Accelerate Resources Limited
ABN 33 617 821 771
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CORPORATE
Accelerate Resources Limited
ABN: 33 617 821 771
Directors
Mr Richard Hill
Non-Executive Chairman
Ms Yaxi Zhan
Managing Director
Dr Stephen Bodon
Executive Director - Technical
Mr Grant Mooney
Non-Executive Director
Company Secretary
Ms Yaxi Zhan
Registered and Principal Office
Unit 4, 16 Ord Street
West Perth, WA 6005
Telephone: (08) 6246 9663
Website
www.ax8.com.au
Securities Exchange
Australian Securities Exchange (ASX Limited)
Home Exchange Perth
Securities
Code: AX8
Share Registry
Advanced Share Registry
110 Stirling Hwy
Nedlands WA 6009
Australian Telephone: 1300 113 258
International Telephone: (618) 9389 8033
Website: advancedshare.com.au
Auditor
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco, WA 6008
Telephone: +61 8 9426 0666
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
TABLE OF CONTENTS
CHAIRMAN'S LETTER
REPORT ON OPERATIONS
DIRECTORS' REPORT
AUDITOR'S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS' DECLARATION
INDEPENDENT AUDITOR'S REPORT
ASX ADDITIONAL INFORMATION
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CHAIRMAN’S LETTER
Dear Shareholder,
I am delighted to present to you Accelerate Resource’s (Accelerate) Annual Report for the year ending 30 June
2023.
Over the past year, Accelerate has identified supply disruptions and metal shortfalls in the manganese and
lithium markets and has continued to execute its high-grade manganese and lithium exploration strategies to
help meet the future demand from the battery and steel markets.
Importantly, these strategies are focused on the Western Australian Pilbara region, which is world-renowned
for providing reliable, high quality and ethically sourced materials to the markets of the world.
At the Woodie Woodie North Manganese project, the Company completed a total of ~7,000m drilling
campaign this financial year with exceptional results.
Drilling from Area 42 indicates broad, high-grade manganese zones with low iron intersections at shallow
depths indicating the potential for substantial manganese resources to be delineated. We have also
discovered new corridors of extensive and persistently mineralised trends of outcropping high grade
manganese at surface which will be drilled over the coming year.
As of the reporting date, the exploration program at Woodie Woodie is still ongoing, and we are on track to
deliver an Inferred Mineral Resource Estimate for the Woodie Woodie North Manganese project by December
2023.
As a key part of the Company’s critical minerals strategy, we continue to look for points of difference to add
value to the traditional manganese business.
This year the Company has entered into a binding Heads of Agreement with RedoxBlox, Inc, a USA-based
energy storage technology company that owns the rights to the patented zero-carbon thermochemical energy
storage system based on unique manganese and magnesium-based components.
The collaboration with RedoxBlox will provide AX8 with the opportunity to test its products for the potential
supply of high-value manganese for a novel and disruptive manganese-based energy storage technology.
We have also leant into our lithium strategy and recently entered into binding agreements to acquire the
high-grade Karratha Lithium Projects, comprising the Prinsep Lithium Project (100%) – an area of significant
potential with a series of ‘walk-up’ drill targets – along with the Mt Sholl Project (100%), Mt Sholl East Project
(75%) and Roebourne South Project (75%).
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Consolidated Annual Report for the Year Ended 30 June 2023
This transformational acquisition strongly positions the Company in the emerging Roebourne-Karratha
lithium belt – which also plays host to Azure Minerals Ltd.’s exciting Andover lithium discovery and within
20km of the Karratha mining centre and its world-class infrastructure and supply chain.
In step with our critical minerals strategy, the Company will continue to consider M&A opportunities that can
complement our Karratha lithium Projects in the west Pilbara in the West Pilbara together with the expansion
of its existing lithium footprint in the East Pilbara. In the meantime we look forward to reporting on an
aggressive lithium exploration campaign over this coming year.
On behalf of myself and my fellow directors, I wish to thank our shareholders for the support they have shown
the Company during 2023. In particular to those existing shareholders that have continued to show their
support through the recent capital raising and to those shareholders that have recently joined our register.
We look forward to reporting on more Accelerate successes in 2024.
Yours sincerely,
Richard Hill
Chairman
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
REPORT ON OPERATIONS
During 2022-2023, Accelerate Resources Limited (“Accelerate” or “the Company”) has focused on its
exploration projects located in Western Australia, which comprise (Figure 1):
• Karratha Lithium Projects;
• East Pilbara and Windi Lithium projects;
• Garden Rock Lithium Project in the Murchison region, and;
• Woodie Woodie North Manganese Project.
Figure 1. Location of exploration projects
Lithium Projects
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Consolidated Annual Report for the Year Ended 30 June 2023
Karratha Lithium Projects
Accelerate entered into binding Agreements in October 2023 to acquire the Karratha Lithium Projects, which
include (Figure 2):
• Prinsep Lithium Project (AX8 100%);
• Mt Sholl Project (AX8 100%);
• Mt Sholl East Project (AX8 75%), and;
• Roebourne South Project (AX8 75%).
The Karratha Lithium Projects are located within the emerging 40km long hard-rock lithium belt between the
towns of Karratha and Roebourne in the West Pilbara and comprise circa 90km2 of prospective ground. This
belt hosts the Andover discovery (ASX:AZS MCap ~ $1.2Bn ) with a number of other ASX listed companies
actively exploring the belt (Figure 2).
Figure 2. Location of the Karratha Lithium Projects.
The Prinsep Lithium Project is the most advanced opportunity. “Walk up” drill targets have been identified
with access to mining services, workforce and major infrastructure in the nearby mining centres of Karratha
and Dampier.
Recent field work by the Company identified two parallel zones of spodumene-rich, lithium-bearing pegmatite
systems spanning the entire 2km width of the Prinsep tenement area. Several surface samples contain coarse
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
spodumene crystals, with preliminary rock chip assays returning up to 1.87% Li2O from the Southern
Pegmatite System and 1.29% Li2O from the Northern Pegmatite System (Figure 3 and Table 1). These
mineralised zones represent a new lithium discovery 15km from Karratha that have yet to be drill tested.
Based on satellite image interpretation, the Southern Pegmatite System is less than 1km along strike from the
Kobe lithium project (GreenTech Metals).
Figure 3. Outcropping pegmatites and rock chip sample results from the Prinsep Lithium Project
Table 1: Significant assay results from rock chip sampling of outcropping pegmatites at Prinsep.
Rock chip sample ID
AA319
AA312
AA323
AA321
AA317
AA326
Easting
480725
480244
480595
480654
480722
480670
Northing
7694124
7694089
7694306
7694328
7694106
7694344
% Li2O
1.87
1.55
1.29
1.05
1.03
1.01
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Previous exploration in the region, including the other project areas, has concentrated on gold, nickel and
platinum group elements (PGE). Historical lithium exploration work has been very limited to negligible within
the Roebourne South, Mt Sholl and Mt Sholl East tenement areas. However, recent initial field work by
Accelerate during the due diligence process confirmed the presence of outcropping pegmatites within mafic
schists at Mt Sholl East.
Future field work is planned to systematically assess and delineate drill targets across the projects. A detailed
drone photogrammetric survey is planned to assist with detailed mapping of the Prinsep and Mt Sholl East
Project areas to identify pegmatite targets for rock chip sampling and mineralogical based geochemical
fingerprinting to define and prioritise drill-ready targets. Drilling will be conducted as soon as possible
following regulatory and heritage clearance approvals.
See ASX Announcement dated 6 October 2023 for further details, including acquisition terms and conditions.
East Pilbara Lithium Projects
The East Pilbara Lithium Project is strategically situated within a region of active lithium exploration and
discovery, encompassing the following prominent deposits (Figure 4): Global Lithium Resources' Archer
deposit (ASX:GL1), Tabba Tabba Lithium Project (ASX:WC8), Wodgina Lithium Project (ASX:MIN), and the
Pilgangoora Lithium mine (ASX:PLS).
Historical data was collated during the first half of 2022, and whilst there has been significant historical
exploration for diamonds, limited work focusing on lithium or lithium-related pathfinder geochemistry has
been recorded.
Several new exploration targets were identified following an encouraging initial reconnaissance sampling
program and detailed photo interpretation during 2022. These initial targets were followed up with fieldwork
along station tracks with ground traverses to sites of special interest in November 2022. Only about 35% of
the prospective zone within E45/6279 and <5% within E45/6278 were visited, with initial encouraging
observations comprising:
• Discovery of four larger bodies of coalesced, overlapping, stacked pegmatite and aplitic veins and
pods at different locations, with an additional 14 smaller pegmatites
• Numerous small individual pegmatite veins and pods
Field mapping and sampling of numerous pegmatite bodies and mixed aplitic to pegmatitic rocks in the Mount
Creek and Sandy Creek tenements was completed in early 2023. Results for lithium and rare earth elements
(REE) returned only background values apart from one tin (Sn) value of 33.7ppm and three cerium (Ce) assays
over 100ppm (maximum 150ppm) from Mount Creek. The team also mapped five prominent structural
features up to 4 km in strike length at Sandy Creek, which host several phases of aplite, pegmatite and quartz-
carbonate veining considered prospective for lithium and REE mineralisation and with some gold potential
(see ASX Announcement dated 13 March 2023).
Post 30 June 2023, the Company has successfully expanded its lithium exploration project footprint to 395km2
with the application for four new tenements (E45/6416, E45/6604, E45/6615 and E45/6634), two of which
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Consolidated Annual Report for the Year Ended 30 June 2023
(E45/6416 and E45/6634) are subject to competing applications by other companies, with final ownership to
be decided by ballot (Figure 4; see ASX Announcement dated 5 July 2023).
Figure 4. Location of the Pilbara Lithium Project.
Satellite image interpretation has identified several zones of quartzose felsic rocks that are prospective for
lithium bearing pegmatites in two of the tenements (E45/6604 and E45/6615; Figure 5). Further target
generation and fieldwork is planned, including rock chip sampling for mineralogical based geochemical
fingerprinting to rank and prioritise pegmatite targets. In parallel to the field work, the Company will also fast-
track the granting of tenements and associated permitting to advance exploration activities (see ASX
Announcement dated 27 July 2023).
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Consolidated Annual Report for the Year Ended 30 June 2023
Figure 5. Location of quartzose felsic rocks interpreted from satellite imagery that are possibly prospective
for lithium bearing pegmatites.
Windi Lithium Project
The new Windi tenement application covers a portion of the 5-9km wide target zone along the SE edge of the
Bonney Downs Monzogranite, which is recognised as being fertile for Li-Ta mineralisation. Figure 6 shows the
known Li-Ta occurrences (source GSWA, MINEDEX data), the outline of the fertile Bonney Downs
Monzogranite and the 4km wide target zone (5-9km from the granite margin) that represents the most likely
zone to encounter Li-bearing pegmatites. The tenement covers nearly 10km of the prospective zone, which
represents a substantial target (see ASX Announcement dated 6 September 2023).
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Consolidated Annual Report for the Year Ended 30 June 2023
Figure 6. Location of the Windi Lithium Project area showing the lithium exploration target zone and extent
of the Bonney Downs Monzogranite.
Murchison Lithium Projects
Garden Rock Lithium Project
Accelerate's Garden Rock Lithium Project in the Murchison Region is located approximately 7km southeast of
the town of Cue (Figure 7). The area is well known for gold occurrences in the greenstones, however it remains
underexplored for pegmatite-hosted lithium mineralisation despite the existence of possible late granitoid
intrusions.
Initial indications from limited GSWA open-file geochemical data suggests that elevated lithium values within
the Comet project area may be spatially associated with a late K-feldspar porphyry intrusion in the Garden
Rock Monzogranite (Figure 7). This association may suggest that the late porphyritic phase of the
monzogranite could be the source of the elevated lithium in the area (see ASX Announcement dated 6
September 2023).
