More annual reports from Anson Resources:
2023 Report2023
Annual Report
for the Year Ended 30 June 2023
Corporate Information
Directors
Share Registry
Advanced Share Registry Limited
110 Stirling Highway
Nedlands WA 6009
Telephone: 1300 113 258
www.advancedshare.com.au
Securities Exchange Listings
Australian Securities Exchange: (ASX: ASN)
OTC Markets Group (OTCQB: ANSNF)
ABN
46 136 636 005
Bruce Richardson
Executive Chairman and CEO
Peter (Greg) Knox
Executive Director
Michael van Uffelen
Non-executive Director
Company Secretary
Nicholas Ong
Auditor
Stantons
40 Kings Park Road
West Perth WA 6005
Registered and Principal Office
Level 3, 10 Eagle Street
Brisbane, QLD 4000, Australia
Telephone: +61 7 3132 7990
Email: info@ansonresources.com
www.ansonresources.com
Contents
1.0 Company Profile
1.1
1.2
1.3
Chairman and Chief Executive Officer Letter
Financial Highlights
Review of Operations
2.0 Directors’ Report
2.1
2.2
2.3
Directors
Remuneration report
Auditor’s Independence Declaration
3.0 Financial Statements
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
Consolidated Statement of Profit or Loss and other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditors Report
ASX Additional Information
4
8
10
40
46
57
60
61
62
63
64
106
107
112
1
Annual Report 2023 w
Paradox Lithium
Project land holding
has increased by 8%
over the period a
total of 231.35 km2.
2
70 w
“the Paradox Project’s advanced potential
to become a major supplier of high purity,
battery grade Lithium Carbonate into the
US Electrical Vehicle market”
70 Company Profile
1.1
Chairman and Chief Executive Officer Letter
Dear Shareholders,
We are extremely proud to have continued
to achieve major milestones for the Paradox
Lithium Project in the 2023 financial year.
During the financial year, we completed
a capital raise of $50 million which has
supported our continued development
of the Paradox Lithium Project including
resource expansion and commencement
of the Front End Engineering and Design
(“FEED”) Study for the proposed lithium
carbonate processing plant.
The Definitive Feasibility Study (“DFS”),
completed in September 2022, confirmed
the Paradox Project’s advanced potential
to become a major supplier of high purity,
battery grade Lithium Carbonate into the US
Electrical Vehicle market. Initially producing
13,074 tonnes per annum of high purity
Lithium Carbonate over the first 10 years of
project life, and then continuing producing
at lower commercial levels, if no further
extraction wells were to come on-line, up to
a production life of 23 years. The DFS also
established outstanding project economics
and upgraded lithium resources.
Post the completion of the DFS, Anson
Resources (“Anson” or “the Company”) has
entered a period of rapid development
and value creation as it progresses the
advanced development of the Project.
Worley Group Inc. (Worley) has been
appointed to undertake the FEED, which
will build on the Company’s Utah-based
projects robust DFS. The FEED Study, which
is expected to be completed in early 2024,
is a pivotal next step in Anson’s plans for
the construction of a lithium carbonate
processing plant.
During May 2023, we signed a Letter of
Intent for the strategic acquisition of 140.39
acres (0.568 km2) land package of privately
owned, industrial use land in Green River,
Utah. The Company plans to utilise the
new site as the location for the future
lithium extraction and production facility
for its Green River Project. The agreement
includes water rights, as well as the oil and
gas and mineral rights underlying the new
landholding.
4
Company Profile
Fast facts:
Private, industrial use land in eastern Utah
government approval process. Applications
13,074
tonnes
The DFS proposes that
the Project will produce
13,074 tonnes per
annum of high purity
Lithium Carbonate
23
years
Continuing
producing at lower
commercial levels
up to a minimum
production life of
23 years.
is difficult to secure and this acquisition
for other approvals have also been
enables Anson to simplify the approval
lodged and are progressing through the
processes. We consider the existing
Government of Utah system.
infrastructure that surrounds this area to be
world class, potentially reducing the work
and costs required to develop the project.
The acquisition successfully completed in
September 2023.
Post the reporting period, Anson produced
its first sample battery-grade lithium
carbonate product from brines from its
Paradox Project. This was produced at
the Company’s Lithium Innovation Centre
We have also made significant progress in
(LIC), where it has also created its Sample
permitting during financial year 2023 and
Demonstration Plant (SDP). The lithium
into 2024. We received an “air emission
carbonate has been produced using the
exemption” from the Division of Air Quality
flowsheet designed for Anson’s lithium-rich
(DAQ), State of Utah and the Federal
brines at the Project by its direct lithium
Environmental Protection Agency (EPA),
extraction (DLE) partner. Sample production
secured water rights, and applications for
is a key milestone as it enables the
other government approvals have been
Company to provide samples to potential
lodged and are expected to be granted in
off-take Original Equipment Manufacturer
the coming months.
Securing a small source emissions
exemption from DAQ was of particular
significance as it means the Paradox
Lithium Project will not be subject to
Federal government EPA supervision or
oversight. We expect this will likely have a
positive impact on the proposed timeline
to production at Paradox, as the Utah
state government process and timeline
is comparatively shorter than the federal
(OEM) partners, including electric vehicle,
lithium-ion battery manufacturers, cathode
active material (CAD) manufacturers, to test
the performance of the Company’s lithium
carbonate. This is required as part of the
approval process that leads to qualification
as a supplier as well as binding supply
contract. The equipment and DLE process
that are used in the SDP replicates the DLE
process Anson plans to use at its proposed
lithium production plant.
5
Annual Report 2023 These developments allow us to continue
As we scale up our development of
to advance our discussions with offtake
the Projects, we have made valuable
partners and financial institutions.
appointments to our global teams in
Financial year 2024 is already shaping up
to be another transformational year for
the Company. In addition to the continued
progress on the FEED and acquisition
of land in Green River, in July 2023,
Anson announced the acquisition of the
strategically located Green Energy Lithium
Project, from Legacy Lithium Corp (Legacy).
The acquisition increases the Paradox
Lithium Project land holding by 8% to a total
of 231.35 km2. The Green Energy Lithium
Project has strong potential to deliver
an increase in the existing JORC Mineral
Resource estimate at Paradox, without the
need for further drilling. A resource update
is expected by the end of the calendar year.
I want to thank my fellow Board members
and all the global team at Anson Resources
and its subsidiary, A1 Lithium, for their hard
work and diligence over the 2023 financial
year. I’d particularly like to welcome new
hires, including senior leadership team
members Timothy Murray (Chief Operating
both Australia and USA. The breadth of
experience across all team members,
new and old, ensures Anson Resources is
well positioned to execute on its strategic
plans to commence construction and
enter commercial production in the
coming years.
Finally, thank you to our shareholders
for their continued support. We look
forward to updating you throughout the
year on what will be an even busier year
for Anson Resources and the continued
development of all our projects in the
2024 financial year.
Bruce Richardson
Officer) and Matthew Beattie (Chief Financial
Chairman and
Officer).
Chief Executive Officer
6
“The breadth of experience across all
team members, new and old, ensures
Anson Resources is well positioned to
execute on its strategic plans”
7
Annual Report 2023 1.2
Financial
While foreign exchange rates and cost pressures impacted 2023 financial
results, Anson Resources has continued to develop its Paradox Lithium
Project and is well positioned for the future.
In September 2022, we took steps to
We are well positioned to support our next
strengthen our balance sheet in order to
phase of growth with a strong balance
continue to develop our Paradox Lithium
sheet, holding cash and cash equivalents
Project, by raising $50 million through a
of $38.6 million at 30 June 2023.
share capital raise. The placement was
upsized to accommodate the significant
demand from investors, demonstrating the
confidence investors have in our business.
We remain very optimistic on the future
outlook of the lithium market. The global
lithium market is undersupplied, and the
supply chain is growing and is underpinned
We continued to invest in the expansion
by government legislation and industry
of our Paradox Lithium Project, with 11%
targets in support of a net zero future,
additional spend from the prior year.
through initiatives such as electric vehicles
This investment included finalisation of
to reduce carbon emissions. The Inflation
the completed DFS in September 2022,
Reduction Act in the US is a key enabler.
commencement of the FEED in May
2023 and investment into the Sample
Demonstration Plant (SDP) and process
innovation.
The lithium price has fluctuated during the
financial year, with prices hitting all-time
highs in the first half of the year after
exceptionally tight demand conditions,
We have made important appointments
followed by a slowdown in China which
to our teams globally which has seen our
impacted downstream demand and new
headcount increase by 150% from FY22 as
supplies continued to enter the market in
is to be expected as Anson moves towards
the second half of the year. The mid-to-
construction.
With our Paradox Lithium Project being
based in the USA, we are exposed to
long term price forecasts from analysts
continue to support prices well above the
marginal cost of production.
movements in foreign exchange. FY23
We remain confident that FY24 will see
has seen 2-year lows in the US dollar to
significant growth for the Company with
Australian dollar exchange rates. This has
the FEED expected to be completed,
negatively impacted our results for the year
targeted resource upgrades and
with the conversion rate being 7% lower
finalisation of Green River land and Legacy
than the prior year. We continue to assess
Lithium land acquisitions.
our treasury management to minimise our
exposure to foreign exchange.
8
“We have made important appointments
to our teams globally which has seen our
headcount increase by 150% from FY22
as is to be expected as company moves
towards construction”
Cash
Spend on Paradox
Lithium Project
$38.6m
Up 574%
$6.3m
Up 11%
USD Conversion Rate
Down 7%
Increase in No. of
Directors and Employees *
Up 150%
*excludes contractors
9
Annual Report 2023 1.3
Review of Operations
North American Lithium
Asset Portfolio
Anson’s North American lithium
asset portfolio consist of the
Paradox Lithium Project and the
newly acquired Green River Lithium
Project, both located in Utah, USA.
Paradox Lithium Project
Key focus areas during the year
were resource expansion, advancing
the Definitive Feasibility Study
(“DFS”) and Front End Engineering
and Design Study (“FEED”) for
the proposed lithium carbonate
processing plant for the Paradox
Lithium Project (“Paradox Project”).
Anson intends to use these
results to further discussions with
prospective off-take partners.
The DFS confirmed the Paradox
Project’s advanced potential to
become a major supplier of high
purity, battery grade Lithium
Carbonate into the US Electrical
Vehicle market. Initially producing
13,074 tonnes per annum of high
purity Lithium Carbonate over an
initial 10 years of project life, and
commercial levels, if no further
extraction wells were to come on-
line, up to a production life of 23
years.
Anson has been steadily unlocking
the lithium and bromine resource
potential of the Paradox basin by
Figure 1: Plan showing the location of Legacy Lithium Corp. Green Energy Lithium Project claims
Anson has successfully expanded
the Paradox Project area via staking
of new claims.
Subsequent to the end of the
financial year, Anson announced
the acquisition of the strategically
located Green Energy Lithium
Project, from Legacy Lithium Corp
(Legacy). The Green Energy Lithium
Project has strong potential to
JORC Mineral Resource estimate
at Paradox without the need for
further drilling. The Project area
contains 18 historic oil and gas
wells – and three of these wells have
recorded lithium values: 173ppm in
Clastic Zone 31, 134ppm in Clastic
claims that make up the Green
Energy Lithium Project from Legacy
Lithium Corp. for a consideration
of USD1 million in cash and
15,060,981 Ordinary Shares in the
Company (Consideration Shares).
The transaction is subject to Legacy
shareholder approval, in accordance
the requirements of corporation
laws and securities Laws applicable
to Legacy, as determined by counsel
to Legacy. There are no other
material conditions precedent
for the Agreement. The Project
acquisition increases the Paradox
Lithium Project land holding by 8%
to a total of 231.35 km2.
Location
then continuing producing at lower
deliver an increase in the existing
19 and 81ppm in the Mississippi
The location of the Project within
re-entering and sampling brine from
Units.
various historical oil and gas wells,
and strategic expansion of Paradox
Under the Agreement, Anson
Project area. Over the past year,
proposes to acquire all the placer
the Paradox Basin is shown in
Figure 2.
10
Figure 2: Location of the Paradox Brine site
11
Annual Report 2023 Definitive Feasibility Study
The DFS results confirm the
Global engineering group Worley
On 8 September 2022, Anson
announced the completion of the
DFS for Phase 1 of its Paradox
Project. Key financial highlights of
Phase 1 DFS are presented in Table
1 below (unless otherwise stated,
all cashflows are in US Dollars, are
undiscounted and are not subject to
inflation/escalation factors, and all
years are calendar years):
Paradox Project’s advanced
Group Inc. (Worley) was the
potential to become a major
lead consultant for the DFS
supplier of high purity, battery
and responsible for the Class-3
grade Lithium Carbonate into
Estimate of the above-ground
the US Electrical Vehicle market.
facilities. Capital and operating
Initially producing 13,074 tonnes
costs associated with Direct
per annum of high purity Lithium
Lithium Extraction technology were
Carbonate over an initial 10 years
provided by Anson’s technology
of project life, and then continuing
partner, Sunresin New Materials Co.
producing at lower commercial
Ltd (“Sunresin”).
levels, if no further extraction
wells were to come on-line, up to
a production life of 23 years.
Scenario
Base Case
NPV (7%)
$1,306m
Pre-Tax (USD)
IRR NPV (7%)
$922m
47%
Post-Tax (USD)
IRR
37%
Table 1: Paradox Project Phase 1 DFS Key financial highlight assumes a Lithium Carbonate price of US$19,800 per tonne.
12
Summary of Key DFS Parameters and Outcomes
Key outcomes and parameters of the DFS are presented in Table 2 below.
Production Parameters
Construction Period
Production Rate - Lithium Carbonate
Indicated Mineral Resource – Lithium Carbonate
Recovery – direct lithium extraction
Recovery – carbonation from lithium eluate
Key Financial Parameters
Capital Cost
C1 Operating Costs
Price – Lithium Carbonate
Revenue
Annual EBITDA Margin
Average annual EBITDA
Payback period
IRR Pre Tax
IRR Post Tax
NPV7 pre-tax (Base Case)
Table 2: Paradox Project key parameters and outcomes
Units
Years
Tonnes per annum
Contained (‘000t)
%
%
$US Million
US$ / t LCE
$US/tonne
$US Million
%
$US Million
Years
%
%
$US Million
Phase 1
2
Up to 13,074
239
91.5
88.6
495
4,368
Forecast Curve
5,080
69
153
2
47
37
1,306
13
Annual Report 2023 Mineral Resource Estimate
software using stratigraphic data
and Mississippian Units which
The Mineral Resource estimate
under the DFS was estimated
only for the brine aquifers of
Clastic Zones 17, 19, 29, 31, 33
and the Mississippian Units
within the Paradox Project area
and indicates 788,000 tonnes
of contained lithium carbonate
equivalent (LCE); 3,523,000 tonnes
of bromine. A summary table of
JORC Compliant Mineral Resource
Estimate is presented below in Table
3. Significant amounts of other
minerals including Boron (Boric
Acid, H3BO3) and Iodine (I2) have
also been estimated.
The average mean lithium
concentrations range from 11ppm
to 196ppm with a maximum
recorded concentration of 253ppm.
The bromine concentrations range
from 2,240ppm to 3,705ppm with a
maximum recorded concentration
of 5,041ppm. A 3D Model of the
Paradox Project was performed
with ARANZ Leapfrog modelling
from the 38 wells in the database.
contain the bine and are open in all
The model has been used to
directions, see Figure 3 below.
estimate recoverable brine within
the Paradox Project area using a
static model and takes no account
of pumping other than by the
application of effective porosity. The
3D model also shows the extent of
the clastic zones sampled to date
The conceptual hydrogeological
model for the brine aquifers
within the clastic zones has four
extensively fractured geological
units comprising of the following
interbedded units (from top to
bottom).
Figure 3: Paradox Project View showing surface topography, wells and modelled clastic zones
and Mississippian Units
Resource
Category
Indicated
Inferred
Resource
Indicated
Inferred
Resource
Indicated
Inferred
Resource
Total
Clastic Zone
31
31
17,19,29,33
17,19,29,33
Mississippian
Mississippian
Brine
Tonnes
(Mt)
Effective
Porosity
(%)
Li
(ppm)
Br
(ppm)
Contained
(‘000t)
Li2CO3
BR 2
48
77
125
178
205
383
117
379
496
1,005
15.1
17.1
14
14
7.6
7.6
172
181
178
83
89
86
187
187
187
3,043
2,540
2,723
3,377
3,386
3,382
3,793
3,793
3,793
44
75
118
79
97
176
116
377
493
788
145
196
341
603
695
1,298
444
1,439
1,883
3,523
Table 3: Paradox Project Mineral Resource Estimate.
14
• Anhydrite (upper layer);
between 350,000 mg/L and 410,000
that will be extracted will then be
• Black Shale;
• Dolomite; and
• Anhydrite (lower layer).
Anson has re-entered historic
oil wells to depths of up to 2,600
metres in the Paradox Project
area. The wells have an average
spacing of 1.6km (ranging between
1.3km and 3.0km). The bores have
mg/L. The brine is enriched with
processed into lithium carbonate
respect to lithium, bromine, and
(Li2CO3). The Mississippian units
other recoverable minerals.
have been re-entered in the Long
The sampling of the supersaturated
brines from these aquifers within
the Paradox Project area have
yielded concentrations of up to
253 ppm lithium and 5,041 ppm
bromine.
Canyon Unit 2 well only, so the
lithium resource is restricted to
the area surrounding the well. The
depths of each clastic zone for the
wells re-entered and sampled by
Anson are shown below in Table 4.
delineated aquifers containing
The planned 23-year production
hyper-saline brine with total
is supported by the lithium in the
dissolved solids (TDS) ranging
Indicated category. The lithium
Well
Gold Bar Unit 2
Cane Creek 32-1
Skyline Unit 1
Long Canyon Unit 2
Clastic Zone 17
To
From
1,897
1,891
1,687
1,683
1,652
1,642
1,679
1,665
Clastic Zone 19
To
From
1,942
1,930
1,754
1,744
1,706
1,695
1,737
1,725
Clastic Zone 29
To
From
2,145
2,140
1,897
1,891
1,884
1,878
1,914
1,909
Clastic Zone 31
From
To
2,165
2,158
1,943
1,940
1,903
1,896
1,934
1,926
Clastic Zone 33
To
From
1,955
1,958
1,970
1,973
Table 4: Clastic Zone depths for each horizon sampled by Anson during its exploration programs
15
Annual Report 2023 It should be noted that the Mineral
Resource is a static estimate; it
represents the volume of potentially
recoverable brine that is contained
within the defined aquifer taking
into account the Effective Porosity.
The Mineral Resource also takes no
account of recharge to the aquifers
within the clastic zones, which is a
modifying factor that may increase
brine-recovery from the units.
Subsequent to the completion of
DFS, Anson announced a major
upgrade to its JORC Code 2012
Mineral Resource estimate at its
Brine
Volume
(Ml3)
4,350
8,108
12,458
Brine
Tonnes
(Mt)
530
1,038
1,568
Li
(ppm)
123
125
124
Br
(ppm)
3,474
3,308
3,364
Contained
(‘000t)
Br2
1,840
3,434
5,275
LCE
346
692
1,038
Category
Indicated
Inferred
Resource
Table 5: Paradox Lithium Project Total JORC Mineral Resource upgraded estimation
Mineral Resource was estimated
Significant amounts of other
from Anson's drilling and sampling
minerals including Bromine
at the Cane Creek 32-1 well, and has
(Br2), Boron (Boric Acid, H3BO3)
been added to its Mineral Resource
and Iodine (I2) have also been
upgrade confirmed from drilling and
estimated. A breakdown of the
sampling at the Long Canyon Unit
Mineral Resources by aquifer is
2 well.
Paradox Project. The new Mineral
The new, upgraded Mineral
Resource is (see Table 5);
Resource represents a;
• 1,037,900 tonnes of LCE and
• 24% increase on the previously
5,274,900 tonnes of bromine,
reported Lithium Mineral
including;
Resource; including
• 31% increase in the Indicated
Resource on the previously
reported Lithium Mineral
Resource; and
•
Indicated Resource of
346,109 tonnes of LCE and
1,840,000 tonnes of bromine;
and
•
Inferred Resource of 691,800
tonnes of LCE and 3,434,900
tonnes of bromine
shown in Table 6. The Resource
does not take into account potential
replenishment of the brine zones.
