ALCHEMY RESOURCES LIMITED
ABN 17 124 444 122
ANNUAL REPORT
For the year ended 30 June 2023
CONTENTS
CORPORATE DIRECTORY ................................................................................................................................................... 2
CHAIR’S LETTER ..................................................................................................................................................................... 3
KEY INVESTMENT HIGHLIGHTS....................................................................................................................................... 4
REVIEW OF ACTIVITIES ....................................................................................................................................................... 5
AUDITOR’S INDEPENDENCE DECLARATION ........................................................................................................... 41
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023 ......................................................................................................................... 42
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023 ......................................... 43
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023 ......... 44
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023 ......................... 45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2023 ....................................................................................................................................................................... 46
DIRECTORS’ DECLARATION............................................................................................................................................ 67
INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................................... 68
ADDITIONAL SHAREHOLDER INFORMATION AS AT 22 SEPTEMBER 2023 ................................................. 72
TENEMENT SCHEDULE ..................................................................................................................................................... 74
ANNUAL REPORT 30 JUNE 2023
Page 1 of 75
CORPORATE DIRECTORY
DIRECTORS & MANAGEMENT
Lindsay Dudfield Non-Executive Chair
Liza Carpene
Anthony Ho
James Wilson
Non-Executive Director
Non-Executive Director
Chief Executive Officer
COMPANY SECRETARY
Carly Terzanidis
REGISTERED ADDRESS
Level 3, 88 William Street
Perth WA 6000
PRINCIPAL PLACE OF BUSINESS
Suite 8, 8 Clive Street
West Perth WA 6005
Telephone:
Facsimile:
Email:
Web:
+61 (8) 9481 4400
+61 (8) 9481 4404
admin@alchemyresources.com.au
www.alchemyresources.com.au
AUDITORS
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
BANKERS
National Australia Bank
226 Main Street
Osborne Park WA 6017
SHARE REGISTRY
Automic Group
Level 5, 191 St Georges Terrace
Perth WA 6000
Telephone:
+61 (2) 9698 5414
STOCK EXCHANGE LISTING
The Company is listed on the Australian Securities Exchange Ltd (“ASX”)
Home Exchange: Perth, Western Australia
ALY
ASX Code:
ANNUAL REPORT 30 JUNE 2023
Page 2 of 75
CHAIR’S LETTER
Dear Fellow Shareholders,
On behalf of the Board of Directors, I am pleased to present the Annual Report of Alchemy Resources
Limited for the year ended 30 June 2023.
Alchemy holds five main projects covering a range of commodities including gold, lithium, base metals,
nickel and cobalt, all located in mining friendly parts of Australia and each with the potential to host
“company making” deposits.
Alchemy successfully completed multiple exploration programs in Western Australia and continued to
advance projects in New South Wales towards drill testing, with exploration activities managed to
ensure the well-being and safety of our employees, contractors and local communities.
At our 100% owned Karonie Project in Western Australia our maiden drill program to follow up lithium
anomalies outlined last year intersected lithium bearing minerals at the Hickory prospect, and recent
field mapping has discovered additional lithium potential at Mesquite and Taupo North. Alchemy has
now outlined a prospective mineralised corridor extending over 50km which has never been previously
explored for lithium, with many of our current targets to be drill tested over the next 12 months.
An important milestone during the year was the execution of two heritage protection agreements
(“HPA”) over our Karonie and Lake Rebecca tenure, signed with the representatives of the Kakarra and
Nyalpa Pirniku People in Western Australia. Alchemy is committed to working with our traditional owner
partners across all our projects and through these agreements we have a framework to build strong
and long-term relationships.
Our Bryah Basin our Gold and Base Metals Joint Ventures, also in WA, continued to be advanced at no
cost to Alchemy by partners Catalyst Metals and Sandfire Resources respectively. Catalyst Metals
recently acquired all issued and outstanding common shares in the capital of Superior Gold, Alchemy’s
former JV partner, and Alchemy looks forward to working with Catalyst on the Joint Venture.
Catalyst continues to evaluate the potential to include the 114,000oz Hermes South deposit (and any
additional resources outlined at the Joint Venture) as open pit feed for the Plutonic Mine, 65km to the
north-east. Meanwhile, Sandfire continued to explore our ground located along strike of the DeGrussa
copper-gold mine.
During the period Alchemy reviewed historic core from the Yellow Mountain and Overflow prospects.
Yellow Mountain is a very promising base metal-gold target which has not been explored since 1986
and we look forward to completing access agreements with the traditional owners and commencing
drilling at the prospect.
On behalf of the Board, I would like to thank our CEO James Wilson and the rest of the small but
dedicated Alchemy team for their efforts during the period. I would also like to thank you, our
shareholders for your support, which is critical to the Company’s success going forward.
The next 12 months promises to be an exciting time for Alchemy shareholders with follow-up drill testing
of lithium and gold targets at Karonie and Lake Rebecca, and drill testing of high impact targets in NSW
expected to commence. We look forward to reporting to shareholders on our progress as we continue
to build the Company.
Lindsay Dudfield
Chair
ANNUAL REPORT 30 JUNE 2023
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KEY INVESTMENT HIGHLIGHTS
Growth strategy focussed on building a portfolio of quality mineral resources through innovative
exploration and strategic acquisition, with the aim of realising value to Shareholders through the mining
or sale of mineral discoveries.
KARONIE PROJECT (WA) and LAKE REBECCA (WA) – Lithium and Gold
Quality lithium and gold targets close to existing resources and processing infrastructure.
LACHLAN/COBAR BASIN PROJECTS (NSW) – Gold / Base Metals
High grade gold and base metal drill targets within the Overflow and Yellow Mountain Projects.
BRYAH BASIN PROJECT (WA) – Gold / Base Metals
Joint-venture funded exploration for high-grade gold and base metals in a highly prospective
metallogenic province.
CORPORATE
The Company completed a placement of 220,000,000 ordinary fully paid shares (“Placement Shares”) in
October 2022 raising $5,500,000 (before costs). The Placement Shares were issued at $0.025 per Share.
The funds raised are to be used primarily for drilling and soil sampling at the Karonie Lithium and Gold
Projects, exploration programs at the Lake Rebecca Project, drilling at the Overflow and Yellow
Mountain Gold/Base Metals Projects, and general working capital requirements.
On 7 September 2022 and 4 October 2022, a total of 2,199 unlisted options were exercised at $0.03 per
option.
On 17 October 2022, the Company issued 10,000,000 unlisted options to the joint lead managers of the
Placement exercisable at $0.05 expiring three years from issue.
On 18 November 2022, 5,000,000 unlisted options were exercised at $0.02 per option.
On 30 September 2022, 32,698,410 unlisted options exercisable at $0.03 expired.
On 23 December 2022, after the receipt of shareholder approval, 2,000,000 unlisted options exercisable
at $0.0405 per option expiring three years from issue, were issued to each of the non-executive directors
Lindsay Dudfield, Liza Carpene and Anthony Ho.
Shareholders approved the adoption of a new Employee Securities Incentive Plan and an amended
Constitution at the Annual General Meeting held on 29 November 2022.
The Company’s registered address was changed on 16 February 2023 to Level 3, 88 William Street, Perth
WA 6000.
ANNUAL REPORT 30 JUNE 2023
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REVIEW OF ACTIVITIES
Alchemy Resources Limited (ASX: ALY; “Alchemy” or “the Company”) is an Australian exploration
company focused on growth through the discovery and development of gold, base metal and battery
metal resources within Australia. The Company has built a significant land package in the Karonie-
Carosue Dam greenstone belt in the Eastern Goldfields region in Western Australia and has a Joint
Venture Agreement with Develop Global (ASX: DVP; “Develop”) where Alchemy has earned an 80%
interest in the Lachlan/Cobar Basin Projects in New South Wales, both well-endowed metal provinces
with significant upside for lithium, gold, silver, copper, lead, zinc, nickel and cobalt mineralisation.
The Company also maintains its interest in the Bryah Basin Project in the gold and base metal-rich
Gascoyne region of Western Australia, where farm-in and joint venture partners, Sandfire Resources Ltd
(ASX: SFR; “Sandfire”), and Billabong Gold Pty Ltd (“Billabong”), a subsidiary of ASX listed Catalyst Metals
Ltd (ASX: CYL) (“Catalyst”), are continuing to advance base metal and gold exploration, respectively
(Figure 1).
Figure 1: Alchemy Resources’ Project Location Map
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REVIEW OF ACTIVITIES
Exploration over the last 12 months focussed on the Karonie and Lake Rebecca Projects in Western
Australia and the Yellow Mountain, Melrose and Overflow Projects in New South Wales. The Western
Australian work included a continuation of the structural mapping, high resolution magnetics and
gravity surveys, soil sampling and reverse circulation (“RC”) drilling at the lithium targets at Cherry,
Hickory, Mesquite and Pecan and gold targets at Gilmore and KZ5. In New South Wales, work focussed
on a structural and historic drill core review of the Melrose, Yellow Mountain and Overflow Projects.
NSW Land Access negotiations continued to progress access into the Yellow Mountain area for future
drill programs. Heritage access agreements were completed in late 2022 over the majority of the
Karonie and Lake Rebecca tenure, and multiple clearance surveys were conducted to facilitate drill
access.
At Karonie, work focussed on mapping, sampling and drilling of the new lithium prospects of Cherry,
Hickory, Mesquite and Pecan. This included multiple rounds of detailed mapping, infill soil sampling
and rock-chip sampling. In addition, a significant program of first pass regional soil sampling across the
Karonie tenure was completed which returned anomalous lithium and pathfinder results at the new Red
Oak, Alder, Roe Hills and Taupo prospects. RC drill testing of the lithium prospects was conducted in
late 2022 and again in mid-2023 and confirmed the presence of spodumene and lepidolite minerals at
Hickory, Mesquite and most recently Taupo North, demonstrating that the area sits within a fertile
lithium-caesium-tantalum (“LCT”) pegmatite system.
At Lake Rebecca, work commenced on a first pass project wide sampling, mapping and targeting review
aimed at generating “camp scale” prospective areas for follow-up based on structural and lithological
criteria. The study outlined seven target areas for lithium exploration and five target areas for gold
exploration. Reconnaissance mapping identified the presence of pegmatites and granite dykes in the
region which require additional mapping and further follow-up.
Exploration within the Bryah Basin Joint Venture (“JV”) continued with Sandfire engaging external
consultants to complete a basin wide study over the JV tenure. The work included the construction of
a 3D basin scale model and the engagement of geochemical and structural geologists. This work was
completed earlier in the year and Sandfire geologists continue to review the data.
Exploration of Alchemy’s tenements that cover the gold prospective part of the Bryah Basin Project
continued under a farm-in and JV arrangement with Billabong (“Billabong Gold JV”), a subsidiary of
Catalyst. Catalyst continued with geotechnical work at Hermes South and Central Bore and completion
of regional soil sampling campaigns.
In New South Wales, remodelling of the structural controls of the Yellow Mountain Mine workings was
undertaken with the aim of updating the geological model to assist with targeting. Alchemy geologists
reviewed historic core holes at Yellow Mountain and work commenced on a maiden resource calculation
for Overflow. Land Access Agreements continue to be progressed for Yellow Mountain to facilitate
drilling access in the near term.
Alchemy’s strategy for the next 12 months is to:
•
•
•
Advance the lithium prospectivity at the Karonie Project.
Undertake targeted drill programs at the Karonie Project with the aim of delineating significant
gold and lithium resources.
Complete ground mapping and structural targeting for lithium and gold in the southern Karonie
Tenure as well as the north-western areas at Roe Hills.
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REVIEW OF ACTIVITIES
•
•
•
•
Unlock the gold, base metal and battery metal potential of the Lachlan/Cobar Projects through
systematic exploration and targeted drill campaigns with a focus on Yellow Mountain, Overflow,
Melrose and West Lynn Projects.
Closely monitor exploration and Hermes South activities undertaken by Billabong within the Bryah
Basin JV.
Undertake reviews and detailed reporting of Sandfire funded exploration for gold and base metals
deposits within the Bryah Basin JV.
Continue to enhance the Company’s position through strategic investment decisions and
evaluation of quality advanced project opportunities throughout Australia.
KARONIE PROJECT (WA) (Alchemy 100%)
The Karonie Project now includes 15 exploration licences covering 1,190km² of highly prospective
mineralised structures within Kurnalpi Terrain greenstones 100km east of Kalgoorlie. The tenements are
located along strike of Silver Lake Resources’ (ASX: SLR) (“Silver Lake”) Aldiss Mining Centre, are within
50km of Silver Lake’s Randalls processing plant, and cover 38km of the under-explored, gold endowed
Claypan Shear Zone commencing just 12km along strike to the south of Ramelius Resources’ (ASX: RMS)
Lake Roe deposit.
During the period, work focussed on mapping, sampling and drilling of the new lithium prospects of
Cherry, Hickory, Mesquite, Pecan and Taupo North. This included multiple rounds of detailed mapping,
infill soil sampling and rock-chip sampling. In addition, a significant program of first pass regional soil
sampling across the Karonie tenure was completed which returned anomalous lithium and pathfinder
results at the new Red Oak and Alder prospects. RC drill testing at the Hickory Prospect was conducted
in late 2022 and confirmed the presence of spodumene and lepidolite minerals and demonstrated that
the area sits within a fertile LCT pegmatite system. A follow-up program of RC drilling was conducted
in June 2023 and confirmed the presence of lithium bearing pegmatites at the new Taupo North
prospect.
Native title HPAs were signed over Alchemy’s 15 exploration licences covering the Karonie and Lake
Rebecca tenure1. The Kakarra Part A & B (“Kakarra”) native title claim covers a significant area, and
importantly covers the Cherry, Hickory, Mesquite and Pecan lithium target areas. The Nyalpa Pirniku
native title claim covers several granted exploration licences and licence applications at Alchemy’s Lake
Rebecca Project. The HPAs pave the way for a productive and collaborative relationship with the Kakarra
and Nyalpa Pirniku People. The HPAs ensure that all exploration on the tenement will be undertaken
with the Traditional Owners' knowledge and fully informed consent and enables Alchemy to comply
with its heritage protection obligations now and in the future.
