The information contained within this announcement is deemed to constitute inside information as stipulated under the UK version of the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

31 July 2023

Unicorn Mineral Resources Plc

("Unicorn" or the "Company")

Results for the year ended 31 March 2023

Unicorn Mineral Resources Plc (LSE:UMR),  a mineral exploration and development company based in Ireland and exploring for zinc, lead, copper and silver, with its main focus at present being the "Limerick Basin" in Ireland,  is pleased to announce its audited annual results for the year ended 31 March 2023.

The Annual Report and Financial Statements for the year ended 31 March 2023 will shortly be available on the Company's website at www.UnicornMineralResources.com. A copy of the Annual Report and Financial Statements will also be uploaded to the National Storage Mechanism where it will be available for viewing at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

- ENDS -

For further information, please visit www.UnicornMineralResources.com or contact:

Unicorn Mineral Resources Plc

Richard O'Shea, CEO

Tel: +353 87 2560397

Email: [email protected]

John O'Connor, CFO

Tel: +353 86 259 5123

Email: [email protected]

Novum Securities Limited - Financial Adviser and Broker

David Coffman / George Duxberry

Colin Rowbury

Tel: +44 (0)207 399 9400

About Unicorn Mineral Resources plc:

Unicorn Mineral Resources is an Irish mineral exploration company with a strategic focus on the exploration for economic deposits of "Irish Type" carbonate hosted copper / lead / zinc and silver mineral deposits in the Irish Midlands Orefield. Unicorn have acquired a high-class land package using the latest geological, structural, and mineralogical models to drive the target generation programme. Unicorn has in house experience and expertise to run exploration programmes and explore sole venture licences. Unicorn is dedicated to creating shareholder value and will assess exploration and / or development opportunities going forward including potential joint venture partners.

CHAIRMAN'S REPORT

As Chairman of Unicorn Mineral Resources Plc, a company focussing on metals exploration in Ireland (primarily zinc), I am delighted to have been involved over the last two years in the transformation of the Company leading to its listing on the London Stock Exchange on 27 October 2022 and, in the process, raising c.€1.08m before costs.

The proceeds of these funds are mainly being used for the exploration of Unicorn's flagship project around Kilmallock in Limerick, Ireland and I am delighted that the planned, three-month drilling program started in May 2023.  Previous drilling on the Kilmallock Property has intersected significant, high-grade zinc, lead, and silver mineralisation at a number of zones.  With these licences being located just 20km south of Glencore's Pallasgreen Deposit, which has an inferred resource of 45 million tonnes at 7.2% zinc, we have high hopes for this area.

Unicorn is dedicated to creating shareholder value and your directors will strive over the next few years to make Unicorn a successful exploration company.  Unicorn is also aware of its corporate responsibilities in an ever-changing world.  At Unicorn, we pride ourselves on being skilled, responsible operators.  We function with the clear mandate of being in full compliance with corporate standards, applicable environmental laws, regulation and permit requirements.

I look forward to meeting shareholders, new and old, at this year's Annual General Meeting in September, where we hope to be able to update shareholders positively on Unicorn's Kilmallock drilling program.

Paddy Doherty

Chairman

CHIEF EXECUTIVE'S REPORT

I am pleased to deliver the first CEO's statement since the Company's listing on the London Stock Exchange in October 2022.

Highlights

·    Listed on the London Stock Exchange in October 2022, raising c.€1.08m gross (c.€0.84m net of costs)

·    Drilling permissions granted in April 2023

·    Drilling programme at Kilmallock commenced in May 2023

·    Assay results of the core samples from the drill programme expected in September 2023

·    Loss for the year of c.€0.4m (2022: c.€0.5m)

·    Year end cash balance of c.€0.5m, with net assets of c.€0.4m

Overview

The year to 31 March 2023 has been an exciting period that saw the fulfilment of the Company's ambition to achieve a listing on the London Stock Exchange.  The Board recognised that a successful exploration of the Company's prospects required additional funding and that a listing on the London market, with its base of sophisticated investors interested in mineral exploration, would be the best path to securing the necessary finances.

