Annual
Report
2022
Astral Resources NL
(Formerly Anglo Australian
Resources NL) and its
controlled entities
ABN 24 651 541 976
Contents
Contents
Corporate Directory ............................................................................................................................................................. 2
Review of Operations .......................................................................................................................................................... 3
Directors’ Report ............................................................................................................................................................... 26
Auditor’s Independence Declaration ................................................................................................................................. 42
Independent Auditor’s Report ............................................................................................................................................ 43
Consolidated Statement of Profit or Loss and Other Comprehensive Income .................................................................. 47
Consolidated Balance Sheet ............................................................................................................................................. 48
Consolidated Statement of Cash Flows ............................................................................................................................ 49
Consolidated Statement of Changes in Equity .................................................................................................................. 50
Notes to the Consolidated Financial Statements ............................................................................................................... 51
Director’s Declaration ........................................................................................................................................................ 77
ASX Additional Information ............................................................................................................................................... 78
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
1
Corporate Directory
Corporate Directory
This financial report includes the consolidated financial statements and notes of Astral Resources NL (formerly Anglo Australian
Resources NL) (Astral or the Company) and its controlled entities (the Group). The Group’s functional and presentation currency is
AUD ($).
A description of the Group’s operations and of its principal activities is included in the review of operations and activities in the
Directors’ report. The Directors’ Report is not part of the Financial Report.
Directors
Leigh Warnick ‐ Non‐Executive Chairman
Marc Ducler ‐ Managing Director
Justin Osborne ‐ Non‐Executive Director
David Varcoe ‐ Non‐Executive Director
Peter Stern – Non‐Executive Director
Company Secretary
Brendon Morton
Registered Office & Principal Place of Business
Suite 2, 6 Lyall Street
South Perth WA 6151
Telephone: +61 8 9382 8822
E‐mail: info@astralresources.com.au
Website: www.astralresources.com.au
Share Registry
Automic Registry Services
Level 5, 191 St Georges Terrace
Perth WA 6000
Telephone: +1300 288 664
Auditors
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellangonga Tower 2
5 Spring Street
Perth WA 6000
Bankers
National Australia Bank
197 St George’s Terrace
Perth WA 6000
Solicitors
Thomson Geer
Level 27, Exchange Tower
2 The Esplanade
Perth WA 6000
Stock Exchange
Australian Securities Exchange Limited
Level 40, Central Park
152‐158 St George’s Terrace
Perth WA 6000
ASX Code: AAR
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Review of Operations
Astral Resources NL’s (formerly Anglo Australian Resources NL) (Astral or the Company) principal activity during the financial year
was progressing the Company’s 100% owned Mandilla Gold Project (Mandilla).
Mandilla was the subject of significant exploration and resource definition effort during the financial year, with more than 55km of
air core (AC) reverse circulation (RC) and diamond drilling completed. On 18 January 2022, the Company announced an updated JORC
2012 Mineral Resource Estimate (MRE) of 24Mt at 1.0g/t Au for 784koz for Mandilla.
Mineralisation at Mandilla has to date been identified over a strike length of approximately 3.3km, inclusive of the cornerstone Theia
deposit, Iris and Eos deposits and the newly discovered Hestia deposit. Work during the second half of the year was focused on
Resource in‐fill and extensional drilling as the Company looks to increase its MRE to one million ounces of gold and beyond.
In February 2021, Astral entered into an earn‐in and joint venture agreement with AuKing Mining Limited (AKN), providing AKN with
the right to earn up to a 75% interest in Koongie Park by completing exploration expenditure of A$3 million over a 3‐year period.
Through the earn‐in and joint venture agreement, Astral was able to avoid significant expenditure commitments in maintaining the
Koongie Park tenure. AKN completed the required earn‐in expenditure commitments during the financial year and, accordingly, holds
a 75% interest in the Koongie Park Joint Venture. The Company continues to hold the gold and platinum group element (PGE) rights
with respect to the Koongie Park tenure.
During the financial year the Company continued to implement and maintain the necessary COVID‐19 protocols to minimise the risk
to employees, contractors, and the communities in which the Company operates. The Company has managed to advance its
exploration and evaluation activities without disruption but continues to monitor the latest advice and directives from the State
Government and relevant health authorities.
Mandilla Gold Project
Astral – 100%
Mandilla is situated in the northern Widgiemooltha greenstone belt in the western part of the Kalgoorlie geological domain, some
70 kilometres south of Kalgoorlie, Western Australia, a significant gold mining centre. The location of Mandilla in relation to Kalgoorlie
and other nearby gold projects is set out in Figure 1.
The Mandilla Gold Project includes the Theia, Iris and Eos deposits as well as the recently discovered Hestia prospect.
Gold mineralisation at Theia and Iris is comprised of structurally controlled quartz vein arrays and hydrothermal alteration close to
the western margin of the Emu Rocks Granite and locally in contact with sediments of the Spargoville Group (Figure 2).
Significant NW to WNW‐trending structures along the western flank of the Project are interpreted from aeromagnetic data to cut
through the granitic intrusion and are considered important in localising gold mineralisation at Theia, which now has a mineralised
footprint extending over a strike length of more than 1.5km
A second sub‐parallel structure hosts lesser gold mineralisation at the Iris deposit. The mineralised footprint at Iris extends over a
strike length of approximately 700 metres, combining with Theia to outline a mineralised zone in excess of 2.2 kilometres in strike
length.
At Eos, located further to the south‐east, a relatively shallow high‐grade mineralised palaeochannel deposit has been identified.
Mineralisation at the new Hestia prospect, approximately 500 metres west of Theia, is hosted at a sheared mafic/sediment contact
interpreted to be part of the major north‐south trending group of thrust faults known as the Spargoville shear corridor. Mineralisation
at Hestia is present in a different geological setting to the primary mineralisation at Theia and Iris and remains open down dip and
along strike.
Locally, the Spargoville shear corridor hosts the historically mined Wattle Dam gold mine (266koz at 10.6g/t Au) and, further to the
north, the Ghost Crab/Mt Marion mine (>1Moz).
Mandilla is covered by existing mining leases which are not subject to any third‐party royalties other than the standard WA
Government gold royalty.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
Figure 1 – Mandilla Project location map
Image 1 – Diamond drilling at Mandilla
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Figure 2: Mandilla local area geology (including significant recent intercepts).
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
Mineral Resource Estimate (MRE)
On 18 January 2022, the Company announced an updated JORC 2012 Mineral Resource Estimate (MRE) of 24Mt at 1.0g/t Au for
784koz of contained gold, encompassing the cornerstone Theia and Iris deposits, and an inaugural MRE at the Eos discovery. The
MRE was prepared by independent consultant Cube Consulting in accordance with the JORC Code (2012 Edition).
This represented the third MRE published for Mandilla within eight months, demonstrating the Company’s ability to continue to grow
its Mineral Resource inventory as it progresses its strategy to develop a long‐term gold business in the Kalgoorlie region.
The MRE was estimated using a 0.39g/t Au cut‐off and is constrained within pit shells using a gold price of AUD$2,500 per ounce
(consistent with the maiden MRE) (Table 1).
Table 1 – Mandilla Mineral Resource Estimate (January 2022)
Mineral Resource Estimate for the Mandilla Gold Project
(Cut‐Off Grade >0.39g/t Au)
Classification
Indicated
Inferred
Total
Tonnes (Mt)
Grade (g/t)
Ounces (koz)
10
14
24
1.0
1.0
1.0
331
453
784
The preceding statement of Mineral Resources conforms to the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric
tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures. Total Mineral
Resources are constrained within $2,500/oz optimised pit shells.
Table 2 – MRE (January 2022) Grade and tonnage by source
Deposit
Classification
Tonnes (Mt)
Grade (g/t)
Ounces (koz)
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Theia
Iris
Eos
Total
10
9.3
19
0.5
4.0
4.4
0.3
0.3
24
1.0
1.1
1.1
0.7
0.8
0.8
1.2
1.2
1.0
320
338
658
11
104
115
11
11
784
All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate
significant figures.
Table 3 – MRE (January 2022) Grade and tonnage by cut-off grade
Cut‐off grade (g/t Au)
Tonnes (Mt)
Grade (g/t)
Ounces (koz)
0.30
0.35
0.39
0.40
0.45
0.50
28
26
24
24
21
19
0.9
1.0
1.0
1.0
1.1
1.2
831
807
784
781
752
721
All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate
significant figures.
The locations of the optimised pit shells based on a gold price of AUD$2,500 per ounce are set out in the plan view in Figure 3 below.
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Figure 3 – Optimised pit shell on local area geology (GxM represents gram-metres)
A summary of information material to the understanding of the MRE was provided in the ASX announcement dated 18 January 2022,
in compliance with the requirements of ASX Listing Rule 5.8.1.
Theia Deposit
Theia is the main deposit at Mandilla, representing 84% of the reported MRE. The total MRE at Theia is 19Mt at 1.1g/t Au for 658koz
of contained gold. Since the previous MRE (August 2021), the number of contained gold ounces interpreted at Theia increased by
17%, based largely on the inclusion of assays from approximately 12,000 metres of new drilling.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
Figure 3 below shows the Mineral Resource for Theia within the optimised pit shell in cross‐section.
Figure 4 – Theia cross-section (Section 1)
Iris Deposit
The Mineral Resource at Iris is 4Mt at 0.8g/t Au for 115koz of contained gold. Since the previous MRE was reported (August 2021),
assays from an additional 3,000 metres of drilling were included in the January 2022 MRE.
Section 2, as illustrated in Figure 4 below, shows Iris in cross‐section.
The Mineral Resources identified on this section demonstrate the high‐grade zone that is interpreted to be associated with the
sediment/intrusive contact.
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Eos Deposit
Figure 5 – Iris cross-section (Section 2)
At Eos, previously identified mineralisation was followed up with a modest RC drilling program consisting of 11 holes for 950 metres
reported in August 2021. This successful program was expanded, with a further 36 holes drilled for a total of 3,626 metres in
December 2021.
A maiden Inferred Mineral Resource of 0.3Mt at 1.2g/t Au for 11koz of contained gold was declared at Eos. Figure 5 below shows the
same oblique long projection of Eos as previously reported to the ASX on 15 December 2021.
Drilling at Eos has been relatively wide spaced (40m x 40m). Further Resource in‐fill and extensional drilling has since been completed.
Figure 6 – Eos oblique long projection (Section 3)
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
Metallurgical Testwork
On 6 June 2022, the Company announced the results of the second phase of metallurgical testwork. Metallurgical samples were
collected from diamond drill hole MDRCD512. This hole was drilled as a HQ diamond drill‐hole for metallurgical test purposes to a
down hole depth of 351.71 metres. The primary purpose of the hole was to provide sufficient metallurgical sample to conduct
metallurgical test work to:
confirm crushing and grinding properties;
confirm gold recovery sensitivity to grind size; and
determine reagent consumptions from leaching test‐work conducted with saline water recovered from the immediate area.
The gold assay results of MDRCD512 were released on 22 February 2022 and included best intercepts of:
15.05 metres at 1.46g/t Au from 127.1 metres; and
45.74 metres at 0.94g/t Au from 149 metres.
Figure 7 below sets out the location of MDRCD512 in plan view. In examining the core, several instances of coarse visible gold were
observed (refer to images below).
Figure 7 – Mandilla local area geology showing location of MDRCD512
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Image 2 – Visible gold in MDRCD512 at 75m
Image 3 – Visible gold in MDRCD512 at 326m
The results of the Phase 1 testing were announced during the previous financial year on 28 January 2021. Metallurgical composites
from MDRCD151, MDRCD228 and MDRCD236 were created and subjected to a standard suite of metallurgical tests.
The Phase 1 testing, which was conducted in Perth tap water, demonstrated very high gold recoveries, fast leach kinetics and low
reagent consumptions. They also demonstrated an insensitivity to grind size when coarsening from 75µm to 106µm.
The results from phase 1 are summarised in Table 4 below1.
Table 4 – Phase 1 Metallurgical Testwork
PHASE 1 ‐ MANDILLA GOLD PROJECT TESTWORK PROGRAM ‐ GRAVITY / DIRECT CYANIDE LEACH TESTWORK
SUMMARY
Comp ID
Grind Size
P80(µm)
OXIDE
OXIDE
OXIDE
FRESH
FRESH
FRESH
FR VAR 1
FR VAR 2
FR VAR 2
75
106
106
75
106
106
106
75
106
Head Au Grade (g/t)
Au Extraction (%)
Assay
Calc.
0.68
0.68
0.68
0.58
0.58
0.58
1.40
0.23
0.23
0.92
0.96
1.35
1.24
0.49
0.92
0.95
0.49
0.92
% of Assay
Grade
135%
141%
199%
214%
84%
159%
68%
213%
400%
Grav 4‐hr
8‐hr
48‐hr
68.8
96.9 96.9
71.1
96.3 97.0
73.7
95.4 96.5
92.6
98.6 99.2
71.4
93.0 94.4
79.2
94.6 95.4
81.6
96.6 96.6
80.7
94.6 95.8
66.3
94.5 95.5
98.4
98.4
98.2
99.2
95.9
97.8
97.4
95.8
97.3
Tail Au
Grade
(g/t)
Reagents
(kg/t)
NaCN
Lime
0.02
0.02
0.03
0.01
0.02
0.02
0.03
0.03
0.02
0.32
0.21
0.25
0.29
0.29
0.25
0.29
0.25
0.23
0.32
0.21
0.22
0.24
0.23
0.18
0.29
0.14
0.23
1 - Refer to ASX Announcements dated 28 January 2021
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
The Phase 2 program tested recovery properties at increasing grind sizes of 125µm, 150µm and 212µm. The results demonstrate the
unique metallurgical properties of the Mandilla ore, with outstanding gold recoveries and exceptionally fast leach kinetics
maintained, even at 212µm, as set out in the table below. Interestingly the calculated head grades, representing total gold in the
samples, all reported higher grades than the primary drill core gold assay grades. This suggests the presence of significant coarse gold
in the mineralisation which is inherently difficult to assay in drill core and provides upside on the mineral resource estimates.
Additionally, the Phase 2 testing was completed using saline water from a local bore field. The results continue to demonstrate low
cyanide consumption and moderate lime consumption which is typically expected for saline water from the Goldfields region.
Table 5 – Phase 2 Metallurgical Testwork – MDRCD512
PHASE 2 ‐ MANDILLA GOLD PROJECT TESTWORK PROGRAM ‐ GRAVITY / DIRECT CYANIDE LEACH TESTWORK SUMMARY
Comp ID
Grind Size
P80(µm)
OXIDE
OXIDE
OXIDE
FRESH
FRESH
FRESH
125
150
212
125
150
212
Tail Au
Grade
(g/t)
Reagents
(kg/t)
NaCN
Lime
Head Au Grade (g/t)
Au Extraction (%)
Assay
Calc.
0.39
0.39
0.39
0.63
0.63
0.63
0.52
0.75
1.23
8.53
1.10
0.70
% of Assay
Grade
132%
191%
314%
Grav 4‐hr
8‐hr 24‐hr
47.7
97.1 97.1
60.8
96.0 96.9
61.8
96.5 97.1
1354%
93.2
98.6 98.9
175%
110%
87.1
96.4 97.1
72.5
91.9 91.9
98.5
98.7
98.8
99.5
97.7
94.9
0.01
0.02
0.02
0.06
0.03
0.04
0.35
0.35
0.35
0.21
0.30
0.31
4.29
4.20
4.14
2.71
2.68
2.66
Bond abrasion index, Bond ball mill index and Bond Rod mill index determinations were also carried out on numerous composites of
oxide and fresh samples. The results are summarised below:
Table 6 – Phase 2 Comminution Testwork – MDRCD512
PHASE 2 MANDILLA GOLD PROJECT TESTWORK PROGRAM ‐ COMMINUTION TESTWORK SUMMARY
Comp ID
COMP 1
COMP 2
COMP 3
COMP 4
Material Type
Bond Ai
BBWi (kWhr/t)
RBWi (kWhr/t)
OXIDE
FRESH
FRESH
FRESH
0.4174
0.4618
0.5176
0.5129
11.9
14.6
12.1
12.5
17.3
21.1
18.0
20.6
The comminution results indicate the material to be abrasive although well suited to conventional crushing and grinding circuit
configuration.
Importantly, the outstanding gold recoveries being achieved at a coarse grind size of 212µm would provide for lower capital and
operating costs for Mandilla ore under the development scenarios considered.
EXPLORATION
Summary
The Company completed a significant amount of drilling throughout the year, with a total of 55,768 metres completed at Mandilla.
This included 20,917 metres of AC drilling, 23,471 metres of RC drilling and 3,396 metres of diamond drilling. The drill programs
focused on the three deposits at Mandilla, being Theia, Iris and Eos, as well as the recently discovered Hestia prospect (refer to Figure
2).
The January 2022 MRE as discussed above, included the results of approximately 12,000 metres of additional drilling as compared to
the August 2021 MRE.