1 Refer to ALY ASX announcement dated 7 September 2022 ‘Native Title Agreements Executed - Karonie & Lake Rebecca’
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REVIEW OF ACTIVITIES
Figure 2: Alchemy Tenements with Kakarra A & B and Nyalpa Pirniku Native Title claim applications
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REVIEW OF ACTIVITIES
Karonie mapping and infill soil sampling: Detailed mapping and rock-chip sampling was completed at
the Cherry, Hickory, Mesquite and Pecan prospects. The program targeted a number of objectives
including: i) mapping additional pegmatite bodies; ii) identifying zonation within the pegmatites to
identify the most prospective zones; iii) obtaining additional surface rock-chip samples; and iv) infilling
the existing soil geochemistry on a 100m x 40m pattern. The mapping identified numerous additional
pegmatites with the overall mapped dimensions of the zone increasing to 7.3km x 1.5km.
A broad zonation has been recognised, trending from outer zones of high rubidium anomalism in
proximity to the Cherry prospect, to tantalum rich (and lower rubidium) zones at Hickory. In particular,
the strongest zones of tantalum mineralisation (122ppm Ta) occur at the northern end of mapped
pegmatites at Hickory where these trend under cover.
Additional infill soil sampling and rock chip sampling programs were completed in 2022 and early 2023
over the Cherry, Hickory and Pecan prospects. The infill soils were used to gain a better understanding
of the high tenor anomalism that was identified in the regional 400m x 400m soil geochemistry earlier
in the year.
Assay results highlighted a coincident high-level lithium, beryllium, tantalum and tin anomaly in the
north end of the Hickory prospect, displaying common pathfinder elements for LCT-pegmatites shown
in Figure 3.
Figure 3: Cherry, Hickory, Pecan and Mesquite prospects in relation to the Cardunia Granite
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REVIEW OF ACTIVITIES
Roe Hills and Taupo Soil Sampling: Roe Hills lies along a distinctive structural trend from the pegmatite
field that hosts the Manna Lithium deposit 5km to the north-east. Geological Survey of Western
Australia (“GSWA”) mapping has identified a high density of narrow plagioclase dykes, porphyritic dykes
and quartz veins mapped adjacent to the granite contact zone. Multi-element soil sampling conducted
by Alchemy in 2018-2020 highlighted multiple areas of low-level lithium anomalism and coincident
pathfinder anomalism across a broad strike extent. Mapped dykes appear to have a parallel north-south
strike extent, parallel to the greenstone/granite contact, however most of the area around the known
mapped dykes are covered by alluvium and it is likely that these areas are far more extensive than the
known outcrops. Soil sampling programs were originally targeting gold mineralisation and as a result,
coverage of the prospective areas is limited. Follow up soil sampling was completed targeting lithium
in 2023 on a 400m x 400m offset grid spacing2. Results are outlined in Figure 4 and show multiple large-
scale anomalies at Roe Hills within a 12km x 6km zone and second area of 3.5km x 3.5km, and a further
3km x 1.5km zone of anomalism at Taupo. Analysis of the pathfinder elements showed elevated Sn and
Ga anomalism in these samples which correlates with the lithium anomalism in soils which was noted
to be associated with the spodumene pegmatites at Hickory. Infill sampling will be required to further
assess these targets as well as detailed mapping.
Figure 4: Soil sampling results at Roe Hills and Taupo prospects
2 Refer to ALY ASX announcement dated 19 May 2023 ‘Lepidolite and Spodumene Discovered on New Target Areas’
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REVIEW OF ACTIVITIES
Regional Soil Sampling – New Prospects identified at Red Oak and Alder
A large regional soil sampling program was completed in the second half of 2022. The aim was to
explore for indications of potential LCT pegmatite mineralisation at Karonie in the southern tenement
areas where little or no previous lithium exploration had taken place. The soil sampling involved the
collection of 1,471 samples with samples submitted for analysis in late June 2022. Alchemy’s Karonie
tenure covers over 60km of strike extent along the contact zone of a regional granite. These areas sit
within a prospective “Goldilocks Zone”, a defined corridor in which LCT pegmatites exist. This zone lies
outboard of the granitic terrain and within the greenstone belts and is largely untested for battery
minerals and in many cases for gold (Figure 5).
Soil sampling was undertaken over three large areas on a 400m x 400m spaced offset grid sampling
pattern. Samples were submitted for 4-acid digest multi-element analysis for 48 elements. Assays were
received in September 20223 showing broad, but coherent and coincident beryllium, rubidium and tin
anomalism as well as associated lower-level lithium and tantalum values over two large new prospect
areas, which sit in proximity to the larger regional granites and adjacent to numerous smaller granite
bodies. The new prospects have been designated Red Oak and Alder. Ground truthing of these
anomalies was conducted in early 2023 and revealed numerous target areas for detailed follow up.
Figure 5: Lithium anomalism and mapped pegmatites at the new prospects
3 Refer to ALY ASX announcement dated 13 September 2022 ‘Soil Sampling Identifies Belt Scale Lithium Potential’
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REVIEW OF ACTIVITIES
RED OAK PROSPECT
Red Oak is located approximately 40km south of the Cherry and Hickory prospects. Soil sampling was
designed to test the prospective Goldilocks Zone adjacent to a large regional granite, as well as a smaller
granite intrusive.
Red Oak soil sampling results returned a 12km x 5km LCT pathfinder element soil anomaly defined by
400m x 400m offset soil sampling. Soil geochemistry results have confirmed coincident beryllium, tin
and rubidium and lower-level tantalum and lithium results over this area. The relationship between the
pathfinders and the lower-level lithium results is unclear at this stage, however GSWA mapping notes
the abundance of salt lakes adjacent to the prospect (with less weathered cover to the east), which may
have resulted in near surface weathering and/or possible transported cover in some areas.
ALDER PROSPECT
Alder is located approximately 18km south of Red Oak and 60km south of the Cherry and Hickory
prospects. Soil sampling was designed to test the prospective Goldilocks Zone adjacent to regional
granites. Soil geochemistry results have highlighted a coincident low-level lithium and higher-level
beryllium, tin and rubidium anomaly over a strike length of 15km x 5km. Lithium values exhibit low level
but very broad zones of anomalism (>30ppm Li). GSWA mapping interprets large portions of this area
to have residual material with calcrete and siliceous duricrust which could impact on the tenor of the
results.
Figure 6: Regional soil geochemical assays for Red Oak and Alder (Li, Be)
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REVIEW OF ACTIVITIES
Figure 7: Regional soil geochemical assays for Red Oak and Alder (Sn, Rb, Ga, Ta)
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REVIEW OF ACTIVITIES
Karonie Gravity Survey
A large and detailed gravity survey aimed at better defining lithium targets at Karonie was conducted
in early 2023. At Hickory the lower density pegmatites intrude into higher density mafics as shown in
the customised processed gravity image in Figure 84. Pegmatites are interpreted as the gravity lows that
trend towards the north from the existing pegmatite drill intercepts. Known pegmatite locations from
drilling and mapping were used to interpret the extensions. Multiple previously unknown pegmatite
targets have been generated as well as numerous large gravity lows which have been flagged as priority
target areas for testing. Importantly, known outcropping pegmatites occur at both Hickory and Pecan,
trending north-south and north-east/south-west respectively. The gravity survey data shows analogous
targets trending under the alluvial channel linking the two prospect areas over a 5.4km strike extent.
Figure 8: Karonie Project detailed gravity survey area
4 Refer to ALY ASX announcement dated 26 April 2023 ‘Gravity Survey Reveals High Priority Drill Targets’
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REVIEW OF ACTIVITIES
KARONIE RC DRILL PROGRAM
First pass RC drill testing of multiple high priority lithium targets was completed in November 20225.
The program consisted of 30 holes for 4,092m to test the outcropping pegmatites at Hickory that had
been identified previously by field mapping and sampling.
In addition, zones were targeted under thin alluvial cover to the north. Geological logging defined
multiple zones of pegmatites in drillholes, with these zones up to 700m strike extent within the northern
part of the prospect. The pegmatites are interpreted to extend at least 150m from surface and remain
open with varying widths from 1m up to 27m downhole. The zone remains open along strike and to the
west. Best results included HYRC006 which intercepted visual spodumene and lepidolite.
Best results included6:
HYRC006:
• 67-68m - 1m @ 0.12% Li2O
• 72-74m - 2m @ 0.11% Li2O
•
161-164m - 3m @ 0.27% Li2O, 53.2ppm Ta2O₅
Including 1m @ 0.47% Li2O, 70.3ppm Ta2O₅ (162-163m)
•
•
174-175m - 1m @ 0.12% Li2O, 23.7ppm Ta2O₅
178-179m - 1m @ 0.18% Li2O, 23.1ppm Ta2O₅
HYRC001:
• 39-40m - 1m @ 0.17% Li2O, 37.1ppm Ta2O₅
HYRC016:
• 63-64m - 1m @ 0.12% Li2O, 34.7ppm Ta2O₅
HYRC034:
•
111-112m - 1m @ 0.1% Li2O, 33.0ppm Ta2O₅
HYRC037:
• 70-71m - 1m @ 0.1% Li2O, 37.1ppm Ta2O₅
Geology
The geology consisted of Archean volcanic basalts, intrusive pyroxene phyric dolerites, younger granitic
pegmatites and feldspar porphyries which crosscut the older stratigraphy. The dolerites thicken toward
the north as they approach a north-east striking shear zone. The pegmatites, which are the target host
rock for LCT mineralisation, appear to thicken when they intersect the coarser grain dolerites and are
fractionated internally.
5 Refer to ALY ASX announcement dated 14 November 2022 ‘RC Drilling Completed on Karonie Lithium Targets’
6 Refer to ALY ASX announcement dated 13 January 2023 ‘Spodumene and Lepidolite Identified in Pegmatites at Karonie’
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REVIEW OF ACTIVITIES
Figure 9: Completed RC drilling at the Hickory Prospect with Li20 intercepts >0.1%
Figure 10: Hickory Cross Section 6570780mN
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Figure 11: RC chips for 140-160m in HYRC006 with significant Li20 assays labelled in red
Mineralisation
Spodumene and lepidolite mineralisation was identified visually in hole HYRC006 and confirmed via
chemical assays, ultraviolet response, and LIBS (laser ablation) analysis⁵. The spodumene occurs as white
coloured fine acicular crystals from 5-10mm length (Figure 12), with lepidolite noted in drill samples as
dark purple crystals.
Figure 12: Spodumene crystals in HYRC006 (162-163m) under 250nm ultraviolet light (1m @ 0.47%
Li20)
Taupo North RC drilling – new zones of pegmatites discovered: A second program of RC drilling was
undertaken in mid-2023 with 19 holes drilled for 2,562m with additional narrow pegmatites intercepted
at depths up to 75m downhole.
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Taupo North sits along the structural trend which hosts the Karonie gold deposits to the north of the
Aldiss Mining Operations owned by Silver Lake. Most of the area to the north of Alchemy’s Taupo
prospect is covered by a thin cover of alluvium with no history of lithium exploration. Multi-element soil
sampling conducted by Alchemy in early 2023 showed a broad zone of lithium in soils anomalism which
extends for approximately 3km x 1.5km8. In addition, recent re-logging of drill samples has recognised
amazonite pegmatites in two historic drillholes in the north of the Taupo prospect.
Assay results from the drill program show multiple holes with elevated lithium and pathfinder
anomalism across holes TNRC001, TNRC005 and TNRC007. Best intercepts included TNRC007 1m @
0.1% Li20, 13ppm Ta205, 56ppm Cs, 2970ppm Rb and 180ppm Sn. Assay results are shown in
Figure 13.
The pegmatites coincide with recent rock chips and soil sampling with anomalous zones extending for
a further 3.5km to the south towards Taupo. The zones occur adjacent to a gabbro body to the west,
which the Company believes may hold additional exploration upside as the pegmatites are observed to
thicken in the high pyroxene dolerite and gabbro units, similar to Hickory Prospect. Soil sampling has
commenced to the south and east of this area aiming to infill and extend the geochemical footprint
with the aim of better defining future drill targets.
Further drilling will be required to explore for additional pegmatites under cover to the north of Hickory
toward Pecan, due to the presence of a significant alluvial channel, approximately 3km in strike which
masks any geochemical signature.
LCT Pegmatites discovered north of Mesquite and Taupo North: Pegmatites are interpreted as the
gravity lows that trend towards the north from the existing pegmatite drill intercepts shown in Figure
13. Known pegmatite locations from drilling and mapping were used to interpret the extensions.
Multiple previously unknown pegmatite targets have been generated as well as numerous large gravity
lows which have been flagged as priority target areas for testing. Importantly, known outcropping
pegmatites occur at both Hickory and Pecan, trending north-south and north-east/south-west
respectively. The gravity survey data shows analogous targets trending under the alluvial channel with
a total strike extent of around 5.4km.
Mesquite Prospect: Field checking of the gravity targets was completed in early May 2023 and 12 rock-
chip samples were taken from various locations around the high priority target areas. A previously
unmapped pegmatite was discovered and was found to contain coarse lepidolite and traces of
spodumene which are shown in Figure 14. Assay results returned peak results of 2,723ppm Li20, 167ppm
Cs, 2,930ppm Rb and 62.8ppm Ta2O5
7.
8 Refer ALY ASX Announcement dated 19 May 2023 ’Lepidolite and Spodumene Discovered on New Target Areas’
7 Refer ALY ASX Announcement dated 19 May 2023 ’Lepidolite and Spodumene Discovered on New Target Areas’
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Figure 13: Karonie lithium prospects with detailed gravity survey and selected rock-chip assay results
Taupo North Prospect: This prospect sits along the structural trend which hosts the Karonie gold
deposits to the north of the Aldiss Mining Operations owned by Silver Lake. Most of the area to the
north of Alchemy’s Taupo prospect is covered by a thin cover of alluvium with no history of lithium
exploration. Multi-element soil sampling conducted by Alchemy in early 2023 showed a broad zone of
lithium in soils anomalism which extends for approximately 3km x 1.5km. In addition, recent re-logging
of drill samples has recognised amazonite pegmatites in two historic drillholes in the north of Taupo.
Rock chips returned highly elevated pathfinder anomalism shown in Figure 14.
