Quarterly Activities/Appendix 5B Cash Flow Report

SensOre (ASX:S3N) is pleased to present its quarterly activities report for the period ending March 2023.

Highlights

• Quarterly invoices (revenue from sales and services, and grants) $1.13m in Q3 FY2023
• Total Contract Value (TCV) $2.50m steady from $2.56m in Q2
• Technology - automation and productisation of SimClust, AGLADS and Cauchy Downward Continuation (CDC), commercial application commenced
• Services milestones achieved:
  • Accelerated data cube extensions in New South Wales (NSW) and South Australia (SA), delivery on track for Q4 FY2023. Strong interest for targeting.
  • Commenced $350,000 project with Barton Gold on the Central Gawler (SA
  • Significant software sales in China, India and East Timor
  • Completed geochemical and geophysical data services in multiple states, including in the Isa domain in Queensland
  • Completed multiple geochemical and geophysical data and integrated targeting services for Lithium and Nickel in WA and Northern Territory
• Exploration:
  • Lithium R&D – awarded $322,000 NSW grant to pilot new lithium exploration approaches
  • Lithium targets – ramping up of fieldwork and progressed evaluation and negotiation of additional joint ventures in WA.
• Corporate – appointed Atrico corporate growth advisors
• Cash balance at 31 March 2023 $1.12m, impacted timing of payments

Figure 1: SensOre marketing at the Australasian Geoscience Explration Conference AEGC (Brisbane) March 2023

Contracts and Financial Results

Cash receipts from customers during the quarter were $1.05m, a decrease of 6% from Q2 FY2023. Q3 is impacted by seasonality (summer holiday season) and timing of payments. 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 $0.79m at the end of the quarter, cash receipts related to this will be received next quarter. Invoices raised during the quarter were $1.13m, down 18% over the prior quarter mainly due to the seasonality impact.

Total Contract Value (TCV) decreased slightly by 2% compared to Q2 FY2023, on a net basis after depletion, with TCV of $2.50m this quarter compared to $2.56m previous quarter. TCV is the remaining value of current contracts. It depletes monthly, as the remaining term of the contract reduces. Several larger contracts were signed with clients and work commenced during the March quarter for delivery in coming quarters.

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