Announcement PDF Horizon Gold Limited ABN:27 614 175 923 Interim Report for the period ended 31 December 2024 Horizon Gold Limited Interim Financial Report For the period ended 31 December 2024 Contents Page Directors’ report Auditor’s independence declaration Independent auditor’s review report Directors’ declaration Financial Statements Condensed consolidated statement of comprehensive income Condensed consolidated statement of financial position Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flows Notes to the consolidated interim financial statements 3 5 6 8 9 10 11 12 13 The financial statements in this interim financial report are for Horizon Gold Limited and its wholly owned subsidiary Gum Creek Gold Mines Pty Ltd. The interim financial report is presented in Australian dollars. Horizon Gold Limited is a Company limited by shares, incorporated and domiciled in Australia. The Company’s registered office is: Horizon Gold Limited Suite 8, 47 Havelock Street West Perth WA 6005 2 Horizon Gold Limited Directors' report 31 December 2024 Directors' Report The directors present their report on the consolidated entity consisting of Horizon Gold Limited (or “the Company”) and the entity it controlled at the end of, or during, the interim period ended 31 December 2024 (“the Group”). Directors The names of the directors of the Company during the period and until the date of this report are as below. Directors were in office for the entire interim period unless otherwise stated. Peter Sullivan Leigh Ryan James Sullivan Peter Venn Dugald Morrison (resigned 20 August 2024) Company secretary Trevor O’Connor Operating and Financial Review Operating Result for the Period The Group recorded a profit after tax for the interim period ended 31 December 2024 of $17,000 (2023: loss of $1,117,000). The results, in comparison to the previous corresponding period, reflect the following significant changes: • • capitalised exploration expenditure written off of $24,000 (2023: $223,000) a gain on the remeasurement of the rehabilitation provision liability of $112,000 (2023: a loss of $119,000); Review of operations Exploration and Evaluation Activities The tenements comprising the Gum Creek Gold Project are at various stages of exploration and evaluation. During the reporting period Horizon Gold Limited (the Company) commenced a feasibility study (Study) on the Gum Creek Project. The Study is assessing the potential to recommence production through a processing plant located at the previously permitted Gidgee mill site using near surface open pittable portions of the current gold resource (44.45Mt @ 1.50g/t Au for 2.14Moz) 1. Work on the Study has focused on geotechnical and infill resource drilling, comminution test work and further metallurgical test work, environmental surveys, tailings dam design, and project water management strategies. The Company believes the Gum Creek Gold Project can be a robust, viable, stand‐alone mining operation, and the work completed during the period has significantly advanced the Study. The Study is scheduled for completion Q4 CY2025. 1 Refer to Horizon Gold Limited ASX Announcement dated 15 May 2023 titled “19% Increase in Gold Resources at Gum Creek Project” to which the Company confirms there has been no changes. 3 Horizon Gold Limited Directors' report 31 December 2024 Corporate Activities On 15 November 2024 the Company announced the sale of its entire shareholding in Alto Metals Limited (ASX:AME) totalling 60,764,746 shares. The shares were sold for total consideration of $5.16 million following acquisition of the shares in July 2023 for $3.17 million. The proceeds were used to repay the short-term loan facility from Zeta Resources Limited (Horizon’s major shareholder) of $1,200,000 plus interest and will be used to fund the ongoing Gum Creek Feasibility Study work and for general working capital purposes. Other than the above there were no significant corporate activities that occurred during the interim period ended 31 December 2024. Interim Dividend No interim dividend was or has been declared for the period ended 31 December 2024 (2023: Nil). Subsequent events No matters or circumstances have occurred subsequent to period end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods. Rounding The amounts contained in this report and in the interim financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under Australian Securities and Investments Commission Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016. Auditor’s Independence Declaration A copy of the auditor's independence declaration is set out on page 5. Signed in accordance with a resolution of the directors. Peter Sullivan Chairman Perth, 14 March 2025 4 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated