Annual report
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1 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Empowering Growth through Industry, Infrastructure, and Innovation Annual Report 2025 For personal use only
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For personal use only
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3 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Contents Highlights 4 Key Milestones Timeline 4 Company Overview & Strategy 6 Overview 6 Strategy 6 Leadership Report 8 Chairman’s and Managing Director’s Report 8 Operational & Portfolio Review 11 Central Lime Project 11 Central Cement Project 13 Industrial Sands Projects 14 Renewables/Nature Based Carbon Projects 14 Tenements Schedule 15 JORC Reserves & Resources 16 Competent Persons Statement 18 Sustainability 19 Governance & Leadership 20 Board of Directors 20 Executive Leadership 21 Lime & Cement Advisory Board 22 Financial Performance & Reports 23 Shareholder & Corporate Information 88 Shareholder Information 88 Corporate Directory 90 For personal use only
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4 PLC Annual Report 2025 Highlights FY25 performance snapshot 2025 was a watershed year for our Company, as we transitioned from resources exploration to major project and infrastructure develop ment, while making our first sales of qu ality quicklime to Australia’s mining industry. Central to this was our achievement of Final Investment Decision for the Central Lime Project, a culmination of more than decade’s work. Key Milestones Timeline • August 2024 : PNG Government establishes State Negotiation Team to finalise terms of a Project Development Agreement with the Company , bringing together the individual arrangements of Community Development Agreement, Special Economic Zone functional demarcation, PNG State fiscal support and equity participation, as well as locking in the cement domestic offtake and supply rights – under one guiding project development regime for the Central Lime and Cement Projects. • October 2024: Strategic Alliance Agreement with a quality Asian partner securing ten years of premium quicklime for supply into the Australian and Pacific markets , providing early market entry and longer- term supply back-up. • December 2024 : Roadmap Agreement executed as precursor to a formal Community Development Agreement with landowners and various levels of PNG government for the Central Lime and Cement Projects. • February 2025: Final agreements signed for development of the Orokolo Bay Industrial Sands Project with Pacific Unison. • February 2025: Initialled and agreed a final Community Development Agreement paving the way for Final Investment Decision at the Central Lime Project. • February 2025: PLC completes a $ 97 million upsized equity placement led by Barrenjoey , supported by sophisticated investors and existing shareholders. • March 2025: Shareholders approve change of name to Pacific Lime and Cement Limited reflecting our primary focus of developing a PNG based building materials business. • May 2025 : Opened a new 50 -person office in Port Moresby to support the transition into full -scale construction. • June 2025 : Special Economic Zone for the Central Lime and Cement Project and associated downstream infrastructure re-confirmed. Presentations to Landowners Signing of the Road Map Agreement For personal use only
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5 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights • July 2025 : First quicklime shipments to Australian mining customers confirms reliability of our product and supply chain. • July 2025: The dedicated wharf and port facility saw Phase 2 completion, with a roll-on/roll-off barge ramp now operational. • August 2025: Final Investment Decision for the Central Lime Project taken in concert with the PNG Prime Minister Hon. James Marape officiating with the final project design financed off its own balance sheet with no debt or project finance requirements. • August/September 2025 : A large fleet of construction machinery (excavators, trucks, graders, and generators) arrived on site during the quarter, as anticipated, enabling mobilisation for full construction. • September 2025 - Central Lime and Cement Project Animation Video released – see attached link - LINK https://www.youtube.com/watch?v=I9m9bBMzLjI • October 2025: Signed Joint Venture Agreements with Landowner Companies for the provision of both assets based and services-based contracts to support the Central Lime and Cement Projects, providing economic and social empowerment for host communities. First Quicklime Shipments to Australian Customers Deployment of Equipment at Wharf Wharf during FID Event For personal use only
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6 PLC Annual Report 2025 Company Overview & Strategy Overview About Us Pacific Lime and Cement Limited (PLC) is committed to building the physical foundations of Papua New Guinea’s future — by replacing imports, adding value to local resources, manufacturing essential building materials within the country. We are driving sustainable economic growth by developing downstream manufacturing capacity and establishing new industries that will provide PNG with a reliable, home -grown supply of critical lime and cement products. These products are fundamental to the nation’s infrastructure - from roads and housing to energy and industrial development. Our investment will substantially reduce, and ultimately eliminate, PNG’s reliance on imported building materials, while lowering construction costs, creating jobs, supporting local enterprise, and enabling the growth of social infrastructure across the country. At the core of our approach is partnership across all levels of Government, traditional landowners, and local communities to ensure development that is inclusive, collaborative, and enduring. At PLC, we are proud to be creating lasting value for Papua New Guinea — building the foundations for progress today, and prosperity tomorrow. Our project portfolio is diverse, with our flagship project being the Central Lime Project and its associated downstream infrastructure. Our Vision Our vision is to empower PNG through Industry, Infrastructure, and Innovation By harnessing Papua New Guinea’s natural resources, PLC is creating a blueprint for nation-building, driving economic growth, enabling affordable infrastructure, and delivering tangible social impact. Strategy Growth Strategy Our strategy is to support PNG and the wider Asia Pacific region’s path to sustainable prosperity by: • Establishing vertically integrated lime and cement industries that provide affordable, high -quality, low- carbon building materials whilst reducing or eliminating import reliance and lowering infrastructure costs. • Partnering in renewable and sustainable energy solutions including solar, wind, geothermal, and carbon mitigation to power industry, homes, and communities whilst offsetting our carbon footprint in our industrial developments where feasible to do so; and • Investing in downstream and social infrastructure, from roads, housing, and utilities to environmental restoration and modern community development, ensuring that growth is inclusive and sustainable. Our strategic priority is the development of the Central Lime and Central Cement Projects in PNG’s Central Province. These projects are underpinned by our 382 Mt limestone resource 1. The Central Lime and Cement Projects are co-located within a PNG Government licensed and gazetted Special Economic Zone (SEZ) that is planned to host additional downstream manufacturing industries that will also 1 Refer to JORC Reserves and Resources on page 16 in this Annual Report. For personal use only
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7 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights consume our cement products. We are developing economic infrastructure including an international wharf, roads, and renewable power generation that will be fully integrated into our projects and enable us to access both domestic and export markets. We have a diversified and complimentary portfolio of assets that we aim to progress over the medium term, including industrial/critical minerals, renewable energy, and carbon offsets. Our approach to capital management is designed to maximise value for shareholders by phased portfolio expansion to be funded through internal cashflows. Site Grading and Grubbing for Civil Works Preparation For personal use only
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8 PLC Annual Report 2025 Leadership Report Chairman’s and Managing Director’s Report Dear Fellow Shareholders, We are pleased to present an update on our progress through the 2025 financial year and into the first months of the current financial year, under our new identity as Pacific Lime and Cement Limited (PLC). Our new name and branding reflects our shift from a diversified resource explorer to a dedicated building materials focused industrials project developer. Our flagship lime activities are now under construction and expected to be operational by early calendar 2027. 2025 was a watershed year for PLC, as we reached the Final Investment Decision for our flagship Central Lime Project, which will be PNG’s first vertically integrated lime products manufacturing development. This unlocks the Company’s plans with the PNG Government for the multi-phased development of the entire industrial precinct at the Special Economic Zone with the establishment of key infrastructure, including an international wharf, roads, power, and fresh water. Our projects will generate shared value for all stakeholders, including our shareholders, PNG, and local landowner communities. Our communities are critical to our success, and we are partnering with them through equity participation, royalties, direct and indirect jobs via joint venture spinoff contracts, infrastructure, and by attracting PNG Government funding for social and economic development. Stage 1 of the Central Lime Project is under construction and is expected to be closely followed by the establishment of clinker/cement manufacturing in PNG. This will boost the nation’s own internal construction building materials capacity by replacing imported product, as well as supplying Australia and the Pacific with a new source of supply that replaces imports from much further afield. The new industries we are creating in PNG will add value through the downstream processing of PNG’s natural resources, bringing new, locally manufactured building materials and products to the local market and stimulating small and medium enterprise development. Importantly, we will also generate export revenue for PNG from locally manufactured, high-quality lime and cement products. A key milestone for our Company took place in February 2025, when we successfully completed a $97 million equity capital raising that introduced a number of new high-quality Australian and international investor groups onto the register, and which was also well-supported by a number of our key long term and existing shareholders. Strong demand from investors enabled an increase in the scale of the capital raising, making it possible for the Company to fully fund Stage 1 of the Central Lime Project solely with equity. A significant body of optimisation work was undertaken post the capital raise to reduce capital costs of Stage 1 of the Project, enabling the Company to reach a Final Investment Decision (FID) for the Central Lime Project in early August 2025 on an equity-only basis, avoiding the need for the utilization of any debt or project finance. We consider this to be a strong positive outcome for shareholders. With reduced capex and an equity-funded model the Project has robust economics and is forecast to generate strong free cashflow, creating a solid platform to pursue medium term expansion of our Richard Pegum, Executive Chairman (Left) and Paul Mulder, Managing Director (Right). For personal use only
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9 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Richard Pegum Paul Mulder Executive Chairman Managing Director 31 October 2025 quicklime facilities, the development of the Central Cement Project, and to progress further downstream on our industrial precinct into concrete, castings, bricks, and pavers. At the Central Lime Project’s FID ceremony in early August 2025, officiated by PNG Prime Minister Hon. James Marape, we were pleased to present cheques totalling PGK 2.73 million to local landowner companies, The Central Provincial Government also contributed PGK 1 million to the same landowner companies. These funds will contribute to necessary economic and social improvements in local communities and are tangible signs of the social and economic benefits our Projects will continue to drive in PNG. During the year, PLC was pleased to announce its first commercial shipment of Quicklime to Australia – with Western Australian gold miners our first customers. The quicklime was sourced from the Company’s Asian based Alliance Partner and delivered through our new regional logistics hub in Western Australia. This shipment is strategically significant for PLC as it establishes and validates our supply chain for quicklime distribution within Australia, which will be critical once our PNG operations commence. It confirms to potential customers that we have a demonstrably robust and reliable supply chain for quicklime and related products. Looking ahead, we will continue to ramp up construction activities at the Central Lime Project over FY2026, with the international wharf in the final phase of construction, and site preparation underway for the lime kilns and associated infrastructure. We will also focus on developing our internal team, systems, and processes to ensure we are ready for safe operations as construction and commissioning complete over the next 16 months. A value realisation program has commenced for all non-core assets, with a structured process over the next 12 months to unlock value through either strategic partnerships or asset divestments. This initiative will enable PLC to focus its resources on the development of its core building materials industrial precinct, commencing with the Company’s Lime and Cement operations. It will be another busy year for PLC as we aim to build on the positive momentum we established in 2025. Thank you to our talented and hard-working team, based both in Australia and PNG, who have worked tirelessly this year to bring our flagship asset into a position where we could achieve Final Investment Decision, while driving our other assets forward as we seek to maximise their value for shareholders. Thank you also to all shareholders for your ongoing support as we pursue our vision of sustainable development in PNG. We look forward to continuing to deliver for shareholders and our host communities in the years ahead. For personal use only
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10 PLC Annual Report 2025 PLC Managing Director Paul Mulder (left) and Prime Minister of PNG Hon. James Marape, MP, announce the Final Investment Decision for the Central Lime Project For personal use only
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11 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Operational & Portfolio Review Central Lime Project Currently under construction, the Central Lime Project in Papua New Guinea’s Central Province will deliver quicklime and hydrated lime products to meet demand in PNG and the broader Asia Pacific. The Company’s Final Investment Decision on the Central Lime Project (CLP) in early August 2025 marked a watershed moment, as it signalled our shift from a resource explorer to a developer and operator of an industrial materials business. 2025 saw significant strides in optimising both the design and capital requirements of the project, which contributed to being able to fully fund the project with equity only, eliminating the need for debt, improving returns to shareholders, and derisking the project. Stage 1 of the Project will involve commissioning two high-efficiency lime kilns, each capable of producing 600 tonnes per day into production from early calendar year 2027. Subject to market conditions, we have the opportunity to expand the CLP to five kilns, producing 3,600 tonnes per day1. The CLP is underpinned by our 382 Mt lime resource 2, which is located within a PNG Government licensed and gazetted Special Economic Zone (SEZ) that has been established to incentivise industrial development to drive PNG’s economy. The proximity of the lime quarry, CLP processing facility and the proposed cement production plant provides a unique opportunity to develop a fully integrated operation that has access to PNG domestic downstream consumers of quicklime and cement products, as well as export markets through our 100% owned wharf facilities. By reducing the up -front capital costs and eliminating debt funding we plan for the CLP to deliver immediate positive cashflow from 1H CY2027. The Project has robust economics and the forecast early cashflow will provide flexibility in how we fund future expansion of the CLP and develop the adjacent Central Cement Project 3. Site/construction update During the year we made significant progress with an early works program, which gained momentum post the Final Investment Decision in August 2025. Civil and bulk earthworks are well advanced, with major leveling and grading completed across the kiln and plant precinct establishing foundations for the process plant ’s construction. Phase 2 of the dedicated international wharf is complete, and the roll-on/roll-off barge ramp is operational. Phase 3 wharf engineering has progressed with the design of a multi-berth deep draft facility (capable of handling Handymax vessels , ~50,000 DWT) that will enable direct quicklime export s and the unloading of inbound bulk fuels and materials. Access road upgrades continued in parallel. Geotechnical investigations for two river crossings along the 27.6 km route from Port Moresby to Kido were completed in July 2025, and two pre -fabricated 60-tonne steel bridge spans were ordered for CY Q4 2025 delivery, securing for the first time a road connection between Kido and Port Moresby that offers weatherproof year-round access for heavy-vehicles. The Company also received a fleet of heavy construction equipment, excavators, dump trucks, graders, generators, now deployed to accelerate on -site works , and entered into Joint Venture Agreement s with Landowner Companies for the provision of both assets based and services based contracts to support the Central Lime and Cement Projects, providing economic and social empowerment for host communities. 1 As announced in “Amended Announcement CLP Achieves FID” dated 25 August 2025 2 Refer to JORC Reserves and Resources on page 16 in this report 3 Table on right is taken from announcement “Amended Announcement CLP Achieves FID” dated 25 August 2025 and should be read in conjunction with that announcement For personal use only
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12 PLC Annual Report 2025 To support Project execution, PLC has expanded its PNG project team and opened a new 50 -person Port Moresby project office to coordinate logistics, procurement, engineering , and administration . The procurement of long -lead processing packages is in its late stages ; and orders for fuel storage tanks, a modular desalination plant, and power generators were placed in Q1FY2026. The Central Lime Project is fully aligned with the PNG Government’s strategy for developing and diversifying PNG’s economy. Through the Special Economic Zone in Central Province, the Government’s goal is to attract investment in the manufacturing of construction materials needed to build roads, bridges, housing, and other infrastructure. By manufacturing locally, PNG will not only replace imports, but create access to more competitively priced building materials, and generate export income. PLC is proud to be playing a key role in establishing this industry. Our projects will initially generate hundreds of jobs in the construction and operations phases of the CLP, expanding to expected thousands more jobs and business opportunities by providing PNG with access to an increased supply of competitively priced, locally made building materials. In addition to the economic benefits our Project brings to PNG, we have also been investing in the social infrastructure needed to help communities thrive . At the CLP’s opening ceremony FID, the Company presented local landholder companies with 2.73 million kina ( app. $A954,000) to support the development of their communities having already funded the full establishment of all documentation and legal requirements for fully functioning Landowner Companies and Landowner Associations. Quicklime Supply Chain As part of a new strategic focus on building trust, relationships, and market awareness for our lime products, PLC has commenced marketing and shipping quicklime to Australian customers. We have established a complete end -to-end supply chain in WA – covering importation, warehousing, and mine-gate logistics - to ensure reliable service levels and a smooth transition of our manufactured product into the market when it becomes available in early calendar 2027. In doing so, we have provided Australian quicklime users with a cost -effective, premium-quality alternative that will be progressively expanded throughout Australia, Papua New Guinea, and the Pacific region. We are doing this by offering an internationally benchmarked, premium -grade quicklime product under our PLC branding. It is a strategic first step towards our broader push into the building and industrial materials sector in the Asia Pacific. Early revenue from this business is supplementing other early cash flow from PNG limestone and aggregate sales as we build the Central Lime Plant in PNG. Construction of Workshop Area For personal use only
