REG - Future Metals NL - Half Year Report
08/03/2022 12:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220308:nRSH0433Ea&default-theme=true
RNS Number : 0433E Future Metals NL 08 March 2022
8 March 2022
Future Metals NL
Half Year Report for the Six Months Ended 31 December 2021
The Board of Future Metals NL (ASX/AIM: FME) ("FME", "Future Metals" or the
"Company") is pleased to announce the Company's unaudited consolidated interim
results for the 6 months to 31 December 2021.
Please see below extracts from the Company's Half Year Report for the period
ended 31 December 2021, being the:
- Directors' Report
- Consolidated Statement of Profit or Loss and Other Comprehensive
Income
- Consolidated Statement of Financial Position
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
A copy of the full Half Year Report is available on the Company's website -
www.future-metals.com.au
For further information please visit www.future-metals.com.au or contact:
Future Metals NL +61 8 9480 0414
Jardee Kininmonth info@future-metals.com.au (mailto:info@future-metals.com.au)
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
James Harris
W H Ireland Limited (UK Broker) +44 (0) 207 220 1670
Harry Ansell/Katy Mitchell
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.
Directors' Report
The Directors present their report for Future Metals NL ("Future Metals" or
the "Company") and its subsidiaries (together the "Group") for the half-year
ended 31 December 2021.
DIRECTORS
The persons who were directors of Future Metals during the half-year and up to
the date of this report (unless stated otherwise) are:
· Justin Tremain - Non-Executive Chairman (appointed 31 January
2022), Non-Executive Director (appointed 11 June 2021)
· Aaron Bertolatti - Finance Director (appointed 4 June 2018)
· Allan Mulligan - Non-Executive Director (appointed 11 June 2021)
· Robert Mosig - Independent Non-Executive Director (appointed 11
June 2021)
· Elizabeth Henson - Independent Non-Executive Director (appointed
21 October 2021)
· Greg Bandy - Executive Chairman (appointed 1 August 2010,
resigned 31 January 2022)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities of the Company during the period were to:
· Carry out exploration on the Company's 100% owned Panton PGM
project in the Kimberley region of Western Australia ("Panton Project");
· Evaluate results received from drilling carried out at the Panton
Project during the period;
· Progress metallurgical test work programs on drill hole samples
from the Panton Project; and
· Carry out detailed review and logging of all information
associated with the Panton Project from prior owners.
REVIEW OF OPERATIONS
Future Metals is an active Australian Platinum Group Metals ("PGM") focussed
explorer pursuing the development of its 100% owned Panton project in the
Kimberley region of Western Australia (the "Panton Project"). The Panton
Project has had significant exploration and metallurgical work completed on it
since 2000. It is host to a JORC Mineral Resource Estimate ("MRE") of 14.32Mt
@ 5.20g/t for 2.4Moz PGM and Gold. The Company's focus is to undertake
sufficient drilling to allow for the remodeling of the pre-existing MRE to
establish a shallow, bulk PGM and nickel resource estimate, continuing near
surface and at depth, other exploration activities and progressing the
understanding of metallurgy in the context of pursuing a bulk mineralization
development strategy. These activities will underpin studies to determine the
development path for the Panton Project.
Panton PGM Project
The 100% owned Panton PGM project is located 60 kilometres north of the town
of Halls Creek in the eastern Kimberly region of Western Australia, a tier one
mining jurisdiction. The project is located on three granted mining licences
and situated just 1 kilometre off the Great North Highway which accesses the
Port of Wyndham.
The Panton PGM Project has a JORC Mineral Resource estimate of 14.32Mt @
4.89g/t PGM, 0.31g/t Au and 0.27% Ni.
The Panton mineralisation occurs within a layered, differentiated
mafic-ultramafic intrusion referred to as the Panton intrusive which is a 10km
long and 3km wide, south-west plunging synclinal intrusion. PGM mineralisation
is hosted within two stratiform chromite reefs, the Upper and Middle reefs,
within the ultramafic sequence.
The Company completed a 6,000m drilling programme at the Panton Project during
the half year to test the lateral extent of PGM and nickel mineralisation at
the Panton deposit. This followed an extensive review of the historical drill
hole assay data and determined that significant mineralisation potential
existed outside the +2 g/t PGE grade envelope used to model the existing MRE.
