The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms part of
For immediate release
Interim Financial Report for the six months ended
The Directors of
A copy of the European Metals Half Year Report is also available from the Company's website at www.europeanmet.com.
ENQUIRIES:
|
Keith Coughlan, Executive Chairman
Kiran Morzaria, Non-Executive Director
Sujana Karthik, Company Secretary |
Tel: +61 (0) 419 996 333 Email: keith@europeanmet.com
Tel: +44 (0) 20 7440 0647
Tel: +61 8 6245 2050 Email: cosec@europeanmet.com
|
|
James Joyce/Darshan Patel/ Gabriella Zwarts (Corporate Finance) Harry Ansell (Broking)
|
Tel: +44 (0) 203 829 5000
|
|
BlytheRay (Financial PR) Tim Blythe Megan Ray
|
Tel: +44 (0) 20 7138 3222
|
|
Chapter 1 Advisors (Financial PR - Aus) David Tasker
|
Tel: +61 (0) 433 112 936 |
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of
Directors
The following persons were Directors of
|
Mr Keith Coughlan |
Executive Chairman |
|
Mr Richard Pavlik |
Executive Director |
|
Mr Kiran Morzaria |
Non-Executive Director |
|
Ambassador Lincoln Bloomfield, Jr |
Non-Executive Director |
|
Ms Merrill Gray |
Non-Executive Director |
Company secretary
Mr Henko Vos (Resigned
Mr Vos was appointed as Company Secretary on
Ms Sujana Karthik (Appointed
Ms Karthik was appointed as Company Secretary on
Principal activities
The Group is primarily involved in the exploration activities of the Cinovec lithium project in the Czech Republic.
Results of Operations
The loss for the Group after providing for income tax amounted to
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group during the financial half-year.
Review of operations
Growing Macro Tailwinds for Lithium
The global transition to electric mobility and renewable energy storage continues to drive unprecedented demand for lithium. Within Europe, government and industry commitments to carbon neutrality, accelerated by the European Green Deal and the Fit for 55 package, are creating a strong policy environment for the rapid expansion of lithium-ion battery production.
In parallel, the implementation of the EU Critical Raw Materials Act (CRMA) has placed a clear focus on establishing secure, domestic supply chains for critical minerals. Lithium has been identified as essential for the green and digital transition, and projects such as Cinovec are expected to play a central role in achieving these targets. These macro tailwinds provide a favourable backdrop for the Project, underpinning long-term demand and pricing outlooks.
Cinovec Declared a
In
Cinovec Declared a Strategic Deposit by Czech Government
The Czech Government has further reinforced Cinovec's importance by designating it as a Strategic Deposit under the Czech Construction Code. This classification simplifies and expedites permitting, reduces bureaucratic burdens, and prioritises environmental reviews. It ensures that Cinovec's development will proceed with greater predictability and speed, supporting the
In
The funding will be applied to fast-track critical path items and ensure timely progress towards construction. Conditions tied to the grant, including submission of the Environmental Impact Assessment (EIA) by
Definitive Feasibility Study and Environmental Permitting
The DFS, led by DRA Global, is advancing across all workstreams and remains on track, targeted for completion in
Preparatory work for the EIA is underway, with submission targeted for year end. The EIA is a central component of both Czech permitting requirements and the conditions attached to the JTF grant. Together, the DFS and EIA represent critical milestones in transitioning Cinovec from development into construction readiness.
Preliminary Mining Permit Secured for Cinovec South
Following the reporting period, Geomet, the Company's subsidiary, was granted a Preliminary Mining Permit covering Cinovec South. Valid for eight years until 2033, the permit secures priority rights to apply for a Final Mining Permit and, when consolidated with existing permits, provides complete coverage of the Cinovec orebody.
This milestone ensures Cinovec is legally positioned to progress seamlessly into mining once construction is approved, consolidating development rights across the deposit.
Funding Pathway Secured to Complete DFS
During
This approach ensures that Cinovec remains fully funded through DFS completion while minimising shareholder dilution. The funding pathway reflects prudent financial management and reinforces the Company's commitment to delivering value from the Project.
