NeuRizer has secured agreements worth AUD$12.7 million with Reliance Industries, offering a potential funding bridge for its coal-gasification technology. But the company’s FY2025 accounts show a larger loss, just $183,666 in year-end cash and a material dependence on continued funding and creditor support.
- AUD$12.7 million Reliance technology and plant agreements
- FY2025 loss widened to $5.95 million
- Only $183,666 cash held at 30 June 2025
- USD$32.8 million DL E&C principal debt remains outstanding
- Environmental approval process remains unresolved
Reliance deal offers funding bridge
NeuRizer Ltd (ASX:NRZ) now has a commercial lifeline, but not yet a clean balance sheet. The company has signed agreements with Reliance Industries worth AUD$12.7 million for exclusive use of its underground coal gasification technology in India and the sale of its Leigh Creek demonstration plant.
The Technology Transfer Agreement is valued at AUD$10.3 million, including an initial AUD$2.55 million milestone and monthly payments of AUD$516,667 for 15 months, while the Plant Purchase Agreement is worth AUD$2.4 million. NeuRizer says the first plant-sale milestone has been met and paid. A separate Technical Services Agreement for operational support in India remains in draft, so the headline contract value should not be treated as guaranteed revenue beyond the signed agreements.
Cash strain remains the central issue
The numbers in the FY2025 accounts explain why the Reliance agreements matter. NeuRizer reported a loss after tax of $5.95 million, up from $5.60 million a year earlier, while cash fell to $183,666 at 30 June 2025. Operating cash outflow was $1.42 million and net operating and investing cash outflow totalled $1.98 million.
Current liabilities exceeded current assets by $59.2 million at year-end. The company’s trade and other payables stood at $56.8 million, with the largest exposure tied to DL E&C. NeuRizer disclosed USD$32.8 million in principal owed to the engineering contractor, plus accrued interest that brought the total amount owing to USD$36.1 million, or AUD$55.0 million at the reporting date.
DL E&C standstill delays enforcement pressure
In July 2026, NeuRizer agreed repayment terms with DL E&C and secured a 24-month standstill on enforcement from 2 July 2026. Repayments begin at USD$40,000 a month, rising to USD$60,000 if the Reliance technical services agreement is executed and to USD$80,000 if proceeds are received from the sale of the company’s syngas generators.
The arrangement buys time rather than removing the debt. NeuRizer’s directors say the going-concern assessment depends on maintaining the standstill and on the continuation of the Reliance arrangements. The accounts explicitly warn that failure to secure sufficient funding would create a material uncertainty over the group’s ability to continue, with potential implications for the recoverability of its $125.5 million exploration and evaluation asset.
Environmental approval still has no timetable
The NeuRizer Urea Project remains tied to an unresolved Commonwealth environmental process. Stage 1 was classified as a controlled action under the EPBC Act, with the water trigger also applying. NeuRizer submitted its EIS response to DCCEEW in July 2026 and has since received supplementary questions, but the company says the approval process has no legislated timeframe.
The Reliance funding is intended to support ongoing groundwater and environmental monitoring at Leigh Creek, as well as dismantling the demonstration plant for shipment to India. At 30 June 2025, NeuRizer’s coal and syngas resource estimates were unchanged from prior statements, including 1,153 petajoules of quantified syngas resources across its Leigh Creek tenements. The next test is less geological than financial: whether milestone receipts, the draft services agreement and the debt standstill can carry the business through to a regulatory decision.
Bottom Line?
Reliance provides a potential route to cash generation, but NeuRizer remains exposed to contract continuity, milestone timing, debt repayments and an open-ended environmental approval process.
Questions in the middle?
- How quickly will NeuRizer receive the remaining Reliance milestone payments?
- Will the Technical Services Agreement with Reliance be finalised on terms that support the going-concern forecast?
- Can the company maintain the DL E&C standstill while funding the EIS process and its broader project plans?