Announcement PDF Talisman Mining Limited ABN 71 079 536 495 Financial report for the half-year ended 31 December 2024 Talisman Mining Limited Half-Year Report 31 December 2024 Corporate Directory Board of Directors Mr Kerry Harmanis Mr Andrew Munckton Mr Brian Dawes Mr Jeremy Kirkwood Mr Peter Benjamin Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Company Secretary Mr Alexander Neuling Registered and Principal Office Ground Floor, Suite 1 33 Colin Street, West Perth Western Australia 6005 Tel: +61 8 9380 4230 Website: www.talismanmining.com.au Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth, Western Australia 6000 Tel: +61 8 9227 7500 Share Registry MUFG Corporate Markets (formerly Link Market Services) Level 12, QV1 Building 250 St Georges Terrace Perth, Western Australia 6000 Tel: +61 8 9211 6670 Securities Exchange Listing Australian Securities Exchange Limited Level 40, Central Park 152-158 St Georges Terrace Perth, Western Australia 6000 ASX code: TLM Talisman Mining Limited Half-Year Report 31 December 2024 Contents Page Review of Operations .................................................................................................................................... 4 Directors’ Report .......................................................................................................................................... 12 Auditor’s Independence Declaration............................................................................................................ 13 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income ........................ 14 Condensed Consolidated Statement of Financial Position ......................................................................... 15 Condensed Consolidated Statement of Changes in Equity………………………………………………….…16 Condensed Consolidated Statement of Cash Flows ................................................................................... 17 Notes to the Condensed Consolidated Financial Statements ..................................................................... 18 Directors’ Declaration .................................................................................................................................. 28 Independent Auditor’s Review Report ......................................................................................................... 29 Talisman Mining Limited Half-Year Report 31 December 2024 Review of Operations Lachlan Copper-Gold Project Talisman’s Lachlan Project consists of four discrete project areas – Central Lachlan, Dandaloo Copper, Hillston Copper-Gold and Elvis Porphyry Copper-Gold projects which combined cover over 6,400km2 of granted exploration tenure in the highly prospective Cobar basin and Junee-Narromine Volcanics mineral belts of NSW (see Figure 1). Regionally the Cobar Basin is a well-established mining district hosting several large long-life gold and base metals operating mines and also hosts several major recent mineral discoveries. Figure 1: Lachlan Copper-Gold Project tenure over magnetics image. Talisman’s exploration efforts in the half-year focused on the Central Lachlan Project testing the northnorthwest trending rift controlling structures along the eastern edge of the basin. Proximity to the margins of major basin faults as well as deep seated regional basement lineament structures and zones of high strain are important factors for mineral deposit formation and Talisman has a meaningful tenure position on this Cobar Basin rift margin. The Company has identified several copper-gold and base metal exploration targets at Central Lachlan. Prospects including the Rip n Tear and Durnings/Kaolin Shaft, continued to be advanced with drilling programs throughout the period ending December 2024 (see Figure 1 and Figure 2). pg. 4 Talisman Mining Limited Half-Year Report 31 December 2024 Figure 2: Durnings area project location plan highlighting prospect locations along the Canbelego-Mineral Hill Volcanic Belt. Significant mineralised positions were intersected at Rip n Tear and Durnings in late 2023 and early 2024 including; • 208m at 1.2% Pb, 9g/t Ag and 0.07% Zn from 40m in the discovery hole