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 with the tailing filter press, resolved by installing new units from China, resulting in increased plant capacity and output by year-end.

• Continued significant exploration and drilling at Al Wash-hi Majaza and surrounding blocks, with Phase-1 infill drilling completed and Phase-2 planned to expand resources and support long-term mine planning.

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

• Ongoing exploration at Awtad and Daris copper-gold projects, with new joint venture arrangements and progress on mining license applications.

Financial highlights

• Revenue surged to $55.3 million for FY2025, up from $5.5 million in FY2024, driven by copper concentrate sales.

• Net loss after tax widened to $19.0 million (FY2024: $10.6 million loss), reflecting higher production and finance costs.

• Total assets increased to $181.0 million (FY2024: $171.9 million), with total equity at $2.4 million (FY2024: $20.6 million).

• Cash and cash equivalents at year-end were $12.4 million, up from $4.4 million in the prior year.

• Net cash from operating activities was $8.6 million, a turnaround from a $12.0 million outflow in FY2024.

Outlook and guidance

• Plans to continue exploration and development in Oman and pursue new licenses in Oman and Saudi Arabia in FY2026.

• Anticipates higher plant throughput and revenue following plant upgrades and expanded exploration activities.

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