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STRIKE RESOURCES LIMITED Interim / Quarterly Report 2021
65855_rns_2021-08-01_b40f43a9-2ce5-41e8-a0d1-01f2cb8ea43b.pdf
Interim / Quarterly Report
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QUARTERLY REPORT
COMPANY DETAILS
ABN: 94 088 488 724
PRINCIPAL AND
REGISTERED OFFICE Level 2 31 Ventnor Avenue West Perth WA 6005 T | (08) 9214 9700 F | (08) 9214 9701 E | [email protected] W | www.strikeresources.com.au
ASX CODE SRK
SECURITIES ON ISSUE
270,000,000 shares 1,000,000 Broker's Options ($0.15, 30 Nov 2023) 12,000,000 Directors' Options ($0.185, 3 Dec 2023) 1,500,000 SIP Options ($0.21, 23 Dec 2023) 1,000,000 Broker's Options ($0.33, 3 Jun 2024)
BOARD OF DIRECTORS
Farooq Khan (Executive Chairman) William Johnson (Managing Director)
Malcolm Richmond (Non-Executive Director)
Matthew Hammond (Non-Executive Director) Victor Ho
(Executive Director)
COMPANY SECRETARY
Victor Ho [email protected]
AUTHORISED FOR RELEASE BY - FOR FURTHER INFORMATION:
William Johnson Managing Director E| [email protected] T| (08) 9214 9700
2 August 2021
HIGHLIGHTS
Paulsens East Iron Ore Project, Pilbara (Western Australia)
- Mining Proposal, Project Management Plan and Native Vegetation Clearance Permit approved by DMIRS.
- Ground water licence issued by DWER to support mining operations.
- Secured order for 13 prime mover trucks and 52 trailers for haulage.
- Initiated investments in certain long lead time items, including telecommunications infrastructure and ore processing equipment.
- Early Contractor Involvement Services Agreements executed with Lucas Total Contract Solutions for civil works, mining, crushing and screening and Dynamic Drill and Blast (ASX:DDB) for drill and blast.
- Key permits now received allowing pre-mining site works to commence.
- Strike now in the process of finalising port allocations for export and offtake arrangements prior to making a 'final investment decision'.
- First shipment of ore targetted for early 2022.
Apurimac Iron Ore Project (Peru)
- First shipment of (up to) 35,000 tonnes of Apurimac Premium Lump DSO from Peru now imminent with bulk carrier vessel chartered for arrival at Port of Pisco on 11 August and transportation of ore from near port stockpile facility into Pisco Port Terminal underway ahead of ship loading.
- The targeted ~65% Fe Apurimac Premium Lump DSO product expected to deliver a significant premium over 62% Fe Benchmark Price vs. Estimated FOB cost of ~US$80 per tonne.
- Ongoing shipments planned targeting near term annualised production of ~250,000 tonnes.
- Ausenco finalising their review of 2008 and 2010 Pre-Feasibility Studies, which includes gap and trade-off analyses and an identification of opportunities to reduce project capex and increase project execution security associated with a 15 - 20 Mtpa production profile of a 68% Fe concentrate using a slurry pipeline from mine to port.
Spin-Out of Lithium Energy Limited (ASX:LEL)
• Successful spin-out of battery minerals (Solaroz Lithium Project (Argentina) and Burke Graphite Project (Queensland)) assets with completion of $9 million (at $0.20 per share) IPO and admission to ASX of Lithium Energy. Strike retains 43% shareholding (escrowed to 19 May 2023).
Capital Raising
• In June 2021, the Company completed a $5 million share capital raising (22,865,732 shares at $0.22 per share) to fund ramp-up of iron ore production activities at Apurimac in Peru and to advance the development of Paulsens East (including the securing of long lead time items).
About Strike Resources Limited (ASX:SRK)
Strike Resources Limited is an ASX listed resource company which is developing the 1.5Mtpa Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has commenced mining of high-grade surface deposits and entered into an offtake agreement with an international iron-ore trading firm to export the "Apurimac Premium Lump" DSO product of ~65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was recently spunout of Strike under a $9m IPO. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.
PROJECTS
Paulsens East Iron Ore Project (Pilbara, Western Australia) (Strike – 100%)
The Paulsens East Project is located ~10 kilometres from Northern Star Resources Limited's (ASX:NST) Paulsens Gold Mine, ~230 kilometres by road east of Onslow and ~600 kilometres by road south of Port Hedland (refer Figure 1).
Figure 1: Paulsens East Project Location, West Pilbara
On 30 October 2020, Strike announced the completion of the Feasibility Study on Paulsens East, which confirmed strong project economics for a 1.5 Million tonnes per annum (Mtpa) production rate over an initial 4 year life-ofmine (LOM) with direct shipping ore (DSO) (lump and fines) product trucked to Port Hedland for export.1
1 Refer Strike's ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns
The Project consists of a three-kilometre-long outcropping high-grade hematite ridge, containing a JORC Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe).2
As part of the completion of the Feasibility Study, part of the JORC Indicated Mineral Resource has been converted to a maiden JORC Probable Ore Reserve of 6.2 million tonnes at 59.9% Fe, 7.43% SiO2, 3.77% Al2O3 and 0.086% P (at a cut-off grade of 55% Fe).
