REG - Cobra Resources PLC - Final Results for the Year Ended 31 December 2024
30/04/2025 07:00
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RNS Number : 7203G Cobra Resources PLC 30 April 2025
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30 April 2025
Cobra Resources plc
("Cobra" or the "Company")
Final Results for the Year Ended 31 December 2024
Cobra (https://cobraplc.com/) (LSE: COBR)
(https://www.londonstockexchange.com/stock/COBR/cobra-resources-plc/company-page)
, the mineral exploration and development company advancing a potentially
world-class ionic Rare Earth Elements ("REEs") discovery at its Boland Project
("Boland") in South Australia, announces its final results for the year ended
31 December 2024.
Highlights
· At Boland, ionically bound REEs enriched in dysprosium and terbium
occur within permeable sands and are amenable to in situ recovery ("ISR"), a
low-cost, low impact mining process with high environmental stewardship
· Completed a sonic core drilling programme at Boland, with results
further demonstrating that the discovery could be a world-class source of
Magnet Rare Earth Oxides ("MREOs") and Heavy Rare Earth Oxides ("HREOs")
· Installed a five-hole screened wellfield to enable hydrological
studies and support future permitting for ISR pilot trials anticipated to
begin later this year
· Confirmed Boland scalable mineralisation potential through re-assay
results from historical drillholes defining 139km(2) of palaeochannel system
which supports regionally scalable, high-grade REE mineralisation
· Completed bench scale ISR test on Boland samples, with results
supporting bottom quartile recovery costs and demonstrating exceptional
permeability, a critical enabler of ISR and productivity
· Acquired the remaining 25% of the Wudinna Project from Andromeda
Metals, entitling the Company to 100% ownership, with Cobra continuing to
evaluate opportunities in light of the strong gold and uranium markets
· Obtained two new tenements (Smokey Bay and Pureba) covering over
1,000km(2) of the Narlaby Palaeochannel which are also considered highly
prospective for ionic REE mineralisation as well as roll-front uranium
mineralisation
· Demonstrated province-scale potential through re-analysis of
historical drillholes with REE mineralisation being defined within geological
units of the Yaninee Palaeochannel that are coeval with Boland mineralisation,
confirming the potential for multiple, province scale mineral systems
· Updated the REE strategy to include tests for extensions to
roll-front uranium mineralisation identified at the adjacent Yarranna Uranium
Project held by IsoEnergy which extends onto Cobra's Pureba tenement and
subsequently confirmed high-grade uranium mineralisation on Pureba
· Raised £2.3m aimed at advancing Boland towards commercialisation
Post Year End
· Successfully produced a potentially saleable Mixed Rare Earth
Carbonate ("MREC") at laboratory scale with industry stand-out grades from the
ISR study on permeable ore from Boland
· Completed Stage-1 of a fully funded, step-out aircore drilling
programme, further increasing the palaeochannel mineralisation continuity
demonstrated in the first batch of results announced in February 2025, and
leaving Cobra on track to define a significant REE Mineral Resource Estimate
("MRE") at Boland in 2025
· Commenced sonic drilling at Boland to inform the Company's funded and
ongoing resource-focused drilling programme
Greg Hancock, Chairman, commented:
"In the current geopolitical climate, a number of factors have the capacity to
drive significant changes in the rare earth market. Cobra is getting itself
ready to capitalise on the market turn with an operation that can produce in
the lowest cost quartile. With the metallurgy programme already providing
confidence in the cost and environmental profile of Boland via ISR, Cobra may
have one of the most desirable deposits outside of China.
Our focus has turned to defining a substantial resource of palaeochannel REEs,
with its highly attractive characteristics, before conducting an in-field ISR
study and commencing an economic analysis of the project. Our ultimate
opportunity is to be the Western world's first ISR rare earth mine that is
cost competitive with China, to be profitable even in current low pricing
environments where others aren't, and extremely profitable when mineral prices
strengthen."
Enquiries:
Cobra Resources plc via Vigo Consulting
Rupert Verco (Australia) +44 (0)20 7390 0234
Dan Maling (UK)
SI Capital Limited (Joint Broker) +44 (0)1483 413 500
Nick Emerson
Sam Lomanto
Global Investment Strategy (Joint Broker) +44 (0)20 7048 9437
James Sheehan james.sheehan@gisukltd.com
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0234
Ben Simons cobra@vigoconsulting.com
Kendall Hill
The person who arranged for the release of this announcement was Rupert Verco,
Managing Director of the Company.
About Cobra
In 2023, Cobra discovered a rare earth deposit with the potential to re-define
the cost of rare earth production. The highly scalable Boland ionic rare earth
discovery at Cobra's Wudinna Project in South Australia's Gawler Craton is
Australia's only rare earth project amenable for in situ recovery (ISR) mining
- a low cost, low disturbance method enabling bottom quartile recovery costs
without any need for excavation or ground disturbance. Cobra is focused on
de-risking the investment value of the discovery by proving ISR as the
preferred mining method and testing the scale of the mineralisation footprint
through drilling.
Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation,
including a 279,000 Oz gold JORC Mineral Resource Estimate, characterised by
low levels of over-burden, amenable to open pit mining.
Regional map showing Cobra's tenements in the heart of the Gawler Craton
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Chairman's Statement
Rare earth elements ("REEs") are not rare, but mineralogy that enables
profitable extraction is as rare as hens' teeth. As a result, only a handful
of rare earth mines are in operation outside of China. While most rare earth
explorers have focused on defining a resource before derisking the economics
of extraction, Cobra has strategically done the opposite. Cobra's innovative
approach to developing Boland, which we discovered in 2023, has been to focus
on technical and economic risk before defining scale. After all, what use is a
large REE resource if you can't demonstrate that you can produce it
profitably?
Fortunately for Cobra, the unique and highly scalable geology of our Boland
REE discovery enables the same cost benefits as the REE mines of Southern
China, without the environmental risk. This is because Boland, like the mines
of Southern China, is amenable to in situ recovery ("ISR"), the lowest capital
intensity form of mining. In 2024, Cobra's work programme was focused
extensively on confirming the metallurgical and ISR potential of Boland at
laboratory scale with exceptional results.
In the current turbulent precious metals and critical minerals markets, where
gold prices are at all-time highs but investment sentiment remains suppressed,
it is important for junior explorers to have upside exposure to a range of
commodities and the ability to advance the economic assessment of production
at an early stage. As such, Cobra provides shareholders with exposure to:
· A scalable and low-cost source of magnet and heavy REEs which are
critical to electrification and from which we plan to demonstrate value
through ISR
· The rising gold price as we evaluate commercial opportunities for
the Wudinna 279,000 Oz gold JORC Mineral Resource Estimate, characterised by
low levels of over-burden and amenable to open pit mining
· The strong uranium market, where our recently added land tenure
contains defined sandstone hosted uranium mineralisation
BOLAND PROJECT & ISR
Boland's unique permeable geology enables bottom quartile costs and
environmentally considerate extraction of critical minerals through the
low-impact, low-disturbance mining method, ISR. Against a backdrop of global
geopolitical instability, the need for security and diversity of supply is
paramount. As new project development is often hindered by suppressed pricing
and unpalatable project capital requirements, a new form of REE extraction is
required to overcome these challenges - and this is what Cobra is pioneering
at Boland.
Whilst many other ionic clay projects benefit from similar, cost-effective
metallurgy, their petrological and geological properties mean that to be mined
in a manner that mitigates environmental risk, they need to be conventionally
mined, with the binding clay ore needing to be separated and then dewatered
and remediated. Attempting to overcome these processes at scale has
historically been difficult, stalling the development of ionic clay projects
outside of Southern China.
Boland's unique palaeochannel geology and mineralogy are positioning the
project to overcome the cost challenges faced by those other rare earth
projects by utilising ISR, which has successfully been deployed at nearby
uranium mines in South Australia for a number of years. In doing so, Cobra
aims to deliver the Western world's first ISR rare earth mine that is cost
competitive with China.
At Boland, REE mineralisation is ionically bound to clays and organics in
palaeochannel sands within the Narlaby Palaeochannel. Mineralisation occurs
within a permeable sand within an aquifer that is saltier than sea water and
is confined by impermeable clays.
ISR is executed through engineered drillhole arrays that allow the injection
of mildly acidic ammonium sulphate lixiviants, using the confining nature of
the geology to direct and lower the acidity of the orebody. This low-cost
process enables mines to operate profitably at lower grades and lower rates of
recovery.
