FY2021
DOCA completed
Control returned to directors in June following the DOCA. The associated gains explain the large profit despite negative operating cash flow.
ASX: AHK · Five-year financial review
(ASX: AHK) Ark Mines Financial Review - FY2021~25
Ark Mines moved from a DOCA recapitalisation to funding the Sandy Mitchell exploration and development programme. Its exploration asset base grew while operating cash flow remained negative. The exceptional FY2021 profit and later project milestones should not be mistaken for a producing mine’s earnings history.
Reading the figures: Units are stated above each table or beside the metric. Brackets denote negative amounts. Supported nil is shown as zero; unlike reporting bases remain separately labelled.
FY2025 cash
A$1.301m
Cash at 30 June 2025.
FY2025 loss
A$1.185m
After the ATO R&D credit.
Exploration assets
A$5.475m
Capitalised costs, not cash value of minerals.
Convertible-loan cash
A$0.550m
Two related-party advances during FY2025.
Five years in context
The 2021 DOCA extinguished pre-existing liabilities and returned control to the directors. The resulting gain makes statutory profit a poor stand-alone measure of operating progress across this period. The subsequent financial record is primarily one of recapitalisation and exploration expenditure.
Ark acquired MIJ Holdings in December 2021 through shares and acquired Sandy Mitchell in March 2023. Share-funded acquisitions and capitalised exploration add assets without necessarily appearing as equivalent cash expenditure in the same year.
Events behind the numbers
FY2022
MIJ acquired through shares
The December acquisition used nine million shares valued at A$1.8m. Recapitalisation and debt-settlement expenses also affected earnings.
FY2023
Sandy Mitchell enters the portfolio
The March acquisition introduced Sandy Mitchell. The acquisition and subsequent exploration costs are distinct from the annual cash-payment line.
FY2024
Drilling supports a maiden resource
Completion of Stage 2 drilling supported the maiden resource estimate. A resource estimate is not production, sales or cash revenue.
FY2025
Study work and convertible funding
Following the December scoping study, the board resolved to proceed to pre-feasibility work. Two convertible-loan advances provided A$0.55m.
FINANCIAL REVIEW / 01
Funding kept pace with cash consumption in FY2025
Net financing broadly offset the combination of operating and investing outflows in FY2025, leaving cash slightly below the previous balance date. This is a funded exploration programme, not evidence of operating self-sufficiency.
Cash buffer at each June year-end
A$ million
Closing cash
AI-generated presentation · values from Earnings and cash flows through the recapitalisation; no missing values plotted as zero.
Operating, investing and financing cash flow
A$ million
Operating cash flowInvesting cash flowFinancing cash flow
AI-generated presentation · values from Earnings and cash flows through the recapitalisation; no missing values plotted as zero.
Earnings and cash flows through the recapitalisation
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Continuing-operations profit / (loss) after tax | 6.891 | (2.439) | (0.994) | (1.204) | (1.185) |
| Operating cash flow | (1.178) | (0.809) | (0.867) | (1.128) | (1.164) |
| Investing cash flow | (0.046) | (0.611) | (0.890) | (1.560) | (0.926) |
| Financing cash flow | 1.184 | 4.316 | 0.000 | 2.895 | 2.042 |
| Closing cash | 0.001 | 2.898 | 1.142 | 1.349 | 1.301 |
FY2021 includes the completion of a Deed of Company Arrangement (DOCA); that accounting profit is not mining revenue or operating cash generation.
Amounts are rounded to A$0.001m. FY2021 closing cash was A$1,216, not zero. FY2023 financing cash flow is explicitly nil.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 02
Exploration costs became the dominant asset
The growth in capitalised exploration is not interchangeable with cash spent. In FY2023, the acquisition cost and capitalised work also included accruals; the cash-flow statement therefore remains the appropriate measure for cash deployment.
Capitalised exploration within total assets
A$ million
Total assetsCapitalised exploration assets
AI-generated presentation · values from The asset base shifted towards capitalised exploration; no missing values plotted as zero.
Annual exploration cash payments
A$ million
Exploration cash payments
AI-generated presentation · values from Exploration cash spending; no missing values plotted as zero.
