ALDORO RESOURCES LIMITED
ABN 31 622 990 809
ANNUAL REPORT
YEAR ENDED 30 JUNE 2023
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Contents
Corporate Directory
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report
Corporate Governance Statement
ASX Additional Information
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Corporate Directory
Board of Directors
Non-Executive Director
Lincoln Ho
Non-Executive Director
Troy Flannery
Mark Mitchell
Technical Director
Caigen Wang Non-Executive Director (Appointed 14 July 2023)
Company Secretary
Ms Sarah Smith
Registered Office
Suite 11, 12 Level 2
23 Railway Road
Subiaco WA 6008
Telephone: 08 6559 1792
Website: www.aldororesources.com
Stock Exchange Listing
Listed on the Australian Securities Exchange (ASX Code: ARN)
Auditors
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
Perth WA 6000
Solicitors
Steinepreis Paganin
16 Milligan Street
Perth WA 6000
Bankers
Westpac Banking Corporation
Level 4, Brookfield Place, Tower Two
123 St Georges Terrace
Perth WA 6000
Share Registry
Automic Share Registry
Level 5, 191 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
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Directors’ Report
Saracen Minerals Holdings Limited
Directors Report
The Directors of Aldoro Resources Limited (“Aldoro” or “the Company”) present their report, together with the financial
statements of the Group consisting of Aldoro Resources Limited and its controlled entities for the financial year ended
30 June 2023.
DIRECTORS
The names and particulars of the Company’s directors in office during the financial year and at the date of this report
are as follows. Directors held office for this entire period unless otherwise stated.
Mr Troy Flannery | Non-Executive Director
(Appointed 26 November 2020)
Mr Flannery has more than 24 years’ experience in the mining industry, including 8 years in corporate and 17 years in
senior mining engineering & project development roles. He has a degree in Mining Engineering, Masters in Finance &
First Class Mine Managers Certificate of Competency. Troy is also the CEO of Abra Mining Pty Ltd, the corporate vehicle
for the Galena Mining Ltd (ASX:G1A) & Toho Zinc Joint Venture. He has worked at numerous mining companies, mining
consultancies & contractors including BHP, Newcrest, Xstrata, St Barbara Mines & AMC Consultants.
During the year, Mr Flannery held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Aurum Resources Limited (current);
• Non-Executive Chairman of Red Mountain Resources Limited (current)
Mr Lincoln Ho | Non-Executive Director
(Appointed 26 November 2020)
Lincoln has over a decade’s experience in equities trading, with a strong focus on due diligence investigations, mergers
& acquisitions and corporate restructuring in the emerging companies sector. He also has specific investor relations
experience in both Australia and Asia, having liaised with significant high net-worth investors based in Hong Kong,
Singapore and China.
During the past three years, Mr Ho held the following directorships in other ASX listed companies:
• Non-Executive Director of Red Mountain Mining Limited (current);
• Non-Executive Director of Redcastle Resources Limited (current)
Mr Mark Mitchell | Technical Director
(Appointed 11 March 2022)
Mark has been a geologist for over 35 years in exploration in diamonds, rare metals, lithium and base metals in Australia
and international jurisdictions. Mark worked for De Beers Australia exploration for 24 years rising to the position of
exploration manager until its closure in 2009. He then became exploration manager for Kinloch Resources with a
portfolio of rare earth, lithium, gold, nickel and copper projects in Australia and Southern Africa. Mark has significant
experience ranging from targeting through to resource evaluation and has been successful in the discovery of several
ore deposits in Australia. He has acted in the capacity of company liaison representative on various research projects
with AMIRA, CET, GRC as well as a brief period on the CME Exploration committee. He has geological membership with
the Geological Society of Australia and Australian Institute of Geoscientists and is a Registered Professional Geoscientist.
Mr Caigen Wang | Non-Executive Director
(Appointed 14 July 2023)
Dr Wang has a successful track record in generating returns for shareholders and “discovery-to-mine” execution as
evidenced by the founding of Tietto in 2010 following a long career as a mining engineer, mining academic and mine
manager in Australia, Canada and China. Earlier in his career, Dr Wang spent 7 years as a lecturer and associate professor
at the China University of Mining and Technology and 6 years in Western Australian School of Mines and University of
Alberta as research fellow/associate. During his time as founder at Tietto, Dr Wang led the Company’s ASX listing as an
explorer at a valuation of circa $30 million to its current market capitalisation of circa $600 million reflecting it being
Africa’s newest gold producer with gold production forecast of over 200,000 oz per annum at its Abujar Gold Mine in
Côte D’Ivoire. In addition, Dr Wang was previously CEO of Ishine Resources, an ASX-listed explorer with multiple
Australian exploration projects. He also held senior positions as a mining engineer for St Barbara, BHP, Hunan
Westralian and Sons of Gwalia. Dr Wang holds a Bachelor, Master and PhD in Mining Engineering and is a fellow of
AusIMM.
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Directors’ Report
During the past three years, Mr Ho held the following directorships in other ASX listed companies:
• Managing Director of Tietto Minerals Limited (resigned May 2023)
COMPANY SECRETARY
Ms Sarah Smith | Company Secretary
Ms Smith is a Chartered Accountant and has acted as the Company Secretary of a number of ASX listed companies.
Sarah has over 9 years’ experience in the provision of company secretarial and financial management services for ASX
listed companies, capital raisings and IPOs, due diligence reviews and ASX and ASIC compliance.
INTERESTS IN SHARES AND OPTIONS OF THE COMPANY
The following table sets out each current Director’s relevant interest in shares and options of the Company as at the
date of this report.
Director
Mr Lincoln Ho
Mr Troy Flannery
Mr Mark Mitchell
Mr Caigen Wang
Total
Ordinary Shares
Unlisted Options
Listed Options
387,000 (i)
450,000 (ii)
-
-
837,000
575,000 (iii)
2,075,000 (iv)
2,000,000 (v)
-
4,650,000
1,025,000
1,050,000
-
-
2,075,000
(i) Participation in the April 2022 and October 2022 Placements, Mr Ho was issued with 50,000 shares for each
Placement upon shareholders' approval.
On 18 July 2023, Mr Ho was issued with 100,000 fully paid ordinary shares under the April 2023 Placement as
approved by shareholders at the General Meeting held 17 July 2023.
(ii) Participation in the April 2022 and October 2022 Placements, Mr Flannery increased his holdings by 100,000
and 50,000 for each Placement upon shareholders' approval.
On 18 July 2023, Mr Flannery was issued with 100,000 fully paid ordinary shares under the April 2023 Placement
as approved by shareholders at the General Meeting held 17 July 2023.
(iii) Participation in the April 2022 Placement, Mr Ho was issued with 25,000 listed options free attaching to the
Placement shares issued on a 1:2 basis, exercisable at $0.30 per Option on or before 31 August 2023 (ARNO);
Participation in the October 2022 Placement, Mr Ho was issued with 25,000 unlisted options free attaching to
the Placement shares issued on a 1:2 basis, exercisable at $0.30 per Option on or before 09 September 2024.
On 18 July 2023, Mr Ho was issued with 50,000 free attaching options under the April 2023 Placement as
approved by shareholders at the General Meeting held 17 July 2023. The Placement options were exercisable
at $0.25 per Option on or before 9 September 2026. Another 500,000 unlisted options exercisable at $0.25 per
Option on or before 9 September 2026 were issued as the Director incentive options approved by shareholders
at the General Meeting.
(iv) Participation in the April 2022 Placement, Mr Flannery was issued with 50,000 listed options free attaching to
the Placement shares issued on a 1:2 basis, exercisable at $0.30 per Option on or before 31 August 2023
(ARNO); Participation in the October 2022 Placement, Mr Flannery was issued with 25,000 unlisted options
free attaching to the Placement shares issued on a 1:2 basis, exercisable at $0.30 per Option on or before 09
September 2024.
On 18 July 2023, Mr Flannery was issued with 50,000 free attaching options under the April 2023 Placement
as approved by shareholders at the General Meeting held 17 July 2023, exercisable at $0.25 per Option on or
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Directors’ Report
before 9 September 2026. Meanwhile, Mr Flannery was issued with 2,000,000 unlisted Options exercisable at
$0.25 per Option on or before 9 September 2026 as the Director incentive options approved by shareholders
at the General Meeting.
(v) On 18 July 2023, the Group issued 2,000,000 unlisted Options, exercisable at $0.25 per Option on or before 9
September 2026, to Mr Mitchell as the Director incentive options approved by shareholders at the General
Meeting held on 17 July 2023.
PRINCIPAL ACTIVITIES
Aldoro Resources Limited is a mineral exploration and development company. Aldoro has a collection of gold and nickel
focused advanced exploration projects all located in Western Australia.
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REVIEW AND RESULTS OF OPERATIONS
Overview
Aldoro Resources Limited is an ASX-listed (ASX:ARN) mineral exploration and development company and has three
Australian project areas, Narndee (Ni-Cu-PGE), Niobe (Rb-Li) and Wyemandoo (Rb-Li-W, and Ni-Cu-PGE-Au) and
one Namibian project, Kameelburg (REE-Nb). During the audit period exploration continued over the Narndee Ni-
PGE IP targets with two diamond drilling programmes, at the Namibian Kameelburg REE and Nb Project two site
visits were made security a local entity and formalising a JV agreement, at Wyemandoo IP conducted and rock chip
sampling and at Niobe Flora and Fauna studies were conducted and a Mining Lease application lodged.
Narndee Project
Two diamond drilling programmes were conducted targeting IP anomalies from the recent IP surveying (ARN
10th March 2023) targeting the chargeability highs. A total of 12 diamond holes were drilled NDD0023-34 for
4,718.6m and all focused-on IP targets, see Figure 1.
Figure 1: The 4 diamond holes NDD0030-0033 drilled in the quarter in relation to the holes from the
previous Aldoro drilling programmes with mineralised holes labelled. Note the extent of the Eastern
anomaly with the four holes that intersected mineralisation.
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Table 1: Diamond Drill Collars Phase 1 2023
Datum GDA94 zone 50
This phase of Diamond drilling highlighted the Eastern Anomaly which produced:
• NDD0025: 4m@ 0.69g/t (3E) and 0.54% Ni, 0.15%Cu from 247m
• NDD0025: 1m@ 1.15g/t (3E) and 0.26% Ni from 269m
• NDD0028, 10m@0.67g/t (3E), 0.59%Ni, 0.17%Cu and 0.02%Co from 219m
• NDD0028, 2m@ 0.27g/t (3E), 0.41% Ni, 0.19%Cu and 0.02%Co from 319m
• NDD0029, 2m@ 0.56g/t (3E), 0.46%Ni, 0.11%Cu and 0.02%Co from 288m
• NDD0029, 9m@ 0.96g/t (3E), 0.57%Ni, 0.17%Cu and 0.02%Co from 296m
(3E = Pd+Pt+Au in g/t)
At hole NDD0023 magnetite was intersected which may be associated with oxidation on the northern continuation of
the high chargeability anomaly
The Eastern anomaly line was drilled at 5800mN via hole NDD0025 and the cross section along this line shows the
chargeability profile with the disseminated sulphides coinciding with the chargeability feature with depth extent and
appears adjacent to a steeply dipping fault controlled lithological contact (Figure 2).
Figure 2: Cross section through the 5800mN East-West line showing the drill trace through chargeability feature and
the stark vertical contrast.
NDD0026 lies 100m to the north of NDD0025 and tested part of the northern strike extent of the feature, which was
considered to have shallower sulphides. This North-South feature appears to continue northward and is visible in the
recently completed IP Gradient Array data as shown in Figure 5.
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Hole_IDEastingNorthingDatumElevation (m)DipAzmDepth (m)IP Line NDD00236100986805400GDA94_z50465-70270571.25400NDD00246096486805398GDA94_z50461-70270546.95400NDD00256109506805798GDA94_z50465-7590379.05800NDD00266109466805902GDA94_z50466-7090354.15900NDD00276104186806702GDA94_z50475-7090400.16700NDD00286110396806403GDA94_z50467-7590346.86400NDD00296110416806502GDA94_z50468-5590351.165002949.2
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Figure 3: Gradient Array Chargeability data showing the extension of the Eastern Anomaly which has a strike extent of
up to 900m and the Central Target area (Target 3) with an intense chargeability signature. Current hole is into the
Central Anomaly NDD0027 with planned holes labelled as “P”.
