REG - Sovereign Metals Ltd - September 2024 Quarterly Report
30/10/2024 07:00
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RNS Number : 1508K Sovereign Metals Limited 30 October 2024
NEWS RELEASE I 30 OCTOBER 2024
SEPTEMBER 2024 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 30
September 2024.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
Rio Tinto Invests Additional A$19m Increasing Shareholding to 19.9%
· In July 2024, Rio Tinto invested a further A$18.5 million via the
exercise of options to increase its shareholding in Sovereign to 19.76%
· In September 2024, Rio Tinto made an additional investment of A$0.7
million to increase its shareholding to 19.9% pursuant to Rio Tinto's first
right of refusal on equity issues up to a maximum of 19.9%
Sovereign Presents at Minerals Security Partnership Event During UN General
Assembly
· In September 2024, Sovereign presented at the inaugural 2024 MSP
Finance Meeting during the UN General Assembly in New York following an
invitation from the U.S. Department of State and SAFE Center for Critical
Minerals
· Panel discussion titled "Mining Titans and New Horizons" took place
between Rio Tinto CEO, Mr Jakob Stausholm, and Sovereign Chair, Mr Ben
Stoikovich
Spiral Plant Successfully Installed for Graphite Offtake Discussions
· Industrial scale spiral concentrator plant successfully installed and
commissioned at Sovereign's expanded laboratory and testing facility in
Lilongwe, Malawi
· Graphite pre-concentrate from spiral plant will facilitate ongoing
testwork and offtake discussions with lithium-ion battery makers and
traditional graphite markets
Hydraulic Mining Trial Commenced Following Successful Dry Mining Trial
· In July 2024, dry mining trial confirms Kasiya can be efficiently
mined using standard mobile excavators and trucks, demonstrating operational
alternatives
· In August 2024, hydraulic mining trial commenced at Kasiya Pilot Site
test pit as part of ongoing PFS Optimisation Study
Outstanding Battery Anode Material Produced from Kasiya Graphite
· Very high quality Coated Spherical Purified Graphite (CSPG) anode
material produced from Kasiya graphite concentrate with performance
characteristics comparable to highest quality natural graphite battery
material produced by dominant Chinese anode manufacturers
· Outstanding results are attributed to unique geological setting of
highly weathered Kasiya orebody compared to fresh rock hosted graphite
deposits including very low levels of sulphur and other impurities
Infill Drilling Program to Upgrade Kasiya Resource
· During the quarter, Sovereign undertook an infill drilling program
designed to upgrade Kasiya's Mineral Resource Estimate (MRE) and facilitate
conversion of Ore Reserves from Probable to Proven category for upcoming study
phase
· Program focused on southern Kasiya, which is the area intended to
supply ore feed for first eight years of production; all planned drilling was
completed subsequent to the quarter
Corporate Update
· Following increased U.S. investor and strategic interest in Kasiya,
Sovereign commenced trading on OTCQX Market in the quarter providing access to
broader eligible U.S. investor base
· Following the additional A$19 million invested by Rio Tinto,
Sovereign remains in a strong financial position with cash at bank of
approximately A$41 million and no debt
Classification 2.2: This announcement includes Inside Information
Enquires
Frank Eagar, Managing Director & CEO Sapan Ghai, CCO
South Africa / Malawi London
+27 21 065 1890 +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 Brokers
Stifel +44 20 7710 7600
Varun Talwar
Ashton Clanfield
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Buchanan + 44 20 7466 5000
Rio Tinto Invests Additional A$19 million Increasing Shareholding to 19.9%
In July 2024, Rio Tinto Mining and Exploration Limited (Rio Tinto) exercised
all its share options for proceeds of A$18.5 million (before costs) to
increase its shareholding in Sovereign to 19.76%.
