Savannah Goldfields Limited reported a quarterly cash flow deficit but anticipates positive cash flow from resumed gold production and has extended its key loan facility to ease near-term pressures.
- Net cash used in operating activities of AUD 2.97 million for the quarter
- Investing outflows of AUD 0.88 million mainly on exploration and evaluation
- Financing inflows of AUD 3.53 million partially offset cash burn
- Loan facility maturity extended to March 2027 with reduced limit
- Company expects positive cash flow from resumed gold production and stockpile processing
Quarterly Cash Flow Overview
Savannah Goldfields Limited has disclosed its cash flow report for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 2.97 million. This outflow reflects ongoing costs associated with staff, administration, and exploration, despite the company having recommenced gold production in the prior quarter. Investing activities also contributed to cash outflows, with AUD 0.88 million spent primarily on exploration and evaluation efforts.
Financing and Liquidity Position
Partially offsetting these outflows, Savannah Goldfields reported net cash inflows of AUD 3.53 million from financing activities. The company holds loan facilities totaling AUD 9.8 million, of which AUD 2.3 million was drawn at quarter-end. Notably, the loan facility provided by Bizzell Nominees Pty Ltd, associated with the company’s Chairman, was undrawn at quarter-end and subsequently had its maturity extended to March 2027 with a reduced limit of AUD 2 million. This extension provides some breathing room for the company’s liquidity management.
Operational Outlook and Funding
Despite the current cash burn, Savannah Goldfields remains optimistic about its operational cash flow prospects. The company expects to generate material cash surpluses from ongoing mining and processing activities, including the processing of previously mined and stockpiled material. As of 30 January 2026, the company reported a cash balance of AUD 2.175 million, indicating some improvement since quarter-end.
The company also has an unused financing facility of AUD 7.5 million, which, combined with cash on hand, provides an estimated 2.12 quarters of funding based on current expenditure levels. Savannah Goldfields anticipates that proceeds from gold and silver sales in the current quarter will be sufficient to fund its operations without the immediate need for additional capital raises.
Debt Repayment and Risks
One area of concern remains the secured loan facility from Norfolk Enchants Pty Ltd, which carries a high interest rate of 20% per annum and is currently due for repayment. The company has made further principal and interest payments post-quarter and has an agreed repayment plan in place for the remaining balance of AUD 2.3 million. The ability to manage this debt effectively will be critical to maintaining financial stability.
Overall, Savannah Goldfields is navigating a transitional phase, balancing cash outflows with financing arrangements and the ramp-up of production activities. The next few quarters will be pivotal in demonstrating whether the company can convert its operational restart into sustained positive cash flow.
Bottom Line?
Savannah Goldfields’ extended loan facility and resumed production set the stage for a potential cash flow turnaround, but debt repayment remains a key challenge.
Questions in the middle?
- How quickly will gold production ramp-up translate into consistent positive cash flow?
- What is the company’s strategy for managing or refinancing the high-interest secured loan?
- Will proceeds from metal sales be sufficient to sustain operations without further capital raises?