CORPORATE DIRECTORY
ANNUAL REPORT
For Year Ended 30 June 2022
ARTEMIS RESOURCES LIMITED
ACN 107 051 749
Artemis Resources Limited Annual Financial Report 2022
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CORPORATE DIRECTORY
Directors
Share Registry
Mark Potter (Non-Executive Chairman)
Alastair Clayton (Executive Director)
Edward Mead (Non-Executive Director)
Daniel Smith (Non-Executive Director)
Simon Dominy (Non-Executive Director)
Vivienne Powe (Non-Executive
Director)
Guy Robertson (Executive Director)
Automic Registry Service
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Web: www.automicgroup.com.au
Company Secretary
Bankers
Guy Robertson
Westpac Limited
Royal Exchange
Corner Pitt & Bridge Streets
Sydney NSW 2000
Registered Office
Auditors
Level 8, 99 St Georges Terrace
Perth WA 6000
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Telephone: +61 8 9486 4036
Email: info@artemisresources.com.au
Web: www.artemisresources.com.au
Telephone: +61 8 9227 7500
Facsimile: +61 8 9227 7533
Nominated Adviser and
Broker
WH Ireland Limited
Telephone: +44 20 7720 1666
Principal Office
Ground Floor, 1 Centro Avenue
Subiaco WA 6008
Telephone: +61 8 6261 5463
Securities Exchange Listing
Australia Securities Exchange Limited
(ASX/AIM: ARV)
OTC Markets Group (OTCQB: ARTFF)
Frankfurt Stock Exchange (Frankfurt:
ATY)
Artemis Resources Limited Annual Financial Report 2022
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TABLE OF CONTENTS
CHAIRMAN’S LETTER
OPERATIONS REPORT
TENEMENT SCHEDULE
CORPORATE GOVERNANCE
DIRECTORS’ REPORT
REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS DECLARATION
INDEPENDENT AUDITOR’S REPORT
ASX ADDITIONAL INFORMATION
3
4
35
37
38
44
51
52
53
54
55
56
94
95
99
Artemis Resources Limited Annual Financial Report 2022
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CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of the Directors of Artemis Resources Limited, I am pleased to report on the activities
of the Group for the year ended 30 June 2022.
The Group continues to focus on its core projects, the Paterson Central gold and copper
project and the Carlow Castle gold, copper and cobalt project, in the Pilbara region of
Western Australia.
Artemis’ 100% owned Paterson Central gold and copper project covers 605km2 and is located
approximately 40km east of Newcrest Mining’s multi-million-ounce Telfer Gold-Copper mine
and is contiguous to the Havieron gold and copper discovery by Greatland Gold Plc. A
number of compelling magnetic and gravity anomalies have been identified by the Artemis
exploration team which are now being systematically drill tested. Drilling at Paterson during
the period focused on the Apollo and Atlas targets, with planning well advanced for drill
testing the Enterprise, Juno and Voyager targets. The Artemis team continues to be optimistic
in its assessment of the prospects of the Paterson project and continues its exploration drill
campaign in earnest.
At Carlow Castle, a further 24,641m of RC and diamond drilling was completed during the
period. Drill results continued to expand the high grade gold-copper footprint of the deposit,
in particular to the North and at depth. The high grades of gold and copper received from
drill results were particularly welcome especially in an environment of high cost inflation. An
updated resource estimate is expected to be completed shortly. Substantial exploration
potential on a regional level remains at the Carlow Castle Project which will be further
investigated over the coming months.
During the year the Company completed its programme of disposing of non-core assets. In
particular, the spin-off of non-core base metals assets into GreenTech Metals Limited (ASX:
GRE) which raised $5m on a successful ASX IPO in January 2022 was a successful endeavour,
as well as the completion of the sale of the 70% interest in the Munni Munni PGM project to
AIM listed Alien Metals (AIM: UFO) for $4.9m in March 2022.
In February 2022, the Company successfully completed a secondary listing on the AIM market
of the London Stock Exchange and raised £5m. This listing provides more scope for London
and European based institutional and retail investors to invest in Artemis and is expected to
increase liquidity.
In July 2022, the Company welcomed Vivienne Powe as a Non-Executive Director. Vivienne is
a metallurgical engineer and highly experienced senior executive with a strong track record
of creating shareholder value in top tier, global mining and oil & gas companies.
I would like to take this opportunity to thank my fellow directors, the Artemis team and our
shareholders for their ongoing commitment and support as we strive for a successful year
ahead.
Mark Potter
Chairman
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
Artemis Resources Limited (“Artemis” or the “Company”) is pleased to outline the progress the
Company has made at its projects for the financial year ended 30 June 2022. Artemis is a gold and
copper focused resources company with two major projects, Paterson Central and Greater Carlow
Castle, both located in the Pilbara region of Western Australia, as shown in Figure 1. The Company
owns 100% of Paterson Central and Greater Carlow and also owns 100% of the strategically located
Radio Hill processing plant (on care and maintenance) and associated infrastructure, located
approximately 30km south of Karratha.
Figure 1: Project map highlighting Artemis’ Greater Carlow Castle project in the West Pilbara and the location of the Paterson
Central Tenement in the East Pilbara.
During the financial year, the Company made significant progress with its Paterson Central and
Greater Carlow Castle projects. All this work was completed despite a very challenging setting of
Covid restrictions, acute industry wide personnel and rig shortages and extensive assay turnaround
times.
The following review is an update and summary of the key work programs completed during the
current financial year, with a breakdown of the drilling statistics by Project for the year included in
Table 1.
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OPERATIONS REPORT
Table 1: Drilling Statistics by Project
Project
Hole Count by Drill Type
Drilled (m)
Samples Receipted
409.7
2,137.9
2,547.6
24,372.4
269.3
24,641.7
872
28,082
Paterson
RC precoll
Carlow
DD
Totals
RC
DD
Totals
Total holes drilled
Total Metres drilled
Total Samples Collected
4
4
4
105
2
107
111
27,189.3
28,954
PATERSON CENTRAL GOLD-COPPER PROJECT
Background to the Paterson Central Project
The Paterson Central Gold-Copper Project covers ~605 km2 and is located in the Yaneena Basin of the
Paterson Province, which hosts large scale mineral deposits, such as the World class Telfer Gold-
Copper Mine, recently discovered Winu copper-gold deposit, Nifty Copper Mine, and the rapidly
growing Havieron gold and copper deposit. Figure 2 shows the location of major deposits in the
region along with Havieron. Artemis’ tenement is highlighted in yellow and is strategically positioned
in relation to the Havieron deposit.
Figure 2: Paterson Central Tenement E45/5276 (yellow
outline) overlying main geological units, and showing
locations of major gold and base metal deposits. Green;
Anketell Sediments, Blue; Paterson Formation, Dark Brown
d T
Y
F
ti
i
l di
I d ll
d T lf
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OPERATIONS REPORT
The Company’s Paterson Central project forms a 100% owned exploration tenement E45/5276, which
surrounds the Havieron gold deposit on three sides, and covers the same continuous geological
domain as shown in Figure 3.
The geology of the project area consists of Canning Basin sediments, primarily Permian siltstones in
this part of the basin, which overlie Proterozoic meta-sedimentary basement rocks which form the
main host rocks to large mineral deposits in the region. The sedimentary cover is 300m thick in the
western part of the project area and is interpreted to deepen to over 800m in the far east. The
Havieron gold and copper deposit is associated with a strong magnetic anomaly and sits under about
450m of Permian sedimentary cover.
Mineralisation at Havieron is an ovoid shaped zone of variable brecciation, alteration and sulphide
mineralisation with dimensions of 650m x 350m trending in a northwest orientation. Mineralisation in
this system extends 1,200m below the base of sedimentary cover and continues to remain open at
depth. The Company is exploring the Paterson Central Project for both Havieron and Telfer styles of
gold and copper mineralisation.
Summary of Geology at Paterson Central
The procedure for targeting and drill planning has been to follow structural trends in Neoproterozoic
bedrock, sitting below thick Permian cover sediments, interpreted from geophysical data sets,
including a deep penetrating 2D seismic reflection survey line acquired for oil and gas exploration in
the 1980s by BHP, and subtle gravity and magnetic highs from features occurring below the
sedimentary cover.
Figure 3 shows how the interpretation of geological structures occurring in bedrock below the
Canning Basin Permian siltstone cover has likely identified a non-magnetic and low density granitic
intrusive body, which would have likely been intruded during the regional Crofton Granite event (650-
600 Ma).
Figure 3: Paterson Central Tenement E45/5276 (yellow outline), interpreted bedrock geology units and structures, on top of a
merged magnetic anomaly image and location of 2D seismic reflection survey line. Nimitz Prospect as marked as red, was
previously drilled in 2020.
This interpreted NW-SE trending granitic intrusion is in close proximity to Havieron and could be the
main source of heat for driving hydrothermal alteration and local skarn-like metamorphism
associated with gold and copper mineralisation. Low angle, west-dipping thrust faults and late brittle
cross faults have also been interpreted in the 2D seismic reflection data as well as in both gravity and
magnetic data sets to offset folded Neoproterozoic (850-820 Ma) metasediments of the Lamil Group.
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OPERATIONS REPORT
This years’ exploration activity at Paterson Central commenced to the north of Havieron at the Atlas
and Apollo Prospect areas. Collar positions are shown in Figure 4.
Figure 4: Location of drill collars at Apollo and Atlas in relation to the Havieron deposit.
These drill holes were planned to test the various magnetic and gravity anomalies and had
encountered a variety of rock types and encouraging geological units including granodiorites,
diorites gabbros and associated breccias and veining. Typical alterations styles included very intense
silica–calcite–chlorite–actinolite +/- biotite with abundant pyrite and minor chalcopyrite in veins,
halos and minor breccia infill. Figures 5 and 6 show some of the styles of breccia encountered in the
drilling of Apollo.
The drill holes had encountered encouraging geology indicating that the Apollo and Atlas areas are
well located for making a discovery with further drilling.
Figure 5: GDRCD007 - 547m, example of a large quartz calcite vein in altered diorite with semi-massive sulphides pyrite +/-
chalcopyrite as well as chlorite actinolite infill and alteration halo.
Figure 6: GDRCD007 - 559m, example of a quartz qalcite vein in altered diorite with pyrite +/- chalcopyrite, chlorite ‘jigsaw’
infill.
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OPERATIONS REPORT
Artemis is now focussing on testing its 6 higher priority drill targets with the intention to execute about
8,000m of diamond drilling to test these targets during the 2022 -2023 field season.
CARLOW CASTLE GOLD-COPPER-COBALT PROJECT
The Carlow Castle gold, copper and cobalt project is located in the West Pilbara region of Western
Australia, ~45 km by road east of the city of Karratha (Figure 7). Access is via the Northwest Coastal
Highway and then by the unsealed Cherratta public road, which passes through the Project area.
Carlow Castle is on the granted exploration license E47/1797 and is ~35 km from Artemis’ 100% owned
Radio Hill Processing Plant.
Figure 7: West Pilbara project map highlighting Artemis’ current tenement holdings.
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
Following a multifaceted strategy, multiple drilling campaigns at Carlow Castle have returned several
significant results, which continues to highlight the potential of the deposit. The Main Carlow Castle
zone returned positive results especially from the Crosscut Zone, where the majority of the drilling
during the year was completed.
Additional holes on the Quod Est Zone have further extended this high-grade mineralised shoot at
depth.
Targeting geophysical anomalies, drilling discovered the new Crosscut Zone that lies east of Quod Est
and to the north of the Main Eastern Zone by approximately 300m.
