Bradda Head Lithium (LSE:BHL) — AGM Proceedings 2025

0:00 Good afternoon, and welcome to the BRADDA HEAD LIMITED AGM proceedings. Throughout this recorded meeting, attendees will be in listen only mode. Questions can be submitted at any time by the q and a tab situated in the right hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. Have the company can view your questions submitted today and publish responses where it's appropriate to do so. Just so the team team will not be on camera today due to the connectivity from their locations, but I'd now like to hand you over to Ian Stalker, executive executive chairman. Chairman. Good afternoon, sir. Good afternoon. Thanks very much. Ladies and gentlemen attending the meeting, welcome to your AGM. My name is Ian Stalker, and I will act as chairman for the purposes of this meeting for the way forward. A quorum was necessary to constitute this AGM.

0:47 One member holding not less than 2% of the votes or by proxy, so the requisite quorum is present. The notice convening the meeting has been in your hands for the required twenty one days. And with your approval, I will take this as read. On the platform today, I am delighted to have with me, most of the board members. We have Dan Amek on the call with us. We have Ewen Jenkins, and we have Barelli all on the call attending with us. And I also have Katie Eerock, our company secretary, who is here for our assistance and help as well going forward. The format for the meeting going forward, we'll have a presentation, which I will undertake, and then we will take all of us through the resolutions as they appear in the notice of the meeting and take the vote, which, to all intents and purposes, has already taken place.

1:40 So I will continue with the presentation. It's up there on the dashboard. Hopefully, everyone can see it. Let me just get forward, which is the BRADDA HEAD LITHIUM presentation, and that highlights we are aggressively moving forward in The USA, lithium space. And so let me just rattle on. There is the normal, disclaimer, which trust most people are familiar with, And then I can move on to BRADDA HEAD itself. We remain a diversified lithium portfolio company with all three types of lithium in our portfolio, pegmatites, clays, and brines. We are in tier one political, locations in The USA. They're highly ranked by the renowned Fraser Institute of Survey of Mining Companies.

2:27 We have been working diligently, particularly in this last year, with the relationships at state level in Arizona and in Nevada, trying to get ourselves into the eyesight of the USA government and executive orders that have been, out over the last twelve months. And I'm delighted to say we're slowly but surely making progress there. And as 2026 unfolds, I'm pretty optimistic that we should get some, extra help from the US government because they are very keen, as everyone will be aware, I'm sure, in this call to have their own lithium supply. We are particularly leveraged with significant movement in recent times with the majors coming into a different range of the lithium species, including lithium brine.

3:16 We're focused on production. One of the reasons we say that is because our spodumene project at Sang Domingo, we believe, can bring us to production in a relatively short period of time. We are, as a management and board, all committed to this company. We have supported it, and we have over 20% of the shares held by the board and management. And therefore, we believe, in summary, right time, right place, and right people. And we've been very quiet, and I must be honest with everyone, in terms of the business in the last twelve months. We've kept our powder dry. There was no love at all in the market space for lithium, in reality, and all companies suffered. So we cut our pocket. We cut our cloth according to our pocket.

4:01 We reduced, unnecessary expenses, unnecessary work, etcetera. And we've, therefore, been in a position to ensure that the company survived the downturn of 2024 and 2025 without having to go to the market for any extra money. And so now as we've seen at the end of this period, end of twenty twenty five, there has been a gradual increase in the spodumene price and in the lithium carbonate price. The spodumene price has moved from roughly about $500 per ton to now upwards of $131,400 dollars, which makes it a much more intriguing lithium scenario for us. And, of course, as a consequence, we are ready to go. We have not been sitting doing nothing. We've been getting ourselves ready to get moving when the tide has turned. The next slide just shows where we are in terms of location, obviously, in The USA, as you can see, with the brains over in Nevada, the pigmentites in Arizona, and our clays also in Arizona.

5:03 That is the slide just highlighting the kind of recovery that's happened in the spodumene pricing and in the battery grade lithium carbonate pricing. It's increased since that November period. It's still maintained that upward trajectory. And so we now feel that it's time to get back in and get moving, which is what we've been all waiting desperately to do and are ready to kick off and get moving. We start with our pegmatites. We believe we're developing a world class lithium district in Arizona. You can see in that outline there, the sort of black graph or the black line within the graphic, which is our license area and a series of targets, some of which have been drilled, some of which haven't, and some of which will take us further along the line to developing a resource in our own property here at San Domingo.