On completion of an ongoing diamond drilling program, the Company will update the Mandilla MRE. This is expected to occur in the
December Quarter 2022. The updated MRE will include the results of more than 44,000 metres of additional drilling.
To 30 June 2022, across a number of drilling campaigns, the Company has completed more than 112,500 metres of drilling at
Mandilla. This represents a significant investment in exploration drilling and demonstrates the Company’s belief in the geological
potential of Mandilla.
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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29 July 2021
On 29 July 2021, the Company announced the results from 51 RC holes for an aggregate of 7,071 metres of drilling and two diamond
holes for 584.5 metres of drilling. The results relate to drill samples submitted for assay from February to April 2021.
At Theia, assay results were returned for 21 RC holes (including a 75 metre RC pre‐collar) for an aggregate 3,052 metres and two
diamond holes for an aggregate 584.5 metres. Best results included:
64.57 metres at 3.49g/t Au from 190 metres, 14.39 metres at 2.89g/t Au from 169.37 metres and 13.8 metres at 0.91g/t
Au from 139.7 metres in MDRCD377;
30 metres at 4.76g/t Au from 84 metres in MDRC433;
37 metres at 3.07g/t Au from 89 metres and 20 metres at 1.15g/t Au from 38 metres in MDRC426;
39 metres at 1.23g/t Au from 141 metres, 14 metres at 0.63g/t Au from 119 metres and 10 metres at 0.60g/t Au from 102
metres in MDRC427; and
34 metres at 1.15g/t Au from 105 metres in MDRC438;
At Iris, assay results were returned for 27 RC holes (including two RC pre‐collars) for an aggregate 3,554 metres. Best results included:
10 metres at 1.30g/t Au from 86 metres in MDRC394;
7 metres at 1.68g/t Au from 68 metres in MDRC374;
8 metres at 1.03g/t Au from 131 metres in MDRC387; and
3 metres at 2.56g/t Au from 82 metres in MDRC385
26 August 2021
On 26 August 2021, the Company announced the results from 21 RC holes for an aggregate of 2,432 metres of drilling. The results
related to drill samples submitted for assay from February to April 2021.
At Eos, historic mineralisation was followed up with 11 RC drill‐holes for a total of 950 metres. The mineralisation is located within
in‐situ clays below the base of transported material. Best results included:
3 metres at 8.62g/t Au from 51 metres, including 1 metre at 25.47g/t Au from 52 metres in MDRC402;
4 metres at 3.43g/t Au from 52 metres, including 1 metre at 5.91g/t Au from 53 metres in MDRC413;
4 metres at 3.14g/t Au from 55 metres, including 1 metre at 11.76g/t Au from 55 metres in MDRC406; and
4 metres at 2.88g/t Au from 51 metres, including 1 metre at 8.51g/t Au from 52 metres in MDRC414.
At Iris, assay results were returned for 7 RC holes for an aggregate 950 metres. Best results included:
12 metres at 1.52g/t Au from 96 metres and 16 metres at 0.66g/t Au from 59 metres in MDRC395; and
12 metres at 1.29g/t Au from 47 metres and includes 1 metre at 11.33g/t Au from 57 metres in MDRC388.
27 September 2021
On 27 September 2021, the Company announced the results from 11 diamond drill holes for an aggregate 1,889 metres of drilling.
Several geotechnical holes were drilled as part of this diamond drilling campaign, which were sampled sparingly. MDGT004 was
drilled on a 220 azimuth (ie, drilling in a south‐westerly direction) and was designed to test the rock properties of the proposed
eastern pit wall.
Assay results from MDGT004 included:
1.4 metres at 28.03g/t Au from 165 metres including 0.7 metres at 44.5g/t and 2.41 metres at 2.44g/t Au from 195.79m
in MDGT004.
In‐fill drilling at Theia returned best results of:
15.61 metres at 1.22g/t Au from 111.70 metres and 18.99 metres at 0.56g/t Au from 48.23 metres in MDRCD430; and
7.3 metres at 0.95g/t Au from 62.75 metres, 6.26 metres at 1.30g/t Au from 98.96 metres and 30.7 metres at 0.43g/t Au
from 119.80 metres
At Iris, where two diamond drill‐holes were drilled, best results included:
19.5 metres at 1.11g/t Au from 75.90 metres in MDRCD374; and
10.05 metres at 1.75g/t Au from 195.50 metres and 9.85 metres at 1.33g/t Au from 169.50 metres in MDRCD375.
6 October 2021
On 6 October 2021, the Company announced the results from 36 RC holes for an aggregate of 4,661 metres of drilling. These results
related to drill samples submitted from the RC program which commenced during August 2021.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
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Review of Operations
The RC drilling program encompassed both in‐fill drilling of the northern extent of Theia (17 RC holes for an aggregate 1,879 metres)
and extensional drilling of the south‐east extension of Theia (14 RC holes for an aggregate 2,046 metres).
The in‐fill drilling of the northern extent of Theia returned best results of:
8 metres at 10.01g/t Au from 64 metres in MDRC452;
29 metres at 1.00g/t Au from 18 metres in MDRC455;
28 metres at 0.92g/t Au from 89 metres in MDRCD460; and
19 metres at 1.26g/t Au from 30 metres in MDRC462.
The extensional RC drilling of the south‐east extension of Theia returned best results of:
17 metres at 1.43g/t Au from 108 metres in MDRC466;
34 metres at 1.46g/t Au from 64 metres and 28 metres at 1.23g/t Au from 118 metres in MDRC472;
61 metres at 1.14g/t Au from 77 metres and 10 metres at 3.36g/t Au from 59 metres in MDRC473; and
49 metres at 0.94g/t Au from 107 metres in MDRC476.
3 November 2021
On 3 November 2021, the Company announced the results from 45 RC holes for an aggregate of 6,090 metres of drilling. These results
related to drill samples submitted from the RC program which commenced during August 2021. Three lines of RC drilling, totalling 21
holes for an aggregate of 2,950 metres, were completed to test the possible extension of the Theia Mineral Resource to the south.
The extensional drilling to the south of Theia returned best results of:
8 metres at 3.07g/t Au from 34 metres and 17 metres at 1.02g/t Au from 78m in MDRC490;
22 metres at 0.67g/t Au from 122 metres in MDRC492;
8 metres at 1.31g/t Au from 15 metres and 6 metres at 2.23g/t Au from 32 metres in MDRC499;
7 metres at 6.02/t Au from 73 metres and 2 metres at 12.52g/t Au from 158 metres in MDRC500; and
15 metres at 1.56g/t Au from 79 metres in MDRC508.
These results, over three lines of drilling, have demonstrated the consistent presence of mineralisation along a strike length of 160
metres to the south of the currently interpreted Theia Mineral Resource.
Assay results from drilling at Eos were very encouraging, with the previously identified flat‐lying, high‐grade mineralised zone
increasing in size.
Noteworthy mineralisation was identified in eight of the eleven holes drilled, with best results including:
3 metres at 5.85g/t Au from 52 metres including 1 metre at 14.24g/t Au from 52 metres in MDRC526;
6 metres at 2.23g/t Au from 53 metres including 1 metre at 8.25g/t Au from 53 metres in MDRC521;
2 metres at 3.27g/t Au from 49 metres including 1 metre at 5.93g/t Au from 49 metres in MDRCD527; and
3 metres at 1.38g/t Au from 54 metres in MDRC520;
15 December 2021
On 15 December 2021, the Company announced results from 56 RC drill holes for an aggregate of 6,720 metres of drilling. These
results related to drill samples submitted from the RC program which commenced during August 2021.
At Eos, 36 RC drill‐holes were completed for an aggregate of 3,626 metres.
Drilling at Eos continues to define a flat‐lying, high‐grade zone of mineralisation, with the new results reported below also
demonstrating the potential for a thicker lens of mineralisation than previously interpreted. Best results included:
12 metres at 4.39g/t Au from 52 metres in MDRC545;
18 metres at 1.30g/t Au from 48 metres in MDRC544;
7 metres at 2.79g/t Au from 48 metres in MDRC551; and
4 metres at 3.97g/t Au from 52 metres in MDRC554;
Nine RC drill‐holes for an aggregate of 1,470 metres were drilled at Iris. The drilling was designed to test both the sediment‐ intrusive
contact and to extend known mineralisation at Iris to the north. Best results included:
40 metres at 1.19g/t Au from 142 metres in MDRC562;
16 metres at 0.95g/t Au from 64 metres in MDRCD560;
16 metres at 0.64g/t Au from 72 metres, 7 metres at 0.64g/t Au from 95 metres and 5 metres at 1.11g/t Au from 136
metres in MDRC541; and
18 metres at 0.56g/t Au from 76 metres in MDRC542.
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
22 February 2022
On 22 February 2022, the Company announced results of the regional air‐core drilling program completed in December 2021. The
results identified significant gold anomalism across all three drill lines completed to the south‐east of Eos, with encouraging first‐pass
results including:
28 metres at 1.38g/t Au from 46 metres in MDAC276;
9 metres at 2.30g/t Au from 50 metres in MDAC272;
14 metres at 0.95g/t Au from 46 metres in MDAC278; and
4 metres at 1.61g/t Au from 49 metres in MDAC274.
Hole MDRCD512 was drilled as a HQ diamond drill‐hole for metallurgical test purposes to a down‐hole depth of 352 metres.
MDRCD512 was part of a fifteen‐hole diamond drilling program.
The results of MDRCD512 were released on 18 January 2022 as part of the January 2022 MRE, with best gold results including:
15.05 metres at 1.46g/t Au from 127.1 metres; and
45.74 metres at 0.94g/t Au from 149 metres
3 May 2022
On 3 May 2022, the Company reported assay results from diamond drilling completed during late 2021 at Mandilla. The diamond
drilling program consisted of 15 diamond drill‐holes for a total of 3,476 metres.
The diamond drilling program at Theia included eight diamond holes for a total of 1,959 metres. This program was very successful
with the total gram x metres (g.m) across all eight holes averaging 114 g.m. Significant results included:
25 metres at 10.57g/t Au from 206 metres in MDGT007;
32.3 metres at 5.44g/t Au from 175.7 metres and 15.07 metres at 2.24g/t Au from 269.93 metres in MDRCD511;
4.6 metres at 2.61g/t Au from 175.7 metres and 16 metres at 1.34g/t Au from 212.2 metres in MDRCD513;
16.55 metres at 1.16g/t Au from 93.5 metres and 43 metres at 1.22g/t Au from 126 metres in MDRCD514; and
17.4 metres at 1.95g/t Au from 140.6 metres in MDRCD515.
The result from geotechnical drill‐hole MDGT007 was of particular significance in that it intersected a spectacular high‐grade intercept
of 25 metres at 10.57 g/t Au from 206 metres in an area with no previously identified mineralisation (Figure 3). This represents a
significant opportunity for interpretation of additional high‐grade mineralisation situated within the optimised resource pit shell in
an area of limited drilling and no previously identified mineralisation (Figure 8).
These results will be incorporated into the updated MRE, planned for release during the December 2022 Quarter.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
15
Review of Operations
5 July 2022
Figure 8 – Theia cross‐section
On 5 July 2022, subsequent to the reporting period, results were released for an air‐core (AC) drilling program completed at Eos. The
program was designed to test for extensions to the deposit as well as in‐fill to better define the higher‐grade palaeochannel
mineralisation.
In total 196 AC holes were completed for a total of 10,621 metres, with best results including:
4 metres at 4.00g/t Au from 49 metres in MDAC444;
8 metres at 3.51g/t Au from 48 metres in MDAC425;
8 metres at 3.40g/t Au from 53 metres in MDAC442;
4 metres at 3.39g/t Au from 48 metres in MDAC483;
8 metres at 3.09g/t Au from 48 metres in MDAC427;
5 metres at 2.74g/t Au from 51 metres in MDAC457;
4 metres at 2.63g/t Au from 49 metres in MDAC443;
8 metres at 2.48g/t Au from 49 metres in MDAC471;
8 metres at 2.19g/t Au from 50 metres in MDAC426;
8 metres at 2.15g/t Au from 48 metres in MDAC428;
8 metres at 2.04g/t Au from 46 metres in MDAC497;
8 metres at 1.92g/t Au from 49 metres in MDAC458; and
8 metres at 1.83g/t Au from 49 metres in MDAC501.
These results will be incorporated into the updated MRE, planned for release during the December 2022 Quarter.
13 July 2022
The Company completed an RC program consisting of 58 holes for a total of 9,295 metres at a greenfields target (named Hestia)
located approximately 500 metres to the west of Theia. Drilling was conducted along a strike length of approximately 1 kilometre
with drill line spacing of approximately 160 metres.
16
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
After the reporting period, on 13 July 2022, the Company released assay results received from 38 RC drill‐holes totalling 6,421m, with
best results including:
4 metres at 1.19g/t Au from 60 metres and 4 metres at 1.43 g/t Au from 75 metres and 6 metres at 7.07g/t Au from 107
metres in MDRC616;
1 metre at 26.15g/t Au from 13 metres and 12 metres at 1.07g/t Au from 52 metres in MDRC587;
11 metres at 2.00g/t Au from 90 metres in MDRC606;
2 metres at 5.69g/t Au from 128 metres and 8 metres at 1.37g/t Au from 140 metres in MDRC612;
7 metres at 1.64g/t Au from 131 metres and 5 metres at 2.76g/t Au from 163 metres in MDRC617;
7 metres at 2.25g/t Au from 126 metres in MDRC619;
22 metres at 0.96g/t Au from 60 metres and 7 metres at 1.00g/t Au from 102 metres in MDRC611;
2 metres at 3.03g/t Au from 138 metres in MDRC589; and
3 metres at 1.93g/t Au from 61 metres in MDRC605
Figure 9 – Hestia long projection view (refer Figure 3 for section location)
These results will be incorporated into the updated MRE, planned for release during the December 2022 Quarter.
10 August 2022
On 10 August 2022, subsequent to the reporting period, the Company released assay results from the final 19 holes and 2,861 metres
of the recently completed RC drilling program. This was the second tranche of results, with the first tranche being reported on 13
July 2022, as outlined above.
Of the 19 holes reported, 9 were drilled at Theia for an aggregate 1,153 metres, with this program involving:
4‐holes for 710 metres drilled for in‐fill and extensional purposes; and
5‐holes for 443 metres drilled as pre‐collars to the currently underway diamond drilling program.
Best results include:
4 metres at 24.57g/t Au from 126 metres and 21 metres at 0.76g/t Au from 184 metres in MDRC640 (extensional);
27 metres at 2.00g/t Au from 4 5metres MDRC639 (in‐fill);
12 metres at 1.57g/t Au from 75 metres and 26 metres at 1.18g/t Au from 190 metres in MDRC638 (in‐fill);
19 metres at 0.65g/t Au from 82 metres in MDRC636 (in‐fill); and
10 metres at 0.99g/t Au from 76 metres in MDRCD642 (RC pre‐collar).
A further 10 RC holes totalling 1,708 metres were drilled at Iris to both test for mineralisation and confirm the stratigraphy
immediately to the north‐west of the deposit. MDRC624 returned a best result of 20 metres at 1.42g/t Au from 174 metres.
23 August 2022
On 23 August 2022, subsequent to the reporting period, the Company released assay results from 87 AC drill‐holes for an aggregate
5,248 metres. The results relate to Phase 2 of the AC program of in‐fill and extensional drilling at the Eos palaeochannel deposit.
The Phase 2 AC drill program returned best assay results of:
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
17
Review of Operations
3 metres at 11.85g/t Au from 52 metres in MDAC540;
1 metre at 17.20g/t Au from 52 metres in MDAC513;
1 metre at 12.17g/t Au from 51 metres in MDAC551;
1 metre at 8.69g/t Au from 51 metres in MDAC587;
2 metres at 4.47g/t Au from 48 metres in MDAC515;
3 metres at 4.05g/t Au from 51 metres in MDAC538;
4 metres at 3.84g/t Au from 51 metres in MDAC527;
3 metres at 3.54g/t Au from 53 metres in MDAC539;
4 metres at 3.38g/t Au from 51 metres in MDAC526;
1 metre at 5.58g/t Au from 47 metres in MDAC550;
1 metre at 4.43g/t Au from 52 metres in MDAC573;
1 metre at 4.04g/t Au from 52 metres in MDAC514;
1 metre at 2.23g/t Au from 52 metres in MDAC511;
3 metres at 1.89g/t Au from 50 metres in MDAC509; and
3 metres at 1.41g/t Au from 50 metres in MDAC510.
These results will be incorporated into the updated MRE, planned for release during the December 2022 Quarter.
21 September 2022
On 21 September 2022, subsequent to the reporting period, the Company released the assay results from two diamond drill‐holes
for an aggregate 742.7 metres.
Best results from MDRCD644 including:
16.01 metres at 2.12g/t Au from 157.29 metres;
47.91 metres at 0.74g/t Au from 199.09 metres;
25.18 metres at 2.02g/t Au from 254.62 metres;
16.66 metres at 1.38g/t Au from 311.34 metres;
41.2 metres at 1.71g/t Au from 339.3 metres; and
16.76 metres at 2.64g/t Au from 434.1 metres.
