Announcement PDF IMPACT MINERALS LIMITED (and Controlled Entities) ABN 52 119 062 261 HALF-YEAR FINANCIAL REPORT 31 December 2023 CONTENTS DIRECTORS’ REPORT ........................................................................................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................. 5 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 .......................................... 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 ............................................................................................................................................................. 7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 ............................................................................................................................................. 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 ............................................................................................................................................................. 9 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 ........................................................................................................................................... 10 DIRECTORS’ DECLARATION............................................................................................................................................ 17 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................................... 18 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 1 of 19 DIRECTORS’ REPORT Your Directors submit the financial report of the consolidated entity for the half-year ended 31 December 2023. DIRECTORS The names of directors who held office during or since the end of the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. • • • • Peter Unsworth – Non-Executive Chairman Michael Jones – Managing Director Paul Ingram – Non-Executive Director Frank Bierlein – Non-Executive Director PRINCIPAL ACTIVITIES The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements mostly within Western Australia. REVIEW OF OPERATIONS Lake Hope HPA Project, WA (IPT 80%) • • • • • • • • Scoping study demonstrates very attractive financial returns; NPV8 A$1.3 billion, CAPEX A$253 million, IRR of 55%. OPEX costs estimated at US$3,400/tonne, potentially the lowest cost globally. Significant progress made on the Preliminary Feasibility Study including completion of environmental baseline studies and a bulk sampling programme for future test work. Three of the Five Stages of the Playa One proprietary and patented sulphate process that converts raw lake clay from Lake Hope into High Purity Alumina (HPA) completed. Results either confirm or improve upon previous results. Intermediate aluminium salts have been produced from Stage 3 that require further purification in Stages 4 and 5 to make HPA, with results expected Q1-Q2 2024. Discussions with industry analysts, marketing representatives and end users have commenced to secure agreements for product testing. Heritage survey completed with the Ngadju Native Title group with clearance received for grounddisturbing activities over the entire Lake Hope deposit and nearby access tracks. The heritage clearance significantly de-risks the Lake Hope project and is a critical component of the work required to lodge a Mining Lease Application, planned for mid 2024. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 2 of 19 DIRECTORS’ REPORT Broken Hill Project, NSW (IPT 100%) • Broken Hill update: Xplor programme completed. Data synthesis and interpretation in progress of all data collected during Xplor. Arkun Nickel-Copper-PGM Project, WA (IPT 100%) • • • • • • • • • • A helicopter-borne MobileMT survey completed over the central Arkun area to map apparent conductivity. Proprietary 3D inversion modelling of the data has developed a three-dimensional conductivity and resistivity model of the underlying geology to approximately 1 kilometre depth. A further 1,000 soil samples collected with results due in Q1 2024. Five large nickel-copper-platinum group-metal (Ni-Cu-PGM) soil geochemistry anomalies, each covering several square kilometres, were identified in the northern portion of the Arkun project. The soil anomalies coincide with magnetic and/or gravity geophysical anomalies that may represent mafic and ultramafic intrusions. Field checking confirms mafic and ultramafic rocks occur within some anomalies and these are priority targets for magmatic Ni-Cu-PGM mineralisation. A further 1,000 soil samples have been recently collected and submitted to the laboratory, with