GBM Resources (GBM) Q1 2025 TU earnings summary

Executive summary

• Executed a A$12 million farm-in agreement at Twin Hills, allowing Wise Walkers to earn up to 70% by funding A$6 million in exploration and paying A$6 million in cash; GBM retains a 30% free-carried interest to a decision to mine.

• Newmont completed maiden drilling at Mt Coolon under a A$25 million farm-in, with results pending; total farm-in expenditure to date is ~A$9.6 million.

• Conditional sale of White Dam gold-copper project to Olary Gold Mines for A$2.95 million cash and a 1.5% net smelter royalty, with funding condition yet to be completed.

• Entered option agreement for Sevastopol Graphite Prospect sale for up to A$1.2 million and a 1% royalty.

Financial highlights

• Cash and cash equivalents at quarter end were A$1.02 million, down from A$1.63 million in the previous quarter.

• Net cash used in operating activities was A$704k; net cash used in investing activities was A$50k; net cash from financing activities was A$149k.

• Estimated quarters of funding available: 0.73, with expectation of lower net operating cash flows in the near term.

• Receipts from customers totaled A$229k; gold bullion on hand at quarter end valued at ~A$160k.

Outlook and guidance

• Expectation of lower net operating cash flows due to farm-in agreements and asset sales; anticipated cash injections from Twin Hills and White Dam transactions.

• Confident in ability to raise sufficient capital from asset sales and investments to meet business objectives.

• Drilling at Twin Hills planned for early 2025 under Wise Walkers' farm-in budget.