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Group 6 Metals Receives $14.3M R&D Grant

15 January 2024 08:36
ASX: G6M

Group 6 Metals (ASX:G6M) has announced it has finally received the $14.3 million Research and Development (R&D) cash refund, following its Tax Incentive Application at the end of the 2023 financial year.

The Company intends to utilise the funds to advance its Dolphin Tungsten Mine (DTM), located on King Island in Tasmania, Australia.

The R&D Tax Refund

The R&D Tax Incentive rebate is a government incentive which offers an 18.5% refundable tax offset on qualifying R&D expenses for companies with aggregated turnover below $20 million.

Group 6 Metals was in a tax loss position as of the end of June 2023, enabling them to apply for the scheme, receiving a refundable offset as a $14.1 million cash refund, including $160,000 in interest.

This vital cash injection significantly supports activities at the Dolphin Tungsten Mine, which continues to increase plant efficiency and performance optimisation activities.

In December, the Company announced the Mine has reached a new daily ore processing record, standing at 1,000t of high-grade ore over 24 hours, marking a steady climb towards its nameplate production capacity.

Processing at this rate equates to an hourly throughput of 44 tph or 73% of the design nameplate capacity. This increase in production demonstrates a 112% increase month on month, resulting in 60 dry tonnes (dt) of concentrate.

The R&D refund facilitates this continued growth at DTM, which is well-positioned to deliver larger volumes in the future, solidifying its role as a reliable supplier of tungsten concentrate.

The current focus of the Company is to increase plant efficiency, whilst improving recovery and head grade of ore produced, forecasting by June, head grade should increase to an average of 1.1% WO3.

Company Comments

Group 6 Metals Managing Director and Chief Executive Officer, Keith McKnight, said the Company is pleased to have received this government support for its unique critical and strategic mineral Project to supply Tungsten concentrate.

“We are delighted to receive the full claim from our FY2023 R&D application as we have invested significantly in innovation to maximise the long-term potential of this important strategic asset,” he said.

“The Company aims to continue this commitment to innovation as it seeks to produce higher value tungsten products through additional downstream processing at the Dolphin Mine in the future.”

“Beyond boosting efficiency and productivity, the R&D Tax Incentive scheme unlocks vital resources for innovation and technological advancements.”

“This competitive edge will prove crucial as we seek to use the knowledge and expertise gained at Dolphin to position the Company to acquire and develop other high-grade tungsten opportunities.”

G6M’s Australian Securities Exchange-listed share price has risen 1.28% and is currently trading at $0.079 today (8.30am UTC+ 8 hours).

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