Black Canyon (BCA) H2 2024 earnings summary

Executive summary

• Achieved significant exploration success at the Balfour Manganese Field, delineating a Global Mineral Resource Estimate (MRE) of 314Mt @ 10.5% Mn, containing 33.1Mt of manganese, the largest in Western Australia and second largest in Australia.

• Completed a 7,000m RC drilling program, resulting in new discoveries and maiden MREs across multiple targets, including KR1, KR2, Balfour East, Pickering, and Damsite.

• Positive Scoping Study for KR1 and KR2 deposits confirmed a 16-year mine life, average annual operating cashflow of A$46.1m, and a payback period of less than two years.

• Successfully produced battery-grade High Purity Manganese Sulphate Monohydrate (HPMSM) from KR1, demonstrating technical capability for downstream processing.

Financial highlights

• Revenue and other income for FY2024 was $513,243, up from $40,625 in FY2023, mainly due to an R&D rebate.

• Loss before tax for FY2024 was $1,993,629, compared to a loss of $2,021,869 in FY2023.

• Net assets increased by $444,343 to $6,048,341 as at 30 June 2024.

• Cash and cash equivalents at year-end were $669,045, down from $1,126,920 in the prior year.

• Working capital at 30 June 2024 was $468,285.

Outlook and guidance

• Ongoing evaluation of cost-saving opportunities in mining, processing, and transport to improve project margins and reduce risk.

• Further exploration and development studies funded by a post-year-end placement of $850,000 and a planned share purchase plan to raise up to $500,000.

• Continued focus on advancing HPMSM production and expanding resource base through additional drilling.