RAS
Ragusa Minerals LTD
ASX
Quarterly Appendix 5B Cash Flow Report - March 2024
Sentiment:
Quarterly Cash Flow Report
29 April 2024 6:56 PM
Ragusa Minerals Limited's cash flow report for the quarter ending March 31, 2024, reveals a net decrease in cash and cash equivalents, with significant spending on exploration and evaluation activities.
Worse than expected
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
The entity may need to raise further cash to fund its operations.
The document does not specify the details of the capital raise.
Summary
- Ragusa Minerals Limited (ASX: RAS) reported its quarterly cash flow for the period ending March 31, 2024.
- The company's net cash used in operating activities was $60,000 for the quarter and $459,000 for the year to date.
- Payments for exploration and evaluation totaled $22,000 for the quarter and $695,000 year to date.
- The company's cash and cash equivalents at the end of the quarter stood at $736,000, down from $818,000 at the beginning of the quarter.
- There were no proceeds from the issuance of equity or debt securities during the quarter.
- The company estimates it has less than 2 quarters of funding available based on current outgoings.
Sentiment
Score: 4
Explanation: The report indicates a concerning cash position and the need for additional funding, which creates uncertainty. While exploration is ongoing, the short runway raises concerns about the company's ability to continue operations without securing additional capital.
Positives
- The company received $2,000 in interest income during the quarter and $11,000 year to date.
- The company received $21,000 in government grants and tax incentives year to date.
Negatives
- The company experienced a net cash outflow from operating activities of $60,000 for the quarter and $459,000 year to date.
- Exploration and evaluation expenses totaled $22,000 for the quarter and $695,000 year to date.
- The company's cash reserves decreased from $818,000 to $736,000 during the quarter.
Risks
- The company has less than two quarters of estimated funding available, indicating a need for additional financing.
- Continued cash outflows from operating and investing activities could further deplete cash reserves.
- Failure to secure additional funding could impact the company's ability to continue exploration and evaluation activities.
Future Outlook
The company needs to raise further cash to fund its operations, but the document does not provide specific details on how this will be achieved or the likelihood of success.
Industry Context
This report is typical for a mining exploration company, where significant upfront investment in exploration is common before revenue generation. The company's cash position and burn rate are key metrics for investors to monitor, especially compared to peers in the junior mining sector.
Comparison to Industry Standards
- Comparing Ragusa Minerals to other junior mining companies listed on the ASX, a cash balance of A$736,000 is relatively low, especially considering the exploration expenditure.
- Many peers at a similar stage of development often maintain cash reserves of A$1-5 million to fund ongoing exploration and feasibility studies.
- Companies like Sayona Mining (SYA) or Core Lithium (CXO), while further advanced, provide benchmarks for managing cash flow during exploration phases, often involving strategic partnerships or offtake agreements to secure funding.
- The reported cash burn rate suggests a need for careful cost management and strategic fundraising to ensure continued operations.
Stakeholder Impact
- Shareholders may experience dilution if the company raises capital through equity financing.
- Employees' job security could be at risk if the company faces financial difficulties.
- Suppliers may face delayed payments if the company's cash flow problems persist.
- Creditors may be concerned about the company's ability to meet its financial obligations.
Key Dates
- 31 March 2024: End of the current quarter for which the cash flow report is prepared.
- 30 April 2024: Date of the compliance statement and authorization of the report by the Board of Ragusa Minerals Limited.
Keywords
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.
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.
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.
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.