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REVIEW OF ACTIVITIES
Figure 14: Rock chip9 showing lepidolite crystals (LHS), Pegmatite at its field location (RHS)
LAKE REBECCA PROJECT (WA) (Alchemy 100%)
The Lake Rebecca Project includes 10 exploration licences covering 570km2 of Archean greenstones
in the Eastern Goldfields of Western Australia. The Project is located 100km east of Kalgoorlie in a
highly prospective geological setting, covering greenstones, numerous internal granites and known
gold bearing structures. It is located just 10km southeast of Northern Star Resources’ (ASX: NST)
Carosue Dam deposit and 6km west of Ramelius Resources’ (ASX: RMS) Rebecca deposit.
Alchemy commenced first pass Project wide regional reconnaissance sampling, mapping and
targeting review in late 20228. The review focussed on generating “camp scale” prospective areas for
follow-up based on structural and lithological criteria. The study outlined seven target areas for lithium
exploration and five target areas for gold exploration. Reconnaissance and desktop mapping identified
the presence of pegmatites and granite dykes in the region which require additional mapping and
further follow-up. No lithium exploration has been undertaken historically on these tenements.
8 Refer to ALY ASX announcement dated 19 May 2023 ‘Lepidolite and Spodumene Discovered on New Target Areas’
ANNUAL REPORT 30 JUNE 2023
Page 20 of 75
REVIEW OF ACTIVITIES
Figure 15: Lake Rebecca tenements showing current lithium and gold targets
Lake Rebecca targeting review and reconnaissance field work: Alchemy has completed a targeting
review on the Lake Rebecca tenement package. The study confirmed the presence of regional scale
flexures on both the Keith Kilkenny and Claypan Shear Zones, and proximity to nearby large scale >1Moz
gold deposits. Targets generated from this review are shown in Figure 15.
Alchemy geologists conducted a reconnaissance visit to Lake Rebecca in late November 2022. Multiple
feldspar rich granite dykes were mapped throughout the tenement package adjacent to the small
regional granite intrusions within the interpreted Goldilocks Zone for pegmatite formation, and a
coarse-grained quartz-feldspar pegmatite was noted during the recent field reconnaissance visit.
Several hand specimen samples are shown in Figure 16 below. Two samples exhibited elevated
pathfinder elements which will be followed up in the next reconnaissance program.
ANNUAL REPORT 30 JUNE 2023
Page 21 of 75
REVIEW OF ACTIVITIES
Figure 16: Pegmatites and granite dykes recently mapped at Lake Rebecca
LACHLAN/COBAR BASIN PROJECTS (NSW) (Alchemy 80%)
The Lachlan/Cobar Basin Projects cover an area of 674km² of the Central Lachlan Orogen in New South
Wales and comprise four project areas prospective for Cobar-style epithermal gold and base metals
and copper-gold porphyry mineralisation, and nickel-cobalt-alumina mineralisation. The Lachlan/Cobar
Basin Projects consist of the Overflow Gold-Base Metal Project, the Yellow Mountain Copper-Gold
Project, the West Lynn Nickel-Cobalt-Alumina Project, and the Eurow Copper-Gold Project, each
containing multiple drill ready gold and/or base metal and/or nickel cobalt targets. The projects form
part of a farm-in and JV with Develop Global (ASX: DVP).
Yellow Mountain
During the year, remodelling of the structural controls of the Yellow Mountain mine workings was
undertaken with the aim of updating the geological model to assist with targeting. A review of historic
core was accessed at the Londonderry Core Library in NSW to further enhance the geological
understanding of the area. Land Access Agreements continue to be progressed.
ANNUAL REPORT 30 JUNE 2023
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REVIEW OF ACTIVITIES
No drilling has taken place on this prospect since 1986, despite significant occurrences of high-grade
copper and lead mineralisation. The Yellow Mountain mine was worked from the mid-1800s. Accurate
production records do not exist for the mine; however, the mine reportedly produced 2.74t of lead,
360kg of copper and 6.2kg of silver from an open pit. The Yellow Mountain Mine was last drilled in
1986, most of the historic drilling was shallow and many of the drill holes were not assayed for gold.
Historic drilling and sampling at the Yellow Mountain mine (Figure 17) returned broad zones of copper
and gold mineralisation including:
• Mullock dump stockpile sample assay of 7.15% Cu, 6.4% Pb and 1.08g/t Au
• 24.4m @ 1.12% Cu, 1.19% Pb and 1.02% Zn from surface (YP05A)
• 52m @ 0.54g/t Au, 0.31% Cu, 35g/t Ag, 1.15% Pb and 1.28% Zn from 14m (PYM011)
•
16.5m @ 1.08g/t Au, 0.48% Cu, 52g/t Ag, 2.04% Pb and 3.48% Zn from 198m (YD13)
Sampling of mullock dumps undertaken in 2001 by Golden Cross Resources Ltd (ASX: GCR) returned
assays of 7.15% Cu, 6.4% Pb and 1.08g/t Au. These samples are in the area around the historic Yellow
Mountain mine shaft which was operated in the early-mid 1930s. Alchemy sees this as significant,
showing the potential for high grade mineralisation at the prospect.
The Yellow Mountain Project is an important strategic landholding for Alchemy with a contiguous land
position along strike from the Mineral Hill mine, recently acquired by Kingston Resources Ltd (ASX:
KSN).
Figure 17: Yellow Mountain Mine Prospect location maps
ANNUAL REPORT 30 JUNE 2023
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REVIEW OF ACTIVITIES
BRYAH BASIN PROJECT (WA) (10-20% Alchemy)
Alchemy’s Bryah Basin Project comprises a 488km2 ground package located 130km northeast of
Meekatharra, in the highly prospective Bryah Basin region of Western Australia. The Project is located
just 30km along strike to the southwest of leading Australian base metal producer Sandfire’s high-grade
DeGrussa and Monty copper-gold deposits, and adjacent to Peak Hill where about 1Moz of gold has
been mined from several deposits. Alchemy retains a 10% to 20% interest in the base metal and gold
prospective Bryah Basin Project through farm-in and JV agreements with Sandfire and Billabong.
Alchemy also retains a 1% Net Smelter Royalty over 20,000oz of gold recovered from the Hermes
Deposit (4.7Mt @ 2.0g/t for 303,000oz Au) once production reaches 70,000oz9.
Alchemy remains free-carried on further exploration to completion of a Pre-Feasibility Study, and then
carried on an interest-free deferred basis for a further $5M of Definitive Feasibility Study expenditure,
with the deferred amount to be repaid from 50% of Alchemy’s share of free cash flow earned through
production.
Sandfire conducted no field exploration during the first half of the financial year. Sandfire has engaged
external consultants to complete a basin wide study over the JV tenure. The work included the
construction of a 3D basin scale model and the engagement of geochemical and structural geologists.
This work was completed earlier in 2023 and Sandfire geologists are now reviewing the data.
Gold Exploration (Alchemy 20%)
Exploration of Alchemy’s tenements that cover the gold prospective part of the Bryah Basin Project
continued under the Billabong Gold JV farm-in and JV arrangement, with Billabong now having earned
a 70-80% interest. Catalyst recently acquired all of the issued and outstanding common shares in the
capital of Superior Gold by way of a court-approved plan of arrangement under the Business
Corporations Act (Ontario). The plan was completed on 30 June 2023.
Under the terms of the Billabong Gold JV, Alchemy’s interest is carried on an interest-free deferred basis
to production, with Alchemy to repay the deferred amount from 50% of its share of free cash flow from
production following commencement of mining.
Work completed by the Billabong Gold JV during the period included:
• Geotechnical drilling at Hermes South and Central Bore
• Completion of soil sampling (2,582 soil samples) across eight tenements - Exploration Licenses
52/1668, E52/1678, E52/1723, E52/1730, E52/1731, E52/1852, E52/3408, and Prospecting Licence
P52/1577
• An Extension of Term application for Exploration Licences 52/1723-1 and 52/1730
• Completion of Central Bore flora study by Mattiske Consulting
• Completion of Central Bore desktop fauna study by Biologic
• Completion of Central Bore desktop short range endemic invertebrate survey by Bennelongia
Environmental Consultants
9 Refer to ALY ASX announcement dated 24 February 2015 ‘Purchase of Reserve Payment from Troy’
ANNUAL REPORT 30 JUNE 2023
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REVIEW OF ACTIVITIES
• Completion of Central Bore desktop subfauna study by Bennelongia Environmental
Consultants
• Completion of Central Bore soils and landform study by MBS Environmental
• Completion of Central Bore waste rock study by MBS Environmental
• Completion of Hermes South supplementary flora study by Native Vegetation Solutions
•
Progressing of Hermes South Mining Proposal and Mine Closure Plan
• Approval of Hermes South Native Vegetation Clearing Permit granted 23 December 2022
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr James Wilson, who is the
Chief Executive Officer of Alchemy Resources Limited and holds shares and options in the Company. Mr Wilson is a Member of the
Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits
under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint
Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code
2012’). Mr Wilson consents to the inclusion in this report of the matters based on his information in the form and context in which it
appears.
The information in this report that relates to Mineral Resources at the West Lynn/Summervale Nickel-Cobalt and Summervale-
Alumina Deposit is based on information compiled by Stephen Godfrey, who is an employee of Resource Evaluation Services Pty Ltd,
a consultant to Alchemy Resources Limited. Mr Godfrey is a Fellow of the Australasian Institute of Mining and Metallurgy and a
member of the Australian Institute of Geoscientists, and has sufficient experience of relevance to the styles of mineralisation and the
types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the JORC Code 2012. Mr Godfrey consents to the inclusion in this report of the matters based on his information in the
form and context in which it appears.
The information in this report that relates to Mineral Resources at the Hermes South Gold Deposit is based on information compiled
by Mr Stephen Hyland, a geological consultant working for Superior Gold Inc. Mr Hyland is a Fellow of The Australasian Institute of
Mining and Metallurgy, and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under
consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code
2012. Mr Hyland consents to the inclusion in this report of the matters based on his information in the form and context in which it
appears.
The information in this report that relates to Karonie Mineral Resources is based on information compiled by Richard Maddocks, a
Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Richard Maddocks is an employee of
Auranmore Consulting. Richard Maddocks has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Richard Maddocks consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcements and, in the case of estimates of Mineral Resources and Ore Reserves, that all material assumptions
and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have
not been materially modified from the original market announcements.
Forward Looking Statements
This report may include forward looking statements. Forward looking statements are only predictions and are subject to risks,
uncertainties and assumptions which are outside the control of Alchemy. Actual values, results or events may be materially different
to those expressed or implied in this report. Given these uncertainties, recipients are cautioned not to place reliance on forward looking
statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any
continuing obligations under any applicable law and the ASX Listing Rules, Alchemy does not undertake any obligation to update or
revise any information or any of the forward looking statements in this presentation of any changes in events, conditions or
circumstances on which any such forward looking statement is based.
ANNUAL REPORT 30 JUNE 2023
Page 25 of 75
DIRECTOR’S REPORT
Your Directors present their report on the consolidated entity consisting of Alchemy Resources Limited
(“the Company”) and its subsidiaries (“the Group” or “the Consolidated Entity”) at the end of the year
ended 30 June 2023.
DIRECTORS
The following persons were directors of Alchemy Resources Limited during the whole of the financial
year and up to the date of this report unless noted otherwise:
Lindsay Dudfield, Non-Executive Chair
Liza Carpene, Non-Executive Director
Anthony Ho, Non-Executive Director
PRINCIPAL ACTIVITIES
During the year, the principal activity of the Group was exploration for gold, lithium, base metals and
cobalt. During the year, there was no change in the nature of this activity.
FINANCIAL RESULTS
The consolidated loss of the Group after providing for income tax for the year ended 30 June 2023 was
$712,569 (2022: $806,117).
DIVIDENDS
No dividends have been paid or declared since the start of the financial year. No recommendation for
the payment of a dividend has been made by the Directors.
OPERATIONS AND FINANCIAL REVIEW
Information on the operations of the Group and its prospects is set out in the “Review of Activities”
section of this Annual Report.
MATERIAL BUSINESS RISKS
The Company operates in an environment where it is exposed to a range of business risks that have the
potential to impact on the Company’s business plans and strategy, and financial position.
The Board and management make every effort to identify material risks. The Company aims to manage
the exposure to these risks by carefully planning its activities and implementing risk control measures.
Some of the risks are, however, highly unpredictable and the extent to which the Board can effectively
manage them is limited.
Tenure and access risk
Applications
While the Company does not anticipate there to be any issues with the grant of its tenement
applications (see Tenement Schedule), there can be no assurance that the application (or any future
applications) will be granted. While the Company considers the risk to be low, there can also be no
assurance that when the relevant tenement is granted, it will be granted in its entirety. Some of the
tenement areas applied for may be excluded.
ANNUAL REPORT 30 JUNE 2023
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DIRECTOR’S REPORT
Renewal
Mining and exploration tenements are subject to periodic renewal. The renewal of the term of granted
tenements is subject to the discretion of the relevant authority. Renewal conditions may include
increased expenditure and work commitments or compulsory relinquishment of areas of the tenements.
The imposition of new conditions or the inability to meet those conditions may adversely affect the
operations, financial position and/or performance of the Company.
Access
A number of the tenements overlap certain third party interests that may limit the Company’s ability to
conduct exploration and mining activities, including private land, Crown Reserves, areas on which native
title is yet to be determined and other forms of tenure for railways, pipelines and similar third party
interests. Where the Company's projects overlap private land, exploration and mining activity on the
projects may require authorisation or consent from the owners of that land. The Company may be
required to enter into land access agreements and carry out heritage clearance surveys before
implementing its proposed exploration program. The Company’s current proposed exploration
program is not impacted by the known sites of registered aboriginal heritage significance.
Exploration risk
Potential investors should understand that mineral exploration and development are high-risk
undertakings. There can be no assurance that exploration of the Company’s projects, or any other
tenements that may be acquired in the future, will result in the discovery of an economic ore deposit.
Even if an apparently viable deposit is identified, there is no guarantee that it can be economically
exploited. The success of the Company will also depend upon the Company having access to sufficient
development capital, being able to maintain title to its projects and obtaining all required approvals for
its activities. In the event that exploration programs prove to be unsuccessful this could lead to a
diminution in the value of the tenements, a reduction in the cash reserves of the Company and possible
relinquishment of its projects.
