Iron Road (IRD) H1 2025 earnings summary

Executive summary

• Achieved a net profit of $6.32 million for the half-year ended 31 December 2024, reversing a prior year loss, driven by $7.6 million in non-dilutive option fees and milestone payments from Amp Energy and Northern Water for the Cape Hardy Industrial Port Precinct.

• Cash reserves increased to $5.46 million with no debt at period end, following significant inflows and repayment of an interest-free loan to the major shareholder.

• Advanced the Central Eyre Iron Project (CEIP) with a focus on high-grade direct-reduced (DR) iron concentrate and progressed a 12Mtpa slurry pipeline scoping study.

• Cape Hardy site developments included $3.0 million milestone payment from Amp, ongoing environmental and engineering studies, and regulatory progress for land subdivision and wind monitoring infrastructure.

Financial highlights

• Revenue for the half-year was $7.6 million, primarily from option and milestone payments; interest income was negligible.

• Operating expenses totaled $1.28 million, up $0.43 million year-over-year, mainly due to share-based payments.

• Net profit after tax was $6.32 million, compared to a loss of $0.85 million in the prior period.

• Basic EPS was 0.76 cents, diluted EPS 0.72 cents, versus (0.10) cents in the prior year.

• Net cash inflow from operating activities was $6.06 million, compared to an outflow of $1.59 million in the prior year.

Outlook and guidance

• Full details of the CEIP slurry pipeline study, including capital and operating costs, are expected in February 2025.

• The company intends to appoint a preferred corporate and financial adviser in the first half of 2025 to support strategic opportunities.

• Announced an on-market share buy-back program of up to 5% of issued capital, to be executed at no more than 5% above the 5-day VWAP.