Half Year Report

RNS Number : 0433E

Future Metals NL

08 March 2022

 

8 March 2022

Future Metals NL

Half Year Report for the Six Months Ended 31 December 2021

The Board of Future Metals NL (ASX/AIM: FME) ("FME", "Future Metals" or the "Company") is pleased to announce the Company's unaudited consolidated interim results for the 6 months to 31 December 2021 .

Please see below extracts from the Company's Half Year Report for the period ended 31 December 2021, being the:

-  Directors' Report

-  Consolidated Statement of Profit or Loss and Other Comprehensive Income

-  Consolidated Statement of Financial Position

-  Consolidated Statement of Changes in Equity

-  Consolidated Statement of Cash Flows

A copy of the full Half Year Report is available on the Company's website - www.future-metals.com.au

For further information please visit www.future-metals.com.au or contact :

Future Metals NL	[phone]
Jardee Kininmonth	[e-mail]
Strand Hanson Limited (Nominated Adviser)	[phone]
James Harris
W H Ireland Limited (UK Broker) Harry Ansell/Katy Mitchell	[phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

Directors' Report

The Directors present their report for Future Metals NL ("Future Metals" or the "Company") and its subsidiaries (together the "Group") for the half-year ended 31 December 2021.

DIRECTORS

The persons who were directors of Future Metals during the half-year and up to the date of this report (unless stated otherwise) are:

· Justin Tremain - Non-Executive Chairman (appointed 31 January 2022), Non-Executive Director (appointed 11 June 2021)

· Aaron Bertolatti - Finance Director (appointed 4 June 2018)

· Allan Mulligan - Non-Executive Director (appointed 11 June 2021)

· Robert Mosig - Independent Non-Executive Director (appointed 11 June 2021)

· Elizabeth Henson - Independent Non-Executive Director (appointed 21 October 2021)

· Greg Bandy - Executive Chairman (appointed 1 August 2010, resigned 31 January 2022)

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities of the Company during the period were to:

· Carry out exploration on the Company's 100% owned Panton PGM project in the Kimberley region of Western Australia ("Panton Project");

· Evaluate results received from drilling carried out at the Panton Project during the period;

· Progress metallurgical test work programs on drill hole samples from the Panton Project; and

· Carry out detailed review and logging of all information associated with the Panton Project from prior owners.

REVIEW OF OPERATIONS

Future Metals is an active Australian Platinum Group Metals ("PGM") focussed explorer pursuing the development of its 100% owned Panton project in the Kimberley region of Western Australia (the "Panton Project"). The Panton Project has had significant exploration and metallurgical work completed on it since 2000. It is host to a JORC Mineral Resource Estimate ("MRE") of 14.32Mt @ 5.20g/t for 2.4Moz PGM and Gold. The Company's focus is to undertake sufficient drilling to allow for the remodeling of the pre-existing MRE to establish a shallow, bulk PGM and nickel resource estimate, continuing near surface and at depth, other exploration activities and progressing the understanding of metallurgy in the context of pursuing a bulk mineralization development strategy. These activities will underpin studies to determine the development path for the Panton Project .

Panton PGM Project

The 100% owned Panton PGM project is located 60 kilometres north of the town of Halls Creek in the eastern Kimberly region of Western Australia, a tier one mining jurisdiction. The project is located on three granted mining licences and situated just 1 kilometre off the Great North Highway which accesses the Port of Wyndham.

The Panton PGM Project has a JORC Mineral Resource estimate of 14.32Mt @ 4.89g/t PGM, 0.31g/t Au and 0.27% Ni.

The Panton mineralisation occurs within a layered, differentiated mafic-ultramafic intrusion referred to as the Panton intrusive which is a 10km long and 3km wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted within two stratiform chromite reefs, the Upper and Middle reefs, within the ultramafic sequence.

The Company completed a 6,000m drilling programme at the Panton Project during the half year to test the lateral extent of PGM and nickel mineralisation at the Panton deposit. This followed an extensive review of the historical drill hole assay data and determined that significant mineralisation potential existed outside the +2 g/t PGE grade envelope used to model the existing MRE. As part of its review, the Company recognised that historically there was often no sampling of drill core outside the high-grade chromitite reef and/or drilling did not extend beyond the upper and middle chromitite reefs through to the lower chromitite reefs. Following these findings, the Company modified its initial drilling programme to test the lateral extent of the near-surface mineralisation at Panton. The Company completed 19 new exploration holes, and recovered diamond drill core from 33 holes drilled historically by Platinum Australia Limited, for a total of 52 holes cut and sampled for assaying, to support an updated MRE. Additionally, the Company completed eight metallurgical holes to provide samples to be used for flotation and physical separation test work programmes. Results obtained to date from the historical review, metallurgical drilling and exploration drilling are set out below.

