Announcement • Mar 31
Resource Development Group Limited Announces High Purity Manganese Project Update Resource Development Group Limited provided an update on the successful production of further samples of High Purity Manganese Sulphate Monohydrate (HPMSM) using its own proprietary technology to process ore from its 100% owned Ant Hill manganese deposit, and its aim of securing a strategic partner to advance the project into full-scale production. This announcement follows on from the one made on 29th November 2024 and is in line with the Company's objective of becoming a Battery Minerals producer. The initial Micro Plant runs used ore from the same diamond drill holes as used in the previously reported testwork. The assorted samples remaining after the previous testwork were blended to give a series of samples of different feed composition which partially covered the anticipated variability in composition across the Ant Hill deposit. A further 100kg of ore were obtained from stockpiles to the south of the deposit and at the former site of the beneficiation plant developed prior to RDG taking ownership of the project. An additional 250kg was collected from the same stockpiles to allow continuation of the optimisation work in the Micro Plant and to produce samples of HPMSM which have been made available for qualification testing to various OEM's. Following on from previous announcements, the present runs were made using the same flowsheet but at larger scale on a semi-continuous basis. Reagents commercially available in bulk were used to better understand the importance of reagent purity on the process. Reagents from different sources were trialled and were found to have variable levels of impurities which affected the purification process. Additional work was undertaken to source reagents with lower impurities from other suppliers. The initial runs in the Micro Plant were used to provide technical data, which was used by Carnac Project Delivery Services Pty Ltd. (Carnac) to develop the 50,000tpa (Train 1) SysCAD model of the process. The leachate was processed through purification and crystallisation to give manganese sulphate crystals. Substantial process development occurred during these runs to gain a better understanding of the interrelationship between temperature, time, impurity removal, reagent type and addition and the general
operating conditions. The reagent requirements, operating temperature, residence times, maximum impurity levels in solution and a range of other parameters were optimised for each stage using the Micro Plant.Further smaller scale runs were undertaken to allow investigation of alternative process options, including alternative methods for removing impurities. The most recent runs to produce samples for OEM qualification used the same flowsheet, reagents and operating conditions in order to assess the consistency of the process. Buy Or Sell Opportunity • Mar 10
Now 26% undervalued after recent price drop Over the last 90 days, the stock has fallen 54% to AU$0.011. The fair value is estimated to be AU$0.015, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 38% over the last 3 years. Earnings per share has grown by 49%. Revenue is forecast to grow by 0.5% in 2 years. Earnings are forecast to decline by 94% in the next 2 years. Buy Or Sell Opportunity • Feb 17
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to AU$0.018. The fair value is estimated to be AU$0.015, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 71%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are forecast to decline by 75% per annum over the same time period. Buy Or Sell Opportunity • Jan 10
Now 24% overvalued Over the last 90 days, the stock has fallen 32% to AU$0.019. The fair value is estimated to be AU$0.015, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 71%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are forecast to decline by 75% per annum over the same time period. Announcement • Oct 31
Resource Development Group Limited, Annual General Meeting, Nov 29, 2024 Resource Development Group Limited, Annual General Meeting, Nov 29, 2024. Location: hlb mann judd, level 4, 130 stirling street, perth western australia 6000 Australia Major Estimate Revision • Sep 05
Consensus revenue estimates fall by 20% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from AU$151.0m to AU$121.0m. EPS estimate fell from AU$0.0056 to AU$0.0046 per share. Net income forecast to shrink 20% next year vs 28% growth forecast for Construction industry in Australia . Consensus price target down from AU$0.055 to AU$0.034. Share price fell 20% to AU$0.024 over the past week. Reported Earnings • Aug 30
