Alto Metals Limited
ABN 62 159 819 173
Annual Report 2024
CORPORATE DIRECTORY
Directors
Mark Connelly (Non-Executive Chairman)
Matthew Bowles (Managing Director and CEO)
Richard Monti (Non-Executive Director)
Company Secretary
Graeme Smith
Principal registered office
Suite 9,
12-14 Thelma Street,
WEST PERTH, WA 6005
Telephone 08 9381 2808
Website: www.altometals.com.au
Email: admin@altometals.com.au
Auditor
Pitcher Partners BA&A Pty Ltd
Level 11, 12-14 The Esplanade
Perth WA 6000
Telephone 08 9322 2022
Share Registry
Automic Company
Level 5, 191 St Georges Terrace
Perth WA 6000
Phone (within Australia): 1300 288 664
Phone (outside Australia): +61 2 9698 5414
Australian Securities Exchange
ASX code: AME
CONTENTS
REVIEW OF OPERATIONS
4
DIRECTORS’ REPORT
28
AUDITOR’S INDEPENDENCE DECLARATION
39
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
40
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
41
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
42
CONSOLIDATED STATEMENT OF CASH FLOWS
43
NOTES TO THE FINANCIAL STATEMENTS
44
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
63
DIRECTORS’ DECLARATION
64
INDEPENDENT AUDITOR’S REPORT
65
ADDITIONAL ASX INFORMATION
71
TENEMENT REPORT
73
REVIEW OF OPERATIONS
Review of Operations
About Alto Metals and the Sandstone Gold Project
Alto Metals Limited (the “Company”) and its controlled entity (the “Group) is a Western Australian based company
focused on the exploration and development of its 100% owned Sandstone Gold Project, located in the East
Murchison Mineral Field of Western Australia. The Sandstone Gold Project comprises over 740km2 of granted
tenure over the vast majority of the Archaean Sandstone Greenstone Belt (Figure 1).
Since acquiring the Sandstone Gold Project, Alto has defined an optimised, open-pit constrained mineral
resource estimate of 832,000oz gold at 1.5g/t, capturing over 80% of the unconstrained total MRE of 1.05Moz.
Alto is focused on growing these resources through continued exploration success and new discoveries.
Figure 1. Location of Sandstone Gold Project within the East Murchison Gold Field, WA
Granted Mining Lease
HACKS
OROYA
BULCHINA
BULL OAK
INDOMITABLE
VANGUARD
HAVILAH
LADYBIRD
LORD HENRY
LORD NELSON
ALPHA DOMAIN
Sandstone
Town
SANDSTONE GOLD PROJECT
17.6Mt at 1.5 g/t gold for
832,000oz gold
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Exploration Strategy
Alto remains focused on growing the current mineral resource base within the Alpha Domain, while continuing to
review and progress the multiple advanced brownfield prospects, as part of the Company’s longer-term strategy
to support a stand-alone operation at the Sandstone Gold Project.
Figure 2. Growth and development pipline within the Sandstone Gold Project
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Summary of Exploration Activity
During the year, the Group completed ~9,000m of reverse circulation and air-core drilling at Indomitable, Bull Oak
and other regional prospects.
Drilling at Indomitable continued to deliver high grade gold hits with shallow oxide gold mineralisation defined
over a 3.5km strike length remaining open. At Bull Oak drilling extended mineralisation outside the current
resource with step-out holes targeting extensions of mineralisation around the open pit returning shallow high
grade gold results of up to 38 g/t gold. Air-core drilling at Sandstone North successfully defined anomalous
shallow low-level gold mineralisation over ~500m coherent with the main north-south trending interpreted
structure and anomalous gold and arsenic in soil.
A maiden Exploration Target was reported for the Bull Oak deposit, comprising:
Grade (g/t Au)
Low
Grade (g/t Au)
High
Tonnes (Mt)
Low
Tonnes (Mt)
High
Contained Gold (oz)
Low
Contained Gold (oz)
High
1.0
1.3
4.6
8.8
205,000
295,000
The potential quantity and grade of the Exploration Target is conceptual in nature and, as such, there has been
insufficient exploration drilling conducted to estimate a Mineral Resource. At this stage it is uncertain if further
exploration drilling will result in the estimation of a Mineral Resource. The Exploration Target has been prepared
in accordance with the JORC Code (2012).
The exploration Target is exclusive of the current Bull Oak Mineral Resource Estimate (MRE), of 1.9Mt @ 1.1g/t
gold for 65,000 oz (0.5 g/t gold cut-off grade) constrained within a single A$2,500 pit shell.
Two new mining leases were granted during the year, one over the Bull Oak deposit and the other over
theexpanded Indomitable Camp to capture the Musketeer and Indomitable East deposits.
Figure 3: Location of total current mineral resources for Sandstone Gold Project
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Exploration highlights of the year
Growth
Bull Oak - Exploration Target
•
Maiden Exploration Target completed for the Bull Oak deposit, prepared in accordance with the JORC 2012
Code, comprising
Grade (g/t Au)
Low
Grade (g/t Au)
High
Tonnes (Mt)
Low
Tonnes (Mt)
High
Contained Gold (oz)
Low
Contained Gold (oz)
High
1.0
1.3
4.6
8.8
205,000
295,000
The potential quantity and grade of the Exploration Target is conceptual in nature and, as such, there has been
insufficient exploration drilling conducted to estimate a Mineral Resource. At this stage it is uncertain if further
exploration drilling will result in the estimation of a Mineral Resource. The Exploration Target has been prepared
in accordance with the JORC Code (2012).
•
The Bull Oak Exploration Target is exclusive of the current Bull Oak Mineral Resource Estimate (MRE), of 1.9Mt
@ 1.1g/t gold for 65,000 oz (0.5 g/t gold cut-off grade) constrained within a single A$2,500 pit shell.
Bull Oak - single pit scale potential
•
Drilling extends the high-grade Kohinoor North Reef outside the current resource with mineralisation
defined over 400m and remains open.
•
New assay results from step-out RC drilling at Bull Oak, targeting extensions of mineralisation around the
open pit, have delivered significant shallow high-grade gold intercepts outside the granodiorite including:
o
11m @ 4.1 g/t gold from 34m, incl; 1m @ 38.0 g/t gold from 34m
o
7m @ 4.7 g/t gold from 29m, incl; 1m @ 28.9 g/t gold from 32m
o
3m @ 10.2 g/t gold from 41m, incl; 1m @ 29.5 g/t gold from 41m
•
Results from a recent 80m step-out drill program intersected multiple stacked lodes including 55m @ 1.5 g/t
gold and 23m @ 1.1 g/t gold, extended mineralisation over 400m and remaining open.
Indomitable
•
High-grade gold results continue to highlight scale potential of +3km oxide footprint:
o
15m @ 3.1 g/t gold from 32m; incl. 8m @ 5.0 g/t gold from 32m; incl. 1m @ 22.2 g/t gold from 33m
o
15m @ 2.1 g/t gold from 72m; incl. 5m @ 5.4 g/t gold from 79m; and 1m @ 18.9 g/t gold from 83m
o
14m @ 2.6 g/t gold from 61m; incl. 2m @ 10.6 g/t gold from 61m; incl. 1m @ 18.8 g/t gold from 62m
o
11m @ 3.4 g/t gold from 57m; incl. 2m @ 12.6 g/t gold from 60m; and 1m @ 19.8 g/t gold from 60m
•
Extensional targets along the main NW trend and a parallel trend where historical drilling, outside the current
resource includes 15m @ 2.3 g/t gold (TVR939) from 35m and 10m @ 3.0 g/t gold from 50m (TVR905).
•
Extensional targets identified at Cessna, where previous results included 16m @ 7.2 g/t gold from 65m
Regional Exploration
Lightning – extensive shallow alluvial workings and limited historical drilling
•
Option agreement over granted mining lease M57/659 “Lightning” gold prospect, located only 3km west of
the 2.3Mt @ 2.0 g/t Au for 150,000oz Vanguard Camp
•
Extensive shallow alluvial gold workings where limited historical RAB drilling has returned 12m @ 13.5 g/t
gold including 1m @ 147 g/t gold.
•
To the north of the ML a one-kilometre long gold-in-soil anomaly (peak 242ppb) situated on a favourable
structural setting, has been defined which extends into E57/1033. This gold anomaly remains open and
untested by drilling.
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Vanguard – extensional targets and Vanguard North ‘look-a-like’
•
Review highlights high-grade extensional targets outside the current resources, including 2m @ 20.8 g/t
gold, 1m @ 23.7 g/t gold and 1m @ 22.0 g/t gold and remains open along the +2km long NW/SE corridor.
•
Priority 500m long gold-in lag-anomaly identified along trend from the high-grade Vanguard North deposit.
Bollinger
•
High-grade surface rock chip samples report assays up to 151 g/t gold and recent Alto drilling returned assays
of 25m @ 2.5 g/t gold from 6m, including 1m @ 16.4 g/t gold from 10m.
•
Review highlights extensional targets outside the current resources, incl. 2m @ 20.8 g/t gold, 1m @ 23.7 g/t
gold.
Hacks West – targeting Oroya and Hacks style repeats
•
Hacks West is a +16km2 target area immediately west of the Hacks reef considered prospective for
additional ‘repeat’ high-grade gold reefs.
•
Detailed structural interpretation and field work is continuing over the Hacks west area, including
geochemical sampling work. Additional geophysical work is currently being assessed, including detailed
ground gravity, to assist with improving the quality of the dataset and further assist in targeting for drill testing.
Sandstone North
•
First pass air-core (AC) drilling at the Sandstone North gold-in soils target was completed, with a total of 94
holes and 3,223 metres drilled to an average depth of approximately 34m.
•
The AC drilling, designed to test a shallow gold target defined from a recent soil sampling program, has
successfully defined anomalous shallow low-level gold mineralisation over ~500m which is coherent with the
main north-south trending interpreted structure. The drilling is 1.5 kilometres along strike to the north of the
historical high-grade drill intercepts highlighting that the structure remains mineralised.
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2024 activities
Alto is pleased to report on a year of further strong exploration results and the discovery of new target areas during
the year.
In line with Alto’s focused exploration approach to drive near-term resource growth, the Company has continued
ongoing exploration, geological review and field work over the 20km long NW/SE trending gold corridor within the
Alpha Domain which hosts the Lords, Vanguard, Indomitable and Bull Oak shallow gold deposits.
Figure 4. RC drilling at Bull Oak, Sandstone Gold Project.
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Exploration Target – Bull Oak
During the year Alto reported a maiden Exploration Target, highlighting the near-term resource growth potential
for the Bull Oak Gold Deposit, part of its Sandstone Gold Project in Western Australia. The Exploration Target
comprises:
Grade (g/t Au)
Low
Grade (g/t Au)
High
Tonnes (Mt)
Low
Tonnes (Mt)
High
Contained Gold
(oz) Low
Contained Gold
(oz) High
1.0
1.3
4.6
8.8
205,000
295,000
The potential quantity and grade of the Exploration Target is conceptual in nature and, as such, there has been insufficient
exploration drilling conducted to estimate a Mineral Resource. At this stage it is uncertain if further exploration drilling will
result in the estimation of a Mineral Resource. The Exploration Target has been prepared in accordance with the JORC Code
(2012).
Note: The Exploration Target is exclusive of the April 2023 Mineral Resource Estimate released for the Bull Oak
Gold Deposit of 1.9Mt at 1.1 g/t Au for 65,000oz gold (0.5 g/t gold cut-off grade).
Figure 5: Bull Oak Exploration Target, showing existing MRE block model and 2023 optimised pit shell and
multiple stacked mineralisation lodes modelled (grey).
Additional growth at Bull Oak
The Exploration Target has been reported to a maximum depth of 260m below surface. Alto has carried out
sensitivity testing and compared the Exploration Target with several recently published Exploration Targets of
similar geology and mineralisation, which reported mineralisation up to 350m below surface. Whilst there has
been insufficient exploration to estimate an updated Mineral Resource and it is uncertain if further exploration will
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result in the estimation of an updated Mineral Resource, Alto considers there is reasonable prospect that the
mineralisation, if converted to a mineral resource, could be economically mined within a reasonable time frame.
The Exploration Target is guided by the limited drilling and does not place and upper limit on the Bull Oak
Gold Deposit and the Company considers further exploration is likely to demonstrate significant potential
for further growth.
The Company considers the Exploration Target has been calculated on a conservative basis and is well supported
by drill intercepts and the continuity of mineralisation observed throughout the deposit.
In adopting this approach, the following have not been included in the current Exploration Target due to lack
of drilling, but are considered opportunities which represent further growth:
•
potential extensions of the gold mineralisation intercepted in SRC971 (55m @ 1.5 g/t gold) on the contact
of the granodiorite and banded-iron formation (BIF);
•
drilling has demonstrated that mineralisation extends outside the granodiorite and into the mafic rocks
however, the deeper portion of the Exploration Target is constrained to the current known boundary of the
granodiorite;
•
potential extensions of the shallow high-grade reefs (Kohinoor North, Bull Oak and Faugh-a-Ballah);
•
potential extensions of high-grade zone of mineralisation where the BIF and the reefs intersect the
granodiorite; and
•
mineralisation remains open at depth below the projected Exploration Target depth of 260m.
Figure 6: High-grade mineralisation, interpreted as extensions of the shallow high-grade reefs, outside the ET.
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Bull Oak - drilling extends gold mineralisation
During the year the Company released new assay results from an initial 18 hole RC program at Bull Oak,
successfully extended shallow high-grade gold mineralisation both along strike and below the historic
mined open-pit.
