Announcement PDF ` DALAROO METALS LTD ABN 23 648 476 699 INTERIM FINANCIAL REPORT For the Half -Year Ended 31 December 2023 DALAROO METALS LTD ABN 23 648 476 699 CONTENTS PAGE Page Corporate Directory 3 Directors’ Report 4 Auditor’s Independence Declaration 17 Condensed Statement of Profit or Loss and Other Comprehensive Income 18 Condensed Statement of Financial Position 19 Condensed Statement of Changes in Equity 20 Condensed Statement of Cash Flows 21 Notes to the Financial Statements 22 Directors’ Declaration 31 Independent Audit Report 32 2 DALAROO METALS LTD ABN 23 648 476 699 CORPORATE DIRECTORY Directors David Quinlivan – Non Executive Chairman Robert Beeck – Non Executive Director Harjinder Kehal – Managing Director Company secretary John Arbuckle Registered office Suite 1, 346 Barker Road Subiaco WA 6008 Principal place of business Suite 1, 346 Barker Road Subiaco WA 6008 Share register Advanced Share Registry Services Ltd 110 Stirling Highway Nedlands WA 6009 Auditor Crowe Perth Level 24, 77 St Georges Terrace Perth, WA 6000 Solicitors AGH Law Level 1, 50 Kings Park Road West Perth WA 6005 Stock Exchange Listing Dalaroo Metals Ltd is listed on the Australian Securities Exchange. Home exchange: Perth, Western Australia ASX code: DAL Website www.dalaroometals.com.au Company Information The Company was incorporated and registered under the Corporations Act 2001 in Western Australia. The Company is domiciled in Australia. 3 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT The Directors present their interim report of Dalaroo Metals Ltd (Dalaroo or the Company) for the halfyear ended 31 December 2023. DIRECTORS The following persons were Directors of Dalaroo during the whole of the period and up to the date of this report, (unless otherwise stated): David Quinlivan Harjinder Kehal Robert Beeck (Non-Executive Chairman) (Managing Director) (Non-Executive Director) COMPANY SECRETARY John Arbuckle PRINCIPAL ACTIVITIES The principal activity of the Company during the financial period was mineral exploration for resources at the Company’s Namban and Lyons River projects located in Western Australia which are prospective for Pb-Zn-Cu-Ag, Au, REE and PGE-Ni-Cu-Au deposits respectively. REVIEW OF OPERATIONS Dalaroo’s Lyons River Project comprises a strategic (100% owned) land position of 838km2 within the Proterozoic Mutherbukin Zone of the Gascoyne Province, Western Australia. Lyons River is prospective for, BHT type mineralised base metals (Pb-Zn-Ag-Cu), vein/shear related gold, REE and lithium deposits (Figure 1). Base metals High grade copper assay results of 54.8% coupled with silver grades of 80g/t have been returned from rock chip sampling program over the expanded 3.5km X 2km Browns base metal prospect (Figure 2). Gossanous outcrops sampled to the east of the AC drilled area at Browns have returned lead (Pb) values of up to 0.53% complemented by anomalous zinc (1140ppm) and copper (420ppm) at the Lyons River Project (Refer DAL ASX Announcements from 31 October 2023). Copper assays of 1.64% have also been recorded from rock chip sampling previously completed at the Four Corners prospect located 5km to the west of Browns (Refer DAL ASX Announcements from 16 March 2022) (Figure 9). Previous historical shallow RC drill program in 2008 at Four Corners returned an intersection of 3m @ 0.50% Cu including 1m @ 0.92% Cu from 56m, with mineralisation associated chalcopyrite (Refer DAL ASX Announcements from 16 March 2022). Copper assay results from rock chip sampling both Browns and Four Corners prospects are accompanied by silver assays of 80g/t and 21.5g/t respectively. Gold Gold mineralization in outcropping quartz veins at the Goodbody West Prospect has been bolstered by recent results from further systematic sampling. Infill soil sampling has outlined robust gold in soil anomalies with peak gold values of 132 ppb Au at Goodbody West, 93ppb Au at Goodbody Central and 50ppb Au at Goodbody East, complemented by outcropping, mineralized, gold-rich quartz veins. The footprint of the gold mineralized rock-chips within the broader Goodbody Prospect lie within a broader, 6km long, gold in soil anomaly at 2ppb threshold (Figures 3 and 4). (Refer DAL ASX Announcements from 8 November 2023). At Goodbody infill and close spaced systematic soil sampling completed has defined the following: • Goodbody West gold in soil anomaly above 10ppb Au has been defined over a strike length of 450m. • Goodbody Central gold in soil anomaly above 10ppb Au has been defined over a strike length of 300m. • Goodbody East gold in soil anomaly above 10ppb Au has been defined over a strike length of 500m. 4 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Figure 1: Dalaroo Metals, Lyons River Project in the Gascoyne Province REE and lithium neighbouring companies and prospects The sampled quartz veins are typically 5-30cm thick and are comprised of mainly quartz with minor biotite and locally, ferruginous oxide phases. They form sub-parallel to the pervasive structural fabric within foliation planes and commonly