Once REEs are mobile in solution in groundwater, it is also possible, from an
engineering standpoint, to recover the solution to surface via extraction
drillholes, without any need for excavation or ground disturbance.
The capital costs of ISR mining are low as they involve no material movements
and do not require traditional infrastructure to process ore - i.e. metals
are recovered in solution.
Ionic mineralisation is highly desirable owing to its high weighting of
valuable Heavy Rare Earth Oxides ("HREOs") and the cost-effective method in
which REEs can be desorbed.
Ionic REE mineralisation in China is mined in an in-situ manner that relies on
gravity to permeate mineralisation. The style of ISR process is unconfined and
cannot be controlled, increasing the risk for environmental degradation. This
low-cost process has enabled China to dominate mine supply of HREOs, supplying
over 90% globally.
Confined aquifer ISR is successfully executed globally within the uranium
industry, accounting for more than 60% of the world's uranium production. This
style of ISR has temporary ground disturbance, and the ground waters are
regenerated over time.
Cobra is aiming to demonstrate the economic and environmental benefits of
recovering ionic HREOs through the more environmentally friendly aquifer
controlled ISR - a world first for rare earths.
OPERATIONAL REVIEW
Through the work programme delivered in 2024, and continuing in 2025, the
Company is defining a breakthrough approach to overcoming challenges
associated with clay hosted REE mining and processing.
Through ongoing testwork with ANSTO, the Company has shown that Boland
mineralisation can be mined via ISR at low operational costs to produce a
quality Mixed Rare Earth Carbonate ("MREC") through a simple, cost-efficient
flow sheet.
The Company's strategy has been driven by the principle that to define a rare
earth project of true value, the mineral occurrence requires advantageous
properties that:
· Can be mined at a low-cost
· Can be cost-effectively processed, where mineralogy and lithology
drive economic metallurgy
· Allow sustainable sourcing, through value-add or low impact
extraction
On this basis, Cobra's exploration strategy has been focused on:
1. Exploring for ionic, easily extractable rare earth mineralisation
2. Pursuing opportunities to advance exploration of other key minerals,
including gold and uranium, either concurrent with, or separate to,
REE-focused work
This exploration strategy is yielding exceptional results.
2024 REE Focused Outcomes
In 2023, Cobra made a regionally scalable ionic rare earth discovery, where
high grades of valuable Heavy Rare Earth Oxides ("HREOs") and Magnet Rare
Earth Oxides ("MREOs") occur concentrated in a permeable horizon confined by
impermeable clays. This unique geology is amenable to ISR.
During 2024, Cobra:
· Completed a sonic core drilling programme at Boland, with results
further demonstrating that the discovery could be a world-class source of
MREOs and HREOs and confirming:
o High grades - where length weighted intersections average 2,100 ppm Total
Rare Earth Oxides ("TREO") within Zone 3
o ISR mining potential - permeable mineralisation within a confined aquifer
enabling ISR
· Installed a five-hole screened wellfield to enable hydrological
studies and support future permitting for ISR pilot trials anticipated to
begin later this year
· Confirmed Boland scalable mineralisation potential through re-assay
results from historical drillholes defining 139km(2) of palaeochannel system
which supports regionally scalable, high-grade REE mineralisation
· Obtained two new tenements (Smokey Bay and Pureba) covering over
1,000km(2) of the Narlaby Palaeochannel which are also considered highly
prospective for ionic REE mineralisation as well as roll-front uranium
mineralisation (see Uranium Focused Outcomes below)
· Demonstrated province-scale potential through re-analysis of
historical drillholes with REE mineralisation being defined within geological
units of the Yaninee Palaeochannel that are coeval with Boland mineralisation,
confirming the potential for multiple, province scale mineral systems
· Updated REE strategy to include tests for extensions to roll-front
uranium mineralisation identified at the adjacent Yarranna Uranium Project
held by IsoEnergy which extends onto Cobra's Pureba tenement and subsequently
confirmed high-grade uranium mineralisation on Pureba
· Completed first bench scale ISR test on Boland samples:
o Achieved high recoveries from high-grade ore, including:
§ 56% TREO
§ 57% MREO
§ 50% HREO
o Strong recoveries achieved by lowering the sample pH from 7.1 to 3.0
o Low levels of impurities (deleterious elements) alongside low levels of
acid consumption were reported
o Advanced flowsheet development
· Reported further results from bench scale ISR testing that support
bottom quartile recovery costs
o High recoveries: exceptional recoveries of 68% MREOs and 62% HREOs
o Rapid recoveries: 22% MREOs and 31% HREOs recovered within 24 hours in
the second bench scale study with further recoveries expected over increased
timeframes
o High productivity: achieved by high mineralisation permeabilities,
reducing recovery timeframes and reducing wellfield configuration costs
o Low extraction costs: low acid consumption and low impurities supporting
a simple flowsheet, requiring low capital intensity
o Low-cost flowsheet tests completed: a precursor to producing a saleable
product - ambient temperature filtration and impurity removal steps completed
· Completed a second bench scale ISR test from a section of core from
Boland demonstrating exceptional permeability, a critical enabler of ISR and
productivity
Post Year-End REE Focused Outcomes
· Successfully produced a potentially saleable MREC at laboratory scale
from the ISR study on permeable ore from Boland
o Exceptionally high grade: 62.4% of the MREC product is comprised of TREOs,
one of the highest TREO grades produced from ionic REE projects globally
o Industry standout HREO quantity of 14.5% of MREC
o Low impurities: low elemental impurities of 3.13% with low levels of
uranium (34 ppm) and thorium (<10 ppm)
o High recoveries with optimisation upside: final ore to MREC recoveries of
59% MREOs and 55% HREOs, optimisation tests demonstrate considerable increases
to HREO recoveries further improving product value
· Completed Stage-1 of a fully funded, step-out aircore drilling
programme
o Further increased the palaeochannel mineralisation continuity demonstrated
in the first batch of results announced in February 2025
o Leaves Cobra on track to define a significant REE Mineral Resource
Estimate ("MRE") at Boland in 2025
Uranium Focused Outcomes
In 2024, Cobra announced that the Company's strategy to demonstrate the
scalability of Boland would also test for extensions to roll-front uranium
mineralisation identified at the adjacent Yarranna Uranium Project held by
IsoEnergy that extends onto the Company's Pureba tenement at the Western Eyre
Peninsula Project. Cobra is already advancing the ISR potential of REEs from
Boland and ISR is the established and dominant mining process for uranium.
The Smokey Bay and Pureba tenements cover over 1,000km(2) of the Narlaby
Palaeochannel where previous uranium focused drilling encountered playa clays
which are analogous to Boland mineralisation over extensive areas.
Re-assaying of 25 holes and 674 samples at the Yarranna Southeast prospect
validated historical reports of uranium mineralisation and enabled Cobra to
refine and interpret mineralised roll-fronts, defining priority drill targets
for high grade uranium mineralisation and ionic REEs.
Gold Focused Outcomes
Gold exploration was a core focus of Cobra's 2023 work programme, with the
Company increasing its gold Mineral Resource Estimate at the Wudinna Project
by 32% to 279,000 Oz. While there was no further gold exploration activity in
2024, with the Company focused on the Boland REE opportunity, with the gold
price reaching record highs, Cobra remains committed to capitalising on
opportunities to advance the Wudinna gold assets towards development as it
continues the planned growth of the Boland REE project.
100% Wudinna Project Acquisition
(Refer to update for further detail)
In April 2024, Cobra acquired the remaining 25% of the Wudinna Project from
Andromeda Metals, entitling the Company to 100% ownership. Finalising 100%
project acquisition enhances optionality, with Cobra continuing to evaluate
opportunities in light of the strong gold and uranium markets.