Climate change risk
The operations and activities of the Company are subject to changes to local or international compliance
regulations related to climate change mitigation efforts, specific taxation or penalties for carbon
emissions or environmental damage and other possible restraints on industry that may further impact
the Company. While the Company will endeavour to manage these risks and limit any consequential
impacts, there can be no guarantee that the Company will not be impacted by these occurrences.
Climate change may also cause certain physical and environmental risks that cannot be predicted by
the Company, including events such as increased severity of weather patterns, incidence of extreme
weather events and longer-term physical risks such as shifting climate patterns. All these risks associated
with climate change may significantly change the industry in which the Company operates.
Reliance on key personnel risk
The Company’s future depends, in part, on its ability to attract and retain key personnel. It may not be
able to hire and retain such personnel at compensation levels consistent with its existing compensation
and salary structure. Its future also depends on the continued contributions of its key management and
technical personnel, the loss of whose services would be difficult to replace. In addition, the inability to
continue to attract appropriately qualified personnel could have a material adverse effect on the
Company’s business.
ANNUAL REPORT 30 JUNE 2023
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DIRECTOR’S REPORT
Environmental risk
The operations and proposed activities of the Company are subject to Australian laws and regulations
concerning the environment. As with most exploration projects and mining operations, the Company’s
activities are expected to have an impact on the environment, particularly if advanced exploration or
mine development proceeds. It is the Company’s intention to conduct its activities to the highest
standard of environmental obligation, including compliance with all environmental laws. The disposal
of mining and process waste and mine water discharge are under constant legislative scrutiny and
regulation. There is a risk that environmental laws and regulations become more onerous making the
Company’s operations more expensive. Approvals are required for land clearing and for ground
disturbing activities. Delays in obtaining such approvals can result in the delay to anticipated exploration
programmes or mining activities.
Native title risk
The Native Title Act 1993 recognises and protects the rights and interests in Australia of Aboriginal and
Torres Strait Islander people in land and waters, according to their traditional laws and customs. There
is significant uncertainty associated with Native Title in Australia and this may impact on the Company's
operations and future plans. The Company may be required to enter into land access agreements to
undertake its proposed exploration program on the tenements and heritage clearance surveys before
implementing its proposed exploration program. The Company’s current proposed exploration
program is not impacted by the known sites of registered aboriginal heritage significance.
Economic risk
General economic conditions, introduction of tax reform, new legislation, movements in interest and
inflation rates and currency exchange rates may have an adverse effect on the Company, as well as on
its ability to fund its operations.
Additional requirements for capital risk
The Group has considered its ability to continue as a going concern for at least the next 12 months from
the approval of these financial statements, taking into consideration an estimation of the expected cash
flows based on the needs of the business. This assessment assumes the Group will be able to realise
assets and discharge liabilities in the ordinary course of business beyond this period. The Board does
recognise that future capital requirements depend on numerous factors, with additional equity
financing causing a dilution of shareholdings and debt financing, if available, potentially involving
restrictions on financing and operating activities. If the Company is unable to obtain additional financing
as needed, it may be required to reduce the scope of its operations. There is however no guarantee
that the Company will be able to secure any additional funding or be able to secure funding on terms
favourable to the Company.
FINANCIAL
Exploration and evaluation costs totalling $304,042 (2022: $249,238) were written off during the year in
accordance with the Group’s accounting policy.
As at 30 June 2023, the Group had net assets of $14,621,911 (2022: $9,944,794) including cash and cash
equivalents of $5,005,228 (2022: $2,008,082).
ANNUAL REPORT 30 JUNE 2023
Page 28 of 75
DIRECTOR’S REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
There has not arisen in the interval between the end of the financial year and the date of this report any
other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors,
to affect significantly the operations, the results of those operations, or the state of affairs of the Group
in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Directors are not aware of any developments that might have a significant effect on the operations
of the Group in subsequent financial years not already disclosed in this report.
ENVIRONMENTAL REGULATION
The Group is subject to significant environmental regulation in respect of its exploration activities.
Tenements in Western Australia and New South Wales are granted subject to adherence to
environmental conditions with strict controls on clearing, including a prohibition on the use of
mechanised equipment or development without the approval of the relevant Government agencies,
and with rehabilitation required on completion of exploration activities. These regulations are controlled
by the Department of Mines, Industry Regulation and Safety (Western Australia) and the Department
of Planning and Environment (New South Wales).
Alchemy Resources Limited conducts its exploration activities in an environmentally sensitive manner
and the Group is not aware of any breach of statutory conditions or obligations.
Greenhouse gas and energy data reporting requirements
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act
2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors
have assessed that there are no current reporting requirements for the year ended 30 June 2023,
however reporting requirements may change in the future.
ANNUAL REPORT 30 JUNE 2023
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DIRECTOR’S REPORT
INFORMATION ON DIRECTORS & MANAGEMENT
The following information is current as at the date of this report.
L Dudfield, Non-Executive Chair (appointed Director 25 November 2011, Chair since 1 June 2017)
Experience and expertise
Mr Dudfield is a qualified geologist with over 40 years’ experience exploring for
gold and base metals in Australia and abroad, including close involvement with
a number of greenfields discoveries. He was a founding director of Jindalee
Resources Limited (ASX: JRL) and is currently Executive Director of JRL. Mr
Dudfield is a member of the Australasian Institute of Mining and Metallurgy, the
Australian Institute of Geoscientists, the Geological Society of Australia and the
Society of Economic Geologists.
Other current directorships
Executive Director of Jindalee Resources Limited (appointed 1996)
Non-Executive Director of Energy Metals Limited (ASX: EME) (appointed 2004)
Non-Executive Director of Dynamic Metals Limited (ASX: DYM) (appointed
2022)
Former directorships in last 3 years None
Special responsibilities
Member of the Audit Committee
Interests in shares and options
Ordinary Shares – Alchemy Resources Limited
Unlisted Options – Alchemy Resources Limited
60,880,611
2,000,000
L Carpene, Non-Executive Director (appointed 18 March 2015)
Experience and expertise
Other current directorships
Ms Carpene has worked in the resources industry for more than 20 years and
has significant experience in acquisitions, corporate administration, HR, legal, IT
and stakeholder relations. Ms Carpene spent five years on the Executive Team
of Northern Star Resources Limited (ASX: NST) as Company Secretary and Head
of Environment and Social Responsibility ceasing in February 2018.
Prior to NST, Ms Carpene was Company Secretary/CFO for listed explorers
Venturex Resources and Newland Resources, and previously held various site
and Perth based management roles with Great Central Mines, Normandy
Mining, Newmont Australia, Agincourt Resources and Oxiana.
Non-Executive Director of Mincor Resources NL (appointed 2018)
Non-Executive Director of RLF Agtech Limited (ASX: RLF) (appointed 2021)
Former directorships in last 3 years None
Special responsibilities
Member of the Audit Committee
Interests in shares and options
Ordinary Shares – Alchemy Resources Limited
Unlisted Options – Alchemy Resources Limited
2,916,666
2,000,000
ANNUAL REPORT 30 JUNE 2023
Page 30 of 75
DIRECTOR’S REPORT
A Ho, Non-Executive Director (appointed 25 November 2011)
Experience and expertise
Other current directorships
Mr Ho is a Chartered Accountant and a partner in a consulting firm focused
principally on corporate and financial services to listed companies. He has
significant experience in the resource industry, having served as director and
company secretary of companies listed on ASX.
Non-Executive Director of Australian Agricultural Projects Limited (ASX: AAP)
(appointed 2003)
Non-Executive Director of Mustera Property Group Limited (ASX: MPX)
(appointed 2014)
Former directorships in last 3 years Executive Director of Newfield Resources Limited (ASX: NWF) (from 2011 to 16
Special responsibilities
Chair of the Audit Committee
April 2021)
Interests in shares and options
Ordinary Shares – Alchemy Resources Limited
Unlisted Options – Alchemy Resources Limited
Nil
2,000,000
CHIEF EXECUTIVE OFFICER
Mr Wilson was appointed Chief Executive Officer on 1 January 2021. Mr Wilson is a geologist with more
than 16 years hands on experience in exploration and operational roles, both in Australia and overseas,
covering a wide range of resources including gold, copper, nickel and uranium. Mr Wilson spent the
previous fourteen years working as a metals and mining analyst, with the last five of those years as
Senior Research Analyst – Resources for Argonaut Securities.
Mr Wilson has a Bachelor of Applied Science – Geology and a Graduate Diploma in Financial Analysis
and Valuation and is a Graduate of the Australian Institute of Company Directors.
COMPANY SECRETARY
Ms Terzanidis is a Chartered Secretary, an Associate of the Governance Institute of Australia and holds
a Bachelor of Commerce from Curtin University with majors in Accounting and Corporate & Resources
Administration. Ms Terzanidis is Company Secretary of Jindalee Resources Limited (ASX: JRL) and Joint
Company Secretary of Viridis Mining and Minerals Limited (ASX: VMM).
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors and of each Board committee held during
the year ended 30 June 2023, and the numbers of meetings attended by each Director were:
Director
L Dudfield
L Carpene
A Ho
Board of Directors
A
7
7
7
B
7
7
7
Audit Committee
A
B
2
2
2
2
2
2
A = Number of meetings attended
B = Number of meetings held during the time the Director held office or was a member of the committee during the year
ANNUAL REPORT 30 JUNE 2023
Page 31 of 75
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
The Directors present the Alchemy Resources Limited 2023 remuneration report, outlining key aspects
of the Company’s remuneration policy and framework, and remuneration awarded this year.
The report contains the following sections:
a) Key management personnel covered in this report
b) Remuneration governance and the use of remuneration consultants
c) Executive remuneration policy and framework
d) Relationship between remuneration and the Group’s performance
e) Non-Executive Director remuneration policy
f) Voting and comments made at the Company’s 2022 Annual General Meeting
g) Statutory Performance Indicators
h) Details of remuneration
i)
Service agreements
j) Details of share-based compensation and bonuses
k) Equity instruments held by key management personnel
l)
m) Other transactions with key management personnel
Loans to key management personnel
a) Key management personnel covered in this report
Alchemy’s key management personnel are defined as:
Name
L Dudfield
L Carpene
A Ho
J Wilson
Position
Non-Executive Chair
Non-Executive Director
Non-Executive Director
Chief Executive Officer
b) Remuneration governance and the use of remuneration consultants
The Company does not have a Remuneration Committee. Remuneration matters are handled by
the full Board of the Company. In this respect the Board is responsible for:
•
•
the over-arching executive remuneration framework;
the operation of the incentive plans which apply to executive directors and senior executives
(the Executive Team), including key performance indicators and performance hurdles;
•
remuneration levels of executives; and
• Non-Executive Director fees.
The objective of the Board is to ensure that remuneration policies and structures are fair and
competitive and aligned with the long-term interests of the Company.
In addition, all matters of remuneration are handled in accordance with the Corporations Act 2001
requirements, especially with regard to related party transactions. That is, none of the Directors
participate in any deliberations regarding their own remuneration or related issues.
Independent external advice is sought from remuneration consultants when required, however no
advice was sought during the year ended 30 June 2023.
ANNUAL REPORT 30 JUNE 2023
Page 32 of 75
DIRECTOR’S REPORT
c) Executive remuneration policy and framework
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
•
•
•
•
competitive and reasonable, enabling the Company to attract and retain key talent;
aligned to the Company’s strategic and business objectives and the creation of shareholder
value;
transparent and easily understood; and
acceptable to shareholders.
All executives receive a salary or consulting fees, which is inclusive of superannuation, and from
time to time, equity incentives. The Board reviews executive packages annually by reference to the
executive’s performance and comparable information from industry sectors and other listed
companies in similar industries.
All remuneration paid to specified executives is valued at the cost to the Group and expensed.
Options and Performance Rights are valued using a Black-Scholes option pricing model and Monte
Carlo simulations model.
d) Relationship between remuneration and the Group’s performance
Emoluments of Directors are set by reference to payments made by other companies of similar size
and industry, and by reference to the skills and experience of Directors. Fees paid to Non-Executive
Directors are not linked to the performance of the Group. This policy may change once the
exploration phase is complete and the Group is generating revenue. At present the existing
remuneration policy is not impacted by the Group’s performance including earnings and changes
in shareholder wealth (e.g., changes in share price).
The Board has set performance indicators, such as movements in the Company’s share price, for
the determination of the Chief Executive Officer emolument as the Board believes this may
encourage performance which is in the long-term interests of the Company and its shareholders.
The Board has structured its remuneration arrangements in such a way it believes is in the best
interests of building shareholder wealth in the longer term and that it is fit for purpose at this time.
The Board believes participation in the Company’s Employee Securities Incentive Plan motivates
key management and executives with the long-term interests of shareholders. Refer note 22 for
more details.
e) Non-Executive Director remuneration policy
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the
Company in the form of a letter of appointment. The letter summarises the Board policies and
terms, including remuneration relevant to the office of the director.
The Board policy is to remunerate Non-Executive Directors at commercial market rates for
comparable companies for their time, commitment and responsibilities. Non-Executive Directors
receive a Board fee but do not receive fees for chairing or participating on Board committees.
Board members are allocated superannuation guarantee contributions as required by law, and do
not receive any other retirement benefits. From time to time, some individuals may choose to
sacrifice their salary or consulting fees to increase payments towards superannuation.
ANNUAL REPORT 30 JUNE 2023
Page 33 of 75
DIRECTOR’S REPORT
The maximum annual aggregate Non-Executive Directors’ fee pool limit is $250,000 and was
approved by shareholders at the Annual General Meeting held on 22 July 2008.
Fees for Non-Executive Directors are not linked to the performance of the Group. Non-Executive
Directors’ remuneration may also include an incentive portion consisting of options, subject to
approval by shareholders.
f) Statutory performance indicators
The Board aims to align executive remuneration to Alchemy’s strategic and business objectives and
the creation of shareholder wealth. The table below shows measures of the Group’s financial
performance over the last five years as required by the Corporations Act 2001. However, these are
not necessarily consistent with the measures used in determining the variable amounts of
remuneration to be awarded to key management personnel. As a consequence, there may not
always be a direct correlation between the statutory key performance measures and the variable
remuneration awarded.
