Announcement PDF 9O LIMITED OD6 METALS ABN 34 654 839 602 & Controlled Entities Interim Financial Statements For the six months ended 31 December 2024 Corporate Directory DIRECTORS Dr Darren Holden – Non-Executive Chairman (was Non-Executive director until January 2025) Mr Wayne Bramwell – Non-Executive Chairman (resigned on 31 January 2025) Mr Brett Hazelden – Managing Director Mr Piers Lewis – Non-Executive Director Dr Mitch Loan – Non-Executive Director JOINT COMPANY SECRETARY Troy Cavanagh Joel Ives REGISTERED AND PRINCIPAL OFFICE c/- LCP Group Level 1, 50 Kings Park Road West Perth WA 6005 Telephone: +61 8 6189 8515 Email: info@od6metals.com.au AUDITOR Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA 6008 SHARE REGISTRY LAWYERS Computershare Investor Services Pty Limited Level 11, 172 St Georges Terrace Perth WA 6000 AGH Law Level 1, 50 Kings Park Road West Perth WA 6005 STOCK EXCHANGE LISTING BANKERS Australian Securities Exchange (ASX) ASX Code: OD6 National Australia Bank 100 St Georges Terrace, Perth WA 6000 Interim Financial Report 31 December 2024 2 OD6 Metals Limited Directors’ Report 31 December 2024 The Directors of OD6 Metals Limited (“OD6 Metals Limited” or “the Company”) present their report on the Company for the period ended 31 December 2024 (“Period”). DIRECTORS The names of directors in office at any time during or since the end of the year are:      Dr Darren Holden – Non-Executive Director (appointed 27 October 2021); Mr Wayne Bramwell – Non-Executive Chairman (appointed 8 August 2024, resigned 31 January 2025); Mr Brett Hazelden – Managing Director (appointed 1 April 2022); Mr Piers Lewis – Non-Executive Director (appointed 27 October 2021); and Dr Mitch Loan – Non-Executive Director (appointed 12 April 2022). COMPANY SECRETARY Troy Cavanagh and Joel Ives held the position of company secretary during the financial period. PRINCIPAL ACTIVITIES OD6 Metals is an Australian public company pursuing exploration and development opportunities within the critical minerals sector, namely rare earths and copper. Copper The Company is advancing the recently acquired Gulf Creek Copper-Zinc VMS Project located near the town of Barraba in NSW, Australia. Gulf Creek was mined at around the turn of the 20th century and was once regarded as the highest grade copper mine (2% to 6.5% Cu) in NSW until its closure due to weak copper prices in 1912. Very little exploration has occurred at the project in over 100 years, with OD6 aiming to apply modern day exploration technologies. Mineralisation is associated with magnetite, with geophysics showing significant greenfields and brownfields exploration potential exists with over >3km of untested strike in the immediate mine-stratigraphy, and over >10km across the tenement. Rare Earth Elements OD6 Metals has successfully identified clay hosted rare earths at its 100% owned Splinter Rock Project which is located in the Esperance-Goldfields region of Western Australia. The Company released a Mineral Resource Estimate (MRE) for Splinter Rock in May 2024, confirming that the project hosts one of the largest and highest-grade clay-hosted rare earths deposit in Australia with an Indicated Resource of 119Mt @ 1,632ppm TREO and an Inferred Resource of 563Mt @ 1,275ppm TREO with an overall ratio of ~23% high-value Magnetic Rare Earths (MagREE). OD6 Metals believes that Splinter Rock has all the hallmarks of a world class rare earths project with a conceptual development which utilises the large and high-grade Splinter Rock resource to support a long-life REE operation with a low strip ratio REVIEW OF OPERATIONS Gulf Creek Copper Project, NSW  Acquisition of Historic High-Grade Copper–Zinc VMS style project announced on 30 October 2024 and completed on 15 January 2025  Two mineralisation styles associated with high-grade copper have been identified to date at Gulf Creek, one of these is a massive magnetite + chalcopyrite unit. As such, magnetic modelling can assist with locating sub-surface potential accumulations. Interim Financial Report 31 December 2024 3 OD6 Metals Limited Directors’ Report 31 December 2024    The Geophysical modelling identified multiple, high priority, walk up targets and highlights the potential for extensional and repeat high-grade VMS structures at Gulf Creek, including the following highlights – Historic Gulf Creek mine workings – Big Bend Target – West Limb – NW Target – Deep Magnetic Target Conductivity based geophysics survey plus a surface geochemistry survey was completed subsequent to the end of the half year and identified further new target areas Maiden drill program to Commenced on 24 February 2025 subsequent to the end of the half year. Splinter Rock Rare