S2 Resources (S2R) H2 2025 earnings summary

Executive summary

• Faced challenging equity capital markets, but benefited from a strong gold bull market post-year end, with base metals remaining suppressed due to geopolitical and economic uncertainty.

• Maintained focus on gold and base metals exploration, prioritizing high-impact targets and capital conservation, including asset monetization and a modest financing to progress projects.

• Key projects advanced include Warraweena (NSW), Jillewarra (WA), West Murchison (WA), Glenlogan (NSW), and Greater Fosterville (VIC), with systematic exploration and drilling programs underway or planned.

• Completed the sale of Finnish subsidiary Sakumpu Exploration Oy, resulting in a significant shareholding in Valkea Resources and a gain on discontinued operations.

Financial highlights

• Net loss for the year was $2.59 million, a significant improvement from the prior year's $8.19 million loss, primarily due to a $6.19 million gain on the sale of discontinued operations.

• Loss from continuing operations was $8.78 million, compared to $7.72 million in the previous year.

• Exploration expenditure expensed totaled $4.25 million, mainly related to Australian projects.

• Cash and cash equivalents at year-end were $3.79 million, down from $5.32 million the previous year.

• Share-based payments expense was $1.07 million.

Outlook and guidance

• Ongoing exploration activities in Australia will continue, with a focus on advancing high-priority targets and seeking new value-adding opportunities.

• Funds raised from recent placements and share purchase plan will support exploration and working capital.