Total comprehensive loss for the year
Loss per share (cents)
Share price at year end
2023
$712,569
0.06
$0.016
2022
$806,117
0.09
$0.013
2021
$524,830
0.08
$0.014
2020
$390,897
0.07
$0.019
2019
$10,282,167
2.36
$0.010
g) Voting and comments made at the Company’s 2022 Annual General Meeting
Alchemy Resources Limited received 99.43% of “yes” votes on its remuneration report for the 2022
financial year. The Company did not receive any specific feedback at the Annual General Meeting
or throughout the year on its remuneration practices.
h) Details of remuneration
The following table shows details of the remuneration received by the Group’s key management
personnel for the current and previous financial year.
Short-term benefits
Post-
employment
benefits
Salary and
fees
Cash
bonus
Non-
monetary
benefit
Super-
annuation
Share-based
payment
Options and
Performance
Rights
$
$
$
$
$
Total
$
Performance
related
%
20,000
240,000
20,000
19,998
299,998
-
-
-
-
-
-
-
29,021
25,200
-
-
-
-
23,342
37,775
23,342
23,342
43,342
331,996
43,342
43,340
53.9%
11.4%
53.9%
53.9%
29,021
25,200
107,802
462,021
Name
2023
Directors and
CEO
L Dudfield
J Wilson
L Carpene
A Ho
Totals
ANNUAL REPORT 30 JUNE 2023
Page 34 of 75
DIRECTOR’S REPORT
Short-term benefits
Post-
employment
benefits
Salary and
fees
Cash
bonus
Non-
monetary
benefit
Super-
annuation
Share-based
payment
Options and
Performance
Rights
$
$
$
$
$
Total
$
Performance
related
%
20,000
200,000
20,000
19,998
259,998
-
-
-
-
-
-
-
-
-
-
-
-
20,000
-
20,000
64,509
284,509
22.7%
-
-
-
-
20,000
19,998
-
-
20,000
64,509
344,507
Name
2022
Directors and
CEO
L Dudfield
J Wilson
L Carpene
A Ho
Totals
i) Service agreements
On appointment to the Board, all Directors enter into a service agreement with the Company in
the form of a letter of appointment. The letter summarises the Board policies and terms of
appointment, including remuneration relevant to the office of Director. Remuneration and other
terms of employment for other members of key management personnel are formalised in service
agreements as summarised below.
Mr J Wilson, Chief Executive Officer
Mr Wilson is remunerated pursuant his Executive Services Agreement (Original Agreement) and a
variation to the Original Agreement dated 14 November 2022 (together CEO Agreement). The key
terms of the CEO Agreement are:
a) Remuneration package of $260,000 per annum plus statutory superannuation (capped at
$27,500 per annum) on a full-time basis.
b) Either party may terminate the CEO Agreement by providing the other party with three months
written notice or payment in lieu of notice.
c) 7,000,000 unlisted sign-on options, issued with an exercise price that is 150% of the volume
weighted average price of the Company’s shares for the five trading days prior to the
commencement date with an expiry date of 31 December 2023 – exercise price is $0.0252. The
sign-on options will become exercisable (vest) twelve months after the commencement date
and will otherwise be issued on terms and conditions in accordance with the Incentive Plan
Rules (including that the sign-on options will lapse if the Executive ceases to be an ‘Eligible
Participant’ under the Incentive Plan Rules).
d)
10,000,000 unlisted Performance Rights, issued in three tranches (20%, 40%, 40%) with vesting
dependent upon the satisfaction of specific performance hurdles, including increasing the
Company’s share price and market capitalisation and outperforming peer companies, with a
three-year measurement period ending 31 December 2023. The Performance Rights will
ANNUAL REPORT 30 JUNE 2023
Page 35 of 75
DIRECTOR’S REPORT
otherwise be issued on terms and conditions in accordance with the Incentive Plan Rules
(including that the Performance Rights will lapse if the Executive ceases to be an ‘Eligible
Participant’ under the Incentive Plan Rules).
j) Details of share-based compensation and bonuses
Options
Options over ordinary shares in Alchemy Resources Limited are granted under the Employee
Securities Incentive Plan (“Plan”). Participation in the Plan and any vesting criteria are at the Board’s
discretion and no individual has a contractual right to participate in the Plan or to receive any
guaranteed benefits. Any options issued to Directors of the Company are subject to shareholder
approval.
The terms and conditions of each grant of options affecting remuneration in the current or future
reporting periods are set out below.
Grant date Vesting date Expiry date
Number of
options
29-Nov-22 29-Nov-23
29-Nov-22 29-Nov-23
29-Nov-22 29-Nov-23
23-Dec-25
23-Dec-25
23-Dec-25
2,000,000
2,000,000
2,000,000
Exercise
price
$0.04
$0.04
$0.04
Value per
option at
grant date
$0.02
$0.02
$0.02
Total
Value
$40,000
$40,000
$40,000
% Vested
0%
0%
0%
1 On 29 November 2022, 6,000,000 unlisted options exercisable at $0.0405 were granted to the
directors (2,000,000 each to L Dudfield, L Carpene and A Ho) as remuneration. The options become
exercisable and vest twelve months after the issue date, being 29 November 2023.
The fair value of options at grant date are determined using a Black-Scholes option pricing model
that takes into account the exercise price ($0.0405), the term of the option (3 years), the share price
at grant date ($0.027) and expected price volatility of the underlying share (121%), the expected
dividend yield (0%) and the risk-free interest rate (3.24%) for the term of the option.
Performance Rights
Performance rights in Alchemy Resources Limited are granted under the Plan. Participation in the
Plan and any vesting criteria are at the Board’s discretion and no individual has a contractual right
to participate in the Plan or to receive any guaranteed benefits. Any performance rights issued to
Directors of the Company are subject to shareholder approval.
The terms and conditions of each grant of performance rights affecting remuneration in the current
or future reporting periods are set out below.
On 1 January 2021, the Company granted 10,000,000 performance rights to Mr Wilson under the
Incentive Option Plan (“the Plan”). The performance rights have a nil exercise price and are subject
to the following vesting conditions:
- Tranche 1: Up to 4,000,000 of the performance rights may vest related to the Company’s Market
Capitalisation (“Capitalisation”) on 31 December 2023 (“Measurement Date”) as follows:
Where the Capitalisation is:
• greater than or equal to $50 million then 4,000,000 of the Tranche 1 Performance Rights
will vest on the Measurement Date; or
ANNUAL REPORT 30 JUNE 2023
Page 36 of 75
DIRECTOR’S REPORT
• greater than or equal to $25 million but less than $50 million then 2,000,000 of the Tranche
1 Performance Rights will vest on the Measurement Date; or
•
less than $25 million then no Tranche 1 Performance Rights will vest on the Measurement
Date.
- Tranche 2: Up to 4,000,000 of the performance rights may vest based on the relative
performance of the Company’s share price compared to that of the S&P/ASX Small Ordinaries
Resources Index (AXSRD) over the period 1 January 2021 to 31 December 2023 (“Measurement
Period”). The base measure for AXSRD and the Company’s share price being closing prices as at
31 December 2020 (being AXSRD 2,995.33 and ALY $0.018 respectively). Where the relative
performance of the Company’s share price to the AXSRD is:
• greater than or equal to 100% outperformance then 4,000,000 of the Tranche 2
Performance Rights will vest on the Measurement Date; or
• greater than or equal to 50% outperformance but less than 100% outperformance then
2,000,000 of the Tranche 2 Performance Rights will vest on the Measurement Date; or
•
less than 50% outperformance then no Tranche 2 Performance Rights will vest on the
Measurement Date.
- Tranche 3: Up to 2,000,000 of the performance rights will vest if the Company’s share price is
greater than or equal to $0.10 at the Measurement Date.
The above performance rights continue to be expensed over the vesting period.
Rights
series
Grant
date
Number of
rights
Measurement
Date for
Vesting
Expiry and
vesting
date
Exercise
price
Value per right
at grant date
Total
value
%
Vested
1
2
3
1 Jan 2021
1 Jan 2021
1 Jan 2021
4,000,000
4,000,000
2,000,000
31 Dec 2023 31 Dec 2023
31 Dec 2023 31 Dec 2023
31 Dec 2023 31 Dec 2023
Nil
Nil
Nil
$0.0089
$0.0161
$0.0066
$35,620
$64,509
$13,196
0%
0%
0%
The fair value of performance rights at grant date were independently determined using a Monte
Carlo stimulation pricing model that takes into account the vesting conditions, the term of the
performance rights, 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 performance
right.
k) Equity instruments held by key management personnel
The following tables detail the number of fully paid ordinary shares, options over ordinary shares
and performance rights in the Company that were held during the financial year by key
management personnel of the Group, including their close family members and entities related to
them.
ANNUAL REPORT 30 JUNE 2023
Page 37 of 75
DIRECTOR’S REPORT
Options
2023
Directors
L Dudfield
L Carpene
A Ho
CEO
J Wilson
Total
Opening
balance
(1 July)
Granted as
remuneration
Expired
Balance at 30
June
Vested but not
exercisable
Vested and
exercisable
Unvested
Max value
yet to vest
1,185,983
25,000
-
2,000,000
2,000,000
2,000,000
(1,185,983)
(25,000)
-
2,000,000
2,000,000
2,000,000
7,000,000
8,210,983
-
6,000,000
-
(1,210,983)
7,000,000
13,000,000
-
-
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
$40,000
$40,000
$40,000
7,000,000
7,000,000
-
6,000,000
-
$120,000
Performance Rights
2023
Directors
L Dudfield
L Carpene
A Ho
CEO
J Wilson
Total
Opening
balance
(1 July)
Granted as
remuneration
Performance
Rights/Option
s exercised
Net change
other
Balance at
30 June
Vested but
not
exercisable
Vested and
exercisable
Unvested
Max value
yet to vest
-
-
-
10,000,000
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 10,000,000
- 10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
$113,325
- 10,000,000
$113,325
Shareholdings
2023
Opening balance (1
July)
On
appointment
Participation in placement or
entitlement issue
On market acquisition
or disposal
On resignation
Balance at
30 June
Directors
L Dudfield
L Carpene
A Ho
CEO
J Wilson
Total
60,880,611
2,916,666
-
6,655,399
70,452,676
-
-
-
-
-
l) Loans to key management personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,880,611
2,916,666
-
6,655,399
70,452,676
There were no loans to individuals or members of key management personnel during the financial
year or the previous financial year.
m) Other transactions with key management personnel
There were no other transactions with key management personnel during the financial year or the
previous financial year.
END OF REMUNERATION REPORT (AUDITED)
ANNUAL REPORT 30 JUNE 2023
Page 38 of 75
DIRECTOR’S REPORT
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Date options granted
11 December 2019
1 January 2021
8 November 2021
8 November 2021
20 December 2021
20 June 2022
21 June 2022
17 October 2022
29 November 2022
Expiry date
31 December 2023
31 December 2023
8 November 2024
8 November 2024
22 November 2023
22 June 2025
22 June 2025
17 October 2025
23 December 2025
Exercise price
$0.025
$0.0252
$0.025
$0.035
$0.022
$0.034
$0.034
$0.05
$0.0405
Number under option
250,000
7,000,000
1,000,000
1,000,000
5,000,000
2,000,000
1,300,000
10,000,000
6,000,000
33,550,000
No option holder has any right under the options to participate in any other share issue of the Company
or any other entity.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
The following ordinary shares of the Company were issued during the year ended 30 June 2023 and up
to the date of this report on the exercise of options granted:
Date options granted
18 November 2021
12 November 2020
Exercise price
$0.02
$0.03
Number under option
5,000,000
2,199
5,002,199
CORPORATE GOVERNANCE STATEMENT
The Company’s 2023 Corporate Governance Statement has been released as a separate document and
is located on the Company’s website at http://alchemyresources.com.au/corporate-governance.
PROCEEDINGS ON BEHALF OF THE CONSOLIDATED ENTITY
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 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.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Company paid a premium to insure the Directors and Officers of the
consolidated entity against any liability incurred as a Director or Officer to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits the disclosure of the nature of the liabilities
covered or the amount of the premium paid.
The Group has not entered into any agreement with its current auditors indemnifying them against
claims by a third party arising from their position as auditor.
ANNUAL REPORT 30 JUNE 2023
Page 39 of 75
DIRECTOR’S REPORT
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Company and/or the Group are important.
Details of the amounts paid or payable to the auditor (BDO Audit (WA) Pty Ltd) for audit and non-audit
services provided during the year are set out in note 17. During the year ended 30 June 2023 no fees
were paid or were payable for non-audit services provided by the auditor of the consolidated entity
(2022: $Nil).
ROUNDING OF AMOUNTS
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been
rounded off in accordance with that Corporations Instrument to the nearest dollar.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on the following page.
Signed in accordance with a resolution of the Directors.
Lindsay Dudfield
Chair
Perth, 28 September 2023
ANNUAL REPORT 30 JUNE 2023
Page 40 of 75
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF ALCHEMY RESOURCES
LIMITED
As lead auditor of Alchemy Resources Limited for the year ended 30 June 2023, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Alchemy Resources Limited and the entities it controlled during the
period.
