Frontier Energy (FHE) Q2 2025 TU earnings summary

Executive summary

• Advanced strategic investor process with multiple definitive proposals; exclusive negotiations expected in Q3 2025.

• Progressed debt financing discussions following successful Capacity Investment Scheme (CIS) outcome.

• Major procurement for Waroona Project completed, keeping commercial operations on track for October 2027.

• Entered option agreement to sell non-core Pick Lake Zinc Project for $2.75 million.

Financial highlights

• Cash at 30 June 2025 was $5.3 million, down from $11.0 million at previous quarter end.

• $4.3 million spent on long-lead items for Waroona Project during the quarter.

• Net cash used in operating activities was $563,000 for the quarter.

• Net cash used in investing activities was $5.1 million for the quarter.

• Payments to related parties totaled $582,000 for the quarter.

Outlook and guidance

• Preferred strategic investor to be selected and exclusive negotiations to begin in Q3 2025.

• Plans to submit bids for both Stage One and Stage Two in the 2025 WEM CIS tender opening August 2025.

• No major capital spending anticipated until strategic partner selection.

• Waroona Project remains on schedule for commercial operations by October 2027.