Diablo Resources Reports A$456k Operating Cash Burn, A$2M Equity Raised
Diablo Resources reported a net cash outflow of A$456k for operating activities in the December 2025 quarter, offset partially by a A$2 million equity raise. Despite this, the company’s cash runway remains limited to about one quarter, prompting plans for further funding.
- Net cash used in operating activities, A$456k for the quarter
- A$530k spent on exploration and evaluation activities
- Raised A$2 million through equity issuance during the quarter
- Cash and cash equivalents at quarter end, A$943k
- Estimated funding sufficient for approximately one quarter of operations
Quarterly Cash Flow Overview
Diablo Resources Limited has released its quarterly cash flow report for the period ending 31 December 2025, revealing a continued cash burn consistent with its exploration-focused business model. The company recorded a net cash outflow of A$456,000 from operating activities, primarily driven by administration and corporate costs, including ASIC and ASX fees, legal and accounting expenses.
Exploration and evaluation activities, a core focus for Diablo, accounted for a further A$530,000 in cash outflows during the quarter. These expenditures covered drilling, sampling, mapping, and claim staking across the company’s portfolio of tenements in Utah, Colorado, and Idaho.
Funding and Financial Position
To bolster its cash position, Diablo successfully raised A$2 million through equity issuance during the quarter. This capital injection helped offset the cash outflows, leaving the company with A$943,000 in cash and cash equivalents at the end of December.
However, the company’s estimated funding runway stands at just one quarter based on current expenditure levels. Diablo acknowledges the discretionary nature of exploration spending, which can fluctuate depending on project priorities and market conditions.
Strategic Outlook and Next Steps
With funding sufficient for only a short period, Diablo is actively considering various options to raise additional capital to sustain its operations. The board expressed confidence in the success of these initiatives but did not provide specific details or timelines.
The company’s portfolio remains focused on several key projects, including the Phoenix Copper, Lone Pine, and Star Range projects, with a new tenement acquired in the Star Range area during the quarter. These assets underpin Diablo’s exploration strategy as it seeks to advance its resource base.
Investors will be watching closely for updates on the company’s funding plans and exploration progress, which will be critical to maintaining momentum and delivering value.
Bottom Line?
Diablo Resources faces a critical funding juncture as it balances ongoing exploration costs with the need to secure fresh capital.
Questions in the middle?
- What specific funding options is Diablo Resources considering to extend its cash runway?
- How will exploration priorities shift if additional funding is delayed or limited?
- What progress has been made on the newly acquired Star Range tenement and its potential impact?
