Lifezone Metals Reports Q1 2026 Results, Advances Kabanga Financing & Signs Musongati Exclusivity Agreement

• Revenue reached $1.2 million in the first quarter of 2026, up from $0.2 million in the first quarter of 2025, driven by third-party technical and laboratory services at Simulus.
• Four parallel financing workstreams advanced during the quarter, with $25 million drawn under the $60 million Taurus Mining Finance bridge facility as of March 2026, and the US Development Finance Corporation (DFC) due diligence completed.
• Contracts valued at approximately $380 million were released to market at Kabanga, with 52 critical path Expressions of Interest approved by the Mining Commission.
• A 14-month exclusivity agreement with the Government of Burundi was signed in March 2026, granting Lifezone the right to evaluate the Musongati nickel laterite deposit in the East African Nickel Belt.
• Pilot testwork on one ton of US-sourced autocatalyst material demonstrated recovery of up to 99% platinum and palladium and 95% rhodium; two non-duplicative US Department of Energy (DOE) funding applications carrying a combined federal request of $41.5 million were submitted in January 2026.

Lifezone Metals (NYSE: LZM) is a metals production and recycling company focused on the development of the Kabanga Nickel Project in Tanzania, the Musongati Nickel Project in Burundi, and a platinum group metal recycling programme in the US. Simulus Laboratories, a wholly owned subsidiary, provides third-party metallurgical and engineering services and supports the company's internal project development programmes.

First-Quarter 2026 Financial Results

Chief Financial Officer of Lifezone Metals, Ingo Hofmaier, described the quarter as a period of execution across three parallel fronts:

"The first quarter of 2026 was another period of disciplined execution as we advanced the Kabanga Nickel Project, opened up new avenues with the Musongati Nickel Project Exclusivity Agreement, and produced our first-ever Platinum, Palladium, and Rhodium from the US PGM Recycling Project from pilot testwork at Simulus, while maintaining focus on capital efficiency, liquidity, and long-term value creation."

Revenue for the first quarter of 2026 was $1.2 million, compared with $0.2 million for the first quarter of 2025. The increase was driven by third-party technical and laboratory services at Simulus. Income before tax for the quarter was $2.4 million, compared with $7.3 million for the same period in 2025. The 2026 first quarter figure included non-cash fair value gains of $3.9 million on deferred consideration to BHP, $2.9 million on warrant liabilities, and $1.9 million on embedded derivatives in convertible debentures.

Cash and cash equivalents stood at $15.3 million as of March 2026, compared with $20.1 million as of December 2025. Cash usage from investing activities during the quarter was $6.2 million, with $6.3 million invested in the Kabanga Nickel Project.

In April 2026, the company closed a registered direct offering of 5.7 million ordinary shares at $4.40 per share, generating gross proceeds of $25 million and net proceeds of $23.3 million.

Hofmaier addressed the post-quarter capital raise and its intended use:

"Also in April, we further strengthened our cash position by closing a registered direct offering that raised $25.0 million in gross proceeds. These funds will help us to position the business for the next stage of growth while remaining mindful of market conditions and disciplined capital allocation."

Project Financing Workstreams

Four parallel financing workstreams advanced during the first quarter of 2026. Under the $60 million senior secured bridge loan facility with Taurus Mining Finance, $25 million had been drawn as of March 2026. A second utilisation of $5 million was drawn during the same period, with the remaining $16.7 million under that utilisation received in April 2026. As of the post-quarter update, $18.3 million remained undrawn under the Taurus facility.

The US Development Finance Corporation (DFC) completed its due diligence during the quarter, with further DFC funding workstreams described as progressing. Strategic investment negotiations for the Kabanga Nickel Project, led by Standard Chartered Bank, resulted in multiple offers. The project financing process led by Société Générale continued during the quarter, including roadshows and the selection of pathfinders. Several long-term concentrate off-take negotiations were described as well advanced.

Kabanga Nickel Project: Technical & Operational Progress

Geotechnical investigations at Kabanga during the first quarter of 2026 included the completion of 163 test pits, boreholes for the North and Tembo boxcuts and waste rock dumps, and all geotechnical holes for eight ventilation raises. Potable water borehole drilling commenced during the quarter. A dual-train milling technical note was completed, and value engineering continued to support Front End Engineering and Design (FEED). Progress also continued on the 220-kilovolt Tanzania National Electricity Supply Company (TANESCO) and related permitting workstreams, with all material permits required for current activities in place, including the water use and abstraction permit and the Special Mining Licence.

On procurement and contracting readiness, 52 critical path Expressions of Interest were approved by the Mining Commission, and 45 were released to market. Contracts valued at approximately $380 million were released to market during the quarter. A Project Execution Plan and associated plans were developed. Negotiations with senior members of the Tanzanian government and administration advanced constructively on amendments to the Framework Agreement, details of the staging concept, and the joint financial model.

A product marketing study for in-country beneficiation was completed, and a techno-economic trade-off model framework was initiated. An International Organization for Standardization (ISO)-compliant Life Cycle Assessment for the Kabanga Nickel Project was completed, with a separate release planned for the second quarter of 2026. No health, safety, environmental, or security incidents were reported during the quarter, with the project recording more than 2.7 million hours worked without a lost-time injury.

Musongati Nickel Project: Exclusivity Agreement

In March 2026, Lifezone Metals signed an exclusivity agreement with the Government of Burundi covering the Musongati nickel laterite deposit. The agreement grants Lifezone a 14-month exclusivity period to evaluate the technical and economic potential of the Musongati deposit, including an initial scoping phase during which the company will review existing geological data and develop a longer-term exploration and feasibility assessment programme.

Musongati is classified as a large nickel laterite deposit located within the East African Nickel Belt, approximately 200 km southwest of the Kabanga Nickel Project in Tanzania.

PGM Recycling Project: Pilot Results & Funding Applications

A batch-locked-cycle and pilot test campaign using one ton of US-sourced autocatalyst (Autocat) material was completed at Simulus. The pilot testwork demonstrated platinum recovery of up to 99%, palladium recovery of up to 99%, and rhodium recovery of 95%. An engineering design and feasibility study for the platinum group metal (PGM) recycling project was nearing completion as of the reporting date.

In January 2026, Lifezone Recycling US, LLC submitted two distinct and non-duplicative applications to the US Department of Energy (DOE). The combined federal funding request across both applications was $41.5 million, with a private cost share of $24 million.

Simulus Laboratories

Simulus Laboratories shifted its operational focus in the first quarter of 2026 toward third-party technical work, generating $1.2 million in external sales. Simulus also continued pilot testwork and progressed the engineering study for the PGM Recycling Project during the quarter.

Next Steps

Lifezone Metals has identified the following pending workstreams and upcoming catalysts. Under the Taurus facility, $18.3 million remains undrawn. Further DFC funding workstreams are progressing following the completion of due diligence. Strategic investment negotiations led by Standard Chartered Bank are ongoing, with multiple offers under consideration. The Société Générale-led project financing process is continuing, and long-term concentrate off-take negotiations are described as well advanced.

A separate release covering the completed ISO-compliant Life Cycle Assessment for the Kabanga Nickel Project is planned for the second quarter of 2026. The engineering design and feasibility study for the PGM Recycling Project is nearing completion, and the outcomes of the two DOE funding applications remain pending. The initial scoping phase under the 14-month Musongati exclusivity period is set to proceed.

The company has identified the following risk factors as applicable to its forward-looking statements: capital and operating cost variances, delays in obtaining project approvals, changes in government regulations, commodity price fluctuations, and the outcome of legal proceedings with the Tanzania Revenue Authority.