A$1.145m profit masks A$5.889m operating cash outflow at Noronex

Profit turnaround rests on asset disposals

Noronex Limited (ASX:NRX) has reported a profit, but not yet the kind that pays the exploration bills. The Namibia and Botswana-focused explorer recorded a A$1.145 million net profit after tax for the year ended 30 June 2026, reversing a A$3.137 million loss a year earlier. The central driver was a A$2.311 million gain on the sale and partial disposal of tenement assets, rather than revenue from mining operations.

Noronex’s underlying exploration model remains firmly pre-production. Interest revenue was just A$1,035 and sundry income was A$545,606, while exploration expenditure expensed during the year reached A$736,246. The accounting profit therefore says more about portfolio reshaping than about a new recurring earnings stream.

Cash outflow creates the sharper investor question

The cash figures are less forgiving. Net cash used in operating activities rose to A$5.889 million from A$3.682 million, including A$4.936 million spent on exploration. South32 farm-in funding contributed A$4.2 million during the year, while Noronex raised a further A$850,000 through the issue of 60.7 million shares.

That left A$1.413 million in cash and cash equivalents at 30 June, alongside A$3.929 million of disclosed tenement expenditure commitments. The annual report says the directors believe forecast cash will be sufficient, but the auditor drew attention to a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern if further funding cannot be secured. The report itself states that continued exploration depends on access to equity markets and that additional equity may dilute existing shareholders.

Alaska adds a new exploration front

Noronex is now adding tin to its copper and uranium portfolio. After year end, it entered an agreement to acquire Alaskan Critical Minerals, which holds rights to acquire Strongbow Alaska and the Sleitat Tin-Tungsten-Silver Project. Shareholder approval was obtained on 4 September 2026, the options were exercised, and the parties were proceeding towards settlement at the date of the report.

Noronex has begun a modern exploration program at Sleitat, including about 250 line-kilometres of helicopter-borne magnetic and radiometric surveying, geological mapping, surface sampling and a review of roughly 1,400 metres of historical drill core. Historical drilling included an intercept of 29.1 metres at 1.56% tin and 28 grams per tonne silver, including 3.1 metres at 12.55% tin and 198 grams per tonne silver. The company is targeting a maiden JORC Exploration Target in the December 2026 quarter, with drilling dependent on exploration results, permitting, access, funding and board approval.

South32 partnership continues, while dilution builds

South32 remains the financial partner behind Noronex’s Kalahari Copper Belt strategy. The company held approximately 10,398 square kilometres across Namibia and Botswana at year end, with South32 able to earn 60% of the Humpback-Damara project by spending A$15 million and 60% of the Cgae Cgae project by spending A$5 million. For the next 12-month program, the parties agreed to minimum combined expenditure of A$2 million while work remains focused on generating drill-ready targets.

The post-year-end transaction activity materially changes the capital structure. Noronex reported 638.1 million shares on issue at 30 June, but ASX additional information recorded 740.5 million shares as at 17 September after Sleitat settlement shares, facilitation issues and performance-right conversions. The company also issued or recorded substantial option and performance-right packages, while 72.9 million listed options expired unexercised in August. James Thompson was appointed CEO after year end, following Victor Rajasooriar’s resignation as managing director on 31 May.