Aguia’s Tight Cash Runway Raises Questions on Funding and Operations

Quarterly Cash Flow Overview

Aguia Resources Ltd has disclosed its cash flow report for the quarter ending 30 September 2025, revealing a net cash outflow from operating activities of AUD 2.03 million. This outflow reflects ongoing expenditures related to exploration, evaluation, and corporate costs. Investing activities also consumed AUD 2.22 million, primarily directed towards property, plant, equipment, and exploration efforts.

Despite these outflows, the company managed to secure AUD 5.34 million through financing activities, which included a capital raise and other financing transactions. This injection helped Aguia close the quarter with cash and cash equivalents of AUD 1.58 million, a notable increase from the previous quarter.

Capital Raising and Financing Initiatives

To strengthen its financial footing, Aguia is currently conducting a 1-for-10 entitlement offer aimed at raising up to AUD 4 million. This move is complemented by a recently secured AUD 1.7 million bank loan from the BRDE development bank, earmarked for advancing the Tres Estrades phosphate project. These financing efforts underscore the company’s proactive approach to funding its operations and growth initiatives.

Operational Outlook and Funding Runway

The company estimates its available funding will cover approximately 0.45 quarters based on current expenditure levels. However, Aguia remains optimistic about its near-term cash flow prospects, anticipating revenue inflows from gold sales at its Santa Barbara mine. The mine is scheduled to commence underground operations and processing of mineralised material shortly, which should provide a critical boost to cash generation.

Management also expressed confidence in its ability to raise additional capital as needed, citing a strong track record of successful equity and debt raises. This financial strategy is pivotal to sustaining operations and achieving business objectives amid a capital-intensive phase.

Investor Considerations

While the current cash runway is limited, Aguia’s combination of operational progress and active capital management offers a pathway to stability. Investors will be watching closely for the outcome of the entitlement offer, the ramp-up of production at Santa Barbara, and any further financing developments that could extend the company’s liquidity horizon.