Hastings Reports $10.39M Capital Spend and $8.88M Cash Balance in Q4 2024
Hastings Technology Metals Ltd reported a $2.29 million net cash outflow from operating activities in the December 2024 quarter, alongside significant capital expenditure and new borrowings, highlighting a critical phase in its project development.
- Net operating cash outflow of $2.29 million for the quarter
- Capital expenditure on property, plant, and equipment totals $10.39 million
- Raised $5.36 million through new borrowings during the quarter
- Cash balance stands at $8.88 million at quarter-end
- Estimated funding runway of just over two quarters without additional capital
Quarterly Cash Flow Overview
Hastings Technology Metals Ltd has disclosed its cash flow report for the quarter ending 31 December 2024, revealing a net cash outflow from operating activities of $2.29 million. This figure underscores ongoing expenditure pressures as the company advances its technology metals projects amid a challenging market environment.
The company’s operating cash flow was further impacted by administrative and corporate costs totaling $4.92 million year-to-date, reflecting the overheads associated with project development and corporate governance.
Significant Capital Investments
Investing activities during the quarter saw Hastings commit $10.39 million to property, plant, and equipment, alongside $1.71 million capitalised exploration and evaluation expenditure. These investments signal a clear focus on advancing project infrastructure and resource evaluation, critical steps toward eventual production readiness.
Despite these outflows, the company did not report any proceeds from asset disposals or dividends, indicating a concentrated reinvestment strategy rather than asset monetisation.
Financing and Liquidity Position
To support its capital-intensive activities, Hastings secured $5.36 million in new borrowings during the quarter, partially offsetting cash outflows. The company’s cash and cash equivalents stood at $8.88 million at the end of December, down from $9.9 million at the start of the quarter.
Notably, Hastings maintains a substantial financing facility of over $199 million in redeemable exchangeable notes, issued in October 2022, which remain a key component of its capital structure. These notes carry a high interest rate and are convertible into ordinary shares, reflecting a complex financing arrangement that will require careful management as maturity approaches in October 2025.
Funding Runway and Forward Outlook
Based on current cash outflows and capitalised expenditures, Hastings estimates it has approximately 2.2 quarters of funding available without additional capital raises. The company notes that material construction costs will only be incurred subject to final project financing, suggesting a cautious approach to expenditure until funding certainty is achieved.
While no immediate plans for further capital raising were disclosed, the limited runway and ongoing investment needs highlight the importance of securing additional funding or advancing project milestones to sustain operations and meet strategic objectives.
Bottom Line?
Hastings Technology Metals stands at a financial crossroads, with its near-term funding runway tight and significant project investments underway.
Questions in the middle?
- What are Hastings’ plans to secure additional funding beyond the current cash runway?
- How will the company manage the maturity and interest obligations of its redeemable exchangeable notes?
- What milestones or project developments could unlock further financing or operational cash flow?
