8 Icon Energy Annual Report 2025 Directors' Report for the year ended 30 June 2025 MATERIAL BUSINESS RISKS Icon Energy Limited is exposed to a number of material risks that could significantly affect the Company’s financial condition, operations, and prospects: Regulatory Risk Obtaining the necessary approvals, licenses, and permits depends on the discretion of government authorities. Our business would suffer if our applications for exploration licenses are denied. We must also comply with specific ongoing and periodic conditions to maintain our mining and exploration tenements; failure to meet these conditions could negatively impact our operations and financial health. Currently Icon is waiting for the approval of application for PL as required under the Act. Future Capital Raisings and Financial Risk Our ongoing operations may necessitate significant additional financing beyond previous capital raises. We will need further funding to bring the Keppel Project into production. If equity financing is used, it would dilute existing shareholders and might occur at prices lower than the current market value. If we pursue debt financing, it may come with restrictive covenants that could hinder our operational flexibility and business strategy. Suspension and Listing Risk Icon Energy’s securities have remained under suspension from trading on the ASX due to the uncertainty surrounding ATP 855’s renewal. While the ASX has confirmed allowable suspension until January 2026, further delays without resolution may affect investor confidence and access to capital. Operational and Project Execution Risk Icon’s ability to realise value from ATP 855 and the proposed PL-1144 is dependent on the successful execution of its development plans. This includes the delivery of key operational milestones such as the planned seismic acquisition and well drilling program. As with all early-stage resource developments, there is a risk that geological, technical or logistical challenges may arise, which could modify the development timeline, or affect project costs or gas volumes. CORPORATE STRATEGIES AND FUTURE DEVELOPMENTS Icon Energy will continue to focus on the renewal of ATP 855 under a PL application for the tenement. Subject to regulatory approval, the Company intends to implement its Initial Development Plan in stages. In addition, Icon is actively evaluating opportunities to strengthen its funding position through strategic partnerships and cost-effective operations. The overall strategy is to responsibly transition from an exploration company to a gas producer. FINANCIAL POSITION The consolidated loss after tax for the Company and its controlled entities for the financial year ended 30 June 2025 was $1,078,503 (2024: $1,156,056 loss). ROUNDING OF AMOUNTS In accordance with ASIC Corporations (Rounding in Financial/ Directors’ Reports) Instrument 2016/191, amounts in the Directors’ Report and Financial Report have been rounded off to the nearest dollar unless otherwise indicated.
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