REG - Salt Lake Potash Ltd - December 2020 Quarterly Report

Salt Lake PotashAnnouncement

29/01/2021 07:01

RNS Number : 2889N
  
Salt Lake Potash Limited
  
29 January 2021
  
 





29 January 2021
 


AIM/ASX Code: SO4
 




 




SALT LAKE POTASH LIMITED




December 2020 Quarterly Report
Salt Lake Potash Limited (SO4 or the Company) is pleased to present its Quarterly Report for the period ending 31 December 2020. 
The Company is focussed on transitioning from developer to producer at the Lake Way SOP Project in Wiluna, Western Australia, as it looks to complete construction and commence commissioning the Process Plant in the current quarter.
Quarterly Report Highlights                                                                               
Project Financial Close delivered 
·      Financial Close for the Lake Way Project was achieved in December with an equity financing including a A$52m share placement and A$5m Share Purchase Plan (subsequently upsized to A$8m on strong demand), priced at A$0.40 per new share. Following completion of the placement the Company drew the first US$105m tranche of the US$138m Taurus/CEFC debt facility with US$45m used to repay the Taurus Bridge Facility.
Salt harvesting commenced
·    Harvesting of potassium rich kainite and schoenite salts from Train 1 commenced with approximately 27kt of salts stockpiled ahead of plant commissioning. Harvest trials in a section of the cells were successful using an efficient tractor and scraper methodology.  Assays from the harvest salt stockpiles have returned grades in-line with the system curve and planning models.
Process Plant reaches 88% completion
·    At December 31st, 2020 the Process Plant was 88% complete on an earned value basis with site concrete work (including additional NPI and bagging infrastructure) 94% complete, structural steel 80% complete and tanks/vessels 81% complete.
Logistics routes confirmed
·    A preferred logistics provider has been selected and contractual arrangements are expected to be finalised shortly. As part of optimising the logistics and sales/marketing platform SO4 expects to have the flexibility to sell up to 82% of its SOP via Fremantle.
Board Strengthened
·    In October Phil Montgomery and Peter Thomas were appointed to the board as Non-Executive Directors. Mark Pearce stepped down from his position as a Non-Executive Director.
Community contribution recognised
·    SO4 received the Community Contribution Award at the 2020 Association of Mining and Exploration Company (AMEC) annual awards. The award recognised the Company's efforts to deliver sustainable and long-lasting social and economic benefits to the Wiluna region through strategic partnerships, community investment and opportunities in employment and training.
 
Tony Swiericzuk Chief Executive Officer
"Significant progress was made in the December quarter in financing, operations and construction as well as at the corporate level with the strengthening of our board. We look forward to commissioning the plant in the March 2021 quarter, shortly followed by premium quality sop sales to the domestic and global markets."
Project Financial Close 
Equity Financing
In December, the Company achieved project Financial Close on the Lake Way Project with an equity financing including a A$52m share placement and a Share Purchase Plan (SPP), priced at A$0.40 per new share. Directors applied for A$2m of shares in the placing including 3.0 million shares by Chairman, Mr Ian Middlemas and 0.5 million shares by Managing Director and CEO, Mr Tony Swiericzuk.
The SPP, originally intended to raise A$5 million, was heavily oversubscribed with applications received for A$10.0 million. Given the strong support from existing Shareholders, the Board exercised its discretion under the terms of the SPP to increase the size of the offer to A$8 million in recognition of the ongoing support of its retail investors.
The funds were raised partially to satisfy the remaining conditions precedent in the US$138m debt facility with Taurus and CEFC. The funds are to be used as follows: 
·      A$18m to cash back a bank guarantee for the APA gas pipeline;
·      A$15m to cover possible variations to ramp up schedule vs. bank model;
·      A$10m due to recent AUD strength;
·      A$2m financing transaction fees; and
·      Up to a further A$15m for additional working capital.
 
