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Registered number: 14406747
WARRAH RESOURCES LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Fletcher & Partners
Chartered Accountants
Salisbury
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WARRAH RESOURCES LIMITED
COMPANY INFORMATION
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Stewart Macdonald (appointed 10 October 2022)
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Derek Reeves (appointed 19 January 2024)
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Barry Alan Rowland (appointed 19 January 2024)
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James Barrett Wallace (appointed 19 January 2024)
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WARRAH RESOURCES LIMITED
CONTENTS
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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WARRAH RESOURCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
Stewart Macdonald (appointed 10 October 2022)
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Derek Reeves (appointed 19 January 2024)
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Barry Alan Rowland (appointed 19 January 2024)
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James Barrett Wallace (appointed 19 January 2024)
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Directors' responsibilities statement
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The directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards for Small and Medium-sized Entities ('IFRS for SMEs').
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS for SMEs, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Small companies' exemption note
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Stewart Macdonald
Director
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Page 1
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WARRAH RESOURCES LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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(Loss)/profit from operations
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(Loss)/profit for the year
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The notes on pages 8 to 14 form part of these financial statements.
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Page 2
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WARRAH RESOURCES LIMITED
REGISTERED NUMBER: 14406747
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Exploration & Evaluation Costs - Tangible
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Exploration & Evaluation Costs - Intangible
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Cash and cash equivalents
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Trade and other liabilities
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Issued capital and reserves
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Page 3
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WARRAH RESOURCES LIMITED
REGISTERED NUMBER: 14406747
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
For the year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to the companies subject to the small companies regime.
The financial statements on pages 2 to 14 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 8 to 14 form part of these financial statements.
Page 4
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WARRAH RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive loss for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Total contributions by and distributions to owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Total contributions by and distributions to owners
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The notes on pages 8 to 14 form part of these financial statements.
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Page 5
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WARRAH RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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(Loss)/profit for the year
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Movements in working capital:
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Increase in trade and other payables
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Cash generated from operations
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Net cash (used in)/from operating activities
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Cash flows from investing activities
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Exploration and evaluation assets - tangible additions
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Exploration and evaluation assets - intangible additions
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Net cash used in investing activities
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Cash flows from financing activities
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Proceeds from loan finance
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Repayment of loan finance
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Net cash from financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the end of the year
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The notes on pages 8 to 14 form part of these financial statements.
Page 6
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WARRAH RESOURCES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Transition to IFRS for SMEs
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Accounting estimates and judgments
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Tangible exploration and evaluation assets
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Intangible exploration and evaluation assets
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Related party transactions
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Page 7
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Warrah Resources Limited (the 'Company') is a company limited by shares, incorporated on 10 October 2022 and domiciled in England and Wales. Its registered office is at Kings Farm House, Over Wallop, Stockbridge, SO20 8HZ.
The Company's principal activity is exploring for gold and battery metals in the Falklands.
These financial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities ('IFRS for SMEs'), as appropriate for for-profit orientated entities.
These are the Company's first set of financial statements prepared in accordance with IFRS for SMEs.
The financial statements cover the Company as an individual entity and are presented in pound sterling, rounded to the nearest pound, which is the Company's functional and presentation currency.
Historic cost convention
The financial statements have been prepared under the historical cost basis, except for, where applicable, financial instruments recognised at fair value and subsequently measured at amortised cost.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 5.
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Transition to IFRS for SMEs
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These are the Company's first set of financial statements prepared in accordance with IFRS for SMEs upon transition from FRS 105.
The change in reporting framework has not affected the reported financial position, performance and cash flows of the Company. As such, prior year figures in the accounts are comparable with the current year figures.
4.Accounting policies
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Foreign currency translation
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Foreign currency transactions are translated into pounds sterling using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses arising resulting from the settlement of such transactions are recognised in either profit or loss or capitalised if settlement was in respect of exploration assets.
Foreign exchange gains and losses arising from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Page 8
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Current and non-current classification
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Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Company's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Company's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no right at the end of the reporting period to defer the settlement for the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
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Exploration and evaluation assets
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The Company has chosen to capitalise expenditure in relation to exploration and evaluation assets on a full cost basis, where directly attributable to exploration and evaluation. Expenditure is further classified as either tangible or intangible based on the nature of the expense.
Capitalised tangible exploration and evaluation assets
All directly attributable expenditure incurred in respect of physical items, including machinery and equipment for exploration, are capitalised and measured at cost less any accumulated impairment losses.
These assets are reviewed for impairment at each reporting date with the impairment loss recognised in profit or loss.
Capitalised intangible exploration and evaluation assets
All directly attributable expenditure incurred in respect of non-physical items are capitalised and measured at cost less any accumulated impairment losses. Items include, but are not limited to, acquisition of licences and rights to explore, and geological surveys and sampling.
These assets are reviewed for impairment at each reporting date with the impairment loss recognised in profit or loss.
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Impairment of tangible and intangible assets other than goodwill
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At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for
Page 9
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Impairment of tangible and intangible assets other than goodwill (continued)
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which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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Cash and cash equivalents
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Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. 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 through profit or loss) 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 at fair value through profit or loss are recognised immediately in profit or loss.
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and usually paid within 30 days of recognition.
Ordinary shares are classified as equity.
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Accounting estimates and judgments
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5.1 Judgment
Carrying value of tangible and intangible exploration and evaluation assets
There is uncertainty over the outcome of the exploration and as such potential impairment could have a material impact on the financial statements. Management has made a judgment as to whether there are any indicators of impairment, including the right to continue exploration exists, and continued expenditure is planned.
Page 10
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The average number of employees during the year was 4 (2023: 1).
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Tangible exploration and evaluation assets
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The tangible expenditure relates to the acquisition and use of equipment during the period of the licence.
There is uncertainty over the outcome of the exploration and as such potential impairment could have a material impact on the financial statements. Management has made a judgment as to whether there are any indicators of impairment during the year in respect of tangible exploration assets and concluded that there were no indicators of impairment.
Page 11
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Intangible exploration and evaluation assets
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The intangible expenditure relates to active exploration in the Falklands under the current licence held which expires in 2027.
There is uncertainty over the outcome of the exploration and as such potential impairment could have a material impact on the financial statements. Management has made a judgment as to whether there are any indicators of impairment during the year in respect of intangible exploration assets and concluded that there were no indicators of impairment.
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Total loans and borrowings
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Page 12
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Total current trade and other payables
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Ordinary shares of £1.00 each
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Ordinary shares of £1.00 each
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Owners of ordinary shares have full rights regarding voting and payment of dividends and distributions.
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Page 13
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WARRAH RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium
The reserve is used to recognise the amount subscribed for share capital in excess of its nominal value.
Retained earnings
The reserve recognises the accumulated profits and losses up to the statement of financial position date.
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Related party transactions
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Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. The key management personnel comprise the directors as listed within the director's report.
At 31 December 2024, the Company owed 2 directors £nil (2023: £8,000) in respect of an interest free loan provided in November 2023, which has been fully repaid during the year.
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