Altura Mining Limited
Update on Loan Facility: Altura Mining Limited (ASX: AJM) is engaged in mining, processing, and sale of lithium ore. Recently, the company updated the market on loan note facility, wherein, it stated that loan note holders have consented to defer all payments and waive key covenants under the facility till 31 October 2020. The company added that the waiver reflects strong support from the lending group and will allow the company to continue evaluating proposals with a primary focus on reducing financing costs. During June 2020 quarter, the company reported lithium concentrate production of 46,316 wet metric tonnes and recorded an average quarterly operating cash cost of US$369/wmt produced. During the quarter, the company signed a 5-year Binding Offtake Agreement with Hunan Yongshan Lithium Co., Ltd.
Production (Source: Company Reports)
September 2020 Guidance: The company is expecting production and sales for the quarter ended September 2020 to be broadly in line with previous quarters. AJM is likely to report operating cash costs in line with the previous results of US$350 to US$390/wmt. The company has scheduled to conduct the General Meeting of shareholders on 25th September 2020.
Key Risks: The company is exposed to various financial risks such as market risk (which includes currency risk, interest rate risk and price risk), credit risk and liquidity risk.
Stock Details: On 10th August 2020, the stock of the company was placed on a trading halt on the request of AJM due to the pending release of an announcement regarding an update to its current arrangements with its lenders. The company’s shares have remained temporarily suspended. In addition, the company is not aware of any reason why the extension of the suspension of trading in its securities should not be granted. The stock of the company last traded at $0.070.
Syntonic Limited
A Look at Q4 FY20 Key Highlights: Syntonic Limited (ASX: SYT) is involved in the commercialisation of its mobile services for telecommunication carriers. The company reported unaudited revenue for June 2020 quarter amounting to $2.04 million, reflecting a fall of 23.7% on Q3 FY20. This was mainly due to a 31.6% decline in FOX Sport Gol subscription sales during the June quarter. The company added that COVID-19 is negatively impacting content services revenue, including FOX Sports Gol with daily active users down 51.9% on the quarter. At the end of the quarter, cash receipts stood at $0.61 million and accounts receivable came in at $0.67 million.
Key Financials (Source: Company Reports)
Outlook: The company is highly uncertain of the future impact of COVID-19, which might impact its revenue and cash receipts. SYT is in advanced negotiations with various third parties regarding the potential divestment of its main undertaking.
Key Risks: The company is exposed to various risks arising from financial instruments, which include interest rate risk, foreign currency risk, credit risk and liquidity risk.
Stock Details: The company entered Q1 FY21 with a cash balance of $0.23 million. The securities of the company were placed on suspension on the request of SYT due to the pending release of an announcement regarding the potential divestment of its main undertaking on 4th August 2020. The securities of the company are likely to be in voluntary suspension until the earlier of the commencement of normal trading on 1st September 2020 or the company releases the announcement. The stock of SYT last traded at $0.001.
Ziptel Limited
Acquisition of Douugh Limited: Ziptel Limited (ASX: ZIP) offers a discounted mobile phone roaming service for overseas travel. On 20th March 2020, the company inked a binding, conditional agreement to acquire 100% of the issued capital of Douugh Limited. Douugh is a capital lite, purpose driven consumer fintech and neobank, which is operating in the U.S market. Ziptel Limited will change its name to Douugh Limited on the completion of the transaction. The company will issue 275,000,000 fully paid ordinary shares in ZIP, 75,000,000 performance shares, 5,000,000 unlisted options exercisable at 4 cents among vendors as a consideration for the acquisition of Douugh.
Cash Flow Highlights (Source: Company Reports)
Key Risks: The business activities of the company are exposed to a variety of financial risks, which include market risk (including currency risk and interest rate risk), credit risk and liquidity risk. Credit risk arises from the failure of counterparties on their contractual obligations.
Stock Details: ZIP ended the Q4 FY20 with a cash balance of $832k. Cash used from operating activities stood at $325K, during the June 2020 quarter. The company has maintained its lean cost structure, which is in line with previous quarters. On 23 January 2020, ZIP requested a trading halt and subsequently a suspension in the trading of its securities due to the pending release of an announcement in relation to a proposed material acquisition transaction. The Company added that it is not aware of any reason as to why the trading halt should not be granted.
Delaware Thirteen Ltd
A Look at June 2020 Quarter: Delaware Thirteen Ltd (ASX: D13) is an innovative technology company, which is focused on communication, networking, and cyber solutions. Recently, the company has failed to pay its annual listing fee for the year ending 30 June 2021 to ASX. During the quarter ended 30th June 2020, the net cash outflow from the operating activities stood at $1.18 million after payment of $525k for research and development, $97k for product manufacturing and operating costs, staff costs of $254k, and administration and corporate costs of $307k. During 1H FY20, the company completed the second tranche of its $12 million convertible bonds, which delivered funding of $5 million. The company entered an exclusive partnership with XiDrone, a Counter-UAS Intellectual Property Specialist. In addition, the company also secured a credit facility of $10 million.
Cash Flow from Operating Activities (Source: Company Reports)
Sale of Website and Name: Following the sale of its subsidiary “Department 13, Inc” to Department 13 Pty Ltd, the company has sold its website “www.department13.com.au” to Department 13 Pty Ltd for an immaterial amount of consideration. The company received approval from ASIC (Australian Securities & Investments Commission) for the change of name to Delaware Thirteen Ltd, which became effective on 18th February 2020.
Key Risks: The company’s business is sensitive to the rising market share of a competitor, which may impact the financial performance of the company. In addition, the business is also exposed to financial risks, such as credit risk, liquidity risk, and market risk.
Stock Details: On 21st November 2018, the stock of the company was placed on a trading halt on the request of D13 due to the pending release of an announcement in relation to funding arrangements. Previously, the company had notified the market that the trading halt will be lifted earlier of commencement of 23 November 2018, or when the announcement is made. Notably, the company’s shares have remained temporarily suspended. The stock of the company last traded $0.041.
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