REG - GreenX Metals Ltd - Half-year Report
12/03/2025 07:00
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RNS Number : 3144A GreenX Metals Limited 12 March 2025
Interim Financial Report
for the Half-Year Ended
31 December 2024
GreenX Metals Limited
ABN 23 008 677 852
CORPORATE DIRECTORY
DIRECTORS: BANKERS:
Mr Ian Middlemas Chairman
Mr Benjamin Stoikovich Director and CEO National Australia Bank Ltd
Mr Garry Hemming Non-Executive Director
Australia and New Zealand Banking Group Ltd
Mr Mark Pearce Non-Executive
Director
Mr Dylan Browne Company Secretary SHARE REGISTRIES:
Australia:
PRINCIPAL OFFICES: Computershare Investor Services Pty Ltd
London:
Level 17, 221 St Georges Terrace
Unit 3C, 38 Jermyn Street
Perth WA 6000
London SW1Y 6DN
Tel: +61 8 9323 2000
United Kingdom
Tel: +44 207 487 3900
United Kingdom:
Computershare Investor Services PLC
The Pavilions, Bridgewater Road
Australia (Registered Office):
Bristol BS99 6ZZ
Level 9, 28 The Esplanade
Tel: +44 370 702 0000
Perth WA 6000
Tel: +61 8 9322 6322
Fax: +61 8 9322 6558
Poland:
Komisja Nadzoru Finansowego (KNF)
Plac Powstańców Warszawy 1, skr. poczt. 419
SOLICITORS:
00-950 Warszawa
Thomson Geer
Tel: +48 22 262 50 00
AUDITOR: STOCK EXCHANGE LISTINGS:
UHY Haines Norton - Sydney
Australia:
UHY ECA - Poland
Australian Securities Exchange - ASX Code: GRX
United Kingdom:
London Stock Exchange (Main Board) - LSE Code: GRX
Poland:
Warsaw Stock Exchange - GPW Code: GRX
CONTENTS
Directors' Report
Directors' Declaration
Consolidated Statement of Profit or Loss and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Condensed Notes to the Consolidated Financial Statements
Auditor's Independence Declaration
Independent Auditor's Review Report
DIRECTORS REPORT
The Directors of GreenX Metals Limited present their report on the
Consolidated Entity consisting of GreenX Metals Limited (Company or GreenX)
and the entities it controlled during the half-year ended 31 December 2024
(Consolidated Entity or Group).
OPERATING AND FINANCIAL REVIEW
Operations
Highlights during and subsequent to the half year end include:
· German Project - Tannenberg Copper Project
o In January 2025, GreenX was selected as as one of eight exploration
companies to participate in BHP's 2025 Xplor program.
o BHP Xplor will provide GreenX with approximately US$500,000 in
non-dilutive funding to support and accelerate its exploration plans at the
Tannenberg Copper Project (Tannenberg) during the 6-month period of the
program.
o BHP Xplor is expected to accelerate the geological concept build-out and
exploration timeframe at Tannenberg.
· Greenland Projects
o The Company notes the recent U.S. strategic interest in Greenland
including Greenland Prime Minister publicly stating that he is open to
discussions with the U.S.
o Greenland is endowed with an abundance of critical minerals which are
essential for batteries, technology and defence.
o The Company is well placed to capitalise on the increased interest in
Greenland with two large scale, strategic projects prospective for critical
minerals located in Greenland.
· Eleonore North Project
o During the period, GreenX received outstanding antimony results at the
Eleonore North project in Greenland (Eleonore North or ELN).
o Antimony price now US$49,000/t from historical prices of ~US$5,000 to
10,000/t.
o Critical mineral crisis escalating - China has now restricted export of
critical and strategic antimony, graphite, gallium, germanium, tungsten,
titanium and rare earths.
o Antimony has been designated as a "Critical Mineral" by the U.S. and the
EU, with NATO designating tungsten as defence-critical for the Allied defence
industry.
o Historical results from fieldwork at ELN include grab samples from
outcropping mineralised veins with individual specimens grading up to 23%
antimony (Sb), and other samples up to 4g/t gold (Au).
o Antimony mineralisation has been identified along a ~4km trend in veins
and structures, that broadly aligns with previously identified gold veining at
surface within a 15km trend.
o Review and verification of new historical data, including radiometric
data, at ELN underway.
· Arctic Rift Copper Project
o The Company is targeting large scale copper in multiple settings across
a 5,774 km(2) licence at the Arctic Rift Copper Project (ARC).
o Further analysis on remote-sensing options underway which aims to
improve understanding of the known copper mineralisation and to plan the next
exploration program at the project.
· Arbitration Award
o During the period, GreenX was awarded up to £252 million (A$510 million
/ PLN 1.3 billion) in compensation (Award) from the successful outcome of the
international arbitration claims against the Republic of Poland (Poland) under
both the Australia-Poland Bilateral Investment Treaty (BIT) and the Energy
Charter Treaty (ECT).
o Interest income of ~£14 million (A$28 million / PLN 70 million) per
annum is currently accruing to GreenX. Against this, interest expense of
~£2.7 million (A$5.5 million / PLN 13.5 million) per annum is accruing on the
US$11.3 million of litigation funding utilised.
o Upon satisfaction of the Award, it is GreenX's intention to return the
majority of the available cash to shareholders.
o Since the Award was made, Poland has lodged a request to set-aside the
award with the courts of England and Wales in relation to the BIT award and
the courts of Singapore in relation to the ECT award. Poland is challenging
jurisdictional aspects of both awards and alleging procedural unfairness,
including in the Tribunal's decision on damages.
o The Company is strongly defending the set-aside motions
Tannenberg Copper Project (Germany)
Subsequent to the period end, the Company announced that following a rigorous
selection process, it has been selected as one of eight exploration companies
to participate in BHP's 2025 Xplor program in relation to Tannenberg.
The Xplor program was established in 2023 to support promising minerals
explorers to accelerate the exploration needed to support the energy
transition. Over a six-month program period, BHP Xplor targets development of
technical, business and operational excellence within participating companies.
As a 2025 BHP Xplor cohort company, GreenX will receive a non-dilutive grant
of up to US$500,000 (US$250,000 as first instalment received in January 2025),
and in-kind services, mentorship, and networking opportunities with BHP and
other industry experts and investors.
It is expected GreenX's participation in Xplor will expedite the build-out of
geological concepts and the exploration timeframe at Tannenberg. GreenX
intends to use the grant to conduct geophysics programs over the Tannenberg
licence area.
