RAS
Ragusa Minerals LTD
ASX
Quarterly Appendix 5B Cash Flow Report - June 2024
Sentiment:
Quarterly Cash Flow Report
30 July 2024 6:12 PM
Ragusa Minerals Limited reports a net cash decrease of $296,000 for the quarter ending June 30, 2024, with 1.49 quarters of funding available and plans to raise further capital.
Worse than expected
The company's cash reserves have decreased significantly from the previous quarter.
The company has negative operating cash flow and relies on capital raising to continue operations.
The company only has 1.49 quarters of funding available.
Capital raise
The company plans to raise further cash to fund its operations.
The capital raising may be combined with new asset or project acquisitions.
Summary
- Ragusa Minerals Limited's quarterly cash flow report for the period ending June 30, 2024, indicates a net cash decrease of $281,000 from operating activities and $15,000 from investing activities.
- The company's cash and cash equivalents decreased from $736,000 to $440,000 during the quarter.
- Exploration and evaluation payments totaled $15,000 if capitalized and $52,000 if expensed for the quarter.
- Administration and corporate costs amounted to $81,000 for the quarter.
- The company received $25,000 in government grants and tax incentives during the quarter.
- The company estimates it has 1.49 quarters of funding available based on current outgoings.
- Ragusa Minerals anticipates continuing negative operating cash flows due to its exploration stage.
- The company plans to raise further cash to fund operations, potentially combined with new asset or project acquisitions.
Sentiment
Score: 4
Explanation: The sentiment is negative due to the company's reliance on future capital raises and limited cash runway, despite the positive outlook on continuing operations.
Positives
- The company received $25,000 in government grants and tax incentives during the quarter.
- Ragusa Minerals expects to be able to continue its operations and meet its business objectives based on future expected successful capital raisings.
Negatives
- The company experienced a net cash decrease of $296,000 for the quarter.
- Ragusa Minerals has negative operating cash flows due to its exploration stage.
- The company estimates it has 1.49 quarters of funding available based on current outgoings.
Risks
- The company's ability to continue operations depends on raising further capital.
- Failure to secure additional funding could impact the company's ability to meet its business objectives.
- The company is in the exploration stage and does not generate income.
Future Outlook
The company expects to continue its operations and meet its business objectives based on future expected successful capital raisings, which may be combined with new asset or project acquisitions.
Management Comments
- The Company expects to have negative operating cash flows for the time being as it is in the exploration stage and does not generate income.
- The Company does expect to be able to continue its operations and meet its business objectives based on future expected successful capital raisings, which may be combined with new asset or project acquisitions.
Industry Context
This report is typical for a mining exploration company that is currently in the exploration phase and not yet generating revenue from production. The need for ongoing capital raising is common in this sector.
Comparison to Industry Standards
- Comparing Ragusa Minerals to other exploration companies like Sayona Mining or Core Lithium, which are further along in their project development, shows that Ragusa's cash burn rate is relatively low.
- However, companies like those mentioned have secured offtake agreements and are closer to production, which provides more financial stability.
- Junior explorers often rely on capital markets to fund their activities, making Ragusa's situation typical but also highlighting the inherent risks.
Stakeholder Impact
- Shareholders face potential dilution from future capital raises.
- Employees' job security depends on the company's ability to secure funding.
- Suppliers and creditors face increased risk if the company's financial situation deteriorates.
- Customers are not applicable as the company is in the exploration stage.
Next Steps
- The company needs to secure additional funding to continue operations.
- The company will continue exploration and evaluation of new assets and projects.
- The company may pursue new asset or project acquisitions.
Key Dates
- 30 June 2024: End of the current quarter
- 31 July 2024: Date of the report
Keywords
cash flow, exploration, funding, capital raising, mining, Ragusa Minerals, RAS
RAS
Ragusa Minerals LTD
ASX
Sector: Materials
Filings with Classifications
Capital raise
26 June 2025 6:28 PM
Capital Raise Announcement
- The document details an immediate capital raise of $427,200 through a placement to sophisticated investors.
Worse than expected
11 June 2025 8:54 PM
Company Update
- The Binding Heads of Agreement with Geopolymer Industries Pty Ltd was terminated due to the inability to satisfy conditions precedent, which is a negative outcome for the Company.
Capital raise
27 April 2025 6:29 PM
Quarterly Activities Report
- Ragusa will conduct a placement of fully paid ordinary shares to raise up to $2,002,000 (before costs) via the issue of up to 91,000,000 shares (Placement) at $0.022per share.
- Tranche 1 will comprise the issue of 13,650,000 Shares at 2.2 cents per share, raising $300,300 (before costs), to be issued under the Company's available placement capacity under ASX Listing Rule 7.1.
- Tranche 2 will comprise the issue of approximately 77,350,000 Shares at 2.2 cents per share, raising $1,701,700 (before costs), following receipt of Ragusa shareholder approval at a general meeting.
Capital raise
27 April 2025 6:29 PM
Quarterly Cash Flow Report
- The Company announced it will conduct a placement of fully paid ordinary shares to raise up to $2m (before costs).
- Funds raised from the placement will enable the Company to fund a new asset acquisition and current operations.
Worse than expected
28 October 2024 3:07 AM
Quarterly Cash Flow Report
- The company experienced a significant decrease in cash and cash equivalents during the quarter, indicating worse than expected financial performance.
Capital raise
28 October 2024 3:07 AM
Quarterly Cash Flow Report
- The company is considering its options with regards to raising additional funds.
- The company believes it would be successful in raising sufficient funds to continue with the planned level of operations.
Capital raise
24 October 2024 10:37 PM
Annual General Meeting Notice
- Resolution 3 seeks shareholder approval for a 7.1A mandate, allowing the company to issue up to an additional 10% of its issued capital.
- Funds raised under the 7.1A mandate will be used for acquisitions, exploration, business development, and working capital.
Capital raise
9 September 2024 4:39 AM
Annual Report
- The Group’s ongoing activities may require substantial further financing in the future.
- The Company will require additional funding to continue its exploration and evaluation operations on its projects with the aim to identify economically mineable reserves and resources.
- Any additional equity financing may be dilutive to shareholders, may be undertaken at lower prices than the current market price and debt financing, if available, and may involve restrictive covenants which limit the Group’s operations and business strategy.
Worse than expected
30 July 2024 6:12 PM
Quarterly Cash Flow Report
- The company's cash reserves have decreased significantly from the previous quarter.
- The company has negative operating cash flow and relies on capital raising to continue operations.
- The company only has 1.49 quarters of funding available.
Capital raise
30 July 2024 6:12 PM
Quarterly Cash Flow Report
- The company plans to raise further cash to fund its operations.
- The capital raising may be combined with new asset or project acquisitions.
Worse than expected
29 April 2024 6:56 PM
Quarterly Cash Flow Report
- The company's cash reserves have decreased, and the estimated quarters of funding available is less than 2, indicating a worsening financial position.
Capital raise
29 April 2024 6:56 PM
Quarterly Cash Flow Report
- The entity may need to raise further cash to fund its operations.
- The document does not specify the details of the capital raise.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.