In September 2024 and following the exercise of its options, Rio Tinto made an
additional investment of A$0.7 million in Sovereign increasing its
shareholding in Sovereign to 19.9%. Pursuant to the Investment Agreement
between Rio Tinto and Sovereign, Rio Tinto has a first right of refusal on
equity issues up to 19.9%
The Company will use the proceeds from Rio Tinto's additional strategic
investments to continue advancing Sovereign's Tier 1 Kasiya Rutile-Graphite
Project (Kasiya or the Project) in Malawi. This includes progressing the
current PFS Optimisation Study for Kasiya which is focused on the development
of a world-class mine capable of supplying critical minerals to the titanium
pigment, titanium metal and lithium-ion battery industries. Under the
Investment Agreement between Sovereign and Rio Tinto, Rio Tinto continues to
provide assistance and advice on technical and marketing aspects of Kasiya.
Sovereign Presents at Minerals Security Partnership Event During UN General
Assembly
In September 2024, Sovereign was invited to and participated in a panel
discussion at the inaugural 2024 MINVEST / Minerals Security Partnership (MSP)
Finance Meeting (Meeting) in New York, U.S., during the United Nations General
Assembly (UNGA).
The panel titled "Mining Titans and New Horizons" was moderated by Dr Zainab
Usman, Senior Fellow and Director, Carnegie Endowment for International Peace
and participants were Mr Jakob Stausholm, CEO, Rio Tinto, and Mr Ben
Stoikovich, Chair, Sovereign.
The discussion highlighted factors that attract major mining companies and
investment, exploring how initiatives like the MSP can support investment flow
into resource-rich countries, while spurring economic development.
Speaking at the Meeting on its importance, U.S. Deputy Secretary of State, The
Hon. Kurt Campbell, commented: "If we are going to be successful ultimately
not only in the clean energy revolution but generally in technology, it will
be because of this pursuit."
Figure 1 (Left to Right): Dr Zainab Usman, Senior Fellow and Director,
Carnegie Endowment for International Peace, Rio Tinto CEO Jakob Stausholm,
Sovereign Chair Mr Ben Stoikovich at the MSP Finance Meeting in New York
Sovereign attended the Meeting following an invitation to present, alongside
Rio Tinto CEO Mr Jakob Stausholm, by the Minerals Investment Network for Vital
Energy Security and Transition (MINVEST), a public-private partnership between
the U.S. Department of State and SAFE Center for Critical Minerals. The
Meeting took place during UNGA in New York, presenting an opportunity for
convergence of several MSP government officials, as well as representatives
from their development finance institutions, and export credit agencies.
About the MSP
In June 2022, the U.S. Government and key partner countries announced the
establishment of the MSP - a collaboration of 14 countries and the EU to
catalyse public and private investment in responsible critical minerals supply
chains globally.
About MINVEST
MINVEST is a public-private partnership between the U.S. Department of State
and The Center for Critical Minerals Strategy (SAFE) to promote public-private
dialogue and spur investment in strategic mining, processing, and recycling
opportunities that adhere to high environmental, social, and governance
standards.
Spiral Plant Successfully Installed for Graphite Offtake Discussions
During the quarter, the Company successfully installed and commissioned an
industrial-scale spiral concentrator plant at the Company's laboratory and
testing facility in Lilongwe, Malawi. The plant enables Sovereign to process
material from the test pit mined as part of the ongoing Pilot Mining and Land
Rehabilitation (Pilot Phase) at Kasiya.
Figure 2: Spiral Plant installed at Sovereign's Lilongwe facility
The spiral plant will prepare a graphite gravity concentrate from the Pilot
Phase test pit's run of mine at a bulk scale. The concentrate will then be
sent to specialised laboratories where flotation, purification, spheronisation
and coating testwork for the battery anode segment in line with Sovereign's
strategy to commercialise Kasiya's graphite by-product. Graphite concentrate
will also be provided to traditional industrial graphite users, including
refractories and foundries, expandable graphite, graphite foil, brake lining
pads, and lubrication.
