Announcement PDF Manuka Resources Ltd ABN 80 611 963 225 HALF YEAR REPORT 2023 31 December 2023 Interim Financial Report For the 6-month period ended 31 December 2023 Manuka Resources Ltd and its controlled entity ABN 80 611 963 225 Manuka Resources Ltd For the half-year ended 31 December 2023 i CORPORATE DIRECTORY Directors Dennis Karp – Executive Chairman Alan J Eggers – Executive Director Anthony McPaul – Non-Executive Director John Seton – Non-Executive Director Key Management Haydn Lynch – Chief Operating Officer Company Secretary Toni Gilholme Registered Office Level 4, Grafton Bond Building 201 Kent Street Sydney NSW 2000 www.manukaresources.com.au Lawyers K&L Gates Level 31, 1 O’Connell Street Sydney NSW 2000 Auditor Ernst & Young 200 George Street Sydney NSW 2000 Share Registry Automic Group Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 Stock Exchange Listing Manuka Resources Limited shares (Code: MKR) are listed on the Australian Securities Exchange. Manuka Resources Ltd For the half-year ended 31 December 2023 ii Contents Page Directors’ Report 3 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 13 Consolidated Statement of Cash Flows 14 Notes to the Financial Statements 15 Directors’ Declaration 33 Independent Auditor’s Report 34 Manuka Resources Ltd For the half-year ended 31 December 2023 3 Directors’ Report The Directors of Manuka Resources Ltd (‘Manuka Resources’) present their report together with the financial statements of the Entity or the Group, being Manuka Resources (‘the Company’) and its subsidiaries Mt Boppy Resources Pty Ltd (‘Mt Boppy’) and Trans-Tasman Resources Ltd (TTR) for the six months ended 31 December 2023. Director details The following persons were Directors of Manuka Resources during or since the end of the financial period and up to the date of this report: • • • • Mr Dennis Karp Mr Anthony McPaul Mr John Seton Mr Alan J Eggers Review of operations and financial results The past six months of operations focused on the recommencement of gold production operations at Mt Boppy. There is a combined total of almost 4.0Mt of waste material and tailings sitting adjacent to the existing Mt Boppy pit, and following an in-depth geological review, it was determined that the residual quantity of gold contained within the material could be screened and then economically recovered though the Company’s 100% owned Wonawinta plant. As advised previously, Manuka Resources welcomed Phil Bentley into the position of Chief Geologist a little over 12 months ago. It is noteworthy that a significant portion of Phil’s career was based mining in Southern Africa, focussed on low grade gold recoveries from waste dumps. This input was extremely valuable in assisting the Company bring its Mt Boppy Screening Project into production over the second half of calendar 2023. The initial production results were positive and we enjoyed increasing recoveries and sales over each of the months comprising the September 2023 Quarter. The December Quarter was disappointing, albeit that quarterly sales were higher than those in the previous Quarter. However, we weren’t able to maintain the positive increases in production seen over the initial three months, largely due to a tapering off of the grades of the ore processed, which was first noted during November. This proved to be extremely frustrating for all concerned, as the Company’s preparation prior to commencement of mining was comprehensive. In light of the reduced grades, we commenced a sonic drill program during the second half of November, to more fully understand the zonal make-up of the dump and the extent and locations of the mineralised material throughout the full waste dump and tailings. While our receipt of assays from the sonic drill samples submitted to an independent laboratory have been delayed due to external operational matters outside our control, we do expect full receipt by the middle of March. This will provide us with the opportunity to revise our mine plan and determine optimal processing and recovery zones. This will be completed by Manuka Resources as a priority. On-site processing and production has been suspended until receipt of the full suite of assay results and revision of the mine plan. On 7 March 2024, the recently elected NZ government introduced Fast Track Consenting (FTC) legislation into parliament. This is discussed more fully below, but clearly any legislation which assists the final completion of permitting for our Trans-Tasman Resources’ (TTR) Taranaki project would be extremely beneficial to Manuka Resources and its shareholders. Manuka Resources Ltd For the half-year ended 31 December 2023 4 Taranaki VTM Project In a significant and highly positive turn of events, the