CORPORATE DEVELOPMENTS
· Raised a total of £2.3m through two placings aimed at advancing
Boland towards commercialisation, with the proceeds allocated to:
o Resource definition: both aircore and sonic core drilling to support a
maiden palaeochannel REE Mineral Resource Estimate in 2025
o Regional exploration: aircore drilling aimed at testing priority
palaeochannel targets prospective for ionic rare earth mineralisation
o Scaled ISR testing: increase the scale of ISR bench scale tests at
optimised conditions to produce a sufficient quantity of mixed rare earth
carbonate for off take testing
o In field permeability testing: Aimed at emulating the ISR process to
replicate permeability rates achieved at bench scale
o Scoping study: the exploration executed through the above work plans will
support a scoping study aimed at defining the economics of the low-cost ISR
mining operation
· A prospectus was published in January 2024 for the issue of the
Consideration Shares to Andromeda Metals for the remaining 25% of Wudinna and
to raise a further £220,000 through the issue of 22,000,000 shares
· Appointed Non-Executive Director David Clarke in an executive role
as Director, Business Development and Asset Marketing to help advance the
commercialisation pathway of Boland
CONCLUSION
In the current geopolitical climate, a number of factors have the capacity to
drive significant changes in the rare earth market. Cobra is getting itself
ready to capitalise on the market turn with an operation that can produce in
the lowest cost quartile. With the metallurgy programme already providing
confidence in the cost and environmental profile of Boland via ISR, Cobra may
have one of the most desirable deposits outside of China.
I would like to put on record my thanks to my fellow directors for their
contribution throughout the year, as well as Exploration Manager, Robert
Blythman, for his hard work and commitment to delivering Cobra's work
programme at Boland. In addition, I would like to extend my thanks to our
valued stakeholders, contractors and service providers for their continued
support.
Our focus has turned to defining a substantial resource of palaeochannel REEs,
with its highly attractive characteristics, before conducting an in-field ISR
study and commencing economic analysis of the project. Our ultimate
opportunity is to be the Western world's first ISR rare earth mine to be
profitable even in current low pricing environments where others aren't, and
extremely profitable when mineral prices strengthen.
Greg Hancock
Non-Executive Chairman
29 April 2025
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Notes 31 December 31 December
2024 2023
£ £
Other Income 2 91,267 -
Other Expenses 2 (565,298) (885,029)
Operating loss (474,031) (885,029)
Finance income and costs 3 7,169 (21,773)
(466,862) (906,802)
Change in estimate of contingent consideration 14 43,527 (14,311)
Loss before tax (423,336) (921,113)
Taxation 6 - -
Loss for the year attributable to equity holders (423,336) (921,113)
Earnings per Ordinary share
Basic and diluted loss per share attributable to owners of the Parent Company 7 (£0.0006) (£0.0018)
All operations are considered to be continuing.
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
31 December 31 December
2024 2023
£ £
Loss for the year (423,336) (921,113)
Other Comprehensive income
Items that may subsequently be reclassified to profit or loss:
- Exchange differences on translation of foreign operations (305,161) (132,058)
Total comprehensive loss attributable to equity holders of the Parent Company (728,497) (1,053,171)
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2024
Notes
2024 2023
£ £
Non-current assets
Intangible Fixed Assets 9 4,318,175 3,258,753
Property, plant and equipment 10 4,526 1,649
Other non-current assets 11 35,088 31,036
Total non-current assets 4,357,789 3,291,438
Current assets
Trade and other receivables 11 144,746 36,248
Cash and cash equivalents 12 795,708 638,475
Total current assets 940,454 674,723
Current liabilities
Trade and other payables 13 171,101 198,687
Contingent consideration 14 119,698 163,225
Total current liabilities 290,799 361,912
Net assets 5,007,444 3,604,249
Capital and reserves
Share capital 15 7,988,713 5,923,794
Share premium account 2,821,139 2,785,366
Share based payment reserve 52,472 21,476
Retained losses (5,692,629) (5,269,293)
Foreign currency reserve (162,251) 142,906
Total equity 5,007,444 3,604,249
The accompanying notes are an integral part of these financial
statements.
These financial statements were approved and authorised for issue by the Board
of Directors on 29 April 2025.
Signed on behalf of the Board of Directors
Greg Hancock, Non-Executive Chairman, Company No. 11170056
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2024
Notes
2024 2023
£ £
Non-current assets
Investment in subsidiary 8 562,260 432,260
Property, plant and equipment 10 1,428 1,428
Intangible Fixed Assets 9 - -
Total non-current assets 563,688 433,688
Current assets
Trade and other receivables 11 5,019,440 3,841,258
Cash and cash equivalents 12 690,633 313,071
Total current assets 5,710,073 4,154,329
Current liabilities
Trade and other payables 13 67,168 166,739
Contingent consideration 14 119,698 163,225
Total current liabilities 186,866 329,964
Net assets 6,086,895 4,258,053
Capital and reserves
Share capital 15 7,988,713 5,923,794
Share premium account 2,821,139 2,785,366
Share based payment reserve 52,472 21,476
Retained losses (4,775,430) (4,472,583)
Equity shareholders' funds 6,086,895 4,258,053
The Company has taken advantage of the exemption allowed under section 408 of
the Companies Act 2006 and has not included its own income statement and
statement of comprehensive income in these financial statements. The Parent
Company's loss for the period amounted to £302,847 (2023: £588,276 loss).
The accompanying notes are an integral part of these financial statements.
These financial statements were approved and authorised for issue by the Board
of Directors on 29 April 2025.
Signed on behalf of the Board of Directors
Greg Hancock, Non-Executive Chairman, Company No. 11170056
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital Share premium Share based payment reserve Retained losses Foreign currency reserve Total
£ £ £ £ £ £
Asat 1 January 2023 5,152,494 2,794,649 (16,908) (4,348,182) 274,964 3,857,017
- - - (921,113) (921,113)
Loss for the year
Translation differences - - - - (132,058) (132,058)
Total Comprehensive loss for the year - - - (921,113) (132,058) (1,053,171)
Shares issued 771,300 - - - - 771,300
Share issue cost - (6,900) - - - (6,900)
Warrants issued - (2,383) 2,383 - - -
Share options charge - - 36,000 - - 36,000
Total transactions with owners 771,300 (9,283) 38,383 -
800,400
At 31 December 2023 5,923,794 2,785,366 21,476 (5,269,293) 142,906 3,604,249
Loss for the year - - - (423,336) (423,336)
Translation differences - - - (305,161) (305,161)
Total Comprehensive loss for the year - - - (423,336) (305,161) (728,497)
Shares issued 2,064,919 108,468 - - 2,173,386
Share issue cost - (72,695) - - (72,695)
Share options charge - - 30,997 - 30,997
Total transactions with owners 2,064,919 35,773 30,997 - 2,131,689
At 31 December 2024 7,988,713 2,821,139 52,472 (5,692,629) (162,251) 5,007,444
The following describes the nature and purpose of each reserve within equity:
Share capital:
Nominal value of shares issued
Share premium:
Amount
subscribed for share capital in excess of nominal value, less share issue
costs
Share based payment reserve: Cumulative fair value of warrants
and options granted
Retained losses:
Cumulative
net gains and losses, recognised in the statement of comprehensive income
Foreign currency reserve: Gains/losses arising on
translation of foreign controlled entities into pounds sterling.
The accompanying notes are an integral part of these financial statements.
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share Share Share based Retained Total
capital premium payment losses
reserve
£ £ £ £ £
At 1 January 2023 5,152,494 2,794,649 (16,908) (3,884,307) 4,045,928
Loss for the year - - - (588,276) (588,276)
Total Comprehensive loss for the year - - - (588,276) (588,276)
Shares issued 771,300 - - - 771,300
Share issue costs - (6,900) - - (6,900)
Warrants issued - (2,383) 2,384 - -
Share option charge - - 36,000 - 36,000
Total transactions with owners 771,300 (9,283) 38,383 - 800,400
At 31 December 2023 5,923,794 2,785,366 21,476 (4,472,583) 4,258,053
Loss for the year - - - (302,847) (302,847)
Total Comprehensive loss for the year - - - (302,847) (302,847)
Shares issued 2,064,919 108,468 - - 2,173,386
Share issue costs - (72,695) - - (72,695)
Share option charge - - 30,997 - 30,997
Total transactions with owners 2,064,919 35,773 30,997 - 2,131,689
At 31 December 2024 7,988,713 2,821,139 52,472 (4,775,430) 6,086,895
The following describes the nature and purpose of each reserve within equity:
Share capital: Nominal value of shares issued
Share premium: Amount subscribed for share capital in excess of nominal value, less share
issue costs
Share based payment reserve: Cumulative fair value of warrants and options granted
Retained losses: Cumulative net gains and losses, recognised in the statement of comprehensive
income
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Notes 31 December 31 December
2024 2023
£ £
Cash flows from operating activities
Loss before tax (423,336) (921,113)
Share-based payments 30,997 36,000
Consulting fees settled in shares 11,700 -
Foreign exchange (997) (23,104)
Interest income 3 (7,611) (5,708)
Other Income (61,423) -
Fair value (gain)/loss on contingent consideration 14 (43,527) 14,311
(Increase) in trade and other receivables 11 (108,498) (13,850)
(Increase)/decrease in other non-current assets 11 (4,052) 31,036
(Increase) / decrease in trade and other payables 13 (27,583) 131,678
Net cash used in operating activities (634,330) (736,439)
Cash flows from investing activities
Payments for exploration and evaluation activities 9 (767,063) (640,414)
Payments for property, plant and equipment 10 (2,875) (222)
Interest received 3 7,611 5,708
Net cash used in investing activities (762,327) (634,928)
Cash flows from financing activities
Proceeds from the issue of shares 15 1,626,586 744,000
Payment of share issuance costs (72,695) (6,900)
Net cash generated from financing activities 1,553,891 737,100
Net increase/(decrease) in cash and cash equivalents 157,234 (634,267)
Cash and cash equivalents at beginning of year 638,475 1,272,742
Cash and cash equivalents at end of year 12 795,708 638,475
During the year the group acquired the remaining 25% of the Wudinna Project
through issuing a further 52,010,000 shares at 1p each to Peninsula Resources
Pty Ltd, and additional £25,000 in fees owing to suppliers were settled via
the issue of 2,500,000 Ordinary shares at 1p each.