Drill hole MDRCD644 returned a cumulative 283‐gram x metres of gold across several intersections. Visible gold observed at 447.68m
down‐hole, which returned a high‐grade assay of 0.7 metres at 80.22g/t Au. This is the deepest high‐grade intersection reported
from Mandilla to date and significantly extends mineralisation on the western flank of the Theia deposit, which remains open at
depth.
Hole MDRCD634 returned a best result of 16.21 metres at 0.96g/t Au from 335.70 metres.
Diamond drill‐holes MDRCD644 and MDRCD645 were oriented to the south‐east to intersect interpreted north‐east cross‐cutting
structures within the Mineral Resource to help identify any potential effect on primary mineralisation.
These structures were previously observed to be sub‐parallel to historical drilling directions and therefore difficult to identify. To
date, logging of the diamond core has not been able to define these cryptic structures absolutely, though continuity of higher‐grade
mineralisation appears to align parallel to their interpreted orientation.
18
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Figure 10 – Theia long projection view (refer Figure 3 for section location)
As observed in Figure 10, MDRCD644 is a well‐mineralised hole with several intersections combining for a cumulative 283‐gram x
metres of high‐grade gold. This result supports the current MRE and provides potential for further growth in the MRE on the western
flank of the deposit. This drill‐hole also delivered the deepest intersection returned from Mandilla to date, showing the main Theia
deposit remains open at depth with 16.76 metres at 2.64 g/t Au from 434.1 metres, approximately 65 metres below the reported
MRE pit constraints.
Current and Forward Plan
A 17 hole/4,700 metre diamond drilling program at Theia is continuing. The intent of the diamond drilling program is:
to test for gold mineralisation in the western flank of the Theia deposit to assist with Mineral Resource extension; and
to test two interpreted high‐grade gold trends that have been identified, one south trending (‐18°→130°) and the other
north trending (‐25°→310°).
Drill collar locations for the recently completed and upcoming work program are illustrated below in Figure 11.
The current DD program will see three more holes drilled at Theia, three at Hestia and one at Iris. Once complete, the Company will
update the Mandilla MRE, which is expected to be reported in the December Quarter 2022.
An RC program is planned for late in the December Quarter to infill Hestia, infill Theia and test for bed rock mineralisation at Eos.
A diamond drill rig is also expected to mobilise to Feysville in November for a 1,500 metre program to test a number of priority targets
from the ongoing geological review. This will be the first drilling at Feysville since 2019.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
19
Review of Operations
Figure 11 – Drill collar locations for future work program on Mandilla local area geology
20
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Feysville Gold Project – WA
Astral ‐ 100% interest
Feysville is located within the Archean Kambalda Domain in the Norseman‐Wiluna belt of the Eastern Goldfields Province. Significant
gold mineralisation occurs within the belt, including the 70Moz Golden Mile deposit 14km to the north and the St Ives goldfield to
the south. Northern Star Limited’s (ASX:NST) Mt Shea Prospect is immediately to the north of Feysville (refer to Figure 12 below).
Feysville is interpreted to contain upthrust ultramafics, emplaced within a sequence of volcanic sediments, the Black Flag sediment
group, granitic intrusions, mafic basalts, gabbro and andesite as shown in Figure 12. Large major faulting occurs predominately north‐
west, with later cross‐cutting faulting in a north‐east orientation.
Figure 12 - Feysville tenements on local area geology
A maiden JORC Mineral Resource Estimate for Feysville was announced on 8 April 2019. The Mineral Resource Estimate, separately
identifying Indicated and Inferred Resources for cut‐off grades of 0.5, 0.8 and 1.0 g/t Au, is set out in Table 7.
Category
Cut‐off Grade
Tonnage
Grade
Ounces Au
Indicated
0.5 g/t Au cut‐off
0.8 g/t Au cut‐off
1.0g/t Au cut‐off
Inferred
0.5 g/t Au cut‐off
TOTAL
0.8 g/t Au cut‐off
1.0g/t Au cut‐off
0.5 g/t Au cut‐off
0.8 g/t Au cut‐off
1.0g/t Au cut‐off
2,285,000
1,541,000
1,214,000
572,000
416,000
299,000
2,857,000
1,957,000
1,513,000
1.3
1.6
1.8
1.1
1.3
1.4
1.3
1.6
1.7
95,900
80,700
71,400
20,200
17,000
13,600
116,100
97,700
85,000
Table 7: Think Big Global Mineral Resource Estimate.
The Mineral Resource Estimate for the supergene enriched gold mineralisation (which is included within the Global estimate in Table
7) is set out in Table 8.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
21
Review of Operations
Category
Cut‐off Grade
Tonnage
Grade
Ounces Au
Indicated
0.5 g/t Au cut‐off
0.8 g/t Au cut‐off
1.0 g/t Au cut‐off
3.0 g/t Au cut‐off
279,000
250,000
209,000
54,600
2.2
2.4
2.7
5.5
20,100
19,500
13,300
9,800
Table 8: Think Big Supergene Enriched Gold Mineral Resource Estimate (included in Global estimate in Table 7).
Current and Forward Plan
Drilling is planned to commence at Feysville during the current calendar year, on receipt of the necessary approvals. It is expected
that initial exploration will commence with diamond drilling at Think Big to improve the structural understanding of this target.
Following this, both aircore and RC drilling will commence focusing on the higher priority targets in the first instance.
Koongie Park Gold and Base Metals Project ‐ WA
Koongie Park is situated in north‐eastern Western Australia in the highly mineralised Halls Creek region. The Koongie Park project
comprises 10 tenements (two mining leases and eight exploration licences) representing an area of over 500km2.
Joint Venture Agreement (Astral – 20% participating interest)
On 8 February 2021, the Company entered into an earn‐in and joint venture agreement (JVA) with AuKing Mining Limited (AKN)
having the opportunity to earn up to a 75% interest in the Koongie Park Joint Venture (Joint Venture) by funding exploration and
project development study expenditure of $3 million over a three‐year period, via two earn‐in milestones.
AKN met the first earn‐in milestone on 22 November 2021 and met the second earn‐in milestone on 17 January 2022, taking its total
Joint Venture interest to 75%. From that point to the end of the financial year, AKN incurred expenditure of $1,767,324 at Koongie
Park. In order to preserve the 25% participating interest at 30 June 2022, the Company would be required to contribute an amount
of $441,831 to AKN (“Astral JV Contribution”). A liability has been recognised for the Astral JV Contribution as at 30 June 2022.
On 2 September 2022, subsequent to the end of the reporting period, Astral confirmed (by way of a resolution) that, rather than
meet the Astral JV Contribution it would elect to dilute its participating interest down to 20%, effective from 1 July 2022.
Sale and Purchase Agreement
During the Quarter, Astral announced that it had entered into a sale and purchase agreement with AKN, to divest the Company’s
remaining interests in the Koongie Park Base Metals Project, being the 25% Joint Venture Interest and the PMRA interests for total
consideration of A$6 million (the Transaction)2.
The transaction remained subject to the satisfaction of certain conditions precedent, one of which was AKN completing a capital
raising of $7 million (Capital Raising CP). On 26 May 2022, AKN announced that the Transaction had terminated due to inability to
meet the Capital Raising CP3.
The Koongie Park Joint Venture agreement will continue to operate and regulate the conduct of activities at the Koongie Park
copper/zinc project. Astral will continue to hold 100% of the PGE and gold rights with respect to the Koongie Park tenures.
Gold and Precious Metals Rights
Astral retains the right to explore for and develop gold and other precious metals deposits within the Koongie Park project area,
including PGE’s. The Company is currently reviewing opportunities to create value for shareholders from the Koongie Park gold and
precious metals rights, noting that the Company’s ground position abuts the landholding of Pantoro Limited (ASX: PNR) where the
discovery of significant platinum group mineralisation has recently been reported.
2 ASX Announcement 5 April 2022 – AAR to realise A$6m from divestment of Koongie Park
3 ASX Announcement 26 May 2022 – AKN Underwriting Termination and Withdrawal from PGE Acquisition
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ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
During the June 2022 Quarter, the Company submitted POW applications for drilling to test the PGE potential in the ultramafic
formation at Koongie Park.
Image 4 - AKN diamond drilling activities at Sandiego.
Carnilya Hill Gold Project – WA
Astral – 100% of gold rights
Carnilya Hill is located approximately 20 kilometres east‐south‐east of the Company’s Feysville Project and approximately 40
kilometres south‐east of Kalgoorlie, Western Australia.
The Project encompasses four tenements – M26/047‐049 and M26/453, representing an aggregate area of approximately 2.65
square kilometres – with rights to nickel and other minerals held by Mincor Resources NL (ASX: MCR).
A prospect named Hang Glider Hill has been outlined by Lefroy Exploration Limited (ASX: LEX) immediately north of the Carnilya Hill
tenements. The prospect comprises a surface gold geochemical anomaly where a number of gold nuggets have been recovered.
Astral is currently reviewing its options with respect to Carnilya Hill.
Leonora Project
On 10 January 2022, Astral executed an agreement with Ozz Resources Limited (ASX:OZZ) to dispose of its Leonora Base Metals
Project, comprising two exploration licences (E37/1287 and E37/1355). Astral received upfront consideration of $30,000 in cash and
1 million OZZ shares. A further 500,000 OZZ shares will be issued to the Company in the event that OZZ announces a JORC compliant
gold resource of greater than 50,000 ounces or when commercial mining commences.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
23
Review of Operations
Consolidated Mineral Resource Estimate
The Group’s consolidated JORC 2012 Mineral Resource Estimate as at the date of this report is detailed in the table below.
Indicated
Tonnes
(Mt)
14.0
0.6
14.6
Grade
(Au g/t)
Metal
(koz Au)
Tonnes
(Mt)
1.0
1.1
1.1
453.0
20.2
473.2
10.0
2.3
12.3
Inferred
Grade
(Au g/t)
1.0
1.3
1.1
Metal
(koz Au)
331.0
95.6
426.6
Tonnes
(Mt)
24.0
2.9
26.9
Total
Grade
(Au g/t)
1.0
1.3
1.1
Metal
(koz Au)
784.0
115.8
899.8
Project
Mandilla4
Feysville5
Total
Cut‐off grades
The Mineral Resources for Mandilla are reported at a cut‐off grade of 0.39 g/t and Feysville is reported at a cut‐off grade of 0.50 g/t
Au.
Schedule of Mining Tenements
The Company reports the following interests in mining tenements in Western Australia in accordance with ASX Listing Rule 5.20.
Project (Location)
Tenement Number
Mandilla
(Western Australia)
Koongie Park
(Western Australia)
Feysville
(Western Australia)
M15/96
M15/633
E15/1404
M80/276, 277
E80/4389,4766, 4957, 4960
E80/5076, 5087,
E80/5127
E80/5263
P26/3943‐3944
P26/3947‐3951
P26/4051‐4052
P26/4390
Beneficial Percentage
Interest
100% gold rights only
100% gold rights only
100%
Status
Title Registered to
Granted
Widgie Nickel Limited
Astral Resources NL
Astral Resources NL
25%
Granted
Astral Resources NL
100%
Granted
Feysville Gold Pty Ltd
M26/846
‐
Pending
Feysville Gold Pty Ltd
Carnilya Hill
(Western Australia)
M26/47 ‐ 49
M26/453
100% gold rights only
Granted
Mincor Resources NL
4 ‐ Refer to ASX Announcement dated 18 January 2022 – Mandilla Resource Grows Further to 784,000 ounces.
5 ‐ Refer to ASX Announcement dated 8 April 2019 – Maiden Mineral Resource at Feysville & Met Testwork Results
24
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Review of Operations
Compliance Statement
The information in this Report that relates to Estimation and Reporting of Mineral Resources is based on information compiled by Mr
Michael Job, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Job is an independent consultant
employed by Cube Consulting. Mr Job has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Job consents to the inclusion in this
Report of the matters based on the information in the form and context in which it appears.
The information in this Report that relates to exploration targets and exploration results is based on, and fairly represents, information
and supporting documentation compiled by Ms Julie Reid, who is a full‐time employee of Astral Resources NL. Ms Reid is a Competent
Person and a Member of The Australasian Institute of Mining and Metallurgy. Ms Reid has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Ms Reid consents to the inclusion in this Report of the material based on this information, in the form and context in which it appears.
The information in this Report that relates to metallurgical test work for the Mandilla Gold Project is based on, and fairly represents,
information and supporting documentation compiled by Mr Marc Ducler, who is a full‐time employee of Astral Resources NL. Mr
Ducler is a Competent Person and a Member of The Australasian Institute of Mining and Metallurgy. The information that relates to
processing and metallurgy is based on work conducted by ALS Metallurgy Pty Ltd (ALS Metallurgy) on diamond drilling samples
collected under the direction of Mr Ducler and fairly represents the information compiled by him from the completed ALS Metallurgy
testwork. Mr Ducler has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ducler consents to the inclusion in this Report of the
material based on this information, in the form and context in which it appears.
The information in this Report that relates to Mineral Resources for the Feysville Gold Project was first reported in accordance with
JORC 2012 on 8 Apr 2019. The Company confirms that it is not in possession of any new information or data relating to these historical
Mineral Resource estimates that materially impacts on the accuracy or reliability of these historical estimates. The Company also
confirms that all material assumptions and technical parameters underpinning the Resource estimate continue to apply and have not
materially changed.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
25
Directors’ Report
Directors’ Report
Your Director’s present the following report on Astral Resources NL (formerly Anglo Australian Resources NL) and its controlled
entities (referred to as Astral, Company or Group) for the year ended 30 June 2022.
Directors
The names of the Directors in office during the financial year and until the date of this report are as follows.
Name
Leigh Warnick
Marc Ducler
Justin Osborne
Peter Stern
David Varcoe
John Jones
Role
Non‐Executive Chair
Managing Director
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director
Date of Appointment / Resignation
Appointed 23 December 2019
Appointed 23 December 2019
Appointed 18 November 2021
Appointed 28 November 2011
Appointed 28 November 2019
Appointed 9 February 1990 / Retired 16 November 2021
Principal Activities
During the financial year, the principal activities of the Group consisted of exploration at the Company’s 100% owned Mandilla Gold
Project and evaluating its portfolio of tenements and projects in order to identify opportunities to maximise value for shareholders.
There were no significant changes in the nature of the activities of the Group during the year.
Dividends
There were no dividends paid or proposed during the year.
The Consolidated Statement of Profit or Loss and Other Comprehensive Income shows a net loss from continuing operations
attributable to owners of $2,353,412 for the financial year ended 30 June 2022 (2021: loss of $3,669,567).
Significant changes in the state of affairs
During the year, a total of 7,170,855 fully paid ordinary shares were issued, comprising:
Prior to 30 June 2021, the Board determined that the performance conditions attaching to 1,830,780 2020A Performance
Rights and 5,340,075 2020B Performance Rights (together, the Performance Rights) had been met. The Performance Rights
were converted to 7,170,855 fully paid ordinary shares on 7 July 2021.
The following additional securities were issued during the year:
On 19 November 2021, 3,000,000 unquoted options were issued to a nominee of Mr Osborne, in connection with his
appointment as a non‐executive director. The options are exercisable at $0.119 and expire on 19 November 2023. The
options were issued under the Company’s Employee Incentive Plan.
Other than stated above, there were no significant changes in the state of affairs of the Group during the year.
Matters subsequent to the end of the period
On 26 September 2022, the Company announced a renounceable entitlement offer of one (1) new share for every ten (10) shares
held by eligible shareholders at an issue price of $0.065 per new share together with one (1) free‐attaching new option for every two
(2) new shares issued, to raise approximately $3.9 million (before costs) (Entitlement Offer).
On 2 September 2022, Astral confirmed (by way of a board resolution) that it had elected to dilute its participating interest in the
Koongie Park Joint Venture down to 20%, rather than meet the Astral JV Contribution amount of $441,831.
The Company released the following market sensitive ASX Announcements since the end of the financial year.
Date
5‐Jul‐22
13‐Jul‐22
10‐Aug‐22
23‐Aug‐22
20‐Sep‐22
21‐Sep‐22
26‐Sep‐22
Details
Eos AC Results Show Potential for Mandilla Resource Growth
Extensive New Zone of Mineralisation Delineated at Mandilla
Mandilla Set for Resource Growth as Theia Continues to Deliver
More High Grade Results at Eos ahead of MRE Update
AKN: moves to 80% of Koongie Park
Mandilla’s Theia Deposit Extended at Depth
Prospectus – Entitlement Offer
26
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
There are no other matters or circumstances that have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, or the state of affairs of the Group in future financial years.
Likely developments and expected results of operations
The Group will continue its mineral exploration and development activities at Mandilla and Feysville and will continue to evaluate
opportunities to extract value from its other projects.
Environmental regulation
The Group operates within the resources sector and conducts its business activities with respect for the environment while continuing
to meet the expectations of the shareholders, employees and suppliers. The Company’s exploration activities are currently subject
to significant environmental regulation under laws of the Commonwealth and Western Australia. The Group aims to ensure that the
highest standard of environmental care is achieved, and that it complies with all relevant environmental legislation.
