How Will Lion Energy Leverage AUD 2.13M Cash Amid Q2 Outflows?
Lion Energy Limited reported a net cash outflow in Q2 2025 but maintains a solid cash position of AUD 2.13 million alongside a convertible note facility, signaling cautious optimism for its exploration activities.
- Net cash used in operating activities, AUD 561,000
- Investing activities cash outflow – AUD 78,000
- Financing activities cash outflow, AUD 44,000
- Cash and cash equivalents at quarter end, AUD 2.13 million
- Unsecured convertible note facility of AUD 1.6 million maturing December 2025
Quarterly Cash Flow Overview
Lion Energy Limited’s latest quarterly cash flow report for the period ending 30 June 2025 reveals a company managing its liquidity carefully amid ongoing exploration efforts. The company recorded a net cash outflow of AUD 561,000 from operating activities, reflecting continued expenditure on staff and corporate costs without corresponding revenue inflows.
Investing activities also saw a modest cash outflow of AUD 78,000, primarily related to exploration and evaluation expenditures. Financing activities contributed a further cash outflow of AUD 44,000, mainly repayments of borrowings, underscoring a conservative approach to managing debt obligations.
Cash Position and Funding Facilities
Despite these outflows, Lion Energy ended the quarter with a healthy cash balance of AUD 2.13 million, down from AUD 2.82 million at the previous quarter’s start. This cash reserve provides a buffer for ongoing operational and exploration activities. Additionally, the company holds an unsecured convertible note facility valued at AUD 1.6 million, maturing on 31 December 2025. This facility offers potential liquidity support, with conversion options available to note holders at a price of 2.7 cents per share.
The company’s change in presentation currency from US dollars to Australian dollars, effective 1 January 2025, aligns reporting with its primary market and investor base, potentially improving transparency and comparability for stakeholders.
Related Party Payments and Governance
Payments to related parties and their associates amounted to AUD 376,000 during the quarter, a figure that warrants attention from investors mindful of governance and related-party transaction risks. The company has not provided detailed commentary on these payments, leaving questions about their nature and impact.
Outlook and Operational Sustainability
Based on current cash outflows and available funding, Lion Energy estimates it has sufficient resources to cover approximately 3.5 quarters of operations. The company did not disclose plans for additional capital raising or changes in operating cash flow levels, suggesting a wait-and-see approach as it advances its exploration agenda.
Overall, Lion Energy’s quarterly report paints a picture of a company balancing exploration ambitions with prudent financial management, though the absence of forward guidance leaves investors seeking clarity on the path ahead.
Bottom Line?
Lion Energy’s cash runway offers breathing room, but upcoming decisions on funding and exploration results will be critical.
Questions in the middle?
- What are the specifics and implications of the AUD 376,000 related party payments?
- Will Lion Energy seek to convert or refinance its AUD 1.6 million convertible note before maturity?
- How will exploration results in coming quarters impact the company’s cash flow and funding needs?