Announcement PDF Interim Report 31 December 2023 ABN 97 140 316 463 Suvo Strategic Minerals Limited Directors' Report 31 December 2023 Directors’ Report The directors present their report, together with the financial statements, on the Group (referred to hereafter as the 'Group') consisting of Suvo Strategic Minerals Limited (referred to hereafter as the 'Company' or ‘Suvo’) and the entities it controlled at the end of, or during, the half-year ended 31 December 2023. Directors The following persons were directors of Suvo Strategic Minerals Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Mr Aaron Banks Mr Oliver Barnes Dr Agu Kantsler Mr Hugh Thomas Non-Executive Chairman Non-Executive Director Non-Executive Director (appointed 5 September 2023) Managing Director (resigned 30 October 2023) Principal activities The principal activities of the Group during the period were refined kaolin production in Victoria and commercialisation of Intellectual Property (IP) for a geopolymer concrete batching plant and formulations. Review of operations During the half-year ended 31 December 2023, the Company generated $6.04 million in turnover from the sale of 10,135 tonnes of hydrous kaolin. Since returning the Pittong plant back to name-plate processing capacity of 60,000 tonnes per annum, the Company has been focused on strengthening its sales and marketing efforts in Asia to fully leverage this increase in capacity. Accordingly, the Company appointed three key sales personnel, all based in Asia, during H1 FY 2024. This newly appointed team has a combined experience of more than 60 years in the selling and marketing of kaolin having previously worked for large industrial minerals and chemical companies such as Imerys S.A and BASF. The new sales and marketing team has geographically diverse experience and networks that will allow for deeper market penetration, at a lower cost than Suvo’s previous centralised marketing arrangements, and foster closer relationships with regional customers. Also, during H1 FY 2024, Suvo appointed several global chemical trading companies throughout Asia to provide on-the-ground expertise and distribution networks, supporting efficient product delivery and local stock availability. In January 2024, subsequent to the half-year end, the Company received purchase orders from five new customers, after the Pittong hydrous kaolin passed quality and performance tests. Annual hydrous kaolin demand from these new customers totals 730 tonnes, which will generate an additional ~$0.63 million in turnover for the Company. During H1 FY 2024, the Company built a strong pipeline of potential customers across Asia with more than 20 end-users currently testing Suvo’s kaolin for suitability across various industries and applications, some of which occupy industrial-scale end user markets where orders are measured in the thousands of tonnes, with numerous opportunities on the verge of potential conversion into sales orders. Suvo’s research and development efforts to explore new applications for kaolin (e.g. the use of metakaolin in cement manufacture) has resulted in our expansion into geopolymer concrete, a low carbon concrete alternative to traditional concrete made from ordinary Portland Cement (OPC). In October 2023, the Company entered into an agreement with Murdoch University, licensing a pilot-scale geopolymer concrete-batching plant and a low-carbon concrete formulation ‘Colliecrete’. Preliminary results from trials conducted by Murdoch using the geopolymer concrete-batching plant and the Colliecrete formulation indicated a reduction of GHG emissions of around 50% compared to concrete using OPC. In January 2024, Suvo was formally invited by the Sustainability Waste Alliance (SWA) to conduct a demonstration pour of Colliecrete at identified sections on the Bunbury Outer Ring Road Project, the largest road infrastructure project in the history of the South-West of Western Australia. Additionally, subsequent to the half-year end, Suvo signed two separate non-binding Memorandums of Understanding (MOU) with Polvine Pty Ltd (PERMAcast) and Dowsing Group (Dowsing). PERMAcast is Western Australia’s leading supplier of precast and prestressed concrete products for the state’s major infrastructure, oil and gas and mining projects. Dowsing is one of Australia’s leading civil contractors specialising in slipform concrete pavements, barriers, kerbing, footpaths, hardscapes and civil services. The intention of the two separate agreements is to work together to develop low carbon concretes for both PERMAcast and Dowsing for deployment in various end use applications. 