ASTRAL RESOURCES NL
AND ITS CONTROLLED ENTITIES
ABN 24 651 541 976
Annual Report
For the year ended 30 June 2023
Astral Resources NL Annual Report 30 June 2023
Contents
Corporate Directory ............................................................................................................................................................. 3
Review of Operations .......................................................................................................................................................... 4
Directors’ Report ............................................................................................................................................................... 28
Auditor’s Independence Declaration ................................................................................................................................. 45
Independent Auditor’s Report ............................................................................................................................................ 46
Consolidated Statement of Profit or Loss and Other Comprehensive Income .................................................................. 50
Consolidated Balance Sheet ............................................................................................................................................. 51
Consolidated Statement of Cash Flows ............................................................................................................................ 52
Consolidated Statement of Changes in Equity .................................................................................................................. 53
Notes to the Consolidated Financial Statements ............................................................................................................... 54
Director’s Declaration ........................................................................................................................................................ 82
ASX Additional Information ............................................................................................................................................... 83
Astral Resources NL Annual Report 30 June 2023
2
Corporate Directory
This financial report includes the consolidated financial statements and notes of Astral 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 Yellagonga 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
Astral Resources NL Annual Report 30 June 2023
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Review of Operations
The principal activity of Astral Resources NL (Astral or the Company) during the financial year was progressing the Company’s
100% owned Mandilla Gold Project (Mandilla) and recommencing exploration on the Feysville Gold Project (Feysville).
Mandilla remained the focus of significant exploration and resource definition effort during the financial year, with more
than 32 kilometres of drilling completed (refer to Figure 1). This included 7,253 metres of diamond drilling (DD), 22,722
metres of reverse circulation (RC) drilling and 2,335 metres of air-core (AC) drilling.
The significant investment in exploration and resource definition drilling culminated in Astral issuing two Mineral Resource
Estimate (MRE) upgrades during and subsequent to the end of the financial year, including the following:
On 6 December 2022, the Company reported an updated JORC 2012 MRE for Mandilla of 30 million tonnes at 1.1g/t
Au for 1.03 million ounces of contained gold (December 2022 MRE). This represented a 32% increase in contained
ounces compared to the previous MRE, reported January 2022.
On 20 July 2023 (subsequent to the end of the financial year), the Company announced an updated JORC 2012 MRE of
37 million tonnes at 1.1g/t Au for 1.27 million ounces of contained gold (July 2023 MRE). This represented an increase
of 22% in contained ounces compared to the December 2022 MRE and a combined increase since January 2022 of 62%
in contained ounces for the project. The July 2023 MRE is included in this Review of Operations.
In August 2023, subsequent to the end of the financial year, a 5,000 metre RC drilling program commenced at Mandilla.
During the year, the Company undertook exploration drilling activities at Feysville for the first time in over three years. A
total of 3,834 metres of drilling were completed at Feysville during the year, comprising 2,446 metres of RC drilling and 1,395
metres of DD (refer to Figure 1). An additional 3,202 metre RC drilling program was completed during August 2023
(subsequent to the end of the financial year).
Figure 1 – FY23 Drilling (by month and project)
MANDILLA GOLD PROJECT
Astral – 100%
Mandilla is situated in the northern Widgiemooltha greenstone belt, 70 kilometres south of the significant mining centre of
Kalgoorlie, Western Australia. The location of Mandilla in relation to Kalgoorlie and other nearby towns and gold projects is
set out in Figure 2.
Astral Resources NL Annual Report 30 June 2023
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Figure 2 – Project Location Map.
The Mandilla Gold Project includes the Theia, Iris, Eos and Hestia deposits.
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. These structures are considered important in localising gold mineralisation at Theia,
which now has a mineralised footprint extending over a strike length of more than 1.5 kilometres.
A second sub-parallel structure hosts gold mineralisation at the Iris deposit. The mineralised footprint at Iris extends over a
strike length of approximately 700 metres, combining with Theia to form a mineralised zone extending over a strike length
of more than 2.2 kilometres.
At Eos, located further to the south-east, a relatively shallow high-grade mineralised palaeochannel deposit has been
identified with fresh rock mineralisation intercepted below the palaeochannel within the granitoid.
Mineralisation delineated over approximately 800 metres of strike at the Hestia deposit, located approximately 500 metres
west of Theia, is associated with a shear zone, adjacent to a mafic/sediment contact, interpreted to be part of the major
north-south trending group of thrust faults known as the Spargoville Shear Corridor.
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 Au).
The mineralisation at Hestia, which is present in a different geological setting to the primary mineralisation at Theia and Iris,
remains open both down-dip and along strike.
Astral Resources NL Annual Report 30 June 2023
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Metallurgical testing undertaken on the Theia Deposit has demonstrated high gravity recoverable gold, fast leach kinetics
and exceptional overall gold recoveries with low reagent consumptions and coarse grinding.
Mandilla is covered by existing mining leases which are not subject to any royalties other than the standard WA Government
gold royalty.
Image 1 – RC Drilling at Mandilla
Image 2 – Aerial View of Mandilla (Aug-23)
Astral Resources NL Annual Report 30 June 2023
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Figure 3: Mandilla Local Area Geology (including significant recent intercepts).
Astral Resources NL Annual Report 30 June 2023
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Mandilla Scoping Study
On 21 September 2023 (subsequent to the end of the financial year), the Company announced the results of a positive Scoping Study
for Mandilla (Study). Mandilla is one of the largest undeveloped free-milling open pit gold development projects in the Kalgoorlie
region. The Study was based on a standalone development, including a 2.5Mtpa CIL processing plant and associated infrastructure,
identified as the optimum commercialisation strategy for Mandilla.
Highlights of the Study included the following:
Life-of-mine (LoM) payable metal production target of 845koz at an All-In Sustaining Cost (AISC) of approximately $1,648 per
ounce.
Projected average annual gold production target of approximately 100kozpa at an average feed grade of 1.30g/t Au over the
first 7.4-year period, reducing to a projected average gold production target of approximately 41kozpa at an average feed grade
of 0.50g/t Au when treating lower grade stockpiles over the remaining 3.4-year period.
Total estimated pre-production capital of approximately $191 million, inclusive of:
Processing plant & non-process infrastructure CAPEX ($123 million); and
Pre-production mining and general & administrative costs ($68 million).
Study generates compelling financials for Mandilla, using a A$2,750/oz gold price:
o
o
Free cash flow – $740 million
o
o Net present value (8%) – $442 million
o
o
o All-in sustaining costs – $1,648 per ounce
Internal rate of return – 73%
Payback period – 0.75 years
Study based on the Mineral Resources defined at Mandilla only. Further upside from ongoing exploration at Mandilla targeting
resource growth as well as the inclusion of the nearby Feysville Gold Project as a potential future satellite ore source.
Mineral Resource Estimate (MRE)
On 20 July 2023 (subsequent to the end of the financial year), the Company announced an updated Mandilla JORC 2012 Mineral
Resource Estimate (MRE) of 37 million tonnes at 1.1g/t Au for 1.27 million ounces of contained gold, encompassing the cornerstone
Theia Deposit and the Iris, Eos and Hestia Deposits (refer to Table 1, Table 2, and Table 3). The MRE was prepared by independent
consultant Cube Consulting in accordance with the JORC Code (2012 Edition).
This represented the fifth MRE published for Mandilla within 26 months and added 231koz of contained gold to the previous MRE at
an exploration cost of approximately $18 per new ounce discovered and a total increase of 62% of 486koz over the reporting period.
This remains a low discovery cost in industry terms despite a substantial proportion of the drilling being focussed on in-fill drilling to
increase resource confidence, as well as extensional drilling to increase the resource. The significant growth achieved by each of the
MRE updates is displayed in Figure 4 below. Importantly, Figure 4 demonstrates Astral’s ability to continue to grow its Mineral
Resources whilst substantially increasing the geological confidence.
Astral Resources NL Annual Report 30 June 2023
8
Mandilla Mineral Resources Ounces - Growth
262.6
237.8
341.5
324.1
453
331
571
694
624
410
)
0
0
0
'
(
s
e
c
n
u
O
d
o
G
l
1400
1200
1000
800
600
400
200
0
May-21
Aug-21
Jan-22
Dec-23
Jul-23
Mandilla MRE Reported
Indicated
Inferred
Gold ounces
Figure 4 – Mandilla MRE Growth
The MRE was estimated using a 0.39g/t Au lower cut-off and is constrained within pit shells derived using a gold price of AUD$2,500
per ounce (consistent with the previous MRE).
The MRE is summarised in Table 1 below, a detailed breakdown by deposit is provided in Table 2 and a grade and tonnage sensitivity
by cut-off grade is provided in Table 3.
Table 1 – Mandilla Mineral Resource Estimate (July 2023)
Mineral Resource Estimate for the Mandilla Gold Project (Cut-Off Grade >0.39g/t Au)
Classification
Indicated
Inferred
Total
Tonnes (Mt)
21
17
37
Grade (g/t Au)
1.1
1.1
1.1
Au Metal (koz)
694
571
1,265
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.
Astral Resources NL Annual Report 30 June 2023
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Table 2 – Mandilla MRE (July 2023) by Source
Deposit
Theia
Iris
Eos
Hestia
Total
Classification
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Tonnes (Mt)
17
12
29
0.4
4.0
4.4
0.6
0.5
1.0
2.7
0.2
2.9
37
Grade (g/t Au)
1.1
1.1
1.1
0.8
0.8
0.8
1.6
1.3
1.5
0.9
0.8
0.9
1.1
Au Metal (koz)
573
447
1,021
11
103
115
29
19
48
78
4
82
1,265
All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.
Table 3 – Mandilla MRE (July 2023) by Cut-off Grade
Cut-off grade (g/t Au)
0.30
0.35
0.39
0.40
0.45
0.50
Tonnes (Mt)
43
40
37
37
34
31
Grade (g/t)
1.0
1.0
1.1
1.1
1.1
1.2
Au Metal (koz)
1,332
1,298
1,265
1,258
1,215
1,171
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 plan view in Figure 5 below.
The sections referenced in this report are also annotated on this plan.
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Figure 5 – July 2023 MRE optimised pit shell and section locations on local area geology.
Astral Resources NL Annual Report 30 June 2023
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Theia Deposit
Theia is the cornerstone deposit at Mandilla, representing approximately 81% of the reported MRE. The total MRE at Theia is 29Mt
at 1.1g/t Au for 1.02Moz of contained gold.
Section 1, as illustrated in Figure 6 below, shows a cross-section of the Theia deposit as previously reported on 6 December 2022.
The cross-section also shows the December 2022 optimised pit shell, the current July 2023 optimised pit shell and the new July 2023
MRE model.
Note that the cross-section illustrates the additional Mineral Resources at depth which has enabled the removal of the “saddle” at
the base of the pit (December 2022 optimised pit outline) and driven the July 2023 pit optimisation deeper. The identification of
further mineralisation at depth is only limited by the current depth of drilling on this section.
Figure 6 – Theia cross-section view (refer Figure 5 for section location).
Section 2, as illustrated in Figure 7 below, shows a longitudinal projection of Theia as previously reported on 6 December 2022.
The additional Mineral Resources on this section are best highlighted by the increased depth of the July 2023 pit optimisation as
compared to that of December 2022.
Astral Resources NL Annual Report 30 June 2023
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Figure 7 – Theia longitudinal projection view (refer Figure 3 for section location).
Drilling to date at Theia has demonstrated the potential for in-fill drilling within the constrained pit shell to contribute to resource
growth. Drilling perpendicular to the interpreted maxima stress field has assisted with the growth of the MRE at Theia, providing
multiple successful targets with further targets at depth expected to be tested as part of the upcoming drilling program.
Subsequent to the end of the financial year, the Company completed a diamond core re-logging exercise to add further detail to
structural and veining information already collected. A structural review is in progress and due to be completed in late September
will likely lead to additional DD targets at depth and potentially advance the understanding of the high-grade trends intersected at
depth during the most recent drilling program.
Importantly, a significant number of the deeper DD holes have ended in mineralisation, suggesting Theia remains open – and highly
prospective – at depth.
Section 3, as illustrated in Figure 8 below, shows a longitudinal projection of the south-east of Theia. The recent RC infill drilling
program delineated additional gold mineralisation at depth in this area.
Following completion of the structural review, the potential to test for faulted offset gold mineralisation at depth will be evaluated.
Astral Resources NL Annual Report 30 June 2023
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Figure 8 – Theia south-east longitudinal projection view (refer Figure 5 for section location).
Iris Deposit
The July 2023 MRE at Iris was largely unchanged from that reported previously at 4.4Mt at 0.8g/t Au for 115koz of contained gold.
Eos Deposit
At Eos, an additional 13 RC holes for 1,946 metres were included in the July 2023 MRE as compared to the December 2022 MRE.
The RC program tested for fresh rock mineralisation to the south-east of the Eos paleochannel, coincident with a previously identified
demagnetised zone within the Emu Rocks Granite.
The paleochannel deposit MRE remained largely unchanged at 0.8Mt at 1.6g/t Au for 41koz of contained gold, as no additional
drilling was completed within the paleochannel deposit.
The fresh rock zone of mineralisation identified with the RC program completed during the first half of calendar year 2023, returned
a maiden Inferred MRE of 0.2Mt at 1.0g/t Au for 7koz of contained gold. This modest fresh rock Mineral Resource requires further
drilling to determine both its orientation and potential extent to the north and south.
Section 4, as illustrated in Figure 9 below, shows a cross-section view of both the Eos paleochannel and the new fresh rock MRE.
Astral Resources NL Annual Report 30 June 2023
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Figure 9 – Eos cross-section view (refer Figure 5 for section location).
