Quantum Graphite (QGL) H2 2024 earnings summary

Executive summary

• Quantum Graphite Ltd focuses on exploration, mining, and processing of natural flake graphite, with future plans centered on developing Uley 2 and Uley 3 facilities and expanding into high-purity graphite products through a joint venture with Sunlands Energy Co.

• The company is positioning itself to exploit increased demand for graphite, especially amid global supply chain shifts and regulatory changes affecting the lithium-ion battery market.

• The board's priority is securing funding to become a major producer and refiner of high-purity graphite, maintaining control over sales and marketing.

Financial highlights

• Net loss for the year was $4,368,833, an improvement from the prior year's $5,159,466 loss, mainly due to deferred exploration and R&D expenditures.

• Total revenue for FY2024 was $438,878, down from $492,736 in FY2023.

• EBITDA was $(4,063,822), compared to $(5,086,914) in FY2023.

• Cash and cash equivalents at year-end were $1,435,917, up from $974,450 the previous year.

• No dividends were paid or declared during the reporting period.

Outlook and guidance

• The company’s updated Definitive Feasibility Study (DFS) for Uley 2 demonstrates improved project economics, with increased mill throughput and lower processing costs.

• Ongoing exploration and R&D programs are fully funded, and the company is prepared to exploit uncertainties in the graphite supply chain.

• The board is focused on establishing funding to enter the graphite market as a major producer and refiner.