Polymetals Revises Cash Flow Report, Secures Funding for Next Two Quarters
Polymetals Resources has updated its June 2025 quarterly cash flow report, confirming nearly two quarters of funding and ongoing revenue from concentrate sales. The company’s financing position remains stable amid planned equity issuance.
- Revised Appendix 5B affects only Section 7 of cash flow report
- Net cash increase of A$8.264 million for the quarter
- Drawn secured loan and lease facilities total approximately A$24.3 million
- Estimated funding covers about 1.95 quarters of operations
- Plans to raise $15 million equity as previously announced
Revised Cash Flow Report Clarifies Funding Position
Polymetals Resources Ltd (ASX – POL) has released a revised Appendix 5B quarterly cash flow report for the quarter ended 30 June 2025. The update pertains solely to Section 7 of the report, which details the company’s financing facilities. This revision provides investors with a clearer picture of Polymetals’ liquidity and funding arrangements as it advances development of its Endeavor silver zinc mine in New South Wales.
Cash Flow and Financing Overview
The company reported a net cash increase of A$8.264 million for the quarter, reflecting a combination of operating, investing, and financing activities. Operating cash outflows amounted to A$7.167 million, largely driven by staff and administration costs, while investing activities consumed A$16.568 million, primarily for project development. Financing activities contributed positively with net inflows of A$47.358 million, including proceeds from equity issues and borrowings.
Polymetals has drawn approximately A$24.3 million from various secured loan and lease facilities, including equipment leases and a US$10 million prepayment facility with Ocean Partners. Unused financing capacity stands at around A$5.685 million, providing additional liquidity buffer.
Funding Sufficiency and Forward Outlook
With cash and equivalents of A$8.264 million at quarter-end and unused facilities, the company estimates total available funding of nearly A$14 million. This supports an operational runway of approximately 1.95 quarters at current expenditure levels. Polymetals has already received its first prepayment for concentrate sales in early July 2025, signaling the commencement of revenue inflows from production.
The company also reiterated plans to raise $15 million through an equity issuance, as previously announced in early July. This capital raise is expected to bolster the balance sheet and support ongoing development and operational costs.
Strategic Implications
Polymetals’ revised cash flow report underscores a cautious but stable financial footing as it transitions from exploration to production. The secured financing arrangements and incoming sales receipts provide a foundation for sustained operations, though the company’s near-term funding horizon remains tight. The success of the planned equity raise will be critical to extending this runway and advancing the Endeavor project toward profitability.
Bottom Line?
Polymetals’ updated cash flow and financing disclosures highlight a pivotal phase, with funding adequacy hinging on upcoming equity capital and sales momentum.
Questions in the middle?
- Will Polymetals successfully complete its $15 million equity raise as planned?
- How quickly will concentrate sales ramp up to generate consistent positive cash flow?
- Are there risks to the company’s near-term funding beyond the current financing facilities?