High Peak Royalties Clears Debt and Boosts Cash Flow in December Quarter
High Peak Royalties reported robust cash receipts and successfully repaid its Macquarie Bank facility in the December 2024 quarter, while advancing its geothermal exploration strategy in South Australia.
- December quarter gross receipts of A$189,726 with net cash receipts of A$117,439
- Full repayment of US$750,000 Macquarie Bank financing facility during the quarter
- Stable gas production at Peat Gas Field with average daily output of 9.27 TJ/day
- Ongoing monitoring of royalty interests in Northern Territory and Gippsland Basin
- Strategic review and stakeholder engagement advancing geothermal exploration assets
Strong Quarterly Cash Flow and Debt Repayment
High Peak Royalties (ASX: HPR) has delivered a solid financial performance in the December 2024 quarter, reporting gross royalty receipts of A$189,726 and net cash receipts of A$117,439 after operating expenses. The company closed the quarter with a cash balance of A$190,180, underscoring its healthy liquidity position.
Significantly, High Peak completed the full repayment of its US$750,000 (approximately A$1.17 million) financing facility with Macquarie Bank during the quarter. This milestone eliminates prior encumbrances and guarantees, freeing the company from associated financial obligations and potentially enhancing its capital flexibility going forward.
Operational Highlights Across Royalty Portfolio
The company continues to monitor its diverse royalty interests across Australia and the United States. In Queensland, royalty receipts from Origin’s Peat Gas Field (PL101) amounted to A$129,025 for production in the September quarter, with December quarter gas output averaging 9.27 terajoules per day, consistent with historical levels and company expectations.
In the Northern Territory, High Peak holds a 1% royalty interest in several Amadeus Basin permits. While no new updates have emerged regarding farmout discussions for key permits EP112 and EP125, the company confirmed the return of Central Petroleum’s interests to pre-farmout status following the default of Peak Helium.
Similarly, the Gippsland Basin Longtom royalty (0.3% interest) remains under close watch, with no recent developments reported by operators SGH Energy or Amplitude Energy.
Advancing Geothermal Exploration Strategy
High Peak’s wholly owned subsidiary, Torrens Energy, holds four geothermal exploration licenses and four applications in South Australia. During the quarter, the company appointed Dr. Chris Matthews to assist in evaluating the geothermal assets and refining the business plan towards near-term commercialisation.
Efforts have focused on identifying strategic partnerships and corporate opportunities to progress Torrens Energy towards self-funding and commercial viability. The company also completed a new Environmental Impact Report and Statement of Environmental Objectives, initiating stakeholder consultations as part of regulatory compliance and environmental stewardship.
Corporate Governance and Portfolio Valuation
High Peak successfully passed all resolutions at its 2024 Annual General Meeting, reflecting shareholder support for its current strategy. The company also engaged Breakaway Research Pty Ltd to provide an independent risk-adjusted valuation of its royalty portfolio, enhancing transparency and investor confidence.
With the Macquarie facility fully repaid and ongoing engagement with operators across its portfolio, High Peak is positioned to leverage its royalty interests while advancing its geothermal ambitions.
Bottom Line?
High Peak’s debt-free status and steady royalty cash flows set a solid foundation as it pursues growth through geothermal exploration and strategic partnerships.
Questions in the middle?
- What timeline and milestones can investors expect for Torrens Energy’s geothermal commercialisation?
- How might fluctuations in gas production or commodity prices impact High Peak’s royalty income going forward?
- Are there potential new royalty acquisitions or partnerships on the horizon to diversify the portfolio further?
