Announcement PDF Aeris Resources Limited Appendix 4E Preliminary final report 1. Company details Name of entity: ABN: Reporting period: Previous period: Aeris Resources Limited 30 147 131 977 For the year ended 30 June 2023 For the year ended 30 June 2022 2. Results for announcement to the market 2023 $'000 2022 $'000 Revenues from ordinary activities 612,490 386,587 225,903 58% Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA)* 32,014 93,652 (61,638) (66%) Profit/(loss) from ordinary activities after tax attributable to the owners of Aeris Resources Limited (139,754) 6,010 (145,764) (2425%) Profit/(loss) for the year attributable to the owners of Aeris Resources Limited (139,754) 6,010 (145,764) (2425%) 2023 Cents 2022 Cents * Change $'000 Change % Refer to the Directors' Report for a reconciliation of Adjusted EBITDA Earnings per share Basic earnings/(loss) per share Diluted earnings/(loss) per share (20.2) (20.2) 1.8 1.7 On 8 July 2022, the Company completed a share consolidation. Aeris shares were consolidated at the ratio of 7 fully paid ordinary shares into 1 fully paid ordinary share. Earnings per share calculations for both the current year and prior year are reflective of the share consolidation. Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the consolidated entity after providing for income tax amounted to $139,754,000 (30 June 2022: profit of $6,010,000). 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security 38.6 Previous period Cents 62.8 The net tangible assets per ordinary security at 30 June 2022 has been restated for the share consolidation that was completed on 8 July 2022. Aeris Resources Limited Appendix 4E Preliminary final report 4. Control gained over entities On 1 July 2022, Aeris Resources Limited acquired 100% of the issued shares in Round Oak Minerals Pty Limited. Please refer to note 30 of the 30 June 2023 Annual Financial Report for additional information regarding this acquisition. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements have been audited by PricewaterhouseCoopers and an unmodified opinion has been issued. 11. Attachments Details of attachments (if any): The Annual Financial Report of Aeris Resources Limited for the year ended 30 June 2023 is attached. Aeris Resources Limited ABN 30 147 131 977 Annual Financial Report - 30 June 2023 Aeris Resources Limited Corporate directory 30 June 2023 Directors Andre Labuschagne - Executive Chairman Michele Muscillo - Non-executive Director Colin Moorhead - Non-executive Director Sylvia Wiggins - Non-executive Director Robert Millner - Non-executive Director Company secretaries Robert Brainsbury Dane van Heerden Registered office and principal place of business Level 6 120 Edward Street Brisbane QLD 4000 Phone: (07) 3034 6200 Share register Automic Level 5 126 Phillip Street Sydney NSW 2000 Phone: 1300 288 664 (within Australia) +61 2 9698 5414 (outside Australia) Auditor PricewaterhouseCoopers Level 23 480 Queen Street Brisbane QLD 4000 Solicitors HopgoodGanim Lawyers Level 8 1 Waterfront Place Brisbane QLD 4000 Stock exchange listing Aeris Resources Limited shares are listed on the Australian Securities Exchange (ASX code: AIS) Website www.aerisresources.com.au Corporate Governance Statement www.aerisresources.com.au/about/corporate-governance/ 1 Aeris Resources Limited Directors' Report 30 June 2023 The Directors present their report, together with the consolidated financial report of the Aeris Resources Limited Group (‘consolidated entity’), consisting of Aeris Resources Limited (‘Aeris’ or ‘Company’) and the entities it controlled at the end of, or during, the year ended 30 June 2023. DIRECTORS The Directors of the Company in office during the financial year and up to the date of this report were: Name, experience and other directorships Andre Labuschagne – Executive Chairman Mr Labuschagne is an experienced mining executive with a career spanning over 30 years across operations in Australia, Indonesia, South Africa, PNG and Fiji. Mr Labuschagne has held various corporate and operational roles in companies including Norton Gold Fields, Emperor Gold Mines, DRD Gold and AngloGold Ashanti. Mr Labuschagne holds a Bachelor of Commerce from Potchefstroom University in South Africa. Special Responsibilities Appointed / Resigned Executive Chairman Appointed 20-Dec-2012 Chairman of the Audit and Risk Committee and member of the Remuneration and Nomination committee and the Sustainability Committee Appointed 2-May-2013 Chairman of the Remuneration and Nomination Committee and Member of the Audit and Risk Committee and the Sustainability Committee Appointed 27-July-2020 Other current directorships (ASX listed entities): Magontec Limited (ASX:MGL) Former directorships in the past 3 years (ASX listed entities): None Michele Muscillo – Independent