Key points from SER's response to ASX query

Strategic Energy Resources Limited (ASX: $SER) has responded to ASX's query regarding its half-year report for the period ended 31 December 2023. The company confirmed that, in the Directors' opinion, the financial statements and notes comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Additionally, the Directors believe that the report gives a true and fair view of SER's financial performance and position for the half-year period.

Executive commentary on valuation of investment in Ionic Industries Limited

The Directors of SER explained that the carrying value of its investment in Ionic Industries Limited is considered fully recoverable and no impairment on this investment is needed as of the half-year reporting date. This decision is based on the developments in Ionic during the year, including capital raisings completed at prices significantly higher than the current book value. The Board expressed confidence in the valuation adopted and emphasized that the investment in Ionic is not a core asset to SER's business as an exploration Company, nor is its going concern dependent on it.

Summary of SER's position and outlook

SER intends to continue monitoring its investment in Ionic and assess the available information to form a view of the valuation going forward. The company proposes to update the value of its investment in Ionic, adopting a conservative approach to valuation if uncertainty over Ionic's value remains. Despite the material uncertainty related to going concern, the Directors are confident that SER's financial condition is sufficient to warrant continued listing on ASX as required under Listing Rule 12.2. The company has a strong track record of raising capital and holds liquid investments which it can liquidate as and when required. SER confirmed its compliance with the Listing Rules and stated that the responses to the ASX query have been authorized by the Board.