election of the new coalition government in New Zealand, led by the National party and new PM Christopher Luxon, has dramatically altered the political landscape for the country’s resource sector. The Government’s initiatives in their coalition agreements include a ‘100 Day Plan’: • • • • • • Updating the Crown Minerals Act to promote the use of Crown Minerals; Creating a Critical Minerals list likely to include vanadium and titanium; Prioritising regional and national projects of significance; Amending the Resource Management Act (RMA); A ‘fast track’ one stop shop consenting and permitting process for natural resource projects of national significance; and Investigate the strategic opportunities in New Zealand’s mineral resources, including vanadium, and develop a plan to develop these opportunities. The newly appointed Minister for Resources, Hon Shane Jones, is strongly supportive of the country’s mining industry, in particular the development of offshore titanomagnetite iron sand and vanadium resources in the South Taranaki Bight. Minister Jones stated1 “Seabed mining has a legitimate place in New Zealand’s regional economy.” and “Unless we use our natural resources of our country, unless we maintain investment in our natural resource sector we won’t get the rare earth minerals that are in New Zealand, we won’t keep the young people who are desperate to improve the quality of their life in New Zealand – they’ll go to Australia to dig up Kalgoorlie and that’s something grossly hypocritical about the green movement.2” Manuka’s wholly owned subsidiary, Trans-Tasman Resources Limited (TTR), was granted Mineral Mining Permit MMP55581 located 22km to 36km offshore in New Zealand’s South Taranaki Bight (STB) in 2014. Expert reports have concluded the proposed VTM mineral recovery in STB will avoid material harm, will favour caution and environmental protection in relation to the effects of the proposed mining operations and resulting sedimentation on biota in the STB including no adverse ecological effects on marine mammals and seabirds. Accordingly, there are no known aspects of TTR’s 2017 environmental Consents that are an impediment to having them re-approved. TTR intends to commission additional metallurgical test work to optimise the flowsheet for processing of the VTM concentrate (including the recovery of vanadium and titanium) during 2024 and undertake marketing (and related) studies building on work completed during the Pre-Feasibility Study (PFS). The key attributes of the VTM Project are as follows:3 • • • • • A 914Mt JORC Resource in MMP55581 Mine Area Minimum 20 year Life of Mine C1 costs approximately US$20 - US$24 / tonne of concentrate VTM Concentrate Grade 0.5%V205, 8.5%Ti02 and 55% - 57%Fe Total 3.2Bt STB JORC Resource Base 1 https://realitycheck.radio/shane-jones-nz-first-cabinet-minister-a-coalition-update-and-the-recent-policy-gains-for-nz-first/ 2 Ibid 3 ASX release 1 August 2022 Manuka Resources Ltd For the half-year ended 31 December 2023 • 5 60-year resource at 5Mtpa production rate Globally VTM titanomagnetite iron sands are in strong demand as feed for electric arc furnaces (EAF) to produce low carbon “green steel”. EAF steel making burns 50% less coal, reduces emissions by more than 45% in the steel making process and sets the platform for meeting net zero goals by 2050. The extraction and recovery of iron ore concentrate from the STB’s iron sand deposits will be one of the lowest CO2 emitters for iron ore producers globally. Taranaki VTM will produce an estimated 62kg/t CO2 of emissions compared to the international average of 125 to 250kg/t of concentrate. Iron ore is critical to the clean energy transition, because steel is required in large quantities to build the wind turbines and new transmission infrastructure the transition requires. Vanadium, apart from its widespread application as a steel alloying element to strengthen steel and reinforcing bar, is rapidly building demand as an electrolyte in vanadium redox flow batteries (VRFB) which are fast becoming the preferred IP for large grid-scale high-capacity battery stations to store renewable energy due to their longevity and fire safety characteristics, ahead of all competing technologies. Australia is now building its first 850Mw, with 1,680Mwh capacity, VRFB Waratah Super Battery at the former Munmorah coal fired power station in NSW to drive Australia’s transition to a low carbon economy. With concerns over the sovereign security of vanadium supply from key producing nations China (comprising 55% of global production), Russia (20% of global production), Brazil (15%) and South Africa (10%), vanadium now has “critical mineral” status in Australia, USA, Canada and the EU. The demand for VTM