Diatreme Resources (DRX) Q2 2024 TU earnings summary

Executive summary

• Achieved a 17% increase in Indicated Resource and established a maiden 49.5 Mt Measured Resource at the Northern Silica Project (NSP), supporting the solar PV market.

• Advanced regulatory and community engagement for NSP, including signing a negotiation protocol and Cultural Heritage Management Agreement with Walmbaar Aboriginal Corporation.

• Acquired over 90% of Metallica Minerals Limited (MLM), with compulsory acquisition of remaining shares underway.

• Cash and liquids at 30 June 2024 totaled $7.7M, with an additional $21.7M in silica projects JV, totaling $29.4M.

• Rolled over a $1M debt facility, extended to 30 May 2025.

Financial highlights

• Net cash used in operating activities for the quarter was $(1.53)M; year-to-date $(2.31)M.

• Net cash used in investing activities was $(52)K for the quarter; year-to-date $(238)K.

• Net cash used in financing activities was $(530)K for the quarter; year-to-date $(546)K.

• Cash and cash equivalents at quarter end were $7.68M; total available cash including JV was $29.4M.

• Estimated quarters of funding available: 4.9.

Outlook and guidance

• September quarter focus: finalizing NSP EIS Terms of Reference, commencing EIS drafting, and starting exploration drilling at Si2.

• Ongoing negotiations for port access and mining agreements, and further metallurgical testwork at NSP.

• Cyclone Zircon Project: continued partner discussions, bulk sampling drilling, and potential asset spin-out.