REG - Artemis Resources Ld - Annual Report for Year Ended 30 June 2025
29/09/2025 07:30
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RNS Number : 1792B Artemis Resources Limited 29 September 2025
29 September 2025
Artemis Resources Limited
("Artemis" or the "Company")
Annual Report for Year Ended 30 June 2025
The Directors of Artemis Resources Limited (ASX and AIM: ARV) are pleased to
announce the Company's audited annual results for the year ended 30 June 2025.
An extract of the audited results is included in the announcement below and
the full Annual Report is available on the Company's website
at https://artemisresources.com.au/ (https://artemisresources.com.au/) .
This announcement was approved for release by the Board.
Artemis Resources Ltd
Jozsef Patarica, Executive Director info@artemisresources.com.au
Julian Hanna, Director
Zeus (Nomad & Broker)
Antonio Bossi / James Bavister / Tel: +44 20 3829 5000
Gabriella Zwarts
CHAIRMAN'S LETTER
Dear fellow Shareholders,
On behalf of the Directors of Artemis Resources Limited ("Artemis" or the
"Company"; ASX/AIM: ARV), a gold, copper and lithium focused resources company
with projects in Western Australia, and dual listed on ASX and the London
Stock Exchange, I am pleased to report on the activities of the Group for the
year ended 30 June 2025.
FY2025 saw significant on-field exploration as we expanded the footprint of
the Carlow mineralisation. Surface sampling at Titan and Thorpe prospects
yielded exceptional gold and copper assays. These results were followed up
with a Phase One drilling programme, targeting Marillion, Carlow East, and
Titan. Drilling commenced in February 2025 and was successful in
intersecting high grade gold in two areas, 600m east of the Carlow resource
and at Titan, 2km west of the Carlow resource. The drilling also resulted in
a new geological interpretation of the Carlow area which has opened potential
for additional gold mineralisation along strike and below previous drilling
and on previously untested shallow targets, notably at Titan where high grade
gold occurrences were reported from sampling of widely spaced outcrops during
2024.
Encouraged by these results we will in Q2 FY2026 undertake diamond drilling to
scope out potential for significant extensions to the Carlow Mineral Resource
which contains 374koz gold and 64,000t copper. At Titan we have commenced
shallow low-cost RC drilling of geophysical anomalies in areas with high-grade
surface gold occurrences and a brecciated host sequence near previous gold
mineralisation encountered in the Phase One programme.
In addition to the Carlow Project, in December 2024 Artemis applied for a
340km2 exploration licence to cover a large, interpreted intrusion (Cassowary
Intrusion) in a unique setting along a major crustal boundary, 450km east of
Kalgoorlie. This licence was granted in August 2025. The Cassowary
Intrusion is undrilled and has the potential to host intrusion related IOCG
type copper/gold mineralisation and other types of intrusion hosted
mineralisation. Post the reporting period, Artemis has expanded its holdings
to over 1,000km2 to cover other interpreted intrusions at the Cassowary
Project.
With the Cassowary Project showing significant early potential, the Company is
seeking to sell or joint venture its Paterson project which tenement surrounds
the Haverion 8moz Au deposit. We have also undertaken a number of studies
during the year to determine how to extract maximum value from the Radio Hill
processing plant.
In January 2025, we welcomed Julian Hanna as the Managing Director of
Artemis. Julian was instrumental in bringing the Cassowary project to
Artemis and in driving the exploration success we have achieved in the FY2025
year. I would like to thank fellow board members, the Artemis team in Perth
and on site in Karratha and the Company's advisers for their ongoing
contributions to the success of the Company.
To our shareholders, including existing and new shareholders who supported the
capital raises in February and September 2025, we appreciate your confidence
and commitment in Artemis which has allowed us to advance our valuable
projects and plan for an exciting programme of exploration in the year ahead.
Mr Guy Robertson
Executive Chairman
29 September 2025
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
Artemis Resources Limited ('Artemis") is a gold, copper and lithium focused
resource exploration company with projects in the West Pilbara, the Eucla
Basin and the Central Paterson Region of Western Australia. The Company's
assets include the Carlow Project Gold-Copper-Cobalt resource and Radio Hill
processing plant ("Radio Hill") located within 35km radius of Karratha, and
the Cassowary Copper/Gold Exploration Project located 450km east of
Kalgoorlie.
The primary focus during the year was on gold exploration, notably on the 100%
Carlow Tenement (E 47/1797-1). In addition, Artemis consolidated a
substantial tenement holding at the Cassowary Exploration Project (comprising
>1,000km2 in granted and applied tenements at ate of this report).
Figure 1. Artemis Resources tenements near Karratha
Karratha Gold Project (ARV 100%)
Carlow Tenement
Exploration activities during the year within the Carlow Tenement consisted of
detailed geological and structural mapping, geophysical interpretations and
selective rock chip sampling of surface quartz veins and chert outcrops at the
Titan Prospect in the central part of the Carlow Tenement.
This was followed by a diamond drilling program in February and March 2025
designed to test potential extensions of gold and copper mineralisation east
of the Carlow resource and to test below one of the surface gold occurrences
in the eastern part of the Titan Prospects (Titan East). This drilling
program was successful with elevated to high grade gold or copper reported in
all holes and a revised geological interpretation of the Carlow-Titan area
opening further potential.
Interpretations of the Carlow tenement which combine outcrop mapping, gravity
date, key structural elements and the location of high-grade surface gold
results announced in 2024 from selected rock chip sampling of outcrops are
shown in Figures 2 and 3. (Note: a list of Artemis ASX announcements
relating to rock chip samples referred to in this report is listed in the
report).
Figure 2. Simplified geological and structural interpretation of Carlow
Tenement showing the outline of Carlow resource model, three priority
satellite targets and four gravity anomalies (G1-G4) within the Titan with
prospect area. The long section is shown in Figure 4 in this report.
Figure 3. Gravity image of Carlow Tenement showing gravity-low feature at
Titan with selected gold assays from surface rock chip samples. Shows
outline of the Carlow resource model within an interpreted 4km long northwest
trending prospective zone, in red dash outline.
In addition to the drilling program during the March 2025 quarter, a review of
approximately 410 historic drill holes into the Carlow gold/copper deposit was
conducted to evaluate the potential for high grade gold extensions along
strike and below the current limit of drilling at the Carlow deposit.
This review concluded that potential high grade strike extensions to the
Carlow deposit may exist in the undrilled area (the 'Gap') extending >600m
between the eastern end of the Carlow resource and hole 25ARDD001 which
intersected 7m @ 2.9g/t Au (Refer to Figure 4).
The review also highlighted the potential for extensions below the resource
which is based on drilling down to 380m vertical depth. Only one historic
diamond hole (20CCDD003) has tested below the resource, intersecting 4m @
11.1g/t Au and 2.01% Cu above the interpreted contact of the Regal Thrust
(Refer to Figure 4). The potential for resource extensions below the
resource and above the interpreted Regal Thrust may extend >1km and is
effectively untested.
Figure 4. Schematic long section through Carlow Resource and Titan East
showing the location of hole 25ARDD001 and revised the geological model for
the area
Following the diamond drilling program in the Carlow-Titan area a revised
geological and structural interpretation was prepared and is summarised on
Figure 3. The main conclusions are:
Andover Intrusion previously interpreted to cut off the eastern end of the
Carlow resource is now interpreted as a flat lying sill overlying the Carlow
basalt hosting gold and copper
Regal Thrust which outcrops as a steep dipping chert ridge north and east of
Carlow and regarded as the gold conduit now interpreted as a shallow dipping
thrust below Carlow
Three holes at Titan East intersected elevated gold (peak 1m @ at 16.4g/t Au)
within chrome rich ultramafics overlying a previously unrecognised sequence of
altered sediments
Andover Lithium JV Project (ARV 50%)
On 3 April 2025, the Company announced Artemis and Greentech Metals had
executed a binding agreement to consolidate the lithium mineral rights to
their respective tenement holdings near Karratha in the West Pilbara. The
lithium mineral rights were combined into a lithium exploration joint venture
company called Andover Lithium Pty Ltd (Andover Lithium) with GreenTech and
Artemis each owning 50% of the shares of Andover Lithium.
Andover Lithium is the largest lithium exploration tenement package in the
West Pilbara covering over 420 km2 along strike from the Azure Minerals
lithium discovery. The tenement package represents a large portion of the
Karratha-Roebourne lithium corridor and includes six known lithium prospective
areas, four with significant outcropping spodumene bearing pegmatites.
Consolidation of the extensive lithium interests of GreenTech and Artemis
provides an opportunity to attract a major funding partner into the Andover
Lithium JV and will allow the two companies to focus on their core exploration
and resource expansion activities in the Karratha region, respectively for
copper/zinc and gold.
Despite current lithium market sentiment, GreenTech and Artemis believe the
lithium prospectivity of their combined tenements remains compelling. The
combined tenements contain undrilled outcropping lithium bearing pegmatites
within the same corridor which hosts the Tier 1 lithium pegmatite project
discovered by Azure Minerals which has a reported Exploration Target of 100 -
240Mt @ 1.0 - 1.5% Li2O 1 (#_ftn1) . The consolidation of the lithium
rights into a 50:50 joint venture is not anticipated to require substantial
management resources or material costs for either company.
Figure 5: Andover Lithium Joint Venture Tenements
Figure 6. Osborne tenement within Andover Lithium JV showing mapped pegmatites
and lithium soil anomalies
Paterson Gold Project
A strategic review of the Company's 100% owned Paterson Gold Project in
Western Australia continued with the aim to extract maximum value for
shareholders. Several options are currently being considered to advance the
Project, including joint ventures, third-party funding or sale.
Cassowary Copper-Gold Exploration Project
While the Karratha Gold Project is expected to continue as Artemis's core
asset, the Company strategy includes identifying other exploration targets
considered to have potential for discovery of major mineral deposits.
Priorities are for targets which can be acquired and tested at relatively low
cost and show potential for IOCG type copper/gold or intrusive hosted
nickel/copper/PGE deposits.
As part of this strategy, Artemis's subsidiary (KML No 2 Pty Ltd) applied for
a 340km2 exploration licence (E69/4266) in December 2024 to cover a large,
interpreted intrusion ("Cassowary Intrusion") below the Eucla Basin sediments,
440km east of Kalgoorlie (refer to figure 7). E69/4266 was granted on 11
August 2025, and the Company is awaiting sign-off of a negotiated Access
Agreement with the objective to commence a surface gravity survey and possibly
initial drilling prior to the end of December 2025.
The Cassowary Intrusion occurs in a rare geological setting, being located on
the margin of a wide, >400km long northeast trending crustal boundary
(Madura West Crustal Boundary) where the surrounding geological formations are
interpreted to be disrupted for kilometres by the intrusion. There is no
known drilling at Cassowary.
