TIDMPDZ
RNS Number : 6972U
Prairie Mining Limited
31 July 2020
PRAIRIE MINING LIMITED
NEWS RELEASE | 31 July 2020
JUNE 2020 QUARTERLY REPORT
Highlights during, and subsequent to the quarter end,
-- Prairie secured A$18 million litigation funding to pursue its
damages claim against the Polish government
Prairie signed a Litigation Funding Agreement (LFA) with a
subsidiary of London listed Litigation Capital Management Limited
to pursue international arbitration claims against the Republic of
Poland for breaches of its obligations under the Australia-Poland
Bilateral Investment Treaty and Energy Charter Treaty (Claim)
The LFA facility is available for immediate draw down and
provides funding to cover legal, tribunal and external expert costs
and defined operating expenses associated with the Claim
A$18 million was provided as a limited recourse facility, being
repayable in the event that the damages award is recovered from the
Republic of Poland
-- Prairie and its legal counsel LALIVE are preparing for
arbitration claims to be submitted in the coming weeks
The Claim will allege that the Republic of Poland has breached
its obligations under both domestic law and relevant international
treaties
Prairie's claim for damages may include, but is not limited to,
lost profits for both the Jan Karski and Debiensko mines as well as
the value of Prairie's historic expenditure in developing both
mines plus interest and costs
LALIVE is a Swiss based specialist international disputes firm
with substantial expertise in investor state arbitration concerning
natural resources
-- In July 2020, Prairie announced a Share Purchase Plan
The Plan provides Eligible Shareholders the opportunity to apply
for up to A$30,000 worth of New Shares at issue price of A$0.25
(PLN0.69) for each New Share without incurring brokerage or
transaction costs
Prairie intends to raise A$4 million and intends to use the
proceeds for working capital requirements and business development
opportunities
-- During the quarter, Prairie continued to identify and assess
other suitable business opportunities in the resources sector
Enquiries
Prairie Mining Limited +44 20 7478 3900
Ben Stoikovich, Chief Executive info@pdz.com.au
Officer
Sapan Ghai, Head of Corporate
Development
This announcement as been authorised for release by the
Company's Chief Executive Officer, Mr Ben Stoikovich.
Dispute with Polish Government
On 1 July 2020, Prairie Mining Limited (Prairie or Company)
announced it had executed a LFA for A$18m (US$12.3m) with LCM
Funding UK Limited (a subsidiary of Litigation Capital Management
Limited (LCM) - a firm listed on the London Stock Exchange). The
facility is available for immediate draw down for Prairie to pursue
damages claims in relation to the investment dispute between
Prairie and the Polish Government that has arisen out of certain
measures taken by Poland in breach of the Energy Charter Treaty and
the Australia-Poland Bilateral Investment Treaty (BIT).
Prairie served a Notice of Dispute on the Government of Poland
on 6 February 2019 requesting that the Government engage formally
with Prairie to find an amicable resolution regarding the
development, construction and operation of the Projects. To the
disappointment of the Company and its shareholders, the Polish
Government never meaningfully engaged with the Company in respect
of the notice. Prairie will therefore take the necessary actions to
enforce the Company's rights and to recover full value for
shareholders, and notes that other foreign natural resources
companies have pursued international arbitration claims against the
Republic of Poland as a result of discriminatory treatment faced by
them in Poland.
The substantial litigation funding secured from LCM is testament
to the strength of Prairie's Claim. The A$18 million facility is
non-dilutive to Prairie shareholders, will cover the full legal
budget as well as partially cover a portion of Prairie's operating
expenses, while being repayable if a damages award is paid out.
Prairie and its legal counsel LALIVE, are preparing for
arbitration claims to be submitted in the coming weeks. We note
that other natural resources companies have successfully enforced
their rights through international arbitration and received
substantial sums for damages. In 2012, US company Occidental
Petroleum Corporation was paid US$1 billion by the government of
Ecuador following a World Bank Centre for Settlement of Investment
Disputes (ICSID) Tribunal award against Ecuador for terminating
Occidental's 30-year participation contract for an oil block.
