REG - Sovereign Metals Ltd - December 2025 Quarterly Report
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RNS Number : 0282R Sovereign Metals Limited 30 January 2026
NEWS RELEASE I 30 January 2026
DECEMBER 2025 QUARTERLY REPORT
Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the
Company) is pleased to provide its quarterly report for the period ended 31
December 2025 including advances made at its Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
Strategic Rare Earths Recovered at Kasiya
· Sovereign recovers heavy rare earth monazite concentrate from Kasiya
rutile tailings stream
· Preliminary analysis confirms Kasiya monazite to contain
exceptionally elevated levels of heavy rare earth elements Dysprosium -
Terbium (DyTb) and Yttrium, materially exceeding those of the five largest
producers globally, which account for 70% of the world's rare earth production
· DyTb and Yttrium are of paramount importance to nations seeking to
secure and protect rare earth supply chains
o DyTb: heavy magnet rare earths essential for high-temperature permanent
magnets used in advanced technology, including defence systems and precision
weapons
o Yttrium: high-impact rare earth element critical for aerospace, thermal
barrier coatings, radar and laser systems, alloy strengthening and
semiconductor manufacturing
· Monazite by-product has potential to add third revenue stream to
Kasiya for near-zero incremental cost, with basic monazite concentrate
currently selling for over US$8,500/t delivered to China
World Bank Group's IFC to Collaborate with Sovereign on Sustainable
Development for Kasiya
· Collaboration Agreement signed with International Finance Corporation
(IFC), a member of the World Bank Group, to support the sustainable
development of Kasiya
· Collaboration with IFC - world's largest global development
institution - is expected to lay the foundation for international project
financing for Kasiya
· IFC to provide Environmental & Social expertise, supplementing
Rio Tinto's significant input. The Kasiya Definitive Feasibility Study (DFS)
and Environmental and Social Impact Assessment (ESIA) will seek to integrate
IFC's Performance Standards on Environmental and Social Sustainability
· IFC secures financing rights to fund Kasiya: right to act as lender,
mandated co-lead arranger, and/or investor in securities for project
financing. IFC's financing rights are subject to Rio Tinto's rights under the
Investment Agreement
Kasiya's Growing Strategic Importance Emphasised During and Subsequent to
Quarter
· During the quarter, the US State Department's Deputy Assistant
Secretary Nick Checker visited Sovereign's facilities in Malawi as part of a
broader engagement with strategically significant critical minerals projects
in Africa
o The U.S. Government remains committed to partnering with Malawi to promote
trade and investment for shared prosperity
· In January 2026, China announced strengthened export controls on
dual-use items to Japan, effective immediately. Beijing is tightening export
licensing for heavy rare earths including dysprosium, terbium, and yttrium
· Monazite by-product complements Kasiya's rutile and graphite - three
critical minerals serving Western defence and clean energy supply chains from
a single operation
Next Steps
Over the quarter ending March 2026, Sovereign will:
· Continue to advance the Kasiya DFS;
· Advance rutile and graphite offtake discussions;
· Undertake further work to characterise the monazite mineralisation at
Kasiya including detailed mineralogical characterisation of monazite
occurrence and distribution within the Kasiya orebody;
· Evaluate the potential scale of rare earth production as a by-product
and associated economics; and
· Continue the Company's community and social development programs in
Malawi.
Enquiries
Frank Eagar, Managing Director & CEO
South Africa / Malawi
+27 21 140 3190
Sapan Ghai, CCO
London
+44 207 478 3900
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Joint Broker
Stifel +44 20 7710 7600
Varun Talwar
Ashton Clanfield
STRATEGIC RARE EARTHS RECOVERED AT KASIYA
Subsequent to the quarter, the Company announced that it had successfully
recovered a monazite product containing high-value heavy rare earth elements
(REE) from the tailings stream generated during rutile processing at its
upgraded Lilongwe laboratory facilities. The concentrate was recovered from
material that would otherwise be discarded, i.e. the non-conductor tailings
stream from electrostatic separation of a heavy mineral gravity concentrate of
Kasiya ore. Producing a monazite concentrate would therefore require no
additional complex processing. Chemical analysis of magnetic concentrates from
processed resource drilling samples performed by Scientific Services South
Africa confirmed the favourable rare earth oxide distributions produced from
the monazite concentrate.
