Announcement PDF ABX Group Limited ABN 14 139 494 885 Annual Report - 31 December 2024 ABX Group Limited Contents 31 December 2024 Corporate directory Chair's letter Review of Operations Directors' report Auditor's independence declaration Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's report to the members of ABX Group Limited Shareholder information Consolidated entity disclosure statement 1 2 3 4 12 24 25 26 27 28 29 54 55 58 61 ABX Group Limited Corporate directory 31 December 2024 Directors Joycelyn Morton (Non-Executive Chair) Dr Mark Cooksey (Managing Director & CEO) Ian Levy (Executive Director) Company secretary Mathew Watkins Registered office Level 4, 100 Albert Road South Melbourne, VIC 3205 Principal place of business Level 4, 100 Albert Road South Melbourne, VIC 3205 Telephone: +61 3 9692 7222 Fax: +61 2 9956 7355 Website: www.abxgroup.com.au Share register Computershare Investor Services Pty Limited Level 3, 60 Carrington Street Sydney NSW 2000 Telephone: 1300 850 505 Auditor K.S. Black & Co. Level 5, 350 Kent Street Sydney NSW 2000 Telephone: +61 2 8839 3000 Bankers Australia & New Zealand Banking Group Limited 20 Martin Place Sydney NSW 2000 Telephone: +62 2 9227 1818 St George Bank Limited Level 14, 182 George St Sydney NSW 2200 Telephone: +61 2 9236 2230 Stock exchange listing ABX Group Limited shares and options are listed on the Australian Securities Exchange (ASX code: ABX & ABXO). 2 ABX Group Limited Chair's letter 31 December 2024 CHAIR’S LETTER Dear fellow shareholders, I am pleased to present the ABx Group Annual Report for 2024, which not only reflects a year of significant growth but also marks the completion of my first year as a board member and now chair overseeing the direction of this exciting company. Throughout the year, the Company has met some major goals, and we are well-positioned to continue delivering value to shareholders. At the Deep Leads rare earth project, ABx has conducted extensive exploration. Our JORC Resource has expanded to now stand at 89 million tonnes, averaging 844 ppm total rare earth oxides, which features some of the highest dysprosium and terbium grades of any clay-hosted rare earths resource in Australia. Moreover, the project is backed by largescale tenure – the majority of which remains underexplored – meaning there is plenty of opportunity for further development. Equally impressive are the activities of our 83%-owned subsidiary Alcore. The business has demonstrated its capability to convert aluminium smelter bath waste into high-value industrial chemicals. Alcore has successfully outgrown its facilities in NSW and, with support from the Tasmanian Government and a lease from Rio Tinto Aluminium Limited, we are now developing a pilot plant in Bell Bay, Tasmania. This plant is designed to advance our batch testing reactor to one that can continuously process up to 20 kg/h of bath waste, a significant step toward demonstrating the commercial potential of our world-leading, waste-reducing technology. Global bauxite prices have significantly increased due to severe supply disruptions. This global shortfall in bauxite supply, presents an attractive opportunity for ABx, given the favourable quality and logistical settings of our bauxite deposits in Queensland and Tasmania. This positions the company uniquely in a globally evolving market. We are actively pursuing several options to monetise these assets, including updating mine studies to prioritise an earlier commencement of production. Our Sunrise Bauxite Project in Queensland and DL130 Bauxite Project in Tasmania are impressive. Moreover, they align with ABx’s broader strategy of capitalising on global trends, such as rising demand for critical minerals and a shift toward increasing self-sufficiency in Australia. These bauxite projects are part of this strategy, positioning ABx to take advantage of the global demand for critical minerals. Our high value rare earth elements are in huge demand globally. Our rare earth project has already shown remarkable potential, with ABx’s rare earths not only being high in permanent magnet elements but also its metallurgical properties should make it lower cost and environmentally friendly to extract. ALCORE’s impressive and world leading project for converting smelter bath waste into hydrogen fluoride and aluminium fluoride, an essential chemical for aluminium smelting that is currently 100% imported, will commence this year at its pilot plant in Bell Bay, Tasmania. This is an exemplary demonstration of the circular economy. Our work across these varied projects demonstrates the unique potential for ABx Group, particularly as we address critical materials shortages while simultaneously operating in an ESG-positive manner. Whether through the innovative extraction methods in rare earths or the recycling capabilities of ALCORE, ABx is well-placed to take advantage of these globally