Figure 2: Paulsens East Hematite Ridge
Project Production Details
Strike plans a 1.5 Mtpa production schedule of DSO over a minimum four-year LOM (totalling approximately 6 Mt). This initial production target has been determined to facilitate fast track production of lower strip-ratio material at first instance, with the opportunity to expand production once the initial production target is met and is underpinned by the Probable Ore Reserve of 6.2 Million tonnes (within the Indicated Mineral Resource of 9.6 Million tonnes).
An open cut mine is proposed, with an average forecast waste to ore ratio of 3.0 over the first four years of mining. Ore will be crushed and screened to produce DSO Lump and Fines products. Head Grade analyses of a 90:10 blend of high-grade hematite:waste ore (from bulk samples collected from a test pit in August 20203 ) by ALS Metallurgy Iron Ore Technical Centre confirmed that a 62% Lump product low in alumina and a 59% Fines product with a moderate level of alumina can be achieved from the Ore Reserve. Metallurgical testwork indicates that a 75/25 (or higher) Lump/Fines split can be expected where Lump ore typically attracts a significant price premium compared to Fines. An on-site laboratory will be established at the proposed mine site for ongoing analysis of ore samples to manage grade control and ensure consistency of product grades.
The Feasibility Study envisages processed Lump and Fines products being trucked from the mine to the Utah Point Multi-User Bulk Handling Facility at Port Hedland (Utah Point), predominantly by sealed road, where it will be stockpiled prior to being loaded directly into ocean going vessels (OGV's) for export to customers.
Mining, crushing and screening and haulage operations are proposed to be undertaken by specialist contractors with overall supervision and management provided by Strike employed personnel.
2 Refer Strike's ASX Announcement dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project
3 Refer Strike's ASX Announcement dated 2 September 2020: Test Pit and Bulk Samples to Advance Offtake Agreements Completed at Paulsens East
Since the completion of the Feasibility Study, the Company has recommenced discussions with the owners and operators of the Onslow Marine Support Base (OMSB) in Onslow where the Company has an existing letter of intent with the Port Operator4 to ship iron ore from that port. The Company has also entered into an MOU with an experienced transshipment services operator to determine the logistics and potential cost savings of conducting shipping operations out of the OMSB given the significantly lower distances involved in transporting iron ore to Onslow versus Port Hedland (~230 km vs ~600 km). The possible use of Onslow as an export port also provides an alternate/supplementary export facility given potential capacity constraints at the Multi-User Bulk Handling Facility at Utah Point in the future.
Marketing
Strike has continued to actively engage with a range of potential customers and off-take partners with regard to securing the best possible terms for sale of its Paulsens East products.5 These parties include Chinese steel mills, global established iron ore traders as well as a number of other marketing groups.
In addition to negotiating optimal pricing formulae and payment terms for its products, Strike has held discussions with a number of the above parties regarding the potential to contribute project financing facilities and/or prepayments for iron ore shipments.
Whilst these discussions remain ongoing and confidential, Strike can confirm that:
- There is strong interest from multiple parties to secure regular supplies of iron ore from the Project;
- Negotiations have advanced from multiple off-take offers to a short list of three parties regarding off-take of ore from Paulsens East, with product samples now having been provided from the bulk samples previously extracted by the Company last year.
- Term Sheets have been drafted and reviewed with these parties, some of which include the provision of substantial pre-payment and working-capital facilities, which would act to reduce the amount of additional capital which the Company would otherwise need to raise to advance Paulsens East.
- It expects to execute binding off-take and accompanying pre-payment and/or working capital finance facility at the time it makes a 'final investment decision' with respect to the Project.
Activities During Quarter
- Secured approval of its Mining Proposal from WA Department of Mines, Industry Regulation and Safety (DMIRS), being the last of the key permits required for Strike to commence pre-mining site works at Paulsens East.6
- Secured approval of the Project Management Plan (relating to mines safety compliance) from DMIRS7 .
- Secured approval of Native Vegetation Clearance Permits from DMIRS.
- Secured ground water licence from the WA Department of Water and Environmental Regulation (DWER) to support the extraction and usage of water for mining operations.
- Executed Early Contractor Involvement Services Agreements with Lucas Total Contract Solutions for civil works (haulage road and mine sites), mining, crushing and screening and Dynamic Drill and Blast (ASX:DDB) for drill and blast.8
- Executed outstanding Access Agreements with Pastoral Lease and Mining Tenement stakeholders, paving the way for the grant of all necessary Miscellaneous Licences relating to the Project and the approval of the Mining Proposal and NVCP.8
4 Refer also Strike's ASX Announcements dated 19 November 2019: Beadon Creek Onslow Selected as Preferred Port for Paulsens East and 28 November 2019: Excellent Scoping Study Results for Paulsens East Iron Ore Project
5 Refer Strike's ASX Announcement dated 16 November 2020: Paulsens East Iron Ore – Marketing Update
6 Refer Strike's ASX Announcement dated 2 August 2021: Mining Proposal Approved for Paulsens East Iron Ore Mine
7 Refer Strike's ASX Announcement dated 15 April 2021: DMIRS Approval of Project Management Plan for Paulsens East Iron Ore Mine
8 Refer Strike's ASX Announcement dated 28 June 2021: Contractors Selected and Access Agreements Secured for Paulsens East
- Secured an order for 13 prime mover trucks and 52 trailers for haulage to ensure that these 60 metre long Ultra Quad road trains (each with 150 tonne haulage capacity) are available for the Project when production commences.9
- Initiated investments in certain long lead time items, including telecommunications infrastructure and ore sorting equipment to be used as part of the processing flowsheet. 9
- Entered into an MOU with an experienced transshipment services operator to determine the logistics and potential cost savings of conducting shipping operations out of OMSB in Onslow.9
- Advanced the recruitment of key operational personnel to the Paulsens East Owner's Team, with a number of appointments having been made in health, safety, and environment.
