Jindalee Resources Limited (ASX: JRL), (Jindalee, the Company), a mineral exploration company based in Western Australia, releases its half-yearly financial report for the period ended on December 31st, 2022. The Company is aligned with its goals and working on its potential projects. Also, after the reporting period, Jindalee spun off the Australian lithium, nickel, and gold assets to focus on its core assets in the United States.
Operations During the Period
Jindalee Resources focused on the McDermitt Lithium Project in the United States during the half-year period. Drilling was executed to expand the existing resource base along with metallurgical test work, cultural surveys, and environmental baseline studies to reduce the risks associated with the project.
The Company acquired an 80% stake in the Deep Well Nickel-Copper-PGE Project (Western Australia) and divested several non-core projects there. As part of its proposed exploration for early 2023, Jindalee Resources completed heritage surveys at the Widgiemooltha Project. They have also conducted heritage and flora surveys at the Lake Percy Project. Jindalee made net losses of AUD 1.7 million during the half-year period that ended on December 31st 2022. In contrast, during the same period in the previous year, they made a profit of AUD 0.7 million. The total loss for the period consists of the significant inorganic component is share-based payment expenses of nearly AUD 1.4 million. It is incurred on account of the options granted to employees under the employee share plan and options issued to directors.
Figure 1: Jindalee Resources Profit or Loss Statement for the half-year-period
The Financial Position of the Company
Jindalee has a strong cash position to support its exploration activities. As per the half-yearly financial report, the Company has AUD 2.9 million in cash and cash equivalents, and total assets amounted to AUD 18.4 million as of December 31st, 2022. The Company’s net assets were approximately AUD 17.9 million as of December 31st, 2022. On June 30th, 2022, the net assets recorded were approximately AUD 18.3 million.
Figure 3: Jindalee Resources Limited Financial Position as of December 31st, 2022
Updates on Cashflow and Changes in Equity
- During the period, the Company invested approximately AUD 2.1 million in exploration and evaluation
- At the end of half-year (December 31st, 2022), Jindalee Resources held approximately AUD 2.9 million in cash and cash equivalents
- The total equity of the Company at the end of the half-year (December 31st, 2022) was nearly AUD 17.9 million
Updates on McDermitt Lithium Project
The McDermitt Lithium Project is situated in southeastern Oregon. McDermitt is one of two lithium sediment projects in the United States that the Company acquired in June 2018, the other is Clayton North. On July 6th, 2022, Jindalee declared a revised Mineral Resource Estimate (MRE) for the McDermitt project. The MRE was based on the results of drilling 12 holes in December 2021. The drilling led to a combined Indicated and Inferred MRE of 1.82 billion tonnes at 1,370 ppm lithium, equivalent to 13.3 million tonnes of Lithium Carbonate Equivalent (LCE).
In an announcement on December 14th, 2022, Jindalee revealed the final assay results from a 21-hole program carried out in October 2022 at the McDermitt project.
However, after the reporting period on February 27th, 2023,Jindalee reported a revised Mineral Resource Estimate (MRE) at McDermitt. The MRE included results from 21 holes drilled between August and October 2022, with Indicated and Inferred resources totaling 3.0 billion tonnes at 1,340 ppm lithium, equivalent to 21.5 million tonnes of LCE.
Jindalee Resources Limited Executive Director & CEO Lindsay Dudfield
Jindalee Resources Limited’s Executive Director and CEO, Mr. Lindsay Dudfield, is a geologist with more than 40 years of experience in multi-commodity exploration. He has held senior management positions across several companies, including Amoco and Exxon. He was appointed as the CEO of the Company in January 2023. He confirmed compliance of the half-yearly report with the Corporations Act of 2001.
Figure 4: Jindalee Resources Limited’s Executive Director and CEO, Mr Lindsay Dudfield
Investors Outlook
- As of March 9th, 2023, the Jindalee Resources share price stood at AUD 2.69 per share, and the stock volume (4-week average) was 56,186
- As of March 9th, 2023, Jindalee Resources Limited has experienced a year-to-date increase of 42.71%
- The Company has 57.4 million shares on issue and has a market capitalisation of approximately 154 million as of March 9th, 2023
- Jindalee Resources and POSCO Holdings Inc. signed a non-binding Memorandum of Understanding (MoU) on February 13th, 2023, to execute joint research regarding the McDermitt Lithium Project
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