REG - Sovereign Metals Ltd - September 2023 Quarterly Report
31/10/2023 07:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231031:nRSe7940Ra&default-theme=true
RNS Number : 7940R Sovereign Metals Limited 31 October 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 31 October 2023
SEPTEMBER 2023 QUARTERLY REPORT
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is
pleased to provide its quarterly report for the period ended 30 September
2023.
HIGHLIGHTS
Pre-Feasibility Study confirms Kasiya's market leading position in Two
Critical Raw Materials
· Natural Rutile - the highest-grade, purest, natural titanium
feedstock
o The world's largest rutile deposit
o Positioned to become the world's largest rutile producer at 222kt per
annum
o Natural rutile facing major global supply deficit over the next 5 years
· Natural Graphite - a key component of an electric vehicle
(EV) battery
o The world's second largest flake graphite deposit
o Potentially one of the world's largest natural graphite producers
outside of China at 244kt per annum
o China recently announces graphite export restrictions at a time when the
anode graphite market is moving into deficit with demand rapidly growing in
the lithium-ion battery and EV sectors
· Compelling project economics with significant upside
potential:
o Post-tax NPV(8) of US$1,605m and post-tax IRR of 28%
o Average EBITDA of US$415m per annum
o Initial Probable Ore Reserves declared of 538Mt, representing only 30%
of the total Mineral Resource
o Substantial production rate and mine life upside exists as the PFS
modelling was limited to only 25 years
· Forecast cash operating costs of US$404/t of product would
position Kasiya as the lowest cost producer of rutile and graphite globally
Rio Tinto invests $40.6m to become a 15% Strategic Investor
· Rio Tinto made an investment of A$40.6 million in Sovereign
resulting in an initial 15% shareholding plus options to increase their
position to potentially 19.99%* within 12 months
· Rio Tinto's investment represents a significant step towards
unlocking a major new supply of low-CO(2)-footprint natural rutile and flake
graphite
· Under the Investment Agreement, Rio Tinto will provide
assistance and advice on technical and marketing aspects of Kasiya including
with respect to Sovereign's graphite co-product, with a primary focus on
spherical purified graphite for the lithium-ion battery anode market
· The Company is formally establishing the Technical Committee
with Rio Tinto following release of the PFS
· Industry redefining best in class social & environmental
advantages
o Extremely low CO(2)-footprint operation incorporating climate-smart
attributes including hydro-mining with renewables power solution
o Lifecycle CO(2) emissions expected to be lowest in class versus existing
and planned operations and versus alternative synthetic products
o Low-impact operation with mineralisation at surface, zero-strip ratio,
low reagent usage, simple process flowsheet and progressive land
rehabilitation
· The Company advancing into an optimisation phase prior to
moving to the Definitive Feasibility Study (DFS) with the Company's strategic
investor, Rio Tinto
Key Management Appointments to Drive Project Optimisation and Development at
Kasiya
· Appointment of experienced African based mining executive, Mr
Frank Eagar, as the new Managing Director and CEO
· Existing Managing Director Dr Julian Stephens has
transitioned to Non-Executive Director
· Key technical appointments of experienced African
engineering, social and environmental teams to work on project optimisation
and advancing the development of the Kasiya Project
Strong Support from the Government of Malawi:
· Government of Malawi has applauded the timely investment by
Rio Tinto and marked it as a milestone towards realising the country's
aspirations of growing the mining sector as a priority industry
· PFS demonstrates Kasiya's potential to provide significant
socio-economic benefits for Malawi including fiscal returns, job creation,
skills transfer and sustainable community development initiatives
· With mining being one of the key pillars for growth under
Malawi's economic development strategy (Agriculture, Tourism, Mining - ATM
Policy) and the potential for Kasiya to be a project of national
significance, the Government has constituted an Inter-ministerial Project
Development Committee to work alongside the Company to assist in the
permitting process
ENQUIRIES
Mr Frank Eagar (South Africa/Malawi) Sam Cordin (Perth) Sapan Ghai (London)
+61 (0)422 799 087
+44 207 478 3900
Managing Director and CEO
+27 76 753 5377
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Harry Davies-Ball
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Tavistock PR +44 20 7920 3150
RIO TINTO INVESTS $40.6M TO BECOME A 15% STRATEGIC INVESTOR
Sovereign completed a A$40.6 million strategic investment by Rio Tinto Mining
and Exploration Limited (Rio Tinto) to advance Sovereign's world-class Kasiya
Rutile-Graphite Project in Malawi.