In 2016, another World Bank ICSID tribunal awarded gold junior
Crystallex International Corporation damages of US$1.4 billion
(including interest) due to Venezuela's unfair and inequitable
treatment, and unlawful expropriation of Crystallex's investment in
the Las Cristinas gold mining project. Crystallex's claim was
financed by a third-party litigation funder. In 2019, the World
Bank ICSID tribunal also made a US$5.8 billion award to Barrick/
Antofagasta regarding Pakistan's unlawful denial of a mining lease
for the Reko Diq copper project, which proceeded under the
Australia-Pakistan Bilateral Investment Treaty.
Background to the claim
In February 2019, Prairie formally notified the Polish
Government that there exists an investment dispute between Prairie
and the Polish Government. Prairie's notification called for prompt
negotiations with the Government to amicably resolve the dispute
and indicated Prairie's right to submit the dispute to
international arbitration in the event of the dispute not being
resolved amicably. The dispute arises out of certain measures taken
by Poland in breach of the Energy Charter Treaty and the BIT. The
Company remains open to resolving the dispute with the Polish
Government amicably. However, as of the date of this announcement,
no amicable resolution of the dispute has occurred, since the
Polish Government has declined to participate in discussions
related to the dispute.
Prairie remains focused on trying to bring a swift settlement to
the current dispute with the Polish Government and remains open to
resolving the dispute amicably per the Notice of Dispute served on
served on Poland in February 2019. However, in the absence of any
meaningful engagement in relation to this matter from the
Government, the Company has advanced preparations to commence its
Claims to Arbitration over the coming weeks.
The quantum of any Claim for compensation may include, but will
not be limited to:
-- the value of Prairie's historic expenditure in developing
both the Jan Karski and Debiensko mines;
-- Lost profits and damages that the Company has suffered as a
result of Poland's acts and omissions which have resulted in the
expropriation of both the Jan Karski of Debiensko mines, which is
linked to the considerable Net Present Value of both mines at the
time of Poland's international treaty breaches; and
-- Accrued interest related to any damages award and all costs
associated with pursuing the Claims to Arbitration.
The Company is not able to make any further comment in relation
to the potential quantum of any claim for compensation at this
point.
Please refer to ASX announcements dated 26 April 2018, 28 May
2018, 18 January 2019, 13 February 2019, 4 April 2019 and 31
December 2019 for further details regarding the Company's dispute
with the Republic of Poland.
Prairie's investment dispute with the Republic of Poland is not
unique, with international media widely reporting that the
political environment and investment climate in Poland has
deteriorated since the change in Government in 2015. As a result,
there are a significant number of International Arbitration claims
being bought against Poland in the natural resources and energy
sectors with damages claims ranging from US$120 million to over
US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina
Copper (Copper) and Invenergy (wind farms).
Background to the Jan Karski Mine
The Jan Karski Mine (Jan Karski) is a large scale semi-soft
coking coal project located in the Lublin Coal Basin in south east
Poland. The Lublin Coal Basin is an established coal producing
province which is well serviced by modern and highly efficient
infrastructure, offering the potential for low capital intensity
mine development. Jan Karski is situated adjacent to the Bogdanka
coal mine which has been in commercial production since 1982 and is
the lowest cost hard coal producer in Europe.
Key benefits for the local community and the Lublin and Chelm
regions associated with the development, construction and operation
of Jan Karski have been recognised as the following:
-- creation of 2,000 direct employment positions and 10,000
indirect jobs for the region once operational;
-- increasing skills of the workforce through the implementation
of International Standard training programmes;
-- stimulating the development of education, health services and
communications within the region; and
-- building a mine that creates new employment for generations
to come and career paths for families to remain in the region.