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13 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Central Cement Project Our Central Cement Project will add value to our lime production and provide PNG with access to competitive, low carbon clinker and cement that will boost PNG’s construction industry. The Central Cement Project (CCP) is ready to commence construction, with all material approvals in place. The CCP will be fully integrated with the Central Lime Project and wharf facilities, as well as feeding downstream manufacturing such as batch concrete plants, casting plants to manufacture concrete panels, pipes and girders and other products, and brick manufacturing. PLC is targeting production of 1.65m tonnes per annum of clinker, of which a majority will be converted into powdered cement in bag and bulk delivery formats. This will be the first integrated Clinker/Cement production facility in PNG, and it will displace high cost imported cement that currently supplies PNG. The PNG Government has identified cement production as a national strategic imperative and has included our Project in its plans to future proof domestic building material security. We are in the final stages of bringing together commercial arrangements associated with the CCP, including the establishment of the nation’s first national Cement Trading Corporation, in partnership with the PNG Government. The Company has committed to satisfying 100% of PNG’s domestic cement needs before exporting surplus clinker/cement. In time, entering Australia’s high-margin concrete and concrete products market will be a significant opportunity for both PNG and the Company, supplying the high margin downstream cement market in Australia. Compared to current importers into Australia our planned PNG cement business has the advantage of being approximately 60% closer to the market than current north Asian importers . We have built a team that has been heavily involved in the evolution of the cement, concrete and building material s within Australia. We believe our location, our resources, and our team provides us with a credible pathway to being a highly successful new independent entrant in Australia’s concrete and building materials market. We will also be very well positioned to service other Pacific markets that are currently supplied by high-cost imports in South-East and Northern Asia. Like the Central Lime Project, our Central Cement Project will contribute to the building of PNG, by providing highly competitive, locally manufactured cement products while also providing direct and indirect jobs and business opportunities for local people and communities. Industrial Sands Projects The Orokolo Bay Industrial Sands Project (OBP) is initially focused on the production of magnetite, which will be a precursor to the development of a broader portfolio of industrial sands projects that open the door for further downstream processing and production industries in the region. The OBP is targeting production of up to 500,000 tonnes per annum of high-grade magnetite from calendar year 2026 and has the potential to expand to include the production of critical minerals such as vanadium and titanium. In order to progress Orokolo Bay while we prioritise the development of the Central Lime Project, this year we entered into definitive agreements with Pacific Unison Holdings (PUH), who have committed to fund the construction and commissioning costs of Orokolo Bay Project. Construction activities are currently underway. Under these agreements, our Company will retain 100 per cent of the equity in the Project and the underlying mining licence and tenements, and 50 percent of all future profits. For personal use only
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14 PLC Annual Report 2025 Renewables/Nature Based Carbon Projects PLC has an emerging portfolio of clean energy and carbon offset projects that will help both the Company, and PNG, capture the environmental and economic benefits of the nation’s natural resources and clean energy sources. PLC holds three granted carbon credit projects. The current priority is the Kamula Doso Forest Conservation Project in Western Province . In late 2024, the PNG Supreme Court dismissed a PNG Forest Authority appeal against the Company’s permits and upheld their validity. During the year, the Company submitted the Kamula Doso Project to Verra Registry under the VCS improved Forest Management methodology. If approved, this 800,000-hectare project is capable of generating Verified Carbon Units, which could be used to offset our own operations, or be sold into the carbon market. As part of the Central Lime and Central Cement Projects, the Company has plans for the development of a solar farm to provide electricity for both our operations, and for electricity to be supplied to nearby communities and nearby industrial users. The Company also has the option of developing larger scale solar and wind energy production within the Special Economic Zone. We have also identified two locations that show early potential as source s of geothermal power. The PNG Government is currently contemplating a Geothermal Act, which would create a regulatory framework for the development of geothermal resources. The Company will continue to monitor the progress of this legislation with a view to further investigating geothermal opportunities once the Act has been passed. For personal use only
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15 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Tenement Schedule As of 30 June 2025, the Company had interests in the Exploration Licences (EL) as listed in Table 1, all located in Papua New Guinea. In addition to this the Company holds 100% of Mining Lease (ML) 526 for the Central Lime and Cement Project and ML 541 for the Orokolo Bay Industrial Sands Project. Table 2 shows the ELs held by Adyton Resources Corporation (TSXV: ADY) with PLC retaining approximately 16.6% ownership in Adyton Resources. Table 3 details the Forestry Carbon Concession Permits granted to Mayur Renewables. As noted in the table, various Exploration Licences are under renewal and are progressing in accordance with the regulatory processes as prescribed by the PNG Mining Act. The Company believes it has complied with all license conditions, including minimum expenditure requirements, and is not aware of any matters or circumstances that have arisen that would result in the Company’s application for renewal of the exploration license not being granted in the ordinary course of business. EL number Province Commodity Focus PLC Ownership Area Km2 1 2150* Gulf Industrial mineral sands 100% 256 2 2304* Gulf Industrial mineral sands 100% 256 3 2305* Gulf Industrial mineral sands 100% 256 4 2556* Central Industrial mineral sands 100% 350 5 2695* Western Industrial mineral sands 100% 948 6 1875* Gulf Thermal energy 100% 256 7 1876* Gulf Thermal energy 100% 153 8 2599* Gulf Thermal energy 100% 48 9 2303* Central Limestone 100% 256 10 2770 Sandaun Gold (Granted 08/09/2025) 100% 951 Table 1 - Exploration Licences (*EL under renewal, ELA indicates an Exploration Licence application). EL number Province Commodity Focus PLC Indirect Interest Area Km2 1 2096* New Ireland Copper / gold 16.6% 95 2 2546* Milne Bay Copper / gold 16.6% 37 4 2549* Milne Bay Copper / gold 16.6% 102 Table 2 - Exploration Licences held by Adyton Resources Corporation in which PLC has an indirect interest through its approx. 16.6% ownership interest in Adyton Resources Corporation (*EL under renewal). FP Number Province Commodity Focus PLC Ownership Area ha 1 FCCTP 1-01 Western Carbon 100% 268,786 2 FCCTP 1-02 Western Carbon 100% 265,907 3 FCCTP 1-03 Western Carbon 100% 257,962 Table 3 – Forestry Carbon Concession & Trading Permits held by Mayur Renewables issued under the Forestry Act 1991. Following the validation of its carbon permits by both the National and Supreme Courts of Papua New Guinea, Mayur Renewables has been actively asserting its exclusive legal rights over the Kamula Doso project area. Litigation is nearing conclusion, with favourable outcomes anticipated. A comprehensive legal update will be provided upon resolution . For personal use only
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16 PLC Annual Report 2025 JORC Reserves and Resources 2024/2025 Central Cement & Lime Project Mineral Resources at 30 June 2025 (no change from 30 June 2024) Measured Mineral Resources Estimate Area Category CaO cut off % Tonnes CaO % AI2O3 SiO2 % Lea Lea Measured 52% 61,000,000 53.4 0.6 1.65 Kido Measured 52% 144,000,000 53.6 0.62 1.77 Total Measured 52% 205,000,000* 53.5 0.61 1.73 Indicated Mineral Resource Estimate Area Category CaO cut off % Tonnes CaO % AI2O3 SiO2 % Lea Lea Indicated 50% 117,000,000 51.8 0.9 2.7 Kido Indicated 50% 11,000,000 51.5 0.6 1.1 Total Indicated 50% 128,000,000 51.8 0.9 2.6 Inferred Mineral Resource Estimate Area Category CaO cut off % Tonnes CaO % AI2O3 SiO2 % Lea Lea Inferred 48% 7,000,000 48.1 1.1 2.5 Kido Inferred 48% 42,000,000 48.4 1.0 1.8 Total Inferred 48% 49,000,000 48.3 1.0 1.9 Ore Reserves at 30 June 2025 (no change from 30 June 2024) CaO AI2O3 Fe2O3 K2O MgO Na2O SiO2 LOI Area Category Million tonnes % % % % % % % % Kido Probable 45 54 0.5 0.3 0.04 0.4 0.2 1.3 43 Lea Lea Probable 33 44 4.5 3 0.3 2.2 0.3 9.5 36 Total 78 Depot Creek Thermal Energy Project Mineral Resources at 30 June 2025 (no change from 30 June 2024) Seam Total Resources (million tonnes) Inferred (million tonnes) Indicated (million tonnes) A3B 1.3 1.3 - A3 <0.1 <0.1 - A2 3.1 1.4 1.7 A1 0.5 0.5 - A 6.7 4.5 2.2 D 1.1 1.1 - Total 12.8 8.9 3.9 For personal use only
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17 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Orokolo Bay Industrial Sands Project (Western Area) Mineral Resources at 30 June 2025 (no change from 30 June 2024) 5.25% (Fe cut off) Resource Estimates (Groundworks Plus) Category Mt DTR % Fe % Ti % Zircon ppm DTR Mt Fe Mt Ti Mt Zircon t Measured 1.64 10.08 11.35 1.94 712 0.17 0.19 0.03 1,170 Indicated 70.1 6.82 9.13 1.17 508 4.78 6.40 0.82 35,587 Inferred 137.8 5.43 8.19 1.02 454 7.48 11.28 1.40 62,622 Total 209.5 5.93 8.53 1.08 474 12.42 17.87 2.25 99,378 Construction Sand Resource – 5.25% (Fe cut off) Western Area Only Category Mt Indicated 38.6 Inferred 74.2 Total 112.8 Ore Reserve at 30 June 2025 (no change from 30 June 2024) 5.25% (Fe cut off) Resource Estimates (Groundworks Plus) Category Mt DTR % Fe % Ti % Zircon ppm DTR Mt Fe Mt Ti Mt Zircon t Construction Sand Mt Proved 1.0 13.99 14.01 2.46 900 0.14 0.14 0.02 900 - Probable 29.6 11.36 12.22 1.69 682 3.36 3.62 0.5 20,200 15.2 Total 30.6 11.45 12.28 1.72 689 3.51 3.76 0.53 21,100 15.2 Orokolo Bay Industrial Sands Project (Eastern Area) Mineral Reserve at 30 June 2025 (no change from 30 June 2024) Eastern Area 7.0% (Fe cut off) Resource Estimates (H&S Consultants) Category Mt DTR % Fe % Ti % Zircon ppm DTR Mt Fe Mt Ti Mt Zircon t Indicated 7.0 5.7 9.33 1.44 923 0.40 0.65 0.10 6,500 Inferred 26.5 5.2 9.00 1.39 921 1.00 2.39 0.37 24,400 Total 33.5 5.32 9.07 1.40 921 1.40 3.04 0.47 30,900 For personal use only
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18 PLC Annual Report 2025 Competent Persons Statement Statements contained in this Annual Report relating to Mineral Resources and Ore Reserves estimates for the Central Cement and Lime Project are based on, and fairly represent, information and supporting documentation prepared by Mr. Rod Huntley, who is a member of the Australian Institute of Geoscientists. Mr. Huntley has sufficient and relevant experience that specifically relates to the style of mineralisation. Mr. Huntley qualifies as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC) Code 2012. Mr. Huntley is an employee of Groundworks Pty Ltd contracted as a consultant to Pacific Lime and Cement Limited (formerly Mayur Resources Limited) and consents to the use of the matters based on his information in the form and context in which it appears. As a competent person Mr. Huntley takes responsibility for the form and context in which this Mineral Resources and Ore Reserves Estimate prepared for the Central Cement and Lime Project appears. Statements contained in this Annual Report relating to Ore Reserves for the Orokolo Bay Mineral Sands Project Western Area are based on, and fairly represents, information and supporting documentation prepared by Mr. Troy Lowien, a Member of The Australasian Institute of Mining and Metallurgy Mr. Lowien qualifies as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC) Code 2012. Mr. Lowien is an employee of Groundworks Pty Ltd contracted as a consultant to Pacific Lime and Cement Limited (formerly Mayur Resources Limited) and consents to the use of the matters based on his information in the form and context in which it appears. As a competent person Mr. Lowien takes responsibility for the form and context in which this Ore Reserves Estimate prepared for the Orokolo Bay Project Western Area appears. Statements contained in this Annual Report relating to Mineral Resource estimates for the Depot Creek Project are based on, and fairly represents, information and supporting documentation prepared by Mr. Kerry Gordon, a Member of The Australasian Institute of Mining and Metallurgy. Mr. Gordon has sufficient and relevant experience that specifically relates to the style of mineralisation. Mr. Gordon qualifies as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral Resource s and Ore Reserves (JORC) Code 2012. Mr. Gordon is an employee of Verum Ltd contracted as a consultant to Pacific Lime and Cement Limited (formerly Mayur Resources Limited) and consents to the use of the matters based on his information in the form and context in which it appears. As a competent person, Mr. Gordon takes responsibility for the form and context in which the Mineral Resource Estimate prepared for the Depot Creek Project appears. For personal use only
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19 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Sustainability 6.1 Environment & Climate • Active monitoring and management across our footprint, targeting continuous efficiency gains and responsible land use. • Progressing lower- emission production (e.g., renewables + BESS, shorter supply chains) to deliver cleaner lime and cement products for customers. 6.2 People & Communities • Programs that lift household incomes and quality of life through inclusive participation and fair benefit-sharing. • Creation of direct construction and operations roles, plus indirect employment and local business opportunities across service and supply chains. 6.3 ESG Governance & Framework • Board-level oversight with management accountability, guided by formal ESG policies, risk frameworks, and code of conduct. • Defined pillars (Environment, Social, Governance) with measurable KPIs, targets, and ownership embedded across the business. For personal use only
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20 PLC Annual Report 2025 Governance & Leadership Board of Directors Pacific Lime and Cement Limited is guided by a Board of Directors whose collective expertise spans resource development, financial markets, large-scale project execution, governance, and community engagement. The Board combines the skills of executives who have delivered some of the region’s largest mining and infrastructure projects with independent directors who bring disciplined oversight, legal and engineering acumen, and international governance experience. This balance ensures that the Company has both the vision to pursue long-term growth opportunities and the rigor to manage risk, safeguard stakeholder interests, and deliver sustainable value to shareholders and the communities in which it operates. Richard Pegum Executive Chairman Richard is a highly experienced financial markets professional with a career spanning more than three decades across investment banking and asset management. Beginning his career with Macquarie Bank, he rose to become an Executive Director by the age of 29, leading the bank’s expansion into key global markets including Hong Kong, South Africa, Japan, Europe, and Brazil. Richard subsequently co-founded Bennelong Asset Management in the UK, which he grew to more than $3 billion in funds under management, Richard has been an Executive Director of the Company since November 2023. Paul Mulder Managing Director Paul was a founding shareholder in PLC in 2011 and has served as Managing Director since 2014. He brings 32 years of experience in senior executive leadership of resources and infrastructure development. Prior to co-founding the Company, Paul led the development of multi-billion-dollar resource and infrastructure projects working at Hancock Prospecting and BHP Billiton. Paul has been instrumental in the conception of PLC from a resource’s explorer through to the industrials developer that it is today. Paul is a qualified Materials Engineer and holds an MBA, bringing to the Company a strong technical and operational background. Tim Crossley Non-Executive Director Tim is a highly respected senior executive within the global mining industry with over three decades of experience in senior leadership roles across BHP Billiton, Hancock Prospecting, Gloucester Coal, and Trans-Tasman Resources – with several of those roles being CEO or Deputy CEO roles. Tim brings deep operational expertise and an understanding of large-scale project execution to the Company. He has an exemplar track record in delivery and operation of globally significant mining projects. Tim has also been the Managing Director of Adyton Resources (TSXV:ADY) – spun out of PLC in 2021. Tim has been an Executive Director of the Company since its IPO in 2017. Musje Werror Executive Director Musje is a highly respected Papua New Guinean resources executive with significant experience in senior operational roles including being the former Managing Director and CEO of Ok Tedi Mining Limited, the operator of the Ok Tedi mine in PNG. Musje began his career at Ok Tedi in 1988 as a graduate, working up into significant operational roles across health, safety, and environment, mine closure planning, tax credit scheme projects, government affairs, and leading community relations. Musje is a Non-Executive Director of Santos Limited (ASX:STO) since 2022 and was a director of Oil Search Limited (ASX:OSH) prior to its merger with Santos. Musje’s role at the Company centres around overseeing government and community relationships in PNG. Musje has been an Executive Director of the Company since January 2024. For personal use only
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21 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Chris Indermaur Non-Executive Director (Independent) Chris has over three decades of experience in engineering and commercial roles across, with a background in both Mechanical Engineering and law. His past roles include Non-Executive Director of Austal Limited (ASX:ASB) as well as Engineering and Contracts Manager for the QNI Nickel Refinery at Yabulu, Company Secretary for QAL and General Manager for Strategy and Development at Alinta Ltd. Chris has been a Non-Executive Director of the Company since 2021. The Company considers Chris to be independent. Chris is also a Non-Executive Director of ASX-listed Austin Engineering Limited. Chris has been a Director of the Company since September 2021. William Wong Non-Executive Director (Independent) William has over twenty-five years senior leadership experience within the financial services industry, having held executive roles at two of the world’s largest insurers, AIA and Aviva. Based in Singapore, his career has focused on governance, distribution leadership and organisational capability building across highly regulated, multinational environments. William is the Company’s resident Singaporean director and has been a Non- Executive Director of the Company since 2023. The Company considers William to be independent. William has been a Director of the Company since October 2023. Executive Leadership Pacific Lime and Cement Limited’s Executive Leadership (other than the Executive Directors) comprises executives with significant experience across commercial operations within the resources industry with specific lime and cement operational experience. Kerry Parker Group Chief Financial Officer Kerry is a highly experienced executive leader with over 30 years real and demonstrated experience in leading multi-discipline teams in the mining and resources sectors across a broad commodity mix, including gold, copper, oil and gas, coal, geothermal, and renewable energy. Kerry has deep experience in both equity and debt markets through his experience at both large and junior resource companies including Arrow Energy, Australian Future Energy, Santos, and KPMG. John McBride CEO Central Lime Project John is a seasoned executive with a robust background in the global materials sector, covering technical, operational, and commercial roles. As the former CEO of Sibelco’s Lime Division and President of APAC at Graymont, he has been pivotal in driving corporate growth and innovation in lime solutions. His tenure is marked by strategic achievements, including leading Graymont’s expansion in the Asia Pacific, reconfiguring supply chains, and spearheading strategic plans for sustained growth. He also launched successful greenfield projects in Indonesia and the Philippines, enhancing Sibelco’s market presence and revenue. Furthermore, McBride established Graymont's global procurement function, significantly impacting cost control and operational efficiency. Keith Downham CEO Industrial Sands Keith has demonstrated strong corporate governance and led the development of projects and operations for a number of companies in Australia, Indonesia, and the UK over the past 35 years. He was responsible for the approval and construction of Peabody Energy’s 9 Mtpa world class Wilpinjong Mine in NSW, Australia and then after a period of growth he oversaw its successful expansion to 14 Mtpa. Another key cornerstone to Keith’s career has been the successful delivery of projects and operations in remote parts of Indonesia which enabled him to establish a high-level network in Southeast Asia. Darren Lockyer Darren is a high-profile retired sports star and former Australian Rugby League For personal use only
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22 PLC Annual Report 2025 Head of Business Affairs captain, PNG’s most popular sport. He has experience working with communities, businesses and government in various capacities and enjoys an extremely large following in PNG following his achievements as a player and respected leader. Tom Charlton Chief Geologist Tom is a geologist with over 25 years of mineral exploration experience. He has worked in PNG since 1997, working at the Department of Mines for 4 years on a World Bank project compiling PNG’s geological database. Mr Charlton has worked for various private and publicly listed exploration companies. Mr Charlton has worked with the Company since its inception in 2011. Lime and Cement Advisory Board PLC also have a highly experienced and well credentialled lime and cement advisory board comprising some of the industry’s leading operational executives. Bruno Wauters Bruno is a senior industrial minerals industry executive. He was formerly CEO of Sibelco Asia and has over 20 years’ experience in the industry (including lime). He led the development from scratch of 27 mining and processing operations in nine countries across Asia. He is a co-founder of MCSL, which has aggregate, calcite, and lime operations in Laos. He is currently based in Indonesia. Brad Lemmon Brad has over 30-year experience in the construction materials and mining services industries, bringing a range of skills, spanning operations & logistics, commercial and strategy, with key strengths in building high performing teams and capturing growth opportunities. Having held several leadership and executive positions within Adelaide Brighton Ltd, Brad has gained extensive background knowledge and contacts, particularly within the Cement, Clinker, and lime industries. Campbell Jones Campbell is a seasoned executive with over 30 years’ experience at the CEO level with international experience including seven years in North America with companies generating multi-billion-dollar revenues. He has held various executive and board positions in prominent Australian and USA based industrial mineral companies such as Sibelco, Unimin Corporation, Covia Holdings, and Greentech Minerals. Trent Alexander Trent has previous senior leadership positions with Brickworks, Hanson, Adelaide Brighton, and Orica. His background spans technical, operational, and commercial responsibilities in the delivery of concrete manufacturing facilities and quarries. Mr Alexander was instrumental in the successful delivery of the first independent bulk cement import terminal in Queensland Australia. For personal use only
