Financial Performance - The company recorded profit growth despite challenges in the fiscal year ending December 31, 2023[4] - The company reported a pre-tax profit of AUD 7.5 million for the year ending December 31, 2023, compared to AUD 4.7 million in 2022, and a post-tax profit of AUD 5.2 million, up from AUD 2.5 million in 2022[85] - Revenue increased by 15.2% to AUD 60.5 million, driven by the sale of 20,893 ounces of gold at an average price of USD 1,943 per ounce, compared to 20,296 ounces sold at USD 1,802 per ounce in 2022[85] - Total sales costs rose by 20.8% to AUD 54.6 million, including AUD 9.7 million in depreciation, with significant increases in mining costs (up 6.2%) and processing costs (up 15.6%) compared to the previous year[86] - The gross profit decreased by 19.0% to AUD 6.0 million, with a gross margin of 9.8%, down from 14.0% in 2022[90] Production and Resource Estimates - Total production from Vammala production center reached 3.8 million tons of ore, yielding 650,000 ounces of gold[11] - The total production from Svartliden production center amounted to 3.4 million tons of ore, yielding 490,000 ounces of gold[11] - The total production from the group reached 14 million ounces of gold, with an average grade of 3.2 grams per ton[11] - The total production from Orivesi gold mine was 270,000 ounces, with an average grade of 5.3 grams per ton[11] - The total estimated mineral resources at Orivesi gold mine is 2.6 grams per ton, with a potential gold price of $1,770 per ounce based on current economic conditions[17] - The total estimated mineral resources at Svartliden gold mine is 1.0 grams per ton for open-pit materials and 1.7 grams per ton for underground materials, with a potential gold price of $1,500 per ounce[20] - The total estimated mineral resources at Kaapelinkulma gold mine is 0.9 grams per ton for the northern area and 1.5 grams per ton for the southern area, with a potential gold price of $1,800 per ounce[16] - The total estimated ore reserves for the group are 4,200 tons of gold, with an average grade of 2.7 grams per ton[22] Environmental and Regulatory Matters - The company is awaiting a decision from the Swedish Supreme Court regarding an appeal on environmental permits for mining operations[4] - The Vammala environmental permit was upheld, allowing production capacity at the Vammala plant to remain at a maximum of 300,000 tons per year[78] - The company is appealing a court decision that denied its application for an environmental permit for full-scale mining at Fäboliden, with the appeal process expected to take six to eight months[82] - The company is committed to sustainable mining practices and has submitted a self-assessment report to the TSM network for approval[72] - The company is actively exploring the possibility of utilizing waste rock outside the mining area, requiring modifications to current environmental permits[174] Operational Efficiency and Safety - The processing recovery rate for the Jokisivu mine is 85%[23] - The processing recovery rate for the Fäboliden mine is 80%[23] - The processing recovery rate at Vammala was 84.9%, down from 85.9% in 2022[52] - The company confirmed that there is no new data that would significantly impact the ore reserves reported on March 18, 2024[36] - The lost time injury frequency for the year was reported at 26.7, slightly down from 26.9 in 2022[47] - The company has not reported any work-related fatalities since its establishment[48] - The company is committed to maintaining a safety culture and has implemented numerous health and safety measures across its operations[46] Exploration and Development Activities - The company is focused on developing existing and new mining assets within reasonable proximity to its processing plants in Finland and Sweden[114] - The exploration rights for Kaapelinkulma and Orivesi gold mines remain valid, with ongoing exploration and assessment activities planned[58][61] - In 2023, the company completed 75 diamond drill holes totaling 9,607 meters at the Jokisivu gold mine, compared to 43 holes and 7,659 meters in 2022[125][134] - Significant high-grade intersections were reported, including 3.80 meters at 35.14 g/t gold in the Arpola-1 area and 2.10 meters at 20.20 g/t gold in the Arpola-2 area[136] - The company is actively pursuing new exploration permits in the Svartliden area to secure targeted geological activities[151] Financial Management and Investments - The company reported a net asset value of AUD 68.8 million as of December 31, 2023, up from AUD 60.6 million in 2022, and a working capital surplus of AUD 35.5 million[95] - The company increased its unsecured loan financing with AP Finance Limited to AUD 27.0 million to cover expected environmental guarantees in Finland and Sweden[96] - The loan financing agreement was amended to extend the term to June 30, 2025, with an interest rate change to HIBOR plus 3%[99] - The company has not used foreign exchange hedging during the year, despite facing risks from currency fluctuations, as most costs are denominated in Swedish Krona and Euro while sales are in USD[104] - The company has repurchased 30,000 shares at a total cost of HKD 24,900 (approximately AUD 4,619) in January 2023, with the aim of enhancing shareholder value[120] Management and Governance - Independent non-executive director Mr. Pan Renwei has over 20 years of experience in auditing and accounting, currently serving as the financial director of a listed company in Hong Kong[196] - CFO Mr. Daniel Broughton has over 15 years of experience in financial operations within listed mining companies, ensuring compliance with corporate and statutory obligations[198] - Financial and Administrative General Manager Ms. Päivi Mikkonen oversees administrative and financial functions in the Nordic region, holding multiple advanced degrees in accounting and finance[199] - Chief Geologist Mr. Neale Edwards has over 30 years of experience in mineral exploration and mining, contributing to the discovery of gold resources in Western Australia[200]