The accompanying notes are an integral part of these financial statements.
PARENT COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Notes 31 December 31 December
2024 2023
£ £
Cash flows from operating activities
Loss before tax (302,847) (588,276)
Share based payments 30,977 36,000
Consulting fees settled in shares 11,700 -
Fair value (gain)/loss on contingent consideration 14 (43,527) 14,311
VAT reclaimable from prior period (61,423) -
Increase in trade and other receivables 11 (596,661) (1,143,601)
(Decrease) / increase in trade and other payables 13 (99,568) 167,854
Net cash used in operating activities (1,061,329) (1,499,401)
Cash flows from investing activities
Loan to Subsidiary 11 (115,000) -
Net cash used in investing activities (115,000) -
Cash flows from financing activities
Nett proceeds from the issue of shares 1,626,586 744,000
Payment of share issue costs (72,695) (6,900)
Net cash generated from financing activities 1,553,891 737,100
Net increase/(decrease) in cash and cash equivalents 377,562 (762,301)
Cash and cash equivalents at beginning of year 313,071 1,075,372
Cash and cash equivalents at end of year 12 690,633 313,071
Major non-cash transactions
During the year the group acquired the remaining 25% of the Wudinna Project
through issuing a further 52,010,000 shares at 1p each to Peninsula Resources
Pty Ltd, and additional £25,000 in fees owing to suppliers were settled via
the issue of 2,500,000 Ordinary shares at 1p each.
The accompanying notes are an integral part of these financial statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
General information
The Company is a public company limited by shares which is incorporated in
England. The registered office of the Company is 9(th) Floor, 107 Cheapside,
London, EC2V 6DN, United Kingdom. The registered number of the Company is
11170056.
The principal activity of the Group is to objective is to explore, develop and
mine precious and base metal projects.
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these
Financial Statements are set out below ('Accounting Policies' or 'Policies').
These Policies have been consistently applied to all the periods presented,
unless otherwise stated.
Accounting policies
Basis of preparation of Financial Statements
These financial statements have been prepared in accordance with UK-adopted
international accounting standards and with the requirements of the Companies
Act 2006. The Group and Company Financial Statements have also been prepared
under the historical cost convention, except as modified for assets and
liabilities recognised at fair value on an asset acquisition.
The Financial Statements are presented in pounds sterling, which is the
functional currency of the Parent Company. The functional currency of Lady
Alice Mines Pty Ltd is Australian Dollars.
The preparation of the Financial Statements in conformity with IFRS requires
the use of certain critical accounting estimates. It also requires the Board
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 1.
Changes in accounting policies
i) New and amended standards adopted by the Group and
Company
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the period
ended 31 December 2024 but did not result in any material changes to the
financial statements of the Group or Company.
Of the other IFRS and IFRIC amendments, none are expected to have a material
effect on the future Group or Company Financial Statements.
ii) New standards, amendments and interpretations that
are not yet effective and have not been early adopted are as follows:
Standard Impact on initial application Effective date
IAS 21 (Amendments) The Effects of Changes in Foreign 1 January 2025
Exchange Rate: Lack of Exchangeability
IFRS S1 General Requirements for Disclosure of 1 January 2024*
Sustainability-related Financial Information
IFRS S2 Climate-related Disclosures 1 January 2024*
IFRS 7 & 9 (Amendments) IFRS 9 Financial Instruments and IFRS 7 1 January 2026*
Financial Instruments: Disclosures: Classification and
Measurement of Financial Instruments
IFRS 18
Presentation and Disclosure in Financial Statements 1 January 2027*
Annual Improvements to IFRS standards - Volume 11 1 January 2026
N/A
None are expected to have a material effect on the Group or Company Financial
Statements.
*not yet endorsed in the UK
Going concern
The Financial Statements have been prepared on a going concern basis. In
assessing whether the going concern assumption is appropriate, the Directors
have taken into account all relevant available information about the current
and future position of the Group and Company, including the current level of
resources and the required level of spending on exploration and evaluation
activities. As part of their assessment, the Directors have also taken into
account the ability to raise additional funding whilst maintaining sufficient
cash resources to meet all commitments. The Board regularly reviews market
conditions, the Group's cash balance in alignment with the Company's forward
commitments and shall where deemed necessary revise expenditure commitments,
defer director payments and terminate short term contracts as a means of cash
preservation. Post-period end, the Company raised a further £765,000 post the
approval and issue of tranche 2 shares via the March 2025 EGM as announced on
the 26(th) November 2024.
The Group meets its working capital requirements from its cash and cash
equivalents. The Company is pre-revenue, and to date the Company has raised
finance for its activities through the issue of equity and debt.
The Group has £795,708 of cash and cash equivalents at 31 December 2024.
The Group's and Company's ability to meet operational objectives and general
overheads is reliant on raising further capital in the near future.
The Directors are confident that further funds can be raised and it is
appropriate to prepare the financial statements on a going concern basis,
however there can be no certainty that any fundraise will complete. These
conditions indicate existence of a material uncertainty related to events or
conditions that may cast significant doubt about the Group's and Company's
ability to continue as a going concern, and, therefore, that it may be unable
to realise its assets and discharge its liabilities in the normal course of
business. These financial statements do not include the adjustments that
would be required if the Group and Company could not continue as a going
concern.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Parent Company and companies controlled by the Parent Company, the
Subsidiary Companies, drawn up to 31 December each year.
Control is recognised where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain benefits from its
activities, and is exposed to, or has rights to, variable returns from its
involvement in the subsidiary. The results of subsidiaries acquired or
disposed of during the year are included in the consolidated income statement
from the effective date of acquisition or up to the effective date of
disposal, where appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the Group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
The Group applies the acquisition method of accounting to account for business
combinations. The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the liabilities
incurred to the former owners of the acquiree and the equity interests issued
by the Group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values
at the acquisition date.
Acquisition-related costs are expensed as incurred unless they result from the
issuance of shares, in which case they are offset against the premium on those
shares within equity.
Any contingent consideration to be transferred by the Group is recognised at
fair value at the acquisition date. Subsequent changes to the fair value of
the contingent consideration that is deemed to be an asset or liability is
recognised either in profit or loss or as a change to other comprehensive
income. Contingent consideration that is classified as equity is not
re-measured, and its subsequent settlement is accounted for within equity.
Investments in subsidiaries are accounted for at cost less impairment.
Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of
Directors that makes strategic decisions.
The Group's operations are located Australia with the head office located in
the United Kingdom. The main tangible assets of the Group, cash and cash
equivalents, are held in the United Kingdom and Australia. The Board ensures
that adequate amounts are transferred internally to allow all companies to
carry out their operational on a timely basis.
The Directors are of the opinion that the Group is engaged in a single
segment of business being the exploration of gold in Australia. The Group
currently has two geographical reportable segments - United Kingdom and
Australia.
Foreign currencies
For the purposes of the consolidated financial statements, the results and
financial position of each Group entity are expressed in pounds sterling,
which is the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions
in currencies other than the entity's functional currency (foreign currencies)
are recorded at the rates of exchange prevailing at the dates of the
transactions. At each reporting date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the reporting date.
Exchange differences arising are included in the profit or loss for the
period.
