Tombador Iron Limited - June 2024 Quarterly Activities Report
TOMBADOR IRON LIMITED (TI1) Share Update July 2024 Wednesday 31st
Tombador Iron Limited Reports Quarterly Financial and Operational Update
Tombador Iron Limited (ASX: TI1) has released its quarterly activities report for June 2024, highlighting its financial performance and ongoing efforts to identify new assets for acquisition.
Instant Summary:
- Cash increase of AUD$412K in the quarter.
- Total cash holdings of AUD$10.84m as of 30 June 2024.
- Royalty payments of AUD$214k received from the Tombador Iron Brazil Project.
- Focus on due diligence and assessment of potential new projects.
Financial Overview
Tombador Iron Limited reported a cash increase of AUD$412K for the June 2024 quarter, bringing its total cash holdings to AUD$10.84m as of 30 June 2024. This increase was primarily driven by proceeds from the sale of the Tombador Iron Project and royalty income from iron ore sales.
The company received AUD$503k from the sale of the Tombador Iron Project and an additional AUD$214k in royalty payments under the sales agreement. Operating activities for the quarter included AUD$214k of royalty income from iron ore sales of direct ship ores.
Operational Focus
During the quarter, Tombador Iron Limited focused on evaluating new projects for potential acquisition. The company incurred AUD$107k on due diligence activities and AUD$140k on technical and corporate consulting costs. Corporate costs for the quarter included a AUD$349k credit relating to the discontinued Brazil entity, AUD$92k for office and administrative expenses, and AUD$215k in board and staffing costs, which were higher than the previous quarter due to the timing of invoice receipts.
Company Status
Tombador Iron Limited is currently in voluntary suspension following the sale of its main undertaking, the Tombador Iron Project in Brazil. The company is actively conducting due diligence on new projects as it assesses its options for relisting. Maintaining cash levels remains a priority while potential new assets are identified.
Payments to Related Parties
In accordance with ASX Listing Rule 5.3.5, Tombador Iron Limited reported payments of AUD$223k to related parties or their associates during the quarter. These payments included AUD$148k for director fees, AUD$64k for consulting fees, and AUD$11k for office rent.
The financial stability demonstrated by the cash increase and royalty payments is a positive sign for Tombador Iron Limited. However, the company's focus on identifying new assets and its current voluntary suspension may lead to uncertainty among investors. The successful acquisition of a new project could significantly impact the company's stock positively.
Investor Reaction:
Analysts are likely to have mixed reactions. While the financial stability is reassuring, the uncertainty surrounding the acquisition of new assets and the company's voluntary suspension may cause some concern. Investors will be closely monitoring any announcements regarding new projects.
Conclusion:
Investors should keep a close eye on Tombador Iron Limited's progress in identifying and acquiring new assets. The company's financial stability is a positive sign, but the uncertainty surrounding its future projects may impact investor sentiment. Staying informed on upcoming announcements will be crucial for making informed investment decisions.