Future Metals NL — Audit Report / Information 2022

Oct 3, 2022

National Storage Mechanism | Additional information

RNS Number : 4577B

Future Metals NL

03 October 2022

3 October 2022

Future Metals NL

Final Results for the Year Ended 30 June 2022 and

Corporate Governance Statement

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased to announce the Company's final results for the year ended 30 June 2022.

Please see below extracts from the Company's Annual Report and Accounts for the year ended 30 June 2022, as follows:

·      Chairman's Statement

·      Consolidated Statement of Profit or Loss and Other Comprehensive Income

·      Consolidated Statement of Financial Position

·      Consolidated Statement of Changes in Equity

·      Consolidated Statement of Cash Flows

Further details on the Company's activities during the year are set out in the Directors' Report, which can be found in the full Report and Accounts available at the following link: http://www.rns-pdf.londonstockexchange.com/rns/4577B_1-2022-10-2.pdf and on the Company's website at https://future-metals.com.au/investor-centre/reports/annual-reports/. 

The Company has also released its Appendix 4G: Key to Disclosures - Corporate Governance Council Principles and Recommendations and its Corporate Governance Statement to the Australian Securities Exchange ("ASX"). Copies of these documents are also available on the Company's website at https://future-metals.com.au/.

This announcement has been approved for release by the Board of Future Metals NL.

For further information, please contact:

Future Metals NL	+61 8 9480 0414
Jardee Kininmonth	[email protected]
Strand Hanson Limited (Nominated Adviser)	+44 (0) 20 7409 3494
James Harris/James Bellman
W H Ireland Limited (UK Broker) Harry Ansell/Katy Mitchell	+44 (0) 207 220 1670
White Noise Communications (Australian IR/PR) Fiona Marshall	+61 400 512 109

Chairman's Statement

It is my pleasure to present the 2022 Annual Report for Future Metals NL (ASX | AIM: FME) (Future Metals) on behalf of the Board, with this being the first full year of operations for Future Metals'. It has been a very active period for the Company after successfully acquiring the Panton PGM-Ni Project  in June 2021 and transforming the Company into an advanced PGM and Ni exploration and development company. The Company's achievements during the past twelve months include:

•     Completion of drilling that enabled the modelling and estimation of the bulk PGM-Ni mineralisation and scale potential at Panton

•     Significant increase to Panton's JORC Mineral Resource estimate, showing it to be a PGM deposit of global significance with contained PGM(3E) increasing by 108% to 5.0Moz and contained Ni increasing by 526% to 239kt

•     Development of a strategy to progress the development of Panton via a staged approach facilitated by the significant discrete, high-grade PGM reef allowing for a capital-lite initial project followed by a larger scale project utilising the bulk PGM-Ni mineralisation

•     A new exploration model highlighting the significant potential for a new Ni-Cu-PGE discoveries to be made at Panton in the previously untested basal contact

•     Appointment of Mr. Jardee Kininmonth as Chief Executive Officer and Managing Director, along with several other senior management appointments

Recent exploration discoveries and the strong price environment across palladium and platinum has helped highlight the potential for Australia to become a major PGM mining jurisdiction over time. This renewed focus on the PGM sector from investors, offtakers and governments has promoted the exploration for and development of PGM projects, particularly in Western Australia. Panton is one of the most progressed of such projects and we are utilising the significant body of work completed on the project to deliver the first PGM project in Australia. We are fortunate to have built a Board and management team who have prior experience with Panton, allowing us to capitalise on this prior body of work as we take it through development. While Panton's high-grade resource has been well known for some time, we have since proven that it can be an asset of global scale by drilling out the surrounding bulk mineralisation. This has been an incredibly important addition to the project, allowing the Company to undertake a staged approach to Panton's development, an approach informed by capital requirements, permitting and metallurgical progress.

We are leaving no stone unturned when proving Panton's value and this extends to understanding its true exploration potential too. While the focus at Panton by the Company, and its prior owners has always been the high-grade reef, there was plenty of commentary in historical reports and some indications in historical drill hole data of sulphide mineralisation that was not related to the geology of the reef. This led to a review of Panton's structural geology, in combination with the existing exploration database and geophysical data. The ultimate result of that review is that Panton is highly prospective for new Ni-Cu-PGE discoveries, with the basal contact being largely untested despite being the most fertile geology for high grade sulphide accumulations. We are extremely excited to test this potential with a targeted exploration drilling programme supported by new ground geophysical surveys.

I would like to acknowledge the communities in which we operate, in particular, the Malarngowem community. We recognise the importance of a cooperative and trusting relationship with the local communities to form a sustainable, long term and mutually beneficial partnership. I would also like to thank my fellow Board members, and most importantly our relatively new management team, led by Managing Director, Jardee Kininmonth.

Finally, I would like to thank our shareholders for the support shown over the past 12 months. It has been a challenging period in the equity markets over this period however, as highlighted above, we believe the value of the Panton project has never been better and we are looking forward to an exciting and busy year ahead.

