Hazer Group (HZR) Q2 2025 TU earnings summary

Executive summary

• Achieved a major milestone with the successful and early completion of the Commercial Demonstration Plant (CDP) test program, validating scalability, reliability, and economic viability of the technology.

• Transitioned from technology development to commercialization, with a robust pipeline of over 30 projects globally and strong market interest, especially in North America and Asia-Pacific.

• Secured and extended key partnerships, including Mitsui for graphite marketing and a binding agreement for the first large-scale commercial project in Canada, as well as collaboration with FortisBC.

• Strengthened intellectual property portfolio with two new patents in Japan and the EU, now totaling over 70 patents in 30+ jurisdictions.

• Financial position bolstered by $5.1M R&D tax incentive refund and $6.2M Western Australian Government grant.

Financial highlights

• Maintained a strong liquidity position with approximately AUD 15 million, including a new AUD 6.2 million government grant and a AUD 5.1 million cash refund.

• Net operating cash inflow of $1.1M for the quarter, with cash and cash equivalents at quarter end of $9.3M, up from $8.4M in the previous quarter.

• Revenue streams initiated from the Canadian project under a Technology Services Agreement, with license fees and royalties expected as projects reach FID and production.

• No new financing facilities or borrowings; funding position remains robust and non-dilutive grant funding supports work programs into 2026.

• $0.2M invested in next CDP reactor, expected to be eligible for R&D tax rebates.

Outlook and guidance

• Focused on accelerating scale-up and commercialization, targeting large-scale projects (50,000–100,000 tons per annum) to meet rising demand.

• Strategic priorities include finalizing definitive license terms, advancing the Canadian project, and unlocking value from graphite applications.

• Vision to deploy 10 plants in 10 years, potentially creating a billion-dollar platform with each project delivering AUD 80–100 million in license revenue.

• Next generation reactor installation and testing at CDP to commence in 2025, targeting over 20ktpa hydrogen production per train.

• Ongoing milestone payments from WA Government grant to support future development.