Announcement PDF Interim Financial Report 30 June 2023 ABN 48 002 678 640 cypriummetals.com arcexploration.com.au CYPRIUM METALS LIMITED 0 CONTENTS PAGE Corporate Directory 1 Overview 2 Directors’ Report 3 Auditor’s Independence Declaration 11 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 12 Condensed Consolidated Statement of Financial Position 13 Condensed Consolidated Statement of Changes in Equity 14 Condensed Consolidated Statement of Cash Flows 15 Notes to the Condensed Consolidated Interim Financial Report 16 Directors’ Declaration 24 Independent Auditor’s Review Report 25 CORPORATE DIRECTORY Directors Gary Comb (Chairman, Non-Executive Director) Barry Cahill (Managing Director) John Featherby (Non-Executive Director) Auditors HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street Perth WA 6000 Company Secretary Wayne Apted Website www.cypriummetals.com Registered Office & Principal Place of Business Level 1, 437 Roberts Road Subiaco WA 6008 Telephone: +61 8 6374 1550 Share Registry Automic Level 5, 126 Phillip Street Sydney NSW 2001 Telephone: 1300 288 664 or +61 2 9698 5414 Securities Exchange Australian Securities Exchange ASX Code: CYM CYPRIUM METALS LIMITED 1 Overview Cyprium Metals Limited (ASX: CYM) (“Cyprium”) is an ASX listed Australian copper company. Cyprium has a vision to become a significant mid-tier copper producer with a multi–asset strategy set to capitalise on the global electrification thematic. The Company’s strategy is to acquire, develop, operate and explore mineral resource projects using modern responsible methods to minimise environmental impact and optimise resource recovery and utilisation. Cyprium will make use of past investment to minimise capital intensity and lower risk to maximise the risk adjusted value of its projects. Cyprium owns a high-quality portfolio of West Australian copper development projects in the Paterson and Murchison regions, with a total of +1.6Mt of contained copper in JORC 2012 Mineral Resources (“MRE”) across its projects, comprising: • Nifty Copper Mine (100%) with a 2012 JORC Mineral Resource of 940,200 tonnes of contained copper; • Maroochydore Copper Project (100%) with a shallow 2012 JORC Mineral Resource of 486,000 tonnes of contained copper; • Paterson Exploration Project (100%, diluting to 30%), a highly prospective tenement package on which IGO Ltd (ASX: IGO) is spending A$32 million over 6.5 years to earn-in up to 70%; • Murchison Copper Project, an early-stage development opportunity that collectively refers to the: o Cue Copper Project (80%), containing a smaller scale, high grade copper mineral resource of 51,500 tonnes contained copper; and o Nanadie Well Copper Project (100%), containing a larger scale polymetallic orebody with a lower grade copper mineral resource of 162,000 tonnes contained copper. All of Cyprium’s copper development projects MRE’s are shallow, open in multiple directions and at depth, giving good potential to substantially increase the current resource endowment. Cyprium is focussed on a business plan to develop a large open pit mine at Nifty. Initially to provide ore to an existing heap leach SX-EW operation and to retreat the current heap leach pads. The restart of the existing copper concentrator to treat open pit sulphide material will commence once technical studies and approvals have been obtained for the larger operating footprint expected within 4 years. CYPRIUM METALS LIMITED 2 DIRECTORS’ REPORT The Directors present their report for Cyprium Metals Limited (“CYM”, “Cyprium” or “the Company”) and its subsidiaries (“the Group”) for the 6 months ended 30 June 2023. All amounts are expressed in Australian Dollars unless otherwise stated. DIRECTORS The persons who were directors of CYM during the half-year and up to the date of this report are:  Gary Comb (Chairman, Non-Executive Director)  Barry Cahill (Executive Director)  Nicholas Rowley (Non-Executive Director) – resigned April 2023  John Featherby (Non-Executive Director) – appointed April 2023 REVIEW OF OPERATIONS The Company has projects in the Murchison and Paterson regions of Western Australia, that are host to a number of base metals deposits with copper and gold mineralisation. Figure 1 | Location of Murchison and Paterson Projects CYPRIUM METALS LIMITED 3 Since 2019, the Company’s focus has been to grow to a multi-asset, mid-tier copper producing Company by advancing mid to late-stage Australian based copper projects, which