concentrate for EAF low carbon green steel production together with the rapidly growing demand underpinning rising prices for vanadium, suggests the potential of our Taranaki VTM Project, hosting one of the largest known vanadium resources in the world with 1.6Mt contained V2O5 metal, will attract the competitive capital investment and metal producer offtake interest required to develop the project. The Taranaki VTM Project, when in production with an estimated annual production of 10,000 tonnes of vanadium metal, will make Manuka one of the leading vanadium producers in the world and propel NZ into the third largest producer of the metal after China and Russia. Operating Summary The loss for the consolidated entity for the half-year ended 31 December 2023 was $8,565,882 (2022 Loss: $13,246,268). As at 31 December 2023, the consolidated entity had $551,195 in cash. The Company produced 4,332 ounces of Au during the half-year and sold at an average unhedged price of $AU3,006/oz. Production summary Tonnes Milled Gold in Circuit Silver Sold Gold Sold Gold Recoveries Revenues t oz oz oz % AUD$’000 31 Dec 2023 136,728 316 23,900 4,625 70.1 % 14,458 Resource Growth and Exploration Outlook During the period under review the Company’s geological team has continued to implement in part the exploration work programmes established from the Q1 2023 Strategic Review. Planned drilling of Pipeline Manuka Resources Ltd For the half-year ended 31 December 2023 6 Ridge and Mt Boppy deeps was deferred to H1 2024. A sonic drilling program was completed on the Mt Boppy waste dump, results from which will progress establishing the viability of future processing. The MKR Resource Triangle (Fig. 1) shows the current classification of the exploration targets, and those in highlighted on which work was undertaken during Q3 and Q4 2023. Figure 1 The resource base at Mt Boppy outside of the in-pit resources continues to expand. The Mt Boppy waste dump is estimated to contain approximately 3.92 Mt of variably mineralised waste rock and old tailings material. Of this, between 1.6-1.9Mt is targeted as a screened product. A Sonic drilling programme was completed on the Main Waste dump during December 2023 and results are still coming to hand and will be reported next quarter. Twenty-six boreholes totalling 503m were drilled, and the whole core recovered screened to -10, +10-22, and +22mm fractions, and fire assayed and bottle rolled to provide insitu and recoverable gold grade estimates. The drilling programme will underpin the assessment of the economic viability of the Main waste dump and the TSF3 tailings repository. Material has also been specifically sampled for future metallurgical testwork. Bulk sampling of the McKinnons low grade rock dumps has continued intermittently during the period under review and are planned to be completed during the March 2024 quarter. Other work programmes that have been progressed include: • Continued geological modelling and assessment of historic drilling data of the Pipeline Ridge base metal – gold deposit, assessment of available diamond core. The initial drilling programme is now scheduled during calendar H1 2024; • Follow up examination of targets generated from a detailed regional geophysics synthesis of the Mt Boppy and Wonawinta ML’s and exploration tenements, including conducting a merged data reinterpretation of all available magnetic data and a revised IP interpretation for the McKinnons gold prospect; and • Continued analysis and reorganisation of the Company’s extensive drilling and geochemical sampling database. Drill programmes for 2024 have been scoped in-line with prioritisation of the targets on Figure 1 with encouraging engagement with local drilling contractors for these activities. Exploration of the Pipeline Ridge prospect and Mt Boppy mine deeps drilling are priority targets, and these activities are expected to start during Calendar H1 2024. Manuka Resources Ltd For the half-year ended 31 December 2023 7 Significant changes in state of affairs During the half-year there have been no significant changes in the state of affairs of the Group, but the following events are noteworthy: • Further Extension of Secured Debt Facility Since the end of the reporting period, the Company successfully negotiated to extend the term of the secured debt facility to 30 September 2024. The extension has been granted on existing terms and rates with no extension penalties or cash fees. The Company has resolved at a Board meeting held 19 September 2023 to grant the issue of 25Million options in four tranches with an exercise price based on the 5-day VWAP plus a 10% premium. • Mt Boppy Resource Update4 The Company released a Mt Boppy Gold Project Resource Upgrade