Announcement PDF ARDIDEN LIMITED ABN 82 110 884 252 CONDENSED HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 ARDIDEN LIMITED CORPORATE DIRECTORY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 DIRECTORS Michelle Roth (Independent Non-Executive Chair) Greg Romain (CEO and Managing Director) Jeremy Robinson (Non-Executive Director) Doug Jendry (Independent Non-Executive Director) COMPANY SECRETARY Tara Robson REGISTERED AND PRINCIPAL OFFICE Ground Floor, 45 Ventnor Avenue WEST PERTH WA 6005 POSTAL ADDRESS PO Box 611 West Perth WA 6872 Telephone: (08) 6184 5938 Website: www.ardiden.com.au SHARE REGISTRY Computershare Investor Services Pty Ltd Level 17, 221 St Georges Terrace Perth WA 6000, Australia Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033 AUDITORS Nexia Perth Audit Services Pty Ltd Level 3 88 William Street Perth WA 6000 SOLICITORS Gilbert +Tobin Level 16 Brookfield Place Tower 2 123 St Georges Terrace Perth WA 6000 AUSTRALIAN SECURITIES EXCHANGE Ardiden Limited shares (ADV) are listed on the Australian Securities Exchange. CORPORATE STRUCTURE Ardiden Limited is a limited liability company that is incorporated and domiciled in Australia. Ardiden Limited has prepared a consolidated financial report incorporating the entities that it controlled during the half year (collectively the “Group”) as follows: Ardiden Limited Ardiden Canada Ltd Uchi Gold Canada Ltd Parent Entity 100% owned and controlled entity 100% owned and controlled entity 1 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Your Directors present their report for Ardiden Limited (‘Ardiden’ or the ‘Company’) and its controlled entities (‘Consolidated Entity’ or ‘Group’) for the half-year ended 31 December 2023 (Period). Ardiden is a limited liability company incorporated and domiciled in Australia. The Company has prepared a consolidated financial report incorporating the entities it controlled during the Period as follows: Entity Ardiden Limited Ardiden Canada Ltd Uchi Gold Canada Ltd Description - Parent entity - 100% controlled entity - 100% controlled entity DIRECTORS The names of the Directors of the Company in office during the Period and up to the date of this report are as follows: Directors Michelle Roth Greg Romain Jeremy Robinson Douglas Jendry Bruce McFadzean Pauline Gately Matthew Freedman Position Independent Non-Executive Chair (Chair since 21 August 2023) Managing Director and Chief Executive Officer Non-Executive Director (Appointed 21 August 2023) Independent Non-Executive Director (Appointed 25 January 2024) Independent Non-Executive Chair (Resigned 21 August 2023) Independent Non-Executive Director (Resigned 30 September 2023) Independent Non-Executive Director (Appointed 21 August 2023 and resigned 25 January 2024. Directors were in office from the beginning of the Period until the date of this report unless otherwise stated. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES The principal continuing activities during the Period within the Consolidated Entity were exploration for and evaluation of mineral resources. REVIEW OF OPERATIONS PICKLE LAKE GOLD PROJECT, ONTARIO The Pickle Lake Gold Project is a contiguous District-Scale landholding, located east of Red Lake in the wellendowed Uchi Geological sub-province of north-western Ontario, Canada (Figure 1). The Uchi Province is host to numerous producing gold mines at Red Lake and at Musselwhite, and is a highly active exploration area with Evolution, Newmont, Kinross, and numerous other development and exploration companies all actively pursuing gold exploration work in the area. Figure 1 – Location of Ardiden’s Pickle Lake Gold project within the Uchi Belt of northwest Ontario1. 1 * Source S&P Global Market Intelligence 2023 2 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 2023 Results (Western Hub – Pickle Lake Gold Project) Work conducted during the Period focused on the results received from the spring 2023 drilling campaign in the Western Hub. The 34-hole diamond drill program totaled 5,473m, and was designed to test the extent of the mineralisation halo, along with the affinity to the presumed iron formation related sulphide sequence identified in previous drilling. The results received during the Period, confirm the Dorothy Dobie trend extends from the Esker Prospect through the historic Golden Patricia Mine which produced 619,796 oz Au @ 15.2 g/t Au2 between 1988-1997 travelling northwest (NW) towards and beyond the Company’s West Prospect, spanning >35kms.