Stavely Reports $1.593M Operating Cash Outflow, $2.67M Cash Balance End-2024
Stavely Minerals reported a $1.593 million net cash outflow for Q4 2024 but plans to reduce exploration expenditure in the coming quarter to preserve its $2.673 million cash balance.
- Net cash outflow of $1.593 million from operating activities in Q4 2024
- Cash and cash equivalents stood at $2.673 million at quarter-end
- Reduced exploration expenditure planned for March 2025 quarter
- No new borrowings; equity fundraising remains a monitored option
- Estimated funding runway of approximately 1.7 quarters at current spending levels
Quarterly Cash Flow Overview
Stavely Minerals Limited (ASX: SVY) has released its Appendix 5B cash flow report for the quarter ended 31 December 2024, revealing a net cash outflow of $1.593 million from operating activities. This outflow reflects ongoing exploration and evaluation costs, staff expenses, and corporate overheads typical for a mineral exploration entity in its development phase.
Despite the cash burn, the company ended the quarter with a healthy cash balance of $2.673 million, down slightly from $2.896 million at the previous quarter's close. The modest reduction underscores Stavely's disciplined cash management amid a challenging funding environment for junior explorers.
Strategic Response to Cash Position
Recognising the limited runway implied by current expenditure rates, approximately 1.68 quarters, the company has signalled a deliberate reduction in exploration spending for the March 2025 quarter. This move aims to extend its operational longevity while maintaining momentum on key projects.
Stavely's board continues to monitor the cash position closely and has indicated that future fundraising initiatives will be aligned with the progress and funding needs of its exploration programs. No new borrowings were drawn during the quarter, and the company remains free of debt, which provides some financial flexibility.
Operational and Financial Outlook
The company’s management has expressed confidence in its ability to continue operations and meet business objectives on the basis of reduced expenditure. However, the reliance on equity markets for additional capital introduces an element of uncertainty, particularly given the broader market conditions for mining exploration stocks.
Payments to related parties amounted to $221,000 during the quarter, consistent with prior periods and reflecting standard remuneration and service arrangements.
Contextualising Stavely’s Position
Stavely Minerals operates in a sector where cash flow volatility is common due to the capital-intensive nature of exploration and the long lead times before potential revenue generation. The company’s prudent approach to managing its cash reserves and adjusting exploration intensity is a pragmatic response to these challenges.
Investors will be watching closely for updates on fundraising efforts and exploration results, which will be critical in shaping Stavely’s trajectory in the coming quarters.
Bottom Line?
Stavely’s upcoming quarter will test its ability to balance exploration ambitions with financial discipline amid funding constraints.
Questions in the middle?
- What specific exploration projects will see reduced spending in the March 2025 quarter?
- How soon does Stavely plan to initiate new fundraising, and what form might it take?
- What impact will reduced exploration expenditure have on the company’s long-term growth prospects?
