AR1 - Austral Resources Australia

[System]

Austral Resources Australia Ltd is an Australian copper focussed company that owns an operating copper oxide ore processing facility, the nearby Anthill Copper Project and highly prospective exploration tenure holdings.

Austral is the holder of the following key suite of assets, located 120km north of Mount Isa, northwest Queensland:

(a) The Mt Kelly heap leach and Solvent Extract & Electrowinning (SXEW) processing facility that produces LME Grade A copper cathode (99.99% copper metal);

(b) A 150 person camp and facilities for staff and contractors;

(c) The Anthill Project, an undeveloped, fully permitted, open pittable mine with a JORC Ore reserve of 5.06Mt @0.94% Cu or 47,500 contained tonnes of copper in oxide ore. Anthill is 45km by road from Austral’s processing facility; and

(d) A highly prospective 1,340km2 exploration tenure portfolio with a global Mineral Resource Estimate of 60Mt @0.70% Cu, or 423,000t of contained copper.

It is anticipated that AR1 will list on the ASX during November 2021.

Austral Resources - Home

Austral Resources is located in Queensland Gulf country, and produces LME Grade A copper cathode from its open cut mine. The company is listed on the Australian Securities Exchange (ASX code AR1).

www.australres.com

 

[Dona Ferentes]

Listing date	03 November 2021 ; 12:00 PM AEDT ##
Contact details	Austral Resources Ph: +61 7 3520 2500
Principal Activities	Mineral exploration and production
GICS industry group	TBA
Issue Price	AUD 0.20
Issue Type	Ordinary Fully Paid Shares
Security code	AR1
Capital to be Raised	$30,000,000
Expected offer close date	15 October 2021
Underwriter	Not underwritten. Peloton Capital Pty Ltd (Lead Manager)

 

[Dona Ferentes]

IPO has proceeded on time, but is struggling. Opened at 15.5c, been as high as 17.5c and as low as 15c

always messy when the lawyers get involved

Response to Media Speculation

AR1 notes media speculation overnight regarding purported threatened legal action by Nathan Tinkler involving AR1, its executive director, Mr Dan Jauncey and shareholding interests associated with Mr Jauncey. The media speculates that NT is seeking to “reclaim” a shareholding interest in AR1 from the Jauncey Interests. The article also indicates that AR1 may be a party to this purported legal action.

In response to that speculation, the Company confirms that it and the Jauncey interests have received correspondence from the solicitors acting for NT threatening to institute legal action (NT Correspondence). On receipt of the NT Correspondence, AR1 and the Jauncey Interests have responded, through their solicitors, refuting all claims made in the NT Correspondence. ...

 

[Dona Ferentes]

Quarterly : Highlights:
• Significant production milestone achieved with first copper ore deliveries from Anthill Mine in March
• Austral on track to produce 10,000tpa of copper cathodes from mid 2022
• Six drill ready copper oxide exploration targets prioritised from geophysics and field work
• 348 tonnes of cathode sold for $4.83m during the quarter with copper production significantly increasing from May onward due to commencing Anthill ore processing
• Austral finalised a cash advance facility of US15M with Glencore to aggressively accelerate exploration and provide the company with a strong balance sheet
• Exploration team focussed on delivering drill ready targets with a clear objective to expand Austral’s current resource inventory (420,000t of contained copper). $10m budgeted to drill 30,000m over the next 12 months

Copper production will increase significantly from May, and to put this into perspective, production from January to April this year was 540t of cathode. Planned cathode production from May to December is a significant 9,000t and then increasing to 12,000t for 2023.

Corporate
• Cash balance of $23.6m strongly positioning the Company for 2022
• Exploration Joint Venture discussions underway with multiple parties for a portion of Austral’s 2,100km2 of highly prospective exploration tenure
• Glencore offtake offers a premium to spot copper price for LME grade A cathode

..... SP is back up to 20c; market cap around $80 million. No further mention of Nov legal stoush.

 

[Dona Ferentes]

Quarterly : Highlights:
..... SP is back up to 20c; market cap around $80 million. No further mention of Nov legal stoush.

and as high as 24c as the nimble reassess its prospects. ...

(which kind of blows my chances for next month's tipping comp when it puts on 30+% in the two days before April's end )

 

[Dona Ferentes]

and as high as 24c as the nimble reassess its prospects. ...
(which kind of blows my chances for next month's tipping comp when it puts on 30+% in the two days before April's end )

but it retreated Friday arvo to close at 20.5c

Which has given a nice base as today, possibly following a presentation at a resources conference on Wed, it's pushed 19% to 25c. At time of posting, but will likely retreat at the 4:10 close out, lock it in Eddy, settlement

 

[Dona Ferentes]

Welcome ...to the inaugural Annual General Meeting of copper producer Austral Resources Australia Ltd. The company has made great progress on several fronts:

• Ore is being mined and transported from Anthill and ready to be loaded to the leach pads for processing.
• The exploration team have completed a large geophysics and geochemistry review and we expect to start drilling our high priority targets in the weeks to come.
• We raised USD$15m in a presale off-take agreement with Glencore which contributes significantly to our cashflows allowing us to expand our exploration program to $10m.
• From a technical perspective we are engaging with a metallurgical group to test a heap leach process for sulphides, which if it proves effective, will have a major positive impact on the company. .....
.....