Non-Executive Director Mr Muscillo is a Partner specialising in corporate law with HopgoodGanim Lawyers. Mr Muscillo is an admitted Solicitor and has a practice focussed almost exclusively on mergers & acquisitions and capital raising. Mr Muscillo has acted on a variety of corporate transactions including initial public offerings, takeovers and acquisitions. Mr Muscillo has a Bachelor of Laws from Queensland University of Technology and was a recipient of the QUT University Medal. Other current directorships (ASX listed entities): Xanadu Mines Limited (ASX:XAM) and Mako Gold Limited (ASX:MKG). Former directorships in the past 3 years (ASX listed entities): Cardinal Resources Limited (ASX:CDV). Colin Moorhead – Independent Non-Executive Director Mr Moorhead is an experienced industry executive with a demonstrated track record over three decades of building value in mining companies through innovation, discovery, project development and safe, efficient operations. A geologist by training, Mr Moorhead is also known for strong leadership, strategy and execution. Mr Moorhead’s career has involved both operational and corporate executive responsibilities including global responsibility for exploration and resource development at Newcrest Mining and CEO of PT Merdeka Copper Gold (IDX:MDKA), where he built and led the team that constructed and commissioned the highly successful Tujuh Bukit Gold Mine. Colin is also currently Non-Executive Chairman of Xanadu Mines (ASX:XAM), Non-Executive Chairman of Sihayo Gold Limited (ASX: SIH), Non-Executive Director of Coda Minerals (ASX: COD) and Non-Executive Director of Ramelius Resources Limited (ASX:RMS). Former directorships in the past 3 years (ASX listed entities): Finders Resources Limited. 2 Aeris Resources Limited Directors' Report 30 June 2023 Name, experience and other directorships Sylvia Wiggins – Non-Executive Director Ms Wiggins is a globally experienced senior executive and investment banker with a demonstrated track record over 25 years in public markets, with a focus on finance, strategy and risk. Ms Wiggins has been the CEO and CFO of public listed entities, with her most recent role as Executive Director – Finance & Commercial at ASX listed renewable energy company Infigen Energy, prior to its takeover. As an executive, Ms Wiggins has been a part of the leadership teams transforming businesses from the strategic, operating and capital structure perspectives to both preserve and create shareholder value. Ms Wiggins is a member of the Independent Assurance Review Board for the Department of Defence and is also currently Non-Executive Director of Service Stream, Non-Executive Director of Collgar Renewables, NonExecutive Director of Scheme Financial Vehicle (NSW Energy Roadmap) and Non-Executive Director of Epic Energy. Special Responsibilities Appointed / Resigned Chairman of the Sustainability Committee and Member of Audit and Risk Committee Appointed 18-October2021 Former directorships in the past 3 years (ASX listed entities): None Robert Millner – Non-Executive Director Mr Millner is the Chairman of Australian investment house Washington H Soul Pattinson (ASX:SOL). Mr Millner has extensive experience in the investment industry, and the Chairman of Brickworks Limited (ASX: BKW), BKI Investment Co Ltd and New Hope Corporation Limited (ASX:NHC) and a Non-Executive Director of Tuas Limited (ASX:TUA), Apex Healthcare Berhad and TPG Telecom Ltd (ASX:TPG). Appointed 1-July 2022 Former directorships in the past 3 years (ASX listed entities): Milton Corporation Limited (delisted from ASX on 5 October 2021) COMPANY SECRETARIES Robert Brainsbury Mr Brainsbury is an experienced financial executive and has held senior operational and finance roles with several bluechip industrial and resources companies including Norton Gold Fields, MIM Holdings Limited, Xstrata, Rio Tinto and BIS Industrial Logistics. Mr Brainsbury is a qualified accountant and holds a Bachelor of Business degree with majors in Accounting and Marketing. Dane van Heerden CA Ms van Heerden is a qualified chartered accountant, with over 20 years’ experience in both Australia and abroad. MEETINGS OF DIRECTORS The attendance of Directors at Board and Committee meetings during the financial year were as follows: Directors Andre Labuschagne Michele Muscillo Colin Moorhead Sylvia Wiggins Robert Millner Board A 12 12 12 12 12 ARC B 12 12 12 12 12 A 3 3 3 - B 3 3 3 - Sustainability A B 2 2 2 2 2 2 - A = Number of meetings held during the time the Director was a member of the Board and/or Committee B = Number of meetings attended during the time the Director was a member of the Board and/or Committee 3 Remuneration A B 1 1 1 1 - Aeris Resources Limited Directors' Report 30 June 2023 The Board established a Risk and Sustainability