Following the listing in October 2022, which raised €836,272 net of fees and expenses, it took a further six months to gain the necessary licences and permissions, with the Geoscience Regulation Office (GSRO) of the Department of Environment, Climate and Communications, confirming in April 2023 that drilling may proceed on Unicorn's Kilmallock licence area in the Limerick Basin.  Groundwork carried out following the listing in 2022, led to a detailed target review which revised the drilling plan to a three stage, six hole drilling programme, comprising c.1,250m of drilling using a single rig.  This commenced in May 2023, with the drilling results expected to be assayed in August / September 2023.

Update on Drilling Programme

The drilling programme at Kilmallock was designed to follow up on historic high-grade zinc, lead, copper and silver mineralisation previously discovered at Kilmallock by Boliden.  It was proposed to drill six exploration drill holes to test for Waulsortian Reef hosted zinc, lead, copper and silver massive sulphide mineralisation.   The original plan had been for 7 holes to an aggregate depth of 2,150m; but this plan was refined through a detailed target review following groundwork carried out following the listing in October 2022.  The drilling plan was revised to a three stage, six hole drilling programme, comprising c.1,250m of drilling using a single rig, as announced in May 2023.  The proposed drilling was located in a region where historic exploration has discovered, but left undefined and undelineated, two high grade mineralised bodies at Ballycullane and Bulgaden. The Ballycullane mineralisation is dominated by shallow, sub-outcropping oxides, probably related to a weathered massive sulphide body. The Bulgaden zone is located 1.2km to the southeast and consists of primary, massive sulphide mineralisation, rich in zinc and lead, with a significant silver endowment.

The drilling programme was designed to test the base of the Waulsortian Reef target zone for extensions to the currently defined zinc and lead rich mineralising system and to refine and define the understanding of the geological / structural setting of the mineralising system.  Priority Drilling Ltd. Are the diamond drilling contractor and the rig, an Atlas Copco CS14, mobilised to site on 15 May 2023.  Visual analysis of the drill results indicate a major fault zone that is striking roughly north-south and dipping steeply to the east, which is interpreted to control the historic mineralisation. The Company has amended its drill programme to confirm the revised structural / geological model and test the more prospective hanging-wall side of the fault. 

The drilling programme is now expected to be completed by mid-August 2023, the core samples will then be despatched for analysis with the results due back in 4-6 weeks thereafter.

Financials

The main event of the year was the IPO, which raised €1,075,562 before expenses.  This was on top of the €292,500, also before expenses, raised in the pre-IPO round in the previous financial year, primarily to meet the fees of the listing.  Against this injection of cash aggregating to c.€1,368,062, the Company incurred total professional fees and commissions of €419,076, giving a total cash injection over 2022 and 2023 of €948,986.  Administrative expenses for the year to 31 March 2023 fell slightly to €424,579 (2022: €515,712), despite the inclusion of Director's remuneration of €142,976 for the period from the IPO (2022: €0), due to the write-off in 2022 of €291,619 on the surrendering of the Waterford licences.  Exploration expenses of €£72,367 (2022: €3,753) were capitalised. 

Outlook

The next key step for the Company is completing the drilling programme on its flagship Kilmallock property in the Limerick Basin in Ireland.  The property has had some positive results from previous drilling and is located 20km south of the Pallas Green project owned by Glencore.  In addition, drilling by another operator on the Ballywire prospect 10km to the east of Kilmallock has recently produced some good results which is encouraging for the Limerick Basin in general.  I look forward to updating shareholders over the next few months as the assay results come to hand.

Richard O'Shea

Chief Executive

The Financial Statements were approved and authorised for issue by the board of directors and were signed on its behalf by:

STATEMENT OF CHANGES IN EQUITY

NOTES TO THE FINANCIAL STATEMENTS

1.         Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these Financial Statements.

