Chilwa Minerals (CHW) Q3 2024 earnings summary

Executive summary

• June-quarter activity focused on the 17,000m sonic drilling program at Mposa; first assays covered 50 holes and 575m, with results showing higher grades and improved sample recovery versus historic drilling.

• The wider project has an Inferred resource of 61.6Mt at 3.9% THM, containing 2.4Mt THM; Mposa Main accounts for 19.4Mt at 4.3% THM.

Financial highlights

• Cash and cash equivalents were $4.104m at 30 June 2024, versus $4.809m at the prior quarter-end; estimated funding runway was 5.8 quarters.

• Net operating cash outflow was $705,000 for the quarter; exploration and evaluation payments were $451,000, staff costs $162,000 and administration/corporate costs $135,000.

Outlook and guidance

• September-quarter plans include ongoing Mposa sonic drilling results, geophysical survey results to define REE targets, REE results from upper sonic-drill levels, diamond drilling of REE targets and ALS lab installation.

• Diamond drilling to test the thicker clay horizon is planned after airborne geophysics results are received.