Australian Strategic Materials (ASM) Q1 2026 TU earnings summary

Executive summary

• Increased production and sales of rare earth metals and alloys at the Korean Metals Plant, with 16.7 tonnes of NdFeB alloy produced and 13.9 tonnes dispatched, and 22.2 tonnes of NdPr metal dispatched during the quarter.

• Achieved first commercial sale of heavy rare earth metals (terbium and dysprosium) to Neo Performance Materials, marking a milestone in heavy rare earth strategy.

• Completed a transformative Heap Leach Scoping Study for the Dubbo Project, accelerating the pathway to rare earth production and cash flow.

• Raised A$24.9 million through a share purchase plan and placement, and post-quarter, secured an additional A$55 million to fund alloy production expansion and metallisation growth.

• Advanced plans for an American Metals Plant, with site selection and federal engagement ongoing in the US.

Financial highlights

• Cash position at 30 September 2025 was $37.5 million, up from $19.0 million at the start of the quarter, mainly due to capital raising.

• Net cash used in operating activities was $4.2 million for the quarter.

• Net cash from financing activities was $23.0 million, reflecting strong investor support.

• Two new Korean loan facilities totaling A$12.9 million were executed as part of refinancing.

Outlook and guidance

• Pre-Feasibility Study for the Dubbo Project heap leach process is on track for H1 2026, with a streamlined transition to engineering if viable.

• Phase 2 expansion of the Korean Metals Plant, fully funded, will increase NdFeB alloy capacity to 3,600 tpa, with planning for Phase 3 to reach 5,600 tpa.

• Continued ramp-up of heavy rare earth production and further commercial deliveries planned for the next quarter.

• Ongoing engagement with US federal and state agencies to secure funding and incentives for the American Metals Plant.