REG - Mila Resources Plc - Final Results
22/10/2025 15:00
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RNS Number : 4369E Mila Resources PLC 22 October 2025
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources
22 October 2025
Mila Resources Plc ('Mila' or the 'Company')
Final Results
Audited Accounts for the Year Ended 30 June 2025
Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, is pleased to announce its final results for the year ended 30
June 2025.
Highlights
· Advanced the post-discovery business model through the acquisition
and rapid development of the Yarrol Gold Project in Queensland, Australia.
· Outstanding first-phase drilling results achieved at Yarrol,
including 11m @ 2.91g/t gold from near surface and 17m @ 5.46g/t gold from
42m.
· Decision made to exercise the EMX option before 31 October 2025,
securing 100% ownership of the Yarrol and surrounding Queensland licences.
· Second-phase drilling underway at Yarrol, will provide the foundation
for a maiden mineral resource estimate in the next financial year.
· Appointed Alastair Goodship as Chief Operating Officer and building a
dedicated geological team in Queensland to accelerate exploration and
strengthen technical capability.
· Continued to progress the Kathleen Valley Project in Western
Australia, with strong inbound interest received in both the gold and lithium
potential following the termination of the Liontown Resources option.
· Raised gross proceeds of £776,000 (before costs) in July 2025 to
advance drilling at Yarrol, maintain Kathleen Valley licences, and provide
working capital.
· Cash balance of £350,301 and net assets of £6.41 million as at 30
June 2025 (2024: £6.95 million); loss for the year of £800,435 (2024:
£686,277).
To view the audited report and accounts document, click here:
http://www.rns-pdf.londonstockexchange.com/rns/4369E_1-2025-10-22.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4369E_1-2025-10-22.pdf)
Statement from the Board
Dear Shareholder,
I am pleased to report notable progress during the financial year, and the
Company is arguably in its strongest position since its inception.
In October 2024, we entered an option agreement with EMX Royalty Corp ("EMX"),
to acquire certain gold and copper licences in Queensland that was structured
to invest capital "in the ground" with nominal consideration paid for the
option ("EMX Option"). Following this transaction, we commenced first phase
drilling in April 2025 at the Yarrol gold project ("Yarrol") and the results
proved to be immensely successful, surpassing our expectations with highlights
including results of 11m @ 2.91g/t from near surface and 17m @ 5.46g/t from
42m. In light of these highly encouraging results at Yarrol, the Company has
notified EMX of its intention to exercise the EMX Option before 31 October
2025 to acquire the licences in Queensland. The Company will be issuing
£110,000 of new ordinary shares to EMX, valued by reference to the
volume-weighted average price of the shares during the thirty consecutive
trading days prior to the date of issue.
As a result of the first phase drilling results at Yarrol, the Company raised
further capital to fast-track exploration at Yarrol and begin to explore the
wider package of licences in the vicinity. In June 2025, we completed a
capital raise of £776,000 (gross) that was subsequently admitted to trading
on the London Stock Exchange in July 2025, following the approval of
shareholders at a general meeting. We received substantial interest in the
capital raise from targeted investors, and our second phase of drilling and
exploration at Yarrol is now underway with results anticipated during Q4 2025.
Also, we have taken the decision to move away from an "external consultant"
led exploration model and have invested in our own "in-house" exploration team
with the recent appointment of Alastair Goodship as Chief Operating Officer
and the hiring of a team of geologists in Queensland which will allow us to
move faster and efficiently whilst developing more intellectual property
in-house.
Turning to Kathleen Valley ("KV"), we continue to see significant potential in
the licences for both gold and lithium albeit we have prioritised Yarrol in
2025. KV is located in a highly strategic location with an abundance of gold
and lithium infrastructure nearby and we are now evaluating several options on
developing KV further. Regrettably, Liontown Resources elected to terminate
their option agreement with regard to the lithium exploration in January 2025
against the backdrop of a softer lithium market. We have since received
several inbound enquiries for both the gold and lithium potential of these
licences, which we are now reviewing. We are confident that KV will unlock
value and will update the market once the preferred route is determined.
We continue to focus on gold and copper due to the favourable climate for such
projects and the level of investor interest for such commodities. Post
year-end, gold has traded over $4,300, an all-time high, whilst copper is now
nearing $5/lb, approaching its five-year high. We have seen a notable return
of interest in the capital markets for gold and copper explorers in recent
months and notably during our recent capital raise. Also, given the recent
performance of the underlying commodity prices we are now looking to develop
our projects as rapidly as possible. Our immediate focus is to continue
building our understanding of the geological model at Yarrol and to begin to
build our mineral resource inventory. We are acutely aware that we must
continue to deliver further strong exploration results and we now have the
scale of opportunity at Yarrol across a 20 km strike to build a robust gold
project.
I would like to thank you, our shareholders, for your ongoing support notably
towards our recent capital raise. Also, I must thank our team that are working
tirelessly to build the Company.
Corporate
We have ended the current financial year in a strong position. As at 30 June
2025, cash and cash equivalents amounted to £350,301 (2024: £1,417,710). Net
asset position was £6,411,881 (2024: £6,951,807). The Company raised a
further £776,000 (gross) received from the placing in July 2025.