The asset base shifted towards capitalised exploration
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Total assets | 0.005 | 5.534 | 4.774 | 6.348 | 7.179 |
| Capitalised exploration assets | 0.000 | 2.360 | 3.266 | 4.611 | 5.475 |
| Total liabilities | 0.823 | 0.133 | 0.368 | 0.250 | 0.774 |
| Net assets / equity | (0.818) | 5.400 | 4.406 | 6.098 | 6.405 |
| Net current assets / (liabilities) | (0.818) | 2.991 | 0.918 | 1.191 | 1.218 |
Exploration assets are accumulated accounting costs, not cash, mineral-sale proceeds or a market valuation of resources.
FY2025 borrowings of A$0.576m are non-current. A duplicated subtotal label in the extraction is not used to reclassify them as current.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Exploration cash spending
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Exploration cash payments | (0.046) | (0.569) | (0.708) | (1.463) | (0.906) |
Cash payments do not equal the movement in capitalised exploration: acquisitions, accruals and other accounting entries can also change the asset balance.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 03
Two different reasons why profit is not cash
The DOCA and derivative gains dominate FY2021 earnings. FY2025 instead contains an R&D rebate that partly offsets an operating loss. Neither accounting item should be presented as mine sales.
Continuing-operations result
A$ million
Continuing-operations profit / (loss) after tax
AI-generated presentation · values from Earnings and cash flows through the recapitalisation; no missing values plotted as zero.
FY2021 profit was driven by restructuring gains
A$ million
| Metric | FY2021 |
|---|---|
| Operating loss | (0.776) |
| Net DOCA gain | 7.115 |
| Derivative fair-value gain | 0.553 |
| Continuing-operations profit | 6.891 |
The three preceding components reconcile to the reported profit. The positive gains are not operating cash receipts.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FY2025 operating loss and the R&D credit
A$ million
| Metric | FY2025 |
|---|---|
| Operating loss | (1.449) |
| ATO R&D rebate | 0.290 |
| Interest expense | (0.026) |
| Foreign-exchange gain | 0.000 |
| Loss after tax | (1.185) |
The R&D credit reduces the accounting loss; this income-statement table does not establish when the rebate was collected.
Foreign-exchange gain is A$18; it rounds to 0.000m but is not an underlying nil value.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 04
Convertible debt and later royalty funding have different terms
The FY2025 related-party convertible advances bear 10% interest and terminate on 1 October 2026. Their A$0.550m cash principal differs from the A$0.576m closing borrowing balance, which includes the accrued financing cost.
On 25 August 2025, the Queensland fund commitment comprised A$4m for a 2% future product royalty and A$0.5m in equity subject to shareholder approval. This is subsequent-event funding with economic obligations, not FY2025 cash or a free grant. The going-concern assessment remained dependent on its stated funding assumptions.
Reading the figures
- Only frozen annual extraction data was used. No raw annual report, new DB query, financial web research or MiniMax drafting. This published report has primary-author review, not independent audit.
- FY2021 restructuring gains and FY2022 recapitalisation expenses break comparability of statutory results. The analysis does not treat either year as a normal producing-mine earnings base.
- A mining-licence application, processing MOU, scoping study and resource estimate are not operating permits, binding sales receipts or actual mine production.
- The August 2025 royalty/equity commitment is kept outside June 2025 cash. Historical forecasts of cash sufficiency are not independently verified current outcomes.
- Values are rounded for readability. Small reported values such as the A$18 FX gain remain sourced nonzero observations even when the displayed million-dollar amount rounds to zero.
Annual-report source registry
- Ark Mines - 2021 Annual Report to shareholdersExisting annual extraction; comparative and restructuring boundaries retained.
- Ark Mines - 2022 Annual Report & Financial StatementsExisting annual extraction; comparative and restructuring boundaries retained.
- Ark Mines - Annual Report to shareholdersExisting annual extraction; comparative and restructuring boundaries retained.
- Ark Mines - Annual Report to shareholdersExisting annual extraction; comparative and restructuring boundaries retained.
- Ark Mines - Annual ReportExisting annual extraction; comparative and restructuring boundaries retained.
Prepared solely from the existing year-by-year extraction datasets. No raw annual-report body, PDF, new database lookup or financial web research was used. Review is against those stored extractions, not a new independent original-document audit.
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