PRS
Prospech Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
27 April 2025 7:52 PM
Prospech Limited reports a 90% increase in the Inferred Mineral Resource Estimate at its Korsns REE project in Finland, alongside progress in metallurgical test work and exploration activities in Slovakia.
Better than expected
The Inferred Mineral Resource Estimate at Korsns REE project increased by 90% to 13.5Mt @ 1.02% TREO, which is a significant improvement.
Capital raise
The Company intends undertaking a capital raising post the Companys Annual General Meeting on 7 May 2025 and is in discussing with a number of parties about this.
The Company and Directors have an established record of being able to raise successfully.
Summary
- Prospech Limited's quarterly activities report highlights significant progress at the Korsns REE project in Finland, with a 90% increase in the Inferred Mineral Resource Estimate to 13.5Mt @ 1.02% TREO.
- The Exploration Target at Korsns also indicates further growth potential, estimated at 9 to 11 million tonnes at 0.9 to 1.1% TREO.
- Metallurgical test work is underway to develop REE recovery pathways, supported by the European Commissions REMHub initiative.
- In Slovakia, a new Southern Caldera target area has been defined at the Zlatno Cu-Au project, with gold sampling initiated from historical drill core dumps.
- Exploration expenditure for the quarter totaled $399,309, with $100,000 paid to Directors for consulting fees.
- The company had $312,000 in cash and cash equivalents at the end of the quarter.
- Prospech intends to undertake a capital raising post the Annual General Meeting on 7 May 2025.
Sentiment
Score: 7
Explanation: The report highlights positive developments in resource estimation and exploration, but also indicates a need for further funding. The increase in resource estimate is a strong positive, but the reliance on future capital raising introduces some uncertainty.
Positives
- Significant increase in the Inferred Mineral Resource Estimate at the Korsns REE project.
- Identification of a substantial Exploration Target at Korsns, indicating further resource potential.
- Ongoing metallurgical test work programs aimed at developing efficient REE processing techniques.
- Definition of a new target area at the Zlatno project in Slovakia, with promising historical copper mineralization.
- Initiation of gold sampling at Zlatno, which has never been sampled for gold before.
- Participation in the European Commissions REMHub initiative, aligning with the EU's REPowerEU strategy.
Negatives
- The potential quantity and grade of the Exploration Target is conceptual in nature and uncertain.
- Cash reserves decreased from $796,000 to $312,000 during the quarter.
- The company is reliant on raising capital to fund future operations.
Risks
- The Exploration Target is conceptual, and further exploration may not result in a Mineral Resource.
- Metallurgical test work may not yield economically viable REE recovery pathways.
- The company's ability to raise capital is not guaranteed.
- Renewal of the Hodrusa-Hamre exploration license in Slovakia is pending.
- The company's cash reserves are limited, requiring careful management of expenditures.
Future Outlook
The company plans to convert the current Exploration Target to a Mineral Resource Estimate, upgrade existing Inferred Resources to Indicated classification, and conduct a regional geophysical survey to identify new REE-bearing lodes. Prospech intends undertaking a capital raising post the Annual General Meeting on 7 May 2025.
Management Comments
- Jason Beckton, Managing Director, states that the updated Inferred Mineral Resource Estimate at Korsns marks a major milestone for Prospech and confirms the emergence of the EUs newest rare earths resource.
- Jason Beckton believes that Korsns is advancing towards becoming a significant near-term contributor to the European rare earths supply chain.
Industry Context
The focus on rare earth elements aligns with the global push for critical minerals and the European Union's strategy to secure its supply chain for renewable energy technologies. The REMHub initiative and the REPowerEU strategy highlight the importance of domestic exploration and processing capabilities.
Comparison to Industry Standards
- The report mentions the Neo Materials refining facility in Estonia, suggesting a potential regional processing hub for REEs.
- The participation in the REMHub initiative indicates a focus on developing efficient processing techniques, similar to other companies involved in REE extraction and processing.
- The reference to Google LLC building a data centre near the Jokikangas deposits highlights the potential for local demand for resources and infrastructure development.
Stakeholder Impact
- Shareholders: The increased resource estimate at Korsns could positively impact shareholder value.
- Employees: Continued exploration and development activities provide job security and potential growth opportunities.
- Customers: The potential for a secure REE supply chain could benefit downstream industries.
- Suppliers: Ongoing exploration and metallurgical test work will require services from various suppliers.
- Creditors: The need for capital raising may impact the company's debt profile.
Next Steps
- Conduct expanded metallurgical test work program.
- Undertake targeted infill and step-out drilling.
- Upgrade resource classification.
- Conduct regional geophysical survey to explore for new lodes.
- Undertake a capital raising post the Annual General Meeting on 7 May 2025.
Key Dates
- 31 March 2025: End of the reported quarter.
- April 2025: MD J Beckton in Zlatno project with core historically assayed only for copper for which gold sampling is now underway.
