Peak Rare Earths (PEK) Q4 2024 TU earnings summary

Executive summary

• Achieved major milestones for Ngualla Rare Earth Project, including a non-binding funding and development term sheet with Shenghe and satisfaction of all conditions for a binding offtake agreement.

• Initiated a cost and optimisation study, advanced resettlement and land valuation, and progressed early works and CSR initiatives.

• Commenced sale process for Teesside site to provide additional capital.

Financial highlights

• Cash at hand as of 30 June 2024 was $7.6 million.

• Market cap stood at $49.2 million at $0.185/share.

• Quarterly operating expenditure included $0.162 million to related parties and $1.269 million for exploration, evaluation, and development.

• Net cash used in operating activities for the quarter was $2.65 million.

• Estimated 2.88 quarters of funding available at current cash burn rate.

Outlook and guidance

• Shenghe to invest ~A$96m for a 50% interest in NGUK, with remaining project costs funded by Shenghe-arranged debt facility.

• Transaction documentation to be finalized by September 2024, with shareholder approval in October and FID by 31 December 2024.

• Cost and optimisation study to deliver bankable cost and production estimates ahead of FID.

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