Kalamazoo Reports $340k Quarterly Cash Outflow, Cash Reserves Drop to $284k
Kalamazoo Resources reported a $340,000 cash outflow for the December quarter, with cash reserves dwindling to $284,000. The company has since raised $8 million through a January placement and is pursuing further funds via a share purchase plan.
- Quarterly operating cash outflow of A$340k
- Cash and equivalents down to A$284k at quarter end
- Invested A$745k mainly in exploration and evaluation
- Raised A$8 million in January placement post-quarter
- Share purchase plan underway to bolster funding
Quarterly Cash Flow Overview
Kalamazoo Resources Limited (ASX, KZR) has disclosed its cash flow report for the quarter ending 31 December 2025, revealing a challenging liquidity position. The company recorded a net cash outflow from operating activities of A$340,000, driven largely by ongoing exploration and evaluation expenses. Cash and cash equivalents fell sharply to A$284,000 by the end of the quarter, down from A$1.375 million at the start.
Investment and Expenditure Focus
The mining exploration entity invested A$745,000 during the quarter, primarily in exploration and evaluation activities, underscoring its commitment to advancing its resource prospects despite the tight cash position. Administrative and corporate costs also contributed to the cash burn, alongside director fees amounting to A$146,000.
Capital Raising Efforts
In response to the liquidity squeeze, Kalamazoo successfully completed a placement in January 2026, raising A$8 million before costs. This capital injection is critical for sustaining operations and funding ongoing exploration programs. Additionally, the company has announced a share purchase plan aimed at raising further funds, signaling proactive steps to secure its financial footing.
Outlook and Operational Continuity
Despite the cash constraints reported in the December quarter, Kalamazoo’s board remains confident in the company’s ability to continue operations and meet business objectives. The recent capital raise and planned share purchase plan are expected to provide sufficient runway for the near term. However, the company’s cash runway was estimated at just 0.3 quarters at the end of December, highlighting the urgency of these funding initiatives.
No Borrowings or Financing Facilities Drawn
Notably, Kalamazoo did not draw on any borrowings or financing facilities during the quarter, relying instead on equity capital to fund its activities. This approach may reflect a cautious stance on debt amid the exploration phase, but it also places greater emphasis on successful equity raises to maintain liquidity.
Bottom Line?
Kalamazoo’s recent capital raise buys critical time, but upcoming funding rounds will be key to sustaining its exploration ambitions.
Questions in the middle?
- How will the share purchase plan impact Kalamazoo’s cash position and shareholder base?
- What are the company’s plans if further capital raising efforts fall short?
- How soon can investors expect updates on exploration progress funded by the new capital?