NDD0027 lies on the 6700mN line (Figure 5) and targets the north-south elongate chargeability target with a coincident
resistivity low. The hole is currently at approximately 80m depth in a fractured altered anorthosite.
The analytical results from NDD0027 into the strong central anomaly were not sufficiently mineralised with Ni averaging
0.31% over 52m from 348m. Upon review it was considered that mineralisation may lie deeper than the drilled depth.
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NDD0027
Figure 4: Hole NDD0027 Cross section through the 6700 line with the East-West line showing the drill trace through
chargeability anomaly
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NDD0028
Figure 5: Hole NDD0028 Cross section through the 6400mN East-West line showing the drill trace through chargeability
anomaly.
In hole NDD0029 chalcopyrite was noted from 284.9-317m, with the 285-319m interval.
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NDD002
9
Figure 6: Hole NDD0029 Cross section through the 6500mN East-West line showing the drill trace through chargeability
anomaly.
The second phase of diamond drilling targeted two IP anomalies the Northern and Western Targets as well as the Trough
target which was analogous to the VC01 mineralisation setting and a possible faulted extension of the mineralisation.
However, follow-up drilling to the first Trough hole NDD0031 t
Table 2: Diamond Drill Collars Phase 2 2023
Drill Hole NDD0030: Hole targets a large chargeability high with a discrete moderate resistivity signal located on a steep
gradient of a magnetic high which may reflect a sulphide rich lithological contact zone
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Hole_IDTargetEastingNorthingElevation(m)DatumAzimuthDipEOH (m)StatusNDD0030Northern Target6106006808200497.5MGA_509070498.3CompletedNDD0031Trough6098406805100426.9MGA_5027075426.9CompletedNDD0032West Target6097406806100462MGA_509075576.3CompletedNDD0033Trough6098906805100426.9MGA_5027075127AbandonedNDD0034Trough6098956805100426.9MGA_5027075141Abandoned1769.5Total
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Figure 7: drill trace through NDD030 targeting the chargeability high.
Drill Hole NDD0031: Hole targets an IP feature with a similar signature to that found at VC01 (NDD0014, 4.26m of 1.22%
Ni, 0.53% Cu and 0.08%Co from 277.14m ref ASX:ARN 8 March 2022). The VC01 chargeability signal appears to be offset
to the west due to an east-west fault with sinistral movement. Hole NDD0031 targets the offset chargeability anomaly
in a similar setting to the massive sulphides intersected in NDD0014.
NDD003
1
Figure 8: Drill hole trace targeting the interpreted east dipping contact beside the chargeability high, an interpreted
fault zone.
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Figure 9: Drill trace through VC01 with the most successful hole NDD0014 for comparison with hole NDD0031 above.
Drill Hole NDD0032: Hole targets a discrete chargeability anomaly that appears to reside on a contact boundary of gently
dipping westerly ultramafic/mafics in a low resistivity zone. It is possibly the same contact zone intersected in the
eastern anomaly which can been seen to the right in the 6100 line below.
Figure 10: Drill trace through moderately deep discrete chargeability zone.
A planned drill hole just west of the eastern anomaly was downgraded for a diamond hole and may, due to its
shallow depth, be drilled at a later date. The planned hole targets a discrete moderate chargeability target, a
possible ultramafic/mafic contact zone that shallowly dips to the east and appears to coincide with a break in the
high resistivity signal which may be fault related.
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Figure 11: The shallow hole planned for line 6800 into the easterly dipping chargeability anomaly possibly
associated with a dipping lithological contact.
Wyemandoo Project
The IP Gradient Array survey at Wyemandoo Project (Windimurra Igneous Complex) was completed with preliminary
data is shown in Figure 5. The Ni-Cu target is based on magnetic features offset from the major NNE-SSW magnetic linear
associated with Huntsman’s Canegrass Ni-Cu anomalies. Preliminary interpretation indicates a strong anomaly in the
northwest and a formational anomaly striking NNE through the central portion of the survey area. These anomalies will
be surface rock chipped sampled for geochemical analysis.
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Figure 12: IP gradient array Chargeability image with mapped faults. The image shows a strong anomaly in the
northwest and a formational anomaly striking NNE through the central portion of the survey area. The cut-out area is
due to a cattle watering point. (Datum GDA94_z50).
Niobe Project
Aldoro are continuing to progress the transition of its Niobe Rubidium-Lithium resource tenement from Prospecting
Licence to granted Mining Licence. The Niobe Project is 100% owned and is located 80km by road northwest of
Mount Magnet, Western Australia.
The Niobe Rubidium-Lithium Project consists of a cluster of pegmatite dykes that stretch across the 1.4km width of
the prospecting licence P59/2137 and 6 named pegmatitic bodies have been identified with four consisting of
multiple stacked dykes. An inferred Mineral Resource estimate of 4.615Mt @ 0.17% Rb2O and 0.07% Li2O has been
declared (JORC 2012 Code) and using a cut-off grade of 0.05% Rb2O, ASX: 12/10/2022.
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The Mineral Resource Inferred estimate within the guidelines of the JORC 2012 Code and used a cut-off grade of
0.05% Rb2O to produce:
4.615Mt @ 0.17% Rb2O and 0.07% Li2O (Inferred Resource Estimate)
Table 3: Niobe Inferred Mineral Resource Estimate
Notes
Reported above a Rb2O cut-off grade of 0.05%
Tonnages and grades have been rounded to reflect the relative uncertainty of the estimate
The Mineral Resource estimate has been classified as Inferred on the basis of confidence in the geological and grade
continuity and consideration of the sampling and assay quality, sampling density and confidence in the estimation
of the Rb2O and Li2O grade.
Figure 13: Plan view of the mineralisation domains and wire frames. Note the image shows all the historical holes
where drilling has lithological control but not all historical holes were analysed for rubidium and lithium.
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TypeTonnageRb2OLi2ORb2OLi2Ot%%ttOxide111,0000.150.0717070Transitional974,0000.170.051,670530Fresh3,530,0000.180.076,2202,480Total4,615,0000.170.078,0603,080Total High Level Estimate
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Figure 14: Cross section view of Niobe’s mineralised section A-A’ (see Figure 4) through the northern dipping
pegmatites, Niobe Main with Rb2O assays.
Figure 15: East-West cross section B-B’ through the breakaway pegmatites which dip to the east showing Rb2O
assays.
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Aldoro is pushing ahead with its development of the Niobe Project announcing:
•
•
•
•
•
The outcome of the Niobe environmental survey where Newland Environmental Consultants were
engaged to undertake the Flora and Vegetation survey across the Niobe tenement. The survey
confirmed that “No vegetation types or landforms in the survey area were considered as being rare,
unique or restricted, or representing the DBCA descriptions of Midwest Threatened Ecological
Communities or Priority Ecological Communities. No riparian vegetation was observed in the survey
area”.
Lodged the Niobe Mineralisation Report and Supporting Statement to the Department of Mines
(DMIRS) in support of converting prospecting licence P59/2137 into a mining licence MLA59/775, by
utilising Niobe’s JORC Mineral Resource estimate.
Progressed the Niobe scoping study, including metallurgical test work for lithium and rubidium
recovery.
Conduced a Fauna survey over Niobe using consultants Terrestrial Ecosystems.
Conducted a second heritage survey to give 100% coverage over the licence area with representatives
from Wajarri Yamatji (Simpson Area) and Horizon Heritage Services. Two sites of cultural significance
were identified but were not in the areas of known mineralisation or near the planned infrastructure.
Kameelburg Project - Namibia
Aldoro conducted a productive site visit to Namibia as part of thorough due diligence exercise. The initiative
included meetings with numerous officials from the Ministry of Mines and Energy, vendor of the three acquired
project licenses (EPL 7372, 7373 & 7895), relevant property landowner and a recently engaged in-country
experienced geological consultant.
A site visit followed to meet the local property landowner on which the Kameelburg Rare Earth Carbonatite resides.
The landowner was highly receptive, hospitable and supportive of exploration by Aldoro. At the Kameelburg site,
the carbonatite was traversed and specific areas containing greater than 3% TREO contents in rock chip assays as
reported ARN 20th March 2023 were visited. This enabled the entire team to fully appreciate the significant size of
the carbonatite and its beforsite phases. An upcoming exploration strategy for Kameelburg has been subsequently
developed with the aim to investigate the economic potential of the giant carbonatite.
Figure 16: Geological Map of the Kameelburg Carbonatite derived from published data (after Prins, 1981) with
>1% TREO contour. Datum WGS84_33
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Historical Exploration
Historical exploration included rock chip and soil sampling, hyperspectral surveying and analytical studies.
•
The grid samples were contoured, which found the average of the soil samples in the area to be >1% TREO
(0.838km2) contour was 1.44%. Rock chip results recovered values up to up to 5.56% TREOs with the average
from within the >1% TREO (0.838km2) contour being 1.27% TREO.
Table 4: Kameelburg Sampling - TREO Results
TOTAL GRID
Number
Highest Value
%
Average %
CARBONATITE
Number
Highest Value
%
Average %
>1%
CONTOUR
Number
Highest Value
%
Average %
Soil
Rock
Chip
410
312
2.66
0.78
5.56
0.76
211
152
2.66
1.09
5.56
1
107
79
2.66
1.44
5.56
1.27
Area,
km2
3.04
1.606
0.838
Refer to the Company’s announcement dated 20 March 2023 for further detail with respect to the exploration
results reported above.
Forward Work Program
The forward work program, which Aldoro is currently funded to execute, for the project involves the following
steps:
Narndee
-
-
Conduct an RC drilling programme over two shallow Ni bearing areas, Area 32 and Four Corner Bore.
Further investigate the nature of the Ni mineralisation using XRD.
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Wyemandoo
-
-
-
Refine the target areas for Li-Rb mineralisation through additional sampling and geological mapping.
Conduct a passive seismic survey over the refined target areas to generate targets of size and mineralisation.
Sample the IP chargeability structural target for Ni-Cu-PGE-Au
Kameelburg
Conduct an airborne orthophotography survey and generate an accurate DEM.
-
- Use the survey data to refine areas suitable for metallurgical sampling.
- Undertake detailed geological mapping using the orthophotos with ground truthing.
-
Follow-up pXRF sampling along the beforsite dyke systems to understand the spread of REE and Nb
mineralisation and target these areas for drilling.
Niobe
-
Progress the grant of the mining lease application through Native Title royalty agreement and modifying the
boundary areas affected by section 19.
CORPORATE
Environmental, Social and Governance Framework Adopted
The Company announced that it has adopted an Environmental, Social and Governance (ESG) framework with 21 core
metrics and disclosures created by the World Economic Forum (WEF). The Board resolved to adopt the WEF ESG
framework and instructed management to set up an impact measurement plan for each sustainability area which
includes, but is not limited to, governance, anti-corruption practices, ethical behaviour, human rights, carbon emissions,
land use, ecological sensitivity, water consumption, diversity and inclusion, pay equality and tax payments.
To ensure that Aldoro can measure, monitor, and report on its ESG progress, the Company engaged impact monitoring
technology platform Socialsuite to streamline the outcomes measurement and facilitate ongoing ESG reporting process.
The Company’s goal is to demonstrate commitment and progress on its ESG scorecard, but more broadly, requires
progress on a range of ESG benchmarks as set out by the WEF’s ESG White Paper. Socialsuite’s ESG reporting technology
provides an easy way for investors and other stakeholders to assess the commitment and progress of the Company on
its journey to create “best in class” ESG credentials and outcomes.
Capital Raising
On 8 July 2022, the Company issued 223,728 ordinary shares to Dr Fu in lieu of his consulting services provided under
a service contract.
