My understanding is they have largely suspended drill operations to preserve cash / extend runway. This conserve cash approach also aligns to the following reference in the Quarterly:
Implementation during the quarter of a significant reduction in activities and expenditures, including a reduction in the Ecuadorian workforce, management team consolidation and closure of the Brisbane office.
The Quarterly also states that they had $200k of redundancy costs included in exploration costs plus a further $200k of redundancy costs at the head office corporate level included in the "net cash used in operating activities" figure of $867k (so real ongoing cost there is closer to $670k for the December quarter).
Hence a more realistic assessment is item 8.6 ($2,267k of cash) divided by item 8.1 (net cash used in operating activities = $867k) adjusted for the $200k of redundancies in that figure. Round it to $700k of ongoing "keep the lights on" costs plus allow a further $100k per quarter for other lumpier timing related expenses (audit, ASX fees, etc) and they have enough funds to get through to June / July.
Note that mid-year aligns with the prospective timing that Duffy has been speaking to for concluding any partnership deal. One would think they will (after the latest due diligence inspections occurring about now) be about to run a "best and final offer" type process with prospective suitors, which would likely include a firm response timeframe to ensure that they can conclude something within this cash window.
So, clearly not as dire as you have put forward (but by no means a slam dunk - much can still go wrong). Yes, they are under significant timing pressure to do a deal, but this process will have been running for 12 months by June 2025. So it is well advanced and with parties who have had considerable time to get their thoughts together (and for management / board to be able to get a good read on engagement and deal likelihood). The STM board and exec have been through this rodeo many times in the past, so they will have a good idea of who are the tyre kickers vs those who are fully engaged.
The other thing that is working strongly in their favour is the price of gold. I would be pessimistic on securing a partnership deal if gold was in the doldrums, but the gold price is powering along nicely and assets of this potential size would be very appealing as well as being a bit of a unicorn. If you miss this for a few "pennies", where are you going to find the next potential 20m resource oz opportunity this cheaply?
STM Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
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