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
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Enquires
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Frank Eagar, Managing Director & CEO
South Africa / Malawi
+27 21 065 1890
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Sapan Ghai, CCO
London
+44 207 478 3900
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Nominated Adviser on AIM and
Joint Broker
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
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Joint
Brokers
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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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.
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Table 1: CSPG Results
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CSPG Sample
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Sample
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Units
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1
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2
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3
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D10
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µm
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11.05
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11.08
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14.86
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D50
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µm
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17.46
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17.27
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23.71
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D90
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µm
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26.75
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27.5
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36.72
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Tap
Density
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g/cm3
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1.11
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1.12
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1.18
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BET
(low specific surface area)
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m2/g
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1.6
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2.0
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1.4
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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.
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Table 2: Electrochemical Results - China CSPG
Standard
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CSPG Sample
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China Standard
GB/T-24533-2019
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1
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2
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3
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Grade I
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Grade II
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Grade III
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First Cycle Efficiency
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%
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95.8
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94.2
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95.8
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≥95
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≥93
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≥91
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Initial Capacity
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mAh/g
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362
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364
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366
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≥360
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≥360
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≥345
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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).
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Table 3: Electrochemical Results - BTR CSPG
products
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CSPG Sample
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BTR3
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1
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2
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GSN 17
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LSG 17
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First Cycle Efficiency
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%
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95.8
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94.2
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≥95
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≥94
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Initial Capacity
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mAh/g
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362
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364
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≥360
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≥355
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D50
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μm
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17.5
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17.3
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17.0+/-
1.5
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17.0+/-
1.5
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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.
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Ore
Reserve for the Kasiya Deposit
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Classification
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Tonnes
(Mt)
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Rutile Grade
(%)
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Contained Rutile
(Mt)
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Graphite Grade (TGC)
(%)
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Contained Graphite
(Mt)
|
RutEq. Grade*
(%)
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Proved
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-
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-
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-
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-
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-
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-
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Probable
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538
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1.03%
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5.5
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1.66%
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8.9
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2.00%
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Total
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538
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1.03%
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5.5
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1.66%
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8.9
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2.00%
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* 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
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Kasiya Total Indicated +
Inferred Mineral Resource Estimate at 0.7% rutile cut-off
grade
|
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Classification
|
Resource
(Mt)
|
Rutile Grade
(%)
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Contained Rutile
(Mt)
|
Graphite Grade (TGC)
(%)
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Contained Graphite
(Mt)
|
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Indicated
|
1,200
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1.0%
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12.2
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1.5%
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18.0
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Inferred
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609
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0.9%
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5.7
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1.1%
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6.5
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Total
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1,809
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1.0%
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17.9
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1.4%
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24.4
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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
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Interest
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Type
|
Licence Renewal
Date
|
Expiry Term
Date1
|
Licence Area
(km2)
|
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,
Vehicles and Travel
|
1,684
|
|
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
$A'000
|
Year to
date
(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 securities
|
(37)
|
(37)
|
|
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
at the end of the quarter
(as shown in the consolidated statement of cash flows) to the
related items in the accounts
|
Current
quarter
$A'000
|
Previous
quarter
$A'000
|
|
5.1
|
Bank balances
|
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 in
item 1
|
(310)
|
|
6.2
|
Aggregate amount of payments to
related parties and their associates included in
item 2
|
-
|
|
Note: if any amounts are shown in items 6.1 or 6.2, your
quarterly activity report must include a description of, and an
explanation for, such payments.
|
|
7.
|
Financing facilities
Note: the term "facility'
includes all forms of financing arrangements available to the
entity.
Add notes as necessary for an
understanding of the sources of finance available to the
entity.
|
Total
facility amount at quarter end
$A'000
|
Amount
drawn at quarter end
$A'000
|
|
7.1
|
Loan facilities
|
-
|
-
|
|
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
|
|
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters of funding
available must be included in item 8.7.
|
|
8.8
|
If item 8.7 is less than
2 quarters, please provide answers to the following
questions:
|
|
|
8.8.1 Does
the entity expect that it will continue to have the current level
of net operating cash flows for the time being and, if not, why
not?
|
|
|
Answer: Not applicable
|
|
|
8.8.2 Has
the entity taken any steps, or does it propose to take any steps,
to raise further cash to fund its operations and, if so, what are
those steps and how likely does it believe that they will be
successful?
|
|
|
Answer: Not applicable
|
|
|
8.8.3 Does
the entity expect to be able to continue its operations and to meet
its business objectives and, if so, on what basis?
|
|
|
Answer: Not applicable
|
|
|
Note: where item 8.7 is less than 2 quarters, all of
questions 8.8.1, 8.8.2 and 8.8.3 above must be
answered.
|
Compliance statement
1 This statement has
been prepared in accordance with accounting standards and policies
which comply with Listing Rule 19.11A.
2 This statement
gives a true and fair view of the matters disclosed.
Date:
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.