During the report year, a total of 106 holes were drilled for 24,641.3 metres of which two holes for 269.3
metres was diamond and 104 holes for 24,372 metres was RC. A total of 28,316 samples were
collected, which included QAQC samples as well. Table 3 below summarised the breakdown of
drilling according to prospects, with Figure 8 showing the prospect locations in relation to Carlow
Castle.
Table 2: Number of holes and drilled metres for the various prospects at Carlow tenement E47/1797
PROSPECT
NO OF HOLES
RC (M)
DIAMOND (M)
CARLOW EAST
CARLOW WEST
CARLOW EASTERN REGIONAL
CHAPMAN
MARILLION
QUOD EST
THORPE
CROSSCUT ZONE 1
CROSSCUT ZONE 2
CROSSCUT ZONE 3
TOTALS
13
17
1
19
1
5
8
27
11
4
106
3776
3822
198
4714
210
766
2017
5465
2588
816
132.9
136.4
SAMPLES
RECEIPTED (INCL
QAQC)
4202
4044
178
5284
234
933
2489
6636
3322
994
24,372
TOTAL METRES
DRILLED
269.3
28,316
24,641.3
Figure 8: Location of drill collars in the various prospects within the Carlow tenement E47/1797.
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OPERATIONS REPORT
The additional drilling completed during the year has significantly added crucial information
regarding the structural, alteration and mineralogical controls at Carlow Castle. The new
interpretation and modelling for Carlow has allowed for accurate target generation, which has been
instrumental to improving the ounce discovered per metre drilled.
Carlow Castle Program
Crosscut Zones
The Crosscut Zone (XCZ) is defined by a series of parallel NW structure, hosting en echelon dilation
structures that host mineralisation. The recent drilling in this area has indicated that these dilation
features are striking north-south and have steep dips, usually to the east. Drilling had intersected
significant sulphide zones at interpreted pierce point target zones at Crosscut, which is an
encouraging result with respect to the interpretation of the model. Drill collar locations are shown in
Figure 9.
Figure 9: Location of drill holes at Crosscut and section lines. Note that only holes ARC403 and ARC404 were completed
during the quarter period. Other holes are referenced in section figures.
A diamond hole, 22CCRD008 was drilled in response to the high-grade intersection in ARC344 which
returned 22m @ 2.23g/t Au, 1.39% Cu, 0.457% Co from 247m (refer to ASX Announcement 19th
November, 2021). Significant results for 22CCRD008 are shown in Table 3 with the section showing
the mineralised intervals shown in Figure 10.
Table 3: Significant intersections for diamond hole 22CCRD008, based on >0.3% Cu, 2m internal dilution.
SIGNIFICANT MINERALISED INTERSECTION FOR 22CCRD008
refer to ASX announcement 11th of July 2022
3.72m @ 0.32% Cu, 0.07g/t Au, 0.032% Co, from 233.06m
16.6m @ 2.73% Cu, 1.19g/t Au, 0.049% Co, from 255.8m
Incl; 1.18m @ 15.65% Cu, 5.4g/t Au, 0.09% Co, from 256.84m
Incl; 3.14m @ 6.38% Cu, 3.61g/t Au, 0.059% Co, from 265.92m
3.09m @ 0.58% Cu, 0.29g/t Au, 0.03% Co, from 285.79m
2.2m @ 0.43% Cu, 0.16g/t Au, 0.031% Co, from 305.69m
6.01m @ 0.68% Cu, 0.63g/t Au, 0.176% Co, from 309.42m
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OPERATIONS REPORT
The mineralisation style encountered in hole 22CCRD008 is quartz-carbonate infill breccias and
veining with sporadic agglomerations of sulphides and massive sulphide infills. The visible sulphides
include chalcopyrite, pyrrhotite and pyrite. These are shown in Figure 11 and Figure 12.
Figure 10: Section 9,960mE showing significant intersections for hole 22CCRD008. High grade intersections for ARC344
included for comparisons. Hole ARC392 drilled updip from the massive sulphide occurrence is pending assay results. Refer to
Figure 8 for section location.
Figure 11: Part of the upper zone of the broader 16.6m showing the massive sulphide interval with brecciated upper contact
which returned a result of 1.18m @ 15.65% Cu, 5.40g/t Au, 0.090% Co from 256.84m.
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OPERATIONS REPORT
Figure 12: 22CCRD008 (263-273.5m) lower interval of significant vein hosted sulphide forming part of the broader 16.6m
interval with a significant grade of 3.14m @ 6.38% Cu, 3.61% Cu, 0.059% Co from 265.92m
Mineralisation continues untill end of hole, as shown in Figure 13. The hole was not continued as
driller had run out of rods.
Figure 13: 22CCRD008 mineralisation occurrence at EOH 315.3m.
Two additional holes, ARC387 and ARC389 drilled on section 9,920mN Loc (40m to the south of
22CCRD008) have intersected mineralisation near the proposed pierce points. These holes are
shown in Figure 14.
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OPERATIONS REPORT
Figure 14: Section 9920mE looking Northwest showing additional holes that had intersected mineralisation 40m to the south of
section 9960mE. This shows the continuation of what is the massive sulphide interval to the south through the sections. The
intersection of 4m @ 1.02% Cu, 0.76g/t Au, 0.016% Co from 135m occurs in the Crosscut 2 zone. Refer to Figure 8 for section
location.
NORTHERN EXTENSION OF CROSSCUT
The mineralised structure of Crosscut is known to extend and continue to the northwest and a series
of holes were drilled to test the structure.
Six holes to the north (ARC363 to 365 and ARC395 to 397) were drilled based on extending the
Crosscut mineralisation to the north from the high-grade intersections encountered in hole ARC366
and ARC367 which returned grades of 8m @ 2.35% Cu, 5.01g/t Au, 0.400% Co from 80m and 8m @
0.98% Cu, 1.08g/t Au, 0.020% Co from 167m, respectively as shown in Figure 15, with Figure 16 showing
a cross section.
Holes ARC363, 364 and 365 encountered massive basalts and returned no significant results.
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OPERATIONS REPORT
Figure 15: Showing the location of the holes to test the mineralisation to the north. ARC403 encountered sulphides but assays
are pending. Interpretation of the magnetics have identified similar NW structures to the west and NW along strike. These are
north of the cataclasite ridge which is considered prospective for mineralisation.
Figure 16: Section through 10,200mE Local Grid showing high-grade intersections for ARC366 and ARC376. Refer to Figure 15
for section location.
Logging of holes ARC395, 396 and 367 showed that the NE holes encountered a major fault zone and
intersected pelites and black shales. Hole ARC395 showed presence of sulphides associated with
fuchsite with silicification and sericite alteration.
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OPERATIONS REPORT
An additional hole ARC403 intersected sulphides (Figure 17) consistent with those in the high-grade
zones to the south, meaning that the mineralised envelops had ‘stepped’ over to the west, in true
en echelon form.
Figure 17: Sulphide occurrence in ARC403 comprising pyrite and pyrrhotite.
Not only is it common for mineralised structures to anastomose downdip, they also tend to stagger
or step sideways within the confined margins of the NW zones.
It appears that the Crosscut Zone is copper-rich, with zones of higher-grade Au. Table 4 shows the
results for the Crosscut Zone.
Table 4: Significant assay results for the Crosscut Zone for drill holes received during the reporting period.
SIGNIFICANT MINERALISED INTERSECTION FOR CROSSCUT DRILLING
refer to ASX announcement 11th of July 2022
8m @ 0.4% Cu, 0.55g/t Au, 0.061% Co, from 40m; Hole ARC366
6m @ 0.4% Cu, 0.25g/t Au, 0.036% Co, from 72m; Hole ARC366
8m @ 2.35% Cu, 5.01g/t Au, 0.4% Co, from 83m; ARC366
Incl: 1m @ 4.03% Cu, 9.04g/t Au, 0.377% Co, from 83m
Incl: 1m @ 9.02% Cu, 11.25g/t Au, 1.265% Co, from 85m
8m @ 0.98% Cu, 0.96g/t Au, 0.149% Co, from 167m; ARC367
1m @ 1.64% Cu, 0.02g/t Au, 0.004% Co, from 227m; ARC369
1m @ 1.00% Cu, 3.41g/t Au, 0.082% Co, from 259m; ARC381
13m @ 2.58% Cu, 0.62g/t Au, 0.057% Co, from 130m; ARC387
Incl: 4m @ 7.59% Cu, 1.81g/t Au, 0.148% Co, from 131m
4m @ 1.02% Cu, 0.76g/t Au, 0.016% Co, from 135m; ARC389
15m @ 2.02% Cu, 0.63g/t Au, 0.171% Co, from 299m; ARC389
Incl: 1m @ 6.29% Cu, 1.9g/t Au, 0.2% Co, from 300m
Incl: 1m @ 6.32% Cu, 0.33g/t Au, 0.044% Co, from 307m
Incl: 1m @ 3.4% Cu, 2.08g/t Au, 0.687% Co, from 309m
9m @ 0.45% Cu, 0.34g/t Au, 0.074% Co, from 317m; ARC389
1m @ 0.88% Cu, 2.91g/t Au, 0.029% Co, from 76m; ARC390
6m @ 0.85% Cu, 0.26g/t Au, 0.027% Co, from 104m; ARC390
Incl: 1m @ 3.47% Cu, 0.69g/t Au, 0.037% Co, from 107m
4m @ 1.11% Cu, 0.39g/t Au, 0.099% Co, from 143m; ARC391
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
ADDITIONAL HOLES DRILLED TO TEST SAM SURVEY
A series of holes were drilled to the east of Crosscut to test additional structures identified from
magnetic interpretation and SAM survey anomalies. These are shown in Figure 18.
No significant results were reported from holes ARC368, ARC370, ARC371, ARC379, ARC380 and
ARC381. It is noted that ARC370 and ARC371 had intersected unusually high magnetite occurring as
very fine layers within what has been noted as a komatiite. Ni values are unusually consistent through
this unit at an average of around 0.14% Ni, with Cr showing a zonation, with high values of around
0.125%
Ni and Cr shows a distinct segregation to the NE and indicates the presence of ultramafics in the
system, however not economically mineralised.
SAM was successful in identifying highly magnetic and conductive units to the east of the Crosscut
Zone.
Figure 18: Drill collar location on background of SAM survey. Note the strong to intense SAM anomaly to the east which has
defined conductive ultramafic rocks.
Carlow East Zone Drilling
These recent results have shown that the potential of the eastern zone lies in depth extensions while
further discoveries of offset high-grade shoots to the south of the main East Zone will widen the
mineralised area at depth.
Figure 19 shows the location of the collars for the programme along with sections lines for the cross-
sections presented in this announcement.
Reinterpretation of the Carlow Castle deposit suggests that high-grade steeply-plunging shoots occur
in the East Zone, which in turn potentially identifies the East Zone as the feeder to the Carlow system.
This interpretation has enabled Artemis to plan drill targets with accuracy, with the majority of the
targets intersecting mineralisation returning excellent results.
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OPERATIONS REPORT
Figure 19: Section lines and collar locations of holes for the East Zone.
Most of these results extend existing mineralised trends downward in the East Zone, such as the results
for ARC355 Section 507360mE as shown in Figure 20. These results extend the current mineralised
envelops 80 metres below the 2021 optimised pit outline.
Figure 20: Hole ARC355 Section 507360 showing a series of mineralised intervals down along the drill trace, well below the 2021
optimised pit outline. This remains open at depth. The line traces highlight the low grade halo with orange outlining the >0.25g/t
Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.
