Latitude 66 Ltd has strengthened its cash position through strategic asset sales and repaying a short-term loan, positioning itself for targeted exploration in Finland and Western Australia.
- Net cash used in operating activities of AUD 1.278 million for the quarter
- Received AUD 2.6 million from sale of non-core interests and shares
- Repaid unsecured short-term loan of AUD 750,000 with Argonaut Partners
- Cash and cash equivalents increased to AUD 1.001 million at quarter end
- Holds unrestricted shares in Carnaby Resources valued at approximately AUD 3.5 million
Quarterly Cash Flow Overview
Latitude 66 Ltd has reported its cash flow results for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 1.278 million. This reflects ongoing expenditure primarily related to exploration and corporate costs as the company advances its mining exploration projects.
Despite the operating cash outflow, Latitude 66's overall cash position improved significantly during the quarter, thanks largely to proceeds from the sale of non-core assets and shares. The company generated AUD 2.602 million in cash from investing activities, bolstering its liquidity.
Loan Repayment and Financial Position
In a notable move to strengthen its balance sheet, Latitude 66 repaid an unsecured short-term loan of AUD 750,000 to Argonaut Partners Pty Ltd, including interest payments of AUD 3,750. This repayment removes a financial liability and reduces interest expenses going forward.
At the end of the quarter, the company held cash and cash equivalents of AUD 1.001 million, more than doubling from the previous quarter's AUD 445,000. This improved cash reserve provides Latitude 66 with a buffer to fund its upcoming exploration activities.
Strategic Asset Sales and Funding Outlook
Latitude 66's cash inflows were supported by the sale of a non-core interest in the Greater Duchess project, completed in October, which yielded AUD 2 million in cash and unrestricted fully paid shares in Carnaby Resources Ltd valued at AUD 4 million. During the quarter, the company sold a portion of these shares, further enhancing its cash reserves.
At quarter end, Latitude 66 still holds Carnaby shares valued at approximately AUD 3.5 million, providing a valuable non-dilutive funding source. The company indicated that further sales of these shares post-quarter will support the advancement of its Finnish and Western Australian exploration assets.
Operational Continuity and Future Plans
Latitude 66 remains confident in its ability to continue operations and meet business objectives. The company plans to conduct targeted and cost-effective exploration activities funded from its working capital. Should additional funding be required, the board believes future capital raisings can be successfully executed.
This cautious but optimistic approach reflects Latitude 66’s commitment to maintaining financial discipline while advancing its exploration portfolio in key jurisdictions.
Bottom Line?
Latitude 66’s improved liquidity and strategic asset management set the stage for focused exploration, but future funding needs remain a watchpoint.
Questions in the middle?
- What is the timeline and budget for upcoming exploration activities in Finland and Western Australia?
- How will fluctuations in Carnaby Resources’ share price impact Latitude 66’s funding strategy?
- Are there plans for further debt financing or equity raises if exploration costs increase?