Berkeley Energia - Quarterly Report December 2022
31/01/2023 07:00
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RNS Number : 3455O Berkeley Energia Limited 31 January 2023
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 31 January 2023
Quarterly Report December 2022
Highlights:
· Spanish Advisory Committee
During the quarter, an Advisory Committee to the Board of Berkeley Energia
Limited's ("Berkeley" or the "Company") wholly owned Spanish subsidiary,
Berkeley Minera España S.L.U. ("BME"), which holds the Salamanca Project
("Salamanca" or "Project"), was established.
The Advisory Committee is comprised of Miguel Riaño, Rafael Miranda and Jaime
García-Legaz, all prominent, highly experienced, and well-regarded Spanish
businessmen with extensive networks.
The Advisory Committee has substantially strengthened Berkeley's position in
Spain, with the committee members' collective corporate, commercial and
operating expertise plus extensive business and government networks greatly
assisting the Company as it continues to focus on resolving the current
permitting situation, and ultimately advancing the Project towards production.
· Project Update
In November 2022, the Company announced that it had submitted a written
notification of an investment dispute to the Prime Minister of Spain and the
Ministry for the Ecological Transition and the Demographic Challenge
("MITECO") informing the Kingdom of Spain of the nature of the dispute and the
Energy Charter Treaty ("ECT") breaches, and that it proposes to seek prompt
negotiations for an amicable solution pursuant to article 26.1 of the ECT.
In November 2021, the Company received formal notification from MITECO that it
had rejected the Authorisation for Construction for the uranium concentrate
plant as a radioactive facility ("NSC II") at the Company's Salamanca project.
This decision followed the unfavourable report for the grant of NSC II issued
by the Board of the Nuclear Safety Council ("NSC") in July 2021.
The notification of an investment dispute was necessary in order to preserve
the Company's rights to initiate international arbitration should the dispute
not be satisfactorily resolved.
A study evaluating the design, permitting, construction and operation of a
solar power system at the Retortillo site was initiated during the quarter.
The Company continued its strong engagement with key stakeholders at a local,
regional and federal level in Spain during the quarter.
· Exploration
A drilling program, comprising five reverse circulation ("RC") holes for a
total of 282m, designed to test the tin-lithium anomaly defined by soil
sampling at the Company's Investigation Permit, Conchas, was completed during
the quarter. Assay results are pending.
· Global Nuclear Power and Uranium Market:
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter, with select recent activity and updates including the
following:
· Spain - Spain's seven operating nuclear reactors were reported to
have generated 20.25% of the country's electricity in 2022 with average
capacity factor of the units being 90%. It was noted that "with just 7117 MWe
of installed capacity, 6% of the total, nuclear power generated over 20% of
the electricity, a consistent and consecutive figure for over a decade."
Spanish nuclear power plants produced a total of 55.9 TWh of electricity in
2022, 3.6% more than in 2021.
· United Kingdom - A new nuclear power plant to be built in Suffolk
was approved by the UK government. The UK government has pledged to invest
£700 million in the project (50% stakeholder), which also includes
Electricite de France, as well as committing to advancing additional nuclear
power projects as incorporated in the proposed Energy Bill. Great British
Nuclear is being established in order to oversee nuclear new builds.
· Netherlands - The lower house of the Dutch Parliament adopted a
proposal to pursue the construction of two nuclear power reactors which the
Dutch Cabinet hopes to be in operation by 2035. The Netherlands currently
operate a single reactor which entered commercial operation in 1973, located
at Borssele, the likely site for the expansion.
· Germany - Announced it will keep all three of its nuclear plants
operating until April 2023 to ensure the country's energy supply remains
robust amid uncertainty over Russian gas supply.
· Poland - Announced that it had selected Westinghouse Electric to
build the country's initial nuclear power plant. The Polish government has
been seeking partners to develop 6-9 GWe of nuclear capacity by the early
2040s and may ultimately order a total of six Westinghouse reactors.
