Artemis
Resources Limited
("Artemis" or the "Company")
Interim
Financial Report for the six months ended 31 December
2023
Artemis Resources Limited (ASX/AIM: ARV; FRA: ATY)
the gold, copper and lithium focused resources company with
projects in Western Australia, today announces its interim results
for the six months ended 31 December 2023.
Artemis Resources
Ltd
|
|
Guy Robertson, Chairman
George Ventouras, Executive Director
|
info@artemisresources.com.au
|
|
|
WH Ireland Limited
(Nomad & Broker)
|
|
Antonio Bossi / James Bavister / Isaac Hooper
|
Tel: +44 20 7220 1666
|
Highlights
·
Significant mineralised lithium samples from the
Osborne trend (Joint Venture ARV 49%)
·
Groundwork commenced for lithium exploration on
100% owned ground with subsequent excellent results from rock chip
samples
·
Exploration Incentive Scheme (EIS) grant of
$82,500 awarded for Lulu Creek gold project
·
New target identified at Paterson Gold
project
· The
Company raised approximately A$2.0 million at $0.018 per share from
institutional and sophisticated investors
Review of
Operations
Artemis Resources Limited ('Artemis") is a gold,
copper and lithium focused resource exploration company with
projects in the West Pilbara and the Central Paterson Region of
Western Australia. The Company's assets include the Carlow Project
Gold-Copper-Cobalt resource as well as the Radio Hill processing
plant ("Radio Hill"), both located within 35km radius of
Karratha.
The primary focus during the half year was on lithium
exploration.
Figure
1. Artemis Resources
tenements
Karratha Lithium Project (ARV 100%)
Various programs of ground
reconnaissance were completed during the half year. Numerous swarms
of pegmatites were identified within and along the margins of the
Andover mafic intrusive complex within 100% Artemis tenement
E47/1746. Six sets of pegmatites were identified which featured
elevated levels of lithium-caesium-tantalum (LCT) and rubidium
mineralisation, including four pegmatite clusters considered highly
prospective for economic mineralisation.
Figure 2. Pegmatite evaluation work
area (yellow outline) in relation to Artemis tenure
Figure 3. LCT and Rb anomalous rock
chip samples with priority areas for follow up
Over 90 outcrops of pegmatites have
been identified to date with the largest outcropping pegmatite
having a strike of 200m and average width more than 45m.
Mt
Marie Lithium Prospect
Drone surveys were undertaken in the
northern sector of tenement E47/1746 late in 2023 and subsequently
a ground reconnaissance program was designed and conducted. 21 rock
chip samples were submitted to the laboratory for assays with
results peaking at 1.82% and 1.62% Li2O. Further ground
work is planned for CY2024.
Figure 4. Mt Marie lithium
prospect
Figure 5. Spodumene crystals
located at the Mt Marie lithium prospect
Osborne Joint Venture (Artemis 49%)
Figure 6.
Osborne joint venture tenement
Ground work continued on the Osborne
JV tenement (ARV:49%, GRE:51%) with various soil and rock chip
sampling programs having been completed. Two new pegmatite zones
were identified within the Osborne JV next to the Osborne trend,
5km south-east of the Kobe lithium pegmatite discovery. Newly
discovered trends, Wally and Maddox both extend over 1km with outcrops up to
100m Wide.
Significant mineralised lithium
samples from the Osborne trend included:
·
2.4%
Li2O from sample
23GT20-155
·
2.4%
Li2O from sample
23GT30-232
·
2.36%
Li2O, from sample
23GT24-021
·
1.64%
Li2O, from sample
23GT20-693
·
1.5%
Li2O from sample
23GT20-233
·
1.15%
Li2O, from sample
23GT24-026
Three diamond drill holes totalling
1404m were completed with one hole located on the Kobe trend and
two holes in the Osborne trend (Figure 6). The program was aimed at
gathering stratigraphic and structural information relating to
these pegmatite trends which will be used to refine a follow-up RC
drill. Details of the completed drill program are as
follows:
Drill Hole Id
|
Easting
|
Northing
|
Azmith
deg
|
Dip
deg
|
EOHm
|
Prospect
|
23GTDD001
|
493160
|
7691875
|
176
|
-40
|
810.2
|
South
Zone
|
23GTDD002
|
493509
|
7691879
|
195
|
-50
|
279.2
|
South
Zone
|
23GTDD003
|
485941
|
7693630
|
10
|
-40
|
315.1
|
Kobe
|
Figure 7.
