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Moreton Predicts First Profits

Filed under Breaking News, Business, Front2, Latest News

Moreton Resources executive chairman Jason Elks

May 7, 2019

Moreton Resources – the company planning to develop a coal mine on the outskirts of Kingaroy – predicts it will start making profits in “late May, early June”.

In a media release, company spokesman Jason Elks said there had been “strong advancement” at the company’s Granite Belt silver project.

“Taking into account current silver prices, the company is forecasting in late June to be generating $600,000 to $800,000 per week which will move the operations ahead and maintain a very strong operating profit month on month, pending production interruptions or operational issues,” Mr Elks said.

“The outlook target and forecasts are focussed upon $1 million revenue above operating costs month on month, from June 2019.”

Mr Elks also said “significant work” had been undertaken recently upon the South Burnett coal project and an announcement was “pending in the coming weeks” about these outcomes.

In its quarterly report to the ASX, Moreton Resources said it had received expressions of interests in two of the company’s coal projects, but did not state which ones.

“At this point the company has not progressed further in regard to any future divestment of co-operation agreements, other than two compliant submissions were made to the company however no decision upon next steps has been made,” the report said.

It said the South Burnett coal project was continuing to progress “through the EIS and feasibility”.

“A review of all previous reports and studies have (sic) now been carried out and a gap analysis is being completed with the objective of then progressing an updated resource study for the project,” the report stated.

It said a new resource and reserves report was expected to be released in May.

“The company has been for some time in talks with several major operators as to potential offtake and/or sales and marketing rights, and as such, will seek to undertake presentation and negotiations upon this front in late May or early June 2019,” the report said.

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On April 29,  the company’s Chief Operating Officer Phillip Bryant was appointed managing director. He has formerly worked for BHP, Newmont, Anglo Coal, Peabody Energy and New Hope.

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In its quarterly financial report to the ASX, Moreton reported it had spent $6.5 million over the financial year to date (nine months) and earned $495,000 from the sale or property, plant and equipment.

It had also received $2.2 million from the issue of shares and borrowed $1.5 million. It had $758,000 in cash.

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