Freehill Mining Reports AUD 382K Operating Cash Outflow Amid Production Issues
Freehill Mining Ltd reported a challenging quarter with cash outflows and operational setbacks but is planning a fundraising to support production ramp-up and a new copper project.
- Net cash used in operating activities of AUD 382,000
- Investing outflows of AUD 126,000 amid ongoing plant issues
- Financing inflows of AUD 482,000 partially offset cash burn
- Cash reserves at AUD 26,000 with total available funding of AUD 239,000
- Fundraising negotiations underway to support operations and new copper project
Quarterly Cash Flow Snapshot
Freehill Mining Ltd has released its quarterly cash flow report for the period ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 382,000. This was compounded by investing activities that consumed a further AUD 126,000, reflecting ongoing expenditures in exploration and evaluation. Despite these outflows, the company managed to secure AUD 482,000 from financing activities, providing some relief to its liquidity position.
Operational Challenges and Production Outlook
The company acknowledged several plant-related issues that have impacted production volumes and costs during the quarter. However, Freehill Mining is optimistic about a sales ramp-up and operational improvements in the current quarter, having invested heavily in stock to support anticipated demand. The management expects these efforts to translate into better production efficiency and cost management moving forward.
Liquidity Position and Funding Strategy
At quarter-end, Freehill Mining held just AUD 26,000 in cash and cash equivalents, supplemented by an unused financing facility of AUD 213,000, bringing total available funding to AUD 239,000. This funding covers only about 0.56 quarters of the company’s current cash outgoings, highlighting a tight liquidity runway. To address this, the company is actively negotiating a fundraising round aimed at bolstering its aggregate operations and advancing the optioning of a new copper project that has been under review.
Governance and Related Party Payments
The report also disclosed payments of AUD 62,000 to related parties, primarily director fees, consistent with standard corporate governance practices. The board has authorised the release of this report, affirming that the financial records have been properly maintained and that the report provides a true and fair view of the company’s cash flows.
Looking Ahead
While Freehill Mining faces immediate cash flow pressures and operational hurdles, its strategic focus on ramping up production and securing additional funding could mark a turning point. Investors will be watching closely to see if the anticipated improvements and fundraising efforts materialise as planned, which will be critical to sustaining the company’s operations and growth ambitions.
Bottom Line?
Freehill Mining’s near-term survival hinges on successful fundraising and operational turnaround.
Questions in the middle?
- What is the timeline and likelihood of closing the proposed fundraising?
- How quickly can operational issues be resolved to improve production and cash flow?
- What are the prospects and potential scale of the new copper project under option?