significant opportunities. Now is a pivotal time in the future of the Company. With this momentum, we have a clear path to success in 2025 and beyond. I sincerely thank our shareholders for their loyalty and support. I also want to acknowledge the entire ABx team for their conscientious and tireless hard work, as we together continue this exciting journey. Yours faithfully, Joycelyn Morton Non-Executive Chair 3 ABX Group Limited Review of Operations 31 December 2024 REVIEW OF OPERATIONS ABx Group (ABx) is a uniquely positioned Australian company delivering materials for a cleaner future. The current areas of focus are:  Creation of an ionic adsorption clay rare earth project in northern Tasmania  Establishment of a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial waste, to replace imports (ALCORE)  Mining and enhancing bauxite resources for alumina, cement and fertiliser production ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed. Advancing Rare Earth Project in Tasmania ABx is the first company to discover rare earths in Tasmania and has the highest reported extractions under relatively neutral conditions from any clay-hosted rare earths project in Australia, which means that the ABx resource has the highest ionic proportion of any clay-hosted rare earths resource in Australia. During the period, ABx reported an increase in the mineral resource estimate to 89 million tonnes, averaging 844ppm TREO and 652ppm TREO - CeO2. The resource has the highest proportion of dysprosium and terbium (Dy+Tb is 4.3% of TREO) of any clay-hosted rare earths resource in Australia and one of the highest in the world. ABx executed an MoU with Ucore Rare Metals outlining a collaborative pathway for ABx and Ucore to advance towards a binding offtake agreement for the supply of a mixed rare earth carbonate (“MREC”) by ABx to Ucore and an opportunity for Ucore to invest in the ABx rare earths project in Tasmania. ABx was awarded an Exploration Drilling Grant Initiative (EDGI) grant from Mineral Resources Tasmania, which provides for up to $70,000 for half of the drilling costs for a drilling program at the EL27/2022 exploration tenement. An improved geological model of the Deep Leads / Rubble Round resource was developed, which will assist to us to identify the most prospective areas within our existing tenements, and other prospective areas in northern Tasmania. ALCORE, ABX’s 83%-owned refining technology subsidiary ALCORE entered into a lease agreement with Rio Tinto Aluminium Limited for an industrial facility adjacent to its Bell Bay aluminium smelter in northern Tasmania. ALCORE will establish a pilot plant at the facility, which comprises a 500 sqm building on an industrial site and offers convenient access to local engineering services and suppliers in Bell Bay. The Tasmanian Government has provided indicative terms and conditions for a $1 million, zero interest, conditional loan to support the construction and operation of the continuous pilot plant at the facility leased from Rio Tinto. The loan is subject to confirming executing final loan documentation, anticipated in early 2025. Rigorous investigation of process conditions continued using the bath pilot batch reactor, which had been commissioned in October 2023. The latest rector results have seen ALCORE achieve 97% fluorine recovery, improving upon the previous best of 93%, a result which was already deemed very likely to be sufficient in a commercial plant. Progressing Bauxite Operations ABx is progressing its Australian bauxite projects amid rising global bauxite prices, driven by supply disruptions in Guinea and reduced production in China. Guinea bauxite prices have surged nearly 60%, highlighting the demand for bauxite. ABx's Binjour project in Queensland holds 37 million tonnes of gibbsite bauxite, with some suitable for direct shipping ore. Mining and logistics studies are complete, and production could begin in 2025. The Taralga project in New South Wales, with 38 million tonnes of bauxite, is being reassessed following improvements to Port Kembla logistics. With global bauxite supply tight, ABx is exploring various monetisation options, including updating mine studies to prioritise an earlier commencement of production, offtake agreements and potential asset sales. The company is in discussions with several parties, and a data room has been set up to facilitate negotiations. 