Rio Tinto subscribed for 83.5 million new fully paid ordinary shares (Shares)
in Sovereign at a price of A$0.486 per Share for aggregate proceeds of A$40.6
million. Rio Tinto's subscription price reflected a 10% premium to the 45-day
volume weighted average price on the ASX as at close on 14 July 2023 and
resulted in Rio Tinto holding approximately 15% of the ordinary shares of the
Company.
The subscription also involved Rio Tinto being granted options to acquire 34.5
million further Shares in Sovereign by 21 July 2024 which could result in Rio
Tinto's shareholding in the Company potentially increasing up to 19.99%*.
Under the Investment Agreement, Rio Tinto will provide assistance and advice
on technical and marketing aspects of Kasiya including with respect to
Sovereign's graphite co-product, with a primary focus on spherical purified
graphite for the lithium-ion battery anode market. It has also been agreed
with Rio Tinto that if Sovereign is raising debt finance for the development
of the Project, Sovereign and Rio Tinto will negotiate, in good faith,
financing arrangements in order to put in place an acceptable mine
construction funding package.
KASIYA - AN INDUSTRY-LEADING CRITICAL MINERALS PROJECT
The PFS confirmed Kasiya as a potential major critical minerals project with
an extremely low CO(2)-footprint delivering major volumes of natural rutile
and graphite while generating significant economic returns.
Kasiya, located in central Malawi, is the largest natural rutile deposit and
second largest flake graphite deposit in the world. Sovereign is aiming to
develop a low-CO(2) and sustainable operation to supply highly sought-after
natural rutile and graphite to global markets.
Results of the PFS demonstrated Kasiya's potential to become the world's
largest rutile producer at 222kt per annum and one of the world's largest
natural graphite producers outside of China at 244kt per annum based on an
initial 25 year life-of-mine (LOM).
Kasiya's PFS modelling was limited to only 25 years meaning substantial
production rate and mine life upside exists, with an initial Probable Ore
Reserves declared of 538Mt, only representing 30% of the total Mineral
Resource.
Highly Compelling Economics
The PFS delivered compelling economics with a post-tax NPV8 of US$1.6 Billion
and post-tax IRR of 28%. This long-life, multi-generational operation was
modelled to initially generate over US$16 Billions of revenue and provide an
average annual EBITDA of US$415 Million per annum.
Kasiya has an average life-of-mine FOB (Nacala) operating cost of US$404 per
tonne of product produced (rutile plus graphite) positioning it as the lowest
cost producer of rutile and graphite globally.
Kasiya's low operating costs are achieved through deposit size and grade, zero
strip ratio from surface, location and excellent existing operational
infrastructure. Kasiya is strategically located in close proximity to Malawi's
capital city Lilongwe, providing access to a skilled workforce and industrial
services.
Products will be exported to global markets via the deep water port of Nacala
along the existing Nacala Logistics Rail Corridor (NLC). This existing
infrastructure provides significant capital cost savings for Kasiya compared
to many other undeveloped minerals projects.
The capital to first production is US$597 Million which increased from the
Expanded Scoping Study released in June 2022. This is primarily due to
bringing forward capital items previously planned for Stage 2 including a rail
spur, full-scale water dam, integrated power and optimised graphite
production, as well as generally enhanced engineering plus global cost
inflation.
