GCM Resources (GCM) H2 2025 earnings summary

Executive summary

• FY2025 was marked by political upheaval in Bangladesh, with a new Interim Government prioritizing domestic coal development and energy security, directly benefiting the Phulbari Coal and Power Project.

• The Phulbari Project is positioned as Bangladesh's most advanced domestic coal initiative, capable of supplying up to 60% of the country's coal-fired power needs and integrating a major solar component.

• GCM maintained operational readiness, updated its economic model, and deepened partnerships, notably with PowerChina, despite delays in government approvals.

• The company raised £1 million in new equity and continued to rely on both equity and debt financing, with a significant loan facility from Polo Resources Ltd, whose status remains uncertain.

Financial highlights

• Net loss for the year ended 30 June 2025 was £2,149,000, up from £1,388,000 in 2024, mainly due to increased consultant fees and non-cash expenses.

• Cash at year-end was £1,310,000 (2024: £1,658,000), with net cash used in operations of £751,000 and investing activities of £521,000.

• Gross proceeds of £1,000,000 were raised via share placement in March 2025; administrative expenses rose 4.9% to £847,000.

• Capitalised expenditure on the mine proposal was £516,000 (2024: £443,000); finance costs increased to £541,000 due to higher Polo Loan Facility interest.

• Loss per share was (0.7p), compared to (0.6p) in the prior year.

Outlook and guidance

• The company expects to continue funding operations through a mix of equity and debt, with current cash resources sufficient until June/July 2026.

• Additional funding will be required by mid-2026 to maintain operations and advance the Phulbari Project.

• Approval for the Phulbari Project is anticipated following national elections in February 2026, after which significant additional capital will be needed for development.