ACN 110 150 055 Annual Report For the Year Ended 31 December 2024 CONTENTS CORPORATE DIRECTORY ...................................................................................................................................................... 1 CHAIRMAN’S LETTER .............................................................................................................................................................. 2 DIRECTORS’ REPORT ............................................................................................................................................................. 3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ......................................................................................... 21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................................. 22 CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................... 23 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................................. 24 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................ 25 CONSOLIDATED ENTITY DISCLOSURE STATEMENT ........................................................................................................ 63 DIRECTORS’ DECLARATION ................................................................................................................................................ 64 AUDITOR’S INDEPENDENCE DECLARATION ..................................................................................................................... 65 INDEPENDENT AUDITOR’S REPORT ................................................................................................................................... 66 MINERAL RESOURCES AND ORE RESERVES STATEMENT ............................................................................................. 73 SECURITY HOLDER INFORMATION ..................................................................................................................................... 75 CORPORATE DIRECTORY Directors Mr Peter Gunzburg (Independent Non-Executive Chairman) Mr Brett Smith (Executive Director) Mr Grahame White (Independent Non-Executive Director) Mr Patrick O’Connor (Independent Non-Executive Director) Company Secretary Ms Natalie Teo Key Management Mr Daniel Broughton (Chief Financial Officer) Share Registry Computershare Investor Services Pty Ltd Level 17, 221 St Georges Terrace Perth WA 6000 GPO Box Melbourne VIC 3001 Phone: (within Australia) 1300 850 505 Phone: (outside Australia) +61 3 4915 4000 Facsimile: +61 3 9473 2500 Registered Office and Postal Address Unit 202, Level 2 39 Mends Street South Perth WA 6151 Phone: +61 8 9220 5700 E-mail: reception@metalsx.com.au Website: www.metalsx.com.au Securities Exchange Australian Securities Exchange Central Park 152-158 St George’s Terrace Perth WA 6000 Code: ASX: MLX Domicile and Country of Incorporation Australia 1 CHAIRMAN’S LETTER This report is for the 12 months ending 31 December 2024. Your Company's principal asset remains its 50% interest in the Bluestone Mines Tasmania Joint Venture (BMTJV), which owns and operates the Renison Tin Mine (Renison) in Northwest Tasmania. In the last 12 months, that operation has benefited from a higher than budgeted tin price and a lower than budgeted Australian Dollar. These two factors, combined with management's ability to increase both production and recoveries of tin to deliver record annual tin production of 11,006 tonnes, have resulted in an increase in cashflow from operating activities of 121% and delivered a total comprehensive income after tax attributable to members of $101.85 million and a cash balance at 31 December 2024 of $220.64m. With a significantly healthier balance sheet, your board made two consequential investment decisions during the year and announced a possible third. Our first decision was to implement an on-market share buy-back which resulted in 20,874,529 Metals X shares, representing approximately 2.3% of the issued capital, being repurchased and cancelled. The second was to acquire a 29.91% interest in London-listed First Tin PLC (www.firsttin.com), which owns the Taronga Tin Project in northern NSW and a secondary tin project in Germany. As a consequence, fellow director Mr Brett Smith and I joined the First Tin Board. Our third possible investment decision concerns the Hong Kong-listed Greentech Technology International Limited, which has an effective 41% interest in the BMTJV. Greentech's shares have been suspended since 2 September 2024, and the Greentech board has been unable to publish the unaudited interim results for the six months ended 30 June 2024 (the "Interim Results") as certain Greentech Directors have requested additional information to deliberate and finalise the Interim Results. We have indicated our preparedness to consider a cash offer for 100% of the issued shares in Greentech if all our various concerns can be addressed. If a full takeover of Greentech was to be successful, we would increase our effective interest in the BMTJV to 91%. Our internal growth option relating to the recovery of the tailings at Renison (Rentails) has progressed to focus on the Low-Grade Concentrate Export option of Rentails with the undertaking of the pre-execution front-end engineering and definition (FEED) stage, for completion in parallel with environmental approvals in late 2026 leading to a Final Investment Decision. I think it is fair to say that the stars aligned for Metals X during the year, and whilst it is not in management's power to align stars, I am confident they will continue their best efforts to manage those things within their control. Peter Gunzburg Non-Executive Chairman 2 DIRECTORS’ REPORT The Directors present their report together with the consolidated financial report of Metals X Limited (“Metals X” or the “Company”) and its controlled entities (together the “Group”) for the year ended 31 December 2024 (the Reporting Period) and the Independent Auditor’s Report thereon. 1. Directors The names of the Company's Directors in office during the Reporting Period and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated. Independent Non-Executive Chairman – Mr Peter Gunzburg B. Com (appointed 10 July 2020). Mr Gunzburg has over 40 years’ experience acting as a public company director, stockbroker, and investor. Mr Gunzburg is currently a non-executive director of London Stock Exchange listed First Tin Plc (LSE:1SN). Mr Gunzburg has previously been a director of Australian Stock Exchange Ltd, Eyres Reed Ltd, CIBC World Markets Australia Ltd and various public companies. Mr Gunzburg is a member of the Remuneration and Nomination Committee and the Audit and Risk Committee. Executive Director – Mr. Brett Smith MBA, M.A (appointed 2 December 2019 as Non-Executive Director and Executive Director as of 10 July 2020). Mr Smith has participated in the development of a number of mining and mineral processing projects including coal, iron ore, base, and precious metals. He has also managed engineering and construction companies in Australia and internationally. Mr. Smith has served on the board of private and listed mining and exploration companies and has over 33 years’ international experience in the engineering and construction of mineral processing operations. Mr. Smith is currently Executive Director of Hong Kong listed company Dragon Mining Limited (HK 1712) (appointed 7 February 2014) and a Non-Executive Director of ASX listed companies Prodigy Gold NL (ASX:PRX) (appointed 29 November 2021), Tanami Gold NL (ASX:TAM) (appointed 27 November 2018), NICO Resources Limited (ASX:NC1) (appointed 29 April 2021), London Stock Exchange listed First Tin Plc (LSE:1SN) (appointed 11 July 2024), and an Alternate Director to the chairman of Mount Gibson Iron Limited (ASX:MGX) (appointed 19 November 2024). Mr. Smith was previously Executive Director and Deputy Chairman of Hong Kong listed company APAC Resources Limited (resigned 23 November 2023) and Non-Executive Director of ASX listed Elementos NL (resigned 26 May 2023). Independent Non-Executive Director – Mr Grahame White B. Eng (appointed 10 July 2020). Mr White is a construction and mining executive with comprehensive experience in Australia and Asia. Mr White is currently a non-executive director of ASX listed Macmahon Holdings Limited (ASX: MAH) (appointed 1 February 2024) and has held numerous executive management positions in the resources sector. Mr White has previously served on the Boards of Central West Rural, Forge Group Limited and the Queensland Resource Council. Mr White is Chairman of the Remuneration and Nominations Committee and a member of the Audit and Risk Committee. Independent Non-Executive Director – Mr Patrick O’Connor B.Com, FAICD (appointed Non-Executive Director 24 October 2019 and Non-Executive and Executive Chairman on 3 December 2019 and 17 December 2019, respectively. Reverted to Non-Executive Director on 10 July 2020). Mr O’Connor has significant experience as an independent Non-Executive Director and as a Chief Executive Officer. His experience spans across mining (gold, copper, lead, zinc and coal), oil & gas exploration, biotechnology and government utility sectors. Mr O’Connor is currently Non-Executive Chairman of FAR Limited (ASX: FAR) and Director of Sierra Rutile Holdings Limited (appointed on 1 September 2023), which has converted to a proprietary company following its acquisition by Leonoil Company Limited in September 2024. He was previously a Non-Executive Director and executive director of Red River Resources Limited (In Liquidation) appointed on 9 August 2022 and on 5 September 2022 respectively, which went into liquidation on 23 August 2023. Mr O’Connor is Chairman of the Audit and Risk Committee and a member of the Remuneration and Nomination Committee. 3 DIRECTORS’ REPORT (continued) 2. Key Management Personnel (continued) Chief Financial Officer – Mr Daniel Broughton – BCom, GradDipCA, MAICD (appointed 1 December 2020). Mr Broughton provides financial services under a separate service agreement between Dragon Mining Limited and Metals X. Mr Broughton has over 19 years’ experience with financial operations of listed mining companies. Mr Broughton is also the Chief Financial Officer of Dragon Mining Limited, a company listed on the Stock Exchange of Hong Kong Limited (Stock Code: 1712) and ASX listed company Tanami Gold NL (ASX: TAM). Mr Broughton graduated with a Bachelor of Commerce from Murdoch University, Western Australia in 2005 and obtained a Graduate Diploma of Chartered Accounting from The Institute of Chartered Accountants, Australia in 2010. 3. Directors’ Interests As at the date of this report, the relevant interests of the Directors in securities of the Company are: Directors Fully Paid Ordinary Shares Options Mr Peter Gunzburg - - Mr Brett Smith 250,000 - Mr Patrick O’Connor 1,000,000 - Mr Grahame White - - Total 1,250,000 - 4. Directors’ Meetings The number of meetings of Directors (including meetings of committees of Directors) held during the Reporting Period and the number of meetings attended by each Director was as follows: Directors Board Meetings Audit and Risk Committee Meetings Remuneration & Nomination Committee Meetings Eligible to attend Attended Eligible to attend Attended Eligible to attend Attended Mr Peter Gunzburg 5 5 2 2 1 1 Mr Brett Smith(1) 5 5 - 2 - - Mr Patrick O’Connor 5 5 2 2 1 1 Mr Grahame White 5 5 2 2 1 1 (1) Mr Brett Smith attended the Audit and Risk Committee meeting as an invitee. 5. Nature of Operations and Principal Activities The Company is a limited liability company and is domiciled and incorporated in Australia. The Company owns a 50% equity interest in the Renison Tin Operation (Renison) through its 50% stake in the Bluestone Mines Tasmania Joint Venture Pty Ltd (BMTJV) and comprises the Renison Tin Mine located 15km north- east of Zeehan on Tasmania’s west coast and the Mount Bischoff Project, placed on care and maintenance in 2010, which is located 80km north of Renison. The principal activities of the Group during the Reporting Period were: investment in a joint venture company operating a tin mine in Australia; and investments in companies undertaking exploration and development of tin, gold and base metals projects in Australia. There have been no significant changes in the nature of the Company’s activities during the Reporting Period. 4 DIRECTORS’ REPORT (continued) 6. Financial Results Overview The financial results overview is for the year ended 31 December 2024. The comparative reporting period is the year ended 31 December 2023. All financial and operational data in this report is the Company’s 50% equity interest in Renison, unless stated as ‘Renison (100% Basis)’. The Company achieved a total comprehensive income after income tax of $101.85 million (31 December 2023: $14.59 million). At 31 December 2024, Metals X closing cash at bank increased by $77.60 million to $220.64 million (31 December 2023: $143.04 million). Other key financial results for the Group include: Financial Results 12 months to 31 Dec 2024 $’000 12 months to 31 Dec 2023 $’000 Movement % (i) Revenue net of TC/RC $218,820 $153,781 42% (ii) Cost of sales $123,558 $105,155 18% (iii) Gross profit $95,262 $48,626 96% (iv) Other income $14,932 $9,597 56% (v) Fair value gain/(loss) on financial assets $20,179 ($23,637) (185%) (vi) Rehabilitation costs $5,958 $2,126 180% (vii) Income tax expense $17,878 $12,234 46% (viii) Cash flows from operating activities $143,567 $64,860 121% (ix) Cash flows used in investing activities ($55,453) ($32,650) 70% (x) Cash flows used in financing activities ($10,512) ($3,097) 239% (i) Revenue is derived from the Company’s 50% equity interest in Renison. During the Reporting Period, Renison shipped 5,551 tonnes (Metals X 50% share) of tin-in-concentrate (31 December 2023: 4,449 tonnes of tin-in-concentrate) to Metals X tin customers. The average LME 3-month tin price for the Reporting Period was US$30,290/t (2023: US$25,951/t). (ii) Cost of sales of $123.56 million (31 December 2023: $105.16 million) includes the following: royalty expense of $11.77 million (31 December 2023: $8.16 million) payable by Metals X on tin revenue driven by the increased tonnes produced and increased tin price; underground mining costs of $40.76 million (31 December 2023: $35.45 million); processing costs of $20.17 million (31 December 2023: $19.80 million); other Renison production costs of $11.58 million (31 December 2023: $9.61 million); and Renison employee costs of $25.04 million (31 December 2023: $21.55 million). Refer to note 5(a) of the consolidated financial statements for a detailed breakdown of the costs. (iii) An increase in tin revenue relative to cost of sales resulted in a gross profit margin of 43.53% for the year (31 December 2023: 31.62%). (iv) Other income of $14.93 million includes $8.40 million of interest income (31 December 2023: $7.09 million) on $145 million held in (3) 3-month term deposits, $1.44 million (31 December 2023: $1.44 million) as settlement of the 4% coupon payable under the terms of the convertible notes issued by Cyprium Metals Limited (Cyprium) (ASX: CYM) and $5.00 million (31 December 2023: nil) for the Cyprium convertible note extension fee.1 (v) Represents the fair value adjustment on the Company’s (4) convertible notes with a face value of $36.00 million to $37.40 million at year end (31 December 2023: $14.00 million), and a $3.63 million fair value adjustment write-down of the NICO options to nil (31 December 2023: $3.63 million). Refer to note 2 of the consolidated financial statements for valuation details and assumptions used. (vi) During the Reporting Period, the BMTJV engaged a third-party expert to update the 90% design and closure plan estimate for Mt Bischoff, resulting in an $11.92 million rehabilitation cost increase. At 31 December 2024, Metals X recognised $5.96 million being its 50% share of the rehabilitation cost increase through profit or loss. Refer to note 18 of the consolidated financial statements for further information. 1 Refer ASX Announcement 22 August 2024: Update on Cyprium convertible notes. 5 DIRECTORS’ REPORT (continued) 6. Financial Results Overview (continued) (vii) The Company recognised a tax expense for the year of $17.88 million (31 December 2023: tax expense $12.23 million). At 31 December 2024, an additional deferred tax asset (DTA) of $11.86 million has been recognised (31 December 2023: nil) which represents a proportion of the previously unrecognised fractional tax losses. This has had the effect of reducing tax expense for the current year. Refer to note 6 of the consolidated financial statements for further information. (viii) Record annual tin production, and high Australian dollar tin prices resulted in cash flows from operating activities of $143.57 million (31 December 2023: $64.86 million). (ix) Cash flows used in investing activities of $55.45 million (31 December 2023: $32.65 million) relate primarily to payments for investment in associate, First Tin Plc $13.04 million (31 December 2023: $1.79 million), property plant and equipment $17.42 million (31 December 2023: 13.04 million), mine properties & development $22.51 million (31 December 2023: $21.89 million), and a mutually beneficial loan of $1.93 million provided to BMTJV to finance the purchase of a new EPIROC MT65 underground mine truck (31 December 2023: nil). (x) Cash flows used in financing activities relate to $2.20 million payments for lease and hire purchase liabilities (31 December 2023: $3.10 million), and $8.31 million for the share buy-back (31 December 2023: nil). 7. Review of Operations Renison (50% Metals X) The Company owns a 50% interest in Renison through its 50% stake in the BMTJV. Renison is one of the world’s largest operating underground tin mines and Australia’s largest primary tin producer. Renison is the largest of three major skarn, carbonate replacement, pyrrhotite-cassiterite deposits within western Tasmania. The Renison Tin Mine area is situated in the Dundas Trough, a province underlain by a thick sequence of Neoproterozoic-Cambrian siliciclastic and volcaniclastic rocks. At Renison, there are three main shallow-dipping dolomite horizons which host replacement mineralisation. The major structure associated with tin mineralisation at Renison, the Federal Basset Fault, was formed during the forceful emplacement of the Pine Hill Granite during the Devonian and is also an important source of tin mineralisation. The Renison strategy is focussed on continuing to increase Mineral Reserves, net of depletion each year, to maintain significant mine life and to deliver higher cash margins through an increased mining rate, grade, and recovery, whilst continuing to seek productivity improvements and reduce costs. Health and safety performance (100% basis) During the Reporting Period, Renison reported two Lost Time Injuries (LTI’s) (31 December 2023: three). The overall Renison safety performance saw the LTIFR decrease to 1.8 (31 December 2023: 2.8). During the Reporting Period safety initiatives undertaken at Renison include: Implementation of installing dashcams in all mobile equipment. Redevelopment of the site Traffic Management Plan. Life Saving Rules were reviewed and updated, with a new supporting procedure created to enhance their implementation. A daily review by managers of all incidents and hazards has been implemented to enhance safety outcomes by focusing on all unwanted events. Incident investigation training has been delivered with a focus on evidence gathering, statements and interviewing. 6 DIRECTORS’ REPORT (continued) 7. Review of Operations (continued) Renison production performance summary (100% Basis) Physicals Unit 12 months to 31 Dec 2024 12 months to 31 Dec 2023 Movement Increase/(decr ease) Movement % change Ore mined t 801,193 778,638 22,555 2.90% Grade mined %Sn 1.91 1.65 0.26 15.76% Ore processed t 665,334 649,548 15,786 2.43% Grade of ore processed % S 2.12 1.92 0.20 10.42% Mill recovery % 77.93 76.27 1.66 2.18% Tin produced t 11,006 9,532 1,474 15.46% Mining focussed on developing Area 5, Central Federal Basset (CFB) and Leatherwood for a total of 6,168 metres of development (31 December 2023: 5,282 metres). Development of the Leatherwood and Area 5 declines progressed 839 metres during the Reporting Period (31 December 2023: 1,230 metres). Stope production came from Area 5, CFB and Leatherwood, with 655,434 tonnes of ore coming from ore stopes (31 December 2023: 686,902 tonnes) and the remaining 145,759 tonnes of ore coming from ore development (31 December 2023: 91,736 tonnes). Mined grade increased to 1.91% (31 December 2023: 1.65%) in line with the mine plan with ongoing access to the higher-grade Area 5 and Leatherwood stopes established. Grade of ore processed increased to 2.12% (31 December 2023: 1.92%) consistent with the increased grade of ore mined from Area 5 and Leatherwood. Mill recovery continued to improve with the continuation of the enhancement programs within the plant, encompassing various initiatives to boost both recovery rates and throughput capacity. Mill recovery increased to 77.93% (31 December 2023: 76.27%). Renison achieved a record annual production of 11,006 tonnes of tin-in-concentrate for the year ended 31 December 2024 (31 December 2023: 9,532 tonnes). The increase can be attributed to the following three key factors: 1. increased ore processed tonnes; 2. higher milled grade; and 3. improved mill recovery rates. Further details about the Renison’s production performance can be obtained from the Company’s quarterly announcements available at https://www.metalsx.com.au/quarterly-reports/ Capital Project Update Ventilation Upgrade The reaming of the final leg of the Leatherwood Return Air Raise between the 1980 and 1900 levels has been completed successfully ahead of schedule. Ventilation raise boring is now complete. Installation of ventilation doors, ventilation walls and relocation of booster fans will be completed during Q1 CY25. Design and procurement of the new ventilation fans for the Leatherwood Return Airway is ongoing. Primary fan installation works are scheduled for completion in CY2026. Mine Dewatering Fabrication of the new pumps has been finished and delivery of all 12 pumps completed. Manifold and Motor Control Centre fabrication is ongoing, with delivery expected in Q1 CY2025. Civil works are ongoing in the 1087 and 1525 pump stations. Rising main contractors are continuing to drill service holes, drainage holes and rising mains, with 550m drilled to date. Procurement and delivery of the stage 1 underground fibre optic communications system upgrade has been completed. Installation of the fibre backbone to the pump stations and 1525 underground switchroom will commence during Q1 CY2025. Surface Projects Construction of the tailings dam overhead powerline has been completed. Finalisation of the High Voltage (HV) energisation submission is ongoing. The current in-service date of the powerline is Q1 CY2025. 