MMN macmin silver ltd

3rd quarter cash flow

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    Headline: Third Quarter Cashflow Report Print this page
    ASX Code: MMN
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    MACMIN SILVER LTD 2003-04-30 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    APPENDIX 5B
    MINING EXPLORATION ENTITY QUARTERLY REPORT

    Name of entity
    Macmin Silver Ltd

    ABN Quarter ended ("current quarter")
    056 776 160 31/03/2003

    CONSOLIDATED STATEMENT OF CASH FLOWS

    Cash flows related to Current Year to date
    operating activities Quarter (3 months)
    AUD'000 AUD'000
    1.1 Receipts from product sales
    and related debtors - -
    1.2 Payments for
    (a) exploration and evaluation (166) (1,199)
    (b) development - -
    (c) production - -
    (d) administration (232) (843)
    1.3 Dividends received - -
    1.4 Interest and other items of
    a similar nature received 30 69
    1.5 Interest and other costs of
    finance paid - -
    1.6 Income taxes paid - -
    1.7 Other (provide details if material)
    * IPO Costs TasGold Ltd (157) (157)

    Net Operating Cash Flows (525) (2,130)

    Cash flows related to investing activities
    1.8 Payment for purchases of:
    (a) prospects - -
    (b) equity investments - (300)
    (c) other fixed assets (9) (76)
    1.9 Proceeds from sale of:
    (a) prospects - -
    (b) equity investments - -
    (c) other fixed assets - -
    1.10 Loans to other entities - -
    1.11 Loans repaid by other entities - -
    1.12 Other (provide details if material) - -

    Net investing cash flows (9) (376)

    1.13 Total operating and
    investing cash flows (534) (2,506)

    Cash flows related to financing activities
    1.14 Proceeds from issues of
    shares, options, etc. 4 1,751
    1.15 Proceeds from sale of
    forfeited shares - -
    1.16 Proceeds from borrowings - -
    1.17 Repayment of borrowings - -
    1.18 Dividends paid - -
    1.19 Other (provide details if material) - -

    Net financing cash flows 4 1,751

    Net increase (decrease) in cash held (530) (755)

    1.20 Cash at beginning of quarter/
    year to date 2,463 2,688

    1.21 Exchange rate adjustments to item 1.20 - -

    1.22 Cash at end of quarter 1,933 1,933


    PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
    PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES

    Current Quarter
    AUD'000

    1.23 Aggregate amount of payments to
    the parties included in item 1.2 125

    1.24 Aggregate amount of loans to the
    parties included in item 1.10 Nil

    1.25 Explanation necessary for an understanding
    of the transactions

    Directors: salaries and consulting fees

    NON-CASH FINANCING AND INVESTING ACTIVITIES

    2.1 Details of financing and investing transactions which have had a
    material effect on consolidated assets and liabilities but did
    not involve cash flows

    -

    2.2 Details of outlays made by other entities to establish or
    increase their share in projects in which the reporting entity
    has an interest

    -


    FINANCING FACILITIES AVAILABLE
    Add notes as necessary for an understanding of the position.

    Amount Amount
    available used
    AUD'000 AUD'000

    3.1 Loan facilities - -
    3.2 Credit standby arrangements - -


    ESTIMATED CASH OUTFLOWS FOR NEXT QUARTER AUD'000

    4.1 Exploration and evaluation 300
    4.2 Development -

    Total 300


    RECONCILIATION OF CASH

    Reconciliation of cash at the end Current Previous
    of the quarter (as shown in the quarter quarter
    consolidated statement of cash flows) AUD'000 AUD'000
    to the related items in the accounts
    is as follows.

    5.1 Cash on hand and at bank 205 239
    5.2 Deposits at call 528 224
    5.3 Bank overdraft - -
    5.4 Other (provide details)
    Fixed Term Deposits 1,200 2,000

    Total: cash at end of quarter (item 1.22) 1,933 2,463


    CHANGES IN INTERESTS IN MINING TENEMENTS

    Tenement Nature of Interest at Interest
    reference interest beginning at end of
    (note(2)) of quarter quarter

    6.1 Interests in
    mining tenements
    relinquished,
    reduced or lapsed - - - -

    6.2 Interests in
    mining tenements
    acquired or
    increased - - - -


    ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD
    Description includes rate of interest and any redemption or
    conversion rights together with prices and dates.
    Amount
    Issue Paid-up
    price per per
    security security
    (see (see
    Category of Total Number note 3) note 3)
    securities Number quoted (cents) (cents)

    7.1 Preference
    securities
    (description) Nil Nil - -


    7.2 Changes during quarter
    (a) increases through
    issues - - - -
    (b) decreases through
    returns of capital
    buybacks,
    redemptions - - - -


    7.3 Ordinary
    securities 282,402,048 282,402,048 - -


    7.4 Changes during quarter
    (a) increases through
    issues 100,000 100,000 - 4.5
    (b) decreases through
    returns of capital
    buybacks - - - -