Hestia Deposit
The total July 2023 MRE at Hestia is 2.9Mt at 0.9g/t Au for 82koz of contained gold. This represents a 583% increase in resources
and a 12% increase in grade as compared to the December 2022 MRE. Pleasingly, 95% of the MRE at Hestia is in the higher confidence
Indicated category.
Section 5, as illustrated in Figure 10 below, shows a longitudinal projection of Hestia as previously reported on 6 December 2022.
The successful in-fill drill program is best demonstrated by the significant growth in the July 2023 optimised pit outline compared to
the maiden December 2022 MRE optimised pit outline.
Figure 10 – Hestia long projection view (refer Figure 5 for section location)
Astral Resources NL Annual Report 30 June 2023
15
EXPLORATION & RESULTS
Summary
The Company completed a significant amount of exploration and resource definition drilling at Mandilla during the financial year,
with more than 32 kilometres of drilling completed. This included 7,253 metres of DD, 22,722 metres of RC drilling and 2,335 metres
of AC drilling. The drill programs focused on the Theia, Iris, Eos and Hestia deposits.
During the financial year, the Company reported assay results for a total of 49,582 metres of drilling at Mandilla, which included:
6,170 metres of DD;
27,543 metres of RC drilling; and
15,869 metres of AC drilling.
The relevant ASX announcements relating to Mandilla exploration results were issued on 5 July 2022, 13 July 2022, 10 August 2022,
23 August 2022, 21 September 2022, 13 October 2022, 3 November 2022, 30 November 2022, 15 March 2023, 12 April 2023, 24 April
2023, 16 May 2023 and 14 June 2023. These ASX announcements can be accessed via the ASX website (www.asx.com.au) or via the
Company’s website (www.astralresources.com.au).
The significant investment in exploration and resource definition drilling at Mandilla continues to highlight the confidence the
Company has in the development potential of Mandilla.
Theia Deposit
During the financial year, the Company reported assay results for a total of 15,423 metres of drilling at Theia, which included:
5,667 metres of DD; and
9,757 metres of RC drilling.
Theia Diamond Drilling
Best DD intercepts reported during the financial year at the Theia Deposit included:
Hole MDRCD660 intersected significant gold mineralisation with over 250-gram metres of gold recorded across several
intersections. Best assay results included:
o
o
o
o
o
o
38 metres at 0.62g/t Au from 73 metres;
6 metres at 3.18g/t Au from 156 metres;
38.6 metres at 2.10g/t Au from 189 metres including 0.4 metres at 71.70g/t Au from 190.2 metres, 0.5 metres at
30.33g/t Au from 222.8 metres and 0.5 metres at 46.57g/t Au from 227.1 metres;
11.4 metres at 0.78g/t Au from 245 metres;
25.3 metres at 1.12g/t Au from 287 metres including 1 metre at 19.69g/t Au from 299 metres; and
44.3 metres at 1.89g/t Au from 392 metres including 0.5 metres at 133.25g/t Au from 420.85 metres.
Hole MDRCD675 intersected significant gold mineralisation with 187-gram metres of gold recorded across several intersections.
Best assay results included:
o
o
o
13 metres at 2.95g/t Au from 201 metres;
23.8 metres at 2.41g/t Au from 257.3 metres including 0.3 metres at 155.35g/t Au from 257.3 metres; and
29 metres at 2.61g/t Au from 296.6 metres including 0.3 metres at 178.4g/t Au from 296.6 metres and 1.0 metre at
12.92g/t Au from 320.4 metres.
Hole MDRCD664 intersected significant gold mineralisation with 77-gram metres of gold recorded across several intersections.
Best assay results included:
o
o
o
1 metre at 11.86 g/t Au from 153.15 metres;
52 metres at 0.75g/t Au from 323 metres; and
9.6 metres at 2.33g/t Au from 390.2 metres including 0.5 metres at 33.5g/t Au from 395.5 metres.
Hole MDRCD734 intersected significant gold mineralisation with 201-gram metres of gold recorded across several intersections.
Best assay results included:
o
o
o
o
14 metres at 2.65g/t Au from 215 metres including 0.3 metres at 100.9g/t Au from 223 metres and 0.35 metres at
11g/t Au from 225.35 metres;
21 metres at 1.37g/t Au from 275 metres including 0.7 metres at 17.97g/t Au from 278.5 metres and 0.3 metres at
17.02g/t Au from 283 metres;
11.7 metres at 1.02g/t Au from 315 metres; and
24 metres at 2.60g/t Au from 339 metres including 0.4 metres at 125.15g/t Au from 358.2 metres.
Astral Resources NL Annual Report 30 June 2023
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Hole MDRCD735 intersected significant gold mineralisation with 225-gram metres of gold recorded across several intersections.
Best assay results included:
o
o
o
o
o
12 metres at 1.84g/t Au from 193 metres including 1.05 metres at 19.04g/t Au from 212.9 metres;
8.9 metres at 6.27g/t Au from 212.45 metres including 0.3 metres at 176.1g/t Au from 212.9 metres;
57.6 metres at 0.70g/t Au from 228.9 metres including 0.55 metres at 19.7g/t Au from 277.85 metres;
20.6 metres at 0.93g/t Au from 337.9 metres including 0.5 metres at 26.21g/t Au from 349 metres; and
57 metres at 1.36g/t Au from 367 metres including 0.35 metres at 136.0g/t Au from 418.8 metres.
41.6 metres at 1.53g/t Au from 52.2 metres, including 0.8 metres at 11.75g/t Au from 59.2 metres and 0.3 metres at 56.72g/t
Au from 69.1 metres in MDRCD651.
26.0 metres at 1.83g/t Au from 233.0 metres, including 0.3 metres at 94.55g/t Au from 239.1 metres in MDRCD651.
19.6 metres at 1.08g/t Au from 216.4 metres, including 0.3 metres at 10.75g/t Au from 224.7 metres and 0.3 metres at 13.15g/t
Au from 234.0 metres in MDRCD642.
19 metres at 1.54g/t Au from 246.5 metres, including 0.35 metres at 15.76g/t Au from 222.55 metres and 0.3 metres at
67.38g/t Au from 251.3 metres in MDRCD483.
16.01 metres at 2.12g/t Au from 157.29 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 in
MDRCD644.
10.0 metres at 2.56g/t Au from 115.0 metres, including 0.8 metres at 22.57/t Au from 119.9 metres in MDRCD649.
4 metres at 3.33g/t Au from 246 metres in MDRCD681.
2 metres at 16.38g/t Au from 86 metres (in a previously reported RC pre-collar) and 7 metres at 1.85g/t Au from 94 metres in
MDRCD661.
Theia RC Drilling
Best RC drill intercepts reported during the financial year at the Theia Deposit included:
61 metres at 1.54g/t Au from 79 metres including 2 metres at 13.22g/t Au from 107 metres and 21 metres at 0.75g/t Au from
51 metres in MDRC730.
18 metres at 1.86g/t Au from 100 metres and 3 metres at 7.53g/t Au from 149 metres including 1 metre at 21.93g/t Au from
150 metres in MDRC755.
27 metres at 2.00g/t Au from 45 metres MDRC639.
12 metres at 2.29g/t Au from 20 metres and 20 metres at 0.86g/t Au from 114 metres in MDRC757.
8 metres at 1.78g/t Au from 24 metres in MDRC752.
7 metres at 2.84g/t Au from 17 metres including 1 metre at 15.63g/t Au from 23 metres and 3 metres at 2.94g/t Au from 88
metres and 3 metres at 1.75g/t Au from 138 metres in MDRC725.
4 metres at 24.57g/t Au from 126 metres and 21 metres at 0.76g/t Au from 184 metres in MDRC640.
4 metres at 4.26g/t Au from 68 metres including 1 metre at 15.55g/t Au from 68 metres in MDRC724.
2 metres at 4.85g/t Au from 84 metres in MDRC720.
2 metres at 6.99g/t Au from 48 metres including 1 metre at 11.23g/t Au from 48 metres in MDRC762.
2 metres at 3.53g/t Au from 93 metres and 22 metres at 0.73/t Au from 102 metres in MDRC764.
2 metres at 5.62g/t Au from 19 metres including 1 metre at 10.06g/t Au from 19 metres in MDRC769.
1 metre at 10.17g/t Au from 100 metres in MDRC744.
The July 2023 MRE, as discussed above, included the results of all of the reported assay results.
Hestia Deposit
During the financial year, the Company reported assay results for a total of 14,697 metres of drilling at Hestia, which included:
502 metres of DD; and
14,195 metres of RC drilling.
Hestia Diamond Drilling
Best diamond drill intercepts reported during the financial year at the Hestia Deposit included:
13 metres at 2.13g/t Au from 161 metres including 1.1 metres at 16.96g/t Au from 166.85 metres in MDRCD668.
20.70 metres at 1.13g/t Au from 80.3 metres, including 0.7 metres at 21.91g/t Au from 81.7 metres and, further down-hole,
13.2 metres at 0.81g/t Au from 111.0 metres in MDRCD653.
12.85 metres at 1.24g/t Au from 87.0 metres, including 0.3 metres at 28.8g/t Au from 90.3 metres and 0.3 metres at 10.93g/t
Au from 99.55 metres and, further down-hole, 11.35 metres at 1.42g/t Au from 118.90 metres in MDRCD654.
Astral Resources NL Annual Report 30 June 2023
17
Hestia RC Drilling
Best RC drill intercepts reported during the financial year at the Hestia Deposit included:
11 metres at 2.00g/t Au from 90 metres in MDRC606.
10 metres at 6.35g/t Au from 133 metres in MDRC698.
9 metres at 3.21g/t Au from 192 metres in MDRC688.
9 metres at 2.11g/t Au from 44 metres in MDRC689.
8 metres at 3.61g/t Au from 95 metres and 5 metres at 1.97g/t Au from 62 metres in MDRC690.
6 metres at 7.07g/t Au from 107 metres in MDRC616.
6 metres at 6.07g/t Au from 85 metres and 6 metres at 1.85g/t Au from 103 metres in MDRC694.
6 metres at 3.02g/t Au from 97 metres in MDRC672.
5 metres at 2.31g/t Au from 117 metres in MDRC713.
4 metres at 6.00g/t Au from 110 metres in MDRC708.
4 metres at 2.64g/t Au from 129 metres in MDRC687.
3 metres at 5.20g/t Au from 176 metres and 10 metres at 0.61g/t Au from 155 metres in MDRC676.
3 metres at 2.48g/t Au from 91 metres in MDRC686.
3 metres at 2.20g/t Au from 115 metres in MDRC702.
2 metres at 5.47g/t Au from 52 metres in MDRC693.
2 metres at 4.56g/t Au from 162 metres in MDRC714.
1 metre at 26.15g/t Au from 13 metres and 12 metres at 1.07g/t Au from 52 metres in MDRC587.
1 metre at 7.14g/t Au from 123 metres in MDRC680.
1 metre at 6.41g/t Au from 73 metres in MDRC679.
The July 2023 MRE as discussed above, included the results of all of the reported assay results.
Eos Deposit
During the financial year, the Company reported assay results for a total of 17,815 metres of drilling at Eos, which included:
1,946 metres of RC drilling; and
15,869 metres of AC drilling.
Eos RC Drilling
Best RC drill intercepts reported during the financial year at the Eos Deposit included:
2 metres at 4.65g/t Au from 42 metres and 6 metres at 0.90g/t Au from 130 metres in MDRC778.
34 metres at 0.90g/t Au from 82 metres in MDRC779.
8 metres at 0.80g/t Au from 86 metres in MDRC780.
Eos AC Drilling
Best AC drill intercepts reported during the financial year at the Eos Deposit included:
1 metre at 17.20g/t Au from 52 metres in MDAC513.
2 metres at 13.38g/t Au from 51 metres in MDAC501.
1 metre at 12.17g/t Au from 51 metres in MDAC551.
1 metre at 11.93g/t Au from 49 metres MDAC444.
3 metres at 11.85g/t Au from 52 metres in MDAC540.
1 metre at 8.69g/t Au from 51 metres in MDAC587.
2 metres at 8.09g/t Au from 48 metres in MDAC429.
2 metres at 7.11g/t Au from 51 metres in MDAC443.
3 metres at 6.79g/t Au from 52 metres in MDAC457.
4 metres at 6.31g/t Au from 54 metres MDAC442.
2 metres at 6.05g/t Au from 51 metres in MDAC483.
1 metre at 5.58g/t Au from 47 metres in MDAC550.
The July 2023 MRE as discussed above, included the results of all of the reported assay results for the Eos Deposit.
Astral Resources NL Annual Report 30 June 2023
18
Iris Deposit
During the financial year, the Company reported assay results for a total of 1,708 metres of RC drilling at Iris.
From the limited drilling at the Iris Deposit during the financial year the best reported result was 20 metres at 1.42g/t Au from 174
metres in MDRC624, a RC drill hole.
The July 2023 MRE, as discussed above, included the results of all of the reported assay results at the Iris Deposit, noting that the July
2023 MRE remained largely unchanged from the previous two versions.
Current and Forward Plan
Mandilla Geological Structural Review
Subsequent to the end of the financial year, the Company completed a diamond core re-logging exercise. A structural review is
currently in progress and is likely to be completed in late September. The structural review will evaluate the information derived with
a view to improve future targeting of gold mineralisation at both deposit and regional scale. The structural review will likely lead to
additional diamond drill targets at depth and potentially advance the understanding of the high-grade trends intersected at depth
during the most recent drilling program. Following completion of the structural review, the potential to test for faulted offset gold
mineralisation at depth will be evaluated.