Preliminary analysis has confirmed the monazite concentrate contains
exceptional heavy rare earth content averaging 2.9% (and up to 3.9%) combined
DyTb and averaging 11.9% (and up to 17.3%) yttrium, and light rare earth
content including 21.8% neodymium-praseodymium (NdPr).
This composition sets Kasiya apart from all major global rare earth producers.
Global rare earth production is concentrated in five major operations: three
in China (Bayan Obo, Weishan, Maoniuping), one in Australia operated by Lynas
Rare Earths Ltd (Mt Weld), and one in the United States operated by MP
Materials Corp (Mountain Pass). Together, these mines supply over 70% of the
world's rare earth production.
All five are dominated by light rare earths - principally lanthanum and
cerium, which are abundant and low-value, and the magnet rare earths Neodymium
and Praseodymium (NdPr). The strategically critical heavy rare earths -
dysprosium, terbium, and yttrium - that underpin high-performance advanced
technology, defence, industrial and renewable energy applications are present
in much smaller amounts. Kasiya's heavy rare earth content is approximately 7x
higher for both DyTb and yttrium than found in the five largest rare earth
producing mines. Mountain Pass - America's only rare earth mine - contains no
measurable DyTb or yttrium.
Figure 1: Strategic Rare Earth Composition - Kasiya vs Major Global Producers
(See Appendix 5 for breakdown and sources)
Preliminary analysis vs REE development Projects
China's April 2025 export controls on dysprosium, terbium, and yttrium have
created acute supply shortages for Western manufacturers. On 6 January 2026,
China announced strengthened export controls on dual-use items to Japan,
effective immediately. Despite 15 years of diversification efforts, Japan
remains approximately 60% dependent on Chinese rare earth imports. For heavy
rare earths, Japan's dependence on China approaches 100%. Meanwhile, the US is
100% reliant on imports for its yttrium requirements.
Preliminary analysis of Kasiya's monazite REE content demonstrates one of the
highest combined heavy rare earth profiles while maintaining NdPr levels
comparable to many REE development projects that have received government
backing.
Table 1: Kasiya vs select REE development projects
Project Company Location DyTb Yttrium NdPr Government Involved(1)
KASIYA Sovereign Malawi 2.9% 11.9% 21.8%
Tanbreez Critical Metals Greenland 3.3% 16.8% 16.6% US
Wimmera Iluka Australia 2.0% 14.0% 20.0% Australia
Phalaborwa Rainbow RE South Africa 1.3% 2.3% 29.3% US
Eneabba Iluka Australia 1.0% 6.0% 22.0% Australia
Balranald Iluka Australia 1.0% 5.0% 22.0% Australia
Songwe Hill Mkango Malawi 0.9% 2.4% 32.8% US
Longonjo Pensana Angola 0.7% 2.6% 22.1% Angola
Vara Mada Energy Fuels Madagascar 0.7% 1.6% 23.8% n/a
Nolans Arafura Australia 0.4% 1.4% 26.4% Australia
Kangankunde Lindian Malawi 0.1% 0.2% 19.4% Australia
1. Government involvement includes financial, political, or commercial
assistance from any government-related entity; Lindian's partner, Iluka's
refinery, is being supported by the Australian Government; Vara Mada is
included for comparability as a significant titanium-feedstock and monazite
project.
Source: See Appendices 4 and 5.
Rare Earths By-product from Existing Process
Total rare earth oxide was analysed for in magnetic heavy mineral concentrates
produced from aircore drilling samples during laboratory analysis for rutile.
The magnetic concentrates were composited by depth interval (0-6m and 6-20m)
to assess variation in mineralogy with depth associated with weathering units.