- 7 May 2025: Date of the Company's Annual General Meeting, after which a capital raising is planned.
Keywords
REE, Korsns, Exploration, Metallurgical Test Work, Zlatno, Mineral Resource Estimate, Prospech, Finland, Slovakia
PRS
Prospech Limited
ASX
Sector: Materials
Filings with Classifications
Better than expected
22 June 2025 7:48 PM
Exploration Update
- The detection of gold in historically discarded core, despite modest grades, indicates a previously overlooked significant gold potential within the Zlatno project, which is a positive surprise.
Worse than expected
28 May 2025 7:18 PM
Regulatory Compliance Update
- The results were worse because specific disclosures in a previous presentation were found to be non-compliant with ASX Listing Rules 5.12 or 5.7 and had to be retracted, which negatively impacts investor confidence.
Capital raise
28 May 2025 7:18 PM
Regulatory Compliance Update
- Future drilling at the Hodrua-Hmre project in Slovakia is explicitly stated as being subject to securing additional funding, indicating a potential need for capital.
Capital raise
26 May 2025 7:21 PM
Trading Halt Request
- Prospech Limited expects to make an announcement regarding a material capital raising.
- The trading halt is specifically requested to facilitate this capital raising announcement.
Capital raise
6 May 2025 8:52 PM
Company Presentation
- The company is considering joint venture partners in Slovakia, which may imply a potential need for additional funding or capital.
Better than expected
28 April 2025 2:49 AM
Resource Estimate Update
- The company reported a 90% increase in the updated JORC Code 2012 Inferred Mineral Resource Estimate (MRE) at the Korsns project.
Capital raise
27 April 2025 7:52 PM
Quarterly Activities Report
- The Company intends undertaking a capital raising post the Companys Annual General Meeting on 7 May 2025 and is in discussing with a number of parties about this.
- The Company and Directors have an established record of being able to raise successfully.
Better than expected
27 April 2025 7:52 PM
Quarterly Activities Report
- The Inferred Mineral Resource Estimate at Korsns REE project increased by 90% to 13.5Mt @ 1.02% TREO, which is a significant improvement.
Better than expected
21 April 2025 7:58 PM
Resource Estimate Update
- The Inferred Mineral Resource Estimate increased by 90% compared to the previous estimate.
Capital raise
3 April 2025 7:22 PM
Notice of Annual General Meeting
- The company is seeking approval for additional capacity to issue equity securities up to 10% of its issued capital under ASX Listing Rule 7.1A.
- The company intends to use any funds raised under such an issue for continued exploration and evaluation of the Company's exploration projects and general working capital.
Capital raise
26 March 2025 1:14 AM
Annual Results
- Management have prepared cash flow projections for the period from 1 January 2025 to 31 March 2026 that indicate the Group is able to continue as a going concern.
- These cash flow projections assume the Group continues substantial exploration activities in the areas of interest and that additional funding from shareholders or other parties will be obtained.
Worse than expected
26 March 2025 1:14 AM
Annual Results
- The company reported a loss for the year ended 31 December 2024 of $1,820,276 (2023 $1,600,611).
Better than expected
17 March 2025 6:55 PM
Exploration Update
- The assay results are better than expected due to the confirmation of high-grade REE mineralization continuity and extent.
Better than expected
26 February 2025 5:06 PM
Exploration Update
- The assay results are better than expected due to the confirmation of high-grade REE zones and the discovery potential within the old mine area.
Better than expected
19 February 2025 5:43 PM
Exploration Update
- The assay results indicate higher grades and continuity of REE mineralization than previously known, suggesting a potentially larger and more valuable resource.
Better than expected
6 February 2025 5:02 PM
Exploration Update
- The assay results confirm the strongest mineralized intercepts seen to date, reinforcing the continuity of high-grade zones.
Capital raise
22 January 2025 5:57 PM
Quarterly Activities Report
- The company has until 26 February 2025 to place the Shortfall from the Rights Issue which completed on 26 November 2024.
- The company anticipates receiving up to a further 223,330 (~A$372,000) of European Union grant funding.
Better than expected
5 January 2025 5:57 PM
Exploration Update
- The document highlights a significant increase in hafnium prices, making the project more economically viable than previously anticipated.
- Historical drill results indicate promising hafnium grades, exceeding the economically interesting benchmarks.
Better than expected
1 December 2024 7:44 PM
Rights Issue Completion Announcement
- The rights issue exceeded expectations by raising $785,944, surpassing the likely minimum target needed for the project.
Better than expected
14 November 2024 5:58 PM
Exploration Update
- The drilling results at the Korsns project exceeded expectations, with high-grade REE intersections reported.
Capital raise
14 November 2024 5:58 PM
Exploration Update
- Prospech is raising up to \$2.2 million through a rights issue and placement.
- The funds will be used to fund exploration and evaluation expenditure at the Korsns REE project and Slovakian projects.
