Ardea Resources (ARL) H2 2024 earnings summary

Executive summary

• Achieved a landmark Critical Minerals collaboration with Sumitomo Metal Mining and Mitsubishi Corporation, securing full funding for the Kalgoorlie Nickel Project (KNP) Goongarrie Hub DFS up to A$98.5M, with the Consortium earning up to 50% JV interest upon positive FID.

• Goongarrie Hub PFS projects average annual EBITDA of A$800M over 40 years, post-tax NPV7 of A$4,980M, IRR of 23%, and a 3.1-year payback period.

• KNP Mineral Resource Estimate stands at 854Mt at 0.71% Ni and 0.045% Co, making it the largest in Australia.

• Company remains debt-free with a cash position of $14.8M as of 30 June 2024.

Financial highlights

• Operating loss after tax for FY2024 was $7.7M, compared to $4.2M in FY2023.

• Cash reserves increased to $14.8M (2023: $10.6M).

• Capitalised mineral exploration expenditure rose to $42.9M (2023: $35.4M).

• 22.9M new shares issued, raising $16M before costs.

Outlook and guidance

• DFS for Goongarrie Hub underway, with completion targeted for H2 2025.

• Consortium funding ensures acceleration of DFS activities and project development upon positive FID.

• Market outlook for nickel remains strong, driven by EV and renewable energy demand, despite recent price volatility.