ABN 70 142 361 608
INTERIM FINANCIAL REPORT
For the Half-Year Ended 31 December 2024
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2024 and any public announcements made by Middle Island Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Directors' Report | 3 |
Auditor's Independence Declaration | 6 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 7 |
Consolidated Statement of Financial Position | 8 |
Consolidated Statement of Changes in Equity | 9 |
Consolidated Statement of Cash Flows | 10 |
Notes to the Consolidated Financial Statements | 11 |
Directors' Declaration | 16 |
Independent Auditor's Review Report | 17 |
DIRECTORS' REPORT
Your directors are pleased to present their report on the consolidated entity (referred to hereinafter as the Group) consisting of Middle Island Resources Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2024.
DIRECTORS
The names of the directors who held office during or since the end of the half-year, to the date of this report, are:
Peter Thomas
Brad Marwood
Bruce Stewart
REVIEW AND RESULTS OF OPERATIONS
A summary of consolidated revenues and results for the half-year is set out below:
2024
Revenues
$
Loss for the Period
$
Group revenues and loss | 103,925 | (1,390,792) | |
Corporate
Middle Island Resources Limited (ASX: MDI, Middle Island or the Company), held cash and liquid investments of $2,662,733 as at 31 December 2024, comprising $2,333,805 in cash and A$328,928 in available-for-sale listed equity investments.
Operations Review
Below is a brief outline of what has happened over the last 6 months.
During the second half of the 2024 calendar year the Company was focused on its exploration programmes at its Barkly Copper-Gold Super Project ('Barkly') in the Northern Territory with the completion of the maiden exploration drill programme within the Georgina Project area. Total Barkly Project tenement holdings is 6,918 sq km (granted and in application) where MDI's target generation efforts have established a substantial pipeline of drill targets.
During this report period, the Company completed a three-hole diamond drill programme with holes extending to a depth of 584-6545m. The aim of the maiden drilling programme within the Georgina Project area (EL32109) was to test the IOCG targets at the Wilma, Pebbles and Dino prospects. The drill programme was awarded co- funding from the Northern Territory Government as part of the Resourcing the Territory initiative. The drilling of the first two holes was completed without issue. While no economic visible sulphides were recorded in the holes, the presence of trace copper sulphides and alteration dispersed in the first hole at the large Pebbles prospect is significant. While the target at the Wilma Prospect remains valid, consequent upon encountering unforeseen geology in the cover sequence of the third hole, drilling was suspended pending reassessment of our approach to drilling and that target. The drilling has provided significant information that will be key to refining further drilling, both at Pebbles, with its encouraging footprint, as well as MDI's expansive list of priority targets across the region. The presence of observed possible MVT style mineralisation in the cover rocks is also an interesting development that opens new possibilities for exploration in shallower target positions.
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In addition to the Barkly programmes, there was heightened search activity for new advanced copper-gold projects to compliment the Company's Barkly Project; with several opportunities in Australia screened. With the aim of establishing a future project pipeline. This search for new opportunities ramped up early in 2024 with applications submitted for eight Exploration Permit or Minerals; two of these tenements were granted in the report period and desktop targeting work was commenced. Importantly, as no vends were involved, no dilution or major outlay was involved in the acquisitions.
The Company also solidified its cash position through the sale of its entire share (not option) investment in Aurumin Limited and completed a capital raising via a share placement within the Company's ASX Listing Rule
7.1 and 7.1A placement capacities. The funds raised provide capacity to realise ambitions in identifying and selecting a more advanced project to compliment the Company's major copper-gold project in the NT. The funds will also assist with further exploration on MDI's existing projects and provide general working capital.
Figure 1. Barkly Copper-Gold Super Project, project areas, tenements, and exploration prospect locations. Reported drilling completed is within the Georgina Project area.
This report contains information in relation to exploration results extracted from the Company's previous ASX announcements, which are available to view on the Company's website.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which any Competent Person's findings are presented have not been materially modified from the original market announcements.
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EVENTS SUBSEQUENT TO END OF PERIOD
Sections 203D and 249D Requests
On 14 February 2025, a Shareholder of the Company gave a statutory notice under Section203D and on 17 February, a notice under Section249D of the Corporations Act requesting to convene a meeting of shareholders for the purposes of considering resolutions to:
- remove Chairman, Peter Thomas and Director, Bruce Stewart, as directors of MDI; and
- elect Daniel Raihani and Bill Richie Yang (each a Board Nominee, together the Board Nominees) as directors of MDI.
In response to those notices, the Company has called for a meeting of Members to be held at 10:00am on 7 April 2025 at the Celtic Club, 48 Ord Street West Perth, WA.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.
This Directors' Report is made in accordance with a resolution of directors.
PETER S THOMAS
Chairman
Perth, 14 March 2025
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AUDITOR'S INDEPENDENCE DECLARATION
To those charged with governance of Middle Island Resources Limited
As auditor for the review of Middle Island Resources Limited for the half-year ended 31 December 2024, I declare that, to the best of my knowledge and belief, there have been:
- no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and
- no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Middle Island Resources Limited and the entities it controlled during the period.
