Announcement PDF ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 31 December 2023 HALF YEAR FINANCIAL REPORT ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • www.alligatorenergy.com.au CONTENTS Page Directors’ Report 1 Auditor’s Independence Declaration 9 Consolidated Statement of Profit or Loss and Other Comprehensive Income 10 Consolidated Statement of Financial Position 11 Consolidated Statement of Changes in Equity 12 Consolidated Statement of Cash Flows 13 Notes to the Financial Statements 14 Directors’ Declaration 22 Independent Auditor’s Review Report to Members 23 Competent Person’s Statement 25 CORPORATE OFFICE Suite 2, 128 Bowen St Spring Hill, QLD 4000 Tel: (07) 3839 3904 Postal Address PO Box 338 Spring Hill, QLD 4004 The information in this report should be read in conjunction with the Annual Report for the year ended 30 June 2023 which is available from the Alligator Energy Limited website: www.alligatorenergy.com.au ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT The Directors of Alligator Energy Limited (the ‘Company’, ‘Alligator’, ‘AGE’) and its controlled entities (the ‘Group’) present their report, together with the financial statements of the Group, for the half-year ended 31 December 2023. Directors The following persons were Directors of Alligator Energy Limited (‘Alligator’) during the half-year and up to the date of this report, unless stated otherwise: Paul Dickson Fiona Nicholls Peter McIntyre Gregory Hall Callum McIntyre Non-Executive Chairman Non-Executive Director Non-Executive Director Managing Director & CEO Alternate Director for Peter McIntyre (appointed 1 August 2023) Principal activities The principal activities of the Group are uranium and other energy minerals exploration. There were no significant changes in the nature of the Group’s activities during the half-year. Dividends There were no dividends paid to shareholders during the half-year. Review of operations (i) Exploration and Evaluation activities Samphire Project, South Australia Mineral Resource Estimate Targeting In-Situ Recovery (ISR) In December 2023, Alligator upgraded the indicated category of its Mineral Resource Estimate (MRE) at the Blackbush Deposit by a further 21% to 12.9Mlbs at an average grade of 754ppm U3O8 – a 115% increase since commencement of AGE’s resource drilling at Blackbush in 2022. Overall, 74% of the Blackbush Mineral Resource is now classified as Indicated; a notable improvement from 40% in AGEs initial MRE targeting In-Situ Recovery announced September 2022. In summary at 250ppm cut-off grade the Blackbush resource now stands at Indicated Mineral Resource of 12.9Mlbs at 754ppm and an Inferred Mineral Resource of 4.6Mlbs at 447ppm, totalling 17.5Mlbs at 640ppm U3O8. As the 2023 infill drilling was focussed within the previous Blackbush MRE, the Inferred Mineral Resource, as expected, reduced by 2.9Mlbs (39%). ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 1 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Review of operations (cont.) Samphire Project, South Australia Mineral Resource Estimate Targeting In-Situ Recovery (ISR) JORC Category Mt Grade (U3O8 ppm) Indicated 7.8 754 12.9 Inferred 4.6 447 4.6 Total 12.4 640 17.5 U3O8 Metal (Mlbs) The model is reported unconstrained and above a 250 ppm U3O8 lower cut-off grade for all zones in consideration of potential for recovery by in situ leach processes. Estimation is by ordinary kriging for all mineralised zones. Density is assigned as 2.05 t/m3 based on limited test work. The model assumes agglomeration of 12.5mE x 12.5mN x [variable]mRL panels for definition of well fields for production. The model does not account for dilution, ore loss or recovery issues. These parameters should be considered during the mining study as being dependent on the treatment process. Classification is according to JORC Code Mineral Resource categories. Totals may vary due to rounded figures Table 1: Blackbush Mineral Resource Estimate reported above a 250ppm U3O8 cut-off. Updated Scoping Study In December 2023, Alligator also announced the results of an update to the initial Samphire Project Scoping Study (released 14 March 2023) which incorporated the increased confidence level in the Mineral Resource Estimate for the Blackbush Deposit and a consequent lift in the annualised Production Target from 1Mlbs pa to 1.2Mlbs pa. Key highlights from the updated study included: • • • • Updated Scoping Study delivers a 69% increase to the post-tax NPV8 to A$257M. Total uranium mining inventory at Samphire is 17.5 Mlbs U3O8, with 74% from the updated Indicated Resource category and an assumed recovery of 70%. LOM Production Target increased from 10.0 Mlbs U3O8 to 12.3 Mlbs over the same 12year period, with annual Production Target increasing 20% from 1.0Mlbs pa to 1.2Mlbs pa. Enhanced Project economics at a forecast US$75/lb U3O8 realised sales price (previously US$65/lb) and an unchanged A$:US$ exchange rate of 70 cents: Ungeared, real post-tax NPV8 of A$257M (A$244 M - A$270M) up from A$152M - Post-tax internal rate of return (IRR) of 42% (40.0% - 44.1%) up from 29% - Reduction in payback period by 30% to 2.45 years from start of production - Forecast net project cashflow (post Capex and tax) increase of 52% to A$467M (A$443M - A$490M). ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 2 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Review of operations (cont.) Updated Scoping Study (cont.) • • Low initial capital expenditure forecast of A$131M (A$124M-A$138M) being an increase of 2% to achieve the 20% step-up in the steady state annual Production Target - including consistent application of contingency (30%) and a 5% escalation assumption (down from 10% previously) due to improved ability to estimate costs. Favourable average cash operating costs (C1) of A$22.94/lb U3O8 (US$16.06/lb U3O8) with a range of A$21.79/lb - A$24.09/lb) and AISC (including transport, shipping, royalties and sustaining capital) of A$47.58/lb U3O8 (US$33.31/lb U3O8) with range of A$45.20/lb to A$49.96/lb when compared to other ISR operations and restart projects. The increased confidence in the uranium mining inventory (lift in Indicated category) and improved financial outcomes continue to highlight the opportunity for a competitive low-cost uranium operation at Samphire using the low environmental impact In-Situ Recovery (ISR) method. Samphire Project has similar AISC and C1 costs when compared to other ISR operations and restart projects as shown in the figure below. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 3 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Review of operations (cont.) Establishment of an Exploration Target Range In December 2023, the Company defined an Exploration Target Range (Range) for the Samphire Uranium Project. This Range was estimated to be 16Mt to 37Mt at a grade between 390ppm and 903ppm e U3O8 for a range of 14Mlbs to 75Mlbs of contained e U3O8 has been interpreted at 250ppm cut-off. The Range does not include the Blackbush Mineral Resource Estimate. Range includes extensions to mineralisation at Blackbush, the Plumbush prospect as well as other areas of known mineralisation and potential extensions. In preparing this estimate, Alligator conducted an extensive data review of over 1,000 historical and current drillholes and associated geological and geophysical datasets. The work identified 11 discrete palaeochannel areas, of which 5 were used in the above estimate. Only Kanaka Bed sands hosted areas amenable to In-Situ Recovery (ISR) were considered. With 64 kms of interpreted palaeochannel strike length, only 10% of the prospective system (Blackbush Deposit and portion of Plumbush Prospect) have been well explored, with a further 30% partly drill tested. To date, 58% (over 37 kms) of the prospective areas of the palaeochannel system remain completely untested, indicating the significant potential for new discoveries in the Project area. The Exploration Target range underpins a multi-year exploration program has kicked off in early February 2024 testing Blackbush Extension 1 & 2. Field Recovery Trial (FRT) In August 2023 Alligator submitted its Retention Lease Application (RLA) to the SA Department of Energy and Mining (DEM) to conduct a pilot ISR FRT. As part of the formal review and approval process, a public review and consultation period for this application concluded late September 2023 with formal feedback received from the DEM on 20 December 2023 regarding the public consultation and the various SA Government Department’s submissions on the application. Drafting of Alligator’s formal responses to the submissions was in progress at period end as the next step towards approval of the Lease. Fabrication of the containerised FRT plant by Adelaide Control Engineering (ACE) continued during the quarter and is nearing completion with the current status as follows: - Wellhouse module construction completed. Ion exchange (IX) columns were delivered on 15 December 2023, pipework and electrical fitting is in progress. Control system programming 70% complete. Preparatory work such as planning for on-site assembly, civil design and ordering of supporting infrastructure (e.g. tanks, wellfield lines, office, ablutions, generators etc) for the FRT is in progress. Transport of the pilot plant to AGE’s Whyalla storage facility will occur during March after initial wet commissioning and acceptance testing has been completed. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 4 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Review of operations (cont.) Alligator Rivers Province (ARUP) – TCC, Beatrice and Nabarlek North Projects The Nabarlek North exploration program for 2023 was completed during November 2023. This included 15 km2 of gradient IP, 3.4 km of dipole-dipole IP, over 320 air-core holes, 100 shallow auger holes and a 1,398 m RC drilling program. The RC drilling comprised 9 holes forming a three-fence program (3 holes per fence). This drilling provided critical ties with recently completed geophysics, 2022 – 2023 geochemistry sampling and geological interpretations. A significant uranium was intercepted was made in hole NNRC23-008 returning 3 m at 0.12% (1,211ppm) U3O8. This will form the basis of further investigations to understand the potential continuity of U40 prospect mineralisation (owned by DevEx Resources Ltd) into AGE’s Nabarlek North (NN) project and aid with broader