(Figure 2) Figure 2 – Ardiden’s Western Hub which includes the Dorothy Dobie Prospects, Esker, Cooper, Meen, Tonsil, West which are along strike to the past producing Golden Patricia Mine. In addition to the broad mineralisation zone at Dorothy and West, some higher-grade intervals appear present within the Dorothy-Dobie Trend. Importantly, they are very shallow depths with all intersecting the zone at less than 75m from surface. The results (Refer ASX 7 August 2023) reported below confirm higher-grade intervals within the broader mineralised zones of:    DR-23-12 with 3.00m @ 2.15 g/t from 52.00m, DR-23-20 with 3.34m @ 3.22 g/t from 56.60m, and DR-23-21 with 3.05m @ 2.99 g/t from 64.00m. The Dorothy Prospect displays a highly prospective zone with a strike length of 900m along the Dorothy-Dobie Trend. This prospective area includes the previously reported holes DR-23-04A through to DR-23-11 (ASX 11 May 2023) and DR-22-01 and DR-22-02 (ASX announcements 17 August 2022 and 22 September 2022). The trend appears to be SE-NW trending and dipping shallowly to the NW and the mineralisation within this zone remains open at depth. All results within the zone are at very shallow depths with all intersecting the zone at less than 75m from surface. The Company continues to develop its understanding of the strike extension to link the Dorothy and West Prospects. 2 Information in relation to historical gold production at the Pickle Lake Gold Camp, and Golden Patricia Mine in Figures and notes above have been referenced from three sources of publication, namely: 1. Harron, G. A. 2009. Technical Report on Three Gold Exploration Properties Pickle Lake Area, Ontario, Canada. G.A. Harron, P.Eng., G.A. Harron & Associates Inc. 3 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Figure 3 – Recent drilling results over the Dorothy and West Prospect, during the Period in blue (ASX 7 August 2023). Historical results in white (ASX: 17 August 2022, 26 September 2022, and 11 May 2023) Figure 4 – Drill results highlighting the prospective 900m strike length at the SE Dorothy Zone Drilling conducted beyond this prospective area at Dorothy displays lower grades of mineralisation along the Dorothy-Dobie Trend and extends for over 2km. Whilst this remains early stages at Dorothy and West, the presence of gold appears consistent in 31 of the 34 holes drilled in the current program. Holes DR-23-19 through to DR-23-21 are situated up to 400m to the SE of the prospective zone and displayed results that require further review and follow-up assessment with a broad mineralisation envelope of up to 43.90m @ 0.40 g/t (DR-23-20) that also appears consistent with a narrow higher-grade zone of 3.34m @ 3.22 g/t (Figure 4). The new holes to 4 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 the SE of Dorothy extend the total strike length containing higher grade incepts to circa 900m providing a very strong target at depth for further drill testing. The four drill holes at the West Prospect (DR-23-34/DR-23-37) intercepted shallow mineralisation from surface. These holes were designed to test historical results completed at this prospect in 1988. Importantly, mineralisation commenced in DR-23-37 at 2m once traversing the overburden with mineralisation at the top of the hole before finishing at 152m with mineralisation continuing. Mineralisation appears unlike the drilling at Dorothy and was not conducive to the host diorite sequence but within a series of meta volcanics, altered basalts, and gabbro’s. An increased presence of quartz feldspar porphyries was consistent at the West prospect that appear to be post mineralisation. The West Prospect, at approximately 1.6km NW of the Dorothy Prospect, is thought to be a mineralised splay off the Dorothy-Dobie Trend. Figure 5 - Drill results highlighting gold mineralisation at the newly tested West Prospect Drill results with the most significant intercepts of the holes reported in in the half-year from Dorothy and West are provided in Table 1 at a 1.0m interval with 0.2g/t Au cut-off. Table 1 – Assay results with the most significant intercepts at the Dorothy and West Prospect at 0.2g/t Au cut-off. DR-23-20 3.34m @ 3.22 g/t from 56.66m, within a broader envelope of 43.90m @ 0.40 g/t from 56.66m DR-23-21 3.05m @ 2.99 g/t from 64.00m within a broader envelope of 21.69m @ 0.46 g/t from 64.00m DR-23-12 3.00m @ 2.15 g/t from 52.00m within a broader envelope of 28.00m @ 0.38 g/t from 46.00m DR-23-19 2.65m @ 0.93 g/t from 260.60m within a broader envelope of 43.25m @ 0.25 g/t from 220.00m DR-23-37 16.00m @ 0.91 g/t from 2.00m, and 20.67m @ 0.71 g/t from 23.00m within a broader envelope of 149.00m @ 0.31 g/t from 2.00m 5 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 First Nations – ESG Technical Ecological Knowledge Study The Technical Ecological Knowledge Study (TEK) has continued over the Western Hub during the Period. Ardiden has a firm commitment with each First Nation community in developing a long-lasting relationship built on trust and respect. Conducting the TEK is one important piece of understanding the traditional knowledge and customs of our First Nation stakeholders. CEO and Managing Director Greg Romain met Chief Merle Loon, the recently elected Chief of Mishkeegogamang Ojibway Nation, and Chief Russell Wesley of Cat Lake First Nation held in Thunder Bay during September (Figure 6). Figure 6 -Chief Merle Loon, Mishkeegogamang First Nation, Ardiden’s Tony Marinaro and Greg Romain, with Chief Russell Wesley Cat Lake First Nation Permitting and Tenure The Company remains substantially permitted with all prospects currently active for early exploration activity across the Pickle Lake Gold Project (Figure 7). The next permit renewal (Western Patricia Prospect) is due in November 2024. Figure 7 – Status of Permitting at the District-Scale Pickle Lake Gold project. 6 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Field Program and Costs Review A field program, which consisted of field mapping activities prior to the snow setting in, was conducted during the Period. The aim was to identify historical drill collars to incorporate into the geological model, to better understand the prospective 900m strike length at Dorothy and the newly discovered mineralisation at the West Zone. The Company continues to review its field costs and logistics in search of cost reduction, including the use of a helicopter. New Opportunities The Company remains focused on understanding the structural controls and various mineralisation styles at the Pickle Lake Gold Project. However, Ardiden continues to evaluate new exploration and project opportunities that it believes complement the existing project or where its experience and skills set can provide a competitive advantage. The Company confirms that it is not aware of any other new information or data that materially affects the information included in the original market announcements referred to above, and that all material assumptions and technical parameters underpinning the estimates in those announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. CORPORATE Ardiden’s Annual General Meeting of Shareholders was held in West Perth on 22 November 2023 and all resolutions put to shareholders were approved by a poll. Share Consolidation As approved by shareholders at the Company’s Annual General Meeting held 22 November 2023, the Company has consolidated its issued capital on the basis of 43 to one. The consolidation was completed on 24 November 2023 with the ensuing issued capital as follows: DESCRIPTION Ordinary Fully Paid Shares Options Expiring 31-Aug-2024 Ex $0.774 Options Expiring 20-Apr-2026 Ex $0.946 Performance Rights Expiring 24-Apr-2027 Options Expiring 24-Apr-2027 Ex $0.344 Options Expiring 13-Jun-2027 Ex $0.43 Options Expiring 14-Jun-2027 Ex $0.301 Options Expiring 20-Apr-2026 Ex $0.8385 # 62,517,506 340,115 232,558 174,418 58,139 348,836 46,511 930,813 Board Changes On 21 August 2023 Ardiden announced that Bruce McFadzean was stepping down with immediate effect from his position as a Non-Executive Chair of the Board of Ardiden, with Non-Executive Director Michelle Roth taking the reigns as Non-Executive Chair. On the same date Jeremy Robinson and Matthew Freedman were appointed as Non-Executive Directors of the Company. Subsequent to the end of the Period, experienced mining executive Douglas Jendry was appointed as an Independent, Non-Executive Director. On the same date, Mr Matthew Freedman resigned as Non-Executive Director of the Company. 