Financial Performance - Total customer revenue for the year ended December 31, 2023, was AUD 60,495,000, an increase of 15.4% compared to AUD 52,514,000 in 2022[3] - Gross profit for the year was AUD 5,945,000, down 19% from AUD 7,341,000 in the previous year[3] - Net profit after tax for the year was AUD 5,189,000, representing a 108.4% increase from AUD 2,489,000 in 2022[3] - Basic and diluted earnings per share increased to AUD 3.28 from AUD 1.57, reflecting a growth of 108.2%[3] - Total comprehensive income for the year was AUD 8,167,000, significantly up from AUD 634,000 in 2022[4] - Operating cash flow for the year was AUD 8,668,000, slightly up from AUD 8,436,000 in 2022[8] - The pre-tax accounting profit for 2023 was AUD 5,189 thousand, compared to AUD 2,489 thousand in 2022, indicating a 108.5% increase[129] - The income tax expense for 2023 was AUD 2,338 thousand, up from AUD 2,250 thousand in 2022, reflecting a 3.9% increase[128] - Total operating expenses rose to AUD 5,662 thousand in 2023 from AUD 3,803 thousand in 2022, marking a 48.8% increase[127] Assets and Liabilities - Cash and cash equivalents at year-end increased to AUD 22,168,000 from AUD 17,671,000, a rise of 25.5%[6] - Total assets increased to AUD 108,315,000 from AUD 104,878,000, marking a growth of 3.9%[6] - Total liabilities decreased to AUD 39,557,000 from AUD 44,282,000, a reduction of 10.6%[6] - The group's net current assets stood at AUD 35.5 million as of December 31, 2023, compared to AUD 27.6 million in the previous year, indicating a 28% growth[14] - Trade receivables are initially measured at transaction price, with expected credit losses updated at each reporting date to reflect changes in credit risk[41] - The company recognizes full lifetime expected credit losses for trade receivables when there is a significant increase in credit risk since initial recognition[42] Cash Flow and Financing - The company extended the maturity date of an unsecured loan financing of AUD 27.0 million to June 30, 2025, maintaining all other terms and conditions[14] - The group expects positive operating cash flows from its Finnish operations, supporting its ability to meet debt obligations[16] - The company has an unsecured loan financing of AUD 27,000,000 from AP Finance Limited, with the maturity date extended to June 30, 2025[165] Taxation - Income tax expenses are calculated based on taxable income at the applicable national tax rates for each jurisdiction, adjusted for deferred tax assets and liabilities[28] - The company recognizes deferred tax assets only when it is probable that sufficient future taxable profits will be available[116] - The deferred tax assets related to rehabilitation provisions increased to AUD 3,015 thousand in 2023 from AUD 2,602 thousand in 2022, a 15.9% increase[131] Exploration and Evaluation - Total exploration and evaluation expenditure for 2023 amounted to AUD 1,848,000, a decrease of 17.6% from AUD 2,242,000 in 2022[155] - The exploration write-off for 2023 was AUD 300,000, significantly higher than AUD 34,000 in 2022, indicating increased challenges in exploration[155] Employee Compensation - The company reported a total employee benefits expense of AUD 9,170 thousand in 2023, up from AUD 8,610 thousand in 2022, which is a 6.5% increase[127] - Total remuneration for key management personnel increased by 3.1% from AUD 1,473,589 in 2022 to AUD 1,519,286 in 2023[179] - The five highest-paid employees, including one director, received a total of AUD 1,389,760 in 2023, up from AUD 1,246,142 in 2022, reflecting a significant increase in compensation[181] Shareholder Actions - The company repurchased and canceled 75,000 shares in 2023, resulting in a slight decrease in issued share capital from AUD 140,420,000 to AUD 140,408,000[167] - The total number of shares repurchased and canceled during the year was 75,000, compared to 109,000 shares in 2022[175] - No dividends were declared or paid for the year ending December 31, 2023, consistent with the previous year[169] Accounting Policies - The group has adopted all applicable International Financial Reporting Standards effective from January 1, 2023, with no significant impact on its financial position or performance[11] - Revenue, expenses, and assets are recognized net of goods and services tax (GST), with GST amounts receivable or payable recorded in the consolidated financial position[32] - The company implemented the Australian tax consolidation legislation on July 1, 2003, to determine appropriate amounts of current and deferred tax for the tax consolidated group members[31] Impairment and Valuation - The company reviews the carrying value of its non-financial assets to determine if there are any impairment indicators[71] - Impairment losses are recognized in the income statement when the carrying amount of an asset exceeds its recoverable amount[71] - The recoverable amount of the Vammala cash-generating unit was A$35.9 million as of December 31, 2023, down from A$45.7 million in 2022, primarily due to changes in gold prices and exchange rates[147] Other Financial Information - The company recognized a fair value change of financial assets amounting to AUD 411 thousand in 2023, compared to zero in 2022[127] - The company faced minimal likelihood of default regarding tax liabilities among its entities, indicating a stable tax compliance environment[134] - The group reported significant influence from Asia Pacific Resources Limited, holding a 43.50% equity interest as of December 31, 2023[194]

Financial Performance - Revenue from customers for the six months ended June 30, 2023, was AU$33,155,000, an increase of 35.7% compared to AU$24,403,000 for the same period in 2022[12] - Gross profit for the same period was AU$4,007,000, down 38.1% from AU$6,472,000 in the previous year[12] - Profit after income tax decreased significantly to AU$26,000 from AU$3,619,000, reflecting a decline of 99.3% year-over-year[12] - Basic and diluted earnings per share were 0.02 cents, a decrease from 2.29 cents per share in the prior year[12] - Total comprehensive income for the period was AU$1,693,000, compared to AU$1,548,000 in the same period last year, representing an increase of 9.4%[16] - The profit before tax was AU$649,000, a decrease of 84.7% from AU$4,240,000 in the same period last year[12] - Other revenue for the same period was AU$206,000, compared to AU$0 in 2022, indicating a new source of income[47] - Total employee benefits, including directors' remuneration, amounted to AU$4,354,000, up from AU$4,076,000 in 2022, reflecting a 6.8% increase[47] - The income tax expense recognized for the period was AU$623,000, slightly higher than AU$621,000 in the previous year[51] - The company reported a post-tax segment result of AU$750,000, with Sweden contributing a loss of AU$241,000 and Finland contributing AU$991,000[139] Assets and Liabilities - As of June 30, 2023, total assets amounted to AU$102,482,000, a decrease of 2.3% from AU$104,878,000 as of December 31, 2022[18] - Current assets increased to AU$43,933,000, up 5.2% from AU$41,751,000 at the end of 2022[18] - Cash and cash equivalents rose to AU$22,094,000, reflecting a significant increase of 25.5% from AU$17,671,000[18] - Total liabilities decreased to AU$40,198,000, down 9.3% from AU$44,282,000 at the end of 2022[18] - Trade receivables at June 30, 2023, were AU$2,277,000, down from AU$3,462,000 at December 31, 2022, indicating a decrease of 34.3%[55] - Total inventories decreased from AU$19,991,000 at December 31, 2022, to AU$17,970,000 at June 30, 2023, a reduction of about 10.1%[59] - The net carrying amount of property, plant, and equipment increased to AU$50,410,000 as of June 30, 2023, from AU$54,427,000 at December 31, 2022, indicating a decrease of approximately 7.4%[61] - Trade payables and accruals as of June 30, 2023, amounted to AU$7,666,000, down from AU$8,101,000 at the end of 2022[90] - The current rehabilitation provision as of June 30, 2023, was AU$2,554,000, a decrease from AU$3,114,000 at December 31, 2022[94] - The non-current rehabilitation