Filo (FIL) Q2 2024 earnings summary

Executive summary

• Entered binding agreement for acquisition by BHP and Lundin Mining for C$4.1B, expected to close Q1 2025.

• Drilling operations temporarily halted in Q2 2024 due to weather; resumption planned for Q3 2024.

• Assay results confirm significant expansion of Bonita Zone and potential continuity with Aurora Zone.

Financial highlights

• Net loss of $18.9M for Q2 2024 and $52.1M for H1 2024, compared to $22.1M and $44.2M in 2023.

• Exploration and project investigation expenses were $21.3M in Q2 and $53.1M in H1 2024.

• Cash and cash equivalents at $28.1M and net working capital at $17.6M as of June 30, 2024.

• Operating losses offset by $2.8M and $6.1M in net gains from marketable securities in Q2 and H1 2024.

Outlook and guidance

• Drilling to recommence in Q3 2024; 2024 drilling target revised to 30,000–35,000m from 40,000m.

• Focus remains on exploration and resource growth, with ongoing geological modeling and metallurgical testwork.

• Project timelines subject to equipment, staff availability, and safe operating conditions.