Lifezone Metals Reports First Half of 2026 Results, Advances Kabanga Financing & Procurement

• Cash balance rose to $37.3 million as of June 30, 2026, up from $20.1 million as of December 31, 2025, supported by a $25 million registered direct offering and drawdowns under the senior secured bridge loan facility.
• Revenue for the First Half of 2026 reached $1.7 million, compared with $0.3 million in the First Half of 2025, driven by increased third-party technical and laboratory services at Simulus Laboratories.
• Lifezone Metals released contracts worth approximately $854 million to market for the Kabanga Nickel Project, including tenders for Engineering, Procurement, and Construction Management (EPCM), mining, and bulk earthworks.
• Negotiations to amend the Framework Agreement with the Government of Tanzania have progressed more slowly than expected, pushing the expected Final Investment Decision (FID) for the Kabanga Nickel Project to the First Quarter of 2027.
• The Platinum Group Metal (PGM) Recycling Project completed a pilot-scale test campaign, demonstrating more than 99% recovery of platinum and palladium, with a target of more than 95% rhodium recovery.

Company Overview

Lifezone Metals (NYSE: LZM) is focused on delivering cleaner and more responsible metals production and recycling through its proprietary Hydromet Technology, which the company states offers the potential for lower energy consumption, lower emissions, and lower-cost metals production compared to traditional smelting. Its flagship Kabanga Nickel Project in Tanzania is being developed alongside this technology to unlock a new source of nickel, copper, and cobalt for global battery metals markets while supporting in-country beneficiation for Tanzania. Through a US-based recycling partnership, the company is also applying the same technology to recover platinum, palladium, and rhodium from responsibly sourced spent automotive catalytic converters, supporting a circular economy for precious metals.

Financial Highlights

Lifezone Metals reported a cash balance of $37.3 million as of June 30, 2026, compared to $20.1 million as of December 31, 2025. Including the undrawn balance of the senior secured bridge loan facility, total liquidity stood at $55.6 million as of June 30, 2026, compared to $60.1 million as of December 31, 2025.

Cash usage from investing activities during the First Half of 2026 amounted to $15.0 million, with $15.4 million invested in the Kabanga Nickel Project. As of June 30, 2026, $41.7 million had been drawn from the senior secured bridge loan facility, of which $21.7 million was received during the First Half of 2026, with a further $18.3 million available until November 29, 2026, to progress pre-final investment decision (FID) activities, early works, development activities, and the project financing workstream. Revenue for the First Half of 2026 was $1.7 million, compared to $0.3 million during the First Half of 2025, driven by increased third-party technical and laboratory services at Simulus Laboratories.

Lifezone Metals reported a basic and diluted loss per share of $0.08 for the First Half of 2026, based on a net loss of $6.9 million attributable to shareholders, including non-cash fair value gains of $7.9 million related to the remeasurement of certain financial instruments, among them a $1.5 million gain on embedded derivatives, a $1.1 million gain on warrant liabilities, and a $5.3 million gain on deferred consideration owed to BHP, largely attributable to a decline in Lifezone Metals' share price from $4.27 to $3.88 over the period. General and administrative expenses were $10.8 million, compared to $8.0 million in the First Half of 2025, primarily due to non-cash share-based payment charges of $3.1 million. On April 23, 2026, Lifezone Metals closed a $25 million registered direct offering at $4.40 per share for net proceeds of $23.3 million, and on June 29, 2026, issued additional warrants on the bridge loan facility for up to 500,000 ordinary shares at an exercise price of $6.25 per share and were fair valued at $1.08 million.

Kabanga Nickel Project: Project Financing & Government Negotiations

Negotiations to amend the Framework Agreement continued with senior members of the Tanzanian government, including a meeting held on June 9, 2026, with H.E. President of Tanzania Dr Samia Suluhu Hassan, attended by Lifezone Metals' Chairman, Keith Liddell, TNCL Chief Executive Officer Benedict Busunzu, the Minister of Minerals Hon. Anthony Peter Mavunde (MP), and Tanzanian Treasury Registrar Nehemiah Mchechu.

