Wrap Text
Quarterly Activities Report for 30 June 2024
Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
31 July 2024
ASX:SPD, JSE:SDL
Quarterly Activities Report for 30 June 2024
JUNE QUARTER HIGHLIGHTS
ACN: 646 399 891
Operational:
Corporate Directory • Successful completion of the PFS (Pre-Feasibility Study) drilling campaign,
comprising a total of 30,746m from 82 drill holes including 50 reef deflections
Chairman • Drilling results will be incorporated into a forthcoming updated Mineral
Roger Baxter Resource Estimate at the Bengwenyama PGM project, which is targeting an
Indicated Mineral Resource of sufficient size and quality to facilitate the
Managing Director commencement of mine planning for the PFS
Johan Odendaal
• All samples for the PFS drill campaign submitted to ALS laboratories in
Non-Executive Directors Johannesburg have been received back from the laboratory, allowing for the
Mike Stirzaker next MRE to commence
Rob Thomson
Daan van Heerden • Along with the completion of the drill programme, additional samples have
Lindi Nkosi-Thomas been collected for metallurgical test work to confirm the recovery of by-
product chromite from the UG2 Reef.
Company Secretary • Footwall mineralisation of the Merensky Reef (MR) was also observed during
Andrew J. Cooke
the completion of drilling and is now being further investigated.
Top 5 Shareholders • PFS works programme continued to advance in the quarter, with ongoing
review by SRK Consulting to ensure the highest standards of due diligence and
Nicholas Daniel Resources Pty ltd quality assurance
Nurinox Investments Pty Ltd
Robert Keith • The PFS follows the completion of an extensive Scoping Study in the first
Legacy Platinum Corporation quarter of 2024, which indicated the development of a high-grade, low-capital
Regal Partners intensity UG2 reef underground mining operation at the Bengwenyama
project with a Post-tax NPV of ~US$700 million
Company Overview • An updated Mineral Resource Estimate (MRE) will be released in the third
quarter of calendar year 2024.
Dual-listed platinum group metal
(PGM) company developing the
advanced Bengwenyama PGM Corporate:
project, particularly rich in
palladium/rhodium, located in South • Advocate Lindi Nkosi-Thomas SC appointed as a Non-Executive Director,
Africa's prolific Bushveld Complex. effective from 10 June 2024.
Contact: • As at 30 June 2024, Southern Palladium held approximately A$5.43 million
(31 March 2024: A$6.85 million) in cash. This figure excludes cash held by the
E: info@southernpalladium.com Company's 70% subsidiary, Miracle Upon Miracle Investments (Pty) Limited
W: www.southernpalladium.com at 30 June 2024 of A$0.79 million (31 March 2023: A$0.64 million).
Southern Palladium (ASX: SPD, "Southern Palladium" or the "Company") is pleased to announce its quarterly
activities summary for the three months ended 30 June 2024.
The Company's primary focus during the quarter was the ongoing advancement of its development programme
at the Bengwenyama PGM (platinum group metals) project, in which it holds a direct 70% stake. The project is
strategically positioned in the heart of the world class Bushveld Complex – the largest source of PGMs globally –
in a significant underground mining region with established expertise and infrastructure.
Operations in the June quarter included the formal completion of Southern Palladium's PFS (Pre-Feasibility Study)
drilling campaign, with final assay results to be incorporated into an updated Mineral Resource Estimate (MRE)
for the Bengwenyama project in Q3 CY2024.
The ongoing development programme during the quarter included the advancement of Southern Palladium's
Environmental Impact Assessment (EIA), with the forthcoming MRE targeting an expanded Indicated Resource of
sufficient size to commence the mine planning component of the PFS. Southern Palladium remains well-funded
to complete its PFS from existing cash reserves, with all PFS works subject to ongoing review by independent
experts SRK Consulting.
The PFS follows the release of an extensive Scoping Study for the Bengwenyama project in the March quarter,
(refer ASX Announcement 1 February 2024) which confirmed the continuation of the PFS and forecast a 36-year
mine with a NPV8% of US$700m.