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23 Company Overview & Strategy Leadership Reports Operational & Portfolio Review ESG & Sustainability Governance & Leadership Financial Performance Shareholder & Corporate Information Highlights Financials Performance & reports Audited Financial Statements Pacific Lime and Cement Limited (Co. Reg. No. 201114015W) and Its subsidiaries (Formerly Mayur Resources Limited) Financial statements for the financial year ended 30 June 2025 (note these accounts were released on ASX on 26 September 2025) Contents Directors’ Statement 24 Independent Auditor’s Report 28 Consolidated Statement of Profit or Loss and Other Comprehensive Income 32 Consolidated Balance Sheet 33 Balance Sheet 34 Consolidated Statement of Changes in Equity 35 Statement of Changes in Equity 36 Consolidated Statement of Cash Flows 37 Notes to the Financial Statements 38 For personal use only
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24 PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) DIRECTORS’ STATEMENT The directors present their statement to the members together with the audited consolidated financial statements of Pacific Lime and Cement Limited (formerly Mayur Resources Limited ) (the ‘Company’), and its subsidiaries (collectively the ‘Group’) and the balance sheet and statement of changes in equity of the Company for the financial year ended 30 June 2025. Opinion of the directors In the opinion of the directors, (i) the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company as set out on pages 32 to 87 are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at 30 June 2025 and of the financial performance, changes in equity and cash flows of the Group and changes in equity of the Company for the financial year then ended in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”); and (ii) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. Directors The directors in office at the date of this statement are: Richard Anthony Pegum Executive Chairman Paul Levi Mulder Managing Director Timothy Elgon Savile Crossley Executive Director Christopher Charles Indermaur Non-Executive Independent Director Musje Moses Werror Executive Director Wong Fang Shyan Non-Executive Independent Director All of the abovenamed directors each held office for the whole of the financial year under review and up to the date of this Directors Statement. In accordance with Article 9 1 of the Company’s Articles of Association, Messrs Paul Levi Mulder and Wong Fang Shyan retire, and, being eligible, offer themselves for re-election. Arrangements to enable directors to acquire benefits Except as described below, neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. The Company has established a shared- based Employee Incentive Plan ( “EIP”) to assist in the motivation, retention and reward of employees and key contractors . The EIP is designed to align the interests of executives , senior management and key contractors with the interests of shareholders by providing an opportunity for the participants to receive an equity interest in the Company. The EIP permits the grant of the following types of awards: • performance rights; • options; and • loan funded shares. (collectively referred to as “awards”) During the year ended 30 June 2025, the Company issued the following awards under the EIP: Number issued Exercise Price Vested performance rights awarded to employees as salary (Salary Sacrifice Rights) (i) – Nil Long term incentive rights (ii) 63,025,000 Nil Loan funded shares (iii) 800,000 Nil For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) DIRECTORS’ STATEMENT 25 Arrangements to enable directors to acquire benefits (continued) (i) Salary sacrifice rights In prior financial periods, salary sacrifice rights were granted to non-executive directors, employees, and key contractors to receive shares in respect of a portion of their agreed annual remuneration. Each salary sacrifice right entitled the holder to receive one share. The salary sacrifice rights were issued on a quarterly basis and vested twelve months after issue of individual tranches and were able to be exercised for NIL consideration at any time after being granted but prior to the expiry date of the rights. No such salary sacrifice rights were issued during the financial year ended 30 June 2025 (1,205,612 salary sacrifice rights were issued and exercised during the year ended 30 June 2024) . There were no outstanding salary sacrifice rights to directors as at the end of the financial years 2025 and 2024. (ii) Long term incentive performance rights Performance rights are also offered as part of a Long -Term Incentive Plan to employees, executive and non-executive directors, key contractors, and consultants, to acquire shares in the Company. The rights will vest subject to the relevant performance measures being met and the participant remaining employed or engaged. The performance rights have a A $nil exercise price and an expiry date of 5 years (subject to vesting) from the grant date and are subject to vesting conditions. Should any of the Vesting Conditions not be met, the Awards related to that specific Tranche will lapse and be forfeited. Further details regarding the performance rights issued during the year are provided in Note 18 to the financial statements. The following directors, who held office at the end of the financial year, had, ac cording to the register of directors’ shareholdings required to be kept under S ection 164 of the Act, an interest in long term incentive performance rights of the Company as stated below, which were all approved at the Annual General Meetings of the Company held in December 2023 and/or December 2024: Long term incentive rights registered in the name of directors Name of directors At 1.7.2024 At 30.6.2025 Paul Levi Mulder 10,000,000 10,000,000 Timothy Elgon Savile Crossley 5,000,000 3,500,000 Richard Anthony Pegum 10,000,000 11,667,000 Musje Moses Werror 2,250,000 4,750,000 Christopher Charles Indermaur 2,250,000 4,750,000 (iii) Loan funded shares The Company can issue loan funded shares to eligible employees (including employees, executives, and key contractors) selected by the Board. Pursuant to the terms of the Employee Incentive Plan, employees are granted an interest-free limited recourse loan to assist in the purchase of s hares, with the s hares acquired at their market value. The loan is limited recourse so that at any time the employee may divest their s hares in full satisfaction of the loan balance. There were no loan funded shares on issue to Directors as at 30 June 202 4 or 30 June 2025. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) DIRECTORS’ STATEMENT 26 Directors’ interests in shares or debentures The directors of the Company holding office at the end of the financial year had no interests in the shares and debentures of the Company and related corporations as recorded in the Register of Directors’ Shareholdings kept by the Company under Section 164 of the Act except as follows: Shareholdings registered in the name of directors Number of ordinary shares Shareholdings in which a director is deemed to have an interest Name of directors At 1.7.2024 At 30.6.2025 At 1.7.2024 At 30.6.2025 Paul Levi Mulder 9,275,368 14,275,368 46,818,047 71,818,047 Timothy Elgon Savile Crossley 10,093,304 10,093,304 1,795,000 6,795,000 Richard Anthony Pegum - - 11,676,095 31,009,095 During the financial year under review: • Richard Anthony Pegum exercised 6,000,000 unlisted options in the Company with an exercise price of A$0.15 per unlisted option into 6,000,000 fully paid shares in the Company; • Richard Anthony Pegum exercised 3,333,000 unlisted long term incentive performance rights in the Company with an exercise price of A$NIL per unlisted long term incentive performance right into 3,333,000 fully paid shares in the Company; • Richard Anthony Pegum exercised 10,000,000 unlisted long term incentive performance rights in the Company with an exercise price of $AUD NIL per unlisted long term incentive performance right into 10,000,000 fully paid shares in the Company; • Paul Levi Mulder exercised 10,000,000 unlisted long term incentive performance rights in the Company with an exercise price of A $NIL per unlisted long term incentive performance right into 10,000,000 fully paid shares in the Company; • Paul Levi Mulder exercised 20,000,000 unlisted long term incentive performance rights in the Company with an exercise price of A $NIL per unlisted long term incentive performance right into 20,000,000 fully paid shares in the Company; and • Timothy Elgon Savile Crossle y exercised 5,000,000 unlisted long term incentive performance rights in the Company with an exercise price of A$NIL per unlisted long term incentive performance right into 5,000,000 fully paid shares in the Company. Except as disclosed in the above tables and the additional information outlined above, there was no change in any of the above -mentioned interests in the Company between the end of the financial year and the date of this statement. Except as disclosed in this report, no director who held office at the end of the financial year had an interest in shares, share options, warrants or debentures of the Company, or of related corporations, either at the beginning of the financial year, or date of appointment if later, or at the end of the financial year. Audit, Risk and Compliance Committee The Audit, Risk and Compliance C ommittee ( “ARCC”) carried out its functions in accordance with S ection 201B(5) of the Act, including the following: • Reviewed the audit plans of the external auditors of the Group and the Company, and the assistance given by the Group and the Company’s management to the external auditors; • Reviewed the half -yearly and annual financial statements and the auditor’s report on the annual financial statements of the Group and the Company before their submission to the board of directors ; • Reviewed effectiveness of the Group and the Company’s material internal controls, including financial, operational and compliance controls; • Met with the external auditor, other committees, and management in separate executive sessions to discuss any matters that these groups believe should be discussed privately with the A RCC; For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) DIRECTORS’ STATEMENT 27 Audit, Risk and Compliance Committee (continued) • Reviewed legal and regulatory matters that may have a material impact on the financial statements, related compliance policies and programmes and any reports received from regulators ; • Reviewed the cost effectiveness and the independence and objectivity of the external auditor ; • Reviewed the nature and extent of non-audit services provided by the external auditor; • Recommended to the board of directors the external auditor to be nominated, approved the compensation of the external auditor, and reviewed the scope and results of the audit; and • Reported actions and minutes of the ARCC to the board of directors with such recommendations as the ARCC considered appropriate. The ARCC, having reviewed all non-audit services provided by the external auditor to the Group, is satisfied that the nature and extent of such services would not affect the independence of the external auditor. The ARCC comprises the whole of the Board of Directors, who convene as the ARCC. The ARCC convened two meetings during the year. The ARCC has also met with the external auditors, without the presence of the Company’s management, twice per year. Independent auditor The independent auditor, Baker Tilly TFW LLP, has expressed its willingness to accept re-appointment. On behalf of the Board of Directors Paul Levi Mulder Richard Anthony Pegum Managing Director Executive Chairman 26 September 2025 26 September 2025 For personal use only
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28 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Pacific Lime and Cement Limited (the “Company”) and its subsidiaries (the “Group”) as set out on pages 32 to 87, which comprise the balance sheets of the Group and the Company as at 30 June 2025 and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group and the statement of changes in equity of the Company for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion, the accompanying consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”) so as to give a true and fair view of the consolidated financial position of the Group and the financial position of the Company as at 30 June 2025 and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group and of the changes in equity of the Company for the financial year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current financial year . These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For personal use only
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29 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) (continued) Report on the Audit of the Financial Statements (continued) Key Audit Matters (continued) (A) Impairment of exploration and evaluation expenditure Refer to Notes 2(o), 3 and 10 to the financial statements The Group is involved in exploration and evaluation activities with a focus on Cement and Lime, Industrial Sands and Coal and Power. The Group has exploration licenses and prospective projects in Papua New Guinea. Exploration and evaluation expenditure totaling A$70,552,927 as disclosed in Notes 3 and 10 represent a significant balance recorded in the consolidated balance sheet. SFRS(I) 6 Exploration for and Evaluation of Mineral Resources requires the exploration and evaluation assets to be assessed for impairment when facts and circumstances suggest that the carrying amount may exceed its recoverable amount. As described in Note 3 to the financial statements, management performed assessment of impairment at 30 June 2025 in accordance with the accounting policy disclosed in Note 2(o) which required management to make certain estimates and assumptions as to future events and circumstances. Our procedures included, amongst others: Evaluated the Group’s accounting policy to ensure compliance with the requirements of SFRS(I) 6 Exploration for and Evaluation of Mineral Resources; Reviewed the status of ongoing exploration programmes and future intentions for the areas of interest, including future budgeted expenditures and related work programmes; Enquired of management and reviewed ASX announcements and minutes of directors’ meetings to ensure the Group had not decided to discontinue exploration and evaluation at its areas of interest; Evaluated reasonableness of management’s assessment of impairment, including consideration of successful renewal of expired/expiring exploration licences. For licence renewals pending at the end of the reporting period, we inspected whether applications were submitted within the required timeframes and in line with the relevant legislation; Considered whether the Group’s right to explore was current by inspecting supporting documents such as licence agreements; and Verified a sample of additions to the Group’s exploration and evaluation assets for the financial year ended 30 June 2025 to validate evidence of activities carried out. We also assessed the adequacy of the related disclosures made in the financial statements. For personal use only
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30 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) (continued) Report on the Audit of the Financial Statements (continued) Other Information Management is responsible for the other information. The other information comprises the Directors’ Statement as set out on pages 24 to 27 but does not include the financial statements and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report and the 2025 Annual Report, which is expected to be made available to us after that date. Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and , in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in that regard. When we read the 2025 annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions in accordance with SSAs. Responsibilities of Management and Directors for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRS(I), and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the direct ors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. The director’s responsibilities include overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a hi gh level of assurance but is not a guarantee that an audit conducted in accordance with the SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the a ggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. For personal use only
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31 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) (continued) Report on the Audit of the Financial Statements (continued) Auditor’s Responsibilities for the Audit of the Financial Statements (continued) • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expec ted to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. The engagement partner on the audit resulting in this independent auditor’s report is Ong Kian Guan. Baker Tilly TFW LLP Public Accountants and Chartered Accountants Singapore 26 September 2025 For personal use only
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PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the financial year ended 30 June 2025 32 Group Note 2025 A$ 2024 A$ Other income Other income 4 7,659,934 2,003,157 Less: expenses Consultants and contractors (2,541,977) (1,440,880) Staff costs (1,021,615) (328,839) Travel expenses (304,452) (268,717) Reversal of impairment in investment in associate 12 – 3,299,796 Fair value gains - financial assets at fair value through profit or loss 13 4,925,317 – Listing and share registry expenses (330,742) (154,431) Auditors’ remuneration 5(a) (361,006) (310,048) Share-based payments expense 19(b) (4,657,664) (1,313,439) Insurance expense (233,292) (220,910) Investor and public relations expense (342,733) (115,276) Depreciation expense 9 (49,284) (189,953) Foreign currency exchange losses, net (1,443,377) (297,225) Finance charges 5(b) (3,653,838) (2,549,179) Professional fees (2,104,347) (900,634) Project expenditure (644,340) (680,438) Fair value gains/(losses) – derivative financial liabilities 12,17 6,240,698 (1,187,600) Other operating expenses (866,629) (606,765) Share of results of associate, net of tax 12 592 (166,650) Profit/(loss) before tax 271,245 (5,428,031) Tax expense 7 – – Profit/(loss) for the year 271,245 (5,428,031) Other comprehensive income/(loss): Items that are or may be reclassified subsequently to profit or loss Share of foreign currency translation reserve of associate 218,445 147,910 Foreign currency translation reserve reclassified to profit or loss on deemed disposal/reduction of equity interest in associate 148,275 (72,652) 366,720 75,258 Total comprehensive income/(loss) for the year attributable to equity holders of the Company 637,965 (5,352,773) Earnings/(loss) per share Basic and diluted 8 0.05 cents (1.57) cents Diluted 8 (1.06)cents (1.57) cents The accompanying notes form an integral part of these financial statements For personal use only
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33 PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) CONSOLIDATED BALANCE SHEET At 30 June 2025 Group Note 2025 A$ 2024 A$ Non-current assets Plant and equipment 9 582,432 204,332 Exploration and evaluation expenditure 10 70,552,927 48,384,595 Investment in associate 12 – 3,906,992 Financial assets at fair value through profit or loss 13 15,945,640 – Security deposits 118,494 118,494 Deposits 177,680 – Total non-current assets 87,377,173 52,614,413 Current assets Cash and cash equivalents 14 (a) 39,200,071 6,797,342 Other financial assets 14 (b) 41,139,704 – Other receivables 15 4,045,674 2,589,470 Total current assets 84,385,449 9,386,812 Total assets 171,762,622 62,001,225 Current liabilities Trade and other payables 16 5,359,504 3,377,390 Provisions 194,581 – Borrowings 17 8,354,112 12,979,165 Derivative financial liabilities 12 2,767,878 1,187,600 Total current liabilities 16,676,075 17,544,155 Non-current liabilities Borrowings 17 117,916 – Provisions 54,607 19,817 Total non-current liabilities 172,523 19,817 Total liabilities 16,848,598 17,563,972 Net assets 154,914,024 44,437,253 Equity Equity attributable to owners of the Company Share capital 18 179,247,476 79,992,656 Reserves 19 24,272,706 13,322,000 Accumulated losses (48,606,158) (48,877,403) Total equity 154,914,024 44,437,253 The accompanying notes form an integral part of these financial statements. For personal use only
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34 PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD) BALANCE SHEET At 30 June 2025 Company Note 2025 A$ 2024 A$ Non-current assets Plant and equipment – 6,265 Investments in subsidiaries 11 9,179,762 9,179,762 Investment in associate 12 – 3,906,992 Financial assets at fair value through profit or loss 13 15,945,640 – Total non-current assets 25,125,402 13,093,019 Current assets Cash and cash equivalents 14(a) 36,614,945 4,453,405 Other financial assets 14(b) 30,000,000 – Other receivables 15 832,621 330,323 Receivables from subsidiaries 21 58,740,424 23,513,819 Total current assets 126,187,990 28,297,547 Total assets 151,313,392 41,390,566 Current liabilities Trade and other payables 16 1,309,809 1,166,739 Provisions 194,581 – Borrowings 17 8,288,702 12,979,165 Derivative financial liabilities 12 2,767,878 1,187,600 Total current liabilities 12,560,970 15,333,504 Non-current liabilities Provisions – 19,817 Total liabilities 12,560,970 15,353,321 Net assets 138,752,422 26,037,245 Equity Equity attributable to owners of the Company Share capital 18 179,247,476 79,992,656 Reserves 19 30,818,022 20,234,036 Accumulated losses (71,313,076) (74,189,447) Total equity 138,752,422 26,037,245 The accompanying notes form an integral part of these financial statements. For personal use only