Schematic Cross Section 23GTDD001
These results are further evidence
of the consistency of the high grade lithium mineralisation on the
Osborne JV tenement which provides the Company with confidence for
the next phase of exploration activity.
The Kobe trend currently extends
1.5km into the Osborne JV tenure and the combined Osborne trends
feature +4km of lithium strike mineralisation.
Greater Carlow Project (ARV 100%)
Lulu Creek IP - Gold
Target
An Exploration Incentive Scheme
(EIS) grant of $82,500 was awarded from the West Australian State
Government to assist with drilling RC holes at the Lulu Creek gold
project.
Through a previously conducted
high-resolution dipole - dipole IP (induced polarisation)
geophysics survey at Lulu Creek, high level chargeability anomalies
that may represent disseminated sulphides within the exploration
area were identified. Subject to further modelling and
interpretation of the IP chargeability and resistivity bodies and a
heritage survey across the prospect, drilling can be undertaken and
is anticipated to be completed within H1 2024, once relevant
approvals have been received.
Figure 8.
Lulu Creek anomalies identified through IP
Survey.
Paterson Gold Project
A detailed strategic review of the
Company's 100% owned Paterson Gold Project in Western Australia
commenced with the aim of establishing a development pathway to
extract maximum value for shareholders. An independent technical
review identified a new priority target, Apollo North. The
review also identified that drill hole 22PTMRD011 intercepted the
same lithotypes and similar mineralisation as Havieron and was
considered to be typical of a 'near miss' at Havieron. Multiple
options are currently being considered to advance the Project,
including joint ventures and third party funding.
Competent Person's Statement
Exploration
Results
The information in this report that relates to exploration
results is based on, and fairly represents information supporting
documentation prepared by Mr Oliver Hirst, a Competent Person who
is a member of the Australian Institute of Mining and Metallurgy
(AusIMM). Mr Hirst is a consultant geologist to Artemis
Resources. Mr Hirst has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Hirst Consents to the inclusion in this report of the
matters based on his information in the form and context in which
it appears.
Events subsequent to
reporting date
Dr Simon Dominy resigned as a director on 9 January
2024. Mr Christopher Kelsall was appointed a director on 9 January
2024 and resigned on 12 March 2024.
Other than as outlined above, there were no events
subsequent to the end of the period that would have a material
effect on the Group's financial statements as at 31 December
2023.
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For
the Half-year Ended 31 December 2023
|
|
Consolidated
|
|
|
31 December
|
|
31 December
|
|
|
2023
|
|
2022
|
|
Notes
|
$
|
|
$
|
Other income
|
3
|
37,940
|
|
13,840
|
|
|
|
|
|
Personnel costs
|
|
(316,112)
|
|
(29,650)
|
Occupancy costs
|
|
(16,687)
|
|
(15,891)