Hydraulic Mining Trial Commenced Following Successful Dry Mining Trial
In July 2024, Sovereign announced that as part of the Pilot Phase, the dry
mining trial concluded with a test pit successfully excavated at the Pilot
site. The test pit covered the planned area of 120 metres by 110 metres and
was excavated to a depth of 20 metres through the weathered ore at Kasiya. The
dry mining trial confirmed that Kasiya ore can be efficiently mined using
conventional dry-mining techniques and a simple mobile excavator fleet. The
dry mining fleet consisted of four excavators, 20 trucks and a support fleet
including two bulldozers and a motor grader. Approximately 170,000 bench cubic
metres of material was dry mined during the trial. Steady-state operations
envisage 24 million tonnes of material being mined annually.
The saprolite-hosted mineralisation at Kasiya is largely homogenous and has
relatively consistent physical properties throughout the 1.8 billion tonnes
MRE that is reported in accordance with JORC (2012). Data collected from the
pilot phase confirmed that no drilling, blasting, crushing, grinding or
milling will be required prior to stockpiling material for processing into
rutile and graphite products; an indication of potentially lower mining costs
and a lower carbon footprint comparable to hard rock deposits.
Figure 3: Kasiya Pilot Phase Test Pit mined to 20 metres depth
Figure 4: Kasiya mining and front-end processing vs. hard rock peers
Subsequently, in August 2024, the Company commenced a hydraulic mining trial
at the test pit. The temporary water storage pond, constructed and sealed with
natural clay from excavated material, was filled with six million litres of
groundwater, predominantly from eight water boreholes on site.
This water was used during the hydraulic mining trial and continuously
recycled from the constructed holding cells, where sand and fine fractions are
stored respectively prior to the planned deposition and rehabilitation
testwork.
Figure 5: Hydraulic mined material (slurry) flowing freely to the collection
point in the bottom of the sump
Outstanding Battery Anode Material Produced from Kasiya Graphite
In September 2024, Sovereign announced an update on the downstream testwork
conducted at leading independent consultancy ProGraphite GmbH (ProGraphite) in
Germany.
The test work program demonstrated that CSPG produced from Kasiya natural
flake graphite has performance characteristics comparable to the leading
Chinese natural graphite anode materials manufacturers such as BTR New
Material Group (BTR). Electrochemical testing of the CSPG samples at a leading
German institute achieved first cycle efficiencies (FCE) of 94.2% to 95.8%,
with results above 95% a key specification for highest quality natural
graphite anode materials under the Chinese standard.
Following spheronisation and purification testwork which produced spherical
graphite with very high purities of 99.99%, the purified spherical graphite
(PSG) samples were pitch coated and carbonised to produce CSPG.
The coating process produced CSPG with very low BET (low specific surface
area) specific surface area of 2.0m2/g and lower and high tap densities of
1.11-1.18g/cm3 (Table 1). A low specific surface area is required for anode
materials to minimise the loss of lithium in forming a secondary protective
coating on the anode material known as the Solid Electrolyte Interphase (SEI).
The pitch coating process also assists in increasing the density of the anode
material as measured by the tap density - a higher density assists in storing
more electrical energy in the lithium-ion battery.
Table 1: CSPG Results
CSPG Sample
Sample Units 1 2 3
D10 µm 11.05 11.08 14.86
D50 µm 17.46 17.27 23.71
D90 µm 26.75 27.5 36.72
Tap Density g/cm(3) 1.11 1.12 1.18
BET (low specific surface area) m(2)/g 1.6 2.0 1.4
Electrochemical testing of the CSPG samples at a leading German institute
achieved FCE of 94.2% to 95.8%, with results above 95% a key specification for
highest quality natural graphite anode materials under the Chinese standard. A
very high FCE minimises lithium losses in the initial formation cycles of a
lithium-ion battery, supporting battery life. Kasiya CSPG also met the
criteria for an initial discharge capacity of more than 360mAh/g (ampere-hours
per gram) for highest quality anode materials, with initial capacities of
362-366mAh/g. These results will be used to fast-track discussions with
potential offtakers.