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35 PACIFIC LIME AND CEMENT LIMITED (FORMERLY MAYUR RESOURCES LTD) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the financial year ended 30 June 2025 Group 2025 Share capital Reserves Accumulated losses Total equity A$ A$ A$ A$ Balance at 1 July 2024 79,992,656 13,322,000 (48,877,403) 44,437,253 Profit for the year – – 271,245 271,245 Other comprehensive income - Share of foreign currency translation reserve of associate – 218,445 – 218,445 - Foreign currency translation reserve reclassified to profit or loss on deemed disposal – 148,275 – 148,275 Other comprehensive income for the year – 366,720 – 366,720 Total comprehensive income for the year – 366,720 271,245 637,965 Transactions with equity holders recorded directly in equity Issue of ordinary shares (Note 18) 105,922,205 – – 105,922,205 Costs of shares issuance (Note 18) (6,667,385) – – (6,667,385) Share based payments (Note 19(b)) – 10,583,986 – 10,583,986 Transactions with equity holders recorded directly in equity 99,254,820 10,583,986 – 109,838,806 Balance at 30 June 2025 179,247,476 24,272,706 (48,606,158) 154,914,024 Group 2024 Share capital Reserves Accumulated losses Total equity A$ A$ A$ A$ Balance at 1 July 2023 67,576,577 9,706,383 (43,449,372) 33,833,588 Loss for the year – – (5,428,031) (5,428,031) Other comprehensive income - Share of other comprehensive income of associate – 75,258 – 75,258 Total comprehensive loss for the year – 75,258 (5,428,031) (5,352,773) Transactions with equity holders recorded directly in equity Issue of ordinary shares (Note 18) 13,393,113 – – 13,393,113 Costs of shares issuance (Note 18) (977,034) – – (977,034) Share based payments (Note 19(b)) – 3,540,359 – 3,540,359 Transactions with equity holders recorded directly in equity 12,416,079 3,540,359 – 15,956,438 Balance at 30 June 2024 79,992,656 13,322,000 (48,877,403) 44,437,253 The accompanying notes form an integral part of these financial statements. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD) STATEMENT OF CHANGES IN EQUITY For the financial year ended 30 June 2025 36 Company 2025 Share capital Reserves Accumulated losses Total equity A$ A$ A$ A$ Balance at 1 July 2024 79,992,656 20,234,036 (74,189,447) 26,037,245 Profit for the year – – 2,876,371 2,876,371 Total comprehensive income for the year – – 2,876,371 2,876,371 Transactions with equity holders recorded directly in equity Issue of ordinary shares (Note 18) 105,922,205 – – 105,922,205 Costs of shares issuance (Note 18) (6,667,385) – – (6,667,385) Share based payments (Note 19(b)) – 10,583,986 – 10,583,986 Transactions with equity holders recorded directly in equity 99,254,820 10,583,986 – 109,838,806 Balance at 30 June 2025 179,247,476 30,818,022 (71,313,076) 138,752,422 Company 2024 Share capital Reserves Accumulated losses Total equity A$ A$ A$ A$ Balance at 1 July 2023 67,576,577 16,693,677 (64,776,865) 19,493,389 Loss for the year – – (9,412,582) (9,412,582) Total comprehensive loss for the year – – (9,412,582) (9,412,582) Transaction with equity holder recorded directly in equity Issue of ordinary shares (Note 18) 13,393,113 – – 13,393,113 Costs of shares issuance (Note 18) (977,034) – – (977,034) Share based payments (Note 19(b)) – 3,540,359 – 3,540,359 Transaction with equity holder recorded directly in equity 12,416,079 3,540,359 – 15,956,438 Balance at 30 June 2024 79,992,656 20,234,036 (74,189,447) 26,037,245 The accompanying notes form an integral part of these financial statements. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD) CONSOLIDATED STATEMENT OF CASH FLOWS For the financial year ended 30 June 2025 37 Group Note 2025 A$ 2024 A$ Cash flows from operating activities Profit/(loss) before tax 271,245 (5,428,031) Adjustments for: − Interest income 4 (989,172) (68,078) − Share based payments expense 19(b) 4,657,664 1,368,424 − Depreciation expense 9(b) 49,284 189,953 − Gain on reduction of equity interest in associate 4 – (685,833) − Gain on deemed disposal of investment in associate 4 (6,670,762) – − Share of results of associate 12 (592) 166,650 − Gain on extinguishment of liability 4 – (1,249,246) − Reversal of impairment of investment in an associate 12 – (3,299,796) − Fair value gains - financial assets at fair value through profit or loss 13 (4,925,317) – − Amortisation of capitalized borrowing costs 274,910 549,820 − Change in fair value of convertible notes 17 (7,820,976) 438,351 − Unwinding of interest on ACAM Convertible Notes 17 1,173,124 – − Fair value loss – derivative financial liabilities 12 1,580,278 1,187,600 − Interest expenses on borrowings 17 1,418,131 1,321,055 − Bank charges 5(b) 17,664 6,762 − Interest expense on lease liabilities 17 7,597 – − Foreign currency exchange losses, net 1,443,380 297,225 Total adjustments (9,784,787) 222,887 Operating cash flows before movement in working capital (9,513,542) (5,205,144) Change in working capital: − Decrease/(increase) in receivables 683,747 (246,826) − Increase in trade and other payables 1,208,552 675,406 Total changes in working capital 1,892,299 428,580 Cash used in operation (7,621,243) (4,776,564) Interest received 4 989,172 68,078 Interest paid (17,664) (6,762) Net cash used in operating activities (6,649,735) (4,715,248) Cash flows from investing activities Payments for plant and equipment Note A (415,967) (63,307) Payments for exploration and evaluation expenditure 10 (15,618,174) (9,697,666) Payment for equipment on behalf of contracted party (1,139,951) – Investment in term deposits and treasury bills 14 (41,402,755) – Loan to director associated company 15 (1,000,000) – Proceeds from partial disposal of investment in associate 12 – 332,888 Net cash used in investing activities (59,576,847) (9,428,085) Cash flows from financing activities Proceeds from share issued 18 101,240,500 11,939,800 Cost of issuing shares 18 (6,580,340) (58,837) Prepaid borrowing costs – (28,558) Proceeds from convertible notes 17(c) 14,936,554 – Proceeds from borrowings 17 – 9,250,000 Repayment of borrowings 17 (9,250,000) – Costs of issuing borrowings – (231,250) Interest paid for borrowings (843,904) (543,595) Payment of lease liabilities 17 (13,368) – Repayment of convertible notes 17 – (3,231,211) Net cash from financing activities 99,489,442 17,096,349 Reconciliation of cash and cash equivalents Cash and cash equivalents at beginning of financial year 14 6,797,342 4,141,551 Net increase in cash and cash equivalents 33,262,860 2,953,016 Foreign exchange difference on cash and cash equivalents (860,131) (297,225) Cash and cash equivalents at end of financial year 14 39,200,071 6,797,342 Note A: Payment for plant and equipment includes purchase of plant and equipment of A$238,287 as disclosed in Note 9(b) to the financial statements and deposits paid of A$177,680. The accompanying notes form an integral part of these financial statements. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 38 1. Corporate information Pacific Lime and Cement Limited (formerly Mayur Resources Ltd ) (the “Company” ) (Co. Reg. No. 201114015W), is a public company incorporated in Singapore. On 21 September 2017, the Company was listed on the Australian Securities Exchange (“ASX”) under ticker code MRL. With effective from 23 July 2025, the Company’s name was changed from “Mayur Resources Ltd” to “Pacific Lime and Cement Limited ” and with effective from 12 August 2025, the Company commenced trading on ASX under ticker code PLA. The registered office of the Company is located at 9 Raffles Place, #26-01, Republic Plaza, Singapore 048619. The principal place of business is located at Level 7, 300 Adelaide Street, Brisbane QLD, 4000, Australia. The principal activity of the Company is investment holding. The Group is involved in exploration and evaluation activities with a focus on Cement and Lime, Iron and Industrial Sands, and Renewable Energy . The Group has exploration licenses and prospective projects in Papua New Guinea. The principal activities of the subsidiaries and associate are disclosed in Notes 11 and 12 to the financial statements respectively. 2. Material accounting policies (a) Basis of preparation The financial statements are presented in Australian dollars (“A$”), which is the Company’s functional currency. The financial statements have been prepared in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”). The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below. The preparation of financial statements i n conformity with SFRS(I) requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of reven ues and expenses during the financial year. Although these estimates are based on management’s best knowledge of current events and actions and historical experiences and various other factors that are believed to be reasonable under the circumstances, actual results may ultimately differ from these estimates The Company’s separate financial statements have been prepared on the same basis, and as permitted by the Act, the Company’s separate statement of profit or loss and other comprehensive income is not presented. Use of estimates and judgements The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and futur e periods if the revision affects both current and future periods. The areas involving a higher degree of judgement in applying accounting policies, or areas where assumptions and estimates have a significant risk of resulting in material adjustment within the next financial year are disclosed in Note 3. The carrying amounts of cash and cash equivalents, other financial assets, other receivables, trade and other payables approximate their respective fair values due to the relatively short -term maturity of these financial instruments. New and revised standards that are adopted In the current financial year, the Group has adopted all the new and revised SFRS(I) and Interpretations of SFRS(I) (“INT SFRS(I)”) that are relevant to its operations and effective for the current financial year. Changes to the Group’s accounting policies have been made as required, in accordance with the transitional provisions in the respective SFRS(I) and INT SFRS(I). For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 39 2. Material accounting policies (continued) (a) Basis of preparation (continued) New and revised standards that are adopted (continued) The adoption of these new and revised SFRS(I) and INT SFRS(I) did not have any material effect on the financial results or position of the Group and the Company. New and revised standards not yet effective New standards, amendments to standards and interpretations that have been issued at the end of the reporting period but are not yet effective for the financial year ended 30 June 2025 have not been applied in preparing these financial statements. None of t hese are expected to have a significant effect on the financial statements of the Group and the Company except as disclosed below: SFRS(I) 18 Presentation and Disclosure in Financial Statements SFRS(I) 18 will replace SFRS(I) 1 -1 Presentation of Financial Statements for annual reporting period beginning on or after 1 January 2027, with earlier application permitted. It requires retrospective application with specific transition provisions. The new standard introduces the following key requirements: • Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present subtotals and totals for “operating profit”, “profit or loss before financing and income taxes”, and “profit or loss” in the statement of profit or loss. • Management-defined performance measures (“MPMs”) are disclosed in a single note within the financial statements. This note includes details on how the measure is calculated, the relevance of the information provided to users, and a reconciliation to the most comparable subtotal specified by the SFRS(I). • Enhanced guidance on aggregating and disaggregating information in financial statements. In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method. The Group is in the process of assessing the impact of the new standard on the primary financial statements and notes to the financial statements. b) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In the Company’s balance sheet, investments in subsidiaries are accounted for at cost less accumulated impairment losses. On disposal of the investments, the difference between disposal proceeds and the carrying amount of the investments are recognised in profit or loss. c) Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the balance sheet date. Subsidiaries are consolidated from the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting date as the parent company. Consistent accounting policies are applied for like transactions and events in similar circumstances. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 40 2. Material accounting policies (continued) c) Basis of consolidation (continued) Intragroup balances and transactions, including income, expenses, and dividends, are eliminated in full. Profits and losses resulting from intragroup transactions that are recognised in assets, such as inventory and property, plant, and equipment, are eliminated in full. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. d) Basis of combination Business combinations are accounted for using the acquisition method. The consideration transferred for the acquisition comprises the fair value of the assets transferred, the liabilities incurred, and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are recognised as expenses as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the fair value of the consideration transferred in the business combination, the amount of any non-controlling interest in the acquiree (if any) and the fair value of the Group’s previously held equity interest in the acquiree (if any), over the fair value of the net identifiable assets acquired is recorded as goodwill. In instances where the latter amount exceeds the former, the excess is recognised as a gain on bargain purchase in profit or loss on the date of acquisition. e) Investments in associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately. The statement of profit or loss reflects the Group’s share of the results of operations of the associate. Any change in other comprehensive income of those investees is presented as part of the Group’s other comprehensive income. In addition, when there ha s been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss within ‘Share of profit of an associ ate’ in the statement of profit or loss. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 41 2. Material accounting policies (continued) e) Investments in associates (continued) Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the ret ained investment and proceeds from disposal is recognised in profit or loss. In the Company’s separate financial statements, investments in associates are carried at cost less accumulated impairment loss. On disposal of an investment in an associate, the difference between the disposal proceeds and the carrying amount of the investment is recognised in profit or loss. f) Foreign currency Functional and presentation currency Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements of the Group and the Company are presented in Australian dollars, which is the Company’s functional currency. Transactions and balances Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss, except for currency translation differences on net investment in foreig n operations and borrowings and other currency instruments qualifying as net investment hedges for foreign operations, which are included in the currency transaction reserve within equity in the consolidated financial statements. Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined. Translation of Group entities’ financial statements The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the Group’s presentation currency are translated into the presentation currency as follows: (a) Assets and liabilities are translated at the closing rates at the date of the balance sheet; (b) Income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and (c) All resulting exchange differences are recognised in the currency translation reserve within equity. On consolidation, exchange differences arising from the translation of the net investment in foreign operations (including monetary items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency instrum ents designated as hedges of such investments, are taken to the foreign currency translation reserve. On disposal of a foreign group entity, the cumulative amount of the currency translation reserve relating to that foreign entity is reclassified from equity and recognised in profit or loss when the gain or loss on disposal is recognised. g) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short -term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 42 2. Material accounting policies (continued) h) Share capital and share issuance expenses Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital. i) Financial assets Recognition and derecognition Regular purchases and sales of financial assets are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of the financial a ssets on initial recognition. Transaction costs directly attributable to acquisition of financial assets at fair value through profit or loss are recognised immediately in profit or loss. Classification and measurement All financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets. The Group classifies its financial assets based on the Group’s business model for managing the financial asset and the contractual cash flow characteristics of the financial assets. The Group classifies its financial assets in the following measurement categories: • at amortised cost which comprise other receivables and cash and cash equivalents; and • as fair value through profit or loss (“FVTPL”) which comprise investment in quoted equity shares. Financial assets at amortised cost are subsequently measured using the effective interest rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified, or impaired. Interest i ncome from these financial assets is included in interest income using the EIR method. Impairment The Group recognises an allowance for expected credit losses (“ECLs”) for financial assets carried at amortised cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit loss es that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The Group recognises an impairment gain or loss in profit or loss for all financial assets with a corresponding adjustment to their carrying amount through a loss allowance account. Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset, and the net amount presented on the balance sheet when, and only when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 43 2. Material accounting policies (continued) j) Financial liabilities Financial liabilities include trade and other payables and borrowings. Financial liabilities are recognised on the balance sheet when, and only when, the Group becomes a party to the contractual provisions of the financial instruments. Financial liabilitie s are initially recognised at fair value minus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. A financial liability is derecognised when the obligation under the liability is extinguished. Gains and losses are recognised in profit or loss when the liabilities are derecognised and through the amortisation process. Financial liabilities are classifie d as current liabilities unless the Group has right to defer settlement of the liability for at least twelve months after the reporting period. k) Convertible notes Convertible notes issued by the Group consist of a debt host liability component and derivative liability components. The component parts are classified as financial liabilities in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the derivative liability components are estimated using the Black scholes model and an embedded derivative liability relating to the conversion feature of the facility, and an embedded derivative liability relating to the foreign currency feature of the facility at fair value (funds advanced in United States Dollars but convertible into issued shares based in Australian Dollars) are identified. These amounts are recorded as a liability at fair value, and is subsequen tly remeasured at the end of each financial period with changes in fair value recognised in profit or loss. At the date of issue, the fair value of the debt host liability component is determined by deducting the amount of the derivative liability components from the fair value of the convertible bonds as a whole. This is recorded as a liability on an amortised cost basis until extinguished upon conversion or at the instrument’s maturity date. The classification of the convertible notes as either current or non-current is determined by the conversion rights held by the instrument's holders. If the holders have the right to convert at any time, the liability is classified as a current liability because the Group does not have the right to defer settlement of the host liability for a period of at least twelve months after the reporting period. l) Derivative financial instruments Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of the financial year. The resulting gain or loss is recognised in profit or loss immediatel y unless the derivative is designated and effective as a hedging instrument, and if so, the timing of the recognition in profit or loss depends on the nature of the hedge relationship. m) Impairment of non-financial assets At each reporting date, the Group and the Company review the carrying amounts of its non- financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group and the Company estimate the recoverable amount of the cash- generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre -tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset (or cash -generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 44 2. Material accounting policies (continued) m) Impairment of non-financial assets (continued) Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash -generating unit) in prior years. A previously recognised impairment loss for an asset other than goodwill is only reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. A reversal of an impairment loss is recognised immediately in the profit or loss. n) Plant and equipment Plant and equipment are stated at cost and subsequently carried at cost less accumulated depreciation and any impairment in value. The cost of plant and equipment initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. On disposal of an item of plant and equipment, the difference between the net disposal proceeds and its carrying amount is taken to the profit or loss. The depreciable amount of all plant and equipment is depreciated over their estimated useful lives commencing from the time the asset is held ready for use. Useful lives of plant and equipment typically range from 3 to 5 years. Fully depreciated assets are retained in the financial statements until they are no longer in use. The residual values, estimated useful lives and depreciation method are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognised in the profit or loss when the changes arise. o) Exploration and evaluation expenditure Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. Costs incurred before the Group has obtained legal rights to explore an area are expensed in the profit or loss. Exploration and evaluation assets are only recognised if the rights to the area of interest are current and either: (i) the expenditures are expected to be recouped through successful development and exploitation of the area of interest or by its sale; or (ii) activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and the facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash -generating units to which the exploration activity relates. The cash-generating unit shall not be larger than the area of interest. Once technical feasibility and commercial viability of the area of interest are demonstrable and a decision of Final Investment Decision has been made by the Board of Directors, exploration and evaluation assets attributable to that area are first tested f or impairment and then reclassified from exploration and evaluation assets to property and development assets within property, plant, and equipment or intangible assets, as applicable. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 45 2. Material accounting policies (continued) p) Share based compensation The economic entity makes equity-settled share-based payments to directors, employees, key contractors, and other parties where appropriate and required. Where applicable, the fair value of the equity is measured at grant date and recognised as an expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using the Black Scholes option valuation pricing model which incorporates all market vesting conditions. Where applicable, the number of shares and options expected to vest is reviewed and adjusted at each reporting date such that the amount recognised for services received as consideration for the equity instruments granted s hall be based on the number of equity instruments that eventually vest. Where the fair value of services rendered by other parties can be reliably determined, this is used to measure the equity-settled payment. q) Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incurs expenses, including revenues and expenses that relate to transactions with other components of the Group. