Empire Resources : Half Year Accounts

EMPIRE RESOURCES LIMITED

ABN 32 092 471 513

Interim Report

31 December 2023

EMPIRE RESOURCES LIMITED

31 DECEMBER 2023

Table of Contents

	Page
	Number
Corporate Information	2
Directors' Report	3
Condensed Consolidated Statement of Profit or loss and	6
other Comprehensive Income
Condensed Consolidated Statement of Financial Position	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Condensed Interim Financial Statements	10
Directors' Declaration	16
Auditor's Independence Declaration	17
Independent Auditor's Review Report	18

1

EMPIRE RESOURCES LIMITED

31 DECEMBER 2023

CORPORATE INFORMATION

DIRECTORS

Michael Ruane - Chairman

Sean Richardson - Managing Director

Jeremy Atkinson - Non-Executive Director

COMPANY SECRETARY

Bianca Taveira

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS

159 Stirling Highway

Nedlands 6009

Western Australia

Phone	[phone]
Email	[e-mail]
Website	www.resourcesempire.com.au
ABN	32 092 471 513

SHARE REGISTRY

Automic Group

Level 5

191 St Georges Terrace

Perth 6000

Western Australia

AUDITORS

HLB Mann Judd (WA Partnership)

Level 4

130 Stirling Street

Perth 6000

Western Australia

SECURITIES EXCHANGE LISTING

The Company is listed on the Australian Securities Exchange Limited. Home Exchange Perth

ASX Code: Shares ERL

2

EMPIRE RESOURCES LIMITED

DIRECTORS' REPORT 31 DECEMBER 2023

Directors' Report

Your directors submit the interim report on Empire Resources Limited (the "Company") and its controlled entity ("the Group") for the half-year ended 31 December 2023. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The directors of the Company at any time during or since the end of the half-year were:

Michael Ruane

Sean Richardson

Jeremy Atkinson

Review of Operations and Exploration Activities

The Group's loss for the half-year ended 31 December 2023 was $579,616 (2022: $727,484) primarily as a

result of exploration expense of $264,191 (2022: $483,341).

During the period the principal activities of the Group consisted of mineral exploration and evaluation of properties in Australia. There has been no significant change in these activities during the financial period.

During the half year the Company carried out the following activities:

Penny's Gold Project (WA)

The Penny's Gold Project is located 45km east of Kalgoorlie, Western Australia within the north-northwest trending Gindalbie greenstone belt consisting of a sequence of mafic-ultramafic volcanic rocks with intercalated horizons of felsic volcanic rocks and metasediments. The sequence has been subjected to multiple deformation events resulting in significant folding, pronounced foliation, and a northerly plunging mineral lineation. To the east of the project is the GMQ shear where subsidiary structures are common and locally appear to influence spatial distribution of gold mineralisation, particularly where structures intersect or bifurcate. Outcrop within the project area is poor with the regolith dominated by a deeply dissected laterite weathering profile and the subsequently derived colluvial products.

Gold mineralisation at Penny's Gold project occurs within a lower order northwest trending shear that intersects a northerly trending structure. This structure is interpreted to continue to the north through the project area. To the east of this structure and within the project area lie multiple northerly and northwest trending structures interpreted from reprocessed aeromagnetic data.

Drill planning and progressive rehabilitation of historical drilling sites was undertaken during the half year at the Penny's Find Gold Project.

Yuinmery Project (Cu-Au)

The Yuinmery Copper-Gold project is located in the Mid-West region of Western Australia and consists of six granted tenements, two mining and four exploration, for a total area of 106.7 km2. The project has a current JORC 2012 Resource of 2.52Mt @ 1.31% Cu, 0.49g/t Au and 1.76g/t Ag using a 0.5% Cu cut-off.

The Yuinmery project area covers the eastern portion of the Archaean Youanmi greenstone belt with rock types consisting largely of mafic and ultramafic volcanics with altered chloritic felsic and intermediate volcanic units. The volcanic units contain a number of intercalated strongly sulphidic cherty sediments, which are host to Volcanic Massive Sulphide (VMS) copper-gold mineralisation. The project area lies between the Youanmi Shear zone (western boundary) and the Yuinmery Shear zone (eastern boundary) with the southern area covering the southern closure of a northerly plunging syncline.

Empire's improved understanding of the geology, alteration characteristics and structure at Yuinmery, paired with discovery of new Cu-Au,Cu-Ni and PGM occurrences have now expanded the Company's opportunities to target previously untested areas. Of significance is the evolution of Empire's conceptual models of VMS deposits, layered PGM occurrences and orogenic gold mineralisation used to target exploration.

