Atlas Lithium (ATLX) Q2 2024 earnings summary

Executive summary

• Atlas Lithium is advancing its hard-rock lithium project in Minas Gerais, Brazil, with a modular plant targeting 150,000 tpa lithium concentrate in Phase I and potential expansion to 300,000 tpa in Phase II.

• The company completed key milestones: 80% of geotechnical drilling, metallurgical studies, and trial assembly of the modular DMS plant; SAP enterprise software was installed.

• Apollo Resources, 47.58% owned, received a 10-year iron ore mining license; Jupiter Gold, 22.3% owned, began quartzite exports.

Financial highlights

• Net loss for the six months ended June 30, 2024, was $25.6M, up from $13.9M in the prior year, mainly due to higher G&A and stock-based compensation.

• Revenue for the six months was $374K, with a gross margin of $180K, reflecting initial quartzite sales.

• Cash and cash equivalents as of June 30, 2024, were $32.3M; working capital was $27.3M.

• Net cash used in operating activities was $13.7M, and net cash used in investing activities was $14.3M, mainly for plant acquisition.

• Net cash provided by financing activities was $30.1M, primarily from a $30M private placement to Mitsui.

Outlook and guidance

• Management believes current cash is sufficient for at least 12 months of working capital and capex needs.

• Future capital requirements depend on project development, exploration, and successful plant installation.