1. FINANCIAL POSITION & OPERATING RESULTS The Company had a strong cash balance at 31 December 2023 of A$7.64 million. In addition to the cash balance, Canada Revenue Agency (‘CRA’) continues to hold part proceeds as withholding for the disposal of the lithium assets. A total of CAD$4.09 million (A$4.52 million) remains on deposit with CRA. Ardiden expects the majority of the funds on deposit to be remitted back to Ardiden in CY 2024 following receipt of the tax certificates from CRA. 7 ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Ardiden continues to retain ~13 million shares in Green Technology Metals (‘GTM’)(ASX: GT1), which it acquired as part proceeds from the sale of Ardiden’s lithium assets. These shares were released from escrow on 10 November 2023. The current value of the holding is ~$2.15M3. The financial results of the Group for the Period ended 31 December 2023 are: Cash and cash equivalents ($) Net assets ($) 31-Dec-23 7,641,296 34,978,956 30-Jun-23 9,353,400 41,926,035 % Change (18.3%) (16.6%) Interest income ($) Net (loss)/profit after tax ($) (Loss)/earnings per share (cents) 31-Dec-23 203,386 (6,950,264) (0.111) 31-Dec-22 46,921 15,197,142 0.0057 % Change 333.5% (145.7%) (2047.4%) Included in the loss for the Period is the $5,807,036 loss arising from the decline in the market value of the GTM shares received as part consideration for the sale of the lithium projects to GTM in previous years. 2. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS In the opinion of the Directors, there were no other significant changes in the state of affairs of the Consolidated Entity that occurred during the financial Period under review not otherwise disclosed in this report or in the financial report. 3. EVENTS SUBSEQUENT TO REPORTING DATE On 25 January 2024, experienced mining executive Douglas Jendry was appointed as an Independent, NonExecutive Director and Mr Matthew Freedman resigned as Non-Executive Director of the Company. There are no other matters or circumstances that have arisen since 31 December 2023 that have or may significantly affect the operations, results, or state of affairs of the Consolidated Entity in future financial years. 4. ROUNDING OF AMOUNTS The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. 5. DIVIDENDS No dividends were declared or paid during the year and no recommendation is made as to dividends. 6. RISK MANAGEMENT There have been no material changes to the descriptions of the Group’s risk management framework as outlined in the annual financial report as at 30 June 2023. 7. AUDITOR INDEPENDENCE We have received the independence declaration from the auditor of Ardiden Limited, Nexia Perth Audit Services Pty Ltd, a copy of which is attached to the Directors’ Report on page 9 of the financial report. This report is made in accordance with a resolution of the Directors. Gregory Romain Managing Director and Chief Executive Officer Perth, Western Australia Dated: 14 March 2024 3 As at closing price ($0.165) of GT1 on 13 March 2024 8 To the directors of Ardiden Limited Auditor’s Independence Declaration under section 307C of the Corporations Act 2001 As lead auditor for the review of the financial statements of Ardiden Limited for the half-year ended 31 December 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (b) any applicable code of professional conduct in relation to the review. Yours sincerely Nexia Perth Audit Services Pty Ltd Justin Mulhair Director Perth 14 March 2024 9 ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Notes 31-Dec-23 $ 31-Dec-22 $ 2 (5,807,036) 203,386 1,730 (4,209) - 2,544,657 46,921 13,685 14,206,562 (508,491) (677,140) (118,138) (40,366) (6,950,264) (6,950,264) (917,812) (577,552) (89,401) 15,227,060 (29,918) 15,197,142 (38,181) (6,987,445) (38,364) 15,158,778 Cents Cents Fair value adjustment Interest income Other income Loss on sale of property, plant, and equipment Gain on disposal of 20% share in lithium assets Expenses Administration, consulting and other expenses Salaries and wages Foreign exchange loss Share-based payments (Loss)/profit before income tax expense Income tax expense Net (loss)/profit for the Period Other comprehensive income Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Total other comprehensive profit for the Period Earnings per share attributable to the ordinary equity holders of the Company: Basic (loss)/earnings per share Diluted (loss)/earnings per share 5 (0.111) (0.111) 0.0057 0.0055 The accompanying condensed notes form part of these financial statements. 