LE Minerals finished FY2026 with an A$48.2 million statutory profit, but the result was driven by a one-off A$58.1 million after-tax gain from selling its Solaroz lithium project interest. The company ended the year with A$60.2 million in cash and term deposits as it reshapes its portfolio around Queensland and Utah exploration assets.
- A$48.2 million FY2026 statutory profit, versus a A$6.1 million loss
- A$58.1 million after-tax gain from Solaroz disposal
- A$60.2 million held in cash and term deposits at year-end
- Proposed graphite sale remains conditional on MBM IPO and approvals
- 18 million executive options issued at a $0.60 exercise price
Solaroz disposal drives the headline profit
LE Minerals Limited (ASX:LEL) booked an A$48.17 million profit for the year ended 30 June 2026, turning around an A$6.12 million loss a year earlier. The impressive headline, however, came overwhelmingly from the completed sale of the company’s 90% interest in the Solaroz Lithium Brine Project in Argentina, which generated an A$58.14 million after-tax gain.
Continuing operations remained firmly in the red, recording an A$9.21 million after-tax loss. Income from continuing operations rose to A$2.20 million, largely reflecting A$1.95 million of interest income, but total expenses climbed to A$11.41 million. Share-based payments accounted for A$4.83 million of that expense.
Balance sheet strengthened by sale proceeds
The Solaroz transaction left LE Minerals with A$12.68 million in cash and A$47.5 million in term deposits at year-end, for total cash and term deposits of A$60.18 million. Net assets increased to A$75.67 million from A$23.37 million, while liabilities fell sharply to A$2.64 million from A$55.04 million as sale-related balances were removed following completion of the second tranche.
The company still faces near-term corporate and exploration spending. Operating activities consumed A$5.87 million during the year, while investing activities used A$23.05 million, including A$6.27 million on exploration and evaluation, A$2 million for Mt Dromedary and A$1.58 million for the Capricorn project. No dividend was declared or paid.
Graphite transaction shifts toward a conditional spin-out
LE Minerals is seeking to sell its Burke, Mt Dromedary and Corella graphite projects to M Battery Materials for total consideration of A$20 million. Following ASX advice on promoter and classified-asset rules, the proposed cash component now sits between A$2 million and A$5 million, with the balance to be paid in MBM shares. The total stated consideration has not changed.
The transaction remains subject to conditions including the proposed MBM IPO and shareholder approval. The MBM shares are expected to carry escrow restrictions, and LE Minerals says it will seek approval to distribute 75% of those shares in specie to eligible shareholders after the relevant 24-month escrow period. Until the sale completes, the graphite assets remain part of LE Minerals’ portfolio.
Exploration portfolio still at an early stage
At Capricorn in Queensland, LE Minerals holds a 51% interest and has the right to acquire the remaining 49% by April 2027. Drilling and geophysical work was completed at the Bajool and Sandy Creek prospects, but the report says no significant assay results were returned from the first-pass drilling programs described. The company has also completed the minimum A$4 million exploration expenditure required under the first tranche of the acquisition.
At White Plains in Utah, the company holds approximately 5,769 hectares of mineral claims and exploration rights over a further 2,340 hectares of state-managed leases. Work included magnetotelluric surveys, auger sampling and a 10-hole direct-push drilling program targeting the upper aquifer. LE Minerals also relinquished 51 claims in September 2026, indicating that the project footprint is being refined as exploration progresses.
Executive options add a capital allocation question
The board issued 18 million unlisted executive options to William Johnson, Farooq Khan and Victor Ho, with an exercise price of $0.60 and expiry on 28 May 2030. Each received 6 million options after shareholder approval. The options were valued at A$4.83 million for accounting purposes and represented the largest single expense in the company’s share-based payments line.
LE Minerals was reinstated to ASX quotation in March after its suspension related to the Solaroz sale, and changed its name from Lithium Energy in May. The next phase is less about recognising past transaction value and more about converting the remaining cash into exploration progress, completing the graphite restructuring and determining whether the Capricorn and White Plains projects can justify further expenditure.
Bottom Line?
The Solaroz cash has given LE Minerals financial room, but the investment case now depends on execution: the graphite sale must close, exploration must produce stronger evidence of value, and recurring operations must eventually narrow the gap between interest income and annual costs.
Questions in the middle?
- Will MBM complete its proposed IPO and satisfy the conditions required for the A$20 million graphite transaction?
- Can Capricorn and White Plains deliver resource-quality results before the company’s cash balance is materially drawn down?
- Will LE Minerals return surplus capital after its project review, or redirect the funds into new acquisitions and exploration?