As part of its review, the Company recognised that historically there was
often no sampling of drill core outside the high-grade chromitite reef and/or
drilling did not extend beyond the upper and middle chromitite reefs through
to the lower chromitite reefs. Following these findings, the Company modified
its initial drilling programme to test the lateral extent of the near-surface
mineralisation at Panton. The Company completed 19 new exploration holes, and
recovered diamond drill core from 33 holes drilled historically by Platinum
Australia Limited, for a total of 52 holes cut and sampled for assaying, to
support an updated MRE. Additionally, the Company completed eight
metallurgical holes to provide samples to be used for flotation and physical
separation test work programmes. Results obtained to date from the historical
review, metallurgical drilling and exploration drilling are set out below.
Historical drill results reported at 0.5g/t PGM3E cut-off grade (maximum 4m
dilution) include:
o 74m @ 1.32g/t PGM(3E) & 0.20% Ni (1.71g/t PdEq) from 111m (PS264)
o 45.5m @ 1.38g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 80.5m (PS177)
o 45.5m @ 1.07g/t PGM(3E) & 0.17% Ni (1.46g/t PdEq) from 51m (PS080)
o 33m @ 3.11g/t PGM(3E) & 0.23% Ni (3.36g/t PdEq) from 69m (PS050-D1)
o 43.5m @ 1.22g/t PGM(3E) & 0.21% Ni (1.60g/t PdEq) from115.4m (PS136)
o 40.02m @ 1.42g/t PGM(3E) & 0.20% Ni (1.82g/t PdEq) from 48m (PS075)
o 28.5m @ 2.62g/t PGM(3E) & 0.21% Ni (2.93g/t PdEq) from 21m (PS069)
o 46m @ 1.15g/t PGM(3E) & 0.16% Ni (1.49g/t PdEq) from 18.5m (PS175)
o 26.1m @ 2.56g/t PGM(3E) & 0.21% Ni (2.87g/t PdEq) from 14.5m (PS067)
o 41.5m @ 1.23g/t PGM(3E) & 0.18% Ni (1.61g/t PdEq) from 29.5m (PS209)
o 35.85m @ 1.55g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 138.5m
(PS028)
o 35m @ 1.21g/t PGM(3E) & 0.16% Ni (1.50g/t PdEq) from 22m (PS109)
o 26m @ 2.13g/t PGM(3E) & 0.21% Ni (2.49g/t PdEq) from 19m (PS068)
o 20.05m @ 1.76g/t PGM(3E) & 0.18% Ni (2.09g/t PdEq) from 1.8m (PS081)
o 25m @ 2.05g/t PGM(3E) & 0.20% Ni (2.39g/t PdEq) from 26m (PS060)
o 37.5m @ 1.58g/t PGM(3E) & 0.20% Ni (1.96g/t PdEq) from 43m (PS107)
o 35.5m @ 1.19g/t PGM(3E) & 0.20% Ni (1.61g/t PdEq) from 38m (PS106)
o 26m @ 1.15g/t PGM(3E) & 0.17% Ni (1.50g/t PdEq) from 46m (PS086)
o 43.55m @ 1.20g/t PGM(3E) & 0.20% Ni (1.60g/t PdEq) from 146.45m
(PS084)
o 45m @ 0.87g/t PGM(3E) & 0.17% Ni (1.29g/t PdEq) from 30m (PS079)
Assay results for the eight metallurgical holes drilled by the Company
included:
o 20.8m @ 5.34g/t PGM (3E) from 89.3m (PS388)
§ including 10.1m @ 9.00g/t PGM (3E) from 92.5m
o 14.8m @ 3.88g/t PGM (3E) from 38.4m (PS384)
§ including 7.8m @ 6.46g/t PGM (3E) from 39.4m
o 11m @ 3.94g/t PGM (3E) from 100m (PS389)
§ including 4.35m @ 5.72g/t PGM (3E) from 103m
o 8m @ 1.98g/t PGM (3E) from 25m (PS382)
§ including 2m @ 4.86g/t PGM (3E) from 25.5m
o 8.4m @ 4.89g/t PGM(3E) (4.90g/t PdEq) from 32.6m (PS383)
o 12.6m @ 2.58g/t PGM(3E) (2.81g/t PdEq) from 54.4m (PS385)
§ including 4.6m @ 5.42g/t PGM(3E) (5.34g/t PdEq) from 54.4m
o 13m @ 1.03g/t PGM(3E) (1.30g/t PdEq) from 43m (PS386)
Subsequent to 31 December 2021, and as announced on 17 February 2022, assay
results were returned for 3 of the 19 exploration holes drilled in the half
year to 31 December 2021 which included:
o 18.27m @ 1.95g/t PdEq (1.58 g/t PGM3E & 0.20% Ni) from 74m (PS394)
o 16m @ 1.56g/t PdEq (1.17 g/t PGM3E & 0.19% Ni) from 23m (PS395)
o 2.6m @ 2.80g/t PdEq (2.46 g/t PGM3E & 0.23% Ni) from 8m (PS393)
o 19.2m @ 1.50g/t PdEq (1.09 g/t PGM3E & 0.19% Ni) from 34m (PS393)
o 30m @ 1.19g/t PdEq (0.72 g/t PGM3E & 0.21% Ni) from 89m (PS393)
