Leo Lithium (LLL) H2 2023 earnings summary

Executive summary

• Advanced Goulamina Lithium Project to 60% completion, targeting first production in Q3 2024, but exited Mali after a government dispute, agreeing to sell all project interests to Ganfeng for US$342.7 million, subject to approvals.

• Achieved major construction and operational milestones, including first ore blast, expanded mineral resources by 48% to 211Mt at 1.37% Li₂O, and maintained an excellent safety record with over 3 million hours worked without lost time injury.

• Resolved a protracted dispute with the Mali Government via a US$60 million settlement, securing project permits and exemptions, and enabling project completion and sale.

Financial highlights

• Group loss after tax for 2023 was $1.7 million, compared to a profit of $66.3 million in 2022, mainly due to the absence of prior year one-off gains.

• Recognized a $7.9 million profit on dilution from Ganfeng's equity investment in the Goulamina JV.

• Closing cash at 31 December 2023 was $33.6 million, down from $70.8 million at the end of 2022.

• Goulamina JV closing cash was US$9.2 million at year-end, with major outflows for project development and mine costs.

Outlook and guidance

• Goulamina Project remains on track for commissioning in H1 2024 and first spodumene production in Q3 2024.

• Sale of remaining 40% interest in the project to Ganfeng for US$342.7 million is expected to complete in late 2024, subject to shareholder and regulatory approvals.

• Ganfeng will provide up to US$150 million in prepayment funding to ensure project commissioning and ramp-up.