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Figure 7. Garden Rock Lithium Project area showing location of elevated lithium values and extent of the
Garden Rock Monzogranite.
Woodie Woodie North Manganese Project
The Woodie Woodie North Manganese Project is located 120km east of Marble Bar, 250km from Port
Hedland, and approximately 70km north of the Woodie Woodie Manganese Mine (Figure 8). The project
consists of two granted exploration licenses (E45/5978 and E45/5854) and two applications (E45/6508 and
E45/6603) covering a total area of 307km2 within the Woodie Woodie Manganese Corridor, which is
considered highly prospective for manganese deposits (Figure 9).
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Figure 8. Woodie Woodie North Manganese Project Location
Figure 9. East Pilbara Manganese Projects location and tenements.
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Consolidated Annual Report for the Year Ended 30 June 2023
Previous exploration in the northern area of the Woodie Woodie project, i.e. the Barra South area (Figure 11),
included surface sampling, RC drilling (27,478m, 343 drill holes), geological mapping, aerial photography and
photogrammetry, limited gravity and IP surveys, airborne magnetic and EM surveys, surface EM re-
processing, metallurgical test work, mineralogical analysis, 3D geological modelling and resource analysis,
Aboriginal heritage and ethnological surveys.
Further south in the Braeside West area of the project (i.e. Gum Creek, Parsons Creek and Area 42 in Figure
11), limited historical exploration drilling, geological mapping and sampling of manganese outcrops was
completed. The area is partially overlapped with VTEM geophysics, gravity and IP geophysical surveys.
Exploration Activities by Accelerate: Woodie Woodie North Manganese Project
The Company completed a total of four drilling campaigns over five key prospective Areas summarised in
Table 2 below.
Table 2. Summary of Phases 1 to 4 RC drilling for the period 1 July 2022 to 31 August 2023.
Area
Area 1
Area 3
Area 4
Area 5
Area 42
Total
Drillholes
23
16
14
7
103
163
Metres
1,039
903
669
384
5,681
8,676
The Phase 1 RC drilling program was completed during the latter half of 2022 and was followed up by a second
phase of drilling (Phase 2) focusing on Area 42. A regional heliborne mapping program was completed in
January 2023 (Figure 10), resulting in the recognition of five fault-bounded corridors hosting manganese
mineralisation (Figure 11). A further two phases of exploration drilling (Phases 3 and 4) were completed by
the end of August 2023.
Figure 10. Heli-supported mapping program in the Gum Creek Corridor at Area 51 showing extensive
outcropping manganese for more than 200m along the ridge.
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Consolidated Annual Report for the Year Ended 30 June 2023
The Phase 1 drilling program focused on Barra North Area 1, Barra South Areas 3 and 4, and Area 42 (Figure
11), and was designed to provide an initial indication of the extent of manganese mineralisation and potential
for extensions. The maiden drilling program resulted in the discovery of a well-developed manganese
enriched zone localised along a significant NNW trending fault in drill hole WNRC017 at Area 42 (see ASX
Announcements dated 25 August and 11 October 2022). Significant results from the drilling included:
• Area 3 – northern strike extension of the Barra South deposit:
o WNRC011 – 17 m @ 22% Mn & 15.7% Fe from 16m, incl. 9m @ 25.3% Mn from 15m
• Area 42 – mineralisation along a prominent NNW trending fault:
o WNRC017 – 6m @ 17.3% & 18.2% Fe from 13m
o WNRC017 – 5m @ 18.6% Mn & 21.9% Fe from 40m
o WNRC017 – 5m @ 19.4% Mn & 30.2% Fe from 82m
Figure 11. Location of Woodie Woodie North Manganese Project and the five manganese corridors (shaded
in grey) and exploration targets therein.
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Consolidated Annual Report for the Year Ended 30 June 2023
The Phase 2 drilling program followed up on results from the Phase 1 drilling to further define the extent of
near-surface, high-grade manganese mineralisation and the deeper feeder zone identified from discovery
holes WNRC017 and WNRC015 in Area 42 (Figure 12). Drilling was completed in November 2022. Significant
results from the drilling included:
• Chris’s Ridge
o WNRC038 – 7m @ 31.4% Mn (19% Fe) from surface, incl. 1m @ 42.2% Mn
• Dale’s Patch:
o WNRC054 – 5m @ 33.7% Mn (13.4% Fe) from surface, incl. 1m @ 50.8% Mn from 1m
o WNRC059 – 8m @ 30.8% Mn (2.7% Fe) from 13 m, incl. 1m @ 50.7% Mn from 18m
• Nathan’s Flat
o WNRC063 – 9m @ 22% Mn (8.7% Fe) from 4m, incl. 2m @ 34% Mn (5.8% Fe) from 9 m
o WNRC074 – 6m @ 28.4% Mn (9.9% Fe) from 3m, incl. 3m @ 37.4% Mn (9.1% Fe) from 5m
• Dirk’s Valley
o WNRC076 – 8m @ 18.3% Mn (2.2% Fe) from 14m
A geological cross section of the Dale’s Patch prospect showing significant intercepts is shown in Figure 13.
See ASX Announcement dated 9 February 2023 for further details.
Figure 12. Location of prospects in Area 42.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Figure 13. Long section through the Dale's Patch prospect at Area 42 showing significant intercepts.
AX8 commenced a third phase (Phase 3) of exploration and resource definition drilling in May 2023. The
Phase 3 program was completed in June 2023 and comprised extensional and infill drilling with nominal
spacings of 20m to 40m targeting strike and depth extensions of the manganese mineralisation at Area 42.
A total of 40 holes for 2,308m of RC drilling was completed, with 17 holes intersecting significant visual
manganese mineralisation (Figure 14). Significant drilling results included:
• Dale’s Patch:
o WNRC080 – 12m @ 26.8% Mn (6.6% Fe) from 11m, incl. 6m @ 39.8% Mn from 12m
o WNRC081 – 10m @ 18.7% Mn (18.6% Fe) from 29m
• Nathan’s Flat:
o WNRC091 – 8m @ 23.9% Mn (11.5% Fe) from 3m
• Drew’s Find:
o WNRC109 – 3m @ 12% Mn (1.9% Fe) from 36m
• Drape’s Hill:
o WNRC115 – 10m @ 20.2% Mn (9.8% Fe) from 8m
Geological cross sections showing significant intercepts are shown in Figures 15 and 16.
Further details can be found in ASX Announcement dated 7 August 2023.
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Consolidated Annual Report for the Year Ended 30 June 2023
Figure 14. Photo of RC chips from drill hole WNRC089 at Nathan’s Flat in Area 42.
Figure 15. Interpretive cross section of Dale’s Patch showing significant intercepts.
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Consolidated Annual Report for the Year Ended 30 June 2023
Figure 16. Interpretive cross section of Nathan’s Flat showing significant intercepts.
Post 30 June 2023, a fourth phase of drilling (Phase 4) was completed by the end of August 2023 and
comprised extensional and resource definition drilling at Barra North and South (Areas 1, 3 and 4) and Area
42. Infill drilling at Area 5 in the Gum Creek Corridor (Figure 11) was completed to assess the resource
potential. A total of 2,105m of RC drilling (45 holes) was completed with significant extensions of
mineralisation confirmed in the Barra South Corridor. Significant results from the drilling included:
• Area 42 – Chris's Ridge:
o WNRC162 – 12m @ 25.7% Mn (12.6% Fe) from surface, incl. 4m @ 33.7% Mn from 5m
• Barra South – Area 3:
o WNRC140 – 6m @ 22.8% Mn (32.7% Fe) from 16m
o WNRC145 – 16m @ 22% Mn (11.5% Fe) from 25m, incl. 6m @ 32.8% Mn from 27m
o WNRC149 – 11m @ 18.6 Mn (17.4% Fe) from 24m
o WNRC146 – 18m @ 14.6% Mn (24.9% Fe) from 32m
A geological cross section of Barra South – Area 3 showing significant intercepts is shown in Figure 17.
Further details can be found in ASX Announcement dated 4 October 2023.
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Consolidated Annual Report for the Year Ended 30 June 2023
Figure 17. Interpretive cross section of Barra South - Area 3 showing significant intercepts.
Results from the Phase 1 to 4 drilling campaign and the historical drilling database will be utilised for the
development of JORC-2012 Mineral Resource Estimates (MREs) at Barra North (Area 1) and South (Areas 3
and 4), and Area 42. The MREs are scheduled to be completed by 2023 year end (see ASX Announcement
dated 16 May 2023).
High Purity Manganese Sulphate Monohydrate (HPMSM) test work program
Accelerate’s Critical Minerals strategy seeks to generate additional value from the Woodie Woodie
manganese resources through development of higher value products that deliver superior returns to the
Company and shareholders.
On 5 April 2023, the Company announced that its High Purity Manganese Sulphate Monohydrate (HPMSM)
test program had achieved results of 99.9% manganese sulphate purity using samples from Area 42 in the
Woodie Woodie North Manganese Project.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
For further information please refer to ASX announcement dated 5 April 2023.
Corporate Activities
Capital Raising
2023 Capital raising
On 6 October 2023, the Company announced that it had received firm commitments to raise $3.6 million
(before costs) from a range of professional and sophisticated investors by way of a placement. Proceeds from
the placement, together with existing cash, will be applied primarily to exploration activities within the newly
acquired, highly prospective Karratha Lithium Projects, as well as progressing the East Pilbara Lithium Project
and Woodie Woodie North Manganese Project. General working capital and costs of the placement will also
be included.
On 11 November 2022, the Company announced that it had received firm commitments to raise $3 million
(before costs) from sophisticated investors via a placement. Proceeds from the Placement had been applied
primarily to exploration at the Company’s Woodie Woodie North Manganese Project and as well as
progressing the Lithium strategy.
Sale of Currie Rose Shares
On 14 April 2023, the Company announced the sale of its 8,333,333 shares in Currie Rose, the Company
received ~$450,000 in net proceeds.
Junior Minerals Exploration Incentive (JMEI) Credits
The Australian Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme encourages
investment in mineral exploration companies that carry out “Greenfields” mineral exploration in Australia, by
allowing such companies to generate a tax incentive by choosing to give up a portion of their losses from
“Greenfields” mineral exploration expenditure for distribution to Australian residents who acquired new
shares during the relevant eligibility period. The shares must be equity interests for the purposes of debt and
equity tax rules.
In January 2023, the Company distributed JMEI credit of $220,000 as Tax credit to the Company’s eligible
shareholders.
Successful application on the WA Government Co-funded Exploration Incentive Scheme (EIS)
In May 2023 the Company received confirmation being one of the successful applicants of the WA
Government Co-funded Exploration Incentive Scheme (EIS) with up to $150,000 co-funding to enhance the
planned diamond drilling program at Woodie Woodie North Manganese project.
The co-funding from the WA Government EIS program is also a strong endorsement of the Company’s
exploration work at the Woodie Woodie North project.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Accelerate enters partnership with US-based energy storage technology group RedoxBlox
As announced on 14 March 2023, the Company has entered into a binding Heads of Agreement with
RedoxBlox, Inc. to investigate strategic co-operation opportunities for the ongoing material supply,
commercialisation and deployment of RedoxBlox’s proprietary manganese-based thermochemical energy
storage technology using manganese products from the Company’s Woodie Woodie North Project.
The collaboration is structured through a phased approach, with initial efforts focused on AX8’s testing and
supply of manganese materials and providing results of comminution and metallurgical test work to enable
RedoxBlox to complete the necessary product qualification test work in the US. RedoxBlox will provide
updates on the results of its ongoing demonstration plant test work and any resulting changes in its
manganese and magnesium product specifications and volumes.
TAMBELLUP KAOLIN PROJECT, WA
In 2021, Accelerate executed a binding agreement with Vytas Resources Pty Ltd ("Vytas") and completed the
sale of Tambellup project.
