REG - Future Metals NL - Results for the Half-Year Ended 31 December 2022
15/03/2023 10:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230315:nRSO0626Ta&default-theme=true
RNS Number : 0626T Future Metals NL 15 March 2023
15 March 2023
Future Metals NL
Results for the Half-Year Ended 31 December 2022
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 2022 (the "Half-Year Report").
Please see below extracts from the Company's full Half-Year Report comprising
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 pdf copy of the full Half-Year Report is available at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0626T_1-2023-3-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0626T_1-2023-3-15.pdf) and
is also available on the Company's website at: www.future-metals.com.au
(http://www.future-metals.com.au)
For further information, please 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) 207 409 3494
James Harris/James Bellman
Panmure Gordon (UK) Limited (UK Broker) +44 (0)207 886 2500
John Prior/Hugh Rich/Soman Thakran
White Noise Communications (Australian IR/PR) +61 400 512 109
Fiona Marshall
FlowComms (UK IR/PR) +44 (0) 789 167 7441
Sasha Sethi
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 by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Key extracts from the Company's Half-Year Report are set our below:
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 2022.
DIRECTORS
The persons who were directors of Future Metals during the half-year and up to
the date of this report (unless stated otherwise) were:
· Justin Tremain - Non-Executive Chairman
· Jardee Kininmonth - Managing Director and Chief Executive Officer
· Allan Mulligan - Non-Executive Director
· Robert Mosig - Non-Executive Director
· Elizabeth Henson - Non-Executive Director
· Aaron Bertolatti - Finance Director (resigned 31 July 2022)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities of the Company during the period were to:
· Undertake development studies and 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 programmes on drill hole samples
from the Panton Project; and
· Carry out detailed review and logging of all information
associated with the Panton Project obtained from prior owners.
REVIEW OF OPERATIONS
Future Metals is an active Australian Platinum Group Metals ("PGM") focused
company pursuing the development of its 100% owned Panton Project in the
Kimberley region of Western Australia, a tier one mining jurisdiction. The
Panton Project has had significant drilling and metallurgical work completed
on it since 2000. It is host to a JORC Mineral Resource Estimate ("MRE") of
6.9Moz PdEq(1) at a grade of 1.66g/t PdEq(1), including a high-grade reef of
3.2Moz PdEq(1) at 3.86g/t PdEq(1) (refer Table One).
Since acquiring the project in June 2021, the Company has undertaken
additional drilling and completed substantial new metallurgical test work, and
is currently progressing a scoping study underpinned by the high grade PGM
reef seeking to deliver a future low-capital and high-grade operation. The
scoping study is examining two pathways: a concentrate-only scenario where a
bulk Ni-PGM concentrate is produced via flotation and sold into the
non-ferrous smelting market, and a downstream integrated scenario where a
concentrate is processed further using hydrometallurgical methods to produce
upgraded PGM and base metals products. In parallel to the study activities on
the existing MRE, the Company has developed and proved its Ni-Cu-PGM sulphide
exploration model through a significant review of historical data, new
geophysical surveys, and exploration drilling. These activities to date have
been successful in demonstrating that the Panton Project is not only host to a
significant PGM deposit, but also has the potential to host a significant
Ni-Cu-PGM sulphide deposit.
Panton Project
The Panton Project is situated on three granted mining licences located just
1km off the Great North Highway which accesses the Port of Wyndham (see Figure
One).
The independent JORC Code (2012) MRE for the Panton Project, as announced on
21 June 2022, is set out in Table One.
PGM-Ni mineralisation occurs within a layered, differentiated mafic-ultramafic
intrusion referred to as the "Panton Intrusive" which is a 12km long and 3km
wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted
within a series of stratiform chromite reefs as well as a surrounding zone of
mineralised dunite within the ultramafic package. The Panton Intrusive is also
highly prospective for Ni-Cu-PGM sulphide mineralisation from multiple
magmatic events.