- Continued to progress final design activities for various infrastructure works, including the haulage and access roads, the intersection of the haulage road with Nanutarra Road, the mine village, mining operations centre (MOC), fuel supply systems and water bores, storage and distribution systems.
Activities Proposed for Next Quarter
The following Paulsens East related milestones, activities and work programmes are planned/underway for the September 2021 quarter:
- Concluding contract negotiations with preferred providers in respect of mine site construction, haulage and access roads construction, drill and blast, mining, crushing and haulage services, fuel supply and on-site fuel facility installation, camp facilities, Wyloo Airstrip and other related infrastructure and services in support thereof.
- Continued engagement with the Pilbara Ports Authority (PPA) to secure allocation for iron ore exports from the Utah Point Multi-User Bulk Handling Facility at Port Hedland and other PPA managed ports.
- Continued engagement with the owners and operators of the OMSB in Onslow and associated logistics as an alternate/supplementary export facility.
- Finalising port solution for export of iron ore from Paulsen East, taking into account factors such as haulage costs, port infrastructure, shipping schedules and available capacity.
- Concluding one or more offtake and/or project financing agreements.
- Finalising all outstanding applications for permits, licences and other regulatory approvals required for proposed mining operations (ie. DMIRS, DWER, Main Roads WA, Shire of Ashburton).
- Development of appropriate systems and processes for Health and Safety, Environmental Management, Heritage Management, Risk Management, Contractor Management and Compliance and expansion of Strike 'Owner's Team'.
- The Strike Board making a 'final investment decision' to proceed with Paulsens East mine construction and development.
ASX Announcements
For further reference, refer to Strike's ASX Announcements on Paulsens East released during the quarter and to the date of this report:
- 2 August 2021: Mining Proposal Approved by DMIRS for Paulsens East Iron Ore Mine
- 28 June 2021: Contractors Selected and Access Agreements Secured for Paulsens East
- 28 May 2021: Completion of \$5 Million Capital Raising
- 20 May 2021: Strike Continues to Advance Paulsens East Iron Ore Project Towards Final Investment Decision
- 15 April 2021: DMIRS Approval of Project Management Plan for Paulsens East Iron Ore Mine
9 Refer Strike's ASX Announcement dated 20 May 2021: Strike Continues to Advance Paulsens East Iron Ore Project Towards Final Investment Decision
Apurimac Iron Ore Project (Peru) (Strike – 100%)
Strike's Apurimac Iron Ore Project in Peru is recognised as one of the highest grade, large scale magnetite projects in the world with the potential to support the establishment of a significant iron ore operation.
Figure 4: Strike Apurimac Iron Ore Project, showing route of proposed Andahuaylas Railway
A JORC (2012) Indicated and Inferred Mineral Resource has been defined at the main Opaban 1 and Opaban 3 concessions of 269Mt of iron ore at 57.3% Fe (142 Mt Indicated Resource at 57.8% Fe and 127 Mt Inferred Resource at 56.7% Fe)10 . In addition to the current JORC resource, there is significant exploration potential given the deposits are open at depth and along strike (with very promising drill results including 154m @ 62% Fe) with extensive undrilled gravity and magnetic anomalies.
The Ministry of Transport and Communications (MOTC) in Peru has engaged an international consortium of engineering companies (Consorcio Ferrocarril Del Sur, the Southern Railway Consortium) to complete a Feasibility Study on the construction of a multi-user railway from the inland regional capital city of Andahuaylas in southern Peru, to the mineral export Port of San Juan de Marcona on the west coast of Peru (the Andahuaylas Railway).11 Strike has provided data and information from its own railway study to the Southern Railway Consortium. The MOTC has previously advised that, subject to final approval of the Apurimac Railway Feasibility Study by the Peruvian Government expected in Q3 2021 and completion of more detailed engineering works, construction of the Andahuaylas Railway is proposed to commence in 2024 and be ready for operation by 2028
The preferred route (577km in length) to Andahuaylas terminates directly at the Andahuaylas Airport near Strike's Apurimac Project. The development of the Andahuaylas Railway will provide development options for Strike's Apurimac Project, which would be one of the biggest users of the railway.
10 Refer Strike's ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard
11 Refer Strike's ASX Announcements dated:
• 8 February 2018: Peru Government Plans Railway Linking Strike's Apurimac Iron Ore Project to Port
• 24 October 2018: Peru Government Awards \$13 Million Tender for Andahuaylas Railway Study Linking Strike's Apurimac Iron Ore Project to Port
• 18 April 2019: Strike Enters into Cooperation Agreement with Peru Railway Consortium
• 5 December 2019: Railway Project Gathers Momentum in Peru – Positive Outlook for Strike's Apurimac Iron Ore Project
Mining Operations at Apurimac
Strike has been mining high-grade surface deposits of direct shipping ore (DSO) material from Apurimac via the process of engagement of local miners who are permitted, under Peruvian mining legislation, to mine up to 350 tonnes per day (or ~125,000 tonnes per annum) of iron ore from specific portions of a mining concession. Strike has engaged local trucking operators to transport DSO from the mine site to third-party crushing plants, including recently, a 3,000t per day capacity crushing plant at Humay, located close to the Port of Pisco. The Humay crushing plant has also been used to stockpile crushed DSO prior to transport into port for ship loading.
