Deutsche Rohstoff AG - The SiLLC Assembly

Preliminary consolidated figures for 2021

Preliminary consolidated figures for 2021

In fiscal year 2021, the Deutsche Rohstoff Group generated sales of EUR 73.3 million, EBITDA of EUR 65.9 million and consolidated net income of EUR 26.1 million.

Consolidated net income rises to EUR 26.1 million/Sales and EBITDA in line with forecast

March 14, 2022 – Mannheim – Deutsche Rohstoff AG – In fiscal year 2021, the Deutsche Rohstoff Group generated sales of EUR 73.3 million (forecast EUR 68 to 73 million; previous year: EUR 38.7 million), earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 65.9 million (forecast EUR 64 to 67 million; previous year: EUR 23.9 million) and consolidated net income of EUR 26.1 million (previous year: consolidated net loss – EUR 16.1 million). Sales and EBITDA are thus in line with the increased forecast published in January (see release dated 20 January 2022). Overall, the forecast was raised three times during the year due to the good operating performance, acquisitions and rising oil & gas prices.

For the current year, the Executive Board expects a further significant increase in sales and EBITDA. According to the forecast published in January, sales will amount to EUR 126 to 134 million and EBITDA to EUR 97 to 102 million. This does not yet include revenues from the cooperation with Oxy, which may be incurred from Q4 2022 onwards. Drilling from one of the two well sites in which Salt Creek has an interest commenced on schedule in mid-February.

The equity and bond portfolio, which had been established from April 2020, contributed a realized return of EUR 17.5 million in 2021. There was also unrealized income of EUR 4.4 million as of 31 December 2021. Oil and gas hedging to hedge price risks resulted in a loss of EUR 14.3 in 2021 (previous year: gain of EUR 12 million).

Liquid funds (bank balances and securities held as current and non-current assets) available to the Group as of 31 December 2021 amounted to approximately EUR 36.8 million (previous year: EUR 36.0 million). Equity rose to EUR 79.8 million (previous year: EUR 45.6 million), increasing the equity ratio to 30% (previous year: 22%). Liabilities amounted to EUR 148 million (previous year: EUR 138.6 million). Net liabilities (cash and cash equivalents minus liabilities from bonds and to banks) decreased to EUR 80.5 million (previous year: EUR 92.4 million).

All figures for 2021 are preliminary and unaudited. Deutsche Rohstoff AG is expected to publish the audited consolidated financial statements and the annual report on 25 April 2022.

The Knight pad is on track for peak production. As reported, it is expected in Q2 2022. Currently, the wells are already producing 3,000 to 3,500 barrels of oil per day.

Mannheim, 14 March 2022

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

************************

Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

10% stake in Rhein Petroleum sold

The UK-based company Beacon Energy plc announced today that it has acquired all of the shares in Rhein Petroleum GmbH from Deutsche Rohstoff AG (10%) and Tulip Oil Holding (90%).

Mannheim, Dezember 16, 2022

British Beacon Energy plc acquires Rhein Petroleum/Deutsche Rohstoff receives shares and a revenue share

Mannheim. The UK-based company Beacon Energy plc (AIM: BCE; “Beacon”) announced today that it has acquired all of the shares in Rhein Petroleum GmbH from Deutsche Rohstoff AG (10%) and Tuilp Oil Holding (90%), (please see www. beaconenergyplc.com). As part of the sale, Deutsche Rohstoff will receive a share in Beacon of around 3.3% as well as a revenue share of around 1% of the future net returns from Rhein Petroleum’s production (“earn out”).

The value of the 3.3% stake in Beacon will initially be around EUR 0.3 million after the transaction and a capital measure. Considerable further potential arises from the “earn-out” agreement. Beacon intends to further develop Rhein Petroleum’s existing acreage and significantly increase production.

In 2011 and 2012, Deutsche Rohstoff AG sold its majority stake in Rhein Petroleum to Tulip Oil. This resulted in a profit of around EUR 9.8 million. Under the Shareholders’ Agreement concluded at that time, Deutsche Rohstoff AG had undertaken to sell its own remaining shares in the event of Tulip Oil selling the majority of the shares. This agreement was now applied.

Irrespective of this, Deutsche Rohstoff AG considers the transaction to be positive. The shares in Beacon are traded on the AIM segment of the London Stock Exchange. Tulip Oil also replaces the guarantees in the amount of approximately EUR 1.5 million that Deutsche Rohstoff AG had provided to the mining authority in Hesse.

Mannheim, 16. December 2022

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

************************

Deutsche Rohstoff AG Establishment of a lithium exploration subsidiary in Australia

Deutsche Rohstoff AG and its Australian partner SensOre have established the Australian subsidiary Exploration Ventures AI Pty Ltd.

Joint Venture with SensOre/Focus on Western Australia

Mannheim, 23. January 2023 Deutsche Rohstoff AG and its Australian partner SensOre (ASX: S3N) have established the Australian subsidiary Exploration Ventures AI Pty Ltd (“EXAI”). The company is focused on the exploration of lithium in Western Australia. Deutsche Rohstoff AG will hold a 70% share in the company. Since formation, EXAI has already secured three early-stage exploration projects through three Farm-in agreements and one exploration license application.

Since early 2022, SensOre and Deutsche Rohstoff AG had identified particularly prospective targets based on SensOre’s technology. The approach combines artificial intelligence (AI) technology, big data and comprehensive geoscientific know-how. With this approach, SensOre aims to become a global leader in minerals targeting.

The focus is on Western Australia (“WA”), as the state is not only one of the world’s most active and successful mining regions, but also currently accounts for approximately 90% of the lithium mined from hard rock. In addition to the world’s largest lithium (spodumene) mine, the Greenbushes Mine in the southwestern part of the state, other projects have begun production in recent years and new deposits have been discovered. Thus, the successful identification of a lithium deposit in WA holds tremendous potential.

The three projects identified to date are very promising from the perspective of the EXAI Joint Venture, but additional potential targets are being evaluated in parallel and possibly acquired. In the context of early-stage exploration, an initial small investment is common, after which a decision is made as to which projects will be pursued and which lack sufficient prospectivity.

Exploration expenditures for the initial Farm-ins amount to approximately AUD 1 million (EUR 0.64 million) in the first 12 to 18 months after successful due diligence, which will be spent mainly on initial geological and geophysical exploration work. The share of Deutsche Rohstoff AG in these expenditures amounts to 70% in accordance with the share in EXAI. With positive results and indications, a decision will be made on a drilling program for individual projects. Under the three Farm-in agreements and with positive results, the Joint Venture could invest about AUD 10 million (EUR 6.5 million) over the next 4 to 4.5 years to acquire a 51-80% interest in the projects.

The two Farm-ins include the Gecko North project about 60 km Northwest of the Mt Marion lithium mine as well as parts of the Montague project about 100 km west of the Kathleen Valley lithium deposit. In addition, the Joint Venture has submitted a wholly-owned exploration application for the Bowgarder Well license in the western Yilgarn Craton approximately 300 km North of the city of Perth.

Lithium represents an indispensable component in current battery technologies. Therefore, even in more conservative scenarios for the electric car sector, massive additional demand for lithium is expected. The price for the most common lithium mining product, spodumene concentrate (SC6), has increased since 2020 from around 500 USD/ton to currently around 6,000/USD per ton. Deutsche Rohstoff AG sees the Joint Venture with SensOre as a unique opportunity to participate in this exciting market and to find economically interesting lithium deposits.

Mannheim, 23. January 2023

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

************************