On 22 July 2022, 100,000 and 50,000 Placement Shares were issued to Directors, Troy Flannery and Lincoln Ho
respectively, together with 50,000 and 25,000 free-attaching options, exercisable at $0.30, expiring on 31 August 2023
for the Directors’ participation in the April 2022 Placement after shareholder approval was obtained on 19 July 2022.
On 25 July 2022, Aldoro issued 2,000,000 unlisted options exercisable at $0.30, expiring on 9 September 2024 to
Corporate Advisor, Xcel Capital, for their services provided during the April 2022 Placement after shareholder approval
was obtained on 19 July 2022.
On 24 October 2022, Aldoro successfully completed a capital raising of $2,475,000 (before costs) through the issue of
11,000,000 fully paid ordinary shares to investors at an issue price of $0.225 per share (“Placement”). Meanwhile,
5,500,000 free attaching unlisted options, expiring 9 September 2024, at $0.30 were issued on a 1:2 basis. The
proceeds of the Placement are used to fund the phase 3 drilling programme at the Niobe Rb-Li Project, progress
feasibility studies and fund the geophysical surveys at the Narndee Ni-Cu-PGE Project, in addition to augmenting
working capital. Xcel Capital Pty Ltd (“Xcel Capital”) acted as lead manager to the Placement and was paid a fee of 6%
+ GST and the management fee of $40,000. On 30 November, Xcel Capital was also issued 2,000,000 unlisted broker
options with exercise price $0.30 and expiring on 9 September 2024.
On 11 November 2022, the Company issued 1,000,000 shares at $0.225 per share to raise up $225,000 upon the exercise
of options expiring 18 November 2022.
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On 16 November 2022, the Company issued 900,000 ordinary shares at $0.225 per share to raise up $202,500 upon the
exercise of options expiring 18 November 2022.
On 1 December 2022, 100,000 ordinary shares were issued to directors for their participation in the October
placement after shareholders’ approval on the annual general meeting held on 22 November 2022.
On 18 April 2023, the Company conducted a placement of 21,511,426 ordinary fully paid shares (“Placement Shares”)
priced at $0.175 to raise $3,764,500 before costs (“Placement”). The proceeds of the Placement are used to continue
exploration activities at the Niobe Rb-Li Project, Wyemandoo Project and Narndee Ni-Cu-PGE Project, and for working
capital. Director participation in the Placement (200,000 shares) as well as 10,857,143 free attaching placement options
are subject to shareholder approval. Xcel Capital Pty Ltd (“Xcel Capital”) acted as lead manager to the Placement and
was paid a fee of 6% and the management fee of $40,000+ GST. Xcel Capital will receive 3,500,000 unlisted broker
options with exercise price $0.25 and expiring on 9 September 2026, subject to shareholder approval.
Tenement Acquisitions
On 7 December 2022, the Company issued the 325,000 ordinary shares valued at $125,125 pursuant to the binding
tenement sale agreement (Agreement) signed in August 2021 with Mining Equities Pty Ltd for the acquisition of Mining
Equities’ 100% interest in E58/571. The shares were issued upon the grant of the tenement application and the transfer
from Mining Equities to Aldoro is completed.
As announced on 20 March 2023, the Company entered into a binding Heads of Agreement (“HoA”) with Logan
Exploration and Investments CC and Okonde Mining and Exploration CC (together, the Vendors) to acquire an 85%
interest in mineral permit EPL 7373, EPL 7372 and EPL 7895, which together make up the Kameelburg Project (the
“Project”) in Namibia (“Transaction”). The terms for the Transaction as follows:
• An initial payment of $N500,000 (AUD $41,300) upon signing the agreement;
• A payment of $N2,500,000 (AUD $201,000) at Completion; and
• 500,000 fully paid ordinary shares in the capital of Aldoro;
Conditions Precedent include:
(i)
(ii)
(iii)
(iv)
completion of due diligence by Aldoro on the Project and the Permits to the satisfaction of Aldoro and
confirmed in writing;
the successful renewal of EPL 7373, which is currently undergoing renewal;
the Parties obtaining any necessary shareholder, regulatory, governmental, or third-party consents
and/or approvals (as applicable) in order to allow the Parties to complete their respective obligations
under this Agreement; and
the Permits remaining in good standing as at the date of satisfaction of the last Condition.
The Company confirms that the initial payment of $N500,000 (AUD $41,300) has been made. The Board has
conducted additional due diligence on a site visit to Namibia on the 1st May 2023, and the Company confirmed
Namibia as a favorable, mining friendly jurisdiction with established mining regulations and long history of mining as
announced on 18 May 2023.
Financial Performance
The financial results of the Group for the year ended 30 June 2023 and period ended 30 June 2022 are:
Cash and cash equivalents
Net Assets
Other Income
Net loss after tax
30-June-23
$
2,898,037
12,740,487
222,642
(4,564,479)
30-June-22
$
1,880,412
10,850,053
40,762
(2,274,796)
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Business risk
The Group makes every effort to identify materials risks and to manage these effectively. This section does not attempt
to provide an exhaustive list of risks faced by the Group or by investors in the Group, nor are they in order of
significance. Actual events may be different to those described.
The Board aims to manage 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.
a)
Tenure and access risk
Applications
While the Company does not anticipate there to be any issues with the grant of its Tenement application, 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.
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 Project overlaps private land, exploration and mining activity on the Project may require authorisation or
consent from the owners of that land. The Company is not required to enter into land access agreements to undertake
its proposed exploration program on the Tenements. However, the Company intends to 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.
b) Exploration Risk
Potential investors should understand that mineral exploration and development are high-risk undertakings. There
can be no assurance that exploration of the Project, 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
programmes 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.
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Business risk (continued)
c)
Climate Change
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.
d) Reliance on Key Personnel
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.
e)
Environmental
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.
f) Native title
The Native Title Act 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 is not required to enter into land access agreements to undertake its proposed exploration program on
the Tenements. However, the Company intends to 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.
g)
Economic
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.
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Directors’ Report
Business risk (continued)
h) Additional requirements for capital
The Company’s capital requirements depend on numerous factors. The Company may require further financing in
addition to amounts raised under the Offer. Any additional equity financing will dilute shareholdings, and debt
financing, if available, may involve 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.
DIVIDENDS
No dividend is recommended in respect of the current financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Refer to the Principal Activities and Review of Operations on page 7.
MATTERS SUBSEQUENT TO THE REPORTING YEAR
On 14 July 2023, Tietto Minerals Ltd founder and former Managing Director Dr Caigen Wang joins the Aldoro Resources
board as a non-executive director.
On 18 July 2023, Aldoro issued 200,000 ordinary shares for director participation in April 2023 placement as approved
by shareholder on 17 July 2023. Meanwhile, the Company issued 10,855,714 free attaching unlisted options to the April
2023 Placement shares (on a 1:2 basis) approved by shareholders at the General Meeting. The options are exercisable
at $0.25 on or before 9 September 2026. In addition, the Company issued 4,500,000 unlisted incentive options to
directors as approved by shareholders at the General Meeting, and the incentive options have the same terms as other
free attaching options issued the same day.
On 7 August 2023, the Company executed a Joint Venture Agreement with Logan Exploration Investments CC and
Okonde Mining and Exploration CC respectively for the Kameelburg Rare Earths Project which includes licenses EPL7372,
7373 and 7895 in Namibia.
Other than stated above, there has been no other matter or circumstance that has arisen since the end of the financial
year that has significantly affected, or may significantly affect, the operations of the Group, the results of those
operations, or the state of affairs of the Group.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Company’s strategic focus will continue to be on developing value from exploration across its tenement projects in
Western Australia; in particular the Li-Ta-Rb projects at Niobe and Windimurra. The Company will continue to explore
its projects with extensive drilling which is underway.
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Directors’ Report
DIRECTORS’ MEETINGS
The number of Directors’ meetings held during the financial year and the number of meetings attended by each Director
during the time the Director held office are:
Director
Mr Troy Flannery
Mr Lincoln Ho
Mr Mark Mitchell
Mr Caigen Wang
Number Eligible
to Attend
2
2
2
-
Number
Attended
2
2
2
-
In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or other electronic
means, and where necessary, circular resolutions are executed to effect decisions.
Due to the size and scale of the Group, there is no Remuneration and Nomination Committee or Audit Committee at
present. Matters typically dealt with by these Committees are, for the time being, managed by the Board. For details of
the function of the Board, refer to the Corporate Governance Statement.
Remuneration Report (AUDITED)
This remuneration report for the year ended 30 June 2023 outlines the remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 (“the Act”) and its regulations. This information has
been audited as required by section 308(3C) of the Act.
The Remuneration Report details the remuneration arrangements for Key Management Personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Parent company.
a) Key Management Personnel Disclosed in this Report
Key Management Personnel of the Group during or since the end of the financial year were:
Troy Flannery
Mark Mitchell
Lincoln Ho
Non-Executive Director
Technical Director
Non-Executive Director
There have been no other changes after reporting date and up to the date that the financial report was authorised for
issue.
The Remuneration Report is set out under the following main headings:
A
B
C
D
E
F
G
H
I
J
K
Remuneration Philosophy
Remuneration Governance, Structure and Approvals
Remuneration and Performance
Details of Remuneration
Contractual Arrangements
Share-based Compensation
Equity Instruments Issued on Exercise of Remuneration Options
Voting and comments made at the Company’s 2020 Annual General Meeting
Loans with KMP
Other Transactions with KMP
Additional Information
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A
Remuneration Philosophy
KMP have authority and responsibility for planning, directing and controlling the activities of the Group. KMP of the
Group comprise of the Board of Directors, and at present there are no other persons employed by the Group in an
executive capacity.
The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the person’s duties and
responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest
quality.
No remuneration consultants were employed during the financial year.
B
Remuneration Governance, Structure and Approvals
Remuneration of Directors is currently set by the Board of Directors. The Board has not established a separate
Remuneration Committee at this point in the Group’s development, nor has the Board engaged the services of an
external remuneration consultant. It is considered that the size of the Board along with the level of activity of the Group
renders this impractical. The Board is primarily responsible for:
The over-arching executive remuneration framework;
•
• Operation of the incentive plans which apply to executive directors and senior executives, including key
performance indicators and performance hurdles;
• Remuneration levels of executives; and
• Non-Executive Director fees.
Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-
term interests of the Group.
❖ Non-Executive Remuneration Structure
The remuneration of Non-Executive Directors consists of Directors’ fees. The total aggregate fixed sum per annum to
be paid to Non-Executive Directors in accordance with the Group’s Constitution shall be no more than A$300,000 and
may be varied by ordinary resolution of the Shareholders in a General Meeting.
Remuneration of Non-Executive Directors is based on fees approved by the Board of Directors and is set at levels to
reflect market conditions and encourage the continued services of the Directors. The chair’s fees are determined
independently to the fees of the Non-Executive Director’s based on comparative roles in the external market. In
accordance with the Group’s Constitution, the Directors may at any time, subject to the Listing Rules, adopt any scheme
or plan which they consider to be in the interests of the Group and which is designed to provide superannuation benefits
for both present and future Non-Executive Directors, and they may from time to time vary this scheme or plan. The
remuneration of Non-Executives is detailed in Table 1 and their contractual arrangements are disclosed in “Section E –
Contractual Arrangements”.
Remuneration may also include an invitation to participate in share-based incentive programmes in accordance with
Group policy.
The nature and amount of remuneration is collectively considered by the Board of Directors with reference to relevant
employment conditions and fees commensurate to a company of similar size and level of activity, with the overall
objective of ensuring maximum stakeholder benefit from the retention of high performing Directors.
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❖ Executive Remuneration Structure
The nature and amount of remuneration of executives are assessed on a periodic basis with the overall objective of
ensuring maximum stakeholder benefit from the retention of high performance Directors.
The main objectives sought when reviewing executive remuneration is that the Group has:
•
•
•
•
Coherent remuneration policies and practices to attract and retain Executives;
Executives who will create value for shareholders;
Competitive remuneration offered benchmarked against the external market; and
Fair and responsible rewards to Executives having regard to the performance of the Company, the performance
of the Executives and the general pay environment.
