Why Is SIV Capital Burning Cash Despite Holding $7.95M Amid ASX Suspension?
SIV Capital Limited posted a negative operating cash flow of $115,000 for the December quarter, maintaining a strong cash balance of nearly $8 million despite its securities suspension by ASX.
- Negative net cash flow from operating activities of $115,000 for Q2 FY26
- Cash and cash equivalents remain robust at $7.95 million
- No investing or financing cash flows recorded during the quarter
- Payments of $50,000 to related parties, primarily directors’ fees
- Securities remain suspended since December 2024 due to non-compliance with ASX Listing Rules
Quarterly Cash Flow Overview
SIV Capital Limited has released its Appendix 4C quarterly cash flow report for the period ending 31 December 2025, revealing a negative net cash flow from operating activities of $115,000 for the quarter and $225,000 for the half-year. Despite this operational cash outflow, the company holds a substantial cash reserve of $7.952 million, providing a buffer as it navigates ongoing challenges.
Operational and Financial Context
The company’s cash position remains stable with no reported investing or financing activities during the quarter, indicating a period of operational conservatism or strategic pause. Payments to related parties, amounting to $50,000, relate to directors’ fees, reflecting ongoing corporate governance costs despite the company’s suspended trading status.
ASX Suspension Status
SIV Capital’s securities have been suspended from quotation since 18 December 2024, following ASX’s determination that the company’s operations did not meet the requirements for continued listing. This suspension remains in place as the ASX awaits satisfactory compliance with Listing Rules 12.1 and 12.3. The company has not reported any operational changes since its last update at the Annual General Meeting in October 2025.
Looking Ahead
While the company continues to provide periodic disclosures to keep the market informed, the lack of operational progress or financing activity raises questions about its path to reinstatement on the ASX. The strong cash reserves may offer some runway, but the negative operating cash flow and prolonged suspension underscore the challenges ahead.
Bottom Line?
SIV Capital’s cash cushion offers breathing room, but the road to ASX reinstatement remains uncertain.
Questions in the middle?
- What specific steps is SIV Capital taking to address ASX’s compliance concerns?
- How long can the company sustain operations with its current cash burn rate?
- Are there plans to raise additional capital or restructure operations to regain listing status?
