Magnolia Bostad
Annual Report 2024

Plain-text annual report

Magmatic Resources Limited ABN 32 615 598 322 Annual report for the year ended 30 June 2024 Contents Corporate Information 3 Review of operations 4 Directors’ report 16 Auditor’s independence declaration 27 Corporate governance statement 28 Consolidated statement of profit or loss and other comprehensive income 29 Consolidated statement of financial position 30 Consolidated statement of changes in equity 31 Consolidated statement of cash flows 32 Notes to the consolidated financial statements 33 Consolidated entity disclosure statement 52 Directors’ declaration 53 Independent auditor’s report to the members 54 ASX additional information 58 Magmatic Resources Limited ABN 32 615 598 322 3 Corporate Information Directors David J Richardson – Executive Chairman Adam R McKinnon – Managing Director David W Berrie – Non-Executive Director Company Secretary Andrea S Betti David W Berrie Registered Office Principal Place of Business Level 2, 22 Mount Street Perth WA 6000 14 Edward Street Orange NSW 2800 Telephone: +61 8 6188 8181 Email: info@magmaticresources.com Website: www.magmaticresources.com Share Registry Computershare Investor Services Pty Ltd Level 17, 221 St George’s Terrace Perth WA 6000 Telephone: 1300 850505 Telephone: +61 8 9415 4000 Auditors BDO Audit Pty Ltd Level 9 Mia Yellagonga Tower 2 5 Spring Street Perth WA 6000 Solicitors HopgoodGanim Level 8, 1 Eagle Street Brisbane QLD 4000 ASX Code Magmatic Resources Limited is listed on the Australian Securities Exchange Shares: MAG Magmatic Resources Limited ABN 32 615 598 322 4 Review of Operations Magmatic Resources Limited (“Magmatic” or the “Company”) (ASX:MAG) is a New South Wales‐focused  copper and gold explorer that listed in May 2017, following the acquisition from Gold Fields Limited of an  advanced portfolio in the East Lachlan region of New South Wales (Figure 1).     Figure 1.  Location of Magmatic’s East Lachlan Projects (Resources from Phillips, 2017; CMOC, 2023; Evolution, 2023;  Newcrest 2023; Alkane 2023; 2024)    Exploration in the East Lachlan Region   The Company has three 100%‐owned projects comprising six licences in the East Lachlan region of New  South Wales – namely Myall, Wellington North and Parkes (Figure 1).    The East Lachlan region is a globally significant gold‐copper province with an endowment of more than 80  million ounces of gold and 13 million tonnes of copper (Phillips, 2017). It is most famous for Newmont’s  world  class  gold‐copper  porphyry  cluster  at  the  Cadia  Valley,  where  the  Cadia  East  Mine  represents  Australia’s  largest  producer.  In  addition,  the  Northparkes  copper‐gold  porphyry  deposits  (China  Evolution/Sumitomo)  and  Cowal  gold  deposit  (Evolution  Mining)  represent  significant  long‐life  mining  operations.   Magmatic Resources Limited ABN 32 615 598 322 5 The  Company’s  projects  represent  strategic  holdings  and  target  portfolios  adjacent  to  major  mining  operations and recent discoveries.   Ongoing  exploration  activity,  including  recent  high  impact  diamond  drilling,  indicates  strong  similarities  between the Company’s Myall Project and the Northparkes Mining District, located 50 kilometres to the  south. The definition of a 14.7 million ounce‐equivalent Resource for the Boda/Kaiser gold‐copper discovery  (ASX ALK 29 April 2024) has highlighted the value of Magmatic’s dominant surrounding tenure position and  target portfolio at its Wellington North Project. The Company also holds a strategic position in the Parkes  Fault Zone (Parkes Project), immediately south from Alkane’s Tomingley Gold Operations and recent Roswell  and San Antonio discoveries.    Myall Project (Copper‐Gold)   Magmatic Resources Limited 100% (FMG Resources Farming‐in)  The Myall Project covers the northern extension of the Junee ‐ Narromine Volcanic Belt, located ~50km  north and along strike from the Northparkes copper‐gold Mining District (Evolution/Sumitomo, Figure 2).     Figure 2. Location of the Myall Project showing selected tenement holdings from other major explorers and miners in the  region, along with road and rail infrastructure and major towns (ASX MAG 26 July 2023).  Magmatic Resources Limited ABN 32 615 598 322 6 Following extensive diamond drilling conducted throughout the 2022‐2023 financial year, a maiden Inferred  Mineral Resource Estimate (MRE) for the Corvette and Kingswood deposits was announced early in the  period (ASX MAG 11 July 2023). Modelling for the MRE was restricted to two zones of higher density drilling  associated with the Corvette and Kingswood deposits and contained total Inferred Resources of 110Mt at  0.27% Cu, 0.07g/t Au, 0.8g/t Ag & 10ppm Mo. The Inferred Resources have a contained metal content of  293kt copper, 237koz gold & 2.8Moz silver, equating to 354Kt copper metal‐equivalent.   In the December quarter the Company completed a follow‐up drilling program designed to test six key target  areas surrounding the Corvette and Kingswood Mineral Resource Estimate (ASX MAG 6 December 2023). The  main target for the program was shallow mineralisation immediately below the transported cover, with the  areas of interest contained within an extensive zone of high‐tenor basement copper anomalism.      Eight holes were completed in the program for 1,956 metres across the key target areas (Figure 3). These  drill holes ranged in depth between 233 and 258 metres, with total core lengths averaging slightly over 100  metres for each hole.  Figure 3. Level plan of the Corvette and Kingswood area showing drilling in the 200 metres immediately below the cover sequence.  CuEq grades are shown downhole, with the recent drilling and results labelled (ASX MAG 6 December 2023).       Magmatic Resources Limited ABN 32 615 598 322 7 Shallow  copper  mineralisation  was  intersected  at  all  six  targets  tested,  with  strongest  results  from  a  previously untested area approximately 100 metres to the west of Corvette (Figures 3 & 4):     23MYDD434  18.0 metres at 0.80% CuEq, 0.76% Cu, 0.03g/t Au, 1.9g/t Ag & 51ppm Mo from 169m  incl. 5.8 metres at 2.13% CuEq, 1.97% Cu, 0.04g/t Au, 4.6g/t Ag & 179ppm Mo from 169.9m    Figure 4. Breccia‐hosted copper mineralisation west of the Corvette deposit, comprising 5.8 metres at 1.97% Cu & 179ppm Mo,  photographed from ~170 metres down hole in 23MYDD434 (ASX MAG 6 December 2023).  Highly encouraging copper/molybdenum zones were also encountered in all five of the other target areas  tested,  with  multiple  holes  ending  in  mineralisation  (full  details,  including  details  of  the  Cu‐equivalent  parameters, can be found in ASX MAG 6 December 2023):    23MYDD428  101.6 metres at 0.20% CuEq, 0.16% Cu & 0.04g/t Au from 131.7m (to end of hole)  incl. 5.8 metres at 0.41% CuEq, 0.28% Cu & 0.16g/t Au from 131.7m   23MYDD430  41.3 metres at 0.21% CuEq, 0.19% Cu, 0.03g/t Au & 23ppm Mo from 213.5m (to end of hole)  incl. 4.0 metres at 0.41% CuEq, 0.37% Cu, 0.03g/t Au & 139ppm Mo from 242m  23MYDD431  15.1 metres at 0.29% CuEq, 0.26% Cu & 0.03g/t Au from 218.3m (to end of hole)  incl. 5.1 metres at 0.49% CuEq, 0.43% Cu & 0.05g/t Au from 220m  Following  this  drilling  program  the  Company  released  a  revised  geological  model  that  highlighted  the  exceptional untested copper potential for the Corvette and Kingswood system (ASX MAG 23 January 2024).  The revised interpretation showed Corvette is predominantly associated with a moderate east‐dipping and  north to north‐northwest striking breccia zones at the contact of an earlier monzonite body (Figure 5).  The modelling explained the results seen in previous drilling at Corvette and for the first time predicted the  strike, dip and approximate true‐width of the system. Due to the alignment of Magmatic and previous drill  holes, very little of the extensive Corvette target zone has been tested and is almost completed unexplored  along strike in both directions (Figure 6). The revised model identified follow‐up targets and suggested the  potential for rapid growth of the mineralised system with limited additional exploration.  Magmatic Resources Limited ABN 32 615 598 322 8 Figure 5. 400 metre cross section through the Corvette and Kingswood drilling (looking north) showing CuEq grades down hole along  with modelled geological contacts (left), and a schematic cross section for the same section showing an outline of the maiden Mineral  Resource Estimate (right) (ASX MAG 23 January 2024).    Figure 6. Schematic level plans at various level of the Corvette system highlighting the very limited portion of the Corvette target  zone that has actually been tested by diamond drilling, with the untested portion outlined in red (after ASX MAG 23 January 2024).    Late  in  the  March  Quarter  the  Company  announced  it  had  entered  into  a  Farm‐in  and  Joint  Venture  Agreement (FJV) over the Myall Project with FMG Resources Pty Ltd (Fortescue), a wholly‐owned subsidiary  of Fortescue Limited (ASX MAG 8 March 2024). THE FJV will see Fortescue spend up to $14M over six years  to earn up to 75% joint venture interest in the project. Fortescue may earn an initial 51% interest by  incurring  $6M  in  expenditure  in  the  initial  earn‐in  period  of  up  to  four  years,  including  a  minimum  expenditure of $3M and minimum 3,000 metres of drilling in the first two years. Magmatic will be the  operator during the initial earn‐in period of up to four years and is entitles to a 10% operator’s fee.   Following  the  execution  of  the  FJV,  an  Exploration  Committee  was  formed  between  Magmatic  and  Fortescue to direct exploration, with agreement reached for a two‐phase work program for the 2024/2025  Financial Year (ASX MAG 11 June 2024). Phase 1 of the program comprises a historic core and drill chip re‐ assay programme to provide expanded coverage of multi‐element geochemical and hyperspectral data not  previously  collected.  The  resampling program  focusses  on  Corvette/Kingswood  in  the  west and  at  the  Monaro Prospect in the east. The second phase is set to comprise six diamond holes of 400‐500m depth in  the greater Corvette Kingwood region (Figure 7), with most on‐ground exploration work (including drilling)  expected to be completed by the end of 2024.  Magmatic Resources Limited ABN 32 615 598 322 9   Figure 7. Plan of the Myall project area showing basement copper anomalism above 250ppm (green), the proposed resampling  locations for diamond core (pink) and air core chips (light blue), and the greater Corvette/Kingswood region to be targeted with new  diamond drill holes (ASX MAG 11 June 2024).  Wellington North Project (Gold‐Copper)   Magmatic Resources Limited 100%   Magmatic’s 100%‐owned Wellington North Project covers the northern extension of the Molong Volcanic  Belt, located north of Australia’s largest gold producer at Cadia (Newmont) and immediately adjacent to  Alkane’s recent 14.7Moz gold‐equivalent Boda and Kaiser porphyry gold‐copper discovery (ASX ALK 29 April  2024).  The Wellington North Project includes the historic Bodangora Gold Field, where 230,000 ounces at ~26g/t Au  were produced between 1869‐1917 (ASX MAG 17 May 2017) alongside an extensive portfolio of Boda‐style  porphyry gold‐copper and Bodangora‐style high grade gold targets (Figure 8). Encouraging porphyry‐style  mineralisation has been intercepted in drilling at multiple locations at Wellington North, including:  Magmatic Resources Limited ABN 32 615 598 322 10  71m at 0.43% Cu, 0.30g/t Au & 59ppm Mo from surface at Rosehill (ASX MAG 17 May 2017)   41m at 0.25 g/t Au & 0.11% Cu at Lady Ilse (ASX MAG 10 September 2020)   13m at 0.72 g/t Au & 0.36% Cu at Lady Ilse (ASX MAG 10 September 2020)   45m at 0.44g/t Au at Lady Ilse (ASX MAG 24 December 2020)    Figure 8. Aeromagnetic imagery (RTP) showing the Magmatic’s target portfolio in the Wellington North Project area and highlighting  the proximity to the 14.8Moz AuEq Boda‐Kaiser discovery (ASX ALK 27 February 2023).    Exploration activities at Wellington accelerated towards the end of the period across multiple target areas.  A soil geochemistry program was completed at the Boda Southwest Prospect (Figure 9), located immediately  adjacent to the Boda 4 prospect area flagged by Alkane Resources (ASX ALK 14 December 2023 & 21 June  2024). A total of 232 samples were taken as a part of this program, based on a nominal 50 x 100 metre grid.   