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Ausmex Mining Group Limited (ASX:AMG) is an Australian based exploration and mining company. On 15th March 2019, the company announced its 1HFY19 results with updates on the current operations.
Operational review of Cloncurry exploration
The company continued with significant drilling and exploration field work in the second half of 2018. The exploration was primarily aimed at increasing the companyâs understanding of the Golden Mile exploration permits which adjoins the Mt Freda Mining Licence area. This project is a JV collaboration between Washington H. Soul Pattinson and Co. and Exco Resources. Drilling on this site has been focused on establishing a potentially large, and shallow mineral resources estimates in the series of historical mines that are located on the western edge of a large Tier 1 IOCG target. This area also has a deeper IOCG magmatic source which is capable of hosting significant high-grade epithermal gold.
Once the recent floods permit is acquired, management would look forward to continuing the drilling as high-grade assays for gold, copper and Cobalt have already been returned to date.
Burra South Australia
The company holds 15% exploration licence in South Australia in the Burra region. According to a report which was made in partnership with University of Adelaideâs (UoAâs) Institute of Mineral & Energy Resources (IMER), all future discoveries around Burra will involve deposits that are under âcoverâ. During the half year, the initial 10km grid MT Geophysical survey was completed. The program undertaken with the assistance of Adelaide university was successful in delineating deposit scale structures.
Financial Performance
The company reported a net loss of $2.34 million in 1HFY19 compared to the previously reported net loss of $3.93 million in 1HFY18. The reduction in loss was mainly affected by a decrease in share-based payment expenses which reduced from $351,653 in 1HFY18 to $218,010 in 1HFY19 and exploration expenses also reduced by more than 29% from 2.82 million to $1.99 million in the same period.
On the balance sheet front, the cash and cash equivalents decreased from $2.08 million as at 30th June 2018 to $1.43 million as at 31 December 2018. This reduction in cash was one significant factor in the reduction of the current assets to $1.72 million from $2.17 million in the same period. However, the long-term total assets marginally grew from $3.09 million as at 30 June 2018 to $3.49 million as at 31 December 2018. Exploration and evaluation assets grew from $2.76 million to $2.78 million in the same period. Apart from that, we have seen a decline in all non-current assets in the 1HFY19. Total assets stood at $5.19 million compared to the previously reported number of $5.26 million.
Liabilities have been more than doubled in the last six months. Major participation came from an increase in converting notes, Derivative liability and Trade and other payables. All of them contributed to an increase of more than 125% from $934,885 as at 30 June 2018 to $2.1 million as at 31 December 2018.
On 4th March 2019, the company declared its commencement of next phase at Burra.
The stock plunged more than 16% and closed at A$0.13 as of 15th March 2019, compared to the previous closing of A$0.155. Today, 18 March, the stock is trading flat at A$0.13 (As at 2:50 PM AEST). In the last month, the stock has surged by more than 113%.
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