SLZ
Sultan Resources LTD
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Report
30 January 2025 9:20 PM
Sultan Resources provides an update on its exploration activities for the quarter ending December 31, 2024, focusing on gold, nickel-cobalt, and lithium projects in Western Australia and Canada.
Delay expected
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
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.
Summary
- Sultan Resources has provided an update on its activities for the quarter ending December 31, 2024.
- The company's projects include gold and nickel-cobalt exploration in Western Australia and lithium exploration in Canada.
- In Western Australia, the company is reviewing historical data and planning further exploration at the Kondinin-Lake Grace Project, which has a 30km prospective gold strike.
- The Khal Nickel-Cobalt project, also in WA, has been delayed due to depressed nickel prices.
- In Canada, the Ruddy Lithium Project has identified a priority target area, and the Kember Project is awaiting access for field reconnaissance.
- The company completed a placement during the quarter, raising $338,834 before costs.
- Sultan's cash position at the end of the quarter was approximately $336,000.
- Exploration and evaluation expenses for the quarter were around $51,000.
Sentiment
Score: 6
Explanation: The report is neutral to slightly positive. While there are some delays and a low cash position, the company has identified promising exploration targets and successfully raised capital. The sentiment is tempered by the lack of immediate results and the need for further funding.
Positives
- The Kondinin-Lake Grace Project has a significant prospective gold strike of at least 30km.
- Historical drilling at the Khal Nickel-Cobalt project suggests the presence of fertile nickel-cobalt sulfides.
- The Ruddy Lithium Project has identified a priority exploration target with low K/Rb ratios.
- The company successfully raised $338,834 through a placement.
- The company has completed compulsory tenement reductions, leading to reduced annual expenditure.
Negatives
- 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.
- The company's cash position is relatively low at approximately $336,000.
- Exploration expenditure for the quarter was $51,000.
Risks
- Depressed nickel prices are impacting the progress of the Khal Nickel-Cobalt project.
- Negotiations with First Nation groups can cause delays in exploration activities.
- The company's current cash position may require further capital raising.
- There is no guarantee that exploration efforts will lead to a significant discovery.
Future Outlook
The company intends to update the market with a more complete release on the residual gold prospectivity in due course. The company plans to combine field reconnaissance at Kember with additional groundwork at the priority target previously defined at the Ruddy Project. The company continues to review acquisition or joint venture opportunities.
Management Comments
- The Board is focused on ensuring any new project will deliver significant upside to all shareholders.
- There can be no guarantee that any transaction will meet such requirements and be concluded.
Industry Context
The report reflects the current trend of companies exploring for critical minerals like lithium and nickel-cobalt, as well as gold. The delay in nickel exploration due to market sentiment highlights the volatility in the commodities market. The focus on lithium in Canada aligns with the increasing global demand for battery metals.
Comparison to Industry Standards
- The company's exploration activities are comparable to other junior mining companies focused on early-stage exploration.
- The reported exploration expenditure of $51,000 is relatively low, suggesting a cautious approach to spending.
- The company's cash position of $336,000 is typical for a junior explorer, but may require further capital raising to fund future activities.
- The delay in nickel exploration due to market sentiment is a common issue faced by companies in the sector.
- The focus on lithium exploration in Canada is consistent with the current industry trend of seeking battery metals.
Stakeholder Impact
- Shareholders may be encouraged by the identification of priority exploration targets, but concerned about the low cash position and potential for further capital raising.
- Employees may be affected by the scaling down of exploration activities.
- Customers are not directly impacted as the company is in the exploration phase.
- Suppliers may see reduced activity due to the scaling down of exploration.
- Creditors may be concerned about the company's low cash position.
Next Steps
- The company intends to update the market with a more complete release on the residual gold prospectivity.
- The company plans to conduct further assessment at the Ruddy Lithium Project.
- The company plans to conduct field reconnaissance at the Kember Project once access is granted.
- The company will continue to review acquisition or joint venture opportunities.
Key Dates
- 16/05/2019: SLZ:ASX First Gold Assay Results
- 21/01/2020: SLZ:ASX Drill Program Approved to test anomalies at Lake Grace
- 3/06/2021: Sultan (ASX:SLZ) ASX Announcement: 2021 WA Nickel Project Update
- 23/11/2021: Sultan (ASX:SLZ) ASX Announcement: 2021 Drilling for WA Julimar-style Nickel Targets to Commence
- 3/02/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Exploration Update
- 4/05/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Aircore Results for Kulin Hill NI-Sulphide Target Received
- 22/06/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Sultan to Drill Nickel Targets
- 17/03/2023: Sultan (ASX:SLZ) Announcement: 2023 Sultan Resources enters agreement to acquire 100% interest in highly prospective Canadian lithium exploration ground inOntario, Canada
- 25/05/2023: Sultan (ASX:SLZ) Announcement: 2023 Sultan Completes Acquisition of Canadian Lithium Projects
- 1/06/2023: Sultan (ASX:SLZ) Announcement: 2023 Sultan Appoints Experienced Canadian Geological Team
- 14/06/2023: Sultan (ASX:SLZ) Announcement: 2023 Multiple mapped pegmatitic occurrences Kember Lithium Project
- 26/6/2023: Sultan (ASX:SLZ) Announcement: 2023 Multiple Pegmatite occurrences noted as exploration commences at Ruddy Project, North-Western Ontario
- 25/07/2023: Sultan (ASX:SLZ) Announcement: 2023 Priority Zone Identified at Ruddy Lithium Project, Ontario
- 22/09/2023: Sultan (ASX:SLZ) Announcement: 2023 Results Received at Ruddy Lithium Project
- 21/06/2023: SLZ:ASX announcement: Rio Tinto and Sultan enter into Option and JV Agreement
- 16/08/2023: SLZ:ASX announcement: Helicopter EM Survey Commences at Rio-Sultan Ground
- 24/10/2023: SLZ:ASX announcement: EM Survey Confirms Significant Geophysical Anomaly
- 6/03/2024: SLZ:ASX announcement: Calesi Nickel Prospect Drilling to Commence
- 14/3/2024: SLZ:ASX announcement: Calesi Prospect Drilling Completed
- 23/7/2024: SLZ:ASX announcement: Calesi Drill results
- 6 November 2024: Company issued 33,883,441 fully paid ordinary shares.
- 13 December 2024: Options were issued.
- 31st December 2024: End of the reporting quarter.
- 31 January 2025: Date of the ASX announcement.
Keywords
exploration, gold, nickel, cobalt, lithium, Kondinin-Lake Grace, Khal, Ruddy, Kember, Western Australia, Canada, pegmatite, drilling, tenements
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.
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.
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.
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.
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.
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
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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