Announcement PDF Coda Minerals Limited ABN: 49 625 763 957 Half Year Financial Report 31 December 2023 Half-Year Financial Report 0 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS DIRECTORS’ REPORT For the half-year ended 31 December 2023 The directors of Coda Minerals Ltd (‘the Company’ or ‘Coda’) present their report together with the financial statements of the Company and its Subsidiaries (‘the Group’) for the half-year ended 31 December 2023, and the Auditor’s Review Report thereon. In order to comply with the provisions of the Corporations Act 2001, the Directors’ report as follows: 1. DIRECTORS The directors of the Company at any time during or since the end of the financial period were: Name & Qualifications Period of Directorship Mr Keith F Jones BBus, FCA, FAICD Non-Executive Chairman Mr Andrew Marshall I Eng(UK), MAICD Non-Executive Director Mr Colin Moorhead BSc (Hons), FAusIMM (CP), FSEG, GAICD Non-Executive Director Mr Paul Hallam BE(Hons)Mining, FAICD, FAusIMM Non-Executive Director Mr Christopher Stevens BA (Hons), MA (Oxon), MSc, GAICD, FAusIMM Chief Executive Officer and Executive Director Director and Chair since 26 April 2018 Director since 19 July 2019 Director since 21 August 2019 Director since 21 August 2019 Director since 26 April 2018 2. PRINCIPAL ACTIVITIES The principal activities of the Company during the period were primarily focused on the progression of exploration and evaluation activities associated with the Elizabeth Creek Copper Cobalt Project (“Elizabeth Creek”) in South Australia. The Company also advanced exploration work at the Cameron River Copper Gold Project (“Cameron River”) as well as engaging in the evaluation of projects and potential joint ventures with other mining companies to explore for minerals. 3. REVIEW OF OPERATIONS Overview and strategy Coda is focused on the discovery and development of minerals that are leveraged to the global energy transformation through electrification and the adoption of renewable energy technologies. Coda's flagship asset is the 100%-owned Elizabeth Creek Copper-Cobalt Project, located in the world-class Olympic Copper Province in the Eastern Gawler Craton, South Australia’s most productive copper belt. Elizabeth Creek is centred 100km south of BHP’s Olympic Dam coppergold-uranium mine, 15km from its new Oak Dam West Project and 50km west of its Carrapateena copper-gold project. Coda consolidated 100% ownership of the Elizabeth Creek Copper Project after completing the acquisition of its former joint venture partner, Torrens Mining, in the first half of 2022. In December 2021, Coda announced a maiden Indicated and Inferred Mineral Resource Estimate for the Emmie Bluff copper-cobalt deposit at Elizabeth Creek comprising 43Mt @ 1.3% copper, 470ppm cobalt, 11g/t silver and 0.15% zinc (1.84% CuEq i) containing approximately 560kt copper, 20kt cobalt, 15.5Moz silver and 66kt zinc (800kt CuEqi). Importantly, 92% of the contained metal is classified in the higher confidence ‘Indicated Resource’ category and is available for use in mining studies. Emmie Bluff is one of three known ‘Zambian-style’ copper-cobalt deposits at Elizabeth Creek, including JORC 2012 compliant Indicated Mineral Resources at the Windabout (18Mt @ 1.14% CuEq i) and MG14 (1.8Mt @ 1.67% CuEq i) deposits. Collectively, the three resources at Elizabeth Creek now host a total of 1.1 million tonnes of contained copper equivalent. In March 2023, Coda released the results of the Elizabeth Creek Copper-Cobalt Project Scoping Study, which outlined an economically robust, long-life project with potential to further improve on several key metrics. On 30 January 2024, Coda released an update to this Scoping Study, integrating mechanical cutting as the principal underground mining method employed at the Emmie Bluff deposit as well as improvements to the mineral processing flowsheet, a greater annual throughput and other changes. The updated study delivered improved pre-tax NPV8 of approximately $735 million, an increase of $165 million or 29% over the March 2023 Study, with an IRR of 27% and an AISC of $1.60 USD/lb Cu after by-product credits. Coda also discovered a significant IOCG system adjacent to and below the Emmie Bluff target, with initial deep diamond drilling in June 2021 intersecting 200m of intense IOCG alteration at the Emmie IOCG target, including approximately 50m of copper sulphide mineralisation. Since then, Coda has drilled 21 holes into Emmie IOCG, with all but three returning significant widths of mineralisation, some over 3% copper and 0.5g/t gold. i See on statement regarding metal equivalent calculations on page 22. 