Quantum Graphite (QGL) Q4 2026 TU earnings summary

Executive summary

• Concluded a 20-year Ore Supply Agreement (OSA) with Sunlands Pure Group (SPG) for exclusive supply and downstream processing of Uley flake graphite, consolidating all refining within SPG.

• SPG's Al Buraimi refinery in Oman received final environmental authorisations, enabling development of a complete refining ecosystem.

• Commenced Front-End Engineering and Design (FEED) for Uley 2 mine and processing infrastructure, led by Lycopodium Minerals.

• Finalised project financing structure for Uley 2, integrating processing and refining activities.

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

• Cash at bank was $210,709.93 as of 30 June 2026 and $147,701.86 as of 30 July 2026.

• Net cash used in operating activities for the quarter was A$1.224 million; year-to-date net cash used was A$3.76 million.

• Proceeds from borrowings in the quarter totaled A$1.368 million.

Outlook and guidance

• OSA requires minimum monthly production to support 100ktpa refined output, scaling to 500ktpa within 7 years, subject to approvals and infrastructure completion.

• Estimated quarters of funding available is 2.32, with plans to reduce or defer outflows and potential for further equity raising.

• Operations expected to continue on a similar basis, with ongoing review of non-essential expenditures.