Conico Ltd
Annual Report 2023

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ABN 49 119 057 457 for the Year Ended 30 June 2023 Cover Photo: Mount Thirsty Exploration Table of Contents Highlights for the Year to 30 June 2023 Corporate Directory Review of Operations Directors’ Report Auditor’s Independence 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 Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report Additional Information for Listed Public Companies Tenement Schedule 3 5 6 25 32 33 34 35 36 37 50 51 54 56 Ryberg field area 2 Highlights Mt Thirsty PGE-Ni-Co-Mn-Sc Project, Western Australia (50% owned) High grade drill intersections at Mt Thirsty (“MTJV”) The MTJV returned further thick & high-grade nickel-cobalt-manganese-scandium results including: o MTRC035D: 44.0 metres @ 0.03% Co, 0.47% Ni, 0.16% Mn & 39.2g/t Sc from 2.0 metres, including: o MTRC013D: 59.0 metres @ 0.05% Co, 0.37% Ni, 0.35% Mn & 45.3g/t Sc from 10.0 metres. A number of significant intersections were returned outside of the mineralisation indicating there remains potential for an increase in JORC Resources: o MTRC005D: 48.0 metres @ 0.08% Co, 0.44% Ni, 0.13% Mn & 47.6g/t Sc from 2.0 metres. o MTRC006D: 70.0 metres @ 0.05% Co, 0.45% Ni, 0.47% Mn & 36.3/t Sc from 3.0 metres. Mineral Resource Upgrade The Mt Thirsty Cobalt-Nickel saw a 146% increase in the Mineral Resource Estimate this year (Indicated & Inferred) to 66.2 million tonnes @ 0.06% cobalt, 0.43% nickel and 0.45% manganese. The deposit hosts the second highest Co-Ni ratio for similar predevelopment Co-Ni projects in Australia and is uniquely positioned to potentially produce Pre-Cursor Cathode Active material (pCAM), containing Co, Ni & Mn. Scoping Study A Scoping Study on the Mt Thirsty Project examining high-Pressure Acid Leach (“HPAL”) production of pCAM4 is anticipated to be completed in FY2024. o Addition of HPAL and pCAM to the project could potentially transform project economics. o Comparable HPAL projects typically receive Co and Ni recoveries of 90% and 92%, respectively. o pCAM typically receives a ~50% pricing premium over intermediatory products (MHP / MSP). o Ability to provide a sustainable source of low-cost & ethical critical minerals outside of DRC, PRC & RF7. 3 Mestersvig Zn-Pb-Cu-Ag Project, Greenland (100% owned) Elevated Pb-Zn-Cu-Ag assays for the 2022 drill program were received during the year. The results confirm extension to the mineralisation witnessed at the historic Blyklippen mine, extending south by approximately 13km to the Sortebjerg prospect. Significant drill intercepts include: o Blyklippen drilling: ▪ BKDD003: 5.60 m @ 9.2g/t Ag, 2.7% Pb and 2.2% Zn from 203.95 m ▪ BKDD004: 8.60 m @ 0.4% Pb and 2.2% Zn from 218.4 m o Sortebjerg drilling: ▪ ▪ ▪ SBDD001: 2.70 m @ 6.0% Zn from 86.0 m SBDD003: 4.50 m @ 7.7 g/t Ag and 23.8% Zn from 134.0 m SBDD005: 1.42 m @ 6.7% Zn from 120.45 m The Company intends to investigate possible third-party interest in collaboration, in some form, for its Greenland tenements. 4 Corporate Directory DIRECTORS: Guy T Le Page B.A., B.Sc., B.App.Sc. (Hons), M.B.A., M.Fin.Plan., GradDipAppFin&Inv, GAICD, F.FIN., MAusIMM (Executive) Gregory H Solomon LLB (Non-Executive Chairman) Douglas H Solomon B.Juris. LLB (Hons) (Non-Executive) COMPANY SECRETARY: Jamie M Scoringe B.Comm., Grad.Dip., CPA REGISTERED OFFICE: Level 15, 197 St Georges Terrace Perth, Western Australia 6000 Tel: +61 8 9282 5889 Email: mailroom@conico.com.au Website: www.conico.com.au SOLICITORS: Solomon Brothers Level 15, 197 St Georges Terrace Perth, Western Australia 6000 AUDITORS: Nexia Perth Audit Services Pty Ltd Level 3 88 William Street Perth, Western Australia 6000 SHARE REGISTRY: Advanced Share Registry Services 110 Stirling Highway Nedlands, Western Australia 6009 STOCK EXCHANGE LISTING: ASX Code: CNJ (ordinary shares) CNJO (listed options) Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited. 5 Review of Operations AUSTRALIA Mt Thirsty Cobalt Project (50% Conico Ltd: 50% Greenstone Resources Ltd – Joint Venture) The Mt Thirsty Joint Venture (MTJV) is located 16 kilometres northwest of Norseman, Western Australia (Figure 1). The Project contains the Mt Thirsty cobalt-nickel oxide deposit with a JORC Resource of 26.9 Mt at 0.126% cobalt and 0.54% nickel1. A Pre-Feasibility Study of the Project was completed and announced to the ASX on 20 February 2020. During the current financial year a drilling campaign was completed. Figure 1: Plan view of planned and completed drill hole collars and prospective ultramafic geological horizons. 1 ASX: CNJ 09/09/2019 6 Initially drilling for PGE-Cu Ni hard rock targets were focussed on testing the deeper ultramafic sill horizons at Mt Thirsty, including any potential extensions to the palladium-platinum-gold-copper- nickel Callisto discovery by Galileo Mining Ltd (ASX: GAL) (Galileo), located less than 200 metres from the MTJV’s northern tenement boundary. Table 1 shows the better intercepts for cobalt drilled over 2022 including the six best intercept from MTRC011DA at the Mt Thirsty Project. Table 1 Best cobalt intercepts of 20221 Drilling campaigns over 2023 outlined three distinct zones of horizontal mineralisation across the eastern licence area: 1. Upper Zone: Nickel-Cobalt-Manganese-Scandium (Ni-Co-Mn-Sc) The Upper Zone consisted of a weathered ultramafic peridotite rock hosting nickel-cobalt- manganese-scandium mineralisation. Drilling over 2023 confirmed the presence of a lower, and potentially higher-grade, Ni-Co-Mn-Sc zone, that is currently outside of the existing resource and supported by historical drilling (Figure 1). Better intercepts included: MTRC011DA: 78.0 metres @ 0.11% Co, 0.50% Ni, 1.38% Mn & 46.4g/t Sc from 3.0 metres, incl: o 15.0 metres @ 0.45% Co, 0.91% Ni, 5.42% Mn & 40.9g/t Sc from 45.0 metres MTRC065D: 45.0 metres @ 0.03% Co, 0.33% Ni, 0.23% Mn & 35.9g/t Sc from 5.0 metres, incl: o 8.0 metres @ 0.08% Co, 0.54% Ni, 0.43% Mn & 40.3g/t Sc from 19.0 metres. MTRC035D: 44.0 metres @ 0.03% Co, 0.47% Ni, 0.16% Mn & 39.2g/t Sc from 2.0 metres, including: ▪ 10.0 metres @ 0.09% Co, 0.71% Ni, 0.38% Mn & 23.0g/t Sc from 33.0 metres MTRC013D: 59.0 metres @ 0.05% Co, 0.37% Ni, 0.35% Mn & 45.3g/t Sc from 10.0 metres, including: ▪ 11.0 metres @ 0.18% Co, 0.45% Ni, 1.15% Mn & 49.7g/t Sc from 39.0 metres MTRC042D: 50.0 metres @ 0.05% Co, 0.45% Ni, 0.32% Mn & 36.2g/t Sc from 0.0 metres, including: ▪ 20.0 metres @ 0.09% Co, 0.55% Ni, 0.57% Mn & 28.9g/t Sc from 28.0 metres MTRC008D: 33.0 metres @ 0.05% Co, 0.42% Ni, 0.40% Mn & 56.4g/t Sc from 1.0 metres ▪ 12.0 metres @ 0.08% Co, 0.49% Ni, 0.67% Mn & 43.0g/t Sc from 17.0 metres 7 MTRC012D: 21.0 metres @ 0.08% Co, 0.59% Ni, 0.52% Mn & 36.1g/t Sc from 42.0 metres ▪ 9.0 metres @ 0.06% Co, 0.86% Ni, 0.36% Mn & 33.9g/t Sc from 50.0 metres MTRC009D: 24.0 metres @ 0.06% Co, 0.48% Ni, 0.32% Mn & 40.4g/t Sc from 0.0 metres ▪ 4.0 metres @ 0.16% Co, 0.92% Ni, 0.86% Mn & 29.7g/t Sc from 17.0 metres A combination of reverse circulation and diamond drilling allowed holes to be extended to an average depth of ~350 metres below surface, significantly deeper than the air-core methods previously utilised at Mt Thirsty. As a result of this shallow air-core drilling, large areas beneath the existing resource remain untested. Furthermore, the FY2023 drill campaign employed a comprehensive multi-element assay suite, serving to identify the presence of scandium which had not previously been assayed for, and is not included within the existing resource estimate. The potential addition of scandium to the existing Co-Ni Mt Thirsty Project (PFS released ASX: CNJ 20/02/2020) may provide a valuable by-product revenue stream. The current price of scandium oxide is US$900,000/t; cobalt is US$33,000/t; nickel is US$19,900/t and manganese is US$2,290/t2. 2. Lower Zone: Nickel (Ni) The Lower Zone consisted of a chromium rich basalt hosting a thick horizon of continuous nickel mineralisation. Nickel mineralisation was intersected in 8 out of 14 holes for which assays have been received, with better results including: MTRC009D: 21.8 metres @ 0.28% Ni & 49.8g/t Sc from 268.2 metres, incl: o 7.8 metres @ 0.34% Ni & 57.2g/t Sc from 268.2 metres MTRC007D: 33.5 metres @ 0.26% Ni & 35.8g/t Sc from 237.5 metres, incl: o 11.0 metres @ 0.37% Ni & 49.7g/t Sc from 238.0 metres MTRC012D: 19.8 metres @ 0.28% Ni & 49.7g/t Sc from 313.2 metres, incl: o 8.0 metres @ 0.38% Ni & 49.3g/t Sc from 316.0 metres The 2023 drilling has defined a continuous nickel horizon with a strike extent of 1,000 metres, across strike of 400 metres and an average thickness of ~15.0 metres. 8 Figure 2: Cross-section showing significant intercepts from the 2022-2023 drilling campaign at Mt Thirsty including high-grade intercepts lying outside of the JORC Resource. 3. Middle Zone: Palladium-Platinum-Gold-Copper-Nickel The Middle Zone consisted of an intrusive gabbro sill hosting anomalous palladium-platinum-gold- copper-nickel mineralisation (Callisto style). More significant results included: MTRC006D: 9.0 metres @ 0.14g/t 3E*, 0.09% Ni & 0.02% Cu from 223.0 metres MTRC005D: 6.5 metres @ 0.12g/t 3E, 0.09% Ni & 0.02% Cu from 292.0 metres MTRC012D: 3.0 metres @ 0.10g/t 3E, 0.06% Ni & 0.01% Cu from 247.0 metres *3E = Au+Pd+Pt (g/t) Having intersected both the target horizon and anomalous platinum group element (PGE) mineralisation, it is likely that secondary structural controls are influencing the spatial distribution of high-grade Callisto style mineralisation in the region. Based on currently available information, it is believed that regional folding has created structural traps serving to create localised zones of sulphide accumulation which do not appear to repeat on the MTJV tenements. Significant intercepts from the upper Co-Ni-Mn-Sc zone include: MTRC035D: 44.0 metres @ 0.03% Co, 0.47% Ni, 0.16% Mn & 39.2g/t Sc from 2.0 metres, including: ▪ 10.0 metres @ 0.09% Co, 0.71% Ni, 0.38% Mn & 23.0g/t Sc from 33.0 metres MTRC013D: 59.0 metres @ 0.05% Co, 0.37% Ni, 0.35% Mn & 45.3g/t Sc from 10.0 metres, including: ▪ 11.0 metres @ 0.18% Co, 0.45% Ni, 1.15% Mn & 49.7g/t Sc from 39.0 metres 9 MTRC042D: 50.0 metres @ 0.05% Co, 0.45% Ni, 0.32% Mn & 36.2g/t Sc from 0.0 metres, including: ▪ 20.0 metres @ 0.09% Co, 0.55% Ni, 0.57% Mn & 28.9g/t Sc from 28.0 metres MTRC008D: 33.0 metres @ 0.05% Co, 0.42% Ni, 0.40% Mn & 56.4g/t Sc from 1.0 metres ▪ 12.0 metres @ 0.08% Co, 0.49% Ni, 0.67% Mn & 43.0g/t Sc from 17.0 metres MTRC012D: 21.0 metres @ 0.08% Co, 0.59% Ni, 0.52% Mn & 36.1g/t Sc from 42.0 metres ▪ 9.0 metres @ 0.06% Co, 0.86% Ni, 0.36% Mn & 33.9g/t Sc from 50.0 metres MTRC009D: 24.0 metres @ 0.06% Co, 0.48% Ni, 0.32% Mn & 40.4g/t Sc from 0.0 metres ▪ 4.0 metres @ 0.16% Co, 0.92% Ni, 0.86% Mn & 29.7g/t Sc from 17.0 metres In late May the balance of the Phase 1 drill results were returned with further significant intercepts outside of the mineralised envelope (figure 3) including; MTRC005D: 48.0 metres @ 0.08% Co, 0.44% Ni, 0.13% Mn & 47.6g/t Sc from 2.0 metres, including: - 6.0 metres @ 0.14% Co, 0.62% Ni, 0.85% Mn & 57.4/t Sc from 5.0 metres. MTRC006D: 72.0 metres @ 0.05% Co, 0.44% Ni, 0.47% Mn & 38.8g/t Sc from 3.0 metres, including: - 26.0 metres @ 0.11% Co, 0.59% Ni, 1.06% Mn & 28.2g/t Sc from 47 metres Figure 3: Plan of Mt Thirsty Project showing collar locations of recent RC drilling. 