AUSTRALIAN energy firm, Invictus Energy Limited, reported a healthy liquidity position with US$10,08 for every dollar of short-term debt at the end of 2024 as the firm prepares to meet additional cash
expenses.
In its half-year report ended December 31, 2024, Invictus reported having current assets worth AU$13,75 million (US$8,67 million), more than three times the amount in the prior year.
Meanwhile, the group’s current liabilities were reported at AU$859 982 (US$542 031,39) during the same period, a significant reduction from the prior year’s AU$3,25 million (US$2,05 million).
This left Invictus with a current ratio of 10,08.
The healthy liquidity position comes as the end of last year saw Invictus’s total value of assets related to its exploration activities reach AU$126,11 million (US$79,47 million), an increase of AU$4,01 million (US$2,53 million) from the prior year.
“For the half-year ended 31 December 2024 the group incurred a loss after tax of AU$3 318 765 (2023: AU$4 149 060) and had total net cash outflows from operating and investing activities of AU$7 572 715 (2023: AU$33 010 739),” Invictus said, in a statement attached to its new half-year financial report ended December 31, 2024.
“The directors have prepared an estimated cash flow forecast for the period to March 31, 2026 to determine if the company may require additional funding during this period. The group intends to continue with its operating activities at the Cabora Bassa Project and will incur related cash expenditure.”
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The firm revealed that this results in a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.
“Therefore, the group may be unable to realise its assets and discharge its liabilities in the normal course of business,” Invictus said.
“The directors think that the group’s exploration and development assets will attract further capital investment when required; and the directors expect the group to be successful in securing additional funding through debt or equity issues, when and if required.”
Since it began its gas and oil exploration efforts at its Cabora Bassa Project, located in the Muzarabani District of the Mashonaland Central Province, Invictus has made significant exploration success.
In December 2023, the company made a gas discovery and last year discovered a prospective resource of 184 million barrels of oil condensate at its Cabora Bassa
project.
Invictus has been funding itself through several capital raising initiatives on the Victoria Falls Stock Exchange and the Australian Stock Exchange.
It raised AU$18 760 200 (US$11,82 million) by issuing 185 564 536 ordinary shares from a capital raise in Zimbabwe.
The shares were issued in three tranches, on August 2, September 4 and December 31, 2024.
Should Invictus not be able to continue as a going concern, Invictus said it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business.
This would be at amounts that differ from those stated in the financial statements.
“As at December 31, 2024, the carrying value of the capitalised exploration and evaluation properties of the consolidated entity was AU$126 114 870 (June 2024: AU$122 097 259); the carrying amount of the project is per the reconciliation of movement in exploration and evaluation property,” Invictus
said.
