ALCHEMY RESOURCES LIMITED
ABN 17 124 444 122
ANNUAL REPORT
For the year ended 30 June 2024
ANNUAL REPORT 30 JUNE 2024
Page 1 of 84
CONTENTS
CORPORATE DIRECTORY ................................................................................................................................................... 2
CHAIR’S LETTER ..................................................................................................................................................................... 3
KEY INVESTMENT HIGHLIGHTS ...................................................................................................................................... 4
REVIEW OF ACTIVITIES ....................................................................................................................................................... 5
AUDITOR’S INDEPENDENCE DECLARATION ........................................................................................................... 49
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024 ......................................................................................................................... 50
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024 ......................................... 51
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2024 ......... 52
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024 ......................... 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2024 ....................................................................................................................................................................... 54
CONSOLIDATED ENTITY DISCLOSURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2024 ................. 75
DIRECTORS’ DECLARATION ............................................................................................................................................ 76
INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................................... 77
ADDITIONAL SHAREHOLDER INFORMATION AS AT 16 SEPTEMBER 2024 ................................................. 81
TENEMENT SCHEDULE ..................................................................................................................................................... 83
ANNUAL REPORT 30 JUNE 2024
Page 2 of 84
CORPORATE DIRECTORY
DIRECTORS & MANAGEMENT
Lindsay Dudfield
Non-Executive Chair
Liza Carpene
Non-Executive Director
Anthony Ho
Non-Executive Director
James Wilson
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:
+61 (8) 9481 4400
Facsimile:
+61 (8) 9481 4404
Email:
admin@alchemyresources.com.au
Web:
www.alchemyresources.com.au
AUDITORS
BDO Audit 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
ASX Code:
ALY
ANNUAL REPORT 30 JUNE 2024
Page 3 of 84
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 2024.
The 2024 financial year was a particularly challenging period for junior explorers with difficult equity
and commodity market conditions resulting in subdued investor interest in the sector. However, despite
these headwinds we continued to advance our portfolio in readiness to capitalise on the inevitable
change in investor sentiment that lies ahead.
In last year’s Chair’s letter, I noted that 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. During the period iron ore
was added to the mix following the announcement of high-grade rock chip results from our Valley Bore
Iron Ore prospect in the Bryah Basin.
A significant achievement during FY2024 was completion of an access agreement with the Traditional
Owners of the land at Alchemy’s Overflow, Yellow Mountain and West Lynn projects in New South
Wales. We are particularly excited about the potential at Yellow Mountain, a very promising base metal-
gold target which has not been explored since 1986, and this agreement, which was close to five years
in the making, paves the way for drilling to commence early 2025.
We made further progress at our 100% owned Karonie and Lake Rebecca projects in Western Australia
with soil sampling outlining broad lithium anomalism over large areas at the Roe Hills and Manhattan
prospects. Karonie and Lake Rebecca are also very prospective for gold and Alchemy plans to build on
the 111,000oz3 gold resource already delineated at Karonie in the coming period.
The Bryah Basin Gold Joint Venture, also in WA, continued to be explored at no cost to Alchemy by
partner Catalyst Metals (ASX: CYL). Given record gold prices Catalyst is evaluating the potential to
include the Hermes South deposit (and any additional resources outlined at the Joint Venture) as open
pit feed for their Plutonic Mine, 65km to the north-east.
As noted above, Alchemy confirmed high-grade iron ore outcrops at Valley Bore, following the
withdrawal of Sandfire Resources (ASX: SFR) from the Bryah Basin Base Metals Joint Venture.
Surprisingly Valley Bore has never been drilled, with early drill testing a high priority for the Company.
Alchemy’s portfolio includes several high-quality, drill ready targets, any one of which could add
significant value to the Company on exploration success, and full credit must go to CEO James Wilson
and the rest of our small but dedicated team for their hard work and persistence in advancing these
opportunities during FY2024.
I would also like to thank my fellow Board members and you, our shareholders, for your support and
patience over the past year and we look forward to early success in the coming period.
Lindsay Dudfield
Chair
ANNUAL REPORT 30 JUNE 2024
Page 4 of 84
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 / Iron Ore
Joint-venture funded exploration for high-grade gold, base and iron ore metals in a highly prospective
metallogenic province.
CORPORATE
On 27 November 2023, 5,000,000 unquoted options exercisable at $0.022 expired. On 31 December
2023, 10,000,000 unquoted performance rights, 7,000,000 unquoted options exercisable at $0.0252 and
250,000 unquoted options exercisable at $0.025 expired.
On 29 December 2023, 9,000,000 unquoted options exercisable at $0.025, 5,000,000 unquoted options
exercisable at $0.04 and 6,000,000 unquoted options exercisable at $0.06, all expiring three years from
issue, were issued to James Wilson, employees and contractors.
On 10 April 2024 Alchemy announced the appointment of BDO Audit Pty Ltd as the Company’s auditor
following the resignation of BDO Audit (WA) Pty Ltd (“BDO WA”), as a result of BDO WA restructuring
its audit practice.
ANNUAL REPORT 30 JUNE 2024
Page 5 of 84
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 (“JV”) Agreement with Develop Global Ltd (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 Alchemy operates 100% owned base metal and iron ore
projects, and for gold with farm-in and joint venture partners Billabong Gold Pty Ltd (“Billabong”), a
subsidiary of ASX listed Catalyst Metals Ltd (ASX: CYL) (“Catalyst”) (Figure 1).
Figure 1: Alchemy Resources’ Project Location Map
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 6 of 84
Exploration over the last 12 months focussed on the Karonie, Lake Rebecca and Bryah Projects in
Western Australia and the Overflow and West Lynn Projects in New South Wales. The Western Australian
work included a continuation of reverse circulation (“RC”) drilling at the lithium targets at Cherry,
Hickory, Mesquite and Pecan and gold targets at Challenger. Soil sampling focussed on expanding on
testing regional projects at Roe Hills and Manhattan to advance targeting for future drill programs.
Multiple heritage clearance surveys were conducted to facilitate drill access into Taupo and the
Cherry/Hickory areas. In New South Wales, work saw the completion of the right to negotiate process
to gain access into Yellow Mountain and on producing a maiden Resource statement for the Overflow
Project, and the execution of an option agreement with Ionick Metals Ltd for the West Lynn Project. In
the Bryah Basin, Alchemy regained 100% of the base metals projects formerly held by Sandfire
Resources Ltd (ASX: SFR) with early mapping and sampling work on the Valley Bore iron ore targets
showing significant potential at an early stage.
Alchemy’s strategy for the next 12 months is to:
•
Advance the lithium and gold 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 targeting lithium and gold in the northern and western Karonie
Tenure at Roe Hills and Manhattan Prospects.
•
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,
and Melrose.
•
Closely monitor exploration and Hermes South activities undertaken by Billabong within the Bryah
Basin JV.
•
Undertake systematic exploration in the 100% owned Bryah tenure, with a focus on advancing the
Valley Bore and Old Highway iron ore targets.
•
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 includes 13 exploration licences covering ~722km2 of highly prospective
mineralised structures within Kurnalpi Terrain greenstones 100km east of Kalgoorlie (Figure 2). The
Project is located along strike of Silver Lake Resources Ltd’s (ASX: SLR, “Silver Lake”) Aldiss Mining
Centre (reserves/resources of over 595,000oz @ 2.0g/t Au1), is within 50km of Silver Lake’s Randalls
processing plant and covers 38km of the under-explored, gold endowed Claypan Shear Zone
commencing just 12km along strike to the south of Ramelius Resources Ltd’s (ASX: RMS, “Ramelius”)
Bombora deposit (resource of 1.7Moz @ 1.6g/t Au2). Alchemy announced a maiden Resource for the
KZ5, Taupo and Parmelia prospects of 111koz in August 20213.
1 Refer to SLR ASX announcement dated 15 September 2021 ‘Mineral Resource, Ore Reserve Statement and Outlook to FY24’
2 Refer to Breaker Resources NL (ASX: BRB) ASX announcement dated 20 December 2021 ‘Lake Roe Gold Project Mineral Resource Update’
3 Refer to ALY ASX announcement dated 31 August 2021 ‘Maiden 111,100oz JORC 2012 Resource at Karonie’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 7 of 84
Figure 2: Alchemy Resources’ Karonie and Lake Rebecca Project Location Map
During the year, Alchemy’s work focussed on the completion of mapping and follow-up RC drill testing
of the Cherry, Hickory, Mesquite and Pecan targets. Mapping at the Mesquite prospect discovered
lithium mineralisation with coarse lepidolite crystals in pegmatite outcrops mapped over a 1,200m strike
extent. Rock chips assays returned peak values of 0.45% Li2O, 141ppm Cs, 33.6ppm Ta2O₅ and 4,030ppm
Rb4.
A strategic review of lithium targets was completed across the Lake Rebecca and Karonie tenure by an
external lithium focussed consultant. The review generated numerous additional targets for follow-up
4 Refer to ALY ASX announcement dated 27 October 2023 ‘Lithium and Gold Exploration Update’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 8 of 84
and highlighted that existing targets have yet to be effectively tested by drilling. Planning is underway
to bring these targets into the exploration pipeline over the next 12 months.
Infill soil sampling was completed at Taupo North. Results showed a broad zone of anomalism across
a 3km wide zone with coincident pathfinder anomalism. A cultural heritage survey was undertaken at
the Taupo Prospect which will facilitate drilling access for future lithium and gold exploration drill
programs.
Soil sampling was also undertaken at Roe Hills and Manhattan Prospects which returned multiple
anomalous areas over both project areas. Infill soil sampling has since been undertaken to further refine
the targets which are up to 12km x 6km in size.
At Lake Rebecca, project wide pXRF soil geochemistry sampling was completed in November 2023.
Results showed that anomalism was too low level for pXRF to be a reliable tool and soil chemical assays
will be used going forward.
Diamond core drilling was completed at the Challenger gold prospect in September 2023. Results
showed numerous zones of low-grade gold mineralisation within a thick sequence of prospective quartz
dolerites. Follow-up drilling is planned.
Hickory, Mesquite, Pecan and Taupo North RC drilling
At Alchemy’s 100% owned Karonie Gold-Lithium Project in Western Australia, work focussed on follow-
up testing of the Hickory, Mesquite and Pecan lithium targets. The program, which was completed in
June 2023, consisted of 19 holes for 2,562m of RC drilling to test outcropping pegmatites identified
from field mapping and geophysics. The drilling targeted the down dip extent of pegmatites at the base
of the shallow alluvial cover. Results were announced on 28 August 2023⁶.
