Brazilian Rare Earths (BRE) Q2 2024 TU earnings summary

Executive summary

• Ultra-high grade rare earth mineralisation discovered at Sulista, with grades up to 22.4% TREO and significant concentrations of NdPr, DyTb, niobium, scandium, and uranium.

• Pelé project exploration confirmed large-scale, high-grade REE-Nb-Sc-U mineralisation, with outcrop assays up to 20.7% TREO and a maiden diamond drilling program underway.

• Key export approvals obtained, including consent to export uranium and rare earth concentrates; non-binding MoU signed with Indústrias Nucleares do Brasil S.A. (INB) for uranium co-product development.

• $80M capital raised via placement to accelerate exploration and development at Monte Alto, Sulista, and Pelé projects.

• Appointment of experienced rare earths executive Eric Noyrez as Non-Executive Director.

Financial highlights

• Ended the quarter with A$96.8M in cash and cash equivalents, up from A$26.9M in the previous quarter.

• Net cash used in operating activities was A$6.6M for the quarter.

• Net cash from financing activities was A$76.6M, primarily from the A$80M equity placement.

• Quarterly exploration expenditures totaled A$5.6M, mainly for Sulista and Pelé programs.

Outlook and guidance

• Exploration to accelerate at Sulista and Pelé, with focus on deeper drilling and feasibility studies.

• BRE and INB to negotiate binding contracts post-feasibility study for uranium co-product and downstream processing.

• Ongoing expansion of exploration targets, with Sulista and Pelé areas significantly larger than Monte Alto.