Empire geological team collated, catalogue and check logged historical drill core from A-Zone during the half year. Additional physical data was also collected during this process, including the collection and measurement of specific gravity readings. The additional physical data will supplement existing chemical, geophysical and geological data to assist in the assessment for the potential of resource growth at A-Zone to contribute to the existing project Resource endowment. Planning for future physical data test work and additional drill campaigns to test the extents of this near surface mineralisation up-dip to the west and along strike to the north is on-going.

3

EMPIRE RESOURCES LIMITED

DIRECTORS' REPORT 31 DECEMBER 2023

Empire assessed the use of modern geophysical techniques that have deep penetrating capabilities. The technologies have the potential to discriminate conductive mineralisation and low grade disseminated mineralization. Modern geophysical technologies, combined with the Company's existing extensive geological datasets including magnetics, drill core, geological mapping and geochemistry, will be deployed to detect deep conductive bodies beyond the capabilities of traditional geophysical techniques.

Progressive rehabilitation of historical drill sites was also undertaken at the Yuinmery Project during the half year.

Barloweerie Project (Zn-Pb-Ag-Au-Cu)

The Company has one granted exploration licence and three exploration tenements in application. The total package is 533km2 and is located approximately 155km west of Cue, WA.

The exploration licences cover part of the Barloweerie greenstone belt where historical exploration discovered highly anomalous zinc, lead, silver, gold and copper mineralisation in a volcanogenic massive sulphide (VMS) setting. The Barloweerie Project has had limited modern exploration since 1987 when strong mineralisation was encountered in RC and diamond drilling, including:

• 5m @ 4.8% Zn from 38m (SDH34)
• 1m @ 3.9% Pb from 15m (SDH19)
• 5m @ 100.0g/t Ag from 28m (SDH31)
• 2m @ 0.58% Cu from 19m (SDP8)

The Empire geological team visited the Barloweerie project during the half year period to assess geological environment and site access conditions in preparation for planned drilling of the B1 target. Planning is ongoing and submission of the statutory Programme of Works (PoW) will occur at the completion of planning and stakeholder consultation.

Nanadie Project (Cu-Au)

The Company has three granted exploration licence totalling 127.3km2 located approximately 65km east of Meekatharra, WA.

The Nanadie Copper-Gold Project partially overlies the Barrambie Greenstone Belt which consists of a 1-4km wide sequence of strongly sheared chlorite-quartz-muscovite schists, amphibolites, BIF's and ultramafics. Much of the tenement is covered by aeolian sand, sheetwash and calcrete.

Empire's Nanadie Copper-Gold Project lies immediately along strike from Cyprium Metals Limited (ASX:CYM) Nanadie Well Copper Project. Cyprium's Nanadie Well Copper Project has a JORC 2004 Inferred Resource of 40.4Mt @ 0.40% Cu & 0.10g/t Au containing 162,000 tonnes of copper and 130,000 oz of gold (refer to ASX:CYM "Nanadie Well Mineral Resource Estimate" 19 July 2022).

The sequence hosting the Nanadie Well deposit is interpreted to continue north into Empire's tenure. A regional shear, informally known as the Nanadie Well Regional Shear traverses the project from north to south. Several geochemical and geophysical anomalies have been identified along the Nanadie Well Regional Shear that warrant further investigation.

INVESTMENTS

Penny's Find Royalty

Empire is entitled to royalty payments on gold produced from the Penny's Find Gold Mine to the extent of 5% of gold recovered up to 50,000 oz and 2.5% on gold produced above that amount. Empire is also entitled to milestone payment obligations of $200,000 of commencement of mining plus $200,000 upon first gold pour. The Penny's Find Gold Mine is now 100% owned by Horizon Minerals Ltd (ASX:HRZ).

On 29 December 2023, Horizon Minerals announced a JORC2012 complaint Resource update at the Penny's Find Gold Project of 429kt @ 4.57g/t Au for 63,000oz. This represents a 46% increase in global ounces. Of significance, this updated Resource reportedly contains 305kt @ 5.19g/t Au for 51,000oz within Indicated Resource category.

Horizon Minerals states that feasibility studies to develop maiden Ore Reserves are expected in the June Quarter of 2024 with a development decision to be made shortly thereafter. Empire looks forward to further development of the Penny's Find Gold Mine throughout 2024.

4

EMPIRE RESOURCES LIMITED

DIRECTORS' REPORT 31 DECEMBER 2023

Gnaweeda Royalty

Empire retains a 1% gross revenue royalty on tenement E51/1995 owned by Great Boulder Resources (ASX:GBR). Empire notes that Great Boulder have been particularly active in the region at their Side Well Gold Project which is proximal to E51/1995. Empire looks forward to seeing progress at Gnaweeda under the stewardship of Great Boulder's accomplished exploration team.

Diversity Royalty

Empire retains a 1% net smelter royalty on tenement E57/1202 owned by Diversity Resources Pty Ltd (Diversity). The tenement forms a part of Diversity's Youanmi Lithium Project. Empire looks forward to seeing progress on tenement E57/1202 under Diversity's stewardship.

