NEWS RELEASE
I 30 APRIL
2024
MARCH 2024 QUARTERLY
REPORT
Sovereign Metals Limited
(Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to
provide its quarterly report for the period ended 31 March
2024.
Extension to Rutile Mineralisation at Kasiya
· Wide-spaced regional reconnaissance drilling, outside the
current JORC (2012) Mineral Resource Estimate (MRE) area, identified an 8km extension
of mineralisation to the south, which remains open along strike and
at depth.
·
Follow-up drilling is now underway focusing on the
region to the north of the current Resource footprint, with results
expected in the coming weeks.
Representative Bulk Sample Shipped & Project
Optimisation
·
During the quarter, the Company composited,
despatched and delivered a 30 tonne sample representative of the
first probable 10 years of mining from the Kasiya rutile-graphite
project (Kasiya or
the Project) to a leading
engineering consultancy laboratory in South Africa. The ore sample
will be used for advanced material handling tests as part of the
Project optimisation.
·
Sovereign continues its optimisation
test work and technical studies for Kasiya in colaboration with
strategic investor, Rio Tinto.
Key
Appointments
·
During the quarter, Sovereign appointed highly
experienced environmental and social specialist Mr Marco Da Cunha,
as its new Lead Environmental, Social and Governance (ESG) Officer. Mr Da Cunha has almost 20
years of experience in environmental and social management and more
recently was part of Rio Tinto's Simandou iron ore project team in
Guinea.
· Highly experienced, Africa-based social specialist
consultancy, SocialEssence were appointed to the Company's owners
team to lead social and community development programs in Malawi.
SocialEssence has a strong and successful track record of
implementing social responsibility programs across southern Africa,
including at First Quantum Minerals' Zambian project.
·
During the quarter,
Sovereign also made three senior appointments and promotions across
key legal, permitting and technical functions in Malawi,
strengthening the Company's in-country capabilities.
· Subsequent to the quarter, Sovereign announced the appointment of consultant Dr Surinder Ghag to
Sovereign's owner's team as Chief Technology Officer - Graphite. Dr
Ghag will assist Sovereign's graphite strategy in qualifying the
graphite product Kasiya for lithium-ion battery anodes.
Commissioning of Conservation Farming Program in
Malawi
·
During the quarter, Sovereign progressed its
Conservation Farming Program (Program) in Malawi as part of its
sustainability initiatives related to the development of
Kasiya.
· The Program is aimed at improving the livelihoods of local
communities through the creation of successful smallholder
farmers.
·
Subsequent to the quarter, the Company announced
that it is estimated the Program has tripled crop yields in a
season that is predicted have 20% lower yields due to
El Niño weather.
Appointment of Stifel as Joint Broker
· During the quarter, Sovereign appointed Stifel Nicolaus Europe
Limited, a subsidiary of Stifel Financial Corp (Stifel), as joint broker to the
Company. Stifel is a full-service investment bank, offering
securities brokerage, trading, research, underwriting and corporate
advisory services.
· Stifel will work alongside Sovereign's incumbent brokers, Joh.
Berenberg, Gossler & Co KG, and SP Angel Corporate Finance
LLP.
·
At the end of the quarter, Sovereign is in a
strong financial position with cash at bank of approximately A$36.6
million and no debt.
Classification 2.2: This
announcement includes Inside Information
ENQUIRIES
Mr Frank Eagar (South
Africa/Malawi)
Managing Director and CEO
+27 76 753 5377
|
Sam Cordin (Perth)
+61 (0)422 799 087
|
Sapan Ghai (London)
+44 207 478 3900
|
Nominated Adviser on AIM and
Joint Broker
|
|
SP Angel Corporate Finance
LLP
|
+44 20 3470 0470
|
Ewan Leggat
Charlie Bouverat
|
|
|
|
Joint
Brokers
|
|
Stifel
|
+44 20 7710 7600
|
Varun Talwar
|
|
Ashton Clanfield
|
|
|
|
Berenberg
|
+44 20 3207 7800
|
Matthew Armitt
|
|
Jennifer Lee
|
|
|
|
Buchanan
|
+ 44 20 7466 5000
|
EXTENSION TO RUTILE MINERALISATION AT KASIYA
During the quarter, Sovereign
reported southern extensions to the mineralised area at Kasiya.