results due in the December Quarter. Twenty moderate to strong electromagnetic (EM) conductors identified in 400 m line-spaced airborne electromagnetic (“AEM”) survey data collected by the XCalibur HELITEM time-domain system. Several priority EM anomalies coincide with the magnetic and gravity anomalies and Ni Cu PGM-insoil anomalies. Many other anomalies have yet to be soil sampled, and this work is a priority for the next few Quarters with a view to a maiden drill programme in 2024. Commonwealth Gold-Silver-Zinc-Lead-Copper Project, NSW (IPT 100%) • • Burrendong Minerals Ltd completed a seed capital raise to fund the company through to an IPO planned for Q1-Q2 2024. Burrendong has the right to earn an 80% interest in Commonwealth. Revised Terms agreed for the Sale of a 75% Interest in the Commonwealth Project, NSW Other Projects (Impact 100% and 80%) • • Doonia: 655 soil samples across the entire licence to explore for lithium and gold with results due in Q1 2024. Work progressed on analysing the previous exploration results at the Dinninup, Mineral Hill, Dalgaranga and Narryer projects. FINANCIAL PERFORMANCE AND FINANCIAL POSITION During the half-year the Group reported an operating loss after tax of $4,610,291 (half-year to 31 December 2022: $2,015,967). As at 31 December 2023 the Group had net assets of $13,317,197 (30 June 2023: $17,417,108) including $2,098,453 of cash and cash equivalents (30 June 2023: $4,688,824). HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 3 of 19 DIRECTORS’ REPORT EVENTS SUBSEQUENT TO THE REPORTING DATE No matters or circumstances have arisen since the end of the half year which significantly affect or may significantly affect the operations of the Group, the results of those operations, or the state of affairs in future years. AUDITOR’S DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, Hall Chadwick WA Audit Pty Ltd, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on the following page and forms part of this directors’ report for the half-year ended 31 December 2023. This report is signed in accordance with a resolution of the Board of Directors. Peter Unsworth Chairman Perth, 13 March 2024 Competent Person’s Statement The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the Company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking 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 (the JORC Code). Dr Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Forward Looking Statements This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Impact Minerals Limited’s (Impact’s) current expectations, estimates and projections about the industry in which Impact operates, and beliefs and assumptions regarding Impact’s future performance. When used in this document, words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although Impact believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Impact and no assurance can be given that actual results will be consistent with these forwardlooking statements. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 4 of 19 To the Board of Directors AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit Director for the review of the financial statements of Impact 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: • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and • any applicable code of professional conduct in relation to the review. Yours faithfully, HALL CHADWICK WA AUDIT PTY LTD Dated this 13th day of March 2024 Perth, Western Australia MARK DELAURENTIS CA Director CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 CONSOLIDATED Notes 31 Dec 2023 $ 31 Dec 2022 $ Interest and other income 3 77,974 22,192 Other income 3 - 5,000 77,974 27,192 Employee benefits expense (252,102) (474,749) Corporate and administration expenditure (736,752) (446,515) Depreciation and amortisation expense (54,307) (9,297) Occupancy expense (26,613) (33,538) Financing expense (22,493) - (3,595,998) (1,079,060) (4,610,291) (2,015,967) - - (4,610,291) (2,015,967) 53,000 (13,750) Other comprehensive income (net of tax) 53,000 (13,750) Total comprehensive loss for the period (4,557,291) (2,029,717) Total comprehensive loss attributable to the owners of Impact Minerals Limited (4,557,291) (2,029,717) Cents per share Cents per share (0.16) (0.08) Impairment of exploration expenditure 7 Loss before income tax expense Income tax expense Net Loss from continuing operations Other comprehensive income / (loss) Items that will not be reclassified to profit or loss Change in the fair value of financial assets 6 Loss attributable to the owners of Impact Minerals Limited