Peak Rare Earths (PEK) H2 2024 earnings summary

Executive summary

• Advanced pre-development and commercialisation of the Ngualla Rare Earth Project in Tanzania, including technical studies, funding, and offtake agreements.

• Signed a non-binding term sheet with Shenghe for a $96m investment and a fully funded project solution, including a 50% stake in the project subsidiary.

• Completed a binding offtake agreement for 100% of rare earth concentrate and at least 50% of intermediate/final products for an initial 7-year term.

• Initiated a sale process for the Teesside site to provide additional capital.

Financial highlights

• Net loss after tax of $18.2m for FY2024, down from $32.8m in FY2023.

• Revenue of $957k, up from $698k in the prior year.

• Net assets decreased to $70.1m from $88.9m at June 2023.

• Cash at bank at year-end was $7.6m, down from $25.9m.

• Working capital of $9.2m at 30 June 2024, compared to $23.8m a year earlier.

• Basic and diluted loss per share was 6.85 cents (FY2023: 15.38 cents).

Outlook and guidance

• Shenghe partnership expected to deliver a fully funded solution for Ngualla Project development.

• Sale of Teesside site anticipated to provide further working capital.

• Ongoing optimisation and cost reduction studies to further improve project economics.

• Resettlement and land valuation activities targeted for completion by October 2024.