FY2021
Exploration funded by equity
Share cash receipts supported Mozambique exploration, while going-concern uncertainty was already disclosed. Prior-year exploration comparatives had been restated for omitted capitalised costs.
ASX: MRQ · Five-year financial review
(ASX: MRQ) MRG Metals Limited Financial Review - FY2021~25
MRG Metals’ five-year story is a shift from funding Mozambique exploration directly toward a partner-funded Corridor Sands development arrangement. The most striking FY2025 balance-sheet change is a reclassification: A$6.419m of exploration assets moved into held for sale. That is very different from the assets vanishing, a mine producing cash, or a completed sale.
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 closing cash
A$0.194m
Not the much larger current-asset total.
Exploration held for sale
A$6.419m
Classification, not realised sale proceeds.
FY2025 total loss
A$0.939m
Includes A$0.406m VAT impairment.
FY2025 share receipts
A$0.801m
Cash received before capital costs.
Five years in context
The Group remained an explorer/developer rather than a mineral-sales business. A PEA assessed potential Corridor Sands development, while later joint-venture agreements changed who would fund the work. Study economics and production milestones are not actual operating results.
The June 2025 exploration balance needs two locations on the balance sheet: remaining E&E and assets held for sale. Legal transfer to an entity in which MRG expected an initial 30% interest was still conditional; accounting classification and completion are not the same event.
Cash receipts from equity and management fees supported the Group, but recurring outflows left a small June cash balance. The going-concern uncertainty remained disclosed even after directors cited later funding and expenditure flexibility.
Events behind the numbers
FY2022
Study and drilling funding
A January placement supported Corridor Sands PEA/scoping work and further drilling; financing receipts did not fully offset annual cash outflows.
FY2023
PEA, not production
The Corridor Central/South study assessed potential viability with a stated +30–35% accuracy range. Marruca costs were impaired following an application to surrender the tenement.
FY2024
Sinowin agreement and WA entry
The binding Sinowin/SLC JVA was signed in June. Lake Hope Lithium also entered the Group, adding Western Australian tenements with staged consideration.
FY2025
Held-for-sale classification
JV conditions triggered discontinued-operation and held-for-sale presentation. Tax assessment and licence transfers still separated that accounting change from legal completion.
FINANCIAL REVIEW / 01
Separate the result from the change in reporting boundary
The Group loss includes both continuing activities and the discontinued HMS operation. The VAT impairment explains a material part of FY2025’s result; the large exploration transfer is a different accounting event. Management fees are income, but not sales of mineral production.
Total Group loss after tax
A$ million
Total Group loss after tax
AI-generated presentation · values from Selected income-statement lines and total Group loss; no missing values plotted as zero.
Selected income-statement lines and total Group loss
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Interest income | 0.001 | 0.001 | 0.006 | 0.008 | 0.006 |
| Employee benefit expense | (0.265) | (0.244) | (0.231) | (0.233) | (0.268) |
| Consultants expense | (0.006) | (0.006) | (0.006) | (0.025) | (0.126) |
| Administration expense, including depreciation where re-presented | (0.396) | (0.462) | (0.515) | (0.452) | (0.223) |
| Total Group loss after tax | (0.666) | (0.702) | (0.847) | (0.847) | (0.939) |
FY2022 administration uses the FY2023 comparative A$461,970, combining A$442,168 administration and A$19,802 depreciation formerly presented separately.
The FY2025 statement separates continuing from discontinued operations. Interest and cost rows above follow the main statement; the total-loss row includes both. The separate table below supplies the discontinued-operation result, not an additional Group loss.
MRG describes itself as having no operating revenue. Interest and JV management fees are not mineral-product sales. Selected costs do not sum to the full result.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Continuing and discontinued operations: the FY2025 presentation
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Loss from continuing operations | (0.860) | (0.726) |
| JV management fees — discontinued operation | 0.013 | 0.193 |
| VAT-receivable impairment — discontinued operation | 0.000 | (0.406) |
| Profit / (loss) from discontinued operations | 0.013 | (0.213) |
FY2025 also has A$103,557 consultant expense and equal reimbursement in discontinued operations, offsetting each other. The A$406,220 impairment concerns VAT receivable, not the A$6.419m exploration asset transferred to held for sale.
