Can Greenwing Navigate Regulatory and Market Risks to Unlock Value Across Three Continents?

Advancing Que River – A Low-Cost Pathway to Production

Greenwing Resources Ltd (ASX – GW1) has made significant strides at its Que River polymetallic project in Tasmania, delivering a positive scoping study that outlines a low-capital expenditure route to early cash flow. The study highlights the potential to mine and process approximately 665,000 tonnes of ore with a net smelter revenue of around A$189 per tonne, projecting conceptual undiscounted cash flows of about A$63 million from metal revenues exceeding A$125 million within less than a year of production. This positions Que River as a compelling near-term development opportunity leveraging existing infrastructure and regional processing facilities.

The project’s polymetallic nature, with zinc, lead, copper, gold, and silver, benefits from rising metal prices and improved processing technologies. Greenwing is progressing permitting and mine planning activities, including finalising its Decommissioning and Rehabilitation Plan as part of lease renewal efforts. The company is also evaluating toll treatment options to optimise operational costs and maximise shareholder value.

Madagascar Assets – Monetisation and Strategic Positioning

In Madagascar, Greenwing continues to execute a strategy of monetising surplus equipment and spares from its Graphmada Graphite Mining Complex and Millie’s Reward lithium project. The recent quarter saw approximately A$150,000 in proceeds from equipment sales, with further disposals anticipated to bolster cash reserves. The Graphmada complex, with a substantial mineral resource of 61.9 million tonnes at 4.5% fixed carbon, remains on care and maintenance but is well positioned to benefit from global efforts to diversify graphite supply chains away from China.

Encouragingly, recent policy measures by the U.S. Department of Commerce and Trade aimed at reducing reliance on single-source graphite supply have sparked strategic discussions between Greenwing, government agencies, and potential partners. The company’s established infrastructure, long-life mining leases, and proven export record to key markets including the U.S. and EU enhance its appeal as a critical minerals supplier.

San Jorge Lithium Project – Resource Growth and Exploration Outlook

Greenwing’s San Jorge lithium project in Argentina maintains a robust resource base, with a maiden resource estimate of 1.07 million tonnes of lithium carbonate equivalent declared in May 2024. Subsequent geophysical surveys have confirmed extensive lithium-bearing brines extending beyond the visible salar, suggesting significant upside potential. While field activity was limited during the quarter due to cost discipline, the company plans to engage with local government and partners in November to discuss development strategies and potential collaborations.

San Jorge’s brine is highly amenable to direct lithium extraction processing, positioning it as a strategic and scalable asset aligned with evolving extraction technologies and a strengthening lithium market outlook.

Corporate and Financial Position

During the quarter, Greenwing completed a tranche of its equity raising, issuing shares worth A$2.41 million, following an earlier issuance of A$1.46 million. The company reported net cash outflows of A$461,000 for the quarter, supported by available funding including an unsecured loan facility and an undrawn A$8 million at-the-market equity facility. Leadership changes included the resignation of non-executive chairman Rick Anthon and the appointment of James Brown, an experienced mining executive with a strong background in lithium and battery materials projects.

Greenwing’s disciplined capital management and strategic asset portfolio across Tasmania, Madagascar, and Argentina position it to navigate the evolving critical minerals landscape while advancing projects toward value realisation.