Ardea Resources (ARL) H2 2024 earnings summary

Executive summary

• Achieved a landmark JV with Sumitomo Metal Mining and Mitsubishi Corporation, who will fully fund the Kalgoorlie Nickel Project (KNP) Goongarrie Hub DFS up to A$98.5M for a 35% stake, with an option to increase to 50% upon positive FID.

• KNP Goongarrie Hub PFS projects 30,000 tpa nickel and 2,000 tpa cobalt production, supporting a mine life exceeding 40 years.

• Post-tax NPV7 of A$4,980M, IRR of 23%, and payback period of 3.1 years; average annual EBITDA of A$800M over 40 years.

• Cash reserves of $14.8M as of 30 June 2024, with no debt and a disciplined capital structure.

• Strong ESG focus, with improved Digbee ESG score and no lost time injuries during the year.

Financial highlights

• Operating loss after tax for FY2024 was $7.7M (FY2023: $4.2M loss).

• Cash and cash equivalents at 30 June 2024: $14.8M (2023: $10.6M).

• Total assets: $59.8M; net assets: $55.2M.

• Basic and diluted loss per share: (4.01) cents (2023: (2.48) cents).

• Capitalised mineral exploration expenditure: $42.9M.

Outlook and guidance

• DFS for Goongarrie Hub underway, with completion targeted for H2 2025 and accelerated by Consortium funding.

• Consortium to increase ownership to 50% upon positive FID, with project development to follow.

• Market conditions for nickel and cobalt expected to improve, aligning with project development timeline.