The  assay  results  for  the  program  highlighted  a  coherent,  north‐northwest  trending  zone  of  copper  anomalism (>100ppm) with variable gold anomalism (>10ppb) focused in the west (ASX MAG 5 July 2024).  The southwestern area of the sampling grid was particularly anomalous, with gold reaching maximum values  of 0.92g/t in sample WNSL0964 and copper reaching 201ppm in sample WNSL0927 (Figure 9).   Magmatic Resources Limited ABN 32 615 598 322 11 Figure 9. Plan of the Boda Southwest Prospect showing interpreted copper and gold trends from Magmatic’s soil sampling program,  along with a reported (ASX ALK 21 June 2024) rock chip sample at Alkane’s Boda 4 Prospect (after ASX MAG 5 July 2024).  An air core program was also completed in a sparsely explored area north and northwest of the Lady Ilse  Prospect (ASX MAG 24 July 2024), comprising 64 air core holes for 598 metres (Figures 8 & 10). The holes  were designed to test the geochemistry of basement through the shallow cover at the prospect, with holes  ranging from 1 to 30 metres in depth and averaging just over 9 metres in depth. Encouraging gold‐copper  mineralisation was intersected in multiple holes from this program, including:  24WNAC0820    17 metres at 0.37g/t Au & 0.10% Cu from 6m to end of hole  incl. 6 metres at 0.80g/t Au & 0.15% Cu from 12m  24WNAC0856    3 metres at 0.47g/t Au from 0m to end of hole  24WNAC0851    3 metres at 0.44g/t Au from 6m   24WNAC0826    3 metres at 0.42g/t Au from 0m  24WNAC0822    6 metres at 0.20g/t Au from 12m  Magmatic Resources Limited ABN 32 615 598 322 12   Figure 10. Plan of the Lady Ilse Prospect showing gold and copper anomalism defined by current and previous air core drilling, along  with selected results from the current program (bold) and from previous RC and diamond drilling (see ASX MAG 24 July 2024 for full  details).   The results from 24WNAC0820 were particularly significant, representing the best copper and second‐best  gold interval returned from nearly 150 air core holes drilled in the Lady Ilse region. The mineralisation in this  hole remains untested to the west (Figure 10), with ground conditions restricting access to this area during  the recent program.  The latest work at Lady Ilse has nearly doubled the footprint of the system, extending contiguous gold and  copper anomalism to over 1,200 metres from south to north. Elevated gold and copper values were also  intersected in the northernmost line of air core holes (Figure 10), with the trend open to the north.   Further to the west at on the Wellington North Project, inclement weather through mid‐July delayed the  planned commencement of an RC drilling program at Rose Hill (Figure 8), with the program still scheduled  be completed as when ground conditionals allow access. Rose Hill hosts intrusion‐related mineralisation  including a previous intersection of 71m at 0.43% Cu, 0.30g/t Au & 57ppm Mo from surface (ASX Mag 17 May  2017).     Magmatic Resources Limited ABN 32 615 598 322 13 Parkes Project (Gold)  Magmatic Resources Limited 100%  The Parkes Project comprises two exploration licences located within the Parkes Fault Zone (Figure 11),  approximately 30 kilometres south from Alkane’s Tomingley Gold Operations and recently defined Resources  at Roswell and San Antonio (ASX ALK 13 September 2023).  Several existing gold intersections are equivalent  to early‐stage exploration results at Alkane’s Tomingley deposits, including:   16m at 1.22 g/t Au from 13m (MM33) McGregors (ASX MAG 17 May 2017)   18m at 0.72 g/t Au from 33m (MM33) McGregors (ASX MAG 17 May 2017)   26m at 0.55 g/t Au from 34m (MM32) McGregors (ASX MAG 17 May 2017)   22m at 0.79g/t Au from 45m (S1) Stockmans (ASX MAG 17 May 2017   12m at 1.42g/t Au from 7m (S2) Stockmans (ASX MAG 17 May 2017)    Figure 11. Plan showing the location of Magmatic’s 100%‐owned Parkes Project, along with key prospects and nearby mines over  aeromagnetic imagery (RTP).    Magmatic Resources Limited ABN 32 615 598 322 14    Late in the period work began on the Black Ridge prospect at the Parkes Project (ASX MAG 5 July 2024),  including re‐establishment of Landholder Access Agreements and initial mapping and sampling. Significant  work has continued at Black Ridge into the current Financial Year, with a six‐kilometre zone of copper‐gold‐ silver anomalism established parallel to the Parkes Thrust (ASX MAG 1 August 2024). Results from rock chip  sampling of small scale historic workings have shown grades of up to 6.5% copper, with multiple other  elevated copper results returned over a broad area (Figure 12).    Figure 12. Plan of the Black Ridge copper trend over satellite imagery showing pXRF copper‐in‐soil anomalism (green)  and proposed IP lines for a survey at the prospect. Photographs of selected rock samples from various points down the  trend are also shown (ASX MAG 1 August 2024).        Magmatic Resources Limited ABN 32 615 598 322 15 References   Alkane, 2023. Reserve and Resource Statement 2023, ASX release dated 13 September 2023.  CMOC, 2023. Northparkes Mining and Technical Information. http://www.northparkes.com/news/  Evolution, 2023. Annual Mineral Resources & Ore Reserves Statement, 16 February 2023.  Heithersay P.S. and Walshe J.L., 1995. Endeavour 26 North: A Porphyry Copper‐Gold Deposit in the Late  Ordovician, Shoshonitic Goonumbla Volcanic Complex, New South Wales, Economic Geology v90.  Hoye, J., 2022. Fluid‐rock interactions to failed over‐pressurisation in intrusion‐related wallrock porphyry  systems; examples from the Northparkes district, NSW. Discoveries in the Tasminides Conference, 11 May  2022. https://smedg.org.au/wp‐content/uploads/2022/05/PRES_MW_Hoye_220511.  Newcrest, 2023. Annual Mineral Resources & Ore Reserves Statement, 11 September 2023.  Phillips,  G.N.  (Ed),  2017.  Australian  Ore  Deposits,  The  Australasian  Institute  of  Mining  and  Metallurgy:  Melbourne.    Competent Persons Statement   Compilation of exploration and drilling data, along with assay validation and geological interpretations for  the Mineral Resource Estimate at Myall was coordinated by Adam McKinnon, BSc (Hons), PhD, MAusIMM,  who  is  Managing  Director  and  a  full‐time  employee  of  Magmatic  Resources  Limited.  Dr  McKinnon  has  sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration  and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition  of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr  McKinnon consents to the inclusion in this release of the matters based on his information in the form and  context in which it appears. Additionally, Dr McKinnon confirms that the entity is not aware of any new  information or data that materially affects the information contained in the ASX releases referred to in this  report.    The information in this ASX release that relates to the Mineral Resource Estimate is based on information  compiled by Arnold van der Heyden, a Member and Chartered Professional (Geology) of the AusIMM. Mr van  der Heyden is a full‐time employee of H&S Consultants Pty Ltd. Mr van der Heyden has sufficient experience  that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being  undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for  Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr van der Heyden consents to the  inclusion in this report of the matters based on his information in the form and context in which it appears.    Magmatic Resources Limited ABN 32 615 598 322 16 Directors’ Report Your directors present their annual financial report on the consolidated entity (referred to hereafter as the “Group”) consisting of Magmatic Resources Limited (the “Company” or “parent entity”) and its wholly owned subsidiaries Modeling Resources Pty Ltd (“Modeling”) and Landslide Investments Pty Ltd (“Landslide”). In order to comply with the provisions of the Corporations Act, the directors report as follows: Directors The names of the directors of the Company during or since the end of the year are noted below. Directors were in office for the entire year unless otherwise stated: David J Richardson – Executive Chairman Adam R McKinnon – Managing Director David W Berrie – Non-Executive Director Andrew J Viner – Non-Executive Director (resigned 9 January 2024) Company Secretary Andrea S Betti David W Berrie Principal activities The principal activity of the Group during the financial year was mineral exploration. Dividends No dividend has been paid or declared since the start of the financial year and the directors do not recommend the payment of a dividend in respect of the financial year. Review of operations Information on the operations of the Group is set out in the Review of Operations report on pages 4 to 15 of this Annual Report. Financial review The loss for the Group after providing for income tax for the financial year amounted to $3,381,360 (2023: $7,491,491). As at 30 June 2024, the Group had net assets of $9,302,361 (30 June 2023: $4,341,017), including cash and cash equivalents of $6,335,389 (30 June 2023: $2,855,309). Significant changes in the state of affairs The Group received $3,709,210 from FMG Resources Pty Ltd (Fortescue) who subscribed to 75,946,151 new shares issued pursuant to a share placement (ASX:MAG 8 March 2024). . The Group received $3,010,000 from institutional and sophisticated investors who subscribed for 35,411,765 new shares issued pursuant to a share placement (ASX:MAG 20 May 2024). The Company’s retained 2.37% shareholding in Australian Gold and Copper Ltd was revalued up by $1,336,112 at 30 June 2024 (2023: revalued down by $95,841), based on the AGC closing market price of $0.290 at 30 June 2024, up from its 30 June 2023 price of $0.053. Matters subsequent to the end of the financial year There has not been any matter or circumstance that has arisen after balance date that has 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 periods. Likely developments and expected results Additional comments on expected results of certain operations of the Group are included in the Review of Operations. Environmental legislation The Group is subject to significant environmental legal regulations in respect to its exploration and evaluation activities. The group is compliant with the NGER Act 2007. There have been no known breaches of these regulations and principles. Magmatic Resources Limited ABN 32 615 598 322 17 During the financial year the Company has paid premiums in respect of insuring directors and officers of the Company against liabilities incurred as directors or officers. The amount paid is confidential under the terms of the terms of the insurance policy. The Company has no insurance policy in place that indemnifies the Company’s auditors. Information on directors David Richardson B. Comm MBA Executive Chairman Experience and expertise Mr David Richardson has extensive international corporate experience including 15 years in Japan in Asia Pacific regional director positions with organisations such as Pacific Dunlop Ltd and Amcor Ltd, expertise includes venture capital and finance. Mr Richardson founded Magmatic Resources in 2014, listing the Company on the ASX in 2017 and is Executive Chairman of the Company. Mr Richardson holds a Masters of Business Administration from the University of Southern California (USC), Los Angeles. Mr Richardson is not considered to be independent due to his executive role as Executive Chairman of the Company and his interest in the securities of the Company. Other current directorships: Australian Gold and Copper Ltd Former directorships in the last 3 years: Nil Special responsibilities: Executive Chairman and member of the Audit and Risk Committee Interests in shares and options at the date of this report: 47,442,571 ordinary shares (indirectly held) and 6,000,000 options (indirectly held). Adam McKinnon BSc (Hons), PhD, MAusIMM, MRACI (CCHEM) Managing Director (appointed 15 March 2022) Experience and expertise Dr McKinnon is a mining and geoscience professional with 16 years industry and academic experience. Before joining Magmatic Resources he was General Manager – Exploration and Business Development at Aurelia Metals Limited, where he was involved in a number of significant discoveries including the high grade Federation deposit south of Nymagee, NSW. Dr McKinnon also led several highly successful exploration