Element 25 (E25) H2 2024 earnings summary

Executive summary

• Completed feasibility study for Butcherbird expansion to 1.1Mtpa manganese, showing robust economics: pre-tax NPV A$228M, IRR 113%, and annual cashflow A$57.3M.

• Suspended Butcherbird production in early 2024 to focus on expansion; considering restart due to market shifts and African supply disruptions.

• Advanced HPMSM refinery project in Louisiana, USA, with site secured, Title V Air Permit received, and selected for US$166M DOE grant negotiations.

• Secured US$57M in Louisiana state tax incentives and US$115M in funding/offtake agreements with GM and Stellantis.

• Raised A$643K via Share Purchase Plan to support expansion and US project.

Financial highlights

• FY24 revenue: $13.3M (down from $33.5M in FY23) due to reduced shipments.

• Cost of sales: $30.4M (FY23: $47.5M); operating loss after tax: $21.5M (FY23: $24.9M).

• Cash balance at 30 June 2024: $11.3M.

• No dividends declared or paid.

Outlook and guidance

• Progressing Butcherbird expansion and HPMSM facility construction in Louisiana.

• Exploring Butcherbird restart to capitalize on higher manganese prices.

• Multiple financing proposals under review to secure remaining funds for US project.