provision decreased to AU$27,698,000 as of June 30, 2023, from AU$29,245,000 at the end of 2022[94] Exploration and Investment - Exploration expenditure for the period was AU$179,000, up from AU$131,000 in the prior year, indicating increased investment in exploration activities[12] - Capitalized costs related to the Fäboliden project amounted to AU$16.8 million as of June 30, 2023, compared to AU$15.9 million at December 31, 2022[63] - The balance of exploration and evaluation expenditure was AU$1,861,000, a decrease from AU$2,242,000 as of December 31, 2022[86] - The company entered into an agreement with Aurion Resources Ltd for the option to purchase interests for €5.0 million (approximately AU$8.2 million)[153] - The company utilized HK$24.6 million (approximately AU$4.6 million) of net proceeds to fund an environmental bond for the Jokisivu Gold Mine in Finland[160] Governance and Compliance - The Company complied with all code provisions of the Corporate Governance Code during the reporting period[188] - The Audit and Risk Management Committee reviewed the interim results for the half-year period ended June 30, 2023, ensuring compliance with accounting principles[196] - The independent auditor's review concluded that the interim financial information is prepared in accordance with IAS 34 without any significant issues identified[169] - The interim report includes the consolidated interim income statement, consolidated interim statement of comprehensive income, consolidated interim financial position, consolidated interim statement of changes in equity, and consolidated interim cash flow statement[200] Shareholder Information - The Company did not declare or recommend any dividends for the half-year period ended June 30, 2023, consistent with the previous year[198] - The Group's share capital as of June 30, 2023, was AU$140,408,000, with 158,096,613 ordinary shares fully paid, a slight decrease from AU$140,420,000 and 158,171,613 shares as of December 31, 2022[109] - The Company repurchased a total of 105,000 shares during the reporting period, resulting in a reduction of issued shares[113] - The Company’s shares are primarily controlled by a few substantial shareholders, indicating concentrated ownership[182] - APAC Resources Limited holds 45,596,727 shares, representing 28.84% of the total issued shares of the Company[180]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 （股份代號：1712） 中期業績公告 截至2023年6月30日止半年度 龍資源有限公司*（「本公司」或「龍資源」）董事會（「董事會」）謹此公佈本公司及其 附屬公司（統稱為「本集團」）截至2023年6月30日止期間的中期綜合業績，連同截 至2022年6月30日止相應期間的比較數字如下： ...

Financial Performance - The company recorded profit growth despite challenges in the fiscal year ending December 31, 2022[4]. - The company reported a pre-tax profit of AUD 4.7 million for the year ended December 31, 2022, compared to AUD 4.0 million in 2021, and a post-tax profit of AUD 2.5 million, up from AUD 0.3 million in 2021[84]. - Customer revenue increased by 5.0% to AUD 52.5 million, selling 20,296 ounces of gold at an average spot price of USD 1,802 per ounce[85]. - Total sales costs rose by 13.7% to AUD 45.2 million, with mining costs slightly decreasing by 0.1% and processing costs increasing by 4.4%[86]. - Gross profit decreased by 28.6% to AUD 7.3 million, resulting in a gross margin of 14.0%, down from 20.6% in 2021[89]. - The company recorded a significant reduction in Orivesi rehabilitation costs, contributing to the overall improvement in net profit[84]. - As of December 31, 2022, the company had a net asset value of AUD 60.6 million, a working capital surplus of AUD 27.6 million, and a market capitalization of AUD 24.6 million[93]. - The company's debt-to-equity ratio as of December 31, 2022, was 2.4%, down from 3.4% in 2021[94]. - The company has an unsecured loan financing of AUD 12 million with AP Finance Limited, with the loan term extended to June 30, 2024[95]. - The company repurchased a total of 47,000 shares at a total cost of HKD 37,520 (approximately AUD 7,195) during the year ended December 31, 2022[117]. Mining Operations and Production - The company operates gold mining and processing facilities in Finland and Sweden, with annual production in Finland ranging from 21,000 to 30,000 ounces of gold[40]. - The total gold production for the Vammala production center reached 720 tons, with an average grade of 4.0 g/t, contributing to 93,000 ounces of gold[10]. - The total mineral resources for the group amounted to 4,200 tons, with an average grade of 2.7 g/t, equating to 370,000 ounces of gold[21]. - The Orivesi gold mine reported a grade of 2.6 g/t, with a total of 270 tons of ore reserves, translating to 46,000 ounces of gold[16]. - The Svartliden production center's total resources included 220 tons of gold at an average grade of 3.4 g/t, yielding 24,000 ounces[20]. - The Fäboliden gold mine's open-pit resources were estimated at 98 tons with a grade of 3.5 g/t, resulting in 11,000 ounces of gold[21]. - The Jokisivu gold mine's underground resources totaled 400 tons at a grade of 2.4 g/t, producing 30,000 ounces of gold[22]. - The total ore reserves for the Svartliden production center were reported at 5,200 tons with an average grade of 3.3 g/t, yielding 570,000 ounces[20]. - The Vammala processing plant processed 324,940 tons of ore with an average gold grade of 2.3 g/t, resulting in a production of 21,030 ounces of gold, a decrease of 10.2% compared to the previous year[52]. - The total mining volume at Jokisivu was 319,535 tons with a gold grade of 2.6 g/t, with 180,084 tons sourced from ore recovery[54]. - The processing recovery rate at Vammala was 85.9%, slightly down from 86.6% in the previous year[53]. - The company confirmed that there were no significant changes to the exploration results reported on April 6, 2022, and February 9, 2023[36]. Environmental and Regulatory Challenges - The Swedish Land and Environment Court rejected the company's application for an environmental permit for the Fäboliden mining project in July 2022, and the appeal was also denied[4]. - The company faced potential delays in its environmental permit application for full-scale mining at Fäboliden, which could adversely affect its 2023 performance[78]. - The company has encountered challenges in obtaining necessary permits for exploration and production activities, which may lead to increased costs and delays[79]. - The company is actively seeking environmental approval for full-scale mining activities at Fäboliden, with the application submitted to the Land and Environment Court in July 2018[168]. - The company has faced challenges regarding the environmental impact of mining on reindeer herding and property owners along the roads, leading to the rejection of the environmental permit application[169]. - The company submitted an environmental impact assessment along with a permit modification application to the Land and Environment Court on June 30, 2021, and provided supplementary information by November 1, 2021[164]. - The company submitted a detailed appeal to the appellate court on December 15, 2022, after the Land