Red Metal (RDM) H2 2024 earnings summary

Executive summary

• Achieved significant progress in exploration, notably at the Sybella rare earth project near Mt Isa, with successful drilling and metallurgical tests indicating potential for low-cost heap leach processing and high-quality rare earth carbonate production.

• Maronan Metals Limited (44% owned) advanced the Maronan silver-lead-copper-gold project, defining an Indicated Resource in the shallow Starter Zone and commencing a major drilling campaign to further delineate resources.

• Secured $360,000 in government grants and R&D rebates, and continued to benefit from BHP-funded joint ventures, supporting ongoing exploration and project development.

• Raised $4.48 million in December 2023 through a share placement, with additional capital raised via exercised options.

Financial highlights

• Loss after tax for FY2024 was $7.88 million, an improvement from the $10.82 million loss in FY2023.

• Revenue from ordinary activities increased to $1.83 million from $0.79 million year-over-year, driven by grants, project management fees, and R&D refunds.

• Cash and cash equivalents at year-end were $12.2 million, up from $6.6 million in the prior year.

• No dividends declared or paid for the year.

Outlook and guidance

• FY25 priorities include further metallurgical drilling, optimisation studies, and early-stage mining studies at Sybella, as well as continued advancement of Maronan and other copper, gold, and lithium projects.

• Intends to raise up to $2 million via a share purchase plan in October 2024 to support ongoing exploration.