1 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS DIRECTORS’ REPORT For the half-year ended 31 December 2023 Coda completed a substantial geophysics programme and announced a new geophysical interpretation of the Emmie IOCG prospect in October 2023. The new model refines Coda’s existing hypothesis for the Emmie IOCG mineralising event and suggests that a pair of North to NNE striking low angle thrust faults dipping to the east and plunging slightly to the north are the most likely controlling structures and are associated with the highest density material in the area. The model developed helps explain the structural controls underpinning the Emmie IOCG mineralisation and offers valuable explanatory and predictive power. Under this exploration model, additional IOCG mineralisation is anticipated to be found where permeable strata (as previously defined in drilling) interact with the two identified mineralising structures. Coda has a dual strategy for success at Elizabeth Creek. Firstly, carrying out detailed optimisation in key areas of the successful Scoping Study to enhance the economic potential of the known sediment-hosted Mineral Resources on the tenure, while simultaneously undertaking exploration to further define and extend known Zambian-style copper-cobalt resources across multiple prospects. Secondly, Coda completed a substantial geophysics programme and announced a new geophysical interpretation of the Emmie IOCG prospect which will assist in making decisions about drill target locations and is expected to result in the delineation of multiple new, high priority targets. Coda also has a Farm-In and Joint Venture Agreement with Wilgus Investments Pty Ltd to acquire up to 80% ownership of the Cameron River Copper-Gold Project, located in the highly prospective Mount Isa Inlier in Queensland. The Project comprises 35km2 of copper and gold exploration tenure spanning two Exploration Permits (EPMs 27042 and 27053). Through the Torrens Mining acquisition, Coda also owns exploration tenements in Victoria, New South Wales and Papua New Guinea Key events for the half year ended 31 December 2023: • Substantial progress on Elizabeth Creek Copper-Cobalt Study optimisation, including: o Significant advances in mineral processing flowsheet development including a 40% increase in copper recoveries from the MG14 open pit deposit and ongoing testwork for applicability of this enhancement to the Windabout and Emmie Bluff deposits; o Pivotal underground ore-sorting study completed with positive results released during the half year period; and o Advanced work to add significant project value through the implementation of mechanical cutting as a more selective, lower cost mining method at Emmie Bluff. • Interpretation of tight-spaced forward gravity completed, integrating all previous and recently acquired IOCG related datasets to generate IOCG targeting vectors. Results released during the half year period indicate the presence of a structural corridor controlling the IOCG mineralisation and extending up to 2.4km to the northern tenement boundary, significantly expanding the prospective IOCG search space. • Strategic partner discussions continued regarding the future development of Elizabeth Creek including technical and economic studies. • During the half year period, Coda announced that it, in partnership with Boss Energy, had been successful in the application for a package of highly prospective “Kinloch” project tenure covering the Cambrian-Ordovician Delamerian Orogen basement rocks and the overlying Cenozoic Murray Basin sediments in eastern South Australia. The tenure, awarded through the competitive Exploration Release Area (ERA) process will be held in a JV at a formal 75:25 ownership split, with Coda holding 25%, However, Boss and Coda have agreed to progress the mineral rights sharing arrangement, under which Coda will be entitled to 100% of the base metal rights while Boss will be entitled to 100% of the uranium rights on the tenements. • In October, Coda received confirmation from the South Australian Department for Energy and Mining of the formal grant of EL 6954. This 72 square kilometre tenement is adjacent to and immediately south of Elizabeth Creek. The company considers it prospective for additional shallow sediment-hosted copper-cobalt mineralisation. • During the half year period, and in line with its commitment to high levels of environmental and social governance, Coda initiated stand-alone ESG reporting with the release of its first standalone Sustainability Report. 4. FINANCIAL POSITION As at 31 December 2023, Coda had cash and cash equivalents of $1,854,940 (30 June 23: $4,717,592) and net current assets of $1,992,638 (30 June 23: $4,160,436). For the half year period ended on 31 December 2023, Coda recorded a loss after tax of $2,324,614 (31 December 2022: $4,298,561) and experienced net operating cash outflows of $2,809,775 (31 December 2022: $4,801,611). No dividends were paid during the half year ended 31 December 2023. 