funding of R$1 billion for the Jaguar Nickel Project with the funding to progress through BNDES’ further credit analysis and financial approval process. 4.10 Factors and Business Risks Affecting Future Business Performance The current and future activities of the Company are influenced by numerous factors, many of which are impacted by events external to the control of the Company. The following factors and business risks could have a material impact on the Company’s success in delivering its strategy: Access to Funding The Company’s ability to continue to develop the Jaguar Nickel Sulphide Project and successfully develop future projects is contingent on the ability to fund those projects from operating cash flows or through affordable debt and equity raisings. Ongoing exploration and future development of the Company’s projects is contingent on accessing appropriate funding solutions. Commodity Prices Commodity prices including nickel, iron ore and copper fluctuate according to changes in demand and supply. The Company is exposed to changes in the price of these commodities, which could affect the future profitability of the Company’s projects. Significant adverse movements in commodity prices could also affect the ability to raise debt and equity to fund future exploration and development of projects. Exchange Rates The Company is exposed to changes in the US dollar and the Brazilian real. Sales of most commodities are denominated in US dollars. The Company’s capital and operating costs will be primarily denominated in Brazilian real. Weakening of the Australian dollar may impact the feasibility of an exploration or development project being pursued by the Company and may reduce the Company’s ability to continue to undertake exploration and development activities in accordance with its business plans. Mineral Resources and Ore Reserves Risk Mineral resources and ore reserves are estimates, based on interpretations of geological data obtained from drill holes and other sampling techniques. Actual mineralisation or geological conditions may be different from those predicted. Market price fluctuations of nickel and iron ore as well as increased costs may render ore reserves unprofitable to develop at a particular site or sites for periods of time or may render ore reserves containing relatively lower grade mineralisation uneconomic. Any of these factors may require the Company to reduce its mineral resources and ore reserves, which could have a negative impact on the Company’s performance. Development Risk The continued development of the Jaguar project is subject to the successful completion of ongoing technical and engineering activities, including environmental, resource, mining, geotechnical, metallurgical, plant and non-plant infrastructure, permitting and environmental approvals, infrastructure design, and refinement of operating and capital cost estimates (“studiesâ€). There is a risk, that the outcomes of these studies may require changes to the project scope, design, capital expenditure, operating cost assumptions and/or development schedule. Any such changes could adversely impact project economics, delay development, increase funding requirements, or result in the Company deferring or modifying the development plan. Dependence on Key Personnel A number of key personnel are important to attaining the business goals of the Company. One or more of these key employees could leave their employment, and this may adversely affect the ability of the Company to conduct its business and, accordingly, affect the financial performance of the Company and its share price. Difficulties attracting and retaining such personnel may adversely affect the ability of the Company to conduct its business. The Company mitigates this risk by implementing market-based remuneration arrangements which include long and short term incentives. Geopolitical Uncertainty An increasing level of geopolitical risk, including political instability, regulatory change, trade restrictions and diplomatic tensions and resource nationalism may disrupt global supply chains, impact market access and adversely affect investor confidence. As a nickel development project, the Company is exposed to changes in global battery supply chains and critical minerals policy settings. This risk may impact on the Company’s ability to raise funding when required, both for working capital purposes and for the development of its projects. The effect of changing trade policy settings by countries that are 34 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS ANNUAL REPORT 2025
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