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PANTHER METALS
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ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
Principal Risks and Uncertainties
The principal risks and uncertainties of the Group are
outlined below.
A ’majority of the Group’s operating costs will be
incurred in Canadian dollars, whilst the Group has
raised capital in £ Sterling
The Group will incur exploration costs in Canadian
Dollars but it has raised capital in £ Sterling. Fluctuations
in exchange rates of the Canadian Dollar against £
Sterling may materially affect the Group’s translated
results of operations. In addition, given the relatively
small size of the Group, it may not be able to effectively
hedge against risks associated with currency exchange
rates at commercially realistic rates. Accordingly, any
significant adverse fluctuations in currency rates could
have a material adverse effect on the Group’s business,
financial condition and prospects to a much greater
extent than might be expected for a larger enterprise.
The Group will need additional financial resources
if it moves into commercial exploitation of any
mineral resource that it discovers
Whilst the Group has sufficient financial resources
to conduct its planned exploration activities, meet its
committed licence obligations and cover its general
operating costs and overheads for at least 12 months,
the Group will need additional financial resources if it
wishes to commercially exploit any mineral resource
discovered because of its exploration activity.
The Group has budgets for all near and short-term
activities and plans, however in the longer term the
potential for further exploration, development and
production plans and additional initiatives may arise,
which have not currently been identified and which may
require additional financing which may not be available
to the Group when needed, on acceptable terms, or
at all. If the Group is unable to raise additional capital
when needed or on suitable terms, the Group could
be forced to delay, reduce, or eliminate its exploration,
development, and production efforts.
Even if the Group makes a commercially viable
discovery in the future there are significant risks
associated with the ability of such a discovery
generating any operational cashflows
The economics of developing mineral properties
are affected by many factors including the cost of
operations, variations of the grade of ore mined,
fluctuations in the price of the minerals being mined,
fluctuations in exchange rates, costs of development,
infrastructure and processing equipment and such other
factors as government regulations, including regulations
relating to royalties, allowable production, importing
and exporting of minerals and environmental protection.
Given that the Group is at the early exploration stage
of its business many of these factors cannot be
accurately assessed, costed, planned for or mitigated
at the current time. As a result of these uncertainties,
there can be no guarantee that mineral exploration and
subsequent development of any of the Group’s assets
will result in profitable commercial operations.
The Group is not currently generating revenue and
will not do so for in the near term
The Group is an exploration company and will remain
involved in the process of exploring and assessing
its asset base for some time. The Group is unlikely to
generate revenues until such time as it has made a
commercially viable discovery. Given the early stage
of the Group’s exploration business and even if a
potentially commercially recoverable reserve were
to be discovered, there is a risk that the grade of
mineralisation ultimately mined may differ from that
indicated by drilling results and such differences could
be material. Accordingly given the very preliminary
stages of the Group’s exploration activity it is not
possible to give any assurance that the Group will ever
be capable of generating revenue at the current time.
Going Concern
As a junior exploration company, the Directors are aware
that the Company must seek funds from the market
in the next 12 months to meet its investment and
exploration plans and to maintain its listing status.
The Group’s reliance on a successful fundraising
presents a material uncertainty that may cast doubt on
the Group’s ability to continue to operate as planned
and to pay its liabilities as they fall due for a period not
less than twelve months from the date of this report.
The Company successfully raised £350,000 in the year
ended 31 December 2023 through issuing debt. As at
the year-end date the Group had total cash reserves of
£66,120 (2022: £48,859).
The Directors are aware of the reliance on fundraising
within the next 12 months and the material uncertainty
this presents but having reviewed the Group’s working
capital forecasts they believe the Group is well placed
to manage its business risks successfully providing the
fundraising is successful. The financial statements have
been prepared on a going concern basis and do not
include adjustments that would result if the Group were
unable to continue in operation.
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