Historical drill results reported at 0.5g/t PGM3E cut-off grade (maximum 4m dilution) include:

o  74m @ 1.32g/t PGM(3E) & 0.20% Ni (1.71g/t PdEq) from 111m (PS264) 

o  45.5m @ 1.38g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 80.5m (PS177) 

o  45.5m @ 1.07g/t PGM(3E) & 0.17% Ni (1.46g/t PdEq) from 51m (PS080) 

o  33m @ 3.11g/t PGM(3E) & 0.23% Ni (3.36g/t PdEq) from 69m (PS050-D1) 

o  43.5m @ 1.22g/t PGM(3E) & 0.21% Ni (1.60g/t PdEq) from115.4m (PS136) 

o  40.02m @ 1.42g/t PGM(3E) & 0.20% Ni (1.82g/t PdEq) from 48m (PS075) 

o  28.5m @ 2.62g/t PGM(3E) & 0.21% Ni (2.93g/t PdEq) from 21m (PS069) 

o  46m @ 1.15g/t PGM(3E) & 0.16% Ni (1.49g/t PdEq) from 18.5m (PS175) 

o  26.1m @ 2.56g/t PGM(3E) & 0.21% Ni (2.87g/t PdEq) from 14.5m (PS067) 

o  41.5m @ 1.23g/t PGM(3E) & 0.18% Ni (1.61g/t PdEq) from 29.5m (PS209) 

o  35.85m @ 1.55g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 138.5m (PS028) 

o  35m @ 1.21g/t PGM(3E) & 0.16% Ni (1.50g/t PdEq) from 22m (PS109) 

o  26m @ 2.13g/t PGM(3E) & 0.21% Ni (2.49g/t PdEq) from 19m (PS068) 

o  20.05m @ 1.76g/t PGM(3E) & 0.18% Ni (2.09g/t PdEq) from 1.8m (PS081) 

o  25m @ 2.05g/t PGM(3E) & 0.20% Ni (2.39g/t PdEq) from 26m (PS060) 

o  37.5m @ 1.58g/t PGM(3E) & 0.20% Ni (1.96g/t PdEq) from 43m (PS107) 

o  35.5m @ 1.19g/t PGM(3E) & 0.20% Ni (1.61g/t PdEq) from 38m (PS106) 

o  26m @ 1.15g/t PGM(3E) & 0.17% Ni (1.50g/t PdEq) from 46m (PS086) 

o  43.55m @ 1.20g/t PGM(3E) & 0.20% Ni (1.60g/t PdEq) from 146.45m (PS084) 

o  45m @ 0.87g/t PGM(3E) & 0.17% Ni (1.29g/t PdEq) from 30m (PS079) 

Assay results for the eight metallurgical holes drilled by the Company included:

o  20.8m @ 5.34g/t PGM (3E) from 89.3m (PS388) 

§ including 10.1m @ 9.00g/t PGM (3E) from 92.5m 

o  14.8m @ 3.88g/t PGM (3E) from 38.4m (PS384) 

§ including 7.8m @ 6.46g/t PGM (3E) from 39.4m 

o  11m @ 3.94g/t PGM (3E) from 100m (PS389) 

§ including 4.35m @ 5.72g/t PGM (3E) from 103m 

o  8m @ 1.98g/t PGM (3E) from 25m (PS382) 

§ including 2m @ 4.86g/t PGM (3E) from 25.5m

o  8.4m @ 4.89g/t PGM(3E) (4.90g/t PdEq) from 32.6m (PS383) 

o  12.6m @ 2.58g/t PGM(3E) (2.81g/t PdEq) from 54.4m (PS385) 

§ including 4.6m @ 5.42g/t PGM(3E) (5.34g/t PdEq) from 54.4m 

o  13m @ 1.03g/t PGM(3E) (1.30g/t PdEq) from 43m (PS386) 