Figure 1: Tannenberg is located in the industrial centre of Europe
GREENLAND PROJETCS
Eleonore North Project
During the period, GreenX announced that high grade antimony mineralisation
had been identified at its Eleonore North project in Greenland, based on
historical results recently released by the Geological Survey of Denmark and
Greenland (GEUS). The historical results indicate the potential for a
high-grade antimony-gold mineral system at ELN. Antimony prices have been on a
rapid uptrend since China announced antimony export controls from 15 September
2024, with antimony prices in the US having rocketed to over US$49,000/t from
US$18,300/t(2).
Figure 2: Newly released GEUS assay results show evidence for high-grade
antimony and gold mineralisation above the interpreted Noa Pluton.
Previously reported historical data confirmed the presence of gold and
high-grade antimony in outcropping veins at ELN including:
· 14m long chip sample grading 7.2% Sb and 0.53g/t Au(3)
· 40 m chip line with a length weighed average of 0.78g/t Au(3)
Significantly, GEUS geologist's identified stibnite (Sb(2)S(3)) as the
antimony mineral. Stibnite is well-understood and the predominant ore mineral
for commercial antimony production.
Antimony is designated a Critical Raw Material by both the EU and the U.S.,
with China being the world's major antimony ore producer and major exporter of
refined antimony oxides and metallic antimony.
Global strategic interest in antimony has significantly increased in 2024 due
to several factors:
· China controls ~50% of global antimony mining, most downstream
processing and 32% of global resources according to the Lowy Institute.
· China's recent export ban on antimony, effective from 15
September 2024, has caused market disruption(4).
· Antimony is a crucial material in the defence supply chain, used
in various military applications including ammunition, flame retardants, and
smart weaponry.
· Antimony is essential in renewable energy technologies including
more-energy-efficient solar panel glass and in preventing thermal runaway in
batteries.
The antimony market is expected to grow by 65% between 2024 and 2032(5).
However, the supply side, declining antimony grades and depleting resources
for existing mines are becoming increasingly relevant.
To aid the Company's exploration targeting and fieldwork planning for ELN,
GreenX's technical team intend to locate, analyse, and study further
historical samples and data within GEUS's archives.
ANTIMONY RESULTS FROM NEWLY PUBLISHED GEOLOGICAL SURVEY ARCHIVE MATERIAL
GEUS's archives host an extensive collection of rock samples (with and without
assays), maps, as well as government and company reports going back many
decades. A sub-set of the archive material is available in digital format.
GEUS is continuously digitising and publishing its archive material. The newly
released data covers 2008 field work at the Noa Dal valley within the
Company's ELN project. Government geologists collected mineralised samples
from outcropping veins and scree near to the interpreted Noa Pluton. Selected
highlights are presented in Table 1 below.
Table 1: Selected antimony and gold results from 2008 GEUS fieldwork
Sample # Sb (%) Au (g/t) Field description
469506 23.40 0.00 Quartz vein with stibnite. Sample from boulder or scree
496901 22.20 0.44 Massive stibnite from mineralised zone
496918 15.10 0.54 Quartz vein + galena + chalcopyrite
469504 6.65 0.83 Shale with stibnite
496912 0.10 4.10 Clay alteration: hanging wall
496904 0.11 4.70 Clay alteration: footwall
496910 0.04 2.20 Intense clay alteration
These newly released results conform with previously released historical
results from the Noa Dal area (previously reported in ASX announcement dated
10 July 2023).
GEOLOGICAL SIGNIFICANCE OF ANTIMONY
GreenX is targeting Reduced Intrusion-related Gold Systems (RIRGS) at ELN. The
hypothesised blind-to-the-surface Noa Pluton forms the basis for the RIRGS
exploration model. Antimony-gold veins at surface were considered to be
supporting evidence for RIRGS at ELN. With the favourable shift in the
antimony market, the outcropping veins have become a potentially viable and
attractive target.
The antimony-gold mineralisation at ELN could be analogous to Perpetua
Resources' Stibnite Gold Project in Idaho, USA. There, RIRGS and orogenic gold
mineralisation styles overprint each other. Prior to the RIRGS model at ELN,
the gold-bearing veins at Noa Dal were thought to be of orogenic origin. It is
relatively common in gold deposits which are proximal to intrusions to feature
characteristics of RIRGS and orogenic gold mineralisation styles.
The scale and potential of the antimony-gold veins will be evaluated with a
follow-up investigation in the next phase of fieldwork.
GEUS is in the process of releasing results from regional mapping and sampling
surveys from field seasons in 2022 and 2023 across East Greenland. GreenX
plans to use the soon-to-be-released data as part of ongoing evaluation of the
antimony and gold potential at ELN and the region.
Given recent developments in the antimony market, GreenX's exploration
strategy at the ELN project in East Greenland will continue with a renewed
focus on the known Sb-Au mineral systems at the Noa pluton.
GreenX has been able to access further historical data for ELN with a review
currently underway. Following completion of this review further updates will
be made.
Arctic Rift Copper Project
ARC in Greenland is an exploration joint venture between GreenX and
Greenfields Pty Ltd (Greenfields). GreenX can earn-in up to 80% in ARC with
the Company currently owning a 51% interest in the project. The project is
targeting large scale copper in multiple settings across a 5,774 km(2) Special
Exploration Licence in eastern North Greenland. The area has been historically
underexplored yet is prospective for copper, forming part of the newly
identified Kiffaanngissuseq metallogenic province.
The results of work program announced previously have demonstrated the
high-grade nature of the known copper sulphide mineralisation and wider copper
mineralization in fault hosted Black Earth zones and adjacent sandstone units.
The exact position of a native copper fissure at the Neergaard Dal prospect
was also identified.
The Company is in the process of analysing further remote-sensing options for
ARC, which would be used to enhance current understanding of the known
copper sulphide mineralisation and refine plans for the next exploration
program.
Successful Arbitration Outcome in Dispute with Polish Government
In October 2024, GreenX reported a successful outcome of the international
arbitration claims (Claim) against Republic of Poland (Poland or Respondent)
under both the BIT and the ECT (together the Treaties).
The Company was awarded:
· Up to £252m (A$510m / PLN1.3bn) in compensation by the Tribunal
under the BIT (BIT Award) which includes interest compounded at Sterling
Over-Night Interbank Average (SONIA) plus one percentage point (+1%)
compounded annually from 31 December 2019 to the date of the Award (7 October
2024).