Neil Smith
Director
BDO Audit (WA) Pty Ltd
Perth
28 September 2023
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
1
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023
Notes
9
3
3
5
Continuing operations
Other income
Exploration expenditure written off
Employee expense
Corporate expense
Administration expense
Loss from continuing operations before income tax
Income tax benefit
Loss after income tax for the year attributable to the
owners of Alchemy Resources Limited
Other comprehensive income
Other comprehensive income for the year (net of tax)
Total comprehensive loss for the year attributable to the
owners of Alchemy Resources Limited
CONSOLIDATED
2023
$
2022
$
187,565
16,851
(305,660)
(270,538)
(227,880)
(96,056)
(249,238)
(238,705)
(238,669)
(96,356)
(712,569)
(806,117)
-
-
(712,569)
(806,117)
-
-
-
-
(712,569)
(806,117)
Cents
per share
Cents
per share
Loss per share attributable to the owners of Alchemy
Resources Limited
Basic loss per share
Diluted loss per share
16
16
0.06
N/A
0.09
N/A
This Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
ANNUAL REPORT 30 JUNE 2023
Page 42 of 75
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Exploration and evaluation
Property, plant and equipment
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Notes
CONSOLIDATED
2023
$
2022
$
6
7
8
9
11
12
13
14
15
5,005,228
2,008,082
79,540
43,026
46,431
41,800
5,127,794
2,096,313
9,845,999
1,432
8,095,770
-
9,847,431
8,095,770
14,975,225
10,192,083
267,078
86,236
353,314
206,836
40,453
247,289
353,314
247,289
14,621,911
9,944,794
43,417,654
500,904
38,375,003
193,539
(29,296,647)
(28,623,748)
14,621,911
9,944,794
This Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2023
Page 43 of 75
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
ATTRIBUTABLE TO EQUITY HOLDERS OF THE ENTITY
Contributed
Equity
Option
reserves
Accumulated
losses
$
$
$
Total
equity
$
35,394,645
76,835
(27,817,631)
7,653,849
-
-
-
3,081,117
21,875
(122,634)
-
-
-
-
-
-
-
-
78,929
37,775
(806,117)
(806,117)
-
-
(806,117)
(806,117)
-
-
-
-
-
3,081,117
21,875
(122,634)
78,929
37,775
38,375,003
193,539
(28,623,748)
9,944,794
38,375,003
193,539
(28,623,748)
9,944,794
-
-
-
5,500,000
100,066
(557,415)
-
-
-
-
-
-
-
-
-
(39,670)
309,259
37,776
(712,569)
(712,569)
-
-
(712,569)
(712,569)
-
-
-
39,670
-
-
5,500,000
100,066
(557,415)
-
309,259
37,776
At 1 July 2021
Loss for the year
Other comprehensive income
Total comprehensive loss for the year, net of
tax
Transactions with owners in their capacity as
owners
Issue of shares
Issue of broker options
Share issue costs
Performance rights expense
Expiry of options
At 30 June 2022
At 1 July 2022
Loss for the year
Other comprehensive income
Total comprehensive loss for the year, net of
tax
Transactions with owners in their capacity as
owners
Issue of shares
Issue of options
Share issue costs
Options exercised and expired
Options expense
Performance rights expense
At 30 June 2023
43,417,654
500,904
(29,296,647) 14,621,911
This Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2023
Page 44 of 75
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Notes
CONSOLIDATED
2023
$
(296,566)
83,671
2022
$
(461,541)
8,108
NET CASH FLOWS USED IN OPERATING ACTIVITIES
23
(212,895)
(453,433)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Payments for exploration assets
(1,885)
-
(2,010,725)
(1,443,219)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(2,012,610)
(1,443,219)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from exercise of options
Share issue costs
13
13
13
5,500,000
100,066
(377,415)
3,081,117
21,875
(122,634)
NET CASH FLOWS FROM FINANCING ACTIVITIES
5,222,651
2,980,358
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
2,997,146
2,008,082
1,083,706
924,376
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
6
5,005,228
2,008,082
This Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2023
Page 45 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1: CORPORATE INFORMATION
The consolidated financial report of Alchemy Resources Limited for the year ended 30 June 2023 was
authorised for issue in accordance with a resolution of the Directors on 28 September 2023.
Alchemy Resources Limited is a for-profit company incorporated in Australia and limited by shares
which are publicly quoted on the Australian Securities Exchange. The nature of the operation and
principal activities of the consolidated entity are described in the attached Directors’ Report.
The principal accounting policies adopted in the preparation of these consolidated financial
statements are set out below and have been applied consistently to all periods presented in the
consolidated financial statements and by all entities in the consolidated entity.
NOTE 2: STATEMENT OF COMPLIANCE
These general-purpose financial statements have been prepared in accordance with Australian
Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards
Board, Urgent Issues Group Interpretations and the Corporations Act 2001.
Compliance with IFRS
The consolidated financial statements of Alchemy Resources Limited also comply with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”).
New and amended accounting standards and interpretations adopted by the Group
The accounting standards and interpretations relevant to the operations of the Group are consistent
with those of the previous financial year. There are some amendments and interpretations effective
for the first time from 1 July 2022, though they did not have any impact on the current period or any
prior period and are not likely to affect future periods.
A number of new standards, amendments to standards and interpretations issued by the AASB which
are not yet mandatorily applicable to the Group have not been applied in preparing these
consolidated financial statements and none are expected to be relevant to the Group. The Group does
not plan to adopt these standards early.
a) Basis of measurement
Historical Cost Convention
These consolidated financial statements have been prepared under the historical cost convention,
except where stated.
Critical Accounting Estimates
The preparation of consolidated financial statements requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the
Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or
ANNUAL REPORT 30 JUNE 2023
Page 46 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
areas where assumptions and estimates are significant to the consolidated financial statements,
are disclosed where appropriate.
b) Going Concern
The financial statements for the year ended 30 June 2023 have been prepared on the basis that
the group is a going concern and therefore, contemplates the continuity of normal business
activity, realisation of assets and settlement of liabilities in the normal course of business.
The Group has considered its ability to continue as a going concern for at least the next 12 months
from the approval of these financial statements, taking into consideration an estimation of the
expected cash flows based on the needs of the business. This assessment assumes the Group will
be able to realise assets and discharge liabilities in the ordinary course of business beyond this
period.
c) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
the Company as at 30 June 2023 and the results of all subsidiaries for the year then ended. The
Company and its subsidiaries together are referred to in this financial report as the Group or the
consolidated entity.
Subsidiaries are all entities (including structured 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
investment with the entity and has the ability to affect those returns through its power to direct
the activities of the entity.
The acquisition method of accounting is used to account for business combinations by the Group.
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 Group
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of profit or loss and other comprehensive income, consolidated
statement of financial position and the consolidated statement of changes in equity respectively.
d) Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgments, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.
ANNUAL REPORT 30 JUNE 2023
Page 47 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are
recognised in the period in which the estimate is revised if it affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
e) Functional and presentation currency
The consolidated financial statements are presented in Australian dollars, which is the Group’s
functional and presentation currency.
f) Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to
the Group as lessee are classified as operating leases. Payments made under operating leases
(net of any incentives received from the lessor) are charged to profit or loss as incurred over the
period of the lease.
Leases in which a significant portion of the risks and rewards of ownership are transferred to the
Group as lessee are classified as finance leases. At the commencement date of a lease, the Group
recognises a liability to make lease payments (i.e. the lease liability) and an asset representing the
right to use the underlying asset during the lease term (i.e. the right-of-use asset). The Group
separately recognises the interest expense on the lease liability and the depreciation expense on
the right-of-use asset.
g) Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have
been rounded off in accordance with that Corporations Instrument to the nearest dollar.
h) Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property,
plant and equipment (excluding land) over their expected useful lives as follows:
Plant and equipment
3 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no
future economic benefit to the Group. Gains and losses between the carrying amount and the
disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item
disposed of is transferred directly to retained profits.
ANNUAL REPORT 30 JUNE 2023
Page 48 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3: REVENUE AND EXPENSES
Expenses
Employee expense
Employee benefit and director compensation expense
Expense of share-based payments (note 22)
Other employee expenses
Total employee expense
Administration expense
Depreciation
Occupancy and occupancy outgoings
Insurance
Other administration expenses
Total administration expense
CONSOLIDATED
2023
$
2022
$
89,708
167,035
13,795
270,538
453
40,066
31,451
25,704
97,674
110,707
116,704
11,294
238,705
-
41,237
25,908
29,211
96,356
Revenue is recognised at an amount that reflects the consideration to which the Group expects to be
entitled to in exchange for transferring services to a customer. Revenue and expenses are recognised
on an accrual basis.
Interest income is recognised on a time proportion basis using the effective interest method.
NOTE 4: SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board of
Directors of Alchemy Resources Limited.
The Group operates in one geographical segment, being Australia and in one operating category,
being mineral exploration. Therefore, information reported to the chief operating decision maker (the
Board of Alchemy Resources Limited) for the purposes of resource allocation and performance
assessment is focused on mineral exploration within Australia.
NOTE 5: INCOME TAX
Major components of income tax expense are as follows:
A reconciliation of income tax expense/(benefit) applicable to accounting profit/(loss) before income
tax at the statutory income tax rate to income tax expense/(benefit) at the Company’s effective income
tax is as follows:
ANNUAL REPORT 30 JUNE 2023
Page 49 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting loss from continuing operations before income tax
At the statutory income tax rate of 25% (2022: 30%)
Add:
- Non-assessable income
- Non-deductible expenses
- Capital raising costs
- Other deductible expenses
- Share-based payment
- Tax loss not brought to account as a deferred tax asset
CONSOLIDATED
2023
$
2022
$
(712,569)
(178,142)
-
466
(9,970)
(5,584)
41,759
151,471
(806,117)
(241,835)
30
579
(11,964)
(6,758)
35,011
224,937
Income tax expense/(benefit) reported in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income
-
-
The income tax expense or benefit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate, adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulations are subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
ANNUAL REPORT 30 JUNE 2023
Page 50 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred income tax
Recognised on the Consolidated Statement of Financial Position
Deferred income tax at the end of the reporting period relates to the
following:
Deferred income tax liabilities
- Capitalised expenditure deductible for tax purposes
- Prepayments
- Property, plant and equipment
- Trade and other receivables
Deferred income tax assets
- Trade and other payables
- Employee benefits
- Capitalised expenditure non-deductible for tax purposes
- Tax losses available to offset DTL
Net deferred tax asset/(liability)
Tax consolidation
CONSOLIDATED
2023
$
2022
$
2,384,812
10,756
358
2,342
2,336,705
12,540
-
-
2,398,268
2,349,245
(5,825)
(21,559)
(27,845)
(2,343,039)
(12,299)
(12,136)
(47,623)
(2,277,187)
-
-
The Company and its 100% owned controlled entities have formed a tax consolidated group. The head
entity of the tax consolidated group is Alchemy Resources Limited.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
At 30 June 2023, Alchemy Resources Limited had $37,775,946 (2022: $35,415,054) of tax losses that
are available indefinitely for offset against future taxable profits subject to satisfaction of the loss tests.
No deferred tax asset has been recognised in the Consolidated Statement of Financial Position in
respect of the amount of either these losses or other deferred tax expenses. Should the Company not
satisfy the Continuity of Ownership Test, the Company will be able to utilise the losses to the extent
that it satisfies the Same Business Test.
ANNUAL REPORT 30 JUNE 2023
Page 51 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Deposits at call
CONSOLIDATED
2023
$
2022
$
238,728
4,766,500
5,005,228
1,991,582
16,500
2,008,082
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of six months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
The weighted average interest rate for the year was 2.21% (2022: 0.86%).
The Group’s exposure to interest rate risk is set out in note 21. The maximum exposure to credit risk
at the end of the reporting period is the carrying amount of each class of cash and cash equivalents
mentioned above.
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other
CONSOLIDATED
2023
$
65,542
13,998
79,540
2022
$
45,705
726
46,431
Trade receivables are normally due for settlement within 30 days. They are presented as current assets
unless collection is not expected for more than 12 months after the reporting date.
Trade and other receivables are recognised at amortised cost using the effective interest rate method,
less any allowance for expected credit losses.
The Group assesses at each balance date whether there is objective evidence that a financial asset or
group of financial assets is impaired. For trade and other receivables, the Group applies the simplified
approach permitted by AASB 9 to determine any allowances for expected credit losses, which requires
expected lifetime losses to be recognised from initial recognition of the receivables. The expected
credit losses on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience. The amounts held in trade and other receivables do not contain
impaired assets and are not past due. Based on the credit history of these trade and other receivables,
it is expected that the amounts will be received when due.
The Group’s financial risk management objectives and policies are set out in note 21.
Due to the short-term nature of these receivables their carrying value is assumed to approximate their
fair value.
ANNUAL REPORT 30 JUNE 2023
Page 52 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: OTHER CURRENT ASSETS
Prepayments
NOTE 9: EXPLORATION AND EVALUATION
Opening balance
Exploration expenditure incurred during the year
Exploration expenditure written off
Closing balance
CONSOLIDATED
2023
$
43,026
43,026
2022
$
41,800
41,800
CONSOLIDATED
2023
$
2022
$
8,095,770
2,055,889
(305,660)
9,845,999
6,822,841
1,522,168
(249,239)
8,095,770
Exploration and evaluation expenditure, including the costs of acquiring licences and permits, are
capitalised as exploration and evaluation assets on an area of interest basis. Costs incurred before the
Group has obtained the legal rights to explore an area are recognised in the Consolidated Statement
of Profit or Loss and Other Comprehensive Income.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current
and either:
i) the expenditures are expected to be recouped through successful development and exploitation
or from sale of the area of interest; or
ii) activities in the area of interest have not at the reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine
technical feasibility and commercial viability, and facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which the exploration activity relates. The
cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of minerals in an area of
interest are demonstrable, exploration and evaluation assets attributable to that area of interest are
first tested for impairment and then reclassified to mineral property and development assets within
property, plant and equipment.
When an area of interest is abandoned or the directors decide that it is not commercial, any
accumulated costs in respect of that area are written off in the financial period the decision is made.
ANNUAL REPORT 30 JUNE 2023
Page 53 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Significant estimate and judgement
There is some subjectivity involved in the carry forward of capitalised exploration and evaluation
expenditure or, where appropriate, the write off to the Consolidated Statement of Profit or Loss and
Other Comprehensive Income, however management give due consideration to areas of interest on
a regular basis and are confident that decisions to either write off or carry forward such expenditure
fairly reflect the prevailing situation.
NOTE 10: SUBSIDIARIES
Details of the Company’s subsidiaries are as follows:
Subsidiary
Principal
activity
Country of
incorporation
Alchemy Resources (Murchison) Pty Ltd
Alchemy Resources (Three Rivers) Pty Ltd
Goldtribe Corporation Pty Ltd
Alchemy Resources (NSW) Pty Ltd
Exploration
Exploration
Exploration
Exploration
Australia
Australia
Australia
Australia
Proportion of ownership
2023
100%
100%
100%
100%
2022
100%
100%
100%
100%
NOTE 11: TRADE AND OTHER PAYABLES
Trade creditors
Other creditors and accruals
NOTE 12: PROVISIONS
Current
Employee benefits
Short–term obligations
CONSOLIDATED
2023
$
214,306
52,772
267,078
2022
$
152,804
54,032
206,836
CONSOLIDATED
2023
$
2022
$
86,236
40,453
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be
settled within 12 months, are recognised in respect of employees’ services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
The liability for annual leave is recognised in the provision for employee benefits. All other short-term
employee benefit obligations are presented as payables.
