Australian Strategic Materials (ASM) H1 2026 earnings summary

Executive summary

• Achieved a 22% increase in gross profit and a 21% reduction in net loss after tax for the half-year ended 31 December 2025, driven by higher metal and alloy sales and lower inventory write-downs.

• Advanced the Dubbo Project with a Heap Leach Scoping Study, targeting lower capital and faster rare earth production, supported by a matched A$5 million government grant.

• Korean Metals Plant ramped up NdFeB alloy production and achieved first commercial sales of heavy rare earth metals, with Phase 2 expansion fully funded and underway.

• Entered into a binding agreement post-period for acquisition by Energy Fuels Inc., offering a significant premium to shareholders.

Financial highlights

• Sales revenue rose to $5.97 million, up 426% year-over-year; gross profit increased to $720,000, up 22%.

• Net loss after tax reduced to $10.95 million from $13.94 million year-over-year.

• Net assets increased by 33% to $241.1 million, supported by $75.6 million in new capital raised.

• Operating cash outflows reduced by 15%; closing cash balance rose to $69.7 million.

Outlook and guidance

• Focus remains on progressing the Dubbo Project, expanding Korean Metals Plant, and evaluating US plant location.

• If the Energy Fuels acquisition is approved, operations will integrate into a larger Western rare earths group.