10 ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Notes 31-Dec-23 $ 30-Jun-23 $ 7,641,296 4,523,240 524,768 3,794,573 16,483,877 9,353,400 4,852,836 432,082 9,600,048 24,238,366 18,595,593 184,468 21,927 18,801,988 35,285,865 17,805,555 188,387 54,817 18,048,759 42,287,125 LIABILITIES Current Liabilities Trade and other payables Provisions Lease liabilities Total Current Liabilities 222,419 43,742 23,442 289,604 248,095 40,955 58,198 347,248 Non-Current Liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES 17,306 17,306 306,909 13,842 13,842 361,090 34,978,956 41,926,035 59,269,005 893,176 (25,183,225) 34,978,956 59,269,005 889,991 (18,232,961) 41,926,035 ASSETS Current Assets Cash and cash equivalents Proceeds held in trust Trade and other receivables Financial Assets Total Current Assets Non-Current Assets Exploration and evaluation expenditure Plant and equipment Right of use assets Total Non-Current Assets TOTAL ASSETS 2 3 NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY 4 The accompanying condensed notes form part of these financial statements. 11 ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Issued Capital $ At 1 July 2023 Option Reserves $ Foreign Currency Translation Reserve $ Accumulated Losses $ Total Equity $ 59,269,005 732,447 157,544 (18,232,961) 41,926,035 - - - (6,950,264) (6,950,264) - - (37,181) (37,181) (6,950,264) (37,181) (6,987,445) - - (37,181) (6,950,264) (6,987,445) Transactions with owners in their capacity as owners: Share-based payments 40,366 Total equity transactions 40,366 - - 40,366 40,366 Comprehensive income Loss for the Period Other comprehensive loss for the Period Total comprehensive loss for the Period At 31 December 2023 59,269,005 772,813 120,363 (25,183,225) 34,978,956 At 1 July 2022 59,130,485 1,134,341 190,877 (34,507,465) 25,948,238 - - - 15,197,142 15,197,142 - - (38,364) - (38,364) - - (38,364) 15,197,142 15,158,778 - - 229,401 - 76,970 76,970 (1,480) 227,921 152,513 (19,233,353) 41,334,937 Profit for the Period Other comprehensive loss for the Period Total comprehensive (loss)/income for the Period Transactions with owners in their capacity as owners: Shares issued during the Period Share-based payments 140,000 89,401 Options cancelled during the Period (76,970) Capital raising costs (1,480) Total equity transactions 138,520 12,431 At 31 December 2022 59,269,005 1,146,772 The accompanying condensed notes form part of these financial statements. 12 ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Notes 31-Dec-23 $ 31-Dec-22 $ Cash flows used in operating activities Payments to suppliers and employees Tax receipts Interest received Net cash flows used in operating activities (1,099,823) 217,130 228,452 (652,241) (1,115,847) 46,770 (1,069,077) Cash flows used in investing activities Proceeds from partial sale of lithium assets Proceeds from sale of plant & equipment Payments for exploration expenditure Payments for plant and equipment Net cash flows (used in)/from investing activities 9,633 (1,011,363) (35,424) (1,037,154) 7,737,400 27,911 (2,653,642) (53,445) 5,058,224 - - (1,691,395) 9,353,400 3,989,147 4,372,317 (20,709) (11,022) 7,641,296 8,350,442 Cash flows from financing activities Proceeds from issue of shares and exercise of options Payment of capital raising costs Net cash flows from/(used in) financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the Period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the Period The accompanying condensed notes form part of these financial statements. 