Subsequent to 31 December 2021, and as announced on 8 March 2022, assay
results were received for a further two resource definition holes as follows:
o Drill hole PS400 returned an unconstrained bulk intersection of 140.8m @
1.07g/t PdEq3 from 28m down hole including a broad zone of sulphide
mineralisation and intercepts (at a 0.5g/t PGM(3E) cut-off, maximum 4m
internal dilution) of:
o 39.48m @ 1.20 g/t PdEq3 (0.81 g/t PGM3E2 & 0.17% Ni) from 37.1m
o 25.66m @ 1.17 g/t PdEq3 (0.74 g/t PGM3E2 & 0.19% Ni) from 104.34m
o 12.2m @ 1.15g/t PdEq3 (0.66 g/t PGM3E2 & 0.18% Ni) from 135.4m
o Drill hole PS398 also returned broad widths of shallow PGM and nickel
mineralisation, including:
o 20.6m @ 2.14g/t PdEq3 (1.79 g/t PGM3E2 & 0.20% Ni) from 39m
o 11m @ 1.12 g/t PdEq3 (0.72 g/t PGM3E2 & 0.15% Ni) from 64m
o 30.6m @ 1.21 g/t PdEq3 (0.75 g/t PGM3E2 & 0.21% Ni) from 83m
Metallurgical Review and Test Work Programme
During the half year period, the Company's metallurgy consultant, Dr Evan
Kirby of Metallurgical Management Services Pty Ltd ("MMS"), completed a review
of historical work undertaken at Panton by Platinum Australia Limited and
Panoramic Resources Limited, to inform the planning of a new test work
programme. Under the recommendation and guidance of Dr Kirby, in conjunction
with the Company, high-grade and low-grade composite samples were formed from
samples from the eight metallurgical drill holes which are to be utilised by
ALS Laboratories for the new metallurgical test work programme. The focus of
the new test work programme is to understand how lower grade material will
perform under previously successful flotation conditions and optimise such
conditions to improve selectivity and recovery.
Mineral Resources
The Panton PGM Project has a JORC Resource estimate of 14.32Mt @ 5.20g/t for
2.4Moz PGM + Gold (refer Table One).
http://www.rns-pdf.londonstockexchange.com/rns/0433E_1-2022-3-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0433E_1-2022-3-8.pdf)
Table One | Panton JORC 2012 Mineral Resource Estimate
Corporate
Re-Admission to AIM and Key Appointments
The Company's Re-Admission to trading on AIM, a market operated by London
Stock Exchange plc ("AIM") occurred on 21 October 2021. In conjunction with
Re-Admission, the Company appointed a highly credentialed UK-based director to
augment the Company's existing Board of Directors, Ms Elizabeth Henson. Ms
Henson was formerly a senior international private tax partner of
PricewaterhouseCoopers ("PwC") in London, having founded and led PwC's
International Wealth business. Future Metals also engaged WH Ireland Limited
("WH Ireland") as its UK Broker from Re-Admission. WH Ireland are assisting
with broking services, research, market making and investor relations in the
UK.
Adviser Options
On 3 November 2021, the Company issued its nominated adviser, Strand Hanson
Limited, 7,000,000 options, exercisable at a share price of A$0.18 and
expiring on 3 November 2024.
Performance Rights
In accordance with the terms of the Company's Performance Rights Plan and as
approved by shareholders at the Company's general meeting held on 4 June 2021,
7,333,331 Class A Performance Rights, 7,333,334 Class B Performance Rights and
7,333,335 Class C Performance Rights were issued on 13 June 2021.
7,333,331 Class A Performance Rights and 7,333,334 Class B Performance Rights
subsequently vested having met the applicable vesting criteria. The Class C
Performance Rights will vest when the Volume Weighted Average Price over a
period of 20 consecutive trading days on which trades in the Company's shares
are recorded on ASX is at least A$0.25.
