NTL - New Talisman Mine - New board & Directors

[Landyman]

MRE - is this a case of chicken or egg?

There may be extra resource in the ground. If they spend more money and time proving it, then capital raise (or bank funding) becomes more palatable ie remain a "minerals development and exploration company" OR they could focus on diversifying (maybe thats too harsh on them) and become a gold producer and explore further resource later.

The accountant in me says, option 1, know what you have so you can resource appropriately. The shareholder says option 2 is the way to go.

Or do I have it completely wrong?

[jonu]

MRE - is this a case of chicken and egg?

There may be extra resource in the ground. If they spend more money and time proving it, then capital raise (or bank funding) becomes more palatable ie remain a "minerals development and exploration company" OR they could focus on diversifying (maybe thats to harsh on them) and become a gold producer and later explore further resource.

The accountant in me says, option 1, know what you have so you can resource appropriately. The shareholder says option 2 is the way to go.

Or do I have it completely wrong?

Option 2 is definitely the way to go at this stage. If things hadn't been so slow I might lean towards option 1. By mining asap NTL takes advantage of the high POG and can channel profit from that into further exploration/development if need be.

[Paint it Black]

Option 2 is definitely the way to go at this stage. If things hadn't been so slow I might lean towards option 1. By mining asap NTL takes advantage of the high POG and can channel profit from that into further exploration/development if need be.

Totally agree Jonu - have been saying this for several years now. The perception/reality that nothing is happening at the mine and the concern of another capital raise has capped the SP and it wont move despite all the favorable peer review and increased resource reporting. The mine must start producing as a priority and not worry about triggering of the 2 year RC window.

[jonu]

Annual Report due today. While an Annual Report is essentially a rehash of material released earlier, it does give the opportunity for the company to mention stuff that has occurred since the last Quarterly, and outline next steps. With the JORC Peer Review just released I'm hoping NTL joins a few more dots that were alluded to.

Mystery Vein appears to be a fantastic opportunity to access easy ore and ultimately add significantly to Resource. A massive win/win. Get gold out of the ground, making a profit while doing so....and adding significant value to the mine.

[Landyman]

FOR IMMEDIATE RELEASE
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL]
Preliminary Announcement – Full Year Results
Current Reporting Period
31 March 2020
(12 months)
$ Previous Reporting Period
31 March 2019
(12 months)
$ Change
%
Revenue for ordinary activities 39,511 86,734 (54%)
Loss from ordinary activities attributable to members of the listed issuer 3,710,748 1,203,327 208%
Tenement expenditure 1,109,327 2,396,308 (54%)
Prospecting Expenditure 8,000 8,050 (1%)
Total Net Expenditure 4,828,075 3,607,685 34%

No dividend attributed to this period.

Loss from ordinary activities attributable to members of the listed issuer includes an impairment of prospecting costs of $2,757,313 due to uncertainty around access to the land (last year Nil).

Tenement expenditure for the reporting period was $1,109,327 compared to $2,396,308 in the previous reporting period.

At the end of the year the Company had a cash balance of $2,495,718.
HIGHLIGHTS OF THE YEAR

• First gold and concentrate produced from pilot plant

• Completion of successful capital raising of $3.6m.

• Refurbishment of the underground workings completed.

• Completion Metallurgical testwork – Gold and precious metals recovery rates achieved..

• Design and planning of a larger volume plant commenced.

• Life of mine level plan continues to be developed.

• Mineral resource estimate and peer review by AMC complete

SUMMARY
During the year the company completed a successful capital raising of $3.6m which enabled the company to complete refurbishment of the underground workings, establish the pilot plant, complete metallurgical testwork, produce the first gold concentrate and commence planning and consenting of a larger scale processing plant.
With the extraordinary circumstances of COVID-19 affecting operations in 2020, New Talisman was left, like many companies, restricted in operations while the New Zealand Government imposed complete lockdown on non-essential services by imposing COVID -19 level 4.
The highly anticipated Resource Estimate update and final review was received from AMC following the reporting period.
The primary focus is now on delivering a production route for the Talisman ore following completion of a majority of the testwork at the pilot plant.
NOTE: a Detailed report outlining the activities during the year is included in the Annual report which will be released later today.

