Talisman Mining Limited (ASX: TLM) which is an Australian based company is in the business of mineral development and exploration. On 8th March 2019, the company updated its half-yearly report regarding its operations. The company recently signed a Conditional Share Sale Agreement with Sandfire Resources NL to acquire Talisman Pty Ltd, the subsidiary which held Talisman’s 30% interest in the Springfield Joint Venture.
Some important terms for the agreement included;
- Talisman to retain an ongoing 1% Net Smelter Return royalty payable on 100% of any copper and gold extracted from the Springfield Joint Venture tenure above the Monty mine plan.
- As a result of transaction completion, Talisman received net proceeds of $58.15 million from Sandfire.
- Talisman A’s budgeted capital contributions to the Springfield Joint Venture to be funded by Sandfire for the period from 5 June 2018 to completion.
In December, the company paid fully franked special dividend of 6.375 cents per share which amounted to a total dividend pay-out of $11.8 million from the amount of $58.15 million coming in from the net proceeds of Share Sale Agreement. The company is also in the process of distributing additional $17.2 million (total amounting to $29 million) to the shareholders in the form of return of part of the paid-up share capital by way of an equal reduction of capital according to the Corporations Act (Capital Return). After making the Capital Return, the company will have returned cash of 22 cents per share ($40.8 million out of $58.15 million) to shareholders.
The Lachlan Copper-Gold Project which covers 3,181km2 area of exploration tenure, has the potential to host a variety of deposit types including low sulphation epithermal gold and base metal deposits, structurally controlled gold deposits, structurally controlled copper deposits, Cobar style gold and base metal deposits, as well as Skarn deposits. Multiple exploration targets have identified that have the potential to host significant gold or base metal mineralisation.
Sinclair Nickel Project
The company continued to advance exploration at Sinclair Nickel Project which offers an exceptional Australian nickel sulphide exploration opportunity. It is advancing through cost-effective staged exploration which is focused on priority target areas.
Financial result for the half-year ended 31st December 2018
The company reported a total comprehensive profit of $50.45 million in 1HFY19 compared to the previously reported loss of $3.60 million in 1HFY18. The major contributing factor to the profit was the profit after tax (PAT) from discontinued operations which stood at $55.85 million as compared to net loss of $724,000 in the same period.
The overall net profitability has also increased the basic earnings per share (EPS) from continuing and discontinued operations which stood at 27.17 cents per share in 1HFY19 compared to the negative EPS of 1.94 cents per share in 1HFY18.
Total assets have increased significantly from $39.04 million in 2HFY18 to $60.97 million in 1HFY19, an increase of more than 56% whereas the total liabilities have decreased from $27.40 million to $10.65 in the same period.
The stock price closed down by 4.49% at A$0.085 on 8th March 2019 compared to the previous closing of A$0.089. The stock has given an impressive return on more than 23% in the last one month with the current YTD return of 26.14%.
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