Red Hawk Mining (RHK) Q4 2024 TU earnings summary

Executive summary

• Released Pre-Feasibility Study (PFS) for Blacksmith Project, confirming robust project economics and a clear path to production.

• PFS includes four deposits, increases annual production to 5Mtpa, and maintains a mine life of over 20 years.

• Maiden Ore Reserve at Delta deposit of 45.98Mt at 60.54% Fe underpins the first 13 years of production.

• Updated Delta Mineral Resource Estimate (MRE) with 77% in the Measured category, enhancing predictability.

• Entitlement Offer raised $11.12 million to advance the Blacksmith Project.

Financial highlights

• Cash balance at 30 June 2024 was $6.8 million.

• Net cash used in operating activities for the quarter was $1.64 million; for the year, $7.51 million.

• Net cash used in investing activities for the quarter was $1.72 million; for the year, $7.96 million.

• Net cash from financing activities for the quarter was $0.91 million, mainly from equity issuance.

• Estimated 2.1 quarters of funding available at current expenditure rates.

Outlook and guidance

• First ore to market from Blacksmith Project expected in late 2025, subject to approvals and financing.

• Definitive Feasibility Study to commence in the current quarter; maiden DSO resource for Eagle deposit expected by end of July 2024.

• Ongoing optimisation of haulage logistics and submission of Mining Proposal for first five years of mining planned.