Austral Resources Australia (ASX: $AR1) June 2024 Quarterly Activities Report

Austral Resources Australia Ltd (ASX: $AR1) announced a significant debt restructuring agreement with Glencore, Secover, and Thiess, discharging $78 million in secured debt and reducing its senior secured debt to zero. The company also appointed David Newling as the new Non-Executive Chairman. Key financial metrics for the June quarter include the production of 1,571 tonnes of copper cathode and the suspension of securities until the completion of a planned equity raise and recapitalisation process.

Executive Commentary

In the June Quarter, we achieved a major milestone by entering into a significant debt restructuring agreement with Glencore, Secover, and Thiess, which allowed us to discharge $78 million in secured debt and reduce our senior secured debt to zero. We also welcomed David Newling as our new Non-Executive Director and Chairman. While our securities remain suspended until we complete our planned equity raise and recapitalisation process, I am confident that following the Company's debt being extinguished, Austral is well-positioned for future growth and stability. Operationally, our on-site team continued to put in the work. During the Quarter, we plated over 1,570 tonnes of copper. Additionally, we successfully dispatched 1,347 tonnes of copper, ensuring a steady flow of production was maintained whilst mining activities have been suspended. These accomplishments are a testament to the dedication of our site team, who have managed to maintain production levels despite challenging conditions.

Summary

Austral Resources Australia Ltd (ASX: $AR1) made significant progress in the June 2024 Quarter, entering into a debt restructuring agreement to discharge $78 million in secured debt and reduce its senior secured debt to zero. The company also appointed a new Non-Executive Chairman, David Newling. Despite the suspension of securities until the completion of a planned equity raise and recapitalisation process, the company remains optimistic about future growth and stability. Operationally, the company achieved notable milestones in copper production and dispatch, maintaining steady production levels despite the suspension of mining activities. The company is also focused on extending its mine life and exploring potential future growth opportunities. Additionally, the company is actively progressing its ESG program and sustainability reporting to align with emerging legislative requirements and investor stakeholder expectations. Looking ahead, Austral aims to continually improve and develop its sustainability disclosures and is preparing for compliance with emerging climate-related disclosure requirements.