Post the end of the financial period,
Anson completed a Numerical
Groundwater Flow Model for the
region covering both the Paradox
and Green River Lithium Projects.
The already created 3D geological
model was imported directly
into the flow modelling software
• 33% increase on the previously
to create the conceptual flow
reported Bromine Mineral
model, see Figure 4. Initial digital
Resource.
simulations have been completed to
confirm the known flow parameters
for the project area.
Horizon
CZ31
CZ31
CZ31 Resource
Other Clastics
Other Clastics
Other Clastics Resource
Mississippian
Mississippian
Mississippian Resource
Total Resource
Clastic Zone
31
31
Category
Indicated
Inferred
17, 19, 29, 33, 43, 45, 47, 49
17, 19, 29, 33, 43, 45, 47, 49
Indicated
Inferred
Indicated
Inferred
Brine
Tonnes
(Mt)
Li
Br
Contained
(‘000t)
(ppm)
(ppm)
LCE
Br2
47
77
124
179
453
632
304
508
812
1,568
173
182
178
83
98
94
138
141
141
3,054
2,543
2,736
3,378
3,102
3,181
3,596
3,606
3,371
44
74
118
79
236
315
224
381
605
1,038
144
195
339
604
1,406
2,010
1,092
1,834
2,926
5,275
Table 6: Paradox Lithium Project Mineral Resource Estimate for Clastic Zone 31, additional Clastic Zones and Mississippian Units
16
Simulations of lithium rich brine
being extracted from the Skyline
Unit 1 and Long Canyon Unit 2 wells
over a 5-year period shows that the
pressure remains constant after a
minimal drop when artesian flow
begins. The model was then run to
simulate artesian flowing conditions
for 5 years with pressure relief at
the ground surface at the two well
locations. The model shows the
constant high pressure over this
period will result in the continuation
of the artesian flow seen in the re-
entry drill programs.
The Numerical Groundwater flow
model will allow independent
consultants to use the digital
Figure 4: A plan showing the Conceptual Flow Model for Anson’s Lithium Projects.
Exploration Target
results as “Modifying Factors” which
The proposed acquisition of Green
are required to convert the JORC
Energy Lithium Project is expected
Indicated Resources into Reserves.
to result in an increase in the
Exploration Target of 14%, see
Table 7.
The Exploration Target figure is
conceptual in nature as there
has been insufficient exploration
undertaken on the project to
define a mineral resource for the
Leadville. It is uncertain that future
exploration will result in a mineral
resource.
Exploration Target
MIN
MAX
Density
1.27
1.27
Brine
Tonnes
(Mt)
Li
(ppm)
Li2CO3
(‘000t)
Br
(ppm)
310
350
108
200
1,294
3,096
2,000
3,000
Br
(‘000t)
4,811
8,734
Table 7: Exploration Target estimation for the combined Paradox Lithium Project and Legacy Lithium claims.
17
Annual Report 2023 Production and
Infrastructure
bromine chemicals, caustic soda
of fracturing and porosity which
(NaOH), boron (Boric Acid, H3BO3)
resulted in a high flow.
and iodine (I2) have not been
Production assumptions and
included and will be considered
mining plan
The DFS was prepared based on
in future engineering and profit
improvement studies.
The mining plan is that two main
wells will be drilled on each of
the pads, initially targeting Clastic
31 at approximately 6,500 feet.
production of up to 13,074 tonnes
Anson’s mining plan is based upon
Directional drilling will be used
per annum of lithium carbonate
the extremely high pressures and
to draw brine from other areas
during years 1 to 10 from extracting
the porosity of the rock units that
of the project and brought to the
brine from Clastic Zone 31 and the
are present in both the Paradox
surface at LCW1 and LCW2 wells.
Mississippian formation, before
Clastic Zones and the Mississippian
Once at the surface, the main well
progressing to Clastic Zones 19 and
units. The pressure in both is
pipelines from both well pads will be
29 during years 11 to 17, followed
approximately 4,500 psi throughout
joined together to a main transport
by Clastic Zones 17 and 33 during
the Project area, and along with the
pipeline to the processing plant.
years 18 to 23 when production
horizontal and vertical porosity of
volumes are estimated at 7,723
the units, the pressure is sufficient
tonnes per annum and 4,186 tonnes
to push the brine to the surface
without pumping. Two pads of
5 acres each, LCW 1 and LCW 2,
are located at the intersection of
two geological features, Robert’s
Rupture and the Cane Creek
Anticline, which delivers uniformly
high pressure at shallower depths
with a higher porosity resulting in
the artesian flow of the brines to the
surface. Anson recently conducted
an exploration and sampling
program of the brine at the Long
Canyon Unit 2 well which is in close
proximity to these two extraction
Once processed, the spent brine
will be re-injected into multiple
porous rock zones approximately
2,000 to 4,000 feet below surface.
These zones are close to the Cane
Creek Anticline which has resulted
in an increase in porosity and
fracturing during the formation
of this geological structure. Also,
a shallowing of the rock units, as
occurs at the brine extraction point,
reduces the size of the pumps
required for disposal.
Brine Well Field Facilities and
Pipelines
pads and confirmed a high degree
The Project involves approximately
0.44 miles of a gathering pipeline
from the LCW 1 well site to the
LCW 2 well site, and approximately
2.6 miles of mainline pipeline to
transport a saturated brine solution
to the proposed Lithium Carbonate
Plant. The construction of the
gathering and mainline pipeline
will also involve the installation of
shutdown valves, pressure control
valves, pigging facilities, and remote
per annum, respectively.
Consistent with Anson’s approach
to earlier engineering studies, in
year 1 it is expected that production
would be at 80% of the plant
design capacity to allow for plant
optimisation after commissioning.
Once complete, it is expected
that the plant would operate at its
designed capacity supported by
the brine extraction under its own
pressure.
Potential additional by-product
revenue from production of
18
valve control instrumentation for
Gas
the safe operation of the mainline
pipeline.
Propane/LPG is intended to be
transported to the Paradox Brine
There are already a considerable
Site via truckage and stored in
number of oil and gas wells and
bullets (reinforced, purpose-built
pipelines in the surrounding
tanks).
area. Many of Anson’s wells were
previously gas exploration and
production wells, repurposed for
brine well exploration. The main
brine pipeline will be routed from
the LCW 2 well site via a Horizontal
Directional Drill (HDD) bore under
the Dead Horse State Park. Once
outside of the State Park boundary,
the pipeline will be buried in a
trench with three feet of cover
and will connect to the Lithium
Carbonate Plant alongside an
existing unsealed road.
The pipeline route is shown in
Figure 5 below:
Figure 5: Paradox Lithium Project Infrastructure.
Anson will need to provide a circuit
breaker at this tie-in location and
a new 69 kV transmission line from
the interconnect to the Paradox
Brine Site. The Utility Interconnect
Circuit Breaker will be controlled by
RMP.
A hydro power energy recovery
study at Paradox Project was
conducted by Worley outside the
scope of the DFS, and was designed
to identify opportunities to:
• Utilise the hydraulic power of
brine flowing from the wells; and
• Utilise the energy generated by
brine being transported to the
production location, from the
top to the bottom of a canyon
- 330m (1,000 feet) - to the
processing plant.
Electricity
The local utility provider, Rocky
Mountain Power (RMP), owns a 69
kV transmission line feeding the
nearby Intrepid Potash Plant, and
this line runs approximately two
miles east of the Plant Site. RMP has
confirmed that 40 MW is available
from this line to support the Project.
RMP will provide upgrades to their
transmission line at the point of
interconnect to allow the Project
Site to tie into their system. The
tie in point to the RMP system will
be near the Intrepid Potash Plant.
The results of the study indicated
that small scale hydro power
units could be installed to capture
useable energy from both. The
study also identified opportunities
to; further reduce carbon emissions,
improve ESG credentials and reduce
operating costs of the Paradox
Project.
Previous engineering studies
indicated that the pressure of the
brine at a depth of approximately
2,000m (6,500 feet) was measured
and recorded as approximately
4,500psi, and was sufficient to
lift the brine to surface without
mechanical pumping. It also
indicated that the energy was not
exhausted at the top of the well,
as the pressure was measured at
1,700psi at this point. The Worley
19
Annual Report 2023 hydro power energy study identified
by the Wayne County Water
Spent Brine Disposal
that each of the recovery wells could
Conservancy Board, State of Utah
be connected to a small Pelton
in January 2023 (“Agreement”). The
Pit Turbine to extract the energy
Agreement will provide the supply
generated by the pressure and
of water required for the operation
create hydro power. Based on the
of the Company’s proposed lithium
study and available information, up
producing operation at the Paradox
to 4MW of power may be generated
Project. The Agreement is for an
using small Pelton Pit Turbines.
initial period of 23 years with an
option to extend for up to additional
Water
20 years.
The extraction and downstream
process that Anson has selected
for the Paradox Project has been
designed to re-cycle up to 80% of
the water that is introduced into
the process. This water will be
extracted from the Colorado River
and purified before being used in
the downstream process.
Anson has signed a sub-lease
agreement with Green River
Companies LLC which was approved
The potential for requirement
of pre-treatment water facilities
to process river water for use in
the Lithium Carbonate Plant will
be further assessed as part of
the FEED. While a water test was
completed during the preparation
of the DFS, further water tests over
different times will be conducted to
better inform the FEED of potential
water purification for the Lithium
Carbonate Plant.
Effluents being very close to the
chemical composition of the brine
that were originally extracted from
the Paradox Basin will be re-injected
into the basin without additional
treatment within the plant battery
limits.
Spent brine will be disposed back
into shallower horizons through
underground injection control
(UIC) wells. Anson will be initiating
permitting for Class V-1c UIC wells
with the Utah Division of Water
Quality (DWQ) which will allow
injection of spent brines back into
the formation they originate. Spent
brine will essentially have the same
characteristics as before processing
minus lithium, bromine (in possible
subsequent phases) and some of
the other transition metals captured
through filtration.
Anson CEO Bruce Richardson with Utah politicians visiting the Green River site with investors
Left to Right: Mr Bill Winfield County Commissioner Grand County, Mr Bruce Richardson Chairman and CEO Anson Resources,
Mr Phillip Lyman State Representative Utah House of Representatives, Bo Harrison Council Member City of Green River
20
Process Design and
Description
out the analysis for bromine
(via Schoniger Combustion) to
Midwest Microlab of Indianapolis,
Metallurgy and Laboratory Results
Indiana, and total metals by
Aquifer parameters were
determined by using three separate
techniques to determine the
Effective Porosity, including High
Pressure Mercury Injection (HPMI),
Gas Transport Model Analysis
(GTMA) and Scanning Electron
inductively coupled plasma –
atomic emission spectrometry
(ICP-AES) (EPA Method 200.7) for
lithium, boron, and magnesium
were subcontracted to Asset
Laboratories of Las Vegas, Nevada.
Direct Lithium Extraction (DLE) -
Microscopy (SEM) analysis. This test
General Overview
work was carried out by Core Labs
and Stratum Reservoirs in the USA.
The adsorption method is utilised to
separate lithium from magnesium,
Brine chemistry was undertaken
sodium and other impurities from
by four different laboratories
the brine. The lithium concentration
assaying for multiple elements
in the eluate increases through a
utilising different methodologies.
series of filtration and nanofiltration
SGS utilized EPA 6010B (ICP-AES)
processes to further remove
for analysis of cations, and a variety
impurities. Throughout these
of standard methods for analysis of
processes, water is recovered and
anions. WETLAB completed density
recycled for reuse using Reverse
analysis, hydrocarbon analyses,
Osmosis (RO) and nanofiltration
and anions by ion chromatography
technologies. The DLE process is
(EPA Method 300.0) for bromide,
designed and optimized to recycle
chloride, fluoride, and sulphate.
process water to limit the intake of
WETLAB then subcontracted
added water.
Magnesium is removed within
the membrane system using
resin. The solution is then further
concentrated by RO for boron
removal. In the first step, coarse
boron is removed by ion exchange.
Mechanical Vapor Recompression
(MVR) equipment is then used to
further concentrate the eluate. Ion
exchange resins are used again to
remove the finer boron from the
MVR concentrated solution.
Lithium carbonate is obtained
through a process of lithium
precipitation involving sodium
carbonate. From there,
refinement occurs from drying
and demagnetization to produce
battery-grade lithium carbonate.
More specific descriptions of each
of the key processes for the Direct
Lithium Extraction Process are
provided in Figure 6 below.
Figure 6: Direct Lithium Extraction Process
21
Annual Report 2023 Water from the Colorado River will
Lithium Precipitation
Infrastructure
be the water source for the lithium
recovery and purification process
at the Paradox Project. The process
uses large amounts of water. The
location of the Project next to the
Colorado River provides a strategic
advantage over other projects were
water needs to be transported from
remote locations or created by
other processes.
The precipitation concentration
The is located in close proximity
process is the process for preparing
to all existing major utilities and
lithium carbonate. It uses a
transportation infrastructure.
saturated solution of sodium
The utilities include natural gas
carbonate to precipitate lithium in
(Dominion) and high voltage
a lithium chloride solution to form
powerlines (Rocky Mountain
the lithium carbonate product.
Power) which pass close to the
Lithium carbonate products with
production site and will be used in
a purity content of above 99% can
the production facility. In addition,
be obtained with further after
there are interstate highways
The results from the test work of
precipitation recovery processes
(i70) and a rail link (Union Pacific)
suitable for transporting the
products across the USA as well
as to Pacific ports including Long
Beach which can be reached in
approximately 11 hours. There is
also a domestic airport which is
linked to the Denver International
Airport.
Anson has opened discussions with
infrastructure providers in the area
and initial engineering studies have
already commenced with some of
these companies to secure supply.
the river sample have been highly
and washing.
positive. The results classify the
water as ‘fresh water’ with low
levels of salts and no detection of
deleterious minerals. This outcome
indicates that the only intervention
required will be a simple reverse
osmosis (RO) process to remove the
Scheduled Downtime
Scheduled downtime and durations,
such as planned maintenance, will
be minimized. The initial targets are
as follows:
salts, to make the water suitable for
1. Full Emergency Shutdown (ESD)
use in the DLE circuit.
testing every six months.
Adsorption
The adsorption process is a low-
cost, organic, and environmental-
friendly process to extract crude
2. Monthly sequential changeover
of the membranes, or as needed,
to achieve targeted throughput.
This equates to approximately 15
days per year of downtime.
lithium chloride from raw brine.
3. Five days of maintenance
The adsorption process extracts
shutdown per quarter. This
lithium from the brine containing
equates to approximately 20
other minerals such as magnesium
days per year of downtime.
and sodium. The resin adsorbs the
lithium in the brine. The lithium
adsorbed in the resin is desorbed
with a demineralised water solvent
to produce a lithium chloride eluate
with lower levels of impurities for
further refinement.
All equipment is expected to
be designed for a rigorous
maintenance schedule due to
the corrosivity of the processing
materials. Therefore, the overall
target for days of operation is
330 days per year. It is assumed
that this would be achieved in the
second year of operation.
22
Permitting
Institutional Trust & Lands
Additional permits will be required
Anson has conducted research
into the permits that are required
to take the Project into production
and has opened discussions
regarding the approval processes
with potential consultants that
would provide assistance with
obtaining these approvals and the
relevant government agencies.
The extraction, transportation,
processing and disposal of brine
are all intended to be conducted on
ground administered by the State
of Utah. Anson has been carrying
out this research and has received
several of the permits required.
Administration (SITLA) to be leases
from other government agencies
for the purposes of oil and gas
including an a Stormwater
processing plants, compressor
Management Permit, a Construction
stations, wastewater disposal
Permit, Industrial General Permit,
facilities, mining or extraction
an Underground Injection Control
facilities, manufacturing facilities,
Permit from the Government
and other industrial uses (Utah
of Utah as well as a Height
Administrative Code, 2019c).
Variance Permit and a Conditional
Anson, through its subsidiary
A1 Lithium, has been granted
two granted Special Use Lease
Applications (SULA) by SITLA
and has three additional SULA
Usage Permit from the County
government. There is no known
inhibitor to applications for these
permits being approval by the
relevant government agencies.
leases under review for the
A list of the permits that are
transportation, processing
required can be found on
and disposal of the brine to be
announcement dated 8
extracted. In addition, Anson has
September 2022.
The Utah Administrative Code
been granted the right to extract
R850-30 allows for the leasing of
mineral enriched brine, including
lands administered by Schools
brine from both SITLA and the BLM.
23
Annual Report 2023 Lithium Market and Product
Marketing Strategy
Lithium Demand
Benchmark Minerals Intelligence
(“Benchmark”), a leading
independent EV metals forecasting
and market reporting agency,
estimates demand for EV’s to climb
to 17% in 2023, up from 13% in
2022, as global EV sales continue to
accelerate. This figure is expected
to climb to 25% by 2025.
Over the long term, Benchmark
forecast Lithium EV demand to
increase to 83% in 2030 and 94%
in 2035. Benchmark forecast the
period from 2030-2033 and 2033-
2036 to likely be characterized by
intense undersupply. In addition,
the market is likely to re-enter a
deficit position in 2026.
The Paradox Project will produce
battery grade lithium carbonate
for use in domestic manufacture
of Li-ion EV batteries. Benchmark
estimate 50% of the lithium battery
demand to comprise lithium
carbonate as illustrated in Chart 1
below.
24
Graph 1 Global EV Penetration rate forecast. Source - Benchmark Minerals Intelligence.
Graph 2 Forecast Lithium Carbonate demand (left); Lithium Carbonate price forecast (right).
Source – Benchmark Minerals Intelligence.
Chart 1 Global EV Penetration rate forecast
Critical Mineral Status – US
processing in the EV battery supply
3. To qualify for the second $3,750
Government Initiatives
chain. Particularly, the IRA specifies
credit, a certain percentage
Lithium is designated as a critical
the following:
mineral by the United States
1. Two-part credits on certain
Geological Survey (USGS) and
percentage of materials
accordingly the US Government
used in a vehicle’s batteries
has taken a number of initiatives to
being extracted, processed,
support the localisation of the EV
manufactured and/or assembled
battery supply chain and promote
in the US or in certain US-allied
the development of domestic
countries.
critical mineral projects.
2. To qualify for the first $3,750
The Biden Administration, United
States Federal government, has
recently passed into law the
Inflation Reduction Act (IRA). This
act seeks to improve electric vehicle
penetration and boosting local
sourcing of raw materials as well as
credit, a percentage of the value
of applicable critical minerals
contained in a vehicle’s batteries
must be extracted or processed
in the US or in a country with
which the US has a free trade
agreement or must have been
recycled in North America.
Paradox
Lithium
Project
Chart 2 US States with current & planned Gigafactories by 2030 (shared in blue).
Source - Benchmark Minerals Intelligence.
of the value of the battery
components in an EV must be
manufactured or assembled
in North America; applicable
percentages increase from 50
percent prior to 2024 to 100
percent after 2028.
4. Further, after calendar year
2024, a clean vehicle will not
qualify for the tax credit if it
contains any critical minerals
that were “extracted, processed,
or recycled by a foreign entity of
concern” – including companies
owned by, controlled by or
subject to the jurisdiction of
the government of the People’s
Republic of China.
The growing lithium resource at
the Paradox Project, rapid pace
of project development and US
government policy initiatives such
as the IRA, support Anson’s strategy
of enabling a US based EV battery
supply chain. Anson continues to
receive interest from a wide range
of international and US based
offtake parties for lithium carbonate
to be produced at the Paradox
Project.
25
Annual Report 2023 Capital Costs
Operating Costs
The capital cost estimate is accurate
Costs are summarized below:
Lithium Carbonate Production
(steady state)
OPEX
Raw materials
Freight on raw materials
Electricity
Gas
Gas trucking
Maintenance (1.14% at 50%)
Labour
Well disposal fee
Solid waste disposal and general costs
Purchase of water
Overheads - SULA lease
By-products (none assumed in Stage 1)
OPEX after by-product sales
13,074
$ Per Tonne
1,188
95
589
460
37
265
518
1,197
6
10
4
4,368
-
4,368
USD $
15,529,200
1,242,336
7,695,060
6,012,320
480,986
3,465,890
6,775,351
15,648,394
72,300
129,894
50,000
57,101,731
-
57,101,731
to within +25%/-15% and includes all
material and installation labour for
civil, structural, mechanical, piping,
electrical and instrumentation, and
plant commissioning.
