Develop Global Limited reported a robust cash position of $203.8 million at the end of September 2025, supported by a significant $161 million inflow from financing activities. Despite operating and investing cash outflows, the company maintains a strong liquidity runway.
- Operating cash outflow of $9.3 million in Q3 2025
- Investing cash outflow of $5.6 million primarily on equipment and exploration
- Financing inflow of $161 million mainly from a fully drawn loan facility
- Cash and equivalents rose to $203.8 million by quarter end
- Estimated funding runway of 26 quarters based on current cash and outflows
Quarterly Cash Flow Overview
Develop Global Limited has released its quarterly cash flow report for the period ending 30 September 2025, revealing a solid financial footing bolstered by a substantial financing inflow. The company recorded a net operating cash outflow of $9.3 million, reflecting ongoing expenditures typical for a mining exploration entity, including staff costs and administrative expenses.
Investing activities also saw a net outflow of $5.6 million, largely attributable to payments for property, plant, equipment, and exploration evaluation. These investments underline Develop Global’s continued commitment to advancing its mining projects and operational capabilities.
Financing and Liquidity Position
The standout feature of this quarter’s report is the $161 million net cash inflow from financing activities. This primarily stems from a fully drawn loan facility with Trafigura Pte Ltd, amounting to $107.2 million, secured with customary senior security and carrying an interest rate linked to the Bank Bill Swap Rate plus a 2% margin. Interest on this loan is capitalised for the first 18 months, providing some breathing room on cash flow.
Additionally, Develop Global maintains equipment financing facilities with several lenders, including Sandvik, Commonwealth Bank of Australia, Epiroc, Cat Finance, and NAB. These facilities have a combined limit of $108 million, with $57.4 million still available, offering further financial flexibility.
Cash Reserves and Funding Runway
At quarter end, Develop Global held $203.8 million in cash and cash equivalents, a significant increase from $57.7 million at the start of the period. When combined with unused financing facilities, the company’s total available funding stands at approximately $261.2 million. Based on current cash outflows, this translates to an estimated funding runway of 26 quarters, suggesting a comfortable liquidity position to support ongoing operations and exploration activities.
Payments to related parties amounted to $397,000 during the quarter, a detail disclosed in compliance with ASX requirements but without further elaboration. No dividends were paid or received, consistent with the company’s focus on reinvestment and growth.
Looking Ahead
While the report does not provide forward-looking guidance or updates on production, the strong cash position and available financing facilities position Develop Global well to navigate the next phases of its development. Investors will be watching closely for how the company deploys this capital and manages its operating costs in the coming quarters.
Bottom Line?
Develop Global’s substantial cash reserves and financing flexibility set the stage for sustained exploration and growth, but the market will seek clarity on capital deployment and operational progress.
Questions in the middle?
- How will Develop Global allocate its significant cash reserves across projects?
- What impact will the capitalised interest period have on future cash flows?
- Are there plans to reduce reliance on external financing or to raise equity?