On 23 April 2019, the mining company Elementos Limited (ASX: ELT) announced that it had obtained around $1,48,000 from the ATO. The amount gained is in connection to an R&D Incentive Claim for the 2017-2018 fiscal year.
The claim envelopes test work within the Federal Government’s R&D tax incentive scheme. Under the scheme, the companies with a turnover of the amount standing lesser than $20 million, undertaking activities related to research and development, are entitled to a cash refund of 43.5 cents per dollar spent on eligible research and development in the Australian region. ELT’s research work concentrates on developing more efficient procedures for recovering tin by applying existing technologies.
Mr Chris Creagh, CEO, ELT commented that the incentive offeres direct help to firms like ELT so that they carry on their research and development programs, which would result in creating value for the shareholders. He also said that receiving the R&D refund amount would solidify ELT’s financial position and would offer technical details which it can utilise to tin projects of the company.
On 17 April 2019, the company announced that it had issued 7 million fully paid ordinary shares on conversion of Performance Rights.
On the same day, the company notified the market that it has secured the grant of maximum $2 million loan facility, for a maximum time period of 2 years, from its biggest shareholder and Non-executive Chairman Mr Andy Greg.
On 28 March 2019, ELT published its Investor Presentation for Australian Energy & Minerals Conference, Brisbane. In the presentation, the company mentioned the Elementos Project Growth Plan, Corporate Overview, Global Tin Outlook, Oropesa Tin Project, Cleveland Tin Project and Temengor Tin Project.
On its growth and development strategy front, the company mentioned that an interim completion of an Arrangement Agreement for the acquisition of Oropesa and acceleration of the DFS had been done. Also, the diamond drilling at Cleveland and the definition of an improved JORC Resource for the open pit project had taken place. The company also mentioned about the negotiation of Farm-in and Joint Venture Agreement on Temengor.
In its half-yearly report for the period ending on 31 December 2018, the company recorded the loss for the period attributable to members of the parent entity, standing at $0.97 million from $0.44 million in the previous corresponding period (pcp).
From the balance sheet perspective, on 31 December 2018, the total assets stood at around $6.79 million, and the net assets stood at $6.6 million. From the cash flow perspective, on 31 December 2018, the net cash used in operating activities stood at $0.65 million from $0.44 million in the pcp. The cash used in investing activities of the company was recorded at $0.16 million from 0.44 million in the pcp. The net cash provided by financing activities of ELT stood at $1.14 million from $1.27 million in the pcp. The company’s cash at the end of the period stood at $1.26 million from $1.06 million in the pcp.
During the half-year period, ELT’s major work included: procurement of the Oropesa Tin Project, advancing the Cleveland Tin Project in the direction of a fresh development proposal and progression of the procurement of the Temengor Tin Exploration Project situated in Malaysian region.
The stock of the company traded flat during the day’s trading session and closed at a price of A$0.005 on 23 April 2019.