Cash Position Strengthened via Private Placement
Quarter-end cash of $6.4M versus $2.5M a year ago (+156.0%) supported by a private placement with net proceeds of ~ $4.0M; short-term receivables reduced to $5.2M from $7.7M (-32.5%).
Bad Debt Provision Reduced to Near Zero
KCl/bad debt provision declined to ~ $0 in Q1 versus $500k in prior-year Q1 (100% reduction) following a stricter credit policy that stopped sales to higher-risk customers.
Cost Reduction Program with Material Savings Targeted
Ongoing cost-cutting program targeting BRL 7.5M of savings this year and approximately BRL 9.4M over a 12-month period, with early SG&A and sales expense reductions already visible (sales expense down from $851k to $727k, -14.6%).
Operational Stability in EBITDA Despite Weak Top Line
EBITDA before non-cash events improved modestly to negative $1.3M and management reports EBITDA and net loss roughly in line with the prior year, indicating some operational containment despite revenue decline.
Rare Earths Project: High-Grade, High-Potential Discovery
Reassays and resource calculation indicate a prospective resource (reported 1.3 billion tonnes) with magnetic rare earth oxide (MREO) concentrations up to ~26% and leachate magnetic concentrations ~40% (vs ~14% cited for a peer), shallow drilling (0–10m), active drilling (5 rigs with 2 more planned), and high-value elements (neodymium/praseodymium/dysprosium/terbium) present — signaling a significant upside development opportunity.