REG - Sovereign Metals Ltd - June 2023 Quarterly Report
28/07/2023 07:00
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RNS Number : 4688H Sovereign Metals Limited 28 July 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 28 JULY 2023
JUNE 2023 QUARTERLY REPORT
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is
pleased to provide its quarterly report for the period ended 30 June 2023.
HIGHLIGHTS
Rio Tinto invests $40.4m to become a 15% Strategic Investor
· Subsequent to the end of the quarter, Rio Tinto made an
investment of A$40.4 million in Sovereign resulting in an initial 15%
shareholding plus options to increase their position to potentially 19.99%
within 12 months
· Investment proceeds will be used to advance the Kasiya
Rutile-Graphite Project (Kasiya) in Malawi
· Rio Tinto's investment represents a significant step towards
unlocking a major new supply of low-CO(2)-footprint natural rutile and flake
graphite
· Under the Investment Agreement, Rio Tinto will provide
assistance and advice on technical and marketing aspects of Kasiya including
with respect to Sovereign's graphite co-product, with a primary focus on
spherical purified graphite for the lithium-ion battery anode market
Government of Malawi publicly applauds Rio Tinto's Investment
· The Government applauded the timely investment by Rio Tinto
and marked it as a milestone towards realising the country's aspirations of
growing the mining sector as a priority industry
· The Government's public statement confirms its commitment to
ensuring the growth of the mining sector through deliberate initiatives aiming
at establishing a conducive investment environment in the sector
Kasiya Rutile-Graphite Project PFS targeting completion this Quarter
· Sovereign is in the advanced stages of the Pre-Feasibility
Study (PFS) for Kasiya, a potential industry-leading major source of critical
raw materials from Malawi
· Kasiya aims to be one of the world's largest and lowest cost
producers of natural rutile and natural graphite with a carbon-footprint
substantially lower than other current and planned producers
Downstream Testwork on Kasiya's Graphite shows Excellent Suitability for us in
Lithium-Ion Batteries
· Downstream testwork on Kasiya's graphite co-product
demonstrated it to have superior qualities showing excellent suitability for
use in lithium-ion batteries. Key outcomes include:
o Near perfect crystallinity - an indicator of battery anode performance
o Above benchmark >99.95% carbon purity achieved
o No critical impurities or deleterious elements commonly found in other
natural graphite sources
Bulk Sample Operations Commenced
· Bulk sample program commenced to produce larger volumes of
rutile and graphite from Kasiya. Samples to be used for downstream testwork
and product qualification for the lithium-ion battery sector
ENQUIRIES
Dylan Browne
Company Secretary
+61(8) 9322 6322
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Harry Davies-Ball
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Optiva Securities +44 20 3137 1902
Daniel Ingram
Mariela Jaho
Christian Dennis
Tavistock PR +44 20 7920 3150
RIO TINTO INVESTS $40.4M TO BECOME A 15% STRATEGIC INVESTOR
Subsequent to the end of the quarter, Sovereign completed a A$40.4 million
strategic investment by Rio Tinto Mining and Exploration Limited (Rio Tinto)
to advance Sovereign's world-class Kasiya Rutile-Graphite Project in Malawi.
Rio Tinto subscribed for 83,095,592 new fully paid ordinary shares (Shares) in
Sovereign at a price of A$0.486 per Share for aggregate proceeds of A$40.4
million. Rio Tinto's subscription price reflected a 10% premium to the 45-day
volume weighted average price on the ASX as at close 14 July 2023 and resulted
in Rio Tinto holding approximately 15% of the ordinary shares of the Company.
The subscription also involved Rio Tinto being granted options to acquire
34,549,598 further Shares in Sovereign within 12 months of the initial
subscription which could result in Rio Tinto's shareholding in the Company
potentially increasing up to 19.99% (based on the number of shares in issue in
the Company as at the date of this announcement).
The Company will use the proceeds from Rio Tinto's strategic investment to
fund the advancement of Kasiya, including progressing a Definitive Feasibility
Study (DFS) focused on the development of a world-class, low-CO(2)-footprint
mine capable of supplying to the titanium pigment, titanium metal and
lithium-ion battery industries.
GOVERNMENT OF MALAWI APPLAUDS RIO TINTO'S INVESTMENT
In a Press Release issued on 20 July 2023, the Government of Malawi has
publicly applauded the timely investment by Rio Tinto and marked it as a
milestone towards realising the country's aspirations of growing the mining
industry as promoted in the Malawi Vision 2063, which isolates mining as a
priority industry.