5. GOING CONCERN As disclosed in the financial statements the Group held cash and cash equivalents of $1,854,940, had a net current asset surplus of $1,992,638 and incurred a net loss of $2,324,614, had cash outflows from operating activities of $2,809,775 for the half year ended 31 December 2023. 2 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS DIRECTORS’ REPORT For the half-year ended 31 December 2023 The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to meet its working capital requirement by raising additional funds from equity markets and potential investors and curtailing corporate, administration expenses and overhead cash outflows until such time as it attains positive cash flows from operating activities. The Group does not have any recurring sources of income and therefore remains dependent on ongoing capital raising to fund general working capital and exploration and evaluation activities. The Directors believe that there are reasonable grounds to conclude that the Group will be able to continue as a going concern, after consideration of the following factors: The Group has substantial cash equivalents on hand as at 31 December 2023; The ability of the Group to issue additional equity securities to raise further working capital; and The ability to curtail corporate and administration expenses and overhead cash outflows as and when required. • • • On this basis, the Directors are of the opinion that the financial statements should be prepared on a going concern basis and that the Group will be able to pay its liabilities as and when they fall due and payable. 6. EVENTS SUBSEQUENT TO REPORTING DATE No matters or circumstances have arisen since the end of the half year period apart from the following: • • • • On the 3rd of January 2024, Coda received 1 Kali Metals Limited (“Kali”) share for every 17.64 Kalamazoo Limited (“Kalamazoo”) shares held following the successful spin out of Kali from Kalamazoo; On 30 January 2024, Coda released an update to its Elizabeth Creek Copper-Cobalt Project Scoping Study, integrating mechanical cutting as the principal underground mining method employed at the Emmie Bluff deposit as well as improvements to the mineral processing flowsheet, a greater annual throughput and other changes. The updated study delivered improved pre-tax NPV8 of approximately $735 million, an increase of $165 million or 29% over the March 2023 Study, with an IRR of 27% and an AISC of $1.60 USD/lb Cu after by-product credits; On 9 February 2024, Coda executed agreements to consolidate 100% ownership of the Cameron River Project tenure in Queensland; and On 21 February 2024, Coda received a research and development tax offset refund of $268,933 from the Australian Tax Office for the 30 June 2023 financial year under the ATO’s research and development tax incentive scheme. 7. AUDITOR INDEPENDENCE A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001 at Perth, WA on 27 February 2024, on behalf of Directors. K F Jones Director 3 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS RSM Australia Partners Level 32 Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Coda Minerals Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. RSM AUSTRALIA PARTNERS Perth, WA Dated: 27 February 2024 MATTHEW BEEVERS Partner THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au INDEPENDENT AUDITOR’S REVIEW REPORT To the Members of Coda Minerals Limited Report on the Half-Year Financial Report Conclusion We have reviewed the accompanying half-year financial report of Coda Minerals Limited which comprises the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Coda Minerals Limited is not in accordance with the Corporations Act 2001 including: (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2023 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Coda Minerals Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report. THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation Directors’ Responsibility for the Half-Year Financial Report The directors of Coda Minerals Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility for the Review of the Financial Report Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2023 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. RSM AUSTRALIA PARTNERS Perth, WA Dated: 27 February 2024 MATTHEW BEEVERS Partner DIRECTORS’ DECLARATION For the half-year ended 31 December 2023 In the opinion of the directors of Coda Minerals Ltd (“the Company”): (a) the financial statements