- Lindian Resources (LIN) has ended the June quarter with $600,000 in the bank, after spending $316,000 on operating activities
- The company spent the quarter focused primarily on progressing its Gaoual Bauxite Project in Guinea
- Lab work showed the deposit contained high alumina grades, with a subsequent mineral estimate of 102 million tonnes at 49.8 per cent aluminium oxide
- Lindian also recorded some changes in management during the three months to June 30, with its Managing Director stepping down and the appointment of a new Non-Executive Director
- The company has also announced it will defend its stake in the Malawi project, with an out of court settlement offer now on the table
- Shares in Lindian are trading grey at 1.4 cents per share
Lindian Resources (LIN) has reported a steady June quarter, which focused on progressing the Gaoual Bauxite Project and ended with $600,000 in the bank.
Examining the finances
Today’s release of the June quarterly report shows the mining company spent $316,000 on operating activities during the period.
The majority of that went towards staff and admin costs with only $16,000 spent on exploration activities. But, $147,000 was also invested in acquiring or exploring its existing projects.
Lindian started the June quarter with $1.07 million in cash in the bank and ended the quarter with $600,000. That’s enough to keep the company going for at least one more quarter.
But, the company isn’t worried, as it expects operating costs to decrease in the coming quarters and flagged a possible capital raise. It also said this quarter was weighed down with outgoing payments to its now departed managing director.
Project update
Along with the financial update, Lindian said it spent the majority of the June quarter focused on “demonstrating the value” of its Gaoual conglomerate bauxite asset on the Bouba plateaux in Guinea.
In May this year, the company revealed recent lab work had demonstrated very high alumina grades were found amongst tested Bouba North and South extensions at the project.
The lab grades formed the basis of a maiden resource for the project, which was released this month. The total JORC compliant resource estimate for the Bouba Plateaux stands at 102 million tonnes at 49.8 per cent aluminium oxide.
Lindian Chairman, Asimwe Kabunga, said it was very pleasing to demonstrate the project’s future potential.
“This has confirmed our belief in the quality of our Gaoual Project, with the very high alumina grades and overall bauxite quality being superior to the product currently being sold in the international markets,” Asimwe said.
“The project’s location near other major producing mines and their associated infrastructure, places the company in a good position to progress the project through to production,” he said.
Management changes
The June quarter also marked a number of changes within Lindian’s leadership team, with Managing Director, Shannon Green, resigning in May due to personal reasons.
The Board has since begun searching for a new CEO or MD to lead the company, but no appointment has been made at this stage.
Two new faces have been added to the management team though, with Giacomo (Jack) Fazio appointed as a Non-Executive Director in June, while Yves Occello was also appointed as a Non-Executive Director in July.
Looking ahead
Following the end of the June quarter, Lindian announced it would fight to maintain its 75 per cent stake in the Kangankunde Rare Earths Project, by appealing a High Court decisionon their case against Michael Saner and Rift Valley Resource Developments.
The appeal appears likely to be shelved though, as the company has since received an out of court settlement offer from RVR and Saner.
Shares in Lindian Resources are trading grey at 1.3 cents each at 2.24 pm AEST.