Vytas is a technology Material company with a strong focus on Green Hydrogen, and Ultra High Purity Quartz
(UHPQ).
Vytas seeks to capitalise on this opportunity in the market by producing 99.999% SiO2 (5N), 99.998% SiO2
(4N8), 99.997% SiO2 (4N7) and 99.99% SiO2 (4N) products. Vytas is working through a process with a number
of different off-take parties for off-take and project funding.
In August 2023, Vytas successfully completed a $1.5mil seed raise from sophisticated inverters and institution
investors. The Company intends to be listed on ASX listed in H1 2024.
Accelerate Resources currently holds 27,120,000 shares, which is equal to a ~27% interest in Vytas pre-IPO.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
DIRECTOR’S REPORT
The Directors of Accelerate Resources Limited (the ‘Company’) and its controlled entities (the ‘Group’) present
their Report for the financial year ended 30 June 2023.
DIRECTORS
The following were Directors of the Company at any time during the reporting period and up to the date of
this report, unless otherwise indicated, were Directors for the entire period.
Director
Mr Richard Hill
Ms Yaxi Zhan
Mr Grant Mooney
Dr Stephen Bodon*
Title
Non-Executive Director
Managing Director
Non-Executive Director
Executive Director - Technical
Appointment Date
3 July 2020
7 March 2017
1 June 2017
1 February 2022
Resignation Date
-
-
-
-
* appointed Non-Executive Director 1 February 2022, appointed Executive Director – Technical 1 August 2023
COMPANY SECRETARY
Ms Yaxi Zhan – appointed 2 March 2023
Ms Deborah Ho - resigned 2 March 2023
PRINCIPAL ACTIVITIES
The Group is an Australian mineral exploration company, focusing on Manganese, lithium and other minerals
exploration.
RESULTS
The loss of the Group for the financial year ended 30 June 2023 was $2,040,114 (2022: $1,489,738).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There are no significant changes in the state of affairs of the Group.
EVENTS SUBSEQUENT TO BALANCE DATE
On 3 July 2023, the Company announced its Non-Executive Director Dr Steve Bodon took up a new role as the
Company’s Executive Director – Technical, effective 1 August 2023.
On 25 August 2023, the Company issued 1,000,000 fully paid ordinary shares as consideration for the Public
Relation Services provided by SparkPlus.
On 2 September 2023, the Company announced the expiry of 5,000,000 options exercisable at $0.06.
On 6 October 2023, the Company announced a placement by issuing up to 180,500,000 new fully paid
ordinary shares at an issue price of $0.02 per share to raise $3.6 million.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
There are no other matters or circumstances that have arisen since 30 June 2022 to the date of this report
that have significantly affected, or may significantly affect the Group’s operations, the results of those
operations, or the Group’s state of affairs in future financial years.
LIKELY DEVELOPMENTS
Information on likely developments in the operations of the Group and the expected results of operations
have not been included in this report because the Directors believe it would be likely to result in unreasonable
prejudice to the Group.
DIVIDEND
No dividends have been paid or declared during the financial year ended 30 June 2023, nor have the Directors
recommended that any dividends be paid.
ENVIRONMENTAL REGULATION
The Directors believe that the Group has, in all material respects, complied with all particular and significant
environmental regulations relevant to its operations.
PARTICULARS OF DIRECTORS AND COMPANY SECRETARY
CURRENT DIRECTORS
Richard Hill
Non-Executive Chairman (Appointed Non-Executive Director 3 July 2020,
appointed Non-Executive Chairman 20 November 2020)
Qualifications and Experience Mr Hill is a qualified geologist and solicitor with over 25 years’ experience
in the resources sector. In addition to his corporate, commercial and
fundraising roles, Mr Hill has practical geological experience in a range of
commodities worldwide
Interest in Shares and Options
9,132,653 Ordinary Shares
3,000,000 options exercisable at $0.0957, expiring on 27 November 2024
1,500,000 options exercisable at $0.0593, expiring on 16 November 2024
Directorships held in other
listed entities in the past three
years
Non-Executive Chairman at New World Resources Limited (31 October
2017 to the present)
Non-Executive Director at Sky Metals Ltd (20 June 2019 to the present)
Yaxi Zhan
Managing Director and Company Secretary (Appointed Managing
Director 7 March 2017 and Company Secretary 2 March 2023)
Qualifications and Experience Ms Zhan has over 16 years of experience in the resource industry. She has
in capital raising, mergers and acquisitions and project
worked
23
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
development with Sinosteel, Norilsk Nickel and within the Australian listed
junior exploration sector.
Interest in Shares and Options 4,810,009 Ordinary Shares
3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024
2,000,000 options exercisable at $0.0593, expiring on 16 November 2024
Directorships held in other
listed entities in the past three
years
Nil
Stephen Bodon
Executive Director - Technical (Appointed Non-Executive Director 1
February 2022, appointed Executive Director - Technical 1 August 2023)
Qualifications and Experience Dr Bodon has a PhD in geology with 30 years’ experience in mining and
upstream oil & gas. He is a successful senior business leader with broad
in exploration, production and business
management experience
development. He previously held senior leadership roles for a number of
large international organisations, such as Anglo American and Sasol and is
currently General Manager Higginsville Operations for Karora Resources.
Interest in Shares and Options 1,000,000 Options exercisable at $0.059, expiring on 1 February 2025
Directorships held in other
listed entities in the past three
years
Nil
Grant Mooney
Non-Executive Director (Appointed Non-Executive Chairman 1 June
2017, appointed Non-Executive Director 20 November 2020)
Qualifications and Experience Mr Mooney is the principal of Perth-based corporate advisory firm
Mooney & Partners, specialising in corporate compliance administration
to public companies. He has extensive experience in the areas of
corporate and project management, capital raisings, mergers and
acquisitions and corporate governance.
Interest in Shares and Options 2,016,115 Ordinary Shares
3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024
1,000,000 options exercisable at $0.0593, expiring on 16 November 2024
24
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Directorships held in other
listed entities in the past three
years
Non-Executive Chairman at Riedel Resources Limited (31 October 2018 to
the present)
Non-Executive Chairman at Aurora Labs Limited (25 March 2020 to the
present)
Non-Executive Director at Carnegie Clean Energy Limited (19 February
2008 to the present)
Non-Executive Director at Gibb River Diamonds Limited (13 October 2008
to the present)
Non-Executive Director at Talga Group Ltd (20 February 2014 to the
present)
Non-Executive Director at Greenstone Resources limited (29 November
2002 to 19 August 2022)
Non-Executive Director at SRJ Technologies Limited (2 June 2020 to 17
January 2023)
Company Secretary (Resigned 2 March 2023)
Deborah Ho
Qualifications and Experience Ms Ho has over six years of experience in company secretarial, corporate
compliance and financial accounting matters. She has acted as Company
Secretary to a number of ASX listed and private companies. She holds a
Bachelor of Commerce from Curtin University and is an Associate Member of
the Governance Institute of Australia.
DIRECTORS' MEETINGS
The Directors attendances at Board meetings held during the year were:
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Board Meetings
Number eligible to attend
6
6
6
6
Number attended
6
6
6
6
The Company does not have any remuneration, nomination or audit committees, these functions are
performed by the Board.
The Board also approved four (4) circular resolutions during the year ended 30 June 2023 which were signed
by all Directors of the Company.
25
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each key management personnel of the Group,
and for the executives receiving the highest remuneration.
REMUNERATION POLICY
The remuneration policy of Accelerate Resources Limited has been designed to align key management
personnel objectives with shareholder and business objectives by providing a fixed remuneration component
that provides cost effective services to the Group at an early stage of its development. The Board of Accelerate
Resources Limited believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best key management personnel to run and manage the Group, as well as create goal congruence
between directors, executives and shareholders.
The Board’s policy for determining the nature and amount of remuneration for key management personnel
of the Group is as follows:
•
•
•
The remuneration policy, setting the terms and conditions for the key management personnel, was
developed and approved by the Board.
All key management personnel receive a base salary or fee appropriate to the skills and
responsibility of the role.
The Board reviews key management personnel packages annually by reference to the Group’s
performance, executive performance and comparable information from industry sectors.
The performance of key management personnel is measured against criteria agreed annually with each
executive and is based predominantly on the forecast development of the Group’s projects. Any bonuses or
incentives must be linked to predetermined performance criteria. The Board may, however, exercise its
discretion in relation to approving incentives, bonuses and options. Any changes must be justified by
reference to measurable performance criteria. The policy is designed to attract the highest calibre of
executives and reward them for performance that results in long-term growth in shareholder wealth.
Key management personnel are also entitled to participate in the employee share and option arrangements.
All remuneration paid to key management personnel is valued at the cost to the Group and expensed. Shares
given to key management personnel are valued as the difference between the market price of those shares
and the amount paid by key management personnel. Options are valued using the Black-Scholes
methodology.
The Board policy is to remunerate Non-Executive Directors at market rates for time, commitment and
responsibilities. The Board determines payments to the Non-Executive Directors and reviews their
remuneration annually, based on market practice, duties and accountability. Independent external advice is
sought when required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors
is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are
not linked to the performance of the Group. However, to align directors’ interests with shareholder interests,
the Directors are encouraged to hold shares in the Company and are able to participate in the employee
option plan.
26
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
PERFORMANCE-BASED REMUNERATION
It is the Group’s intention when appropriate to include performance-based remuneration as a component of
management remuneration, and this was not deemed necessary in the year under review.
COMPANY PERFORMANCE, SHAREHOLDER WEALTH AND DIRECTOR AND EXECUTIVE REMUNERATION
The following table shows gross income, profits (losses) and dividends for the last 5 years as a listed entity
(incorporated on 7 March 2017), as well as the share price at the end of the respective financial years. As
highlighted above, the Group currently does offer any variable remuneration incentive plans or bonus
schemes to Directors and, as such, there are no performance related links to the existing remuneration
policies.
Revenue
Loss after income tax
EBITDA
EBIT
Share price at year-end
Basic loss per share (cents per
share)
Dividends paid
2023
$
-
(2,308,322)
(2,297,535)
(2,308,322)
0.02
(0.59)
2022
$
1,500
(1,221,530)
(1,219,327)
(1,221,530)
0.031
(0.66)
2021
$
125,535
(3,374,055)
(3,368,028)
(3,374,055)
0.031
(2.37)
2020
$
66,827
(1,505,847)
(1,487,631)
(1,514,134)
0.023
(2.66)
2019
$
46,036
(1,715,102)
(1,711,883)
(1,713,998)
0.03
(3.60)
-
-
-
-
-
KEY MANAGEMENT PERSONNEL REMUNERATION POLICY
The Board's policy for determining the nature and amount of remuneration key management for the Group
is as follows: The remuneration structure for key management personnel is based on a number of factors,
including length of service, particular experience and skills of the individual concerned, and overall
performance of the Group. The contracts for service between the Company and key management personnel
are on a continuing basis. Upon retirement key management personnel are paid employee benefit
entitlements accrued to date of retirement.
SERVICE AGREEMENTS
The following Directors had contracts in place with the Company during the financial year as detailed below:
Richard Hill, Non-Executive Director (Appointed Non-Executive Director 3 July 2020, appointed Non-Executive
Chairman 20 November 2020)
• Confirmation of Appointment dated 3 July 2020 with no termination date;
o 4 million shares @ deemed $0.023 per share in lieu of cash for services to 31 December 2020.
o Fees of $40,000 per annum from 1 January 2021, increased to $60,000 per annum (from 1 March
2021).
o 2 million performance rights vesting upon weighted average price of share equals or exceeds
$0.05 for 15 consecutive trading days.
o 2 million performance rights vesting upon ASX announcement of acquisition of new exploration
project with significant exploration and/or exploitation potential.
27
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
o There will be no payment upon termination.
