Your Directors present their report on Sunstone Metals Ltd (“Sunstone” or “Company”), and the entities it controlled (“Consolidated Entity” or “Group”) for the financial year ended 30 June 2023. Directors The following persons were Directors of Sunstone Metals Ltd at all times during the financial year and up to the date of this report: Mr Graham Ascough Non-Executive Chairman Mr Malcolm Norris CEO & Managing Director Mr Stephen Stroud Non-Executive Director Principal activities During the period the principal activities of the Group consisted of mineral exploration and evaluation. Dividends No dividends were paid or recommended to be paid to members during the financial period. Review of operations Refer to the Operating Review contained in the Annual Report for further discussion regarding the Company’s operations. A summary of consolidated other income and results is set out below: 2023 $ 2022 $ Interest and other income 238,186 100,060 Profit/(loss) before income tax (1,880,048) (2,870,279) Income tax expense – – Profit/(loss) attributable to members of Sunstone Metals Limited (1,882,932) (2,866,269) Profit/(loss) attributable to non-controlling interests 2,884 (4,010) Earnings per share 2023 cents 2022 cents Basic earnings per share (0.1) (0.1) Financial Performance During the year ended 30 June 2023 the Group incurred a loss of $1,880,048 (2022: loss of $2,870,279). The significant reduction in the loss compared with prior year is largely due to non-cash share based payments expense for employee performance rights of $359,359 (2022: $938,806) and net fair value gain on financial assets at fair value through profit or loss of $487,967 (2022: loss of $359,378) for the equities Sunstone held in Copperstone Resources AB (“Copperstone”), United Lithium Corp and NewPeak Metals Ltd, while normal expenses are generally in line with prior year. Financial Position The Company’s non-current assets increased from $42,982,704 at 30 June 2022 to $69,375,409 at 30 June 2023, and the Company’s current assets decreased from $25,830,656 at 30 June 2022 to $10,675,454 at 30 June 2023 primarily due to expenditure incurred on the Bramaderos and El Palmar Projects in Ecuador. At the end of the financial period, the Group had cash balances of $10,306,546 (2022: $23,997,222) and net assets of $78,143,644 (2022: $66,369,314). Total liabilities amounted to $1,907,219 (2022: $2,444,046) and included trade, other payables, lease liabilities and provisions. During the year, the Company had an increase in contributed equity of $13,201,266, after fees, for the placement in May 2023 and vesting of employee performance rights. Directors’ Report continued 18 Sunstone Metals Limited Annual Report 2023
RkJQdWJsaXNoZXIy MjE2NDg3