10 Lithium Pegmatite Exploration Assay results from the maiden Lithium-Caesium-Tantalum (LCT) reverse-circulation drill campaign were reported during the 2023 year. The 11-hole geochemical program was principally aimed at assessing the western margin of the Mt Thirsty licences for LCT potential, with historical drilling and mapping previously documenting pegmatites within the MTJV licence area. Importantly, 150 metres to the west of licences held by the MTJV is the Mt Thirsty pegmatite where Galileo previously reported a series of steeply dipping, north-south trending pegmatites. Six grab samples of micaceous (lepidolite) pegmatite were sampled by Galileo returning an average assay grade of 2.3% Li2O, 1.87% Rb and 476 ppm Ta2053. Geological mapping in the area identified eight pegmatite outcrops on the western most margin of the Mt Thirsty licences over a strike extent of 1,000 metres, however many of the historically documented pegmatites are undercover and, as such, the initial LCT program was focused on gathering important geochemical data to support future targeting. No significant intercepts were received as part of the initial LCT drill campaign, however a more detailed geochemical review of these results is ongoing. 1 Source: ASX: AML 09 November 2022; ASX: AML 09 November 2022; ASX:AML 28 January 2022; ASX:ACB 23 November 2022; ASX:ARL 11 February 2022; 2022. ASX:AZY 2 Shanghai Metals Market (SMM) 3 www.galileomining.com.au/wp-content/uploads/2018/05/GAL-Prospectus.pdf November February ASX:AML ASX:ERM ASX:AZY January August 2022; 2022; 2022; 17 28 10 03 11 GREENLAND Overview Conico Limited (“Conico” or “The Company”), has two projects on the underexplored east coast of Greenland (Figure 4), held by its 100% owned subsidiary Longland Resources Ltd. The Ryberg Project is a greenfields exploration project for precious and base metal occurrences in a large igneous province, and Mestersvig which is a brownfields exploration project containing the historic Blyklippen zinc-lead mine and surrounding prospective geology. Focus is on the east coast of Greenland due to its underexplored nature, and close proximity to Europe. Figure 4: Conico’s Greenland exploration portfolio. 12 Mestersvig Zn-Pb-Ag-Cu Project, Greenland (CNJ: 100%) 10 diamond drill holes were completed, and 20 rock chip samples taken during 2022 field work. Drilling targeted vein-hosted Zn-Pb-Cu-Ag mineralisation adjacent to the Blyklippen Mine, along previously un-drilled segments of a fault structure linking the Blyklippen and Sortebjerg prospects. Eight holes intersected base-metal sulphides hosted by massive quartz veins with assay results confirming the presence of high-grade lead and zinc mineralisation. Rock chip samples were taken as part of regional reconnaissance on the Blyklippen-Sortebjerg, Holberg and Nuldal veins. Seven rock chip samples returned high-grade Pb, Zn, Cu, or Ag with grades up to 22.5% lead, 3.6% zinc, 3.1% copper and 226 g/t silver. Mineralisation in drill core and rock chips is analogous to that at the Blyklippen Mine, consisting of quartz vein-hosted galena and/or sphalerite (Figure 5). BKDD005 intersected mineralisation grading 7.6% Pb over 0.67 m approximately 1.7 km south of the mine area. High-grade mineralisation grading 23.75% Zn over 4.5 m was intercepted 9 km south of Blyklippen, on a previously undrilled section of the Blyklippen-Sortebjerg fault in hole SBDD003 (Figure 5). Further to this, many of the high-grade rock chip samples we on sections of veins, or vein systems that have been untested by drilling. Despite the challenging drilling circumstances (ASX announcement 25/11/2022), the Company regards the 2022 drill season to have been a success. Drilling was limited to a small extent of the known vein-bearing fault structures and confirmed that Pb-Zn-Cu-Ag mineralisation is present not just adjacent to the historic Blyklippen Mine but also throughout a wider part of the project area. High- grade mineralisation intersected down dip from the historic Blyklippen mine, along strike from previous drilling at the Sortebjerg prospect, and high-grade galena-bearing rock chips located on the Nuldal and Holberg veins, confirms the Company’s geological model and shows the exploration potential of the project area. Figure 5 SBDD003, showing quartz vein-hosted sphalerite mineralisation with assay samples highlighted in red and annotated. The overall grade of the interval is 4.5 m @ 7.67 g/t Ag and 23.75% Zn from 134 m. 13 Figure 6 Plan map of 2022 and historic drilling at the Blyklippen historic mine, showing significant intercepts (non-verified historical intercepts in grey boxes). 14 Figure 7 Map of the Sortebjerg prospect showing drill holes, with significant intercepts (non-verified historical intercepts in grey boxes). 15 The Nuldal and Holberg fault systems host mineralised veins and are located on the eastern side of the local graben (Figure 6). They are situated outside the main area of historical exploration which has been previously focused on the Blyklippen-Sortebjerg fault on the western boundary of the graben. No previous drilling is known on the Holberg fault and only limited drilling took place in the1950s on the Nuldal fault, approximately 1 km to the south and 500 m lower in elevation from the new high-grade rock chip samples. The Holberg fault has 9 km of un-drilled strike length, which remains open along strike to the north and south. The Nuldal fault has 3 km of un-drilled strike length and is also open along strike to the north and south. The Blyklippen-Sortebjerg, Holberg, and Nuldal faults have all been shown to host high-grade Pb±Zn±Ag mineralisation. In addition, a recent archive discovery of historical high-grade rock samples from Pingo Dal, 38 km to the south of the Blyklippen mine (Figure 6) adds another prospect and new target to the Mestersvig project. Similarities in metals, grades, and geology of the Pingo Dal prospect to the known Blyklippen mineralisation suggest a much broader extent to the Mestersvig ore-district than was previously known. Nuldal Prospect Rock Chips The Nuldal prospect (figures 8 & 9) contains a N-S trending fault, 6 km to the east of and sub-parallel to the Blyklippen-Sortebjerg fault. The prospect was known from historical records and rock samples returned from initial field visits by Conico in 2020 when two rock chip samples returned 60.7% Pb, 0.9% Cu & 236 g/t silver, and 69.5% lead, 0.8% copper & 282 g/t silver (ASX announcement 08/12/2020). Reconnaissance field mapping and sampling was conducted during the 2022 field season with several rock chips from fault-hosted quartz veins containing base-metal sulphides returning significant assay results of up to 22.2% Pb and 184g/t Ag. This area received only minor exploration in the 1950s leading to a small number of drill holes on flatter ground, 1 km south and 500 m vertically below the area of high-grade rock chips. The fault remains untested by drilling along most of its 3 km exposed length. Several high-grade lead, silver, and copper-bearing mineralised outcrops have now been identified along the Nuldal structure. 16 Figure 8 Massive galena outcropping at the Nuldal Prospect, the location of sample 9959 containing 183 g/t Ag and 21.6% Pb. (The white marker is 12 cm long). Holberg Prospect Rock Chips The Holberg prospect contain a N-S trending fault, 4 km to the east of and sub-parallel to the Blyklippen-Sortebjerg fault (figure 9). Reconnaissance mapping and sampling conducted during 2022 located multiple galena-bearing outcrops, with rock chips returning significant assay results of up to 19.0% Pb, 17g/t Ag and 0.44% Cu. The Holberg vein system has never been drilled, and mineralised quartz vein outcrops are known to extend along the structure’s strike for over 9 km. Sortebjerg Prospect Rock Chips The Sortebjerg prospect contains the southern continuation of the Blyklippen-Sortebjerg fault, from 9 to 13 km south of the historic Blyklippen mine (figure 9). Reconnaissance field mapping and sampling was conducted during the 2022 field season along with limited drilling. The surface fieldwork confirmed the location of historic mapped veins and outcrops with sample 9970 returning grades of 22.5% Pb and 226g/t Ag from an area of historical drilling. Conico’s drilling took place along strike to the north of the historical drilling, including an intercept of 4.5 m @ 7.7 g/t Ag and 23.75% Zn in SBDD003. 17 Pingo Dal Prospect Figure 9: Prospects within the Ryberg Project area with reduced-to-pole magnetic intensity data from the 2021 geophysical survey. During archival research in 2022 a region of anomalous high-grade rock chip samples reported in historical exploration work from the 1960s and 70s was identified in the southern part of the tenement licence (figure 9), near the Pingo Dal valley. Anomalous samples are spread over 2.6 km and, as at Blyklippen, are hosted in Permian sandstones which appear to be heavily faulted by normal faults superimposing different units of sandstone against each other. Sixty-four out of 145 samples are reported as having >1%Pb, with thirteen out of 145 samples reported as having >50% Pb, with a further 18 samples having >200 g/t Ag, the highest grades being 76.9% and 380 g/t respectively. Mineralisation is reported to be quartz vein hosted and fault controlled, with some mineralisation also occurring in strata-bound limestones. To the Company’s knowledge no exploration work has been carried out at the location since the 1980s, and only four short drill holes took place in 1957. 