· ~ £183m (A$355m / PLN 941m) in compensation by the Tribunal
under the ECT (ECT Award), which includes interest compounded at the SONIA
overnight rate +1% compounded annually from 31 December 2019. Interest will
continue to accrue at SONIA +1% compounded annually until full and final
payment by the Respondent.
· Additional Interest of ~ £6 million (A$12 million / PLN 30
million) has accrued since the Award to the date of this report and will
continue to compound annually until full and final payment by the Respondent.
· Interest income of ~£14 million (A$28 million / PLN 70 million)
per annum is currently accruing to GreenX. However, interest expense of only
~£2.7 million (A$5.5 million / PLN 13.5 million) per annum is accruing on the
US$11.3 million of litigation funding utilised.
· Both Awards are subject to any payments made by the Respondent to
the Claimant in the other arbitration such that the Claimant is not entitled
to double compensation i.e., any amount paid by Poland in one arbitration
(i.e., ECT) is set off against Poland's liability in the other arbitration
(i.e., BIT).
The compensation is denominated in British pound sterling. No hedging is in
place for the compensation and accordingly is subject to fluctuations in
foreign currency.
During the period, the Polish Prime Minister, Mr Donald Tusk, stated in a
press conference that:
"The case is rather hopeless, because a lost arbitration is a lost
arbitration. We have two big cases on our shoulders. The PiS government blew
this issue.
The Australians, as you know, were promised that their mine would be built
there. For years they were misled and later the commitment was withdrawn. It
was quite obvious that they would go to arbitration, and it was rather obvious
that they would win this arbitration.
Speaking frankly, I would most likely, and I cannot exclude that it will go
this way, to find the person directly responsible for Poland now having to pay
well over a billion zloty if we do not find a legal solution - which I think
has very little probability to set aside the award in this arbitration. So,
speaking the truth, I will expect my officers to inform the public in the
coming days who made a decision or refrained from making a decision with the
consequence of these gigantic losses, that is the compensation that we as the
Polish State must pay to the Australians." (1)
Since the Award was made, Poland has lodged a request to set-aside the Award
with the courts of England and Wales in relation to the BIT Award and the
courts of Singapore in relation to the ECT Award. Poland is challenging
jurisdictional aspects of both Awards and alleging procedural unfairness,
including in the Tribunal's decision on damages.
The threshold to succeed on a set-aside motion in either the English or
Singapore courts is very high, with the courts rejecting set-aside
applications in the vast majority of cases.
It is important to note that a "set-aside" motion is different from a general
"appeal" since a set-aside motion can in general only relate to a lack of
jurisdiction on the part of the Tribunal or procedural unfairness. Under both
set-aside motions, the actual merits of the Claim cannot be revisited by the
courts.
The Company is strongly defending the set-aside motions and will update the
market, if required, in line with its continuous disclosure requirements.
All of GreenX's costs associated with the Claim were funded on a limited basis
from Litigation Capital Management (LCM). To date, GreenX has drawn down
US$11.3 million from LCM. Once the Award compensation is received from Poland,
LCM will be entitled to be paid back the US$11.3 million, a multiple of five
times of the US$11.3 million and, from 1 January 2025, interest on the US$11.3
million at a rate of 30% per annum, compounding monthly (which equates to
interest of approximately US$3.4 million (£2.7 million / A$5.5 million / PLN
13.5 million) per annum).
Further information on the Claim and Award can be found in the Company's
announcements dated 8 October 2024, 17 October 2024, 11 November 2024 and 22
January 2025.
Corporate
At 31 December 2024, GreenX had a cash balance of A$4.8 million allowing
further exploration to be conducted at the Company's projects and to strongly
defend the set-aside motions.
Directors
The names and details of the Company's Directors in office at any time during
the half-year and until the date of this report are:
Directors:
Mr Ian
Middlemas
Chairman
Mr Benjamin Stoikovich
Director and CEO
Mr Garry Hemming
Non-Executive Director
Mr Mark
Pearce
Non-Executive Director
Unless otherwise shown, all Directors were in office from the beginning of the
half-year until the date of this report.
Results of Operations
The net loss of the Consolidated Entity for the half-year ended 31 December
2024 was $2,092,947 (31 December 2023: $1,997,911 ). Significant items
contributing to the current half-year loss and the substantial differences
from the previous half-year include to the following:
(i) Arbitration related expenses of $723,787 (31 December
2023: $594,802) relating to the Claim against the Republic of Poland including
set-aside defence costs (which are currently unfunded). This has been offset
by the arbitration funding income of $251,593 (31 December 2023: $404,858);
(ii) Exploration and evaluation expenses of $338,762 (31
December 2023: $466,094), which is attributable to the Group's accounting
policy of expensing exploration and evaluation expenditure incurred by the
Group subsequent to the acquisition of rights to explore and up to the
commencement of a bankable feasibility study for each separate area of
interest;
(iii) Business development expenses of $314,855 (31 December 2023:
$195,882) which includes expenses relating to the Group's review of new
business and project opportunities; including business development costs for
the Tannenberg transaction in the period, plus also investor relations
activities during the six months to 31 December 2024 including public
relations, digital marketing, and business development consultant costs; and
(iv) Interest income of $141,391 (31 December 2023: $252,221)
earned on cash and cash equivalents held by the Group.
Financial Position
At 31 December 2024, the Group had cash reserves of $4,831,121 (30 June 2024:
$7,170,793) placing it in a good financial position strongly defend the
set-aside motions and continue with exploration activities at its projects.
At 31 December 2024, the Company had net assets of $13,724,522 (30 June 2024:
$15,149,710) a decrease of approximately 10% compared with 30 June 2024.
This is largely attributable to the decrease in cash, which has been offset by
the increase in exploration and evaluation assets which amounts to
A$10,268,308 (30 June 2024: $9,372,906).
