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REG - Adriatic Metals - QUARTERLY ACTIVITIES REPORT

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RNS Number : 0288V  Adriatic Metals PLC  29 January 2025

29 January 2025

 

Adriatic Metals PLC

QUARTERLY ACTIVITIES REPORT

For the three months ended 31 December 2024

("Q4" or "Quarter")

 

Q4 HIGHLIGHTS

•   48kt ore milled at 234g/t Ag, 2.6g/t Au, 7.5% Zn, 4.8% Pb in Q4 and a
total of 76kt of ore milled in 2024.

•   934koz of silver equivalent ('AgEq') produced in Q4, with a total of
1,335koz AgEq produced in 2024.

•   $27m of sales receipts in Q4.

•   Operations are running 24/7 and commercial production now expected to
be reached in Q1 due to the severe winter weather delays in December and
January.

•   Construction advanced at the Veovaca Tailing Storage Facility ('TSF')
for completion in Q1.

•   FY 2025 production guidance of 625-675kt ore milled
and 12,000-13,000koz AgEq produced.

•   Ausenco technical study completed on Vares Processing Plant expansion
options. Estimated $25m plant capex required to increase throughput to
1.3Mtpa.

•   Cash balance at 31 December 2024 of $21m plus approximately $3m in
finished concentrate.

•   $25m concentrate prepayment arrangement with Trafigura completed.
Funds received in January 2025.

•   Current cash balance at 27 January of $46m.

•   First debt repayment of approx. $19m to Orion Mine Finance scheduled
for 31 March 2025.

 

Note: Unless otherwise stated, all dollar figures are United States dollars
($).

 

The Company will host a Q4 QAR webinar on Wednesday 29 January at 8am GMT /
7pm AEDT on the Investor Meet Company platform. Please register and submit a
question here:
https://www.investormeetcompany.com/adriatic-metals-plc/register-investor
(https://www.investormeetcompany.com/adriatic-metals-plc/register-investor)

 

A recording of the webinar will be also published on the Adriatic website
following the event. The webinar presentation will be available at:
https://www.adriaticmetals.com/investors/corporate-presentations
(https://www.adriaticmetals.com/investors/corporate-presentations) .

 

 

Laura Tyler, Managing Director & CEO of Adriatic, commented:

 

"In Q4, Adriatic transitioned from a development-stage company to a metals
producer, generating $27m in sales receipts. However, the quarter presented
significant challenges due to extreme weather, including devastating floods in
October and heavy snowfall in late December. These events disrupted mining
operations and delayed the start of commercial production, which is now
anticipated in Q1 2025.

 

We are pleased to share our updated 2025 production guidance, targeting
625-675kt of ore milled and 12,000-13,000koz of AgEq produced. Production will
be weighted towards the second half of 2025 as we continue the ramp up to
nameplate capacity. Additionally, we have released production guidance for
2026 and the LOM average, highlighting the remarkable potential of the Vares
Silver Operation. Our expansion plans remain a priority, with the Ausenco
study demonstrating the ability to increase current nameplate production
capacity at the Vares Processing Plant from 0.8Mtpa to 1.3Mtpa. We look
forward to updating stakeholders in the coming months on the underground mine
expansion required to support this growth.

 

As a business, we continue to invest in our workforce, skills, and operations.
Both the Rupice Mine and Vares Processing Plant are operating 24/7. I am
optimistic about the year ahead as we work towards the consistent delivery of
product to market."

 

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the
"Company") is pleased to provide an update on mining and processing activities
at the Vares Silver Operation in Bosnia and Herzegovina over Q4 2024.

 

1.     OPERATIONS

 

Health & Safety

At the end of Q4 2024, the 12-month rolling Lost Time Injury Rate ('LTIFR')
and Total Recordable Injury Rate ('TRIFR') were 0.45 and 1.05 respectively
compared to Q3 2024 where LTIFR and TRIFR were 1.75 and 1.05, respectively
(frequency rate = (LTI or RI) * 200,000 / total hours).

