Brazilian Rare Earths (BRE) H1 2024 earnings summary

Executive summary

• Focused on exploration of rare earth elements (REE) and critical minerals in Bahia, Brazil, with major projects at Monte Alto, Sulista, and Pelé.

• Significant expansion of exploration activities, including a 12,000m Phase II drilling program at Monte Alto and new discoveries at Sulista and Pelé.

• Completed acquisition of Rio Tinto's exploration project, securing over 800 km² of tenements and extensive drilling data.

• Secured key export approvals and entered a strategic partnership with Indústrias Nucleares do Brasil S.A. (INB) for uranium and REE concentrate export.

Financial highlights

• Revenue for the half-year was A$590,023, up from A$178,895 in the prior year period.

• Net loss after tax increased to A$28,906,030 from A$7,359,897 year-over-year, mainly due to higher exploration and evaluation expenses.

• Exploration and evaluation expenses rose to A$26,553,679 (2023: A$5,127,362), driven by the Sulista project acquisition and increased drilling.

• Finance costs decreased to A$3,052 from A$1,425,291 due to conversion of convertible notes to shares.

• Share-based payments expense was A$1,628,319, reflecting vesting of management and director options.

Outlook and guidance

• Ongoing large-scale exploration at Monte Alto, Sulista, and Pelé, with expanded drilling and new project areas.

• Strategic focus on scaling up resource base and advancing feasibility studies for downstream processing and export.