Horizon Minerals Secures A$15.7M Cash, Extends Funding Runway to 6.5 Quarters
Horizon Minerals reported a solid cash position of A$15.7 million at the end of June 2025, supported by a US$5 million convertible loan facility, providing a runway of approximately 6.5 quarters at current spending levels.
- Net cash used in operating activities, A$1.845 million
- Net cash used in investing activities – A$5.56 million
- Net cash inflow from financing activities – A$11.035 million
- Cash and cash equivalents at quarter end, A$15.7 million
- US$5 million secured convertible loan facility fully drawn
Quarterly Cash Flow Overview
Horizon Minerals Ltd has released its quarterly cash flow report for the period ending 30 June 2025, revealing a net cash outflow from operating activities of A$1.845 million. This reflects ongoing expenditures typical of a mining exploration and development company, including exploration, evaluation, and administrative costs.
Investing activities also saw a net cash outflow of A$5.56 million, primarily driven by payments related to exploration and evaluation, as well as property, plant, and equipment acquisitions. These investments underline Horizon’s commitment to advancing its resource base and operational capabilities.
Financing and Liquidity Position
On the financing front, Horizon Minerals generated a net cash inflow of A$11.035 million. This was mainly sourced from equity issues and borrowings, including the full drawdown of a US$5 million Nebari Convertible Loan Facility. The loan is secured on a first lien basis and carries a convertible coupon, offering flexibility for both the company and lenders.
As a result, Horizon ended the quarter with a robust cash and cash equivalents balance of A$15.7 million. This liquidity position, combined with the current expenditure profile, supports an estimated funding runway of approximately 6.5 quarters, providing the company with a comfortable buffer to continue its exploration and development activities without immediate funding concerns.
Convertible Loan Facility Details
The Nebari Convertible Loan Facility is a key component of Horizon’s capital structure. It comprises a US$5 million loan with a 42-month term, a 7% convertible coupon plus a term SOFR delta, and a conversion price set at a 25% premium to the company’s recent volume-weighted average share price. The loan’s terms allow for potential conversion into Horizon shares, which could impact future equity dilution depending on market conditions and lender decisions.
Strategic Implications
Horizon’s cash flow report signals a company actively investing in its growth pipeline while maintaining a solid financial footing. The balance between operating cash outflows and financing inflows suggests a strategic approach to funding exploration and development without overextending its balance sheet. However, the convertible loan facility introduces an element of future equity dilution risk that investors will want to monitor closely.
Bottom Line?
Horizon Minerals’ strong cash position and convertible loan facility provide a solid runway, but the potential equity impact of the loan conversion remains a key watchpoint.
Questions in the middle?
- How will Horizon manage potential equity dilution from the convertible loan conversion?
- What are the company’s plans for exploration and development spending in the coming quarters?
- Could Horizon seek additional financing or partnerships to accelerate project advancement?
