TIDMSVML
RNS Number : 3807O
Sovereign Metals Limited
31 January 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 31 JANUARY 2023
DECEMBER 2022 QUARTERLY REPORT
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM &
AIM:SVML) is pleased to provide its quarterly report for the period
ended 31 December 2022.
HIGHLIGHTS
Kasiya Rutile Project PFS continues to progress on schedule
-- Sovereign is well advanced with the Pre-Feasibility Study
(PFS) for the Kasiya Rutile Project (Kasiya), an industry-leading
major source of critical raw materials from Malawi.
-- The PFS will build on the Expanded Scoping Study (ESS) which
confirmed Kasiya as potentially one of the world's largest and
potentially lowest cost producers of natural rutile and natural
graphite with a carbon-footprint substantially lower than other
current and planned producers.
-- The PFS is on track to be completed in H1 2023 with all major
works packages well progressed.
Resource infill drilling completed
-- The Company completed a 4,660 metre, 191-hole deeper air-core
(AC) and 2,206 metre, 247-hole push tube (PT) mineral resource
infill drilling program to upgrade the Kasiya Mineral Resource
Estimate (MRE), with the update targeted for Q1 2023.
-- The drilling program confirmed consistency of high-grade
rutile and graphite mineralisation at depth.
-- Infill core PT drilling of numerous Inferred category pits
and potential pit extensions is expected to add new blocks of
Indicated material.
Offtake MoU with Chemours, one of the world's largest' s
producers of high-quality titanium dioxide pigment
-- In November 2022, a Memorandum of Understanding ( MoU )
(non-binding) was signed for supply of 20,000 tonnes of natural
rutile per annum from Kasiya to US-based Chemours, one of the
world's largest producers of high-quality titanium dioxide
pigments.
Sovereign to Demerge Standalone Graphite Projects
-- Sovereign plans to demerge its standalone Graphite Projects
(being the Nanzeka, Malingunde, Duwi and Mabuwa Projects) into a
100%-owned subsidiary, NGX Limited, then do an in-specie
distribution.
-- The Demerger seeks to unlock the value of the Graphite
Projects for Sovereign shareholders and separate its Kasiya Rutile
Project and its standalone Graphite Projects into two distinct
companies.
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 +44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM
RFC Ambrian
Bhavesh Patel / Andrew Thomson +44 20 3440 6800
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Optiva Securities +44 20 3137 1902
Daniel Ingram
Mariela Jaho
Christian Dennis
KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD
Kasiya, located in central Malawi, is the largest natural rutile
deposit and one of the largest flake graphite deposits in the
world. Sovereign is aiming to develop an environmentally and
sustainable operation to supply highly sought-after natural rutile
and graphite to global markets.
Sovereign is completing a PFS which will build on the on the
ESS, released in June 2022, with targeted completion in H1
2023.
The ESS confirmed Kasiya as potentially one of the world's
largest and lowest cost producers of natural rutile and natural
graphite with a carbon-footprint substantially lower than current
alternatives. The ESS showed outstanding results including:
-- a two-stage development (stage 2 self-funded) with full
production at 24Mtpa throughput producing 265kt rutile and 170kt
graphite per annum over a 25 year mine life
-- exceptional economics including a post-tax NPV(8) of US$1,537m and post-tax IRR of 36%
-- a large-scale operation with a low-cost profile resulting
from the deposit's near surface nature, high-grade, conventional
processing flowsheet, and excellent existing infrastructure
-- conservative assumptions applied with long-term prices used
discounted against current spot prices
PFS ACTIVITIES
The PFS for Kasiya continued during the quarter with all major
work programs progressing well. The study remains on track for a
targeted completion in H1 2023. A summary of key areas progressed
during the quarter is as follows:
Mining
Fraser Alexander have progressed the mechanical engineering and
design of the mining plan with the defined concept of hydro-mining.
The Company also completed a trade-off study examining hydro-mining
vs dozer mining options to validate the selected mining method.
Pumping and Rheology
The Company commenced a comprehensive testwork program with
Paterson and Cooke to generate mineral properties information and
pumping and rheology data to feed into their pumping and piping
design and layout work program.
Metallurgy
A bulk metallurgical program focused on the first years of
mining is well advanced with the program designed to conclude the
process design and flowsheet. Additional variability tests are
planned, with all samples extracted now in Perth for
processing.
An initial graphite co-product testwork program was also
completed earlier in the quarter with the sizing and chemical
characteristics matching the product specifications used in the
ESS.
