Peak Rare Earths (PEK) H1 2025 earnings summary

Executive summary

• Loss after tax for the half-year ended 31 December 2024 was $6.8m, a significant improvement from $11.7m loss in the prior year period.

• Key focus was on progressing investment, development, and funding for the Ngualla Rare Earth Project, including a major term sheet with Shenghe for a $96m investment.

• Early works, community projects, and regulatory approvals advanced, with a Resettlement Action Plan and land compensation schedule finalized.

• Completed ~$8.5m capital raising and continued sale process for non-core Teesside site.

• Material uncertainty remains regarding going concern, dependent on future funding and project finance.

Financial highlights

• Loss after tax: $6,785,773 (vs $11,650,630 for the same period last year).

• Employee benefits expenses: $1,657,782 (down from $2,104,152 year-over-year).

• Pre-development and technical feasibility costs: $2,860,740 (down from $5,667,093 year-over-year).

• Cash and cash equivalents at 31 Dec 2024: $4,775,607 (down from $7,625,845 at 30 June 2024).

• Net assets: $73,011,723 (up from $70,072,631 at 30 June 2024).

Outlook and guidance

• Completion of Shenghe transaction expected to fully fund Ngualla Project development, subject to final documentation and regulatory approvals.

• Sale of Teesside site anticipated to provide additional funding.

• Ongoing evaluation of project structure due to potential changes in Chinese rare earth regulations.

• Directors believe further funding can be raised as needed, but material uncertainty exists if not secured.