· Japan - Confirmed a major nuclear power policy shift in December
to tackle an energy crisis more than a decade after the 2011 Fukushima
disaster prompted it to idle most of its reactors. Quake-prone Japan, which
previously said it had no plans to build new reactors, will now seek to
replace decommissioned ones and extend the lifespan of others, with the
government aiming to boost nuclear to as much as 22% of its power mix by 2030.
· India - The Indian government presented its road map to attain
net-zero carbon emissions by 2070 at the recent UN Convention on Climate
Change. The national plan calls for a focus on renewable energy sources
including solar, wind and hydro power supplemented by a "three-fold rise in
nuclear installed capacity by 2032."
Other developments in the uranium market during the quarter included:
· Spain's ENUSA says it and Westinghouse Electric Company has
formalised their cooperation agreement for the manufacture of water-water
energetic reactor ("VVER") fuel. The two companies have reached an agreement
that will allow operators to diversify the supply of nuclear fuel and reduce
dependence on the current supplier, Russia, strategically complying with the
will of the European Union to provide a real alternative in the supply made
out of fuel. The ENUSA factory in Salamanca has begun the installation of the
new production line to be ready by the end of the year.
· Finnish mining company, Terrafame, announced plans to start
recovering natural uranium as a by-product of zinc and nickel production at
its Sotkamo mine in the north-east of the country by the summer of 2024. The
state-owned company reported that it has completed a feasibility study related
to uranium recovery and has decided to start preparing its operations for the
uranium recovery for next year.
· Cameco reported the first packaged uranium from McArthur River /
Key Lake following the February 2022 announcement that the production complex
would be restarted after a four year shut-down. McArthur River / Key Lake is
expected to reach steady-state production of 15 million pounds U(3)0(8) in
2024.
· The latest World Energy Outlook assessment published by the
International Energy Agency ("IEA"), underscores the crucial role which
nuclear power must assume over the next three decades. Nuclear power increases
under all three of the IEA government policy-related scenarios (Stated
Policies Scenario; Announced Pledges Scenario, and; Net Zero Emissions by 2050
Scenario).
The report observes that "As markets rebalance, renewables, supported by
nuclear power, see sustained gains." Under the Net Zero Emissions by 2050
Scenario, an average of 24 GWe/year must be added over the 2022-2050 period,
more than doubling current nuclear capacity (compounded average annual growth
rate = 2.6%).
· Spot market activity reportedly slowed in the December quarter
with current term prices ending the quarter at US$47.75 per pound. Longer-term
uranium price indicators continued to remain stable and closed at the end of
December at US$51.00 per pound (Long-Term); US$56.50 per pound (3-year forward
price); and US$60.00 per pound (5-year forward price).
· IBEX SMALL CAP® index
During the quarter, Berkeley was included in the IBEX SMALL CAP® index on the
Spanish Stock Exchange. The index adjustment took effect on 19 December 2022.
· Balance Sheet
The Company is in a strong financial position with A$79 million in cash
reserves and no debt.
For further information please contact:
Robert
Behets
Franciso Bellón
Acting Managing Director
Executive Director
+61 8 9322
6322
+34 923 193 903
info@berkeleyenergia.com (mailto:info@berkeleyenergia.com)
Salamanca Project Summary
The Salamanca Project is being developed in an historic uranium mining area in
Western Spain about three hours west of Madrid.
The Project hosts a Mineral Resource of 89.3Mlb uranium, with more than two
thirds in the Measured and Indicated category. In 2016, Berkeley published the
results of a robust Definitive Feasibility Study ("DFS") for Salamanca
confirming that the Project may be one of the world's lowest cost producers,
capable of generating strong after-tax cash flows.
In 2021, the Company received formal notification from MITECO that it had
rejected the NSC II application at Salamanca. This decision followed the
unfavourable NSC II report issued by the NSC in July 2021.
