26 Mar 2019price query● Neutral
ASX queried a rise from $0.058 (20 March) to $0.13 on higher volume. RES said it knew of no undisclosed information and suggested the market was slowly digesting its 15 March interim report and Noble funding news.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Mar 2019half year report▼ Bad
Half-year to 31 Dec 2018 shows a net loss of $6.7m (prior year $1.2m), including a $2.7m unrealised foreign exchange loss on the Noble loan and $1.2m interest no longer capitalised. Repeats that lender delays pushed back the 31 March 2019 financial close target.
15 Mar 2019debt financing● NeutralMajor
Noble conditionally agrees up to a further US$2.5m of working capital to 30 June 2019, with first repayment moved to 30 September 2019. Conditions include all lender credit approvals by 29 March 2019 and a plan for small-scale mining at Boikarabelo.
12 Mar 2019listing compliance notice▼ Bad
Replying to an ASX query on its cash flows, RES expects continued negative operating cash flow and is negotiating more working capital to 30 June 2019, with nothing finalised. Funding delays raise borrowings, and repayment will come from mine cash flows once operating.
29 Jan 2019quarterly activities report▼ Bad
December quarter: the lender's delay means the 31 March 2019 financial close target is no longer achievable, and the focus shifts to conserving cash. Noble's facility stands at US$41.9m, secured by the Ledjadja share pledge. Syndicate talks resume as the preferred route.
5 Dec 2018joint venture update▼ BadMajor
The delayed lender will not finish approvals before Christmas, so the funding timeline slips again and the board will focus on conserving cash or finding extra financial support. CFO Brendan O'Regan resigns effective 31 January 2019.
30 Nov 2018director officer appointment● Neutral
Michael Gray, a coal project developer, is appointed non-executive director, replacing retiring Peter Watson and keeping two Australian resident directors. Rob Croll becomes Lead Independent Director because the Chairman is not regarded as independent given his link to a significant shareholder.
30 Nov 2018other● Neutral
Chairman's AGM address acknowledges shareholder impatience with the lengthy funding process. He cites the IDC R540m loan and refreshed expert reports, but declines to give a timeline, hoping construction starts in 2019.
30 Nov 2018agm notice● Neutral
All resolutions pass at the AGM, including the Noble share pledge, BDO as auditor and two director re-elections. The remuneration report passes by poll with 42.87% against, which registers a first strike.
12 Nov 2018joint venture update▼ Bad
The delayed lender's credit committee meeting has slipped again, though it remains committed to the project. The board is seeking a commitment to finish approvals before Christmas and is accelerating talks with an alternative third-party funder in parallel.
31 Oct 2018quarterly activities report● Neutral
September quarter repeats known funding status: the delayed lender will lodge its credit submission in the week of 29 October, with board approval possible in November. Financial close is still likely towards end Q1 2019. Third-party funder talks continue and rail funding is still being sought.
30 Oct 2018debt financing● NeutralMajor
Noble's further US$4.7m is finalised, lifting the facility to US$41.9m at 10.75%. Security will be a pledge over RES's 74% of Ledjadja. ASX granted a waiver, first repayment moves to 30 June 2019, and the first drawdown is expected November 2018.
30 Oct 2018auditor change● Neutral
AGM notice sent for 30 November 2018. Director Peter Watson will retire at the AGM, citing competing time demands. BDO is chosen as new auditor after a July 2018 tender, replacing PwC, subject to ASIC approval and shareholder ratification.
8 Oct 2018annual report● Neutral
The 2018 Annual Report repeats known facts: the 995Mt resource, 6Mtpa Stage 1 plan, and a 44km rail link to be built once funding is secured. The visible text shows no new developments.
8 Oct 2018annual report● Neutral
Corporate governance statement for FY18 says the ASX recommendations are applied, except executive performance assessment. No executive incentive awards were made because of the project funding delay.
8 Oct 2018annual report● Neutral
Appendix 4G key to corporate governance disclosures for FY18, lodged with the annual report. It is an administrative form pointing to where governance disclosures are found, and carries no new company developments.
17 Sept 2018annual report● Neutral
Full-year statutory accounts to 30 June 2018 are released. The visible text covers only the contents and the directors' report, with no financial figures, so the results are not shown here. Brendan O'Regan became joint company secretary on 26 June 2018.
13 Sept 2018debt financing● NeutralMajor
The delayed lender commits to table the proposal for credit approval by end October 2018. Financial close now looks likely towards end Q1 2019. Noble conditionally agrees a further US$4.7m, pushes first repayment to 1 April 2019, and takes new security.
20 Aug 2018joint venture update▼ BadMajor
With no control over the delayed lender's timing, the board will also explore a third party as a substitute or additional funder in the syndicate. The company says further delays are now likely.
1 Aug 2018debt financing● Neutral
Noble adds up to US$2.5m, drawn August to October 2018, taking the facility to US$37.2m at 10.75%. Repayments on the original US$20m now start 1 November 2018, and termination moves to 31 March 2025.
1 Aug 2018contract award▲ GoodMajor
Ledjadja executes the three Sedgman contracts: CHPP construction and ancillary works at US$210m, and four-year plant operation at US$100m. This resolves the long-pending execution thread, but the contracts depend on project finance being drawn down.
30 July 2018quarterly activities report▼ BadMajor
June quarter: the lender accepted the company's responses, but its credit submission is now held up by an internal review of its ESG investment criteria, so a contingency plan is triggered. Noble's offtake received regulatory approval. Resources are updated with no material change.
4 June 2018joint venture update● Neutral
Company is still working on a response to the concerned lender, with a meeting contemplated within a fortnight, and will publish no further key dates. It plans to ask Noble for extra working capital because of the delay.
10 May 2018joint venture update▼ BadMajor
One of the two remaining lenders wants more information before proceeding, on credit risk while Noble restructures and on ramp-up working capital. Board aims to resolve this by end of May; no timetable beyond that. Noble is willing to consider covering any shortfall.
30 Apr 2018quarterly activities report● Neutral
March quarter repeats the IDC R540m facility and the Noble extension to US$34.7m. The board meeting on lender term sheets slips again, from 10 May to 1 June 2018, due to minor slippage in one approval.
16 Apr 2018debt financing▲ GoodMajor
The IDC, the first of three lenders to approve, signs a binding R540m senior loan facility with Ledjadja for Boikarabelo, at JIBAR plus 6% during construction. It still depends on conditions, including board and shareholder approval and rail link financing.
29 Mar 2018debt financing● NeutralMajor
Noble adds up to US$2.5m, drawn May to July 2018, taking the facility to US$34.7m. Repayments on the original US$20m now start 1 August 2018. One lender's credit approval slips to end April, so the board meeting on term sheets moves to 10 May.
16 Mar 2018half year report● Neutral
Half-year to 31 December 2017: net loss $1.2m, same as the prior year, including a $1.5m unrealised foreign exchange gain. The report repeats that the funding needs shareholder approval and that the rail link (R650m) and ramp-up costs are separate.
8 Mar 2018director officer appointment▼ BadMajor
CEO Rob Lowe stands down immediately to focus on financial close, staying until his contract ends 31 December 2018. Director Papi Molotsane becomes interim CEO. Funding is slower than hoped: board meets 11 April on term sheets, with an EGM now targeted for late June 2018.
25 Jan 2018quarterly activities report▼ Bad
December quarter: cash fell to $1.8m from $5.1m. Lender credit approvals slipped again because of year-end holidays; internal planning now targets term sheets by end February/early March 2018. Rail link est. R650m (A$68.4m) still unfunded.