Table One | Panton Mineral Resource Estimate (JORC Code 2012)(2)
Resource Category Mass Grade Contained Metal
(Mt) Pd Pt Au PGM(3E) (g/t) Ni Cu Co PdEq(2) Pd Pt Au PGM(3E) (Koz) Ni Cu Co PdEq(2)
(g/t) (g/t) (g/t) (%) (%) (ppm) (g/t) (Koz) (Koz) (Koz) (kt) (kt) (kt) (Koz)
Reef Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
Inferred 17.6 1.59 1.49 0.22 3.30 0.23 0.07 193 3.63 895 842 123 1,859 41.1 13.1 3.4 2,046
Subtotal 25.4 1.71 1.61 0.24 3.57 0.24 0.07 192 3.86 1,403 1,318 201 2,922 60.3 18.2 4.9 3,166
Dunite Inferred 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
Subtotal 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
All Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
Inferred 121 0.49 0.43 0.09 1.01 0.18 0.04 152 1.48 1,915 1,667 347 3,929 219.7 43.2 18.4 5,758
Total 129 0.58 0.52 0.10 1.20 0.19 0.04 154 1.66 2,423 2,143 425 4,991 238.8 48.4 19.9 6,879
( )
Notes:
(1) Please refer to the paragraph below for palladium equivalent (PdEq)
calculation.
(2) No cut-off grade has been applied to reef mineralisation and a cut-off of
0.9g/t PdEq has been applied to the dunite mineralisation.
(1) PGM(3E) = Palladium (Pd) + Platinum (Pt) + Gold (Au)
(2) Metal equivalents were calculated according to the follow formulae:
§ Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) +
0.875 x Au(g/t) +1.90394 x Ni(%) + 1.38936 x Cu(%) + 8.23 x Co(%)
§ Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) +
0.933 x Au(g/t) +2.03087 x Ni(%) + 1.481990 x Cu(%) + 8.80 x Co(%)
Figure One | Panton PGM Project's Location
Operational Activities
3D Geophysical Modelling and Targeting
Ground gravity surveying, on a nominal 50m x 50m grid, was completed at the
end of September 2022, covering the entire Panton Intrusion within the Panton
mining licenses for an approximate area of 23km(2). The survey provided a very
high-quality gravity data set. The purpose of the gravity survey was to build
a 3D interpreted geophysical model of the Panton Intrusion structure, in
conjunction with existing magnetic data. This model was then used to validate
the geological model for the Panton Project and importantly, help define
additional drill targets.
The resultant geophysical model confirmed the Company's hypothesis that the
Panton Intrusion has a keel-like geometry (see Figures Two and Three). This is
important as the inferred keel position is the most favourable site for
significant magmatic Ni-Cu-PGM sulphide-rich mineralisation which had not been
previously drill tested. Both the gravity and magnetic models, which are based
on completely independent data sets, were consistent with this keel-like
architecture.
Gravity modelling also identified a large anomaly to the south, positioned
near surface and extending down to approximately 2km in depth, with multiple
shoot-like bedrock electromagnetic ("EM") conductors identified in proximity
to this anomaly which may represent an important new target for the Panton
Project (see Figure Six: Target 5-1 and Target 5-3).
Figure Two | Reef Long Section showing magnetic and gravity anomalies along Figure Three | Reef Cross Section showing magnetic and gravity anomalies along
the Keel Zone encasing and underlying the chromite reef the Keel Zone
Drilling Results Interpretation
Drilling was undertaken during the half-year to 31 December 2022 to test
targets identified from historical drilling, EM surveys, and gravity and
magnetics inversion modelling. The completed drilling successfully
demonstrated a distinct and broad Ni-Cu sulphide enriched zone within the
Panton Intrusive separate to the high-grade reef and the surrounding bulk
mineralisation in the 6.9Moz PdEq(1) MRE.
A total of eight diamond drill holes (PS407-PS414) for approximately 3,275m
were completed, testing for the occurrence of magmatic Ni-Cu-PGM sulphide
mineralisation. As at the date of this report, the Company had received assay
results for seven drill holes (PS407-PS413) with all assay results
demonstrating a distinct and broad Ni-Cu sulphide enriched zone within the
Panton Intrusive separate to the high-grade reef and the surrounding bulk
mineralisation in the MRE.
These broad zones demonstrate the potential for the Panton Intrusion to host
multiple styles of mineralisation in addition to the existing PGM resource,
including a high-grade Ni-Cu deposit analogous to the nearby Savannah Ni-Cu
deposit mined by Panoramic Resources Ltd.