Berkeley strongly refutes the NSC's assessment and, in the Company's opinion,
the NSC has adopted an arbitrary decision with the technical issues used as
justification to issue the unfavourable report lacking in both technical and
legal support.
Berkeley submitted documentation, including an 'Improvement Report' to
supplement the Company's initial NSC II application, along with the
corresponding arguments that address all the issues raised by the NSC, and a
request for its reassessment by the NSC, to MITECO in July 2021.
Further documentation was submitted to MITECO in August 2021, in which the
Company, with strongly supported arguments, dismantled all of the technical
issues used by the NSC as justification to issue the unfavourable report. The
Company again restated that the project is compliant with all requirements for
NSC II to be awarded and requested its NSC II Application be reassessed by the
NSC.
In addition, the Company requested from MITECO access to the files associated
with the Authorisation for Construction and Authorisation for Dismantling and
Closure for the radioactive facilities at La Haba (Badajoz) and Saelices El
Chico (Salamanca), which are owned by ENUSA Industrias Avandas S.A., in order
to verify and contrast the conditions approved by the competent administrative
and regulatory bodies for other similar uranium projects in Spain.
Based on a detailed comparison of the different licensing files undertaken by
the Company following receipt of these files, it is clear that Berkeley, in
its NSC II submission, has been required to provide information that does not
correspond to: (i) the regulatory framework, (ii) the scope of the current
procedural stage (i.e., at the NSC II stage), and/or (iii) the criteria
applied in other licensing processes for similar radioactive facilities).
Accordingly, the Company considers that the NSC has acted in a discriminatory
and arbitrary manner when assessing the NSC II application for the Salamanca
project.
In Berkeley's strong opinion, MITECO has rejected the Company's NSC II
Application without following the legally established procedure, as the
Improvement Report has not been taken into account and sent to the NSC for its
assessment, as requested on multiple occasions by the Company.
In this regard, the Company believes that MITECO have infringed regulations on
administrative procedures in Spain but also under protection afforded to
Berkeley under the ECT, which would imply that the decision on the rejection
of the Company's NSC II Application is not legal.
The Company has previously submitted an administrative appeal against MITECO's
decision under Spanish law in December 2021 which has still not been resolved
to date.
Whilst Berkeley's focus is on resolving the current permitting situation, and
ultimately advancing the Salamanca project towards production, the Company
will continue to strongly defend its position and take all necessary actions
to preserve its rights.
The notification of an investment dispute submitted to the Spanish Government
in November 2022 was necessary in order to preserve the Company's rights to
initiate international arbitration should the dispute not be satisfactorily
resolved. The Company, however, has informed the Spanish Government that it is
prepared to collaborate and remains hopeful that the dispute can be resolved
amicably through prompt negotiations.
The dispute notice is an initial step to request amicable negotiations to
overturn the rejection of NSC II. Berkeley will continue to update the market
in relation to this matter as required.
Project Update:
The Company continued with its commitment to health, safety and the
environment as a priority.
An external audit of the Company's Environmental and Sustainable Mining
Management Systems was successfully carried out by independent consultant
AENOR during the quarter, with no non-compliances and numerous strengths
reported.
As previously reported, Berkeley initiated a study evaluating the design,
permitting, construction and operation of a solar power system at the Project
during the quarter.
The Project's location has a natural abundance of sunlight which is conducive
to solar power generation, which will become a reliable source of low cost and
carbon-free energy for the Project. In addition to making a significant
contribution to reduce carbon emissions, the solar power system will
potentially contribute to reducing the Project operating costs.
The proposed facility will have an installed power of up to 20 MW and will be
able to supply up to 68% of the power requirements at the Project.
During the quarter, contracts for the engineering and design, and
environmental studies were awarded to companies based in Salamanca who are
specialists on the design of solar power systems and environmental studies.