Separately, monazite concentrates were produced from bulk samples processed
through the standard Kasiya flowsheet. Gravity concentrates were subjected to
electrostatic separation, with the non-conductor stream then subjected to
further gravity separation, followed by magnetic separation to produce a
magnetic monazite concentrate. Duplicate analyses confirmed excellent
repeatability. See Appendix 4 for details. Chemical analysis to determine the
distribution of rare earth oxides was conducted by the Scientific Services
South Africa laboratory.
No additional complex processing was required, so capital requirements will
not include a parallel full rare-earth processing circuit, as required by
primary REE miners. This represents potential by-product economics at
near-zero incremental cost - rare earth recovery as an addition to existing
rutile and graphite processing infrastructure.
WORLD BANK GROUP'S IFC TO COLLABORATE WITH SOVEREIGN ON SUSTAINABLE
DEVELOPMENT FOR KASIYA
During the quarter, the Company signed a strategic Collaboration Agreement
(Agreement) with International Finance Corporation (IFC) to advance the
sustainable development of Kasiya. IFC is a member of the World Bank Group
(World Bank) and the largest global development institution focused on the
private sector in developing countries.
In fiscal year 2025, IFC committed a record US$71.7 billion to private
companies and financial institutions in developing countries, with a total
portfolio of US$68.5 billion as of 30 June 2025, demonstrating its commitment
to financing major projects worldwide.
Under the Agreement:
· IFC will use its expertise to support aligning Kasiya with IFC's
environmental, social, and governance standards. IFC will complement
Sovereign's owner's team and supplement Rio Tinto's input for the development
of the ESIA aligned with global best practice sustainability standards.
· IFC will have rights to finance Kasiya following the collaboration in
accordance with the Agreement and subject to Rio Tinto's rights under the
Investment Agreement. IFC may act as:
o Primary lender and/or mandated co-lead arranger for debt financing of the
Project;
o Lead investor in debt or equity securities financing; and
o The term of the Agreement is 36 months (see ASX Announcement "World Bank
Group's IFC to Collaborate with Sovereign on Sustainable Development for
Kasiya" dated 16 December 2025 for Agreement Particulars).
IFC's track record demonstrates its commitment to partnering with leading
miners, including Sovereign's strategic investor, Rio Tinto, on tier-one
projects.
IFC's Extensive Track Record with World-Class Mining Assets
IFC (www.ifc.org) has decades of experience in the metals and mining sector,
financing some of the world's largest and globally strategic mining projects
across all stages, including construction, production, and expansion. As both
a long-term equity partner and debt provider to major mining companies,
including Sovereign's strategic investor, Rio Tinto, IFC has supported
large-scale mine developments and expansions across multiple continents.
World Bank's Strategic Presence in Malawi
The World Bank Group has a significant presence in Malawi through a Country
Partnership Framework that supports the government's Malawi 2063 Vision. Its
activities include financing major enabling infrastructure like the Mpatamanga
Hydropower Project, which is Malawi's largest energy infrastructure project to
date. IFC also previously played a role in mobilizing financing for the Nacala
transport corridor, which extends through Malawi. The Kasiya Project is
expected to directly benefit from these strategic infrastructure assets.
KASIYA'S GROWING STRATEGIC IMPORTANCE EMPHASISED DURING AND SUBSEQUENT TO
QUARTER
US Strategic Interest and Supply Chain Security
The discovery of rare earth-bearing concentrate at Kasiya comes amid
unprecedented US Government focus on securing critical mineral supply chains
independent of China, which currently dominates approximately 70% of global
rare earth mining and over 90% of rare earth processing.
In April 2025, China added seven rare earth elements, including dysprosium,
terbium, and yttrium, to its export control list, requiring export licenses
and creating further uncertainty for non-Chinese manufacturers. The US
Department of War has responded by agreeing to guarantee minimum prices for
domestic rare earth production, signalling the strategic importance of
alternative supply sources.
