Freehill Mining Ends Q2 with A$560k Cash, Less Than One Quarter’s Funding
Freehill Mining Ltd reported a challenging quarter ending June 2025 with net cash outflows from operations, but anticipates improved revenues from its Chilean operations as it ramps up activity.
- Net cash used in operating activities of A$575k for the quarter
- Cash and equivalents at A$560k, covering less than one quarter of funding needs
- Expectations of increased revenue and margins from Chilean operations due to new lease
- Administration costs expected to decline following payment of historical creditors
- No immediate capital raising planned, but future fundraising remains possible
Quarterly Cash Flow Overview
Freehill Mining 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$575,000. The company’s cash position tightened during the quarter, ending with A$560,000 in cash and equivalents, representing less than one quarter of estimated funding availability based on current expenditure levels.
Operational Challenges and Cost Management
The company’s operating cash outflows were driven by exploration, staff costs, and administration expenses. Notably, the quarter included payments of historical creditor balances that had been deferred pending a capital raise. Management expects administration and corporate costs to decrease in upcoming quarters, signaling a tighter control on overheads as the company moves forward.
Optimism from Chilean Operations
Looking ahead, Freehill Mining is optimistic about its Chilean operations. A lease agreement entered into in April 2025 positions the company to ramp up production and sales activities in this key region. The move to a major construction centre in Chile is expected to drive both volume growth and improved margins, potentially stabilising cash flows and supporting operational sustainability.
Funding Outlook and Strategic Considerations
Despite the current cash constraints, Freehill Mining does not plan an immediate capital raise. However, the company remains vigilant and open to fundraising opportunities that could enhance shareholder value, whether through existing operations or new projects. This cautious stance reflects a balancing act between preserving shareholder equity and securing sufficient liquidity to fund growth initiatives.
Looking Forward
Freehill Mining’s near-term outlook hinges on the successful ramp-up of its Chilean operations and disciplined cost management. Investors will be watching closely to see if these operational improvements translate into stronger cash flows and whether the company can extend its funding runway beyond the current tight window.
Bottom Line?
Freehill Mining’s upcoming quarters will test its operational turnaround in Chile and its ability to secure funding before cash reserves run critically low.
Questions in the middle?
- How quickly will the Chilean operations ramp up to deliver the expected revenue growth?
- What specific cost reductions are planned beyond the current quarter to improve cash flow?
- If cash reserves fall below critical levels, what are the company’s contingency plans for funding?