Larvotto Resources (LRV) Q3 2024 TU earnings summary

Executive summary

• Released Pre-Feasibility Study (PFS) for Hillgrove Antimony and Gold Project, confirming robust economics and a maiden Ore Reserve of 606,000oz AuEq at 6.0g/t AuEq.

• Project targets >80koz AuEq annual production and 5,400 tpa antimony, representing 7% of global output.

• PFS based on conservative prices: US$2,000/oz gold and US$15,000/t antimony; spot prices now much higher.

• DFS underway, with completion expected in Q1 2025 and first ore production targeted for early 2026.

• Significant exploration programs at Clarks Gully, Garibaldi, and Bakers Creek to expand resources.

Financial highlights

• LOM (7 years) base case: NPV8% post-tax $157M, IRR 50%, payback <2 years; spot case: NPV8% post-tax $383M, IRR 113%, payback 1 year.

• LOM EBITDA: $652M (base), $1.08B (spot); net free cashflow post-tax: $252M (base), $553M (spot).

• All-in sustaining cost (AISC) for gold: <$900/oz; LOM AISC: $736M (base), $772M (spot).

• Pre-production capital: $73.4M (base), $67.2M (spot); sustaining capital: $184.2M.

• Cash balance at 30 Sep 2024: $4.4M, up from $0.5M previous quarter; $6.2M net cash from financing activities in the quarter.

Outlook and guidance

• DFS completion expected Q1 2025, enabling project financing and development.

• First ore production targeted for early 2026.

• Ongoing drilling at Clarks Gully, Garibaldi, and Bakers Creek to potentially increase mine life and grade.

• Well-funded for continued exploration and development following $5M placement and $1M SPP.