On 25 January 2019, Astron Corporation Limited (ASX: ATR) announced its production and exploration report for the quarter ended 31 December 2018. By the end of December quarter 2018, the company highlights that there were no production activities at its Donald Project (Donald Mineral Sands Project or DMS).
During the period, Donald Mineral Sands Project completed the technical aspects of the optimization of the feasibility study. The initial indication from the feasibility study states the improvement from the updated technical aspects. It also says that the use of Chinese equipment will be positive. The company will soon be announcing the updated feasibility study report.
Earlier on 3 July 2018, the EPC contract between DMS and the China Machinery Engineering Corporation got expired. In spite of that, Astron Corporation Limited is under discussion with CMEC regarding its DMS project funding options as well as its progress.
For the December quarter ending 31 December 2018, the company used $131,872 in the development activities ($237,844 for FY 2018). There was no expenditure on production activities.
The company also highlighted the activities for its Niafarang Project during the December 2018 quarter. During the period, there were no production activities at the project. However, after receiving the mining license on 8 June 2017, the commencement of activities will be in 2019. For the development activities of Niafarang Project, the company used $142,611 during the quarter ($247,525 for FY 2018).
Another update from the company during the period was that the company was successful in acquiring 55,000 tons low-grade TiO2 (titanium oxide) feedstock. ATR is currently working on commissioning of the processing plant for this low-grade TiO2.
ATR has delivered a negative performance of 45.84% since its inception. The company’s stock has delivered a return of 15.54% over last the five months with a 4.76% negative return during last one year.
As per the annual report of ATR for FY2018, which ended on 30 June 2018, ATR made a net loss of $4,670,747. The balance sheet of the company reported a net asset base of $99,808,431 and a debt to equity ratio of 0.17 indicating a stable financial position of the company to meet the long-term obligations. A low debt to equity ratio during the period highlights the company tried to use its resources instead of taking financial support in the form of debt. The position of the total current asset and the total current liabilities states that the company will somehow manage its working capital and short-term debt. The total shareholders’ equity is worth $99,808,431.
By the end of FY2018 on 30 June 2018, Astron Corporation Limited had net cash and cash equivalent worth $3,167,548.
By the end of trading on 25 January 2018, the closing price of the ATR share was A$0.200 with a market capitalization of $24.5 million.
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