18 Ryberg Polymetallic Project, Greenland (100% owned) Figure 10: Prospects within the Ryberg Project area with reduced-to-pole magnetic intensity data from the 2021 geophysical survey. A total of 11 diamond drill holes were completed across four prospects during the 2022 Greenland field season, targeting Cu-Ni-Au- PGE mineralisation at the Sortekap, Miki, Cascata and Pyramid prospects. Assay results were returned from the campaign for nine of the eleven holes and confirm 19 the presence of Cu-Ni-PGE mineralisation in dykes at the Miki and Sortekap prospects, and Au mineralisation in a previously unknown zone of quartz veins in the Sortekap prospect. While the mineralisation intercepted from the 2022 drilling is generally low grade, Conico considers the season and new data collected to be a very successful outcome. Intercepting magmatic sulphide-hosted Cu-Ni-PGE mineralisation, as well as identifying previously unknown quartz vein- hosted gold mineralisation is a positive result for the season and provides building blocks for further work. The Company is now seeking a joint venture (JV) partner to move the Ryberg Project forward. Miki Prospect Detail and Drill Assays The Miki Dyke (figure 10) is an NNE trending body of dolerite and gabbro intruded into units of local basement gneiss. Six drill holes were completed along a 3,700 m length of the dyke where the surface width of the dyke varies between approximately 160 m and 400 m. Mineralisation consisting of chalcopyrite variably associated with bornite, pyrrhotite/pyrite, and magnetite was encountered within the footwall of the dyke and the contact zone with the underlying gneiss. Drill core samples were collected on-site for five of the six holes and shipped for preparation and assay at an accredited laboratory in Ireland. Assay results from the 2022 Miki drilling included the following: MIDD011: MIDD012: 6.00 m @ 0.27% Cu, 0.06% Ni, and 0.31 g/t 3E from 191 metres 1.00m @ 0.55% Cu, 0.11% Ni, and 0.78g/t 3E from 77 metres & 4.68 m @ 0.11% Cu, 0.03% Ni, and 0.19 g/t 3E from 205 metres MIDD013: 1.00m @ 0.11% Cu, 0.04% Ni, and 0.21 g/t 3E from 37 metres & 2.00 m @ 0.12% Cu, 0.11% Ni, and 0.16 g/t 3E from 60 metres & 2.00 m @ 0.24% Cu, 0.05% Ni, and 0.20 g/t 3E from 102 metres & 8.00 m @ 0.22% Cu, 0.04% Ni, and 0.22 g/t 3E from 134 metres & 1.00 m @ 0.87% Cu, 0.08% Ni, and 0.17 g/t 3E from 145 metres MIDD014: 9.72 m @ 0.17% Cu, 0.07% Ni, and 0.20 g/t 3E from 55 metres Mineralisation intercepted in the footwall contact of the Miki dyke albeit low grade, is encouraging as it confirms the targeted mineralisation style of Ni-Cu-PGE-bearing magmatic sulphides coalescing due to gravity within a magma intrusion. The sulphide mineral types intercepted provide good evidence that the dyke is fertile in Cu, Ni and PGE, and given the right structural environment and orientation of the dyke, has the potential to further concentrate these economic sulphides into an area of pooling. Future work will focus on identifying structural changes in the dyke that could accommodate sulphide aggregation to higher grades and thicknesses. 20 Sortekap Prospect Detail and Drill Assays Drilling at Sortekap (figures 10 & 11) targeted induced polarisation (IP) chargeability and magnetic anomalies from 3D inversions of geophysical data collected in 2020 and 2021. SODD004 intersected a zone of mineralisation (figure 11) in the footwall of a mafic dyke and the contact zone with the underlying gneiss, coincidental with an IP chargeability anomaly. Mineralisation included weakly disseminated and/or disseminated chalcopyrite with minor pentlandite. The presence of blebby textured sulphides, as well as chalcopyrite and pentlandite is very encouraging as this indicates the sulphides are magmatic and the magma system has the potential to further concentrate a dense metal-bearing sulphide liquid within the magma system. Hole SODD005 intersected the same mineralised zone along strike but assay results indicate weaker mineralisation. The style of dyke and mineralisation seen in SODD004 (figure 11) and SODD005 resemble that seen in drilling at the Miki Dyke prospect and on surface at the Togeda Prospect, approximately 11 km south of Sortekap. This suggests either a continuation of dyke structures between Togeda and Sortekap prospects or the presence of additional mineralised dykes within the Ryberg Project. SODD006 intersected zone of quartz veins hosted in dolerite and amphibolite within an anomaly from a 3D inversion model of the aeromagnetic data; assay results indicate the zone to be associated with low-grade gold mineralisation. Assay results from the 2022 Sortekap drilling included the following: SODD004: 3.28 m @ 0.41% Cu, 0.07% Ni, and 1.12 g/t 3E from 105.5 m (Including 1.00 m @ 0.83% Cu, 0.11% Ni and 2.49 g/t 3E from 105.5 m) & 1.00 m @ 0.17% Cu, 0.04% Ni, and 0.33 g/t 3E from 112.8 m & SODD006: 5.57 m @ 0.15g/t Au from 344.43 m & 1.94 m @ 0.26 g/t Au from 383.2 m & 7.00 m @ 0.23 g/t Au from 395 m. Figure 11 Image of drill core in SODD004 showing part of the interval containing 3.28 m @ 0.41% Cu, 0.07% Ni, and 1.12 g/t 3E from 105.5m highlighted in magenta, and closeup of blebby magmatic sulphides expanded in red. 21 Cascata and Pyramid Reconnaissance Drilling CADD003 was drilled to a depth of 416.5 m at Cascata (Figure 12) in 2022. The hole was located approximately 1,600 m SW from the two holes drilled by Conico in 2021 to investigate the volcano- sedimentary sequence and the proposed layered gabbroic intrusive intersected by previous drilling. The hole drilled through dykes and volcaniclastic units containing weakly disseminated pyrite and pyrrhotite before encountering a gabbro from 369 m to the end of the hole at 416.5 m. Forty-eight samples to test the gabbroic intrusion and establish geochemical backgrounds were assayed with no significant assays. At Pyramid (Figure 12) PYDD001 was drilled to test under a ridge containing magnetite-altered float rocks. The hole intersected a sequence of micaceous shales and calcareous sandstones but was abandoned due to poor ground conditions before reaching the planned target depth. No samples from this drill core were sent for analysis. Figure 12 Prospects within the Ryberg Project area with reduced-to-pole magnetic intensity data from the 2021 geophysical survey. 22 Corporate Mr James Richardson resigned as a non-executive director of the Company on the 14th of October 2022 after a period of 13 years’ service. Mr Aaron Gates resigned as Company Secretary of the Company on the 9th of January 2023. Mr Jamie Scoringe was appointed as Company Secretary of the Company on the 9th of January 2023. Mr Thomas Abraham-James resigned as a non-executive director of the Company on the 31st of January 2023. Capital Raisings The Company finalised a non-renounceable, pro-rata rights offer to Conico shareholders (“Rights Issue”) on record at 17th of March 2023, at an issue price of $0.01 per share, with one for two CNJO options consistent with the placement. Upon closure of the rights issue, the Company announced on the 26th of April 2023 that $651,265 had been raised (before expenses of the issue). Further to a General Meeting of shareholders on the 20th of June 2023, the Shareholders resolved to ratify the private placement undertaken in March 2023, and approve the issue of associated 24,999,967 CNJO options to those investors and 15,000,000 CNJO options to the Lead Manager. Dispute with Drilling Contractor The directors of Conico advise that Cartwright Drilling Inc (“Cartwright”), a drilling company incorporated in Newfoundland (Canada) that was engaged by Conico to undertake diamond drilling at the Ryberg and Mestersvig Projects over the 2022 Greenland field season, has commenced an arbitration in Newfoundland to resolve a dispute in respect to invoices received by Conico from Cartwright for the 2022 field season, which Conico has refused to pay. It is the opinion of the board of Conico that the performance of Cartwright was materially deficient in a number of key areas and not up to industry best practice and has caused loss to Conico through scheduled drilling not having been completed. The total amount of the invoices in dispute is C$1,419,203 (approximately A$1,575,315). Cartwright currently hold a bond of C$300,000 on behalf of Conico. In the arbitration, Conico will also seek to recover substantial damages from Cartwright. As of the date of this report, arbitration proceedings are continuing. 23 Disclaimer The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken based on interpretations or conclusions contained in this report will therefore carry an element of risk. This report contains forward-looking statements that involve a number of risks and uncertainties. These forward- looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this report. No obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Competent Person´s Statements JORC Section Competent Person Employer Professional Membership Guy Le Page Director of Conico Ltd MAusIMM Project and Discipline Greenland Exploration Mt Thirsty Exploration Exploration Results Exploration Results Mt Thirsty Resource Estimation Mineral Resources Mt Thirsty Metallurgy Exploration Results and Ore Reserves Mt Thirsty Mining Ore Reserves Frank Blanchfield Glenn Poole David Reid Peter Nofal Employee of Greenstone Resources Ltd Golder Associates Pty Ltd AMEC Foster Wheeler Pty Ltd trading as Wood Snowden Mining Industry Consultants Pty Ltd MAusIMM MAusIMM FAusIMM FAusIMM The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves for the Mt Thirsty Cobalt-Nickel Project and Exploration Results for the Greenland Projects is based on and fairly represents information compiled by the Competent Persons listed in the table above. The Competent Persons have sufficient relevant experience to the style of mineralisation and type of deposits under consideration and to the activity for which they are undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). For new information, the Competent Persons consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Previously announced information is cross referenced to the original announcements. In these cases, the company is not aware of any new information or data that materially affects the information presented and that the material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified the original market announcements. from 24 DIRECTORS’ REPORT The directors present their report together with the consolidated financial statements of the Group comprising Conico Ltd (the Company) and its controlled entities and the Group’s interest in a joint venture for the financial year ended 30 June 2023. Directors The names of directors in office at any time during or since the end of the year are: Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson (resigned 14 October 2022) Thomas Abraham-James (resigned 31 January 2023) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Company Secretary The following person held the position of Company Secretary at the end of the financial year and at the date of this report: Mr Jamie M Scoringe joined the company as Chief Financial Officer and Company Secretary on 9 January 2023. Mr Scoringe is a Bachelor of Commerce, CPA and chartered Company Secretary, having completed a graduate diploma in Company Secretarial practice. Mr Scoringe has over 30 years accounting experience across a range of listed and private enterprise. Principal Activities The principal activity of the Group during the financial year ended 30 June 2023 was mineral exploration. Operating Results The loss of the Group after providing for income tax amounted to $885,659 (2022: $940,166). Cash outflow from operating activities was $762,801 (2022: $817,980). Dividends Paid or Recommended No dividends were paid or declared for payment during the year. Review of Mineral Exploration Operations A comprehensive review of the operations of the Group during the year ended 30 June 2023 is set out in the Review of Operations on Page 6. Financial position The net assets of the Group have increased by $4,460,514 from 30 June 2022, to $37,670,429 in 2023. This increase is largely due to the capital raisings and investments in the Group’s tenements completed during the year. The Group has reported a net loss for the year of $885,659 (2022: $940,166) and a cash outflow from operating activities of $762,801 (2022: $817,980). The directors carefully manage expenditure and, subject to being able to raise further finance, are of the view, based on cash flow forecasts, that the Group will be able to continue its operations as a going concern. The continuing applicability of the going concern basis of accounting is dependent upon the Group’s ability to source additional finance. The directors are confident that the Group will be successful in securing additional funds, should the need arise. The directors are also aware that the Group has the option, if necessary, to defer expenditure and reduce administration costs in order to minimise its capital raising requirements. Significant Changes in State of Affairs In the opinion of the directors, other than disclosed elsewhere in this report, there were no significant changes in the state of affairs of the Group that occurred during the year. After Balance Date Events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. Future Developments, Prospects and Business Strategies The Group proposes to continue with its exploration and evaluation program as detailed in the Review of Operations, with a summary of the risks associated with its strategies outlined below. Greenland Investment Strategy The Group holds (through a wholly owned subsidiary) two 100%-owned mineral projects in Greenland that it commenced exploring in 2020, and which are considered to be prospective for copper, nickel, platinum group elements (PGE), lead and zinc mineralisation. 25 DIRECTORS’ REPORT Mount Thirsty Joint Venture Strategy The Group also holds a 50% joint venture interest in a mineral project at Mt Thirsty, near Norseman in Western Australia, with both a nickel, cobalt, manganese lateritic deposit and a hard rock prospect for nickel, cobalt, PGE and other metals. Mineral Exploration Risks The Group faces the usual risks faced by “greenfield” exploration companies. In particular, the exploration results it achieves may not result in the discovery of a commercially viable orebody. Further, Conico may have to raise further funds from time to time to continue to fund the exploration, which may or may not be possible for various reasons, including it not discovering a commercially viable orebody, and/ or weak market conditions and/ or prices for the metals Conico is hoping to produce. The Directors note untested, upside potential on all three of the aforementioned Conico projects. The Group may choose to try to sell, or find a joint venture partner for, one or more of its assets, which may or may not be possible. Environmental Issues The Group is the subject of environmental regulation with respect to mining exploration and will comply fully with all requirements with respect to rehabilitation of exploration sites. 26 DIRECTORS’ REPORT Information on Directors Gregory H Solomon Non-Executive Chairman Qualifications Experience LLB Appointed chairman March 2006. Board member since March 2006. A solicitor with more than 30 years of Australian and international experience in a wide range of areas including mining law, commercial negotiation (including mining and exploration joint ventures) and corporate law. He is a partner in the legal firm, Solomon Brothers and has previously held directorships of various public companies since 1984. Interest in Shares and Options 51,292,600 Ordinary Shares, 6,411,576 CNJO Options Directorships in other listed entities Eden Innovations Ltd, Tasman Resources Ltd Guy T Le Page Qualifications Experience Executive B.A., B.Sc.. B.App.Sc. (Hons).,M.B.A., M.Fin.Plan, GradDipAppFin&Inv, F.FIN., MAusIMM Board member since 30 March 2006. Currently a corporate adviser specialising in resources. He is actively involved in a range of corporate initiatives from mergers and acquisitions, initial public offerings to valuations, consulting and corporate advisory roles. He previously spent 10 years as an exploration and mining geologist in Australia, Canada and the United States. His experience spans gold and base metal exploration and mining geology. Interest in Shares and Options 29,793,200 Ordinary Shares, 571,270 CNJO Options Directorships in other listed entities Mt Ridley Mines Ltd, Tasman Resources Ltd Douglas H Solomon Non-Executive Qualifications Experience BJuris LLB (Hons) Board member since 30 March 2006. A Barrister and Solicitor with more than 30 years’ experience in the areas of mining, corporate, commercial and property law. He is a partner in the legal firm, Solomon Brothers. Interest in Shares and Options 51,651,400 Ordinary Shares, 6,456,426 CNJO Options Directorships in other listed entities Eden Innovations Ltd, Tasman Resources Ltd James B Richardson Non-Executive (resigned 14 October 2022) Interest in Shares and Options 48,416,668 Ordinary Shares, 3,458,334 CNJO Options Thomas Abraham-James Non-Executive (resigned 31 January 2023) Interest in Shares and Options 28,843,795 Ordinary Shares, 5,000,000 4 cent ESOP Options 27 Remuneration Report (Audited) This report details the nature and amount of remuneration for each director of Conico Ltd, and for the executives receiving the highest remuneration. Remuneration Policy The remuneration policy of Conico Ltd has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long- term incentives based on key performance areas affecting the company’s financial results. The board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the company, as well as create goal congruence between directors, executives and shareholders. The board’s policy for determining the nature and amount of remuneration for board members and senior executives of the company is as follows: All executives receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits and options. Executives are also entitled to participate in the employee share and option arrangements. All Australian directors and executives receive superannuation and do not receive any other retirement benefits. All remuneration paid to directors and executives is valued at the cost to the company and expensed. Options are valued using the Black-Scholes methodology or an appropriate market-based pricing valuation methodology. The board policy is to remunerate non-executive directors at market rates for time, commitment, and responsibilities. The Group does not have a policy on directors hedging their shares. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders. Fees for non-executive directors are not linked to the performance of the company. However, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in the company. Details of Remuneration for Year Ended 30 June 2023 The remuneration for each director and each of the executive officers of the Group during the year was as follows: Key Management Person Short-term Benefits Post- employment benefits Other long-term benefits Term- ination Benefits Share-based payments Total Salary and Fees Cash bonus Other benefit Super- annuation Other Other Equity Options $ $ $ $ $ $ $ $ $ 2023 Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson1 Thomas Abraham-James2 Aaron P Gates3 Jamie M Scoringe3 2022 Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson 60,000 36,000 48,000 12,000 56,172 - 212,172 60,000 36,000 48,000 36,000 - - - - - - - - - - - Thomas Abraham-James2 200,639 25,000 4,676 Aaron P Gates3 - - - - - - - 549 - 6,350 4,020 5,060 1,590 - - 549 17,020 - - - - 5,700 3,420 4,800 3,600 - - 380,639 25,000 4,676 17,520 28 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 66,350 40,020 53,060 13,590 56,721 5,300 5,300 5,300 235,041 - - - - 65,700 39,420 52,800 39,600 - 230,315 - - - 427,835 DIRECTORS’ REPORT Remuneration Report (Audited - continued) 1 Mr Richardson resigned on 14 October 2022 2 Mr Abraham-James was engaged as a contractor by Longland Resources Ltd (a wholly owned subsidiary of Conico Ltd) during the year. The above payments include contractor payments and directors fees. Mr Abraham-James resigned on 31 January 2023. 3 Mr Gates and Mr Scoringe are remunerated by Princebrook Pty Ltd (a company in which Mr Gregory Solomon and Mr Douglas Solomon have an interest) under the Management Services agreement with the Company. During the year the Company paid $130,000 (2022: $144,000) to Princebrook Pty Ltd for management services. The Management Services Agreement may be terminated by giving not less than three months’ written notice. Mr Gates resigned and Mr Scoringe was appointed on 9 January 2023. Mr Scoringe was granted 1,000,000 options in the company exercisable at $0.025 by 1 January 2026. Number of Options Held by Key Management Personnel Balance 1.7.2022 Granted as Compen- sation Options Exer- cised Net Change Other* Balance 30.6.2023 Total Vested 30.6.2023 Total Exer- cisable 30.6.2023 Total Unexer- cisable 30.6.2023 Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson1 Thomas Abraham- James1 Aaron P Gates1 Jamie M Scoringe2 3,205,788 3,228,213 571,270 3,458,334 5,000,000 1,475,000 - - - - - - - 1,000,000 Total 16,938,605 1,000,000 - - - - - - - - 3,205,788 6,411,576 6,411,576 6,411,576 3,228,213 6,456,426 6,456,426 6,456,426 - 571,270 571,270 571,270 (3,458,334) (5,000,000) (1,475,000) - - - - - - - - - - 1,000,000 1,000,000 1,000,000 (3,499,333) 14,439,272 14,439,272 14,439,272 *Net Change Other refers to options that have been purchased, sold, lapsed or issued during the year. 1 Mr Richardson, Mr Abraham-James, Mr Gates resigned during the year. 2 Mr Scoringe was granted 1,000,000 options in the company exercisable at $0.025 by 1 January 2026. - - - - - - - - Number of Shares Held by Key Management Personnel Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson1 Thomas Abraham-James1 Aaron P Gates1 Jamie M Scoringe Total Balance 30.6.2022 Received as Compensation Options Exercised Net Change Other* Balance 30.6.2023 44,881,024 45,194,974 29,793,200 48,416,668 28,843,795 3,550,000 - 200,679,661 - - - - - - - - - - - - - - - - 6,411,576 51,292,600 6,456,426 51,651,400 - 29,793,200 (48,416,668) (28,843,795) (3,550,000) - - - 100,000 100,000 (67,842,461) 132,837,200 *Net Change Other refers to shares purchased, sold or other movements. 