Exploration will test the potential for IOCG type copper/gold mineralisation
which may be associated with the intrusion. A high-resolution gravity survey
is planned to assist drill targeting.
The Madura West Crustal Boundary has attracted major companies: BHP Nickel
West previously explored for nickel, global copper producer Teck (Australia)
has applied for exploration licences south of Cassowary and niobium company
WA1 has applied for 2 exploration licences immediately south of Cassowary to
explore for IOCG type copper/gold deposits. (Refer WA1 website).
Figure 7. Magnetic image with Artemis granted exploration licence (E69/4266)
in yellow covering interpreted Cassowary Intrusion. Madura West crustal
boundary in black. Source: GSWA. Post the reporting period, KML No 2 Pty Ltd
applied for additional tenements to cover other interpreted intrusions and
targets east of the Madura Crustal Boundary. Refer to Figure 8 below.
Figure 8: Magnetic image 2 (#_ftn2) showing Madura Crustal Boundary,
interpreted rift zone, Artemis and WA1 Resources tenements and priority
targets within the area of Northern Intrusions. Source: TMI image from
Geoscience Australia survey P1208 (Eucla Basin 1, 2009) at 200 m line spacing.
Magnetic data locally enhanced to assist geological/structural interpretation
Artemis ASX announcements relating to surface rock chip results from the
Karratha Gold Project referred to in this announcement;
High grade rock chip gold assays, 12 June 2024
High grade gold vein discovery at Titan
prospect, 16 August 2024
High grade gold vein discovery at Titan
prospect amended, 16 August 2024
Titan prospect results - clarification
statement, 17 September 2024
Titan delivers further high-grade rock chip
results, 10 October 2024
New Regional Discovery High-Grade Cu, Au, Ag
Chapman Prospect, 6 December 2021
Caution regarding Forward Looking Information
This document contains forward looking statements concerning Artemis Resources
Limited. Forward looking statements are not statements of historical fact and
actual events and results may differ materially from those described in the
forward-looking statements as a result of a variety of risks, uncertainties
and other factors. Forward looking statements in this document are based on
Artemis's beliefs, opinions and estimates as of the dates the forward-looking
statements are made, and no obligation is assumed to update forward looking
statements if these beliefs, opinions or estimates should change or to reflect
other future developments.
COMPETENT PERSONS' STATEMENT
The information in this report that relates to exploration results is based on
and fairly represents information supporting documentation prepared by Mr
Julian Hanna, a Competent Person who is a member of the Australian Institute
of Mining and Metallurgy (AusIMM). Mr Hanna is the Managing Director of
Artemis Resources and 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 Hanna consents to the inclusion in
this report of the matters based on his information in the form and context in
which it appears.
TRADITIONAL OWNERS
Artemis would not be able to operate successfully without the support of the
Traditional Owners and the local communities in which we operate. We
continue to build trust and respect between Artemis and our key stakeholders
through transparency, listening, acting on concerns, and looking for
innovative and sustainable ways of ensuring that the Traditional Owners are
participating in the journey to explore and develop, responsibly and
sensitively. We are working closely with our Native Title holders to
identify mutually supportive initiatives which will see a growing range of
business and employment opportunities being developed and importantly ensuring
that the local community has the capability and opportunity to grow with the
Company.
FINANCIAL RESULTS AND CONDITION
The loss for the financial year ended 30 June 2025 attributable to members of
Artemis Resources Limited after income tax was $6,329,313 (2024:
$16,591,769). The loss includes a non-cash write-off of exploration
expenditure in the amount of $4,245,026 (2024: $nil).
On 1 April 2025, the Company and GreenTech Metals Limited executed a binding
agreement to consolidate the lithium mineral rights from their respective
tenement holdings into a new incorporated joint venture company, Andover
Lithium Pty Ltd, in which each party holds a 50% shareholding. Each partner
retains all other mineral rights over the tenements for which they are the
registered holder. At signing, each party transferred lithium exploration
tenements with a fair value of $1,850,000 to the joint venture; with the
difference between carrying values and this amount recognised as a gain on
contribution of $351,037.
The Group has a working capital surplus of $434,659 (2024: surplus of
$376,659) and had net cash inflows of $581,358 (2024: net cash outflows of
$1,128,535).
Subsequent to year end, the Company completed two capital raisings totalling
$4.925 million before costs. These funds are expected to support the
Company's planned exploration and working capital requirements.
BOARD CHANGES
George Ventouras, who had served as an Executive Director since 10 October
2023, resigned on 8 January 2025.
On 8 January 2025, Julian Hanna was appointed as Managing Director. Julian
was the co-founder and Managing Director of Western Areas Limited for 12 years
from 2000, followed by his appointment as Managing Director of Botswana copper
company MOD Resources Limited for seven years. He is a highly experienced
geologist and gold, copper and nickel industry executive.
In addition, the Board appointed two non-executive directors: Bruce Garlick on
5 April 2025 and Jozsef Patarica on 17 September 2025.
OPERATING AND FINANCIAL RISK
The Company's activities have inherent risk, and the Board is unable to
provide certainty of the expected results of activities, or that any or all
the likely activities will be achieved. The material business risks faced by
the Group that could influence the Group's prospects, and how the Group
manages these risks, are detailed below:
Operational risks
The Company may be affected by various operational factors. If any of these
potential risks eventuate, the Company's operational and financial performance
may be adversely affected. No assurances can be given that the Company will
achieve commercial viability through the successful exploration and/or mining
of its tenement interests. Until the Company can realise value from its
projects, it is likely to incur ongoing operating losses.
The operations of the Company may be affected by various factors, including
failure to locate or identify mineral deposits, failure to achieve predicted
grades in exploration and mining, operational and technical difficulties
encountered in mining, insufficient or unreliable infrastructure such as
power, water and transport, difficulties in commissioning and operating plant
and equipment, unanticipated metallurgical problems which may affect
extraction costs, adverse weather conditions, industrial and environmental
accidents, industrial disputes and unexpected shortages or increases in the
costs of consumables, spare parts, plant and equipment.
The Company's Mineral Resource estimates are made in accordance with the 2012
edition of the JORC Code. Mineral resources are estimates only. An estimate
is an expression of judgement based on knowledge, experience and industry
practice. Estimates which were valid when originally calculated may alter
significantly when new information or techniques become available. In
addition, by their very nature, resource estimates are imprecise and depend to
some extent on interpretations, which may prove to be inaccurate.
The tenements are at various stages of exploration, and potential investors
should understand that mineral exploration and development are speculative and
high-risk undertakings that may be impeded by circumstances and factors beyond
the control of the Company.
There can be no assurance that exploration of the tenements, or any other
exploration properties that may be acquired in the future, will result in the
discovery of an economic mineral resource. Even if an apparently viable
deposit is identified, there is no guarantee that it can be economically
exploited.
Further capital requirements
The Company's projects may require additional funding to progress
activities. There can be no assurance that additional capital or other types
of financing will be available if needed to further exploration or possible
development activities and operations or that, if available, the terms of such
financing will be favourable to the Company.
Native title and Aboriginal Heritage
There are areas of the Company's projects over which legitimate common law
and/or statutory Native Title rights of Aboriginal Australians exist. Where
Native Title rights do exist, the Company must obtain consent of the relevant
landowner to progress the exploration, development and mining phases of
operations. Where there is an Aboriginal Site for the purposes of the
Aboriginal Heritage legislation, the Company must obtain consents in
accordance with the legislation.
The Company's activities are subject to Government regulations and approvals
The Company is subject to certain Government regulations and approvals. Any
material adverse change in government policies or legislation in Western
Australian and Australia that affect mining, processing, development and
mineral exploration activities, export activities, income tax laws, royalty
regulations, government subsidiaries and environmental issues may affect the
viability and profitability of any planned exploration or possible development
of the Company's portfolio of projects.
Global conditions
General economic conditions may also affect the value of the Company and its
market valuation regardless of its actual performance.
Schedule of tenement holdings at end of Q4 CY2025. All are in Western
Australia
Tenement Project Holder Holding Status
E47/1797 Greater Carlow KML No 2 Pty Ltd 100% Live
E47/1746 Cherratta KML No 2 Pty Ltd 100% Live
E47/3719 Osbourne KML No 2 Pty Ltd 49% Live
P47/1972 Cherratta KML No 2 Pty Ltd 100% Live
M47/337 Radio Hill Fox Radio Hill Pty Ltd 100% Live
M47/161 Radio Hill Fox Radio Hill Pty Ltd 100% Live
E47/3361 Radio Hill Fox Radio Hill Pty Ltd 100% Live
L47/93 Radio Hill Fox Radio Hill Pty Ltd 100% Live
E45/5276 Central Paterson Elysian Resources Pty Ltd 100% Live
E69/4266 Madura West KML No 2 Pty Ltd 100% Pending
E69/4317 Madura West KML No 2 Pty Ltd 100% Pending
E69/4318 Madura West KML No 2 Pty Ltd 100% Pending
Carlow mineral resource estimate - Refer to Artemis ASX announcement 13
October 2022.
GENERAL INFORMATION
The consolidated financial statements cover Artemis Resources Limited as a
Group consisting of Artemis Resources Limited and the entities it controlled
at the end of, or during, the year. The financial statements are presented
in Australian dollars, which is Artemis Resources Limited's functional and
presentation currency.
Artemis Resources Limited is a listed public company limited by shares,
incorporated, and domiciled in Australia. Its registered and principal place
of business is:
Registered office
Level 2,
10 Ord Street
West Perth WA 6005
A description of the nature of the Group's operations and its principal
activities is included in the Directors' Report, which is not part of the
financial statements.
