Announcement PDF KINGSTON RESOURCES LIMITED ABN 44 009 148 529 Half Yearly Financial Statements 31 December 2023 Kingston Resources Limited and its Controlled Entities Contents Page No. ➢ Corporate Directory ...................................................................................................................................... 2 ➢ Directors’ Report .......................................................................................................................................... 3 ➢ Auditor’s Independence Declaration .......................................................................................................... 12 ➢ Consolidated Statement of Financial Position ............................................................................................ 13 ➢ Consolidated Statement of Profit or Loss and Other Comprehensive Income ........................................... 14 ➢ Consolidated Statement of Cash Flows ..................................................................................................... 15 ➢ Consolidated Statement of Changes in Equity ........................................................................................... 16 ➢ Notes to the Financial Statements .............................................................................................................. 17 ➢ Directors’ Declaration ................................................................................................................................ 25 ➢ Independent Auditor’s Review Report ....................................................................................................... 26 1 CORPORATE DIRECTORY for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Corporate Directory DIRECTORS Mick Wilkes (B Eng (Hons), MBA, GAICD) Non-Executive Chairman Andrew Corbett, (B Eng (Mining, Hons), MBA, MAICD) Managing Director Anthony Wehby, (MAICD) Non-Executive Director Stuart Rechner, (BSc, LLB, MAIG, MAusIMM, GAICD) Non-Executive Director COMPANY SECRETARY Vinod Manikandan REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS 202/201 Miller Street North Sydney NSW 2060 AUSTRALIA Telephone Email Website (02) 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au AUDITORS Hall Chadwick (NSW) Chartered Accountants SHARE REGISTRY Automic Group BANKERS Australia & New Zealand Banking Group Limited Macquarie Group Limited Bank of South Pacific SOLICITORS Cowell Clarke Commercial Lawyers Ashurst Australia STOCK EXCHANGE Australian Securities Exchange (ASX) The home Exchange is in Perth, Western Australia Secondary Listing - Frankfurt Stock Exchange ASX CODE KSN 2 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Directors’ Report Your Directors submit their report for the half year ended 31 December 2023. DIRECTORS The names of the Company’s Directors in office during the half year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated. ➢ ➢ ➢ ➢ Mick Wilkes Andrew Corbett Anthony Wehby Stuart Rechner PRINCIPAL ACTIVITIES The Company is an Australian-based Company listed on the ASX. The principal activity of the Group during the period was mineral production and exploration. REVIEW OF OPERATING RESULTS AND OPERATIONS Operating Results Kingston reported a statutory net profit of $2,689,226 for the half year (2022:$1,343,790). Review of Operations Kingston commenced the half receiving strong support in its fully underwritten Share Purchase Plan (SPP), raising $1M before costs. This was subsequent to a placement at the end of June 2023, raising $5.5m. On the back of this, the company immediately commenced refurbishment of the processing plant and re-entry to the underground workings at the Mineral Hill mine. Initial work on the underground mine areas included a complete rehabilitation of the Eastern Decline Portal, as well as bolting, meshing and pumping down the decline. Access has now been re-established to the Southern Ore Zone (SOZ) access drive, where underground resource definition drilling is anticipated to commence later in calendar year 2024. 3 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Figure 1: Rehabilitated Eastern Decline portal at Mineral Hill. The design work for the refurbishment of the processing plant and costs relating to the development of the polymetallic Southern Ore Zone (SOZ) underground deposit in Mineral Hill is supported by the NSW government under the NSW Government CMAF1 funding of the Critical Minerals and High-Tech Metals Activation Fund – Project Activation Studies (see ASX Announcement on 22 November 2022). Major components were ordered early in the half for the refurbishment of the crushing, grinding and flotation circuits. Key work included the installation of a new electrical system, replacement of structural steel around the footings and conveyors, and significant cleanout and modifications of the fine ore bins. Figure 2: Mineral Hill plant - structural steel replacements and refurbished fine ore bin tunnels. 