As at the date of this report, the Group is not aware of any significant breaches of those environmental requirements.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
27
Directors’ Report
Information on directors
Leigh Warnick
Qualifications
Non‐Executive Chairman, Independent
B.A, LL.B, LL.M.
Appointed
23 December 2019
Experience
Mr Warnick is an experienced corporate and mining lawyer and a recognised expert in corporate
governance. Mr Warnick was formerly a partner of the law firms now known as King & Wood
Mallesons and Ashurst. Mr Warnick now practises as a barrister in Perth. Mr Warnick has 20 years’
experience as a director or chairman of ASX listed companies.
Interest in Shares and Options
Current directorships
Former directorships held in past
three years
Nil.
Nil.
Nil.
Marc Ducler
Managing Director
Qualifications
BSC (Metallurgy) WASM
Appointed
Experience
23 December 2019
Mr Ducler has over 21 years’ experience in the mining industry. For the past 18 years, Mr Ducler
has been in senior operational management roles with GoldFields, BHP, Fortescue Metals, Mineral
Resources and Roy Hill. Mr Ducler’s most recent role was as Managing Director of Egan Street
Resources Limited (a gold exploration and near‐term developer), until its successful takeover by
Silver Lake Resources Limited (ASX: SLR).
Interest in Shares and Options
Shares – 4,893,680
Performance Rights (Incentive) – 1,830,780
Current directorships
Nil.
Former directorships held in past
three years
Egan Street Resources Limited (ASX: EGA) – Managing Director (resigned 28‐Nov‐19)
28
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Information on directors (continued)
Justin Osborne
Non‐Executive Director
Appointed
Experience
18 November 2021
Mr Osborne has over 30 years‐experience as an exploration geologist. He was previously an
Executive Director at Gold Road Resources (ASX: GOR) and was pivotal to the resource
development of the world class Gruyere Gold Deposit (6.6Moz Au). Mr Osborne has also previously
held senior positions on the exploration executive team of Gold Fields Ltd. He was instrumental in
the development of the Damang Superpit project in Ghana and had considerable discovery success
at St Ives Gold Mine, (Athena and Hamlet deposits) among other significant Reserve additions. Mr
Osborne is a Non‐Executive Chairman at Matador Mining Limited (ASX: MZZ) and Non‐Executive
Director of Hamelin Gold Limited (ASX:HMG).
Interest in Shares and Options
Shares – 750,000
Options ‐ $0.119 expiring 19‐Nov‐23 – 3,000,000
Current directorships
Matador Mining Limited (ASX:MZZ) – Non‐Executive Chairman (appointed 2‐Jun‐20)
Hamelin Gold Limited (ASX:HMG) – Non‐Executive Director (appointed 31‐Aug‐21)
Former directorships held in past
three years
Gold Road Resources Limited (ASX:GOR) (resigned 3‐Jun‐21)
Peter Stern
Non‐Executive Director, Independent
Qualifications
Appointed
Experience
BSc (Hons), FAICD
28 November 2011
Mr Stern is a graduate of Monash University with a Bachelor of Science (geology major). Mr Stern’s
career has been in corporate advisory, spending six years with Macquarie Bank and three years
with both UBS and Deutsche Bank. In 2000, Mr Stern established Metropolis Pty Ltd, a corporate
advisory firm specialising in mergers and acquisitions, capital raisings and proxy contests. Mr Stern
is a Fellow of the Australian Institute of Company Directors. Mr Stern is Non‐Executive Chairman
of Troy Resources Limited.
Interest in Shares and Options
Shares – 22,206,252
Current directorships
Troy Resources Limited ‐ Chairman (Non‐Executive) (appointed 16‐Jun‐17)
Former directorships held in past
three years
Altan Nevada Minerals Limited (TSXV:ANE) – Non‐executive director (resigned 18‐Oct‐19)
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
29
Directors’ Report
Information on directors (continued)
David Varcoe
Qualifications
Appointed
Experience
Non‐Executive Director, Independent
B.Eng (Mining)
28 November 2019
Mr Varcoe is a mining engineer with more than 31 years’ experience in the industry. Mr Varcoe
has extensive operational and managerial experience across a number of commodities including
gold, iron ore, copper, diamonds, coal, uranium and rare earths. Mr Varcoe is experienced in board
positions and operations management as well as project management and consulting. Mr Varcoe
is a principal consultant with leading Australian firm AMC Consultants.
Interest in Shares and Options
Shares – 300,000
Options ‐ $0.135 expiring 27‐Nov‐22 – 3,000,000
Current directorships
Former directorships held in past
three years
Nil.
Nil.
Directors’ meetings
The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company during the period are:
Number of meetings
director eligible to
attend
Number of meetings
director attended
7
7
4
7
7
3
7
7
4
7
7
3
Director
Mr Leigh Warnick
Mr Marc Ducler
Mr Justin Osborne
Mr Peter Stern
Mr David Varcoe
Mr John Jones
Company secretary
Brendon Morton was appointed as Company Secretary and Chief Financial Officer on 13 January 2020. Mr Morton holds a Bachelor
of Business Degree and is a member of both the Institute of Chartered Accountants Australia (ICAA) and the Governance Institute of
Australia (GIA). Mr Morton has previously held Company Secretarial and Chief Financial Officer roles with both ASX listed and unlisted
public and private companies. Mr Morton is currently Company Secretary of Fitzroy River Corporation Limited (ASX:FZR).
30
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Financial position
The net assets of the consolidated Group have decreased to $20,818,809 (2021: $22,557,647). The Group’s working capital, being
current assets less current liabilities was $1,453,754 at 30 June 2022 (2021: $9,307,102).
Unissued shares under option
Unissued ordinary shares of Astral Resources NL under option at the date of this report are as follows:
Tranche
Grant date
Expiry date
E
F
G
I
J
K
L
2‐Dec‐19
2‐Dec‐19
2‐Dec‐19
18‐Mar‐20
9‐Oct‐20
25‐Sep‐20
19‐Nov‐21
27‐Nov‐22
27‐Nov‐22
27‐Nov‐22
31‐Dec‐22
9‐Oct‐22
31‐Dec‐22
19‐Nov‐23
Total unlisted options on issue at the date of this report
Securities granted during the year
Exercise
price
$0.135
$0.135
$0.135
$0.15
$0.213
$0.34
$0.119
Number
1,000,000
1,000,000
1,000,000
1,250,000
2,000,000
6,000,000
3,000,000
15,250,000
Options over ordinary shares granted during the year as share based payments are as follows:
Tranche
Class of securities
Grant date
Number of
securities
Exercise price
Expiry
date
Vesting date
L
Director Options
19‐Nov‐21
3,000,000
$0.119
19‐Nov‐23
Immediate
No performance rights were granted during the year as share based payments.
Refer to Note 23 for details of share based payment expenditure.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
31
Directors’ Report
Insurance of Officers
During the year, the Company paid a premium to insure the directors and officers of the Group. The contract of insurance prohibits
disclosure of the nature of the liability insured and the amount of the premium.
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 any
company in the Group, or to intervene in any proceedings to which any company in the Group is a party.
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.
Non‐audit services
The Group may decide to employ its auditor on assignments additional to their statutory audit duties where the auditor’s expertise
and experience with the Group is important.
During the year there were no fees paid or payable for non‐audit services provided by an auditor of the Group (2021: nil).
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the page
following this Directors’ Report.
32
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Remuneration Report ‐ Audited
The remuneration report outlines the remuneration arrangements which were in place during the year and remain in place as at
the date of this report, for the Directors and key management personnel of Astral Resources NL (formerly Anglo Australian
Resources NL).
The information provided in this remuneration has been audited as required by section 308(3C) of the Corporations Act 2001.
The remuneration report is set out under the following main headings:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Key management personnel (KMP) covered in this report
Remuneration policy and link to performance
Elements of remuneration
Link between remuneration and performance
Contractual arrangements for executive KMP
Non‐executive director arrangements
KMP remuneration
Other statutory information
(a) Key management personnel (KMP) covered in this report
Figure 13: Directors (executive and non‐executive)
Name
Mr Leigh Warnick
Mr Marc Ducler
Mr Justin Osborne
Mr David Varcoe
Mr Peter Stern
Mr John Jones
Position
Chairman
Managing Director
Non‐Executive Director (from 18 November 2021)
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director (until 16 November 2021)
Figure 14: Other key management personnel
Name
Jed Whitford
Brendon Morton
Julie Reid
Position
General Manager Projects & Business Development
Chief Financial Officer & Company Secretary
Geology Manager
(b) Remuneration policy and link to performance
The objective of the Company’s remuneration structure is to reward and incentivise key management personnel and employees to
ensure alignment with the interests of shareholders. The remuneration structure also seeks to reward key management personnel
and employees for their contribution to the Company in a manner that is appropriate for a company at this stage of its development.
A Remuneration Committee was established during the year, comprising independent non‐executive directors Justin Osborne and
Peter Stern and the Company’s independent human resources consultant. The Remuneration Committee reviews and determines
remuneration policy and structure annually to ensure it remains aligned to the Company’s needs and meets the Company’s
remuneration principles. The Board and the Remuneration Committee, from time to time, may engage external remuneration
consultants to assist with his review.
(c) Elements of remuneration
Fixed annual remuneration
Key management personnel receive their base pay and statutory benefits structured as a total fixed remuneration (TFR) package.
Base pay for key management is reviewed annually to ensure the remuneration is competitive with the market and remains
appropriate for the Company and its operations.
There are no guaranteed base pay increases included in any employment contracts.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
33
Directors’ Report
Remuneration Report ‐ Audited
Short term incentives
Any payment of short‐term incentives is at the Board’s absolute discretion. Due to the nature of the Company’s operations and the
stage of development, the Company has not paid any short‐term incentives, nor has any formal short‐term incentive scheme been
adopted.
Long term incentives
Options
On 19 November 2021, 3,000,000 unquoted options were issued to a nominee of Mr Osborne, in connection with his appointment
as a non‐executive director. The options are exercisable at $0.119 and expire on 19 November 2023. The options were issued under
the Company’s Employee Incentive Plan.
Options are issued at the Board’s discretion. Other than the options disclosed in section (g) of this Remuneration Report, there were
no other options issued to employees during the year. The options issued are recognised as an expense over the vesting period.
Performance Rights
No performance rights were issued during the year.
During the previous financial year, the Board determined that the performance conditions attaching to 1,830,780 2020A Performance
Rights and 5,340,075 2020B Performance Rights (together, the Performance Rights) had been met. The Performance Rights were
converted to 7,170,855 fully paid ordinary shares on 7 July 2021.
(d) Link between remuneration and performance
Remuneration of executives consists of an un‐risked element (base pay) and long‐term incentives (performance rights) which vest
upon the satisfaction of performance criteria, based on key strategic, non‐financial measures linked to drivers of performance in
future reporting periods. The Company did not pay any short‐term incentives (e.g. cash bonuses) during the year (2021: nil).
The Group’s summary key performance information, including earnings and movement in shareholder wealth for the five (5) years
to 30 June 2022 is included at Figure 15 below:
Figure 15: Key performance indicators
Revenue
Net profit/(loss) before tax
Net profit/(loss) after tax
Share price at start of year
Share price at end of year
Basic earnings/(loss) per share ($)
Diluted earnings/(loss) per share ($)
30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
173,712
82,159
66,178
(2,353,412)
(3,437,159)
(2,710,042)
(2,353,412)
(3,437,159)
(2,710,042)
0.085
0.070
(0.39)
(0.39)
0.140
0.085
(0.66)
(0.66)
0.064
0.140
(0.67)
(0.67)
6,309
(656,006)
(656,006)
0.092
0.064
(0.20)
(0.20)
5,491
(920,462)
(920,462)
0.040
0.092
(0.32)
(0.32)
(e) Contractual arrangements for executive KMP
The executive remuneration framework is summarised in the table below:
Component
Managing Director
Other Key Management Personnel
Fixed remuneration
Short term incentive (STI)
Long term incentive (LTI)
Contract duration
$273,568
Range between $239,250 and $287,304
Company may invite the employee to participate at its sole discretion
Company may invite the employee to participate at its sole discretion
Ongoing contract
Ongoing contract
Notice by the individual/company
6 months
3 months
34
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Remuneration Report ‐ Audited
(f) Non‐executive director arrangements
Fees and payments to non‐executive directors reflect the demands which are made on, and the responsibilities of, the directors.
Non‐executive directors’ fees and payments are reviewed annually by the board taking into account comparable roles and market
data. The Chair’s fees are determined independently to the fees of non‐executive directors based on comparative roles in the external
market.
Non‐executive directors do not receive performance‐based pay.
Non‐executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically recommended for
approval by shareholders. The maximum currently stands at $300,000 per annum and was approved by shareholders at the Annual
General Meeting held 27 November 2017.
Additional fees
A director may also be paid fees or other amounts as the directors determine if a director performs special duties or otherwise
performs services outside the scope of the ordinary duties of a director.
A director may also be reimbursed for out‐of‐pocket expenses incurred as a result of their directorship or any special duties.
Post‐employment benefits
Superannuation contributions required under the Australian Superannuation Guarantee Legislation continue to be made and are
deducted from the directors’ overall fee entitlements, where applicable.
Throughout the period the following fees applied: non‐executive chair $70,000 per annum; non‐executive directors $50,000 per
annum.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
35
Directors’ Report
Remuneration Report ‐ Audited
(g) KMP Remuneration
Details of the remuneration expense recognised for the Group’s key management personnel during the current and previous financial year in accordance with the requirements of the accounting standards is
included below.
Fixed remuneration
Variable remuneration
Performance based percentage
Post‐
employment
benefits
$
Other
$
Total fixed
$
Performance
Rights
$
Options
$
Name
Executive Directors
M. Ducler
Other KMP
J. Whitford
B. Morton
J. Reid
Non‐Executive Directors
L. Warnick
P. Stern
D. Varcoe
J. Jones
(to 16‐Nov‐21)
J. Osborne
(from 18‐Nov‐21)
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
Salary1
$
254,577
248,979
263,736
239,079
230,069
208,662
217,500
212,625
70,000
70,000
50,000
50,000
50,000
50,000
19,026
45,662
28,182
‐
23,568
21,694
23,568
21,455
22,932
19,291
21,750
20,199
‐
‐
‐
‐
‐
‐
1,903
4,338
2,819
‐
Total
86,977
1 – Includes movement in KMP leave entitlement balances (where applicable).
1,125,007
2021
1,182,318
96,539
36
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
278,145
270,673
287,304
260,534
253,001
227,953
239,250
232,824
70,000
70,000
50,000
50,000
50,000
50,000
20,929
50,000
31,000
‐
127,568
350,082
104,871
297,787
96,423
273,799
75,507
214,406
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,278,857
1,211,984
404,369
1,136,074
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
7,624
33,056
‐
‐
75,164
‐
82,788
33,056
Total linked to
performance
Total
remuneration
Fixed
remuneration
Remuneration
linked to
performance
$
$
127,568
350,082
104,871
297,787
96,423
273,799
75,507
214,406
‐
‐
‐
‐
7,624
33,056
‐
‐
405,713
620,755
384,123
558,321
353,736
501,752
317,726
447,231
70,000
70,000
50,000
50,000
57,624
83,056
20,929
50,000
75,164
106,164
‐
487,157
1,169,130
‐
1,766,014
2,381,114
%
69%
44%
73%
47%
73%
45%
76%
52%
100%
100%
100%
100%
87%
60%
100%
100%
29%
‐
72%
51%
%
31%
56%
27%
53%
27%
55%
24%
48%
0%
0%
0%
0%
13%
40%
0%
0%
71%
‐
28%
49%
Directors’ Report
Remuneration Report ‐ Audited
(h) Other statutory information
(i) Terms and conditions of the share‐based payment arrangements
Performance Rights
The terms and conditions of each grant of performance rights to KMP affecting remuneration in the current or future reporting
period are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
2020A
Director performance
rights
16‐Jun‐20
1,830,780
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
23‐Jun‐24
Non‐
transferable
2020B
Employee / consultant
performance rights
23‐Jun‐20
3,904,986
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
23‐Jun‐24
Non‐
transferable
2020C
LTI
Director performance
rights (2020C LTI)1
15‐Jul‐20
2,382,216
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30‐Jun‐22
Non‐
transferable
2020D
LTI
Employee / consultant
performance rights
(2020D LTI)2
6‐Oct‐20
3,939,574
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30‐Jun‐22
Non‐
transferable
1 – 2,382,216 2020C LTI Performance Rights automatically lapsed on 30 June 2022 due to the performance conditions (as outlined below) not having
been met.
2 – 3,939,574 2020D LTI Performance Rights automatically lapsed on 30 June 2022 due to the performance conditions (as outlined below) not having
been met.
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
2020A/2020B Performance Rights
The 2020A and 2020B performance rights shall vest on the later date to occur of:
a) The date when the milestone shown in the table below is met; and
Performance / Vesting Condition and Performance Period
Extent to which
Performance Rights vest
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 1,000,000 ounces.1
100%
1 – No share based payment expense has been recognised for performance rights associated with this milestone.
b)
the date when the holder gives a notice to the Company confirming that the holder would like the Performance Rights to vest.