have the potential for development into operational copper mines. Progress has continued after completion of the Nifty Copper Project Restart Study including: • • • • • Expand CYM’s mineral resource inventory to over 1.6 million tonnes of contained copper: o Increasing the Nifty mineral resource estimate to over 940,000 tonnes contained copper, which excludes the copper contained within the existing heap leach pads; o Release of the Nanadie Well mineral resource estimate of over 160,000 tonnes contained copper; Obtaining all of the approvals required at present for the Nifty Copper Project restart; Completion of further metallurgical optimisation testwork to improve the robustness of the Nifty Copper Project Restart Study; Completion of pre-development refurbishment, infrastructure upgrades, site clean-up and operational readiness activities at Nifty; and Continuation of drilling programmes at Nifty, Maroochydore, and Murchison Copper Projects. Considerable global market volatility has been experienced from mid-2022 which resulted in declines in commodity prices (including copper), weaker AUD/USD exchange rates, increased inflationary pressures and rising interest rates, adversely affecting global debt and equity markets. The unfavourable market conditions inevitability led to a deterioration in investment market sentiment, which impacted the Nifty financing process from the second half of 2022. As a consequence of the Senior Secured Bond Issue not proceeding during the first quarter of 2023, the Company requested the ASX for a voluntary suspension of CYM securities whilst the Company undertook a strategic review. NIFTY STRATEGY The Company’s priority is to restart the Nifty operation with lower capital intensity and risk by developing a largescale open pit mine utilising the extensive sunk capital infrastructure. The Nifty development strategy includes the integration of a Copper Oxide Heap Leach SX-EW starter open pit operation that will be complemented by the larger scale sulphide open pit, which together is expected to provide a significant +15-year mine life based on +900,000 tonne contained copper mineral resource. Cyprium finalised a detailed Restart Study for the Oxide Heap Leach starter operation and is refreshing the cost inputs (refer to CYM ASX announcement “Nifty Copper Project Restart Study” dated 11 March 2022). The Company is concurrently completing a technical study which will lead into a detailed open pit life of mine study, to integrate the oxide heap leach with the large sulphide resource inventory. This will reflect the large scale and longer life of the Nifty project and demonstrate the economic metrics of the larger scale open pit mine. Nifty has substantial infrastructure already in place to treat both oxide and sulphide mineral inventory. The integrated business plan for Nifty is expected to produce a long-life production profile with two product streams which will provide a lower risk operating approach with maximum processing flexibility. This plan is expected to ultimately produce annualised production between 48,000 to 65,000 tpa of copper production.1 It is anticipated that the Oxide Heap Leach SX-EW operation will produce approximately 20,000 - 25,000 tpa of copper cathode for more than 6 years with expected additional oxide feed from the larger open pit.1 The Oxide leach SX-EW project is expected to provide the funding to restart the Sulphide Concentrator. The Concentrator is expected to produce CYPRIUM METALS LIMITED 4 between 28,000 tpa (2.8Mtpa) and 40,000 tpa (4.0 Mtpa) of copper in concentrate. 1 These assets support a long mine life project in excess of 15 years.1 Nifty’s prospectivity is excellent and the mineral inventory is relatively shallow, is open along strike in multiple directions and at depth, giving good potential to increase the current resource endowment. In addition, Cyprium’s other exploration assets at Maroochydore and in the Murchison represent an attractive portfolio of exploration projects that will over the next year will be assessed and reviewed for additional expenditure along with the commencement of the development of Nifty. These projects together with Nifty, contain more than 1.6 million tonnes of contained copper. PLACEMENT AND ENTITLEMENT OFFER The Company is undertaking capital raising via a placement and a proposed pro rata non‐renounceable entitlement offer to raise up to approximately $29 million before costs (“Equity