Results
As an exploration and development company which has no revenue, Mila is
reporting a loss for the year ended 30 June 2025 of £800,435 (30 June 2024:
loss of £686,277). £539,926 was attributable to general administrative
expenses and the balance was non-cash loss attributable to the issue of share
options. The Company has been actively reducing its overhead costs notably
relating to directors fees and other administrative areas.
Fund Raises
In June 2025, the Company announced the placing of 108,013,391 new ordinary
shares at a price of 0.7 pence per ordinary share raising £776,000 (before
costs). The placing was subject to the approval of a general meeting in July
2025 which was duly approved.
Outlook
The Company's immediate priority is to build on the excellent exploration
success achieved at the Yarrol gold project and across our Queensland
licences. Our second-phase drilling campaign at Yarrol is underway and is
expected to provide the foundation for a maiden mineral resource estimate in
the next financial year - a milestone that we believe will begin to underline
the value of the Company.
At the same time, we are progressing our evaluation of options at Kathleen
Valley. With strong inbound interest in both the gold and lithium potential,
we are confident of identifying the optimal path to unlock value for
shareholders and look forward to updating the market in the near term.
Overall, the Board remains highly encouraged by the Company's exploration
success and believes that the year ahead will provide multiple value catalysts
across the portfolio.
Mark Stephenson
Executive Chairman
22 October 2025
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
Year ended Year ended
30 June 2025 30 June 2024
£
£
Notes
Administrative expenses (539,926) (686,298)
Share warrant expense (260,509) -
Operating Loss 3 (800,435) (686,298)
Interest receivable - 21
Loss before taxation (800,435) (686,277)
Income tax expense 6 - -
Loss and total comprehensive income for the year attributable to the owners of (800,435) (686,277)
the company
Earnings per share (basic and diluted) attributable to the equity holders 7 (0.15) (0.15)
(pence)
The above results relate entirely to continuing activities.
The accompanying notes form part of these financial statements.
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2025
Year ended Year ended
30 June 2025 30 June 2024
£
£
Notes
NON-CURRENT ASSETS
Exploration and evaluation assets 8 6,257,968 5,761,853
6,257,968 5,761,853
CURRENT ASSETS
Trade and other receivables 9 35,751 31,521
Cash and cash equivalents 10 350,301 1,417,710
386,052 1,449,231
TOTAL ASSETS 6,644,020 7,211,084
CURRENT LIABILITIES
Trade and other payables 11 168,384 259,277
168,384 259,277
NON-CURRENT LIABILITIES
Provisions 12 63,755 -
TOTAL LIABILITIES 232,139 259,277
NET ASSETS 6,411,881 6,951,807
EQUITY
Share capital 13 5,419,653 5,419,653
Share premium 13 4,494,522 4,494,522
Share based payment reserve 14 799,838 539,329
Retained loss (4,302,132) (3,501,697)
TOTAL EQUITY 6,411,881 6,951,807
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 22
October 2025 and were signed on its behalf by:
______________________________
Jonathan Evans
Non-Executive Director
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
12 months to 12 months to
30 June
30 June
2025 2024
£ £
Cash flows from operating activities
Loss for the year (800,435) (686,277)
Adjustments for:
Warrants / Options expense (non-cash) 260,509 -
Less: Interest Received - (21)
Foreign exchange Gains/(Losses) - 1,823
Operating cashflow before working capital movements (539,926) (684,475)
(Increase) / Decrease in trade and other receivables (4,230) 17,183
Decrease in trade and other payables (140,893) (108,155)
Net cash outflow from operating activities (685,049) (775,447)
Cash flow from investing activities
Purchase of options (47,221) -
Funds used for drilling and exploration (335,139) (16,558)
Interest Received - 21
Net cash outflow from investing activities (382,360) (16,537)
Cash flow from financing activities
Proceeds from share issues - 2,000,000
Proceeds from issue of Convertible Loans - 51,475
Issue costs paid in cash / netted against proceeds - (289,844)
Net cash inflow from financing activities 1,761,631
Net (Decrease) / Increase in cash and cash equivalents (1,067,409) 969,647
Cash and cash equivalents at beginning of the year 1,417,710 448,063
Cash and cash equivalents at end of the year 350,301 1,417,710
The accompanying notes form part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
Share Capital Share Premium Share Based Payment Reserve Retained Loss Total
£ £ £ £ £
Balance at 30 June 2023 3,368,178 4,784,603 539,093 (2,815,420) 5,876,454
Total comprehensive income for the year - - - (686,277) (686,277)
Transactions with Shareholders
Capital Raising - Issue of shares 2,000,000 - - - 2,000,000
Capital Raising - Issue costs - (289,845) - - (289,845)
Conversion of CLN 51,475 - - - 51,475
Share warrants expense - (236) 236 - -
Balance at 30 June 2024 5,419,653 4,494,522 539,329 (3,501,697) 6,951,807
Total comprehensive income for the year - - - (800,435) (800,435)
Share option expense - - 260,509 - 260,509
Balance at 30 June 2025 5,419,653 4,494,522 799,838 (4,302,132) 6,411,881
The accompanying notes form part of these financial statements.
NOTES TO THE FINANCIAL Statements
FOR THE YEAR ENDED 30 JUNE 2025
1 GENERAL INFORMATION
Mila Resources Plc (the "Company'') was listed on the London Stock Exchange in
2016 with a view to acquiring projects in the natural resources sector. In
November 2021, the Company acquired an interest in a gold exploration project
in Western Australia. In October 2024, the Company entered into an option to
acquire gold and copper projects from EMX in Queensland, Australia.
The Company is domiciled in the United Kingdom and incorporated and registered
in England and Wales, with registration number 09620350.
2 ACCOUNTING POLICIES
2.1 Basis of preparation
The financial statements have been prepared on a going concern basis using the
historical cost convention and in accordance with the UK-Adopted International
Accounting Standards, and in accordance with the provisions of the Companies
Act 2006.
The Company's financial statements for the year ended 30 June 2025 were
authorised for issue by the Board of Directors on 21 October 2025 and were
signed on the Board's behalf by Mr J Evans.
The Company's financial statements are presented in pounds Sterling and
presented to the nearest pound.
2.2 Business Combinations
Acquisitions of business are accounted for using the acquisition method. At
the acquisition date, the identifiable assets acquired, and the liabilities
assumed are recognised at their fair value.
Consideration is also measured at fair value at the acquisition date. This is
calculated as the sum of the fair values of assets transferred less the fair
value of the liabilities incurred by the Company.
Acquisition‑related costs are recognised in profit or loss as incurred.
2.3 Going concern
The Financial Statements have been prepared under the going concern
assumption, which presumes that the Company will be able to meet its
obligations as they fall due for at least the next twelve months from the date
of the signing of the Financial Statements.
The Company had a net cash outflow for the year of £1,067,409 (2024: inflow
of £969,647) and at 30 June 2025 had cash and cash equivalents balance of
£350,301 (20245: £1,417,710).
An operating loss of £800,435 has been made although the Company was in a net
current asset position at 30 June 2025.
The Company's current cash reserves are less than the forecasted expenditure
over the next 12 months and therefore further funding will need to be raised.
Due to the aforementioned £776,000 raise, the Directors are confident that
such further funding, if required, can be obtained and therefore the Directors
continue to adopt the going concern basis in preparing the financial
statements. However, the Directors acknowledge that the receipt of additional
funding has not yet been secured and therefore a material uncertainty exists
which may cause significant doubt about the availability to continue to trade
as a going concern.
The auditors have made reference to going concern by way of a material
uncertainly within the financial statements.
2.4 Standards, amendments and interpretations to existing standards
that are not yet effective and have not been early adopted by the Company
New standards, amendments to standards and interpretations:
No new standards, amendments or interpretations, effective for the first time
for the financial year beginning on or after 1 July 2024 have had a material
impact on the Company.
Standards issued but not yet effective:
At the date of authorisation of these financial statements, the following
standards and interpretations relevant to the Company and which have not been
applied in these financial statements, were in issue but were not yet
effective.
Standard Impact on initial application Effective date
IAS 21 The Effects of Changes in Foreign Exchange Rate (Lack of Exchangeability) 01 January 2025
IFRS 7 and IAS 7 Statement of Cash Flows (Supplier Finance Arrangements) Financial Instruments 01 January 2026
IAS 9 Derecognition criteria applicable to electronic payments and the 01 January 2026
classification of financial assets
IFRS 18 Presentation and Disclosure in Financial Statements. A new presentation 01 January 2027
standard that replaces IAS 1
The directors do not consider that these standards will impact the financial
statements of the Company.
2.5 Asset acquisition
Where an acquisition transaction constitutes the acquisition of an asset and
not a business, the cost of the asset acquired is measured as the fair value
of the consideration transferred to obtain control of the asset. Transaction
costs directly attributable to the acquisition are capitalised. No gain or
loss is recognised.
The Company recognises the fair value of contingent consideration in respect
of an asset acquisition where it is probable that a liability has been
incurred and the amount of that liability can be reasonably estimated. Such
contingent consideration is recognised at the point control of the underlying
asset is obtained and is included in the initial measurement of the cost of
the acquired asset.
For contingent cash consideration milestones, the Company estimates the
probability of milestone completion to determine the expected liability. This
estimate is reassessed at each reporting period, and any changes in the fair
value of the contingent cash consideration are capitalised as part of the
asset.
For contingent share consideration milestones, the Company estimates the
probability of milestone completion at the acquisition date. If the milestone
is not deemed probable or cannot be reliably measured at that time, no amount
is recognised. If the milestone becomes probable and measurable in a
subsequent reporting period, the contingent consideration is recognised at
that time, with the corresponding amount added to the cost of the acquired
asset. The assessment of whether recognition criteria are met is reviewed at
each reporting date based on new information.
Deferred tax is not recognised upon an asset acquisition.
2.6 Foreign currency translation
The financial information is presented in Sterling which is the Company's
functional and presentational currency.
Transactions in currencies other than the functional currency are recognised
at the rates of exchange on the dates of the transactions. At each balance
sheet date, monetary assets and liabilities are retranslated at the rates
prevailing at the balance sheet date with differences recognised in the
Statement of comprehensive income in the period in which they arise.
2.7 Financial instruments
Initial recognition
A financial asset or financial liability is recognised in the statement of
financial position of the Company when it arises or when the Company becomes
part of the contractual terms of the financial instrument.
