Galan Lithium (GLN) Q4 2024 earnings summary

Executive summary

• HMW Phase 1 project construction reached 40% completion, with first production targeted for H2 2025.

• Lithium inventory in ponds exceeded 3,000t LCE, with brine flow and evaporation rates meeting feasibility expectations.

• Cash preservation measures implemented while advancing offtake and funding negotiations.

• Ross Dinsdale appointed as Chief Financial Officer post-quarter.

Financial highlights

• Cash and liquid assets at quarter end totaled A$6 million.

• Net cash used in operating activities was A$0.8 million for the quarter.

• Net cash used in investing activities was A$20.7 million, mainly for project development.

• Net cash from financing activities was A$16 million, including equity raises and ATM placements.

• Cash and cash equivalents at period end were A$4.3 million.

Outlook and guidance

• First HMW production expected in H2 2025, with project construction advancing at a cash-preserving pace.

• Expenditure rate to decrease in the September 2024 quarter due to cost-saving measures.

• Company confident in securing additional funding through equity, debt, and prepayment facilities.