Chilwa Minerals (CHW) H2 2024 earnings summary

Executive summary

• ASX listing in July 2023 enabled acquisition of 100% of the Chilwa Heavy Mineral Sands Project, an 878.7 km² exploration project in Malawi with an existing inferred JORC resource.

• Sonic drilling at Mposa returned high-grade intersections and higher sample recoveries than earlier drilling; results indicated potential for greater thickness and grade than the historic resource assumptions.

• The year ended with $4.15 million cash and a $1.74 million net loss; the auditor highlighted material uncertainty related to going concern.

Financial highlights

• FY2024 interest revenue was $202,811; net loss was $1,742,745 versus $1,022,744 in FY2023.

• Cash and cash equivalents were $4,151,024 at 30 June 2024, down from $8,022,417 a year earlier.

• Exploration expenditure was $2,414,454, versus $68,886 in FY2023; all FY2024 exploration expenditure was capitalised.

• Net cash outflows were $1,758,803 from operations, $1,679,315 from investing and $404,144 from financing in FY2024.

Outlook and guidance

• Metallurgical testwork is intended to confirm prior results, identify optimisation opportunities and assess production of individual mineral sands products; results were expected early in FY2025.

• Diamond drilling to test the full clay and sand sequence was expected to commence in Q4 2024; sonic drilling was to continue on its planned spacing.

• Exploration plans include testing the Namasalima target and using airborne geophysical data to refine heavy mineral sands and rare earth targets.

• Directors’ cash-flow forecasts through September 2025 indicated possible additional funding needs; planned exploration spend can be adjusted subject to results.