For the purposes of preparing consolidated financial statements, the assets
and liabilities of the Group's foreign operations are translated at exchange
rates prevailing on the reporting date. Income and expense items are
translated at the average exchange rates for the period. Gains and losses from
exchange differences so arising are shown through the Consolidated Statement
of Changes in Equity.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and any accumulated impairment losses. Depreciation is provided on all
property, plant and equipment to write off the cost less estimated residual
value of each asset over its expected useful economic life on a straight-line
basis at the following annual rates: Office Equipment: 33.33% per annum
The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period. An asset's carrying amount
is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount. Gains and losses on
disposal are determined by comparing the proceeds with the carrying amount and
are recognised within 'Other (losses)/gains' in the Statement of Comprehensive
Income.
Impairment of tangible fixed assets
A review for indicators of impairment is carried out at each reporting date,
with the recoverable amount being estimated where such indicators exist. Where
the carrying value exceeds the recoverable amount, the asset is impaired
accordingly. Prior impairments are also reviewed for possible reversal at each
reporting date.
For the purposes of impairment testing, when it is not possible to estimate
the recoverable amount of an individual asset, an estimate is made of the
recoverable amount of the cash-generating unit to which the asset belongs. The
cash-generating unit is the smallest identifiable group of assets that
includes the asset and generates cash inflows that largely independent of the
cash inflows from other assets or groups of assets.
Exploration and evaluation assets
Exploration and evaluation assets, held as intangible fixed assets on the
statement of financial position comprises all costs which are directly
attributable to the exploration of a project area. The Group recognises
expenditure as exploration and evaluation assets when it determines that those
assets will be successful in finding specific mineral resources. Expenditure
capitalised as exploration and evaluation assets relates to the acquisition of
rights to explore, topographical, geological, geochemical and geophysical
studies, exploratory drilling, trenching, sampling and activities to evaluate
the technical feasibility and commercial viability of extracting a mineral
resource. Capitalisation of pre-production expenditure ceases when the mining
property is capable of commercial production.
Exploration and evaluation assets recorded at fair-value on acquisition
Exploration assets which are acquired are recognised at fair value. When an
acquisition of an entity whose only significant assets are its exploration
asset and/or rights to explore, the Directors consider that the fair value of
the exploration assets is equal to the consideration. Any excess of the
consideration over the capitalised exploration asset is attributed to the fair
value of the exploration asset.
Impairment of intangible assets
Intangible assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment, or more frequently if
events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss
is recognised in profit or loss for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets
(cash-generating units). Early stage exploration projects are assessed for
impairment using the methods specified in IFRS 6.
Financial Assets
Loans and Receivables
(a) Classified as receivables are non-derivative financial assets with fixed
or determinable payments that are not quoted in an instrument level.
The Group's and Company's business model for managing financial assets refers
to how it manages its financial assets in order to generate cash flows. The
business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in
four categories:
• financial assets at amortised cost (debt instruments);
• financial assets at fair value through OCI with recycling of
cumulative gains and losses through profit or loss (debt instruments);
• financial assets designated at fair value through OCI with no
recycling of cumulative gains and losses upon derecognition through profit or
loss (equity instruments); and
• financial assets at fair value through profit or loss.
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group and Company. The Group and
Company measure financial assets at amortised cost if both of the following
conditions are met:
• the financial asset is held within a business model with the
objective to hold financial assets in order to collect contractual cash flows;
and
• the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the
effective interest rate ("EIR") method and are subject to impairment. Interest
received is recognised as part of finance income in the statement of profit or
loss and other comprehensive income. Gains and losses are recognised in profit
or loss when the asset is derecognised, modified or impaired. The Group's and
Company's financial assets at amortised cost include trade and other
receivables (not subject to provisional pricing) and cash and cash
equivalents.
Derecognition
A financial asset is primarily derecognised when:
• the rights to receive cash flows from the asset have expired; or
• the Group and Company have transferred their rights to receive
cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a
'pass-through' arrangement; and either (a) the Group and Company have
transferred substantially all the risks and rewards of the asset, or (b) the
Group and Company have neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
The Group and Company recognise an allowance for expected credit losses
("ECLs") for all debt instruments not held at fair value through profit or
loss. ECLs are based on the difference between the contractual cash flows due
in accordance with the contract and all the cash flows that the Group and
Company expect to receive, discounted at an approximation of the original EIR.
The expected cash flows will include cash flows from the sale of collateral
held or other credit enhancements that are integral to the contractual terms.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
Subsequent measurement
After initial recognition, trade and other payables are subsequently measured
at amortised cost using the EIR method. Gains and losses are recognised in the
statement of profit or loss and other comprehensive income when the
liabilities are derecognised, as well as through the EIR amortisation process.
Financial liabilities at fair value through profit or loss include contingent
liability. Gains or losses are recognised in the consolidated income
statement.
Derecognition
A financial liability is derecognised when the associated obligation is
discharged or cancelled or expires.
Cash and cash equivalents
The Company considers any cash on short-term deposits and other short-term
investments to be cash and cash equivalents.
Share capital
The Company's Ordinary shares of nominal value £0.01 each ("Ordinary Shares")
are recorded at such nominal value and proceeds received in excess of the
nominal value of Ordinary Shares issued, if any, are accounted for as share
premium. Both share capital and share premium are classified as equity. Costs
incurred directly to the issue of Ordinary Shares are accounted for as a
deduction from share premium, otherwise they are charged to the income
statement.
Current and deferred income tax
Tax represents income tax and deferred tax. Income tax is based on profit or
loss for the year. Taxable profit or loss differs from the loss for the year
as reported in the Consolidated Statement of Comprehensive Income because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items of income or expense that are never
taxable or deductible. The liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the Statement of
Financial Position date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the Historical
Financial Information and the corresponding tax bases used in the computation
of taxable profit, and is accounted for using the liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised.
Deferred tax assets and liabilities are offset where there is a legally
enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation
authority and the intention is to settle current tax assets and liabilities on
a net basis.
Share based payments
The fair value of services received in exchange for the grant of share
warrants and options is recognised as an expense in share premium or profit or
loss, in accordance with the nature of the service provided. A corresponding
increase is recognised in equity.
The total expense to be apportioned over the vesting period of the benefit is
determined by reference to the fair value (excluding the effect of non
market-based vesting conditions) at the date of grant. Fair value is measured
by the use of the Black-Scholes model. The expected life used in the model has
been adjusted, based on management's best estimate, for the effects of the
non- transferability, exercise restrictions and behavioural considerations. A
cancellation of a share award by the Group is treated consistently, resulting
in an acceleration of the remaining charge within the consolidated income
statement in the year of cancellation.
Judgements and key sources of estimation uncertainty
The preparation of the Financial Statements in conformity with IFRS requires
the directors to make judgements, estimates and assumptions that affect the
amounts reported. These estimates and judgements are continually reviewed and
are based on experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
Recoverability of exploration and evaluation assets
Exploration and evaluation costs have a carrying value at 31 December 2024 of
£4,259,271 (2023: £3,258,753). Such assets have an indefinite useful life as
the Group has a right to renew exploration licences and the asset is only
amortised once extraction of the resource commences. Management tests for
impairment annually whether exploration projects have future economic value in
accordance with the accounting policy stated in Note 2. Each exploration
project is subject to an annual review to determine if the exploration results
during the period warrant further exploration expenditure and have the
potential to result in an economic discovery. This review takes into
consideration long term prices, anticipated resource volumes and supply and
demand outlook. In the event that a project does not represent an economic
exploration target and results indicate there is no additional upside, a
decision will be made to discontinue exploration; an impairment charge will
then be recognised in the statement of comprehensive income.
In April 2024, Cobra acquired the remaining 25% of the Wudinna Project from
Andromeda Metals, entitling the Company to 100% ownership. The carrying value
of the remaining 25% was acquired issuing a further 52,010,000 shares at 1p
each to Peninsula Resources Pty Ltd. The Company recorded the carrying amount
at cost.
As a result of the exploration results received to date, budget for further
exploration works and licences being in good standing, Management do not
consider that the exploration and evaluation assets are impaired as at 31
December 2024 and 2023.
Recoverability of VAT
As a result of structural changes, the Company became registered for VAT as of
12(th) December 2024 with an effective registration date backdated to 1(st)
of January 2023. The accounts are presented with an estimated recoverable
amount of historic and current VAT. The final amounts to be recovered are
subject to HMRC review. The estimated VAT recoverable have been made using
historic records and cross checking VAT regististrations and validity. The
recording of the estimated VAT receivable has been recorded in the current
year trade & receivables and details in note 2 other income £61,422.