Multiple shallow high-grade gold intersections were identified with mineralisation associated with banded-
iron-formation. Significant assay results include:
• 11m @ 4.1 g/t gold from 34m, including; 1m @ 38.0 g/t gold from 34m(SRC985)
• 7m @ 4.7 g/t gold from 29m, including; 1m @ 28.9 g/t gold from 32m(SRC983)
• 3m @ 10.2 g/t gold from 41m, including; 1m @ 29.5 g/t gold from 41m(SRC981)
• 10m @ 1.5 g/t gold from 19m, including; 4m @ 3.1 g/t gold from 24m(SRC973)
Figure 7: Plan view of Bull Oak Mine showing historical and Alto Metals drilling.
Four deeper RC holes intersected numerous mineralised intervals of within the granodiorite and the surrounding
country rock. Significant results included
o
55m @ 1.5 g/t gold from 127m, incl.
24m @ 2.1 g/t gold from 148m, incl.
1m @ 17.8 g/t gold from 151m, and.
1m @ 21.1 g/t gold from 181m
within an overall intercept of 172m @ 0.64 g/t gold from 44m (SRC971) - ended in mineralisation;
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o
23m @ 1.1 g/t gold from 147m, incl.
8m @ 2.1 g/t gold from 157m, incl.
1m @ 8.0 g/t gold from 164m
within an overall intercept of 227m @ 0.44 g/t gold from 26m (SRC969) - ended in mineralisation;
SRC971 was drilled in the north-east part of the deposit near the interpreted margin of the granodiorite. The
drilling passed through the oxide zone and intersected mafic rocks and a wide interval of banded-iron-formation
(BIF) intermixed with granodiorite, interpreted to be the contact of the Bull Oak intrusive (refer to Figure 8).
SRC969 was drilled in the south-west part of the Bull Oak granodiorite targeting mineralisation at depth below the
current mineral resource, and was a step-out hole approximately 200m along strike from previous deep drill hole
SRC360 which intersected multiple stacked lodes in an overall intercept of 260m @ 0.41 g/t gold from 36m
(including a high grade intercept of up to 14.3 g/t gold), with the hole ending in mineralisation. SRC969 also
intersected multiple stacked lodes and ended in mineralisation.
Figure 8: Drill section at Bull Oak looking north-west, showing two of the completed deeper drill holes
(SRC969 and SRC971) to test extensions of the multiple stacked lodes below the open pit and current
mineral resource.
Drilling has confirmed that gold mineralisation is not constrained to the granodiorite and extends into the
surrounding rocks. Assay results from SRC971 at the granodiorite-BIF contact have confirmed that this is a
favourable geological position for high-grade gold mineralisation. Historical surface geological mapping and
shallow drilling defined multiple east-west oriented, sub-vertical BIF units that have been intruded by the
granodiorite that remain untested by drilling at depth. These target areas represent an exciting opportunity to
potentially define further high-grade mineralisation, additional to the multiple stacked lodes within the
granodiorite, to be included in future mineral resource updates.
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Figure 9: Oblique drone image over the open-pit Bull Oak Mine, mined by Herald Resource Ltd.
Figure 10. RC drilling at Bull Oak, Sandstone Gold Project.
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Additional near-mine, felsic intrusive gold targets
The Bull Oak, Middle and Worker granites are felsic intrusions evident in the airborne magnetics. Review of detailed
surface geological mapping and airborne magnetics has identified numerous additional interpreted felsic intrusive
gold targets within the area, which are considered significant targets for additional large tonnage, moderate grade
mineralisation. These areas are characterised by low magnetic response, no outcrop and have not been tested by
drilling (Figure 11).
Figure 11: Regional plan view of the historic Hancocks Mining Centre. Background image: Magnetic
TMI_RTP_1VD
Indomitable
During the year the final assay results were received from a 5,000m RC drilling program designed to follow up on
interpreted high-grade structures and test strike extensions at Indomitable. These drilling results successfully
intersected high-grade gold mineralisation in both near surface oxide and in fresh rock at depth (~250m below
surface).
Significant results included:
Oxide
o
15m @ 3.1 g/t gold from 32m; incl. 8m @ 5.0 g/t gold from 32m; incl. 1m @ 22.2 g/t gold from 33m
o
15m @ 2.1 g/t gold from 72m; incl. 5m @ 5.4 g/t gold from 79m; and 1m @ 18.9 g/t gold from 83m
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o
16m @ 1.2 g/t gold from 44m; incl. 1m @ 9.8 g/t gold from 46m
o
14m @ 2.6 g/t gold from 61m; incl. 2m @ 10.6 g/t gold from 61m; incl. 1m @ 18.8 g/t gold from 62m
o
11m @ 3.4 g/t gold from 57m; incl. 2m @ 12.6 g/t gold from 60m; and 1m @ 19.8 g/t gold from 60m
o
14m @ 1.1 g/t gold from 60m; incl. 1m @ 5.6 g/t gold from 64m
o
12m @ 1.0 g/t gold from 34m; incl. 3m @ 2.4 g/t gold from 41m
Fresh
o
11m @ 1.0 g/t gold from 159m; incl. 2m @ 2.7 g/t gold from 159m
o
6m @ 2.2 g/t gold from 193m; incl. 1m @ 6.4 g/t gold from 193m
o
1m @ 11.3 g/t gold from 237m; and
4m @ 2.1 g/t gold from 283m within a broad ‘halo’ of 34m @ 0.6 g/t gold from 275m
o
3m @ 4.9 g/t gold from 93m; incl. 1m @ 12.9 g/t gold from 93m
o
2m @ 4.2 g/t gold from 118m; incl. 1m @ 7.6 g/t gold from 119m
Holes SRC944 and SRC959 drilled in the northwest of the optimized pit shells as well as SRC942 and SRC943
drilled within the main optimized pit shells, intersected shallow high grade oxide gold mineralisation (including
15m @ 3.1 g/t gold from 32m and 16m @ 1.2 g/t gold from 44m) and multiple stacked, shallow dipping zones of
gold mineralisation within fresh rock at depth.
Results continue to highlight higher grade mineralisation is typically observed where these shallow, westerly
dipping interpreted thrust faults intersect the steeply-dipping structures, as shown in SRC663 (44m @ 2.0 g/t gold
from 59m).
Indomitable – extensional targets of a growing oxide footprint
The Indomitable Camp is hosted within the +20km NW/SE Indomitable/Vanguard/Havilah gold corridor that forms
part of the priority Alpha Domain target area. The Mineral Resource Estimate for Indomitable Camp is 5.4Mt at 1.2
g/t gold for 210,000oz, reported at a 0.5 g/t gold cut-off, constrained within A$2,500 pit shells.
Mineralisation at the Indomitable Camp is currently defined over 3.5km strike length and remains open in all
directions.
Drilling to date has defined a large oxide footprint at Indomitable, with deeper drilling intersecting gold
mineralisation in fresh rock. Results continue to highlight the significance of the interpreted structural controls
of both the steeply-dipping structures and shallow, westerly dipping thrust faults. Higher grade mineralisation is
typically observed where these shallow, multiple stacked thrust faults intersect the steeply-dipping structures,
as observed in SRC663 (44m @ 2.0 g/t gold from 59m, ASX release 14 July, 2022).
The Company believes the extent of shallow oxide mineralisation at Indomitable Camp, is an indication of
a potentially much larger gold system at depth.
Following a review of the drilling results from extensional drilling at Indomitable from late last year, further
structural interpretation and a review of historical drilling, Alto has identified a number of key areas for further
drilling and exploration to drive potential resource growth, outlined in Figure 12 below.
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Figure 12: Plan view of Indomitable Camp showing the near-term growth targets along the main, highlighted
from the review of previous and historical drilling.
Sandstone North – structural target
First pass air-core (AC) drilling at the Sandstone North gold-in soils target has been completed, with a total of 94
holes and 3,223 metres drilled to an average depth of approximately 34m.
The AC drilling, designed to test a shallow gold target defined from a recent soil sampling program, has
successfully defined anomalous shallow low-level gold mineralisation over ~500m which is coherent with the
main north-south trending interpreted structure. The drilling is 1.5 kilometres along strike to the north of the
historical high-grade drill intercepts highlighting that the structure remains mineralised.
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Figure 13: Oblique section of Indomitable Camp showing g/t*m drill results with recent pierce points showing the broad zones of mineralisation
and the potential high-grade shoots.
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Bollinger
The Bollinger prospect is located 1.5km north of the Indomitable camp and midway between Indomitable and
Bull Oak. The prospect was identified from coarse fraction soil sampling and field geological mapping by
Pancontinental Mining Limited (PML) in the 1980s. The area is associated with a folded sequence of mafic-
ultramafic rocks with intercalated banded-iron-formation and possible porphyry intrusives.
Figure 14: Location of Bollinger Prospect.
At Bollinger 1, a narrow high-grade quartz vein trending 015 degrees is exposed at surface. Detailed sampling of the
vein selvage returned assays up to 151 g/t gold, interpreted to be oxidized massive sulphide selvage. Sampling of
the quartz material returned assays up to 6.4 g/t gold and sampling of a 2m channel across the vein returned
assays of up to 1.5 g/t gold. PML completed a shallow RAB drilling program and followed up with three RC holes.
The fieldwork and surface sampling was undertaken to validate the reported historical results, prior to any further
drilling or exploration.
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Significant historical drilling results from Bollinger 1 include:
o
18m @ 1.4 g/t gold from 22m, incl. 6m @ 2.6 g/t gold from 22m (SNRC003)
o
12m @ 1.6 g/t gold from 8m, incl. 4m @ 3.0 g/t gold from 12m (SNR107)
o
6m @ 2.2 g/t gold from 40m (SNR106) (ended in mineralisation)
Figure 15: Bollinger Prospects.
At Bollinger 2, mineralisation is interpreted to be associated with a mafic-ultramafic contact and banded-iron-
formation with possible porphyry intrusives.
Significant historical drilling results from Bollinger 2 include;
o
28m @ 2.4 g/t gold from 4m, incl. 12m @ 4.7 g/t gold from 16m (SNR157)
o
22m @ 1.2 g/t gold from 24m, incl. 4m @ 3.8 g/t gold from 28m (SNR067)
o
20m @ 1.1 g/t gold from 12m, incl. 4m @ 1.7 g/t gold from 28m (SNR073)
o
12m @ 1.2 g/t gold from 28m, incl. 4m @ 1.7 g/t gold from 28m (SNR163)
o
12m @ 1.1 g/t gold from 20m, incl. 4m @ 1.9 g/t gold from 28m (SNR160)
In 2020, Alto completed one RC drill hole to verify the significant historical drill intersections beneath SNR157 and
SNRC5, with results including;
o
25m @ 2.5 g/t gold from 6m, incl. 1m @ 16.4 g/t gold from 10m;
o
12m @ 1.3 g/t gold from 55m, incl. 1m @ 4.5 g/t gold from 66m (SRC200)
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Hacks West – targeting Oroya and Hacks style repeats
Hacks West is a +16km2 target area immediately west of the Hacks reef. The target area hosts numerous old
workings and historic shafts, which predominantly are north-south striking, yet surprisingly has had limited modern
exploration in terms of surface geochemistry and drilling.
Neither the north-south striking Oroya or Hacks Reefs have an observable signature in the magnetic data in terms
of offset of magnetic sediment/BIF horizons. However, the western half of the target area has more obvious
stratigraphic disruption in terms of demagnetisation and offsets as per the interpreted structures shown in Figure
16. There is also potential for important E-W to ENE-striking structures to host gold mineralization.
The Hacks West target area is considered prospective for additional ‘repeat’ high-grade gold reefs, which may
link to the regional Youanmi shear corridor.
Figure 16. Oroya, Hacks and Hacks West Regional Target Area.
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Lightning
During the year, Alto announced it had signed an Option agreement to acquire granted mining lease M57/659
“Lightning” gold prospect, located only 3km west of the 2.3Mt @ 2.0 g/t Au for 150,000oz Vanguard Camp.
At Lightning, extensive shallow alluvial gold workings have been undertaken historically by various parties over the,
however the primary source of mineralisation has not been identified.
Figure 17. Location of M57/659 “Lightning”, Sandstone Gold Project.
Limited historical RAB drilling at Lightning prospect, has intersected shallow gold mineralisation, including:
o
12m @ 13.5 g/t gold from 25m, incl. 1m @ 147.0 g/t gold from 25m and 1m @ 7.9 g/t gold from 36m (LR002)
o
6m @ 1.2 g/t gold from 26m, incl.
1m @ 4.5 g/t gold from 26m (LR033)
o
5m @ 1.2 g/t gold from 42m, incl.
1m @ 3.5 g/t gold from 46m (LWR129)
Ongoing compilation and review of historical data identified significant rock chip samples of banded-iron-
formation, chert, quartz-veining and goethitic material from within the mining lease.
A recent visit was undertaken by Alto to carry out geological reconnaissance and additional selective rock chip
sampling within the mining lease. Significant rock chip sampling results include assays up to 9.7 g/t gold.
To the north of the ML a one-kilometre long gold-in-soil anomaly (peak 242ppb) situated on a favourable structural
setting, has been defined which extends into E57/1033. This gold anomaly remains open and untested by drilling.
An extensional and infill soil sampling of this anomaly is currently underway to define targets for upcoming RC
drilling.
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Multiple regional targets across the entire Sandstone Gold Project. A systematic approach.
Alto’s immediate exploration strategy remains focused on discoveries and resource growth within the Alpha
Domain which hosts the Lords corridor, Vanguard, Indomitable and Havilah. Based on the success of the
systematic approach to exploration to date, Alto is continuing to review the multiple other early greenfield and
advanced brownfield targets sit within the ~740km2 Sandstone Gold Project, as part of the Company’s longer
term strategy to advance the overall project pipeline to support a stand-alone operation.