Outlook
Cinovec continues to advance at a time when macro tailwinds, policy support, and market demand for lithium are intensifying. With
The Board believes that Cinovec's scale, location, ESG credentials, and institutional support combine to make it one of the most important critical minerals projects currently in development globally. The coming period will focus on completing the DFS, advancing permitting, and preparing for the construction phase, all against a backdrop of unprecedented lithium demand growth.
Matters subsequent to the end of the financial half-year
On
On
To support its funding obligations, the Company completed a placement of 18.75 million ordinary shares at an issue price of
In addition, subsequent to the end of the financial half year, the Group executed a sale agreement for Dukla loan originally advanced to Geomet in 2023 for the acquisition of land at Dukla, which had been contemplated as the site of the Lithium Chemical Plant. Following the decision to relocate the plant to Prunéřov, most of the Dukla land is no longer required. Consistent with the Group's strategy to minimise shareholder dilution, the sale agreement had been signed prior to the reporting date and the proceeds applied to the Cash Call.
No other matter or circumstance has arisen since
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report.
This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
On behalf of the Directors
|
|
|
___________________________ |
|
Keith Coughlan |
|
EXECUTIVE CHAIRMAN |
|
|
|
|
|
|
|
Statement of profit or loss and other comprehensive income |
|
For the half-year ended |
|
|
|
Consolidated |
|
|
|
Note |
30 June 2025 |
|
|
|
|
$ |
$ |
|
Finance Income |
|
406,643 |
377,490 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Share of loss of equity accounted investee |
4 |
(1,410,400) |
(1,486,398) |
|
Foreign exchange gain/(loss) |
|
76,852 |
98,769 |
|
Share based payments |
|
- |
1,366,048 |
|
Employee benefits expense |
|
(332,164) |
(309,418) |
|
Directors' fees |
|
(133,301) |
(148,404) |
|
Depreciation and amortisation expense |
|
(25,722) |
(25,736) |
|
Share registry and listing expenses |
|
(83,560) |
(70,067) |
|
Professional fees |
|
(812,531) |
(503,457) |
|
Audit fees |
|
(48,751) |
(58,160) |
|
Insurance expense |
|
(34,409) |
(35,293) |
|
Travel and accommodation |
|
(11,757) |
(95,263) |
|
Advertising and promotion |
|
(176,452) |
(168,260) |
|
Facility, advance fee and finance costs |
|
(5,872) |
(6,826) |
|
Other expenses |
|
(163,261) |
(185,629) |
|
|
|
|
|
|
Loss before income tax expense |
|
(2,754,685) |
(1,250,604) |
|
|
|
|
|
|
Income tax expense |
|
- |
- |
|
|
|
|
|
|
Loss after income tax expense for the half-year |
|
(2,754,685) |
(1,250,604) |
|
|
|
|
|
|
Other comprehensive profit |
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
Exchange differences on translating foreign operations |
|
720,158 |
(370,368) |
|
Exchange difference on translating investment in Geomet |
4 |
2,009,100 |
836,346 |
|
|
|
|
|
|
Other comprehensive profit for the half-year, net of tax |
|
2,729,258 |
465,978 |
|
|
|
|
|
|
Total comprehensive loss for the half-year |
|
(25,427) |
(784,626) |
|
|
|
Cents |
Cents |
|
|
|
|
|
|
Basic loss per share |
3 |
(1.33) |
(0.60) |
|
Diluted loss per share |
3 |
(1.33) |
(0.60) |
|
|
||||||
|
|
|
Consolidated |
|||||
|
|
Note |
30 June 2025 |
|
||||
|
|
|
$ |
$ |
||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
|
|
|
|
||||
|
Current assets |
|
|
|
||||
|
Cash and cash equivalents |
|
996,340 |
3,524,484 |
||||
|
Trade and other receivables |
|
793,289 |
349,385 |
||||
|
Other assets |
|
59,208 |
144,429 |
||||
|
Total current assets |
|
1,848,837 |
4,018,298 |
||||
|
|
|
|
|
||||
|
Non-current assets |
|
|
|
||||
|
Other assets |
|
30,785 |
30,075 |
||||
|
Right-of-use assets |
|
116,351 |
141,281 |
||||
|
Investment in associate |
4 |
26,074,527 |
22,881,546 |
||||
|
Advances to associate |
7 |
8,766,132 |