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: AU$0.006 (up from AU$0.005 in FY 2023). Revenue: AU$136.3m (up 145% from FY 2023). Net income: AU$17.4m (up 26% from FY 2023). Profit margin: 13% (down from 25% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 1.3% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Construction industry in Australia. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 07
Consensus revenue estimates decrease by 20%, EPS upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from AU$158.5m to AU$127.0m. EPS estimate increased from AU$0.0015 to AU$0.0052 per share. Net income forecast to grow 10% next year vs 22% growth forecast for Construction industry in Australia. Consensus price target down from AU$0.068 to AU$0.055. Share price fell 2.9% to AU$0.034 over the past week. Price Target Changed • Mar 04
Price target decreased by 14% to AU$0.055 Down from AU$0.064, the current price target is provided by 1 analyst. New target price is 62% above last closing price of AU$0.034. Stock is down 43% over the past year. The company is forecast to post earnings per share of AU$0.0052 for next year compared to AU$0.0048 last year. New Risk • Dec 19
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Market cap is less than US$100m (AU$132.8m market cap, or US$89.0m). Announcement • Oct 05
Resource Development Group Limited, Annual General Meeting, Nov 24, 2023 Resource Development Group Limited, Annual General Meeting, Nov 24, 2023. New Risk • Sep 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (AU$129.8m market cap, or US$83.5m). Reported Earnings • Sep 01
Full year 2023 earnings released: EPS: AU$0.005 (vs AU$0.001 in FY 2022) Full year 2023 results: EPS: AU$0.005 (up from AU$0.001 in FY 2022). Revenue: AU$59.1m (up 16% from FY 2022). Net income: AU$13.8m (up 293% from FY 2022). Profit margin: 23% (up from 6.9% in FY 2022). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 46% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Construction industry in Australia. Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • Aug 31
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 Risks Debt is not well covered by operating cash flow (2.4% operating cash flow to total debt). High level of non-cash earnings (22% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Market cap is less than US$100m (AU$135.6m market cap, or US$87.8m). Reported Earnings • Mar 01
First half 2023 earnings released: EPS: AU$0.21 (vs AU$0 in 1H 2022) First half 2023 results: EPS: AU$0.21 (up from AU$0 in 1H 2022). Revenue: AU$25.0m (down 2.3% from 1H 2022). Net income: AU$5.93m (up AU$5.04m from 1H 2022). Profit margin: 24% (up from 3.5% in 1H 2022). The increase in margin was driven by lower expenses. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 3 non-independent directors. Non-Executive Chairman of the Board Mark Wilson was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Oct 26
Resource Development Group Limited Announces Resignation of Paul Brown as Nonexecutive Director The board of Resource Development Group Limited announced the resignation of Mr. Paul Brown as nonexecutive director. Announcement • Oct 17
Resource Development Group Limited Provides Lucky Bay Garnet Project Update Resource Development Group Limited provided the following project update as the processing plant construction is now completed with commissioning well underway. Finished screened garnet products are now being produced with the commissioning of the Mineral Separation Plant and Screening & Packaging facility. Further resource extension drilling and heavy mineral (HM) analysis is planned to commence in November after which an update to the project resource will be completed. RDG acquired the Lucky Bay Garnet Project (Lucky Bay) during January 2021 through its wholly owned subsidiary, Australian Garnet Pty Ltd. (AGPL). Lucky Bay's tenements, located between the coastal towns of Kalbarri and Port Gregory, are contiguous with the world's largest supplier of highquality alluvial garnet. Highquality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets. Since acquiring the project, RDG has undertaken the design, procurement and construction of a worldclass processing facility with RDG's wholly owned subsidiary, Central Systems (Centrals) responsible for the overall construction of the project. The Company is extremely pleased to report that it has maintained a safe work environment at Lucky Bay with a Total Recordable Injury Frequency Rate (TRIFR) of zero for the duration of the construction period, a pleasing statistic enjoyed by the entire Company, for the duration of the construction works onsite. Topsoil clearing and establishment of the bund