The remuneration of Executives is detailed in Table 1 and their contractual arrangements are disclosed in “Section E –
Contractual Arrangements”.
❖ Executive Remuneration Approvals
The Group aims to reward Executives with a level of mix of remuneration commensurate with their position and
responsibilities within the company and aligned with market practice. Executive contracts are reviewed annually by the
Board, in the absence of a Remuneration Committee, for their approval. The process consists of a review of Group’s
business unit and individual performance, relevant comparative remuneration internally and externally and, where
appropriate, external advice independent of management.
Executive remuneration and incentive policies and practices must be aligned with the Group’s vision, values and overall
business objectives. Executive remuneration and incentive policies and practices must be designed to motivate
management to pursue the Group’s long-term growth and success and demonstrate a clear relationship between the
Group’s overall performance and the performance of executives.
C
Remuneration and Performance
The following table shows the gross revenue, losses, earnings per share (“EPS”) and share price of the Group as at 30
June 2023 and 30 June 2022.
Other Income ($)
Net loss after tax ($)
EPS ($)
30-Jun-23
30-Jun-22
222,642
(4,564,479)
(0.04)
40,762
(2,274,796)
(0.03)
Relationship between Remuneration and Company Performance
Given the current phase of the Group’s development, the Board does not consider earnings during the current financial
year when determining, and in relation to, the nature and amount of remuneration of KMP.
The pay and reward framework for key management personnel may consist of the following areas:
a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives
c) Variable Long-Term Incentives
The combination of these would comprise the key management personnel’s total remuneration.
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Directors’ Report
a)
b)
c)
Fixed Remuneration – Base Salary
The fixed remuneration for each KMP is influenced by the nature and responsibilities of each role and knowledge,
skills and experience required for each position. Fixed remuneration provides a base level of remuneration which
is market competitive and comprises a base salary inclusive of statutory superannuation. It is structured as a
total employment cost package.
Key management personnel are offered a competitive base salary that comprises the fixed component of pay
and rewards. External remuneration consultants may provide analysis and advice to ensure base pay is set to
reflect the market for a comparable role. No external advice was taken during the financial year. Base salary for
key management personnel is reviewed annually to ensure the KMP’s pay is competitive with the market. The
pay of key management personnel is also reviewed on promotion. There is no guaranteed pay increase included
in any key management personnel’s contract.
Variable Remuneration – Short -Term Incentives (STI)
Discretionary cash bonuses may be paid to KMP annually, subject to the requisite Board and shareholder
approvals where applicable. Cash bonus payments paid to Directors during the year are detailed in Table 1 below.
Variable Remuneration – Long-Term Incentives (LTI)
Options are issued at the Board’s discretion. Unlisted and listed options issued to Directors during the year are
detailed in Table 4 below.
Other than the options disclosed in section D of the Remuneration Report, there have been no other options
issued to employees at the date of this financial report.
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D
Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each KMP of the Group during the
financial year are:
Table 1 – Remuneration of KMP of the Group for the year ended 30 June 2023 and 30 June 2022 are set out below:
Short-term Employee Benefits
Post-
Employment
Share
Based
Payments
Superannuation Options
Total
Other
Bonus
$
$
$
$
$
30 June 2023
Directors
Mr Lincoln Ho
Mr Troy Flannery
Mr Mark Mitchell
Salary &
fees
$
59,525
91,085
84,168
Total
234,778
-
-
-
-
-
-
-
-
5,670
5,670
5,958
17,298
-
-
-
-
65,195
96,755
90,126
252,076
Total
Short-term Employee Benefits
Post-
Employment
Salary & fees
Other
Bonus
Superannuation
Share
Based
Payments
Options
30 June 2022
Directors
Mr Joshua
Letcher (i)
Mr Lincoln Ho
Mr Troy
Flannery
Mr Mark
Mitchell (ii)
Total
$
$
$
$
$
$
65,581
12,750 (iv)
50,000(iii)
53,000
53,000
13,500
-
-
-
20,000(iii)
20,000(iii)
-
6,558
5,300
5,300
1,350
185,081
12,750
90,000
18,508
-
-
-
-
-
134,889
78,300
78,300
14,850
306,339
(i) Mr Joshua Letcher resigned as Non-Executive Chairman on 11 March 2022.
(ii) Appointed as Technical Director on 11 March 2022.
(iii) Cash bonuses were subsequently paid by offsetting directors participate in capital raising in August 2021
Placement.
(iv) Termination fee paid to Mr Joshua Letcher.
The following table shows the relative proportions of remuneration that are linked to performance and those that are
fixed, based on the amounts disclosed as statutory remuneration expense in the tables above:
Table 2 – Relative proportion of fixed vs variable remuneration expense
Name
Directors
Mr Troy Flannery
Mr Mark Mitchell
Mr Lincoln Ho
Fixed Remuneration
2022
2023
At Risk – STI (%)
At Risk – LTI (%)
2023
2022
2023
2022
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
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Table 3 – Shareholdings of KMP (direct and indirect holdings)
Balance at
01/07/2022
Granted as
Remuneration
On Exercise
of Options
Net Change
– Other
Balance at
30/06/2023
30 June 2023
Directors
Mr Troy Flannery
Mr Mark Mitchell
Mr Lincoln Ho
Total
200,000
-
187,000
387,000
-
-
-
-
-
-
-
-
150,000 (i)
-
100,000 (ii)
250,000
350,000
-
287,000
637,000
(i) Participation in the April 2022 and October 2022 Placements, Mr Flannery increased his holdings by 100,000 and
50,000 for each Placement upon shareholders' approval.
(ii) Participation in the April 2022 and October 2022 Placements, Mr Ho was issued with 50,000 shares for each
Placement upon shareholders' approval.
Table 4 – Options of KMP (direct and indirect holdings)
30 June 2023
Directors
Mr Troy Flannery
Mr Mark Mitchell
Mr Lincoln Ho
Total
Balance at
01/07/2022
Granted as
Remuneration
Expired
Net Change –
Other
Balance at
30/06/20
23
Vested &
Exercisable
1,000,000
-
1,000,000
2,000,000
-
-
-
-
-
-
-
-
75,000(i)
-
50,000(ii)
125,000
1,075,000
-
1,050,000
2,125,000
1,075,000
-
1,050,000
2,125,000
(i) Participation in the April 2022 Placement, Mr Flannery was issued with 50,000 listed options free attaching to the
Placement shares issued on a 1:2 basis; Participation in the October 2022 Placement, Mr Flannery was issued with
25,000 unlisted options free attaching to the Placement shares issued on a 1:2 basis.
(ii) Participation in the April 2022 Placement, Mr Ho was issued with 25,000 listed options free attaching to the
Placement shares issued on a 1:2 basis; Participation in the October 2022 Placement, Mr Ho was issued with 25,000
unlisted options free attaching to the Placement shares issued on a 1:2 basis.
E
Contractual Arrangements
❖
Troy Flannery – Non‐Executive Director
-
-
Contract: Contract commenced on 26 November 2020.
Director’s Fee: To 31 July 2021 - $42,000 per annum (plus statutory superannuation entitlements).
From 1 August 2022 - $54,000 (plus statutory superannuation entitlements).
Term: See Note 1 below for details pertaining to re-appointment and termination.
-
❖ Mark Mitchell– Technical Director (Appointed on 11 March 2022)
Contract: Contract commenced on 11 March 2022.
Director’s Fee: $54,000 per annum (plus statutory superannuation entitlements).
Term: See Note 1 below for details pertaining to re-appointment and termination.
-
-
-
❖
Lincoln Ho – Non‐Executive Director
-
-
Contract: Contract commenced on 26 November 2020.
Director’s Fee: $42,000 per annum (plus statutory superannuation entitlements).
From 1 August 2022 - $54,000 (plus statutory superannuation entitlements).
Term: See Note 1 below for details pertaining to re-appointment and termination.
-
Note 1: The term of each Director is open to the extent that they hold office subject to retirement by rotation, as per
the Company’s Constitution, at each AGM and are eligible for re-election as a Director at the meeting. Appointment
shall cease automatically in the event that the Director gives written notice to the Board, or the Director is not re-elected
as a Director by the shareholders of the Company. There are no entitlements to termination or notice periods. Key
management personnel have no entitlement to termination payments in the event of removal for misconduct.
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F
Share-based Compensation
The Group rewards Directors for their performance and aligns their remuneration with the creation of shareholder
wealth by issuing share options. Share-based compensation is at the discretion of the Board and no individual has a
contractual right to receive any guaranteed benefits.
Options
There were no share-based options issued to directors during the financial year.
Shares
Short and Long-term Incentives
No short or long-term incentive-based shares were issued as remuneration to Directors during the financial year.
G
Equity Instruments Issued on Exercise of Remuneration Options
No remuneration options were exercised during the financial year.
H
Voting and Comments made at the Company’s 2022 Annual General Meeting (‘AGM’)
At the 2022 AGM, 99.17% of the votes received supported the adoption of the Remuneration Report for the year ended
30 June 2022. The Company did not receive any specific feedback at the AGM or throughout the year on its
remuneration practices.
I
Loans with KMP
There were no loans made to any KMP during the year ended 30 June 2023 (2022: Nil).
There were no loans from any KMP during the year ended 30 June 2023 (2022: Nil).
J
Other Transactions with KMP
During the year, the Group incurred geological consulting fees, payable to Jack Rory Pty Ltd (a company of which
Troy Flannery is a Director), and Saltus Corporate Pty Ltd (a company of which Lincoln Ho is a director). The group
also incurred geological consulting fees payable to director Mark Mitchell.
Jack Rory Pty Ltd
Saltus Corporate Pty Ltd
Mark Mitchell
2023
$
37,085
5,525
27,429
On 30 June 2023, there is $1,287 consulting fee remained unpaid to Troy Flannery.
All transactions were made on normal commercial terms and conditions and at market rates. There were no other
transactions with KMP during the year ended 30 June 2023.
Use of remuneration consultants
During the financial year ended 30 June 2023, the Company did not engage any remuneration consultants.
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K
Additional Information
The earnings of the Group for the five years to 30 June 2023 are summarised below.
Revenue
EBITDA
EBIT
Loss after income tax
Share Price ($)
EPS ($)
2023
$
222,642
(4,538,532)
(4,581,670)
(4,564,479)
0.105
(0.04)
2022
$
40,762
(2,240,313)
(2,274,061)
(2,274,796)
0.125
(0.03)
2021
$
65,616
(2,637,016)
(2,637,016)
(2,644,984)
0.305
(0.04)
2020
$
96,022
(1,909,662)
(1,909,662)
(1,863,640)
0.077
(0.04)
2019
$
42,751
(434,102)
(434,102)
(391,351)
0.140
(0.01)
[End of Audited Remuneration Report]
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Company has indemnified the Directors and Executives of the Company for costs incurred, in their capacity as a
Director or Executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and Executives
of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
ENVIRONMENTAL REGULATIONS
The Group is not currently subject to any specific environmental regulation. There have not been any known significant
breaches of any environmental regulations during the year under review and up until the date of this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purposes of taking
responsibility on behalf of the Company for all or part of these proceedings.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the Company who are former partners of RSM Australia Partners.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 has been
received and included within these financial statements.
33 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Directors’ Report
SHARES UNDER OPTION
At the date of this report there were the following unissued ordinary shares for which options are outstanding:
(i) 2,000,000 unlisted options expiring on 9 September 2023, exercisable at $0.175
(ii) 3,000,000 unlisted options expiring on 9 September 2023, exercisable at $0.234
(iii) 1,750,000 unlisted options expiring on 9 September 2023, exercisable at $0.50
(iv) 9,550,000 unlisted options expiring on 9 September 2024, exercisable at $0.30
(v) 15,355,714 unlisted options expiring on 9 September 2026, exercisable at $0.25
SHARE ISSUED ON THE EXERCISE OF OPTIONS
The following ordinary shares of Aldoro Resources Limited were issued during the year ended 30 June 2023 and up to
the date of this report on the exercise of options granted:
Number of shares
issued
1,900,000
Exercise price
$0.225
Date options
granted
12 November 2019
34 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Auditor’s Independence Declaration
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Group are important.