In the northern areas, abundant quartz veining was observed in multiple holes, however no pegmatites
were intercepted in the corresponding gravity low target. HYRC045 was drilled beneath the previous
spodumene intercept in hole HYRC0065 and returned two intercepts of 0.1% Li2O at 128m and 233m6
downhole suggesting that mineralisation does continue at depth, albeit at low grade. Importantly, the
large gravity low anomaly in the area is still to be adequately explained and could be the result of
differing orientation of the interpreted structures in the north relative to the zones observed in the
south.
5 Refer ALY ASX Announcement dated 13 January 2023 ‘Spodumene and Lepidolite Identified in Pegmatites at Karonie’
6 Refer ALY ASX Announcement dated 28 August 2023 ‘Karonie Exploration Update’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 9 of 84
Figure 3: Karonie RC drill program with assay intercepts⁶
A follow-up RC drill program was commenced in late 2023. The Karonie lithium focussed drill program
consisted of 13 RC drillholes for a total of 1,508m over the Cherry, Hickory, Pecan and Mesquite
prospects. Eight RC drillholes for 871m were drilled at Cherry and Hickory targeting geochemical
anomalies associated with mapped pegmatite outcrops. The drilling intersected multiple thin
pegmatites with the chemical assays showing that the pegmatite system is fertile for over 1,200m, albeit
with broad low-grade intercepts7. Five RC drillholes for 630m were drilled at Mesquite and Pecan to
target pegmatite outcrops that contained coarse lepidolite crystals. Multiple thin pegmatites were
intersected with lepidolite identified in logging in drillhole MQRC009 which indicates the mineralised
zones seen in surface rock chips are persistent at depth. Assay results are shown in Table 1.
7 Refer ALY ASX Announcement dated 7 March 2024 ‘Karonie Lithium Exploration Update’.
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 10 of 84
Figure 4: Cherry / Hickory (LHS) and Mesquite / Pecan (RHS) RC drill program with significant
intercepts and assays and previously released rock chip results⁷
Table 1: Listing of completed RC drillholes⁷
Taupo North RC Drilling
The Taupo North 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 alluvial cover and has no history of lithium exploration. Multi-
element soil sampling was conducted in early 2023. Results showed a broad zone of lithium in soils
Hole ID
Type
Depth
Easting
Northing
RL
Dip
Azimuth
Prospect
From
To
Width
Li2O% Ta2O5 ppm Cs ppm
Ga ppm Nb ppm
Rb ppm Sn ppm
CHRC002
RC
120
460281
6569573
362.2
45
-55
CHERRY
CHRC003
RC
90
460403
6569298
355.6
90
-55
CHERRY
CHRC004
RC
132
460409
6569110
360
90
-55
CHERRY
CHRC005
RC
102
460493
6569090
361.3
90
-55
CHERRY
HYRC047
RC
72
460552
6570331
360.3
90
-55
HICKORY
HYRC048
RC
85
460768
6570175
362.5
90
-55
HICKORY
31
36
5
0.13
8.38
117.8
29
26.2
829
8.8
HYRC049
RC
120
460568
6570143
364.4
90
-55
HICKORY
HYRC050
RC
150
460734
6570038
363.3
90
-55
HICKORY
52
53
1
0.14
10
240
35
37
1450
15
MQRC009
RC
150
460949
6573569
372.8
135
-55
MESQUITE
67
68
a
0.12
12
51.6
43
24
1595
20
MQRC010
RC
150
460849
6573444
368.4
135
-55
MESQUITE
MQRC011
RC
120
460884
6573370
371.7
135
-55
MESQUITE
MQRC012
RC
120
460948
6573332
373.9
135
-55
MESQUITE
PNRC018
RC
90
461420
6574702
387.4
135
-55
PECAN
NSI
NSI
NSI
NSI
NSI
NSI
NSI
NSI
NSI
NSI
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 11 of 84
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 the Taupo prospect.
RC drilling targeted the down dip extent of pegmatites observed in the two historic drillholes which
were resampled and returned highly anomalous multi-element re-assays. Seven holes were completed
at Taupo North for 948m of drilling. Results indicated multiple shallow dipping lodes with numerous
narrow zones observed in all holes (Figure 5). Pegmatite intercepts were traceable over multiple holes
with varying widths and depths up to 186m downhole.
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% Li₂O, 13ppm Ta₂O₅, 56ppm Cs, 2970ppm Rb and 180ppm Sn8.
The pegmatites coincide with recent rock chips and soil sampling with anomalous zones extending for
a further 3.5km to the south towards Taupo Prospect. 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.
Figure 5: Taupo North cross section 6571930mN showing pegmatite intercepts
Mesquite prospect mapping
Geological mapping continued during the year at the Mesquite Prospect. Field checking of gravity
targets was completed, and a previously unmapped pegmatite discovered on a high priority target area
was found to contain coarse lepidolite and spodumene. Rock chip assays of the outcrop returned peak
values of 2,723ppm Li2O, 167ppm Cs, 62.8ppm Ta2O₅ and 2,390ppm Rb9. Additional detailed mapping
at this area has identified multiple pegmatite outcrops which contain coarse lithium minerals including
8 Refer ALY ASX Announcement dated 28 August 2023 ‘Karonie exploration update’
9 Refer ALY ASX Announcement dated 19 May 2023 ‘Lepidolite and Spodumene discovered on new target areas’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 12 of 84
lepidolite and petalite. Six rock chip samples were taken from various locations around the high priority
target areas. Several previously unmapped pegmatite bodies were discovered and found to contain
coarse lepidolite and traces of spodumene with assays up to 0.45% Li2O in rock chip PN00410.
Importantly the lepidolite/spodumene occurrences are located at the southern end of the high priority
gravity target area. The pegmatites trend to the north and south for up to 1,200m towards Pecan
Prospect, with the majority of the area under thin alluvial cover. The location of the new outcrops is
shown in Figure 6 below. Photographs of specimens taken from each outcrop are shown in Figure 7
and Figure 8, with sample locations and assay results for the samples received shown in Table 210.
Table 2: Rock chips from Mesquite Prospect, sample locations and assay results
10 Refer ALY ASX Announcement dated 27 October 2023 ‘Lithium and Gold exploration update’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 13 of 84
Figure 6: Mesquite mapping (light blue) showing new lithium-caesium-tantalum (“LCT”) pegmatites
with assays from rock chips
Figure 7: Rock chip PN002 showing coarse lepidolite crystals in pegmatite with assay of 0.16% Li₂O
Figure 8: Rock chip PN004 showing coarse lepidolite crystals in pegmatite which returned 0.45% Li₂O
Hickory and Taupo North Soil Sampling
Soil sampling at the area between Hickory and Taupo North was completed during the year4. The
program aimed to infill soil sampling to the south and east towards Cherry/Hickory. Results show a
broad zone of anomalism across the 3km wide area, which will be field checked. Lithium anomalism
>30ppm in soils is considered worthy of follow-up and is highlighted in Figure 9. The soil sampling
results also showed coincident rubidium, tin, tantalum and gallium pathfinder anomalism over the same
area. Planning is underway to complete a heritage survey on the western side of Taupo North to
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 14 of 84
facilitate upcoming drilling. The gap in sampling is due to an alluvial channel which cross cuts the area
and was not sampled due to the presence of transported material.
Figure 9: Soil Sampling at Taupo North-Hickory area showing lithium results and anomalism⁴
Roe Hills and Manhattan Prospect soil sampling (E28/2681, E28/2667)
Roe Hills lies along a distinctive structural trend from the pegmatite field that hosts Global Lithium
Resources Ltd’s (ASX: GL1) Manna Lithium deposit (51.6Mt @ 1.0% Li2O11), 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 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 north-south strike extent, parallel to the greenstone/granite contact, however most of
the areas around the known mapped dykes are covered by alluvium and it is likely that these areas are
far more extensive than the known outcrops.
The current soil sampling campaign at Roe Hills is aimed at gaining a complete dataset on the western
side of the Cardunia Granite adjacent to the Manna lithium deposit. Wide spaced first pass soil sampling
completed in 2019 identified several lithium pathfinder anomalies, with recent follow up soil sampling
completed on a 400m x 400m offset grid spacing. Results are outlined in Figure 10 and show multiple
large-scale anomalies within a 15km x 3km zone, a 12km x 6km zone and a third area of 3.5km x 3.5km.
11 Refer to GL1 ASX Announcement dated 12 June 2024 ‘43% Increase in Manna Lithium Deposit Mineral Resource’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 15 of 84
The Manhattan prospect sits immediately east of GL1’s Manna project. The area has seen no modern
exploration for lithium and only limited exploration for gold despite being located along the Claypan
Shear which extends up towards Ramelius’ Lake Roe gold deposit nearby.
At Manhattan prospect, broad lithium anomalism has been recorded in wide spaced soils over a 10km
x 6km zone. This area, which has yet to be field checked, has significant surface cover and little mapped
outcrops.
Figure 10: Roe Hills (E28/2681) and Manhattan Prospect (E28/2667) soil sampling results (Li ppm)12
Geochemical review completed on Karonie and Lake Rebecca lithium projects
Alchemy conducted multiple programs of regional multi-element soil sampling in 2022 generating
numerous lithium targets4. As part of a strategic review of targets, the data was reviewed by an external
lithium focussed consultant for analysis. The outcomes of the report proposed numerous areas for
follow-up including:
12 Refer to ALY ASX Announcement dated 29 May 2024 ‘Karonie Exploration Update’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 16 of 84
•
Hickory: Drilling at Hickory failed to adequately test the surface LCT anomalies. Follow up drilling
was completed in December 2023 to test these targets with no significant results noted in assays.
•
Mesquite/Pecan: These areas remain largely untested given the presence of LCT pegmatites in
the rock chip data, this has been further enhanced by the reported rock chip data.
•
Taupo North: Drilling has intersected intermediate and border zone LCT pegmatites which may
indicate the outer edges of a mineralised system. Further drilling is planned once heritage
surveys have been completed.
•
Red Oak and Alder: Proposed infill geochemistry on multiple regional soil anomalies.
•
Middle Tank Prospect (new): Area of interest over 900m in strike and characterised by coincident
Li, Cs, Ta, Rb and Rb:K ratios along with elevated auriferous pathfinder elements (Ag, Bi, Mo, Sb,
W), which requires infill.
•
Roe Hills: Regional soil geochemistry to evaluate the prospectivity of wall zone pegmatites,
which has now been completed and outlined significant large-scale anomalies to test.
