Norwest’s Funding Runway Shrinks Below Two Quarters Amid High Activity
Norwest Minerals reported a cash outflow in the December 2025 quarter driven by an intensive drilling program, ending with A$1.64 million in cash. The company signals potential capital raising while maintaining confidence in ongoing operations.
- Net cash used in operating activities, A$216k
- Investing outflows mainly for exploration, A$1.008 million
- Cash balance declined to A$1.64 million from A$2.87 million
- No financing activities recorded during the quarter
- Payments to related parties totalled A$107k
Quarterly Cash Flow Overview
Norwest Minerals Limited has released its cash flow report for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of A$216,000. This outflow reflects an unusually high level of operational activity compared to previous quarters, primarily driven by an aggressive drilling campaign across its gold assets and the strategic elevation of the Dales Gossan silver-base metals discovery.
The company’s investing activities also saw significant cash outflows, amounting to A$1.008 million, largely allocated to exploration and evaluation efforts. These expenditures underscore Norwest’s commitment to advancing its mineral exploration projects despite the current cash burn.
Cash Position and Funding
At the end of the quarter, Norwest held A$1.642 million in cash and cash equivalents, down from A$2.866 million at the start of the period. The company did not record any financing activities during the quarter, indicating no new equity or debt was raised in this timeframe.
Management estimates the current cash reserves and funding provide approximately 1.34 quarters of runway at the current expenditure levels. While this is below the typical two-quarter threshold that investors often look for, the company has signalled that the heightened activity level is not expected to continue at the same pace.
Strategic Outlook and Capital Raising Plans
Norwest Minerals has acknowledged the need to potentially raise additional capital to sustain its operations beyond the near term. The company is exploring various options for capital raising and has committed to updating the market once any plans are finalised. Additionally, it retains the flexibility to reduce discretionary spending to conserve cash if necessary.
Payments to related parties, including director fees and consulting fees, totalled A$107,000 for the quarter, reflecting ongoing governance and operational costs.
Looking Ahead
Despite the cash outflows and funding runway below two quarters, Norwest’s board remains confident in the company’s ability to continue operations and meet its business objectives. The coming months will be critical as the company balances exploration progress with financial sustainability, and investors will be watching closely for updates on capital raising and drilling results.
Bottom Line?
Norwest Minerals faces a pivotal period balancing aggressive exploration with funding constraints, with capital raising developments set to shape its near-term trajectory.
Questions in the middle?
- What specific capital raising strategies is Norwest considering, and on what timeline?
- How will the results from the recent drilling campaign impact the company’s valuation and investor sentiment?
- Can Norwest sustainably reduce discretionary spending without compromising exploration momentum?