The Government's statement confirms its commitment to ensuring the growth of
the mining sector through deliberate initiatives aiming at establishing a
conducive investment environment in the sector.
KASIYA - PRE-FEASIBILITY STUDY
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 a low-CO(2) and sustainable operation to supply highly sought-after
natural rutile and graphite to global markets.
The ESS confirmed Kasiya as potentially one of the world's largest and lowest
cost producers of natural rutile and natural graphite with a CO(2)-footprint
substantially lower than other existing and planned operations.
The Company is in the final stages of the PFS for Kasiya, with significant
advancements made throughout the quarter. The Company expects to announce the
outcomes of the PFS during the September quarter.
Figure 1: Drone photo looking south over the Kasiya Project
GRAPHITE DOWNSTREAM TESTWORK
During the quarter, the Company completed initial downstream testwork at an
independent German industrial mineral specialist. The testwork demonstrated
superior qualities and excellent suitability as feedstock for use in
lithium-ion batteries.
Crystallinity
Crystallinity is an indicator of electrical conductivity which affects battery
performance. This result is critical to the usability in the lithium-ion
battery sector as the higher the crystallinity i.e. the more "perfect" the
flakes/crystals, the better the electrical conductivity and battery
performance.
The testwork shows that Kasiya graphite is classed as near perfect, fully
ordered graphite, confirming it should possess the best electrical
conductivity attributes.
The coarse and highly crystalline graphite and rutile at Kasiya is the result
of very high grade metamorphic conditions during the formation of the original
host rocks (Figure 2).
Figure 2. Metamorphic stability fields for graphite, rutile and kyanite in
metasedimentary rocks and the defined metamorphic stability field for Kasiya
with the key indicator minerals graphite, rutile and kyanite.
Purity
Purity denotes the product's total carbon content and the amount of residual
key impurities including sulphur and iron which are important in anodes.
Purification is achieved via either leaching or heat treatment.
Testwork achieved >99.95% purity which is above the benchmark required for
graphite in lithium-ion batteries. The results also demonstrated very low
sulphur content in this material due to the graphite being hosted in soft
saprolite - a key differential from graphite purified from hard-rock deposits.
BULK SAMPLE OPERATIONS COMMENCED
The Company has commenced a graphite bulk sample program for Kasiya to
facilitate qualification, downstream testwork and product development.
Sovereign has been progressively upgrading its in-country laboratory
facilities to enable continuous processing of larger bulk samples for further
metallurgical test work and product qualification.
Material from the planned mining pits has been sourced from the remaining
samples from the 2022 Kasiya resource drill program. The samples were blended
to create a bulk sample which was prepared for processing at the Company's
facility in Malawi where it was sized and deslimed - processes replicating the
planned operation.
Post removal of the coarse and fine fractions, the remaining clean sand
fraction (45µm to 2mm) containing the graphite and rutile is processed over a
wet shaking table to isolate two gravity concentrates. A graphite
pre-concentrate (light mineral concentrate) with a target grade of 3-5%
graphite (up from ~1.5% in the raw ore) and a heavy mineral concentrate (HMC)
containing the rutile.
The graphite pre-concentrate is planned to be sent to international
laboratories for processing into a final graphite product via flotation. This
initial representative graphite product will provide samples for:
· Downstream testwork focussed on Spherical Purified Graphite
(SPG) anode material via purification, spheronisation, coating and battery
cell cycling tests.
· Assessment and qualification for traditional industrial
graphite markets, including the refractory, foundry, and expandable graphite
segments.
· Future production of CSPG to be provided to anode / battery
manufacturers for assessment and qualification.
Figures 3 & 4: LHS: Four tonne graphite pre-concentrate sample produced at
the Company's Lilongwe laboratory
RHS: Close-up of the pre-concentrate showing the coarse, clean graphite flakes
The HMC will be processed via a dry mineral separation circuit including
electrostatic and magnetic separation at AML laboratories in Perth to produce
a representative natural rutile product for larger scale product assessment
and end-user applicability testing, especially in the welding sector.
Figures 5 & 6: LHS: Inspection and logging of oversize material & RHS:
Rutile-rich HMC prior to despatch for dry separation
PRODUCT MARKET STRATEGY
Sovereign's product marketing strategy is to align with high-quality partners
during the technical study and development phases to completely qualify the
products, including the lithium-ion battery anode market which has now become
the largest end-market for natural flake graphite. As both are industrial
minerals, specifications and product qualification processes are critical to
marketability and offtake arrangements.