1 Suvo Strategic Minerals Limited Directors' Report 31 December 2023 Directors’ Report On 5 September 2023, Dr Agu Kantsler was appointed to the Board as Non-Executive Director. Dr Agu Kantsler B.SC (hons), Ph.D., G.A.I.C.D., FTSE, has over 45 years of experience in the international and Australian upstream oil and gas industry and has spent over 20 years in senior leadership positions and 12 years serving on the boards of several listed and private companies. He is currently the Managing Director of Transform Exploration Pty Ltd and a Non-Executive Director of Central Petroleum Limited. On 30 October 2023, Bojan Bogunovic was appointed as Interim Chief Executive Officer of the Company, following the resignation of Mr Hugh Thomas as Managing Director and Chief Executive Officer. Mr Bogunovic joined the Company as Group Financial Controller in July 2021, shortly after the acquisition of the Pittong Operations from French multinational Imerys S.A. In October 2021, Mr Bogunovic was promoted from Group Financial Controller to Chief Financial Officer. Since July 2023, Mr Bogunovic had also been acting in a joint capacity as Chief Commercial Officer, focusing on the sale and marketing of the Company’s hydrous kaolin throughout the Asia Pacific region. Subsequent to the half-year end, the Company completed successful capital raises which brought in $4.5 million (before costs). Funding from the capital raise will continue to support the ramp up of production at Pittong and accelerate commercialisation of Suvo’s IP for a low carbon geopolymer concrete. Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial half-year. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors Aaron Banks Non-Executive Chairman 15 March 2024 Perth 2 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Suvo Strategic Minerals Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. RSM AUSTRALIA PARTNERS Perth, WA Dated: 15 March 2024 TUTU PHONG Partner Suvo Strategic Minerals Limited Contents 31 December 2023 Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's review report to the members of Suvo Strategic Minerals Limited 5 6 7 8 9 16 17 General information The financial statements cover Suvo Strategic Minerals Limited as a Group consisting of Suvo Strategic Minerals Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Suvo Strategic Minerals Limited’s functional and presentation currency. Suvo Strategic Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Level 11, 40 The Esplanade Perth Western Australia 6000 3610 Glenelg Hwy Pittong Victoria 3360 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 15 March 2024. 4 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Consolidated statement of profit or loss and other comprehensive income Note Revenue from continuing operations Cost of sales Gross profit before depreciation and amortisation Depreciation and amortisation relating to kaolin production Gross (loss)/profit after depreciation and amortisation Consolidated 31 Dec 2023 31 Dec 2022 $ $ 6,038,718 (5,956,533) 82,185 (200,184) (117,999) 5,889,470 (5,719,192) 170,278 (123,006) 47,272 177,543 13,915 171,101 61,751 (268,227) (145,972) (2,255,031) (12,714) (465,915) (147,513) (2,087,307) (1,426) (2,608,485) (2,422,037) - - (2,608,485) (2,422,037) Items that will not be reclassified subsequently to profit or loss - - Items that may be reclassified subsequently to profit or loss - - Other comprehensive income for the half-year, net of tax - - Total comprehensive loss for the half-year (2,608,485) (2,422,037) Loss for the half-year is attributable to: Owners of Suvo Strategic Minerals Limited (2,608,485) (2,422,037) Cents Cents (0.32) (0.32) (0.35) (0.35) 3 Other income Foreign exchange gain Expenses Share-based payments Other depreciation and amortisation expenses Administration and corporate Share of loss of associate accounted for using the equity method Loss before income tax expense Income tax expense Loss after income tax expense for the half-year 10 Other comprehensive income Loss per share for loss attributable to owners of Suvo Strategic Minerals Limited Basic earnings per share Diluted earnings per share The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 5 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Consolidated statement of financial position Note Consolidated 31 Dec 2023 30 June 2023 $ $ Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other financial assets Other Total current assets 1,779,175 1,322,814 1,933,451 158,252 762,239 5,955,931 3,163,638 1,416,028 2,090,431 71,000 787,408 7,528,505 4,684,841 5,953,241 2,207,155 206,533 196,150 2,086,000 15,333,920 4,244,441 5,824,404 2,084,682 341,681 208,864 2,184,233 14,888,305 21,289,851 22,416,810 2,831,792 1,000,000 293,668 632,751 391,082 5,149,293 1,899,963 387,594 808,850 641,161 3,737,568 2,552,809 450,908 3,003,717 113,689 2,567,057 528,648 3,209,394 Total liabilities 8,153,010 6,946,962 Net assets 13,136,841 15,469,848 4 5 6 Non-current assets Property, plant and equipment Mineral interest acquisition and exploration expenditure Mine properties Right-of-use assets Investment in associate Other financial assets Total non-current assets 7 8 9 10 6 Total assets Liabilities Current