Figure Four | Disseminated sulphide bearing core from hole PS412
Significant Embayment feature 'sulphide trap'
Drill holes PS408-PS410 were drilled adjacent to a potentially significant
embayment feature the Company has identified. Embayment features can act as
'sulphide traps', providing a confined localised volume in which sulphide rich
magma can settle. This untested embayment feature has been identified along
the northwest intrusion contact in multiple datasets, including magnetics and
short wave infra-red imagery. A desktop review of the surface expression of
this embayment area further indicates that it has been subject to increased
weathering which in turn can be an indicator of gossanous material,
potentially related to sulphide mineralisation. Historic stream sediments have
identified two highly anomalous coincident nickel-copper values on the margin
of the interpreted embayment feature ("BC1"). The BC1 target represents a
strike of approximately 1,000m.
BC1 (refer Figure Five) sits across the tenement boundary between Future
Metals' 100% owned Panton mining lease (M80/105) and the Panton North tenement
(E80/5455) which is subject to a farm-in and joint venture agreement between
the Company and Octava Minerals Limited ("Octava") whereby Future Metals can
earn up to a 70% interest.
The Company plans to complete ground mapping over the BC1 area during H1 2023
in order to determine the optimal drilling strategy to test the target once
the wet season ends.
Figure Five | Embayment Feature and Ni-Cu-S anomalism in drilling, maglag and
stream sediments
Note the stream sediment Ni-Cu anomalism on the contact
Drill hole PS413 targeted a large magnetic anomaly north-east of drill holes
PS408-PS410, which is an interpreted up-plunge portion of the keel position
towards surface. Similar to the drilling of holes PS408-PS410, assay results
demonstrated highly anomalous sulphide mineralisation over significant
intervals. Drill hole PS413 was terminated in the basal contact, which was
intersected earlier than expected. This drill hole provided valuable
information for building up the structural model of the Panton intrusion at
depth.
Drill holes PS411 and PS412 drilled EM conductors in the south of the Panton
Project area which were broadly coincident with a large gravity anomaly.
Analytical results from both holes demonstrate a strong Ni-Cu-S association,
however results were below the minimum reporting thresholds. Both drill holes
were proximate to a high-strain shear zone and the sulphide mineralisation is
interpreted by the Company to possibly represent structural-hydrothermal
remobilisation from an underlying magmatic source. Further review and analysis
of the results in the context of magmatic sulphide exploration is underway to
determine if further drill testing is warranted.
While the majority of these intersections are not 'ore grade', they do
demonstrate a distinctive sulphide population that is anomalous relative to
historical drilling along strike in the Lower Zone, which was targeting the
same stratigraphic units. Anomalous intersections include:
§ 83m @ 0.49 g/t PGM(3E), 0.25% Ni, 136ppm Co, 0.04% Cu, 0.24% S from
53m(PS408)
§ 1m @ 0.60 g/t PGM(3E), 0.27% Ni, 0.23% Cu, 141ppm Co, 0.42% S from
84m(PS408)
§ 6m @ 0.07 g/t PGM(3E), 0.21% Ni, 0.12% Cu, 171ppm Co, 0.55% S from
57m(PS409)
§ 10m @ 0.48 g/t PGM(3E), 0.20% Ni, 0.03% Cu, 131ppm Co, 0.62% S from
198m(PS409)
§ 19m @ 0.23 g/t PGM(3E), 0.26% Ni, 158ppm Co, 0.09% Cu, 0.34% S from
240m(PS410)
§ 5m @ 0.15 g/t PGM(3E), 0.21% Ni, 153ppm Co, 0.08% Cu, 0.48% S from
343m(PS410)
§ 11m @ 0.03 g/t PGM(3E), 0.11% Ni, 1,149ppm Co, 0.10% Cu, 0.59% S from
146m(PS410)
§ 1m @ 0.97 g/t PGM(3E), 0.25% Ni, 0.30% Cu, 161ppm Co, 0.49% S from
314m(PS410)
§ 53m @ 0.12 g/t PGM(3E), 0.18% Ni, 158ppm Co, 0.10% Cu, 0.44% S from
32m(PS413)
Figure Six | Plan view showing drill holes completed / pending results
Government EIS Grant for deeper drilling
The Company commenced drilling of a deep hole in December 2022 through the
northern gravity anomaly, underneath the chromite reef and into the
interpreted basal contact or feeder conduit position. This deeper drill hole
was completed in January 2023 and is co-funded under the Western Australian
State Government's EIS Scheme, which will reimburse the Company for up to
A$220,000 of drilling costs, including mobilisation and demobilisation.