and notes comply with the Corporations Act 2001 Australian Accounting Standard AASB 134 ‘Interim Financial Reporting’, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Dated at Perth this 27th day of February 2024. Signed in accordance with a resolution of the directors made pursuant to section 303(5)(a) of the Corporations Act 2001. _______________________ KF Jones Director 7 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS Coda Minerals Limited and its controlled entities Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2023 Consolidated statement of profit or loss and other comprehensive income Note 31 December 2023 $ 31 December 2022 $ Other income 4 269,622 69,907 Administration expenses Exploration & evaluation expenses Corporate finance expenses Other expenses Results from operating activities 4(a) 4(b) 4(c) 4(d) (1,392,220) (1,134,137) (48,000) (79,485) (2,384,220) (2,363,757) (1,883,679) (98,251) (81,018) (4,356,798) Finance income Finance expenses 4 4(e) 67,711 (8,105) 59,918 (1,681) Loss before income tax (2,324,614) (4,298,561) Income tax benefit / (expense) Loss for the period attributable to owners of the Company (2,324,614) (4,298,561) 7,625 61,000 (2,316,989) (4,237,561) ($0.02) ($0.03) Other comprehensive income Fair value movement on financial asset 7 Total comprehensive loss for the period attributable to owners of the Company Earnings per share Basic and diluted (loss) per share The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes to the financial statements. Refer to Note 2 on basis of preparation. 8 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS Coda Minerals Limited and its controlled entities Consolidated Statement of Financial Position as at 31 December 2023 Consolidated statement of financial position 31 December 2023 $ 30 June 2023 $ CURRENT ASSETS Cash and cash equivalents Receivables Prepayments TOTAL CURRENT ASSETS 1,854,940 282,307 289,864 2,427,111 4,717,592 77,572 224,185 5,019,349 NON-CURRENT ASSETS Receivables Financial assets at fair value through other comprehensive income Receivables Property, plant and equipment Intangible assets Exploration and evaluation assets TOTAL NON-CURRENT ASSETS 54,107 183,000 150,328 297,460 111,219 17,926,175 18,722,289 175,375 150,328 165,812 117,887 17,926,175 18,535,577 21,149,400 23,554,926 CURRENT LIABILITIES Trade and other payables Employee benefits Lease liabilities TOTAL CURRENT LIABILITIES 131,389 199,781 103,303 434,473 581,587 269,658 7,668 858,913 NON-CURRENT LIABILITIES Lease liabilities TOTAL NON-CURRENT LIABILITIES 64,058 64,058 - TOTAL LIABILITIES 498,531 858,913 20,650,869 22,696,013 44,320,954 12,040,106 1,271,772 (76,250) (36,905,713) 44,137,422 12,040,106 1,368,926 (83,875) (34,766,566) 20,650,869 22,696,013 Note 5 TOTAL ASSETS NET ASSETS EQUITY Issued capital Capital contribution reserve Share based payments reserve Revaluation reserve Accumulated losses 6 7 7 7 TOTAL EQUITY The consolidated statement of financial position is to be read in conjunction with the notes to the financial statements. Refer to Note 2 on basis of preparation. 9 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS Coda Minerals Limited and its controlled entities Consolidated Statement of Changes in Equity For the half-year ended 31 December 2023 31 December 2023 Consolidated statement of changes in equity $ $ Share based payments reserve $ $ $ $ Opening balance at 1 July 2023 Loss for the period Fair value movement on financial asset Total comprehensive loss for the period Shares issued under placement Share issue costs Transferred from reserve upon expiry Transferred from reserve upon exercise Share-based payments to Directors and employees 44,137,422 183,532 - 12,040,106 - 1,368,926 (185,467) (183,532) 271,845 (83,875) 7,625 7,625 - (34,766,566) (2,324,614) (2,324,614) 185,467 - 22,696,013 (2,324,614) 7,625 (2,316,989) 271,845 Closing balance at 31 December 2023 44,320,954 12,040,106 1,271,772 (76,250) (36,905,713) 20,650,869 Issued capital Capital contribution reserve Revaluation reserve Accumulated losses Total $ $ Share based payments reserve $ $ $ $ Opening balance at 1 July 2022 Loss for the period Fair value movement on financial asset Total comprehensive loss for the period Shares issued under placement Share issue costs Transferred from reserve upon exercise Share-based payments to Directors, employees & lead advisor 40,229,393 3,809,755 (264,265) 43,063 - 12,040,106 - 611,859 (43,063) 666,646 61,000 61,000 - (27,003,901) (4,298,561) (4,298,561) - 25,877,457 (4,298,561) 61,000 (4,237,561) 3,809,755 (264,265) 666,646 Closing balance at 31 December 2022 43,817,946 12,040,106 1,235,442 61,000 (31,302,462) 25,852,032 31 December 2022 Consolidated statement of changes in equity Issued capital Capital contribution reserve Revaluation reserve The statement of changes in equity is to be read in conjunction with the notes to the financial statements. Refer to Note 2 on basis of preparation. 