programs whilst with KBL Mining Limited, including the discovery of the high grade Pearse gold-silver deposit near the Mineral Hill Mine. Dr McKinnon holds a PhD in mineralogy and geochemistry from Western Sydney University, is a Chartered Chemist with the Royal Australian Chemical Institute (RACI) and a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Dr McKinnon is not considered to be independent due to his executive role as Managing Director of the Company. Other Current Directorships: Australian Gold and Copper Ltd (appointed 12 August 2022) Former directorships in the last 3 years: Nil Special Responsibilities: Managing Director Interests in shares and options at the date of this report: 1,135,680 ordinary shares (directly held) and 10,000,000 options (indirectly held) David Berrie LLB Non-Executive Director (appointed 28 October 2016) Company Secretary (appointed 01 June 2019) Experience and expertise Mr. David Berrie has over 30 years’ experience in the mining industry. Mr Berrie worked as a solicitor in the mining team at Clayton Utz before joining the international mining house Western Mining Corporation in 1987 with much of that time spent in the exploration division before transitioning over to BHP Billiton. Mr Berrie has extensive public company experience. Mr Berrie has a Bachelor of Laws and a Bachelor of Juris Prudence from the University of Western Australia. Other current directorships: Nil Former directorships in the last 3 years: Nil Special responsibilities: Joint Company Secretary and member of the Audit and Risk Committee Interests in shares and options at the date of this report: 14,029,044 ordinary shares (indirectly held) and 3,000,000 options (indirectly held). Magmatic Resources Limited ABN 32 615 598 322 18 Andrew Viner BSc (Geology) Non-Executive Director (appointed 17 December 2021, resigned 9 January 2024) Experience and Expertise Mr Viner is a geologist with more than 37 years’ experience in multi commodity mining and mineral exploration in Australia, southeast and central Asia and South America. He has been an Executive and Managing Director of ASX listed Companies since 2002. Andy has a BSc in Geology undertaken at Curtin University in Western Australia. He is a member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Company Directors. Other Directorships: Nil Former Directorships in the last 3 years: Strickland Metals Limited (appointed 21 June 2011, resigned 1 April 2021) Special Responsibilities: Member of the Audit and Risk Committee Interests in shares and options at the date of this report: 543,000 ordinary shares (533,000 indirectly held and 10,000 directly held). Meetings of directors During the financial year there were six formal directors’ meetings. All other matters that required formal Board resolutions were dealt with via written circular resolutions. In addition, the directors met on an informal basis at regular intervals during the financial year to discuss the Group’s affairs. The Company has an Audit and Risk Committee. The directors have determined that the Company is not of a sufficient size to merit the establishment of any other committees of the Board, and therefore duties ordinarily assigned to committees other than the Audit and Risk Committee are carried out by the full Board. The number of meetings of the Company’s board of directors attended by each director were: Directors’ meetings entitled to attend Directors’ meetings attended Audit and Risk Committee Meeting entitled to attend Audit and Risk Committee Meeting attended D Richardson 6 6 2 2 A McKinnon 6 6 2 2 D Berrie 6 6 2 2 A Viner 3 2 - - Shares under option Outstanding share options at the date of this report are as follows: Grant date Date of expiry Exercise price Number of options 27 October 2021 31 October 2024 $0.1500 1,250,000 29 November 2021 31 December 2024 $0.1452 4,050,000 29 November 2021 31 December 2024 $0.1936 1,950,000 15 March 2022 31 May 2025 $0.1002 10,000,000 25 November 2022 31 December 2025 $0.1440 5,500,000 24 November 2023 8 December 2026 $0.0920 1,000,000 4 December 2023 8 December 2026 $0.0920 1,250,000 Magmatic Resources Limited ABN 32 615 598 322 19 Material Business Risks The Group makes every effort to identify materials risks and to manage these effectively. This section does not attempt to provide an exhaustive list of risks faced by the Group or by investors in the Group, nor are they in order of significance. Actual events may be different to those described. The Board aims to manage these risks by carefully planning its activities and implementing risk control measures. Some of the risks are, however, highly unpredictable and the extent to which the Board can effectively manage them is limited. a) Tenure and access risk Applications While the Company does not anticipate there to be any issues with the grant of its tenement applications, there can be no assurance that the applications (or any future applications) will be granted. While the Company considers the risk to be low, there can also be no assurance that when the relevant tenement is granted, it will be granted in its entirety. Some of the tenement areas applied for may be excluded. Renewal Mining and exploration tenements are subject to periodic renewal. The renewal of the term of granted tenements is subject to the discretion of the relevant authority. Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements. The imposition of new conditions or the inability to meet those conditions may adversely affect the operations, financial position and/or performance of the Company. Access A number of the tenements overlap certain third-party interests that may limit the Company's ability to conduct exploration and mining activities, including private land, Crown Reserves, areas on which native title is yet to be determined and other forms of tenure for railways, pipelines, renewable energy infrastructure and similar third party interests. Where the tenement overlaps private land, exploration and mining activity on the tenement may require authorisation or consent from the owners of that land. The Company is required to enter into land access agreements to undertake its proposed exploration program on the tenements and such land access agreements are entered into prior to exploration activities commencing. The Company intends to carry out heritage clearance surveys before implementing its proposed exploration program if required to do so. The Company's current proposed exploration program is not impacted by the known sites of registered aboriginal heritage significance. b) Exploration Risk Potential investors should understand that mineral exploration and development are high-risk undertakings. There can be no assurance that exploration of the Project, or any other tenements that may be acquired in the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. The success of the Company will also depend upon the Company having access to sufficient development capital, being able to maintain title to its projects and obtaining all required approvals for its activities. In the event that exploration programmes prove to be unsuccessful, this could lead to a diminution in the value of the Tenements, a reduction in the cash reserves of the Company and possible relinquishment of its projects. c) Climate Change The operations and activities of the Company are subject to changes to local or international compliance regulations related to climate change mitigation efforts, specific taxation or penalties for carbon emissions or environmental damage and other possible restraints on industry that may further impact the Company. While the Company will endeavour to manage these risks and limit any consequential impacts, there can be no guarantee that the Company will not be impacted by these occurrences. Magmatic Resources Limited ABN 32 615 598 322 20 Climate change may also cause certain physical and environmental risks that cannot be predicted by the Company, including events such as increased severity of weather patterns, incidence of extreme weather events and longer-term physical risks such as shifting climate patterns. All these risks associated with climate change may significantly change the industry in which the Company operates. d) Reliance on Key Personnel The Company's future depends, in part, on its ability to attract and retain key personnel. It may not be able to hire and retain such personnel at compensation levels consistent with its existing compensation and salary structure. Its future also depends on the continued contributions of its key management and technical personnel, the loss of whose services would be difficult to replace. In addition, the inability to continue to attract appropriately qualified personnel could have a material adverse effect on the Company's business. e) Environmental The operations and proposed activities of the Company are subject to Australian laws and regulations concerning the environment. As with most exploration projects and mining operations, the Company's activities are expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. It is the Company's intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws. The disposal of mining and process waste and mine water discharge are under constant legislative scrutiny and regulation. There is a risk that environmental laws and regulations become more onerous making the Company's operations more expensive. Approvals are required for land clearing and for ground disturbing activities. Delays in obtaining such approvals can result in the delay to anticipated exploration programmes or mining activities. The Company provides cash security bonds as a condition of its’ exploration licences, and the Company’s access to these security bonds once exploration activities have been completed are subject to the satisfactory completion of the rehabilitation obligations outlined in the exploration licences as assessed by the relevant state government department. f) Native title The Native Title Act recognises and protects the rights and interests in Australia of Aboriginal and Torres Strait Islander people in land and waters, according to their traditional laws and customs. There is significant uncertainty associated with Native Title in Australia and this may impact on the Company's operations and future plans. The Company is required to enter into land access agreements to undertake its proposed exploration program on the tenements and such land access agreements are entered into prior to exploration activities commencing. The Company intends to carry out heritage clearance surveys before implementing its proposed exploration program if required to do so. The Company's current proposed exploration program is not impacted by the known sites of registered aboriginal heritage significance. g) Economic General economic conditions, introduction of tax reform, new legislation, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company, as well as on its ability to fund its operations. h) Additional requirements for capital The Company's capital requirements depend on numerous factors. The Company may require further financing in addition to amounts raised under the Offer. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations. There is however no guarantee that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to the Company. Magmatic Resources Limited ABN 32 615 598 322 21 Remuneration Report (Audited) This report outlines the remuneration arrangements in place for the key management personnel of Magmatic Resources Limited (the “Company” or “Parent”) for the financial year ended 30 June 2024. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001. The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent company, and includes all executives in the Parent and the Group receiving the highest remuneration. Key Management Personnel (i) Directors David Richardson - Executive Chairman Adam McKinnon – Managing Director David Berrie – Non-Executive Director Andy Viner – Non-Executive Director (resigned 9 January 2024) (ii) Executives Michael Franklin - Chief Financial Officer Details of directors’ and executives’ remuneration are set out under the following main headings: A Principles used to determine the nature and amount of remuneration B Details of remuneration C Employment contracts/Consultancy agreements D Share-based compensation A Principles used to determine the nature and amount of remuneration The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aims to align executive reward with the creation of value for shareholders. The key criteria for good remuneration governance practices adopted by the Board are: competitiveness and reasonableness acceptability to shareholders performance incentives transparency capital management The framework provides a mix of fixed salary, consultancy, agreement-based remuneration and share based incentives. The broad remuneration policy for determining the nature and amount of emoluments of Board members and senior executives of the Company is governed by the full board. Although there is no separate remuneration committee, the Board’s aim is to ensure the remuneration packages properly reflect directors’ and executives’ duties and responsibilities. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention and motivation of a high-quality Board and executive team. The current remuneration policy adopted is that no element of any director or executive package is directly related to the Company’s financial performance. Indeed, there are no elements of any director or executive remuneration that are dependent upon the satisfaction of any specific condition however the overall remuneration policy framework is structured to advance and create shareholder wealth. Non-executive directors Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors’ fees and payments are reviewed annually by the Board and are intended to be in line with the market. Non-executive directors receive a board fee and fees for chairing or participating on board committees. They do not receive performance-based pay or retirement allowances. Magmatic Resources Limited ABN 32 615 598 322 22 For the year ended 30 June 2024, exclusive of superannuation guarantee, the annual cash remuneration for the Non-Executive Directors was $121,015. The non-executive directors fee pool approved by shareholders is $250,000 per annum. Directors’ fees On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration relevant to the office of director. The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies for their time, commitment and responsibilities. Non-executive directors receive a Board fee but do not receive fees for chairing or participating on Board committees. Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase payments towards superannuation. Non-executive directors are granted options in the Company from time to time subject to shareholder approval. Fees for non-executive directors are not linked to the performance of the Group. Retirement allowances for directors Apart from superannuation payments paid on salaries there are no retirement allowances for directors. Executive pay The executive pay and rewards framework has the following components:  base pay and benefits such as superannuation where appropriate  long-term incentives through participation in employee equity issues Base pay All executives are either full time employees or consultants who are paid on an agreed basis that has been formalised in a consultancy agreement. Benefits Apart from superannuation paid on executive salaries there are no additional benefits paid to executives. Short-term incentives There are no current short-term incentive remuneration arrangements. Performance based remuneration To ensure that the Company has appropriate mechanisms in place to continue to attract and retain the services of suitable directors and employees, the Company has, in the past, issued options and performance rights to some key personnel. Share-based compensation Issue of shares No shares were issued to directors during the year ended 30 June 2024. Magmatic Resources Limited ABN 32 615 598 322 23 Options No options were issued to directors during the year ended 30 June 2024. The table below shows a reconciliation of options held by each KMP from the beginning to the end of the financial year ending 30 June 2024: 2022 Balance at the start of the year Granted as compensation Vested Forfeited Balance at the end of the year Name & Grant dates Unvested Vested Number % Exercised Number % Other changes Vested and exercisable Unvested D Richardson 25 Nov 2022 2,000,000 - - - - - - - - - 2,000,000 21 Nov 2021 4,000,000 - - - - - - - - - 4,000,000 A McKinnon 15 Mar 2022 10,000,000 - - - - - - - - - 10,000,000 D Berrie - 25 Nov 2022 1,000,000 - - - - - - - - - 1,000,000 21 Nov 2021 2,000,000 - - - - - - - - - 2,000,000 A Viner 25 Nov 2022 1,000,000 - - - - - 1,000,000 100 - - - M Franklin 25 Nov 2022 500,000 - - - - - - - - - 500,000 27 Oct 2021 500,000 - - - - - - - - - 500,000 Performance rights No performance rights were issued during the year ended 30 June 2024. Company performance, shareholder wealth and directors’ and executives’ remuneration No relationship exists between shareholder wealth, director and executive remuneration and Company performance due to the nature of the Company’s operations being a non-producing resources exploration company. The table below shows the losses and earnings per share of the Company for the last five financial years: 2024 2023 2022 2021 2020 Net profit / (loss) ($3,381,360) ($7,491,491) ($3,019,039) $1,188,014 ($4,318,026) Share Price at year end (cents) 5.9 9.0 5.2 12.5 27.0 Profit / (Loss) per share (cents) (0.87) (2.73) (1.13) 0.58 (3.02) B Details of remuneration Amounts of remuneration Details of the remuneration of the directors and other key management personnel (as defined in AASB 124 Related Party Disclosures) of the Company and the Group for the year ended 30 June 2024 are set out in the following tables. The key management personnel of the Group comprise the directors of the Company and persons who have the authority and responsibility for planning, directing and controlling the activities of the Group. Given the size and nature of the Group, there are no other employees who are required to have their remuneration disclosed in accordance with the Corporations Act 2001. No cash remuneration is linked to performance. Year ended 30 June 2024 Name Salary / Fees Post- employment benefits / Superannuation Share-based compensation1 Other Total $ $ $ $ $ Director D Richardson 240,000 26,400 112,125 - 378,525 A McKinnon 343,750 37,812 187,114 - 568,676 D Berrie 100,000 11,000 56,062 - 167,062 A Viner (resigned 9 January 2024) 21,015 2,311 (5,966) - 17,360 Key Management Personnel M Franklin 107,000 11,770 19,077 - 137,847 811,765 89,293 368,412 - 1,269,470 Magmatic Resources Limited ABN 32 615 598 322 24 Year ended 30 June 2023 Name Salary / Fees Post- employment benefits / Superannuation Share-based compensation Other Total $ $ $ $ $ Director D Richardson 240,000 25,200 178,933 - 444,133 A McKinnon 350,000 36,750 186,602 - 573,352 D Berrie 100,000 10,500 89,467 - 199,967 A Viner 40,000 4,200 5,966 - 50,166 Key Management Personnel M Franklin 104,083 10,929 11,116 - 126,128 834,083 87,579 472,084 - 1,393,746 1 Equity-settled share-based payments as per Corporations Regulation 2M.3.03(1) Item 11. These include negative amounts for options forfeited during the year and the reversal of prior year expenses. C Employment contracts / Consultancy agreements On appointment to the Board, all Non-Executive Directors enter into a service agreement with the Company in the form of a letter of appointment. Remuneration of the Managing Director and other executives are formalised in letters of appointment and employment agreements and amendments thereof. These agreements and amendments thereof provide details of the salary and employment conditions relating to each employee. Name Term of agreement and notice period Base salary (excl. superannuation) Termination payments David Richardson Executive Chairman N/A 3 months $240,000 N/A Adam McKinnon Managing Director N/A 6 months $325,000 N/A Michael Franklin Chief Financial Officer N/A 3 months $111,280 N/A D Key management personnel equity holdings 2024 Balance at beginning of year Net movement during the year Balance at the end of year Ordinary shares Directors D Richardson 47,442,571 - 47,442,571 A McKinnon 720,000 415,680 1,135,680 D Berrie 14,029,044 - 14,029,044 A Viner 543,000 - 543,000 Other Key management personnel M Franklin 800,000 117,647 917,647 Magmatic Resources Limited ABN 32 615 598 322 25 Options Balance at beginning of year Net movement during the year Balance at the end of year Directors D Richardson 6,000,000 - 6,000,000 A McKinnon 10,000,000 - 10,000,000 D Berrie 3,000,000 - 3,000,000 A Viner 1,000,000 (1,000,000)(1) - Other Key management personnel M Franklin 1,000,000 - 1,000,000 No remuneration consultants have been used. Other than disclosed above, there are no other transactions with key management personnel. (1)Options lapsed when A Viner resigned as a director. Loans to Key Management Personnel There were no loans to individuals or members of key management personnel during the financial year. Transactions with Key Management Personnel There were no transactions with key management personnel during the financial year or the previous financial year E Voting and comments made at the Company’s 2023 Annual General Meeting Magmatic Resources Ltd received more than 99.3% of “yes” votes on its remuneration report for the 2023 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. End of audited remuneration report. Auditor’s independence and non-audit services Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit Pty Ltd to provide the directors of the Company with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 27 and forms part of this directors’ report for the year ended 30 June 2024. Non-audit services The Company may decide to employ the auditors on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company and/or the consolidated entity are important. The Company has considered the position and is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. Details of remuneration paid to the auditors are: Consolidated 2024 $ 2023 $ Assurance services BDO Audit (WA) Pty Ltd Audit and review of financial statements 51,628 48,293 BDO Audit Pty Ltd Audit and review of financial statements 1.043 - Total remuneration for audit services 52,671 48,293 Total auditor’s remuneration 52,671 48,293 Magmatic Resources Limited ABN 32 615 598 322 26 Proceedings on behalf of Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Insurance of Directors and Officers The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the Company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities. This report is made in accordance with a resolution of the directors. D Richardson Executive Chairman PERTH, Western Australia Dated: 26 September 2024 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF MAGMATIC RESOURCES LIMITED As lead auditor of Magmatic Resources Limited for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Magmatic Resources Limited and the entities it controlled during the period. Neil Smith Director BDO Audit Pty Ltd Perth 26 September 2024 27 Magmatic Resources Limited ABN 32 615 598 322 28 Corporate Governance Statement The Company and the Board are committed to achieving and demonstrating the highest standards of corporate governance. The Company has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council. The 2024 Corporate Governance Statement is lodged with the ASX as a separate document to the Annual Report. The 2024 Corporate Governance Statement was approved by the Board on 26 September 2024 and is current as at 30 June 2024. A description of the Group’s current corporate governance practices is set out in the Group’s Corporate Governance Statement which can be viewed at www.magmaticresources.com. Magmatic Resources Limited ABN 32 615 598 322 29 Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2024 Consolidated 2024 2023 Note $ $ Continuing Operations Other income 2 184,208 187,055 184,208 187,055 Corporate administration expenses 3 (1,102,399) (1,267,465) Exploration and evaluation expenses 3 (1,972,691) (5,847,743) Share based payment expense 12 (443,982) (563,085) Finance costs (46,496) (253) (3,565,568) (7,678,546) Profit / (Loss) before tax (3,381,360) (7,491,491) Income tax 4 - - Net profit / (loss) for the year (3,381,360) (7,491,491) Other comprehensive income, net of tax Items that will not be classified subsequently to profit or loss - - Changes in the fair value of investments at fair value through other comprehensive income 9 1,336,112 (95,841) Items that may be reclassified subsequently to profit or loss - - Total comprehensive profit / (loss) for the year (2,045,248) (7,587,332) Total comprehensive profit / (loss) for the period attributable to the members of Magmatic Resources Limited: (2,045,248) (7,587,332) Profit / (Loss) per share attributable to the members of Magmatic Resources Limited Profit / (Loss) per share (cents) 5 (0.865) (2.729) Profit / (Loss) per share fully diluted (cents) 5 (0.865) (2.729) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. Magmatic Resources Limited ABN 32 615 598 322 30 Consolidated Statement of Financial Position as at 30 June 2024 Consolidated 2024 2023 Note $ $ Current Assets Cash and cash equivalents 7 6,335,389 2,855,309 Other receivables 268,170 79,920 Total Current Assets 6,603,559 2,935,229 Non-Current Assets Plant and Equipment 148,858 105,096 Security Bonds 104,300 122,300 Exploration assets 8 1,368,350 1,368,350 Right-of-use assets 551,942 - Financial assets held at fair value through other comprehensive income 9 1,634,902 298,790 Total Non-Current Assets 3,808,352 1,894,536 Total Assets 10,411,911 4,829,765 Current Liabilities Trade and other payables 10 529,121 488,748 Lease Liabilities 59,617 - Total Current Liabilities 588,738 488,748 Non-Current Liabilities Lease Liabilities 520,812 - Total Non-Current Liabilities 520,812 - Total Liabilities 1,109,550 488,748 Net Assets 9,302,361 4,341,017 Equity Issued capital 11 28,291,017 21,728,407 Reserves 12 6,727,594 4,947,500 Accumulated losses (25,716,250) (22,334,890) Total Equity 9,302,361 4,341,017 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. Magmatic Resources Limited ABN 32 615 598 322 31 Consolidated Statement of Changes in Equity for the year ended 30 June 2024 Issued Capital Share Based Payments Reserve Capital Restructure Reserve Fair Value Other Comprehensive Income ("FVOCI") Reserve Accumulated Losses Total Equity Consolidated $ $ $ $ $ Balance at 1 July 2022 17,094,843 5,212,894 250 (732,888) (14,843,399) 6,731,700 Profit after income tax expense for the year - - - - (7,491,491) (7,491,491) Other comprehensive income for the year, net of tax - - - (95,841) - (95,841) Total comprehensive (loss)/profit for the year - - - (95,841) (7,491,491) (7,587,332) Transactions with owners recorded directly in equity Share-based payments - 563,085 - - - 563,085 Issue of ordinary shares 4,814,800 - - - - 4,814,800 Capital raising expenses (181,236) - - - - (181,236) Total transactions with owners recorded directly in equity 4,633,564 563,085 - (95,841) (7,491,491) (2,390,683) Balance at 30 June 2023 21,728,407 5,775,979 250 (828,729) (22,334,890) 4,341,017 Balance at 1 July 2023 21,728,407 5,775,979 250 (828,729) (22,334,890) 4,341,017 Loss after income tax expense for the year - - - - (3,381,360) (3,381,360) Other comprehensive income for the year, net of tax - - - 1,336,112 - 1,336,112 Total comprehensive (loss)/profit for the year - - - 1,336,112 (3,381,360) (2,045,248) Transactions with owners recorded directly in equity Share-based payments - 443,982 - - - 443,982 Issue of ordinary shares 6,719,210 - - - - 6,719,210 Capital raising expenses (156,600) - - - - (156,600) Total transactions with owners recorded directly in equity 6,562,610 443,982 - 1,336,112 (3,381,360) 4,961,344 Balance at 30 June 2024 28,291,017 6,219,961 250 507,383 (25,716,250) 9,302,361 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. Magmatic Resources Limited ABN 32 615 598 322 32 Consolidated Statement of Cash Flows for the year ended 30 June 2024 Consolidated 2024 2023 Note $ $ Cash flows from operating activities Receipts from customers and Government Subsidies 85,105 69,101 Payments to suppliers and employees (1,085,496) (1,204,978) Payments for exploration expenditure (2,081,835) (5,712,935) Net Interest received / (paid) 47,290 136,405 Net cash used in operating activities 17(a) (3,034,936) (6,712,407) Cash flows from investing activities Payments for property, plant & equipment (2,090) (13,819) Tenement bonds refunded net of bonds (paid) 18,000 (48,000) Net cash from / (used in) investing activities 15,910 (61,819) Cash flows from financing activities Repayment of lease liabilities (63,504) (22,608) Proceeds from the exercise of options - 794,200 Proceeds from share placement 6,719,210 4,020,600 Payment of capital raising costs (156,600) (181,236) Net cash from financing activities 6,499,106 4,610,956 Net increase/(decrease) in cash and cash equivalents 3,480,080 (2,163,271) Cash and cash equivalents at the beginning of the year 2,855,309 5,018,580 Cash and cash equivalents at the end of the year 7 6,335,389 2,855,309 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 33 Note 1: Statement of material accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Adoption of new and revised accounting standards and interpretations In the year ended 30 June 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current reporting periods beginning on or after 1 July 2023. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations issued by the AASB and, therefore, no change is necessary to Company accounting policies. There is no material impact to profit or loss or net assets on the adoption of this new standard in the current or comparative periods as leases were only short term leases and low value leases. (b) New accounting standards and interpretations that are not yet mandatory The Directors have also reviewed all Standards and Interpretations issued and not yet adopted for the year ended 30 June 2024. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no change is necessary to Company accounting policies. (c) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Magmatic Resources Limited is a for-profit entity for the purpose of preparing the financial statements. Historical cost convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are material to the financial statements, are disclosed in note 1(t). (d) Statement of compliance The financial report was authorised by the Board of directors for issue on 26 September 2024. The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS). (e) Government grants Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. (f) Principles of consolidation The consolidated financial statements incorporate all of the assets, liabilities and results of the parent entity (Magmatic Resources Limited) and its controlled subsidiaries; Modeling Resources Pty Ltd and Landslide Investments Pty Ltd. The parent controls an entity when it 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 over the entity. The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 34 of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group. (g) Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. (h) Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is current when it is expected to be realised or intended to be sold or consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non- current. A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. (i) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The Group accounts for long term restricted security deposits as ‘other’ non-current assets. (j) Other receivables Other receivables are recognised at amortised cost, less any provision for impairment. (k) Plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Plant and equipment 3-7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. (l) Leases All leases are accounted for by recognising a right-of-use asset and a lease liability except for: • leases of low value assets; and • leases with a term of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 35 typically the case) this is not readily determinable, in which case the group’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes: • amounts expected to be payable under any residual value guarantee; • the exercise price of any purchase option granted in favour of the group if it is reasonable certain to assess that option; and • any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for: • lease payments made at or before commencement of the lease; • initial direct costs incurred; and • the amount of any provision recognised where the group is required to dismantle, remove or restore the leased asset. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term. When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate (being the interest rate implicit in the lease for the remainder of the lease term or, if that cannot be readily determined, the Group’s incremental borrowing rate at the re-assessment date). An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. The carrying value of lease liabilities is also revised when the variable element of future lease payments dependent on a rate or index is revised or there is a revision to the estimate of amounts payable under a residual value guarantee. In both cases an unchanged discount rate is used. In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. When the group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification: • if the renegotiation results in one or more additional assets being leased for an amount commensurate with the standalone price for the additional rights-of-use obtained, the modification is accounted for as a separate lease in accordance with the above policy • in all other cases where the renegotiated increases the scope of the lease (whether that is an extension to the lease term, or one or more additional assets being leased), the lease liability is remeasured using the discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount. • if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the partial of full termination of the lease with any difference recognised in profit or loss. The lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments over the renegotiated term, with the modified lease payments discounted at the rate applicable on the modification date. The right-of-use asset is adjusted by the same amount. Payments associated with short-term leases and leases of low-value assets are recognised on a straight- line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are items such as IT-equipment and small items of office furniture. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 36 (m) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. (n) Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principle market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Investments and other financial assets Investments and other financial assets are recognised and derecognised on settlement date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the time-frame established by the market concerned. They are initially measured at fair value, net of transaction costs, except for those financial assets classified as fair value through profit or loss, which are initially measured at fair value. The Group classifies its financial assets in the following measurement categories:  Those to be measured subsequently at fair value (either through other comprehensive income (OCI), or through profit or loss); or  Those to be measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, the classification will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. (i) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group subsequently measures all equity investments at fair value. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and pricing models to reflect the issuer’s specific circumstances. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 37 (ii) Impairment The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. For trade and other receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience. (o) Exploration expenditure Exploration expenditure is expensed to the statement of profit or loss as incurred and acquisition costs are capitalised as noncurrent assets. 