Results from this hole were outstanding at the time of this report.
Metallurgical Testwork and Scoping Study Activities
The results of bulk ore sorting and flotation optimisation and repeatability
test work were announced on 13 February 2023. The results demonstrated a
significant de-risking for the potential future mining and processing of the
high-grade reef component of the Panton Project MRE and provided a credible
path towards developing a low capital, high margin PGM-Ni operation. The
Company is currently progressing a scoping study which will evaluate multiple
development scenarios, including the production and sale of a bulk Ni-PGM
concentrate and a scenario where the concentrate is further processed using
hydrometallurgical technology to produce upgraded PGM and base metals
products.
Figure Seven | Project Delivery Strategy
Pre-concentration via Ore Sorting
Options to de-risk and improve the development economics for the Panton
Project have been investigated through innovation and recent technological
improvements. One such pathway involves the rejection of waste early in the
comminution process via ore sorting.
Ore sorting technology has been used in the PGM and chromite mining industry
for over ten years. The technology classifies and separates individual rocks
by their physical and chemical properties. By removing gangue and low-grade
ore, the size of the crushing, milling and flotation equipment can be
optimised. Reducing the process plant throughput rate while increasing grade
provides direct savings in terms of capital and operating costs. Ore sorting
also reduces the impact of dilution allowing for the use of conventional
mining equipment, further driving down operating costs. Reductions in mining
and process operating costs allows the mining cut-off grade to be optimised
and the viable mining inventory to be potentially increased.
Sighter and bulk test work has been completed with Steinert Sorting Solutions
("Steinert"). The sighter test work involved a three-stage separation process
applied to a mixed feed of chromitite, magnesite and dunite. Greater than 95%
chromitite recovery was achieved during the first pass, using an x-ray
transmission ("XRT") 3D-laser combination sort programme, due to the
chromitite being substantially higher in atomic density. 100% of the magnesite
was recovered during the second pass, using both an XRT-3D combination (due to
the lower atomic density of magnesite) and laser brightness (due to the high
colour contrast between magnesite and the other materials).
Following the success of the sighter test work, a bulk test was also
completed. The bulk test work involved compositing separate chromitite and
dunite samples to replicate the expected feed mix from a mine stope. The
chromitite and dunite were crushed and screened into three size fractions;
+25mm, +10mm, and -10mm. Each of these size fractions were assayed prior to
preparation of two composites; -75mm to +25mm and -25mm to +10mm, which were
processed using the same XRT 3D-laser combination sort programme used in the
sighter test work. The fine -10 mm fraction is considered to be below the
capability of the ore sorting units and was not tested.
The bulk ore sort test work validated the sighter test work on multiple size
fractions, demonstrating 96.7% recovery of high-grade ore and rejection of
low-grade and waste, increasing the PGM grade of the potential mill feed by
10.7% and reducing the throughput volume by 12.7%. This represents a very
positive result early on in the test work process.
Table Two | Bulk Ore Sorting Test Results
Ore Sorting Products Pt Pd Au Pt, Pd & Au
Weight g/t Recovery g/t Recovery g/t Recovery g/t Recovery
(%) (%) (%) (%) (%)
Calculated Head Grade (Ore Sorter Feed) 3.49 4.00 0.38 7.87
Total Ore Sorter Accepts 87.3 3.88 96.9 4.44 96.8 0.40 92.5 8.72 96.7
Total Ore Sorter Rejects 12.7 0.85 3.09 1.00 3.18 0.22 7.5 1.86 3.4
Figure Eight | Steinert KSS XT CLI Ore Sorter
*Dimensions and grades are for illustrative purposes only
Figure Nine | Ore Sorting Schema
Flotation Test Work Results
As previously noted in the Company's announcement on 7 July 2021 'Above 80%
PGM Recovery to High Grade PGM Concentrate', flotation test work carried out
in 2015 on Panton chromitite ore achieved a technical breakthrough for the
Panton Project. It was shown that a combination of fine grinding (P(80)
38μm), conditioning with sodium dithionite as a reducing agent, and use of
nitrogen gas improved flotation results significantly. The best result
achieved (test HL1279) was 81.4% recovery (PGM(3E)) at a 2.5% mass pull for a
272 g/t PGM(3E) concentrate grade with a rapid 14 minutes of flotation time.