Capital Item
Direct Capital Costs
Indirect Capital Costs
Other Costs
Free-issue from Owner
Production and
Disposal Wells
MTO allowances
Project Capex
Owners Costs
Total Capital Costs
USD $m
185.2
126.0
17.8
90.0
22.0
22.8
463.8
31.3
495.1
For the DFS, Worley has
estimated a project capex
contingency of $27.8m, which
is included in the above Total
Capital Costs. The next stage of
FEED will provide further updates
Benchmarking – Global Cost Curve
Paradox
Lithium
Project
Graph 3 Global Lithium Carbonate Production Cost Curve 2023. Source – Benchmark Minerals Intelligence.
26
Discounted Cash Flow
to yield a post-tax DCF. Tax and
Project Funding
A discounted cash flow (DCF) was
derived by estimating net revenues,
subtracting the operating costs
to yield the EBITDA, and then
subtracting capital costs to arrive
Investment incentives potentially
applicable to the project were
not considered in the current
modelling. The project cash flows
are summarized in Table 8 below.
Anson plans to fund the Paradox
Lithium Project capital requirements
through a mix of conventional
equity and project finance. However,
additional funding options such
at a pre-tax DCF.
For material economic assumptions
as offtake funding or strategic
Taxes were calculated accounting
for deductions, and then applied
September 2022.
and sensitivities please refer to
investments may be considered at
ASX announcement dated 8
the time of final investment decision
Scenario
Pre-Tax (USD)
Post-Tax (USD)
NPV (7%)
IRR NPV (7%)
Base Case
$1,306m
47%
$922m
IRR
37%
Table 8: Paradox Lithium Project Results of Economic Analysis
and based on conditions of the
equity capital markets and debt
capital markets at the time.
Anson has engaged leading
independent corporate advisory
firm BurnVoir Corporate Finance
to undertake a competitive debt
funding process with reputable
finance lenders.
Debt process planning has been
ongoing since the start of the DFS.
Modelling of the Paradox Lithium
Project Stage 1 demonstrates a debt
carrying capacity that is supportive
of project financing. A number of
factors make the Project attractive
for project financing, including:
• Tier 1 jurisdiction of the Project
• Strong ESG credentials and
contribution to EV transition
• High project margins and strong
lithium price outlook.
It is anticipated that debt funding
agreements will be finalised in
advance of Final Investment
Decision. Anson and its financial
advisor BurnVoir Corporate Finance
have commenced discussions with
financiers and will seek to progress
these discussions in line with
expected Final Investment Decision.
27
Annual Report 2023 Development Schedule
The initial lithium carbonate
Anson remains committed to
Phase 1 – Lithium Development
sample demonstration plant located
bromine resource and anticipate
samples have been produced from a
the development of the vast
Post the completion of the DFS,
Anson has entered a period of rapid
development and value creation
as it progresses the advanced
development of the Project.
Worley has been appointed to
undertake the FEED Study at its
at Anson’s newly established
the construction of a bromine
Lithium Innovation Centre (LIC) in
production facility from free
Florida, USA. The equipment and
cash flows generated from the
DLE process replicates Sunresin’s
production of lithium carbonate.
DLE process Anson plans to use
at its proposed lithium production
plant at the Paradox Project.
Studies and work completed
to date indicate to significant
benefits of this approach to Anson
shareholders. The lithium and
bromine production facilities
are anticipated to share project
infrastructure, reducing the
incremental capital spend required
for a bromine plant.
Bromine is a key component of
the rapidly developing stationary
energy storage battery market. The
planned bromine development will
aim to produce bromine and other
bromine derivative products for use
in zinc-bromine batteries among
The brine at Paradox basin is rich
other industrial applications.
Paradox Project, which will build
Anson proposes to gradually
on the Paradox Project’s robust
increase production from the
DFS completed in 2022. The FEED
demonstration plant to meet
Study is a pivotal next step in
requests from potential off-take
Anson’s plans for the construction
partners.
of a lithium carbonate processing
plant, with a production capacity
of a 13,000tpa lithium carbonate
equivalent (LCE). The FEED Study is
progressing and is expected to be
completed in early 2024.
Post the reporting period, Anson
produced its first sample battery-
grade lithium carbonate product
Phase 2 – Lithium Expansion and
Bromine Development
The plant is designed to be modular
and thus can be scaled up to
increase production capacity post
the initial 13,074 tpa production
capacity.
from brines from its Paradox
in a number of minerals alongside
Project, utilising the flowsheet
Lithium. These minerals include
designed by its DLE partner.
Iodine, Boron and Bromine among
This has enabled the Company
others.
to advance its lithium carbonate
A number of bromine production
off-take and supply discussions,
facilities around the world
and provide samples to potential
successfully produce bromine and
off-take Original Equipment
related compounds from resources
Manufacturer (OEM) partners,
with lower concentrations of
including electric vehicle and
bromine than those present in the
lithium-ion battery manufacturers.
Paradox basin.
28
Green River Lithium Project
Anson Resources completed the
staking of the new Green River
Lithium Project comprising a total
of 1,251 placer claims for an area
of 10,620 hectares, see Figure 7, at
Green River, Utah.
The claims overlay many historically
plugged and abandoned oil and gas
wells which can be re-entered at a
much lower cost than drilling new
holes. A lot of these wells have been
drilled into the thick Mississippian
units. This will enable sampling of
the brines which have already been
recorded in the Mississippian units
and the numerous clastic zones.
The project area is suitable for both
the extraction of the brine and
disposal of the waste brine back
down into a suitable formation if the
exploration program is successful in
proving up a lithium JORC resource.
This has been shown in historical
Drill Stem Tests (DST) in which
brines have flowed up the tubing. In
addition, some of these wells have
already been used as disposal wells.
Anson has also signed a letter of
intent (LOI) to enter into a Purchase
and Sale Agreement for the
Figure 7: Plan showing the newly pegged claims within the Green River Lithium Project
strategic acquisition of 0.568km2 of
privately owned, industrial use land
at its Green River Lithium Project
in the Paradox Basin, in south-
eastern Utah, USA. This acquisition
completed in September 2023.
The new landholding is located less
than 1km from the Green River
project area. Anson plans to utilise
the new site as the location for
its core asset, the nearby Paradox
the future lithium extraction and
Project. Anson will deploy the same
production facility for its proposed
highly successful strategy used at
lithium producing operation at the
Paradox to time-and-cost effectively
Green River Project.
Anson proposes to explore and
develop the Green River Project in
parallel with the development of
define new lithium-brine JORC
Resources at Green River via re-
entering existing oil wells to define
new lithium-brine resources.
29
Annual Report 2023 The Bull Nickel-Copper-PGE
Project – Western Australia
The Bull Project is located only
35km from Perth abutting Chalice
Gold Mines Limited’s (Chalice) (ASX:
CHN) tenements, and is 20km
south west along strike of Chalice’s
high-grade Julimar Ni-Cu-PGE
discovery (Figure 8). Anson also
pegged an additional tenement
that abuts the Bull Project area to
the south, ELA70/5619.
Negotiations continued with the 3
landowners in which exploration
programs are planned. These
negotiations are in the final stages
of completion. Priority drill targets
have been defined based on
geophysical surveys, geological
mapping and rock chip sampling
programs. Stage 1 drilling consist of
18 holes focusing on priority areas
1, 2 and 3, and will be drilled to a
depth of 200m from west to east at
a 600 angle to maximize potential
intersection of the targeted
anomalous ultramafic units, See
Figure 9.
30
Figure 8: TMI image showing the location of the Bull Project and the associated
magnetic signatures in relation to the Julimar discovery
Figure 9: Drone Mage RTP image at the Bull Project showing proposed drillhole locations
31
Annual Report 2023 Yellow Cat Project –
Anson is sourcing quotes
exploration program consisting
from contractors to carry out
of approximately 25 drill holes
environmental and cultural surveys
to be approved. The aim of the
required to get approvals for
exploration programs is to confirm
exploration drilling programs. Only
existing drilling results and to
a small diamond drill rig would
extend the known mineralisation
be required minimising ground
along strike and down dip, see
disturbance which will allow an
Figure 10.
Utah, USA
The Yellow Cat Project is located 30
km north of Moab, in the Thompson
District, Grand County Utah. There
are two separate areas; the Yellow
Cat claims and the Yellow Cat West
claims. The Yellow Cat Project is
considered prospective for the
development of both uranium
and vanadium with Anson's two
exploration sampling programs and
historical uranium and vanadium
production. The project is located in
a region that is increasingly sought-
after by companies exploring for
uranium, supported by the recent
increase in uranium prices.
High grade assay values of up to
87,600ppm uranium (U) (10.33%
U3O8) and 143,500ppm vanadium
(V) (25.61% V2O5) were reported.
A summary of the results of the
elemental values and the more
common metal oxides are shown in
Table 9 below and the locations can
be seen in Figure 10.
Figure 10: Plan showing the Yellow Cat claims and the inferred mineralised trend to follow up
Location ID
YC2
Northing
4,299,798
Easting
627,312
YC3
YC4
YC8
YC10
YC11
4,301,989
4,299,789
4,300,420
4,302,105
4,302,017
634,173
627,312
627,803
634,215
633,665
Sample ID
YC20007
YC20008
YC20010
YC20004
YC20014
YC20022
YC20006
YC20012
U3O8 (%)
6.65
10.33
0.94
3.27
1.43
1.07
0.86
0.05
V 2O5 (%) Comments
4.69 Exposed mineralisation, UG workings
2.46
23.92
5.87 Exposed mineralisation, UG workings
1.77 Ore pad grab samples
10.16 Exposed mineralisation, UG workings
14.57 Exposed mineralisation, UG workings
25.61 Exposed mineralisation, UG workings
Table 9: Selected assay results for Uranium and Vanadium at Yellow Cat.
Notes:
1. Underground sample location coordinates are based on location of the closest underground adit. Ore pad grad samples location coordinates
are for the ore pad sampled.
2. Conversion of uranium (U) to uranium oxide (U3O8) is by factor of 1.179.
3. Conversion of vanadium (V) to vanadium oxide (V 2O5) is by a factor of 1.785.
32
Ajana Project – Western
The Mary Springs tenement
Ag rich mineralisation have been
Australia
The Ajana Project is located in
Northampton, Western Australia,
a proven and established mining
province for zinc, lead and silver.
The Ajana Project is adjacent to
the North West Coastal Highway
and 130km north of Geraldton.
Historical exploration in the area
has concentrated on the search for
lead and zinc deposits. Anson has
excised 12 blocks from the E66/89
tenement due to regulations
relating to tenements if applying
for an extension after 5 years.
The prospective ground on the
tenements E66/89 and E66/94 is
dominated by the Northampton
Metamorphic Complex.
Historical exploration in the area
has concentrated on the search for
lead and zinc deposits. The Ajana
Project contains several historic
copper, lead and silver producing
mines that date back to 1850.
contains a JORC 2012 Mineral
intersected in recent drilling but
Resource estimate which is
were not included in modelling
summarised in Table 10. The global
the resource. Further drilling may
Indicated and Inferred Resource
enable the zinc, copper and silver
estimate is 390,000 tonnes grading
bearing zones to be modelled as
at 6.5% Pb. Zones of Pb-Zn-Cu-
part of a future resource.
Figure 11: Plan showing the areas approved for exploration in the submitted POW’s and cleared
in the heritage survey (green) and local prospect locations.
Category
+ 1% Pb
Indicated
BCM Tonnes
240,000
80,000
% Pb
6.6
Inferred
BCM Tonnes
150,000
50,000
Total
% Pb
6.2
BCM Tonnes
390,000
130,000
% Pb
6.5
Table 10: Mary Springs Mineral Resource Estimate, JORC 2012
33
Annual Report 2023 Anson has commenced preparation
The proposed three exploration
Most of the known prospects at
to drill prospects at Ajana in the
programs will consist of reverse
Ajana have been identified along
coming month. These prospects
circulation (RC) drilling under and
the north-east trending dolerite
have POW’s already approved
along strike of existing pits and
dykes and considered to be “in
by the Department of Mines,
mine shafts in the areas approved
echelon” type (parallel formation)
Industry Regulation and Safety
for exploration in the POW’s.
deposits, similar to the Mary Springs
(DMIRS). Heritage surveys have
been completed, which included
archaeological and ethnographical
work area clearance, at the
proposed sites for the exploration
programs to be carried out,
see Figure 11. The survey was
completed over the Surprise, Ethel
Maud and Block 1 prospect areas.
Anson is planning a 1,990m reverse
circulation drilling program at the
Ajana Project and have appointed
a drilling company to carry out
the program in the next quarter. A
local contractor will be used for the
clearance work to prepare access
and drill sites prior to the drilling
programs commencing.
mine. However, historic small
mining operations also identified a
number of prospects which were
located between these dykes that
were crosscut by faults which may
increase the grade of mineralisation
as has occurred with the zinc at
Ethel Maude, see Table 11.
Target Area
Geraldine
Surprise
Mine
Ethel Maude
Surprise
Zn (%)
43.0
Not Assayed
Pb (%)
11.3
10.5
Cu (%)
NA
Ag (g/t)
6.5
Not Assayed Not Assayed
Comments
Samples from shafts
Production figures
Grades
Table 11: Table showing the target areas and grades of minerals previously sampled.
34
Hooley Wells Nickel-Cobalt
of approximately 1:10,000. A
Once the processing of the
Laterite – Western Australia
comprehensive interpretation of
aeromagnetic data is completed,
The Hooley Well Nickel-Cobalt
Laterite Project is located 800km
north of Perth and 300km north-
east of Geraldton in Western
Australia consisting of three
structure.
the aeromagnetic data includes
processing of historical radiometric
all the relevant geoscientific
surveys will be carried out to
information, allowing for the
target Rare Earth Element (REE)
mapping of lithologies and
mineralisation due to a REE
tenements E9/2218, E9/2219 and
This work involves:
E9/2462. Tenements E9/2218 and
E9/2219 contain historical shallow
•
Interpretation of:
drilling which has intersected nickel
• Domains of magnetic and
and cobalt laterites. There are also
radiometric anomalism,
possible primary nickel sulphides
(identified by IP response) at depth.
• Delineation of magnetic
and radiometric trends,
Anson had previously flown a drone
•
Interpretation and
Resource being proved up east of
the Hooley Well tenements.
REE mineralisation has also been
recorded in drill holes that abut
the western side of the Hooley
Well tenements. The historical
ternary imagery over Hooley Well is
similar to that of Krakatoa’s mineral
resource.
aeromagnetic survey over the
E09/2218 and 2219 tenements on a
line spacing of 50m and at a height
classification of structures
On completion of the aeromagnetic
(lineaments, faults and
and radiometric interpretations,
folds), and
Anson plans to submit several POW
of 25m. With the completion of the
• Delineation and
processing of the aeromagnetic
data obtained from the drone
surveys, further interpretation of
the data has begun.
Interpretation at 1:20,000 is being
completed over the surveyed area
and interrogated at a closer scale
interpretation of lithology
and stratigraphic
relationships.
applications to carry out both air-
core (AC) and reverse circulation
(RC) drilling programs across the
high priority targets identified.
Figure 12: TMI1VD image of the Hooley Well tenements E9/2218 and E9/2219
35
Annual Report 2023 Forward Looking Statements:
Competent Person’s
Statements regarding plans with
Statement 2: The information
respect to Anson’s mineral projects
contained in this ASX release
are forward looking statements.
relating to Exploration Results
There can be no assurance that
and Mineral Resource Estimates
Anson’s plans for development of its
has been prepared by Mr Richard
projects will proceed as expected
Maddocks, MSc in Mineral
and there can be no assurance
Economics, BSc in Geology and
that Anson will be able to confirm
Grad Dip in Applied Finance.
the presence of mineral deposits,
Mr Maddocks is a Fellow of the
that mineralisation may prove to be
Australasian Institute of Mining
economic or that a project will be
and Metallurgy (111714) with
developed.
Competent Person’s
Statement 1: The information
in this announcement that
relates to exploration results,
exploration targets, Mineral
Resrouces and geology is based
on information compiled and/
or reviewed by Mr Greg Knox, a
member in good standing of the
Australasian Institute of Mining and
over 30 years of experience. Mr
Maddocks has sufficient experience
that is relevant to the style of
mineralisation and type of deposit
under consideration and to the
activity being undertaken to
qualify as a competent person as
defined in the 2012 edition of the
Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves.
Metallurgy. Mr Knox is a geologist
Mr Maddocks is an independent
on 12 June 2019, ‘Anson Estimates
Maiden JORC Mineral Resource’
created on 17 June 2019, ‘Anson
Re-enters Skyline Well to Increase
Br-Li Resource’ created on 19
September 2019, ‘Anson Confirms
Li, Br for Additional Clastic Zones’
created on 23 October 2019 and
all are available to view on the
ASX website under the ticker code
ASN. Anson confirms that it is not
aware of any new information or
data that materially affects the
information included in the original
market announcement and, in
the case of estimates of Mineral
Resources or Ore Reserves, that
all material assumptions and
technical parameters underpinning
the estimates in the relevant
market announcement continue
to apply and have not materially
changed. Anson confirms that the
form and context in which the
Competent Person’s findings are
who has sufficient experience
consultant to Anson Resources
presented have not been materially
which is relevant to the style of
Ltd. Mr Maddocks consents to the
modified from the original market
mineralisation under consideration
inclusion in this announcement of
announcement.
and to the activity being undertaken
this information in the form and
to qualify as a “Competent Person”,
context in which it appears. The
as defined in the 2012 Edition of
information in this announcement
the Australasian Code for Reporting
is an accurate representation of the
of Exploration Results, Mineral
available data from exploration at
Resources and Ore Reserves and
the Paradox Lithium Project.
Engineering Accuracy: The
Definitive Feasibility Study (DFS)
has been prepared by Worley
according to the Association for the
Advancement of Cost Engineering
(AACE) Class III standard. The Board
Information is extracted from
of Directors, Bruce Richardson,
reports entitled ‘Anson Obtains a
Greg Knox and Michael van Uffelen,
Lithium Grade of 235ppm at Long
as well as Worley consider to this to
Canyon No 2’ created on 1 April
be a DFS.
2019, ‘Anson Estimates Exploration
Target For Additional Zones’ created
consents to the inclusion in this
report of the matters based on
information in the form and context
in which they appear. Mr Knox is a
director of Anson and a consultant
to Anson.
36
Risks
The Company’s Board identifies, monitors and manages material risks to the business. The Board is responsible for
overseeing the establishment of and approving Anson’s risk management framework including its strategy, policies,
procedures and systems. A description of the nature of the material risks and how such risks are managed is set out
below. This list is neither exhaustive nor in order of importance.
Risk
Risk Description
How we are managing this risk
Exploration and
development risk
Commodity exploration is speculative in nature and
not all exploration activity will lead to the discovery
of economic deposits, and even fewer are ultimately
developed into producing mines.
Reserves and
resources risks
Estimating reserves and resources is subject to significant
uncertainties associated with technical data and
interpretation of that data, analysis of drilling results,
assumptions of future commodity prices and business
assumptions regarding development and operating costs.
Estimates may alter significantly or become more
uncertain when new information becomes available
due to, for example, additional drilling or production
performance over the life of the field. Downward revision
of reserves and resources estimates may adversely affect
the Company’s operational and financial performance.
Anson utilises multiple internal and external evaluation
procedures including strategic planning, scoping,
budgeting, forecasting and stakeholder engagement
to evaluate exploration prospects as part of managing
exploration risks.
Estimates are compiled by experienced and appropriately
qualified personnel and subsequently reported by
Competent Persons under the JORC Code. Anson also
engages relevant independent, external experts, where
determined appropriate, with significant experience in
the industry to provide further accuracy on reporting
Reserves and Resources.
Foreign exchange
and commodity
price risk
Financial results of the Group are reported in Australian
dollar and commodity prices are principally based on US
dollar. Volatility in lithium prices creates future revenue
uncertainty.
Anson conducts various risk assessments and scenario
planning in relation to fluctuating lithium prices
and foreign exchange rates. This includes careful
management of forecast cash flows.
Operational Safety
Operations material safety event at site or in transit.
Permit risk
The Company is required to comply with a range of laws
to retain its permits and periodically renew them.
Market changes in
the lithium industry
The demand for lithium is dependent on the use of
lithium in end markets, and the general economic
conditions.
All activities conducted by the Company continue to have
a strong focus on safe exploration and development.
Anson conducts regular risk assessments.
