Quantum Graphite (QGL) H2 2024 earnings summary

Executive summary

• Principal activities include exploration, mining, and processing of natural flake graphite, with a focus on the Uley 1 mine and future development of Uley 2 and Uley 3 facilities.

• The company is advancing plans for high-purity graphite production and supply chain integration, including a joint venture with Sunlands Power for thermal storage media.

• Market volatility due to Chinese export restrictions and global supply chain shifts has influenced strategic priorities, with renewed reliance on Chinese supply for anode materials.

Financial highlights

• Net loss for the year was $4,368,833, an improvement from the prior year's loss of $5,159,466.

• Total revenue for FY2024 was $438,878, down from $488,217 in FY2023.

• EBITDA for FY2024 was $(4,063,822), compared to $(5,086,914) in FY2023.

• Basic and diluted loss per share was (1.29) cents, compared to (1.57) cents in the prior year.

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

Outlook and guidance

• The board's priority is to secure funding to become a major producer and refiner of high-purity graphite.

• A Letter of Interest and non-binding term sheet from US EXIM Bank for up to US$300 million in financing was received post-period, supporting the Uley 2 project and related supply chain activities.

• Ongoing exploration and development programs are fully funded, with flexibility to adjust timing and scope as needed.