- Empire Resources Limited reported profit from ordinary activities after provision for income tax of $422,038 for the year ended 30 June 2020.
- ERL’s financial assets in NTM Gold Limited grew by $2,193,431, resulting in 256% growth in the current assets of ERL to $4,631,702.
- ERL’s expenditure on exploration at Yuinmery project increased by 436% to $846,643 during FY20, indicating aggressive exploration activities undertaken at the project.
- ERL has scheduled its AGM to be held on 4 November 2020 in Perth.
Mineral exploration and resources investment company, Empire Resources Limited (ASX:ERL) has released its annual report for the period ended 30 June 2020.
As compared to a loss of $1,323,987 in FY19, ERL’s profit from ordinary activities after provision for income tax stood at $422,038 for the period. Another eye-catching number in ERL’s financials is the growth of $2,193,431 in its financial assets in NTM Gold Limited (ASX:NTM) on 30 June 2020.
The Company had been principally engaged in mineral exploration and evaluation of properties in Australia during the period. Moreover, ERL is focussed on exploration and developmental activities through its two highly prospective projects located in the prolific Eastern Goldfields Region of Western Australia.
Exploration Expenditure at Yuinmery Increases By 436%
The company had been advancing exploration activities at its highly prospective projects. The Company’s expenditure on exploration increased by 436% to $846,643 during FY20. This expenditure was primarily attributable to the drilling program at Yuinmery Copper-Gold Project.
The recent highly encouraging Cu-Ni-PGM results returned from drilling at Yuinmery offer a significant growth opportunity for Empire Resources. The Yuinmery project has been progressively delivering excellent exploration results with PGE’s observed in historically high concentrations to the west of the. Smith Well Prospect
Furthermore, identification of a broad zone of palladium and platinum metals at the YT01 Prospect validates ERL’s belief in the excellent opportunity offered by the Yuinmery Project. Moving ahead, ERL intends to continue the advancement of its exploration efforts at Yuinmery as well as Penny’s Gold project.
ERL’s Unsecured Loan And Prospectivity At Penny’s
Moreover, as an effect of 7.5% interest on an unsecured loan of $1.5 million from an entity associated with Dr Michael Ruane (Non-Executive Chairman), ERL reported an interest expense of $110,651 in FY20.
In addition to these expenses, ERL incurred legal fees in connection to the EGMS dispute of $190,808, which was recognised as care and maintenance expense for the Penny’s Find mine Project.
ERL’s drilling efforts during the year indicated strong potential for the project to host structurally controlled gold mineralisation compared to the Penny’s Find open pit mine, which is now excluded from the Project area.
ERL is of the view that gold mineralisation at the Penny’s occurs within a lower order northwest-trending shear intersecting with a northerly trending structure.
ERL’s Current Assets Increased By 256%
As an effect of the sale of FYI Resources shares and NTM shares for $109,800, cash outflow from investing activities stood at $119,800. Moreover, share placements of $1,372,415 net of share issue costs resulted in cash inflows from financing activities of $1,372,415.
The cash flow statement of the Company indicated a cash balance of $598,047 at the end of the period.
Over the year, Empire had been progressively engaged in assessing opportunities in the Eastern Goldfields of Western Australia that complement its current portfolio of assets. During the quarter, the Company assessed several prospective projects.
At the end of FY20, ERL’s current assets increased by 256% to $4,631,702 compared to $1,299,466 in FY19, primarily driven by the growth in value of its investment interest in NTM Gold Ltd.
AGM To Be Held in November
ERL’s excellent exploration results and overall exploration activities continue to add value to its projects while its interests continue to offer prospective for non-dilutive as well as significant revenue in due course.
Overall, ERL’s highly experienced team of exploration, development and financial professionals facilitates the Company in obtaining value from direct exploration in its existing projects and identifying investment opportunities that add value to its existing portfolio.
ERL has scheduled its annual general meeting to be held on 4 November 2020 in Perth. ERL share price remained unchanged at $0.013 on 18 September 2020 with a market capitalisation of $ 11.81 million.
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