Prospect Resources (PSC) H2 2024 earnings summary

Executive summary

• Achieved significant progress in battery and electrification metals, focusing on copper in Zambia and lithium in Zimbabwe and Namibia.

• Acquired 85% of the Mumbezhi Copper Project in Zambia, unlocking a disputed asset with strong exploration potential.

• Advanced Step Aside (Zimbabwe) and Omaruru (Namibia) lithium projects, with notable discoveries and drilling results.

• Reduced exploration at Step Aside and Omaruru to focus on Mumbezhi, with commercialisation options being considered for lithium assets.

Financial highlights

• Revenue of $801,000 for FY2024, down from $825,000 in FY2023.

• Net loss after tax of $7,019,000, compared to a profit of $5,556,000 in FY2023 (prior year included significant asset sale gains).

• Cash and cash equivalents at year-end: $8.3 million, down from $26.2 million.

• Exploration and evaluation expenditure increased to $14.0 million from $1.6 million, reflecting major project acquisitions.

• Basic loss per share from continuing operations: (1.49) cents.

Outlook and guidance

• Targeting maiden Mineral Resource Estimate and Scoping Study for Mumbezhi in H1 2025, with Mining Lease Application to follow.

• ESIA studies and metallurgical test work underway to de-risk Mumbezhi and support future development.

• Commercialisation of Step Aside and Omaruru lithium projects under consideration, with Step Aside actively marketed.

• Strategy remains focused on electrification minerals exploration and development in sub-Saharan Africa.