19 Aug 2019drilling scheduled▲ Good
Location of the first corehole, Ugtaal-1, is finalised using geological modelling and early seismic results. A second well location in the same area is due in coming weeks. Spud is expected in about 4-6 weeks.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
14 Aug 2019capital raising announcement● Neutral
Cleansing prospectus (offer of 1,000 shares at 6c) to allow free resale of shares from option exercise. Raises no meaningful money itself. Records 93.46m listed options at 6.79c and 8m unlisted at 3.29c.
What it means for a shareholder
1,000 new shares at A$0.060 to raise about A$60. That's 0.000205% dilution: every existing holder's slice gets 0.000205% smaller. If you held A$1,000 of shares (16,667 at the issue price), your slice goes from 0.00342% to 0.00342% of the company. To keep it you'd need 0 more shares - about A$0 at the issue price.
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12 Aug 2019drilling progress report▲ Good
Seismic acquisition has started at Nomgon IX. Early test data show a possible coal sequence at about 700 m depth, a target for drilling. Fieldwork runs to mid-September, final results mid-October, drilling still late September or early October.
1 Aug 2019director officer appointment● Neutral
Victoria Allinson appointed Company Secretary from 1 August, replacing Dougal Ferguson, who resigned from the role. Administrative change.
1 Aug 2019contract award▲ GoodMajor
Binding contract signed with Erdenedrilling for two CBM coreholes plus an option for a third. First spud is estimated late September or early October. The MD aims to book Mongolia's first gas discovery within six months.
30 July 2019quarterly activities report● Neutral
June quarter report recaps final Mongolian approval, board additions (Cottee, Kelemen), the $3.6m placement and completed Alaska sale. Seismic is due to start in August with drilling after. No new results.
18 July 2019contract award▲ Good
Mongolian firm Erdenedrilling LLC chosen as drilling contractor from the tender that closed 31 May. Binding contract expected within weeks. The first well is to be spudded soon after seismic starts.
11 July 2019regulatory community update▲ GoodMajor
Mongolia approved the Detailed Environmental Impact Assessment, the last approval needed for field work. This resolves the open EIA thread. Seismic of about 100-130 km is due in roughly three weeks, with drilling around September.
25 June 2019investor presentation● Neutral
June investor presentation repeats known facts: 100% of Nomgon IX, 7.6 Tcf risked best-case prospective resource, 2019 seismic and two-well drilling plan. Shows 487.2m shares and $4.8m cash. No new information.
5 June 2019contract award▲ Good
Seismic contract signed with Micro Seismic LLC for about 120 km of 2D data. Five drilling tender responses received, contractor due by end June. Detailed EIA lodged, the last approval needed. Up to three coreholes expected around September.
29 May 2019joint venture update● Neutral
Elixir is a founding member of the Gobi Clean Energy Alliance, which promotes gas and renewables in southern Mongolia. Members include Oyu Tolgoi, ABB and Erdenes Mongol. It supports the market story but involves no commitment or revenue.
27 May 2019capital raising announcement● Neutral
Placement completed: 97,440,807 shares issued on 24 May at 3.6c, about 25% dilution. Joint lead managers get a 6% fee plus 9.74m EXROA options, subject to shareholder approval. Funds go to the Mongolian exploration program and working capital.
What it means for a shareholder
97.4m new shares at A$0.036 to raise about A$3.5m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (27,778 at the issue price), your slice goes from 0.0057% to 0.00475% of the company. To keep it you'd need 5,556 more shares - about A$200 at the issue price.
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23 May 2019capital raising announcement● Neutral
Cleansing prospectus (offer of 1,000 shares at 3.6c) lodged to allow free resale of the May placement shares. It raises no new money of its own, and the text shows the placement as 97,440,807 shares for about $3.5m.
What it means for a shareholder
1,000 new shares at A$0.036 to raise about A$36. That's 0.000257% dilution: every existing holder's slice gets 0.000257% smaller. If you held A$1,000 of shares (27,778 at the issue price), your slice goes from 0.00713% to 0.00713% of the company. To keep it you'd need 0 more shares - about A$0 at the issue price.
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20 May 2019admin correction● Neutral
Registered office moved to Level 10, 50 Pirie Street, Adelaide. Administrative notice only.
15 May 2019capital raising announcement▲ GoodMajor
Placement of 99.4m shares at 3.6c raises about $3.6m, leaving about $4.8m cash and 487m shares. Also: Mongolian exploration licence issued (10-year term), company renamed Elixir Energy, Neil Young made Managing Director. Detailed EIA still outstanding.