Classification
Financial assets at amortised cost
The Company measures financial assets at amortised cost if both of the
following conditions are met:
(1) the asset is held within a business model whose objective is to collect
contractual cash flows; and
(2) the contractual terms of the financial asset generating cash flows at
specified dates only pertain to capital and interest payments on the balance
of the initial capital.
Financial assets which are measured at amortised cost, are measured using the
Effective Interest Rate Method (EIR) and are subject to impairment. Gains and
losses are recognised in profit or loss when the asset is de-recognised,
modified or impaired.
Financial liabilities at amortised cost
Financial liabilities measured at amortised cost using the effective interest
rate method include current borrowings and trade and other payables that are
short term in nature. Financial liabilities are derecognised if the Company's
obligations specified in the contract expire or are discharged or cancelled.
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the effective
interest rate ("EIR"). The EIR amortisation is included as finance costs in
profit or loss. Trade payables other payables are non-interest bearing and are
stated at amortised cost using the effective interest method.
Derecognition
A financial asset is de-recognised when:
(1) the rights to receive cash flows from the asset have
expired, or
(2) the Company has transferred its rights to receive cash
flows from the asset or has undertaken the commitment to fully pay the cash
flows received without significant delay to a third party under an arrangement
and has either (a) transferred substantially all the risks and the assets of
the asset or (b has neither transferred nor held substantially all the risks
and estimates of the asset but has transferred the control of the asset.
Impairment
The Company recognises a provision for impairment for expected credit losses
regarding all financial assets. Expected credit losses are based on the
balance between all the payable contractual cash flows and all discounted cash
flows that the Company expects to receive. Regarding trade receivables, the
Company applies the IFRS 9 simplified approach in order to calculate expected
credit losses. Therefore, at every reporting date, provision for losses
regarding a financial instrument is measured at an amount equal to the
expected credit losses over its lifetime without monitoring changes in credit
risk. To measure expected credit losses, trade receivables and contract assets
have been grouped based on shared risk characteristics.
Trade and other receivables
Trade and other receivables are initially recognised at fair value when
related amounts are invoiced then carried at this amount less any allowances
for doubtful debts or provision made for impairment of these receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and are subject to
an insignificant risk of changes in value.
Trade payables
These financial liabilities are all non-interest bearing and are initially
recognised at the fair value of the consideration payable.
2.8 Equity
Share capital is determined using the nominal value of shares that have been
issued.
The Share premium account includes any premiums received on the initial
issuing of the share capital. Any transaction costs associated with the
issuing of shares are deducted from the Share premium account, net of any
related income tax benefits.
Equity-settled share-based payments are credited to a share-based payment
reserve as a component of equity until related options or warrants are
exercised or lapse.
Retained losses includes all current and prior period results as disclosed in
the statement of comprehensive income.
2.9 Share-based payments
The Company records charges for share-based payments where options, warrants
or other similar instruments are issued in lieu of services provided to the
Company.
For warrant-based or option-based share-based payments, to determine the value
of the warrants or options, management estimate certain factors used in the
Black Scholes Pricing Model, including volatility, vesting date exercise date
of the warrants or option and the number likely to vest. At each reporting
date during the vesting period management estimate the number of shares that
will vest after considering the vesting criteria. If these estimates vary from
actual occurrence, this will impact on the value of the equity carried in
reserves.
2.10 Taxation
Tax currently payable is based on taxable profit for the period. Taxable
profit differs from profit as reported in the income statement because it
excludes items of income and expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Company's liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised on differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit, and is accounted for using
the balance sheet 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. Such
assets and liabilities are not recognised if the temporary difference arises
from initial recognition of goodwill or from the initial recognition (other
than in a business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Company is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled, or the asset realised. Deferred tax is
charged or credited to profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt
with in equity.
Deferred tax assets and liabilities are offset when 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 Company intends to settle its current tax assets and
liabilities on a net basis.
2.11 Intangible assets - Exploration and evaluation expenditures
(E&E)
The Company applies the successful efforts method of accounting, having regard
to the requirements of IFRS 6 'Exploration for and Evaluation of Mineral
Resources'. Costs incurred prior to obtaining the legal rights to explore an
area are expensed immediately to the Statement of Comprehensive Income.
Expenditure incurred on the acquisition of a licence interest is initially
capitalised within intangible assets on a licence by licence basis. Costs are
held, unamortised, until such time as the exploration phase of the field area
is complete or commercial reserves have been discovered. The cost of the
licence is subsequently transferred into property, plant and equipment and
depreciated over its estimated useful economic life.
Exploration expenditure incurred in the process of determining exploration
targets is capitalised initially within intangible assets as drilling costs.
Drilling costs are initially capitalised on a licence by licence basis until
the success or otherwise has been established. Drilling costs are written off
unless the results indicate that reserves exist and there is a reasonable
prospect that these reserves are commercially viable. Drilling costs are
subsequently transferred into 'Drilling expenditure' within property, plant
and equipment and depreciated over their estimated useful economic life.
2.12 Impairment of Exploration and Evaluation assets
The Company assesses at each reporting date whether there is an indication
that an asset may be impaired. This includes consideration of the IFRS 6
impairment indicators for any intangible exploration and evaluation
expenditure capitalised as intangible assets. Examples of indicators of
impairment include whether:
(a) the period for which the entity has the right to explore in the specific
area has expired during the period or will expire in the near future and is
not expected to be renewed.