4 ABX Group Limited Review of Operations 31 December 2024 In Tasmania, ABx plans to develop the DL130 Bauxite Project, with regulatory assessments underway. The company has a supply agreement with Adelaide Brighton Cement Limited for 90,000-120,000 tonnes of cement-grade bauxite over five years, with ongoing discussions to ensure its success. Assessment of the mine lease application by Meander Valley Council, the EPA and Mineral Resources Tasmania is in progress. Rare Earth Elements Exploration Rare earths are a strategic focus for ABX Group, with the Company capitalising on its major discoveries in Tasmania as well as a series of commodity tailwinds. During the period, the mineral resource estimate for the rare earth deposits 45 km west of Launceston was increased by 70% to 89 million tonnes averaging 844 ppm TREO and 652 ppm TREO- CeO2. The resource contains 36 ppm DyTb, the highest of any clay-hosted rare earths resource in Australia and one of the highest in the world. The resource model was based on 29% of the mineralised outline, and included the Wind Break deposit for the first time. (see Table 1) Table 1: Mineral resources at Deep Leads – Rubble Mound – Wind Break (US$30/t ~350 ppm cut-off grade) Resources at Deep Leads-Rubble Mound & Wind Break @ US$30/t cog Measured 41.4 41.6 5.6 Avg depth (m) 4.2 4.2 4.1 Avg base (m) 12.3 11.8 11.4 Avg thickness (m) 8.0 7.7 7.3 Totals 89 4.2 12.0 7.8 Resource Million Category Tonnes Inferred Indicated TREO ppm TREOCeO2 ppm ppm 811 856 998 629 656 790 844 652 Perm Mag Permanent Magnet REOs Key Ratios Nd2O3 ppm Pr6O11 ppm Tb4O7 ppm Dy 2O3 PermMag Tb+Dy ppm TREO % TREO % 212 225 263 141 150 174 36 38 43 5.0 5.2 6.6 30 31 39 26% 26% 26% 4.3% 4.2% 4.6% 221 147 37 5.2 31 26% 4.3% Other Rare Earth oxides Low radioactivity Resource Category CeO2 ppm Er2O3 ppm Eu2O3 ppm Gd2O3 ppm Ho2O3 ppm La2O3 ppm Lu2O3 ppm Sm2O3 ppm Tm2O3 ppm Yb2O3 ppm Y 2 O3 ppm ThO ppm Inferred 182 17 8.3 31 6.0 124 2.2 31 2.4 15 180 Indicated 200 18 9.0 33 6.2 131 2.3 34 2.5 15 181 6.6 6.4 U3O8 ppm 1.8 1.8 Measured 209 22 11.3 41 7.8 150 2.8 40 3.0 19 229 6.2 1.7 Totals 192 18 8.8 33 6.2 129 2.3 33 2.5 15 183 6.5 1.8 3 Parameters: Note 1 ppm = 1 gram/t: Block cut-off grade (cog) = US$30/t (~350ppm TREO-CeO2) Min thickness = 2 metres Density = 1.9 t/metre Search ellipse = 120 x 150m (Meas & Ind), 250 x 250m (Inf). TREO = total rare earth elements as oxides. TREO-CeO2 = TREO minus cerium oxide. ABx executed a Memorandum of Understanding (MOU) with Ucore, a Canadian public company with a patent-pending rare earth separation technology, RapidSX™. The MOU describes how:    ABx and Ucore will work toward a binding offtake agreement for the supply of an intermediate rare earth product, which is envisaged to be a mixed rare earth carbonate (MREC), by ABx to Ucore. The intent is for Ucore to obtain ‘first right of refusal’ for 50% of ABx annual volume for a minimum period of five years, subject to the agreement of commercial terms; The parties will explore potential investment by Ucore into the ABx rare earth project as well as project finance opportunities for the ABx and Ucore projects, which may involve joint approaches to companies active in the rare earth value chain, governments, institutional funds, and private investors; ABx and Ucore will collaborate to develop and optimise: o a comprehensive product flowsheet considering where best to implement collective project efficiencies; and o a total project development strategy, including laboratory, pilot, and demonstration plant testing. 5 ABX Group Limited Review of Operations 31 December 2024 An Exploration Drilling Grant Initiative (EDGI) grant was received from Mineral Resources Tasmania. The grant provides for up to $70,000 for half of the drilling costs for a drilling program at the EL27/2022 exploration tenement, located near Launceston and 52km east of ABx’s major Deep Leads / Rubble Mound REE project. Meanwhile, applications for two exploration leases are in progress, including EL25/2022 covering the 16 km extension from Deep Leads / Rubble Mound to the Wind Break REE discovery area. A 37-hole drilling program was conducted from late May to late June 2024, to explore an area directly northwest of the highgrade Deep Leads discovery, located approximately 45 km west of Launceston. All assay results were received and several intercepts were considerably thicker than usual and extend ABx’s REE mineralisation across the plateau. EL Applicafion area Wind Break This is being reduced to easily accessible areas only NW Block Deep Leads Leech Scrub Rubble Mound Licences ABx Tenements Resource Boundary Outline Alluvial Flats 2.5 kms Block Model < 1,820 TREO (ppm x m) 1,820 - 3,610 3,610 - 5,750 5,750 - 8,200 > 8,200 TREO (ppm x m) Figure 1: Location of ABx’s 89 million tonne rare earths resources of Deep Leads, Rubble Mound, Alluvial Flats, Leach Scrub and Wind Break In addition, equipment and procedures for in-house desorption tests were developed, allowing ABx to conduct a large number of desorption tests rapidly and cost-effectively. This is designed to be complementary to tests conducted by Australian Nuclear Science and Technology Organisation (ANSTO). ABx will continue to engage ANSTO to conduct desorption tests and other process development activities. Systematic desorption testing was conducted using the in-house facilities, investigating parameters such as pH, ammonium sulfate concentration, solids loading and temperature. These are providing useful insights on the nature of the Deep Leads / Rubble Mound Resource. 