Finally, ... we look forward to our production achieving that significant milestone of 1,000 tonnes of copper cathode per month soon

 

[Dona Ferentes]

Mmmmm,

trading halt is requested pending the release of an announcement in relation to a response to an ASX Price and Volume Query;

since the beginning of the month:

AR1

0.205​

up 0.155​

75.61%​

wonder if it will hold? At least it's not a Cap Raising. Resume on the market on Monday 23/05

 

[Dona Ferentes]

Response is back (a day early) and punters seem happy - AR1 pushed to 40c on resumption, a 10% lift

1. No. AR1 is not aware of any information concerning it, that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.

2. a) Not applicable; b) Not Applicable; c) Not Applicable

3. Austral Resources Australia Ltd continues to deliver on its Initial Public Offering objectives and milestones through:
- The commencement of mining at Anthill in January this year and removal of overburden.
- The increase in ore production at Anthill.
- Securing its cash position via an offtake and prepayment agreement with Glencore.
- Commencement of ore shipments from the Anthill Mine to the Mt Kelly plant.
- Imminent commencement of heap leach stacking and projected increase in copper cathode production from approx. 100 tonnes per month to 1,000+ tonnes per month.
- Continued and ongoing discussions with multiple potential joint venture partners.

Austral is also aware of the Stockhead article “One copper stock to watch as Robert Friedland’s ‘supply cliff’ approaches” and specifically that the Company CEO, Mr Steve Tambanis “hinted that an exploration deal with an industry gorilla was not far off”.

The article and statements within in it broadly reflect AR1’s disclosures on this point. However the Board of AR1 is of the view that the terminology used is uncertain and lacks specificity as to what constitutes “an industry gorilla” and the timing of when such “exploration deal” will be consummated.

AR1 seeks to address and clarify statements made in this article:

Since listing on ASX, the Company has been approached by multiple parties seeking to conduct earn-in and joint venture arrangements over its current tenement suite. AR1 has consistently advised the market that it is in discussion with potential joint venture partners; more recently in its last Quarterly Report and RIU Conference Presentation.

When selecting potential joint venture partners, the Austral Board adopts a disciplined assessment criteria in ensuring any such arrangement delivers value to shareholders. Key components in such assessment must include their respective exploration expertise, reputation and financial standing.

Consequently, AR1 is reviewing a number of joint venture opportunities and participants that the Board considers meet the key elements of that criteria (i.e. significant participants in the mining and exploration industry).

AR1 is currently negotiating an indicative non-binding earn-in and joint venture transaction with a significant participant in the mining industry that meets that criteria. The transaction term sheet is advanced but remains subject to final negotiation and execution. Once executed, the parties intend to formalise the transaction by negotiating and entering into binding documentation.

AR1 intends to keep the market updated in accordance with its continuous disclosure obligations.

 

[Dona Ferentes]

Time for another ASX query?

Now 47c, up a further 20% today.

EDIT ... 48.5c

(ATH ATM)

 

[peter2]

A little joy on a cold day. 0.47 you say, might raise my exit stops from 0.35 to 0.40.
That would allow me to start another spec positions. Hmm.

Hard to keep my focus on the weekly chart instead of the booming daily chart.

 

[tech/a]

A really nice chart that is behaving as you'd expect for a strong stock and a longer timeframe.
Looks like the beginnings of a 5th wave though.

 

[Dona Ferentes]

I should've stuck with AR1 in the June comp....

Up another few percent, solid buying, closed above 60c. No news to date

 

[Dona Ferentes]

.... closed above 60c. No news to date

got to 65c but down today on the release of a Non Market Sensitive announcement, outlining plans. Now 57c.

.... following commencement of Anthill ore processing at its Mt Kelly heap leach SXEW plant. Austral expects to be producing 10,000tpa of copper cathode from mid-2022, enabling self-funding of exploration and development activities. The focus is on discovering additional oxide copper ore to augment Anthill oxide feed, increase the current sulphide resource base and to explore for large scale copper and base metal mineralisation within the large 2,100km2 of exploration tenure. Austral intends to fund exploration through a $10m per annum exploration budget over the next four years and by selective joint venturing of portions of its tenure holdings to enhance discovery potential.

Austral’s key objectives are to:
1. Extend Austral’s mine life beyond the current four years at Anthill by discovering additional oxide ore
2. Increase the current JORC Mineral Resource Estimate (MRE) of 420,000t of contained copper
3. Commercialise Austral’s sulphide resources (210,000t of contained copper)

The company has commenced activities on all three key objectives.

