New Risk • Sep 27
New major risk - Revenue and earnings growth Earnings have declined by 0.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 0.6% per year over the past 5 years. Revenue is less than US$1m. Minor Risks Shareholders have been diluted in the past year (8.4% increase in shares outstanding). Market cap is less than US$100m (AU$126.4m market cap, or US$80.5m). 공시 • Sep 27
Essential Metals Limited, Annual General Meeting, Nov 27, 2023 Essential Metals Limited, Annual General Meeting, Nov 27, 2023, at 14:00 W. Australia Standard Time. New Risk • Sep 23
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Shareholders have been diluted in the past year (8.4% increase in shares outstanding). Market cap is less than US$100m (AU$129.1m market cap, or US$83.1m). New Risk • Sep 07
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Shareholders have been diluted in the past year (8.6% increase in shares outstanding). Market cap is less than US$100m (AU$108.9m market cap, or US$69.3m). Board Change • Sep 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Non-Executive Director Warren Hallam was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. 공시 • May 11
Essential Metals Limited Provides Update on Pioneer Dome Lithium Project Essential Metals Limited announced work has commenced on the Feasibility Study with the immediate focus on designing and implementing a comprehensive metallurgical testwork programme. Exploration: A drill programme is being planned to test several targets developed from the structural review study and field reconnaissance exploration completed in the March Quarter. Information on potential water sources for a Concentrator plant will also be gathered. Expressions of Interest for off-take and funding. Re-engagement has commenced with the parties who had shown interest in participating in the Expressions of Interest process covering spodumene concentrate off-take and the provision of funding for the project development. Corporate. TLEA Scheme: The Scheme of Arrangement (the Scheme), under which Tianqi Lithium Energy Australia Pty Ltd. (TLEA) proposed to acquire all the shares in Essential for $0.50 per share in cash (the Scheme Resolution), was not approved by Essential shareholders at the Scheme Meeting held on 20 April and the Scheme Implementation Agreement has been terminated. Mineral Resources Limited now holds 19.55% of the issued shares in Essential. In its March Quarterly, MinRes stated: "Essential's Pioneer Dome Lithium Project is approximately 100km from Mt Marion. MinRes' interest in Essential is consistent with the Company's focus on lithium opportunities in the Mt Marion region." This was reaffirmed during a recent meeting with MinRes management. The 450km2 Pioneer Dome Project (ESS: 100%) is in the core of Western Australia's lithium corridor in the Eastern Goldfields, approximately 130km south of Kalgoorlie and 275km north of the Port of Esperance. A Mineral Resource2 of 11.2Mt @ 1.16% Li2O has been defined at Dome North in the northern area of the Project. The southern Yilgarn area is recognised as being well-endowed with spodumene deposits, including Pioneer Dome, the Bald Hill Mine, the Mt Marion Mine, the Manna Project and the Buldania Project all of which are located within a 90km radius. The world-class Greenbushes Deposit, the Mt Holland Mine and the Mt Cattlin Mine are located further west, south-west and south-south-west, respectively. 공시 • May 05
Mineral Resources Rules Out Liontown Resources Bid Mineral Resources Limited (ASX:MIN) boss Chris Ellison has ruled out a potential buyout attempt on lithium miner Liontown Resources Limited (ASX:LTR) or a spin-off of its own lithium operation. The highly regarded billionaire who has built Mineral Resources into a $14 billion resources powerhouse, said he was yet to have a discussion with management of Essential Metals Limited (ASX:ESS) about his intentions for the company after amassing a major stake in the business. Speaking to DataRoom after his presentation at the Macquarie Australia Conference, Mr. Ellison said Essential Metals was highly strategic for its business. "We are yet to have a discussion with management," he said. "We don't want to be aggressive. "We want to work with them." Mineral Resources last month thwarted a buyout attempt of Essential Metals by acquiring 19.55% of the company then voting against a 50c-a-share buyout proposal by IGO and Tianqi. Mr. Ellison said he was uncertain whether MinRes would bid for Essential Metals and may carry out a farm in agreement over its mining opportunities. Mr. Ellison said on the sidelines of the conference when asked about speculation that MinRes was considering a spin-off in the US of its lithium business through JPMorgan, that it was never under any serious consideration by the company. 공시 • Feb 08
Essential Metals Limited Announces Positive Pioneer Dome Scoping Study Supports Commencement of Detailed Studies Essential Metals Limited announced positive pioneer dome scoping study supports commencement of detailed studies. The Scoping Study is based on the Dome North lithium Mineral Resource upgrade in December 2022 with an impressive 81% of the total contained lithium upgraded to the higher confidence Indicated Category, reflecting the thick, high grade and out-cropping nature of the deposits. Scoping Study Cautionary Statements: The Scoping Study referred to in this announcement has been undertaken to ascertain whether to proceed to more definitive studies on the viability of the Pioneer Dome Lithium Project. It is a preliminary technical and economic study to determine the potential viability of the Pioneer Dome Lithium Project. It is based on low level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further exploration and evaluation work and appropriate studies are required before Essential will be able to estimate any Ore Reserves or to provide any assurance of an economic development case. Approximately 94% of the Life-of-Mine (LOM)Production Target is in the Indicated Mineral Resource category with only 6% in the Inferred Mineral Resource category. Essential has concluded that it has reasonable grounds for disclosing a Production Target which includes the 6% Inferred Mineral Resources given the characteristics of the deposits and the location of the Inferred Resources within the deposits. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of further Measured or Indicated Resources or that the Production Target or preliminary economic assessment will be realised. It should be noted that the term "ore" is used in this announcement to describe mineralised material that mine optimisation modelling considered potentially economic. It should not be confused with the stricter definition of economically extractable material as denoted by ore in an "Ore Reserve". The Scoping Study is based on the material assumptions outlined in this announcement. These include assumptions about the availability of funding. While Essential considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of outcomes indicated in the Scoping Study, funding of in the order of approximately $350 million will likely be required to cover capital expenditure and working capital. Investors should note that there is no certainty that Essential will be able to raise that amount of funding when needed. Key Outcomes: The Scoping Study is based on the Mineral Resource upgrade reported on 20 December 20222 which comprises Indicated and Inferred Resources of 11.2Mt at 1.16% Li2O, of which 81% of the total contained lithium is reported within the higher confidence Indicated category. The Scoping Study is based on three open pits (one per deposit) producing 8.8Mt at 1.11% Li2O for processing via a 1.2Mtpa concentrator process plant, resulting in the production of spodumene concentrate with a targeted lithium grade of 5.7% Li2O. Reported Earnings • Sep 25
Full year 2021 earnings released: AU$0.008 loss per share (vs AU$0.009 profit in FY 2020) Full year 2021 results: Net loss: AU$1.38m (down 202% from profit in FY 2020). Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 14
First half 2021 earnings released: AU$0.007 loss per share (vs AU$0.01 profit in 1H 2020) First half 2021 results: Net loss: AU$1.08m (down 173% from profit in 1H 2020). Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings.