Low Cash Reserves Pose Challenge as Native Mineral Resources Ramps Production

Quarterly Cash Flow Overview

Native Mineral Resources Holdings Limited (ASX, NMR) has released its quarterly cash flow report for the period ending 31 December 2025, revealing a net operating cash outflow of $675,000. This represents a significant improvement from the previous quarter's $3.16 million outflow, signalling early signs of financial stabilisation as the company advances its mining exploration activities.

Despite the improved operating cash flow, the company’s cash reserves stood at a precarious $11,000 at the end of the quarter. This low cash balance underscores the tight liquidity position Native Mineral Resources faces as it continues to invest heavily in exploration and evaluation, which accounted for $6.95 million in cash outflows during the quarter.

Financing and Funding Initiatives

To bolster its financial position, Native Mineral Resources secured $3 million through the issuance of convertible notes in January 2026, a move designed to provide a buffer against ongoing cash demands. This capital injection, alongside a $17.448 million loan facility provided by Collins St Convertible Notes Pty Limited, offers the company some breathing room. Notably, interest on this loan is capitalised for the first 14 months, deferring cash interest payments until February 2026.

The convertible notes raise is particularly timely, given the company’s estimated funding runway was just 0.02 quarters based on December quarter outgoings. The infusion of funds equates to nearly five times the net operating cash outflow for a quarter, significantly improving the company’s near-term liquidity outlook.

Operational Outlook and Production Ramp-Up

Native Mineral Resources has also reported encouraging operational developments. Following a record gold pour announced in late January 2026, the company has already received $6.5 million in cash receipts from gold and silver sales. This revenue inflow is expected to further ease cash flow pressures and support ongoing operations.

The company’s management remains confident in its ability to meet immediate financial obligations and continue its production ramp-up. The narrowing of the operating cash outflow and the recent capital raises suggest a turning point, although the sustainability of these improvements will depend on continued production success and prudent financial management.

Looking Ahead

While Native Mineral Resources is navigating a challenging liquidity environment, its recent financing activities and operational progress provide a cautiously optimistic outlook. Investors will be watching closely to see if the company can maintain this momentum and convert exploration potential into sustained cash flow generation.