The engineering and design, as well as preparation of all documents required
for submission to relevant authorities, will be completed in approximately 25
weeks, after which the permitting process can commence.
The decision to pursue a solar power system is in line with Berkeley's ongoing
commitment to environmental sustainability and to continue to have a positive
impact on the people, environment and society surrounding the mine.
Exploration:
During the quarter, the Company continued with its exploration program
focusing on battery and critical metals in Spain.
The exploration initiative is targeting lithium, cobalt, tin, tungsten and
rare earths, within the Company's existing tenement package in western Spain.
Further analysis of the mineral and metal endowment across the entire mineral
rich province and other prospective regions in Spain is also being undertaken,
with a view to identifying additional targets and regional consolidation
opportunities.
Whilst Berkeley remains focused on defending its position in relation to the
adverse resolution by MITECO and ultimately advancing the Salamanca project
towards production, the planned battery and critical metals exploration
initiative also facilitates the Company's participation in these important,
rapidly evolving, growth sectors which are integral to the global clean energy
transition.
Investigation Permit Conchas
The Investigation Permit ("I.P.") Conchas is located ~10km south of Berkeley's
Alameda deposit, in the very western part of Salamanca province, close to the
Portuguese border.
The tenement covers an area of ~31km(2) in the western part of the Ciudad
Rodrigo Basin and is largely covered by Cenozoic aged sediments. Only the
north-western part of the tenement is uncovered and dominated by the Guarda
Batholith (Vilar Formoso-Fuentes de Oñoro sector) intrusion. The tenement
hosts a number of sites where small-scale historical tin and tungsten mining
was undertaken. In addition, several mineral occurrences (tin, tungsten,
titanium, lithium) have been identified during historical mapping or stream
sediment sampling programs.
The Company completed initial soil sampling programs in northern and central
portions of the tenement during 2021. The sampling, which was undertaken on a
200m by 200m grid, defined a tin-lithium anomaly covering approximately 1.1km
by 0.7km which correlated with a mapped aplo-pegmatitic leucogranite.
An infill (100m by 100m spacing) and extension soil sampling program was
undertaken to follow-up the 2021 results. The results of the infill program
confirmed the spatial location, scale and tenor of the tin-lithium anomaly
defined in 2021 but failed to extend the anomalism to the east.
The Company has also obtained a report summarising exploration work undertaken
by Billiton PLC on the I.P. Conchas between 1981 and 1983. Billiton's
exploration was focused on tin and tantalum (lithium was not taken into
account) and comprised regional and detailed geological mapping, geochemistry,
trenching and limited drilling.
The results of Berkeley's soil sampling program are encouraging and the
Company has now completed the process of verifying, evaluating and
incorporating the additional historical information contained in the Billiton
report.
A drilling program, comprising five RC holes for a total of 282m, designed to
test the tin-lithium anomaly, was completed during the quarter. Assay results
are pending.
Spanish Advisory Committee:
During the quarter, an Advisory Committee to the Board of Berkeley's wholly
owned Spanish subsidiary, BME, which holds the Project, was established.
The Advisory Committee is comprised of Rafael Miranda, Jaime García-Legaz and
Miguel Riaño, all prominent, highly experienced, and well-regarded Spanish
businessmen with extensive networks.
The Advisory Committee has substantially strengthened Berkeley's position in
Spain, with the committee members' collective corporate, commercial and
operating expertise plus extensive business and government networks greatly
assisting the Company as it continues to focus on resolving the current
permitting situation, and ultimately advancing the Project towards production
Details of the Advisory Committee members are as follows:
Rafael Miranda is a Spanish businessman and former Chief Executive Officer of
Endesa SA, one of Spain's largest electric companies and nuclear power plant
operators. He is credited for expanding Endesa's footprint into Latin America
and positioning the company as an industry leader after Spain's liberalisation
of the electric market. More recently, he was Chairman of ACERINOX, the
Spanish giant steel manufacturing conglomerate and remains a member of the
Board of Directors of Brookfield Asset Management, one of the world's largest
investment funds, as well as a Board Member of other Spanish companies and
Institutions. He is also Honorary Chairman of Eurelectric, the European
Electricity Association, and of APD (Spanish Management Association).