Details of the amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are
outlined in Note 23 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed
by the Corporations Act 2001.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The
Directors are satisfied that the provision of non-audit services by the auditors, as set out below, did not compromise
the auditor independent requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed by the Board of Directors to ensure they do not impact the
impartiality and objectivity of the auditor; and
• None of the services undermine the general principles relating to the auditor independence as set out in APES
110 Code of Ethics for Professional Accountants.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the directors
Troy Flannery
Non-Executive Director
28 September 2023
35 | P a g e
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Aldoro Resources Limited for the year ended 30 June
2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
Any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 September 2023
AIK KONG TING
Partner
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Financial Year Ended 30 June 2023
Revenue from continuing operations
Other income
Gain on sale of asset
Expenses
Administrative expenses
Advertising and marketing
Compliance and regulatory expenses
Consulting and legal fees
Employee benefit expenses
Impairment expense
Investor relations expense
Exploration consulting fee
Option fee
Occupancy expenses
Share-based payments expense
Exploration Expenditures
Other expenses
Unrealised gain/(loss) from financial assets
Loss from continuing operations before income tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive income
Other comprehensive income for the year, net of income tax
Other comprehensive income for the year, net of tax
Note
2023
$
2022
$
4
5(a)
5(b)
5(c)
10
18
11
6
222,642
-
9,512
31,250
(229,783)
(21,229)
(105,041)
(155,283)
(376,281)
(3,640,353)
-
(110,744)
-
(36,000)
-
(158,894)
(78,513)
125,000
(4,564,479)
-
(4,564,479)
(228,069)
(135,613)
(106,346)
(249,732)
(408,959)
(439,318)
(30,382)
(141,536)
(50,000)
(33,400)
-
-
(117,203)
(375,000)
(2,274,796)
-
(2,274,796)
-
-
-
-
Total comprehensive loss attributable to the members of Aldoro
Resources Limited
(4,564,479)
(2,274,796)
Loss per share for the year attributable to the members Aldoro
Resources Limited:
Basic loss per share ($)
Diluted loss per share ($)
7
7
(0.04)
(0.04)
(0.03)
(0.03)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
37 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Consolidated Statement of Financial Position
As at 30 June 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation expenditure
Property, plant and equipment
Financial assets at fair value through profit or loss
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
EQUITY
Issued Capital
Reserves
Accumulated losses
Total equity
Note
2023
$
2022
$
8
9
10
12
11,16
13
14
25
26
2,898,037
158,138
3,056,175
1,880,412
236,744
2,117,156
9,158,957
265,377
750,000
10,174,334
8,335,020
308,515
625,000
9,268,535
13,230,509
11,385,691
490,022
490,022
535,638
535,638
490,022
535,638
12,740,487
10,850,053
22,118,881
2,536,320
(11,914,714)
12,740,487
16,128,558
2,071,730
(7,350,235)
10,850,053
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
38 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Consolidated Statement of Changes in Equity
For the Financial Year Ended 30 June 2023
Issued Capital
$
Reserves
$
Accumulated
Losses
$
Total
$
At 1 July 2022
16,128,558
2,071,730
(7,350,235)
10,850,053
Loss for the year
Total comprehensive loss for the year after tax
-
-
-
-
(4,564,479)
(4,564,479)
(4,564,479)
(4,564,479)
Transactions with owners in their capacity as
owners
Issue of share capital
Share issue costs
Share-based payments
6,912,125
(921,802)
-
-
-
464,590
-
-
-
6,912,125
(921,802)
464,590
At 30 June 2023
22,118,881
2,536,320
(11,914,714)
12,740,487
At 1 July 2021
11,256,095
1,656,360
(5,075,439)
7,837,016
Loss for the year
Total comprehensive loss for the year after tax
-
-
-
-
(2,274,796)
(2,274,796)
(2,274,796)
(2,274,796)
Transactions with owners in their capacity as
owners
Issue of share capital
Share issue costs
Share-based payments
5,611,313
(738,850)
-
-
-
415,370
-
-
-
5,611,313
(738,850)
415,370
At 30 June 2022
16,128,558
2,071,730
(7,350,235)
10,850,053
The Consolidated Statement of Changes in Equity should be read
in conjunction with the notes to the financial statements.
39 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Consolidated Statement of Cash Flows
For the Financial Year Ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other income
Net cash used in operating activities
Cash flows from investing activities
Payments for exploration and evaluation costs
Payments for plant and equipment
Loans to other entities
Proceeds from sale of exploration tenements
Payments for purchase of exploration tenements
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from issued listed options
Share issue costs
Net cash from financing activities
Note
2023
$
2022
$
8(a)
10
12
(771,296)
17,189
-
(754,107)
(1,263,803)
729
8,770
(1,254,304)
(4,482,126)
-
5,370
20,000
(41,300)
(4,498,056)
(5,535,484)
(342,263)
(4,630)
250,000
(100,000)
(5,732,376)
6,727,000
-
(457,212)
6,269,788
5,146,083
-
(178,000)
4,968,083
Net increase/(decrease) in cash and cash equivalents
1,017,625
(2,018,597)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
8
1,880,412
2,898,037
3,899,009
1,880,412
The Consolidated Statement of Cash Flows should be
read in conjunction with the notes to the financial statements.
40 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Reporting Entity
Aldoro Resources Limited (referred to as “Aldoro” or the “Company”) is a company domiciled in Australia. The
address of the Company’s registered office and principal place of business is disclosed in the Corporate Directory
of the Annual Report. The consolidated financial statements of the Company as at and for the year ended 30
June 2023 comprise the Company and its subsidiaries (together referred to as the “Consolidated Entity” or the
“Group”).
(b)
Basis of Preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (“AASB”) and the Corporations Act 2001. The financial statements comply with International
Financial Reporting Standards (“IFRS”) adopted by the International Accounting Standards Board (“IASB”). Aldoro
Resources Limited is a for-profit entity for the purpose of preparing the financial statements.
The consolidated financial statements were authorised for issue by the Board of Directors on 28 September 2023.
Basis of measurement
The financial statements have been prepared on a going concern basis in accordance with the historical cost
convention, unless otherwise stated.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in Note 27.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
New standards and interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30
June 2023. The consolidated entity has not yet assessed the impact of these new or amended Accounting
Standards and Interpretations.
Significant Judgements and Estimates
The preparation of 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 areas where assumptions and estimates are significant
to the financial statements are disclosed in Note 2.
41 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i)
Comparatives
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
(ii)
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.
(iii)
Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Aldoro Resources
Limited (‘Company’ or ‘parent entity’) as at 30 June 2023 and the results of all subsidiaries for the year then
ended. Aldoro Resources Limited and its subsidiaries together are referred to in this financial report as the Group.
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern
the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting
rights. The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of
the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
The acquisition method of accounting is used to account for business combinations by the Group. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest acquired
is recognised directly in equity attributable to the parent.
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, statement of changes in equity and statement of
financial position respectively.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss in profit or loss.
(iv)
Functional and presentation currency
The consolidated financial statements have been presented in Australian dollars, which is the Group’s functional
currency.
42 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in
the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to
be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted
from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other
assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(vi)
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might
be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use
is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific
to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows
are grouped together to form a cash-generating unit.
(vii) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid
when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
43 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 2
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various factors,
including expectations of future events, management believes to be reasonable under the circumstances. The resulting
accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and
assumptions in these financial statements that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are disclosed below.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the
mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production at the
mine include the level of reserves and resources, future technology changes, which could impact the cost of mining,
future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be
recoverable in the future, they will be written off in the period in which this determination is made.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees or suppliers by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using
either the Binomial or Hoadley ES02 model taking into account the terms and conditions upon which the instruments
were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have
no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit
or loss and equity.
NOTE 3
SEGMENT INFORMATION
The Group operates only in one reportable segment being predominately in the area of gold and nickel mineral
exploration in Australia. The Board considers its business operations in gold and nickel mineral exploration to be its
primary reporting function. Results are analysed as a whole by the chief operating decision maker, this being the Board
of Directors. Consequently, revenue, profit, net assets and total assets for the operating segment are reflected in this
financial report.
Accounting Policy
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for
the allocation of resources to operating segments and assessing their performance.
NOTE 4
OTHER INCOME
Interest income
Other income
2023
$
2022
$
17,189
205,453
222,642
734
8,778
9,512
Other income mainly includes the R & D expenditures tax incentive refund of $184,500 and the $20,000 sale of Blue
Ribbon tenement E29/1030.
44 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 4 OTHER INCOME (continued)
Accounting Policy
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the
contract with a customer; identifies the performance obligations in the contract; determines the transaction price which
takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or
service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as
discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events.
Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of
variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The
measurement constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in
the form of a separate refund liability.
Interest
Interest income is recognised as interest accrues.
Other Revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
All revenue is stated net of the amount of goods and services tax.
NOTE 5 EXPENSES
(a) Administrative expenses
Accounting and fees
Company secretarial and financial management fees
Travel and accommodation expenses
General
(b) Consultancy and legal expenses
Corporate advisory fees
Consulting fees
Legal fees
(c) Employee benefits expense
Salaries
Directors’ bonuses
Superannuation
Consulting fees
2023
$
2022
$
67,848
116,172
-
45,763
229,783
124,650
-
30,633
155,283
296,023
-
31,082
49,176
376,281
70,594
111,952
9,615
35,908
228,069
136,078
3,348
110,306
249,732
197,831
90,000
18,508
102,620
408,959
45 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 6
INCOME TAX
(a) The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense reported in the statement of profit or loss and other
comprehensive income
(b) The prima facie tax on loss from ordinary activities before income tax is
reconciled to the income tax as follows:
Loss before income tax expense
Prima facie tax benefit on loss before income tax at 30% (2022: 30%)
Tax effect of:
Amounts not deductible in calculating taxable income
Changes in unrecognised temporary differences
Tax losses not recognised
Income tax expense/(benefit)
(c)
Deferred tax assets not brought to account are:
Accruals
Prepayments
Exploration
Tax losses
Other
Total deferred tax assets not brought to account
2023
$
2022
$
-
-
-
-
-
-
(4,564,479)
(1,369,343)
(2,274,795)
(682,438)
178,355
461,254
729,734
-
82
(1,867,845)
2,550,201
-
4,380
(5,031)
(669,376)
4,358,558
46,870
3,735,400
25,215
(27,581)
(1,826,768)
4,427,031
49,893
2,647,790
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought to
account at 30 June 2023 because the directors do not believe it is appropriate to regard realisation of the deferred tax
assets as probable at this point in time. These benefits will only be obtained if:
•
•
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the
expenditure.
Accounting Policy
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax
expense (income).
Current Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets)
are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred Tax
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well as unused tax losses.
46 | P a g e
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Notes to the Consolidated Financial Statements
NOTE 6
INCOME TAX (continued)
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss
when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting
period. Their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate
to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities
where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability
will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered
or settled.
NOTE 7
LOSS PER SHARE
Basic loss per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of
the Company by the weighted average number of ordinary shares outstanding during the year.
Diluted loss per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the
Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into
ordinary shares.
2023
$
2022
$
Net loss for the year
(4,564,479)
(2,274,796)
Weighted average number of ordinary shares for basic and diluted loss per share.
112,903,973
89,859,053
Basic and diluted loss per share ($)
(0.04)
(0.03)
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Notes to the Consolidated Financial Statements
NOTE 7
LOSS PER SHARE (continued)
Accounting Policy
Basic Earnings Per Share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members of the
Company, 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 Earnings Per Share
Diluted earnings 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 shares assumed to have been issued for no consideration in relation to dilutive
potential ordinary shares.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Cash at bank earns interest at floating rates based on daily deposit rates.
The Group’s exposure to interest rate and credit risks is disclosed in Note 15.
