Foresta Group Holding (FGH) Q4 2025 TU earnings summary

Executive summary

• Received extension from New Zealand Overseas Investment Office for flagship project, allowing more time to meet special conditions and advance negotiations in line with strategic objectives.

• Signed collaboration agreement with Energy Efficiency and Conservation Authority to assess geothermal steam use for process heat at Kawerau facility, supporting low-carbon manufacturing goals.

• Engaged consultants for earthworks tender at Kawerau plant; contract negotiations ongoing with preferred main contractor.

• Fast track consenting application underway, supported by government streamlined programme; planning team compiling necessary documentation.

• Final stages of contractual negotiations for forest supply; building partnerships with local Māori iwi and government bodies to align with regional development goals.

Financial highlights

• Net cash used in operating activities for the quarter was $780,000; year-to-date net cash used was $2,336,000.

• Cash balance at 30 June 2025 was $1,198,000.

• Payments to related parties, including director compensation and consulting fees, totaled $253,800 for the quarter.

• Received $800,000 in insurance recoveries during the quarter.

• Net cash from financing activities for the year was $3,533,000, including $2,575,000 from convertible debt and $1,230,000 from equity issues.

Outlook and guidance

• Estimated quarters of funding available is 1.5, with ongoing negotiations for further insurance claim payments and capital raising discussions with the New Zealand government and potential investors.

• Confident in ability to continue operations and meet business objectives based on expected funding and capital raising efforts.