Announcement PDF ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 31 December 2024 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 7 Consolidated Statement of Profit or Loss and Other Comprehensive Income 8 Consolidated Statement of Financial Position 9 Consolidated Statement of Changes in Equity 10 Consolidated Statement of Cash Flows 11 Notes to the Financial Statements 12 Directors’ Declaration 19 Independent Auditor’s Review Report to Members 20 Competent Person’s Statement 22 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 2024 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 2024. 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 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 Drilling at Blackbush Drilling activities for the six month period focused south of Blackbush West and Area 51 (west of Blackbush West) within the indicated resource envelope to convert additional resource to the Indicated category in preparation for updated Blackbush resource targeted for early 2025. Key outcomes for the period were released to the market in late November 2024 and included: - Uranium mineralisation extended by a cumulative 500m of strike length outside the known Blackbush West Mineral Resource Envelope. - Significant uranium intersections encountered in roll fronts focusing on the western and southern areas of Blackbush west. o A total of 61 holes drilled for 5,158m from mid-July to mid November 2024. o Results align with the strategy outlined in Alligator’s Exploration Target Range. - Continued refinement in understanding of the Blackbush West uranium roll fronts has delivered further targets outside of the Inferred mineral resource. 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 (cont.) - Significant uranium mineralisation intersections included: o o o o o o o o o BBRM24-304 BBRM24-278 BBRM24-338 BBRM24-321 BBRM24-282 BBRM24-283 BBRM24-318 BBRM24-330 BBRM24-314 1.3 metres at 1.94% (19,391ppm) pU3O81 from 62.6m (GT 25,208)2 1.1 metres at 0.44% (4,392ppm) pU3O8 from 62.94m (GT 4,832) 2.4 metres at 0.20% (1,948ppm) pU3O8 from 56.7m (GT 4,675) 1.1 metres at 0.36% (3,633ppm) pU3O8 from 58.59m (GT 3,996) 1.7 metres at 0.23% (2,314ppm) pU3O8 from 63.1m (GT 3,934) 0.8 metres at 0.45% (4,506ppm) pU3O8 from 65.03m (GT 3,604) 0.7 metres at 0.36% (3,566ppm) pU3O8 from 59.1m (GT 2,497) 0.8 metres at 0.18% (1,791ppm) pU3O8 from 63.1m (GT 1,433) 0.6 metres at 0.17% (1,734ppm) pU3O8 from 59.14m (GT 1,040) An update of the JORC Mineral Resource Estimate, inclusive of all drill results for 2024 will be completed late in Q1, 2025. Field Recovery Trial (FRT) In late December 2024, the Company received the draft Retention Lease (RL) tenement documents from the SA Department for Energy and Mining (DEM) including the proposed Conditions of operation with which the Company must comply while operating the FRT. Alligator reviewed the Conditions and after clarification of some points, accepted the Conditions on 30 December 2024. The Company received confirmation from the DEM of the grant of a RL for the conduct of the FRT, on 13 January 2025. The associated Conditions are now being factored into the Program for Environment Protection and Rehabilitation (PEPR) which forms the operating plan for the FRT. The PEPR is targeted for submission in February 2025 and will likely take some months to be approved. Approval of the PEPR will represent the final step in the regulatory process, allowing commencement of on-site construction of the FRT infrastructure. Contractual arrangement negotiations commenced with a preferred Whyalla based contractor for the FRT civil works and construction based on a detailed scope of work, a targeted schedule and definitive cost estimate. 1 Note: pU O 3 8 denotes that the grade has been determined by Prompt Fission Neutron downhole logging 2 GT= grade(ppm) x thickness(m) – divide by 10,000 for m% GT 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.) Alligator Rivers Province (ARUP) – TCC, Beatrice and Nabarlek North Projects The new high resolution airborne magnetic and radiometric survey acquired earlier in 2024 was supplemented with a third-party (Southern Geoscience Consultants) interpretation to assist with planning follow-up drill programs in 2025. The 2024 drilling program was completed in September, having drilled a total of 3,526 m of reverse circulation in 22 holes in just two weeks. The program included 8 holes averaging 180 m depth to test for northerly extensions of the U40 prospect, along with step-out drilling from AGE’s uranium intercept reported in the previous financial year. A total of 504 downhole samples were taken for geochemical analysis across varying geological, alteration and potentially mineralised zones. The results from the assays of all samples are anticipated early in 2025 and will inform planning workshops and future