 
Consolidated Statement of Comprehensive Income

Reporting Period
31 March 2020 Previous Reporting Period 31 March 2019
$ $
Revenue 39,511 86,734
Total revenue 39,511 86,734

Audit fees 33,119 34,058
Depreciation 51,708 46,906
Director fees 136,426 140,000
Foreign exchange loss 4,673 11,426
Fair Value of Investments Movement 2,615 44,685
Impairment of Prospecting Costs 2,757,313 -
Rent and leasing 23,414 25,508
Operating expenses 740,991 987,478
Total operating expenses 3,750,259 1,290,061
Loss from operations 3,710,748 1,203,327
Exploration Costs written off - -
Other Comprehensive Income - 1,783
Net deficit attributable to members 3,710,748 1,201,544

Earnings per share
Basic earnings/(loss) per share (0.15) cents (0.06) cents
Diluted earnings/(loss) per share (0.15) cents (0.06) cents

Consolidated Statement of Financial Position

Reporting Period
31 March 2020
Reporting Period
31 March 2019
$ $
Cash 2,495,718 1,243,656
Receivables and prepayments 178,626 172,066
Advances to related parties - -
Current assets 2,674,344 1,415,722

Property, plant & equipment 227,421 259,960
Assets Under Construction 13,143,901 12,034,575
Intangible assets (prospecting expenditure) 11,637 2,760,950
Investments 8,698 11,313
Non-current assets 13,391,657 15,066,798

Total assets 16,066,001 16,482,520

Payables 54,898 384,046
Other 17,613 18,000
Employee entitlements 18,240 19,997
Total Current liabilities 90,751 422,043
Total Non-Current liabilities 32,215 32,215

Total liabilities 122,966 454,258



Capital

38,216,371

34,590,849
Reserves - -
Retained profit/(loss) (22,273,336) (18,562,587)
Total equity 15,943,035 16,028,262

Total Equity and Liabilities 16,066,001 16,428,520

Net tangible assets per security
Net tangible assets 15,931,398 13,267,312
Net tangible assets per security 0.59 cent 0.61 cent

Consolidated Statement of Cash Flows

Reporting Period
31 March 2020
Reporting Period
31 March 2019
$ $
Cash flows relating to operating activities
Cash inflows 4,463 62,081
Cash outflows (1,236,755) (1,140,861)
Net operating cash flows (1,232,292) (1,078,780)

Cash flows relating to investing activities
Cash inflows - -
Cash outflows (1,136,495) (2,484,892)
Net investing cash flows (1,136,495) (2,484,892)

Cash flows relating to financial activities
Cash inflows 3,625,522 -
Cash outflows - -
Net financing cash flows 3,625,522 -

Net increase/(decrease) in cash held 1,256,735 (3,563,672)
Cash at beginning of period 1,243,656 4,828,750
Exchange rate gain/(loss) (4,673) (11,422)
Cash at end of period 2,495,718 1,243,656


Consolidated Statement of Changes in Equity

Reporting Period
31 March 2019
Reporting Period
31 March 2018
$ $
Equity at start of period 16,028,262 17,229,806
Net profit / (loss) (3,710,748) (1,203,327)
Shares issued 3,625,521 -
Prior Period Adjustment - 1,783
Equity at end of period 15,943,035 16,028,262

[whatsup]

FOR IMMEDIATE RELEASE
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL]
Preliminary Announcement – Full Year Results
Current Reporting Period
31 March 2020
(12 months)
$ Previous Reporting Period
31 March 2019
(12 months)
$ Change
%
Revenue for ordinary activities 39,511 86,734 (54%)
Loss from ordinary activities attributable to members of the listed issuer 3,710,748 1,203,327 208%
Tenement expenditure 1,109,327 2,396,308 (54%)
Prospecting Expenditure 8,000 8,050 (1%)
Total Net Expenditure 4,828,075 3,607,685 34%

No dividend attributed to this period.

Loss from ordinary activities attributable to members of the listed issuer includes an impairment of prospecting costs of $2,757,313 due to uncertainty around access to the land (last year Nil).

Tenement expenditure for the reporting period was $1,109,327 compared to $2,396,308 in the previous reporting period.

At the end of the year the Company had a cash balance of $2,495,718.
HIGHLIGHTS OF THE YEAR

• First gold and concentrate produced from pilot plant

• Completion of successful capital raising of $3.6m.

• Refurbishment of the underground workings completed.

• Completion Metallurgical testwork – Gold and precious metals recovery rates achieved..

• Design and planning of a larger volume plant commenced.

• Life of mine level plan continues to be developed.

• Mineral resource estimate and peer review by AMC complete

SUMMARY
During the year the company completed a successful capital raising of $3.6m which enabled the company to complete refurbishment of the underground workings, establish the pilot plant, complete metallurgical testwork, produce the first gold concentrate and commence planning and consenting of a larger scale processing plant.
With the extraordinary circumstances of COVID-19 affecting operations in 2020, New Talisman was left, like many companies, restricted in operations while the New Zealand Government imposed complete lockdown on non-essential services by imposing COVID -19 level 4.
The highly anticipated Resource Estimate update and final review was received from AMC following the reporting period.
The primary focus is now on delivering a production route for the Talisman ore following completion of a majority of the testwork at the pilot plant.
NOTE: a Detailed report outlining the activities during the year is included in the Annual report which will be released later today.