Selected Financial Data (Converted into PLN And EUR)
Half-Year Ended Half-Year Ended Half-Year Ended Half-Year Ended
31 December 2024
31 December 2023
31 December 2024
31 December 2023
PLN
PLN
EUR
EUR
Arbitration finance facility income 657,804 1,088,623 153,070 244,981
Gas and property lease revenue - 7,193 - 1,619
Exploration and evaluation expenses (885,710) (1,253,279) (206,103) (282,035)
Arbitration related expenses (1,892,377) (1,599,361) (440,352) (359,916)
Net loss for the period (5,472,116) (5,372,179) (1,273,350) (1,208,943)
Net cash flows from operating activities (4,906,747) (3,885,394) (1,141,790) (874,360)
Net cash flows from investing activities (505,887) (4,737,288) (117,719) (1,066,068)
Net cash flows from financing activities (704,556) (429,445) (163,949) (96,641)
Net increase in cash and cash equivalents (6,117,190) (9,052,127) (1,423,458) (2,037,070)
Basic and diluted loss per share (Grosz/EUR cents per share) (1.95) (1.97) (0.45) (0.44)
31 December 2024 30 June 2024 31 December 2024 30 June 2024
PLN
PLN
EUR
EUR
Cash and cash equivalents 12,321,290 19,203,384 2,883,522 4,452,442
Total Assets 40,663,983 46,078,351 9,516,495 10,683,596
Total Liabilities (5,660,965) (5,507,428) (1,324,822) (1,276,937)
Net Assets 35,003,018 40,570,922 8,191,673 9,406,659
Contributed equity 236,963,294 240,800,894 55,140,870 55,831,415
Figures of the consolidated statement of profit or loss and other
comprehensive income and consolidated statement of cash flows have been
converted into PLN and EUR by applying the arithmetic average for the final
day of each month for the reporting period, as published by the National Bank
of Poland (NBP). These exchange rates were 2.6146 AUD:PLN and 4.2974 PLN:EUR
for the six months ended 31 December 2024, and 2.6889 AUD:PLN and 4.4437
PLN:EUR for the six months ended 31 December 2023.
Assets and liabilities in the consolidated statement of financial position
have been converted into PLN and EUR by applying the exchange rate on the
final day of each respective reporting period as published by the NBP. These
exchange rates were: 2.5504 AUD:PLN and 4.2730 PLN:EUR on 31 December 2024,
and 2.6780 AUD:PLN and 4.3130 PLN:EUR on 30 June 2024.
Business Strategies and Prospects for Future Financial Years
GreenX's strategy is to create long-term shareholder value through the
discovery, exploration, development and acquisition of technically and
economically viable mineral deposits. This also includes enforcing the Award
in relation to the Claim against Poland in the short to medium term.
To date, the Group has not commenced production of any minerals, nor has it
identified any ore reserves in accordance with the JORC Code. To achieve its
objective, the Group currently has the following business strategies and
prospects over the medium to long term:
· Continue to enforce the Award against Poland and defend its
rights in relation to the Claim and set-aside motions;
· Use Xplor funding at Tannenberg to accelerate the geological
concept build-out and exploration timeframe plus extend the exploration
licence prior to its expiry;
· Continue with exploration activities in Greenland; and
· Identify and assess other suitable business opportunities in
the resources sector.
All of these activities are inherently risky and the Board is unable to
provide certainty of the expected results of these activities, or that any or
all of these likely activities will be achieved. Furthermore, GreenX will
continue to take all necessary actions to preserve the Company's rights and
protect its investments in Poland, if and as required. The material business
risks faced by the Group that could have an effect on the Group's future
prospects, and how the Group manages these risks, include the following:
· Litigation risk - All industries, including the mining
industry, are subject to legal and arbitration claims. Specifically, and as
noted above, the Company was successful in its Claim against Poland and has
been awarded £252m in compensation for breach of Poland's obligations under
the Treaties. Subsequently, in November 2024, Poland lodged a request to
set-aside the BIT Award in the courts of England and Wales and in January 2025
Poland lodged it's request to set-aside the ECT Award in the courts of
Singapore. The Company will strongly defend the set-aside motions in the
relevant courts. Whilst the Company is extremely confident in the strength
of the Award, as reflected in the unanimous Tribunal decision, there is no
certainty that the set-aside motions or that a correction of damages filings
made by Poland will be rejected. If these motions are not rejected, and the
Award is not upheld or the damages amount is lowered compared to original
amount awarded, then this may have a material impact on the value of the
Company's securities.
· Earn-in and joint venture contractual risk - The Company's
earn-in right to Tannenberg and ARC are subject to separate earn-in
agreements. The Company's ability to achieve its objectives is dependent on it
and other parties complying with their obligations under these agreements. Any
failure to comply with these obligations may result in the Company not
obtaining further interests in the projects and being unable to achieve its
commercial objectives, which may have a material adverse effect on the
Company's operations and the performance and value of the Shares. There is
also the risk of disputes arising with the Company's joint venture partners,
the resolution of which could lead to delays in the Company's proposed
development activities or financial loss. The nature of the joint ventures may
change in future, including the ownership structure and voting rights, which
may have an effect on the ability of the Company to influence decisions on the
projects.
· Operations in overseas jurisdictions risk - The Company's
exploration projects are located overseas, in Germany and Greenland, and as
such, the operations of the Company will be exposed to related risks and
uncertainties associated with overseas country, regional and local
jurisdictions. Opposition to the projects, or changes in local community
support for the projects, along with any changes in mining or investment
policies or in political attitude in Germany or Greenland and, in particular
to the mining, processing or use of copper or gold, may adversely affect the
operations, delay or impact the approval process or conditions imposed,
increase exploration and development costs, or reduce profitability of the
Company. Moreover, logistical difficulties may arise due to the assets being
located overseas such as the incurring of additional costs with respect to
overseeing and managing the projects, including expenses associated with
taking advice in relation to the application of local laws as well as the cost
of establishing a local presence in Greenland. Fluctuations in the currency of
Germany or Greenland may also affect the dealings and operations of the
Company.
Failure to comply strictly with applicable laws, regulations and local
practices relating to mineral rights applications and tenure, could result in
loss, reduction or expropriation of entitlements, or the imposition of
additional local or foreign parties as joint venture partners with carried or
other interests. Further, the outcomes in courts in Germany or Greenland may
be less predictable than in Australia, which could affect the enforceability
of contracts entered into by the Company.
The Greenland projects are remotely located in an area that has an arctic
climate and that is categorised as an arctic desert, and as such, the
operations of the Company will be exposed to related risks and uncertainties
of arctic exploration, including adverse weather or ice conditions which may
and has prevented access to the projects, which can impact exploration and
field activities or generate unexpected costs. It is not possible for the
Company to predict or protect the Company against all such risks.
The Company also had previous operations in Poland which may be subject to
regulations concerning protection of the environment, including at the
Debiensko and Kaczyce projects which have both been relinquished by the
Company. As with all exploration projects and mining operations, activities
will have an impact on the environment including the possible requirement to
make good any disturbed or damaged land.
