Chilwa Minerals (CHW) Q1 2025 earnings summary

Executive summary

• Completed Mposa sonic drilling: 821 holes over 8,515m, with 95% average recovery; higher reported grades prompted an early resource estimate upgrade.

• Expanded the program to a parallel heavy mineral sands (HMS), rare earth elements (REE) and ionic clays strategy, supported by a second sonic rig and an operational sample preparation laboratory.

Financial highlights

• Cash and cash equivalents were $4.652m at 31 December 2024; this excludes ~$2.4m of placement proceeds received after quarter-end.

• Quarterly net operating cash outflow was $499k, investing outflow $1.779m and financing inflow $4.597m; cash increased by $44k.

• Quarter-end cash and relevant outgoings of $1.694m indicated 2.7 quarters of estimated funding available.

Outlook and guidance

• Mposa assay results for batches 5–7 and metallurgical results were expected by late February or early March 2025; the resource upgrade is to follow receipt of those assays.

• March-quarter anticipated updates included Mposa and Mpyupyu HMS assays, REE soil results, Mposa East diamond drilling results, a scoping study and a mining licence application update.

• Drilling at Mpyupyu began with Sonic 1; Sonic 2 was scheduled to join, with the deposit’s 2015 data showing 7.1% THM in the dune resource.