Financial Health Review (as of 31 December 2024) Cash...

Financial Health Review (as of 31 December 2024)

Cash Position

• Cash on hand: $1.97 million

• Recent capital raise: $2.0M completed in Sept 2024; further $1.6M announced in Feb 2025 (Tranche 1 complete; Tranche 2 pending shareholder approval)

• Cash burn (H2 2024): ~$658k operational + ~$90k investing = $748k total

  • Approx. monthly burn rate: $125k/month

Burn Rate vs. Cash

• At $125k/month, current cash lasts ~15 months, excluding Tranche 2 equity raise.

• If Tranche 2 closes, runway extends into late 2026.

Likelihood of Further Capital Raising

• High probability of equity raising in 12–18 months depending on:

  • Drill success and resulting market re-rating

  • Potential shift to more aggressive exploration across Penny South and Biranup

• Cash inflow tied to milestones (e.g., JORC Resource definition) could be strategic

️ Exploration & Project Summary

Penny South – WA

• Maiden RC drill program (12 holes, ~2,583m) completed in March 2025

• Targeting extensions of Penny West/North high-grade lodes (395koz @ 17g/t)

• Assays pending (due April 2025); successful hits could significantly re-rate SMX

• 100% owned, ~2.5km strike of Penny West Shear

• De-risked via drill-for-equity deal with Topdrill

Biranup (Black Dragon) – WA

• Bonanza-grade surface rock chips up to:

  • 218g/t Au, 302g/t Ag, 100ppm+ Te

• 4.5km structural trend near +5Moz Tropicana Gold Mine

• No systematic RC or diamond drilling post-discovery

• Very high upside, but exploration still at early stage

⚛️ Elliot Lake – Canada (Uranium/REE)

• High-grade REE samples (up to 2,941ppm TREO)

• Uranium anomalism confirmed (175ppm U₃O₈)

• Exploration remains early-stage; currently non-core but could become thematic tailwind exposure

Peer Comparison

Company	Market Cap (approx.)	Flagship Asset	Key Results	Stage	Comments
Strata (SMX)	~$5–6M (post placement)	Penny South, Biranup	Rock chips 218g/t Au, 12 RC holes drilled	Early	High-grade discovery optionality; assays pending
Carawine Resources (CWX)	~$15M	Tropicana North	Multiple >10g/t Au RC intercepts	Resource definition	Similar terrain, advanced drill stage
Breaker Resources (BRB)	~$120M	Bombora	17m @ 5.1g/t Au	Resource	Resource stage, takeover target by Ramelius
Latitude 66 (proposed IPO)	TBD	Finland Au-REE-U	Early-stage high-grade Au-REE hits	Early	Similar energy/REE narrative
TechGen Metals (TG1)	~$6M	WA Ni/Cu/REE	Early U-Au-REE sampling	Early	Thematic overlap

Recommendation

Hold-to-Accumulate: SMX offers asymmetric upside from nearology (Penny South) and bonanza surface results (Biranup), but success hinges on confirming continuity and scale via drilling. The company is funded for near-term exploration, but equity raising will likely recur in late 2025 or early 2026 depending on market reaction to upcoming results.