Q4 2024 Production

 

                         Q2      Q3       Q4       FY 2024
 Ore mined (t)           8,284   63,053   73,215   145,755
 Ore milled (t)          9,211   19,308   47,233   76,402
 Head grade - Ag (g/t)   96      239      234      217
 Head grade - Au (g/t)   0.6     2.6      2.6      2.3
 Head grade - Zn (%)     2.2     8.6      7.5      7.1
 Head grade - Pb (%)     1.6     5.6      4.8      4.6
 Recoveries - Ag (%)     76      85       94       90
 Recoveries - Au (%)     45      65       74       71
 Recoveries - Zn (%)     29      56       63       60
 Recoveries - Pb (%)     59      55       68       64
 Ag/Pb concentrate (kt)  0.3     1.4      3.8      5.5
 Grade - Ag (g/t)        2,322   2,131    2,185    2,177
 Grade - Au (g/t)        7.2     13.6     14.1     13.7
 Grade - Pb (%)          32.9    41.3     41.1     40.8
 Zn concentrate (kt)     0.1     2.1      4.8      7.1
 Grade - Ag (g/t)        602     411      427      425
 Grade - Au (g/t)        5.1     5.8      7.3      6.8
 Grade - Zn (%)          44.9    44.4     46.2     45.7
 Contained - Ag (oz)     21,722  126,376  333,148  481,245
 Contained - Au (oz)     81      1,021    2,859    3,961
 Contained - Zn (t)      58      931      2,238    3,226
 Contained - Pb (t)      85      594      1,561    2,240

* Recoveries and contained metal are only into payable concentrates

 

 

Figure 1: Silver equivalent produced (koz)

* Silver equivalent (AgEq) assumes $25/oz Ag, $2,000/oz Au, $2,500/t Zn,
$2,000/t Pb, $2,000/t Cu, $2,000/t Sb

 

In Q4 2024, 73kt of ore was mined and in FY 2024, 146kt of ore was mined. A
severe snowfall in late December affected the entire Balkan region and
consequently mining operations at Rupice Mine were disrupted for five days.
The transportation of ore and concentrate was hindered by blocked roads and
communications and power systems were impacted by outages across the country.
Mining resumed safely, with operations back to normal, running 24/7.

 

Due to the adverse weather causing a break in production, commercial
production (as previously stated as 75% of nominal plant throughput sustained
over a 21-day continuous period) is now expected to be reached during Q1 2025.

 

There was a total of 675m of underground development in Q4, a 24% decrease
compared to Q3 2024 at 890m. Development rates were below the 300m/month run
rate target in October and December due to the weather disruptions, power
outages and a shortage of key consumables. In total, there was 3km of
underground development completed in 2024.

 

Milled tonnage was also lower than expected in Q4, with 47kt of ore milled in
Q4 and 76kt of ore milled in FY 2024. This was due to crusher issues with wet
fine material, now resolved by the addition of pre-screening. Since installing
the new screen, the crushing plant has been operating at a rate of 40kt per
month.

 

The ore stockpile at Rupice contained approximately 61kt at 31 December 2024.

 

Metal recoveries continue to improve quarter-over-quarter, in line with
expectations during ramp up.

 

 

Infrastructure

 

Due to the railway line being damaged in the severe storm as announced on 9
October: Production Unaffected by Regional Storm e9de2a16-cc2.pdf
(https://api.investi.com.au/api/announcements/adt/e9de2a16-cc2.pdf) ,
concentrate product continues to be trucked by road to Ploce Port. It is now
expected that the rehabilitation of the railway line will be completed
imminently, with rail transportation of concentrate to recommence in Q1.

 

 

 

Tailings

 

On 24 October all permits for Phase I of the Veovaca TSF were received from
the Federal Ministry of Energy, Mining, and Industry of Bosnia and Herzegovina
('FMERI'). Construction is well advanced and first tailings disposal is
scheduled for Q1 2025, aligning with the remaining capacity of the operating
temporary TSF.

 

 

2.     2025 MARKET GUIDANCE

 

 

Production guidance for 2025 and 2026 is as outlined below:

 

 Production Guidance  H1 2025        H2 2025        FY 2025          FY 2026        LOM Average
  Milled (kt)         250-275        375-400        625-675          800-850        800
  Ag (koz)             2,200-2,300    3,300-3,400    5,500-5,700      4,800-5,000   4,400
  Au (koz)             10-12          15-18          25-30            25-30         20
  Zn (kt)              10-12          18-20          28-32           38-42          33
  Pb (kt)              7-8            11-12          18-20           22-24          23
  AgEq (koz)           4,800-5,200    7,200-7,800    12,000-13,000   13,000-14,000  11,500

Note: Metal production represents contained metal in payable concentrates.
Silver equivalent (AgEq) assumes $25/oz Ag, $2,000/oz Au, $2,500/t Zn,
$2,000/t Pb, $2,000/t Cu, $2,000/t Sb.