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. Where uncertainty exists as to the future viability of certain areas, the value of the area of interest is written off or provided against. Due to the speculative nature, when exploration assets have been acquired through equity instruments, the fair value of the asset cannot be measure reliably, therefore the fair value of the equity instrument is used to determine the fair value of the asset. Impairment testing of exploration and evaluation expenditure Exploration and evaluation expenditure is assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. Exploration and evaluation expenditure is tested for impairment when any of the following facts and circumstances exist:  The term of exploration licence in the specific area of interest has expired during the reporting period or will expire in the near future, and is not expected to be renewed;  Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area are not budgeted nor planned;  Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the decision was made to discontinue such activities in the specified area; or  Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. Where a potential impairment is indicated, an assessment is performed for each area of interest. The Group performs impairment testing in accordance with accounting policy note 1(n) (ii). (p) Share based payments Equity-settled share-based payment transactions to Directors and seed capitalists for services are measured in reference to the fair value of equity instruments granted. Equity-settled share-based payments in return for goods and services are measured at fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments. The fair value of options and performance rights with non-vesting conditions and no service conditions attached issued to Directors, seed capitalists and suppliers, are valued with a Black-Scholes pricing model. The fair value is measured at the grant date of the equity instrument and is recognised in equity in the share- based payment reserve. The number of instruments expected to vest is estimated based on the non-market vesting conditions. The total expense is recognised at the date of grant of the options and rights. (q) Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 38 (r) Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. (s) Deferred tax Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. (t) Critical accounting estimates and judgements The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. Judgements: Impairment of Exploration and Evaluation Asset Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s accounting policy (refer Note 1(o)), requires judgements as to future events and circumstances, in particular, whether successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. If, after having capitalised the expenditure under accounting policy 1(o), a judgement is made that recovery of the expenditure is unlikely, an impairment loss is recorded in the income statement in accordance with accounting policy 1(o). The carrying amounts of exploration and evaluation assets are set out in Note 8. Share-based payments The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to note (p). Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 39 Consolidated 2024 $ 2023 $ Note 2: Other income AGC shared services agreement income 76,856 54,099 Joint Venture Operators Fee 12,915 - Interest income 93,787 136,658 Other 650 (3,702) 184,208 187,055 Note 3: Expenses Corporate and administration expenses Depreciation 40,826 43,709 Director and Company Secretarial Fees 177,595 208,738 Investor Relations 15,700 22,024 Legal Fees 49,956 12,481 Travel 47,501 99,962 Employee Expenses 531,383 692,356 Rental Expense 40,279 61,896 Right of Use Asset Amortisation 91,990 21,529 Other 107,169 104,770 1,102,399 1,267,465 Exploration and evaluation expenses Exploration expenses incurred 1,972,691 5,847,743 Net exploration and evaluation expense 1,972,691 5,847,743 On 8 March 2024 the Company announced it had entered into a Farm-in and Joint Venture Agreement (FJV) over the Myall Project with FMG Resources Pty Ltd (Fortescue), a wholly-owned subsidiary of Fortescue Limited. The FJV will see Fortescue spend up to $14 million over six years to earn up to 75% joint venture interest in the project. Fortescue may earn an initial 51% interest by incurring $6 million in expenditure in the initial earn-in period of up to four years, including a minimum expenditure of $3M million and minimum 3,000 metres of drilling in the first two years. Magmatic will be the operator during the initial earn-in period of up to four years and is entitles to a 10% operator’s fee. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 40 Note 4: Income tax Consolidated (a) Income tax benefit 2024 2023 $ $ The prima facie income tax expense on pre-tax accounting result from operations reconciles to the income tax benefit in the financial statements as follows: Accounting profit/(loss) from continuing operations before income tax (3,381,360) (7,491,491) At the statutory income tax rate of 25% (2023: 25%) (845,340) (1,872,872) Add - Non-assessable income - - - Share based payments 110,996 140,771 - Deductible equity costs (53,192) (48,539) - Capital gain on exit from consolidated group - - - Capital losses utilised - - - Non-deductible expenses - - - Tax loss not brought to account 787,536 1,780,640 Income tax (benefit) - - Accounting profit/(loss) from Other Comprehensive Income before income tax 1,336,112 (95,839) At the statutory income tax rate of 25% (2023: 25%) 334,028 (23,959) Add - Temporary differences not brought to account (334,028) 23,959 Income tax (benefit) reported in the statement of comprehensive income - - (b) Unrecognised deferred tax balances The following deferred tax assets have not been brought to account Deferred tax assets comprise: Accruals 4,685 6,327 Operating lease 7,122 - Employee entitlements 61,683 59,685 Share issues & capital costs 78,065 98,251 Investments (126,846) 207,182 Losses available for offset against future income – revenue 5,206,578 4,388,756 5,231,287 4,760,201 Deferred tax liabilities comprise: Prepayments 14,892 8,099 Exploration Equipment 21,232 838 36,124 8,937 Net unrecognised deferred tax assets 5,195,163 4,751,264 Deferred tax assets have not been recognised in respect of these items because it is not certain that future taxable profit will be available against which the Group can utilise the benefit thereof. Tax Losses As at 30 June 2024, the Consolidated Entity has $20,826,313 (2023: $17,555,023) of taxable losses that are available for offset against future taxable profits of the consolidated entity, subject to the loss recoupment requirements in the Income Tax Assessment Act 1997. No deferred tax assets have been recognised in the Statement of Financial Position in respect of the amount of these losses, as it is not presently probable future taxable profits will be available against which the Company can utilise the benefit. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 41 Consolidated 2024 2023 $ $ Note 5: Profit / (Loss) per share Total basic profit / (loss) per share (0.0087) (0.0273) Total fully diluted profit / (loss) per share (0.0087) (0.0273) The profit / (loss) and weighted average number of ordinary shares used in the calculation of basic profit / (loss) per share is as follows: Net profit / (loss) for the year (3,381,360) (7,491,491) The weighted average number of ordinary shares 390,961,221 274,530,842 Options outstanding at year end 25,000,000 28,500,000 Fully diluted total weighted average securities on issue 415,961,221 303,030,842 Note 6: Segment information AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. AASB 8 “Operating Segments’” states that similar operating segments can be aggregated to form one reportable segment. Following incorporation, the Company acquired Modeling Resources Pty Ltd and Landslide Investments Pty Ltd. The Group has one reportable operating segment being gold exploration projects in Australia. Note 7: Cash and cash equivalents Consolidated 2024 2023 $ $ Cash at bank and on hand 6,335,389 2,855,309 6,335,389 2,855,309 (Refer to Note 13(f) which contains risk exposure analysis for cash and cash equivalents) Note 8: Exploration project acquisition costs Consolidated 2024 $ 2023 $ Opening balance 1,368,350 1,368,350 Project acquisition costs - - Impairment of acquired exploration projects - - Acquisition costs in respect of areas of interest in the exploration phase 1,368,350 1,368,350 Exploration expenditure is expensed to the statement of profit or loss as incurred and acquisition costs are capitalised as non-current assets. 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. Where uncertainty exists as to the future viability of certain areas, the value of the area of interest is written off or provided against. The carrying value of capitalised exploration expenditure is assessed for impairment at each area of interest whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amounts. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 42 An impairment exists when the carrying amount of an asset or area of interest exceeds its estimated recoverable amount. The asset or area of interest is then written down to its recoverable amount. Any impairment losses are recognised in the profit or loss account. Note 9: Financial assets held at fair value through other comprehensive income Investments Consolidated 2024 $ 2023 $ Opening balance 298,790 394,631 Revaluation to fair market value 1,336,112 (95,841) Closing balance 1,634,902 298,790 Note 10: Trade and other payables Current Trade and other payables Consolidated 2024 $ 2023 $ Trade creditors * 234,777 295,153 Other creditors 292,083 191,159 Goods and services tax payable 2,261 2,436 529,121 488,748 * Trade payables are non-interest bearing and are normally paid on 30 day terms. Note 11: Issued capital Consolidated (a) Ordinary shares issued 2024 $ 2023 $ 417,050,714 (2023: 305,692,798) ordinary shares 28,291,017 21,728,407 Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. In the event of winding up of the parent entity, ordinary shareholders rank after all creditors and are fully entitled to any proceeds on liquidation. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 43 (b) Movements in ordinary share capital: Date Details Number of shares $ Balance as at 30 June 2022 254,486,798 17,094,843 13 September 2022 Options exercised at $0.0722 8,000,000 577,600 14 October 2022 Options exercised at $0.0722 3,000,000 216,600 23 November 2022 Share Placement at $0.10 per share 30,206,000 3,020,600 04 January 2023 Share Placement at $0.10 per share 2,800,000 280,000 19 January 2023 Share Placement at $0.10 per share 7,200,000 720,000 Balance as at 30 June 2023 305,692,798 21,728,407 Balance as at 30 June 2023 305,692,798 21,728,407 11 March 2024 Share Placement at $0.04884 per share 75,946,151 3,709,210 27 May 2024 Share Placement at $0.085 per share 35,411,765 3,010,000 Capital Raising Expenses (156,600) Balance as at 30 June 2024 417,050,714 28,291,017 (c) Movements in share options 2024 2023 Number of Options Weighted average exercise price Number of Options Weighted average exercise price Unlisted Options to acquire ordinary fully paid shares on or before 30 September 2023: Beginning of the financial year 750,000 0.2642 750,000 0.2642 Issued during the year - - - - Converted during the year - - - - Expired during the year (750,000) 0.2642 - - Balance at end of financial year - - 750,000 0.2642 Unlisted Options to acquire ordinary fully paid shares on or before 28 May 2024: Beginning of the financial year 4,000,000 0.2062 4,000,000 0.2062 Issued during the year - - - - Converted during the year - - - - Expired during the year (4,000,000) 0.2062 - - Balance at end of financial year - - 4,000,000 0.2062 (1) Unlisted Options to acquire ordinary fully paid shares on or before 31 October 2024: Beginning of the financial year 1,250,000 0.1500 1,250,000 0.1500 Issued during the year - - - - Converted during the year - - - - Expired during the year - - - - Balance at end of financial year 1,250,000 0.1500 1,250,000 0.1500 (2) Unlisted Options to acquire ordinary fully paid shares on or before 31 December 2024: Beginning of the financial year 6,000,000 0.1609 6,000,000 0.1609 Issued during the year - - - - Converted during the year - - - - Expired during the year - - - - Balance at end of financial year 6,000,000 0.1609 6,000,000 0.1609 Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 44 2024 2023 Number of Options Weighted average exercise price Number of Options Weighted average exercise price (3) Unlisted Options to acquire ordinary fully paid shares on or before 31 May 2025: Beginning of the financial year 10,000,000 0.1002 10,000,000 0.1002 Issued during the year - - - - Converted during the year - - - - Expired during the year - - - - Balance at end of financial year 10,000,000 0.1002 10,000,000 0.1002 (4) Unlisted Options to acquire ordinary fully paid shares on or before 31 December 2025: Beginning of the financial year 6,500,000 0.1440 - - Issued during the year - - 6,500,000 0.1440 Converted during the year - - - - Expired during the year - - - - Balance at end of financial year 6,500,000 0.1440 6,500,000 0.1440 (5) Unlisted Options to acquire ordinary fully paid shares on or before 31 December 2025: Beginning of the financial year - - - - Issued during the year 2,250,000 0.0920 - - Converted during the year - - - - Expired during the year - - - - Balance at end of financial year 2,250,000 0.0920 - - (1) During a prior year, the Group issued 1,250,000 options with the fair value of $61,098 in accordance with the Company’s employee share ownership plan to certain key management personnel which vest progressively throughout the period during which they can be exercised but lapse if their employment is terminated. The options were valued using a Black-Scholes option pricing model using the following inputs: Grant Date Share Price on Grant Date Exercise Price Expected Volatility Option Life Dividend Yield Interest Rate Fair Value per Option 27 October 2021 $0.093 $0.15 100% 3.01 years 0.00% 1.032% $0.049 (2) During a prior year, the Group issued 6,000,000 options with the fair value of $316,387 in accordance with the Company’s employee share ownership plan to certain key management personnel which vest progressively throughout the period during which they can be exercised but lapse if their employment is terminated. The options were valued using a Black-Scholes option pricing model using the following inputs: Grant Date Share Price on Grant Date Exercise Price Expected Volatility Option Life Dividend Yield Interest Rate Fair Value per Option 29 November 2021 $0.099 $0.1452 100% 3.09 years 0.00% 0.929% $0.055 29 November 2021 $0.099 $0.1936 100% 3.09 years 0.00% 0.929% $0.049 Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 45 (3) During a prior year, the Group issued 10,000,000 options with the fair value of $599,684 in accordance with the Company’s employee share ownership plan to the Company’s new managing director which vest progressively throughout the period during which they can be exercised but lapse if his employment is terminated. The options were valued using a Black-Scholes option pricing model using the following inputs: Grant Date Share Price on Grant Date Exercise Price Expected Volatility Option Life Dividend Yield Interest Rate Fair Value per Option 15 March 2022 $0.095 $0.1002 100% 3.21 years 0.00% 1.880% $0.060 4) During the prior year, the Group issued 6,500,000 options with the fair value of $202,298 in accordance with the Company’s employee share ownership plan to certain key management personnel which vest progressively throughout the period during which they can be exercised but lapse if their employment is terminated. The options were valued using a Black-Scholes option pricing model using the following inputs: Grant Date Share Price on Grant Date Exercise Price Expected Volatility Option Life Dividend Yield Interest Rate Fair Value per Option 25 November 2022 $0.0645 $0.1440 100% 3.10 years 0.00% 3.275% $0.031 5) During the year, the Group issued 2,250,000 options with the fair value of $64,707 in accordance with the Company’s employee share ownership plan to certain key management personnel which vest progressively throughout the period during which they can be exercised but lapse if their employment is terminated. The options were valued using a Black-Scholes option pricing model using the following inputs: Grant Date Share Price on Grant Date Exercise Price Expected Volatility Option Life Dividend Yield Interest Rate Fair Value per Option 8 December 2023 $0.054 $0.092 100% 3.04 years 0.00% 4.16% $0.029 Note 12: Reserves Consolidated 2024 $ 2023 $ Capital Restructure reserve Opening balance 250 250 Expense for the year - - Closing balance 250 250 Share-based payment reserve Opening balance 5,775,979 5,212,894 Share based expense for year 443,982 563,085 Share based capital raising costs - - Closing balance 6,219,961 5,775,979 Fair Value Other Comprehensive Income ("FVOCI") Reserve Opening balance (828,729) (732,888) Fair Value Other Comprehensive Income ("FVOCI") Reserve movement 1,336,112 (95,841) Closing balance 507,383 (828,729) Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 46 Nature of reserves: (a) Capital restructure reserve The capital restructure reserve arises from the acquisition of Modeling Resources Pty Ltd (b) Share-based payment reserve This reserve records the value of equity instruments issued to directors, employees and suppliers as recognition for services provided. (c) Fair Value Other Comprehensive Income ("FVOCI") Reserve This reserve records the value change in the Company’s investment in Australian Gold and Copper Ltd [ASX:AGC]. (b) Categories of financial instruments The Group’s principal financial instruments comprise of cash and short-term deposits. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and liabilities such as receivables and trade payables, which arise directly from its operations. It is, and has been throughout the year, the Group’s policy that no trading in financial instruments shall be undertaken during the year. (c) Financial risk management objectives The Group is exposed to market risk (including interest rate risk and equity price risk), credit risk and liquidity risk. The main risks arising from the Group’s financial instruments is the price risk of Australian Gold and Copper Ltd’s shares. The Board reviews and agrees policies for managing each of these risks and they are summarised below. (d) Market risk Equity price risk sensitivity analysis There has been no change to the Group’s exposure to market risks or the manner in which it manages and measures the risk from the previous period. (i) Interest rate risk management All cash balances attract a floating rate of interest. Excess funds that are not required in the short term are placed on deposit for a period of no more than 3 months. The Group’s exposure to interest rate risk and the effective interest rate by maturity periods is set out below. Interest rate sensitivity analysis As the Group has no interest-bearing borrowings, its exposure to interest rate movements is limited to the amount of interest income it can potentially earn on surplus cash deposits. At 30 June 2024, if interest rates had changed by + 50 basis points and all other variables were held constant, the Group’s loss would have been $11,503 (2023: $23,085) lower as a result of higher interest income on cash and cash equivalents. If interest rates dropped on average – 50 basis points then the Group’s loss would have increased the by $11,503 (2023: $23,085). (e) Credit risk management Credit risk relates to the risk that counterparties will default on their contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from any defaults. Note 13: Financial instruments (a) Capital risk management Prudent capital risk management implies maintaining sufficient cash and marketable securities to ensure continuity of tenure to exploration assets and to be able to conduct the Group’s business in an orderly and professional manner. The Board monitors its future capital requirements on a regular basis and will, when appropriate, consider the need for raising additional equity capital or to farm-out exploration projects as a means of preserving capital. The Board currently has a policy of not entering into any debt arrangements. Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 47 (f) Liquidity risk management Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to ensure continuity of tenure to exploration assets and to be able to conduct the Group’s business in an orderly and professional manner. Cash deposits are only held with major financial institutions. 2024 Weighted Average Interest Rate Less than 1 month 1-3 months 3 months – 1 year 1 + years Financial assets $ $ $ $ Cash and cash equivalents – non - interest bearing n/a 89,455 - - - Cash and cash equivalents – interest bearing 5.02% 745,934 5,500,000 - - Investments held at fair value n/a - - - 1,634,902 Trade and other receivables n/a 268,169 - - 104,300 1,103,559 5,500,000 - 1,739,202 Financial liabilities Trade and other payables n/a 323,783 51,335 154,004 - Lease Liabilities n/a 10,380 20,760 93.420 455,869 334,163 72,095 247,424 455,869 2023 Weighted Average Interest Rate Less than 1 month 1-3 months 3 months – 1 year 1 + years Financial assets $ $ $ $ Cash and cash equivalents – non - interest bearing n/a 105,068 - - - Cash and cash equivalents – interest bearing 2.98% 750,241 2,000,000 - - Investments held at fair value n/a - - - 298,790 Trade and other receivables n/a 4,689 - - 128,000 859,998 2,000,000 - 426,790 Financial liabilities Trade and other payables n/a 250,006 151,309 87,433 - Lease Liabilities n/a - - - - 250,006 151,309 87,433 - The directors consider that the carrying value of the financial assets and financial liabilities are recognised in the consolidated financial statements approximate their fair values. Note 14: Commitments and contingencies In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligation of the Group are subject to the minimum expenditure commitments over the life of the licenses, required as per the Mining Act 1978, as amended, and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity of the relevant area of interest. Currently, the minimum expenditure commitment for the granted tenements is approximately $962,890 (2023: $962,650). Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 48 Note 15: Key management personnel disclosures (a) Directors At the date of this report the directors of the Company are: D Richardson – Executive Chairman A McKinnon – Managing Director D Berrie – Non-Executive Director and Joint Company Secretary A Viner – Non-Executive Director (resigned 9 January 2024) There were no changes of the key management personnel after the reporting date and the date the financial report was authorised for issue. (b) Key management personnel At the date of this report the other Key management personnel of the Company are: M Franklin – Chief Financial Officer (c) Key management personnel compensation Consolidated 2024 $ 2023 $ Short-Term 811,765 834,083 Post-employment 89,293 87,579 Share-based payments 368,412 472,084 Termination benefits - - 1,269,470 1,393,746 Detailed remuneration disclosures of directors and key management personnel are in pages 21 to 25 of this report. There were no loans to individuals or members of the key management personnel during the financial year or the previous financial year. Note 16: Subsidiaries Name of entity Country of incorporation Class of shares Equity holding 2024 % 2023 % Modeling Resources Pty Ltd Australia Ordinary 100 100 Landslide Investments Pty Ltd Australia Ordinary 100 100 Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 49 Note 17: Reconciliation of loss after income tax to net cash outflow from operating activities Consolidated 2024 $ 2023 $ a) Reconciliation of loss from ordinary activities after income tax to net cash outflow from operating activities Net profit / (loss) for the year after income tax (3,381,359) (7,491,491) Share based payment expense 443,982 563,085 Depreciation 40,826 43,709 ROU Asset Amortisation 9,494 21,529 Movements in working capital (Increase) / Decrease in other receivables (161,414) 10,703 (Increase) / Decrease in prepayments (26,837) 26,325 Increase / (Decrease) in trade and other payables 40,373 113,733 Net cash outflows from operating activities (3,034,936) (6,712,407) b) Non-cash financing and investing activities There were no non-cash financing and investing activities in the financial year ended 30 June 2024. Note 18: Parent Entity Disclosures Financial position 2024 $ 2023 $ Assets Current assets 6,315,486 2,821,445 Non-current assets 3,005,193 1,670,051 Total assets 9,320,679 4,491,495 Liabilities Current liabilities 199,710 160,203 Total liabilities 199,710 160,203 Net assets 9,120,969 4,331,292 Equity Issued capital 28,336,166 21,773,556 Reserves 6,682,197 5,031,199 Accumulated losses (25,897,394) (22,473,463) Total equity 9,120,969 4,331,292 Financial performance Profit / (Loss) for the year (1,230,906) (1,397,830) Other comprehensive income/(loss) 1,336,112 (95,841) Total comprehensive income/(loss) 105,206 (1,493,671) Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 50 Commitments Refer to note 14: Capital and Other Commitments. Contingencies There were no contingent assets or liabilities of the parent as at 30 June 2024 related to exploration and evaluation expenditure (30 June 2023: $ nil). Guarantees entered into by the parent entity in relation to the debts of its subsidiaries There are no deeds of cross guarantee in place by the parent entity. Note 19: Events after the reporting date There has not been any matter or circumstance that has arisen after balance date that has 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 periods. Note 21: Fair Value Measurement This note provides an update on the judgements and estimates in determining the fair values of the financial instruments since the last annual financial report. Fair Value Hierarchy To provide an indication about the reliability of the inputs used in determining fair value. The Group classifies its financial instruments into the three levels prescribed under accounting standards. An explanation of each level follows underneath the table. The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value. As at 30 June 2024 Level 1 $ Level 2 $ Level 3 $ Total $ Financial assets as FVOCI – Equity Securities 1,634,902 - - 1,634,902 As at 30 June 2023 Financial assets as FVOCI – Equity Securities 298,790 - - 298,790 There were no transfers between levels during the year. The Group’s policy is to recognise transfers into and out of the fair value hierarchy levels at reporting date. Note 20: Auditor’s remuneration The BDO entity performing the audit of the group transitioned from BDO Audit (WA) Pty Ltd to BDO Audit Pty Ltd on on 14 June 2024. Consolidated 2024 $ 2023 $ Assurance services BDO Audit (WA) Pty Ltd Audit and review of financial statements 51,628 48,293 BDO Audit Pty Ltd Audit and review of financial statements 1.043 Total remuneration for audit services 52,671 48,293 Total auditor’s remuneration 52,671 48,293 Magmatic Resources Limited ABN 32 615 598 322 Notes to the consolidated financial statements for the year ended 30 June 2024 51 The fair value of the financial assets and liabilities held by the Group must be estimated for recognition, measurement and /or disclosure purposes. The Group measures fair value by level, per the following fair value measurement hierarchy:  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities  Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or the liability, either directly (as prices) or indirectly (derived from prices); and  Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Valuation techniques used to determine fair values The Group did not have any financial instruments that are recognised in the financial statements where their carrying value differed from the fair value. The fair value of assets and liabilities are included at an amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The carrying value of amounts of cash and short-term trade and other receivables, trade payables and other current liabilities approximate their fair value largely due to the short-term maturities of these payments. Financial assets at fair value through other comprehensive income – equity securities The fair value of the equity holdings held in ASX companies are based on the quoted market prices from the ASX on the last trading day prior to the period end. Magmatic Resources Limited ABN 32 615 598 322 52 Consolidated Entity Disclosure Statement This Consolidated Entity Disclosure Statement has been prepared in accordance with the Section 295 (3A) of the Corporations Act 2001 and includes the required information for Magmatic Resources Limited and the entity it controls in accordance with AASB10 Consolidated Financial Statements. Tax Residency S295 (3A) (vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency may involve judgement as there are different interpretations that could be adopted, and which could give rise to different conclusions regarding residency. In determining tax residency, the consolidated entity has applied the following interpretations: Australian tax residency the consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR2018/5. Foreign tax residency Where appropriate, the independent tax advisers have been engaged to assist in the determination of tax residency to ensure applicable foreign tac legislation has been complied with. Trusts and partnerships Australian tax law generally does not contain residency tests for trusts and partnerships and these entities are typically taxed on a flow-through basis. Additional disclosures regarding the tax status of trusts and partnerships have been included where relevant. Name of entity Type of entity Trustee, Partner or participant in joint venture Country of Incorporation % Share capital held at 30 June 2024 Australian Resident or Foreign Resident Foreign tax jurisdictions of foreign resident Modeling Resources Pty Ltd Body corporate - Australia 100 Australian N/A Landslide Investments Pty Ltd Body corporate - Australia 100 Australian N/A Magmatic Resources Limited ABN 32 615 598 322 53 Directors’ declaration 1. In the opinion of the directors of Magmatic Resources Limited (the “Company”): a. the accompanying financial statements and notes are 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 2024 and of its performance for the financial year then ended; and ii. complying with Accounting Standards, Corporations Regulations 2001, professional reporting requirements and other mandatory requirements. b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. c. the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. d. the information disclosed in the attached consolidated entity disclosure statement is true and correct. 2. This declaration has been made after receiving the declarations required to be made to the directors in accordance with Section 295A of the Corporations Act 2001 for the year ended 30 June 2024. This declaration is signed in accordance with a resolution of the Board of Directors. D Richardson Chairman Perth, Western Australia 26 September 2024 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au INDEPENDENT AUDITOR'S REPORT To the members of Magmatic Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Magmatic Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2024, 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 report, including material accounting policy information, the consolidated entity disclosure statement 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 2024 and of its financial performance for the year ended on that date; 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 and 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. 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. 54 Carrying value of exploration and evaluation expenditure Key audit matter How the matter was addressed in our audit As disclosed in Note 8 to the Financial Report, the carrying value of capitalised exploration and evaluation expenditure represents a material asset of the Group. Refer to Notes 1(o), 1(t) of the Financial Report for a description of the accounting policy and material judgements applied to capitalised exploration and eval- uation expenditure. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources (“AASB 6”), the recoverability of exploration and evaluation expenditure requires significant judgment by management in determining whether there are any facts or circumstances that exist to suggest that the carrying amount of this asset may exceed its recoverable amount. As a result, this is considered a key audit matter. Our procedures included, but were not limited to: • Assessing whether rights to tenure of the Group’s area of interest remained current at balance date; • Considering the status of the ongoing exploration programmes in the respective areas of interest by holding discussions with management, and reviewing the Group’s exploration budgets, ASX announcements and director’s minutes; • Considering whether any such areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed; • Considering whether any facts or circumstances existed to suggest impairment testing was required; and • Assessing the adequacy of the related disclosures in Notes 1(o), 1(t) and 8 to the financial report. 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 2024, 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 this other information, we are required to report that fact. We have nothing to report in this regard. 55 Responsibilities of the directors for the Financial Report The directors of the Company are responsible for the preparation of: a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i) the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the group 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 has no realistic alternative but to do so. 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 Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our auditor’s report. 56 Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 21 to 25 of the directors’ report for the year ended 30 June 2024. In our opinion, the Remuneration Report of Magmatic Resources Limited, for the year ended 30 June 2024, 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. BDO Audit Pty Ltd Neil Smith Director Perth, 26 September 2024 57 Magmatic Resources Limited ABN 32 615 598 322 58 Additional Shareholder Information The following additional information is current as at 25 September 2024. Corporate Governance: The Company’s Corporate Governance Statement is available on the Company’s website at www.magmaticresources.com/corporate-governance Substantial Shareholders: Holder Name Holding % IC FMG Resources Pty Ltd 83,004,975 19.90% Bilingual Software Pty Ltd and D & R Richardson 47,442,571 11.38% Mr Ming Yiu Ko 27,100,000 7.39% Gold Fields Australia Pty Ltd 19,200,000 4.60% Ordinary Shares – Range of Units: Holdings Ranges Holders Total Units % 1 - 1,000 61 7,375 0.00 1,001 - 5,000 184 653,903 0.16 5,001 - 10,000 312 2,608,511 0.63 10,001 - 100,000 931 38,651,468 9.27 >100,000 348 375,129,457 89.94 Totals 1,836 417,050,714 100.00 There are 361 shareholders with less than a marketable parcel. Voting rights Each fully paid ordinary share carries voting rights of one vote per share. The top 20 holders of ordinary shares are: Ranking Holder Shares Held % 1 FMG RESOURCES PTY LTD 83,004,975 19.90 2 BILINGUAL SOFTWARE PTY LTD 36,668,823 8.79 3 MR MING YIU KO 30,800,000 7.39 4 GOLD FIELDS AUSTRALIA PTY LTD 19,200,000 4.60 5 DAVTHEA PTY LTD 14,029,044 3.36 6 MR MARC DAVID HARDING 13,291,549 3.19 7 MR DAVID RICHARDSON + MRS RYOKO RICHARDSON 10,367,502 2.49 8 GLENEDEN NOMINEES PTY LTD 7,200,000 1.73 9 MR NEVRES CRLJENKOVIC 7,170,000 1.72 10 MR ROBERT ANTHONY HEALY 6,350,000 1.52 11 AG INVESTMENT SERVICES PTY LTD 4,700,000 1.13 12 CITICORP NOMINEES PTY LIMITED 4,427,723 1.06 13 BELGRAVIA STRATEGIC EQUITIES PTY LTD 3,000,000 0.72 14 CERTANE CT PTY LTD 2,941,176 0.71 15 YERONDA NOMINEES PTY LTD 2,785,464 0.67 16 KAOS INVESTMENTS PTY LIMITED 2,700,000 0.65 17 MR WILLIAM JOHN QUAID 2,411,394 0.58 18 MR ALAN GOODFELLOW 2,185,294 0.52 19 MR BINH THANH LE 1,980,000 0.47 20 GOSOJO PTY LTD 1,965,000 0.47 Total 257,177,944 61.67 Total remaining holders 159,872,770 38.33 Magmatic Resources Limited ABN 32 615 598 322 59 Unquoted equity securities Unquoted equity securities on issue as at 25 September 2024 was as follows: - 3 Option holders holding 2,250,000 options, exercisable at $0.0920, expiring 08 December 2026 - 6 Option holders holding 5,500,000 options, exercisable at $0.1440, expiring 31 December 2025 - 1 Option holder holding 10,000,000 options, exercisable at $0.1002, expiring 31 May 2025 - 2 Option holders holding 4,050,000 options, exercisable at $0.1452, expiring 31 Dec 2024 - 3 Option holders holding 1,250,000 options, exercisable at $0.1500, expiring 31 October 2024 - 2 Option holders holding 1,950,000 options, exercisable at $0.1936, expiring 31 Dec 2024 Tenement Listing Project Area Tenement Details % Held Wellington North – Duke EL6178 100 Myall EL6913 100 Parkes – Alectown EL7424 100 Wellington North – Bodangora EL7440 100 Parkes EL7676 100 Wellington North - Combo EL8357 100

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