The performance rights issued are subject to non‐market vesting conditions. The performance rights were valued based upon the
share price at the deemed grant date.
Tranche
2020A
2020B
Grant
Date
16‐Jun‐20
23‐Jun‐20
2020C LTI Performance Rights
Number of Instruments
Valuation at grant date
1,830,780
3,904,986
$0.125
$0.15
The 2020C LTI Performance Rights which do not meet the performance/vesting conditions by the end of the performance period
will automatically lapse. The following performance and vesting conditions apply:
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
37
Directors’ Report
Remuneration Report ‐ Audited
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 1 January 2020.
The performance rights issued are subject to both market and non‐market vesting conditions. The performance rights were valued
using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for the performance
rights.
2020D LTI Performance Rights
The 2020D LTI Performance Rights which do not meet the performance/vesting conditions by the end of the performance period
will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 1 July 2020.
38
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Remuneration Report ‐ Audited
The performance rights issued are subject to both market and non‐market vesting conditions. The performance rights were valued
using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for the performance
rights.
Tranche
2020C LTI
2020D LTI
Grant
date
15‐Jul‐20
6‐Oct‐20
Options
Number of Instruments
Valuation at grant date
2,382,216
3,939,574
$0.1049
$0.1218
On 19 November 2021, 3,000,000 unquoted options were issued to a nominee of Mr Osborne, in connection with his appointment
as a non‐executive director. The options are exercisable at $0.119 and expire on 19 November 2023. The options were issued under
the Company’s Employee Incentive Plan.
Other than as specified above, the Company did not make any other grant of unquoted options to KMP during the year.
The terms and conditions of each previous grant of options affecting remuneration in the current or a future reporting period are
as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Vesting Date
G
L
Director Options
02‐Dec‐19
1,000,000
Director Options
17‐Nov‐21
3,000,000
$0.135
$0.119
27‐Nov‐22
27‐Nov‐21
19‐Nov‐23
Immediate
In order for the Director Options to vest, the Director must remain a director as at the Vesting Date.
The Options were valued using a Black Scholes Model with the following inputs:
Tranche
Valuation Date
Expected
Volatility
Risk‐Free
Interest Rate
Expiry
Underlying
Share Price
G
L
02‐Dec‐19
17‐Nov‐21
80%
67%
0.70%
0.16%
27‐Nov‐22
19‐Nov‐23
$0.088
$0.09
Value per
Options
($)
0.0359
0.025
Total
Value
($)
35,909
75,164
Subject to the Board’s discretion, options shall be cancelled for nil consideration where the recipient ceases to hold employment or
office with the Company.
(ii) Reconciliation of options, deferred shares and ordinary shares held by KMP
The numbers of options over ordinary shares in the Group held during the period by each Director of Astral Resources NL and other
key management personnel of the Group, including their personally related parties, are set out below.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
39
Directors’ Report
Remuneration Report ‐ Audited
Figure 16: Option holdings
Balance at beginning of
the year
Unvested
Vested
and
exercis‐
able
Granted
as
compens‐
ation
Vested
Exercised
Number
%
Number
2,000,000
1,000,000
‐
1,000,000
33%
‐
‐
3,000,000
‐
‐
Exercise
price1
‐
‐
‐
‐
Name
D. Varcoe
J. Osborne
Total
‐
1 – Weighted average exercise price of options, given multiple tranches of options were exercised.
2,000,000
1,000,000
1,000,000
3,000,000
33%
‐
Net
Change
Other
Balance at the end of
the year
Vested
and
exercis‐
able
‐
‐
‐
3,000,000
3,000,000
6,000,000
Unvested
‐
‐
‐
The numbers of shares in the Group held during the period by each Director of Astral Resources NL and other key management
personnel of the Group, including their personally related parties are set out below. There were no shares granted during the
reporting period as compensation.
Figure 17: Shareholdings
Name
Directors
Balance at the
start of the year
Capital Raising
shares
subscribed for
Performance
Rights Vested
Shares issued
upon exercise of
options
Other changes1
Balance at the
end of the year
Mr Leigh Warnick
‐
Mr Marc Ducler
3,062,900
Mr Justin Osborne2
Mr Peter Stern
Mr David Varcoe
Mr John Jones3
Other key
management
personnel
Mr Jed Whitford
Mr Brendon Morton
Ms Julie Reid
Total
‐
22,206,252
200,000
68,632,177
222,331
498,896
167,647
94,990,203
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,830,780
‐
‐
‐
‐
1,479,472
1,360,295
1,065,220
5,735,767
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
750,000
‐
4,893,680
750,000
‐
22,206,252
100,000
300,000
(68,632,177)
‐
(1,218,774)
‐
‐
483,029
1,859,191
1,232,867
(69,000,951)
31,725,019
1 – Includes on‐market acquisitions and disposals and final directors interest3.
2 – Appointed 18 November 2021.
3 – Retired 16 November 2021.
There were no shares subject to escrow as at 30 June 2022.
The number of performance rights over ordinary shares in the Group held during the period by each Director of Astral Resources NL
and other key management personnel of the Group, including their personally related parties, are set out below.
40
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Directors’ Report
Remuneration Report ‐ Audited
Figure 18: Performance Rights
Name
Directors
Balance at the start of the year
Vested and
exercisable
Un‐vested
Granted as
compensation
Exercised
Expired
Balance at the end of the year
Vested and
exercisable
Un‐vested
Mr Marc Ducler
1,830,780
4,212,996
‐
(1,830,780)
(2,382,216)
Other key
management
personnel
Mr Jed Whitford
1,479,494
2,972,070
Mr Brendon Morton
1,360,295
2,732,637
Ms Julie Reid
1,065,220
2,139,875
Total
5,735,789
12,057,578
(iii) Key Management Personnel Loans
‐
‐
‐
‐
(1,479,472)
(1,492,576)
(1,360,295)
(1,372,343)
(1,065,220)
(1,074,655)
(5,735,767)
(6,321,790)
‐
‐
‐
‐
‐
1,830,780
1,479,472
1,360,294
1,065,220
5,735,766
There were no loans to or from key management personnel outstanding at 30 June 2022 (2021: nil).
(iv) Other transactions and balances with key management personnel
Metropolis Pty Ltd, a company of which Peter Stern is a director, received $50,000 excluding GST (2021: $50,000) during the year for
non‐executive directors fees, of which $12,500 related to fees owing at 30 June 2021. An amount of $12,500 was invoiced but unpaid
at 30 June 2022 (2021: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June 2022 that
are not already included in the Remuneration Report contained in the Directors’ Report.
(v) Remuneration consultants
The Board may, from time to time, engage independent remuneration consultants to assist with the review of the Company’s
remuneration policy and structure to ensure it remains aligned to the Company’s needs and meets the Company’s remuneration
principles. The Company did engage an independent human resources consultant during the year to assist with remuneration
matters.
(vi) Voting of shareholders at the Company’s 2021 Annual General Meeting
The Company received more than 98% of “yes” votes on its remuneration report for the 2021 financial year. The Company did not
receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
This report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of Directors.
This is the end of the Remuneration Report.
Marc Ducler
Managing Director
Perth, Western Australia
30 September 2022
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
41
Auditor’s Independence Declaration
Auditor’s Independence Declaration
42
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Independent Auditor’s Report
Independent Auditor’s Report
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
43
Independent Auditor’s Report
44
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Independent Auditor’s Report
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
45
Independent Auditor’s Report
46
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2022
Revenue from continuing operations
Other income
Consultants and advisors
Corporate costs
Depreciation and amortisation expense
Employee benefit expense
General and administrative expenses
Impairment expense
Interest expense
Investor relations
Loss on financial liabilities settled via equity
Share based payment expense
Loss before income tax
Income tax expense
Net loss for the year
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Gain/(loss) on revaluation of equity instruments at fair value through
other comprehensive income, net of tax
Other comprehensive loss for the year, net of tax
Note
2022
$
2021
$
4
5
5
5
12
23
6
173,712
82,159
(41,928)
(323,450)
(90,409)
(900,065)
(198,549)
(168,271)
(6,501)
(148,377)
‐
(649,574)
(2,353,412)
‐
(2,353,412)
(35,000)
(35,000)
(108,966)
(451,444)
(77,580)
(753,162)
(149,589)
(464,190)
(3,290)
(117,721)
(28,571)
(1,597,213)
(3,669,567)
‐
(3,669,567)
‐
‐
Total comprehensive loss for the year
(2,388,412)
(3,669,567)
Total comprehensive loss attributable to equity holders of the
Company
(2,388,412)
(3,669,567)
Loss per share attributable to ordinary equity holders
Basic loss per share (dollars per share)
Diluted loss per share (dollars per share)
0
0
(0.39)
(0.39)
(0.66)
(0.66)
The above consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
47
Consolidated Balance Sheet
Consolidated Balance Sheet
As at 30 June 2022
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non‐current assets
Property, plant and equipment
Exploration and evaluation expenditure
Right of use assets
Investments at fair value through Other Comprehensive Income
Total non‐current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Employee benefits
Lease liabilities
Total current liabilities
Non‐current liabilities
Lease liabilities
Provisions
Total non‐current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2022
$
2021
$
9
10
11
12
13
14
15
16
17
17
18
19
20
3,177,142
149,306
3,326,448
75,994
19,212,143
113,781
90,000
19,491,917
22,818,366
1,623,794
171,788
77,111
1,872,694
39,956
86,907
126,863
1,999,557
20,818,809
9,807,468
75,683
9,883,151
83,015
13,227,016
58,321
‐
13,368,353
23,251,503
369,532
161,343
45,173
576,048
18,788
99,020
117,808
693,856
22,557,647
57,438,927
2,579,090
(39,199,208)
20,818,809
56,409,068
2,994,375
(36,845,796)
22,557,647
The above consolidated statement of financial position is to be read in conjunction with the accompanying notes.
48
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Note
21
Cash flows from operating activities
Other income
Payments to suppliers and employees
Net cash flows used in operating activities
Cash flows from investing activities
Exploration and evaluation expenditure
Proceeds from disposal of Leonora Project
Proceeds from joint venture partner
Settlement of third‐party royalty
Payments for property, plant and equipment
Interest received
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Repayment of principal portion of lease liabilities
Capital raising costs
Net cash flows from financing activities
Cash and cash equivalents at beginning of the year
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at end of the year
9
2022
$
2021
$
‐
(938,036)
(938,036)
(5,620,691)
30,000
‐
‐
(34,697)
18,712
129,552
(1,399,743)
(1,270,191)
(5,538,539)
‐
900,000
(541,360)
(31,871)
44,659
(5,606,676)
(5,167,111)
‐
(85,613)
‐
(85,613)
9,807,468
(6,630,325)
3,177,142
13,518,492
(68,948)
(606,677)
12,842,867
6,405,565
3,401,903
9,807,468
The above consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
49
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
Issued capital
$
Reserves
$
Accumulated losses
$
Total
$
Balance at 1 July 2020
Loss for the year
Total comprehensive loss for the
year
Transactions with owners, directly
recorded in equity:
Issue of ordinary shares (net of
costs)
Issue/vesting of performance rights
Issue/vesting of options
Balance at 30 June 2021
43,575,908
1,089,936
‐
‐
12,833,160
‐
‐
56,409,068
‐
‐
‐
1,446,999
457,440
2,994,375
(33,176,230)
(3,669,567)
11,489,614
(3,669,567)
(3,669,567)
(3,669,567)
‐
‐
‐
(36,845,796)
12,833,160
1,446,999
457,440
22,557,647
Issued capital
$
Reserves
$
Accumulated losses
$
Total
$
Balance at 1 July 2021
Loss for the year
Other comprehensive loss for the
year, net of tax
Total comprehensive loss for the
year
Transactions with owners, directly
recorded in equity:
Issue of ordinary shares (net of
costs)
Issue of shares upon conversion of
performance rights
Issue/vesting of performance rights
Issue/vesting of options
Balance at 30 June 2022
‐
‐
‐
‐
56,409,068
2,994,375
‐
(35,000)
(36,845,796)
(2,353,412)
22,557,647
(2,353,412)
‐
(35,000)
(35,000)
(2,353,412)
(2,388,412)
‐
1,029,859
(1,029,859)
‐
‐
566,786
82,788
‐
‐
‐
‐
‐
‐
566,786
82,788
57,438,927
2,579,090
(39,199,208)
20,818,809
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
50
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
1. Summary of significant accounting policies
The principal accounting policies adopted
financial statements are set out below.
the preparation of
These policies have been consistently applied to the period presented, unless otherwise stated. These financial statements are for
the consolidated Group consisting of Astral Resources NL and its subsidiaries, together referred to as Astral or the Group.
the
in
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
(a) Conceptual Framework for Financial Reporting (Conceptual Framework)
The Group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains new
definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but it
has not had a material impact on the consolidated entity's financial statements.
(b) New or amended Accounting Standards and Interpretations adopted
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.
(c) Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting
Standards, Interpretations and other authoritative pronouncements issued by the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001 (Cth).
Astral Resources NL is a listed public company, incorporated and domiciled in Australia. Astral Resources NL is a for‐profit entity
for the purpose of preparing the financial statements.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards as
issued by the IASB. Material accounting policies adopted in the preparation of this financial report are presented below and
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 selected non‐current assets, financial assets and financial liabilities.
An individual entity is no longer presented as the consequence of a change to the Corporations Act 2001. Financial information
for Astral Resources NL as an individual entity is included in Note 30.
(d) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Astral Resources NL (‘’the
Company’’ or ‘’the Parent Entity’’) as at 30 June 2022 and the results of all subsidiaries for the period then ended. Astral
Resources NL and its subsidiaries together are referred to in this financial report as “the Group” or “the Consolidated Entity”.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.
Intercompany transactions, intercompany balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction proves evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Non‐controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit
or Loss and Other Comprehensive Income, Consolidated Statement of Changes in Equity, and Consolidated Balance Sheet
respectively.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
51
Notes to the Consolidated Financial Statements
(e) Going concern
As at 30 June 2022, the Group had cash and cash equivalents of $3,177,142 and had net working capital of $1,453,755. The
Group incurred a loss for the year ended 30 June 2022 of $2,353,412 (30 June 2021: loss of $3,669,567) and net cash outflows
used in operating activities and investing activities totalling $6,544,712 (30 June 2021: cash outflows of $6,437,302).
The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds
by raising capital from equity markets and managing cash flows in line with available funds.
These factors indicate a material uncertainty which may cast significant doubt as to whether the Group will continue as a going
concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at
amounts stated in the financial report.
The financial statements have been prepared on the basis that the Group is a going concern, which contemplates the continuity
of normal business activity, realisation of assets and settlement of liabilities in the normal course of business for the following
reasons:
As disclosed in Note 29 the Group announced on 26 September 2022 that it was undertaking a renounceable
entitlement offer to raise up to $3.9million (before costs);
The Group has the ability to issue additional equity securities under the Corporations Act 2001 to raise further working
capital; and
The Group has the ability to curtail administrative, discretionary exploration and overhead cash outflows as and when
required.
The ability of the Group to continue as a going concern and to fund its operational activities is dependent on the above.
Should the Group not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or liabilities that might be necessary should the Group not continue as a going concern.
(f) Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM are responsible for the allocation
of resources to operating segments and assessing their performance.
(g) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts
and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of
interest that is generally accepted in the market for similar arrangements. The difference between the amount initially
recognised and the amount ultimately received is interest revenue.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate
inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.
All revenue is stated net of the amount of goods and services tax (GST).
(h) Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with
the costs that they are intended to compensate.
(i)
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in
a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
52
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
The carrying amounts of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Astral Resources NL (the 'head entity') and its wholly‐owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to
account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate taxpayer within
group' approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
(j)
Current and non‐current classification
Assets and liabilities are presented in the statement of financial position based on current and non‐current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting period. All other assets are classified as non‐current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non‐current.
Deferred tax assets and liabilities are always classified as non‐current.
(k) Cash and cash equivalents
For cashflow statement presentation, cash and cash equivalents include cash on hand, deposits held at call with financial
institutions, other short‐term highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of change in rate and bank overdrafts.
(l)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(m) Property, plant and equipment
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on
qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation on assets is calculated using the straight‐line method to allocate their cost or re‐valued amounts, net of their
residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and
equipment, the shorter lease term as follows:
Vehicles: 5 ‐ 8 years
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
53
Notes to the Consolidated Financial Statements
Furniture, fittings and equipment: 3 ‐ 8 years
Field equipment: 3 ‐ 8 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in profit or loss.
(n) Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written
off in the year in which the decision is made.
(o)
Farm‐out arrangements
The Group does not record any expenditure made by the farmee on its account. It also does not recognise any gain or loss on
its exploration and evaluation farm‐out arrangements but redesignates any costs previously capitalised in relation to the whole
interest as relating to the partial interest retained. Any cash consideration received directly from the farmee is credited against
costs previously capitalised in relation to the whole interest with any excess accounted for by the farmor as a gain on disposal.