financial report of Horizon Gold Limited for the half-year ended 31 December 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) any applicable code of professional conduct in relation to the review. Perth, Western Australia 14 March 2025 B G McVeigh Partner 5 INDEPENDENT AUDITOR’S REVIEW REPORT To the Members of Horizon Gold Limited Report on the Condensed Interim Financial Report Conclusion We have reviewed the interim financial report of Horizon Gold Limited (the “Company”) and its controlled entities (the “Group”), which comprises the condensed consolidated statement of financial position as at 31 December 2024, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes, and the directors’ declaration, for the Group comprising the Company and the entities it controlled at the half-year end or from time to time during the half-year. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying interim financial report of Horizon Gold Limited does not comply with the Corporations Act 2001 including: (a) (b) giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibility is further described in the Auditor’s Responsibility for the Review of the Financial Report section of our report. We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the “Code”) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Material Uncertainty Related to Going Concern We draw attention to Note 1 (d) in the financial report, which indicates that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. 6 Responsibility of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the interim financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the interim financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility for the Review of the Financial Report Our responsibility is to express a conclusion on the interim financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2024 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. HLB Mann Judd Chartered Accountants B G McVeigh Partner Perth, Western Australia 14 March 2025 7 Horizon Gold Limited Directors’ declaration 31 December 2024 In accordance with a resolution of the directors of Horizon Gold Limited, I state that: In the directors' opinion: (a) (b) the interim financial statements and notes of Horizon Gold Limited for the interim period ended 31 December 2024: (i) gives a true and fair view of the group’s financial position as at 31 December 2024 and of its performance for the interim period ended on that date; and (ii) complies with Accounting Standard AASB134: Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. On behalf of the Board Peter Sullivan Chairman Perth, 14 March 2025 8 Horizon Gold Limited Condensed consolidated statement of comprehensive income For the interim period ended 31 December 2024 Consolidated Period ended 31 December 2024 $'000 31 December 2023 $'000 38 (16) (351) 112 (24) (60) (276) (577) 23 (28) (399) (119) (223) (16) (21) (334) (1,117) Income tax benefit 594 - Profit / (loss) for the period after income tax 17 (1,117) Gain / (Loss) on the revaluation of equity instruments at fair value through other comprehensive income net of tax Other comprehensive income / loss for the period, net of tax 2,489 2,489 (557) (557) Total comprehensive profit / (loss) for the period 2,506 (1,674) Profit / (loss) for the half year is attributable to: Owners of Horizon Gold Limited 17 (1,117) 2,506 (1,674) Cents Cents 0.01 (0.86) Notes Revenue from continuing operations Other income Care and maintenance expenses Corporate and administration costs Gain / (loss) on remeasurement of rehabilitation provision Exploration expenditure written off Share-based payments Right of use amortisation Finance costs Loss before income tax 3 Other comprehensive income Total comprehensive income / (loss) for the half year is attributable to: Owners of Horizon Gold Limited Profit / (loss) per share attributable to the ordinary equity holders of the Company: Basic and diluted profit / (loss) per share The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 9 Horizon Gold Limited Condensed consolidated statement of financial position As at 31 December 2024 Notes ASSETS Consolidated 31 December 30 June 2024 2024 $'000 $'000 Current assets Cash and cash equivalents Trade and other receivables Prepayments Total current assets 3,635 82 11 3,728 219 38 33 290 3,991 39,297 43,288 47,016 3,991 2,066 37,757 43,814 44,104 551 43 594 354 39 393 7 11,900 11,900 12,494 34,522 11,755 11,755 12,148 31,956 8 9 51,979 445 (17,902) 34,522 51,979 (718) (19,305) 31,956 4 Non-current assets Property, plant and equipment Financial assets at fair value through other comprehensive income Exploration and evaluation Total non-current assets Total assets 5 6 LIABILITIES Current liabilities Trade and other payables