Overview of June Quarter Activities
PFS drill programme
The initial drilling campaign – aimed at declaring an Indicated Mineral Resources for the PFS – was successfully
completed in Q2 2024. This will form the basis for establishing an Indicated Mineral Resource for the target reef,
the UG2, by Q3 CY2024, of sufficient size and quality to facilitate the completion of a PFS for the Bengwenyama
project. All samples sent to ALS laboratories in Johannesburg have been returned, allowing the next Mineral
Resource Estimate (MRE) to commence.
In total, 82 drillholes were completed, totalling 30,746 meters, which included 50 reef deflections. These
deflections were drilled to collect metallurgical samples, and some will be used to study the short-range variability
(SRV) of the UG2 reef for resource estimation purposes. Additionally, two deflections were used for mineralogical
studies conducted by Suntech Geomet laboratories in Johannesburg.
Figure 1 below shows the collar positions of the completed drillholes as well as the historical drillholes used to
construct the initial geological model and Mineral Resource estimate. The PFS drilling focused on the eastern
portion of farm Eerstegeluk to delineate Indicated Mineral Resources in the shallower portion (30m to 400m
below the surface, averaging ~275m depth) of the UG2 reef. Drill spacing ranged from approximately 200m to
700m, with an average spacing of around 350m.
Figure 1: Final Drillhole Locations
The drilling campaign continues to confirm the average grade and prill split of the UG2 Reef. The final weighted
average for representative UG2 intersections is a reef thickness of 67 cm with an average grade of 8.25 g/t 3PGE
+ Au (4E) and 9.88 g/t 6PGE + Au (7E). The prill split of the weighted average for 3PGE + Au intersections is Pt:Pd:Rh
of 44.5% : 45% : 9.1% : 1.4%. These results are consistent with expectations.
Drilling was also conducted in the North, Central, and Southern Horst Blocks to enhance geological understanding
west of the current core Bengwenyama resource. The Northern Horst Block drilling confirmed the presence of
both the MR and UG2. However, drilling in the Central and Southern Horst blocks indicated limited potential for
the UG2, making conversion to Mineral Resources unlikely (previously categorized as Exploration Targets). This is
expected to have minimal impact on PFS mine planning.
Conversely, MR results showed potential for these areas to convert to Mineral Resources. Remaining exploration
targets for both MR and UG2 on farm Nooitverwacht (westward) also show promising potential for conversion to
Mineral Resources.
A geological structural plan is being updated with new data, and the Mineral Resource Estimate (MRE) will follow
in Q3 2024.
Project Studies
The Scoping study completed during 1Q2024 confirmed the continuation of the PFS aimed for completion in Q4
2024.
The key study results of the Scoping Study are detailed in the table to follow. The results indicate an economically
viable project with a post-tax NPV8% of US$700 million and a post-tax IRR of 21%. The payback period has been
calculated as 7.5 years from start of construction and 4.5 years from the first plant throughput. The Project has
an all-in-sustaining-cost of US$836/6E oz. Project cashflows are assessed on a real, pre-finance basis.
The Scoping Study identified that there is a well-established downstream smelting and refining process for PGM
concentrates within South Africa. Well-established precedents exist for commercial terms that would be
applicable for UG2 and Merensky concentrates. Most smelters processing the concentrate from the Eastern and
Western Limbs are situated in Rustenburg, with almost all the concentrator product in the area being transported
by truck to Rustenburg. The Project PGM concentrates are believed to be suitable for these facilities. The recently
completed Scoping Study enabled the company to initiate discussions with potential offtake parties, which remain
ongoing alongside the PFS works programme.
Environmental, Social and Governance
Submission of Mining Right Application
On September 29, 2023, Southern Palladium officially submitted its application for a Mining Right (refer ASX
Announcement 2 October 2023). On 17 October 2023, the company received notification from the Department
of Mineral Resource and Energy (DMRE) that its application for the Mining Right has been accepted.