MYRCD0002 at Rip n Tear and • 42m at 2.3% Pb, 25.3g/t Ag, 1.3% Zn, 0.4% Cu and 1.93g/t Au from 244m in discovery hole DRRC0006 at Durnings. (ASX:TLM 26 February 2024) Follow up RC and diamond drilling programs at both prospects followed the initial discovery holes. Rip n Tear The Rip n Tear prospect is located approximately 50km north-northwest of Condobolin. A large conductive anomaly was identified at the prospect during the 2022 airborne geophysical program and followed up with a ground based Moving Loop Electromagnetic (MLEM) survey in the first half of 2023 that identified an extensive anomaly. pg. 5 Talisman Mining Limited Half-Year Report 31 December 2024 RC drilling commenced in September 2023 to test the peak chargeable positions within the anomaly with seven RC holes MYRC0001 to MYRC0007. Drilling of a further 16 RC and diamond holes was completed over CY2024. Substantial intersections of low-grade Lead-Silver mineralisation in sedimentary sandstone and siltstone host rock in a hybrid-SEDEX style mineralisation has been encountered over approximately 3.0km strike length. (ASX:TLM 26 February 2024). Notable intersections include: • MYRCD0002 – 208m at 1.2% Pb, 8.9g/t Ag, 0.05% Zn from 40m to 248m. • MYRCDD0003 – 105m at 1.3% Pb, 13.5g/t Ag, 0.08% Zn from 188m to 293m. • MYDD0009 – 86m at 0.8% Pb, 6.6g/t Ag and 0.04% Zn from 100m to 186m. • MYDD0012 – 87m at 0.5% Pb, 5.3g/t Ag and 0.01% Zn from 261m to 348m. • MYRCDD0002W – 156m at 1.3% Pb and 12.6g/t Ag and 0.01% Zn from 148m to 304m including a high-grade section of 10m at 7.41% Pb, 59.2g/t Ag and 0.01% Pb from 294m to 304m. A number of RC holes and diamond core tails were drilled and successfully extended the mineralisation to between 100m and 200m downhole width. In addition, diamond core holes were drilled from surface (MYDD0012 and MYDD0013) to test near surface mineralisation and provide detailed structural data to aid geological interpretation (see Figure 3). Figure 3: Rip n Tear RC drilling over MLEM Geophysical survey image. Durnings The Durnings Project is located approximately 25km north of Condobolin and 10km south of the Mineral Hill mine operated by Kingston Resources (see Figure 4). (ASX:TLM 27 March, 29 April and 7 June 2024) A large conductive anomaly was identified at the prospect during the 2022 airborne geophysical program and followed up with a ground based Gradient Array Induced Polarisation (GAIP) survey in the first half of 2023 that identified an extensive anomaly. pg. 6 Talisman Mining Limited Half-Year Report 31 December 2024 The Durnings prospect was initially drilled with a 2,800m broad spaced RC drilling program in the 2023 halfyear. This drilling program intersected two zones of wide, moderate grade intersections with the lower zone returning a 6m zone of high grade, multi-element mineralisation. Results include: DRRC0006 o 24m at 1.5% Pb, 15.6g/t Ag, 0.2% Zn, 0.02% Cu, 0.04g/t Au from 18m to 42m and; o 42m at 2.3% Pb, 25.3g/t Ag, 1.3% Zn, 0.09% Cu, 0.43g/t Au from 244m to 286m end of hole (eoh) including: ▪ 20m at 3.9% Pb, 45.2g/t Ag, 2.1% Zn, 0.16% Cu and 0.73g/t Au from 260m to 280m ▪ 6m at 10.3% Pb, 126g/t Ag, 3.5% Zn, 0.4% Cu and 1.93g/t Au from 274m to 280m. DRRC0007 o 8m at 0.5% Pb, 2.1g/t Ag, 1.3% Zn, 0.02% Cu, 0.11g/t Au from 166m to 198m. o 28m at 0.4% Pb, 7.8g/t Ag, 0.7% Zn, 0.02% Cu, 0.11g/t Au from 4m to 32m including: DRRC0008 ▪ 10m at 0.5% Pb, 10.8g/t Ag, 1.8% Zn, 0.03% Cu, 0.15g/t Au from 22m to 32m o 30m at 0.4% Pb, 2.7g/t Ag, 0.8% Zn, 0.01% Cu, 0.07g/t Au from 124m to 154m o 4m at 0.1% Pb, 14.1g/t Ag, 0.1% Zn, 0.77% Cu, 0.42g/t Au from 32m to 36m and; o 6m at 0.5% Pb, 5.4g/t Ag, 0.7% Zn, 0.19% Cu, 0.29g/t Au from 74m to 80m: o 10m at 0.9% Pb, 7.1g/t Ag, 2.2% Zn, 0.04% Cu, 0.24g/t Au from 156m to 166m and o 10m at 0.4% Pb, 3.9g/t Ag, 0.7% Zn, 0.01% Cu, 0.39g/t Au from 232m to 242m end of hole. DRRC0009 DRRC0010 Follow up drilling consisted of a further twenty RC and diamond holes (DRRC0011 to DRDD0030) targeting both base metals rich and copper-gold rich structural corridors within the broader Durnings area. Significant results received to date include: DRRC0019 o 7.4m at 6.7% Pb, 137g/t Ag, 2.9% Zn, 0.2% Cu, 0.24g/t Au