 

 

Cost guidance for 2025 is as outlined below:

 

 Cost Guidance            FY 2025
 Operating Costs ($M)     75
 Site G&A ($M)            15
 Offsite Costs ($M)       25
 Project Capital ($M)     20
 Sustaining Capital ($M)  5
 Exploration ($M)         5

 

 

Cost guidance for 2025 has been issued based on Adriatic's inaugural
production budget and the current run rate observed in Q4 2024. As production
ramps up to reach nameplate capacity by the second half of 2025, the Company
will continue to identify and implement cost-saving measures.

 

 

 

 

 

Expansion plans

 

In Q4, Ausenco completed a comprehensive technical review to assess the
potential for increasing throughput at the Vares Processing Plant. The review
confirmed that no material capital expenditure is needed to raise throughput
from the nameplate capacity of 0.8Mtpa to 1Mtpa, while approximately $25m of
growth capital would be required to achieve 1.3Mtpa.

 

This proposed increase in plant throughput aligns with plans to boost mine
production, following the expansion of the Ore Reserve at Rupice Northwest to
13.8Mt announced on 20 December 2023: Updated Ore Reserves Estimate for Rupice
accaf3e4-0f7.pdf
(https://api.investi.com.au/api/announcements/adt/accaf3e4-0f7.pdf) . A plan
for enhancing underground mine production will be completed in 2025. The
Company plans to provide an update in the coming months outlining this organic
growth opportunity and its alignment within the broader corporate strategy.

 

 

 

3.     EXPLORATION & GRADE CONTROL DRILLING

 

Rupice underground grade control drilling completed 1,332m from 9 holes in Q4.
Drilling results continue to confirm and refine the Rupice Resource Model and
have modified a previously interpreted fault control on ore with thickening of
mineralization due to folding. Fold thickening of the orebody is associated
with better grades than the Ore Reserve and has been a significant outcome of
completing tighter 12.5m to 15m spaced drill fans. Assay results have
confirmed the higher grades in the core of the fold, with a mantle of lower
grade and fringe of mineralized waste.

 

The 2024 Rupice infill and step-out resource drilling program was completed
with results being incorporated into the updated mineral resource estimate to
be published in the Company's annual report.

 

 

 

4.     CORPORATE

 

On 17 October, Laura Tyler was appointed permanent Managing Director and Chief
Executive Officer of Adriatic (having been appointed on an interim basis on 9
August). Ms Tyler has a wealth of industry knowledge with over 30 years'
experience in mining, and is a specialist in technical, technology and safety
applications for Tier 1 projects globally.

On 3 October, Mirco Bardella was appointed to the Board of Directors as a
Non-Executive Director and Chair of the Audit and Risk Committee and Sandra
Bates was appointed Senior Independent Director.

 

5.     FINANCE

 

Cash balance at 31 December 2024 was $21m with approximately $3m in finished
concentrate. The $25m concentrate prepayment arrangement with Trafigura has
been completed, with funds received in January 2025. The current cash balance
as at 27 January is $46m.

 

The first quarterly debt repayment of approximately $19m to Orion Mine Finance
is scheduled for 31 March 2025, with quarterly repayments thereafter.

 

 

Summary of Cash flow

A summary of operating, investing and financing cash flows during the Quarter,
before movements in exchange rates, as reported in the Appendix 5B Cash Flow
Report, is as follows:

                                            USD'000
 Net cash from operating activities         16,574
 Net cash used in investing activities                   (18,457)
 Net cash used in financing activities      (893)
 Effects of movement in exchange rates      (333)
 Net decrease in cash and cash equivalents  (3,109)

 

Payments to Related Parties

During the Quarter, Adriatic paid an aggregate total of $551k to Directors, or
companies controlled by them, consisting of salaries and fees, associated
services used/provided by the Company. This is disclosed in Item 6 of the
accompanying Appendix 5B Cash Flow Report.