Debt Financing
On December 22nd the Company drew the first US$105m tranche of the US$138m Taurus/CEFC debt facility with US$45m used to repay the Taurus Bridge Facility.
The remaining US$33m is expected to be drawn in Q2'21, subject to market standard conditions. The material terms of the SFA are outlined in the table below.
Table 1 - Key loan terms




Facility Amount


US$138m (Taurus US$91m, CEFC US$47m)




Tenor


4 Years (30 September 2024)




Availability Period


Financial close until 30 June 2021




Interest rate


9% per annum payable quarterly on drawn funds




Upfront Fee 


2.75%




Undrawn Commitment fee


2.5% per annum




Tranches


Bridge: US$45m currently drawn
SFA: US$138m (including Bridge repayment) 




Amortisation/Repayment


No scheduled repayments or debt amortisation until 31 March 2022 (approximately 12 months after first production) with scheduled repayment profile commencing at 2.0% of Principal
Additional cash sweep of 70% of surplus cash available for debt service accelerating SO4's deleveraging




Debt Service Reserve Account 


US$8m prior to project completion, thereafter greater of US$8m and principal and interest payable in next 6 months




Bullet


US$92m (67%) at 31 December 2024 (less early repayments)




Refinancing Restrictions


Nil 18 months after signing




On-lake Operations
Plant feed salt harvesting commenced
Harvesting of potassium rich kainite and schoenite salts from Train 1 commenced in the quarter with approximately 27kt of salts now stockpiled ahead of plant commissioning. Harvest trials in a section of the cells were successful using an efficient tractor and scraper methodology.  Assays from the harvest salt stockpiles have returned grades in-line with the system curve and planning models.
Paleochannel drilling
The paleochannel drilling programme continues with bores at pads 12, 14 and 23 now completed and undergoing test-pumping. 
Off-Lake Operations
Process Plant construction
At December 31st, 2020 the Process Plant was 88% complete on a value earned basis with site concrete work (including additional NPI and bagging infrastructure) 94% complete, structural steel 80% complete and tanks/vessels 81% complete. 
Major items now installed include the SOP and schoenite crystallisers, attritioners, drag feeder, conveyors, lump breaker, various tanks and agitators, chillers, transformers, utilities switch room and various pumps, hoppers and launders. Associated piping, cabling and valves installation now comprise most of the remaining work on an earned value basis.
The Company expects Process Plant commissioning to commence in February with the introduction of first feed salts to the plant occurring in March.  
Non-process Infrastructure
The raw water pond has been lined and commissioned, and both the Southern and West Creek Raw Water Borefields supplying the plant and village have been commissioned.
Work on of the 27km APA gas pipeline that connects with the Goldfields Gas Pipeline commenced in November 2020. At the end of December, the pipeline was 99% welded and 67% placed and backfilled. Full installation is expected to be completed in late January.
Procurement
Total procurement for the Process Plant reached 96% on December 31st, 2020. Recently a small number of items have experienced minor delays due to dynamics in the COVID effected global shipping markets. Specifically, consignments including flooring grid mesh, cage crusher, and some valves and pumps have been delayed by a few weeks. The Company is working closely with GRES and its suppliers to minimise the impact of any potential delays caused by shipping. At this stage, the delays in shipping are not expected to impact commissioning. 
Logistics & Marketing
A preferred logistics provider was identified in the quarter and contractual arrangements are currently being finalised. The Company has been working with short-listed providers throughout 2020 to optimise its logistics and sales/marketing platform, exploring various routes to market and product packaging solutions.
As part of this optimisation process SO4 plans to have the flexibility to sell up to 82% of its SOP via Fremantle port in sea containers loaded with product in loose bulk, 1 to 1.5t bulk bags and 25kg bags. Product exported from Fremantle will be transported to Leonora by road where it will be transferred to rail for the remaining journey to Fremantle.
Shipping through Fremantle is expected to provide access to broader global markets at no additional net cost. Bagging and container premiums (verified by Argus) are expected to offset incremental domestic logistics costs.  Additional benefits of using Fremantle are a reduction in inventory working capital and a significant reduction in the logistics carbon footprint.
Bulk shipment sales will remain out of Geraldton port. 
A further logistics update will be provided upon finalisation of all contractual arrangements.
Board & Management changes
In October Phil Montgomery and Peter Thomas were appointed to the board as Non-Executive Directors. Mark Pearce stepped down from his position as a Non-Executive Director. 