Share-based payments valuations
Accounting estimates and assumptions are made concerning the future and, by
their nature, may not accurately reflect the related actual outcome. Share
options and warrants are measured at fair value at the date of grant. The fair
value is calculated using the Black Scholes method for both options and
warrants as the management views the Black Scholes method as providing the
most reliable measure of valuation.
Contingent Consideration
Contingent consideration, resulting from business combinations, is valued at
fair value at the acquisition date as part of the business combination. The
determination of fair value is based on key assumptions involving estimation
of the probability of meeting each performance target and the timing thereof
which are judgement based decisions made by Management. As part of the
acquisition of Lady Alice Mines Pty Ltd, contingent consideration with an
estimated fair value of £296,536 was recognised at the acquisition date. See
note 18 for further details. The Group is required to remeasure the contingent
liability at fair value at each reporting date with changes in fair value
recognised through profit or loss in accordance with IFRS 9. Therefore, as at
31 December 2024, the contingent consideration reflects an estimated fair
value of £119,698.
Recoverable value of investment in subsidiary and intercompany debtors
As at 31 December 2024, the Company recognised an investment in subsidiary of
£562,260 (2023: £432,260), and loans to the subsidiary of £4,730,004 (2023
£3,810,385 ). The carrying value of the investment is assessed for
indications of impairment, as set out in IAS 36 on an annual basis. Where
indications of impairment are present, the recoverable value is required to be
estimated.
The main consideration for Management when considering recoverability is the
probability of realising value from the exploration intangible assets owned by
the subsidiary which will generate future cashflow to enable both repayment of
the loans and realisation of value of investment.
As a result of the exploration results received to date, budget for further
exploration works in 2024 and licences being in good standing, Management do
not consider that the investment in subsidiary, or loans to subsidiary are
impaired as at 31 December 2024 and 2023.
These estimates and assumptions are subject to risk and uncertainty and
therefore a possibility that changes in circumstances will impact the
assessment of impairment indicators.
2.INCOME & EXPENSES BY NATURE
31 December 31 December
2024 2023
£ £
VAT receivable 61,422 -
Option fee received 29,845 -
Other Income 91,267 -
113,489 163,312
Administrative expense
Corporate expense and Finance 258,837 451,420
Professional fees - -
Wages & Salaries expense 192,972 270,297
Total Expenses 565,298 885,029
Auditor's remuneration
31 December 31 December
2024 2023
£ £
Fees payable to the Group's auditor for the audit of the Group's annual 37,500 30,000
accounts
37,500 30,000
3. FINANCE COSTS
31 December 31 December
2024 2023
£ £
Interest income 7,611 5,708
Finance costs (442) (27,481)
Net finance costs 7,169 (21,773)
4. SEGMENT INFORMATION
The Group's prime business segment is mineral exploration.
The Group operates within two geographical segments, the United Kingdom and
Australia. The UK sector consists of the parent company which provides
administrative and management services to the subsidiary undertaking based in
Australia.
The following tables present expenditure and certain asset information
regarding the Group's geographical segments for the years ended 31 December
2024 and 2023:
Operational Results 31 December 31 December
2024 2023
£ £
Revenue - -
Loss after taxation
- United Kingdom (302,847) (588,276)
- Australia (120,489) (332,837)
Total (423,336) (921,113)
2024 Australia United Kingdom Total
£ £ £
Non-current assets 4,042,087 315,702 4,357,789
Current assets 1,739 938,715 940,454
Total liabilities (103,932) (186,867) (290,799)
2023 Australia United Kingdom Total
£ £ £
Non-current assets 2,857,751 433,687 3,291,438
Current assets 248,808 425,913 674,723
Total liabilities (31,948) (329,964) (361,912)
5. DIRECTORS' EMOLUMENTS
There were no employees during the period apart from the directors, who are
the key management personnel. No directors had benefits accruing under money
purchase pension schemes.
Year ended 31 December 2024 Salaries Fees Other Share Based payment charge Total
£ £ £ £ £
G Hancock - 33,650 - 8,143 41,793
R Verco 148,675 - - 6,000 154,675
D Maling - 24,000 - 8,714 32,714
D Clarke - 50,000 - 8,143 58,143
148,675 107,650 - 31,000 287,325
· During the year £33,650 (2023: £31,166) was paid to Hancock Corporate
Investments Pty Ltd, a company in which Greg Hancock is a Director, in respect
of Directors fees and consultancy services.
· During the year £24,000 (2023: £24,000) was paid to Dan Maling, in
respect of Directors fees.
· During the year £50,000 (2023: £24,000) was paid to The Springton
Trust & Queens Road Mines, in which David Clarke is a Trustee, in respect
of Directors fees and consultancy services.
Rupert Verco was the highest paid Director for the year who received
remuneration of £148,675.
Year ended 31 December 2023 Salaries Fees Other Share Based payment charge Total
£ £ £ £ £
G Hancock - 31,166 - 8,143 39,309
R Verco 138,934 - - 11,000 149,934
D Maling - 24,000 19,000 8,714 51,714
D Clarke - 24,000 - 8,143 32,143
138,934 79,166 19,000 36,000 273,100
· During the year £31,166 (2022: 36,361) was paid to Hancock Corporate
Investments Pty Ltd, a company in which Greg Hancock is a Director, in respect
of Directors fees and consultancy services.
· During the year £24,000 (2022: £24,000) was paid to Dan Maling, in
respect of Directors fees.
· During the year £24,000 (2022: £24,000) was paid to The Springton
Trust & Queens Road Mines, in which David Clarke is a Trustee, in respect
of Directors fees and consultancy services.
Rupert Verco was the highest paid Director for the year who received
remuneration of £149,934.
6. INCOME TAXES
a) Analysis of tax in the period
31 December 31 December
2024 2023
£ £
Current tax - -
Deferred taxation - -
- -
b) Factors affecting tax charge or credit for the period
The tax assessed on the loss on ordinary activities for the period differs
from the standard rate of corporation tax in the UK of 19% (2023: 19%) and
Australia of 25% (2023: 25%). The differences are explained below:
31 December 31 December
2024 2023
£ £
Loss on ordinary activities before tax (423,336) (921,113)
Loss multiplied by weighted average applicable rate of tax (93,134) (202,645)
Effects of:
Expenses not deductible for tax (2,756) 11,068
Losses carried forward not recognised as deferred tax assets 95,890 191,577
- -
The weighted average applicable tax rate of 22% (2023: 22%) used is a
combination of the standard rate of corporation tax rate for entities in the
United Kingdom of 19% (2023: 19%), and 25% (2023: 25%) in Australia.
No deferred tax asset has been recognised due to uncertainty over future
profits. Tax losses in the United Kingdom of approximately £1,920,000 (2023:
£1,497,000) have been carried forward.
7. EARNINGS PER SHARE
Basic and diluted loss per share is calculated by dividing the loss attributed
to ordinary shareholders of £423,336 (2023: £921,113 loss) by the weighted
average number of shares of 641,629,072 (2023: 524,970,043) in issue during
the year.
The basic and dilutive loss per share are the same as the effect of the
exercise of share warrants and options would be anti-dilutive.
8. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS
2024 Investments Total
Company £ £
At 1 January 2024 562,260 562,260
At 31 December 2024 562,260 562,260
2023 Investments Total
Company £ £
At 1 January 2023 432,260 432,260
At 31 December 2023 432,260 432,260
Investments in Group undertakings are stated at cost less impairment. In 2019
the Company acquired 100% of the issued share capital of Lady Alice Mines Pty
Ltd and in turn, 100% of the units in the Lady Alice Trust which is wholly
owned by Lady Alice Mines Pty Ltd.
At 31 December 2024 and 2023 the Company held the following interests in
subsidiary undertakings, which are included in the consolidated financial
statements and are unlisted.
Name of company Registered office address Proportion held Business
Lady Alice Mines Pty Ltd Level 2, 40 Kings Park Road, West Perth, WA, Australia 100% Mining
Lady Alice Mines Unit Trust(1) Level 2, 40 Kings Park Road, West Perth, WA, Australia 100% Mining
( )
(1)Lady Alice Mines Pty Ltd is the Trustee company of the Lady Alice Mines
Unit Trust.
