NeuRizer has begun decommissioning plant at Leigh Creek for transport to Reliance Industries’ Indian underground coal gasification projects, while its cash position remains tight and its ASX suspension continues. The company ended September with $1.305 million in cash and estimated 1.4 quarters of funding on current outflows.
- Leigh Creek decommissioning work orders awarded for Reliance project
- Technology Services Agreement with Reliance substantially progressed but not yet executed
- $1.305 million cash at quarter end and 1.4 quarters of funding
- No additional capital raising expected for at least 12 months
- Two outstanding financial reports still required to lift ASX suspension
Leigh Creek equipment begins its journey to India
NeuRizer Ltd (ASX:NRZ) has moved its Reliance Industries project from signed agreements into physical execution, awarding work orders to decommission plant and equipment at Leigh Creek for transport to India. The company said it has also received approval from South Australia’s Department for Energy and Mining to begin dismantling the aboveground infrastructure.
The work sits beneath a broader package covering technology licensing and the sale of redundant Leigh Creek plant to Reliance, India’s largest company according to NeuRizer. The company’s Reliance technology and plant agreements were reported in September as a potential funding bridge, and NeuRizer now says a Technology Services Agreement has been substantially progressed, although it has not said the agreement has been executed.
Cash runway depends on Reliance arrangements
NeuRizer finished the September quarter with $1.305 million in cash after receiving $1.2 million from the disposal of property, plant and equipment. Operating cash use was $799,000, while the company spent a further $125,000 on exploration and evaluation activities and repaid $339,000 of borrowings.
On the ASX cash-flow test, those outflows leave estimated funding for 1.4 quarters, based on relevant quarterly outgoings of $924,000 and no unused finance facilities disclosed. NeuRizer answered yes to the required questions about continuing its current cash-flow profile, maintaining operations and meeting its objectives, citing its agreements with Reliance as the basis for expected funding.
That is a meaningful qualification to the company’s statement that it does not anticipate raising capital for at least 12 months. The filing does not quantify the future cash receipts from Reliance, and the additional project-management and operational-support agreements remain expected rather than signed. NeuRizer also said DL E&C has agreed to suspend enforcement of outstanding NRUP engineering, procurement and construction debt until at least 2028, giving the balance sheet more time but not removing the liability.
Trading suspension and environmental approval remain live issues
The company’s shares remain suspended under ASX Listing Rule 17.5. NeuRizer said it has published its 2024/25 annual report, but still needs to prepare an interim report for July to December 2025 and its 2025/26 annual report before the suspension can be lifted. The earlier ASX suspension and overdue reports therefore remain part of the investment case alongside the new India work.
At Leigh Creek, NeuRizer is also advancing the environmental impact statement for the power-production stage of its Urea Project. The Commonwealth environment department has responded to the latest submission with requests for additional information, which the company is preparing. The stage is still declared a Major Project in South Australia, but the filing supplies no timetable for a final environmental decision or for power production to begin.
Bottom Line?
The next proof point is not another broad Reliance update, but executed service agreements and identifiable cash receipts that can outlast NeuRizer’s 1.4-quarter standalone runway.
Questions in the middle?
- When will the Technology Services Agreement with Reliance be executed, and what cash commitments will it contain?
- Can the Leigh Creek decommissioning and equipment transport proceed without costs materially exceeding the company’s current cash capacity?
- When will NeuRizer lodge the two outstanding financial reports needed to address the ASX suspension?