Figure 18. Multiple regional targets within the Sandstone Gold Project.
Mining Leases granted at Bull Oak and Indomitable Camps
New Mining Lease M57/665 – Indomitable Camp
The Company received notification from the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS)
that its new mining lease applications over the Indomitable (M57/665) and Bull Oak (M57/663) Camps were
granted. The mining lease applications were submitted based on Mineralisation Reports and Supporting Document
Statements prepared by Alto’s in-house technical team, highlighting gold mineralisation within each new mining
lease.
The new granted mining lease surrounds existing mining lease M57/646 and further secures Alto’s defined mineral
resources and interpreted extensions at Indomitable East and Musketeer. The new ML also covers the significant
gold mineralisation intersected in drilling at the Cessna prospect, which the Company anticipates may potentially
convert to a mineral resource with further drilling.
Additional priority targets also identified within the expanded mining lease include a surface geochemical anomaly
coincident with gold nuggets recovered from prospecting activity and numerous historical drilling intercepts that
require follow-up drilling. Targets outside the current mining lease include the Bollinger prospect, located two
kilometres along trend to the north, where assays are currently pending from recently completed field work.
REVIEW OF OPERATIONS
Alto Metals Limited | 2024 Annual Report
24
Figure 19: New granted mining lease M57/665 and existing granted mining lease M57/646 over the Indomitable
Camp showing existing block models of mineral resources and mineralisation.
REVIEW OF OPERATIONS
Alto Metals Limited | 2024 Annual Report
25
New Mining Lease M57/663 – Bull Oak Camp
The new mining lease covers the current Bull Oak Mineral Resource of 1.9 Mt at 1.1 g/t gold for 65,000oz and the
current Exploration Target of 4.6Mt to 8.8 Mt at 1.0 g/t gold to 1.3 g/t gold for 205,000oz – 295,000oz (Refer to ASX
Announcements 3 April 2023 & 19 June 2024).
The new ML also covers extensive historic workings and additional felsic intrusions in the surrounding area, which
the Company considers are significant targets for further potential resource growth.
Figure 20: New granted mining lease M57/663 over the Bull Oak Camp showing historical drilling and workings.
REVIEW OF OPERATIONS
Alto Metals Limited | 2024 Annual Report
26
Tables 1 & 2: Optimised and Pit Constrained Mineral Resource Estimate for Sandstone Gold Project
Table 1: Total Mineral Resource Estimate for Sandstone Gold Project
Mineral Resource Estimate for the Sandstone Gold Project as at March 2023
Classification
Cut-off grade
(g/t gold)
Tonnes (Mt)
Grade (g/t gold)
Contained gold (koz)
Total Indicated
0.5
4.3
1.6
226
Total Inferred
0.5
13.3
1.4
606
TOTAL
0.5
17.6
1.5
832
Updated Mineral Resources reported at a cut-off grade of 0.5 g/t gold. Mineral Resources for Indomitable are reported at a cut-off grade of 0.3
g/t gold. Minor discrepancies may occur due to rounding of appropriate significant figures.
Table 2: Total Mineral Resource Estimate for Sandstone Gold Project (by deposit)
Updated Mineral Resources reported at a cut-off grade of 0.5 g/t gold and are constrained within a A$2,500/oz optimised pit shells based on mining parameters and
operating costs typical for Australian open pit extraction deposits of a similar scale and geology. Mineral Resources for Lord Henry, Vanguard Camp, Havilah Camp,
Piper, Tiger Moth and Ladybird deposits have not been updated. Minor discrepancies may occur due to rounding of appropriate significant figures.
Table 3: Unconstrained Mineral Resources for Sandstone Gold Project, March 2023
Unconstrained Mineral Resources for the Sandstone Gold Project as at March 2023
Classification
Cut-off grade
(g/t gold)
Tonnes (Mt)
Grade (g/t gold)
Contained gold (koz)
Total Indicated
0.5
4.3
1.6
227
Total Inferred
0.5
19.2
1.4
819
TOTAL
0.5
23.5
1.4
1,046
Unconstrained Mineral Resources reported at a cut-off grade of 0.5 g/t gold. Minor discrepancies may occur due to rounding of significant
figures.
The references in this announcement to Mineral Resource estimates for the Sandstone Gold Project were reported in accordance with Listing Rule 5.8 in the following
announcements:
(a): Lord Nelson, Indomitable, Bull Oak release: “Significant increase in shallow gold resources at Sandstone Gold Project” 3 April 2023;
(b) Vanguard Camp, Havilah Camp, Lord Henry: release titled: "Sandstone Mineral Resource increases to 635,000oz gold" 23 March 2022;
(c): Indomitable Camp (Piper & Tiger Moth deposits): release "Maiden Gold Resource at Indomitable & Vanguard Camps, Sandstone WA" 25 Sep 2018; and
(d): Ladybird: release “Alto increases Total Mineral Resource Estimate to 290,000oz, Sandstone Gold Project” 11 June 2019.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement
noted above and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the previous market announcement
continue to apply and have not materially changed.
Prospect
Cut-Off
Tonnes
(Mt)
Grade
(g/t)
Gold Ounces
(koz)
Tonnes
(Mt)
Grade
(g/t)
Gold Ounces
(koz)
Tonnes
(Mt)
Grade
(g/t)
Gold Ounces
(koz)
Lord Nelson
0.5
1.5
2.1
100
3.5
1.4
163
5.0
1.6
263
Lord Henry
0.5
1.6
1.5
77
0.3
1.2
13
1.9
1.4
90
Havilah
0.5
0.9
1.4
38
0.9
1.4
38
Maninga Marley
0.5
0.1
2.6
8
0.1
2.6
8
Havilah Camp
0.5
1
1.5
46
1.0
1.5
46
Vanguard
0.5
0.4
2
26
1.5
1.6
77
1.9
1.7
103
Vanguard North
0.5
0.4
3.8
47
0.4
3.8
47
Vanguard Camp
0.5
0.4
2
26
1.9
1.6
124
2.3
2.0
150
Musketeer
0.5
0.8
1.5
40
0.8
1.5
40
Indomitable
0.5
0.8
0.9
23
2.2
1.2
81
3.0
1.1
104
Indomitable East
0.5
1
1.1
34
1.0
1.1
34
Tiger Moth
0.5
0.5
1.7
28
0.5
1.7
28
Piper
0.5
0.1
1
4
0.1
1.0
4
Indomitable Camp
0.5
0.8
0.9
23
4.6
1.1
187
5.4
1.2
210
Bull Oak
0.5
1.9
1.1
65
1.9
1.1
65
Ladybird
0.5
0.1
1.9
8
0.1
1.9
8
Total
0.5
4.3
1.6
226
13.3
1.4
606
17.6
1.5
832
Mineral Resource Estimate for the Sandstone Project - March 2023
Indicated
Inferred
TOTAL
REVIEW OF OPERATIONS
Alto Metals Limited | 2024 Annual Report
27
Forward-Looking Statements
This release may include forward-looking statements. Forward-looking statements may generally be identified by
the use of forward-looking verbs such as expects, anticipates, believes, plans, projects, intends, estimates,
envisages, potential, possible, strategy, goals, objectives, or variations thereof or stating that certain actions,
events or results may, could, would, might or will be taken, occur or be achieved, or the negative of any of these
terms and similar expressions. which are only predictions and are subject to risks, uncertainties and assumptions
which are outside the control of Alto Metals Limited. Actual values, results or events may be materially different to
those expressed or implied in this release. Given these uncertainties, recipients are cautioned not to place reliance
on forward-looking statements. Any forward-looking statements in this release speak only at the date of issue.
Subject to any continuing obligations under applicable law and the ASX Listing Rules, Alto Metals Limited does not
undertake any obligation to update or revise any information or any of the forward-looking statements in this
release or any changes in events, conditions or circumstances on which any such forward-looking statement is
based.
Competent Persons Statement
The information in this Report that relates to current and historical Exploration Results is based on information
compiled by Mr Michael Kammermann, who is an employee and shareholder of Alto Metals Ltd, and he is also
entitled to participate in Alto's Employee Incentive Scheme. Mr Kammermann is a Member of the Australian
Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types
of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in
the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr Kammermann consents to the inclusion in the report of the
matters based on the information in the context in which it appears.
Exploration Results
The references in this announcement to Exploration Results for the Sandstone Gold Project were reported in
accordance with Listing Rule 5.7 in previous announcements.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the previous market announcements.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
28
Your Directors submit their report together with the annual financial statements of Alto Metals Limited (the
“Company”) and the entity it controlled (together “the Group”) for the year ended 30 June 2024 and the auditor’s
review report thereon.
Directors
The names of the Directors who held office during or since the end of the year are:
Mr Mark Connelly
Mr Richard Monti
Mr Matthew Bowles
Directors were in office for the entire year unless otherwise stated.
Information on Directors
Mark Connelly (Non-Executive Chairman)
Mark Connelly has a proven track record in the mining industry and over thirty years’ experience
In recent years he was the CEO of Papillon Resources and Adamus Resources. Both companies were acquired in
by way of takeovers with Papillon valued at over USD570m. Papillon was developing the Fekola gold deposit in Mali
and Adamus Resources was a gold production company based in Ghana.
Prior to this Mark Connelly worked held senior management roles at Inmet Mining and Newmont Mining and also
as COO at Endeavour Mining following its acquisition of Adamus Resources.
Mr Connelly is a Director of Astral Resources NL, Tesoro Gold Ltd, Calidus Resources Limited, Nickel Search
Limited, Omnia Metals Limited, BeMetals Corp Inc, Warriedar Resources Limited and Renegade Exploration
Limited.
Within the last three years Mr Connelly has been a director of Barton Gold (January 2021 to April 2022), Emmerson
plc (July 2018 to June 2021), Tao Commodities Limited (May 2018 to May 2021), Primero Group (April 2018 to
February 2021), Oklo Resources Limited (July 2019 - May 2022), Chesser Resources Limited (Jul 2020 - Sept 2023).
Mr Connelly has the following interest in shares and rights in the Company as at the date of this report – 500,000
ordinary shares and 3,000,000 Performance Rights expiring 31 December 2024.
Richard Monti (Non-Executive Director)
Mr Monti is a geologist with a successful career of over 30 years in the international mineral resource industry,
resulting in broad industry knowledge and strong strategic planning capabilities. He has first-hand working
knowledge of all aspects of the industry. He has been a Director on 15 ASX and TSX listed companies, covering
exploration and mining activities. Directorships include four as Chairman and sitting on numerous sub-
committees. Mr Monti has held roles at several international and Australian companies including Anaconda Nickel,
Azimuth Resources Limited, The North Group and The Normandy Group. He was a founding Director of Azimuth
Resources and the architect of the Company’s eventual take over for A$190m in 2013. Mr Monti was Principal of
Ventnor Capital from 2005 to 2010, a corporate advisory business supplying advice across the commercial and
corporate spectrum to junior and mid-size companies.
Directorships held in other listed entities: Boab Metals Ltd, Caravel Minerals Ltd and Nickel X Limited.
Within the last three years Mr Monti has been a director of Black Dragon Gold Corp (retired 11 August 2021), Zinc
of Ireland NL (May 2018 – March 2023).
Mr Monti has the following interest in shares and rights in the Company as at the date of this report – 8,542,735
ordinary shares and 3,000,000 Performance Rights expiring 31 December 2024.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
29
Matthew Bowles (Managing Director and Chief Executive Officer)
Mr Bowles is a senior corporate finance executive with extensive corporate advisory, private equity and capital
markets experience within the resources sector. He has a depth of experience in domestic and cross border
financing, joint venture and M&A transactions in Africa, the Americas and Australia.
Mr Bowles was previously the Chief Development Officer for a West African focused gold company. He
commenced his career with Rio Tinto where he worked for nine years in various corporate and commercial roles,
before moving to London to work in resources banking and finance. Since his return to Australia he has held senior
roles with global advisory firms focused on the resources sector.
Directorships held in other listed entities: Nil.
Mr Monti has the following interest in shares and rights in the Company as at the date of this report – 9,750,000
ordinary shares and 6,000,000 Performance Rights expiring 31 December 2024.
Company Secretary
Graeme Smith is a corporate governance and finance professional with over 30 years’ experience in accounting
and company administration. He is a Fellow of the Australian Society of Certified Practicing Accountants, the
Chartered Governance Institute and the Governance Institute of Australia. He is the principal of Wembley
Corporate which provides Company Secretarial, CFO, and Corporate Governance services to public companies.
Principal Activities
The Group is a gold explorer holding a significant land position in the Archaean Sandstone Goldfield approximately
600km north of Perth in the East Murchison Mineral Field of Western Australia.
The Sandstone Gold Project is an advanced exploration project which comprises both brown-field and green-field
exploration portfolio. The current mineral resource base of the Sandstone Gold Project consists of 17.6Mt at 1.5 g/t
Au for 832,000oz of gold (Indicated and Inferred, JORC 2012) capturing over 80% of the unconstrained total MRE of
1.05Moz. Refer to Mineral Resource Table.
Alto’s immediate focus is to rapidly expand the current mineral resources with further exploration and step out and
infill drilling. The Priority targets are shallow gold deposits that could be profitably mined through establishment
of standalone oxide and primary gold mining operations at Sandstone.
Refer to the Operations Report for details of the Group’s exploration activities during the year
Operating Results
The consolidated loss of the Group after providing for income tax amounted to $1,896,749 (2023: $2,528,144).
Financial Position
The net assets of the Group at 30 June 2024 are $32,225,682 (2023: $28,735,880). The cash and cash equivalent of
the Group at 30 June 2024 are $1,916,608 (2023: 1,075,068).
