Peak Rare Earths (PEK) Q1 2025 TU earnings summary

Executive summary

• Advanced Ngualla Rare Earth Project with Shenghe on a proposed $96m investment and funding solution, targeting a fully funded project and de-risking milestone.

• Reconfigured project layout to optimize the expanded Special Mining Licence area, reducing costs and improving operational efficiency.

• Progressed land resettlement, early works, and appointed a new Project Director with significant African mining experience.

• Initiated sale process for non-core Teesside site to support working capital.

• Benefited from improving rare earth prices and continued phosphate collaboration with Minjingu.

Financial highlights

• Cash at hand as of 30 September 2024 was $3.6 million, with a market cap of $50.6 million at $0.19/share.

• Quarterly operating expenditure included $0.158 million to related parties and $2.109 million on exploration, evaluation, and development.

• Net cash used in operating activities for the quarter was $4.0 million; net cash used in investing activities was $21,000.

• Estimated quarters of funding available at current burn rate is 0.9; company intends to raise capital and sell Teesside site.

Outlook and guidance

• Targeting completion of Shenghe transaction and Final Investment Decision by end of March Quarter 2025.

• Plans to finalize land resettlement and compensation schedules by end of December 2024.

• Intends to pursue capital raising and Teesside site sale in December Quarter to fund operations.