Subsequent to 31 December 2021, and as announced on 17 February 2022, assay results were returned for 3 of the 19 exploration holes drilled in the half year to 31 December 2021 which included:

o  18.27m @ 1.95g/t PdEq (1.58 g/t PGM3E & 0.20% Ni) from 74m (PS394)

o  16m @ 1.56g/t PdEq (1.17 g/t PGM3E & 0.19% Ni) from 23m (PS395)

o  2.6m @ 2.80g/t PdEq (2.46 g/t PGM3E & 0.23% Ni) from 8m (PS393)

o  19.2m @ 1.50g/t PdEq (1.09 g/t PGM3E & 0.19% Ni) from 34m (PS393)

o  30m @ 1.19g/t PdEq (0.72 g/t PGM3E & 0.21% Ni) from 89m (PS393) 

Subsequent to 31 December 2021, and as announced on 8 March 2022, assay results were received for a further two resource definition holes as follows:

o  Drill hole PS400 returned an unconstrained bulk intersection of 140.8m @ 1.07g/t PdEq3 from 28m down hole including a broad zone of sulphide mineralisation and intercepts (at a 0.5g/t PGM(3E) cut-off, maximum 4m internal dilution) of:

o 39.48m @ 1.20 g/t PdEq3 (0.81 g/t PGM3E2 & 0.17% Ni) from 37.1m

o 25.66m @ 1.17 g/t PdEq3 (0.74 g/t PGM3E2 & 0.19% Ni) from 104.34m

o 12.2m @ 1.15g/t PdEq3 (0.66 g/t PGM3E2 & 0.18% Ni) from 135.4m

o  Drill hole PS398 also returned broad widths of shallow PGM and nickel mineralisation, including:

o 20.6m @ 2.14g/t PdEq3 (1.79 g/t PGM3E2 & 0.20% Ni) from 39m

o 11m @ 1.12 g/t PdEq3 (0.72 g/t PGM3E2 & 0.15% Ni) from 64m

o 30.6m @ 1.21 g/t PdEq3 (0.75 g/t PGM3E2 & 0.21% Ni) from 83m

Metallurgical Review and Test Work Programme

During the half year period, the Company's metallurgy consultant, Dr Evan Kirby of Metallurgical Management Services Pty Ltd ("MMS"), completed a review of historical work undertaken at Panton by Platinum Australia Limited and Panoramic Resources Limited, to inform the planning of a new test work programme. Under the recommendation and guidance of Dr Kirby, in conjunction with the Company, high-grade and low-grade composite samples were formed from samples from the eight metallurgical drill holes which are to be utilised by ALS Laboratories for the new metallurgical test work programme. The focus of the new test work programme is to understand how lower grade material will perform under previously successful flotation conditions and optimise such conditions to improve selectivity and recovery.

Mineral Resources

The Panton PGM Project has a JORC Resource estimate of 14.32Mt @ 5.20g/t for 2.4Moz PGM + Gold (refer Table One).

http://www.rns-pdf.londonstockexchange.com/rns/0433E_1-2022-3-8.pdf

Table One | Panton JORC 2012 Mineral Resource Estimate

Corporate

Re-Admission to AIM and Key Appointments

The Company's Re-Admission to trading on AIM, a market operated by London Stock Exchange plc ("AIM") occurred on 21 October 2021. In conjunction with Re-Admission, the Company appointed a highly credentialed UK-based director to augment the Company's existing Board of Directors, Ms Elizabeth Henson. Ms Henson was formerly a senior international private tax partner of PricewaterhouseCoopers ("PwC") in London, having founded and led PwC's International Wealth business.  Future Metals also engaged WH Ireland Limited ("WH Ireland") as its UK Broker from Re-Admission. WH Ireland are assisting with broking services, research, market making and investor relations in the UK.

Adviser Options

On 3 November 2021, the Company issued its nominated adviser, Strand Hanson Limited, 7,000,000 options, exercisable at a share price of A$0.18 and expiring on 3 November 2024.

Performance Rights

In accordance with the terms of the Company's Performance Rights Plan and as approved by shareholders at the Company's general meeting held on 4 June 2021, 7,333,331 Class A Performance Rights, 7,333,334 Class B Performance Rights and 7,333,335 Class C Performance Rights were issued on 13 June 2021.

