ASF Group Faces Cash Burn but Eyes Growth in Mining, Tech, and Biotech

ASF Group’s Financial Position

ASF Group Limited (ASX, AFA) reported a closing cash balance of approximately $1.91 million as at 31 December 2025, reflecting a net operating cash outflow of $484,000 for the quarter. Despite the cash burn, the Group maintains a solid funding runway estimated at nearly four quarters based on current cash and operating cash flow trends. No new financing facilities were drawn during the period, underscoring a cautious approach to capital management.

Investment Highlights, Mining and Energy

Key investments remain central to ASF’s diversified portfolio. The Group holds a 13.53% stake in ActivEX Limited, an ASX-listed mineral explorer focused on copper, gold, and critical minerals in Queensland. ActivEX recently completed a 5,000-metre reverse circulation drilling program aimed at expanding the Mineral Resource Estimate at the Mt Hogan project, part of the Gilberton Gold Project. The company also completed two equity placements totaling $900,000 during the quarter, strengthening its capital base.

ASF also holds a 7.99% interest in Key Petroleum Limited, which operates oil and gas exploration assets in the Cooper Eromanga Basin. These assets are strategically located near established oil fields and infrastructure, positioning Key Petroleum to potentially benefit from ongoing energy demand in Queensland.

Subsidiary Developments, Coal, Technology, and Biotech

ASF’s wholly owned subsidiary, ASF Coking Coal Pty Ltd, oversees nine coal tenements in Queensland. A recent conceptual review by Geos Mining highlighted EPC 2386 as having moderate to significant potential for metallurgical coal, with other tenements showing varying degrees of prospectivity. Further exploration will be needed to confirm economic viability.

On the technology front, ASF Technologies (Australia) Pty Ltd is advancing a patented flat opposed cylinder boxer-type engine featuring Scotch Yoke mechanisms. This engine boasts advantages in emissions, size, and durability, meeting stringent Euro 6d and China 6b standards without costly add-on technologies. The engine’s fuel flexibility and recent patent grants in the US and Europe position it well for hybrid and range extender vehicle markets, as well as other power applications.

In biotech, ASF’s subsidiary BSF Enterprise PLC continues to innovate in cell-based tissue engineering, with projects spanning lab-grown leather, cultivated meat, and corneal repair. Recent commercial agreements and a conditional equity fundraise aiming to raise up to £15 million underscore the company’s momentum in this cutting-edge sector.

Emerging Financial Services Initiatives

ASF Capital Pty Ltd, the Group’s fund management arm, achieved registration as a Digital Currency Exchange service provider with AUSTRAC during the quarter. While no trading or exchange services have commenced, the Group is monitoring regulatory developments closely and has authorised preliminary planning activities, signalling a measured approach to entering the digital assets space.

Outlook and Strategic Focus

ASF Group’s diversified holdings across mining, energy, technology, biotech, and financial services reflect a broad strategy to generate value through transnational trade and investment. The Group’s current cash position and funding runway provide a buffer to support ongoing operations and investment activities. However, the pace of commercialisation for its technology and biotech assets, as well as the outcomes of exploration programs, will be critical to watch in coming quarters.