On 7 December 2021, Non-Executive Director Elizabeth Henson was issued a total
of 2,000,000 Performance Rights. Such Performance Rights are to be voluntarily
escrowed until 22 June 2023 and will expire on or before 5:00 p.m. (WST) of 11
June 2024. The Performance Rights will vest upon:
a) the Volume Weighted Average Price over a period of 20 consecutive
trading days on which trades in the Company's shares are recorded on ASX
(20-day VWAP) being at least A$0.30; and
b) Ms Henson remaining a Non-Executive Director for a continuous period of
12 months.
No Performance Rights were converted or cancelled during the half-year ended
31 December 2021.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 15 January 2022, 840,001 unlisted options over fully paid ordinary shares
exercisable at A$0.357 lapsed unexercised.
On 31 January 2022, Mr Justin Tremain assumed the role of Non-Executive Chair
following the resignation of Mr Greg Bandy who retired from the Board after
more than 10 years of service.
On 31 January 2022, the Company announced the appointments of Mr Jardee
Kininmonth as Chief Executive Officer ("CEO") and Mr Brian Talbot as
Operational & Technical Lead Adviser. Both Mr Kininmonth and Mr Talbot
joined Future Metals following successful senior management positions with
Galaxy Resources Limited where Mr Kininmonth was Corporate Development Manager
and Mr Talbot was Head of Australian Operations.
2,666,666 Class A Performance Rights and 2,666,667 Class B Performance Rights
were converted into fully paid ordinary shares on 7 February 2022.
On 7 February 2022, the Company issued a total of 3,900,000 Performance Rights
to the CEO and the Operational & Technical Lead. The Performance Rights
will expire at 5:00 p.m. (WST) on or before 31 January 2025. The Performance
Rights will vest as follows:
i. 1,300,000 vesting upon the completion of 12 months of continuous
employment with Future Metals ("Tranche A");
ii. Subject to the vesting of Tranche A, 1,300,000 vesting upon the 20-day
volume weighted average market share price ('VWAP') exceeding A$0.30; and
iii. Subject to the vesting of Tranche A, 1,300,000 vesting upon the Company
announcing the completion of a Pre-Feasibility Study on the Panton PGM Project
that results in the Board making a decision to undertake a Definitive
Feasibility Study on the Panton PGM Project.
On 7 February 2022, the Company issued a total of 1,000,000 Performance Rights
to its Exploration Manager. The Performance Rights will expire at 5:00 p.m.
(WST) on or before 11 June 2024. The Performance Rights will vest as
follows:
i. 333,333 following 12 months of continuous employment;
ii. 333,333 upon delivery of an updated JORC Resource; and
iii. 333,334 upon the 20-day VWAP exceeding A$0.25.
Further to the appointment of Barclay Wells Ltd to assist in the marketing of
the Company and to introduce potential investors on a non-exclusive basis, the
Company issued the following options on 7 February 2022:
i. 3,000,000 exercisable at A$0.20 per share once the 20-day VWAP
exceeds A$0.30;
ii. 3,000,000 exercisable at A$0.20 per share once the 20-day VWAP
exceeds A$0.40; and
iii. 3,000,000 exercisable at A$0.20 per share once the 20-day VWAP
exceeds A$0.50.
All of the options listed above have an expiry date of 22 June 2023.
There have been no other significant events subsequent to the end of the
half-year period to the date of this report which significantly affect the
operations of the Group, the results of those operations or the state of
affairs of the Group in future financial years.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, to provide
the Directors of the Company with an Independence Declaration in relation to
the review of the half-year financial report.
This Independence Declaration forms part of this Directors' report for the
half-year ended 31 December 2021.
This report is signed in accordance with a resolution of the Board of
Directors made pursuant to s.306(3) of the Corporations Act 2001.
Signed on behalf of the Board in accordance with a resolution of the
Directors.
