Leo Lithium (LLL) Q2 2024 TU earnings summary

Executive summary

• Settled all disputes with Mali Government, enabling sale of remaining 40% stake in MLBV for US$342.7M, subject to shareholder approval.

• Project reached 86% completion; first ore processing expected Q3 2024.

• Management of Goulamina Project transferred to Ganfeng; Leo Lithium to provide transitional services until November 2024.

• Shareholders to receive distributions from sale proceeds in January and July 2025.

Financial highlights

• Received US$10.5M non-refundable deposit for MLBV sale; next instalments: US$161M and US$171.2M (plus interest) due by June 2025.

• Cash balance at 30 June 2024: A$77.6M; Goulamina JV held US$19.4M.

• Major cash inflows: A$99.3M from 5% MLBV sale, A$15.7M deposit, A$10M JV reimbursements.

• Major outflows: A$90.8M Mali Government settlement, A$11.5M capital gains tax, A$10.4M JV costs.

• Company remains debt free; no new equity or debt raised since IPO.

Outlook and guidance

• Shareholder vote on MLBV sale scheduled for 31 July 2024; Board recommends approval.

• First distribution of net proceeds to shareholders planned for January 2025, second in July 2025.

• Goulamina Project on track for first ore processing in Q3 2024, pending final export permit.

• Ganfeng to provide up to US$150M in prepayment funding for project completion.