Stavely Minerals Limited reported a net cash outflow from operations of AUD 1.264 million for Q3 2025 but bolstered its cash reserves through financing activities, ending the quarter with AUD 1.722 million. The company signals a strategic reduction in exploration expenditure for the upcoming quarter to sustain operations.
- Net cash used in operating activities, AUD 1.264 million
- Financing activities generated AUD 1.818 million, primarily from borrowings
- Cash and equivalents at quarter end – AUD 1.722 million
- Planned reduction in exploration expenditure for December quarter
- Payments to related parties totaled AUD 214,000
Quarterly Cash Flow Overview
Stavely Minerals Limited has released its cash flow report for the quarter ended 30 September 2025, revealing a challenging but managed financial position. The company recorded a net cash outflow of AUD 1.264 million from operating activities, reflecting ongoing exploration and evaluation expenses alongside administrative costs. Despite this operational cash burn, Stavely successfully raised AUD 1.818 million through financing activities, predominantly via borrowings, which helped bolster its liquidity.
Liquidity and Funding Position
At the close of the quarter, Stavely held AUD 1.722 million in cash and cash equivalents, up from AUD 1.169 million at the previous quarter's end. This increase was primarily driven by the financing inflows, offsetting the operational cash outflows and a minor investing outflow of AUD 1,000. The company currently has no undrawn financing facilities, indicating reliance on existing cash reserves and borrowings to fund near-term activities.
Strategic Outlook and Exploration Plans
Looking ahead, Stavely plans to reduce its exploration expenditure in the December 2025 quarter. This strategic adjustment aims to extend the company's cash runway and maintain operational continuity amid the current funding environment. The board has confirmed ongoing monitoring of cash flow and exploration progress, with fundraising efforts aligned to support business objectives as needed.
Governance and Compliance
The quarterly report was authorised by Director Amanda Sparks and confirms compliance with Australian accounting standards and ASX listing rules. Payments to related parties amounted to AUD 214,000 during the quarter, a detail disclosed transparently in line with regulatory requirements. The company’s governance framework appears robust, with clear oversight on financial reporting and risk management.
Implications for Investors
While the cash burn from operations underscores the capital-intensive nature of mineral exploration, Stavely’s ability to secure financing and manage expenditure signals prudent financial stewardship. Investors should watch closely for updates on the December quarter’s exploration spend and any announcements regarding further capital raising or strategic shifts. The company’s liquidity position and operational discipline will be key factors influencing its near-term trajectory.
Bottom Line?
Stavely’s cash flow management and planned expenditure cuts set the stage for a critical December quarter, with funding sustainability in focus.
Questions in the middle?
- Will Stavely secure additional financing beyond current borrowings to support exploration?
- How will the reduced exploration expenditure impact project timelines and potential resource discoveries?
- What are the company’s longer-term plans to transition from exploration to development phases?