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SensOre Ltd (ASX: S3N) is pleased to present its quarterly activities report for the period ending September 2023.
Highlights
- Quarterly invoices $1.4m (revenue from sales and grants) up 71% on September 2022 ($0.76m)
- Software and services significant milestones achieved:
- Delivery of phases 2 and 3 of the Barton Gold Central Gawler Project (contract value $0.4m)
- Completed NSW data-cube with support from NSW government Critical Minerals Fund and lithium targeting project with Stelar Metals (ASX:SLB)
- Contracts signed with large international Oil and Gas (O&G) companies for Cauchy geophysics
- Exploration gathering momentum:
- Lithium targets – field work at Abbott’s North AI target returns lithium grades up to 1.25%
- Corporate – advanced discussions in relation to value generation from SensOre’s portfolio of early- stage lithium assets
- Total Contract Value (TCV) has decreased to $2.35m from $3.13m down 25% in Q4 with completion of several large contracts in the quarter
- Cash balance at 30 September 2023 $1.005m
CEO Richard Taylor commented:
“The lithium targeting collaboration with Deutsche Rohstoff is bearing fruit with highly encouraging results from the Abbotts North project. The identification of a new lithium fertile pegmatite system in an area previously not known for lithium is a great demonstration of the SensOre technology to objectively define prospects that have been overlooked by previous explorers.
The quarterly performance of $1.4m up from the equivalent quarter last year but down from the previous record quarterly performance of $1.89m in the June quarter remains positive. The seasonality of revenues, particularly software licence renewals at the end of the financial and calendar years contributes to this variability quarter on quarter. SensOre has put in place cost reductions to improve cash availability throughout the year.”
Figure 1: SensOre deployed technology in support of lithium exploration at Abbotts North
Contracts and Financial Results
Invoices raised during the quarter were $1.4m, an increase of 71% when compared to the same September quarter 2022. Cash receipts from customers and grants during the quarter were $1.4m, a decrease of 5% from Q4 FY2023 on the back of high end of financial year sales. Operational cashflow was negative for the quarter. The September quarter is historically weaker for sales revenue due to the strength of the June quarter results. Billings, and subsequently cash receipts, vary month-by-month and quarter-by-quarter due to the anniversary dates of key contracts and the timing of services revenue in reaching project milestones. With closing trade receivables of $0.9m at the end of the quarter, cash receipts related to this will be received next quarter.
Total Contract Value (TCV) decreased by 25% compared to Q4 FY2023, on a net basis after depletion, with TCV of $2.35m this quarter compared to $3.13m previous quarter. TCV is the remaining value of current contracts. It depletes monthly, as the remaining term of the contract reduces. The completion of several large services contracts contributed to the decrease.
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