Raising”). The Company has received firm commitments in respect of a conditional placement to issue approximately 600 million new shares (“Placement Shares”) at an offer price of $0.04 per share (“Offer Price”) to raise $24 million (“Placement”) from sophisticated and institutional investors, which received shareholder approval at a General Meeting (“General Meeting”) on 7 September 2023. The Placement was strongly supported by sophisticated and professional investors, including numerous new and existing high quality domestic and offshore natural resources focused institutions. The investor support for the Placement provides a strong endorsement of Cyprium’s strategy to restart the Nifty operation as a long life integrated large scale open pit mine. Leading private equity firm and existing shareholder, Pacific Road Capital Management (“PRCM”), has agreed to subscribe for approximately A$4.05 million in the Placement, which will result in them holding a 9.9% interest in the Company post-Placement. The pro rata entitlement offer is non-renounceable to issue up to 125 million new shares (“Entitlement Shares”) at the Offer Price, representing 1 new share for every 5.84 shares held by eligible shareholders on the record date of 18 August 2023 to raise up to $5 million (“Entitlement Offer”), which closed on 7 September 2023 (“Closing Date”). The Entitlement Offer included a top up facility under which eligible shareholders who take up their full entitlement had the opportunity to apply for additional shares from a pool of those not taken up by other eligible shareholders (“Top Up Facility”). In addition to the Top Up Facility, there will also be a general shortfall offer pursuant to which the Company may place any shares to non-eligible shareholders within 3 months from the Closing Date of the Entitlement Offer. Each participant in the Placement and Entitlement Offer will receive 1 free attaching option for every 2 Shares to be issued under the Placement and Entitlement Offer (“Options”). The Options will be exercisable at $0.06 each, on or before 31 December 2024. A Shortfall Agreement has been entered into with Nebari Natural Resources Credit Fund II, LP (also refer to Secured Loan Agreement below) to take $500,000 of any shortfall under the Entitlement Offer at an issue price of $0.04 per Share (with free attaching 1:2 Options at $0.06 per option) pursuant to the Shortfall Offer (“Shortfall Shares”). In addition, the Board has received interest to take a substantial portion of the shortfall. Production targets based on internal technical studies and past external studies (refer to CYM ASX announcement “Nifty Copper Project Restart Study” dated 11 March 2022, MLX ASX announcement “Nifty Scoping Study Identifies Long Life Open Pit with Positive Economics”, dated 11 June 2020 and CYM ASX announcement “AGM Presentation”) The Company confirms that all material assumptions underpinning the production targets continue to apply and have not materially changed. 1 CYPRIUM METALS LIMITED 5 USE OF FUNDS AND LIFTING OF VOLUNTARY SUSPENSION The Company has requested that the ASX lifts the voluntary suspension of trading in its Shares following the General Meeting and the issue of the Shares under the Equity Raising. Reinstatement to trading on the ASX will be subject to ASX conditions as outlined in a Prospectus (refer to CYM ASX announcement “Lodgement of Prospectus” dated 14 August 2023, and Expected Date for Reinstatement below). Proceeds from the Equity Raising will primarily be used for the completion of the Nifty project technical studies, Nifty site costs and for working capital purposes. Cyprium will have sufficient funding to complete the Nifty life of mine study on the integrated copper oxide Heap Leach SX-EW starter operation and the larger scale sulphide open pit and provide significant runway to pursue the updated Nifty strategy. SECURED LOAN AGREEMENT During the first half of 2023, the Company entered into an 18-month, USD-denominated Senior Secured Loan Facility (“Loan Facility”) with Nebari Natural Resources Credit Fund II, LP (“Nebari”). The facility has refinanced a short term $6 million Secured Loan Deed facility that was drawn in March 2023 and provides additional working capital to advance the development of Nifty. The Loan Facility provides up to USD14.5 million in two Tranches. Key terms of the Loan Facility The material terms of the Loan Facility are as follows: • • • • • • Funded amount: Facility term: Coupon: OID: Amortisation: Warrants: up to USD14.5 million, net of original issue discounts (“OID”) until 31 December 2024 Secured Overnight Financing Rate (“SOFR”) +6.5% p.a. payable monthly 5.0% on Tranche 1 and 10.0% on Tranche 2 100% bullet on maturity 2-year, 1 for 5.5 warrants which will be priced at either a 20% premium to the share price of a future equity raise or, if no equity raise is completed by 31 December 2023, the warrant strike price shall be priced at A$0.088 per share • Security: over the assets of Cyprium and its projects The Loan Facility contains other terms and conditions that are customary for an agreement of this nature. This facility could be rolled into a larger, longer term development financing facility in the near term (likely within 12 months), pending the finalisation of the Nifty life of mine study on the integrated copper oxide Heap Leach SXEW starter operation and the larger scale sulphide open pit, outlined above. These studies are currently underway and anticipated to be completed by Q1 2024. BOARD AND MANAGEMENT CHANGES Upon the issuance of shares under the Placement, Mr Clive Donner will be appointed to the Cyprium Board as the Managing Director. Mr Donner is an experienced mining private equity and financing expert who has financed over 50 mines globally. Mr Donner has been engaged to lead the raising the required capital, developing the assets of the Company and building the Company into a mid-tier copper producer. Mr Barry Cahill will resign from the Board upon Mr Donner’s appointment to the Board as the Managing Director. Mr Cahill will continue as an executive of the Company as the Chief Development Officer to focus on the technical studies to implement the Nifty Strategy. Upon completion of the Placement, Mr Jerkovic, an experienced mining executive will be appointed as Chief Operating Officer to build a technical team and deliver the execution of Nifty and other projects. CYPRIUM METALS LIMITED 6 Also upon completion of the Placement, Mr Matthew Fifield from PRCM will be appointed to the Company’s Board of directors and take up the role of non-executive interim Chair whilst Gary Comb will step down as Chair but remain as a non-executive Director. During April 2023, Mr Nicholas Rowley resigned as a Non-Executive Director and Mr John Featherby was appointed as Non-Executive Director. Mr Featherby has extensive experience in the stockbroking and wealth management industry. EXPECTED DATE FOR REINSTATEMENT The expected date for Reinstatement and quotation of securities issued under the Capital Raising is conditional on ASX being satisfied (in its absolute discretion) that all Conditions have been satisfied. In addition to customary ASX reinstatement conditions, this includes confirmation that the Company has completed the Capital Raising, which is expected to occur in the week commencing 11 September 2023. Accordingly, the Company will remain in voluntary suspension until the Conditions are satisfied. CAPITAL STRUCTURE The capital structure of the Company as at 8 September 2023 is summarised as follows: Security Number Fully Paid Ordinary Shares Issued Ordinary Shares 730,198,300 Performance Rights Unvested performance rights at a nil exercise price, subject to performance conditions 50,450,000 Convertible Notes Unlisted Convertible Notes at 4% per annum, maturing 30 March 2025 101,373,777 During the year, 20.3 million unlisted share options exercisable at 35.51 cents each expired on 30 March 2023. There are no unlisted share options at the date of this report, and 0.8 million unlisted performance rights lapsed on 13 April 2023. The effect of the Placement and Entitlement Offer on the capital structure of Cyprium will be as follows: Full Subscription Minimum Subscription (Assumes 0% Participation in Entitlement Offer) (Assumes 100% Participation in Entitlement Offer) Current shares on issue 730,198,300 730,198,300 Placement Shares 600,000,000 600,000,000 - 125,000,000 4,036,650 4,036,650 1,334,234,950 1,459,234,950 Shares on Issue1 Entitlement Offer Shares Shares to be issued to Consultants3 Shares on issue post Placement and Entitlement Offer CYPRIUM METALS LIMITED 7 Placement Options2 300,000,000 300,000,000 Nil 62,500,000 Lead Manager Options2 26,603,966 26,603,966 Consultants Options3 2,018,325 2,018,325 Options on issue post Placement and Entitlement Offer2 328,622,291 391,122,291 Nebari Warrants4 80,328,290 80,328,290 Entitlement Offer Options2 1. 