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the directors. r) Employee benefits Employee leave entitlements Employee entitlements to annual leave and long service leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave and long -service leave as a result of services rendered by employees up to the balance sheet date. Defined contribution plans Defined contribution plans are post -employment benefit plans under which the Group pays fixed contributions into separate entities such as the Central Provident Fund and will have no legal or constructive obligation to pay further contributions once the contributions have been paid. Contributions to defined contribution plans are recognised as an expense in the period in which the related service is performed. s) Provisions for other liabilities Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic resources will be required to settle that obligation and the amount can be estimated reliabl y. Provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the balance sheet date. Where the effect of the time value of money is material, the amount of the provision shall be discounted to present val ue using a pre-tax discount rate that reflects the current market assessment of the time value of money and risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost in the profit or loss. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 46 3. Critical accounting judgements and key sources of estimation uncertainty Critical accounting judgements In the process of applying the Group’s accounting policies, management has made the following judgements that have the most significant effect on the amounts recognised in the financial statements (apart from those involving estimations which are described in the subsequent paragraphs). Impairment of exploration and evaluation expenditure At 30 June 2025, the carrying value of exploration and evaluation assets of the Group was A$70,552,927 (2024: A$48,384,595). Exploration and evaluation assets are assessed for impairment in accordance with the accounting policy disclosed in Note 2( o). The accounting policy requires management to make certain estimates and assumptions as to future events and circumstances. These estimates and assumptions may change as new information becomes available. If, after having capitalised expenditure under t he accounting policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be expensed in the statement of profit or loss and other comprehensive income. As at 30 June 2025, each of the Group’s nine mineral exploration licences were under application for renewal. The Group believes it has complied with all licence conditions, including minimum expenditure requirements, and is not aware of any matters or circumstances that have arisen that would result in the Group’s application for renewal of the exploration licences not being granted in the ordinary course of business. The Group has determined that no impairment of the capitalised exploration and evaluation expenditure relating to these exploration licences is necessary as it is considered that there is a reasonable basis to expect that the renewal applications will be granted and that the Group is otherwise proceeding with exploration and development activities on the exploration licences. Should any of the exploration licences not be renewed, the relevant capitalised amount as at 30 June 2025 will be expensed in the statement of profit or loss and other comprehensive income. Exploration and evaluation assets are set out in Note 10. During the year ended 30 June 2025 and 30 June 2024, there was no impairment as no exploration tenements were relinquished. Significant Influence over Adyton Resources Corporation During the financial year, Adyton Resources Corporation undertook an equity capital raise, which as a consequence of the completion of the capital raising (in which the Company did not participate), the Company’s shareholding interest in Adyton was reduced to approximately 19.6%. The directors of the Company assessed and concluded that approximately 19.6% ownership interest in Adyton Resources Corporation as at the end of the financial year did not provide the Company with significant influence over Adyton Resources Corporation. As a result, the investment was reclassified from an equity-accounted investment to a financial asset measured at fair value through profit or loss (FVTPL) under SFRS(I) 9. Prior period figures have not been restated, as the change in classification was prospective. Deferred tax assets No members of the Group have generated taxable income in the financial year and as such the Group continues to carry forward tax losses that give rise to deferred tax assets. Given that the Group’s projects remain in early exploration stages, it is unlikely that the Group will generate taxable income in the foreseeable future in the absence of asset sales. Taking account of the above, the deferred tax assets have not been recognised in the financial statements as management does not believe that the members of the Group satisfy the recognition criteria set out in SFRS(I) 1-12. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 47 3. Critical accounting judgements and key sources of estimation uncertainty (continued) Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. Shared based payments The Group measures the cost of equity- settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. Fair value is calculated using the Black Scholes valuation model, considering the terms and conditions upon which the options were granted. The assumptions used in these valuation models are set out in Note 19(b). Where the vesting of share -based payments contains performance based and market -based milestones, in estimating the number and fair value of the equity instruments issued, the Group assesses the probability of the milestones being met, and therefore the pr obability of the instruments vesting. Management applies judgement to arrive at the probabilities that are applied to these instruments. These estimates will be adjusted over time to reflect actual performance and management’s best estimates of the condi tions being met. Calculation of loss allowance When measuring the expected credit loss (“ECL”), the Group and Company use reasonable and supportable forward-looking information, which is based on assumptions and forecasts of future economic conditions with consideration on the impact of macro uncertainties and how these conditions are expected to affect the Group’s and the Company’s ECL assessment. Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit enhancements. Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions, and expectations of future conditions. As the calculations of loss allowances on other receivables and receivables from subsidiaries are subject to assumptions and forecasts, any changes to these estimations will affect the amounts of loss allowance recognised and the carrying amounts of other receivables and receivables from subsidiaries. Details of ECL measurement and carrying value o f other receivables and receivables from subsidiaries at the end of the financial year are disclosed in Notes 15, 21 and 22 respectively. 4. Other income Group 2025 2024 A$ A$ Interest income – cash and cash equivalents 11,507 68,078 Interest income – other financial assets 977,665 – Gain on extinguishment of the existing liability – 1,249,246 Gain on reduction of equity interest in associate – 685,833 Gain on deemed disposal of investment in associate 6,670,762 – 7,659,934 2,003,157 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 48 5. (a) Auditor’s remuneration Group 2025 2024 A$ A$ Audit fees: - Auditor of the Company 136,005 140,311 - Other auditors – network firm 136,811 114,507 Non-audit fee: - Auditor of the Company 38,190 25,230 - Other auditors – network firm 50,000 30,000 361,006 310,048 5. (b) Finance charges Group 2025 2024 A$ A$ Bank charges 17,664 6,762 Amortisation of borrowing costs 274,910 549,820 Interest expense on Lease Liabilities for right of use assets 7,597 – Interest expense on ACAM Convertible Notes 1,173,124 – Interest expense on Santos Facility 916,350 435,335 Interest expense on Loan Facility 501,781 885,718 Change in fair value of convertible notes – 438,351 Other borrowing costs 762,412 233,193 3,653,838 2,549,179 6. Segment information For management purposes, the Group is organised into the following business units: • Cement and Lime which includes limestone and the Central Cement and Lime Project; • Iron and Industrial Sands which includes construction sands, magnetite sand and heavy mineral sands. The focus of this business unit is the development of the Orokolo Bay Iron and Industrial Sands Project located along the southern coast of Papua New Guinea; • Coal and P ower comprising the Depot Creek coal resource in the Gulf Precinct of Papua New Guinea and which is developing a proposal for vertically integrated domestic power projects in Papua New Guinea with an initial focus on the Lae region; • Renewables which comprises investment in nature based forestry carbon credit projects, and proposed future solar and geothermal projects; and • Corporate which provides Group-level corporate services, investment and treasury functions. Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on actual expenditure incurred, including capitalised expenditure which differs from operating profit or loss reported in the consolidated financial statements. The Chief Operating Decision Maker assesses the performance of the operating segments based on a measure of gross expenditure that includes both expenditure that is capitalised in these financial statements and expenditure that is expensed in the statement of profit or loss and other comprehensive income in these financial statements. The measurement of gross expenditure does not include the impairment of exploration expenditure or non-cash items such as depreciation expense and share based payments expense. Interest and other items of revenue are allocated to the corporate segment. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 49 6. Segment information (continued) Cement and Lime Iron and Industrial Sands Coal and Power Renewables Corporate Consolidate d Financial Statements A$ A$ A$ A$ A$ A$ Group 2025 Results: Interest income 123,052 – 11,507 – 854,613 989,172 Finance charges (10,755) (45) (134) (77) (3,642,827) (3,653,838) Depreciation (37,766) – (1,169) (4,084) (6,265) (49,284) Share-based payments expense – – (101,679) (80,712) (4,475,273) (4,657,664) Gain on deemed disposal of investment in associate – – – – 6,670,762 6,670,762 Fair value gain on financial assets at fair value through profit or loss – – – – 4,925,317 4,925,317 Share of result of associate – – – – 592 592 Fair value–gain - derivative financial liabilities – – – – 6,240,698 6,240,698 Segment loss (3,644,973) (358,047) (548,269) (965,726) 5,788,260 271,245 Assets: Exploration and evaluation expenditure 37,389,460 25,932,864 7,230,603 – – 70,552,927 Financial assets at fair value through profit and loss – – – – 15,945,640 15,945,640 Segment assets 53,628,342 26,251,329 8,328,022 201,865 83,353,064 171,762,622 Segment assets include: Additions to plant and equipment 427,384 – – – – 427,384 Additions to exploration and evaluation expenditure 14,589,333 1,506,564 233,161 – – 16,329,058 Additions to exploration and evaluation expenditure (non-cash) 2,784,659 2,348,329 706,286 – – 5,839,274 Segment liabilities 46,682,770 11,141,364 14,551,196 3,230,962 (58,757,695) 16,848,597 Geographical information The Group’s non- current assets are all located in Papua New Guinea (“PNG”) where all of the exploration and proposed development activities are carried out. Information about major customer The Group is still in the pre -commercialisation stage of its exploration and proposed development activities and therefore no revenue is generated. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 50 6. Segment information (continued) Cement and Lime Iron and Industrial Sands Coal and Power Renewables Corporate Consolidated Financial Statements A$ A$ A$ A$ A$ A$ Group 2024 Results: Interest income – – – – 68,078 68,078 Finance charges – – – – (2,549,179) (2,549,179) Depreciation (5,105) (174,621) (7,635) (2,592) – (189,953) Share-based payments expense – – – – (1,313,439) (1,313,439) Reversal of impairment of investment in associate – – – – 3,299,796 3,299,796 Share of result of associate – – – – (166,650) (166,650) Fair value-loss - derivative financial liabilities – – – – (1,187,600) (1,187,600) Segment loss (213,685) (447,213) (416,844) (827,269) (3,523,020) (5,428,031) Assets: Exploration and evaluation Expenditure 20,015,468 22,077,971 6,330,188 – (39,032) 48,384,595 Investment in associate – – – – 3,906,992 3,906,992 Segment assets 22,061,760 22,447,674 8,654,054 180,789 8,656,948 62,001,225 Segment assets include: Additions to plant and equipment 30,632 – – 32,675 – 63,307 Additions to exploration and evaluation expenditure 7,777,443 1,601,002 289,812 – – 9,668,257 Additions to exploration and evaluation expenditure (non-cash) 610,418 525,422 174,618 – – 1,310,458 Segment liabilities 11,471,320 6,231,241 14,328,959 2,244,160 (16,711,708) 17,563,972 Geographical information The Group’s non- current assets are all located in Papua New Guinea (“PNG”) where all of the exploration and proposed development activities are carried out. Information about major customer The Group is still in the pre -commercialisation stage of its exploration and proposed development activities and therefore no revenue is generated. 7. Tax expense Group 2025 2024 A$ A$ Tax expense attributable to loss of the Group is made up of: Current year income tax – – For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 51 7. Tax expense (continued) The income tax expense on the results of the financial year varies from the amount of income tax determined by applying the applicable statutory rate of income tax to profit/(loss) before tax due to the following factors: Group 2025 2024 A$ A$ Profit/(loss) before income tax 271,245 (5,428,031) Tax at the domestic rates applicable to profits in the countries where the Group operates (200,507) (1,454,112) Expenses not deductible for tax purposes 2,012,001 316,010 Income not assessable for tax purposes (4,903,594) (40,445) Change in unrecognised temporary differences 3,092,100 1,178,547 Tax expense – – The applicable rates of income tax in jurisdictions in which the Group operates range from 25% to 30% for the year ended 30 June 2025 (30 June 2024: 25% to 30%). Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profits will be available against which the related tax benefits can be utilised therefrom . Group 2025 2024 A$ A$ Accruals 306,200 243,200 Provisions 176,300 89,900 Plant and equipment 3,340,000 3,561,000 Others (41,700) – Tax losses 30,185,200 18,865,500 33,966,000 22,762,600 Deferred tax assets do not expire under current legislation. 8. Earnings/(loss) per share The earnings/(loss) per share was calculated based on net profit/(loss) attributable to equity shareholders divided by the weighted average number of ordinary shares. For the purposes of calculating diluted earnings/(loss) per share, profit/(loss) attributable to owners of the Company and the weighted average number of ordinary shares outstanding are adjusted for the effects of all dilutive potential ordinary shares. As at 30 June 2025, the Group’s potential dilutive ordinary shares comprise shares options issued to employees and convertible notes. For share options issued to employees, the weighted average number of shares on issue has been adjusted as if all dilutive share options were exercised, with no adjustments to net profit/(loss). For convertible notes, it is assumed that they have been converted into ordinary shares at issuance and the net profit is adjusted to eliminate the financial effect from the interest expense and fair values gains on the embedded derivatives. The following tables reflect the earnings/( loss) and share data used in the computation of basic and dilute d earnings/(loss) per share for the financial years ended 30 June: For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 52 8. Earnings/(loss) per share (continued) Group 2025 2024 A$ A$ Profit/(loss) attributable to owners 271,245 (5,428,031) Financial effect of convertible notes 6,647,852 – Loss for the purpose of diluted earnings per share (6,376,607) (5,428,031) Number of shares Weighted average number of ordinary shares outstanding for basic earnings/(loss) per share 522,227,674 346,262,362 Effect of dilutive potential ordinary shares from share options and convertible notes 80,576,787 – Weighted average number of ordinary shares for the purposes of diluted earnings/(loss) per share 602,804,461 346,262,362 Basic earnings/(loss) per share (cents) 0.05 (1.57) Diluted earnings/(loss) per share (cents) (1.06) (1.57) 9. Plant and equipment Group 2025 2024 A$ A$ Power plant assets, at cost – – Plant and equipment, net of depreciation 419,239 204,332 Right of use assets, net of depreciation 163,193 – 582,432 204,332 (a) Power plant assets at cost In 2023, the Group impaired the full carrying value of previously capitali sed costs relating to the Lae Power Plant Project, in the amount of A$3,078,803. This decision was made as a result of little to no activity occurring on the project in recent years, and the likelihood that the project would not be able to proceed in the form originally envisaged. While no formal work is being completed on the site, the Group will continue to consider alternative feedstock sources for this project, with the potential for the project to be converted to a biomass powered generation site. (b) Plant and equipment, net of depreciation Group 2025 2024 A$ A$ Balance at 1 July 204,332 330,978 Additions 238,287 63,307 Depreciation (23,380) (189,953) Carrying value at 30 June 419,239 204,332 Cost - At beginning of financial year 506,268 443,429 - At end of financial year 744,555 506,268 Accumulated depreciation - At beginning of financial year (301,936) (112,451) - At end of financial year (325,316) (301,936) Carrying value at 30 June 419,239 204,332 Plant and equipment consist of office equipment, machineries which are individually insignificant. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 53 9. Plant and equipment (continued) (c) Right of use assets, net of depreciation Group 2025 2024 A$ A$ Balance at 1 July – – Additions 189,097 – Depreciation (25,904) – Carrying value at 30 June 163,193 – Cost - At beginning of financial year – – - At end of financial year 189,097 – Accumulated depreciation - At beginning of financial year – – - At end of financial year (25,904) – Carrying value at 30 June 163,193 – The Groups “Right of Use” assets comprises leased office premises in Port Moresby, Papua New Guinea. (d) Non-cash transactions Group 2025 2024 A$ A$ Aggregate cost of plant and equipment acquired 427,384 63,307 Less: Right of Use Asset Lease Capitalised (189,097) – Net cash outflow for purchase of plant and equipment 238,287 63,307 10. Exploration and evaluation expenditure Group 2025 2024 A$ A$ Exploration and evaluation phases, net of impairment 70,552,927 48,384,595 Exploration and Evaluation Assets The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. Movements in exploration and evaluation assets, net of impairment, during the financial year are summarised below: Group 2025 2024 A$ A$ Balance at beginning of financial year 48,384,595 37,405,880 Exploration and evaluation expenditure capitalised during the financial year 22,168,332 10,978,715 Balance at end of financial year 70,552,927 48,384,595 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 54 10. Exploration and evaluation expenditure (continued) Exploration and Evaluation Assets (continued) The Group recognised impairment of capitalised exploration and evaluation expenditure in relation to tenements that the Group has, or intends to, relinquish. Movements in impairment charges are summarised below: Group 2025 2024 A$ A$ Movement of impairment of exploration and evaluation expenditure At beginning and end of financial year 7,295,478 7,295,478 Non-cash transactions Group 2025 2024 A$ A$ Aggregate cost of exploration and evaluation expenditure 22,168,332 10,978,715 Less: Share-based payments (Note 19(b)) (5,839,274) (1,310,458) Add: Change in trade and other payables for additions (710,884) 29,409 Net cash outflow for exploration and evaluation expenditure 15,618,174 9,697,666 11. Subsidiaries a) Investment in subsidiaries Company 2025 2024 A$ A$ Unquoted equity shares at cost Balance at beginning and end of financial year 12,243,898 12,243,898 Less: Impairment allowances (3,064,136) (3,064,136) Net carrying amount 9,179,762 9,179,762 In 2024, management performed an impairment test for the investment in MR Power Generation Pte Ltd as this subsidiary had been incurring losses. An impairment loss of A$3,064,136 was recognised for the year ended 30 June 2024 to write down this subsidiary to its current estimated recoverable amount of A$nil. The recoverable amount of the investment in MR Power Generation Pte Ltd has been determined based on fair value less cost of disposal, following an assessment of the underlying assets and liabilities of that entity and its subsidiaries. The fair value measurement for disclosure purposes is categorised in Level 3 of the fair value hierarchy. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 55 11. Subsidiaries (continued) b) The Group's significant subsidiaries The table below presents the Group’s ownership interests in subsidiaries as at 30 June 2025 and 30 June 2024. Subsidiaries of the Company: Country of incorporation Principal activity Effective ownership interest held by the Group 2025 % 2024 % MR Iron PNG Pte Ltd# Singapore Investment holding 100 100 MR Energy PNG Pte Ltd# Singapore Investment holding 100 100 MR Central Lime PNG Pte Ltd# Singapore Investment holding 100 100 MR Industrials PNG Pte Ltd# Singapore Investment holding 100 100 MR Power Generation Pte Ltd# Singapore Investment holding 100 100 MR Renewables PNG Pte Ltd# Singapore Investment holding 100 100 Ortus Resources Limited^^ Australia Investment holding 100 100 Mayur Iron PNG Limited^^ Papua New Guinea Mineral exploration 100 100 Mayur Energy PNG Ltd^^ Papua New Guinea Coal exploration 100 100 Mayur Industrials PNG Ltd^^ Papua New Guinea Lime and Cement 100 100 Mayur Power Generation PNG Limited^^ Papua New Guinea Power generation 100 100 Waterford Limited^^ Papua New Guinea Coal exploration 100 100 Mayur Renewables PNG Ltd^^ Papua New Guinea Renewable energy 100 100 Mayur Renewables PNG Carbon Trading Company Ltd^^ Papua New Guinea Renewable energy 100 100 MR Renewables PNG Sales Company Pty Ltd^^ Australia Renewable energy 100 100 # Audited by Baker Tilly TFW LLP ^^ Audited by independent overseas member firms of Baker Tilly International for consolidation purposes. 