Heritage Survey completed at Taupo.
A cultural heritage survey was completed during the year. A survey team comprising the registered
Native Title Holders of the Kakarra People, an independent anthropologist and Alchemy staff reviewed
sites of proposed drilling in the Taupo to Taupo North areas including proposed new access tracks and
drilling areas. The survey found no areas of significance and approval was obtained from the traditional
owners for future exploration.
Figure 11: Heritage survey with Kakarra Native Title representatives and James Wilson (Alchemy CEO)
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 17 of 84
Figure 12: Kakarra Heritage Survey Area and previous survey areas
Challenger Prospect diamond drill program
Diamond drilling at Challenger commenced in early September 202313 with assays received in October
2023. Mineralisation is hosted within a thick high-Fe quartz dolerite sill, which is a similar host rock to
the mineralisation at Ramelius’ Bombora deposit. A significant Au-Bi-Mo-Te-W-Sb anomaly, which is
considered the best pathfinder for gold mineralisation in the district, has been recognised from aircore
drilling in the area.
The quartz dolerite target units were observed up to 104m thick downhole in CHDD002, and it was also
observed where alteration and sulphide intensity increased with veining. Additionally, the major shear
structure, “the Challenger Shear”, was intercepted and is traceable on magnetics over several kilometres
on geophysics.
13 Refer to ALY ASX Announcement dated 5 September 2023 ‘Challenger Diamond Drilling Commenced’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 18 of 84
The Challenger Shear structure was observed in CHDD002 but not in CHDD001, which suggests
potential offsets or further structural complexity. Importantly the Challenger target zone is interpreted
to be around 550m long where the quartz dolerite intercepts the Challenger Shear, which has led to
numerous additional target areas to be generated shown in Figure 13. Assay results are shown below
in Table 3. Follow-up drilling is planned to target the areas along the Challenger Shear in 2024.
Table 3: Challenger assay results10
Figure 13: Challenger Prospect location (LHS) and target areas and recent drilling (RHS)
Hole ID
From (m)
To (m)
Interval (m)
Au g/t
CHDD001
147
150
3
0.62
CHDD002
113
118
5
0.43
incl.
116
117
1
1.4
CHDD002
124.54
126.65
2.11
0.4
CHDD002
131
133
2
0.21
CHDD002
142
145
3
0.57
incl.
144
145
1
1.42
CHDD002
154
156
2
0.32
CHDD002
160.3
163
2.7
0.32
incl.
160.3
160.77
0.47
1.02
CHDD002
178.1
184
5.9
0.18
CHDD002
196
196.4
0.4
0.32
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 19 of 84
LAKE REBECCA PROJECT (WA) (Alchemy 100%)
The Lake Rebecca Project consists of 9 tenements covering 524km2 of tenure. The tenements are
located to the south-east of the Northern Star Resources Ltd’s (ASX: NST) Carosue Dam operations, and
along strike to the north of Ramelius’ Bombora gold deposit in the Eastern Goldfields, WA. The
tenements cover prospective greenstones, granitic intrusives, and known gold bearing structures within
the Bombora-Carosue Dam region.
Project wide soil sampling was completed during the year covering high priority targets at Lake Rebecca.
The sampling was designed to provide completed coverage across the tenure to assess lithium and rare
earth prospectivity. Samples were initially analysed using pXRF, with chemical assay follow-up for zones
considered to be anomalous.
Results of the pXRF study have been largely inconsistent versus selected chemical assays, which the
Company believes is due to the low level of lithium anomalism thresholds in the region which makes
the pXRF an unsuitable tool to use for lithium target vectoring. Follow-up work is planned in late 2024.
LACHLAN FOLD BELT / COBAR BASIN PROJECTS (NSW) (Alchemy 80%)
The Lachlan Projects cover an area of 674km2 of the Central Lachlan Orogen in New South Wales and
comprise three project areas prospective for Cobar-style epithermal gold and base metals and copper-
gold porphyry 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.
In April 2024, the Company completed its Right to Negotiate Process with the Ngemba, Ngiyampaa,
Wangaaypuwan and Wayilwan People (“NNWW”) over the West Lynn (EL8318, EL8631) and Yellow
Mountain (EL8356) Project areas. This involved execution of a Land Access Agreement which has been
in process since 2020 and was completed in April 2024. Ministerial Approval was also required and was
obtained subsequent to the end of the period in August 2024. The agreement paves the way for access
into the high-grade Yellow Mountain Project areas which has not seen modern exploration since the
1980s.
Overflow Maiden Resource Estimate (“MRE”)
The Company finalised a maiden 342koz AuEq MRE at 1.30g/t AuEq (Inferred, 0.7g/t AuEq cut-off) on
the Overflow deposit during the year14. The Overflow Gold-Base Metal Project consists of four
exploration licences located over a 50km long section of the Gilmore Suture at the intersection of the
Lachlan Transverse Fault Zone within the well-endowed Cobar Basin (Figure 14). The project is highly
prospective for epithermal, porphyry Cu-Au, and Cobar-style Au and base-metal mineralisation.
14 Refer to ALY ASX Announcement dated 20 October 2023 ‘Maiden 342koz Mineral Resource at Overflow Project’ and NSW DIGS
Open File Report (GS1979389) – Aberfoyle Exploration for licence 774 and 816- Report dated December 1979
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 20 of 84
At a 0.7g/t AuEq cut-off grade, Overflow contains 8.189Mt at 1.30g/t AuEq for 342koz AuEq as shown
in Tables 4 and 5 below.
Cut-off grade
AuEq
Tonnes
AuEq ppm
Au ppm
Ag ppm
Cu ppm
Pb ppm
Zn ppm
0.7
8,189,000
1.30
0.5
54.7
357
2,549
5,236
Note: Totals may not add due to rounding differences
Table 4: Overflow Project Inferred Mineral Resource Estimate (0.7g/t Au cut-off)14
Cut-off
grade AuEq
g/t
Tonnage
AuEq
g/t
AuEq
ounces
Au g/t
Ag g/t
Cu ppm
Pb ppm
Zn ppm
0.5
9,955,000
1.17
374,500
0.5
46.9
364
2,408
4,976
0.7
8,189,000
1.30
342,300
0.5
54.7
357
2,549
5,236
0.8
7,504,000
1.35
325,700
0.5
57.7
350
2,604
5,332
1.0
5,669,000
1.49
271,600
0.6
60.4
378
2,911
5,882
1.5
1,425,000
2.29
104,900
1.5
34.2
694
5,269
10,184
2.0
688,000
2.95
65,300
2.1
23.6
759
6,686
12,888
2.5
422,000
3.40
46,100
2.4
25.7
766
7,987
15,367
3.0
253,000
3.85
31,300
2.7
28.6
820
9,623
18,337
Note: Totals may not add due to rounding differences
Table 5: Overflow Inferred MRE cut-off grade comparison
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 21 of 84
Figure 14: Overflow Inferred MRE location map and nearby operations
There is substantial potential to expand the current JORC MRE through additional drilling, as the deposit
remains open along strike and at depth. Alchemy’s Overflow tenements cover prospective structures
and host rocks which extend approximately 30km to the north and 40km to the south of the MRE, and
remain poorly tested by modern exploration methods (Figure 13). Mineralisation is interpreted to be a
multigenerational reactivated fault zone that has developed on a stratigraphic unconformity between
the Babinda Volcanics and Ordovician Girilambone Group. The late cross structures are believed to
reactivate mineralisation, upgrading the metal content. There are several cross structures regionally that
remain untested.
“Regional Target 1” is a completely untested intersection between the Overflow Shear and an east-west
structure. At “Regional Target 2”, multiple interpreted cross structures intersect both the Overflow Shear
and the Overflow Splay. Results from drilling at “Regional Target 2” conducted in 1978 by Aberfolye
included 19m @ 0.33% Pb from 19m in BOBP2, and 0.28m @ 5.1% Cu from 106.51, and 0.7m @ 6.8%
Cu and 1.2% Pb from 149.41m in BO1A4.
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 22 of 84
Figure 15: Overflow regional Exploration potential with target areas
Ionick Metals Ltd Option Transaction
The Company announced an option agreement had been signed with Ionick Metals Ltd (“Ionick”) over
its interest in two Exploration Licences at West Lynn (EL8318 and EL8631) which are located near Cobar,
NSW (“Agreement”)15. The Agreement with Ionick provides a potential value accretive opportunity for
shareholders of the Company, via the spin out of its non-core nickel-laterite and alumina assets into a
separate vehicle, being Ionick, currently a wholly owned subsidiary company of Helix Resources Ltd
(ASX: HLX, “Helix”).
The West Lynn Ni-Co Agreement covers the nickel-cobalt rights on Exploration Licences EL8318 and
EL8631 which are held in the ‘Ochre Resources’ JV between Alchemy (80%) and subsidiaries of Develop
(20%) (refer Figures 16 and 17). West Lynn is an advanced project located 10km west of Nyngan and
40km north of Ionick’s nickel mineral rights. West Lynn has an Inferred MRE containing 21.3Mt @ 0.84%
Nickel and 0.05% Cobalt (180kt of nickel and 11kt of contained cobalt)16. The project also contains an
additional Alumina Resource of 6.6Mt @ 20.8% Al20317.
15 Refer ALY ASX announcement 9 November 2023 ‘West Lynn option agreement executed with Ionick Metals Ltd’
16 Refer ALY ASX Announcement dated 19 February 2019 ‘Maiden Mineral Resource Estimate – West Lynn Project NSW’
17 Refer ALY ASX Announcement dated 19 June 2019 ‘Maiden Alumina Resource Estimate – Summervale Project NSW’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 23 of 84
Under the Agreement, Ionick has the option to acquire 80% of the ‘nickel-cobalt minerals’ (comprising
nickel, cobalt, platinum group metals, scandium and aluminium) with Develop retaining its existing 20%
interest. The Ochre JV retains 100% ownership of all the non-nickel-cobalt minerals14,18.
Figure 16: Helix/Ionick and Alchemy Projects location18
18 Refer HLX ASX announcement dated 9 November 2023 ‘Ionick Metals Increases Ni Resources ahead of proposed IPO’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 24 of 84
Figure 17: Helix/Ionick and Alchemy Projects location18
BRYAH BASIN PROJECTS (WA)
Gold Exploration (Alchemy 20%)
Exploration of Alchemy’s tenements that cover the gold prospective part of the Bryah Basin Project
(Figures 18 and 19) continued under a farm-in and JV arrangement with Billabong (“Billabong Gold
JV”), now a subsidiary of Catalyst. Billabong now has an interest in 18 tenements in the Three Rivers
(“Bryah Basin JV”) Project.