9. INTANGIBLE FIXED ASSETS
Intangible assets comprise exploration and evaluation costs. Exploration and
evaluation assets are all internally generated except for those acquired at
fair value as part of a business combination.
Total
Group £
At 1 January 2023 2,727,290
Additions 531,462
At 1 January 2024 3,258,752
Additions 1,287,164
Foreign exchange movement (227,741)
At 31 December 2024 4,318,175
Total
Company £
At 1 January 2023 -
Additions -
At 1 January 2024 -
Reclassification -
At 31 December 2024 -
The Directors undertook an assessment of the following areas and circumstances
that could indicate the existence of impairment:
• The Group's right to explore in an area has expired, or will expire in the
near future without renewal;
• No further exploration or evaluation is planned or budgeted for;
• A decision has been taken by the Board to discontinue exploration and
evaluation in an area due to the absence of a commercial level of reserves; or
• Sufficient data exists to indicate that the book value will not be fully
recovered from future development and production.
Following their assessment, the Directors concluded that no impairment charge
was necessary for the year ended 31 December 2024 and 2023.
10. PROPERTY, PLANT AND EQUIPMENT
Office Equipment Total
2024 - Group
Cost £ £
At 31 December 2023 4,629 4,629
Additions during the year 2,877 2,877
At 31 December 2024 7,506 7,506
Depreciation
At 31 December 2023 (2,980) (2,980)
Charge for the year - -
At 31 December 2024 (2,980) (2,980)
Net book value
At 31 December 2024 4,526 4,526
Office Equipment Total
2024 - Company
Cost £ £
At 31 December 2023 4,408 4,408
Additions during the year - -
At 31 December 2024 4,408 4,408
Depreciation
At 31 December 2023 (2,980) (2,980)
Charge for the year - -
At 31 December 2024 (2,980) (2,980)
Net book value
At 31 December 2024 1,428 1,428
11. TRADE AND OTHER RECEIVABLES
Group Group Company
31 Dec 2024 31 Dec 2023 31 Dec 2024 Company
31 Dec 2023
Current £ £ £ £
Prepayments 27,886 30,000 27,886 30,000
Intercompany debtors - - 4,991,554 3,810,385
Goods & Services Tax - - - -
Other debtors 116,860 6,248 - 873
144,746 36,248 5,019,440 3,841,258
The intercompany debt is interest free and repayable on demand.
The fair value of trade and other receivables approximates to their book
value. Other classes of financial assets included within trade and other
receivables do not contain impaired assets.
The carrying amounts of the Group and Company's trade and other receivables
are denominated in the following currencies:
Group Group Company 31 Dec 2024 Company 31 Dec 2023
31 Dec 2024 31 Dec 2023
£ £ £ £
UK pounds 144,726 30,873 5,019,440 3,841,258
Australian dollars - 5,375 - -
144,726 36,248 5,019,440 3,841,258
Group Group Company
31 Dec 2024 31 Dec 2023 31 Dec 2024 Company
31 Dec 2023
Non-Current £ £ £ £
Other non-current assets 35,088 31,036 - -
35,088 31,036 - -
Other non-current assets are environmental bonds on the Group's exploration
licences and are all denominated in Australian Dollars.
The fair value of trade and other receivables approximates to their book
value. Other classes of financial assets included within trade and other
receivables do not contain impaired assets.
12. CASH AND CASH EQUIVALENTS
Group Group Company 31 Dec 2024 Company 31 Dec 2023
31 Dec 2024 31 Dec 2023
£ £ £ £
Cash at bank and in hand 795,708 638,475 690,633 313,071
795,708 638,475 690,633 313,071
The fair value of cash at bank is the same as its carrying value.
The carrying amounts of the Group and Company's cash and cash equivalents are
denominated in the following currencies:
Group Group Company 31 Dec 2024 Company 31 Dec 2023
31 Dec 2024 31 Dec 2023
£ £ £ £
UK pounds 690,633 309,881 690,633 309,881
Australian dollars 105,075 328,594 - -
795,708 638,475 690,633 309,881
13. TRADE AND OTHER PAYABLES
Group Group Company 31 Dec 2024 Company 31 Dec 2023
31 Dec 2024 31 Dec 2023
Current £ £ £ £
Trade creditors 61,622 107,726 490 78,759
Accruals 102,601 87,980 43,500 87,980
Other payables 6,878 2,981 23,178 -
171,101 198,687 67,168 166,739
The fair value of trade and other payables approximates to their book value.
The carrying amounts of the Group and Company's trade and other payables are
denominated in the following currencies:
Group Group Company 31 Dec 2024 Company 31 Dec 2023
31 Dec 2024 31 Dec 2023
£ £ £ £
UK pounds 164,222 188,206 67,168 166,739
Australian dollars 6,879 10, 481 - -
171,101 198,687 67,168 166,739
14. CONTINGENT CONSIDERATION
2024 Total
Group and Company £
Amounts payable under business combination as at 1 January 2024 163,225
Remeasurement of contingent consideration (43,527)
At 31 December 2024 119,698
Categorised as:
Current liabilities 119,698
Non-current liabilities -
Refer to note 18 for further detail.
2023 Total
Group and Company £
Amounts payable under business combination as at 1 January 2023 148,914
Remeasurement of contingent consideration 14,311
At 31 December 2023 163,225
Categorised as:
Current liabilities 163,225
Non-current liabilities -
During the year 2024, there has been a movement in the Contingent
Consideration of £43,527 reflecting a change in fair value estimates. The
Contingent Consideration as at 31 December 2024 of £119,698, reflects the
fair value amount still outstanding. Fair value measurement was based on a
quoted price in an active market (Level 1).
15. SHARE CAPITAL
Dec Dec 2023
2024
Number Share Capital Share Premium Number Share Capital Share Premium
of shares £ £ of shares £ £
Issued, called up and fully paid
Ordinary shares of £0.01
As at the start of the year 592,379,550 5,923,794 2,785,366 515,249,550 5,152,494 2,794,649
Issued in the year 151,981,910 1,518,117 108,468 77,130,000 771,300
Issued for Wudinna Project 52,010,000 5,200,100 - - - -
Issued for Fees 2,500,000 26,701 - - - -
Share Issue costs (72,695) - - (6,900)
Warrants issued (2,383)
Total 798,871,460 7,988,713 2,821,139 592,379,550 5,923,794 2,785,366
On 16 January 2024, 22,000,000 Ordinary shares were issued pursuant to a
private placement at 1.0 pence each.
On 16 January 2024, 52,010,000 Ordinary shares were issued at 1.0 pence each
as consideration for the remaining 25% interest in the Wudinna REE Project.
On 2 May 2024, 57,500,000 Ordinary shares were issued pursuant to a private
placement at 1.0 pence each.
On 2 May 2024 2,500,000 Ordinary shares were issued at 1.0 pence each to third
party suppliers for settlement of fees in lieu of cash
On 2 December 2024 73,311,910 Ordinary shares were issued pursuant to a
private placement at 1.15 pence each.
Each Ordinary share is entitled to one vote in any circumstances. Each
Ordinary share is entitled pari passu to dividend payments or any other
distribution and to participate in a distribution arising from a winding up of
the Company.
As at 31 December 2024 the Company had 163,399,289 warrants outstanding and
exercisable (2023: 126,743,334).
16. SHARE BASED PAYMENTS
2024
Warrants
Warrants Number Weighted average exercise price
Warrants at 31 December 2023 126,743,334 £0.02
Granted during year 36,655,955 £0.02
Exercised during year - -
Lapsed during year - -
163,399,289 £0.02
Warrants at 31 December 2024
Exercisable at year end 163,399,289 £0.02
At 31 December 2024 the weighted average remaining contractual life of the
warrants outstanding was 1.56 years.
2023
Warrants
Warrants Number Weighted average exercise price
Warrants at 31 December 2022 49,613,334 £0.03
Granted during year 77,130,000 £0.13
Exercised during year - -
Lapsed during year - -
126,743,334 £0.02
Warrants at 31 December 2023
Exercisable at year end 126,743,334 £0.02
At 31 December 2023 the weighted average remaining contractual life of the
warrants outstanding was 2.46 years.
2024
Options
Options Number Weighted average exercise price
Options at 31 December 2023 18,000,000 £0.033
Issued during the period - -
Lapsed during the year - -
Options at 31 December 2024 18,000,000 £0.033
Exercisable at year end - -
At 31 December 2024 the weighted average remaining contractual life of the
options outstanding was 0.79 years.
