Infinity Mining Reports A$222K Operating Cash Outflow, Raises Equity to Boost Liquidity
Infinity Mining Limited reported a challenging quarter with net cash outflows from operations and investing, but bolstered its liquidity through a $1.87 million equity raise and plans to divest Western Australian projects.
- Net cash used in operating activities of A$222,000 for the quarter
- Net cash used in investing activities of A$368,000
- Raised A$1.868 million from equity issues during the quarter
- Pro-rata non-renounceable option offer underway to raise approximately A$282,010
- Plans to divest Western Australian assets to reduce costs and improve liquidity
Quarterly Cash Flow Overview
Infinity Mining Limited’s latest quarterly cash flow report for the period ending 31 March 2025 reveals continued operational and investing cash outflows, with net cash used in operating activities amounting to A$222,000 and investing activities consuming a further A$368,000. These figures underscore the ongoing capital-intensive nature of exploration activities and the company’s current cash burn.
Despite these outflows, Infinity Mining managed to increase its cash reserves to A$567,000 by the end of the quarter, primarily through a significant equity raise that generated A$1.868 million. This capital injection provides a vital buffer as the company navigates a challenging market environment.
Strategic Funding Initiatives
To bolster its financial position further, Infinity Mining has launched a pro-rata non-renounceable option offer aimed at raising approximately A$282,010. This offer is underwritten by CPS Capital Pty Ltd and partially sub-underwritten by a substantial existing shareholder, which enhances the likelihood of successful completion. The funds raised are earmarked to support ongoing operations and reduce fixed costs.
The company’s strategy reflects a pragmatic approach to managing liquidity, balancing the need for continued exploration with fiscal discipline. The underwriting arrangements provide a degree of certainty in an otherwise volatile funding environment for junior miners.
Asset Divestment Plans
In a notable shift, Infinity Mining is actively pursuing divestment of several Western Australian projects, including assets in the Goldfields and Pilbara regions. These assets are currently under due diligence, with transactions expected to settle in the coming months. The divestments are intended to free up cash resources and reduce fixed costs, aligning with the company’s broader strategy to adapt to changing market conditions in the resources sector.
This move signals a strategic recalibration, focusing on core assets and operational efficiency. It also reflects the company’s response to sector-wide pressures and the imperative to maintain a sustainable cash runway.
Outlook and Operational Continuity
Infinity Mining remains confident in its ability to continue operations and meet its business objectives, contingent on the successful completion of the option offer and asset divestments. The company explicitly states it does not expect to maintain the current level of operating cash flows, highlighting the importance of these strategic initiatives.
While the timing and certainty of the divestments remain to be seen, the company’s proactive approach to funding and cost management provides a measure of reassurance to investors. The next few months will be critical in determining whether these plans translate into improved liquidity and operational stability.
Bottom Line?
Infinity Mining’s upcoming asset sales and equity raise will be pivotal in sustaining its exploration ambitions amid ongoing cash pressures.
Questions in the middle?
- What is the timeline and certainty around the completion of the Western Australian asset divestments?
- How will the proceeds from the option offer and divestments be allocated across exploration and corporate costs?
- What are the potential impacts on shareholder value and dilution from the ongoing equity raises?