8,052,790 |
||||
|
Property, plant and equipment |
|
3,615 |
4,407 |
||||
|
Total non-current assets |
|
34,991,410 |
31,110,099 |
||||
|
|
|
|
|
||||
|
Total assets |
|
36,840,247 |
35,128,397 |
||||
|
|
|
|
|
||||
|
Liabilities |
|
|
|
||||
|
|
|
|
|
||||
|
Current liabilities |
|
|
|
||||
|
Trade and other payables |
8 |
2,183,504 |
325,624 |
||||
|
Employee benefits |
|
227,603 |
326,350 |
||||
|
Lease liabilities |
|
52,271 |
49,086 |
||||
|
Total current liabilities |
|
2,463,378 |
701,060 |
||||
|
|
|
|
|
||||
|
Non-current liabilities |
|
|
|
||||
|
Lease liabilities |
|
69,729 |
94,770 |
||||
|
Total non-current liabilities |
|
69,729 |
94,770 |
||||
|
|
|
|
|
||||
|
Total liabilities |
|
2,533,107 |
795,830 |
||||
|
|
|
|
|
||||
|
Net assets |
|
34,307,140 |
34,332,567 |
||||
|
|
|
|
|
||||
|
Equity |
|
|
|
||||
|
Issued capital |
5 |
58,886,707 |
58,886,707 |
||||
|
Reserves |
6 |
5,540,299 |
2,811,041 |
||||
|
Accumulated losses |
|
(30,119,866) |
(27,365,181) |
||||
|
|
|
|
|
||||
|
Total equity |
|
34,307,140 |
34,332,567 |
||||
|
|
|
Statement of changes in equity |
|
For the half-year ended |
|
|
Issued |
Share based |
Foreign currency |
Accumulated |
Total equity |
|
|
capital |
payment reserve |
translation reserve |
losses |
|
|
Consolidated |
$ |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
Balance at |
58,886,707 |
6,996,449 |
688,148 |
(30,088,063) |
36,483,241 |
|
|
|
|
|
|
|
|
Loss after income tax expense for the half-year |
- |
- |
- |
(1,250,604) |
(1,250,604) |
|
Other comprehensive profit for the half-year, net of tax |
- |
- |
465,978 |
- |
465,978 |
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the half-year |
- |
- |
465,978 |
(1,250,604) |
(784,626) |
|
|
|
|
|
|
|
|
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
Transfer from performance rights/options reserve |
- |
(3,973,486) |
- |
3,973,486 |
- |
|
Share-based payments |
- |
(1,366,048) |
- |
- |
(1,366,048) |
|
|
|
|
|
|
|
|
Balance at |
58,886,707 |
1,656,915 |
1,154,126 |
(27,365,181) |
34,332,567 |
|
|
Issued |
Share based |
Foreign currency |
Accumulated |
Total equity |
|
|
capital |
payment reserve |
translation reserve |
losses |
|
|
Consolidated |
$ |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
Balance at |
58,886,707 |
1,656,915 |
1,154,126 |
(27,365,181) |
34,332,567 |
|
|
|
|
|
|
|
|
Loss after income tax expense for the half-year |
- |
- |
- |
(2,754,685) |
(2,754,685) |
|
Other comprehensive profit for the half-year, net of tax |
- |
- |
2,729,258 |
- |
2,729,258 |
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the half-year |
- |
- |
2,729,258 |
(2,754,685) |
(25,427) |
|
|
|
|
|
|
|
|
Balance at |
58,886,707 |
1,656,915 |
3,883,384 |
(30,119,866) |
34,307,140 |
|
|
|
|
Consolidated |
|
|
|
Note |
30 June 2025 |
|
|
|
|
$ |
$ |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Payments to suppliers and employees |
|
(1,702,056) |
(1,652,575) |
|
Interest received |
|
215,892 |
378,390 |
|
Recharges for management services |
|
1,486,927 |
- |
|
|
|
|
|
|
Net cash from/(used in) operating activities |
|
763 |
(1,274,185) |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Payments for investments in associate |
4 |
(2,594,281) |
- |
|
|
|
|
|
|
Net cash used in investing activities |
|
(2,594,281) |
- |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Repayment of lease liabilities |
|
(16,507) |
(43,514) |
|
|
|
|
|
|
Net cash used in financing activities |
|
(16,507) |
(43,514) |
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(2,610,025) |
(1,317,699) |
|
Cash and cash equivalents at the beginning of the financial half-year |
|
3,524,484 |
4,727,375 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
81,881 |
114,808 |
|
|
|
|
|
|
Cash and cash equivalents at the end of the financial half-year |
|
996,340 |
3,524,484 |
|
|
|
Notes to the financial statements |
|
|
Note 1. Basis of preparation
a. Statement of compliance