Committee on 28 June 2022. During the reporting period, the Board restructured its committees and transferred risk responsibilities from the Risk and Sustainability Committee to the Audit Committee and in line with the change of responsibilities, changed the Committees names to Sustainability Committee and Audit and Risk Committee. On 23 May 2023, the Board reconstituted the Remuneration Committee and the Nomination Committee into a single committee and named the committee ‘Remuneration and Nomination Committee’. The members of the Remuneration and Nomination Committee are the previous members of the Remuneration Committee - Mr Colin Moorhead (Chair) and Mr Michele Muscillo. There were no meetings of the Nomination Committee during the financial year. CORPORATE GOVERNANCE The Company’s Corporate Governance Statement for the year ended 30 June 2023 may be accessed from the Company’s website at https://www.aerisresources.com.au/about/corporate-governance. PRINCIPAL ACTIVITIES The principal activities of the consolidated entity for the year ended 30 June 2023 were the production, sale and exploration of copper, zinc, gold and silver. Other than as referred to on pages 4 to 7, there were no significant changes in those activities during the financial year. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS ACQUISITION OF ROUND OAK MINERALS PTY LTD Aeris acquired the Round Oak Group (Round Oak Minerals Pty Ltd and wholly owned subsidiaries) from Washington H. Soul Pattinson Limited (WHSP). Round Oak Minerals is an Australian focused resources company with its primary assets being:  Jaguar Zn/Cu mine in Western Australia;  Mt Colin Cu/Au mine in North-West Queensland; and  Stockman Cu/Zn development project in Victoria The purchase consideration for the acquisition included the following components:  cash payment on settlement of $80 million. This was funded through a fully underwritten $117 million equity raise; and  the issue and allotment of fully paid ordinary shares in Aeris at a deemed issue price of $0.105 per share to a total value of $154 million, being 1,466,666,667 shares valued at $0.067 per share on 1 July 2022 totalling $98.27 million. The transaction completed on 1 July 2022. Transaction costs relating to the acquisition of $11.580 million were incurred and recognised in the profit and loss for the year ending 30 June 2023. Aeris also received working capital adjustments of $29.20 million and was adjusted against the purchase consideration allocated on 1 July 2022. COMPLETION OF EQUITY PLACEMENT On 1 July 2022, $17.1 million, representing the balance of the $117 million equity raise (placement and entitlement offer) was received. The other $100 million of the equity raise was received by 30 June 2022. SHARE CONSOLIDATION At an Extraordinary General Meeting of shareholders held on 24 June 2022, shareholders approved to consolidate every 7 ordinary shares into 1 ordinary share, post completion of the $117.1 million equity raise. The share consolidation took effect in early July 2022. OPERATING REVIEW TRITTON COPPER OPERATIONS (TRITTON) Operations The Tritton Copper Operations produced 17,206 tonnes of copper during the financial year ending 30 June 2023. A total of 1.37 million tonnes of ore were mined, predominantly from the Tritton and Murrawombie underground mines, at an average grade of 1.36% Cu. The high-grade Avoca Tank mine was brought into production in Q4. Production from the Budgerygar deposit, part of the Tritton mine complex, was delayed by approximately 9 months due to geotechnical issues installing the ventilation shaft. The delay accessing ore from Budgerygar significantly impacted copper production for the year. The ventilation shaft was subsequently completed in July 2023 enabling production to ramp up in FY2024. 4 Aeris Resources Limited Directors' Report 30 June 2023 Ore mined Grade mined Ore milled Grade milled Recovery Total copper produced Gold produced Units tonnes % Cu tonnes % Cu % tonnes Oz 30 June 2023 1,369,364 1.36 1,352,424 1.34 94.6 17,205 4,582 30 June 2022 1,488,120 1.30 1,500,463 1.30 94.6 18,581 4,312 30 June 2021 1,573,679 1.56 1,557,803 1.56 93.7 22,987 7,228 Approximately $39.1 million was invested in growth capital at Tritton over the financial year ending 30 June 2023. This was mostly associated with the development of the new Avoca Tank and Budgerygar underground mines. A further $5.6 million was invested in exploration. Exploration Exploration activities at Tritton during the financial year ended 30 June 2023 focused on extending known deposits and identifying greenfield targets for new resources. At the Constellation deposit, located 45km north of the Tritton mill, an updated Mineral Resource was released. The Mineral Resource now totals 6.7Mt at 1.85% Cu and 0.58g/t Au, an uplift from