Table 2: Electrochemical Results - China CSPG Standard
CSPG Sample China Standard GB/T-24533-2019
1 2 3 Grade I Grade II Grade III
First Cycle Efficiency % 95.8 94.2 95.8 ≥95 ≥93 ≥91
Initial Capacity mAh/g 362 364 366 ≥360 ≥360 ≥345
Furthermore, the testwork demonstrated that CSPG produced from Kasiya natural
flake graphite has initial performance characteristics comparable to the
leading Chinese natural graphite anode materials manufacturers such as BTR.
BTR has a 20-year track record in the production of lithium-ion battery anode
materials, is a dominant player in the market and has recently concluded anode
material offtake agreements with global automotive companies including Ford.
BTR's highest specification CSPG materials, that have low swelling, long cycle
life, good processability and outstanding electrochemical performance include
their GSN17 and LSG17 products (with D50 of 17.0+/- 1.5μm).
Table 3: Electrochemical Results - BTR CSPG products
CSPG Sample BTR(3)
1 2 GSN 17 LSG 17
First Cycle Efficiency % 95.8 94.2 ≥95 ≥94
Initial Capacity mAh/g 362 364 ≥360 ≥355
D50 μm 17.5 17.3 17.0+/- 1.5 17.0+/- 1.5
Infill Drilling Program to Upgrade Kasiya Resource
An infill drilling program to infill the southern part of Kasiya commenced
during the quarter and was completed in October 2024. The drilling was focused
on the designated pits proposed to provide ore feed in the first eight years
of the Project's production schedule. Ore Reserves in these areas are expected
to convert from the Probable to Proven category with an upgrade of the current
MRE from Indicated to the Measured category under the JORC (2012) Code.
Offsite laboratories in South Africa and Australia will assay all samples for
rutile and graphite. The drilling program's results and subsequent Resource
upgrade are expected in early 2025. Kasiya is already the world's largest
rutile deposit and second-largest flake graphite deposit, with over 66% of the
current MRE in the Indicated category.
An offset 200x200 metre program was designed, resulting in an average drill
spacing of 142 metres. The offset spacing had the advantage of allowing
analysis of geology and grade continuity in both orthogonal and diagonal
directions.
The drilling program consisted of:
1. 281 aircore holes drilled over 5,607m, with an average depth of 20
metres
2. 309 hand auger holes drilled over 1,280m, with an average depth of 4
metres
3. 30 push tube and diamond core holes drilled over 663m, providing
samples for verification twinning and geotechnical sampling with an average
depth of 22 metres
The current MRE identifies broad and continuous high-grade rutile and graphite
zones, extending over a vast area of more than 201 km². Rutile mineralisation
is concentrated in laterally extensive, near-surface, flat "blanket" deposits
in areas where the weathering profile remains intact and largely uneroded.
Graphite is largely depleted near the surface, with grades generally improving
at depths greater than 4 metres, down to the base of the saprolite zone, which
averages around 22 metres.
Corporate Update
During the quarter, Sovereign's shares commenced trading on the OTCQX® Best
Market (OTCQX) under the ticker symbol SVMLF. The OTCQX is the highest market
tier of OTC Markets on which over 12,000 U.S. and global securities trade.
Sovereign previously traded on the OTC Pink Market and has been upgraded to
the OTCQX as it meets high financial standards, follows best-practice
corporate governance and has demonstrated compliance with applicable
securities laws. Trading on OTCQX began on 5 July 2024 and will enhance the
visibility and accessibility of Sovereign to U.S. investors.
Next Steps
Sovereign is currently conducting a PFS Optimisation Study, including the
Pilot Phase, prior to advancing to the DFS. The Company aims to become the
world's largest, lowest cost and lowest-emissions producer of two critical
minerals - titanium (rutile) and graphite. The Company plans to update the
market on the progress of the following in coming months.
· Ongoing progression of the Pilot Phase, including:
o Completion of hydraulic mining trials;
o preparation of additional bulk samples for product qualification; and
o backfilling of test pits and soil rehabilitation.
