Quarterly Activities Report December 2024
GreenX awarded up to £252m from Poland arbitration; selected for BHP Xplor program with US$500k funding.
- Arbitration award from Poland £252 million (A$497 million)
- Annual interest income accruing ~£14 million (A$28 million)
- Annual interest expense on litigation funding ~£2.7 million (A$5.3 million)
- BHP Xplor non-dilutive grant US$500,000
- Antimony price current US$40,000/t
- Arctic Rift Copper Project licence area 5,774 km²
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GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company) is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 December 2024.
HIGHLIGHTS
German Project - Tannenberg Copper Project
o In January 2025, GreenX was selected as as one of eight exploration companies to participate in BHP's 2025 Xplor program .
o BHP Xplor will provide GreenX with approximately US$500,000 in non-dilutive funding to support and accelerate its exploration plans at the Tannenb e rg Copper Project ( Tannenberg ) during the 6-month period of the program.
o BHP Xplor is expected to accelerate the geological concept build-out and exploration timeframe at Tannenberg .
Greenland Projects
o Enhanced project and technical team for GreenX, with the appointment of inhouse specialist geologist based in Scandinavia to re-evaluate and re-design exploration programs in Greenland.
Eleonore North Project
o During the quarter, GreenX received outstanding antimony results at the Eleonore North project in Greenland ( Eleonore North or ELN ).
o Antimony price now US$40,000/t from historical prices of ~US$5,000 to 10,000/t .
o Antimony and tungsten have been designated as "Critical Minerals" by the U.S. and the EU, with NATO designating tungsten as defence-critical for the Allied defence industry.
o Review and verification of new historical data, including radiometric data, at ELN underway with further updates to be made in the coming weeks.
Arctic Rift Copper Project
o The Company is targeting large scale copper in multiple settings across a 5,774 km 2 licence at the Arctic Rift Copper Project ( ARC ).
o With the new enhanced technical team now in place, further analysis on remote-sensing options underway which aims to improve understanding of the known copper mineralisation and to plan the next exploration program at the project.
Arbitration Award
o During the quarter, GreenX was awarded up to £252 million (A$497 million/ PLN 1.3 billion ) in compensation from the successful outcome of the international arbitration claims against the Republic of Poland ( Poland ) under both the Australia-Poland Bilateral Investment Treaty ( BIT ) and the Energy Charter Treaty ( ECT ).
o Interest income of ~ £14 million (A$28 million / PLN 70 million) per annum is currently accruing to GreenX. Against this, interest expense of ~£2.7 million (A$5.3 million / PLN 13.5 million) per annum is accruing on the US$11.3 million of litigation funding utilised.
o Upon satisfaction of the award, it is GreenX's intention to return the majority of the available cash to shareholders.
o Since the award was made, Poland has lodged a request to set-aside the award with the courts of England and Wales in relation to the BIT award and the courts of Singapore in relation to the ECT Award. Poland is challenging jurisdictional aspects of both awards and alleging procedural unfairness, including in the Tribunal's decision on damages.
During the quarter, the Company announced that following a rigorous selection process, it has been selected as one of eight exploration companies to participate in BHP's 2025 Xplor program in relation to Tannenberg.
As a 2025 BHP Xplor cohort company, GreenX will receive a one-off, non-dilutive grant of up to US$500,000, and in-kind services, mentorship, and networking opportunities with BHP and other industry experts and investors.
It is expected GreenX's participation in Xplor will expedite the build-out of geological concepts and the exploration timeframe at Tannenberg. GreenX intends to use the grant to conduct geophysics programs over the Tannenberg licence area.
Figure 1: Tannenberg is located in the industrial centre of Europe
GREENLAND PROJECTS
Eleonore North Project
During the quarter, GreenX announced that high grade antimony mineralisation had been identified at its Eleonore North project in Greenland, based on historical results recently released by the Geological Survey of Denmark and Greenland (GEUS). The historical results indicate the potential for a high-grade antimony-gold mineral system at ELN. Antimony prices have been on a rapid uptrend since China announced antimony export controls from 15 September 2024, with antimony prices in the US having rocketed to over US$40,000/t from US$18,300/t2.
- 14m long chip sample grading 7.2% Sb and 0.53g/t Au 3
- 40 m chip line with a length weighed average of 0.78g/t Au 3
Global strategic interest in antimony has significantly increased in 2024 due to several factors:
- China's recent export ban on antimony, effective from 15 September 2024, has caused market disruption 4 .