Phil Montgomery is a highly experienced mining industry executive who was most recently Vice President - Projects at BHP, responsible for the development of BHP's Potash business through its Jansen project in Saskatchewan, Canada. Mr Montgomery brings significant experience in project development and operations having held senior project development positions at BHP and Billiton for over 20 years working across several commodities and geographies, including leadership of BHP's Iron Ore growth program (2002-12). He holds a BSc (Mechanical Engineering) from Oxford Brookes University in the UK and completed the Executive Leadership Programme at INSEAD.
Peter Thomas is a senior executive with significant experience in project operations, construction, finance and strategy. Mr Thomas held senior executive positions at Fortescue between 2004-2014 including Project Director in charge of the A$4.7bn T155 port and rail infrastructure investment and Director of Corporate Services. He has previously worked for McKinsey and Lehman Brothers in the USA and more recently held the position of CEO of the Balla Balla Infrastructure Group (Todd Corporation). He is currently CFO of Decmil, the ASX listed construction and engineering group with c.A$500m in revenues. Mr Thomas holds an MBA from Harvard Business School, a BEc and BSc from Macquarie University and is a graduate of the Australian Institute of Company Directors.
In December, Shaun Day resigned as CFO.  Grant Coyle has subsequently been appointed interim CFO. 
Grant is an experienced corporate finance executive having been appointed as SO4's Head of Corporate Development in July 2018 and playing a lead role in delivering the US$138m Taurus / CEFC funding package. Prior to SO4 Grant held an executive position at Rio Tinto working across the business analysis and business development areas within the Iron Ore division. He is a former investment banker at Macquarie Bank and corporate tax accountant for an international accounting firm. Grant has extensive experience in finance, budgeting, project evaluation, commercial negotiations and strategic planning.
The Company is undertaking an external search ahead of the appointment of a permanent CFO.
AMEC community contribution award
In December 2020 SO4 received the Community Contribution Award at the 2020 Association of Mining and Exploration Company (AMEC) annual awards.
The award recognised the Company's efforts to deliver sustainable and long-lasting social and economic benefits to the Wiluna region through strategic partnerships, community investment and opportunities in employment and training.
Approvals
The Company continued the advancement of the remaining permitting required to support full-scale operations. 
A revised Environmental Review Document (ERD) was submitted during the quarter, with the EPA confirming acceptance and completing their draft assessment report. SO4 presented the project to the EPA board and the board assessed the project in their December monthly meeting. The board agreed to adopt the draft assessment report and the EPA have commenced the final assessment report, to be issued to the Minister.
The EPA has determined that the full project scope requires formal assessment with no public review.
In addition to the EPA submission, the Company continues to seek other project approvals as required.
 
For further information or to view a full version of this announcement, including diagrams, please visit https://www.so4.com.au/asx-announcements/  or contact:
 




Tony Swiericzuk / Richard Knights


Salt Lake Potash Limited


Tel: +61 8 6559 5800




Colin Aaronson / Seamus Fricker


Grant Thornton UK LLP (Nominated Adviser)


Tel: +44 (0) 20 7383 5100




Derrick Lee / Peter Lynch


Cenkos Securities plc (Joint Broker)


Tel: +44 (0) 131 220 6939




Rupert Fane / Ernest Bell


Hannam & Partners (Joint Broker)


Tel: +44 (0) 20 7907 8500




 
This announcement has been authorised for release by the Board of Directors.
The information contained within this announcement is deemed to constitute inside information as stipulated under the UK Market Abuse Regulation. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
APPENDIX A -DISCLAIMER
Forward Looking Statements
This announcement includes forward-looking statements. These forward-looking statements are based on the Company'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 the Company, which could cause actual results to differ materially from such statements. Although the Company believes that its forward-looking statements have reasonable grounds, can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the Company's business (including those described in pages 25 to 29 (inclusive) of the Presentation released to ASX on 11 December 2020), which cause actual results to differ materially from those expressed herein. The Company makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, save where required by law or regulation, to reflect the circumstances or events after the date of this announcement.
APPENDIX B - DISCLOSURES IN ACCORDANCE WITH ASX LISTING RULE 5.3
Summary of Mining Tenements