Basic Profit/(Loss) per share 13 The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 6 of 19 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 CONSOLIDATED Notes 31 Dec 2023 $ 30 Jun 2023 $ 4 2,098,453 4,688,824 Trade and other receivables 30,674 41,915 Other current assets 81,031 61,561 1,782,037 3,277,513 3,992,196 8,069,813 179,250 126,250 32,061 30,506 9,590,142 9,568,039 Right of Use Assets 397,129 442,087 Other non-current assets 234,055 234,055 Total Non-Current Assets 10,432,637 10,400,937 TOTAL ASSETS 14,424,833 18,470,750 Trade and other payables 519,541 452,065 Short-term provisions 152,664 151,973 Lease Liabilities 72,141 48,102 744,346 652,140 Lease Liabilities 363,289 401,502 Total Non-Current Liabilities 363,289 401,502 TOTAL LIABILITIES 1,107,635 1,053,642 NET ASSETS 13,317,198 17,417,108 Current Assets Cash and cash equivalents Assets held for sale 5 Total Current Assets Non-Current Assets Financial assets at fair value through other comprehensive income 6 Property, plant and equipment Exploration expenditure 7 Current Liabilities Total Current Liabilities Non-Current Liabilities EQUITY Issued capital 8 62,980,533 62,742,519 Option reserve 8 1,301,190 1,711,433 Financial asset reserve 9 29,250 (23,750) (1,161,069) (1,161,069) Accumulated losses (49,832,706) (45,852,025) TOTAL EQUITY 13,317,198 17,417,108 Transactions with non-controlling interest The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 7 of 19 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Balance at 1 July 2022 Issued capital Option reserve $ $ Transactions with nonFinancial asset controlling reserve interest $ $ Accumulated losses Total equity $ $ 58,426,867 1,406,016 72,500 (1,161,069) (40,187,297) 18,557,017 Loss for the period - - - - (2,015,967) (2,015,967) Other comprehensive income - - (13,750) - - (13,750) Total comprehensive loss for the half-year - - (13,750) - (2,015,967) (2,029,717) Fair value of options issued - 324,214 - - - 324,214 Fair value of options expired - (86,400) - - 86,400 - Balance at 31 December 2022 58,426,867 1,643,830 58,750 (1,161,069) (42,116,864) 16,851,514 Balance at 1 July 2023 62,742,519 1,711,433 (23,750) (1,161,069) (45,852,025) 17,417,108 Loss for the period - - - - (4,610,291) (4,610,291) Other comprehensive income - - 53,000 - - 53,000 Total comprehensive loss for the half-year - - 53,000 - (4,610,291) (4,557,291) Shares issued 240,000 - - - - 240,000 Share issue costs Transactions with owners in their capacity as owners Transactions with owners in their capacity as owners (1,986) - - - - (1,986) Fair value of options issued - 201,851 - - - 201,851 Fair value of performance rights issued - 17,516 - - - 17,516 Fair value of options expired - (629,610) - - 629,610 - 62,980,533 1,301,190 29,250 (1,161,069) (49,832,706) 13,317,198 Balance at 31 December 2023 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 8 of 19 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 CONSOLIDATED 31 Dec 2023 $ 31 Dec 2022 $ (1,069,724) (670,012) Interest received 79,546 6,891 Interest paid (11,493) - (1,001,671) (663,121) (10,904) - (1,575,810) (1,093,821) - 50,000 (1,586,714) (1,043,821) Share issue costs (1,986) - NET CASH FLOWS FROM FINANCING ACTIVITIES (1,986) - Net increase/(decrease) in cash and cash equivalents (2,590,371) (1,706,942) Cash and cash equivalents at beginning of the period 4,688,824 3,816,089 2,098,453 2,109,147 Notes CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for exploration activities Proceeds from the sale of tenements NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 4 The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 9 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation These general-purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. This interim report is intended to provide users with an update on the latest annual financial statements of Impact Minerals Limited and its controlled entities (the consolidated entity). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the consolidated entity. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the consolidated entity for the year ended 30 June 2023, together with any public announcements made during the half-year. Except for Note 1(b) the accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The half-year financial statements have been prepared on the historical cost basis, except where stated. For the purpose of preparing the half-year financial statements, the half-year has been treated as a discrete reporting period. b) New accounting standards and interpretations The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for an annual accounting period that begins on or after 1 July 2023. The adoption of the new and revised Standards and Interpretations have not had a material impact on this half-year financial report. c) Going Concern The interim financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Consolidated Group generated a loss for the period of $4,610,291 (2022: loss of $2,015,967) and net cash outflows from operating activities of $1,001,671 (2022: $663,121). As at 31 December 2023 the Consolidated Group had a cash balance of $2,098,453 (30 June 2023: $4,688,824). The ability of the Consolidated Group to continue as a going concern is principally dependent upon the ability of the Company to secure funds by raising capital from equity markets and managing cashflow in line with available funds. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern. In the event the above matters are not achieved, the Company will be required to raise funds for working capital from debt or equity sources. The directors have prepared a cash flow forecast which indicates that the Consolidated Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 10 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the directors are confident of the Company’s ability to raise additional funds as and when they are required. Should the Consolidated Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due. NOTE 2: SEGMENT REPORTING Management has determined that the Group has one material reportable segment, being mineral exploration in Australia. The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Managing Director) in allocating resources and have concluded at this time that there are no separately identifiable segments. NOTE 3: INTEREST AND OTHER INCOME Interest income Other income 31 Dec 2023 $ 31 Dec 2022 $ 77,974 - 22,192 5,000 77,974 27,192 31 Dec 2023 $ 30 Jun 2023 $ NOTE 4: CASH AND CASH EQUIVALENTS Cash at bank and on hand Short-term deposits HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 543,203 1,555,250 2,633,574 2,055,250 2,098,453 4,688,824 Page 11 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 NOTE 5: ASSETS HELD FOR SALE Tenements held for sale 31 Dec 2023 $ 30 Jun 2023 $ 1,782,037 3,277,513 1,782,037 3,277,513 In April 2022, the Company announced that it had sold Mining Lease ML 2386 to Peter Campbell FT Pty Ltd (“PCFT”) an unrelated Company for $30,000. The Company also granted PCFT an option (“Option”) to buy all of the shares in Blackridge Exploration Pty Ltd (“Blackridge” a wholly owned subsidiary of Impact). The assets of Blackridge are three exploration licences EPM26806, EPM27410 and EPM27571. PCFT paid the non-refundable Option Fee of $50,000 in August 2022 and has two years to exercise the Option. Upon exercise of the Option, PCFT will pay $350,000 for the shares in Blackridge and the Company will retain a 1% gross gold royalty after the first 5,000 ounces have been recovered from any of the tenements. At 30 June 2023 the Blackridge tenements were held at their fair value ($342,942). In February 2024 the Company executed a shareholders sale agreement that subject to final CP’s, completes the sale of 51% of the Commonwealth Project to Burrendong Minerals Limited with an earn in right to acquire a further 24% interest by meeting certain expenditure targets. Therefore, the Company has included that 51% at fair value for assets held for sale. NOTE 6: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Opening balance Additions Change in fair value Closing balance 31 Dec 2023 $ 30 Jun 2023 $ 126,250 222,500 - - 53,000 (96,250) 179,250 126,250 The fair value of listed financial assets at fair value through other comprehensive income has been determined directly by reference to published price quotations in an active market, with movement in fair value recognised in other comprehensive income. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 12 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 NOTE 7: EXPLORATION EXPENDITURE 31 Dec 2023 $ 30 Jun 2023 $ Opening balance Exploration expenditure incurred during the year Commonwealth Project Lake Hope Project acquisition costs Hopetoun Project Broken Hill Project Impairment expense 9,568,039 3,077,869 404,470 135,762 (3,595,998) 11,195,288 3,640,557 (994,601) (4,000,000) (273,205) Closing balance 9,590,142 9,568,039 Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. NOTE 8: ISSUED CAPITAL 31 Dec 2023 $ 30 Jun 2023 $ 62,980,533 62,742,520 Ordinary shares fully paid a) Movements in ordinary shares on issue HALF-YEAR ENDED 31 DEC 2023 No. $ YEAR ENDED 30 JUN 2023 No. $ 2,844,703,889 