Liquidity Concerns Mount as Auric Mining Bets on New Ore Processing Contract
Auric Mining reports a positive operating cash flow for Q3 2025 and a new ore processing agreement, but faces a critical short-term funding gap.
- Q3 operating cash inflow of A$1.01 million
- Year-to-date investing outflows of A$8.82 million on exploration
- Secured A$3 million loan facility at 8% interest, repayable March 2026
- Toll Milling and Ore Purchase Agreement with Black Cat Syndicate Ltd
- Cash reserves sufficient for only 0.28 quarters without additional funding
Quarterly Cash Flow Highlights
Auric Mining Ltd has released its cash flow report for the quarter ending 30 September 2025, revealing a net positive operating cash flow of A$1.01 million. This marks a solid operational performance driven primarily by interim cash distributions from gold sales at the Jeffreys Find project. However, the company’s investing activities continue to weigh heavily on its liquidity, with payments totaling A$8.82 million year-to-date, largely attributable to exploration and evaluation expenditures.
Financing and Loan Facilities
The company maintains a secured loan facility of A$3 million with BML Ventures Pty Ltd, bearing an 8% annual interest rate and repayable by March 2026. This facility is secured against shares in the Coolgardie mining lease, providing Auric with some financial flexibility. Despite this, the company’s cash and equivalents at quarter-end stood at just A$930,000, highlighting a tight liquidity position.
Strategic Ore Processing Agreement
In a significant operational development, Auric executed a Toll Milling and Ore Purchase Agreement with Black Cat Syndicate Ltd. This contract allows for up to 125,000 tonnes of ore to be processed at the Lakewood Mill, with the first 60,000 tonnes currently underway. The company anticipates first gold sales from this arrangement in November 2025, which could provide a crucial boost to cash flow and operational momentum.
Funding Outlook and Risks
Despite these positive steps, Auric’s estimated funding runway is just 0.28 quarters based on current cash and operating outflows, underscoring an urgent need for additional capital or improved cash generation. The company acknowledges this shortfall but expresses confidence in continuing operations based on the ore processing agreement and expected gold sales. Investors will be watching closely to see if these projections materialize and whether Auric can secure further funding if needed.
Bottom Line?
Auric’s near-term survival hinges on successful ore processing and gold sales, with liquidity challenges looming.
Questions in the middle?
- Will Auric Mining secure additional funding to extend its cash runway beyond the next quarter?
- How quickly will gold sales from the Lakewood Mill processing translate into sustainable cash flow?
- What are the risks if the Toll Milling and Ore Purchase Agreement underperforms or faces delays?