Tesoro Gold Posts A$652K Operating Outflow, Raises $26.7M for El Zorro
Tesoro Gold Limited reported a challenging quarter with significant cash outflows but secured $26.7 million in capital to advance its El Zorro Project. The company aims to sustain operations through a planned second tranche of funding.
- Quarterly operating cash outflow of A$652,000
- Investing cash outflows of A$3.2 million focused on exploration and evaluation
- Raised A$26.7 million in first tranche of a $34 million capital raise
- Second tranche of funding expected by November 2025, pending shareholder approval
- Cash reserves at quarter end stood at A$3.75 million
Quarterly Cash Flow Overview
Tesoro Gold Limited has disclosed its cash flow report for the quarter ending 30 September 2025, revealing a net cash outflow from operating activities of A$652,000. This reflects ongoing expenditures primarily related to staff and corporate costs, with no receipts from customers during the period. Investing activities also saw a significant cash outflow of A$3.2 million, largely directed towards exploration and evaluation efforts at the company’s key asset, the El Zorro Project.
Capital Raising to Support Operations
Despite these outflows, Tesoro Gold successfully raised A$26.7 million in the first tranche of a planned $34 million capital raise. This infusion of funds is intended to finance operations at El Zorro through to the Final Investment Decision stage. The company has indicated that a second tranche, subject to shareholder approval, is expected to be completed by the end of November 2025. This capital raising effort is critical to maintaining the company’s operational momentum amid ongoing exploration expenditures.
Liquidity and Funding Outlook
At the end of the quarter, Tesoro Gold held cash and cash equivalents of A$3.75 million, down from A$7.5 million at the previous quarter’s start. The company’s estimated cash runway is less than one quarter based on current outgoings, underscoring the importance of the recent capital raise. Management has expressed confidence in continuing operations and meeting business objectives, supported by the successful capital raise and expected completion of the second tranche.
Strategic Implications
The cash flow report highlights the typical financial pressures faced by junior exploration companies as they invest heavily in advancing projects before generating revenue. Tesoro Gold’s ability to secure substantial funding at this stage is a positive signal for investors, though the reliance on shareholder approval for the next tranche introduces some uncertainty. The company’s focus remains firmly on progressing the El Zorro Project, which is pivotal to its future growth prospects.
Bottom Line?
Tesoro Gold’s recent capital raise provides a lifeline, but sustaining momentum hinges on shareholder support and disciplined cash management.
Questions in the middle?
- Will shareholder approval for the second tranche be secured on schedule?
- How will Tesoro Gold manage cash flow if exploration costs increase or delays occur?
- What are the key milestones and timelines for the El Zorro Project following this funding round?