7 DIRECTORS’ REPORT (continued) 7. Review of Operations (continued) Surface Projects (continued) The repair and replacement of the lime silo roof was successfully completed during the November mill shut. The light vehicle wash bay drainage upgrades have been completed, with the wastewater now directed to the Contaminated Water Treatment Plant. Sitewide improvement projects are continuing with the fire water tank, mill ponds replacement, and site road improvements all commencing in Q1 CY2025. Rentails Project The Rentails Project is located adjacent to the Murchison Highway south of Lake Pieman, encompassing a significant geographical footprint within a 4,662 hectare consolidated mining lease. The Rentails Project made significant progress in 2024, particularly in regulatory approvals and environmental assessments, while continuing to refine technical aspects and maintain strong stakeholder relationships. Key activities during the Reporting Period included: The BMTJV committee resolved to carry forward the Low-Grade Concentrate Export option of Rentails to a pre-execution front-end engineering and definition (FEED) stage, for completion in parallel with environmental approvals in late 2026 leading to an FID. Scoping and planning of the pre-execution FEED stage for the project and progression of schedule critical activities to allow immediate commencement of the initial stage of the FEED in CY2025. Finalisation and submission of the Notice of Intent (NOI) to the Tasmanian Environmental Protection Agency (EPA). Finalisation and submission of Environment Protection and Biodiversity Conservation (EPBC) referral to Department Climate Change, Energy, the Environment and Water. Completion of furnace trials, geotechnical drilling, and ongoing refinement of the process flowsheet and plant layout. Continuous engagement with government agencies, local communities, and other key stakeholders throughout the Reporting Period. Near Mine Exploration During the Reporting Period, a total of 9,539 metres of exploration drilling was completed across various targets and programs. The drilling activities were primarily focused on the Ringrose area, Down Hole Electro Magnetic (DHEM) conductors from the 2023 EM survey, and Government Exploration Drilling Grant Initiative (EDGI) targets. Mineralisation at Ringrose, located about 750 metres south of existing development, was a key focus throughout the Reporting Period year. The mineralisation occurs over approximately 250 metres down dip and 300 metres strike length and remains open in all directions. All holes drilled at Ringrose consistently intersected significant sulphide mineralisation, with high-grade mineralisation interpreted to be associated with an east- west, south-dipping structure named Acacia. Several electromagnetic surveys were conducted or planned during the Reporting Period to guide future exploration efforts2. A surface fixed loop electromagnetic (FLEM) survey was successfully completed in the north-west Federal Fault area during Q2 CY20242. A comprehensive DHEM survey was initiated in Q3 CY2024 and completed in Q4 CY2024, with a total of 18 holes for 13,611 metres surveyed2. Additionally, the Dunkley FLEM survey commenced in Q4, with completion expected in early CY2025. The BMTJV actively participated in the Government EDGI, with preparation and drilling activities for two EDGI targets, Tunnel Hill and DC Target, progressing throughout the Reporting Period. An additional EDGI grant was successfully awarded to drill test a coinciding magnetic, geochemical target at Argent Dam, with drilling expected to commence in Q2 CY2025. Looking ahead, the Company plans to continue Ringrose infill and extension drilling into CY2025. The Dunkley's/E-Dam FLEM survey and sterilisation drilling program are scheduled for completion in Q1 CY2025. Furthermore, an application for a new exploration lease covering 33km² of prospective ground immediately adjacent to the eastern boundary of the existing Renison mining lease was submitted, with a grant decision expected by Q3 CY2025. 2 Refer ASX announcements 24 April 2024, 24 June 2024 and 18 November 2024, Ringrose Exploration Update 8 DIRECTORS’ REPORT (continued) 7. Review of Operations (continued) Near Mine Exploration (continued) During the Reporting Period, the exploration program demonstrated a strong commitment to expanding the resource base and identifying new mineralisation opportunities. The consistent positive results from Ringrose and the strategic use of electromagnetic surveying techniques have laid a solid foundation for future exploration success. Mine Resource Drilling Program A comprehensive underground drilling program was executed, totalling 61,713 metres of drilling. The program focused on both grade control and resource definition drilling across various locations within the mine. Throughout the Reporting Period, the drilling program maintained a balanced focus on both grade control and resource definition. Key areas of consistent activity included various levels of Area 5, Leatherwood, Huon North, Regnans, South Basset, Central Federal Basset and Waratah. This strategic approach ensured ongoing refinement of the mine's resource model while supporting immediate production needs. Mt Bischoff Project After being placed on care and maintenance in 2010, the mine is now undergoing approval for rehabilitation and closure with the draft closure plan submitted to the EPA on 29 November 2024. During the Reporting Period, the BMTJV engaged a third party expert to update the 90% design and closure plan estimate for Mt Bischoff resulting in an increase in closure costs. Please refer to note 6 Financial Result Overview of the directors’ report for further information. The Mt Bischoff Mine Closure represents a landmark commitment to responsible mine closure in Tasmania. The BMTJV has ensured a sustainable and compliant closure through progressive rehabilitation, stakeholder engagement, and innovative waste and water management solutions. The project aligns with industry practice ESG frameworks, demonstrating transparency, environmental responsibility, and social accountability while setting a benchmark for future mine closures in Australia. Renison Ore Reserve and Life of Mine update Metals X announced its updated 2024 Renison Ore Reserve Update3 highlighting an approximate 10 year mine life with the bulk of ore mined from the high-grade Area 5 and Leatherwood ore bodies. Total Renison Bell Proved and Probable Reserve is 8.21 Mt at 1.37% Sn for 112,200 tonnes of contained tin. The 2024 Renison Mineral Resource update4 on which the ore reserve is based highlighted total measured, indicated and inferred resource at Renison Bell of 20.2 Mt at 1.45% Sn for 291,000 tonnes of contained tin. 8. Corporate Investments – Convertible Notes, Shares and Options (i) First Tin PLC Metals X acquired a total of 135,166,667 shares in First Tin Plc (First Tin) (LSE:1SN) representing 29.91% of First Tin’s issued capital for a cumulative investment of £6.67 million (approximately A$13.04 million). The investment in First Tin is presented as an investment in an associate at note 11 in the consolidated financial statements. The acquisition provides exposure to First Tin's advanced-permitting, low-risk Australian tin project. Metals X nominated Peter Gunzburg and Brett Smith to First Tin's board. Further details on the activities of First Tin are available from their website www.firsttin.com. 3 Refer ASX announcement 31 January 2025, Renison Ore Reserve Update 4 Refer ASX announcement 4 July 2024, Renison Mineral Resource update 9 DIRECTORS’ REPORT (continued) 8. Corporate (continued) Investments – Convertible Notes, Shares and Options (ii) Cyprium Metals Limited Metals X has previously announced that the terms of the $36.00 million in convertible notes were amended and agreed with Cyprium Metals Limited (Cyprium) (ASX: CYM).5 The key revised terms of the convertible notes are as follows: a three-year maturity extension to 31 March 2028; a $5.00 million amendment fee payable to the Company in two equal instalments of $2.50 million each with the first instalment received during Q3 CY2024. The second instalment was received during Q4 CY2024; the conversion price will be amended to a 25% premium to the share price at which Cyprium next raises equity capital. On 20 December 2024, Cyprium announced the completion of the first tranche of an equity placement, in which it issued new shares at $0.028 per share. The convertible notes can be converted by Metals X at the conversion price of $0.035, being a 25% premium to the share price at which Cyprium first raises equity capital following the amendment to the terms; the convertible notes can be redeemed early at Cyprium’ s option through payment equal to 115% of their face value. In the event of an early redemption, Metals X can at its sole option select to take repayment by being issued Cyprium shares at the conversion price rather than receiving cash repayment. The amended terms of the convertible notes have been set such that upon an early redemption, Metals X will be able to elect to take consideration of a maximum of 200 million shares, with the balance to be paid in cash; an annual coupon of 6% per annum to be capitalised and paid in cash semi-annually on 31 March and 30 September; and Cyprium will issue Metals X an additional 40.6 million options, with a two-year expiry and an exercise price set at 25% premium to the next capital raise. The exercise price has been set at $0.035, being a 25% premium to the share price at which Cyprium first raises equity capital following the amendment to the terms. At 31 December 2024, the Cyprium convertible notes were fair valued at $37.40 million (31 December 2023: $14.00 million) resulting in a fair value adjustment of $23.40 million. Refer to notes 2 and 12 for further details on the convertible notes valuation. Further details on the activities of Cyprium are available from their ASX releases. (iii) Nico Resources Limited Following completion of the sale of the Company’s Nickel Asset portfolio to Nico Resources Limited (NICO) (ASX: NC1) and subsequent IPO, the Company received 21,100,000 fully paid ordinary shares (NICO Shares) and 25,000,000 Options (NICO Options). The investment in NICO is presented as an investment in an associate at note 11 in the consolidated financial statements. At 31 December 2024, the Company holds 9,240,000 NICO shares, representing an 8.44% interest in NICO. The 25,000,000 NICO Options, expired out of the money on 3 November 2024. The Company is entitled to a 1.75% net smelter royalty on all metals produced from both the Wingellina Nickel- Cobalt Project and the Claude Hills Project once in production. Further details on the activities of NICO are available from their ASX releases. (iv) Tanami Gold NL At 31 December 2024, the Company holds approximately 34.43 million shares in Tanami Gold NL (Tanami Gold) (ASX:TAM), representing 2.93% of the shares on issue. The investment in Tanami Gold is presented as an investment in associates in note 11 in the consolidated financial statements. Further details on the activities of Tanami Gold are available from their ASX releases. 5 Refer ASX Announcement 22 August 2024: Update on Cyprium convertible notes. 10 DIRECTORS’ REPORT (continued) 8. Corporate (continued) On-market share buy-back On 1 March 2024, the Company announced its intention to undertake an on-market share buy-back (share buy-back) for up to 10% of the Company’s issued capital over a 12-month period commencing 19 March 2024, as part of the Company’s capital management strategy. During the Reporting Period, Metals X has repurchased 20,874,529 shares, equivalent to 2.30% of the shares on issue, for a total cost of $8.31 million (inclusive of transaction costs). All repurchased Company shares have been cancelled. Unsolicited approach to Greentech On 24 October 2024, Metals X made an unsolicited approach to Hong Kong listed company Greentech Technology International Limited (Stock Code: 195) (Greentech) to acquire all of the issued shares of Greentech for a price of HK$0.28 per Share (approximately A$0.06 per Share) and to cancel all outstanding options for an equivalent price (Offer), subject to compliance with the Hong Kong Code on Takeovers and Mergers. The Offer is conditional on Metals X completing financial due diligence. Metals X advises that, to date, Greentech has not engaged with the offer. Greentech, via a wholly owned subsidiary, holds an 82% interest in YT Parksong Australia Holdings Pty Ltd (YT Parksong). YT Parksong and Metals X each hold a 50% interest in the BMTJV, which holds the assets that comprise the Renison Tin Operations. 9. Business Risks The Group faces operational risks on a continuing basis. The Company has adopted policies and procedures designed to manage and mitigate those risks wherever possible. However, it is not possible to avoid or even manage all possible risks. Some of the operational risks are outlined below but the total risk profile, both known and unknown, is more extensive. Financial risks are discussed in note 2 of the consolidated financial statements. Safety Serious workplace accidents or significant equipment failures may lead to harm to the Group’s employees or other persons; temporary stoppage or closure of an operating mine; delays to production schedules and disruption to operations; with material adverse impact on the business. The Company continues to work closely with all stakeholders to promote continuous safety improvements and Occupational Health and Safety (OH&S), with due consideration to evolving scientific knowledge and technology, management practices and community expectations. The Group ensures it maintains compliance with the applicable laws, regulations, and standards of the countries, it operates in by: improving and monitoring OH&S performance; training and ensuring its employees and contractors understand their obligations and are held accountable for their responsibilities; communicating and openly consulting with employees, contractors, government, and the community on OH&S issues; and developing risk management systems to appropriately identify, assess, monitor, and control hazards in the workplace. Production The Group’s tin revenue for the Reporting Period came from the BMTJV. The process recovery rate and production costs are dependent on many technical assumptions and factors, including the geological, physical, and metallurgical characteristics of ores. Any change in these assumptions and factors may have an adverse effect on the Group’s production volume or profitability. Actual production may vary from expectation for a variety of reasons, including grade and tonnage. Plant breakdown or availability and throughput restraints may also affect the operation. 11 DIRECTORS’ REPORT (continued) 9. Business Risks (continued) Permitting The Group may encounter difficulties in obtaining all permits necessary for its exploration, evaluation, and production activities at its existing operations or for pre-production assets. It may also be subject to ongoing obligations to comply with permit requirements, which can incur additional time and costs. Social and Political The Group may face opposition from groups or individuals opposed to mining generally, or to specific projects, resulting in delays or increased costs. Such opposition may also have adverse effects on the political climate generally. The Group is exposed to other risks which include, but are not limited to, cyber-attack, and natural disasters, that could have varying degrees of impact on the Group and its operating activities. Where available and appropriate to do so, the Board will seek to minimise exposure using insurance, while actively monitoring the Group’s ongoing exposure. In addition, the Group’s awareness of the risks from political and economic instability have been heightened by ongoing and recent geo-political events, which have contributed to an increase in the costs of some key inputs. 9. Dividends No dividends were paid to members during the Reporting Period (31 December 2023: nil). The Directors do not propose to pay any dividend for the year. 10. Unissued Shares under Options During the Reporting Period, no options were forfeited due to performance criteria not being achieved or cessation of employment. As at the date of this report, there are no ordinary unissued shares under option (31 December 2023: nil). There were no shares issued under options in the Company since the Reporting Period. 12. Significant Events After Balance Date There are no significant events after balance date as at the date of this report. 13. Business Strategies, Prospects and Capital Allocation The Company continues to evaluate potential acquisitions both domestically and internationally. The principal focus of the Company is tin; however, the Board has reviewed and will continue to review analogous base metal and gold opportunities that possess geological similarities or geographical synergies. In an effort to increase our position in the tin market, Metals X acquired a total of 135,166,667 shares in First Tin representing a holding of 29.91% of First Tin’s issued capital at year end. In addition to its shareholding, Metals X has two director seats on the board providing the Company with a direct impact in the strategic direction and decision-making process of First Tin. The investment in First Tin provides the Company with exposure to First Tin's advanced-permitting, low-risk Australian tin project. Metals X has previously announced that it had made an unsolicited approach to acquire all of the issued shares in BMTJV partner Greentech, subject to other terms and conditions. This strategic initiative, if successful, could effectively increase our interest in Renison from 50% to 91%. The proposed acquisition aligns with our strategy to strengthen our position in the tin industry. The implementation of the on-market share buy-back during the year, confirmed the Board’s confidence in the Company’s strong balance sheet and aligns with our focus on balancing retained earnings for growth and potential acquisitions along with shareholder returns. During the Reporting Period, Metals X has repurchased and cancelled 20,874,529 shares, equivalent to 2.30% of the shares on issue for a total cost of $8.31 million (inclusive of transaction costs). Refer to Note 8 Corporate of the directors’ report for further information. As part of the Company’s capital management strategy, the 12-month on-market share buy-back commitment is expected to be renewed for 2025. The Company is committed to supporting the BMTJVs progress on Rentails. While the funding structure for the Rentails Project has not been finalised, the Company continues to build its cash reserves to ensure it can meet its potential funding commitments for the Rentails Project. The Company is committed to optimising returns from its financial instruments and shareholdings in NICO, Cyprium and Tanami Gold. 12 DIRECTORS’ REPORT (continued) 14. Environmental, Social and Governance The Company owns a 50% interest in Renison, through its 50% stake in the BMTJV, which is subject to the relevant environmental protection legislation (Commonwealth and State legislation). The Group holds various environmental licenses issued under these laws, to regulate its mining and exploration activities in Australia. These licenses include conditions and regulations in relation to specifying limits on discharges into the air, surface water and groundwater, rehabilitation of areas disturbed during mining and exploration activities and the storage of hazardous substances. The Board retains overall responsibility for the Group’s Environmental, Social and Governance (ESG) performance and is committed to operating in a manner that contributes to the sustainable development of mineral resources through efficient, balanced, long-term management, while showing due consideration for the well-being of people; protection of the environment; and development of local community. The Group recognises its responsibility for minimising the impact of its activities on, and protecting, the environment. The Group is committed to developing and implementing sound practices in environmental design and management and actively operates to: work within the legal permitting framework and operate in accordance with our environmental management systems; identify, monitor, measure, evaluate and minimise our impact on the surrounding environment; give environmental aspects due consideration in all phases of the Groups mining projects, from exploration through to development, operation, production, and final closure; and act systematically to improve the planning, execution, and monitoring, of its environmental performance. There have been no material breaches of the Group’s licenses and all mining and exploration activities have been undertaken in compliance with the relevant environmental regulations. The Company’s has established an ESG Reporting framework consisting of five commitments developed “with reference to” the Global Reporting Initiative Standards (GRI) (Foundation 2021) (GRI Standards) which have been endorsed by the Board. The Company’s 2024 ESG Report will be announced with the 31 December 2024 annual report, and made available on the Company’s website at https://www.metalsx.com.au/environment-social-and-governance/. 