Risk Management
The Board is responsible for ensuring that risks, and also opportunities, are identified on a timely basis and that
activities are aligned with the risks and opportunities identified by the Board. The Board believes that it is crucial
for all Board members to be a part of this process, and as such the Board has not established a separate risk
management committee. The Board has a number of mechanisms in place to ensure that management's
objectives and activities are aligned with the risks identified by the Board. These include the following:
Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders’
needs and manage business risk.
Implementation of Board approved operating plans and budgets and Board monitoring of progress against
these budgets.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
30
Exploration Risk
Mineral exploration and development are high-risk undertakings, and there is no assurance that exploration of
the tenements will result in the discovery of an economic deposit. Even if an apparently viable deposit is identified
there is no guarantee that it can be economically exploited.
The future exploration activities of the Group may be affected by a range of factors including geological
conditions, limitations on activities due to permitting requirements, availability of appropriate exploration
equipment, exploration costs, seasonal weather patterns, unanticipated operational and technical difficulties,
industrial and environmental accidents and many other factors beyond the control of the Group.
Material Business Risks
The objective of the Company is to create long-term shareholder value through the discovery, development, and
acquisition of technically and economically viable mineral deposits. To date, the Company has not commenced
production of any minerals, The material business risks faced by the Company that could have an effect on the
Company’s future prospects, and how the Company manages these risks include:
The Company may not identify an economic deposit
Despite positive exploration results on a number of projects, current and potential investors should understand
that mineral exploration, development and mining are high-risk enterprises, only occasionally providing high
rewards. The success of the Company also depends, among other things on successful exploration and/or
acquisition of resources, securing and maintaining title to tenements and consents, in accordance with budgets
and successful management of Alto’s operations. Exploration and mining activities may also be hampered by force
majeure circumstances, land claims and unforeseen mining problems. There is no assurance that exploration and
development of the mineral interests owned by the Company, or any other projects that may be acquired in the
future, will result in the discovery of mineral deposits which are capable of being exploited economically. Even if
an apparently viable deposit is identified, there is no guarantee that it can be profitably exploited. If such
commercial viability is never attained, the Company may seek to transfer its property interests or otherwise realise
value, or the Company may even be required to abandon its business and fail as a “going concern”.
The Company’s exploration activities being delayed due to lack of available equipment and services
The exploration activities of the Company requires the involvement of a number of third parties, including drilling
contractors, assay laboratories, consultants, other contractors, and suppliers. Demand for drilling equipment and
exploration related services in Western Australia fluctuates and can result in higher exploration costs, delays in
completing the Company’s exploration activities, and delays in the assessment and reporting of the results. Should
there continue to be high demand for exploration equipment and related services continue, there may be delays in
undertaking exploration activities, which may result in increased exploration costs and/or increased working
capital requirements for the Company which may have a material impact on the Company’s operations and
performance.
The Company’s operations will require further capital
The exploration and any development of the Company’s exploration properties will require substantial additional
financing. Failure to obtain sufficient financing may result in delaying, or the indefinite postponement of exploration
and development of the Company’s properties or even a loss of property interest. There can be no assurance that
additional capital or other types of financing will be available if needed or that, if available, the terms of such
financing will be favourable to the Company.
The Company may be adversely affected by fluctuations in commodity prices
The price of commodities fluctuates widely and are affected by numerous factors beyond the control of the
Company. Future production, if any, from the Company’s mineral properties will depend on the price of
commodities being adequate to make these properties economic. The Company currently does not engage in any
hedging or derivative transactions to manage commodity price risk. As the Company’s operations change, this
policy will be reviewed periodically.
Global financial conditions may adversely affect the Company’s growth and profitability
Many industries, including the mineral resource industry, are impacted by financial; market conditions. Some of
the key impacts include contraction in credit markets resulting in a widening of credit risk, devaluations and high
volatility in global equity markets, commodity prices, foreign exchange fluctuations and precious metal markets,
and a lack of market liquidity. Due to the current nature of the Company’s activities, a slowdown in financial
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
31
markets or other economic conditions may adversely affect the Company’s growth and ability to finance its
activities.
Significant Changes in State of Affairs
There were no significant changes in the state of affairs of the Group other than as referred to elsewhere in this
report and in the financial statements and notes attached thereto.
Share Placement
During the year, Alto undertook the following share placements:
•
A share placement totalling 101.4 million shares raising $5.3 million;
•
Director placement of 1.9 million shares raising $100,000.
•
5.4 million shares were issued through the conversion of performance rights and
•
8.1 million shares were issued for the performance of services worth $420,000
Significant Events After the Reporting Date
On 1 August 2024, Alto announced that it had entered into a Scheme Implementation Deed with Brightstar under
the terms of which Brightstar will acquire all of the issued shares in Alto by way of a Court approved scheme of
arrangement between Alto and its shareholders (Scheme), for consideration of four (4) New Brightstar Shares for
every one (1) Alto Share held by a Scheme Shareholder. As at the date of this report, the proposed scheme valued
Alto shares at $0.068 each and the Company as a whole at $49 million.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or
may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial years.
Likely Developments and Expected Results
The Group expects to maintain the present status and level of operations and hence there are no likely
developments in the Group's operations.
Environmental Regulation and Performance
The Group is subject to significant environmental regulation in respect to its exploration activities. The Group
aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and
is in compliance with all environmental legislation. The Directors of the Company are not aware of any breach of
environmental legislation for the year under review.
Dividends Paid or Recommended
No dividend has been paid or recommended.
Meetings of Directors
During the financial period, the following meetings of Directors were held. Attendances by each Director during
the period were as follows:
Directors' Meetings
Number eligible
to attend
Number
attended
M Connelly
4
4
M Bowles
4
4
R Monti
4
4
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
32
Performance Rights
At the date of this report, the following performance rights were on issue over ordinary shares of the Company.
Date performance rights granted
Number of unissued
shares under rights
Expiry date of rights
12 December 2022
18,250,000
12 December 2026
Total performance rights on issue
18,250,000
Indemnifying Officers or Auditor
During or since the end of the financial period, the Company has given an indemnity or entered into an agreement
to indemnify, or paid or agreed to pay insurance premiums as follows:
•
The Company has entered into agreements to indemnify all Directors and provide access to documents,
against any liability arising from a claim brought by a third party against the Company. The agreement
provides for the Company to pay all damages and costs which may be awarded against the Directors.
•
The Company has paid premiums to insure each of the Directors against liabilities for costs and expenses
incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity
of Director of the Company, other than conduct involving a wilful breach of duty in relation to the Company.
The amount of the premium was $16,096 (2023: $15,406).
•
No indemnity has been given to the Group’s auditors.
Non-audit Services
The following non-audit services were provided by the Group’s auditor, Pitcher Partners BA&A Pty Ltd, or
associated entities. The Directors are satisfied that the provision of 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 auditor, as set out below, did not compromise the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
•
All non-audit services have been reviewed by the board to ensure they do not impact the impartiality and
objectivity of the auditor;
•
None of the services undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants (including Independence Standards).
Pitcher Partners BA&A Pty Ltd, or associated entities, received or are due to receive the following amounts for the
provision of non-audit services:
2024
2023
$
$
Tax compliance services
4,900
5,000
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
33
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of each element of the remuneration of each of the key management
personnel (“KMP”) of the Group (defined as “Directors”, both Non-Executive and Executive).
A. Remuneration Policy
The remuneration policy of Alto Metals Limited has been designed to align Directors’ objectives with shareholder
and business objectives by providing a fixed remuneration component, and offering specific long-term incentives
based on key performance areas affecting the Group’s financial results. The Board believes the remuneration
policy to be appropriate and effective in its ability to attract and retain the best Directors to run and manage the
Group, as well as create goal congruence between Directors and shareholders.
The Board’s policy for determining the nature and amount of remuneration for Directors of the Company is as
follows:
The remuneration policy, setting the terms and conditions for the Managing Director (“MD”), was developed and
approved by the Board. The MD receives a base salary (which is based on factors such as length of service and
experience) and superannuation. The Board reviews the MD’s package periodically by reference to the Group’s
performance, the MD’s performance, and comparable information from industry sectors and other listed
companies in similar industries.
The MD is also entitled to participate in the employee share and option arrangements.
All remuneration paid to Directors is valued at the cost to the Company and expensed. Options given to Directors
are valued using the Black-Scholes methodology.
The Board policy is to remunerate Non-Executive Directors at the lower end of market rates for comparable
companies for time, commitment, and responsibilities. The Board determines payments to the Non-Executive
Directors and reviews their remuneration periodically based on market practice, duties and accountability.
Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to
Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-
Executive Directors are not linked to the performance of the Group. To align Directors’ interests with shareholder
interests, the Non-Executive Directors are encouraged to hold shares in the Company.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’
investment objectives and KMP’s performance. The Group believes this policy will be effective in increasing
shareholder wealth. There is no direct link between remuneration paid to Non-Executive Directors and corporate
performance.
From time to time, the Board may issue, at its discretion, issue performance rights or incentive options to KMP
which are intended to align the interests of the KMP with those of Shareholders.
Use of remuneration consultants
The Group did not employ the services of any remuneration consultants during the financial period ended 30 June
2024.
Voting and comments made at the Company’s 2023 Annual General Meeting (“AGM”)
The Company received 90.8% of “yes” votes based on the number of proxy votes received on its remuneration
report for the 2023 financial year. The Company did not receive any specific feedback at the AGM or throughout the
year on its remuneration practices.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
34
B. Details of Remuneration for Period Ended 30 June 2024
The following table outlines benefits and payment details, in respect to the financial year, as well as the
components of remuneration for each member of the KMP of the Group.
Table of Benefits and Payments for the Period Ended 30 June 2024
Short-term benefits
Post-
employment
benefits
Equity-settled
share-based
payments
Salary, fees and
leave
Cash bonuses
Superannuation
Performance
Rights*
Total
Remuneration
performance
based
$
$
$
$
$
%
2024
M Connelly
60,000
-
6,600
45,414
112,014
41%
R Monti
48,000
-
5,280
58,278
111,558
52%
M Bowles
329,365
-
27,500
99,668
456,533
22%
437,365
-
39,380
203,360
680,105
30%
2023
M Connelly
42,500
-
9,228
148,877
200,605
74%
R Monti
48,000
-
5,040
166,490
219,530
76%
M Bowles
315,326
-
27,835
310,583
653,744
48%
T Wheeler
15,221
-
1,598
14,932
31,751
47%
J Wang
16,666
-
-
14,932
31,598
47%
437,713
-
43,701
655,814
1,137,228
58%
*Performance righs issued in previous years
Equity instrument disclosures relating to KMP
Ordinary Shares
The number of ordinary shares held by each KMP of the Group during the financial period is as follows:
Balance at the
start of the period
Conversion of
Performance
Rights1
Changes during
the period
Balance at the end
of the period
2024
Ordinary Shares
M Connelly
-
500,000
-
500,000
R Monti
5,369,658
1,250,000
1,923,0772
8,542,735
M Bowles
8,000,000
1,750,000
-
9,750,000
Total
13,369,658
3,500,000
1,923,077
18,792,735
1NIL is paid on the conversion of performance rights to ordinary shares
2 On 28 December 2023, 1,923,077 ordinary shares were issued at $0.052 per share as part of Mr. Monti’s participation in the
Share Placement as approved by the shareholders on 28 December 2023.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
35
Options
The number of options on issue over ordinary shares of the Company held by each KMP of the Group during the
financial period is as follows:
Balance at the
start of the
period
Options expired
during the period
Balance at the
end of the
period
Vested and
exercisable
2024
Unlisted Options
M Connelly
-
-
-
-
R Monti
-
-
-
-
M Bowles
7,500,000
(7,500,000)
-
-
Total
7,500,000
(7,500,000)
-
-
Performance Rights
The number of performance rights in Alto Metals Limited held by each KMP of the Company during the financial
period is as follows:
Balance at the
start of the
period
Issued
during the
period
Converted
during the
period
Balance at the
end of the
period
Vested and
exercisable
2024
Performance Rights
M Connelly
3,500,000
-
(500,000)
3,000,000
-
R Monti
4,250,000
-
(1,250,000)
3,000,000
-
M Bowles
7,750,000
-
(1,750,000)
6,000,000
-
Total
15,500,000
-
(3,500,000)
12,000,000
-
Service Agreements
The Group has a formal employment contracts with Matthew Bowles. The employment contract for Mr Bowles has
no fixed term and does not prescribe how remuneration levels are to be modified from year to year. A summary of
the main provisions of these contracts for the year ended 30 June 2024 are set out below:
NAME
TERMS
Matthew Bowles
(Managing Director and CEO)
Base salary of $329,365 (exclusive of superannuation contributions), reviewed
annually.
6 months’ notice by Mr. Bowles. 12 months by Company
Termination payments to reflect appropriate notice, except in cases of
termination for cause.
Mr. Bowles shall be eligible to participate in any Short Term or Long Term
Incentive Schemes that the Company may offer.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
36
C. Share-based compensation
Incentive Option Scheme
Options, where appropriate, may be granted under the Alto Metals Limited Employee Share Option Plan (“ESOP”).
Options are granted under the plan for no consideration on terms and conditions considered appropriate by the
Board at the time of issue. Options are granted for up to a five year period. Options granted under the plan carry
no dividend or voting rights.
The ability for the employee to exercise the options is restricted in accordance with the terms and conditions
detailed in the ESOP. Each option will automatically lapse if not exercised within five years of the date of issue.
The exercise period may also be affected by other events as detailed in the terms and conditions in the ESOP. The
options vest as specified when the options are issued.