The US State Department recently visited Sovereign's operations in Malawi as
part of a broader engagement with strategically significant critical minerals
projects in the region. This visit underscores the growing importance the US
Government places on developing reliable, Western-aligned sources of critical
minerals supply in Africa.
Japan: Renewed Vulnerability to Chinese Supply Restrictions
On 6 January 2026, China announced strengthened export controls on dual-use
items to Japan, effective immediately. Beijing is tightening export licensing
for heavy rare earths including dysprosium, terbium, and yttrium - the same
elements under broader export controls since April 2025.
Japan remains approximately 60% dependent on Chinese rare earth imports. For
heavy rare earths, Japan's dependence on China approaches 100%. Nomura
Research Institute estimates that a three-month disruption to rare earth
supply could cost Japanese industry over US$4 billion.
Complementary Defence and Critical Applications
The identification of rare earth elements at Kasiya creates a unique
multi-commodity critical minerals project where all three products serve
complementary strategic end uses:
· Rutile → Aerospace-grade titanium metal - Kasiya's premium +95%
TiO₂ rutile is direct feedstock for titanium sponge production for aerospace
and defence applications, including aircraft structures, jet engines, and
military hardware.
· Graphite → Battery anodes and defence applications - High-quality
flake graphite is critical for lithium-ion batteries powering defence systems,
as well as traditional applications in refractories and lubricants for
aerospace and industrial uses.
· Rare earths → Permanent magnets for defence systems - Heavy rare
earths are irreplaceable in high-temperature permanent magnets used in
precision-guided munitions, missile systems, fighter jet actuators, and
advanced weapons platforms.
This alignment of complementary strategic end uses positions Kasiya as a
uniquely diversified source of critical minerals essential to Western defence
and energy security.
Figure 2: US State Department's Deputy Assistant Secretary Nick Checker
visiting Sovereign's facilities in Lilongwe, Malawi
NEXT STEPS
During the quarter, various new workstreams were adopted into the DFS. These
include enhanced focus on plant design and configuration, and environmental
and social impact workstreams. These workstreams have been included in the DFS
work program to ensure it meets many of the requirements of potential future
lenders, including development finance institutions, export credit agencies
and potential future offtakers.
The Company will continue to update stakeholders regarding progress,
including:
· Mineral Resource Estimate update;
· Active discussions with US-based and "allied-nation" offtakers of
rutile and graphite;
· Detailed mineralogical characterisation of monazite occurrence and
distribution within the Kasiya orebody;
· Assessment of heavy rare earth concentrate recovery rates through the
proposed Kasiya processing flowsheet;
· Evaluation of potential scale of rare earth production as a
by-product and associated economics.
· Environmental and social impact assessments; and
· Infrastructure and logistics planning.
Competent Person Statement
The information in this announcement that relates to the exploration results
(metallurgy - monazite) is extracted from an announcement dated 21 January
2026, which is available to view at www.sovereignmetals.com.au. Sovereign
confirms that a) it is not aware of any new information or data that
materially affects the information included in the original announcement; b)
all material assumptions included in the original announcement continue to
apply and have not materially changed; and c) the form and context in which
the relevant Competent Persons' findings are presented in this announcement
have not been materially changed from the original announcement.
The information in this announcement that relates to Production Targets, Ore
Reserves, Processing, Infrastructure and Capital and Operating Costs is
extracted from an announcement dated 22 January 2025, which is available to
view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not
aware of any new information or data that materially affects the information
included in the original announcement; b) all material assumptions included in
the original announcement continue to apply and have not materially changed;
and c) the form and context in which the relevant Competent Persons' findings
are presented in this announcement have not been materially modified from the
original announcement.
Forward Looking Statement
This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign'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 Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.
The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.