Other holes, such as ARC356, shown on Section 507400mE; in Figure 21, intersected another zone of
high-grade of 6m @ 4.61g/t Au, 0.44% Cu, 0.02% Co from 294m that effectively extends the current
mineralised envelope 60 metres below the 2021 optimisation pit.
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OPERATIONS REPORT
Figure 21: Hole ARC356 Section 507400mE showing significant intersections well below the 2021 optimised pit outline, with
mineralisation open at depth. This section of the East Zone is near the Crosscut Zone, as shown by the significant intersection in
hole ARC344. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining
>0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.
A thick interval of 20m @ 2.06g/t Au, 0.40% Cu, 0.254% Co from 258m is particularly interesting, not just
for the Au and Cu, but significant Co values as well as shown in Figure 22.
Figure 22: Hole ARC359 Section 507540mE highlighting the thick mineralised intersection outside of the 2021 optimised pit
outline. This mineralised trend remains open down dip. The line traces highlight the low grade halo with orange outlining the
>0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.
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OPERATIONS REPORT
Continuation of the mineralised trend can be seen in Figure 23 and Figure 24, with significant values
extending below the 2021 optimised pit outline. These mineralised trends remain open at depth.
Figure 23: Hole ARC357 Section 507570mE showing the wide interval of mineralisation below the 2021 optimised pit. The line
traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by
implicit modelling. Refer to Figure 11 for location of the section.
Figure 24: Hole ARC358 Section 507600mE showing the continuation of the mineralisation at depth and well below the 2021
optimised pit outline. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining
>0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.
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OPERATIONS REPORT
Figure 25 places the sections into context, showing the various lodes that make up the Carlow
mineralised trend.
Figure 25: Oblique view of the Carlow System looking northeast, displaying its typical vein splay. New shoot developments
occur on the western side of the East Zone pit. Further drilling is required to extend these systems along strike and down dip.
Grid scale is approximately 300m.
Mineralisation on the East Zone is enveloped by a low-grade Cu-Au halo which is likely a result of
fracturing of the host rock during high-grade shoot development. Grades of this halo are typically
>0.25g/t Au and >0.25% Cu but seem to be more confined than that of the West Zone.
CARLOW WEST ZONE DRILLING
Five holes were drilled in the western zone, as shown in Figure 26 to test the high-grade shoots
geometry and assays for these holes are pending.
Figure 26: Location of Carlow West drill holes. Note trend of a NW structure in the vicinity of ARC401. Yellow solids are Carlow
mineralised polygons.
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OPERATIONS REPORT
All holes except ARC400 intersected significant sulphide mineralisation with, Figure 27, Figure 28 and
Figure 29 showing some of the sulphide intervals for the series of holes.
Figure 27: Sulphide mineralisation in Hole ARC398 from 99 to 103m
Figure 28: Mineralisation occurrence in ARC401 showing some 'massive' style of sulphides
Figure 29: Additional mineralisation in hole ARC401 from 159 -160m
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OPERATIONS REPORT
It is possible that hole ARC401 has intersected mineralisation obliquely that is related to the NW
structure as interpreted from magnetics.
Table 5 shows the significant intersections for the drilling competed in the East and West Zones of the
Carlow Main Area.
Table 5: Significant intervals for drill holes in the East and West Zone of the Carlow Main Zone
SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING
refer to ASX announcement 29th of November and 21st December 2022
5m @ 1.73% Cu, 1.47g/t Au, 0.1% Co, from 67m; Hole ARC316
Incl: 1m @ 3.15% Cu, 2.7g/t Au, 0.126% Co, from 71m; Hole ARC316
5m @ 5.75% Cu, 2.67g/t Au, 0.057% Co, from 111m; Hole ARC316
Incl: 2m @ 11.48% Cu, 5.07g/t Au, 0.067% Co, from 112m; Hole ARC316
4m @ 1.09% Cu, 1.44g/t Au, 0.175% Co, from 140m; Hole ARC316
13m @ 5.86% Cu, 0.21g/t Au, 0.137% Co, from 58m; Hole ARC317
Incl: 4m @ 10.41% Cu, 0.28g/t Au, 0.228% Co, from 59m; Hole ARC317
Incl: 2m @ 5.45% Cu, 0.37g/t Au, 0.163% Co, from 64m; Hole ARC317
Incl: 3m @ 6.02% Cu, 0.2g/t Au, 0.082% Co, from 67m; Hole ARC317
5m @ 1.25% Cu, 0.27g/t Au, 0.152% Co, from 175m; Hole ARC317
Incl: 1m @ 3.75% Cu, 0.4g/t Au, 0.113% Co, from 177m; Hole ARC317
2m @ 1.74% Cu, 0.78g/t Au, 0.182% Co, from 196m; Hole ARC317
1m @ 1.22% Cu, 0.28g/t Au, 0.259% Co, from 206m; Hole ARC317
3m @ 11.39% Cu, 6.82g/t Au, 0.063% Co, from 108m; Hole ARC318
Incl: 2m @ 16.4% Cu, 9.72g/t Au, 0.09% Co, from 108m; Hole ARC318
1m @ 1.04% Cu, 0.28g/t Au, 0.011% Co, from 120m; Hole ARC318
3m @ 2.71% Cu, 2.83g/t Au, 0.058% Co, from 124m; Hole ARC318
Incl: 1m @ 6.95% Cu, 4.74g/t Au, 0.054% Co, from 125m; Hole ARC318
1m @ 3.03% Cu, 0.39g/t Au, 0.097% Co, from 152m; Hole ARC318
2m @ 8.43% Cu, 0.5g/t Au, 0.475% Co, from 159m; Hole ARC318
1m @ 2.08% Cu, 0.72g/t Au, 0.024% Co, from 30m; Hole ARC319
1m @ 1.01% Cu, 0.32g/t Au, 0.066% Co, from 44m; Hole ARC319
1m @ 1.02% Cu, 0.87g/t Au, 0.016% Co, from 111m; Hole ARC320
1m @ 9.23% Cu, 0.85g/t Au, 0.026% Co, from 119m; Hole ARC320
2m @ 1.06% Cu, 0.32g/t Au, 0.067% Co, from 130m; Hole ARC320
2m @ 1.07% Cu, 0.17g/t Au, 0.103% Co, from 133m; Hole ARC320
1m @ 2.74% Cu, 0.01g/t Au, 0.004% Co, from 235m; Hole ARC320
1m @ 1.13% Cu, 0.18g/t Au, 0.005% Co, from 50m; Hole ARC321
1m @ 1.12% Cu, 0.38g/t Au, 0.288% Co, from 135m; Hole ARC322
2m @ 1.43% Cu, 1.08g/t Au, 0.221% Co, from 149m; Hole ARC322
4m @ 1.03% Cu, 0.29g/t Au, 0.204% Co, from 24m; Hole ARC323
1m @ 3.47% Cu, 0.14g/t Au, 0.021% Co, from 260m; Hole ARC323
2m @ 1.97% Cu, 0.21g/t Au, 0.021% Co, from 266m; Hole ARC323
1m @ 1.9% Cu, 0.08g/t Au, 0.032% Co, from 112m; Hole ARC324
1m @ 1.24% Cu, 1.4g/t Au, 0.061% Co, from 151m; Hole ARC324
2m @ 1.79% Cu, 0.47g/t Au, 0.055% Co, from 159m; Hole ARC324
1m @ 2.5% Cu, 0.47g/t Au, 0.113% Co, from 180m; Hole ARC324
4m @ 1.12% Cu, 0.11g/t Au, 0.062% Co, from 188m; Hole ARC324
1m @ 1.12% Cu, 0.2g/t Au, 0.039% Co, from 146m; Hole ARC325
8m @ 1.32% Cu, 0.21g/t Au, 0.092% Co, from 177m; Hole ARC325
Incl: 1m @ 4.7% Cu, 0.69g/t Au, 0.355% Co, from 181m; Hole ARC325
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING
4m @ 1.18% Cu, 3.96g/t Au, 0.102% Co, from 104m; Hole ARC326
1m @ 3.76% Cu, 0.18g/t Au, 0.202% Co, from 160m; Hole ARC326
2m @ 1.09% Cu, 0.13g/t Au, 0.005% Co, from 292m; Hole ARC326
1m @ 1.27% Cu, 1.08g/t Au, 0.013% Co, from 84m; Hole ARC327
2m @ 3.07% Cu, 5.34g/t Au, 0.256% Co, from 118m; Hole ARC327
Incl: 1m @ 3.98% Cu, 3.36g/t Au, 0.178% Co, from 119m; Hole ARC327
3m @ 4.22% Cu, 1.18g/t Au, 0.238% Co, from 127m; Hole ARC327
Incl: 1m @ 9.29% Cu, 1.39g/t Au, 0.474% Co, from 127m; Hole ARC327
3m @ 1.49% Cu, 0.68g/t Au, 0.111% Co, from 138m; Hole ARC327
1m @ 1.1% Cu, 3.08g/t Au, 0.043% Co, from 248m; Hole ARC334
2m @ 3.73% Cu, 0.03g/t Au, 3.211% Co, from 256m; Hole ARC334
5m @ 3.92% Cu, 1.22g/t Au, 0.05% Co, from 275m; Hole ARC334
1m @ 1.3% Cu, 1.51g/t Au, 0.505% Co, from 168m; Hole ARC335
3m @ 1.01% Cu, 0.11g/t Au, 0.163% Co, from 184m; Hole ARC335
1m @ 1.65% Cu, 0.15g/t Au, 0.126% Co, from 150m; Hole ARC337
1m @ 2.4% Cu, 0.33g/t Au, 0.072% Co, from 160m; Hole ARC337
10m @ 1.6% Cu, 2.11g/t Au, 0.34% Co, from 16m; Hole ARC338
Incl: 2m @ 4.23% Cu, 3.51g/t Au, 0.893% Co, from 16m; Hole ARC338
2m @ 1.13% Cu, 1.33g/t Au, 0.209% Co, from 36m; Hole ARC338
13m @ 5.95% Cu, 5g/t Au, 0.689% Co, from 42m; Hole ARC338
Incl: 5m @ 8.31% Cu, 8.1g/t Au, 0.659% Co, from 42m; Hole ARC338
