Diablo Reports $14K Operating Outflow, $488K Exploration Spend in Q3
Diablo Resources reported a modest operating cash outflow and significant exploration spending in the September quarter, offset by a recent $2 million capital raise to support ongoing activities.
- Operating cash outflow of $14,000 for the quarter
- Investing cash outflow of $488,000 primarily on exploration
- Secured $100,000 unsecured loan at 10% interest
- Completed $2 million placement post-quarter
- Holds multiple US tenements, relinquished some in Nevada
Quarterly Cash Flow Overview
Diablo Resources Limited’s latest quarterly cash flow report reveals a cautious financial footing as the company continues to invest heavily in its exploration projects across the United States. The company recorded a net operating cash outflow of $14,000 for the September 2025 quarter, reflecting ongoing administrative and corporate costs.
More significantly, Diablo’s investing activities accounted for a cash outflow of $488,000, largely attributable to exploration and evaluation expenditures. This level of spending underscores the company’s commitment to advancing its mineral exploration programs despite near-term liquidity pressures.
Funding and Financing Moves
To support its operations, Diablo secured an unsecured working capital loan of $100,000 from Paranoid Enterprises Pty Ltd at an interest rate of 10% per annum, repayable within 90 days. This short-term facility provided some immediate relief but was not sufficient to cover the company’s total outgoings.
Recognising the need for more substantial funding, Diablo completed a $2 million placement shortly after the quarter ended by issuing 58.8 million shares at $0.034 each. This capital injection is expected to bolster the company’s cash reserves and enable continued exploration activities without immediate financial strain.
Tenement Portfolio Adjustments
During the quarter, Diablo maintained a diversified portfolio of tenements across Utah, Colorado, Nevada, and Idaho. Notably, the company acquired the PCC001-008 claim in Utah’s Phoenix Copper project while relinquishing several claims in Nevada’s Devil’s Canyon project. These portfolio adjustments suggest a strategic focus on areas with higher potential or more advanced exploration stages.
Liquidity Outlook and Operational Continuity
At quarter-end, Diablo held $124,000 in cash and cash equivalents, with no unused financing facilities available. The company estimates that its current funding covers approximately 0.3 quarters of operations, highlighting a tight liquidity position. However, management remains confident in its ability to raise further capital as needed, citing the recent placement as evidence of market support.
Diablo acknowledges that exploration spending is discretionary and fluctuates with project demands, which may influence future cash flow patterns. The board has indicated that ongoing funding initiatives will be pursued to ensure the company can meet its business objectives and continue its exploration programs.
Bottom Line?
Diablo’s recent capital raise provides a crucial lifeline, but sustaining exploration momentum will depend on successful funding execution and project progress.
Questions in the middle?
- What are the expected timelines and milestones for the newly acquired Phoenix Copper tenement?
- How will Diablo balance exploration spending with its limited cash runway in the coming quarters?
- What are the terms and conditions of the $2 million placement, and how might it affect shareholder dilution?