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 the commencement of mining.
No field work was completed during the year.
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 25 of 84
Base Metals Exploration (ALY 100%)
In December 2023, Sandfire Resources Ltd (“Sandfire”) notified the Company of its intent to re-assign
its 80% interest in the Bryah Joint Venture to Alchemy via its wholly owned subsidiary Alchemy
Resources (Three Rivers) Pty Ltd (“Three Rivers”)19. Alchemy worked with Sandfire on the transition of
project management and data, with Alchemy taking full control of the project during the year.
Alchemy resumes its position as a dominant holder of base and precious metals tenements in the
Bryah region, hosting an extensive database with an estimated exploration spend of over $18m to
date. Sandfire’s exit from the Bryah Basin JV tenements provides Alchemy and its shareholders with
autonomy and flexibility to pursue ongoing exploration of its assets in the Bryah Basin.
Figure 18: Alchemy (Three Rivers) Bryah project location
Valley Bore Iron Ore (50%)
Iron ore potential in the Robinson Range was first outlined in work by the GSWA in the 1970s which
outlined the Valley Bore and Old Highway target areas. Work completed by Alchemy in 2008 and 2009
included detailed mapping and sampling of the outcrops at Valley Bore and Old Highway prospects. In
May 2024, Alchemy geologists conducted a reconnaissance mapping and sampling trip to Valley Bore
prospect. Twenty (20) rock chip samples were collected from the banded iron formation (“BIF”) outcrops
within the Valley Bore prospect on M52/844-I20. This area is dominated by two distinct northeast
trending ridges comprised of BIF, banded chert, siltstone, haematitic shales, and massive hematite
lenses (Figure 20). Alchemy retains the rights to 100% of the mineral rights for all minerals except iron
ore through the Carey Mining Pty Ltd (“Carey Mining”) Iron Ore JV (Alchemy 50%, Carey Mining 50%),
with Alchemy having a Right of First Refusal over Carey Mining’s interest.
19Refer to ALY ASX Announcement dated 29 January 2024 ‘Alchemy to re-acquire Sandfire Bryah JV interest.’
20 Refer to ALY ASX Announcement dated 31 May 2024 ‘Exceptional High Grade Iron Ore at Valley Bore’
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 26 of 84
Figure 19: Alchemy (Three Rivers) Bryah Basin and Catalyst JV project location
Northern Ridge Target:
The northern ridge in the Valley Bore area is characterised by numerous banded iron and banded chert
formations which outcrop for approximately 1.5km along strike. Hematite and goethite rich units of BIF
are observed. These lenses are between 5 and 15 metres thick and are interpreted to extend along strike
to the southwest, with historic sampling of hematite outcrop returning grades up to 61.91% Fe (Figure
20 and 21)20.
Southern Ridge Target:
The southern ridge of the Valley Bore area is dominated by laterally extensive hematite units, several
BIFs and banded chert units. The massive hematite unit can be followed along strike for over 800 metres
in strike and ranges from 10m to 100m wide (Figure 21). High grade rock chip assays were received,
including up to 65.3% Fe in sample VB005. This unit is interpreted to continue along strike with recent
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 27 of 84
mapping confirming hematite outcrop assays up to 60.2% Fe in sample VB001, approximately 750m to
the southwest of Southern Ridge Target.20
Old Highway Target:
The Old Highway target lies in the south-east corner of tenement E52/1582 (Figure 20 and 23). The area
is dominated by a long, northeast trending ridge consisting of inter-bedded siltstone, banded chert,
and minor BIFs. Iron enrichment and hematite lenses are observed within the BIFs and on the eastern
end of the ridge. High grade iron ore enrichment is related to hematite within a fold hinge on the
eastern side of the prospect. Previous sampling returned grades within the high-grade hematite zone
up to 64.09% Fe (Figure 23)20.
Figure 20: Valley Bore and Old Highway prospect location
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 28 of 84
Figure 21: Valley Bore mapping, with recent and previous rock chip results (% Fe)20
Figure 22: Valley Bore mapping, Southern Ridge target showing hematite outcrops and rock chip
assays (% Fe). ALY recent samples (large text), and historical ALY assays (small text)20
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 29 of 84
Figure 23: Old Highway prospect mapping, showing hematite outcrops and historic rock chip assays
(results in % Fe)20
Table 6: Valley Bore rock chip assays20
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 30 of 84
Figure 24: Rock chip samples with assay results from Valley Bore Southern Ridge target20
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 31 of 84
Figure 25: Outcropping hematite from Southern Ridge target at Valley Bore
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 32 of 84
Figure 26: Outcropping hematite from Southern Ridge target at Valley Bore
REVIEW OF ACTIVITIES
ANNUAL REPORT 30 JUNE 2024
Page 33 of 84
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 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 2024
Page 34 of 84
DIRECTORS’ 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 2024.
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 2024 was
$1,480,906 (2023: $712,569).
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.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 35 of 84
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.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 36 of 84
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 $1,065,267 (2023: $305,660) were written off during the year
in accordance with the Group’s accounting policy.
As at 30 June 2024, the Group had net assets of $13,251,211 (2023: $14,621,911) including cash and cash
equivalents of $3,012,655 (2023: $5,005,228).
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 37 of 84
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
As announced on 30 September 2024, Alchemy, via its wholly owned subsidiary Goldtribe Corporation
Pty Ltd (“Goldtribe”), has entered into a farm-in and joint venture (“JV”) agreement with Japan
Organization for Metals and Energy Security (“JOGMEC”). The JV covers sections of the Roe Hills target
areas covering 248km2 of Alchemy’s 694km2 Karonie Lithium and Gold Project. The areas are considered
highly prospective for the discovery of lithium similar in style to the neighbouring Manna lithium deposit
owned by GL1 located in the adjacent tenure to the east. Pursuant to the JV agreement, JOGMEC has
the right to earn 51% interest by expending $6,000,000 by 31 March 2029 with a minimum expenditure
commitment of $600,000 by 31 March 2025. Alchemy will manage exploration during the farm-in
period. The farm-in and JV is subject to Australian Foreign Investment Review Board approval.
Apart from the above, 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 2024,
however reporting requirements may change in the future.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 38 of 84
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 Lithium
Limited (ASX: JLL) and is currently Executive Director of JLL. 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 Lithium Ltd (appointed 1996)
Non-Executive Director of Energy Metals Ltd (ASX: EME) (appointed 2004)
Non-Executive Director of Dynamic Metals Ltd (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
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 Limited and Newland Resources Limited, and previously held various site
and Perth based management roles with Great Central Mines, Normandy Mining,
Newmont Australia, Agincourt Resources and Oxiana.
Other current directorships
Non-Executive Director of RLF Agtech Ltd (ASX: RLF) (appointed 2021)
Former directorships in last 3
years
Non-Executive Director of Mincor Resources NL (appointed 2018) (resigned 2024)
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
A Ho, Non-Executive Director (appointed 25 November 2011)
Experience and expertise
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.
Other current directorships
Non-Executive Director of Australian Agricultural Projects Ltd (ASX: AAP) (appointed
2003)
Non-Executive Director of Mustera Property Group Ltd (ASX: MPX) (appointed 2014)
Former directorships in last 3
years
Executive Director of Newfield Resources Limited (ASX: NWF) (from 2011 to 16
April 2021)
Special responsibilities
Chair of the Audit Committee
Interests in shares and options
Unlisted Options – Alchemy Resources Limited
2,000,000
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 39 of 84
CHIEF EXECUTIVE OFFICER
Mr Wilson was appointed Chief Executive Officer on 1 January 2021. Mr Wilson is a geologist with more
than 20 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 a number of ASX listed resources and services
companies.
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 2024, and the numbers of meetings attended by each Director were:
Director
Board of Directors
Audit Committee
A
B
A
B
L Dudfield
7
7
2
2
L Carpene
7
7
2
2
A Ho
7
7
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
REMUNERATION REPORT (AUDITED)
The Directors present the Alchemy Resources Limited 2024 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 2023 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)
Loans to key management personnel
m) Other transactions with key management personnel
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 40 of 84
a) Key management personnel covered in this report
Alchemy’s key management personnel are defined as:
Name
Position
L Dudfield
Non-Executive Chair
L Carpene
Non-Executive Director
A Ho
Non-Executive Director
J Wilson
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 2024.
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.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 41 of 84
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.
The maximum annual aggregate Non-Executive Directors’ fee pool limit is $250,000 and was
approved by shareholders at the Annual General Meeting held on 22 July 2008.
Fees for Non-Executive Directors are not linked to the performance of the Group. Non-Executive
Directors’ remuneration may also include an incentive portion consisting of options, subject to
approval by shareholders.
f)
Statutory performance indicators
The Board aims to align executive remuneration to Alchemy’s strategic and business objectives and
the creation of shareholder wealth. The table below shows measures of the Group’s financial
performance over the last five years as required by the Corporations Act 2001. However, these are
not necessarily consistent with the measures used in determining the variable amounts of
remuneration to be awarded to key management personnel. As a consequence, there may not
always be a direct correlation between the statutory key performance measures and the variable
remuneration awarded.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 42 of 84
2024
2023
2022
2021
2020
Total comprehensive loss for the year ($)
1,480,906
712,569
806,117
524,830
390,897
Loss per share (cents)
0.13
0.06
0.09
0.08
0.07
Share price at year end ($)
0.01
0.02
0.01
0.01
0.02
g) Voting and comments made at the Company’s 2023 Annual General Meeting
Alchemy Resources Limited received 98.86% of “yes” votes on its remuneration report for the 2023
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
Share-based
payment
Salary
and fees
Cash
bonus
Non-
monetary
benefit
Super-
annuation
Options and
Performance
Rights
Total
Performance
related
2024
$
$
$
$
$
$
%
Directors
and CEO
L Dudfield
20,000
-
-
-
16,658
36,658
45.3
J Wilson
260,000
-
22,584
28,600
48,587
359,771
13.5
L Carpene
20,000
-
-
-
16,658
36,658
45.3
A Ho
20,000
-
-
-
16,658
36,658
45.3
Totals
320,000
-
22,584
28,600
98,561
469,745
Short-term benefits
Post-
employment
benefits
Share-based
payment
Salary
and fees
Cash
bonus
Non-
monetary
benefit
Super-
annuation
Options and
Performance
Rights
Total
Performance
related
2023
$
$
$
$
$
$
%
Directors
and CEO
L Dudfield
20,000
-
-
-
23,342
43,342
53.9
J Wilson
240,000
-
29,021
25,200
37,775
331,996
11.4
L Carpene
20,000
-
-
-
23,342
43,342
53.9
A Ho
20,000
-
-
-
23,342
43,342
53.9
Totals
300,000
-
29,021
25,200
107,801
462,022
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 43 of 84
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
$28,600 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). The sign-on options expired during the period.