(a) Reconciliation of net loss after tax to net cash flows from operations
Loss for the financial year
Adjustments for:
Depreciation
Impairment expense
Dr Fu consulting fee paid by shares
Share issued for Directors’ Bonuses
Exploration expenditures (i)
Unrealised gain on financial assets
Gain on sale of assets
Changes in assets and liabilities
Trade and other receivables
Trade and other payables
Net cash used in operating activities
2023
$
2022
$
2,898,037
2,898,037
1,880,412
1,880,412
2023
$
2022
$
(4,564,479)
(2,274,796)
43,138
3,640,353
60,000
-
158,894
(125,000)
-
33,748
439,318
-
90,000
375,000
(31,250)
78,604
(45,617)
(754,107)
(155,276)
268,952
(1,254,304)
(i)
The reclassification of capitalised Namibia Project exploration expenditures to Profit and Loss. The
reason behind is that the legal rights of Namibia Project tenements have not been transferred to Aldoro
at the reporting date. The expenditures still belong to investing activities and thus are added back when
do the reconciliation for operating activities.
48 | P a g e
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Notes to the Consolidated Financial Statements
NOTE 8
CASH AND CASH EQUIVALENTS (continued)
(b) Non-cash investing and financing activities
Acquisition of exploration and evaluation assets (Note 14)
Shares issued to lead manager (Note 14)
2023
$
125,125
464,590
589,715
2022
$
229,750
144,000
373,750
Accounting Policy
Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made in varying
periods between one day and three months, depending on the immediate cash requirements of the Group and earn
interest at the respective short-term deposit rates.
NOTE 9
TRADE AND OTHER RECEIVABLES
Prepayments
GST receivable
Other receivables
(a) Allowance for expected credit losses
2023
$
2022
$
16,771
140,358
1,009
158,138
91,937
138,428
6,379
236,744
The consolidated entity has recognised a loss of $nil in profit or loss in respect of the expected credit losses for the year
ended 30 June 2023 (2022: $nil).
Accounting Policy
Goods and Services Tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset of the assets or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included as a current asset or liability in the statement of
financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST on investing and financial
activities, which are disclosed as operating cash flows.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
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Notes to the Consolidated Financial Statements
NOTE 10
EXPLORATION AND EVALUATION EXPENDITURE
2023
$
2022
$
Carrying amount of exploration and evaluation expenditure
9,158,957
8,335,020
At the beginning of the year
Exploration expenditure incurred
Tenements acquired during the period(i)
Tenements sold during the period(ii)
Impairment expense (iii)
At the end of the year
8,335,020
4,317,865
166,425
(20,000)
(3,640,353)
9,158,957
2,959,104
5,535,484
329,750
(50,000)
(439,318)
8,335,020
(i) On 7 December 2022, the Company issued the 325,000 ordinary shares valued at $125,125 pursuant to the binding
tenement sale agreement (Agreement) signed in August 2021 with Mining Equities Pty Ltd for the acquisition of
Mining Equities’ 100% interest in E58/571. The shares were issued upon the grant of the tenement application and
the transfer from Mining Equities to Aldoro is completed.
As announced on 20 March 2023, the Company entered into a binding Heads of Agreement (“HoA”) with Logan
Exploration and Investments CC and Okonde Mining and Exploration CC (together, the Vendors) to acquire an 85%
interest in mineral permit EPL 7373, EPL 7372 and EPL 7895, which together make up the Kameelburg Project (the
“Project”) in Namibia (“Transaction”). The terms for the Transaction as follows:
• An initial payment of $N500,000 (AUD $41,300) upon signing the agreement;
• A payment of $N2,500,000 (AUD $201,000) at Completion; and
• 500,000 fully paid ordinary shares in the capital of Aldoro;
Conditions Precedent include:
-
-
-
-
completion of due diligence by Aldoro on the Project and the Permits to the satisfaction of Aldoro and
confirmed in writing;
the successful renewal of EPL 7373, which is currently undergoing renewal;
the Parties obtaining any necessary shareholder, regulatory, governmental, or third-party consents and/or
approvals (as applicable) in order to allow the Parties to complete their respective obligations under this
Agreement; and
the Permits remaining in good standing as at the date of satisfaction of the last Condition.
The Company confirms that the initial payment of $N500,000 (AUD $41,300) has been made. The Board has
conducted additional due diligence on a site visit to Namibia on the 1st May 2023, and the Company confirmed
Namibia as a favorable, mining friendly jurisdiction with established mining regulations and long history of mining
as announced on 18 May 2023.
(ii) During the year, the management surrendered the Narndee project tenement E59/2223. E59/2238 was
underwent compulsory 40% surrender. Targeting Ni-Cu_PGE mineralisation is on-going with drilling programmes
concentrated in E59/2258. A compulsory 40% reduction in E59/2258 is required on its anniversary date next
financial year. Based on the information provided, a total of $3,640,353 impairment expenses was recognised in
2023.
Accounting Policy
Acquisition, exploration and evaluation costs associated with mining tenements are accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that the Group’s rights of tenure to that
area of interest are current and that the costs are expected to be recouped through the successful commercial
development or sale of the area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
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Notes to the Consolidated Financial Statements
NOTE 10 EXPLORATION AND EVALUATION EXPENDITURE (continued)
Costs in relation to an abandoned area are written off in full against profit in the period in which the decision to abandon
the area is made.
Each area of interest is also reviewed annually, and acquisition costs written off to the extent that they will not be
recoverable in the future.
NOTE 11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Listed ordinary shares
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous
financial year are set out below:
Opening fair value
Additions
Change in fair value
Closing fair value
2023
$
2022
$
750,000
750,000
625,000
625,000
625,000
-
125,000
750,000
-
1,000,000
(375,000)
625,000
Financial assets are recorded at level 1 fair value, being quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date.
Accounting Policy
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based on
both the business model within which such assets are held and the contractual cash flow characteristics of the financial
asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated
entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial
recognition.
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Notes to the Consolidated Financial Statements
NOTE 11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance
depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable
information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit
impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's
lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the
loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss.
NOTE 12 PROPERTY, PLANT AND EQUIPMENT
Buidlings - at cost
Less: Accumulated depreciation
Vehicles - at cost
Less: Accumulated depreciation
Computer Equipment - at cost
Less: Accumulated depreciation
30-Jun-23
$
247,390
(54,117)
193,273
90,129
(21,097)
69,032
4,744
(1,672)
3,072
265,377
30-Jun-22
$
247,390
(23,193)
224,197
90,129
(9,831)
80,298
4,744
(724)
4,020
308,515
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Notes to the Consolidated Financial Statements
NOTE 12 PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Land and
Motor
Computer
buildings
Vehicles
Equipment
Total
Consolidated
$
$
$
$
Balance at 1 July 2021
Additions
Depreciation expense
-
247,390
(23,193)
-
90,129
(9,831)
-
4,744
(724)
-
342,263
(33,748)
Balance at 30 June 2022
224,197
80,298
4,020
308,515
Consolidated
$
$
$
$
Balance at 1 July 2022
Additions
Depreciation expense
224,197
80,298
-
-
(30,924)
(11,266)
4,020
-
(948)
308,515
-
(43,138)
Balance at 30 June 2023
193,273
69,032
3,072
265,377
Accounting Policy
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Buildings 8 years
Motor Vehicles 8 years
Computer Equipment 5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit
to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any
revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
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Notes to the Consolidated Financial Statements
NOTE 13
TRADE AND OTHER PAYABLES
Trade payables (i)
Accrued expenses
Other payables
2023
$
2022
$
472,866
14,600
2,556
490,022
449,314
80,000
6,324
535,638
(i)
Trade payables are non‐interest bearing and are normally settled on 30‐day terms.
Accounting Policy
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short‐term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
NOTE 14 ISSUED CAPITAL
(a) Issued and fully paid
2023
2022
No.
$
No.
$
Ordinary shares
134,423,743
22,118,881
99,213,589
16,128,558
(b) Movement reconciliation
Date
Number
Issue Price
$
At 1 July 2021
Issue of ordinary shares for Meridian Mining tenement acquisition
Placement
Issued to the Lead Manager in lieu of capital raising fees
Exercise of listed options at $0.3
Exercise of unlisted options at $0.175
Exercise of unlisted options at $0.175
Exercise of unlisted options at $0.234
Exercise of unlisted options at $0.175
Exercise of unlisted options at $0.234
Exercise of unlisted options at $0.225
Exercise of unlisted options at $0.234
Issued to directors for participation in placement in August
Exercise of unlisted options at $0.234
Exercise of unlisted options at $0.234
Exercise of unlisted options at $0.234
Exercise of unlisted options at $0.234
Issue ordinary shares for Trafalgar tenement acquisition
Placement
Share issue costs
At 30 June 2022
29/07/2021
19/08/2021
19/08/2021
26/08/2021
26/08/2021
2/09/2021
2/09/2021
30/09/2021
30/09/2021
22/10/2021
18/11/2021
9/12/2021
15/12/2021
8/02/2022
24/02/2022
2/03/2022
6/04/2022
21/04/2022
80,516,203
441,176
5,675,000
360,000
21,210
200,000
200,000
500,000
100,000
400,000
100,000
400,000
325,000
200,000
100,000
100,000
100,000
275,000
9,200,000
‐
99,213,589
‐
$0.340
$0.400
$0.400
$0.300
$0.175
$0.175
$0.234
$0.175
$0.234
$0.225
$0.234
$0.400
$0.234
$0.234
$0.234
$0.234
$0.290
$0.250
‐
11,256,095
150,000
2,270,000
144,000
6,363
35,000
35,000
117,000
17,500
93,600
22,500
93,600
130,000
46,800
23,400
23,400
23,400
79,750
2,300,000
(738,850)
16,128,558
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Notes to the Consolidated Financial Statements
NOTE 14 ISSUED CAPITAL (continued)
(b) Movement reconciliation
Date
Number
Issue Price
$
At 1 July 2022
Issue of ordinary shares in lieu of consulting service fee
Issue of ordinary shares to directors for April 2022 Placement
Placement
Exercise of unlisted options at $0.225
Exercise of unlisted options at $0.225
Issued of ordinary shares to directors for October 2022 Placement
Issued shares for acquisition of tenement E58/571
Placement
Share issue costs
At 30 June 2023
08/07/2022
22/07/2022
25/10/2022
11/11/2022
16/11/2022
01/12/2022
07/12/2022
18/04/2023
25/07/2022
99,213,589
223,728
150,000
11,000,000
1,000,000
900,000
100,000
325,000
21,511,426
-
134,423,743
-
$0.340
$0.400
$0.400
$0.300
$0.175
$0.175
$0.234
$0.175
-
16,128,558
60,000
37,500
2,475,000
225,000
202,500
22,500
125,125
3,764,500
(921,802)
22,118,881
Ordinary shares entitle the holder to participate in the dividends and the proceeds on winding up in proportion to the
number of and amounts paid on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
Accounting Policy
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. Incremental costs directly attributable to the issue of new shares or options for the acquisition
of a business are not included in the cost of the acquisition as part of the purchase consideration.
If the Company reacquires its own equity instruments, for example, as a result of a share buy-back, those instruments
are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and
the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly
in equity.
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest
rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability
of the financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.
The Group uses different methods to measure and manage different types of risks to which it is exposed. These include
monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for
interest rate and foreign exchange prices. Ageing analysis and monitoring of specific credit allowances are undertaken
to manage credit risk. Liquidity risk is monitored through the development of future cash flow forecasts.
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Notes to the Consolidated Financial Statements
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Risk management is carried out by Management and overseen by the Board of Directors with assistance from suitably
qualified external advisors.
The main risks arising for the Group are foreign exchange risk, interest rate risk, credit risk and liquidity risk. The Board
reviews and agrees policies for managing each of these risks and they are summarised below.
The carrying values of the Group’s financial instruments are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Financial Liabilities
Trade and other payables
2023
$
2022
$
2,898,037
158,138
750,000
3,806,175
490,022
490,022
1,880,412
236,744
625,000
2,742,156
535,638
535,638
(a) Market risk
(i)
The Group was not significantly exposed to foreign currency risk fluctuations.
