On 31 January 2019, Elementos Limited (ASX: ELT) has announced the positive results from the preliminary (First Inspection) test work conducted on ore pre-concentration from samples collected from the recently acquired Oropesa Tin Project. Oropesa Tin Project is situated in Spain, and this test work is conducted by TOMRA Sorting Solutions – Mining.
The primary objective of pre-concentration is to remove dilution from the ore, whether it is internal or external, that has occurred during the mining and transportation process.
TOMRA Sorting Solutions designs and manufactures sensor-based technologies which are used in the global mining industry. The selected sensing technique for the material was the X-ray transmission sensor (COM Tertiary XRT sorter).
The company provided a total of 135 drill core samples to TOMRA so that they can conduct initial test work. The samples were representatives of the potential different host rocks, grade, and weathering.
The results of the test Programme indicated that the sensor was able to detect differences between the low, medium and high-grade samples, with a clear distinction between the low-grade and high-grade particles due to a high difference in density.
Due to positive First Inspection results, TOMRA has suggested that the company advance the test Programme to a Performance Test. A bulk sample is currently being collected and transported to TOMRA in Hamburg for the Performance Test. It is expected that this test work will be carried out in March 2019.
In its recently released December Quarter Update, the company stated that it has received interest of AUD 3,000, and till a year to date (6 months) it amounted to AUD 5,000. The company’s reported administration and corporate costs, exploration & evaluation, and staff costs for the December quarter stood at A$ 288,000, A$ 55,000, A$ 180,000 respectively, whereas the same was reported as A$ 401,000, A$ 84,000, A$ 330,000 respectively for the year to date.
The company’s proceeds from issues of shares for the December quarter stood at AUD 1200,000. The company’s reported transaction costs related to issues of shares, convertible notes or options for the December quarter stood at AUD 84,000 whereas the same was reported as AUD 90,000 for the year to date.
For the March quarter, the company is anticipating posting administration and corporate costs, exploration & evaluation, and staff costs amounting to AUD 150,000, AUD 150,000, AUD 180,000 respectively. So total estimated cash outflows will be AUD 480,000.
The company also mentioned that the interim completion of the arrangement agreement (under which the company is to acquire the Oropesa Tin Project) has occurred. ELT has completed a $ 1.2 million capital raising. This fund will support the completion of the Oropesa transaction and general working capital purposes on the 9th November 2018.
FY18 Financial Performance: The Company’s total comprehensive loss for the year stood at $ 819,933in FY18, (over the prior year’s loss of $ 769,493). The diluted loss per share amounted to 0.07 cents per share in FY18.
On Balance Sheet front, Net Assets were $6,212,845 in FY18, (over the prior year which was $4,795,541).
As at 30 June 2018, ELT had maintained the cash and cash equivalent of $936,562 (over the prior year which was $655,868).
Looking at Elementos Limited’s stock performance and the return it has posted over the last few months, the stock has generated a positive return of 20% during the past six months. It is currently trading at $0.006 (at the close of the market on 31 January 2019). The company has approx. 1.54 billion shares outstanding with the market cap of circa $9.22 million.
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