Peak Rare Earths (PEK) H2 2024 earnings summary

Executive summary

• Loss after tax reduced to $18.2m for FY2024, down from $32.8m in FY2023, as pre-development and feasibility activities advanced for the Ngualla Rare Earth Project in Tanzania.

• Net assets decreased to $70.1m from $88.9m, with working capital at $9.2m and cash of $7.6m at year-end.

• Major milestones included a non-binding $96m funding and development term sheet with Shenghe, a binding offtake agreement, and a non-binding debt term sheet for US$176.6m.

• Technical studies, early works, and a critical minerals exploration program confirmed high-grade mineralisation of phosphate, fluorspar, niobium, and rare earths.

• No dividends declared or paid.

Financial highlights

• Revenue was $957k (2023: $698k), mainly from interest and R&D rebates.

• Loss after tax: $18.2m (2023: $32.8m); basic and diluted loss per share: 6.85 cents (2023: 15.38 cents).

• Employee benefits expense: $4.0m (2023: $3.2m); technical feasibility costs: $8.7m (2023: $3.3m); exploration and evaluation costs: $1.3m (2023: nil).

• Net cash outflow from operations: $17.4m; cash at year-end: $7.6m (2023: $25.9m).

• No capital commitments or contingencies at year-end.

Outlook and guidance

• Shenghe term sheet positions Ngualla as the only rare earth project globally with a complete offtake, development, and funding solution; Peak will not need to contribute further equity for project development upon completion.

• Focus on finalising binding agreements with Shenghe and progressing project optimisation, cost reduction, and early works.

• Sale of Teesside site expected to provide additional working capital.