the previous resource by 102% in tonnage and 162% in contained copper metal. The Constellation deposit remains open down plunge with several downhole electromagnetic (EM) modelled plates yet to be adequately tested. Constellation remains a key development project to extend the life of the Tritton Operation. Environmental impact studies and preliminary studies on open pit and underground mining options progressed during the year, with further resource definition drilling planned in FY2024. The northern portion of the Tritton tenement package, on which the Constellation deposit was discovered in late 2020, is considered highly prospective for further discoveries. During the financial year ended 30 June 2023, the airborne electromagnetic (AEM) survey was completed over these tenements and 14 high-priority anomalies were identified. Work commenced on ground-based EM surveys to further define targets for a subsequent drilling program. Drilling was also undertaken on the Kurrajong deposit, located approximately 25km east of the Tritton processing plant. A maiden Mineral Resource was released totalling 2.2Mt at 1.7% Cu, 0.2g/t Au and 5g/t Ag for 37kt contained Cu metal, 13koz contained Au metal and 347koz contained Ag metal. High-grade copper is associated with massive sulphide lenses, of which three have been modelled and incorporated into the Mineral Resource estimate. The Kurrajong mineralised system remains open down-plunge and drilling has intersected mineralisation 300m down plunge below the current Mineral Resource including:  TKJD024W1: 17m @ 1.3% Cu, 0.2g/t Au and 4g/t Ag (17m true width) At the Murrawombie deposit, an exploration hole (MWNM001) was drilled targeting down-plunge extensions below the current Mineral Resource footprint. Several high-grade copper lenses were intersected approximately 250m down-plunge of the known mineralisation. A downhole EM survey also defined multiple EM conductors positioned directly along strike from the drill hole. A follow up drill program is planned, targeting the modelled EM plates at Murrawombie. At the Avoca Tank deposit, underground drilling intersected massive sulphide mineralisation 180m below the current Mineral Resource. Further drilling is planned in FY2024, targeting increases to the Mineral Resource at the Avoca Tank deposit. CRACOW GOLD OPERATIONS (CRACOW) Cracow produced 48,221oz of gold during the financial year ended 30 June 2023. Mined ore tonnes of 575,382 was supplemented with stockpiles, for total ore tonnes milled of 666,978. Mined grades steadily improved over the year (FY23 average 2.75g/t Au) and reconciled well to the rebuilt geological model. Ore mined Grade mined Ore milled Grade milled Recovery Gold produced Gold sold Units Tonnes g/t Au Tonnes g/t Au % Oz Oz 30 June 2023 575,382 2.75 666,978 2.50 90.0 48,221 47,839 5 30 June 2022 505,260 3.26 663,912 2.80 90.2 53,920 55,358 30 June 2021 541,910 4.49 602,789 4.12 92.3 73,685 73,692 Aeris Resources Limited Directors' Report 30 June 2023 Exploration Exploration activities during the year focused on drilling at the Golden Plateau deposit and drill testing of targets within the current mining area, the Western Vein Field. A total of $4.5 million was invested in exploration at Cracow during the financial year ended 30 June 2023. A drill campaign was completed at the Golden Plateau deposit during the first half of the financial year ended 30 June 2023, targeting interpreted high-grade north-south structures surrounding the historical workings. A maiden Mineral Resource estimate of 620kt at 3.1g/t Au containing 62koz Au metal was reported during the year. The reported Mineral Resource includes potential open pit and underground mineralisation. In addition, an Exploration Target of 430kt – 1,000kt at 3g/t – 4g/t Au for 60koz – 130koz of contained gold has been defined for the Golden Plateau deposit, peripheral to the Mineral Resource. Golden Plateau is considered to be a potential near-term source of additional ore for the Cracow mill and is a priority for exploration in FY2024. The potential quantity and grade of the Exploration Target is conceptual in nature and is therefore an approximation. There has been insufficient exploration drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. Exploration was also conducted in the Southern Vein Field, a highly prospective 5km x 4km corridor located immediately south of the current underground mine infrastructure. The prospective structures which host gold mineralisation in the Western Vein Field are interpreted to continue under several hundred metres of cover in the Southern Vein Field. To gain an understanding of the geology beneath the cover sequences, magneto-telluric (MT) and ambient noise tomography (ANT) geophysical surveys were undertaken. A series of structural lineaments