APPENDIX 1: SUMMARY OF MINING TENEMENTS
As at 31 December 2025, the Company had an interest in the following
tenements:
Licence Holding Entity Interest Type Licence Renewal Date Expiry Term Date(1) Licence Area (km(2)) Status
EL0609 MML 100% Exploration 25/09/2026 25/09/2028 219.5 Granted
EL0582 SSL 100% Exploration 15/09/2025(2) 15/09/2028 69.8 Granted
EL0561 SSL 100% Exploration 15/09/2025(2) 15/09/2028 30.7 Granted
EL0657 SSL 100% Exploration 3/10/2028 3/10/2031 2.3 Granted
EL0710 SSL 100% Exploration 1/02/2027 1/02/2031 38.4 Granted
RTL0035-RTL0045 SSL 100% Retention N/A 26/06/2026 285.2 Granted
EL0528 SSL 100% Exploration N/A 27/11/2025(3) 16.2 Granted
EL0545 SSL 100% Exploration N/A 12/05/2026(3) 24.2 Granted
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited
(1) An exploration licence (EL) covering a preliminary period in accordance
with the Mines and Minerals Act (2023) (2023 Mines Act) is granted an initial
period of five (5) years with the ability to extend by three (3) years on two
occasions (a total term of 11 years). ELs that have come to the end of their
term can be converted by the EL holder into a retention licence (RL) for a
term not exceeding five (5) years subject to meeting certain criteria or any
conditions imposed on the RL.
(2) The Company has submitted two EL applications, APL0739 (16.2km(2)) and
APL0740 (71.5km(2)), which remain pending as at 31 December 2025.
(3) Licence surrender letters submitted for non-core ELs.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 31 December 2025, the Company made payments of
A$312,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (executive salaries, director fees,
superannuation and bonuses (A$214,000)) and provision of serviced office
facilities, company secretarial services and administration services
(A$98,000).
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made the following payments in relation to
mining exploration activities:
Activity A$'000
Feasibility Studies (DFS & trial mining pilot phase (including 4,084
rehabilitation trials))
Drilling related 317
Assaying and Metallurgical Test-work 597
ESG related (including community and social development programs) 1,035
Malawi Operations (site office, personnel, field supplies, equipment, 2,099
vehicles and travel
Total as reported in Appendix 5B 8,132
There were no mining or production activities and expenses incurred during the
quarter ended 31 December 2025.
APPENDIX 4: PRELIMINARY ANALYSIS OF REE DISTRIBUTION IN KASIYA MONAZITE
Sample Type From Magnetic Heavy Minerals Concentrate Monazite product from Non-conductor Stream
Sample ID KYAC0479 KYAC0479 KYAC0486 KYAC0486 Weighted Average 0-6m 0-6m
0-6m 6-20m 0-6m 6-20m
La(2)O(3) % 16.9 17.2 16.9 17.2 17.1 15.4 15.5
CeO(2) % 31.9 39 31.8 38.9 36.8 34.4 34.2
Pr(6)O(11) % 4.2 5.8 5.6 5.9 5.6 5.4 5.4
Nd(2)O(3) % 14.5 16.7 15.8 16.7 16.2 14.6 14.5
Sm(2)O(3) % 3 3.3 3.1 3.2 3.2 2.8 2.8
Eu(2)O(3) % 0 0.2 0 0.2 0.1 0.1 0.1
Gd(2)O(3) % 3.6 2.8 3.4 2.8 3.0 2.6 2.6
Tb(4)O(7) % 2.2 0.6 2.4 0.8 1.2 0.8 0.8
Dy(2)O(3) % 1.7 1.8 1.3 1.7 1.7 2.4 2.4
Ho(2)O(3) % 0.4 0.3 1.2 0.3 0.5 0.3 0.2
Er(2)O(3) % 2.1 1.1 2.1 1.1 1.4 1.5 1.5
Tm(2)O(3) % 0.3 0.1 0.3 0.1 0.2 0.2 0.2
Yb(2)O(3) % 1.8 0.9 1.4 0.8 1.1 1.8 1.8
Lu(2)O(3) % 0.2 0.1 0.2 0.1 0.1 0.3 0.3
Y(2)O(3) % 17.3 10.2 14.5 10.2 11.9 17.2 17.4
APPENDIX 5: COMPANY-SPECIFIC SOURCES
Project Company Status Source Data Link
Balranald Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
Bayan Obo China Northern Rare Earth (Group) High-Tech CO. Ltd Producing Rare Earth Exchanges rareearthexchanges.com/project/bayan-obo/
(8-Feb-25)
Enneaba Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
Kangankunde Lindian Resources Ltd. Development Company Announcement: "Kangankunde Project Stage 1 Outstanding Feasibility https://static1.squarespace.com/static/58a516a859cc689ad6303dc4/t/6681df545eee2944615f3358/1719787358011/
