Frontier Energy (FHE) Q3 2024 TU earnings summary

Executive summary

• Updated Definitive Feasibility Study (DFS) for Stage One of the Waroona Renewable Energy Project due in November, reflecting reduced equipment costs and higher forecast energy prices.

• Multiple non-dilutive financing options under assessment, including bonds and equipment supplier financing.

• Environmental and biodiversity studies commenced to support future project expansion, with results expected late 2024.

• Cash and receivables at 30 September 2024 totaled $15.4m, with $10.4m in cash and a $5.0m AEMO security refund post quarter-end.

Financial highlights

• Cash and cash equivalents at quarter-end were $10.4m, up from $8.3m in the previous quarter.

• $16.75m raised via placement of 67 million shares at $0.25 per share before costs.

• Net cash used in operating activities for the quarter was $(0.77)m; net cash used in investing activities was $(11.2)m.

• Net cash from financing activities was $15.6m for the quarter.

• Payments to related parties during the quarter totaled $527,000.

Outlook and guidance

• Updated DFS to be released in November 2024, incorporating lower capital costs and higher energy price forecasts.

• Environmental study results expected late 2024 to inform Stage Two development location.

• Approval strategy and offset plan for expansion to be developed in early 2025.