The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 'Interim Financial Reporting'. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The half year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the annual report for the transitional year ended
b. Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except where applicable for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.
The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the Group's 2024 transitional annual financial report for the six-month period ended ended
c. Going concern
The Group's financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
At 30 June 2025, the Group had a cash position of
The Group's cash flow forecast to
The Directors nevertheless consider it appropriate to prepare the financial report on a going concern basis, having regard to the following:
|
- |
the Group has a net asset position of |
|
- |
the Group continues its focus on maintaining an appropriate level of corporate overheads in line with the available cash resources; |
|
- |
the Group's demonstrated ability to raise capital, including the |
|
- |
the completion of the refinancing of the Dukla loan, which will provide funding in time to meet the Group's cash call obligations. |
Based on these factors, the directors believe that it is appropriate to prepare the 30 June 2025 financial statements on a going concern basis.
In the event that the Company is not able to successfully complete any one or more of the aforementioned activities, it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts, nor to the amounts and classification of liabilities that might be necessary should the Company and the Group not continue as a going concern.
d. Changes in accounting policies, accounting standards and interpretations
The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's transitional annual consolidated financial statements for the year ended
e. Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the estimate is revised if it affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees and consultants by reference to the estimated fair value of the equity instruments at the date at which they are granted. These are expensed over the estimated vesting periods. Judgement has been exercised on the probability and timing of achieving milestones related to performance rights granted to Directors.
Recognition of deferred tax assets
Deferred tax assets relating to temporary differences and unused tax losses have not been recognised as the Directors are of the opinion that it is not probable that future taxable profit will be available against which the benefits of the deferred tax assets can be utilised.
Investment in associate
Control exists where the parent entity is exposed or has the rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Power over the investee exists when it has existing rights to direct the relevant activities of the investee which are those which significantly affect the investee's returns. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant influence exists if the Group holds 20% or more of the voting power of an investee and has the power to participate in the financial and operating policy decisions of the entity.
Judgements are required by the Group to consider the existence of control, joint control or significant influence over an investee. The Group has considered its investment in Geomet concluding the Group has significant influence but not control or joint control. Control and joint control do not exist as the Group does not direct and does not have the power to direct the relevant activities of Geomet, this lies with the Geomet board, of which there are only 2 directors out of 5 in common with the Group, and Geomet CEO and CFO who are employed and work directly for Geomet.
Note 2. Operating segments
The accounting policies used by the Group in reporting segments are in accordance with the measurement principles of Australian Accounting Standards.
