Leo Lithium Limited - Quarterly Cash Flow Report - 30 June 2024
LLL (LLL) Share Update July 2024 Thursday 25th
Leo Lithium Limited Reports Positive Cash Flow from Investing Activities
Leo Lithium Limited (ASX: LLL) has released its quarterly cash flow report for the period ending 30 June 2024, highlighting significant cash inflows from investing activities.
Instant Summary:
- Net cash used in operating activities: $1.55 million
- Net cash from investing activities: $11.21 million
- Cash and cash equivalents at end of period: $77.59 million
- Sale of 5% of MLBV and receipt of non-refundable deposit on sale of remaining 40% interest in MLBV: $114.06 million
- Mali Government settlement payment and capital gains tax: $102.85 million
Operating Activities
During the quarter, Leo Lithium Limited reported net cash used in operating activities amounting to $1.55 million. This includes staff costs of $1.1 million, administration and corporate costs of $1.17 million, and interest received of $545,000. Additionally, the company received $170,000 in management and administration fees from the Goulamina JV.
Investing Activities
The company reported a net cash inflow of $11.21 million from investing activities. This was primarily driven by the sale of 5% of MLBV for $98.3 million and the receipt of a non-refundable deposit of $15.7 million on the sale of the remaining 40% interest in MLBV. However, this was offset by a settlement payment to the Mali Government of $90.8 million and capital gains tax of $11.5 million.
Financing Activities
There were no cash flows from financing activities during the quarter. The company did not issue any equity securities, convertible debt securities, or borrowings.
Cash Position
Leo Lithium Limited ended the quarter with cash and cash equivalents of $77.59 million, up from $69.32 million at the beginning of the period. This increase was primarily due to the positive net cash flow from investing activities.
The positive cash flow from investing activities is a strong indicator of Leo Lithium Limited's financial health and strategic management of its assets. The significant cash inflow from the sale of MLBV interests will likely bolster investor confidence and provide the company with the necessary liquidity to fund future operations and growth initiatives. However, the substantial payments to the Mali Government and related taxes may slightly offset this positive sentiment.
Investor Reaction:
Analysts have generally reacted positively to the report, noting the strong cash position and successful asset sales. Some investors have expressed optimism about the company's future prospects, given its improved liquidity and strategic asset management.
Conclusion:
Investors should keep an eye on Leo Lithium Limited's future announcements and financial reports to assess the company's ongoing performance and strategic direction. The positive cash flow from investing activities and strong cash position are promising signs for the company's future growth and stability.