COPPER STRIKE LIMITED ASX Release | ASX Code |
30 April 2019 | CSE |
QUARTERLY REPORT ON ACTIVITIES
January to March 2019
Overview
Copper Strike Limited ('Copper Strike' or 'the Company') is pleased to provide an update to its activities for the quarter ending 31 March 2019.
The Company's operating costs continue to be tightly controlled, with low ongoing operating expenditure.
Copper Strike currently has no exploration interests.
Corporate Activities
As at 31 March 2019 Copper Strike owns 11.02 million shares in Syrah Resources Limited (including 4.1 million secured shares).
During the March 2019 quarter, the Company decided to terminate the Loan Agreement ('Original Loan') announced on 4 October 2017. The Original Loan was terminated earlier than the original 2-year term at the Company's option and on a non-recourse basis. Cessation of the $4.2 million Original Loan occurred by the Lender taking possession of 2,281,782 Syrah shares held as security, hence leaving no obligation outstanding.
The Company also announced that it had entered into a New Loan Agreement ('New Loan'), whereby the Company received $3.95 million with the New Loan initially secured by the provision of 4,100,000 Syrah shares by way of security.
A summary of the material terms of the new loan are as follows:
-Loan: $3.95 million
-Repayment Date: 3 years
-Interest Rate: 3.25%
-Origination Fee 2.50%
-Initially Secured Syrah Shares: 4,100,000
The purpose of the New Loan is to enable Copper Strike to acquire additional investments and replaces the terms of the Original Loan that resulted in a reduction of
Registered Office
Copper Strike Limited | ABN 16 108 398 983 |
Level 4 - 100 Albert Road South Melbourne Victoria 3205 Australia
Ph 03 9692 7222
www.copperstrike.com.au
the Company's investment in Syrah by 2,281,782 shares and a substantial gain on settlement of the Original Loan.
During the quarter, Copper Strike acquired an additional 1,250,000 Syrah shares for $1.369 million partially utilising the proceeds from the New Loan. This additional purchase of Syrah shares confirms the Board's views that it believes that the share price of Syrah has considerable potential upside and is the Director's view that it is in the best interests of the Company and its shareholders to increase this investment supported by a moderate amount of gearing.
Subsequent to the end of the quarter, the Board has reviewed other opportunities and will opportunistically seek to acquire additional investments that the Director's believe have considerable upside potential and are in the best interests of the Company and shareholders.
Syrah Shareholding
Highlights from Syrah Quarterly Activities Report - March 2019
Balama Graphite Operation
-Produced 48kt, including March production record of ~19kt, up 45% relative to Q4 2018.
-C1 operating cash cost continues to decline.
-Initial Vanadium sampling completed, facilitating market engagement.
Sales and Marketing
-Sold 48kt versus 37kt in Q4 2018 through continued improvement in contract performance and logistics.
-Weighted average graphite price achieved of US$469 per tonne (CIF), lower than planned.
-End-marketdemand drivers positive: 2018 steel production and global electric vehicle sales up 4.6% and 64% respectively.
Battery Anode Material (BAM) Project
-Unpurified spherical graphite for qualification dispatched, targeting ex-China customers.
-Commissioning of the purification circuit commences in May with first purified spherical production planned during Q2 2019.
-Major review of BAM commercial scale plant and product range essentially completed, providing attractive economics.
Finance and Corporate
-Net cash outflow was US$14.7 million versus plan US$20 million with difference being ~US$5m payments timing variance. Cash at quarter end was US$62.4 million.
2
Registered Office
Copper Strike Limited | ABN 16 108 398 983 |
Level 4 - 100 Albert Road South Melbourne Victoria 3205 Australia
Ph 03 9692 7222
www.copperstrike.com.au
-Q2 2019 planned net cash outflow of US$14.5 million plus US$5 million carried over from Q1 for total forecast US$19.5 million. Forecast cash balance at end of Q2 2019 ~ US$43 million.
-Extensive engagement in development of debt funding during Q1 with Syrah continuing to evaluate options.
Administration
Operating expenditure for the Quarter amounted to $50,000, whilst investing activity expenditure amounted to $1.369 million.
