A$1.56 million cash leaves Altamin with 1.41 quarters of funding

Lazio Study Moves Into 2027

Altamin Limited (ASX:AZI) has finished the major technical work for its Lazio geothermal brine project, but the study investors have been waiting for will arrive later than previously indicated. The company now expects to release the Scoping Study before the end of Q1 2027, after previously targeting the second half of 2026.

Altamin said the draft study is substantially compiled and that the extra time will allow development configuration options to be optimised before final Competent Person and Board review. Those options include positioning the project for future exploration and potential expansion. The delay therefore sits alongside genuine technical progress, rather than a report of unfinished core work, but it pushes a key valuation milestone further into the next calendar year.

The update follows September Lazio study progress, when the company had said the Scoping Study was expected in Q4 2026 and auditors had flagged uncertainty around future funding.

Funding Covers Little More Than One Quarter

The financial position is the sharper part of the report. Altamin held A$1.562 million in cash at 30 September after using A$1.812 million during the quarter on operating outgoings, including A$1.665 million on exploration and evaluation. It also had A$1 million of undrawn capacity under its financing arrangements, producing total available funding of A$2.562 million and an estimated 1.41 quarters of coverage at the reported spending rate.

That calculation is not a guaranteed operating life. Altamin said it expects the current level of net operating cash flow to continue into the next quarter because of time-specific payments, while pointing to several possible funding sources: the remaining capacity in its loan facility, up to A$950,000 in expected refundable grant costs, a potential sale of an interest in Gorno and a possible equity raising. The company said successful outcomes from those steps would support continued operations and its medium-term objectives.

Shareholder-Linked Loan Now Partly Drawn

Altamin drew A$1 million during the quarter from the A$2 million unsecured facility provided by Vilo Finance, an entity controlled by major shareholder Victor Smorgon Group. The facility carries interest of 12% a year, a 1% establishment fee and a 4% annual fee on undrawn funds, with interest and fees capitalised. It may be increased by up to a further A$1 million if both parties agree.

The arrangement is non-dilutive in the immediate sense, but it is not cheap funding and must be repaid by 30 September 2027 or from the net proceeds of any entitlement offer during the facility term. The A$2 million shareholder loan had previously been described as support for the Lazio and Gorno projects and working capital.

Pilot Plant Design and Permitting Pipeline

At Lazio, Altamin, RINA and the University of L’Aquila have completed the design and equipment selection for a pilot plant under the BRAIN research initiative. The plant is intended to test a process combining sulphate of potash, lithium and boron production from Cesano geothermal brines, with construction and design funded through an Italian government grant. Equipment orders are expected to follow.

The next development steps include environmental and permit applications for brine extraction and reinjection boreholes, low-cost geophysical work and two exploration holes into the Cesano reservoir. The holes are intended to provide live brine samples and reservoir flow data, and could potentially be used later as production and reinjection wells if successful. Drilling remains dependent on the future environmental impact assessment and integrated permit process.

Gorno Process Awaits Licence Decision

Altamin kept its Gorno polymetallic project in good standing through water and environmental monitoring, while lodging a technical report supporting the extension and merger of its Cime and Cime 2 exploration licences. Argent Partners continued engaging interested parties and conducting due diligence as part of a strategic process.

The company said progress had been made towards satisfying conditions attached to the retrospective environmental approval, and expects the licence extensions to be approved in the near term. It also made clear that the strategic process may not produce a transaction, leaving retention and further development of Gorno as the alternative. The Gorno environmental approval had previously strengthened the project's regulatory footing and strategic options.

Altamin has also refreshed its board and management structure, appointing Aviv Kirshenbaum as an independent non-executive director after Stephen Hills stepped down as director, chief financial officer and company secretary. Henko Vos and Catherine Earlie became joint company secretaries from 1 October.