Tailings and Rehabilitation
The Project's objective is to minimise the operation's footprint
via progressive rehabilitation, a concept common across mineral
sands operations. The Company has defined a comprehensive testwork
program with numerous work streams underway designed and supervised
by global experts from Australia and South Africa.
In addition to the tailings testwork the post-mining
rehabilitation study continues. This work program is led by
Agreenco, a South African based consulting firm with significant
expertise in rehabilitation and revegetation.
KASIYA RESOURCE INFILL DRILLING
A 4,660 metre, 191-hole AC and 2,206 metre, 247-hole PT drilling
program at the Kasiya rutile deposit has been completed. Drilling
was conducted on a nominal 200m x 200m grid spacing targeting
upgrading of mineralisation into the Indicated category which could
convert to Probable Reserves as part of the forthcoming PFS.
The AC results confirmed that rutile mineralisation is
continuous in many pit areas from surface down to the top of
saprock, normally between 20m and 30m from surface.
RUTILE OFFTAKE
In November 2022, Sovereign entered into a non-binding MOU with
The Chemours Company (Chemours) for the potential supply of 20,000
tonnes per annum of natural rutile from Kasiya.
The MOU covers the potential supply of 20,000 tonnes per annum
of natural rutile at Stage 1 nameplate capacity and an option to
take additional product (tonnage to be agreed) when Kasiya reaches
Stage 2 nameplate capacity (refer to announcement dated 16 June
2022 entitled ' Kasiya Expanded Scoping Study Results ' ). Further,
volumes may be varied up or down by mutual agreement and pricing
will reference market prices of the day (both to be included in the
definitive agreement).
The MOU is non-exclusive and non-binding and remains subject to
negotiation and execution of the definitive agreement. The MOU will
expire two years from the execution date but can be extended by
agreement by both parties should a definitive agreement not have
been reached by that time.
Chemours is a leading provider of performance chemicals that are
key inputs in end-products and processes across a variety of
industries. Chemours operates 29 manufacturing sites serving
approximately 3,200 customers in approximately 120 countries.
Its Titanium Technologies segment is one of the world's largest
producers of high-quality titanium dioxide (TiO(2) ) pigment and
aspires to be the most sustainable TiO(2) enterprise in the world.
Using its proprietary chloride technology-pioneered in 1931 and
improving ever since-Chemours provides innovative TiO(2) solutions
for coatings, plastics, and laminates.
It operates four TiO(2) pigment production facilities: two in
the United States, one in Mexico, and one in Taiwan totalling TiO2
pigment nameplate capacity of 1.25 million tonnes per year. In the
year ended 31 December 2021, Chemours' Titanium Technologies
segment reported net sales of US$3.4 Billion.
The Company is continuing product marketing with further offtake
MOUs expected to be executed in the near-term.
COMMUNITY INITIATIVES
During the quarter, Sovereign completed seven community
boreholes and installation of hand pumps for provision of fresh
water to a number of villages.
SOVEREIGN TO DEMERGE STANDALONE GRAPHITE PROJECTS
In December 2022, Sovereign announced that it intends to
undertake a demerger (Demerger) whereby Sovereign's Malawian
graphite projects, being the Nanzeka Project, Malingunde Project,
Duwi Project and Mabuwa Project (Graphite Projects), are to be
demerged through NGX Limited (NGX), a wholly owned subsidiary of
the Company. This will allow Sovereign to focus on the development
of the Kasiya while unlocking value in its Graphite Projects for
shareholders.
The Demerger allows Sovereign and the existing management team
to focus on its flagship Kasiya Rutile Project, the largest natural
rutile deposit in the world, with Sovereign retaining all graphite
co-product from Kasiya.
Sovereign proposes, subject to shareholder approval, to demerge
the Graphite Projects via a spin-out of NGX and in-specie
distribution of NGX fully paid ordinary shares (NGX Shares) to
Sovereign shareholders by issuing one (1) NGX Share for every
eleven (11) Sovereign shares (SVM Shares) held (Distribution),
allowing Sovereign shareholders to retain exposure to the value and
upside of the Graphite Projects.
Upon completion of the Demerger, NGX intends to seek admission
to the official list of the ASX. NGX will undertake a capital
raising to satisfy the ASX admission requirements.
Sovereign shareholders will have the opportunity to retain
further exposure to the value and upside of the Graphite Projects
as the NGX IPO is expected to comprise a priority offer to existing
shareholders on the basis of one (1) new NGX Share for every one
(1) NGX Share received pursuant to the Demerger to raise
approximately $8,600,000 and a general offer of $1,000,000 to
assist with satisfying ASX spread requirements. This will ensure
there is no cash outflow from Sovereign to NGX as part of the
Demerger, other than applicable Sovereign expenses to effect the
Demerger. The terms of the NGX IPO are yet to be finalised
however.
