Patronus Faces Operating Cash Burn Despite Strong Term Deposit Inflows

Quarterly Cash Flow Overview

Patronus Resources Limited has released its cash flow report for the quarter ending 30 September 2025, revealing a mixed but ultimately positive liquidity picture. The company recorded a net cash outflow of $2.2 million from operating activities, reflecting ongoing expenditure on exploration and corporate costs. However, this was more than offset by strong inflows of $8.2 million from investing activities, primarily linked to term deposit investments.

Investing Activities Bolster Liquidity

The substantial cash inflow from investing activities is a standout feature of this quarter’s report. Patronus Resources generated $8.2 million, largely through the maturity or placement of term deposits. These deposits, with an average term of 118 days, provide the company with a stable and liquid asset base. This strategic positioning has enabled Patronus to increase its cash and cash equivalents from $1.13 million at the start of the quarter to $7.14 million by the end.

Operating and Financing Cash Flows

Operating cash flows remained negative at $2.2 million, driven by exploration and evaluation activities, staff costs, and administration expenses. Financing activities had a minor impact, with a net outflow of $23,000, reflecting small repayments or transaction costs. Notably, the company has no borrowings or drawn financing facilities, underscoring a conservative capital structure.

Related Party Payments and Future Outlook

Payments to related parties and their associates amounted to $170,000 during the quarter. While the report does not provide detailed explanations for these payments, such disclosures are standard and warrant monitoring for any potential governance implications. Patronus Resources has confirmed it expects to continue operations with its current funding position and has no immediate plans for further capital raising, supported by its $40 million in term deposits.

Strategic Implications

This cash flow report suggests that Patronus Resources is maintaining a cautious but stable financial footing amid ongoing exploration activities. The sizeable term deposit holdings provide a buffer against operational cash burn, allowing the company to pursue its exploration objectives without immediate funding pressure. Investors will be watching closely for updates on exploration progress and any shifts in capital strategy as the company moves forward.