6 ABX Group Limited Review of Operations 31 December 2024 During the year, ABx Group also developed an improved geological model of the Deep Leads / Rubble Mound resource, which will assist the company to identify the most prospective areas within its existing tenements, and other prospective areas in northern Tasmania. Figure 2: Location of ABX Exploration Projects in northern Tasmania Alcore: Aluminium fluoride for aluminium smelters ABX Group has significantly advanced the development of 83%-owned Alcore, which is developing a process to refine aluminium smelter waste into high-value chemicals. Alcore has developed a world-first process to recover hydrogen fluoride from an aluminium smelter waste product, known as excess bath, which can be combined with aluminium hydroxide to produce aluminium fluoride. The Alcore process has the potential to resolve two key challenges for Australia’s aluminium smelting industry. The first challenge relates to the supply of aluminium fluoride. This chemical is strategically important as it is essential for maintaining smelter operations. Australia is entirely reliant on imports to meet its aluminium fluoride requirements. The country is the largest producer of primary aluminium metal without its own domestic aluminium fluoride production. Currently, Australia typically imports more than 80% of its aluminium fluoride from China, but this proportion was only 40% in 2021 when Chinese production was lower, illustrating the supply risks. The second key challenge faced by Australia’s aluminium smelter industry relates to the production of the excess bath. Most modern aluminium smelters produce excess bath, for which the only meaningful market is new smelters, which require bath to commence operations. Aluminium industry forecasts suggest the global bath market will increasingly be in surplus, because far fewer new smelters are being constructed. All the major global aluminium producers are eager for alternative applications for excess bath to avoid the unpalatable options of on-site storage or landfill. 7 ABX Group Limited Review of Operations 31 December 2024 Alcore has a major opportunity to apply its advanced technology to resolve these major industry challenges and deliver significant value to shareholders. During the year, Alcore made significant progress on key initiatives marked by strategic partnerships and technical breakthroughs. One of the major developments was Alcore’s entry into a lease agreement with Rio Tinto Aluminium Limited for an industrial facility adjacent to the Bell Bay aluminium smelter in Tasmania. This agreement provides Alcore with a 500 sqm industrial site for the construction of its continuous pilot plant. The lease is offered at a reduced rate, reflecting Rio Tinto’s contribution to the project. The location offers convenient access to essential local services and suppliers, positioning Alcore to efficiently scale its operations. Additionally, the lease includes an option for Alcore to purchase or extend the lease for up to 10 years, depending on the successful performance of the pilot plant and the eventual decision to construct a commercial plant. The Tasmanian Government also demonstrated strong support for Alcore’s expansion. The government provided indicative terms and conditions for a $1 million, zero-interest conditional loan, designed to assist in the construction and operation of the continuous pilot plant at the Bell Bay facility. The loan is contingent on finalising documentation, expected in early 2025, further reinforcing the strategic importance of the Bell Bay site for Alcore’s future operations. On the technical front, Alcore achieved a significant milestone with its bath pilot batch reactor. In the latest test runs, the company achieved an impressive 97% fluorine recovery. This result represents a substantial improvement over previous tests. The 97% recovery was achieved through a combination of optimised reactor performance and additional manual processing of product material, demonstrating the potential for high efficiency in future commercial plants. These key achievements in 2024 position Alcore for continued success as it moves forward with the development of its fluorine recovery technology and prepares for the next stages of its commercial growth. Figure 3: Bath pilot batch reactor. 