Orion Minerals Reports A$2.87M Operating Outflow, Raises A$9.11M Financing

Quarterly Cash Flow Overview

Orion Minerals Ltd’s December 2025 quarterly cash flow report reveals a company navigating the challenging waters of mining project development with a mix of cash outflows and strategic financing. The quarter saw net cash used in operating activities of A$2.87 million and investing activities outflows of A$1.28 million, reflecting ongoing exploration and evaluation efforts. However, these outflows were more than offset by financing activities, which injected A$9.11 million into the company’s coffers, lifting cash and cash equivalents to A$5.74 million by quarter’s end.

Loan Facilities and Funding Structure

Orion’s financing position is underpinned by fully drawn loan facilities totaling over A$40 million. Central to this is a senior secured convertible loan facility of approximately ZAR250 million (around A$30.5 million) provided by the Industrial Development Corporation (IDC) of South Africa. This loan supports early mining works and pre-development activities at the Prieska Copper Zinc Mine, with conversion to equity possible upon positive project milestones. Additionally, a A$10 million early funding arrangement with Triple Flag is in place, secured against future mineral sales revenue.

Strategic Partnerships and Equity Movements

The quarter also saw progress in equity partnerships, notably the inclusion of Landmark Capital Investments as a 20% shareholder in New Okiep Mining Company, part of the Flat Mines Project. This follows IDC’s acquisition of a significant stake and reflects Orion’s commitment to historically disadvantaged South African partners. These moves not only strengthen local ties but also diversify the company’s shareholder base, potentially smoothing future project development.

Outlook and Funding Prospects

Despite having only 1.41 quarters of funding available based on current cash burn, Orion remains confident in its operational continuity. The company has secured additional IDC funding post-quarter and is actively advancing financing and concentrate offtake arrangements with Glencore, targeting US$200-250 million. These initiatives are critical to sustaining development momentum and meeting business objectives, though their timing and success remain key variables.

Investor Considerations

Orion’s cash flow dynamics and financing arrangements highlight the typical capital-intensive nature of base metals mining development. The convertible loan’s potential equity conversion could dilute existing shareholders but also reduce debt burden. Meanwhile, the reliance on large-scale external funding underscores the importance of successful negotiations with Glencore and other partners to secure long-term project viability.