Strike is targeting annualised sales in the near term of ~250,000 tonnes and continues to advance securing additional crushing and transport capacity to meet this annualised target. Given the current strong demand and premium prices for high grade Lump Iron Ore there is a clear opportunity for Strike to generate significant nearterm cashflows from this operation.
Approximately 50,000 tonnes of high-grade DSO (Apurimac Premium Lump) has been mined and transported for local crushing and screening.
The total free on board (FOB) cost of the Apurimac Premium Lump product at the Port of Pisco is approximately US$80 per tonne, including mining, crushing and screening, haulage, port and administration costs.
Current Mining Operations at Apurimac
Current Mining Operations at Apurimac
Loading of Apurimac Premium Lump DSO from crushed stockpile
Offtake Agreement
The Company has executed an Offtake Agreement (for up to 300,000 tonnes per annum over a 2 year term) with Good Importing International Pty Limited (GII), an international iron ore trading company currently involved in iron ore offtake into China from various countries including Australia, Russia and South Africa; GII have also previously been involved as an offtake partner for a number of Australian iron ore producers including Mt Gibson Iron, Karara Mining, Pluton Resources and Shree Minerals.12 The Offtake Agreement also incorporates a US$2 million prepayment facility (which Strike has already drawn down) to fund first ore on ship. The US$2 million prepayment will be offset against the proceeds of the first two shipments of iron ore with a profit share arrangement for the first shipment of iron ore.
12 Refer Strike's ASX Announcement dated 14 April 2021: Peru Iron Offtake Agreement Signed with US\$2 Million Prepayment
Terms of the Offtake Agreement include market reflective pricing referenced to relevant S&P Global Platts pricing indices and market-typical lump premium and impurity penalties, on a Cost and Freight (CFR) basis for delivery into China. The Apurimac Premium Lump product specifications under the Offtake Agreement are as follows:
| Apurimac Premium LumpProduct Specifications | % |
|---|---|
| Fe | 65.00 |
| SiO2 | 2.30 |
| Al2O3 | 0.70 |
| LOI | 2.20 |
| P | 0.06 |
| S | 0.08 |
| Moisture | 3.00 |
Trucks loaded with Apurimac Premium Lump DSO headed to Port
Maiden Iron Ore Shipment in August 2021
Strike has chartered a Bulk Carrier Vessel for its first shipment of up to 35,000 tonnes of Apurimac Premium Lump DSO product. The chartered vessel is scheduled to arrive at the Port of Pisco on or around 11 August 2021.
Ore is currently being transported by trucks from the stockpile area at Humay to a dedicated storage area within the Pisco Port Terminal. Haulage of the ore to the Port will be completed in advance of the vessel's scheduled arrival with loading of approximately 30,000 to 35,000 tonnes of Apurimac Premium Lump on to ship expected to take approximately 5 days. The ore will be exported to China pursuant to Strike's Offtake Agreement with GII.
The high grade (~65% Fe) Apurimac Premium Lump DSO product is expected to provide a significant premium to the 62% Fe benchmark price, which is currently ~US$210 per tonne; the current Lump premium of ~US$0.50 per dry metric tonne unit translates to an additional ~$US30 per tonne over the current benchmark price.
Following this first shipment, Strike is targeting ongoing shipments with the objective of securing annualised sales in the near term of ~250,000 tonnes from Apurimac.
Strike is continuing to advance securing additional mining, crushing and transport capacity to meet this annualised target.
Loading Apurimac Premium Lump DSO for Transport to Pisco Port
Trucks lining up to collect Apurimac Premium Lump Ore for Transport to Pisco Port
Trucks loaded with Apurimac Premium Lump DSO arriving at Pisco Port
Pisco Port, Peru
Updating Feasibility Studies
Strike completed a Pre-Feasibility Study on the Apurimac Project in 200813 (subsequently updated in 201014), which indicated the clear potential for development of a world class iron ore project, with competitive capital costs and very low operating costs:
- The 2008 Pre-Feasibility Study undertaken by Snowden Mining Industry Consultants and SKM utilised a proposed slurry pipeline configuration as the preferred transport solution (under the study). For further details, refer to Strike's ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru;
- Further infrastructure studies were undertaken by Ausenco Sandwell and SRK Consulting in 2010 with the purpose to further compare the economics of a slurry pipeline versus railway infrastructure solutions at various production levels. For further details, refer to Strike's ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike's December 2010 Quarterly Report.
Strike believes that it would be appropriate to advance the development of the Apurimac Project via updating the project economics of a proposed slurry pipeline in parallel to the development of the Andahuaylas Railway by the Peruvian Government (referred to above) by updating its previous Pre-Feasibility Studies, taking account of current cost estimates, technology advancements (since 2010) and current/expected market conditions. This will provide Strike with maximum optionality to extract full commercial value from the Apurimac Project in the shortest time framework recognising the current very strong iron ore market.
In this regard, Strike has engaged Ausenco, an industry leader in global engineering services, to commence works to review and update these previous studies. The principal focus of such works will be to examine the capital and operating costs associated with a 15 - 20 million tonne per annum production profile of a 68% Fe concentrate using a slurry pipeline for the transport of such ore to the coast for export.