The obligations are presented as current liabilities in the Consolidated Statement of Financial Position
of the Group.
ANNUAL REPORT 30 JUNE 2023
Page 54 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13: CONTRIBUTED EQUITY
a) Share capital
Ordinary shares fully paid
b) Movements in ordinary shares on issue
Balance at 1 July 2021
Placement (1)
Non-renounceable issue to shareholders (2)
Exercise of options (3)
Share issue costs
Balance at 30 June 2022
Placement (4)
Non-renounceable issue to shareholders
Exercise of options (5)
Share issue costs
Balance at 30 June 2023
CONSOLIDATED
2023
$
2022
$
43,417,654
38,375,003
CONSOLIDATED
Number
$
672,243,453
35,394,645
168,060,862
112,040,575
729,167
-
1,848,669
1,232,448
21,875
(122,634)
953,074,057
38,375,003
220,000,000
5,500,000
5,002,199
-
100,066
(557,415)
1,178,076,256
43,417,654
(1) In October 2021 the Company completed a Placement via the issue of 168,060,862 new Shares at an
issue price of $0.011 per share.
(2) In November 2021 the Company completed the issue of 112,040,575 new Shares pursuant to a pro-rata
non-renounceable entitlement and shortfall offer of 1 new Share for every 6 existing Shares held at an
issue price of $0.011 per share.
(3) In May 2022 the Company issued 729,167 shares as a result of the exercise of unquoted options at $0.03
per option.
(4) In October 2022 the Company completed a Placement via the issue of 220,000,000 new Shares at an
issue price of $0.025 per share.
(5) The Company issued a total of 5,002,199 shares during the financial year due to the exercise of unquoted
options. Out of the 5,002,199 options exercised during the period, 2,199 options were exercised at $0.03
per option, and the remaining 5,000,000 options were exercised at $0.02 per option.
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. Ordinary
shares have the right to receive dividends as declared, and in the event of winding up the
Company, to participate in the proceeds from the sale of all surplus assets in proportion to the
number of and amounts paid upon on shares held. Ordinary shares entitle their holder to one
vote, either in person or by proxy, at a meeting of the Company.
ANNUAL REPORT 30 JUNE 2023
Page 55 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
c) Movements in options on issue
Balance at beginning of the financial year
Options issued (1)
Options granted
Options expired or exercised (2)
Balance at end of the financial year
CONSOLIDATED
2023
Number
2022
Number
55,250,609
16,000,000
-
(37,700,609)
33,550,000
40,679,776
10,000,000
5,300,000
(729,167)
55,250,609
(1) On 29 November 2022, the shareholders approved the issue of a total of 6,000,000 unlisted
options to the directors of Alchemy exercisable at $0.0405 and expiring 3 years from the date
of issue, 23 December 2025. On 17 October 2022 the Company issued 10,000,000 unlisted
options exercisable at $0.05 and expiring 17 October 2025 to the joint lead managers of the
Company’s placement.
(2) During the financial year, the Company issued 5,002,199 shares as a result of the exercise of
unquoted options. 5,000,000 unquoted options were exercised at $0.02 and 2,199 unquoted
options were exercised at $0.03. 32,698,410 unquoted options expired on 30 September 2022.
d) Movements in performance rights on issue
Balance at beginning of the financial year
Performance rights granted
Balance at end of the financial year
NOTE 14: RESERVES
Opening balance
Option expense
Performance rights expense
Options exercised
Expiry of options
Balance at the end of the financial year
CONSOLIDATED
2023
Number
2022
Number
10,000,000
-
10,000,000
10,000,000
-
10,000,000
CONSOLIDATED
2023
$
193,539
309,259
37,776
(15,070)
(24,600)
500,904
2022
$
76,835
66,116
50,588
-
-
193,539
The options reserve is used to recognise the fair value of options and performance rights issued to
directors, employees and contractors.
ANNUAL REPORT 30 JUNE 2023
Page 56 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15: ACCUMULATED LOSSES
Balance at the beginning of the financial year
Net loss attributable to members
Lapsed and exercised options transferred from option reserve (note 14)
Balance at the end of the financial year
NOTE 16: LOSS PER SHARE
Basic loss per share
Diluted loss per share
CONSOLIDATED
2023
$
2022
$
(28,623,748)
(712,569)
39,670
(29,296,647)
(27,817,631)
(806,117)
-
(28,623,748)
CONSOLIDATED
2023
Cents
0.06
N/A
2022
Cents
0.09
N/A
The following reflects the income and share data used in the calculations of basic and diluted loss per
share:
CONSOLIDATED
2023
$
2022
$
Losses used in calculating basic and diluted loss per share
(712,569)
(806,117)
Weighted average number of ordinary shares used in
calculating basic and diluted loss per share
Basic loss per share
CONSOLIDATED
2023
Number
2022
Number
1,110,445,681
870,041,869
Basic loss per share is calculated by dividing the loss attributable to owners of the Group, excluding
any costs of servicing equity other than ordinary shares by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
Diluted loss per share
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares, and the weighted average number of additional ordinary shares that would
have been outstanding assuming the conversion of all dilutive potential ordinary shares.
ANNUAL REPORT 30 JUNE 2023
Page 57 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17: AUDITOR’S REMUNERATION
Audit services
BDO Audit (WA) Pty Ltd
- Audit and review of the financial reports
Total remuneration
NOTE 18: CONTINGENT ASSETS AND LIABILITIES
The Group had contingent assets at 30 June 2023 in respect of:
Future royalty payments
CONSOLIDATED
2023
$
2022
$
59,112
59,112
50,665
50,665
In March 2015, Alchemy completed a Sale and Purchase Agreement with Northern Star Resources
Limited (“Northern Star”) whereby the tenement containing the Hermes gold resource and adjacent
tenements were acquired by Northern Star (“Hermes Tenements”).
In October 2016, Northern Star completed the sale of its Plutonic gold operations, which included the
Hermes Tenements to Billabong Gold Pty Ltd.
Alchemy retains a 1% of Net Smelter Return Royalty payable on refined gold recovered from the
Hermes Tenements in excess of 70,000oz and up to 90,000oz.
There are no other material contingent assets or liabilities as at 30 June 2023.
NOTE 19: EVENTS OCCURRING AFTER THE REPORTING PERIOD
There have been no events subsequent to reporting date which are sufficiently material to warrant
disclosure.
NOTE 20: COMMITMENTS
In order to maintain an interest in the exploration tenements in which the Group is involved, the Group
is committed to meet the conditions under which the tenements were granted. The timing and amount
of exploration expenditure commitments and obligations of the Group are subject to the minimum
expenditure commitments required as per the Mining Act 1978, as amended, and may vary
significantly from the forecast based upon the results of the work performed which will determine the
prospectively of the relevant area of interest. Currently, the minimum expenditure commitments for
the granted tenements are $2,703,520 (2022: $2,542,742) per annum.
NOTE 21: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial Risk Management
Overview
The Group has exposure to the following risks from their use of financial instruments:
ANNUAL REPORT 30 JUNE 2023
Page 58 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interest rate risk
Credit risk
Liquidity risk
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.
Risk management policies are established to identify and analyse the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities.
The Audit Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group. The Group’s principal financial instruments are tabled below.
Financial assets
Current
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Current
Trade and other payables
Interest rate risk
CONSOLIDATED
2023
$
2022
$
5,005,228
79,540
5,084,768
2,008,082
46,431
2,054,513
267,078
267,078
206,836
206,836
Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the
instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from
fluctuations in interest bearing financial assets and liabilities that the Group uses.
Interest bearing assets comprise cash and cash equivalents which are considered to be short-term
liquid assets. It is the Group’s policy to settle trade payables within the credit terms allowed and
therefore not incur interest on overdue balances.
The following tables set out the carrying amount, by maturity, of the financial instruments that are
exposed to interest rate risk:
ANNUAL REPORT 30 JUNE 2023
Page 59 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Floating interest
rate
$
Fixed interest rate maturing in
Over 1 to 5
years
$
More than
5 years
$
1 year or
less
$
Consolidated 2023
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Weighted average
interest rate
Financial liabilities
Trade and other
payables
Weighted average
interest rate
Consolidated 2022
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Weighted average
interest rate
Financial liabilities
Trade and other
payables
Weighted average
interest rate
237,226
4,766,500
-
-
237,226
2.21%
4,766,500
3.42%
-
-
-
-
-
-
1,990,289
16,500
-
-
1,990,289
0.87%
16,500
0.4%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Non-interest
bearing
$
Total
$
1,502
5,005,228
79,540
79,540
81,042
5,084,768
-
-
267,078
267,078
267,078
206,836
-
-
1,293
2,008,082
46,431
46,431
47,724
2,054,513
-
-
206,836
206,836
206,836
206,836
-
-
Sensitivity analysis for interest rate exposure
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased)
equity and profit or loss by the amounts shown below:
Impact on profit/(loss) and equity
Increase of 100 basis points
Decrease of 100 basis points
2023
$
119,164
(119,164)
2022
$
6,522
(6,522)
ANNUAL REPORT 30 JUNE 2023
Page 60 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables
from customers and investment securities. The Group trades only with recognised, creditworthy third
parties. It is the Group policy that all customers who wish to trade on credit terms are subject to credit
verification procedures. In addition, receivable balances are monitored on an ongoing basis with the
result that the Group’s exposure to bad debts is not significant. The maximum exposure to credit risk
is the carrying value of the receivable, net of any expected credit losses.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash
and cash equivalents, the Group’s exposure to credit risk arises from default of the counter party, with
a maximum exposure equal to the carrying amount of these instruments. This risk is minimised by
reviewing term deposit accounts from time to time with approved banks of a sufficient credit rating
which is -AA and above.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The
Group’s maximum exposure to credit risk is tabled below:
Cash and cash equivalents
Liquidity risk
CONSOLIDATED
2023
$
2022
$
5,005,228
5,005,228
2,008,082
2,008,082
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group’s objective is to maintain a balance between continuity of funding and flexibility. The
following are the contractual maturities of financial liabilities:
ANNUAL REPORT 30 JUNE 2023
Page 61 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Consolidated - 2023
Trade and other payables
Consolidated – 2022
Trade and other payables
Capital risk management
Less than 6
months
$
Contractual
cash flows
$
Carrying amount
$
267,077
267,077
206,836
206,836
267,077
267,077
206,836
206,836
267,077
267,077
206,836
206,836
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital. The management of the Group’s
capital is performed by the Board.
The capital structure of the Group consists of net debt (trade and other payables and provisions
detailed in notes 11 and 12 offset by cash and bank balances) and equity of the Group (comprising
issued capital, reserves, offset by accumulated losses detailed in notes 13, 14 and 15).
The Group is not subject to any externally imposed capital requirements. None of the Group’s entities
are subject to externally imposed capital requirements.
NOTE 22: SHARE-BASED PAYMENTS
a) Share option and performance right plan
The Group has an Employee Securities Incentive Plan (“Plan”) for executives and employees of the
Group. In accordance with the provisions of the Plan, as approved by shareholders at a previous
annual general meeting, executives and employees may be granted options and performance
rights at the discretion of the Directors.
Each share option and performance right converts into one ordinary share of Alchemy Resources
Limited on exercise. No amounts are paid or are payable by the recipient on receipt of the option.
The options carry neither rights of dividends nor voting rights. Options may be exercised at any
time from the date of vesting to the date of their expiry.
Options and performance rights issued to Directors are subject to approval by shareholders.
The share-based payments expense for the period was $167,035. The following share-based
payment arrangements under incentive plans were in existence during the reporting period:
ANNUAL REPORT 30 JUNE 2023
Page 62 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Number of
Options
250,0001
7,000,0002
1,000,0001
1,000,0001
5,000,0001
5,000,0001
2,000,0001
1,300,0001
10,000,0001
6,000,0003
Grant date
Expiry date
Vesting date
Exercise price
11 Dec 2019
1 Jan 2021
8 Nov 2021
8 Nov 2021
18 Nov 2021
18 Nov 2021
20 Jun 2022
21 Jun 2022
17 Oct 2022
29 Nov 2022
31 Dec 2023
31 Dec 2023
8 Nov 2024
8 Nov 2024
22 Nov 2022
22 Nov 2023
22 Jun 2025
22 Jun 2025
17 Oct 2025
23 Dec 2025
11 Dec 2019
31 Dec 2021
14 Sep 2022
14 Sep 2023
18 Nov 2021
18 Nov 2021
22 Jun 2023
22 Jun 2023
17 Oct 2022
23 Dec 2023
$0.025
$0.0252
$0.025
$0.035
$0.02
$0.022
$0.034
$0.034
$0.05
$0.0405
Fair value at
grant date
$0.0070
$0.0090
$0.0066
$0.0057
$0.003
$0.0047
$0.0150
$0.0200
$0.018
$0.02
1The Company notes that the options were issued to employees and consultants under the
previous incentive plan or agreements between the Company and placement lead managers.
2On 1 January 2021, 7,000,000 unlisted options were granted to CEO, James Wilson as a sign-on
bonus. The sign-on options vested on 31 December 2021.
3On 23 December 2022, after the receipt of shareholder approval, 2,000,000 unlisted options
exercisable at $0.0405 per option expiring three years from issue, were issued to each of the non-
executive directors, Lindsay Dudfield, Liza Carpene and Anthony Ho.
Number of
Rights4
4,000,000
4,000,000
2,000,000
Grant date
1 Jan 2021
1 Jan 2021
1 Jan 2021
Vesting date
and
conditions
Various
Various
Various
Expiry date
Exercise price
31 Dec 2023
31 Dec 2023
31 Dec 2023
Nil
Nil
Nil
Value per
right at grant
date
$0.0089
$0.0161
$0.0066
% Vested
0%
0%
0%
4 10,000,000 performance rights were granted to CEO, James Wilson as a long-term incentive.
b) Movements in options and performance rights during the year
Movement in the number of options and performance rights held by directors, employees and
advisors:
2023
2022
No. of
options and
performance
rights
35,550,000
16,000,000
(8,000,000)
43,550,000
26,550,000
Weighted
average exercise
price ($)
0.018
0.026
0.0231
0.020
0.023
No. of
options and
performance
rights
20,250,000
15,300,000
-
35,550,000
17,250,000
Weighted
average exercise
price ($)
0.013
0.025
-
0.18
0.023
Outstanding at the beginning of the year
Granted during the year
Expired/exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
The weighted average remaining contractual life of share options outstanding at the end of the
year was 1.21 years (2022: 1.54 years).
