Income Tax

12 Months Ended

Jun. 30, 2026

Income tax

6. Income tax

(a) Income tax expense

June 30,
2026
A$

June 30,
2025
A$

June 30,
2024
A$

Current tax

Deferred tax

Income tax expense

(b) Numerical reconciliation of income tax expense to prima facie tax on the loss

	June 30, 2026 A$			June 30, 2025 A$			June 30, 2024 A$
Loss before income tax		(6,881,603	)		(3,363,095	)		(1,814,609	)
Prima facie tax benefit at the Australian tax rate of 30%		(2,064,481	)		(1,008,929	)		(544,383	)
Tax effect of amounts which are not deductible in calculating taxable income:
Share-based payments		855,202			284,552			116,922
Other non-deductible items		--			96,429			112,601
Movement in unrecognised temporary differences		59,418			6,275			(23,167	)
Tax losses for which no deferred tax asset has been recognised		1,149,861			621,673			338,027
Income tax expense		--			--			--

The following deferred tax balances have not been recognised, in each case measured at the tax rates expected to apply when the asset is realised or the liability settled:

	June 30, 2026 A$		June 30, 2025 A$
Deferred tax assets (30%)
Carry-forward Australian revenue tax losses		2,311,138		1,161,277
Section 40-880 capital allowance (blackhole) expenditure		--		73,355
Deductible temporary differences		26,941		31,052
Total deferred tax assets		2,338,079		1,265,684
Deferred tax liabilities (30%)
Unrealised foreign exchange gains		--		19,208
Net unrecognised deferred tax assets		2,338,079		1,246,476
Malawian carry-forward tax losses — tax effect at 30%, not included above		2,470,000		n/q

The gross Australian revenue tax losses to which the above deferred tax assets relate were $7,703,793 at June 30, 2026 (2025: $3,870,924). Australian carry-forward tax losses do not expire, but their recoupment is subject to the loss recoupment tests.

The Group’s Malawian subsidiaries have additional carry-forward tax losses of approximately MWK 9.86 billion (A$8.2 million at the closing rate) at June 30, 2026, the tax effect of which at the Malawian corporate income tax rate of 30% is approximately A$2,470,000; that amount is shown as a memorandum line in the table above and no deferred tax asset has been recognised in respect of it. Under the Taxation Act (Malawi) an assessed loss may generally be carried forward for six years; a loss derived from mining operations may be carried forward without that limitation. Whether the Malawian losses of the Group’s exploration subsidiaries qualify for the mining concession, and the periods for which they may be carried forward, are subject to confirmation on lodgement of the Malawian returns. The amounts in this note are management’s estimates prepared from the Group’s tax computations and are subject to confirmation on lodgement of the Company’s income tax return for the year, including the amount and timing of deductions available under section 40-880 of the Income Tax Assessment Act 1997 on the costs of raising equity, which are claimed over five years.

Deferred tax assets have not been recognised because it is not probable that future taxable profits will be available against which they can be utilised. The recoupment of the available Australian tax losses is contingent on: (i) the Group deriving future assessable income of a nature and amount sufficient to enable the benefit of the deductions to be realised; (ii) the Group continuing to comply with the conditions for deductibility imposed by Australian tax legislation; and (iii) there being no changes in tax legislation that adversely affect the Group from realising the benefit.