The financial statements were authorised for issued, in accordance with a
resolution of directors, on 26 September 2025. The directors have the
power to amend and reissue the financial statements.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2025
Other income 4 327,679 232,740
Finance income 5 14,996 7,638
Gain on contribution of exploration assets 16 351,037 -
Exploration expenditure written off 13 (4,245,026) (55,572)
Exploration expenditure expensed through profit or loss (77,941) -
Impairment of development assets - (12,128,289)
Marketing and business development costs (212,030) (483,090)
Personnel expenses 6 (806,018) (579,768)
Professional fees (558,119) (425,161)
Statutory fees (111,474) (163,197)
Occupancy costs (45,947) (29,359)
Travel expenses (40,545) (47,695)
Other general and administration expenses (40,882) (215,037)
Net fair value loss on revaluation of financial assets 12 (761,531) (2,666,250)
Depreciation expense (28,056) (35,406)
Amortisation expense (66,141) -
Other losses 7 (22,673) (3,323)
Finance costs 5 (6,642) -
Loss before income tax (6,329,313) (16,591,769)
Income tax expense 9 - -
Loss for the year (6,329,313) (16,591,769)
Other comprehensive loss, net of tax - -
Total comprehensive loss for the year (6,329,313) (16,591,769)
Total comprehensive loss attributable to owners
of the Company (6,329,313) (16,591,769)
Loss per share (cents per share)
Basic and diluted 8 (0.29) (1.00)
The above consolidated statement of profit or loss and other comprehensive
income should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
Assets
Cash and cash equivalents 10(a) 1,153,986 572,628
Trade and other receivables 11 117,369 46,177
Other financial assets 12 468,469 1,080,000
Prepayments 44,892 88,221
Total current assets 1,784,716 1,787,026
Capitalised exploration and evaluation 13 31,915,047 34,213,548
Development expenditure 14 509,950 3,042,873
Investment in incorporated joint venture 16 1,850,000 -
Property, plant, and equipment 15 67,541 34,335
Right-of-use assets 17 160,616 44,999
Term deposit 12 42,290 42,290
Total non-current assets 34,545,444 37,378,045
Total assets 36,330,160 39,165,071
Liabilities
Trade and other payables 18 1,212,435 1,335,006
Right-of-use lease liabilities 20 113,894 47,792
Employee benefits 6 23,728 27,569
Total current liabilities 1,350,057 1,410,367
Provisions 19 3,459,773 5,923,259
Right-of-use lease liabilities 20 49,505 -
Total non-current liabilities 3,509,278 5,923,259
Total liabilities 4,859,335 7,333,626
Net assets 31,470,825 31,831,445
The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
As at 30 June 2025
Equity
Share capital 21 125,661,826 120,237,759
Reserves 22 962,137 499,111
Accumulated losses (95,153,138) (88,905,425)
Total equity attributable to equity holders
of the Company 31,470,825 31,831,445
The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2025
Balance on 1 July 2023 117,396,554 389,358 - (72,420,854) 45,365,058
Loss after income tax expense for the year - - (16,591,769) (16,591,769)
Total comprehensive loss for the year - - (16,591,769) (16,591,769)
Transactions with owners in their capacity
as owners
Contributions of equity, net of transaction
costs (note 21) 2,988,152 - - - 2,988,152
Transfer to accumulated losses on expiry of options - (107,198) - 107,198 -
Share-based payments (note 22) (146,947) 216,951 - - 70,004
Balance on 30 June 2024 120,237,759 499,111 - (88,905,425) 31,831,445
Balance on 1 July 2024 120,237,759 499,111 - (88,905,425) 31,831,445
Loss after income tax expense for the year - - - (6,329,313) (6,329,313)
Total comprehensive loss for the year - - - (6,329,313) (6,329,313)
Transactions with owners in their capacity
as owners
Contributions of equity, net of transaction
costs (note 21) 5,424,067 - - - 5,424,067
Transfer to accumulated losses on expiry of options - (81,600) 81,600 -
Share-based payments (note 22) - 526,256 18,370 - 544,626
Balance on 30 June 2025 125,661,826 943,767 18,370 (95,153,138) 31,470,825
The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2025
Cash flows from operating activities
Receipts from customers 275,647 -
Receipts from joint venture partners 77,025 232,740
Cash paid to suppliers and employers (1,988,889) (2,045,331)
Interest received 14,996 7,639
Interest paid (6,642) (4,757)
Payments for exploration and evaluation (78,188) -
Net cash used in operating activities 10(b) (1,706,051) (1,809,709)
Cash flows from investing activities
Payments for financial assets at fair value through profit or loss 12 (150,000) -
Payments for capitalised exploration 13 (2,685,275) (2,453,488)
Net cash used in investing activities (2,835,275) (2,453,488)
Cash flows from financing activities
Proceeds from issue of shares 21 5,687,491 3,429,683
Repayment of right-of-use lease liability 17 (111,150) (109,924)
Payment of capital raising costs (453,657) (185,097)
Net cash from financing activities 5,122,684 3,134,662
Net increase / (decrease) in cash and cash equivalents 581,358 (1,128,535)
Effects of exchange rate fluctuations on cash held - (1,853)
Cash and cash equivalents on 1 July 572,628 1,703,016
Cash and cash equivalents on 30 June 10(a) 1,153,986 572,628
The above consolidated statement of cash flows should be read in conjunction
with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL REPORT
For the year ended 30 June 2025
1 MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial
statements are set out below. These policies have been consistently applied
to all the years presented, unless otherwise stated.
1.1 NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS
ADOPTED
The Group has adopted all the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ("AASB")
that are mandatory for the current reporting period.
Australian Accounting Standards and Interpretations that have recently been
issued or amended but are not yet mandatory, have not been early adopted by
the Group for the annual reporting period ended 30 June 2025. The Group has
not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
1.2 BASIS OF PREPARATION
These general-purpose financial statements have been prepared in accordance
with Australian Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ("AASB") and the Corporations Act 2001,
as appropriate for, for-profit oriented entities. These financial statements
also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board ("IASB").
Historical cost convention
The financial statements have been prepared under the historical cost
convention, except for, where applicable, the revaluation of financial assets
and liabilities at fair value through profit or loss, financial assets at fair
value through other comprehensive income, certain classes of property, plant,
and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain
accounting estimates. It also requires management to exercise its judgement
in the process of applying the Group's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are
disclosed in note 2.
1.3 PARENT ENTITY INFORMATION
In accordance with the Corporations Act 2001, these financial statements
present the results of the Group only. Supplementary information about the
parent entity is disclosed in note 27.
1.4 PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets and liabilities
of all subsidiaries of Artemis Resources Limited ("company" or "parent
entity") as of 30 June 2025 and the results of all subsidiaries for the year
then ended. Artemis Resources Limited and its subsidiaries together are
referred to in these financial statements as the 'Group'.
Subsidiaries are all those entities over which the Group has control. The
Group controls an entity when the Group is exposed to, or has rights to,
variable returns from its involvement with the entity and can affect those
returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date that
control ceases.
Intercompany transactions, balances, and unrealised gains on transactions
between entities in the Group are eliminated. Unrealised losses are also
eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method
of accounting. A change in ownership interest, without the loss of control,
is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the
non-controlling interest acquired, is recognised directly in equity
attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown
separately in the statement of profit or loss and other comprehensive income,
statement of financial position, and statement of changes in equity of the
Group. Losses incurred by the Group are attributed to the non-controlling
interest in full, even if that results in a deficit balance.
When the Group loses control over a subsidiary, it derecognises the assets
including goodwill, liabilities, and non-controlling interest in the
subsidiary together with any cumulative translation differences recognised in
equity. The Group recognises the fair value of the consideration received
and the fair value of any investment retained together with any gain or loss
in profit or loss.
1.5 CURRENT AND NON-CURRENT CLASSIFICATION
Assets and liabilities are presented in the statement of financial position
based on current and non-current classification.
An asset is classified as current when it is either expected to be realised or
intended to be sold or consumed in the Group's normal operating cycle, it is
held primarily for the purpose of trading, it is expected to be realised
within 12 months after the reporting date, or the asset is cash or cash
equivalent unless restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting date. All other assets
are classified as non-current.
A liability is classified as current when it is either expected to be settled
in the Group's normal operating cycle, it is held primarily for the purpose of
trading, it is due to be settle within 12 months after the reporting date, or
there is no unconditional right to defer the settlement of the liability for
at least 12 months after the reporting date. All other liabilities are
classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
1.6 GOING CONCERN
The consolidated financial statements have been prepared on a going concern
basis which contemplates continuity of normal business activities and
realisation of assets and settlement of liabilities in the normal course of
business. For the year ended 30 June 2025, the Group incurred an operating
loss of $6,329,313 and had net cash outflows from operating activities of
$1,706,051. On 30 June 2025, the Group had net assets of $31,470,825, with
total cash on hand of $1,153,986.
The directors believe that it is reasonably foreseeable that the Company and
Group will continue as a going concern 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 Company has raised $5,705,198 before costs, in new capital during
the year
· Directors are of the view that should the Company require additional
capital, it can raise further capital to enable the Group to meet schedule
exploration expenditure requirements
· The ability of the Group to scale back certain parts of its
activities that are non-essential to conserve cash; and
· The Group retains the ability, if required, to wholly or in part
dispose of interests in mineral exploration and assets.
Subsequent to year end, the Company completed a further capital raise
totalling $4,925,000 before costs. These funds are expected to support the
Company's planned exploration and working capital requirements in the medium
term. However, should the Company be unable to secure additional capital in
a sufficiently timely manner and/or reduce its expenditure profile, a material
uncertainty remains that may cast significant doubt as to whether the Company
and Group will continue as a going concern 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.
2 CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts in the
financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, revenue, and expenses.
Management bases its judgements, estimates and assumptions on historical
experience and on other various factors, including expectations of future
events, management believes to be reasonable under the circumstances. The
resulting accounting judgements and estimates will seldom equal the related
actual results. Judgements estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and
liabilities (refer to the respective notes) within the next financial year are
discussed below.
Exploration and evaluation, and development expenditure carried forward
The Group capitalises expenditure relating to exploration and evaluation, and
development, where it is considered likely to be recoverable or where the
activities have not reached a stage which permits a reasonable assessment of
the existence of reserves. While there are certain areas of interest from
which no reserves have been determined, the Directors are of the continued
belief that such expenditure should not be written off since feasibility
studies in such areas have not yet concluded.
2 CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(continued)
Exploration and evaluation, and development expenditure carried forward
(continued)
The recoverability of the carrying amount of mine development expenditure
carried forward has been reviewed by the Directors. In conducting the
review, the recoverable amount has been assessed by reference to the higher of
"fair value less costs of disposal" and "value in use". In determining value
in use, future cash flows are based on:
· Estimates of ore reserves and mineral resources for which there is a
high degree of confidence of economic extraction
· Estimate production and sales levels
· Estimated future commodity prices
· Future costs of production
· Future capital expenditure and/or
· Future exchange rates
Variations to expected future cash flows, and timing thereof, could result in
significant changes to the impairment test results, which in turn could impact
future financial results.
The fair value less costs of disposal was estimated by an independent
valuation expert using the 'cost approach'. The cost approach is based on
the proposition that an informed purchaser would pay no more for an asset than
the cost of providing a substitute with the utility as the subject asset.
Direct and indirect comparisons with sales prices considering the age and
condition of the asset is used to estimate the fair value of the asset. The
fair value is a level 3 input on the fair value hierarchy. Refer to note 14.
