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Gulf Manganese Corporation Limited (ASX: GMC) is a metals and mining company based in Western Australia. The company is aiming at establishing a ferromanganese smelting business in West Timor, Indonesia. After being fully operational, it will produce up to 155,000 tonnes of manganese alloy per annum to cater to the high-demand Asian markets.
Approval of export licence:
On 8th May 2019, the company announced its Indonesian subsidiary PT Gulf Mangan Grup (GMG) has received the approval of its application for a license to export manganese concentrate in the form of direct shipping ore or high-grade manganese ore for the total export limit of 103,162 tonnes per year. GMG was informed about this approval on 7th May 2019 from MEMR (Ministry of Energy and Mineral Resources).
Now, a final authorisation from the Ministry of Trade (MoT) is required for which the documents were lodged on 7th May 2019. According to MoT, approval usually takes 2 to 5 working days.
Key personnelâs statement:
Hamish Bohannan, Managing Director of Gulf, said that the approval of direct shipping ore license by MEMR, which is the main approving body in the Indonesian government, was an important milestone for the company.
Cornerstone Investor Update:
On 1 May 2019, the company had signed two Subscription Agreements with PT Jayatama Global Investindo (PT JGI) and Singco (as announced on 16th January 2019), which were revised on 29 March 2019, for the extension of Tranche 2 (T2)âs cut-off date, mentioned under the agreements to 30 April 2019. It would enable more time for GMG to receive the DSO, which was a condition precedent to the funding of T2 (as announced on 29 March 2019).
These agreements were to provide a total of $8 million in two tranches. The company had already received A$3.6 million from the first tranche of investment, and the remaining A$4.4 million is due on second tranche (T2).
Since the date of T2 Cut Off Date under the Agreements has been extended to 30th April 2019, the listed T2 options that would have been issued to JGI and Singco expiring on 21st April 2019, it will be now, replaced with the same number of similar but unlisted options, at the same exercise price of $0.005 with an expiry date of 31st January 2020.
March 2019 Quarterly report:
Operational Highlights
- The company had raised in excess of A$2.3 million through the conversion of 0.5c listed options into ordinary fully paid shares.
- PT JGI A$6 million convertible note restructured into 25.1% of the issued capital in GMG.
- PT JGI to invest an additional A$6 million at 1.5 cents per share with a free attaching 0.5 cent listed option on a one for one basis, expiring 21st April 2019.
Cashflow statement:
The company reported net cash used in the operating activities at A$1.84 million. Also, Net cash from financing activities stood at A$0.39 million.
At the end of the quarter, the company reported net cash of A$428,000. The company has also estimated the cash outflow of A$800,000 for the next quarter.
Technical outlook:
The stock of the company is currently trading at A$0.006 (as on 8 May 2019, 3:11 AEST), up by 20%. The market capitalisation of the company is A$18.98 million. The 52-week high and low of the stock is A$0.023 and A$0.004 respectively. The stock traded at an intraday high of A$0.006, as on 8th May 2019. In the last one year, the stock has delivered a negative return of 58.3%, and the YTD return stands at negative 50%.
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