RC Drilling
A 4,000 metre RC drill program commenced at Theia during August 2023 and is ongoing. The first priority of the program is to provide
the necessary drill density to increase the Mineral Resource confidence to the Indicated category in the southern section of the Theia
pit. Several pre-collars at Theia will also be completed.
The RC rig is also expected to complete additional in-fill holes at the Eos Deposit, following up on fresh rock mineralisation intercepted
within the granitoid earlier in the year.
Diamond Drilling
A DD rig was mobilised to Mandilla mid-September. The plan for this phase of DD is to continue testing the central portion of the
Theia deposit to extend the known extent of mineralisation both on the flanks and at depth. However, considering the success of the
recent drill program at Kamperman (discussed below), the exploration effort may be directed to Feysville prior to the full program
being completed.
AC Drilling
An AC drill rig mobilised to Mandilla in September 2023 to complete the regional program to the south-east of Eos.
Astral Resources NL Annual Report 30 June 2023
19
FEYSVILLE GOLD PROJECT
The Feysville Gold Project is located within the north-north-west trending Norseman-Wiluna Greenstone Belt, within the Kambalda
Domain of the Archean Yilgarn Craton.
Feysville hosts a MRE of 3Mt at 1.3g/t Au for 116koz of contained gold1 at the Think Big deposit, providing a foundation for the
Project to potentially become a source of satellite ore feed to a future operation based on the Company’s flagship Mandilla Gold
Project.
Significant gold and nickel mineralisation occurs throughout the belt, including world-class deposits such as the Golden Mile Super
Pit in Kalgoorlie owned by Norther Star Limited and the St Ives Gold Mine south of Kambalda owned by Gold Fields.
Locally, Feysville has been interpreted to contain upthrust ultramafics, emplaced within a sequence of volcanic sediments (the Black
Flag sediment group), granitic intrusions, mafic basalts, gabbro and andesite.
A map identifying tenements and deposits/prospects on local area geology is set out in Figure 11.
Image 3 – RC drilling at Ethereal Prospect (January 2023)
1 - Feysville JORC 2012 Mineral Resource Estimate: 0.6Mt at 1.1g/t Au for 20.2koz Indicated and 2.3Mt at 1.3g/t Au for 95.6koz
Inferred.
Astral Resources NL Annual Report 30 June 2023
20
Figure 11 – Feysville Gold Project showing tenements and deposits prospects on local area geology.
Astral Resources NL Annual Report 30 June 2023
21
Summary
This year, for the first time in over three years, drilling was conducted at Feysville, with a total of 3,834 metres of drilling completed
during the financial year. This included 2,446 metres of RC drilling and 1,388 metres of DD. The drill programs focused on the Think
Big Deposit and the Ethereal, Hyperno, Rogan Josh, Kamperman, Michelangelo and Rosina Prospects. An additional 3,202 metre RC
drilling program was completed during August 2023 (subsequent to the end of the financial year).
During the financial year, the Company reported assay results for all 3,834 metres of drilling at Feysville.
The relevant ASX announcements relating to Feysville exploration results were announced on 15 March 2023 and 12 April 2023.
These ASX announcements can be accessed via the ASX website (www.asx.com.au) or via the Company’s website
(www.astralresources.com.au).
Kamperman Prospect
During the financial year, the Company reported assay results for a total of 150 metres of drilling at Kamperman, being a single
diamond drill hole. The best reported result was in DD hole FRCD208, with an intersection of 10 metres at 4.57g/t Au from 148
metres.
Subsequent to the end of the financial year, on 5 September 2023 and 18 September 2023, the Company released assay results from
RC drilling conducted at the Kamperman Prospect. Best drill intercepts reported included the following:
4 metres at 94.84g/t Au from 77 metres, including 2 metres at 187.7g/t Au from 77 metres, 5 metres at 8.29g/t Au from 53
metres, including 1 metre at 38.72g/t Au from 59 metres and 18 metres at 0.90g/t Au from 15 metres in hole FRC243.
21 metres at 4.16g/t Au from 31 metres including 2 metres at 12.73g/t Au from 47 metres in hole FRC241;
35 metres at 2.19g/t Au from 81 metres, including a higher-grade core of 15 metres at 3.91g/t Au from 99 metres in hole
FRC240; and
5 metres at 5.89g/t Au from 112 metres including 1 metre at 20.62g/t Au from 114 metres in FRC238.
Think Big Deposit
During the financial year, the Company reported assay results for a total of 1,229 metres of drilling at Think Big, including 841 metres
of RC drilling and 256 metres of DD.
Best drill intercepts reported during the financial year at the Think Big Deposit included the following:
7 metres at 1.33g/t Au from 93 metres in FRC234;
7 metres at 0.96g/t Au from 50 metres in FRC233;
8.4 metres at 1.14g/t Au from 61.1 metres in FRCD206; and
1 metre at 5.70g/t Au from 215 metres and 2 metres at 2.53g/t Au from 248.5 metres in FRCD207.
Ethereal Prospect
During the financial year, the Company reported assay results for a total of 706 metres of drilling at Ethereal, including 380 metres
of RC drilling and 326 metres of DD.
Best drill intercepts reported during the financial year at the Ethereal Prospect included the following:
1 metre at 5.75g/t Au from 24 metres, 4.6 metres at 3.25g/t Au from 41.4 metres, 8.25 metres at 3.43g/t Au from 58.6 metres,
and 4.2 metres at 1.69g/t Au from 128 metres in FRCD202;
11 metres at 1.81g/t Au from 49 metres to bottom-of-hole in FRC213; and
12 metres at 1.37g/t Au from 43 metres in FRC212.
Hyperno Prospect
During the financial year, the Company reported assay results for a total of 450 metres of drilling at Hyperno, including 310 metres
of RC drilling and 140 metres of DD.
Best drill intercepts reported during the financial year at the Hyperno Prospect included the following:
2 metres at 16.09g/t Au from 45 metres in RC hole FRC215; and
2.53 metres at 2.43g/t Au from 102.35 metres in FRCD204.
Astral Resources NL Annual Report 30 June 2023
22
Rogan Josh Prospect
During the financial year, the Company reported assay results for a total of 281 metres of drilling at Rogan Josh, including 105 metres
of RC drilling and 176 metres of DD.
The best reported result was in RC hole FRC218, with an intersection of 17 metres at 2.98g/t Au from 39 metres.
Rosina Prospect
During the financial year, the Company reported assay results for a total of 805 metres of drilling at Rosina, including 671 metres of
RC drilling and 134 metres of DD.
Best drill intercepts reported during the financial year at the Rosina Prospect included the following:
3 metres at 3.90g/t Au from 24 metres in FRC222;
2 metres at 2.38g/t Au from 48 metres in FRC225;
2 metres at 1.47g/t Au from 111 metres in FRC224A; and
2 metres at 1.09g/t Au from 92 metres in FRC226.
Michelangelo Prospect
During the financial year, the Company reported assay results for a total of 189 metres of drilling at Michelangelo, including 109
metres of RC drilling and 80 metres of diamond drilling.
The best reported result was in RC hole FRC230, with an intersection of 2 metres at 1.23g/t Au from 16 metres.
Current and Forward Plan
Drilling
RC drilling resumed at Feysville during August 2023. A modest drill program of 23 holes for 3,202 metres was completed. Eight holes
were drilled at Kamperman, 11 holes at Ethereal and four holes at Hyperno. Assay results from this RC program were released
subsequent to the end of the year on 5 September 2023 and 18 September 2023.
A DD rig was mobilised to Mandilla mid-September. The plan for this phase of DD is to continue testing the central portion of the
Theia deposit to extend the known extent of mineralisation both on the flanks and at depth. However, considering the success of the
recent drill program at Kamperman (discussed below), the exploration effort may be directed to Feysville prior to the full program
being completed.
Koongie Park Project
Western Australia
The Koongie Park Project (Koongie Park) is situated in north-eastern Western Australia in the highly mineralised Halls Creek region.
Koongie Park comprises 16 tenements (two mining leases, nine exploration licences and five prospecting licences) representing an
area of over 500km2.
Royalty
On 8 February 2021, Astral entered into an Earn-In and Joint Venture Agreement (JVA) with AuKing Mining Limited (ASX: AKN)
concerning the Koongie Park Joint Venture (KPJV). Effective from 30 June 2023, Astral’s residual participating interest in the KPJV
was converted to a 1% Net Smelter Return royalty.
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 platinum group elements. These rights do not apply to the mining leases on which the Onedin and Sandiego deposits are
situated.
Carnilya Hill Gold Project
Western Australia
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.
Astral Resources NL Annual Report 30 June 2023
23
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, now a subsidiary of Wyloo Consolidated
Investments Pty Ltd.
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.
Business Strategy and Prospects
The Company currently has the following business strategies and prospects over the medium to long term:
continue to undertake exploration and evaluation programs at the Mandilla and Feysville Gold Projects;
progress the Mandilla Scoping Study to a Pre-Feasibility Study (PFS) level; and
continue to review opportunities which may enhance shareholder value.
The successful completion of these activities will assist the Company to achieve its strategic objective of making the transition from
explorer to producer.
The Company and its controlled entities are exploration companies operating in Australia.
Material Business Risks
The Company considers the following to be the key material business risks:
Risk of exploration failure
Exploration activities are inherently risky, and the Board is unable to provide certainty that any or all of these objectives, as outlined
as business strategies above, will be able to be achieved. In the opinion of the Directors, any further disclosure of information
regarding likely developments in the operations of the Group and the expected results of these operations in subsequent financial
years may prejudice the interests of the Company and accordingly, further information has not been disclosed.
Additional requirement for capital
The Company’s current capital is sufficient, at the issue date of this report, to meet its current planned exploration activities. Activities
beyond the scope of current plans will require additional funding to be obtained. Funding via additional equity will dilute
shareholdings and, if debt financing is a viable option, it would likely be subject to restrictions. The Company may need to reduce the
scope of its future exploration programmes to ensure sufficient capital is maintained. There is no guarantee that suitable, additional
funding will be able to be secured by the Company.
Environmental
With the Group’s tenure located within Western Australia, the Company is subject to state and federal laws and regulations
concerning the environment in that territory. Mechanised exploration will impact the local environment along with any advanced
development and production activities. In undertaking exploration activities, the Company intends to comply with all environmental
laws.
Inherent risks when completing exploration activities include, but are not limited to, land disturbance and the disposal of waste
products. An incident involving incorrect disposal of waste products could result in delays to exploration, additional costs to
remediate the location and any legislative penalties.
The Company has procedures implemented to minimise the occurrence of environmental impacts and any subsequent penalties;
however, the nature of the activity does involve environmental risks.
Heritage
The Company is subject to state and federal laws and regulations concerning Native Title and Heritage rights and interests. The
Company is required to ensure that tenure has been adequately surveyed and considered before commencing any activity that would
disturb the natural environment and its surroundings.
The Company complies with required legislation regarding Native Title and Heritage requirements and, where appropriate, engages
a third party to ensure that all requirements are met.
While all care is taken to ensure rights and interests are maintained, there is a level of risk inherent in the exploration activity that is
unable to be fully mitigated.
Astral Resources NL Annual Report 30 June 2023
24
CORPORATE
Capital Raisings
September/October 2022
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 the record date at an issue price of $0.065 per New Share together with one (1) free-attaching new
option exercisable at $0.14, with an expiry date of 24 October 2025 (Option) for every two (2) new shares issued, to raise
approximately $3.9 million (before costs) (Entitlement Offer).
The Entitlement Offer closed on 17 October 2022, with the Shortfall Offer oversubscribed. To accommodate the excess demand, the
Company announced it would undertake an additional offer to raise an additional $0.6 million on the same terms as the Entitlement
Offer (Additional Offer).
Following completion of the Additional Offer, the total amount raised was $4.5 million (before costs). On 24 October 2022, the
Company issued a total of 69,230,740 new Shares and 34,615,385 Options. The Options are quoted under the ASX code AARO.
April 2023
On 28 April 2023, the Company announced that it had received commitments for a placement of 47,222,222 shares to raise
approximately $3,400,000 at $0.072 per share. A total of 46,111,113 shares were issued to institutional and sophisticated investors
on 8 May 2023. A total of 1,111,109 shares to be issued as part of this placement to Marc Ducler (Managing Director), Justin Osborne
(Non-Executive Director) and David Varcoe (Non-Executive Director) (and/or their nominee(s)), were subject to shareholder approval
(Director Shares). On 30 June 2023, resolutions approving the issue of the Director Shares were passed by shareholders at a general
meeting and the Director Shares were issued on 12 July 2023, subsequent to the end of the financial year.
July-September 2023
On 31 July 2023 (subsequent to the end of the financial year), the Company announced that it has secured commitments to raise
$3m via a single-tranche share placement (July Placement) comprising the issue of approximately 46.2 million shares at an issue price
of A$0.065 per share to sophisticated and professional investors.
In addition to the July Placement, the Company also undertook a non-underwritten Share Purchase Plan (SPP) to raise up to $2
million. The SPP opened on 11 August 2023 to all eligible shareholders at the same issue price as the July Placement. The SPP closed
on 8 September 2023, raising a total of approximately $1.6 million. Pursuant to the SPP, 23,953,814 fully paid ordinary shares were
issued on 15 September 2023.
Issued Capital
In addition to the capital raising activities outlined above, the following additional changes to issued capital occurred during and
subsequent to the end of the financial year.
On 16 December 2022, the Company issued 7,170,854 fully paid ordinary shares following the vesting and exercise of 7,170,854
2020A and 2020B performance rights.
There were no other changes to issued capital during the reporting period.
Unissued Capital
The following changes to unissued capital occurred during the financial year.
