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 2024. Directors The following persons were Directors of Sunstone Metals Ltd any time during the financial year and up to the of this report: Mr Graham Ascough Non-executive Chair Mr Patrick Duffy CEO & Managing Director (appointed 15 April 2024) Non-Executive Director (appointed 8 November 2023 until 14 April 2024) Mr Malcolm Norris Executive Director – Exploration (appointed 15 April 2024) CEO & Managing Director (until 14 April 2024) Mr Stephen Stroud Non-Executive Director Mr Neal O’Connor Non-Executive Director (appointed 16 April 2024) 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 Group’s operations. A summary of consolidated other income and results is set out below: 2024 $ 2023 $ Interest and other income 125,798 238,186 Profit/(loss) before income tax (2,293,242) (1,880,048) Income tax expense – – Profit/(loss) attributable to members of Sunstone Metals Limited (2,293,242) (1,882,932) Profit/(loss) attributable to non-controlling interests – 2,884 Earnings per share 2024 cents 2023 cents Basic earnings per share (0.1) (0.1) Financial Performance During the year ended 30 June 2024 the Group incurred a loss of $2,293,242 (2023: loss of $1,880,048). The increase in the loss compared with prior year is largely due to a loss of $167,916 on the revaluation of shares in NewPeak Metals Ltd and United Lithium Corp (2023: gain of 487,967). Interest income also declined, with $125,798 earned in the current year (2023: $238,186), with the reduction attributable to lower cash balances held during the year compared with prior year. Employee benefits expense reduced to $1,380.280 (2023: $1,852,515) largely due to a reduction in the non-cash share based payments expense for employee performance rights to $169,160 (2023: $359,359). Financial Position The Group’s non-current assets increased from $69,375,409 at 30 June 2023 to $82,866,040 at 30 June 2024, and the Group’s current assets decreased from $10,675,454 at 30 June 2023 to $3,121,402 at 30 June 2024 primarily due to the reduction in cash and cash equivalents associated with expenditure incurred on the Bramaderos and El Palmar Projects in Ecuador. At the end of the financial period, the Group had cash balances of $2,669,044 (2023: $10,306,546) and net assets of $83,915,712 (2023: $78,143,644). Total liabilities amounted to $2,071,730 (2023: $1,907,219) and included trade, other payables, lease liabilities and provisions. During the year, the Group had an increase in contributed equity of $8,281,677, after fees, for the placements in December 2023 and May 2024. Directors’ Report 18 Sunstone Metals Limited Annual Report 2024
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