15. Corporate Governance In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the Company support and have adhered to the principles of Corporate Governance. The Company’s 2024 corporate governance statement is available at https://www.metalsx.com.au/aboutus/corporate-governance/. 13 DIRECTORS’ REPORT (continued) 16. Remuneration Report - Audited The Directors of Metals X present the Remuneration Report (the Report) for the Reporting Period. This Report forms part of the Directors’ Report and has been audited in accordance with section 300A of the Corporations Act 2001 and its regulations. This report details the remuneration arrangements for the Company’s Key Management Personnel (KMP) defined as those who directly or indirectly, have authority and responsibility for planning, directing, and controlling the major activities of the Group, including any Director (whether executive or otherwise) and Executives of the Company. The table below outlines the KMP of the Company and their movements during the Reporting Period: Name Position Term as KMP Mr Peter Gunzburg Independent non-executive Chairman Full financial year Mr Brett Smith Executive director Full financial year Mr Patrick O’Connor Independent non-executive director Full financial year Mr Grahame White Independent non-executive director Full financial year Mr Daniel Broughton Chief financial officer Full financial year There were no other changes to KMP during the Reporting Period. 16.1 Remuneration Policy The Board recognises that the Company’s performance depends upon the quality of its Directors and Executives. To achieve its financial and operating activities, the Company must attract, motivate, and retain highly skilled Directors and Executives. The Company embodies the following principles in its remuneration framework: provides competitive rewards to attract high calibre Directors and Executives; structures remuneration at a level that reflects the Executive’s duties and accountabilities and is competitive within Australia; benchmarks remuneration against appropriate industry groups; and aligns Executive incentive rewards with the creation of value for shareholders. Performance related Executive remuneration, including cash bonuses, are based on the Company’s and individual performance, and are determined at the Board’s discretion. 16.2 Company Performance The table below shows the Company’s financial performance over the last five reporting periods. Performance summary 31 Dec 2024 31 Dec 2023 6 months to 31 Dec 2022 30 Jun 2022 30 Jun 2021 Closing share price $0.42 $0.29 $0.39 $0.34 $0.21 Profit per share from operations (cents per share) 11.34 1.61 1.10 19.44 2.53 Net assets per share6 $0.48 $0.37 $0.35 $0.34 $0.15 Total shareholder return 43% (25%) 15% 62% 172% Dividend paid per share - - - - - 6 Net assets per share is impacted by the decrease in shares on issue as a result of the share buy-back. Refer to note 20 of the notes to the consolidated financial statements for further information. 14 DIRECTORS’ REPORT (continued) 16. Remuneration Report – Audited (continued) 16.3 Remuneration and Nomination Committee Responsibility The Remuneration and Nomination Committee (the Remuneration Committee) is a subcommittee of the Board and is responsible for making recommendations to the Board on KMP remuneration, and the KMP remuneration framework and incentive plan policies. The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of KMP on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high performing KMP. To ensure the Remuneration Committee is fully informed when making remuneration decisions, it can seek external remuneration advice. External consultants were utilised during the Reporting Period. 16.4 Remuneration of Non-Executive Directors The Company’s Non-Executive Director fee policy is designed to attract and retain high calibre directors who can discharge the roles and responsibilities required in terms of good governance, strong oversight, independence, and objectivity. The Company’s Constitution and the ASX listing rules specify that the aggregate remuneration of Non- Executive Directors, shall be approved periodically by shareholders. The last determination was at the Annual General Meeting (AGM) held on 26 November 2014 when shareholders approved an aggregate fee pool of $600,000 per year. The amount of the remuneration paid to Non-Executive Directors is reviewed annually, within the aggregate fee pool limit approved by shareholders. 16.5 Remuneration of Executives In determining Executive remuneration, the Remuneration Committee aims to ensure that remuneration practices are: competitive and reasonable; enabling the Company to attract and retain high calibre talent; aligned to the Company’s strategic and business objectives and the creation of shareholder value; transparent and easily understood; and acceptable to shareholders. The Company’s approach to remuneration ensures that remuneration is competitive, performance-focused, clearly links appropriate reward with desired business performance, and is simple to administer and understand by Executives and shareholders. 16.6 Executive Remuneration Structure The Company’s remuneration structure provides for a combination of fixed and variable pay with the following components fixed remuneration and short-term incentives (STI). The Company does not currently consider the issue of long-term incentive (LTI) to Directors and Executives to be appropriate. 16.7 Fixed Remuneration Fixed remuneration consists of base salary, superannuation and other non-monetary benefits designed to reward for: the scope of the Executive’s role; the Executive’s skills, experience, and qualifications; and individual performance. 16.8 Performance Linked Compensation – STI The Executive Director and Executives may have an STI component included in their remuneration package representing a meaningful “at risk” STI payment. The payment will be “at risk” in that it will only be payable if a set of clearly defined and measurable performance metrics or Key Performance Indicators (KPI) have been met in the applicable performance period. The KPI’s may include a combination of company KPI’s and individual KPI’s. The Board must set KPI’s that are based on metrics that are measurable, transparent, and achievable, designed to motivate and incentivise the recipient to achieve high performance, and are aligned with the Company’s short-term objectives and shareholder value creation. The board retains discretion to assess performance during the period. 15 DIRECTORS’ REPORT (continued) 16. Remuneration Report – Audited (continued) 16.8 Performance Linked Compensation – STI (continued) Under the STI plan, Executives have the opportunity to earn an annual incentive award which is delivered in cash. The STI recognises and rewards annual performance. How is it paid? The STI, if achieved, will be paid annually in cash depending on the eligible employee’s employment contract. STI opportunities will vary from employee to employee depending on role and responsibility and will be set out in Executives employment contract. How much can Executives earn? The maximum STI award for the Executive Director for the Reporting Period is $325,000 and represents 67% of the total fixed remuneration (TFR) being subject to performance related criteria. How is performance measured? A combination of personal and business KPIs are chosen to reflect the core drivers of short-term performance and also to provide a framework for delivering sustainable value to the Group and its shareholders. Robust threshold, target and maximum targets are established for all KPIs to drive high levels of personal and business performance. The annual budget generally forms the basis for the target performance set by the Board. The specific KPIs and weightings may change from year to year to best reflect the priorities and critical success factors of the Company. When is it paid? The STI award is determined after the end of the performance period following a review of performance over the period against the STI performance measures at the discretion of the Remuneration Committee. The Board approves the final STI award based on this assessment of performance and the award is paid in cash up to three months after the end of the performance period. What happens if an Executive leaves? Where an Executive ceases to be an employee of the Group: • due to resignation or termination for cause, before the end of the performance period, no STI is awarded for that year; or • due to redundancy, ill health, death, or other circumstances approved by the Board, the Executive will be entitled to a pro-rata cash payment based on assessment of performance up to the date of ceasing employment for that period. • unless the Board determines otherwise. What happens if there is a change of control? In the event of a change of control, a pro-rata cash payment will be made based on assessment of performance up to the date of the change of control (subject to Board discretion). 16 DIRECTORS’ REPORT (continued) 16. Remuneration Report – Audited (continued) 16.8 Performance Linked Compensation – STI (continued) The STI award threshold for the Executive Director and Executives are subject to annual review of the Board of Directors. KPIs will be set annually as part of the annual business planning cycle and are targeted to be finalised no later than the 31 January of each calendar year as follows: KPI’s for the Company and Executive Director are set and approved by the Board; KPI’s will be reviewed by the Board to ensure that hurdles are objectively measurable and aligned with Company strategy; KPI achievement may be subject to ‘gate way’ tests as itemised for a particular KPI (for example, irrespective of performance, a safety KPI will not be deemed achieved in the event that the Company experiences a fatality); and discretionary bonus for senior executives are set by the Executive Director and approved by the Board. KPI Targets and Stretch Targets will generally align with the Company’s strategic plan and may include health, safety, and environmental metrics, financial metrics, delivery of projects and growth initiatives, sustainability initiatives and improvements to Company systems and processes. KPI Targets are not the same as Budget Targets. Philosophically, employees are paid their TFR for delivering budget performance and are paid at risk compensation for delivering better than budget performance. Stretch performance should be a level beyond this. Targets and Stretch Targets will be developed as part of the Annual Business Planning Cycle. The Board is responsible for the determination of whether the KPI Targets or Stretch Targets have been achieved and how much of the STI will be payable for each performance period. In making such determination it may obtain external expert advice. STI Performance and outcomes for the Reporting Period: Key Performance Indicators Performance Measure Value (% STI) Actual Result Safety Total Reportable Injury Frequency Rate (TRIFR) Fatalities Less Than 7 > zero 10% Total STI equal zero 9.1 Zero Zero N/A Renison Operations (100% basis) Tin Production Cash Production Cost Free cashflow to MLX > 10,895t +/- 10% < $15,672/t +/- 10% Greater than A$50M +/- 10% 20-40% at board discretion 20-40% at board discretion 15-25% at board discretion 11,006 t $17,288 / t A$158M 30% 20% 25% Corporate Improve the Company’s optionality Identifying and monitoring strategic opportunities 10% 29.91% ownership of First Tin 10% Consequently, the Remuneration Committee recommended the following remuneration for the Executive Director for the year: Total Fixed Remuneration: $486,000 Maximum STI: $325,000 (being 67% Total fixed remuneration) Awarded STI: $276,250 (being 85% of the maximum available STI) 17 DIRECTORS’ REPORT (continued) 16. Remuneration Report – Audited (continued) 16.9 Executive Employment Arrangements and Service Contracts Compensation and other terms of employment for KMP are formalised in contracts of employment. The major provisions of each of the agreements relating to compensation are set out below. The Company may terminate employment agreements immediately for cause, in which the executive is not entitled to any payment other than the value of fixed remuneration and accrued leave entitlements up to the termination date. Name Fixed Remuneration Maximum variable STI Super- annuation7 Notice period (months) Maximum termination payment (months) Directors Mr Peter Gunzburg $125,000 - 11.5% - - Mr Brett Smith $486,000 $325,000 11.5% 6 6 Mr Patrick O’Connor $80,000 - 11.5% - - Mr Grahame White $90,000 - 11.5% - - Executives Mr Daniel Broughton1 $118,788 - 11.5% 1 1 1 Mr Daniel Broughton provides Chief Financial Officer services under a separate service agreement between Dragon Mining Limited and Metals X. 16.10 Equity Instruments No options over ordinary shares in the Company were granted as compensation to KMP during the Reporting Period and no options vested during the Reporting Period. 16.11 Modifications of Terms of Equity-Settled Share-Based Payment Transactions No terms of equity-settled share-based payment transactions (including options and rights granted as compensation to KMP) have been altered or modified by the issuing entity during the Reporting Period. 16.12 Exercise of Options Granted as Compensation During the Reporting Period, no shares were issued on the exercise of options previously granted as compensation to KMP. 16.13 Analysis of Options and Rights Over Equity Instruments Granted as Compensation No options have been issued, granted, or will vest to KMP personnel of the Company. 16.14 Analysis of movements in options and rights There were no options granted during the Reporting Period. 16.15 Shareholdings of Directors and Key Management Personnel Ordinary Fully Paid Shares Balance 1 Jan 2024 Granted as Remuneration Net Change Other Balance 31 Dec 2024 Directors Mr Peter Gunzburg - - - - Mr Brett Smith 250,000 - - 250,000 Mr Patrick O’Connor 1,000,000 - - 1,000,000 Mr Grahame White - - - - Executives Mr Daniel Broughton - - - - Total 1,250,000 - - 1,250,000 7 The superannuation guarantee rate increased from 11% to 11.5% on 1 July 2024. 18 16.16 Directors and Executive Officers Remuneration The following table details the components of remuneration for KMP of the Company, for the year ended 31 December 2024 Short-Term Long-Term Benefits Post- Employment Share Based Payments Total Emoluments Proportion of Remuneration Performance Related In dollars Salary & Fees Non-Monetary Benefits STI and Bonuses Employee Entitlements Super- annuation Benefits Options Termination Payments Directors AUD AUD AUD AUD AUD AUD AUD AUD % Mr Peter Gunzburg Dec 2024 125,000 - - - 14,063 - - 139,063 - (Non-Executive Chairman) Dec 2023 110,000 - - - 11,825 - - 121,825 - Mr Brett Smith Dec 2024 486,000 - 276,250 18,552 86,444 - - 867,246 32% (Executive Director) Dec 2023 467,500 - 204,750 34,375 72,473 - - 779,098 26% Mr Grahame White Dec 2024 90,000 - - - 10,125 - - 100,125 - (Non-Executive Director) Dec 2023 90,000 - - - 9,675 - - 99,675 - Mr Patrick O'Connor Dec 2024 80,000 - - - 9,000 - - 89,000 - (Non-Executive Director) Dec 2023 80,000 - - - 8,600 - - 88,600 - Total all specified Directors Dec 2024 781,000 - 276,250 18,552 119,632 - - 1,195,434 23% Dec 2023 747,500 - 204,750 34,375 102,573 - - 1,089,198 19% Specified Executives Mr Daniel Broughton 1 Dec 2024 118,788 - 14,000 - - - - 132,788 11% (Chief Financial Officer) Dec 2023 123,197 - 20,000 - - - - 143,197 14% Total all named Executives Dec 2024 118,788 - 14,000 - - - - 132,788 11% Dec 2023 123,197 - 20,000 - - - - 143,197 14% Total all specified Directors and Executives Dec 2024 899,788 - 290,250 18,552 119,632 - - 1,328,222 22% Dec 2023 870,697 - 224,750 34,375 102,573 - - 1,232,395 19% 1 Mr Daniel Broughton provides Chief Financial Officer services under a separate service agreement between Dragon Mining Limited and Metals X. Mr Daniel Broughton received a discretionary non-variable bonus for the year ended 31 December 2024. 19 DIRECTORS’ REPORT (continued) 17. Indemnification and Insurance of Directors, Officers, and Auditors The Company provides Directors’ and Officers’ liability insurance covering Directors’ and Officers of the Company against liability in their role with the Company, except where: the liability arises out of conduct involving a wilful breach of duty; or there has been a contravention of Sections 232(5) or (6) of the Corporations Act 2001. The Directors’ have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of this insurance, as such disclosure is prohibited under the terms of the contract. To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since year end. 18. Lead Auditor’s Independence Declaration The Directors have received confirmation from the auditor of Metals X that they are independent of the Company. A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is included on page 64 of this report. 19. Non-Audit Services The following non-audit services were provided by the entity’s auditor, Ernst & Young. The Directors are satisfied that the provision of non-audit is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised. Ernst & Young received or are due to receive the following amounts for the provision of non-audit services (refer to note 23 of the consolidated financial statements): Tax compliance services $0.047 million. 20. Rounding The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (unless otherwise stated), and where noted ($’000) under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors Report) Instrument 2016/191. The Company is an entity to which the instrument applies. Signed in accordance with a resolution of the Directors. Brett Smith Executive Director 27 February 2025 20 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2024 Notes 31 Dec 2024 $'000 31 Dec 2023 $'000 Revenue 3 218,820 153,781 Cost of sales 5(a) (123,558) (105,155) Gross profit 95,262 48,626 Other income 4 14,932 9,597 General and administrative expenses 5(b) (2,744) (3,804) Finance costs 5(c) (566) (877) Fair value gain/(loss) on financial assets 5(d) 20,179 (23,637) Share of loss of associates 11 (878) (960) Rehabilitation costs 18 (5,958) (2,126) Profit before tax 120,227 26,819 Income tax expense 6 (17,878) (12,234) Profit for the period 102,349 14,585 Attributable to: Equity holders of the parent 102,349 14,585 Other comprehensive loss: Share of other comprehensive loss of an associate 11 (500) - Total comprehensive income for the year 101,849 14,585 Attributable to: Equity holders of the parent 101,849 14,585 Basic earnings and diluted earnings per share attributable to the ordinary equity holders of the parent (cents per share) From operations 7 11.34 1.61 21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2024 At 31 Dec 2024 At 31 Dec 2023 Notes $'000 $'000 Current assets Cash and cash equivalents 8 220,644 143,042 Trade and other receivables 9 8,666 15,686 Inventories 10 37,573 28,591 Prepayments 2,200 1,604 Convertible notes receivable 12 2,160 1,080 Derivative financial instruments 12 406 3,625 Total current assets 271,649 193,628 Non-current assets Other receivables 9 3,888 3,457 Convertible notes receivable 12 35,242 12,923 Investment in associates 11 14,039 2,374 Property, plant, and equipment 13 82,510 74,084 Mine properties and development 14 85,387 79,811 Exploration and evaluation expenditure 15 3,888 352 Deferred tax asset 6 8,429 26,307 Total non-current assets 233,383 199,308 Total assets 505,032 392,936 Current liabilities Trade and other payables 16 20,972 16,400 Contract liability 17 11,931 - Provisions 18 7,309 6,407 Interest bearing liabilities 19 3,645 4,030 Total current liabilities 43,857 26,837 Non-current liabilities Provisions 18 30,893 27,539 Interest bearing liabilities 19 2,508 4,327 Total non-current liabilities 33,401 31,866 Total liabilities 77,258 58,703 Net assets 427,774 334,233 Equity Issued capital 20 311,262 319,570 Accumulated profit/(losses) 21 89,197 (13,152) Share of other comprehensive loss of associates 11 (500) - Share based payments reserve 22 27,815 27,815 Total equity 427,774 334,233 22 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2024 Notes 31 Dec 2024 $'000 31 Dec 2023 $'000 Cash flows from operating activities Receipts from customers 237,620 149,162 Payments to suppliers and employees (108,380) (90,848) Interest received 9,565 6,846 Receipts for Cyprium convertible notes extension fee 5,000 - Other receipts 76 38 Interest paid (314) (338) Net cash flows from operating activities 8 143,567 64,860 Cash flows from investing activities Payments for property, plant, and equipment (17,425) (13,035) Payments for mine properties and development (22,511) (21,891) Payments for exploration and evaluation (999) - Payments for investment in associates (13,044) (1,794) Loan provided to BMTJV (1,927) - Repayment received from BMTJV 434 - Proceeds from sale of property plant and equipment 19 70 Proceeds from sale of investment in associates - 4,000 Net cash flows used in investing activities (55,453) (32,650) Cash flows from financing activities Payment of lease and hire purchase liabilities (2,204) (3,097) Payments for share buy-back (8,308) - Net cash flows used in financing activities (10,512) (3,097) Net increase in cash and cash equivalents 77,602 29,113 Cash at the beginning of the period 143,042 113,929 Cash and cash equivalents at the end of the period 8 220,644 143,042 23 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2024 Issued capital Accumulated profit/(loss) Share based payments reserve Accumulated OCI Total Equity $'000 $'000 $'000 $'000 $'000 At 1 January 2023 319,570 (27,737) 27,815 - 319,648 Profit for the year - 14,585 - - 14,585 Total comprehensive profit for the Reporting Period - 14,585 - - 14,585 At 31 December 2023 319,570 (13,152) 27,815 - 334,233 At 1 January 2024 319,570 (13,152) 27,815 - 334,233 Profit for the Reporting Period - 102,349 - 102,349 Share of OCI of associates - - - (500) (500) Return of capital (share buy-back)8 (8,308) - - - (8,308) At 31 December 2024 311,262 89,197 27,815 (500) 427,774 8 On 1 March 2024, the Company announced it will undertake an on-market share buy-back (share buy-back) for up to 10% of the Company’s issued capital over a 12-month period commencing 19 March 2024. 