AusQuest (AQD) Q4 2024 TU earnings summary

Executive summary

• Drilling at the Waterfall Prospect (Morrisey Project) intersected significant coarse-grained magnetite, with assays indicating potential for a premium iron product (>70% Fe); DTR test work is underway to confirm recoveries and product grades.

• Gravity and EM surveys commenced at Balladonia to identify drill targets along the Tea Tree Trend, targeting Broken Hill style mineralisation; further drilling is planned under the SAA with South32.

• In Peru, drilling at Cerro de Fierro confirmed continuity of copper-gold mineralisation, with evidence for better grades at depth; Playa Kali was upgraded to drill status after recognition of outcropping manto copper mineralisation.

• Ongoing discussions with potential joint venture partners for copper projects in Peru, with site visits and reviews in progress.

• Quarter-end cash position was ~$1.1 million, with an additional $962,000 received in July for work programs under the SAA.

Financial highlights

• Cash and cash equivalents at quarter-end were $1.07 million, down from $2.65 million in the previous quarter.

• Net cash used in operating activities was $(34,000) for the quarter; net cash used in investing activities was $(1.51) million, mainly for exploration and evaluation.

• Additional $962,000 in funding received post-quarter from South32 under the SAA.

• Estimated quarters of funding available at current spend rate is 0.67, but further SAA funding is anticipated.

Outlook and guidance

• Completion of gravity and EM surveys at Balladonia to define drill targets.

• Assessment of DTR results at Waterfall and Bilga South to guide further drilling.

• RC drilling at Moora planned for Q4 2024, pending access preparations.

• Continued advancement of joint venture discussions in Peru and commencement of drill permitting at Playa Kali and Lantana.