Unquoted options
The following unlisted options expired unexercised during the financial year:
2,000,000 options exercisable at $0.213 expired 7 October 2022;
3,000,000 options exercisable at $0.135 expired 27 November 2022;
1,250,000 options exercisable at $0.15 expired 31 December 2022; and
6,000,000 options exercisable at $0.34, expired 31 December 2022.
Astral Resources NL Annual Report 30 June 2023
25
Listed options
On 24 October 2022, pursuant to the Entitlement Offer and the Additional Offer, the Company issued a total of 34,615,385 listed
options, exercisable at $0.14, expiring 24 October 2025. The Options are quoted under the ASX code AARO. Pursuant to the terms of
an Underwriting Agreement, the Lead Manager for the Entitlement Offer was issued 9,000,000 AARO listed options, exercisable at
$0.14, expiring 24 October 2025.
Performance rights
The following changes to performance rights occurred during the financial year.
On 16 December 2022, following the announcement of a >1Moz JORC 2012 Mineral Resource, 1,830,780 2020A and 5,340,074
2020B performance rights vested and were exercised resulting in the Company issuing 7,170,854 fully paid ordinary shares.
On 12 January 2023, the Company issued 2,870,250 unquoted 2023A Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
On 12 January 2023, the Company issued 3,771,250 unquoted 2023B Performance Rights to KMP, pursuant to the Company’s
Employee Incentive Plan.
On 12 January 2023, the Company issued 1,044,750 unquoted 2023C Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
On 12 January 2023, the Company issued 1,881,250 unquoted 2023D Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
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.
Project
Mandilla2
Feysville 3
Total
Cut-off grades
Tonnes
(Mt)
21.0
2.3
23.3
Indicated
Grade
(Au g/t)
1.1
1.3
1.1
Metal
(koz Au)
694
96
790
Tonnes
(Mt)
17.0
0.6
17.6
Inferred
Grade
(Au g/t)
1.1
1.1
1.1
Metal
(koz Au)
571
20
591
Tonnes
(Mt)
37.0
2.9
39.9
Total
Grade
(Au g/t)
1.1
1.3
1.1
Metal
(koz Au)
1,265
116
1,381
The Mineral Resources for Mandilla are reported at a cut-off grade of 0.39 g/t Au and Feysville is reported at a cut-off grade of 0.50
g/t Au.
2 - Refer to ASX Announcement dated 20 July 2023 – Mandilla Gold Resource Surpasses 1.25Moz – MRE Upgrade.
3 - Refer to ASX Announcement dated 8 April 2019 – Maiden Mineral Resource at Feysville & Met Testwork Results
Astral Resources NL Annual Report 30 June 2023
26
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)
Feysville
(Western Australia)
M15/96
M15/633
E15/1404
P26/3943
P26/3948-3951
P26/4351-4353
P26/4538-4541
P26/4632-4634
P26/4051-4052
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
100%
Granted
Feysville Gold Pty Ltd
P26/4390
100%
Granted
Astral Resources NL
M26/846
-
Pending
Feysville Gold Pty Ltd
Carnilya Hill
(Western Australia)
M26/47 - 49
M26/453
100% gold rights only Granted
Mincor Resources NL
Koongie Park
(Western Australia)
E80/4389,4766, 4957, 4960
E80/5076, 5087
E80/5127
E80/5263
100% - Gold and
precious metals rights
only.
Granted
Koongie Park Pty Ltd
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 30 June 2023
27
Directors’ Report
Your Directors’ present the following report on Astral Resources NL and its controlled entities (referred to as Astral, Company or
Group) for the year ended 30 June 2023.
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
Role
Non-Executive Chair
Managing 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
Principal Activities
During the financial year, the principal activities of the Group consisted of exploration at the Company’s 100% owned Mandilla and
Feysville Gold Projects 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 operations attributable to
owners of $3,713,941 for the financial year ended 30 June 2023 (30 June 2022: loss of $2,353,412).
Significant changes in the state of affairs
During the year, a total of 122,512,707 fully paid ordinary shares were issued, comprising:
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 the record date at an issue price of $0.065 per New Share together with one (1) free-
attaching new option exercisable at $0.14, with an expiry date of 24 October 2025 (Option) for every two (2) new shares issued,
to raise approximately $3.9 million (before costs) (Entitlement Offer). The Entitlement Offer closed on 17 October 2022, with
the Shortfall Offer oversubscribed. To accommodate the excess demand, the Company announced it would undertake an
additional offer to raise an additional $0.6 million on the same terms as the Entitlement Offer (Additional Offer).
Following completion of the Additional Offer, the total amount raised was $4.5 million (before costs). On 24 October 2022, the
Company issued a total of 69,230,740 new Shares and 34,615,385 Options. The Options are quoted under the ASX code AARO.
Under the terms of the Underwriting Agreement, the Lead Manager for the Entitlement Offer was issued 9,000,000 AARO listed
options.
On 16 December 2022, following the announcement of a >1Moz JORC 2012 Mineral Resource, 1,830,780 2020A and 5,340,074
2020B performance rights vested and were exercised resulting in the Company issuing 7,170,854 fully paid ordinary shares.
On 28 April 2023, the Company announced that it had received commitments for a placement of 47,222,222 shares to raise
approximately $3,400,000 at $0.072 per share. A total of 46,111,113 shares were issued to institutional and sophisticated
investors on 8 May 2023. A total of 1,111,109 shares to be issued as part of this placement to Marc Ducler (Managing Director),
Justin Osborne (Non-Executive Director) and David Varcoe (Non-Executive Director) (and/or their nominee(s)), were subject to
shareholder approval (Director Shares). On 30 June 2023, resolutions approving the issue of the Director Shares were passed
by shareholders at a general meeting and the Director Shares were issued on 12 July 2023, subsequent to the end of the financial
year.
Other than stated above, there were no significant changes in the state of affairs of the Group during the year.
Astral Resources NL Annual Report 30 June 2023
28
Matters subsequent to the end of the period
The following 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:
On 7 July 2023, the Company announced that, effective from 30 June 2023, its participating interest in the Koongie Park
Project has converted to a 1% Net Smelter Return royalty.
On 20 July 2023, the Company announced an updated JORC 2012 Mineral Resource Estimate for Mandilla of 37 million
tonnes at 1.1g/t Au for 1.27 million ounces of contained gold (July 2023 MRE), encompassing the cornerstone Theia deposit
and the Iris, Eos and Hestia deposits.
On 31 July 2023, the Company announced that it had secured firm commitments to raise $3 million via a single-tranche
placement at an issue price of $0.065 per share to sophisticated and professional investors. 46,153,846 fully paid ordinary
shares were issued on 7 August 2023.
On 31 July 2023, the Company announced a Share Purchase Plan (SPP) to raise up to $2 million. The SPP gave eligible
shareholders the opportunity to apply for up to $30,000 worth of new shares at an issue price of $0.065. The SPP Offer
opened on 11 August 2023 and closed on 8 September 2023, raising a total of approximately $1.6 million. Pursuant to the
SPP, 23,953,814 fully paid ordinary shares were issued on 15 September 2023.
On 21 September 2023, the Company announced the results of a positive Scoping Study for Mandilla. The Study was based
on a standalone development, including a 2.5Mtpa CIL processing plant and associated infrastructure, identified as the
optimum commercialisation strategy for Mandilla. Highlights of the Scoping Study are discussed in the Review of Operations
section of this Report.
The Company has released the following ASX Announcements since the end of the financial year.
Date
3-Jul-23
7-Jul-23
7-Jul-23
11-Jul-23
12-Jul-23
20-Jul-23
27-Jul-23
31-Jul-23
31-Jul-23
30-Aug-23
5-Sep-23
18-Sep-23
21-Sep-23
Details
Outstanding Diamond Hole Hits Multiple Mineralised Zones
Koongie Park Joint Venture Interest Converted to 1% Royalty
Trading Halt
Suspension from Quotation
Reinstatement to Quotation
Mandilla Gold Resource Surpasses 1.25Moz – MRE Upgrade
Trading Halt
$3m Placement to Advance Kalgoorlie Gold Projects
Quarterly Activities & Cashflow Report
High-Grade Air-Core Results of up to 28.0g/t Au at Eos
Bonanza Gold Intersection of 4m at 94.84g/t at Feysville
More High-Grade Gold Intercepts at Kamperman (Feysville)
Mandilla Gold Project – Positive Scoping Study
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 the Mandilla and Feysville Gold Projects 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 30 June 2023
29
Information on directors
Leigh Warnick SC
Non-Executive Chair, Independent
Qualifications
B.A, LL.B, LL.M.
Appointed
Experience
23 December 2019
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 in excess
of 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
Qualifications
Appointed
Experience
Managing Director
BSC (Metallurgy) WASM
23 December 2019
Mr Ducler has over 22 years’ experience in the mining industry. For the past 19 years, Mr Ducler
has been in senior operational management roles with Gold Fields, BHP, Fortescue Metals,
Mineral Resources and Roy Hill. Mr Ducler’s most recent role was as Managing Director of Egan
Street Resources Limited (ASX: EGA) (a gold exploration and near-term developer), until its
takeover by Silver Lake Resources Limited (ASX: SLR).
Interest in Shares and Options
Shares – 8,886,751
Performance Rights (Incentive) – 3,437,500
Listed Options exercisable at $0.14 expiring 24-Oct-25 – 244,684
Current directorships
Former directorships held in past
three years
Nil.
Nil.
Astral Resources NL Annual Report 30 June 2023
30
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), Non-Executive
Director of Hamelin Gold Limited (ASX: HMG) and Non-Executive Director of IGO Limited (ASX:
IGO).
Interest in Shares and Options
Shares – 1,194,657
Unlisted Options - $0.119 expiring 19-Nov-23 – 3,000,000
Listed Options exercisable at $0.14 expiring 24-Oct-25 – 37,500
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)
IGO Ltd (ASX: IGO) – Non-Executive Director (appointed 10-Oct-22)
Former directorships held in past
three years
Gold Road Resources Limited (ASX: GOR) (resigned 3-Jun-21)
Peter Stern
Qualifications
Appointed
Experience
Non-Executive Director, Independent
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 – 22,513,944
Listed Options exercisable at $0.14 expiring 24-Oct-25 – 153,846
Current directorships
Troy Resources Limited (ASX: TRY) – Non-Executive Chair (appointed 16-Jun-17)
Former directorships held in past
three years
Nil.
Astral Resources NL Annual Report 30 June 2023
31
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 – 1,231,623
Listed Options exercisable at $0.14 expiring 24-Oct-25 – 250,000
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
7
7
7
7
7
7
7
7
Director
Leigh Warnick
Marc Ducler
Justin Osborne
Peter Stern
David Varcoe
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).
Astral Resources NL Annual Report 30 June 2023
32
Financial position
The net assets of the consolidated Group increased to $25,504,693 at 30 June 2023 (30 June 2022: $20,818,809). The Group’s working
capital, being current assets less current liabilities, was $221,449 at 30 June 2023 (30 June 2022: $1,453,754).
Unissued shares under option
Unissued ordinary shares of Astral Resources NL under option at the date of this report are as follows:
(a) Listed options
Tranche
Grant date
AARO
24-Oct-22
Expiry date
24-Oct-25
Total listed options on issue at the date of this report
(b) Unlisted options
Tranche
Grant date
L
19-Nov-21
Expiry date
19-Nov-23
Total unlisted options on issue at the date of this report
Exercise
price
$0.140
Exercise
price
$0.119
Number
43,615,317
43,615,317
Number
3,000,000
3,000,000
Securities granted during the year
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
AARO
Listed options
24-Oct-22
43,615,317
$0.140
24-Oct-25
Immediate
Performance rights granted during the year as share based payments are as follows:
Tranche
Class of securities
Grant
date
Number of
securities
Exercise price
Expiry
date
Disposal Restriction
2023A
Performance rights
1-Jan-23
2,870,250
2023B
Performance rights
1-Jan-23
3,771,250
2023C
Performance rights
1-Jan-23
1,044,750
2023D
Performance rights
1-Jan-23
1,881,250
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
31-Dec-26
Non-transferable
31-Dec-26
Non-transferable
31-Dec-26
Non-transferable
31-Dec-26
Non-transferable
Refer to Note 23 for details of share-based payment expenditure.
Astral Resources NL Annual Report 30 June 2023
33
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 are important.
During the year there were no fees paid or payable for non-audit services provided by an auditor of the Group (2022: 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.
Astral Resources NL Annual Report 30 June 2023
34
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.
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
(c) Key management personnel (KMP) covered in this report
Figure 12: Directors (executive and non-executive)
Name
Leigh Warnick
Marc Ducler
Justin Osborne
David Varcoe
Peter Stern
Position
Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Figure 13: Other key management personnel
Name
Jed Whitford
Brendon Morton
Julie Reid
Position
General Manager Projects & Business Development
Chief Financial Officer & Company Secretary
Geology Manager
(d) 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.
The Company has a Remuneration Committee, 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. A human resources consultant was engaged during the financial year to assist with a review of remuneration.
(e) 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 30 June 2023
35
Remuneration Report – Audited (continued)
Variable remuneration – Short-term incentive arrangements
During the year, the Company adopted a Short-Term Incentive (STI) Scheme. The objective of the STI is to link the achievement of
the Group’s short-term performance objectives with the remuneration received by senior management and employees charged with
achieving those measures. STI payments are dependent on the extent to which performance measures, as set by the Board are
achieved and are “at risk”. The measures represent the key drivers for short-term success of the Group and provide a framework for
delivering longer term value.
Key features of the STI Plan (STIP) are provided in the following table.
Plan Feature
STI Objective
Alignment with Shareholder
Interests
STIP Nature
STIP Vesting
STIP Performance Measures
Current Year Award
Details
The STIP motivates and rewards employees for their contribution to the Company’s performance. The
STIP is also designed to retain staff over the vesting period of the award.