Project


Status


Type of Change


License Number


Interest (%)
30-Sep-20


Interest (%)
31-Dec-20






Western Australia


 


 


 


 


 




Lake Way


 


 


 


 


 




Central


Granted


-


E53/1878


100%


100%




East


Granted


-


E53/2057


100%


100%




South


Granted


-


E53/1897


100%


100%




South


Granted


-


E53/2059


100%


100%




South


Granted


-


E53/2060


100%


100%




West


Application


-


L53/208


100%


100%




Central


Application


-


M53/1102


100%


100%




Central


Application


-


M53/1103


100%


100%




Central


Application


-


M53/1104


100%


100%




Central


Application


-


M53/1105


100%


100%




Central


Application


-


M53/1106


100%


100%




Central


Application


-


M53/1107


100%


100%




East


Application


-


M53/1109


100%


100%




Central


Granted


-


E53/1862


100%


100%




West


Granted


-


E53/1863


100%


100%




North


Application


-


E53/1905


100%


100%




North


Application


-


E53/1952


100%


100%




West


Application


-


E53/1966


100%


100%




North 


Application


-


E53/2049


100%


100%




North


Granted


-


P53/1642


100%


100%




West


Granted


-


P53/1643


100%


100%




West


Granted


-


P53/1644


100%


100%




West


Granted


-


P53/1645


100%


100%




Central


Granted


-


P53/1666


100%


100%




Central


Granted


-


P53/1667


100%


100%




Central


Granted


-


P53/1668


100%


100%




North


Granted


-


M53/121


100%


100%




West


Granted


-


M53/122


100%


100%




West


Granted


-


M53/123


100%


100%




West


Granted


-


M53/147


100%


100%




Central


Granted


-


M53/253


100%


100%




Central


Granted


-


M53/796


100%


100%




Central


Granted


-


M53/797


100%


100%




Central


Granted


-


M53/798


100%


100%




Central


Granted


-


M53/910


100%


100%




West


Granted


-


L53/51


100%


100%




West


Granted


-


L53/207


100%


100%




West


Granted


-


L53/211


100%


100%




North


Granted


-


L53/212


100%


100%




West


Granted


-
-


L53/214


100%


100%




West


Granted


-
 


L53/215


100%


100%




North
 
 
 
 


Granted


-


L53/216


100%


100%




West


Application


-


L53/217


100%


100%




West


Granted


-


L53/218


100%


100%




West


Application


-


L53/210


100%


100%




West


Application


-


L53/219


100%


100%




South


Application


-


L53/225


100%


100%




West


Application


-


L53/226


100%


100%




West


Application


-


L53/228


100%


100%




West


Application


-


L53/229


100%


100%




West


Granted


-


G53/24


100%


100%




West


Granted


-


G53/25


100%


100%




Lake Wells


 


 


 


 


 




Central


Granted


-


E38/2710


100%


100%




South


Granted


-


E38/2821


100%


100%




North


Granted


-


E38/2824


100%


100%




Outer East


Granted


-


E38/3055


100%


100%




Single Block


Granted


-


E38/3056


100%


100%




Outer West


Granted


-


E38/3057


100%


100%




North West


Granted


-


E38/3124


100%


100%




West


Granted


-


L38/262


100%


100%




East


Granted


-


L38/263


100%


100%




South West


Granted


-


L38/264


100%


100%




South


Granted


-


L38/287


100%


100%




South Western


Granted


-


E38/3247


100%


100%




South 


Granted


-


M38/1278


100%


100%




Central


Application


-


E38/3380


100%


100%




    North


Application


-


E38/3469


100%


100%




    Central


Application


-


E38/3470


100%


100%




Lake Ballard


 


