Antares Metals Posts $704k Cash Outflow in Q4, Holds $2.97m Cash Reserves
Antares Metals Limited reported a net cash outflow of $704,000 for the December 2024 quarter, driven by operating expenses, while maintaining a healthy cash balance of nearly $3 million.
- Net cash used in operating activities of $704,000 for Q4 2024
- Cash and cash equivalents at $2.965 million at quarter-end
- Estimated 3.7 quarters of funding available based on current outgoings
- No new borrowings or financing facilities drawn during the quarter
- Accounting policy change led to exploration costs expensed rather than capitalised
Quarterly Cash Flow Overview
Antares Metals Limited has released its Appendix 5B quarterly cash flow report for the period ending 31 December 2024, revealing a net cash outflow of $704,000 from operating activities. This outflow reflects ongoing expenditures related to exploration, evaluation, and corporate overheads, consistent with the company's status as a mining exploration entity.
Despite the cash burn, Antares Metals ended the quarter with a robust cash position of $2.965 million, providing a buffer to support its exploration activities and corporate functions in the near term.
Funding and Financial Position
The company reported no new borrowings or credit facilities drawn during the quarter, indicating a reliance on existing cash reserves and equity financing. Net cash from financing activities was positive at $2.062 million, primarily reflecting proceeds from equity issues and investments related to the Capella Metals acquisition.
With total relevant outgoings of approximately $798,000 for the quarter, Antares Metals estimates it has sufficient funding to cover around 3.7 quarters of operations at the current expenditure rate. This runway provides some operational stability but also underscores the importance of future capital management strategies.
Accounting Policy Update and Cost Management
During the period, Antares Metals adopted a new accounting policy to expense exploration costs as incurred rather than capitalising them. This change resulted in a reclassification of $206,000 from capitalised expenditure to operating expenses, impacting the cash flow presentation but aligning with industry accounting standards.
Staff costs, including non-executive director fees and CEO remuneration, accounted for a portion of operating expenses, with $86,000 attributed to exploration activities in the quarter.
Outlook and Considerations
While the company’s cash position remains solid, the ongoing net cash outflows highlight the need for prudent financial management. Antares Metals has not indicated plans for additional fundraising in this report, leaving investors to watch closely for future capital raising or operational adjustments.
The absence of borrowings and unused financing facilities suggests a conservative approach to leverage, which may be advantageous in maintaining financial flexibility amid volatile commodity markets.
Bottom Line?
Antares Metals’ cash reserves provide a runway, but sustaining operations will require careful cash flow management or new funding initiatives.
Questions in the middle?
- What are Antares Metals’ plans for funding beyond the estimated 3.7 quarters of cash runway?
- How will the new accounting policy impact future financial reporting and investor perception?
- Are there any upcoming exploration milestones or capital projects that could alter cash flow dynamics?
