Prospect Resources
Financials:
Primary tickers: ASX:PSC, FRA:5E8
Stage of development: Exploration, Development, Production
Primary minerals: Lithium, REE, Copper and Nickel
Projects to promote: Step Aside and Omaruru Lithium Projects
Project locations: Zimbabwe, Namibia
Website: prospectresources.com.au
Prospect Resources Limited (ASX: PSC, FRA:5E8) is an Australian-based mineral exploration and development company focused on opportunities in future-facing critical battery and electrification metals.
Prospect holds strategic interests in three high quality projects across sub-Saharan Africa. The Omaruru Lithium Project in Namibia, a 90% ownership position in the Step Aside Lithium Project in Zimbabwe, and the Kesya Rare Earths Project in Zambia.
This southern African portfolio of exploration assets offers an excellent opportunity for further resource discoveries and a good base from which to grow substantial value for its shareholders.
Cash: AUD 25M
Debt: NIL
Major shareholders:
CITICORP Nominees – 21.24%
JP MORGAN Nominees – 10.94%
Morgan Stanley Nominee – 6.25%
HSBC Nominee – 5.74%
BNP PARIBAS Nominee – 4.17%
Management ownership- 7%
Map of Projects
Management Profile
Mr Sam Hosack, Managing Director
Mr Sam Hosack is the Managing Director of Prospect Resources. Sam is a proven senior mining executive with over 20 years’ experience within the global resources sector. He joined Prospect in 2018 and was instrumental in leading the advancement, feasibility evaluation, early piloting operations and subsequent strong value realisation of the Arcadia Lithium Project in Zimbabwe via its cash sale to Huayou Cobalt in 2022.
Prior to joining Prospect, Mr Hosack held senior managerial and operations roles over 12+ years at leading global miner, First Quantum Minerals Ltd. His broader project development, mining and operations experience encompasses northern, central and southern Africa, Europe, Australia and Central America.
Mr Hosack holds a Bachelor of Engineering (BEng Hons) from Essex University, Master of Business Administration (MBA) from Ashcroft Business School (UK), AICD accreditation and relevant professional registrations.
What is your rationale for taking part in 121 Mining Investment?
To promote the current and future activites of the organisation, to discuss the pathways to production and to evaluate potential joint venture opportunities.
What recent news would you like to highlight to investors attending?
Prospect is rapidly advancing exploration drilling programmes at the Omaruru and Step Aside Lithium Projects.
Phase 3 Drilling has recently commenced at Step Aside in July 2023. At Omaruru, Prospect is moving forward with a Phase 2 exploration program targeting expanded mapping, soil sampling and RC drilling at prospective targets.
The Company expects to update shareholders once further results from these programs become available.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Drill out discovery targets at Omaruru and Step Aside
6 Months:
MRE for the two key lithium projects
12 Months:
Developments on project development/construction, pilot plant operations and development preparedness.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Market conditions for listed exploration and development companies have remained unfavourable over the past few months, exacerbated by deflated market prices for Lithium.
Despite this ongoing market turmoil, the Company has been considerably better placed relative to many of its peers. Prospect remains well-funded and well-resourced with a significant pipeline of advanced battery and electrification mineral targets.
What do you think makes your company such a compelling investment?
The Prospect management team possesses deep, proven expertise in efficiently exploring for, rapidly advancing and successfully delivering world-class mineral projects in Africa. This team is based across Perth, Western Australia, and Harare, Zimbabwe, and is applying its specialist skillset to identifying, acquiring, progressing and developing value-accretive critical minerals projects.
The Company has a proven track record of providing substantial shareholder value generation through the systematic de-risking and advancement of the world-class Arcadia Lithium Mine Project from 2016 to early 2022. The Arcadia Project was subsequently sold to Zhejiang Huayou Cobalt in April 2022 for approximately US$378 million.
The Company is now focused on the exploration and development of the Omaruru and Step Aside Lithium Projects which to date have returned promising exploration results.
What are the top 3 key investor takeaways?
1. Proven ability and successful track record in designing, developing and delivering battery minerals projects in Africa
2. Well-credentialled Board and Management team, focused on creating and realising long term shareholder value
3. Significant experience in mineral exploration, technical flowsheet design and marketing