Red Hawk Mining (RHK) Q2 2025 TU earnings summary

Executive summary

• Advanced Blacksmith Project with ongoing PFS/DFS work, focusing on optimising scale, logistics, and stakeholder engagement.

• Submitted Mining Proposal for first five years of Blacksmith operations, including infrastructure and mine closure planning.

• Sinter testwork confirmed Blacksmith DSO as a favourable sinter feed for Chinese steelmakers, supporting marketability.

• Continued efforts to secure port capacity and optimise haulage routes to enhance project economics.

• Disposed of non-core investment and royalty interest, strengthening liquidity post-quarter.

Financial highlights

• Held $1.3 million in cash at 31 December 2024, down from $3.6 million at previous quarter end.

• Net cash outflow from operating activities was $1.27 million for the quarter.

• Net cash outflow from investing activities was $1.03 million, mainly for exploration and evaluation.

• Received $150k from sale of non-core investment during the quarter; $3 million from royalty sale received post-quarter.

• Payments to related parties totaled $267k for the quarter.

Outlook and guidance

• Streamlined DFS underway with focus on reducing haulage distances and increasing throughput.

• Negotiating a short-term working capital loan with major shareholder TIO (NZ) Ltd, with terms to be announced in the current quarter.

• Considering further funding options, including equity or debt, to support ongoing operations.

• Ability to adjust timing and scope of operations if additional funding is not secured.