Hastings Technology Metals Ltd - Quarterly Cash Flow Report - 30 June 2024
HASTINGS TECHNOLOGY METALS LTD (HAS) Share Update July 2024 Tuesday 30th
Hastings Technology Metals Ltd Releases Quarterly Cash Flow Report
Hastings Technology Metals Ltd (ASX: HAS) has released its quarterly cash flow report for the period ending 30 June 2024, detailing significant cash outflows and financial activities.
Instant Summary:
- Net cash used in operating activities: $4.34 million
- Net cash used in investing activities: $13.99 million
- Net cash from financing activities: $15.15 million
- Cash and cash equivalents at the end of the period: $21.77 million
- Proceeds from issues of equity securities: $15.88 million
Operating Activities
Hastings Technology Metals Ltd reported net cash used in operating activities of $4.34 million for the current quarter. The primary expenses included administration and corporate costs amounting to $4.77 million. The company received $154,000 in interest and $280,000 from government grants and tax incentives.
Investing Activities
The company spent $12.75 million on property, plant, and equipment and $2.06 million on capitalized exploration and evaluation. Despite these expenditures, Hastings received $826,000 in dividends, resulting in a net cash outflow of $13.99 million from investing activities.
Financing Activities
Hastings raised $15.88 million from the issuance of equity securities, with transaction costs related to these issues amounting to $684,000. The company also secured $445,000 in borrowings and made repayments totaling $145,000. Net cash from financing activities was $15.15 million.
Cash Position
At the beginning of the period, Hastings had $24.96 million in cash and cash equivalents. After accounting for operating, investing, and financing activities, the company ended the quarter with $21.77 million in cash and cash equivalents.
Payments to Related Parties
The report also disclosed payments to related parties amounting to $649,000, which included director fees, company secretarial, and consultancy fees to directors and their related entities.
The significant cash outflows in operating and investing activities highlight the company's ongoing investments in property, plant, and equipment, as well as exploration and evaluation. The net positive cash flow from financing activities indicates a strong ability to raise capital, which is crucial for future operations and growth. However, the overall decrease in cash and cash equivalents may raise concerns among investors about the company's liquidity and financial stability.
Investor Reaction:
Analysts are likely to have mixed reactions to this report. While the ability to raise capital is a positive sign, the substantial cash outflows and decrease in cash reserves may cause concern. Investors will be closely monitoring the company's future financial reports and strategic plans to ensure continued growth and stability.
Conclusion:
Investors should keep a close eye on Hastings Technology Metals Ltd's future financial activities and strategic decisions. The company's ability to manage its cash flows and secure additional funding will be critical in maintaining investor confidence and supporting long-term growth.