European Lithium (EUR) H2 2024 earnings summary

Executive summary

• Completed merger with Sizzle Acquisition Corp, forming Critical Metals Corp (CRML), which began trading on NASDAQ in February 2024; EUR received US$750m in CRML shares at closing.

• CRML included in Russell indices and acquired a 42% stake in the Tanbreez Project, a major rare earth asset in Greenland.

• EUR agreed to acquire a lithium project in Ireland using CRML shares as consideration.

• Despite operational progress, share price declined in line with lithium market trends.

• As of June 30, 2024, market value of EUR's CRML holding was A$1.145 billion, not reflected in the balance sheet due to accounting standards.

Financial highlights

• Net loss of $212.6m for FY2024, compared to $12.2m net loss in FY2023.

• Major non-recurring expenses: NASDAQ listing ($118.8m), finance costs ($56.1m), loss on fair value of warrants ($31.4m), merger expenses ($5.0m), and share-based payments ($1.2m).

• Revenue from other income was $452k, down from $743k in FY2023.

• Cash and cash equivalents at year-end: $5.8m (down from $13.1m in FY2023).

• Total assets: $109.8m; total liabilities: $113.5m; net deficiency: $3.6m.

Outlook and guidance

• Management believes lithium prices have bottomed and expects recovery, which could enhance shareholder value.

• Ongoing efforts to secure additional capital and funding; no formal arrangements finalized as of report date.

• Group's ability to continue as a going concern depends on raising further capital, warrant exercises, and support from creditors.