24 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 1. Corporate Information and Summary of Material Accounting Policies The consolidated financial report of Metals X Limited (“Metals X” or the “Company”) for the year ended 31 December 2024 was authorised for issue in accordance with a resolution of the Directors on 27 February 2025. The Company is incorporated and domiciled in Australia and is a for profit company limited by shares which are publicly traded on the Australian Securities Exchange. The consolidated financial statements comprise the financial statements of the Parent and its subsidiaries (the Group). Both the functional and presentation currency of the Group is Australian dollars (A$). The Company’s registered office address is Unit 202, Level 2, 39 Mends Street, South Perth WA 6151. a) Basis of preparation of the consolidated financial report The consolidated financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The Company’s consolidated financial report is for the year ended 31 December 2024 (the Reporting Period). The comparative reporting period is for the 12 months ended 31 December 2023. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has recognised its share of jointly held assets, liabilities, revenues, and expenses of joint operations. These have been incorporated in the consolidated financial statements under the appropriate classifications. The consolidated financial report has been prepared on a historical cost basis, except for certain financial instruments measured at fair value through profit and loss. The amounts contained in the consolidated financial statements have been rounded to the nearest thousand dollars unless otherwise stated (where rounding is applicable) under the option available to the Group under ASIC Corporations (Rounding in Financial Report) Instrument 2016/191. b) Statement of compliance The consolidated financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. c) New and amended accounting standards and interpretations The Group has adopted all Accounting Standards and Interpretations effective from 1 January 2024. The accounting policies adopted are consistent with those of the previous financial year. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. d) New accounting standards not yet issued Certain new and amended accounting standards and interpretations have been issued that are not mandatory for 31 December 2024 reporting period. These standards and interpretations have not been early adopted. The Company is currently assessing their impact. While no material impact on financial balances or transactions is anticipated, changes to AASB18 Presentation and Disclosure in Financial Statements may affect disclosures in future financial statements. The final impact will be determined as the assessment concludes. AASB 2014-10 Amendments to AASs – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. Effective for annual reporting periods beginning on or after 1 January 2028 The amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves a business as defined in AASB 3 Business Combinations. Any gain or loss resulting from the sale or contribution of assets that does not constitute a business, however, is recognised only to the extent of unrelated investors’ interests in the associate or joint venture. These amendments are applied prospectively. Earlier application is permitted. 25 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 1. Corporate Information and Summary of Accounting Policies (continued) d) New accounting standards not yet issued (continued) AASB 2024-3 Amendments to AASs – Annual Improvements Volume II- Amendments to AASB 10 - de facto agents. Effective for annual reporting periods beginning on or after 1 January 2026 This amendment clarifies that the relationship described in AASB 10. B74 is just one example of a de facto agent relationship that might exist between the investor and other parties. The intention of this amendment is to remove an inconsistency with the requirement in AASB 10. B73, which requires an entity to use judgement to determine whether other parties are acting as de facto agents. Earlier application is permitted. AASB 2024-2 Amendments to AASs – Classification and Measurement of Financial Instruments. Effective for annual reporting periods beginning on or after 1 January 2026 These amendments to AASB 7 and AASB 9 Financial Instruments: Clarify that a financial liability is derecognised on the ‘settlement date’, i.e., when the related obligation is discharged, cancelled, expires or the liability otherwise qualifies for derecognition. Introduce an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before the settlement date if certain conditions are met. For the purpose of classifying a financial asset, clarify how to assess contractual cash flow characteristics that include environmental, social and governance (ESG)-linked features and other similar contingent features. Clarify how non-recourse features and contractually linked instruments are assessed for the purpose of applying the SPPI test when determining the measurement basis of financial assets. Require additional disclosures in AASB 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income. The new requirements will be applied retrospectively with an adjustment to opening retained earnings. Prior periods are not required to be restated and can only be restated without using hindsight. An entity is required to disclose information about financial assets that change their measurement category due to the amendments. AASB 2024-3 Amendments to AASs – Annual Improvements Volume II- Amendments to AASB 7 Effective for annual reporting periods beginning on or after 1 January 2026 The AASB has made the following narrow-scope amendments to AASB 7: Gain or loss on derecognition (B 38) - updated the language on unobservable inputs, adding a cross reference to AASB 13 Fair Value Measurement. Introduction to implementation guidance (IG 1) - clarified that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of AASB 7, nor does it create additional requirements. Disclosure of deferred difference between fair value and transaction price (IG 14) – amended mainly to make the wording consistent with requirements in AASB 7 and with the terminology used in AASB 9 and ASB 13. Credit risk disclosures (IG 20B) - amended to simplify the explanation of which aspects of the AASs are not illustrated in the example. Earlier application is permitted. 26 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 1. Corporate Information and Summary of Accounting Policies (continued) d) New accounting standards not yet issued (continued) AASB 2024-3 Amendments to AASs – Annual Improvements Volume II- Amendments to AASB 9 Effective for annual reporting periods beginning on or after 1 January 2026 The AASB has made the following narrow-scope amendments to AASB 9: Derecognition of lease liabilities - clarified that, when a lessee has determined that a lease liability has been extinguished in accordance with AASB 9, the lessee is required to apply AASB 9.3.3.3 and recognise any resulting gain or loss in profit or loss. However, the amendment does not address how a lessee distinguishes between a lease modification as defined in AASB 16 and an extinguishment of a lease liability in accordance with AASB 9. Transaction price – to avoid confusion, replaced the reference to ‘transaction price as defined by AASB 15 Revenue from Contracts with Customers’ with ‘the amount determined by applying AASB 15’. Earlier application is permitted. AASB 18 Presentation and Disclosure in Financial Statements Effective for annual reporting periods beginning on or after 1 January 2027 AASB 18 has been issued to improve how entities communicate in their financial statements, with a particular focus on information about financial performance in the statement of profit or loss. The key presentation and disclosure requirements established by AASB 18 are: The presentation of newly defined subtotals in the statement of profit or loss The disclosure of management-defined performance measures (MPM) Enhanced requirements for grouping information (i.e., aggregation and disaggregation) AASB 18 is accompanied with limited consequential amendments to the requirements in other accounting standards, including AASB 107. AASB 18 introduces three new categories for classification of all income and expenses in the statement of profit or loss: operating, investing and financing. Additionally, entities will be required to present subtotals for ‘operating profit or loss’, ‘profit or loss before financing and income taxes’ and ‘profit or loss’. For the purposes of classifying income and expenses into one of the three new categories, entities will need to assess their main business activity, which will require judgement. There may be more than one main business activity. AASB 18 also requires several disclosures in relation to MPMs, such as how the measure is calculated, how it provides useful information and a reconciliation to the most comparable subtotal specified by AASB 18 or another standard. AASB 18 will replace AASB 101 Presentation of Financial Statements. AASB 2023-5 Amendments to AASs – Lack of Exchangeability Effective for annual reporting periods beginning on or after 1 January 2025 The AASB amends AASB 121 The Effects of Changes in Foreign Exchange Rates and AASB 1 First-time Adoption of Australian Accounting Standards, requiring entities to apply a consistent approach to determining: Whether a currency is exchangeable into another currency The spot exchange rate to use when it is not exchangeable The amendments create a new definition of exchangeable, which explains that a currency is exchangeable into another currency when: An entity can obtain the other currency within a time frame that allows for a normal administrative delay, and A market or exchange mechanism creates enforceable rights and obligations over an exchange transaction 27 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 1. Corporate Information and Summary of Accounting Policies (continued) d) New accounting standards not yet issued (continued) The amendments also clarify that a currency is not exchangeable into another currency: If an entity can only obtain an insignificant amount of the other currency At the measurement date for the specified purpose. When a currency is not exchangeable: An entity shall estimate the spot exchange rate The estimate would reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions The entity must also disclose information on how the lack of exchangeability affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. AASB 2024-3 Amendments to AASs – Annual Improvements Volume II- Amendments to AASB 107 Effective for annual reporting periods beginning on or after 1 January 2026 Paragraph 37 of AASB 107 has been amended to replace the term ‘cost method’ with the phrase ‘at cost’, following deletion of the definition of ‘cost method’. Earlier application is permitted. e) Basis of consolidation The consolidated financial statements comprise the financial statements of the Group as at 31 December 2024. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and can affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: the contractual arrangement with the other vote holders of the investee; rights arising from other contractual arrangements; and the Group’s voting rights and potential voting rights. The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the Reporting Period are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-Group assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. f) Transactions and balances Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the reporting date. All exchange differences are taken to the consolidated statement of comprehensive income. 28 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 1. Corporate Information and Summary of Accounting Policies (continued) g) Other accounting policies Significant and other accounting policies that summarise the measurement basis used, and are relevant in understanding of the consolidated financial statements, are provided throughout the notes to the consolidated financial statements. h) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset (i.e., an asset that necessarily takes a substantial amount of time to prepare for its intended use or sale) are capitalised as part of the cost of that asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. i) Goods and service taxes (GST) Revenues, expenses, and assets are recognised net of the amount of GST except: when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables, which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position. Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of amounts of GST recoverable from, or payable to, the taxation authority. j) Joint arrangements Joint arrangements are arrangements over which two or more parties have joint control. Joint Control is the contractual agreed sharing of control of the arrangement which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. Joint arrangements are classified as ether a joint operation or a joint venture, based on the rights and obligations arising from the contractual obligations between the parties to the arrangement. To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint arrangement, the arrangement is classified as a joint operation and as such, the Group recognises its: assets, including its share of any assets held jointly; liabilities, including its share of liabilities incurred jointly; revenue from the sale of its share of the output arising from the joint operation; share of revenue from the sale of the output by the joint operation; and expenses, including its share of any expenses incurred jointly. To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the investment is classified as a joint venture and accounted for using the equity method. Under the equity method, the cost of the investment is adjusted by the post-acquisition changes in the Group’s share of the net assets of the joint venture. k) Investment in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries. The Group’s investment in its associate are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately. 29 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 1. Corporate Information and Summary of Accounting Policies (continued) k) Investment in associates (continued) The consolidated statement of comprehensive income reflects the Group’s share of the results of operations of the associate. Any change in other comprehensive income (OCI) of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the consolidated statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the consolidated statement comprehensive income outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate. The financial statements of the associate are prepared for the same Reporting Period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss within “share of loss of an associate” in the consolidated statement of comprehensive income. Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in the consolidated statement of comprehensive income. l) Significant accounting judgements, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and expenses. Management bases its judgements and estimates on historical experience, independent experts, and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Management has identified the following critical accounting policies for which significant judgements have been made as well as the following key estimates and assumptions that have the most significant impact on the consolidated financial statements. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. Note Key estimate or judgement Revenue – note 3 Identification of performance obligations for arrangements subject to CIF Incoterms. Property, plant and equipment and depreciation – note 13 Life of mine method of depreciation provided incorporating residual values and useful lives. Mine property and development and amortisation – note 14 Determination of mineral resources and ore reserves. Life of mine method of amortisation based on units of production (UOP) resulting in an amortisation charge proportional to the depletion of the economically recoverable mineral reserves. Assessing indicators of impairment. Estimate of future capital development expenditure. Provisions – note 18 Future cash flows (amounts and timing) required to rehabilitate. Discount rate. Convertible notes receivable derivative financial instruments – notes 2(g) and 12. Share price volatility. Market interest rate. Investment in an associate – note 11 Determination on whether the Group has significant influence in the policy making process of the investee. Deferred tax asset – note 6 Determination of future taxable income and the timeframe for the recognition of a deferred tax asset for fractional tax losses. 30 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies The Group’s principal financial instruments comprise receivables, payables, lease liabilities, cash and short-term deposits, derivative financial instruments, convertible notes, and equity investments. Risk exposures and responses The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial targets while protecting future financial security. The Group may enter derivative transactions, principally forward commodity swaps, from time to time, to manage the commodity price risks arising from the Group’s operations. The Group did not have any derivative transactions of these types as at 31 December 2024 (31 December 2023: nil). Historically, these derivatives provide economic hedges, but do not qualify for hedge accounting and are based on limits set by the Board. The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, commodity risk, credit risk, equity price risk and liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate, foreign exchange risk and assessments of market forecasts for interest rate, foreign exchange, and commodity prices. Ageing analysis and monitoring of receivables are undertaken to manage credit risk, liquidity risk is monitored through the development of future rolling cash flow forecasts. Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and agrees policies for managing each of the identified risks, including for interest rate risk, credit allowances and cash flow forecast projections. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in the notes to the consolidated financial statements. The accounting classification of each category of financial instruments, as defined in the notes to the consolidated financial statements, and their carrying amounts, are set out below: a) Interest rate risk The Group’s exposure to risks of changes in market interest rates relate primarily to the Group’s cash balances. The Group regularly reviews its interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions, alternative financing positions and the mix of fixed and variable interest rates. The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date. The sensitivity analysis is for variable rate cash balances. At 31 December 2024, if interest rates had moved by a reasonably possible 1.50% (31 December 2023: 1.50%) as illustrated in the table below, with all other variables held constant, post-tax profits and equity would have been affected as follows: Post tax profit higher/(lower) Judgement of reasonably possible movements: 31 Dec 2024 $’000 + 1.50% (150 basis points) 1,946 - 1.50% (150 basis points) (1,946) Judgement of reasonably possible movements: 31 Dec 2023 $’000 + 1.50% (150 basis points) 1,426 - 1.50% (150 basis points) (1,426) A sensitivity of +1.50% or -1.50% has been selected as this is considered reasonable given the current level of short- term and long-term interest rates. The movements in profit are due to possible higher or lower interest payable or receivable from variable rate interest bearing loans and cash balances. 31 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) At balance date, the Group’s exposure to interest rate risk for classes of financial assets and financial liabilities is set out below. 