Long term incentive rights (LTI)
LTI rights to directors and employees are delivered under an Employee Share Plan (the “Plan”) that was adopted by
the Group pursuant to approval by shareholders at the Annual General Meeting held of 30th November 2022.
A material feature of the Plan is that the issue of ordinary shares to directors and employees can be by way of
provision of a limited-recourse, interest free loan, to be used for the purpose of subscribing for the shares. The offer
of a limited-recourse, interest free loan is based on a share price not less than the volume weighted average price
at which shares are traded on the ASX over the 10 trading days up to and including the date of the issue of shares
offered under the Plan, or such other price as the Board of Directors determines. The term of each loan will be 3
years from the date of issue of the shares, subject to the earlier repayment in accordance with the terms of the
Plan.
After subscription, the shares are issued as ordinary shares, and the directors and employees enjoy the same rights
and benefits as other shareholders, apart from any vesting conditions that are attached and the fact the shares
cannot be sold until the loan is settled. Shares may be issued subject to vesting conditions relating to achievement
of milestones (such as period of employment) or escrow restrictions which must be satisfied before the shares can
be sold, transferred, or encumbered.
The nature of the Plan is to provide an incentive to cause the share price to rise over the term of a director’s and
employee’s service, as well as retaining the director’s and employee’s service, and hence there are no specific
performance conditions attaching to these shares. The shares are considered to be “in substance options” or
“long-term incentive rights” (“LTI rights”) under generally accepted accounting principles, and accordingly are
accounted for similar to options. The fair value of the LTI rights is estimated as at the date of grant using the Black
Scholes model taking into account the terms and conditions upon which the LTI rights are granted and factors such
as the share price at grant date, volatility of the share price and risk free rate. Accounting standards require the
value of the LTI rights to be brought to account over the expected term of vesting the benefits to the holder.
DIRECTORS’ REPORT
Alto Metals Limited | 2024 Annual Report
37
D. Other Transactions with Directors and Key Management Personnel
During the year, BB Consulting & Communications, an entity related to the spouse of M Bowles, a Director of the
Group, provided social media consulting services to the Group. All fees paid for such services were at market rates
and on a normal arm’s length basis. Total fees paid during the year were $36,190 (2023: $42,490). As at 30 June
2024 $Nil (2023: $Nil) was payable to BB Consulting & Communications.
Other than noted elsewhere in this report, no significant related party transactions have arisen during the year
ended 30 June 2024.
Group’s Performance
The table below sets out information about the Group’s earnings and movements in shareholder wealth for the
past five years up to and including the current financial year.
2024
2023
2022
2021
2020
Net loss after tax ($)*
(1,896,749)
(2,528,144)
(2,296,096)
(1,810,766)
(1,393,043)
Basic loss per share (cents)*
(0.27)
(0.44)
(0.47)
(0.46)
(0.48)
Share Price at year end (cents)
3.0
6.0
7.0
9.3
6.8
*Historical results have not been assessed and adjusted for the impact of new accounting standards.
----- End of Audited Remuneration Report -----
Alto Metals Limited | 2024 Annual Report
38
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the period ended 30 June 2022 has been received and can be
found on the following page.
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of
the Board of Directors on 30 September 2024.
Rounding amounts
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the
amounts in the directors’ report and in the financial report have been rounded to the nearest dollar.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking
responsibility on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section
237 of the Corporations Act 2001.
Mark Connelly
Non-Executive Chairman
Dated this 30th day of September 2024
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF ALTO METALS LIMITED AND ITS CONTROLLED
ENTITIES
In accordance with section 307C of the Corporations Act 2001, I declare to the best of my
knowledge and belief in relation to the audit of the financial report of Alto Metals Limited and
its controlled entities for the year ended 30 June 2024, there have been:
•
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
•
no contraventions of the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants
(including Independence Standards) in relation to the audit.
This declaration is in respect of Alto Metals Limited and the entities it controlled during the
year.
PITCHER PARTNERS BA&A PTY LTD
PAUL MULLIGAN
Executive Director
Perth, 30 September 2024
Alto Metals Limited | 2024 Annual Report
40
The accompanying notes form part of these financial statements.
for the period ended 30 June 2024
Note
2024
2023
$
$
Other income
71,907
95,457
Consulting expense
(124,162)
(80,421)
Depreciation
(138,694)
(85,077)
Employee benefits expense
2
(769,165)
(646,481)
Exploration & Evaluation expenses
(77,338)
(78,853)
Investor relations
(86,826)
(193,809)
Office rental and occupation expenses
(56,495)
(88,591)
Share based payments
3
(319,052)
(987,953)
Share registry and listing fees
(100,095)
(110,267)
Other expenses
4
(296,829)
(352,149)
Loss before income tax
(1,896,749)
(2,528,144)
Income tax (expense) / benefit
5
-
-
Loss for the year
(1,896,749)
(2,528,144)
Other comprehensive income, net of tax
Items not to be reclassified to profit or loss in subsequent
periods
Changes in the fair value of equity instruments carried at fair value
through other comprehensive income
9
(2,500)
(10,000)
Other comprehensive income / (loss) for the period
(2,500)
(10,000)
Total comprehensive loss attributable to members of the
parent entity
(1,899,249)
(2,538,144)
Basic & Diluted loss per share (cents per share)
7
(0.27)
(0.44)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
Alto Metals Limited | 2024 Annual Report
41
The accompanying notes form part of these financial statements.
as at 30 June 2024
Note
2024
2023
$
$
Current Assets
Cash and cash equivalents
8
1,916,608
1,075,068
Trade and other receivables
95,516
70,133
Prepayments
-
15,430
Total Current Assets
2,012,124
1,160,631
Non-Current Assets
Equity instruments at fair value
7,500
10,000
Property, plant and equipment
161,362
187,071
Right of Use Assets
151,689 233,462
Exploration and evaluation
10
30,892,526
28,720,181
Total Non-Current Assets
31,213,077
29,150,714
TOTAL ASSETS
33,225,201
30,311,345
Current Liabilities
Trade and other payables
11
678,945
1,162,043
Lease liability
111,405 89,036
Provisions
146,337
172,890
Total Current Liabilities
936,687
1,423,969
Non-Current Liabilities
Lease liability
62,832
151,496
Total Non- Current Liabilities
62,832
151,496
TOTAL LIABILITIES
999,519
1,575,465
NET ASSETS
32,225,682
28,735,880
Equity
Issued capital
12
53,688,200
48,105,200
Reserves
13
924,023
1,436,858
Accumulated losses
(22,386,541)
(20,806,178)
TOTAL EQUITY
32,225,682
28,735,880
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Alto Metals Limited | 2024 Annual Report
42
The accompanying notes form part of these financial statements.
for the year ended 30 June 2024
Issued Capital
Share Based
Payments
Reserve
Equity
Instruments
at FVOCI
Reserve
Accumulated
Losses
Total
$
$
$
$
$
Balance at 1 July 2022
42,563,659
1,189,023
(32,500)
(18,325,653)
25,394,529
Loss attributable to members of the entity for the period
Loss for the period
-
-
-
(2,528,144)
(2,528,144)
Other comprehensive income, net of tax
-
-
(10,000)
-
(10,000)
Total comprehensive loss for the period
-
-
(10,000)
(2,528,144)
(2,538,144)
Transaction with owners, directly in equity
Shares issued during the half-year
5,738,069
(650,000) -
-
5,088,069
Performance Rights expense during the half-year
-
940,335
-
47,619
987,954
Share issue transaction costs
(196,528)
-
-
(196,528)
Balance at 30 June 2023
48,105,200
1,479,358
(42,500)
(20,806,178)
28,735,880
Balance at 1 July 2023
48,105,200
1,479,358
(42,500)
(20,806,178)
28,735,880
Loss attributable to members of the entity for the period
Loss for the period
-
-
-
(1,896,749)
(1,896,749)
Other comprehensive income, net of tax
-
-
(2,500)
-
(2,500)
Total comprehensive loss for the period
-
-
(2,500)
(1,896,749)
(1,899,249)
Transaction with owners, directly in equity
Shares issued during the half-year
5,885,000
(513,000) -
-
5,372,000
Rights expense during theyear
-
2,665
-
316,386
319,051
Share issue transaction costs
(302,000)
-
-
(302,000)
Balance at 30 June 2024
53,688,200
969,023
(45,000)
(22,386,541)
32,225,682
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Alto Metals Limited | 2024 Annual Report
43
The accompanying notes form part of these financial statements.
for the period ended 30 June
Note
2024
2023
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
6,821
18,017
Payments to suppliers and employees
(1,602,135)
(1,459,793)
Other receipts
65,086
77,440
Net cash used in operating activities
14a
(1,530,228)
(1,364,336)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(1,544)
(1,928)
Payments for exploration and evaluation expenditure
(2,125,643)
(5,691,679)
Net cash used in investing activities
(2,127,187)
(5,693,607)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares during the period
4,952,000
5,088,070
Costs associated with shares issued during the period
(346,000)
(152,528)
Payment of lease liabilities
(107,045)
(58,871)
Net cash provided by financing activities
4,498,955
4,876,671
Net increase in cash and cash equivalents held
841,540
(2,181,272)
Cash and cash equivalents at beginning of the period
1,075,068
3,256,340
Cash and cash equivalents at the end of the half-year
8
1,916,608
1,075,068
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
44
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICY INFORMATION
The financial report includes the consolidated financial statements and notes of Alto Metals Limited (“the
Company”) and controlled entities (“the Group”). Alto Metals Limited is a listed public company, incorporated and
domiciled in Australia. The financial information is presented in Australian dollars.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board(“AASB”) and the Corporations
Act 2001. Alto Metals Limited is a for-profit entity for the purpose of preparing the financial statements.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this
financial report are presented below. They have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of investments.
The financial statements were authorised for issue by the Directors on 30 September 2024.
Rounding amounts
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the
amounts in the directors’ report and in the financial report have been rounded to the nearest dollar.
Going concern
The financial report has been prepared on the basis of accounting principles applicable to a going concern, which
assumes the commercial realisation of the future potential of the Group’s assets and the discharge of their
liabilities in the normal course of business.
As disclosed in the financial report, the Group recorded an operating loss of $1,896,749 (2023: $2,528,144), net
current assets of $1,075,437 (2023: net current liabilities of $263,338), net cash outflows used in operating
activities of $1,530,228 (2023: $1,364,336), net cash outflows used in investing activities of $2,127,187 (2023:
$5,693,607) and had cash and cash equivalents of $1,916,608 (2023: $1,075,068) for the year ended 30 June 2024.
The Board considers that the Group is a going concern. In arriving at this position the Directors have had regard to
the fact that based on the matters noted below the Group has, or in the Directors opinion, will have access to,
sufficient cash to fund administrative and other committed expenditure for a period of at least 12 months from the
date of signing this report. Specifically, the Directors’ conclusion is supported by the following:
•
The Group has the ability to curtail administrative, discretionary exploration and overhead cash outflows
as and when required; and
•
The Group has a history of successfully raising funds as and when required.
•
Subsequent to year end, the Group entered into a Scheme Implementation Deed with Brightstar where
Brightstar agreed to advance a loan facility to the Group in an aggregate amount of $2,000,000 to assist the
Group to fund its short-term working capital needs.
On this basis no adjustments have been made to the financial report relating to the recoverability and
classification of the carrying amount of assets or the amount and classification of liabilities that might be
necessary should the Group not continue as a going concern. Accordingly, the financial report has been prepared
on a going concern basis.
(A)
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent Alto Metals
Limited and its subsidiary. A list of the subsidiaries is provided in Note 19.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
45
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group
from the date on which control is obtained by the Group. Intercompany transactions, balances and unrealised
gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting
policies adopted by the Group.
(B)
INCOME TAX
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.
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.
(C)
EXPLORATION & EVALUATION EXPENDITURE
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the period in which the
decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life
of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
The Company receives research and development (“R&D”) grants from the Australian Taxation Office. Where an
R&D rebate can be directly attributable to an area of interest the R&D rebate is applied against the area of interest.
For any amounts that cannot be directly attributable to an existing area of interest the amount will be recognised
as grant income in profit or loss.
(D)
IMPAIRMENT OF NON-FINANCIAL ASSETS
At each the end of each reporting period, the Group assesses whether there is any indication that an asset may be
impaired. The assessment will include the consideration of external and internal sources of information If such an
indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset,
being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying value. Any excess
of the asset’s carrying value over its recoverable amount is expensed to profit or loss.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
46
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
(E)
EMPLOYEE BENEFITS
Provisions for short-term employee benefits, including annual leave that are expected to be settled wholly within
twelve months after the end of the reporting period, are measured at the (undiscounted) amount of the benefit
expected to be paid.
Provisions for other long-term employee benefits, including long service leave and annual leave that are not
expected to be settled wholly within twelve months after the end of the reporting period, are measured at the
present value of the expected benefit to be paid in respect of the services provided by employees up to the reporting
date.
Performance Rights
The Company measures the value of its performance rights using a Black & Scholes valuation on the date of
granting of the rights. The Company then determines the probability that performance conditions attaching to the
rights will be met and the rights will convert. Where the probability is greater than 50%, the full value is assigned to
the rights. Where the probability is less than 50%, no value is assigned to the rights. The value of the rights are then
amortised into expense evenly over the service period to the date of expiry, resulting in a share based payment
expense in profit or loss and accumulating in the Share based payment reserve in equity on the Consolidated
Statement of Financial Position.
(F)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the Consolidated Statement of Financial Position.
(G)
TRADE AND OTHER PAYABLES
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services
received by the Group during the reporting period which remains unpaid. The balance is recognised as a current
liability with the amount being normally paid within 30 days of recognition of the liability.
