Freehill Mining Reports AUD 304k Operating Cash Outflow in Q3 2025
Freehill Mining Ltd reported a challenging quarter with significant cash outflows and limited liquidity, but anticipates revenue growth from its Chilean operations supported by a recent equity raise.
- Net cash used in operating activities of AUD 304k for the quarter
- Investing activities consumed AUD 127k, financing activities used AUD 85k
- Cash and cash equivalents stood at AUD 50k at quarter end
- Estimated funding available for only 0.16 quarters
- Post-quarter equity raise of AUD 540k planned to support Chilean operations
Quarterly Cash Flow Overview
Freehill Mining Ltd has disclosed its cash flow report for the quarter ending 30 September 2025, revealing a cash-strapped position with net cash used in operating activities amounting to AUD 304,000. The company also reported cash outflows of AUD 127,000 in investing activities and AUD 85,000 in financing activities, leaving it with just AUD 50,000 in cash and equivalents at the end of the period.
This tight liquidity situation translates to an estimated funding runway of only 0.16 quarters, underscoring the immediate financial pressures facing the mining exploration company.
Operational Challenges and Strategic Outlook
Despite the constrained cash position, Freehill Mining is optimistic about its near-term prospects. The company highlighted that recent leases entered into for its Chilean operations are expected to drive increased revenues and improved margins as it moves into full operational status. This shift is anticipated to bring more consistent sales and volume growth, particularly through supplying primary feedstocks to the cement industry, a key market segment.
Over the past year, Freehill has been navigating a customer project cycle that has impacted cash flow consistency. The relocation of its processing plant to a major construction hub in Chile is seen as a strategic move to stabilise and grow its revenue base.
Funding Measures and Governance
To address its funding shortfall, Freehill Mining has taken steps post-quarter to raise additional capital. The company issued 103.75 million fully paid ordinary shares, raising approximately AUD 415,000 before costs. Additionally, the chairman is set to participate in the placement with a further 31.25 million shares, expected to raise AUD 125,000, subject to shareholder approval at the upcoming annual general meeting scheduled for 28 November 2025.
During the quarter, the company also paid AUD 42,000 in directors’ fees, reflecting ongoing governance costs amid operational ramp-up.
Looking Ahead
While Freehill Mining’s current liquidity position is precarious, the company’s confidence in its Chilean operations and the recent equity raise provide a foundation for continued operations and pursuit of business objectives. Investors will be watching closely to see if the operational improvements translate into stronger cash flows and whether shareholder approval for the equity issuance is secured.
Bottom Line?
Freehill Mining’s near-term survival hinges on operational ramp-up in Chile and successful equity funding.
Questions in the middle?
- Will the anticipated revenue growth from Chilean operations materialize as projected?
- What are the risks if shareholder approval for the equity raise is delayed or denied?
- How will Freehill manage cash flow if operational improvements take longer than expected?