1.1.  Going concern

The preparation of financial statements requires an assessment on the validity of the going concern assumption. The validity of the going concern concept is dependent on the Company having available adequate financial resources to continue operations in 2024, and thereafter finance being available for the continuing working capital requirements of the Company and finance for the development of the Company's projects becoming available. Based on the assumptions that the Company has adequate financial resources to continue operation and confidence that finance will become available, the Directors believe that the going concern basis is appropriate for these accounts. Should the going concern basis not be appropriate, adjustments would have to be made to reduce the value of the company's assets, in particular the intangible assets, to their realisable values. Further information concerning going concern is outlined in Note 21.

1.2.  Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax payable is based on the taxable profit for the year. Taxable profit differs from the loss as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the statement of financial position liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses to the extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Unrecognised deferred tax assets are reassessed at each statement of financial position date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

1.3.  Intangible Assets

Exploration and evaluation assets

Exploration expenditure relates to the initial search for mineral deposits with economic potential in Ireland.

Evaluation expenditure arises from a detailed assessment of deposits that have been identified as having economic potential.

The costs of exploration properties and cost of licences to explore for or use minerals, which include the cost of acquiring prospective properties and exploration rights and costs incurred in exploration and evaluation activities, are capitalised as intangible assets as part of exploration and evaluation assets.

Exploration costs are capitalised as an intangible asset until technical feasibility and commercial viability of extraction of reserves are demonstrable, when the capitalised exploration costs are reclassed to property, plant and equipment. Exploration costs include an allocation of administration and salary costs (including share-based payments) as determined by management.

Prior to reclassification to property, plant and equipment, exploration and evaluation assets are assessed for impairment and any impairment loss recognised immediately in the statement of comprehensive income.

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Impairment of intangible assets other than goodwill

Exploration and evaluation assets are assessed for impairment on a licence-by-licence basis when facts and circumstances suggest that the carrying amount may exceed its recoverable amount. The company reviews for impairment on an ongoing basis and specifically if any of the following occurs:

(a)     the period for which the Company has a right to explore under the specific licences has expired or is expected to expire;

b)      further expenditure on exploration and evaluation in the specific area is neither budgeted or planned;

c)       the exploration and evaluation has not led to the discovery of economic reserves;

d)      sufficient data exists to indicate that although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

1.4.  Financial Instruments

Financial assets and financial liabilities are recognised in the Company's statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities are recognised immediately at fair value through other comprehensive income ("FVOCI").

The Company includes in this category cash and other receivables. Due to the nature of the financial assets being short-term in nature, the carrying value approximates fair value.

Impairment of financial assets

The Company only holds receivables at amortised cost, with no significant financing component and which have maturities of less than 12 months and as such, has implemented the simplified approach for expected credit losses (ECL) model under IFRS 9 to account for all receivables.

Therefore, the Company does not track changes in credit risk, but instead, recognizes a loss allowance based on lifetime ECLs at each reporting date.

A financial asset is derecognised only when the contractual rights to cash flows from the financial asset expires, or when it transfers the financial asset and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognised in the profit or loss.

Financial liabilities measured subsequently at amortised cost

Financial liabilities that are not:

(i)     contingent consideration of an acquirer in a business combination,

(ii)    held for trading, or

(iii)   designated as at FVOCI,

are measured subsequently at amortised cost using the effective interest method. The Company includes in this category trade and other payables.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Warrants and Options

Warrants and options issued are classified separately as equity or as a liability at FVOCI in accordance with the substance of the contractual arrangement. Warrants or options classified as liabilities at FVOCI are stated at fair value, with any gains and losses arising on remeasurement recognised in the statement of other comprehensive income.

2.         Reporting entity

Unicorn Mineral Resources PLC (the 'Company') is a limited company incorporated and registered in Ireland. The Company's registered office is at 39 Castleyard, 20/21 St Patrick's Road, Dalkey, Co. Dublin. The Company's principal activity is set out in the Director's Report.