Whilst the 2015 test work achieved dramatic improvements in the flotation
performance, repeatability of HL1279 was not established and there was minimal
follow up optimisation work.
As detailed in the Company's announcement on 21 June 2022 'Independent
Resource Estimate of 6.9Moz PdEq', the Company undertook further flotation
test work in early 2022 on both low-grade composites (~2.3g/t PGM(3E)) and
high-grade composites (~7.6g/t PGM(3E)), using a single stage
rougher-scavenger test. Results yielded PGM(3E) recoveries of up to 68% and
71% respectively (with higher Pd recovery relative to the Pt recovery) with
concentrate grades of ~130g/t PGM(3E) for the high-grade composite and up to
17g/t PGM(3E) for the low-grade composite.
Following this initial test work, the Company embarked on a systematic
programme of optimisation and variability test work with Independent
Metallurgical Operations Pty Ltd.
Flotation results from this latest programme of optimisation and variability
test work yielded positive results on the high-grade chromitite samples with
PGM(3E) recoveries of 75.7% to 81.4% with concentrate grades from 167 g/t to
387 g/t PGM(3E) with an average of 286g/t PGM(3E). These results were achieved
over six consecutive tests, demonstrating strong repeatability of the
flotation regime. A key factor to these consistent results is controlling
potential through the flotation cycle and ensuring a reducing environment is
maintained. Other physical parameters have also been optimised such as froth
collection rates, number of flotation stages and flotation retention time.
Table Four details these latest flotation results.
Table Four | Optimisation and Variability Flotation Test Programme -
Concentrate Grades
Concentrate Grade Head Grade
Mass Pull Pt Pd Au Pt, Pd & Au Pt Pd Au Pt, Pd & Au
% g/t Rec g/t Rec g/t Rec g/t Rec g/t
FT014 2.46 136 77.7 154 74.9 11 65.3 301 75.7 4.31 5.06 0.42 9.79
FT015 2.90 121 80.3 139 78.1 11 68.9 271 78.6 4.38 5.18 0.45 10.01
FT016 1.85 175 78.9 197 75.9 15 68.3 387 76.9 4.09 4.79 0.41 9.29
FT017 2.36 136 78.8 154 75.7 12 67.9 302 76.7 4.08 4.78 0.43 9.29
FT018 3.34 127 82.3 151 81.2 11 74.6 289 81.4 5.13 6.21 0.50 11.84
FT019 4.51 71 78.3 89 77.2 7 70.9 167 77.4 4.11 5.19 0.43 9.73
Average 2.90 128 79.4 147 77.2 11 69.3 286 77.8 4.35 5.20 0.44 9.99
The Company considers the head grade of the flotation tests to be within an
acceptable range of potential mill feed grade when factoring in mined grade of
the Upper Reef following upgrading through ore sorting.
Table Five sets out the range of achieved recoveries, concentrate grades and
head grades for by-products in the flotation tests on chromitite ore samples:
Table Five | By-product Recoveries*
Panton Ni Cu Co* Rh Ir Os
(%) (%) (%) (g/t) (g/t) (g/t)
Head Grade 0.27 - 0.28 0.04 0.03 0.09 - 0.10 0.09 - 0.11 0.12 - 0.13
Recovery (%) 37 - 45 56 - 62 8 - 9 38 - 44 50 - 55 29 - 34
Concentrate Grade 3.8 - 5.5 0.9 - 1.3 0.06 - 0.07 1.4 - 2.0 1.9 - 2.6 1.4 - 2.1
*Only FT017 was assayed for Co
Ongoing Test Work
Results received up to the date of this report indicate that a very high grade
PGM(3E) concentrate is achievable from Panton chromitite ore feed. As a
consistent baseline flotation regime has been established, there is
significant potential for further optimisation through the study process. This
includes introducing a cleaner circuit, concentrate regrind, and further
exploratory testing of reagents to improve recoveries, including the
recoveries of base metals in feed. The Company will continue to test for
further improvements, as well as testing the variability of flotation response
from samples throughout the Panton orebody.