12. Investment in associate Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Cost of investment – 10,686,339 – 10,686,339 Share of post-acquisition results – (6,779,347) – – Allowance for impairment – – – (6,779,347) Carrying amount of the Group’s interest in the associate – 3,906,992 – 3,906,992 Movement of impairment At beginning of financial year – 5,486,705 6,779,347 12,442,926 Derecognition on deemed disposal / reduction of equity interest in associate – (2,186,909) (6,779,347) – Reversal of allowance for impairment – (3,299,796) – (5,663,579) At end of financial year – – – 6,779,347 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 56 12. Investment in associate (continued) On 18 February 2021, the Group acquired a 42.75% ownership interest in Adyton Resources Corporation (“Adyton”) as the consideration of the Group’s disposal of its 100% ownership interest in MR Exploration PNG Pte Ltd and Mayur Exploration PNG Limited. Adyton is incorporated in Canada with its principal place of business at 1 Adelaide Street East, Suite 801 Toronto, Ontario M5C 2V9. The principal activity of Adyton Resources Corporation is mineral exploration for gold and copper in Papua New Guinea. On 19 April 2024, as part of a restructure of the share capital of Adyton Resources Corporation (TSXV:ADY, Adyton), Adyton issued shares resulting in a dilution of the Group’s shareholding to 29.4%. On 22 April 2024, the Group disposed of 10 million shares in Adyton at CAD0.03 per share and received total proceeds of CAD300,000 (approximately A$332,888) and the Group’s shareholding was reduced to 24.56%. Additionally, the Group granted a right to an individual to purchase from the Group up to a maximum of 10,000,000 common shares in the capital of Adyton that are currently owned by the Group at a price of CAD0.10 per share for a period expiring on the date that is thirty -six (36) months from 22 April 2024, the date of the Option Agreement. The outstanding right has been valued using an option pricing model using the following inputs: Grant date 22/4/2024 Exercise price CAD0.10 Term 3 years Grant date share price CAD0.10 Fair value per option as of 30 June 2024 CAD0.11 Fair value per option as of 30 June 2025 CAD0.25 Fair value losses on derivative financial liabilities amounting to A$1,580,278 has been charged to profit or loss for the year (2024: A$1,187,600). As at 30 June 2025, the carrying value of derivative financial liabilities amounted to A$2,767,878 (2024: A$1,187,600). As at 30 June 2024, the Group determined recoverable amount of investment in associate using fair value less cost of disposal method and a reversal of accumulated impairment loss of A$3,299,796 is recognised in profit or loss. During the financial year 2025, Adyton undertook an equity capital raise which the Group did not participate. Consequently, the Group’s shareholding interest in Adyton was reduced to approximately 19.6% upon completion of the capital raise. This was accoun ted for as a deemed disposal in Adyton as the Group loses significant influence. As a result, the Group ceased to apply equity accounting on the retained interest in Adyton and derecognised Adyton as an associate. The retained interest in Adyton is recognised as financial asset measured at fair value through profit or loss (FVTPL) under SFRS(I) 9 as disclosed in Note 13. At the date of deemed disposal, the carrying amount of the Group’s interest in the associate is A$4,201,286 and its fair values is A$11,020,323, and a gain on deemed disposal of A$6,670,762 (Note 4) was recognised in the profit or loss upon remeasurement of the retained investments at fair value. Prior period figures have not been restated, as the change in classification was prospective. The Group did not receive any dividends from Adyton during the financial years ended 30 June 2025 and 2024. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 57 12. Investment in associate (continued) The fair value of investment based on the quoted share price of the associate as at 30 June 2024 is as following and the fair value measurement is categorised in Level 1 of the fair value hierarchy: 2024 Group’s shareholding in Adyton (unit) 50,833,333 Adyton share prices as of end of the year (A$) 0.126 Fair value of investment based on published price quotation (A$) 6,405,000 Summarised financial information in respect of Adyton for the financial year ended 30 June 2024 is set out below. The summarised information below represents amounts in Adyton’s financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), modified for fair value adjustments on acquisition. 2024 A$ Non-current assets Exploration and evaluation expenditure, net of impairment 13,951,334 Property, plant, and equipment 235 Current assets Cash 2,166,554 Other current assets 61,118 Current liabilities Trade and other payables (273,925) Net assets at 30 June 15,905,316 Revenue – Loss for the financial year (441,689) Other comprehensive income Exchange differences on translation to presentation currency for the financial year (231,802) Total comprehensive loss Total comprehensive loss for the financial year (673,491) Financial information in respect of Adyton for the period of 1 July 2024 to the date of deemed disposal is immaterial. Reconciliation of the above summarised financial information to the carrying amount of the interest in Adyton recognised in the consolidated financial statements is as follows: 2024 A$ Net assets of Adyton at 30 June 15,905,316 Group’s share of net assets 24.56% 3,906,992 Less: Allowance for impairment – Carrying amount of the Group’s interest in the associate 3,906,992 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 58 13. Financial assets at fair value through profit or loss Group and Company 2025 2024 A$ A$ Investment in Adyton Resources Corporation 15,945,640 – The fair value of the Group’s interest in Adyton Resources Corporation on 30 June 2025 was A$15,945,640 based on the quoted market price available on the TSX Venture Exchange and a fair value gain of A$4,925,317 was recognised in the profit or loss for the year. The fair value measurement is classified in Level 1 of the fair value hierarchy. The investment is recorded at fair value in the financial statements. 14. Cash and cash equivalents and Other Financial assets (a) Cash and cash equivalents Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Unrestricted bank balances 39,200,071 6,797,342 36,614,945 4,453,405 (b) Other Financial Assets Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Financial asset at amortised cost Term Deposits 30,000,000 – 30,000,000 – Papua New Guinea Treasury Bills 11,139,704 – – – 41,139,704 – 30,000,000 – Term Deposits bear interest of 4.63% to 4.71% per annum and have average maturity of 90 to 183 days. The Papua New Guinea Treasury Bills bear average interest of 4.10% to 8.18% per annum and have maturity dates of 91 to 273 days. 15. Other receivables Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Goods and services tax receivables 1,085,621 571,383 25,739 – Other current receivables - Third parties 1,914,053 333,540 760,882 250,000 - Loan to director associated company 1,000,000 – – – - Subsidiaries – – – 45,471 - Prepaid borrowing costs – 1,649,695 – – - Prepayments 46,000 34,852 46,000 34,852 4,045,674 2,589,470 832,621 330,323 The loan to director associated company of A$1,000,000 was provided by the Group’s subsidiary company incorporated in Papua New Guinea, is secured, non- trade, bears interest of 5% p.a. and is repayable on 31 October 2025. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 59 16. Trade and other payables Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Trade creditors and accruals 5,359,504 3,377,390 1,309,809 1,166,739 17. Borrowings Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Current (a) Loan Facility - November 2023 Drawdown – 9,250,000 – 9,250,000 - Accrued interest – 342,123 – 342,123 - Capitalised borrowing costs – (274,910) – (274,910) (b) Santos Facility – 3,661,952 – 3,661,952 (c) ACAM Convertible Note Facility 8,288,702 – 8,288,702 – (d) Lease Liabilities 65,410 – – – 8,354,112 12,979,165 8,288,702 12,979,165 Non-Current (d) Lease Liabilities 117,916 – – – 117,916 – – – Total Borrowings 8,472,028 – 8,288,702 12,979,165 (a) Loan Facility On 8 November 2023, the Company announced a financing package of A$10 million from a consortium of professional and sophisticated investors, comprising a A$9.25 million covenant -light loan facility (Loan Facility) and a A$0.75 million share placement (Share Placement). The Loan Facility was bearing annual interest rates of 15% (2024: 15%) and was repaid in full on 15 November 2024 (2024: repayable on 15 November 2024) . The Loan Facility was secured by a General Security Deed over the assets and undertakings of the Company (excluding the Company’s renewables business). (b) Santos Facility On 20 June 2022, the Company announced that it had executed an Expression of Interest (“EOI”) with Santos Ventures Pty Ltd (Santos), a subsidiary of Santos Limited (ASX:STO), to jointly develop a portfolio of nature-based carbon offset projects in Papua New Guinea (Carbon Projects). Under the terms of the EOI, the Company agreed to provide Santos with an exclusive period of 180 days (Exclusivity Period) during which Santos and the Company were to negotiate in good faith and if agreed, enter into binding transaction documents (Transaction Documents) to jointly develop Carbon Projects. The Carbon Projects focus on preserving 1.4 million hectares of pristine rainforest in Papua New Guinea through avoided deforestation. Phase 1 development being progressed which includes up to 800,000 hec tares in the Western Province. The EOI included a framework for the future commercialisation of the Carbon Projects contingent on executing Transaction Documents along with remaining confirmatory due diligence. In conjunction with that announcement, Santos provided the Company with a US$3 million facility (at exchange rate on 30 June 2025 - A$4,499,970) on 16 June 2022 to, amongst other things, fund ongoing detailed feasibility and landholder consent work on the Carbon Projects. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 60 17. Borrowings (continued) (b) Santos Facility (continued) The EOI contemplated that Transaction Documents were to be completed by 16 December 2022. On 13 December 2022, the Exclusivity Period was extended to 16 December 2023. In relation to the Expression of Interest (“EOI”) with Santos Ventures Pty Limited (Santos) in respect of the proposal to jointly develop a portfolio of nature-based carbon offset projects in Papua New Guinea (Carbon Projects), as previously disclosed, as the Company was unable to agree definitive transaction documents with Santos, the agreed exclusivity period with Santos has expired and the EOI has terminated, allowing the Company to discuss investment opportunities in the Carbon Projects in an unrestricted manner, including with other parties. Despite not entering into binding transaction documents with Santos, the US$3 million facility provided by Santos to the Company on 16 June 2022 to, amongst other things, fund ongoing detailed feasibility and landholder consent work on the Carbon Projects, remains on foot and the convertible securities issued under that loan facility on 16 June 2022 will convert on the date that is 5 business days after the third anniversary of the execution of the EOI (provided no shareholder approval is required) or such other date as the parties may agree to issue ordinary fully paid shares in the Company based on a 30-day Volume Weighted Average Price (“VWAP”) calculated three years from the date of execution of the EOI (being 20 June 2025). The facility is non- interest bearing and security has been provided over the Mayur Renewables business. The facility was secured over the Group’s Renewables business, by: • A Charge issued via a Security Deed, over all of the shares held by the Company in MR Renewables PNG Pte Ltd (incorporated in Singapore), including any additional future shares that may be issued, and all related rights to those shares (including but not limited to dividends, warrants, options, and the like); • A Charge issued via a Security Deed, over all of the shares held by MR Renewables PNG Pte Ltd (incorporated in Singapore) in Mayur Renewables PNG Limited (incorporated in Papua New Guinea), including any additional future shares that may be issued, and all related rights to those shares (including but not limited to dividends, warrants, options, and the like); and • A Charge issued via a Security Deed, over all of the assets and undertakings, future and present, in Mayur Renewables PNG Limited (incorporated in Papua New Guinea). The Santos Facility was converted into fully paid shares in the Company during the financial year end 30 June 2025 and the charge was discharged. (c) ACAM Convertible Notes On 15 October 2024, the Company announced that ACAM LP and other investors (collectively, Investors) had entered into definitive transaction documents (Notes Documentation) with the Company to subscribe for US$10 million (approximately A$14,936,554) of Convertible Notes (Notes). Pursuant to the Notes Documentation, it was further intended that, subject to conditions precedent, the Investors will provide an additional US$40 million of equity funding to the Company and its Central Lime Project (CLP) in Papua New Guinea (PNG). For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 61 17. Borrowings (continued) (c) ACAM Convertible Notes (continued) US$10 Million Notes Financing • The Notes are unsecured obligations of the Company and have a maturity date of 31 October 2026. • The Notes bear interest at a rate of 10% per annum, payable quarterly in arrears. Interest can be capitalised at the option of the Company for the term of the Notes. • The Notes and any accrued and unpaid interest can be converted by the Investor into the Company’s common shares at a fixed conversion rate of A$0.2425 per share, unless redeemed by the Company. • The Company retains the right to redeem the Notes at any time prior to maturity at 110% of face value, after providing the Investor a redemption notice and the Investor within 20 days electing not to exercise their conversion right. • If the Notes are not converted on or before the maturity date, the Company must redeem all outstanding Notes at an amount in cash equal to 110% of the aggregate principal amount, plus any accrued but unpaid interest. The fair value of the facility has been assessed at the date of entry into the facility, and as at 30 June 2025, based on the valuation of the components of the instrument, being an embedded derivative liability relating to the conversion feature of the fa cility, embedded derivative liability relating to the foreign currency feature of the facility at fair value (funds advanced in United States Dollars but convertible into issued shares based in Australian Dollars), and the host debt being measured at amortised cost. The Notes bear interest at a rate of 10% per annum, payable quarterly in arrears. Interest can be capitalised at the option of the Company for the term of the Notes. Group and Company A$ Fair value of the ACAM Convertible Notes at initial recognition 14,936,554 Embedded derivative – foreign currency component (1,369,663) Embedded derivative – conversion component (13,119,364) Host debt at initial recognition 447,527 The following is the movement of components of ACAM Convertible Note Facility: Host debt, at amortised cost A$ Foreign currency derivative, at fair value A$ Conversion derivative, at fair value A$ Total A$ At initial recognition 447,527 1,369,663 13,119,364 14,936,554 Fair value changes – (171,962) (7,649,014) (7,820,976) Interest expense 1,173,124 – – 1,173,124 At 30 June 2025 1,620,651 1,197,701 5,470,350 8,288,702 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 62 17. Borrowings (continued) (d) Lease Liabilities Nature of the Group’s leasing activities The Groups leasing activities comprises office lease space in Port Moresby, Papua New Guinea. The maturity analysis of the lease liability is disclosed in Note 22(l). Information about leases for which the Group is a lessee is presented below: Amount recognised in Consolidated Statement of Financial Position Group 2025 2024 A$ A$ Carrying amount of right-of-use assets Classified within property, plant and equipment Office lease space 163,193 – Carrying amount of lease liabilities Current 65,410 – Non-current 117,916 – 183,326 – For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 63 17. Borrowings (continued) Reconciliation of movements of liabilities to cash flows arising from financing activities: Loan Facility Santos Facility Convertible Notes Lease Liabilities Total A$ A$ A$ A$ A$ Note 17(a) Note 17(b) Note 17(c) Note 17(d) Balance at 1 July 2023 – – 2,789,264 – 2,789,264 Changes from financing cash flows: - Proceeds from borrowings 9,250,000 – – – 9,250,000 - Repayment of convertible notes – – (3,231,211) – (3,231,211) - Interest paid for borrowings (543,595) – – – (543,595) Non-cash changes: - Capitalised borrowing costs (824,730) – – – (824,730) - Amortisation of capitalized borrowing costs 549,820 – – – 549,820 - Reclassified from other payable – 4,515,930 – – 4,515,930 - Gain on extinguishment of liability – (1,249,246) – – (1,249,246) - Interest expenses on borrowings 885,718 435,335 – – 1,321,053 - Change in fair value of convertible notes – – 438,351 – 438,351 - Unrealised gain on foreign exchange – (40,067) – – (40,067) - Realised loss on foreign exchange – – 3,596 – 3,596 Balance at 30 June 2024 9,317,213 3,661,952 – – 12,979,165 Changes from financing cash flows: - Proceeds from convertible notes – – 14,936,554 – 14,936,554 - Interest paid (843,904) – – (7,597) (851,501) - Repayment (9,250,000) – – (5,771) (9,255,771) Non-cash changes: - Amortisation of capitalized borrowing costs 274,910 – – – 274,910 - New leases – – – 189,097 189,097 - Interest expense on host debt – – 1,173,124 – 1,173,124 - Fair value changes on embedded derivatives – – (7,820,976) – (7,820,976) - Interest expense on borrowings 501,781 916,350 – 7,597 1,425,728 - Unrealised gain on foreign exchange – 54,903 – – 54,903 - Extinguishment by share issue – (4,633,205) – – (4,633,205) Balance at 30 June 2025 – – 8,288,702 183,326 8,472,028 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 64 18. Share capital Group and Company 2025 2024 A$ A$ Issued and fully paid-up capital Share capital 179,247,476 79,992,656 Movements in ordinary shares on issue in the year to 30 June were: 2025 2024 Number A$ Number A$ At beginning of financial year 395,960,011 79,992,656 316,834,266 67,576,577 Issuance of shares pursuant to capital raising 362,751,795 100,290,500 62,750,000 12,550,000 Issuance of shares in lieu of remuneration – – 543,905 100,000 Issuance of shares on exercise of unlisted options 6,200,000 950,000 – – Cost of issuing shares – (6,667,385) – (977,034) Shares issued on the exercise of options and performance rights 52,275,739 – 9,737,384 – Issuance of shares as payment for services received 200,000 48,500 4,394,456 743,113 Issuance of loan funded shares to executives 800,000 – 1,700,000 – Issuance of Shares to Santos on conversion of convertible facility 18,995,910 4,633,205 – – At end of financial year 837,183,455 179,247,476 395,960,011 79,992,656 Ordinary shares, which have no par value, carry one vote per share and carry a right to dividends as and when declared by the Company. Reconciliation of proceeds from share issue and costs of issuing shares to cash flow from financing activities Group 2025 2024 A$ A$ Issuance of shares pursuant to capital raising 105,922,205 13,393,113 Less: Issue of shares for capital raising services – (610,200) Less: Issue of shares for other services (48,500) (743,113) Less :Issue of shares on conversion of loan facility (4,633,205) – Less: Non-cash shares in lieu of remuneration (Note 19(b)) – (100,000) Proceeds received from share issue in the consolidated statement of cash flows 101,240,500 11,939,800 Cost of issuing shares (6,667,388) (977,034) Share based payments in connection with capital raising (Note 19(b)) 87,048 367,997 Costs paid through issuance of shares (net of GST) – 550,200 Cost of issuing shares incurred in the consolidated statement of cash flows (6,580,340) (58,837) For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 65 18. Share capital (continued) Options issued During the financial year ended 30 June 2025, the Company granted NIL unlisted options. During the financial year ended 30 June 2024, the Company granted the following unlisted options: • On 19 September 2023, the Company issued an additional 625,000 unlisted options to Obsidian Global Partners, LLC (Noteholder), being the holder of the convertible notes that the Company had on issue, in accordance with the terms and conditions of the agreement under which the convertible notes were issued (Convertible Note Agreement), being that 625,000 unlisted options were required to be issued. The unlisted options have an exercise price of $0.40, an expiry date of 19 September 2026 (being three years from the date of their issue), and are each exercisable into one Share; • On 8 November 2023, the Company announced a financing package of $10 million from a consortium of professional and sophisticated investors, comprising the Loan Facility, being a $9.25 million covenant- light loan facility and a $0.75 million share placement. Under the terms of the Loan Facility, the Company also agreed to issue attaching unlisted options to the lenders, with one unlisted option being issued for every $2 provided under the Loan Facility, with each unlisted option being exercisable at $0.25 and expiring on 15 November 2025 (Loan Options). A total of 4,625,000 Listed Options were issued. • On 8 November 2023, the Company announced a financing package of $10 million from a consortium of professional and sophisticated investors, comprising the Loan Facility, being a $9.25 million covenant- light loan facility and the Share Placement, being a $0.75 million placement of CDIs by the Company. On 10 November 2023, the Company issued a total of 3,750,000 CDIs in the Company under a placement at an issue price of $0.20 per CDI, and 375,000 unlisted options (Placement Options), to raise a total of $750,000. The Placement Options i ssued under the Share Placement were issued to QM Financial Services Pty Ltd and its related entities, being sophisticated and professional investors with each unlisted option being exercisable at $0.25 and expiring on 15 November 2025. • On 10 November 2023, the Company executed an amendment to an existing Mandate Agreement with Reign Advisory Pty Ltd (Reign) (original mandate dated 1 November 2022, amended 8 May 2023) (Mandate Agreement Amendment). The Mandate Agreement Amendment was ex ecuted in connection with additional corporate and professional advisory services provided to the Company by Reign in connection with the financing of $10 million completed by the Company and as announced to ASX on 8 November 2023 the subject of Resolution 11. In connection with the Mandate Agreement Amendment, Reign was issued with 3,000,000 unlisted options in the Company with an exercise price of $0.25 per unlisted option, and a 2 year term from the date of issuance (Reign Options). • On 15 March 2024 and 18 March 2024, the Company announced a Share Placement, under which the Company issued 50,000,000 CDIs at an issue price of $0.20 per Share to raise $AUD 10 million. Participants in the Share Placement also received one (1) free unlisted attaching option for every two (2) CDIs allocated under the Share Placement (Attaching Options). The Attaching Options are exercisable at A$0.25 per Attaching Option and will expire 24 months from 22 March 2023 (being the date of issue of the Attaching Options). On 22 March 2024, the Company issued a total of 25,000,000 Attaching Options in the Company. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 66 18. Share capital (continued) Options issued (continued) The following tables illustrate the number and movements in share options issued during the previous financial year and that remain on issue at 30 June 2025: Tribeca Options Advisor Options 2025 2024 2025 2024 On issue at beginning of the year 10,000,000 10,000,000 1,200,000 1,200,000 Options issued – – – – Options exercised – – – – Options lapsed (10,000,000) – (1,200,000) – On issue at end of the year – 10,000,000 – 1,200,000 Weighted average exercise price of options – A$0.13647 – A$0.0506 Weighted average share price on the date options exercised – Nil exercised – Nil exercised Landsdowne Options Reign Options Reign Options 2025 2024 2025 2024 2025 2024 On issue at beginning of the year 6,000,000 6,000,000 3,000,000 3,000,000 2,000,000 2,000,000 Options issued – – – – – – Options exercised (6,000,000) – – – – – Options lapsed – – - – – – On issue at end of the year – 6,000,000 3,000,000 3,000,000 2,000,000 2,000,000 Weighted average exercise price of options A$0.07 A$0.07 A$0.04 A$0.04 A$0.10 A$0.10 Weighted average share price on the date options exercised A$0.35 Nil exercised Nil exercised Nil exercised Nil exercised Nil exercised The options do not have any voting rights, any entitlement to dividends or any entitlement to the proceeds on liquidation in the event of a winding up. 19. Reserves Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Capital reserve (a) (6,545,316) (6,545,316) – – Share of foreign currency translation reserve of an associate – (366,720) – – Share based payments reserve (b) 30,818,022 20,181,006 30,818,022 20,181,006 Equity component of convertible notes, net of tax – 53,030 – 53,030 24,272,706 13,322,000 30,818,022 20,234,036 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 67 19. Reserves (continued) (a) Capital reserve Group 2025 2024 A$ A$ Balance at the beginning and end of the financial year (6,545,316) (6,545,316) The capital reserve represents the difference between the non-controlling interest acquired and the fair value of shares issued by the Company to acquire those interests in certain subsidiaries. (b) Share based payments reserve The share- based payments reserve is used to record the fair value of shares or options issued to employees/contractors and other service providers. Group and Company 2025 2024 A$ A$ Balance at 1 July 20,181,006 16,640,647 Share based payments made during the year (i) 10,583,986 3,640,359 Reclassification of equity component of convertible notes 53,030 – Capitalised as share capital (Note 18) – (100,000) Balance at 30 June 30,818,022 20,181,006 The share based payments made during the year were accounted for as follows: Group and Company 2025 2024 A$ A$ Capitalised borrowing costs – 593,480 Recognised as borrowing costs in the Consolidated Statement of Profit or Loss and Other Comprehensive Income – 54,985 Recognised as share-based payments expense in the Consolidated Statement of Profit or Loss and Other Comprehensive Income 4,657,664 1,313,439 Recognised as capital raising expenses in issued capital (Note 18) 87,048 367,997 Capitalised as exploration and evaluation expenditure (Note 10) 5,839,274 1,310,458 10,583,986 3,640,359 (i) Share based payments made during the year The following share–based payment transactions were recognised during the year: 2025 Number issued A$ Loan funded shares (iii) 800,000 28,815 Long term incentive rights subject to vesting conditions (iv) 63,025,000 8,311,303 Amounts recognised in relation to share based payments issued in the current year 8,340,118 Amounts recognised in the current year in relation to share based payments issued in previous financial years 2,243,868 10,583,986 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 68 19. Reserves (continued) (b) Share based payments reserve (continued) (i) Share based payments made during the year (continued) The following share–based payment transactions were recognised during the year (continued): 2024 Number issued A$ Obsidian options (convertible note facility) (v) 625,000 54,985 Vested performance rights awarded to employees as salary (Salary Sacrifice Rights) (ii) 1,205,612 184,250 Loan funded shares (iii) 1,700,000 325,788 Loan funding options (vi) 4,625,000 593,480 Shares issued in lieu of cash remuneration 543,905 100,000 Reign options (viii) 3,000,000 267,810 Long term incentive rights subject to vesting conditions (iv) 41,000,000 2,079,719 Amounts recognised in relation to share based payments issued in the current year 3,606,032 Amounts recognised in the current year in relation to share based payments issued in previous financial years 34,327 3,640,359 (ii) Salary sacrifice rights Salary sacrifice rights are granted to employees and contractors to receive shares in respect of a portion of their agreed remuneration. Each salary sacrifice right will entitle the holder to receive one share. The salary sacrifice rights vest annually over four equal instalments and can be exercised for no consideration at any time after vesting but prior to the expiry date of the rights. The number of salary sacrifice rights to be issued at each grant date is determined by dividing the salary amount to be paid in the form of salary sacrifice rights divided by the prevailing share price (rounded down to the nearest whole number). Any new employees/contractors or employees/contractors that have not worked on behalf of the Company for a minimum of 12 months shall be restricted in exercising their salary sacrifice rights until such time they have worked for and/or on behalf of the Company for a year of 12 months. During the financial year, NIL salary sacrifice rights were issued in respect of remuneration totalling A$NIL (2024: 1,205,612 salary sacrifice rights were issued in respect of remuneration totalling A$184,250) (iii) Loan funded shares During the financial year, the Company granted loan funded shares to the value of A$178,968 (2024: A$325,788) to eligible employees selected by the Board. Pursuant to the terms of the Employee Incentive Plan, employees are granted an interest free limited recourse loan to assist in the purchase of Shares, with the Shares acquired at their market value. The loan w ill be limited recourse so that at any time the employee may divest their Shares in full satisfaction of the loan balance. In accordance with the requirements of applicable SFRS(I) the loan funded shares are to be accounted for as an option granted to the employee with an exercise price equal to the market price of the Company’s shares at the grant date. Consequently, the loan funded shares have been valued using an option pricing model using the following inputs: Grant date 09/09/2024 Exercise price A$0.28 Term 5 years Grant date share price A$0.28 Fair value per option A$0.22371 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 69 19. Reserves (continued) (b) Share based payments reserve (continued) (iv) Long term incentive rights subject to vesting conditions Performance rights are also offered as part of a Long –Term Incentive Plan to employees, executive and non–executive directors, contractors, and consultants, to acquire shares in the Company. The rights will vest subject to the relevant performance measures being met and the participant remaining employed. Unless otherwise noted, the milestones/performance conditions attached to the long–term incentive rights are non– market–based conditions. Non– market conditions are considered by adjusting the number of rights included in the measurement of the transaction am ount using a probability of vesting assumption so that, ultimately, the amount recognised shall be based on the number of rights that eventually vest. During the financial year, 63,025,000 long term incentive performance rights were issued (2024: 42,849,375 long term incentive performance rights were issued). (v) Obsidian Options On 19 September 2023, the Company issued an additional 625,000 unlisted options to Obsidian Global Partners, LLC (Noteholder), being the holder of the convertible notes that the Company had on issue, in accordance with the terms and conditions of the agreement under which the convertible notes were issued (Convertible Note Agreement), being that 625,000 unlisted options were required to be issued. The unlisted options have an exercise price of $0.40, an expiry date of 19 September 2026 (being three years from the date of their issue), and are each exercisable into one Share; (vi) Loan Funding options On 8 November 2023, the Company announced a financing package of $10 million from a consortium of professional and sophisticated investors, comprising the Loan Facility, being a $9.25 million covenant –light loan facility and a $0.75 million share placement. Under the terms of the Loan Facility, the Company also agreed to issue attaching unlisted options to the lenders, with one unlisted option being issued for every $2 provided under the Loan Facility, with each unlisted option being exercisable at $0.25 and expiring on 15 November 2025 (Loan Options). A total of 4,625,000 Listed Options were issued. (vii) Equity Funding Options On 8 November 2023, the Company announced a financing package of $10 million from a consortium of professional and sophisticated investors, comprising the Loan Facility, being a $9.25 million covenant–light loan facility and the Share Placement, being a $0.75 million placement of CDIs by the Company. On 10 November 2023, the Company issued a total of 3,750,000 CDIs in the Company under a placement at an issue price of $0.20 per CDI, and 375,000 unliste d options (Placement Options), to raise a total of $750,000. The Placement Options iss ued under the Share Placement were issued to QM Financial Services Pty Ltd and its related entities, being sophisticated and professional investors with each unlisted option being exercisable at $0.25 and expiring on 15 November 2025. (viii)Reign options On 10 November 2023, the Company executed an amendment to an existing Mandate Agreement with Reign Advisory Pty Ltd (Reign) (original mandate dated 1 November 2022, amended 8 May 2023) (Mandate Agreement Amendment). The Mandate Agreement Amendment was executed in connection with additional corporate and professional advisory services provided to the Company by Reign in connection with the financing of $10 million completed by the Company and as announced to ASX on 8 November 2023 the subject of Resolution 11. In connection with the Mandate Agreement Amendment, Reign was issued with 3,000,000 unlisted options in the Company with an exercise price of $0.25 per unlisted option, and a 2 year term from the date of issuance (Reign Options). For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 70 19. Reserves (continued) (b) Share based payments reserve (continued) (ix) Placement options On 15 March 2024 and 18 March 2024, the Company announced a Share Placement, under which the Company issued 50,000,000 CDIs at an issue price of $0.20 per Share to raise $AUD 10 million. Participants in the Share Placement also received one (1) free unlisted attaching option for every two (2) CDIs allocated under the Share Placement (Attaching Options). The Attaching Options are exercisable at A$0.25 per Attaching Option and will expire 24 months from 22 March 2023 (being the date of issue of the Attaching Options). On 22 March 2024, the Company issued a total of 25,000,000 Attaching Options in the Company. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 71 19. Reserves (continued) The following tables are disclosures in relation to the financial year ended 30 June 2025: At the Annual General Meeting of the Company held on 18 December 202 4, the following Long Term Incentive Performance Rights were approved by Shareholders for issue to Directors. All LTI Rights have an expiry date of five years from the grant date : Milestone / Performance Condition Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period from the date of the 2024 Annual General Meeting of the Company on 18 December 2024, the share price performance of the Company is achieved at the limit of (or greater than) AUD$0.375 per share based upon a 30 trading day volume weighted average price (VWAP) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive 23,500,000 100% 31/12/2025 $0.22 51% The earlier of market capitalisation of the Company reaching or exceeding a total amount of $AUD 150 million or greater, for a period of 45 consecutive days or continued employment for 24 months. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 20,000,000 100% 31/12/2025 $0.31 100% Milestone of the Company raising $AUD 70 million in equity for CLP project equity requirements and for corporate and working capital purposes on terms that are acceptable to the Company. If raise between $AUD 50 million and $AUD 70 million, then the 10 million LTIPR are pro–rated down. If raise less than $AUD 50 million, NIL grant or entitlement There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 10,000,000 100% 31/12/2025 $0.31 100% On 20 December 2024, the Company issued a number of Long Term Incentive Performance Rights to executive and other staff members. All LTI Rights, if vested, have an expiry date of five years from the grant date: Milestone / Performance Condition Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period from the date of issue, the share price performance of the Company is achieved at the limit of (or greater than) AUD$0.375 per share base d upon a 30 trading day volume weighted average price (VWAP) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive 8,775,000 100 31/12/2025 $0.22 51% For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 72 19. Reserves (continued) During the financial year under review the Company issued a number of Long Term Incentive Performance Rights to an executive upo n commencement of employment. All LTI Rights, if vested, have an expiry date of five years from the grant date : Milestone / Performance Condition Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Grant of 750,000 Long Term Incentive Performance Rights that shall vest if within a 24 month period from the date of commencement of employment, the share price performance of the Company is achieved (for a period of 45 trading days) at the limit of (or greater than) 150% of the 60 trading day VWAP for the Company’s shares during the 60 day period immediately prior to your commencement date, with a floor price of $0.35. There is no strike price payable upon the exercise of the Long Term Incentive 750,000 100 31/12/2025 $0.22 40% In December 2024, the following Long Term Incentive Performance Rights previously issued to Executives and staff were cancelled due to vesting conditions not having been met: Construction and development activities commencing on the Orokolo Bay Industrial Sands Project 1,033,000 Commercial operational activities commencing on the Orokolo Bay Industrial Sands Project 1,033,000 2,066,000 The following tables are disclosures in relation to the financial year ended 30 June 2024 : In December 2023, the following Long Term Incentive Performance Rights previously issued to Directors were cancelled due to v esting conditions not having been met: Milestone / Performance Condition Number Granted Construction and development activities commencing on the Orokolo Bay Industrial Sands Project 2,900,000 Construction and development activities commencing on the Central Cement and Lime Project 2,900,000 Long Term Incentive Performance Rights in the Company will be provided, that shall vest if within a period from the date of t he Annual General Meeting of the Company on 15 December 2022, the share price performance of the Company is achieved at the limi t of (or greater than) AU$0.30 per share based upon a 60 trading day volume weighted average price ( “VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 13,200,000 Total 19,000,000 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 73 19. Reserves (continued) At the Annual General Meeting of the Company held on 22 December 2023, the following Long Term Incentive Performance Rights were approved by Shareholders for issue to Directors. All LTI Rights have an expiry date of five years from the grant date : Milestone / Performance Condition Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period from the date of the Annual General Meeting of the Company on 22 December 2023, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 45 trading day volume weighted average price (“VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 17,250,000 100% 31/12/2024 $0.13 51% Long Term Incentive Performance Rights in the Company will be provided, that shall vest if (a) within the period from the date of the Annual General Meeting of the Company on 22 December 2023 and 31 December 2024, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 45 trading day volume weighted average price (VWAP) of the Company share price; and (b) Mr Pegum must also remain as a Director of the Company for not less than a period of 3 ye ars from the date of his appointment. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 3,333,000 100% 31/12/2026 $0.13 17% Long Term Incentive Performance Rights in the Company will be provided, that shall vest if (a) within the period from the date of the Annual General Meeting of the Company on 22 December 2023 and 31 December 2025, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.40 per share based upon a 45 trading day volume weighted average price (“VWAP”) of the Company share price; and (b) Mr Pegum must also remain as a Director of the Company for not less than a period of 3 years from the date of his appointment. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 3,333,000 100% 31/12/2026 $0.11 17% Long Term Incentive Performance Rights in the Company will be provided, that shall vest if (a) within the period from the date of the Annual General Meeting of the Company on 22 December 2023 and 31 December 2025, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.50 per share based upon a 45 trading day volume weighted average price (“VWAP”) of the Company share price. (b) Mr Pegum must also remain as a Director of the Company for not less than a period of 3 years from the date of his appointment. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 3,334,000 100% 31/12/2026 $0.09 17% Total 27,250,000 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 74 19. Reserves (continued) The following tables are disclosures in relation to the financial year ended 30 June 2024 (continued): In December 2023, the following Long Term Incentive Performance Rights previously issued to Executives and staff were cancelled due to vesting conditions not having been met: Long Term Incentive Performance Rights in the Company will be provided, that shall vest if within a period from the date of t he Annual General Meeting of the Company on 15 December 2022, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 60 trading day volume weighted average price ( “VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 7,200,000 Construction and development activities commencing on the Orokolo Bay Industrial Sands Project 1,550,000 All tenements and licences in good standing 300,000 Other 1,000,000 10,050,000 On 22 December 2023, the Company issued a number of Long Term Incentive Performance Rights to executive and other staff members. All LTI Rights, if vested, have an expiry date of five years from the grant date: Milestone / Performance Condition Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 45 trading day v olume weighted average price (“VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 8,784,000 100% 31/12/2024 $0.13 51% Construction and development activities commencing on the Orokolo Bay Industrial Sands Project 1,033,000 0% 30/04/2024 $0.20 100% Commercial operational activities commencing on the Orokolo Bay Industrial Sands Project 1,033,000 25% 31/12/2024 $0.20 51% Total 10,850,000 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 75 19. Reserves (continued) During the financial year ended 30 June 2024, the Company issued a number of Long Term Incentive Performance Rights to executive and other staff members. All LTI Rights, if vested, have an expiry date of five years from the grant date : Milestone / Performance Condition Issue Date (approx.) Number Granted Vesting Probability Vesting Date Value Per LTI % Recognised Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 45 trading day volume weighted average price (“VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 12/01/2024 2,250,000 100% 31/12/2024 $0.13 51% Long Term Incentive Performance Rights in the Company will be provided, that shall vest if, within the relevant period, the share price performance of the Company is achieved at the limit of (or greater than) AU$0.30 per share based upon a 45 trading day volume weighted average price (“VWAP”) of the Company share price. There is no strike price payable upon the exercise of the Long Term Incentive Performance Rights. 14/06/2024 500,000 100% 30/04/2025 $0.13 51% Total 2,750,000 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 76 20. Capital commitments To maintain current rights of tenure to exploration tenements, including tenements that had expired and were the subject of renewal applications by the Group as at 30 June 2025, the Group is required to perform exploration work to meet minimum expenditure requirements as specified by the Papua New Guinea Mineral Resources Authority. The following table sets out the minimum expenditure commitments: Group 2025 2024 A$ A$ Payable: – not later than one year 478,764 823,079 – later than one year and not later than five years 207,349 392,726 686,113 1,215,805 Other capital commitments in relation to construction of Central Lime Project: Group 2025 2024 A$ A$ Payable: – not later than one year 269,954 – 21. Receivables from subsidiaries Company 2025 2024 A$ A$ Receivables from subsidiaries 68,811,004 30,259,431 Less: Allowance for credit loss (Note 22(k)) (10,070,580) (6,745,612) Net receivables from subsidiaries 58,740,424 23,513,819 Receivables from subsidiaries are non–trade in nature, unsecured, repayable on demand and are non–interest bearing. Company 2025 2024 A$ A$ Balance at 1 July 23,513,819 11,355,897 Advances to subsidiaries 32,741,194 13,769,239 Share based payments 5,839,274 1,310,458 Allowance for credit loss (3,353,863) (2,921,775) Balance at 30 June 58,740,424 23,513,819 22. Financial risk management The Group’s principal financial instruments comprise cash and cash equivalents, receivables and trade and other payables. The Group does not currently have any projects in production and as such the main purpose of these financial instruments is to provide liquidity to finance the Group’s development and exploration activities. It is, and has been throughout the financial year, the Group’s policy that no trading in speculative financial instruments shall be undertaken. The main risks arising from the Group’ s use of financial instruments are foreign currency risk, interest rate risk, credit risk and liquidity risk. During the financial year, the Group has had some transactional currency exposures, principally to the Papua New Guinea Kina (“PGK”). The Group ha s not entered into forward currency contracts to hedge these exposures due to the short time frame associated with the currency exposure and the relatively modest overall exposure at any one point in time. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 77 22. Financial risk management (continued) Details of the material accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in Note 2 . Primary responsibility for identification and control of financial risk rests with the Board of Directors. However, the day– to–day management of these risks is under the control of the Managing Director. The Board agrees the strategy for managing future cash flow requirements and projections. a) Categories of financial instruments The carrying values of the Group’s and the Company’s financial instruments at the balance sheet date are as follows: Group Company 2025 2024 2025 2024 A$ A$ A$ A$ Financial assets At amortised cost 83,253,828 7,130,882 126,116,251 28,262,695 Fair value through profit or loss 15,945,640 – 15,945,640 – Financial liabilities At amortised cost 7,098,071 16,257,272 2,930,460 14,046,622 Derivative financial instruments 9,435,929 1,187,600 9,435,929 1,187,600 b) Foreign currency risk The Group is exposed to foreign currency risk mainly arising from various currency exposures, including United States Dollars (“USD”), and Papua New Guinea Kina (“PGK”). The Group’s policy is to convert its local currency to the foreign currency at the time of the transaction. Foreign currency risk arises from future commercial transactions. The Group manages foreign currency risk on an as –needs basis. The risk is measured using sensitivity analysis and cash –flow forecasting. The Group’s exposure to foreign currency risk, expressed in Australian dollars at the reporting date, was as follows: PGK 2025 2024 A$ A$ Financial assets Cash and cash equivalents 2,584,121 2,342,933 Other financial assets 11,139,704 – Net currencies exposure 13,723,825 2,342,933 USD 2025 2024 A$ A$ Financial liabilities ACAM Convertible Note Facility 8,288,702 – Net currencies exposure 8,288,702 – For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 78 22. Financial risk management (continued) b) Foreign currency risk The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. A positive number in the table represents a decrease in the operating loss after tax and increase equity where the Australian dollar strengthens against the relevant currency. For a 10% weakening of the Australian dollar against the relevant currency, there would be a comparable impact on the loss or equity, and the balances below would be negative. PGK 2025 2024 A$ A$ Profit after tax and equity – 10% increase 1,372,382 234,293 – 10% decrease (1,372,382) (234,293) USD 2025 2024 A$ A$ Profit after tax and equity – 10% increase (828,870) – – 10% decrease 828,870 – Profit after tax higher/(lower) Equity higher/(lower) 2025 2024 2025 2024 A$ A$ A$ A$ PGK increased by 10% 1,372,382 234,293 1,372,382 234,293 PGK decreased by 10% (1,372,382) (234,293) (1,372,382) (234,293) Profit after tax higher/(lower) Equity higher/(lower) 2025 2024 2025 2024 A$ A$ A$ A$ USD increased by 10% (828,870) – (828,870) – USD decreased by 10% 828,870 – 828,870 – c) Interest rate risk The Group’s exposure to interest rate risk arises predominantly from cash and cash equivalents bearing variable interest rates. At the end of the reporting period, the Group maintained the following variable rate accounts: 30 June 2025 30 June 2024 Weighted average interest rate Balance Weighted average interest rate Balance % A$ % A$ Cash and cash equivalents 5.00 39,200,071 2.50 6,797,342 At the end of the reporting period, if the interest rates had changed, as illustrated in the table below, with all other variables remaining constant, after–tax loss and equity would have been affected as follows: After–tax loss (higher)/lower Equity higher/(lower) 2025 2024 2025 2024 A$ A$ A$ A$ 2025 +0.5% (50bp)/ (2024:+0.5% (50bp)) 196,000 41,416 196,000 41,416 2025 –0.5% (50bp)/ (2024: –0.5% (50bp)) (196,000) (41,416) (196,000) (41,416) For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 79 22. Financial risk management (continued) d) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral whe re appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored. Concentration of credit risk exists when changes in economic, industry or geographical factors similarly affect group of counterparties whose aggregate exposure is significant in relation to the Group’s total credit exposure. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased. The following sets out the Group’s internal credit evaluation practices and basis for recognition and measurement of expected credit losses (“ECL”): Description of evaluation of financial assets Basis for recognition and measurement of ECL Counterparty has a low risk of default and does not have any past due amounts 12–month ECL There has been a significant increase in credit risk since initial recognition Lifetime ECL – not credit–impaired There is evidence of credit impairment Lifetime ECL – credit–impaired There is evidence indicating that the Company has no reasonable expectation of recovery of payments such as when the debtor has been placed under liquidation or has entered into bankruptcy proceedings Write–off e) Significant increase in credit risk In assessing whether the credit risk on a financial asset has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward– looking information, such as future economic and industry outlook, that is available without undue cost or effort. The risk that the borrower will default on a demand loan depends on whether the borrower: (i) has sufficient cash or other liquid assets to repay the loan immediately; or (ii) does not have sufficient cash or other liquid assets to repay the loan immediately. The Group performs this assessment qualitatively by reference to the borrower’s immediate cash flow and liquid asset position. Relying on the 30 days past due rebuttable presumption is not considered an appropriate indicator given the lack of contractual payment obligations. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increases in credit risk before the amount becomes past due. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 80 22. Financial risk management (continued) e) Significant increase in credit risk (continued) The Group also assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the end of the reporting period. A financial instrument is deter mined to have low credit risk; the borrower has a strong capacity to meet its contractual cash flow obligations in the near term; and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. f) Definition of default The Group considers the following as constituting an event of default for internal credit risk management purposes. Where information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, includi ng the Group, in full (without taking into account any collateral held by the Group). This is assessed based on a number of factors including key liquidity and solvency ratios. Relying on the 90 days past due rebuttable presumption is not considered an appropriate indicator given the lack of contractual payment obligations due throughout the life of the loan. g) Credit-impaired financial assets A financial asset is credit –impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred such as evidence that the borrower is in significant financial difficulty, there is a breach of contract such as defaul t or past due event; there is information that it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; the disappearance of an active market for that financial asset because of financial difficulties; or the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. h) Estimation techniques and significant assumptions There has been no change in the estimation techniques or significant assumptions made during the current financial year for recognition and measurement of credit loss allowances. i) Maximum exposure and concentration of credit risk The Group and the Company did not have concentration of credit risk at 30 June 2025 and 30 June 2024, except for receivables from subsidiaries of the Company. As the Group and the Company do not hold any collateral, the maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented on the balance sheet. The credit loss for cash and cash equivalents and other receivables are immaterial as at 30 June 2025 and 30 June 2024. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 81 22. Financial risk management (continued) j) Other financial assets at amortised cost Other financial assets at amortised costs include other receivables, other current assets (excluding goods and services tax receivables) and cash and cash equivalents. The table below details the credit quality of the Group’s and the Company’s financial assets: 30 June 2025 12–month or lifetime ECL Gross carrying amount A$ Loss allowance A$ Net carrying amount A$ Group Other receivables 12–month ECL 2,914,053 – 2,914,053 Cash and cash equivalents N.A. Exposure Limited 12-month ECL 36,616,950 2,584,121 – – 36,615,950 2,584,121 Other financial assets N.A. Exposure Limited 12-month ECL 30,000,000 11,139,704 – – 30,000,000 11,139,704 Company Other receivables 12–month ECL 760,882 – 760,882 Receivables from subsidiaries Lifetime 68,811,004 (10,070,580) 58,740,424 Cash and cash equivalents N.A. Exposure Limited 36,614,945 – 36,614,945 Other financial assets N.A. Exposure Limited 30,000,000 – 30,000,000 30 June 2024 12–month or lifetime ECL Gross carrying amount A$ Loss allowance A$ Net carrying amount A$ Group Other receivables N.A. Exposure Limited 333,540 – 333,540 Cash and cash equivalents N.A. Exposure Limited 12-month ECL 4,454,409 2,342,933 – – 4,454,409 2,342,933 Company Other receivables N.A. Exposure Limited 295,471 – 295,471 Receivables from subsidiaries Lifetime 30,259,431 (6,745,612) 23,513,819 Cash and cash equivalents N.A. Exposure Limited 4,453,405 – 4,453,405 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 82 22. Financial risk management (continued) k) Movements in credit loss allowance There are no movements in the allowance for impairment of financial assets under SFRS (I) 9 during the financial year for the Group and Company except for the following. Receivables from subsidiaries 2025 A$ 2024 A$ Company Balance at 1 July 6,745,612 3,823,837 Loss allowance measured: Lifetime ECL: - Credit impaired, net 3,324,968 2,921,775 Balance at 30 June (Note 21) 10,070,580 6,745,612 l) Liquidity risk The ability of Group to operate as a going concern and meet its obligations as and when they fall due is principally dependent upon the ongoing support from its shareholders, the ability of the Group to successfully raise capital as and when necessary and the ability to complete successful exploration and subsequent exploitation of the areas of interest. This is to ensure the continuance of its activities and to meet its financial obligations as and when they fall due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in order to meet the Group’s forecast requirements. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the matur ity profiles of financial assets and liabilities. Surplus funds are generally only invested in bank deposits. At the reporting date, the Group did not have access to any undrawn borrowing facilities. The table below summarises the maturity profile of the Group and the Company’s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations : Within More than More than 1 year 1 year 5 years Total A$ A$ A$ A$ Group 2025 Non-derivatives Trade and other payables 5,359,504 – – 5,359,504 Lease liabilities 80,206 126,993 – 207,199 Borrowings 18,035,943 – – 18,035,943 23,475,653 126,993 – 23,602,646 2024 Non-derivatives Trade and other payables 3,278,107 – – 3,278,107 Borrowings 12,979,165 – – 12,979,165 16,257,272 – – 16,257,272 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 83 22. Financial risk management (continued) l) Liquidity risk (continued) The table below summarises the maturity profile of the Group and the Company’s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations (continued): Within More than More than 1 year 1 year 5 years Total A$ A$ A$ A$ Company 2025 Non-derivatives Trade and other payables 1,309,809 – – 1,309,809 Borrowings 18,035,943 – – 18,035,943 19,345,752 – – 19,345,752 2024 Non-derivatives Trade and other payables 1,166,739 – – 1,166,739 Borrowings 12,979,165 – – 12,979,165 14,145,904 – – 14,145,904 23. Fair value of assets and liabilities (a) Fair value hierarchy The tables below analyse the fair value measurements by the levels in the fair value hierarchy based on the inputs to the valuation techniques. The different levels are defined as follows: (i) Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; (ii) Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (ie derived from prices); and (iii) Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 84 23. Fair value of assets and liabilities (continued) (b) Valuation technique and significant unobservable inputs The following table shows the valuation techniques used in measuring Level 3 fair values for financial instruments at fair value in the statement of financial position, as well as the significant unobservable inputs used. Type Valuation techniques Significant unobservable inputs Inter–relationship between key unobservable inputs and fair value measurement Convertible notes Black scholes (i) Share price of the underlying share at the time of the valuation (ii) The agreed upon exercise price of the option (iii) Estimate of the stock’s standard deviation using historical data (iv) Quoted interest rate on Treasury bills or Government bonds (v) The agreed upon time until the option expires (vi) The ratio of dividends to share price (vii) Movement in AUD / USD exchange rates (i) Larger value increases value of an option (ii) Smaller value increases value of an option (iii) Larger value increases value of an option (iv) Higher interest rate increases the value of an option (v) Longer time to maturity increases value of an option (vi) Lower dividend yield increases value of an option (vii) Movement in AUD/USD exchange rate impact on valuation Call option contract Black scholes (i) Share price of the underlying share at the time of the valuation (ii) The agreed upon exercise price of the option (iii) Estimate of the stock’s standard deviation using historical data (iv) Quoted interest rate on Treasury bills or Government bonds (v) The agreed upon time until the option expires (vi) The ratio of dividends to share price i) Larger value increases value of an option (ii) Smaller value increases value of an option (iii) Larger value increases value of an option (iv) Higher interest rate increases the value of an option (v) Longer time to maturity increases value of an option (vi) Lower dividend yield increases value of an option (c) Fair value measurement of liabilities that are measured at fair value Fair value measurements Carrying at balance sheet date Amount Level 1 Level 2 Level 3 A$ A$ A$ A$ Group and company 2025 Financial assets at fair value through profit or loss 15,945,640 15,945,640 – – Embedded Derivatives of ACAM Convertible Notes 6,668,051 – 6,668,051 – Call option contract 2,767,878 – 2,767,878 – 2024 Call option contract 1,187,600 – 1,187,600 – For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 85 24. Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide returns for shareholders and maintain an optimal capital structure to reduce the cost of capital. The Group defines capital as being share capital plus reserves. The Board of Directors monitors the level of capital as compared to the Group’s long–term debt commitments. The Group is not subject to any externally imposed capital requirements. No changes were made to the Group’s and the Company’s capital management objectives or policies during the financial years ended 30 June 2025. 25. Related party transactions (a) Compensation of key management personnel Group 2025 2024 A$ A$ Short term employee benefits 1,183,426 879,560 Superannuation contributions 1,438 31,412 Share based payments 8,860,783 1,541,190 10,045,647 2,452,162 Includes amounts paid to: Non–executive directors of the Company 3,136,987 681,235 Executive Directors 6,908,660 1,770,927 10,045,647 2,452,162 Total key management personnel compensation represents gross compensation paid or payable and includes amounts capitalised to exploration and evaluation expenditure and plant and equipment. The following awards were made to directors of the Company during the current and prior financial years pursuant to the Company’s Employee Incentive Plan are as follows: 2025 Salary Sacrifice Rights Number Long Term Incentive Rights Number Christopher Charles Indermaur – 2,500,000 Richard Anthony Pegum – 15,000,000 Musje Moses Werror – 2,500,000 Paul Levi Mulder – 30,000,000 Timothy Elgon Savile Crossley – 3,500,000 – 53,500,000 2024 Christopher Charles Indermaur – 2,250,000 Richard Anthony Pegum – 10,000,000 Musje Moses Werror – 2,250,000 Paul Levi Mulder 346,797 10,000,000 Timothy Elgon Savile Crossley 858,815 5,000,000 1,205,612 29,500,000 For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 86 25. Related party transactions (continued) (a) Compensation of key management personnel (continued) The following awards were exercised and converted into one share in the Company for which award exercised, by directors of the Company pursuant to the Company’s Employee Incentive Plan: 2025 Salary Sacrifice Rights Number Long Term Incentive Rights Number Options Number Paul Levi Mulder – 30,000,000 – Richard Anthony Pegum – 13,333,000 6,000,000 Timothy Elgon Savile Crossley – 5,000,000 – – 48,333,000 6,000,000 2024 Paul Levi Mulder 1,190,251 – – Timothy Elgon Savile Crossley 2,947,556 – – 4,137,807 – – 26. Subsequent events Except as noted below, there has been no matter or circumstance which has arisen since the end of the financial year that has significantly affected, or may significantly affect the Group’s operations, the result of those operations or the Group’s state of affairs: • On 23 July 2025, the Company announced that, effective from 23 July 2025, the Company has rebranded as Pacific Lime and Cement Limited. The name change reflects the Company’s successful transition from a resource developer into an integrated supplier of building and industrial materials, led by its flagship Central Cement and Lime Project (CCL) in Papua New Guinea; • On 4 August 2025, the Company announced that the Board has approved the Final Investment Decision (FID) to proceed with the development of the Central Lime Project (CLP or the Project). After a strategic re–design of the Project, it will now have a lower up –front capital requirement and will be fully funded from existing equity. The Board of PLC has approved the Final Investment Decision with respect to the Central Lime Project. Final Investment Decision is made on the basis of a strategic re–design, reducing upfront capital and enabling the project to be fully funded from existing cash reserves, with access to additional contingent funding sources available if necessary, enabling full scale construction to commence. Landowner and community benefits strengthened, with circa PGK 2.73 million presented by PLC and PGK 1,000,000 by the Central Provincial Government to the Kido and Rearea landowner companies, reinforcing strong local support for the Project; and • On 11 August 2025, the Company announced that effective from 12 August 2025, the Company will commence trading on ASX as Pacific Lime and Cement Limited (ASX: PLA). The name and code change reflect the Company's successful transition from resource developer to an integrated supplier of building and industrial materials. The Company recently took a Final Investment Decision on its flagship Central Lime Project in Papua New Guinea, which will provide a new source of industrial lime products to Papua New Guinea and the Asia Pacific region. For personal use only
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PACIFIC LIME AND CEMENT LIMITED AND ITS SUBSIDIARIES (FORMERLY MAYUR RESOURCES LTD AND ITS SUBSIDIARIES) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2025 87 27. Authorisation of financial statements The consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company for the financial year ended 30 June 2025 were authorised for issue in accordance with a resolution of the directors dated 26 September 2025. For personal use only
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88 PLC Annual Report 2025 Shareholder & Corporate Information Shareholder Information The shareholder information set out below was applicable at 29 October 2025. A Distribution of securities Analysis of the number of equity securities by size of holding: Holding Ranges Holders above 0 up to and including 1,000 52 above 1,000 up to and including 5,000 232 above 5,000 up to and including 10,000 149 above 10,000 up to and including 100,000 353 above 100,000 230 Totals 1,016 There were 82 holders of less than a marketable parcel of listed shares (based on a share price of $0. 28 per share). B Equity security holders Twenty largest quoted equity security holders Holder Name Holding % IC CITICORP NOMINEES PTY LIMITED 189,942,270 22.65% DTJ CO PTY LTD 71,471,250 8.52% LEVEL 280 RIVERSIDE PTY LTD 71,231,103 8.49% J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 59,755,475 7.13% VELROSSO PTY LTD <HARVEY 1995 A/C> 54,840,086 6.54% ALIEN VENTURES LIMITED 39,167,857 4.67% HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 21,667,538 2.58% HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 20,152,286 2.40% UBS NOMINEES PTY LTD 17,625,327 2.10% GREENWATTLE PROPERTIES PTY LTD 15,000,000 1.79% TOUGH INVESTMENTS LIMITED 11,250,000 1.34% LOS ROQUES CORP 11,250,000 1.34% MR TIMOTHY ELGON SAVILE CROSSLEY 10,039,303 1.20% BRAZIL FARMING PTY LTD 9,419,472 1.12% QUALITY LIFE PTY LTD <THE NEILL FAMILY A/C> 9,250,000 1.10% QUALITY LIFE PTY LTD <THE NEILL FAMILY A/C> 9,128,571 1.09% TIMMOO PTY LTD <THE MAHONY FAMILY S/F A/C> 8,036,696 0.96% HNSI PTY LIMITED 7,142,858 0.85% CURRAWEENA PTY LTD <CURRAWEENA INVESTMENT A/C> 7,142,857 0.85% TIMSTER PTY LIMITED <THE MCROD SUPER FUND A/C> 7,000,000 0.83% Total 650,512,949 77.57% Total issued capital - selected security class(es) 838,658,454 100.00% For personal use only
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Unquoted equity securities Security Number on issue Number of holders Number of holders of more than 20% of securities Long Term Incentive Performance Rights 51,987,875 19 1 Salary Sacrifice Rights 1,142,203 6 - Unlisted Options 43,688,887 93 - Convertible Notes 10,000 6 1 Unlisted Long-Term Incentive Rights, Performance Rights and Unlisted Options represent rights to acquire ordinary shares. Each right or option entitles the holder to acquire one ordinary share. The names of the holders of more than 20% of the unlisted Long-Term Incentive, Performance Rights and Unlisted Options are: Long Term Incentive Rights Salary Sacrifice Performance Rights Unlisted Options Security Holder Number on issue % of total on issue Number on issue % of total on issue Number on issue % of total on issue Landsdowne (Aust) Nominees Pty Ltd ATF The R&D Pegum Trust 11,667,000 22.44% - - - - Convertible Notes Security Holder Number on issue % of total on issue Alien Ventures Limited 3,000 30.00% C Substantial shareholders Substantial shareholders (>5%) in the company are set out below: Name Shares % IC CITICORP NOMINEES PTY LIMITED 189,942,270 22.65% DTJ CO PTY LTD 71,471,250 8.52% LEVEL 280 RIVERSIDE PTY LTD 71,231,103 8.49% J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 59,755,475 7.13% VELROSSO PTY LTD <HARVEY 1995 A/C> 54,840,086 6.54% D Listed shares subject to escrow Not applicable For personal use only
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90 PLC Annual Report 2025 Corporate Directory Board of Directors (as at 31 October 2024) Mr. Richard Pegum Executive Chairman Mr. Paul Mulder Managing Director Mr. Timothy Crossley Director Mr. Christopher Indermaur Non-Executive Independent Director Mr. Musje Moses Werror Executive Director Mr. William Wong Non-Executive Independent Director Company Secretary (Australia) Mr. Kerry Parker Telephone: +61 7 3157 4400 Company Secretary (Singapore) Vistra 9 Raffles Place, #26-01 Republic Plaza Singapore 048619 Telephone: +(65) 6438 1330 Registered Office (Singapore) Vistra 9 Raffles Place, #26-01 Republic Plaza Singapore 048619 Telephone: +(65) 6438 1330 Principal Place of Business (Australia) Level 7 300 Adelaide Street Brisbane QLD 4000 Telephone: +61 7 3157 4400 Postal address PO Box 10582 Brisbane QLD 4000 Website: www.PLACLTD.com Share Registry Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 Telephone: +61 1300 288 664 Stock Exchange Australian Securities Exchange 20 Bridge Street Sydney, NSW 2000 ASX Code PLA Auditors Baker Tilly TFW Legal Advisors Jones Day (Australia) Ashurst (PNG) For personal use only
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For personal use only