Alchemy Resources Sustains 17-Quarter Cash Runway Despite Q1 Outflows
Alchemy Resources Limited reported a modest net cash outflow in operating activities for Q1 2025 but ended the quarter with a robust cash balance supporting over 17 quarters of funding.
- Net cash used in operating activities of AUD 79,000 in Q1 2025
- Net cash used in investing activities of AUD 30,000
- Cash and equivalents of AUD 1.894 million at quarter end
- No financing activities or borrowings during the quarter
- Estimated funding runway of approximately 17.4 quarters based on current cash outflows
Quarterly Cash Flow Overview
Alchemy Resources Limited (ASX: ALY) has released its cash flow report for the quarter ended 31 March 2025, revealing a cautious but stable financial footing. The company recorded a net cash outflow from operating activities of AUD 79,000, reflecting ongoing expenditure primarily related to staff costs and administration. Investing activities also saw a modest cash outflow of AUD 30,000, likely linked to exploration-related expenditures.
Strong Cash Reserves and Funding Longevity
Despite these outflows, Alchemy Resources closed the quarter with a healthy cash and cash equivalents balance of AUD 1.894 million. Notably, the company did not engage in any financing activities during the period, nor did it draw on any borrowings or financing facilities. This strong cash position translates into an estimated funding runway of approximately 17.4 quarters, providing significant operational flexibility and a buffer against near-term market uncertainties.
Payments to Associates and Governance Transparency
The report also disclosed payments related to associates totaling AUD 89,000 during the quarter. While the nature of these payments was not elaborated upon in detail, such disclosures are critical for maintaining transparency and investor confidence. The company confirmed compliance with ASX Listing Rule 19.11A and Australian accounting standards, underscoring its commitment to regulatory adherence and accurate financial reporting.
Outlook and Operational Considerations
Alchemy Resources did not report any changes to its operating cash flow expectations or plans for capital raising, suggesting confidence in its current funding position. However, the relatively low operating cash outflows may indicate a period of reduced exploration activity or a strategic focus on cost containment. Investors will be watching closely for updates on exploration progress and any forthcoming capital management initiatives that could impact the company’s financial trajectory.
Bottom Line?
With a solid cash buffer and low burn rate, Alchemy Resources is well-positioned to navigate the next phase of exploration, but clarity on future spending and associate payments remains key.
Questions in the middle?
- What is the detailed nature and purpose of the payments made to associates during the quarter?
- Will Alchemy Resources increase exploration activities or capital expenditure in upcoming quarters?
- Does the company have plans for capital raising or financing to accelerate project development?