Hand-auger drilling has identified a number of zones ranging from
~400m to 2km wide over a strike length of approximately
8km.
All newly
defined mineralisation remains open at depth, due to the
limitations of the hand-auger drilling method but are expected to
continue to the saprock boundary normally between 20 and 30m
vertical metres from surface. The multiple mineralised zones
identified remain open along strike both to the north and
south.
These results indicate potential to
expand the already significant, high-grade rutile and graphite MRE
at Kasiya.
Figure
1: Mineralised extensions at
Kasiya
Subsequent
to the quarter, the Company initiated a follow-up 400 metre drill
program north of the known MRE at Kasiya. The 70+ hole hand-auger drill program was
designed to target areas where mineralisation was identified in
earlier wide-spaced regional hand-auger drilling. The target area
is up to 20km north of the current MRE boundary. Four hand-auger
teams were deployed under the supervision of Sovereign's in-country
technical team.
Samples
will be initially processed in the Company's Lilongwe laboratory
facility and then shipped for final analysis at certified
international laboratories. Results from the drill program are
expected in the coming weeks.
Representative Bulk Sample Shipped & Project
Optimisation
During the quarter, the Company
announced that our spiral drilling program has extracted,
despatched and delivered 30 tonnes of ore from Kasiya in Malawi to
Paterson & Cooke (P&C). P&C, based in Cape Town,
South Africa, is a leading engineering consultant in the mining
sector.
Following completion of the
Pre-feasibility Study (PFS), the Company commenced a study
optimisation phase and will then advance to the Definitive
Feasibility Study (DFS).
The material is representative of ore expected to be mined in the
first ten years of production and will be used for advanced bulk
laboratory scale test work to optimise technical elements from the
PFS as part of the study optimisation phase. Areas of focus include
larger-scale pumping, tailings characteristics and
dewatering.
Figure
2: Kasiya 30-tonne sample received at
Paterson & Cook
As a global leader, P&C has over
30 years of industry experience and expertise in slurry pipeline
systems, tailings and mine waste handling, mine backfill, and
mineral processing. P&C's laboratory in Cape Town has a pipe
loop facility that will be used to test specific parameters related
to the mining, transportation, and handling of Kasiya
ore.
Lead ESG Officer Appointed
During the quarter, Sovereign
announced the appointment of highly experienced environmental and
social specialist Mr Marco Da Cunha, as its new Lead Environmental,
Social and Governance (ESG)
Officer.
Mr Da Cunha has almost 20 years of
experience in the field of environmental and social management,
including over a decade preparing Environmental and Social Impact
Assessments (ESIAs) and
Environmental Management Plans for mining projects across Africa.
In addition, Mr Da Cunha has specialist experience in Social Impact
Assessments, and Management Plans, for large scale mining, oil
& gas, and infrastructure projects, throughout Sub-Saharan
Africa.
Recently, Mr Da Cunha was part of
Rio Tinto's Simandou iron ore project team in Guinea. Simandou is
the world's largest undeveloped high-grade iron ore deposit, and
its development will be the largest greenfield integrated mine and
infrastructure investment in Africa. Mr Da Cunha's role at Simandou
involved functioning as international support to the Simandou Mine
Communities and Social Performance Manager in Guinea, and the
support and development of the social management
strategy.
Social Specialist Consultancy Appointed
During the quarter, Sovereign
appointed SocialEssence (Pty) Ltd (SocialEssence) the Company's owners
team to, an Africa-based specialist social performance consultancy,
who will assist in the continued development of the Company's
stakeholder relations, social performance objectives and its
Community and Social Responsibility (CSR) framework.
Sovereign has engaged SocialEssence
to design and execute social performance activities at the Kasiya
project. Founder, Mr Garth Lappeman, has over 16 years of on the
ground social performance planning and implementation experience in
accordance with IFC Performance Standards and World Bank
Environmental, Health and Safety Guidelines. SocialEssence has
worked in a number of countries including Angola, Botswana,
Democratic Republic of Congo, Kenya, Kyrgyzstan, Liberia, Malawi,
Mozambique, Namibia, Panama, Uganda, Sierra Leone, South Africa,
Northern Sudan, Tanzania, Uzbekistan, and Zambia.