(H)
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The Directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information that can significantly affect the amounts recognised in the
financial statements. Estimates assume a reasonable expectation of future events and are based on current trends
and economic data, obtained both externally and within the Group.
Outcomes within the next financial year that are different from the assumptions made could require a material
adjustment to the carrying amounts of the specific assets and liabilities affected by the assumptions.
The key assumptions about the future, and other major sources of estimation uncertainty at the reporting date, that
have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are outlined below.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
47
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
Key Estimates — Impairment of Assets
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is
determined.
In determining the recoverable amount of assets, in the absence of quoted market prices, estimations are made
regarding the present value of future cash flows using asset-specific discount rates and the recoverable amount of
the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a
number of key estimates.
No impairment has been recorded for the year ended 30 June 2024.
Key Estimates – Share-based payments (Refer to note 3)
The Group measures the cost of equity settled share-based payments (including options and rights issued) at fair
value at the grant date using the Black Scholes model taking into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date, the expected volatility of the underlying share, the expected
dividend yield and risk free interest rate for the term of the option.
Key Judgments – Benefit from Deferred Tax Losses (Refer to note 4)
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been
brought to account at 30 June 2024 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 loss and exploration expenditure to be realised;
•
the Group continues to comply with conditions for deductibility imposed by law; and
•
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the
loss and exploration expenditure.
(I)
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
The Group 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. There is no
material impact on any new or amended Accounting Standards and Interpretations adopted by the Group. Any new
or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following relevant standards and interpretations have been issued by the AASB but are not yet effective for the
year ending 30 June 2024:
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current, AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as
Current or Non-current – Deferral of Effective Date
AASB 2020-1 amends AASB 101 Presentation of Financial Statements to clarify requirements for the presentation
of liabilities in the statement of financial position as current or non-current. It requires a liability to be classified as
current when entities do not have a substantive right to defer settlement at the end of the reporting period.
AASB 2020-1 mandatorily applies to annual reporting periods beginning on or after 1 January 2024 (as amended by
AASB 2022-6 and AASB 2020-6) and will first be applied by the Group in the financial year commencing 1 July 2024.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
48
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
AASB 18: Presentation and Disclosure in Financial Statements
AASB 18 replaces AASB 101 Presentation of Financial Statements to improve how entities communicate in their
financial statements, with a focus on information about financial performance in the profit or loss.
AASB 18 has also introduced changes to other accounting standards including AASB 108 Basis of Preparation of
Financial Statements (previously titled Accounting Policies, Changes in Accounting Estimates and Errors), AASB 7
Financial Instruments: Disclosures, AASB 107 Statement of Cash Flows, AASB 133 Earnings Per Share and AASB
134 Interim Financial Reporting.
The key presentation and disclosure requirements are:
(a) the presentation of two newly defined subtotals in the statement or profit or loss, and the classification of
income and expenses into operating, investing and financing categories – plus income taxes and
discontinuing operations;
(b) the disclosure of management-defined performance measures; and
(c) enhanced requirements for grouping (aggregation and disaggregation) of information.
AASB 18 mandatorily applies to annual reporting periods commencing on or after 1 January 2027 for for-profit
entities. It will be first applied by the Group in the financial year commencing 1 July 2027.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
NOTE 2: EMPLOYEE BENEFITS EXPENSE
2024
2023
$
$
Salary, Wages & Director Fees
1,257,120
1,240,607
Superannuation
118,804
123,533
Provision for leave
(26,552)
22,325
Taxes
29,132
28,847
Salary & superannuation transferred to Capitalised Exploration
(609,339)
(768,831)
(769,165)
646,481
NOTE 3: SHARE-BASED PAYMENTS
Share based payments recognised during the year are:
2024
2023
$
$
Performance Rights continued to vest during the period
319,052
987,953
(i) On 25 November 2020, Shareholders approved the issue of 3,000,000 Performance Rights to Messrs Bowles
and Monti, Directors of the Group at the date of grant. These were issued on 1 December 2020 along with an
additional 1,500,000 Performance Rights under the Company’s Employee Share Plan.
On 17 October 2022 the Company issued 500,000 Performance Rights to incoming director Mr Mark Connelly.
On 12 December 2022 an additional 400,000 Performance Rights were issued under the Company’s Employee
Share Plan.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
49
NOTE 3: SHARE-BASED PAYMENTS (continued)
The Performance Rights are subject to the following vesting conditions:
(a) The Performance Rights will vest, subject to the satisfaction of the following performance milestones
being met before the Expiry Date and the relevant holder being an employee, office-bearer or consultant
of the Company at the time of the Milestone being satisfied, or as otherwise determined by the Board.
(b) Performance Rights will vest upon the Company announcing a Joint Ore Reserves Committee (JORC)
2012 compliant Mineral Resource within the Sandstone Gold Project, JORC 2012 compliant Mineral
Resource of 1 million ounces of gold located within the Sandstone Gold Project
Valuation of Share Based Payments
Grant date share
price
$0.10
$0.07
$0.07
Number
4,500,000
500,000
400,000
Expiry date
25-Nov-23
17-Oct-23
12-Dec-23
Total fair value
$450,000
$35,000
$28,000
The fair value of these Performance Rights granted was estimated as at the date of grant using the Black Scholes
model taking into account the terms and conditions upon which the Performance Rights were granted and factors
such as the share price at grant date, volatility of the share price and risk free rate. An expense of $133,114 was
recognised for the year ended 30 June 2024 (2023: $204,867).
During the year, Performance Rights above have vested as they have met the conditions of the relevant
performance milestone of a JORC 2012 compliant Mineral Resource of 1 million ounces of gold located within the
Sandstone Gold Project. The above performance rights were converted to issued capital on 30 November 2023.
(ii) On 30 November 2022, Shareholders approved the issue of 12,000,000 Performance Rights to Messrs
Connelly, Bowles and Monti, directors of the Company. These were issued on 12 December 2022 along
with an additional 6,250,000 Performance Rights under the Company’s Employee Share Plan.
The Performance Rights are subject to the following vesting conditions:
(a) The Performance Rights will vest, subject to the satisfaction of the following performance milestones
being met before the Expiry Date and the relevant holder being an employee, office-bearer or consultant
of the Company at the time of the Milestone being satisfied, or as otherwise determined by the Board.
(b) Performance Rights will vest upon the Company announcing a Joint Ore Reserves Committee (JORC)
2012 compliant Mineral Resource within the Sandstone Gold Project, as follows:
a. JORC 2012 compliant Mineral Resource of 1.5 million ounces of gold located within the
Sandstone Gold Project
b. Completion of a Feasibility Study
Valuation of Share Based Payments
Grant date share
price
$0.07
$0. 07
Number
12,000,000
6,250,000
Expiry date
31-Dec-24
31-Dec-24
Total fair value
$840,000
$437,500
The fair value of these Performance Rights granted was estimated as at the date of grant using the Black Scholes
model taking into account the terms and conditions upon which the Performance Rights were granted and factors
such as the share price at grant date, volatility of the share price and risk free rate. An expense of $185,937 was
recognised for the year ended 30 June 2024 (2023: $783,086).
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
50
NOTE 3: SHARE-BASED PAYMENTS (continued)
Change of control
In the event that the Sandstone Gold Project is sold or a Change of Control Event (as defined in the Plan rules)
occurs or the Board determines that either such an event is likely to occur before the Vesting Conditions are met,
the Board will have a discretion whether to allow the vesting of the Performance Rights and on what terms. When
determining the vesting of the Performance Rights, the Directors will take into consideration a number of criteria,
but in particular the value to shareholders as a result of the event.
NOTE 4: OTHER EXPENSES
Included in the loss for the period are the following items of expenses:
2024
2023
$
$
Accounting and audit fees
(31,563)
(74,230)
Computers and software
(35,511)
(37,258)
Conferences and Seminars
(80,570)
(92,221)
Insurance
(47,305)
(40,882)
Legal fees
(3,494)
(43,102)
Travel and accommodation
(82,796)
(52,827)
Other expenses
(15,590)
(11,629)
(269,829)
(352,149)
NOTE 5: INCOME TAX
2024
2023
$
$
(a) Income tax (benefit)/expense
Current tax
-
-
Deferred tax
-
-
-
-
Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable on profit from ordinary activities before
income
tax is reconciled to the income tax expense as follows:
Prima facie tax on operating loss at 25% (2023: 30%)
(474,812)
(632,029)
Add / (Less) tax effect of:
Entertainment
5,750
4,169
Share based payments
79,763
246,988
Other expenses
(5,365)
-
Research and development costs
-
29,183
Deferred tax asset not brought to account
394,644
351,688
Income tax benefit attributable to operating loss
-
-
2024
2023
(b) Deferred tax assets
$
$
Tax Losses
10,358,443
9,382,543
Provisions and Accrual
38,928
52,910
Capital Raising and business-related costs
136,042
127,248
Plant and Equipment under lease
43,559
1,768
Investments revalued through equity
23,126
22,500
10,600,098
9,586,968
Set-off deferred tax liabilities
(10,600,098)
(9,586,968)
Net deferred tax assets
-
-
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
51
NOTE 5: INCOME TAX (continued)
(c) Deferred tax liabilities
Exploration expenditure
(7,718,132)
(7,180,045)
Prepayments
-
(3,858)
(7,718,132)
(7,183,903)
Set-off deferred tax assets
7,718,132
7,183,903
Net deferred tax liabilities
-
-
(d) Deferred income tax (revenue)/expense included in income tax
expense comprise:
Increase in deferred tax assets
(983,950)
(1,772,517)
Increase in deferred tax liabilities
513,786
1,334,154
Non-recognition of deferred tax position
29,187
438,363
Revaluation of deferred tax position due to change in tax rate
440,978
-
Net deferred income tax
-
-
(e) Deferred income tax related to items charged or credited
directly to equity
Increase in deferred tax assets
76,125
(40,632)
Decrease in deferred tax liabilities
-
-
Non-recognition of deferred tax position
(76,125)
40,632
Revaluation of deferred tax position due to change in tax rate
-
-
Net deferred income tax
-
-
(f) Deferred tax assets not brought to account
Unused tax losses for which no deferred tax asset has been
recognised
10,358,443
9,382,543
Temporary differences for which no deferred tax asset has been
recognised
(7,514,399)
(6,979,477)
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been
brought to account at 30 June 2024 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 loss and exploration expenditure to be realised;
•
the Group continues to comply with conditions for deductibility imposed by law; and
•
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the
loss and exploration expenditure.
NOTE 6: AUDITORS’ REMUNERATION
2024
2023
$
$
Remuneration of the auditor of the Group for:
- Auditing or reviewing the financial report by Pitcher Partners BA&A
Pty Ltd
38,863
36,390
Remuneration of the auditor, or associated entities, of the Group for
non-audit services:
-
ESS Scheme
1,200
-
-
ETP Calculations
750
-
-
Tax compliance services
2,400
2,600
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
52
NOTE 7: LOSS PER SHARE
2024
2023
$
$
(a) Reconciliation of earnings to loss
Earnings used in the calculation of basic EPS
(1,896,749)
(2,528,144)
(b) Weighted average number of ordinary shares outstanding during
the period used in calculation of basic EPS
709,993,056
579,478,176
Basic & diluted loss per share (cents per share)
(0.27)
(0.44)
Antidilutive options on issue not used in dilutive EPS calculation
-
7,500,000
Antidilutive performance rights on issue not used in dilutive EPS
calculation
18,250,000
24,250,000
NOTE 8: CASH AND CASH EQUIVALENTS
2024
2023
$
$
Cash at bank
1,916,068
1,075,068
Reconciliation of cash
Cash at the end of the financial period as shown in the Consolidated
Statement of Cash Flows is reconciled to items in the Consolidated
Statement of Financial Position as follows:
Cash and cash equivalents
1,916,068
1,075,068
NOTE 9: FINANCIAL INSTRUMENTS
Note 1(D) provides a description of each category of financial instrument and related accounting policies. The
carrying amounts of financial assets and financial liabilities in each category are as follows:
Amortised
FVOCI
Cost
$
$
30 June 2024
Financial assets
Cash and cash equivalents(i)
1,916,606
-
Trade and other receivables(i)
95,516
-
Equity instruments(ii)
-
7,500
Total financial assets
2,012,122
7,500
Financial liabilities
Trade and other payables(i)
(678,945)
-
Lease liabilities(iii)
(174,237)
-
Total financial liabilities
(853,182)
-
30 June 2023
Financial assets
Cash and cash equivalents(i)
1,075,068
-
Trade and other receivables(i)
70,133
-
Equity instruments(ii)
-
10,000
Total financial assets
1,145,201
10,000
Financial liabilities
Trade and other payables(i)
(1,162,043)
-
Lease liabilities(iii)
(240,532)
-
Total financial liabilities
(1,402,575)
-
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
53
NOTE 9: FINANCIAL INSTRUMENTS (continued)
(i)
The carrying amount of the following financial assets and liabilities is considered reasonable
approximation of fair value:
- cash and cash equivalents
- trade and other receivables
- trade and other payables
(ii)
Equity instruments at fair value through other comprehensive income
2024
2023
$
$
Balance at the beginning of the reporting period
10,000
20,000
Add revaluation increments/(decrements)
(2,500)
(10,000)
7,500
10,000
Equity instruments are shares held in an ASX listed entity, Enterprise Metals Ltd, and were revalued in the current
period based on the share sale price at reporting date. Fair value has been determined by reference to quoted
market prices.