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
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). The Performance Rights expired during the period.
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.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 44 of 84
Number
of
options
Exercise
price
Value
per
option
at
grant
date
Total
Value
$
Director
Grant date
Vesting
date
Expiry date
%
Vested
L Dudfield
29/11/2022
29/11/2023
23/12/2025
2,000,000
$0.0405
$0.02
40,000
100%
L Carpene
29/11/2022
29/11/2023
23/12/2025
2,000,000
$0.0405
$0.02
40,000
100%
A Ho
29/11/2022
29/11/2023
23/12/2025
2,000,000
$0.0405
$0.02
40,000
100%
J Wilson
14/12/2023
29/12/2024
31/12/2026
4,000,000
$0.025
$0.004
16,000
0%
J Wilson
14/12/2023
29/12/2024
31/12/2026
5,000,000
$0.040
$0.004
20,000
0%
J Wilson
14/12/2023
29/12/2024
31/12/2026
6,000,000
$0.060
$0.003
18,000
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 became
exercisable and vested 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 were 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 were subject
to the following vesting conditions:
- Tranche 1: Up to 4,000,000 of the performance rights may have vested related to the Company’s
Market Capitalisation (“Capitalisation”) on 31 December 2023 (“Measurement Date”) as follows:
Where the Capitalisation was:
•
greater than or equal to $50 million then 4,000,000 of the Tranche 1 Performance Rights
would vest on the Measurement Date; or
•
greater than or equal to $25 million but less than $50 million then 2,000,000 of the Tranche
1 Performance Rights would vest on the Measurement Date; or
•
less than $25 million then no Tranche 1 Performance Rights would vest on the Measurement
Date.
- Tranche 2: Up to 4,000,000 of the performance rights may have vested 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
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 45 of 84
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 would 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 would vest on the Measurement Date; or
•
less than 50% outperformance then no Tranche 2 Performance Rights would vest on the
Measurement Date.
- Tranche 3: Up to 2,000,000 of the performance rights would vest if the Company’s share price
was greater than or equal to $0.10 at the Measurement Date.
The above performance rights continued 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
1 Jan 2021
4,000,000
31 Dec 2023
31 Dec 2023
Nil
$0.0089
$35,620
0%
2
1 Jan 2021
4,000,000
31 Dec 2023
31 Dec 2023
Nil
$0.0161
$64,509
0%
3
1 Jan 2021
2,000,000
31 Dec 2023
31 Dec 2023
Nil
$0.0066
$13,196
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.
None of the performance conditions for the tranches were met and the rights expired during the
year.
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.
Options
Opening
balance
Granted as
remuneration
Closing
balance
Vested but
not
exercisable
Vested
and
exercisable
Max
value yet
to vest
2024
Expired
Unvested
Directors
L Dudfield
2,000,000
-
-
2,000,000
-
2,000,000
-
-
L Carpene
2,000,000
-
-
2,000,000
-
2,000,000
-
-
A Ho
2,000,000
-
-
2,000,000
-
2,000,000
-
-
CEO
J Wilson
7,000,000
15,000,000
(7,000,000)
15,000,000
-
-
15,000,000
54,000
Total
13,000,000
15,000,000
(7,000,000) 21,000,000
-
6,000,000
15,000,000
54,000
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 46 of 84
Performance Rights
Open
ing
balan
ce
Granted as
remuneration
Expired
Closing
balance
Vested but
not
exercisable
Vested
and
exercisable
Max
value
yet to
vest
2024
Unvested
Directors
L Dudfield
-
-
-
-
-
-
-
-
L Carpene
-
-
-
-
-
-
-
-
A Ho
-
-
-
-
-
-
-
-
CEO
J Wilson
10,00
0,000
-
(10,000,000)
-
-
-
-
-
Total
10,00
0,000
-
(10,000,000)
-
-
-
-
-
Shareholdings
Opening
balance
On
appointment
Participation in
placement or
entitlement issue
On market acquisition
or disposal
On
resignation
Closing
balance
2024
Directors
L Dudfield
60,880,611
-
-
-
-
60,880,611
L Carpene
2,916,666
-
-
-
-
2,916,666
A Ho
-
-
-
-
-
-
CEO
J Wilson
6,655,399
-
-
2,000,000
-
8,655,399
Total
70,452,676
-
-
2,000,000
- 72,452,676
l)
Loans to key management personnel
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)
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 47 of 84
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Date options granted
Expiry date
Exercise price
Number under option
8 November 2021
8 November 2024
$0.025
1,000,000
8 November 2021
8 November 2024
$0.035
1,000,000
20 June 2022
22 June 2025
$0.034
2,000,000
21 June 2022
22 June 2025
$0.034
1,300,000
17 October 2022
17 October 2025
$0.05
10,000,000
29 November 2022
23 December 2025
$0.0405
6,000,000
14 December 2023
31 December 2026
$0.025
9,000,000
14 December 2023
31 December 2026
$0.04
5,000,000
14 December 2023
31 December 2026
$0.06
6,000,000
41,300,000
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
No ordinary shares of the Company were issued during the year ended 30 June 2024 and up to the
date of this report on the exercise of options granted.
CORPORATE GOVERNANCE STATEMENT
The Company’s 2024 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 ensure 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.
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.
DIRECTORS’ REPORT
ANNUAL REPORT 30 JUNE 2024
Page 48 of 84
Details of the amounts paid or payable to the auditor (BDO Audit Pty Ltd) for audit and non-audit
services provided during the year are set out in note 17. During the year ended 30 June 2024 no fees
were paid or were payable for non-audit services provided by the auditor of the consolidated entity
(2023: $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, 30 September 2024
BDO Audit Pty Ltd ABN 33 134 022 870 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 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.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
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 2024, 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 Pty Ltd
Perth
30 September 2024
ANNUAL REPORT 30 JUNE 2024
Page 50 of 84
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024
Notes
CONSOLIDATED
2024
$
2023
$
Continuing operations
Other income
3
156,234
187,565
Exploration expenditure written off
9
(1,065,267)
(305,660)
Employee expense
3
(212,056)
(270,538)
Corporate expense
(219,510)
(227,880)
Administration expense
3
(140,307)
(96,056)
Loss from continuing operations before income tax
(1,480,906)
(712,569)
Income tax benefit
5
-
-
Loss after income tax for the year attributable to the
owners of Alchemy Resources Limited
(1,480,906)
(712,569)
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
(1,480,906)
(712,569)
Cents
per share
Cents
per share
Loss per share attributable to the owners of Alchemy
Resources Limited
Basic and diluted loss per share
16
0.13
0.06
This Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
ANNUAL REPORT 30 JUNE 2024
Page 51 of 84
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Notes
CONSOLIDATED
2024
$
2023
$
ASSETS
Current Assets
Cash and cash equivalents
6
3,012,655
5,005,228
Trade and other receivables
7
23,766
79,540
Other current assets
8
59,106
43,026
Total Current Assets
3,095,527
5,127,794
Non-Current Assets
Exploration and evaluation
9
10,394,886
9,845,999
Property, plant and equipment
485
1,432
Total Non-Current Assets
10,395,371
9,847,431
TOTAL ASSETS
13,490,898
14,975,225
LIABILITIES
Current Liabilities
Trade and other payables
11
118,041
267,078
Provisions
12
121,646
86,236
Total Current Liabilities
239,687
353,314
TOTAL LIABILITIES
239,687
353,314
NET ASSETS
13,251,211
14,621,911
EQUITY
Contributed equity
13
43,417,654
43,417,654
Reserves
14
408,722
500,904
Accumulated losses
15
(30,575,165)
(29,296,647)
TOTAL EQUITY
13,251,211
14,621,911
This Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2024
Page 52 of 84
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
ATTRIBUTABLE TO EQUITY HOLDERS OF THE ENTITY
Contributed
Equity
$
Option
reserves
$
Accumulated
losses
$
Total
equity
$
At 1 July 2022
38,375,003
193,539
(28,623,748)
9,944,794
Loss for the year
-
-
(712,569)
(712,569)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year, net of
tax
-
-
(712,569)
(712,569)
Transactions with owners in their capacity as
owners
Issue of shares
5,500,000
-
-
5,500,000
Issue of options
100,066
-
-
100,066
Share issue costs
(557,415)
-
-
(557,415)
Options exercised and expired
-
(39,670)
39,670
-
Options expense
-
309,259
-
309,259
Performance rights expense
-
37,776
-
37,776
At 30 June 2023
43,417,654
500,904
(29,296,647)
14,621,911
At 1 July 2023
43,417,654
500,904
(29,296,647)
14,621,911
Loss for the year
-
-
(1,480,906)
(1,480,906)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year, net of
tax
-
-
(1,480,906)
(1,480,906)
Transactions with owners in their capacity as
owners
Options expense
-
110,206
-
110,206
Options expired
-
(202,388)
202,388
-
At 30 June 2024
43,417,654
408,722
(30,575,165)
13,251,211
This Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2024
Page 53 of 84
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Notes
CONSOLIDATED
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(443,137)
(296,566)
Interest received
169,976
83,671
NET CASH FLOWS USED IN OPERATING ACTIVITIES
23
(273,161)
(212,895)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
-
(1,885)
Payments for exploration assets
(1,719,412)
(2,010,725)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(1,719,412)
(2,012,610)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
13
-
5,500,000
Proceeds from exercise of options
13
-
100,066
Share issue costs
13
-
(377,415)
NET CASH FLOWS FROM FINANCING ACTIVITIES
-
5,222,651
Net (decrease)/increase in cash and cash equivalents
(1,992,573)
2,997,146
Cash and cash equivalents at beginning of the year
5,005,228
2,008,082
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
6
3,012,655
5,005,228
This Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
ANNUAL REPORT 30 JUNE 2024
Page 54 of 84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: CORPORATE INFORMATION
The consolidated financial report of Alchemy Resources Limited for the year ended 30 June 2024 was
authorised for issue in accordance with a resolution of the Directors on 30 September 2024.