Existing and possible future environmental protection legislation, regulations
and actions could cause additional expense, capital expenditures and
restrictions, the extent of which cannot be predicted which could have a
material adverse effect on the Company's business, financial condition and
results of operations.
· The Group's exploration and development activities will
require further capital - The exploration and any development of the Company's
exploration properties will require substantial additional financing. Failure
to obtain sufficient financing may result in delaying or indefinite
postponement of exploration and any development of the Company's properties or
even a loss of property interest. There can be no assurance that additional
capital or other types of financing will be available if needed or that, if
available, the terms of such financing will be favourable to the Company.
· The Group's exploration properties may never be brought into
production - The exploration for, and development of, mineral deposits
involves a high degree of risk. Few properties which are explored are
ultimately developed into producing mines. To mitigate this risk, the Company
will undertake systematic and staged exploration and testing programs on its
mineral properties and, subject to the results of these exploration programs,
the Company will then progressively undertake a number of technical and
economic studies with respect to its projects prior to making a decision to
mine. However, there can be no guarantee that the studies will confirm the
technical and economic viability of the Company's mineral properties or that
the properties will be successfully brought into production.
· The Group may be adversely affected by fluctuations in gold
and copper prices - The price of gold and copper fluctuates widely and is
affected by numerous factors beyond the control of the Group. Future
production, if any, from the Group's mineral properties will be dependent upon
gold and copper prices being adequate to make these properties economic. The
Group currently does not engage in any hedging or derivative transactions to
manage commodity price risk. As the Group's operations change, this policy
will be reviewed periodically going forward.
· The Group may be adversely affected by competition within the
gold and copper industry - The Group competes with other domestic and
international copper companies, some of whom have larger financial and
operating resources. Increased competition could lead to higher supply or
lower overall pricing. There can be no assurance that the Company will not be
materially impacted by increased competition. In addition, the Group is
continuing to secure additional surface and mineral rights, however there can
be no guarantee that the Group will secure additional surface and mineral
rights, which could impact on the results of the Group's operations.
· The Company may be adversely affected by fluctuations in
foreign exchange - Current and planned activities are predominantly
denominated in Sterling, Danish krone and/or Euros and the Company's ability
to fund these activates may be adversely affected if the Australian dollar
continues to fall against these currencies. The Company currently does not
engage in any hedging or derivative transactions to manage foreign exchange
risk. As the Company's operations change, this policy will be reviewed
periodically going forward.
RELATED PARTY DISCLOSURE
Balances and transactions between the Company and its subsidiaries, which are
related parties to the Company, have been eliminated on consolidation. There
have been no other transactions with related parties during the half-year
ended 31 December 2024, other than remuneration for Key Management Personnel
and payments of $156,000 (31 December 2023: $170,000) to Apollo Group Pty Ltd,
a Company of which Mr Mark Pearce is a Director and beneficial shareholder,
for the provision of serviced office facilities and administration services.
The amount is based on a monthly retainer due and payable in advance, with no
fixed term, and is able to be terminated by either party with one month's
notice. This item has been recognised as an expense in the Statement of Profit
or Loss and other Comprehensive Income.
SUBSTANTIAL SHAREHOLDERS (shareholder with voting power of at least 5%)
Substantial Shareholder notices have been received by the following:
Substantial Shareholder Number of Shares/Votes Voting Power
CD Capital Natural Resources Fund III LP 50,487,925 18.04%
ORDINARY SHARES HELD BY DIRECTORS'
At the Date of this Report 31 December 2024 30 June 2024
Mr Ian Middlemas 11,660,000 11,660,000 11,660,000
Mr Benjamin Stoikovich 819,406 819,406 819,406
Mr Garry Hemming - - -
Mr Mark Pearce 2,850,000 2,850,000 2,850,000
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
(i) On 6 January 2025, GreenX was selected as one of eight exploration
companies to participate in BHP's 2025 Xplor program and will receive a
one-off, non-dilutive grant of up to US$500,000 (US$250,000 received to date).
(ii) On 22 January 2025, GreenX advised that further to Poland's set-aside
motion in relation to the BIT Award, it had lodged a request to set-aside the
ECT Award with the courts of Singapore.
Other than as disclosed above, there were no significant events occurring
after balance date requiring disclosure.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, UHY Haines
Norton, to provide the Directors of GreenX Metals Limited with an Independence
Declaration in relation to the review of the half-year financial report. This
Independence Declaration is on page 21 and forms part of this Directors'
Report.
Signed in accordance with a resolution of the Directors.
BEN STOIKOVICH
Director
11 March 2025
Competent Persons Statement
The information in this report that relates to exploration results were
extracted from the ASX announcement dated 15 July 2024, 2 August 2024 and 27
November 2024 which are available to view at www.greenxmetals.com
(http://www.greenxmetals.com) .
GreenX confirms that (a) it is not aware of any new information or data that
materially affects the information included in the original announcement; (b)
all material assumptions and technical parameters underpinning the content in
the relevant announcement continue to apply and have not materially changed;
and (c) the form and context in which the Competent Person's findings are
presented have not been materially modified from the original announcement.
Forward Looking Statements
This release may include forward-looking statements. These forward-looking
statements are based on GreenX's expectations and beliefs concerning future
events. Forward looking statements are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control of
GreenX, which could cause actual results to differ materially from such
statements. GreenX makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the circumstances
or events after the date of that release.
Sources:
(1) https://www.gov.pl/web/premier/wsparcie-dla-rodzicow-wczesniakow
(https://www.gov.pl/web/premier/wsparcie-dla-rodzicow-wczesniakow) (refer to
the video (29:45-32:00)),
https://biznes.pap.pl/wiadomosci/firmy/unikniecie-wyplaty-odszkodowania-wynikajacego-z-arbitrazu-greenx-malo
(https://biznes.pap.pl/wiadomosci/firmy/unikniecie-wyplaty-odszkodowania-wynikajacego-z-arbitrazu-greenx-malo)
.
(2) SP Angel 22/11/24 & asianmetals.com.
(3) Previously reported - refer to ASX announcement dated 10 July 2023.
(4)
https://chemical.chemlinked.com/news/chemical-news/china-restricts-export-of-antimony-and-related-products
(https://chemical.chemlinked.com/news/chemical-news/china-restricts-export-of-antimony-and-related-products)
.
(5) https://www.fortunebusinessinsights.com/antimony-market-104295
(https://www.fortunebusinessinsights.com/antimony-market-104295) .