Demand for high quality flake graphite and natural rutile is growing due to
global decarbonisation requirements and current and future predicted supply
deficits. Demand for high quality flake graphite continues to grow due to
global decarbonisation requirements. Per Benchmark Mineral Intelligence, the
demand for anodes grew by 46% in 2022 compared to only 14% growth in natural
flake graphite supply.
Figure 5: Graphite demand / supply showing market deficit beginning 2025E
Source: Macquarie Research (March 2023)
To date, the Company has been able to enter into Memorandums of Understanding
(MoU) (non-binding) with three major partners in the natural rutile sector;
Mitsui, Chemours and Hascor. The Company already has over 50% of Stage 1
production under MoU (based on the Company's Expanded Scoping Study released
June 2022). Sovereign's next objective is to secure offtake MoUs for the
Kasiya flake graphite co-product.
Based on product quality assessments performed by offtakers and customers,
Kasiya's natural rutile has premium chemical parameters and is suitable for
all major end-use markets including welding, pigment feedstock and titanium
metal.
Currently, Sovereign has no sale agreements in place for graphite production.
However, the Company has built a strong understanding of the graphite market
and developed a number of well-established relationships with offtakers and
customers.
A major component to graphite sales agreements is customer qualification, and
this is a key reason for initiating the graphite bulk sample program and
scaling up in-country facilities in order to continuously produce bulk sample
over the coming months. The graphite produced from this program will be shared
with prospective end-users and is an important next step for Sovereign to
qualify the Kasiya graphite product.
Sovereign's recent initial graphite characterisation testwork conducted by an
independent German industrial minerals specialist demonstrated superior
qualities and excellent suitability for its use in lithium-ion batteries.
Further downstream testwork is planned that will use the graphite concentrate
produced.
Industry's interaction with supply chain participants indicates the
progression towards higher proportions of natural graphite used in battery
anodes will be supported by its lower cost and superior environmental
credentials. Environmental footprint of electric vehicles (EVs) will become
increasingly important market consideration as EV penetration accelerates,
noting that synthetic graphite has a carbon footprint orders of magnitude
higher than flake graphite because it is made from by-products of coke and oil
refining via energy intensive processes.
The Global Warming Potential (GWP) of producing one tonne of flake graphite
concentrate at Kasiya estimated to be 0.2 tonnes of CO(2) equivalent emissions
(CO(2)e). Kasiya has the lowest GWP compared with currently known and planned
future natural graphite projects:
· Up to 60% lower than currently reported GWP of graphite
producers and developers, including suppliers to Tesla Inc.
· 3x less polluting than proposed Tanzanian natural graphite
production from hard rock sources.
· 6x less polluting than current Chinese natural graphite
production which accounts for up to 80% of current global graphite supply.
Figure 7: Global Warming Potential per tonne of graphite product (CO(2)e/t)
(Sources: see Appendix)
(Note: All figures are cradle-to-gate except for Syrah Resources which
includes transportation to the port of Nacala; transportation of Kasiya's
graphite to the port of Nacala would add an estimated incremental 0.04CO(2)e
to its GWP)
Competent Person Statement
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from the announcement dated 5 April 2023. The
announcement is available to view on www.sovereignmetals.com.au
(http://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 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 and 8 June 2023. These
announcements are available to view on www.sovereignmetals.com.au
(http://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.
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.
Qualified Person
Information disclosed in this announcement has been reviewed by Dr Julian
Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, a Qualified Person for
the purposes of the AIM Rules for Companies.
The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain. The person
responsible for arranging for the release of this announcement on behalf of
Sovereign is Mr Dylan Browne (Company Secretary).
APPENDIX 1: RELATED PARTY PAYMENTS
During the quarter ended 30 June 2023, the Company made payments of $424,000
to related parties and their associates. These payments relate to existing
remuneration arrangements (executive salaries, director fees, superannuation
and bonuses of $334,000), business development services ($32,000) and
provision of serviced office facilities, company secretarial services and
administration services ($58,000).
