Red Hawk Mining (RHK) H2 2024 earnings summary

Executive summary

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

• Pre-Feasibility Study (PFS) completed, confirming robust project economics and a 23-year mine life with production ramping from 1.2Mtpa to 5Mtpa.

• Total Blacksmith Mineral Resource Estimate (MRE) increased to 243Mt at 59.3% Fe, with 27% Measured and 69% Indicated.

• Maiden Probable Ore Reserve of 46Mt at 60.5% Fe, all within the Delta deposit.

• Net loss of $9.7 million for FY24, compared to a $13.2 million profit in FY23, reflecting increased exploration and development expenditure.

Financial highlights

• Revenue: Minimal, as the company remains in pre-production.

• Net loss: $9.7 million (FY24), down from a $13.2 million profit (FY23, which included a one-off tax benefit).

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

• Exploration and evaluation assets: $86.7 million, representing 92% of total assets.

• Equity raised: $16.8 million via share issue during the year.

Outlook and guidance

• Definitive Feasibility Study for Blacksmith Project targeted for completion in FY25.

• First ore export capacity of 1Mtpa at Utah Point Bulk Handling Facility expected to become available in 2026, ramping to 5Mtpa.

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