Earth Elements Project, WA  Heap Leach Results a potential game changer for Splinter Rock – Inside Centre Column Leach achieves at 79% Magnet Rare Earth Elements (MagREE) Recoveries in comparison to the diagnostic stirred tank leach of 56% – The Heap Leach has the potential to remove several expensive processing steps, which would reduce capital and operating costs significantly  Phase 4 ANSTO Metallurgical Tests at the Splinter Rock Project continued during the period which is focussed on impurity removal and production of a mixed rare earth concentrate (MREC)  With the established rare earth mineral resources and regional prospectivity of Splinter Rock clearly defined from geophysics, the Company has rationalised its extensive tenement holdings to surrender non-prospective areas and at the same time reduce holding costs. The areas retained also hold significant upside potential for further Resource growth at Splinter Rock. Grass Patch Rare Earth Project, WA  Given the quality, grade and size of the rare earth resource at Splinter Rock, along with the low prospectivity to identify other commodities in the area, a decision has been made to relinquish all the tenement holdings at Grass Patch, which occurred in late 2024 OPERATING RESULTS The loss of the Company after providing for income tax amounted to $2,181,024. FINANCIAL POSITION As at 31 December 2024 the Company had a cash balance of $1,747,262 and a net asset position of $7,098,700. DIVIDENDS PAID OR RECOMMENDED No dividends have been paid, and the directors do not recommend the payment of a dividend for the period ended 31 December 2024. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Other than as disclosed in this report, no significant changes in the state of affairs of the Company occurred during the financial year. EVENTS AFTER THE REPORTING PERIOD    On the 14/01/2025 6,000,000 Ordinary fully paid shares at 5.8c per share were issued as part of the acquisition for the Gulf Creek Project and a payment of $150,000 cash. $48,000 was reimbursed for the environmental bond that was transferred into the name of Gulf Creek Copper Pty Ltd. On the 31/01/2025 the Non-Executive Chair of the company Mr Wayne Bramwell has resigned. On the 19/02/2025 24,555,555 ordinary fully paid shares were issued as part of a placement. Interim Financial Report 31 December 2024 4 OD6 Metals Limited Directors’ Report 31 December 2024 Signed in accordance with a resolution of the Board of Directors. Dr Darren Holden, Non-Executive Chairman Dated 7 March 2025 Perth, Western Australia No new information Except where explicitly stated, this report contains references to prior exploration results or Mineral Resource Estimate of the Splinter Rock Project, all of which have been cross-referenced to previous market announcements made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements. Interim Financial Report 31 December 2024 5 OD6 Metals Limited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Period Ended 31 December 2024 Note Other income Grants/R&D Received 3.1 Accounting and audit Depreciation expense Consultants Directors’ fees (excluding executives) Executives’ salaries and wages Exploration expense Impairment Administrative expense Listing Fees Legal fees Share based payments Other Loss from continuing operations before income tax expense Income tax expense Loss from continuing operations Loss for the year Other comprehensive income Comprehensive loss attributable to the shareholders of the Company Basic and diluted loss per share (dollar per share) for continuing operations attributable to the shareholders of the Company Basic and diluted loss per share (dollar per share) attributable to the shareholders of the Company 2.1 3.2 5.3.3 31-Dec-24 $ 31-Dec-23 $ 30,923 620,025 37,522 962,698 (103,420) (14,846) (83,131) (159,389) (207,953) (1,972,504) (199,477) (12,256) (29,893) (48,866) (237) (2,181,024) (2,181,024) (71,580) (17,507) (9,038) (66,300) (78,227) (102,885) (314,839) (18,420) (11,407) (331,750) (700) (22,433) (22,433) - - (2,181,024) (22,433) (1.69) (0.02) (1.69) (0.02) The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. Interim Financial Report 31 December 2024 6 OD6 Metals Limited Condensed Consolidated Statement of Financial Position As at 31 December 2024 Note Assets Current assets Cash and cash equivalents Other current assets Total current assets Non-current assets Exploration and evaluation expenditure Property, plant and equipment Total non-current assets Total assets Liabilities Current liabilities Trade & other payables Provisions Total current liabilities Total liabilities 2.1 2.2 Net assets Equity Share capital Reserves Accumulated loss Total equity attributable