Terramin Australia Limited (ASX: TZN) is an ASX listed metals and mining company, located in Fullarton, South Australia. The company explores and mines both the base and the precious metals with high prospective zinc and gold projects in Algeria and South Australia. Some of the company’s projects are Angas zinc mine, The Bird-in-Hand Gold Project, The Tala Hamza Zinc Project etc.
In the recent presentation of March 2019 quarter, the company updated about the financial performance and operational updates. Top three largest shareholders of the company as of 31st March 2019 are Asipac Group Pty Ltd (owns 33.18%), Citicorp Nominees Pty Ltd (owns 15.44%) and Tronic Enterprise Development Ltd (owns 10.62%).
The Tala Hamza Zinc Project also came into the limelight in the presentation. The project is in the heart of the Mediterranean and has an estimated mine life of 21 years. The company owns 65% of the project with a joint venture with Western Mediterranean Zinc Spa (WMZ). The project has robust economics with the potential to optimise from already identified expansion cases. Apart from this, other projects were also discussed in brief.
On April 4th April 2019, the company disseminated information regarding the completion of its final phase of the Managed Aquifer Recharge (MAR) trial. The MAR program is a $1.1 million trial of the water management system for the reopening of the Bird-in-Hand Mine. MAR is an internationally recognised technology and is used in more than 50 locations in urban and regional South Australia. The recent trial has further indicated the groundwater modelling, developed in the last five years, is fit for purpose and further confirms the site’s flexibility to MAR as a water management solution.
In January 2019, the company had acquired 100% of Private Mine No 53 from Kitticooler Holdings Pty Ltd, around the same time when the gold price in Australia was near a record high.
In the 2018 full year financial results, the company reported a net loss after adjusting for tax benefits of $6.01 million, which is almost double of $3.18 million loss in 2017. The major contributors of the net loss were finance costs, exploration and evaluation expenses, and employee benefits expense etc. However, the comprehensive loss was little lower at $4.67 million majorly due to foreign currency translation differences for foreign operations. The basic earnings per share increased from 0.16 cents per share in 2017 to 0.30 cents per share in 2018.
On the balance sheet front, total assets stood at $72.53 million in 2018 compared to $71.59 million in 2017. The liabilities increased from $19.68 million to $25.18 million in the same period.
On the cash flow side, the company saw heavy outflows in 2018. Cash outflow from investing activities stood at $4.42 million whereas the investing activities led to the outflow of $2 million. Only the financing activities have seen an inflow of $3.99 million. At the end of the year, the company is left with less than 10% cash at $252,000 compared to $2.69 million of cash in 2017.
The stock of the company last traded at a price of A$0.080 as on 26 April 2019. The company has a market capitalization of A$168.26 million with circa 1.87 billion shares outstanding. In the past 12 months period the stock has generated a negative return of 35.71%. However, in the last 5 years period the stock has given a return of 136.84%.