4 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Kingston has continued to produce gold and silver dore from the tailings reprocessing operation during the half. The company experienced some operational challenges related to equipment maintenance, disruptions to regional power supply from weather events and periods of elevated copper and lead impacting gold recoveries. Numerous performance improvement initiatives have been implemented, including adding an additional dozer to maintain equipment availability, upgrading the hydraulic motors on the dragflow and replacing the agitator blades in the processing plant. The company has also recruited a new manager for Assets and Special Projects to focus on dragflow performance and mill supply. The company is highly pleased with the rate of production and the level of cash flow from operations. Added tailwind support was received from commodity pricing, with the realised gold price increasing 3.8% half on half to $2,983/oz. The project is a foundational asset for the company, facilitating the transition to hard rock mining later in calendar year 2024. Tonnes Processed Grade Recoveries Gold Produced Gold Sales Silver Sales AISC Realised Gold Price Sales Operating Profit Units t g/t % oz oz oz A$/oz A$/oz A$m A$m Sep Q FY24 146,910 1.51 59% 4,229 4,167 5,154 1,837 2,933 $12.37 $4.78 DecQ FY24 136,531 1.34 58% 3,409 3,627 5,685 2,302 3,041 $11.20 $2.87 FY 24 YTD 283,441 1.43 59% 7,638 7,794 10,838 2,053 2,983 $23.57 $7.65 Exploration drilling was completed at numerous areas within the mining and exploration leases. The company identified 15 new and promising exploration targets from an induced polarisation geophysical survey to the southeast of Mineral Hill. Diamond and reverse circulation drill holes were completed for a 10-hole program. Additionally, geotechnical drilling was completed at Pearse North in preparation for open pit mining. The results returned numerous high-grade gold intercepts, validating the existing geological model and enhancing the Company’s confidence in the proposed mine plan. The most significant exploration and development work during the half was a near-mine discovery at SOZ (see ASX announcement on 1 November 2023). Surface diamond drill holes intersected two new mineralised structures in the footwall of the current Mineral Resource. Structure #2 was a brand-new lode, while Structure #1 was delineated with guidance from information in historical drilling. Significant assays over Structure #2 returned 12.5m @ 3.41% CuEq. These zones provide strong potential for expanding the Mineral Resource estimate at SOZ. 5 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Figure 3: Near mine discovery in KSNDDH017 (200mN cross-section, +-50m window). Additional surface drill holes were completed into SOZ to increase the confidence in the current Mineral Resource estimate. Key highlights include 5m @ 5.37% CuEq and 5.5m @ 3.83% CuEq. The mineralisation was observed exactly where the existing Mineral Resource is located, which has boosted the Company's confidence in the geological model for this area (See ASX announcement on 11 October 2023). Two surface RC holes completed at the Eastern Ore Zone also showed the potential to re-enter this portion of the underground development and produce high grade gold. Assay results confirmed the presence of a continuous lode that extends along strike and down-plunge. Among the key highlights was an interval of 3m @ 25.94g/t gold. This intersection is on the same structure as other insitu high grade gold hits. 6 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Figure 4: Long section view of Eastern Ore Zone (EOZ) showing extension potential. Misima Gold Project Kingston has been undertaking background environmental monitoring as part of the Environmental and Social Impact Assessment (ESIA), soil sampling activities, community and landownership studies as well as work to progress the Mining Licence application. The Company remains committed to realising the best value from the Misima Gold Project, which centres around bringing the project into production and creating prosperity for all stakeholders. The company has been in discussions with numerous interested parties in relation to potential partnerships and development arrangements. 7 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities MINERAL RESOURCES TABLE Mineral Hill (NSW, Australia) Table 1: Mineral Hill Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Resource Category Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt Measured Indicated Inferred Total 228 5,582 3,091 8,901 2.11 1.06 1.17 1.13 11 28 23 26 1.3% 1.2% 0.7% 1.0% 0.5% 1.7% 1.4% 1.6% 0.3% 1.1% 1.2% 1.1% 15 191 116 323 80 4,244 2,242 6,566 3 47 22 72 1.2 70 42 113 0.7 42 38 81 Table 2: Mineral Hill Mineral Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Reserve Proved Probable Total Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt 1,431 1,431 1.55 1.55 57 57 71 71 470 470 Misima Gold Project (PNG) Table 3: Misima Gold Project Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Deposit Umuna Total Resource Umuna TOTAL Cooktown Stockpile Cooktown Stockpile Ewatinona Total Resource Ewatinona TOTAL Misima Misima TOTAL Classificati on Indicated Inferred Cutoff