liabilities Trade and other payables Borrowings Lease liabilities Provisions Interest-bearing liabilities Total current liabilities 11 Non-current liabilities Lease liabilities Provisions Interest-bearing liabilities Total non-current liabilities 12 Equity Issued capital Reserves Accumulated losses 13 14 Total equity 42,237,500 42,230,249 8,033,587 7,765,360 (37,134,246) (34,525,761) 13,136,841 15,469,848 The above statement of financial position should be read in conjunction with the accompanying notes 6 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Consolidated statement of changes in equity Issued capital $ Reserves $ Accumulated losses $ Total equity $ 38,732,317 6,376,923 (26,424,639) 18,684,601 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - (2,422,037) (2,422,037) - - - - Total comprehensive loss for the half-year - - (2,422,037) (2,422,037) Transactions with owners in their capacity as owners: Issue of share capital Share issue costs Share-based payments 2,151,300 (169,405) - 477,590 - 2,151,300 (169,405) 477,590 Balance at 31 December 2022 40,714,212 6,854,513 (28,846,676) 18,722,049 Issued capital $ Reserves $ Accumulated losses $ Total equity $ 42,230,249 7,765,360 (34,525,761) 15,469,848 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - (2,608,485) (2,608,485) - - - - Total comprehensive (loss) for the half-year - - (2,608,485) (2,608,485) Transactions with owners in their capacity as owners: Issue of share capital Share issue costs Share-based payments 7,251 - 268,227 - 7,251 268,227 42,237,500 8,033,587 (37,134,246) 13,136,841 Balance at 1 July 2022 Balance at 1 July 2023 Balance at 31 December 2023 The above statement of changes in equity should be read in conjunction with the accompanying notes 7 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Consolidated statement of cash flows Note Consolidated 31 Dec 2023 31 Dec 2022 $ $ Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest paid Grants received 6,788,489 (7,506,716) 26,967 (160,443) 20,541 6,389,341 (8,163,291) 50,452 (50,225) 24,600 Net cash used in operating activities (831,162) (1,749,123) Cash flows from investing activities Payments for exploration and evaluation Payments for property, plant and equipment Payments for mine properties Payments for investments in associates Other financial assets - term deposits at bank (122,697) (617,639) (145,113) (20,000) (431,036) (1,790,978) (29,968) (220,000) - Net cash used in investing activities (905,449) (2,471,982) Cash flows from financing activities Proceeds from issue of shares Proceeds from exercise of options Payments of share issue costs Proceeds from borrowings Financed equipment Repayment of lease liabilities Repayment of interest-bearing liabilities 7,251 (14,900) 1,000,000 (464,213) (175,990) 2,000,000 74,500 (109,930) 801,353 (201,013) (56,037) Net cash from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents 352,148 (1,384,463) 3,163,638 - 2,508,873 (1,712,232) 6,687,336 - 1,779,175 4,975,104 Cash and cash equivalents at the end of the financial half-year 4 The above statement of cash flows should be read in conjunction with the accompanying notes 8 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Note 1. Material Accounting Policies These general purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Accounting Standard 34 'Interim Financial Reporting'. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. Going Concern The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business. As disclosed in the financial statements, the Group incurred a loss of $2,608,485 and had net cash outflows from operating activities and investing activities of $831,162 and $905,449 respectively for the half-year ended 31 December 2023. The Directors believe that it is appropriate to continue to adopt the going concern basis of preparation due to the successful capital raises which brought in $4.5 million (before costs) subsequent to the half-year ended 31 December 2023 (refer to Note 18). 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. Note 2. Operating segments Identification of reportable operating segments The Group is organised into three operating segments: kaolin production, exploration and evaluation, and corporate. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information is reported to the CODM on a monthly basis. Types of products and services The principal products and services of the kaolin production operating segment are the manufacture and sale of refined kaolin in Australia and overseas. Major customers During the half-year ended 31 December 2023 approximately $2,489,955 (31 December 2022: $2,634,149) of the Group’s external revenue was derived from sales to three major Australian customers. 