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of GreenX Metals Limited, I
state that:
In the reasonable opinion of the Directors and to the best of their knowledge:
(a) the attached financial statements and notes thereto for the
period ended 31 December 2024 are in accordance with the Corporations Act
2001, including:
(i) complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001; and
(ii) giving a true and fair view of the financial position of
the Group as at 31 December 2024 and of its performance for the half-year
ended on that date; and
(b) The Directors Report, which includes the Operating and
Financial Review, includes a fair review of:
(i) important events during the first six months of the current
financial year and their impact on the half-year financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the year; and
(ii) related party transactions that have taken place in the first six
months of the current financial year and that have materially affected the
financial position or performance of the Group during that period, and any
changes in the related party transactions described in the last annual report
that could have such a material effect; and
(c) there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and payable.
On behalf of the Board
BEN STOIKOVICH
Director
11 March 2025
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
Note Half-Year Ended Half-Year Ended
31 December 2024
31 December 2023
$
$
Interest Income 141,391 252,221
Other income 4(a) 260,104 404,858
Exploration and evaluation expenses (338,762) (466,094)
Employment expenses (524,939) (660,233)
Administration and corporate expenses (300,693) (263,358)
Occupancy expenses (210,406) (432,280)
Share-based payment expense (81,000) (42,341)
Business development expenses (314,855) (195,882)
Arbitration related expenses (723,787) (594,802)
Loss before income tax (2,092,947) (1,997,911)
Income tax expense - -
Net loss for the period (2,092,947) (1,997,911)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (46,593) (7,127)
Total other comprehensive loss for the period (46,593) (7,127)
Total comprehensive loss for the period (2,139,540) (2,005,038)
Net loss attributable to:
Owners of the parent (2,087,681) (1,997,911)
Non-controlling interests (5,266) -
(2,092,947) (1,997,911)
Total comprehensive loss for the year, net of tax attributable to:
Owners of the parent (2,134,274) (2,005,038)
Non-controlling interests (5,266) -
(2,139,540) (2,005,038)
Basic and diluted loss per share (cents per share) (0.75) (0.73)
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 31 DECEMBER 2024
Note 31 December 2024 30 June 2024
$
$
ASSETS
Current Assets
Cash and cash equivalents 4,831,121 7,170,793
Trade and other receivables 5(a) 693,193 186,563
Total Current Assets 5,524,314 7,357,356
Non-Current Assets
Exploration and evaluation assets 6 10,268,308 9,372,906
Property, plant and equipment 7 151,538 282,461
Other 5(b) - 193,532
Total Non-Current Assets 10,419,846 9,848,899
TOTAL ASSETS 15,944,160 17,206,255
LIABILITIES
Current Liabilities
Trade and other payables 1,012,805 719,393
Other financial liabilities 8(a) 162,323 299,385
Provisions 9(a) 771,302 760,341
Total Current Liabilities 1,946,430 1,779,119
Non-Current Liabilities
Other financial liabilities 8(b) 3,409 3,195
Provisions 9(b) 269,799 274,231
Total Non-Current Liabilities 273,208 277,426
TOTAL LIABILITIES 2,219,638 2,056,545
NET ASSETS 13,724,522 15,149,710
EQUITY
Contributed equity 10 90,632,535 89,918,183
Reserves 11 10,911,456 10,958,049
Accumulated losses (87,816,065) (85,728,384)
Equity Attributable to Members of GreenX Metals Limited 13,727,926 15,147,848
Non-controlling interests (3,404) 1,862
TOTAL EQUITY 13,724,522 15,149,710
The above Consolidated Statement of Financial Position should
be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
Equity Attributable to Members of GreenX Metals Limited
Contributed Equity Share-based Payments Reserve Foreign Currency Translation Reserve Other Equity Accumulated Losses Total Non-controlling interest Total
Equity
$ $ $ $ $ $ $ $
Balance at 1 July 2024 89,918,183 4,560,793 185,998 6,211,258 (85,728,384) 15,147,848 1,862 15,149,710
Net loss for the period - - - - (2,087,681) (2,087,681) (5,266) (2,092,947)
Other comprehensive income for the half-year
Exchange differences on translation of foreign operations - - (46,593) - - (46,593) - (46,593)
Total comprehensive loss for the period - - (46,593) - (2,087,681) (2,134,274) (5,266) (2,139,540)
Issue of shares 786,000 - - - - 786,000 - 786,000
Share issue costs (71,648) - - - - (71,648) - (71,648)
Balance at 31 December 2024 90,632,535 4,560,793 139,405 6,211,258 (87,816,065) 13,727,926 (3,404) 13,724,522
Balance at 1 July 2023 85,917,513 4,583,192 189,517 6,207,493 (81,176,205) 15,721,510 - 15,721,510
Net loss for the period - - - - (1,997,911) (1,997,911) - (1,997,911)
Other comprehensive income for the half-year
Exchange differences on translation of foreign operations - - (7,127) - - (7,127) - (7,127)
Total comprehensive loss for the period - - (7,127) - (1,997,911) (2,005,038) - (2,005,038)
Issue of shares 4,163,600 - - - - 4,163,600 - 4,163,600
Share issue costs (176,509) - - - - (176,509) - (176,509)
Transfer from share-based payment reserve 64,740 (64,740) - - - - - -
Recognition of share-based payments - 42,341 - - - 42,341 - 42,341
Balance at 31 December 2023 89,969,344 4,560,793 182,390 6,207,493 (83,174,116) 17,745,904 - 17,745,904
The above Consolidated Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
Half-Year Ended Half-Year Ended
31 December 2024
31 December 2023
$
$
Cash flows from operating activities
Payments to suppliers and employees (1,614,265) (1,892,029)
Proceeds from property lease and gas sales - 2,675
Interest revenue from third parties 142,387 254,435
Payments for exploration and expenditure (404,829) (247,161)
Net cash outflow from operating activities (1,876,707) (1,882,080)
Cash flows from investing activities
Payments for property, plant and equipment (3,087) (2,244)
Payments for exploration and expenditure (190,403) (1,322,446)
Net cash outflow from investing activities (193,490) (1,324,690)
Cash flows from financing activities
Proceeds from issue of shares - 4,163,600
Payments for share issue costs (110,532) (153,528)
Payments for lease liabilities (158,943) (159,710)
Net cash (outflow) / inflow from financing activities (269,475) 3,850,362
Net (decrease)/increase in cash and cash equivalents (2,339,672) 643,592
Cash and cash equivalents at the beginning of the period 7,170,793 8,674,728
Cash and cash equivalents at the end of the period 4,831,121 9,318,320
The above Consolidated Statement of Cash Flows
should be read in conjunction with the accompanying notes.