These negotiations have progressed more slowly than expected, and the delays have affected the FID timeline. Lifezone Metals now expects FID to take place during the First Quarter of 2027, noting that all parties have invested significant resources in finding a solution and that the discussions reinforced the Kabanga Nickel Project's status as a Tanzanian, US-linked project of national importance. With concerted efforts, the company states this date could move forward, but FID could also occur later, depending on the lender's assessment of the amended Framework Agreement.

During the early part of the First Half of 2026, the US Development Finance Corporation completed its due diligence on the political risk insurance workstream, while negotiations advanced for a potential strategic equity investment into the project, led by Standard Chartered Bank, with multiple offers received. The project financing process led by Societe Generale continued to progress well, with key pathfinders, comprising Development Finance Institutions and Export Credit Agencies from Africa, Europe, and North America, selected and providing indications of liquidity. Lender due diligence materials are well advanced to launch the final structuring phase of the funding process, international insurance brokers have been appointed to advance a global insurance roadshow, and an application has been filed with the European Commission for the Kabanga Nickel Project to be registered as a Strategic Project under the Critical Raw Materials Act.

Chief Executive Officer of Lifezone Metals, Chris Showalter, addressing the Tanzania relationship, procurement progress, and the company's broader project pipeline, commented:

“Our relationship with the Government of Tanzania remains central to the Kabanga Nickel Project, and we continued working through the Framework Agreement amendment, including direct engagement with H.E. President Samia Suluhu Hassan. At the same time, we moved Kabanga into procurement at scale, releasing roughly $854 million in contracts to market, with pre-FID activities funded by the $21.7 million drawn under the Taurus facility and $25 million equity raise.”

Showalter added:

“We also opened a new frontier with the Musongati exclusivity agreement in Burundi, and reached a pilot-scale milestone in our PGM Recycling Project, recovering >99% platinum and palladium and targeting >95% rhodium from spent Autocat material.”

Technical & Operational Progress

Procurement activities and contract readiness advanced materially, with 59 Expressions of Interest for significant packages approved by the Mining Commission and contracts worth approximately $854 million, including EPCM, mining, and bulk earthworks tenders, released to market with strong participation from international and Tanzanian contractors. Lifezone Metals also scaled up the Kabanga Nickel Project Integrated Owner's Team to support project execution and detailed engineering and procurement, with all technical, commercial, and project setup deliverables tracked through a pre-FID schedule with S-curve reporting, and a preferred cost management platform selected.

Beyond the Special Mining License, all material permits needed for current activities are in place. Key permits obtained across the First and Second Quarters of 2026 include the Chemical Registration Certificate, Landfill Permit, Kabanga Environmental and Social Management Plan (ESMP) Update, Sewage Treatment Plan Permit, and the Environmental Impact Assessment (EIA) for construction of the 220 kilovolt (kV) transmission line, with the Biodiversity Action Plan (BAP) well advanced ahead of early works.

Pre-FID site investigations advanced, including geotechnical drilling, with 194 of 237 test pits completed and 3,300 of 3,743 metres of drilling undertaken, and vent raise drilling now complete across the project footprint. Borefield and Tailings Storage Facility (TSF) investigations continued, with the final integrated water balance targeted for the Third Quarter of 2026, alongside continued progress on the 220kV overhead line, Southern Access Road hydrology assessments, camp upgrades, and completion of the product marketing study supporting in-country beneficiation planning.

Health, Safety, Environment & Social Performance

Zero material health, safety, environmental, or security incidents were reported, with more than 2.9 million hours worked without a lost time injury at the Kabanga Nickel Project. The Ebola outbreak in the Democratic Republic of Congo and Uganda, declared a public health emergency of international concern on May 17, 2026, continues to pose a cross-border risk, though there are no reported cases in Tanzania, and the project has response protocols in place.