contain internal breccia zones consisting of Fe-oxide and silicarich matrices, surrounding fragmented quartz vein clasts. The samples were composed of either vein material, the adjacent wall rocks, or a combination of both. At Goodbody West, gold concentrations including 1.42g/t, 1.70g/t and 5.52g/t (Figure 3) have been returned from Dalaroo’s sampling of a particular set of quartz veins, hosted within a metasedimentary rock package comprising pelitic schist, siliceous chert, ironstone and BIF-style units. Historic rock chip sampling of quartz veins in this area returned up to 6.25g/t Au. In the Goodbody Central target area, pelitic schists are the dominant host rocks but zones of iron-oxide-rich, siliceous vein breccias and quartz-biotite-altered wall rocks are also prevalent (e.g. sample 230105_23, 0.48g/t Au). (Refer DAL ASX Announcements from 1 February 2023). 5 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Four Corners Browns Figure 2: Browns prospect, Pb soil geochemical anomalies (previously reported) and Pb rock chip sample assays, high-grade copper rock chip sample location and proposed Induced Polarisation survey lines It is noted that high-tenor soil anomalies and multiple rock-chip assays up to 5.52g/t Au (5520 ppb Au) associated with the Goodbody West, Central and East targets spatially coincide with intersections between interpreted WNW and NNE-trending structures (Figures 3 and 4). Such structural intersection zones represent potential zones of intensified deformation, that may be associated with favourable sites of hydrothermal fluid movement and gold mineralization. As such, the Goodbody gold targets are considered high priority for follow-up exploration work. (Refer DAL ASX Announcements from 28 November 2022 and 1 February 2023). Turbo Well A new gold target has been defined at Turbo Well with gold-in-soil anomalism extending over a strike length of 2km, adjacent to a regional ESE structural trend (Figure 4). A peak value of 47ppb Au is defined from results of both historical soil sampling and follow-up sampling by Dalaroo this year (Refer DAL ASX Announcements from 8 November 2023). 6 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Figure 3: Location of recent rock chip samples within the Goodbody gold prospect area and soil geochemical anomalies. Overlaid on greyscale Total Magnetic Intensity (TMI)1VD basemap imagery Figure 4: Location of Goodbody prospect in relation to additional gold prospects and interpreted regional structures within Lyons River Project area. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD base map 7 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Lithium Assessment of Lyons River Project wide lithium in soil geochemical data comprising 3,856 samples highlighted north-trending faults in the D5 Edmundian shear zones and the possible flow of Li-rich melts into the fault compartments in the central part of Lyons River Project (Figure 5). Figure 5: Lyons River Project – Major shear zone/corridor active during the Edmundian Orogeny, with potential for lithium bearing pegmatites A total of 813 soil samples were collected. One of the lithium targets (3km long and 0.5km wide) had a peak value of 334 ppm Li2O and is comparable to lithium anomalism obtained by Dalaroo’s neighbours (Refer MI6 ASX Announcement dated 25 July 2023 and 10 October 2023). Importantly, the lithium targets lie within the large pegmatite cluster measuring 9km X 6km in the eastern part of the project, where pegmatites up to 100m wide and 3km long have been mapped. The significant lithium anomalism outlined to date remains open to the south, west and east (Figures 6 and 7). Exploration was tracked to complete rock chip sampling over View Hill and at other lithium anomalies to define spodumenebearing pegmatites with drill planning in progress. In November 2023, Dalaroo executed a binding agreement (Sale Agreement) with Delta Lithium Limited (ASX: DLI or Delta Lithium) to sell the rights to lithium, caesium and tantalum minerals (Lithium Minerals) at its Lyons River Project (Lithium Mineral Rights). The consideration of $1,000,000 for the transaction comprised $500,000 in cash and $500,000 of DLI ordinary shares. In addition to the consideration, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River Project tenements (a commitment of $280,000 per annum at the date of the Sale Agreement) for a period of 3 years from Completion. The Company will still retain ownership of the Lyons River Project tenure (Table 1) and hold rights to all other metals and minerals apart from the Lithium Minerals (Refer DAL ASX announcement dated 1 December 2023). 