Comprehensive expert studies and consultations are ongoing, providing the foundation for a decision by the
DMRE anticipated early 2025.
Environmental Impact Assessment
The acceptance letter for the Mining Right Application, received on 17 October 2023 marked the commencement
of the Environmental Authorisation process comprising the Scoping and Environmental Impact Assessment (EIA)
reporting phases. The scoping phase was concluded with the receipt of the acceptance letter on 15 February 2024,
initiating the subsequent EIA phase.
This process entailed ongoing consultation with local authorities and engagement with interested and affected
parties which was completed during the June quarter. It also involved conducting specialist studies by
independent experts and the eventual compilation of the comprehensive Environmental Impact Report (EIR) by
the independent environmental consultancy, OMI Solutions (Pty) Ltd. This report delineates all biophysical and
socio-economic impacts, along with proposed mitigation measures and the Environmental Management
Programme (EMPR). The final EIR, encompassing all findings and the EMPR, was aimed for submission to the
Department of Mineral Resources and Energy (DMRE) by mid-2024.
Engaging with the Community
Southern Palladium works closely with the community, actively promoting inclusivity and project awareness.
Ethical inclusion extends to fair representation via the Royal Family, Traditional Council and other Community
representatives. Monthly feedback meetings are held with Community representatives. Quarterly meetings are
held with extended representation from the greater Royal Family, Traditional Council and community
representatives.
To further communicate the Company's activities to community members, Southern Palladium launched a
Facebook page: (https://www.facebook.com/SouthernPalladium). This platform serves as a means to share
updates, news, and relevant information with the community in a more accessible and real-time manner.
Additionally, a Newsletter is distributed within the Community and surrounding Areas. The Newspaper is well
received and is published on a Bi-annual basis. Electronic copies are available on the Southern palladium website:
https://www.southernpalladium.com/site/news-insights/media
Health And Safety
Southern Palladium is committed to upholding high standards of employee and workplace health and safety.
Exploration activities at Bengwenyama are conducted in compliance with all regulations including the South
African Mine Health and Safety Act (29 of 1996). A comprehensive safety file, emergency response plan, policies
and codes of practice are implemented, incorporating key guidelines published by the Minerals Council South
Africa (formerly called the Chamber of Mines). Legal appointments are made in terms of policies and Mine Health
and Safety regulations.
September Quarter Planned Activities
• The Environmental Impact Assessment is progressing as planned, with the submission targeted for July 2024.
• Publication of updated Mineral Resource Estimate, incorporating results from the PFS drilling campaign
completed in Q2. Data from the final drill holes will provide the basis for an Indicated Mineral Resource of
sufficient size for the target reef, the UG2, and quality to facilitate the commencement of mine planning for
the PFS
• The PFS remains on schedule to be completed in early Q4 2024, is ongoing with continuous review by SRK.
• Southern Palladium remains well funded to complete the PFS from existing cash reserves.
Corporate
Appointment of Advocate Lindi Nkosi-Thomas as Non-Executive Director
Advocate Lindi Nkosi-Thomas SC was appointed as a Non-Executive Director, effective from 10 June 2024.
A practising lawyer, Lindi is a Senior Counsel and a member of the Johannesburg Bar, having been called to the Bar
in November 1994. In 2009 she was conferred the status of silk by the President of the Republic of South Africa. As
Senior Counsel, Lindi has acted in various litigious matters of national importance and has advised state-owned
companies and the South African Government on numerous litigious matters and transactions of considerable scale.
Between 2006 and 2023, Ms Nkosi-Thomas has also acted as a Judge of the High Court of South Africa on multiple
occasions and continues to do so from time to time.
Among her various directorships, Ms Nkosi-Thomas serves as Chair of Miracle Upon Miracle Investments (MUM), the
private company which owns the rights to the Bengwenyama PGM project through a joint ownership structure in
which Southern Palladium holds a 70% stake in MUM, and the remaining 30% is held by a company wholly-owned by
the local Bengwenyama community.
