How Will Alchemy Resources Use $750K Funding Amid Q3 Cash Outflows?
Alchemy Resources Limited reported a net cash outflow in Q3 2025 but strengthened its financial position by securing $750,000 through a new agreement with Newcam Minerals Ltd.
- Net cash used in operating activities of A$47,000 for the quarter
- Investing activities consumed A$394,000, focused on exploration and evaluation
- Cash and equivalents stood at A$791,000 at quarter-end
- No drawn financing facilities reported
- Secured $750,000 funding via agreement with Newcam Minerals Ltd
Quarterly Cash Flow Overview
Alchemy Resources Limited has released its cash flow report for the quarter ending 30 September 2025, revealing continued investment in its exploration activities despite a modest net cash outflow. The company recorded a net cash usage of A$47,000 from operating activities, reflecting ongoing administrative and corporate costs without generating revenue from operations.
Investing activities accounted for a significant cash outflow of A$394,000, primarily directed towards exploration and evaluation efforts. This level of expenditure underscores Alchemy’s commitment to advancing its mining projects, even as it navigates the typical financial challenges of a junior exploration company.
Financial Position and Funding
At the end of the quarter, Alchemy Resources held A$791,000 in cash and cash equivalents, providing a buffer to support its near-term activities. Notably, the company reported no drawn financing facilities, indicating it has not relied on debt financing during this period.
Crucially, Alchemy has recently secured A$750,000 through an agreement with Newcam Minerals Ltd, announced in mid-October 2025. This infusion of capital is expected to underpin ongoing exploration and operational funding, alleviating immediate liquidity concerns and enabling the company to maintain momentum in its project development.
Outlook and Operational Continuity
Despite the cash outflows, Alchemy Resources remains confident in its ability to continue operations with the current funding levels. The company anticipates sustaining its exploration activities and meeting business objectives without interruption, supported by the recent funding arrangement and its existing cash reserves.
As a junior explorer without current revenue streams, Alchemy’s financial health hinges on its ability to secure ongoing funding and manage expenditures prudently. The recent agreement with Newcam Minerals Ltd represents a positive step in this direction, though the company will need to maintain this momentum to support its long-term ambitions.
Bottom Line?
Alchemy’s recent funding boost offers a lifeline, but sustaining exploration will require continued financial discipline and strategic capital raises.
Questions in the middle?
- What specific projects will the $750,000 funding from Newcam Minerals support?
- How does Alchemy plan to manage cash flow if exploration costs increase or funding opportunities slow?
- Are there plans to pursue additional financing or partnerships beyond the current agreement?