and Environment Court rejected the application for an environmental permit for full-scale mining at Fäboliden[169]. - The appellate court ruled on March 14, 2023, not to grant permission for the appeal regarding Fäboliden[169]. Exploration and Development Activities - The company is continuing cleanup work at the Orivesi site in collaboration with former mine owner Outokumpu, expected to be completed in 2023[5]. - The company maintains valid exploration rights for Kaapelinkulma, with exploration and evaluation activities resuming in the second half of the year, including 20 diamond drill holes[58]. - The company completed 63 diamond drill holes totaling 9,312 meters in Finland during the year, compared to 69 holes totaling 10,075 meters in 2021[125]. - The company has been actively exploring its projects to maintain and enhance production, having produced over 800,000 ounces of gold since entering the Nordic region in 2000[122]. - In 2022, the company completed 43 underground diamond core drilling holes at Jokisivu, advancing 7,658 meters, compared to 56 holes and 9,396 meters in 2021[130]. - The company applied for a new exploration permit in the Orivesi area covering 130.94 hectares, including geophysical anomalies near the Koukkujärvi copper-zinc site[137]. - The company applied for a new exploration permit in the Svartliden area covering 813 hectares to secure identified targets amid increased competitor activity[143]. - The company identified priority exploration targets in the Fäboliden area and applied for a 959-hectare exploration permit[142]. Health and Safety - The lost time injury frequency rate increased to 26.9 from 9.9 in the previous year, indicating a significant rise in workplace injuries[47]. - The company has implemented extensive health and safety measures, including regular inspections and safety training for new employees[45]. - The company has implemented systematic improvements in occupational health and safety performance, including employee training and risk management systems[77]. Corporate Governance and Management - The company is committed to corporate governance, with compliance to the Hong Kong Stock Exchange's corporate governance code[199]. - The board of directors includes Brett Robert Smith as CEO and executive director, and Carlisle Caldow Procter, Bai Weiqiang, and Pan Renwei as independent non-executive directors, confirming their independence as of the report date[199]. - The company has a strong management team with extensive experience in mining and processing, including key personnel like Petteri Tanner, Joshua Stewart, Heikki Miettunen, and Jaakko Larkomaa[188][189][190][191]. - The company emphasizes safety, environmental performance, and operational efficiency across its mining and processing activities[188].

Financial Performance - Revenue for the six months ended June 30, 2022, was AU$24,403,000, a decrease of 4.6% from AU$25,590,000 in the same period of 2021[8] - Gross profit for the same period was AU$5,592,000, significantly up from AU$2,875,000, reflecting a gross margin increase[8] - Profit before tax was AU$4,240,000, compared to AU$697,000 in the prior year, indicating a substantial improvement[8] - Profit after income tax for the period was AU$3,619,000, a turnaround from a loss of AU$266,000 in the previous year[10] - Total comprehensive income for the period was AU$1,548,000, compared to a loss of AU$286,000 in the same period last year[10] - Basic and diluted earnings per share were 2.29 cents, a significant increase from a loss of 0.17 cents per share in the prior year[8] - The company reported a profit for the period of AU$3,619,000, compared to a loss of AU$266,000 in the previous period[13] - Total comprehensive income for the period was AU$1,548,000, after accounting for other comprehensive losses[13] - For the six months ended June 30, 2022, the Group achieved a profit before tax of AU$4.240 million, compared to AU$0.697 million for the same period in 2021, indicating a significant increase in profitability[36] - The net profit after income tax for the period was AU$3.619 million, a turnaround from a net loss of AU$0.266 million in the previous year[36] Assets and Liabilities - Total assets increased to AU$102,752,000 as of June 30, 2022, up from AU$95,300,000 at December 31, 2021, representing an increase of 7.7%[12] - Current assets totaled AU$41,456,000, a slight increase from AU$40,099,000, reflecting a growth of 3.4%[12] - Non-current assets rose to AU$61,296,000, compared to AU$55,201,000, marking an increase of 11.3%[12] - Total liabilities increased to AU$41,235,000 from AU$35,331,000, which is an increase of 16.8%[12] - Net assets reached AU$61,517,000, up from AU$59,969,000, indicating a growth of 2.6%[12] Cash Flow and Financing - As of June 30, 2022, the Group had cash and cash equivalents of AU$14.053 million, slightly down from AU$14.370 million at the end of 2021[37] - The Group's working capital surplus increased to AU$29.788 million as of June 30, 2022, compared to AU$29.048 million at the end of 2021[37] - The Group has an unsecured AU$12.000 million loan facility with AP Finance Limited, with the repayment date extended to December 31, 2023[37] - Net cash from operating activities for the six months ended June 30, 2022, was AU$2.376 million, up from AU$0.450 million in the same period of 2021[36] - The net cash used in investing activities was AU$1.751 million for the period, compared to AU$0.874 million in the previous year[36] - The Group's cash flows from financing activities resulted in a net cash outflow of AU$0.111 million, contrasting with a net inflow of AU$3.583 million in the same period of 2021[36] Exploration and Evaluation - Exploration expenditure for the six months was AU$1,971,000, slightly higher than AU$1,954,000 in the previous year[8] - Total mineral exploration and evaluation expenditure for the six months ended June 30, 2022, was AU$1,823,000, compared to AU$1,625,000 for the same period in 2021[112] - Exploration write-off for the period was AU$33,000, primarily from Finland[143] Environmental and Regulatory Matters - The Swedish Court rejected the company's application for an environmental permit for full-scale mining at Fäboliden on June 28, 2022, despite the environmental impact assessment being approved[48] - The company lodged an appeal on July 19, 2022, requesting an extension until December 15, 2022, to submit detailed grounds of appeal on the ruling[49] - The company has lodged an appeal with the Swedish Land and Environmental Court regarding the environmental permit for Fäboliden, with an extension granted until December 15, 2022[103] Corporate Governance and Compliance - The company has complied with all code provisions of the Corporate Governance Code during the half-year period ended June 30, 2022[187] - The Audit and Risk Management Committee reviewed the interim results for the half-year period ended June 30, 2022, ensuring adherence to accounting principles[194] - Ernst & Young conducted a review of the interim financial information in accordance with international standards, confirming the accuracy of the financial statements[194] Employee and Shareholder Information - Total employee benefits, including directors' remuneration, amounted to AU$4,076,000, an increase of 2.7% from AU$3,969,000 in the previous year[76] - The company’s total employee entitlements as of June 30, 2022, amounted to AU$5,778,000 for current provisions, compared to AU$3,114,000 at the end of 2021[118] - The company did not declare any interim dividends for the period ended June 30, 2022, consistent with the previous year[131] - The Company and its subsidiaries did not purchase, sell, or redeem any shares during the half-year ended 30 June 2022[200]