Provisions Total current liabilities Non-current liabilities Provisions Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves Accumulated losses Total equity The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 10 Horizon Gold Limited Condensed consolidated statement of changes in equity For the interim period ended 31 December 2024 Consolidated Contributed equity $'000 Reserves 46,111 294 (17,600) 28,805 Loss for the period Other comprehensive income for the year, net of tax - - (1,117) (1,117) - (557) - (557) Total comprehensive loss for the period - (557) (1,117) (1,674) Issue of shares – rights issue Transaction costs Share based payments 5,897 (12) - 16 - 5,897 (12) 16 Balance at 31 December 2023 51,996 (247) (18,717) 33,032 Contributed equity $'000 Reserves Accumulated losses $'000 Balance 1 July 2023 Consolidated Balance 1 July 2024 Accumulated losses $'000 $'000 $'000 Total equity $'000 Total equity $'000 51,979 (718) (19,305) 31,956 Profit for the period Other comprehensive income for the year, net of tax - - 17 17 - 2,489 - 2,489 Total comprehensive income for the period - 2,489 17 2,506 Share based payments - 60 - 60 (1,386) 1,386 445 (17,902) Transfer of reserves to accumulated losses Balance at 31 December 2024 51,979 34,522 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 11 Horizon Gold Limited Condensed consolidated statement of cash flows For the interim period ended 31 December 2024 Consolidated Period ended 31 December Notes 31 December 2024 2023 $'000 $'000 Cash flows from operating activities Payments to suppliers and employees Rent and other income received Interest received Interest paid Net cash outflow from operating activities Cash flows from investing activities Payments for exploration and evaluation expenditure Proceeds from sale of investments Payments for investments Net cash inflow / (outflow) from investing activities Cash flows from financing activities Proceeds from issue of shares Transaction costs related to issue of shares Repayment of lease liability Proceeds from borrowings from related parties Payments for borrowings from related parties Net cash inflow from financing activities 10 Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at end of the period 4 (589) 11 27 (20) (571) (531) 11 12 (1) (509) (1,162) 5,149 3,987 (823) (3,169) (3,992) 1,200 (1,200) - 1,838 (12) (20) 3,969 5,775 3,416 219 3,635 1,274 238 1,512 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 12 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 1 Basis of Preparation of interim financial report The interim financial report of Horizon Gold Limited (the Company) for the period ended 31 December 2024 was authorised for issue in accordance with a resolution of the Directors on 14 March 2025. Horizon Gold Limited is a for-profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The interim financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the annual financial report. The interim financial report should be read in conjunction with the annual financial report of Horizon Gold Limited as at 30 June 2024. It is also recommended that the interim financial report be considered together with any public announcements made by Horizon Gold Limited and its controlled entity during the period ended 31 December 2024 in accordance with the continuous disclosure obligations arising under ASX listing rules. (a) Basis of preparation of interim financial report The interim financial report is a condensed general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. The interim financial report has been prepared on a historical cost basis. For the purpose of preparing the interim financial report, the half-year has been treated as a discrete reporting period. The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated, under the option available to the Company under Australian Securities and Investment Commission (“ASIC”) (Rounding in Financial/Directors’ Report) Instrument 2016/191. The Company is an entity to which the instrument applies. (b) Changes in accounting policies and disclosures The accounting policies adopted in the preparation of the interim financial report are consistent with those adopted and disclosed in the Group's annual financial report for the year ended 30 June 2024, except for the adoption of new standards and interpretations as of 1 July 2024. The adoption of any new and revised standards and interpretation effective 1 July 2024 has not resulted in any changes to Group’s accounting policies and has no material effect on the amounts reported to the current or prior period. (c) New or amended Accounting Standards and Interpretations adopted 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. There is no material effect on the Group expected, when they are