from 198m to 205.4m and; o 28m at 3.8% Pb, 61.3g/t Ag, 0.7% Zn, 0.90% Cu, 4.03g/t Au from 370m to 398m including: ▪ 10m at 9.9% Pb, 61.3g/t Ag, 1.5% Zn, 1.0% Cu and 7.94g/t Au from 374m to 384m DRDD0023 o 4m at 0.4% Pb, 11.4g/t Ag, 0.6% Zn, 0.5% Cu and 12.6g/t Au from 90m to 94m and o 13m at 2.7% Pb, 18.1g/t Ag, 0.3% Zn, 0.3% Cu and 1.35g/t Au from 65m to 78m. o 17m at 0.1% Pb, 1.5g/t Ag, 0.1% Zn, 0.2% Cu and 0.38g/t Au from 192m to 209m. DRDD0029 pg. 7 Talisman Mining Limited Half-Year Report 31 December 2024 Figure 4: Durnings - Targets over PDIP survey image. Yarindury The Yarindury Project, which consists of a single tenement, EL 9679 is located approximately 15km northeast of Dubbo and is part of the Molong Belt of the Macquarie Arc in central west NSW. It lies approximately 100km north of the world class Cadia Operations owned and operated by Newmont near Orange (see Figure 5). The project is prospective for porphyry style Cu-Au mineralisation. During the period Talisman drilled a single RC/Diamond hole into a large geophysical target at Yarindury. The hole was terminated at 562.7m depth in barren sedimentary cover. Additional geophysics is proposed at the project to identify other shallower targets that warrant drill evaluation. pg. 8 Talisman Mining Limited Half-Year Report 31 December 2024 Figure 5: Macqaurie Arc Targets including Yarindury in the Molong Volcanic Belt and other Junee-Narromine Belt tenure. Future Exploration Activities Central Lachlan Lead-Zinc-Silver-Copper-Gold Project Talisman has prioritised the Durnings project for further testing of the significant potential highlighted in the discovery holes drilled during the 2024 programs. These areas and the testing of the large, additional GAIP anomaly at Durnings East will dominate the exploration efforts for the majority of the first half of 2025. Other prospective targets within the Central Lachlan land package remain to be tested and will be prioritised as results warrant and resources become available. Mabel Creek Copper-Gold Project The Mabel Creek project located approximately 30km north-west of Coober Pedy in South Australia was acquired in 2023 from First Gold P/L. The project covers approximately 1,048 km2 of tenure within the Gawler Craton, Australia’s premier Iron Oxide Copper Gold (IOCG) province. The Gawler Craton is home to some of Australia’s largest copper-gold deposits and producing mines including Olympic Dam, Prominent Hill, Carrapateena and Oak Dam. pg. 9 Talisman Mining Limited Half-Year Report 31 December 2024 The exploration program to date has consisted of data acquisition, integration and interpretation from both the vendor of the project and the Geological Survey of South Australia. In early 2024 Detailed Gravity surveys of the project area and Heritage surveys were completed with the Native Title holders, AMYAC. Initial exploration drilling and ongoing geophysical surveys are anticipated to commence in the March quarter 2025. See Figure 6. Figure 6: Mabel Creek gravity anomaly interpretation and planned drilling targets. Corporate Royalties As previously announced to the ASX 1, Talisman holds an uncapped 1% gross revenue royalty on the sale of iron ore (and other minerals and metals) from Mineral Resources Limited’s (ASX: MIN) (MRL) Wonmunna Iron Ore Mine (Wonmunna) located in the Pilbara region of Western Australia. Iron ore production commenced at Wonmunna in March 2021 and is currently operating at its designed production output of 56 million tonnes per annum (Mtpa). During the reporting period Talisman received cashflows from royalties from iron ore sales at Wonmunna totalling $5.362 million. New Project Opportunities During the reporting period, Talisman’s business development team continued to review potential base and precious metals growth opportunities in Australia and elsewhere with the aim of identifying quality assets with the potential to create long-term shareholder value. Available growth opportunities (regardless of stage of development) in most commodities continue to remain fully valued, and Talisman is adopting a judicious approach to the review of opportunities to ensure only value accretive transactions that have the potential to create long-term shareholder value are pursued. 