Legal Dispute and Market Challenges Cloud QEM’s Julia Creek Prospects

Strategic Review and Capital Management

QEM Limited (ASX – QEM) has provided its quarterly update for the period ending 31 December 2025, highlighting a strategic review of its flagship Julia Creek Vanadium and Energy Project (JCVEP) in Northwest Queensland. This review, initiated in September 2025 and expected to conclude by the end of Q1 2026, aims to preserve capital amid a challenging vanadium price environment and uncertain global market outlook. The company has slowed development activities and reduced expenditure accordingly, while exploring broader corporate opportunities to enhance shareholder value.

Environmental Progress and Regulatory Compliance

Despite the cautious approach to development, QEM continues to advance critical environmental baseline studies necessary for the Environmental Impact Statement (EIS), a key regulatory milestone for project approval. The company completed its fourth round of groundwater and surface water monitoring in November 2025, with further surveys planned for February 2026. These efforts underscore QEM’s commitment to a robust Environmental, Social, and Governance (ESG) framework, aligned with the World Economic Forum’s Stakeholder Capitalism Metrics.

Resource Potential and Drilling Assays Pending

The JCVEP remains one of the world’s largest undeveloped vanadium and oil shale deposits, boasting a JORC-compliant mineral resource of 2.87 billion tonnes at 0.31% vanadium pentoxide. Additionally, the project holds a significant contingent in-situ oil resource estimated at hundreds of millions of barrels of oil equivalent. Following a drilling campaign completed in September 2025, assay results are awaited, expected in January 2026, which will provide further clarity on resource quality and project viability.

Financial Position and Legal Proceedings

QEM reported exploration expenditure of $532,000 for the quarter and ended with cash reserves of approximately $1.08 million. The company is actively managing its cash flow, having reduced overheads and deferred non-essential spending. Notably, QEM has initiated legal proceedings to recover $241,500 from unsettled placement commitments linked to investors associated with Shaun Cartwright and Anadara. The outcome of this dispute could impact the company’s near-term funding position.

Community Engagement and ESG Commitment

QEM maintains a strong presence in the Julia Creek community, sponsoring local events such as the Julia Creek Beach Races and preparing for the upcoming Dirt N Dust Festival. The company’s ESG reporting adheres to internationally recognised standards, reflecting ongoing stakeholder engagement and environmental stewardship. This approach aims to balance project development with social responsibility and sustainable practices.