Future Metals NL - Quarterly Activities and Cashflow Report - June 2024
FUTURE METALS NL (FME) Share Update July 2024 Monday 29th
Future Metals NL Reports Quarterly Activities and Cashflow
Future Metals NL (ASX | AIM: FME) has released its Quarterly Activities and Cashflow Report for the period ending 30 June 2024, highlighting significant progress in exploration and financial management.
Instant Summary:
- Focus on drilling priority targets at Eileen Bore and Alice Downs Corridor.
- Assessment of potential copper and precious metals projects near the Panton PGM Project.
- Completion of environmental assessment at Panton and commencement of Heritage Survey.
- Scheduled drilling at Eileen Bore for September quarter.
- Awarded $295,000 in co-funded cash grants under the WA Government Exploration Incentive Scheme.
- Shareholder approval for a new Options Offer.
Exploration and Development
During the quarter, Future Metals focused on drilling priority targets at Eileen Bore and within the Alice Downs Corridor, aiming for new discoveries of Cu-Ni-PGM mineralisation near potential future operations at its Panton PGM Project. The company also assessed potential copper and precious metals project opportunities within strategic proximity to the Panton PGM Project.
Post quarter end, the company completed an environmental assessment at Panton and commenced a Heritage Survey over the Alice Downs Corridor and Panton North Area. Drilling at the Eileen Bore Prospect is on schedule for the September quarter, pending heritage clearance approval.
Grants and Financial Management
Future Metals was awarded $295,000 in co-funded cash grants under the WA Government Exploration Incentive Scheme, with $180,000 allocated for drilling at Eileen Bore and $115,000 for ground gravity surveys at Panton North and across the Alice Downs Corridor. The company also received shareholder approval for a planned Options Offer of new 3-year options exercisable at 6 cents per share with an issue price of 0.025 cents each.
Corporate Activities
During the quarter, the company announced a proposed Options Offer to subscribe for 1 new option for every 1 FMEO ASX-listed option held, raising a nominal A$40,000. The company engaged CPS Capital Group Pty Ltd to act as underwriter for the full Option Offer. Additionally, the company continued to reduce discretionary corporate expenditure to maintain cash during the current period of low PGM prices and applied for funding under the Research and Development (R&D) Tax Incentive Program.
Financial Overview
The Quarterly Cashflow Report for the period ended 30 June 2024 shows that the company held approximately A$2.28m in cash at the end of the quarter. Exploration and project development expenditure amounted to approximately A$471k, while payments for administration and corporate costs amounted to approximately A$231k, including payments to related parties and their associates of A$127k.
The focus on drilling and exploration, along with the completion of environmental assessments and heritage surveys, positions Future Metals for potential new discoveries and project advancements. The financial grants and prudent financial management indicate a strong strategic approach, which could positively impact investor confidence and the company's stock price.
Investor Reaction:
Investors and analysts have shown interest in the company's strategic focus on exploration and financial management. The awarded grants and shareholder approval for the Options Offer are seen as positive steps towards future growth and stability.
Conclusion:
Investors should keep an eye on the upcoming drilling activities and the company's progress in project assessments. Future Metals' strategic initiatives and financial management practices are key factors to watch for potential long-term growth and investment opportunities.