Yaxi Zhan, Managing Director and Company Secretary (Appointed Managing Director 7 March 2017 and
Company Secretary 2 March 2023)
•
Confirmation of Appointment dated 7 March 2017 with no termination date;
o Fees of $150,000 per annum (post-IPO), amended to $110,000 per annum (1 May 2019 – 29
February 2020); amended to $150,000 per annum (from 1 March 2020); amended to
$180,000 per annum (from September 2021); amended to $216,000 per annum (from March
2023); amended to $220,000 per annum (from June 2023).
o There will be no payment upon termination other than the statutory requirements as per the
employment agreement.
Grant Mooney, Non-Executive Director (Appointed Non-Executive Chairman 1 June 2017, appointed Non-
Executive Director 20 November 2020)
•
Confirmation of Appointment dated 1 June 2017 with no termination date;
o Director fees of $50,000 per annum (post-IPO); amended to $30,000 per annum (1 May 2019
– 29 February 2020); amended to $50,000 per annum (from 1 March 2020); amended to
$45,000 (from 20 November 2020);
o There will be no payment upon termination.
Stephen Bodon, Executive Director – Technical (Appointed Non-Executive Director 1 February 2022,
appointed Executive Director - Technical 1 August 2023)
•
Confirmation of Appointment dated 1 February 2022 with no termination date;
o Fees of $45,000 per annum; amended to $300,000 per annum (from August 2023).
o There will be no payment upon termination other than the statutory requirements as per the
employment agreement.
28
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
DETAILS OF REMUNERATION
Compensation of Key Management Personnel Remuneration
Short-term Benefits
Post-
Employment
Benefits
Long-term
Benefits
Share-Based Payments
Cash, salary
and fees
$
Annual leave
$
Superannuation
$
Long Service
Leave
$
Shares
$
Options /
Performance
Rights
$
Total
$
FY2023
Directors
Richard Hill
Yaxi Zhan1
Stephen Bodon 2
Grant Mooney
FY2022
Directors
Richard Hill
Yaxi Zhan1
Stephen Bodon 2
Grant Mooney
151,563
192,333
46,100
51,000
440,996
100,625
175,000
18,750
45,000
339,375
-
-
-
-
-
-
-
-
-
-
-
20,195
4,841
4,725
29,761
-
17,500
1,875
4,500
23,875
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,638
55,517
20,276
27,758
145,189
151,563
212,528
50,941
55,725
470,757
142,263
248,017
40,901
77,258
508,439
1 Appointed Managing Director on 7 March 2017 and took on additional role as the Company Secretary on 2 March 2023
2 Appointed Non-Executive Director on 1 February 2022, appointed Executive Director – Technical on 1 August 2023
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Directors
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Fixed
At Risk - STI
At Risk - LTI
2023
2022
2023
2022
2023
2022
100%
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash bonuses granted as compensation for the current financial year
No cash bonuses were granted during the year ended 2023 (2022: nil).
29
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Other transactions with related parties
Directors
Director’s fees paid to Braeside Minerals Pty Ltd, a company in which
Richard Hill is a director
Consulting fees paid to Braeside Minerals Pty Ltd, a company in which
Richard Hill is a director
Consulting fees paid to Mooney & Partners Pty Ltd, a company in which
Grant Mooney is a director
2023
$
2022
$
60,000
60,000
91,563
40,625
6,000
-
Loans from key management personnel
As at 30 June 2023, there were no outstanding amounts due to key management personnel (2022: nil).
Use of remuneration consultants
During the financial year ended 30 June 2023, the Group did not engage the services of an independent
remuneration consultant to review its remuneration for Directors, key management personnel and other
senior executives.
Voting and comments made at the company's Annual General Meeting ('AGM')
At the 2022 Annual General Meeting, 100% of the votes received supported the adoption of the remuneration
report for the year ended 30 June 2022. The Company did not receive any specific feedback at the AGM
regarding its remuneration practices.
SHARE-BASED PAYMENTS
This section only refers to those shares and options issued as part of remuneration. As a result, they may not
indicate all shares and options held by a Director or other Key Management Personnel.
Shares
No shares were issued to Directors as part of compensation during the year ended 30 June 2023 (2022: nil).
Options
No options were issued to Directors as part of compensation during the year ended 30 June 2023.
During the year ended 30 June 2022, the Company issued 4,500,000 unlisted options exercisable at $0.0593
each, expiring 16 November 2024 to Directors of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the inputs
to the model used for the valuation of the options:
30
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Grant Date
16/11/2021
Share Price
at Grant
Date
$0.048
The share-based payment expense recognised in relation to options over ordinary shares granted, and the
value of options exercised and lapsed for directors as part of compensation during the year ended 30 June
2022 are set out below:
Risk-free
Interest
Rate
1.02%
Fair Value
per Option
$0.0278
Expected
Volatility
100.0%
Exercise
Price
$0.0593
Expiry Date
16/11/2024
Share-based payment
expense of options
granted during the
year
$
Value of options
exercised during
the year
$
Value of
options lapsed
during the year
$
Remuneration
consisting of
options for the
year 2022
%
41,638
55,517
27,758
-
-
-
-
-
-
29%
22%
36%
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
During the year ended 30 June 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059
each, expiring 1 February 2025 to a Director of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the inputs
to the model used for the valuation of the options:
Grant Date
01/02/2022
Expiry Date
01/02/2025
Exercise
Price
$0.059
Share Price
at Grant
Date
$0.038
Expected
Volatility
100.0%
Risk-free
Interest
Rate
1.23%
Fair Value
per Option
$0.0203
The share-based payment expense recognised in relation to options over ordinary shares granted, and the
value of options exercised and lapsed for directors as part of compensation during the year ended 30 June
2022 are set out below:
Share-based payment
expense of options
granted during the
year
$
Value of options
exercised during
the year
$
Value of
options lapsed
during the year
$
Remuneration
consisting of
options for the
year 2022
%
Directors
Stephen Bodon
No options held by Directors of the Company were exercised during the year ended 30 June 2023 (2022: nil).
20,276
50%
-
-
Performance Rights
No Director performance rights were granted, exercised, sold or lapsed during the year ended 30 June 2023
(2022: nil).
31
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
DIRECTORS’ INTERESTS
Shareholding
The number of shares in the Company held during the financial year by each director and other members of
key management personnel of the Group, including their personally related parties, is set out below:
Opening
Balance No.
Granted as
Compensation
No.
Additions
No.
Disposals /
Other
No.
Closing Balance
No.
30 June 2023
Directors
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Total
9,132,653
4,810,009
-
2,016,115
15,958,777
-
-
-
-
-
-
-
-
-
-
Opening
Balance No.
Granted as
Compensation
No.
Additions
No.
30 June 2022
Directors
Richard Hill
8,577,097
Yaxi Zhan
4,254,453
Stephen Bodon
-
Grant Mooney
1,460,559
Total
14,292,109
1 Shares issued for participation in the Company’s Placement raising
555,5561
555,5561
-
555,5561
1,666,668
-
-
-
-
-
Disposals /
Other
No.
-
-
-
-
-
-
-
-
-
-
9,132,653
4,810,009
-
2,016,115
15,958,777
Closing Balance
No.
9,132,653
4,810,009
-
2,016,115
15,958,777
Option Holding
The following table discloses the movement in Directors’ and Key Management Personnel’s Options during
the year.
Opening
Balance
No.
4,500,000
5,000,000
1,000,000
4,000,000
14,500,000
30 June 2023
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Total
Options
Granted
No.
Options
Exercised
No.
-
-
-
-
-
-
-
-
-
-
Options
Lapsed Closing Balance
No.
-
-
-
-
-
No.
4,500,000
5,000,000
1,000,000
4,000,000
14,500,000
Vested
During the
Year
No.
Vested and
Exercisable
at 30 June 23
No.
4,500,000
-
5,000,000
-
1,000,000
-
4,000,000
-
- 14,500,000
Not Vested
at 30 June 23
No.
-
-
-
-
-
32
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
Opening
Balance
No.
Options
Granted
No.
Options
Exercised
No.
3,000,000 1,500,000
3,000,000 2,000,000
- 1,000,000
3,000,000 1,000,000
9,000,000 5,500,000
-
-
-
-
-
Options
Lapsed Closing Balance
No.
-
-
-
-
-
No.
4,500,000
5,000,000
1,000,000
4,000,000
14,500,000
Vested
During the
Year
No.
Vested and
Exercisable
at 30 June 22
No.
4,500,000
-
5,000,000
-
1,000,000
-
-
4,000,000
- 14,500,000
Not Vested
at 30 June 22
No.
-
-
-
-
-
30 June 2022
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Total
The following table discloses the movement in Directors’ and Key Management Personnel’s Performance
Rights during the year.
Performance
Rights
Granted
No.
Performance
Rights
Exercised
No.
Opening
Balance
No.
Performance
Rights Lapsed
No.
Closing
Balance
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Performance
Rights
Granted
No.
Performance
Rights
Exercised
No.
Opening
Balance
No.
Performance
Rights Lapsed
No.
Closing
Balance
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
End of Remuneration Report
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 22
No.
Not
Vested
at 30 June
22
No.
-
-
-
-
-
-
-
-
-
-
-
-
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 21
No.
Not
Vested
at 30 June
21
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30 June 2023
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Total
30 June 2022
Richard Hill
Yaxi Zhan
Stephen Bodon
Grant Mooney
Total
33
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
SHARES UNDER OPTION
Unissued ordinary shares of the Company at the date of this report are as follows:
Grant Date
23/11/2020
16/11/2021
01/02/2022
22/04/2022
28/12/2022
27/01/2023
27/01/2023
Expiry Date
27/11/2024
16/11/2024
01/02/2025
22/10/2024
28/12/2024
27/01/2025
01/12/2024
Exercise Price
$0.0957
$0.0593
$0.059
$0.10
$0.05
$0.05
$0.05
Number under option
9,000,000
4,500,000
1,000,000
10,000,000
58,571,376
2,250,000
1,000,000
At the date of this report, there were 1,500,000 performance rights under issue.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of the company or of any other body corporate.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group or the Group, or to intervene in any proceedings to which the Group is a
party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section
237 of the Corporations Act 2001.
DIRECTORS’ INDEMNITIES
The Group has indemnified the directors and executives of the Group for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Group paid a premium in respect of a contract to insure the directors and
executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
AUDITOR’S INDEMNITIES
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the Group or any related entity against a liability incurred by the auditor. During the financial year,
the Group has not paid a premium in respect of a contract to insure the auditor of the Group or any related
entity.
CORPORATE GOVERNANCE
The Group’s Appendix 4G is released to ASX on the same day the Annual Report is released. Accelerate
Resources Limited’s Corporate Governance Statement, and the Company’s Policies, Charters and Procedures,
can be all found on the Company’s website.
34
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NON-AUDIT SERVICES
There were no non-audit services provided during the current and previous financial year by the auditor. The
Board has established certain procedures to ensure that the provision of non-audit services are compatible
with, and do not compromise the external auditor's independence requirements of the Corporations Act 2001
for the following reasons:
• All non-audit services have been reviewed and approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
• None of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
management or decision-making capacity for the Group, acting as advocate for the Group or jointly
sharing economic risks and rewards.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF AUDITORS
There are no officers of the company who are former partners of Hall Chadwick WA Audit Pty Ltd .
AUDITOR INDEPENDENCE
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001
is set out immediately after this directors' report.