 


 


 


 




West


Granted


-


E29/912


100%


100%




East


Granted


-


E29/913


100%


100%




North


Granted


-


E29/948


100%


100%




South


Granted


-


E29/958


100%


100%




South East


Granted


-


E29/1011


100%


100%




South East


Granted


-


E29/1020


100%


100%




South East


Granted


-


E29/1021


100%


100%




South East


Granted


-


E29/1022


100%


100%




South


Granted


-


E29/1067


100%


100%




South


Granted


-


E29/1068


100%


100%




East


Granted


-


E29/1069


100%


100%




North


Granted


-


E29/1070


100%


100%




Lake Irwin


 


 


 


 


 




West


Granted


-


E37/1233


100%


100%




Central


Granted


-


E39/1892


100%


100%




East


Granted


-


E38/3087


100%


100%




North


Granted


-


E37/1261


100%


100%




Central East


Granted


-


E38/3113


100%


100%




South


Granted


-


E39/1955


100%


100%




North West


Granted


-


E37/1260


100%


100%




South West


Granted


-


E39/1956


100%


100%




Lake Minigwal


 


 


 


 


 




West


Granted


-


E39/1893


100%


100%




East


Granted


-


E39/1894


100%


100%




Central


Granted


-


E39/1962


100%


100%




Central East


Granted


-


E39/1963


100%


100%




South


Granted


-


E39/1964


100%


100%




South West


Granted


-


E39/1965


100%


100%




Lake Marmion


 


 


 


 


 




North


Granted


-


E29/1000


100%


100%




Central


Granted


-


E29/1001


100%


100%




South


Granted


-


E29/1002


100%


100%




West


Granted


-


E29/1005


100%


100%




West


Application


-


E29/1069


100%


100%




Lake Noondie


 


 


 


 


 




North


Granted


-


E57/1062


100%


100%




Central


Granted


-


E57/1063


100%


100%




South


Granted


-


E57/1064


100%


100%




West


Granted


-


E57/1065


100%


100%




East


Granted


-


E36/932


100%


100%




Central


Granted


-


E36/984


100%


100%




Central


Application


-


E36/985


100%


100%




Lake Barlee


 


 


 


 


 




North


Granted


-


E30/495


100%


100%




Central


Granted


-


E30/496


100%


100%




South


Granted


-


E77/2441


100%


100%




Lake Raeside


 


 


 


 


 




North


Granted


-


E37/1305


100%


100%




Lake Austin


 


 


 


 


 




North


Application


-


E21/205


100%


100%




West


Application


-


E21/206


100%


100%




East


Granted


-


E58/529


100%


100%




South


Granted


-


E58/530


100%


100%




South West


Granted


-


E58/531


100%


100%




Northern Territory


 


 


 


 


 




Lake Lewis


 


 


 


 


 




South


Granted


-


EL 29787


100%


100%




North


Granted


-


EL 29903


100%


100%




 
 
Related Party Payments
During the quarter ended 31 December 2020, the Company made payments of $96,000 to related parties and their associates. These payments relate to existing remuneration arrangements (executive salaries, non-executive director fees and superannuation).
APPENDIX C - 
Appendix 5B
Mining exploration entity or oil and gas exploration entity

quarterly cash flow report




Name of entity




Salt Lake Potash Limited




ABN


 


Quarter ended ("current quarter")




98 117 085 748


 


31 December 2020




 




Consolidated statement of cash flows


Current quarter

$A'000


Year to date (6 months)

$A'000






1.


Cash flows from operating activities


-


-




1.1


Receipts from customers




1.2


Payments for


(1,045)


(1,445)




 


(a)   exploration & evaluation 




 


(b)   development


-


-




 


(c)   production


-


-




 


(d)   staff costs


(439)


(980)




 


(e)   administration and corporate costs


(1,234)


(2,039)




1.3


Dividends received (see note 3)


-


-




1.4


Interest received


52


100




1.5


Interest and other costs of finance paid


(3)


(7)




1.6


Income taxes paid


-


-




1.7


Government grants and tax incentives


-


3,589




1.8


Other (provide details if material)
      - Business Development
      - Other 


 
(1,003)
-


 
(3,331)
-




1.9


Net cash from / (used in) operating activities


(3,672)


(4,113)




 




2.