Incl: 4m @ 8.42% Cu, 5.46g/t Au, 1.337% Co, from 50m; Hole ARC338
4m @ 2.59% Cu, 0.95g/t Au, 0.024% Co, from 80m; Hole ARC338
Incl: 1m @ 5.98% Cu, 1.6g/t Au, 0.019% Co, from 83m; Hole ARC338
3m @ 1.14% Cu, 2.31g/t Au, 0.161% Co, from 100m; Hole ARC338
1m @ 1.46% Cu, 4g/t Au, 0.029% Co, from 39m; Hole ARC340
5m @ 1.22% Cu, 1.69g/t Au, 0.024% Co, from 47m; Hole ARC340
Incl: 1m @ 3.76% Cu, 1.83g/t Au, 0.023% Co, from 49m; Hole ARC340
5m @ 1.66% Cu, 0.78g/t Au, 0.015% Co, from 57m; Hole ARC340
Incl: 1m @ 5.22% Cu, 1.18g/t Au, 0.02% Co, from 60m; Hole ARC340
1m @ 2.14% Cu, 0.09g/t Au, 0.102% Co, from 95m; Hole ARC340
1m @ 2.4% Cu, 7.05g/t Au, 0.082% Co, from 129m; Hole ARC340
1m @ 4.87% Cu, 0.02g/t Au, 0.003% Co, from 158m; Hole ARC340
3m @ 5.29% Cu, 0.8g/t Au, 0.185% Co, from 111m; Hole ARC342
Incl: 2m @ 6.68% Cu, 1.1g/t Au, 0.209% Co, from 112m; Hole ARC342
7m @ 1.9% Cu, 2.35g/t Au, 0.098% Co, from 126m; Hole ARC342
Incl: 1m @ 8.53% Cu, 11.25g/t Au, 0.175% Co, from 126m; Hole ARC342
1m @ 1.17% Cu, 1.42g/t Au, 0.549% Co, from 180m; Hole ARC342
1m @ 1.52% Cu, 2.39g/t Au, 0.477% Co, from 227m; Hole ARC342
2m @ 19.36% Cu, 1.58g/t Au, 0.051% Co, from 243m; Hole ARC342
2m @ 2.75% Cu, 0.42g/t Au, 0.009% Co, from 87m; Hole ARC344
Incl: 1m @ 4.9% Cu, 0.33g/t Au, 0.009% Co, from 87m; Hole ARC344
22m @ 2.23% Cu, 1.39g/t Au, 0.457% Co, from 247m; Hole ARC344
Incl: 4m @ 4.15% Cu, 1.78g/t Au, 0.517% Co, from 250m; Hole ARC344
Incl: 1m @ 4.89% Cu, 1.16g/t Au, 0.831% Co, from 258m; Hole ARC344
Incl: 4m @ 2.94% Cu, 2.08g/t Au, 0.978% Co, from 262m; Hole ARC344
7m @ 5.23% Cu, 0.74g/t Au, 0.054% Co, from 286m; Hole ARC344
Incl: 4m @ 7.65% Cu, 1.15g/t Au, 0.058% Co, from 286m; Hole ARC344
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
SIGNIFICANT MINERALISED INTERSECTION FOR MAIN ZONE DRILLING
2m @ 1.83% Cu, 0.44g/t Au, 0.02% Co, from 73m; Hole ARC349
1m @ 1.23% Cu, 0.47g/t Au, 0.007% Co, from 132m; Hole ARC349
3m @ 2.78% Cu, 0.54g/t Au, 0.032% Co, from 139m; Hole ARC349
Incl: 1m @ 7.17% Cu, 1.13g/t Au, 0.045% Co, from 140m; Hole ARC349
1m @ 1.18% Cu, 0.17g/t Au, 0.016% Co, from 160m; Hole ARC349
3m @ 1.57% Cu, 1.7g/t Au, 0.008% Co, from 228m; Hole ARC349
1m @ 1.82% Cu, 0.14g/t Au, 0.02% Co, from 15m; Hole ARC350
1m @ 3.15% Cu, 0.78g/t Au, 0.11% Co, from 42m; Hole ARC350
5m @ 3.51% Cu, 1.39g/t Au, 0.173% Co, from 47m; Hole ARC350
Incl: 1m @ 10.9% Cu, 3.59g/t Au, 0.012% Co, from 47m; Hole ARC350
Incl: 1m @ 4.31% Cu, 1.07g/t Au, 0.614% Co, from 50m; Hole ARC350
1m @ 1.98% Cu, 2.88g/t Au, 0.021% Co, from 78m; Hole ARC350
1m @ 1.16% Cu, 0.96g/t Au, 0.1% Co, from 171m; Hole ARC350
6m @ 1.38% Cu, 0.62g/t Au, 0.1% Co, from 42m; Hole ARC351
1m @ 1.63% Cu, 4.27g/t Au, 0.014% Co, from 249m; Hole ARC352
2m @ 4.87% Cu, 0.01g/t Au, 0.006% Co, from 68m; Hole ARC353
2m @ 1.49% Cu, 0.07g/t Au, 0.005% Co, from 122m; Hole ARC353
1m @ 1.2% Cu, 1.36g/t Au, 0.302% Co, from 314m; Hole ARC353
1m @ 3.89% Cu, 1.38g/t Au, 0.582% Co, from 298m; Hole ARC354
1m @ 3.54% Cu, 0.4g/t Au, 0.006% Co, from 211m; Hole ARC355
3m @ 1.45% Cu, 0.59g/t Au, 0.011% Co, from 215m; Hole ARC355
1m @ 1.33% Cu, 2.01g/t Au, 0.008% Co, from 237m; Hole ARC355
3m @ 21.91% Cu, 0.8g/t Au, 0.009% Co, from 246m; Hole ARC355
Incl: 2m @ 31.63% Cu, 1.1g/t Au, 0.011% Co, from 246m; Hole ARC355
Incl: 1m @ 53.1% Cu, 1.27g/t Au, 0.01% Co, from 246m; Hole ARC355
5m @ 1.31% Cu, 0.18g/t Au, 0.121% Co, from 283m; Hole ARC355
2m @ 11.93% Cu, 0.67g/t Au, 0.025% Co, from 199m; Hole ARC356
1m @ 6.23% Cu, 1.05g/t Au, 0.01% Co, from 231m; Hole ARC356
1m @ 1.24% Cu, 0.47g/t Au, 0.009% Co, from 254m; Hole ARC356
6m @ 4.61% Cu, 0.44g/t Au, 0.019% Co, from 294m; Hole ARC356
Incl: 1m @ 3.33% Cu, 0.12g/t Au, 0.013% Co, from 294m; Hole ARC356
Incl: 2m @ 5.75% Cu, 0.42g/t Au, 0.015% Co, from 296m; Hole ARC356
Incl: 1m @ 7.22% Cu, 1.05g/t Au, 0.04% Co, from 299m; Hole ARC356
1m @ 1.12% Cu, 0.03g/t Au, 0.005% Co, from 185m; Hole ARC357
11m @ 1.69% Cu, 0.49g/t Au, 0.256% Co, from 246m; Hole ARC357
Incl: 2m @ 6.68% Cu, 0.75g/t Au, 0.916% Co, from 246m; Hole ARC357
1m @ 1.21% Cu, 1.38g/t Au, 0.011% Co, from 294m; Hole ARC357
1m @ 1.1% Cu, 0.03g/t Au, 0.004% Co, from 315m; Hole ARC357
1m @ 25.1% Cu, 0.43g/t Au, 0.009% Co, from 245m; Hole ARC358
5m @ 1.71% Cu, 0.46g/t Au, 0.069% Co, from 262m; Hole ARC358
Incl: 1m @ 3.77% Cu, 0.57g/t Au, 0.016% Co, from 266m; Hole ARC358
20m @ 2.06% Cu, 0.4g/t Au, 0.254% Co, from 258m; Hole ARC359
Incl: 3m @ 8.78% Cu, 1.18g/t Au, 1.14% Co, from 258m; Hole ARC359
Incl: 7m @ 1.16% Cu, 0.38g/t Au, 0.128% Co, from 267m; Hole ARC359
2m @ 1.31% Cu, 6g/t Au, 0.014% Co, from 274m; Hole ARC361
1m @ 2.33% Cu, 0.36g/t Au, 0.05% Co, from 330m; Hole ARC361
6m @ 1.01% Cu, 1.81g/t Au, 0.027% Co, from 351m; Hole ARC361
1m @ 1.42% Cu, 0.54g/t Au, 0.018% Co, from 198m; Hole ARC362
1m @ 4.85% Cu, 4.72g/t Au, 0.059% Co, from 224m; Hole ARC362
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
QUOD EST ZONE
The Quod Est Zone mineralisation trends north-northeast, with a steep plunge dipping to the
southeast, controlled by a gabbro/basalt contact. Collar locations are shown in Figure 30.
Results for this drilling have returned 5m @ 2.90g/t Au, 0.62% Cu, 0.010% Co from 79m which includes
1m @ 7.14g/t Au, 1.26% Cu, 1.095% Co from 80m (Hole ARC323) and 4m @ 2.02g/t Au, 0.72% Cu,
0.263% Co which includes 1m @ 3.27g/t Au, 1.12% Cu, 0.365% Co from 104m (Hole ARC333). Additional
results are shown in Table 6.
Figure 30: Drill collar locations for the drilling at Quod Est Zone.
Table 6: Significant Intersections for the Quod Est Drill Holes
SIGNIFICANT MINERALISED INTERSECTION FOR QUOD EST DRILLING
refer to ASX announcement 29th of November
2m @ 1.64g/t Au, 0.88% Cu, 0.149% Co, from 46m; Hole ARC329
3m @ 3.14g/t Au, 0.43% Cu, 0.383% Co, from 111m; Hole ARC330
Incl; 1m @ 6.54g/t Au, 0.72% Cu, 0.766% Co, from 112m; Hole ARC330
3m @ 3.8g/t Au, 4.06% Cu, 1.563% Co, from 121m; Hole ARC330
Incl; 2m @ 4.52g/t Au, 4.99% Cu, 1.855% Co, from 121m; Hole ARC330
1m @ 1.93g/t Au, 0.25% Cu, 0.01% Co, from 127m; Hole ARC330
1m @ 1.24g/t Au, 2.09% Cu, 0.071% Co, from 146m; Hole ARC331
5m @ 2.9g/t Au, 0.62% Cu, 0.551% Co, from 79m; Hole ARC332
Incl; 1m @ 7.14g/t Au, 1.26% Cu, 1.095% Co, from 80m; Hole ARC332
Incl; 1m @ 3.33g/t Au, 0.61% Cu, 0.119% Co, from 82m; Hole ARC332
1m @ 4.35g/t Au, 0.77% Cu, 1.69% Co, from 96m; Hole ARC332
4m @ 2.02g/t Au, 0.72% Cu, 0.263% Co, from 102m; Hole ARC333
Incl; 1m @ 3.27g/t Au, 1.12% Cu, 0.365% Co, from 104m; Hole ARC333
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
DRILLING AT CHAPMAN PROSPECT
Chapman lies ~1km southeast of Carlow Castle as shown in Figure 8. The drilling at Chapman was
completed as part of the last phase of the 14,725 metre RC program, which was completed in
September 2021. These holes are prefixed with ‘GLC’ and are shown in Figure 31.
Figure 31: Location of drill collars and simplified geology for the Chapman Prospect. Direction of drill label does not reflect
the drill direction. Q3 2021 drilling is prefixed GLC, Q1 2022 drilling prefixed ARC.
These holes were planned to test various Versatile Time Domain Electromagnetic (VTEM) plates with
several holes intersecting low levels of copper and nickel.
GLC007 was targeting a VTEM plate that was isolated and seemed ‘off-trend’. Significant sulphides
(up to 15%) were intersected, comprising predominately of pyrite and pyrrhotite, hosted in quartz
veining. GLC007 has returned values of 10m @ 3.40% Cu, 1.75g/t Au, 24.65g/t Ag from 116m, including:
5m @ 6.23% Cu, 3.01g/t Au, 45.32g/t Ag, from 117m and 3m @ 1.73% Cu, 1.04g/t Au, 12.67g/t Ag from
138m.
The significant intersection in GLC007 and coincident VTEM plate is shown in Figure 32 with Table 7
showing significant results.
Figure 32: Slight oblique section looking northeast along the drill trace of GLC007 showing the location of the high-grade
intersections in relation to the VTEM plates.
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
Table 7: Significant intersections for holes drilled in the Chapman Prospect.
