Altech Batteries Quarterly Cash Flow Report - September 2024
ATC (ATC) Share Update October 2024 Friday 25th
Altech Batteries Reports Quarterly Cash Flow Update
Altech Batteries Ltd (ASX: ATC) has released its quarterly cash flow report for the period ending 30 September 2024, detailing significant financial activities and a notable increase in cash reserves.
Instant Summary:
- Net cash from operating activities: -$1.2 million.
- Net cash from investing activities: -$1.7 million.
- Net cash from financing activities: $6.4 million.
- Cash and cash equivalents increased to $5.6 million.
- Estimated quarters of funding available: 4.4.
Operating Activities
During the quarter, Altech Batteries reported a net cash outflow of $1.2 million from operating activities. This included $1.1 million in staff costs and $92,000 in administrative and corporate expenses. The company did not receive any government grants or tax incentives during this period.
Investing Activities
The company invested $555,000 in property, plant, and equipment, and $1.1 million in research and development, particularly focusing on the CERENERGY battery project. These investments resulted in a net cash outflow of $1.7 million from investing activities.
Financing Activities
Altech Batteries successfully raised $6.9 million through the issuance of equity securities, offset by $554,000 in transaction costs. The company also received $57,000 from borrowings, leading to a net cash inflow of $6.4 million from financing activities.
Cash Position
As a result of these activities, the company's cash and cash equivalents increased from $2.1 million at the beginning of the quarter to $5.6 million at the end. This positions Altech Batteries with approximately 4.4 quarters of funding available for future operations.
The increase in cash reserves is a positive sign for Altech Batteries, providing the company with a stronger financial footing to continue its research and development efforts. The successful equity raise indicates investor confidence in the company's strategic direction and potential growth in the battery technology sector.
Investor Reaction:
Analysts are likely to view the increase in cash reserves and successful equity raise as positive indicators of Altech Batteries' financial health and future prospects. However, continued monitoring of operating expenses and investment efficiency will be crucial for sustaining investor confidence.
Conclusion:
Investors should keep an eye on Altech Batteries' progress in its CERENERGY battery project and other strategic initiatives. The company's ability to manage its cash flow effectively will be key to maintaining its growth trajectory and achieving long-term success.