(p) Right‐of‐use assets
A right‐of‐use asset is recognised at the commencement date of a lease. The right‐of‐use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right‐of‐use assets are depreciated on a straight‐line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease
term, the depreciation is over its estimated useful life. Right‐of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
The Group has elected not to recognise a right‐of‐use asset and corresponding lease liability for short‐term leases with terms
of 12 months or less and leases of low‐value assets. Lease payments on these assets are expensed to profit or loss as incurred.
(q)
Impairment of assets
Non‐financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds
its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value‐in‐use. The value‐in‐use is the present
value of the estimated future cash flows relating to the asset using a pre‐tax discount rate specific to the asset or cash‐
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
cash‐generating unit.
(r)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and
which are unpaid. Due to their short‐term nature they are measured at amortised cost and are not discounted. The amounts
are unsecured and are usually paid within 30 days of recognition.
(s)
Contributed equity
Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities. Incremental
costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy‐
back or a share‐based payment plan, the consideration paid, including any directly attributable incremental costs (net of income
taxes) is deducted from equity attributable to the owners of Astral Resources NL as treasury shares until the shares are
cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners
of Astral Resources NL.
(t)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less
any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under
residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur,
54
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed
in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right‐of use asset, or to profit or loss if the carrying amount of the right‐of‐use asset is fully written
down.
(u)
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.
(v) Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is
probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of
money is material, provisions are discounted using a current pre‐tax rate specific to the liability. The increase in the provision
resulting from the passage of time is recognised as a finance cost.
(w) Employee benefits
Short‐term employee benefits
Liabilities for wages and salaries, including non‐monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long‐term employee benefits
The liabilities for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to the
reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Share‐based payments
Equity‐settled share‐based compensation benefits are provided to eligible employees. Equity‐settled transactions are awards
of performance rights or options over shares that are provided to employees in exchange for the rendering of services. The
cost of equity‐settled transactions are measured at fair value on grant date.
(i) Options
The fair values of options are independently determined using either the Binomial or Black‐Scholes option pricing models. The
calculation of fair value for options takes into account the exercise price, the term of the option, the impact of dilution, the
share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with non‐vesting conditions that do not determine whether the Group receives
the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
(ii) Performance rights
The fair value of performance rights with market‐based performance and vesting criteria are independently determined using
the Hoadleys Hybrid ESO Model (a Monte Carlo simulation model). The calculation of fair value for rights takes into account
the term of the right, the share price at grant date, the expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the right, together with non‐vesting conditions that do not determine
whether the Group receives the services that entitle the employees to receive payment. An exercise multiple is applied based
on a Hull‐White Model which is considered the de facto standard for IFRS 2 and FASB 123R compliant employee share option
valuations. No account is taken of any other vesting conditions.
The fair value of performance rights granted to employees for nil consideration under the Employee Incentive Plan is recognised
as an expense over the relevant service period, being the vesting period of the performance rights. The fair value is measured
at the grant date of the performance rights and is recognised in equity in the share‐based payment reserve.
The cost of equity‐settled transactions is recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
55
Notes to the Consolidated Financial Statements
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity‐settled awards are modified, as a minimum an expense is recognised as if the modification had not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share‐based compensation benefit as at the date of modification.
If the non‐vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period,
any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If an equity‐settled award is cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the new award is treated as a
modification of the cancelled award.
(x)
Fair value measurement
When an asset or liability, financial or non‐financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date; and assumes that the transaction will take place either in the principal market,
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non‐financial assets, the fair value measurement is based on its highest and best
use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
For recurring and non‐recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable,
with external sources of data.
(y)
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
(z)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Astral Resources NL, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
(aa) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of
the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown
inclusive of GST.
56
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
Cash flows are presented in the Consolidated Statement of Cash Flows on a gross basis, except for the GST components of
investing and financing activities, which are disclosed as operating cash flows.
(bb) Parent entity information
The financial information for the parent entity, Astral Resources NL, disclosed in Note 30 has been prepared on the same basis
as the consolidated financial statements.
(cc) Standards and Interpretations in use not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the Group for the annual reporting period ended 30 June 2022. The Group has not yet assessed
the impact of these new or amended Accounting Standards and Interpretations.
2. Critical accounting estimates and judgments
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions
on historical experience and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.
Coronavirus (COVID‐19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID‐19) pandemic has had, or may have, on
the Company based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain, staffing and geographic regions in which the company operates. Other than as addressed in specific
notes, there does not currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the Company unfavourably as at the reporting date or
subsequently as a result of the Coronavirus (COVID‐19) pandemic.
Share‐based payment transactions
The Group measures the cost of equity‐settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Hoadleys Hybrid ESO Model
(a Monte‐Carlo simulation model) or Black‐Scholes model (as the case may be), taking into account the terms and conditions
upon which the instruments were granted. The accounting estimates and assumptions relating to equity‐settled share‐based
payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but
may impact profit or loss and equity. Where performance rights are subject to vesting conditions, Management has formed
judgments around the likelihood of vesting conditions being met. Expenses recognised during the year have been calculated
accordingly. Refer to Note 23 for further information.
Exploration and evaluation costs
Exploration and evaluation expenditures are those expenditures incurred in connection with the exploration for and evaluation
of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.
Expenditure incurred on activities that precede exploration and evaluation of mineral resources, including all expenditure
incurred prior to securing legal rights to explore an area, is expensed as incurred.
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. An ‘area of
interest’ is an individual geological area which is considered to constitute a favourable environment for the presence of a mineral
deposit or has been proved to contain such a deposit. These costs are carried forward only if they relate to an area of interest
for which rights of tenure are current and in respect of which:
Such costs are expected to be recouped through successful development and exploitation or from sale of the area; and
Exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable resources, and active and significant operations
in, or relating to, this area are continuing.
A regular review is undertaken in each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to each area of interest. If costs do not meet the criteria noted above, they are written off in full against the profit or
loss statement.
Impairment of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exists:
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
57
Notes to the Consolidated Financial Statements
The term of the exploration licence in the specific area of interest has expired during the reporting period or will expire
in the near future, and is not expected to be renewed;
Substantive expenditure on further exploration and evaluation of mineral resources in the specific area of interest is not
budgeted or planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resource and the decision has been made to discontinue such activities in the specific area;
or
Sufficient data exists to indicate that, although development in the specific area of interest is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development
or by sale.
When a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger than the
area of interest.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Employee benefits provision
As discussed in Note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting date
is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at
the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through
promotion and inflation have been taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined. The
Group's mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The Group recognises management's best estimate for assets retirement obligations and site rehabilitations in
the period in which they are incurred. Actual costs incurred in the future periods could differ materially from the estimates.
Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the
carrying amount of this provision.
3. Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Board of Directors. The Group has determined that it has one operating segment, being mineral exploration
and development.
4. Other income
Bank interest
Proceeds from disposal of exploration and evaluation asset
Government grant income1
2022
$
18,712
155,000
‐
173,712
2021
$
44,659
‐
37,500
82,159
1 ‐ Government grant income relates to the ATO cash boost stimulus measure introduced during the COVID‐19 pandemic.
5. Expenses
Profit/(Loss) before income tax for the year includes the following specific items:
Employee benefit expense
Employee expenses (including employment related expenses)
Superannuation
Capitalised as exploration and evaluation expenditure
Total employee benefits expense
58
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
2022
$
1,428,371
133,789
1,562,160
(662,096)
900,065
2021
$
1,249,294
114,263
1,363,557
(610,395)
753,162
Notes to the Consolidated Financial Statements
Consultants and advisors
Accounting and secretarial
Legal
Total consultant and advisor costs
Corporate costs
Compliance costs
Directors’ fees (inclusive of superannuation)
Due diligence costs
Share registry costs
Total corporate costs
6.
Income tax
a) Components of income tax expense
Current tax expense
Deferred tax expense
b) Prima facie tax payable
Loss before income tax
Prima facie income tax at 25% (2021: 26%)
Tax effect of amounts not deductible in calculating taxable income
- Entertainment
- Other non‐deductible expenses
- Share‐based payments
- Tax losses not recognised
Income tax expense/(benefit) attributable to loss
c) Current tax liability
Current tax relates to the following:
Current tax liabilities / (assets)
Opening balance
Income tax
Instalments paid
d) Deferred Tax
Deferred tax relates to the following:
Deferred Tax Assets (DTA) balance comprises:
Investments
Plant and equipment under lease
Accruals
Provisions – annual and long service leave
Provisions ‐ other
Capital raising costs
Business related costs
Tax losses
Offset against Deferred Tax Liabilities / Non‐recognition
Deferred Tax Liabilities balance comprises:
Prepayments
Exploration assets
Offset against Deferred Tax Assets
Net Deferred Tax
24,557
17,371
41,928
54,119
221,929
13,606
33,796
323,450
2022
$
‐
‐
‐
20,398
88,568
108,966
75,637
265,662
77,358
32,787
451,444
2021
$
‐
‐
‐
(2,353,412)
(588,353)
(3,669,567)
(893,661)
602
4,343
162,394
421,014
‐
‐
‐
‐
‐
8,750
29,267
120,446
3,482
29,832
116,723
81,690
11,902,208
(12,292,398)
‐
(2,318)
(4,109,092)
4,111,410
‐
380
422,704
(9,750)
480,327
‐
‐
‐
‐
‐
‐
16,630
24,919
18,844
27,404
179,688
135,695
9,376,155
(9,779,335)
‐
(3,317)
(2,645,557)
2,648,873
‐
‐
e) Deferred income tax (revenue)/expense included in income tax expenses comprises:
Decrease / (increase) in deferred tax assets
(Decrease) / increase in deferred tax liabilities
(1,998,853)
1,578,281
(1,972,540)
1,334,477
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
59
Notes to the Consolidated Financial Statements
Under/(over) provision in prior periods/revaluation of DTA due to change in tax
rate
Non‐recognition of deferred tax assets
f) Deferred income tax related to items charged or credited directly to equity
Decrease / (increase) in deferred tax assets
Non‐recognition of deferred tax assets
g) Deferred tax assets not brought to account
Temporary differences
Operating tax losses
7. Earnings per share
(625,421)
875,377
1,045,992
‐
8,750
(8,750)
‐
(237,314)
‐
157,736
(157,736)
‐
(3,749,667)
11,902,208
8,152,541
(2,260,856)
9,376,155
7,115,298
Basic earnings per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares outstanding during the year.
The following reflects the income and share data used in the total operations basic and diluted earnings per share computations:
Basic and diluted profit/(loss) per share
Basic profit/(loss) per share (cents per share)
Diluted profit/(loss) per share (cents per share)
Profit/(Loss)
Profit/(loss) used in the calculation of basic and diluted earnings per share is as follows:
Profit/(loss)
Loss from continuing operations
Weighted average number of ordinary shares
Weighted average number of ordinary shares outstanding during the period
used in calculating basic EPS
Weighted average number of ordinary shares outstanding during the period used in
calculating diluted EPS
8. Dividends paid or proposed
2022
Cents
(39)
(39)
2022
$
2021
Cents
(66)
(66)
2021
$
(2,353,412)
(2,353,412)
(3,669,567)
(3,669,567)
2022
No.
2021
No.
595,943,485
555,744,472
595,943,485
555,744,472
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the
date of this report.
9. Cash and cash equivalents
Current
Cash at bank and in hand
2022
$
2021
$
3,177,142
9,807,468
Cash at bank and in hand earns interest at both floating rates based on daily bank rates and fixed rate term deposits. The Company
notes that $21,414 (included in the Cash at bank and in hand amount) is held as a guarantee with National Australia Bank subject to
the following lease agreement:
$21,414 held as a bank guarantee for the Company’s sub‐lease agreement at its premises at Suite 2, 6 Lyall Street, South
Perth.
Refer to Note 22 on financial instruments for details on the Company’s exposure to risk in respect of its cash balance.
60
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
10. Trade and other receivables
Current
Sundry debtors
Rental deposits
GST receivable
Prepayments
2022
$
560
11,544
127,929
9,273
149,306
2021
$
‐
11,224
51,702
12,757
75,683
The Group did not have any receivables that were past due as at 30 June 2022 (30 June 2021: Nil). The Group therefore did not
consider a credit risk on the aggregate balances as at 30 June 2022. For more information, please refer to Note 22.
11. Property, plant and equipment
Motor vehicles – at cost
Less: Accumulated depreciation
Plant and equipment – at cost
Less: Accumulated depreciation
2022
$
52,596
(13,916)
38,680
48,159
(10,845)
37,314
2021
$
52,596
(8,390)
44,206
41,534
(2,725)
38,809
Total
75,994
83,015
As at 1 July 2020
Additions
Depreciation
As at 30 June 2021
As at 1 July 2021
Additions
Depreciation
As at 30 June 2022
Motor
Vehicles
$
50,522
‐
(6,316)
44,206
44,206
‐
(5,526)
38,680
Plant and
equipment
$
9,480
31,871
(2,543)
38,809
38,809
6,625
(8,120)
37,314
Total
$
60,002
31,871
(8,859)
83,015
83,015
6,625
(13,646)
75,994
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
61
Notes to the Consolidated Financial Statements
12. Exploration and evaluation expenditure
Non‐Current
Exploration and evaluation ‐ at cost
Reconciliations
2022
$
2021
$
19,212,143
13,227,016
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
2022
$
2021
$
Movement
Opening balance
Exploration expenditure capitalised during the year
Koongie Park J/V Contribution2
Consideration to extinguish third‐party royalties
Impairment expense
Revaluation of rehabilitation provision
Proceeds from Koongie Park Project Joint Venture partner
Closing balance
Comprised of:
Carnilya Hill Project
Feysville Project
Koongie Park Project
Leonora Project1
Mandilla Project
Impairment
Mandilla Project
Feysville Project
Koongie Park Project
Leonora Project
Carnilya Hill Project
13,227,016
5,723,680
441,831
‐
(168,271)
(12,113)
‐
19,212,143
‐
3,465,083
1,085,883
‐
14,661,177
19,212,143
(4,578)
(129,944)
(10,456)
(9,766)
(13,527)
(168,271)
8,281,952
5,558,713
‐
741,360
(464,190)
9,180
(900,000)
13,227,016
‐
3,460,145
675,917
‐
9,090,954
13,227,016
‐
(192,691)
(252,110)
(13,753)
(5,636)
(464,190)
1 ‐ On 10 January 2022, Astral executed an agreement with Ozz Resources Limited (ASX:OZZ) to dispose of its Leonora Base Metals
Project, comprising two exploration licences (E37/1287 and E37/1355). Astral received upfront consideration of $30,000 in cash and
500,000 OZZ shares. A further 1 million OZZ shares will be issued to Astral in the event that OZZ announces a JORC compliant gold
resource of greater than 50,000 ounces or when commercial mining commences.
2 ‐ AKN incurred expenditure of $1,767,324 at Koongie Park during the period 17 January 2022 to 30 June 2022. Based on Astral’s
participating interest of 25%, Astral has recognised a J/V contribution liability of $441,831 at 30 June 2022. On 2 September 2022,
subsequent to the end of the reporting period, Astral confirmed (by way of a board resolution) that, in lieu of settling the J/V
contribution liability in cash, Astral would elect to dilute its participating interest down to 20%, effective from 1 July 2022.
During the year, the Company assessed the carrying amount versus the recoverable amount of the areas of interest above. On the
basis that a number of tenements had been relinquished and/or there is no substantive expenditure budgeted or planned, the
Company recorded an impairment charge of $168,271 (2021: $464,190).
The Group’s exploration properties may be subject to claim(s) under native title, or contain sacred sites, or sites of significance to
Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to exploration restrictions,
mining restrictions and/or claims for compensation. At this time, it is not possible to quantify whether such claims exist, or the
quantum of such claims.
62
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
13. Non‐current assets – right‐of‐use assets
The Group leases land and buildings for its offices and regional operating bases, with lease agreements between one to five years
with, in some cases, options to extend.
Land and buildings
Opening balance
Additions to right‐of‐use assets
Depreciation charge for the year
Closing balance
14. Investments at fair value through Other Comprehensive Income
Non‐current
Listed investments1
2022
$
2021
$
58,321
132,222
(76,762)
113,781
2022
$
90,000
90,000
101,494
25,549
(68,722)
58,321
2021
$
‐
‐
1 ‐ On 10 January 2022, Astral executed an agreement with Ozz Resources Limited (ASX:OZZ) to dispose of its Leonora Base Metals
Project, comprising two exploration licences (E37/1287 and E37/1355). Astral received upfront consideration of $30,000 in cash and
500,000 OZZ shares. A further 1 million OZZ shares will be issued to Astral in the event that OZZ announces a JORC compliant gold
resource of greater than 50,000 ounces or when commercial mining commences.