 

6.     TENEMENT HOLDINGS

In accordance with ASX Listing Rule 5.3.3, the Company's tenements as at 31
December 2024 are set out below. The Company holds a 100% interest in all
concession agreements and licences via its wholly owned subsidiaries with the
exception of the Raska (Suva Ruda) licence held by Deep Research d.o.o. which
is subject to changes that occurred during 2024.

Adriatic Metals PLC has entered into a sale and purchase agreement with Deep
Research d.o.o. and its shareholders which provides for the transfer of the
Raska (Suva Ruda) licence to a newly established company owned 100% by
Adriatic Metals PLC. It has also been agreed that the previous option
agreement over Deep Research d.o.o. will be terminated as part of the licence
transfer.

                         Concession document        Registration number    License holder                     Concession name                                     Area (km(2))  Date granted  Expiry date
 Bosnia and Herzegovina  Concession Agreement       No.:04-18-21389-1/13   Eastern Mining d.o.o.              Veovaca1                                            1.08          12-Mar-13     12-Mar-38
                         Veovaca 2                                         0.91                                                                                   12-Mar-13                   12-Mar-38
                         Rupice-Jurasevac, Brestic                         0.83                                                                                   12-Mar-13                   12-Mar-38
                         Annex 3 & 6 Area           No.: 04-18-21389-3/18  Eastern Mining d.o.o.              Rupice - Borovica                                   4.52          14-Nov-18     12-Mar-33
                         Extension                                         Veovaca - Orti - Seliste - Mekuse                                                      1.32          14-Nov-18     12-Mar-33
                         Annex 5 - Area             No: 04-18-14461-1/20   Eastern Mining d.o.o.              Orti-Selište-Mekuše- Barice- Smajlova Suma-Macak    19.33         3-Dec-20      3-Dec-50
                         Extension                                         Droskovac - Brezik                                                                     2.88          3-Dec-20      3-Dec-50
                                                                           Borovica - Semizova Ponikva                                                            9.91          3-Dec-20      3-Dec-50
                         Concession Agreement       No: 04-14-5359-3/22    Eastern Mining d.o.o.              Saski Do                                            1.28          19-Jul-22     19-Jul-25
 Serbia                  Exploration License        310-02-1721/2018-02    Adriatic Metals d.o.o.             Kizevak                                             1.84          3-Oct-19      29-May-26
                         Exploration License        310-02-1722/2018-02    Adriatic Metals d.o.o.             Sastavci                                            1.44          7-Oct-19      29-May-26
                         Exploration License        310-02-1114/2015-02    Adriatic Metals d.o.o              Kremice                                             8.54          21-Apr-16     07-Jul-25
                         Exploration License        310-02-00060/2015-02   Deep Research d.o.o.               Rudno Polje Raska                                   81.39         28-Dec-15     24-Oct-24**
                         Exploration License        310-02-01670/2021-02   Adriatic Metals d.o.o.             Kaznovice                                           37.1          11-Oct-21     22-Nov-24*

*Request for 1(st) extension submitted on time. Pending approval.

**Pending Ministry decision on getting a two year extension for preparation of
reserves elaborate which excludes any geological exploration work. Upon
approval, plan is to split the exploration area into 2 new areas and continue
exploration work.

 

-ends-

 

Authorised by Laura Tyler, CEO and Managing Director of Adriatic Metals.

For further information please visit: www.adriaticmetals.com
(http://www.adriaticmetals.com/) ; email: info@adriaticmetals.com
(mailto:info@adriaticmetals.com) , @AdriaticMetals
(https://twitter.com/AdriaticMetals) on Twitter; or contact:

 

 Adriatic Metals PLC
 Klara Kaczmarek                                   Tel: +44 (0) 7859 048228

 GM - Corporate Development                        Klara.kaczmarek@adriaticmetals.com (mailto:Klara.kaczmarek@adriaticmetals.com)

 Burson Buchanan                                   Tel: +44 (0) 20 7466 5000
 Bobby Morse / Christopher Jones                   adriatic@buchanan.uk.com (mailto:adriatic@buchanan.uk.com)
 Morgans Corporate Limited
 Rob Douglas / Sam Warriner / Mitch Duffy          Tel: +61 7 3334 4888

 RBC Capital Markets
 Farid Dadashev / James Agnew / Jamil Miah         Tel: +44 (0) 20 7653 4000