8 ABX Group Limited Review of Operations 31 December 2024 Bauxite Operations The ABX strategy is to selectively produce metallurgical grade, cement grade and fertiliser grade bauxite, with a focus on profitability. In 2024, ABx Group made substantial progress across its bauxite projects, advancing key stages of development and responding to favourable market conditions. The company has strategically positioned itself to capitalise on significant global demand growth for bauxite, driven by supply disruptions and reduced production in key global markets. Global bauxite prices have increased significantly due to severe supply disruptions in Guinea and reduced production in China. This disruption has created a shortfall in global bauxite supply, placing ABx in a strong position given the favourable quality and logistics of its bauxite deposits. In response to this market shift, ABx is actively pursuing several options for the monetisation of its bauxite assets, including updating mine studies to prioritise an earlier commencement of production. Sunrise Project, Queensland The Sunrise Bauxite Project saw considerable progress in 2024, achieving notable milestones including the completion of a remodelling of the Binjour mine plan to improve operational efficiency and functionality. This revised mine plan enhances productivity and better aligns the project with current market demands. ABx continued negotiations with multiple potential offtake partners, reflecting strong interest in securing long-term bauxite supply from the Sunrise Project. In terms of infrastructure, the Queensland Government approved a $7.5 million upgrade to the Biggenden Railway Crossing, which will significantly improve regional freight efficiency. This upgrade will enable the use of larger trucks to transport bauxite, lowering transport costs and improving logistics.. ABx also submitted an application for a standard environmental authority (EA) for Mine Lease 100277 to the Department of Environment, Science, and Innovation, which is currently under review. Additionally, the Port of Bundaberg’s new multi-use conveyor system, designed for bulk mineral handling, will help support the logistics of exporting bauxite, further enhancing the project’s capabilities. DL130 Project, Tasmania The DL130 Bauxite Project also made steady progress in 2024. The planning and approval process continued, with the report supporting the planning permit application advertised for public consultation by the Meander Valley Council. In response to public submissions, the EPA issued a Request for Additional Information regarding the Dust Management Plan and Stormwater Management Plan. ABx completed the additional work required and in March the EPA approved an Environmental Permit, noting several conditions and restrictions that the Meander Valley Council development permit would need to include. Meander Valley Council is currently assessing the application. ABx secured formal agreements with all landholders for the project, ensuring the necessary land access for development. The company also held two community drop-in sessions in Westbury and Deloraine, engaging local stakeholders and providing updates on the project. This community engagement is part of ABx's ongoing commitment to maintaining strong relationships with local communities throughout the development process. Taralga Bauxite Project: New South Wales The Taralga Bauxite Project, located between Taralga and Crookwell in New South Wales, is currently being reassessed in light of recent changes in global bauxite market conditions. A pre-feasibility study completed in 2013-14 outlined the potential to ship 1 million tonnes per annum of trihydrate, gibbsite-type metallurgical bauxite. Transport logistics by road and rail were found to be feasible, but previous delays in the expansion of Port Kembla’s outer harbour had posed significant obstacles. However, recent positive changes to Port Kembla’s logistics have led ABx to reconsider advancing this project. With recent price increases for trihydrate bauxite, ABx is reassessing the feasibility of the project to meet the growing global demand for this type of bauxite. 9 ABX Group Limited Review of Operations 31 December 2024 Corporate Leadership Changes and Board Appointments ABx Group welcomed Ms. Joycelyn Morton as a non-executive director. Ms. Morton’s appointment marked a significant enhancement to the company’s leadership, bringing a wealth of experience from a range of sectors, including energy, infrastructure, and finance. Her appointment followed the retirement of long-serving non-executive director Mr. Ken Boundy, who stepped down to focus on other director duties, as well as the resignation of Mr. Derek Firth from the Alcore director position in late 2023. In recognition of Ms. Morton’s leadership capabilities, she was appointed as the new Non-Executive Chair of ABx Group and Alcore following the retirement of Paul Lennon AO. Mr. Lennon had served as the Non-Executive Chair of ABx and Alcore for many years and made significant contributions to the company’s growth. Ms. Morton’s leadership and deep understanding of ABx’s strengths and opportunities have positioned her to guide the company in its next phase of development. Alongside the appointment of Ms. Morton as Chair, ABx also announced the resignation