Foreign exchange risk
Interest rate risk
(ii)
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result
of changes in the market interest rates on interest bearing financial instruments. The Group’s exposure to this risk
relates primarily to the Group’s cash and any cash on deposit. The Group does not use derivatives to mitigate these
exposures. The Group manages its exposure to interest rate risk by holding certain amounts of cash in fixed and floating
interest rate facilities. At the reporting date, the interest rate profile of the Group’s interest-bearing financial
instruments was:
Cash and cash equivalents
2023
2022
Weighted
average
interest rate
%
1.49%
Weighted
average
interest rate
%
0.08%
Balance
$
2,898,037
Balance
$
1,880,412
Sensitivity
Within the analysis, consideration is given to potential renewals of existing positions and the mix of fixed and variable
interest rates. The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting
date. The 1% increase and 1% decrease in rates is based on reasonably expected possible changes over a financial year.
At 30 June 2023, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
equity would have been affected as follows:
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Notes to the Consolidated Financial Statements
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Judgements of reasonably possible
movements:
+ 1.0% (100 basis points)
- 1.0% (100 basis points)
Profit
higher/(lower)
2023
$
28,980
(28,980)
Profit
higher/(lower)
2022
$
18,804
(18,804)
Credit risk
(b)
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and other
receivables and other financial assets. The Group’s exposure to credit risk arises from potential default of the
counterparty, with maximum exposure equal to the carrying amount of the financial assets.
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy that all customers
who wish to trade on credit terms will be 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. There are no significant concentrations of credit risk within the Group except for cash and cash
equivalents.
Liquidity risk
(c)
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 its reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by
continuously monitoring forecast and actual cash flows. The Group does not have any external borrowings.
The following are the contractual maturities of financial liabilities:
2023
1 year or less
$
1-5 years
$
> 5 years
$
Total
$
Trade and other payables
490,022
2022
Trade and other payables
535,638
(d)
Capital risk management
-
-
-
-
490,022
535,638
The Group’s objectives when managing capital are to:
• Safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders
and benefits for other stakeholders; and
• Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the number of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Given the stage of the Group’s development there are no formal targets set for return on capital. The Group is not
subject to externally imposed capital requirements. The net equity of the group is equivalent to capital. Net capital is
obtained through capital raisings on the Australian Securities Exchange (“ASX”).
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Notes to the Consolidated Financial Statements
NOTE 16
FAIR VALUE MEASUREMENT
Fair value hierarchy
The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a
three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: Unobservable inputs for the asset or liability
Consolidated - 2023
Assets
Financial assets at fair value through profit or loss
Total assets
Liabilities
Total liabilities
Consolidated - 2022
Assets
Total assets
Liabilities
Total liabilities
Accounting Policy
Level 1
$
Level 2
$
Level 3
$
Total
$
750,000
750,000
-
-
Level 1
$
Level 2
$
625,000
625,000
-
-
-
-
-
-
-
-
-
-
Level 3
$
-
-
-
-
-
-
-
-
750,000
750,000
-
-
Total
$
625,000
625,000
-
-
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date; and assumes that the transaction will take place
either: in the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the
fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to
another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and
a comparison, where applicable, with external sources of data.
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Notes to the Consolidated Financial Statements
NOTE 17
RELATED PARTY DISCLOSURE
(a)
Key Management Personnel Compensation
The aggregate compensation made to directors and other members of key management personnel of the Group is set
out below.
Short‐term employee benefits
Post‐employment employee benefits
Equity benefits
(b)
Transactions with related parties
2023
$
2022
$
234,778
17,298
‐
252,076
287,831
18,508
‐
306,339
During the year, the Group incurred geological consulting fees, payable to Renewable Holdings Pty Ltd (a company
of which Joshua Letcher is a Director), Jack Rory Pty Ltd (a company of which Troy Flannery is a Director), and Saltus
Corporate Pty Ltd (a company of which Lincoln Ho is a director). The group also incurred geological consulting fees
payable to director Mark Mitchell.
Jack Rory Pty Ltd
Renewable Holdings Pty Ltd
Saltus Corporate Pty Ltd
Mark S Mitchell
Total
2023
$
37,085
‐
5,525
27,429
70,039
2022
$
31,093
94,841
650
7,800
134,384
On 30 June 2023, there is $1,287 consulting fee remained unpaid to Troy Flannery. All transactions were made on
normal commercial terms and conditions and at market rates. There were no other transactions with KMP during
the year ended 30 June 2023.
At 30 June 2022, $2,640 was payable to Mark Mitchell and $3,861 was payable to Jack Rory Pty Ltd.
NOTE 18
SHARE‐BASED PAYMENTS
Recognised as a share‐based payment expense
Share issued to acquire tenement (i)
Unlisted options issued to Corporate Advisor (ii)
Shares issued in consideration of services (iii)
Reconciliation:
Recognised as exploration and evaluation expenditure
Recognised as share issue costs in equity
Recognised as corporate advisory fees in the statement of profit or loss and other
comprehensive income
2023
$
2022
$
125,125
464,590
60,000
649,715
2023
$
125,125
464,590
60,000
‐
415,370
‐
415,370
2022
$
‐
415,370
‐
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Notes to the Consolidated Financial Statements
NOTE 18 SHARE-BASED PAYMENTS (continued)
(i)
(ii)
During the year, the consolidated entity issued 325,000 ordinary shares to acquire tenement E58/571.
On 25 July 2022, the consolidated entity issued 2,000,000 unlisted options, expiring 9 September 2024 with
an exercise price of $0.30 to the Lead Manager, Xcel Capital Pty Ltd (“Xcel”), for its services provided in
relation to the April 2022 Placement.
On 29 November 2022, the consolidated entity issued 2,000,000 unlisted options, expiry 9 September 2024 at
$0.30 to Xcel for its Lead Manager services provided in relation to the October 2022 Placement.
(iii) During the year, the consolidated entity issued 223,728 ordinary shares to a consultant in lieu of services
provided.
Unlisted Options
Set out below is a summary of unlisted options granted as share-based payments during the year:
2023
Grant date
Expiry date
18-11-2022
12-11-2019
09-09-2023
07-09-2020
09-09-2023
07-09-2020
09-09-2023
19-04-2021
19-08-2021
09-09-2023
25-07-2022(i) 09-09-2024
29-11-2022(ii) 09-09-2024
Exercise
price
$0.225
$0.175
$0.234
$0.234
$0.500
$0.300
$0.300
All unlisted options vested immediately.
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
1,900,000
2,000,000
200,000
2,800,000
1,750,000
-
-
8,650,000
-
-
-
-
-
2,000,000
2,000,000
4,000,000
(1,900,000)
-
-
-
-
-
-
(1,900,000)
-
-
-
-
-
-
-
-
-
2,000,000
200,000
2,800,000
1,750,000
2,000,000
2,000,000
10,750,000
(i) On 25 July 2022, the consolidated entity issued 2,000,000 unlisted options, expiring 9 September 2024 with an
exercise price of $0.30 to the Lead Manager, Xcel Capital Pty Ltd (“Xcel”), for its services provided in relation to the
April 2022 Placement.
(ii) On 29 November 2022, the consolidated entity issued 2,000,000 unlisted options, expiry 9 September 2024 at
$0.30 to Xcel for its Lead Manager services provided in relation to the October 2022 Placement.
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Notes to the Consolidated Financial Statements
NOTE 18 SHARE-BASED PAYMENTS (continued)
The unlisted options issued to Xcel Capital Pty Ltd have been valued using the Black Scholes valuation model. The model
and assumptions are shown in the table below:
Black Scholes Valuation Model
Grant Date
Expiry Date
Strike (Exercise) Price
Underlying Share Price (at date of issue)
Risk-free Rate (at date of issue)
Volatility
Number of Options Issued
Dividend Yield
Fair value per option
Total Fair Value of Options
25/07/2022
09/09/2024
$0.30
$0.16
2.92%
100%
2,000,000
0%
$0.0642
$128,394
30/11/2022
09/09/2024
$0.30
$0.32
3.14%
100%
2,000,000
0%
$0.1681
$336,196
Set out below is a summary of unlisted options granted as share-based payments in the prior year:
2022
Grant date
Expiry date
18-11-2022
12-11-2019
09-09-2023
07-09-2020
09-09-2023
07-09-2020
19-04-2021
09-09-2023
19-08-2021(i) 09-09-2023
Exercise
price
$0.225
$0.175
$0.234
$0.234
$0.500
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
2,000,000
2,500,000
2,000,000
2,800,000
-
9,300,000
-
-
-
-
1,750,000
1,750,000
(100,000)
(500,000)
(1,800,000)
-
-
(2,400,000)
-
-
-
-
-
-
1,900,000
2,000,000
200,000
2,800,000
1,750,000
8,650,000
All unlisted options vested immediately.
(i) On 19 August 2021, the Company issued 1,750,000 unlisted options to Xcel Capital Pty Ltd, the Lead
Manager, as part of the capital raising fee of the placement. These options vest immediately, entire amount
has been recorded in share issue costs at 30 June 2023.
The unlisted options issued to Xcel Capital Pty Ltd have been valued using the Hoadley ESO2 valuation model. The model
and assumptions are shown in the table below:
Hoadley ES02 Valuation Model
Grant Date
Expiry Date
Strike (Exercise) Price
Underlying Share Price (at date of issue)
Risk-free Rate (at date of issue)
Volatility
Number of Options Issued
Dividend Yield
Early Exercise Multiple
Fair value per option
Total Fair Value of Options
19/08/2021
9/09/2023
$0.50
$0.51
0.03%
100%
1,750,000
0%
2.5x
$0.24
$415,370
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Notes to the Consolidated Financial Statements
NOTE 18 SHARE-BASED PAYMENTS (continued)
Listed Options
During the 2023 financial year, there were no new listed options issued as share based payments.
Set out below is a summary of listed options granted as share-based payments in the prior year:
2022
Grant date
Expiry date
31-08-2023
25-02-2021
31-08-2023
4-03-2021
31-08-2023
4-03-2021
19-04-2021
31-08-2023
21-04-2022(i) 31-08-2023
Exercise
price
$0.300
$0.300
$0.300
$0.300
0.0300
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
11,042,831
2,453,243
3,882,400
3,500,000
-
20,878,474
-
-
-
-
4,600,000
4,600,000
-
(21,210)
-
-
(21,210)
-
-
-
-
-
11,042,831
2,432,033
3,882,400
3,500,000
4,600,000
25,457,264
(i) On 21 April 2022, the Company conducted a placement of 9,200,000 ordinary fully paid shares (“Placement Shares”)
priced at $0.25 to raise $2,300,000 before costs, and 4,600,000 free-attaching options for each Placement Share on
a 1:2 basis.
Accounting Policy:
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount
of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions
that do not determine whether the consolidated entity receives the services that entitle the employees to receive
payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The
amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less
amounts already recognised in previous periods.
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Notes to the Consolidated Financial Statements
NOTE 18 SHARE-BASED PAYMENTS (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either
the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the
award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied
by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at
the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid
to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining
vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
NOTE 19
COMMITMENTS
(a) Tenement Commitments
Below are the commitments in relation to its exploration and evaluation assets:
2023
$
2022
$
Within one year
Later than one year but not later than five years
45,631
293,717
339,348
During the year, the Company entered into a binding Heads of Agreement (“HoA”) with Logan Exploration and
Investments CC and Okonde Mining and Exploration CC (together, the Vendors) to acquire an 85% interest in mineral
permit EPL 7373, EPL 7372 and EPL 7895, which together make up the Kameelburg Project (the “Project”) in Namibia
(“Transaction”). The terms for the Transaction as follows:
424,885
1,321,459
1,746,344
• An initial payment of $N500,000 (AUD $41,300) upon signing the agreement; (completed)
• A payment of $N2,500,000 (AUD $201,000) at Completion; and
• 500,000 fully paid ordinary shares in the capital of Aldoro;
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Notes to the Consolidated Financial Statements
NOTE 19
COMMITMENTS (continued)
Conditions Precedent include:
-
-
-
-
completion of due diligence by Aldoro on the Project and the Permits to the satisfaction of Aldoro and
confirmed in writing;
the successful renewal of EPL 7373, which is currently undergoing renewal;
the Parties obtaining any necessary shareholder, regulatory, governmental, or third-party consents and/or
approvals (as applicable) in order to allow the Parties to complete their respective obligations under this
Agreement; and
the Permits remaining in good standing as at the date of satisfaction of the last Condition.
