A$4.647 million cash and 3.76 quarters of funding at Latitude 66

Asset sales lift Latitude 66 cash balance

Latitude 66 Limited (ASX:LAT) finished the September quarter with A$4.647 million in cash, but the balance was built largely through selling assets rather than operating income. Investing activities generated A$4.448 million, including A$3.4 million from royalty disposals and A$1.048 million from investment disposals.

The company’s operating cash outflow was A$1.235 million, comprising A$762,000 spent on exploration and evaluation and A$475,000 on administration and corporate costs. With no debt or available financing facilities, the Appendix 5B calculates funding of 3.76 quarters based on that quarter’s relevant outgoings. That is a snapshot rather than a forecast: exploration spending is likely to vary as drilling and studies progress.

KSB moves from study economics to drilling

“KSB Project area showing existing and new granted Exploration Permit areas.”

The cash position arrives as Latitude 66 advances its Finnish Kuusamo Schist Belt project. The company received four exploration permits covering the K1, K2 and K3 deposits, securing tenure for drilling, geophysical work, environmental baseline studies and related technical investigations. The first phase of the project’s Environmental Impact Assessment has also been completed, with guidance now issued for the second phase.

The KSB scoping study outlined a potential 7.5-year standalone open-pit and underground operation targeting average annual production of 65,000 ounces of gold and 475 tonnes of cobalt in concentrate. It estimated US$130 million of capital expenditure and a base-case post-tax NPV8 of US$485 million at a gold price of US$3,500 an ounce. Those figures remain study-stage estimates, and the company says development timing is not yet determined and depends on ongoing funding.

“Long section of K1 Mineral Resource showing Electromagnetic (EM) conductor plates and targeted plate intersection points.”

Latitude 66 has now started a 2,500-metre diamond drilling program at K1 after identifying a conductor outside the current resource envelope. FLEM and downhole electromagnetic modelling traced the conductor for about 320 metres along strike and up to 650 metres down dip, while historical drilling around its margins included a 5.6-metre intersection grading 7.3 grams per tonne gold. The anomaly is a drill target, not a resource addition; its significance will depend on the results of the new program.

Laverton resource adds a second development thread

In Western Australia, Latitude 66 reported a combined 339,000-ounce Mineral Resource at its Laverton project, comprising a maiden 309,000-ounce estimate at Tin Dog and an updated 30,000-ounce estimate at Red Dog. The inventory totals 10.7 million tonnes at 1.0 grams per tonne gold, with 40% classified as Indicated and 60% Inferred.

“Cross-section B-B’ (6,748,750mN +/- 70m) looking north through the Tin Dog Resource – All blocks > 0.6g/t Au displayed.”

Caption and image © Latitude 66 Limited. From “Quarterly Activities Report”, 27 Oct 2026.

The company says the resource was generated after 6,451 metres of reverse-circulation drilling and cost approximately A$2.61 per resource ounce. Granted mining leases and several processing facilities within 100 kilometres provide potential development options, although the filing does not establish an operating plan or funding pathway for Laverton. Alongside the 339,000-ounce Laverton resource, Latitude 66 is also pursuing extensions at Tin Dog, Red Dog and other targets.

Cash runway now meets a larger work program

Latitude 66’s quarter therefore presents a mixed financial picture. The company has materially more cash than at June’s A$1.494 million closing balance, helped by the royalty portfolio sale, but its funding calculation rests on one-off asset realisations and a relatively quiet cash period before the latest drilling campaign began. The next quarterly report should show whether KSB drilling and pre-feasibility work materially increase the burn rate, and whether further disposals or external funding become necessary.