3.         Basis of preparation

The Financial Statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the EU (collectively IFRSs). They were authorised for issue by the Company's board of directors on 28 July 2023.

Details of the Company's accounting policies, including changes during the year, are included in Note 1.

In preparing these Financial Statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in Note 5.

3.1.  Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.

3.2.  Changes in accounting policies

International Financial Reporting Standards

New and amended standards mandatory for the first time for the financial periods beginning on or after 1 January 2022

The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 31 December 2022 but did not result in any material changes to the financial statements of the Company.

New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted

The following standards and interpretations to published standards are not yet effective:

There was no material impact to the financial statements in the current period from these standards, amendments and interpretations.

4.         Functional and Presentation Currency

These Financial Statements are presented in Euros, which is the Company's functional currency. All amounts have been rounded to the nearest Euro, unless otherwise indicated.

5.         Critical accounting judgements and key sources of estimation uncertainty

In the process of applying the Company's accounting policies above, management has made the following judgements that have the most significant effect on the amounts recognised in the financial statements.

Exploration and evaluation assets

The assessment of whether general administration costs and salary costs are capitalised or expensed involves judgement. Management considers the nature of each cost incurred and whether it is deemed appropriate to capitalise it within intangible assets.

Costs which can be demonstrated as project related are included within exploration and evaluation assets. Exploration and evaluation assets relate to prospecting, exploration and related expenditure in Ireland.

The Company's exploration activities are subject to a number of significant and potential risks including:

•          uncertainties over development and operational risks;

•          compliance with licence obligations;

•          ability to raise finance to develop assets;

•          liquidity risks; and

•          going concern risks.

The recoverability of intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of uncertainties, including the ability to raise finance to develop future projects. Should this prove unsuccessful, the value included in the statement of financial position would be written off to the statement of comprehensive income. The recoverability of investments in subsidiaries and intercompany receivables is dependent on the recoverability of intangible assets.

Key sources of estimation uncertainty

The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The key sources of estimation uncertainty that may have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The Company undertakes periodic reviews to assess the risk factors and have concluded that there is little or no risk that will cause material adjustments to be made in the next financial year.

Impairment Intangible Assets

The assessment of intangible assets for any indications of impairment involves a degree of estimation. If an indication of impairment exists, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that carrying amount exceeds recoverable amount Recoverable amount is determined as the higher of fair value less costs to sell and value in use. The assessment requires judgements as to the likely future commerciality of the assets and when such commerciality should be determined; future revenues, capital and operating costs and the discount rate to be applied to such revenues and costs.

Valuation of Warrants and Options

The issued warrants and options are classified as liabilities at FVOCI and are stated at fair value, with any gains and losses arising on re-measurement recognised in the Statement of Comprehensive Income.

The fair value of the warrants and options is measured using an appropriate option pricing model, taking into account the terms and conditions upon which the warrants and options were issued. The model used by the Company is the Black Scholes model.  The Company has made estimates as to the volatility of its own shares based on the historic volatility for the same period of time as equals the life of the warrant or option.

6.         Segment information

The Company is engaged in one business segment only: exploration of mineral resource projects. Therefore, only an analysis by geographical segment has been presented. 

6.1.  Segment revenues and results

The following is an analysis of the Company's revenue and results from continuing operations by reportable segment:

The accounting policies of the reportable segments are the same as the Company's accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors' salaries, share of profit of associates, share of profit of a joint venture, gain recognised on disposal of interest in former associate, investment income, other gains, and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

6.2.  Segment assets and liabilities

Geographical information

The Company operates in one geographical area - Republic of Ireland.

7.         Expenses by nature

In addition to the above professional fees, the Company incurred costs of €103,554 in relation to commission paid for the listing on the London Stock Exchange.  In accordance with IAS 32 these costs have been deducted from Share Premium (Note 16).