Most notably, in Zambia,
SocialEssence's Director was involved from early exploration
through to steady state production of First Quantum Minerals Ltd's
(First Quantum Minerals)
Trident operations, which includes the Sentinel Copper Mine which
is of similar scale to Sovereign's Kasiya project. Mr Lappeman was
responsible for implementing and managing social and community
initiatives for First Quantum Minerals as it established its
large-scale commercial operations.
SocialEssence will:
· prepare Kasiya's Social Impact Assessment and Management Plan
for the DFS and related permitting;
· design, implement and manage social performance activities
including stakeholder engagement, development of key community
relationships;
· prove the feasibility of critical social performance measures
(including early local content, and piloting of livelihood
restoration programs, and piloting of rehabilitation activities to
restore land for agricultural use); and
· align with the Company's ESG Framework.
Key
In-Country Appointments
Also in the
quarter, the Company made three senior appointments and promotions across
key legal, permitting, and technical functions in Malawi. The
appointments have strengthened the Company's in-country
capabilities as it continues to advance
Kasiya.
Mr Maxwell
Kazako has been appointed Acting In-Country Manager following the
promotion of Frank Eagar to Managing Director. Mr Kazako has a
strong background in human resources management, general
administration and government relations. He brings over 18 years of
experience to the role, having worked across Malawian commerce and
industry, including for First Merchant Bank and Malawian
Airlines.
Ms Natasha
Namisengo has been appointed General Legal Counsel. Ms Namisengo is
a qualified lawyer with a Bachelor of Laws (Hons) and is admitted
to practice in the Supreme Court of Malawi. She is also a Master of
Business Administration. Ms Namisengo has prior experience acting
as legal counsel and in company secretary roles in
Malawi.
Mr Pilirani
Bangula has been appointed Legal Counsel - Compliance. Mr Bangula
is a qualified lawyer with 12 years of experience as a legal
practitioner, including five years specifically as in-house legal
counsel. Mr Bangula has wide-ranging experience in compliance,
project oversight and risk management, contract negotiation, and
policy drafting.
Figure 3: (left to right) Mr
Maxwell Kazako, Acting In-Country Manager, Ms Natasha Namisengo,
General Legal Counsel and Mr Pilirani Bangula, Legal Counsel -
Compliance
Appointment of Graphite
Expert
Subsequent to the quarter, Sovereign
appointed consultant Dr Surinder Ghag to Sovereign's owner's team
as Chief Technology Officer - Graphite. Dr Ghag will assist
Sovereign's graphite strategy in qualifying the graphite product
from Kasiya for the lithium-ion battery anode industry.
A
highly qualified metallurgist, Dr Ghag brings 25 years of industry
experience including developing graphite test work programs,
ore-to-anode graphite strategies, anode plant feasibility studies,
and project development and commissioning. Recently, Dr Ghag was
instrumental in developing an environmentally friendly and
commercially viable method for purifying graphite, working
alongside the Australian Government scientific research entity
CSIRO (Commonwealth Scientific and
Industrial Research Organisation). Prior to his work in graphite, Dr Ghag's work
included process engineering at various Australian mineral sands
operations.
A major component of graphite sales
agreements is customer qualification. As Chief Technology Officer
-Graphite, Dr Ghag will be responsible for designing and delivering
graphite downstream test work programs to be aligned with graphite
product development and qualification as Sovereign continues
discussions with battery anode processors, end-users and potential
future offtake partners.
COMMISSIONING OF CONSERVATION FARMING PROGRAM IN
MALAWI
As part of its Environmental,
Social, and Governance (ESG) Strategy in developing Kasiya,
Sovereign progressed itsConservation Farming Program (Program) in Malawi during the
quarter.
Malawi's food security depends on
maize (corn); it is the major staple food crop in Malawi with 60%
of cropped land devoted to its production. Sovereign has
commissioned the initial Program for 90 Malawian maize farmers from
within the project area, of which at least 50% are female. The
Program is to provide training in low-input-cost, high-yield
sustainable farming techniques, with the aim to provide a platform
where successful smallholder farmers can produce sufficient surplus
crops to generate sustainable household income.
