20974 29Metals AR23 WEB V1 - Flipbook - Page 96
29Metals 2023 Annual Report
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Directors’ Report continued
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
17
Directors’ Report
Operating and Financial Review
▪
on 28 June 2023, the Group required and obtained covenant relief under the Group Syndicated acility greement dated 20 ctober 2021, in respect
of the Debt Service Coverage Ratio (‘^Z’) and Net Total Leverage Ratio (‘Ed>Z’) covenants under the Group debt facilities for the 30 June 2023
calculation date (refer to Note 26)
▪
in ugust 2023, the Group and its lenders agreed to amend the Syndicated acility greement dated 20 ctober 2021, which amendments:
▪
―
provided further relief for DSCR under the Group debt facilities for the 31 December 2023, 30 June 2024 and 31 December 2024 calculation
dates
―
provided further relief for the NTLR under the Group debt facilities for the 31 December 2023 calculation date and
―
included a change to the fixed repayment profile under the facility by increasing the total repayments for the quarters ended 30 September
2023 to 30 June 2025 to S$50,000,000 from S$45,000,000, with the last repayment on 30 September 2026 reducing from S$50,000,000
to S$45,000,000 and
in September and ctober 2023, the Group received proceeds from an issue of 219,130,402 shares amounting to $151,200,000 (before transaction
costs) (refer Note 30).
In addition, on 28 June 2023 the Group negotiated an extension of the Group’s environmental bank guarantee facility by one year to 29 ctober 2024.
urther information regarding the financial impacts of the xtreme
eather vent at Capricorn Copper in March 2023 is disclosed in Note .
The Group’s current assets at 31 December 2023 amounted to $306,660,000 (2022: $344,956,000) and include cash and cash equivalents of $161,859,000
(2022: $1 1,962,000).
The Group’s current assets at 31 December 2023 exceed current liabilities by $46,149,000 (2022: $121,201,000). Current interest bearing liabilities are
$99,836,000 at 31 December 2023 (2022: $33, 42,000).
The NTLR is the ratio of total net debt on the calculation date to ITD for the 12 months calculation period ending on that calculation date, with a
covenant of less than 2:1. The key assumptions for the compliance with the NTLR at 30 June 2024 and 31 December 2024 are:
▪
receipt of regulatory approvals required to maintain continuous tailings deposition and production at Capricorn Copper on a timely basis (relative
to remaining capacity in existing tailings storage facilities)
▪
achieving planned production and
▪
receipt of further proceeds from the ongoing insurance claim related to the loss and damage suffered as a result of the Capricorn Copper xtreme
eather vent during the first half of 2024 and
▪
ongoing management of working capital in line with expectations.
ITD
Should the Company be unable to comply with the NTLR covenant requirements, as a result of the key matters not being achieved, and the Company is
unable to renegotiate the covenant requirements with the Company’s lenders, there is significant uncertainty as to whether the Group would be able to
continue as a going concern, and, whether it will realise its assets and settle its liabilities in the normal course of business.
These Consolidated inancial Statements do not include any ad ustments relating to the recoverability and classification of recorded asset amounts, or
to the amounts and classification of liabilities that might be necessary should the Group be unable to continue as a going concern.
The Directors, in considering the appropriateness of the going concern basis for the preparation of the Consolidated inancial Statements, have reviewed
the Group’s cashflow forecasts prepared by Management which indicate the Group will have sufficient cash to continue as a going concern for the 12
months from the date of this report.
The Directors, at the date of signing, consider that the going concern basis of preparation for the Consolidated inancial Statements is appropriate on the
basis of:
▪
the matters outlined above
▪
other funding and liquidity options available to the Group and
▪
ongoing engagement with the Group’s lenders.
Segment Information
The Group has determined that it has three reportable segments: Golden Grove, Capricorn Copper and xploration (which includes Redhill and regional
exploration activities at Golden Grove and Capricorn Copper).
The following summary describes the operations of each reportable segment.
Reporting segments
ase and precious metals mining, mineral production and associated activities
Capricorn Copper
ase and precious metals mining, mineral production and associated activities
xploration
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Description
Golden Grove
xploration for mineral resources at Redhill (Chile), and regional exploration at Golden Grove ( estern ustralia) and Capricorn Copper
( ueensland)