Accompanying Ms. Nkosi-Thomas's appointment, the Company announced the resignation of Mr. Geoff Hiller from
his position as Non-Executive Director. The Board extends its sincere gratitude to Mr. Hiller for his significant
contributions as one of the founding Directors of the Company.
Expenditure Summary
A summary of the exploration and project evaluation expenditures for the quarter is provided as follows:
For the purpose of ASX Listing Rule 5.3.1, payments for exploration, evaluation and development during the quarter
totalled A$824,000 (31 March 2024: A$1,022,000). The Phase 1a and Phase 1b drilling programme, and facilities set
up and details of activities undertaken during the quarter are as described in this report.
Table 1: A detailed summary of the expenditure incurred for exploration, evaluation and development
Item 1Q24 2Q24
Assays & Analysis 34,071 58,718
Drilling 588,974 235,641
Environmental, social and labour plan 63,956 92,995
Exploration Management 262,257 261,240
Surface Right Usage 12,182 12,454
Technical Studies 34,976 107,290
Wireline Logging Services 25,891 55,579
Grand Total 1,022,306 823,917
For the purpose of ASX Listing Rule 5.3.2, the Company confirms there were no mining production and development
activities undertaken during the quarter.
For the purpose of ASX Listing Rule 5.3.5, payments to directors of Southern Palladium Limited during the quarter
totalled A$162,000. The payments were in respect of directors' salaries, fees and superannuation.
Payment to Minxcon Pty Ltd, a related party of two of the Company's Directors, Johan Odendaal and Daan van
Heerden, during the quarter totalled approximately A$404,000. The payments were in respect of expenses incurred
for management of the Bengwenyama Project.
Payment to Miracle Upon Miracle Investments (Pty) Limited, a related party of Southern Palladium Limited during
the quarter totalled approximately A$1,197,000. The payments were in respect of expenses incurred for the
Bengwenyama Project and corporate expenses.
Pursuant to ASX Listing Rule 5.3.4, the Company provides its actual expenditure on the individual items in the two
year "use of funds" statement in its IPO Prospectus since the date of its admission to ASX's Official List (being 8 June
2022) against the estimated expenditure on those items and an explanation of any differences.
Table 2 :Project use of Funds (A$)
Use of Funds Prospectus: Estimated Actual use from 8 June 2022 Variance
Expenditure to quarter end
Phase 1 drilling 7,716,000 7,625,320 90,680
Phase 2 drilling 3,805,000 - 3,805,000
Other technical work on the Project 1,677,000 392,641 1,284,359
Corporate and other related costs 3,918,000 3,782,637 135,363
Costs of the Offer 1,737,000 1,406,949 330,051
Total 18,853,000 13,207,547 5,645,453
The Company has completed its drilling programme for the PFS and substantially completed the other technical
work on the Project as originally contemplated. The Company anticipates that it will achieve the objectives as
originally stated in its IPO Prospectus within the near term and when completed, the total costs will be largely in
line with the IPO Prospectus estimates.
Cash
As at 30 June 2024, Southern Palladium held approximately A$5.43 million (31 March 2024: A$6.85 million) in cash.
This figure excludes cash held by the Company's 70% subsidiary, Miracle Upon Miracle Investments (Pty) Limited at
30 June 2024 of A$0.79 million (31 March 2023: A$0.64 million).
June 2024 Quarter – ASX Announcements
This Quarterly Activities Report contains information extracted from ASX market announcements reported in
accordance with the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves" ("2012 JORC Code"). Further details can be found in the following announcements lodged on the
ASX:
3-Apr-2024 Prefeasibility Study advancing with +30,000m drilling completed
11-June-2024 Lindi Nkosi-Thomas appointed as Non-Executive Director Geoff Hiller steps down as Non-Executive
Director
24-June-2024 Completion of Successful PFS Drilling Campaign
JORC Competent Persons Statement
Uwe Engelmann
The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources is
based on information compiled by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No.
400058/08, FGSSA). Mr Engelmann is a director of Minxcon (Pty) Ltd and a member of the South African Council
for Natural Scientific Professions. Minxcon provides geological consulting services to Southern Palladium Limited.