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: MATERIAL ACCOUNTING POLICY INFORMATION
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 2023, although they did not have any material impact on the current
period or any prior period and are not likely to materially 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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 55 of 84
areas where assumptions and estimates are significant to the consolidated financial statements,
are disclosed where appropriate.
b) Going Concern
The financial statements have been prepared on a going concern basis, which contemplates the
continuity of normal business activity and the realisation of assets and the settlement of liabilities
in the normal course of business. The Group incurred a net loss of $1,480,906 for the year ended
30 June 2024 and had a net cash outflow from operations including exploration expenditure
totalling $1,992,572 for the period. Notwithstanding this, the financial statements have been
prepared on a going concern basis which the Directors consider to be appropriate based upon
the Company’s ability to raise capital in the future to meet committed expenditure.
The ability of the Company to continue as a going concern and meet all planned exploration
commitments on all areas of interest in the 12 months period from the date of these financial
statements, including commitments relating to exploration activity (refer Note 20), is dependent
on the Company being able to raise additional funds as required to meet these ongoing and
budgeted exploration commitments and for working capital. These conditions indicate a material
uncertainty that may cast significant doubt about the Company’s ability to continue as a going
concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the
normal course of business. The Directors believe that they will be able to raise additional capital
as required and are in the process of evaluating the Company’s cash requirements. The Directors
believe that the Company will continue as a going concern. As a result, the financial statements
have been prepared on a going concern basis. Should the going concern basis not be
appropriate, the entity may have to realise its assets and extinguish its liabilities other than in the
ordinary course of business and at amounts different from those stated in the financial statements.
No allowance for such circumstances has been made in the financial statements.
c) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
the Company as at 30 June 2024 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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 56 of 84
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 judgements, 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.
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)
Exploration and evaluation
Exploration and evaluation expenditure in relation to separate areas of interest for which rights
of tenure are current is carried forward as an asset in the statement of financial position where it
is expected that the expenditure will be recovered through the successful development and
exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area
and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been
abandoned, the expenditure incurred thereon is written off in the year in which the decision is
made.
g) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value. For the statement of cash flows presentation purposes, cash and cash
equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities
on the statement of financial position.
h) Issued capital
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 57 of 84
i) 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.
NOTE 3: REVENUE AND EXPENSES
CONSOLIDATED
2024
$
2023
$
Income
Interest income
148,017
102,411
Other income
8,217
85,154
Total income
156,234
187,565
Expenses
Employee expense
Employee benefit and director compensation expense
89,560
89,708
Expense of share-based payments (note 22)
110,206
167,035
Other employee expenses
12,290
13,795
Total employee expense
212,056
270,538
Administration expense
Depreciation
947
453
Occupancy and occupancy outgoings
15,000
40,066
Insurance
27,241
31,451
Other administration expenses
97,119
24,086
Total administration expense
140,307
96,056
Expenses are recognised on an accruals 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 58 of 84
NOTE 5: INCOME TAX
A reconciliation of income tax expense/(benefit) applicable to accounting 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:
CONSOLIDATED
2024
$
2023
$
Accounting loss from continuing operations before income tax
(1,480,906)
(712,569)
At the statutory income tax rate of 30% (2023: 25%)
(444,272)
(178,142)
Add:
- Non-deductible expenses
547
466
- Capital raising costs
(11,964)
(9,970)
- Other deductible expenses
-
(5,584)
- Share-based payment
33,062
41,759
- Tax loss not brought to account as a deferred tax asset
422,627
151,471
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 59 of 84
Deferred income tax
CONSOLIDATED
2024
$
2023
$
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
3,026,440
2,384,812
- Prepayments
17,732
10,756
- Property, plant and equipment
146
358
- Trade and other receivables
-
2,342
3,044,318
2,398,268
Deferred income tax assets
- Trade and other payables
(11,052)
(5,825)
- Employee benefits
(36,494)
(21,559)
- Capitalised expenditure non-deductible for tax purposes
(19,759)
(27,845)
- Tax losses available to offset DTL
(2,977,013)
(2,343,039)
Net deferred tax asset/(liability)
-
-
Tax consolidation
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 2024, Alchemy Resources Limited had $39,703,578 (2023: $37,778,691) 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 60 of 84
NOTE 6: CASH AND CASH EQUIVALENTS
CONSOLIDATED
2024
$
2023
$
Cash at bank and on hand
596,154
238,728
Deposits at call
2,416,501
4,766,500
3,012,655
5,005,228
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 3.23% (2023: 2.21%).
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
CONSOLIDATED
2024
$
2023
$
Current
GST receivable
34,739
65,542
Other net (payable)/receivable
(10,973)
13,998
23,766
79,540
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 61 of 84
NOTE 8: OTHER CURRENT ASSETS
CONSOLIDATED
2024
$
2023
$
Prepayments
59,106
43,026
59,106
43,026
NOTE 9: EXPLORATION AND EVALUATION
CONSOLIDATED
2024
$
2023
$
Opening balance
9,845,999
8,095,770
Exploration expenditure incurred during the year
1,614,154
2,055,889
Exploration expenditure written off
(1,065,267)
(305,660)
Closing balance
10,394,886
9,845,999
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 62 of 84
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
Proportion of ownership
2024
2023
Alchemy Resources (Murchison) Pty Ltd
Exploration
Australia
100%
100%
Alchemy Resources (Three Rivers) Pty Ltd
Exploration
Australia
100%
100%
Goldtribe Corporation Pty Ltd
Exploration
Australia
100%
100%
Alchemy Resources (NSW) Pty Ltd
Exploration
Australia
100%
100%
NOTE 11: TRADE AND OTHER PAYABLES
CONSOLIDATED
2024
$
2023
$
Trade creditors
78,743
214,306
Other creditors and accruals
39,298
52,772
118,041
267,078
NOTE 12: PROVISIONS
CONSOLIDATED
2024
$
2023
$
Current
Employee benefits
121,646
86,236
Short–term obligations
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 63 of 84
NOTE 13: CONTRIBUTED EQUITY
a) Share capital
CONSOLIDATED
2024
$
2023
$
Ordinary shares fully paid
43,417,654
43,417,654
b) Movements in ordinary shares on issue
CONSOLIDATED
Number
$
Balance at 1 July 2022
953,074,057
38,375,003
Placement (1)
220,000,000
5,500,000
Exercise of options (2)
5,002,199
100,066
Share issue costs
-
(557,415)
Balance at 30 June 2023
1,178,076,256
43,417,654
Placement
-
-
Exercise of options
-
-
Share issue costs
-
-
Balance at 30 June 2024
1,178,076,256
43,417,654
(1) 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.
(2) 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.
c) Movements in options on issue
CONSOLIDATED
2024
Number
2023
Number
Balance at beginning of the financial year
33,550,000
55,250,609
Options issued (1) (3)
20,000,000
16,000,000
Options expired or exercised (2) (4)
(12,250,000)
(37,700,609)
Balance at end of the financial year
41,300,000
33,550,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 64 of 84
(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.
(3) 20,000,000 options were granted on 14 December 2023, exercisable at $0.025, $0.04 and $0.06
and expiring on 31 December 2026.
(4) During the year, 12,250,000 options issued on various dates in December 2019, January 2021
and December 2021 with exercise prices of $0.025, $0.025 and $0.022 respectively expired.
d) Movements in performance rights on issue
CONSOLIDATED
2024
Number
2023
Number
Balance at beginning of the financial year
10,000,000
10,000,000
Performance rights expired
(10,000,000)
-
Balance at end of the financial year
-
10,000,000
NOTE 14: RESERVES
CONSOLIDATED
2024
$
2023
$
Opening balance
500,904
193,539
Option expense
91,060
309,259
Performance rights expense
19,146
37,776
Options exercised
-
(15,070)
Expiry of options
(202,388)
(24,600)
Balance at the end of the financial year
408,722
500,904
The options reserve is used to recognise the fair value of options and performance rights issued to
directors, employees and contractors.
NOTE 15: ACCUMULATED LOSSES
CONSOLIDATED
2024
$
2023
$
Balance at the beginning of the financial year
(29,296,647)
(28,623,748)
Net loss attributable to members
(1,480,906)
(712,569)
Lapsed and exercised options transferred from option reserve (note 14)
202,388
39,670
Balance at the end of the financial year
(30,575,165)
(29,296,647)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 65 of 84
NOTE 16: LOSS PER SHARE
CONSOLIDATED
2024
Cents
2023
Cents
Basic and diluted loss per share
0.13
0.06
The following reflects the income and share data used in the calculations of basic and diluted loss per
share:
CONSOLIDATED
2024
$
2023
$
Losses used in calculating basic and diluted loss per share
(1,480,906)
(712,569)
CONSOLIDATED
2024
Number
2023
Number
Weighted average number of ordinary shares used in
calculating basic and diluted loss per share
1,178,076,256
1,110,445,681
Basic loss per share
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.
NOTE 17: AUDITOR’S REMUNERATION
During the financial year the following fees were paid or payable for services provided by BDO, the
auditor of the company, its network firms and unrelated firms:
CONSOLIDATED
2024
$
2023
$
Audit services
BDO Audit (WA) Pty Ltd
- Audit and review of the financial reports
47,236
59,112
Total remuneration
47,236
59,112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 66 of 84
The BDO entity performing the audit of the group transitioned from BDO Audit (WA) Pty Ltd to BDO Audit
Pty Ltd on 10 April 2024. The disclosures include amounts received or due and receivable by BDO Audit (WA)
Pty Ltd, BDO Audit Pty Ltd and their respective related entities.
NOTE 18: CONTINGENT ASSETS AND LIABILITIES
The Group had contingent assets at 30 June 2024 in respect of:
Future royalty payments
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 2024.
NOTE 19: EVENTS OCCURRING AFTER THE REPORTING PERIOD
As announced on 30 September 2024, Alchemy, via its wholly owned subsidiary Goldtribe, has entered
into a farm-in and JV agreement with JOGMEC. The JV covers sections of the Roe Hills target areas
covering 248km2 of Alchemy’s 694km2 Karonie Lithium and Gold Project. The areas are considered
highly prospective for the discovery of lithium similar in style to the neighbouring Manna lithium
deposit owned by GL1 located in the adjacent tenure to the east. Pursuant to the JV agreement,
JOGMEC has the right to earn 51% interest by expending $6,000,000 by 31 March 2029 with a minimum
expenditure commitment of $600,000 by 31 March 2025. Alchemy will manage exploration during the
farm-in period. The farm-in and JV is subject to Australian Foreign Investment Review Board approval.
There have been no further 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 $1,628,808 (2023: $2,703,520) per annum.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 67 of 84
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:
o Interest rate risk
o Credit risk
o 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.