13 Refer Strike's ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru
14 Refer Strike's ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike's December 2010 Quarterly Report
The Company believes that this work is an important step in advancing this globally significant project, in particular given the current strong demand for iron ore and the widely reported intent of Chinese steel mills to secure long term strategic sources of high-grade iron ore from countries other than Australia and Brazil.
Ausenco is finalising their review of the 2008 and 2010 studies, which includes gap and trade-off analyses and an identification of opportunities to reduce project capex and increase project execution security.
Strike will then work with Ausenco to finalise the scope for the next stage of works to examine in more detail the capital and operating costs associated with a 15 - 20 million tonne per annum production profile of a concentrate product using a slurry pipeline for transport to port.
Subsequent to the completion of a successful updated Pre-Feasibility Study, Strike will then consider its commercial options including advancing the Apurimac Project to a Bankable Feasibility Study (BFS) stage.
ASX Announcements
For further reference, refer to Strike's ASX Announcements on the Apurimac Project released during the quarter and to the date of this report:
- 28 July 2021: Maiden Iron Ore Shipment in Peru Imminent - Vessel Chartered and Ore Moving to Port for Loading
- 29 June 2021: Haulage of Iron Ore to Port Commences For First Production Shipment in Peru
- 28 May 2021: Completion of \$5 Million Capital Raising
- 14 April 2021: Peru Iron Offtake Agreement Signed with US\$2 Million Prepayment
CORPORATE
Successful Spin-Out of Lithium and Graphite Assets and $9 Million IPO and ASX Listing of Lithium Energy Limited (ASX:LEL)
Strike's spin-out company, Lithium Energy Limited (Lithium Energy) (ASX Code : LEL), was admitted to the Official List of ASX on 17 May 202115 and commenced quotation 19 May 202116, after the successful completion of Lithium Energy's $9 million (at $0.20 per share) initial public offering (IPO) under a Prospectus (dated 30 March 202117). The fully underwritten IPO (by Canaccord Genuity) was significantly oversubscribed and supported by a strong mix of institutional investors, resource focused funds, sophisticated and retail investors and significant participation by Strike shareholders, who were given a priority pro-rata entitlement under the IPO18 .
The spin-out of Lithium Energy was undertaken to create a distinct battery minerals company with a clear focus on the exploration and potential development of its Lithium and Graphite assets. This was to allow Strike to focus on its iron ore assets, to bring the Paulsens East Iron Ore Project and Apurimac Iron Ore Project into production.
Lithium Energy's flagship Solaroz Brine Lithium Project (LEL:90%) (Solaroz) comprises 12,000 hectares of highly prospective lithium mineral tenements located strategically within the Salar de Olaroz Basin in South America's "Lithium Triangle" in north-west Argentina. Solaroz is directly adjacent to or principally surrounded by mineral tenements being developed into production by Orocobre Limited (ASX/TSX:ORE) and Lithium Americas Corporation (TSX/NYSE:LAC). The location of Solaroz is considered to be highly strategic and prospective, particularly in light of robust demand for lithium and recent mergers and acquisitions in the sector, including the proposed multi-billion dollar merger of Lithium Energy's neighbour, Orocobre Limited, with Galaxy Resources Limited (ASX:GXY) announced on 19 April 2021.19
15 Refer LEL's ASX Announcement dated 17 May 2021: ASX Notice – Admission to Official List
16 Refer LEL ASX Announcement dated 19 May 2021: Lithium Energy Limited Commences Trading on ASX
17 Refer LEL ASX Announcement released on 17 May 2021: Prospectus
18 Refer Strike's ASX Announcements dated 23 March 2021: Spin-Out of Lithium and Graphite Assets - Lithium Energy Limited IPO and 7 April 2021: Lithium Energy Limited IPO Opens
19 Refer Orocobre's and Galaxy's joint ASX Announcement dated 19 April 2021: Orocobre and Galaxy agree to a proposed A\$4B merger of equals, establishing a new force in the global lithium sector
In addition to its lithium assets, Lithium Energy owns the Burke Graphite Project (LEL:100%) (Burke) located in Queensland which contains a high grade graphite deposit and presents the opportunity for the Company to participate in the anticipated growth in demand for graphite and graphite related products (including graphene, a key additive for improving performance of lithium-ion batteries).
Strike Managing Director, William Johnson, is the Executive Chairman of Lithium Energy and Strike Executive Director, Farooq Khan, is an Executive Director of Lithium Energy.
Strike is the largest shareholder of Lithium Energy with 34,410,000 shares (43%) (subject to escrow for 24 months – to 19 May 2023).
For further information about Lithium Energy, refer to its June 2021 Quarterly Report released on ASX on 30 July 2021.
Completion of $5m Share Capital Raising
In June 2021, the Company raised approximately $5 million (gross) through a placement of 22,865,732 shares at $0.22 per share.20 The fund raising was to ramp-up iron ore production activities at Apurimac in Peru and to advance the development of the Paulsens East Iron Ore Project (including the securing of long lead time items).
