Antares Metals Faces Cash Burn but Raises Funds to Sustain Exploration
Antares Metals reported a cash outflow in operating activities for Q2 2025 but bolstered its balance sheet with a $1 million placement, positioning itself for focused exploration in Western Australia.
- Net cash used in operating activities of A$617k for the quarter
- Investing activities consumed A$89k, primarily on new tenements
- Financing activities generated A$957k, including a planned $1 million placement
- Cash and equivalents rose to A$1.05 million at quarter end
- Operational focus shifting to Quinns and Katanning tenements in Western Australia
Quarterly Cash Flow Overview
Antares Metals Limited has released its quarterly cash flow report for the period ending 31 December 2025, revealing a net cash outflow from operating activities of A$617,000. This reflects ongoing expenditure primarily related to exploration and evaluation, with staff costs and administration expenses also contributing to the cash burn. Despite this, the company managed to maintain a solid cash position, ending the quarter with A$1.05 million in cash and cash equivalents.
Investing and Financing Activities
Investing activities during the quarter saw a modest outflow of A$89,000, mainly attributable to payments for acquiring new tenements, specifically the Quinns and Katanning projects in Western Australia. This strategic move signals Antares Metals’ intent to pivot its exploration focus towards these promising areas.
On the financing front, the company generated A$957,000 in net cash inflows. This includes proceeds from a two-tranche placement, with the second tranche scheduled to settle in late January 2026, expected to raise approximately A$1 million before costs. This capital injection is critical for sustaining Antares Metals’ exploration activities and operational objectives in the near term.
Operational Outlook and Strategic Focus
Looking ahead, Antares Metals anticipates a slowdown in field activities in North Queensland due to environmental conditions. Instead, the company plans to concentrate its efforts on the newly acquired tenements in Western Australia, which may offer more favourable exploration opportunities. The management expects to maintain its current level of net operating cash flows over the coming quarter, supported by the recent capital raise.
The company’s board remains confident in its ability to continue operations and meet its business objectives, underpinned by the strengthened cash position and strategic realignment of exploration activities.
Bottom Line?
With fresh capital secured and a clear strategic pivot, Antares Metals is poised to advance its Western Australian projects while managing cash flow pressures.
Questions in the middle?
- How will exploration results from the Quinns and Katanning tenements influence Antares Metals’ valuation?
- What impact will environmental conditions in North Queensland have on the company’s longer-term operational plans?
- Will the planned $1 million placement fully cover upcoming exploration and administrative costs?
