Connected Minerals Reports $3.9M Underspend Against Prospectus Budget in 2025

Clarifying Financial Transparency

Connected Minerals Limited (ASX, CML) has issued a clarification announcement updating its quarterly activities reports for Q2, Q3, and Q4 of 2025. The company has responded to the Australian Securities Exchange's (ASX) guidance by including additional disclosures required under Listing Rule 5.3.4. These updates provide a detailed comparison between the use of funds outlined in the company's September 2024 prospectus and the actual expenditures incurred since its re-admission to the ASX in late October 2024.

Use of Funds, Variances Explained

The updated reports reveal material variances between the budgeted and actual spending, primarily due to the timing of the company's re-listing on the ASX. For instance, exploration expenditure on Namibian and Western Australian projects remains significantly below the prospectus estimates, reflecting the phased nature of exploration activities and invoicing delays. Expenses related to offers and general working capital also show variances, with some underspending noted in earlier quarters and a slight overrun in general working capital by mid-2025.

Exploration Progress and Strategic Decisions

On the exploration front, Connected Minerals has reported progress at its Swakopmund Uranium Project in Namibia, where reverse circulation drilling was completed over identified paleochannel zones. However, the absence of significant scintillometer readings led the company to withhold further assay sampling or gamma probing, opting instead to review the project's potential before committing additional resources.

In Western Australia, exploration at the Pilbara projects, including Mt Genoa and Civilisation Bore, yielded no significant anomalous results from field mapping and rock chip assays. Consequently, the company is undertaking a comprehensive review of these assets and reassessing future budget allocations.

Licence Termination Reflects Rigorous Evaluation

Notably, Connected Minerals terminated its agreement to acquire EPL9576 in Namibia after an on-site geological assessment by Exploration Manager Herbert Roesener. The licence area was found to consist mainly of older metasedimentary rocks unlikely to host economic uranium mineralisation, with key rock types and scintillometer readings failing to meet the company's criteria. The board concluded that proceeding with the acquisition would dilute shareholder value without sufficient exploration upside.

Looking Ahead

These clarifications underscore Connected Minerals’ commitment to transparency and prudent capital management as it navigates early-stage exploration challenges. Investors should note that the company continues to refine its project portfolio and budget priorities in response to geological findings and market conditions.