Site rehabilitation
The provision for site rehabilitation requires significant judgement in
estimating the timing and cost of future restoration activities. These
estimates include assumptions about discount rates, inflation, the expected
life and the extent of work required, all of which may change as circumstances
evolve.
During the year, management engaged an independent expert to reassess the
rehabilitation provision. Based on this review, the provision has been
updated to reflect revised cost estimates and current market assumptions.
The reassessment incorporated a discount rate of 4.21% and an inflation
assumption of 2.1%. Changes in these assumptions could result in material
adjustments to the provision. For example, a 1% change in the discount rate
would change the provision by approximately $300,000. Refer to note 19.
Depreciation
Judgement is applied in determining the useful lives and residual values of
property, plant and equipment. Estimates are based on expected usage,
technological developments and future economic benefits. Changes in these
assumptions may result in material adjustments to depreciation expense.
Refer to note 15.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined using a Black-Scholes model,
using the assumptions detailed in note 22.
2 CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(continued)
Fair value of financial instruments
Management uses valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with
how market participants would price the instrument.
Management bases its assumption on observable data as far as possible, but
this is not always available. In that case, management uses the best
information available. Estimated fair values may vary from the actual prices
that would be achieved in an arm's length transaction at the reporting date.
Refer note 23.
3 OPERATING SEGMENTS
Accounting Policy
Operating segments are presented using the 'management approach', where the
information presented is on the same basis as the internal reports provided to
the Chief Operating Decision Makers ('CODM'). The CODM, who is responsible
for allocating resources and assessing performance of the operating segments,
has been identified as the Board of Directors of Artemis Resources Limited.
For management purposes, the Group is organised into two operating segments
based on the operations each performs, being:
· Mineral exploration
· Development
The Board (who is identified as the CODM) monitors the Group based on actual
versus budgeted expenditure incurred by area of interest.
The internal reporting framework is the most relevant to assist the Board with
making decisions regarding the Group and its ongoing exploration activities.
During the year, the Group established an incorporated joint venture to
explore for lithium. As the joint venture has not yet commenced operations,
it does not constitute a separate operating segment. The Group's interest is
accounted for using the equity method (refer to note 16).
There have been no other changes to the basis of segmentation or the
measurement basis for the segment profit or loss since 30 June 2024.
3 OPERATING SEGMENTS (continued)
Segment information provided to the Board:
30 June 2025
Segment revenue - - - - 327,679 327,679
Fair value loss on financial assets - - - - (761,531) (761,531)
Gain on contribution of exploration assets 351,037 - - - - 351,037
Segment expenses (102,877) - - - (1,898,595) (2,001,472)
Project and exploration expenditure write off (903,531) (3,341,495) - - - (4,245,026)
Reportable segment loss (655,371) (3,341,495) - - (2,332,447) (6,329,313)
Reportable segment assets 26,994,563 - 1,850,000 5,567,751 1,917,846 36,330,160
Reportable segment liabilities (408,460) - - (3,459,773) (991,102) (4,859,335)
Additions to non-current assets 3,445,488 - 1,850,000 - 227,437 5,522,925
30 June 2024
Segment revenue - - - - 240,378 240,378
Fair value loss on financial assets - - - - (2,666,250) (2,666,250)
Segment expenses - - - - (1,982,036) (1,982,036)
Impairment - - - (12,128,289) - (12,128,289)
Project and exploration expenditure write off (55,572) - - - - (55,572)
Reportable segment loss (55,572) - - (12,128,289) (4,407,908) (16,591,769)
Reportable segment assets 25,223,384 8,314,519 675,645 3,042,873 1,908,650 39,165,071
Reportable segment liabilities - - - 5,923,259 1,410,366 7,333,626
Additions to non-current assets 1,653,912 350,825 209,674 221,097 - 2,435,508
3 OPERATING SEGMENTS (continued)
For monitoring segment performance and allocating resources between segments:
· All assets are allocated to reportable segments, other than corporate
office assets, and
· All liabilities are allocated to reportable segments, other than
Group entity liabilities
The CODM monitors cash, receivables, and payables position. This is the
information that the CODM receives and reviews to make decisions.
Geographical information
All the Group's operations and non-current assets are in Western Australia.
4 OTHER INCOME
Accounting Policy
Other income is recognised when the amount can be reliably measured and
control of the right to receive the income be passed to the Group.
Government grants relating to costs are deferred and recognised in the profit
or loss over the period necessary to match them with the costs that they are
intended to compensate.
Settlement of tenement sale agreement ((1)) 250,000 150,000
Sale of gold 25,647 -
Other sundry income 52,031 82,740
327,679 232,740
((1) ) On 27 June 2024, Karratha Metals Pty Ltd, a subsidiary of
the Company, executed a Deed of Settlement and Release with Archipelago
Nominees Pty Ltd following the sale of tenements sold in 2012/2013. Under
the terms of the agreement, the parties agreed to terminate the associated
royalties and mineral rights and release all claims in relation to the
tenement.
5 NET FINANCE INCOME
Interest income on deposits 14,996 7,638
Interest expense on financial liabilities measured at
amortised cost
Interest on right of use lease liabilities 20 (6,642) -
Net finance income 8,354 7,638
6 PERSONNEL EXPENSES AND EMPLOYEE BENEFITS
Accounting Policy
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual
long service leave expected to be settled wholly within 12 months of the
reporting date are measured at the amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits
The liability for annual and long service leave, not expected to settle within
12 months of the reporting date, are measured at the present value of expected
future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted
using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future
cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the
period in which they are incurred.
The table below sets out personnel costs expensed during the year.
Directors' remuneration ((1)) 24 724,295 506,709
Staff salaries 89,640 340,979
Superannuation 7,668 37,508
Annual leave 15,266 -
Other associated personnel expenses 5,113 -
Reversal of legacy employee accruals ((2)) (35,964) -
806,018 885,196
Expensed in capitalised exploration and evaluation - 305,428
Expensed in personnel expenses 806,018 579,768
806,018 885,196
((1) ) Director share-based payments expense of $166,915 is
included in Directors' Remuneration.
((2) ) The reversal relates to legacy employee entitlement accruals
in a dormant subsidiary following the closure of its office in prior years.
6 PERSONNEL EXPENSES AND EMPLOYEE BENEFITS (continued)
The table below sets out employee benefits at the reporting date.
Current
Salary accrual - 6,692
Superannuation - 6,143
Liability for annual leave 23,728 14,734
23,728 27,569
7 OTHER LOSSES
Loss on sale of property, plant, and equipment 5,540 -
Bad debt expense 9,633 -
Foreign exchange loss 7,500 3,323
22,673 3,323
8 LOSS PER SHARE
Accounting Policy
Basic earnings per share
Basic earnings per share is calculated by dividing the profit / (loss)
attributable to the owners of Artemis Resources Limited, 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.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to accounts for the after-income tax effect of
interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares.
8 LOSS PER SHARE (continued)
Basic and diluted loss per share
Loss after income tax attributable to owners of Artemis Resources Limited (6,329,313) (16,591,769)
Basic loss per share (0.29) (1.00)
Diluted loss per share (0.29) (1.00)
Weighted average number of ordinary shares
Issued ordinary shares on 1 July 1,764,196,149 1,569,918,371
Effect of shares issued 417,947,145 81,671,629
Weighted average number of ordinary shares on 30 June 2,182,143,294 1,651,590,000
9 INCOME TAX EXPENSE
Accounting Policy
The income tax expense or benefit for the period is the tax payable on that
period's taxable income based on the applicable income tax rate for each
jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment
recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences
at the tax rates expected to be applied when the assets are recovered or
liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
· When the deferred income tax asset or liability arises from the
initial recognition of goodwill or an asset or liability in as transaction
that is not a business combination and that, at the time of the transaction,
affects neither the accounting nor taxable profits, or
· When the taxable temporary difference is associated with interests in
subsidiaries, associates or joint ventures, and the timing of the reversal can
be controlled, and it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and
unused tax losses only if it is probably that future taxable amounts will be
available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are
reviewed at each reporting date. Deferred tax assets recognised are reduced
to the extent that it is no longer probable that future taxable profits will
be available for the carrying amount to be recovered. Previously
unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
9 INCOME TAX EXPENSE (continued)
Accounting Policy (continued)
Deferred tax assets and liabilities are offset only where there is a legally
enforceable right to offset current tax assets against current tax liabilities
and deferred tax assets against deferred tax liabilities, and they relate to
the same taxable authority on either the same taxable entity or different
taxable entities which intend to settle simultaneously.
Artemis Resources Limited ("the head entity") and its wholly owned Australian
subsidiaries have formed an income tax consolidated group under the tax
consolidation regime. The head entity and each subsidiary in the tax
consolidated group continue to account for their own current and deferred tax
amounts. The tax consolidated group has applied the 'separate taxpayer
within group' approach in determining the appropriate amount of taxes to
allocate to members of the tax consolidated group.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses, and assets are recognised net of the amount of, unless the
GST incurred is not recoverable from the tax authority. In this case it is
recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable
or payable. The net amount of GST recoverable from, or payable to, the tax
authority is included in other receivables or other payables in the statement
of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows
arising from investing or financing activities which are recoverable from or
payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST
recoverable from, or payable to, the taxation authority.
9 INCOME TAX EXPENSE (continued)
(a) Amounts recognised in profit or loss
Current tax expense - -
Deferred tax expense - -
Income tax expense - -
Numerical reconciliation of income tax expense to prima facie tax
payable
Loss from continuing operations before income tax (6,329,313) (16,591,769)
Tax at the Australian tax rate of 30% (2024: 30%) (1,898,794) (4,977,531)
Non-deductible expenses 194,426 831,438
Timing differences (86,488) 3,655,158
Tax losses utilised not brought to account 1,790,856 490,935
Income tax expense - -
Tax losses
Potential future income tax benefits attributed to tax losses,
not brought to account 14,949,548 12,766,220
All unused tax losses were incurred by Australian entities.
The benefit of these tax losses will only be obtained if:
i) future assessable income is derived of a nature and of an
amount sufficient to enable the benefit to be realised
ii) the conditions for deductibility imposed by tax
legalisation continue to be complied with
iii) no changes in tax legislation adversely affect the Group in
realising the benefit, and
iv) satisfaction of either the continuity of ownership or the
same business test.
9 INCOME TAX EXPENSE (continued)
(b) Unrecognised deferred tax assets and liabilities
Deferred tax liabilities have not been recognised in respect of the following
items:
Deferred tax assets
Tax losses carry forward 14,949,548 12,766,220
Employee benefits obligation 7,118 -
Provisions 1,037,932 1,776,977
15,994,598 14,543,197
Deferred tax liabilities
Capitalised exploration costs 8,632,856 10,264,063
Net unrecognised deferred tax assets 7,361,742 4,279,134
10 CASH AND CASH EQUIVALENTS
Accounting Policy
Cash and cash equivalents include cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to
known amounts of cash, and which are subject to an insignificant risk of
changes in value. For the statement of cash flows presentation purposes,
cash and cash equivalent also includes, bank overdrafts, which are shown
within borrowings in current liabilities on the statement of financial
position.