Anson has received or lodged necessary approvals for the
Paradox Lithium project during the year. However, there
can be no guarantee that approvals and permits required
to commence construction of future prospects will be
obtained.
Anson manages its tenure processes and monitors the
conditions of each permit to ensure they are complied
with, in order to reduce the risk of losing tenure.
The Company has a clear understanding of market trends
and navigates risks concerning market changes.
Access to Funding
for Operations Risks
Ability to obtain funding as and when required on
commercially acceptable terms.
Anson has no operating revenue as is typical for
exploration companies with no cash generating business.
Staffing and Key
Management
Personnel
Failure to effectively attract, train and retain employees
with required skillset to implement business strategy in
each area where we operate.
Anson has internal controls in place to manage its cash
flow and various commercial strategies to provide access
to funding.
The management of talent is core to Anson success and
has been a key priority for management and the board,
while the availability and retention of skilled personnel
in the current market continues to be highly competitive.
Anson has recently made several management
appointments including CFO and COO. The company
provides competitive and fair total remuneration
packages, a safe workplace, and a commitment to strong
corporate values.
37
Annual Report 2023 2.0 Directors’ Report
Your Directors present their report, together with
the Consolidated Financial Statements of Anson
Resources Limited (the “Company” or “Anson”)
and its controlled entities (the “Group”) for the
year ended 30 June 2023.
38
39
Annual Report 2023 2.1
Directors
The names of Directors who held office during or since the end of the
financial year and until the date of this report are as follows. Directors
were in office for this entire financial year unless otherwise stated.
Bruce Andrew Richardson,
Peter (Greg) Knox,
B.A (Hons)
Executive Chairman and CEO
(Director since 30 April 2009)
B.Sc (Geology)
Executive Director
(Director since 22 September 2011)
Mr Richardson has a proven track record
Mr Knox is a qualified geologist with
with over 15 years in exploration, mining
over 30 years of experience in the
and production in public and private
resources industry in exploration, mine
companies in various management
development and mining operations. He
positions, and over 30 years of international
has worked on projects from grass-roots
business experience, with a particular focus
exploration through to mine development
on China. He has raised over $220 million
and production and has extensive
of investment in mining projects.
experience in gold, base metals and iron
He is fluent in Mandarin and has 10
for several ASX listed companies.
years’ experience in the public sector
Directorships in other listed entities in
having worked as an Australian Trade
the past 3 years: None.
Commissioner in the Australian Embassy in
Beijing, with responsibility for the resources
portfolio, and Trade Development Director,
Australian Commerce & Industry Office
Taipei, Taiwan. In 2006 and 2007 Mr
Richardson worked for the Government
of Western Australia as Manager China,
Michael van Uffelen,
B.Comm, CA
Non-executive Director
(Director since 18 October 2018)
Department of Industry and Resources
Mr van Uffelen is a Chartered Accountant
developing business and political
and experienced Director, CFO and
relationships with China.
Company Secretary. He has more than 30
Directorships in other listed entities in the
past 3 years: None.
years’ experience gained from working with
major accounting firms, investment banks
and public companies both in Australia and
internationally.
Directorships in other listed entities in the
past 3 years:
• Nanoveu Limited (14 February 2018 to
30 June 2023)
• Tian Poh Resources Limited (31 May
2015 to 27 May 2022)
40
Directors’ interests in securities of the Company
and related bodies corporate
The relevant interests of each Director in the securities of Anson Resources Limited
at the date of this Report are as follows:
Fully paid
ordinary shares
No.
Performance
Rights No.
Options Ex $0.20
expiring 31 July 2023
No. *
Bruce Richardson
26,500,868
12,200,000
Peter (Greg) Knox
15,867,087
5,200,000
Michael van Uffelen
838,768
3,600,000
–
162,000
48,300
* Bonus options resulting from the issuance of ordinary shares. These options were left unexercised and have
expired on 31 July 2023.
Company Secretary
Principal Activities
Nicholas Ong, B.Comm, MBA,
The principal activities during the year of
GradDipAppFin, GradDipACG (Appointed on
the entities within the Group were:
30 November 2020)
• Exploration for minerals in the State of
Mr Ong brings 19 years’ experience in listing
Utah in the United States of America
rules compliance and corporate governance.
and the mid-west of Western Australia;
He is experienced in mining project finance,
mining and milling contract negotiations,
mine CAPEX & OPEX management, and toll
treatment reconciliation. Mr Ong is a Fellow
of the Governance Institute of Australia and
Fellow of Institute of Chartered Secretaries
and Administrators. He previously worked
as Principal Advisor at the ASX overseeing
hundreds of corporate listings and has
worked as a Company Secretary and
Director to numerous listed companies.
Dividends
No dividends have been paid or declared
since the start of the financial year and the
Directors do not recommend the payment
of a dividend in respect of this financial year.
• Development of the Paradox and Green
River Lithium Projects in Utah, primarily
for the extraction of lithium and
bromine from brine; and
• Exploration of The Bull Project’s mafic-
ultramafic intrusive complex which has
similar geological terrane as Chalice
Gold Mines Limited’s (ASX:CHN) Julimar
Ni-Cu-PGE Discovery.
Operating results for the year
Net loss attributable to equity holders of
the parent for the year ended 30 June 2023
was $12.4 million (2022: $3.5 million). The
loss per share was 1.09 cents (2022: 0.36
cents).
Cash and cash equivalents at 30 June 2023
totalled $38.6 million (2022: $5.7 million).
41
Annual Report 2023 Significant changes in
the state of affairs
Likely developments
and expected results
There were no significant changes in the
Likely developments, future prospects
state of affairs of the Group during the
and business strategies of the
financial year.
Significant events
after balance date
On 18 July 2023, Anson announced it
entered into an agreement to acquire
a lithium brine project from Legacy
Lithium Corp. in the Paradox Basin for
operations of the Group and the
expected results of those operations
have not been included in this report as
the Directors believe that the inclusion
of such information would likely to result
in unreasonable prejudice to the Group.
Environmental legislation
US$1,000,000 and 15,060,981 ordinary
The Group’s projects are subject to
shares in the Company. This strategic
the respective laws and regulations
acquisition will result in the Paradox
regarding environmental matters and
Lithium Project becoming one contiguous
the discharge of hazardous wastes and
mineralised block. The transaction
is subject to Legacy Lithium Corp.
materials in the countries in which the
projects are located.
shareholder approval and is expected to be
completed on the 29th of September 2023.
As with all exploration, these projects
would be expected to have a variety
On 13 September 2023, Anson completed
of environmental impacts should
the acquisition of a strategic land package
development proceed.
at the Green River project area. All
conditions for the sale and purchase were
met on this date and Anson paid US$2.4
million to the vendor.
The Group intends to conduct its
activities in an environmentally
responsible manner and in accordance
with applicable laws and industry
Other than the above there has not arisen
standards. Areas disturbed by the
in the interval between the end of the
Group’s activities will be rehabilitated
financial year and the date of this report
as required by the respective laws and
any item, transaction or event of a material
regulations.
and unusual nature likely, in the opinion
of the Directors of the Company, to affect
significantly the operations of the Group
and the results of those operations.
42
Share Options and
Performance Rights
Options and performance rights
granted, converted and unissued
Shares issued on exercise of options
During or since the end of the financial
year, the Group issued ordinary shares of
the Company as a result of the exercise of
options as follows (there are no amounts
All options were granted in previous
unpaid on the shares issued):
financial years. No options have been
granted since the end of the previous
financial year.
At the date of this report, there are
no unissued shares under options
(36,080,526 at the reporting date).
At the date of this report and the
reporting date, there are 21,000,000
performance rights issued to Directors
of the Company which are yet to convert.
Further details about performance
rights to directors are included in the
remuneration report in section E.
Number
of shares
138,888,889
39,517,154
59,323,269
347,594
4,328,026
Amount paid on
each share
0.36
0.205
0.035
0.20
0.0555
43
Annual Report 2023 Indemnification and insurance
Auditor Independence
of Directors and Officers
and Non-Audit Services
The Company has agreed to indemnify
A copy of the auditor’s independence
directors and executive officers against all
declaration as required under section
liabilities to another person (other than the
307C of the Corporations Act 2001 is
Company or related body corporate) that
set out on page 57.
may arise from their position as officers of
the Company and its controlled entities,
Non-Audit Services
The Company’s auditor, Stantons, did
not provide any non-audit services to
the Company during the year.
Proceedings on Behalf of the
Company
There are no proceedings on behalf of
the Company under section 237 of the
Corporations Act 2001 in the financial
year or at the date of this report.
except where the liability arises out of
conduct involving a lack of good faith. The
agreement stipulates that the Company will
meet the full amount of any such liabilities,
including costs and expenses. The contract
of insurance prohibits disclosure of the
nature of the liability and the amount of the
premium.
No indemnity has been paid in respect of
auditors of the Group.
Directors’ Meetings
The number of meetings of Directors held
during the financial year and the number of
meetings attended by each Director was as
follows:
Name
B Richardson
G Knox
M van Uffelen
Number of meeting eligible
to attend
Number of meetings
attended
5
5
5
5
5
5
44
2.2
Remuneration report
This remuneration report for the year ended 30 June 2023 outlines
remuneration arrangements of the Company and the Group in
accordance with the requirements of the Corporations Act 2001 (the Act)
and its regulations. This information has been audited as required by
section 308(3C) of the Act.
The report details the remuneration
The Remuneration Report is set out under
arrangements for the Group’s key
the following main headings:
management personnel (KMP). KMP
are those persons having authority and
responsibility for planning, directing and
controlling the activities of the entity,
A. Principles used to determine the nature
and amount of remuneration
B. Details of remuneration for the year
directly or indirectly, including all Directors.
ended 30 June 2023
C. Details of remuneration for the year
Details of remuneration
The following were key management
ended 30 June 2022
D. Service agreements
personnel of the Group at any time during
E. Share-based compensation
the financial year and unless otherwise
F. Option holdings of key management
indicated were key management personnel
personnel
for the entire year:
i. Directors
B Richardson
Executive Chairman and
G. Share holdings of key management
personnel
H. Loans to key management personnel
I. Other transactions and balances with
Chief Executive Officer
key management personnel
G Knox
Executive Director
M van Uffelen
Non-executive Director
J. Use of remuneration consultants
K. Voting and comments made at the
Company’s 2022 Annual General Meeting
This report outlines the remuneration
arrangements in place for Directors and
executives of Anson Resources Ltd and its
controlled entities (the “Company” and the
“Group”).
46
A. Principles used to determine the nature and amount of remuneration
Remuneration philosophy
remuneration that aligns potential
The performance of the Group depends
upon the quality of its directors and
executives. To prosper, the Group must
attract, motivate and retain highly skilled
directors and executives.
It is the Group’s objective to provide
maximum stakeholder benefit from the
retention of a high-quality board and
KMP by remunerating them fairly and
appropriately with reference to relevant
employment market conditions. The
Board links the nature and amount of
some Director and KMP emoluments to
the Group’s financial and operational
rewards with the Group’s objectives while
being transparent to shareholders. Key
remuneration elements for the Directors
and KMP are reviewed annually by the
Board to determine appropriate awards
based upon factors such as individual
performance, Company results and
competitive benchmark survey data.
Remuneration structure
In accordance with best practice
Corporate Governance, the structure of
non-executive director and executive
remuneration is separate and distinct.
performance.
Non-executive Director remuneration
To this end, the Group embodies the
The Board’s non-executive fee policy
following principles in its compensation
seeks to set aggregate remuneration at a
framework:
• Provide competitive rewards to attract
high calibre executives;
• Link executive rewards to shareholder
value;
• Significant portion of executive
compensation ‘at risk’, dependent upon
meeting pre-determined performance
benchmarks; and
• Establish appropriate, demanding
performance hurdles in relation to
variable executive compensation.
The Anson directors or KMP compensation
strategy provides for fair, competitive
level that provides the Company with the
ability to attract and retain directors of
the highest calibre, whilst incurring a cost
that is acceptable to shareholders.
The maximum remuneration of Non-
Executive Directors is the subject of
shareholder resolution in accordance
with the Company’s Constitution, and
the Corporations Act 2001 as applicable.
The amount of aggregate remuneration
sought to be approved by shareholders
and the manner in which it is apportioned
amongst directors is reviewed annually.
The Board considers advice from external
shareholders as well as the fees paid to
non-executive directors of comparable
companies when undertaking the annual
review process.
The Board may recommend awarding
47
Annual Report 2023 additional remuneration to Non-Executive
The following is a brief description of the
Directors called upon to perform extra
approach for each element:
services or make special exertions on behalf
of the Group.
• Primary benefit – base salary is reviewed
annually by the Board of Directors
The remuneration of Non-executive
and adjusted based upon individual
Directors is detailed in section B of the
performance, relevant comparative
remuneration report.
Senior Manager and Executive Director
remuneration
The entity aims to reward executives
with a level and mix of compensation
commensurate with their position and
responsibilities within the entity so as to:
compensation in the market and
internally and, where appropriate,
external advice on policies and practices,
to ensure competitiveness. Executives
are given the opportunity to receive their
fixed remuneration in a variety of forms
including cash and fringe benefits such
as motor vehicles and expense payment
plans.
•
reward executives for company, business
• Variable short term incentives - cash
unit and individual performance against
targets set to appropriate benchmarks;
bonuses are reviewed annually with
awards granted based upon individual
• align the interests of executives with
performance and Company results
those of shareholders;
•
link rewards with the strategic goals and
performance of the company; and
• ensure total compensation is
competitive by market standards.
using identified strategic objectives
and metrics. Bonus targets are
benchmarked from time to time to
ensure competitiveness. The Board
reserves the right to grant bonuses and
the quantum of the bonus dependent on
Compensation consists of the following key
performance.
elements:
• Base pay and non-monetary benefits;
• Short-term performance incentives;
• Share based payments; and
• Other remuneration such as
• Variable long term incentives (LTI) -
LTI are granted to key management
personnel and delivered in the form of
loan funded share plans, options and
performance rights. These incentives
are reviewed annually along with the
superannuation and long service leave.
relevant long term performance hurdle.
The proportion of fixed compensation and
variable compensation (potential short term
and long term incentives) is established for
each key management person by the Board
of Directors with reference to comparable
roles in similar companies.
The objective of the LTI plan is to reward
executives in a manner that aligns this
element of compensation with the
creation of shareholder wealth.
48
Share-based payment plans
Each option entitles the holder to
All equity-based remuneration paid to
Directors and executives is valued at the
cost to the Group and expensed. Options
and performance rights are valued using
the Black-Scholes methodology. All
equity-based remuneration for Directors
must be approved by shareholders.
Below is a summary of the terms and
conditions of issue of the options issued
to KMPs under the share plan as of 30
June 2023.
subscribe for one share upon exercise
of the option and is exercisable at any
time, once vesting conditions have been
satisfied, on or prior to expiry. Shares
issued on exercise of the options will
rank equally with the then shares of the
Company. The options are not transferable.
The Company will not apply to ASX for
quotation of the options however it will
apply to ASX for quotation of the shares
issued upon the exercise of the options.
Total number of
Performance Rights
Vesting
Condition
Expiry
Date
1,600,000
Commissioning an in-field pilot plant
18/04/2025
1,600,000
Securing a strategic investor to finance an on-
site pilot plant program
18/04/2025
1,600,000
Completion of an on-site pilot testing program 18/04/2025
1,400,000
1,800,000
2,200,000
1,800,000
2,000,000
2,000,000
2,600,000
2,400,000
The sale or farm out of the Project Brine
Project
29/11/2023
Passing first stage batter/cathode
manufacturer lithium chemical acceptance
testing
16/02/2027
Securing an offtake agreement(s) for lithium
and/or bromine chemicals
16/02/2027
Securing funding for a full-scale production
plant
16/02/2027
Securing an offtake agreement(s) for chemical
products other than lithium or bromine.
16/02/2027
Securing a strategic investor to finance boron,
bromine and/or iodine production in an on-
site pilot plant program.
16/02/2027
Divestment, joint venture or financing of any
project
16/02/2027
Establishing a JORC Resource for a mineral
exploration project other than Project Brine
Project.
16/02/2027
49
Annual Report 2023 B. Details of remuneration for the year ended 30 June 2023
Short-term benefits
Salary &
Fees (i)
Cash
Bonus (ii)
Non-
cash
benefits
(iii)
Directors
Non-executive
Post-
employment
Share-
based
payments
Super-
annuation
Equity
settled
shares
Bonus
Shares (v)
Total
$
Percentage
Performance
Related
M van Uffelen
169,674
88,669
–
9,649
14,642
70,718
353,352
49%
Executive
B Richardson (i)(iv)
743,052
483,126
208,551
–
71,490
323,528
1,829,747
P G Knox (i)(iii)
303,845
187,387
41,080
1,399
28,990
125,766
688,467
48%
50%
Total KMPs
1,216,571
759,182
249,631
11,048
115,122
520,012
2,871,566
i.
Salary amount is gross of taxes and mandatory statutory deductions as applicable in Australia and the
United States. Salary derived in the United States includes deductions for Medicare and Social Security
which Mr Richardson and Mr Knox will not benefit from as they are not citizens of the United States. In
addition, short-term employee benefits for the Executive Directors are paid in USD and were converted
at the average rate of 0.6735.
ii. Cash bonus was awarded following successful release of the DFS on 8 October 2022, completion of
$50m equity raise on 16 September 2022 and resource upgrade on 2 November 2022.
iii. Non-cash benefits include movements in annual leave provisions.
iv. Amounts exclude expatriate benefits.
v. During the year, shares were issued to directors per the 2022 AGM resolution (5 December 2022). Their
valuation was based on the share price at the date of the transaction of $0.23 per share. Refer to G of
the remuneration report for further details.
50
C. Details of remuneration for the year ended 30 June 2022
Short-term benefits
Post-
employment
Share-based
payments
Cash Salary &
Fees (i)
Non-cash
benefits (ii)
Super-
annuation
Equity settled
shares
Total
$
Percentage
Performance
Related
Non-executive
Directors
M van Uffelen
132,361
–
3,636
(4,943)
131,054
(4%)
Executive
Directors
B Richardson (i)(iii)
P G Knox (i)(iii)
Total KMPs
495,984
195,965
23,844
–
824,310
23,844
–
(24,134)
(9,787)
495,694
189,814
(5%)
(5%)
(38,864)
816,562
3,636
7,272
i.
Salary amount is gross of taxes and mandatory statutory deductions as applicable in Australia and the
United States. Salary derived in the United States includes deductions for Medicare and Social Security
which Mr Richardson and Mr Knox will not benefit from as they are not citizens of the United States. In
addition, short-term employee benefits the Executive Directors are paid in USD and are converted at
the average rate of 0.7258.
ii. Non-cash benefits include movements in annual leave provisions.
iii. Amounts exclude expatriate benefits.
51
Annual Report 2023 D. Service agreements
Executive Directors
The main terms of the employment contract
Bruce Richardson
Executive Chairman and CEO, Mr
with Mr Knox in USA are as follows:
• Fixed remuneration for an amount
reviewed and agreed by the Board
Richardson, is employed under contract.
annually;
The current employment contract
commenced on 19 February 2019 and has
no fixed term.
• 25 days of annual leave p.a; and
• Expatriate benefits to ensure the
employee is no worse off as a result of
The main terms of the employment contract
relocation to USA.
with Mr Richardson are as follows:
• Fixed remuneration for an amount
reviewed and agreed by the Board
annually;
• 25 days of annual leave p.a;
Other benefits:
Performance rights of 5,200,000 and
options of 162,000 (options expired on 31
July 2023 and were not exercised).
• 6 months prior written notice for
Non-executive Directors’
termination of employment. No other
remuneration
termination benefits applicable; and
• Expatriate benefits to ensure the
employee is no worse off as a result of
relocation to USA.
Other benefits:
Performance rights of 12,200,000.
P. Gregory Knox
Mr Knox is an Executive Director and
Geologist and is employed under contract.
The employment contract commenced on
28 August 2020 and has no fixed term.
Michael van Uffelen
Mr van Uffelen receives a Non-executive
Director fee of $51,288 per annum (from
October 2022) exclusive of superannuation.
In addition to the director fees, Mr van
Uffelen is paid for additional services
provided to the board under contract with
Black Tourmaline Consulting, an entity
in which Mr van Uffelen has a beneficial
interest, for remuneration of $10,906 per
month (from October 2022) plus GST. Note
that consulting fees are based on services
provided and these fees are dependent on
the work required in any given month.
