Red Hawk Mining (RHK) Q1 2025 TU earnings summary

Executive summary

• Total Blacksmith DSO Mineral Resource Estimate increased to 243Mt at 59.3% Fe, following the addition of the Eagle deposit, making it the largest undeveloped hematite/goethite resource in the Pilbara owned by an ASX-listed junior iron ore company.

• Haulage route optimisation and logistics trials with MGM Bulk indicate potential capital and operating cost reductions by removing the Whim Creek staging facility.

• Notification received for forecasted annual port capacity of 1Mtpa at Utah Point, Port Hedland, aligning with project ramp-up plans.

• Canegrass Project interest sold to Viking Minerals for $450k cash and 33.3 million Viking shares.

Financial highlights

• Cash and cash equivalents at 30 September 2024 were $3.6 million, down from $6.8 million at the start of the quarter.

• Net cash used in operating activities for the quarter was $1.25 million.

• Net cash used in investing activities was $2.0 million, including $2.4 million in capitalised exploration and evaluation, offset by $450k from the Canegrass sale.

• Payments to related parties totaled $437k for the quarter.

Outlook and guidance

• Definitive Feasibility Study (DFS) for Blacksmith Project to commence in the current quarter, with focus on reducing capital/operating costs and increasing export volumes.

• Planned workstreams include resource extension drilling, geotechnical drilling, mining proposal submission, camp design finalisation, and haulage/logistics optimisation.

• Company expects to raise additional funds as required to progress exploration and development, with ability to reduce activities if needed.