walls is now completed for the initial mining stage. The Mining Unit Plant has completed commissioning and is performing well. Scheduled throughput for the plant is approximately 480tph. During commissioning the plant was able to sustain its design throughput of 600tph comfortably, without any issues. The Wet Concentrator plant construction is completed. Some upgrade work has been designed and implemented to the slime tails thickener and tailings stackers to improve operational performance. These changes are performing well, and the plant is continuing to steadily increasing daily throughput as the plant performance and heavy mineral recoveries are optimised. Commissioning of the Mineral Separation Plant is nearing completion and is performing well. The screening plant and packaging facility commissioning is also proceeding well with first bagged garnet products coming off the production lines last week. Packaged products are being stocked for dispatch to customers during this coming week. Foundations are being prepared for the renewable energy infrastructure that will initially include seven 600kw wind turbines that will be connected to the local mine grid. The foundations and underground cabling are targeted for completion by the end of this year. Installation of the towers, turbines and associated electrical infrastructure to integrate and manage the windfarm is planned to be commissioned by mid2023. Resource drilling is planned to commence in November to extend and upgrade the northern end of the Menari North deposit. The drilling program is designed to evaluate 4.5km of northerly strike length from the northern boundary of M70/1387 where drilling by Westralian Sands in the late 1990's intersected zones of significant Heavy Minerals. An updated resource estimate that includes this new drilling is anticipated towards the end of March 2023. Lucky Bay is located approximately 530km north of Perth and 35km south of Kalbarri. RDG's wholly owned subsidiary Australian Garnet Pty Ltd. (AGPL) holds two granted mining leases covering 1,572 hectares and two Exploration Licences totalling 7,394 hectares, which combined make up the Lucky Bay Garnet Project area. The Lucky Bay project area is north of GMA Garnet Group's existing garnet operation, which is the world's largest supplier of highquality alluvial garnet and have successfully been in operation for the past 40 years. Announcement • Oct 05
Resource Development Group Limited, Annual General Meeting, Nov 21, 2022 Resource Development Group Limited, Annual General Meeting, Nov 21, 2022. Reported Earnings • Sep 01
Full year 2022 earnings released: EPS: AU$0.001 (vs AU$0 in FY 2021) Full year 2022 results: EPS: AU$0.001 (up from AU$0 in FY 2021). Revenue: AU$50.9m (down 24% from FY 2021). Net income: AU$3.51m (up AU$3.19m from FY 2021). Profit margin: 6.9% (up from 0.5% in FY 2021). The increase in margin was driven by lower expenses. Announcement • Jun 24
Resource Development Group Limited Provides Lucky Bay Garnet Project Update Resource Development Group Limited provided the following project update as the processing plant construction nears completion, commissioning is due to commence, and first production of garnet is fast approaching. Further confirmatory drilling and Heavy Mineral (HM) analysis has also enabled an update to the project resource estimate to be completed. RDG acquired the Lucky Bay Garnet Project (Lucky Bay) during January 2021 through its wholly owned subsidiary, Australian Garnet Pty Ltd. (AGPL). Lucky Bay's tenements, located between the coastal towns of Kalbarri and Port Gregory, are contiguous with the world's supplier of highquality alluvial garnet. Highquality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets. Since acquiring the project, RDG has undertaken the design, procurement and construction of a worldclass processing facility with RDG's wholly owned subsidiary, Central Systems responsible for the overall construction of the project. Demand for high quality garnet abrasives have continued to grow in key markets around the world. Global market demand has been driven by increased investment in infrastructure, manufacturing, oil and gas projects and shipbuilding. In blast abrasive markets, customers are seeking high quality garnet products that deliver superior performance compared to slag abrasives. Demand for quality blast abrasives is forecast to continue to grow over the foreseeable future. AGPL has had very strong interest in its products from customers around the world looking for quality garnet abrasive. The Company has invested in stateoftheart mining and processing facilities at Lucky Bay, Western Australia, to ensure its garnet products