AUDITOR
Hall Chadwick WA Audit Pty Ltd were appointed auditors in accordance with section 327 of the Corporations
Act 2001, to perform the year-end audit, replacing RSM Australia Partners.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Yaxi Zhan
Managing Director
29 September 2023
35
To the Board of Directors,
AUDITOR’S
CORPORATIONS ACT 2001
INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
As lead audit director for the audit of the financial statements of Accelerate Resources Limited for the financial
year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
CHRIS NICOLOFF CA
Director
Dated this 29th day of September 2023
Perth, Western Australia
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the year ended 30 June 2023
Revenue
Other income
Expenses
Corporate and professional expenses
Director and employee benefits
Administration expenses
Other expenses
Depreciation
Exploration expenditure
Impairment of exploration expenditure
Research and development
Share-based payments expenses
Loss before income tax expense
Income tax expense
Loss before other comprehensive income
Other comprehensive income
Items that will not be subsequently
reclassified to profit or loss:
Changes in fair value of financial assets –
fair value OCI
Consolidated
2023
$
Consolidated
2022
$
Note
-
-
(293,266)
(444,803)
(190,122)
(212,164)
(10,787)
(51,020)
(1,000,000)
(33,612)
(72,548)
(2,308,322)
-
(2,308,322)
1,500
1,500
(234,081)
(341,987)
(244,496)
(136,599)
(2,203)
(118,440)
-
-
(145,224)
(1,221,530)
-
(1,221,530)
5
14
7
268,208
(268,208)
Total comprehensive loss
(2,040,114)
(1,489,738)
Earnings per share for (loss) from
continuing operations attributable to the
ordinary equity holders of the Group
Basic and diluted earnings per share (cents)
13
(0.59)
(0.66)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
37
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
ASSETS
Current Assets
Cash and cash equivalents
Other current assets
Asset held for sale
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure
Other non-current assets
Plant and equipment
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provision
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
2023
$
Consolidated
2022
$
Note
3
4
5
5
4
6
8
9
10
11
2,037,164
153,444
-
2,190,608
4,499,391
1,236,261
108,660
5,844,312
2,313,957
112,351
1,000,000
3,426,308
2,121,929
1,131,223
11,426
3,264,578
8,034,920
6,690,886
320,768
100,464
421,232
266,167
63,857
330,024
421,232
330,024
7,613,688
6,360,862
16,169,011
2,795,555
(11,350,878)
7,613,688
12,948,619
2,454,799
(9,042,556)
6,360,862
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
38
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
Issued
Capital
$
Note
Accumulated
Reserves
$
Losses Total Equity
$
$
9,090,949
2,367,354
(7,821,026)
3,637,277
-
-
-
-
(268,208)
(1,221,530)
-
(1,221,530)
(268,208)
(268,208)
(1,221,530)
(1,489,738)
Consolidated
Balance as at 1 July 2021
Loss after income tax
Other comprehensive income
Total comprehensive loss for
the period
Shares issued
Share issue costs
Consideration shares issued
Performance rights issued
Options issued
Balance as at 30 June 2022
10
10,11
5,10
11
11
4,044,000
(186,330)
-
-
-
12,948,619
-
-
34
145,189
210,430
2,454,799
-
-
-
-
-
(9,042,556)
4,044,000
(186,330)
34
145,189
210,430
6,360,862
Consolidated
Loss after income tax
Other comprehensive income
Total comprehensive loss for
the period
-
-
-
-
268,208
(2,308,322)
-
(2,308,322)
268,208
268,208
(2,308,322)
(2,040,114)
Shares issued
Share issue costs
Performance rights issued
Director and employee options
issued
Options issued
Balance as at 30 June 2023
10
10,11
11
11
11
3,428,400
(208,008)
-
-
-
-
14,500
17,612
-
-
-
-
3,428,400
(208,008)
14,500
17,612
-
16,169,011
40,436
2,795,555
-
(11,350,878)
40,436
7,613,688
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
39
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
Consolidated
2023
$
Consolidated
2022
$
Note
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Other income received
Cash flow boost
Net cash (outflows) from operating activities
15
Cash Flows from Investing Activities
Purchase of plant and equipment
Payments for exploration and evaluation expenditure
Amounts advanced to external party
Cash acquired from asset acquisition
Proceeds from sale of investment
Net cash (outflows) from investing activities
6
4
5
Cash Flows from Financing Activities
Proceeds from issue of shares
Capital raising cost
Net cash inflow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial year
Cash and cash equivalents at the end of the financial
year
(1,116,974)
-
-
-
(1,116,974)
(108,021)
(2,291,543)
-
-
447,753
(1,951,811)
(793,885)
-
1,500
-
(792,385)
(8,175)
(1,031,593)
-
-
-
(1,039,768)
3,000,000
(208,008)
2,791,992
3,100,000
(186,330)
2,913,670
(276,793)
1,081,517
2,313,957
1,232,440
3
2,037,164
2,313,957
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
40
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements and notes represent those of Accelerate Resources Limited (the
‘Company’) and its controlled entities (‘Group’). The financial report was authorised for issue by the Board
on 29 September 2023. The principal accounting policies adopted in the preparation of the financial
statements are set out below. These policies have been consistently applied to all the years presented,
unless otherwise stated.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also
comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board ('IASB').
In accordance with the Corporations Act 2001, these financial statements present the results of the Group.
Supplementary information about the Company is disclosed in Note 21: Parent Entity Disclosures.
Except for cash flow information, the financial report has been prepared on an accruals basis and is based
on historical costs, modified where applicable, by the measurement at fair value of selected financial
assets and financial liabilities. Cost is based on the fair values of the consideration given in exchange for
assets.
The financial statements have been presented in Australian dollars (AUD), which is the Group’s functional
and presentation currency.
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As disclosed in the financial statements, the Group incurred a loss of $2,040,114 (30 June 2022:
$1,489,738) and had net cash outflows from operating and investing activities of $1,116,974 (30 June
2022: $792,385) and $1,951,811 (30 June 2022: $1,039,768) respectively for the year ended 30 June 2023.
As at that date, the Group had net current assets of $1,769,376 (30 June 2022: $3,096,284). The ability of
the Group to continue as a going concern is principally dependent upon the ability of the Group to secure
funds by raising additional capital from equity markets and managing cash flows in line with available
funds.
41
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Management have prepared a cash flow forecast, which indicates that the Group will have sufficient cash
flows to meet its commitments and working capital requirements for the 12 month period from the date
of this report. The ability of the Group to continue as a going concern is dependent on the success of the
fund raising and the Group generating cashflows from operating activities and managing costs in line with
available funds.
Based on the cash flow forecasts and other factors referred to above, the Directors are satisfied that the
going concern basis of preparation is appropriate. In particular, given the Group’s history of raising capital
to date, the Directors are confident of the Group’s ability to raise additional funds as and when they are
required.
Should the Group not achieve the matters set out above, there is material uncertainty as to whether the
Group will continue as a going concern and therefore whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts stated in the financial report.
The full year financial report does not contain any adjustments relating to the recoverability and
classification of recorded assets or to the amounts or classification of recorded assets or liabilities that
might be necessary should the Group not be able to continue as a going concern.
The Directors believe that it is reasonably foreseeable that the Group will continue as a going concern
and that it is appropriate to adopt the going concern basis in the preparation of the financial report after
consideration of the following factors:
• The Group has the ability to curtail administrative, discretionary exploration and overhead cash
outflows as and when required.
New or amended Accounting Standards and Interpretations adopted
During the year ended 30 June 2023, the Directors have reviewed all of the new and revised Standards
and Interpretations issued by the AASB that are relevant to the Group and effective for the year-end
reporting period beginning on or after 1 July 2022. Any new or amended standards and interpretations
that are not yet mandatory have not been early adopted.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30
June 2023. None of the new or amended Accounting Standards and Interpretations, most relevant to the
Group, are expected to have a material impact on the Group’s financial statements.
42
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
a) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the consolidated statement of cash flows presentation purposes, cash and cash equivalents also
includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of
financial position.
b) Other Assets
Other receivables are recognised at amortised cost, less any provision for impairment.
c) Asset Held for Sale
Assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continued use. They are measured at the lower of their carrying amount
and fair value less costs of disposal. For assets to be classified as held for sale, they must be available for
immediate sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the fair value less costs of
disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of an asset,
but not in excess of any cumulative impairment loss previously recognised.
Assets are not depreciated or amortised while they are classified as held for sale. Interest and other
expenses attributable to the liabilities of assets held for sale continue to be recognised.
Assets classified as held for sale are presented separately on the face of the consolidated statement of
financial position, in current assets.
d) Exploration and Evaluation Assets
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through
the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the period in
which the decision to abandon the area is made. When production commences, the accumulated costs
for the relevant area of interest are amortised over the life of the area according to the rate of depletion
of the economically recoverable reserves.
43
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and
are included in the costs of that stage. Site restoration costs include the dismantling and removal of
mining plant, equipment and building structures, waste removal, and rehabilitation of the site in
accordance with clauses of the mining permits. Such costs have been determined using estimates of
future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly, the costs have been determined on the basis
that the restoration will be completed within one period of abandoning the site.
e) Plant and Equipment
Recognition and measurement
Items of plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds
from disposal with the carrying amount of plant and equipment and is recognised net within other income
/ other expenses in profit or loss.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Depreciation is recognised in profit or
loss on a diminishing value basis over the estimated useful lives of each part of an item of plant and
equipment, since this most closely reflects the expected pattern of consumption of the future economic
benefits embodied in the asset.
The estimated useful lives for the current and comparative periods are as follows:
Office equipment 3 -10 years
Field equipment 5 years
Computer equipment 3 years
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
44
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Non-Financial Assets
f)
At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there
is any indication that those assets have suffered an impairment loss. An asset is impaired if objective
evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the
loss event had a negative effect on the estimated future cash flows of that asset that can be estimated
reliably. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss. When a subsequent event causes the amount of impairment
loss to decrease, the decrease in impairment loss is reversed through profit or loss.
g) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the entity prior to the end of the
financial period and which are unpaid. Due to their short-term nature they are measured at amortised
cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of
recognition.
h) Leases
The Group as a lessee
For any new contracts entered into on or after 1 July 2022 the Group considers whether a contract is, or
contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an
asset (the underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which are
whether:
•
The contract contains an identified asset, which is either explicitly identified in the contract or
implicitly specified by being identified at the time the asset is made available to the Group
The Group has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract
The Group has the right to direct the use of the identified asset throughout the period of use. The
Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used
throughout the period of use.
•
•
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the
statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs
to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of
the lease commencement date (net of any incentives received).
45
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group
also assesses the right-of-use asset for impairment when such indicators exist. At the commencement
date, the Group measures the lease liability at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group’s
incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments
(including in substance fixed), variable payments based on an index or rate, amounts expected to be
payable under a residual value guarantee and payments arising from options reasonably certain to be
exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-
substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these
are recognised as an expense in profit or loss on a straight-line basis over the lease term. On the statement
of financial position, right-of-use assets have been included in plant and equipment (except those meeting
the definition of investment property) and lease liabilities have been included in trade and other payables.
Current and non-current classification
i)
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the entity's normal operating cycle; it is held primarily for the purpose of trading; it is
expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent
unless restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12
months after the reporting period. All other liabilities are classified as non-current.
46
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Issued capital
j)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
k) Earnings Per Share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic earnings
per share is calculated by dividing the profit or loss after income tax attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the profit or loss after income tax attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding
during the period, adjusted for the effects of all dilutive potential ordinary shares, which comprise share
options granted to employees.
l) Revenue
Interest
Interest revenue is recognised as interest accrues using the effective interest method.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
m) Employee Benefits
Wages and salaries
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
wholly within 12 months of the reporting date are recognised in employee provisions in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when
the liabilities are settled.
Superannuation
The amount charged to the profit and loss in respect of superannuation represents the contributions paid
or payable by the Group to the employee’s superannuation funds.
Employee Benefits on-costs
Employee benefit on-costs, including payroll tax, are recognised when paid or payable by the Group.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
47
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date
and expected price volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the option, together with non-vesting conditions that do not determine whether the
Group receives the services that entitle the employees to receive payment. No account is taken of any
other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms
and conditions on which the award was granted. The cumulative charge to profit or loss until settlement
of the liability is calculated as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that
date multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of
the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is
the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has been
met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has
not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date of
modification.