Study Results"
Outstanding+Kangankunde+Stage+1+Feasibility+Study+Results+2741301.pdf
(1-Jul-24)
Longonjo Pensana Plc Development Company Announcement: "Longonjo Mineral Resource estimate upgraded" https://pensana.co.uk/wp-content/uploads/2020/09/longonjo-mineral-resource-estimate-upgraded-14-Sept-2020.pdf
(14-Sept-20)
Maoniuping China Rare Earth Group Producing Rare Earth Exchanges https://rareearthexchanges.com/project/maoniuping/
(8-Feb-25)
Mt Weld Lynas Rare Earths Ltd. Producing Vara Mada Feasibility Study https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
NI43-101 & S-K 1300 Technical Summary
(7-Jan-26)
Mountain Pass MP Materials Corp. Producing SEC FILING: 10-K - Mineral Resource Estimate https://d18rn0p25nwr6d.cloudfront.net/CIK-0001801368/37126578-26fe-49e0-b0d2-12c6053a5a1b.pdf
(28-Feb-25)
Nolans Arafura Rare Earths Ltd Development Company Announcement: "Nolans DFS Delivers Robust Project Economics" https://wcsecure.weblink.com.au/pdf/ARU/02073274.pdf
(7-Feb-19)
Phalaborwa Rainbow Rare Earths Limited Development Company Presentation: "Decision to use SX as the optimal separation route https://www.rainbowrareearths.com/wp-content/uploads/2025/11/Corporate-Presentation-November-2025-FINAL.pdf
for Phalaborwa"
(25-Nov-25)
Songwe Hill Mkango Resources Ltd Development SEDAR FILING"NI43-101 Technical Report on the Songwe Hill Rare Earth Element https://www.sedarplus.ca/csa-party/records/document.html?id=ac89e479364d84c1649c942630b03245c0bf337b2e0f902e6c0267058f330cb6
Project in Malawi"
(18-Aug-22)
Vara Mada Energy Fuels Inc. Development Vara Mada Feasibility Study https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
NI43-101 & S-K 1300 Technical Summary
(7-Jan-26)
Weishan China Rare Earth Group Producing Rare Earth Exchanges rareearthexchanges.com/project/weishan/
(8-Feb-25)
Wimmera Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Sovereign Metals Limited
ABN Quarter ended ("current quarter")
71 120 833 427 31 December 2025
Consolidated statement of cash flows Current quarter Year to date
$A'000
(6 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (8,132) (19,367)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (512) (940)
(e) administration and corporate costs (424) (731)
1.3 Dividends received (see note 3) - -
1.4 Interest received 627 1,324
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - Business Development (425) (792)
1.9 Net cash from / (used in) operating activities (8,866) (20,506)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (18) (89)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (18) (89)
3. Cash flows from financing activities - -
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - -
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 42,854 54,538
4.2 Net cash from / (used in) operating activities (item 1.9 above) (8,866) (20,506)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (18) (89)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held (33) (6)
4.6 Cash and cash equivalents at end of period 33,937 33,937
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 20,937 6,979
5.2 Call deposits 13,000 35,875
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) 33,937 42,854
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 (312)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (8,866)
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) (8,866)
8.4 Cash and cash equivalents at quarter end (item 4.6) 33,937
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 33,937
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 4
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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: 30 January 2026
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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