Leo Lithium (LLL) Q3 2024 TU earnings summary

Executive summary

• Shareholders approved the sale of Leo Lithium's remaining 40% stake in Mali Lithium B.V. to Ganfeng for US$342.7 million, with completion expected in mid-November 2024 pending Chinese government approval.

• Management of the Goulamina Project was transferred to Ganfeng effective 1 July 2024, and all Leo Lithium personnel have exited Mali.

• Proceeds from the sale will be distributed to shareholders in two tranches, with payments planned for January 2025 and July 2025.

• No resumption of trading for Leo Lithium shares on the ASX due to compliance concerns following the asset sale.

Financial highlights

• Closing cash at 30 September 2024 was A$81.7 million, up from A$77.6 million at 30 June 2024, mainly due to GSA receipts and JV cost refunds.

• Major cash inflows included A$3.4 million from GSA receipts and A$8.8 million in JV reimbursements; outflows included A$6.7 million in JV development costs and A$3.4 million in staff and admin expenses.

• A$75.0 million held in term deposits and A$5.8 million in high-interest accounts at quarter end.

Outlook and guidance

• Completion of the MLBV Sale is anticipated in mid-November 2024, with Tranche 1 distribution to shareholders in January 2025 and Tranche 2 in July 2025 if no new investments are identified.

• If value-accretive investment opportunities are found, shareholder approval will be sought before deploying Tranche 2 proceeds.

• A small core team will remain to monetize the Trailing Product Sales Fee and manage distributions.