SIGNIFICANT MINERALISED INTERSECTION FOR CHAPMAN DRILLING
refer to ASX announcement 06th of December
2m @ 0.02g/t Au, 0.56% Cu, 2.9g/t Ag, from 129m; Hole GLC003
1m @ 0.02g/t Au, 0.81% Cu, 3.6g/t Ag, from 125m; Hole GLC004
3m @ 0.01g/t Au, 0.65% Cu, 3.17g/t Ag, from 81m; Hole GLC005
3m @ 0.02g/t Au, 0.69% Cu, 3.8g/t Ag, from 101m; Hole GLC005
Incl; 1m @ 0.04g/t Au, 1.08% Cu, 6.1g/t Ag, from 102m; Hole GLC005
3m @ 0.01g/t Au, 0.5% Cu, 2.23g/t Ag, from 17m; Hole GLC006
4m @ 0.28g/t Au, 0.56% Cu, 2.33g/t Ag, from 56m; Hole GLC006
Incl; 1m @ 0.85g/t Au, 1.04% Cu, 4.8g/t Ag, from 58m; Hole GLC006
3m @ 0.02g/t Au, 0.6% Cu, 3.43g/t Ag, from 126m; Hole GLC006
1m @ 0.06g/t Au, 0.51% Cu, 2.4g/t Ag, from 80m; Hole GLC007
10m @ 1.75g/t Au, 3.41% Cu, 24.65g/t Ag, from 116m; Hole GLC007
Incl; 5m @ 3.01g/t Au, 6.23% Cu, 45.32g/t Ag, from 117m; Hole GLC007
3m @ 1.04g/t Au, 1.73% Cu, 12.67g/t Ag, from 138m; Hole GLC007
Incl; 2m @ 1.28g/t Au, 2.28% Cu, 16.65g/t Ag, from 139m; Hole GLC007
In addition to the drilling, 52 x Ultrafine Fraction (UFF) soils were taken on a 200 x 50m grid to assist in
identifying the structures that may host mineralisation as illustrated in Figure 33.
It can be seen that the higher Cu values in the UFF soils fall within an interpreted structural corridor
that trends to the northwest.
Figure 33: Image showing the first pass UFF soil sampling for Cu values, which are highlighting a NW trend. Note that the
significant Cu values occur within the two inferred bounding structures, also trending to the NW. Hole GLC007 is highlighted
with its significant result, using a 0.3% Cu cut off. Image is mag 2VD with draped satellite image.
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
Additional holes were planned to test not only the VTEM targets but also the structural trend as
interpreted from magnetics. A total of 11 holes for 2,878m was completed, of which one hole was
diamond core for 132.9m. A total of 2,784 samples, including QAQC was sent for analysis.
These are shown in Figure 35 and are prefixed ARC.
A total of 11 holes for 2,507m was completed, of which one hole was diamond core for 103.8m. A
total of 2,784 samples, including QAQC was sent for analysis.
Post period the assay results were released in ASX release dated 13 September 2022 “Chapman
Prospect – Copper Nickel System Identified”.
LITTLE FORTUNE PROSPECT
Drilling here is also targeting VTEM plates, along with trends as defined by geological exposure. A
total of 7 holes for 2,017 metres was drilled. Location of the collars are shown in Figure 34.
Several holes were cased with PVC to enable any future downhole geophysics.
Sulphides were also encountered downhole, coincident with VTEM plates, however no significant
results were encountered in these holes.
Figure 34: Diagram showing collar locations and simply geology for the Little Fortune Prospect.
GEOPHYSICAL SURVEYS
DOWNHOLE ELECTROMAGNETIC SURVEYS (DHEM)
Downhole EM surveying was carried out in one drillhole at the Chapman (Good Luck) Prospect
(GLCC005, Figure 35) two drillholes at the Thorpe (Little Fortune) Prospect (drillholes LFRC002 and
LFRC005, Figure 36) and to follow-up copper mineralisation intersected in these drillholes as well as
EM sources related to modelled VTEM conductor plate targets.
The DHEM surveys were designed by Resource Potentials, and Gap Geophysics Pty Ltd were awarded
the survey contract, with the DHEM survey successfully completed in November 2021.
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
Figure 35: Location of drillhole GL005 and LF005 at the Chapman prospect, which was DHEM surveyed. The location of the
transmitter loop used for the survey is also shown, in blue. The drillhole trace is coloured according to Cu (ppm).
Figure 36: Location of drillholes LF005 and LF005 at the Thorpe prospect, which were DHEM surveyed. The location of the
transmitter loop used for the survey is also shown. The drillhole trace is coloured according to Cu (ppm).
RESULTS
Downhole electromagnetic surveying in drillholes LFRC002 and LFRC005 resolved anomalous off-hole
DHEM responses which was modelled with a steep NW dip and a moderate conductance of 850
siemens.
The up-dip projection of the modelled EM conductor plate coincides with elevated copper
intersections in drillhole LFRC006, as well as modelled DDIP chargeability anomaly responses, and this
zone has not been intersected by existing drilling.
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
A very small in-hole DHEM anomaly response was resolved in drillhole LFRC002, but no follow-up drill
targeting is recommended for this this very small conductor source. DHEM data from drillhole LFRC002
also suggest that there could be an off-hole and far-field conductor source located to the northeast
of the drill trace. DHEM conductor plate modelling was attempted, but not finalised due to the
anomaly response only being by one receiver component, and EM conductor plate modelling could
not be reliably completed. Interpretation of VTEM data and other ground-based EM surveys could
be carried out to look for the source of this far-field EM anomaly.
SURFACE SAMPLING
A total of 339 soil samples were analysed during the reporting period.
A survey comprising 75 soil samples was undertaken on tenement P47/1622, just east of the Sing Well
prospect, just prior to the reporting period. Samples were collected at 50m intervals along north–south
orientated traverses spaced 150m apart (Figure 37).
Samples comprised 100–200g material that was collected at a depth of 15cm below the ground
surface and sieved to minus 2mm. These samples were analysed early in the 2021–22 reporting year.
Figure 37: Soil sampling localities on tenement P47/1622. Location of the tenement is shown in Figure 7.
A soil sampling program using Ultrafine+ Fraction (UFF) methodology was completed over the
Carlow Castle Main zone (52 samples), Chapman (Good Luck, 104 samples), Thorpe (Little Fortune,
35 samples) and Carlow West (69 samples).
Artemis Resources Limited Annual Financial Report 2022
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OPERATIONS REPORT
A total of 264 samples have been collected, as shown in Figure 38. Samples have been collected
over the Carlow Castle Main Zone as an orientation survey to compare the assay variability with the
previously obtained results from the ionic leach method of ALS.
RESULTS
The survey undertaken on tenement P47/1622 returned one sample (GB378) with a spectacular result
of 10.9ppm Au. This sample also returned 1.02ppm Ag. Samples GB372 and GB373 to the west-
southwest of this sample also returned highly anomalous gold of 0.109ppm and 0.508ppm,
respectively.
The ultrafine soil sampling results define regional structures responsible for hosting mineralisation and
appears coincident with a regional magnetic trend. The survey over the Carlow Main grid (200 x 50m
grid), highlights elevated copper within an interpreted northwesterly trending structural corridor.
Figure 38: Overview map showing the distribution of UFF soil sampling that cover the Carlow Castle, Chapman and Thorpe
(Little Fortune) areas.
MINERAL RESOURCE ESTIMATIONS
The current mineral resource as released by CSA Global is shown in Table 8 below.
Table 8: Carlow Main Mineral Resources by classification reported above a cut-off of 0.3g/t AuEq and within an optimised shell
(as of 19th of May 2021).
Work has commenced on updating the interpretation for Carlow Castle which will allow for effective
geological control through definition of high-grade shoots and structures. The aim of this
reinterpretation is to increase the tonnage and grade through effective drill targeting and Artemis
releasing an updated robust mineral resource. The new model will enable target generation, adding
additional drill targets, to allow step out drilling while adding ounces to a currently increasing resource
base. Figure 39 shows the Carlow lodes currently being updated.
Artemis Resources Limited Annual Financial Report 2022
31
OPERATIONS REPORT
The recent drill program centred on the Carlow Main, Quod Est and Crosscut Zones was designed to
test the new interpretation, with assays results reflecting the interpretation.
Figure 39: Plan view of the various lodes for the Carlow system, which is currently in progress.
In accordance with Listing Rule 5.23.2, Artemis confirms that it is not aware of any new information or
data that materially affects the information included in the Annual Mineral Resources Statement
above, and that in the case of mineral resources that all material assumptions and technical
parameters underpinning the estimates in the Annual Mineral Resources Statement continue to apply
and have not materially changed.
Material Changes and Resource Statement Comparison
The Company during this year has continued to review and report its mineral resources at least
annually and provide an Annual Mineral Resources Statement. The date of reporting is 30 June each
year, to coincide with the Company’s end of financial year balance date. If there are any material
changes to its mineral resources over the course of the year, the Company is required to promptly
report these changes. In completing the annual review for the year ended 30 June 2022, the historical
resource factors for Projects were reviewed and found to be relevant and current, as at that date.
Governance Arrangements and Internal Controls
Artemis has ensured that the mineral resources quoted are subject to good governance
arrangements and internal controls. The mineral resources reported have been generated by
independent external consultants who are experienced in best practices in modelling and estimation
methods. The consultants have also undertaken reviews of the quality and suitability of the underlying
information used to generate the resource estimation. In addition, Artemis’ management carries out
regular reviews of internal processes and external contractors that have been engaged by the
Company.
The Carlow Castle mineral resource was compiled in accordance with the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code) 2012 Edition.
Artemis Resources Limited Annual Financial Report 2022
32
OPERATIONS REPORT
RADIO HILL
DOWNHOLE ELECTROMAGNETIC SURVEYS
Downhole electromagnetic surveying was undertaken during November–December 2021 by Gap
Geophysics Australia Pty Ltd. Two historical diamond holes at Radio Hill were selected for surveying,
these being 07RHDD080 and 08RHRCD103 (Figure 40). The latter was replaced by drillhole
08RHRCD108 when a pre-survey check showed that the hole 07RHDD080 was blocked at 70m
downhole. A total of 1,157.12m was surveyed.
Drillhole 07RHDD080 was drilled in 2007 and intersected 0.68m at 3.66% Ni from 324m. Downhole EM
surveying was originally completed in 2007 in this drillhole using a high transmitter frequency of 5Hz
and a low-power system compared to modern standards. The historic DHEM survey identified a small
in-hole anomaly response at 325m downhole, coincident with the nickel sulphide intersection. A very
subtle deeper response was also observed within the noise envelope that may be associated with a
far-field conductor located east of the drillhole.
Drillhole 08RHRCD108 was drilled in 2008. The drillhole did not intersect any significant nickel sulphide
mineralisation and was not historically DHEM surveyed.
The new DHEM survey in drillhole 07RHDD080 identified a short wavelength anomaly at 325m
downhole, coincident with the known nickel sulphide mineralisation intersected in the drillhole but
did not detect a far-field anomaly. The modelled conductor plate has approximate dimensions of
20m by 15m.
No follow-up work is recommended based on the DHEM results in drillhole 07RHDD080. No anomalies
of interest were identified in the DHEM survey data from drillhole 08RHRCD108, and no follow-up is
recommended based on these DHEM survey data.
The Radio Hill mine and plant remains on care and maintenance.
Artemis Resources Limited Annual Financial Report 2022
33
OPERATIONS REPORT
Figure 40:Downhole electromagnetic survey loops and drill hole locations that underwent the survey.
WHUNDO
The Whundo Project is located approximately 40 kilometres south-southwest of Karratha in the West
Pilbara Region of Western Australia and is approximately 12.5 kilometres southeast of the Radio Hill
nickel plant.
In the March quarter, a total 3,768m was drilled at Whundo, with 25 holes completed.
The drilling was focused on testing for lateral and deeper extensions to the eastern and western lobes
of the Whundo deposit and including untested magnetic and conductor targets in proximity to the
Whundo Mine.
