Altona Rare Earths plc said it hoped to start its first exploration work by the end of September in Mozambique.
FINANCE
In its audited final results for the year ended 30 June 2021, the company also announced that expenditure totalled £733,000 (FY20: £225,985), reflecting Altona’s new strategy of investments into rare earths projects in Africa as well as corporate costs.
Net cash flow was £502,000 as some creditors were paid in shares rather than cash.
Altona’s current liabilities decreased to £321,000 (FY20: £524,000) and included a trade creditor balance of £90,000 and an accruals balance of £169,000.
A Government Bounce Back Loan of £25,000 was arranged on 17 July 2020 and will be repaid according to the standard terms, from 1 August 2021.
The net cash inflow from financing activities of £964,000 related to the raising of capital through additional share issues, a decrease in the company’s bank overdraft and repayment of directors’ loans of £25,000.
Altona had cash in the bank of £318,647 as at 31 July 2021.
PROJECTS
The company £1.1 million through four placings and completed its first rare earths acquisition at the Monte Muambe project.
Altona added it now had a highly experienced board and was also entering the final stages of London Stock Exchange Standard listing process.
The company is also investigating three further rare earths projects in Africa and is expected to complete the transactions by the end of the year.
Chief executive Christian Taylor-Wilkinson said the projects would help mitigate shareholder risk and increase the company’s chances of entering into rare earths production.
“At this early stage in the company’s strategy, it is impossible to decide whether successful projects will be taken into production by Altona, or whether the company will look to find a buyer or partner to take on this hugely costly process of mining production.
“The focus for the foreseeable future, therefore, is to explore each asset to establish the mineralisation and value of the rare earths.”
OUTLOOK
Altona said it was “excellently positioned” to take advantage of the rare earths sector which is among the fastest growing mining industries through Monte Muambe and the company’s future acquisitions.