Pacific Lime’s Central Lime Project Advances on Schedule with A$54.6M Cash Backing

Steady Progress on Central Lime Project

Pacific Lime and Cement Limited (ASX – PLA, PNGX – PLC) has delivered a comprehensive update on its December 2025 quarter activities, highlighting significant advancements in its flagship Central Lime Project (CLP) located in Papua New Guinea's Central Province. Construction efforts accelerated during the quarter, with civil works, infrastructure development, and early kiln foundation activities progressing on schedule and within the approved budget. The project benefits from disciplined risk management and a growing local workforce, underpinning steady momentum as site activity intensifies.

Key infrastructure milestones include the advancement of a 27.6-kilometre access road connecting the project site to Port Moresby, with reinforced concrete culverts installed and modular steel bridges procured and delivered. Heavy plant mobilisation, including cranes and a concrete batch plant, supports ongoing piling and foundation works, while camp foundations have been completed ahead of modular building installations.

Government and Strategic Partnerships Cement Support

A pivotal development during the quarter was the formalisation of a Project Development Agreement (PDA) with the Government of Papua New Guinea. This legally binding agreement outlines fiscal, equity, and regulatory terms for the Central Lime and Central Cement Projects, including the PNG Government's right to acquire up to an 18% equity stake in each project vehicle. The PDA builds on prior community agreements and provides a robust framework for project implementation under PNG law.

Complementing government support, Pacific Lime and Cement secured a strategic advisory partnership with the International Finance Corporation (IFC), the private-sector arm of the World Bank. IFC will provide technical, commercial, and environmental, social, and governance (ESG) expertise to update the feasibility study for the Central Cement Project, enhancing its readiness for international financing.

Additionally, the company entered a development agreement with PowerChina to accelerate the Orokolo Bay Industrial Sands Project, focusing on magnetite production. PowerChina assumes responsibility for construction capital and operational costs, with a profit-sharing arrangement aligned to project milestones.

Market Development and Financial Position

On the commercial front, Pacific Lime and Cement initiated quicklime deliveries to Western Australian gold producers through a newly established logistics hub, opening a new trade pathway to a remote and growing mining region. Quality assurance measures and independent testing underpin customer confidence as the company explores further supply chain efficiencies across Australia and the Pacific.

Financially, the company maintains a solid cash position of A$54.6 million as of 31 December 2025, with disciplined cost control and no material adverse variances reported. Quarterly expenditure of approximately A$13 million primarily supported construction and development activities. The company also reported payments to related parties consistent with director remuneration.

Corporate Developments and Renewables Initiatives

Pacific Lime and Cement commenced trading on the Papua New Guinea Stock Exchange under the ticker "PLC," broadening access to local investors without altering its capital structure. Executive leadership was strengthened with the appointment of Kevin Savory as CEO – Cement, bringing over 30 years of industry experience to guide the cement project’s advancement.

The company’s renewables division progressed feasibility studies for solar photovoltaic and battery storage installations in PNG, supported by recent regulatory advances including the establishment of a national carbon market framework and renewable energy policies. These initiatives align with PLC’s broader commitment to sustainable development and decarbonisation in the region.

Beyond its core projects, PLC holds a significant interest in Adyton Resources Corporation, which continues exploration and resource expansion activities in PNG, further diversifying PLC’s portfolio.