(b) substantive expenditure on further exploration for and evaluation of
mineral resources in the specific area is neither budgeted nor planned.
(c) exploration for and evaluation of mineral resources in the specific
area have not led to the discovery of commercially viable quantities of
mineral resources and the entity has decided to discontinue such activities in
the specific area.
(d) sufficient data exist to indicate that, although a development in the
specific area is likely to proceed, the carrying amount of the exploration and
evaluation asset is unlikely to be recovered in full from successful
development or by sale.
If any such indication exists, or when annual impairment testing for an asset
is required, the Company makes an estimate of the asset's recoverable amount,
which is the higher of its fair value less costs to sell and its value in use.
Any impairment identified is recorded in the statement of comprehensive
income.
2.13 Critical accounting judgements and key sources of uncertainty
In the process of applying the entity's accounting policies, management makes
estimates and assumptions that have an effect on the amounts recognised in the
financial information. Although these estimates are based on management's best
knowledge of current events and actions, actual results may ultimately differ
from those estimates.
The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements are as
follows:
Impairment of intangible assets
For details on the accounting policy for the impairment of exploration and
evaluation assets, see Note 2.12 "Impairment of Exploration and Evaluation
Assets" in the "Notes to the Financial Statements" on page 39.
The first stage of the impairment process is the identification of an
indication of impairment. Such indications can include significant geological
or geophysical information which may negatively impact the existing assessment
of a project's potential for recoverability, significant reductions in
estimates of resources, significant falls in commodity prices, a significant
revision of the Company Strategy, operational issues which may require
significant capital expenditure, political or regulatory impacts and others.
This list is not exhaustive and management judgement is required to decide if
an indicator of impairment exists.
The Company regularly assesses the intangible assets for indicators of
impairment. For more information on impairment indicators see Note 2.12
"Impairment of Exploration and Evaluation Assets" in the "Notes to the
Financial Statements" on page 39. Also see IFRS 6 'Exploration for and
Evaluation of Mineral Resources'.
When an impairment indicator exists an impairment test is performed; the
recoverable amount of the asset, being the higher of the asset's fair value
less costs to sell and value in use, is compared to the asset's carrying
value. Any excess of the asset's carrying value over its recoverable amount is
expensed to the income statement.
Share based payments
The Company records charges for share-based payments.
For option and warrant-based share-based payments, to determine the value of
the options and warrants management estimates certain factors used in the
option and warrant pricing model, including volatility, vesting date, exercise
date of options and warrant and the number of options/warrants likely to vest.
At each reporting date during the vesting period, management estimates the
number of shares that will vest after considering the vesting criteria. If
these estimates vary from actual occurrence, this will impact on the value of
the equity carried in the reserves.
2.14 Earnings per share
Basic earnings per share is calculated as profit or loss attributable to
equity holders of the Company for the period, adjusted to exclude any costs of
servicing equity (other than dividends), divided by the weighted average
number of ordinary shares, adjusted for any bonus element. The diluted profit
per share is the same as the basic profit per share for 2025 because; all
warrants and options in issue were out of the money at the year-end; the
Company reported a loss, hence including the additional dilution would have
resulted in a reduction of the loss per share.
2.15 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 as a whole.
All operations and information are reviewed together therefore at present
there is only two reportable operating segment.
The Company's strategy is to act as a post discovery accelerator, where the
Company identifies target(s) that have already had an early-stage geological
discovery. To date the Company has identified and invested in two projects,
namely the Kathleen Valley Project and EMX Option in Queensland. Hence during
the year and as at the year-end, there were only two reportable operating
segments.
In compliance with IFRS 8 'Operating Segments', the following table reconciles
the assets of each reportable segment with the total figures presented in
these Financial Statements. There is no comparative year as previously there
has only been one reportable segment. No analysis of the liabilities and
expenses of each segment is provided to the chief operating decision maker
therefore no measure of segmental liabilities or expenses is disclosed within
this note.
Kathleen Valley EMX Total
£
£
£
Exploration and evaluation assets 5,800,116 457,852 6,257,968
Net assets by reportable segment 5,800,116 457,852 6,257,968
A detailed breakdown of this is also found in Note 8.
3. OPERATING LOSS
This is stated after charging:
2025 2024
£
£
Auditor's remuneration:-
Audit of the Company 49,000 42,500
Directors' remuneration 205,515 348,333
Stock exchange and regulatory expenses 19,302 10,536
Other expenses 526,618 248,951
Operating expenses 800,435 686,298
4. AUDITOR'S REMUNERATION
2025 2024
£
£
Fees payable to the Company's current auditor: 49,000 42,500
- audit of the Company's financial statements
49,000
42,500
5. DIRECTORS AND STAFF COSTS
During the year the only employees of the Company were the Directors and as
such key management personnel. Management remuneration, other benefits
supplied and social security costs to the Directors during the year was as
follows below. For Directors costs see the Directors remuneration report from
page 19.
