NeuRizer Ltd Quarterly Activities Report - June 2024
NEURIZER LTD (NRZ) Share Update July 2024 Monday 29th
NeuRizer Ltd Announces Key Developments in Quarterly Activities Report
NeuRizer Ltd (ASX: NRZ) has released its Quarterly Activities Report for the period ending 30 June 2024, highlighting key corporate developments, new partnerships, and updates on ongoing projects.
Instant Summary:
- Sale of two residential properties raised approximately $242k.
- Appointment of Mr. Manyoo Han as Non-Executive Director.
- Exploration of Underground Coal Gasification (UCG) in India with Coal India Limited (CIL) and CMPDI.
- Commonwealth government’s decision to apply the ‘water trigger’ for NRUP Stage 1.
- Ongoing work on the Bankable Feasibility Study for NRUP Stage 2.
Corporate Update
NeuRizer Ltd has successfully sold two residential properties in Leigh Creek, raising approximately $242k. The company continues to offer three remaining surplus residential properties for sale. Additionally, NeuRizer released its Half Year Accounts for the period ending 31 December 2023 on 11 April 2024.
On 20 May 2024, NeuRizer announced the appointment of Mr. Manyoo Han as a Non-Executive Director, following the resignation of Mr. Sunghun Ryu. Both individuals represent DL E&C Co., Ltd, one of NeuRizer’s major shareholders.
Partnerships and Collaborations
In May 2024, senior executives from Coal India Limited (CIL), the Central Mine Planning and Design Institute (CMPDI), and the Indian Ministry of Coal visited NeuRizer’s head office in Adelaide and the NeuRizer Urea Project (NRUP) site at Leigh Creek. The visit aimed to explore the implementation of Underground Coal Gasification (UCG) in Indian geo-mining conditions.
Subsequently, NeuRizer and CMPDI signed a Non-Disclosure Agreement to further these discussions. NeuRizer’s Chairman expressed optimism about the collaboration, noting India’s allocation of over AUD$1.5 billion for coal gasification and the goal to gasify 100 million tonnes of coal annually by 2030.
Project Updates
The Commonwealth government has decided to apply the ‘water trigger’ as an additional controlling provision for Stage 1 of the NeuRizer Urea Project (NRUP). This decision reconfirms the existing assessment approach and allows the project to move forward.
For Stage 2 of the NRUP, NeuRizer continues to work with DL on the Bankable Feasibility Study. The development contract will now be split into an engineering and procurement contract and a construction and commissioning contract. NeuRizer is working through the construction requirements and has engaged a quantity surveyor to optimize costs.
Financial Performance
NeuRizer’s Quarterly Cash Flow Report shows a net cash outflow of $1.284 million from operating activities. The company incurred $547k on exploration and evaluation activities during the quarter. As of 30 June 2024, NeuRizer’s cash and cash equivalents stood at $569k.
The developments reported by NeuRizer Ltd are likely to have a mixed impact on its stock. The sale of residential properties and the appointment of a new Non-Executive Director are positive steps. However, the company's financials indicate a need for further capital raises to fund ongoing operations. The partnership with CIL and CMPDI could open new opportunities in the Indian market, potentially boosting investor confidence.
Investor Reaction:
Analysts have noted the strategic importance of the partnership with CIL and CMPDI. Investor reactions are cautiously optimistic, with some expressing concerns over the company's current cash flow situation.
Conclusion:
Investors should keep an eye on NeuRizer’s ongoing projects and financial performance. The company's ability to secure additional funding and successfully execute its strategic initiatives will be crucial for its future growth. Subscribe to our newsletter for regular updates on NeuRizer Ltd and other stock market news.