Justin Tremain

Non-Executive Chairman

Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2022

Note		30-Jun-22         30-Jun-21 $                        $
Interest received		6,823	820
Other income		552	-
Employee and Director benefits expense		(574,503)	(20,812)
Professional and Consultants		(438,512)	(142,686)
ASX and AIM and share registry fees		(1,954,846)	(33,660)
Travel expenditure		(28,835)	(12,063)
Listing expense		-	(4,064,281)
Share based payment expense	16	(877,463)	(1,789,333)
Amortisation/depreciation expense		(79,538)	(5,936)
Unrealised Foreign exchange gain/(loss)		1,697	2,229
Realised Foreign exchange gain/(loss)		(446)	-
Other expenses		(368,229)	(241,734)
Loss before income tax		(4,313,300)	(6,307,456)
Income tax expense	3		-
Loss after income tax		(4,313,300)	(6,307,456)
Other comprehensive loss
Items that may be reclassified to profit or
loss
Other comprehensive income/(loss)		-	-
Other comprehensive income/(loss) for the		-
year net of tax		-
Total comprehensive loss for the year		(4,313,300)	(6,307,456)
Loss per share for the year attributable to
the members of Future Metals NL Basic and diluted loss per share (cents)	15	(1.23)                                (4.10)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes in the full Report and Accounts.

Consolidated Statement of Financial Position

as at 30 June 2022

Note		30-June-22               30-Jun-21 $                              $
Current Assets
Cash and cash equivalents	4	3,331,607	9,555,684
Trade and other receivables	5	78,447	175,840
Total Current Assets		3,410,054	9,731,524
Non-Current Assets
Right of Use Assets		-	83,101
Deferred Exploration & Evaluation Expenditure	6	19,767,161	17,020,143
Property, plant and equipment		35,935	-
Total Non-Current Assets		19,803,096	17,103,244
Total Assets		23,213,150	26,834,768
Current Liabilities
Trade and other payables	7	1,067,868	2,029,502
Lease Liabilities		-	72,404
Total Current Liabilities		1,067,868	2,101,906
Non-Current Liabilities
Lease Liabilities		-	12,421
Total Non-Current Liabilities		-	12,421
Total Liabilities		1,067,868	2,114,327
Net Assets		22,145,282	24,720,441
Equity
Issued capital	8	29,689,231	29,238,564
Reserves	9	3,076,807	1,789,333
Accumulated losses	10	(10,620,756)	(6,307,456)
Total Equity		22,145,282	24,720,441

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes in the full Report and Accounts.

Consolidated Statement of Changes in Equity

for the year ended 30 June 2022

	Issued capital         $	Accumulated losses         $	Share based payments           $	Total    $
Balance at 12 November 2020	-	-	-	-
Total comprehensive loss for the period
Loss for the period	-	(6,307,456)	-	(6,307,456)
Other Comprehensive loss	-	-	-	-
Total comprehensive loss for the period	-	(6,307,456)	-	(6,307,456)
Transactions with owners in their
capacity as owners
Shares issued during the period	30,854,125	-	-	30,854,125
Cost of issue	(1,615,561)	-	-	(1,615,561)
Share based payment (note 16)	-	-	1,789,333	1,789,333
Balance at 30 June 2021	29,238,564	(6,307,456)	1,789,333	24,720,441

	Issued capital         $	Accumulated losses         $	Share based payments           $	Total    $
Balance at 1 July 2021	29,238,564	(6,307,456)	1,789,333	24,720,441
Total comprehensive loss for the year
Loss for the year	-	(4,313,300)	-	(4,313,300)
Other Comprehensive loss	-	-	-	-
Total comprehensive loss for the year	-	(4,313,300)	-	(4,313,300)
Transactions with owners in their
capacity as owners
Shares issued during the year	450,667	-	(450,667)	-
Options issued during the year	-	-	50,000	50,000
Cost of issue	-	-	-	-
Share based payment (note 16)	-	-	1,688,141	1,688,141
Balance at 30 June 2022	29,689,231	(10,620,756)	3,076,807	22,145,282

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes in the full Report and Accounts.

Consolidated Statement of Cash Flow

for the year ended 30 June 2022

Note		30-Jun-22               30-Jun-21 $                              $
Cash flows from operating activities Payments to suppliers and employees		(1,696,154)	(518,124)
Payments for Offer and ASX/AIM listing
costs		(1,073,800)	-
Interest received		6,823	820
Other receipts		1,074	-
Net cash used in operating activities	4	(2,762,057)	(517,304)
Cash flows from investing activities
Payments for exploration and evaluation	6	(2,907,394)	(15,366,563)
Payments for tenement acquisition stamp
duty		(560,415)	-
Acquisition of property, plant and
equipment		(44,241)	-
Proceeds from acquisition of Future Metals
NL		-	3,555,086
Net cash used in investing activities		(3,512,050)	(11,811,477)
Cash flows from financing activities Proceeds from issue of shares		-	23,500,026
Proceeds from issue of options		50,000	-
Payments for share issue costs		-	(1,615,561)
Net cash provided by financing
activities		50,000	21,884,465
Net increase/(decrease) in cash and cash
equivalents		(6,224,077)	9,555,684
Cash and cash equivalents at beginning of
year		9,555,684	-
Cash and cash equivalents at the end of	4	3,331,607	9,555,684
the year

The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes in the full Report and Accounts.

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