1 Refer Talisman ASX announcements dated 01 October 2010, 17 February 2011, 15 April/21 May/30 July and 18 October 2021 for full details. pg. 10 Talisman Mining Limited Half-Year Report 31 December 2024 Competent Person’s Statement Information in this half year financial report that relates to Exploration Results and Exploration Targets is based on and fairly represents information and supporting documentation complied by Mr Tim Sharp, who is a member of the Australasian Institute of Geoscientists. Mr Sharp is a full-time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Sharp consents to the inclusion in this report of all technical statements based on his information in the form and context in which they appear. No new information that is considered material is included in this report. All information relating to exploration results has been previously released to the market and is appropriately referenced in this document. JORC tables are not considered necessary to accompany this report. Forward-Looking Statements This report may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Talisman Mining Ltd.’s current expectations, estimates and assumptions about the industry in which Talisman Mining Ltd operates, and beliefs and assumptions regarding Talisman Mining Ltd.’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Talisman Mining Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based. pg. 11 Talisman Mining Limited Half-Year Report 31 December 2024 Directors’ Report The Directors of Talisman Mining Limited (the Company) submit the financial report of the consolidated entity (referred to hereafter as the Group) for the half-year ended 31 December 2024. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows: Directors The names of Directors who held office during or since the end of the half-year and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated. Mr Kerry Harmanis Mr Andrew Munckton Mr Jeremy Kirkwood Mr Brian Dawes Mr Peter Benjamin Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Principal Activities The principal activity of the Group during the course of the half-year was exploration for base and precious metals, including copper, copper-gold, gold and nickel. Financial Performance and Financial Position During the half-year the Group reported a loss after tax of $0.08 million (half-year to 31 December 2023: loss after tax $1.179 million). The Group spent $3.295 million on exploration expenditure in New South Wales and South Australia for continuing operations during the half-year (half-year to 31 December 2023: $4.081 million). As at 31 December 2024 the Group had net assets of $8.048 million (30 June 2024: $7.963 million) including $5.596 million of cash and cash equivalents (30 June 2024: $4.932 million). Rounding Off of Amounts The Company has applied the relief available to it in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, and accordingly certain amounts included in this half-year report have been rounded off to the nearest $1,000 (where rounding is applicable). The Company is an entity to which the legislative instrument applies. 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 half-year financial report. This Independence Declaration is set out on the following page and forms part of this Directors’ Report for the half-year ended 31 December 2024. This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001. ……………………………………………….. Andrew Munckton Managing Director 21 February 2025 pg. 12 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated financial report of Talisman Mining 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 21 February 2025 M R Ohm Partner pg. 13 Talisman Mining Limited Half-Year Report 31 December 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Half-Year Ended 31 December 2024 Note Consolidated 31 Dec 24 $ `000 Consolidated 31 Dec 23 $ `000 Continuing operations Revenue Other income Employee benefits expense Exploration expenditure expensed as incurred Administrative expenses Legal and corporate advisory expense Finance costs Occupancy expenses Net fair value loss on