7,333,331 Class A Performance Rights and 7,333,334 Class B Performance Rights subsequently vested having met the applicable vesting criteria.  The Class C Performance Rights will vest when the Volume Weighted Average Price over a period of 20 consecutive trading days on which trades in the Company's shares are recorded on ASX is at least A$0.25.

On 7 December 2021, Non-Executive Director Elizabeth Henson was issued a total of 2,000,000 Performance Rights. Such Performance Rights are to be voluntarily escrowed until 22 June 2023 and will expire on or before 5:00 p.m. (WST) of 11 June 2024.  The Performance Rights will vest upon:

a)  the Volume Weighted Average Price over a period of 20 consecutive trading days on which trades in the Company's shares are recorded on ASX (20-day VWAP) being at least A$0.30; and

b)  Ms Henson remaining a Non-Executive Director for a continuous period of 12 months.

No Performance Rights were converted or cancelled during the half-year ended 31 December 2021.

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

On 15 January 2022, 840,001 unlisted options over fully paid ordinary shares exercisable at A$0.357   lapsed unexercised.

On 31 January 2022, Mr Justin Tremain assumed the role of Non-Executive Chair following the resignation of Mr Greg Bandy who retired from the Board after more than 10 years of service.

On 31 January 2022, the Company announced the appointments of Mr Jardee Kininmonth as Chief Executive Officer ("CEO") and Mr Brian Talbot as Operational & Technical Lead Adviser.  Both Mr Kininmonth and Mr Talbot joined Future Metals following successful senior management positions with Galaxy Resources Limited where Mr Kininmonth was Corporate Development Manager and Mr Talbot was Head of Australian Operations.

2,666,666 Class A Performance Rights and 2,666,667 Class B Performance Rights were converted into fully paid ordinary shares on 7 February 2022.

On 7 February 2022, the Company issued a total of 3,900,000 Performance Rights to the CEO and the Operational & Technical Lead. The Performance Rights will expire at 5:00 p.m. (WST) on or before 31 January 2025.  The Performance Rights will vest as follows:

i.  1,300,000 vesting upon the completion of 12 months of continuous employment with Future Metals ("Tranche A");

ii.  Subject to the vesting of Tranche A, 1,300,000 vesting upon the 20-day volume weighted average market share price ('VWAP') exceeding A$0.30; and

iii.  Subject to the vesting of Tranche A, 1,300,000 vesting upon the Company announcing the completion of a Pre-Feasibility Study on the Panton PGM Project that results in the Board making a decision to undertake a Definitive Feasibility Study on the Panton PGM Project.

On 7 February 2022, the Company issued a total of 1,000,000 Performance Rights to its Exploration Manager. The Performance Rights will expire at 5:00 p.m. (WST) on or before 11 June 2024.  The Performance Rights will vest as follows:

i.  333,333 following 12 months of continuous employment;

ii.  333,333 upon delivery of an updated JORC Resource; and

iii.  333,334 upon the 20-day VWAP exceeding A$0.25.

Further to the appointment of Barclay Wells Ltd to assist in the marketing of the Company and to introduce potential investors on a non-exclusive basis, the Company issued the following options on 7 February 2022:

i.  3,000,000 exercisable at A$0.20 per share once the 20-day VWAP exceeds A$0.30;

ii.  3,000,000 exercisable at A$0.20 per share once the 20-day VWAP exceeds A$0.40; and

iii.  3,000,000 exercisable at A$0.20 per share once the 20-day VWAP exceeds A$0.50.

All of the options listed above have an expiry date of 22 June 2023.

There have been no other significant events subsequent to the end of the half-year period to the date of this report which significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, to provide the Directors of the Company with an Independence Declaration in relation to the review of the half-year financial report.

This Independence Declaration forms part of this Directors' report for the half-year ended 31 December 2021.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001.

Signed on behalf of the Board in accordance with a resolution of the Directors.