were interpreted from the dataset, which is highly encouraging. Target areas defined from the geophysical surveys will form the basis for a first-pass drill program at the Southern Vein Field. NORTH QUEENSLAND OPERATIONS Mining operations at the Mt Colin mine produced 426.1kt of copper/gold ore during the financial year ended 30 June 2023. Mined ore was trucked to Glencore’s Mt Isa Operations and Evolution Mining’s Ernest Henry Operations for processing. A total of 362,876 tonnes of ore was processed during the financial year, producing 7,110 tonnes of copper and 3,852 ounces of gold. At the end of the year, stockpiles of over 100kt of mined ore remained at Ernest Henry for processing in FY2024, approximately 86kt of stockpiled ore was pre-sold (provisional payment received) at the end of the financial year. As the mine is in its final years of production, minimal capital development was undertaken. The Mt Colin mine was affected by a severe weather event in north Queensland during the first half of the financial year ended 30 June 2023, impacting mining activities and toll processing at Ernest Henry. Ore mined Grade mined Ore milled Grade milled Recovery Copper produced Gold produced Units Tonnes % Cu Tonnes % Cu % Tonnes Oz 30 June 2023 426,135 2.39 362,876 2.18 89.8 7,110 3,852 Exploration Exploration activities during the financial year ended 30 June 2023 focused on the Barbara deposit, located approximately 70km northeast of Mt Isa. The Barbara open pit copper mine commenced production in March 2019 with sulphide ore crushed and trucked to Mt Isa for processing, and ceased operations in December 2020. During the year a 15 hole drill program was undertaken to better define the mineralisation remaining below the old pits. An updated Mineral Resource of 2.2Mt at 2.0% Cu and 0.2g/t Au containing 45kt contained Cu metal and 12koz contained Au metal was estimated based on the new drilling. Mineralisation at Barbara has been traced approximately 700m along-strike with 400m vertical extent in the deepest southern portion of the deposit and remains open down-plunge. There is significant potential to increase the Mineral Resource with further drilling. In FY2024 Aeris will undertake feasibility studies and permitting activities for a potential underground mining operation at Barbara. 6 Aeris Resources Limited Directors' Report 30 June 2023 JAGUAR OPERATIONS (JAGUAR) During the financial year ended 30 June 2023 operations at the Bentley mine (Bentley) produced 402,574 tonnes of ore, resulting in metal production of 22,479 tonnes of zinc, 3,057 tonnes of copper, 718,147 ounces of silver and 2,958 ounces of gold. Over the last two quarters of the financial year the mine experienced three separate mining induced seismic events, which delayed production and required a cessation of operations in the high-grade Bentayga mining area. Production was also impacted by low development rates caused by congestion in the lower levels of the mine and limited ventilation. In August 2023 an announcement was made to suspend production and place Jaguar Operations on care and maintenance due to forecast operating losses in FY2024. The decision preserves the in-ground value of the significant resources identified across the Jaguar tenements. In FY2024 Aeris will undertake a feasibility study on options to restart Jaguar at higher throughput rates by incorporating other known resources on the tenements. Ore mined Grade mined Ore milled Grade milled Zinc recovery Zinc produced Copper produced Gold produced Silver produced Units Tonnes % Zn Tonnes % Zn % Tonnes Tonnes Oz Oz 30 June 2023 402,574 5.95 432,631 5.97 87.1 22,479 3,057 2,958 718,147 Exploration During the financial year ended 30 June 2023, exploration activities were focused on the high-grade Turbo lens at Bentley and a review of greenfield targets along strike from known deposits. Resource definition drilling extended the footprint of the Turbo mineralisation a further 200m along strike. An updated Mineral Resource estimate was completed resulting in 1.26Mt at 1.82% Cu, 8.5% Zn, 0.72g/t Au and 47g/t Ag. This Mineral Resource was a 23% increase in tonnage, 17% increase in contained copper metal and 39% increase in contained zinc metal compared to the previous estimate. The Turbo lens is now the second largest massive sulphide lens ever discovered at the Bentley mine. Grade control drilling at Bentley extended the high-grade Java Deeps lens and also intersected a new massive sulphide lens, named Bacalar. High grade drill intersections through the Bacalar lens include:  23BUDD009 15.8m @ 3.70% Cu, 6.06% Zn, 101g/t Ag, 1.61g/t Au (14.4m true width)  23BUDD005 11.3m @ 1.95% Cu, 12.1% Zn, 63g/t Ag, 0.85g/t Au (10.6m true width)  23BUDD013 18.6m @ 1.80% Cu, 6.85% Zn, 75g/t Ag, 1.49g/t Au (15.6m true width). Bacalar