Ramp up continues to deliver strong performance at the Kathleen Valley Lithium Operation with 81,341 dry metric tonnes (dmt) of spodumene concentrate shipped to customers during the quarter, resulting in a solid financial performance with net cash from operating activities1 of $16.7 million and $192.9 million in cash at 31 December 2024.

Production, cost and shipments performed well in line with expectations.

Highlights

Safety

• The Company recorded a Lost Time Injury Frequency Rate (LTIFR) of 0.66 and a Total Reportable Injury Frequency Rate (TRIFR) of 4.59, both on a rolling annual average basis.

Production and Sales

• Strong ramp-up of production delivered 88,683 dry metric tonnes (dmt) for the Quarter, bringing the total spodumene concentrate produced since production commenced to 116,854 dmt, with a weighted average grade of 5.2% Li2O.
• 246 dmt tantalum concentrate produced at saleable grade, following commissioning of the circuit in October 2024.
• Four shipments departed the Port of Geraldton in the December 2024 Quarter, totalling 81,341 dry metric tonnes (dmt) of total spodumene concentrate.
• The milestone of first cargo to long-term foundational customer LG Energy Solution was achieved in December 2024, with the balance of shipments made to existing offtake customers and spot sale customers.
• Sales revenue of $89.8m was recognised during the Quarter.

Operations

• Open Pit mining moved a total of 2.6Mt of material, including clean ore, ore sorted product (OSP) and waste, with clean ore delivered to the ROM averaging a grade of 1.26% Li2O, in line with expectations.
• Underground mining progressed to plan, achieving a record 1,902 development metres for the Quarter, at an average rate of 317 metres per jumbo per month. First stoping ore is on schedule for Q4 FY25.
• Approximately 1.3Mt of ore had been stockpiled at the end of the Quarter in anticipation of the transition from open pit to underground mining.
• Saleable concentrate inventories stood at almost 25kt at Quarter end.
• Strong performance in the plant ramp-up resulted in approximately 619kdmt ore processed for the Quarter. All key metrics were in line with expectations, including average SAG mill availability of 89% (92% in December) and average circuit lithia recovery of 55% (59% in December) as progress continues towards target plant recoveries.

Corporate

• Unit operating cash cost (excluding royalties) of $1,000 per dmt SC6e sold and All In Sustaining Cost (AISC) of $1,170 per dmt SC6e sold for the December 2024 Quarter.
• The Company issued guidance of an expected $775 – 855 per dmt SC6e sold for Unit Operating Costs (FOB) for H2 FY25 driven by the business optimisation work undertaken during the Quarter. As ramp-up progresses, unit operating costs and AISC are expected to normalise as fixed costs get diluted by increased volumes.
• Cash and trade receivables as at 31 December 2024 were $205.0 million, with a further 24,904 dmt of saleable concentrate inventory, demonstrating the Company’s operating discipline and capacity to generate $16.7 million net cash from operating activities1 in the initial phases of production ramp-up.