Everest Metals Corporation Ltd reported a cautious quarterly cash flow with net outflows from operations and investing, while securing a significant $18.6 million financing facility for its Mt Dimer project development.
- Net cash used in operating activities – AUD 126,000
- Investing cash outflows total AUD 850,000
- Financing cash outflows of AUD 258,000
- Cash and cash equivalents at quarter end – AUD 3.79 million
- $18.6 million Right to Mine Agreement financing secured for Mt Dimer
Quarterly Cash Flow Overview
Everest Metals Corporation Ltd has released its cash flow report for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 126,000 and a more substantial cash outflow of AUD 850,000 from investing activities. These figures reflect ongoing expenditures related to exploration and evaluation, consistent with the company's focus on advancing its mining projects.
Despite these outflows, Everest Metals ended the quarter with a healthy cash balance of AUD 3.79 million, down from AUD 5.02 million at the start of the period. Financing activities contributed a net cash outflow of AUD 258,000, indicating some repayment or costs associated with financing during the quarter.
Strategic Financing for Mt Dimer Development
A key highlight of the quarter is the company's fully integrated Right to Mine Agreement (RTMA) and Specific Security Deed with Bain Global Resources and its subsidiary MEGA Resources. This agreement provides up to AUD 18.6 million in financing for the development and working capital of the Mt Dimer project. Notably, this funding is provided at no interest and is recoverable solely from project revenues, with profits to be shared equally between Everest Metals and MEGA Resources.
While this financing facility is significant, it is important to note that drawdowns require joint approval and are not reflected in Everest Metals' cash flows except for distributions received. This arrangement offers the company a substantial financial runway for Mt Dimer without immediate dilution or interest burden, but also ties future cash flows to project performance.
Liquidity and Operational Outlook
Based on current expenditure rates, Everest Metals estimates it has approximately 3.9 quarters of funding available, combining cash reserves and relevant outgoings. This suggests a moderate runway to continue exploration and development activities without immediate need for additional capital raising.
The company’s payments to related parties during the quarter were modest, totaling AUD 79,000 for operating activities and AUD 44,000 for investing activities, reflecting ongoing corporate and exploration support.
Overall, Everest Metals appears positioned to advance its Mt Dimer project with the backing of its strategic financing partner, though the company will need to manage cash flows carefully as it progresses towards production and revenue generation.
Bottom Line?
Everest Metals’ strategic financing deal underpins Mt Dimer’s development, but cash flow discipline remains critical as the project advances.
Questions in the middle?
- When will Everest Metals begin drawing on the $18.6 million financing facility?
- What are the expected timelines and milestones for Mt Dimer’s development and production?
- How will profit sharing with MEGA Resources impact Everest Metals’ future cash flows and earnings?