target generation. Northern Territory DITT, Office of the Supervising Scientist and the Northen Land Council (NLC) undertook an audit of AGE’s NN exploration activities in early October 2023. Overall, findings were very positive towards our program execution, with only minor improvements suggested for the 2024 Mine Management Plan. A consultation meeting was held with Nabarlek North Traditional Owners and the NLC in midOctober to present 2024 work programs. Subject to standard site clearances, consent was provided for all 2024 proposed works. Big Lake Uranium (BLU), South Australia A formal clearance of proposed 2024 drill lines with eight members of the Yandruwandha Yawarrawarrka Traditional Landowners Aboriginal Corporation (YYTLOAC) was carried out in November 2023. Based on initial feedback, Traditional Owners have no significant cultural issues with the drilling proposals. Drilling is planned to commence in April/May 2024 with up to forty holes averaging 150 m length. As the maiden drilling program for uranium in this section of the basin, it is primarily designed as proof-of-concept test. Piedmont Project, northern Italy During the six months a re-interpretation of the 2022 EM identified targets was undertaken after considering newly acquired petrophysics (34 samples), petrology (9 samples), geological mapping and 2022-2023 rock geochemistry covering 52 elements. Consistent graphite shows near the remodelled La Balma EM target suggest a strong possibility of a non-sulphide source, whereas the Alpe Laghetto Mine upside potential does not appear to be fully delimited from current data. A decision was taken during the six-month period based on recent results not to proceed to drill at Alpe Laghetto and not to exercise the buyout option with CRP which fell due in August 2023. A more district-wide exploration program now appears to be the most appropriate next step, including shoring up district-wide drill targets for potential sale of the project. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 5 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Review of operations (cont.) Piedmont Project, northern Italy (cont.) AGE earned its 51% interest in the underlying Piedmont JV tenure during the six months. In conjunction with its joint venture partner, AGE has now applied for and received in-principle approval for an extension of the Alpe Laghetto beyond the December 2023 expiration. (ii) Financial The loss for the consolidated group for the half-year was $1,483,414 (Half-year to 31 December 2022: $1,255,203 loss). The loss for the period includes expensing of exploration and evaluation expenditure holding costs (due to limited exploration activity) at the Tin Camp Creek and Beatrice Projects of $45,214 (Half-year to 31 December 2022: $54,975). The significant increase in interest income during the period is as a result of an improved interest rate environment and higher average cash balances on hand. The Company’s overhead cost base has continued to grow during the six-month period to support both further evaluation of the Samphire Project technical and economic parameters and the increased levels of activity at both the Nabarlek North and Big Lake Projects. Full-time and part-time employees now number 32 (Half year to 31 December 2022: 15) increasing the level of employee benefit expense, including a senior addition to the Management Team with the appointment in March 2023 of an Exploration Manager. The growth in the employee benefit expenses has resulted in the Company breaching the payroll tax thresholds in South Australia, Queensland, Western Australia and Victoria with an expense for the six-month period of $88,880 (Half year to 31 December 2022: $47,500). The increase in senior staff recruits eligible for participation in the employee share option plan has been the principal driver for the increase in the share-based payment expense. During the second half of the 2023 financial year the Company renewed its premises lease for the Adelaide office for a three-year period with an option to extend for a further two years. A Right of Use Asset and Lease Liability was recognised for the first time for the period ended 30 June 2023 under Australian Accounting Standards. Consequently, the reduction in occupancy expenses during the current six-month period is offset with an increase in depreciation and interest costs. The increase in consultants and professional fees is attributable to legal fees associated with the EnviroCopper Limited investment, a share purchase plan offer and other advice. The Company continued its business development activities with the help of an external corporate advisor with the objective of pursuing further aligned uranium and energy mineral opportunities and projects in target regions. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 6 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) Financial (cont.) The Company undertook a share placement to institutional and sophisticated investors and the offer of a Share Purchase Plan (SPP) during the period and remains well funded for its proposed 2024 development and exploration work programs. The placement raised $25.5M and the SPP a further $3.26M both before offer costs that totalled $1.7M. In late November 2023, the Company issued 273,961,390 premium priced options under the terms of both the Placement and the SPP outlined above. The options are exercisable at $0.078 each at any time before 28 November 2025. AGE successfully applied for quotation of the Options with ASX which now trade under the code AGEOC. (iii) Environment, Social and Governance (ESG) Alligator is committed to sound ESG practices across all facets of its business and is continuing the process of establishing a framework and goals to support sustainable operating activities across its portfolio of development and exploration projects. The Company has recently implemented a new companywide Workplace Health and Safety, Environmental and Quality Management System which is now being embedded into ‘business as usual’ practices. (iv) Matters subsequent to the end of the half-year In January 2024 the Company advised that it completed its initial investment in EnviroCopper (~$0.9M for a 7.8% interest in ECL). Details on the key commercial terms set out in the Shareholders’ Agreement are set out in the ASX release dated 18 December 2023 – Alligator Invests into South Australian ISR Copper. AGE also advised that both resource extension and broader exploration drilling recommenced at the Samphire Uranium Project from the end of January 2024. No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect: a) The Group’s operations in future financial years, or b) The results of those operations in future financial years, or c) The Group’s state of affairs in future financial years. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 7 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 DIRECTORS’ REPORT (continued) (v) Auditor’s Independence Declaration The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 9. This report is made in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act 2001. Paul Dickson Chairman Brisbane, 7 March 2024 ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 8 www.alligatorenergy.com.au PKF Brisbane Audit ABN 33 873 151 348 Level 2, 66 Eagle Street Brisbane, QLD 4000 Australia +61 7 3839 9733 brisbane@pkf.com.au pkf.com.au AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF ALLIGATOR ENERGY LIMITED I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2023, there have been: (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (b) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Alligator Energy Limited and the entities it controlled during the half year. PKF BRISBANE AUDIT TIM FOLLETT PARTNER 7 MARCH 2024 BRISBANE PKF Brisbane Pty Ltd is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under Professional Standards Legislation. ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 31 December 2023 $ 31 December 2022 $ 374,591 - 62,983 30,000 (45,452) (81,602) (96,994) (676,150) (156,121) (41,242) (35,367) (124,411) (70,306) (49,682) (47,355) (119,560) (45,214) (284) (103,174) (8,436) (156,655) (24,653) (5,575) (96,687) (365,882) (75,321) (6,758) (73,386) (114,594) (79,998) (46,646) (51,801) (151,251) (54,975) (74,152) (126,508) (1,483,414) (1,483,414) (1,255,203) (1,255,203) - - Total comprehensive loss for the period (1,483,414) (1,255,203) Loss attributable to members of the parent entity (1,483,414) (1,255,203) Total comprehensive loss attributable to members of the parent entity (1,483,414) (1,255,203) Cents (0.04) (0.04) Cents (0.04) (0.04) Note Revenue Other income - interest Insurance claim proceeds Expenses Accounting and audit fees Consultants and professional fees Directors’ fees Employee benefits expense Share-based payments Depreciation Occupancy expenses Stock exchange and share registry fees Travel and accommodation expenses Insurance Investor relations Business development Exploration costs expensed Foreign exchange (loss)/gain IT costs incl licences Interest expense – ROU asset Other expenses Loss before income tax Income tax Loss for the period 6 Other comprehensive income Loss per share: Basic earnings/(loss) per share Diluted earnings/(loss) per share The accompanying notes form part of these financial statements. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 10 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets 31 December 2023 $ 30 June 2023 $ 36,531,547 722,793 6,417 37,260,757 18,498,329 659,517 11,943 19,169,789 475,688 2,147,285 272,457 29,111,712 32,007,142 440,538 430,286 305,151 23,778,563 24,954,538 Total Assets 69,267,899 44,124,327 LIABILITIES Current Liabilities Trade and other payables Lease liabilities Total Current Liabilities 1,437,136 60,682 1,497,818 2,001,441 58,971 2,060,412 216,727 375,086 591,813 247,502 375,085 622,587 Total Liabilities 2,089,630 2,682,999 Net Assets 67,178,268 41,441,328 99,709,034 133,042 (32,663,808) 72,515,301 175,697 (31,249,670) 67,178,268 41,441,328 Non-Current Assets Trade and other receivables Plant and equipment Right of use asset Exploration and evaluation expenditure Total Non-Current Assets 5 6 Non-Current Liabilities Lease liabilities Provisions Total Non-Current Liabilities EQUITY Contributed equity Reserves Accumulated losses 7 Total Equity The accompanying notes form part of these financial statements. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 11 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Balance at 1 July 2022 Total comprehensive loss for the period Contributed equity Options Reserve Accumulated Losses Total $ $ $ $ 72,303,961 141,294 (28,444,193) 44,001,062 - - (1,255,203) (1,255,203) 75,321 Transactions with owners in their capacity as owners: Share options – value of expense Options lapsed Issue of ordinary shares Capital raising costs - 75,321 (9,006) 9,006 126,989 - (126,989) - - - Balance at 31 December 2022 72,430,950 80,620 (29,690,390) 42,821,180 Balance at 1 July 2023 72,515,301 175,697 (31,249,670) (41,441,328) Total comprehensive loss for the period - - (1,483,414) (1,483,414) Transactions with owners in their capacity as owners: Share options – value of expense Options exercised/lapsed Issue of ordinary shares Capital raising costs 129,500 28,792,000 (1,727,767) 156,121 (198,776) 69,276 - - - 28,792,000 (1,727,767) Balance at 31 December 2023 99,709,034 133,042 (32,663,808) 67,178,268 - 156,121 The accompanying notes form part of these financial statements. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 12 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 31 December 2023 $ 31 December 2022 $ Interest received Payments to suppliers and employees 374,591 (1,538,237) 62,732 (1,139,949) Net cash outflow from operating activities (1,163,646) (1,077,217) Payments for exploration expenditure Payments for security deposits Payments for purchase of fixed assets Payments for capital works in progress (FRT) (6,337,981) (35,150) (122,203) (1,334,535) (3,101,066) (94,636) (186,069) - Net cash (outflow) from investing activities (7,829,869) (3,381,771) Proceeds on issue of shares Payment of capital raising costs Lease payments 28,792,000 (1,727,767) (37,500) - Net cash inflow from financing activities 27,064,232 - Net (decrease)/increase in cash held 18,033,218 (4,458,988) Cash and cash equivalents at the beginning of the financial period 18,498,329 27,127,889 Cash and cash equivalents at the end of financial period 36,531,547 22,668,901 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities The accompanying notes form part of these financial statements. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 13 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Note 1 General information and summary of significant accounting policies Basis of preparation of half-year financial statements These consolidated interim financial statements and notes represent those of Alligator Energy Limited (the Company) and Controlled Entities (the Group or Consolidated Entity). Alligator Energy Limited is a publicly listed company incorporated and domiciled in Australia. These general purpose interim financial statements for the half-year reporting period ended 31 December 2023 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements are presented in Australian dollars. This interim financial report is intended to provide users with an update on the latest annual financial statements of the Group. As such, it does not contain information, or all the notes of the type normally included in the annual financial report. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2023, together with any public announcements made during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules. These interim financial statements have been approved and authorised for issue by the Directors on the 7 March 2024. The interim financial report have been prepared on the basis of historical cost, except for the statement of cashflows. Cost is based on the fair values of consideration in exchange for assets. Significant accounting policies The same accounting policies and methods of computation have been followed in this half-year financial report as were applied in the most recent annual financial statements, except in relation to the matter discussed below. New and revised accounting requirements applicable to the current half-year reporting period The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. None of the new standards or amendments to standards that are mandatory for the first time materially affected any of the amounts recognised in the current period or any prior period. ACN 140 575 604 • PO Box 338, Spring Hill, QLD 4004 • +61 (0) 7 3839 3904 • info@alligatorenergy.com.au • Page 14 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Note 1 General information and summary of significant accounting policies (continued) Going Concern The financial statements have been prepared on a going concern basis that presumes the realisation of assets and the discharge of liabilities in the normal course of operations for the foreseeable future. During the six months ended 31 December 2023, the Group made an operating loss before tax of $1,483,414 (2022: $1,255,203). Cash outflows from operating and exploration-related investing activities during the same period were $9,031,015 (2022: $4,178,283). The Group’s ability to continue on a going concern basis is therefore dependent upon its ability to manage its current cash resources, raise additional capital through farm-out arrangements with strategic partners or share issues to existing shareholders