The STIP sets safety, exploration, corporate and financial targets to enhance shareholder value.
Any STI award is to be settled in cash, or via equity at the Company’s election.
Awards are determined on an annual basis after the financial year has closed and once the Board has
assessed the performance of the Company and the individual against the defined KPI’s.
The Board has set a scorecard to measure the Company’s and individual’s performance which is broken
down into the core components that the Board believes are key to delivering the Company’s strategic
objectives over the year.
The award opportunity for the financial year ended 30 June 2023 is up to 40% of the Managing Director
and between 10%-30% for other personnel. The STIP opportunity for KMP is comprised of between 40%-
75% for Exploration and Growth KPI’s, with the remainder based on Safety and Corporate KPI’s. Different
KPI targets exist for the Corporate, Exploration and Technical Services employees.
Any payment of short-term incentives is at the Board’s absolute discretion. The Company has not yet determined whether any STI
payments are to be made with respect to the financial year.
Long term incentives
Options
No options were issued to KMP during the year with respect to their role as KMP.
Performance Rights
During the current period, 7,975,000 performance rights were awarded to key management personnel. See Note 23 and the
Remuneration Report for further details of these related party transactions.
During the financial year, the Board determined that the performance conditions attaching to 1,830,780 2020A Performance Rights
and 5,340,074 2020B Performance Rights (together, the Performance Rights) had been met. The Performance Rights were converted
to 7,170,854 fully paid ordinary shares on 16 December 2022, of which 5,735,766 fully paid ordinary shares were issued to KMP.
(f) 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 (2022: nil).
The Group’s summary key performance information, including earnings and movement in shareholder wealth for the five (5) years
to 30 June 2023, is included at Figure 14.
Astral Resources NL Annual Report 30 June 2023
36
Remuneration Report – Audited (continued)
Figure 14: 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 2023
30 June 2022
30 June 2021
30 June 2020
30 June 2019
13,410
173,712
82,159
66,178
(3,713,941)
(2,353,412)
(3,437,159)
(2,710,042)
(3,713,941)
(2,353,412)
(3,437,159)
(2,710,042)
0.070
0.066
(0.57)
(0.57)
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)
(g) Contractual arrangements for executive KMP
The executive remuneration framework is summarised in the table below:
Component
Managing Director
Other Key Management Personnel
Fixed remuneration
$275,000
Range between $235,000 and $260,000
on a full-time basis.
Short term incentive (STI)
Long term incentive (LTI)
Contract duration
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
(h) 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 30 June 2023
37
Remuneration Report – Audited (continued)
(i) 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
Name
Executive Directors
M. Ducler
Other KMP
J. Whitford
B. Morton
J. Reid
Non-Executive Directors
L. Warnick
P. Stern
D. Varcoe
J. Osborne
(from 18-Nov-21)
J. Jones
(to 16-Nov-21)
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Salary1
$
283,113
254,577
126,483
263,736
241,270
230,069
242,319
217,500
70,000
70,000
50,000
50,000
50,000
50,000
45,249
28,182
-
19,026
1,108,433
1,182,318
Post-
employment
benefits
$
Other
$
Total fixed
$
Performance
Rights
$
25,292
23,568
13,116
23,568
25,005
22,932
24,370
21,750
-
-
-
-
-
-
4,751
2,819
-
1,903
92,535
96,539
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
308,405
278,145
139,599
287,304
266,275
253,001
266,689
239,250
70,000
70,000
50,000
50,000
50,000
50,000
50,000
31,000
-
20,929
1,200,968
1,278,857
273,544
127,568
230,278
104,871
229,399
96,423
177,636
75,507
-
-
-
-
-
-
-
-
-
-
910,857
404,369
1 – Includes movement in KMP statutory leave entitlement balances (where applicable).
Options
Total linked to
performance
Total
remuneration
Fixed
remuneration
Remuneration
linked to
performance
$
-
-
-
-
-
-
-
-
-
-
-
-
-
7,624
-
75,164
-
-
-
82,788
$
$
273,544
127,568
230,278
104,871
229,399
96,423
177,636
75,507
-
-
-
-
-
7,624
-
75,164
-
-
910,857
487,157
581,949
405,713
369,877
384,123
495,674
353,736
444,325
317,726
70,000
70,000
50,000
50,000
50,000
57,624
50,000
106,164
-
20,929
2,111,825
1,766,014
%
53%
69%
38%
73%
54%
73%
60%
76%
100%
100%
100%
100%
100%
87%
100%
29%
-
100%
57%
72%
%
47%
31%
62%
27%
46%
27%
40%
24%
0%
0%
0%
0%
0%
13%
0%
71%
-
0%
43%
28%
Astral Resources NL Annual Report 30 June 2023
38
Remuneration Report – Audited (continued)
(j) 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
2023A Performance rights
1-Jan-23
2,392,500
2023B Performance rights
1-Jan-23
3,771,250
2023C Performance rights
1-Jan-23
577,500
2023D Performance rights
1-Jan-23
1,233,750
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
31-Dec-26
Non-
transferable
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
2020A/2020B Performance Rights
On 16 December 2022, following the announcement of a >1Moz JORC 2012 Mineral Resource, 1,830,780 2020A and 5,340,074 2020B
(3,904,986 held by KMP) performance rights vested and were exercised resulting in the Company issuing 7,170,854 fully paid ordinary
shares (5,735,766 issued to KMP).
A valuation of the 2020A and 2020B performance rights was completed with respect to the 30 June 2020 financial year. At the point
in time when the valuation was undertaken, the Company assessed the probability of performance rights vesting as 0% and as such
no share-based payment expense has previously been recognised. In accordance with AASB 2, the total share-based payment
expense relating to these performance rights has been recognised in the current financial year.
The 2020A and 2020B performance rights vested 100%, upon on the later date to occur of:
a)
b)
the Company announcing a JORC compliant Mineral Resource of at least 1,000,000 ounces; and
the date when the holder gave a notice to the Company confirming that the holder would like the Performance Rights to vest.
The 2020A and 2020B performance rights were subject to non-market vesting conditions and were valued based upon the share
price at the deemed grant date. The table below outlines the valuation at grant date as compared to the value of the ordinary shares
issued upon exercise of the performance rights.
Astral Resources NL Annual Report 30 June 2023
39
Remuneration Report – Audited (continued)
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation at
grant date
2020A
2020B
16-Jun-20
23-Jun-20
1,830,780
3,904,986
$0.125
$0.15
Total
5,735,766
1 – Last closing price prior to exercise date (16-Dec-22)
2023A Performance Rights
Share based
payment
expenditure
recognised
$228,848
$585,748
$814,596
Share price
at date
of exercise1
$0.065
$0.065
Market value at
date of exercise
$119,001
$253,824
$372,825
On 12 January 2023, the Company issued 2,870,250 unquoted 2023A Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan. 2,392,500 2023A Performance Rights were issued to KMP.
The 2023A Performance Rights are retention incentives which are not subject to performance conditions. The vesting conditions are
that the 2023A Performance Rights will vest in equal tranches over a 2.5-year period as follows:
20% of the 2023A Performance Rights vest 30 June 2023;
40% of the 2023A Performance Rights vest 30 June 2024; and
40% of the 2023A Performance Rights vest 30 June 2025.
The 2023A Performance Rights are subject to non-market vesting conditions and were valued based upon the share price at the
deemed grant date. The table below outlines the valuation at grant date.
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation per
right at grant
date
2023A
1-Jan-23
2,392,500
$0.072
Number of
rights vested at
reporting date1
478,500
1 – Rights vested at 30 June 2023, but formal Board determination is required, which has not been made at the date of this report.
2023B Performance Rights
On 12 January 2023, the Company issued 3,771,250 unquoted 2023B Performance Rights to KMP, pursuant to the Company’s
Employee Incentive Plan.
The 2023B Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 30% of the 2023B Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 15% of the 2023B Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
o
10% of the 2023B Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
50% of the 2023B Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
ESG: 5% of the 2023B Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023B Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation per
right at grant
date
2023B
1-Jan-23
3,771,250
$0.0303
Number of
rights vested at
reporting date
Nil
Astral Resources NL Annual Report 30 June 2023
40
Remuneration Report – Audited (continued)
2023C Performance Rights
On 12 January 2023, the Company issued 1,044,750 unquoted 2023C Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan. 577,500 2023C Performance Rights were issued to KMP.
The 2023C Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 30% of the 2023C Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 50% of the 2023C Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
o
10% of the 2023C Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
15% of the 2023C Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
ESG: 5% of the 2023C Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023C Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation per
right at grant
date
2023C
1-Jan-23
577,500
$0.0093
Number of
rights vested at
reporting date
Nil
2023D Performance Rights
On 12 January 2023, the Company issued 1,881,250 unquoted 2023D Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan. 1,233,750 2023D Performance Rights were issued to KMP.
The 2023D Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 60% of the 2023D Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 20% of the 2023D Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
o
10% of the 2023D Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
15% of the 2023D Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
ESG: 5% of the 2023D Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023D Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation per
right at grant
date
2023D
1-Jan-23
1,233,750
$0.0093
Number of
rights vested at
reporting date
Nil
Astral Resources NL Annual Report 30 June 2023
41
Remuneration Report – Audited (continued)
Options
The Company did not make any grant of unquoted options to KMP during the year.
No share-based payment expenditure was recognised during the year in relation to any previous grant of options to KMP.
(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.
Figure 15: Listed option holdings
Balance at beginning of
the year
Unvested
Vested
and
exercis-
able
Granted
as
compens-
ation
Vested
Exercised
Number
%
Number
Exercise
price
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Name
M.Ducler
J.Osborne
D.Varcoe
P.Stern
B.Morton
J.Reid
Total
Figure 16: Unlisted option holdings
Balance at beginning of
the year
Unvested
Name
J. Osborne
Total
Vested
and
exercis-
able
3,000,000
3,000,000
Granted
as
compens-
ation
Vested
Exercised
Number
%
Number
Exercise
price
-
-
-
-
-
-
-
-
-
-
Balance at the end of
the year
Net
Change
Other
244,684
37,500
250,000
153,846
12,003
59,511
Vested
and
exercis-
able
244,684
37,500
250,000
153,846
12,003
59,511
757,544
757,544
Unvested
-
-
-
-
-
-
Net
Change
Other
Balance at the end of
the year
Vested
and
exercis-
able
3,000,000
3,000,000
-
-
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.
Astral Resources NL Annual Report 30 June 2023
42
Remuneration Report – Audited (continued)
Figure 17: Shareholdings
Name
Directors
Mr Leigh Warnick
Mr Marc Ducler
Mr Justin Osborne
Mr Peter Stern
Mr David Varcoe
Other key
management
personnel
Mr Jed Whitford
Mr Brendon Morton
Ms Julie Reid
Total
Balance at the
start of the year
Capital Raising
shares
subscribed for1
Performance
Rights Vested
Shares issued
upon exercise of
options
Other changes2
Balance at the
end of the year
-
4,893,680
750,000
22,206,252
300,000
483,029
1,859,191
1,232,867
-
489,368
75,000
307,692
500,000
-
324,806
119,022
31,725,019
1,815,888
-
1,830,780
-
-
-
1,479,472
1,360,294
1,065,220
5,735,766
-
-
-
-
-
-
-
-
-
-
-
286,172
7,500,000
-
-
-
-
83,971
(42,647)
327,496
825,000
22,513,944
800,000
1,962,501
3,628,262
2,374,462
39,604,169
1 – Includes participation in all capital raisings, including the Entitlement Offer and Placement.
2 – Includes on-market acquisitions and disposals.
There were no shares subject to escrow as at 30 June 2023.
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.
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
Other key
management
personnel
Mr Jed Whitford
Mr Brendon Morton
Ms Julie Reid
Total
1,479,472
1,360,294
1,065,220
5,735,766
-
-
-
-
-
3,437,500
(1,830,780)
825,000
(1,479,472)
1,950,000
(1,360,294)
1,762,500
(1,065,220)
7,975,000
(5,735,766)
-
-
-
-
-
-
-
-
-
-
3,437,500
825,000
1,950,000
1,762,500
7,975,000
Note: on 12 December 2022, the Board resolved, that 1,830,780 2023A and 3,904,986 2023B performance rights issued to KMP had
vested.
(iii) Key Management Personnel Loans
There were no loans to or from key management personnel outstanding at 30 June 2023 (30 June 2022: 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 (2022: $50,000) during the year for
non-executive director’s fees, of which $12,500 related to fees owing at 30 June 2022. An amount of $12,500 was invoiced but unpaid
at 30 June 2023 (2022: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June 2023 that
are not already included in the Remuneration Report contained in the Directors’ Report.
Astral Resources NL Annual Report 30 June 2023
43
Remuneration Report – Audited (continued)
(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 2022 Annual General Meeting
The Company received more than 99% of “yes” votes on its remuneration report for the 2022 financial year. The Company did not
receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
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
25 September 2023
Astral Resources NL Annual Report 30 June 2023
44
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF ASTRAL RESOURCES NL
As lead auditor of Astral Resources NL for the year ended 30 June 2023, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Astral Resources NL and the entities it controlled during the period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 25 September 2023
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
45
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITORS REPORT
To the members of Astral Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Astral Resources NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated balance sheet as at 30 June 2023, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial report, including a summary of significant accounting policies and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
46
Accounting for Exploration and Evaluation Assets
Key audit matter
How the matter was addressed in our audit
At 30 June 2023 the Group held a significant carrying
Our procedures included, but were not limited to:
value of Exploration and Evaluation Assets as disclosed
in Note 12.
•
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
As the carrying value of the Exploration and Evaluation
rights to tenure of those areas of interest
Asset represents a significant asset of the Group, we
remained current at balance date.
considered it necessary to assess whether any facts or
circumstances exist to suggest that the carrying
amount of this asset may exceed its recoverable
amount.