15. Trade and other payables
Current
Trade payables
Accrued directors’ fees
Other payables and accruals
J/V Contribution Liability – Koongie Park1
2022
$
2021
$
716,390
26,000
435,033
441,831
1,623,794
288,874
12,500
68,158
‐
369,532
1 ‐ AKN incurred expenditure of $1,767,324 at Koongie Park during the period 17 January 2022 to 30 June 2022. Based on Astral’s
participating interest of 25%, Astral has recognised a J/V contribution liability of $441,831 at 30 June 2022. On 2 September 2022,
subsequent to the end of the reporting period, Astral confirmed (by way of a board resolution) that, in lieu of settling the J/V
contribution liability in cash, Astral would elect to dilute its participating interest down to 20%, effective from 1 July 2022.
All amounts are expected to be settled within 12 months.
16. Employee benefits
Current
Provision for annual leave
PAYG Withholding
Superannuation payable
2022
$
2021
$
119,326
40,678
11,784
171,788
105,400
40,758
15,185
161,343
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
63
Notes to the Consolidated Financial Statements
17. Lease liabilities
Current
Lease liability
Non‐current
Lease liability
2022
$
2021
$
77,111
45,173
39,956
117,067
18,788
63,961
18. Provision for rehabilitation
A provision has been made to cover the costs of rehabilitating the Company’s areas of interest. It is not expected that this will be
required in the next 12 months.
Non‐current
Feysville
Koongie Park
Mandilla
19. Issued capital
2022
$
26,800
3,567
56,540
86,907
2021
$
26,800
33,240
38,980
99,020
Ordinary shares – fully paid
596,179,239
589,008,384
57,438,927
56,409,068
2022
Shares
2021
Shares
2022
$
2021
$
(i) Movements in ordinary share capital
Date
Details
30‐Jun‐20
Balance
30‐Jun‐21
Balance
Conversion of Performance Rights
Share issue costs
30‐Jun‐22
Closing Balance
(ii) Terms and conditions of issued capital
No. of Shares
Issue Price
$
466,786,162
589,008,384
7,170,855
‐
596,179,239
‐
‐
‐
‐
43,575,908
56,409,068
1,029,859
‐
57,438,927
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in
proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
(iii) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities,
with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the
current working capital position against the requirements of the Group to meet exploration programs and corporate overheads.
The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view
to initiating appropriate capital raisings as required.
(iv) Unissued ordinary shares
Unissued ordinary shares of Astral Resources NL under option at the date of this report are as follows:
64
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
Tranche
Grant date
Expiry date
E
F
G
I
J
K
L
2‐Dec‐19
2‐Dec‐19
2‐Dec‐19
18‐Mar‐20
9‐Oct‐20
25‐Sep‐20
19‐Nov‐21
27‐Nov‐22
27‐Nov‐22
27‐Nov‐22
31‐Dec‐22
9‐Oct‐22
31‐Dec‐22
19‐Nov‐23
Total unlisted options on issue at the date of this report
20. Reserves
Exercise
price
$0.135
$0.135
$0.135
$0.15
$0.213
$0.34
$0.119
Number
1,000,000
1,000,000
1,000,000
1,250,000
2,000,000
6,000,000
3,000,000
15,250,000
Options reserve (i)
Performance rights reserve (ii)
Financial assets at fair value through other comprehensive income (iii)
2022
$
1,620,336
993,754
(35,000)
2,579,090
2021
$
1,537,548
1,456,827
‐
2,994,375
(i) Options reserve
The options reserve recognises options rights issued as share based payments. The following options were issued during the
prior year:
Options
Number
Reserve
Opening balance as at 1 July 2020
Exercise of $0.02 options expiring 30 November 2020
Exercise of $0.025 options expiring 30 November 2020
Exercise of $0.04 options expiring 30 November 2020
Exercise of $0.08 options expiring 30 November 2020
Options issued to consultant
Options issued to advisors
Share based payment expense (options issued prior to 1 July 2020)
30 June 2021
Options
Opening balance as at 1 July 2021
Expiry of options1
Options issued to Director
Share based payment expense (options issued prior to 1 July 2021)
30 June 2022
56,850,000
(29,800,000)
(10,100,000)
(2,500,000)
(8,950,000)
2,000,000
6,000,000
‐
1,080,108
‐
‐
‐
‐
117,159
307,225
33,056
13,500,000
1,537,548
Number
Reserve
13,500,000
(1,250,000)
3,000,000
‐
1,537,548
‐
75,164
7,624
15,250,000
1,620,336
(ii)
Performance rights reserve
The performance rights reserve recognises performance rights issued as share based payments. The following movements in
the performance rights reserve were recorded during the prior year:
Performance rights
Number
Reserve
Opening balance as at 1 July 2020
Performance Rights issued to director and employees
Share based payment expense (rights issued prior to 1 July 2020)
14,341,709
9,336,795
‐
9,828
422,054
255,534
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
65
Notes to the Consolidated Financial Statements
Performance Rights vested during the year1
30 June 2021
(7,170,855)
16,507,649
769,411
1,456,827
Performance rights
Number
Reserve
Opening balance as at 1 July 2021
Share based payment expense (rights issued prior to 1 July 2021)
Performance Rights vested and converted to ordinary shares1
Performance Rights expired/lapsed during the year2
30 June 2022
16,507,649
‐
‐
(9,336,795)
7,170,854
1,456,827
566,786
(1,029,859)
‐
993,754
1 ‐ Prior to 30 June 2021, the Board determined that the performance conditions attaching to 1,830,780 2020A Performance Rights
and 5,340,075 2020B Performance Rights (together, the Performance Rights) had been met. The Performance Rights were converted
to 7,170,855 fully paid ordinary shares on 7 July 2021.
2 – 2,382,216 2020C LTI Performance Rights and 3,939,574 2020D LTI Performance Rights automatically lapsed on 30 June 2022 due
to the performance conditions (as outlined in Note 23) not having been met.
(iii)
Financial assets at fair value through other comprehensive income
The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other
comprehensive income.
Movements in each class of reserve during the current and previous financial year are set out below:
Asset revaluation reserve
Opening balance as at 1 July 2021
Change in fair value
30 June 2022
Reserve
‐
(35,000)
(35,000)
On 10 January 2022, Astral executed an agreement with Ozz Resources Limited (ASX:OZZ) to dispose of its Leonora Base Metals
Project, comprising two exploration licences (E37/1287 and E37/1355). Astral received upfront consideration of $30,000 in cash and
500,000 OZZ shares. The OZZ shares have been revalued at period end, based on the closing share price of OZZ shares as at 30 June
2022.
21. Operating cash flow reconciliation
Reconciliation of operating cash flows to net profit/(loss)
Profit/(loss) for the year
Interest income reported under investment activities
Interest expense on lease liabilities
Share based payments
Depreciation expense
Impairment expense
Exploration expenditure written off
Net loss/(gain) on sale of exploration and evaluation assets
Loss on financial liabilities settled via equity
Change in operating assets and liabilities
Change in trade and other receivables
Change in trade and other payables
Cash flow from/(used in) operations
Non‐cash financing and investing activities
2022
$
(2,353,412)
(18,712)
6,498
649,574
90,409
168,271
4,053
(155,000)
‐
2,604
667,679
(938,036)
2021
$
(3,669,567)
(44,659)
3,290
1,597,213
77,580
464,190
20,337
‐
28,571
58,008
194,846
(1,270,191)
During the year, the Company incurred interest expense on lease liabilities of $6,501 (2021: $3,290).
There are no other non‐cash financing and investing activities other than the above.
66
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
22. Financial risk management
Overview
This note presents information about the Group’s exposure to credit, liquidity and market risks, the objectives, policies and processes
for measuring and managing risk, and the management of capital.
The Board has overall responsibility for the establishment and oversight of the risk management framework. Management monitors
and manages the financial risks relating to the operations of the Group through regular reviews of the risks.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual obligations
resulting in financial loss to the Group. Presently, the Group undertakes mineral exploration and evaluation activities in Australia.
At the balance sheet date, there were no significant concentrations of credit risk.
Cash and cash equivalents
(i)
The Group limits its exposure to credit risk by only investing with major Australian financial institutions. All cash and cash
equivalents are held with A+ rated financial institutions (2021: A+).
Trade and other receivables
(ii)
The Group’s trade and other receivables relates to government grant income, GST refunds and rental income.
The Group has determined that its credit risk exposure on trade and other receivables is low, as all counterparties are
considered reliable. Management does not expect any of these counterparties to fail to meet their obligations.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents (i)
Trade and other receivables (ii)
Total
Carrying Amount
2022
$
3,177,142
149,306
3,326,448
2021
$
9,807,468
75,683
9,883,151
(b) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The
Group manages liquidity risk by maintaining adequate cash reserves from capital raisings and by continually monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities. As at reporting date the Group had sufficient
cash reserves to meet its requirements in the short term, but announced a renounceable entitlement offer on 26 September 2022
(refer to Note 29). The Group therefore had no credit standby facilities or arrangements for further funding in place.
The financial liabilities of the Group at reporting date were trade payables incurred in the normal course of the business and lease
liabilities. Trade payables are non‐interest bearing and were due within the normal 30‐60 days terms of creditor payments. The
Group does not consider this to be material to the Group and have therefore not undertaken any further analysis of risk exposure.
The following are the contractual maturities of financial liabilities, including estimated interest payments. The carrying amount of
the Group’s financial liabilities approximate their carrying amount at reporting date.
30 June 2022
Carrying
Amount
Contractual
Cash Flows
12 Months or
Less
1‐2 years
2‐5 years
>5 years
Trade and other payables1
Lease liabilities
Total
1,181,963
117,067
1,299,030
1,181,963
130,193
1,312,156
1,181,963
86,075
1,268,038
‐
35,118
35,118
‐
9,000
9,000
‐
‐
‐
1 – Excludes the J/V contribution liability as set out in Note 15.
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
67
Notes to the Consolidated Financial Statements
30 June 2021
Trade and other payables
Lease liabilities
Total
Carrying
Amount
Contractual
Cash Flows
12 Months or
Less
1‐2 years
2‐5 years
>5 years
369,532
63,961
433,493
369,532
68,956
438,488
369,532
47,956
417,488
‐
6,000
6,000
‐
15,000
15,000
‐
‐
‐
(c) Market risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters.
Commodity risk
(i)
The Group is at a stage of development where it has little or no exposure to commodity price risk.
Interest rate risk
(ii)
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents and any interest‐bearing liabilities), which
is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest‐bearing
financial instruments. The Group does not use derivatives to mitigate these exposures.
Profile
At the reporting date, the interest rate profile of the Group’s interest‐bearing financial instruments was:
Variable rate instruments
Cash and cash equivalents
Carrying Amount
2022
$
2021
$
3,177,142
9,807,468
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would not materially affect equity and profit or loss after
tax.
(d) Fair values
The carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and interest‐bearing liabilities
is considered to be a fair approximation of their fair values. The carrying value of investments is based on the quoted prices in an
active market.
23. Share based payments
(a) Employee Incentive Plan
The Company’s Employee Incentive Plan (the Plan) was approved by shareholders at a general meeting held on 16 June 2020. The
Plan is intended to assist the Company to attract and retain key staff, including employees or contractors. The Board believes that
grants made to eligible participants under the Plan will provide a powerful tool to underpin the Company's employment and
engagement strategy, and that the Plan will:
enable the Company to incentivise and retain existing key management personnel and other eligible employees and contractors
needed to achieve the Company's business objectives;
enable the Company to recruit, incentivise and retain additional Key Management Personnel, and other eligible employees and
contractors, needed to achieve the Company's business objectives;
link the reward of key staff with the achievement of strategic goals and the long‐term performance of the Company;
align the financial interest of participants of the Plan with those of shareholders; and
provide incentives to participants under the Plan to focus on superior performance that creates shareholder value.
Under the Plan, eligible Directors, employees and contractors may be invited to subscribe for Options and Performance Rights, in
order to increase the range of potential incentives available for eligible Directors, employees and contractors. Participation in the
68
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
plan is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed
benefits.
Incentive securities (performance rights and options) issued under the Plan are subject to vesting and performance conditions
imposed by the Board. Incentive securities granted under the plan carry no dividend or voting rights. Only upon satisfaction of vesting
and performance conditions and conversion to ordinary shares, will these incentive securities rank equally with all other shares.
(b) Unlisted options
Options over ordinary shares have been issued for nil cash consideration. The options cannot be transferred and will not be quoted
on the ASX. Therefore, no voting rights are attached to the options unless converted into ordinary shares. All options are granted at
the discretion of the Board. The terms and conditions of options on issue at 30 June 2022 are as follows:
Tranche
Number
Grant Date
Expiry Date
E
F
G
I
J1
K
L
1,000,000
1,000,000
1,000,000
1,250,000
2,000,000
6,000,000
3,000,000
2‐Dec‐19
2‐Dec‐19
2‐Dec‐19
18‐Mar‐20
9‐Oct‐20
25‐Sep‐20
19‐Nov‐21
27‐Nov‐22
27‐Nov‐22
27‐Nov‐22
31‐Dec‐22
9‐Oct‐22
31‐Dec‐22
19‐Nov‐23
Total
15,250,000
1 ‐ Options issued under the Company’s Employee Incentive Plan.
Exercise
Price
(cents)
13.50
13.50
13.50
15.00
21.30
34.00
11.9
Fair Value at
Grant Date
Vesting Date
$0.0359
$0.0359
$0.0359
$0.0425
$0.0586
$0.0512
$0.025
2‐Dec‐19
27‐Nov‐20
27‐Nov‐21
18‐Mar‐20
9‐Oct‐20
25‐Sep‐20
19‐Nov‐21
There have been no alterations of the terms and conditions of the above share‐based payment arrangement since grant date.
The following table illustrates the number and weighted average exercise prices of and movements in share options during the year:
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the end of year
Exercisable at the end of year
Weighted average remaining contractual life of
options outstanding at the end of year
2022
2021
Number
Weighted Average
Exercise Price
$
13,500,000
3,000,000
‐
‐
(1,250,000)
15,250,000
15,250,000
$0.239
$0.119
‐
‐
$0.133
$0.224
$0.224
Number
56,850,000
8,000,000
‐
(51,350,000)
‐
13,500,000
12,500,000
Weighted Average
Exercise Price
$
$0.038
$0.269
‐
$0.032
‐
$0.239
$0.247
0.63 years
1.36 years
The fair values of the equity settled share options granted are estimated as at the date of the grant using the Black‐Scholes model taking
into account the terms and conditions upon which the options were granted.
The terms and conditions of each grant of unquoted options affecting share‐based payment expenditure in the current or a future
reporting period are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Vesting Date
E
F
G
J
K
L
Director Options
02‐Dec‐19
1,000,000
Director Options
02‐Dec‐19
1,000,000
Director Options
02‐Dec‐19
1,000,000
Consultant Options
9‐Oct‐20
2,000,000
Advisor Options
25‐Sep‐20
6,000,000
Director Options
19‐Nov‐19
3,000,000
$0.135
$0.135
$0.135
$0.213
$0.34
$0.119
27 Nov 2022
Immediate
27 Nov 2022
27 Nov 2020
27 Nov 2022
27 Nov 2021
9‐Oct‐22
Immediate
31‐Dec‐22
Immediate
19‐Nov‐23
Immediate
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
69
Notes to the Consolidated Financial Statements
The Options were valued using a Black‐Scholes Model with the following inputs:
Tranche
Valuation Date
Expected
Volatility
Risk‐Free
Interest Rate
Expiry
Underlying
Share Price
E
F
G
J
K
L
02‐Dec‐19
02‐Dec‐19
02‐Dec‐19
9‐Oct‐20
25‐Sep‐20
17‐Nov‐21
80%
80%
80%
80%
85%
67%
0.70%
0.70%
0.70%
0.35%
0.35%
0.16%
27 Nov 2022
27 Nov 2022
27 Nov 2022
9‐Oct‐22
31‐Dec‐22
19‐Nov‐23
$0.088
$0.088
$0.088
$0.213
$0.17
$0.09
Value per
Options
($)
0.0359
0.0359
0.0359
0.0586
0.0512
0.025
Total
Value
($)
35,909
35,909
35,909
117,159
307,225
75,164
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The
expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be
the actual outcome. No other features of options granted were incorporated into the measurement of fair value.
(c) Performance Rights
No performance rights were granted during the year.
Performance rights issued in prior periods which affect share‐based payment expenditure in the current or future reporting periods
are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
2020A
Director performance
rights
16‐Jun‐20
1,830,780
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
23‐Jun‐24
Non‐
transferable
2020B
Employee / consultant
performance rights
23‐Jun‐20
5,340,074
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
23‐Jun‐24
Non‐
transferable
2020C
LTI
Director performance
rights (2020C LTI)1
15‐Jul‐20
2,382,216
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30‐Jun‐22
Non‐
transferable
2020D
LTI
Employee / consultant
performance rights
(2020D LTI)2
6‐Oct‐20
6,954,579
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30‐Jun‐22
Non‐
transferable
1 – 2,382,216 2020C LTI Performance Rights automatically lapsed on 30 June 2022 due to the performance conditions (as outlined below) not having
been met.
