Legacy Iron Ore Limited reported a positive operating cash flow for Q3 2025, boosting its cash reserves to over A$10 million, supported by ongoing service agreements and the conclusion of a major infrastructure deal.
- Operating cash inflow of A$736,000 for the quarter
- Net cash increase to A$10.192 million by September 30, 2025
- Payments to related parties total A$379,000
- Ongoing technical service fee and profit advance from Bain Global Resources
- Completion of infrastructure sharing agreement with Brightstar
Quarterly Cash Flow Overview
Legacy Iron Ore Limited has released its cash flow report for the quarter ending 30 September 2025, revealing a modest but positive operating cash inflow of A$736,000. This marks a continuation of steady financial management amid ongoing exploration and evaluation activities. Despite outflows related to administration and staff costs, the company managed to increase its cash and cash equivalents to A$10.192 million, reflecting a stable liquidity position.
Investing and Financing Activities
The quarter saw Legacy Iron Ore invest A$271,000, primarily in exploration and evaluation assets, consistent with its focus on resource development. Notably, the company reported no financing activities during the period, indicating no new equity or debt raised. This suggests a reliance on internal cash generation and existing capital reserves to fund operations.
Related Party Transactions and Contractual Agreements
Payments to related parties amounted to A$379,000, encompassing both operating and investing activities. These payments are linked to ongoing contractual arrangements, including a technical service fee of A$110,000 per month and a profit advance of A$300,000 per month from Bain Global Resources, tied to the Mt. Celia gold operation. Additionally, the company concluded its infrastructure sharing agreement with Brightstar, recovering a balance of approximately A$41,000 during the quarter.
Financial Health and Outlook
Legacy Iron Ore's cash position and operating cash flow suggest a comfortable runway, with estimated funding available for over 31 quarters based on current outgoings. The absence of new financing activities points to confidence in existing resources and contractual income streams. However, the company has not provided forward guidance, leaving investors to watch closely for developments in exploration results and contract renewals.
Bottom Line?
Legacy Iron Ore’s solid cash flow and contractual revenues position it well for sustained operations, but upcoming exploration outcomes will be key to maintaining momentum.
Questions in the middle?
- How will Legacy Iron Ore leverage its strong cash position to advance exploration or development?
- What are the long-term prospects and renewal terms of the Bain Global Resources agreements?
- How might the conclusion of the Brightstar infrastructure sharing deal impact operational costs going forward?