NOTE 20
CONTINGENCIES
There are no contingent assets or liabilities as at 30 June 2023.
NOTE 23
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia Partners for:
Audit and review of the financial reports
Other services – corporate finance
NOTE 24
INVESTMENT IN CONTROLLED ENTITIES
2023
$
2022
$
40,548
-
40,548
38,000
-
38,000
Principal Activities
Country of
Incorporation
Ownership interest
Altilium Metals Pty Ltd
Gunex Pty Ltd
Aldoro Resources Namibia (Pty)
Ltd()
Exploration
Exploration
Exploration
Australia
Australia
Namibia
2023
%
100
100
100
2022
%
100
100
-
(i) The whole owned subsidiary was established in February 2023 in Namibia for the Kameelburg Project in
Namibia. The company remains dormant as at 30 June 2023.
NOTE 25
RESERVES
Share based payment reserve
Reconciliation
Balance at beginning of the year
Issue of unlisted options
Balance at end of the year
Reserves
The reserve is used to accumulate amounts from the issue of options.
2023
$
2022
$
2,536,320
2,536,320
2,071,730
2,071,730
2,071,730
464,590
2,536,320
1,656,360
415,370
2,071,730
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Notes to the Consolidated Financial Statements
NOTE 26 ACCUMULATED LOSSES
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
There are no dividends declared for the year ended 30 June 2023 (2022: Nil)
NOTE 27
PARENT ENTITY
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss
2023
$
2022
$
(7,350,235)
(4,564,479)
(11,914,714)
(5,075,439)
(2,274,796)
(7,350,235)
2023
$
2022
$
2,808,395
10,422,114
2,064,491
9,321,200
13,250,509
11,385,691
490,022
490,022
535,638
535,638
22,118,881
16,128,558
2,536,320
(11,914,713)
12,740,487
2,071,730
(7,350,235)
10,850,053
(4,564,478)
(2,274,796)
(4,564,478)
(2,274,796)
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Notes to the Consolidated Financial Statements
NOTE 27 PARENT ENTITY (continued)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
Exploration and evaluation commitments
The parent entity had exploration and evaluation commitments as disclosed in Note 19.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed through
the report, except for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in joint ventures are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be
an indicator of an impairment of the investment.
NOTE 28
EVENTS AFTER THE REPORTING DATE
On 14 July 2023, Tietto Minerals Ltd founder and former Managing Director Dr Caigen Wang joins the Aldoro Resources
board as a non-executive director.
On 18 July 2023, Aldoro issued 200,000 ordinary shares for director participation in April 2023 placement as approved
by shareholder on 17 July 2023. Meanwhile, the Company issued 10,855,714 free attaching unlisted options to the April
2023 Placement shares (on a 1:2 basis) approved by shareholders at the General Meeting. The options are exercisable
at $0.25 on or before 9 September 2026. In addition, the Company issued 4,500,000 unlisted incentive options to
directors as approved by shareholders at the General Meeting, and the incentive options have the same terms as other
free attaching options issued the same day.
On 7 August 2023, the Company executed a Joint Venture Agreement with Logan Exploration Investments CC and
Okonde Mining and Exploration CC respectively for the Kameelburg Rare Earths Project which includes licenses EPL7372,
7373 and 7895 in Namibia.
Other than stated above, there has been no other matter or circumstance that has arisen since the end of the financial
year that has significantly affected, or may significantly affect, the operations of the Group, the results of those
operations, or the state of affairs of the Group.
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Directors’ Declaration
In the Directors’ opinion:
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001, including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
ii) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the
financial year ended on that date.
b)
c)
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section 295(5)(a)
of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Troy Flannery
Non-Executive Director
28 September 2023
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RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of ALDORO RESOURCES LIMITED
Opinion
We have audited the financial report of Aldoro Resources Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement
of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2023 and of its financial
performance for the year then ended; 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 auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (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.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed this matter
Exploration and Evaluation Expenditure
Refer to Note 10 in the financial statements
The Group has capitalised exploration and evaluation
expenditure with a carrying value of $9,158,957 as at
30 June 2023.
We considered this to be a key audit matter due to the
significant management
in
assessing the carrying value of the asset including:
judgments
involved
Determination of whether the exploration and
evaluation expenditure can be associated with
finding specific mineral resources and the basis
on which that expenditure is allocated to an area
of interest;
Assessing whether exploration and evaluation
activities have reached a stage at which the
existence of economically recoverable reserves
may be determined; and
Assessing whether any indicators of impairment
are present and if so, judgement applied to
determine and quantify any impairment loss.
Our audit procedures included:
Assessing the Group’s accounting policy for
compliance with Australian Accounting Standards;
Ensuring that the right to tenure of the area of
interest is current;
Testing, on a sample basis, additions of
capitalised
evaluation
documentation,
supporting
expenditure
including assessing whether amounts are
capitalised
the Group’s
accounting policy;
exploration
to
in accordance with
and
Assessing and evaluating
impairment of
exploration and evaluation expenditure provided
for during the year is appropriate;
and
evaluating management’s
assessment of whether indicators of impairment
existed at the reporting date;
Assessing
Assessing management’s determination
that
exploration and evaluation activities have not yet
reached a stage where the existence or otherwise
of economically recoverable reserves may be
reasonably determined;
Enquiring with management and
reviewing
budgets and other documentation to gain evidence
that active and significant operations in, or relation
to, the area of interest will be continued in the
future; and
Assessing the appropriateness of the disclosures
in the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2023, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In 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 have 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: http://www.auasb.gov.au/auditors_responsibilities/ar2.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 the directors’ report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of Aldoro Resources Limited, for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 September 2023
AIK KONG TING
Partner
A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
Corporate Governance Statement
The Board of Directors of Aldoro Resources Limited is responsible for the corporate governance of the Company. The
Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are
elected and accountable. The Board continuously reviews its governance practices to ensure they remain consistent
with the needs of the Company.
The Company complies with each of the recommendations set out in the Australian Securities Exchange Corporate
Governance Council’s Corporate Governance Principles and Recommendations 4th Edition (“the ASX Principles”). This
statement incorporates the disclosures required by the ASX Principles under the headings of the eight core principles.
All of these practices, unless otherwise stated, are in place.
The Company’s Corporate Governance Statement and policies can be
www.aldororesources.com.
found on
its website at
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A n n u a l R e p o r t | 3 0 J u n e 2 0 2 3
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this Annual Report
is as follows. The information is current as of 28 September 2023.
1. Fully paid ordinary shares
There is a total of 134,623,743 fully paid ordinary shares on issue which are listed on the ASX.
The number of holders of fully paid ordinary shares is 1,624.
•
•
• Holders of fully paid ordinary shares are entitled to participate in dividends and the proceeds on winding up of
the Company.
There are no preference shares on issue.
•
2. Distribution of fully paid ordinary shareholders is as follows:
The number of shareholders, by size of holding, is:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Total
Total holders
98
573
282
532
139
1,624
Units
54,774
1,638,049
2,294,473
17,708,256
112,928,191
134,623,743
% of Issued Capital
0.04%
1.22%
1.70%
13.15%
83.88%
100.00%
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those whose shareholding is valued at less than $500.
There are 704 shareholders who hold less than a marketable parcel of shares, amount to 1.39% of issued capital.
4. Substantial shareholders of ordinary fully paid shares
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
HONGKONG AUSINO INVESTMENT LIMITED
BNP PARIBAS NOMINEES PTY LTD
THE PIONEER DEVELOPMENT FUND (AUST) LIMITED
TELL CORPORATION PTY LTD
5. Restricted Securities
Holding Balance
% of Issued
Capital
14,338,013
12,386,602
7,435,989
7,395,000
10.65%
9.20%
5.52%
5.49%
There are no shares on issue that are subject to voluntary escrow restrictions or mandatory escrow restriction under
ASX Listing Rules Chapter 9.
6. Share buy-backs
There is currently no on-market buyback program for any of Aldoro Resources Limited’s listed securities.
7. Voting rights of Shareholders
All fully paid ordinary shareholders are entitled to vote at any meeting of the members of the Company and their
voting rights are on:
•
•
Show of hands – one vote per shareholders; and
Poll – one vote per fully paid ordinary share.
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ASX Additional Information
8. Tax Status
The Company is treated as a public company for taxation purposes.
9. Major Shareholders
The Top 20 largest fully paid ordinary shareholders together held 57.91% of the securities in this class and are listed
below:
Shareholders
Number
Held
Percentage
Rank
1
2
3
4
5
6
7
8
9
10
11 MS JIALING LIU
12
13
14
15
16
17
18 MRS TING YING
19
20
HONGKONG AUSINO INVESTMENT LIMITED
BNP PARIBAS NOMINEES PTY LTD
THE PIONEER DEVELOPMENT FUND (AUST) LIMITED
TELL CORPORATION PTY LTD
HONGKONG AUSINO INVESTMENT LIMITED
NIGHTFALL PTY LTD
RIMOYNE PTY LTD
PACKER ROAD NOMINEES PTY LTD
SQ1 GROUP PTY LTD
KALCON INVESTMENTS PTY LTD
PAPILLON HOLDINGS PTY LTD
KINGSTON NOMINEES PTY LTD
NIGHTFALL PTY LTD
ST BARNABAS INVESTMENTS PTY LTD
LILLARD PTY LTD
CJC & GC PTY LTD
JESHING PROPERTY MANAGEMENT PTY LTD
APERTUS CAPITAL PTY LTD
Total: Top 20 holders of ORDINARY FULLY PAID SHARES
10. Listed Options
There is no listed options on issue at the reporting date.
11. Unlisted Options
Number of Options
9,550,000
15,355,714
Exercise Price
$0.30
$0.25
Expiry Date
9 September 2024
9 September 2026
Holders
17
10
14,338,013
12,386,602
7,435,989
7,395,000
6,590,000
4,373,387
3,769,529
3,761,428
3,619,047
2,509,166
1,800,000
1,703,791
1,566,667
1,310,274
1,000,000
907,800
899,409
888,933
857,951
850,000
77,962,986
10.65%
9.20%
5.52%
5.49%
4.90%
3.25%
2.80%
2.79%
2.69%
1.86%
1.34%
1.27%
1.16%
0.97%
0.74%
0.67%
0.67%
0.66%
0.64%
0.63%
57.91%
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ASX Additional Information
12. Franking Credits
The Company has no franking credits.
13. Securities Exchange Listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian
Securities Exchange Limited under Security Code ARN.
14. Registered Office
Suite 11, 12, Level 2, 23 Railway Road
Subiaco WA 6008
Telephone: 08 6559 1792
Website: www.aldororesources.com
15. Company Secretary
Ms Sarah Smith
16. Share Registry
Automic Share Registry
Level 5, 191 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
17.Tenement Schedule
Mining tenement interests held at 28 September 2023 and their location
Western Australia
Tenement
E59/2238
E59/2258
E59/2431
E57/1017
P59/2137
E58/555
E58/571
Registered
Holder/Applicant
Gunex Pty Ltd
Gunex Pty Ltd
Altilium Metals Pty Ltd
Aldoro Resources Limited
Aldoro Resources Limited
Trafalgar Resources Pty Ltd
Mining Equities Pty Ltd
Permit Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Grant Date
(Application
Date)
7/04/2017
6/09/2017
8/02/2021
3/12/2015
26/03/2018
18/02/2022
10/10/2022
Expiry Date
6/04/2027
5/09/2027
7/02/2026
2/12/2025
25/03/2026
17/02/2027
10/09/2027
Blocks
(ha)
37
63
67
3
(195.84)
16
3
Area
(km2)
104.4
189.4
193.3
9.06
0.02
47.83
9.06
Interest
Contractual
Rights
100%
100%
100%
100%
100%
100%
100%
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