Red Hawk Mining (RHK) H2 2024 earnings summary

Executive summary

• Strategic shift to focus on high-grade, direct shipping ore (DSO) at Blacksmith Project, aiming for rapid market entry and lower capital intensity.

• Pre-Feasibility Study (PFS) supports a 5Mtpa operation with a 23-year mine life and robust economics.

• Mineral Resource Estimate (MRE) for Blacksmith increased to 243.4Mt at 59.3% Fe, with 27% Measured and 69% Indicated.

• Net loss of $9.698 million for FY24, compared to a profit of $13.185 million in FY23.

• Ongoing engagement with Native Title holders and strong ESG focus embedded in project design.

Financial highlights

• Revenue from finance and other income totaled $214,000, down from $261,000 in FY23.

• Administrative and other expenses rose to $9.848 million (FY23: $4.238 million).

• Cash and cash equivalents at 30 June 2024 were $6.8 million.

• Net assets increased to $91.0 million (FY23: $83.9 million) after a $16.8 million equity raise.

• No dividends declared or paid for FY24.

Outlook and guidance

• Definitive Feasibility Study for Blacksmith Project due in FY25, targeting near-term mining operation.

• First ore export allocation of 1Mtpa at Utah Point expected in 2026, ramping to 5Mtpa over five years.

• Continued focus on ESG integration, stakeholder engagement, and regulatory approvals.