ASF Group Limited - Quarterly Cash Flow and Corporate Activities Update - 30 June 2024
AFA (AFA) Share Update July 2024 Monday 29th
ASF Group Limited Reports Quarterly Cash Flow and Corporate Activities
ASF Group Limited (ASX: AFA) has released its quarterly cash flow report for the period ending 30 June 2024, detailing the company's financial performance and key corporate activities.
Instant Summary:
- Net cash used in operating activities: $413,000 for the quarter.
- Cash and cash equivalents at the end of the period: $1.3 million.
- Extension of $25 million unsecured convertible loan facilities to 30 April 2026.
- Payments to related parties: $286,000 for consulting, director fees, and office rentals.
Quarterly Cash Flow Overview
ASF Group Limited reported a net cash outflow of $413,000 from operating activities for the quarter ending 30 June 2024. This brings the year-to-date net cash used in operating activities to $1.082 million. The company's cash and cash equivalents stood at $1.3 million at the end of the period.
Investing and Financing Activities
The company reported minimal cash flows from investing activities, with a net outflow of $408,000 for the quarter. This included payments for property, plant, and equipment, as well as investments in non-current assets. No significant proceeds from disposals were reported.
On the financing front, ASF Group Limited did not report any new equity or debt issuances during the quarter. However, the company highlighted the extension of its $25 million unsecured convertible loan facilities with Star Diamond Developments Limited to 30 April 2026. As of 30 June 2024, $22.95 million of this facility had been drawn down.
Corporate Activities and Investments
During the quarter, ASF Group Limited paid approximately $286,000 to related parties, including consulting and director fees amounting to $182,000 and office rentals of $104,000.
The company holds significant investments in various entities, including ActivEX Limited, Rey Resources Limited, Key Petroleum Limited, Kaili Resources Limited, and BSF Enterprise PLC. These investments span sectors such as mineral exploration, energy, and biotechnology.
Principal Investments
ActivEX Limited (AIV) completed the sale of its subsidiary for $75,000 and extended the maturity date of its $5 million unsecured loan facility. Rey Resources Limited (REY) extended the maturity dates of its loan facilities and increased the facility amount to $25 million. Key Petroleum Limited (KEY) is assessing higher forms of tenure for its assets affected by the Lake Eyre Basin policy.
BSF Enterprise PLC (BSFA) continues to make strides in tissue engineering and lab-grown leather, securing several proof-of-concept agreements and grants. ASF Group Limited holds 16,610,944 shares in BSFA, valued at approximately A$1.6 million as of 30 June 2024.
The extension of the loan facilities provides ASF Group Limited with additional financial flexibility, which is crucial for its ongoing operations and investments. The company's diverse investment portfolio across various sectors also positions it well for potential future growth. However, the net cash outflows from operating and investing activities indicate a need for careful financial management to ensure sustainability.
Investor Reaction:
Investors have shown cautious optimism regarding the extension of the loan facilities and the company's strategic investments. Analysts have noted the importance of maintaining cash flow stability and monitoring the performance of key investments.
Conclusion:
ASF Group Limited's quarterly cash flow report highlights the company's financial activities and strategic investments. Investors should keep an eye on the company's cash flow management and the performance of its diverse investment portfolio. Staying informed about ASF Group Limited's future updates will be crucial for making informed investment decisions.