2025 2024
£
£
Salaries 205,515 348,332
Social security costs 20,207 38,348
Share based payments 260,509 -
486,231 386,680
6. TAXATION
2025 2024
£
£
The charge/credit for the year is made up as follows:
Current tax - -
Deferred tax - -
Taxation charge / credit for the year - -
A reconciliation of the tax charge / credit appearing in the income statement
to the tax that would result from applying the standard rate of tax to the
results for the year is:
Loss per accounts (800,435) (686,277)
Tax credit at the standard rate of corporation tax in the UK of 19% (2024: (152,083) (130,393)
19%)
Impact of costs disallowed for tax purposes 200 579
Deferred tax in respect of temporary differences - -
Impact of unrelieved tax losses carried forward 151,883 129,814
- -
Estimated tax losses of £4,133,959 (2024: £3,334,575) are available for
relief against future profits and a deferred tax asset of £785,452 (2024:
£633,185) has not been provided for in the accounts due to the uncertainty of
future profits.
Factors affecting the future tax charge
The standard rate of corporation tax in the UK for Companies making less than
£50,000 annual profit is 19%. Accordingly, the Company's effective tax rate
for the period was 19% (2024: 19%).
Deferred taxation
No deferred tax asset has been recognised by the Company due to the
uncertainty of generating sufficient future profits and tax liability against
which to offset the tax losses. Note 6 above sets out the estimated tax losses
carried forward
7. EARNINGS PER SHARE
The calculation of the earnings per share is based on the loss for the
financial period after taxation of £800,435 (2024: £686,277) and on the
weighted average of 543,228,919 (2024: 467,643,821) ordinary shares in issue
during the period.
The diluted loss per share is the same as the basic loss per share because the
Company reported a loss, hence including the additional dilution would have
resulted in a reduction of the loss per share.
Earnings Weighted average number of shares Per-share amount
£ unit pence
30 June 2025: Loss per share attributed to ordinary shareholders (800,435) 541,965,183 (0.15)
30 June 2024: Loss per share attributed to ordinary shareholders (686,277) 467,643,821 (0.15)
8. EXPLORATION AND EVALUATION ASSETS
At 30 At 30
June 2025 June 2024
£ £
Opening balance 5,761,853 5,605,870
Cost of acquisition including transaction costs 160,976 -
Exploration costs capitalised in the year 335,139 155,983
Net book value 6,257,968 5,761,853
Exploration and evaluation assets are regularly reviewed for indicators of
impairment as outlined in IFRS 6. If an indicator of impairment is found an
impairment test is required, where the carrying value of the asset is compared
with its recoverable amount. The recoverable amount is the higher of the
asset's fair value less costs to sell and value in use.
The Directors are satisfied that no impairment indicators in respect of either
project have been identified and therefore a full impairment review was not
necessary and no impairments have been recognised in the year.
On 31 October 2024 an exploration option was entered into with an option to
purchase three highly prospective projects with proven gold mineralisation,
each with the potential to materially expand Mila's mineral resource
inventory. The costs to acquire the option and subsequent exploration costs
have been capitalised as whilst the option does not grant the Company
ownership of the licences in question, it does provide the Company with the
right to conduct exploration and evaluation activities and the Directors
assessed that it was probable that the option would be exercised.
The Company initially paid A$25,000 in cash and issued 16 million warrants
exercisable at 1p per Ordinary Share for the Option Agreement. The Company
will make a further payment of A$125,000 on the second anniversary of the
Option Agreement, payable in either cash or by the issue of new ordinary
shares. The Company also agreed in the EMX Option Agreement to pay additional
consideration for the grant of the option to EMX if, following the initiation
of drilling on-site, Mila's share price exceeded 1.0p for more than 12
continuous trading days.
As at the year-end the deferred consideration and contingent consideration,
£63,755 and £50,000, respectively, was outstanding.
9. TRADE AND OTHER RECEIVABLES
2025 2024
£
£
Prepayments and other receivables 35,751 31,521
35,751 31,521
The Directors consider that the carrying value amount of trade and other
receivables approximates to their fair value.
10. CASH AND CASH EQUIVALENTS
2025 2024
£
£
Cash at bank 350,301 1,417,710
350,301 1,417,710
Cash at bank comprises balances held by the Company in current bank accounts.
The carrying value of these approximates to their fair value.
11. TRADE AND OTHER PAYABLES
2025 2024
£
£
Trade payables 62,968 12,106
Accruals and other payables 55,416 247,171
Provision for liabilities; contingent liability on option 50,000 -
168,384 259,277
Note 8 above details the provision in more detail.
12. NON-CURRENT LIABILITY
2025 2024
£
£
Provision for liabilities; deferred consideration on option 63,755 -
63,755 -
Note 8 above details the provision in more detail.
