GBM Resources (GBM) Q4 2024 TU earnings summary

Executive summary

• Entered a binding $12 million sale and farm-in agreement with Wise Walkers for Twin Hills, with $6 million cash consideration and $6 million exploration funding over 18 months for a 70% JV interest; GBM retains 30% free carried to decision to mine.

• Conditional term sheet signed for sale of White Dam gold-copper project to Olary Gold Mines for $2.95 million cash and a 1.5% net smelter royalty (capped at $2.5 million).

• Ongoing asset divestment strategy has generated approximately $12.4 million to date, supporting working capital and convertible note redemption.

• No lost time injuries or significant environmental incidents reported for 148 and 193 consecutive months, respectively.

Financial highlights

• Cash and cash equivalents at quarter end: $1.63 million.

• Net cash used in operating activities for the quarter: $(306)k; net cash from investing activities: $643k; net cash from financing activities: $146k.

• Estimated quarters of funding available: 1.5, with expectation of lower net operating cash flows due to asset sales.

• Convertible note balance at quarter end: $6.46 million.

Outlook and guidance

• Expectation of lower net operating cash flows in future quarters due to asset sales and farm-in agreements.

• Anticipated receipt of $6 million cash from Wise Walkers and $2.95 million from White Dam sale to support operations and debt repayment.

• Focus on finalizing the Wise Walkers farm-in and advancing Yandan Project in the next 12 months.