|
Legal fees
|
|
(9,156)
|
|
(3,679)
|
Consultancy costs
|
|
(203,705)
|
|
(365,420)
|
Compliance and regulatory expenses
|
|
(126,646)
|
|
(123,138)
|
Directors' fees
|
|
(235,497)
|
|
(376,750)
|
Travel
|
|
(24,248)
|
|
(15,000)
|
Borrowing costs
|
|
(3,045)
|
|
(4,101)
|
Project and exploration expenditure written off
|
6
|
(20,353)
|
|
(113,741)
|
Impairment expense
|
7
|
-
|
|
(12,469,852)
|
Net fair value loss on financial instruments
designated as fair value through profit or loss
|
5
|
(540,000)
|
|
(3,128,849)
|
Share-based payments
|
11
|
(211,283)
|
|
(373,300)
|
Marketing expenses
|
|
(46,229)
|
|
(47,322)
|
Depreciation and amortisation
|
|
(72,710)
|
|
(59,243)
|
Unrealised foreign exchange loss
|
|
(2,321)
|
|
(11,675)
|
Other expenses
|
|
(41,637)
|
|
(74,206)
|
LOSS BEFORE INCOME TAX
|
|
(1,831,689)
|
|
(17,197,977)
|
Income tax expense
|
|
-
|
|
-
|
LOSS FOR THE PERIOD
|
|
(1,831,689)
|
|
(17,197,977)
|
Other comprehensive income, net of
tax
|
|
-
|
|
-
|
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
|
|
(1,831,689)
|
|
(17,197,977)
|
|
|
|
|
|
Basic loss per share - cents
|
4
|
(0.11)
|
|
(1.24)
|
Diluted loss per share - cents
|
4
|
(0.11)
|
|
(1.24)
|
The consolidated statement
of profit or loss and other comprehensive income is to be read in
conjunction with the accompanying notes
Consolidated Statement of Financial Position
As
at 31 December 2023
|
|
Consolidated
|
|
|
|
31 December
|
|
30 June
|
|
|
|
2023
|
|
2023
|
|
|
Notes
|
$
|
|
$
|
|
CURRENT ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
1,570,889
|
|
1,703,016
|
|
Other receivables
|
|
121,365
|
|
123,104
|
|
Financial assets at fair value through profit or
loss
|
5
|
3,206,250
|
|
3,746,250
|
|
TOTAL CURRENT ASSETS
|
|
4,898,504
|
|
5,572,370
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
Plant and equipment
|
|
45,086
|
|
57,266
|
|
Right-of-use assets
|
|
97,564
|
|
150,781
|
|
Exploration and evaluation expenditure
|
6
|
32,907,945
|
|
32,054,704
|
|
Development expenditure
|
7
|
15,009,145
|
|
14,950,070
|
|
TOTAL NON-CURRENT ASSETS
|
|
48,059,740
|
|
47,212,821
|
|
TOTAL ASSETS
|
|
52,958,244
|
|
52,785,191
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
8
|
1,225,834
|
|
1,529,181
|
|
Current lease liabilities
|
|
100,204
|
|
103,382
|
|
Employee benefits obligation
|
|
19,845
|
|
14,734
|
|
TOTAL CURRENT LIABILITIES
|
|
1,345,883
|
|
1,647,297
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Lease liabilities
|
|
-
|
|
49,577
|
|
Provisions
|
9
|
5,723,259
|
|
5,723,259
|
|
TOTAL NON-CURRENT LIABILITIES
|
|
5,723,259
|
|
5,772,836
|
|
TOTAL LIABILITIES
|
|
7,069,142
|
|
7,420,133
|
|
NET
ASSETS
|
|
45,889,102
|
|
45,365,058
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Share capital
|
10
|
119,541,004
|
|
117,396,554
|
|
Reserves
|
11
|
487,655
|
|
389,358
|
|
Accumulated losses
|
|
(74,139,557)
|
|
(72,420,854)
|
|
TOTAL EQUITY
|
|
45,889,102
|
|
45,365,058
|
|
|
|
|
|
|
|
|
| |
The consolidated statement
of financial position should be read in conjunction with the
accompanying notes.
