Note 1. Summary of Material Accounting Policies The material accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied for the financial year to 30 June 2024, unless otherwise stated. Corporate information The consolidated financial report of Sunstone Metals Limited and its controlled entities for the year ended 30 June 2024 was authorised for issue in accordance with a resolution of the Directors on 13 September 2024. Sunstone Metals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. Its registered office and principal place of business is 9 Gardner Close, Milton QLD 4064. The Group is a for-profit entity. A description of the nature of the Group’s operations and its principal activities is included in the Directors’ report. (a) Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The presentation currency is Australian dollars. The report has been prepared on the basis of the going concern and historical cost conventions. Going concern The Group incurred a loss of $2,293,242 for the year ended 30 June 2024. As at 30 June 2024 the Group had net cash reserves of $2,669,044 and a net current asset surplus of $1,216,526. The ability of the Group to continue as a going concern is principally dependent upon one or more of the following: – the ability of the company to raise additional capital in the future; and – the successful exploration and subsequent exploitation of the Group’s tenements. While the Group has a moderate cash position at 30 June 2024, a drilling program at the Limon deposit commenced in June 2024 and completed in July 2024. Continuing exploration and drilling programs are planned for Limon and the broader porphyry opportunities at Bramaderos, as well as the El Palmar and Verde Chico projects throughout the 2025 financial year. These conditions give rise to a material uncertainty which may cast significant doubt over the Group’s ability to continue as a going concern. The directors believe that the going concern basis of preparation is appropriate due to the following reasons: – The cash balance of the Group as at 30 June 2024 was $2,669,044; – To date the Group has funded its activities through issuance of equity securities and during the financial year ended 30 June 2024 successfully raised $8,737,776 before fees through a placements to sophisticated investors and a non-renounceable rights issue. It is expected that the Group will be able to fund its future activities through further issuances of equity securities; – On 9 September 2024, the Group announced a capital raise of $2,500,000 before fees through a placement of shares to sophisticated investors. The Group received $2,232,500 (net of broker fees) on 13 September 2024. $130,000 relating to Director participation will be received following the AGM in October 2024 (subject to shareholder approval). On 9 September 2024, the Group also announced a share purchase plan to raise a further $2,000,000; – The directors believe there is sufficient cash available for the Group to continue operating until it can raise sufficient further capital to fund its ongoing activities. Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. (b) Statement of compliance The financial report complies with Australian Accounting Standards and consequently with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. (c) Basis of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Sunstone Metals Limited (“Company”, “Sunstone” or “Parent Entity”) as at 30 June 2024 and the results of all the subsidiaries for the financial period then ended. The Company and its subsidiaries together are referred to in this financial report as the Group or Consolidated Entity. Notes to the Financial Statements for the year ended 30 June 2024 39 Sunstone Metals Limited Annual Report 2024
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