5:51 We find it very exciting. We continue to find more and more interesting areas. And I have to say that the the time has not been wasted in the last the last twelve months since we last drilled. It's been taken up by making sure we understand more of the structural texture of the area and the the way of the integrity of the lithium in terms of the spodumene as it's laid out in the area of interest for ourselves. So we have a big project there. We've got 20 just over 20 just about 21 square kilometers of ground, eight historic lithium mines in the area, so that this is not an area that has, has had no work done previously. And, of course, people don't work unless there's a revenue return, so you can bet your bottom dollar it was economic in those days.

6:36 We've drilled a 107 holes, 13,000 meters. We've had some rather sweet intersections, which at the time were good. But, of course, as the lithium market went soft, nobody really cared. But we will become back into the jumbo target, for example, the Morningstar target, White Ridge, and sampling at the new target at Draken where we think we can start putting together a resource, a four three one zero one compliant resource. We have, interestingly enough, done some of the the pictures actually speak a thousand words, to be honest. And if anyone's got the time, you'll see the pictures later on when this gets into our presentation in the web page over the next couple of weeks or whatever. But the pictures demonstrate the size of the pigments that you can see people working out there in the slide. It really is quite an impressive part of the world.

7:25 We actually did some metallurgical testing, and the reason I wanted to mention that is because the metallurgical testing, as highlighted, we can produce a gravity concentrate based on the samples we took that runs about five and a half to 6% with a recovery of over 60%, roughly 60% lithium contained to the gravity concentrate, which means we could then sell that as a sellable product into the lithium market space. And that's the spodumene that's giving you this days, $13.50, $1,400 per ton, and we think we can do that in a much more reduced operating cost, probably our guesstimate, and I highlight it is a guesstimate of about 50% of that. So we have that opportunity. The next steps are to go back into the new targets at Dragon, Midnight Elves, Ruby Soho, etcetera. Permits have been granted by BLM, and we wanna transfer them into resource definition targets and then follow-up into a four three one zero one technical report and therefore move into the operational mode that I potentially spoke about there.

8:31 We have a second project, which is also strategic in its nature, and it's called the LITHIUM and CLEAY project, also in Arizona. You can see what we call the Basin clay project and the Wikiup clay project highlighted in this slide. We have drilled out, in particular, the Basin clay project partially. We have, as you can see there, around about 2,800,000 tons of, lithium carbonate in the mineral resource estimate, which is what got us our money in the first place from a little company called LRC, Lithium Royalty Company. But we have the opportunity of building a much larger resource there, because it's a massive environment for lithium running about a thousand PPM, which is comparable with some of the bigger projects in Arizona, particularly the Thacker Pass one that we mentioned on the right hand side there, which is moving into construction mode at the moment and hopefully into well, not hopefully. It will move into operational mode shortly thereafter.

9:31 And they will be at the cutting edge of the lithium in clays, which we will obviously take advantage of as we build up our own resource. And it becomes critical and or strategic because of its size. It's very hard to ignore this kind of contained lithium when you are desperate for lithium, for battery needs, etcetera, whether it's battery storage or EV vehicles. That's another highlight of the claims, just highlighting when we completed the MRE, etcetera, and the LRC royalty payment. And, again, compared to the pegmatites, very similar land package, about 20 square kilometers. And we are busy with the I think, quite importantly, just the last comment there, the exploration plan of operation, EPO permit. We are finishing that off in the first quarter twenty twenty six, which means that we, going forward, will not be constrained in terms of timing moving forward to the next phase of exploration. So it it makes it a very attractive position for us, and we have strategically moved forward sensibly with the permitting. It doesn't happen overnight in The States, just so everyone gets reminded of that. We we have a lot of hoops we have to jump through, which we've done step step by step, and we're now in the position, I say, to move further forward into developing this resource package.

10:47 The lithium oil brands have been attracting attention of some of the majors. Direct lithium extraction is a technology that's been about now for a few years, relatively short in terms of the history of of general mining, for lithium, but it's still it's become more common and closer and closer to economic, advantages associated with it being identified. We have in the East Texas area, we've got of Smackover, we've got several holes that have been drilled previously, historically, giving us pretty good grades there of 561 milligrams per liter. They compare very sensibly with the brains in, say, Argentina, Chile, etcetera. And so there is a quite a push on to pick up the brain story. Exxon have are busy with standard lithium in Albemarle, as you can see, to the, east of us. And then Pantera has also been picked up by EnergyX.

11:43 And so we've had some inquiries for the, lithium oil brains, which we are dealing with. Nothing really that we can make any serious announcement about, but there's certainly attention being brought to bear on that and the Pennsylvania one, which is the one on the right hand side of the slide, where you can see we've got a much bigger land package. So it's something that's it's we have. It's not our primary target, and therefore, should there be interest, it's certainly something we'd be considered going forward. We have also the traditional brains, I e, not associated with the old oil operations here in Eureka and the Wilson projects. They remain more or less as we've had them for two or three years. They're fairly expensive to drill out. They're fairly deep holes to get down to the potential perch water tables that exist in both of these projects.