31 December 2024 Floating interest ($’000) Fixed Interest ($’000) Non-interest bearing ($’000) Total carrying amount ($’000) Financial assets Cash and cash equivalents 220,644 - - 220,644 Trade receivables at fair value through the profit and loss - - 5,499 5,499 Convertible notes receivable - 37,402 - 37,402 Financial assets at fair value through profit or loss - - 406 406 Other receivables 3,457 747 - 4,204 Total financial assets 224,101 38,149 5,905 268,155 Financial liabilities Trade and other payables - - (20,972) (20,972) Contract liability - - (11,931) (11,931) Interest bearing liabilities - (6,153) - (6,153) Total financial liabilities - (6,153) (32,903) (39,056) Net financial assets/(liabilities) 224,101 31,996 (26,998) 229,099 31 December 2023 ($’000) Floating interest ($’000) Fixed Interest ($’000) Non-interest bearing ($’000) Total carrying amount ($’000) Financial assets Cash and cash equivalents 143,042 - - 143,042 Trade receivables at fair value through the profit and loss - - 12,368 12,368 Convertible notes receivable - 14,003 - 14,003 Financial assets at fair value through profit or loss - - 3,625 3,625 Other receivables 3,457 - - 3,457 Total financial assets 146,499 14,003 15,993 176,495 Financial liabilities Trade and other payables - - (16,400) (16,400) Interest bearing liabilities - (8,357) - (8,357) Total financial liabilities - (8,357) (16,400) (24,757) Net financial assets/(liabilities) 146,499 5,646 (407) 151,738 32 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) b) Credit risk Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The Group’s maximum exposures to credit risk at reporting date in relation to each class of financial asset is the carrying amount of those assets as indicated in the consolidated statement of financial position. Credit risk is managed on a Group basis. Credit risk predominantly arises from cash, cash equivalents, derivative financial instruments, deposits with banks and financial institutions, trade receivables and convertible note receivables. The Group has in place policies that aim to ensure that derivative counterparties and cash transactions are limited to high credit quality financial institutions and that the amount of credit exposure to any one financial institution is limited as far as is considered commercially appropriate. The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates: Cash and cash equivalents and other financial assets are held with Australian Banks with an AA- credit rating (Standard & Poor’s). Significant concentrations of credit risk are in relation to cash and cash equivalents with Australian banks. Receivable balances are monitored on an ongoing basis with the result that the Group does not have a significant exposure to bad debts. The Group does not hold any credit derivatives to offset its credit exposure. The Group trades only with recognised, creditworthy third parties and as such collateral, letters of credit or other forms of credit insurance is not requested nor is it the Group’s policy to securitise its trade and other loans and receivables. The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are in several jurisdictions and operate in largely independent markets. At 31 December 2024, the Group had two customers (31 December 2023: two customers) that each owed the Group $2.73 million and $2.77 respectively (31 December 2023: $8.45 million and $3.92 million respectively) and accounted for approximately 100% (31 December 2023: 100%) of all trade receivables owing. At 31 December 2024, there are no trade receivables at amortised cost that are past due (31 December 2023: nil). At 31 December 2024, The Company continues to hold $36.00 million in aggregate in convertible notes issued by Cyprium with an annual coupon rate of 6%. The convertible notes are valued at fair value through profit or loss. The convertible notes were fair valued at $37.40 million (31 December 2023: $14.00 million) resulting in a fair value adjustment of $23.40 million. Refer to notes 2 and 12 for further details on the convertible note valuation. c) Equity security price risk The Group’s income may be exposed to equity security price fluctuations arising from investments in equity securities and the options available to the Group. At the balance date the group had the following exposure to equity price risk: 31 Dec 2024 $’000 31 Dec 2023 $’000 Cyprium convertible notes 37,402 14,003 NICO options - 3,625 Cyprium options 406 - 37,808 17,628 At 31 December 2024, if the underlying equity price in Cyprium had moved by a reasonably possible 10%, as illustrated in the table below, with all other variables held constant, post-tax profits and equity would have been affected as follows: Post-tax profit higher/(lower) Judgement of reasonably possible movements: 31 Dec 2024 $’000 31 Dec 2023 $’000 Equity price +10% 1,528 707 Equity price -10% (1,199) (674) 33 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) d) Foreign currency risk As a result of tin concentrate sales receipts being denominated in US dollars, the Group’s cash flows can be affected by movements in the US dollar/Australian dollar exchange rate. At balance date, the Group had the following exposure to US dollar foreign currency: 31 Dec 2024 $’000 31 Dec 2023 $’000 Trade and other receivables 5,499 12,368 At 31 December 2024, if foreign currency rates had moved by a reasonably possible 10%, as illustrated in the table below, with all other variables held constant, post-tax profits and equity would have been affected as follows: Post tax profit higher/(lower) Other comprehensive income higher/(lower) Judgement of reasonably possible movements: 31 Dec 2024 $’000 31 Dec 2023 $’000 31 Dec 2024 $’000 31 Dec 2023 $’000 A$/US$ Rate +10% 385 866 - - A$/US$ Rate -10% (385) (866) - - A sensitivity of +10% or -10% has been selected as this is considered reasonable given recent fluctuations in foreign currency rates and management’s expectations of future movements. e) Commodity price risk The Group is exposed to movements in the tin price. As part of the risk management policy of the Group, a variety of financial instruments (such as forward commodity swaps) may be used from time to time to reduce exposure to unpredictable fluctuations in the project life revenue streams. At 31 December 2024, the Group did not hold any commodity derivatives (31 December 2023: nil). At balance date, the Group had the following exposure to commodity price risk: At 31 Dec 2024 $’000 At 31 Dec 2023 $’000 Open invoices subject to quotational pricing - 3,919 At 31 December 2024, if commodity price had moved by a reasonably possible 10%, as illustrated in the table below, with all other variables held constant, post-tax profits and equity would have been affected as follows: Post tax profit higher/(lower) Other comprehensive income higher/(lower) Judgement of reasonably possible movements: 31 Dec 2024 $’000 31 Dec 2023 $’000 31 Dec 2024 $’000 31 Dec 2023 $’000 Tin Price +10% - 416 - - Tin Price -10% - (416) - - f) Liquidity risk Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. The Group’s objective is to maintain a balance between continuity of funding and flexibility using finance and hire purchase leases. The tables below reflect all contractually fixed payables for settlement repayment resulting from recognised financial liabilities as of 31 December 2024. Cash flows for financial liabilities without fixed amount or timing are based on the conditions existing as 31 December 2024. 34 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) The remaining contractual maturities of the Group’s financial liabilities are: 31 December 2024 <6 months 6-12 months 1-5 years >5 years Total Financial liabilities Trade and other payables (20,972) - - - (20,972) Lease liabilities (1,823) (1,823) (2,696) - (6,342) Total outflow ($’000) (22,795) (1,823) (2,696) - (27,314) 31 December 2023 <6 months 6-12 months 1-5 years >5 years Total Financial liabilities Trade and other payables (16,400) - - - (16,400) Lease liabilities (2,015) (2,015) (4,652) - (8,682) Total outflow ($’000) (18,415) (2,015) (4,652) - (25,082) g) Fair values For all financial assets and liabilities recognised in the consolidated statement of financial position, carrying amount approximates fair value unless otherwise stated in the applicable notes. The methods for estimating fair value are outlined in the relevant notes to the consolidated financial statements. The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise: Level 1 - the fair value is calculated using quoted prices in active markets. Level 2 - the fair value is estimated using inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from price). Level 3 - the fair value is estimated using inputs for the asset or liability that are not based on observable market data. 31 December 2024 Quoted market price (Level 1) $'000 Valuation technique market observable inputs (Level 2) $'000 Valuation technique non-market observable inputs (Level 3) $'000 Total $'000 Convertible note receivables1 - - 37,402 37,402 Derivative financial instruments Cyprium options2 - - 406 406 Derivative financial instruments NICO options - - - - - - 37,808 37,808 31 December 2023 Quoted market price (Level 1) $'000 Valuation technique market observable inputs (Level 2) $'000 Valuation technique non-market observable inputs (Level 3) $'000 Total $'000 Convertible note receivables1 - - 14,003 14,003 Derivative financial instruments Cyprium options2 - - - - Derivative financial instruments NICO options2 - - 3,625 3,625 - - 17,628 17,628 1At 31 December 2024, the fair value of the convertible note receivables was $37.40 million (31 December 2023: $14.00 million). The fair value increased by $23.40 million due to remeasurement. 35 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) g) Fair values (continued) At 31 December 2024, a valuation of the convertible notes has been determined by an external expert as follows: As the convertible notes are not traded in an active market, their fair value is estimated by discounting the stream of future interest and principal payments at the rate of interest prevailing at the reporting date for instruments of similar term and risk (the market rate of debt which takes into consideration Cypriums ASX announcements, where applicable, for the year), and adding this value to the value of the Embedded Derivative Component which is valued using a Black-Scholes model (B&S Model). The B&S model is based on assumptions and inputs including expected volatility, risk-free interest rate, expected life of the options, conversion price, share price at balance date, and expected remaining life of the convertible notes. Exercising the conversion option would result in the Company receiving approximately 1.029 billion Cyprium shares. The inputs used to value the convertible notes at 31 December 2024 are as follows: B&S Model DCF Total Fair Value at 31 Dec 2024 $’000 Expected volatility 100% - Risk-free interest rate 3.824% - Expected life 3.25 years 3.25 years Options exercise price $0.035 - Share price at valuation date $0.023 - Expiry date/maturity date 30 March 2028 30 Mar 2028 Face value of convertible notes - $36.000 million Market rate of debt - 22.50% Semi-annual coupon rate - 6% Fair value per instrument $0.013 - Number of instruments 1,028,571,429 - Total fair value at 31 Dec 2024 ($’000) $13,371 $24,030 $37,401 The inputs used to value the convertible notes at 31 December 2023 are as follows: B&S Model DCF Total Fair Value at 31 Dec 2023 $’000 Expected volatility 90% - Risk-free interest rate 3.691% - Expected life 1.25 years 1.25 years Options exercise price $0.3551 - Share price at valuation date $0.03 - Expiry date/maturity date 30 Mar 2025 30 Mar 2025 Face value of convertible notes - $36.000 million Risk-free rate of debt 3.691% Annual coupon rate - 4% Probability of loss - 62.5% Fair value per instrument $0.0002 - Number of instruments 101,379,893 - Total fair value at 31 Dec 2023 ($’000) $24 $13,979 $14,003 36 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 Dec 2024 2. Financial Risk Management Objectives and Policies (continued) Cyprium options 2 The derivative financial assets represent 40.60 million Cyprium options to acquire shares in Cyprium. The fair value of the 40.6 million Cyprium options at 31 December 2024 is $0.40 million (31 December 2023: nil). The inputs used to value the Cyprium options at 31 December 2024 are as follows: Cyprium options Expected volatility 100% Risk-free interest rate 3.838% Expected life of options 1.91 years Options exercise price $0.035 Share price at measurement date $0.023 Expiry date/maturity date 28 Nov 2026 Fair value as at 31 December 2024 ($’000) 406 NICO options The fair value of the 25.0 million NICO options at 31 December 2024 is nil (31 December 2023: $3.63 million). The NICO options expired out of the money on 3 November 2024. The inputs used to value the Options at 31 December 2023 are as follows: NICO options Expected volatility 80% Risk-free interest rate 3.691% Expected life of options 0.84 years Options exercise price $0.25 Share price at measurement date $0.345 Expiry date/maturity date 3 Nov 2024 Fair value as at 31 December 2023 ($’000) 3,625 The effects of fair value changes are reflected in the consolidated statement of comprehensive income. Significant estimates and judgments – level 3 inputs The following significant estimates and judgments were made for inputs used in determining the fair value of financial instruments categorised as level 3: (i) Share price volatility Management used an external expert to assist with the estimate of share price volatility for the purposes of its Black Scholes valuation technique. The recent volatility of the share price of Cyprium was calculated for one, two, and three-year periods, using historical data extracted from Bloomberg. For the purpose of the valuation, a future estimated volatility level of 100% for Cyprium was used in the option pricing models. 37 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) (ii) Risk-free interest rates The Australian Government bond rate at the Valuation Date was use as a proxy for the risk-free rate over the life of the Convertible Notes and the Cyprium options. The 3-year Australian Government bond rate as at 31 December 2024 was 3.824%, which was used as an input in the option pricing model in valuing the convertible notes. The 2- year Australian Government bond rate as at 31 December 2024 was 3.838%, which was used as an input in the option pricing model in valuing the Cyprium options. (iii) Market rate of debt An independent expert assessed Cyprium's market rate of debt at 22.50%. This rate was applied to discount future coupon and principal cash inflows of the loan receivable component to present value, reflecting the company's estimated borrowing cost in the market. A quantitative sensitivity analysis as at 31 December 2024 is shown below: Instrument Valuation technique Significant unobservable inputs Value Sensitivity of the input to fair value Convertible notes DCF Black Scholes Market rate of debt Volatility 22.50% 100% A +/(-) 2.5% change in the market rate of debt would result in a change in fair value by ($1.35) million and $1.47 million respectively. +/(-)10% change in volatility would result in a change in fair value of approximately $1.52 million and approximately ($1.07) million. Derivative financial instruments – Cyprium options Black Scholes Volatility 100% +/(-)10% change in volatility would result in a change in fair value of $0.05 million and ($0.05) million. 38 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 2. Financial Risk Management Objectives and Policies (continued) h) Changes in liabilities arising from financing activities The Group classifies interest paid as cash flows from operating activities. 1 Jan 2024 $’000 Payments Net Transfers & New Leases 31 Dec 2024 $’000 Current interest-bearing loans and borrowings 4,030 (2,204) 1,819 3,645 Non-current interest bearing loans and borrowings 4,327 - (1,819) 2,508 Total liabilities from financing activities 8,357 (2,204) - 6,153 1 Jan 2023 $’000 Payments Net Transfers & New Leases 31 Dec 2023 $’000 Current interest-bearing loans and borrowings 1,930 (3,097) 5,197 4,030 Non-current interest bearing loans and borrowings 1,409 - 2,918 4,327 Total liabilities from financing activities 3,339 (3,097) 8,115 8,357 3. Revenue 31 Dec 2024 $’000 31 Dec 2023 $’000 Revenue from contracts with customers – tin-in-concentrate 218,820 153,781 Recognition and measurement Metals X owns a 50% equity interest in the Renison Tin Operation (Renison) through its 50% stake in the Bluestone Mines Tasmania Joint Venture (BMTJV). The Group is principally engaged in the business of producing tin-in- concentrate. Revenue from contracts with customers is recognised when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has concluded that it is the principal in its revenue contracts because it typically controls the goods or services before transferring them to the customer. Based on the current contractual terms, revenue is recognised when control passes to the customer, which occurs at a point in time when the tin-in-concentrate physically arrives at the customer’s works or the customers destination port. Revenue is measured as the amount to which the Group expects to be entitled, being the estimate of the price expected to be received at the end of the Quotational Period (QP), and a corresponding trade receivable is recognised. The Group’s sales of tin-in-concentrate allow for price adjustments based on the market price at the end of the relevant QP stipulated in the contract. These are referred to as provisional pricing arrangements and are such that the selling price for tin-in-concentrate is based on prevailing spot prices on a specified future date after shipment to the customer. Adjustments to the sales price occur based on movements in quoted market prices up to the end of the QP. The QP for tin-in-concentrate is not expected to result in a material adjustment due to the short period between the point control of the concentrate passing to the customer and the end of the QP. For the provisional pricing arrangements, any future changes that occur over the QP are embedded within the provisionally priced trade receivables and are, therefore, within the scope of AASB 9 Financial Instruments (AASB 9) and not within the scope of AASB 15 Revenue from Contracts with Customers (AASB 15). 39 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 3. Revenue (continued) Revenue is initially recognised based on the most recently determined estimate of tin-in-concentrate using the expected value approach based on initial internal assay and weight results. The Group has determined that it is highly unlikely that a significant reversal of the amount of revenue recognised will occur due to variations in assay and weight results. Subsequent changes in the fair value based on the customer’s final assay and weight results are recognised in revenue at the end of the QP. Key estimates and judgements Revenue from contracts with customers Identification of the enforceable contract For tin-in-concentrate (metal in concentrate) sales, there are master services agreements with key customers that set out the general terms and conditions governing any sales that occur. The customer is only obliged to purchase tin-in-concentrate when it places an order for each shipment. Therefore, the enforceable contract has been determined to be each purchase order. 4. Other Income 31 Dec 2024 $’000 31 Dec 2023 $’000 Interest income (i)(ii) 9,837 7,089 Other income 95 108 Gain on sale of investment in associate - 2,400 Convertible notes extension fee (iii) 5,000 - Total other income 14,932 9,597 (i) Interest income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. (ii) On 30 March 2024, the Company received the third annual payment of $1.44 million as settlement of the 4% coupon payable under the terms of the convertible notes issued by Cyprium. (iii) Metals X and Cyprium Metals reached an agreement to amend the terms of the convertible notes. As part of this arrangement, Metals X secured a $5.00 million amendment fee payable in two instalments which were received during the Reporting Period. 40 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 5. Expenses a) Cost of sales 31 Dec 2024 $’000 31 Dec 2023 $’000 Salaries, wages expense and other employee benefits 22,545 19,458 Superannuation expense 2,490 2,096 Mining costs 40,762 35,447 Processing costs 20,166 19,802 Other production costs 11,582 9,606 Changes in inventories (8,446) (3,593) (Reversal)/provision for obsolete and impairment stores and spares (119) 327 Royalty expense 11,772 8,163 Depreciation - property, plant, and equipment 6,865 4,483 Depreciation - buildings 2,134 1,277 Mine properties and development - amortisation 13,807 8,089 Total cost of sales 123,558 105,155 b) General and administration expenses Directors' fees, and other benefits 1,130 1,014 Superannuation expense 122 110 Other employee benefits 29 32 Consulting expenses 1,070 1,228 Travel and accommodation expenses 405 234 Administration costs 574 592 (Reversal)/accrued other employee related provisions (586) 586 Depreciation – other assets - 8 Total general and administration expense 2,744 3,804 c) Finance costs Interest expense 314 743 Unwinding of rehabilitation provision discount 252 134 Total finance costs 566 877 d) Fair value change in financial assets Fair value gain/(loss) in financial assets through profit or loss 20,179 (23,637) Recognition and measurement Salaries, wages, and other employee benefits are recognised as and when employees render their services. Expenses for non-accumulating personal leave are recognised when the leave is taken and measured at the rates paid or payable. Refer to note 18 for the accounting policy relating to short-term and long-term employee benefits. Provisions and other payables are discounted to their present value when the effect of time value of money is significant. The impact of the unwinding of these discounts is reported in finance costs. 