QPM Advances Isaac Power Station with $114m Turbine Deal and Strong Financing

Isaac Power Station Development Gains Momentum

QPM Energy Limited (ASX – QPM) has reported significant progress in the December 2025 quarter towards the development of its 112MW Isaac Power Station (IPS) in Queensland. The company issued a Full Notice to Proceed to GE Vernova for the supply of two LM6000 aeroderivative gas turbines, a critical step in the project’s construction phase. This milestone was supported by a $113.7 million Master Lease Agreement with Macquarie Bank, securing full funding for the turbine purchase.

Complementing this, QPM advanced its financing strategy with the Northern Australia Infrastructure Facility (NAIF) process underway to supplement the Macquarie facility, targeting a total project finance package of approximately $180 million. Additionally, a $40 million non-binding convertible note term sheet was signed with a strategic investor, who also participated in a $30.3 million equity placement to fund development activities and long lead item procurement ahead of the final investment decision (FID).

Operational Performance and Market Conditions

On the operational front, QPM maintained stable gas supply levels during the quarter, with managed production increasing slightly to a daily record of 23.1 terajoules in December. However, this was offset by a reduction in third-party gas supply, resulting in an overall flat total supply compared to the previous quarter. Electricity generation at QPM’s Moranbah Gas Project (MGP) declined, reflecting weak wholesale electricity prices driven by seasonal spring weather, high coal-fired generation availability, and the commissioning of new grid-scale battery energy storage systems (BESS) and wind farms.

In response to subdued electricity prices, QPM strategically diverted gas to storage, positioning itself to capitalise on anticipated stronger prices in the March 2026 quarter. The company also progressed its field development program, planning a new well drilling campaign in 2026 to support IPS commissioning targeted for mid-2027.

Regulatory and Infrastructure Milestones

QPM achieved a key regulatory milestone with the lodgement of a Material Change of Use Development Approval (MCUDA) application for the IPS. The public notification process concluded without objections, paving the way for approval expected in the March 2026 quarter. Furthermore, the company finalised terms and executed a Connection Project Delivery Agreement (CPDA) with Powerlink, securing the grid connection to the Moranbah Substation. This agreement includes a 30-year term and aligns with QPM’s feasibility study assumptions, marking a critical condition precedent for project financing completion.

Financial Position and Outlook

QPM’s cash and equivalents rose to $31.7 million by quarter-end, supported by the equity placement and drawdowns on financing facilities. The Dyno Nobel Development Funding Facility was drawn to $40.2 million to support upstream capital expenditure, including well head blower installations. Total capital expenditure on upstream gas production and IPS development reached $18.8 million for the quarter.

Looking ahead, QPM’s financing framework appears robust, with $146.9 million in unused financing facilities available alongside cash reserves, providing a runway of over 40 quarters based on current cash outflows. The company’s TECH Project also advanced with successful high acid concentration leach testwork, unlocking a $2 million milestone payment under a state government funding facility.