The issue was completed within the Company's placement capacity (approved at the General Meeting held on 17 March 2021) to sophisticated or professional investors with Canaccord Genuity acting as Lead Manager to the placement.21
During the quarter, the Company issued the following unlisted options:
| Class of Unlisted Options | Exercise | Expiry | Number of |
|---|---|---|---|
| Price | Date | options | |
| 22Broker's options ($0.33, 3 June 2024) | $0.33 | 3 June 2024 | 1,000,000 |
Summary of Expenditure Incurred
A summary of expenditure incurred by the Consolidated Entity during the quarter, in relation to cash flows from operating and investing activities reported in the Appendix 5B Cash Flow Report is as follows:
| Consolidated Entity Cash Outflows | |||
|---|---|---|---|
| For Current Quarter ending 30 June 2021 | Operating | Investing | Total$'000 |
| Exploration and evaluation expenditure | - | 1,025 | 1,025 |
| Production | 1,127 | 1,127 | |
| Personnel expenses | 367 | - | 367 |
| Occupancy expenses | 12 | - | 12 |
| Corporate expenses | 34 | - | 34 |
| Administration expenses | 88 | - | 88 |
| Total Expenditure | 1,628 | 1,025 | 2,653 |
Payments to Related Parties
During the quarter, Strike paid a total of $213K in respect of Directors' remuneration, comprising salaries, fees, PAYG remittances to the ATO and statutory employer superannuation contributions. This is disclosed in Item 6 of the accompanying Appendix 5B Cash Flow Report.
20 Refer Strike's ASX Announcements dated 28 May 2021: Completion of \$5 Million Capital Raising and 4 June 2021: Appendix 2A – Application for Quotation of 22,865,732 Shares
21 Refer Strike's ASX Announcement dated 28 May 2021: Proposed Issue of Securities – SRK
22 Refer Strike's ASX Announcement dated 4 June 2021: Appendix 3G – Notification of Issue of 1M Broker Options
LIST OF MINERAL CONCESSIONS
The following mineral concessions were held as at the end of the quarter and currently:
Apurimac Iron Ore Project (Peru) (Strike – 100%)
| Area | |||||
|---|---|---|---|---|---|
| Concession Name | (Ha) | Province | Code | Title | File No |
| Opaban I | 999 | Andahuaylas | 5006349X01 | No 8625-94/RPM Dec 16, 1994 | 20001465 |
| Opaban III | 990 | Andahuaylas | 5006351X01 | No 8623-94/RPM Dec 16, 1994 | 20001464 |
| Cristoforo 22 | 379 | Andahuaylas | 010165602 | RP2849-2007-INGEMMET/PCD/PM Dec 13, 2007 | 11067786 |
| Ferrum 31 | 327 | Andahuaylas | 010552807 | RP 1266-2008-INGEMMET/PCD/PM May 12, 2008 | 11076509 |
| Wanka 01 | 100 | Andahuaylas | 010208110 | RP 3445-2010-INGEMMET/PCD/PM Oct 18,2010 | 11102187 |
Paulsens East Project (Western Australia) (Strike – 100%)
| Tenement No. | Grant Date | Expiry Date | Area (Ha) | Area (km²) |
|---|---|---|---|---|
| Mining Lease M 47/1583 | 4/9/2020 | 3/9/2041 | 381.87 | ~3.82 |
| Misc. Licence L 47/927 | 12/11/2020 | 11/11/2041 | 78.74 | ~0.79 |
| Misc. Licence L 47/938 | 10/12/2020 | 9/12/2041 | 95.97 | ~0.96 |
| Misc. Licence L 08/195 | 7/1/2021 | 6/1/2042 | 22.44 | ~0.22 |
During the quarter, Strike spun-out its interests in the Solaroz Lithium Project (Argentina) and Burke Graphite Project (Queensland) via the IPO and ASX admission of Lithium Energy Limited (AS:LEL).
JORC MINERAL RESOURCES
Paulsens East Iron Ore Project (Australia) (Strike – 100%)
The Paulsens East Iron Ore Project has a JORC Code (2012 Edition) compliant Indicated Mineral Resource:
| Mineral Resources | Million | |||||||
|---|---|---|---|---|---|---|---|---|
| Category | Fe% Cut-Off Grade | Tonnes | Fe% | SIO2% | AL2O3% | P% | S% | LOI% |
| Indicated | >58 | 9.6 | 61.1 | 6.0 | 3.6 | 0.08 | 0.01 | 2.1 |
Refer Strike's ASX Announcement dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project.
Part of the JORC Indicated Mineral Resource has been converted to a maiden JORC Probable Ore Reserve
| Ore ReservesCategory | Fe% Cut-Off Grade | MillionTonnes | Fe% | SIO2% | AL2O3% | P% |
|---|---|---|---|---|---|---|
| Probable | >55 | 6.2 | 59.9 | 7.43 | 3.77 | 0.086 |
Refer Strike's ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns.
Apurimac Iron Ore Project (Peru) (Strike – 100%)
The Apurimac Project has a JORC Code (2012 Edition) compliant Mineral Resource of 269.4 Mt, consisting of:
• a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and
• a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.
| Category | Concession | Density t/m3 | Mt | Fe% | SiO2% | Al2O3% | P% | S% |
|---|---|---|---|---|---|---|---|---|
| Indicated | Opaban 1 | 4 | 133.71 | 57.57 | 9.46 | 2.54 | 0.04 | 0.12 |
| Indicated | Opaban 3 | 4 | 8.53 | 62.08 | 4.58 | 1.37 | 0.07 | 0.25 |
| Inferred | Opaban 1 | 4 | 127.19 | 56.7 | 9.66 | 2.7 | 0.04 | 0.2 |
| Total Indicated and Inferred | 269.4 | 57.3 | 9.4 | 2.56 | 0.04 | 0.16 |
Refer Strike's ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.
