Tolu Minerals (TOK) Q3 2024 TU earnings summary

Executive summary

• Completed $26.7 million equity placement to sophisticated and institutional investors at $0.80 per share, with settlement on 31 October 2024 and new shares quoted from 1 November 2024.

• Significant progress on Tolukuma Gold Mine (TGM) site refurbishment, access road construction, and recommencement preparations for mining operations.

• Advanced exploration activities, including completion of maiden diamond drill program at Taula and airborne Magneto Telluric (MT) surveys over key tenements.

• Recruitment of key management and operational staff, and conclusion of critical service contracts to support ramp-up.

Financial highlights

• Exploration and evaluation expenditure for the quarter totaled $7.4 million, including MT survey and roadway construction.

• No substantive mining production or development activities during the quarter.

• Net cash used in operating activities was $1.25 million for the quarter and $3.27 million for the nine months year-to-date.

• Net cash used in investing activities was $7.4 million for the quarter and $14.7 million year-to-date.

• Cash and cash equivalents at quarter end were $2.66 million, with a proforma cash balance of $29.4 million post-placement.

Outlook and guidance

• Placement proceeds expected to provide sufficient funding for ongoing exploration, site development, and recommencement of mining activities.

• Final assay results from Taula drilling and Phase 1/2 MT survey interpretations anticipated in November 2024.

• First road transport access to the mine site expected by year-end, supporting logistics and operational ramp-up.

• Company expects to continue meeting business objectives and operational milestones.