Latin Resources (LRS) Q2 2024 TU earnings summary

Executive summary

• Transitioned from explorer to developer in Q2 2024, with drilling completed and a major resource upgrade at Salinas Lithium Project; DFS completion due Q3 2024 and FID targeted for Q4 2024, construction expected to start Q1 2025.

• Colina Lithium Deposit MRE upgraded to 70.9Mt at 1.25% Li₂O; global Salinas MRE now 77.7Mt at 1.24% Li₂O, among the largest undeveloped lithium resources.

• Cash burn reduced significantly, with A$21M cash at 30 June 2024 and full funding to FID in Q4 2024.

• Advanced offtake and funding discussions underway, targeting low-cost capital structure for project development.

• Non-core asset divestment and ESG initiatives progressing, including a planned spin-out of ESG Minerals Ltd.

Financial highlights

• Cash at bank of A$21M (US$14M) and $1.3M in investments as of 30 June 2024.

• Net cash outflow for the quarter was $18.2M, mainly due to exploration and evaluation expenditure.

• Exploration and evaluation expenditure for the quarter totaled $13.4M.

• Cash burn significantly reduced after completion of Mineral Resource Estimate (MRE).

• Estimated 1.1 quarters of funding available at current burn rate, but cash burn expected to decrease post-exploration.

Outlook and guidance

• Fully funded to FID in Q4 2024, with construction targeted to commence in Q1 2025 pending approvals; surplus cash forecast at 31 December 2024.

• DFS to confirm Salinas as a large, low-capex, low-opex project; permits expected to allow construction in Q1 2025.

• DFS release expected Q3 2024, with first production targeted for 2026.

• Funding strategy and offtake decision to be released ahead of FID.

• Planalto maiden MRE expected Q3 2024, targeting a global resource >100Mt.