Synthesis Energy Systems, Inc. Announces 270 Million Ton Pentland Resource Acquisition by Australian Future Energy
April 18 2017 - 7:00AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global leader
in economic and sustainable high performance clean energy
technology, today announced that Great Northern Energy Pty Ltd, a
wholly owned subsidiary of Australian Future Energy Pty Ltd (AFE),
has acquired a 270 million ton JORC compliant coal resource lease
near Pentland, Queensland. The acquired mine development lease,
MDL361, has existing rail access to Townsville, QLD. AFE is an
Australian company owned 40% by SES which in 2016 acquired the
well-established Callide coal mine operations and founded Batchfire
Pty, Ltd (Batchfire) which now owns and operates the large Callide
Mine. AFE is building its business in Australia based exclusively
on the utilization of SES’s clean and efficient coal and renewable
resource conversion technology for manufacturing high value
products such as fertilizers, natural gas, power, and industrial
fuel gas.
“AFE once again delivers another important
component of its business plan. When developed, this
significantly sized Pentland resource acquisition of marketable
coal additionally represents a significant amount of unmarketable
coal from which AFE can manufacture low-cost urea and substitute
natural gas, among other products,” said Robert W. Rigdon, Vice
Chairman of SES and Deputy Chairman of AFE. “We believe that AFE is
smartly connecting significant resources to its portfolio of
project developments underway which are all intended to manufacture
products such as fertilizers, power, and fuel gas in a very clean
and low carbon manner while simultaneously delivering positive
financial performance. We expect that the future benefits to SES
from the AFE business will result from nearer-term financial
results expected from ongoing operations such as Batchfire and from
the potential scope of technology and equipment SES must provide
into the AFE projects. We anticipate that AFE will continue to gain
momentum and look forward to more news from AFE.”
“Australian Future Energy is an exciting
regional clean energy platform for SES. We are pleased to be
increasing our ownership and long range position in low-cost coal
resources in Australia and to be aligned with such a knowledgeable
and visionary Australian team,” added SES President and CEO DeLome
Fair.
Under the terms of the definitive agreement for
acquiring the mine development lease AFE has completed its first of
two payments and is scheduled to complete the final payment within
six months. The Pentland resource is located in the northern part
of the Galilee Basin which contains large quantities of Permian
thermal coal. The Pentland resource has been well proven through
significant bore hole evaluation work completed initially by Shell
Oil Company in the 1970s and several subsequent analyses since that
time. The coal quality is that of a JORC compliant thermal coal.
The JORC Code is the Australasian Code, overseen by the global
Committee for Mineral Reserves International Reporting Standards
(CRIRSCO), for reporting results, mineral resources and ore
reserves. It is a professional code of practice that sets minimum
standards and a mandatory system for public reporting of marketable
minerals and other natural resources.
About Synthesis Energy Systems,
Inc.
Synthesis Energy Systems (SES) is a
Houston-based technology company focused on generating clean,
high-value energy from low-cost and low-grade coal, biomass and
municipal solid waste through its proprietary technology for
conversion of these resources into a clean synthesis gas (syngas)
and methane. SES’s proprietary technology enables the production of
clean, low-cost power, industrial fuel gas, chemicals, fertilizers,
transportation fuels, and substitute natural gas, replacing
expensive natural gas-based energy. SES’s technology can also
produce high-purity hydrogen for cleaner transportation fuels. SES
enables greater fuel flexibility for both large-scale and efficient
small- to medium-scale operations close to fuel sources. Fuel
sources include low-rank, low-cost high ash, high moisture coals,
which are significantly cheaper than higher grade coals, waste
coals, biomass, and municipal solid waste feedstocks. SES: Growth
With Blue Skies. For more information, please visit:
www.synthesisenergy.com.
About Australian Future Energy Pty
Ltd
Australian Future Energy (AFE) is a privately
owned Australian company, with primary shareholders Ambre
Investments Pty Ltd and Synthesis Energy Systems, Inc. AFE develops
business and project opportunities in Australia that would utilize
SES’ technology for the purpose of manufacturing a wide array of
clean energy and chemical products from unmarketable and waste
coals generated in the coal mining process. Such utilization of
unmarketable coals can be a benefit to coal mine operators through
improving coal mine environmental performance and economics, and
these unmarketable coals provide a reliable and low cost source of
feedstocks for future AFE projects using SGT.
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those
projected. Among those risks, trends and uncertainties are the
ability of our project with Yima to produce earnings and pay
dividends; our ability to develop and expand business of the TSEC
joint venture in the joint venture territory; our ability to
successfully partner our technology business; our ability to
develop our power business unit and marketing arrangement with GE
and our other business verticals, including DRI steel, through our
marketing arrangement with Midrex Technologies, and renewables; our
ability to successfully develop the SES licensing business; the
ability of the ZZ Joint Venture to retire existing facilities and
equipment and build another SGT facility; the ability of Batchfire
and AFE management to successfully grow and develop their
Australian assets and operations, including Callide and Pentland;
the economic conditions of countries where we are operating; events
or circumstances which result in an impairment of our assets; our
ability to reduce operating costs; our ability to make
distributions and repatriate earnings from our Chinese operations;
our ability to successfully commercialize our technology at a
larger scale and higher pressures; commodity prices, including in
particular natural gas, crude oil, methanol and power, the
availability and terms of financing; our ability to obtain the
necessary approvals and permits for future projects, our ability to
raise additional capital, if any, our ability to estimate the
sufficiency of existing capital resources; the sufficiency of
internal controls and procedures; and our results of operations in
countries outside of the U.S., where we are continuing to pursue
and develop projects. Although SES believes that in making such
forward-looking statements our expectations are based upon
reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be
materially different from those projected by us. SES cannot assure
you that the assumptions upon which these statements are based will
prove to have been correct.
Contact:
MDC Group
Investor Relations:
David Castaneda
Arsen Mugurdumov
414.351.9758
IR@synthesisenergy.com
Media Relations:
Susan Roush
805.624.7624
PR@synthesisenergy.com
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