12:33 They've been identified as as as water tables, hopefully containing lithium being identified at certain depths. We are ready to go there. And, again, it's the kind of thing it's up there. It's not key for us, but it's nice to have as the lithium market starts getting more attention. And we are obviously looking to see how we can bring value from these projects into our own little company. So in terms of The US market, there is no doubt that Trump's American first directive is a bonus for us being USA focused. It's something we take very seriously, and that's why, most of the times when we're speaking to people within The USA, it tends to be, our COO, Joey Wilkins, who's used because he doesn't have the same accent as I have. He's a gentleman from Arizona and is well received, obviously, by the American government because of his his whole history within that area and his father's and family's history.

13:32 So we are well well positioned within The USA. We think The USA is the right place to be at the moment for a company of our size and our current situation, and we're really strategically positioned to benefit from this opportunity going forward. And so for for me, I think we're in a great end user position. You can see there the kind of guys that use it. We're close to the major car companies and to the big battery development area, literally across the border or so from Nevada into California. So position wise, we're good. And there's no doubt there's a growing expectation, and as you can see, the deposit pedigree, growing production demand and production development between Silver Peak, which has been going for some time, that's the brines, similar to our our Nevada brines, but Rhyolite Ridge, TLC, and Thacker Pass, all with fairly large market caps, certainly significantly larger than what we have.

14:27 So we think there's a lot of growth in our opportunity here, in the end market, little bit ahead. We think we've got the the assets to to make some progress, and I think we've got the team to do that. As I mentioned on the call with me, we've got Denim, we've got Alex, and we've got Ewan, and we've got Katie as our CFO. Peoria to enjoy the operational guys are currently enjoying a bit of a break. They've been pretty hectically at work for a whole range of reasons, which I hope we can highlight further in the New Year. But we are ready to go, ladies and gentlemen, and I think we're in great position. We've got the capital structure as highlighted there. I mentioned earlier the board and directors at 20%. We've got some fairly large shareholders, some individuals, high net bus, etcetera. We've got some private clients, etcetera, etcetera, and we've got a few interested, shall we say, institutions with about 35% being the sort of general trade level of our market going forward.

15:33 There's our advisers. We work with an engineering company in Canada as our technical group. In a nutshell, gentlemen and ladies, that concludes the presentation, and I will now take some questions and move forward to to answering those questions. Let me just make sure I've got it. Here we go. So I've got some questions which I'll kick it off with, on the basis that they are still out there. When are we likely to produce lithium and obtain sales? Well, hopefully, I've kind of addressed it as we go forward, but in a little bit more detail, we believe that the pegmatites are the nearest to production scenario.

16:31 We have highlighted with our test work that we can produce a concentrate of a sellable quality, and that we can take that to certain, refineries within the North American context. When I say North America, obviously, includes Canada as well as The USA. And so our push is to get into that. We do not think it's a major drama permitting. We think that the areas where we're looking at, because they've been historically mined and previously disturbed ground, the permission to get in there and mine in a relatively small scale, but sensible scale, will result in a fast permitting scenario. And we believe that our OpEx cost will be significantly less than the current sales price that we can get for the concentrate. So we're pushing on. I can't give a date because it would be wrong to do so, and I'd be held hostage to it, but that's the intention to move as quickly as we can, as fast as we can.

17:26 The poll also asked a question about preferred option for financings in the next twelve months. Naturally, as you'll be aware, Paul and Paul should be aware, we are a junior company, and part of our structure going forward is a necessity to finance, and we will be looking to finance ourselves certainly going forward. At the moment, we've got, some options in place. And because of the change in the lithium market space, there's a lot more options that are coming up. People want to get involved. We have the right projects. We're in the right country. So I believe funding will be, relatively straightforward. Nothing's ever easy in this game, but I hope, relatively near future, we'll have some positive confirm confirmation about funding going forward. We're certainly not in any dire straits. We're in good shape as a company.

18:19 We have stuck to our principles about not wasting money, not spending time. We didn't do aggressive marketing, for example. We didn't fly here, there, and everywhere for the sake of it. We kept our coins in our pockets, and we used them for the benefit of the business and, therefore, the shareholders going forward. So, Paula, hope hopefully, that answers, your question. That's the only two I can see unless there's any more coming in. Oh, yeah. Sorry. There's another one that just popped up. The company has always maintained a range of different lithium plays. Which of these would we consider relinquishing in the near future? Well, I kinda again touched on it, Paul. And for those listening in, I've kinda said that the the key for us is the pegmatites and that near production type scenario.