JORC CODE COMPETENT PERSON'S STATEMENTS
JORC Code (2012) Competent Person Statement - Paulsens East Mineral Resources
The information in this document that relates to Mineral Resources and related Exploration Results/Exploration Targets (as the case may be, as applicable) in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcements made by Strike Resources Limited dated:
- 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns
- 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project.
The information in the original announcements that relates to these Mineral Resources and related Exploration Results (as applicable) is based on, and fairly represents, information and supporting documentation prepared by Mr Philip Jones (BAppSc (Geol), MAIG, MAusIMM), who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Mr Jones is an independent contractor to Strike Resources Limited. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements (referred to above).
The information in this document that relates to Ore Reserves in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcement made by Strike Resources Limited on:
• 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns
The information in the original announcement that relates to these Ore Reserves is based on and fairly represents information and supporting documentation compiled by Mr Harry Warries (MSc – Mine Engineering, FAusIMM), who is a Fellow of AusIMM. Mr Warries is the Principal of Mining Focus Consultants Pty Ltd, a Consultant to Strike Resources Limited. Mr Warries has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement (referred to above).
The information in this document that relates to metallurgical sampling, metallurgical testing and metallurgical results undertaken during 2019 in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcements made by Strike Resources Limited on:
• 10 October 2019: Outstanding Metallurgical Testwork Results at Paulsens East Iron Ore Deposit Indicate 79% Lump Yield with Low Impurities.
The information in the original announcements that relates to these metallurgical test work matters is based on and fairly represents information and supporting documentation compiled by Mr Philip Jones (BAppSc (Geol), MAIG, MAusIMM), who is a Member of the AusIMM and AIG. Mr Jones is an independent contractor to Strike Resources Limited. The information that relates to Processing and Metallurgy is based on the work done by ALS Metallurgy Iron Ore Technical Centre (ALS IOTC) on samples collected under the direction of Mr Jones and fairly represents the information compiled by him from the ALS IOTC testwork reports. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement (referred to above).
The information in this document that relates to metallurgical sampling, metallurgical testing and metallurgical results undertaken during 2020 in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcement made by Strike Resources Limited on:
• 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns
The information in the original announcement that relates to these metallurgical test work matters is based on and fairly represents information and supporting documentation compiled by Dr Michael J Wort (FAusIMM CP(Met)), who is a Fellow of AusIMM and a Chartered Professional Engineer. Dr Wort is an independent contractor to Strike Resources Limited. The information that relates to Processing and Metallurgy is based on the work done by ALS IOTC on samples collected under the direction of Dr Wort and fairly represents the information compiled by him from the ALS IOTC testwork reports. Dr Wort has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement (referred to above).
The information in this document that relates to Other Exploration Results and Exploration Targets (as applicable) in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcements made by Strike Resources Limited on:
- 14 October 2020: Discovery of High-Grade Iron Rich Detritals at Surface at Paulsens East
- 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project
- 4 December 2019: High Grade Results Located 1.6km from 9.6Mt Resource at Paulsens East
The information in the original announcements that relate to these Other Exploration Results and Exploration Targets (as applicable) is based on, and fairly represents, information and supporting documentation prepared by Mr Hem Shanker Madan (Honours and Masters Science degrees in Applied Science), who is a Member of AusIMM. Mr Madan is an independent contractor to Strike Resources Limited and was formerly the Managing Director (September 2005 to March 2010) and Chairman (March 2010 to February 2011) of Strike Resources Limited. Mr Madan has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements (referred to above).
JORC Code (2012) Competent Person Statement - Apurimac Project Mineral Resources
The information in this document that relates to Mineral Resources in relation to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX market announcement made by Strike Resources Limited on:
• 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.
The information in the original announcement that relates to these Mineral Resources and other Exploration Results (as applicable) is based on, and fairly represents, information and supporting documentation prepared by Mr Ken Hellsten, B.Sc. (Geology), who is a Fellow of AusIMM. Mr Hellsten was a principal consultant to Strike Resources Limited and was also formerly the Managing Director of Strike Resources Limited (between 24 March 2010 and 19 January 2013). Mr Hellsten has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement (referred to above). The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement (referred to above).
FORWARD LOOKING STATEMENTS
This document contains "forward-looking statements" and "forward-looking information", including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of Strike, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward-looking information is to provide the audience with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strike and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns.
Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. Strike believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Strike does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.
