NGEx Minerals (NGEX) Q3 2024 earnings summary

Executive summary

• Initiated a 20,000m Phase 3 drill program at the high-grade Lunahuasi project, with all six rigs operational as of October 2024, aiming to expand the deposit and develop an initial Exploration Target under NI 43-101.

• Closed a heavily oversubscribed private placement of 16.1 million shares at CAD $11 per share, raising gross proceeds of CAD $176.9 million, significantly strengthening liquidity and supporting ongoing exploration.

• Phase 2 drilling confirmed high-grade copper, gold, and silver mineralization over a large volume, with the deposit remaining open in all directions.

Financial highlights

• Net loss of $9.8 million for Q3 2024, compared to $4.2 million in Q3 2023, primarily due to increased exploration and G&A expenses.

• Exploration and project investigation costs were $6.2 million in Q3 2024, up from $4.5 million in Q3 2023.

• Cash position at September 30, 2024, was $44.1 million, down from $59.5 million at December 31, 2023, but significantly increased post-quarter with the private placement.

• Working capital at September 30, 2024, was $41.6 million, compared to $69.7 million at year-end 2023.

Outlook and guidance

• Initial results from Phase 3 drilling at Lunahuasi expected toward the end of Q4 2024, subject to drilling and assay turnaround times.

• Enhanced financial position allows for potential expansion of the Lunahuasi drill program in response to encouraging early results.