Cash flows from investing activities


-


-




 


Payments to acquire or for:




 


(a)   entities




 


(b)   tenements


-


(715)




 


(c)   property, plant and equipment


(889)


(1,645)




 


(d)   exploration & evaluation 


-


-




 


(e)   investments


-


-




 


(f)    other non-current assets - Mine Properties in development


(56,934)


(96,748)




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 (Bank Guarantee) 


(18,000)


(18,000)




2.6


Net cash from / (used in) investing activities


(75,823)


(117,108)




 




3.


Cash flows from financing activities


50,000


163,537




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


(2,635)


(7,802)




3.5


Proceeds from borrowings


138,257


138,257




3.6


Repayment of borrowings and leases


(59,652)


(60,008)




3.7


Transaction costs related to loans and borrowings


(6,247)


(12,126)




3.8


Dividends paid


-


-




3.9


Other (provide details if material)


-


-




3.10


Net cash from / (used in) financing activities


119,723


221,858




 




4.


Net increase / (decrease) in cash and cash equivalents for the period


 


 




4.1


Cash and cash equivalents at beginning of period


67,337


7,030




4.2


Net cash from / (used in) operating activities (item 1.9 above)


(3,672)


(4,113)




4.3


Net cash from / (used in) investing activities (item 2.6 above)


(75,823)


(117,108)




4.4


Net cash from / (used in) financing activities (item 3.10 above)


119,723


221,858




4.5


Effect of movement in exchange rates on cash held


(212)


(314)




4.6


Cash and cash equivalents at end of period


107,353


107,353




 




5.


Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts


Current quarter

$A'000


Previous quarter

$A'000




5.1


Bank balances


96,916


49,287




5.2


Call deposits


10,437


18,050




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)


107,353


67,337




 




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 in item 1


(96)




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

Note: the term "facility' includes all forms of financing arrangements available to the entity.
Add notes as necessary for an understanding of the sources of finance available to the entity.


Total facility amount at quarter end

$A'000


Amount drawn at quarter end

$A'000




7.1


Loan facilities


179,174


136,328




7.2


Credit standby arrangements


-


-




7.3


Other (please specify)


-


-




7.4


Total financing facilities


179,174


136,328




 


 


 




7.5


Unused financing facilities available at quarter end


42,846




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.




In August 2020, the Company and its subsidiaries and Taurus Mining Finance Fund No. 2, L.P. and the Clean Energy Finance Corporation entered into the Syndicated Facility Agreement for a US$138 million debt financing package (SFA). After achieving financial close in December 2020, the Company announced its first draw down under the SFA totalling US$105 million enabling repayment of the US$45 million Stage 1 Bridge facility originally entered into in 2019.
The SFA is secured and interest payable at 9.00% pa with a further draw down US$33 million available to the Lake Way Project.
As the loan is denominated in USD, the facility amount and amount drawn down has been converted at an FX rate of $0.7702 USD/AUD, being the FX cross rate at 31 December 2020.




 




8.


Estimated cash available for future operating activities


$A'000




8.1


Net cash from / (used in) operating activities (item 1.9) 


(3,672)




8.2


(Payments for exploration & evaluation classified as investing activities) (item 2.1(d))


-




8.3


Total relevant outgoings (item 8.1 + item 8.2)


(3,672)




8.4


Cash and cash equivalents at quarter end (item 4.6)


107,353




8.5


Unused finance facilities available at quarter end (item 7.5)


42,846




8.6


Total available funding (item 8.4 + item 8.5)


150,199




 


 


 




8.7


Estimated quarters of funding available (item 8.6 divided by item 8.3)


40




Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 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:                29 January 2021
Authorised by:  By the Board
(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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