Financial Performance - The company recorded a profit for the year ending December 31, 2021, despite a decrease compared to previous periods[6] - For the year ended December 31, 2021, the company recorded a pre-tax profit of AUD 4.0 million, down from AUD 10.5 million in 2020, and a post-tax profit of AUD 0.3 million, down from AUD 10.2 million in 2020[83] - The company sold 20,711 ounces of gold in 2021, generating operational revenue of AUD 50.0 million, a decrease of 27.8% compared to AUD 69.3 million in 2020, primarily due to a 26.1% reduction in actual gold sales[85] - The total sales cost for the year was AUD 41.8 million, a decrease of 19.1% from AUD 51.6 million in 2020, with mining costs increasing by 12.9%[86] - The gross profit for the year was AUD 8.3 million, down from AUD 17.7 million in 2020, resulting in a gross margin of 16.5%, compared to 25.5% in the previous year[91] - The company reported a significant increase in reclamation costs, with a 99.0% rise to AUD 2.0 million due to additional obligations related to waste removal[87] - The company’s debt-to-equity ratio as of December 31, 2021, was 3.4%, down from 6.3% in 2020[96] - The company has an unsecured loan financing of AUD 12.0 million from AP Finance Limited, with a voluntary repayment of AUD 3.0 million made on January 6, 2021[97] - The net proceeds from the share placement on January 22, 2021, amounted to AUD 6.6 million, which will be used to pay environmental bond obligations related to operations in Finland and Sweden[103][106] Mining Operations and Production - The Fäboliden trial mining operations have been completed, with the main court hearing for the environmental permit expected in April 2022[7] - The performance of the Jokisivu project in Finland was satisfactory, and the open-pit mining at Kaapelinkulma has been completed[7] - The total gold production from Vammala Production Center (VPC) was 650 tons with an average grade of 4.3 g/t, contributing 90,000 ounces in total[14] - The total gold production from Svartliden Production Center (SPC) was 220 tons with an average grade of 3.4 g/t, contributing 24,000 ounces in total[14] - The overall group total production reached 870 tons with an average grade of 4.1 g/t, resulting in 110,000 ounces of gold[14] - The total mining volume at Jokisivu was 337,150 tons with an average gold grade of 2.5 grams per ton, an increase from 288,641 tons in 2020[56][57] - The total mining volume at Kaapelinkulma was 22,795 tons with a gold grade of 3.6 grams per ton, with mining activities ceasing in April 2021[59] - The gold production at Vammala for 2021 was 23,411 ounces, with an average ore grade of 2.7 grams per ton and a processing recovery rate of 86.6%[52][55] - The group processed 305,933 tons of ore at Vammala, down from 316,237 tons in 2020, due to throughput limitations[55] - The recovery rate for ore processing at Svartliden was 80.8% in 2021, an increase from 80.0% in 2020, while the recovery rate for concentrate processing was 94.4%, down from 94.9%[65] Mineral Resources and Reserves - The estimated mineral resources and ore reserves as of December 31, 2021, were disclosed in accordance with the JORC Code[10] - The company ensures that the estimated mineral resources and ore reserves are derived under good management arrangements and internal controls[10] - The independent mining consultant MoJoe Mining Pty Ltd. is responsible for the estimation of mineral resources and ore reserves[10] - The company will report mineral resources and ore reserves at least annually, or promptly if there are any significant changes during the year[10] - The mineral resource estimates include ore reserves from the Vammala production center in southern Finland and the Svartliden production center in northern Sweden[12] - The total estimated ore reserves for the group amount to 4,300 thousand tons, with an average gold grade of 2.8 grams per ton[24] - The Jokisivu gold mine has an estimated ore reserve of 1,500 thousand tons, with a gold grade of 2.5 grams per ton, based on a variable gold price of $1,730 per ounce[25] - The Fäboliden gold mine has an estimated ore reserve of 2,800 thousand tons, with a gold grade of 3.5 grams per ton, based on a long-term gold price forecast of $1,500 per ounce[25] - The average gold grade across the group's reserves is 2.8 grams per ton, with a total gold content of 380 thousand ounces[24] Environmental and Safety Practices - The company emphasizes responsible environmental practices and aims to improve its environmental performance while adhering to regulatory requirements across four countries[69] - The company is actively pursuing environmental permits for full-scale mining operations at Fäboliden, with a court hearing scheduled for April 2022[66] - The company is committed to maintaining a safety culture and has implemented various health and safety measures across its operations[44] - The lost time injury frequency rate improved to 9.9 in 2021 from 12.81 in 2020, indicating enhanced safety measures[45] - The group has not experienced any work-related fatalities since its establishment[46] - The company continues to monitor the impact of tailings dust on local residents, with assessments indicating no health risks[157] - The company has agreed to install a new crusher to further reduce noise levels at the Vammala facility[157] - The company completed an environmental health and risk assessment update for the Vammala tailings area with the help of Ramboll[160] Exploration and Development - The company continues to maintain exploration rights at both Kaapelinkulma and Orivesi, with ongoing exploration and assessment activities planned for the regions[60][61] - The company is awaiting approval for the closure plan of the Orivesi mine, with exploration activities still ongoing in the area[61] - The company completed 69 diamond drill holes totaling 10,075 meters in Finland and 13 drill holes totaling 1,368 meters in Sweden during the year[132] - The company has produced nearly 800,000 ounces of gold over the past 16 years through its operations in the Nordic region[130] - The company is investigating the potential for reprocessing stored waste rock from Kaapelinkulma as construction aggregate, with further examination planned for 2022[174] - The company received results from 8 diamond drilling holes at Kaapelinkulma, with the best interval being 0.80 meters at 11.65 g/t, which was below expectations[145][146] - The Uunimäki gold project received exploration permits, covering 89.22 hectares, with previous drilling activities totaling 36 holes and 3,424 meters[148] Future Outlook and Strategic Initiatives - The company is actively monitoring risks including political protests and geopolitical developments that may impact operations and costs[80] - The company plans to focus on developing existing and new mining assets within reasonable proximity to its processing plants in Vammala, Finland, and Svartliden, Sweden[122] - The management team emphasized the importance of sustainability initiatives, aiming for a reduction in carbon footprint by H% over the next five years[193] - The company plans to enhance its digital marketing efforts, increasing the budget by I% to improve customer engagement and retention[193] - The board of directors is focused on improving corporate governance practices, with new policies expected to be implemented by the end of the fiscal year[193]