Jaime García-Legaz is a Spanish economist, businessman, executive and
academic. He is an experienced Executive Chairman, Chief Executive Officer and
Company Director with a 28-year career in finance, airport management, IT,
insurance, retail and Government. He is a former Chairman and Chief Executive
Officer at AENA, an IBEX 35 (Spanish stock exchange index) company that
manages airports in Spain and Europe. AENA is 51% Spanish State owned. He was
Secretary of Commerce and Trade in the Government of Spain from 2011 to 2016
and represented Spain on the EU Council of Trade Ministers and the G20 Council
of Ministers.
Miguel Riaño is the Managing Partner of Herbert Smith Freehills ("HSF") in
Spain, specialising in energy, infrastructure, natural resources, environment
and public law matters. He is a highly respected business leader in Spain with
more than 20 years' experience advising major corporations, global investment
banks, equity sponsors and public entities in domestic and cross-border
transactions.
In addition to his involvement in the Advisory Committee, Miguel Riaño has
also been appointed as BME's Company Secretary.
Additional Information on the Global Nuclear Power and Uranium Market:
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter, with a number of important recent developments, including:
· Bulgaria's Energy minister has set out an energy strategy for
2023 to 2053 for the country, which includes plans for two new reactors at
Kozloduy and two at Belene.
· The French Senate has begun discussing a bill aimed at
accelerating procedures related to the construction of new nuclear facilities
near existing nuclear sites and to the operation of existing facilities. Last
year, President Emmanuel Macron proposed the construction of six new EPR2
reactors, with an option for a further eight EPR2 reactors to follow.
· A proposal to amend Sweden's legislation on nuclear power has
been presented by the Prime Minister and Climate and Environment Minister. The
proposed changes would remove the current law limiting the number of reactors
in operation to ten, as well as allowing reactors to be built on new plant
sites, rather than just existing sites.
· The German Transport Minister has called for an independent
commission of experts to decide on a further extension of the operation of the
country's last three nuclear power plants. "We don't need any political
arguments or dogmatism now, we need a professional answer to the question of
how we can ensure a stable and affordable energy supply and at the same time
achieve our climate protection goals" he said in an interview with the
Frankfurter Allgemeine Zeitung. "If we don't want to discuss it politically,
then we have to clarify it scientifically".
· Support for nuclear power in Canada is growing, with nearly twice
as many Canadians now supporting the expansion of nuclear power in the country
as opposing it, new data from the non-profit Angus Reid Institute has found.
· Nuclear energy will account for 34.6% of South Korea's
electricity generation by 2036, compared with 27.4% in 2021, according to the
latest plan finalised by the country's Ministry of Trade, Industry and Energy.
· Japan and the USA plan to work together on the development and
construction of next-generation advanced reactors including small modular
reactors, Japan's Minister of Economy, Trade and Industry and US Secretary of
Energy said after meeting in Washington DC.
· Professional investors expect the price of uranium to rise in the
year ahead as more governments worldwide back nuclear power plants, according
to new research by European ETF platform HANetf. "Coupled with the growing
support from governments worldwide for investing in nuclear energy there is
strong support for the price of uranium which is ultimately supportive of
uranium miners" HANetf said.
· The Japanese government has adopted a plan to extend the
operation of existing nuclear power reactors and replace aging facilities with
new advanced ones. The move is part of a policy that addresses global fuel
shortages following Russia's invasion of Ukraine and seeks to achieve carbon
neutrality by 2050. Further, Japan's Nuclear Regulation Authority has approved
a draft of a new rule that would allow the country's nuclear power reactors to
be operated for more than the current limit of 60 years. The amendment will
require parliamentary approval.
