DMC Mining Reports A$20K Operating Cash Outflow, Secures A$875K Loan Facility
DMC Mining Group reported a modest cash outflow for the September quarter while securing a loan facility variation and initiating a $6 million capital raise to support its exploration ambitions.
- Net cash used in operating activities of A$20,000 for the quarter
- Loan facility with Aries Finance extended to A$875,000
- Capital raising underway to issue up to 120 million shares at $0.05 each
- Estimated funding runway of approximately 13 quarters
- Company confirms compliance with accounting standards and ongoing operational viability
Quarterly Cash Flow Overview
DMC Mining Group has released its quarterly cash flow report for the period ending 30 September 2025, revealing a net cash outflow of A$20,000 from operating activities. Investing activities also saw a minor cash outflow of A$1,000, while financing activities contributed a modest inflow of A$6,000. Overall, the company’s cash position remains tight but stable, with cash and cash equivalents at quarter-end totaling A$18,000.
Loan Facility Extension with Aries Finance
In a strategic move to bolster its financial flexibility, DMC Mining signed a variation to its existing loan facility with Aries Finance Pty Ltd in March 2025. The total facility now stands at A$875,000, comprising previous advances and accrued interest, plus an additional A$200,000 available for drawdown in instalments. This facility is secured by a first-ranking security interest over the company’s assets and carries a 10% interest fee per quarter, underscoring the cost of capital for the company at this stage.
Capital Raising to Support Growth
To further underpin its exploration and development activities, DMC Mining has launched a capital raising initiative aiming to issue up to 120 million fully paid ordinary shares at an issue price of $0.05 per share. This offer is expected to raise up to A$6 million before costs, providing a significant injection of funds to support the company’s ongoing projects and corporate expenses. The company has indicated that the use of funds will align with the prospectus disclosures, primarily covering expenses related to the public offer and exploration efforts.
Funding Outlook and Operational Continuity
Based on current cash reserves and available financing facilities, DMC Mining estimates it has sufficient funding to sustain operations for approximately 13 quarters. This runway provides a comfortable buffer as the company advances its exploration programs and awaits the outcome of its capital raising. The quarterly report also includes a compliance statement affirming adherence to accounting standards and the company’s ability to continue as a going concern, providing reassurance to investors and stakeholders.
Looking Ahead
While the company’s cash outflows remain modest, the successful completion of the capital raise and prudent management of its loan facility will be critical to maintaining momentum. Investors will be watching closely for updates on the capital raising progress and any shifts in operational strategy that could impact the company’s financial health and exploration outcomes.
Bottom Line?
DMC Mining’s financial maneuvers set the stage for sustained exploration, but the success of its capital raise will be pivotal.
Questions in the middle?
- Will DMC Mining successfully complete its $6 million capital raising as planned?
- How will the company deploy the new funds to accelerate exploration or development?
- Are there any plans to renegotiate loan terms to reduce financing costs?
