Alara Resources (AUQ) H2 2025 earnings summary

Executive summary

• Achieved first full year of commercial production at the Al Wash-hi Majaza copper-gold mine in Oman, with 22,215.4 WMT of concentrate shipped in 18 consignments, primarily to China under an offtake agreement with Trafigura.

• Faced operational challenges due to underperforming tailing filter press, resolved by installing two new units from China, boosting plant output by year-end.

• Continued extensive exploration and drilling at Al Wash-hi Majaza and surrounding areas, with Phase-1 infill drilling completed and Phase-2 planned for FY26.

• Expanded exploration portfolio with the grant of Block 22B (1,448 km²) in Oman, consolidating previous licenses and targeting copper, gold, chromite, and PGEs.

• No dividends declared or paid during the year.

Financial highlights

• Revenue for FY25 was $55.3 million, up sharply from $5.5 million in FY24, driven by copper concentrate sales.

• Net loss after tax widened to $19.0 million (FY24: $10.6 million loss), reflecting higher production and finance costs.

• Cash and cash equivalents at year-end increased to $12.4 million (FY24: $4.4 million).

• Total assets rose to $181.0 million (FY24: $171.9 million); total liabilities increased to $178.6 million (FY24: $151.3 million).

• Net cash from operating activities was $8.6 million (FY24: -$12.0 million), with $1.9 million used in investing and $31.8 million provided by financing activities.

Outlook and guidance

• Plans to continue exploration and development in Oman and pursue new licenses in Oman and Saudi Arabia in FY26.

• Anticipates higher plant throughput and revenue following filter press upgrades.

• Directors expect to raise additional equity in Q1 2026 to cover a projected $5.9 million cash shortfall.