To assist with future drill targeting at Whundo the deeper drill holes have been prepared for Down
Hole EM Surveying (DHEM). GreenTech moved to 100% ownership of Whundo during the June quarter
following satisfaction of the earn-in expenditure commitments.
Artemis Resources Limited Annual Financial Report 2022
34
OPERATIONS REPORT
Tenements
Artemis current tenement listing are shown in Table 9. Refer to Figure 7 for locations.
Table 9: Tenement holdings for Artemis Resources as of June 2022
Tenement
Status
Holder
Affiliate
Name
Code
Size
E47/3719
Granted
Artemis
Acnco Res Ltd
Karratha - ARV JV
C183/2008 Cherratta
16 Bks
L47/163
Granted
Artemis
Acnco Res Ltd
Whundo
4.83 Ha
M47/7
M47/9
L47/781
L47/782
Granted
Artemis
Acnco Res Ltd
Radio Hill - ARV JV
C93/2003 Radio Hill
935.1 Ha
Granted
Artemis
Acnco Res Ltd
Whundo
C93/2003 Radio Hill
4.8505 Ha
Application
Artemis
Artemis Res. Ltd
Karratha - ARV JV
Application
Artemis
Artemis Res. Ltd
Karratha - ARV JV
E45/5276
Granted
Artemis
Artemis Res. Ltd
Telfer
21.6 Ha
46.3 Ha
189 Blks
E47/1746
Granted
Artemis
Artemis Res. Ltd
Cherratta - ARV JV
C183/2008 Cherratta
42 Blks
E47/1797
Granted
Artemis
Artemis Res. Ltd
Cherratta - ARV JV
C183/2008 Cherratta
10 Blks
E47/3361
Granted
Artemis
Artemis Res. Ltd
Elysian/Hard Rock
C122/2018 Elysian
5 Blks
L47/93
Granted
Artemis
Artemis Res. Ltd
Karratha - ARV JV
7.02 Ha
L7922-1989-5 Granted
Artemis
Artemis Res. Ltd
Radio Hill - ARV JV
M47/161
Granted
Artemis
Artemis Res. Ltd
Radio Hill - ARV JV
C93/2003 Radio Hill
990.8 Ha
M47/337
Granted
Artemis
Artemis Res. Ltd
Radio Hill - ARV JV
C93/2003 Radio Hill
182.8 Ha
P47/1622
Granted
Artemis
Artemis Res. Ltd
Cherratta - ARV JV
C183/2008 Cherratta
96.87 Ha
P47/1972
Granted
Artemis
Artemis Res. Ltd
Cherratta - ARV JV
150.94 Ha
CORPORATE
AIM-LISTING
On 7 February 2022 the company was admitted to the aim market of the London stock
exchange and its shares commenced trading under the symbol AIM:ARV. The company
maintains its primary listing on the ASX.
CAPITAL RAISING
On 27 January 2022, as part of its listing on the AIM market of the London Stock Exchange, the
Company raised, in aggregate, gross proceeds of £5 million (~A$9.5m) through the placing of
133,333,333 Placing Shares and Subscription Shares to certain institutional and other investors at a
price of 3.75 pence (~7.1 cents) per share.
PROJECT SALES AND TENEMENT AGREEMENTS
GreenTech Metals Limited (GreenTech) exercised its Option to acquire certain non- core projects
from Artemis in December 2021 and listed on the ASX on 4 January 2022.
GreenTech acquired the Elysian Project, Ruth Well Project, Nickol River Project and Weerianna Project
from Artemis for a consideration of 6,750,000 shares in GreenTech or 14.84% of the ordinary shares
and a $250,000 reimbursement in cash of exploration expenses.
In addition, the Company entered into the following farm-in agreements. Farm-In and JV Agreement
with Artemis Resources Limited subsidiary KML No 2 Pty Ltd: GreenTech can earn up to 51% interest
and establish an unincorporated joint venture in the Osborne Nickel Project.
Farm-In and JV Agreement with Artemis Resources Limited subsidiary Fox Radio Hill Pty Ltd: GreenTech
can earn up to 100% interest in the Whundo Project. If GreenTech earn less than 100% interest in the
Whundo Project, an unincorporated joint venture will be established.
Artemis Resources Limited Annual Financial Report 2022
35
OPERATIONS REPORT
On 22 March 2022 Artemis completed the sale of its 70% interest in the Munni Munni JV.
Artemis received A$250,000 in cash and was issued 358,617,818 ordinary shares in Alien Metals PLC
(LSE AIM:UFO) (A$4,650,000 worth of shares at a deemed VWAP of 0.699p per share).
BOARD CHANGES
The Board welcomed Dr Simon Dominy as a Director on 1 July 2021. Dr Dominy is Adjunct Professor at
the Western Australian School of Mines (WASM), Curtin University, and a Visiting Associate Professor at
the Camborne School of Mines (CSM), University of Exeter, UK.
A mining geologist-engineer with over 25 years’ experience, Dr Dominy has since 2015 been working
with a number of private and listed entities developing/operating gold projects including: MG Gold
Ltd; Novo Resources Corporation (TSV: NVO); Scotgold Resources Ltd (AIM: SGZ) and OCX Gold
Group.
Between 2004-2014 he was an Executive Consultant/General Manager with the Snowden Group
based in Australia and UK, including two years contracted out to LionGold Corporation (SGX: A78).
Simon is a Fellow of the Australasian Institute of Mining and Metallurgy (“FAusIMM”) and the Australian
Institute of Geoscientists (“FAIG”).
Mr Guy Robertson, Company Secretary, was appointed a Director on 17 January 2022.
Alastair Clayton
Executive Director
Competent Person Statements
The information in this report that relates to Exploration Results complies with the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) and has been compiled and assessed, under the supervision of or reviewed by Mr. Steven
Boda. Mr Boda is an employee of Artemis Resources Limited. Mr. Boda is a Fellow of the Australasian
Institute of Geoscientists, Member ID; 1374. He 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 JORC Code. Mr. Boda consents
to the inclusion in this report of the matters based on his information in the form and context in which
it appears.
Artemis Resources Limited Annual Financial Report 2022
36
CORPORATE GOVERNANCE STATEMENT
Artemis, through its Board and executives, recognises the need to establish and maintain
corporate governance policies and practices that reflect the requirements of market
regulators and participants, and the expectations of members and others who deal with
Artemis. These policies and practices remain under constant review as the corporate
governance environment and good practices evolve.
ASX Corporate Governance Principles and Recommendations
The third edition of ASX Corporate Governance Council Principles and Recommendations (the
“Principles”) sets out recommended corporate governance practices for entities listed on the
ASX.
The Company has issued a Corporate Governance Statement which discloses the Company’s
corporate governance practices and the extent to which the Company has followed the
recommendations set out in the Principles. The Corporate Governance Statement was
approved by the Board on 30 September 2022 and is available on the Company’s website:
https://artemisresources.com.au/company/corporate-governance
Artemis Resources Limited Annual Financial Report 2022
37
DIRECTORS’ REPORT
The Directors of Artemis Resources Limited submit herewith the financial report of Artemis
Resources Limited (“Artemis” or “Company”) and its subsidiaries (referred to hereafter as the
“Group”) for the year ended 30 June 2022. In order to comply with the provisions of the
Corporations Act 2001, the directors report as follows:
The names of the Directors who held office during or since the end of the year and until the
date of this report are as follow:
Mark Potter
Alastair Clayton
Guy Robertson
Edward Mead
Daniel Smith
Simon Dominy
Vivienne Powe
Current Directors
MR MARK POTTER
Non-Executive
Chairman
Non-Executive Chairman
Executive Director
Executive Director (appointed 17 January 2022)
Non-Executive Director
Non-Executive Director
Non-Executive Director (appointed 1 July 2021)
Non-Executive Director (appointed 4 July 2022)
Mr Mark Potter has over 16 years’ experience in natural resource
investments. He currently serves as a Director and Chief
Investment Officer of Metal Tiger PLC, a natural resources
investment company quoted on the AIM market of the London
Stock Exchange.
including
Mr Potter has worked on several landmark deals in the mining
sector
investment and
the successful distressed
turnaround of Western Coal Corp and its c$3.3bn sale to Walter
Energy Inc. He has a MA degree in Engineering and Management
from Trinity College, University of Cambridge.
Mr Potter is also the Non-Executive Chairman of GreenTech Metals
Limited.
Interest in Securities as at the date of this report:
Fully paid ordinary shares: Nil
Unlisted options: 22,000,000
Directorships in last three years: Non-Executive Chairman of Thor
Mining Plc.
MR ALASTAIR
CLAYTON
Executive Director
Mr. Clayton is based in London and is a qualified geologist and
mining executive with extensive experience
in evaluating,
optimising and
scale mining projects
financing
internationally.
large
Alastair has over 20 years’ experience in identifying, financing and
developing mineral, energy and materials processing projects in
Australia, Europe and Africa. A qualified geologist, Alastair also has
a Graduate Diploma in Finance and Economics and maintains a
broad network of Equity Provider and Private Equity relationships
in both Europe, Africa and Australia.
Mr Clayton has considerable experience with both ASX and AIM
listed companies. In his previous role at Primorus Investments
AIM:PRIM, Mr Clayton has been a vocal supporter of the Patersons
Artemis Resources Limited Annual Financial Report 2022
38
DIRECTORS’ REPORT
MR EDWARD MEAD
Non-Executive Director
MR DANIEL SMITH
Non-Executive Director
Range area and understands the significant potential the
Company holds as the Artemis project surrounds Haverion. Mr
Clayton was previously a Director of ASX100 listed Extract
Resources and Universal Coal PLC.
Interest in Securities as at the date of this report:
Fully paid ordinary shares: 7,250,000
Unlisted options: 43,000,000
Directorships in last three years: Nil
Mr Edward Mead is a geologist with over 25 years’ experience in
gold and base metals exploration, mine development and mine
production. Mr Mead has also worked in the oil and gas industry
on offshore drilling platforms. Other commodities that he has
significant experience with are
iron ore, magnetite, coal,
manganese, lithium, potash and uranium.
Mr Mead has a Bachelor of Science (Geology) from Canterbury
University in New Zealand and is a member of the Australian
Institute of Mining and Metallurgy.
Mr Mead is a director of White Cliff Minerals Limited. Mr Mead was
appointed as a Director on 31 December 2014.
Interest in Securities as at the date of this report:
Fully paid ordinary shares: 4,483,870
Unlisted options: 3,750,000
Directorships in last three years: Nil
Mr Daniel Smith holds a Bachelor of Arts, is a Fellow of the
Governance Institute of Australia with a strong background in
finance having previously worked in the broking industry. Mr Daniel
Smith has 14 years’ primary and secondary capital markets
expertise and has advised on and been involved in a number of
IPOs, RTOs and capital raisings on the ASX, AIM and NSX.
Mr Smith is a non-executive director of Alien Metals Limited, White
Cliff Minerals Limited and Nelson Resources Limited, non-executive
director and company secretary of Europa Metals Limited, QX
Resources Limited and Lachlan Star Limited, and is company
secretary of a number of companies on ASX and NSX.
Interest in Securities as at the date of this report:
Unlisted options: 4,750,000
Directorships in last three years: Nil
Artemis Resources Limited Annual Financial Report 2022
39
DIRECTORS’ REPORT
DR SIMON DOMINY
Non-Executive
Director
Dr Simon Dominy is Adjunct Professor at the Western Australian
School of Mines (WASM), Curtin University, and a Visiting Associate
Professor at the Camborne School of Mines (CSM), University of
Exeter, UK.