In March 2016, Prairie released the results of a JORC compliant
Pre-Feasibility Study (PFS) for Jan Karski prepared by independent
international mining consultancies Golder Associates and Royal
HaskoningDHV. The PFS demonstrated the technical viability and
robust economics of Jan Karksi to be developed as a large-scale
long life strategic coal supplier. Further details about the PFS
are contained in the Company's announcement dated 8 March 2016.
Background to the Debiensko Mine
The Debiensko Mine (Debiensko), is a hard coking coal project
located in the Upper Silesian Coal Basin in the south west of the
Republic of Poland. It is approximately 40 km from the city of
Katowice and 40 km from the Czech Republic.
Debiensko is bordered by the Knurow-Szczyglowice Mine in the
north west and the Budryk Mine in the north east, both owned and
operated by Jastrz bska SpĆ³ ka W glowa SA, Europe's leading
producer of hard coking coal.
The Debiensko mine was historically operated by various Polish
mining companies until 2000 when mining operations were terminated
due to a major government led restructuring of the coal sector
caused by a downturn in global coal prices. In early 2006 New World
Resources Plc acquired Debiensko and commenced planning for
Debiensko to comply with Polish mining standards, with the aim of
accessing and mining hard coking coal seams. In 2008, the Polish
Ministry of Environment (MoE) granted a 50-year mine license for
Debiensko.
In October 2016, Prairie acquired Debiensko with a view that a
revised development approach would potentially allow for the early
mining of profitable premium hard coking coal seams, whilst
minimising upfront capital costs.
In March 2017, Prairie released the results of a JORC compliant
Scoping Study prepared by independent international mining
consultancy Royal HaskoningDHV. The Scoping Study demonstrated the
technical viability and robust economics for the fully permitted
Debiensko mine to be a large scale, lowest cost and long life
premium hard coking coal supplier. Further details of the Scoping
Study care contained in the Company's announcement dated 16 March
2017.
Share Purchase Plan
In July 2020, Prairie announced it is providing Eligible
Shareholders the opportunity to participate in the Company's share
purchase plan (Offer). The Offer will give Eligible Shareholders
the opportunity to apply for up to A$30,000 worth of New Shares at
an issue price of A$0.25 (PLN0.69) for each New Share (Issue Price)
without incurring brokerage or other transaction costs. Prairie
confirms that that Polish residents may participate in the Offer
using Polish z oty (PLN).
The Issue Price represents a discount of 25% to the closing
price of Shares on ASX immediately prior to 21 July 2020 (being the
date on which the Company announced the Offer).
The Company intends to raise A$4 million (approximately EUR2.5
million) from Eligible Shareholders and intends to use the proceeds
of the Offer for working capital requirements and business
development opportunities.
The Company reserves absolute discretion regarding the final
amount raised under the Offer. If the Company receives applications
in excess of A$4 million, the Company reserves the right to accept
oversubscriptions (subject to compliance with ASX Listing Rules and
the Corporations Act) in its absolute and sole discretion. However,
the Offer to investors in the European Union will not be increased
in excess of EUR2.5 million. The Company also reserves the right to
close the Offer early and scale back applications in its absolute
and sole discretion.
The Offer closes at 5:00pm (Perth time) on 14 August 2020 and
the Company encourages shareholders eligible to participate in the
Offer to lodge their application forms and/or remit their
application ponies as soon as possible as the Company will not
accept any late applications and reserves the right, subject to the
Corporations Act and the ASX Listing Rules, to vary the closing
date without prior notice, including closing the SPP early.
Participation in the Offer is optional. The issue of New Shares
is expected to take place on or around 21 August 2020.
Further details of the Offer are contained in the Company's
announcements dated 21 and 29 July 2020.
COVID-19 Update
The Company continues to actively evaluate the situation for all
risks to employees and general operational safety and will make any
required adjustments as the situation evolves, or as required by
governments. Following the introduction of COVID-19 pandemic
working/travel restrictions, the Company's activities in Poland
have been limited, however relevant meetings have been able to take
place, primarily via electronic means.