Consolidated Statement of Changes in Equity
For
the Half-year Ended 31 December 2023
Consolidated
|
Share
capital
|
Accumulated losses
|
Reserves
|
Total
equity
|
|
$
|
$
|
$
|
$
|
Balance at 1 July 2023
|
117,396,554
|
(72,420,854)
|
389,358
|
45,365,058
|
|
|
|
|
|
Loss for the period
|
-
|
(1,831,689)
|
-
|
(1,831,689)
|
Other comprehensive income
|
-
|
-
|
-
|
-
|
Total comprehensive loss for the period
|
-
|
(1,831,389)
|
-
|
(1,831,689)
|
Issue of shares
|
2,144,450
|
-
|
-
|
2,144,450
|
Transfer to share-based payments reserve
|
-
|
-
|
211,283
|
211,283
|
Transfer from share-based payments reserve
|
-
|
112,986
|
(112,986)
|
-
|
Balance at 31
December 2023
|
119,541,004
|
(74,139,557)
|
487,655
|
45,889,102
|
|
|
|
|
|
Consolidated
|
Issued
capital
|
Accumulated losses
|
Reserves
|
Total
equity
|
|
$
|
$
|
$
|
$
|
Balance at 1 July 2022
|
114,927,239
|
(58,330,600)
|
2,725,913
|
59,322,552
|
Loss for the period
|
-
|
(17,197,977)
|
-
|
(17,197,977)
|
Other comprehensive income
|
-
|
-
|
-
|
-
|
Total comprehensive loss for the period
|
-
|
(17,197,977)
|
-
|
(17,197,977)
|
Issue of shares
|
83,359
|
-
|
-
|
83,359
|
Transfer to share-based payments reserve
|
-
|
-
|
373,300
|
373,300
|
Transfer from share-based payments reserve
|
-
|
984,123
|
(984,123)
|
-
|
Balance at 31
December 2022
|
115,010,598
|
(74,544,454)
|
2,115,090
|
42,581,234
|
The consolidated statement of changes in equity should
be read in conjunction with the accompanying notes.
Consolidated Statement of
Cash Flows
For the Half-year
Ended 31 December 2023
|
|
Consolidated
|
|
|
31 December 2023
|
|
31 December 2022
|
|
|
$
|
|
$
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Receipts from customers
|
|
-
|
|
15,149
|
Payments to suppliers and employees
|
|
(958,392)
|
|
(1,486,233)
|
Interest received
|
|
2,260
|
|
-
|
NET
CASH USED IN OPERATING ACTIVITIES
|
|
(956,132)
|
|
(1,471,084)
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Payments for exploration and evaluation
|
|
(1,203,507)
|
|
(4,723,740)
|
Payments for property, plant and equipment
|
|
-
|
|
(17,293)
|
Proceeds on sale of investments
|
|
-
|
|
2,209,711
|
Payment for development expenditure
|
|
(59,075)
|
|
(402,867)
|
NET
CASH USED IN INVESTING ACTIVITIES
|
|
(1,262,582)
|
|
(2,934,189)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from issue of shares
|
|
2,242,500
|
|
-
|
Cost of share issue
|
|
(98,050)
|
|
-
|
Repayment of lease liabilities
|
|
(55,800)
|
|
(35,541)
|
NET
CASH FROM / (USED) IN FINANCING ACTIVITIES
|
|
2,088,650
|
|
(35,541)
|
|
|
|
|
|
Net decrease in cash
held
|
|
(130,064)
|
|
(4,440,814)
|
Effects of exchange rate changes on the balance of
cash held in foreign currencies
|
|
(2,063)
|
|
(12,617)
|
Cash at the beginning of the period
|
|
1,703,016
|
|
6,106,222
|
CASH AT THE END OF THE PERIOD
|
|
1,570,889
|
|
1,652,791
|
The consolidated statement of cash flows is to be read
in conjunction with the accompanying notes.
Notes to the Financial Statements
For
the Half-year Ended 31 December 2023
1. Statement of
significant accounting policies
Basis of Preparation
The half-year financial report is a
general-purpose financial report prepared in accordance with the
requirements of the Corporations Act 2001 and AASB 134: Interim
Financial Reporting. The Group is a for profit entity for financial
reporting purposes under Australian Accounting
Standards.
The half-year financial report does
not include notes of the type normally included in an annual
financial report. The half-year financial report is to be read in
conjunction with the most recent annual financial report for the
year ended 30 June 2023 and any public announcements made by the
Group during the half-year in accordance with continuous disclosure
requirements arising under the Corporations Act 2001 and the ASX
Listing Rules.
The consolidated financial
statements have been prepared on the basis of historical costs,
except for the revaluation of certain non-current assets and
financial instruments. Cost is based on the fair value of the
consideration given in exchange for assets. All amounts are
presented in Australian dollars, unless otherwise stated. The
financial statements are presented in Australian dollars which is
Artemis Resources Limited's functional and presentation
currency.
