Black Canyon (BCA) Q4 2024 TU earnings summary

Executive summary

• Released a positive Scoping Study for KR1 and KR2 deposits, confirming strong financial returns with a 16-year mine life and robust project economics.

• Controls the largest manganese Mineral Resource in Western Australia, totaling 314 Mt @ 10.5% Mn, with 33.1 Mt contained manganese.

• Ongoing exploration at the high-grade Wandanya Project, with drilling scheduled for the next quarter following promising surface samples.

Financial highlights

• Scoping Study for KR1 and KR2 projects estimates pre-tax NPV of A$340m (8% discount rate) and pre-tax IRR of 70%.

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

• Modest capital requirement of A$84m and payback period of less than two years.

• Cash balance at 30 June 2024 was A$702k, with no debt.

• Expenditure for the quarter: A$382k on exploration and evaluation, A$153k on admin and corporate costs.

Outlook and guidance

• Planned RC drilling at Wandanya and infill drilling at KR2 to upgrade resources.

• Continued hydrometallurgical testwork to produce battery-grade HPMSM.

• Reviewing locations for a HPMSM facility in Australia and progressing offtake discussions.