Medallion Metals (MM8) Q2 2025 TU earnings summary

Executive summary

• Advanced negotiations for the acquisition of the Cosmic Boy Process Plant at Forrestania, with due diligence showing no fatal flaws and binding documents expected before May 2025.

• Commenced a 15,000m drill program at Ravensthorpe Gold Project (RGP), with multiple high-grade intercepts exceeding model expectations and confirming deposit continuity.

• Scoping Study for RGP with processing at Forrestania indicates robust financial and production metrics, supporting near-term development.

• Key environmental and mining approvals for RGP-FNO development advanced, with primary approvals sought to minimize development timeframe.

Financial highlights

• Pre-tax free cash flow projected at $498 million (base case) and $637 million (spot) over a 5.5-year mine life, with an average annual pre-tax cash flow of $90 million.

• All-in sustaining cost (AISC) forecast at $1,845/oz Au (net by-products).

• Upfront capital requirement of $73 million for mine establishment and plant modifications.

• Cash at quarter end was $3.0 million, with $0.85 million available under a drill-for-equity agreement.

• Placement raised approximately $5 million before costs, with two tranches completed in August and October 2024.

Outlook and guidance

• Anticipates completion of binding agreements for the Forrestania acquisition by May 2025, with potential for a 3-month extension.

• Updated Mineral Resource Estimates (MREs) for Gem and Harbour View expected in H1 2025, forming the basis for a Bankable Feasibility Study and Final Investment Decision.

• Exploration and evaluation expenditure expected to decrease after the March 2025 quarter as the drill program concludes.

• Company expects to continue operations through reduced expenditure or proceeds from a planned capital raising.