ANTIMONY RESULTS FROM NEWLY PUBLISHED GEOLOGICAL SURVEY ARCHIVE MATERIAL
Table 1: Selected antimony and gold results from 2008 GEUS fieldwork
| Sample # | Sb (%) | Au (g/t) | Field description |
|---|---|---|---|
| 469506 | 23.40 | 0.00 | Quartz vein with stibnite. Sample from boulder or scree |
| 496901 | 22.20 | 0.44 | Massive stibnite from mineralised zone |
| 496918 | 15.10 | 0.54 | Quartz vein + galena + chalcopyrite |
| 469504 | 6.65 | 0.83 | Shale with stibnite |
| 496912 | 0.10 | 4.10 | Clay alteration: hanging wall |
| 496904 | 0.11 | 4.70 | Clay alteration: footwall |
| 496910 | 0.04 | 2.20 | Intense clay alteration |
GEOLOGICAL SIGNIFICANCE OF ANTIMONY
GreenX has been able to access further historical data for ELN with a review currently underway. Following completion of this review further updates will be made, expected in the coming weeks.
Arctic Rift Copper Project
The Arctic Rift Copper Project (ARC) in Greenland is an exploration joint venture between GreenX and Greenfields Pty Ltd (Greenfields). GreenX can earn-in up to 80% in ARC with the Company currently owning a 51% interest in the project. The project is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.
SUCCESSFUL ARBITRATION OUTCOME IN DISPUTE WITH POLISH GOVERNMENT
In October 2024, GreenX reported a successful outcome of the international arbitration claims (Claim) against Republic of Poland (Poland or Respondent) under both the BIT and the ECT (together the Treaties).
The Company was awarded:
- approximately £252m (A$490m / PLN1.3bn) in compensation by the Tribunal under the BIT (BIT Award) which includes interest compounded at SONIA plus one percentage point (+1%) compounded annually from 31 December 2019 to the date of the award (7 October 2024).
- approximately £183m (A$355m / PLN 941m) in compensation by the Tribunal under the ECT (ECT Award), which includes interest compounded at the SONIA overnight rate +1% compounded annually from 31 December 2019. Interest will continue to accrue at SONIA +1% compounded annually until full and final payment by the Respondent.
- Additional Interest of approximately £4 million (A$8 million / PLN 20 million) has accrued since the award to end of January 2025 and will continue to compound annually until full and final payment by the Respondent.
- Interest income of ~£14 million (A$28 million / PLN 70 million) per annum is currently accruing to GreenX. However, interest expense of only ~£2.7 million (A$5.3 million / PLN 13.5 million) per annum is accruing on the US$11.3 million of litigation funding utilised.
During the quarter, the Polish Prime Minister, Mr Donald Tusk, stated in a press conference that:
All of GreenX's costs associated with the Claim were funded on a limited basis from Litigation Capital Management (LCM). To date, GreenX has drawn down US$11.3 million from LCM. Once the award compensation is received from Poland, LCM will be entitled to be paid back the US$11.3 million, a multiple of five times of the US$11.3 million and from 1 January 2025, interest on the US$11.3 million at a rate of 30% per annum, compounding monthly (which equates to interest of approximately US$3.4 million (£2.7 million / A$5.3 million / PLN 13.5 million) per annum).
Further information on the Claim and awards can be found in the Company's announcements dated 8 October 2024, 17 October 2024, 11 November 2024 and 22 January 2025.
CORPORATE
At 31 December 2024, GreenX had a cash balance of A$5 million and an additional US$0.5 million for exploration activities dedicated for Tannenberg from the BHP Xplor program.
APPENDIX 1: TENEMENT INFORMATION
As at 31 December 2024, the Company has an interest in the following tenements:
| Location | Tenement | Percentage Interest | Status | Tenement Type |
|---|---|---|---|---|
| Germany | Tannenberg | -1 | Granted | Exploration Licence |
| Greenland | Arctic Rift Copper project (Licence No. 2021-07 MEL-S) | 51 2 | Granted | Exploration Licence |
| Greenland | Eleonore North gold project (Licence No's 2018-19 and 2023-39) | 100 | Granted | Exploration Licence |
Notes:
1 In August 2024, the Company announced that it had entered into an earn-in agreement for Tanneberg through which GreenX can earn a 90% interest in the project. As at the date of this report, the Company held no beneficial interest in Tannenberg, other than through the Tannenberg earn-in agreement.
2 In October 2021, the Company announced that it had entered into an earn-in agreement with Greenfields to acquire an interest of up to 80% in ARC. Having met the spend requirement, the Company has been issued with its initial 51% interest in ARC.