FY2024 continuing loss is A$860,328 in the primary statement, which reconciles with A$13,274 discontinued profit to total loss A$847,054. A duplicate extracted line gives A$860,238; that A$90 conflict is disclosed rather than silently merged.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 02
Where the money came from—and where it went
Equity receipts funded activity throughout the period. In later years, management-fee cash and the FY2024 JV funds on trust also matter. Exploration is inside investing cash flow, so it must not be deducted a second time from the combined cash totals.
Cash flows by activity
A$ million
Operating cash flowInvesting cash flowFinancing cash flow
AI-generated presentation · values from Cash flows and the balance left at year-end; no missing values plotted as zero.
Cash at each June year-end
A$ million
Closing cash
AI-generated presentation · values from Cash flows and the balance left at year-end; no missing values plotted as zero.
Exploration cash payments
A$ million
Exploration and evaluation — investing cash
AI-generated presentation · values from Cash uses and equity receipts behind the totals; no missing values plotted as zero.
Cash flows and the balance left at year-end
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Operating cash flow | (0.702) | (0.668) | (0.934) | (0.731) | (0.614) |
| Investing cash flow | (1.305) | (1.334) | (0.694) | (0.568) | (0.341) |
| Financing cash flow | 2.896 | 1.406 | 1.185 | 1.084 | 0.790 |
| Net cash movement before exchange effects | 0.889 | (0.596) | (0.442) | (0.215) | (0.166) |
| Closing cash | 1.611 | 1.018 | 0.575 | 0.360 | 0.194 |
Exploration payments shown below are already inside investing cash flow; adding them again would double-count expenditure. Net movement in FY2022 excludes the separate positive A$3,242 exchange effect.
FY2024 financing includes A$74,974 JV funds on trust as well as share receipts less transaction costs. It is not all equity proceeds.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Cash uses and equity receipts behind the totals
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Suppliers and employees — operating cash | (0.704) | (0.669) | (0.940) | (0.784) | (0.814) |
| Exploration and evaluation — investing cash | (1.222) | (1.309) | (0.688) | (0.590) | (0.341) |
| Plant and equipment — investing cash | (0.083) | (0.003) | (0.005) | (0.002) | 0.000 |
| Gross share-issue cash receipts | 2.936 | 1.651 | 1.213 | 1.040 | 0.801 |
| Capital transaction costs paid | (0.040) | (0.245) | (0.028) | (0.031) | (0.011) |
These are cash-statement receipts, not announced placement sizes or accounting share-capital movements. Management-fee cash receipts were A$44,984 in FY2024 and A$193,424 in FY2025; the FY2024 P&L fee was only A$13,274. Receipt and earnings dates must not be interchanged.
Project funding by a JV partner is not automatically unrestricted cash at the listed company. Subsequent option-offer receipts are excluded from these June balances.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 03
Current assets are not all liquid cash
About A$6.419m moved from non-current exploration to current held-for-sale assets. Looking only at non-current E&E makes the portfolio appear to shrink drastically; looking only at current assets makes liquidity appear to surge. Neither reading captures the economic meaning of the reclassification.
The earlier Swedish Norrliden asset had already been fully impaired while held for sale. It is a separate history, not the FY2025 Mozambique transfer. The remaining Australian E&E reflects the Lake Hope acquisition and exploration additions.
Exploration carrying value across the classification change
A$ million
Exploration within non-current assetsExploration classified as held for sale
AI-generated presentation · values from The exploration asset moved—it did not disappear; no missing values plotted as zero.