Figure 4. Sovereign team
members conducting conservation farming training
Conservation farming as a system
aims to protect soil from erosion and degradation and increase crop
yields. It involves three main principles:
1) minimum soil
disturbance, such as no-till farming,
2) maintenance of a
permanent soil cover, such as cover crops or crop residues
and
3) diversification of
plant species, such as crop rotation.
According to the United States
Agency for International Development, 80% of Malawi's population
are smallholder farmers with livelihoods based on agriculture and
subsistence farming.
This
initiative forms part of Sovereign's ESG Strategy to develop its
tier one Kasiya Rutile-Graphite Project while simultaneously
restoring and improving the livelihoods of local communities. The
Program is being implemented by the Company's experienced team on
the ground, which previously ran a very successful initiative for
First Quantum Minerals Limited's Zambian operations where its
conservation farming program has been effectively operating since
2010. Between 2020 and 2022 harvest crops increased by 67% from
6,000 tonnes to 10,000 tonnes of maize, with over 7,000 farmers in
the program at the end of 2022.
Subsequent to the quarter, Sovereign announced that the
Program has already yielded visibly higher crop growth. Preliminary
yield estimates have been undertaken through a cob-count and sizing
exercise of all 90 farmers. Yields are conservatively estimated at
3.2 tonnes per hectare, tripling average conventional crop yields.
This is despite Malawi's crop yields expected to be 22.5% lower
than average this year due to the El Niño weather
phenomenon.
Increases in maize (corn) production
will be quantified in the coming months during the harvest season.
Farmers participating in the Program expect to begin harvesting in
May 2024, and are looking forward to a bumper harvest, despite the
much drier than usual year caused by El Niño, causing widespread
drought across southern Africa.
Figures 5 & 6 - Left:
planted field using traditional techniques & Right: Field
farmed under the Program showing substantially more crop
growth
APPOINTMENT OF STIFEL AS JOINT BROKER
During the quarter, Sovereign
appointed Stifel Nicolaus Europe Limited, a subsidiary of Stifel
Financial Corp (Stifel), as
joint broker to the Company. Stifel will work alongside Sovereign's
incumbent brokers, Joh. Berenberg, Gossler & Co KG, and SP
Angel Corporate Finance LLP.
Stifel is a full-service investment
bank, offering securities brokerage, trading, research,
underwriting and corporate advisory services.
Stifel has more than 600 investment
banking professionals which allows them to deliver the full
capabilities of Stifel's institutional capital markets platform,
which are among the most highly regarded in the industry across all
major markets in North America and Europe.
In 2023, Stifel was named US
Mid-Market Equity House of the Year by International Financing
Review (IFR).
Sovereign is currently conducting an
optimisation study 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:
· Further appointments to owner's team to build on the Company's
execution capabilities;
· Results of graphite product development, downstream and
qualification test work;
· Regional hand-auger drilling on mineralisation
extensions;
· Progress on the optimisation work streams alongside Rio Tinto
via the project Technical Committee; and
· Community and social development programs.
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
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 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.
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.
The information in this announcement that relates to the
Exploration Results is extracted from an announcement dated 1
February 2024 entitled 'Extensions to Rutile & Graphite
Mineralisation at Kasiya' which is available to view
at www.sovereignmetals.com.au.
Sovereign confirms that a) it is not aware of any new information
or data that materially affects the information included in the
original announcement; b) all material assumptions included in the
original announcement continue to apply and have not materially
changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this report have not
been materially changed from the announcement.
Ore
Reserve for the Kasiya Deposit
|
|
Classification
|
Tonnes
(Mt)
|
Rutile Grade
(%)
|
Contained Rutile
(Mt)
|
Graphite Grade (TGC)
(%)
|
Contained Graphite
(Mt)
|
RutEq. Grade*
(%)
|
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
(Mt)
|
Rutile Grade
(%)
|
Contained Rutile
(Mt)
|
Graphite Grade (TGC)
(%)
|
Contained Graphite
(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
|
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: SUMMARY OF MINING TENEMENTS
As at 31 March 2024, the Company had
an interest in the following tenements:
Licence
|
Holding
Entity
|
Interest
|
Type
|
Licence Renewal
Date
|
Expiry Term
Date1
|
Licence Area
(km2)
|
Status
|
EL0609
|
MML
|
100%
|
Exploration
|
25/09/2024
|
25/09/2028
|
440.5
|
Granted
|
EL0582
|
SSL
|
100%
|
Exploration
|
15/09/20232
|
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
|
15/09/20232
|
15/09/2027
|
124.0
|
Granted
|
EL0657
|
SSL
|
100%
|
Exploration
|
3/10/2025
|
3/10/2029
|
2.3
|
Granted
|
EL0710
|
SSL
|
100%
|
Exploration
|
1/02/20273
|
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)
(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 applications for
EL0582 and EL0561 prior to their renewal dates in accordance with
the Mines Act.