2. 3. 4. Subject to rounding. Exercisable at $0.06 each on or before 31 December 2024. A total of 4,036,650 Shares is to be issued to consultants of the Company in lieu of fees owing for services provided to the Company. To be issued pursuant to the terms of the Loan Agreement with Nebari Natural Resources Credit Fund II LP. Exercisable at $0.048 each on or before 2 years from issue, following shareholder approval on 7 September 2023. The new shares issued will rank pari passu with existing shares on issue. CYPRIUM METALS LIMITED 8 AUDITOR’S INDEPENDENCE DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, 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 page 25 and forms part of this Directors’ Report for the half-year ended 30 June 2023. ROUNDING The amounts contained in this report have been rounded to the nearest $’000 (unless otherwise stated) under the option available to the Company under ASIC Corporations Instrument 2016/191. The Company is an entity to which the legislative instrument applies. This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act 2001. Gary Comb Chair, Non-executive Director Perth, WA 8 September 2023 CYPRIUM METALS LIMITED 9 Competent Persons The information in this report that relates to the estimation and reporting of the Nifty Mineral Resource Estimate dated 16 May 2022 is an accurate representation of the recent work completed by CSA Global Pty Ltd. Ms. Felicity Hughes has compiled the work for CSA Global and is an Associate of CSA Global Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy (106498). Ms. Hughes has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person (CP). Ms. Hughes consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Exploration Targets, Exploration Results and the estimation and reporting of the Hollandaire Mineral Resource Estimate is an accurate representation of the available data and is based on information compiled by external consultants and Mr. Peter van Luyt who is a member of the Australian Institute of Geoscientists (2582). Mr. van Luyt is the Chief Geologist of Cyprium Metals Limited, in which he is also a shareholder. Mr. van Luyt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (CP). Mr. van Luyt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Targets, Exploration Results and the estimation and reporting of the Maroochydore Mineral Resource Estimate is an accurate representation of the available data and is based on information compiled by external consultants and Mr. Peter van Luyt who is a member of the Australian Institute of Geoscientists (2582). Mr. van Luyt is the Chief Geologist of Cyprium Metals Limited, in which he is also a shareholder. Mr. van Luyt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (CP). Mr. van Luyt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Targets, Exploration Results and the estimation and reporting of the Nanadie Well Mineral Resource Estimate is an accurate representation of the available data and is based on information compiled by external consultants and Mr. Peter van Luyt who is a member of the Australian Institute of Geoscientists (2582). Mr. van Luyt is the Chief Geologist of Cyprium Metals Limited, in which he is also a shareholder. Mr. van Luyt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (CP). Mr. van Luyt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Cyprium confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not materially changed from the original market announcement. Forward-Looking Statements This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning the Company’s current expectations, estimates and projections about the industry in which the Company operates, and beliefs and assumptions regarding CYM’s future performance. When used in this document, words such as “anticipate”, “could”, “plan”, “estimate”, “expect”, “seek”, “intends”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the control of CYM and no assurance can be given that actual results will be consistent with these forward-looking statements. CYPRIUM METALS LIMITED 10 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated financial report of Cyprium Metals Limited for the half-year ended 30 June 2023, 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 8 September 2023 D B Healy Partner 11 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the six months ended 30 June 2023 Note Continuing Operations Interest income Other income