Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the year ended 30 June 2025. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Review of going concern The Key Audit Matter How the matter was addressed in the audit During the year ended 30 June 2025 the Group recorded a net loss after tax of $4,151,446 (2024: Profit of $3,259,760); had net cash outflows from operating, investing and financing activities of $(7,420,297) (2024: outflows of $22,336,970); had cash and cash equivalents of $5,115,674 (2024: $12,322,890); and had a net working capital position of $6,726,659 (2024: $10,910,423). In assessing going concern of the Group, we note that current assets include $12,897,075 receivable from Sonangol. In our review we see this as significant in relation to the going concern assumption. Accordingly, we considered the appropriateness of the going concern assumptions. Our audit procedures included the following: • Obtained and reviewed management's cash flow forecasts for the next 12 months to evaluate whether the projected liquidity levels are sufficient to support the Group’s operations over this period; • Challenged management's assumptions and obtained explanations for any significant variances in the cash flow forecasts; • Tested the mechanical accuracy of the forecasting model used; and • Ensured appropriate disclosures related to going concern were included in the financial report. Farm-out arrangement - Cuba Block 9 The Key Audit Matter How the matter was addressed in the audit As at 30 June 2025 the Group recognised a receivable of $12,897,075 in relation to the Farmout arrangement from Sonangol. In addition, the Group received $42,695,821 in cash payments as proceeds of the Farm-out arrangement. This area is a key audit matter due to the significant judgement involved in determining the recoverability of these balances and its impact to going concern assumptions. During our audit, we analysed agreements in respect to the transactions, assessed internal reporting and substantiated transactions on a sample basis. We questioned management on treatment and challenged their assessment. Our audit included performing the following: • Assessed accounting treatment of significant transactions; • Reviewed disclosures within the financial report; • Reviewed mathematical accuracy of calculations; • Reviewed farm-out reporting and communication between Melbana and Sonongol; • Completed substantive tests of detail on expenditure incurred during the period; and • Reviewed subsequent receipts of receivables. 77 Melbana Energy Limited Annual Report 2025
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