meet the most stringent quality standards and deliver the performance customers require. Nonmagnetic concentrate (nonmag) demand from China is also forecast to remain high in the medium term. Indicative pricing received, based on the mineral content of nonmag concentrate, has increased the expected revenue for these sales compared to last market update. Demand for ilmenite is strong, with prices expected to hold at the current high levels level for the foreseeable future. Distribution agreements have been established with customers in Asia Pacific, USA and Europe. These distributors are well established in their respective markets as reputable suppliers of garnet abrasives. They include Burwell Technologies, Kuhmichel in Australia, CESCO and Allredi in the USA and Meldgaard and Kuhmichel in Europe. The Company will work with all its distributors to establish and position the Australian Garnet brand as `the garnet abrasive that delivers superior performance when it is launched during August 2022. The Company is experiencing cost increases from shipping lines to its key export markets. COVID19 related events around the world have impacted shipping capacity, which has resulted in increases in shipping rates from Fremantle, Western Australia to destinations in USA and Europe. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Non-Executive Chairman of the Board Mark Wilson was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 11
Resource Development Group Limited Approves Lucky Bay Garnet Project for Development The Board of Resource Development Limited announced that its 100% owned Lucky Bay Garnet Project (formerly the Balline Garnet Project) has been approved for development. Project Summary: Funding secured through commissioning and first production via a $60 million loan; Approval to commence onsite construction during Third Quarter 2021; Mining equipment selected and processing plant detailed design nearing completion; Orders for long lead items placed; First production scheduled for First Quarter 2022. RDG has recently undertaken a drilling program and is expecting to be able to provide a resource update within the next month. Previously disclosed Mineral Resources indicate an eight-year mine life. Construction is estimated to take approximately six months by RDG subsidiary Central Systems and, during this time, the project will employ 70 people onsite. Capital cost is estimated at $60 million. The project is targeting production of 130ktpa garnet with the product to be exported through the Ports of Fremantle and Geraldton to global markets. Overview: On the 1st February 2021 RDG announced that it had successfully acquired the Balline Garnet Project. RDG set about fast tracking development of the project by commencing early onsite works, drilling to upgrade and extend the resource, establishing ground water production bores and finalising geotechnical\ designs to enable earthworks to commence by Third Quarter 2021. The project is fully funded and technical support is being provided by RDG's major shareholder, Mineral Resources Limited. The table below provides a breakdown of the overall estimated cost to build the plant and commence operations. Detailed engineering and design of the Mining Unit Plant (MUP), Wet Concentrator Plant (WCP), Mineral Separation Plant (MSP) and the Screening and Packaging Plant (SPP) is now complete with detailed electrical design well underway. Contracts for long lead items have been executed to ensure the equipment is delivered on time and all equipment vendors remain on target to meet their delivery schedule. Offsite fabrication of key component of the plant will commence during July. The modular design of the processing plant will enable the construction division of RDG, Central Systems, to efficiently transport the modules to site and rapidly complete construction and assembly. Initial marketing enquiries confirms strong interest in the premium garnet products that will be produced at the Lucky Bay Garnet mine, especially from distributors in Europe and North America. Announcement • Jun 03
Resource Development Group Limited Provides Sunday Hill Mineral Resource Statement Resource Development Group Limited provided Sunday Hill Mineral Resource Statement. The Sunday Hill Mineral Resource, reported in accordance with the JORC Code as of the 1st June 2021, is estimated to be 5.0 million tonnes at 18.0 % Mn, 22.8 % Fe and 19.1 % SiO2, using a nominal Mn cut-off of
