Charbone (CH) Q1 2025 earnings summary

Executive summary

• All permits secured for Sorel-Tracy facility; Hydro-Québec progressing on interconnection for 2025 production.

• Signed term sheet for up to US$50 million construction capital facility.

• Executed offtake agreement with a US Tier One industrial gases producer to diversify revenue.

• Management emphasizes disciplined financial management and lean administrative structure.

Financial highlights

• Revenue fell to $5,067 in Q1 2025 from $81,637 in Q1 2024, mainly due to reduced services at the dam after equipment failure.

• Net loss widened to $1,187,786 in Q1 2025 from $547,914 in Q1 2024.

• Negative cash flows from operating activities improved by 7% to $620,097 in Q1 2025 from $663,843 in Q1 2024.

• Cash at period end was $48,448, down from $69,689 at the end of Q1 2024.

Outlook and guidance

• Projected to begin production at Sorel-Tracy facility in 2025, supported by new capital facility and strategic partnerships.

• Management expects short-term growth potential with current project pipeline.