Falcon Metals (FAL) Q3 2025 TU earnings summary

Executive summary

• QEMSCAN test work confirmed high-quality mineral concentrates at the Farrelly Mineral Sands Deposit, with clean zircon, rutile, and ilmenite streams and >99% recovery of monazite and xenotime; further test work is planned to assess REE content and improve ilmenite quality.

• Land access issues at Farrelly prompted a submission to the Office of the Mining Warden to mediate further exploration access.

• Regional mineral sands drilling returned no significant intercepts; focus shifts to gold exploration at Pyramid Hill, where multiple gold-bearing structures and new targets have emerged.

• Cash balance at quarter-end was $8.3 million, with sufficient funding for over five quarters at current expenditure rates.

Financial highlights

• Operating cash outflow for the quarter was $1.53 million, mainly driven by $1.33 million in exploration and evaluation costs.

• Interest income for the quarter was $0.12 million.

• Cash and cash equivalents at quarter-end stood at $8.35 million, down from $9.93 million in the previous quarter.

• Payments to related parties totaled $0.13 million, primarily director fees.

Outlook and guidance

• Additional aircore drilling is planned at the Loddon Vale gold target and along the Whitelaw Fault in the next season.

• Further metallurgical test work at Farrelly is contingent on securing land access and additional drilling.

• Results from the Errabiddy Gold Project soil sampling are expected in May 2025, with follow-up programs planned.