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(a) Statement of Compliance
The interim consolidated financial statements of the Group for the half-year
ended 31 December 2024 were authorised for issue in accordance with the
resolution of the Directors.
This general purpose financial report for the interim half-year reporting
period ended 31 December 2024 has been prepared in accordance with Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report is
to be read in conjunction with the annual report of GreenX Metals Limited for
the year ended 30 June 2024 and any public announcements made by the Company
and its controlled entities during the interim reporting period in accordance
with the continuous disclosure requirements of the Corporations Act 2001.
2. BASIS OF PREPARATION AND CHANGES TO THE GROUP'S ACCOUNTING POLICIES
(a) Basis of Preparation of Half-Year Financial Report
The consolidated financial statements have been prepared on the basis of
historical cost. Cost is based on the fair values of the consideration given
in exchange for assets. All amounts are presented in Australian dollars. The
financial statements have been prepared on the going concern basis, which
contemplates the continuity of normal business activity and the realisation of
assets and the settlement of liabilities in the normal course of business.
(b) New Standards, interpretations and amendments thereof, adopted by the Group
The accounting policies and methods of computation adopted in the preparation
of the consolidated half-year financial report are consistent with those
adopted and disclosed in the company's annual financial report for the year
ended 30 June 2024 and the comparative interim period, other than as detailed
below.
In the current period, the Group has adopted all of the new and revised
Standards and Interpretations issued by the Australian Accounting Standards
Board (the AASB) that are relevant to its operations and effective for annual
reporting periods beginning on or after 1 July 2024.
New and revised Standards and amendments thereof and Interpretations effective
for the current half-year that are relevant to the Group include:
AASB 2020-1 Amendments to Australian Accounting Standards - Classification of
Liabilities as Current or Non-Current The Group has not early adopted any
other standard, interpretation or amendment that has been issued but is not
yet effective.
(c) Issued standards and interpretations not early adopted
Australian Accounting Standards and Interpretations that have recently been
issued or amended but are not yet effective have not been adopted by the
Company for the reporting period ended 31 December 2024. Those which may be
relevant to the Company are set out in the table below, but these are not
expected to have any significant impact on the Company's financial statements:
Standard/Interpretation Application Date of Standard Application Date for Company
AASB 2023-5 Amendments to Australian Accounting Standards - Lack of 1 January 2025 1 July 2025
Exchangeability
AASB 2024-2 Amendments to AASs - Classification and Measurement of Financial 1 January 2026 1 July 2026
Instruments
AASB 2024-3 Amendments to AASs - Annual Improvements Volume II. Amendments to 1 January 2026 1 July 2026
AASB 1, AASB 7, AASB 9, AASB 10 and AASB 107
AASB 18 Presentation and Disclosure in Financial Statements 1 January 2027 1 July 2027
3. SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis of internal
reports about components of the Consolidated Entity that are regularly
reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The Consolidated Entity operates in one segment, being mineral exploration.
This is the basis on which internal reports are provided to the Chief
Executive Officer for assessing performance and determining the allocation of
resources within the Consolidated Entity.
Half-Year ended 31 December 2024 Half-Year ended
$
31 December 2023
$
4. REVENUE AND OTHER INCOME
(a) Other income
Arbitration finance facility income 251,593 404,858
Other 8,511 -
260,104 404,858
31 December 2024 30 June 2024
$
$
5. TRADE AND OTHER RECEIVABLES
(a) Current
Trade receivables 285,481 13,652
Interest receivable 11,792 12,450
Deposits/prepayments 208,808 24,442
GST and other receivables 187,112 136,019
693,193 186,563
(b) Non-Current
Deposits/prepayments - 193,532
Arctic Rift Copper Project Eleonore North Project Tannenberg Project Total
$
$
$
$
6. EXPLORATION AND EVALUATION ASSETS
Carrying amount at 1 July 2024 7,770,000 1,602,906 - 9,372,906
ELN acquisition consideration: Issue of 382,636 Ordinary Shares to GEX (Note - 300,000 - 300,000
10)(2)
Tannenberg Minimum Commitment expenditure(3) - - 190,402 190,402
Tannenberg acquisition consideration: Issue of 500,000 Ordinary Shares (Note - - 405,000 405,000
10)
Carrying amount at 31 December 2024(1) 7,770,000 1,902,906 595,402 10,268,308
Note:
(1) The ultimate recoupment of costs carried
forward for exploration and evaluation is dependent on the successful
development and commercial exploitation or sale of the respective areas of
interest.
(2 ) In July
2024 GreenX entered into a revised agreement with Greenfields to acquire 100%
of the Eleonore North project. The transfer of the licence into the Group's
name was completed on 18 October 2024. Other key terms of the transaction are
included in the 2024 annual report.
(3 ) In
August 2024, GreenX entered into an earn-in agreement (Tannenberg Agreement)
through which GreenX can earn a 90% interest in Tannenberg. GreenX will fund a
work program up to €500,000 (Minimum Commitment). Once this Minimum
Commitment has been discharged, GreenX can elect to acquire 90% of Tannenberg
on or before 31 December 2025.
Plant and Right-of-use assets Total
equipment
$ $ $
7. PROPERTY, PLANT AND EQUIPMENT
Carrying amount at 1 July 2024 8,349 274,112 282,461
Additions 3,087 - 3,087
Depreciation and amortisation (2,820) (131,190) (134,010)
Carrying amount at 31 December 2024 8,616 142,922 151,538
- at cost 811,533 1,487,519 2,299,052
- accumulated depreciation and amortisation (802,917) (1,344,597) (2,147,514)
31 December 2024 30 June 2024
$
$
8. OTHER FINANCIAL LIABILITIES
(a) Current:
Lease liability(1) 162,323 299,385
(b) Non-Current:
Other 3,409 3,195
Note:
(1 ) The
Company has a lease agreement for the rental of a property. Refer to Note 7
for the carrying amount of the right of use asset relating to the lease. The
following are amounts recognised in the Statement of Profit and Loss: (i)
amortisation expense of right of use asset $131,190 (31 December 2023:
$131,190); (ii) interest expense on lease liabilities of $9,125 (31 December
2023: $18,594); and (iii) rent expense of $32,713 (31 December 2023:
$116,504).