CORPORATE ACTIVITIES

Business Development

The Company continues to assess investment and project acquisition opportunities that suit the nature of the Company's current business activities. The Company assessed several prospective opportunities during the half year that had potential to be value accretive to Empire's business.

The Company has elected to progress assessment of several prospective opportunities into 2024. While these opportunities remain materially incomplete, the Company is encouraged by their potential and remains enthusiastic about progressing them towards a favourable outcome.

Dividends

No dividends have been paid during the period and no dividends have been recommended by the directors.

Events subsequent to reporting date

No matter or circumstance has arisen, since the end of the financial half year, which significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial periods.

Auditor's Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This written Auditor's Independence Declaration is set out on page 17 and forms part of this directors' report for the half-year ended 31 December 2023.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s306(3) of the Corporations Act 2001.

_________________

Michael Ruane Director

Perth, Western Australia

14 March 2024

5

EMPIRE RESOURCES LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

Consolidated

	Note
Interest income
10
Other income

Depreciation expense

Exploration expense

Business development expense

Legal expense

Employee benefits expense

Directors' fees expense

Accounting expense

ASX expense

Corporate relations expense

Insurance expense

Other expenses

6 months ended

31/12/2023

$

5,225

110

-

(264,191)

-

(9,726)

(87,721)

(36,000)

(45,061)

(21,686)

(45,796)

(21,201)

(53,569)

6 months ended

31/12/2022

$

3,754

20,000

(641)

(483,341)

(12,697)

-

(84,504)

(36,000)

(37,140)

(29,869)

(2,000)

(22,223)

(42,823)

Loss before income tax

Income tax benefit

Net loss

Other comprehensive income, net of tax Total comprehensive loss

(579,616)	(727,484)
-	-
(579,616)	(727,484)
-	-
(579,616)	(727,484)

Basic and diluted loss per share (cents per share)

11

(0.05)

(0.07)

The accompanying notes form part of these financial statements.

6

EMPIRE RESOURCES LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

ASSETS	Note
CURRENT ASSETS	5
Cash and cash equivalents
Trade and other receivables	6
Other financial assets
Total Current Assets
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	7
Total Current Liabilities

TOTAL LIABILITIES
NET ASSETS
EQUITY	8
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY

Consolidated

31/12/2023	30/06/2023
$	$
447,316	1,013,756
39,374	17,776
10,000	10,000
496,690	1,041,532
496,690	1,041,532

171,458 136,684

171,458 136,684

171,458 136,684

325,232 904,848

27,352,416 27,352,416

1,802,246 1,802,246

(28,829,430) (28,249,814)

325,232 904,848

The accompanying notes form part of these financial statements.

7

EMPIRE RESOURCES LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

			Consolidated
		Issued	Accumulated	Option
		Capital	Losses	Reserves	Total
		$	$	$	$
Balance at 1 July 2022	26,878,268	(26,825,664)	1,802,246	1,854,850
Loss for the half year	-	(727,484)	-	(727,484)
Other comprehensive income	-	-	-	-
Total comprehensive loss for the half year	-	(727,484)	-	(727,484)
Shares issued during the half year	520,540	-	-	520,540
Equity issue expenses	(42,778)	-	-	(42,778)
Balance at 31 December 2022	27,356,030	(27,553,148)	1,802,246	1,605,128
Balance at 1 July 2023	27,352,416	(28,249,814)	1,802,246	904,848
Loss for the half year	-	(579,616)	-	(579,616)
Other comprehensive income	-	-	-	-
Total comprehensive loss for the half year	-	(579,616)	-	(579,616)
Balance at 31 December 2023		27,352,416	(28,829,430)	1,802,246	325,232

The accompanying notes form part of these financial statements.

8

EMPIRE RESOURCES LIMITED AND CONTROLLED ENTITY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

		Note		Consolidated
			31/12/2023	31/12/2022
Cash Flows from Operating Activities				$	$
Receipts from customers				110	110,000
Payments for exploration and evaluation expenditure				(289,445)	(525,893)
Payments to employees and suppliers				(282,330)	(269,121)
Interest received				5,225	3,754
Net cash outflow from operating activities	12
	(566,440)	(681,260)
Cash Flows from Investing Activities
Proceeds from sale of tenement				-	20,000
Net cash inflow from investing activities
			-	20,000
Cash Flows from Financing Activities
Proceeds from issue of equity securities				-	520,540
Equity securities issue costs				-	(42,778)
Net cash inflow from financing activities
			-	477,762
Net decrease in cash held				(566,440)	(183,498)
Cash at the beginning of the period				1,013,756	1,846,633
Cash at the end of the period	5
	447,316	1,663,135

The accompanying notes form part of these financial statements.

9