Cash Burn and Loan Reliance: What Risks Lie Ahead for Brazilian Critical Minerals?
Brazilian Critical Minerals Limited reported a net cash outflow of AUD 1.2 million for Q3 2025, offset by strong financing inflows that boosted its cash reserves to AUD 2.46 million. The company’s extended loan facility and available credit provide a runway of over five quarters at current spending levels.
- Q3 operating cash outflow of AUD 1.213 million driven by exploration and corporate costs
- Small investing outflow of AUD 28,000 for property and equipment
- Financing activities generated net inflow of AUD 1.87 million including equity and loan proceeds
- Cash and equivalents rose to AUD 2.46 million at quarter-end
- Drake loan facility extended to December 2026 with 10% interest and flexible repayment options
Quarterly Cash Flow Overview
Brazilian Critical Minerals Limited has released its cash flow report for the quarter ending 30 September 2025, revealing a net cash outflow from operating activities of AUD 1.213 million. This outflow primarily reflects ongoing exploration and evaluation expenses, alongside corporate and administrative costs. The company continues to invest modestly in property, plant, and equipment, with a small outflow of AUD 28,000 recorded under investing activities.
Financing Strengthens Liquidity Position
Despite the operating cash burn, Brazilian Critical Minerals bolstered its liquidity through financing activities, which delivered a net inflow of AUD 1.87 million. This included proceeds from equity issues and borrowings under the Drake Special Solutions LLC loan facility. The company ended the quarter with cash and cash equivalents of AUD 2.46 million, up from AUD 1.7 million at the start of the period.
Loan Facility Extension and Terms
Significantly, the company’s loan facility with Drake Special Solutions LLC was extended to 15 December 2026. The facility, capped at AUD 6.6 million, carries a 10% interest rate and offers flexible repayment options, including cash or equity issuance subject to shareholder approval. At quarter-end, AUD 2.25 million was drawn, leaving an unused credit standby of AUD 4.35 million available to support ongoing operations.
Funding Runway and Operational Outlook
Combining cash reserves and available financing, Brazilian Critical Minerals has total funding of AUD 6.81 million, which translates to an estimated 5.6 quarters of operational runway at current expenditure levels. Payments to related parties, including director fees and salaries, amounted to AUD 116,000 during the quarter, reflecting standard corporate governance practices.
While the report does not provide detailed updates on exploration progress or future capital raising plans, the company’s extended financing facility and solid cash position suggest it is well-positioned to continue advancing its critical minerals projects in Brazil.
Bottom Line?
With a strengthened cash position and extended loan facility, Brazilian Critical Minerals appears set to sustain its exploration efforts well into 2026.
Questions in the middle?
- What are the company’s plans for utilising the remaining undrawn loan facility?
- How will shareholder approval processes impact the timing and method of loan repayments?
- Are there any upcoming milestones or exploration results that could influence future funding needs?
