Cash Crunch Ahead? Native Mineral Resources Has Less Than One Quarter of Funding Left
Native Mineral Resources Holdings Limited reported a challenging quarter with negative operating cash flow but secured significant financing to support ongoing exploration activities. The company anticipates improved cash flow performance in coming months.
- Net cash used in operating activities of AUD 3.16 million for Q3 2025
- Investing cash outflows of AUD 5.74 million focused on exploration and evaluation
- Financing activities generated AUD 9.83 million, including equity issues and loans
- Cash reserves ended at AUD 950,000, with loan facilities fully drawn at AUD 17 million
- Management expects positive EBITDA and improved cash flow going forward
Quarterly Cash Flow Overview
Native Mineral Resources Holdings Limited (ASX – NMR) has released its quarterly cash flow report for the period ending 30 September 2025, revealing a mixed financial picture. The company recorded a net cash outflow of AUD 3.16 million from operating activities, primarily driven by exploration, evaluation, and administrative expenses. Investing activities further consumed AUD 5.74 million, reflecting ongoing commitments to mineral exploration projects.
Financing Bolsters Liquidity
Despite the negative operating and investing cash flows, Native Mineral Resources secured a net inflow of AUD 9.83 million from financing activities. This included proceeds from equity issues and a substantial loan facility fully drawn at AUD 16.997 million. The loan, provided by Collins St Convertible Notes Pty Limited, carries a 10% interest rate with capitalised interest deferring cash payments until February 2026. This strategic financing has been critical in maintaining the company’s liquidity, which stood at AUD 950,000 in cash and equivalents at quarter end.
Operational Outlook and Management Commentary
Management acknowledged the current cash constraints, with estimated funding sufficient for just 0.3 quarters at current outgoings. However, the company highlighted a positive EBITDA result for September and anticipates consistent cash receipts moving forward. The board expressed confidence in meeting immediate business requirements and sustaining operations, underpinned by ongoing exploration activities at key assets including Blackjack Milling Pty Ltd and Fortified Gold Pty Ltd.
Governance and Related Party Payments
The report disclosed payments to related parties totaling AUD 146,000, covering director fees and wages. Such transparency aligns with ASX governance standards and provides investors with clarity on executive remuneration during this critical phase. The company’s adherence to accounting standards and internal controls was reaffirmed by the board’s compliance statement accompanying the filing.
Looking Ahead
While the current cash runway is limited, Native Mineral Resources’ recent financing activities and operational improvements suggest a potential turnaround in cash flow dynamics. Investors will be watching closely for confirmation of sustained positive EBITDA and the company’s ability to convert exploration efforts into tangible value. The capitalised interest on loans offers short-term relief but will require careful management as repayment obligations commence next year.
Bottom Line?
Native Mineral Resources’ immediate liquidity challenges are offset by strategic financing and promising operational signs, but the path to sustainable cash flow remains to be proven.
Questions in the middle?
- Will Native Mineral Resources secure additional funding or partnerships to extend its cash runway?
- How will capitalised interest on loans impact the company’s financial position when repayments begin in 2026?
- Can the positive EBITDA trend observed in September be sustained amid ongoing exploration expenditures?
