Quantum Graphite (QGL) Q4 2024 TU earnings summary

Executive summary

• Submitted LOI funding application to US EXIM Bank for Uley 2 supply chain financing, including downstream purification in the US in partnership with Sunlands Energy Co.

• Advanced exploration with refined geological models and new EM anomalies identified at Uley 2/3, with drilling delayed for further data analysis.

• Sunlands Energy Co. received a US patent for its TES Graphite Cell technology; R&D partnership with ProTherm Systems renewed.

• US regulatory changes provide relief for EV manufacturers regarding graphite traceability, but supply remains constrained by Chinese export restrictions.

Financial highlights

• Uley 2 Phase 1 Mining Study projects total undiscounted cash flow of A$990.4 million, with capital expenditure of A$152.7 million.

• Average product cost is US$401.14/dmt, with an ex-works product price of US$1,225/dmt.

• Cash at bank was $1.44 million at 30 June 2024, increasing to $2.68 million by 30 July 2024.

• Net cash used in operating activities for the quarter was $(576)k; net cash from financing activities was $1.4 million.

• Loan facility of $5.2 million at 11.5% interest, fully drawn as of quarter end.

Outlook and guidance

• Planning for EXIM Bank due diligence is underway, with potential funding under the Make More In America and CTEP initiatives.

• Exploration focus remains on Uley 2/3 resource expansion, with short, medium, and long-term drilling priorities identified.

• Ongoing R&D to enhance TES Graphite Cell performance for grid stability and energy storage applications.