· Further graphite testwork results as the Company continues to
advance the qualification of its graphite product for the lithium-ion battery
and traditional graphite sectors;
· Progress on the optimisation work streams alongside Rio Tinto via
the project Technical Committee;
· MRE upgrade in early 2025; and
· Additional community and social development programs.
Competent Person Statement
The information in this announcement that relates to the Exploration Results
is extracted from announcements dated 8 May 2024, 15 May 2024 and 4 September
2024, which are 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 report have not
been materially changed from the announcement.
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from Sovereign's 2024 Annual Report 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. 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 2024 Annual
Report continue to apply and have not materially changed; and c) the form and
context in which the relevant Competent Persons' findings are presented in
2024 Annual Report have not been materially changed from the disclosure in the
2024 Annual Report.
The information in this announcement that relates to Ore Reserves is extracted
from Sovereign's 2024 Annual Report. 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 2024 Annual Report continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons' findings are
presented in 2024 Annual Report have not been materially changed from the
disclosure in the 2024 Annual Report.
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 from the Kasiya PFS ** Any minor summation
inconsistencies are due to rounding
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile
cut-off grade
Classification Resource Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
Indicated 1,200 1.0% 12.2 1.5% 18.0
Inferred 609 0.9% 5.7 1.1% 6.5
Total 1,809 1.0% 17.9 1.4% 24.4
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 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.
APPENDIX 1: SUMMARY OF MINING TENEMENTS
As at 30 September 2024, 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 15/09/2027 141.3 Granted
EL0492 SSL 100% Exploration 29/01/2025 29/01/2025 454.9 Granted
EL0528 SSL 100% Exploration 27/11/2025 27/11/2025 16.2 Granted
EL0545 SSL 100% Exploration 12/05/2026 12/05/2026 24.2 Granted
EL0561 SSL 100% Exploration 15/09/2025 15/09/2027 61.9 Granted
EL0657 SSL 100% Exploration 3/10/2025 3/10/2029 2.3 Granted
EL0710 SSL 100% Exploration 1/02/2027 1/02/2031 38.4 Granted
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited
(1) An exploration licence (EL) covering a preliminary period in accordance
with the Malawi Mines and Minerals Act (No 8. Of 2019) (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. On 28 June 2024, the Mines and Minerals Act (2023) (New Act) was
gazetted and came into force. As previously disclosed, The New Act introduces
amendments to improve transparency and governance of the mining industry in
Malawi. Sovereign notes the following updates in the New Act which may affect
the Company going forward: (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 Act has removed 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 Act.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 30 September 2024, the Company made payments of
A$310,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (executive salaries, director fees,
superannuation and bonuses (A$212,000)) 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
Optimisation, Pilot Phase, Reserve/Resource Estimation 4,245
Drilling related 602
Assaying and Metallurgical Test-work 310
ESG related 905
Malawi Operations - Site Office, Personnel, Field Supplies, Equipment, 1,684
Vehicles and Travel
Total as reported in Appendix 5B 7,746
There were no mining or production activities and expenses incurred during the
quarter ended 30 September 2024.
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 2024
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 (7,746) (7,746)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (276) (276)
(e) administration and corporate costs (644) (644)
1.3 Dividends received (see note 3) - -
1.4 Interest received 381 381
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 (489) (489)
1.9 Net cash from / (used in) operating activities (8,774) (8,774)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (736) (736)
(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 (736) (736)
3. Cash flows from financing activities 19,174 19,174
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 (37) (37)
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 19,137 19,137
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 31,562 31,562
4.2 Net cash from / (used in) operating activities (item 1.9 above) (8,774) (8,774)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (736) (736)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 19,137 19,137
4.5 Effect of movement in exchange rates on cash held 4 4
4.6 Cash and cash equivalents at end of period 41,193 41,193
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 4,153 253
5.2 Call deposits 37,040 31,309
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) 41,193 31,562
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 (310)
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) (8,774)
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) (8,774)
8.4 Cash and cash equivalents at quarter end (item 4.6) 41,193
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 41,193
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 5
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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: 30 October 2024
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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