Better than expected
10 November 2024 5:58 PM
Exploration Update
- The assay results significantly exceeded expectations, revealing higher-than-anticipated grades of terbium and dysprosium, crucial HREEs for high-strength magnets.
Capital raise
6 November 2024 5:52 PM
Rights Issue Update
- The rights issue is a form of capital raising.
Better than expected
3 November 2024 5:35 PM
Exploration Update
- The assay results significantly exceeded expectations, revealing high-grade REE intersections that were previously unknown due to the historical focus on lead mining.
Better than expected
21 October 2024 5:46 PM
Investor Presentation
- Drill results at the Korsns project exceeded expectations, validating historical data and supporting resource estimation.
Capital raise
21 October 2024 5:46 PM
Investor Presentation
- Prospech is undertaking a non-renounceable rights issue of 1 for 4 shares and a placement to raise up to \$2.2 million.
- The funds will be used for exploration and evaluation expenditure at the Korsns REE project in Finland and Slovakian projects.
Capital raise
20 October 2024 6:31 PM
Prospectus
- The company may require future additional funding to continue both existing and proposed activities.
- Raising additional capital may be dilutive to existing shareholders.
Worse than expected
20 October 2024 6:31 PM
Prospectus
- The company's half-year report shows a net loss of $1,148,899 and cash on hand of only $1,127,433, indicating a precarious financial position and raising concerns about its ability to continue as a going concern.
Capital raise
20 October 2024 6:19 PM
Capital Raising Announcement
- Prospech Limited is undertaking a $2.3 million non-renounceable rights issue.
- The issue price is $0.03 per share.
Better than expected
15 October 2024 5:55 PM
Exploration Update
- The assay results significantly exceeded expectations, with high-grade REE intercepts surpassing previous estimates and revealing substantial enrichment in high-value magnet REEs.
Better than expected
18 September 2024 7:36 PM
Exploration Update
- The successful completion of over 1,000 meters of drilling and the securing of a significant EU grant exceeded expectations for the project's progress.
Capital raise
12 September 2024 9:49 PM
Interim Financial Report
- The company completed a placement to raise $1,071,808 for further drilling, resource definition, metallurgical test work at the Korsns project in Finland, and potential drilling at the Pukanec gold-silver project in Slovakia.
Worse than expected
12 September 2024 9:49 PM
Interim Financial Report
- The company reported a loss of $1,148,899 for the period, indicating worse than expected financial performance.
Better than expected
10 September 2024 7:40 PM
Exploration Update
- The assay results significantly exceeded expectations, revealing a much higher grade of TREO and NdPrO than initially anticipated, enhancing the project's economic viability.
Better than expected
9 September 2024 7:16 PM
Grant Announcement
- The securing of a substantial EU grant for the Korsnäs project is a positive development, exceeding expectations and demonstrating the project's merit within the European critical minerals strategy.
Better than expected
23 July 2024 8:49 PM
Quarterly Activities Report
- The company reported multiple high-grade REE intercepts with strong NdPr enrichment from historical core sampling at Korsnäs, exceeding typical exploration expectations.
- An initial Exploration Target was successfully established for the Korsnäs TSF, adding potential scale to the project.
- The company successfully completed a capital raise, securing funding for near-term exploration activities.
Capital raise
23 July 2024 8:49 PM
Quarterly Activities Report
- The company noted its estimated funding availability is 1.5 quarters based on current expenditure.
- Prospech anticipates receiving further funding from the exercise of 71,668,343 options at $0.04, expiring in April 2025.
- The company stated it will also be examining alternative funding options.
Capital raise
12 June 2024 7:15 PM
Trading Halt Request
- Prospech expects to make an announcement regarding a material capital raising.
Better than expected
12 May 2024 7:37 PM
Exploration Update
- The assay results show a higher average TREO (6,465 ppm) compared to the grab samples taken last year (4,139 ppm).
Capital raise
23 April 2024 9:58 PM
Quarterly Activities Report
- The Company is in discussions with a number of brokers with a view to raising further funds following the completion and announcement of a substantial number of drill core assay results which are, as previously reported, pending.
Better than expected
23 April 2024 9:58 PM
Quarterly Activities Report
- The assay results from Korsns REE project show better than expected high-grade rare earth element intersections.
Capital raise
27 March 2024 6:58 PM
Annual Results
- The ongoing operations of the Group are dependent upon the Group raising additional funding from shareholders or other parties or reducing discretionary expenditure in line with available funding.
Delay expected
27 March 2024 6:58 PM
Annual Results
- The drill program at Kolba was terminated due to mechanical failure and inadequate core recovery.
Worse than expected
27 March 2024 6:58 PM
Annual Results
- The company reported a net loss of $1,600,611 for the year ended 31 December 2023, which is worse than the previous year's loss of $1,750,601.
Better than expected
25 March 2024 6:09 PM
Exploration Update
- The assay results show higher grades of TREO, including NdPr oxide, than previously anticipated, indicating a better-than-expected potential for the Korsns project.
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