13. SHARE CAPITAL / SHARE PREMIUM
Number of shares on issue Share capital £ Share premium £ Total £
Balance as at 1 July 2023 336,817,708 3,368,178 4,784,603 8,152,781
Capital Raising 200,000,000 2,000,000 - 2,000,000
Issue Costs - - (289,845) (289,845)
Conversion of CLN 5,147,475 51,475 - 51,475
Share warrant expense - - (236) (236)
Balance as at 30 June 2024 541,965,183 5,419,653 4,494,522 9,914,175
Balance as at 30 June 2025 541,965,183 5,419,653 4,494,522 9,914,175
The Directors held the following warrants at the beginning and end of the
year:
Director At 30 June 2024 Movement during the year At 30 June 2025 Exercise price Earliest date of exercise Last date of exercise
M. Stephenson 7,500,000 - 7,500,000 £0.024 22 Nov 2021 31 Dec 2026
L. Daniels 7,500,000 - 7,500,000 £0.024 22 Nov 2021 31 Dec 2026
N. Hutchison 5,000,000 - 5,000,000 £0.024 22 Nov 2021 31 Dec 2026
L. Mair 2,000,000 - 2,000,000 £0.024 22 Nov 2021 31 Dec 2026
22,000,000 - 22,000,000
The Directors held the following Options at the beginning and end of the year:
Director At 30 June 2024 Movement during the year At 30 June 2025 Average Exercise price Earliest date of exercise Last date of exercise
M. Stephenson 3,500,000 8,571,429 12,071,429 £0.0123 10 Dec 2021 24 Jun 2030
J. Evans - 8,571,429 8,571,429 £0.0123 25 Jun 2025 24 Jun 2030
L. Daniels 2,500,000 (2,500,000) - £0.024 10 Dec 2021 10 Dec 2026
6,000,000 14,642,858 20,642,858
A. Goodship, who was not a Director at the time of the award, nor was he at
the year-end, but is at the date these financial statements are signed, was
awarded 8,571,429 options on 24 June 2025 at an average exercise price of
£0.0123. These vested immediately and expire on 24 June 2030.
14. SHARE BASED PAYMENT RESERVE AND SHARE BASED PAYMENTS
SHARE BASED PAYMENT RESERVE
2025 2024
£
£
At 1 July 539,329 539,093
Warrants and options expense 260,509 236
At 30 June 799,838 539,329
Warrants and Options in Issue Number of Options in Issue Number of Warrants in Issue Weighted average exercise price Expiry date
At 30 June 2023 6,000,000 242,044,111 £0.0432
Investor Warrants - Delayed until Nov 2023 prospectus, relating to Oct/Nov - 30,266,650 £0.048 14 Nov 2025
2022 capital raise
Broker Warrants - Delayed until Nov 2023 prospectus, relating to Oct/Nov 2022 - 717,332 £0.03 14 Nov 2025
capital raise ((1))
Investor Warrants - relating to £2m capital raise in Nov 2023 - 200,000,000 £0.02 9 Nov 2025
Investor Warrants - relating to conversion of the Liontown CLN - 5,147,475 £0.02 29 Jan 2027
At 30 June 2024 6,000,000 478,175,568 £0.034
L. Daniels (2,500,000) - £0.024
Senior management team share options Jun25 32,857,144 - £0.011 24 June 2030
At 30 June 2025 36,357,144 478,175,568 £0.033
SHARE BASED PAYMENTS - OPTIONS
The total options issued in the year at each exercise price were 16,428,571 at
0.7p, 9,857,144 at 1p and 6,571,429 at 2p. These options were valued using the
black scholes model and the key inputs are as noted in the table below. As a
result of the options granted in the year vesting immediately, the share based
payment charge recognised in the year was £260,509.
Jun 2025 Jun 2025 Jun 2025
Options Exercise Price (£) 0.007 0.01 0.02
Share price at grant date (£) 0.00825 0.00825 0.00825
Expected Life of Options years 5 5 5
Volatility 184.5% 184.5% 184.5%
Dividend yield - - -
Risk free interest rate 3.945% 3.945% 3.945%
The market price of the shares at year end was 0.825 pence per share.
During the year, the minimum and maximum prices were 0.175 pence and 1.05
pence per share respectively.
15. CAPITAL COMMITMENTS
There were no capital commitments at 30 June 2025 and 30 June 2024.
16. CONTINGENT LIABILITIES
There were no contingent liabilities at 30 June 2025 and 30 June 2024.
17. COMMITMENTS UNDER LEASES
There were no commitments under operating leases at 30 June 2025 and 30 June
2024.
18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Company's financial instruments comprise primarily cash and various items
such as trade debtors and trade payables which arise directly from operations.
The main purpose of these financial instruments is to provide working capital
for the Company's operations. The Company does not utilise complex financial
instruments or hedging mechanisms.
Financial assets by category 2025 2024
£
£
Current Assets:
Cash and cash equivalents 350,301 1,417,710
Trade and other receivables 6,172 11,332
Categorised as financial assets at amortised cost 356,473 1,429,042
Financial liabilities by category 2025 2024
£
£
Current Liabilities:
Trade and other payables 113,384 259,277
Provision for liabilities; contingent liability on options 50,000 -
Non-Current Liabilities :
Provision for deferred consideration 63,755 -
Categorised as financial liabilities measured at amortised cost 227,139 259,277
Current liabilities amounts are short term and payable in 0 to 6 months.
Non-current liabilities are payable in 12 to 15 months.
Credit risk
The maximum exposure to credit risk at the reporting date by class of
financial asset was:
2025 2024
£
£
Trade and other receivables 6,172 11,332
Cash and cash equivalents 350,301 1,417,710
356,473 1,429,042
Capital management
The Company considers its capital to be equal to the sum of its total equity.
The Company monitors its capital using several key performance indicators
including cash flow projections, working capital ratios, the cost to achieve
development milestones and potential revenue from partnerships and ongoing
licensing activities.
The Company's objective when managing its capital is to ensure it obtains
sufficient funding for continuing as a going concern. The Company funds its
capital requirements through the issue of new shares to investors.