9 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Operating segment information Corporate Exploration & Evaluation $ Kaolin Production $ 31 Dec 2023 Total $ - - 6,038,718 6,038,718 6,038,718 6,038,718 EBITDA Depreciation and amortisation Interest revenue Finance costs Loss before income tax expense Income tax expense Loss after income tax expense (1,603,909) (112,121) 7,799 (19,989) (1,728,220) (1,728,220) (23,269) (183) (23,452) (23,452) (646,628) (233,852) 64,121 (40,454) (856,813) (856,813) (2,273,806) (346,156) 71,920 (60,443) (2,608,485) (2,608,485) Assets Segment assets 1,465,929 5,952,473 13,871,449 21,289,851 Liabilities Segment liabilities (1,630,921) (6,140) (6,515,949) (8,153,010) Corporate Exploration & Evaluation $ Kaolin Production $ 31 Dec 2022 Total $ - - 5,889,470 5,889,470 5,889,470 5,889,470 EBITDA Depreciation and amortisation Interest revenue Finance costs Loss before income tax expense Income tax expense Loss after income tax expense (1,919,051) (113,477) 13,642 (20,903) (2,039,789) (2,039,789) (678) (367) (1,780) (2,825) (2,825) (232,016) (156,675) 36,810 (27,542) (379,423) (379,423) (2,151,745) (270,519) 50,452 (50,225) (2,422,037) (2,422,037) Assets Segment assets 4,594,249 5,849,419 15,005,116 25,448,784 Liabilities Segment liabilities 824,973 91,778 5,809,984 6,726,735 $ Revenue Sales to external customers Total segment revenue $ Revenue Sales to external customers Total segment revenue 10 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Note 3. Revenue Consolidated 31 Dec 2023 31 Dec 2022 $ $ From continuing operations Revenue from contracts with customers Sale of goods 6,038,718 5,889,470 Revenue from continuing operations 6,038,718 5,889,470 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 31 Dec 2023 31 Dec 2022 $ $ Geographical regions Australia and New Zealand Asia Rest of the World 3,819,367 2,172,958 46,393 3,819,702 1,713,854 355,914 6,038,718 5,889,470 All revenue from contract with customers is recognised at a point in time. Note 4. Cash and cash equivalents Consolidated 31 Dec 2023 30 June 2023 $ $ 1,779,175 Cash at bank 3,163,638 Note 5. Inventories Consolidated 31 Dec 2023 30 June 2023 $ $ Raw materials Packaging Work in progress Finished goods 11 1,128,517 358,985 40,056 405,893 956,144 420,904 114,481 598,902 1,933,451 2,090,431 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Note 6. Other financial assets Consolidated 31 Dec 2023 30 June 2023 $ $ Current Bank card guarantee Rental guarantee Non-current Rehabilitation bond Rental guarantee 60,000 98,252 158,252 40,000 31,000 71,000 2,086,000 2,086,000 2,086,000 98,233 2,184,233 The rehabilitation bond was lodged with the Department of Jobs, Precincts and Regions in Victoria. It serves as surety for compliance with the conditions of the mining licenses relating to rehabilitation. Note 7. Property, plant and equipment Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Land and Buildings $ Leasehold Improvement $ Plant and Equipment $ Total $ Balance at 1 July 2023 Additions Disposals Depreciation expense 461,667 (18,476) 168,108 (10,964) 3,614,666 625,971 (156,131) 4,244,441 625,971 (185,571) Balance at 31 December 2023 443,191 157,144 4,084,506 4,684,841 Note 8. Mineral interest acquisition and exploration expenditure Consolidated 31 Dec 2023 30 Jun 2023 $ $ Mineral interest acquisition and exploration expenditure - at cost 5,953,241 5,824,404 Reconciliations Movements in the carrying amount during the current half-year, are set out below: Exploration and Evaluation $ Balance at 1 July 2023 Additions 5,824,404 128,837 Balance at 31 December 2023 5,953,241 12 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Note 9. Mine properties Consolidated 31 Dec 2023 30 June 2023 $ $ 2,207,155 Mining properties - at cost 2,084,682 Reconciliations Movements in the carrying amount during the current half-year, are set out below: Overburden Asset $ Mining Reserves $ Rehabilitation Asset $ Total $ Balance at 1 July 2023 Additions Change in present value of rehabilitation provision Amortisation expense 113,696 196,257 - 836,635 (10,900) 1,134,351 (48,351) (14,533) 2,084,682 196,257 (48,351) (25,433) Balance at 31 December 2023 309,953 825,735 1,071,467 2,207,155 Note 10. Investment in associate Consolidated 31 Dec 2023 30 Jun 2023 $ $ Investment in associate accounted for using the equity method: Initial investment at cost Share of associate’s loss 220,000 (23,850) 220,000 (11,136) 196,150 208,864 In November 2022, the Company acquired a 26% share in Dingo HPA Pty Ltd (“Dingo”) through a private placement. The Company purchased 220,000 fully paid ordinary shares in Dingo, at an issue price of $1.00 per share ($220,000). This investment in associate was initially recognised at cost, under the equity method, in accordance with Accounting Standards. The carrying amount of the investment has decreased to recognise the Company’s 26% share of the loss generated by Dingo since the date of acquisition. The Company’s 26% share of the loss generated by Dingo during the half-year ended 31 December 2023 was $12,714 (31 December 2022: $1,426). Note 