DMC Mining Reports $56K Operating Cash Outflow, Secures $875K Loan Facility
DMC Mining Group reported a modest cash outflow for the March quarter while securing a key loan facility variation and progressing a $6 million capital raising to support ongoing operations.
- Net cash used in operating activities of A$56,000 for the quarter
- Net cash used in investing activities of A$10,000
- Net cash inflow from financing activities of A$99,000, mainly from loan repayments
- Loan facility with Aries Finance Pty Ltd varied to total A$875,000
- Capital raising underway to raise up to A$6 million via share offer at $0.05 per share
Quarterly Cash Flow Overview
DMC Mining Group has released its quarterly cash flow report for the period ending 31 March 2025, revealing continued financial pressures typical of a mining exploration entity in its development phase. The company recorded a net cash outflow of A$56,000 from operating activities, reflecting ongoing expenditure on corporate and administrative costs without offsetting revenue inflows. Investing activities also consumed A$10,000, consistent with exploration and evaluation spending.
Despite these outflows, financing activities provided a net inflow of A$99,000, primarily attributable to loan repayments and minor equity transactions. This inflow helped mitigate the overall cash burn, leaving the company with a closing cash balance of A$73,000 at quarter end.
Loan Facility Variation and Funding Strategy
Significantly, DMC Mining Group secured a variation to its existing loan facility with Aries Finance Pty Ltd, increasing the total available facility to A$875,000. This facility comprises multiple tranches advanced since July 2024, including accrued interest and a new tranche of A$100,000 drawn in March 2025. Additionally, a further A$200,000 remains available to be drawn in instalments, providing the company with a critical liquidity buffer to manage near-term expenses.
The loan is explicitly intended to cover costs related to the company's public offer and prospectus completion, underscoring the strategic importance of the capital raising to the company’s financial health.
Capital Raising Progress and Outlook
DMC is actively conducting a capital raising through an offer of up to 120 million fully paid ordinary shares at an issue price of $0.05 per share, targeting gross proceeds of up to A$6 million before costs. The prospectus lodgement with ASIC has seen its closing date extended twice, now set for 8 May 2025, reflecting the company’s efforts to maximize investor participation.
The company’s management expects operating cash flows to remain at current levels until the public offer completes and the company relists on the ASX, at which point normal operations are anticipated to resume. The successful completion of this capital raising is critical for DMC to continue funding its exploration activities and meet its business objectives.
Financial Position and Future Funding
At quarter end, DMC reported total available funding of approximately A$273,000, combining cash on hand and unused financing facilities. This equates to an estimated 4.88 quarters of funding based on current expenditure levels, providing a modest runway as the company navigates its capital raising and operational plans.
Management has affirmed its commitment to adjusting expenditure as necessary to align with available funding and remains confident in securing ongoing capital to sustain operations.
Governance and Compliance
The quarterly report was authorised for release by Managing Director David Sumich, who confirmed that the financial records have been properly maintained and the report gives a true and fair view of the company’s cash flows. This transparency is vital for maintaining investor confidence during this pivotal phase for DMC Mining Group.
Bottom Line?
DMC Mining’s near-term viability hinges on the successful close of its $6 million capital raise and prudent cash management.
Questions in the middle?
- Will DMC Mining secure the full $6 million from its extended public offer by 8 May 2025?
- How will the company adjust its exploration and corporate spending if the capital raise falls short?
- What are the terms and conditions attached to the expanded loan facility with Aries Finance, and how might they affect future financial flexibility?