of Rex Adams as a non-executive director of Alcore. Mr. Adams had been an inaugural director of Alcore and had played a pivotal role in guiding the development of Alcore’s technology over the past six years. Open Day Event In June 2024, ABx held an Open Day at the Alcore Technology Centre. This event provided a unique opportunity for investors and stakeholders to engage directly with the ABx leadership team and staff. Attendees had the opportunity to tour the Alcore facilities, including the bath pilot batch reactor, and learn about the progress and future plans for ABx’s activities. The event was well-received, demonstrating ABx’s commitment to transparency and communication with its stakeholders. Environmental, Social, and Governance (ESG) Initiatives In May 2024, ABx published its baseline Environmental, Social, and Governance (ESG) report. This report reflects the company’s ongoing commitment to responsible and sustainable business practices. As part of its ESG strategy, ABx introduced an ESG progress dashboard, which will be updated in each quarterly report. This dashboard tracks the company’s progress against 21 core metrics developed by the World Economic Forum, providing stakeholders with a clear view of ABx’s ESG performance and objectives. Capital Raising and Financial Position During the period, ABx Group successfully raised $615,960 through a Share Purchase Plan while binding commitments were received for a placement of $1.8 million through the issuance of convertible notes. These initiatives strengthened the company’s financial position, providing additional resources to support its ongoing projects and operational growth. Risks The Group’s operating and financial results and performance are subject to various risks and uncertainties, some of which are beyond the Group’s reasonable control. Set out below are matters which the Group has assessed as having the potential to have a material impact on its operating and/or financial results and performance: 1) Fluctuations in external economic drivers including macroeconomics and metal prices: The Group’s primary focus is the advancement of its bauxite and rare earth projects. Fluctuations in the relevant commodity prices can result from various aspects beyond the Group’s control, including macroeconomic and geopolitical. Sustained lower commodity prices would adversely impact the viability of the Project. 2) Failure to discover mineral resources and convert to ore reserves: Exploration activities are speculative in nature and often require substantial expenditure on exploration surveys, drilling and sampling as a basis on which to establish the presence, extent and estimated grade (metal content) of mineralised material. Even if significant mineralisation is discovered, it may take additional time and further financial investment to determine whether a mineral resource has attributes that are adequate enough to support the technical and economic viability of mining projects and enable a 10 ABX Group Limited Review of Operations 31 December 2024 financial investment and development decision to be made. During that time the economic viability of the project may change due to fluctuations in factors that affect both revenue and costs, including metal prices, foreign exchange rates, the required return on capital, regulatory requirements, tax regimes and future cost of development and mining operations. 3) Renewal of tenements: The consolidated entity has been granted tenements in Argentina on the terms and conditions set out by the relevant government authorities. At the expiry of the lease term, the decision of renewal application to assign tenements to the consolidated entity remains with the government. A non-renewal of a tenement that makes up the Company’s flagship projects would adversely affect the operational results and fulfilment of the aspirations of the consolidated entity. 4) Technological Risk: The Company’s 83% owned subsidiary, Alcore Limited, is developing chemical engineering processes to recover hydrogen fluoride and aluminium fluoride from recycled industrial waste. This involves the control of feed material properties and process conditions to achieve suitable product quality at an acceptable rate and yield. There can be challenges in scaling-up from the existing laboratory-scale proof of concept to an industrial-scale process, because some phenomena exhibit different behaviour at larger scale. The Alcore process requires feed materials, energy and labour. The cost of these can vary and affect the commercial viability of the process. 5) Capital and Liquidity: The consolidated entity will incur expenditures over the next several years in connection with its exploration objectives and development of its chemical engineering projects and relies on its ability to raise capital as its primary source of funding. The company is exposed to the risk that unfavourable