8 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Figure 6: Structural domain map with north-south faults and significant lithium targets outlined at View Hill Lyons River Project Figure 7: View Hill: lithium soil geochemistry showing main anomalous trends, open to the south, west and east. 9 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Rare Earth Elements (REE) Two significant Rare Earth Element (REE) anomalies have been outlined at View Hill and 32 Mile Well prospects. REE anomalism at View Hill with peak value of 1,043 ppm TREO (Total Rare Earth Oxides) and strike length of 2.2km coincides with large thorium high. REE anomalism at 32 Mile Well with a peak value of 2,025 ppm TREO has a strike length of more than 3km (Figure 8). REE anomalies lie adjacent to a major NE-trending structural feature, compatible with relationships seen at Kingfisher Mining’s Mick Well REE discovery. Anomalies could represent hard rock or clay hosted REE mineralisation. Figure 8: TREO results on radiometrics thorium/google image (note coincident large thorium and TREO anomaly at View Hill prospect). 10 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Next Steps at Lyons River Gold With the completion of the heritage surveys over Goodbody West, Goodbody Central and Goodbody East and POW approvals in place, a focused air-core and/or shallow RC drill program is proposed to take place in February 2024. Further systematic soil sampling is proposed at the 2km strike length Turbo Well prospect. In addition, rock-chip sampling will be undertaken of outcropping quartz veins to outline the surface expression of the gold mineralisation. Copper/Pb-Zn-Ag Dalaroo proposes to carry out a Dipole-Dipole Induced Polarisation (DDIP) geophysical surveys in the next phase of exploration at the Browns prospect (Figure 9). The goal of these surveys will be the delineation of a mineralised body at depth that possesses not just the surface geochemical signature, but also the geophysical properties characteristic of a significant BHT/SEDEX deposit and copper mineralisation in the Browns Prospect area prior to the EIS diamond drill program (Figures 2 and 10). (Refer DAL ASX Announcements from 26 April 2023). Deeper diamond drilling is expected to allow a better understanding of the geological transition to more pyritic and phyllosilicate-rich units identified at the southern limits of the drill tested area interpreted to represent a transition in the pre-metamorphic protolith stratigraphy to lower energy sedimentary units, considered more prospective for BHT/SEDEX type deposits (Figures 2 and 11). Figure 9: Lyons River, Browns prospect and other five Pb-Zn soil geochemical prospects /targets over greyscale 1 Vertical Derivative Aeromagnetics image. 11 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Figure 10: Map view of aircore drilling completed at Browns on ground gravity data basemap. Figure 11: Browns prospect, simplified cross section A-B (see Figure 5) displaying selected mineralised drilling intercepts. 12 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Namban in the Wheatbelt Region of Western Australia PGE-Ni-Cu The Manning Prospect is located 150km north of Perth and 90km north of Chalice Mining’s world class Julimar Ni-Cu-PGE Project (Figures 6 and 10). The drilling program was designed to test large Ni-CuPGE*+Au geochemical anomalies (Pd soil anomaly with a peak value of 28 ppb coincident with Cu peak value of 605 ppm and Ni peak value of 206 ppm) covering an area of 2km X 0.5km that are coincident with Induced Polarisation (IP) anomalies with high chargeability values of up to 40 mV/V. Maiden diamond drilling program over Dalaroo’s 100% owned Manning Prospect has intersected copper sulphide mineralisation and gold mineralisation west of MI6’s Moora Project along strike of the Mt Yule Trend. The diamond drill program at Manning was partly funded by the Exploration Incentive Scheme (EIS) grant awarded to Dalaroo by the Government of Western Australia. Elevated copper, gold and silver assays up to 0.11% Cu, 0.61 g/t Au and 14.5 g/t Ag were intersected in the drilling program (Figure 12). Host lithologies are interpreted as differentiated intrusive mafic rocks (gabbroic dolerites) believed to be part of a larger (dismembered) intrusive mafic sill complex within a sequence of high-grade metamorphic rocks (gneisses/granulites) that remains prospective for magmatic intrusion hosted Ni-Cu-PGE-Au mineralisation at Namban. Figure 12: Namban Project – Manning prospect: Contoured soil anomalies, diamond drill hole locations and bedrock anomalies. Contours >5ppb Au contours in red; >75ppm Cu in green; >100ppm Ni in magenta; >5ppb Pt in blue 13 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Figure 13: Namban Project Location along the northern extent of the arcuate Julimar – Yule Corridor, truncated by the Darling Fault (dark blue) to the west. Image is 1VD-RTP magnetics draped with Bouger Gravity 14 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT Two orientations of chlorite-sulphide veinlets/fractures trending subvertical north-west and north northwest were logged in the holes. A steep NW plunge is inferred from the intersection of the vein sets. The sulphide intersections comprising chalcopyrite-pyrite+/- pyrrhotite rich zones in MNDD004. Pyritecarbonate alteration was noted in fractured felsic dykes that are NNW trending and are coincident with the regional copper and gold trend around the margins of the interpreted