These interim financial statements
were authorised for issue on 14 March 2024.
New and revised
Standards and amendments thereof and Interpretations effective for
the current half-year that are relevant to the Group
The Group has adopted all of the new
and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are mandatory for the
current reporting period that are relevant to its operations and
effective for annual reporting periods beginning on or after 1 July
2023.
Going
Concern
For the half-year ended 31 December
2023 the Group recorded a loss of $1,831,689 (2022: a loss of
$17,197,977) and had net cash outflows from operating and investing
activities of $2,218,714 (2022: $4,405,273). The 2023 half year
loss includes a non cash fair value loss adjustment on its
investment in GreenTech Metals Ltd of $540,000 and a non cash
expense of $211,283 for share based payments.
The Directors believe that it is
reasonably foreseeable that the Company and Group will continue as
going concerns and that it is appropriate to adopt the going
concern basis in the preparation of the financial report after
consideration of the following factors:
·
The Group has cash at bank of $1,570,889, liquid investments of
$3,206,250 and net assets of $45,889,102 as at 31 December
2023;
·
The Company has recently raised $2.03 million (before costs) and
has the ability to raise further capital to enable the Group to
meet scheduled exploration expenditure requirements;
·
The Company has the ability to dispose of non-core assets and scale
back certain parts of their activities that are non-essential so as
to conserve cash; and
·
The Group retains the ability, if required, to wholly or in part
dispose of interests in mineral exploration and development assets,
and liquid investments.
However, should the Company be unable to raise
capital in a sufficiently timely basis and/or
reduce expenditure to the extent required, there
exists a material uncertainty which may cast
significant doubt as to whether the Company and Group will
continue as going concerns and therefore whether they will realise
their assets and extinguish their liabilities in the normal course
of business and at the amounts stated in the financial
report.
Use of estimates
and judgements
The preparation of financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
Impairment of development expenditure assets
At the end of each reporting
period, an assessment is made as to whether there is any indication
that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information
including market conditions and asset specific matters. If such an
indication exists, an impairment test is carried out on the asset
by comparing the asset's carrying amount to its estimated
recoverable amount, being the higher of fair value less costs to
sell and value in use.
Where it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the
asset belongs.
Any excess of the asset's carrying
amount over its recoverable amount is recognised immediately in
statement of profit or loss and other comprehensive
income.
The Directors have performed an
impairment test during the period in relation to the Fox Radio Hill
processing plant as detailed in note 7 and have determined that the
recoverable value approximates the carrying value and no further
impairment to this asset should be recognised at the half
year.
2. SEGMENT INFORMATION
AASB 8 Operating Segments requires operating
segments to be identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Chief
Operating Decision Maker in order to allocate resources to the
segment and to assess its performance.
The Group's operating segments have
been determined with reference to the monthly management accounts
used by the Chief Operating Decision Maker to make decisions
regarding the Group's operations and allocation of working capital.
The Executive Director has been determined as the Chief Operating
Decision Maker.
a. Description of segments
The Board has determined that the
Group has two reportable segments, being mineral exploration
activities and development expenditure. The Board monitors the
Group based on actual versus projected expenditure incurred by area
of interest. The internal reporting framework is the most relevant
to assist the Board with making decisions regard the Group and its
ongoing exploration activities.
