Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Exploring alternative production methods to reduce reliance on grid electricity, gas, ferrosilicon, and aluminum, aiming for sustainable, zero-carbon magnesium production.

Social Achievements

• Potential to generate significant royalties for the Northern Territory government and provide jobs for Territorians. Preference given to local and indigenous-owned businesses as contractors.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Securing funding for the project.
• Finalizing magnesium metal sales and/or offtakes.
• Obtaining governmental and regulatory project approvals.
• Managing risks related to magnesium prices, energy prices, and foreign exchange rates.

Mitigation Strategies

• Discussions with third parties regarding potential joint ventures and financing.
• Seeking funding from car makers, aluminum-magnesium alloy producers, and trading houses.
• Exploring funding options through the Australian Federal Government's Critical Minerals Facility (CMF) and Northern Australia Infrastructure Facility (NAIF).
• Heads of Agreement (HoA) executed with Darwin Port for export of magnesium metal.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to local and indigenous-owned businesses.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of a sustainable, zero-carbon magnesium production process.

Reporting Standards

Frameworks Used: JORC Code (2004, 2012)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Zero-carbon magnesium metal

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental performance
• Diversity

Environmental Achievements

• Evaluating environmentally friendly production methods for sustainable magnesium metal, utilizing solar power to reduce production costs and carbon footprint.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Funding requirements for operations and planned exploration expenditure.
• Negative net current assets.
• Ongoing situation in the Luhansk region (Ukraine) impacting Bobrikovo Project.
• Forfeiture application against tenement E08/2756.

Mitigation Strategies

• Seeking additional funding through debt increase, share capital raising, cost reduction, or asset sales.
• Strict control over expenditure.
• Pausing discussions regarding Bobrikovo Project.
• Intending to defend tenement E08/2756 against forfeiture application.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Low magnesium prices between $1,300/t and $2,000/t and low magnesium oxide prices (CCM and DBM) during this period. These depressed prices were caused by rapid growth in Chinese production capacity of both magnesium metal and magnesium oxides, with supply growth outstripping the growth in demand.
• Current situation in Ukraine is well known to the market from extensive media coverage.
• Suspension from quotation on ASX due to inadequate level of operations.

Mitigation Strategies

• Discussions with potential buyers of magnesium carbonate rock (DSO), various magnesium oxides and various magnesium metal users and magnesium buyers, including aluminium/magnesium alloy producers supplying all major car makers regarding potential supply of magnesium metal from Winchester.
• Discussions with Australian Federal Government and US Department of Defence regarding potential funding for the development of magnesium smelter in Australia or in US.
• Sale of Geolsec mineral lease ML27362 for $4.35 million and a royalty.
• Intends to use the proceeds from this transaction to retire debt, for working capital purposes, and for exploration and development work on its projects, with the focus on Rum Jungle Project.
• Strict control over expenditure and curtailing discretionary exploration and corporate costs.

Supply Chain Management

Climate-Related Risks & Opportunities