ANNUAL REPORT 30 JUNE 2023
Page 63 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The weighted average remaining contractual life of performance rights outstanding at the end of
the year was 0.5 years (2022: 1.54 years).
c) Options outstanding at the end of the year
Set out below are the options exercisable at the end of the financial year:
Expiry date
30 September 2022
31 December 2023
31 December 2023
8 November 2024
8 November 2024
22 November 2022
22 November 2023
22 June 2025
17 October 2025
23 December 2025
Exercise price ($)
0.03
0.025
0.0252
0.025
0.035
0.02
0.022
0.034
0.05
0.0405
2023 (number)
0
250,000
7,000,000
1,000,000
1,000,000
0
5,000,000
3,300,000
10,000,000
6,000,000
2022 (number)
32,700,609
250,000
7,000,000
1,000,000
1,000,000
5,000,000
5,000,000
3,300,000
0
0
38,550,000
55,250,609
NOTE 23: RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the period
Non-cash flows in profit/(loss):
- Depreciation
- Share-based remuneration
- Exploration expenditure write-off
-Other non-cash flows
Change in assets and liabilities:
- Decrease/(increase) in trade receivables
- Decrease/(increase) in prepayments
- Increase/(decrease) in trade creditors and accruals
- Increase/(decrease) in provisions
Net cash used in operating activities
Non-cash investing and financing activities
There were no non-cash investing activities during the year.
CONSOLIDATED
2023
$
2022
$
(712,569)
(806,117)
453
167,035
305,660
1,763
(17,881)
(1,226)
(1,913)
45,783
(212,895)
-
116,704
249,239
-
(1,930)
(26,939)
705
14,905
(453,433)
ANNUAL REPORT 30 JUNE 2023
Page 64 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 24: RELATED PARTY DISCLOSURE
a) Parent entity
Alchemy Resources Limited
Ordinary
Australia
-
-
Class
Country of
incorporation
Investment at cost
2023 ($)
2022 ($)
b) Subsidiaries
Alchemy Resources (Murchison) Pty Ltd
Alchemy Resources (Three Rivers) Pty Ltd
Goldtribe Corporation Pty Ltd
Alchemy Resources (NSW) Pty Ltd
Class
Ordinary
Ordinary
Ordinary
Ordinary
Country of
incorporation
Investment at cost
2023 ($)
2022 ($)
Australia
Australia
Australia
Australia
100
100
1
1
100
100
1
1
c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
CONSOLIDATED
2023
$
329,019
25,200
107,802
462,021
2022
$
259,998
20,000
69,631
349,629
There were no new related party transactions during the year ended 30 June 2023 and 30 June
2022.
Detailed remuneration disclosures are provided in the remuneration report on pages 32 to 38.
ANNUAL REPORT 30 JUNE 2023
Page 65 of 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 25: PARENT ENTITY DISCLOSURE
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
Financial Position
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued equity
Reserves
Accumulated losses
TOTAL EQUITY
CONSOLIDATED
2023
$
2,416,482
-
2,416,482
2022
$
1,998,424
-
1,998,424
5,075,128
3,720
2,058,745
2,288
5,078,848
2,061,033
162,039
162,039
117,429
117,429
4,916,809
1,943,604
43,417,654
500,904
(39,001,748)
38,375,002
193,539
(36,624,937)
4,916,809
1,943,604
No guarantees have been entered into by Alchemy Resources Limited in relation to the debts of its
subsidiaries. Alchemy Resources Limited had no expenditure commitments as at 30 June 2023.
ANNUAL REPORT 30 JUNE 2023
Page 66 of 75
DIRECTORS’ DECLARATION
The Directors of Alchemy Resources Limited declare that:
a)
in the Directors’ opinion, the financial statements and notes set out on pages 42 to 66 and the
Remuneration Report in the Directors’ Report are in accordance with the Corporations Act 2001,
including:
i)
ii)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and
its performance, for the financial year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), Corporations Regulations 2001 and mandatory professional reporting
requirements.
b)
c)
the financial statements also comply with International Financial Reporting Standards as disclosed
in note 2; and
there are reasonable grounds to believe that the consolidated entity will be able to pay its debts
as and when they become due and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001
by the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2023.
Signed in accordance with a resolution of the Directors.
Lindsay Dudfield
Chair
Perth, Western Australia
28 September 2023
ANNUAL REPORT 30 JUNE 2023
Page 67 of 75
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Alchemy Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Alchemy Resources Limited (the Company) and its subsidiaries
(the Group), 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 report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
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 Group in accordance with 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 (including Independence Standards) (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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
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.
Recoverability of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 9 to the Financial Report, the
Our procedures included, but were not limited to:
carrying value of capitalised exploration and
evaluation expenditure represents a significant asset
of the Group.
•
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
Refer to Note 9 of the Financial Report for a
remained current at balance date;
description of the accounting policy and significant
judgements applied to capitalised exploration and
evaluation expenditure.
•
Considering the status of the ongoing
exploration programmes in the respective areas
of interest by holding discussions with
In accordance with AASB 6 Exploration for and
management, and reviewing the Group’s
Evaluation of Mineral Resources (AASB 6), the
exploration budgets, ASX announcements and
recoverability of exploration and evaluation
directors’ minutes;
expenditure requires significant judgment by
management in determining whether there are any
facts or circumstances that exist to suggest that the
carrying amount of this asset may exceed its
recoverable amount. As a result, this is considered a
key audit matter.
•
Considering whether any such areas of interest
had reached a stage where a reasonable
assessment of economically recoverable
reserves existed;
•
Considering whether any facts or circumstances
existed to suggest impairment testing was
required; and
•
Assessing the adequacy of the related
disclosures in Note 9 to the Financial Report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 preparing the financial report, the directors are responsible for assessing the ability of the group 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 Group 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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 32 to 38 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Alchemy Resources Limited, for the year ended 30 June
2023, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 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.
BDO Audit (WA) Pty Ltd
Neil Smith
Director
Perth
28 September 2023
ADDITIONAL SHAREHOLDER INFORMATION AS AT 22 SEPTEMBER 2023
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere
in this report is as follows.
Distribution of Holders of Equity Securities
Shares held
Shareholders
Percentage of issued capital (%)
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
170
150
120
1,160
975
2,575
0.00
0.04
0.08
4.69
95.19
100.00
The number of holders of less than a marketable parcel of ordinary fully paid shares is 986 (1.24% of
issued capital).
Substantial Shareholders
Substantial shareholders (i.e. shareholders who hold 5% or more of the issued capital as disclosed in
the most recent substantial shareholder notices given to the Company):
Holder / Group name
Northern Star Resources Limited
Mr Neil Kenneth Watson
Mr Lindsay George Dudfield
Voting Rights
a) Ordinary shares
Shares held
Percentage of issued capital (%)
78,125,000
79,345,819
60,880,611
6.63%
6.76%
5.17%
Each shareholder is entitled to receive notice of and attend and vote at general meetings of the
Company. At a general meeting, every shareholder present in person or by proxy, representative
of attorney will have one vote on a show of hands and on a poll, one vote for each share held.
b) Options
No voting rights.
Quoted Securities on Issue
The Company has 1,178,076,256 quoted shares on issue. No options on issue by the Company are
quoted.
On-Market Buy Back
There is no current on-market buy back.
ANNUAL REPORT 30 JUNE 2023
Page 72 of 75
ADDITIONAL SHAREHOLDERS INFORMATION
Unquoted Equity Securities
Options exercisable at $0.025 on or before 31 December 2023
Options exercisable at $0.0252 on or before 31 December 2023
Options exercisable at $0.025 on or before 8 November 2024
Options exercisable at $0.035 on or before 8 November 2024
Options exercisable at $0.022 on or before 22 November 2023
Options exercisable at $0.034 on or before 22 June 2025
Options exercisable at $0.050 on or before 17 October 2025
Options exercisable at $0.0405 on or before 23 December 2025
Twenty Largest Holders of Quoted Ordinary Shares
Shareholder / Group name
Northern Star Resources Limited
Mr Lindsay George Dudfield and associated entities
Mr Neil Kenneth Watson and associated entities
Moryton Pty Ltd
Equity Trustees Limited
Netwealth Investments Limited
JP Morgan Nominees Australia Pty Limited
Alexander Angelopoulos and associated entities
Troca Enterprises Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
Mr Christopher Paul Lewis
Heron Resources Limited
Citicorp Nominees Pty Limited
Kingarth Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Lee Lindsay Burkett
Ms Zhen Chen
Mr Eric Anthony Frederick Bennik
Bluestar Management Pty Ltd
Mr James Michael Wilson
Potski Pty Ltd
Number on
issue
250,000
7,000,000
1,000,000
1,000,000
5,000,000
3,300,000
10,000,000
6,000,000
Number of
shares
78,125,000
60,880,611
59,345,819
50,000,000
45,818,182
28,564,407
40,000,002
17,802,159
16,950,000
12,686,519
12,314,506
12,000,000
10,944,947
10,000,000
9,958,700
8,700,000
7,451,110
7,445,092
7,000,000
6,655,399
6,222,220
468,864,671
Number of
holders
1
1
1
1
1
6
2
3
Percentage
held (%)
6.63%
5.17%
5.04%
4.24%
3.89%
2.42%
3.40%
1.51%
1.44%
1.08%
1.05%
1.02%
0.93%
0.85%
0.85%
0.74%
0.63%
0.63%
0.59%
0.56%
0.53%
39.80%
ANNUAL REPORT 30 JUNE 2023
Page 73 of 75
TENEMENT SCHEDULE
Project/Tenement
Bryah Basin Project
State
Western Australia
Status
Interest
Co-holder
Notes
E52/1668
E52/1678
E52/1722
E52/1723-I
E52/1730
E52/1731
E52/1810
E52/1852
E52/2362
E52/3292-I
E52/3358
E52/3359
E52/3405
E52/3406
E52/3408
E52/4086
E52/4087
E52/4088
E52/4089
E52/4090
E52/3472
E52/3475
M52/722
M52/723
M52/737
M52/795
M52/844-I
M52/1049
P52/1617
P52/1618
P52/1619
P52/1644
P52/1645
P52/1646
P52/1647
P52/1531
P52/1532
P52/1533
P52/1534
P52/1535
P52/1538
P52/1539
P52/1540
P52/1541
P52/1565
P52/1566
P52/1567
P52/1568
P52/1572
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Application
Application
Application
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
10%
10%
10%
20%
10%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
10%
10%
20%
20%
20%
20%
20%
20%
20%
Jackson / Billabong / Sandfire
Jackson / Billabong / Sandfire
Jackson / Sandfire
Billabong / Sandfire
Jackson / Billabong / Sandfire
Billabong / Sandfire
Sandfire
Billabong
1, 2, 3
1, 2, 3
1, 2
2, 4, 5
1, 2, 3
2, 4
2
4
Billabong / Sandfire
2, 4, 6
Sandfire
Sandfire
Sandfire
Billabong / Sandfire
Billabong / Sandfire
Billabong / Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Billabong / Sandfire
Billabong / Sandfire
Billabong
Billabong / Sandfire
Sandfire
Billabong
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Jackson / Billabong
Jackson / Billabong
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
Sandfire
2
2
2
2, 4
2, 4
2, 4
2
2
2
2
2
2
2
2, 4, 6
2, 4, 6
4, 6
2, 4, 6
2, 6
4, 6
2
2
2
2
2
2
2
2
2
2
2
2
1, 4
1, 4
2
2
2
2
2
2
2, 6
ANNUAL REPORT 30 JUNE 2023
Page 74 of 75
TENEMENT SCHEDULE
Project/Tenement
Karonie Project
E28/2575
E28/2576-I
E28/2601
E28/2619
E 28/2643
E28/2657
E28/2667
E28/2668
E28/2681
E28/2752
E28/2880
E28/2940
E28/2976
E28/3098
E28/3207
E28/3335
Lake Rebecca Project
E28/3006
E28/3008
E28/3035
E28/3039
E28/3048
E28/3053
E28/3058
E28/3059
E28/3063
E28/3064
E28/3006
E28/3008
Lachlan Projects
EL5878 - Overflow
EL7941 - Overflow
EL8267 - Overflow Nth
EL8356 - Yellow Mtn
EL8192 - Eurow
EL8318 - Girilambone
EL8631 - West Lynn
EL8711 - Woodsreef
State
Western Australia
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Western Australia
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
New South Wales
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
Status
Interest
Co-holder
Notes
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Application – Ballot
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80%
80%
80%
80%
80%
80%
80%
80%
Develop Global Limited
Develop Global Limited
Develop Global Limited
Develop Global Limited
Develop Global Limited
Develop Global Limited
Develop Global Limited
Develop Global Limited
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
8
8
8
8
8
8
8
8
Notes:
1.
2. Sandfire Resources NL (ASX: SFR) holds a 70-80% interest (excludes iron ore) in whole or part tenements, with Alchemy free-carried
Jackson Minerals Pty Ltd, a subsidiary of Fe Ltd (ASX: FEL), retains a 20% interest free-carried to a decision to mine.
up to completion of a pre-feasibility study.
3. Billabong Gold Pty Ltd holds a 70% interest in whole or part of tenement.
4. Billabong Gold Pty Ltd holds an 80% interest in whole or part of tenement.
5. PepinNini Robinson Range Pty Ltd retains a 1% NSR on iron ore.
6. Carey Mining Iron Ore JV: Alchemy has 100% mineral rights for all minerals, excluding iron ore where ownership is Alchemy 50% /
Carey Mining 50%.
7. Goldtribe Corporation Pty Ltd, a subsidiary of Alchemy Resources Ltd, holds a 100% interest in the tenement.
8. Alchemy Resources (NSW) Pty Ltd, a subsidiary of Alchemy Resources Ltd, holds a 80% interest with Develop Global owning the
remaining 20%.
ANNUAL REPORT 30 JUNE 2023
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