Tombador Iron Faces Re-listing Hurdles While Pursuing New Iron Project
Tombador Iron Limited reported a modest cash increase to AUD 10.9 million in the March quarter, driven by royalty income from its sold Tombador project, while progressing the acquisition of the Colomi Iron Project in Brazil and preparing for ASX re-listing.
- Cash holdings rose by AUD 80k to AUD 10.905m as of March 31, 2025
- Received AUD 350k in royalty payments from Tombador Iron Project sale
- Focused on acquisition of Colomi Iron Project with preliminary planning underway
- Engaged with ASX on re-listing requirements and investor discussions
- Corporate and board costs totalled AUD 338k; no borrowings reported
Quarterly Financial Snapshot
Tombador Iron Limited closed the March 2025 quarter with a slight increase in cash reserves, reporting AUD 10.905 million on hand, up AUD 80,000 from the previous quarter. This modest growth was primarily supported by AUD 350,000 in royalty payments stemming from the sale of its flagship Tombador Iron Project in Brazil, which the company divested in December 2023. Interest income from cash deposits added a further AUD 66,000 to operating cash flows.
Operating expenses during the quarter included AUD 152,000 in corporate costs and AUD 186,000 in board and staffing expenses, reflecting timing differences compared to the prior quarter. Notably, the company remains debt-free, with no borrowings or financing activities recorded.
Strategic Shift to Colomi Iron Project
With the Tombador project sold and the company in voluntary suspension, Tombador Iron’s strategic focus has shifted to acquiring the Colomi Iron Project in northeast Brazil. The Colomi project boasts a world-scale magnetite mineral resource with promising potential to produce high-quality blast furnace and direct reduction iron concentrates.
During the quarter, the company advanced preliminary planning for project scoping and prefeasibility studies, positioning itself for an accelerated study phase once re-listed on the ASX. Tombador Iron also maintained active dialogue with the ASX, addressing queries related to Listing Rules 1.1 condition 1 and 1.19, critical steps toward re-listing.
Investor Engagement and Corporate Governance
Alongside project development activities, Tombador Iron continued discussions with potential fund managers, brokers, strategic investors, and related parties, signaling a concerted effort to secure support for its next growth phase. Payments to related parties amounted to AUD 182,000, covering director fees, consulting, and office rent, consistent with governance transparency requirements.
The company’s leadership, including Executive Director Stephen Quantrill and Chair Anna Neuling, remain focused on navigating the transition from its previous operations to the new acquisition and re-listing milestones.
Outlook and Market Positioning
Tombador Iron’s current cash position and royalty income provide a stable financial base as it pursues the Colomi acquisition. However, the timing of the acquisition’s completion and the company’s re-listing remain key uncertainties. The successful execution of prefeasibility studies and securing investor backing will be pivotal in defining Tombador’s next chapter in the iron ore sector.
Bottom Line?
Tombador Iron’s steady cash flow and strategic pivot to Colomi set the stage for a critical re-listing and growth phase.
Questions in the middle?
- When will Tombador Iron complete the acquisition of the Colomi Iron Project and finalize re-listing?
- What are the detailed terms and financial commitments involved in the Colomi acquisition?
- How will Tombador Iron finance the prefeasibility studies and subsequent development without current borrowings?
