Sunrise Energy Metals: Half-year accounts – December 2021

Directors’ report



The consolidated entity recorded a net loss after tax from continuing operations for the six monthsyear of $10,200,000 (December 31, 2020: loss of $8,624,000). During the financial semesteryear, the revenues of the consolidated entity from continuing operations increased to $317,000 (December 31, 2020: $27,000).

Continued development of Project Sunrise resulted in a net cash outflow of $8,328,000 from operating activities during the six monthsyear (December 31, 2020: net outflow of $11,578,000). This net outflow of cash from operating activities was largely funded by existing cash reserves.

The net assets of the consolidated entity increased during the semesteryear from $6,634,000 to $29,122,000 (June 30, 2021: $22,488,000). Working capital, being current assets less current liabilities, was a surplus of $29,100,000 (June 30, 2021: $22,458,000 surplus), with cash reserves increasing from $54,657,000 to 29,305,000 $ during the semesteryear.


During the financial semesteryear, the consolidated entity continued to advance the development of the Sunrise Battery materials complex (“Sunrise project”) and its portfolio of exploration concessions. A series of areas of work remain in progress to advance a certain number of valuesadd deliverables aimed at minimizing project start-up time once funding is obtained.

Conditional financial support from Export Finance Australia

After the end of the financial semesteryear, a letter of conditional financial support was received from Export Finance Australia (“EFA”) for debt financing of up to A$400 million for Project Sunrise.

EFA is Australia’s export credit agency and provides financial solutions to support Australian exporters through loans, guarantees, bonds and insurance. EFA also manages the Australian Government’s $2 billion Critical Minerals Facility, which was established in 2021 to support projects aligned with the Australian Government’s “Critical Minerals Strategy” and which are otherwise in Australia’s national interest. ‘Australia.

Major Project Status Award

During the financial semesteryear, Australia’s Minister for Industry, Energy and Emissions Reduction, the Honorable Angus Taylor, MP, awarded Project Sunrise Major Commonwealth Government Project status. The awarding of Major Project status formally recognizes the importance of Project Sunrise to the Australian economy and regional communities in New South Wales.

Permits and Approvals

The consolidated entity completed a Project Execution Plan (“PEP”) in late 2020. Undertaken by an integrated team of Sunrise Energy Metals and Fluor Australia Pty Ltd, the PEP updated the 2018 Definitive Feasibility Study , incorporating revised cost estimates, updated design and engineering work. as well as a revised master schedule for engineering, procurement, construction, commissioning and rampingof the Sunrise project. The PEP resulted in several improvements to the layout and design of the project, requiring some changes to be made to the Sunrise Project Development Consent – ​​the key approval from the NSW State Government. During the financial semesteryear in which the consolidated entity advanced the process of approving these changes. Final approval for these changes (Mod 7) was received in January 2022.

Progress continues over timeScope of work on the electrical lead transmission line. The request for connection to the NSW power grid is currently in progress and will continue until CY22. Connecting to the NSW power grid is a key part of the consolidated entity’s commitment to source renewable energy to meet 100% of Project Sunrise’s external energy needs.

The consolidated entity also continued to advance commercial discussions with landowners, local councils, the New South Wales State Government and other relevant parties required for land access agreements for key infrastructure including water pipe and power transmission line.

About Warren Dockery

Check Also

UAE and Greece to set up $4.2 billion investment initiative

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the …