48
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the Group or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the
remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
Income Taxes
n)
Income tax expense or revenue comprises current and deferred tax. Current and deferred taxes are recognised
in profit or loss except to the extent that it relates to a business combination, or items recognised directly in
equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect
of previous years.
Deferred tax assets and liabilities are recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences, the initial recognition
of assets and liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and associates
and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable
future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial
recognition of goodwill.
Deferred tax is measured at the tax rates expected to apply when the assets are recovered or liabilities
are settled, based on those rates which are enacted or subsequently enacted for each jurisdiction.
Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current
tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
49
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
o) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST. The net
amount of GST recoverable from, or payable to, the taxation authority is included as a current asset or
liability in the statement of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component
of investing and financing activities, which is disclosed as operating cash flows.
p) Segment Reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that related to transactions with any
of the Group’s other components. A geographical segment is engaged in providing products or services
within a particular economic environment and is subject to risks and returns that are different from those
of segments operating in other economic environments. The Board (Chief Operating Decision Makers
“CODM”) is responsible for the allocation of resources to operating segments and assessing their
performance.
q) Principles of Consolidation
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from
the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to the parent.
50
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of
profit or loss and other comprehensive income, statement of financial position and statement of changes
in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full,
even if that results in a deficit balance.
Fair value measurement
r)
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes
that the transaction will take place either: in the principal market; or in the absence of a principal market,
in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interests. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at
each reporting date and transfers between levels are determined based on a reassessment of the lowest
level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken, which includes a verification of
the major inputs applied in the latest valuation and a comparison, where applicable, with external sources
of data.
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and on
other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within
the next financial year are discussed below.
51
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using
either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the
instruments were granted. The accounting estimates and assumptions relating to equity-settled share-
based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
2. CRITICIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised and are only carried forward to the extent that
they are expected to be recouped through the successful development of the area or where activities in
the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves. Key judgements are applied in considering the costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised.
3. CASH AND CASH EQUIVALENTS
Cash at bank
4. OTHER ASSETS
Current
Accounts receivable
GST receivable
Deposit
Prepayments
Note
Consolidated
2023
$
2,037,164
2,037,164
Consolidated
2022
$
2,313,957
2,313,957
Consolidated
2023
$
-
83,912
46,000
23,532
153,444
Consolidated
2022
$
-
48,582
46,000
17,769
112,531
52
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
4.
OTHER ASSETS (CONTINUED)
Non-Current
Other asset – Currie Rose Resources Inc 1
Other asset – Vytas Resources Pty Ltd 2
7
Consolidated
2023
$
-
1,236,261
1,236,261
Consolidated
2022
$
281,363
849,860
1,131,223
1 The Company announced on 30th April 2021, that it had completed its Due Diligence on the Exploration
Program and elected to convert its expenditure to 8,333,333 shares in Currie Rose. During the year to 30
June 2022, the Company received confirmation that the shares had been issued. During the year to 30
June 2023, the Company sold 8,333,333 shares in Currie Rose.
2 Pursuant to the binding term sheet entered into with Vytas Resources Pty Ltd (“Vytas”) on 2 September
2021, Accelerate made available A$250,000 to Vytas in order to fund the work program on the Tambellup
and Midwest Silica Sand Projects, preparing for Vytas’ initial public offering and contributions to working
capital.
The Company announced on 30 November 2021, that the transaction had completed and Accelerate had
been issued with 27,120,000 shares, equal to 33% interest in Vytas.
5. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure – Western Australia
Exploration and evaluation expenditure – Western Australia
Opening balance
Additions 1
Impairment 2
Closing balance
1
Consolidated
2023
$
4,445,391
4,445,391
Consolidated
2022
$
2,121,929
2,121,929
2,121,929
3,377,462
(1,000,000)
4,499,391
912,356
1,209,573
-
2,121,929
In July 2022, the Company issued 7,000,000 fully paid ordinary shares as deferred consideration for the
Halcyon transaction, the deemed issue price was $0.0552 per share.
In June 2023, the Company issued 2,000,000 fully paid ordinary shares as consideration for the acquisition
of exploration tenements E45/5942 and E45/5907, the deemed issue price was $0.021 per share.
53
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
5.
EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
2 In June 2021, the Company announced that it had entered into a Heads of Agreement, granting an option
to unlisted company Stunalara Metals Limited (“Stunalara”), to acquire 100% of the legal and beneficial
interest in the Company’s Mt Read Project in Tasmania. The Mt Read Project comprises exploration
license EL06/2013. Upon exercising of the option, the Company will receive fully paid ordinary shares in
Stunalara to the value of $1,000,000 at a deemed issue price equal to the price per share offered to the
public under Stunalara’s proposed initial public offering or the 1-month VWAP price of an RTO vehicle
prior to a deal being announced for the listing via a reverse takeover (back door listing).
The parties mutually agreed to terminate the Heads of Agreement as of 25 October 2022 due to
unfavourable IPO market conditions.
As a result of the above, an impairment charge of $1,000,000 has been recognised during the year-end
to 30 June 2023.
Asset held for sale – Mt Read Project
6. PLANT AND EQUIPMENT
Plant and equipment
- at cost
- accumulated depreciation
Plant and equipment – movements
Opening balance
Additions
Depreciation
Closing balance
7. FINANCIAL ASSETS – FAIR VALUE OCI
At beginning of year
Changes in fair value - sale of financial assets
Other adjustment
At end of year
Consolidated
2023
$
-
Consolidated
2022
$
1,000,000
Consolidated
2023
$
Consolidated
2022
$
135,363
(26,703)
108,660
11,426
108,021
(10,787)
108,660
Consolidated
2023
$
281,363
(268,363)
(13,000)
-
27,342
(15,916)
11,426
5,454
8,175
(2,203)
11,426
Consolidated
2022
$
549,571
(268,208)
-
281,363
54
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
7.
FINANCIAL ASSETS – FAIR VALUE OCI (CONTINUED)
Financial assets – fair value OCI, consist of investments in TSX-V listed company. During the year ended
30 June 2023, all investments were disposed of.
8. TRADE AND OTHER PAYABLES
Trade payables
Accruals
Other payables
Consolidated
2023
$
230,257
35,460
55,051
320,768
Consolidated
2022
$
216,687
42,815
6,665
266,167
Trade creditors, excluding related party payables, are expected to be paid on 30-day terms.
9. PROVISION
Employee annual leave provision
Consolidated
2023
$
100,464
100,464
Consolidated
2022
$
63,857
63,857
55
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
10. ISSUED CAPITAL
Ordinary shares on issue, fully paid
Consolidated
30-Jun-23
No.
379,601,756
Consolidated Consolidated Consolidated
30-Jun-22
$
12,948,619
30-Jun-22
No.
263,458,899
30-Jun-23
$
16,169,011
Reconciliation of Movement in Issued Capital
Closing balance at 30 June 2021
Placement – tranche 1
Placement – tranche 2
Shares to Finders Fee 1
Acquisition of Volcanic (Note 5)
Acquisition of Braeside West and Ripon
Hills2
Acquisition of Barramine (Note 5)
Share Issue Cost
Closing balance at 30 June 2022
Deferred consideration for Halcyon
transaction (Note 5)
Placement – Tranche 1
Placement – Tranche 2
Acquisition of E45/5942 and E45/5907 (Note
5)
Share Issue Cost
Closing balance at 30 June 2022
Shares
No.
156,847,794
38,899,428
47,211,677
2,000,000
500,000
Date
Issue Price
$
20-Sep-21
16-Nov-21
16-Nov-21
16-Nov-21
0.036
0.036
0.048
0.072
Amount
$
9,090,949
1,400,379
1,699,621
96,000
36,000
8,000,000
01-Dec-21
0.039
312,000
21-Apr-22
0.05
10,000,000
-
263,458,899
500,000
(186,330)
12,948,619
7,000,000
04-Jul-22
0.0552
386,400
40,568,834
66,574,023
21-Nov-22
28-Dec-22
2,000,000
09-Jun-22
0.028
0.028
0.021
-
379,601,756
1,135,927
1,864,073
42,000
(208,008)
16,169,011
* Total value of share capital issued during the year ended 30 June 2023 amounted to $3,428,400.
1 On 16 November 2021, 2,000,000 fully paid ordinary shares were issued to advisors pursuant to finders’
fee agreements, of which 1,500,000 shares are voluntarily restricted to 15 November 2022.
2 On 1 December 2021, 8,000,000 fully paid ordinary shares were issued for the exercise of the option to
acquire the Mineral Rights on the Ripon Hills and Braeside West Projects in the East Pilbara Manganese
Field.
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the
Group in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares
have no par value and the Company does not have a limited amount of authorised capital. On a show of
hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
56
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
10. ISSUED CAPITAL (CONTINUED)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it may continue to provide returns for shareholders and benefits for other stakeholders. The
Group’s capital includes ordinary share capital and financial liabilities, supported by financial assets.
Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to
credit facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the
Group’s capital risk management is to balance the current working capital position against the
requirements of the Group to meet exploration programmes and corporate overheads. This is achieved
by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required. The Group is not subject to any externally imposed capital
requirements.
Cash and cash equivalents
Trade and other receivables (excludes deposit)
Trade and other payables
Working capital position
11. RESERVES
Options reserve
Performance rights reserve
Fair value reserve
Consolidated
2023
$
2,037,164
107,444
(320,768)
1,823,840
Consolidated
2022
$
2,313,957
66,351
(266,167)
2,114,141
Consolidated
2023
$
2,781,021
14,534
-
2,795,555
Consolidated
2022
$
2,722,973
34
(268,208)
2,454,799
Option reserve
Options issued carry no dividend or voting rights. When exercisable, each option is convertible to one
ordinary share.
57
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES (CONTINUED)
Closing balance at 30 June 2021
Options issued to Directors 1
Options issued to Directors 2
Options issued to acquire Barramine3
Options expired 4
Closing balance at 30 June 2022
Options issued to Shareholders 5
Options issued to Placement Advisor 6
Options issued to Consultants of the Company7
Options expired 8
Closing balance at 30 June 2023
No. of Options
33,000,000
4,500,000
1,000,000
10,000,000
(5,000,000)
43,500,000
53,571,376
5,000,000
3,250,000
(14,000,000)
43,500,000
$
2,367,354
124,913
20,276
210,430
-
2,722,973
-
20,276
210,430
-
2,722,973
1 On 16 November 2021, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each,
expiring 16 November 2024, to Directors of the Company.
2 On 1 February 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring
1 February 2025, to a Director of the Company.
3 On 22 April 2022, the Company issued 10,000,000 unlisted options exercisable at $0.10 each, expiring
22 October 2024 in relation to the Barramine asset acquisition.
4 On 14 February 2022, 5,000,000 unlisted options exercisable at $0.25 each expired.
5 On 28 December 2022, the Company issued 53,571,376 unlisted options exercisable at $0.05 each,
expiring 28 December 2024 as free attaching options to participants of the Placement.
6 On 28 December 2022, the Company issued 5,000,000 unlisted options exercisable at $0.05 each,
expiring 28 December 2024 to the Placement Advisor.
7 On 27 January 2023, the Company issued 2,250,000 unlisted options exercisable at $0.05 each, expiring
27 January 2025 and 1,000,000 unlisted options exercisable at $0.05 each, expiring 1 December 2024 to
employees and consultants of the Company.
8 On 27 November 2022 and 9 June 2023, 9,000,000 and 5,000,000 unlisted options exercisable at
$0.0959, $0.0957 and $0.06 each expired.
