Minbos Resources Eyes $1M Capital Raise Amid Tight Cash Flow
Minbos Resources Limited reported a challenging quarter with significant cash outflows but plans a $1 million share purchase plan to bolster its funding position.
- Net cash used in operating activities of A$1.862 million
- Investing activities consumed A$2.55 million in the quarter
- Financing activities provided a net inflow of A$7.834 million
- Cash and equivalents stood at A$2.29 million at quarter-end
- Share Purchase Plan planned for February 2026 to raise approximately A$1 million
Quarterly Cash Flow Overview
Minbos Resources Limited has released its quarterly cash flow report for the period ending 31 December 2025, revealing a mixed financial picture. The company recorded net cash outflows of A$1.862 million from operating activities, reflecting ongoing expenditure related to exploration and corporate costs. Investing activities further drained cash by A$2.55 million, primarily due to payments for exploration and evaluation.
Despite these outflows, Minbos managed to secure a net inflow of A$7.834 million from financing activities, which helped maintain a cash balance of A$2.29 million at the end of the quarter. This inflow was partly driven by proceeds from equity-related transactions and loans, underscoring the company’s reliance on external funding to support its operations.
Funding Position and Future Plans
With an estimated 1.2 quarters of funding available based on current cash and outgoings, Minbos acknowledges the need to strengthen its financial runway. The company has outlined plans to launch a Share Purchase Plan (SPP) in February 2026, targeting a raise of approximately A$1 million. Additionally, shareholder approval is sought for director participation in a recent placement, which could unlock a further A$300,000.
Management remains confident in the company’s ability to continue operations and meet business objectives, citing current funding strategies and cash flow forecasts. The company expects to maintain its current level of net operating cash flows for the foreseeable future, supported by these planned capital raising initiatives.
Operational and Governance Notes
During the quarter, payments to related parties amounted to approximately A$191,000, including director fees and management services. Minbos Resources has not reported any new financing facilities or borrowings, indicating a focus on equity-based funding rather than debt.
The company’s cash flow report has been prepared in accordance with Australian Accounting Standards and provides a transparent view of its financial position. The board has authorised the release of this report, affirming its compliance with regulatory requirements and internal controls.
Looking Ahead
Minbos Resources is navigating the typical challenges faced by exploration companies balancing cash burn with the need to advance projects. The upcoming Share Purchase Plan and shareholder meeting will be critical milestones to watch, as they will determine the company’s near-term liquidity and operational stability.
Bottom Line?
Minbos must successfully execute its capital raising plans to sustain momentum in a cash-tight environment.
Questions in the middle?
- Will the Share Purchase Plan meet its $1 million target and how will funds be allocated?
- What are the longer-term funding strategies beyond the next 1.2 quarters?
- How will ongoing exploration activities be balanced against cash constraints?
