Prospect Resources (PSC) H2 2024 earnings summary

Executive summary

• Achieved significant strategic progress by acquiring an 85% interest in the Mumbezhi Copper Project in Zambia, marking a major pivot to copper and expansion in sub-Saharan Africa.

• Advanced lithium exploration at Step Aside (Zimbabwe) and Omaruru (Namibia), with notable discoveries and drilling results, but reduced exploration activity to focus on Mumbezhi.

• Completed acquisition of 100% of Omaruru Lithium Project and began monetisation process for Step Aside and Omaruru assets.

• Raised $8 million via placement to fund Mumbezhi exploration and development.

Financial highlights

• Reported a net loss after tax of $7,019,377 for FY2024, compared to a profit of $5,556,000 in FY2023, reflecting increased exploration and acquisition costs.

• Revenue from continuing operations was $801,000, slightly down from $825,000 in the prior year.

• Cash and cash equivalents at year-end were $8.3 million, down from $26.2 million at June 2023, mainly due to the Mumbezhi acquisition and exploration spend.

• Exploration and evaluation expenditure increased to $14.0 million from $1.6 million year-over-year.

Outlook and guidance

• Focused on rapid advancement of the Mumbezhi Copper Project, targeting a maiden Mineral Resource Estimate and Scoping Study in H1 2025.

• Plans to submit a Mining Lease Application for Mumbezhi in H1 2025.

• Exploration activities at Step Aside and Omaruru scaled back to minimum commitments, with ongoing efforts to commercialise these assets.