58
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES (CONTINUED)
Summary of options granted as at 30 June 2023 are as follows:
Exercise
Price
$0.06
$0.06
Balance at
Start of Year Granted
Grant Date Expiry Date
28/05/2020 09/06/2023
30/08/2020 02/09/2023
31/10/2020 27/11/2022 $0.0959
23/11/2020 27/11/2024 $0.0957
23/11/2020 27/11/2022 $0.0957
16/11/2021 16/11/2024 $0.0593
$0.059
01/02/2022 01/02/2025
$0.10
22/04/2022 22/10/2024
$0.05
28/12/2022 28/12/2024
$0.05
28/12/2022 28/12/2024
$0.05
27/01/2023 27/01/2025
$0.05
27/01/2023 01/12/2024
5,000,000
5,000,000
1,500,000
9,000,000
7,500,000
4,500,000
1,000,000
10,000,000
-
-
-
-
-
-
-
-
- 53,571,376
5,000,000
-
2,250,000
-
1,000,000
-
43,500,000 61,821,376
Balance at
Start of Year Granted
Summary of options granted as at 30 June 2022 are as follows:
Exercise
Price
Grant Date Expiry Date
$0.25
18/01/2018 12/02/2022
$0.06
28/05/2020 09/06/2023
30/08/2020 02/09/2023
$0.06
31/10/2020 27/11/2022 $0.0959
23/11/2020 27/11/2024 $0.0957
23/11/2020 27/11/2022 $0.0957
16/11/2021 16/11/2024 $0.0593
$0.059
01/02/2022 01/02/2025
$0.10
22/04/2022 22/10/2024
-
5,000,000
-
5,000,000
-
5,000,000
-
1,500,000
-
9,000,000
-
7,500,000
4,500,000
-
-
1,000,000
- 10,000,000
33,000,000 15,500,000
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
-
Exercised
-
-
-
-
-
-
-
-
-
-
Balance at
Expired /
End of Year
Cancelled
-
(5,000,000)
5,000,000
-
-
(1,500,000)
9,000,000
-
-
(7,500,000)
4,500,000
-
-
1,000,000
- 10,000,000
- 53,571,376
5,000,000
-
2,250,000
-
1,000,000
-
(14,000,000) 91,321,376
Balance at
Expired /
End of Year
Cancelled
-
(5,000,000)
5,000,000
-
5,000,000
-
1,500,000
-
9,000,000
-
7,500,000
-
4,500,000
-
-
1,000,000
- 10,000,000
(5,000,000) 43,500,000
The weighted average exercise price of the outstanding options as at 30 June 2023 was $0.06 (30 June
2022: $0.08). The weighted average remaining contractual life of options outstanding at 30 June 2023
was 1.39 years (30 June 2022: 1.67 years).
59
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES (CONTINUED)
Performance rights reserve
Performance rights issued carry no dividend or voting rights. When exercisable, each performance right
is convertible to one ordinary share.
Closing balance at 30 June 2021
Performance rights issued to a Consultant 1
Closing balance at 30 June 2022
Performance rights issued to a Consultant 2
Closing balance at 30 June 2023
No. of Rights
-
500,000
500,000
1,000,000
1,500,000
$
-
34
34
14,500
14,534
1 On 27 June 2022, the Company granted 500,000 performance rights expiring 1 October 2023 to a
Consultant. The performance rights were valued at $0.032 per right, being the share price on the grant
date, which reflects fair value in line with AASB 2 Share-Based Payment.
2 On 27 January 2023, the Company granted 1,000,000 performance rights expiring 1 December 2023 to
a Consultant. The performance rights were valued at $0.029 per right, being the share price on the grant
date, which reflects fair value in line with AASB 2 Share-Based Payment.
12. SHARE-BASED PAYMENTS
On 28 December 2022, the Company issued 5,000,000 unlisted options exercisable at $0.05 each, expiring
28 December 2024, to Placement Advisors of the Company.
On 27 January 2023, the Company issued 2,250,000 unlisted options exercisable at $0.05 each, expiring
27 January 2025, to Employees and Consultants of the Company.
On 27 January 2023, the Company issued 1,000,000 unlisted options exercisable at $0.05 each, expiring 1
December 2024, to a Consultant of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the
inputs to the model used for the valuation of the options:
Grant Date
28/12/2022
27/01/2023
27/01/2023
Expiry Date
28/12/2024
27/01/2025
01/12/2024
Exercise
Price
$0.05
$0.05
$0.05
Share Price
at Grant
Date
$0.023
$0.029
$0.029
Expected
Volatility
100.0%
100.0%
100.0%
Risk-free
Interest
Rate
3.42%
3.17%
3.17%
Fair Value
per Option
$0.0081
$0.0117
$0.0111
60
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
12. SHARE BASED PAYMENTS (CONTINUED)
On 27 January 2023, the Company granted 1,000,000 performance rights expiring 1 December 2023 to a
Consultant. The performance rights were valued at $0.029 per right, being the share price on the grant
date, which reflects fair value in line with AASB 2 Share-Based Payment.
13. EARNINGS PER SHARE
Loss after income tax (used in calculating both basic and diluted loss
per share)
Basic loss per share (cents)
Diluted loss per share (cents)
Weighted average number of ordinary shares used in calculating
basic and diluted EPS
14. INCOME TAX EXPENSE
Consolidated
2022
$
Consolidated
2021
$
(1,489,738)
(3,374,055)
Cents
(0.66)
(0.66)
Cents
(2.37)
(2.37)
Number
Number
224,488,940
142,274,032
A reconciliation between the income tax expense and the product of accounting profit before income
tax multiplied by the Group’s applicable income tax rate is as follows:
Consolidated
2023
$
Consolidated
2022
$
Loss before income tax
(2,308,322)
(1,221,530)
Prima facie benefit on operation loss at 25% (2022: 25%)
Non-allowable expenditure
Non-assessable income
Temporary differences not brought to account as a deferred tax
asset / (liability)
Tax losses not brought to account as a deferred tax asset
Income tax benefit
(577,080)
18,137
-
(305,383)
36,313
-
(329,065)
(202,902)
888,008
-
471,971
-
Unrecognised tax losses
11,960,939
8,254,843
61
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
14. INCOME TAX EXPENSE
A potential deferred tax asset, attributable to tax losses carried forward, amounts to approximately
$747,559 (2022: $515,928) and has not been brought to account at reporting date because the
directors do not believe it is appropriate to regard realisation of the deferred tax asset as probable at
this point in time. This benefit will only be obtained if:
•
•
•
•
•
the Group derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the loss incurred;
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions
for the loss incurred.
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions
for the loss incurred.
15. CASH FLOW INFORMATION
Reconciliation of cash flow from operating activities with loss after income tax:
Loss after income tax
Add / (deduct) non-cash items:
Share based payment expense
Depreciation
Impairment of exploration expenditure
Loss on sale of investments
Changes in assets and liabilities:
Other current assets
Trade and other payables
Provisions
Cash outflows from operating activities
Consolidated
2023
$
Consolidated
2022
$
(2,308,322)
(1,221,530)
72,548
10,787
1,000,000
92,679
(31,955)
10,682
36,607
(1,116,974)
145,224
2,203
90,590
-
(31,023)
197,790
24,361
(792,385)
62
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
16. RELATED PARTY TRANSACTIONS
a) Key Management Personnel Compensation
Short-term employee benefits – Cash, salary and fees
Post-employment benefits
Share-based payment
Consolidated
2023
$
440,996
29,761
-
470,757
Consolidated
2022
$
339,375
23,875
145,189
508,439
b) Transactions with Related Parties
There were no other transactions with related parties other than through Key Management Personnel
Compensation above.
c) Amount owing from / (to) Related Parties
There were no amounts owing from / (to) related parties at 30 June 2022 (2021: nil).
16. AUDITOR’S REMUNERATION
Audit services
Audit or review of the financial statements
17. COMMITMENTS
Consolidated
2023
$
Consolidated
2022
$
28,109
28,109
23,000
23,000
Operating lease commitments consists of various mining tenement leases in Western Australia (Woodie
Woodie North, Comet, Pilbara Lithium).
The Group has annual minimum expenditure commitments of $473,000 (2022: $224,000 excluding
commitments of $65,000 relating to the Mt Read Cobalt Project which is being met by Stunalara Metals
Limited under a Heads of Agreement).
18. OPERATING SEGMENTS
The Group has identified its operating segments based on the internal reports that are used by the Board
(the chief operating decision makers) in assessing performance and in determining the allocation of
resources. The operating segments are identified by the Board based on the phase of operation within
the mining industry.
63
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
18. OPERATING SEGMENTS (CONTINUED)
For management purposes, the Group has organised its operations into one reportable segment on the
basis of stage of development as follows:
•
Exploration and evaluation assets, which includes assets that are associated with the
determination and assessment of the existence of commercial economic reserves.
The Board as a whole will regularly review the identified segments in order to allocate resources to the
segment and to assess its performance. During the year ended 30 June 2021 and 30 June 2022, the Group
had no development assets. The Board considers that it has only operated in one segment, being mineral
exploration. The Group is domiciled in Australia. Another income from external customers are only
generated from Australia. No income was derived from a single external customer.
19. CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
wholly-owned subsidiaries in accordance with the accounting policy described in Note 1.
Volcanic Resources Pty Ltd
Attstar Pty Ltd
Country of
Incorporation
Australia
Australia
Principal Activities
Exploration
Exploration
Ownership
2023 (%)
100 1
100 2
Ownership
2022 (%)
100 1
100 2
1 Volcanic Resources Pty Ltd was acquired on 27 November 2020. Refer to Note 5 for more details on the
acquisition.
2 Attstar Pty Ltd was acquired on 15 February 2022. Refer to Note 5 for more details on the acquisition.
64
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
20. PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the legal parent, being
Accelerate Resources Limited and has been prepared in accordance with Accounting Standards.
Financial Position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2023
$
2022
$
2,190,608
5,844,312
8,034,920
421,232
421,232
7,613,688
16,169,011
2,795,555
(11,350,878)
7,613,688
3,426,308
3,264,578
6,690,886
330,024
330,024
6,360,862
12,948,619
2,454,799
(9,042,556)
6,360,862
(2,308,322)
268,208
(2,040,114)
(1,221,530)
(268,208)
(1,489,738)
20. PARENT ENTITY DISCLOSURES (CONTINUED)
The Parent Entity has no capital commitments and has not entered into a deed of cross guarantee nor are
there any contingent liabilities, apart from that mentioned in Note 24, at the year end.
21. FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks from their use of financial instruments:
credit risk;
liquidity risk; and
•
•
• market risk.
65
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
21. FINANCIAL RISK MANAGEMENT (CONTINUED)
This note presents information about the Group’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. Management monitors and manages the financial risks relating to the
operations of the Group through regular reviews of the risks.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting
date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the statement of financial position and notes to the financial statements.
The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s
exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value
of transactions is spread amongst approved counterparties.
Credit risk related to balances with banks and other financial institutions is managed by the board. The
board’s policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s
rating of at least AA-. All of the Group’s surplus funds are invested with AA- Rated financial institutions.
The Group does not have any material credit risk exposure to any single receivable or Group of receivables
under financial instruments entered into by the Group.
The credit risk for counterparties included in cash and cash equivalents as at 30 June 2022 is detailed
below:
Financial assets:
Cash and cash equivalents
Consolidated
2023
$
Consolidated
2022
$
2,037,164
2,037,164
2,313,957
2,313,957
Liquidity risk
The responsibility with liquidity risk management rests with the Board of Directors. The Group manages
liquidity risk by monitoring forecast cash flows and ensuring that adequate working capital is maintained.
The Group’s policy is to ensure that it has sufficient cash reserves to carry out its planned exploration
activities over the next 12 months.
The Group’s financial instrument liabilities of $320,768 are expected to be paid within one year.
66
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
NOTES TO THE FINANCIAL STATEMENTS
21. FINANCIAL RISK MANAGEMENT (CONTINUED)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments.
Interest rate risk
The Group does not have any exposure to interest rate risk as there were no external borrowings at 30
June 2022 (2021: nil). Interest bearing assets are all short-term liquid assets and the only interest rate risk
is the effect on interest income by movements in the interest rate. There is no other material interest rate
risk.