NGX will be the offeror of the NGX Shares under the IPO. A
prospectus will be issued by NGX for the IPO capital raising which
will be made available when the NGX Shares are offered. Anyone
wishing to acquire NGX Shares as part of the IPO offer will need to
complete the application form that will accompany the
prospectus.
A Notice of Meeting for the Demerger and Distribution will be
sent to shareholders with the meeting planned to take place early
in 2023.
Rationale for Demerger
-- The Demerger allows the Company to better focus its efforts
and resources on Kasiya and other primary rutile discoveries.
-- The Demerger will provide shareholders with an interest in
two companies - Sovereign and NGX. The Board believes a separate
entity with a separate management team focused on the Graphite
Projects presents a better prospect of delivering value to
Sovereign shareholders.
-- Shareholders may elect to retain exposure to either one or
both companies as dictated by their investment preferences and
objectives:
-- Shareholders will retain an interest in NGX through the
Distribution and thereby have an opportunity to benefit from the
potential development of the Graphite Projects; and
-- All Shareholders will retain their interest in the capital of
Sovereign and exposure to Kasiya.
-- The Board sees considerable potential in the Graphite
Projects that is not recognised by the market and, therefore, a
dedicated, separately funded vehicle may realise appropriate value
for shareholders.
-- Future capital raisings are expected to be more readily
achieved by each individual entity as the focus of the funding will
be on their specific projects. In addition, it is expected to
provide greater flexibility to both Sovereign and NGX to attract
strategic investors.
-- NGX will have a dedicated board and management team to focus
on the development of the Graphite Projects.
-- After a full and proper assessment of all available
information, the Directors believe that the Demerger is in the best
interests of Sovereign shareholders.
Indicative Timetable of the Demerger
An indicative timetable for the Demerger is provided below.
Event Indicative Date
General Meeting Mid-March 2023
====================================== ================
Effective date of Distribution Mid-March 2023
====================================== ================
Record Date Late March 2023
====================================== ================
Date for Distribution to Shareholders Late March 2023
====================================== ================
Note : The dates shown in the table above are indicative only
and may vary subject to the Corporations Act, the ASX Listing
Rules, and other applicable laws.
For further information and additional detail please refer to
ASX Announcement dated 7 December 2022 entitled
' Sovereign to Demerge Standalone Graphite Projects '
RELATED PARTY PAYMENTS
During the quarter ended 31 December 2022, the Company made
payments of ($242,000) to related parties and their associates.
These payments relate to existing remuneration arrangements
(executive salaries, director fees, superannuation and bonuses of
$125,000), business development services ($30,000) and provision of
serviced office facilities, company secretarial services and
administration services ($87,000).
MINING EXPLORATION EXPITURES
During the quarter, the Company made the following payments in
relation to mining exploration activities:
Activity A$'000
-------------------------------------------------------------------------------------------- -------
Drilling (548)
Assaying and Metallurgical Test-work (633)
Studies and Reserve/Resource Estimation (890)
Malawi Operations - Site Office, Personnel, Field Supplies, Equipment, Vehicles and Travel (754)
Total as reported in Appendix 5B (2,825)
-------------------------------------------------------------------------------------------- -------
There were no mining or production activities and expenses
incurred during the quarter ended 31 December 2022.
Competent Person Statement
The information in this announcement that relates to the Mineral
Resource Estimate is extracted from the announcement dated 5 April
2022. The announcement is available to view on
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 announcement; b) all material
assumptions included in the 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.
Table 1: Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off
Mineral Resource Category Material Tonnes (millions) Rutile Rutile Tonnes (millions) Total Contained Graphite (TGC) TGC Tonnes (millions) RutEq.
Grade*
(%) (%) (%)
Indicated 662 1.05% 6.9 1.43% 9.5 1.76%
============================ ============================ ======== ========================== ================================ ======================= ========
Inferred 1,113 0.99% 11.0 1.26% 14.0 1.61%
============================ ============================ ======== ========================== ================================ ======================= ========
Total 1,775 1.01% 18.0 1.32% 23.4 1.67%
============================ ============================ ======== ========================== ================================ ======================= ========
* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price
(US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price
(US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken
from this Study ** Any minor summation inconsistencies are due to
rounding
The information in this announcement that relates to Production
Targets, Processing, Infrastructure and Capital and Operating
Costs, is extracted from the announcement dated 16 June 2022
entitled 'Kasiya Expanded Scoping Study Results'. Sovereign
confirms that: a) it is not aware of any new information or data
that materially affects the information included in the
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
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
Metallurgy is extracted from the announcement dated 7 December
2021. The announcement is available to view on
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 announcement; b) all material
assumptions included in the announcement continue to apply and have
not materially changed; and c) the form and context in which the
relevant Competent Persons' findings are presented in this report
have not been materially changed from the announcement.
