ASX Quarterly Wrap: Dubber drops magical ‘AI’ word, Austral beats copper production challenges
It’s the quarterly season again as the ASX market announcements page becomes increasingly flooded with update lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
AI communication service provider Dubber saw adjusted recurring revenue of $8.8m in Q4 FY23, up 18% on Q3 FY23 and 34% on the previous corresponding period (pcp), with FY23 revenues of $30m up 23% on FY22.
Operating cash receipts for the quarter were a record $10.2m, up 26% on Q3 FY23, and $36.1m for FY23, up 21% on pcp.
The company said its Vodafone UK customer migration is largely complete and that market penetration continues with new network agreements signed across the Americas, Europe and APAC in the quarter.
“Significantly, since the re-structure in March, the company is continuing the delivery of new solutions and supporting a growing partner and customer base in a more efficient, effective and cost-effective manner,” CEO and MD Steve McGovern said.
On 31 May, Dubber launched its initial ‘productised’ AI insights, Moments, comprising of a summarisation of calls, delivering actions discussed in the calls and an ‘out of the box’ complaints service which enables businesses to identify and manage complaints across their businesses.
“In a landmark event, the company launched its ‘world first’ AI products which have the propensity to revolutionise the global telecommunications industry by capitalising on its proven call recording and data capture platform to be part of the industry growth opportunity associated with its AI capability,” McGovern added.
Cash on hand at 30 June 2023 was $32.9m.
Copper production from the company’s Anthill mine was 2,315 tonnes for the quarter (down 13% qoq) at an AISC of US$3.05/lb copper sold due primarily to a reduced total ore stacked for processing, impacted by the severe wet weather event in the previous quarter (causing numerous road closures) and planned mill shutdown completed in March for mill line replacement.
Going forwards, the plan is to accelerate the pre-strip operation of the East Pit stage 2 to ensure the option of accessing three ore bodies – which will de-risk the mining operation prior to the next wet season and for the next two years and will reduce mining costs as the strip ratio for each pit will decrease.
Despite the decrease in Anthill production, AR1 was still cashflow positive.
“I am delighted to announce that despite the production challenges, we remain within 25 tonnes of our half yearly production target of 5,000 tonnes,” MD and CEO Dan Jauncey said.
“Our copper sales of 2,250 tonnes in the June quarter generated a net revenue of A$27.3 million, with operating cash flow amounting to $9.1 million.
“Additionally, we achieved a net mine cash flow of $2.4 million, considering one-off stripping costs of $6.69 million. These financial results reflect our operational efficiency.”
At Lady Colleen, the pre-feasibility study is progressing with metallurgical test work underway to materialise annual production increase to over 25,000 tonnes of Cu per annum combined with the existing production from Anthill, confirmed by the recent scoping study from CSA Global.
Notably, optimisation studies on previously mined high-grade pits (Lady Annie, Lady Brenda, Mount Clarke, and Flying Horse) have confirmed a potential additional ~94,000 tonnes of copper to be mined by the company in the next two to five years.
Austral held $2.4 million in cash at bank at the end of the quarter.
The June quarter represented a quarter of transition for Danakali as it managed the handover of operational management of the Colluli potash project in Eritrea to new owners Sichuan Road and Bridge Group (SRBG).
The balance of US$16 million (Tranche 2) is due to be received from SRBG on 30 September 2023, and the company is in the process of distributing 90% of the Colluli proceeds to shareholders.
DNK’s securities were suspended from quotation on the ASX from the close of market on 3 April 2023 following post the sale of Colluli Mining Share Company (CMSC), as the ASX determined that Danakali’s operations were no longer adequate to warrant the continued quotation of its securities.
The suspension will continue until Danakali is able to demonstrate compliance with Listing Rule 12.1 of the listing rules.
The company says its at “an advanced stage of assessing a number of potential new opportunities for the company in line with the strategy of being a leading exploration and development company in the critical minerals sector in Australia and Africa.”
Consolidated cash on hand was $168m as at 30 June 2023.
The UK telehealth provider met its annualised revenue run rate guidance for 1H23 of £42-£46m, with 190,800 consultations delivered, up 32.1% on pcp and up 3.4% quarter-on-quarter (qoq).
DOC says the increase in consultation volumes was driven by successful initiatives to increase GP supply in the period, ongoing growth in demand for its services, and the successful launch of the Mixed Clinical Workforce proposition in June which resulted in the highest quarterly volume of consultations to date.
Returning patients represented 73% of all consultations in the quarter, an increase of 4 percentage points compared to the pcp and an increase of 6 percentage points against the prior quarter.
The volume of returning patients increased by 35% from the pcp and by 13% qoq, demonstrating patient satisfaction with the service.
The company ended the quarter with £6.2m ($11.9m) cash on hand.
This has been further enhanced in Q3 2023 with the final £2.5m of loan drawn down under the AXA loan agreement that is expected to see the business through to profitability, with cash breakeven anticipated in Q1 2024.
The company’s primary focus during the quarter was the completion of the Saints nickel project scoping study and progressing exploration activities at both the Kangaroo Hills Lithium Project (KHLP) in WA and the Nevada Lithium Project (NLP) (80%) in Nevada, USA.
The scoping study confirmed the potential viability of the Saints project with simple infrastructure and mine development requirements supporting a small toll treatment operation within close proximity of several third-party operating concentrators – with twin box cut and decline developments centred on the St Patricks and St Andrews deposits, respectively.
At the KHLP, phase 2 diamond drilling returned some solid results including 27m at 1.32% Li2O from 64m (including: 4m at 2.5% Li2O from 80m).
Plus, target generative work identified seven new high priority LCT pegmatite targets over a total strike length of more than 3km.
At the NLP, assays from phase 1 RC drilling included 109.7m at 766ppm Li from 135.6m depth, including 29m at 1,010ppm Li from a depth of 210.3m, with phase 2 drilling complete and assays pending.
FBM also completed the sale of its 80% owned Nepean nickel project during the quarter for $10m and had a cash balance of around $3.04m as at 30 June 2023.
At Stockhead we tell it like it is. While Austral Resources, Danakali and Future Battery Minerals are Stockhead advertisers, they did not sponsor this article.