Orion Minerals Ltd - Quarterly Cash Flow Report - June 2024
ORN (ORN) Share Update July 2024 Sunday 21st
Orion Minerals Ltd Reports Quarterly Cash Flow Update
Orion Minerals Ltd (ASX: ORN) has released its quarterly cash flow report for the period ending June 2024, detailing significant financial activities and updates on its mining projects.
Instant Summary:
- Net cash used in operating activities: $7.41 million.
- Net cash used in investing activities: $3.86 million.
- Net cash from financing activities: $10.52 million.
- Cash and cash equivalents at end of period: $8.27 million.
- Completion of high expenditure programs and feasibility studies.
Operating Activities
During the current quarter, Orion Minerals Ltd reported a net cash outflow of $7.41 million from operating activities. This includes significant payments for exploration and evaluation amounting to $5.59 million, staff costs of $1.14 million, and administration and corporate costs of $0.96 million. Interest received during this period was $0.17 million, while intragroup services and cost recoveries from associates contributed $0.10 million.
Investing Activities
The company also reported a net cash outflow of $3.86 million from investing activities. Major expenditures included $2.73 million for exploration and evaluation, $0.90 million for investments, and $0.11 million for property, plant, and equipment. Cash flows from loans to other entities resulted in an outflow of $0.15 million, partially offset by other inflows of $0.02 million.
Financing Activities
Orion Minerals Ltd saw a net cash inflow of $10.52 million from financing activities. This was primarily driven by proceeds from borrowings amounting to $7.57 million and project financing from Triple Flag totaling $2.95 million. The company did not report any proceeds from issues of equity securities or convertible debt securities during this quarter.
Cash Position
At the beginning of the period, the company had cash and cash equivalents of $9.16 million. After accounting for the net cash flows from operating, investing, and financing activities, the cash and cash equivalents at the end of the period stood at $8.27 million. This includes $0.90 million ring-fenced for the Flat Mines Project and $6.21 million for the PCZM expenditure.
Financing Facilities and Future Plans
Orion Minerals Ltd has a total financing facility of $36.45 million, with $33.71 million drawn at the end of the quarter. The company has an unused financing facility of $2.75 million available. Significant funding arrangements include the IDC Loan for the Okiep Copper Project and the IDC Convertible Loan for the Prieska Copper Zinc Mine. The company also secured early funding from Triple Flag for the PCZM project.
Looking ahead, Orion Minerals Ltd has completed a high expenditure program of trial mining at its PCZM project and feasibility studies for both Okiep and PCZM. The company anticipates reduced operating cash flows in the upcoming period until project funding is secured to ramp up operations and mine development.
The financial activities reported by Orion Minerals Ltd reflect ongoing investments in exploration and project development. The net cash outflows from operating and investing activities highlight the company's commitment to advancing its mining projects. However, the significant inflow from financing activities indicates strong support from financial institutions and project partners.
The company's cash position remains stable, with sufficient funding available to meet short-term obligations. Investors may view the completion of high expenditure programs and feasibility studies as positive steps towards future growth and development. However, the reliance on securing additional project funding could introduce some uncertainty in the near term.
Investor Reaction:
Analysts have noted the company's proactive approach in securing financing and advancing its mining projects. Some investors have expressed optimism about the potential for future growth, while others remain cautious about the reliance on additional funding. Overall, the market reaction has been mixed, reflecting both the opportunities and challenges faced by Orion Minerals Ltd.
Conclusion:
Investors should closely monitor Orion Minerals Ltd's progress in securing project funding and advancing its mining operations. The company's strategic initiatives and financial management will be crucial in maintaining investor confidence and driving future growth. Staying informed about the latest developments and financial updates will be key for making informed investment decisions.