Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global leader
in the clean and efficient production of low-cost synthesis gas for
high value energy and chemical products, today announced that its
Australian platform company, Australian Future Energy Pty Ltd
(AFE), has successfully closed the acquisition of the 270MM metric
ton (MT) JORC compliant thermal coal resource, near Pentland,
Queensland. The acquisition was completed on August 18, 2017,
through AFE’s wholly owned subsidiary, Great Northern Energy Pty
Ltd (GNE). SES is a 40% owner of AFE.
This coal resource is AFE’s second successful
foray into securing long-term coal supply for its projects,
following the successful formation and spin-off of Batchfire
Resources, which acquired the Queensland-based Callide Mine
operations in 2016. AFE’s business plan is to secure access to
low-cost coal, coal waste and biomass resources, required to
produce the energy and chemical products for its clean energy
projects under development.
SES Gasification Technology (SGT) affords AFE
the capability to utilize low-cost, unmarketable coals generated in
the coal mining process, together with biomass, to build projects
that are both environmentally responsible and economically
advantaged over utilizing expensive natural gas.
“Together with SES we intend to be an industry
leader in delivering clean, low-cost energy. The acquisition
of the coal resource at Pentland is an important step in our
comprehensive plan to develop, finance and construct economically
attractive projects that uniquely meet the needs of Australia on
all fronts, by providing a lower cost alternative to natural gas,
creating numerous attractive job opportunities, and demonstrating
leading environmental responsibility,” said AFE Executive Director,
Edek Choros.
Mr. Choros further added, “AFE is currently in
the process of filing for the Queensland government approval of a
start-up mine for the Pentland resource. Within the next 24 months
we intend to start export coal sales and later utilize coal waste,
together with renewable biomass, for an SGT energy project in the
Townsville area.”
SES President and CEO, Ms. DeLome Fair,
commented: “AFE is pursuing its strategy of connecting important
feedstock resources to its portfolio of project developments
underway, which are intended to manufacture a variety of products,
such as fertilizers, power, and fuel gas, in a very clean and low
carbon manner, while simultaneously delivering positive financial
performance. This includes a combination of undertakings to
generate near-term earnings, alongside its large-scale clean energy
project developments now underway.
“We believe our 40% ownership in the AFE
business will benefit from this approach, and we are actively
supporting AFE with its developments, and preparing to support the
significant expected SGT technology delivery work to come, related
to AFE’s first project and the SGT license signed this past May,”
added Ms. Fair.
For more information on AFE, please see the
Australian Future Energy Overview presentation, at the SES Investor
Center at: http://ir.synthesisenergy.com/index.cfm.
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), Pty Ltd is a privately
owned Australian company founded in 2014 by its primary
shareholders, coal industry veteran Edek Choros and Synthesis
Energy Systems, Inc. AFE was established to secure an ownership
position in local resources, such as coal and biomass, for
production of agricultural chemicals and energy using SES
gasification technology that will reduce carbon dioxide emissions,
and support Australian industry and regional
growth.
As part of the formation of AFE, SES and AFE
entered into a Master Technology Agreement whereby SES will share a
portion of its earned license fee with AFE, and AFE will
exclusively use SES technology, while SES will exclusively use AFE
as its channel to the Australian market. Since formation, AFE
successfully created Batchfire Resources, Pty Ltd in Australia,
which completed the acquisition of the large 1 billion MT Callide
operating coal mine in Queensland. AFE has also recently acquired
ownership of the mine development lease for a 270 million MT JORC
resource near Pentland, QLD. Coal resources, along with local
renewable resources, will be used in combination to fuel the AFE
projects. AFE continues to actively develop its first projects that
will utilize SES’s efficient and low-cost clean syngas production
technology.
About GNE and the Pentland
Resource
GNE, a wholly owned subsidiary of AFE, was
formed to own and manage the MDL361 coal resource near Pentland,
QLD. The 270MM MT Pentland JORC 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.
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.
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
develop our power business unit 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 customers’ and/or 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 GroupInvestor
Relations:David CastanedaArsen
Mugurdumov414.351.9758IR@synthesisenergy.com
Media Relations:Susan
Roush805.624.7624PR@synthesisenergy.com
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