Lindian Resources (LIN) Q4 2024 TU earnings summary

Executive summary

• Feasibility study for Kangankunde Rare Earths Project Stage 1 confirmed a technically low-risk, economically robust project with strong margins and low costs.

• Updated Mineral Resource Estimate: 61 Mt Indicated at 2.43% TREO; maiden Ore Reserve: 23.7 Mt at 2.9% TREO.

• All permits and licences for Stage 1 construction and operations are in place; water abstraction licence granted.

• Appointment of Alwyn Vorster as CEO and strengthening of executive team.

Financial highlights

• Pre-tax NPV (real) of US$794M, IRR of 99%, and average annual EBITDA of US$84M for Stage 1.

• Pre-production capital cost of US$40M, among the lowest for rare earth projects.

• Average annual FOB operating cost of US$2.92/kg TREO, in the lowest quartile globally.

• Pre-tax payback period of 1.25 years; NPV to Capex ratio over 19.

• Cash balance at quarter end: $13.1M.

Outlook and guidance

• Construction contract awards expected soon after funding is secured; aiming for site construction in Q4 2024 and plant commissioning in Q4 2025.

• Focus on advancing financing solutions and potential new offtake agreements.

• Project positioned to deliver positive EBITDA even at current spot prices.