20974 29Metals AR23 WEB V1 - Flipbook - Page 95
2023 key
results
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
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29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
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Directors’ Report
Operating and Financial Review
ver the medium to long term, increasing urbanisation, decarbonisation, electrification and the global transition to a greener economy are e pected to
drive significant incremental demand for copper metal.
he supply outlook for copper is sub ect to a range of impediments, including permitting challenges associated with the development of new copper mines,
declining head grades for new and e isting operations, deeper and more comple ore bodies, increased capital intensity, a lack of new discoveries, water
scarcity, and increased risk of resource nationalisation in copper producing nations.
ŝŶĐ
he outlook for zinc is e pected to be relatively stable over the short to medium term, with demand supported by
▪
re uirements for galvanised steel in the construction of renewable energy sources, particularly wind and solar power capacity; and
▪
government infrastructure programs, given refined zinc’s end use in construction, transportation and infrastructure.
Short term downside risks include macroeconomic uncertainty, tapered demand and growth in mined zinc supply from new pro ects.
'ŽůĚĂŶĚ^ŝůǀĞƌ
he outlook for gold and silver is e pected to be positive over the short to medium term, with demand driven by
▪
continued market volatility, concerns in relation to geopolitical tensions and US interest rate cut speculation are e pected to support a positive outlook
for both gold and silver; and
▪
for silver, industrial demand is also e pected to benefit from its use in electromagnetic shielding associated with G developments, solar installations
and rising use in the energy transition.
Basis of Preparation
he onsolidated Financial Statements is a general purpose financial report which
▪
has been prepared in accordance with Australian Accounting Standards (‘^’) and other authoritative pronouncements of the Australian Accounting
Standards Board (‘^’) and the Corporations ct
( th);
▪
complies with International Financial Reporting Standards (‘/&Z^’) and interpretations adopted by the International Accounting Standards Board
(‘/^’);
▪
has been prepared on a historical cost basis e cept for certain financial instruments which have been measured at fair value through the profit or loss;
▪
is presented in Australian dollars with all values rounded to the nearest thousand dollars ($’000) unless otherwise stated, in accordance with
IC Corporations (Rounding in Financial / Directors’ Reports) Instrument 20
;
▪
adopts AAS and Interpretations that have been issued or amended and are effective from anuary 2023. he adoption of AAS and Interpretations
that have been issued or amended during the year did not have a significant impact on the financial report; and
▪
does not early adopt AAS and Interpretations that have been issued or amended but are not yet effective. Refer to ote 3 for further details.
Going Concern
he onsolidated Financial Statements for the year ended 3 ecember 2023 have been prepared on a going concern basis, which assumes that the
Group will be able to realise its assets and meet its debts as and when they become due and payable.
For the purposes of assessing the appropriateness of preparing the onsolidated Financial Statements for the year on a going concern basis, the irectors
have had regard to the significant impact of the treme eather vent at apricorn opper in March 2023 on the Group’s financial results for the year
ended 3 ecember 2023, along with continuing recovery efforts, reflected in
▪
a Group loss after ta of $440,4 3,000 (2022 $4 ,222,000), including non cash impairments of
―
$
0,000,000 to the apricorn opper segment; and
―
$2 ,000,000 to physical assets at apricorn opper damaged or lost;
▪
net cash outflows from operating activities of $3 , 24,000 (2022 $
recovery activities at apricorn opper; and
▪
the Group re uired and obtained covenant relief under the Group corporate debt facilities (refer to ote 2 ).
As a result of the impact of the apricorn opper
including
▪
treme
,
0,000 operating cash inflow), including operating costs associated with
eather vent, the Group took steps during the Reporting eriod to manage financial risk,
drawing on the Group’s US$40,000,000 working capital facility in May 2023;
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