The project began recruiting critical roles required ahead of FID, with 209 employees and contractors directly engaged by the Kabanga Nickel Project as of the end of June 2026. On the Resettlement Action Plan, 100% of cash compensation payments were made by the company by the end of 2025, and 97% of project-affected households have signed their cash compensation agreements and received the monies, with the remainder held in escrow for the benefit of the remaining households.

Community stakeholder engagement remained a primary focus, including regular community meetings and expanded Community Liaison Offices. A Memorandum of Understanding (MOU) for the 2025/2026 Corporate Social Responsibility plan with the Ngara District Council was signed, covering health, education, sports, and agricultural initiatives. An ISO-compliant Life Cycle Assessment for the Kabanga Nickel Project was completed, confirming a low climate change emission impact for nickel concentrate production, with a separate release planned for the Third Quarter of 2026.

Musongati Nickel Project

Since March 10, 2026, when Lifezone Metals entered into a 14-month exclusivity agreement with the Government of Burundi regarding the Musongati Nickel Project, senior meetings were held between Lifezone Metals' geologists and the Office Burundais des Mines et Carrières (OBM) and the Government of Burundi. Lifezone Metals reviewed Musongati drilling data, maps, and earlier studies, and conducted technical due diligence, including site visits to Bujumbura and the Musongati Project Area.

Engagements with former project owners and consultants took place to support the re-establishment of the previous mineral resource, last estimated in 2011, in preparation for a proposed laterite drilling program. A preliminary laterite infill drilling program is currently being developed for the Buhinda and Rubara deposits, along with the associated implementation approach, cost estimate, and schedule.

PGM Recycling Project

The First Half of 2026 saw completion of the PGM Recycling Project's batch locked-cycle and pilot test campaign, involving 1 tonne of US-sourced Autocat material, with Lifezone Metals demonstrating recovery of more than 99% platinum and palladium, and targeting a recovery of more than 95% for rhodium. An interim study report was completed following the pilot test program.

An internal project review undertaken late in the First Half of 2026 resulted in several substantive techno-economic improvements, which are now being incorporated into the plant design and updates to the feasibility study, targeting completion by year-end. US site selection work continues, with several potential brownfield locations identified for the commercial facility. Through the remainder of the year, an enhanced value-adding test campaign will run in parallel with ongoing commercial plant design and execution workstreams, with project FID now anticipated in early 2027.

Lifezone Metals' 2 non-duplicate US Department of Energy (DOE) funding requests, totalling US$41.5 million and made in the First Quarter of 2026 with a private cost share of 20%, remain under review.

Simulus Laboratories

Simulus Laboratories continued pilot test work and advanced the engineering study for the PGM Recycling Project, successfully producing high-purity platinum, palladium, and rhodium intermediates from spent Autocat material. Simulus generated $1.67 million in revenue in the First Half of 2026, a significant increase from the comparable period last year, and was awarded services under 30 different contracts by 15 different clients across a broad range of commodities, including copper, gold, and nickel.

The main new area of activity in the Second Quarter of 2026 was copper and gold consulting, including due diligence and independent technical reviews, driven by strong demand from mergers and acquisitions and stock exchange listings within the industry. Business development remained a significant focus, with numerous testwork and feasibility study proposals issued across a range of commodities, alongside continued occupational health and safety enhancements, including updates to Simulus' Naturally Occurring Radioactive Material (NORM) Radiation Management Plan.

Next Steps

Looking ahead, Lifezone Metals has outlined several near-term milestones and catalysts:

• FID for the Kabanga Nickel Project is now expected in the First Quarter of 2027, with the timeline dependent on the outcome of negotiations on the Framework Agreement amendment and lender assessment.
• The final integrated water balance and separate release detailing the ISO-compliant Life Cycle Assessment for the Kabanga Nickel Project is targeted for completion in the Third Quarter of 2026.
• The PGM Recycling Project's feasibility study update, incorporating recent techno-economic improvements, is targeting completion by year-end, with FID for that project anticipated in early 2027.
• Lifezone Metals' 2 US Department of Energy funding requests, totalling US$41.5 million, remain under review.

FAQs (AI-Generated)