VHM (VHM) H2 2024 earnings summary

Executive summary

• Advanced the Goschen Rare Earths and Mineral Sands Project, completing the public review of the Environment Effects Statement and securing all required land for the mine footprint.

• Achieved a 30% reduction in capital cost for the Goschen Base Plant, positioning it as one of Australia's lowest capital intensity rare earth projects.

• Secured the first binding offtake agreement for Goschen products and extended exploration licences for five years.

• Strengthened leadership with board transitions and continued focus on transitioning from explorer to producer.

Financial highlights

• Loss after tax for FY2024 was $7.1 million, a significant improvement from the $17.9 million loss in FY2023, mainly due to lower non-capitalised corporate expenditure.

• Cash and cash equivalents at year-end were $6.2 million, down from $20.6 million in the prior year.

• Net assets stood at $58.4 million as of 30 June 2024.

• No dividends were paid or recommended.

Outlook and guidance

• Focus remains on progressing the Goschen Project towards production, with ongoing exploration and pre-development activities.

• Continued engagement with lenders and government agencies to secure project debt facilities and additional funding.

• Market outlook for rare earths and mineral sands is positive, with expected tightening of supply and demand recovery in key sectors.