APPENDIX 2: SUMMARY OF MINING TENEMENTS
As at 30 June 2023, the Company had an interest in the following tenements:
Licence Holding Entity Interest Type Licence Renewal Date Expiry Term Date(1) Licence Area (km(2)) Status
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(2) 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
EL0657 SSL 100% Exploration 3/10/2025 3/10/2029 2.3 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) Subsequent to the end of the quarter, the Company received its granted
extension for EL0492.
As noted in the Company's March 2023 Quarterly Report, the Government of
Malawi has proposed a new Mines and Minerals Bill (2023) (New Bill) which has
been passed by the Malawian Parliament and now awaits Malawian Presidential
Assent and publication in the Malawi Gazette before coming into force. If
approved, the New Bill will replace the Mines and Minerals Act (2019). The New
Bill introduces amendments to improve transparency and governance of the
mining industry in Malawi. Sovereign notes the following updates in the New
Bill which may affect the Company in the future: (i) ELs will now be granted
for an initial period of 5 years with the ability to extend by 3 years on two
occasions (total 11 years); (ii) the Malawian Government maintains a right to
free equity ownership for large-scale mining licences but the New Bill
proposes to remove the automatic free government equity ownership with the
right to be a negotiation matter; and (iii) A new Mining and Regulatory
Authority will be responsible for implementing the objectives of the New Bill.
There has been no change during or subsequent to the quarter.
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made the following payments in relation to
mining exploration activities:
Activity A$'000
Drilling (42)
Assaying and Metallurgical Test-work (52)
Studies and Reserve/Resource Estimation (990)
Tenement Rents and Rates (2)
Malawi Operations - Site Office, Personnel, Field Supplies, Equipment, (696)
Vehicles and Travel
Total as reported in Appendix 5B (1,782)
There were no mining or production activities and expenses incurred during the
quarter ended 30 June 2023.
APPENDIX 4: PEER GWP SOURCES
SOURCE 1 - GRAPHITE RESOURCE GLOBAL WARMING POTENTIAL (Figure 7)
Ref Company Project Project Status GWP (CO(2)e) LCA Boundary Source
1 Syrah Resources Balama Production 0.42 FOB Nacala ASX Announcement: Syrah approves Balama solar and battery system final
investment decision (released 6 Apr 2022)
2 Northern Graphite (Electric Fleet Scenario) Bisset Creek FS & PEA 0.45 Cradle-to-gate TSX Announcement: Northern Graphite Plans to Further Reduce Carbon Footprint
of Bissett Creek Project (released 9 Mar 2022)
3 Evolution Energy Chilalo DFS Underway 0.49 Cradle-to-gate ASX Announcement: Independent life cycle assessment demonstrates Chilalo's low
carbon footprint (released 6 Oct 2022)
4 Other Tanzania Production n/a n/a 0.60 Cradle-to-gate Provided by LCA Manager, Minviro Ltd
5 China Production n/a n/a 1.20 Cradle-to-gate Provided by LCA Manager, Minviro Ltd
6 Northern Graphite Bisset Creek FS & PEA 2.20 Cradle-to-gate TSX Announcement: Northern Graphite Plans to Further Reduce Carbon Footprint
of Bissett Creek Project (released 9 Mar 2022)
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 30 June 2023
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (1,782) (8,970)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (630) (1,822)
(e) administration and corporate costs (150) (1,247)
1.3 Dividends received (see note 3) - -
1.4 Interest received 56 281
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8.1 Other - NGX Demerger Costs (98) (208)
1.8 Other - Business Development (172) (849)
1.9 Net cash from / (used in) operating activities (2,776) (12,815)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (31) (86)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - (135)
(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 272 272
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities 241 51
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 - -
3.4 Transaction costs related to issues of equity securities or convertible debt - (601)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - (601)
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 8,091 18,894
4.2 Net cash from / (used in) operating activities (item 1.9 above) (2,776) (12,815)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 241 51
4.4 Net cash from / (used in) financing activities (item 3.10 above) - (601)
4.5 Effect of movement in exchange rates on cash held 8 35
4.6 Cash and cash equivalents at end of period 5,564 5,564
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 176 449
5.2 Call deposits 5,388 7,642
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 5,564 8,091
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 424
in item 1
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 at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to 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 activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (2,776)
8.2 (Payments for exploration & evaluation classified as investing activities) -
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (2,776)
8.4 Cash and cash equivalents at quarter end (item 4.6) 5,564
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 5,564
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.0
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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: 28 July 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
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5. If this report has been authorised for release to the
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. END MSCBUGDRRDDDGXRRecent news on Sovereign Metals
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