targeting. In addition to downhole sampling, 236 surface samples were taken across the Nabarlek North project forming broad traverses designed to aid with geological interpretations and identify the most prospective geological domains with the project. At the Company’s Tin Camp Creek Project hosting the historic Caramal resource, 88 surface samples were taken across historic and new prospects in conjunction with environmental access assessments which will inform the Company’s 2025 program generation for the project. The data and results for two co-funding grants received from the NT Government were submitted towards the end of the half-year. These grants contributed to the funding of 2024 airborne geophysics and greenfields exploration RC drilling. Claimable co-funding expenditure has been confirmed with the Company receiving in excess of $175k in grants for the period. Big Lake Uranium (BLU), South Australia The inaugural drilling program at Big Lake was completed during the period with 27 holes for a combined total of 3,413 m. Fences of holes were strategically placed centred on five areas to calibrate seismic/AEM interpretations and provide confirmation of key elements to demonstrate a fertile basin uranium roll-front mineralisation model. Drilling at Site 10 on the key tenement, EL6367, returned significant thicknesses of paleochannel sands and elevated uranium values, and these have now been confirmed by assay. Four holes recorded uranium values at over 100 ppm, including two intersections within porous sands of greater than 20 m thickness A heritage clearance was undertaken in late October with the Yandruwandha Yawarrawarrka Traditional Land Owners Aboriginal Corporation for additional site clearances for a 2025 drilling program planned for mobilisation in late February 2025. 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.) Piedmont Project, northern Italy Tenement applications approved - Castello di Gavala, Sella Bassa and Valmaggia applications covering a total area of 5,405 hectares were approved and the licences issued during the period. The applications were resubmitted during 2024 with refined boundaries targeting the key lower mantle geological settings hosting Ni, Cu, Au and Pt-Pd occurrences. At the time of assessing data for the resubmission of the applications, the presence of carbonatites within the sequence was identified providing the opportunity to also investigate the potential for REE occurrences. A small stream sampling program was undertaken at the Laghetto and Sella Bassa licences proximal to the Gula Prospect. The objective of this program was to follow up on the exceptional Au grab samples results (up to 60.8g/t – ASX Announcement- 14 September 2018) and historic stream sampling to investigate the extent of the Au anomalism. A total of 5 samples were collected spanning approximately 2km of river system. Bulk samples were split into 3 fractions for each site giving a total of 15 samples now submitted to ALS Ireland for geochemical analysis. Assaying will cover a suite of elements including Au, Ni and REEs. Marketing the opportunity to acquire the Project to interested parties will resume once the assay results for the recent sampling program are returned and the Project Information Memorandum updated. Investment in EnviroCopper Limited (ECL) – Cu ISR The Company continues to plan for a Site Environmental Lixiviant Test (SELT) Circulation Trial (copper extraction) whilst awaiting the regulatory approval in the form of a Program for Environment Protection and Rehabilitation (PEPR). Three rotary mud drillholes were completed at ECL’s Alford West Project to determine hydrological characteristics and to test weathered structurally controlled mineralisation for in-situ recovery amenability A Deed of Variation to the EnviroCopper Limited (ECL) Shareholders’ Agreement was finalised during the period involving completion of the originally envisaged Stage 1 investment (see ASX Announcement 18 December 2023) in that company. The subscription arrangements were completed post period end with Alligator now holding a 15.61% interest and appointing Greg Hall to the Board of ECL (ii) Financial The loss for the consolidated group for the half-year was $1,471,177 (Half-year to 31 December 2023: $1,483,414 loss). The loss for the period includes expensing of ground reconnaissance 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) Financial (cont.) related expenditures and holding costs for the Tin Camp Creek and Beatrice Projects of $150,940 (Half-year to 31 December 2023: $45,214). Employee benefit costs for the period were $796,692 (Half year to 31 December 2023: $676,150). The increase from the prior period relates primarily to additional corporate focused activities by exploration staff and a senior staff member redundancy. Share based payments for the period were $211,301 (Half year to 31 December 2023: $156,121). The increase was a result of a larger number of staff being eligible for the Employee Share Scheme and the inclusion of share options in the remuneration arrangements for NonExecutive Directors (approved at the 2024 AGM). Business development costs for the period were $184,739 (Half year to 31 December 2023: $119,560). The increase relates to a success fee payable for the EnviroCopper Limited transaction. 