 Stifel Nicolaus Europe Limited
 Ashton Clanfield / Callum Stewart / Varun Talwar  Tel: +44 (0) 20 7710 7600

 Morrow Sodali
 Cameron Gilenko                                   Tel: +61 466 984 953

 

 

MARKET ABUSE REGULATION DISCLOSURE

The information contained within this announcement is deemed by the Company
(LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information for the
purpose of Article 7 of EU Market Abuse Regulation (EU) No. 596/2014 as it
forms part of UK domestic law by virtue of the European Union (Withdrawal) ACT
2018, as amended. The person ‎responsible for arranging and authorising the
release of this announcement on behalf of the Company is Laura Tyler, CEO and
Managing Director.

 

 

 

 

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

 Name of entity
 ADRIATIC METALS PLC
 ABN            Quarter ended ("current quarter")
 624 403 163    31 DECEMBER 2024

 

 Consolidated statement of cash flows                                                                         Current quarter                     Year to date
                                                                                                    USD'000

                                                                                                                                                  (12 months)
                                                                                                                                        USD'000
 1.                   Cash flows from operating activities
 1.1                  Receipts from customers                                                       26,824                              27,898
 1.2                  Payments for
                      a)    exploration & evaluation (if expensed)                                  (122)                               (3,964)
                      b)    development                                                             -                                   -
                      c)     production                                                             -                                   -
                      d)    staff costs                                                             (6,750)                             (27,923)
                      e)    administration and corporate costs                                      (5,706)                             (22,297)
 1.3                  Dividends received (see note 3)                                               -                                   -
 1.4                  Interest received                                                             199                                 637
 1.5                  Interest and other costs of finance paid                                      -                                   -
 1.6                  Income taxes paid                                                             -                                   -
 1.7                  Government grants and tax incentives                                          -                                   -
 1.8                  Other - VAT refund / (outflow)                                                2,129                               14,496
 1.9                  Net cash from / (used in) operating activities                                16,574                              (11,153)

 2.                   Cash flows from investing activities
 2.1                  Payments to acquire:
                      a)   entities                                                                 -                                   -
                      b)   tenements                                                                -                                   -
                      c)    property, plant and equipment                                           (17,444)                            (78,671)
                      d)   exploration & evaluation (if capitalised)                                (1,013)                             (7,764)
                      e)   investments                                                              -                                   -
                      f)    other non-current assets                                                -                                   -
 2.2                  Proceeds from the disposal of:
                             entities                                                               -                                   -
                             tenements                                                              -                                   -
                             property, plant and equipment                                          -                                   -
                             investments                                                            -                                   -
                             other non-current assets                                               -                                   -
 2.3                  Cash flows from loans to other entities                                       -                                   -
 2.4                  Dividends received (see note 3)                                               -                                   -
 2.5                  Other                                                                         -                                   (4,348)
 2.6                  Net cash from / (used in) investing activities                                (18,457)                            (90,783)

 3.                   Cash flows from financing activities
 3.1                  Proceeds from issues of equity securities (excluding convertible debt         -                                   50,000
                      securities)
 3.2                  Proceeds from issue of convertible debt securities                            -                                   2,553
 3.3                  Proceeds from exercise of options and warrants                                -                                   -
 3.4                  Transaction costs related to issues of equity securities or convertible debt  -                                   (2,418)
                      securities
 3.5                  Proceeds from borrowings                                                      -                                   30,000
 3.6                  Repayment of borrowings                                                       (893)                               (892)
 3.7                  Transaction costs related to loans and borrowings                             -                                   (772)
 3.8                  Dividends paid                                                                -                                   -
 3.9                  Other                                                                         -                                   -
 3.10                 Net cash from / (used in) financing activities                                (893)                               78,471

 4.                   Net increase / (decrease) in cash and cash equivalents for the period
 4.1                  Cash and cash equivalents at beginning of period                              23,807                              44,856
 4.2                  Net cash from / (used in) operating activities (item 1.9 above)               16,574                              (11,153)
 4.3                  Net cash from / (used in) investing activities (item 2.6 above)               (18,457)                            (90,783)
 4.4                  Net cash from / (used in) financing activities (item 3.10 above)              (893)                               78,471
 4.5                  Effect of movement in exchange rates on cash held                             (333)                               (693)
 4.6                  Cash and cash equivalents at end of period                                    20,698                              20,698