Mr. Engelmann 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'. Mr.
Engelmann consents to the inclusion in the report of the matters based on his information in the form and context
in which it appears. Mr Engelmann has a beneficial interest in Southern Palladium through a shareholding in
Nicolas Daniel Resources Proprietary Limited.
Daan van Heerden
The scientific and technical information contained in this announcement has been reviewed, prepared, and
approved by Mr Daan van Heerden (B Eng (Min.), MCom (Bus.Admin.), MMC, Pr.Eng. No. 20050318, AMMSA,
FSAIMM). Mr van Heerden is a director of Minxcon (Pty) Ltd and a Registered Professional Engineer with the
Engineering Council of South Africa, a Member of the Association of Mine Managers South African Council, as well
as a Fellow Member of the South African Institute of Mining and Metallurgy. Mr. van Heerden has sufficient
experience relevant to the styles of mineralisation and activities being undertaken to qualify as a Competent
Person, as such term is defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Mr. van Heerden consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears. Mr van Heerden has a beneficial interest in
Southern Palladium through a shareholding in Nicolas Daniel Resources Proprietary Limited.
This announcement has been approved for release by the Board of Southern Palladium Limited.
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
JSE Sponsor
Merchantec Capital
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Appendix 1
Tenements
The Company held the following tenement during the quarter. The Project comprises the full extent of the farms
Nooitverwacht 324 KT and Eerstegeluk 327 KT, both of which are in the Limpopo Province of South Africa. The
Project is located 250 km east-northeast of Pretoria. The tenement is 100% held through Miracle Upon Miracle
(Pty) Ltd, the 70% subsidiary of SPD. On September 29, 2023, Southern Palladium submitted its application for a
Mining Right (refer ASX Announcement 2 October 2023 - Bengwenyama Project Mining Right Application
Submitted), which received official acceptance on 17 October 2023 from the Department of Mineral Resource
and Energy (DMRE). This marked the commencement of the official consideration of the Mining Right Application
and of the Environmental Impact Assessment and expert studies, which are currently underway.
The Company did not enter into any farm-in or farm-out agreements during the quarter.
The following information is provided pursuant to Listing Rule 5.3.3 for the quarter:
Interest at beginning of quarter Interest at end of quarter
Farm name Extent (ha)
Nooitverwacht 324 KT 2,971.01
Eerstegeluk 327 KT 2,308.73 70% 70%
Total 5,279.74
No tenement has been disposed during the quarter.
Appendix 2
Mineral Resource
The total combined Mineral Resource for the UG2 and MR as at 1 December 2023 is summarised in Table 2.
Table 3: Combined UG2 and MR Mineral Resource Estimate as at 1 December 2023
Resource Tonnes Thickness Pt Pd Rh Au Ir Os Ru 4E 7E Cu Ni Moz Moz
Reef
Category Mt (m) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (4E) (7E)
Merensky Indicated 21.59 2.05 1.59 0.65 0.10 0.12 0.03 0.03 0.21 2.48 2.75 0.038 0.125 1.72 1.91
Merensky Inferred 77.90 1.97 2.01 0.81 0.13 0.15 0.04 0.04 0.25 3.10 3.43 0.035 0.119 7.77 8.60
Total 99.49 1.99 1.92 0.78 0.12 0.14 0.04 0.04 0.24 2.97 3.28 0.035 0.120 9.49 10.50
UG2 Indicated 20.80 0.73 3.60 3.61 0.75 0.12 0.25 0.17 1.24 8.08 9.75 0.033 0.162 5.40 6.52
UG2 Inferred 29.99 0.74 3.63 3.37 0.77 0.10 0.26 0.17 1.25 7.87 9.54 0.038 0.165 7.58 9.20
Total 50.79 0.73 3.62 3.47 0.76 0.11 0.26 0.17 1.25 7.95 9.63 0.036 0.164 12.99 15.72
Total 150.28 1.57 2.49 1.69 0.34 0.13 0.11 0.08 0.58 4.65 5.43 0.04 0.13 22.48 26.22
Note: All elements have been estimated individually and their combined grade will vary slightly from the estimated composite 4E and 7E modelled grades.