g/t Au 0.3 0.3 Inferred 0.5 Indicated Inferred 0.3 0.3 Indicated Inferred Tonnes Mt 93.5 64.1 157.6 3.8 3.8 4.2 3.4 7.6 97.7 71.3 169 Gold g/t Au 0.78 0.58 0.70 0.65 0.65 0.88 0.74 0.81 0.79 0.59 0.71 Silver g/t Ag 4.3 3.8 4.1 7.0 7.0 2.6 3.2 2.8 4.3 3.8 4.1 Au Moz Ag Moz 2.4 1.2 3.6 0.1 0.1 0.12 0.08 0.2 2.5 1.4 3.8 13.1 7.5 20.5 0.9 0.9 0.3 0.3 0.7 13.4 8.7 22.1 Table 4: Misima Gold Project Ore Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Ewatinona Probable Ewatinona Total Umuna Probable Umuna Total Probable Misima Total Reserve Tonnes Mt Gold Au g/t Silver Ag g/t Au koz Ag koz 3.9 3.9 0.8 0.8 2.4 2.4 100 100 300 300 71.7 71.7 75.6 75.6 0.8 0.8 0.8 0.8 4.6 4.6 4.5 4.5 1,784 1,784 1,944 1,944 10,603 10,603 10,938 10,938 8 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities COMPETENT PERSON’S STATEMENT The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Stuart Hayward BAppSc (Geology) MAIG, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr. Hayward is an employee of the Company. Mr. Hayward 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. Hayward consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. The Competent Person signing off on the overall Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. Kingston publicly reports Exploration Results and Mineral Resource estimates in accordance with the ASX Listing Rules and the requirements and guidelines of the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves – the JORC Code. Kingston’s governance for public reporting of Exploration Results and Mineral Resource estimates includes important assurance measures. All reports are signed-off by appropriate JORC Competent Persons with JORC Code Table 1 Checklists as required. Exploration Results and Mineral Resource estimates are also peer reviewed (either by Kingston technical staff or suitably qualified external consultants) before Board approval and ASX release. FINANCIAL POSITION At 31 December 2023 the consolidated entity had net assets of $81,316,572 (30 June 202: $76,454,900) and $10,539,923 in cash (30 June 2023: $18,206,767). On 3 July 2023, the Company issued 52,941,176 Tranche 1 Placement shares at $0.085 raising $4,500,000 (before costs). On 31 July 2023, 4,561,810 LTI performance Options were converted to shares raising $45,618.10. On 17 August 2023: - the Company issued 11,764,705 shares at $0.085 to Quintana Holdings LLP under Tranche 2 of the Placement offer. These proceeds reduce the final deferred consideration payable to Quintana Holdings LLP required after producing 30,000ozs after the acquisition of Mineral Hill. - the Company issued 11,764,664 shares at $0.085 under a fully underwritten Share Purchase Plan raising $1,000,000 (before costs). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Other than reported above in the Review of Results and Operations, there were no significant changes in the state of affairs of the Company during the reporting period. DIVIDENDS There were no dividends paid, recommended, or declared during the current or previous financial half-years. 9 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities OPTIONS AND PERFORMANCE RIGHTS During the half-year ended 31 December 2023 Directors and employees of the Company were granted options and performance rights. Please see Note 9 for details. EVENTS AFTER THE BALANCE DATE There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods. 10 DIRECTORS’ REPORT for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 The Auditor’s Independence Declaration is set out on page 12 and forms part of the Directors’ Report for the half year ended 31 December 2023. Pursuant to section 306 Corporations Act 2001 this Directors’ Report: (a) is made in accordance with a resolution of the Directors; (b) is dated 1 March 2024; and (c) is signed by Mick Wilkes. On behalf of the directors . Mick Wilkes Chairman 1 March 2024 11 CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2023 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Financial Position Consolidated Group 31 December 2023 30 June 2023 $ $ Notes Current assets Cash and Trade andcash otherequivalents receivables Available for sale financial assets Inventory Other current assets Total current assets Non-current assets Property, plant and equipment Capitalised exploration expenditure Mine development expenditure Right of use assets Rehabilitation bond and security deposits Total non-current assets Total assets 5 4 4 7 Current liabilities Trade and other payables Interest bearing loan Lease liabilities Employee provisions Deferred payables Total current liabilities Non-current liabilities Borrowings Lease liabilities Rehabilitation provisions Employee provisions Total non-current liabilities Total liabilities Net assets Equity Issued capital Advanced Placement Fund (net) Accumulated losses Share Based Payment Reserve Foreign Currency Translation Reserve Total equity 10 7 8 10,539,923 522,664 337,900 2,077,877 979,646 14,458,010 18,206,767 1,315,211 269,150 3,030,080 278,752 23,099,960 23,006,106 48,346,384 19,901,175 842,143 7,434,960 99,530,768 113,988,778 17,256,109 46,079,669 