62,742,519 2,481,370,556 58,426,867 - Placement (a) - - 333,333,333 4,000,000 - Rights issue (b) - - 30,000,000 360,000 20,000,000 240,000 - (1,986) - (44,347) 2,864,703,889 62,980,533 2,844,703,889 62,742,519 At the beginning of the period - Placement (c) - Transaction costs At the end of the period (a) In March 2022, the Company raised $2,000,000 (before costs) via a placement of 166,666,667 new shares at an issue price of 1.2 cents each. (b) In June 2022 the Company completed a Renounceable Rights Issue raising $3,199,999 (before costs) via the issue of 290,908,970 new shares at an issue price of 1.1 cents each together with one free attaching listed option exercisable at $0.02 on or before 2 June 2024 for every two new shares subscribed for (145,454,389 Listed Options). A further 12,800,000 listed options were issued to the underwriter as part consideration for their services. (c) In August 2023 the Company issued 20,000,000 share to exercise the Lake Hope option. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 13 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 b) Movements in options and performance rights on issue HALF-YEAR ENDED 31 DEC 2023 No. $ YEAR ENDED 30 JUN 2023 No. $ At the beginning of the reporting period 426,254,389 1,711,433 365,754,389 1,406,016 Options issued - unlisted 30,000,000 201,851 85,000,000 422,717 Performance rights issued 137,000,000 17,516 - - Options expired (93,000,000) (629,610) (24,500,000) (117,300) 430,754,389 1,301,190 426,254,389 1,711,433 31 Dec 2022 $ 30 Jun 2022 $ Opening balance Financial assets at fair value through other comprehensive income (Note 6) (23,750) 72,500 53,000 (96,250) Closing balance 29,250 (23,750) At the end of the reporting period NOTE 9: FINANCIAL ASSET RESERVE Financial asset reserve NOTE 10: SHARE BASED PAYMENTS On 17 August 2023, 30,000,000 unlisted options were granted to the vendor of the Lake Hope project as payment of the option fee for the Lake Hope project. Directors (or their nominees) following shareholder approval at the 2022 Annual General Meeting. On 7 December 2022, 32,000,000 unlisted options were issued to employees under the Company’s Director and Employee Acquisition Plan. The fair value of options granted was determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk-free rate for the term of the option. The following table lists the model inputs for the options granted during the half-year ended 31 December 2023: HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Page 14 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Inputs Issue 52 Number of options 30,000,000 Exercise price $0.0112 Grant date 17 Aug 2023 Expiry date 1 December 2025 Vesting date Immediate Share price at grant date $0.014 Historical volatility 100% Risk-free interest rate 4.01% Expected dividend yield 0% The share-based payment expense for the half-year was $219,367 (2022: $324,214). NOTE 11: CONTINGENCIES There has been no change in contingent liabilities or assets since the annual reporting date. NOTE 12: COMMITMENTS In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligations of the Group are subject to the minimum expenditure commitments required as per the Mining Act 1978 (Western Australia), the Mining Act 1992 (New South Wales) and the Mineral Resources Act 1989 (Queensland) and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity of the relevant area of interest. As at the reporting date, there has been no material change in the commitments since 30 June 2023. NOTE 13: EARNINGS PER SHARE Basic profit/(loss) per share Half-year ended 31 Dec 2023 Cents Half-year ended 31 Dec 2022 Cents (0.16) (0.08) The following reflects the income and share data used in the calculations of basic profit/(loss) per share: Profit / (Loss) used in calculating basic earnings per share HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Half-year ended 31 Dec 2023 $ Half-year ended 31 Dec 2022 $ (4,610,291) (2,015,967) Page 15 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Weighted average number of ordinary shares used in calculating basic loss per share Half-year ended 31 Dec 2023 Number Half-year ended 31 Dec 2022 Number 2,852,155,944 2,481,370,556 Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The issue of potential ordinary shares is antidilutive when their conversion to ordinary shares would increase earnings per share or decrease loss per share from continuing operations. The calculation of diluted earnings per share has therefore not assumed the conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on earnings per share. NOTE 14: EVENTS SUBSEQUENT TO THE REP