1 Mr Richardson, Mr Abraham-James, Mr Gates resigned during the year. 29 DIRECTORS’ REPORT Directors Meetings During the financial year, five meetings of directors were held. Attendances by each director were as follows: Directors’ Meetings Number eligible to attend Number attended Circulatory Resolutions 5 5 5 1 4 5 5 4 1 4 4 4 4 1 4 Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson Thomas Abraham-James Indemnifying Officers The company has arranged for an insurance policy to insure the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The total premium payable was $24,064. Proceedings on Behalf of Group No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings. The Group was not a party to any such proceedings during the year. Options At the date of this report, the unissued ordinary shares of Conico Ltd under option are as follows: Grant Date Date of Expiry Exercise Price Number of Options 22 September 2020 21 September 2023 24 November 2020 24 November 2023 15 January 2021 15 January 2024 19 May 2021 30 September 2024 22 September 2021 30 November 2024 Various 6 May 2022 16 Dec 2022 Various 20 January 2024 3 May 2025 1 January 2026 31 December 2026 $0.022 $0.040 $0.040 $0.040 $0.100 $0.070 $0.016 $0.025 $0.026 1,000,000 6,000,000 2,300,000 10,000,000 33,500,000 75,496,307 1,000,000 1,000,000 281,140,659 411,436,966 During the year ended 30 June 2023, no ordinary shares of Conico Ltd were issued on the exercise of options granted under the Conico Ltd Employee Share Option Plan. No shares have been issued since in terms of the plan. No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of any other body corporate. Non-audit Services No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2023. 30 DIRECTORS’ REPORT Auditor’s Independence Declaration The auditor’s independence declaration for the year ended 30 June 2023 has been received and can be found on page 32. Signed in accordance with a resolution of the Board of Directors. Gregory H Solomon Chairman Dated this 21st day of September 2023 31 To the directors of Conico Limited Auditor’s independence declaration under section 307C of the Corporations Act 2001 As lead auditor for the audit of the financial statements of Conico Limited for the financial year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. Yours sincerely Nexia Perth Audit Services Pty Ltd M. Janse Van Nieuwenhuizen Director Perth 21 September 2023 32 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2023 Other Income Accounting and audit Depreciation and amortisation Employee benefits expense Finance costs Foreign exchange gain/(loss) Insurance expense Legal and other consultants Management fees Media and marketing Other expenses Rent Travel and accommodation Loss before income tax Income tax benefit Loss for the year Other Comprehensive Income Items that may be reclassified to profit or loss: Foreign currency translation reserve Income tax relating to comprehensive income Total other comprehensive income Note 2 Consolidated 2023 $ 2022 $ 90,048 (63,759) (9,552) 1,940 (33,944) (5,055) (199,320) (206,620) (298) (1,033) (29,818) (159,770) (130,000) (161,185) (207,366) (3,184) (10,422) - 2,018 (42,404) (96,998) (144,000) (190,285) (152,744) (9,176) (62,898) (885,659) (940,166) 3 - - (885,659) (940,166) 1,338,261 (497,020) - - 1,338,261 (497,020) Total Comprehensive income/(loss) attributable to members of the parent entity, net of tax 452,602 (1,437,186) Basic/Diluted loss per share (cents per share) 5 (0.06) (0.09) The accompanying notes form part of these financial statements. 33 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023 ASSETS CURRENT ASSETS Cash and cash equivalents Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Exploration and evaluation assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY Note Consolidated 2023 $ 2022 $ 7 8 9 10 12 13 14 15 733,915 79,409 813,324 4,916,710 398,863 5,315,573 554,094 64,870 36,854,447 28,939,207 37,408,541 29,004,077 38,221,865 34,319,650 538,936 538,936 12,500 12,500 847,234 847,234 262,500 262,500 551,436 1,109,734 37,670,429 33,209,916 43,658,621 39,980,010 2,788,412 1,120,851 (8,776,604) (7,890,945) 37,670,429 33,209,916 The accompanying notes form part of these financial statements. 34 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2023 Consolidated Group Ordinary Share Capital Foreign Currency Translation Reserve Option Reserve Retained Earnings Total $ $ $ $ $ Balance at 30 June 2021 31,425,251 (21,279) 1,429,050 (6,950,779) 25,882,243 Shares issued (net of costs) 8,554,759 Issue of options Net loss for the year Other comprehensive income Total comprehensive income / (loss) - - - - - - - (497,020) (497,020) - 210,100 - - 8,554,759 210,100 - - - (940,166) (940,166) - (497,020) (940,166) (1,437,186) Balance at 30 June 2022 39,980,010 (518,299) 1,639,150 (7,890,945) 33,209,916 Shares issued (net of costs) 3,678,611 Issue of options Net loss for the year Other comprehensive income Total comprehensive income / (loss) - - - - - - - 1,338,261 1,338,261 - 329,300 - - 3,678,611 329,300 - - - (885,659) (885,659) - 1,338,261 (885,659) 452,602 Balance at 30 June 2023 43,658,621 819,962 1,968,450 (8,776,604) 37,670,429 The accompanying notes form part of these financial statements. 35 CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2023 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest paid Interest received R&D tax rebate Note Consolidated 2023 $ 2022 $ 101,443 1,586 (872,142) (820,009) - 7,898 - - 443 - Net cash provided by/(used in) operating activities 20 (762,801) (817,980) CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Payments for property, plant & equipment Net cash provided by/(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issues (net of costs) Repayment of loans Net cash provided by/(used in) financing activities Net increase/(decrease) in cash held Net increase/(decrease) due to foreign exchange movements Cash at beginning of financial year Cash at end of financial year (6,803,258) (6,876,744) (612,206) (46,171) (7,415,464) (6,922,915) 4,002,611 8,758,559 - 4,002,611 (4,175,654) (7,141) 4,916,710 733,915 - 8,758,559 1,017,664 (19,206) 3,918,252 4,916,710 7 The accompanying notes form part of these financial statements. 36 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general-purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The financial report of Conico Limited and its controlled entities (Group) complies with International Financial Reporting Standards (IFRS). The financial report covers the consolidated group of Conico Ltd and its controlled entities as at and for the year ended 30 June 2023. Conico Ltd is a listed public company, incorporated and domiciled in Australia. The Group is a for-profit entity and primarily is involved in mineral exploration for cobalt, nickel and manganese. The financial report was authorised for issue on the 21st of September 2023 by the Board of Directors. The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. Basis of Preparation The accounting policies set out below have been consistently applied to all years presented. Reporting Basis and Conventions The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. These consolidated financial statements are presented in Australian dollars. The functional currency of Longland Resources Limited is British Pound Sterling. The functional currency of all other Group entities is Australian dollars. Going Concern These financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business. The Group has reported a net loss for the year of $885,659 (2022: $940,166) and a cash outflow from operating activities of $762,801 (2022: $817,980). The directors carefully manage expenditure and, subject to being able to raise further finance, are of the view, based on cash flow forecasts, that the Group will be able to continue its operations as a going concern. The continuing applicability of the going concern basis of accounting is dependent upon the Group’s ability to source additional finance. The directors are confident that the Group will be successful in securing additional funds, should the need arise. The directors are also aware that the Group has the option, if necessary, to defer expenditure and reduce administration costs in order to minimise its capital raising requirements. Based on these facts, the directors consider the going concern basis of preparation to be appropriate for this financial report. Should the Company be unsuccessful in securing additional finance, there is a material uncertainty which may cast significant doubt whether the Group will be able to continue as a going concern and therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial statements do not include any adjustments relative to the recoverability and classification of recorded asset amounts or, to the amounts and classification of liabilities that might be necessary should the entity not continue as a going concern. Accounting Policies a. Principles of Consolidation A controlled entity is any entity Conico Ltd is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. A list of controlled entities is contained in Note 16 to the financial statements. All controlled entities have a June financial year-end. All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled entities have been changed where necessary to ensure consistencies with those policies applied by the parent entity. b. Interests in a Joint Operation The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income that it earns from the joint operation. Details of the Group’s interests are shown at Note 11. 