· enCore Energy, Ur Energy and Uranium Energy Corp ("UEC") have
been selected to provide domestically produced uranium to the USA's federal
strategic uranium reserve. Further, UEC won a contract to supply the US
Department of Energy 300,000 pounds of uranium at US$59.50 per pound for US
strategic national uranium reserve (part of first US$75 million of US$1.5
billion plan).
· Bloomberg reports that NSN, India's largest power generator, is
planning to build 20-30GWe of nuclear capacity by 2040, mostly in the form of
100-300MW SMRs. That's between a quarter and a third of the US fleet =
~10-12Mlbs of uranium pa plus initial loads will be higher, plus ~3 years of
inventory = a 50Mlb draw on supply between now and 2040, the timeline sounds
extended but the next generation of mines will be needed to meet supply
growth.
IBEX SMALL CAP® index:
During the quarter, Berkeley was included in the IBEX SMALL CAP® index on the
Spanish Stock Exchange. The index adjustment took effect on 19 December 2022.
The IBEX indices measure the performance of securities listed on the Spanish
Stock Market. The IBEX SMALL CAP® index is a market capitalisation weighted
index adjusted by free float. It is Euro-denominated and calculated in
real-time within the European time zone.
The IBEX SMALL CAP® index is composed of 30 securities listed on the Spanish
Stock Exchanges that follow certain requirements in terms of stock market
capitalisation, free floating capital, and annual rotation of the free float
capitalisation.
The Technical Advisory Committee of the IBEX INDICES reviews and adjusts the
composition of SMALL CAP® index on a biannual basis.
Forward Looking Statements
Statements regarding plans with respect to Berkeley's mineral properties are
forward-looking statements. There can be no assurance that Berkeley's plans
for development of its mineral properties will proceed as currently expected.
There can also be no assurance that Berkeley will be able to confirm the
presence of additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of Berkeley
mineral properties. These forward-looking statements are based on Berkeley's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Berkeley, which could cause actual
results to differ materially from such statements. Berkeley makes no
undertaking to subsequently update or revise the forward-looking statements
made in this announcement, to reflect the circumstances or events after the
date of that announcement.
Competent Persons Statement
The information in this report that relates to the Mineral Resource Estimate
is extracted from the announcement entitled 'Annual Report 2022' dated 31
August 2022, which is available to view on Berkeley's website at
www.berkeleyenergia.com. Berkeley confirms that: a) it is not aware of any new
information or data that materially affects the information included in the
original announcement; b) all material assumptions and technical parameters
underpinning the Mineral Resource Estimate in the original announcement
continue to apply and have not materially changed; and c) the form and context
in which the relevant Competent Persons' findings are presented in this
announcement have not been materially modified from the original announcement.
The information in this report that relates to Exploration Results is
extracted from the announcement entitled 'Quarterly Report June 2022' dated 29
July 2022, which is available to view on Berkeley's website at
www.berkeleyenergia.com. Berkeley confirms that: a) it is not aware of any new
information or data that materially affects the information included in the
original announcement; b) all material assumptions and technical parameters
underpinning the Exploration Results in the original announcement continue to
apply and have not materially changed; and c) the form and context in which
the relevant Competent Persons' findings are presented in this announcement
have not been materially modified from the original announcement.