investments Depreciation and amortisation expense Loss before income tax expense Income tax expense Loss after tax from continuing operations 2 2 2 3 8 Net loss for the period Other comprehensive income for the period, net of tax Total comprehensive loss for the period 101 4,336 (637) (3,295) (245) (221) (3) (4) (15) (97) (80) (80) 145 4,222 (929) (4,081) (275) (131) (2) (3) (25) (100) (1,179) (1,179) (80) (80) (1,179) (1,179) (0.04) (0.04) (0.63) (0.63) Earnings per share Basic loss per share (cents per share) Diluted loss per share (cents per share) 5 5 The accompanying notes form part of these financial statements. pg. 14 Talisman Mining Limited Half-Year Report 31 December 2024 Condensed Consolidated Statement of Financial Position As at 31 December 2024 Note Consolidated 31 Dec 24 $ `000 Consolidated 30 Jun 24 $ `000 Assets Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets 5,596 2,223 7,819 4,932 3,007 7,939 Non-Current Assets Other receivables Property, plant and equipment Right-of-use assets Deferred exploration and evaluation expenditure Financial assets Total Non-Current Assets Total Assets 272 526 105 300 235 1,438 9,257 282 516 139 300 250 1,487 9,426 964 139 66 1,169 947 368 66 1,381 40 40 1,209 73 9 82 1,463 8,048 7,963 32,222 631 (24,805) 8,048 32,222 466 (24,725) 7,963 Liabilities Current Liabilities Trade and other payables Provisions Lease liabilities Total Current Liabilities Non-Current Liabilities Lease liabilities Provisions Total Non-Current Liabilities Total Liabilities 7 3 8 9 9 Net Assets Equity Issued capital Reserves Accumulated losses Total Equity 4 4 The accompanying notes form part of these financial statements. pg. 15 Talisman Mining Limited Half-Year Report 31 December 2024 Condensed Consolidated Statement of Changes in Equity For the Half-Year Ended 31 December 2024 Consolidated Balance at 1 July 2023 Issued Capital Accumulated Losses Share-based Payments Reserve Total Equity $ `000 $ `000 $ `000 $ `000 32,222 (21,839) 332 10,715 Loss for the period - (1,179) - (1,179) Total comprehensive loss for the period - (1,179) - (1,179) Recognition of share-based payments - - 119 119 Unlisted options lapsed - 175 (175) - Balance at 31 December 2023 32,222 (22,843) 276 9,655 Balance at 1 July 2024 32,222 (24,725) 466 7,963 Loss for the period - (80) - (80) Total comprehensive loss for the period - (80) - (80) Recognition of share-based payments - - 259 259 Unlisted options forfeited/lapsed - - (94) (94) Balance at 31 December 2024 32,222 (24,805) 631 8,048 The accompanying notes form part of these financial statements. pg. 16 Talisman Mining Limited Half-Year Report 31 December 2024 Condensed Consolidated Statement of Cash Flows For the Half-Year Ended 31 December 2024 Note Consolidated Consolidated 31 Dec 24 31 Dec 23 $ `000 $ `000 Inflows/(Outflows) Cash flows from operating activities Payments to suppliers and employees (1,200) (1,465) Payments for exploration and evaluation (3,155) (4,220) Transactions costs related to borrowings (3) (2) Interest received 101 145 Government grants - 55 Royalty receipts 5,362 3,794 Net cash provided by / (used in) operating activities 1,105 (1,693) (73) (19) - (500) - 9 Transfer to security deposits (335) (88) Net cash used in investing activities (408) (598) Repayment of lease liabilities (33) (39) Net cash used in financing activities (33) (39) Net increase / (decrease) in cash held 664 (2,330) Cash and cash equivalents at the beginning of the period 4,932 9,756 Cash and cash equivalents at the end of the period 5,596 7,426 Cash flows from investing activities Payments for property, plant and equipment Payments for investments Proceeds from disposal of tenements 8 Cash flows from financing activities The accompanying notes form part of these financial statements. pg. 17 Talisman Mining Limited Half-Year Report 31 December 2024 Notes to the Condensed Consolidated Financial Statements For the Half-Year Ended 31 December 2024 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES Statement of compliance These half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. The financial statements comprise the consolidated condensed half-year financial statements