Highfield Resources (HFR) Q2 2025 TU earnings summary

Executive summary

• Entered non-binding LOI with Qinghai Salt Lake Industry for proposed US$300M equity subscription to advance Muga Project and strategic opportunities.

• Secured €1.15M stand-by loan from EMR Capital and extended convertible loan note maturity, enhancing financial flexibility.

• Leadership changes: Carles Aleman appointed CEO (Geoalcali), Olivier Vadillo as Head of Corporate Strategy after CEO resignation.

• All AGM resolutions passed, including director re-elections and placement facility approval.

• Disciplined cash management continued, with non-essential expenditure postponed or cancelled and furlough scheme extended.

Financial highlights

• Cash at bank at 30 June 2025 was A$6.4M, down A$1.9M from previous quarter.

• Net cash used in operating activities for the quarter was A$2.1M.

• Operating expenditure reduced by 3.6% sequentially from previous quarter.

• Payments to related parties totaled A$255K for the quarter.

Outlook and guidance

• Focus remains on finalizing Qinghai Salt Lake due diligence and strategic financing.

• Advancing construction readiness for Muga Project and progressing Southey acquisition.

• QSL Cornerstone Placement exclusivity period extended to 15 September 2025 or earlier if binding documentation is signed.