Mining suspended at Mystery as cash falls 59% to NZ$499k

Against that backdrop, revenue for the half was NZ$4,849, the NPAT loss deepened 15.0% to NZ$1.07m, and the operating cash outflow worsened 17.4% to NZ$1.01m. Cash on hand fell 58.7% to NZ$499k from NZ$1.21m a year earlier. The balance sheet expanded sharply on the equity side — total equity up 61.6% to NZ$16.2m and total assets up 58.6% to NZ$17.1m, above Annolyse's historical range of NZ$10.8m–NZ$15.9m (mean NZ$12.6m) — while the prior-period convertible note was extinguished, taking gross borrowings to zero.

Half-year revenue of NZ$4,849 was technically flat versus the supplied prior comparable (canonical 0.0%, above the historical mean decline of -55.1%), but with production paused the board has explicitly conditioned recommencement on a revised workplan and economics. The "above normal" revenue framing reflects how depressed the historical baseline is, not a step-change in commercial performance.

Cash burn now dominates the read. Operating cash outflow of NZ$1.01m for the half, against NZ$499k of cash on hand, implies a runway measured in months at the current burn rate unless further funding is secured. The 58.7% decline in cash year-on-year underlines that the current operating model is consuming, not generating, liquidity.

The capital structure has been rebuilt rather than the operating performance. Total equity rose 61.6% (NZ$6.2m) while the convertible note was retired, indicating a meaningful equity issuance sustained the business through the period. That tells you balance-sheet capacity, not earnings power, has improved — and the unchanged ROE band (-6.8% current vs -7.3% prior, both within Annolyse's historical range) confirms profitability is still tracking the company's recent baseline.

The supplied second-half shape context is not usable as a forecast: HY25 represented -23.1% of FY25 NPAT because FY25 NPAT swung to a reported positive NZ$4.0m off an HY25 loss of NZ$0.93m, which implies H2 FY25 carried a large non-trading item rather than a recurring earnings step-up. With Mystery mining suspended pending board approval of a revised workplan, no production trajectory for H2 FY26 can be inferred from the release. The relevant near-term reads will be the timing of recommencement, any update on grade and cost assumptions, and any further capital-raising step — none of which are time-bound in this announcement.

The PBT and NPAT growth gap is 0.0pp at an effective tax rate of 0%, so the headline -15.0% movement is a clean operating read — but it is a deterioration, not an improvement. Cash conversion deteriorated, with the operating outflow widening faster (-17.4%) than the NPAT loss (-15.0%), so the cash picture is worse than the income statement suggests.

The 61.6% lift in equity and the retirement of the convertible note indicate that the period was bridged by an equity injection rather than by trading performance. ROE at -6.8% sits within Annolyse's historical band of -9.3% to -3.4%, reinforcing that the underlying economics have not shifted; what has shifted is the funding source. With production now paused, the durability of even the small NZ$4,849 revenue figure is unclear until the workplan is approved and grades are validated.

This briefing cannot assess going-concern adequacy, the terms of the implied capital raise, or the economics of any restarted Mystery production, none of which are quantified in the release.