ActivEX has eliminated its borrowings and reported a 310,000-ounce gold resource at Mt Hogan, but the balance sheet remains dependent on future funding. The ASX-listed explorer posted a $2.149 million loss after impairing exploration assets by $2.616 million.
- $2.149 million net loss for FY2026, more than double the prior-year loss
- $2.616 million impairment charge against exploration and evaluation assets
- Star Diamond debt extinguished through the transfer of East Coast Gold and Copper
- $1.7 million raised through placements, lifting shares on issue to 312.5 million
- 20.95% interest in Gilberton JV, which reported a 310,000-ounce Mt Hogan resource
Loss widens as exploration assets are written down
ActivEX Limited (ASX:AIV) has removed a $2.65 million debt burden from its balance sheet, but not the funding problem that comes with being a mineral explorer. The company reported a $2.149 million loss for the year ended 30 June 2026, more than twice the $1.037 million loss recorded a year earlier, after recognising $2.616 million in impairment losses on exploration and evaluation assets.
The impairment was dominated by the Esk Copper and Gold/Silver Project, whose carrying value was reduced by $2.569 million to $1.05 million based on the latest indicative offer for the tenement. ActivEX also recognised a $46,349 impairment on the Westgrove project because its exploration permit application remained subject to approval. A $1.231 million gain from the disposal of a subsidiary softened the result, but did not prevent the larger annual loss.
Debt disappears through asset transfer
ActivEX’s loan facility with Star Diamond Developments was fully discharged in March through the transfer of 100% of East Coast Gold and Copper, the subsidiary holding the Esk project. The transaction leaves ActivEX with no borrowings at 30 June, compared with $2.654 million of current borrowings a year earlier, and the company described the change as a material strengthening of its balance sheet.
That improvement came alongside a $1.7 million equity raising, completed through four placements involving 97.0 million shares before costs. Shares on issue rose from 215.5 million to 312.5 million, while cash increased to $668,951. Operating activities nevertheless consumed $519,137 during the year, and the annual report says further exploration or corporate spending over the next 12 months will require additional funding through equity, borrowings, farm-outs or asset sales.
Mt Hogan resource anchors the exploration portfolio
The strongest asset headline is coming from ActivEX’s 20.95% interest in the Gilberton Gold joint venture, rather than from a wholly owned project. The JV has delineated a JORC-compliant inferred resource at Mt Hogan of 8.5 million tonnes grading 1.13 grams per tonne gold for 310,000 ounces at a 0.3 grams per tonne cut-off. Gilberton Gold is the operator and further drilling is proposed around the historic Mt Hogan mine, subject to funding and scheduling.
ActivEX is also advancing a spread of earlier-stage targets. At Georgetown, the company cites rock-chip results of up to 16.15 grams per tonne gold, 1,185 grams per tonne silver and lead values between 32.3% and 57.1% at the Potosi prospect, with pXRF work, induced-polarisation surveys and targeted drilling planned. At Aramac, reconnaissance sampling across a 15-kilometre strike returned a maximum TREO result of 2,794 parts per million, alongside elevated zinc, cobalt, barium and manganese in underlying sediments. Aircore drilling is planned to test both rare-earth and base-metal targets.
Going concern warning puts the cash runway first
The directors continue to prepare the accounts on a going-concern basis, but explicitly acknowledge a material uncertainty that may cast significant doubt on ActivEX’s ability to continue. The company has $691,065 in current assets against $76,968 in current liabilities, yet its exploration commitments total $1.933 million, and its operating model requires recurring capital raisings or transactions involving its projects.
Westgrove adds another near-term dependency: the Doonkuna application has progressed through native-title consultation and an access agreement, but the tenement still requires government approval. Until that grant, and until the planned drilling programs generate results that can support a larger resource or transaction, ActivEX’s cleaner balance sheet remains a useful reset rather than evidence of financial self-sufficiency.
Bottom Line?
The debt-free balance sheet removes an immediate liability, but ActivEX still needs fresh capital or project-level funding to turn its exploration targets into a sustainable pipeline.
Questions in the middle?
- How much cash will ActivEX need to raise before the next round of drilling begins?
- Can Gilberton Gold secure the funding required for the proposed Mt Hogan drilling program?
- Will Westgrove receive its tenement grant, and will Aramac’s planned aircore drilling confirm mineralisation at scale?