Latin Resources (LRS) H1 2024 earnings summary

Executive summary

• Reported a net loss of $7.1 million for the six months ended 30 June 2024, an improvement from a $7.9 million loss in the prior year period.

• No dividends were paid or declared during the half year.

• Principal activities focused on mineral exploration and development, with a primary emphasis on the Salinas Lithium Project in Brazil.

• Entered into a binding agreement for Pilbara Minerals to acquire 100% of Latin Resources via a court-approved scheme, offering shareholders a 57% premium to the 10-day VWAP.

• Announced plans to demerge non-core assets in Australia, Argentina, and Peru in conjunction with the acquisition scheme.

Financial highlights

• Net loss after tax was $7,103,475 for H1 2024, compared to $7,919,365 in H1 2023.

• Revenue from interest and other income totaled $1,007,727, up from $657,547 year-over-year.

• Cash and cash equivalents at 30 June 2024 were $20.5 million, down from $51.8 million at 31 December 2023.

• Exploration and evaluation assets increased to $91.9 million from $66.5 million at year-end 2023.

• Basic and diluted loss per share was 0.25 cents, compared to 0.34 cents in the prior year period.

Outlook and guidance

• Pilbara Minerals acquisition expected to de-risk funding and development of Salinas, with completion targeted before end of 2024.

• $10 million loan facility from Pilbara Minerals secured for working capital, available if cash falls below $5 million or after 30 November 2024.

• Directors confident in ability to raise additional working capital if required, but note material uncertainty if all options fail.