41 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 6. Income Tax At 31 Dec 2024 At 31 Dec 2023 $'000 $'000 (a) Major components of income tax (benefit)/expense: Income statement Current income tax expense Current income tax expense 31,659 16,367 Deferred income tax Relating to origination and reversal of temporary differences in current year 4,120 (8,059) (Non-assessable)/deductible unrealised fair value (gain)/loss (6,042) 3,926 Recognition of deferred tax asset relating to fractional tax losses (11,859) - Income tax expense reported in the consolidated statement of comprehensive income 17,878 12,234 (b) A reconciliation of income tax expense and the product of accounting profit before income tax multiplied by the Group's applicable income tax rate is as follows: 31 Dec 2024 31 Dec 2023 $'000 $'000 Total accounting profit before income tax from operations 120,227 26,819 At statutory income tax rate of 30% (31 December 2023: 30%) 36,068 8,046 Non-deductible items Non-deductible penalties - 494 Sundry items 7 7 Other (150) - Deductible items (146) (239) (Non-assessable)/deductible unrealised fair value (gain)/loss (6,042) 3,926 Recognition of deferred tax asset relating to fractional tax losses (11,859) - Income tax expense reported in the statement of comprehensive income 17,878 12,234 42 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 6. Income Tax (continued) Deferred income tax at 31 December 2024 relates to the following: Statement of Financial Position Statement of Other Comprehensive Income 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 $'000 $'000 $'000 $'000 Deferred tax liabilities Exploration (1,018) 43 1,061 - Derivative financial instruments - - - (1,876) Deferred mining (13,652) (13,511) 141 2,041 Mine site establishment and refurbishment (4,230) (4,312) (82) 3,180 Interest income (340) (258) 82 72 Diesel rebate (28) (22) 6 4 Convertible notes (699) - 699 - Property Plant and Equipment (3,370) (2,867) 503 981 Gross deferred tax liabilities (23,337) (20,927) Deferred tax assets Inventories 433 469 36 (98) Legal costs 54 115 61 91 Accrued expenses 109 123 14 (39) Provision for employee entitlements 2,027 2,202 175 (602) Provision for fringe benefits tax 2 2 - (1) Provision for rehabilitation 9,540 8,043 (1,497) (3,848) Recognised capital tax losses to offset the convertible note 699 - (699) - Recognised tax losses 7,043 36,280 29,237 12,329 Recognised tax losses relating to fractional losses 11,859 - (11,859) - Gross deferred tax assets 31,766 47,234 Net deferred tax assets 8,429 26,307 Income tax expense reported in the consolidated statement of comprehensive income 17,878 12,234 At 31 December 2024, there are unrecognised transferred revenue tax losses of $482,067,369 (31 December 2023: $521,597,126) for the Group subject to a restricted rate of utilisation and no expiry date. During the Reporting Period the Company recognised an $11.86 million deferred tax asset relating to transferred revenue tax losses not previously recognised (31 December 2023: nil).The Company has recognised these deferred tax assets to the extent that it is probable that estimated future taxable profits will be available against which these losses can be utilised at their available fraction. The estimated future taxable profits are based on a series of judgments. The Company has assessed five years to be a reasonable time period to utilise in estimating the amount of fractional tax losses to be recognised as at 31 December 2024. At 31 December 2024, there are unrecognised capital losses of $19,621,080 (31 December 2023: $21,952,797) for the Group with no expiry date. 43 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 6. Income Tax (continued) Recognition and measurement Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognised directly in equity is recognised in equity and not in the consolidated statement of comprehensive income. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax Deferred tax is provided for using the balance sheet full liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred income tax liabilities are recognised for all taxable temporary differences except: when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss except for transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences such as recognition of a right-of-use (ROU) asset and lease liability; and in respect of taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available, against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised except: when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and in respect of the deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available, against which the temporary differences can be utilised. 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 income taxes 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. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Income taxes relating to items recognised directly in equity are recognised in equity and not in the profit and loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. Tax consolidation legislation Metals X and its wholly owned Australian controlled entities have implemented the tax consolidation legislation as of 1 July 2004. The head entity, Metals X and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The Group has applied the group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. Members of the Group have entered into a tax sharing agreement (TSA) that provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payments obligations. No amounts have been recognised in the consolidated financial statements in respect of the TSA on the basis that the possibility of default is remote. 44 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 6. Income Tax (continued) Tax consolidation legislation (continued) Members of the Group have also entered into tax funding agreements (TFA). The TFA provides for the allocation of current taxes to members of the tax consolidated group. The allocation of taxes under the TFA is recognised as an increase/(decrease) in the controlled entities intercompany accounts with the tax consolidated group head company, Metals X. The nature of the TFA is such that no tax consolidation contributions by or distributions to equity participants are required. 7. Earnings Per Share The following reflects the data used in the basic and diluted earnings per share computations for the year ended 31 December 2024. 31 Dec 2024 31 Dec 2023 For basic and diluted earnings per share: Profit attributable to operations ($’000) 102,349 14,585 Weighted average number of ordinary shares outstanding during the Reporting Period used in the calculation of basic and diluted earnings per share 902,735,976 907,266,067 Basic and diluted earnings per share (cents) From operations 11.34 1.61 Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit attributable to members of the parent adjusted for: cost of servicing equity (other than dividends) and preference share dividends; the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised; and other non-discriminatory changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares. The result is divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element. The Company has no share options on issue which are anti-dilutive and are therefore not required to be included in the calculation of diluted earnings per share (31 December 2023: nil). There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and before the completion of these consolidated financial statements. 45 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 8. Cash and Cash Equivalents 31 Dec 2024 $'000 31 Dec 2023 $'000 Cash at bank and in hand - denominated in AUD 75,594 43,042 Short-term deposits (i) 145,050 100,000 Total 220,644 143,042 (i) Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. Refer to note 2(b) for more details on the Group’s credit risk management practices. As all deposits are on demand or have maturity dates of less than twelve months, the Group has assessed the credit risk on these financial assets using lifetime expected credit losses. In this regard, the Group has concluded that the probability of default is insignificant. Recognition and measurement Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Reconciliation of profit before tax to net cash flows from operating activities: 31 Dec 2024 $'000 31 Dec 2023 $'000 Profit before tax 120,227 26,819 Amortisation and depreciation 22,806 13,857 Fair value (gain)/loss in financial assets (20,179) 23,637 Gain on sale of investment in associate - (2,400) Rehabilitation expense 5,958 2,126 Unwinding of rehabilitation provision discount 251 134 Provision for stock write down (119) 327 Share of loss of associates 878 960 Gain on disposal of property plant and equipment (19) (70) 129,803 65,390 Changes in assets and liabilities (Increase)/decrease in inventories (8,865) (5,970) Decrease in trade and other receivables and prepayments 6,734 204 Increase in trade and other creditors 5,318 3,292 Increase in contract liability 11,931 - (Decrease)/increase in provisions (1,354) 1,944 Net cash flows from operating activities 143,567 64,860 46 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 9. Trade and Other Receivables Current 31 Dec 2024 31 Dec 2023 Trade receivables at fair value through profit or loss (i) 5,499 12,368 Other receivables at amortised cost (ii) 2,851 3,318 Other receivables – loan provided to BMTJV (iii) 316 - 8,666 15,686 Non-current Other receivables – loan provided to BMTJV (iii) 431 - Other receivables – performance bond facility (iv) 3,457 3,457 3,888 3,457 (i) On 31 December 2024, no tonnes of tin-in-concentrate revenue remained open to tin price adjustment (31 December 2023: 121 tonnes). Trade receivables (subject to provisional pricing) are non-interest bearing but are exposed to future commodity price movements over the quotational period (QP) and are measured at fair value through profit or loss up until the date of settlement. These trade receivables are initially measured at the amount which the Group expects to be entitled, being the estimate of the price expected to be received at the end of the QP. For tin concentrate 80% - 85% of the provisional invoice (based on the provisional price) is received in cash either within two weeks of sailing, or within four weeks of the shipment’s arrival at the customers smelter, depending on customer. The QP for tin-in-concentrate is not expected to result in a material adjustment due to the short period between the point control of the concentrate passes to the customer and the end of the QP. (ii) Balance includes cash calls advanced to the BMTJV of $0.25 million (31 December 2023: $1.00 million), GST receivable $1.24 million (31 December 2023: $0.81 million), interest receivable of $1.13 million (31 December 2023: 0.86 million) and other debtors of $0.23 million (31 December 2023: $0.57 million). (iii) During the Reporting Period, Metals X provided a mutually beneficial loan of $1.93 million to BMTJV to finance the purchase of a new EPIROC MT65 underground mine truck. The loan is repayable over 36 months at an interest rate of 6.0% per annum. (iv) The performance bond facility is interest bearing and is used as security for government performance bonds. The fair value approximates cost. Refer to note 2(b) for credit risk assessment. 10. Inventories 31 Dec 2024 31 Dec 2023 $’000 $’000 Ore stocks – at cost 8,058 4,127 Tin in circuit – at cost 134 131 Tin concentrate – at cost 19,402 14,889 Stores and spares – at cost 11,424 11,007 Provision for obsolescence - stores and spares (1,445) (1,563) 37,573 28,591 Recognition and measurement Inventories are valued at the lower of cost and net realisable value. Cost includes expenditure incurred in acquiring and bringing the inventories to their existing condition and location and is determined using the weighted average cost method. 47 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 11. Investment in Associates 31 Dec 2024 31 Dec 2023 Investment in associates $’000 $’000 First Tin 12,128 - NICO Resources 1,006 1,304 Tanami Gold 905 1,070 Total 14,039 2,374 Reconciliations: Reconciliations of the carrying amounts of investment in associates at the beginning and end of the Reporting Period: 31 Dec 2024 31 Dec 2023 First Tin $’000 $’000 Opening Balance 1 January - - First Tin (acquisition) 13,044 - Share of loss in associate (416) - Share of other comprehensive loss of associate (presented in other comprehensive loss) (500) - Investment in associate balance 31 December 12,128 - NICO Opening Balance 1 January 1,303 3,140 Sale of NICO shares (8,000,000 shares) at cost - (1,600) Participation in NICO share issue (1,540,000 shares at 40c each) - 616 Share of loss of associate (297) (852) Investment in associate balance 31 December 1,006 1,304 Tanami Gold Opening Balance 1 January 1,070 - Purchase of Tanami shares (34,340,000 at 0.034c each) - 1,178 Share of loss of associate (165) (108) Investment in associate balance 31 December 905 1,070 The Company’s investment in associates pertain to its shares in First Tin, NICO and Tanami Gold. The investment is initially measured at the cost of the shares. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of gains or losses of the associate following the acquisition date. First Tin investment During the Reporting Period, the Company acquired a total of 135,166,667 shares in First Tin representing 29.91% of First Tin’s issued capital for a cumulative investment of £6.67 million (approximately A$13.04 million). The acquisition provides exposure to First Tin's advanced-permitting, low-risk Australian tin project. As at 31 December 2024, the Company holds 135.17 million First Tin shares (31 December 2023: nil) with an equity accounted value of $12.13 million (31 December 2023: nil). At 31 December 2024, the Company recognised a $0.42 million share of loss on its investment in First Tin (31 December 2023: nil), and a $0.50 million share of other comprehensive loss (31 December 2023: nil). The Company recognises its share of losses incurred by First Tin proportional to its 23.31% weighted average interest held during the period. 48 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 11. Investment in Associates (continued) The following table illustrates the summarised financial information of the Group’s investment in First Tin. These balances have been translated into Australia dollars from Pound Sterling (GBP) at balance date. The share of profit and loss is translated at the average exchange rate during the period the investment is held. 31 Dec 2024 31 Dec 2023 ’000 ’000 Current assets 8,609 4,936 Non-current assets 37,661 35,559 Current liabilities (1,039) (1,528) Non-Current liabilities - - Equity 45,231 38,967 Group’s share in equity 29.91% (2023: 0%) 27,297 - Group’s carrying amount of the investment 12,128 - Group’s share of loss for the period 416 - Group’s share of other comprehensive loss for the period 500 - Total comprehensive loss for the period 916 - NICO Investment As at 31 December 2024, the Company holds 9.24 million NICO shares (31 December 2023: 9.24 million) with an equity accounted value of $1.01 million (31 December 2023: $1.30 million). At 31 December 2024, the Company recognised a $0.30 million loss on its investment in NICO (31 December 2023: loss of $0.85 million). The Company recognises its share of losses incurred by NICO proportional to its 8.44% interest. The Company is entitled to a 1.75% net smelter royalty on all metals produced from both the Wingellina Nickel-Cobalt Project and the Claude Hills Project once in production. Tanami Gold Investment At 31 December 2024, the Company holds 34.43 million shares (31 December 2023: 34.43 million) with an equity accounted value of $0.90 million (31 December 2023: 1.07 million). The Company has recognised a $0.17 million loss in its investment in Tanami Gold. The Company recognises its share of losses incurred by Tanami Gold proportional to its 2.93% interest. 12. Financial Assets at Fair Value Through Profit or Loss Current 31 Dec 2024 $’000 31 Dec 2023 $’000 Convertible notes 2,160 1,080 Derivative financial assets 406 3,625 2,566 4,705 Non-current Convertible notes 35,242 12,923 35,242 12,923 Derivative financial assets and debt instruments Derivative financial assets are financial instruments. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. At 31 December 2024, the Company holds: $36.00 million in aggregate in convertible notes issued by Cyprium with an annual coupon rate of 6%; and 40.6 million options to acquire Cyprium shares exercisable at $0.035 each, expiring 28 November 2026. Initial recognition and measurement The Group initially recognises financial assets in the following measurement categories: those to be measured at fair value through profit or loss (FVTPL); fair value through other comprehensive income (FVTOCI); and financial assets measured at amortised cost (Debt Instruments). The classification of financial assets at initial recognition, depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. 49 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 12. Financial Assets at Fair Value Through Profit or Loss (continued) For financial 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, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at FVTOCI. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed. For a financial asset to be classified and measured at amortised cost or FVTOCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI) on the principal amount outstanding. Financial assets with cash flows that are not SPPI are classified and measured at FVTPL, irrespective of the business model. The Group reclassifies debt investments when and only when its business model for managing those assets changes. Convertible notes are financial assets with embedded derivatives which are considered in their entirety when determining whether their cash flows are SPPI. Subsequent measurement Equity instruments The Group subsequently measures all equity investments at fair value. 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 the consolidated statement of comprehensive income following the derecognition of the investment. Dividends from such investments continue to be recognised in the consolidated statement of comprehensive income as other income when the Group’s right to receive payment is established. Changes in the fair value of financial assets at FVTPL are recognised in other gains/(losses) in the consolidated statement of comprehensive income as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value. Debt instruments The subsequent measurement of Debt Instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories for Debt Instruments: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate (EIR) method. Any gain or loss arising on derecognition is recognised directly in the consolidated statement of comprehensive income and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the consolidated statement of comprehensive income. Financial assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent SPPI, are measured at FVTOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in the consolidated statement of comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the EIR. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as separate line item in the consolidated statement of comprehensive income. Assets that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in the consolidated statement of comprehensive income in the period it arises. Impairment Further disclosures relating to impairment of financial assets are also provided in: disclosures for significant assumptions in note 1(l); financial assets at fair value through profit and loss note 12; and trade and other receivables note 9. The Group recognises an allowance for expected credit losses (ECL’s) for all debt instruments not carried at FVTPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements. 50 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 12. Financial Assets at Fair Value Through Profit or Loss (continued) that are integral to the contractual terms. The Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the consolidated statement of comprehensive income. Financial liabilities designated upon initial recognition at FVTPL are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Group has not designated any financial liabilities at FVTPL. Financial liabilities at amortised cost (loans and borrowings) After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in consolidated statement of comprehensive income when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the consolidated statement of comprehensive income. This category generally applies to interest-bearing loans and borrowings. For more information, refer to note 19. Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification, is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the consolidated statement of comprehensive income. Estimates and judgments Fair value measurement of financial instruments These financial assets cannot be measured based on quoted prices in active markets and are therefore measured using valuation techniques. Refer to Note 2 (g) for more information on the valuation techniques and inputs used to determine the fair value of the convertible notes and derivative financial assets. 