Financial Performance - Revenue from customers for the six months ended June 30, 2021, was AU$25,590,000, a decrease of 29% compared to AU$35,921,000 for the same period in 2020[11] - Gross profit for the six months ended June 30, 2021, was AU$2,875,000, down 68.7% from AU$9,182,000 in the prior year[12] - Profit before tax for the six months ended June 30, 2021, was AU$697,000, a significant decline from AU$6,258,000 in the same period of 2020[14] - The company reported a loss after income tax of AU$266,000 for the six months ended June 30, 2021, compared to a profit of AU$6,258,000 in the previous year[15] - Basic and diluted loss per share for the six months ended June 30, 2021, was (0.17) cents, compared to earnings of 4.51 cents per share in the same period of 2020[17] - Total comprehensive loss for the period was AU$286,000, compared to a comprehensive income of AU$6,759,000 for the same period in 2020[18] - The company reported a net loss of AU$266,000 for the period, compared to a profit of AU$6,258,000 in the previous period[21] - The Group achieved a profit before tax of AU$0.7 million and a net loss after income tax of AU$0.3 million for the period ended 30 June 2021, compared to a net profit of AU$6.3 million for the same period in 2020[38] Cash Flow and Assets - Net cash from operating activities was AU$450,000 for the six months ended June 30, 2021, compared to AU$11,915,000 for the same period in 2020, indicating a significant decline[23] - Cash and cash equivalents at the end of the period were AU$17,556,000, up from AU$11,745,000 at June 30, 2020, reflecting a year-over-year increase of 49.8%[23] - Total assets increased to AU$90,661,000 as of June 30, 2021, up from AU$85,397,000 at December 31, 2020, representing a growth of 3.0%[20] - Current assets totaled AU$38,185,000, an increase of 3.3% from AU$36,953,000 at the end of 2020[20] - Total liabilities decreased to AU$30,841,000 from AU$31,919,000, a reduction of 3.4%[20] - Total equity increased to AU$59,820,000 as of June 30, 2021, up from AU$53,478,000 at December 31, 2020, marking an increase of 11.8%[20] - The Group has a working capital surplus of AU$30.3 million as of 30 June 2021, up from AU$27.6 million as of 31 December 2020, and is debt-free at the date of this Interim Report[38] Exploration and Expenditure - The company incurred exploration expenditure of AU$327,000 for the six months ended June 30, 2021, compared to AU$42,000 in the prior year[13] - The total mineral exploration and evaluation expenditure for the period ended June 30, 2021, was AU$4,541,000, an increase from AU$3,989,000 as of December 31, 2020[120] Expenses and Costs - Management and administration expenses for the six months ended June 30, 2021, were AU$1,954,000, slightly up from AU$1,867,000 in the previous year[13] - Total employee benefits, including directors' remuneration, amounted to AU$3,969,000 for the six months ended June 30, 2021, compared to AU$4,224,000 in the same period of 2020, reflecting a decrease of 6%[83] - The company incurred finance costs of AU$18,000 for the six months ended June 30, 2021, down from AU$63,000 in the same period of 2020[82] Taxation - The company recognized an income tax expense of AU$963,000 for the period ended June 30, 2021, with a tax receivable asset of AU$410,000[88] - The income tax expense for the six months ended June 30, 2021, was AU$963,000, with a tax receivable asset of AU$410,000[90] - The company did not make any provision for Hong Kong profits tax as there were no assessable profits derived from or earned in Hong Kong during the period ended June 30, 2021[87] Shareholder Information - The issued share capital increased by a net amount of AU$6,632,371 through the issuance of 20,000,000 ordinary shares at AU$0.33 each on January 22, 2021[149] - The company’s board resolved not to declare any interim dividend for the period ended June 30, 2021, consistent with the previous year[159] - As of June 30, 2021, Allied Properties Resources Limited owns 41,032,727 ordinary shares, representing a 25.83% interest in the Company, up from 19.97% on June 30, 2020[169] Regulatory and Compliance - The Interim Financial Statements are prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and with International Accounting Standard ("IAS") 34 Interim Financial Reporting[33] - The financial statements are presented in Australian dollars (AUD) and values are rounded to the nearest thousand[36] - The Group has adopted the going concern basis of preparation for its financial statements[37] - The financial statements do not include adjustments for potential recoverability or classification of assets and liabilities if operations are put on care and maintenance[51] Market and Operational Insights - The Group operates primarily in gold mining and exploration, with subsidiaries in Sweden and Finland focused on gold production[29] - The Company expects to resolve production issues at the Vammala Plant with a new replacement Crusher planned for installation during the September 2021 maintenance shutdown[45] - The Company anticipates its application for a Permit will be granted following the Main Court Hearing in early 2022, with the County Administration Board supporting the application[49] Impairment and Rehabilitation - The Company identified two impairment indicators related to the Fäboliden Environmental Permit application pending a court hearing in early 2022[109] - The rehabilitation provision increased by AU$1.8 million due to scope changes in the closure plan at Jokisivu[136] - The company has confirmed the addition of rehabilitation provisions for all mines during the reporting period, with Jokisivu showing the largest increase of €1.2 million (approximately AU$1.8 million) due to changes in the closure plan prepared by Envineer Oy[137] Accounting Standards - The Group adopted new accounting standards effective from January 1, 2021, with no material impact on financial position or performance identified[57] - Amendments to IAS 16 prohibit deducting proceeds from the sale of items produced while preparing property, plant, and equipment from its cost, requiring recognition of these proceeds in profit or loss[60] - The amendments aim to ensure consistent application of standards and clarity in financial reporting practices[62]

