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The Group incurred a net loss before tax of $9.6 million for the six months ended 30 June 2022 (2021: $4.8 million). As
at 30 June 2022, the Group had net current liabilities of $20.0 million (December 2021: $8.8 million).
However, the balance sheet at December 2021 had net current liabilities of $8.8m which increased to $20.0m at 30
June 2022. A material amount of development has been carried out not only in the period under review but also in the
12-months preceding that which has now resulted in the operation producing some operational cash flow, although this
is insufficient to service the working capital requirements. The development of the mine and the losses in the first
quarter were only partially funded from new equity and the purchase and sale of the gold stream. The shortfall has
resulted in an increase in accounts payable. In addition, debt repayments have now become current.
The balance sheet requires restructuring to support the operations by accelerating repayment of legacy commitments
made during the intense Covid period and bringing operational accounts payable balances back to current terms. In
addition, rescheduling of the repayment of debt to match Rambler’s operational cash flow generation and further capital
expenditures to create further efficiencies is required.
Managing cashflow constraints are impacting the mining schedule and therefore resolution of legacy commitments is
an immediate priority. Following a review of the latest Group working capital forecasts, the Group needs to raise funds
to materially reduce the current creditor position in the short term and for general working capital in the next 12 months
through an issue of new equity and restructuring of debt. The forecasts assume that agreement can be reached with
NewGen to defer capital payments into 2023. However, whilst the Company is engaged in discussions with NewGen,
there can be no certainty that NewGen will agree to defer or reschedule the repayment of its loan, or in the event that
the loan is deferred and payments are rescheduled, the terms on which the revised loan will be secured.
The Group’s ability to continue operating in the normal course of business is dependent upon establishing sufficient
operating cash flows from the Ming Mine, and to the extent required, through access to equity and debt markets. These
factors together with the continued unpredictability of cost inflation and the copper prices indicate the existence of a
material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern.

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