2. SEGMENT INFORMATION
(Continued)
b. Segment
information provided to the
Board:
31
December 2023
|
|
Exploration Activities
|
|
|
|
|
|
Development
|
Unallocated
|
|
|
Carlow
|
Paterson
|
Lithium Projects
|
Activities
Radio Hill
|
Corporate
|
Total
|
|
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Segment revenue
|
-
|
-
|
-
|
-
|
37,940
|
37,940
|
|
Segment expenses
|
(20,353)
|
-
|
-
|
-
|
(1,849,276)
|
(1,869,629)
|
|
Reportable segment loss
|
(20,353)
|
-
|
-
|
-
|
(1,811,336)
|
(1,831,689)
|
|
Reportable segment assets
|
23,442,328
|
7,963,694
|
1,501,923
|
15,009,145
|
5,041,154
|
52,958,244
|
|
Reportable segment
liabilities
|
-
|
-
|
-
|
5,723,259
|
1,345,882
|
7,069,141
|
|
|
|
|
|
|
|
|
|
31
December 2022
|
|
Exploration Activities
|
|
|
|
|
|
Development
|
Unallocated
|
|
|
|
Carlow Castle
|
Paterson
|
Other Projects
|
Activities
Radio Hill
|
Corporate
|
Total
|
|
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Segment revenue
|
-
|
-
|
-
|
-
|
13,840
|
13,840
|
|
Segment expenses
|
-
|
-
|
-
|
(12,469,852)
|
(4,741,965)
|
(17,211,817)
|
|
Reportable segment loss
|
-
|
-
|
-
|
(12,469,852)
|
(4,728,125)
|
(17,197,977)
|
|
Impairment expense
|
-
|
-
|
-
|
(12,469,852)
|
-
|
(12,469,852)
|
|
Reportable segment assets
|
23,628,641
|
7,576,810
|
-
|
15,000,000
|
3,593,012
|
49,798,463
|
|
Reportable segment
liabilities
|
-
|
-
|
-
|
5,223,259
|
1,993,970
|
7,217,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3. REVENUE
|
Consolidated
|
|
31 December 2023
|
|
31 December 2022
|
|
$
|
|
$
|
Other
income
|
|
|
|
Other income
|
35,680
|
|
13,840
|
Interest received
|
2,260
|
|
-
|
|
37,940
|
|
13,840
|
4. LOSS per share
The calculation of basic loss and
diluted loss per share at 31 December 2023 was based on the loss
attributable to shareholders of the parent company of $1,831,689
(2022: $17,197,977):
|
Consolidated
|
|
31 December 2023
|
|
31 December 2022
|
|
$
|
|
$
|
Basic loss per share
|
(0.11)
|
|
(1.24)
|
Diluted loss per share
|
(0.11)
|
|
(1.24)
|
|
|
|
|
|
No of Shares
|
|
No of Shares
|
Weighted average
number of ordinary shares:
|
|
|
|
Ordinary shares
|
1,642,790,000
|
|
1,390,555,594
|
Ordinary shares fully diluted
|
1,642,790,000
|
|
1,390,555,594
|
|
|
|
|
5. financial assets AT FAIR VALUE THROUGH
PROFIT OR LOSS
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
|
|
|
|
Other financial assets
|
3,206,250
|
|
3,746,250
|
|
|
|
|
Opening balance
|
3,746,250
|
|
6,283,560
|
Disposals - fair value loss¹
|
-
|
|
(4,596,060)
|
Fair value (loss)/gain²
|
(540,000)
|
|
2,058,750
|
Closing balance
|
3,206,250
|
|
3,746,250
|
¹The Company sold Artemis' 70% joint venture
interest in the Munni Munni platinum group metals project to Alien
Metals Limited (LSE: UFO) (Alien), a company incorporated in the
United Kingdom and listed on the London Stock Exchange (LSE), for
358,617,818 shares in UFO at GBP0.008 per share for an amount of
$4,650,000. The sale realised a profit of $2,263,931 in the year
ended 30 June 2022. The shares were sold in the year ended 30 June
2023 for $4,295,000, realising a loss of $2,294, 797. The Company
also sold shares in Thor Mining in the year ended 30 June 2023 for
$301,060, realising a loss of $91,552.
²The Company holds 6,750,000 shares in GreenTech
Metals Ltd (ASX:GRE), which were marked to market value at 31
December 2023 at a carrying value of $3,206,250. This resulted in a
fair value loss for the period of $540,000.
6. exploration and evaluation
expenditure
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
|
|
|
|
Exploration and evaluation expenditure
|
32,907,945
|
|
32,054,704
|
Costs capitalised on areas of
interest have been reviewed for impairment factors, such as
resource prices, ability to meet expenditure going forward and
potential resource downgrades. The Group has ownership or
title to the areas of interest in respect of which it has
capitalised expenditure and has reasonable expectations that its
activities are ongoing.