Platinum Group Minerals (PGMs) within the Bushveld Complex exhibit varying ratios (referred to as the Prill Split), with
platinum (Pt), palladium (Pd), and rhodium (Rh) constituting the predominant components. Additionally, other PGMs such as
ruthenium (Ru), iridium (Ir), and osmium (Os) are also present, although in smaller quantities. These ratios exhibit variations
from one section of the complex to another. Notably, the UG2 reef at the Bengwenyama project represents an even
distribution of Platinum and Palladium, accompanied by a notable concentration of Rhodium. Conversely, the Merensky Reef
is characterized by a high platinum content.
Figure 2: Platinum Group Metal + Gold Prill Split Figure 3: Project Stratigraphic Column
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Southern Palladium Limited
ABN Quarter ended ("current quarter")
59 646 391 899 30-Jun-24
Consolidated statement of cash flows Current Year to date
quarter (12 months)
$A'000 $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 (95) (247)
(e) administration and corporate costs (154) (887)
1.3 Dividends received (see note 3)
1.4 Interest received 27 239
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives
1.8 Other - Miracle Upon Miracle Pty Ltd operating expenditure (373) (1,095)
1.9 Net cash from / (used in) operating activities (595) (1,990)
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 (824) (4,127)
(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 - -
2.6 Net cash from / (used in) investing activities (824) (4,127)
Current Year to date
Consolidated statement of cash flows quarter (12 months)
$A'000 $A'000
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 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
3.1 Net cash from / (used in) financing activities - -
4 Net increase / (decrease) in cash and cash equivalents for
the period
4.1 Cash and cash equivalents at beginning of period 6,850 11,548
4.2 Net cash from / (used in) operating activities (item 1.9 above) (595) (1,990)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (824) (4,127)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held
4.6 Cash and cash equivalents at end of period * 5,431 5,431
* NOTE: This figure excludes cash held by the Company's related party, Miracle Upon Miracle Investments (Pty)
Limited at 30 June 2024 of A$0.784 million (31 March 2024: A$0.637 million).
5 Reconciliation of cash and cash equivalents Current quarter Previous
$A'000 quarter
at the end of the quarter (as shown in the consolidated statement $A'000
of cash flows) to the related items in the accounts
5.1 Bank balances 431 1,850
5.2 Call deposits 5,000 5,000
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) * 5,431 6,850
6 Payments to related parties of the entity and their Current
associates quarter
$A'000
6.1 Aggregate amount of payments to related parties and their
associates included in item 1 162
6.2 Aggregate amount of payments to related parties and their
associates included in item 2 404
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.
A total approximately of $566,000 was paid to related parties of the entities and their associates as follow:
- $162,000 are in respect of Directors' fees, salaries and superannuation accruing to Directors for services rendered during the
period.
- $404,000 was paid to Minxcon Pty Ltd for project management of the Bengwenyama Project. Two of the Company's Directors,
Johan Odendaal and Daan van Heerden, are significant and controlling shareholders in Minxcon.
7 Financing facilities
Total facility Amount
Note: the term "facility' includes all forms of financing arrangements available to amount at drawn at
the entity. quarter end quarter end
Add notes as necessary for an understanding of the sources of finance available $A'000 $A'000
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) (595)
8.2 (Payments for exploration & evaluation classified as investing
activities) (item 2.1(d)) (824)
8.3 Total relevant outgoings (item 8.1 + item 8.2) (1,419)
8.4 Cash and cash equivalents at quarter end (item 4.6) 5,431
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 5,431
8.7 Estimated quarters of funding available (item 8.6 divided by
item 8.3) 3.8
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: 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?
Answer: 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?
Answer: N/A
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 July 2024
Authorised by: The Audit Committee
(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.
13
Date: 31-07-2024 08:35:00
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