10 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS Accumulated losses Total Coda Minerals Limited and its controlled entities Consolidated Statement of Cashflows For the half-year ended 31 December 2023 Consolidated statement of cash flows Cash flows from operating activities Proceeds from government grants and tax incentives Payments for exploration and evaluation expenditure Payments for administration, corporate finance activities and other expenditure Interest received Note 31 December 2023 $ 31 December 2022 $ 4 689 (1,314,752) (1,563,423) 69,907 (3,163,626) (1,767,810) 67,711 59,918 (2,809,775) (4,801,611) Cash flows from investing activities Payments for property, plant & equipment Proceeds from sale of Mt Piper Premium on options issued (1,817) - (5,434) 300,000 375 Net cash (used in) / from investing activities (1,817) 294,941 Cash flows from financing activities Proceeds from issue of shares Payments associated with the issue of shares Repayment of lease liabilities (51,060) 3,809,755 (264,265) (50,286) Net cash from financing activities (51,060) 3,495,204 Net decrease in cash and cash equivalents (2,862,652) (1,011,466) Cash and cash equivalents at beginning of the period 4,717,592 8,178,668 Cash and cash equivalents at the financial period end 1,854,940 7,167,202 Net cash used in operating activities The consolidated statement of cash flows is to be read in conjunction with the notes to the financial statements. Refer to Note 2 on basis of preparation. 11 CODA MINERALS LIMITED and its controlled entities ACN 625 763 957 INTERIM FINANCIAL STATEMENTS Coda Minerals Limited and its controlled entities Notes to the Consolidated Financial Statements For the half-year ended 31 December 2023 1. REPORTING ENTITY Coda Minerals Ltd (the ‘Company’ or ‘Coda’) is a company domiciled in Australia and listed on the Australian Securities Exchange “ASX” (ASX:COD). The consolidated interim financial report as at and for the six months ended 31 December 2023 comprise the Company and its subsidiaries’ (‘the Group’) results. The Company is a for-profit entity primarily involved in the exploration and evaluation of mineral resources. The annual financial report of the Company as at and for the year ended 30 June 2023 is available upon request from the Company’s registered office at 6 Altona Street, West Perth WA or at www.codaminerals.com 2. SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance These consolidated half-year financial statements are general purpose financial statements which have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. Compliance with AASB 134 ensures compliance with International Financing Reporting Standard IAS 34 Interim Financial Reporting. The consolidated half-year financial statements do not include all the information required for a full annual report and should be read in conjunction with the annual financial report of the Group as at and for the year ended 30 June 2023 and any public announcements made by Coda during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001. The consolidated half-year financial statements were approved by the Board of Directors on 27 February 2024. Basis of preparation The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments. All amounts are presented in Australian dollars, unless otherwise noted. Going Concern As disclosed in the financial statements the Group held cash and cash equivalents of $1,854,940, had a net current asset surplus of $1,992,638 and incurred a net loss of $2,324,614, had cash outflows from operating activities of $2,809,775 for the half year ended 31 December 2023. The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to meet its working capital requirement by raising additional funds from equity markets and potential investors and curtailing corporate, administration expenses and overhead cash outflows until such time as it attains positive cash flows from operating activities. The Group does not have any recurring sources of income and therefore remains dependent on ongoing capital raising to fund general working capital and exploration and evaluation activities. The Directors believe that there are reasonable grounds to conclude that the Group will be able to continue as a going concern, after consideration of the following factors: • • • The Group has substantial cash equivalents on hand as at 31 December 2023; The ability of the Group to issue additional equity securities to raise further working capital; and The abilit