CONSOLIDATED
2024
$
2023
$
Financial assets
Current
Cash and cash equivalents
3,012,655
5,005,228
Trade and other receivables
23,766
79,540
3,036,421
5,084,768
Financial liabilities
Current
Trade and other payables
118,041
267,078
118,041
267,078
Interest rate risk
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 68 of 84
The following tables set out the carrying amount, by maturity, of the financial instruments that are
exposed to interest rate risk:
Floating interest
rate
$
Fixed interest rate maturing in
Non-interest
bearing
$
Total
$
1 year or
less
$
Over 1 to 5
years
$
More than
5 years
$
Consolidated 2024
Financial assets
Cash and cash
equivalents
581,833
2,416,500
-
-
14,322
3,012,655
Trade and other
receivables
-
-
-
-
23,766
23,766
581,833
2,416,500
-
-
38,088
3,036,421
Weighted average
interest rate
1.32 %
3.71%
-
-
-
-
Financial liabilities
Trade and other
payables
-
-
-
-
118,041
118,041
-
-
-
-
118,041
118,041
Weighted average
interest rate
-
-
-
-
-
-
Consolidated 2023
Financial assets
Cash and cash
equivalents
237,226
4,766,500
-
-
1,502
5,005,228
Trade and other
receivables
-
-
-
-
79,540
79,540
237,226
4,766,500
-
-
81,042
5,084,768
Weighted average
interest rate
2.21%
3.42%
-
-
-
-
Financial liabilities
Trade and other
payables
-
-
-
-
267,078
267,078
-
-
-
-
267,078
267,078
Weighted average
interest rate
-
-
-
-
-
-
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:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 69 of 84
2024
$
2023
$
Impact on profit/(loss) and equity
Increase of 100 basis points
29,983
119,164
Decrease of 100 basis points
(29,983)
(119,164)
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 primary exposure to credit risk is tabled below:
CONSOLIDATED
2024
$
2023
$
Cash and cash equivalents
3,012,655
5,005,228
3,012,655
5,005,228
Liquidity risk
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:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 70 of 84
Less than 6
months
$
Contractual
cash flows
$
Carrying amount
$
Consolidated - 2024
Trade and other payables
118,041
118,041
118,041
118,041
118,041
118,041
Consolidated – 2023
Trade and other payables
267,078
267,078
267,078
267,078
267,078
267,078
Capital risk management
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 equity of the Group, comprising issued capital and
reserves, offset by accumulated losses as 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 $110,206 (2023: $167,035). The following
share-based payment arrangements under incentive plans were in existence during the reporting
period:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 71 of 84
Number of
Options
Grant date
Expiry date
Vesting date
Exercise price $
Fair value at
grant date $
250,000
11/12/2019
31/12/2023
11/12/2019
0.025
0.007
7,000,000
1/01/2021
31/12/2023
31/12/2021
0.025
0.009
1,000,000
8/11/2021
8/11/2024
14/09/2022
0.025
0.007
1,000,000
8/11/2021
8/11/2024
14/09/2023
0.035
0.006
5,000,000
18/11/2021
22/11/2023
18/11/2021
0.022
0.005
2,000,000
20/06/2022
22/06/2025
22/06/2023
0.034
0.015
1,300,000
21/06/2022
22/06/2025
22/06/2023
0.034
0.020
10,000,000
17/10/2022
17/10/2025
17/10/2022
0.050
0.018
6,000,000
29/11/2022
23/12/2025
23/12/2023
0.041
0.020
9,000,000
14/12/2023
31/12/2026
29/12/2024
0.025
0.004
5,000,000
14/12/2023
31/12/2026
29/12/2025
0.040
0.004
6,000,000
14/12/2023
31/12/2026
29/12/2026
0.060
0.003
20,000,000 options were granted on 14 December 2023, exercisable at $0.025, $0.04 and $0.06
and expiring on 31 December 2026.
Number of
Rights
Grant date
Vesting date
and
conditions
Expiry date
Exercise price
Value per
right at grant
date
% Vested
4,000,000
1 Jan 2021
Various
31 Dec 2023
Nil
$0.0089
0%
4,000,000
1 Jan 2021
Various
31 Dec 2023
Nil
$0.0161
0%
2,000,000
1 Jan 2021
Various
31 Dec 2023
Nil
$0.0066
0%
10,000,000 performance rights were granted to CEO, James Wilson as a long-term incentive, all
of which expired during the year.
b) Movements in options and performance rights during the year
Movement in the number of options and performance rights held by directors, employees and
advisors:
2024
2023
No. of
options and
performance
rights
Weighted
average exercise
price ($)
No. of
options and
performance
rights
Weighted
average exercise
price ($)
Outstanding at the beginning of the year
43,550,000
0.020
35,550,000
0.018
Granted during the year
20,000,000
0.04
16,000,000
0.026
Expired/exercised during the year
(22,250,000)
0.01
(8,000,000)
0.0231
Outstanding at the end of the year
41,300,000
0.02
43,550,000
0.020
Exercisable at the end of the year
21,300,000
0.04
26,550,000
0.023
The weighted average remaining contractual life of share options outstanding at the end of the
year was 1.83 years (2023: 1.21 years).
The weighted average remaining contractual life of performance rights outstanding at the end of
the year nil (2023: 0.5 years).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 72 of 84
c) Options outstanding at the end of the year
Set out below are the options exercisable at the end of the financial year:
Expiry date
Exercise price ($)
2024 (number)
2023 (number)
31/12/2023
0.03
-
250,000
31/12/2023
0.03
-
7,000,000
8/11/2024
0.03
1,000,000
1,000,000
8/11/2024
0.04
1,000,000
1,000,000
22/11/2023
0.02
-
5,000,000
22/06/2025
0.03
3,300,000
3,300,000
17/10/2025
0.05
10,000,000
10,000,000
23/12/2025
0.04
6,000,000
6,000,000
31/12/2026
0.03
9,000,000
-
23/12/2026
0.04
5,000,000
-
23/12/2026
0.06
6,000,000
-
41,300,000
33,550,000
NOTE 23: RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
CONSOLIDATED
2024
$
2023
$
Cash flows from operating activities
Loss for the period
(1,480,906)
(712,569)
Non-cash flows in profit/(loss):
- Depreciation
947
453
- Share-based remuneration
110,206
167,035
- Exploration expenditure write-off
1,065,267
305,660
-Other non-cash flows
-
1,763
Change in assets and liabilities:
- Decrease/(increase) in trade receivables
18,073
(17,881)
- Increase in prepayments
(16,081)
(1,226)
- Increase in trade creditors and accruals
(6,077)
(1,913)
- Increase in provisions
35,410
45,783
Net cash used in operating activities
(273,161)
(212,895)
Non-cash investing and financing activities
There were no non-cash investing activities during the year.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 73 of 84
NOTE 24: RELATED PARTY DISCLOSURE
a) Parent entity
Class
Country of
incorporation
Investment at cost
2024 ($)
2023 ($)
Alchemy Resources Limited
Ordinary
Australia
-
-
b) Subsidiaries
Class
Country of
incorporation
Investment at cost
2024 ($)
2023 ($)
Alchemy Resources (Murchison) Pty Ltd
Ordinary
Australia
100
100
Alchemy Resources (Three Rivers) Pty Ltd
Ordinary
Australia
100
100
Goldtribe Corporation Pty Ltd
Ordinary
Australia
1
1
Alchemy Resources (NSW) Pty Ltd
Ordinary
Australia
1
1
c) Key management personnel compensation
CONSOLIDATED
2024
$
2023
$
Short-term employee benefits
342,582
329,019
Post-employment benefits
28,600
25,200
Share-based payments
98,261
107,802
469,443
462,021
There were no new related party transactions during the year ended 30 June 2024 and 30 June
2023.
Detailed remuneration disclosures are provided in the remuneration report on pages 39 to 46.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANNUAL REPORT 30 JUNE 2024
Page 74 of 84
NOTE 25: PARENT ENTITY DISCLOSURE
CONSOLIDATED
2024
$
2023
$
Financial Performance
Loss for the year
2,144,103
2,416,482
Other comprehensive income
-
-
Total comprehensive loss
2,144,103
2,416,482
Financial Position
ASSETS
Current assets
3,059,469
5,075,128
Non-current assets
2,774
3,720
TOTAL ASSETS
3,062,243
5,078,848
LIABILITIES
Current liabilities
179,330
162,039
TOTAL LIABILITIES
179,330
162,039
NET ASSETS
2,882,913
4,916,809
EQUITY
Issued equity
43,417,654
43,417,654
Reserves
408,622
500,904
Accumulated losses
(40,943,363)
(39,001,748)
TOTAL EQUITY
2,882,913
4,916,809
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 2024.
ANNUAL REPORT 30 JUNE 2024
Page 75 of 84
CONSOLIDATED ENTITY DISCLOSURE STATEMENT FOR THE YEAR ENDED
30 JUNE 2024
Entity Name
Entity Type
Place formed/
Incorporated
Ownership
interest %
Tax
residency
Alchemy Resources Limited
Body corporate
Australia
N/A
Australia
Alchemy Resources (Murchison) Pty Ltd
Body corporate
Australia
100%
Australia
Alchemy Resources (Three Rivers) Pty Ltd
Body corporate
Australia
100%
Australia
Goldtribe Corporation Pty Ltd
Body corporate
Australia
100%
Australia
Alchemy Resources (NSW) Pty Ltd
Body corporate
Australia
100%
Australia
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with
the Corporations Act 2001. It includes certain information for each entity that was part of the
consolidated entity at the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in
the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as
there are currently several different interpretations that could be adopted, and which could give
rise to a different conclusion on residency. It should be noted that the definitions of ‘Australian
resident’ and ‘foreign resident’ in the Income Tax Assessment Act 1997 are mutually exclusive. This
means that if an entity is an ‘Australian resident’ it cannot be a ‘foreign resident’ for the purposes
of disclosure in the CEDS.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having
regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions
to assist in determining tax residency and ensure compliance with applicable foreign tax legislation.
ANNUAL REPORT 30 JUNE 2024
Page 76 of 84
DIRECTORS’ DECLARATION
The Directors of Alchemy Resources Limited declare that:
a)
in the Directors’ opinion, the financial statements and notes set out on pages 50 to 74 and the
Remuneration Report in the Directors’ Report are in accordance with the Corporations Act 2001,
including:
i)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and
its performance, for the financial year ended on that date; and
ii)
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), Corporations Regulations 2001 and mandatory professional reporting
requirements.
b) the financial statements also comply with International Financial Reporting Standards as disclosed
in note 2; and
c)
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; and
d) the information disclosed in the attached consolidated entity disclosure statement is true and
correct.