Panton's future concentrate will likely be marketed as a bulk Ni-PGM(3E)
concentrate. Additional optimisation, planning and marketing work is required
in relation to the chrome content of the concentrate, given it is a
deleterious element. However, the high PGM(3E) grade of the concentrate is
expected make the potential Panton Ni-PGM(3E) concentrate attractive to
smelters despite the chrome content. Mine planning and blending strategies
will also be utilised to ensure a consistent, valuable Ni-PGM(3E) concentrate
is produced.
Test work has demonstrated that a metallurgical grade chromite concentrate can
be produced from the Panton flotation tails (from chromitite ore) through Wet
High Intensity Magnetic Separation ("WHIMS"). Chromite concentrate represents
a potentially valuable co-product, which is typically sold into the
ferrochrome industry, as input into stainless steel.
The Company plans to continue optimisation and marketing work and assess the
inclusion of a WHIMS circuit in the forthcoming Scoping Study.
Downstream Processing - Hydrometallurgy
A study is underway to assess the potential to further process the high-grade
concentrate utilising a hydrometallurgical process to produce upgraded metal
products. The potential benefits of hydrometallurgical processing include
improved payabilities, reduced logistics costs and significantly less
sensitivity to many elements deleterious to smelters, such as chrome. Such
benefits have resultant benefits for mine planning and mine inventory.
Lifezone Ltd has been engaged as a technology partner to further explore the
amenability of utilising their hydrometallurgical technology for further
upgrading of the Panton concentrate. The Lifezone hydromet process replaces
the smelting process, extracting contained metals in concentrate through
hydrometallurgical processes to produce a suite of metals products suitable
for potential direct sale to refiners. Hydrometallurgical processing has a
range of benefits relative to smelting including(1):
§ 65-80% lower capital costs
§ 35-50% lower operating costs
§ 50-85% lower electricity consumption
§ Up to 80% lower CO(2) emissions and no SO(2) emissions
§ Fewer constraints on concentrate quality than smelting
The Company's view is that a low emission upgraded PGM product from Australia
would be highly sought after by potential customers in the hydrogen and
automotive industries, who are sensitive to accumulated emissions through the
supply chain, as well as other ESG considerations.
Panton's high grade PGM(3E) concentrate would allow for a small, low-capital
process plant employing Lifezone's hydromet technology, which would
potentially significantly enhance the economics of the Panton Project.
1 Kell hydrometallurgical extraction of precious and base metals from
flotation concentrates - Piloting, engineering and implementation advances.
June 2019. K Liddell, M Adams, L Smith
Scoping Study
The Company is pleased with the progress made to date, with ore sorting and
flotation test work significantly de-risking the future development of Panton.
The ore sorting results have a material impact on mine design and enable a
reduction in the size of milling and flotation equipment, tailings storage,
electricity requirements and water consumption which will therefore reduce
estimated capital and operating costs. Following positive pre-scoping
assessment and prior test work of Lifezone's hydromet process, the Company is
also assessing the potential of downstream integration as part of its Scoping
Study. Additionally, the Company now has an improved geological model for
Panton which will be used to inform an updated JORC Mineral Resource estimate
to be incorporated into the Scoping Study. Lastly, the Company continues to
progress potential processing pathways for its significant low-grade Resource
and will also incorporate this into its study activities once a metallurgical
solution is in place.
Accordingly, the Company expects an updated Scoping Study, incorporating these
improvements, to be completed in H2 2023.
Corporate
Farm-In and Joint Venture Agreement
The Company executed a farm-in and joint venture agreement with Octava
Minerals Ltd over a 70% interest in two tenements, one of which adjoins the
Panton Project to the north. Full details of this transaction were set out in
the announcement entitled 'Farm-In Agreement Over East Kimberley Ni-Cu-PGE
Prospects' released by the Company on 17 January 2023.
A$6m raised from Placement and Share Purchase Plan
An equity placement of 40.0 million new fully paid ordinary shares in the
capital of the Company at a price of A$0.125 per share to raise A$5.0 million
(before expenses) ("Placement") was completed in August 2022.
In conjunction with the Placement, Future Metals offered eligible shareholders
the opportunity to participate in a Share Purchase Plan ("SPP") on the same
terms as the Placement which raised an additional A$1.0m (before expenses).
UK Placement
In early October 2022, the Company completed a Placement of £500,000
(A$843,012, at the time of completion) with a number of High-Net-Worth
Investors in the United Kingdom (the "UK Placement").
The terms were materially the same as the abovementioned A$5.0 million
Placement and A$1.0 million SPP previously completed.
