European Lithium (EUR) H2 2024 earnings summary

Executive summary

• Completed merger with Sizzle Acquisition Corp, forming Critical Metals Corp (CRML), which began trading on NASDAQ in February 2024.

• EUR received US$750m in CRML shares and CRML was included in major Russell indices.

• Acquired significant interests in the Tanbreez rare earth project in Greenland and agreed to acquire the Leinster Lithium Project in Ireland.

• Secured a US$15m prepayment from BMW under a long-term lithium hydroxide supply agreement.

Financial highlights

• Reported net loss of $212.6m for FY2024, compared to $12.2m net loss in FY2023.

• Major non-recurring expenses: NASDAQ listing ($118.8m), finance costs ($56.1m), loss on fair value of warrants ($31.4m), and merger expenses ($5.0m).

• Cash and cash equivalents at year-end: $5.8m (down from $13.1m in FY2023).

• Total assets: $109.8m; total liabilities: $113.5m; net deficiency: $3.6m.

• No dividend declared or paid.

Outlook and guidance

• Directors believe lithium prices have bottomed and expect recovery, which should benefit shareholder value.

• Ongoing efforts to secure additional capital and funding are underway; going concern is dependent on successful capital raising and cost management.