showing a 357% increase in contained ounces. The mineral resource estimate for Mt Boppy is contained within: - in situ rock dumps and tailings depositories, with in situ gold grades derived from bulk sampling material derived from mechanically pitting and trenching to 2-3m depth and screening +200, 200+20, +8-20, and -8mm size fractions, with cone measurements to ascertain mass % distribution and total volume treated. - an open cut pit shell that reaches a depth of 215m below surface at the southern end of the Mt Boppy deposit. Resources were reported July 2022 with respect to the current pit design. Material within the pit design is reported at a 1.6 g/t Au cut off and material below the pit design is reported to a 3.0 g/t Au cut off. The open cut is currently flooded and inaccessible for mining. Dewatering and a sidewall pushback is necessary to access and mine these resources. - a grade shell modelled at a 1.6 g/t cut off over the Boppy South mineral zone. This prospect still requires final drilling and evaluation before assessing establishing a small opencast. Resource Category Tonnes Grade Contained gold g/t Au Troy ounces Measured 107 5.25 18.0 Indicated 605 3.01 58.5 Inferred 1,770 1.47 83.6 Total 2,482 2.01 160.1 Table 6: Mt Boppy Resource Update per ASX release 25 August 2023 *The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. Due to rounding to appropriate significant figures, minor discrepancies may occur. All tonnages reported are dry metric. • Completion of Sonic Drill Program A Sonic drilling programme was completed on the Main Waste dump during December 2023 and results are still coming to hand and will be reported next quarter. Twenty-six boreholes totalling 503m were drilled, and the whole core recovered screened to -10, +10-22, and +22mm fractions, and fire assayed and bottle rolled to provide insitu and recoverable gold grade estimates. The drilling programme will underpin the assessment of the economic viability of the Main waste dump and the TSF3 tailings repository. Material has also been specifically sampled for future metallurgical testwork. 4 Refer ASX announcement dated 25 August 2023 Manuka Resources Ltd For the half-year ended 31 December 2023 8 Events arising since the end of the reporting period • Share Placement and Share Purchase Plan (SPP) On 7th February 2024 the Company successfully completed a Share Placement to new and existing sophisticated investors to raise $3.178 million cash together with $3.089 million debt conversion to give a total Placement of over $6 million5. $970,000 of the debt conversion is to Director related entities and will be subject to approval by Shareholders at a General Meeting to be held on 2nd April 2024. In addition to the Placement, the company completed a Share Purchase Plan on 26 February 2024. A total of $717,275 was raised by this SPP. • Conversion $3.089 million debt to equity On 7th February 2024 as part of the successful Share Placement noted above, the Company negotiated the conversion of $3.089 million in debt to equity. Of this amount $1.835 million related to the conversion of a portion of the Company’s working capital facility into shares. Director related entities have agreed to the conversion of $970,000 debt to equity (included in the $3.089 million above) which is subject to shareholder approval at a meeting of shareholders scheduled to be held on 2 April 2024. Apart from the matters noted above and as disclosed in the financial statements, there are no other matters or circumstances that have arisen since the end of the period that has significantly affected or may significantly affect either: • • • the entity’s operations in future financial years; the results of those operations in future financial years; or the entity’s state of affairs in future financial years. Dividends No dividends were paid or declared during the period and no recommendation is made as to dividends. Auditor’s Independence Declaration A copy of the Auditor’s Independence Declaration as required under s.307C of the Corporations Act 2001 is included on the following page of this financial report and forms part of this Director’s Report. Signed in accordance with a resolution of the Directors. Dennis Karp Director Date: 14 March 2024 5 Refer ASX Announcement dated 7 February 2024 and amended Appendix 3B dated 26 February 2024 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor’s Independence Declaration to the Directors of Manuka Resources Limited As lead auditor for the review of the half-year financial report of Manuka Resources Limited for the half-year ended 31 December 2023, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; b. No contraventions of any applicable code of professional conduct in relation to