16,650,984 935,006 7,399,044 88,320,812 111,420,772 8,602,119 711,460 375,608 590,721 5,796,602 16,076,510 7,907,917 42,796 360,334 539,486 9,579,789 18,430,322 8,961,786 290,715 7,274,000 69,195 16,595,696 32,672,206 81,316,572 8,822,176 400,687 7,274,000 38,687 16,535,550 34,965,872 76,454,900 127,070,130 (47,951,074) 2,046,468 151,048 81,316,572 121,170,385 3,867,452 (50,812,957) 2,043,126 186,894 76,454,900 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 13 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Group 31 December 2023 31 December 2022 $ $ Notes Continuing Operations Sales 23,640,552 17,869,158 14,863 11,097 Cost of sales (12,595,019) (9,842,618) Gross Profit 11,060,396 8,037,637 Administrative expenses (278,702) (206,866) Consultant and legal fees (123,594) (49,636) Other revenue 3 Amortisation expense 3 (716,184) (556,434) Depreciation expense 3 (1,757,049) (1,692,984) Director fees (179,184) (135,896) (3,627,591) (3,435,716) Share based payments expense (300,611) (158,301) Interest expense (666,100) (326,364) 68,750 (131,250) - (400) Foreign exchange loss (790,905) - Profit/(Loss) before income tax expense 2,689,226 1,343,790 Income tax expense - - Profit for the period 2,689,226 1,343,790 Other comprehensive income (35,845) (22,116) Total comprehensive income/(loss) for the period 2,653,381 1,321,674 Basic profit per share (cents) 0.55 0.33 Diluted profit per share (cents) 0.44 0.32 Employee expenses Mark to market of financial assets gain/(loss) Exploration expenditure Other comprehensive income The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 14 CONSOLIDATED STATEMENT OF CASH FLOWS 7 for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Cash Flows Consolidated Group 31 December 2023 31 December 2022 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Continued Operations Receipts from customers 23,695,187 Interest received 18,089,127 5,863 2,097 (460,095) (133,743) 9,000 9,000 - (400) (14,928,537) (14,140,810) 8,321,418 3,825,271 (2,224,326) (4,130,664) (36,108) (1,973,155) Payment for property, plant and equipment (5,680,765) (1,171,890) Payment for mine development (4,765,839) (1,417,719) - 175,000 Payment for acquisition of Mineral Hill Pty Ltd (3,648,274) - Proceeds from divestment of WesternX Pty Ltd - 1,500,000 (16,355,312) (7,018,428) Proceeds from issue of shares and options 1,045,618 22,570 Payments for lease (141,407) (138,966) Transaction costs related to issue of shares, convertibles, or options (167,159) (1,250) - 4,850,000 Repayment of borrowings (367,749) (288,437) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 369,303 4,443,917 Net change in cash and cash equivalents held (7,664,591) 1,250,760 Cash and cash equivalents at beginning of period 18,206,767 5,589,673 (2,253) 1,567 10,539,923 6,842,000 Interest paid Receipts from other income Payments for exploration and evaluation Payments to suppliers and employees NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration and evaluation Payment for bond deposits Payment from other entity NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from borrowings Effect of movement in exchange rates on cash held CASH AND CASH EQUIVALENTS AT END OF PERIOD The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 15 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Changes in Equity Consolidated Attributable to the shareholders of Kingston Resources Limited Advanced Placement Fund $ Ordinary Shares $ Accumulated Losses $ Foreign Exchange Reserves Share based payment Reserve $ Total Equity $ Balance at 1 July 2022 121,051,877 - (60,738,440) 206,788 609,952 61,130,177 Profit for the half year - - 1,343,790 - - 1,343,790 Total comprehensive income - - - (22,116) - (22,116) 121,051,877 - (59,394,650) 184,672 609,952 62,451,851 Issue of Shares 22,570 - - - - 22,570 Cost of share issue (2,500) - - - - (2,500) - - - - 660,475 660,475 Share based payments Transfer from share-based payment reserve on expiry/lapse/Issuance of options Balance at 31 December 2022 98,438 - 43,452 - (141,890) - 121,170,385 - (59,351,198) 184,672 1,128,537 63,132,396 Balance at 1 July 2023 121,170,385 3,867,452 (50,812,957) 186,894 2,043,126 76,454,900 Profit for the half year - - 2,689,226 - - 2,689,226 Total comprehensive income - - - (35,846) - (35,846) 121,170,385 3,867,452 (48,123,731) 151,048 2,043,126 79,108,280 Issue of Shares 2,068,176 - - - - 2,068,176 Advanced Placement Fund 4,500,000 (4,500,000) - - - - Cost of shares issued (440,529) 302,255 - - - (138,274) Share based payments Transfer from share-based payment reserve on expiry/lapse/Issuance of options Balance at 31 December 2023 (468,379) 330,293 - - 416,476 278,390 240,477 - 172,657 - (413,134) - 127,070,130 - (47,951,074) 151,048 2,046,468 81,316,572 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 16 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2023 Kingston Resources Limited and its Controlled Entities Notes to the Financial Statements 1. CORPORATE INFORMATION The financial statements of Kingston Resources Limited for the half year ended 31 December 2023 are authorised for issue in accordance with a resolution of the Directors on 1 March 2024. Kingston Resources Limited is a company incorporated in Australia and limited by shares listed on the ASX. The nature of the operations and principal activities of the Group are described in the Review of Operating Results and Operations included in the Directors’ Report and in Note 6 Segment Information. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The half year financial statements do not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. The half year financial statements should be read in conjunction with the annual Financial Statements of the Group as at 30 June 2023. It is also recommended that the half year financial statements be considered together with public announcements made by Kingston Resources and its controlled entities during the half year ended 31 December 2023 and up to the date of this report in accordance with the continuous disclosure obligations arising under the Corporations Act 2001. 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 requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. The interim financial statements are intended to provide users with an update on the latest annual financial statements of Kingston Resources Limited and its controlled entities (the Group). As such, it does not contain information that represents relatively insignificant changes during the half year within the Group. It is therefore recommended that these financial statements be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2023, together with any public announcements made during the half year and up to the date of this report. The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report. From 1 July 2023, the consolidated entity has adopted all Australian Accounting Standards and Interpretations effective for annual periods beginning on or before 1 July 2023. The adoption of new and amended standards and interpretations had no impact on the financial position or performance of the consolidated entity. The consolidated entity has not elected to early adopt any new standards or amendments that are issued but not yet effective. 17 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2023 b) Kingston Resources Limited and its Controlled Entities Going Concern The consolidated entity has earned an operating profit of $2,689,226 (2022: $1,343,790) and positive operating cash flows of $8,321,418 (2022: $3,825,271) for the half year ended 31 December 2023. As at 31 December 2023 the consolidated entity held cash of $10,539,923. During the period the following significant equity raisings were made: • On 27 June 2023, the Company announced its intention to undertake a two Tranche Share Placement offer raising a total of $5,500,000. On 30 June 2023, advanced placement monies totalling $4,500,000 were received under Tranche 1 of the Placement offer. On 3 July 2023, 52,941,176 Tranche 1 Placement shares were issued at $0. 085.On 17 August 2023, Tranche 1 of the Placement offer was completed upon issuing 26,245,576 unlisted attaching options expiring on 31 July 2025 with an exercise price of $0.14. • On 17 August 2023, the Company issued 11,764,705 shares at $0.085 to Quintana Holdings LLP under Tranche 2 of the Placement offer. These proceeds reduce the final deferred consideration payable to Quintana Holdings LLP upon the Company producing 30,000ozs since the acquisition of Mineral Hill. Tranche 2 Placement offer was completed upon issuing 5,882,352 unlisted attaching options expiring on 31 July 2025 with an exercise price of $0.14. • On 17 August 2023, the Company issued 10,247,017 shares at $0.085 under a fully underwritten Share Purchase Plan (SPP) raising $871,000 (before costs). In addition, 5,123,459 unlisted attaching options were issued expiring on 31 July 2025 with an exercise price of $0.14. • On 18 August 2023, the Company issued 1,517,647 SPP shortfall shares at $0.085 to sub underwriter Delphi Untemehmensberatung Akeingsellschaft an existing major shareholder and sophisticated investor raising $129,000 (before costs). The Share purchase plan was completed upon issuing 758,823 unlisted attaching options expiring on 31 July 2025 with an exercise price of $0.14. The nature of an exploration and early stage mining company is to have negative cashflow from operations, which requires the Company to raise equity as required. If the Group is unsuccessful in raising capital, a material uncertainty exists, that may cast significant doubt on the Group’s ability as a going concern and its ability to recover assets, and discharge liabilities in the normal course of business and at the amount shown in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Taking into account the current cash reserves of the Company, the Directors are confident the Company has adequate resources to continue in its main business activity for the foreseeable future. As a result, the financial statements have been prepared on the basis of going concern which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business and at the amounts stated in the financial report. c) New Accounting