Interest rate risk
The maximum exposure to interest rate risk at the reporting date by class of
financial asset was:
2025 2024
£
£
Bank balances 350,301 1,417,710
The Company is not financially dependent on the income earned on these
resources and therefore the risk of interest rate fluctuations is not
significant to the business and the Directors have not performed a detailed
sensitivity analysis.
All deposits are placed with main clearing banks, with 'A' ratings, to
restrict both credit risk and liquidity risk. The deposits are placed for the
short term, between one and three months, to provide flexibility and access to
the funds.
Credit and liquidity risk
Credit risk is managed on a Company basis. Funds are deposited with financial
institutions with a credit rating equivalent to, or above, the main UK
clearing banks. The Company's liquid resources are invested having regard to
the timing of payment to be made in the ordinary course of the Company's
activities. All financial liabilities are payable in the short term (between 0
to 3 months) and the Company maintains adequate bank balances to meet those
liabilities. A liquidity analysis is not therefore considered material to
disclose.
Currency risk
The Company operates in a global market with income and costs possibly arising
in a number of currencies. The Company's strategic aim of acquiring asset(s)
or business(es) acting as a post discovery accelerator, is not limited to any
specific geo-political area or jurisdiction. Currently the majority of the
Company's overhead costs are incurred in £GBP. The Kathleen Valley Project is
located in Western Australia, and hence the majority of the exploration and
evaluation costs relating to this project are incurred in $AUD. The Company
has not hedged against any currency depreciation but continues to keep the
matter under review.
19. RELATED PARTY TRANSACTIONS
Key management personnel compensation
The Directors are considered to be key management personnel. Detailed
remuneration disclosures are provided in the remuneration report on pages 19 -
21 of the Annual Report.
Neil Hutchison is a Director of the Company and also the owner of Geolithic
Pty Ltd ("Geolithic"). Geolithic entered a contract agreement to Trans Pacific
Energy Group ("TPE") on 3rd September 2019 to supply geological consulting,
personnel hire and equipment hire to support TPEs Western Australian Projects.
The Company also entered an earn in agreement with TPE and relisted on the LSE
on 23rd November 2021. During the financial year Geolithic provided services
to the Company totalling £70,680 in relation to the first phase exploration
at Yarrol ,Queensland (2024: £nil). As at 30 June 2025 the Company owed
Geolithic £12,062 (2024 :£nil).
Jonathan Evans is a Director of the Company and employed by Tavira Financial
Limited ("Tavira"). Tavira is retained as a Financial Adviser and Joint Broker
to Mila; the annual retainer is £25,000. As at 30 June 2025 Tavira was not a
creditor of the Company (2024: £nil).
Charlie Stephenson is a consultant for the Company and related to a Director
the Company. Mr. Stephenson has been paid £20,500 (2024: £12,500) in
investor relationship consultancy services. As at 30 June 2025 Mr Stephenson
was a creditor of the Company to a value of £4,000 (2024 :£nil).
20. EVENTS SUBESQUENT TO YEAR END
On 7 July 2025 the Company issued 110,870,533 New Ordinary Shares of 0.1p at a
placing price of 0.7p and subscription of 2,857,142 by Mark Stephenson at the
placing price of 0.7p. The Company raised gross proceeds of £776,000 from the
placing and subscription to fund the next phase of exploration and for working
capital generally.
On 7 July 2025 the Company agreed an extension of the 200,000,000 November
2023 investor warrants. These were due to expire on 9 November 2025 and this
has now extended to 9 November 2026, exercisable at 2p each. If the warrants
were to be exercised in full this would raise a total of £4,000,000 for the
Company.
On 23 September the Company appointed a new Chief Operating Officer, Alastair
Goodship.
The Company has notified EMX of its intention to exercise the EMX option and
purchase 100% of the Exploration Portfolio. The exercise price of the option
is the issue of £110,000 of new Mila ordinary shares valued by reference to
the volume weighted average price of the Company's listed shares during thirty
consecutive trading days. The definitive number of Option Fee Shares will be
calculated as at 30 October 2025, and the Company will advise on the allotment
of equity in due course.
The issue of the Option Fee Shares is conditional on completion of legal
transfer of title to the Exploration Portfolio and related licences and
admission of the Option Fee Shares to the Equity (Transition) category of the
Official List.
The Option Fee Shares issued to EMX are subject to a lock up for twelve months
from the date of admission to trading.
The Company also agreed in the EMX Option Agreement to pay additional
consideration for the grant of the option to EMX if, following the initiation
of drilling on-site, Mila's share price exceeded 1.0p for more than 12
continuous trading days. Mila's share price has exceeded 1.0p since 25
September 2025. The new shares will be issued credited as fully paid at a
price equal to the volume weighted average price of Mila's ordinary shares
during thirty consecutive trading days ending on the day before the share
issue.
21. CONTROL
In the opinion of the Directors there is no single ultimate controlling party.
**ENDS**
For more information visit www.milaresources.com or contact:
Mark Stephenson info@milaresources.com (mailto:info@milaresources.com)
Mila Resources Plc
Jonathan Evans +44 (0) 20 7100 5100
Tavira Financial Limited
Nick Emerson +44 (0) 20 3143 0600
SI Capital
Damon Heath +44 (0) 20 3971 7000
Shard Capital Partners LLP
Susie Geliher / Will Turner +44 (0) 20 7236 1177
St Brides Partners Limited
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