Flinders Mines Withdraws Its Delisting Application, Shares Surged On ASX Post Announcement

Flinders Mines Withdraws Its Delisting Application, Shares Surged On ASX Post Announcement

Flinders Mines Limited (ASX: FMS) is into the metals and mining sector. The company is focused on developing the Pilbara Iron-Ore Project. It is engaged in the exploration operations of iron, gold and base metals.

The company today, on 10th April 2019, announced that the Board of Flinders has resolved to withdraw its 19 March 2019 revised delisting application to the Australian Securities Exchange, considering the views expressed by the shareholders. The company will now have a relook at its future strategy and provide an update to shareholders in due course.

On the financial front, the company reported a loss of $3,409,000 for the half year ended 31 December 2019 as compared to a loss of $967,000 in the prior corresponding period of 2017. FMS reported total assets of ~$63.82 million in 1H FY19 as compared to ~$62.31 million in the previous half of the year.

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The net cash outflow from operating activities stood at ~$1.75 million as compared to ~$0.82 million in the previous corresponding period. Also, the net cash outflow from investing activities was at ~$1.95 million in 1H FY19 as compared to ~$7.60 million in 1H FY18. Further, the cash inflow from the financing activities amounted to ~$3.23 million in 1H FY19 as compared to ~$2.98 million in 1H FY18. The cash and cash equivalents at the end of the period stood at ~$2.81 million in 1H FY19 compared to ~$4.62 million in the prior corresponding period of 1H FY18.

On 15th March 2019, the company announced that it had executed a variation to the Loan Agreement previously announced on 20th February 2019, with a subsidiary of its major shareholder, TIO (NZ) Limited. The terms of this loan included an unsecured loan amount of up to $32.9 million, with use of proceeds being to fund a proposed buy-back of up to $25.3 million, plus working capital of $3.0 million and potential company tax associated with the buy-back of up to $4.6 million. The capitalised interest is at a rate of BBSW plus a 2% margin with a term till 30 June 2022.

In January 2019, the company completed applications to the Takeovers Panel and on 20 February 2019, the company released to the ASX, the conclusion of the panel proceedings. The company and its major shareholder, TIO (NZ) Limited, agreed to a set of undertakings to proceed with the proposed delisting, subject to formal ASX approval (“Revised Delisting”). The EGM scheduled for 22 January 2019, was cancelled as a result of the undertakings given by the company.

In another report, the company has informed about its upcoming EGM on Wednesday May 8, 2019.

On the price-performance front, the stock of Flinders Mines Limited, at market close on 10th April 2019, was trading at A$0.043, an increase of ~10.256% during the day’s trade and with a market capitalisation of ~A$135.92 million. The stock has generated a YTD return of 8.33% with returns of -50.0% and 56.0% over the past six months and three months period, respectively. Its 52-week high price stands at A$0.114, and 52-week low price stands at A$0.025 with an average trading volume of 268,017.


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