Mineral Resources and Reserves - The total mineral resource as of December 31, 2020, is estimated at 14,000 thousand tons with a grade of 3.3 grams per ton of gold, equivalent to 1,500 thousand ounces of gold, representing a 1% decrease in tonnage but a 2% increase in ounces compared to December 31, 2019[9]. - The confirmed and inferred total ore reserves as of December 31, 2020, are 3,900 thousand tons with a grade of 2.7 grams per ton of gold, equivalent to 330 thousand ounces of gold, showing a 15% increase in tonnage and a 7% increase in ounces compared to December 31, 2019[9]. - The total estimated gold reserves across all sites amount to 3,900 tons, with a total yield of 330,000 ounces[25]. - The total estimated gold resources are subject to uncertainty and are rounded to two significant figures, reflecting the relative uncertainty of the estimates[16]. - The estimated ore reserves are subject to uncertainty due to limited data on the location, shape, and continuity of the mineral deposits[25]. Production and Economic Performance - Total gold production for the company reached 980 thousand tons, with an average grade of 4.5 grams per ton, resulting in a total of 6,300 ounces produced[13]. - The company reported a total of 1,500 million ounces in gold reserves, with a projected average grade of 3.3 grams per ton[13]. - The Vammala Production Center (VPC) contributed 760 thousand tons of gold, with an average grade of 4.8 grams per ton, producing 1,700 ounces[13]. - The Svartliden Production Center (SPC) produced 220 thousand tons of gold, with an average grade of 3.4 grams per ton, resulting in 4,600 ounces[13]. - Total gold production from the company reached 600 tons with an average grade of 2.6 grams per ton, yielding 51,000 ounces in the latest reporting period[25]. - The company reported a net profit of AUD 10.5 million for the year ended December 31, 2020, compared to AUD 6.3 million in 2019, indicating a significant improvement despite operations in Sweden being below break-even levels[75]. - Customer revenue increased by 30.5% to AUD 69.3 million in 2020, up from AUD 53.1 million in 2019, driven by higher gold sales of 28,035 ounces compared to 25,958 ounces in 2019[78]. - The total sales cost rose by 22.2% to AUD 51.6 million in 2020, up from AUD 42.2 million in 2019, reflecting the proportional increase in revenue[76]. - The gross profit for the year was AUD 17.7 million, with a gross margin of 25.5%, compared to AUD 10.9 million and a margin of 20.5% in 2019[83]. Mining Operations and Development - The company completed trial mining at Fäboliden and is awaiting court hearing dates for the environmental permits required for full-scale mining, with the earliest possible start date projected for 2022[7]. - The performance of Jokisivu and Kaapelinkulma in Finland has been satisfactory, and the company is collaborating with authorities and operators to address waste disposal solutions at the Orivesi old mining site[7]. - The company plans to continue exploring and expanding its mining operations in Finland and Sweden to enhance production capabilities[13]. - The company plans to commence full-scale mining at Fäboliden in 2022, following the environmental permit application process[62]. - The company has initiated a feasibility study for underground mining at Fäboliden following the completion of open-pit mining[111]. Environmental and Regulatory Compliance - The company is committed to environmental sustainability and compliance with regulatory requirements across four countries[66]. - The board is responsible for overseeing the company's environmental, social, and governance strategies and risk management systems[68]. - The company is actively working on environmental assessments and risk mitigation strategies to comply with regulations and community expectations[137]. - The updated water management plan for Jokisivu mine was submitted for approval on August 7, 2020, and construction is expected to be completed between March and September 2021[145]. - The company is actively seeking environmental approval for full-scale mining operations at Fäboliden, with the application submitted in July 2018 and expected court hearings in autumn 2021[157]. Exploration Activities - In 2020, the company completed 167 diamond core drill holes totaling 20,083 meters in Finland, compared to 90 holes and 11,035 meters in 2019[108]. - Significant drill results from the Kujankallio deposit included high-grade intervals such as 2.50 meters at 33.46 g/t gold and 3.55 meters at 21.53 g/t gold, confirming the extension of known mineralization to 560 meters depth[121]. - The Arpola deposit drilling activities produced notable results, including 2.00 meters at 57.54 g/t gold and 5.55 meters at 78.15 g/t gold, further defining the geometry of the targeted areas[121]. - The company initiated early exploration activities at the Orivesi gold mine, completing two plans including a review of historical geophysical data and a geochemical survey, identifying several gold anomalies[126]. - A new exploration permit was applied for the Uunimäki gold project, which previously underwent diamond drilling (36 holes, 3,424 meters) and other exploration activities, indicating potential for high-grade mineralization[128]. Financial Position and Management - The company had cash and cash equivalents of AUD 14.4 million as of December 31, 2020, compared to AUD 8.2 million in 2019, supported by cash inflows from operating activities[85]. - The company's debt-to-equity ratio was 6.3% as of December 31, 2020, down from 15.2% in 2019, indicating improved financial stability[85]. - The company has a strong management team with expertise in geology, mining engineering, and mineral processing, enhancing operational efficiency[175][179][180]. - The management team has a combined experience of over 25 years in the mining industry, ensuring effective leadership and operational success[175][178]. - The company is focused on expanding its market presence through strategic appointments and leveraging the expertise of its directors[167]. Governance and Board Structure - The company has a diverse board with members holding qualifications in law, business administration, and accounting, enhancing its governance structure[167]. - The board includes members with significant experience in mergers and acquisitions, which is crucial for future growth strategies[164]. - The company has appointed independent non-executive directors to strengthen its governance structure and risk management[171][188]. - The board confirmed that independent non-executive directors maintain their independence as of the report date[193]. - The company is committed to maintaining high standards of corporate governance and compliance with statutory obligations[173].