Other benefits:
Performance rights of 3,600,000 and
options of 48,300 (options expired on 31
July 2023 and were not exercised).
52
E. Share-based compensation
Options granted to key
management personnel
No options were granted as
The table below shows the number of
Performance Rights granted, converted and
forfeited during the year.
compensation during the year to KMPs.
The shares to be issued in the event of
No options vested during the year.
vesting of the Performance Rights shall rank
pari-passu in all respects with other fully
Performance rights issued to Key
paid ordinary shares in the Company.
Management Personnel (KMP)
The terms and expiry of the performance
No performance rights were granted as
rights are detailed in Note 20 to the
compensation during the year to KMPs.
consolidated financial statements.
No performance rights vested during
the year to KMPs.
30 June 2023
Directors
B Richardson
P G Knox
M van Uffelen
Balance at
start of year
12,200,000
5,200,000
3,600,000
Granted Converted
Forfeited
Balance at
end of year
-
-
-
-
-
-
-
-
-
12,200,000
5,200,000
3,600,000
53
Annual Report 2023 F. Option holdings of key management personnel
The movement during the reporting period in the number of options over ordinary shares
held directly, indirectly or beneficially by each key management person, including their
related parties, is as follows:
30 June 2023
Directors
B Richardson
P G Knox
M van Uffelen
Balance at
start of year
Granted Converted
Forfeited
Balance at
end of year
Vested and
exercisable
–
162,000
48,300
–
–
–
–
–
–
–
–
–
–
162,000
48,300
–
162,000
48,300
The options have an exercise price of $0.20. The options expired on 31 July 2023
unexercised
G. Share holdings of key management personnel
The movement during the reporting period in the number of ordinary shares in the
Company held directly, indirectly or beneficially by each key management person, including
their related parties, is as follows:
30 June 2023
Directors
B Richardson
P G Knox
M van Uffelen
Balance at start
of the year
Issued upon vesting
of performance rights
Additions/
(disposals) (i)
Balance at end
of the year
25,094,223
15,320,279
531,300
–
–
–
1,406,645
546,808
307,468
26,500,868
15,867,087
838,768
i. During the year, shares were issued to directors per the 2022 AGM resolution (5 December 2022). Their
valuation was based on the share price at the date of the transaction of $0.23 per share.
54
H. Loans to Key Management Personnel
On 27 February 2014, the Company issued
The cost of the loan funded share plan
3,000,000 shares at 1.4 cents per share to
is recognised as a share-based payment
Key Management Personnel (KMPs) under
expense. The terms of the loans are:
a loan funded share plan approved at the
Annual General Meeting of the Company
held on 28 November 2013.
• Term of loan: 10 years.
•
Interest rate: 8% per annum.
On 10 December 2014, the Company issued
5,000,000 shares at 1.3 cents per share to
Key Management Personnel (KMPs) under
a loan funded share plan approved at the
Annual General Meeting of the Company
held on 26 November 2014.
• Lien: The Company shall have a lien over
the shares until the loan is repaid and
the Company shall be entitled to sell the
shares in accordance with the terms of
the Employee Share Plan if the loan is
not repaid when due.
• Payments in relation to shares: Any
On 21 December 2015, the Company issued
dividends or capital returns in relation
4,250,000 shares at 0.9 cents per share to
to the shares shall be applied against
Key Management Personnel (KMPs) under
repayment of the loan.
a loan funded share plan approved at the
Annual General Meeting of the Company
held on 27 November 2015.
• Proceeds of sale: In the event of sale of
the shares all sales proceeds shall be
applied against repayment of the loan.
Limit of liability: The liability of the employee
to repay the loan is limited to the payments
received by the employee in relation to the
shares and any proceeds from the disposal
of the shares.
55
Annual Report 2023 I. Other transactions and balances with Key Management Personnel
Other than the compensation shown above there were no other transactions with KMPs
or their associated entities during the year. No other transactions with key management
personnel occurred during the year.
J. Use of remuneration consultants
The Group did not engage the services of a remuneration consultant during the year.
K. Voting and comments made at the Company’s 2022 Annual General
Meeting
At the 2022 AGM, no comments were made on the remuneration report considered at the
meeting and votes cast against adoption of the remuneration report were fewer than the
threshold of 25%.
End of the Remuneration Report (Audited)
Signed in accordance with a resolution of the Directors:
Bruce Richardson
Executive Chairman and
Chief Executive Officer
28 September 2023
56
2.3
Auditor’s Independence Declaration
57
Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms 28 September 2023 Board of Directors Anson Resources Limited Level 3, 10 Eagle Street Brisbane, QLD 4000 Australia Dear Directors RE: ANSON RESOURCES LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Ansons Resources Limited. As Audit Director for the audit of the financial statements of Anson Resources Limited for the year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours sincerely STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director Annual Report 2023 3.0 Financial Statements
Contents
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
Consolidated Statement of Profit or Loss and other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditors Report
ASX Additional Information
66
67
68
69
70
111
112
116
58
3.0 Financial Statements
59
Annual Report 2023 3.1
Consolidated Statement of Profit or Loss and other
Comprehensive Income
for the Year Ended 30 June 2023
Other Income
Interest income
Expenses
Director and employee benefits expense
Operations costs
Consultancy, legal and professional fees
Depreciation
Corporate and administrative
Foreign exchange gain/(loss)
Loss on derivative instrument at fair value profit and loss
Finance costs
Other expenses
Loss from continuing operations before income tax expense
Income tax expense
Loss from continuing operations after income tax expense
Other Comprehensive Income
Items that will not be reclassified subsequently to profit or loss
Changes in fair value of financial assets – fair value OCI
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign subsidiaries
Total comprehensive loss for the year
Consolidated
Note
2023
$
Restated1
2022
$
300,709
732
(4,304,927)
(1,006,799)
(1,074,455)
(286,074)
(1,611,726)
1,808
(4,167,190)
(259,194)
(22,273)
(12,430,121)
–
(12,430,121)
(766,214)
(83,981)
(452,338)
(127,639)
(850,180)
(79,253)
(983,593)
(204,716)
–
(3,547,182)
–
(3,547,182)
10
17
5
6
19
10,298
(22,843)
32,904
(12,386,919)
470,408
(3,099,617)
Basic and diluted loss per share (cents per share)
7
(1.09)
(0.36)
The accompanying notes form part of these financial statements
1 Balances have been restated to reflect a change in accounting policy. Refer to Note 2 for further details.
60
3.2
Consolidated Statement of Financial Position
as at 30 June 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation assets
Financial assets - fair value OCI
Other assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Convertible note
Derivative financial liability
Total current liabilities
Non-current liabilities
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Consolidated
Note
2023
$
Restated2
2022
$
8
9
10
11
12
9
13
14
15
16
17
13
15
18
19
38,645,427
–
2,034,987
40,680,414
5,730,923
10,171
137,497
5,878,591
2,232,995
15,277,933
109,348
1,432,292
19,052,568
450,327
8,927,914
104,165
941,892
10,424,298
59,732,982
16,302,889
968,054
117,607
458,380
–
–
1,544,041
1,214,696
144,657
107,821
909,355
2,688,911
5,065,440
674,388
1,017,950
1,692,338
324,349
168,673
493,022
3,236,379
5,558,462
56,496,603
10,744,427
94,856,790
4,079,115
(42,439,302)
56,496,603
37,061,281
3,920,791
(30,237,645)
10,744,427
The accompanying notes form part of these financial statements
2 Balances have been restated to reflect a change in accounting policy. Refer to Note 2 for further details.
61
Annual Report 2023
3.3
Consolidated Statement of Cash Flows
for the Year Ended 30 June 2023
Cash flows from Operating Activities
Payments to suppliers and employees
Interest paid
Net cash (used in) operating activities
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Proceeds from sale of financial assets – FVOCI
Interest received
Payment for exploration and evaluation asset
Net cash (used in) investing activities
Cash Flows from Financing Activities
Proceeds from the issue of shares
Capital raising costs
Proceeds from exercise of options
Repayment of lease liabilities
Net cash provided by financing activities
Net increase in cash and cash equivalents held
Cash and cash equivalents at the beginning of the financial year
Effect of foreign exchange on amounts held in foreign currencies
Cash and cash equivalents at the end of the financial year
8
The accompanying notes form part of these consolidated financial statements
Consolidated
Note
2023
$
Restated3
2022
$
(9,880,640)
(36,151)
(9,916,791)
(1,216,687)
(7,561)
(1,224,248)
27(i)
(10,296)
-
300,709
(6,350,019)
(6,059,606)
(88,929)
10,225
732
(6,128,522)
(6,206,494)
50,000,000
(3,128,929)
2,280,406
(220,932)
48,930,545
32,954,148
5,730,923
(39,644)
38,645,427
7,357,322
(506,632)
4,180,273
(118,452)
10,912,511
3,481,769
2,232,947
16,207
5,730,923
3 Prior year comparatives have been reclassified in line with the change in accounting policy. Refer to Note 2 for further details.
62
3.4
Consolidated Statement of Changes in Equity
as at 30 June 2023
Consolidated Group
Contributed
Equity
Accumulated
Losses
Share Based
Payments
Reserve
Financial
Asset-Fair
Value OCI
Reserve
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Total
$
26,657,184
(26,690,463)
3,174,968
102,710
(392,455)
2,851,944
Balance at 1 July 2021 as previously
stated
Loss attributable to members of the parent
entity (restated)
Change in fair value of financial assets – Fair
Value OCI
Exchange differences on translation of
foreign subsidiaries (restated)
Total comprehensive loss for the year
(restated) 4
–
–
–
–
(3,547,182)
–
–
(3,547,182)
Transactions with owners in their capacity as owners:
Issue of share capital
Share issue costs
Conversion of options
Vesting of performance rights
7,357,322
(1,133,498)
4,180,273
–
–
–
–
–
–
–
–
–
–
626,866
-
(38,863)
–
(22,843)
–
–
(3,547,182)
(22,843)
–
470,408
470,408
(22,843)
470,408
(3,099,617)
–
–
–
–
–
–
–
–
7,357,322
(506,632)
4,180,273
(38,863)
Balance at 30 June 2022 as restated
37,061,281
(30,237,645)
3,762,971
79,867
77,953
10,744,427
Balance at 1 July 2022 as restated
37,061,281
(30,237,645)
3,762,971
79,867
77,953
10,744,427
Loss attributable to members of the parent
entity
Change in fair value of financial assets – Fair
Value OCI
Exchange differences on translation of
foreign subsidiaries
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
–
–
–
–
(12,430,121)
–
–
(12,430,121)
Issue of share capital
Share issue costs
Conversion of options
Conversion of convertible note
Share based payment for services
Others
Vesting of performance rights
Balance at 30 June 2023
50,000,000
(3,128,929)
2,280,406
8,101,020
543,012
–
–
–
–
–
–
–
228,464
–
–
–
–
–
–
–
–
–
–
–
10,298
–
–
(12,430,121)
10,298
–
32,904
32,904
10,298
32,904
(12,386,919)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
50,000,000
(3,128,929)
2,280,406
8,101,020
543,012
228,464
115,122
94,856,790
(42,439,302)
3,878,093
90,165
110,857
56,496,603
–
115,122
The accompanying notes form part of these consolidated financial statements
4 Balances have been restated to reflect a change in accounting policy. Refer to Note 2 for further details.
63
Annual Report 2023 3.5 Notes to the Consolidated Financial Statements
for the Year Ended 30 June 2023
Note 1: General information
Note 2: Significant accounting policies
Anson Resources Limited is a for-profit listed public
The principal accounting policies adopted in the
company limited by shares, incorporated and
preparation of the financial statements are set out
domiciled in Australia. The financial statements of
below. These policies have been consistently applied
Anson Resources Limited are for the consolidated
to all the years presented, unless otherwise stated.
entity consisting of Anson Resources Limited (the
‘Company’ or ‘Parent’) and its subsidiaries and together
Basis of preparation
are referred to as the ‘Group’ or ‘Anson’. The financial
statements are presented in Australian dollars,
which is Anson Resources Limited’s functional and
presentational currency.
The address of the registered office is: 10 Eagle Street
Brisbane, QLD 4000, Australia. The principal places
of business are in Australia and USA. A description of
the nature of the Group's operations and its principal
activities are included in the Directors' report, which is
not part of the financial statements.
Statement of compliance
These general purpose financial statements have
been prepared in accordance with Australian
Accounting Standards (“AASBs”) adopted by the
Australian Accounting Standards Board (“AASB”)
and the Corporations Act 2001. These financial
statements also comply with International Financial
Reporting Standards as issued by the International
Accounting Standards Board (“IASB”).
The financial statements were authorised for issue by
Basis of measurement
The financial statements have been prepared on the
historical cost basis, as modified by the revaluation
of financial assets and liabilities (including derivative
instruments) at fair value.
Going concern
The financial statements have been prepared on
a going concern basis, which assumes continuity
of normal business activities and the realisation
of assets and the settlement of liabilities in the
ordinary course of business.
During the year, the Company completed a capital
raise of $50,000,000 which will be used for the
continued development of the Paradox Lithium
Project in Utah. At 30 June 2023, the Group has cash
reserves of $38,645,427 and no loans or borrowings.
the directors on 28th September 2023.
64
The Directors regularly monitor the Group’s cash
policies, along with consideration of industry standards
position and on an on-going basis consider a number
and norms, and determined it was appropriate to
of strategic and operational plans to ensure that
change accounting policy in respect of exploration and
adequate funding continues to be available for the
evaluation expenditure.
Group to meet its business objectives. The Directors
believe that the Group is in a strong and stable
financial position to grow its current operations and
the Company has sufficient cash on hand to meet all
discretionary and non-discretionary obligations as
they come due over the next 12 months.
New or amended Accounting Standards and
Interpretations adopted
Prior to the year ended 30 June 2023, exploration
and evaluation expenditure were expensed to the
consolidated statement of profit or loss as incurred,
with certain costs being capitalised as ‘Intangible
assets’. In the current year, management determined
that capitalising exploration and evaluation
expenditures as ‘Exploration and evaluation assets’
to the consolidated statement of financial position,
if the expenditure meets the criteria under AASB
Except for the below, the accounting policies adopted
6 will provide more relevant information about the
are consistent with those of the previous financial
exploration activities of the Group. Refer to Exploration
year. There were no new and amended accounting
and evaluation assets accounting policy in sections
standards and interpretations applied for the first time
below for further details surrounding the accounting
during the year by the Group that had an impact on
policy. The Group has implemented this change in
the amounts recognised in prior periods or expected
accounting policy retrospectively.
to significantly affect the current or future periods.
Change in accounting policy – Exploration and
evaluation assets
During the year, the Group has continued to progress
with the Paradox exploration project in Utah with
Front End Engineering Design (FEED) work ongoing
at the time of the financial statements release.
Management have reviewed the Group’s accounting
Historical information has been restated to account for
the impact of the change in accounting policy, as below.
The impact on both basic and diluted earnings per
share is presented in note 7.
65
Annual Report 2023 i. Impact on Consolidated Statement of Financial Position
Total Current Assets
Property, Plant & Equipment
Exploration and evaluation asset
Intangible assets
Other Non-Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated losses
Total Equity
Note
11
2022
Reported
$
Adjustment
$
2022
Restated
$
5,878,591
–
5,878,591
450,327
–
5,557,616
1,046,057
7,054,000
12,932,591
5,065,440
5,558,462
–
8,927,914
(5,557,616)
–
3,370,298
3,370,298
450,327
8,927,914
–
1,046,057
10,424,298
16,302,889
–
–
5,065,440
5,558,462
7,374,129
3,370,298
10,744,427
19
37,061,281
3,754,799
(33,441,951)
7,374,129
–
165,992
3,204,306
3,370,298
37,061,281
3,920,791
(30,237,645)
10,744,427
Note: Opening retained earnings at 1 July 2021 was not materially impacted as a result of the change in accounting policy. Hence, the third
statement of financial position is not required to be disclosed.
ii. Impact on Consolidated Statement of Profit or Loss and Other Comprehensive Income
Other Income
Expenses6
Director and employee benefits expense
Operations costs7
Consultancy, legal and professional fees
Depreciation
Corporate and administrative
Foreign exchange (loss)
Loss on derivative instrument
Finance costs
Loss from continuing operations before income tax
Income tax expense
Loss from continuing operations after income tax
6 Prior year comparatives have been reclassified to enhance comparison.
2022
Reported
$
Adjustment
$
2022
Restated
$
732
–
732
(766,214)
(3,288,287)
(452,338)
(127,639)
(850,180)
(79,253)
(983,593)
(204,716)
(6,751,488)
–
(6,751,488)
–
3,204,306
–
–
–
–
–
–
3,204,306
–
3,204,306
(766,214)
(83,981)
(452,338)
(127,639)
(850,180)
(79,253)
(983,593)
(204,716)
(3,547,182)
–
(3,547,182)
7 Previously presented as ‘exploration costs’ within the consolidated statement of profit or loss and other comprehensive income.
66
New accounting standards and
interpretations not yet adopted
statements of subsidiaries to ensure consistency
with the accounting policies adopted by the Group.
Certain new accounting standards and
interpretations have been published that are not
mandatory for this reporting period and have
not been early adopted by the Group. These new
accounting standards and interpretations not
yet adopted are not expected to have a material
effect on the Group in the current period and on
foreseeable future transactions.
Basis of consolidation
The consolidated financial statements comprise
The Group treats transactions with non-controlling
interests that do not result in a loss of control as
transactions with equity owners of the Group.
A change in ownership interest results in an
adjustment between the carrying amounts of the
controlling and noncontrolling interests to reflect
their relative interests in the subsidiary. Any
difference between the amount of the adjustment
to noncontrolling interests and any consideration
paid or received is recognised in a separate reserve
within equity attributable to owners of the Group.
the financial statements of the Group and its
Where the Group loses control over a subsidiary, it
subsidiaries as at 30 June 2023.
derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary
together with any cumulative translation differences
recognised in equity. The Group recognises the fair
value of the consideration received and the fair value
of any investment retained together with any gain or
loss in profit or loss.
Control is achieved when the Group is exposed
to, or has rights to, variable returns from its
involvement with the investee and has the ability
to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group.
They are de-consolidated from the date that control
cease.
All intra-Group assets and liabilities, equity, income,
expenses and cash flows relating to transactions
between members of the Group are eliminated
in full on consolidation. Accounting policies of
subsidiaries have been changed and where
necessary, adjustments made to the financial
67
Annual Report 2023 Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated
at the foreign exchange rate ruling at the date of
the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet
date are translated to Australian dollars at the foreign
exchange rate ruling at that date. Foreign exchange
Current income tax relating to items recognised
directly in equity is recognised in equity and not in the
statement of profit or loss. Management periodically
evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions
where appropriate.
Deferred tax
differences arising on translation are recognised in the
Deferred income tax is provided on all temporary
profit and loss statement. Non-monetary assets and
differences at the balance sheet date between the
liabilities that are measured in terms of historical cost
tax bases of assets and liabilities and their carrying
in a foreign currency are translated using the exchange
amounts for financial reporting purposes.
rate at the date of the transaction.
Financial statements of foreign operations
Deferred income tax liabilities are recognised for all
taxable temporary differences except:
The assets and liabilities of foreign operations are
translated to Australian dollars at foreign exchange
rates ruling at the balance sheet date. The revenues
and expenses of foreign operations are translated to
Australian dollars at rates approximating the foreign
• when the deferred income tax liability arises from
the initial recognition of goodwill or of 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 profit nor taxable
exchange rates ruling at the dates of the transactions.
profit or loss; or
Foreign exchange differences arising on retranslation
• when the taxable temporary difference is associated
are recognised in other comprehensive income and
with investments in subsidiaries, associates or
presented in the foreign currency translation reserve
interests in joint ventures, and the timing of
(FCTR). The foreign currency reserve is recognised
the reversal of the temporary difference can be
in profit or loss when the foreign operation or net
controlled and it is probable that the temporary
investment is disposed of.
difference will not reverse in the foreseeable future.
Other income
The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent
Other income is recognised when it is received or when
that it is no longer probable that sufficient taxable
the right to receive payment is established.
Current income tax
Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted
or substantively enacted at the reporting date in the
countries where the Group operates and generates
taxable income.
profit will be available to allow all or part of the
deferred income tax asset to be utilised. Unrecognised
deferred tax assets are reassessed at each balance
sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow
the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are
offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the
deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
68
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash
equivalents are short term, highly liquid investments
that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value.
