GCM Resources (GCM) H2 2024 earnings summary

Executive summary

• The year ended 30 June 2024 was marked by significant political upheaval in Bangladesh, including the collapse of the Awami League government and the appointment of an Interim Government, impacting project momentum and business development.

• The company continued to focus on advancing the Phulbari Coal and Power Project, signing a major mine construction contract with PowerChina and updating its economic model to emphasize local currency coal sales.

• Engagement with the new government and stakeholders is ongoing, with the aim to align the project with national interests and secure necessary approvals.

Financial highlights

• Loss after tax for the year was £1,388,000, up from £1,320,000 in the prior year, mainly due to increased board costs and exchange rate losses.

• Cash at year-end was £1,658,000 (2023: £543,000), with net cash used in operations of £763,000 and investing activities of £444,000.

• Gross proceeds of £2.5m were raised through share subscriptions during the year.

• Capitalised expenditure on the mine proposal was £443,000 (2023: £625,000).

• No revenue was generated; operations are funded by equity and debt.

Outlook and guidance

• The company is committed to progressing the Phulbari project and is actively engaging with the Interim Government to secure project approval.

• Additional funding will be required by July 2025 to maintain operations; management is confident but acknowledges material uncertainties regarding going concern.

• Upon project approval, significant further capital will be needed for development.