    7.5 Convertible debt securities
    (description) Nil Nil - -


    7.6 Changes during quarter
    (a) increases through
    issues - - - -
    (b) decreases through
    securities matured,
    converted - - - -


    7.7 Options (description Exercise Expiry
    and conversion factor) price date

    90,544,108 90,544,108 12 20/09/2005
    2,025,000 - 20 28/05/2004
    525,000 - 4.5 24/09/2006
    500,000 - 13 06/09/2007

    7.8 Issued during quarter - - - -

    7.9 Exercised during quarter 100,000 - 4.5 24/09/2006

    7.10 Expired during quarter - - - -

    7.11 Debentures
    (totals only) Nil Nil

    7.12 Unsecured notes
    (totals only) Nil Nil


    COMPLIANCE STATEMENT

    1 This statement has been prepared under accounting policies which
    comply with accounting standards as defined in the Corporations Law
    or other standards acceptable to ASX.

    2 This statement does give a true and fair view
    of the matters disclosed.

    G M Edwards Date: 30/04/2003
    DIRECTOR/COMPANY SECRETARY




    Headline: Third Quarter Activities Report Print this page
    ASX Code: MMN
    ------------------------------------------------------------------------

    MACMIN SILVER LTD 2003-04-30 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    SUMMARY & COMMENTS

    Macmin Silver Ltd (Macmin) is a silver focused company whose primary
    project is the Texas Silver Project, SE Queensland, Australia. Macmin
    has exposure to gold by way of a 65% equity in New Guinea Gold
    Corporation (NGG) and a 1% NSR royalty on production by NGG. Macmin's
    business strategy is to enhance shareholder value by way of:

    i. Continuing to expand silver resources/reserves at its Texas Silver
    Project.

    ii. Develop a silver mine at this project when the silver price shows
    sustained strength above US$5 per oz of silver.

    iii. Gold production in 2004 from NGG's Papua New Guinea projects.

    iv. Obtain maximum benefit from likely major increases in silver and
    gold prices. Macmin is presently completely unhedged and the
    Directors' preference is to remain unhedged.

    The Texas Silver Project has in-ground resources of 44.5 Moz of
    silver equivalent, with a district potential, based on drill hole,
    geochemical and geophysical results, estimated to be in excess of 100
    Moz of silver.

    Highlights from the quarter include:

    * The updated and enhanced Feasibility Study has shown that the
    increased ore reserves for the Twin Hills Silver Project at Texas (as
    announced in late 2002) now support an extended mine life of four
    years. As resources are converted to reserves by additional drilling
    and/or total district resources are increased, Directors would expect
    this mine life to be further extended.

    * Directors believe shareholder value will be maximised if
    development is deferred until silver prices show sustained and upward
    strength in the US$5-6 per oz price range.

    * Drilling recommenced at the Texas Project during the quarter. A 2m
    intersection grading 285 g/t Ag was encountered during drilling on
    the Silver Spur Mining Lease. Aggressive exploration will be
    undertaken during the year on the Texas Project to upgrade and extend
    the asset base. Percussion drilling has commenced at Mt Gunyan and
    other prospects and diamond drilling will commence during the second
    quarter.

    * A major IP anomaly was located extending northward from the Silver
    Spur Mining Lease and just west of the known Twin Hills silver
    mineralisation. This anomaly is at least 800m in length, is open
    ended to the north and is thought to indicate a buried zone of
    sulphide mineralisation, such as the alteration zone surrounding the
    Twin Hills silver mineralisation. This is an exciting new exploration
    target in the Texas district.

    * Macmin subsidiary, TasGold Ltd, completed an IPO raising $2.35M and
    listed on ASX on 9 April 2003.

    * Macmin subsidiary, New Guinea Gold Corporation, announced plans for
    three gold mines over the next 4 years in Papua New Guinea.

    * Dr Garry G Lowder, Executive Chairman of Malachite Resources NL,
    joined the Board of Macmin effective 4 April 2003 as an independent,
    Non-Executive Director.

    2. TEXAS SILVER MINES PTY LTD

    The Texas Project EPM's 8854, 11455, and 12858; ML 5932 and ML 50161
    are located 100km west of Stanthorpe. Texas Silver Mines Pty Ltd is a
    wholly owned subsidiary of Macmin Silver Ltd.

    2.1 Twin Hills Mine Development - Current Status

    The Twin Hills Mine Development has been enhanced in light of the
    successful upgrading of reserves by the 2002 Drilling Programme (ASX
    announcement 26 September 2002).

    Macmin's Mining Engineering Consultant, Tennent Isokangas of
    Brisbane, in conjunction with Macmin's external mining consultant,
    have produced a new optimised pit plan after updating the earlier
    Surpac Block Model (report to ASX 7th August 2000). The optimised pit
    contains 13 Moz of silver equivalent in a redesigned expanded pit
    model. By comparison, the previously reported figure for the Phase I
    Pit alone totalled 6.8 Moz of silver equivalent.

