Orion Minerals said on Tuesday that though the past year was challenging, and despite ongoing challenges associated with the Covid-19 pandemic, it had taken major steps toward realising its vision of becoming a substantial diversified base metals producer.
This was at an extremely opportune time in the demand cycle for future-facing metals.
In its annual report released on Tuesday, Orion said it continued with its strategy of building and becoming a new-generation Australian-South African mining company focused on the development of its portfolio of advanced “green” metals projects in South Africa’s Northern Cape province.
“This includes our 70%-owned development-ready and fully permitted Prieska Copper-Zinc Project, the Jacomynspan Project, and the Okiep Copper Project, consolidated 56% to 100% ownership, an advanced, district-scale project which is rapidly emerging as our second base metals production hub in the same region,” the group said.
During the financial year, Orion had successfully raised more than $31 million, including a strongly supported two-tranche placement of $6.2m in late 2020 and a landmark $25m capital raising in February 2021, supported by leading Australian and global institutions, high net worth and strategic investors.
“This second raising was one of the largest single financings ever completed by a South African-focused junior resource company on the ASX (Australian Securities Exchange). With a strengthened balance sheet, the company remains resolutely focused on bringing the Prieska Copper-Zinc Project into production at the earliest opportunity. We are continuing to engage positively with a wide range of financing groups and institutions, and we are confident that we will achieve a positive funding outcome in late 2021/early 2022,” it said.
Orion said its main activity was exploration, evaluation and development of base metals, gold, and platinum group elements projects in South Africa, and as such it did not have a source of income but was rather reliant on debt and/or equity raising to fund its activities.
“During the reporting period, the company raised A$2.6 million before costs to fund exploration and development of its projects, primarily in South Africa. Net cash used in operating activities and investing activities totalled A$17.9m and included payments for exploration and evaluation of A$13.2m, while in 2021, it was A$6.8m, principally related to the development of the Prieska Project, Okiep Copper Project, and exploration within Orion’s Areachap Projects, South Africa,” it said.
The group reported that operating loss increased to A$15.53m. Basic loss per share increased to A$0.33, while headline loss per share increased to A$0.33.
BUSINESS REPORT