Infinity Mining Reports AUD 246K Operating Cash Outflow in June Quarter
Infinity Mining Limited reported a significant cash outflow in the June quarter and is pursuing divestments of its Western Australian projects to shore up finances. The company remains confident in securing additional funding to sustain operations.
- Net cash used in operating activities, AUD 246,000
- Investing cash outflows of AUD 118,000 mainly on exploration
- Financing inflows of AUD 118,000 from prior entitlement offer
- Plans to divest Western Australian assets to reduce costs
- Current cash balance stands at AUD 321,000 with funding options under review
Quarterly Cash Flow Overview
Infinity Mining Limited has disclosed its cash flow report for the quarter ending 30 June 2025, revealing a net cash outflow from operating activities of AUD 246,000. This outflow was driven by ongoing exploration and evaluation costs, staff expenses, and corporate overheads. Investing activities also consumed AUD 118,000, primarily related to exploration and evaluation efforts.
Partially offsetting these outflows, the company recorded financing inflows of AUD 118,000, stemming from a previously completed pro-rata non-renounceable entitlement offer of new options. Despite these inflows, the company’s cash reserves declined from AUD 567,000 at the start of the quarter to AUD 321,000 at quarter-end.
Strategic Response to Market Conditions
In response to the challenging cash flow position and evolving market dynamics in the resources sector, Infinity Mining is actively exploring the divestment of its Western Australian projects. Several assets located in the Pilbara region are currently under due diligence, with transactions expected to settle in the near term. This strategic move aims to reduce fixed costs associated with these tenements and free up additional cash resources to support ongoing operations.
The company’s board has acknowledged that the current level of net operating cash outflows is unsustainable in the medium term. As such, management is focused on cost containment and asset rationalisation to improve the financial outlook.
Funding Outlook and Operational Continuity
While Infinity Mining’s cash outflows exceed its available cash for the upcoming quarter, the company remains confident in its ability to continue operations. The board is actively monitoring the financial position and evaluating various funding options, including potential equity raisings or other financing mechanisms. The successful completion of the recent entitlement offer demonstrates the company’s capacity to raise capital when necessary.
Looking ahead, the company’s ability to secure additional funding and successfully execute asset divestments will be critical to sustaining its exploration activities and meeting business objectives.
Bottom Line?
Infinity Mining’s next moves on asset sales and funding will be pivotal in navigating its cash flow challenges.
Questions in the middle?
- Which Western Australian assets are under due diligence and what are their valuations?
- What specific funding options is Infinity Mining considering beyond equity raises?
- How will the divestment strategy impact the company’s exploration pipeline and long-term growth?