31 December 2024 30 June 2024
$
$
9. PROVISIONS
(a) Current Provisions:
Provisions for the protection against mining damage at Debiensko(1) 736,737 724,174
Provision for closure of gas project(2) 28,315 26,982
Annual leave provision 6,250 9,185
771,302 760,341
(b) Non-Current Provisions:
Provisions for the protection against mining damage at Debiensko(1) 269,799 274,231
269,799 274,231
Note:
(1 ) As
Debiensko was previously an operating mine, the Group has provided for the pay
out of mining land damages to surrounding land owners who have made a
legitimate legal claim under Polish law.
(2) In the prior period, the Company
completed the sale of the Kaczyce 1 licence infrastructure to a third party
following the expiry of the licence.
Note 31 December 2024 30 June 2024
$
$
10. CONTRIBUTED EQUITY
(a) Issued and Unissued Capital
279,883,668 (30 June 2024: 278,901,032) fully paid ordinary shares 10(b) 90,632,535 89,918,183
Total Contributed Equity 90,632,535 89,918,183
(b) Movements in fully paid ordinary shares during the past six months
Date Details Number of Ordinary Shares $
1 Jul 24 Opening balance 278,901,032 89,918,183
2 Aug 24 Issue of Tannenberg consideration (Note 6) 500,000 405,000
2 Aug 24 Issue of shares to a consultant 100,000 81,000
18 Oct 24 Issue of ELN consideration (Note 6) 382,636 300,000
Jul 24 to Dec 24 Share issue costs - (71,648)
31 Dec 24 Closing balance 279,883,668 90,632,535
Note 31 December 2024 30 June 2024
$
$
11. RESERVES
Share-based payments reserve 11(a) 4,560,793 4,560,793
Foreign currency translation reserve 139,405 185,998
Other equity reserve 6,211,258 6,211,258
10,911,456 10,958,049
(a) Movements in share-based payments reserve during the past six months
There were no movements in the share-based payments reserve in the past six
months.
12. CONTINGENT ASSETS AND LIABILITIES
Arbitration Award
In October 2024, the Tribunal unanimously held that Poland had breached its
obligations under the Treaties in relation to the Jan Karski project,
entitling GreenX to compensation. The Company has been awarded a total of up
to £252m (A$495m / PLN1.3bn) in compensation by the Tribunal, plus interest
of approximately six per cent per annum based on today's rates (SONIA plus one
per cent) until full and final satisfaction of the Award by Poland.
All of GreenX's costs associated with the Claim were funded on a limited basis
from LCM. To date, GreenX has drawn down US$11.3 million from LCM. Once the
Award compensation is received from Poland, LCM will be entitled to be paid
back the US$11.3 million, a multiple of five times of the US$11.3 million and,
from 1 January 2025, interest on the US$11.3 million at a rate of 30% per
annum, compounding monthly (which equates to interest of approximately US$3.4
million (£2.7 million / A$5.5 million / PLN 13.5 million) per annum). Net of
the payments to LCM, GreenX will pay six per cent of the balance of the Award
compensation to key management directly involved in the case (as previously
approved by shareholders on 20 January 2021) and three per cent to key legal
advisers who assisted with the case on a reduced and fixed fee.
In November 2024, Poland lodged a request to set-aside the BIT Award in the
courts of England and Wales and in January 2025 Poland has lodged a request to
set-aside the ECT award in the courts of Singapore. The Company is currently
strongly defending the set-aside motions.
Whilst the Company is extremely confident in the strength of the Award, as
reflected in the unanimous Tribunal decision, the Company has not recognised
an asset or any corresponding liabilities in relation to the Award at 31
December 2024 while the set-aside motions are ongoing and the outcome is not
yet known. Accordingly, the final outcome of Award is not virtually certain
which does not meet the recognition requirements for AASB 137, Provisions,
Contingent Liabilities and Contingent Assets. The Award has therefore been
classified as a contingent asset.
12. CONTINGENT ASSETS AND LIABILITIES (Continued)
Tannenberg
On 2 August 2024, GreenX entered into the Tannenberg Agreement through which
GreenX can earn a 90% interest in the project. Under the terms of the
Tannenberg Agreement, GreenX will fund the Minimum Commitment which will be
sufficient to satisfy requirements for the grant of an extension of the
exploration license. Once the Minimum Commitment has been discharged, GreenX
can elect to acquire 90% of Tannenberg on or before 31 December 2025 in return
for GreenX paying A$3,000,000 to the vendor in GreenX ordinary shares (based
on the higher of the 10-day VWAP or A$0.30 per Share). Further, if a scoping
study is published by GreenX on the ASX regarding the Tannenberg license area
(or area of influence) on or before 1 August 2029, GreenX will issue the
vendor 5 million Shares on the completion of the first such scoping study.
As there is a possible obligation that will only be confirmed by uncertain
future events the deferred share payment has been classified as a contingent
liability.
ELN
In July 2024, following renegotiation with GEX, GreenX entered into a revised
agreement to acquire 100% of ELN. Under the terms of the revised
agreement, if GreenX elects to retain ELN after 31 December 2025 subsequent
to having completed further exploration work, the Company will make a deferred
payment of A$1,000,000 to GEX in cash or GreenX ordinary shares (with a floor
price of A$0.30), at the Company's election. As there is a possible obligation
that will only be confirmed by uncertain future events, the deferred payment
has been classified as a contingent liability.
13. FINANCIAL INSTRUMENTS
The Group's financial assets and liabilities, which comprise of cash and cash
equivalents, trade and other receivables, trade and other payables and other
financial liabilities, may be impacted by foreign exchange movements. At 31
December 2024 and 30 June 2024, the carrying value of the Group's financial
assets and liabilities approximate their fair value.
14. DIVIDENDS PAID OR PROVIDED FOR
No dividend has been paid or provided for during the half-year (31 December
2023: nil).
15. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
(i) On 6 January 2025 GreenX was selected as one of eight
exploration companies to participate in BHP's 2025 Xplor program and will
receive a one-off, non-dilutive grant of up to US$500,000 (US$250,000 received
to date).
(ii) On 22 January 2025 GreenX advises that further to Poland's
set-aside motion in relation to the BIT Award, it has now lodged a request to
set-aside the ECT Award with the courts of Singapore.
Other than as disclosed above, there were no significant events occurring
after balance date requiring disclosure.
AUDITOR'S INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR'S REVIEW REPORT
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. END IR SFSSFEEISEFDRecent news on GreenX Metals
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AnnouncementREG - GreenX Metals Ltd - Quarterly Activities Report December 2024
AnnouncementREG - GreenX Metals Ltd - Update on Arbitration Award against Poland
Announcement