The Group has identified its operating segments based on the internal reports that are provided to the Board of Directors. According to AASB 8 Operating Segments, two or more operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, and the segments are similar in each of the following respects:
|
● |
The nature of the products and services; |
|
● |
The nature of the production processes; |
|
● |
The type or class of customer for their products and services; |
|
● |
The methods used to distribute their products or provide their services; and |
|
● |
If applicable, the nature of the regulatory environment, for example; banking, insurance and public utilities. |
Effective
Note 3. Loss per share
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Loss after income tax |
(2,754,685) |
(1,250,604) |
|
|
Number |
Number |
|
|
|
|
|
Weighted average number of ordinary shares used in calculating basic loss per share |
207,444,705 |
207,444,705 |
|
|
|
|
|
Weighted average number of ordinary shares used in calculating diluted loss per share |
207,444,705 |
207,444,705 |
|
|
Cents |
Cents |
|
|
|
|
|
Basic loss per share |
(1.33) |
(0.60) |
|
Diluted loss per share |
(1.33) |
(0.60) |
Potential ordinary shares of the Company consist of 6,000,000 options which were considered as being potentially dilutive at balance date.
In accordance with AASB 133 'Earnings per Share' these options have been excluded from the calculation of diluted loss per share due to their antidilutive effect and as such, diluted loss per share is equal to basic loss per share.
Note 4. Investment in associate
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Investments accounted for using equity method |
26,074,527 |
22,881,546 |
|
|
|
|
|
Reconciliation |
|
|
|
Reconciliation of the carrying amounts at the beginning and end of the current half-year and previous financial period are set out below: |
|
|
|
|
|
|
|
Opening carrying amount |
22,881,546 |
23,531,598 |
|
Share of loss - associates |
(1,410,400) |
(1,486,398) |
|
Share of the movement in foreign currency translation reserve - associates |
2,009,100 |
836,346 |
|
Increase in investment1 |
2,594,281 |
- |
|
|
|
|
|
Closing carrying amount |
26,074,527 |
22,881,546 |
|
(1) |
On |
Note 5. Issued capital
(a) Issued and paid up capital
|
|
Consolidated |
|||
|
|
30 June 2025 |
|
30 June 2025 |
|
|
|
Shares |
Shares |
$ |
$ |
|
|
|
|
|
|
|
Issued capital |
207,444,705 |
207,444,705 |
58,886,707 |
58,886,707 |
(b) Movements in shares
There have been no movements in shares during the half-year.
Note 6. Reserves
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Options reserve 6(a) |
716,290 |
716,290 |
|
Loan shares reserve 6(c) |
940,625 |
940,625 |
|
Foreign currency translation reserve 6(d) |
3,883,384 |
1,154,126 |
|
|
|
|
|
|
5,540,299 |
2,811,041 |
(a) Option reserve
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Balance at the beginning of the half-year |
716,290 |
418,000 |
|
Share based payment expense |
- |
298,290 |
|
Balance at the end of the half-year |
716,290 |
716,290 |
The following options existed as at
|
|
|
Balance at |
Issued during |
Exercised during |
Expired/ |
Balance at |
|
|
Expiry date |
|
the half-year |
the half-year |
the half-year |
30 June 2025 |
|
|
|
|
|
|
|
|
|
Options @ |
|
1,000,000 |
- |
- |
- |
1,000,000 |
|
Options @ |
|
5,000,000 |
- |
- |
- |
5,000,000 |
|
|
|
6,000,000 |
- |
- |
- |
6,000,000 |
(b) Performance rights reserve
|
|
30 June 2025 |
30 June 2025 |
|
|
|
|
Number |
$ |
Number |
$ |
|
|
|
|
|
|
|
Balance at the beginning of the half-year |
7,600,000 |
- |
7,300,000 |
1,664,338 |
|
Granted |
- |
- |
300,000 |
- |
|
Cancelled/Expired |
(7,400,000) |
- |
- |
- |
|
Movement1 |
- |
- |
- |
(1,664,338) |
|
Balance at the end of the half-year |
200,000 |
- |
7,600,000 |
- |
|
(1) |
Movement relates to reassessment of probability of performance rights by management during the 6 month period ended |
(c) Loan shares reserve
|
|
30 June 2025 |
30 June 2025 |
|
|
|
|
Number |
$ |
Number |
$ |
|
|
|
|
|
|
|
Balance at the beginning of the half-year |
1,350,000 |
940,625 |
1,350,000 |
1,442,667 |
|
Transfer to retained earnings |
- |
- |
- |
(502,042) |
|
Balance at the end of the half-year |
1,350,000 |
940,625 |
1,350,000 |
940,625 |
Loan shares granted in prior years and existed during the financial half-year ended
|
|
|
Repaid during the |
30 June 2025 |
|
|
Number |
half-year |
Number |
|
|
|
|
|
|
Director Loan shares |
1,350,000 |
- |
1,350,000 |
|
|
1,350,000 |
- |
1,350,000 |
No loan shares were granted/repaid during the financial half-year.