    The updated Feasibility Study, also completed in conjunction with
    Macmin's external mining consultant, indicated that the mining
    operation in the open pit will extend to about 4 years, in comparison
    to the Phase I Pit operation of 21 months. The treatment rate will be
    700,000 tpa of crushed and agglomerated ore, with lower grade ore
    below 50 g/t silver carted to a dump leach operation. Partly because
    of the lower cut-off grade of 50 g/t silver, the grade of the heap
    leach ore is now 118 g/t silver equivalent and the grade of the dump
    leach is 44 g/t silver equivalent. The likely cashflows from the
    initial optimised pit are very sensitive to silver price and will not
    be finally determined until the decision to mine is announced.

    The remaining resource at Twin Hills (not yet included in Ore
    Reserves), if successfully upgraded to reserve status, may allow the
    operation to continue well beyond the initial 4 years.

    The Board believes that shareholder value will be optimised if
    development is deferred until the silver price moves above US$5 per
    ounce and shows continuing strength in the US$5-6 per ounce price
    range. The Directors continue to believe that the silver price will
    increase substantially in the near future because of the
    supply/demand shortfall, as explained in Macmin's 2002 Annual Report.
    Any such increase will have a major upward impact on the
    profitability of the project. A second consideration which mitigates
    against early development is that the cost of raising project capital
    would be high at present silver prices. The preferred method of
    raising capital, so that the company is not forced to enter into an
    onerous hedging strategy, is to raise this capital by way of a
    convertible note or bond. As the loan would be underpinned by Macmin
    shares, it would be preferable for the Macmin share price to be
    substantially higher before entering into such a raising. The
    Directors are confident Macmin's share price will rise substantially
    with a significant rise in the silver price.

    EXPLORATION SUMMARY

    Exploration resumed on the Texas Project in late February with the
    objective of increasing the current 44.5 Moz of silver equivalent
    currently in resources. Shallow percussion drilling was undertaken at
    several prospects and a geophysical survey was commenced on the
    southern part of the Twin Hills area. Drilling commenced at the Mt
    Gunyan prospect which already has an inferred resource of
    approximately 14 Moz of silver equivalent.

    DRILLING

    * SILVER SPUR

    Eighteen percussion holes (897m) were completed during the quarter in
    the northern part of the Silver Spur Mining Lease where narrow
    intervals of silver-gold mineralisation had previously been
    encountered. The best intersection was 2m at 285 g/t Ag between
    54-56m (bottom of hole) in drill hole SSP44. Further drilling will be
    required to test the deeper extent of these near surface indications
    of mineralisation.

    * BACK CREEK NORTH

    Thirteen percussion holes (600m) were drilled around a historic
    copper working at Back Creek North. The best intersection was 6m at
    0.35% Cu between 50-56m down hole in drill hole BNP033. Silver values
    were low.

    * TWIN HILLS NORTH

    Seventeen percussion holes (1,000m) were drilled on the northern part
    of the Mining Lease. Low silver values were encountered.

    * MT GUNYAN

    Drilling commenced at Mt Gunyan but no results are yet available (see
    also ASX release of 19th March).

    GEOPHYSICS

    An IP (Induced Polarisation) Survey was conducted over the silver
    soil geochemical anomaly at the southern end of the Twin Hills Mining
    Lease. The aim of the survey was to detect zones of alteration
    (silification) which would be drill tested for silver mineralisation.

    The survey has located a chargeability anomaly at the north-east end
    of the area which requires further geophysical coverage (to be
    undertaken in May) to determine its extent, depth and significance.

    Drill testing will be undertaken on completion of the survey.

    Because of the location of this IP anomaly, effectively along
    strike from the Silver Spur mining lease and adjacent to the Twin
    Hills silver resource, it is considered highly favourable for the
    location of additional silver mineralisation.

    TASGOLD LTD

    Former Macmin subsidiary, TasGold Ltd (TasGold) successfully
    completed an IPO on 26th March 2003 with the raising of $2.35M.
    TasGold listed on ASX on 9th April 2003. Macmin now holds only a
    minor interest in TasGold.

    NEW GUINEA GOLD CORPORATION

    Macmin holds a 65% equity in New Guinea Gold Corporation and retains
    a 1% NSR royalty on all income from NGG's current PNG projects.

    Releases made by NGG through the quarter, including the Joint
    Venture Agreement with Paccom Ventures of Vancouver, can be viewed on
    their website at www.newguineagold.ca.

    CORPORATE

    During the quarter, the Macmin Silver Ltd Board approved changes in
    responsibilities for Executive Directors including appointment of Bob
    McNeil as Executive Chairman and Dr Garry G Lowder as an additional
    independent and Non-Executive Director.


    R D McNeil
    EXECUTIVE CHAIRMAN

    This report is based on & accurately reflects information compiled by
    a competent person as defined in Appendix 5A of the ASX Listing Rules

    Please refer to announcements previously released

    A copy of the full announcement is available in PDF format on
    www.asx.com.au. Alternatively it is available for purchase from
    ASX Customer Service on 1 300 300 279.












 
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