Appendix 1: Mineral Resource at Salamanca
Deposit Resource Category Tonnes U(3)O(8) U(3)O(8)
Name (Mt) (ppm) (Mlbs)
Retortillo Measured 4.1 498 4.5
Indicated 11.3 395 9.8
Inferred 0.2 368 0.2
Total 15.6 422 14.5
Zona 7 Measured 5.2 674 7.8
Indicated 10.5 761 17.6
Inferred 6.0 364 4.8
Total 21.7 631 30.2
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
Total 20.7 462 21.1
Las Carbas Inferred 0.6 443 0.6
Cristina Inferred 0.8 460 0.8
Caridad Inferred 0.4 382 0.4
Villares Inferred 0.7 672 1.1
Villares North Inferred 0.3 388 0.2
Total Retortillo Satellites Total 2.8 492 3.0
Villar Inferred 5.0 446 4.9
Alameda Nth Zone 2 Inferred 1.2 472 1.3
Alameda Nth Zone 19 Inferred 1.1 492 1.2
Alameda Nth Zone 21 Inferred 1.8 531 2.1
Total Alameda Satellites Total 9.1 472 9.5
Gambuta Inferred 12.7 394 11.1
Salamanca Project Total Measured 9.3 597 12.3
Indicated 41.8 516 47.5
Inferred 31.5 395 29.6
Total (*) 82.6 514 89.3
Appendix 2: Summary of Mining Tenements
As at 31 December 2022, the Company had an interest in the following
tenements:
Location Tenement Name Percentage Interest Status
Spain
Salamanca D.S.R Salamanca 28 (Alameda) 100% Granted
D.S.R Salamanca 29 (Villar) 100% Granted
E.C. Retortillo-Santidad 100% Granted
E.C. Lucero 100% Pending
I.P. Abedules 100% Granted
I.P. Abetos 100% Granted
I.P. Alcornoques 100% Granted
I.P. Alisos 100% Granted
I.P. Bardal 100% Granted
I.P. Barquilla 100% Granted
I.P. Berzosa 100% Granted
I.P. Campillo 100% Granted
I.P. Castaños 2 100% Granted
I.P. Ciervo 100% Granted
I.P. Conchas 100% Granted
I.P. Dehesa 100% Granted
I.P. El Águila 100% Granted
I.P. El Vaqueril 100% Granted
I.P. Espinera 100% Granted
I.P. Horcajada 100% Granted
I.P. Lis 100% Granted
I.P. Mailleras 100% Granted
I.P. Mimbre 100% Granted
I.P. Pedreras 100% Granted
E.P. Herradura* 100% Granted
Cáceres I.P. Almendro 100% Granted
I.P. Ibor 100% Granted
I.P. Olmos 100% Granted
*An application for a 1-year extension at E.P. Herradura was previously
rejected however this decision has been appealed and the Company awaits the
decision regarding its appeal.
Appendix 3: Related Party Payments
During the quarter ended 31 December 2022, the Company made payments of
$196,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (director and consulting fees plus
statutory superannuation).
Appendix 4: Exploration and Mining Expenditure
During the quarter ended 31 December 2022, the Company made the following
payments in relation to exploration and development activities:
Activity $000
Radiological protection and monitoring 3
Permitting related expenditure (including legal dispute expenses) 398
Consultants and other expenditure 252
Payment/(return) of VAT in Spain 21
Total as reported in the Appendix 5B 674
There were no mining or production activities and expenses incurred during the
quarter ended 31 December 2022.
To view all figure and illustrations, please refer to the full announcement at
https://app.sharelinktechnologies.com/announcement/asx/f3e090776bef4e32001451a4ae249bb5
(https://app.sharelinktechnologies.com/announcement/asx/f3e090776bef4e32001451a4ae249bb5)
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
GreenX Metals Limited
ABN Quarter ended ("current quarter")
23 008 677 852 31 December 2022
Consolidated statement of cash flows Current quarter Year to date
$A'000
(6 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (107)* (471)*
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (122) (258)
(e) administration and corporate costs (85) (204)
1.3 Dividends received (see note 3) - -
1.4 Interest received 15 28
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material)
(a) Business Development (80) (141)
(b) Property rental and gas sales 73 96
(c) Arbitration related expenses (862) (1,446)
(d) Receipt of arbitration funding 420 1,187
(e) Occupancy (80) (415)
1.9 Net cash from / (used in) operating activities (828) (1,624)
*includes legal and permitting expenditure and payments made to consultants
(Debiensko technical statutory operations personnel).