Dr Dominy is a mining geologist-engineer with over 25 years’
experience based in mine operations, consulting and academia.
He has worked on a number of gold projects in Australia
particularly in WA, QLD and VIC, and across Europe, the Americas,
and Africa.
Since 2015 he has been working with several of private and listed
entities developing/operating gold projects including: MG Gold
Ltd; Novo Resources Corporation (TSV: NVO); Scotgold Resources
Ltd (AIM: SGZ) and OCX Gold Group.
Between 2004-2014 he was an Executive Consultant/General
Manager with the Snowden Group based in Australia and UK,
including two years contracted out to Lion Gold Corporation
(SGX: A78).
(“FAusIMM”) and
Dr Dominy is a Fellow of the Australasian Institute of Mining and
Metallurgy
Institute of
Geoscientists (“FAIG”). Over the past 20 years he has acted as a
Competent/Qualified Person on numerous mineral deposits
globally.
the Australian
VIVIENNE POWE
Non-Executive Director
Interest in Securities as at the date of this report:
Unlisted options: 2,000,000
Directorships in last three years: Nil
Mrs Powe was appointed a Director of the Company on 4 July
2022. Vivienne is a metallurgical engineer and highly experienced
senior executive with a strong track record of creating shareholder
value in top tier, global mining services and oil & gas companies.
Mrs Powe is currently Chief Executive Officer, Investments for
Perenti Group (ASX: PRN). Prior to joining Perenti, she has served in
senior executive and leadership roles in private and listed
organisations which have included Global Advanced Metals, BHP,
Iluka Resources, Woodside Energy and Renison Goldfields
Consolidated. Mrs Powe’s expertise spans operations, project
development and M&A across a wide range of commodities.
Mrs Powe holds a Bachelor of Engineering degree (Metallurgical
Engineering, with Distinction) from the Royal Melbourne Institute of
Technology, a Graduate Diploma
in Applied Finance &
Investment from FINSIA and a Master of Business Administration
(Technology Management) from Deakin University.
Interest in securities at the date of this report:
Unlisted options 2,000,000
Directorships in last three years: Nil
Artemis Resources Limited Annual Financial Report 2022
40
DIRECTORS’ REPORT
GUY ROBERTSON
Mr Robertson was appointed a director on 17 January 2022.
Mr Robertson has over 30 years’ experience as a Director, CFO
and Company Secretary of both public (ASX- listed) and private
companies in both Australia and Hong Kong. He has had
significant experience in due diligence, acquisitions, IPOs and
corporate management. Mr Robertson has a Bachelor of
Commerce (Hons) and is a Chartered Accountant. He is a director
of Hastings Technology Metals Ltd, Metal Bank Limited, GreenTech
Metals Limited and Bioxyne Limited.
Interest in securities at the date of this report:
Ordinary shares 4,000,002
Unlisted options 3,000,000
Directorships in last three years: Nil
Company Secretary
MR GUY ROBERTSON
Mr Guy Robertson was appointed Company Secretary on 12
November 2009.
Significant Changes in State of Affairs
There were no significant changes in the state of affairs of the Company during the year.
Principal Activities
The principal activity of the Company during the financial year was mineral exploration. There
have been no significant changes in the nature of the Company’s principal activities during
the financial year.
Significant Events after Balance Sheet Date
Mrs Vivienne Powe was appointed a non-executive director on 4 July 2022.
Other than as outlined above there are currently no matters or circumstances that have arisen
since the end of the financial year that have significantly affected or may significantly affect
the operations the Group, the results of those operations, or the state of affairs of the Group in
the future financial years.
Likely Future Developments and Expected Results
The primary objective of Artemis is to explore its current tenements in Australia with a view to
determining an economically viable gold resource at Paterson Central and a viable
gold/copper/cobalt resource for processing at the Fox Radio Hill processing plant.
Artemis Resources Limited Annual Financial Report 2022
41
DIRECTORS’ REPORT
Performance in relation to Environmental Regulation
The Group will comply with its obligations in relation to environmental regulation on its projects
when it undertakes exploration. The Directors are not aware of any breaches of any
environmental regulations during the period covered by this Report.
Operating Results and Financial Review
The loss of the Group after providing for income tax amounted to $7,529,345 (2021: loss of
$10,483,611). The loss position for the year includes non-cash items comprising a write off of
exploration costs of $4,696,301 (2021: $7,113,105), fair value loss on financial assets of $165,883
(2021: Gain of $708,289), and share based payments in the amount of $112,200 (2021:
$1,401,000).
The Group’s operating income decreased to $33,389 (2021: $133,815), given the reduction in
Government COVID assistance, while the gain on sale of projects amounted to $1,734,962. The
Group’s expenses decreased to $9,297,696 (2021: $11,297,045).
The carrying value of exploration and development costs decreased to $27,323,626 (2021:
$28,603,617) reflecting exploration undertaken during the year and the impairment of the
carrying costs of exploration on the Company’s projects. The development expenditure has
increased to $27,420,924 (2021: $23,473,919) reflecting refurbishment on the Radio Hill Plant
which remains on care and maintenance and an increase in the provision for rehabilitation of
$3,810,136.
Dividends Paid or Recommended
The Directors do not recommend the payment of a dividend and no dividend has been paid
or declared to the date of this Report.
Directors’ Meetings
The number of Directors' meetings (including committees) held during the year and the
number of meetings attended by each director were as follows:
Name of Director
Mark Potter
Alastair Clayton
Edward Mead
Daniel Smith
Simon Dominy
Guy Robertson
Board Meetings
Audit Committee
Meetings
Remuneration
Committee Meetings
Attended
Held
Attended
Held
Attended
Held
10
10
9
7
9
4
10
10
10
10
10
5
2
-
-
2
2
-
2
-
-
2
2
-
2
-
-
2
2
-
2
-
-
2
2
-
Held represents the number of meetings held during the time the director held office or was a
member of the relevant committee.
Artemis Resources Limited Annual Financial Report 2022
42
DIRECTORS’ REPORT
Indemnifying Officers
In accordance with the Constitution, except as may be prohibited by the Corporations Act
2001, every officer or agent of the Company shall be indemnified out of the property of the
Company against any liability incurred by him or her in his or her capacity as officer or agent
of the Company or any related corporation in respect of any act or omission whatsoever and
howsoever occurring or in defending any proceedings, whether civil or criminal.
The Company paid insurance premiums of $55,500 on 17 August 2022 in respect of a contract
insuring the directors and officers of the Group against any liability incurred in the course of
their duties to the extent permitted by the Corporations Act 2001. The insurance premiums
relate to:
•
•
Costs and expenses incurred by the relevant officers in defending legal proceedings,
whether civil or criminal and whatever their outcome; and
Other liabilities that may arise from their position, with the exception of conduct involving
wilful breach of duty or improper use of information to gain a personal advantage.
Proceedings on behalf of the Company
As at publication date, no person has applied for leave of court to bring proceedings on
behalf of the Company or intervene in any proceeding to which the Company is a party for
the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2022 has been
received and can be found on page 43 of the financial report.
Audit and Non-Audit Services
Details on the amounts paid or payable to the auditor (HLB Mann Judd) for audit and non-
audit services during the year are disclosed in note 24.
This Report is made in accordance with a resolution of the Directors.
Mark Potter
Chairman
30 September 2022
Artemis Resources Limited Annual Financial Report 2022
43
REMUNERATION REPORT
REMUNERATION REPORT – AUDITED
The remuneration report, which has been audited, outlines the key management personnel
remuneration arrangements for the Company, in accordance with the requirements of the
Corporations Act 2001 and its regulations.
The remuneration report is set out under the following main headings:
A. Principles used to determine the nature and amount of remuneration
B. Details of remuneration
C. Service agreements
D. Share-based compensation
E. Additional disclosures relating to key management personnel
A. Principles used to determine the nature and amount of remuneration
The Board’s policy for determining the nature and amount of remuneration for Board members
and officers is as follows:
•
•
•
•
•
The remuneration policy, which sets the terms and conditions (where appropriate) for
the executive directors and other senior staff members, was developed by the
Remuneration Committee and ultimately approved by the Board;
In determining competitive remuneration rates, the Remuneration Committee may seek
independent advice on local and international trends among comparative companies
and industries generally. The Remuneration Committee examines terms and conditions
for employee incentive schemes, benefit plans and share plans. Independent advice
may be obtained to confirm that executive remuneration is in line with market practice
and is reasonable in the context of Australian executive reward practices. No
remuneration consultants were retained by the Group during the year;
The Company is a mineral exploration company, and therefore speculative in terms of
performance. Consistent with attracting and retaining talented executives, directors
and senior executives, such personnel are paid market rates associated with individuals
in similar positions within the same industry. Options and performance incentives may be
issued particularly as the Company moves from commercialisation to a producing entity
and key performance indicators such as profit and production can be used as
measurements for assessing executive performance;
Given the early stage of the Company’s projects it is not meaningful to track executive
compensation to financial results and shareholder wealth. It is also not possible to set
meaningful specific objective performance criteria for directors as this stage;
All remuneration paid to directors and officers is valued at the cost to the Company and
expensed. Where appropriate, shares given to directors, executives and officers are
valued as the difference between the market price of those shares and the amount paid
by the director or executive. Options are valued using the Black-Scholes methodology;
and
Artemis Resources Limited Annual Financial Report 2022
44
REMUNERATION REPORT
A. Principles used to determine the nature and amount of remuneration
(continued)
•
The policy is to remunerate non-executive directors and officers at market rates for
comparable companies for time, commitment and responsibilities. Given the evolving
nature of the Group’s business, the Board, in consultation with independent advisors,
determines payments to the non-executive directors and reviews their remuneration
annually, based on market practice, duties and accountability.
The maximum aggregate amount of fees that can be paid to non-executive directors is
$500,000 per annum. Fees for non-executive directors and officers are not linked to the
performance of the Company. However, from time to time and subject to obtaining all
requisite shareholder approvals, the directors and officers will be issued with securities as
part of their remuneration where it is considered appropriate to do so and as a means
of aligning their interests with shareholders.
B. Details of remuneration
(i) Details of Directors and Key Management Personnel
Current Directors
Mark Potter – Non-Executive Chairman (appointed 24 February 2020)
Alastair Clayton – Executive Director (appointed 29 January 2020)
Edward Mead – Non-Executive Director (appointed 31 December 2014)
Daniel Smith – Non-Executive Director (appointed 5 February 2019)
Simon Dominy – Non-Executive Director (appointed 1 July 2021)
Guy Robertson – Executive Director (appointed 17 January 2022)
Vivienne Powe – Non-Executive Director (appointed 4 July 2022)
Key Management Personnel
Stephen Boda – General Manager Exploration
Except as detailed in Notes (i) – (ii) to the Remuneration Report, no Director has received or
become entitled to receive, during or since the financial period, a benefit because of a
contract made by the Company or a related body corporate with a Director, a firm of which
a Director is a member or an entity in which a Director has a substantial financial interest. This
statement excludes a benefit included in the aggregate amount of emoluments received or
due and receivable by Directors and shown in Notes (i) – (ii) to the Remuneration Report,
prepared in accordance with the Corporations Regulations 2001, or the fixed salary of a full-
time employee of the Company.
Artemis Resources Limited Annual Financial Report 2022
45
REMUNERATION REPORT
B. Details of remuneration (continued)
(ii) Remuneration of Directors and Key Management Personnel
The Remuneration Committee and the Board will assess the appropriateness of the nature and
amount of emoluments of such officers on a periodic basis by reference to relevant
employment market conditions with the overall objective of ensuring maximum stakeholder
benefit from the retention of a high-quality Board and executive team. Remuneration of the
Key Management Personnel of the Group is set out below.