Industry-Redefining Environmental and Social Advantages
Kasiya has the potential to provide two products that both have very
favourable low carbon in-use advantages. Kasiya has a geological benefit with
both natural graphite and rutile hosted in soft, friable saprolite material at
surface that can be mined, beneficiated, and purified with a considerably
lower lifecycle carbon footprint than hard-rock operations or synthetic
graphite and synthetic rutile production.
The lifecycle CO(2) emissions for Kasiya's two products are expected to be the
lowest in class versus existing and planned operations and versus alternative
synthetic products.
The operation was engineered to achieve an extremely low CO(2)-footprint
incorporating climate-smart attributes including hydro-mining with a
renewables power solution. Based off a low-impact operation with
mineralisation at surface, zero-strip ratio, low reagent usage, simple process
flowsheet and progressive land rehabilitation
Strong market fundamentals
Natural rutile is the purest, highest-grade natural form of TiO(2) and is the
preferred technical feedstock in manufacturing titanium pigment and producing
titanium metal. Natural rutile is a genuinely scarce commodity with no other
large rutile dominant deposits having been discovered in the last half
century.
The market for natural rutile is already in supply deficit and is forecast to
widen further considerably in the next 5 years.
The rutile price adopted in the PFS's financial model is based on TZMI's real
2023 price forecast and apportioned to volumes sold into the two defined
markets (bagged welding at 25% premium to the bulk pigment market). The LOM
average price applied was US$1,484 per tonne FOB Nacala. Currently, producers
including Iluka Resources have reported even higher rutile sales prices of
US$1,908 per tonne in the last quarter (Quarter ended 30 September 2023).
Flake graphite has been identified as a critical and strategic material due to
its essential applications in the aerospace and energy sectors, and due to its
role as the primary anode component in lithium-ion batteries. Natural graphite
market moving into deficit as demand rapidly grows in the lithium-ion battery
and EV sectors.
Leading EV producer Tesla Inc.'s (Tesla) "Master Plan 3" outlines its proposed
path to reach a sustainable global energy economy through end-use
electrification and sustainable electricity generation and storage. In the
plan, Tesla suggests that the world would need to produce 10.5Mt of graphite
per year and estimates US$104 Billion of new graphite mining investment is
required to achieve its target (source: Tesla Master Plan 3 (April 2023)).
Kasiya's graphite holds a distinct advantage due to its low cost and
CO(2)-footprint. Industry's interaction with supply chain participants
indicates the progression towards higher proportions of natural graphite use
in battery anodes will be supported by its lower cost and superior
environmental credentials. The environmental footprint of EVs will become an
increasingly important market consideration as EV penetration accelerates,
noting that synthetic graphite has a carbon footprint orders of magnitude
higher than flake graphite. Synthetic graphite is made from needle coke
through the high energy intensive refining of oil and coal.
KEY MANAGEMENT APPOINTMENTS TO DRIVE PROJECT OPTIMISATION
Effective from 20 October 2023, the Company appointed Mr Frank Eagar as
Managing Director and Chief Executive Officer (CEO). Dr Julian Stephens, has
transitioned to a Non-Executive Director of Sovereign, remaining as a
consultant assisting and supporting the incoming technical and management
team.
Mr Eagar has over 20 years' experience in the financing, permitting,
development and operation of mining projects with a strong focus in southern
Africa.
Mr Eagar is a Chartered Accountant who has gained extensive corporate,
commercial and technical experience in the mining sector throughout his
career. Mr Eagar has previously held a number of senior executive positions in
the resources sector, more recently with African mining focused private equity
firm AMED Funds, which included acting as Chief Financial Officer (CFO) for
AMED's controlled company, Central Copper Resources PLC (Central Copper).
Prior to Central Copper, Mr Eagar was the CEO (and prior to that the CFO) of
Baobab Steel Limited (Baobab) another AMED controlled company, where he
managed the completion of a DFS and a joint venture with the World Bank's IFC
to procure strategic investors and raise project finance for Baobab's US$1
Billion, fully permitted, integrated 500ktpa Steel and Vanadium Project in
Mozambique.
