Fitzroy River Corporation Quarterly Activities Report - June 2024
FZR (FZR) Share Update July 2024 Wednesday 24th
Fitzroy River Corporation Reports Quarterly Activities and Financial Updates
Fitzroy River Corporation Ltd (ASX: FZR) has released its quarterly activities report for the period ending 30 June 2024, detailing key financial updates and project developments.
Instant Summary:
- Received $110,585 in royalty income for the March 2024 quarter.
- Total royalty receipts for the 12 months to 30 June 2024 amounted to $663,149.
- No royalty income from Buru Energy due to suspension of operations.
- Announced A$30.2 million convertible debenture funding package for Bowden’s Silver Project.
- Completed the purchase of Snowy River Gold Mine from Oceana Gold Limited.
- Byron Energy delisted from the ASX effective 15 July 2024.
Weeks Royalty
During the quarter, Fitzroy River Corporation received a royalty payment of $110,585 related to the March 2024 quarter. The total royalty revenue from the Weeks Royalty for the 12 months ending 30 June 2024 was $663,149, compared to $1,082,774 in the prior corresponding period (PCP).
Buru Royalty
There was no royalty income from Buru Energy during the quarter due to the ongoing suspension of operations. The total royalty receipts from Buru for the 12 months to 30 June 2024 amounted to $93,266, down from $190,410 in the PCP.
Bowden’s Silver Project
On 18 July 2024, subsequent to the end of the quarter, Silver Mines Limited (ASX: SVL) announced a A$30.2 million convertible debenture funding package. The funds will be used for drilling, engineering studies for the Definitive Feasibility Study, pre-construction activities, and general administrative costs associated with the Bowden’s Silver Project.
Snowy River Gold Project
Fitzroy completed the purchase of the Snowy River Gold Mine from Oceana Gold Limited. Federation Mining Pty Ltd secured a funding package worth AUD$75 million from Australian Super, which will be used for the purchase and development of the mine and completion of the process plant engineering.
Sam’s Creek Gold Project
The Sam’s Creek Gold Project currently has a mineral resource of 9.1Mt @ 2.8g/t Au for 824koz of gold. Fitzroy holds a 1% royalty on all products produced from the project.
Byron Energy
Byron Energy was delisted from the ASX effective 15 July 2024. Fitzroy holds 11.2 million shares in Byron Energy, which had a closing price of $0.52 per share on 28 June 2024, valuing Fitzroy’s investment at approximately $0.58 million.
Potential Risks
The company’s risk profile remains largely unchanged from the previous quarter. Factors such as global oil and gas price instability, production interruptions, and FX movements could impact future royalty receipts.
The quarterly report highlights both positive developments and ongoing challenges for Fitzroy River Corporation. The completion of the Snowy River Gold Mine purchase and the funding package for Bowden’s Silver Project are significant positives. However, the lack of royalty income from Buru Energy and the overall decrease in total royalty receipts compared to the prior year may raise concerns among investors. The company's stock could experience moderate fluctuations as investors digest these mixed signals.
Investor Reaction:
Analysts have noted the positive steps taken with the Snowy River Gold Mine acquisition and the Bowden’s Silver Project funding. However, the suspension of Buru Energy operations and the decrease in total royalty receipts have led to a cautious outlook among some investors.
Conclusion:
Investors should keep an eye on future updates regarding the Bowden’s Silver Project and the Snowy River Gold Mine. The company's ability to navigate the challenges posed by the suspension of Buru Energy operations and fluctuating royalty receipts will be crucial in maintaining investor confidence.