to shareholders of the Company 4.1 5.3.4 31-Dec-24 $ 30-Jun-24 $ 1,747,262 89,536 1,836,798 2,325,889 152,412 2,478,301 5,339,327 200,816 5,540,143 7,376,941 7,011,135 213,610 7,224,745 9,703,046 192,838 85,403 278,241 278,241 433,554 38,634 472,188 472,188 7,098,700 9,230,858 10,887,543 1,558,303 (5,347,146) 7,098,700 10,887,543 1,509,437 (3,166,122) 9,230,858 The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. Interim Financial Report 31 December 2024 7 OD6 Metals Limited Condensed Consolidated Statement of Changes in Equity For the Period Ended 31 December 2024 At 1 July 2024 Issued Capital Share Based Payment Reserves Accumulated Losses Total equity $ $ $ $ 10,887,543 1,509,437 (3,166,122) 9,230,858 - - (2,181,024) (2,181,024) - - (2,181,024) (2,181,024) 10,887,543 48,866 1,558,303 (5,347,146) 48,866 7,098,700 Loss for the reporting period Total comprehensive loss for the reporting period Transactions with owners in their capacity as owners: Share-based payments At 31 December 2024 Share Based Payment Reserves $ Issued Capital $ At 1 July 2023 Total equity $ $ 9,224,855 1,165,966 (2,725,274) 7,665,547 - - (22,433) (22,433) - - (22,433) (22,433) 9,224,855 331,750 1,497,716 (2,747,707) 331,750 7,974,864 Loss for the reporting period Total comprehensive loss for the reporting period Transactions with owners in their capacity as owners: Share-based payments At 31 December 2023 Accumulated Losses The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. Interim Financial Report 31 December 2024 8 OD6 Metals Limited Condensed Consolidated Statement of Cash Flows For the Period Ended 31 December 2024 31-Dec-24 $ Cash flows from operating activities Interest received 31-Dec-23 $ Payments to suppliers and employees E&E Expensed Refund Received from surrendered tenements Net cash (outflow) from operating activities 41,662 (642,561) (129,086) 30,734 (699,251) 43,438 (799,693) (756,255) Cash flows from investing activities Payments for acquisition of property plant and equipment Payments for exploration and evaluation expenditure Grant/R&D Received Net cash (outflow) from investing activities (2,052) (427,136) 620,025 190,837 (12,690) (1,621,561) 962,697 (671,554) Cash flows from financing activities Proceeds from issue of shares Share Issue Costs Repayment of loans Net cash inflow from financing activities (70,213) (70,213) - 2,325,889 (578,627) 1,747,262 3,515,459 (1,427,809) 2,087,650 Cash and cash equivalents at the beginning of the period Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at the end of the period The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes Interim Financial Report 31 December 2024 9 OD6 Metals Limited Notes to the Financial Statements 1. Summary of material accounting policies The interim report of OD6 Metals Limited for the period ended 31 December 2024 was authorised for issue in accordance with a resolution of the directors on 06 March 2025. 1.1. Basis of Preparation These interim consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. This condensed interim financial report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. The interim report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. 1.2. Basis of Measurement The financial report has been prepared on a historical cost basis. 1.3. Functional and Presentation Currency The financial report is presented in Australian dollars. 1.4. Compliance with IFRS The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS). The following is a summary of the material accounting policies adopted by the entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. Interim Financial Report 31 December 2024 10 OD6 Metals Limited Notes to the Financial Statements 1.5. Going Concern This report is prepared on the going concern basis which assumes the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. For the half year ended 31 December 2024, the Group incurred a loss from operations of $2,181,024 (31 December 2023: $22,433) and recorded cash outflows from operating activities of $640,378 (31 December 2023: $756,255). As at 31 December 2024, the Group had net working capital of $1,558,557 with cash of $1,747,262 (30 June 2024: $2,325,889) available. The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations and commitments. The Board believes that it has sufficient funding in place to meet its operating objectives. The Directors consider the basis of going concern to be appropriate for the following reasons: o the cash balance of the Company relative to its fixed and discretionary expenditure commitments; o given the Company’s market capitalisation and the underlying prospects for the Company to raise further funds from the capital markets; and o the fact that future exploration and evaluation expenditure is generally discretionary in nature (i.e. at the discretion of the Directors having regard to an assessment of the Company’s eligible expenditure to date and the timing and quantum of its remaining earn-in expenditure requirements). Subject to meeting certain minimum expenditure commitments, further exploration activities may be slowed or suspended as part of the management of the Company’s working capital. Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company's history of raising capital to date, the directors are satisfied of the Company's ability to raise additional funds as and when they are required. Should the Company be unable to raise sufficient funds, there is material uncertainty whether it would continue as a going concern and therefore whether it would realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts or classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due. Interim Financial Report 31 December 2024 11 OD6 Metals Limited Notes to the Financial Statements 2. Capital Expenditure 2.1. Exploration & Evaluation Expenditure Exploration and evaluation 31-Dec-24 $ 5,339,327 30-Jun-24 $ 7,011,135 Movement: Opening balance Costs capitalised during the year, net of refunds Costs impaired during the year 7,011,135 300,696 (1,972,504) 4,656,027 2,355,108 - Closing balance 5,339,327 7,011,135 Projects: Grass Patch(1) Splinter Rock Closing balance 5,339,327 5,339,327 1,477,889 3,178,138 7,011,135 (1) During the reporting period, the Grass patch project was fully impaired and written off for all tenements in the project. 2.2. Property Plant and equipment Office Equipment Accumulated depreciation – Office Equipment Computer Equipment - Cost Accumulated depreciation – Computer Equipment Motor Vehicle Accumulated depreciation – Motor Vehicle Plant & Equipment Accumulated depreciation – Plant & Equipment Net carrying amount 31-Dec-24 $ 4,881 (2,192) 10,350 (6,813) 176,870 (45,536) 81,930 (18,674) 200,816 30-Jun-24 $ 4,881 (1,783) 9,960 (7,437) 176,870 (36,951) 81,930 (13,860) 213,610 31-Dec-24 $ 31-Dec-23 $ 3. Financial Performance 3.1. Other Income Revenue from continuing operations Interest Earned Interest accrued for Term Deposits 30,923 30,923 15,256 22,266 37,522 3.2. Expenses 31-Dec-24 $ Administration services Consulting Conferences Insurance Investor relations Share Registry Other Interim Financial Report 31 December 2024 (98,983) (686) (15,162) (52,050) (10,407) (22,189) (199,477) 12 31-Dec-23 $ (132,880) (3,564) (27,774) (116,120) (9,342) (25,159) (314,839) OD6 Metals Limited Notes to the Financial Statements 4. Funding and risk management 4.1. Share capital Date Balance at 01 July 2023 Issue of shares – 5 April Share Purchase Plan Less: transaction costs Conversion of performance rights 5 April 2024 30 April 2024 19 June 2024 Number of shares Issue price $ Value $ 102,450,745 21,226,761 4,112,667 1,000,000 0.071 0.071 n/a 9,224,855 1,500,000 292,000 (329,312) 200,000 Balance at 30 June 2024 128,690,173 10,887,543 Balance at 31 December 2024 128,690,173 10,887,543 5. Related Parties 5.1. Related Parties Details relating to key management personnel, including remuneration paid are in included in the 2024 annual report. The aggregated compensation made to directors of the consolidated entity is set out below: 31-Dec-24 $ Short term benefits Post-employment benefits Share based payments Total compensation 222,090 14,612 48,866 285,568 31-Dec-23 $ 226,300 13,482 247,307 487,089 5.2. Other transactions with related parties The Company entered into a geological services agreement with GeoSpy Pty Ltd, an entity controlled by Dr Holden, pursuant to which GeoSpy Pty Ltd invoiced OD6 Metals Limited $41,500 for the period ending 31 Dec 2024. 5.3. Share Based Payments 5.3.1. Options KMP incentive options Date of issue Number of options Dividend yield (%) Expected volatility (%) Risk free interest rate (%) Expected life of the option (years) Option exercise price ($) Share price at grant date ($) Fair value per option ($) Total value at grant date ($) 06-Dec-24 4,500,000 0% 90% 3.96% 3 $0.10 $0.032 $0.0109 $48,866 02/12/2027 Expiry Date Interim Financial Report 31 December 2024 13 OD6 Metals Limited Notes to the Financial Statements 5.3.2. Performance Rights Performance Rights which convert into Shares on a 1:1 basis subject to the satisfaction of the Milestone as set out below. The Performance Rights have the following Milestones and Expiry Dates: Performance Rights Number of Rights Probability Value $ Performance Rights Class B issued to MD 01 April 2022(1) Performance Rights Class C issued to MD 08 December 2023(2) Performance Rights Class D issued to Employees 