Northern Minerals (NTU) H2 2024 earnings summary

Executive summary

• Advanced the Browns Range Heavy Rare Earths Project towards production, with a well-progressed Definitive Feasibility Study (DFS) and significant resource drilling at the Wolverine deposit confirming high-grade mineralisation open at depth.

• Strategic partnership with Iluka Resources includes a long-term offtake agreement and potential cornerstone funding, necessitating a redesign of the process flowsheet and DFS update.

• Leadership changes included the appointment of a new Executive Chair and CEO, strengthening the executive team for the next project phase.

• Maintained a strong safety record with a TRIFR of 0.00 since November 2022.

Financial highlights

• Reported a net loss from continuing operations of $31.6 million for FY2024, up from $22.3 million in FY2023.

• Cash balance at 30 June 2024 was $8.3 million, down from $11.7 million the previous year.

• Raised $25 million in September 2023 via a placement at $0.03 per share; post-period, secured commitments for a $43 million two-tranche placement at $0.019 per share.

• Basic EPS was a loss of 0.55 cents per share.

Outlook and guidance

• Final DFS and updated Ore Reserve Statement expected Q1 CY2025, with Final Investment Decision (FID) targeted for 1H CY2025.

• First production from Browns Range targeted for Q4 CY2027, subject to project funding.

• Ongoing discussions with Export Finance Australia and NAIF for debt funding; Iluka Resources advancing due diligence for potential equity funding.