The rationale behind the UK Placement was to increase the liquidity of the
Company's ordinary shares on AIM and help improve the Company's market
presence in the UK, where there has long been an active interest in PGM
companies.
The Company engaged with a UK-based investor relations firm Flowcomms Limited,
to further assist in raising the profile of the Company in the UK market.
Appointment of Corporate Broker
In late 2022, the Company announced the appointment of Panmure Gordon (UK)
Limited as Corporate Broker and Joint Financial Adviser, replacing WH Ireland
Limited. This appointment forms part of the Company's strategy to increase its
profile with institutional investors in the UK and European markets.
Personnel changes
Finance Director Aaron Bertolatti stepped down from the Board with effect from
31 July 2022 following the orderly transition of his responsibilities to Chief
Financial Officer and Company Secretary, Tom O'Rourke.
The Company was also pleased to report that it had retained the services of
Ni-Cu-PGE expert, Dr Jon Hronsky, as the Company's Senior Exploration Advisor
and further strengthened its geology team with the addition of Barbara Duggan,
an experienced Ni sulphide exploration geologist.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 17 January 2023, the Company entered into a Farm-in and Joint Venture
Agreement with Octava Minerals Limited ("Octava") with respect to the right to
earn a 70% interest in its wholly owned Panton North and Copernicus North
Ni-Cu-PGE projects in the East Kimberly region of Western Australia.
Future Metals issued 3.5 million new ordinary shares to Octava, voluntarily
escrowed for 12 months, as upfront consideration. The Company is also, inter
alia, required to make a final payment to Octava of A$200,000 in 12 months
from completion in cash or shares (at Future Metals' sole election).
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 the Company's 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, set out on page 16 of the full Half-Year
Report, forms part of this Directors' report for the half-year ended 31
December 2022.
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.
Jardee Kininmonth
Managing Director
15 March 2023
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2022
Note 31-Dec-22 Restated((i))
31-Dec-21
$ $
Continuing Operations
Interest received 53,360 3,246
Employee and director benefits expense (297,309) (180,109)
Professional and Consultants (148,769) (272,562)
ASX, AIM and share registry fees 3, 11(c) (236,077) (1,776,014)
Travel expenditure (69,593) (5,803)
Exploration expenditure (3,202,381) (2,128,325)
Share based payment expense 11 (517,195) (53,299)
Amortisation/depreciation expense (8,333) (34,104)
Unrealised Foreign exchange gain/(loss) (1,044) 1,813
Realised Foreign exchange gain/(loss) - (446)
Other expenses (341,363) (120,304)
(Loss)/profit before income tax (4,768,704) (4,565,907)
Income tax expense - -
(Loss)/profit after Income Tax (4,768,704) (4,565,907)
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 (4,768,704) (4,565,907)
(Loss)/profit for the period attributable to:
Members of the parent entity (4,768,704) (4,565,907)
Non-controlling interests - -
(4,768,704) (4,565,907)
Total comprehensive (loss)/income for the period attributable to:
Members of the parent entity (4,768,704) (4,565,907)
Non-controlling interests - -
(4,768,704) (4,565,907)
(Loss)/profit per share
Basic and diluted (loss)/profit per share (cents) (1.22) (1.31)
((i)) Please refer to note 2(c) and note 9 of the full Half-Year Report for
details regarding the restatement as a result of a change in accounting
policy.
The above Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying notes in the full
Half-Year Report.
Consolidated Statement of Financial Position
as at 31 December 2022
Note 31-Dec-22 Restated((i)) Restated((i))
30-Jun-22 30-Jun-21
$ $ $
Current Assets
Cash and cash equivalents 5,796,031 3,331,607 9,555,684
Trade and other receivables 252,717 78,447 175,840
Total Current Assets 6,048,748 3,410,054 9,731,524
Non-Current Assets
Deferred Exploration & Evaluation Expenditure 4 15,987,401 16,435,451 16,653,580
Property, Plant and Equipment 69,324 35,935 -
Right of Use Assets - - 83,101
Total Non-Current Assets 16,056,725 16,471,386 16,736,681
Total Assets 22,105,473 19,881,440 26,468,205
Current Liabilities
Trade and other payables 5 1,164,883 1,067,868 2,029,502
Lease Liabilities - - 72,404
Total Current Liabilities 1,164,883 1,067,868 2,101,906
Non-Current Liabilities
Lease Liabilities - - 12,421
Total Non-Current Liabilities - - 12,421
Total Liabilities 1,164,883 1,067,868 2,114,327
Net Assets 20,940,590 18,813,572 24,353,878
Equity
Issued capital 6 36,124,091 29,689,231 29,238,564
Reserves 7 3,537,669 3,076,807 1,789,333
Accumulated losses 8 (18,721,170) (13,952,466) (6,674,019)
Total Equity 20,940,590 18,813,572 24,353,878
((i)) Please refer to note 2(c) and note 9 of the full Half-Year Report for
details regarding the restatement as a result of a change in accounting
policy.