2 – 6,954,579 2020D LTI Performance Rights automatically lapsed on 30 June 2022 due to the performance conditions (as outlined below) not having
been met.
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
70
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
2020A/2020B Performance Rights
The 2020A and 2020B performance rights shall vest on the later date to occur of:
a)
the date when the milestone shown in the table below is met; and
Performance / Vesting Condition and Performance Period
Extent to which
Performance Rights vest
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 1,000,000 ounces.1
100%
1 – No share based payment expense has been recognised for performance rights associated with this milestone.
b)
the date when the holder gives a notice to the Company confirming that the holder would like the Performance Rights to vest.
The performance rights issued are subject to non‐market vesting conditions. The performance rights were valued based upon the
share price at the deemed grant date.
Tranche
2020A
2020B
Grant
Date
16‐Jun‐20
23‐Jun‐20
2020C LTI Performance Rights
Number of Instruments
Valuation at grant date
1,830,780
5,340,074
$0.125
$0.15
The 2020C LTI Performance Rights which do not meet the performance/vesting conditions by the end of the performance period
will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 1 January 2020.
The performance rights issued are subject to both market and non‐market vesting conditions. The performance rights were valued
using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for the performance
rights.
2020D LTI Performance Rights
The 2020D LTI Performance Rights which do not meet the performance/vesting conditions by the end of the performance period
will automatically lapse. The following performance and vesting conditions apply:
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
71
Notes to the Consolidated Financial Statements
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on the 30 trading
days prior to 1 July 2020.
The performance rights issued are subject to both market and non‐market vesting conditions. The performance rights were valued
using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for the performance
rights.
Tranche
Grant
date
Number of Instruments
Valuation at grant date
2020C LTI
2020D LTI (I)
15‐Jul‐20
6‐Oct‐20
2020D LTI (II)
31‐May‐21
2,382,216
5,760,517
1,194,062
$0.1049
$0.1218
$0.0312
(d) Expenses arising from share‐based payment transactions
Total expenses arising from share‐based payment transactions recognised during the year as part of share‐based expense were as
follows:
Recognised in Statement of Profit or Loss
Performance rights issued to directors and employees (issued in prior year)
Options issued to director (current and prior year)
Options issued to consultant
Recognised in Statement of Financial Position (Assets and/or Equity)
Options issued to advisors
Shares issued as consideration for extinguishment of royalty1
2022
$
566,786
82,788
‐
2021
$
1,446,999
33,056
117,158
649,574
1,597,213
‐
‐
‐
307,225
228,571
535,796
649,574
2,133,009
Includes share‐based payment consideration, in which the value of share‐based payment consideration is subject to the provisions of
AASB Interpretation 19 – Extinguishing Financial Liabilities with Equity Instruments.
72
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
1 ‐ On 6 August 2020, the Company issued 1,142,588 ordinary shares at a deemed issue price of $0.175 per share (nominal value of
AUD$200,000) to eliminate a third‐party royalty held over tenement M15/633 of the Mandilla Gold Project. The royalty entitled the
holders to receive $1 per tonne of gold ore mined and treated from M15/633.
24. Contingent liabilities
The Group has given a bank guarantee at 30 June 2022 of $21,414 (2021: bank guarantee of $13,365) (refer to Note 9).
25. Commitments
(a) Exploration expenditure
In order to maintain mining tenements, the economic entity is committed to meet the prescribed conditions under which tenements
were granted. These commitments may be met in the normal course of operations by future capital raisings and/or farm‐out and
under certain circumstances are subject to the possibility of adjustment to the amount and timing of such obligations or by tenement
relinquishment.
30 June 2022
Exploration expenditure commitments
Payable:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Total
30 June 2021
Exploration expenditure commitments
Payable:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Total
Mandilla
$
Feysville
$
Koongie Park1
$
Other
$
Total
$
119,936
434,012
348,403
902,351
54,608
6,992
‐
61,600
73,515
147,414
51,459
272,388
53,449
160,591
40,565
254,605
301,508
749,009
440,427
1,490,944
Mandilla
$
Feysville
$
Koongie Park1
$
Other
$
Total
$
139,936
512,400
398,115
1,050,450
22,116
24,760
‐
46,876
‐
‐
‐
‐
42,932
32,164
‐
204,983
569,325
398,115
75,096
1,172,423
1 – Expenditure commitments relating to Koongie Park are to be met by AuKing Mining Limited (75%) and Astral Resources NL (25%),
in accordance with the terms of the Joint Venture Agreement. Should Astral Resources NL not wish to contribute, its 25% interest in
the Joint Venture will be diluted accordingly. On 2 September 2022, subsequent to the end of the reporting period, Astral confirmed
(by way of a board resolution) that, rather than meet the Astral JV Contribution it would elect to dilute its participating interest down
to 20%, effective from 1 July 2022.
26. Related party transactions
(a)
Key management personnel
Disclosures relating to compensation of key management personnel are set out in Note 23 and in the Remuneration Report included
in the Directors’ Report. Key management personnel covered in this report are listed below in Figure 19.
Figure 19: Directors (executive and non‐executive)
Name
Mr Leigh Warnick
Mr Marc Ducler
Mr Justin Osborne
Mr Peter Stern
Mr David Varcoe
Mr John Jones
Position
Chairman
Managing Director
Non‐Executive Director (from 18 November 2021)
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director (to 16 November 2021)
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
73
Notes to the Consolidated Financial Statements
Figure 20: Other key management personnel
Name
Jed Whitford
Brendon Morton
Julie Reid
Position
General Manager Projects & Business Development
Chief Financial Officer & Company Secretary
Geology Manager
(b)
Compensation of KMP
The aggregate compensation paid to directors and other members of key management personnel of the Group is set out below:
Short‐term employee benefits
Post‐employment long term benefits
Share based payments
Total
2022
$
1,178,513
96,539
487,157
1,762,209
2021
$
1,125,007
86,977
1,169,130
2,381,114
As required by Corporations Regulation 2M.3.03, information regarding individual Directors’ and Executives’ compensation and
equity instrument disclosures is provided in the Remuneration Report section of the Directors’ Report.
During the current period, 6,321,790 performance rights were awarded to key management personnel. See Note 23 and the
Remuneration Report for further details of these related party transactions.
Performance Rights
No performance rights were issued during the year.
In the previous financial year, the Board determined that the performance conditions attaching to 1,830,780 2020A Performance
Rights and 5,340,075 2020B Performance Rights (together, the Performance Rights) had been met. The Performance Rights were
converted to 7,170,855 fully paid ordinary shares on 7 July 2021.
(c) Compensation by category of KMP
Consulting fees were paid to directors, with the exception of Mr Justin Osborne and Mr John Jones who elected to receive their non‐
executive director fees as a salary. Details of the remuneration of directors are included in the Remuneration Report contained in the
Directors’ Report.
Salaries were paid to all other key management personnel, details of which are included in the Remuneration Report contained in
the Directors’ Report.
(d) Loans to/from related parties
There were no loans to or from key management personnel outstanding at 30 June 2022 (2021: nil).
(e) Other transactions and balances with related parties
The following transactions occurred with related parties and are summarised below:
Payment for goods and services
2022
$
2021
$
50,000
50,000
Metropolis Pty Ltd, a company of which Peter Stern is a Director, received $50,000 excluding GST (2021: $50,000) during the year for
non‐executive directors fees, of which $12,500 related to fees owing at 30 June 2021. An amount of $12,500 was invoiced but unpaid
at 30 June 2022 (2021: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June 2022 that
are not already included in the Remuneration Report contained in the Directors’ Report.
There were no other transactions and outstanding balances with other related parties for the year ended 30 June 2022.
74
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
27. Interests in Subsidiaries
(a)
Parent entities
Astral Resources NL is the ultimate Australian parent entity.
(b)
Subsidiaries
The consolidated financial statements include the financial statements of Astral Resources NL and the subsidiaries listed in the
following table.
2022
2021
Country of
Incorporation
% Equity
Interest
Country of
Incorporation
% Equity
Interest
Mandilla Gold Pty Ltd
Feysville Gold Pty Ltd
Koongie Park Gold Pty Ltd
Koongie Park Pty Ltd
Australia
Australia
Australia
Australia
100
100
100
100
Australia
Australia
Australia
Australia
28. Auditor’s remuneration
Audit Services
Amounts received or due and receivable by BDO Audit (WA) Pty Ltd
‐ An audit and review of the financial reports of the Group
(including subsidiaries)
Non‐Audit Services
Total
100
100
100
100
2022
$
39,817
‐
39,817
Principal Activity
Operating subsidiary
Operating subsidiary
Operating subsidiary
Operating subsidiary
2021
$
38,960
‐
38,960
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
75
Notes to the Consolidated Financial Statements
29. Events after the reporting date
On 26 September 2022, the Company announced a renounceable entitlement offer of one (1) new share for every ten (10) shares
held by eligible shareholders at an issue price of $0.065 per new share together with one (1) free‐attaching new option for every two
(2) new shares issued, to raise approximately $3.9 million (before costs) (Entitlement Offer).
On 2 September 2022, Astral confirmed (by way of a board resolution) that it had elected to dilute its participating interest in the
Koongie Park Joint Venture down to 20%, rather than meet the Astral JV Contribution amount of $441,831.
The Company released the following market sensitive ASX Announcements since the end of the financial year.
Date
5‐Jul‐22
13‐Jul‐22
10‐Aug‐22
23‐Aug‐22
20‐Sep‐22
21‐Sep‐22
26‐Sep‐22
Details
Eos AC Results Show Potential for Mandilla Resource Growth
Extensive New Zone of Mineralisation Delineated at Mandilla
Mandilla Set for Resource Growth as Theia Continues to Deliver
More High Grade Results at Eos ahead of MRE Update
AKN: moves to 80% of Koongie Park
Mandilla’s Theia Deposit Extended at Depth
Prospectus – Entitlement Offer
No other matters or circumstances have arisen since the end of the year which significantly affected or may significantly affect the
operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
30. Parent entity information
The following details information related to the parent entity, Astral Resources NL, as at 30 June 2022. The information presented
here has been prepared using consistent accounting policies as presented in Note 1.
Current assets
Non‐current assets
Total assets
Current liabilities
Non‐current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Loss after income tax *
Other comprehensive income/ (loss) for the period
Total comprehensive loss for the period
* Includes an impairment charge of nil (2021: $160,853).
Commitments
2022
$
3,326,448
19,465,117
22,791,566
1,872,694
100,063
1,972,757
2021
$
9,842,392
13,341,553
23,183,945
535,290
91,008
626,298
20,818,809
22,557,647
57,438,927
2,579,090
(39,199,208)
20,818,809
(2,609,426)
(2,609,426)
(2,609,426)
56,409,068
2,922,820
(36,774,241)
22,557,647
(3,437,159)
(3,437,159)
(3,437,159)
The parent entity has $1,166,955 (2021: $1,125,547) of commitments relating to minimum exploration expenditure on its various
tenements at financial year end. These minimum exploration expenditure commitments are included in Note 25.
Guarantees
The parent entity has given a bank guarantee of $21,414 as at 30 June 2022 (2021: bank guarantee of $13,365) (refer to Note 9).
76
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Director’s Declaration
Director’s Declaration
In the Directors’ opinion:
(a)
The financial statements and notes are in accordance with the Corporations Act 2001, and:
(i)
(ii)
(iii)
comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
give a true and fair view of the financial position as at 30 June 2022 and of the performance of the Group for the period
ended on that date; and
are in accordance with International Financial Reporting Standards issued by the International Accounting Standards
Board, as stated in Note 1 to the financial statements.
(b) There are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.
The Directors have been given the declarations by the Managing Director and the Chief Financial Officer as required by section 295A
of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by;
Marc Ducler
Managing Director
Perth, Western Australia
30 September 2022
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
77
ASX Additional Information
ASX Additional Information
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report is set out below.
1.
Shareholdings
The issued capital of the Company as at 31 August 2022 is 596,179,239 ordinary fully paid shares and 15,250,000 unlisted options
(details below). All issued ordinary fully paid shares carry one vote per share.
Ordinary Shares
Shares Range
1‐1,000
1,001‐5,000
5,001‐10,000
10,001‐100,000
100,001 and above
Total
Unmarketable parcels
Holders
86
88
413
897
427
1,911
Units
17,868
293,524
3,351,282
34,004,072
558,512,493
596,179,239
%
0.00%
0.05%
0.56%
5.70%
93.68%
100.00%
There were 213 holders of less than a marketable parcel of ordinary shares.
2. Top 20 Shareholders as at 31 August 2022
#
1
2
3
4
5
Name
Porter Street Investments Pty Ltd
Braham Consolidated Pty Ltd
Braham Investments Pty Ltd
ACN 106 966 401 Pty Ltd
HSBC Custody Nominees (Australia) Limited
6 Mr Peter Andrew Stern
7
8
S Loader Pty Ltd
Brazil Farming Pty Ltd
9 Mr Graeme Ian Smith
10
11
C Thwaites Pty Ltd
Citicorp Nominees Pty Limited
12 Wise Plan Pty Ltd
13 Mrs Sabina Fontana
13 Mr Matthew Lloyd Haddon
14
15
Brazil Farming Pty Ltd
D & P Buckley Pty Ltd
16 Mrs Angela Orsaris & Mr Joseph Christopher Marsili
17 Mrs Peggy Patricia Buckley
18
19
El‐Raghy Kriewaldt Pty Ltd
Mrs Fiona Louise Leahy
20 M & R Haddon Pty Ltd
Total Top 20
Total remaining holders balance
Total
Number of shares
62,374,703
31,943,462
26,769,295
24,720,588
21,210,277
17,166,667
17,161,105
12,500,000
11,200,000
9,603,400
9,237,416
9,005,316
7,000,000
7,000,000
6,647,059
5,281,829
5,254,837
5,100,000
5,000,000
4,888,862
4,730,000
303,794,816
292,384,423
596,179,239
%
10.46%
5.36%
4.49%
4.15%
3.56%
2.88%
2.88%
2.10%
1.88%
1.61%
1.55%
1.51%
1.17%
1.17%
1.11%
0.89%
0.88%
0.86%
0.84%
0.82%
0.79%
50.96%
49.04%
100.00%
78
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
ASX Additional Information
3. Unquoted securities
There are 15,250,000 unlisted options over shares in the Company as at 31 August 2022 as follows:
Tranche
Grant date
Expiry date
E
F
G
I
J
K
L
2‐Dec‐19
2‐Dec‐19
2‐Dec‐19
6‐Aug‐20
9‐Oct‐20
15‐Sep‐20
19‐Nov‐21
27‐Nov‐22
27‐Nov‐22
27‐Nov‐22
31‐Dec‐22
9‐Oct‐22
31‐Dec‐22
19‐Nov‐23
Exercise
price
$0.135
$0.135
$0.135
$0.15
$0.213
$0.34
$0.119
Total unquoted options on issue
There are 7,170,854 performance rights on issue as at 31 August 2022 as follows:
Tranche
Class of Securities
Grant Date
Exercise Price
B
D
Director performance
rights
(2020A)
Employee / consultant
performance rights
(2020B)
23‐Jun‐20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
23‐Jun‐20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
number
1,000,000
1,000,000
1,000,000
1,250,000
2,000,000
6,000,000
3,000,000
15,250,000
Expiry
Date
Number of
Securities
23‐Jun‐24
1,830,780
23‐Jun‐24
5,340,074
Total performance rights on issue
7,170,854
The names of the security holders holding more than 20% of an unlisted class of security are listed below:
Security
Options expiring 27
November 2022
Options expiring 31
December 2022
Options expiring 9 October
2022
Options expiring 31
December 2022
Options expiring 19
November 2023
Exercise
Price
Number of
options
Number of
holders
Holders with > 20%
$0.135
3,000,000
1 David John Varcoe
$0.15
1,250,000
1
CG Nominees (Australia) Pty Ltd
$0.213
2,000,000
1 Mr Edward John Baltis
$0.34
6,000,000
2
CG Nominees (Australia) Pty Ltd – 50%
Circumference Capital Ct Pty Ltd – 50%
$0.119
3,000,000
1
Janet Tunjic Pty Ltd
Total
15,250,000
4. Voting rights
See Note 19 of the financial statements.
5.
Substantial shareholders at 31 August 2022
Holder
John Load Cecil Jones / Porter Street Investments Pty Ltd
Braham Investments Pty Ltd / Braham Consolidated Pty Ltd and Simon
Anthony Richard Braham
Timothy Patrick Burke
Number of
shares held
% of issued capital
held
Date of last notice
66,586,764
58,712,757
33,725,904
11.17%
9.85%
5.66%
6‐Oct‐20
7‐Oct‐20
2‐May‐22
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
79
ASX Additional Information
6. Restricted securities subject to escrow period
There are currently no securities on issue subject to escrow.
7. On‐market buyback
There is currently no on‐market buyback program for any of Astral Resources NL’s listed securities.
80
ASTRAL RESOURCES NL / ANNUAL REPORT 2022
Astral Resources
Suite 2, 6 Lyall Street, South Perth, WA 6151
info@astralresources.com.au
+61 8 9382 8822