Pensana (PRE) H2 2024 earnings summary

Executive summary

• Finalised a revised execution plan for the Longonjo Project, reducing upfront capital expenditure to $217 million, with $105 million deferred to year three post-commissioning.

• Secured a non-binding term sheet for a $160 million project finance debt facility and deployed a $15 million bridging loan from FSDEA to maintain project momentum.

• Achieved zero recordable injuries and received an EcoVadis gold medal for ESG performance, placing in the top 5% of companies assessed.

• Signed further offtake and cooperation agreements, including with Hanwa Co. Ltd., and secured a $3.4 million technical assistance grant from the US DFC.

• Early construction works commenced at Longonjo, including camp construction, road rehabilitation, and agricultural demonstration plots.

Financial highlights

• Total comprehensive loss for FY2024 was $6.8 million, up from $5.2 million in FY2023 (+31%).

• Net loss after tax for FY2024 was $5.8 million, compared to $4.3 million in FY2023 (+35%).

• Property, plant, and equipment and intangible assets increased to $71.0 million (FY2023: $61.8 million).

• Cash and cash equivalents decreased to $1.5 million from $9.7 million in FY2023.

• Net assets at 30 June 2024 were $51.0 million, down from $56.8 million in FY2023.

• No dividends paid or proposed for the year.

Outlook and guidance

• Targeting first production at Longonjo in 2026, with main financing expected to close in Q4 2024.

• Focus remains on securing funding for Longonjo, advancing Coola exploration, and progressing Saltend downstream processing once Longonjo is in construction.

• Ongoing engagement with strategic partners and government agencies to support project development and future expansion.