3 During the quarter, the Company was granted
EL0710.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 31 March
2024, the Company made payments of $360,000 to related parties and
their associates. These payments relate to existing remuneration
arrangements (executive salaries, director fees, superannuation and
bonuses ($267,000)) and provision of serviced office facilities,
company secretarial services and administration services
($93,000).
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made
the following payments in relation to mining exploration
activities:
Activity
|
A$'000
|
Drilling related
|
305
|
Assaying and Metallurgical
Test-work
|
342
|
Studies, Reserve/Resource
Estimation, Programs
|
566
|
ESG related
|
302
|
Malawi Operations -
Site Office, Personnel, Field Supplies, Equipment,
Vehicles and Travel
|
819
|
Total as reported in Appendix 5B
|
2,334
|
There were no mining or production
activities and expenses incurred during the quarter ended 31 March
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
|
|
31 March 2024
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to date
(9 months)
$A'000
|
1.
|
Cash flows from operating activities
|
-
|
-
|
1.1
|
Receipts from customers
|
1.2
|
Payments for
|
(2,334)
|
(6,630)
|
|
(a) exploration &
evaluation
|
|
(b)
development
|
-
|
-
|
|
(c)
production
|
-
|
-
|
|
(d) staff
costs
|
(261)
|
(1,368)
|
|
(e) administration and
corporate costs
|
(246)
|
(1,174)
|
1.3
|
Dividends received (see
note 3)
|
-
|
-
|
1.4
|
Interest received
|
488
|
1,232
|
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 - Demerger Costs
|
(6)
|
(73)
|
1.8
|
Other - Business
Development
|
(335)
|
(930)
|
1.9
|
Net
cash from / (used in) operating activities
|
(2,694)
|
(8,943)
|
|
2.
|
Cash flows from investing activities
|
-
|
-
|
2.1
|
Payments to acquire or
for:
|
|
(a) entities
|
|
(b) tenements
|
-
|
-
|
|
(c) property, plant and
equipment
|
(126)
|
(369)
|
|
(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
|
2.4
|
Dividends received (see
note 3)
|
-
|
-
|
2.5
|
Other (provide details if
material)
|
-
|
-
|
2.6
|
Net
cash from / (used in) investing activities
|
(126)
|
(335)
|
|
3.
|
Cash flows from financing activities
|
-
|
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 securities
|
-
|
(252)
|
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
|
-
|
40,346
|
|
4.
|
Net
increase / (decrease) in cash and cash equivalents for the
period
|
|
|
4.1
|
Cash and cash equivalents at
beginning of period
|
39,437
|
5,564
|
4.2
|
Net cash from / (used in) operating
activities (item 1.9 above)
|
(2,694)
|
(8,943)
|
4.3
|
Net cash from / (used in) investing
activities (item 2.6 above)
|
(126)
|
(335)
|
4.4
|
Net cash from / (used in) financing
activities (item 3.10 above)
|
-
|
40,346
|
4.5
|
Effect of movement in exchange rates
on cash held
|
18
|
3
|
4.6
|
Cash and cash equivalents at end of period
|
36,635
|
36,635
|
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
|
118
|
129
|
5.2
|
Call deposits
|
36,517
|
39,308
|
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)
|
36,635
|
39,437
|
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
|
(360)
|
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)
|
(2,694)
|
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)
|
(2,694)
|
8.4
|
Cash and cash equivalents at quarter
end (item 4.6)
|
36,635
|
8.5
|
Unused finance facilities available
at quarter end (item 7.5)
|
-
|
8.6
|
Total available funding
(item 8.4 + item 8.5)
|
36,635
|
|
|
|
8.7
|
Estimated quarters of funding available (item 8.6 divided
by item 8.3)
|
>10
|
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 April 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.