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. (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 companywide Workplace Health and Safety, Environmental and Quality Management System which is being embedded into ‘business as usual’ practices. (iv) Matters subsequent to the end of the half-year After period end the Company subscribed for 321,405 shares in EnviroCopper Limited (ECL) for a consideration of $871,007. Alligator now holds a 15.61% interest in ECL. The Company has appointed Greg Hall as its representative to the Board of ECL. In January 2025 the Company received confirmation from the Department for Energy and Mining (DEM) of the grant of a Retention Lease (RL) for the conduct of the FRT, incorporating a trial wellfield and pilot uranium extraction plant. The conditions attaching to the RL will be factored into the Program for Environment Protection and Rehabilitation (PEPR) which forms the operating plan for the FRT. The PEPR is targeted for submission by Alligator in late February 2025. Approval of the PEPR represents the final step in the DEM regulatory process, and with an EPA site permit process underway, these will allow the commencement of on-site construction of the FRT infrastructure. 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) On 27 February 2025, the Company advised that a follow-up drill program at the Big Lake Uranium Project (Big Lake) in the Lake Eyre Basin, South Australia was underway following the initial discovery success in 2024. On 3 March 2025, the Company advised that the Program for Environment Protection and Rehabilitation (PEPR) for conducting the in-situ Field Recovery Trial (FRT) at the Samphire Uranium Project, near Whyalla, South Australia had been submitted and is now in the assessment phase. No other matter or circumstance has arisen since 31 December 2024 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. (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 7. 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, 13 March 2025 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 PKF Brisbane Audit ABN 33 873 151 348 Level 6, 10 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 2024, 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 13 MARCH 2025 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. 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 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2024 31 December 2024 $ 31 December 2023 $ 736,556 - 374,591 - (66,422) (15,043) (102,415) (796,692) (211,301) (42,440) (39,870) (149,951) (76,446) (61,800) (40,481) (184,739) (150,940) (75,554) (6,726) (186,915) (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) (1,471,177) (1,471,177) (1,483,414) (1,483,414) - - Total comprehensive loss for the period (1,471,177) (1,483,414) Loss attributable to members of the parent entity (1,471,177) (1,483,414) Total comprehensive loss attributable to members of the parent entity (1,471,177) (1,483,414) Cents (0.038) (0.038) 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 8 www.alligatorenergy.com.au ALLIGATOR ENERGY LIMITED AND CONTROLLED ENTITIES ACN 140 575 604 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets 31 December 2024 $ 30 June 2024 $ 20,252,739 846,248 3,536 21,102,523 28,392,442 852,721 33,293 29,278,456 706,237 3,840,669 206,799 1,163,993 40,035,716 45,953,414 520,688 3,480,720 239,493 935,000 33,682,236 38,858,137 Total Assets 67,055,937 68,136,593 LIABILITIES Current Liabilities Trade and other payables Lease liabilities Total Current Liabilities 1,648,185 62,442 1,710,627 1,627,380 62,441 1,689,821 154,287 597,770 752,057 185,061 408,585 593,646 Total Liabilities 2,462,684 2,283,467 Net Assets 64,593,253 65,853,126 100,275,097 256,074 (35,937,917) 100,123,598 324,882 (34,595,354) 64,593,253 65,853,126 Non-Current Assets Trade and other receivables Plant and equipment Right of use asset Financial assets 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 9 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 2024 Balance at 1 July 2023 Total comprehensive loss for the period Contributed equity Options Reserve Accumulated Losses Total $ $ $ $ 72,515,301 175,697 (31,249,670) 41,441,328 - - (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 129,500 156,121 (198,776) 69,276 156,121 - 28,792,000 (1,727,767) - - 28,792,000(1,727,767) Balance at 31 December 2023 99,709,034 133,042 (32,663,808) 67,178,268 Balance at 1 July 2024 100,123,598 324,882 (34,595,353) (65,853,127) - - (1,471,177) (1,471,177) 151,499 211,301 (280,109) 128,610 - - - - () 100,275,097 256,074 (35,937,917) 64,593,253 Total comprehensive loss for the period Transactions with owners in their capacity as owners: Share options – value of expense Options exercised/lapsed Issue of ordinary shares Capital raising costs Balance at 31 December 2024 211,301 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 CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024 31 December 2024 $ 31 December 2023 $ Interest received Payments to suppliers and employees 736,557 (1,738,141) 374,591 (1,538,237) Net cash outflow from operating activities (1,001,584) (1,163,646) Payments for exploration expenditure Receipts from Govt Grants for exploration Payments for security deposits Payments for purchase of fixed assets Payments for capital works in progress (FRT) Investment in EnviroCopper Ltd (6,331,068) 72,540 (185,545) (133,136) (294,421) (228,993) (6,337,981) (35,150) (122,203) (1,334,535) - Net cash (outflow) from investing activities (7,100,623) (7,829,869) Proceeds on issue of shares Payment of capital raising costs Lease payments (37,496) 28,792,000 (1,727,767) (37,500) Net cash inflow from financing activities (37,496) 27,064,232 Net (decrease)/increase in cash held (8,139,703) 18,033,218 Cash and cash equivalents at the beginning of the financial period 28,392,443 18,498,329 Cash and cash equivalents at the end of financial period 20,252,740 36,531,547 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 11 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 2024 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 2024 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 2024, 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 13 March 2025 2025. 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 12 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 2024 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 2024, the Group made an operating loss before tax of $1,471,177 (2023: $1,483,414). Cash outflows from operating and exploration-related investing activities during the same period were $7,332,652 (2023: $8,836,162). 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 or new investors. The Directors are confident of being able to manage the current cash resources and expenditure commitments as appropriate and to continue to secure additional funding requirements as necessary. On this basis they believe the Group is a going concern and will be able to pay its debts as and when they fall due and payable. Note 2 Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. Critical judgements in applying the entity’s accounting policies The Group has capitalised exploration expenditure of $40,035,716 (30 June 2024: $33,682,236). This amount includes costs directly associated with exploration and the purchase of interests in exploration titles. These costs are capitalised as an intangible asset until assessment and/or drilling of the permit is complete and the results have been evaluated. These direct costs include employee remuneration, materials, rentals, camp costs and payments to contractors for services such as drilling and geotech surveys. The expenditure is carried forward until such a time as the area moves into the development phase, is abandoned or sold. Given exploration activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of recoverable resources and the difficulty in forecasting cash flows to assess the fair value of exploration expenditure, there is uncertainty as to the carrying value of exploration expenditure. The ultimate recovery of the carrying value of exploration expenditure is dependent upon the successful development and commercial exploitation or, alternatively, sale of the interest in the tenements. The Directors are of the opinion that the exploration expenditure is recoverable for the amount stated in the financial report. Provision for site restoration The Group estimates the cost of rehabilitating disturbances as a result of exploration activity. These estimates are based on the requirements of current legislation, comprise an estimate of the external costs to rehabilitate and are consistent with the amounts reported to the Department of Tourism, Industry and Trade in the Northern Territory and the Department of Energy and Minerals in South Australia. 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 2024 Note 3 Segment information Operating segments are identified, and segment information disclosed, on the basis of internal reports that are regularly provided to, or reviewed by, the Group’s chief operating decision maker which, for the Group, is the Board of Directors. In this regard, the Board of Directors confirms that the Group continues to operate in on