Cornish Metals (TIN) Q2 2024 earnings summary

Executive summary

• Appointed Don Turvey as CEO, effective September 1, 2024, bringing over 40 years of mining experience.

• Completed Preliminary Economic Assessment (PEA) for South Crofty, confirming economic viability and long mine life.

• Advanced refurbishment of New Cook's Kitchen shaft and ongoing mine dewatering at South Crofty.

• Sold Mactung and Cantung royalties for US$4.5 million and agreed to sell Nickel King property for up to C$8 million.

• Purchased 7.7 acres of land adjacent to South Crofty, improving site access and future development potential.

Financial highlights

• Loss for the six months ended June 30, 2024: C$4.1 million, up from C$0.9 million year-over-year.

• Total operating expenses rose to C$4.6 million from C$2.0 million, driven by higher travel, marketing, and CEO termination costs.

• Net cash used in operating activities: C$2.3 million; investing activities: C$17.8 million.

• Cash at period end: C$6.0 million, down from C$39.9 million in the prior year.

• Expenditure highlights: C$1.7 million on equipment, C$2.8 million on land, C$2.9 million on dewatering, C$6.1 million on project advancement.

Outlook and guidance

• Targeting South Crofty production start in 2027.

• Dewatering and shaft refurbishment to be completed by September 2025.

• Project engineering, procurement, and early construction works planned through 2025.

• Additional financing required before end of 2024 to progress development.