Northern Minerals Burns $10M Operating Cash, Holds $49M in Reserves
Northern Minerals Limited reported a $10 million net operating cash outflow for the December 2025 quarter, ending with a robust cash balance of nearly $49 million supported by recent equity raises.
- Net operating cash outflow of $10.019 million for the quarter
- Year-to-date equity proceeds total $60.537 million
- Quarter-end cash and equivalents stand at $48.963 million
- Payments to related parties total $429,000
- Estimated funding runway of approximately 4.9 quarters
Quarterly Cash Flow Overview
Northern Minerals Limited has released its cash flow report for the quarter ending 31 December 2025, revealing a net operating cash outflow of $10.019 million. This outflow reflects ongoing expenditure across exploration, site maintenance, staff, and corporate costs, underscoring the company's active investment in its mineral exploration activities despite the cash burn.
The company’s year-to-date figures show equity proceeds of $60.537 million, which have significantly bolstered its cash position. At the end of the quarter, Northern Minerals held $48.963 million in cash and cash equivalents, a substantial increase from $17.478 million at the start of the period. This strong liquidity position provides a solid buffer to support ongoing operations and exploration programs.
Financing and Related Party Payments
Financing activities during the quarter resulted in a net cash outflow of $15.231 million, primarily due to repayments and transaction costs related to equity issues. Notably, no new borrowings or financing facilities were drawn down during this period, indicating a reliance on existing capital and equity funding.
Payments to related parties amounted to $429,000, covering director remuneration and legal fees paid to HFW, a firm associated with one of the directors. These payments were made on normal commercial terms and are consistent with standard corporate governance disclosures.
Funding Outlook and Operational Implications
With an estimated funding runway of approximately 4.89 quarters based on current cash reserves and expenditure levels, Northern Minerals appears well-positioned to continue its exploration activities without immediate need for additional capital. The company did not disclose plans for further fundraising or changes in operating cash flow, suggesting a steady operational outlook for the near term.
However, the sustained operating cash outflow highlights the capital-intensive nature of mineral exploration and the importance of maintaining strong liquidity. Investors will be watching closely for updates on project progress and any shifts in capital strategy that could impact future cash flow dynamics.
Bottom Line?
Northern Minerals’ solid cash reserves provide runway, but ongoing cash burn keeps funding strategy in focus.
Questions in the middle?
- Will Northern Minerals adjust its capital expenditure to reduce operating cash outflows?
- Are there plans to raise additional equity or debt financing in the near term?
- How will exploration results impact future cash flow and funding needs?