08 December 2023(3) Closing Balance 31 December 2024 (2) 1,500,000 50% 150,000 1,000,000 50% 82,500 300,000 50% 24,750 2,800,000 257,250 1,500,000 Class B Performance Rights converting to Shares (1:1 basis) upon the Company announcing to ASX the results of a scoping study showing the potential to generate an internal rate of return (IRR) of more than 20% using consensus prices and Board approved assumptions, expiring at 5pm (AWST) on the date that is 3 years from the date of the Company’s admission to ASX. (3) 1,000,000 Class C Performance Rights converting to Shares (1:1 basis) upon the Company announcing to ASX a JORC compliant inferred (or greater) Mineral Resource (as defined in the JORC Code) of not less than 1,000,000,000 tonnes (of which at least 400,000,000 tonnes must be an indicated Mineral Resource), grading a minimum of 800 ppm total rare earth oxides (TREO), expiring at 5pm (AWST) on the date that is 3 years from the issue date. (4) 300,000 Class D Performance Rights converting to Shares (1:1 basis) upon the Company announcing to ASX the results of a Scoping Study (as defined in the JORC Code) showing the potential to generate an internal rate of return (IRR) of more than 20% using consensus prices and Board approved assumptions, expiring at 5pm (AWST) on the date that is 3 years from the issue date. 5.3.3. Recognised share-based payments expense in profit or loss Expense arising from employee options issued Total share-based payments expensed in profit or loss 31-Dec-24 $ 48,866 48,866 31-Dec-23 $ 331,750 331,750 31-Dec-24 $ 1,252,187 Number of Options 38,750,371 48,866 1,301,053 4,500,000 43,250,371 5.3.4. Reserves At 1 July 2024 Share based payment directors and employees Forfeited during the period Total options held in reserve 31-Dec-24 $ At 1 July 2024 Share based payment for the managing director Share based payment for the employees Forfeited during the period Total performance shares held in reserve Total Reserves Interim Financial Report 31 December 2024 257,250 257,250 1,558,303 14 Number of Performance rights 2,800,000 2,800,000 OD6 Metals Limited Notes to the Financial Statements 6. Segment information Management has determined the operating segments based on the reports reviewed by the Board of the Directors that are used to make strategic decisions. The Company does not have any material operating segments with discrete financial information. The Company does not have any customers and all its assets and liabilities are primarily related to mining industry and are located within Western Australia. The Board of Directors review internal management reports on a regular basis that is consistent with the information provided in the statement of profit and loss and other comprehensive income, statement of financial position and statement of cashflows. As a result, no reconciliation is required because the information as presented is what is used by the Board to make strategic decisions. 7. Other 7.1. Events occurring after the reporting period  On the 14/01/2025 6,000,000 Ordinary fully paid shares at 5.8c per share were issued as part of the acquisition for the Gulf Creek Project and a payment of $150,000 cash. $48,000 was reimbursed for the environmental bond that was transferred into the name of Gulf Creek Copper Pty Ltd.   On the 31/01/2025 the Non-Executive Chair of the company Mr Wayne Bramwell has resigned. On the 19/02/2025 24,555,555 ordinary fully paid shares were issued as part of a placement. 7.2. Commitments and Contingencies 31-Dec-24 $ Not longer than 12 months Between 12 months and 5 years Longer than 5 years Total Commitments and Contingencies Interim Financial Report 31 December 2024 752,168 820,476 1,572,644 15 31-Dec-23 $ - OD6 Metals Limited Director’s Declaration In accordance with a resolution of the directors of OD6 Metals Limited, I state that: (1) In the opinion of the directors: (a) the financial statements, notes and the additional disclosures included in the directors’ report designated as audited, of the Group are in accordance with the Corporations Act 2001 including: (i) giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance for the period ended on that date; and (ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (b) (2) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 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 half-year ended 31 December 2024. On behalf of the Board, Darren Holden Chairman 07 March 2025 Interim Financial Report 31 December 2024 16 OD6 Metals Limited Interim Financial Report 31 December 2024 17 OD6 Metals Limited Interim Financial Report 31 December 2024 18 OD6 Metals Limited Interim Financial Report 31 December 2024 19 OD6 Metals Limited