Foresta Group Holding (FGH) H2 2024 earnings summary

Executive summary

• Secured a 30-year lease for industrial land in Kawerau, NZ, to establish a flagship manufacturing facility for bio-based energy and chemicals, with resource consents and plant design underway pending funding.

• Signed major offtake and supply agreements, including a 10-year contract with TERL for torrefied wood pellets and a 5-year renewable agreement with AV Pound for pine chemicals.

• Raised $2.33M in October 2023 and $1.06M in May 2024 to accelerate project development; further $1.1M raised in November 2024 and convertible notes totaling $2.575M post year-end.

• Board changes included the resignation of the Managing Director and appointment of a new Non-Executive Director in July 2024.

Financial highlights

• Reported a net loss of $9,650,145 for FY24, compared to a $8,206,788 loss in FY23.

• Revenue from contracts with customers was $15,792; insurance recoveries totaled $1,830,956.

• Negative cash flows from operating activities of $4,073,919, up from $3,461,111 in FY23.

• Cash and cash equivalents at year-end were $185,748, down from $1,439,582.

• Significant impairments: $6.6M on assets, including scrapping of extraction plant and write-downs at Apple Tree Creek and Landsborough.

Outlook and guidance

• Focus for FY25 is securing project funding and advancing the Kawerau facility.

• Management remains committed to strategic goals but acknowledges material uncertainty regarding going concern due to ongoing losses and funding needs.