What it means for a shareholder
99.4m new shares at A$0.036 to raise about A$3.6m. That's 20% dilution: every existing holder's slice gets 20% smaller. If you held A$1,000 of shares (27,778 at the issue price), your slice goes from 0.00713% to 0.00568% of the company. To keep it you'd need 7,084 more shares - about A$255 at the issue price.
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7 May 2019contract award▲ GoodMajor
Seismic contract awarded to Mongolian firm Micro Seismic LLC. The survey is now 120 km targeting three identified CBM leads, down from the roughly 200 km regional plan. Signing early June; field work follows government approvals.
6 May 2019director officer appointment▲ Good
Stephen Kelemen, who led Santos' coal seam gas team from 2004, joins as non-executive director. Scott Patrizi resigns.
2 May 2019drilling scheduled▲ Good
Elixir invited six drilling contractors to tender for a minimum two-well corehole program at Nomgon IX later in 2019, after seismic. Tender closes 31 May. Seismic contract negotiations are well advanced.
30 Apr 2019security holder rights change● Neutral
Entek preference shares converted to ordinary shares. Option exercise prices fell 0.71 cents after the capital return: EXROA from 7.5c to 6.79c, unquoted options from 4c to 3.29c.
30 Apr 2019quarterly activities report● Neutral
March quarter: Alaska sale closed and Entek shares distributed, leaving Elixir focused on Mongolia. Cash was about $549,000 at 31 March, with no debt after receiving US$846,730. A preferred seismic tenderer is chosen, exploration licence awaited, first wells in 2H 2019.
29 Apr 2019director officer appointment▲ GoodMajor
Richard Cottee, former Queensland Gas Company managing director (grew it to a $5.7b takeover by BG), becomes chairman, and Ray Barnes retires. Cottee gets $72,000 a year plus 7.5m options and 15m performance rights, subject to shareholder approval.
29 Apr 2019security holder rights change● Neutral
Confirms the in-specie distribution of Entek preference shares was completed on 29 April, with conversion due next day. Also lists the top 20 holders of the 93.46m EXROA options; they hold 75.35%. Disclosure only.
15 Apr 2019asset acquisition disposition● NeutralMajor
Entek's side: it completed buying Emerald House (13 leases) from Elixir, issuing 185m convertible preference shares plus US$1,346,730 cash including the US$500,000 loan. Ferguson becomes Entek's Managing Director.
15 Apr 2019asset acquisition disposition● NeutralMajor
Elixir completed the sale of Emerald House (13 leases, 149,590 acres) to Entek for 185m preference shares and US$846,730 net cash. Holders get about 0.475 Entek shares per Elixir share. Ferguson steps down as MD but stays as non-executive director; Young continues as CEO.
10 Apr 2019admin correction● Neutral
Both companies' shareholders have approved the Alaskan sale (the Elixir and Entek meetings are in the context as the votes). Completion moves to 12 April, with record date 17 April and distribution 29 April. Further updates if completion slips.
9 Apr 2019investor presentation● Neutral
QUPEX presentation in Brisbane comparing Mongolian CBM to Queensland, repeating the 7.6 Tcf risked estimate, seismic tender with 8 bidders and 2H 2019 drilling. No new information.
27 Mar 2019investor presentation● Neutral
Conference presentation repeating known points: 100% of Nomgon IX, ERCE's 40.1 Tcf unrisked and 7.6 Tcf risked, seismic in Q2 and drilling in 2H 2019. Notes Ferguson leaves Elixir on completion. No new results.
21 Mar 2019material agreement● Neutral
Timetable for the Entek sale: Elixir meeting 29 March, Entek 3 April, completion 10 April, record date 12 April. Holders get about 1 Entek share per 2 Elixir shares. Net cash about US$850,000 after repaying the US$500,000 loan. Board recommends voting in favour.
19 Mar 2019director officer appointment▲ Good
Elixir appoints Mongolia-based B. Byambasaikhan, through NovaTerra LLC, as strategic and financial adviser for Nomgon IX. He previously led Erdenes Mongol's financing for Rio Tinto's Oyu Tolgoi. An adviser role, not a board seat; no fee terms given.
15 Mar 2019half year report● Neutral
Half-year to 31 Dec 2018: loss of $978,642 (prior year $411,566), cash $1,594,305 and no debt. Covers the Golden Horde and Alaska acquisitions and Entek option already known. Meetings set for 29 March and 3 April, completion about 10 April.