8.         Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:

9.         Employee benefit expenses

The monthly average number of persons, including the directors, employed by the Company during the year was as follows:

10.       Director's remuneration

11.       Related party and other transactions

Key Management Compensation and Directors' Remuneration

The remuneration of the directors, who are considered to be the key management personnel, is set out below.

The Directors have also been issued with Options over 3,600,000 Ordinary shares, as set out in Note 18 to the Financial Statements.

12.       Earnings per share

The calculation of earnings per share is (EPS) based on the loss attributable to equity holders divided by the weighted average number of shares in issue during the year.  The diluted EPS is calculated by adjusting the number of shares for the effects of dilutive options and other dilutive potential ordinary shares.

13.       Intangible assets

At the beginning of the year the Company held six licences which cover areas in Co. Limerick, Co. Tipperary and Co. Laois. Additional expenditure on these licences during the year amounted to €72,367 (2022:€3,753). The six licences were still held by the Company at the end of the year.

14.       Trade and other receivables

15.       Trade and other payables

It is the Company's normal practice to agree terms of transactions, including payment terms, with suppliers and provided suppliers perform in accordance with the agreed terms, it is the Company's policy that payment is made between 30 - 45 days.

16.       Share capital

Movements in Share Capital

On 27 October 2022, the Company raised €1,075,562 through the issue of 9,300,000 ordinary shares of £0.01 each, at a price of £0.10, to provide working capital and fund development costs. 

17.       Reserves

Share premium

The share premium reserve comprises of a premium arising on the issue of shares. Share issue expenses are deducted against the share premium reserve when incurred.

Called up share capital

The called up ordinary share capital reserve comprises of the nominal value of the issued share capital of the company.

Retained earnings

Retained deficit comprises of accumulated profits and losses incurred in the current and prior years.

Share based payment reserve

The share payment reserve arises on the grant of share options as outlined in Note 18.

Other Reserve

The other reserve arises on the fair value valuation of the warrants and options, using the Black Scholes model as outlined in Note 18.  The initial recognition of the fair value of the warrants and options has been recognised in the Statement of Comprehensive Income.

18.       Warrants and Options

Warrants

At 1 April 2022 there were Warrants unexercised for a total of 10,000,000 Ordinary shares at a strike price of £0.10. During the year, the Company issued Warrants for a further 1,001,000 Ordinary shares at a strike price of £0.10. At the balance sheet date of 31 March 2023 there were Warrants unexercised for a total of 11,001,000 Ordinary shares, which expire between 19 October 2026 and 27 October 2027.

Options

At 1 April 2022 there were Options unexercised over a total of 3,600,000 Ordinary shares at a strike price of £0.05. During the year, the Company issued Options for a further 100,000 Ordinary shares at a strike price of £0.065.  At the balance sheet date of 31 March 2023 there were Options unexercised over a total of 3,700,000 Ordinary shares, which expire between 27 October 2028 and 31 March 2030.

Share based payments

The Company plan provides for a grant price equal to the average quoted market price of the ordinary shares on the date of grant.  Equity-settled share-based payments are measured at fair value at the date of grant.

3,600,000 of the Options have been issued to directors, as set out below.

Using the Black Scholes valuation, the fair value of the share-based payments as at 31^st March 2023 was €149,174. 

Valuation of Options and Warrants

The fair value of Warrants and Options is measured by use of the Black-Scholes valuation.  In the financial statements for the year ended 31 March 2022, prior to the Company's listing on the London Stock Exchange, there was no provision made for the provision for the fair value of the Warrants and Options.

Using the Black Scholes valuation, the fair value of the Warrants as at 31 March 2023 was €264,937 and the fair value of the Options was £153,516, of which €149,174 relates to the Options issued to the Directors and €4,142 for the non-director Options.  

The €149,174 fair value of the Director Options and the fair value of the Options and non-directors' options of €269,079 has been recognised in the Statement of Other Comprehensive Income.

The Directors have not restated the prior year financial statements as it has been considered that this amount is not a material adjustment and does not impact the true and fair view of the financial statements.