(a) Reconciliation of cash recorded in Statement of Financial
Position to Statement of Cash Flows
Cash and cash equivalents in the statement of cash flows 1,153,986 572,628
10 CASH AND CASH EQUIVALENTS (continued)
(b) Reconciliation of cash flows from operating activities
Cash flows from operating activities
Loss for the period (6,329,313) (16,591,769)
Adjustments for:
Exploration expenditure impaired 4,245,026 55,572
Impairment of development asset - 12,128,289
Gain on disposal of exploration assets (351,037) -
Net profit on foreign exchange translation (7) -
Equity-settled share-based payments 485,313 70,004
Depreciation and amortisation 94,197 123,906
Bad debts expense 9,633 -
Loss on disposal of property, plant, and equipment 5,540 -
Loss on revaluation of financial assets 761,531 2,666,250
Change in trade and other receivables (6,995) (53,584)
Change in prepayments and deposits 1,039 -
Change in trade and other payables (617,137) (408,377)
Change in employee benefits provision (3,841) -
Change in site restoration provision - 200,000
Net cash used in operating activities (1,706,051) (1,809,709)
(c) Changes in liabilities arising from financing activities
Opening balance 47,792 152,959
Net cash used in financing activities (111,150) (109,924)
Right-of-use lease liabilities 226,757 4,757
163,399 47,792
11 TRADE AND OTHER RECEIVABLES
Current
Amounts due from joint venture partners 104,447 31,150
Authorised government agencies 12,475 14,915
Other receivables 447 112
117,369 46,177
Other receivables are non-interest bearing. Note 23 includes disclosures
relating to the credit risk exposures and analysis relating to the allowance
for expected credit losses.
12 OTHER FINANCIAL ASSETS
Accounting Policy
Investments and other financial assets are initially measured at fair value.
Transaction costs are included as part of the initial measurement, except for
financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on
their classification. Classification is determined based on both the
business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless an accounting mismatch is being
avoided.
Financial assets are derecognised when the rights to receive cash flows have
expired or have been transferred and the Group has transferred substantially
all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part, or all, of a financial asset, the carrying
value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other
comprehensive income are classified as financial assets at fair value through
profit or loss. Typically, such financial assets will be either: (i) held for
trading, where they are acquired for the purpose of selling in the short-term
with an intention of making a profit, or a derivative; or (ii) designated as
such upon initial recognition where permitted. Fair value movements are
recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include
equity investments which the Group intends to hold for the foreseeable future
and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial
assets which are either measured at amortised cost or fair value through other
comprehensive income. The measurement of the loss allowance depends upon the
Group's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increase significantly since initial
recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.
12 OTHER FINANCIAL ASSETS (continued)
Accounting Policy (continued)
Where there has not been a significant increase in exposure to credit risk
since initial recognition, as 12-month expected credit loss allowance is
estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the
next 12 months. Where a financial asset has become credit impaired, or where
it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The
amount of expected credit loss recognised is measure on the probably weighted
present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other
comprehensive income, the loss allowance is recognised in other comprehensive
income with a corresponding expense through profit or loss. In all other
cases, the loss allowance reduces the asset's carrying value with a
corresponding expense through profit or loss.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial
assets which are either measured at amortised cost or fair value through other
comprehensive income. The measurement of the loss allowance depends upon the
Group's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increase significantly since initial
recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk
since initial recognition, as 12-month expected credit loss allowance is
estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the
next 12 months. Where a financial asset has become credit impaired, or where
it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The
amount of expected credit loss recognised is measure on the probably weighted
present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other
comprehensive income, the loss allowance is recognised in other comprehensive
income with a corresponding expense through profit or loss. In all other
cases, the loss allowance reduces the asset's carrying value with a
corresponding expense through profit or loss.
Current 468,469 1,080,000
Non-current 42,290 42,290
510,759 1,122,290
Listed ordinary shares - designated at fair value through
profit or loss 448,500 1,080,000
Unlisted options - designated at fair value through profit or loss 19,969 -
Deposits and bonds 42,290 42,290
510,759 1,122,290
12 OTHER FINANCIAL ASSETS (continued)
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and
previous financial year are set out below:
Balance on 1 July 2023 3,746,250 - 42,290 3,788,540
Fair value revaluation of 6,750,000 GRE shares at
$0.16 per share (2,666,250) - - (2,666,250)
Balance on 30 June 2024 1,080,000 - 42,290 1,122,290
Issue of 688,705 GRE shares at $0.08 per share ((1)) 55,096 - - 55,096
Gain on initial recognition of 688,705 GRE at
$0.085 per share 3,444 - - 3,444
Issue of 1,186,295 GRE shares at $0.08 per share ((1)) 94,904 - - 94,904
Issue of 937,500 free-attaching GRE options at fair
value of $0.04 per share ((2)) - 37,500 - 37,500
Loss on initial recognition of 1,186,295 GRE shares at
$0.074 per share ((2)) (7,118) - - (7,118)
Fair value revaluation of 8,625,000 GRE shares (777,826) - - (777,826)
Fair value revaluation of 937,500 GRE options - (17,531) - (17,531)
Balance on 30 June 2025 448,500 19,969 42,290 510,759
((1) ) The issue of 688,705 fully paid ordinary GRE shares were
calculated based on the capital raising announced in November 2024 (8 cents
per share). On the date of issue, the share price was 8.5 cents per share
resulting in a fair value gain of $3,444 on Day 1.
((2) ) The issue of 1,186,295 fully paid ordinary GRE shares
were calculated based on the capital raising announced in November 2024 (8
cents per share). On the date of issue, the share price was 7.4 cents per
share resulting in a fair value loss of $7,118 on Day 1.
Fair value movement on revaluation of fully paid listed shares 781,500 2,666,250
Fair value movement on revaluation of unlisted options (19,969) -
Net fair value loss on revaluation of financial assets 761,531 2,666,250
Refer to note 23 for further information on financial instruments.
13 CAPITALISED EXPLORATION AND EVALUATION
Accounting Policy
Exploration and evaluation expenditure incurred is capitalised as an
exploration and evaluation asset in respect of each separate area of interest
for which the rights of tenure are current, and where:
· Such expenditure is expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its
sale; or
· Exploration activities in the area of interest have not yet reached a
stage that permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in,
or relating to, the area are continuing.
Capitalised costs include costs directly related to exploration and evaluation
activities, such as acquisition of rights to explore, topographical,
geological, geochemical and geophysical studies, exploratory drilling,
trenching, sampling, and associated activities. General and administrative
costs are expensed as incurred.
When an area of interest is abandoned, or the directors decide that it is not
commercially viable, any accumulated costs in respect of that area are written
off in the period the decision is made.
Exploration and evaluation assets are assessed for impairment when facts and
circumstances suggest that the carrying amount may exceed its recoverable
amount. Any impairment loss is recognised as an expense in the statement of
profit or loss.
Once the technical feasibility and commercial viability of extracting a
mineral resource are demonstrable, the capitalised expenditure for the area of
interest is reclassified to development assets and is tested for impairment
before reclassification.
13 CAPITALISED EXPLORATION AND EVALUATION (continued)
Balance on 1 July 2023 3,138,859 28,915,845 32,054,704
Additions - 2,214,416 2,214,416
Impairment or write-offs - (55,572) (55,572)
Balance on 30 June 2024 3,138,859 31,074,689 34,213,548
Additions - 3,445,488 3,445,488
Transfer to investment in joint venture ((1)) 16 - (1,498,963) (1,498,963)
Exploration expenditure written off
current year ((2)) - (4,245,026) (4,245,026)
Balance on 30 June 2025 3,138,859 28,776,188 31,915,047
((1) ) During the year, KML No. 2 Pty Ltd, a subsidiary of the
Company, transferred its lithium rights into Andover Lithium Pty Ltd, a joint
venture with GreenTech Metals Limited, in which it holds a 50% joint venture
interest. Refer to note 16.
((2) ) Exploration expenditure written off during the year relates
to the Paterson project where Armada Mining Pty Ltd, a subsidiary of the
Company, relinquished non-prospective tenement blocks and the derecognition of
capitalised exploration and evaluation costs relating to tenements
surrendered.
14 DEVELOPMENT EXPENDITURE
Accounting Policy
Development Assets
Development assets comprise costs directly attributable to the development of
mining areas and are capitalised on an area-by-area basis one technical
feasibility and commercial viability have been established. Capitalised
development costs include acquisition costs, construction, installation, and
other expenditure necessary to prepare the assets for their intended use,
together with the initial estimate of rehabilitation obligations.
Items of property, plant and equipment used in development activities are
carried at cost less accumulated depreciation and impairment losses.
Capitalised development expenditure is not depreciated until the asset is
available for use, at which point it is depreciated over the useful life of
the related mine or area of interest on a units-of-production basis.
Impairment
Development assets are tested for impairment in accordance with AASB 136
Impairment of Assets whenever indicators of impairment exist. The
recoverable amount is determined as the higher of fair value less costs of
disposal and value in use, which requires judgement in estimating future cash
flows, commodity prices, operating and capital costs, discount rates and
inflation assumptions.
14 DEVELOPMENT EXPENDITURE (continued)
Accounting Policy
During the year, the Group engaged an independent expert to review the site
rehabilitation provision. The reassessment resulted in a reduction of the
estimated rehabilitation obligation, which has been reflected as a
corresponding reduction in the carrying amount of development expenditure.
An independent assessment of the Group's development asset was also undertaken
during the year. Based on this assessment, the recoverable amount exceeded
the adjusted carrying amount, and accordingly no impairment was recognised.
Opening balance 3,042,873 14,950,070
Additions - 21,092
Impairment - (12,128,289)
Transfer to property, plant, and equipment 15 (69,437) -
Change in site restoration estimates 19 (2,463,486) 200,000
Closing balance 509,950 3,042,873
15 PROPERTY, PLANT AND EQUIPMENT
Accounting Policy
Plant and equipment are stated at historical cost less accumulated
depreciation and impairment. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Depreciation is calculated on systematic basis to write off the net cost of
each item of property, plant, and equipment (excluding land) over its expected
useful life. The residual values, useful lives and deprecation methods are
reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease
or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected from its use. Gains and losses
between the carrying amount and the disposal proceeds are recognised in profit
or loss. Any revaluation surplus reserve relating to the item disposed of is
transferred directly to retained earnings / accumulated losses.