Julimar-Mt Yule Gravity corridor depicted in Figure 13. Next Steps at Namban Given the significant size of the surface geochemical anomalism (Ni-Cu-PGE*+Au) outlined (measuring 2km X 0.5km) at the Manning Prospect and only four holes drilled using Dalaroo’s successful grant under the EIS of $175,000, further exploration work is warranted. Future work at the Manning Prospect will include ground gravity surveys, which are expected to complement and expand upon the existing geochemical and geophysical datasets which have helped to delineate encouraging sulphide copper and gold mineralisation. Gravity surveys will provide additional insight through mapping the local density variation and potentially define deep seated intrusions or sources to the base metal mineralisation and differentiate prospective mafic and gabbroic units from the more recent Proterozoic dolerite dykes which trend through the project and provide targets for potential follow up drill programs. The net loss after income tax for the half-year was $315,298 (2022 loss restated: $1,211,637). Operations during the reporting period were primarily focused on exploration and resource development at the Company’s Lyons River and Namban Projects in Western Australia. At the end of the half-year the Company had $742,251 in cash (30 June 2023: $843,411). Capitalised mineral exploration and evaluation expenditure (including acquisition costs) is $971,759 (30 June 2023: $971,759). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There have been no significant changes in the state of affairs of the Company during or since the end of the financial period. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL PERIOD There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years. AUDITOR’S INDEPENDENCE DECLARATION A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act is set out on the following page. This report is made in accordance with a resolution of the Directors. DATED at Perth this 7th day of March 2024. David Quinlivan Chairman 15 DALAROO METALS LTD ABN 23 648 476 699 DIRECTORS’ REPORT COMPETENT PERSON The information in this report that relates to Exploration results is based on information compiled by Dalaroo Metals Ltd and reviewed by Mr Harjinder Kehal who is the Managing Director of the Company and is a Registered Practicing Geologist and Member of the AusIMM and AIG. Mr Kehal has sufficient experience that is relevant to the style of mineralisation, the type of deposit under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kehal consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. FORWARD-LOOKING INFORMATION This report may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning the planned exploration program and other statements that are not historical facts. When used in this report, the words "could", "plan", "estimate", "expect", "intend", "should" and similar expressions are forward-looking statements. Although Dalaroo believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. CAUTIONARY NOTE The statements and information contained in this report are not investment or financial product advice and are not intended to be used by persons in deciding to make an investment decision. In releasing this report, Dalaroo has not considered the objectives, financial position or requirements of any particular recipient. Accordingly, potential investors should obtain financial advice from a qualified financial advisor prior to making an investment decision. NO NEW INFORMATION Except where explicitly stated, this report contains references to prior exploration results, 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. 16 AUDITOR’S INDEPENDENCE DECLARATION In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Dalaroo Metals Limited for the half year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) no contraventions of any applicable code of professional conduct in relation to the review. Crowe Perth Cyrus Patell Partner Signed at Perth, 7 March 2024 Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Perth, an affiliate of Findex (Aust) Pty Ltd. © 2023 Findex (Aust) Pty Ltd DALAROO METALS LTD ABN 23 648 476 699 CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Half Year to 31 December 2023 $ Half Year to 31 Dec 2022 Restated $ Note Other income 11 1,031,391 6,006 1,031,391 6,006 (304,601) (262,716) Professional Fees (35,760) - Marketing and promotion (29,888) (24,795) Finance costs (1,894) (4,053) Depreciation (45,051) (41,868) Administration and Other expenses (104,495) (126,787) Loss on Revaluation of Listed entities (21,579) - (72,724) (12,252) Exploration costs expensed (730,697) (745,172) Loss before income tax (315,298) (1,211,637) - - (315,298 (1,211,637) - - (315,298) (1,211,637) (0.41) (2.24) Total income Expenses Staff costs and director fees 12 Share Based Payments 10 Income tax benefit/(expense) Loss for the half year Other comprehensive income Total comprehensive loss for the half year Loss per share Basic and diluted loss per share (cents) The above condensed statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. 