51 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 13. Property, Plant, and Equipment 31 Dec 2024 31 Dec 2023 Property, plant, and equipment $'000 $'000 Gross carrying amount - at cost 95,753 75,758 Accumulated depreciation and impairment (50,123) (43,348) Net carrying amount 45,630 32,410 Land and buildings Gross carrying amount - at cost 29,901 28,313 Accumulated depreciation and impairment (7,610) (5,476) Net carrying amount 22,291 22,837 Capital work in progress at cost Gross carrying amount - at cost 14,589 18,837 Net carrying amount 14,589 18,837 Total property, plant, and equipment 82,510 74,084 Reconciliations: Reconciliations of the carrying amounts of property, plant, and equipment at the beginning and end of the Reporting Period: Property, plant, and equipment Opening written down value 32,410 19,613 Transfers from capital in progress 20,086 17,288 Depreciation charge for the period (6,866) (4,491) Carrying amount at the end of the period net of accumulated depreciation 45,630 32,410 Land and buildings Opening written down value 22,837 6,713 Transfers from capital in progress 1,588 17,401 Depreciation charge for the period (2,134) (1,277) Carrying amount at the end of the period net of accumulated depreciation 22,291 22,837 Capital work in progress Opening written down value 18,837 41,745 Additions 23,535 24,111 Transfers to mine properties and development (6,109) (12,330) Transfers to property, plant, and equipment (20,086) (17,288) Transfers to land and buildings (1,588) (17,401) Carrying amount at the end of the period 14,589 18,837 52 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 13. Property, Plant, and Equipment (continued) At the end of each reporting period, the Group is required to review whether there is any indication that an asset may be impaired, in accordance with International Accounting Standards. If any such indication exists, the Group shall estimate each asset or Cash Generating Unit (CGU) recoverable amount. The recoverable amount is determined as the higher of a CGU’s value in use (VIU) and its fair value less costs of disposal (FVLCD). In assessing the CGUs, management of the Company has determined that the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets is BMTJV CGU. The Group has determined that there is no active market for intermediate components. The Company has reviewed the BMTJV CGU for indications of impairment using both external and internal sources of information which included current performance, changes in exchange rates, tin price, and market capitalisation. The Company identified that at balance date the net assets of the group exceeded its market capitalisation resulting in an impairment indicator and impairment testing being performed. BMTJV CGU The BMTJV CGU impairment assessment utilises a life of mine discounted cash flow (DCF) model. The recoverable amount has been determined using the VIU methodology. The key assumptions utilised in the impairment modelling includes a weighted average tin price of US$29,328 per tonne for CY2025-CY2026 (31 December 2023: US$24,000 per tonne) and then US$30,000 per tonne for 2027 onwards (31 December 2023: $24,000), an average USD:AUD exchange rate of $0.67 for CY2025-CY2026 (31 December 2023: $0.73) and then $0.70 for CY2027 onwards (31 December 2023: $0.73), and a real pre-tax discount rate of 16.21% (31 December 2023: 16.63%). No impairment has been recognised for the year ended 31 December 2024 (31 December 2023: nil). Recognition and measurement Property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment in value. Capital work-in-progress is stated at cost and comprises all costs directly attributable to bringing the assets under construction ready to their intended use. Capital work-in-progress is transferred to property, plant and equipment or mine properties and development at cost on completion. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset, or where appropriate, over the estimated life of the mine. Major depreciation periods are: mine specific plant and equipment is depreciated using the shorter of life of mine and useful life. Useful life ranges from 2 to 10 years; buildings – the shorter of life of mine and useful life. Useful life ranges from 5 to 40 years; and office property, plant and equipment is depreciated at 33% per annum for computers and office machines and 20% per annum for other office equipment and furniture. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain/(loss) arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in comprehensive income in the period the item is derecognised. Key estimates and judgements Life of mine method of amortisation and depreciation The Group applies the life of mine method of amortisation and depreciation to its mine specific plant and to mine properties and development based on ore tonnes mined. These calculations require the use of estimates and assumptions. Significant judgement is required in assessing the available reserves and the production capacity of the plants to be depreciated under this method. Factors that are considered in determining reserves and production capacity are the Group’s history of converting resources to reserves and the relevant time frames, the complexity of metallurgy, markets, and future developments. When these factors change or become known in the future, such differences will impact pre-tax profit and carrying values of assets. 53 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 14. Mine Properties and Development Recognition and measurement Expenditure on the acquisition and development of mine properties within an area of interest are carried forward at cost separately for each area of interest. Accumulated expenditure is amortised over the life of the area of interest to which such costs relate on a production output basis. 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. Key estimates and judgements In determining amortisation of its mine capital development, the Group applies the units of production (UOP) method and factors in future development spend required to access the remaining ore reserves. For Mine site establishment, the Group applies the life of mine method of amortisation, which is also based on ore tonnes mined. Determination of mineral resources and ore reserves The determination of reserves impacts the accounting for asset carrying values, depreciation and amortisation rates and provisions for mine rehabilitation. The Group estimates its mineral resource and reserves in accordance with the Australian code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the “JORC code”). The information on mineral resources and ore reserves were prepared by or under the supervision of Competent Persons as defined in the JORC code. The amounts presented are based on the mineral resources and ore reserves determined under the JORC code. There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reserves being restated. Impairment At the end of each reporting period, the Group is required to review whether there is any indication that an asset may be impaired, in accordance with International Accounting Standards. If any such indication exists, the Group shall estimate each asset or CGU recoverable amount. The recoverable amount is determined as the higher of a CGU’s VIU and its FVLCD. In assessing the CGUs, management of the Company has determined that the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets is the BMTJV CGU. The Group has determined that there is no active market for intermediate components. Refer to note 13 for a detailed discussion on impairment. 54 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 14. Mine Properties and Development (continued) Determination of future capital development spend Management estimates its future capital development spend based on historical annual requirements forecasted over the remaining estimated life of mine. 31 Dec 2024 31 Dec 2023 $'000 $'000 Mine site establishment Gross carrying amount - at cost 78,607 70,288 Accumulated depreciation and impairment (40,611) (37,955) Net carrying amount 37,996 32,333 Mine site establishment costs include $8.26 million of capitalised Rentails costs (31 December 2023: $5.46 million). Mine capital development Gross carrying amount - at cost 155,505 144,442 Accumulated depreciation and impairment (108,114) (96,964) Net carrying amount 47,391 47,478 Total mine properties and development 85,387 79,811 Mine site establishment Opening written down value 32,333 7,132 Additions 2,802 2,939 Transfers from capital work in progress 6,109 12,330 (Decrease)/ increase in rehabilitation assets (591) 10,643 Amortisation charge for the period (2,657) (711) Carrying amount net of accumulated amortisation 37,996 32,333 Mine capital development Opening written down value 47,478 38,866 Additions 11,064 15,991 Amortisation charge for the period (11,151) (7,379) Carrying amount net of accumulated amortisation 47,391 47,478 15. Exploration and Evaluation 31 Dec 2024 31 Dec 2023 $'000 $'000 Exploration and evaluation costs are carried forward in respect of mining areas of interest At cost 3,888 352 Net carrying amount 3,888 352 55 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 Exploration and evaluation movement 31 Dec 2024 $’000 31 Dec 2023 $’000 Opening balance 352 352 Additions 3,536 - Balance at 31 December 3,888 352 Recognition and measurement Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward at cost where rights to tenure of the area of interest are current and; it is expected that expenditure will be recouped through successful development and exploitation of the area of interest or alternatively by its sale; and/or exploration and evaluation activities are continuing in an area of interest but at reporting date have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. 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 to comprehensive income or provided against. The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment regularly and if after expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely or that the Group no longer holds tenure, the relevant capitalised amount is written off to profit or loss in the period when the new information becomes available. The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective mining areas. Amortisation of the costs carried forward for the development phase is not recognised pending the commencement of production. 16. Trade and Other Payables 31 Dec 2024 31 Dec 2023 $'000 $'000 Trade and other creditors 10,390 8,889 Sundry creditors and accruals 10,582 7,511 20,972 16,400 Recognition and measurement Trade and other payables are initially recognised, at fair value and subsequently measured at amortised cost using the effective interest rate method. Trade creditors are non-interest bearing and generally on 30-day terms. Sundry creditors and accruals are non- interest bearing and generally on 30-day terms. Due to the short-term nature of these payables, their carrying value approximates their fair value. 17. Contract liability 31 Dec 2024 31 Dec 2023 $'000 $'000 Contract liability 11,931 - 11,931 - Contract liability represents cash received for tin sales, where delivery to the customer's port has not yet occurred, hence the revenue recognition criteria have not been met. As at 31 December 2024, $11.93 million has been recognised as a contract liability (31 December 2023: nil). During the Reporting Period, the Company commenced shipments under a new offtake agreement with Yunnan Tin Group (YTG). 56 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 18. Provisions Current 31 Dec 2024 $’000 31 Dec 2023 $’000 Provision for annual leave 3,808 3,470 Provision for superannuation - 1,648 Provision for long service leave 1,309 1,284 Provision for rehabilitation 2,187 - Other provisions 5 5 7,309 6,407 Non-current Provision for long service leave 1,281 728 Provision for rehabilitation 29,612 26,811 30,893 27,539 Rehabilitation movement 31 Dec 2024 $’000 31 Dec 2023 $’000 Opening balance 26,811 13,982 Change in rehabilitation obligations 5,119 12,695 Rehabilitation borrowing discount unwound 252 134 Rehabilitation expenditure (383) - Balance at 31 December 31,799 26,811 Provision for long service leave The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. Provision for rehabilitation Environmental obligations associated with the retirement or disposal of mining properties and/or of exploration activities are recognised when the disturbance occurs and are based on the extent of the damage incurred. The provision is measured as the present value of the future expenditure. The rehabilitation liability is remeasured at each reporting period in line with the change in the time value of money (recognised as an interest expense in the consolidated statement of comprehensive income and an increase in the provision), and additional disturbances/change in the rehabilitation costs are recognised as additions/changes to the corresponding asset and rehabilitation liability. The provisions for rehabilitation are recorded in relation to the Renison Tin Mine and Mt Bischoff for the rehabilitation of the disturbed mining areas to a state acceptable to Tasmanian EPA. While rehabilitation is performed progressively where possible, final rehabilitation of the disturbed mining area is not expected until the cessation of production. Accordingly, the provisions are expected to be settled primarily at the end of the mine life, although some amounts will be settled during the mine life. During the Reporting Period the BMTJV engaged a third party expert to update the mine closure cost estimate for Mt Bischoff. Given Mt. Bischoff is non-operating, any change recognised in the rehabilitation provision is also recognised directly in the statement of profit and loss. Rehabilitation provisions are estimated based on survey data, external contracted rates, and the timing of the current mining schedule. Provisions are discounted based on rates that reflect current market assessments of the time value of money and the risks specific to that liability. The carrying value of the provision is calculated by applying an inflation factor of 2.30% (31 December 2023: 2.60%) which has been estimated based on the break-even 10-year inflation rate published by the RBA and a weighted average discount rate of 4.31% (31 December 2023: 4.19%), which has been estimated using government bond yields for an equivalent period. Costs are inflated and discounted with reference to the Group’s anticipated timing of payment, which is estimated based on the Group’s life of mine and planned activities. A majority of the payments are anticipated within 10 years (31 December 2023: 12 years). 57 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 19. Interest Bearing Liabilities 31 Dec 2024 31 Dec 2023 Current liabilities $'000 $'000 Hire purchase liabilities 3,016 2,765 Other finance liabilities 629 1,265 3,645 4,030 Non-current liabilities Hire purchase liabilities 2,508 4,327 2,508 4,327 Recognition and measurement The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Group as a lessee The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. i) Right-of-use assets The Group recognises right-of-use assets at the lease commencement date, which is when the assets are available for use. The assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any make-good obligations and initial direct costs incurred. Right-of-use assets are depreciated using the straight-line method over the shorter of their useful life and the lease term. Periodic adjustments are made for any re-measurements of the lease liabilities and for impairment losses, assessed in accordance with the Group’s impairment policies. If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. ii) Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of future minimum lease payments, discounted using the Group’s incremental borrowing rate if the rate implicit in the lease cannot be readily determined, and are subsequently measured at amortised cost using the effective interest rate. Minimum lease payments are fixed payments or index-based variable payments incorporating the Group’s expectations of extension options and do not include non-lease components of a contract. The lease liability is re-measured when there are changes in future lease payments arising from a change in rates, index, or lease terms from exercising an extension or termination option. A corresponding adjustment is made to the carrying amount of the lease assets, with any excess recognised in the consolidated statement of comprehensive income. iii) Short-term leases and leases of low-value assets The Group has elected not to recognise assets and lease liabilities for short-term leases (lease term of 12 months or less) and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. 58 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 20. Issued Capital 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Share capital Number of shares $’000 A$’000 Ordinary shares fully paid 886,391,538 907,266,067 311,262 319,570 Movements in issued capital $'000 No. of Shares Balance at 1 January 2024 319,570 907,266,067 Shares bought back (8,308) (20,874,529) Balance at 31 December 2024 311,262 886,391,538 Recognition and measurement Issued and paid-up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction in the proceeds received. Options on issue There are no unissued ordinary shares of the company under option at the date of this report. Capital management gearing ratio 31 Dec 2024 31 Dec 2023 $000 $000 Gearing ratio 1.48% 2.50% Debt 6,153 8,357 Capital1 311,262 319,648 1Includes issued capital and all other equity reserves attributable to the equity holders of the parent for the purpose of the Group’s capital management. The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximise the shareholder’s value. The Group manages its capital structure and adjusts considering changes in economic conditions and the requirements of any financial covenants. To maintain or adjust the capital structure, the Group may return capital to shareholders, buy-back existing shares, or issue new shares. No changes were made in the objectives, policies or processes during the financial periods ended 31 December 2024 and 31 December 2023. 21. Accumulated Profit/(Loss) 31 Dec 2024 $’000 31 Dec 2023 $’000 Carrying amount at the beginning of the period (13,152) (27,737) Net profit attributable to members of the parent entity 102,349 14,585 Carrying amount at the end of the period 89,197 (13,152) 59 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 22. Reserves Share based payments reserve 31 Dec 2024 $’000 31 Dec 2023 $’000 Opening balance at beginning of period 27,815 27,815 Closing balance at the end of the period 27,815 27,815 This reserve is used to recognise the fair value of rights and options issued to employees in relation to equity-settled share-based payments. There were no share-based payments granted during the Reporting Period. 23. Auditor Remuneration 31 Dec 2024 31 Dec 2023 $'000 $'000 Fees to Ernst & Young (Australia) Fees for auditing the statutory financial report of the Parent covering the Group and auditing the statutory financial reports of any controlled entities 195 185 Fees for other services - tax compliance 47 45 Total fees to Ernst & Young (Australia) 242 230 24. Commitments Capital commitments Commitments relating to joint arrangements. At 31 December 2024, the Group has capital commitments that relate principally to the purchase and maintenance of plant and equipment for its mining operations. Refer to note 13. Estimated capital expenditure contracted for at reporting date, but not recognised as liabilities for the Group: 31 Dec 2024 $’000 31 Dec 2023 $’000 Within one year 5,888 6,187 Mineral tenement commitments The Company has tenements in which the mining operations are located. These tenement leases have a life of up to twenty-one years. To maintain current rights to explore and mine the tenements the Group is required to perform minimum exploration work to meet the expenditure requirements specified by the relevant state governing body. The commitments include Renison commitments. 31 Dec 2024 $’000 31 Dec 2023 $’000 Within one year 361 327 After one year but not more than five years 1,442 1,305 After more than five years 572 845 2,375 2,477 60 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 Other commitments The Group has obligations for various expenditures such as state government royalties, production-based payments, and exploration expenditure. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. 25. Interest in Joint Operations The Group has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the consolidated financial statements under the appropriate classifications. Renison Tin Project Subsidiary Bluestone Mines Tasmania Pty Ltd has a 50% interest and participating share in the Renison Tin Project, which is operated and managed by BMTJV. Under the agreement, the Group is entitled to 50% of the production, assets, liabilities and expenses of the joint operation. The Renison Tin Project is located in Tasmania. 26. Key Management Personnel Compensation of Key Management Personnel 31 Dec 2024 $ 31 Dec 2023 $ Short-term employee benefits 1,190,038 1,095,447 Long-term employee benefits 18,552 34,375 Post-employment benefits 119,631 102,572 1,328,221 1,232,394 27. Related Party Disclosure Subsidiaries The consolidated financial statements of the Group include Metals X and the subsidiaries listed as follows: Country of Ownership Interest Name Incorporation 31 Dec 2024 31 Dec 2023 Bluestone Australia Pty Ltd Australia 100% 100% Subsidiary companies of Bluestone Australia Pty Ltd Bluestone Mines Tasmania Pty Ltd Australia 100% 100% Subsidiary companies of Bluestone Mines Tasmania Pty Ltd Bluestone Mines Tasmania Joint Venture Pty Ltd Australia 50% 50% Transactions with related parties Related party transactions (incl GST) Sales to related parties $’000 Purchases and interest charges from related parties $’000 Amounts owed by related parties $’000 Amounts owed to related parties $’000 Dragon Mining Limited: Provider of services to Metals X. Dec 2024 - 822 - 2 Dec 2023 - 474 - 51 61 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended 31 December 2024 28. Parent Entity Disclosure 31 Dec 2024 31 Dec 2023 $'000 $'000 Current assets 200,595 143,070 Total assets 260,002 168,500 Current liabilities (55) 130 Total liabilities (166,987) 82,107 Issued capital 333,378 341,685 Accumulated losses (268,178) (283,107) Share based payment reserve 27,815 27,815 Total equity 93,015 86,393 Profit/(loss) of the parent entity 14,929 (18,189) Total comprehensive profit/(loss) of the parent entity 14,929 (18,189) 29. Dividends No dividend has been paid or declared since the commencement of the year and no dividend has been recommended by the Directors for the year ended 31 December 2024 (31 December 2023: nil). 