37 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Income Tax The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future tax profits will be available against which they can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the group will derive sufficient future assessable income to enable the benefit to be realised. The R&D tax offset is recognised upon receipt. d. Property, Plant and Equipment Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciation rates used for each class of depreciable assets are: Plant and equipment 15 –50% Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss. e. Exploration and Evaluation Expenditure Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward where right of tenure is current and to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. f. Impairment of Non-financial Assets At each reporting date, the Group reviews the carrying values of its non-financial / tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, 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 Statement of Profit or Loss and Other Comprehensive Income. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs g. Cash and cash equivalents Cash in the statement of financial position comprises cash at bank and in hand and short-term deposits, with an original maturity of three months or less, that are readily convertible to known amounts of cash, and that are subject to an insignificant risk of changes in value. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. 38 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. The Group makes use of a simplified approach in accounting for trade and other receivables and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the entity uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses. Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. Impairment At each reporting date, the Group assesses at a specific asset level whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the Statement of Profit or Loss and Other Comprehensive Income. i. Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. j. Revenue Revenue is measured at the transaction price received or receivable (which excludes estimates of variable consideration) allocated to the performance obligation satisfied and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT, GST and other sales related taxes. As the expected period between transfer of a promised service and payment from the customer is one year or less then no adjustment for a financing component has been made. Revenue arising from the provision of services is recognised when and to the extent that the customer simultaneously receives and consumes the benefits of the Group’s performance or the Group does not create an asset with an alternative use but has an enforceable right to payment for performance completed to date. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. k. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. l. New accounting standards and interpretations 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 their operations and effective for the current year. 39 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) m. Segment reporting Segment results that are reported to the Group’s board of directors (the chief operating decision maker) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. n. Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. o. New accounting standards and interpretations not yet adopted A number of new standards and amendments to standards are effective for annual periods beginning after 1 July 2022, and have not been applied in preparing these consolidated financial statements. Management are of the view that these standards and amendments will not have a significant impact on the financials. p. Share-based payments The Group provides benefits to employees (including senior executives) of the Group in the form of share- based payments. The cost of these share-based payments is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value at grant date is measured by use of the Black-Scholes Option Pricing Model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the entity’s estimate of shares that will eventually vest. For cash-settled share-based payments, a liability equal to the portion of the goods or services received is recognised at the current fair value determined at each reporting date. q. Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the net profit/loss attributable to the owners of Conico Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to consider the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. r. Critical accounting judgements, estimates and assumptions Judgements made by management in the application of IFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant note to the financial statements. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the balance date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year: Impairment The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. The Company did not recognise any impairment charges on any of its tenements during the year (2022: nil). Exploration and evaluation costs carried forward The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. 40 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) r. Critical accounting judgements, estimates and assumptions continued Exploration and evaluation costs carried forward continued Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices. To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will increase losses and reduce net assets in the period in which this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will increase losses and reduce net assets in the period in which this determination is made. Share-based payments The Company makes equity settled share-based payments to certain employees and consultants, which are measured at fair value at the date of grant and expensed on a straight-line basis over the vesting period, based on the Company’s estimate of shares that will eventually vest. The fair values are determined using the Black-Scholes Option Pricing Model. Vesting assumptions are reviewed during each reporting period to ensure they reflect current expectations. Loans to controlled entities The directors believe that the recoupment of the inter-company receivables from Conico Ltd to Australian Cobalt Ltd (formerly Meteore Metals Pty Ltd) and Longland Resources Ltd is dependent on the successful development and commercial exploitation or, alternatively, the sale of the exploration assets held by the controlled entity. NOTE 2: OTHER INCOME — interest received — other income Total Other Income NOTE 3: INCOME TAX BENEFIT Consolidated 2023 $ 2022 $ 7,898 82,150 90,048 443 1,497 1,940 a. The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as follows: Prima facie tax payable on loss from ordinary activities before income tax at 25% (2022: 25%) (221,415) (244,443) Tax effect of: — — Current year temporary differences not recognised Current year tax losses not recognised Income tax (expense) / benefit b. Components of deferred tax Unrecognised deferred tax asset – losses Unrecognised deferred tax liability – provisions and accruals Unrecognised deferred tax asset – capital raising costs 9,372 561,801 212,042 (317,358) - - 5,813,067 5,825,066 (8,040) 665,520 258,865 562,861 Unrecognised deferred tax liabilities – exploration and evaluation (5,584,851) (3,750,282) Net Unrecognised deferred tax assets 885,696 2,896,510 Deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised. The benefit of the tax losses will only be obtained if the Group complies with conditions imposed by the relevant tax legislation. 41 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 4: AUDITOR’S REMUNERATION Remuneration of the auditor NOTE 5: LOSS PER SHARE a. Reconciliation of loss to profit or loss Profit/(loss) Loss used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS Loss per share – cents per share Consolidated 2023 $ 2022 $ 34,256 21,475 (885,659) (940,165) (885,659) (940,165) 1,469,769,132 1,034,941,587 (0.06) (0.09) As the Company has incurred a loss, any exercise of options would be antidilutive, therefore the diluted and basic earnings per share are equal. NOTE 6: EMPLOYEE BENEFITS a. Employee benefits expense Expenses recognised for employee benefits are analysed below: Short-term employee benefits Post-employment benefits Share-based payments Capitalised in exploration and evaluation assets Total b. Share-based employee remuneration 695,810 407,315 17,020 5,300 17,520 6,100 (518,810) (224,315) 199,320 206,620 Included under employee benefits expense in the statement of profit or loss and other comprehensive income is $5,300 (2022: $6,100) which relates, in full, to equity settled share-based payment transactions. All options granted to personnel/key consultants are over ordinary shares in Conico Ltd, which confer a right of one ordinary share for every option held. When issued, the shares carry full dividend and voting rights. NOTE 7: CASH AND CASH EQUIVALENTS Cash at bank Reconciliation of cash Cash at the end of the financial year as shown in the consolidated statement of cash flows is reconciled to items in the Statement of financial position as follows: Cash and cash equivalents NOTE 8: OTHER CURRENT ASSETS Prepayments GST Recoverable 733,915 4,916,710 733,915 4,916,710 733,914 4,916,710 733,914 4,916,710 19,335 60,074 79,409 374,597 24,266 398,863 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 9: PLANT AND EQUIPMENT Equipment: At cost Accumulated depreciation Total Plant and Equipment a. Movements in Carrying Amounts Consolidated 2023 $ 2022 $ 759,917 147,712 (205,824) (82,842) 554,094 64,870 Movement in the carrying amount between the beginning and the end of the current financial year. Opening balance Assets purchased Disposals Net exchange differences Depreciation expense Closing balance b. Impairment losses 64,870 562,398 - 64,481 54,920 49,527 (2,885) (4,213) (137,655) (32,479) 554,094 64,870 The total impairment loss recognised in the consolidated statement of profit or loss and other comprehensive income during the current year amounted to $Nil (2022: $Nil). NOTE 10: EXPLORATION AND EVALUATION ASSETS Balance at the beginning of the financial year Expenditure incurred during the year Net exchange differences Balance at the end on the financial year 28,939,207 22,272,897 6,763,407 6,456,342 1,151,833 209,968 36,854,447 28,939,207 Capitalised costs amounting to $6,803,258 (2022: $6,876,744) have been included in cash flows from investing activities in the statement of cash flows for the consolidated entity. NOTE 11: JOINT OPERATION A wholly controlled entity, Australian Cobalt Ltd (formerly Meteore Metals Pty Ltd), has a 50% interest in the Mt Thirsty Joint Venture, whose principal activity is the development of the Mt Thirsty nickel, cobalt and manganese project. The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income that it earns