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) Entities
(b) Tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation (839) (1,908)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (839) (1,908)
3. Cash flows from financing activities - -
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - -
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4,243 6,108
4.2 Net cash from / (used in) operating activities (item 1.9 above) (828) (1,624)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (839) (1,908)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held - -
4.6 Cash and cash equivalents at end of period 2,576 2,576
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 flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 2,576 4,243
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) 2,576 4,243
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included (166)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities 18,036* 11,935
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities 18,036* 11,935
7.5 Unused financing facilities available at quarter end 6,101
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
On
30
Jun
e
202
0,
the
Com
pan
y
exe
cut
ed
a
Lit
iga
tio
n
Fun
din
g
Agr
eem
ent
(LF
A)
for
US$
12.
3
mil
lio
n
(*n
ow
wor
th
A$1
8.0
mil
lio
n
wit
h
the
mov
eme
nt
of
the
A$
com
par
ed
to
the
$US
)
wit
h
LCM
Fun
din
g
UK
Lim
ite
d a
sub
sid
iar
y
of
Lit
iga
tio
n
Cap
ita
l
Man
age
men
t
Lim
ite
d
(LC
M),
to
pur
sue
dam
age
s
cla
ims
in
rel
ati
on
to
the
inv
est
men
t
dis
put
e
bet
wee
n
Gre
enX
and
the
Pol
ish
Gov
ern
men
t
tha
t
has
ari
sen
out
of
cer
tai
n
mea
sur
es
tak
en
by
Pol
and
in
bre
ach
of
the
Ene
rgy
Cha
rte
r
Tre
aty
and
the
Aus
tra
lia
-
Pol
and
Bil
ate
ral
Inv
est
men
t
Tre
aty
(BI
T).
LCM
wil
l
pro
vid
e
up
to
US$
12.
3mi
lli
on
(~A
$18
.0
mil
lio
n),
den
omi
nat
ed
in
US$
,
in
lim
ite
d
rec
our
se
fin
anc
ing
whi
ch
is
rep
aya
ble
to
LCM
in
the
eve
nt
of
a
suc
ces
sfu
l
Cla
im
or
set
tle
men
t
of
the
Dis
put
e
tha
t
res
ult
s
in
the
rec
ove
ry
of
any
mon
ies
.
If
the
re
is
no
set
tle
men
t
or
awa
rd,
the
n
LCM
is
not
ent
itl
ed
to
any
rep
aym
ent
of
the
fin
anc
ing
fac
ili
ty.
In
ret
urn
for
pro
vid
ing
the
fin
anc
ing
fac
ili
ty,
LCM
sha
ll
be
ent
itl
ed
to
rec
eiv
e
rep
aym
ent
of
any
fun
ds
dra
wn
plu
s
an
amo
unt
equ
al
to
bet
wee
n
two
and
fiv
e
tim
es
the
tot
al
of
any
fun
ds
dra
wn
fro
m
the
fun
din
g
fac
ili
ty
dur
ing
the
fir
st
fiv
e
yea
rs,
dep
end
ing
on
the
tim
e
fra
me
ove
r
whi
ch
fun
ds
hav
e
rem
ain
ed
dra
wn,
and
the
n a
30%
int
ere
st
rat
e
aft
er
the
fif
th
yea
r
unt
il
rec
eip
t
of
dam
age
s
pay
men
ts.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (828)
8.2 (Payments for exploration & evaluation classified as investing activities) (839)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (1,667)
8.4 Cash and cash equivalents at quarter end (item 4.6) 2,576
8.5 Unused finance facilities available at quarter end (item 7.5) 6,101
8.6 Total available funding (item 8.4 + item 8.5) 8,677
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) >5
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 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: Not applicable
8.8.2 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: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
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: 31 January 2023
Authorised by: Company Secretary
(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 - eg 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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