NOTE 10: EXPLORATION AND EVALUATION
2024
2023
$
$
Exploration and evaluation – at cost
30,892,526
28,720,181
Exploration and evaluation - movement
Opening balance
28,720,181
23,481,586
Exploration and evaluation expenditure
2,172,345
5,238,595
Closing balance
30,892,526
28,720,181
Projects
Sandstone North
2,917,838
2,582,254
Hacks
3,222,393
3,013,013
Raffertys
6,349,559
6,241,720
Marley Well
3,605,279
3,524,553
Twin Reef
610,609
564,023
Black Hill
316,602
237,528
Mt Dwyer
336,997
221,637
Hancocks
692,972
326,713
Maynard Hills
195,452
95,457
Coonayunna Spring
181,563
99,685
Indomitable
4,410,621
4,102,861
Vanguard
2,646,840
2,549,432
Maninga Marley
546,914
476,281
Lord Henry
1,208,643
1,145,303
Lord Nelson
3,649,770
3,539,273
Wirraminna
474
448
30,892,526
28,720,181
The Directors’ assessment of the carrying amount for the Group’s exploration and evaluation assets was after consideration of
prevailing market conditions; previous expenditure for exploration work carried out on the tenements; and the potential for
mineralisation based on the Group’s and independent geological reports. The ultimate value of these assets is dependent upon
recoupment by commercial development or the sale of the whole or part of the Group’s interests in these exploration and
evaluation assets for an amount at least equal to the carrying value. There may exist on the Group’s exploration and evaluation
assets, areas subject to claim under Native Title or containing sacred sites or sites of significance to Aboriginal people.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
54
NOTE 10: EXPLORATION AND EVALUATION (continued)
As a result, the Group’s exploration and evaluation assets or areas within the tenements may be subject to exploration and
mining restrictions.
As at 30 June 2024 the Directors have concluded that there remains an expectation that the carrying amount of the Group’s
exploration and evaluation assets will be recovered in full on the basis of the above factors, and hence no impairment triggers
exist. Consequently, no detailed impairment assessment has been performed.
NOTE 11: TRADE AND OTHER PAYABLES
2024
2023
$
$
CURRENT – UNSECURED LIABILITIES
Trade and other payables
654,067
1,107,792
Accrued expenses
24,878
54,251
678,945
1,162,043
All amounts in trade and other payables are short term and the carrying values are considered a reasonable approximation of
fair value. Refer to Note 22 related party transactions for payable balances with related parties.
NOTE 12: ISSUED CAPITAL
(a) Issued capital
2024
2023
$
$
721,523,172 (2023: 612,815,479) Fully paid ordinary shares
53,688,200
48,105,200
53,688,200
48,105,200
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends.
(b) Ordinary shares
2024
2024
2023
2023
No.
$
No.
$
The following movements in ordinary share
capital occurred during the reporting period:
Balance at beginning of the period
612,815,479
48,105,200
528,037,512
42,563,659
Shares issued during the period
31 July 2023 – share placement
101,384,616
5,272,000
30 November 2023
5,400,000
513,000(i)
28 December 2023 – placement to director
1,923,077
100,000
Prior year
8 July 2022
6,500,000
650,000
10 November 2022
36,153,848
2,350,000
19 December 2022
21,354,887
1,388,068
22 December 2022
10,000,000
650,000
22 December 2022
10,769,232
700,000
Costs associated with equity raisings
(302,000)
(196,527)
Balance at end of the period
721,523,172
53,688,200
612,815,473
48,105,200
(i) 5,400,000 performance rights were converted into issued capital upon satisfying the vesting condition, reflecting
their fair value, as noted in note 3.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
55
NOTE 12: ISSUED CAPITAL (continued)
(c) Performance Rights
2024
2024
2023
2023
No.
$
No.
$
The following movements in performance
rights occurred during the reporting period:
Balance at beginning of the period
24,650,000
1,240,453
13,000,000
950,118
Rights expensed during the period
319,052
Rights cancelled during the period,
transferred to accumulated losses
(1,000,000)
(77,482)
Rights vested during the period, coverted to
issued capital
(5,400,000)
(513,000)
Prior year
Rights Issued during the period
19,150,000
Rights expensed during the period
987,593
Rights cancelled during the period,
transferred to accumulated losses
(1,000,000)
(47,618)
Rights vested during the period, coverted to
issued capital
(6,500,000)
(650,000)
18,250,000
969,022
24,650,000
1,240,513
(d) LTI rights
2024
2024
2023
2023
No.
$
No.
$
The following movements in LTI rights
occurred during the reporting period:
Balance at beginning of the period
6,250,000
118,004
6,250,000
118,004
LTI rights issued during the period
LTI rights expired during the period,
transferred to accumulated losses
(6,250,000)
(118,004)
Prior year
LTI rights issued during the period
LTI rights expired during the period
Balance at end of the period
-
-
6,250,000
118,004
(e) Unlisted Options
2024
2024
2023
2023
No.
$
No.
$
The following movements in unlisted
options occurred during the reporting
period:
Balance at beginning of the period
7,500,000
120,901
7,500,000
120,901
Options expired during the period,
transferred to accumulated losses
(7,500,000)
(120,901)
Balance at end of period (100% vested)
-
-
7,500,000
120,901
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
56
NOTE 12: ISSUED CAPITAL (continued)
(f) Capital Management
The Directors’ objectives when managing capital are to ensure that the Group can fund its operations and continue
as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders.
The Group has no debt as at 30 June 2024 therefore has no externally imposed capital restrictions.
NOTE 13: RESERVES
2024
2023
$
$
Equity instruments at FVOCI Reserve
(45,000)
(42,500)
Share based payments reserve
969,023
1,479,358
924,023
1,436,858
Movements in reserves
2024
2023
$
$
Equity instruments at FVOCI Reserve
Balance at beginning of the period
(42,500)
(32,500)
Add revaluation increments during the period
(2,500)
(10,000)
Balance at end of the period
(45,000)
(42,500)
This reserve is used to record the fair value movements of the Group’s equity instruments in accordance its
accounting policy.
2024
2023
$
$
Share-based payments reserve
Balance at beginning of the period
1,479,358
1,189,023
Expense of performance rights during the period(i)
319,052
987,953
Performance rights lapsed during the period, transferred to
accumulated losses
(77,482)
-
Write Back value of exercised options
(120,901)
(47,618)
Write Back LTI Rights
(118,004)
-
Transfer of Performance Rights to issued Capital
(513,000)
(650,000)
Balance at end of the period
969,023
1,479,358
This reserve is used to record the value of equity benefits provided to Directors, employees and third parties of the
Group in accordance with its accounting policy.
(i)
Refer to Note 3 for details.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
57
NOTE 14: CASH FLOW INFORMATION
(a) Reconciliation of Cash Flow from Operations with loss after
Income Tax
2024
2023
$
$
Loss after income tax
(1,896,749)
(2,528,144)
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss from ordinary activities:
Depreciation
138,694
85,077
Share based payments
319,052
987,953
Impairment of exploration and evaluation
2,283
Changes in assets and liabilities:
(Increase)/decrease in prepayments
15,430
4,072
(Increase)/decrease in other assets
(15,473)
22,325
(Decrease)/increase in payables
(93,465)
64,381
Cash flow used in operations
(1,530,228)
(1,364,336)
(b) Change in liabilities from financing activities
Opening
balance
1-Jul-23
Additions
during the year
Interest
expense
Payments
Closing
balance
30-Jun-24
Lease liabilities
240,532
29,668
11,082
(107,045)
174,237
240,532
29,668
11,082
(107,045)
174,237
NOTE 15: EVENTS SUBSEQUENT TO REPORTING DATE
On 1 August 2024, Alto announced that it had entered into a Scheme Implementation Deed with Brightstar under
the terms of which Brightstar will acquire all of the issued shares in Alto by way of a Court approved scheme of
arrangement between Alto and its shareholders (Scheme), for consideration of four (4) New Brightstar Shares for
every one (1) Alto Share held by a Scheme Shareholder. As at the date of this report, the proposed scheme valued
Alto shares at $0.068 each and the Company as a whole at $49 million.
NOTE 16: RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions, no more favourable than
those available to other parties, unless otherwise stated.
KMP Compensation
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid to each
member of the Group’s KMP for the year ended 30 June 2024. The totals of remuneration paid to KMP during the
year are as follows:
2024
2023
$
$
Short-term employee benefits (i)
437,365
437,713
Post-employment benefits
39,380
43,701
Share based payments
203,360
655,814
680,105
1,137,228
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
58
NOTE 16: RELATED PARTY TRANSACTIONS (continued)
(i)
A portion of short-term employee benefits are paid to director-related parties.
Other Related Party Transactions
During the year, BB Consulting & Communications, an entity related to the spouse of M Bowles, a Director of the
Group, provided social media consulting services to the Group. All fees paid for such services were at market rates
and on a normal arm’s length basis. Total fees paid during the year were $36,190(2023: $42,490). As at 30 June 2024
$Nil (2023: $Nil) was payable to BB Consulting & Communications.
NOTE 17: COMMITMENTS
Expenditure commitments
The Group has entered into certain obligations to perform minimum work on mineral tenements held. The Group
is required to meet tenement minimum expenditure requirement which are set out below. These may be varied or
deferred on application and are expenditures expected to be met in the normal course of business.
2024
2023
$
$
- not later than 12 months
1,101,200
829,520
- between 12 months and 5 years
5,121,375
3,837,310
6,222,575
4,666,830
NOTE 18: FINANCIAL INSTRUMENT RISK
The Group’s financial instruments consist mainly of deposits with banks, short-term and long-term investments,
accounts receivable and payable and short-term fixed rate loans. The main purpose of non-derivative financial
instruments is to raise finance for Group operations. The Group does not speculate in the trading of derivative
instruments.
The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk
consisting of interest rate, and equity price risk.
(a) Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of
contract obligations that could lead to a financial loss to the Group.
The Group does not have any material credit risk exposure to any single receivable or company of receivables under
financial instruments entered into by the Group.
Credit risk exposures
The maximum exposure to credit risk is that to its alliance partners and that is limited to the carrying amount, net
of any provisions for impairment of those assets, as disclosed in the Consolidated Statement of Financial Position.
There are no material amounts of collateral held as security at 30 June 2024. Trade and other receivables are
expected to be settled within 30 days and there is no history of credit losses.
Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance
with approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a
Standard and Poor’s rating of at least AA-. The following table provides information regarding the credit risk relating
to cash and money market securities based on Standard and Poor’s counterparty credit ratings.
Note
2024
2023
$
$
Cash and cash equivalents
- AA Rated
7
1,916,608
1,075,068
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
59
NOTE 18: FINANCIAL INSTRUMENT RISK (continued)
(b) Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient
cash and marketable securities are available to meet the current and future commitments of the Group. The Board
constantly monitors the state of equity markets in conjunction with the Group’s current and future funding
requirements, with a view to initiating appropriate capital raisings or alternative funding arrangements as required.
Any surplus funds are invested with major financial institutions.
The financial liabilities of the Group include trade and other payables, and loans and borrowings, as disclosed in
the Statement of Financial Position. All trade and other payables are non-interest bearing and due within 12 months
of the reporting date. All loans and borrowings are interest bearing and due within 12 months of the reporting date.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities. Cash flows realised
from financial assets reflects management’s expectation as to the timing of realization. Actual timing may therefore
differ from that disclosed.
Within 1 Year
1 to 5 Years
Total
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
Financial liabilities due for payment
Trade and other payables
678,945
1,162,043
-
-
678,945
1,162,043
Lease liabilities
111,405
96,924
62,832
152,848
174,237
249,772
Total expected outflows
790,350
1,258,967
62,832
152,848
853,182
1,411,815
(c) Market risk
The Board meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury
management strategies in the context of the most recent economic conditions and forecasts.
(i)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting
period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial
instruments. The Group is also exposed to earnings volatility on floating rate instruments. Interest rate risk is
managed by closely monitoring the interest rates at various financial institutions and using fixed rate debt.
At the reporting date the Group’s only exposure to interest rate risk is related to the balance of its cash and cash
equivalents. The following table represents the Group’s exposure to interest rate risk:
Variable rate instruments
2024
2023
Cash and cash equivalents
1,916,608
1,075,068
A change of 1% (2023: 1%) in variable interest rates would not have a significant effect on the Group.
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
60
NOTE 19: FINANCIAL INSTRUMENT RISK (continued)
(d) Equity price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified
on the Consolidated Statement of Financial Position as equity instruments at fair value through other
comprehensive income.
Listed investments have been valued at the quoted market bid price at the end of reporting period, adjusted for
transaction costs expected to be incurred. At 30 June 2024, the effect on profit and equity as a result of changes in
listed equity prices, with all other variables remaining constant would be as follows:
Listed equity price
-10%
Listed equity price
+10%
Carrying
Amount
Net
Loss
Equity
Net
Loss
Equity
$
$
$
$
$
30 June 2024
7,500
(750)
(750)
750
750
30 June 2023
10,000
(1,000)
(1,000)
1,000
1,000
(e) Net Fair Values
Cash and cash equivalents, trade and other receivables and trade and other payables are short-term investments
in nature whose carrying value is equivalent to fair value.
Fair value measurement hierarchy
AASB 13 Fair value measurement: requires disclosure of fair value measurements by level of the following fair value
measurement hierarchy:
(a)
Level 1 – the instrument has quoted prices (unadjusted) in active markets for identical assets and liabilities;
(b) Level 2 – a valuation technique is used using inputs other than quoted priced within Level 1 that are
observable for the financial instrument, either directly (i.e. as prices), or indirectly (i.e. derived from prices);
or
(c)
Level 3 – a valuation technique is used using inputs that are not based on observable market data
(unobservable inputs).
The table below classifies financial instruments recognised in the Consolidated Statement of Financial Position
according to the fair value measurement hierarchy stipulated in AASB 13 Fair value measurement.