Trade and other receivables
Other receivables are recognised at amortised cost,
less any allowance for expected credit losses.
Exploration and evaluation assets
Costs of site restoration are provided over the life of
the project from when exploration commences and
are included in the costs of that stage. These costs
are capitalised within Property, Plant and Equipment.
Property, plant and equipment
Property, plant and equipment is stated at cost less
accumulated depreciation and any accumulated
impairment losses. Cost includes expenditure
directly attributable to the acquisition and
commissioning of the asset. Land is not depreciated.
The cost of property, plant and equipment includes
the estimated cost of rehabilitation, restoration and
Exploration and evaluation expenditures incurred
dismantling.
are capitalised in respect of each identifiable area
of interest. Please refer to the change in accounting
policy details in Note 2. These costs are capitalised
to the extent that they are expected to be recovered
through the successful development of the area or
where activities in the area have not yet reached a
stage that permits reasonable assessment of the
existence of economically recoverable reserves or
Costs attributable to assets under construction
are only capitalised when it is probable that future
economic benefits associated with the asset will flow
to the Group and the costs can be measured reliably.
Assets are depreciated or amortised from the date
of acquisition or from the time an asset is completed
and held ready for use. Land is not depreciated.
sale. Accumulated costs in relation to an abandoned
Depreciation is calculated on a straight-line basis
area are written off in full against profit in the year
over the estimated useful life of the assets as follows:
in which the decision to abandon the area is made.
At the time that a decision is taken to develop an
• Office Equipment: over 2 to 5 years
area with proven technical feasibility and commercial
• Motor vehicles: over 2 to 5 years
viability the costs will cease to be capitalised as
• Plant and Equipment: 2 to 10 years
exploration and evaluation assets and existing
assets will be transferred to Property, Plant and
Equipment.
Exploration and Evaluation expenditure which do
not satisfy these criteria are expensed.
A regular review is undertaken of each area of
interest to determine the appropriateness of
continuing to capitalise costs in relation to that
area of interest. If, after expenditure is capitalised,
information becomes available suggesting that the
recovery of expenditure is unlikely, the amount
capitalised is written off to profit or loss in the
period when the new information becomes available.
• Mine properties: over related mine/tenement life.
The depreciation and amortisation rates are
reviewed annually and adjusted if appropriate.
An asset’s carrying amount is written down to its
recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposal of an item of property,
plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount
of property, plant and equipment and are recognised
net within the profit and loss statement.
69
Annual Report 2023 Right of use assets
the asset is allocated to its appropriate CGU.
A right of use asset is recognised at the
When the carrying amount of an asset or CGU
commencement date of a lease. Right of use
exceeds its recoverable amount, the asset or CGU
assets are measured at cost, less any accumulated
is considered impaired and is written down to its
depreciation and impairment losses, and adjusted
recoverable amount. The Group bases its impairment
for any remeasurement of lease liabilities. The cost
calculation on budgets and forecast calculations,
of right of use assets includes the amount of lease
which are prepared separately for each of the Group’s
liabilities recognised, initial direct costs incurred, and
CGUs to which the individual assets are allocated.
lease payments made at or before the commencement
date less any lease incentives received.
The Group considers annually whether there have
been any indicators of impairment and then tests
Right of use assets are depreciated on a straight-line
whether non-current assets, including property, plant
basis over the unexpired period of the lease or the
and equipment, intangible assets and right-of-use
estimated useful life of the asset, whichever is the
assets, have suffered any impairment. If there are any
shorter. Where the Group expects to obtain ownership
indicators of impairment, the recoverable amounts of
of the leased asset at the end of the lease term, the
CGU’s have been determined based on value in use
depreciation is over its estimated useful life. Right of
calculations or fair value less cost of disposal. The
use assets are subject to impairment or adjusted for
assessment of impairment indicators and impairment
any remeasurement of lease liabilities.
calculations require the use of assumptions and
The Group has elected not to recognise a right of use
estimates.
asset and corresponding lease liability for short-term
An assessment is also made at each reporting date
leases with terms of 12 months or less and leases of
as to whether there is any indication that previously
low-value assets. Lease payments on these assets are
recognised impairment losses may no longer exist
expensed to profit or loss as incurred.
Right of use assets have been included within
property, plant and equipment within the statement of
financial position.
Impairment of non-financial assets
The Group assesses at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Group estimates
the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or Cash Generating
Unit’s (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate
cash inflows that are largely independent of those
or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously
recognised impairment loss is reversed only if there
has been a change in the estimates used to determine
the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless
the asset is carried at revalued amount, in which case
the reversal is treated as a revaluation increase. After
such a reversal the depreciation charge is adjusted in
future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis
from other assets or groups of assets in which case
over its remaining useful life.
70
Trade and other payables
Trade and other payables 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
Additional disturbances or changes in rehabilitation
costs will be recognised as additions or changes
to the corresponding exploration expenditure and
rehabilitation provision, prospectively from the date of
change.
and are not discounted. The amounts are unsecured
Employee benefits
and are usually paid within 30 days of recognition.
Provisions
Provisions are recognised when the Group has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. When the Group
expects some or all of a provision to be reimbursed,
for example under an insurance contract, the
reimbursement is recognised as a separate asset but
only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the
statement of profit or loss net of any reimbursement.
Wages, salaries, annual leave and sick leave liabilities for
wages and salaries, including non-monetary benefits,
annual leave and accumulating sick leave expected
to be settled within 12 months of the reporting date
are recognised in respect of employees’ services
up to the reporting date. They are measured at the
amounts expected to be paid when the liabilities are
settled. Based on past experience, the Group does
not expect the full amount of annual leave classified
as current liabilities to be settled within the next 12
months. However, these amounts must be classified
as current liabilities since the Group does not have an
unconditional right to defer the settlement of these
amounts. Expenses for non-accumulating sick leave are
recognised when the leave is taken and are measured at
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects the risks specific to the liability. When
the rates paid or payable.
Long service leave
discounting is used, the increase in the provision due to
The liability for long service leave for Australian
the passage of time is recognised as a borrowing cost.
employees is recognised in the provision for employee
Provision for Rehabilitation
In accordance with the Group’s environmental policy
and applicable legal requirements, a provision for site
rehabilitation is recognised in respect of the estimated
cost of rehabilitation, decommissioning and restoration
of the area disturbed during mining activities up to the
reporting date but not yet rehabilitated.
benefits and measured as 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 period of service. Expected
future payments are discounted using market yields at
the reporting date on national government bonds with
terms to maturity and currencies that match, as closely
When the liability is initially recognised, the estimated
as possible, the estimated future cash outflows.
cost is included within exploration expenditure. At
each reporting date the site rehabilitation provision is
re-measured to reflect any changes in discount rates
and timing or amounts of the costs to be incurred.
71
Annual Report 2023 Lease liabilities
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
together with non-vesting conditions that do not
determine whether the Group receives the services
that entitle the employees to receive payment.
at the present value of the lease payments to be made
The cost of equity-settled transactions are recognised
over the term of the lease, discounted using the interest
as an expense with a corresponding increase in equity
rate implicit in the lease or, if that rate cannot be readily
over the vesting period. The cumulative charge to
determined, the Group’s incremental borrowing rate.
profit or loss is calculated based on the grant date fair
Lease payments comprise of fixed payments less any
value of the award, the best estimate of the number of
lease incentives receivable, variable lease payments
awards that are likely to vest and the expired portion
that depend on an index or a rate, amounts expected to
of the vesting period. The amount recognised in
be paid under residual value guarantees, exercise price
profit or loss for the period is the cumulative amount
of a purchase option when the exercise of the option
calculated at each reporting date less amounts already
is reasonably certain to occur, and any anticipated
recognised in previous periods.
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.
Market conditions are taken into consideration in
determining fair value. Therefore any awards subject to
market conditions are considered to vest irrespective
Lease liabilities are measured at amortised cost using
of whether or not that market condition has been met,
the effective interest method. The carrying amounts are
provided all other conditions are satisfied.
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.
Share-based payment transactions
The Group provides benefits to directors, employees
(including senior executives) and consultants of the
Group in the form of share-based payments, whereby
services are rendered in exchange for shares or rights
over shares (equity-settled transactions).
The cost of equity-settled transactions are measured
at fair value on grant date. Fair value is independently
determined using either the Black-Scholes option
pricing model that takes into account the exercise price,
the term of the option, the impact of dilution, the share
price at grant date and expected price volatility of the
underlying share, the expected dividend yield and
the risk free interest rate for the term of the option,
If equity-settled awards are modified, as a minimum
an expense is recognised as if the modification has
not been made. An additional expense is recognised,
over the remaining vesting period, for any modification
that increases the total fair value of the share-based
compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the
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 had vested on the date of cancellation, and
any expense not yet recognised for the award is
recognised immediately. However, if a new award is
substituted for the cancelled award and designated as
a replacement award on the date that it is granted, the
cancelled and new award are treated as if they were a
modification of the original award, as described in the
previous paragraph.
72
Other financial assets
Other financial assets are initially measured at fair
value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair
value through profit or loss or OCI. Such assets are
the Group benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case,
such gains are recorded in OCI. Equity instruments
designated at fair value through OCI are not subject to
impairment assessment.
subsequently measured at either amortised cost or fair
The Group elected to classify irrevocably its listed
value depending on their classification. Classification is
equity investments under this category.
determined based on both the business model within
which such assets are held and the contractual cash
flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are ‘solely
payments of principal and interest (SPPI)’ on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level.
Financial assets are derecognised when the rights
to receive cash flows have expired or have been
transferred and the Group has transferred substantially
all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a
financial asset, its carrying value is written off.
Impairment of financial assets
The Group recognises a loss allowance for expected
credit losses on financial assets which are either
measured at amortised cost or fair value through other
comprehensive income. The measurement of the loss
allowance depends upon the Group’s assessment at the
end of each reporting period as to whether the financial
instrument’s credit risk has increased significantly
since initial recognition, based on reasonable and
supportable information that is available, without
undue cost or effort to obtain.
Where there has not been a significant increase in
exposure to credit risk since initial recognition, a
12-month expected credit loss allowance is estimated.
This represents a portion of the asset’s lifetime
expected credit losses that is attributable to a default
event that is possible within the next 12 months. Where
Financial assets designated at fair value through OCI
a financial asset has become credit impaired or where it
is determined that credit risk has increased significantly,
the loss allowance is based on the asset’s lifetime
expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash
shortfalls over the life of the instrument discounted at
the original effective interest rate.
(equity instruments)
Upon initial recognition, the Group can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under AASB
132 Financial Instruments: Presentation and are not
held for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit or loss when
the right of payment has been established, except when
73
Annual Report 2023 Financial Liabilities
Derecognition
Financial liabilities are classified, at initial recognition,
A financial liability is derecognised when the obligation
as financial liabilities at fair value through profit or
under the liability is discharged or cancelled or expires.
loss, loans and borrowings, payables, or as derivatives
When an existing financial liability is replaced by another
designated as hedging instruments in an effective
from the same lender on substantially different terms,
hedge, as appropriate. All financial liabilities are
or the terms of an existing liability are substantially
recognised initially at fair value and, in the case of
modified, such an exchange or modification is treated
loans and borrowings and payables, net of directly
as the derecognition of the original liability and the
attributable transaction costs.
The Group’s financial liabilities include trade and other
payables, loans and borrowings including a convertible
note, and derivative financial instruments.
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit or loss.
Fair value of measurement
Financial liabilities at fair value through profit or loss
When an asset or liability, financial or non-financial, is
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss.
Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Group
that are not designated as hedging instruments in
hedge relationships as defined by AASB 9. Separated
embedded derivatives are also classified as held for
trading unless they are designated as effective hedging
instruments.
Gains or losses on liabilities held for trading are
recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at
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. These valuation techniques
maximise, to the extent possible, the use of observable
the initial date of recognition, and only if the criteria
market data.
in AASB 9 are satisfied. The Group has designated the
convertible note embedded derivative liability as at fair
value through profit or loss.
Convertible Notes
Convertible notes are recognised as a liability on
an amortised cost basis using the effective interest
method until extinguished upon conversion or at the
instrument’s maturity date.
74
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. AASB 13 Fair Value
Measurement requires disclosure of fair value
measurements by level of the following fair value
measurement hierarchy:
Earnings per share
• Level 1: Quoted market price (unadjusted) in an
Basic earnings per share is calculated as net profit/(loss)
active market for an identical instrument.
attributable to the owners of Anson Resources Limited,
• Level 2: Valuation techniques based on observable
adjusted to exclude any costs of servicing equity (other
inputs, either directly (i.e., as prices) or indirectly
than dividends) and preference share dividends, divided
(i.e., derived from prices).
• Level 3: Valuation techniques using significant
unobservable inputs. This category includes all
instruments where the valuation technique includes
inputs not based on observable data and the
unobservable inputs have a significant effect on the
instrument’s valuation.
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.
by the weighted average number of ordinary shares,
adjusted for any bonus element in ordinary shares
issued during the financial year.
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 additional ordinary shares that would have been
outstanding assuming conversion of all dilutive potential
ordinary shares.
For recurring and non-recurring fair value
Goods and Services Tax (‘GST’) and other
measurements, external valuers may be used when
similar taxes
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.
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.
Revenues, expenses and assets are recognised net of
the amount of associated GST, unless the GST incurred
is not recoverable from the tax authority. In this case it
is recognised as part of the cost of the acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the
amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the tax authority
is included in other receivables or other payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or
financing activities which are recoverable from, or
payable to the tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
75
Annual Report 2023 Note 3: Significant accounting judgements, estimates and assumptions
Comparatives
Certain comparative information has been reclassified
where appropriate to enhance comparability.
The preparation of the Group’s consolidated financial
statements requires judgements, estimates and
assumptions that affect the application of policies and
reported amounts in the financial statements. The
estimates and associated assumptions are based on
historical experience and various other factors that are
believed to be reasonable under the circumstances, the
results of which form the basis of making judgements
about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.
Changes in these estimates and assumptions as new
information about the presence or recoverability of
lithium resources becomes available, may impact the
assessment of the recoverable amount of exploration
and evaluation assets. If, after having capitalised the
expenditure under the accounting policies, a judgement
is made that the recovery of the expenditure is unlikely,
the amount capitalised is written off in the consolidated
statement of comprehensive income in the period
when the new information becomes available. The
recoverability of the carrying amount of exploration
and evaluation assets is dependent on the successful
development and commercial exploitation or sale of
the respective areas of interest.
Determination of rehabilitation costs
Provision is made for rehabilitation, restoration and
environmental costs when the obligation arises, based
on the net present value of estimated future costs.
The ultimate cost of rehabilitation and restoration is
uncertain, and management uses its judgment and
experience to provide for these costs over the life of
In particular, the most significant uses of judgements,
the operations.
estimates and assumptions are discussed below.
Recoverability of exploration and evaluation assets
Assessment of the recoverability of capitalised
exploration and evaluation expenditures requires
The Group makes estimates about the future cost of
rehabilitating tenements which are currently disturbed,
based on legislative requirements and current costs.
Cost estimates take into account past experience
and expectations of future events that are expected
certain estimates and assumptions to be made as to
to alter past experiences. Any changes to legislative
future events and circumstances, particularly in relation
requirements could have an impact on the expenditure
to whether successful development of ongoing projects
required to restore these areas.
will be achieved. Such estimates and assumptions may
change as new information becomes available.
Critical to this assessment are estimates and
assumptions as to lithium resources, the timing of
expected cash flows, exchange rates, commodity prices
and future capital requirements.
76
Note 4: Segment Reporting
Accounting policy
Description of segments
Operating Segments have been determined based
The Group has three reportable segments, namely
on reports reviewed internally by the Chief Executive
mineral exploration Australia (exploration projects
Officer (CEO), who is the Group’s chief operating
and administration in Australia), mineral exploration
decision maker (CODM). The reportable segments
USA (exploration projects and administration in USA)
reflect how performance is measured, and decisions
and other (representing unallocated corporate costs
regarding allocations of resources are made by the
including treasury activities and group management
CODM. The CODM assesses and reviews the business
activities).
using the operating segments below.
For the year ended 30 June 2023
Interest income
EBITDA8
Depreciation
Interest expense
Loss on derivative instruments FVPL
Segment loss for the period before tax
Income tax expense
Total loss for the period
Segment assets
Segment liabilities
Included within segment assets:
Additions to exploration and evaluation assets
For the year ended 30 June 2022 (Restated)9
Mineral
Exploration
USA
$
Mineral
Exploration
Australia
$
–
(5,398,303)
(198,339)
(27,667)
–
(5,624,309)
–
(5,624,309)
–
(2,245,128)
(87,735)
(21,212)
–
(2,354,075)
–
(2,354,075)
Other
$
300,709
(74,232)
–
(210,315)
(4,167,190)
(4,451,737)
–
(4,451,737)
Total
$
300,709
(7,717,663)
(286,074)
(259,194)
(4,167,190)
(12,430,121)
–
(12,430,121)
21,414,318
(2,602,657)
880,164
(633,722)
37,438,500
–
59,732,982
(3,236,379)
6,298,808
51,211
–
6,350,019
Interest income
EBITDA
Depreciation
Interest expense
Loss on derivative instruments FVPL
Segment loss for the period before tax
Income tax expense
Total loss for the period
-
(1,118,235)
(19,067)
(6,274)
-
(1,143,576)
-
(1,143,576)
-
(700,527)
(108,572)
-
-
(809,099)
-
(809,099)
732
(412,473)
-
(198,441)
(983,593)
(1,594,507)
-
(1,594,507)
732
(2,231,235)
(127,639)
(204,715)
(983,593)
(3,547,182)
-
(3,547,182)
Segment assets
Segment liabilities
Included within segment assets:
Additions to exploration and evaluation assets
10,273,678
(1,629,617)
496,918
(192,798)
5,532,294
(3,736,047)
16,302,890
(5,558,462)
6,082,749
45,773
-
6,128,522
8 Segment earnings before interest, taxes, depreciation, amortisation, impairment and gains/(losses) from financial instruments.
9 Prior year comparatives have been reclassified to enhance comparison. Prior year comparisons have also been restated to reflect
a change in accounting policy. Refer to Note 2 for further details.
77
Annual Report 2023 Note 5: Expenses
Loss before income tax includes the following specific expenses:
Finance costs
Interest on convertible notes
Interest on lease liabilities
Unwinding of the rehabilitation provision
Leases
Short term leases
Leases of low values
Director and employee benefits expense
Director and employees salaries and benefits
Bonus share expense (Note 18)
Non-executive director consultancy expenses
Defined contribution superannuation expense
2023
$
2022
$
210,315
36,151
12,728
198,441
6,275
–
104,977
5,243
18,077
–
3,531,084
543,012
184,723
46,108
630,302
–
96,000
39,912
78
Note 6: Income Tax
a.
b.
c.
d.
Income tax benefit
No income tax is payable by the parent or consolidated entities as they
recorded losses for income tax purposes for the financial year.
Numerical reconciliation between income tax benefit and pre-tax
net loss
Loss before income tax expense
Income tax calculated at 25% (2022: 25%)
Tax effect of:
Cost of equity settled awards
Sundry amounts
Section 40-880 deduction
Derivative FVPL
Future income tax benefit not brought to account
Income tax benefit
Tax losses
Unused tax losses for which no deferred tax asset has been recognised
(as recovery is currently not probable)
Potential at 25% (2022: 25%)
Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised (at 25%; 2022: 25%):
Accruals
Section 40-880 deduction
Unrecognised deferred tax assets relating to the above temporary
differences
The potential tax benefit at 30 June 2023 in respect of tax losses not
brought into account has been calculated at 25%. A rate of 25% was
applied for the year ended 30 June 2022.
2023
$
Restated
2022
$
–
–
(12,430,121)
(3,107,530)
(3,547,182)
(886,796)
158,783
(21,427)
(341,110)
1,041,797
2,269,487
–
(9,716)
9,608
(188,642)
245,898
829,648
–
10,677,565
7,551,023
15,489
341,110
356,599
7,500
188,642
196,142
79
Annual Report 2023
Note 7: Loss Per Share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
The loss and weighted average number of ordinary shares used in the
calculation of basic loss per share is as follows:
Loss for the year
Weighted average number of shares outstanding during the year used in
calculations of basic and diluted loss per share:
2023
$
(1.09)
(1.09)
Restated
2022
$
(0.36)
(0.36)
$
(12,430,121)
No.