Rule 5.5
Appendix 5B Mining Exploration Entity or Oil and Gas Exploration Entity Quarterly Cash Flow Report
| Name of entity | |||
|---|---|---|---|
| STRIKE RESOURCES LIMITED (ASX:SRK) and its controlled entities | |||
| ABN | 94 088 488 724 | Quarter Ended (current quarter)30 June 2021 | |
| Consolidated statement of cash flows | CurrentQuarterJun-2021$A' 000 | Year toDate12 months$A' 000 | |
| 1. | Cash flows from operating activities | ||
| 1.1 | Receipts from customers | - | - |
| 1.2 | Payments for(a) exploration & evaluation(b) development(c) production(d) staff costs(e) administration and corporate costs | --(1,127)(367)(134) | (22)-(1,596)(799)(800) |
| 1.31.4 | Dividends received (see note 3)Interest received | 12 | 24 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.61.71.8 | Income taxes paidGovernment grants and tax incentivesOther- Recovery of office costs under shared office arrangements | --- | -5049 |
| 1.9 | Net cash from / (used in) operating activities | (1,625) | (3,112) |
| 2. | Cash flows from investing activities | ||
| 2.1 | Payments to acquire or for:(a)entities(b)tenements(c)property, plant and equipment(d)exploration & evaluation(e)investments(f)other non-current assets | --(406)(1,025)-- | --(406)(3,209)-- |
Strike Resources Limited (A.B.N. 94 088 488 724) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9700 Email: [email protected] Page 19
| Consolidated statement of cash flows | CurrentQuarterJun-2021$A' 000 | Year toDate12 months$A' 000 | |
|---|---|---|---|
| 2.2 | Proceeds from the disposal of:(a)entities(b)tenements(c)property, plant and equipment(d)investments | ---- | ---- |
| 2.32.42.5 | (e)other non-current assetsCash flows from loans to other entitiesDividends received (see note 3)Other - Adjustment on spin-out of Lithium Energy Limited (ASX:LEL) | -(9)-(25) | -(9)-(25) |
| 2.6 | Net cash from / (used in) investing activities | (1,465) | (3,649) |
| 3. | Cash flows from financing activities | ||
| 3.1 | Proceeds from issues of equity securities (excluding convertible debtsecurities) | 5,030 | 9,030 |
| 3.23.3 | Proceeds from issue of convertible debt securitiesProceeds from exercise of options | -- | -- |
| 3.4 | Transaction costs related to issues of equity securities or convertibledebt securities | (306) | (538) |
| 3.5 | Proceeds from borrowings | - | - |
| 3.6 | Repayment of borrowings | - | - |
| 3.73.8 | Transaction costs related to loans and borrowingsDividends paid | -- | -- |
| 3.9 | Other - Prepayment under Offtake and Financing Agreement (Peru) | 1,428 | 1,428 |
| 3.10 | Net cash from / (used in) financing activities | 6,152 | 9,920 |
| 4. | Net increase / (decrease) in cash and cash equivalents forthe period | ||
| 4.1 | Cash and cash equivalents at beginning of period | 3,348 | 3,243 |
| 4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (1,625) | (3,112) |
| 4.34.4 | Net cash from / (used in) investing activities (item 2.6 above)Net cash from / (used in) financing activities (item 3.10 above) | (1,465)6,152 | (3,649)9,920 |
| 4.5 | Effect of movement in exchange rates on cash held | 26 | 34 |
| 4.6 | Cash and cash equivalents at end of period | 6,436 | 6,436 |
| 5. | Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement ofcash flows) to the related items in the accounts | CurrentQuarter$A' 000 | PreviousQuarter$A' 000 |
|---|---|---|---|
| 5.1 | Bank balances | 5,291 | 798 |
| 5.2 | Call deposits | 1,145 | 2,550 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (shouldequal item 4.6 above) | 6,436 | 3,348 |
| 6. | Payments to related parties of the entity and their associates | CurrentQuarter$A' 000 |
|---|---|---|
| 6.1 | Aggregateamountofpaymentstorelatedpartiesandtheirassociates included in item 1 | (213) |
| 6.2 | Aggregateamountofpaymentstorelatedpartiesandtheirassociates 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 facilitiesNote: the term "facility' includes all forms of financing arrangements available to theentity.Add notes as necessary for an understanding of the sources of finance available tothe entity. | Total facilityamount atquarter end$A' 000 | Amountdrawn atquarter end$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 -
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.
Nil
| 8. | Estimated cash available for future operating activities | |
|---|---|---|
| $A' 000 | ||
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (1,625) |
| 8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | (1,025) |
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (2,650) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 6,436 |
| 8.5 | Unused finance facilities available at quarter end (item 7.5) | - |
| 8.6 | Total available funding (item 8.4 + item 8.5) | 6,436 |
| 8.7 | Estimated quarters of funding available(item 8.6 divided by item 8.3) | 2.43 |
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?
N/A
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?
N/A
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?
N/A
Compliance statement
-
- This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
-
- This statement gives a true and fair view of the matters disclosed.
Authorised By:
William Johnson
2 August 2021
Managing Director Strike Resources Limited (A.B.N. 94 088 488 724) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9700 Email: [email protected] Page 22 See Chapter 19 of ASX Listing Rules for defined terms
Notes
- The Company and its controlled entities currently holds the following listed share investments:
| 30-Jun-21 | ||||
|---|---|---|---|---|
| ASX code Company | No Shares | Last Bid Price | Market Value | |
| S32 | South32 Limited | 65,000 | $2.92 | $189,800 |
| Other listed shares | various | various | $48,261 | |
| $238,061 |
The above investments are regarded as liquid assets to supplement the Company's cash reserves.
| 30-Jun-21 | |||
|---|---|---|---|
| ASX code Company | No SharesLast Bid Price | Market Value | |
| LEL | Lihtium Energy Limited | 34,410,000$0.37 | $12,731,700 |
The above share investment is under escrow until 19 May 2023.
-
- 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.
-
- 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.
-
- 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.
-
- 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"
-
- 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.
AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:
William Johnson Victor Ho T | (08) 9214 9700 T | (08) 9214 9700 E | [email protected] E | [email protected]
Managing Director Executive Director & Company Sectretary