As of 31 March 2019, Copper Strike had approximately $2.904 million in the bank. Expenditure going forward is expected to be approximately $85,000 per Quarter including interest, and excluding one-off items.
Corporate Details
Issued Capital 106,844,810 shares
Share Price $0.099 (29 April 2019)
Directors and Management
Mr Mark Hanlon - Non-Executive Chairman
Mr Brendan Jesser - Non-Executive Director
Mr Harry Hatch - Non-Executive Director
Ms Melanie Leydin - Company Secretary
3
Registered Office
Copper Strike Limited | ABN 16 108 398 983 |
Level 4 - 100 Albert Road South Melbourne Victoria 3205 Australia
Ph 03 9692 7222
www.copperstrike.com.au
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
COPPER STRIKE LIMITED
ABN | Quarter ended ("current quarter") | |
16 108 398 983 | 31 March 2019 | |
Consolidated statement of cash flows | Current quarter | Year to date (9 | ||||
$A'000 | months) | |||||
$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 | (16) | (73) | |||
(e) administration and corporate costs | (34) | (162) | ||||
1.3 | Dividends received (see note 3) | - | - | |||
1.4 | Interest received | 1 | 3 | |||
1.5 | Interest and other costs of finance paid | - | - | |||
1.6 | Income taxes paid | - | - | |||
1.7 | Research and development refunds | - | - | |||
1.8 | Other (provide details if material) | - | - | |||
1.9 | Net cash from / (used in) operating | (49) | (232) | |||
activities | ||||||
2. | Cash flows from investing activities | |||||
2.1 | Payments to acquire: | |||||
(a) property, plant and equipment | - | - | ||||
(b) | tenements (see item 10) | - | - | |||
(c) | investments | (1,369) | (1,369) | |||
(d) | other non-current assets | - | - | |||
+ See chapter 19 for defined terms | Page 1 | |||||
1 September 2016 |
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Consolidated statement of cash flows | Current quarter | Year to date (9 | ||||
$A'000 | months) | |||||
$A'000 | ||||||
2.2 | Proceeds from the disposal of: | |||||
(a) property, plant and equipment | - | - | ||||
(b) | tenements (see item 10) | - | - | |||
(c) | investments | - | - | |||
(d) | other current assets | - | - | |||
2.3 | Cash flows from loans to other entities | - | - | |||
2.4 | Dividends received (see note 3) | - | - | |||
2.5 | Other - Security Deposit refund | 2 | 2 | |||
2.6 | Net cash from / (used in) investing | (1,367) | (1,367) | |||
activities | ||||||
3. | Cash flows from financing activities | |||||
3.1 | Proceeds from issues of shares | - | - | |||
3.2 | Proceeds from issue of convertible notes | - | - | |||
3.3 | Proceeds from exercise of share options | - | - | |||
3.4 | Transaction costs related to issues of | - | - | |||
shares, convertible notes or options | ||||||
3.5 | Proceeds from borrowings | 3,852 | 3,852 | |||
3.6 | Repayment of borrowings | - | - | |||
3.7 | Transaction costs related to loans and | - | (64) | |||
borrowings | ||||||
3.8 | Dividends paid | - | - | |||
3.9 | Other (provide details if material) | - | - | |||
3.10 | Net cash from / (used in) financing | 3,852 | 3,788 | |||
activities | ||||||
4. | Net increase / (decrease) in cash and | |||||
cash equivalents for the period | ||||||
4.1 | Cash and cash equivalents at beginning of | 468 | 715 | |||
period | ||||||
4.2 | Net cash from / (used in) operating | (49) | (232) | |||
activities (item 1.9 above) | ||||||
4.3 | Net cash from / (used in) investing activities | (1,367) | (1,367) | |||
(item 2.6 above) | ||||||
4.4 | Net cash from / (used in) financing activities | 3,852 | 3,788 | |||
(item 3.10 above) | ||||||
4.5 | Effect of movement in exchange rates on | - | - | |||
cash held | ||||||
4.6 | Cash and cash equivalents at end of | 2,904 | 2,904 | |||
period | ||||||
+ See chapter 19 for defined terms | Page 2 | |||||
1 September 2016 |
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Copper Strike Limited published this content on 01 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 April 2019 23:37:04 UTC