The recoverability of the carrying
amount of the exploration and evaluation assets is dependent on
successful development and commercial exploration, or,
alternatively, the sale of the respective area of
interest.
Reconciliation of movement during the
period:
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
Opening balance
|
32,054,704
|
|
27,323,626
|
Expenditure capitalised in current period
|
873,594
|
|
5,466,846
|
Exploration expenditure written off
|
(20,353)
|
|
(735,768)
|
Closing balance
|
32,907,945
|
|
32,054,704
|
|
|
|
|
7. DEVELOPMENT EXPENDITURE
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
Development expenditure
|
15,009,145
|
|
14,950,070
|
Reconciliation of movement during the
period:
Opening balance
|
14,950,070
|
|
27,420,924
|
Additions
|
59,075
|
|
-
|
Disposals
|
-
|
|
(1,002)
|
Impairment1
|
-
|
|
(12,969,852)
|
Increase in rehabilitation provision2
|
-
|
|
500,000
|
Closing balance
|
15,009,145
|
|
14,950,070
|
1The Company's market capitalisation is
below its net assets as at 31 December 2023. This represented an
indicator of impairment and as a consequence the Company was
required under accounting standards to test its development
expenditure for impairment by comparing its recoverable value to
its carrying value.
The Company determined the recoverable value based
on fair value less costs of disposal of the Radio Hill processing
Plant, the major component of the carrying amount of development
expenditure. The estimate of fair value is a level 3 on the fair
value hierarchy. Management engaged a third-party to value the
plant as at 30 June 2023 and the expert valued the plant as $24.9
million on a replacement cost basis. Management adjusted the
expert's valuation to reflect the most likely use of the plant and
what management believed would be achieved in a market scenario,
and determined the recoverable amount to be approximately $15
million. As a result, the Company recorded a provision for
impairment of $12,969,852 in the year ended 30 June 2023
($12,469,852 related to the half-year period to 31 December 2022).
The directors have reviewed the assessment of the recoverable value
of its asset at 31 December 2023 and determined that the realisable
value of the asset is still approximately $15 million and as this
approximates the carrying value of the asset as at 31 December
2023, have determined that no further impairment of this asset is
required at this time.
2The increase of $500,000 in the
provision at 30 June 2023 resulted from a revision in the discount
rate used in the calculation of the present value of the future
rehabilitation cost estimates.
8. trade and other
payables
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
|
|
|
|
Trade and other payables
|
1,225,834
|
|
1,529,181
|
9. Provisions
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
Provision for restoration and rehabilitation -
non-current
|
5,723,259
|
|
5,723,259
|
Reconciliation of
movement during the period:
|
Consolidated
|
|
31 December 2023
|
|
30 June
2023
|
|
$
|
|
$
|
Opening balance
|
5,723,259
|
|
5,223,259
|
Additional restoration and rehabilitation
provision
|
-
|
|
500,000
|
Closing balance
|
5,723,259
|
|
5,723,259
|
The
Company has reviewed the provision for restoration and
rehabilitation in view of changes in inflation and discount rates
and determined that no adjustment is required at half-year end.
10. SHARE CAPITAL
|
Consolidated
|
Consolidated
|
|
31 December 2023
|
30 June
2023
|
31 December 2023
|
30 June
2023
|
|
No. of Shares
|
No. of Shares
|
$
|
$
|
Issued and paid-up
capital
|
|
|
|
|
Ordinary shares, fully paid
|
1,691,196,149
|
1,569,918,371
|
119,541,004
|
117,396,554
|
Reconciliation of movement during the
period:
|
Shares
|
|
$
|
Opening balance 1 July 2022
|
1,388,330,984
|
|
114,927,239
|
Shares issued, Placement
|
170,000,000
|
|
2,548,102
|
Shares issued, services rendered
|
11,587,387
|
|
185,359
|
Cost of issue
|
-
|
|
(264,146)
|
Closing balance 30 June 2023
|
1,569,918,371
|
|
117,396,554
|
|
|
|
|
Opening balance 1 July 2023
|
1,569,918,371
|
|
117,396,554
|
Issue of shares, placement1
|
112,777,778
|
|
2,030,000
|
Issue of shares, exercise of options2
|
8,500,000
|
|
212,500
|
Cost of issue
|
-
|
|
(98,050)
|
Closing balance 31 December 2023
|
1,691,196,149
|
|
119,541,004
|
1On 8 November 2023 the Company issued 112,777,778 shares at
$0.018 per share to raise $2.03 million.