Forward Looking Statements
This release may include forward-looking statements. These
forward-looking statements are based on Prairie's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Prairie, which could cause
actual results to differ materially from such statements. Prairie
makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the
circumstances or events after the date of that release.
APPIX 1 - EXPLORATION TENEMENT INFORMATION
As at 30 June 2020, the Company has an interest in the following
tenements:
Location Tenement Percentage Status Tenement Type
Interest
------------------- ----------------------- ----------- -------------- ---------------------
Jan Karski, Poland Jan Karski Mine 100 In dispute(1) Exclusive Right
Plan Area (K-4-5, to apply for
K6-7, K-8 and K-9)(1) a mining concession
Debiensko, Poland Debiensko 1 100 Granted(2) Mining
Debiensko, Poland Kaczyce 1 100 Granted Mining & Exploration
(includes gas
rights)
------------------- ----------------------- ----------- -------------- ---------------------
Notes:
(1) In July 2015, Prairie announced that it had secured the
Exclusive Right to apply for a Mining Concession for Jan Karski as
a result of its Geological Documentation for the Jan Karski deposit
being approved by Poland's MoE. The approved Geological
Documentation covers areas of all four original Exploration
Concessions granted to Prairie (K-4-5, K6-7, K-8 and K-9) and
includes the full extent of the targeted resources within the mine
plan for Jan Karski. The K-4-5, K-8 and K-9 Exploration Concessions
expired in November 2018 but these were separate to and had no
bearing on the Company's access to land and the Exclusive Right
(tenure) to apply for a mining concession at Jan Karski, however as
noted below, this position is the subject of Prairie's Mining
Usufruct Agreement proceedings in front of the Civil Court and the
award of a mining concession of K6-7 to Bogdanka. As a result of
the Exclusive Right, Prairie was the only entity with a legal right
to lodge a Mining Concession application over Jan Karski for the
period up and until 2 April 2018.
The approval of Prairie's Geological Documentation in 2015 also
conferred upon Prairie the legal right to apply for a Mining
Usufruct Agreement over Jan Karski for an additional 12-month
period beyond April 2018, which should have precluded any other
parties being granted any licence/concession over all or part of
the Jan Karski concessions. Under Polish law, the MoE is strictly
obligated, within three months of Prairie making an application for
a Mining Usufruct Agreement, to grant the agreement. It should be
noted that the MoE confirmed Prairie's priority right in two
written statements (i.e. in a final administrative decision dated
11 February 2016 and in a formal letter dated 13 April 2016).
Prairie applied to the MoE for a Mining Usufruct Agreement over Jan
Karski in late December 2017. As of the date of this report the MoE
has still not made available to Prairie a Mining Usufruct Agreement
for Jan Karski, therefore breaching the three-month obligatory
period for the agreement to be concluded. Advice provided to
Prairie concludes that failure of the MoE to grant Prairie the
Mining Usufruct Agreement is a breach of Polish law. Accordingly,
the Company commenced legal proceedings, which remain ongoing,
against the MoE through the Polish courts in order to protect the
Company's security of tenure over the Jan Karski concessions. Since
the MoE has not provided a decision within three months regarding
Prairie's Mining Usufruct Agreement application, the Polish civil
court has the power to enforce conclusion of a Usufruct Agreement
in place of the MoE. In the event that a Mining Usufruct Agreement
is not made available to the Company on acceptable terms or the
Company does not enter into a Mining Usufruct Agreement for any
other reason, other parties may be able to apply for exploration or
mining rights for all or part of the Jan Karski concession
area.
In April 2018, the Civil Court approved Prairie's motion for an
injunction against the MoE, which prevented them from entering into
a usufruct agreement or a concession with any other party besides
Prairie. A decision by an Appeal Court in Warsaw has since
overturned the injunction in place against the MoE. Prairie
believes that the Appeal Court's decision is fundamentally flawed.
