NGEx Minerals (NGEX) Q3 2024 earnings summary

Executive summary

• Initiated a 20,000m Phase 3 drill program at Lunahuasi, aiming to expand the high-grade copper, gold, and silver deposit and develop an initial Exploration Target under NI 43-101.

• Closed a non-brokered private placement of 16.1 million shares at CAD $11/share, raising CAD $176.9 million, significantly strengthening the treasury and supporting ongoing exploration.

• Phase 2 drilling confirmed high-grade mineralization over a large volume, with the deposit remaining open in all directions and several boundary holes showing strong results.

Financial highlights

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

• 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 increased significantly after the October 2024 financing.

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

• Net loss partially offset by a $2.1 million gain from marketable securities used for intragroup funding transfers.

Outlook and guidance

• Phase 3 drilling at Lunahuasi is expected to yield initial results by the end of Q4 2024, with the potential to expand the deposit and define an Exploration Target.

• The strengthened financial position allows for flexibility to expand exploration in response to positive results.