Black Canyon (BCA) Q1 2025 TU earnings summary

Executive summary

• Positive Scoping Study for KR1 and KR2 deposits confirms strong financial returns with a pre-tax NPV of A$340m and IRR of 70% over a 16-year mine life.

• Life of mine (LOM) revenue projected at A$2,781m and EBITDA at A$654m, with average annual operating cashflow of A$46.1m.

• Largest manganese resource in Western Australia, with a global MRE of 314Mt @ 10.5% Mn, including 33.1Mt contained manganese.

• Discovery of high-grade manganese at Wandanya, with consistent mineralisation and grades up to 48.7% Mn over 240m of strike.

Financial highlights

• Placement raised A$0.85m and Share Purchase Plan (SPP) raised an additional A$0.26m.

• Consolidated available cash at 30 September 2024 was A$813k, with no debt.

• Expenditure for the quarter: A$451k on exploration and evaluation, A$143k on admin and corporate costs.

• Net cash used in operating activities was A$589k; net cash from financing activities was A$700k.

Outlook and guidance

• Plans to receive and review RC drilling assays for Wandanya and KR2, update KR2 Mineral Resource, and continue hydrometallurgical testwork for battery-grade HPMSM.

• Ongoing engagement with third parties for offtake or involvement in HPMSM and manganese concentrate products.

• Additional gravity-based metallurgical testwork and exploration programs planned for the December 2024 quarter.