•
Considering the status of the ongoing
exploration programmes in respective areas
of interest by holding discussions with
management, and reviewed the Group’s
In accordance with AASB 6 Exploration for and
exploration budgets, ASX announcements and
Evaluation of Mineral Resources (AASB 6), the
director’s minutes.
recoverability of exploration and evaluation
expenditure requires significant judgment by
management in determining whether there are any
facts or circumstances that exist to suggest that the
carrying amount of this asset may exceed its
recoverable amount.
As a result, this is considered a key audit matter.
•
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed.
•
Verifying, on a sample basis, evaluation
expenditure capitalised during the year for
compliance with recognition and
measurement criteria of AASB 6.
•
•
Considering whether any facts or
circumstances existed to suggest impairment
testing was required.
Assessing the adequacy of the related
disclosures in Note 1(n) and 12.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
47
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 35 to 44 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Astral Resources NL, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
48
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 25 September 2023
49
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2023
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
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
Total comprehensive loss for the year
Total comprehensive loss attributable to equity holders of the
Company
Loss per share attributable to ordinary equity holders
Basic loss per share (dollars per share)
Diluted loss per share (dollars per share)
Note
2023
$
2022
$
4
5
5
5
12
23
6
20
7
7
13,410
173,712
(63,781)
(355,120)
(101,822)
(952,643)
(161,782)
(747,652)
(6,666)
(195,633)
(1,142,252)
(3,713,941)
-
(3,713,941)
(41,928)
(323,450)
(90,409)
(900,065)
(198,549)
(168,271)
(6,501)
(148,377)
(649,574)
(2,353,412)
-
(2,353,412)
(20,000)
(35,000)
(20,000)
(35,000)
(3,733,941)
(2,388,412)
(3,733,941)
(2,388,412)
(0.57)
(0.57)
(0.39)
(0.39)
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 30 June 2023
50
Consolidated Balance Sheet
As at 30 June 2023
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
2023
$
2022
$
9
10
11
12
13
14
15
16
17
17
18
19
20
1,318,706
307,171
1,625,877
63,559
25,271,101
48,025
-
25,382,685
27,008,562
1,109,857
244,053
50,519
1,404,428
-
99,440
99,440
1,503,868
25,504,693
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
65,616,038
2,856,804
(42,968,149)
25,504,693
57,438,927
2,579,090
(39,199,208)
20,818,809
The above consolidated statement of financial position is to be read in conjunction with the accompanying notes.
Astral Resources NL Annual Report 30 June 2023
51
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
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 disposal of investments
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/(used in) 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
2023
$
2022
$
-
(1,871,148)
(1,871,148)
-
(938,036)
(938,036)
(7,251,431)
(5,620,691)
-
70,000
-
13,410
30,000
-
(34,697)
18,712
(7,168,021)
(5,606,676)
7,819,998
(96,841)
(542,425)
7,180,732
3,177,142
(1,858,437)
1,318,706
-
(85,613)
-
(85,613)
9,807,468
(6,630,325)
3,177,142
The above consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
Astral Resources NL Annual Report 30 June 2023
52
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
Issued capital
$
Reserves
$
Accumulated losses
$
Total
$
Balance at 1 July 2021
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)
-
-
-
-
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
Balance at 1 July 2022
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
-
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
Issued capital
$
Reserves
$
Accumulated losses
$
Total
$
57,438,927
-
2,579,090
-
(39,199,208)
(3,713,941)
20,818,809
(3,713,941)
-
-
35,000
(55,000)
(20,000)
35,000
(3,768,941)
(3,733,941)
7,147,252
1,029,859
-
-
-
-
112,393
130,321
-
-
-
-
7,147,252
1,029,859
112,393
130,321
Balance at 30 June 2023
65,616,038
2,856,804
(42,968,149)
25,504,693
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
Astral Resources NL Annual Report 30 June 2023
53
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 all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
(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 31.
(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 2023 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 30 June 2023
54
(e) Going concern
As at 30 June 2023, the Group had cash and cash equivalents of $1,318,706 and had net working capital of $221,449. The Group
incurred a loss for the year ended 30 June 2023 of $3,713,941 (30 June 2022: loss of $2,353,412) and net cash outflows used
in operating activities and investing activities totalling $9,039,169 (30 June 2022: cash outflows of $6,544,712).
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.
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 30 the Group announced on 31 July 2023 that it had secured firm commitments to raise $3
million via a single-tranche placement at an issue price of $0.065 per share to sophisticated and professional
investors. 46,153,846 fully paid ordinary shares were issued on 7 August 2023.
As disclosed in Note 30 the Group announced on 31 July 2023, the Company announced a Share Purchase Plan
(SPP) to raise up to $2 million. The SPP gave eligible shareholders the opportunity to apply for up to $30,000 worth
of new shares at an issue price of $0.065. The SPP Offer opened on 11 August 2023 and closed on 8 September
2023, raising a total of approximately $1.6 million. Pursuant to the SPP, 23,953,814 fully paid ordinary shares were
issued on 15 September 2023.
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.
On the basis of the above, the directors believe that, as at the date of this report, there will be sufficient funds available to
meet the Group’s working capital requirements.
(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.
Astral Resources NL Annual Report 30 June 2023
55
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.
Astral Resources NL Annual Report 30 June 2023
56
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
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.
Astral Resources NL Annual Report 30 June 2023
57
(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,
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
Astral Resources NL Annual Report 30 June 2023
58
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
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.
Astral Resources NL Annual Report 30 June 2023
59
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.
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 31 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 2023. 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.
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.
Astral Resources NL Annual Report 30 June 2023
60
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:
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.
Astral Resources NL Annual Report 30 June 2023
61
4. Other income
Bank interest
Proceeds from disposal of exploration and evaluation asset
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
Consultants and advisors
Accounting
Legal
Other
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% (2022: 25%)
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
Astral Resources NL Annual Report 30 June 2023
2023
$
13,410
-
13,410
2023
$
1,556,908
152,142
1,709,049
(756,406)
952,643
27,106
11,326
25,350
63,781
58,355
265,251
0
31,513
355,120
2023
$
-
-
-
2022
$
18,712
155,000
173,712
2022
$
1,428,371
133,789
1,562,160
(662,096)
900,065
24,557
17,371
-
41,928
54,119
221,929
13,606
33,796
323,450
2022
$
-
-
-
(3,713,941)
(928,485)
(2,353,412)
(588,353)
419
-
285,563
642,503
-
-
-
-
-
602
4,343
162,394
421,014
-
-
-
-
-
62
d) Deferred Tax
Deferred Assets 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
2023
$
2022
$
-
624
41,401
40,210
-
182,013
39,642
14,403,421
(14,707,310)
-
(11,210)
(5,748,771)
5,759,981
-
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
-
Net Deferred Tax
-
-
e) Deferred income tax (revenue)/expense included in income tax expenses comprises:
Decrease / (increase) in deferred tax assets
(Decrease) / increase in deferred tax liabilities
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
Non-recognition of deferred tax liabilities
g) Deferred tax assets not brought to account
Temporary differences
Operating tax losses
(2,332,261)
1,554,152
(16,680)
794,789
-
135,606
(8,750)
(126,856)
-
(5,456,092)
14,403,421
8,947,329
(1,998,853)
1,578,281
(625,421)
1,045,992
-
8,750
(8,750)
-
-
(3,749,667)
11,902,208
8,152,541
7. Earnings per share
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)
2023
$
(0.57)
(0.57)
2023
$
2022
$
(0.39)
(0.39)
2022
$
Profit/(loss) used in the calculation of basic and diluted earnings per share is as follows:
Profit/(loss)
Loss from continuing operations
(3,713,941)
(3,713,941)
(2,353,412)
(2,353,412)
Astral Resources NL Annual Report 30 June 2023
63
Weighted average number of ordinary shares
2023
No.
2022
No.
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
653,954,117
595,943,485
653,954,117
595,943,485
8. Dividends paid or proposed
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
2023
$
2022
$
1,318,706
3,177,142
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 $21,467 (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:
$21,467 held as a bank guarantee for the Company’s 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.
10. Trade and other receivables
Current
Sundry debtors
Rental deposits
GST receivable
Prepayments
2023
$
2022
$
3,045
11,564
247,722
44,841
307,171
560
11,544
127,929
9,273
149,306
The Group did not have any receivables that were past due as at 30 June 2023 (30 June 2022: Nil). The Group therefore did not
consider a credit risk on the aggregate balances as at 30 June 2023. 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
2023
$
52,596
(18,751)
33,845
48,159
(18,445)
29,714
2022
$
52,596
(13,916)
38,680
48,159
(10,845)
37,314
Total
63,559
75,994
Astral Resources NL Annual Report 30 June 2023
64
As at 1 July 2021
Additions
Depreciation
As at 30 June 2022
As at 1 July 2022
Additions
Depreciation
As at 30 June 2023
12. Exploration and evaluation expenditure
Non-Current
Exploration and evaluation - at cost
Reconciliations
Motor
Vehicles
$
44,206
-
(5,526)
38,680
38,680
-
(4,835)
33,845
Plant and
equipment
$
38,809
6,625
(8,120)
37,314
37,314
-
(7,600)
29,714
Total
$
83,015
6,625
(13,646)
75,994
75,994
-
(12,435)
63,559
2023
$
2022
$
25,271,101
19,212,143
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Movement
Opening balance
Exploration expenditure capitalised during the year
Koongie Park J/V Contribution2
Impairment expense
Revaluation of rehabilitation provision
Closing balance
Comprised of:
Carnilya Hill Project
Feysville Project
Koongie Park Project2
Leonora Project1
Mandilla Project
Impairment
Mandilla Project
Feysville Project
Koongie Park Project2
Leonora Project1
Carnilya Hill Project
2023
$
2022
$
19,212,143
13,227,016
7,235,908
(441,831)
(747,652)
12,533
5,723,680
441,831
(168,271)
(12,113)
25,271,101
19,212,143
-
4,752,188
-
-
20,518,913
25,271,101
(6,250)
(73,460)
(662,150)
(196)
(5,595)
(747,652)
-
3,465,083
1,085,883
-
14,661,177
19,212,143
(4,578)
(129,944)
(10,456)
(9,766)
(13,527)
(168,271)
1 – Leonora Project disposed of on 10 January 2022. All residual costs relating to the Leonora Project have been immediately impaired.
Astral Resources NL Annual Report 30 June 2023
65
2 - Effective from 30 June 2023, Astral’s residual participating interest in the KPJV was converted to a 1% Net Smelter Return royalty
(NSR Royalty). Astral is not able to estimate the quantum, timing and likelihood of any potential economic benefits arising from the
NSR Royalty. As such, no fair value can be attributed and the carrying value has been impaired in full.
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 $747,652 (2022: $168,271).
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.
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
Termination of leases
Depreciation charge for the year
Closing balance
14. Investments at fair value through other comprehensive income
Non-current
Listed investments1
2023
$
2022
$
113,781
55,973
(32,342)
(89,387)
48,025
2023
$
-
-
58,321
132,222
-
(76,762)
113,781
2022
$
90,000
90,000
1 – During the financial year, Astral disposed of 1 million shares in Ozz Resources Limited (ASX: OZZ) (OZZ) originally received as partial
consideration for the disposal of the Leonora Base Metals Project. Astral remains entitled to receive a further 1 million OZZ shares in
the event that OZZ announces a JORC compliant gold resource of greater than 50,000 ounces or when commercial mining commences
(refer to Note 24).
15. Trade and other payables
Current
Trade payables
Accrued directors’ fees
Other payables and accruals
Joint Venture Contribution Liability – Koongie Park
All amounts are expected to be settled within 12 months.
2023
$
2022
$
984,497
55,002
70,358
-
1,109,857
716,390
26,000
435,033
441,831
1,623,794
Astral Resources NL Annual Report 30 June 2023
66
16. Employee benefits
Current
Provision for annual leave
PAYG Withholding
Superannuation payable
17. Lease liabilities
Current
Lease liability
Non-current
Lease liability
2023
$
160,839
44,438
38,775
244,053
2022
$
119,326
40,678
11,784
171,788
2023
$
2022
$
50,519
77,111
-
50,519
39,956
117,067
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.
2023
$
2022
$
Non-current
Feysville
Koongie Park1
Mandilla
26,800
3,567
56,540
86,907
1 - Effective from 30 June 2023, Astral’s residual participating interest in the KPJV was converted to a 1% Net Smelter Return royalty.
With effect from 30 June 2023, Astral’s obligations with respect to rehabilitation at the Koongie Park Project have ceased.
27,480
-
71,960
99,440
19. Issued capital
Ordinary shares – fully paid
718,691,946
596,179,239
65,616,038
57,438,927
2023
Shares
2022
Shares
2023
$
2022
$
(i) Movements in ordinary share capital
Date
Details
30-Jun-21
Balance
30-Jun-22
Balance
24-Oct-22
16-Dec-22
8-May-23
-
Entitlement Offer
Conversion of Performance Rights
Placement
Share issue costs
30-Jun-23
Closing Balance
No. of Shares
Issue Price
$
589,008,384
596,179,239
69,230,740
7,170,854
46,111,113
-
718,691,946
-
-
$0.065
-
$0.072
-
56,409,068
57,438,927
4,499,998
1,029,859
3,320,000
(672,746)
-
65,616,038
Astral Resources NL Annual Report 30 June 2023
67
(ii) Terms and conditions of issued capital
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:
a.