Financial Performance - Revenue from customers for the six months ended June 30, 2020, was AU$35,921,000, an increase from AU$22,271,000 in the same period of 2019, representing a growth of 61.5%[9] - Gross profit for the same period was AU$9,182,000, compared to AU$5,328,000 in 2019, reflecting a 72.5% increase[9] - Profit before tax for the six months ended June 30, 2020, was AU$6,258,000, significantly higher than AU$2,700,000 in 2019, marking a 132.5% increase[9] - Profit after income tax for the period was AU$6,258,000, up from AU$2,700,000 in the previous year, indicating a 132.5% rise[12] - Basic earnings per share attributable to ordinary equity holders was 4.51 cents, compared to 1.94 cents in the same period of 2019, representing an increase of 132.5%[9] - Total comprehensive income for the period was AU$6,759,000, compared to AU$2,751,000 in 2019, showing a growth of 145.5%[15] Expenses and Costs - Total expenses for the six months were AU$(1,867,000), a decrease from AU$(2,199,000) in the same period of 2019, reflecting improved cost management[9] - The cost of sales was AU$26,739,000, an increase of 58% compared to AU$16,943,000 for the same period in 2019[48] - Management and administration expenses decreased to AU$1,867,000 in the first half of 2020 from AU$2,199,000 in the same period of 2019, a reduction of 15%[51] - The total finance costs for the six months ended June 30, 2020, were AU$63,000, significantly higher than AU$22,000 in the same period of 2019, marking an increase of 186%[51] Assets and Liabilities - As of June 30, 2020, total assets increased to AU$79,765,000, up from AU$78,633,000 as of December 31, 2019, reflecting a growth of 1.44%[19] - Total liabilities decreased to AU$29,642,000 as of June 30, 2020, down from AU$35,269,000 at the end of 2019, a reduction of 16.06%[19] - The company’s net assets increased to AU$50,123,000 as of June 30, 2020, compared to AU$43,364,000 at the end of 2019, reflecting a growth of 15.67%[19] Cash Flow - Net cash from operating activities for the six months ended June 30, 2020, was AU$11,951,000, significantly higher than AU$1,200,000 for the same period in 2019, representing a growth of 895.92%[23] - Cash and cash equivalents at the end of the period increased to AU$11,745,000 from AU$8,458,000 at the end of June 30, 2019, marking a rise of 38.88%[23] Exploration and Development - Exploration expenditure for the period was AU$(42,000), compared to AU$(25,000) in 2019, indicating an increase in investment in exploration activities[9] - Payments for development activities amounted to AU$3,762,000 for the six months ended June 30, 2020, compared to AU$2,993,000 in the same period of 2019, an increase of 25.69%[23] - Total mineral exploration and evaluation expenditure for the period was AU$7,045,000, down from AU$8,699,000 in the previous period, representing a decrease of approximately 19%[67] Shareholder Information - There has been no movement in ordinary share capital during the six months ended 30 June 2020, maintaining 138,840,613 shares outstanding[87] - The Board resolved not to declare any interim dividend for the six months ended 30 June 2020, consistent with the previous year[92] - The total number of shares issued by the company was 138,840,613 as of June 30, 2020[134] Compliance and Governance - The consolidated interim financial statements are prepared in accordance with International Accounting Standard (IAS) 34, ensuring compliance with the relevant disclosure requirements[34] - The interim financial information was reviewed and found to be in compliance with IAS 34, ensuring the accuracy of financial reporting[129] - The Company complied with all code provisions of the Corporate Governance Code during the half-year period[153] Environmental and Legal Matters - The Company has a valid environmental test mining permit for Fäboliden and is in the process of obtaining a full mining permit expected to be finalized by early 2021[63] - The Company applied for a retrospective Environmental Permit following the risk assessment findings, indicating proactive compliance with environmental regulations[118] - The Group maintains that PEIC Oy's claims lacked valid basis beyond the amount provided by the Company[114] Production and Operations - Gold production at the Vammala Plant for the half-year ended June 30, 2020, was 12,102 ounces, a decrease of 17.3% compared to the same period in 2019[179] - The Vammala Plant treated 160,342 tonnes of ore with an average grade of 2.8 g/t gold and achieved a process recovery of 85.3%[179] - Gold production from Jokisivu for the period was 10,213 ounces, slightly down from 10,269 ounces in the previous year[186] - At Kaapelinkulma, 30,869 tonnes of ore were mined at a grade of 2.6 g/t, with a significant increase in waste rock removal to 282,435 tonnes[192]