20974 29Metals AR23 WEB V1 - Flipbook - Page 107
2023 key
results
28
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
103
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
Directors’ Report
Operating and Financial Review
t 31 December 2 23, the Group had Total iquidity of 1 1,
Total Liquidity
9,
31 December 2 22
23 ,9 2,
1
ash and cash equivalents
.
31-Dec-2023
31-Dec-2022
1 1, 9
1 1,9 2
ΨΖϬϬϬ
ϭϲϭ͕ϴϱϵ
ϮϯϬ͕ϵϲϮ
vailable to be drawn under the working capital facility
dŽƚĂů>ŝƋƵŝĚŝƚLJϭ
1.
Total iquidity is a non
report.
VAR
1 ,1 3
9,
financial information metric. efer to page 1 for important information regarding the use of non
9,
;ϲϵ͕ϭϬϯͿ
financial information metrics in this
n the context of ongoing engagement regarding the impacts of the xtreme eather vent and ongoing recovery efforts, 29Metals’ lenders provided
covenant relief under the Group’s corporate debt facilities at 31 December 2 23.
inal settlement of stamp duty in relation to the acquisition of Golden Grove remained outstanding at the end of the eporting eriod. 29Metals has
recognised a 2 ,9 ,
accrual for stamp duty at 31 December 2 23, an increase of
,
from the amount recognised at 3 une 2 23 following
engagement with evenue
on its assessment of stamp duty payable.
MATERIAL BUSINESS RISKS
29Metals’ business, and operating and financial performance, is subject to risks and uncertainties, some of which are beyond 29Metals’ control.
29Metals has a risk management framework in place to
▪
identify and evaluate risks and opportunities to 29Metals’ business performance and objectives;
▪
identify and implement controls and other actions to mitigate the impact of risks and capture opportunities; and
▪
review the effectiveness of controls and other actions to mitigate risk.
isks and uncertainties are assessed by reference to the potential for harm or injury; impact on delivery against the Group’s operating plans; financial
impact; environmental harm; non compliance with regulatory obligations; harm to relationships with stakeholders; and harm to the reputation of the
ompany. n most instances, identified risks have the potential to impact across more than one of these dimensions outlined above.
The table below outlines those risks that 29Metals’ has identified as having the potential to have a material adverse impact on 29Metals business
performance and or operating and financial results. The risks outlined in the table are not intended to be an exhaustive description of the risks and
uncertainties that may impact on 29Metals.
dditional risks and uncertainties that 29Metals may be unaware of, or that it currently considers to be immaterial, may also become important factors
that adversely affect 29Metals’ operating and financial performance or position. Many of the risks described below are outside the control of 29Metals,
its Directors and Management. There is no guarantee that 29Metals will achieve its stated objectives or that any forward looking statements or forecasts
will eventuate.
Material business risk
Discussion
ZĞŐƵůĂƚŽƌLJĂƉƉƌŽǀĂůƐ
29Metals’ mining operations are subject to a range of regulatory approval and licencing requirements prescribed under applicable laws in
each jurisdiction in which 29Metals operates. 29Metals’ business performance and future operating and financial results are dependent upon
29Metals obtaining, in a timely fashion, and maintaining regulatory approvals and licences required to support current and future mining
operations.
egulatory frameworks are complex and subject to change, including as a result of changes in government or government policy, changes in
community expectations, and the intervention of the ourts. n addition, regulatory approval and licencing processes may be protracted due
to internal government decision‑making processes which involve the exercise of discretion and may be unpredictable , and statutory and
other rights of stakeholders, including the public, non‑government organisations and anti‑mining groups, in relation to proposed approvals
and licences.
ailures or delays in obtaining relevant regulatory approvals and licences in a timely manner, or failures to maintain relevant regulatory
approvals and licences, may result in a range of adverse impacts on 29Metals, including
▪
requiring 29Metals to change operating plans to maintain operations within existing approval and licence parameters, such as reducing
production rates to extend existing tailings storage facilities’ capacity, and, in certain circumstances may result in 29Metals suspending
operations or entering a period of care and maintenance pending further approvals;
▪
delays or changes to development plans;
▪
changes to the economic viability of 29Metals’ development projects which, in turn, may adversely impact 29Metals’ growth objectives
and result in a revision of Mineral esources and re eserves estimates, or an impairment of the carrying value of 29Metals’ assets;
and
▪
any failure to obtain or maintain relevant regulatory approvals and licenses which causes any of the above events may adversely impact
29Metals’ operational and financial position.
29Metals has ongoing regulatory approval processes at both of its operating sites, including approvals relating to increases in tailings storage
capacity at apricorn opper, as well as approvals that will be required to support the production outlook for Golden Grove.
t apricorn opper specifically, regulatory approvals are required to maintain continuous capacity for the storage of tailings produced from
mineral processing. The applicable regulatory approval process is underway, and the ompany is engaging very closely with regulatory
stakeholders. xisting tailings capacity at apricorn opper is expected to be fully utilised at approximately the end of pril 2 2 . f regulatory
28
