SLZ
Sultan Resources LTD
ASX
Half Year Accounts
Sentiment:
Half-Year Financial Report
13 March 2024 2:30 AM
Sultan Resources Limited reports on its half-year financial results ending December 31, 2023, highlighting ongoing mineral exploration activities and a farm-in agreement with Rio Tinto Exploration.
Better than expected
The operating loss decreased to $406,844 from $1,261,284 in the prior corresponding period.
Basic and diluted loss per share improved to (0.27) cents from (1.51) cents.
Delay expected
Ground conditions have been unsuitable for drilling at Reserve 18455 since receiving permission to drill.
Capital raise
On 6 February 2024, the Company announced that it is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
The Offer closed on 5 March 2024.
under the Offer were issued on 12 March 2024.
The Company will liaise with the Underwriter to determine the allocation of the remaining Shortfall Securities in accordance with the term of the Underwriting Agreement (and sub-underwriting agreements) and complete the allotment of the Shortfall Securities.
Summary
- Sultan Resources Limited's report covers the half-year ended December 31, 2023.
- The company's primary activity during this period was mineral exploration.
- A key development was an option to farm-in and joint venture agreement with Rio Tinto Exploration (RTX) regarding tenement E70/5082 at the Lake Grace Project.
- RTX can earn an 80% interest in E70/5082 by spending $2 million on exploration within 5 years.
- Sultan retains full ownership of its principal area of focus, the Kulin Hill tenure on E70/5095.
- Drilling of the anomaly at Calesi is planned for March 2024, fully funded by RTX.
- Exploration continued at the Ruddy Project in Canada, identifying a priority lithium target area.
- The operating loss for the half-year was $406,844, compared to a loss of $1,261,284 for the same period in the previous year.
- Basic and diluted loss per share was (0.27) cents, compared to (1.51) cents in the prior period.
- The company had net current assets of $486,909, including cash and cash equivalents of $540,036 as of December 31, 2023.
- On February 6, 2024, the Company announced that it is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While the company is still loss-making, there's a significant improvement in financial performance compared to the previous year. The farm-in agreement with Rio Tinto Exploration is a major positive, indicating confidence in the project's potential. However, ongoing exploration risks and the need for further funding remain concerns.
Positives
- The farm-in agreement with Rio Tinto Exploration provides funding for exploration at the Calesi Ni prospect.
- Identification of a priority lithium target area at the Ruddy Project enhances the potential of the Canadian lithium projects.
- The operating loss has significantly decreased compared to the previous year, indicating improved financial performance.
- Loss per share has improved compared to the previous year.
- The company is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
Negatives
- The company incurred an operating loss of $406,844 for the half-year.
- Exploration activities require ongoing funding, as evidenced by the cash outflows from operating and investing activities.
- The company is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
Risks
- Exploration activities may not yield commercially viable mineral deposits.
- Access to certain areas for drilling, such as Reserve 18455, requires ongoing negotiations and approvals.
- Fluctuations in commodity prices could impact the economic viability of projects.
- The company is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
Future Outlook
Drilling is planned for March 2024 at the Calesi Ni prospect, funded by Rio Tinto Exploration. Further exploration is planned at the Ruddy Lithium Project. Further review required to define the next round of exploration and drill targets across the Lachlan Fold Belt Project, NSW.
Industry Context
The report reflects the ongoing demand for battery metals like lithium and nickel, with Sultan Resources actively exploring projects in both sectors. The farm-in agreement with Rio Tinto Exploration highlights the attractiveness of Sultan's Lake Grace project to major mining companies.
Comparison to Industry Standards
- Frontier Lithium Inc. (Frontier) has announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective April 28th 2023, calculated from two of four known spodumene-bearing pegmatite occurrences within its PAK Project holdings.
- Green Technology Metals describe the identification of the spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project (refer Figure 12) in a similar geological setting, which the Company considers highly encouraging.
Stakeholder Impact
- Shareholders: Potential for increased value through successful exploration and development of projects.
- Employees: Continued employment opportunities in exploration and project development.
- Customers: No direct impact as the company is focused on exploration.
- Suppliers: Opportunities for providing services and equipment for exploration activities.
- Creditors: Repayment of debts contingent on successful project development and funding.
Next Steps
- Proceed with drilling at the Calesi Ni prospect in March 2024.
- Continue exploration activities at the Ruddy Lithium Project.
- Define the next round of exploration and drill targets across the Lachlan Fold Belt Project, NSW.
- Determine the allocation of the remaining Shortfall Securities in accordance with the term of the Underwriting Agreement (and sub-underwriting agreements) and complete the allotment of the Shortfall Securities.
Key Dates
- 21/6/2023: ASX announcement regarding Rio Tinto and Sultan entering into an Option and JV Agreement.
- August 2023: NRG Geophysics contracted to fly a detailed helicopter-borne time-domain electromagnetic (HTDEM) survey.
- 12 December 2023: 1,250,000 unlisted options were issued to Mr Jeremy King.
- March 2024: Drilling of the anomaly at Calesi is planned.
- 13 March 2024: Date of the Directors' Report.
Keywords
SLZ
Sultan Resources LTD
ASX
Sector: Materials
Filings with Classifications
Delay expected
15 July 2025 9:23 PM
Capital Raising Update
- The rights issue was extended to ensure that all shareholders had ample opportunity to participate.