from the joint operation. Share of joint operation results and financial position: Current Assets Non-Current Assets Total Assets Current Liabilities Total Liabilities Revenue Expenses Profit / (Loss) before income tax Income tax expense Profit / (Loss) after income tax NOTE 12: TRADE AND OTHER PAYABLES Trade payables Sundry payables and accrued expenses 43 177,815 5,593 5,180,341 3,571,136 5,358,156 3,576,729 324,813 324,813 - (94,642) (94,642) - 70,245 82,745 - (7,481) (7,481) - (94,642) (7,481) 225,163 313,773 109,755 737,479 538,936 847,234 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 13: PROVISIONS Opening balance Movements Closing balance Consolidated 2023 $ 2022 $ 262,500 262,500 (250,000) - 12,500 262,500 The remaining balance relates to a rehabilitation provision for the Mount Thirsty project. Included in the prior year was a provision from the 2004 acquisition whereby a royalty sum is payable to prior owners of the Mount Thirsty tenements which is only due and payable when and if the tenements commence commercial production. Upon review of the acquisition agreement during the period, the provision was reversed to the acquisition cost of the assets given the circumstances for the provision to be incurred had not been met. The provision will be reinstated when and if the tenements commence commercial production. NOTE 14: ISSUED CAPITAL 1,570,094,946 (2022: 1,358,268,874) ordinary shares 43,547,621 39,980,010 2014 2014 2023 2022 No. No. 2023 $ 2022 $ a. Ordinary shares At the beginning of reporting period 1,358,268,874 916,367,041 39,980,010 31,425,251 Shares issued during the year (net of costs) 208,876,374 425,054,000 3,566,919 5,880,992 Shares issued through exercise of options 2,949,698 16,847,833 111,692 2,673,767 Total shares issued during the year (net of costs) 211,826,072 441,901,833 3,678,611 8,554,759 At reporting date 1,570,094,946 1,358,268,874 43,658,621 39,980,010 Ordinary shares participate in dividends and in the proceeds of winding up in proportion to the number of shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. The Company has no authorised share capital or par value. All issued shares are fully paid. b. Options At the beginning of reporting period Issued to shareholders and investors as free attaching options Issued to brokers as lead manager or underwriter Issued to Key Management Personnel or employees Total options issued during the year Options lapsed during the year Options exercised during the year At reporting date c. Capital Management 2023 No. 2022 No. 325,823,399 99,144,140 57,563,265 179,027,092 30,000,000 63,500,000 1,000,000 1,000,000 88,563,265 243,527,092 - - (2,949,698) (16,847,833) 411,436,966 325,823,399 Management controls the working capital of the Company in order to maximise the return to shareholders and ensure that the Company can fund its operations and continue as a going concern. Management effectively manages the Company’s capital by assessing the Company’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders and capital raisings. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year. 44 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 15: RESERVES a. Option Reserve The option reserve records items recognised as expenses on valuation of share options. b. Foreign Currency Translation Reserve The foreign currency translation reserve records exchange differences arising on the translation of foreign subsidiaries. NOTE 16: CONTROLLED ENTITIES Country of Percentage Owned (%) Controlled Entities Incorporation Australian Cobalt Ltd (formerly Meteore Metals Pty Ltd) Australia Longland Resources Ltd United Kingdom NOTE 17: PARENT COMPANY INFORMATION Assets Current assets Non-current assets Total Assets Liabilities Current liabilities Total liabilities Equity Issued capital Accumulated losses Reserves Option reserve Total reserves Financial performance Profit / (Loss) for the year Other comprehensive income Total comprehensive loss Contingent Liabilities and Commitments 2023 100 100 2023 $ 2022 100 100 2022 $ 554,232 4,811,198 36,101,547 28,700,712 36,655,779 33,511,910 74,607 74,607 119,239 119,239 43,658,621 39,980,010 (9,045,900) (8,226,489) 1,968,450 1,639,150 1,968,450 1,639,150 (819,421) (848,935) - - (819,421) (848,935) The Directors are not aware of any contingent liabilities or capital commitments as at 30 June 2023. Guarantees in respect of the debts of its subsidiaries The parent entity has provided a guarantee to Cartwright Drilling Inc. in relation to the drilling program undertaken in Greenland in 2022 by its subsidiary Longland Resources Ltd. There are no other parent entity guarantees in respect of the debts of its subsidiary at 30 June 2023. NOTE 18: COMMITMENTS a. Capital Expenditure Commitments Payable: — — not later than 12 months greater than12 months 45 Consolidated 2023 $ 2022 $ - - - - - - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 18: COMMITMENTS (CONTINUED) b. Exploration Expenditure Commitments In order to maintain current rights of tenure to exploration tenements, the company is required to perform minimum exploration work to meet the requirements specified by various governments. It is anticipated that expenditure commitments for the twelve months will be tenement rentals of $3,120 (2022: $20,000) and exploration expenditure of $415,752 (2022: $nil). NOTE 19: SHARE-BASED PAYMENTS All options granted are over ordinary shares in Conico Ltd, which confer a right of one ordinary share for every option held. When issued, the shares carry full dividend and voting rights. Share-based payments - Options 2023 2022 Outstanding at the beginning of the year Granted Exercised Lapsed Outstanding at year-end Exercisable at year-end Number of Options Number of Options Weighted Average Exercise Price $ Weighted Average Exercise Price $ 72,800,000 31,000,000 (2,500,000) 0.042 0.047 0.040 57,000,000 31,000,000 (15,200,000) 0.050 0.026 0.040 - - - - 101,300,000 0.044 72,800,000 0.042 101,300,000 0.044 72,800,000 0.042 The options outstanding at 30 June 2023 had a weighted average exercise price of $0.044 and a weighted average remaining contractual life of 1.96 years. For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: Grant Date Expiry Date Share Price at Grant Date Exercise Price Expected volatility Dividend yield Risk-free interest rate Fair value at grant date 10/08/2022 20/01/2024 16/12/2022 01/01/2026 26/04/2023 31/12/2026 $0.034 $0.008 $0.009 $0.07 $0.026 $0.026 137% 143% 151% - - - 1.85% 3.10% 3.60% $0.0146 $0.0033 $0.0070 The following options were exercised during the year ended 30 June 2023: Expiry Date Exercise Price Number of options 24/11/2023 $0.04 2,500,000 NOTE 20: CASH FLOW INFORMATION a. Reconciliation of Cash Flow from Operations with Loss after Income Tax Loss after income tax Non-cash flows in profit/(loss) Depreciation Options expense Changes in assets and liabilities, net of non-cash payments (Increase)/decrease in trade and term receivables Increase/(decrease) in trade payables and accruals* Cash flow used in operations * - Net of Exploration and Evaluation cash flows. 2023 $ 2022 $ (885,659) (940,166) 9,552 5,300 5,055 6,100 319,454 (87,211) (211,448) 198,242 (762,801) (817,980) 46 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 21: RELATED PARTY TRANSACTIONS Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions with related parties: Key Management Personnel Management fees and administration fees paid to Princebrook Pty Ltd, a company in which Mr GH Solomon and Mr DH Solomon have an interest. At 30 June 2023 $nil (2022: $12,000) was included in Trade and Other Payables owing to Princebrook Pty Ltd. Legal and professional fees and reimbursed expenses paid to Solomon Brothers, a firm of which Mr GH Solomon and Mr DH Solomon are partners. Corporate advisory fees paid to RM Corporate Finance Pty Ltd, a company in which Mr G T Le Page and Mr J B Richardson have an interest. Website development, media and marketing fees paid/payable to RM Corporate Finance Pty Ltd, a company in which Mr G Le Page and Mr J Richardson have an interest. Placement fees paid/payable to RM Corporate Finance Pty Ltd, a company in which Mr G Le Page and Mr J Richardson have an interest. Associated Companies 2023 $ 2022 $ 130,000 144,000 26,996 60,669 42,000 42,000 2,855 8,340 60,000 290,280 Reimbursement to Tasman Resources Ltd (which has a 10.8% interest in the Company) for employee costs on an hourly basis, in relation to Tasman staff utilised by the Company. - 605 NOTE 22: SEGMENT REPORTING The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining the allocation of resources. The following have been identified as individual segments: Greenland Conico holds a 100% in both the Ryberg and Mestersvig Projects in Greenland. The Ryberg Project that covers an area of 4,521km² containing the Sortekap gold prospect and the Miki Fjord & Togeda Cu-Ni-Co-PGE-Au magmatic sulphide prospects. The Mestersvig Project containing the historic Blyklippen Pb-Zn mine and Sortebjerg Pb-Zn prospect. Mt Thirsty JV Conico holds a 50% interest in the Mt Thirsty Cobalt Project, located 16km north-northwest of Norseman, Western Australia. The Project contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit that has the potential to emerge as a significant cobalt producer. In addition to the Co-Ni Oxide Deposit, the Project also hosts nickel sulphide (Ni-S) mineralisation. Unallocated Unallocated items comprise items that cannot be directly attributed to the Greenland Exploration or the Mt thirsty JV segments and corporate costs which includes those expenditures supporting the business during the period. The segment information for the reportable segments for the year ended 30 June 2023 is as follows 47 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 22: SEGMENT REPORTING (CONTINUED) Year ended 30 June 2023 Segment loss before tax Impairment of assets Capital expenditure additions Segment assets Segment liabilities Year ended 30 June 2022 Segment loss before tax Impairment of assets Capital expenditure additions Segment assets Segment liabilities Greenland Mt Thirsty JV Unallocated $ $ $ Total $ (885,659) (885,659) - - 7,126,418 19,472,815 (165,133) - - 6,426,443 13,337,359 (658,249) 17,631,632 1,117,418 (311,696) (74,607) - - 1,610,524 - - 79,426 - - - - - 8,736,942 38,221,865 (551,436) - 6,505,869 34,319,650 (1,109,734) (940,165) (940,165) 16,022,428 4,959,863 (332,246) (119,239) NOTE 23: CONTINGENT LIABILITIES AND CONTINGENT ASSETS Per note 13, the Group reversed a provision previously recognised on acquisition for a future royalty payment of $500,000 ($250,000 as applicable to Conico as 50% Joint Venture Partner) if and when the Mount Thirsty project commences production. The directors of Conico advise that Cartwright Drilling Inc (“Cartwright”), a drilling company incorporated in Newfoundland (Canada) that was engaged by Conico to undertake diamond drilling at the Ryberg and Mestersvig Projects over the 2022 Greenland field season, has commenced an arbitration in Newfoundland to resolve a dispute in respect to invoices received by Conico from Cartwright for the 2022 field season, which Conico has refused to pay. It is the opinion of the board of Conico that the performance of Cartwright was materially deficient in a number of key areas and not up to industry best practice and has caused loss to Conico through scheduled drilling not having been completed. The total amount of the invoices in dispute is C$1,419,203 (approximately A$1,575,315). Cartwright currently hold a bond of C$300,000 on behalf of Conico. In the arbitration, Conico will also seek to recover substantial damages from Cartwright. As of the date of this report, arbitration proceedings are continuing. The Directors are not aware of any other contingent assets or contingent liabilities as at 30 June 2023 (30 June 2022: Nil). NOTE 24: EVENTS AFTER THE REPORTING DATE No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. 