Consolidated financial position—not the parent-only note
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Other receivables / prepayments | 0.214 | 0.321 | 0.362 | 0.403 | 0.067 |
| Total current assets, including held-for-sale assets in FY2025 | 1.825 | 1.339 | 0.937 | 0.763 | 6.679 |
| Plant and equipment | 0.083 | 0.072 | 0.052 | 0.029 | 0.007 |
| Non-current exploration and evaluation | 3.781 | 5.177 | 5.795 | 6.416 | 0.400 |
| Total assets | 5.689 | 6.611 | 6.807 | 7.208 | 7.087 |
| Total liabilities—all current trade and other payables | 0.127 | 0.206 | 0.060 | 0.224 | 0.169 |
| Issued share capital (FY2023 re-presented) | 26.355 | 27.762 | 28.639 | 29.722 | 30.562 |
| Total equity | 5.562 | 6.405 | 6.748 | 6.984 | 6.918 |
FY2025 current assets are dominated by A$6.419m held-for-sale exploration assets, not cash available for paying bills. Cash plus other receivables/prepayments is only A$260,598.
The FY2024 comparative re-presents FY2023 issued capital as A$28.639m and reserves A$0.313m instead of the earlier A$28.951m and nil reserve. Total equity is unchanged; this review uses the later classification, not an inferred capital repayment.
The non-current exploration row has a classification break in FY2025. Its decline alone is not evidence of depletion, impairment or a completed cash sale.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
The exploration asset moved—it did not disappear
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Exploration within non-current assets | 6.416 | 0.400 |
| Exploration classified as held for sale | 0.000 | 6.419 |
| Combined accounting carrying amount (calculated FY2025) | 6.416 | 6.819 |
The combined amount is an accounting comparison, not a project valuation or a prediction of sale proceeds. Five Mozambique licences were classified as held for sale after JV conditions precedent were satisfied on 10 September 2024; legal transfers and tax assessment were still pending at year-end.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FY2025 exploration movement by geography
A$ million
| Metric | FY2025 |
|---|---|
| Mozambique opening balance | 6.337 |
| Mozambique other exploration costs | 0.334 |
| Transfer out of E&E into held-for-sale assets | (6.419) |
| Mozambique remaining E&E | 0.252 |
| Australia opening balance | 0.080 |
| Australia acquisition costs | 0.060 |
| Australia other exploration costs | 0.009 |
| Australia closing E&E | 0.148 |
Opening E&E A$6,416,262 plus additions A$402,833 less the A$6,418,804 transfer leaves A$400,291. Additions combine Mozambique exploration and Australian acquisition/exploration amounts, not just cash payments. The transfer itself is not an impairment charge.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 04
What the JV does—and does not—establish
Sinowin took control of field operations in early 2025 and was described as funding HMS licensing, permitting, exploration and early works. At reporting time licence-transfer approval was delayed, despite an estimated US$1m already applied by Sinowin. That US-dollar partner expenditure is not added to MRG’s A$ cash or share receipts.
The agreement’s ownership and concentrate-production stages are contractual milestones, not achieved production. The July 2023 LANQI MOU was an earlier conditional proposal with due diligence and a conditional share purchase, not the June 2024 Sinowin contract.
After June 2025 the option entitlement offer raised A$500,646 in August and the A$317,309 shortfall was placed in September. Those receipts are dated separately. The auditor nevertheless identified material going-concern uncertainty without modifying the opinion in that respect; directors retained the going-concern basis.
Reading the figures
- A$ millions except expressly identified US-dollar JV terms. No currency conversion or project valuation is introduced.
- FY2025 continuing/discontinued presentation and held-for-sale classification are explicit boundaries; legal transfer was still pending at the balance date.
- FY2022 administration and FY2023 issued capital use later re-presented comparatives, with the original classification differences disclosed.
- A duplicate FY2024 continuing-loss line differs by A$90; the selected main-statement amount reconciles to total loss and discontinued profit.
- No study production, forecast cash flow or contractual milestone is treated as realised mining output.
- Prepared from existing year-by-year extraction records only. No raw-source retrieval, database query, financial web research or MiniMax call. GPT review against saved extractions; not an independent original-document audit.
Annual-report source registry
- MRG Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- MRG Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- MRG Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- MRG Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- MRG Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
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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