Level 1
Level 2
Level 3
Total
Year ended 30 June 2024
$
$
$
$
Financial Assets
Equity instruments at FVOCI
7,500
7,500
Year ended 30 June 2023
Financial Assets
Equity instruments at FVOCI
10,000
10,000
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
61
NOTE 20: PARENT ENTITY DISCLOSURES
(a) Financial Position of Alto Metals Limited
2024
2023
$
$
CURRENT ASSETS
Cash and cash equivalents
1,916,606
1,075,066
Trade and other receivables
95,516
70,133
Prepayments
-
15,430
TOTAL CURRENT ASSETS
2,012,122
1,160,629
NON-CURRENT ASSETS
Equity instruments at fair value
7,500
10,000
Right of Use Assets
161,362
187,071
Property, plant and equipment
151,689
233,462
Other assets
30,912,063
28,739,718
TOTAL NON-CURRENT ASSETS
31,232,614
29,170,251
TOTAL ASSETS
33,244,736
30,330,880
CURRENT LIABILITIES
Trade and other payables
678,945
1,162,043
Lease liability
111,405
89,036
Provisions
146,337
172,890
TOTAL CURRENT LIABILITIES
936,687
1,423,969
NON-CURRENT LIABILITIES
Lease liability
62,832
151,496
TOTAL NON - CURRENT LIABILITIES
62,832
151,496
TOTAL LIABILITIES
999,519
1,575,465
NET ASSETS
32,245,217
28,755,415
EQUITY
Issued capital
53,688,200
48,105,200
Reserves
924,023
1,436,858
Accumulated losses
(22,367,006)
(20,786,643)
TOTAL EQUITY
32,245,217
28,755,415
(b) Financial Performance of Alto Metals Limited
Loss for the year
(1,896,749)
(2,528,144)
Other comprehensive (loss) / income
(2,500)
(10,000)
Total comprehensive loss
(1,899,249)
(2,538,144)
The parent entity has no commitments as at year end (2023: Nil)
NOTES TO THE FINANCIAL STATEMENTS
Alto Metals Limited | 2024 Annual Report
62
NOTE 21: CONTINGENT LIABILITIES
As at 30 June 2024 the Group has bank guarantees to the value of $82,730 (2023: $42,833) to secure rental bonds.
NOTE 22: OPERATING SEGMENTS
The Directors have considered the requirements of AASB 8 Operating Segments and the internal reports that are
reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that at this
time there are no separately identifiable segments. The Group remains focused on mineral exploration over areas
of interest solely in Western Australia.
Alto Metals Limited | 2024 Annual Report
63
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Alto Metals Limited is required by Australian Accounting Standards to prepare consolidated financial statements in
relation to the company and its controlled entity (the consolidated entity).
In accordance with subsection 295(3A) of the Corporations Act 2001, this consolidated entity disclosure statement
provides information about each entity that was part of the consolidated entity at the end of the financial year.
Name of entity
Type of entity
Place formed or
incorporated
Percentage of
share capital
held
(if applicable)
Australian tax
resident or
foreign tax
resident
Foreign tax
jurisdiction
(if applicable)
Alto Metals Limited
Body corporate
Australia
N/A
Australian
N/A
Sandstone
Exploration Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Alto Metals Limited | 2024 Annual Report
64
DIRECTORS’ DECLARATION
The Directors declare that:
1. The financial statements for the financial year ended 30 June 2024, and notes set out on pages 40 to 63 are
in accordance with the Corporations Act 2001, including:
a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
reporting requirements; and
b. giving a true and fair view of the Group’s financial position as at 30 June 2024 and of their
performance for the financial year ended on that date;
2. In the directors’ opinion, the consolidated entity disclosure statement required by subsection 295(3A) of
the Corporations Act 2001 is true and correct;
3. In their opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable; and
4. A statement that the attached financial statements are in compliance with International Financial
Reporting Standards has been included in the notes to the financial statements.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required
by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Mark Connelly
Non-Executive Chairman
Dated this 30th day of September 2024
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Alto Metals Limited (the “Company”) and its controlled entities
(the “Group”), which comprises the consolidated statement of financial position as at 30 June 2024,
the consolidated statement of profit or loss and 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 material accounting policy information, the consolidated entity
disclosure statements and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(a)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year then ended; and
(b)
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 (including Independence Standards) (“the Code”) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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.
Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney
Pitcher Partners is an association of independent firms.
Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members
of which are separate and independent legal entities.
pitcher.com.au .
Pitcher Partners BA&A Pty Ltd
An independent Western Australian Company ABN 76 601 361 095.
Level 11, 12-14 The Esplanade, Perth WA 6000
Registered Audit Company Number 467435.
Liability limited by a scheme under Professional Standards Legislation.
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
Key Audit Matter
How our audit addressed the key audit
matter
Capitalisation of exploration and
evaluation expenditure
Refer to Note 10 to the financial report.
As at 30 June 2024, the Group held
capitalised exploration and evaluation
expenditure of $30,892,526.
The carrying value of exploration and
evaluation expenditure is assessed for
impairment by the Group when facts and
circumstances indicate that the capitalised
exploration and evaluation expenditure may
exceed its recoverable amount.
The determination as to whether there are
any indicators to require the capitalised
exploration and evaluation expenditure to
be assessed for impairment involves a
number of judgments including but not
limited to:
•
Whether the Group has tenure of the
relevant area of interest;
•
Whether the Group has sufficient funds
to meet the relevant area of interest
minimum expenditure requirements;
and
•
Whether there is sufficient information
for a decision to be made that the
relevant area of interest is not
commercially viable.
Due to the significance to the Group’s
financial report and the level of judgment
involved in assessing whether there are
impairment indicators present, we consider
this to be a key audit matter.
Our procedures included, amongst others:
Obtaining an understating of and evaluating
the design and implementation of the
processes and controls associated with the
capitalisation of exploration and evaluation
expenditure, and those associated with the
assessment of impairment indicators.
Examining the Group’s right to explore in the
relevant area of interest, which included
obtaining and assessing supporting
documentation. We also considered the
status of the exploration licences as it
related to tenure.
Considering the Group’s intention to carry
out significant exploration and evaluation
activity in the relevant area of interest,
including an assessment of the Group’s
cash-flow forecast models, discussions with
senior management and directors as to the
intentions and strategy of the Group.
Testing a sample of transactions by sighting
evidence of signed contracts, related
invoices and comparing the amount
recognised as deferred exploration and
evaluation assets is in accordance with
AASB 6 Exploration for and Evaluation of
Mineral Resources.
Reviewing management’s evaluation and
judgement as to whether the exploration
activities within each relevant area of
interest have reached a stage where the
commercial viability of extracting the
resource could be determined.
Assessing the adequacy of the disclosures
included within the financial report.
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
Key Audit Matter
How our audit addressed the key audit
matter
Share based payments
Refer to Note 1(I) & 3
Share based payments represent $319,052
of the Group’s expenditure.
Share based payments must be recorded at
fair value of the service provided, or in the
absence of such, at the fair value of the
underlying equity instrument granted.
Under Australian Accounting Standards,
equity settled awards are measured at fair
value on the measurement date taking into
consideration the probability of the vesting
conditions (if any) attached. This amount is
recognised as an expense either
immediately if there are no vesting
conditions, or over the vesting period if
there are vesting conditions.
In calculating the fair value there are a
number of judgements management must
make, including but not limited to:
•
Estimating the likelihood that the
equity instruments will vest;
•
Estimating expected future share
price volatility;
•
Expected dividend yield; and
•
Risk-free rate of interest.
Due to the significance to the Group’s
financial report and the level of judgment
involved in determining the valuation of the
share based payments, we consider the
Group’s calculation of the share based
payment expense to be a key audit matter.
Our procedures included, amongst others:
Obtaining an understanding of and
evaluating the design and implementation of
the processes and controls associated with
the preparation of the valuation model used
to assess the fair value of share-based
payments, including those relating to
volatility of the underlying security and the
appropriateness of the model used for
valuation.
Critically evaluating and challenging the
methodology and assumptions of
Management in their preparation of
valuation model, including management’s
assessment of likelihood of vesting,
agreeing inputs to internal and external
sources of information as appropriate.
Assessing the Group’s accounting policy as
set out within Note 1(K) for compliance with
the requirements of AASB 2 Share-based
Payment.
Assessing the adequacy of the disclosures
included in the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s directors’ report for the year ended 30 June 2024 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
(i) the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
(ii) the consolidated entity disclosure statement that is true and correct and is free of
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 32 to 36 of the directors’ report for the
year ended 30 June 2024. In our opinion, the Remuneration Report of Alto Metals Limited, for the
year ended 30 June 2024, complies with section 300A of the Corporations Act 2001.
ALTO METALS LIMITED
ABN 62 159 819 173
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALTO METALS LIMITED
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.
PITCHER PARTNERS BA&A PTY LTD
PAUL MULLIGAN
Executive Director
Perth, 30 September 2024
ADDITIONAL ASX INFORMATION
Alto Metals Limited | 2024 Annual Report
71
Additional information required by the ASX Listing Rules and not shown elsewhere in the report is as follows. The
information is current as at 12 September 2024.
(a)
Twenty largest holders of quoted equity securities
Position
Holder Name
Holding
% IC
1
WINDSONG VALLEY PTY LTD
107,155,416
14.85%
2
DEUTSCHE BALATON AKTIENGESELLSCHAFT
65,200,000
9.04%
3
HORIZON GOLD LIMITED
60,764,746
8.42%
4
GS GROUP AUSTRALIA PTY LTD
57,390,520
7.95%
5
LION SELECTION GROUP LTD
19,230,769
2.67%
6
CITICORP NOMINEES PTY LIMITED
18,585,548
2.58%
7
SINOTECH (HONG KONG) CORPORATION LIMITED
17,291,250
2.40%
8
OLGEN PTY LTD
15,899,998
2.20%
9
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
12,456,493
1.73%
10
SILVERLIGHT HOLDINGS PTY LTD
11,182,781
1.55%
11
BNP PARIBAS NOMINEES PTY LTD
9,967,736
1.38%
12
ATLANTIC CAPITAL PTY LTD
9,750,000
1.35%
13
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9,456,742
1.31%
14
GREATCITY CORPORATION PTY LTD
8,542,735
1.18%
15
WERSMAN NOMINEES PTY LTD
8,243,589
1.14%
16
CROWNLUXE INVESTMENT LTD
7,500,000
1.04%
17
DELPHI UNTERNEHMENSBERATUNG
AKTIENGESELLSCHAFT
6,872,222
0.95%
18
NETWEALTH INVESTMENTS LIMITED
6,415,467
0.89%
19
HARDROCK CAPITAL PTY LTD
6,160,000
0.85%
20
WERSMAN NOMINEES PTY LTD
5,343,589
0.74%
Total
463,409,601
64.23%
Total issued capital - selected security class(es)
721,523,172
100.00%
ADDITIONAL ASX INFORMATION
Alto Metals Limited | 2024 Annual Report
72
(b)
Substantial Shareholders
The names of the substantial shareholders and the number of shares in which they have a relevant interest are:
Holder Name
Holding
Balance
% IC
WINDSONG VALLEY PTY LTD
107,155,416
14.85%
DEUTSCHE BALATON AKTIENGESELLSCHAFT
65,200,000
9.04%
HORIZON GOLD LIMITED
60,764,746
8.42%
GS GROUP AUSTRALIA PTY LTD
57,390,520
7.95%
(c)
Distribution of equity securities
Holding Ranges
Holders
Total Units
% Issued
Share Capital
above 0 up to and including 1,000
325
143,428
0.02%
above 1,000 up to and including 5,000
436
1,165,285
0.16%
above 5,000 up to and including 10,000
279
2,287,774
0.32%
above 10,000 up to and including 100,000
665
28,236,984
3.91%
above 100,000
456
689,689,701
98.59%
Totals
2,231
721,523,172
100.00%
The number of fully paid ordinary shareholdings held in less than marketable parcels is 892 (based on a share price
of $0.062).
(d)
Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(e)
Unquoted securities
Nil
(f)
Corporate governance statement
The Directors support and adhere to the principles of corporate governance, recognising the need for the highest
standard of corporate behaviour and accountability. Please refer to the corporate governance statement and the
Appendix 4G released to ASX and posted on the Company website. The Directors are focused on fulfilling their
responsibilities individually, and as a Board, for the benefit of all the Company’s stakeholders. That involves
recognition of, and a need to adopt, principles of good corporate governance. The Board supports the guidelines on
the “Principles of Good Corporate Governance and Recommendations – 4th Edition” established by the ASX
Corporate Governance Council. Given the size and structure of the Company, the nature of its business activities,
the stage of its development and the cost of strict and detailed compliance with all of the recommendations, it has
adopted a range of modified systems, procedures and practices which enables it to meet the principles of good
corporate governance. The Company’s practices are mainly consistent with those of the guidelines and where they
do not correlate with the recommendations in the guidelines the Company considers that its adopted practices are
appropriate to it.
ADDITIONAL ASX INFORMATION
Alto Metals Limited | 2024 Annual Report
73
TENEMENT REPORT
As at 30 June 2024
Alto Metals Ltd and its 100% owned subsidiary, on a consolidated basis at 30 June 2024
Tenement
Location
Interest
Registered Holder
Lease Status
E57/1029
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1030
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1031
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1033
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1044
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1072
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1101
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1108
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1153
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1228
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
E57/1402
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Application
M57/646
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/647
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/650
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/651
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/652
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/658
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
M57/663
Sandstone, WA
-
Sandstone Exploration Pty Ltd
Application
M57/665
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
P57/1378
Sandstone, WA
100%
Sandstone Exploration Pty Ltd
Granted
P57/1529
Sandstone, WA
Sandstone Exploration Pty Ltd
Application