13 ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 1. GENERAL INFORMATION Statement of Compliance The half-year condensed consolidated financial report (the ‘half-year report’) is a general-purpose financial report prepared in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting (‘AASB134’), as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS34 Interim Financial Reporting. The half-year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report, and any public announcements made by the Company during the Period in accordance with the continuous disclosure requirements of the Corporation Act 2001. Basis of Preparation The condensed consolidated financial statements have been prepared on an historical cost basis, except for the revaluation of certain 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. Accounting Policies The accounting policies adopted in the current Period are consistent with those adopted and disclosed in the Group’s annual financial report for the year ended 30 June 2023. The accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. Adoption of New and Revised Standards Standards and Interpretations Applicable to Current Interim Period The Company has adopted all new and amended standards and interpretations applicable for the half-year current period. The adoption of these standards and interpretations had no material impact on the half-year report or on the financial position or performance of the Company. Future Accounting Standards and Interpretations The Group has not elected to early adopted any other new standards or amendments that are issued but not yet effective. Critical Accounting Estimates and Judgement The critical estimates and judgements are consistent with those applied and disclosed in the June 2023 annual report. Rounding of Amounts The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Going Concern The half-year financial report has been prepared on the basis of accounting principles applicable to a going concern, which assumes the commercial realisation of the future potential of the Company’s and Group’s assets and the discharge of their liabilities in the normal course of business. In arriving at this position, the directors have had regard to the fact that based on their ability to manage discretionary expenditure in line with the Company’s cashflow and the strong cash reserves at the date of the half-year report, and has access to sufficient cash to fund administrative and other committed expenditure for a period of at least 12 months from date of signing the half-year report. 14 ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 2. FINANCIAL ASSETS Security deposits Listed Shares in Green Technology Metals Classified as: Financial Assets - Current 31-Dec-23 30-Jun-23 $ $ 75,459 3,719,114 3,794,573 73,898 9,526,150 9,600,048 3,794,573 9,600,048 The terms and conditions of the security deposits are interest bearing at market rates and refundable upon completion of performance obligations associated with completion of the lease term. Listed shares in Green Technology Metals Balance at 30 June 2023 Fair value decrease As at 31 December 2023 Number 13,049,520 13,049,520 $ 9,526,150 (5,807,036) 3,719,114 Listed shares are revalued at fair value through the profit and loss using the closing price at the end of the reporting period ($0.285 per share). Classification The group classifies its financial assets in the following measurement categories: – Those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss); and – Those to be measured at amortised cost. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. (FVOCI) Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership. Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Measurement - Equity instruments The Group subsequently measures all equity investments at fair value. Where the group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. 15 ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 3. EXPLORATION AND EVALUATION EXPENDITURE Expenditure brought forward Expenditure incurred Disposal of lithium assets Effect of exchange rate on opening balance Impairment expense Expenditure carried forward 31-Dec-23 $ 17,805,555 802,228 (12,190) - 30-Jun-23 $ 14,181,860 5,419,608 (1,793,700) (275) (1,938) 18,595,593 17,805,555 The ultimate recoupment of the mining tenements and exploration and evaluation expenditures carried forward is dependent upon the successful development and commercial exploitation and/or sale of the relevant areas of interest, at amounts at least equal to book value. A regular r