Signature of Elderton Audit Pty Ltd affixed to original document and held on file
Elderton Audit Pty Ltd
Signature of Sajjad Cheema affixed to original document and held on file
Sajjad Cheema
Director
14 March 2025
Perth
Limited liability by a scheme approved under Professional Standards Legislation
T +61 8 6324 2900 | E info@eldertonaudit.com | A Level 32, 152 St Georges Terrace, Perth WA 6000 |
ABN 51 609 542 458 | Wwww.eldertongroup.com |
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Half-Year Ended 31 December 2024
31 December | ||
2024 | ||
Note | $ | |
CONTINUED OPERATIONS | ||
REVENUE | ||
Other income | 3 | 103,925 |
Fair value increase on financial assets | 10,999 |
31 December 2023
$
20,686
-
OPERATING EXPENDITURE | ||||
Administration expenses | (226,269) | (365,368) | ||
Depreciation expense | (20,028) | (16,761) | ||
Exploration and evaluation expenses | (895,504) | (663,600) | ||
Fair value losses on financial assets | - | (191,451) | ||
Salaries and employee benefits expense | (363,915) | (215,541) | ||
LOSS BEFORE INCOME TAX | (1,390,792) | (1,432,035) | ||
Income tax | - | - | ||
LOSS FOR THE PERIOD from Continuing Operations | (1,390,792) | (1,432,035) | ||
OTHER COMPREHENSIVE INCOME | ||||
Other comprehensive income for the period, net of tax | - | - | ||
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | ||||
ATTRIBUTABLE TO MEMBERS OF MIDDLE ISLAND | (1,390,792) | (1,432,035) | ||
RESOURCES LIMITED | ||||
Basic and diluted loss per share (cents) from continuing | ||||
(0.57) | (0.93) | |||
operations | ||||
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
31 December | |||
Note | 2024 | ||
$ | |||
Note | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 2,333,805 | ||
Trade and other receivables | 123,730 | ||
Financial assets | 4 | 328,928 | |
TOTAL CURRENT ASSETS | 2,786,463 | ||
NON-CURRENT ASSETS | |||
Plant and equipment | 49,222 | ||
Tenement acquisition costs | 5 | 638,400 | |
TOTAL NON-CURRENT ASSETS | 687,622 | ||
TOTAL ASSETS | 3,474,085 | ||
CURRENT LIABILITIES | |||
Trade and other payables | 6 | 65,430 | |
Employee benefit obligations | 47,580 | ||
TOTAL CURRENT LIABILITIES | 113,010 | ||
TOTAL LIABILITIES | 113,010 | ||
NET ASSETS | 3,361,075 | ||
EQUITY | |||
Contributed equity | 7 | 51,112,120 | |
Reserves | 43,013 | ||
Accumulated losses | (47,794,058) | ||
TOTAL EQUITY | 3,361,075 |
30 June 2024
$
1,702,171
113,564
1,651,942
3,467,677
17,595
638,400
655,995
4,123,672
112,934
38,582
151,516
151,516
3,972,156
50,332,408
43,013
(46,403,265)
3,972,156
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Half-Year Ended 31 December 2024
Contributed | ||||
Equity | ||||
Note | $ | |||
BALANCE AT 1 JULY 2023 | 48,611,091 | |||
Shares issued for acquisition of strategic project | 638,400 | |||
Shares issued pursuant to Renounceable Rights Issue | 1,154,937 | |||
Capital raising costs | (98,220) | |||
Share based payments | - | |||
Loss for the period | - | |||
BALANCE AT 31 DECEMBER 2023 | 50,306,208 | |||
BALANCE AT 1 JULY 2024 | 50,332,408 | |||
Shares issued pursuant to placement | 819,002 | |||
Options exercised | 11,078 | |||
Capital raising costs | (50,368) | |||
Loss for the period | - | |||
BALANCE AT 31 DECEMBER 2024 | 51,112,120 | |||
Share-based
Payments
Reserve
$
-
-
-
-
43,013
-
43,013
43,013
-
-
-
-
43,013
Accumulated
Losses
$
(44,741,172)
-
-
-
-
(1,432,035)
(46,173,208)
(46,403,265)
-
-
-
(1,390,792)
(47,794,058)
Total
$
3,869,919
638,400
1,154,937
(98,220)
43,013
(1,432,035)
4,176,013
3,972,156
819,002
11,078
(50,368)
(1,390,792)
3,361,075
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CASH FLOWS
For the Half-Year Ended 31 December 2024
Half-year Ended: | ||||
31 December | 31 December | |||
2024 | 2023 | |||
$ | $ | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Receipts from customers | 56,818 | - | ||
Interest received | 24,449 | 20,686 | ||
Expenditure on mining interests | (934,756) | (645,184) | ||
Payments to suppliers and employees | (565,627) | (530,080) | ||
Net cash outflow from operating activities | (1,419,116) | (1,154,578) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of available-for-sale assets | 1,440,000 | - | ||
Purchase of available for sale assets | (83,330) | (137,387) | ||
Purchase of plant and equipment | (51,655) | - | ||
Payment for tenement bonds | (33,977) | - | ||
Net cash (outflow)/inflow from investing activities | 1,271,038 | (137,387) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issue of securities | 830,081 | 1,065,813 | ||
Share issue expenses | (50,369) | (3,206) | ||
Net cash inflow from financing activities | 779,712 | 1,062,607 | ||
Net decrease in cash and cash equivalents | 631,634 | (229,358) | ||
Cash and cash equivalents at the beginning of the period | 1,702,171 | 2,659,333 | ||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 2,333,805 | 2,429,975 | ||
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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