for the Group. For the purposes of preparing the consolidated financial statements, the Group is a for-profit entity. The half-year financial report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2024 and any public announcements made by the Company and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. The interim financial statements were authorised for issue on 21 February 2025. Basis of preparation The half-year financial report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated under the option available to the Company under ASIC Legislative Instrument 2016/191. The Company is an entity to which the class order applies. For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period. Accounting policies and methods of computation The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half-year reporting period except for the impact of the new Standards and Interpretations effective 1 July 2024 as described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. Adoption of new and revised standards New Standards and Interpretations applicable for the half year ended 31 December 2024 In the half-year ended 31 December 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current reporting period. The Directors have determined that there are no material impacts of the new and revised Standards and Interpretations on the Group. Standards and Interpretations on issue not yet adopted The Directors have also reviewed all of the new and revised Standards and Interpretations on issue not yet adopted for the period ended 31 December 2024. As a result of this review the Directors have determined that there are no material impacts of the Standards and Interpretations on issue not yet adopted on the Group and, therefore, no change is necessary to Group accounting policies. pg. 18 Talisman Mining Limited Half-Year Report 31 December 2024 Significant accounting judgments and key estimates The preparation of interim financial reports requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. In preparing this interim report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2024. Going concern The interim financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. 2. REVENUE AND EXPENSES Revenue Consolidated Half-year ended 31 Dec 24 $ `000 Consolidated Half -year ended 31 Dec 23 $ `000 101 101 145 145 Consolidated Half-year ended 31 Dec 24 $ `000 Consolidated Half -year ended 31 Dec 23 $ `000 4,334 2 4,336 4,162 60 4,222 Profit for the period includes the following revenue: Bank interest Total revenue Other income Profit for the period includes the following other income: Royalty income(i) Other income Total other income (i) Royalty income represents the right to receive revenues from metals produced and sold by the operator of the mines in which the Group owns a royalty interest and are generally structured as a percentage of the gross revenue received by the producer for metals sold. The Group records revenue when control of the metals sold passes from the producer to the purchaser under the producers’ relevant sales contracts. Other Expenses Consolidated Half-year ended 31 Dec 24 $ `000 Consolidated Half -year ended 31 Dec 23 $ `000 472 165 637 810 119 929 Profit for the period includes the following expenses: Employee benefits Other employee benefits Non-cash share-based payment expenses Total employee benefits pg. 19 Talisman Mining Limited Half-Year Report 31 December 2024 3. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Consolidated Half-year ended 31 Dec 24 $ `000 Consolidated Half -year ended 31 Dec 23 $ `000 Acquisition costs carried forward in respect of areas of interest in the following phases: Exploration and evaluation phase – at cost Balance at beginning of the period Expenditure incurred Exploration expensed as incurred 300 3,295 3,595 (3,295) 300 9,602 9,902 (9,602) 300 300 Balance at end of the period The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on the successful development and commercial exploitation or sale of the respective areas. Project Expenditure expensed in the period 31 Dec 24 $ `000 $ `000 Life to date project expenditure expensed Lachlan Copper-Gold Lucknow Gold Mabel C