Tombador Iron Reports $317k Net Cash Outflow, Holds $10.8M in Cash

• Net cash outflow of $317,000 for the December 2024 quarter
• Cash and cash equivalents total $10.825 million at quarter-end
• Operating expenses primarily driven by administration and staff costs
• No proceeds from equity or debt financing during the quarter
• Estimated funding runway exceeds 34 quarters based on current cash burn

Quarterly Cash Flow Overview

Tombador Iron Limited has released its Appendix 5B quarterly cash flow report for the period ending 31 December 2024, revealing a net cash outflow of $317,000. This modest negative cash flow reflects ongoing operational expenditures, primarily in administration and staff costs, which amounted to $686,000 and $174,000 respectively for the quarter.

Despite the outflow, the company’s cash position remains strong, with cash and cash equivalents standing at $10.825 million as of the quarter’s close. This substantial cash reserve provides a significant buffer to support Tombador’s exploration activities and corporate overheads.

Operational Spending and Revenue Streams

The report indicates no receipts from customers during the quarter, consistent with Tombador’s status as a mining exploration entity. Interest income contributed $84,000, while royalty income added a further $112,000, partially offsetting operating expenses.

Exploration and evaluation costs were not separately detailed as cash outflows in investing activities, suggesting minimal capital expenditure on new tenements or property, plant, and equipment during the period. The company also reported no proceeds from equity issues, convertible debt, or borrowings, indicating no new financing was raised in this quarter.

Financial Position and Future Outlook

With total relevant outgoings of $317,000 and cash reserves exceeding $10 million, Tombador Iron estimates it has sufficient funding to sustain operations for approximately 34 quarters at the current burn rate. This runway provides considerable operational flexibility, allowing the company to continue its exploration and evaluation programs without immediate financing concerns.

The absence of new financing activity suggests management is confident in the current cash position and does not foresee the need for capital raising in the near term. However, the company’s ongoing cash burn, driven by administrative and staff costs, will require monitoring to ensure sustainability as exploration activities potentially scale up.

Governance and Compliance

The report confirms compliance with ASX Listing Rule 19.11A and provides transparency on payments to related parties, totaling $159,000 for the quarter. This disclosure aligns with regulatory expectations and supports investor confidence in governance practices.

Overall, Tombador Iron’s December quarter cash flow report paints a picture of a well-capitalised exploration company maintaining steady operational expenditure while preserving a strong liquidity position.

Bottom Line?

Tombador Iron’s strong cash reserves offer a comfortable runway, but future exploration spending and funding strategies will be key to watch.

Questions in the middle?

• Will Tombador Iron increase exploration spending in upcoming quarters?
• Are there plans to raise capital or secure financing to accelerate development?
• How will the company manage administrative costs as operations evolve?