SLZ
Sultan Resources LTD
ASX
Half Year Accounts
Sentiment:
Half-Year Financial Report
12 March 2025 2:11 AM
Sultan Resources Limited reports on its half-year financial results ending December 31, 2024, highlighting ongoing mineral exploration activities and financial performance.
Worse than expected
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.
Delay expected
Access to the Kember Project in Canada has been delayed due to prolonged negotiations with First Nation groups.
Summary
- Sultan Resources Limited presents its financial report for the half-year ended December 31, 2024.
- The company's principal activity during this period was mineral exploration.
- A placement of 33,883,441 fully paid ordinary shares was completed at $0.01 per share on November 6, 2024.
- The company incurred a loss after income tax of $283,664 for the half-year.
- Basic and diluted loss per share amounted to (0.14) cents.
- Exploration and evaluation assets are valued at $9,332,107.
- The company is reviewing its Thaduna project and continues exploration data review across its Lachlan Fold Belt Project in NSW.
- The company withdrew from the Ontario Junior Exploration Programme (OJEP) funding for Kember activities after confirming that access could not be confirmed in the available field season.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While the company is actively exploring and has secured funding through a placement, it also reported a net loss and faces challenges with project access and going concern risks.
Positives
- The company successfully completed a placement, raising capital for operations.
- Exploration activities are ongoing across multiple projects in Western Australia, Ontario and New South Wales.
- The company is actively seeking funding opportunities, such as the Exploration Incentive Scheme (EIS) grant for the Khal target.
- The company has identified a priority target area within an interpreted Goldilocks Zone for further work at the Ruddy Project in Canada.
Negatives
- The company reported a net loss of $283,664 for the half-year.
- The company experienced net cash outflows from operating and investing activities of $334,886 and $231,589 respectively.
- The company withdrew from the Ontario Junior Exploration Programme (OJEP) funding for Kember activities after confirming that access could not be confirmed in the available field season.
- Tenure has recently undergone a compulsory 40% reduction, and the prospective strike remains intact.
Risks
- The company's ability to continue as a going concern is dependent on raising additional working capital and scaling down operations.
- Access to the Kember Project in Canada has been delayed due to prolonged negotiations with First Nation groups.
- Exploration activities are subject to inherent risks, including the possibility of not discovering commercially viable mineral deposits.
- The company is re-applying for renewal of Tenements EL8734 and EL8735, due in April 2025.
Future Outlook
The company intends to continue its exploration activities across its various projects and seek funding opportunities to advance these projects.
Management Comments
- The Directors of Sultan Resources Limited (SLZ or the Company) present their report, together with the financial statements on the Company consisting of Sultan Resources Limited and its controlled entities (the Group) for the half-year ended 31 December 2024 (the Period).
- It is recommended that the Directors Report be read in conjunction with the annual financial statements for the year ended 30 June 2024 and considered together with any public announcement made by the Company during the Period and up to the date of this report.
Industry Context
Sultan Resources operates in the mineral exploration industry, focusing on gold, nickel, cobalt, and lithium projects. The company's activities are influenced by commodity prices, exploration success, and regulatory environments in Australia and Canada.
Comparison to Industry Standards
- The report mentions other companies in the lithium sector, such as PAK (TSXV:FL), Mavis resource (ASX:CRR), Root Bay, Seymour Lake and McCombe resources (ASX:GT1), Georgia Lake (TSXV:RCK), Separation Rapids (TSX:AVL), and Jackpot (Imagine Lithiumprivate).
- These companies serve as benchmarks for Sultan Resources' lithium exploration efforts in Ontario, Canada.
- The report references NI43-101 instruments and ASX releases from these companies, indicating a comparison against industry-standard reporting practices.
Stakeholder Impact
- Shareholders: The net loss and going concern uncertainty may negatively impact shareholder value.
- Employees: Potential scaling down of operations could affect employment.
- Customers: Not applicable as the company is in the exploration phase.
- Suppliers: Potential scaling down of operations could affect supplier contracts.
- Creditors: The company's ability to meet its obligations is dependent on raising additional capital.
Next Steps
- Continue exploration activities across various projects.
- Seek funding opportunities, including the Exploration Incentive Scheme (EIS) grant.
- Advance exploration at the Lake Grace Project, including the Calesi Ni Prospect and Khal Ni-Co Project.
- Review the Thaduna project.
- Re-apply for renewal of Tenements EL8734 and EL8735, due in April 2025.
- Combine field reconnaissance of Kember with additional groundwork at the priority target previously defined at the Ruddy Project.
Key Dates
- 1967: Historical drilling conducted on the edge of the Khal Nickel-Cobalt sequence.
- 1973: Historical drilling conducted on the edge of the Khal Nickel-Cobalt sequence.
- 16/05/2019: SLZ:ASX First Gold Assay Results
- 21/01/2020: SLZ:ASX Drill Program Approved to test anomalies at Lake Grace
- March 2024: Entitlement Offer was completed.
- 30 June 2024: End of the previous financial year.
- 06 November 2024: Company completed a Placement and issued a total of 33,883,441 fully paid ordinary shares at an issue price of $0.01 per new share.
- 13 December 2024: The Options were issued.
- 31 December 2024: End of the half-year reporting period.
- 25th February 2025: Funds required to be spent on ground prior to this date for Ontario Junior Exploration Programme (OJEP) funding for Kember activities.
- 4th August 2025: Next round of Applications opening for Exploration Incentive Scheme (EIS) co-funded grant for drill testing of the Khal target.
- April 2025: Tenements EL8734 and EL8735 renewal due.
- 12 March 2025: Date of 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.
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