eventually implemented. (d) Going concern basis The Group incurred a net profit for the period ended 31 December 2024 of $17,000 (2023: loss of $1,117,000) and a net cash outflow from operating activities of $571,000 (2023: $509,000). As at 31 December 2024, the Group had cash and cash equivalents of $3,635,000 (30 June 2024: $219,000) and a working capital surplus of $3,134,000 (30 June 2024: working capital deficit of $103,000). Based on the Group's cashflow forecast, the Group will require additional funding in the next 12 months to enable the Group to continue its normal business activities and to ensure the realisation of assets and 13 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 extinguishment of liabilities as and when they fall due, including progression of its exploration and project development activities and meeting its annual tenement expenditure commitment. The directors are satisfied that at the date of signing of the financial report, there are reasonable grounds to believe that the Group will be able to raise additional funding and obtain support from the Company’s major shareholder to continue to meet its debts as and when they fall due and it is appropriate for the financial statements to be prepared on a going concern basis. Should the Group not achieve the funding outcomes set out above, there is a material uncertainty which may cast significant doubt as to whether the Group will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. No adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. 2 Segment information Description of segments The Group operates in one segment, being gold exploration. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Group. The accounting policies applied for internal reporting purposes are consistent with those applied in preparation of the financial statements. All of the Group’s assets are located in Australia and the Group has no major customers as it does not generate any revenue. 3 Loss for the interim period Loss before income tax includes the following specific expenses: Share based payment expense Exploration expenditure written off Finance costs Interest on short-term loans Interest on leased assets Unwinding of discount - rehabilitation 14 Consolidated Period ended 31 December 31 December 2024 2023 $'000 $'000 60 24 16 223 23 253 276 100 1 233 334 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 4 Current assets - Cash and cash equivalents Cash at bank and on hand 5 Consolidated 31 December 2024 $'000 3,635 3,635 30 June 2024 $'000 219 219 Consolidated 31 December 2024 $'000 - 30 June 2024 $'000 2,066 2,066 2,066 2,489 594 (5,149) - 3,169 (1,103) 2,066 Non-current assets - Financial assets at fair value through other comprehensive income Listed ordinary shares Opening net book amount at the beginning of the period Additions Revaluation increments / (decrements) Tax effect on sale Disposals Closing net book value at the end of the period Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity intended to hold long-term and had irrevocably elected to classify them as such upon initial recognition. 6 Non-current assets - Exploration and evaluation Opening net book amount at the beginning of the period Additions Capitalised exploration and evaluation expenditure written off Closing net book value at the end of the period Consolidated 31 December 2024 $'000 37,757 1,564 (24) 39,297 30 June 2024 $'000 36,411 1,837 (491) 37,757 The carrying value of exploration and evaluation expenditure has increased by $1,564,000 during the current reporting period due to costs incurred in relation to the Gum Creek feasibility study, infill resource drilling, geological, engineering and geotechnical consulting services and ongoing tenement rents and rates. See further details outlined in the "Exploration and Evaluation Activities" section of the Directors' Report. The ongoing carrying value of the Group's interest in exploration and evaluation expenditure is dependent upon the continuance of the Group's rights to tenure of the areas of interest, results of future exploration and the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale. 15 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 7 Non-current liabilities - Provisions Employee benefits – long service leave Rehabilitation Movement in Rehabilitation Provisions: Opening net book amount at the beginning the period Unwinding of discount Remeasurement of liability Closing net book value at the end of the period Consolidated 31 December 2024 $'000 12 11,888 11,900 30 June 2024 $'000 8 11,747 11,755 11,747 253 (112) 11,888 11,589 467 (309) 11,747 A provision for rehabilitation is recognised in relation to the mining activities for costs such as reclamation, waste site closure, plant closure and other costs associated with the rehabilitation of a mining site. Estimates of the rehabilitation are based on the anticipated technology and legal requirements and future costs, which have been discounted to their present value. In determining the restoration provision, the entity has assumed no significant changes will occur in the relevant Federal and State legislations in relation to rehabilitation of such mines in the future. Impact from the remeasurement of the rehabilitation liability has been recognised through the profit or loss given that the plant and equipment relating to this provision has been written down to its recoverable value. 