Elixir Energy (EXR) H2 2024 earnings summary

Executive summary

• Major focus on the Daydream-2 well at the Grandis Gas Project in Queensland, with drilling reaching 4,300m and encountering a naturally permeable gas-bearing zone (Lorelle Sandstone) that flowed gas to surface without stimulation.

• Expansion of Grandis Project acreage by 14% through preferred tender status for PL2023-1-7, adding both deep and shallow gas prospects.

• In Mongolia, the Nomgon IX CBM pilot project achieved record water production and is on track for gas desorption breakthrough by end of 2024.

• Renewable projects in Mongolia, including hydrogen and solar, saw limited activity due to market conditions and strategic focus on gas.

Financial highlights

• Net loss before tax for FY24 was $1,501,266, a significant improvement from the prior year’s $2,942,854 loss, mainly due to a $1M gross profit from data sales and reduced share-based remuneration.

• Cash at 30 June 2024 was $7,665,422, down from $9,555,235, with $15.6M spent on Queensland gas appraisal and $6M on Mongolian CBM.

• Revenue from continuing operations was $1,671,820, with a gross profit of $1,000,000 from an information sharing agreement.

• Share-based payment expense for the year was $414,774, down from $1,339,476 in FY23.

• No dividends declared or paid for FY24.

Outlook and guidance

• Final flow testing at Daydream-2 expected to commence in late July 2024, with potential for material resource upgrades and increased industry interest.

• Nomgon IX CBM pilot in Mongolia expected to achieve gas breakthrough by end of 2024, opening up commercial and partnering opportunities.

• New Queensland acreage (PL2023-1-7) to add contingent resources and shallow drilling targets.

• Ongoing focus on capital discipline and potential for joint venture or third-party funding to support future development.