30. Significant Events After Period End There are no significant events after period end as at the date of this report. 62 CONSOLIDATED ENTITY DISCLOSURE STATEMENT For the year ended 31 December 2024 The consolidated financial statements of the Group include Metals X and the subsidiaries listed as follows: Name Entity type Country of Incorporation Percentage of share capital held Country of tax residence Metals X Limited Parent entity Australia N/A Australia Bluestone Australia Pty Ltd Subsidiary Australia 100% Australia Bluestone Mines Tasmania Pty Ltd Subsidiary Australia 100% Australia Bluestone Mines Tasmania Joint Venture Subsidiary Australia 50% Australia 63 DIRECTORS’ DECLARATION For the year ended 31 December 2024 In accordance with a resolution of the Directors of Metals X Limited, I state that: In the opinion of the Directors: (a) the consolidated financial statements and notes of the Group are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the financial position as at 31 December 2024 and the performance for the Reporting Period ended on that date of the Group; and (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and (b) the consolidated financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 1(b) and; (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. (d) the consolidated entity disclosure statement required by section 295(3A) of the Corporations Act is true and correct. (e) 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 31 December 2024. On behalf of the Board Brett Smith Executive Director 27 February 2025 64 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Auditor’s independence declaration to the directors of Metals X Limited As lead auditor for the audit of the financial report of Metals X Limited for the financial year ended 31 December 2024, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; b. No contraventions of any applicable code of professional conduct in relation to the audit; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit. This declaration is in respect of Metals X Limited and the entities it controlled during the financial year. Ernst & Young Gavin Buckingham Partner 27 February 2025 65 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Independent auditor’s report to the members of Metals X Limited Report on the audit of the financial report Opinion We have audited the financial report of Metals X Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 December 2024, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, 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: a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2024 and of its consolidated financial performance for the year ended on that date; and b. 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 auditor independence requirements of 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 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 judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. 66 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Bluestone Mines Tasmania Pty Ltd operations – work of a non-EY component team Why significant How our audit addressed the key audit matter As disclosed in Note 25 to the financial report, a significant component of the Group’s operations and activities take place within its 100% owned Subsidiary Bluestone Mines Tasmania Pty Ltd (“BMTPL”), which has a 50% interest and participating share in the Renison Tin Project in Tasmania (“a component”). The Group’s 50% interest in the assets, liabilities, expenses and cash flows of the component are included within the Group consolidated financial statements and collectively are material to the overall Group result and financial position. In our role as Group auditor, we are required to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities of components within the Group in order to be able to express an audit opinion on the financial report. We are responsible for the direction, supervision, and performance of the Group audit. This was considered a key audit matter, due to the financial significance of the component to the group, which was audited by a non-EY audit team (“Component Auditor”). In fulfilling our responsibilities as Group auditor, our audit procedures included: • Performing risk assessment and component scoping at the Group level, identifying the Component Auditor to be significant to the Group. • Sending out instructions to the Component Auditor describing the audit areas in scope, including the relevant audit risks and the information to be reported to us as the Group auditor. We calculated and communicated the Component Auditor materiality and determined the reporting scopes, having regard to the size and risk profile of the component relative to the Group. • Obtaining written confirmation from the Component Auditor of the work performed and the results, as well as key documents supporting their independence, significant findings and observations. • Visiting the mine site of the component, in order to obtain an understanding of the component’s operations. • Holding meetings with the Component Auditor to enquire about the outcome and extent of their audit procedures performed. • Reviewing the underlying work papers and documentation of the Component Auditor supporting their audit opinion on the results of the component for the year ended 31 December 2024. • Agreeing the trial balance and related supporting schedules audited by the Component Auditor to the Group consolidation schedules, and where relevant, financial statement note disclosures. • Assessing the adequacy of the accounting policies of the component for consistency with the Group’s accounting policies and assessing the Group’s accounting for intercompany transactions with the component. 67 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Convertible Notes Receivable Why significant How our audit addressed the key audit matter As disclosed in Notes 2 and 12 to the financial report, the Group holds $37.40 million in aggregate in convertible notes issued by Cyprium Metals Limited (“Cyprium”). The terms of the convertible notes including the repayment date, interest rate and conversion price were renegotiated during the current year. The Group measures the convertible notes at fair value through profit and loss. The fair value assessment comprises a summation of the fair value of the loan component and the conversion option component of the convertible note. The convertible notes fair value as at 31 December 2024 was assessed at $37.40 million resulting in a fair value gain of $23.40 million being recognised in the consolidated statement of comprehensive income. Given the inherent complexity and judgement required to estimate the fair value of the convertible notes, and the significant fair value gain recognised during the financial year, this was considered a key audit matter. Our audit procedures included: • Read the agreement in relation to the renegotiated convertible notes to understand the changes in the terms and conditions. • Assessed the Group’s measurement of the convertible notes, in accordance with the requirement of the accounting standards, which included understanding the relevant terms and conditions. • Read the valuation report prepared by the Group’s external expert to arrive at an estimate of the fair value of the convertible notes. • Read recent market releases and announcements made by Cyprium for consistency in the market announcements with the considerations adopted by management and the Group’s expert in assessing an appropriate market rate of debt to apply to the carrying value of the convertible notes. • Engaged EY valuation specialists to assess the reasonableness of the valuation methodology and assumptions adopted by the Group’s external expert to determine the fair value of the convertible notes. • Assessed the competency and objectivity of the Group’s external expert engaged to assess the fair value of the convertible notes. • Tested the mathematically accuracy of the valuation of the convertible notes and the fair value gain recognised in the consolidated statement of comprehensive income for the year ended 31 December 2024. • „Assessed the adequacy and appropriateness of the disclosures included in the Notes to the financial statements. 68 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Rehabilitation Provisions Why significant How our audit addressed the key audit matter The Group incurs obligations to restore and rehabilitate the area impacted by mining activities. Rehabilitation activities are governed by a combination of legislative requirements and Group policies. As disclosed in Note 18 to the financial report, the Group's consolidated statement of financial position as at 31 December 2024 includes a provision of $31.80 million in respect of such obligations. We considered this to be a key audit matter because of the significant judgment and estimates associated with estimating the rehabilitation provision including the extent and cost of the rehabilitation and restoration activities and to a lesser extent the timing of when the rehabilitation activities will take place and the economic assumptions of inflation and discount rates. Our audit procedures included: • Assessed via enquiries of the component auditors and review of their work papers the appropriateness of the changes in cost estimates and assumptions underpinning the cost estimates. • With the involvement of our subject matter specialists, we assessed the appropriateness of the rehabilitation cost estimates determined by an independent expert engaged by management for the Bischoff Project in the current year and the Renison project in the prior year. • Assessed the qualifications, competence and objectivity of the Group’s external experts, the work of whom, formed the basis of the Group’s rehabilitation cost estimates for the Bischoff Project and the Renison Project. • Enquired of the component auditors and reviewed work papers to assess the mathematical accuracy of the rehabilitation models and evaluate the appropriateness of the assumed timing of cashflows and the inflation and discount rate assumptions. • Assessed the appropriateness of the classification of the rehabilitation provision as a current and non-current liability as at 31 December 2024. • Assessed the adequacy and appropriateness of the disclosures relating to the Group’s provision for rehabilitation included in the Notes to the financial statements. Information other than the financial report and auditor’s report thereon The directors are responsible for the other information. The other information comprises the information included in the Company’s 2024 annual report other than the financial report and our auditor’s report thereon. We obtained the chairman’s letter and the directors’ report that is to be included in the annual report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and we do not and will not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. 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 on the other information obtained prior to the date of this auditor’s report, 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. 69 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of: ► The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and ► 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: ► The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ► 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 Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 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. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ► Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. ► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. 70 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation ► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. ► Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. ► Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial report. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 31 December 2024. In our opinion, the Remuneration Report of Metals X Limited for the year ended 31 December 2024, complies with section 300A of the Corporations Act 2001. 71 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 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. Ernst & Young Gavin Buckingham Partner Perth 27 February 2025 72 MINERAL RESOURCES AND ORE RESERVES STATEMENT Mineral Resource Estimates (50% MLX) – Consolidated Summary & Annual Comparison Contained Metal Project Tonnes1 Tin Copper Tin Copper (Mt) (%Sn) (%Cu) (kt) (kt) 31 Mar 2023 Renison Bell 20.0 1.54 0.19 308 38.8 Rentails 23.9 0.44 0.22 104 52.7 Total 43.9 0.94 0.21 412 91.4 Mining Depletion Renison Bell (0.751) (1.68) (0.18) (12.6) (1.35) Rentails - - - - - Total (0.751) (1.68) (0.18) (12.6) (1.35) Resource Adjustments Renison Bell 0.86 (0.45) (0.04) (3.91) (0.37) Rentails - - - - - Total 0.86 (0.45) (0.04) (3.91) (0.37) 31 Mar 2024 Renison Bell 20.2 1.45 0.18 291 37.1 Rentails 23.9 0.44 0.22 104 52.7 Total 44.0 0.90 0.20 396 89.7 1Figures are rounded according to JORC Code guidelines and may show apparent addition errors. Contained metal does not imply recoverable metal. Ore Reserve Estimates (50% MLX) – Consolidated Summary & Annual Comparison The Ore Reserve estimates are a subset of the Mineral Resource estimates Tin Copper Project Ore Kt Grade % Sn Tin tonnes Ore Kt Grade % Cu Copper tonnes 31 Mar 2023 Renison Bell 8,224 1.48 121,700 8,224 0.20 16,500 8,224 1.48 121,700 8,224 0.20 16,500 Mining Depletion Renison Bell (751) 1.68 (12,600) (751) 0.18 (1,350) Reserve Adjustments Renison Bell 737 0.42 3,100 737 1.88 13,834 31 Mar 2024 Renison Bell 8,210 1.37 112,200 8,210 0.15 12,500 8,210 1.37 112,200 8,210 0.15 12,500 Renison Bell and Rentails Resources and Reserves are 50% owned by Metals X. The geographic region for Tin Mineral Resources and Ore Reserves is Australia. For further details on total Mineral Resources refer to ASX announcement dated 4 July 2024. For further details on total Ore Reserves refer to ASX announcements dated 31 January 2025. The Company last undertook its annual review of Mineral Resources and Ore Reserves as at 31 March 2024, as announced to ASX on 4 July 2024 and 31 January 2025 respectively. Since that date, immaterial depletion has occurred due to mining activities. The Company proposes to undertake its next annual review of Ore Reserves and Mineral Resources as at 31 March 2025, and release the results to ASX in the September Quarter 2025. 73 COMPETENT PERSONS STATEMENT The information in this report that relates to Mineral Resources has been compiled by Bluestone Mines Tasmania Joint Venture Pty Ltd technical employees under the supervision of Mr Colin Carter B.Sc. (Hons), M.Sc. (Econ. Geol), AusIMM. Mr Carter is a full-time employee of the Bluestone Mines Tasmania Joint Venture Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities 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”. Mr Carter consents to the inclusion in this report of the matters based on his information in the form and context in which it appears, and to this Mineral Resources ad Ore Reserves Statement as a whole. The information in this report that relates to Renison Bell underground Ore Reserves has been compiled by Bluestone Mines Tasmania Joint Venture technical employees under the supervision of Mr Philip Bremner, B Engineering (Mining Engineering), AusIMM. Mr. Bremner is a principal mining consultant at Oreteck Mining Solutions. Mr Bremner has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities 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”. Mr Bremner consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The Company confirms in relation to the abovementioned Mineral Resources and Ore Reserves that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. STATEMENT OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS In accordance with ASX Listing Rule 5.21.5, governance of the Company’s Mineral Resources and Ore Reserves development and management activities are managed through the management team of Renison in Tasmania which is 50%-owned by Metals X through the BMTJV. Senior geological and mining engineering staff of the BMTJV oversee reviews and technical evaluations of the estimates and evaluates these with reference to actual physical, cost and performance measures. The evaluation process also draws upon internal skill sets in operational and project management, ore processing and commercial/financial areas of the business. The BMTJV Management Committee of which Metals X has three members is responsible for monitoring the planning, prioritisation and progress of exploratory and resource definition drilling programs across the Company and the estimation and reporting of resources and reserves. These definition activities are conducted within a framework of quality assurance and quality control protocols covering aspects including drill hole siting, sample collection, sample preparation and analysis as well as sample and data security. A four-level compliance process guides the control and assurance activities by the BMTJV: 1. Provision of internal policies, standards, procedures and guidelines; 2. Mineral Resources and Ore Reserves reporting based on well-founded assumptions and compliance with external standards such as the Australasian Joint Ore Reserves Committee (JORC) Codes; 3. Internal review of process conformance and compliance; and 4. Internal assessment of compliance and data veracity. The BMTJV Management Committee aims to promote the maximum conversion of identified mineralisation into Mineral Resources and Ore Reserves compliant with JORC 2012. The Company reports its Mineral Resources and Ore Reserves, as a minimum, on an annual basis, in accordance with ASX Listing Rule 5.21 and clause 14 of Appendix 5A (the JORC Code). Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by the Company are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and/or the Australian Institute of Geoscientists (AIG) and qualify as Competent Persons as defined in the JORC Code. CORPORATE GOVERNANCE The Company’s 2025 Corporate Governance Statement is available for in the Corporate Governance section of the Company’s website: https://www.metalsx.com.au/aboutus/corporate-governance/. 74 SECURITY HOLDER INFORMATION As at 20 March 2025 Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is as follows. Unless otherwise stated, the information is current as at 20 March 2025. Issued Equity Capital Ordinary Shares Number of holders 4,850 Number on issue 886,391,538 Voting Rights The voting rights for each class of security on issue are: Ordinary fully paid shares Each ordinary shareholder is entitled to one vote for each share held. Options The holders of options have no rights to vote at a general meeting of the Company. The Company has no options on issue. Distribution of Holdings of Equity Securities Fully Paid Ordinary Shares Ordinary Shares Range Total Holders Units % Units 1 - 1,000 394 146,756 0.02 1,001 - 5,000 1,372 3,862,513 0.44 5,001 - 10,000 949 7,606,522 0.86 10,001 - 100,000 1,801 59,435,953 6.71 100,001 Over 334 815,339,794 91.98 Total 4,850 886,391,538 100.00 Unmarketable Parcels The number of shareholders holding less than a marketable parcel was 288 as at 20 March 2025 (being 770 shares based on a closing share price of $0.65 at 20 March 2025). 75 SECURITY HOLDER INFORMATION (Continued) As at 20 March 2025 Substantial Shareholders Substantial Shareholders as disclosed in substantial shareholder notices provided to the Company as at 20 March 2025. Number of Ordinary Shares Percentage (%) APAC Resources Limited and its related bodies corporate1 206,321,221 23.28 Bank of America Corporation and its related bodies corporate2 46,825,557 5.28 1. As lodged on 20 September 2024. 2. As lodged on 24 March 2023. On Market Buy Back On 7 March 2025, the Company announced an extension to the on-market share buy-back of up to 10% of its issued share capital on-market over a 12 month period. Restricted Securities The Company has no restricted securities on issue. Top 20 Shareholders Rank Name Number of Ordinary Shares Percentage (%) 1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 184,519,807 20.82 2 CITICORP NOMINEES PTY LIMITED 119,240,644 13.45 3 EVERBRIGHT SECURITIES INVESTMENT SERVICES (HK) LTD79,636,595 8.98 4 BNP PARIBAS NOMINEES PTY LTD 46,974,304 5.30 5 JINCHUAN GROUP LTD 44,000,000 4.96 6 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 40,098,914 4.52 7 FARJOY PTY LTD 36,621,831 4.13 8 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 27,323,506 3.08 9 BNP PARIBAS NOMS PTY LTD 19,661,008 2.22 10 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 14,881,652 1.68 11 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 14,706,009 1.66 12 BNP PARIBAS NOMINEES PTY LTD 12,101,854 1.37 13 ABADI INVESTMENTS PTY LTD 11,315,526 1.28 14 WARBONT NOMINEES PTY LTD 9,926,001 1.12 15 MRS YUQIN ZHUANG 8,900,000 1.00 16 BNP PARIBAS NOMS PTY LTD 6,946,561 0.78 17 NGE CAPITAL LIMITED 6,155,684 0.69 18 NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT> 4,304,031 0.49 19 JETOSEA PTY LTD 4,080,933 0.46 20 MR RAM SHANKER KANGATHARAN 3,400,000 0.38 Total 694,794,860 78.38 76