Justin Tremain

Non-Executive Chairman

Perth, Western Australia

8 March 2022

Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the half-year ended 31 December 2021

Continuing Operations
Interest received		3,246	261
Employee and director benefits expense		(180,109)	-
Professional and Consultants		(272,562)	-
ASX, AIM and share registry fees	3, 10 (c)	(1,776,014)	-
Travel expenditure		(5,803)	-
Share based payment expense	10 (b)	(53,299)	-
Amortisation/depreciation expense		(34,104)	-
Unrealised Foreign exchange gain/(loss)		1,813	-
Realised Foreign exchange gain/(loss)		(446)	-
Other expenses		(120,304)	(11)
(Loss)/profit before income tax		(2,437,582)	250
Income tax expense		-	-
(Loss)/profit after Income Tax		(2,437,582)	250
Other comprehensive loss
Items that may be reclassified to profit or loss
Other comprehensive income/(loss)		-	-
Other comprehensive income/(loss) for the period net of tax		-	-
Total comprehensive (loss)/income for the period		(2,437,582)	250
(Loss)/profit for the period attributable to :
Members of the parent entity		(2,437,582)	250
Non-controlling interests		-	-
		(2,437,582)	250
Total comprehensive (loss)/income for the period attributable to :
Members of the parent entity		(2,437,582)	250
Non-controlling interests		-	-
		(2,437,582)	250
(Loss)/profit per share
Basic and diluted (loss)/profit per share (cents)		(0.70)	0.003

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial Position

as at 31 December 2021

Current Assets
Cash and cash equivalents		5,601,570	9,555,684
Trade and other receivables		125,515	175,840
Other assets		20,975	-
Total Current Assets		5,748,060	9,731,524
Non-Current Assets
Right of Use Assets		53,421	83,101
Deferred Exploration & Evaluation Expenditure	4	19,148,468	17,020,143
Property, Plant and Equipment		39,817	-
Total Non-Current Assets		19,241,706	17,103,244
Total Assets		24,989,766	26,834,768
Current Liabilities
Trade and other payables	5	1,793,854	2,029,502
Lease Liabilities		49,076	72,404
Total Current Liabilities		1,842,930	2,101,906
Non-Current Liabilities
Lease Liabilities		-	12,421
Total Non-Current Liabilities		-	12,421
Total Liabilities		1,842,930	2,114,327
Net Assets		23,146,836	24,720,441
Equity
Issued capital	6	29,238,564	29,238,564
Reserves	7	2,653,310	1,789,333
Accumulated losses	8	(8,745,038)	(6,307,456)
Total Equity		23,146,836	24,720,441

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Consolidated Statement of Changes in Equity  

for the half-year ended 31 December 2021

Balance at 12 November 2020	-	-	-	-	-	-
Total comprehensive loss for the period
Loss for the year	-	250	-	250	-	250
Other Comprehensive income/(loss)	-	-	-	-	-	-
Total comprehensive income for the period	-	250	-	250	-	250
Transactions with owners in their capacity as owners
Non-controlling interest recognised on acquisition	-	-	-	-	3,000,000	3,000,000
Shares issued during the period	12,500,025	-	-	12,500,025	-	12,500,275
Balance at 31 December 2020	12,500,025	250	-	12,500,275	3,000,000	15,500,275

Balance at 1 July 2021	29,238,564	(6,307,456)	1,789,333	24,720,441	-	24,720,441
Total comprehensive loss for the period
Loss for the period	-	(2,437,582)	-	(2,437,582)	-	(2,437,582)
Other Comprehensive loss	-	-	-	-	-	-
Total comprehensive loss for the period	-	(2,437,582)	-	(2,437,582)	-	(2,437,582)
Transactions with owners in their capacity as owners
Share based payment (note 10 (a))	-	-	863,977	863,977	-	863,977
Balance at 31 December 2021	29,238,564	(8,745,038)	2,653,310	23,146,836	-	23,146,836

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Consolidated Statement of Cash Flows  

for the half-year ended 31 December 2021

Cash flows from operating activities
Payments to suppliers and employees		(1,798,447)	(11)
Interest received		3,246	261
Net cash (used in)/provided by operating activities		(1,795,201)	250
Cash flows from investing activities
Payments for exploration and evaluation		(2,114,672)	-
Acquisition of property, plant and equipment		(44,241)	-
Net cash used in investing activities		(2,158,913)	-
Cash flows from financing activities
Proceeds from issue of shares		-	700,025
Net cash provided by financing activities		-	700,025
Net (decrease)/increase in cash and cash equivalents		(3,954,114)	700,275
Cash and cash equivalents at beginning of period		9,555,684	-
Cash and cash equivalents at the end of the period		5,601,570	700,275

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

 

END

 

 

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