Prairie has now received official notification from the Polish
government that the K6-7 deposit, which forms an integral part of
Prairie's Jan Karski project, has been granted to Bogdanka. Despite
multiple applications by Prairie to the MoE to be admitted as a
party of interest to Bogdanka's K6-7 mining concession proceedings,
the MoE has denied Prairie the status of party of interest which
effectively prevents Prairie from appealing the award of the K6-7
mining concession to Bogdanka. These events provide further
evidence of the unfair and inequitable treatment faced by Prairie
as a foreign investor in Poland and these and other measures
directed against Prairie by the Polish government, with respect to
the Company's permitting process and licenses, have entirely
blocked Prairie's pathway to any future production from Jan Karski.
Prairie has formally notified the Polish government that there
exists an investment dispute between Prairie and the Polish
Government. The dispute arises out of certain measures taken by
Poland in breach of the Energy Charter Treaty and
the Australia-Poland Bilateral Investment Treaty as discussed
above. Prairie's notification calls for prompt negotiations with
the government to amicably resolve the dispute, and indicates
Prairie's right to submit the dispute and lodge a claim to
international arbitration in the event the dispute is not resolved
amicably. Prairie will continue to take relevant actions to pursue
its legal rights regarding Jan Karski. Prairie is currently working
with its lawyers (including international arbitration legal
experts) to prepare Notices of Arbitration for commencement of
international arbitration claim(s) against Poland in the coming
weeks.
(2) Under the terms of the Debiensko Mining Concession issued in
2008 by the MoE (which is valid for 50 years from grant date),
commencement of production was to occur by 1 January 2018. In
December 2016, following the acquisition of Debiensko, Prairie
applied to the MoE to amend the 50 year Debiensko Mining
Concession. The purpose of the concession amendment was to extend
the time stipulated in the Mining Concession for first production
of coal from 2018 to 2025. In 2018 Prairie received a final "second
instance" decision from the MoE that denied the Company's amendment
application. Prairie appealed this MoE decision to Poland's
Administrative Court and in November 2019 the Administrative court
ruled in Prairie's favour confirming that Prairie's concession
amendment application fulfilled all formal requirements under
Polish law and that the MoE was obliged to grant Prairie the
requested concession amendment. The court verdict indicated that
the MoE had not established legal grounds justifying rejection of
Prairie's amendment application. The MoE has now appealed this
decision to Poland's Supreme Administrative Court. Nevertheless,
Prairie also holds a valid environmental consent decision and
continues to have valid tenure and ownership of land at Debiensko.
Not meeting the production timeframe stipulated in the concession
does not automatically infringe on the validity and expiry date of
the Debiensko mining concession, which is June 2058. However, the
concession authority now has the right to request the concession
holder to remove any infringements related to non-compliance with
the conditions of the mining concession and determine a reasonable
date for removal of the infringements. Nevertheless, the actions of
the Polish government have effectively blocked any pathway to
production for Prairie at Debiensko therefore making it impossible
for the Company to continue with development at Debiensko. The
Company will consider any actions necessary to pursue its legal
rights regarding Debiensko. For this and other reasons, Prairie has
formally notified the Polish government that there exists an
investment dispute between Prairie and the Polish Government. The
dispute arises out of certain measures taken by Poland in breach of
the Energy Charter Treaty and the BIT. As noted above, Prairie is
currently working with its lawyers (including international
arbitration legal experts) to prepare Notices of Arbitration for
commencement of international arbitration claim(s) against Poland
in the coming weeks.
Appendix 2 : Related Party Payments
During the quarter ended 30 June 2020, the Company made payments
of $219,966 to related parties and their associates. These payments
relate to existing remuneration arrangements (director fees,
consulting fees and superannuation of $164,966) and the provision
of a serviced office and company secretarial and administration
services ($55,000).