1,138,540,254
$
(3,547,182)
No.
991,261,075
There is no dilution of shares due to options, performance rights and the convertible note, as the potential ordinary
shares are not dilutive and therefore not included in the calculation of diluted loss per share.
Note 8: Cash and Cash Equivalents
Cash at bank and on hand
2023
$
2022
$
36,645,427
36,645,427
5,730,923
5,730,923
Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. Cash at bank and on
hand includes deposits for which there is a short-term identified use in the operating cash flows of the Group
80
Note 9: Other Assets
Current
Prepayments
Land access security deposit
Office lease security deposits
Non-current
Office lease security deposits
Exploration rehabilitation bonds
2023
$
2022
$
1,007,773
1,016,591
10,623
2,034,987
249,485
1,182,807
1,432,292
127,813
–
9,684
137,497
26,367
915,525
941,892
Land access security deposit relate to amounts paid by the Group to the state government within USA for
access to commence exploration activities in areas the Group holds an exploration permit. The amounts are
currently held in a trust account until the appropriate approval has been granted. The Board expects that
approval will be granted within 12 months from reporting date.
Exploration rehabilitation bonds relate to amounts paid by the Group to the state government within USA to
commence exploration activities of areas the Group has an exploration permit. Amounts are repaid by the
state government, in tranches, following completion of any required rehabilitation activities by the Group
and inspection and approval of the rehabilitation area by the state government department.
81
Annual Report 2023
Note 10: Property, Plant and Equipment
At cost
Accumulated depreciation
2023
$
3,027,120
(794,125)
2,232,995
2022
$
940,161
(489,834)
450,327
Right of Use
Buildings
$
Motor
Vehicles
$
Plant and
Equipment
$
Mine
Properties
$
Office
Equipment
$
297,971
279,768
–
18,206
595,945
1,374,767
97,958
62,800
–
8,944
169,702
–
81,624
–
–
7,453
89,077
–
–
–
–
–
–
111,203
57,449
26,129
–
1,859
85,437
10,296
Total
$
535,002
368,697
–
36,462
940,161
1,496,266
–
–
–
543,660
–
543,660
(98,578)
29,430
1,901,564
–
6,630
176,332
–
3,480
92,557
–
9,172
664,035
–
(1,679)
94,054
(98,578)
47,033
2,928,542
210,046
2,576
86,578
30,629
–
18,301
314,925
–
1,878
35,083
70,398
2,326
–
6,552
79,276
–
–
–
–
–
50,619
333,639
8,106
127,639
–
1,825
60,550
–
28,556
489,834
204,990
34,718
4,469
24,212
17,685
286,074
(98,578)
11,578
432,915
–
1,919
71,720
–
3,167
86,912
–
384
24,596
–
1,169
79,404
(98,578)
18,217
695,547
281,020
1,468,649
134,619
104,612
9,801
5,645
–
639,439
24,887
14,650
450,327
2,232,995
Cost
As at 1 July 2021
Additions
Disposals
Exchange differences
At 30 June 2022
Additions
Remeasurement of
rehabilitation provision
Disposals/retired assets
Exchange differences
As at 30 June 2023
Accumulated
Depreciation and
impairment
As at 1 July 2021
Depreciation charge for
the year
Disposals
Exchange differences
As at 30 June 2022
Depreciation charge for
the year
Disposals/retired assets
Exchange differences
As at 30 June 2023
Net Book Value
As at 30 June 2022
As at 30 June 2023
82
Note 11: Exploration and Evaluation Assets
Total Exploration and Evaluation Assets
Reconciliation
Balance at 1 July
Items capitalised during the period
Exchange differences
Balance at 30 June
2023
$
Restated
2022
$
15,277,933
8,927,914
8,927,914
6,143,290
206,729
15,277,933
2,799,392
5,757,890
370,632
8,927,914
Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and
development of projects, or alternatively, through the sale of the areas of interest.
Items capitalised during the year to exploration and evaluation assets included $6,298,808 expenditure on
the Paradox basin project (2022: $6,082,749) and $51,211 expenditure on Australian projects (2022: $45,773).
Note 12: Financial Assets – Fair Value OCI
Non-Current
Shares in listed entities
Shares in listed entities
Opening balance
Disposals
Movements in fair value
Movements in foreign currency
2023
$
2022
$
109,348
104,165
104,165
-
10,298
(5,115)
109,348
130,594
(6,439)
(22,843)
2,853
104,165
These listed entities shares have been valued using quoted prices in active markets. The fair value of the
underlying asset is denominated in US Dollars.
The investment is classified as a Financial Asset and the Group has made an irrevocable election to account
for the equity investment at fair value through other comprehensive income.
83
Annual Report 2023
Note 13: Trade and Other Payables
Current
Trade payables
Other payables
Accruals (a)
Convertible note interest payable
2023
$
2022
$
144,948
105,313
717,793
–
968,054
1,037,054
20,031
30,000
127,611
1,214,696
Trade payables are unsecured and non-interest bearing and are normally settled on 30-to-60-day terms. The
carrying amounts approximate fair value.
(a) Included in accruals are amounts payable to related parties. Please refer to Note 22(e).
Note 14: Provisions
Current
Employee entitlements
Other provisions
Non-current
Other provisions
Rehabilitation
14 (a) Employee entitlements
2023
$
2022
$
117,607
–
117,607
10,353
664,035
674,388
134,657
10,000
144,657
–
324,349
324,349
a
b
The current provision for employee benefits includes accrued annual leave, vested sick leave and long service
leave for all unconditional settlements where employees have completed the required period of service and also
those where employees are entitled to pro-rata payment in certain circumstances.
14 (b) Rehabilitation provision
The rehabilitation provision relates to the Group’s rehabilitation obligations in the United States. In determining
the present value of the provision, assumptions and estimates are made in relation to discount rates, the
expected cost to dismantle and remove the plant from the site and the expected timing of those costs.
84
Note 14: Provisions (continued)
Reconciliation of the carrying amount of the rehabilitation provision is set out below:
At the beginning of the year
Additions
Accretion of interest
Foreign exchange differences
Balance at the end of the year
Note 15: Lease Liabilities
Lease liabilities
Balance at the beginning of the year
Additions
Accretion of interest – expense
Lease payments
Foreign exchange differences
Balance at the end of the year
The maturity profile of Lease Liabilities recognised at the end of the Financial Year is:
Due within one year
Total current
Due between one and five years
Due after 5 years
Total non-current
2023
$
324,349
313,857
12,729
(13,107)
664,035
2022
$
268,448
–
–
55,901
324,349
2023
$
2022
$
276,494
1,374,767
36,151
(220,932)
9,850
1,476,330
458,380
458,380
1,017,950
–
1,017,950
88,198
279,768
6,275
(118,452)
20,705
276,494
107,821
107,821
168,673
–
168,673
The Group has leases for its office buildings. Lease terms are negotiated on an individual basis and contain a wide
range of terms and conditions.
With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the
balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index
or a rate (such as lease payments based on a percentage of Group sales) are excluded from the initial measurement
of the lease liability and asset.
The Group classifies its right-of-use assets in a consistent manner to its property, plant and equipment (see Note
10). These are disclosed as ‘right of use buildings’ within property, plant and equipment.
85
Annual Report 2023
Note 16: Convertible Note
On 21 January 2020, the Company completed the issue of a convertible note to its strategic investor, Chia Tai
Xingye International, Zhongfan Group (Chia Tai).
The convertible note was unsecured; has a face value of US$750,000; and matured on 20 January 2023. The
convertible note had a coupon interest rate of 5% per annum. Chia Tai may convert the note into fully paid
ordinary shares at a conversion price of A$0.028 per share at any time before maturity date and the Company
may redeem the notes at any time before conversion. During the year, Chai Tai converted the note into fully paid
ordinary shares prior to the maturity date for 39,517,154 ordinary shares.
The conversion feature of the note is required to be separated from the note and is accounted for a as
derivative financial liability. The fair value of the embedded derivative at the time of issuance was $632,512 and
was recorded at a discount for purposes of accounting for the debt component of the notes. The discount is
amortised as interest expense using the effective interest method over the term of the convertible note, up to
the conversion date.
The principal amount, unamortised debt discount and net carrying amount of the liability component of the
convertible note as at year end is as follows:
Principal amount
Unamortised debt discount
Carrying value
Coupon interest expense and amortisation of debt discount for the year is as follows:
Coupon interest expense
Amortisation of debt discount
Total finance expense on convertible note
2023
$
–
–
–
2022
$
1,088,692
(179,337)
909,355
30,978
179,337
210,315
54,285
144,156
198,441
86
Note 17: Derivative Financial Liability
The Group’s derivative financial liability consists of the conversion feature of the convertible note (See Note 16).
The fair value of this conversion feature is determined using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity specific
estimates. Inputs into the valuation include share price volatility and time to expiration. At initial recognition, the
proceeds received on issue of the convertible note are split between the host debt contract and the embedded
derivative liability. The embedded derivative liability is calculated first and the residual value is assigned to the
debt host liability component.
The conversion feature derivative liability represents an embedded derivative financial instrument in the host
debt contract. The conversion feature represents the Group’s obligation to issue Anson Resources Limited shares
should the note holder exercise their conversion option. The embedded conversion derivative is carried in the
Consolidated Statement of Financial Position at its estimated fair value and adjusted at the end of each reporting
period, with any unrealised gain or loss reflected in the Consolidated Statement of Profit or Loss and Other
Comprehensive Income. During the year, the Group recognised $4,167,190 (2022: $983,593) revaluation loss in the
Consolidated Statement of Profit or Loss and Other Comprehensive Income following the conversion of the note.
The note was converted to ordinary shares during the year and as such, the financial liability at 30 June 2023 is $nil.
The fair value at year end is shown below:
Derivative financial liability (conversion feature on convertible note)
Total derivative financial liability
2023
$
2022
$
–
–
2,688,911
2,688,911
87
Annual Report 2023
Note 18: Contributed Equity
Ordinary shares - fully paid
Ordinary shares
2023
Shares
1,270,523,564
2023
$
94,856,790
2022
Shares
1,027,912,335
2022
$
37,061,281
Ordinary Shares entitle the Shareholder to participate in Dividends and the proceeds on winding up of the company
in proportion to the number of and amounts paid on the shares held. Every Shareholder of Ordinary Shares
present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one
vote. Ordinary Shares have no par value and the Company does not have a limited amount of Authorised Capital.
a. Ordinary shares
2023 movements in ordinary share capital
Balance at 1 July 2022
Issue of shares at $0.36
Conversion of notes at $0.205 (refer to Note 16)
Issue of shares on conversion of options at $0.035 each
Issue of shares on conversion of options at $0.20 each
Issue of shares on conversion of options at $0.0555 each
Employee benefits
Capital raising costs
Balance at 30 June 2023
Number
of Shares
$
1,027,912,335
138,888,889
39,517,154
57,323,269
192,970
4,328,026
2,360,921
–
1,270,523,564
37,061,281
50,000,000
8,101,020
2,001,607
38,594
240,205
543,012
(3,128,929)
94,856,790
During the year, 2,360,921 shares were issued to directors and company secretary per the 2022 AGM resolution (5
December 2022). Their valuation was based on the share price at the date of the transaction of $0.23 per share.
2022 movements in ordinary share capital
Balance at 1 July 2021
Issue of shares on conversion of options at $0.08685 each
Issue of shares in a private placement at $0.0910 each
Issue of shares on conversion of options at $0.035 each
Issue of shares on conversion of options at $0.06 each
Issue of shares on conversion of bonus options at $0.0910 each
Issue of shares on conversion of options at $0.0555 each
Issue of shares on conversion of options at $0.08685 each
Issue of shares on conversion of options at $0.035 each
Issue of shares on conversion of options at $0.08685 each
Capital raising costs (i)
Balance at 30 June 2022
894,257,642
4,400,000
80,849,693
4,293,150
10,000,000
26,273,496
671,974
653,325
52,275
6,460,780
–
1,027,912,335
26,657,184
382,140
7,357,322
150,260
600,000
2,390,888
37,295
56,741
1,830
561,119
(1,133,498)
37,061,281
(i) Included in the capital raising costs is the value of 10,000,000 options issued to the brokers which amounted to
$626,866. Refer to note 19(a).
88
Note 18: Contributed Equity (continued)
b. Share options
Information relating to the options including details of rights granted, vested and amount lapsed during the financial
year ended 30 June 2023 is set out in Note 20.
c. Performance Rights
Information relating to the Performance Rights outstanding at the end of the Financial Year, is set out in Note 20.
d. Capital risk management
The Group’s objectives when managing capital are to maintain the Company’s ability to continue as a going concern,
so that they can continue to provide returns for shareholders.
The Board reviews the capital structure on a regular basis and considers the cost of capital and the risks associated
with each class of capital. The Company will balance its overall capital structure through new share issues as well as
the issue of debt, if the need arises.
As part of the management of capital, in 2021 the Company arranged an equity funding facility of $15 million. Under
the terms of the facility, the Company may, at its discretion, call for the subscriber to subscribe for shares in the
Company at any time until 31 December 2023, up to a total placement amount of $15,000,000. Each placement
amount is up to $250,000 in any period of 20 trading days (and up to $1,500,000 with the prior consent of the
subscriber).
Shares issued to the subscriber will be priced at the average of 2 daily volume weighted average prices (VWAP) of
Company shares nominated by the subscriber from those during the 20 trading days which follow a placement
notice being given by the Company to the subscriber (but cannot be priced at less than the minimum acceptable
price specified by the Company in a placement notice). A commission of 5% will be payable by the Company at the
time of issue.
The Company raised $nil (2022: $nil) under this equity placement facility during the financial year.
89
Annual Report 2023 Note 19: Reserves
The following table shows a breakdown of the Consolidated Statement of Financial Position line item
‘Reserves’ and the movements in these reserves during the year. A description of the nature and purpose of
each reserve is provided below the table.
Share-based
payments
$
3,762,971
–
–
115,122
3,878,093
Financial
Assets –
FVOCI
$
79,867
–
10,298
–
90,165
Foreign
currency
translation
$
77,953
32,904
–
–
110,857
Total
reserves
$
3,920,791
32,904
10,298
115,122
4,079,115
3,174,968
102,710
(392,455)
2,885,223
–
–
470,408
470,408
–
626,866
(38,863)
3,762,971
(22,843)
–
–
79,867
–
–
–
77,953
(22,843)
626,866
(38,863)
3,920,791
As at 1 July 2022
Foreign currency translation of subsidiary
Revaluation of financial assets
Vesting of Performance Rights
As at 30 June 2023
As at 1 July 2021
Foreign currency translation of subsidiary
(restated)
Revaluation of financial assets
Issue of options
Vesting of Performance Rights
As at 30 June 2022
Share-based payments reserve
The share-based payment reserve is used to recognise the fair value of any options issued and performance rights
issued, but not yet exercised. Fair values at grant date are independently determined using the Black-Scholes
options pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the
Share Price at grant date, the expected probability of achieving the milestones in relation to Performance Right.
Financial Assets - FVOCI
Changes in the fair value of Equity Investments are taken to this Reserve. Amounts are not reclassified to profit or
loss when the associated assets are sold or impaired.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
90
Note 20: Share Based Payments
a. Options
There were no options granted during the year ended 30 June 2023.
During the prior year, options were granted to brokers and equity providers in consideration for services
provided in managing and assisting with raising capital. A total of 10,000,000 options were granted, refer to (b)
Note (v) below for further details.
b. Share options
2023
Balance at 1 July 2022
Issued during the year
Exercised during the year
Expired during the year
Balance at 30 June 2023
2022
Balance at 1 July 2021
Issued during the year
Note (i)
Note (ii)
Note (iii)
Note (iv)
Note (v)
–
–
–
–
–
–
–
–
–
–
57,464,575
4,328,026
36,273,496
–
–
–
(57,323,269)
(4,328,026)
(192,970)
(141,306)
–
–
–
–
36,080,526
11,514,105
10,000,000
61,810,000
5,000,000
–
–
–
–
–
36,273,496
Exercised during the year
(11,514,105)
(10,000,000)
(4,345,425)
(671,974)
Expired during the year
Balance at 30 June 2022
–
–
–
–
–
–
57,464,575
4,328,026
36,273,496
–
–
i. Unlisted options exercisable at 8.7c each on or before 16/05/22 issued as part of an equity
placement agreement. In the prior year, all options were exercised prior to expiry.
ii. Unlisted options exercisable at 6c each on or before 10/09/21 issued as part of an equity
placement agreement. In the prior year, all options were exercised prior to expiry.
iii. Listed options exercisable at 3.5c each on or before 30/06/23 issued as part of an equity
placement agreement. During the year 57,323,269 listed options were exercised and converted
into ordinary shares at 3.5c each, the remainder expired.
iv. Unlisted options exercisable at 5.55c each on or before 30/06/23 issued as part of an equity
placement agreement. All options were exercised in the current and prior period prior to expiry.
v. Listed options exercisable at 20c each on or before 31/07/23 issued as part of an equity placement
agreement and 10,000,000 of these options being issued to brokers as part of the fees for a capital
raising. During the year, 192,970 listed options were converted into ordinary shares at 20c each.
91
Annual Report 2023 Note 20: Share Based Payments (continued)
c. Performance Rights
Balance at start and end of year
2023 (No.)
2022 (No.)
21,000,000
21,000,000
Long Term Incentive Performance Rights are awarded as part of executives’ long-term incentives. There have been
no movements in the Performance Rights during the current or prior year:
Grant Date
20-Apr-18
20-Apr-18
20-Apr-18
30-Nov-18
12-Nov-19
12-Nov-19
12-Nov-19
12-Nov-19
12-Nov-19
12-Nov-19
12-Nov-19
Expiry
Date
18-Apr-25
18-Apr-25
18-Apr-25
29-Nov-23
16-Feb-27
16-Feb-27
16-Feb-27
16-Feb-27
16-Feb-27
16-Feb-27
16-Feb-27
Exercise
price $
1 July
Granted
Exercised
Expired/
forfeited
–
–
–
–
–
–
–
–
–
–
–
1,600,000
1,600,000
1,600,000
1,400,000
1,800,000
2,200,000
1,800,000
2,000,000
2,000,000
2,600,000
2,400,000
21,000,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30 June
1,600,000
1,600,000
1,600,000
1,400,000
1,800,000
2,200,000
1,800,000
2,000,000
2,000,000
2,600,000
2,400,000
21,000,000
No Performance Rights were issued during the current or prior year. The Performance Rights issued in the prior
years were for nil cash consideration and nil issue price. The vesting of the Performance Rights is conditional upon
the Group’s achievement of various performance hurdles in relation to the Group’s projects. The rights expire
on termination of an executive’s employment prior to the vesting date and or upon the failure of achievement of
performance hurdles.
Total number of
Performance Rights
Vesting Condition
1,600,000
1,600,000
1,600,000
1,400,000
1,800,000
2,200,000
1,800,000
2,000,000
2,000,000
2,600,000
2,400,000
92
Commissioning an in-field pilot plant
Securing a strategic investor to finance an on-site pilot plant program
Completion of an on-site pilot testing program
The sale or farm out of the Project Brine Project
Passing first stage batter/cathode manufacturer lithium chemical acceptance
testing
Securing an offtake agreement(s) for lithium and/or bromine chemicals
Securing funding for a full-scale production plant
Securing an offtake agreement(s) for chemical products other than lithium or
bromine.
Securing a strategic investor to finance boron, bromine and/or iodine production in
an on-site pilot plant program.
Divestment, joint venture or financing of any project
Establishing a JORC Resource for a mineral exploration project other than Project
Brine Project.
Note 20: Share Based Payments (continued)
All Performance Rights granted are over ordinary shares, which confer a right of one ordinary share per
Performance Right. The Performance Rights hold no voting or dividend rights and are not transferable. All
Performance Rights issued are to Directors of the Company as detailed in the remuneration report.
The weighted average remaining contractual life of options outstanding at the end of the financial year was 3 years
(30 June 2022: 4 years).