Mr Eagar joined Sovereign in December 2022 as General Manager in Malawi, where
he has already expanded the team with a focus on Malawian nationals, developed
strong relationships with Government and demonstrated a clear understanding of
the Kasiya Project and its development landscape.
Sovereign has also made several key technical appointments as the Company
transitions into project optimisation and development of the Kasiya Project
and is poised to become a significant supplier of natural rutile and graphite.
These key appointments bring a strong track record of successful large-scale
project development and operations management, as well as extensive experience
in southern Africa.
These management changes come at an important time for the Company as it
transitions from the PFS into the next phase of project optimisation,
community and stakeholder engagements and ultimately the completion of a DFS.
STRONG GOVERNMENT SUPPORT
The Malawian government identifies mining as one of the sectors that could
potentially generate higher economic growth for the country. The country has
several significant mineral resources that could be sustainably mined to
contribute to Malawi's economic goals.
Kasiya has the potential to deliver significant social and economic benefits
for Malawi including fiscal returns, job creation, skills transfer and
sustainable community development initiatives.
The Government of Malawi strongly supports Sovereign and its development of
the Kasiya project. Malawi's Minister of Mines and Minerals, The Honourable
Monica Chang'anamuno, publicly applauded the timely investment by Rio Tinto
and marked it as a milestone towards realising the country's aspirations of
growing the mining industry as promoted in the Malawi Vision 2063, which
isolates mining as a priority industry.
With mining being one of the key pillars for growth under Malawi's economic
development strategy (Agriculture, Tourism, Mining - ATM Policy) and the
potential for Kasiya to be a project of national significance, the Government
has constituted an Inter-ministerial Project Development Committee to work
alongside the Company to assist in the permitting processes.
Competent Person Statement
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from an announcement dated 5 April 2023 entitled 'Kasiya
Indicated Resource Increased by over 80%' which is available to view at
www.sovereignmetals.com.au (http://www.sovereignmetals.com.au) and is based
on, and fairly represents information compiled by Mr Richard Stockwell, a
Competent Person, who is a fellow of the Australian Institute of Geoscientists
(AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an
independent consulting company. The original announcement is available to view
on 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 Operating Costs, Metallurgy
(rutile and graphite) is extracted from an announcement dated 28 September
2023 entitled 'Kasiya Pre-Feasibility Study Results' which is available to
view at www.sovereignmetals.com.au (http://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 and technical parameters underpinning the
Production Target, and related forecast financial information derived from the
Production Target 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 presentation have not been
materially modified from the Announcement.
* Based on ordinary shares on issue at the time of investment
Ore Reserve for the Kasiya Deposit
Classification Tonnes Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite RutEq. Grade**
(Mt)
(%)
(Mt)
(Mt)
(%)
Proved - - - - - -
Probable 538 1.03% 5.5 1.66% 8.9 2.00%
Total 538 1.03% 5.5 1.66% 8.9 2.00%
** RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t)
+ Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile
Price (US$1,484/t). All assumptions are taken from this Study ** Any minor
summation inconsistencies are due to rounding
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
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.
APPENDIX 1: RELATED PARTY PAYMENTS
During the quarter ended 30 September 2023, the Company made payments of
$295,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (executive salaries, director fees,
superannuation and bonuses ($127,000)), business development services
($46,000) and provision of serviced office facilities, company secretarial
services and administration services ($122,000).