Employee expenses Management and administrative expenses Share-based payments Depreciation Interest expense on finance leases Interest and finance expense Foreign exchange loss Loss before income tax Income tax expense Net loss for the period from continuing operations Net loss for the period Other comprehensive income Total comprehensive loss for the period Loss per share Basic and diluted loss per share (cents per share) 30-Jun-23 $’000 30-Jun-22 $’000 127 799 37 - (2,373) (4,893) (1,222) (842) (51) (2,166) (360) (6,751) (7,184) (3,094) (832) (20) - (10,981) (17,844) - - (10,981) (10,981) (10,981) (17,844) (17,844) (17,844) (1.50) (3.67) The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. CYPRIUM METALS LIMITED 12 Condensed Consolidated Statement of Financial Position as at 30 June 2023 30-Jun-23 $’000 31-Dec-22 $’000 Cash and cash equivalents 3,602 1,694 Receivables 1,016 459 6,558 6,606 Other assets 1,222 1,375 Total Current Assets 12,398 10,134 Note Current Assets Inventories 3 Non-Current Assets Right-of-use asset 4 1,606 236 Property, plant, and equipment 5 106,871 105,282 Deferred exploration and evaluation expenditure 6 32,815 31,995 Other non-current financial assets 7 6,856 6,855 Total Non-Current Assets 148,148 144,368 Total Assets 160,546 154,502 Current Liabilities Trade and other payables 8 9,091 6,190 Lease liabilities 9 508 341 9,599 6,531 710 Total Current Liabilities Non-Current Liabilities Lease liabilities 9 1,760 Borrowings 10 10,926 - Convertible notes 11 32,067 31,700 Provisions 12 35,332 35,181 Total Non-Current Liabilities 80,085 67,591 Total Liabilities 89,684 74,122 Net Assets 70,862 80,380 271,685 Equity Issued capital 13 271,616 Reserves 14 6,031 6,086 8,748 8,748 (215,533) (206,139) 70,862 80,380 Convertible borrowings – equity component Accumulated losses Total Equity The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. CYPRIUM METALS LIMITED 13 Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2023 Convertible borrowings Accumulated – equity losses component $’000 $’000 Issued capital $’000 Balance at 1 January 2022 Reserves $’000 Total $’000 251,993 (181,740) 8,748 8,321 87,322 Total comprehensive loss for the period Loss for the period - (17,844) - - (17,844) Total comprehensive loss for the period - (17,844) - - (17,844) Transactions with owners in their capacity as owners Share-based payments Cost of issue Balance at 30 June 2022 - - - 3,511 3,511 251,993 (199,584) 8,748 11,832 72,989 Balance at 1 January 2023 271,685 (206,139) 8,748 6,086 80,380 Total comprehensive loss for the period Loss for the period - (10,981) - - (10,981) Total comprehensive loss for the period - (10,981) - - (10,981) Transactions with owners in their capacity as owners Share-based payments Transfer from reserves Cost of issue Balance at 30 June 2023 (69) 271,616 1,587 (215,533) 8,748 1,532 (1,587) 6,031 1,532 (69) 70,862 The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. CYPRIUM METALS LIMITED 14 Condensed Consolidated Statement of Cash Flows for the six months ended 30 June 2023 30-Jun-23 $’000 30-Jun-22 $’000 Cash flows from operating activities Payments to suppliers and employees Interest paid on finance leases Interest on convertible notes Interest on borrowing Interest received Other income Net cash used in operating activities (4,085) (51) (1,440) (419) 127 799 (5,069) (10,333) (20) (1,440) 37 (11,756) Cash flows from investing activities Acquisition of plant and equipment Acquisition of project Payments for exploration expenditure Payments for security deposits Net cash used in investing activities (707) (717) (1) (1,425) (7,958) (1,000) (1,668) (10,626) Cash flows from financing activities Proceeds from loan Repayment of loan Loan costs Payment of finance lease liabilities Net cash provided by/(used in) financing activities 17,142 (6,859) (1,622) (259) 8,402 (174) (174) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 1,908 1,694 3,602 (22,556) 25,474 2,918 Note The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. CYPRIUM METALS LIMITED 15 Notes to the condensed consolidated Interim Financial Report for the six months ended 30 June 2023 1. Corporate Information The financial report of Cyprium Metals Limited (“Cyprium Metals” or “the Company”) for the half-year ended 30 June 2023 was authorised for issue in accordance with a resolution of the Directors on 8 September 2023. Cyprium Metals is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Ex