48 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 NOTE 25: FINANCIAL INSTRUMENTS a. Financial Risk Exposures and Management The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. i. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group has minimal exposure to interest rate risk, the only asset / liability affected by changes in market interest rates is Cash and cash equivalents. ii. Liquidity Risk The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate funding is maintained. The Company’s operations require it to raise capital on an on- going basis to fund its planned exploration programs and to commercialise its tenement assets. If the Company does not raise capital in the short term, it can continue by reducing planned but not committed exploration expenditure until funding is available. All financial liabilities are expected to be settled within 6 months. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are invested in short-term bank deposits. iii. Foreign currency risk The Group is exposed to fluctuations in foreign currencies arising from the purchase of goods and services in currencies other than the companies’ functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. At 30 June 2023 the effect on the loss as a result of a 10% increase in the value of the Australian dollar, with all other variables remaining constant would be a decrease in loss by approximately $14,500 (2022: $10,000). Exploration expenditure relating to the Greenland project is largely in currencies other than the companies’ functional currency, changes in the foreign exchange rates will affect the cost of exploration on the Greenland project and may affect decisions regarding the quantum of exploration completed in any period. iv. Maturity of Financial liabilities The group holds no interest-bearing liabilities whereby the period extends longer than six months. Trade payables and executive held credit cards do not bear interest if paid within terms, where this is typically less than 30 days. (2022: $nil) b. Financial Instruments i. Net Fair Values The aggregate net fair values of the financial assets and financial liabilities, at the reporting date, are approximated by their carrying value. NOTE 26: COMPANY DETAILS The registered office of the company is: The principal place of business is: Conico Ltd Level 15, Conico Ltd Level 15, 197 St Georges Terrace 197 St Georges Terrace Perth Western Australia 6000 Perth Western Australia 6000 49 DIRECTORS’ DECLARATION In the opinion of the directors of Conico Ltd (the “Company”): a. the financial statements and notes set out on pages 33 to 49 and the Remuneration disclosures that are contained in pages 28 to 29 of the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001, including: (i) (ii) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance, for the financial year ended on that date; and complying with Australian Accounting Standards Interpretations) and the Corporations Regulations 2001; and (including the Australian Accounting (iii) complying with International Financial Reporting Standards as disclosed in Note 1; and b. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Non-Executive Chairman and Chief Financial Officer for the financial year ended 30 June 2023. This declaration is made in accordance with a resolution of the Board of Directors. Gregory H Solomon Chairman Dated this 21st day of September 2023 50 Independent Auditor’s Report to the Members of Conico Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Conico Limited (“the Company”) and its subsidiaries (“the Group”)), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty relating to going concern We draw attention to Note 1 in the financial report, which indicates that the Company incurred a net loss of $885,659 during the year ended 30 June 2023 and had net current assets of $274,388. As stated in Note 1, these events or conditions, along with other matters as set forth in the note, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 51 Key audit matter How our audit addressed the key audit matter Capitalisation of exploration and evaluation assets Refer to Note 10 (Exploration and evaluation assets) Our procedures focused on evaluating management’s assessment of the exploration and evaluation asset’s carrying value. These procedures included, amongst others: and As at 30 June 2023 the carrying value of Exploration assets was $36,854,447 (2022: $28,939,207). The Group’s accounting policy in respect of exploration and evaluation assets is outlined in Note 1e. evaluation This is a key audit matter due to the fact that significant judgement is applied in determining and whether the evaluation assets recognition criteria in terms of AASB 6 Exploration for and Evaluation of Mineral Resources. exploration to meet capitalised continue the • verifying whether the rights to tenure of the area of interest remained current at balance date; • obtaining evidence of the future intention for the area of interest; and • obtaining an understanding of the status of ongoing exploration programs for the area of interest. We also assessed the appropriateness of the accounting treatment and disclosure in terms of AASB 6. Other Information The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard. Directors’ responsibility for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 52 Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at The Australian Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 28 to 29 of the Directors’ Report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Conico Limited for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Nexia Perth Audit Services Pty Ltd M. Janse Van Nieuwenhuizen Director Perth 21 September 2023 53 ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES 1. Shareholding as at 19 September 2023 a. Distribution of Shareholders Category (size of holding) 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – and over Number of Shareholders 78 58 151 1,368 1,346 3,001 b. The number of shareholders that held in less than marketable parcels at 19 September 2023 was 1,352. c. The names and relevant interests of the substantial shareholders listed in the holding company’s register as at 19 September 2023 are: Shareholder Tasman Resources Ltd d. Voting Rights Number of Ordinary shares 132,403,387 Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands. e 20 Largest Shareholders — Ordinary Shares Name 1. 2. BNP Paribas Nominees Pty Ltd Acf Clearstream Tasman Resources Ltd 3. March Bells Pty Ltd 4. BNP Paribas Nominees Pty Ltd 5. Arkenstone Pty Ltd 6. Mr Thomas Abraham-James 7. Mr Serdar Semirli 8. HSBC Custody Nominees (Australia) Limited 9. Citicorp Nominees Pty Ltd 10. Mr Nai Pei Li 11. Custodial Services Ltd 12. Bnp Paribas Nominees Pty Ltd 13. Mr Anthony Ford 14. Apostman Superannuation Pty Ltd 15. Mr Guy + Mrs Le Page 16. Mr David Kenley 17. J & J Bandy Nominees Pty Ltd 18. Tadea Pty Ltd 19. Mr Peter Richards 20. Mr Brian Berude Number Shares Held % of Issued Capital 168,650,723 132,403,387 49,018,861 41,358,761 38,887,213 28,843,795 26,009,499 24,756,292 23,959,533 21,000,000 18,050,000 16,334,547 14,000,027 13,333,334 13,243,118 11,740,000 11,500,000 10,900,000 10,180,000 9,366,800 10.74% 8.43% 3.12% 2.63% 2.48% 1.84% 1.66% 1.58% 1.53% 1.34% 1.15% 1.04% 0.89% 0.85% 0.84% 0.75% 0.73% 0.69% 0.65% 0.60% 683,535,890 43,53% 54 e 20 Largest holders — CNJO Options Name 1. M1nt Property Pty Ltd 2. Tasman Resources Ltd 3. Mr Constandine Koundouris 4. 5. Joarch Jagia Investments Pty Ltd Paul Thomson Furniture Pty Ltd 6. Mr Anthony Ford 7. Mr Gazi Habib 8. Mr Matthew Torenius & Mr Tuomo Torenius 9. March Bells Pty Ltd 10. Gazump Resources Pty Ltd 11. Hardy Road Investments Pty Ltd 12. Peloton Capital Pty Ltd 13. Peloton Capital Pty Ltd 14. Arkenstone Pty Ltd 15. Lawrence Crowe Consulting Pty Ltd 16. Mr David Moses 17. Ms Catherine Zanevra 18. Baowin Investments Pty Ltd 19. BNP Paribas Nominees Pty Ltd ACF Clearstream 20. Mr Sean Vereker Shepperson Number Shares Held % of Issued Capital 29,493,067 16,550,424 14,335,780 9,500,000 9,039,906 8,700,027 7,500,000 6,300,000 6,127,358 5,756,853 5,500,000 5,000,000 5,000,000 4,860,902 3,000,000 3,000,000 2,750,000 2,662,222 2,334,303 2,267,962 10.49% 5.89% 5.10% 3.38% 3.22% 3.09% 2.67% 2.24% 2.18% 2.05% 1.96% 1.78% 1.78% 1.73% 1.07% 1.07% 0.98% 0.95% 0.83% 0.81% 149,678,804 53.24% 2. Unquoted Securities – Options as at 19 September 2023 Holder Name Date of Expiry Exercise Price Number on issue Various Various Various Various Various Various T Sant J Scoringe 21 September 2023 $0.022 24 November 2023 15 January 2024 20 January 2024 30 September 2024 30 November 2024 3 May 2025 1 January 2026 $0.04 $0.04 $0.07 $0.04 $0.10 $0.016 $0.025 1,000,000 6,000,000 2,300,000 75,496,307 10,000,000 33,500,000 1,000,000 1,000,000 130,296,307 Number of holders 2 6 2 101 2 77 1 1 191 55 TENEMENT SCHEDULE Number Interest % Location E63/1790 P63/2045 E63/1267 R63/4 G(A)63/93 M(A)63/669 M(A)63/670 MEL 2017/06 MEL-S 2019/38 MEL 2020/64 MPL 2019/39 MEL-S 2021/24 50 50 50 50 50 50 50 100 100 100 100 100 WA WA WA WA WA WA WA Greenland Greenland Greenland Greenland Greenland 56 Level 15, 197 St Georges Terrace Perth, Western Australia 6000 Telephone: +81 8 9282 5889 Email: mailroom@conico.com.au Website: www.conico.com.au

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