The information in this announcement that relates to the
Exploration Results is extracted from the announcement dated 8
September 2022, 26 October 2022 and 30 January 2023. The
announcements are available to view on 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
announcements; b) all material assumptions included in the
announcements 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 announcements.
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.
Authorisation Statement
To view this announcement in full, please refer to
http://www.investi.com.au/api/announcements/svm/969e699e-3cd.pdf
APPIX 1: SUMMARY OF MINING TENEMENTS
As at 31 December 2022, the Company had an interest in the
following tenements:
Licence Holding Interest Type Licence Expiry Licence Status
Entity Renewal Term Date(1) Area (km(2)
Date )
Sovereign:
============ ========= ========= ============ =========== ============== ============= ========
EL0609 MML 100% Exploration 25/09/2024 25/09/2028 440.5 Granted
============ ========= ========= ============ =========== ============== ============= ========
EL0582 SSL 100% Exploration 15/09/2023 15/09/2027 285.0 Granted
============ ========= ========= ============ =========== ============== ============= ========
EL0492 SSL 100% Exploration 29/01/2023 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 15/09/2023 15/09/2027 124.0 Granted
============ ========= ========= ============ =========== ============== ============= ========
NGX:
============ ========= ========= ============ =========== ============== ============= ========
EL0372 SSL(3) 100% Exploration N/A 13/03/2022(2) 729.2 Granted
============ ========= ========= ============ =========== ============== ============= ========
RL0012 NGX 100% Retention N/A 26/07/2026 6.0 Granted
============ ========= ========= ============ =========== ============== ============= ========
RL0032 SSL(3) 100% Retention N/A 4/10/2027 24.64 Granted
============ ========= ========= ============ =========== ============== ============= ========
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited
& NGX Exploration 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) Prior to expiry of EL0372, the Company applied for the grant
of a mining licence (ML) over EL0372. Under the Mines Act, an EL
term automatically extends until the ML application has been
processed and/or granted. The ML has been granted subject to the
approval of an ESIA for Malingunde.
(3) Proposed to be transferred to NGX as part of the
Demerger.
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 December 2022
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows (6 months)
$A'000 $A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (2,825) (5,085)
(b) development - -
(c) production - -
(d) staff costs (344) (874)
(e) administration and corporate
costs (475) (851)
1.3 Dividends received (see note - -
3)
1.4 Interest received 80 151
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
1.8 Other - Business Development (326) (497)
----------------- --------------
Net cash from / (used in)
1.9 operating activities (3,890) (7,156)
----- ----------------------------------- ----------------- --------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment (23) (23)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
2.5 Other (provide details if - -
material)
----------------- --------------
Net cash from / (used in)
2.6 investing activities (23) (23)
----- ----------------------------------- ----------------- --------------
3. Cash flows from financing
activities
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
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (568) (601)
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)
----------------- --------------
Net cash from / (used in)
3.10 financing activities (568) (601)
----- ----------------------------------- ----------------- --------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 15,587 18,894
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (3,890) (7,156)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (23) (23)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) (568) (601)
Effect of movement in exchange
4.5 rates on cash held 9 1
----------------- --------------
Cash and cash equivalents
4.6 at end of period 11,115 11,115
----- ----------------------------------- ----------------- --------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 846 1,062
5.2 Call deposits 10,269 14,525
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 11,115 15,587
---- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 242
-----------------
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 Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity.
Add notes as necessary for
an understanding of the sources
of finance available to the
entity.
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 $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (3,890)
8.2 (Payments for exploration & evaluation classified -
as investing activities) (item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item (3,890)
8.2)
8.4 Cash and cash equivalents at quarter end 11,115
(item 4.6)
8.5 Unused finance facilities available at quarter -
end (item 7.5)
--------
8.6 Total available funding (item 8.4 + item 11,115
8.5)
--------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 2.9
--------
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: 31 January 2023
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBBMFTMTMJMIJ
(END) Dow Jones Newswires
January 31, 2023 02:00 ET (07:00 GMT)
Sovereign Metals (LSE:SVML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sovereign Metals (LSE:SVML)
Historical Stock Chart
From Jul 2023 to Jul 2024