the review; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the review. This declaration is in respect of Manuka Resources Limited and the entities it controlled during the financial period. Ernst & Young Siobhan Hughes Partner 14 March 2024 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Manuka Resources Ltd For the half-year ended 31 December 2023 10 Consolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2023 Notes 31 December 2023 $ $ Sales revenue 5(a) 14,458,032 8,926,069 Cost of sales 6(a) (17,992,997) (16,456,776) (3,534,965) (7,530,707) Operating profit / (loss) 31 December 2022 Other income 5(b) 260,122 385,225 Other expenses 6(b) (2,209,733) (5,309,258) 828,177 356,353 (4,656,399) (12,098,387) (3,909,483) (1,147,881) (8,565,882) (13,246,268) - - Foreign exchange gains / (losses) Profit /(loss) before finance expenses Finance expenses 6(c) Profit / (loss) before income tax Income tax expense Profit / (loss) for the period attributable to members of Manuka Resources Limited (8,565,882) Other comprehensive income / (loss) Total comprehensive loss for the period attributable to members of Manuka Resources Limited (13,246,268) 320,790 - (8,245,092) (13,246,268) Loss per share for loss attributable to the ordinary equity holders of the Company Basic profit /(loss) per share (cents per share) 15 (1.54) (4.61) Diluted profit /(loss) per share (cents per share) 15 (1.54) (4.61) This statement should be read in conjunction with the notes to the financial statements. Manuka Resources Ltd For the half-year ended 31 December 2023 11 Consolidated Condensed Interim Statement of Financial Position As of 31 December 2023 31 December 2023 30 June 2023 $ $ Cash and cash equivalents 551,195 265,833 Trade and other receivables 10,948 685,660 1,042,981 2,307,345 97,510 404,429 Notes Assets Current Inventories 7 Prepayments Other financial assets 8 Total current assets 209,565 186,000 1,912,199 3,849,267 Non-current Mine properties and development assets 9 639,680 638,743 Exploration and evaluation assets 10 36,315,654 35,200,653 Property, plant and equipment 11 15,321,098 15,879,924 Other financial assets 8 6,147,833 5,937,068 Total non-current assets 58,424,265 57,656,388 Total assets 60,336,464 61,505,655 Liabilities Current Trade and other payables 12 10,111,446 Provisions 13 712,789 643,823 64,528 968,646 27,507,088 24,524,576 471,110 147,233 Contract liabilities Borrowings 14 Lease liabilities Total current liabilities 38,866,961 7,138,892 33,423,170 Non-current Provisions 13 7,857,703 7,773,532 28,813 111,807 14 221,170 255,172 Total non-current liabilities 8,107,686 8,140,511 Total liabilities 46,974,647 Net assets 13,361,817 Lease liabilities Borrowings 41,563,681 19,941,974 Manuka Resources Ltd For the half-year ended 31 December 2023 12 Consolidated Condensed Interim Statement of Financial Position (continued) As of 31 December 2023 Notes 31 December 2023 30 June 2023 $ $ 58,178,807 57,038,387 4,766,565 4,242,049 360,950 40,160 Accumulated losses (49,944,505) (41,378,622) Total equity 13,361,817 19,941,974 Equity Share Capital 16 Share based payment reserve Other reserves This statement should be read in conjunction with the notes to the financial statements. Manuka Resources Ltd For the half-year ended 31 December 2023 13 Consolidated Condensed Interim Statement of Changes in Equity For the half-year ended 31 December 2023 Balance at 1 July 2022 Share Capital Share-based payment reserve Other reserves Accumulated losses Total equity $ $ $ $ $ 25,771,113 2,839,254 - (15,036,602) 13,573,765 Loss for the period - - - (13,246,268) (13,246,268) Other comprehensive profit Total comprehensive profit for the period Contribution of equity - - - - - - - - (13,246,268) (13,246,268) 29,766,053 - - - 29,766,053 Share based payments (513,470) 975,065 - - 461,595 Share issue costs (261,542) - - - (261,542) Reserves - - (17,127) - (17,127) Balance at 31 December 2022 54,762,154 3,814,319 (17,127) (28,282,870) 30,276,476 Balance at 1 July 2023 57,038,387 4,242,049 40,160 (41,378,623) 19,941,973 Loss for the period - - - (8,565,882) (8,565,882) Other comprehensive loss - - 320,790 - 320,790 Total comprehensive loss for the period - - 320,790 (8,565,882) (8,245,092) Contribution of equity 1,313,399 - - - 1,313,399 Share based payments - 524,516 - - 524,516 Share issue costs (172,979) - - - (172,979) Balance at 31 December 2023 58,178,807 4,766,565 360,950 (49,944,505) 13,361,817 This statement should be read in conjunction with the notes to the financial statements. Manuka Resources Ltd For the half-year ended 31 December 2023 14 Consolidated Condensed Interim Statement of Cash Flows For the half-year ended 31 December 2023 31 December 2023 31 December 2022 $ $ Receipts from