15 PROPERTY, PLANT AND EQUIPMENT (continued)
Field equipment - at cost 107,424 -
Less: accumulated depreciation (56,524) -
50,900 -
Computer and office equipment - at cost 106,970 165,685
Less: accumulated depreciation (100,715) (151,044)
6,255 14,641
Mobile equipment and motor vehicles - at cost 51,683 55,955
Less: accumulated depreciation (41,297) (36,261)
10,386 19,694
67,541 34,335
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Balance on 1 July 2023 - 30,031 27,235 22,541
Additions - - - 117,250
Disposals - - (4,807) (105)
Depreciation expense - (10,337) (7,787) (27,061)
Balance on 30 June 2024 - 19,694 14,641 34,335
Transfer from capitalised development 69,437 - - 69,437
Additions - - 680 680
Disposals (15,578) (4,272) (59,394) (79,244)
Depreciation write-back on disposals 8,877 5,301 56,211 70,389
Depreciation expense (11,836) (10,337) (5,883) (28,056)
Balance on 30 June 2025 50,900 10,386 6,255 67,541
16 INCORPORATED JOINT VENTURE
Accounting Policy
Interests in incorporated joint ventures are accounted for using the equity
method in accordance with AASB 128 Investments in Associates and Joint
Ventures. Under the equity method, the investment is initially recognised at
cost and adjusted thereafter for the Company's share of the joint venture's
profit or loss and other comprehensive income.
The cost of the investment includes the fair value of assets transferred to
the joint venture. Any difference between the carrying amount of the assets
transferred and their fair value at the date of contribution is recognised in
profit or loss.
The Company's share of the joint venture's results is recognised from the date
on which joint control commences until the date that it ceases.
Distributions received from the joint venture reduce the carrying amount of
the investment.
On 1 April 2025, the Company and GreenTech Metals Limited (GRE) executed a
binding agreement to consolidate the lithium mineral rights from their
respective tenement holdings into a newly incorporated joint venture company,
Andover Lithium Pty Ltd ("Andover"), each holding 50% of the issued shares.
The Osborne Joint Venture currently in place between the parties (51% Artemis,
49% Artemis) retains all mineral rights other than gold and lithium. Artemis
retains all other mineral rights over the tenements for which the Company is
the registered holder, and any other mineral recovered.
The Company contributed lithium exploration assets to Andover with a carrying
value of $1,498,963. An independent valuation determined the fair value of
the joint venture at $3,700,000, with each party's interest valued at
$1,850,000.
Accordingly, the Company recognised:
· An investment in Andover of $1,850,000, and
· A gain on contribution of $351,037 in the statement of profit or loss
for the year ended 30 June 2025.
The investment is accounted for using the equity method.
As Andover had not commenced operations or incurred any expenditure by 30 June
2025, no share of results has been recognised during the reporting period.
The carrying value will be reviewed at each reporting period. Future
contributions or recognition of the Company's share of Andover's results will
be reflected once operational activity commences.
16 INCORPORATED JOINT VENTURE (continued)
Summarised Financial Information of Andover Lithium Pty Ltd
Total Assets 3,700,000 -
Total Liabilities - -
Net Assets 3,700,000 -
Issued Capital 3,700,000 -
Retained Earnings - -
Total equity 3,700,000 -
Profit / (loss) for the year - -
Total comprehensive income / (loss) for the year - -
17 RIGHT-OF-USE ASSETS
Accounting Policy
A right-of-use asset is recognised at the commencement date of a lease. The
right-of-use asset is measured at cost, which comprises the initial amount of
the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any
initial direct costs incurred, and, except when included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the
unexpired period of the lease or the estimated useful life of the asset,
whichever is the shorter. Where the Group expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its
estimated useful life. Right-of-use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding
lease liability for short-term leases with terms of 12 months or less and
leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
Land and buildings - right of use 226,757 150,781
Less: accumulated depreciation (66,141) (105,782)
160,616 44,999
Additions to the right-of-use assets during the year were $226,757.
The Group leases land and buildings as a storage facility for its field
equipment and has various exploration tenement leases under agreements of
between five and fifteen years with, in some cases, options to extend. The
leases have various escalation clauses. On renewal, the terms of the leases
are renegotiated.
18 TRADE AND OTHER PAYABLES
Current
Trade payables 647,621 238,112
Other payables and accrued expenses 564,814 868,069
Cash received in advance of share issue - 256,394
1,212,435 1,362,575
Refer to note 23 for further information on financial instruments.
19 SITE REHABILITATION PROVISION
Accounting Policy
Provisions for the costs of rehabilitation, decommissioning and restoration of
the area disturbed during mineral exploration and development activities
depends on the legal requirements at the date of decommissioning, the costs
and timing of work and the discount rate applied.
The initial estimate of rehabilitation and restoration costs is capitalised as
part of the cost of the related development asset and amortised over the life
of the related mine or plant. The provision is measured at the present cost
of future expenditures, with the unwinding of the discount recognised as a
finance costs.
Subsequent changes in estimated restoration costs or in discount rates are
adjusted against the carrying value of the development asset, unless that
asset has been written down below its recoverable amount, in which case, any
excess is recognised immediately in profit or loss.
Opening balance 5,923,259 5,723,259
Adjustment to provision recognised against development asset 14 (2,463,486) 200,000
3,459,773 5,923,259
During the year, management engaged an independent expert to reassess the
Group's site rehabilitation obligation. Based on this review, the estimated
provision was revised downward by $2,463,486. The revision reflects updated
cost estimates, timing of expected closure, and revised discount and inflation
assumptions.
Key assumptions applied in determining the provision are as follows:
· Expected rehabilitation years: 2025 to 2035
· Discount rate: 4.21%
· Inflation rate: 2.1%
· Source of estimates: independent expert engaged in June 2025
20 LEASE LIABILITIES
Accounting Policy
A lease liability is recognised at the commencement date of a lease. The
lease liability is initially recognised at the present value of the lease
payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the
Group's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that
depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the
option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that to not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest
method. The carrying amounts are remeasured if there is a change in the
following:
· future lease payments arising from a change in an index, or a rate
used
· residual guarantee
· lease term, or
· certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is made to the
corresponding right-of-use asset, or to profit or loss if the carrying amount
of the right-of-use asset is fully written down.
20 LEASE LIABILITIES
Opening balance 47,792 152,959
Recognition of lease liabilities 226,757 -
Interest charged 6,642 4,757
Interest repaid (6,642) (4,757)
Less principal repayments (111,150) (105,167)
Lease liabilities included in the consolidated statement
of financial position 163,399 47,792
Current 113,894 47,792
Non-current 49,505 -
163,399 47,792
Refer to note 23 for further information on financial instruments.
21 SHARE CAPITAL
Accounting Policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Issued capital
Balance on 1 July 1,764,196,149 1,569,918,371 120,237,759 117,396,554
Issue of fully paid shares for cash 727,114,848 194,277,778 5,942,862 3,173,250
Issue of shares in satisfaction of
service provider fees ((1)) 42,861,168 - 300,028 -
Issue of shares as bonus director fees ((2)) 1,500,000 - 25,000 -
Capital raising costs - - (843,823) (332,045)
Balance on 30 June 2,535,672,165 1,764,196,149 125,661,826 120,237,759
((1) ) 42,861,168 ordinary shares were issued to suppliers in
settlement of trade payables totalling $300,028. The issue price of $0.007
per share was consistent with the Company's capital raisings in December 2024
and February 2025.
((2) ) 1,500,000 ordinary shares were issued to a director as part
of a contractual bonus arrangement. These shares had a deemed fair value of
$25,000, recognised as an expense in accordance with AASB 2 Share-based
payments. Further details are set out in note 22.
Ordinary shares entitle the holder to participate in dividends and the
proceeds on the winding up of the company in proportion to the number of and
amounts paid on the shares held. The fully paid ordinary shares have no par
value, and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy
shall have one vote and upon a poll each share shall have one vote.
There is no current on-market share buy-back.
Reserves
Share-based payments reserve
The share-based payments reserve represents the fair value of shares to be
issued to directors, consultants, and employees. This reserve will be
transferred to capital once the shares are issued. Refer to note 22.
22 SHARE-BASED PAYMENTS
Accounting Policy
Equity-settled and cash-settled share-based compensation benefits are provided
to employees.
Equity-settled transactions also include the issue of shares to employees,
directors or consultants in exchange for services. Where shares are issued,
the fair value is measured at the grant date, based on the Company's share
price (or the volume weighted average price over a specified period, where
applicable). The fair value of shares issued is recognised as an expense in
the period in which the related services are rendered, with a corresponding
increase in equity.
Equity-settled transactions are awards of shares, or options over shares, that
are provided to employees in exchange for the rendering of services.
Cash-settled transactions are awards of cash for the exchange of services,
where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions is measured at fair value on grant
date. Fair value is independently determined using the Black-Scholes option
pricing model that considers the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the
risk-free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the Group receives the services that
entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions is recognised as an expense with a
corresponding increase inequity over the vesting period. The cumulative
charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vet
and the expired portion of the vesting period. The amount recognised in
profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date
until vested, determined by applying the Black-Scholes option pricing model,
taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the
liability is calculated as follows:
· during the vesting period, the liability at each reporting date is
the fair value of the award at that date multiplied by the expired portion of
the vesting period
· from the end of the vesting period until settlement of the award, the
liability is the full fair value of the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate
cost of cash-settled transactions is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value.
Therefore, any awards subject to market conditions are considered to vest
irrespective of whether that market condition has been met or not, provided
all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised
as if the modification has not been made. An additional expense is
recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at
the date of modification.
22 SHARE-BASED PAYMENTS (continued)
Accounting Policy
If the non-vesting condition is within the control of the Group or employee,
the failure to satisfy the condition is treated as a cancellation. If the
condition is not within the control of the Group or employee, and is not
satisfied during the vesting period, any remaining expense for the award is
recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on
the date of cancellation, and any remaining expense is recognised
immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
The share-based payment expense included within the consolidated financial
statements can be broken down as follows:
Expensed in Personnel Expenses and Other Employee Benefits
Options issued to directors 141,915 -
Shares issued to directors ((1)) 25,000 -
Expensed in Professional Fees
Shares to be issued to consultants ((2)) 18,370 70,004
Expensed in Statement of Financial Position
Capital raising costs 384,341 146,947
569,626 216,951
((1) ) 1,500,000 ordinary shares were issued to a director under a
contractual bonus arrangement. The fair value of the shares at grant date
was determined with reference to the VWAP of the Company's shares, being
$0.167 per share
((2) ) On 17 February 2025, the Company entered an arrangement with
a consultant under which ordinary share with a total fair value of $25,000
will be issued at the end of a six-month vesting period ending on 17 August
2025. An expense of $18,370 has been recognised on 30 June 2025,
representing the pro-rata portion of the vesting period completed. The
remaining $6,630 will be recognised in the 2026 financial year.