The assessed fair value at grant date of the Performance Rights granted in the prior years was 3.1 cents. The initial
undiscounted value of the Performance Rights is the value of an underlying share in the Company as traded on
ASX at the deemed date of grant of the Performance Right. As the performance conditions are not market based
performance conditions, no discount is applied. The value of the Performance Rights is amortised over the period
during which the respective performance hurdle may be achieved. In the event the performance hurdle is achieved
before the end of the vesting period, the remaining unamortised value is immediately expensed.
c. Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Performance rights issued (Included in director and employee benefits expense)
Options Issued
2023
$
115,122
–
115,122
2022
$
(38,864)
–
(38,864)
The probability of achievement of several milestones and timeframe of achievement is assessed by management on
an annual basis.
d. Loan Funded Share Plan Shares
The Company has established a Loan Funded Share Plan for the purposes of attracting and retaining the services
of Directors and employees of a high calibre. No shares were issued under the Plan in the current financial year
(2022: Nil). As at balance date, a total of 8,750,000 shares remain on issue under the Plan. Refer to note 22 for
further details.
93
Annual Report 2023
Note 21: Commitments and Contingencies
a. Commitments
No later than 1 year
Exploration commitments (i)
Contractors – operating (ii)
Total
Later than 1 year but not later than 5 years
Exploration commitments (i)
Contractors – operating (ii)
Total
2023
$
2022
$
211,000
5,239,021
5,450,021
520,000
–
520,000
183,000
–
183,000
832,000
–
832,000
i. The Group must meet minimum expenditure commitments in relation to option agreements over exploration
tenements and to maintain those tenements in good standing. The commitments exist at balance sheet date but
have not been brought to account. If the relevant mineral tenement is relinquished the expenditure commitment
also ceases.
ii. The Group has contractual commitments regarding purchase agreements for its operations.
b. Earn-in agreement for exploration claims:
In September 2016 the Group agreed to earn into a project comprising of 87 Placer Claims (ULI Project). Legal
agreements were completed in March 2017 with Voyageur Minerals Inc. (Voyageur) for the Group to earn up to a
70% interest in these 87 Placer Claims.
An initial 10% interest was earned upon signing the joint venture agreement and in consideration for payment of a
fee of US$75,000.
A further 40% interest was earned through completion of agreed milestones, which included defining the
location(s) for one or more drill holes, completing a NI 43-101 technical report, and expending US$666,000
(any underspent portion of which could be deferred to the next stage of the earn-in without the additional 40%
interest being affected). The achievement of these milestones increased the Group’s intertest in the 87 claims of
the ULI Project to 50%11.
At the date of this Report, the joint venture partner, Voyageur, (current holding of 50% interest) had not completed
the formalities to transfer the claims to the joint venture company as required under the agreement. The purpose
of the joint venture is to transfer Anson’s interest in the claims to Anson. The joint venture would have no income,
expenses, assets or liabilities in the current or prior periods. This has not had any impact on this financial report.
d. Contingent liabilities
The are no contingent liabilities as at 30 June 2023.
11. Anson commenced with a 10% interest in these 87 claims which increased to 50% from the work done and may be subject to
finalisation under the terms of the agreement to earn-into the ULI Project.
94
Note 22: Related Party Disclosure
a. Subsidiaries
The consolidated financial statements include the financial statements of Anson Resources Limited and the
subsidiaries listed in the following table:
Name
Tikal Minerals SA (i) (iii)
Rhodes Resources Pty Ltd (iii)
Western Cobalt Pty Ltd (iii)
A1 Lithium Inc.
Paradox Lithium LLC (iii) (iv)
Blackstone Resources Inc (ii) (iii)
State Exploration Pty Ltd (iii)
Country of
Incorporation
Guatemala
Australia
Australia
USA
USA
USA
Australia
%
Equity Interest
2023
%
Equity interest
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
i. One share owned by Bruce Richardson, Executive Chairman and CEO, beneficially held on behalf of
Anson Resources Limited. 4,999 shares held by Anson Resources Limited directly.
ii.
Incorporated 15 November 2018.
iii. Dormant entities
iv. Paradox Lithium LLC was setup to facilitate the joint venture with Voyageur (refer to note 21).
b. Ultimate parent
Anson Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
c. Key management personnel (KMP)
Refer to Note 23 for details of compensation to key management personnel and (e) below for receivable at year-end.
There were no other transactions with KMPs or their associated entities during the year and in the prior year.
d. Transactions with related parties
There were no transactions with related parties during the current or previous financial year.
95
Annual Report 2023 Note 22: Related Party Disclosure (continued)
e. Receivable from and payable to related parties
Current payables:
Payable to Director, Bruce Richardson
2023
$
2022
$
313,594
–
All transactions were made on normal commercial terms and conditions and at market rates.
f. Loan funded share plan
The Company has issued shares to key management personnel under a loan funded share plan. The grant of these
securities is accounted for as a share based payment with the value having been calculated using a Black-Scholes
option pricing model at the date of issue. Notwithstanding the accounting treatment of the loan funded share plan
as an option, the shares are restricted and can only be released upon the holder paying the loan attached to the
shares.
On 27 February 2014, the Company issued 3,000,000 shares at 1.4 cents per share to Key Management Personnel
(KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company held on 28
November 2013.
On 10 December 2014, the Company issued 5,000,000 shares at 1.3 cents per share to Key Management Personnel
(KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company held on 26
November 2014.
On 21 December 2015, the Company issued 4,250,000 shares at 0.9 cents per share to Key Management Personnel
(KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company held on 27
November 2015.
The cost of the loan funded share plan is recognised as a share-based payment expense. The terms of the loans
are:
• Term of loan: 10 years.
•
Interest rate: 8% per annum.
• Lien: The Company shall have a lien over the shares until the loan is repaid and the Company shall be entitled to
sell the shares in accordance with the terms of the Employee Share Plan if the loan is not repaid when due.
• Payments in relation to shares: Any dividends or capital returns in relation to the shares shall be applied against
repayment of the loan.
• Proceeds of sale: In the event of sale of the shares all sales proceeds shall be applied against repayment of the
loan.
Limit of liability: The liability of the employee to repay the loan is limited to the payments received by the employee
in relation to the shares and any proceeds from the disposal of the shares. From the inception of the loan funded
share plan no shares have been issued.
96
Note 23: Compensation For Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
Refer to the Remuneration Report for further information.
Note 24: Events After Balance Date
2023
$
2,745,396
11,048
115,122
2,871,566
2022
$
848,154
7,272
(38,864)
816,562
On 18 July 2023, Anson announced it entered into an agreement to acquire a lithium brine project from Legacy
Lithium Corp. in the Paradox Basin for US$1,000,000 and 15,060,981 ordinary shares in the Company. This
strategic acquisition will result in the Paradox Lithium Project becoming one contiguous mineralised block. The
transaction is subject to Legacy Lithium Corp. shareholder approval and is expected to be completed on the 29th
of September 2023.
On 13 September 2023, Anson completed the acquisition of a strategic land package at the Green River project
area. All conditions for the sale and purchase were met on this date and Anson paid US$2.4 million to the vendor.
Other than the above there has not arisen in the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of
the Company, to affect significantly the operations of the Group and the results of those operations.
Note 25: Auditor’s Remuneration
Amounts received or due and receivable by the auditors for:
Audit and review of the financial reports of the Group
2023
$
75,000
75,000
2022
$
59,949
59,949
97
Annual Report 2023
Note 26: Financial Risk Management
The Group’s financial instruments are not complex. Its activities may expose it to a variety of financial risks in the
future: market risk (including currency risk and fair value interest rate risk), credit risk, liquidity risk and cash flow
interest rate risk. At that stage the Group’s overall risk management program will focus on the unpredictability of
the financial markets and seek to minimise potential adverse effects on the financial performance of the Group.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. Management is responsible for developing and monitoring the risk management policies
and reports to the Board.
The Group holds the following financial instruments:
Note
Fair value
through
OCI
$
Amortised
cost
$
Fair value
through
profit &
loss
$
–
–
–
109,348
109,348
38,645,427
–
2,459,506
–
41,104,933
–
–
–
104,165
104,165
5,730,923
10,171
951,576
–
6,692,670
Total
$
38,645,427
–
2,459,506
109,348
41,214,281
5,730,923
10,171
951,576
104,165
6,796,835
968,054
1,476,330
–
–
2,444,384
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
968,054
1,476,330
–
–
2,444,384
–
–
–
–
–
–
–
–
–
–
1,214,696
276,494
909,355
–
2,400,545
–
–
–
2,688,911
2,688,911
1,214,696
276,494
909,355
2,688,911
5,089,456
Financial assets
2023
Cash and cash equivalents
Trade and other receivables
Other assets – deposits and bonds
Financial assets – fair value OCI
2022
Cash and cash equivalents
Trade and other receivables
Other assets – deposits and bonds
Financial assets – fair value OCI
Financial liabilities
2023
Trade and other payables
Lease liabilities
Convertible note
Derivative financial liability
2022
Trade and other payables
Lease liabilities
Convertible note
Derivative financial liability
98
8
9
12
8
9
12
13
14
16
17
13
14
16
17
Note 26: Financial Risk Management (continued)
a. Market risk
Interest rate risk
Interest rate risk is the risk that the Group’s financial position and performance will be adversely affected by
movements in interest rates.
The Group receives interest on its cash management accounts based on daily balances at variable rates. The
Group’s operating accounts do not attract interest. Interest rate risk on cash and short-term deposits is not
considered to be a material risk due to the short-term nature of these financial instruments.
At reporting date the interest rate profile of the Group’s interest bearing financial instruments was:
Fixed rate instruments
Financial liabilities
Cash flow sensitivity analysis for variable rate instruments
2023
$
2022
$
1,476,330
1,185,849
With all other variables held constant, the Group’s profit before tax and equity are affected through the impact of
floating and/or fluctuating interest rates on cash, receivables, borrowings and financial instruments as follows:
1% +/- reasonably possible change in interest rates
2023
$
386,454
2022
$
57,309
The Board assessed a 1% movement for the sensitivity analysis based on the currently observable market
environment.
99
Annual Report 2023
Note 26: Financial Risk Management (continued)
Foreign currency risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are
denominated in a currency that is not the entity’s functional currency. The Group is exposed to foreign exchange
risk arising from currency exposures to Australian Dollar (AUD) and United States Dollar (USD), arising from the
purchase of goods and services and receivables. The Group does not currently undertake any hedging of foreign
currency items.
The Group had the following exposure to US$ foreign currency expressed in A$ equivalents, which are not
designated as cash flow hedges:
Cash and cash equivalents
Other assets
Financial assets OCI
Trade and other payables
Lease Liabilities
Net balance sheet exposure
Sensitivity analysis
2023
$
1,328,302
1,993,868
109,348
(693,577)
(1,146,575)
1,591,366
2022
$
330,981
941,892
104,165
(930,845)
(252,118)
194,075
A 10% strengthening of the Australian dollar against the above currencies at 30 June would have increased
(decreased) profit before income tax and equity by the amounts shown below. This analysis assumes that all
other variables remain constant. The analysis is performed on the same basis for 2022. The sensitivity of equity is
calculated by considering the effect of any associated financial assets classified as fair value OCI.
The following table illustrates sensitivities to the Group’s exposures to exchange rates:
Year ended 30 June 2023
10% +/- reasonably possible change in US$ (vs AUD)
Year ended 30 June 2022
10% +/- reasonably possible change in US$ (vs AUD)
b. Credit risk
2023
$
2022
$
148,202
159,137
8,991
19,408
The Group is not exposed to any significant credit risk. Cash transactions are limited to high credit quality financial
institutions.
100
Note 26: Financial Risk Management (continued)
c. Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the Group’s remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows
disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in
the statement of financial position.
For the year ended 30 June 2023
Trade and other payables
Lease liabilities
Derivatives and convertible note
Total as at 30 June 2023
For the year ended 30 June 2022
Trade and other payables
Lease liabilities
Derivatives and convertible note
Total as at 30 June 2022
Within 12
months
$
Between 1
and 5 years
$
Over
5 years
$
Carrying
Amount
$
(968,054)
(458,380)
–
–
(1,017,950)
–
(1,426,434)
(1,017,950)
(1,214,696)
(107,821)
(3,598,266)
(4,920,783)
–
(168,673)
–
(168,673)
–
–
–
–
–
–
–
–
(968,054)
(1,476,330)
–
(2,444,384)
(1,214,696)
(276,494)
(3,598,266)
(5,089,456)
101
Annual Report 2023 Note 27: Cash Flow Information
i. Reconciliation of loss after income tax to net cash flows from operating activities:
Loss for the year
Adjustments for:
Depreciation
Loss on derivative instrument FVPL
Non-cash employee benefits expense
Share based payments
Bonus shares issued
Interest income
Non-cash interest expense
Unrealised foreign exchange differences
Changes in operating assets and liabilities:
Decrease in trade and other receivables
(Increase) /Decrease in other assets (current)
Increase /(Decrease) in trade and other payables
Increase/(decrease) exploration bond
Increase/(decrease) security deposit
Increase in provisions
Net cash outflow from operating activities:
ii. Changes in liabilities arising from financing activities:
2023
$
Restated12
2022
$
(12,430,121)
(3,547,182)
286,074
4,167,190
127,639
983,593
115,122
543,012
(300,709)
223,042
(6,954)
(7,403,344)
10,171
(1,897,490)
(119,031)
(267,282)
(223,118)
(16,697)
(9,916,791)
(38,864)
–
(732)
204,716
550,625
(1,720,205)
11,295
(379,907)
818,601
–
–
53,529
(1,216,687)
Lease liabilities
Convertible note
Total liabilities from financing activities
Lease liabilities
Convertible note
Total liabilities from financing activities
1 July
2022
276,494
909,355
1,185,849
New
Leases
1,374,767
–
1,374,767
1 July
2021
88,198
674,113
762,311
New
Leases
279,768
–
279,768
Cash
Flows
(220,932)
–
(220,932)
Cash
Flows
(118,452)
–
(118,452)
Other
30 June
2023
1,476,330
46,001
(909,355)
–
(863,354) 1,476,330
Other
26,980
235,242
262,222
30 June
2022
276,494
909,355
1,185,849
The ‘Other’ column includes the effect of foreign exchange movements and the accrued but not yet paid interest on
interest-bearing loans and borrowings. The Group classifies interest paid as cash flows from operating activities.
12 Prior year loss has been restated to reflect a change in accounting policy. Refer to Note 2.
102
Note 28: Parent Entity Information
a. Information relating to Anson Resources Limited
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total shareholders’ equity
b. Guarantees
2023
$
Restated
2022
$
(19,597,034)
(19,597,034)
(8,727,214)
(8,727,214)
2023
$
37,358,242
41,357,983
(367,824)
(633,723)
40,747,260
94,856,790
3,968,258
(58,100,788)
40,747,260
Restated
2022
$
5,515,145
6,329,209
(3,926,131)
(3,928,845)
2,400,364
37,061,281
3,842,837
(38,503,754)
2,400,364
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022.
c. Commitments
Commitments of the Company as at reporting date are disclosed in Note 21 to the financial statements.
d. Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
e. Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except
for the following:
•
•
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
• Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be
an indicator of an impairment of the investment.
103
Annual Report 2023
Note 29: Fair Value Measurement
Fair value hierarchy
The following table details the Group’s assets and liabilities, measured or disclosed at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date.
• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
• Level 3: Unobservable inputs for the asset or liability.
The following table details the Group’s assets and liabilities measured or disclosed at fair value as at 30 June 2023
and 30 June 2022.
2023
Assets
Financial Assets - FVOCI
Total assets
Liabilities
Derivative Liability
Total liabilities
2022
Assets
Financial Assets - FVOCI
Total assets
Liabilities
Derivative Liability
Total liabilities
Level 1
$
Level 2
$
Level 3
$
Total
$
109,348
109,348
–
–
104,165
104,165
–
–
–
–
–
–
–
–
2,688,911
2,688,911
–
–
–
–
–
–
–
–
109,348
109,348
–
–
104,165
104,165
2,688,911
2,688,911
Estimates of fair value take into account factors and market conditions evident at balance date. Uncertainty and
changes in global market conditions in the future may impact fair values in the future.
Transfers between level 1 and 3
There were no movements between different fair value measurement levels during the financial year (2022: none).
104
105
Annual Report 2023 3.6
Directors’ Declaration
1. In the opinion of the Directors:
a. the consolidated financial statements and notes of the Group are 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
performance for the year ended 30 June 2023; and
ii. complying with Accounting Standards and Corporations Regulations 2001;
iii. the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board; and
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.
2. This declaration has been made after receiving the declarations required to be made to the Directors
in accordance with Section 295A of the Corporations Act 2001 for the year ended 30 June 2023.
This declaration is signed in accordance with a resolution of the Board of Directors.
Bruce Richardson
Executive Chairman and CEO
28th September 2023
106
3.7
Independent Auditors Report
107
Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANSON RESOURCES LIMITED Report on the Audit of the Financial Report Our Opinion We have audited the financial report of Anson Resources Limited (the Company) and its subsidiaries (the Group) which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2023 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (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 same time of this 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. Annual Report 2023 3.7
Independent Auditors Report
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Key Audit Matters How these matters were addressed in the audit Restatement of Comparative Information As disclosed in Note 2 of the consolidated financial statements, the prior period comparative information has been restated as a result of the change in accounting policy relating to the Group’s Exploration and Evaluation Assets. We consider this to be a key audit matter due to the judgment involved in determining the basis for the change in accounting policy, the time expended on auditing this change in accounting policy, (including ascertaining whether the change results in the consolidated financial statements providing more relevant information about the effects of transactions, other events or conditions on the Group’s consolidated financial position, financial performance and cashflow). Inter alia, our procedures included the following: ▪ Obtaining an understanding of the nature and changes to the accounting policy in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (“AASB 108”) and the reasons why applying the new accounting policy provides more relevant information; ▪ Examining the related supporting documents, sub-ledgers, reconciliations, calculations and accounting records relating to the restatement and ensuring that the restated data of the previous year were consistent with the relevant accounting policy; ▪ Checking whether all the necessary information on restatements was disclosed in the notes to the consolidated financial statements in accordance with AASB 108; and ▪ Assessing the appropriateness of the disclosures in Note 2 in relation to the change in accounting policy. Carrying value of the Exploration and Evaluation Assets As at 30 June 2023, exploration and evaluation assets amounted to $15,277,933 (refer to Note 11). The carrying value of the exploration and evaluation asset is a key audit matter due to: ▪ the significance of the total balance (26% of the total assets); ▪ the level of judgment required in evaluating management’s application of the requirements of AASB 6 Exploration for an Evaluation of Mineral Resources; and ▪ the greater level of audit effort to evaluate the Group’s application of the requirement of AASB 6 and assessment of impairment indicators which involved management judgment. Inter alia, our audit procedures included the following: ▪ Assessing the management’s determination of its areas of interest to ensure consistency with the definition in AASB 6; ▪ Assessing the Group’s accounting policy for compliance with AASB 6; ▪ Agreeing, on a sample basis, the capitalised exploration and evaluation expenditure incurred during the year to supporting documentation and assessing that these expenditures incurred in accordance with the Group’s accounting policy and the requirements of AASB 6; ▪ Obtaining evidence that the Group has valid rights to explore in the areas represented by the capitalised exploration and evaluation expenditure; ▪ Evaluating that there had been no indicators of impairment during the current period with reference to the requirements of AASB 6; and ▪ Assessing the appropriateness of the disclosures in Note 2 in relation to the change in accounting policy for exploration and evaluation assets and Note 11. 109
Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2023 but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. 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. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Annual Report 2023 3.7
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We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit. The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 46 to 56 of the directors’ report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Anson Resources Limited for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 28 September 2023 3.8
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere
in this report is as follows. The information is current as at 28 September 2023.
A. Distribution of Equity Securities
Ordinary share capital
• 1,270,678,188fully paid ordinary shares are held by 8,271 individual shareholders. All issued fully paid ordinary
shares carry one vote per share and carry the rights to dividends.
The number of shareholders by size of holding are:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – Over
Total
B. Substantial Shareholders
Ordinary shareholders
CHIA TAI XINGYE INTNL
Holders
Units
189
1,335
1,447
3,876
1,424
8,271
27,102
4,517,429
11,487,023
148,381,279
1,106,265,355
1,270,678,188
%
0.00%
0.36%
0.90%
11.68%
87.06%
100.00%
Number
167,017,154
%
13.24%
111
Annual Report 2023 3.8
ASX Additional Information
C. Twenty Largest Shareholders
Ordinary shareholders
CHIA TAI XINGYE INTERNATIONAL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR BASSAM OTHMAN
BNP PARIBAS NOMS PTY LTD
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