Capital raise
7 July 2025 7:16 PM
Exploration Update
- Proceeds from the current capital raising are in part intended to support early-stage exploration across the identified targets and progress towards drilling and potential discovery.
Delay expected
16 June 2025 6:47 PM
Capital Raise Update
- The closing date for the entitlement offer has been extended from Friday, 20 June 2025, to Friday, 4 July 2025.
Worse than expected
16 June 2025 6:47 PM
Capital Raise Update
- The extension of the closing date for the entitlement offer suggests that the company did not receive the expected level of subscriptions by the original deadline.
Capital raise
16 June 2025 6:47 PM
Capital Raise Update
- The document details a pro-rata non-renounceable entitlement offer to raise approximately $1,157,349 before costs, with a shortfall offer also available.
Capital raise
10 June 2025 7:52 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable pro-rata 1 for 1 entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer allows eligible shareholders to subscribe for new shares at an issue price of $0.005 per share.
Capital raise
1 June 2025 6:52 PM
Capital Raise Announcement
- Sultan Resources Ltd. has announced its intention to undertake an equity raising of up to approximately $1,157,349 before costs.
- This capital raise will be conducted via a non-renounceable pro-rata entitlement offer of fully paid ordinary shares.
Capital raise
1 June 2025 6:46 PM
Rights Issue Offer Document
- Sultan Resources Ltd is conducting a non-renounceable pro-rata rights issue to raise approximately $1,157,349 before costs.
- The Offer allows eligible shareholders to subscribe for one new share for every one share they currently hold at an issue price of $0.005 per share.
- The funds raised are primarily earmarked for working capital, including exploration expenditure, administration, and staff remuneration, with a small portion covering offer expenses.
- The Offer opens on June 11, 2025, and is scheduled to close on June 20, 2025, with new shares expected to be issued on June 27, 2025.
Capital raise
1 June 2025 6:40 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer is for 1 New Share for every 1 Share held by Eligible Shareholders at an issue price of $0.005 per Share.
- The funds are intended to finance proposed exploration expenditure, project assessment, and working capital.
Capital raise
28 April 2025 2:50 AM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Delay expected
28 April 2025 2:50 AM
Quarterly Activities Report
- Drilling at the Khal Nickel-Cobalt Project is delayed due to depressed nickel sentiment.
- Reconnaissance activities at Kember were delayed after First Nation groups requested additional time to inform its members of planned activities.
Delay expected
12 March 2025 2:11 AM
Half-Year Financial Report
- Access to the Kember Project in Canada has been delayed due to prolonged negotiations with First Nation groups.
Worse than expected
12 March 2025 2:11 AM
Half-Year Financial Report
- The company reported a net loss of $283,664 for the half-year, which is worse than the previous period's loss of $406,844.
Capital raise
30 January 2025 9:20 PM
Quarterly Report
- The company completed a placement to raise $338,834 during the quarter.
- The company has indicated that it can raise additional capital to continue to fund its operations.
Delay expected
30 January 2025 9:20 PM
Quarterly Report
- The Khal Nickel-Cobalt project has been delayed due to depressed nickel sentiment.
- Field reconnaissance at the Kember Project was delayed due to negotiations with First Nation groups.
Capital raise
13 December 2024 12:55 AM
Options Issuance Notice
- The company has issued options which, if exercised, could lead to a capital raise.
Capital raise
23 October 2024 6:32 PM
Trading Halt Announcement
- The company is undertaking a capital raising.
Capital raise
20 October 2024 10:44 PM
Annual General Meeting Notice
- The company is seeking shareholder approval for a 10% placement facility to raise capital.
- The exact amount of capital to be raised will depend on market conditions and the number of equity securities issued.
Delay expected
15 October 2024 5:57 PM
Project Update
- Reconnoissance activities at the Kember Project have been delayed due to consultations with First Nation groups.
- The submission for OJEP funding at Kember may not be progressed if access isn't gained by mid-November 2024, potentially delaying exploration.
Delay expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project have been delayed due to requests from a First Nation group.
Capital raise
29 July 2024 7:07 PM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Worse than expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Rio Tinto Exploration (RTX) has withdrawn from the farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling failed to find significant gold values.
Worse than expected
22 July 2024 6:36 PM
Exploration Update
- The drilling results did not yield economically significant gold or nickel values, leading to Rio Tinto's withdrawal, indicating worse than expected outcomes.
Delay expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project in Canada have been delayed due to First Nation consultation requirements.
Worse than expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Drilling at the Calesi prospect did not find support for magmatic nickel sulfides, which is worse than expected.
Better than expected
13 March 2024 2:30 AM
Half-Year Financial Report
- The operating loss decreased to $406,844 from $1,261,284 in the prior corresponding period.
- Basic and diluted loss per share improved to (0.27) cents from (1.51) cents.
Delay expected
13 March 2024 2:30 AM
Half-Year Financial Report
- Ground conditions have been unsuitable for drilling at Reserve 18455 since receiving permission to drill.
Capital raise
13 March 2024 2:30 AM
Half-Year Financial Report
- On 6 February 2024, the Company announced that it is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
- The Offer closed on 5 March 2024.
- under the Offer were issued on 12 March 2024.
- The Company will liaise with the Underwriter to determine the allocation of the remaining Shortfall Securities in accordance with the term of the Underwriting Agreement (and sub-underwriting agreements) and complete the allotment of the Shortfall Securities.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.