A$24.96m cash and A$15.7m realised from Fitzroy’s royalty sales

Bowdens sale lifts Fitzroy’s cash balance

Fitzroy River Corporation Ltd (ASX:FZR) closed the September quarter with A$24.96 million in cash, helped by the monetisation of its Bowdens Silver royalty. The company received A$11.75 million during the quarter from the transaction, including GST, while the total realised consideration ultimately reached A$15.7 million after Fitzroy sold the Silver Mines shares it received as part of the deal. That outcome was detailed in the company’s Bowdens proceeds update, which reported the shares had been sold at an average A$0.11 each.

The original transaction carried gross consideration of A$17.5 million, comprising A$10 million in cash and A$7.5 million in Silver Mines shares. Fitzroy says it intends to distribute surplus proceeds to shareholders, although the latest quarterly report does not specify the amount or timing of any further distribution.

Weeks royalty receipts soften despite new Gippsland wells

Underlying royalty income was less buoyant. Fitzroy received A$201,698 relating to the June 2026 quarter, taking receipts from its Weeks royalty to A$581,349 for the 12 months to 30 September, down from A$619,145 in the prior corresponding period.

The royalty gives Fitzroy 1% of a 2.5% interest over hydrocarbons from the Gippsland Basin. Woodside Energy assumed operatorship from Esso Australia on 1 July and completed five offshore wells at the Turrum field, with the work designed to extend production from existing infrastructure and support east coast gas supply. The September-quarter royalty payment is expected in December.

Snowy River buyout remains before New Zealand court

The most consequential uncertainty sits with the Snowy River Gold Project in New Zealand. Fitzroy received A$12.265 million in March in connection with Endura Mining’s proposed exercise of an option to buy out Fitzroy’s royalty, but says it cannot establish whether that option was still valid when exercised. The payment remains in escrow.

Fitzroy has now commenced proceedings in the New Zealand High Court seeking declarations on the issue. If the court finds the buyout option had already lapsed after a “decision to mine” occurred in 2025, Fitzroy would retain its 1% to 3% overriding royalty under the royalty deed. The company says the continuing royalty could be materially more valuable than the buyout price, based on publicly available project information, but the outcome depends on the court process and the project’s eventual development.

Rafael project advances towards a 2027 investment decision

Fitzroy also retains exposure to Buru Energy’s Rafael Gas Project through royalties covering parts of the Canning Basin and Lennard Shelf. Buru released maiden proven and probable reserves, referred the project to Western Australia’s Environmental Protection Authority and submitted a production licence application during or after the quarter. Buru is targeting a final investment decision by June 2027, with potential cashflows described as beginning in late 2028 or early 2029 if development proceeds.

Quarterly cash outflows were modest at A$331,052, while cash inflows totalled A$12.095 million, including the Bowdens proceeds, Weeks royalty income and A$143,795 of bank interest. The balance sheet therefore looks materially stronger after the asset sale, but the recurring royalty stream remains relatively small and exposed to commodity prices, foreign exchange movements and interruptions to production. The next meaningful tests are the Snowy River court proceedings, the planned shareholder distribution and whether Rafael can move from approvals towards a funded investment decision.