South Star Announces Q3 2025 Financial and Operating Results

Core Viewpoint - South Star Battery Metals Corp. has made significant progress in addressing operational issues at its Santa Cruz Graphite Mine, with a successful funding round of US$4.8 million to support plant upgrades and plans to restart production in 2026, indicating a new phase of growth for the company [1][9]. Corporate Highlights During the Quarter - The company appointed Tiago Cunha as Interim CEO, Darren Prins as CFO, and Rogerio Barcellos as General Manager [9]. - A successful private placement raised US$4.8 million, providing sufficient cash to sustain operations through 2026 [9]. - A non-binding term sheet for a US$4 million loan facility with Sprott Streaming was announced, aimed at supporting the strategic plan for the Santa Cruz Graphite Mine [9]. Operations Update - Two critical pieces of equipment for the plant restart have been purchased, with improved delivery timelines; the scrubber's lead time was reduced from 180 days to 90 days at no additional cost [3]. - The company completed additional initiatives under the restructuring plan at no cost, showcasing a cultural transformation and improved productivity [3]. - Installation and commissioning of new equipment are expected to be completed in 2026, allowing for stable production and an anticipated annual output of 5,000 tonnes by mid-2026, with plans to expand capacity to 10,000 tonnes by year-end 2026 [6]. Financial Performance - For the three months ended September 30, 2025, the company reported a loss of $823,278, an improvement from a loss of $1,289,812 in the same period of 2024 [8]. - Loss per share decreased from $0.03 in 2024 to $0.02 in 2025 for the three-month period [8]. - Cash and cash equivalents (excluding the recent raise) stood at $16,010, while total assets increased to $21,128,878 from $20,205,794 in December 2024 [10]. Cost Structure Review - A comprehensive review of the cost structure led to significant savings through contract renegotiations and process optimization, with expected reductions of approximately 60-65% compared to historical costs [4].