(d) Foreign currency translation reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign controlled subsidiary and the Group's share of foreign exchange movement in Geomet s.r.o.
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Balance at the beginning of the half-year |
1,154,126 |
688,148 |
|
Movement during the half-year |
2,729,258 |
465,978 |
|
Balance at the end of the half-year |
3,883,384 |
1,154,126 |
Note 7. Advances to associate
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Advances to associate |
8,766,132 |
8,052,790 |
On
Note 8. Trade and other payables
|
|
Consolidated |
|
|
|
30 June 2025 |
|
|
|
$ |
$ |
|
|
|
|
|
Trade payables |
390,940 |
165,745 |
|
Other payables |
1,792,564 |
159,879 |
|
|
|
|
|
|
2,183,504 |
325,624 |
Note 9. Related party transactions
Transactions between related parties are at arms' length and on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
During the half-year, the Company received a total of
The Company paid
From January to
On
There were no other transactions with related parties during the financial year.
Note 10. Contingent liabilities and commitments
Commitment - Geomet a.s. Cash Call
Subsequent to the reporting date, on
The Group made a payment of
Accordingly, as at
The Group has disclosed this as a commitment rather than recognising a liability in the financial statements as at
Contingent Liability - Dilution Risk
Under the Shareholders' Agreement, should the Group fail to meet its proportional share of any future cash calls from Geomet, its ownership interest in Geomet may be diluted in favour of those shareholders that do contribute, based on the fair market value of the shares represented by the unpaid cash call. As at the date of this report, no such dilution has occurred.
Other Commitments and Contingent Liabilities
There have been no other material changes in the Group's contingent liabilities or commitments since the last reporting date, other than those disclosed above.
Note 11. Events after the reporting period
On
On
To support its funding obligations, the Company completed a placement of 18.75 million ordinary shares at an issue price of
In addition, subsequent to the end of the financial half year, the Group executed a sale agreement for Dukla loan originally advanced to Geomet in 2023 for the acquisition of land at Dukla, which had been contemplated as the site of the Lithium Chemical Plant. Following the decision to relocate the plant to Prunéřov, most of the Dukla land is no longer required. Consistent with the Group's strategy to minimise shareholder dilution, the sale agreement had been signed prior to the reporting date and the proceeds applied to the Cash Call.
No other matter or circumstance has arisen since
In the directors' opinion:
|
● |
the attached 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; |
|
● |
the attached financial statements and notes give a true and fair view of the Group's financial position as at |
|
● |
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. |
Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.
On behalf of the directors
|
|
|
___________________________ |
|
Keith Coughlan |
|
EXECUTIVE CHAIRMAN |
|
|
|
|
INDEPENDENT AUDITOR'S REVIEW REPORT
To the members of
Report on the Half-Year Financial Report
Conclusion
We have reviewed the half-year financial report of
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:
i. Giving a true and fair view of the Group's financial position as at
ii. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the 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
We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor's review report.
Material uncertainty relating to going concern
We draw attention to Note 1(c) in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.
Responsibility of the directors for the financial report
The directors of the company 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 true and fair and 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. ASRE 2410 requires us to conclude whether 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 Group's financial position as at
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.
Glyn O'Brien
Director
Perth,
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