2The Company issued 8,500,000 shares on exercise of options.
The options had an exercise price of $0.025 per option and an
expiry date of 9 March 2026.
Ordinary Shares
Ordinary shares participate in dividends and are
entitled to one vote per share at shareholders meetings. In
the event of winding up the Company, ordinary shareholders rank
after creditors and are entitled to any proceeds of liquidation in
proportion to the number of shares held.
11. SHARE-BASED PAYMENT RESERVE
|
Consolidated
|
Consolidated
|
|
31 December 2023
|
30 June
2023
|
31 December 2023
|
30 June
2023
|
|
No. of options
|
No. of options
|
$
|
$
|
Share-based
payments
|
|
|
|
|
Options
|
172,888,884
|
116,500,000
|
487,655
|
389,359
|
|
Options
|
|
$
|
Opening balance 1 July 2022
|
144,729,145
|
|
2,695,313
|
Options issued
|
127,000,000
|
|
496,734
|
Options lapsed
|
(149,229,195)
|
|
(2,802,688)
|
Closing balance 30 June 2023
|
116,500,000
|
|
389,359
|
|
|
|
|
Opening balance 1 July 2023
|
116,500,000
|
|
389,359
|
Free attaching options to share
issue1
|
56,388,884
|
|
-
|
Options issued share-based payments2
|
16,000,000
|
|
211,283
|
Options exercised3
|
(8,500,000)
|
|
-
|
Options lapsed4
|
(7,500,000)
|
|
(112,987)
|
Closing balance 31 December 2023
|
172,888,884
|
|
487,655
|
1During the period, 56,388,884 options
were issued in relation to a capital raising completed on 8
November 2023. One free attaching option was issued for every two
new shares. The options have an exercise price of $0.025 per option
and an expiry date of 9 March 2026.
211,000,000 options were also issued on
the same terms to a broker and an advisor related to the capital
raising, and a further 5,000,000 to a consultant.
3During the period, 8,500,000 options
were exercised. The options had an exercise price of $0.025 per
option and an expiry date of 9 March 2026.
4During the period 7,500,000 options
expired without being exercised. The options had an exercise price
of 7c per option and an expiry date of 31 July 2023.
The unlisted options issued during the half-year
were valued using the Black-Scholes model. The value of these
options were determined on the date of grant using the following
assumptions:
|
Broker/
Consultant
|
Consultant
|
Grant date
|
29/10/2023
|
27/10/2023
|
Exercise price ($)
|
0.025
|
0.025
|
Expected volatility (%)
|
100
|
100
|
Risk-free interest rate
(%)
|
4
|
4.4
|
Expected life (years)
|
2.36
|
2.42
|
Share price at this date
($)
|
0.023
|
0.023
|
Fair value per option
($)
|
$0.0129
|
$0.0131
|
Number of options
|
11,000,000
|
5,000,000
|
For the half-year ended 31 December 2023, the Group
has recorded $211,283 in share-based payment expense (2022:
$373,300).
Performance
rights
No performance rights were issued during the current
period or were outstanding at 31 December 2023.
12. FINANCIAL INSTRUMENTS
The Directors consider that the carrying amounts of
financial instruments are a reasonable approximation of their fair
values.
13. commitments, contingent liabilities and contingent
assets
There are no contingent liabilities
or contingent assets since the last annual reporting
period.
14. Events subsequent to 31 December
2023
Mr Christopher Kelsall was appointed a director on 9
January 2024 and resigned on 12 March 2024. Dr Simon Dominy
resigned as a director on 9 January 2024.
Other than as outlined above, there are no matters
of circumstances that has arisen since the end of the period that
have significantly affected or may significantly materially affect
the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
This announcement was approved for release by the
Board.