Legacy Iron Ore Reports $7.3M Quarterly Cash Outflow, Secures $22.5M Funding

Quarterly Cash Flow Overview

Legacy Iron Ore Limited’s December 2024 quarterly cash flow report reveals a challenging period marked by increased mining costs and sustained exploration expenditures. The company recorded a net cash outflow of $7.3 million from operating activities, reflecting the financial impact of a strategic cutback in the existing pit that temporarily raised mining expenses.

Exploration and evaluation outlays, classified under investing activities, added another $1.75 million to the cash outflows. These figures underscore the company’s ongoing commitment to advancing its resource base despite short-term cost pressures.

Capital Raise and Liquidity Position

In response to these financial demands, Legacy Iron Ore successfully raised approximately $22.5 million in November 2024. This capital injection has bolstered the company’s cash position to $15.3 million at the end of the quarter, providing a critical buffer to sustain operations and fund future activities.

The company estimates it has sufficient funding to cover approximately 1.7 quarters of current expenditure levels. Management anticipates that the elevated mining costs experienced during the quarter will not persist, expecting a reduction in expenses moving forward as operational efficiencies are realised.

Outlook and Operational Continuity

Legacy Iron Ore’s board remains confident in the company’s ability to continue its operations and meet business objectives. The combination of current cash reserves and ongoing revenue from gold sales underpins this outlook. However, the relatively short funding runway highlights the importance of prudent cash management and potential future capital initiatives.

Investors should watch closely how the company manages its cost base in the coming quarters and whether it can maintain or grow its revenue streams to extend its financial runway without further dilution.