Latin Resources (LRS) Q3 2024 TU earnings summary

Executive summary

• Pilbara Minerals to acquire 100% of Latin Resources via an all-share transaction, offering a 57% premium to the 10-day VWAP and 32% to the 30-day VWAP prior to announcement.

• Salinas Lithium Project's global MRE upgraded to 77.7Mt @ 1.24% Li₂O, positioning it among the largest undeveloped lithium deposits globally.

• Integration committee formed to optimize the DFS, with joint project development and mining expertise from both companies.

• Latin Resources shareholders to receive 0.07 Pilbara Minerals shares per LRS share and will own ~6.4% of Pilbara Minerals post-transaction.

• Scheme meetings expected in January 2025, with implementation targeted for January/February 2025.

Financial highlights

• $7 million cash at bank and $1.2 million in investments as of 30 September 2024.

• Net cash outflow from operating activities was $1.09 million for the quarter.

• Exploration and evaluation expenditure totaled $13.5 million for the quarter.

• Cash and cash equivalents at quarter end were $6.8 million, down from $20.5 million in the previous quarter.

• Pilbara Minerals provided a $10 million loan facility, undrawn as of quarter end.

Outlook and guidance

• Expenditure significantly reduced following completion of updated MRE and key DFS inputs.

• Company intends to utilize the Pilbara Minerals loan facility to support ongoing activities.

• Focus remains on progressing the Salinas Project and optimizing the DFS ahead of scheme implementation.