 

[Dona Ferentes]

No news to date

and now the gossip can stop?

Complementary Exploration Earn-in Agreements with Glencore’s Mount Isa Mines

Highlights:
• Austral and MIM have executed Non-binding Earn-in Agreement term sheets for:
(1) MIM to explore 330km2 of Austral EPMs (within JV Area) surrounding MIM’s Lady Loretta zinc, lead, silver Mine and Austral’s Lady Annie copper Mine, and;
(2) Austral to explore for copper oxide over MIM’s 116km2 neighbouring Russell Fault tenement (EPM26435)
• Austral retains the rights to copper oxide mineralisation within the Exploration Area and will also explore for copper oxides within MIM’s Russell Fault tenement, effectively adding 116km2 of highly prospective tenure
• MIM has a wealth of exploration experience and has developed innovative sulphide exploration techniques to discover new base and precious metals in Queensland’s Northwest Minerals Province
• Austral retains 100% rights to its Mt Kelly MLs, associated processing infrastructure and the remaining 1,800km2 of its highly prospective exploration tenure
• The Earn-in agreements are a value generating exploration play for both groups, utilising new geophysical data over the area that has both validated existing targets and generated new targets, some of which are drill ready. Drilling to commence as soon as practicable following completion of definitive documentation
• MIM to spend $6.3m expenditure within the Exploration Area over 4 years to earn-in to a 65% holding, with AR1 retaining a 35% interest. Austral to spend $2m expenditure within the Russell Fault over 4 years to earn up to a 65% interest

 

[Dona Ferentes]

...the Company’s CEO, Steve Tambanis, and the Company, have mutually decided to not renew their consulting contract that expires on 31 July 2022. Mr Tambanis joined the Company in July 2021 and has made a significant and valuable contribution to...

- padding out his CV?

 

[noirua]

Austral Resources (ASX:AR1) posts updated MRE for Lady Colleen, QLD

Austral Resources (ASX:AR1) has posted an updated mineral resource estimate for its Lady Colleen deposit in Queensland.

themarketherald.com.au

Austral Resources (AR1) has posted an updated mineral resource estimate for its Lady Colleen deposit in Queensland.

The deposit is within the company’s Mt Kelly operation and was originally defined by CST Minerals and last estimated and reported in 2013.

 

[Dona Ferentes]

well now, ho hum.

 

[Dona Ferentes]

just looking at AR1 as it has moved up 3c to 21c on recent announcement .

Austral hits steady state production and fast tracks Lady Colleen scoping study supported by two funding initiatives
Key highlights:
• Austral Resources Australia Ltd has secured funding as it hits steady state production at the Mt Kelly plant and continues to fast track the Company’s Lady Colleen Scoping study.
• The first initiative is a strategic alliance and payment restructuring agreement with Thiess, the global mining services provider working at the Company’s Anthill Mine as
detailed:
➢ Austral will pay Thiess A$10m of outstanding amounts owed in December 2022, with further deferred payments to be progressively met
➢ Thiess will receive A$5 million in Austral shares at A$0.20 each
➢ Thiess currently remains 2 million tonnes ahead of the mining schedule,
safeguarding production during the wet season
➢ Austral’s production profile is moving to 1,000 tonne per month at approximately A$12,000 per tonne (spot price of US$3.78lb on 20 December 2022) generating cashflow of approximately A$12 million per month.
• The second initiative is a A$12.8 million finance facility provided by Secover, a private company controlled by the Harvey Family Office, who holds approximately 2.9% equity stake in Austral.
• The Secover facility is secured by two major Austral shareholders, including founder Dan Jauncey, who have provided security for the facility.

I often worry about these arrangements , wondering what's in it for da liddle guy. Cap and collar vise grip.

 

[Dona Ferentes]

I was going to tip this for Jan comp, but it started moving mid Dec ... AR1 has gone from 15c to 30c in the last few weeks.

December 2022 Quarterly Activities Report just released
Austral doubles revenue whilst consistently reducing operational costs
Highlights:
• December 2022 Quarter sees Austral operationally cash positive.
• Total revenue increased by 103% compared to the previous quarter:
o Copper sales of 2,393t and sales revenue of $30.1m
o Mining, processing, and maintenance costs - $24.8m
o Plant capital expenditure - $1.2m
o Exploration expenditure - $1.1m
• Production for December quarter increased by 92% from last quarter, with production hitting a nameplate capacity of 33.3 tonnes per day in December. Production levels at Anthill through the remainder of CY23 are expected at or near 33.5 tonnes per day.
• Austral achieved consistent cost reduction throughout the quarter whilst mining rates continued to be 10% ahead of schedule.
• Lady Colleen grade increased by 200% which provided the Company with the confidence to accelerate and support its scoping study with results expected in Q1 2023.
• Austral secured a $12.8M finance facility from Secover, a private company controlled by the Harvey Family Office, which provided the Company with the financial resources it needed to continue its growth and development.