Winsome Resources (WR1) H2 2024 earnings summary

Executive summary

• Achieved a 33% increase in Adina Lithium Project's Mineral Resource Estimate (MRE) to 77.9Mt at 1.15% Li₂O, making it one of North America's top five lithium resources.

• Secured an exclusive option to acquire the Renard Operations, a former diamond mine with significant infrastructure, potentially reducing Adina's upfront capital expenditure and project risk.

• Completed over 80,000m of drilling at Adina in FY2024, expanding both Main and Footwall Zones and discovering new high-grade lithium mineralisation.

• Maintained a strong balance sheet through successful capital raising, government funding, and Canadian flow-through provisions.

Financial highlights

• Total income for FY2024 was $26.0M, up from $5.2M in FY2023, primarily from the sale of tax claims and profit on sale of tenements.

• Comprehensive loss for the year was $13.46M (2023: $11.90M), with a basic and diluted loss per share of 2.64 cents (2023: 9.80 cents).

• Cash and cash equivalents at year-end were $45.4M, up from $42.3M in the prior year.

• Net assets increased to $100.8M from $69.0M year-over-year.

• No dividends declared or paid for FY2024.

Outlook and guidance

• Anticipates further growth in Adina's MRE, with additional pegmatite occurrences yet to be included.

• Scoping studies for both greenfield and brownfield development scenarios at Adina are expected to be completed in Q3 2024.

• The Renard Option has been extended to 31 December 2024, with a further extension possible to February 2025.

• Global lithium demand is projected to grow at a CAGR of 13%, with North American EV growth up 32% this year.