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Australian Mines (ASX:AUZ) releases September quarterly report

Materials
ASX:AUZ      MCAP $13.98M
20 October 2020 15:00 (AEST)
Australian Mines (ASX:AUZ) - Managing Director, Benjamin Bell

Source: Master Investor

Battery materials development company Australian Mines (AUZ) has released its September quarterly financial and activities report.

The figures show the business ended September 30 with around $7.2 million worth of cash in the bank after carrying out a successful $5.2 million placement.

Australian Mines also burnt through $1.07 million on operating activities, meaning if spending remains consistent, it’s well funded for another four quarters.

Looking at the company’s activities over the quarter, AUZ remained focused on its Sconi Cobalt-Nickel-Scandium Project in North Queensland.

Currently, Australian Mines is working to secure offtake partners for Sconi — its cobalt producing nickel operation.

AUZ said COVID-19 had delayed the much-anticipated Battery Day by Tesla, but now that it had concluded, interest for battery materials was ramping up.

As a result, the company is confident a growing demand for both electric vehicles and clean energy storage will underpin Sconi’s future success.

“The company is committed, focused and in a strong position to take advantage of the expected increase in global demand for nickel and cobalt, being the essential commodities used by EV battery makers,” AUZ Managing Director Benjamin Bell said.

“We are continuing to engage, as the current global situation dictates, with a range of potential offtake parties to ensure that all due diligence conditions are satisfied. This will allow offtake discussions to progress beyond the current stage and into formal contracts,” he added.

Another highlight for Australian Mines during Q1 was its Carbon Neutral certification from the Australian Government.

The certificate means AUZ is the first minerals resources company to be certified under the Government’s Climate Active program.

Following the quarterly report, shares in Australian Mines are trading for 1.5 cents per share, up 7.14 per cent at 1:59 pm AEDT.

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