AUSTRALIA: Queensland Pacific Metals Ltd (ASX:QPM), a key player in sustainable mining and energy solutions, has announced a strategic realignment to expedite the growth of its gas and energy assets.
This shift, aimed at enhancing shareholder value and addressing the urgent energy needs in Eastern Australia, will focus on expanding and enhancing the Moranbah Gas Project (MGP).
The decision to prioritise the MGP follows a comprehensive portfolio review and market analysis.
The project is expected to play a crucial role in addressing forecasted gas supply shortfalls and supporting the transition to renewable energy sources, as outlined by recent Australian Energy Market Operator (AEMO) forecasts.
QPM plans to increase investment in the Moranbah Gas Project to boost production and supply capabilities.
The company also aims to reduce carbon emissions by managing coal mine waste gas and converting it into a valuable energy resource.
Additionally, QPM intends to enhance its participation in the National Electricity Market (NEM) by expanding its generation capacity to support the grid with reliable baseload and peaking generation.
In line with the strategic realignment, David Wrench, currently CEO of QPM Energy, will assume the role of CEO of QPM.
His leadership is expected to drive significant progress, leveraging his successful track record and deep industry expertise.
Given the challenging market conditions for nickel and battery metals, QPM will scale down further expenditures on its TECH Project.
However, the company remains committed to exploring alternative funding solutions and collaborations to advance the project.
As part of the corporate realignment, John Abbott will transition from Chairperson to Non-Executive Director, Dr Stephen Grocott will shift from Managing Director and CEO to Non-Executive Director focusing on the TECH Project, and Ariel “Eddie” King will step in as Interim Chairperson.
QPM plans to propose a corporate name change to better reflect its new strategic focus, pending shareholder approval.
Incoming QPM CEO David Wrench stated: “Since completing the acquisition of the Moranbah Project, we have uncovered many exciting opportunities to grow production, reserves, and customer sales. Accelerating these opportunities will position QPM Energy to take advantage of the tailwinds in the Australian gas and energy sector to deliver value for shareholders.”
Outgoing QPM CEO Dr Stephen Grocott commented: “In light of underlying nickel market conditions, this is the right decision for the Company. History shows that nickel is a cyclical commodity, and I look forward to working with the company and key stakeholders to secure a pathway forward for the TECH Project.”
