De Grey Mining (DEG) H1 2025 earnings summary

Executive summary

• De Grey Mining focused on advancing the Hemi Gold Project (HGP) towards construction, including de-risking engineering, progressing approvals, and finalising project financing and contracts.

• Northern Star Resources proposed to acquire De Grey via a Scheme of Arrangement, offering 0.119 NST shares per De Grey share.

• Hemi is a Tier 1 gold discovery with a November 2024 Mineral Resource Estimate (MRE) of 13.6Moz at 1.4g/t Au, including 11.2Moz at Hemi and 2.4Moz in regional deposits.

• The company reported a profit after tax of $3.66M for the half-year ended 31 December 2024, compared to a $7.02M loss in the prior period.

• No dividends were declared or paid during the period.

Financial highlights

• Revenue for the half-year was $20.15M, up from $5.13M in the prior period, mainly from interest income.

• Net profit after tax was $3.66M, reversing a prior year loss of $7.02M.

• Basic earnings per share were 0.15 cents, compared to a loss of 0.39 cents per share in the previous year.

• Cash and cash equivalents at 31 December 2024 were $30.85M, with an additional $755.54M in short-term deposits.

• Net cash inflow from operating activities was $54.7K, with significant outflows for investing activities, mainly exploration and deposits.

Outlook and guidance

• Final Investment Decision (FID) for Hemi is targeted for calendar 2025, pending statutory approvals and financing.

• Project construction is expected to take two years post-approval, with primary federal and state environmental approvals anticipated in the June quarter 2025.

• The company is considering discretionary hedging to de-risk capital payback, given strong gold prices.