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
-----------------------------------------------------
Prairie Mining Limited
ABN Quarter ended ("current quarter")
--------------- ----------------------------------
23 008 677 852 30 June 2020
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows
$A'000 (12 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (472) (2,222)
(b) development - -
(c) production - -
(d) staff costs (273) (1,001)
(e) administration and corporate
costs (158) (953)
1.3 Dividends received (see note - -
3)
1.4 Interest received 9 80
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
Other (provide details if
1.8 material)
(a) Business Development (25) (78)
(b) Property rental and gas
sales 171 431
(c) Arbitration related expenses (41) (280)
---------------- --------------
Net cash from / (used in)
1.9 operating activities (789) (4,023)
----- ----------------------------------- ---------------- --------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - (3)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) 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) - -
---------------- --------------
Net cash from / (used in)
2.6 investing activities - (3)
----- ----------------------------------- ---------------- --------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of equity
securities (excluding convertible
debt securities) - -
3.2 Proceeds from issue of convertible
debt securities - -
3.3 Proceeds from exercise of - -
options
3.4 Transaction costs related
to issues of equity securities
or convertible debt securities - -
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
Transaction costs related
3.7 to loans and borrowings (32) (32)
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- --------------
Net cash from / (used in)
3.10 financing activities (32) (32)
----- ----------------------------------- ---------------- --------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 3,384 6,620
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (789) (4,023)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) - (3)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) (32) (32)
Effect of movement in exchange
4.5 rates on cash held (1) -
---------------- --------------
Cash and cash equivalents
4.6 at end of period 2,562 2,562
----- ----------------------------------- ---------------- --------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 1,062 1,384
5.2 Call deposits 1,500 2,000
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 2,562 3,384
---- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 (220)
-----------------
6.2 Aggregate amount of payments to related
parties and their associates included in
item 2 -
-----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
7. Financing facilities Total facility
Note: the term "facility' amount at quarter Amount drawn
includes all forms of financing end at quarter end
arrangements available to $A'000 $A'000
the entity.
Add notes as necessary for
an understanding of the sources
of finance available to the
entity.
7.1 Loan facilities 17,800 -
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities 17,800 -
------------------- ----------------
Unused financing facilities available at
7.5 quarter end 17,800
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
---- ------------------------------------------------------------------------
During the quarter, the Company executed a Litigation
Funding Agreement ( LFA ) for A$17.8m (US$12.3m) with
LCM Funding UK Limited a subsidiary of Litigation Capital
Management Limited ( LCM ), to pursue damages claims in
relation to the investment dispute between Prairie and
the Polish Government that has arisen out of certain measures
taken by Poland in breach of the Energy Charter Treaty
and the Australia - Poland Bilateral Investment Treaty
( BIT ). LCM will provide up to US$12.3m (A$17.8m), denominated
in US$, in limited recourse financing which is repayable
to LCM in the event of a successful Claim or settlement
of the Dispute that results in the recovery of any monies.
If there is no settlement or award, then LCM is not entitled
to any repayment of the financing facility. In return
for providing the financing facility, LCM shall be entitled
to receive repayment of any funds drawn plus an amount
equal to between two and five times the total of any funds
drawn from the funding facility during the first five
years, depending on the time frame over which funds have
remained drawn, and then a 30% interest rate after the
fifth year until receipt of damages payments.
----
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (789)
8.2 (Payments for exploration & evaluation classified
as investing activities) (item 2.1(d)) -
8.3 Total relevant outgoings (item 8.1 + item (789)
8.2)
8.4 Cash and cash equivalents at quarter end 2,562
(item 4.6)
8.5 Unused finance facilities available at quarter 17,800
end (item 7.5)
-------
8.6 Total available funding (item 8.4 + item 20,362
8.5)
-------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 26
-------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
-------------------------------------------------------------------
Answer: Not applicable
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8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
-------------------------------------------------------------------
Answer: Not applicable
-------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
-------------------------------------------------------------------
Answer: Not applicable
-------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
---- -------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 July 2020
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [ name of
board committee - eg Audit and Risk Committee ]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations , the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLFIFELDIILVII
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July 31, 2020 02:00 ET (06:00 GMT)
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