Justin Tremain
Non-Executive Chairman
Perth, Western Australia
8 March 2022
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2021
Continuing Operations
Interest received 3,246 261
Employee and director benefits expense (180,109) -
Professional and Consultants (272,562) -
ASX, AIM and share registry fees 3, 10 (c) (1,776,014) -
Travel expenditure (5,803) -
Share based payment expense 10 (b) (53,299) -
Amortisation/depreciation expense (34,104) -
Unrealised Foreign exchange gain/(loss) 1,813 -
Realised Foreign exchange gain/(loss) (446) -
Other expenses (120,304) (11)
(Loss)/profit before income tax (2,437,582) 250
Income tax expense - -
(Loss)/profit after Income Tax (2,437,582) 250
Other comprehensive loss
Items that may be reclassified to profit or loss
Other comprehensive income/(loss) - -
Other comprehensive income/(loss) for the period net of tax - -
Total comprehensive (loss)/income for the period (2,437,582) 250
(Loss)/profit for the period attributable to:
Members of the parent entity (2,437,582) 250
Non-controlling interests - -
(2,437,582) 250
Total comprehensive (loss)/income for the period attributable to:
Members of the parent entity (2,437,582) 250
Non-controlling interests - -
(2,437,582) 250
(Loss)/profit per share
Basic and diluted (loss)/profit per share (cents) (0.70) 0.003
The above Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
as at 31 December 2021
Current Assets
Cash and cash equivalents 5,601,570 9,555,684
Trade and other receivables 125,515 175,840
Other assets 20,975 -
Total Current Assets 5,748,060 9,731,524
Non-Current Assets
Right of Use Assets 53,421 83,101
Deferred Exploration & Evaluation Expenditure 4 19,148,468 17,020,143
Property, Plant and Equipment 39,817 -
Total Non-Current Assets 19,241,706 17,103,244
Total Assets 24,989,766 26,834,768
Current Liabilities
Trade and other payables 5 1,793,854 2,029,502
Lease Liabilities 49,076 72,404
Total Current Liabilities 1,842,930 2,101,906
Non-Current Liabilities
Lease Liabilities - 12,421
Total Non-Current Liabilities - 12,421
Total Liabilities 1,842,930 2,114,327
Net Assets 23,146,836 24,720,441
Equity
Issued capital 6 29,238,564 29,238,564
Reserves 7 2,653,310 1,789,333
Accumulated losses 8 (8,745,038) (6,307,456)
Total Equity 23,146,836 24,720,441
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
for the half-year ended 31 December 2021
Balance at 12 November 2020 - - - - - -
Total comprehensive loss for the period
Loss for the year - 250 - 250 - 250
Other Comprehensive income/(loss) - - - - - -
Total comprehensive income for the period - 250 - 250 - 250
Transactions with owners in their capacity as owners
Non-controlling interest recognised on acquisition - - - - 3,000,000 3,000,000
Shares issued during the period 12,500,025 - - 12,500,025 - 12,500,275
Balance at 31 December 2020 12,500,025 250 - 12,500,275 3,000,000 15,500,275
Balance at 1 July 2021 29,238,564 (6,307,456) 1,789,333 24,720,441 - 24,720,441
Total comprehensive loss for the period
Loss for the period - (2,437,582) - (2,437,582) - (2,437,582)
Other Comprehensive loss - - - - - -
Total comprehensive loss for the period - (2,437,582) - (2,437,582) - (2,437,582)
Transactions with owners in their capacity as owners
Share based payment (note 10 (a)) - - 863,977 863,977 - 863,977
Balance at 31 December 2021 29,238,564 (8,745,038) 2,653,310 23,146,836 - 23,146,836
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes.
Consolidated Statement of Cash Flows
for the half-year ended 31 December 2021
Cash flows from operating activities
Payments to suppliers and employees (1,798,447) (11)
Interest received 3,246 261
Net cash (used in)/provided by operating (1,795,201) 250
activities
Cash flows from investing activities
Payments for exploration and evaluation (2,114,672) -
Acquisition of property, plant and equipment (44,241) -
Net cash used in investing activities (2,158,913) -
Cash flows from financing activities
Proceeds from issue of shares - 700,025
Net cash provided by financing activities - 700,025
Net (decrease)/increase in cash and cash equivalents (3,954,114) 700,275
Cash and cash equivalents at beginning of period 9,555,684 -
Cash and cash equivalents at the end of the period 5,601,570 700,275
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SSMFFAEESEIDRecent news on Future Metals NL
See all newsREG - AIM - AIM Notice - 23/06/2025
AnnouncementREG - Future Metals NL - Results of Non-Renounceable Entitlement Offer
AnnouncementREG - Future Metals NL - Entitlement Offer Fully Underwritten
AnnouncementREG - Future Metals NL - Entitlement Offer – Extension of Closing Date
AnnouncementREG - Future Metals NL - Entitlement Offer Details for DI Holders
Announcement