8 Contributed equity (a) Ordinary share capital Consolidated 31 December 30 June 2024 2024 $'000 $'000 51,979 51,979 51,979 51,979 Issued share capital Total contributed equity (b) Movements in ordinary share capital 31 December 2024 Shares 31 December 2024 $'000 30 June 2024 Shares 30 June 2024 $'000 Opening balance Add: Issue of shares - Rights Issue Less: Transaction costs 144,839,923 51,979 125,181,641 46,111 - - 19,658,282 - 5,898 (30) Closing balance 144,839,923 51,979 144,839,923 51,979 16 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 9 Reserves Consolidated 31 December 30 June 2024 2024 $'000 $'000 Financial assets at fair value through other comprehensive income reserve Share Based Payment Reserve 445 445 (1,103) 385 718 Financial assets at fair value through other comprehensive income reserve The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other comprehensive income. Share based payment reserve The share based payment reserve records the value of share options issued to Horizon’s employees and consultants. Movements in Reserves: Consolidated Financial assets at fair value through OCI Share based payment reserve Total $’000 $’000 $’000 Opening Balance at beginning 1 July 2023 - 294 294 Revaluation of listed ordinary shares (1,103) - (1,103) Share based payment expense for the period - 91 91 Balance 30 June 2024 (1,103) 385 (718) Revaluation of listed ordinary shares 2,489 - 2,489 Share based payment expense for the period - 60 60 (1,386) - (1,386) - 445 445 Transfer to Accumulated losses Balance 31 December 2024 10 Non-cash investing and financing activities Total applications for shares in entitlement issue Less loan offset Less interest offset Net Proceeds from issue of shares (as per statement of cashflows) 17 Consolidated 31 December 31 December 2024 2023 $'000 $'000 5,897 (3,969) (90) 1,838 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 11 Share based payments Consolidated 31 December 31 December 2024 2023 $'000 $'000 60 60 Share Based Payment expense 16 16 Following shareholder approval on 23 November 2023, Leigh Ryan (Managing Director) was issued 1,500,000 options and Trevor O’Connor (Company Secretary) was issued 400,000 options over unissued ordinary shares as part of their remuneration packages. The fair value of the Options was determined using the Black-Scholes option valuation methodology and applying the following inputs: Grant Date Issue Date Exercise Price Expiry Date Risk Free Rate Volatility Fair Value per Option 23 Nov 2023 23 Nov 23 $0.33 23 Nov 26 4.14% 40.82% $0.0796 The Options vest after 12 months of continuous employment/engagement or in the event of a change of control. 12 Dividends No final dividend was declared for the period ended 31 December 2024 (2023: nil). 13 Contingencies The Group had no contingent liabilities at 31 December 2024 (2023: nil). 14 Events occurring after the reporting period No other matter or circumstance has occurred subsequent to period end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods. 15 Financial Instruments The fair value of financial assets and financial liabilities not carried at fair value on a recurring basis of the Group approximate their carrying amount. 18 Horizon Gold Limited Notes to the consolidated interim financial statements 31 December 2024 16 Related party transactions On the 11 June 2024 the Company secured a short-term funding facility of up to $1,000,000 from Zeta Resources Limited, a substantial shareholder and major shareholder of the Company and this was increased to $1,500,000 on 12 September 2024. In summary the terms of the facility were that the funds were unsecured, could be drawn down in tranches of not less than $50,000 and interest was payable at 8.00% per annum. The earliest the funds were repayable was 31 December 2024. $1,200,000 of the loan facility was drawndown during the period and repaid in full during the period, including interest of $22,746. Terms were on an arms length basis. Other than as disclosed above, transactions with related parties during the half-year were on the same basis as stated in the 30 June 2024 Annual Report. 19