ASX Release ASX Code
25 October 2016 CSE
QUARTERLY REPORT ON ACTIVITIES
July to September 2016
OverviewDuring the Quarter the Company continued with its plan to keep operating costs at a minimum, while holding its investment in Syrah Resources Limited (ASX: SYR) as Syrah continues towards development.
On 6 September 2016, the Company announced the resignation of Mr Tom Eadie as Non-Executive Chairman and Director of the Company, and announced the appointment of Mr Harry Hatch as a Non-Executive Director of the Company.
Harry is a substantial shareholder in the Company, holding 19.99% of the issued capital.
Copper Strike currently has no exploration interests.
Syrah ShareholdingCopper Strike owns 11 million shares in Syrah Resources Limited, which is a holding of 4.2%. The Company continues to be pleased with progress being made at Syrah in relation to its Balama Graphite Project. Copper Strike notes that Syrah completed a
$194 million capital raising via a placement in June 2016, along with a previous capital raising via an underwritten placement and rights issue in August 2015 raising $211 million. These raisings have allowed Syrah to progress immediately into construction of its mine, processing plant and associated infrastructure to ensure production is targeted for Q2 2017. In addition, the more recent raising will allow Syrah to accelerate its spherical graphite strategy in response to significant market demand.
Copper Strike strongly supports the Syrah strategy in relation to the development of the Balama Project and furthering studies in relation to its proposed spherical graphite processing facilities in the United States and Mozambique.
Copper Strike believes that the share price of Syrah has considerable upside now that the equity capital raising has been completed, construction has commenced and Syrah continues to release further details in relation to its dealings with its offtake partners and other stakeholders. As such the directors are of the view that it is in shareholders' best interests for the Company to continue to hold this investment to ensure that the
potential upside in relation to the development of the world class Balama Project is reflected within the Syrah share price.
The Company notes the announcement made by Syrah on 9 September 2016 in relation to construction progress at Balama being 42.6% complete and on schedule. In addition Syrah announced on 5 October 2016 the resignation of its Managing Director, Mr Tolga Kumova. Syrah noted in this announcement that Mr Kumova's resignation was part of a transition reflecting the evolving strategic direction of the Company and the key development activities it is currently undertaking.
AdministrationExpenditure for the Quarter was $138,000. As of 30 June 2016 Copper Strike had approximately $663,000 in the bank. Expenditure going forward is expected to be less than $100,000 per Quarter, excluding one off items.
Corporate Details Issued Capital 106,844,810 shares Share Price $0.32 (24 October 2016) Directors and ManagementMr Mark Hanlon - Non Executive Director Mr Brendan Jesser - Non Executive Director Mr Harry Hatch - Non Executive Director Ms Melanie Leydin - Company Secretary
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Appendix 5B+Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity | ||
COPPER STRIKE LIMITED | ||
ABN | Quarter ended ("current quarter") | |
16 108 398 983 | 30 September 2016 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (3 months) $A'000 | |
1. | Cash flows from operating activities | - | - |
1.1 | Receipts from customers | ||
1.2 | Payments for | - | - |
(a) exploration & evaluation | |||
(b) development | - | - | |
(c) production | - | - | |
(d) staff costs | - | - | |
(e) administration and corporate costs | (109) | (109) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 5 | 5 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Research and development refunds | - | - |
1.8 | Other (provide details if material) | - | - |
1.9 | Net cash from / (used in) operating activities | (104) | (104) |
-
Cash flows from investing activities
Payments to acquire:
property, plant and equipment - -
tenements (see item 10) - -
investments (34) (34)
other non-current assets - -
Cash flows from financing activities
Proceeds from issues of shares
Proceeds from issue of convertible notes
Proceeds from exercise of share options
Transaction costs related to issues of shares, convertible notes or options
Proceeds from borrowings
Repayment of borrowings
Transaction costs related to loans and borrowings
Dividends paid
Other (provide details if material)
Net increase / (decrease) in cash and cash equivalents for the period
Cash and cash equivalents at beginning of period
Net cash from / (used in) operating activities (item 1.9 above)
Net cash from / (used in) investing activities (item 2.6 above)
Net cash from / (used in) financing activities (item 3.10 above)
Effect of movement in exchange rates on cash held
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (3 months) $A'000 |
2.2 Proceeds from the disposal of: | - | - |
(a) property, plant and equipment | ||
(b) tenements (see item 10) | - | - |
(c) investments | - | - |
(d) other non-current assets | - | - |
2.3 Cash flows from loans to other entities | - | - |
2.4 Dividends received (see note 3) | - | - |
2.5 Other (provide details if material) | - | - |
2.6 Net cash from / (used in) investing | (34) | (34) |
activities |
3.10 Net cash from / (used in) financing activities | - - - - - - - - - | - - - - - - - - - |
- | - |
4.6 Cash and cash equivalents at end of period | 801 (104) (34) - - | 801 (104) (34) - - |
663 | 663 |
Copper Strike Limited published this content on 25 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 02 November 2016 02:27:06 UTC.
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