22 SHARE-BASED PAYMENT PLANS (continued)
Share-based payment programme
The Company has adopted an Employee Share Option Scheme ("ESOS"). Under the
ESOS, the Company may grant options and rights to Company eligible employees
to acquire securities to a maximum of 10% of the Company's total issued
ordinary shares at the date of the grant. The fair value of share options
granted is measured using the Black Scholes option pricing model.
The options and rights vest on a time scale as specified in the ESOS and are
granted for no consideration. Options and rights granted under the plan
carry no dividend or voting rights. When exercisable, each option is
converted into one ordinary share. The maximum term of an option is 5 years
from grant date, and the exercise price is settled in cash.
Options will not be transferable and will not be listed on the ASX unless the
offer provides otherwise or the Board in its absolute discretion approves.
Options
On 30 June 2025, a summary of the Group options issued and not exercised under
the share-based payment programme are as follows. Options are settled by the
physical delivery of shares:
01-Jul-22 01-Jul-22 31-Jul-25 5.0 2,000,000 - - - 2,000,000 2,000,000
05-Sep-22 05-Sep-22 31-Jul-25 5.0 3,000,000 - - - 3,000,000 3,000,000
08-Mar-23 08-Mar-23 09-Mar-26 2.5 17,000,000 - - - 17,000,000 17,000,000
28-Oct-23 28-Oct-23 09-Mar-26 2.5 11,000,000 - - - 11,000,000 11,000,000
29-Oct-23 29-Oct-23 09-Mar-26 2.5 5,000,000 - - - 5,000,000 5,000,000
28-Apr-24 28-Apr-24 31-Jul-25 5.0 2,000,000 - - - 2,000,000 2,000,000
30-Sep-24 30-Sep-24 09-Mar-26 2.5 - 35,000,000 - - 35,000,000 35,000,000
25-Nov-24 20-Dec-24 20-Dec-27 2.0 - 15,000,000 - - 15,000,000 15,000,000
10-Feb-25 25-Feb-25 20-Dec-27 2.0 - 10,000,000 - - 10,000,000 10,000,000
10-Feb-25 06-Mar-25 04-Mar-27 1.5 - 67,321,429 - - 67,321,429 67,321,429
Total 40,000,000 127,321,429 - - 167,321,429 167,321,429 -
Weighted average exercise price (cents) 2.94 1.87 - - 2.13 2.13 -
At the reporting date, the weighted average remaining contractual life of
options outstanding at year end was 1.33 years.
22 SHARE-BASED PAYMENT PLANS (continued)
Key valuation assumptions made at valuation date under the Black & Scholes
option pricing model are summarised below:
Tranche 1 2,000,000 5.0 01-Jul-22 31-Jul-25 3.08 100 3.13 1.40 2.7
Tranche 2 3,000,000 5.0 05-Sep-22 31-Jul-25 2.90 100 2.99 1.51 3.0
Tranche 3 17,000,000 2.5 08-Mar-23 09-Mar-26 3.01 100 3.48 0.73 1.4
Tranche 4 11,000,000 2.5 28-Oct-23 09-Mar-26 2.36 100 4.32 1.40 2.3
Tranche 5 5,000,000 2.5 29-Oct-23 09-Mar-26 2.36 100 4.32 1.29 2.3
Tranche 6 2,000,000 5.0 28-Apr-24 31-Jul-25 1.26 100 4.00 0.28 1.7
Tranche 7 35,000,000 2.5 30-Sep-24 09-Mar-26 1.44 100 3.50 0.38 1.3
Tranche 8 15,000,000 2.0 25-Nov-24 20-Dec-27 3.07 100 3.62 0.71 1.3
Tranche 9 10,000,000 2.0 10-Feb-25 20-Dec-27 2.86 100 3.91 0.348 0.8
Tranche 10 67,321,429 1.5 10-Feb-25 04-Mar-27 2.06 100 3.89 0.382 0.9
22 SHARE-BASED PAYMENT PLANS (continued)
Options (continued)
On 30 June 2024, a summary of the Group options issued and not exercised under
the share-based payment programme are as follows. Options are settled by the
physical delivery of shares:
20-Dec-21 20-Dec-21 20-Dec-23 15 2,000,000 - - (2,000,000) - -
01-Jul-22 01-Jul-22 31-Jul-25 5.0 2,000,000 - - - 2,000,000 2,000,000
05-Sep-22 05-Sep-22 31-Jul-25 5.0 3,000,000 - - - 3,000,000 3,000,000
08-Mar-23 08-Mar-23 09-Mar-26 2.5 17,000,000 - - - 17,000,000 17,000,000
28-Oct-23 28-Oct-23 09-Mar-26 2.5 - 11,000,000 - - 11,000,000 11,000,000
29-Oct-23 29-Oct-23 09-Mar-26 2.5 - 5,000,000 - - 5,000,000 5,000,000
28-Apr-24 28-Apr-24 31-Jul-25 5.0 - 2,000,000 - - 2,000,000 2,000,000
01-Jul-22 01-Jul-22 31-Jul-25 5.0 - 2,000,000 - - 2,000,000 2,000,000
Total 24,000,000 18,000,000 - (2,000,000) 40,000,000 40,000,000
Weighted average exercise price (cents) 4.06 2.78 - 15.0 2.94 2.94
At the exercise date, the weighted average remaining contractual life of
options outstanding at year end was 1.58 years.
23 FINANCIAL INSTRUMENTS
Accounting Policy
Recognition and derecognition
Financial assets and liabilities are recognised when the Group becomes a party
to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash
flows from the financial asset expire, or when the financial asset and
substantially all the risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged,
cancelled, or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing
component and are measured at the transaction price in accordance with AASB
15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For subsequent measurement, financial assets, other than those designated and
effective as hedging instruments, are classified into the following
categories:
· amortised cost
· fair value through profit or loss (FVTPL)
· equity instruments at fair value through other comprehensive income
(FVOCI)
· debt instruments at fair value through other comprehensive income
(FVOCI).
All income and expenses relating to financial assets that are recognised in
profit or loss are presented within finance costs, finance income or other
financial items, except for impairment of trade receivables which is presented
within other expenses.
The classification is determined by both:
· the entity's business model for managing the financial asset; and
· the contractual cash flow characteristics of the financial asset.
Subsequent remeasurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the
following conditions (and are not designated as FVTPL):
· they are held within a business model whose objective is to hold the
financial assets to collect its contractual cash flows
· the contractual terms of the financial assets give rise to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
23 FINANCIAL INSTRUMENTS (continued)
Accounting Policy (continued)
After initial recognition, these are measured at amortised costs using the
effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The
Group's cash and cash equivalents, trade and most other receivables fall into
this category of financial instruments as well as listed bonds that were
previously classified as held-to-maturity under AASB 139.
Impairment of financial assets
AASB 9's impairment requirements use more forward-looking information to
recognise expected credit losses - the 'expected credit loss (ECL) model'.
Instruments within the scope of the requirements included loans and other
debt-type financial assets measured at amortised cost and FVOCI, trade
receivables, contract assets recognised and measured under AASB 15 and loan
commitments that are not measured at fair value through profit or loss.
The Group considers a broad range of information when assessing credit risk
and measuring expected credit losses, including past events, current
conditions, reasonable and supportable forecasts that affect the expected
collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
· financial instruments that have not deteriorated significantly in
credit quality since initial recognition or that have low credit risk ('Level
1'); and
· financial instruments that have deteriorated significantly in credit
quality since initial recognition and whose credit risk is not low ('Level
2').
· 'Level 3' would cover financial assets that have objective evidence
of impairment at the reporting date.
'12-month expected credit losses' are recognised for the first category whilst
'lifetime expected credit losses' are recognised for the second category.
The Group does not have any material expected credit losses.
Measurement of the expected credit losses is determined by a
probability-weighted estimate of credit losses over the expected life of the
financial instrument.
The Group makes use of a simplified approach in accounting for trade and other
receivables and records the loss allowance as lifetime expected credit
losses. These are the expected shortfalls in contractual cash flows,
considering the potential for default at any point during the life of the
financial instrument. In calculating, the Group uses its historical
experience, external indicators, and forward-looking information to calculate
the expected credit losses using a provision matrix.
23 FINANCIAL INSTRUMENTS (continued)
Accounting Policy (continued)
Classification and measurement of financial liabilities
The Group's financial liabilities include borrowings, trade and other payables
and derivative financial instruments.
Financial liabilities are initially measured at fair value, and where
applicable, adjusted for transaction costs unless the Group designated a
financial liability at fair value through profit or loss.
Subsequently, financial liabilities are initially measured at amortised cost
using the effective interest method except for derivatives and financial
liabilities designation at FVTPL, which are carried subsequently at fair value
with gains or losses recognised in profit or loss.
All interest-related charges and, if applicable, changes in an instrument's
fair value that are reported in profit or loss are included within finance
costs or finance income.
Derivative financial instruments
Derivative financial instruments are accounted for at fair value through
profit and loss (FVTPL).
Capital risk management
The Group manages its capital to ensure that entities in the Group will be
able to continue as a going concern while maximising the return to
shareholders through the optimisation of the debt and equity balance.
The Group's overall strategy remains unchanged from 2024.
The capital structure of the Group consists of cash and cash equivalents,
borrowings, and equity attributable to equity holders of the parent,
comprising issued capital, reserves and retained earnings.
None of the Group's entities are subject to externally imposed capital
requirements.
Operating cash flows are used to maintain and expand operations, as well as to
make routine expenditures such as tax and general administrative outgoings.
Financial risk management objectives
The Group is exposed to market risk (including foreign currency exchange rate
risk and interest rate risk), credit risk and liquidity risk.
The Group's risk management policies are established to identify and analyse
the risks faced by the Group, to set appropriate risk limits and controls, and
to monitor risks and adherence to limits. Risk management policies and
systems are reviewed on a continuous basis to reflect changes in market
conditions and the Group's activities. The Group does not trade financial
instruments, including derivative financial instruments, for speculative
purposes.
23 FINANCIAL INSTRUMENTS (continued)
Market risk
The Group's activities expose it primarily to the financial risks of changes
in interest rates.
There has been no change to the Group's exposure to market risks or the manner
it manages and measures the risk from the previous period.
Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow
funds at both fixed and floating interest rates. The risk is managed by the
Group by maintaining an appropriate mix between fixed and floating rate
borrowings.