19:11 The clays, we also like. I think it's strategic, but the brains, low, good quality projects and absolutely nothing wrong with them. If they were our only business, venture, then we'd be very strong and aggressive with pursuing them. But for us, they are the areas where, if there is interest and there has been commentary made about them, we would certainly consider looking at how we could best realize value for the company going forward. Okay. So I think that completes the questions. In which case then, I will pass this the baton over to Denham who's sitting in the Isle Of Man, who's now going to formally put to the meeting the resolutions detailed in the documents posted to everyone involved. Thank you, Denham.

20:00 And thank you very much indeed, Ian. Moving on to the resolutions, I can confirm that we've received 11 proxies representing approximately a 116,400,000 votes cast. So going to the first resolution, which is an ordinary resolution to receive and adopt the report of the directors and financial statements for the year ending 02/28/2025 together with the report of the independent auditor. I'll now ask Ian to second that resolution. Seconded. Thank you. And with the proxies and votes, we have 95 in favor and 5% against.

20:46 None withheld. I declare the resolution carried. Resolution two, which is an ordinary resolution to reappoint PKF Littlejohn LLP as auditor turned office from the conclusion of the meeting to the conclusion of the next meeting of which the financial statements are laid before the company as a remuneration to be determined by the directors. I'll now ask again to second the resolution. Seconded. And I'll put the resolution to the vote, and the votes for resolution number two are 95% in favor and 5% again against. I declare this resolution carried. I'll take resolutions three to seven together.

21:36 These are ordinary resolutions. And as part of the QCA code, each of the directors will put themselves forward for reelection at each AGM. So to elect the directors of the company who will serve until the end of the next annual general meeting or until their successors are appointed, the directors being Ed Stalker, myself, Denim Eek, Jim Mellon, Alex Borelli, and Ewen Jenkins. I'll now ask Ian to second the resolutions. Seconded. Thank you very much. I'll put resolutions to the vote, and the votes are 95 in favor, 5% against.

22:27 So I declare those resolutions are carried, and we now move on to resolution number eight, which is an ordinary resolution. And this is to authorize the directors to be generally and unconditionally authorized, to exercise all or any of the powers of the company to allot and issue or grant rights to subscribe up to 390,609,439 shares plus any shares issued by the company pursuant to exercise of auctions and or warrants settled by employees, management, or other advisers as at the date of the resolution to such persons at such times and generally on such terms and conditions as the directors may determine, provided that the authority and the power granted by this resolution shall expire at the conclusion of the next annual meeting.

23:33 I'll now ask Guillaume to second this resolution. Seconded. And I'll now put the resolution to the vote and, in favor, 85%, and against 15%. So I declare the resolution carried. Resolution number nine, which is a special resolution requiring a 75% majority of votes cast, and this is subject to and conditional upon the passage of resolution four, which we've just resolved, and substitution for all existing and unexercised authorities and powers to authorize directors to be generally and unconditionally authorized to allot an issue of allotment shares and any excluded securities without first offering them to existing shareholders in proportion to their respective holdings of the shares provided this authority in power should be limited to the allotment and issuer of up to an aggregate amount of 390,000,390,000,000, sorry, 609,439 allotment shares plus excluded securities, the authority in power granted by this resolution shall expire as the conclusion of the next annual general meeting.

24:59 I'll now ask again to the second resolution. Seconded. And I'll put the resolution to the vote, and the vote in favor of the resolution is 81% and against 19%. This completes all the resolutions sent to you and closes the formal part of the meeting. Let me hand you over to Ian, to finally wrap up the annual general meeting. Thanks, Denham. Hopefully, everyone has had the opportunity to digest the information that's been given and the results of the various resolutions. I'd like to thank everyone for attending and make the comment that should you need any more information, then we have contacts allocated on the website.

25:54 Feel free to get ahold of us, and we'd be happy to try and deal with your questions in in a correct way. So thank you very much for attendance. And as a result, I think I'm able to close the meeting. Thank you. Fantastic. Thank you, Ian Denham, indeed, for updating attendees today. Could I please ask attendees not to close this session? It should be automatically redirected to provide your feedback. All of the team can better understand your views and expectations. It's only take a few moments to complete, and it'll be greatly valued by the company. On behalf of board of BRADDA HEAD LIMITED LIMITED, I'd like to thank you for attending today's AGM proceedings. Thank you, and good afternoon to you all. Thank you.