 5.   Reconciliation of cash and cash equivalents                                           Current quarter                     Previous quarter
      at the end of the quarter (as shown in the consolidated statement of cash
USD'000
USD'000
      flows) to the related items in the accounts
 5.1  Bank balances                                                               20,698                              23,807
 5.2  Call deposits                                                               -                                   -
 5.3  Bank overdrafts                                                             -                                   -
 5.4  Other (provide details)                                                     -                                   -
 5.5  Cash and cash equivalents at end of quarter (should equal item 4.6 above)   20,698                              23,807

 

 6.   Payments to related parties of the entity and their associates                           Current quarter
                                                                                     USD'000
 6.1  Aggregate amount of payments to related parties and their associates included  551
      in item 1
 6.2  Aggregate amount of payments to related parties and their associates included  -
      in item 2
 Note: a description of, and an explanation for, the above payments is included
 in the quarterly activities report.

 

 7.   Financing facilities                                                               Total facility amount at quarter end                     Amount drawn at quarter end
      Note: the term "facility' includes all forms of financing arrangements   USD'000                                                  USD'000
      available to the entity.

      Add notes as necessary for an understanding of the sources of finance
      available to the entity.
 7.1  Loan facilities                                                          142,500                                                  142,500
 7.2  Credit standby arrangements                                              -                                                        -
 7.3  Other (please specify)                                                   -                                                        -
 7.4  Total financing facilities                                               142,500                                                  142,500

 7.5  Unused financing facilities available at quarter end                                                                              -
 7.6  Include in the box below a description of each facility above, including the
      lender, interest rate, maturity date and whether it is secured or unsecured.
      If any additional financing facilities have been entered into or are proposed
      to be entered into after quarter end, include a note providing details of
      those facilities as well.
 The $142.5m Orion Debt Financing package consists of $120m Senior Secured Debt
 and $22.5m Copper Stream arrangement. The first two tranches of $30m of the
 $120m Senior Secured Debt were drawn down in December 2022 and February 2023
 and the third tranche was drawn down in April 2023 The $22.5m Copper Stream
 deposit was received in February 2023. The fourth $30m tranche of the Senior
 Secured Debt was drawn down in January 2024.

 

 

 8.   Estimated cash available for future operating activities                            USD'000
 8.1  Net cash from / (used in) operating activities (Item 1.9)                 16,574
 8.2  Net cash from / (used in) investing activities (Item 2.6)                 (18,457)
 8.3  Total relevant outgoings (Item 8.1 + Item 8.2)                            (1,883)
 8.4  Cash and cash equivalents at quarter end (Item 4.6)                       20,698
 8.5  Unused finance facilities available at quarter end (Item 7.5)             -
 8.6  Total available funding (Item 8.4 + Item 8.5)                             20,698
 8.7  Estimated quarters of funding available (Item 8.6 divided by Item 8.3)    11.0
 8.8  If Item 8.7 is less than 2 quarters, please provide answers to the following
      questions:
      1.         Does the entity expect that it will continue to have the
      current level of net operating cash flows for the time being and, if not, why
      not?
      Answer: N/A

      2.         Has the entity taken any steps, or does it propose to take
      any steps, to raise further cash to fund its operations and, if so, what are
      those steps and how likely does it believe that they will be successful?
      Answer: N/A

      3.         Does the entity expect to be able to continue its
      operations and to meet its business objectives and, if so, on what basis?
      Answer: N/A

 

Compliance statement

1        This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters
disclosed.

 

Date:                     28 January 2025

 

Authorised by:       Audit and Risk Committee

(Name of body or officer authorising release - see note 4)

 

Notes

1.        This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's activities
for the past quarter, how they have been financed and the effect this has had
on its cash position. An entity that wishes to disclose additional information
over and above the minimum required under the Listing Rules is encouraged to
do so.

2.        If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.

3.        Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.

4.        If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If it has
been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - e.g. Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".

5.        If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council's Corporate
Governance Principles and Recommendations, the board should have received a
declaration from its CEO and CFO that, in their opinion, the financial records
of the entity have been properly maintained, that this report complies with
the appropriate accounting standards and gives a true and fair view of the
cash flows of the entity, and that their opinion has been formed on the basis
of a sound system of risk management and internal control which is operating
effectively.

 

 

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