GREENX (GRX): June 2016 Quarterly Report - raport 15
UNI - EN REPORT No15/2016
JUNE 2016 QUARTERLY REPORT
HIGHLIGHTS:
•Coal 2.0 – The Polish Government has outlined plans to unlock the industrial potential of the Lublin Coal Basin, under the catchphrase “Coal 2.0”, where the Ministry of Development will support the development of modern installations for coal utilisation
•Coal Markets Continue to Improve – Global coal prices have improved by 30% in 2016 and are forecast to recover further over the medium to long term. Coal is set to remain critical to Poland’s energy future, currently providing over 80% of the country’s energy needs
•Development Funding Commences – Preliminary discussions with strategic partners, EPC contractors, global project finance bank and potential offtakers have now commenced following the excellent results of the pre-feasibility study published last quarter
•Permitting Milestones – Prairie completed a number of significant work streams in relation to the ongoing Mining Concession application including:
oCompleted a draft Deposit Development Plan, which was submitted to Polish experts for initial review and optimisation
oMade substantial progress on the ESIA, with the environmental consent procedure officially initiated by the Regional Director for Environment Protection in Lublin
oCommenced local land rezoning amendments with municipal authorities in the Project mine area
oContinued the land acquisition process aimed at securing access to the planned surface infrastructure sites for Project development
oLodged an Application for a power grid connection for the Jan Karski Mine with the regional power distributor
oProgressed with the planned railway spur line connection to the national railway network which was officially included in the Lublin Regional Development Strategy during the quarter
•Hydrogeological analysis continued in order to provide enhanced hydrogeological data for the ESIA
•Jan Karski Mine Location was formally announced which received strong government and community support
Corporate:
•Strong Financial Position – Prairie has cash on hand of A$18.1 million and is in a strong financial position to progress with its planned development activities
•Strong Warsaw market following – Prairie continues to receive extensive and positive media coverage as well as a growing following in the Warsaw market
GOING FORWARD:
•Advance discussions with strategic partners, project debt providers and offtakers to structure a development financing package for the Jan Karski Mine
•Definitive Feasibility Study to commence after all Project options have been suitably examined and an ultimate “go forward” case has been selected
•Project permitting activities including the ESIA, spatial planning and land acquisition will progress as part of the mining concession application
•Continued development activity across the LCP specifically aimed at improving knowledge of hydrogeological conditions and confirming engineering and design requirements for the shafts
•Progress with the planned railway spur line connection from the Project into the national railway network based on cooperation with Lublin regional authorities
For further information on the Company's activities conducted during the quarter, please refer to full June 2016 Quarterley Report and Appendix 5B attached as an annex to this report.
For further information contact:
Ben Stoikovich Artur Kluczny
Chief Executive Officer Group Executive - Poland
+44 207 478 3900 +48 22 351 73 80 info@pdz.com.au
