Galan Lithium (GLN) Q1 2025 earnings summary

Executive summary

• Advanced construction at Hombre Muerto West (HMW) with 45% overall project completion and 76% of ponds constructed; first production targeted for H2 2025.

• Built lithium chloride inventory to over 6,000 tonnes LCE, with grades and evaporation rates in line with Phase 1 DFS.

• Became the first mining company to apply for Argentina's RIGI incentive regime, potentially enhancing investment returns.

• Completed a fully subscribed A$25m equity capital raising and secured a US$40m offtake prepayment MOU with Chemphys.

• Concluded public consultation for Phase 2 construction permits, advancing regulatory approvals.

Financial highlights

• Ended September 2024 quarter with A$2.4m cash; received A$14m from capital raising post-quarter.

• Net cash used in operating activities was A$0.68m; net cash used in investing activities was A$12.33m.

• Raised A$11.47m from equity issues during the quarter; total net cash from financing activities was A$11.04m.

• Payments to related parties totaled A$0.48m for the quarter.

Outlook and guidance

• First production from HMW expected in H2 2025, initially targeting 4,000 tpa LCE, with potential expansion to 5,400 tpa LCE as market conditions allow.

• Proceeds from recent capital raising and planned Chemphys prepayment expected to fund Galan into production.

• Confident in securing further funding through a mix of equity, debt, and prepayment facilities to meet 2024–2025 objectives.