• ChemX Materials Limited reported a loss of $1,911,696 after income tax for the period ended December 31, 2023, compared to a loss of $2,449,542 for the same period in the previous year.
• The company reported a maiden JORC Manganese Resource of 13.7mt at 5.7 Mn%.
• The HPA Micro Plant achieved targeted purity levels of 99.99% HPA.
• The larger scale HPA Pilot Plant was under construction during the reporting period.
• Operating cash outflows improved slightly to $1,182,016 from $1,277,451 due to government R&D grants of $919,600.
• The company's cash balance at the end of the reporting period was $1,229,526.
• A $6,000,000 unsecured convertible note funding facility with Mercer Street Global Opportunity Fund, LLC was announced on August 4, 2023.
• $500,000 (Tranche 1) and $1,700,000 (Tranche 2) were drawn from the convertible note facility.
• 2,500,000 Deferred Consideration Shares will be issued upon the commissioning of the HiPurA Pilot Plant.

Score: 5

Explanation: The sentiment is neutral. While the company is making progress on its projects and has secured funding, it is still operating at a loss and faces challenges in securing additional funding to continue as a going concern.

• ChemX Materials Limited reported a loss of $1,911,696 for the half-year ended December 31, 2023.
• The company reported a maiden JORC Manganese Resource of 13.7mt at 5.7 Mn%.
• The HPA Micro Plant achieved targeted purity levels of 99.99% HPA.
• Operating cash outflows improved slightly to $1,182,016 due to government R&D grants of $919,600.
• The company's cash balance at the end of the reporting period was $1,229,526.
• A $6,000,000 unsecured convertible note funding facility was established with Mercer Street Global Opportunity Fund, LLC.
• 2,500,000 Deferred Consideration Shares will be issued upon the commissioning of the HiPurA Pilot Plant.

• The company achieved targeted purity levels of 99.99% HPA in its HPA Micro Plant.
• Operating cash outflows improved slightly, driven by government R&D grants.
• The company secured a $6,000,000 convertible note funding facility to advance its projects.
• The company reported a maiden JORC Manganese Resource of 13.7mt at 5.7 Mn%.

• The company reported a net loss of $1,911,696 for the half-year ended December 31, 2023.
• The Group incurred operating cash outflows of $1,182,016 for the half-year ended 31 December 2023.
• The Group has net current liabilities of $338,216.

• The company's ability to continue as a going concern is dependent on securing additional funding.
• The company's net current liabilities of $338,216 indicate potential short-term financial challenges.
• The company is subject to risks associated with exploration and evaluation activities, including potential write-offs of capitalised costs.

The company intends to use the convertible note funding facility to maintain momentum and advance the Eyre Peninsula High purity Alumina and HiPurA HPA Project in Perth, Western Australia.

• The lower corporate expenses reflect management decisions to reduce the use of consultants and appoint roles internally including the replacement of the previous CEO with former Chief Operating Officer, Mr Peter Lee.

The company is operating in the high purity alumina and manganese sectors, which are driven by demand from the battery, electric vehicle, and technology industries.

• The company's HPA Micro Plant achieved purity levels of 99.99%, which is a standard benchmark for high-quality HPA used in various high-tech applications.
• Comparable companies in the HPA sector include Altech Chemicals and Alpha HPA, which are also focused on developing high-purity alumina production capabilities.
• The maiden JORC Manganese Resource of 13.7mt at 5.7 Mn% is a relatively small resource compared to larger manganese miners like South32 or Eramet, but it represents a starting point for potential future development.

• Shareholders: The net loss may negatively impact shareholder value, but progress on projects and securing funding are positive signs.
• Employees: The company's cost-cutting measures, including internal appointments, may impact employee roles and responsibilities.
• Customers: Progress on the HPA project could lead to future supply agreements and partnerships.
• Creditors: The convertible note facility provides funding but also increases the company's debt obligations.

• Commissioning the HiPurA Pilot Plant, which will trigger the issuance of 2,500,000 Deferred Consideration Shares.
• Continuing the internal scoping study on the maiden JORC Manganese Resource.
• Advancing the Eyre Peninsula High purity Alumina and HiPurA HPA Project in Perth, Western Australia.

• 31 December 2021: Completion of the acquisition of HiPurA Pty Ltd
• 30 June 2022: As at this date, the number of Deferred Consideration Shares pending issue was 4,500,000 at a fair value of $0.20 per share totalling $900,000 which was credited to the share based payments reserve.
• 1 September 2022: The Company issued 2,000,000 Deferred Consideration Shares upon completion of the Flow Sheet Design milestone.
• 4 August 2023: The Company announced a $6,000,000 unsecured convertible note funding facility with Mercer Street Global Opportunity Fund, LLC.
• 14 August 2023: Tranche 1 convertible notes were issued.
• 26 September 2023: Shareholder approval was granted for Tranche 2 of the convertible note funding facility.
• 9 October 2023: Tranche 2 convertible notes were issued and options expire three years after this date.
• 26 October 2023: Tara Berrie resigned as Non-Executive Director.
• 31 December 2023: End of the reporting period.
• 13 March 2024: Date of Directors' report and authorisation of financial statements for issue.