11. Borrowings Consolidated 31 Dec 2023 30 Jun 2023 $ $ 1,000,000 Mortgage loan - On 30 November 2023, the Company obtained debt funding, from private lender Tember Nominees Pty Ltd, attracting an interest rate of 10% and repayable in 12 months. The Company has used its non-core asset, being freehold land it owns at Lal Lal, located in Victoria, as security against the loan. 13 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Note 12. Non-current provisions Consolidated 31 Dec 2023 30 Jun 2023 $ $ Long service leave Rehabilitation 40,820 2,511,989 55,682 2,511,375 2,552,809 2,567,057 Rehabilitation The provision represents the present value of estimated costs for future rehabilitation of land explored or mined by the Group at the end of the exploration or mining activity. Movements in rehabilitation provision Movements in the rehabilitation provision during the current half-year, are set out below: Rehabilitation Provision $ Balance at 1 July 2023 Additional provisions recognised Unwinding of discount 2,511,375 (48,351) 48,965 Balance at 31 December 2023 2,511,989 Note 13. Equity - issued capital Consolidated 31 Dec 2023 30 June 2023 31 Dec 2023 30 June 2023 Shares Shares $ $ 810,513,091 Ordinary shares - fully paid 809,671,424 42,237,500 42,230,249 Issue price $ Movements in ordinary share capital Details Date Shares Balance Shares issued - Options exercised Shares issued - Performance rights exercised 30 Jun 2023 809,671,424 241,667 600,000 Balance 31 Dec 2023 810,513,091 0.030 - 42,230,249 7,251 -1 42,237,500 1 This appears as nil as the value is already fully recognised within equity, in the share-based payments reserve. Note 14. Equity - reserves Consolidated 31 Dec 2023 30 Jun 2023 $ $ 8,033,587 Share based payments reserve 14 7,765,360 Suvo Strategic Minerals Limited Interim Report 31 December 2023 Notes to the financial statements Reconciliations Movements in equity reserves during the current half-year, are set out below: Performance Rights $ Options $ Total $ Balance at 1 July 2023 Share-based payments 1,760,681 252,994 6,004,679 15,233 7,765,360 268,227 Balance at 31 December 2023 2,013,675 6,019,912 8,033,587 Share-based payments reserve The reserve is used to recognise increments and decrements in the fair value of share-based payments. The amounts recognised in relation to performance rights during the period takes into account the probabilities of vesting criteria being met and the expected vesting date, with the unrecognised amount to be expensed over the vesting period. The expense realised in respect to performance rights is intended to reflect the best available estimate of the number of performance rights expected to vest. Note 15. Fair value measurement Fair value hierarchy The method and valuation techniques used for the purpose of measuring fair value are unchanged compared to previous reporting period. The carrying value of financial assets and financial liabilities are considered to be a reasonable approximation of their fair value. There were no transfers between levels during the financial half-year. The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial liabilities. Note 16. Contingent liabilities As at the date of this report there are no claims or contingent liabilities. Note 17. Dividends There were no dividends paid, recommended or declared during the period. Note 18. Events after the reporting period On 15 February 2024, the Company announced that it had received firm commitments for $2.5 million via a share placement to new and existing sophisticated investors at $0.03 per share (the Placement). The Company also announced it was undertaking a share purchase plan (SPP) to raise up to a further $1 million on the same terms as the Placement. The SPP closed on 27 February 2024 and was significantly oversubscribed with $2.663 million in applications received. In recognition of the strong level of shareholder support, the Suvo board of directors (Board) exercised their discretion increasing the SPP offer to $2 million (before costs), resulting in a scale back of $0.663 million, raising in total $4.5 million (before costs). Apart from matters discussed above, no other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial year 15 Suvo Strategic Minerals Limited Directors’ Declaration 31 December 2023 Directors’ Declaration In the directors' opinion: ● the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attached financial statements and notes give a true and fair view of the Group's financial position as at 31 December 2023 and of its performance for the financial half-year ended on that date; 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. Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001. On behalf of the directors Aaron Banks Non-Executive Chairman 15 March 2024 Perth 16 INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF SUVO STRATEGIC MINERALS LIMITED Report on the Half-Year Financial Report Conc