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 2025, unless otherwise stated. Corporate information The consolidated financial report of Sunstone Metals Limited and its controlled entities for the year ended 30 June 2025 was authorised for issue in accordance with a resolution of the Directors on 12 September 2025. 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 Level 31, 120 Collins Street, Melbourne 3000. 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 $2,406,942 for the year ended 30 June 2025. As at 30 June 2025 the Group had net cash reserves of $2,674,579 and a net current asset surplus of $2,336,670. 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 2025, further exploration and drilling programs are planned on both the Bramaderos and El Palmar projects throughout the 2025 financial year, subject to funding. 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 2025 was $2,674,579; – To date the Group has funded its activities through issuance of equity securities and during the financial year ended 30 June 2025 successfully raised $10,635,000 before fees through placements to sophisticated investors and a share purchase plan (“SPP”). It is expected that the Group will be able to fund its future activities through further issuances of equity securities; – As part of the placement and SPP undertaken in September and October 2024, a total of 645,499,999 options were issued with an exercise price of $0.0075. As at the date of this report, a total of 307,792,800 options have been exercised, raising $2,308,446 (with $1,293,277 being received subsequent to 30 June 2025), leaving 337,707,199 options outstanding, with a value of $2,532,804 as at the date of this report. As these options are “in-the-money”, Directors believe there is a reasonable expectation that these options will continue to be exercised. – 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. Notes to the Financial Statements for the year ended 30 June 2025 45 Sunstone Metals Limited Annual Report 2025
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