customers 14,256,647 8,982,216 Payments to suppliers and employees (15,001,051) (14,826,247) 236,247 385,225 Operating activities Other income Finance costs paid (320,813) (66,346) Net cash from/ (used in) operating activities (828,970) (5,525,152) (6,808) (597,410) Investing activities Acquisition of property, plant and equipment Disposal of property, plant and equipment - 224,068 Payments for development and exploration assets (557,787) (377,270) Payment for other assets (23,565) - Net cash used in investing activities (588,160) (750,612) Repayments of borrowings (2,491,141) (1,556,673) Proceeds from borrowings 3,425,980 3,857,094 Repayment of lease liabilities (202,631) (81,191) Proceeds from issues of ordinary shares 1,047,500 4,110,00 Financing activities Costs of issue of ordinary shares (77,216) (261,543) Net cash from / (used in) financing activities 1,702,492 6,067,687 Net change in cash and cash equivalents 285,362 (208,077) Cash and cash equivalents, at beginning of the period 265,833 Cash and cash equivalents, at end of period 551,195 This statement should be read in conjunction with the notes to the financial statements. 1,160,615 952,538 Manuka Resources Ltd For the half-year ended 31 December 2023 15 Notes to the Financial Statements 1 Nature of operations The principal activities of Manuka Resources Ltd comprise of exploration, mine development, mining and processing of silver and gold. During the financial half-year ending 31 December 2023, the Company’s principal activities related to the processing of mineralised gold material from Mt Boppy (Mt Boppy Stockpile Reprocessing) including bulk sampling and screening and haulage of screened material. Field activities focused on a comprehensive review of all exploration prospects and completion of a sonic drill programme. In addition, Trans-Tasman Resources Limited has been progressing its EPA approvals for its Taranaki VTM project through the EPA’s Decision Making Committee (DMC) process. 2 Basis of preparation The interim consolidated financial statements of the Group are for the six months ended 31 December 2023 and are presented in Australian dollars ($), which is the functional currency of the parent company. These interim condensed consolidated financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. They do not include all the information required in annual financial statements in accordance with Australian Accounting Standards and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2023 together with any public announcements made during the half-year ended 31 December 2023. The interim financial report has been approved and authorised for issue by the board of directors on 14 March 2024. 2.1 Going Concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. During the six months to 31 December 2023, the Group generated operating loss of $8,565,882 (2022: Loss $13,246,268) and negative operating cash flows of $828,970 (2022: ($5,525,152)). This was primarily driven by high fixed production and operating costs at the Wonawinta plant and declining gold recoveries during December 2023. In addition, the Group experienced a period of minimal sales during July and August 2023 whilst the Group recommenced mining and built up gold in circuit to recoverable levels. As a consequence, at 31 December 2023 the Group had $551,195 of cash on hand and remained in a net current liability position of $36,954,762 (30 June 2023: $29,573,903) due primarily to $27,507,088 in current debt. The most significant loan balance amounts to $15,173,988 million which is repayable at 30 September 2024. In addition, the Company has a trade finance facility with rolling quarterly repayment requirements and has other short term loans due to related parties and asset backed funding. In addition, at period end, the Group had current payables of $10,111,445, many of which were long dated or past due. Subsequent to year end, the Company successfully completed a placement to sophisticated investors and a Share Purchase Plan for existing shareholders which together raised $3,894,725 million in cash and $3,088,938 Manuka Resources Ltd For the half-year ended 31 December 2023 16 million of debt to equity conversion. Proceeds from the Offer have been used by the company to advance regulatory approvals for the Taranaki VTM Project, progress studies at Mt Boppy and pay some of the long dated creditors. Additionally, the Group has been managing its cash position though the negotiation of payment plans with creditors, the negotiation of loan repayment deferrals with lenders, and the use of an existing working capital facilities to manage short term cash flow needs. Importantly, the majority of the current debt balance has been successfully deferred, to a