Fair values
The net fair values of financial assets and financial liabilities approximate their carrying value. The
methods for estimating fair value are outlined in the relevant notes to the financial statements.
22. EVENTS SUBSEQUENT TO BALANCE DATE
On 3 July 2023, the Company announced its Non-Executive Director Dr Steve Bodon took up a new role
as the Company’s Executive Director – Technical, effective 1 August 2023.
On 25 August 2023, the Company issued 1,000,000 fully paid ordinary shares as consideration for the
Public Relation Services provided by SparkPlus.
On 2 September 2023, the Company announced the expiry of 5,000,000 options exercisable at $0.06.
On 6 October 2023, the Company announced a placement by issuing up to 180,000,000 new fully paid
ordinary shares at an issue price of $0.02 per share to raise $3.6 million.
There are no other matters or circumstances that have arisen since 30 June 2023 to the date of this report
that have significantly affected, or may significantly affect the Group’s operations, the results of those
operations, or the Group’s state of affairs in future financial years.
23. CONTINGENT LIABILITIES AND ASSETS
At 30 June 2023, there was contingent consideration payable of 8,000,000 ordinary shares relating to the
acquisition of Halcyon Resources Pty Ltd on 18 November 2019. These contingent consideration shares
are payable based on Accelerate Resources announcing on ASX platform upon shipment(s) of 50,000 tons
of Kaolin Clay or derived product from the Project (E70/4969).
-
There were no other contingent assets at 30 June 2023 (2022: nil).
67
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
DIRECTORS’ DECLARATION
In the opinion of the Directors of the Group:
a)
The financial statements and notes set out on the preceding pages are in accordance with the
Corporations Act 2001 including:
i
ii
Giving a true and fair view of the financial position of the Group as at 30 June 2023 and of its
performance for the financial year ended on that date; and
Complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable;
The financial statements and notes are in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
b)
c)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of Corporations
Act 2001.
Yaxi Zhan
Managing Director
29 September 2023
Perth
68
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCELERATE RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Accelerate Resources Limited (“the Company”) and its subsidiaries
(“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June
2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2023 and
of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report which indicates that the Consolidated Entity incurred a loss
of $2,308,322 during the year ended 30 June 2023. As stated in Note 1, these events or conditions, along with
other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt
on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this respect
of this matter.
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 of the current period. 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.
Key Audit Matter
How our audit addressed the Key Audit Matter
Exploration and Evaluation Expenditure
The carrying amount of exploration and evaluation
Our procedures included, amongst others:
expenditure as at 30 June 2023 was $4,449,391.
Exploration and evaluation expenditure is a key audit
matter due to:
• The significance of the balance to the
Company’s financial position;
• The
level of
in
evaluating management’s application of the
judgement
required
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources (“AASB
6”). AASB 6
accounting
is an
standard
industry specific
the
requiring
application of
significant
judgements,
estimates and industry knowledge. This
for
includes
requirements
specific
• Assessed management’s determination of
its areas of interest for consistency with the
definition in AASB 6. This involved analysing
the tenements in which the Company holds
an interest and the exploration programmes
planned for those tenements.
• Agreed the terms of acquisition agreements
and on a sample basis corroborated rights to
tenure to government registries and relevant
agreements as applicable; For each area of
interest, we assessed the Company’s rights
to tenure by corroborating to government
registries and evaluating agreements in
place with other parties as applicable.
expenditure to be capitalised as an asset
and subsequent requirements which must
• Considered the activities in each area of
interest to date and assessed the planned
be complied with for capitalised expenditure
to continue to be carried as an asset; and
future activities for each area of interest by
evaluating budgets.
The assessment of impairment of exploration and
evaluation expenditure being inherently difficult.
• Substantiated a sample of expenditure by
agreeing to supporting documentation.
• We assessed each area of interest for one
or more of the following circumstances that
may indicate impairment of the capitalised
expenditure:
o
the licenses for the right to explore
expiring in the near future or are not
expected
renewed; o
substantive expenditure for further
to be
exploration in the specific area is
neither budgeted or planned
Key Audit Matter
How our audit addressed the Key Audit Matter
o decision or intent by the Company to
discontinue activities in the specific
area of interest due to lack of
commercially viable quantities of
resources; and
o data
indicating that, although a
development in the specific area is
the carrying
likely
to proceed,
amount of the exploration asset is
unlikely to be recovered in full from
successful development or sale.
• Assessed
the appropriateness of
the
disclosures included in the relevant notes to
the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Consolidated Entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain
solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of Accelerate Resources Limited, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
CHRIS NICOLOFF CA
Director
Dated this 29th day of September 2023
Perth, Western Australia
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
ASX ADDITIONAL INFORMATION
SCHEDULE OF MINING TENEMENTS HELD AT THE REPORT DATE
Status
Location
Beneficial Percentage
Interest
Tenement
Number
E20/908
E20/970
E21/213
E21/214
E20/965
Granted
Western Australia
Granted
Western Australia
Granted
Western Australia
Granted
Western Australia
Granted
Western Australia
Project
Comet
Comet
Comet
Comet
Comet
Comet
Comet
E20/1000
Application
Western Australia
E21/217
Application
Western Australia
Wooleen Project
E09/2757
Application
Western Australia
Wooleen Project
E59/2775
Application
Western Australia
Wooleen Project
E59/2628
Granted
Western Australia
Wooleen Project
E59/2629
Application
Western Australia
Wooleen Project
E59/2630
Granted
Western Australia
Wooleen Project
E59/2632
Application
Western Australia
Wooleen Project
E59/2646
Application
Western Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Woodie Woodie North
E45/5854
Granted
Western Australia
100% Mn and Iron Right
Woodie Woodie North
E45/5088
Granted
Western Australia
100% Mn and Iron Right
Woodie Woodie North
E45/5978
Granted
Western Australia
Woodie Woodie North
E45/6100
Application
Western Australia
Woodie Woodie North
E45/5907
Application
Western Australia
Woodie Woodie North
E45/5942
Application
Western Australia
Woodie Woodie North
E45/6508
Application
Western Australia
Pilbara Lithium
E45/6278
Application
Western Australia
Pilbara Lithium
E45/6279
Application
Western Australia
Pilbara Lithium
E45/6280
Application
Western Australia
Pilbara Lithium
E45/66416 Application/Ballot Western Australia
Mt Read
EL 6/2013
Granted
Tasmania
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
74
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
ASX ADDITIONAL INFORMATION
Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual Report
is set out below. The information is current as at 26 September 2023.
SHAREHOLDINGS
The issue capital of the Company as at 26 September 2023 is 380,601,756 ordinary fully paid shares. As at 26
September 2023 there are no substantial holders.
Distribution of Shareholders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
No. of
Shares
No. of Holders
5,020
32
97,551
26
97
855,269
414 17,727,737
367 361,916,17
9
936 380,601,75
6
Number holding less than a marketable parcel
248
2,336,847
1
2
3
Top 20 Shareholders of Quoted Shares
MR CRAIG MICHAEL LAKE + MRS JUDITH MAY LAKE
SWANCAVE PTY LTD
SILVERPEAK NOMINEES PTY LTD
MR ANTON WASYL MAKARYN + MRS MELANIE FRANCES
MAKARYN
BRIGHT ELEMENT PTY LTD
MR MARX LIN
BATAVIA CAPITAL PTY LTD
QUEBEC NOMINEES PTY LTD
GELLI PTY LTD
MISS YAXI ZHAN
GENDPORT PTY LTD
VALIAN NOMINEES PTY LTD
4
5
6
7
8
9
10
11
12
13 W M T RESOURCES PTY LTD
14
ADRIATIC PTY LTD
GANDRIA CAPITAL PTY LTD
GOVINDA FREEDOM FUND PTY LTD
WALLCLIFFE HOLDINGS PTY LTD
MRS ADRIENNE ROSEMARY HAWKINS
SOLSTRAALE NOMINEES PTY LTD
MR ROLAND MICHAEL JOHNSTON
15
16
17
18
19
20
No. of
Shares Held
% Held
10,000,000
9,400,000
9,132,653
7,974,918
7,142,857
6,745,495
6,177,500
5,700,000
5,000,000
4,810,009
4,800,000
4,350,000
4,140,000
4,100,000
4,100,000
4,100,000
4,000,000
4,000,000
3,820,000
3,680,000
2.63
2.47
2.4
2.1
1.88
1.77
1.62
1.5
1.31
1.26
1.26
1.14
1.09
1.08
1.08
1.08
1.05
1.05
1
0.97
75
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
ASX ADDITIONAL INFORMATION
OPTION HOLDINGS
The Company has the following classes of options on issue at 26 September 2023 as detailed below.
Class
Type
AX8OPT1 Unlisted Options
Terms
Unlisted options exercisable at $0.10 each, expiring 22
October 2024
AX8OPT2
AX8OPT3
AX8OPT4
AX8OPT5
AX8OPT6
AX8OPT7
Unlisted Options Unlisted options exercisable at $0.0593 each, expiring 16
November 2024- Directors
Unlisted Options Unlisted options exercisable at $0.0957 each, expiring 27
November 2024
Unlisted Options Unlisted options exercisable at $0.059 each, expiring 1
February 2025
Unlisted Options Unlisted options exercisable at $0.05 each, expiring 28
December 2024
Unlisted Options Unlisted options exercisable at $0.05 each, expiring 27
January 2025
Unlisted Options Unlisted options exercisable at $0.05 each, expiring 1
December 2024
No. of
Options
10,000,000
4,500,000
9,000,000
1,000,000
58,571,376
2,250,000
1,000,000
86,321,376
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT1)
No. of Holders
No. of Options
-
-
-
2
9
11
-
-
-
200,000
9,800,000
10,000,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT1)
Holder
WMT RESOURCES PTY LTD
No. of Options
2,990,000
%
29.9
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
Unlisted Options (AX8OPT2)
No. of Holders
No. of Options
-
-
-
-
-
-
76
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
ASX ADDITIONAL INFORMATION
10,001 – 100,000
100,001 and over
-
3
3
-
4,500,000
4,500,000
The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT2).
Holder
EMPF INVESTMENT PTY LTD
SILVERPEAK NOMINEES PTY LTD
GRANT JONATHAN MOONEY
No. of Options
2000000
1500000
1000000
%
44.44
33.33
22.22
The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT3).
Holder
GRANT MOONEY
MISS YAXI ZHAN
SILVERPEAK NOMINEES PTY LTD
No. of Options
3,000,000
3,000,000
3,000,000
%
33.33
33.33
33.33
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT4).
Holder
STEPHEN BRUCE BODON
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
No. of Options
1,000,000
%
100
Unlisted Options (AX8OPT5)
No. of Holders
No. of Options
-
-
-
13
113
126
-
-
-
1,097,742
57,473,634
58,571,376
No Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT5).
Holder
No. of Options
%
The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT6).
Holder No. of Perf. Rights
1
2
OOFY PROSSER PTY LTD
BEVERLEY NICHOLS
%
1,500,000
500,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT7).
Holder
66.67
22.22
77
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2023
ASX ADDITIONAL INFORMATION
Holder
JOSEPH ALLEN PRINSIP DRAKE-BROCKMAN
No. of Options
1,000,000
%
100
PERFORMANCE RIGHTS HOLDINGS
The Company has the following performance rights on issue at 26 September 2023 as detailed below.
Holder
JOSEPH ALLEN PRINSIP DRAKE-BROCKMAN
No. of Perf. Rights
1,000,000
%
100
RESTRICTED SECURITIES
Restricted Class
Fully paid ordinary shares
No. of Securities
1,000,000
Restriction Period
Voluntarily escrowed to 25 February 2024
VOTING RIGHTS
The holders of ordinary shares are entitled to one vote per share at meetings of the Company. Options and
Performance Rights do not carry any rights to vote.
ON-MARKET BUY BACK
There is no current on-market buy back.
78