The fair value of options is valued using the Black-Scholes pricing model. An
expense of £30,997 (2023: £36,000) has been recognised in the year in
respect of share options granted.
2023
Options
Options Number Weighted average exercise price
Options at 31 December 2022 18,672,336 £0.033
Issued during the period - -
Lapsed during the year (672,336) £0.015
Options at 31 December 2023 18,000,000 £0.033
Exercisable at year end - -
At 31 December 2023 the weighted average remaining contractual life of the
options outstanding was 1.79 years The fair value of equity settled share
options and warrants granted is estimated at the date of grant using a
Black-Scholes option pricing model, taking into account the terms and
conditions upon which the options were granted. The following table lists
the inputs to the model:
Options Options Warrants Warrants
Date of grant 14 July 2020 14 January 2022 16 February 2022 26 October 2022
Expected volatility 94.59% 107.33% 104.98% 96.35%
Expected life 5 5 3 3
Risk-free interest rate 0.10% 0.25% 1.29% 3.36%
Expected dividend yield 0.00% 0.00% 0.00% 0.00%
Fair value per option/warrant
£0.008 £0.009 £0.013 £0.009
17. FINANCIAL INSTRUMENTS
Group Group Company Company
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
£ £ £ £
Financial assets at amortised cost
Trade and other receivables excluding prepayments 20 6,248 4,874,714 3,811,254
Cash and cash equivalents 795,708 638,475 690,633 313,471
795,728 644,723 5,565,347 4,124,725
Financial liabilities
Trade and other payables (at amortised cost) (68,697) (198,687) (490) (166,739)
Deferred consideration (at FVPL) (119,698) (163,225) (119,698) (163,225)
(188,395) (361,912) (120,188) (329,964)
18. BUSINESS COMBINATION
Lady Alice Mines Pty Ltd
On 7 March 2019, the Company acquired 100% of the share capital of Lady Alice
Mines Pty Ltd ('LAM') and its wholly owned subsidiary The Lady Alice Trust
(the 'Trust'), for total consideration of £432,260 which is to be satisfied
via a mix of cash and share consideration which is shown below. In addition,
the Company agreed to settle existing liabilities due to unitholders of the
Trust of up to A$250,000. The share based payment consideration was settled on
16 January 2020 upon the successful re-admission to the London's Stock
Exchange Main Market. 10,815,297 shares were issued at a close price of 1.25p.
The Trust has an entitlement to earn a 75% equity interest in tenements near
Wudinna in South Australia for gold exploration (the 'Wudinna Agreement'), and
is also the sole owner of the right, title and interest in the Prince Alfred
Licence, a formerly producing copper mine.
The principal terms of the Wudinna Agreement are as follows:
· Stage 1: the Trust will fund A$2.1 million within three years to earn
a 50% equity position
· Stage 2: at the completion of Stage 1, a joint venture vehicle can be
formed, or alternatively the Trust can spend a further A$1.65 million over an
additional two years to earn a 65% equity interest
· Stage 3: at the completion of Stage 2, a joint venture vehicle can be
formed, or alternatively the Trust can spend a further A$1.25 million within
one year to earn a 75% equity interest
The contingent consideration is due to the unitholders on satisfying the
following project milestones:
· First Option - 14% of the total issued share capital on completion of
Stage 1
· Second Option - 21% of the total issued share capital on completion
of Stage 2
· Third Option - 30,000,000 ordinary shares on announcement of a
JORC-compliant Indicated Mineral Resource for the Wudinna Project of not less
than 750,000 ounces of gold
The Directors have calculated the consideration payable on a probability basis
of satisfying the project milestones in accordance with IFRS 3 Business
Combinations. The Directors have also estimated the number of shares to be
issued at each milestone and the share price. This has been fixed at the
number of consideration shares issued at the time of the RTO and the share
price at that time. Management believe that the fair value of contingent
consideration was £119,698 (2023: £163,225) as at reporting date.
19. RELATED PARTY TRANSACTIONS
Group
Transactions between the Company and its subsidiary, which are related
parties, have been eliminated on consolidation and are disclosed in this part
of the note.
Key management compensation
Save as disclosed below there were no related party transactions during the
year other than remuneration to Directors disclosed in note 5.
During the year, the Group paid £148,675 to Rupert Verco, Chief Executive
Officer/Managing Director of the Company.
Company
Management charges payable by the subsidiary were £62,741 (2023: £81,970),
and are included in the balance of the receivables due from Lady Alice Mines
Pty Ltd.
As at 31 December 2024 included in the other receivables is £4,730,004 (2023:
£3,810,385) due from Lady Alice Mines Pty Ltd, a subsidiary company. A loan
of £144,711 is subject to interest and is repayable on demand, however, to
date neither party has enforced interest. The remainder of the loans are
interest free and repayable on demand.
20. FINANCIAL RISK MANAGEMENT
20.1 Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk,
credit risk and liquidity risk. The Group's overall risk management programme
focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group's financial performance.
Risk management is carried out by executive management.
a) Market risk
The Group is exposed to market risk, primarily relating to foreign exchange
and commodity prices. The Group does not hedge against market risks as the
exposure is not deemed sufficient to enter into forward contracts. The Company
has not sensitised the figures for fluctuations in foreign exchange or
commodity prices as the Directors are of the opinion that these fluctuations
would not have a significant impact on the Financial Statements at the present
time. The Directors will continue to assess the effect of movements in market
risks on the Group's financial operations and initiate suitable risk
management measures where necessary.
b) Credit risk
Credit risk arises from cash and cash equivalents as well as outstanding
receivables. To manage this risk, the Group periodically assesses the
financial reliability of customers and counterparties.
The amount of exposure to any individual counter party is subject to a limit,
which is assessed by the Board.
The Group considers the credit ratings of banks in which it holds funds in
order to reduce exposure to credit risk. The Company will only keep its
holdings of cash with institutions which have a minimum credit rating of 'A'.
c) Liquidity risk
The Company's continued future operations depend on the ability to raise
sufficient working capital through the issue of equity share capital or debt.
The Directors are reasonably confident that adequate funding will be
forthcoming with which to finance operations. Controls over expenditure are
carefully managed.
The following table summarizes the Group's significant remaining contractual
maturities for financial liabilities at 31 December 2024 and 2023.
Contractual maturity analysis as at 31 December 2024 and 2023
2024 2023
Less than 12 Less than 12
Months 1 - 5 Months 1 - 5
£ Year Total £ Year Total
£ £ £ £
Accounts payable 61,132 - 61,132 107,726 - 107,726
Accrued liabilities 102,601 - 102,601 87,980 - 87,980
Other payables 7,368 - 7,368 2,981 - 2,981
171,101 - 171,101 198,687 - 198,687
20.2 Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern, in order to enable the Group to
continue to explore, develop and mine precious and base metal projects. In
order to maintain or adjust the capital structure, the Group may adjust the
issue of shares or sell assets to reduce debts.
The Group defines capital based on the total equity and reserves of the Group.
The Group monitors its level of cash resources available against future
planned operational activities and may issue new shares in order to raise
further funds from time to time.
21. CAPITAL COMMITMENTS & CONTINGENT LIABILITIES
As at 31 December 2024 the Group had £135,000 (2023: £105,000) of minimum
licence expenditure commitments required in order to maintain its exploration
licences in good standing, but is not committed capital expenditure at year
end.
There were no changes to contingent liabilities as at 31 December 2024.
22. POST YEAR END EVENTS
On the 13th January 2025, Cobra announced it aims to drill a further ~40 holes
during January to complete Stage 1 aircore drilling aimed at providing
sufficient geological
definition to support a maiden REE resource estimation.
On the 28(th) January 2025, Cobra announced the Successful Production of First
MREC from Boland.
On the 24(th) February 2025, Cobra informed the market Ausum Pty Ltd has
informed the Company that it has acquired the 52,010,000 ordinary shares held
by Peninsula Resources Pty Ltd (Andromeda Metals Ltd) in an off-market
transfer. Following the transaction, Ausum Pty Ltd holds 6.50% of the issued
capital of the Company.
On the 4(th) March 2025, Cobra inform the market of the results of the General
Meeting with all resolutions were duly passed by the requisite majorities.
Resulting in the approval and issue of tranche 2 shares raising a further
£765,000 as announced on the 26(th) November 2024.
23 ULTIMATE CONTROLLING PARTY
There is no ultimate controlling party.
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