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes in the full Half-Year Report.
Consolidated Statement of Changes in Equity
for the half-year ended 31 December 2022
Issued capital Accumulated losses Share based payments reserve Total
$ $ $ $
Balance at 1 July 2021 29,238,564 (6,307,456) 1,789,333 24,720,441
Change in accounting policy((i)) - (366,563) - (366,563)
Balance at 1 July 2021 restated 29,238,564 (6,674,019) 1,789,333 24,353,878
Total comprehensive loss for the period
Loss for the period - (2,437,582) - (2,437,582)
Impact of change in accounting policy((i)) - (2,128,325) - (2,128,325)
Other Comprehensive loss - - - -
Total comprehensive loss for the period - (4,565,907) - (4,565,907)
Transactions with owners in their capacity as owners
Share based payment expense - - 863,977 863,977
Balance at 31 December 2021 restated 29,238,564 (11,239,926) 2,653,310 20,651,948
Balance at 1 July 2022 29,689,231 (13,115,644) 3,076,807 19,650,394
Change in accounting policy((i)) - (836,822) - (836,822)
Balance at 1 July 2022 restated 29,689,231 (13,952,466) 3,076,807 18,813,572
Total comprehensive loss for the period
Loss for the period - (4,768,704) - (4,768,704)
Other Comprehensive loss - - - -
Total comprehensive loss for the period - (4,768,704) - (4,768,704)
Transactions with owners in their capacity as owners
Shares issued during the period 6,901,344 - (56,333) 6,845,011
Cost of issue (466,484) - - (466,484)
Share based payment (note 11 (a)) - - 517,195 517,195
Balance at 31 December 2022 36,124,091 (18,721,170) 3,537,669 20,940,590
((i)) Please refer to note 2(c) and note 9 of the full Half-Year Report for
details regarding the restatement as a result of a change in accounting
policy.
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes in the full Half-Year Report.
Consolidated Statement of Cash Flows
for the half-year ended 31 December 2022
31-Dec-22 Restated((i))
31-Dec-21
$ $
Cash flows from operating activities
Payments to suppliers and employees (1,186,415) (1,798,447)
Payments for exploration and evaluation (2,739,325) (2,114,672)
Interest received 53,360 3,246
Net cash (used in)/provided by operating (3,872,380) (3,909,873)
activities
Cash flows from investing activities
Acquisition of property, plant and equipment (41,723) (44,241)
Net cash used in investing activities (41,723) (44,241)
Cash flows from financing activities
Proceeds from issue of shares 6,845,012 -
Share issue costs (466,485) -
Net cash provided by financing activities 6,378,527 -
Net (decrease)/increase in cash and cash equivalents 2,464,424 (3,954,114)
Cash and cash equivalents at beginning of period 3,331,607 9,555,684
Cash and cash equivalents at the end of the period 5,796,031 5,601,570
((i)) Please refer to note 2(c) and note 9 of the full Half-Year Report for
details regarding the restatement as a result of a change in accounting
policy.
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes in the full Half-Year Report which can be accessed
at via the following
link: http://www.rns-pdf.londonstockexchange.com/rns/0626T_1-2023-3-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0626T_1-2023-3-15.pdf) .
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 BELFFXXLFBBLRecent news on Future Metals NL
See all newsREG - Future Metals NL - Quarterly Activities Report
AnnouncementREG - AIM - AIM Notice - 24/04/2025
AnnouncementREG - Future Metals NL - Completion of Placement
AnnouncementREG - Future Metals NL - Strategic Infrastructure MOU and Equity Fundraise
AnnouncementREG - Future Metals NL - ASX Trading Halt
Announcement