19.       Notes supporting statement of cash flows

20.       Financial Instruments and Financial Risk Management

The Company's principal financial instruments comprise cash and cash equivalents. The main purpose of these financial instruments is to provide finance for the Company's operations. The Company has various other financial assets and liabilities such as receivables and trade payables, which arise directly from its operations.

It is, and has been throughout 2023 and 2022, the Company's policy that no trading on derivatives be undertaken.

The main risks arising from the Company's financial instruments are foreign currency risk, credit risk, liquidity risk, interest rate risk and capital risk. The board reviews and agrees policies for managing each of these risks which are summarised below.

Foreign currency risk

The Company undertakes certain transactions denominated in foreign countries. Hence, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward exchange contracts where appropriate.

At the year ended 31 March 2023 and 31 March 2022, the Company had no outstanding forward exchange contracts.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. As the Company does not, as yet, have any sales to third parties, this risk is limited.

The Company's financial assets comprise receivables and cash and cash equivalents. The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The Company's exposure to credit risk arise from default of its counterparty, with a maximum exposure equal to the carrying amount of cash and cash equivalents in its consolidated balance sheet.

The Company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Company defines counterparties as having similar characteristics if they are connected entities.

Liquidity risk management

Liquidity risk is the risk that the Company will not have sufficient funds to meet liabilities. Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium, and long-term funding and liquidity management requirements. The Company manages liquidity by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Cash forecasts are regularly produced to identify the liquidity requirements of the Company. To date, the Company has relied on shareholder funding and loan arrangements to finance its operations.

The expected maturity of the Company's financial assets (excluding prepayments) as at 31 March 2023 and 31 March 2022 was less than one month.

The Company expects to meet its other obligations from operating cash flows with an appropriate mix of funds and equity investments. The Company further mitigates liquidity risk by maintaining an insurance programme to minimise exposure to insurable losses.

The Company had no derivative financial instruments as at 31 March 2023 and 31 March 2022.

Interest rate risk

The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's holdings of cash and short-term deposits.

It is the Company's policy as part of its disciplined management of the budgetary process to place surplus funds on short-term deposit in order to maximise interest earned.

Capital Risk Management

The primary objective of the Company's capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value.

The capital structure of the Company consists of issued share capital, share premium and reserves. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. No changes were made in the objectives, policies or processes during the years ended 31 March 2023 and 31 March 2023. The Company's only capital requirement is its authorised minimum capital as a plc.

21.       Going concern

The Company incurred a loss for the financial year of €424,579 (2022: loss €515,712) and the Company had net current assets of €257,817 (2022: net current assets €51,834) at the statement of financial position date leading to concern about the Company and Company's ability to continue as a going concern.

The Company had a cash balance of €532,734 (2022: €152,877) at the Statement of Financial Position date.

The Directors have reviewed the Company's monthly cash flow forecasts and conclude that the Company has sufficient funds to continue operating into 2024.  Thereafter, the Company will need to raise further funds to continue operations.  Additional funds will also be needed for the next phase of the Company's exploration plans for the Kilmallock and Lisheen properties.

The Directors have concluded that these circumstances give rise to a material uncertainty relating to going concern, arising from events or conditions that may cast significant doubt on the entity's ability to continue as a going concern if a further fund raise was unsuccessful. However, considering the recent successful listing in October 2022, the Directors are confident that they can continue to adopt the going concern basis in preparing the Financial Statements. The Financial Statements do not include any adjustment that may arise in the event that the Company is unable to raise finance, realise its assets and discharge its liabilities in the normal course of business. The assessment as to whether the going concern basis is appropriate has also taken into account all information available up to the date of authorisation of these Financial Statements and the Directors are not aware of any other indicators which would give doubt to the going concern status of the Company.

22.       Post balance sheet events

There were no material post balance sheet events affecting these Financial Statements.

23.       Approval of financial statements

The financial statements were approved by the board of directors on 28 July 2023.