Rex Minerals (RXM) H2 2024 earnings summary

Executive summary

• Entered Scheme Implementation Deed with MACH Metals for all-cash acquisition at $0.47/share, implying $393M market cap and a 98% premium to 90-day VWAP; Board recommends shareholders accept the offer.

• Raised $22.6M via strategic placement and entitlement offer to fund working capital and Hillside Project pre-construction.

• Focused on advancing the Hillside Copper-Gold Project (South Australia) and Hog Ranch Gold Property (Nevada, USA), both with significant resource potential.

• No dividends declared; loss after tax reduced to $15.5M (2023: $24.8M).

Financial highlights

• Net loss after tax: $15.5M, improved from $24.8M in FY2023.

• Cash position at 30 June 2024: $21.3M (2023: $6.6M); net cash outflow from operations: $16.8M (2023: $25.4M).

• Equity increased to $55.3M (2023: $40.9M) following capital raising.

• No borrowings; first ranking charge over freehold land for rehabilitation obligations.

• Basic and diluted loss per share: 2.26 cents (2023: 4.19 cents).

Outlook and guidance

• Scheme Booklet to be distributed in September 2024; shareholder vote and potential implementation in October 2024.

• Ongoing development of Hillside Project and continued exploration at Hog Ranch.

• Board expects successful transition to MACH Metals ownership, providing financial strength for project execution.