Group 6 Metals Clarifies Cash Flow, Signals Operational Turnaround
Group 6 Metals Limited has updated its quarterly cash flow report, excluding certain financing from working capital calculations, while confirming sufficient funding and forecasting improved operational cash flows.
- Revised cash flow report excludes mobile mining fleet finance from working capital
- Net cash used in operations totaled A$3.238 million for the quarter
- Cash and equivalents stood at A$2.199 million at quarter-end
- Available working capital facilities total A$2 million
- Company expects improved cash flow from higher tungsten prices and cost reductions
Updated Cash Flow Reporting
Group 6 Metals Limited (ASX, G6M), operator of the Dolphin Tungsten Mine in Tasmania, has lodged a revised Appendix 5B Quarterly Cash Flow Report for the quarter ended 30 September 2025. The update follows a directive from the ASX to exclude the mobile mining fleet finance facility from the calculation of available cash for future operating activities, as this facility is restricted to equipment leasing and not available for general working capital.
Financial Position and Liquidity
The revised report shows the company used A$3.238 million in net cash from operating activities during the quarter, with cash and cash equivalents at A$2.199 million at the end of September. Additionally, Group 6 Metals has A$2 million in unused finance facilities available for working capital purposes, excluding the mobile fleet finance facility. This results in an estimated 1.3 quarters of funding available based on current cash outflows.
Operational Outlook and Funding Strategy
Despite the relatively tight liquidity position, the company expressed confidence in its operational outlook. Management anticipates improved cash flows driven by recent production outcomes, sustained increases in tungsten prices, and ongoing cost reductions. The company has arranged bridging finance facilities sufficient to meet working capital needs for at least the next two quarters, negating the immediate need for capital raising.
Financing Facilities Overview
Group 6 Metals’ financing structure includes secured and unsecured debt facilities totaling approximately A$42.9 million, with A$35 million drawn at quarter-end. Key lenders include Pure Asset Management, Chrysalis Investments, Elphinstone Holdings, Abex Limited, and the State of Tasmania. The mobile mining fleet finance facility, which is excluded from working capital calculations, remains partially drawn at around A$1.43 million.
Looking Ahead
The company’s revised reporting enhances transparency around its liquidity and funding position, providing investors with a clearer picture of operational sustainability. While the current funding runway is limited, management’s forecast of improved cash flow and the availability of bridging facilities suggest a pathway to stabilisation without immediate equity dilution.
Bottom Line?
Group 6 Metals’ clarified cash position and positive operational outlook set the stage for cautious optimism amid tight liquidity.
Questions in the middle?
- Will operational cash flow improvements materialize as forecast in coming quarters?
- How will tungsten price volatility impact Group 6 Metals’ revenue and cash flow?
- Are there plans to refinance or extend current debt facilities to improve liquidity?