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 2024.
Signed in accordance with a resolution of the Directors.
Lindsay Dudfield
Chair
Perth, Western Australia
30 September 2024
BDO Audit Pty Ltd ABN 33 134 022 870 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 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.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
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 2024, 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 material accounting policy information, the consolidated entity
disclosure statement 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 2024 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.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
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
carrying value of capitalised exploration and
evaluation expenditure represents a significant asset
of the Group.
Refer to Note 9 of the Financial Report for a
description of the accounting policy and significant
judgements applied to capitalised exploration and
evaluation expenditure.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (AASB 6), the
recoverability of exploration and evaluation
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.
Our procedures included, but were not limited to:
•
Obtaining a schedule of the areas of interest held
by the Group and assessing whether the rights to
tenure of those areas of interest remained current
at balance date;
•
Considering the status of the ongoing exploration
programmes in the respective areas of interest by
holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
announcements and directors’ minutes;
•
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 2024, 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:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and for such internal control as the directors determine is necessary to
enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of 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 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 39 to 46 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Alchemy Resources Limited, for the year ended
30 June 2024, 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 Pty Ltd
Neil Smith
Director
Perth, 30 September 2024
ANNUAL REPORT 30 JUNE 2024
Page 81 of 84
ADDITIONAL SHAREHOLDER INFORMATION AS AT 16 SEPTEMBER 2024
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
141
0.00
1,001 to 5,000
146
0.04
5,001 to 10,000
118
0.08
10,001 to 100,000
1,021
4.05
100,001 and over
854
95.83
Total
2,280
100.00
The number of holders of less than a marketable parcel of ordinary fully paid shares is 1,281 (2.97% 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
Shares held
Percentage of issued capital (%)
Northern Star Resources Limited
78,125,000
6.63%
Mr Neil Kenneth Watson
79,345,819
6.74%
Mr Lindsay George Dudfield
60,880,611
5.17%
Voting Rights
a) Ordinary shares
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.
ADDITIONAL SHAREHOLDERS INFORMATION
ANNUAL REPORT 30 JUNE 2024
Page 82 of 84
Unquoted Equity Securities
Number on
issue
Number of
holders
Options exercisable at $0.025 on or before 8 November 2024
1,000,000
1
Options exercisable at $0.035 on or before 8 November 2024
1,000,000
1
Options exercisable at $0.034 on or before 22 June 2025
3,300,000
6
Options exercisable at $0.05 on or before 17 October 20251
10,000,000
2
Options exercisable at $0.0405 on or before 23 December 2025
6,000,000
3
Options exercisable at $0.025 on or before 31 December 2026
9,000,000
5
Options exercisable at $0.04 on or before 31 December 2026
5,000,000
1
Options exercisable at $0.06 on or before 31 December 2026
6,000,000
1
1. 50% held by each of CG Nominees (Australia) Pty Ltd and H2 Investment Services Pty Ltd
Twenty Largest Holders of Quoted Ordinary Shares
Shareholder / Group name
Number of
shares
Percentage
held (%)
Northern Star Resources Limited
78,125,000
6.63%
Mr Neil Kenneth Watson and associated entities
74,677,819
6.34%
Mr Lindsay George Dudfield and associated entities
60,880,611
5.17%
Moryton Pty Ltd
52,800,000
4.48%
Equity Trustees Limited
45,818,182
3.89%
Mr Simon Saliba
25,000,000
2.12%
Alexander Angelopoulos and associated entities
17,802,159
1.51%
Troca Enterprises Pty Ltd
14,950,000
1.27%
BNP Paribas Nominees Pty Ltd
14,317,968
1.22%
Netwealth Investments Limited
13,565,742
1.15%
Citicorp Nominees Pty Limited
12,979,025
1.10%
Mr Christopher Paul Lewis
12,314,506
1.05%
Heron Resources Limited
12,000,000
1.02%
Mr Christopher Paul Lewis & Miss Ruby Iris Lewis
10,906,409
0.93%
Kingarth Pty Ltd
10,000,000
0.85%
Mr Lee Lindsay Burkett
8,700,000
0.74%
Mr James Michael Wilson
8,655,399
0.73%
BNP Paribas Noms Pty Ltd
8,071,700
0.69%
Ms Zhen Chen
7,451,110
0.63%
Mr Kevin John Davis
7,050,000
0.60%
Total
496,065,630
42.11%
ANNUAL REPORT 30 JUNE 2024
Page 83 of 84
TENEMENT SCHEDULE
Project/Tenement
State
Status
Interest
Co-holder
Notes
Bryah Basin Project
Western Australia
E52/1668
WA
Granted
10%
Jackson / Billabong / Sandfire
1, 2, 3
E52/1678
WA
Granted
10%
Jackson / Billabong / Sandfire
1, 2, 3
E52/1722
WA
Granted
10%
Jackson / Sandfire
1, 2
E52/1723-I
WA
Granted
20%
Billabong / Sandfire
2, 4, 5
E52/1730
WA
Granted
10%
Jackson / Billabong / Sandfire
1, 2, 3
E52/1731
WA
Granted
20%
Billabong / Sandfire
2, 4
E52/1810
WA
Granted
20%
Sandfire
2
E52/1852
WA
Granted
20%
Billabong
4
E52/2362
WA
Granted
20%
Billabong / Sandfire
2, 4, 6
E52/3292-I
WA
Granted
20%
Sandfire
2
E52/3358
WA
Granted
20%
Sandfire
2
E52/3359
WA
Granted
20%
Sandfire
2
E52/3405
WA
Granted
20%
Billabong / Sandfire
2, 4
E52/3406
WA
Granted
20%
Billabong / Sandfire
2, 4
E52/3408
WA
Granted
20%
Billabong / Sandfire
2, 4
E52/4086
WA
Application
20%
Sandfire
2
E52/4087
WA
Application
20%
Sandfire
2
E52/4088
WA
Application
20%
Sandfire
2
E52/4089
WA
Application
20%
Sandfire
2
E52/4090
WA
Application
20%
Sandfire
2
E52/3472
WA
Granted
20%
Sandfire
2
E52/3475
WA
Granted
20%
Sandfire
2
M52/722
WA
Granted
20%
Billabong / Sandfire
2, 4, 6
M52/723
WA
Granted
20%
Billabong / Sandfire
2, 4, 6
M52/737
WA
Granted
20%
Billabong
4, 6
M52/795
WA
Granted
20%
Billabong / Sandfire
2, 4, 6
M52/844-I
WA
Granted
20%
Sandfire
2, 6
M52/1049
WA
Granted
20%
Billabong
4, 6
P52/1617
WA
Granted
20%
Sandfire
2
P52/1618
WA
Granted
20%
Sandfire
2
P52/1619
WA
Granted
20%
Sandfire
2
P52/1645
WA
Granted
20%
Sandfire
2
P52/1646
WA
Granted
20%
Sandfire
2
P52/1647
WA
Granted
20%
Sandfire
2
P52/1531
WA
Granted
20%
Sandfire
2
P52/1532
WA
Granted
20%
Sandfire
2
P52/1533
WA
Granted
20%
Sandfire
2
P52/1534
WA
Granted
20%
Sandfire
2
P52/1535
WA
Granted
20%
Sandfire
2
P52/1538
WA
Granted
10%
Jackson / Billabong
1, 4
P52/1539
WA
Granted
10%
Jackson / Billabong
1, 4
P52/1540
WA
Granted
20%
Sandfire
2
P52/1541
WA
Granted
20%
Sandfire
2
P52/1565
WA
Granted
20%
Sandfire
2
P52/1566
WA
Granted
20%
Sandfire
2
P52/1567
WA
Granted
20%
Sandfire
2
P52/1568
WA
Granted
20%
Sandfire
2
P52/1572
WA
Granted
20%
Sandfire
2, 6
TENEMENT SCHEDULE
ANNUAL REPORT 30 JUNE 2024
Page 84 of 84
Project/Tenement
State
Status
Interest
Co-holder
Notes
Karonie Project
Western Australia
E28/2575
WA
WA
100%
7
E28/2576-I
WA
WA
100%
7
E28/2601
WA
WA
100%
7
E28/2619
WA
WA
100%
7
E 28/2643
WA
WA
100%
7
E28/2657
WA
WA
100%
7
E28/2667
WA
WA
100%
7
E28/2668
WA
WA
100%
7
E28/2681
WA
WA
100%
7
E28/2752
WA
WA
100%
7
E28/2880
WA
WA
100%
7
E28/2940
WA
WA
100%
7
E28/2976
WA
WA
100%
7
E28/3098
WA
WA
100%
7
E28/3207
WA
WA
100%
7
E28/3335
WA
Application – Ballot
7
Lake Rebecca Project
Western Australia
E28/3006
WA
Granted
100%
7
E28/3008
WA
Granted
100%
7
E28/3035
WA
Granted
100%
7
E28/3039
WA
Granted
100%
7
E28/3048
WA
Granted
100%
7
E28/3053
WA
Granted
100%
7
E28/3058
WA
Granted
100%
7
E28/3059
WA
Granted
100%
7
E28/3063
WA
Granted
100%
7
E28/3064
WA
Granted
100%
7
E28/3006
WA
Granted
100%
7
E28/3008
WA
Granted
100%
7
Lachlan Projects
New South Wales
EL5878 - Overflow
NSW
Granted
80%
Develop Global Limited
8
EL7941 - Overflow
NSW
Granted
80%
Develop Global Limited
8
EL8267 - Overflow Nth
NSW
Granted
80%
Develop Global Limited
8
EL8356 - Yellow Mtn
NSW
Granted
80%
Develop Global Limited
8
EL8192 - Eurow
NSW
Granted
80%
Develop Global Limited
8
EL8318 - Girilambone
NSW
Granted
80%
Develop Global Limited
8
EL8631 - West Lynn
NSW
Granted
80%
Develop Global Limited
8
EL8711 - Woodsreef
NSW
Granted
80%
Develop Global Limited
8
Notes:
1.
Jackson Minerals Pty Ltd, a subsidiary of Fe Ltd (ASX: FEL), retains a 20% interest free-carried to a decision to mine.
2. Sandfire Resources Ltd (ASX: SFR) notified its intention to assign its 80% interest in the Bryah Joint Venture in Western Australia to
Alchemy. See ALY ASX Announcement 29 January 2024 – ‘Alchemy to re-acquire Sandfires Bryah Joint Venture Interests’.
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%.