has now been defined 70m along strike and 120m down plunge, while Java Deeps has been defined 100m along strike and 140m down plunge. During the year, a re-estimation of the remaining Mineral Resource at the previously operating Jaguar mine was completed. A Mineral Resource of 0.8Mt grading 2.28% Cu, 4.66% Zn and 61g/t Ag was defined, comprising high-grade remnant sills and pillars within the old mine workings as well as additional mineralisation outside the mining footprint. Dewatering of the Jaguar mine commenced to enable a review of ground conditions for potential restart studies. The broader Jaguar tenements are considered highly prospective for both base metals and gold mineralisation. During the year a regional gravity survey was completed to assist with identifying prospective targets along with regional mapping, surface geochemistry and electromagnetic geophysics datasets. Approximately 2,500 historical bottom-of-hole air-core (BOH AC) drill holes were also re-assayed to improve the understanding of geochemical vectors associated with volcanic hosted massive sulphide (VHMS) deposits. The initial focus has been an 8km strike corridor between the Jaguar and Triumph deposits. Within this area, 21 gravity anomalies have been identified within prospective rock sequences, including two coincident gravity/BOH AC geochemistry anomalies. The geochemistry dataset has defined 19 anomalies (some new and others previously identified) with strike extents exceeding 100m. 7 Aeris Resources Limited Directors' Report 30 June 2023 FINANCIAL REVIEW Financial Results Primarily due to operational issues at the Tritton Copper Operation and Jaguar Zinc/Copper Operation resulting in lower production than planned, the consolidated entity recorded a loss after tax for the financial reporting year to 30 June 2023 of A$139.754 million, compared with a profit after tax for the year ended 30 June 2022 of A$6.010 million. The results for year were influenced by a number of key factors, which included: • • • • • Revenue from contracts with customers was A$612.490 million, compared to A$386.587 million for the previous corresponding period. This reflects the following factors: o Contributions from the Mt Colin operation ($107.698 million) and Jaguar operation ($166.007 million); o Tritton revenue of $208.659 million was lower than the prior corresponding period ($246.104 million) due to lower copper production (17,205 tonnes vs 19,032 tonnes in 2022) and lower copper price received (A$11,045/t vs $12,931/t); o Cracow revenue of $130.120 million compared to $140.480 million in FY2022, due to lower gold produced (48,221oz vs 53,920oz) and partially offset by higher gold prices (A$2,698/oz vs A$2,539/oz). Cost of goods sold increased to $705.464 million from $353.435 million in the prior corresponding period due largely to the inclusion of the Mt Colin and Jaguar assets for the first time, which contributed $303.5 million. Transaction costs of A$11.580 million were recognised for the year ended 30 June 2023 in relation to the acquisition of the Round Oak Minerals Group; An impairment of A$1.700 million was recognised in relation to the Torrens Exploration Project; and A foreign exchange gain of A$1.969 million was recognised for the year ended 30 June 2023 (30 June 2020: A$0.4 million). The following table contains a reconciliation of profit before income tax to EBITDA (earnings before income tax and depreciation and amortisation) and Adjusted EBITDA. Reconciliation of profit before income tax to EBITDA and Adjusted EBITDA: 2023 $'000 2022 $'000 (139,754) 150,571 8,511 19,328 6,010 74,334 5,987 86,331 Impairment of assets Transaction expense Net foreign exchange gain Movement in financial assets at fair value through profit or loss 1,700 11,580 (1,969) 1,375 4,349 1,951 (418) 1,439 Adjusted EBITDA 32,014 93,652 Profit/(loss) before income tax expense Depreciation and amortisation Finance costs EBITDA EBITDA and adjusted EBITDA are non-IFRS earnings measures that do not have any standardised meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. These measures, which are unaudited, are important to management as an additional way to evaluate the consolidated entity's performance. Financial Position At 30 June 2023, the consolidated entity had a positive net asset position of A$266.369 million (30 June 2022: A$293.497 million). The June 2023 net asset position for the consolidated entity was impacted by a number of key factors, including: • • • On 1 July 2022, Round Oak Minerals Pty Ltd was acquired for a net purchase consideration of $149.06 million. Investments of $59.784 million into new mining projects, including exploration for the financial year ended 30 June 2023. Working capital deficit of $55.706 million, compared to a working capital surplus in th