The Group's exposure to interest rate on financial assets and financial
liabilities are detailed in the liquidity risk management section of this
note.
Interest rate risk sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to
interest rates for non-derivative instruments at the balance date.
At balance date, if interest rates had been 100 points higher or lower and all
other variables were held constant, the Group's profit or loss would increase
/ (decrease) by $9,931.
The Group's sensitivity to interest rates has increased during the year mainly
due to the increase in cash held.
Credit risk management
Credit risk is the risk that a counterparty fails to discharge an obligation
to the Group. The Group is exposed to credit risk from financial assets
including cash and cash equivalents held at banks and trade and other
receivables.
The Group has adopted a policy of only dealing with creditworthy
counterparties.
The Group only transacts with entities that are rated the equivalent of
investment grade and above. This information is supplied by independent
rating agencies where available and, if not available, the Group uses publicly
available financial information and its own trading record to rate its
customers.
The Group's exposure and the credit ratings of its counterparties are
continuously monitored, and the aggregate value of transactions concluded is
spread amongst approved counterparties.
The Group does not have any significant credit risk exposure to any single
counterparty or any group of counterparties having similar characteristics.
The credit risk on liquid funds is limited because the counterparties are
banks or government agencies with high credit ratings assigned by
international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements,
represents the Group's maximum exposure to credit risk.
23 FINANCIAL INSTRUMENTS (continued)
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, who have built an appropriate liquidity risk management framework
for the management of the Group's short, medium, and long-term funding and
liquidity management requirements.
The Group manages liquidity risk by maintaining adequate banking and borrowing
facilities by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
Non-derivative financial liabilities
The following table details the Group's expected contractual maturities for
its non-derivative financial liabilities.
These have been drawn up based on undiscounted contractual maturities of the
financial liabilities based on the earliest date the Group can be required to
repay.
The table include both interest and principal cash flows.
30 June 2025
Trade and other payables n/a 691,943 520,492 - 1,212,435
Right-of-use lease liabilities 5.40 60,000 60,000 50,000 170,000
n/a 751,943 580,492 50,000 1,382,435
30 June 2024
Trade and other payables n/a 814,514 520,492 - 1,335,006
Right-of-use lease liabilities 47,792 - - 47,792
n/a 862,306 520,492 - 1,382,798
23 FINANCIAL INSTRUMENTS (continued)
Fair value measurement
Financial assets and financial liabilities measured at fair value in the
statement of financial position are grouped into three levels of a fair value
hierarchy.
The three levels are defined based on the observability of significant inputs
to the measurement, as follows:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities
· Level 2: inputs other than quoted prices included within
Level 1, that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
· Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
The carrying amounts of all financial assets and liabilities recognised in the
financial statements approximate their fair values other than those disclosed
below:
Listed shares (8,625,000 / 6,750,000) 1 448,500 1,080,800
Unlisted options (937,500, Black-Scholes valuation) 3 19,969 -
468,469 1,080,800
Not measured at fair value
The Group has various financial instruments which are not measured at fair
value on a recurring basis in the statement of financial position.
The Directors consider that the carrying amounts of current receivables,
current payables and current borrowings are a reasonable approximation to
their fair values.
The methods and valuation techniques used for the purposes of measuring fair
values are unchanged compared to the previous reporting period.
24 RELATED PARTIES
Accounting Policy
Key management personnel compensation
Directors' remuneration is expensed as the related service is provided. A
liability is recognised for the amount expected to be paid if the Group has a
present legal or constructive obligation to pay this amount because of past
service provided by the employee and the obligation can be estimated reliably.
(a) Key management personnel compensation
Key management personnel compensation comprises the following:
Short-term employee benefits 537,255 500,471
Post-employment benefits 20,125 6,238
Share-based payments - shares 25,000 -
Share-based payments - options 141,915 -
724,295 506,709
(b) Other key management personnel transactions
Several key management personnel, or their related parties, hold positions in
other companies that result in them having control or significant influence
over these companies.
A number of these companies transacted with the Group during the year. The
terms and conditions of these transactions were no more favourable than those
available, or which might reasonably be expected to be available, in similar
transactions to non-key management personnel related companies on an arm's
length basis.
Guy Robertson
Integrated CFO Solutions, a company for which Mr Robertson is a director,
received $60,000 (2024: $60,000) in repayment for commercial, arms-length
company secretarial services. The balance outstanding on 30 June 2025 was
$10,000 (2024: $5,000).
Bruce Garlick
Royal Corporate Services Pty Ltd, a company for which Mr Garlick is a
director, received $102,924 (2024: $nil) in repayment for commercial,
arms-length accounting services and office rent. The balance outstanding on
30 June 2025 was $25,144 (2024: $nil).
Royal Corporate Services Pty Ltd, a company for which Mr Garlick is a
director, purchased gold from the Company for total consideration of $6,705.
The sale was conducted at prevailing market prices and on an arm's length
basis. The balance outstanding on 30 June 2025 was $nil (2024: $nil).
25 AUDITOR'S REMUNERATION
HLB Mann Judd
Audit and other assurance services
Audit and review of financial reports 59,828 64,000
Taxation compliance services 7,000 10,000
Total Auditor's Remuneration 66,828 74,000
26 SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities, and
results of the following wholly owned subsidiary in accordance with the
accounting policy described in note 1.4:
Fox Radio Hill Pty Ltd Australia 100 100
KML No2 Pty Ltd Australia 100 100
Armada Mining Pty Ltd Australia 100 100
Artemis Management Services Pty Ltd Australia 100 100
Karratha Metals Pty Ltd Australia 100 100
Elysian Resources Pty Ltd Australia 100 100
Hard Rock Resources Pty Ltd Australia 100 100
Artemis Graphite Pty Ltd Australia 100 100
( )
Balances and transactions between the Company and its subsidiary, which is a
related party of the Company, have been eliminated on consolidation.
27 PARENT COMPANY DISCLOSURES
Accounting Policy
The accounting policies of the parent entity, which has been applied in
determining the financial information shown below, are the same as those
applied in the consolidated financial statements.
As at, and throughout the financial year ended 30 June 2025, the parent entity
of the Group was Artemis Resources Limited.
Result of the parent entity
Loss for the year (5,324,531) (6,459,561)
Total comprehensive loss for the year (5,324,531) (6,459,561)
Financial position of parent entity at year end
Current assets 1,764,251 1,812,367
Total assets 4,960,383 4,793,420
Current liabilities 1,349,721 1,336,704
Total liabilities 1,399,226 1,384,498
Total equity of the parent entity comprising of:
Share capital 125,661,826 120,237,759
Equity-settled benefits reserve 962,137 499,111
Accumulated losses (123,062,806) (117,327,948)
Total equity 3,561,157 3,408,922
The parent entity did not have any contingent liabilities or commitments as at
30 June 2025 (2024: nil).
28 CAPITAL AND OTHER COMMITMENTS
Exploration expenditure commitments
To maintain current rights of tenure to exploration tenements, the Group is
required to perform minimum exploration work to meet the requirements
specified by the State Government. These obligations are not provided for in
the financial statements and are payable as follows:
Mineral exploration
Less than one year 639,400 747,330
Between one year and five years 1,374,400 2,094,187
Greater than five years 99,100 287,177
( ) 2,112,900 3,128,694
29 CONTINGENT LIABILITIES AND ASSETS
As at 30 June 2025, the Group is not aware of any contingent liabilities or
contingent assets (2024: nil).
30 MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The Company announced and completed a capital raise of $4.925 million post
year end, issuing 1,231,249,999 shares at $0.004 each.
The Company appointed Mr Jozeph Patarica as a Non-executive Director on 17
September 2025.
No other matters or circumstances have arisen since the end of the financial
year that have significantly affected, or may significantly affect, the
operations of the Group, the results of these operations, or the state of
affairs of the Group in future financial years.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
As at 30 June 2025
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance
with s295(3A)(a) of the Corporations Act 2001 and includes the required
information for Artemis Resources Limited and the entities it controls in
accordance with AASB 10 Consolidated Financial Statements.
Tax Residency
S295(3A)(vi) of the Corporations Act 2001 defines tax residency as having the
meaning in the Income Tax Assessment Act 1997. The determination of tax
residency may involve judgement as there are different interpretations that
could be adopted, and which could give risk to different conclusions regarding
residency.
In determining tax residency, the Group has applied the following
interpretations:
Australian Tax Residency
Current legislation and judicial precedent have been applied, including having
regard to the Tax Commissioner's public guidance.
Foreign Tax Residency
Where appropriate, independent tax advisers have been engaged to assist in the
determination of tax residence to ensure applicable foreign tax legislation
has been complied with.
Parent Entity
Artemis Resources Limited Body Corporate Australia n/a Australian
Subsidiaries:
Fox Radio Hill Pty Limited Body Corporate Australia 100% Australian
Karratha Metals Limited Body Corporate Australia 100% Australian
KML No 2 Pty Limited Body Corporate Australia 100% Australian
Armada Mining Pty Limited Body Corporate Australia 100% Australian
Elysian Resources Pty Limited Body Corporate Australia 100% Australian
Hard Rock Resources Pty Limited Body Corporate Australia 100% Australian
Artemis Graphite Pty Ltd Body Corporate Australia 100% Australian
Artemis Management Services Pty Ltd Body Corporate Australia 100% Australian
Andover Lithium Pty Ltd Joint Venture Australia 50% Australian
At the end of the financial year, no entity within the consolidated entity was
a trustee of a trust within the consolidated entity, a partner in a
partnership within the consolidated entity, or a participant in a joint
venture within the consolidated entity.
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Artemis Resources Limited,
we state that:
In the directors' opinion:
1. The financial statements and notes comply with the Corporations Act
2001, the Accounting Standards, the Corporations Regulations 2001, and other
mandatory professional reporting requirements.
2. The attached financial statements and notes comply with
International Financial Reporting Standards as issued by the International
Accounting Standards Board as disclosed in note 1.2.
3. The financial statements and notes give a true and fair
view of the Group's financial position as of 30 June 2025 and of its
performance for the financial year ended on that date.
4. There are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and payable.
5. The Consolidated Entity Disclosure Statement on page 81 is
true and correct.
This declaration has been made after receiving the declarations required to be
made to the Directors in accordance with section 295A of the Corporations Act
2001 for the year ended 30 June 2025.
On behalf of the Board
Guy Robertson
Executive Chairman
26 September 2025
1 (#_ftnref1) Refer to Azure Minerals ASX Announcements dated 2 May 2024 and
7 August 2023
2 (#_ftnref2) Source of magnetic image: Geoscience Australia survey P1208
(Eucla Basin 1, 2009)
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