Appendix 2: Related Party Payments
During the quarter ended 31 December 2024, the Company made payments of A$222,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of A$144,000 and the provision of a serviced office and company secretarial and administration services of A$78,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 31 December 2024, the Company made the following payments in relation to exploration activities:
| Activity | A$000 |
|---|---|
| Germany (Tannenberg) | |
| Permitting related costs | 1 |
| Personnel costs (geology team) | 116 |
| Sub-total | 117 |
| Greenland (Eleonore North and ARC) | |
| Permitting related costs | 12 |
| Personnel costs (geology team) | 28 |
| Other (data review, geoimagery, etc) | 10 |
| Sub-total | 50 |
| Total as reported in the Appendix 5B (item 1.2(a) and 2.1(d)) | 167 |
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
GreenX Metals Limited
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 23 008 677 852 | 31 December 2024 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 | |
| 1. | Cash flows from operating activities | - | - |
| 1.1 | Receipts from customers | ||
| 1.2 | Payments for | (50) | (156) |
| (a) exploration & evaluation | |||
| (b) development | - | - | |
| (c) production | - | - | |
| (d) staff costs | (371) | (735) | |
| (e) administration and corporate costs | (201) | (528) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 65 | 141 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (provide details if material) (a) Business Development (b) Arbitration related expenses (c) Occupancy | (159) - (232) | (349) (1) (459) |
| 1.9 | Net cash from / (used in) operating activities | (948) | (2,087) |
| 2. | Cash flows from investing activities | - | - |
| 2.1 | Payments to acquire or for: | ||
| (a) Entities | |||
| (b) Tenements | - | - | |
| (c) property, plant and equipment | (3) | (3) | |
| (d) exploration & evaluation | (117) | (129) | |
| (e) investments | - | - | |
| (f) other non-current assets | - | - | |
| 2.2 | Proceeds from the disposal of: | - | - |
| (a) entities | |||
| (b) tenements | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (provide details if material) | - | - |
| 2.6 | Net cash from / (used in) investing activities | (120) | (132) |
| 3. | Cash flows from financing activities | - | - |
| 3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
| 3.2 | Proceeds from issue of convertible debt securities | - | - |
| 3.3 | Proceeds from exercise of options | - | - |
| 3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (34) | (111) |
| 3.5 | Proceeds from borrowings | - | - |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans and borrowings | - | - |
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (provide details if material) | - | - |
| 3.10 | Net cash from / (used in) financing activities | (34) | (111) |
| 4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
| 4.1 | Cash and cash equivalents at beginning of period | 5,933 | 7,163 |
| 4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (948) | (2,087) |
| 4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (120) | (132) |
| 4.4 | Net cash from / (used in) financing activities (item 3.10 above) | (34) | (111) |
| 4.5 | Effect of movement in exchange rates on cash held | (1) | (3) |
| 4.6 | Cash and cash equivalents at end of period | 4,830 | 4,830 |
| 5. | Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
| 5.1 | Bank balances | 1,830 | 2,433 |
| 5.2 | Call deposits | 3,000 | 3,500 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 4,830 | 5,933 |
| 6. | Payments to related parties of the entity and their associates | Current quarter $A'000 | |
| 6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | (222) | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - | |
| 7. | Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end $A'000 | Amount drawn at quarter end $A'000 |
| 7.1 | Loan facilities | 19,880* | 18,160 |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (please specify) | 808^ | - |
| 7.4 | Total financing facilities | 20,688* | 18,160 |
| 7.5 | Unused financing facilities available at quarter end | 2,528 | |
On 30 June 2020, the Company executed a Litigation Funding Agreement ( LFA ) for US$12.3 million (*now worth A$19.8 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited ( LCM ), to pursue the damages Claim in relation to the investment dispute between GreenX and Poland). To date, GreenX has drawn down US$11.2 million (A$18.2 million) ( Outstanding Funding ). In accordance with the terms of the LFA, once the compensation is received, LCM is entitled to be paid the Outstanding Funding, a multiple of five times the Outstanding Funding (based on the period since entering into the LFA) and from 1 January 2025, interest on the Outstanding Funding at a rate of 30% per annum, compounding monthly. ^Subsequent to the end of the quarter, the Company announced that it had been selected to participate in BHP's 2025 Xplor program which will provide the Company with US$0.5 million (A$0.8 million) in non-dilutive funding to support and accelerate its exploration plans at the Tannenberg Copper Project.
| ABN | Quarter ended ("current quarter") | |
|---|---|---|
| 23 008 677 852 | 31 December 2024 | |
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| 8. | Estimated cash available for future operating activities | $A'000 |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (948) |
| 8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | (117) |
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (1,065) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 4,830 |
| 8.5 | Unused finance facilities available at quarter end (item 7.5) | 2,528 |
| 8.6 | Total available funding (item 8.4 + item 8.5) | 7,358 |
| 8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | 7 |
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
Answer: Not applicable
Answer: Not applicable
Answer: Not applicable
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 January 2025
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.