Listed options
Tranche
Grant date
Expiry date
AARO
AARO1
24-Oct-22
24-Oct-22
24-Oct-25
24-Oct-25
Total listed options on issue at the date of this report
Exercise
price
$0.140
$0.140
1 – Listed options issued to the Lead Manager, pursuant to the Underwriting Agreement.
b. Unlisted options
Tranche
Grant date
L
19-Nov-21
Expiry date
19-Nov-23
Total unlisted options on issue at the date of this report
Exercise
price
$0.119
Number
34,615,317
9,000,000
43,615,317
Number
3,000,000
3,000,000
20. Reserves
Options reserve (i)
Performance rights reserve (ii)
Financial assets at fair value through other comprehensive income (iii)
2023
$
1,750,657
1,106,147
-
2,856,804
2022
$
1,620,336
993,754
(35,000)
2,579,090
Astral Resources NL Annual Report 30 June 2023
68
(ii) Options reserve
The options reserve recognises options rights issued as share based payments. The following options were issued during the
prior year:
Options
Opening balance as at 1 July 2021
Expiry of options
Unlisted options issued to Director
Share based payment expense (options issued prior to 1 July 2021)
Number
Reserve
13,500,000
(1,250,000)
3,000,000
-
1,537,548
-
75,164
7,624
Closing balance as at 30 June 2022
15,250,000
1,620,336
Options
Number
Reserve
Opening balance as at 1 July 2022
Expiry of options
Issue of listed options to Lead Manager
Issue of free listed options pursuant to Entitlement Offer
Closing balance as at 30 June 2023
(iii)
Performance rights reserve
15,250,000
(12,250,000)
9,000,000
34,615,317
46,615,317
1,620,336
-
130,321
-
1,750,657
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 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 year
Closing balance as at 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.
Performance rights
Number
Reserve
Opening balance as at 1 July 2022
Share based payment expense (rights issued prior to 1 July 2021)
Performance Rights vested and converted to ordinary shares2
Performance Rights issued to key management personnel and employees
Closing balance as at 30 June 2023
7,170,854
-
(7,170,854)
9,567,500
9,567,500
993,754
1,029,859
(1,029,859)
112,393
1,106,147
2 – On 16 December 2022, following the announcement of a >1Moz JORC 2012 Mineral Resource, 1,830,780 2020A and 5,340,074
2020B performance rights vested and were exercised resulting in the Company issuing 7,170,854 fully paid ordinary shares. Refer
to Note 23 for valuation methodology and impact on share-based payment expenditure.
(iv)
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.
Astral Resources NL Annual Report 30 June 2023
69
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 2022
Change in fair value
Realised loss/(gain) on disposal of equity instruments at fair value through
other comprehensive income1
30 June 2023
Reserve
(35,000)
(20,000)
55,000
-
1 - During the financial year, Astral disposed of 1,000,000 shares in Ozz Resources Limited (ASX: OZZ) for total consideration of
$70,000.
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
Change in operating assets and liabilities
Change in trade and other receivables
Change in trade and other payables
Cash flow used in operations
Non-cash financing and investing activities
2023
$
2022
$
(3,713,941)
(13,410)
6,661
1,142,252
101,822
747,652
4,379
-
(38,072)
(108,492)
(1,871,148)
(2,353,412)
(18,712)
6,498
649,574
90,409
168,271
4,053
(155,000)
2,604
667,679
(938,036)
During the year, the Company incurred interest expense on lease liabilities of $6,661 (2022: $6,498).
There are no other non-cash financing and investing activities other than the above.
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 (2022: 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.
Astral Resources NL Annual Report 30 June 2023
70
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
(b) Liquidity Risk
Carrying Amount
2023
$
1,318,706
307,171
1,625,877
2022
$
3,177,142
149,306
3,326,448
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 on 31 July 2023,
announced hat it has secured commitments to raise $3m via a single-tranche share placement (Placement) comprising the issue of
approximately 46.2 million shares at an issue price of A$0.065 per share to sophisticated and professional investors.
In addition to the Placement, the Company also undertook a non-underwritten Share Purchase Plan (SPP) to raise $2 million . The
SPP opened on 11 August 2023 to all eligible shareholders at the same issue price as the Placement. The SPP closed on 8 September
2023, raising a total of approximately $1.6 million. Pursuant to the SPP, 23,953,814 fully paid ordinary shares were issued on 15
September 2023.
The Group 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 2023
Trade and other payables
Lease liabilities
Total
Carrying
Amount
Contractual
Cash Flows
12 Months or
Less
1,109,857
50,519
1,160,376
1,109,857
51,555
1,161,412
1,109,857
51,555
1,161,412
1-2 years
2-5 years
>5 years
-
-
-
-
-
-
30 June 2022
Trade and other payables
Lease liabilities
Total
Carrying
Amount
Contractual
Cash Flows
12 Months or
Less
1-2 years
2-5 years
>5 years
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
-
-
-
-
-
-
(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.
Astral Resources NL Annual Report 30 June 2023
71
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
2023
$
2022
$
1,318,706
3,177,142
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 30 June 2023. 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
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)
Listed options
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 the record date at an issue price of $0.065 per New Share together with one (1) free-attaching new
option exercisable at $0.14, with an expiry date of 24 October 2025 (Option) for every two (2) new shares issued, to raise
approximately $3.9 million (before costs) (Entitlement Offer). The Entitlement Offer closed on 17 October 2022, with the Shortfall
Astral Resources NL Annual Report 30 June 2023
72
Offer oversubscribed. To accommodate the excess demand, the Company announced it would undertake an additional offer to raise
an additional $0.6 million on the same terms as the Entitlement Offer (Additional Offer).
Following completion of the Additional Offer, the total amount raised was $4.5 million (before costs). On 24 October 2022, the
Company issued a total of 69,230,740 new Shares and 34,615,385 Options. The Options are quoted under the ASX code AARO.
Under the terms of the Underwriting Agreement, the Lead Manager for the Entitlement Offer was issued 9,000,000 AARO listed
options. The terms and conditions of the AARO listed options on issue at 30 June 2023 are as follows:
Tranche
Number
Grant Date
Expiry Date
AARO1
AARO2
Total
34,615,317
9,000,000
43,615,317
24-Oct-22
24-Oct-22
24-Oct-25
24-Oct-25
Exercise
Price
(cents)
$0.14
$0.14
Fair Value at
Grant Date
Vesting Date
-
$130,321
24-Oct-22
24-Oct-22
1 – No share-based payment expenditure was recognised as the options were classified as free attaching securities to the Entitlement
Offer.
2 - The fair value of the 9,000,000 AARO listed options granted to the Lead Manager 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.
(c) 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 2023 are as follows:
Tranche
Number
Grant Date
Expiry Date
L
Total
3,000,000
3,000,000
19-Nov-21
19-Nov-23
Exercise
Price
(cents)
11.9
Fair Value at
Grant Date
Vesting Date
$0.025
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 (listed and
unlisted) 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
2023
2022
Number
15,250,000
43,615,317
-
-
(12,250,000)
46,615,317
46,615,317
Weighted Average
Exercise Price
$
Number
Weighted Average
Exercise Price
$
$0.224
$0.14
-
-
$0.250
$0.139
$0.139
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
2.20 years
0.63 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 share options (listed and unlisted) 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
AARO
Listed options
24-Oct-22
9,000,000
$0.14
24-Oct-25
Immediate
Astral Resources NL Annual Report 30 June 2023
73
The Options were valued using a Black-Scholes Model with the following inputs:
Tranche
Valuation Date
Expected
Volatility
Risk-Free
Interest Rate
Expiry
Underlying
Share Price
Value per
Options
($)
Total
Value
($)
AARO
24-Oct-22
66.68%
3.60%
24-Oct-25
$0.060
0.0145
130,321
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.
(d) Performance Rights
Performance rights granted during the year as share based payments are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
2023A Performance rights
1-Jan-23
2,392,500
2023B Performance rights
1-Jan-23
3,771,250
2023C Performance rights
1-Jan-23
1,044,750
2023D Performance rights
1-Jan-23
1,881,250
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
31-Dec-26
Non-
transferable
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
31-Dec-26
Non-
transferable
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
rights1
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 rights2
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
1 – 1,830,780 2020A Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The 2020A
Performance Rights were converted to fully paid ordinary shares on 16 December 2022. No share-based payment expenditure had previously been
recognised in relation to these performance rights. In accordance with AASB 2, the remaining share-based payment expense has been recognised in
the current financial year.
2 – 5,340,074 2020B Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The 2020B
Performance Rights were converted to fully paid ordinary shares on 16 December 2022. No share-based payment expenditure had previously been
recognised in relation to these performance rights. In accordance with AASB 2, the remaining share-based payment expense has been recognised in
the current financial year.
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
Astral Resources NL Annual Report 30 June 2023
74
2020A/2020B Performance Rights
On 16 December 2022, following the announcement of a >1Moz JORC 2012 Mineral Resource, 1,830,780 2020A and 5,340,074 2020B
performance rights vested and were exercised resulting in the Company issuing 7,170,854 fully paid ordinary shares.
A valuation of the 2020A and 2020B performance rights was completed with respect to the 30 June 2020 financial year. At the point
in time when the valuation was undertaken, the Company assessed the probability of performance rights vesting as 0% and as such
no share-based payment expense has previously been recognised. In accordance with AASB 2, the total share-based payment
expense relating to these performance rights has been recognised in the current financial year.
The 2020A and 2020B performance rights vested 100%, upon on the later date to occur of:
a)
b)
the Company announcing a JORC compliant Mineral Resource of at least 1,000,000 ounces; and
the date when the holder gives a notice to the Company confirming that the holder would like the Performance Rights to vest.
The 2020A and 2020B performance rights were subject to non-market vesting conditions and were valued based upon the share
price at the deemed grant date. The table below outlines the valuation at grant date as compared to the value of the ordinary shares
issued upon exercise of the performance rights.
Tranche
Grant Date
Number of
instruments
issued to KMP
Valuation at
grant date
2020A
2020B
Total
16-Jun-20
23-Jun-20
1,830,780
5,340,074
7,170,854
$0.125
$0.15
Share based
payment
expenditure
recognised
$228,848
$801,011
$1,029,859
Share price
at date
of exercise1
$0.065
$0.065
Market value at
date of exercise1
$119,001
$347,105
$466,106
1 – Performance rights exercised and converted on 16 December 2022. Last closing price of shares prior to exercise was $0.065.
2023A Performance Rights
On 12 January 2023, the Company issued 2,870,250 unquoted 2023A Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
The 2023A Performance Rights are retention incentives which are not subject to performance conditions. The vesting conditions are
that the 2023A Performance Rights will vest in equal tranches over a 2.5-year period as follows:
20% of the 2023A Performance Rights vest 30 June 2023;
40% of the 2023A Performance Rights vest 30 June 2024; and
40% of the 2023A Performance Rights vest 30 June 2025.
The 2023A Performance Rights were subject to non-market vesting conditions and were valued based upon the share price at the
deemed grant date. The table below outlines the valuation at grant date.
Tranche
Grant Date
2023A
1-Jan-23
Number of
instruments
issued
2,870,250
Valuation per
right at grant
date
$0.072
Number of
rights vested at
reporting date1
574,050
1 – Rights vested at 30 June 2023, but formal Board determination is required, which has not been made at the date of this report.
2023B Performance Rights
On 12 January 2023, the Company issued 3,771,250 unquoted 2023B Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
The 2023B Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 30% of the 2023B Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 15% of the 2023B Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
10% of the 2023B Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
Astral Resources NL Annual Report 30 June 2023
75
o
50% of the 2023B Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
ESG: 5% of the 2023B Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023B Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
2023B
1-Jan-23
Number of
instruments
issued
3,771,250
Valuation per
right at grant
date
$0.0303
Number of
rights vested at
reporting date
Nil
2023C Performance Rights
On 12 January 2023, the Company issued 1,044,750 unquoted 2023C Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
The 2023C Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 30% of the 2023C Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 50% of the 2023C Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
o
10% of the 2023C Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
15% of the 2023C Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
ESG: 5% of the 2023C Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023C Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
2023C
1-Jan-23
Number of
instruments
issued
1,044,500
Valuation per
right at grant
date
$0.0093
Number of
rights vested at
reporting date
Nil
2023D Performance Rights
On 12 January 2023, the Company issued 1,881,250 unquoted 2023D Performance Rights to eligible employees, pursuant to the
Company’s Employee Incentive Plan.
The 2023D Performance Rights are subject to the following performance conditions and will vest if and when the conditions are
satisfied:
Mineral Resources: 60% of the 2023D Performance Rights vest upon the public announcement by the Company of a total
combined Mineral Resource estimate of at least 1.5Moz of Au of at least 1.0g/t Au.
Ore Reserve: 20% of the 2023D Performance Rights vest upon the public announcement by the Company of a total combined
Ore Reserve estimate of at least 0.6Moz of Au of at least 1.0g/t Au.
Share Price: either
o
o
10% of the 2023D Performance Rights vest 2.5 years after issue if the Company's Total Shareholder Return (TSR)
over the performance period is in the 50th to 60th percentile of the nominated peer group; or
15% of the 2023D Performance Rights vest 2.5 years after issue if the Company's TSR over the performance period
is in at least the 60th to 80th percentile of the nominated peer group.
Astral Resources NL Annual Report 30 June 2023
76
ESG: 5% of the 2023D Performance Rights vest 2.5 years after issue if the Company has published in each financial year during
the performance period the Company's environmental, social and governance strategy either in its annual report or in a stand-
alone sustainability report.
The 2023D Performance Rights are subject to both market and non-market vesting conditions and were valued using Hoadleys Hybrid
ESO Model Relative TSR vs Peer Group (a Monte Carlo simulation model). The table below outlines the valuation at grant date.
