Tolu Minerals (TOK) Q2 2025 TU earnings summary

Executive summary

• Significant progress at Tolukuma Gold Mine with infrastructure upgrades, exploration, and cost reduction initiatives underway to support the Destination 2026 plan.

• Modular gravity plant commissioned in April 2025, supporting operational ramp-up and initial gold production.

• Major exploration program launched, including 30,000m of diamond drilling and regional geochemical surveys.

• Access road construction nearing completion, reducing logistics costs and improving site accessibility.

• No medical treatment or lost time injuries recorded during the quarter; strong focus on safety and community engagement.

Financial highlights

• Exploration and evaluation expenditure for the quarter was $6.8 million, including roadway construction.

• Net cash used in operating activities for the quarter was $3.05 million; investing activities used $7.19 million.

• $27.25 million raised from equity issuance during the quarter, with $26.12 million net cash from financing activities.

• Cash and cash equivalents at quarter end totaled $21.56 million, up from $5.73 million in the previous quarter.

• Payments to related parties during the quarter totaled $203,000.

Outlook and guidance

• Processing capacity to increase from 6t/hr to 20t/hr, targeting a run rate of 145,000 tpa, with further expansion planned for 2027.

• Hydropower station refurbishment to deliver 3MW by H2 2026, reducing power costs by ~75%.

• Exploration to focus on expanding the Mineral Resource Estimate and advancing Mt. Penck and Ipi River projects.

• Drilling capacity to expand to seven rigs by end-2025, aiming for a significant MRE upgrade by Q2 2026.