10%. The Sunday Hill Deposit is located on tenement M46/237, approximately 120 km southeast of Marble Bar and 5 km north of the Ant Hill Deposit. The topology is denoted by a prominent mesa that rises 20-30 metres above the surrounding plain. The following Mineral Resource Estimate was generated by Jason Gotte, who is a full time employee of Mineral Resources Limited. The Resource Estimate was reviewed by Matt Watson who is a full time employee of Mineral Resources Limited. Mr. Watson is acting as the competent person as defined by JORC 2012. Sunday Hill is a fault-bounded, remnant outlier of mid-Proterozoic sediments forming a broad syncline approximately 3 km wide and 4 km long and dipping shallowly to the West. The area contains rocks from the Coondoon (MnC), Hamersley (Hm) and Fortescue (Fj) Formations. A prominent scarp occurs along the North Eastern margins of the deposit, where the Manganese and Hamersley Groups are faulted against Fortescue Group sediments. Massive manganite mineralisation is also hosted within the sub-horizontal mudstones of the Marra Mamba Formation (Hamersley Group) and siliceous cherts of the Pinjan Chert Breccia: a karst-replacement of the Carawine Dolomite. Mineralisation trends NW-SE, dipping to the south-west. The mineralisation has a strike extent of 800 m with down dip extensions of 200 m and thicknesses of 40 m. In 2020, Resource Development Group completed an additional 71 RC holes (4,239m) and 3 Diamond holes (150.4m) with the aim of generating a maiden Mineral Resource Estimate in compliance with JORC 2012. All drilling completed in the 1970s was completed using open hole percussion. All post 1970 drilling was completed using RC face sampling hammers, and PQ3 size core for diamond drilling. Drill spacing is variable across the deposit. In the southern areas, drill spacing is nominally 25 mE x 50 mN while in the Northern areas drilling spacing is wider where the steep nature of the topography has hindered the accessibility of drill rigs. The majority of post 1970 drilling has been orientated at -60 degrees towards 055°, designed to intercept the true width of mineralization. All collars have been snapped to a topographical surface derived from a LIDAR dataset. Announcement • Feb 02
Resource Development Group Limited (ASX:RDG) acquired Balline Garnet Project from Australian Garnet Corporation Pty Ltd. for AUD 21.8 million. Resource Development Group Limited (ASX:RDG) acquired Balline Garnet Project from Australian Garnet Corporation Pty Ltd. for AUD 21.8 million on February 1, 2021. Under the terms, Resource Development Group will pay AUD 4 million, issue shares in two tranches, Tranche 1 where Resource Development Group will issue 280 million shares on completion and Tranche 2 where Resource Development Group will issue 75 million shares following Foreign Investment Review Board approval of the transaction. If Foreign Investment Review Board should not approve the transaction, Resource Development Group will pay cash at10% discount to the 30-day volume weighted average price calculated at that time. Tranche 2 will be subject to a voluntary escrow period for a period of 12 months from completion. Keith Mayes Managing Director of Australian Garnet Corporation will join Resource Development Group Limited lead the development and future operation of the Project, along with other key management. All of the material conditions precedent were satisfied.
Resource Development Group Limited (ASX:RDG) completed the acquisition of Balline Garnet Project from Australian Garnet Corporation Pty Ltd. for AUD million on February 1, 2021. Announcement • Dec 12
Resource Development Group Limited (ASX:RDG) agreed to acquire Australian Garnet Corporation Pty Ltd. Resource Development Group Limited (ASX:RDG) agreed to acquire Australian Garnet Corporation Pty Ltd on December 10, 2020. The Resource Development Group is acquiring Australian Garnet Corporation in cash and debt free basis. Under terms, Resource Development will issue 345 million shares in two tranches, 275 million shares are issued at completion and remaining 75 million shares are issued following FIRB approval. On failure of receiving approval from Resource Development will settle the amount by cash based on a Resource Development share price equal to a 10% discount to the 30-day volume weighted average price calculated at that time. Second tranche is subject to voluntary escrow period of 12 months from the execution of the definitive documents. In addition, Resource Development agreed to settle all existing debt and creditors of Australian Garnet Corporation through the payment of not more than AUD 4 million in cash and the issue of up to 10 million creditor shares. The transaction is subject to completion of legal and commercial due diligence and Australian Garnet Corporation agreeing settlement terms with its creditors to the satisfaction of Resource Development Group. 