2. Financial risk management

The Group’s activities expose it to market risk (foreign exchange and interest-rate risk), liquidity risk and credit risk. Risk management is carried out by management under the oversight of the Board. The Group’s principal financial instruments are cash and cash equivalents, the restricted term deposit, receivables other than statutory amounts, trade payables and accruals, and lease liabilities. The Group has no commodity-price exposure arising from financial instruments. Cash, the restricted term deposit, other financial receivables and trade payables are measured at amortised cost. Lease liabilities are measured in accordance with IFRS 16 (note 14). The carrying amounts of short-term financial assets and trade payables approximate their fair values.

(a) Financial instruments by category and currency

Statutory receivables and payables (goods and services tax, value added tax and employment taxes) are not financial instruments and are excluded from the table below (note 1(k)).

(b) Foreign-exchange sensitivity

The functional currency of the Malawian operations is the US dollar (note 1(d)). A reasonably possible 10% depreciation of the Malawian kwacha against the US dollar at the reporting date would decrease the loss by the amount shown below through the remeasurement of kwacha-denominated monetary items (a 10% appreciation would have the equal and opposite effect); where intragroup funding forms part of the Group’s net investment in those operations, the related exchange differences are recognised in the foreign currency translation reserve on consolidation. A reasonably possible 10% strengthening of the Australian dollar against the US dollar would decrease equity by the amount shown through the translation of the net investment in those operations (a 10% weakening would have the equal and opposite effect):

For comparability with the prior year’s disclosure, the table also shows the effect of a reasonably possible 10% strengthening of the Australian dollar against all of the foreign currencies in which the Group’s monetary items in (a) are held, taken together: on the net foreign-currency liability of $1,363,662 at June 30, 2026 (2025: $1,730,461) the loss would decrease by approximately $136,366 (2025: $173,046), with a 10% weakening having the equal and opposite effect.

(c) Interest-rate sensitivity

The Group holds cash of $1,072,093 subject to variable interest rates. The Group policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest rate return. The proportional mix of floating interest rates and fixed rates to a maximum of six months fluctuate during the years depending on current working capital requirements. A movement of ±100 basis points would change the annual result by approximately $10,721 (2025: $6,870). The $30,000 term deposit bears a fixed rate for its term and is therefore excluded from this sensitivity. The lease liability is at a fixed implicit rate and the Group had no borrowings at either reporting date; accordingly there is no other material interest-rate sensitivity.

(d) Liquidity risk — contractual maturities of financial liabilities

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash is available to meet the current and future commitments of the Group. Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction with the Group’s current and future funding requirements, with a view to initiating appropriate capital raisings as required.

The financial liabilities of the Group comprise trade and other payables and the lease liability disclosed in the consolidated statement of financial position. Trade and other payables are non-interest bearing and due within 12 months of the reporting date; the lease liability is described in note 14.

The following are the contractual undiscounted cash flows of financial liabilities. Amounts may differ from the carrying amounts and their classification in the statement of financial position.

The lease liability of $65,652 is presented in full within amounts due in less than one year because the lessor may demand the outstanding rentals at any time and the Group has no right at the reporting date to defer settlement for at least twelve months (note 14). Trade and other payables in the tables above exclude statutory amounts, which are not financial instruments; the amounts due within one year include drilling-services accruals of $1,008,796 recognised in the Malawian subsidiary (note 21).

(e) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from cash and cash equivalents and receivables.

The Group’s maximum exposure to credit risk is the carrying amount of cash and cash equivalents ($1,072,093), the restricted term deposit ($30,000) and other receivables ($8,905) — $1,110,998 in total (2025: $716,127). Cash is held with reputable Australian and Malawian banks; the Australian institutions are rated A or better. Concentration risk is managed through use of placement of funds across multiple institutions, with the material balances with the most reputable and creditworthy. Other receivables comprise an amount recoverable from the Mota-Engil group, a related party. Management has assessed that no loss allowance is required. Statutory receivables (goods and services tax and value added tax refunds) are recoverable from taxation authorities and are not financial instruments.

As the Group does not presently have any significant trade receivables, lending, significant stock levels or any other credit risk, a formal credit risk management policy is not maintained. Credit risk is managed by senior management and the board. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken.

(f) Capital management

The Group defines capital as its total equity of $25,983,040 (2025: $17,711,627) together with cash and cash equivalents; it has no borrowings and is not subject to any externally imposed capital requirements. The Board’s objectives in managing capital are to safeguard the Group’s ability to continue as a going concern, to maintain the tenure of its exploration licences and to fund its exploration programmes so as to build value for shareholders. Because the Group is an exploration entity without operating revenue, capital is managed by matching planned exploration and corporate expenditure to available cash and to funding the Board considers can be raised — principally by the issue of equity and having no debt facilities. Management monitors capital by reference to forecast cash flow, the level of committed and discretionary expenditure and the Group’s working-capital position, and adjusts the pace of discretionary exploration expenditure where required. The related-party financial support, the status of the US initial public offering and the Group’s further funding requirements are described in note 1(c). There were no changes in the Group’s approach to capital management during the year.