18 DALAROO METALS LTD ABN 23 648 476 699 CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Note Current assets Cash and cash equivalents Financial Assets Trade and other receivables Prepayments Total current assets 5 6 Non-current assets Property, Plant & equipment Right of use assets Exploration & Evaluation Assets Total non-current assets Total assets 7 Current liabilities Trade and Other payables Lease Liability Employee Benefits Provision Shareholder Advances Total current liabilities 8(a) 8(b) Non-current liabilities Employee Benefits Provision Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity 9 10 Half year as at 31 December 2023 $ Full year as at 30 June 2023 $ 742,251 478,421 14,812 27,103 1,262,587 843,411 39,822 22,129 905,362 44,140 38,677 971,759 1,054,576 2,317,163 50,514 77,354 971,759 1,099,627 2,004,989 286,025 41,502 45,670 373,197 316,457 81,831 39,485 27,000 464,773 4,291 4,291 377,488 1,939,675 1,692 1,692 466,465 1,538,524 7,312,884 161,515 (5,534,724) 1,939,675 6,669,159 88,791 (5,219,426) 1,538,524 The above statement of condensed financial position should be read in conjunction with the accompanying notes. 19 DALAROO METALS LTD ABN 23 648 476 699 CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Issued Capital $ Accumulated Losses $ Reserves $ Total $ 2022 Balance at 1 July 2022 6,032,624 (2,746,725) 5,000 3,290,899 Loss for the period (restated) - (1,211,637) - (1,211,637) Shares issued (net of costs) - - - - Share based payments - - 12,252 12,252 6,032,624 (3,958,362) 17,252 2,091,514 6,669,159 (5,219,426) 88,791 1,538,524 - (315,298) - (315,298) Comprehensive Income: Balance at 31 December 2022 2023 Balance at 1 July 2023 Comprehensive Income: Loss for the period Shares issued (net of costs) 643,725 Share based payments Balance at 31 December 2023 643,725 - - 72,724 72,724 7,312,884 (5,534,724) 161,515 1,939,675 The above statement of condensed changes in equity should be read in conjunction with the accompanying notes. 20 DALAROO METALS LTD ABN 23 648 476 699 CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Note Half Year to 31 December 2023 $ Half Year to 31 December 2022 $ Cash flows from operating activities Receipts from customers Interest received Other income Funds from Government Grants Payments to suppliers and employees (corporate) Payments to suppliers and employees (exploration) 4,400 3,072 23,919 (455,489) (751,787) 3,650 2,356 (418,423) (809,073) (1,175,885) (1,221,490) Proceeds from disposal of mineral rights Payments for property, plant and equipment 500,000 - (50,110) Net cash flows from/(used in) investing activities 500,000 (50,110) Proceeds from the issue of shares and options Payments for share issue costs Repayment of lease liabilities 670,500 (53,775) (42,000) (42,134) Net cash flows from/(used in) financing activities 574,725 (42,134) Net (decrease)/increase in cash held (101,160) (1,313,734) Net cash flows used in operating activities Cash flows from investing activities Cash flows from financing activities Cash at the beginning of the period 5 843,411 1,675,897 Cash at the end of the period 5 742,251 362,163 The above statement of condensed cash flows should be read in conjunction with the accompanying notes. 21 DALAROO METALS LTD ABN 23 648 476 699 NOTES TO THE INTERIM FINANCIALS STATEMENTS FOR THE HALF- YEAR END 31 DECEMBER 2023 Note 1 Basis of preparation of half-year report Statement of compliance The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the 30 June 2023 annual financial statements. The Company is a for profit entity for financial reporting purposes under Australian Accounting Standards. The half-year financial report was approved by the Board of Directors on 7th March 2024. Basis of preparation The financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The accounting policies and methods of computation are consistent with those previously disclosed in the 30 June 2023 annual financial statements, except for the new accounting policies adopted by the Company during the period, as disclosed below: Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at fair value through profit or loss Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: i) ii) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss. 22 DALAROO METALS LTD ABN 23 648 476 699 NOTES TO THE INTERIM FINANCIALS STATEMENTS FOR THE HALF-YEAR END 31 DECEMBER 2023 Fair Value A number of the company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods: Investments in equity securities The fair value of financial assets at fair value through profit or loss, is determined by reference to their quoted bid price at the reporting date. For investments with no active market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length market transactions, reference to the current market value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. Going concern basis for preparation of financial statements This half-year interim financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. During the half-year ended 31 D