APPENDIX 2: SUMMARY OF MINING TENEMENTS
As at 30 September 2023, 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 25/09/2024 25/09/2028 440.5 Granted
EL0582 SSL 100% Exploration 15/09/2023(2) 15/09/2027 285.0 Granted
EL0492 SSL 100% Exploration 29/01/2025 29/01/2025 935.4 Granted
EL0528 SSL 100% Exploration 27/11/2023 27/11/2025 16.2 Granted
EL0545 SSL 100% Exploration 12/05/2024 12/05/2026 53.2 Granted
EL0561 SSL 100% Exploration 15/09/2023(2) 15/09/2027 124.0 Granted
EL0657 SSL 100% Exploration 3/10/2025 3/10/2029 2.3 Granted
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited & NGX
Exploration Limited
(1) An exploration licence (EL) covering a preliminary period in accordance
with the Malawi Mines and Minerals Act (No 8. Of 2019) (Mines Act) is granted
for a period not exceeding three (3) years. Thereafter two successive periods
of renewal may be granted, but each must not exceed two (2) years. This means
that an EL has a potential life span of seven (7) 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 of up to 5 years subject to meeting certain criteria.
(2) The Company submitted an extension application for EL0582 and EL0561
prior to the renewal date in accordance with the Mines Act .
As previously announced by the Company, the Government of Malawi has
introduced a new Mines and Minerals Bill (2023) (New Bill) which has been
passed by the Malawian Parliament and received Presidential Assent, however,
it awaits publication in the Malawi Gazette before coming into full force. The
New Bill will replace the current Mines Act. The New Bill introduces
amendments to improve transparency and governance of the mining industry in
Malawi. Sovereign notes the following updates in the New Bill which may affect
the Company in the future: (i) ELs will now be granted for an initial period
of 5 years with the ability to extend by 3 years on two occasions (total 11
years); (ii) the Malawian Government maintains a right to free equity
ownership for large-scale mining licences but the New Bill proposes to remove
the automatic free government equity ownership with the right to be a
negotiation matter; and (iii) A new Mining and Regulatory Authority will be
responsible for implementing the objectives of the New Bill.
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made the following payments in relation to
mining exploration activities:
Activity A$'000
Drilling (60)
Assaying and Metallurgical Test-work (59)
Studies and Reserve/Resource Estimation (1,111)
Tenement Rents and Rates (19)
Malawi Operations - Site Office, Personnel, Field Supplies, Equipment, (625)
Vehicles and Travel
Total as reported in Appendix 5B (1,874)
There were no mining or production activities and expenses incurred during the
quarter ended 30 September 2023.
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 30 September 2023
Consolidated statement of cash flows Current quarter Year to date
$A'000
(3 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (1,874) (1,874)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (327) (327)
(e) administration and corporate costs (513) (513)
1.3 Dividends received (see note 3) - -
1.4 Interest received 72 72
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8.1 Other - NGX Demerger Costs (25) (25)
1.8 Other - Business Development (271) (271)
1.9 Net cash from / (used in) operating activities (2,938) (2,938)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(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 34 34
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities 34 34
3. Cash flows from financing activities 40,598 40,598
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 (239) (239)
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 40,359 40,359
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 5,564 5,564
4.2 Net cash from / (used in) operating activities (item 1.9 above) (2,938) (2,938)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 34 34
4.4 Net cash from / (used in) financing activities (item 3.10 above) 40,359 40,359
4.5 Effect of movement in exchange rates on cash held 2 2
4.6 Cash and cash equivalents at end of period 43,021 43,021
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
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 189 176
5.2 Call deposits 42,832 5,388
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) 43,021 5,564
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 295
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
$A'000
$A'000
available to the entity.
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) (2,938)
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) (2,938)
8.4 Cash and cash equivalents at quarter end (item 4.6) 43,021
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 43,021
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) >10
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Not applicable
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 31 October 2023
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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 QRFUAVAROSURORARecent news on Sovereign Metals
See all newsREG - Sovereign Metals Ltd - March 2025 Quarterly Report
AnnouncementREG - Sovereign Metals Ltd - DFS Geotechnical Programs in Progress
AnnouncementREG - Sovereign Metals Ltd - Holding(s) in Company
AnnouncementREG - Sovereign Metals Ltd - Sovereign Completes A$40 Million Placement
AnnouncementREG - Sovereign Metals Ltd - Response to Media Speculation
Announcement