 
Consolidated Statement of Comprehensive Income

Reporting Period
31 March 2020 Previous Reporting Period 31 March 2019
$ $
Revenue 39,511 86,734
Total revenue 39,511 86,734

Audit fees 33,119 34,058
Depreciation 51,708 46,906
Director fees 136,426 140,000
Foreign exchange loss 4,673 11,426
Fair Value of Investments Movement 2,615 44,685
Impairment of Prospecting Costs 2,757,313 -
Rent and leasing 23,414 25,508
Operating expenses 740,991 987,478
Total operating expenses 3,750,259 1,290,061
Loss from operations 3,710,748 1,203,327
Exploration Costs written off - -
Other Comprehensive Income - 1,783
Net deficit attributable to members 3,710,748 1,201,544

Earnings per share
Basic earnings/(loss) per share (0.15) cents (0.06) cents
Diluted earnings/(loss) per share (0.15) cents (0.06) cents

Consolidated Statement of Financial Position

Reporting Period
31 March 2020
Reporting Period
31 March 2019
$ $
Cash 2,495,718 1,243,656
Receivables and prepayments 178,626 172,066
Advances to related parties - -
Current assets 2,674,344 1,415,722

Property, plant & equipment 227,421 259,960
Assets Under Construction 13,143,901 12,034,575
Intangible assets (prospecting expenditure) 11,637 2,760,950
Investments 8,698 11,313
Non-current assets 13,391,657 15,066,798

Total assets 16,066,001 16,482,520

Payables 54,898 384,046
Other 17,613 18,000
Employee entitlements 18,240 19,997
Total Current liabilities 90,751 422,043
Total Non-Current liabilities 32,215 32,215

Total liabilities 122,966 454,258



Capital

38,216,371

34,590,849
Reserves - -
Retained profit/(loss) (22,273,336) (18,562,587)
Total equity 15,943,035 16,028,262

Total Equity and Liabilities 16,066,001 16,428,520

Net tangible assets per security
Net tangible assets 15,931,398 13,267,312
Net tangible assets per security 0.59 cent 0.61 cent

Consolidated Statement of Cash Flows

Reporting Period
31 March 2020
Reporting Period
31 March 2019
$ $
Cash flows relating to operating activities
Cash inflows 4,463 62,081
Cash outflows (1,236,755) (1,140,861)
Net operating cash flows (1,232,292) (1,078,780)

Cash flows relating to investing activities
Cash inflows - -
Cash outflows (1,136,495) (2,484,892)
Net investing cash flows (1,136,495) (2,484,892)

Cash flows relating to financial activities
Cash inflows 3,625,522 -
Cash outflows - -
Net financing cash flows 3,625,522 -

Net increase/(decrease) in cash held 1,256,735 (3,563,672)
Cash at beginning of period 1,243,656 4,828,750
Exchange rate gain/(loss) (4,673) (11,422)
Cash at end of period 2,495,718 1,243,656


Consolidated Statement of Changes in Equity

Reporting Period
31 March 2019
Reporting Period
31 March 2018
$ $
Equity at start of period 16,028,262 17,229,806
Net profit / (loss) (3,710,748) (1,203,327)
Shares issued 3,625,521 -
Prior Period Adjustment - 1,783
Equity at end of period 15,943,035 16,028,262

From reading the above and with cash at balance date of $2.5 mil less 3 months expenditure of say $300K per month net atm of $1.6 mil, it will be a close thing and IMO a small CR of $2.0 mill will be needed this year.

[Landyman]

So they sold $39k of gold? Nice, though down on last year.

Cash costs for 12months $933 (if my rushed math is correct), so $78k month, so $2.5m less 3x78 = 2.25m left?

[jonu]

From reading the above and with cash at balance date of $2.5 mil less 3 months expenditure of say $300K per month net atm of $1.6 mil, it will be a close thing and IMO a small CR of $2.0 mill will be needed this year.

Where do you get 300k per month from? Especially during Lockdown?

[Getty]

No worries, OGC (asx) will step in and buy this mob out.
They need more immediate cashflow from gold ready to mine, after political wrangling in Philipines, and will have synergies here with their Waihi operation, sack the NTL mahagement and board, to release some wealth for the shareholders.
Remember where you heard it first...

[whatsup]

Delays, delays delays worst business case possible coming to fruition - greens, floods what else can/will cause cost blowouts , larger processing plant not being available , delays in shipping, installation, political interference , its all out there , from a S Her who has held since 1986 days!