Lefroy Exploration Limited reported a modest net cash decrease in the December quarter, ending with $3.24 million in cash reserves and nearly four quarters of funding available. The company continues to invest heavily in exploration activities despite operating cash outflows.
- Net cash decreased by $17,000 in the December 2024 quarter
- Cash and cash equivalents stand at $3.243 million
- Exploration and evaluation expenses totaled $538,000 capitalized and $321,000 expensed
- Financing activities contributed $2.757 million in proceeds from equity issues
- Estimated funding runway of approximately 3.78 quarters based on current outgoings
Quarterly Cash Flow Overview
Lefroy Exploration Limited has released its Appendix 5B quarterly cash flow report for the period ending 31 December 2024, revealing a slight net cash decrease of $17,000. The company closed the quarter with $3.243 million in cash and cash equivalents, a figure that underscores its current liquidity position amid ongoing exploration activities.
The report highlights that operating activities resulted in a net cash outflow of $321,000 for the quarter, reflecting continued expenditure on exploration and evaluation. Capitalized exploration and evaluation costs amounted to $538,000, indicating a significant investment in advancing the company’s mineral prospects.
Funding and Financing Activities
On the financing front, Lefroy Exploration secured $2.757 million from equity issues during the quarter, offset by transaction costs of $22,000. This capital injection has been critical in maintaining the company’s cash reserves and funding its exploration programs without resorting to debt facilities, as no borrowings were reported.
The company’s cash runway, calculated based on current operating and capitalized exploration outgoings, stands at approximately 3.78 quarters. This suggests that Lefroy has sufficient liquidity to sustain its activities into the latter half of 2025, assuming no significant changes in expenditure or revenue.
Operational and Governance Notes
Payments to related parties, including non-executive director fees and a portion of the CEO’s remuneration related to administration, totaled $10,000 for the quarter. Additionally, Taurus Funds Management Pty Ltd received $36,752 for office administration and rental costs, reflecting ongoing operational overheads.
The report was authorised by the Board of Directors and complies with Australian Accounting Standards and ASX Listing Rules, providing a transparent and compliant snapshot of Lefroy’s financial position.
Looking Ahead
While the report does not provide explicit guidance on future cash flow expectations or plans for additional capital raising, the current financial position suggests that Lefroy Exploration is managing its resources prudently. Investors will be watching closely for updates on exploration results and any strategic moves to extend the company’s funding horizon.
Bottom Line?
Lefroy Exploration’s solid cash position supports ongoing exploration, but future funding strategies remain a key watchpoint.
Questions in the middle?
- Will Lefroy Exploration maintain its current level of exploration spending in upcoming quarters?
- Are there plans to raise additional capital beyond the recent equity issues?
- How will exploration results impact the company’s cash flow and funding needs moving forward?