Savannah Goldfields Posts AUD 3.3M Operating Cash Outflow, Funding Lasts 2.34 Quarters

Operating Cash Flow Pressures

Savannah Goldfields Limited’s latest quarterly cash flow report reveals a challenging liquidity environment as the gold explorer recorded a net cash outflow of AUD 3.287 million from operating activities for the three months ending 31 March 2025. This outflow reflects ongoing expenditure on exploration and corporate costs, underscoring the capital-intensive nature of the company’s operations.

Despite no receipts from customers during the quarter, Savannah Goldfields continued to invest in its exploration programs, with payments for exploration and evaluation recorded at AUD 76,000 classified under investing activities. Staff costs and administration expenses further weighed on cash resources.

Liquidity and Funding Position

At the end of the quarter, the company’s cash and cash equivalents had shrunk to a mere AUD 192,000, a stark decline that highlights the urgency of securing additional funding. However, Savannah Goldfields maintains access to substantial financing facilities totaling AUD 14 million, of which AUD 6.307 million was drawn as of 31 March 2025.

The company’s available funding, combining cash on hand and undrawn facilities, totals AUD 7.885 million. Based on the current cash burn rate, this provides an estimated 2.34 quarters of runway, a critical metric for investors assessing the company’s near-term viability.

Loan Facilities and Related Party Transactions

Savannah Goldfields’ financing structure includes three primary loan facilities: an unsecured AUD 7.5 million facility from Bizzell Nominees Pty Ltd (associated with the company’s chairman) drawn to approximately AUD 977,000; a secured AUD 6 million facility from Norfolk Enchants Pty Ltd, an unrelated third party, with a high 20% interest rate and AUD 5.23 million drawn; and a smaller unsecured AUD 0.5 million facility from Nambia Pty Ltd, linked to non-executive director R Anthon, with AUD 100,000 drawn.

Payments to related parties amounted to AUD 135,000 during the quarter, reflecting ongoing operational or administrative arrangements. The presence of high-interest and related-party loans may raise questions about the company’s cost of capital and governance practices.

Outlook and Operational Continuity

While Savannah Goldfields has not provided explicit forward guidance, the report confirms compliance with accounting standards and asserts the company’s intention to continue operations. The limited cash reserves and reliance on financing facilities suggest that management will need to carefully manage expenditures and possibly pursue additional capital raising to sustain exploration activities and meet business objectives.

Investors will be watching closely for any announcements regarding refinancing, cost control measures, or progress on exploration results that could improve the company’s financial outlook.