LIKELY DEVELOPMENTS The Group will continue its mineral exploration and development activities over the next financial year with a focus on the Araxa Niobium Project in Brazil and its Australian projects the Mt Alexander Project and the Paterson Project. Further commentary on planned activities over the forthcoming year is provided in the “Review of Operations”. The Board will continue to focus on creating value from the Group’s existing resource assets, as well as considering new opportunities in the resources sector to complement the Group’s current projects. SIGNIFICANT CHANGES IN STATE OF AFFAIRS There has not been any significant change in the state of affairs of the Group during the financial year, other than as noted in this financial report. Subsequent to the year end the Company announced that it had entered into a binding conditional agreement to acquire all the issued capital of Itafos Araxá Mineracao E Fertilizantes S.A (“Itafos Araxá”) which owns 100% of the advanced niobium-REE Araxá Project in Minas Gerais, Brazil (“Araxá” or “the Project”). The closing of the transaction is subject to the completion (or waiver) of certain conditions by November 3, 2024. ENVIRONMENTAL ISSUES The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all applicable regulations when carrying out exploration work. MATERIAL BUSINESS RISKS The Company’s activities are subject to numerous risks, mostly outside the Board’s and management’s control. These risks can be specific to the Company, common to the mining industry and common to the stock market. The key risks affecting the Company and potentially its future performance include, but are not limited to the below: – Exploration Risk – Future Funding Risk – Regulatory Risk – Availability of Equipment and Contractors – Key Personnel Risk – Macro-Economic Risk This is not an exhaustive list of risks faced by the Company or an investment in it. A discussion on each of these named risk factors is outlined below: Exploration Risk The success of the Company depends on the delineation of economically mineable reserves and resources, access to required development capital, movement in the price of commodities, securing and maintaining title to the Company’s exploration and mining tenements and obtaining all consents and approvals necessary for the conduct of its exploration activities. Exploration on the Company’s existing tenements may by unsuccessful, resulting in a reduction in the value of those tenements, diminution in the cash resources of the Company and possible relinquishment of the tenements. The exploration costs of the Company are based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these estimates and assumptions. Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in practice, which may materially and adversely affect the Company’s viability. If the level of operating expenditure required is higher than expected, the financial position of the Company may be adversely affected. The Company may also experience unexpected shortages or increases in the costs of consumables, spare parts and plant and equipment. Future Funding Risk The Company’s ongoing activities are expected to require further funding in the future. Any additional equity funding may be dilutive to shareholders and may be undertaken at lower prices than the current market price. Although the Directors believe that additional capital can be obtained, no assurances can be made that appropriate capital or funding, if and when needed, will be available on the terms favourable to the Company or at all. If the Company is unable to obtain additional financing as needed, it may be required to reduce, delay or suspend its exploration activities and this could have a material adverse effect on the Group’s activities and could affect the Group’s ability to continue as a going concern. Directors’ Report continued 16 St George Mining Limited Annual Report 2024
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