Tranche
Grant Date
2023D
1-Jan-23
Number of
instruments
issued
1,881,250
Valuation per
right at grant
date
$0.0093
Number of
rights vested at
reporting date
Nil
(e) 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
Performance rights issued to directors and employees (issued in prior year)
Options issued to director (issued in prior year)
Recognised in Statement of Financial Position (Assets and/or Equity)
Options issued to advisors
2023
$
112,393
1,029,859
-
1,142,252
2022
$
-
566,786
82,788
649,574
130,321
-
1,272,573
649,574
24. Contingent assets
(a) Koongie Park Royalty
On 8 February 2021, Astral entered into an Earn-In and Joint Venture Agreement (JVA) with AuKing Mining Limited (ASX: AKN)
concerning the Koongie Park Joint Venture (KPJV). Effective from 30 June 2023, Astral’s residual participating interest in the KPJV
was converted to a 1% Net Smelter Return royalty.
(b)
Leonora Base Metals 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
1,000,000 OZZ shares, which were disposed of during the financial year. A further 1 million OZZ shares will be issued to Astral in the
event that Ozz Resources Limited announces a JORC compliant gold resource of greater than 50,000 ounces or when commercial
mining commences.
25. Contingent liabilities
The Group has given a bank guarantee at 30 June 2023 of $21,467 (30 June 2022: bank guarantee of $21,414) (refer to Note 9).
26. Commitments
(c)
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.
Astral Resources NL Annual Report 30 June 2023
77
30 June 2023
Exploration expenditure commitments
Payable:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Total
30 June 2022
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
$
158,100
427,448
304,703
890,250
79,209
54,767
-
133,976
-
-
-
-
61,766
128,714
41,724
232,203
299,075
610,929
346,426
1,256,430
Mandilla
$
Feysville
$
Koongie Park
$
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
1 – On 7 July 2023, announced that effective from 30 June 2023, its participating interest in the Koongie Park Project has been
converted to a 1% Net Smelter Return royalty. All expenditure commitments relating to Koongie Park are to be met by AuKing Mining
Limited from 30 June 2023.
27. 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
Leigh Warnick
Marc Ducler
Justin Osborne
Peter Stern
David Varcoe
Position
Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
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
Astral Resources NL Annual Report 30 June 2023
78
(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
2023
$
1,108,433
92,535
910,857
2,111,825
2022
$
1,182,318
96,539
487,157
1,766,014
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.
Performance Rights
During the current period, 7,975,000 performance rights were awarded to key management personnel. See Note 23 and the
Remuneration Report for further details of these related party transactions.
During the 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 7,170,854 fully paid ordinary shares on 16 December 2022, of which 5,735,766 fully paid ordinary shares were issued to KMP.
(c) Compensation by category of KMP
Consulting fees were paid to directors, with the exception of Mr Justin Osborne 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 2023 (30 June 2022: 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
2023
$
2022
$
50,000
50,000
Metropolis Pty Ltd, a company of which Peter Stern is a director, received $50,000 excluding GST (2022: $50,000) during the year for
non-executive director’s fees, of which $12,500 related to fees owing at 30 June 2022. An amount of $12,500 was invoiced but unpaid
at 30 June 2023 (2022: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June 2023 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 2023.
28. Interests in Subsidiaries
(a)
Parent entities
Astral Resources NL is the ultimate Australian parent entity.
Astral Resources NL Annual Report 30 June 2023
79
(b)
Subsidiaries
The consolidated financial statements include the financial statements of Astral Resources NL and the subsidiaries listed in the
following table.
Mandilla Gold Pty Ltd
Feysville Gold Pty Ltd
Koongie Park Gold Pty Ltd
Koongie Park Pty Ltd1
2023
2022
Country of
Incorporation
% Equity
Interest
Country of
Incorporation
% Equity
Interest
Australia
Australia
Australia
Australia
100
100
100
-
Australia
Australia
Australia
Australia
100
100
100
100
Principal Activity
Operating subsidiary
Operating subsidiary
Operating subsidiary
Operating subsidiary
1 – Effective from 30 June 2023, Astral’s participating interest in the Koongie Park Project has been converted to a 1% Net Smelter
Return royalty. In accordance with the terms of the joint venture agreement, ownership of Koongie Park Pty Ltd was transferred to
AuKing Mining Limited.
29. 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
30. Events after the reporting date
2023
$
50,345
-
50,345
2022
$
39,817
-
39,817
The following 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:
On 7 July 2023, the Company announced that effective from 30 June 2023, its participating interest in the Koongie Park
Project converted to a 1% Net Smelter Return royalty.
On 20 July 2023, the Company announced an updated JORC 2012 Mineral Resource Estimate (MRE) for Mandilla of 37
million tonnes at 1.1g/t Au for 1.27 million ounces of contained gold (July 2023 MRE), encompassing the cornerstone Theia
deposit and the Iris, Eos and Hestia deposits.
On 31 July 2023, the Company announced that it had secured firm commitments to raise $3 million via a single-tranche
placement at an issue price of $0.065 per share to sophisticated and professional investors. 46,153,846 fully paid ordinary
shares were issued on 7 August 2023.
On 31 July 2023, the Company announced a Share Purchase Plan (SPP) to raise up to $2 million. The SPP gives eligible
shareholders the opportunity to apply for up to $30,000 worth of new shares at an issue price of $0.065. The SPP Offer
opened on 11 August 2023 and closed on 8 September 2023, raising a total of approximately $1.6 million. Pursuant to the
SPP, 23,953,814 fully paid ordinary shares were issued on 15 September 2023.
On 21 September 2023, the Company announced the results of a positive Scoping Study for Mandilla. The Study was based
on a standalone development, including a 2.5Mtpa CIL processing plant and associated infrastructure, identified as the
optimum commercialisation strategy for Mandilla. Highlights of the Scoping Study are discussed in the Review of Operations
section of this Report.
Astral Resources NL Annual Report 30 June 2023
80
The Company has released the following ASX Announcements since the end of the financial year.
Date
3-Jul-23
7-Jul-23
7-Jul-23
11-Jul-23
12-Jul-23
20-Jul-23
27-Jul-23
31-Jul-23
31-Jul-23
30-Aug-23
18-Sep-23
21-Sep-23
Details
Outstanding Diamond Hole Hits Multiple Mineralised Zones
Koongie Park Joint Venture Interest Converted to 1% Royalty
Trading Halt
Suspension from Quotation
Reinstatement to Quotation
Mandilla Gold Resource Surpasses 1.25Moz – MRE Upgrade
Trading Halt
$3m Placement to Advance Kalgoorlie Gold Projects
Quarterly Activities & Cashflow Report
High-Grade Air-Core Results of up to 28.0g/t Au at Eos
More High-Grade Gold Intercepts at Kamperman (Feysville)
Mandilla Gold Project – Positive Scoping Study
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.
31. Parent entity information
The following details information related to the parent entity, Astral Resources NL, as at 30 June 2023. 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
Commitments
2023
$
1,625,877
25,355,205
26,981,082
1,404,428
71,960
1,476,388
2022
$
3,326,448
19,465,117
22,791,566
1,872,694
100,063
1,972,757
25,504,693
20,818,809
65,616,038
2,841,282
(42,952,627)
25,504,693
(3,713,941)
(3,713,941)
(3,713,941)
57,438,927
2,579,090
(39,199,208)
20,818,809
(2,609,426)
(2,609,426)
(2,609,426)
The parent entity has $1,130,451 (2022: $1,166,955) of commitments relating to minimum exploration expenditure on its various
tenements at financial year end. These minimum exploration expenditure commitments are included in Note 26.
Guarantees
The parent entity has given a bank guarantee of $21,467 as at 30 June 2023 (30 June 2022: bank guarantee of $21,414) (refer to
Note 9).
Astral Resources NL Annual Report 30 June 2023
81
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 2023 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
25 September 2023
Astral Resources NL Annual Report 30 June 2023
82
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 2023 is 765,956,901 ordinary fully paid shares. 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
88
81
387
914
510
1,980
Units
17,227
258,863
3,125,472
34,840,584
727,714,755
765,956,901
%
0.00%
0.03%
0.41%
4.55%
95.01%
100.00%
There were 345 holders of less than a marketable parcel of ordinary shares at 31 August 2023.
2. Top 20 Shareholders as at 31 August 2023
The top twenty shareholders of fully paid ordinary shares in the Company as at 31 August 2023 is as follows:
#
1
2
3
4
5
6
Name
Porter Street Investments Pty Ltd
Braham Consolidated Pty Ltd
HSBC Custody Nominees (Australia) Limited
ACN 106 966 401 Pty Ltd
Braham Investments Pty Ltd
Brazil Farming Pty Ltd
7 Mr Peter Andrew Stern
8
9
Invia Custodian Pty Limited
ACN 106966401 Pty Ltd
Valbonne II
10
11 Mrs Sabina Fontana
12
13
C Thwaites Pty Ltd
Equity Trustees Limited
13 Mr Graeme Ian Smith
14 Wise Plan Pty Ltd
15
Citicorp Nominees Pty Limited
16 Mr Matthew Lloyd Haddon
17
Mr Michael Gerard Murphy & Mr John Daniel Murphy
Brazil Farming Pty Ltd
18
19
20 Mr Gregory Allen Cave & Ms Robyn Deanne Marshall
Dixtru Pty Limited
Number of shares
59,610,087
44,721,239
29,645,139
27,195,415
26,769,295
19,725,211
17,474,359
17,141,105
16,665,418
13,500,000
13,500,000
13,034,936
12,289,084
11,200,000
9,905,847
9,846,090
7,750,000
7,570,876
7,311,764
6,888,888
6,438,641
%
7.78%
5.84%
3.87%
3.55%
3.49%
2.58%
2.28%
2.24%
2.18%
1.76%
1.76%
1.70%
1.60%
1.46%
1.29%
1.29%
1.01%
0.99%
0.95%
0.90%
0.84%
Total remaining holders balance
Total
378,183,394
765,956,901
49.37%
100.00%
Astral Resources NL Annual Report 30 June 2023
83
3.
Listed options
There were 359 holders of listed options over shares in the Company holding a total of 43,615,317 listed options as at 31 August
2023. The grant date of the listed options was 24 October 2022. The listed options are exercisable at $0.14, expiring 24 October 2025.
The top twenty holders of listed options as at 31 August 2023 is as follows:
#
Name
1 Mrs Heather Soucik
2
3
4
5
6
7
8
9
ACN 106966401 Pty Ltd
Braham Consolidated Pty Ltd
Equity Trustees Limited
Valbonne II
ACN 106 966 401 Pty Ltd
Mr Michael Gerard Murphy & Mr John Daniel Murphy
HSBC Custody Nominees (Australia) Limited
Superhero Securities Limited
10
Ladyman Super Pty Ltd
11 Goffacan Pty Ltd
12 Mr Clarke Harold Wilkins & Ms Julie Strinich
13 Mr Mark Russell Deegan
14
15
Citicorp Nominees Pty Limited
Brazil Farming Pty Ltd
16 Mr James Edward Drinnan
17
El-Raghy Kriewaldt Pty Ltd
17 Mrs Sabina Fontana
17 Mrs Yongmei Chen
18
C Thwaites Pty Ltd
19 Wise Plan Pty Ltd
20
Independent Marine Pte Ltd
Total remaining holders balance
Total
4. Unquoted securities
Unlisted options
Number of listed options
8,256,877
3,864,670
2,692,307
2,040,724
1,250,000
1,237,413
1,083,488
915,948
880,256
769,230
761,459
750,000
729,423
690,293
625,000
516,584
500,000
500,000
500,000
495,170
450,265
384,615
%
18.93%
8.86%
6.17%
4.68%
2.87%
2.84%
2.48%
2.10%
2.02%
1.76%
1.75%
1.72%
1.67%
1.58%
1.43%
1.18%
1.15%
1.15%
1.15%
1.14%
1.03%
0.88%
13,721,595
43,615,317
31.46%
100.00%
There are 3,000,000 unlisted options over shares in the Company as at 31 August 2023 as follows:
Tranche
Grant date
Expiry date
L
19-Nov-21
19-Nov-23
Total unquoted options on issue
Exercise
price
$0.119
number
3,000,000
15,250,000
The names of the security holders holding more than 20% of an unlisted class of security are listed below:
Security
Options expiring 19
November 2023
Exercise
Price
Number of
options
Number of
holders
Holders with > 20%
$0.119
3,000,000
1
Janet Tunjic Pty Ltd
Total
3,000,000
Astral Resources NL Annual Report 30 June 2023
84
Performance rights
There were 9,567,500 performance rights on issue as at 31 August 2023 as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
2023A Performance rights
1-Jan-23
2,392,500
2023B Performance rights
1-Jan-23
3,771,250
2023C Performance rights
1-Jan-23
577,500
2023D Performance rights
1-Jan-23
1,233,750
Nil – performance rights vest and are converted to
ordinary shares on achievement of performance
conditions
Nil – performance rights vest and are converted to
ordinary shares on achievement of performance
conditions
Nil – performance rights vest and are converted to
ordinary shares on achievement of performance
conditions
Nil – performance rights vest and are converted to
ordinary shares on achievement of performance
conditions
Expiry
Date
31-Dec-26
31-Dec-26
31-Dec-26
31-Dec-26
5. Voting rights
See Note 19 of the financial statements.
6.
Substantial shareholders at 31 August 2023
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
7. Restricted securities subject to escrow period
There are currently no securities on issue subject to escrow.
8. On-market buyback
Number of
shares held
% of issued capital
held
Date of last notice
64,086,536
58,712,757
45,200,933
8.37%
9.85%
6.79%
18-Aug-23
7-Oct-20
7-Nov-22
There is currently no on-market buyback program for any of Astral Resources NL’s listed securities.
Astral Resources NL Annual Report 30 June 2023
85