Prospect Resources (PSC) Q4 2024 TU earnings summary

Executive summary

• Acquired 85% interest in the Mumbezhi Copper Project in Zambia, validating significant historical copper drill results and commencing a 7,000m maiden drilling program targeting resource definition and growth at Nyungu Central.

• Completed Phase 4 drilling at Step Aside Lithium Project (Zimbabwe) and Phase 2 at Omaruru Lithium Project (Namibia); both projects now focused on monetisation or commercialisation as lithium markets improve.

• Exercised option for JV earn-in at Bikita Gem Lithium Project (Zimbabwe), with fieldwork and trenching underway and a 1,000m RC drilling program planned.

• Appointed Ian Goldberg as Executive Director Finance and confirmed CEO Sam Hosack's permanent relocation to Zimbabwe to focus on African operations.

Financial highlights

• Ended the quarter with A$8.34 million in cash and zero debt.

• Net cash outflow from operating activities was A$1.45 million for the quarter, with A$9.48 million used in investing activities, mainly for the Mumbezhi acquisition.

• No revenue from customers; primary cash outflows were for exploration, staff, and administration.

• Estimated quarters of funding available is 0.8, but excluding the one-off Mumbezhi payment, funding extends to 3.79 quarters.

Outlook and guidance

• Targeting declaration of a maiden JORC-compliant copper resource and Scoping Study for Mumbezhi within 1H 2025.

• ESIA for Mumbezhi underway, with submission to ZEMA expected late 2024 and mining lease application in early 2025.

• Monetisation of Step Aside Lithium Project expected to support further copper exploration funding.

• Commercialisation strategies being pursued for Omaruru and Bikita Gem projects as lithium markets recover.