Total
Performance
based
FY21/22
Name
Share
Based
Payments
Bonus
$
$
Post
Employment
Super-
Contribution
$
Base
Salary
and Fees
$
$
M. Potter
A. Clayton
E. Mead
D. Smith
S. Dominy
G. Robertson
S. Boda
-
-
-
-
-
-
182,379
328,105
48,336
53,961
54,024
108,000
307,999 100,000
1,082,804 100,000
-
-
-
-
81,600
-
7,650
89,250
182,379
-
328,105
-
48,336
-
53,961
-
135,624
-
108,000
-
24,042
439,691
24,042 1,296,096
%
-
-
-
-
-
-
24%
8%
FY20/21
Name
M. Potter
A. Clayton
E. Mead
D. Smith
B. Timler¹
A. Younger
S. Boda
Base
Salary
and Fees
Share
Based
Payments
$
125,132
328,535
188,225
50,004
$
948,900
452,100
-
-
228,591
177,192
55,974
-
-
-
1,153,653 1,401,000
Post
Employment
Super-
Contribution
$
Total
$
-
-
-
-
16,562
16,833
2,679
36,074
1,074,032
780,635
188,225
50,004
245,153
194,025
58,653
2,590,727
¹Includes termination payment of $93,191, on resignation on 24 May 2021.
Performance
based
%
88%
58%
-
-
-
-
-
54%
Artemis Resources Limited Annual Financial Report 2022
46
REMUNERATION REPORT
C. Service agreements
Component
Non-executive
Chairman
Executive
Director¹
Non-executive
directors
Fixed remuneration
$120,000
$350,000
$60,000
Contract duration
Ongoing
Ongoing
Ongoing
Notice by the
individual/company
1 month
3 months
1 month
All Board members have letters of appointment, with remuneration and terms as stated.
¹Executive Director, Alastair Clayton. Guy Robertson, Executive Director, CFO and Company
Secretary receives an annual fee of $120,000.
The General Manager Exploration has a contract providing for a gross salary of $308,000 plus
superannuation. The contract has a three-month notice period. The General Manager
Exploration received a bonus of $100,000 for the year ended 30 June 2022 for meeting
performance milestones.
D. Share-based compensation
Options
The terms of each grant of options affecting remuneration in the previous, current or future
reporting periods are as follows:
Date option granted
Expiry date
of Shares
option
Exercise price
Number under
1 May 2020
31 July 2022
5 cents
43,500,000
1 May 2020
31 July 2023
7 cents
43,500,000
2 December 2020
2 December 2023
18 cents
5,000,000
2 December 2020
2 December 2025
25 cents
5,000,000
20 December 2021
20 December 2024
15 cents
2,000,000
Artemis Resources Limited Annual Financial Report 2022
47
REMUNERATION REPORT
D. Share-based compensation (continued)
Options
Options granted as remuneration to Key Management Personnel in the previous and current
reporting periods:
Name
Date of grant
Expiry date
Number
under
options
Grant date
value
Vesting date²
Mark Potter
1 May 2020
31 July 2022
5,000,0003
$65,050
31 July 2020
Alastair Clayton 1 May 2020
31 July 2022
30,000,0003
$390,300
31 July 2020
Edward Mead
1 May 2020
31 July 2022
3,750,0003
$48,787
30 April 2020
Daniel Smith
1 May 2020
31 July 2022
4,750,0003
$61,798
30 April 2020
Mark Potter
1 May 2020
31 January 2023
5,000,0004
$75,350 24 February 2021
Alastair Clayton 1 May 2020
31 January 2023
30,000,0004
$452,100 29 January 2021
Edward Mead
1 May 2020
31 January 2023
3,750,0004
$56,512
1 May 2020
Daniel Smith
1 May 2020
31 January 2023
4,750,0004
$71,583
1 May 2020
Mark Potter
1 December 2020
1 December 2023
5,000,0005
$406,150 1 December 2021
Mark Potter
1 December 2020
1 December 2025
5,000,0006
$467,400 1 December 2021
Boyd Timler
30 September 2020 30 September 2022
2,500,0007
$134,200
Boyd Timler
30 September 2020 30 September 2023
2,500,0008
$142,650
N/A
N/A
Simon Dominy
20 December 2021 20 December 2024
2,000,0009
$81,600
30 June 2022
The assessed fair value at grant date of options granted to the individuals is allocated equally
over the period from grant date to vesting date, and the amount is included in the
remuneration tables above. Fair values at the grant date are independently determined using
a 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 shares, the expected dividend yield and the risk-free interest rate for the term
of the option.
²Vesting dates are between one and two years from date of appointment.
3Exercise price $0.05, value per option $0.01301
Exercise price $0.07, value per option $0.01507
5Exercise price $0.18, value per option $0.08123, value fully expensed in financial year 30 June 2021
⁴
6Exercise price $0.25, value per option $0.09348, value fully expensed in financial year 30 June 2021
7Exercise price $0.10, value per option $0.05368
8Exercise price $0.125, value per option $0.05706
9Exercise price $0.15, value per option $0.0408
All equity dealings with Directors have been entered into with terms and conditions no more
favourable than those that the entity would have adopted if dealing at arm’s length.
Artemis Resources Limited Annual Financial Report 2022
48
REMUNERATION REPORT
D. Share-based compensation (continued)
Performance rights
On the 30 December 2021 the Company issued 6 million performance rights to
employees and consultants of the Company.
The hurdles for the performance rights, which have a performance end date of 31
December 2022 are as follows:
1. 3,000,000 performance rights to vest on the share price achieving a 30-day VWAP in
period of $0.025 (tranche 1 rights);
2. 3,000,000 performance rights to vest on Carlow Castle mineral resource reaching 1.0m
oz Au equivalent (tranche 2 rights).
The performance rights were valued by 22 Corporate, Tranche 1 were valued using a
Monte Carlo Simulation Methodology (MCSM) and Tranche 2 using the Black-Scholes
model. The following assumptions were used in the valuation:
Underlying share price
Exercise price
Term (years)
Risk-free rate
Dividend yield
Volatility
30-day VWAP hurdle
Performance Period End Date
Fair value per right
Number of rights
Tranche 1
$0.081
$nil
1
0.279%
Nil
90.0%
$0.25
31/12/2022
$0.0204
3,000,000
Tranche 2
$0.081
$nil
1
0.279%
Nil
90.0%
n/a
31/12/2022
$0.0810
3,000,000
E. Additional disclosures relating to key management personnel
Shares held by Directors and Key Management Personnel
FY21/22
Name
M. Potter
A. Clayton
E. Mead
D. Smith
S. Dominy
G. Robertson¹
S. Boda
Balance at the
beginning of
the year
Received as
remuneration
Purchased/Net
Change
Other
-
2,000,000
4,483,870
-
-
-
-
4,983,870
-
-
-
-
-
-
-
-
-
5,250,000
-
-
-
4,000,002
-
9,250,002
Balance at
resignation/
the end of
year
-
7,250,000
4,483,870
-
-
4,000,002
-
15,733,872
¹Shares held at date of appointment 17 January 2022
Artemis Resources Limited Annual Financial Report 2022
49
REMUNERATION REPORT
E. Additional disclosures relating to key management personnel (continued)
Options and performance rights held by Directors and Key Management Personnel
FY21/22
Name
Options
M. Potter
A. Clayton
E. Mead
D. Smith
S. Dominy
G. Robertson
S.Boda
FY21/22
Name
Performance Rights
S.Boda
Balance at
appointment/
the beginning
of the year
20,000,000
60,000,000
7,500,000
9,500,000
-
-
-
97,000,000
Received as
remuneration
Net Change
Other
-
-
-
-
2,000,000
-
-
2,000,000
Balance at
resignation/
the end of
year
20,000,000
60,000,000
7,500,000
9,500,000
2,000,000
-
-
99,000,000
-
-
-
-
-
-
-
-
Balance at
appointment/
the beginning
of the year
Received as
remuneration
Net Change
Other
Balance at
resignation/
the end of
year
-
-
1,500,000
1,500,000
-
-
1,500,000
1,500,000
There are no other performance rights held by management personnel.
No performance rights were issued during the prior year.
Other transactions with key management personnel
Doraleda Pty Ltd1
Integrated CFO Solutions Pty Ltd2
Minerva Corporate Pty Ltd3
Kiran Capital Advisors Limited4
30 June 2022
$
48,336
108,000
97,711
-
254,047
1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest.
2 Company secretary fees $98,000 and director fees $10,000 paid to Integrated CFO Solutions Pty Ltd, a company
in which Mr Guy Robertson has an interest.
3 Director fees $53,961 (2021: $50,004) and accounting fees $43,750 (2021: $83,996) paid to Minerva Corporate
Pty Ltd, a company in which Mr Daniel Smith has an interest.
4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an
interest.
END OF AUDITED REMUNERATION REPORT
Artemis Resources Limited Annual Financial Report 2022
50
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Artemis Resources Limited for
the year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2022
B G McVeigh
Partner
51
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Revenue
Cost of sales
Fair value (loss)/gain on financial assets
Gain on disposal of exploration projects
Personnel costs
Occupancy costs
Legal fees
Consultancy costs
Notes
3
9
13
Compliance and regulatory expenses
4
(1,482,494)
Directors’ fees
Travel
Marketing expenses
Borrowing costs
Other expenses
Project and exploration expenditure write off
Share-based payments
Foreign exchange loss
LOSS BEFORE INCOME TAX
Income tax expense/benefit
LOSS FOR THE YEAR
Other comprehensive income, net of tax
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent entity
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
ATTRIBUTABLE TO:
Owners of the parent entity
Consolidated
30 June
2022
$
30 June
2021
$
33,389
133,815
-
(165,883)
1,734,962
(313,386)
(94,142)
(31,638)
(626,247)
(616,804)
(53,842)
(38,617)
708,289
9,946
(56,375)
(33,540)
(546,610)
(471,802)
(140,710)
(920,675)
(9,440)
13
25
5
(103,295)
(232,106)
-
(28,461)
(461,931)
(342,811)
(4,696,301)
(7,113,105)
(112,200)
(1,401,000)
(539,533)
(409)
(7,529,345)
(10,483,611)
-
(7,529,345)
-
-
(10,483,611)
-
(7,529,345)
(10,483,611)
(7,529,345)
(10,483,611)
(7,529,345)
(10,483,611)
Basic loss per share - cents
Diluted loss per share - cents
23
23
(0.58)
(0.58)
(0.93)
(0.93)
The consolidated statement of profit or loss and other comprehensive income is to
be read in conjunction with the accompanying notes
Artemis Resources Limited Annual Financial Report 2022
52
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Assets held for sale
Other financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Intangible assets
Right-of-use assets
Exploration and evaluation expenditure
Development expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Current lease liabilities
Employee benefits obligation
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
30 June
2022
$
6,106,222
282,701
-
6,283,560
12,672,483
95,741
3,523
153,980
27,323,626
27,420,924
54,997,794
67,670,277
30 June
2021
$
9,082,554
309,546
1,600,000
533,542
11,525,642
90,507
33,732
-
26,603,617
23,473,919
50,201,775
61,727,417
2,931,542
44,140
39,473
3,015,155
2,643,864
-
2,170
2,646,034
109,311
5,223,259
5,332,570
8,347,725
59,322,552
-
1,413,123
1,413,123
4,059,157
57,668,260
114,927,239
2,725,913
(58,330,600)
59,322,552
105,855,802
3,376,640
(51,564,182)
57,668,260
Notes
6
7
8
9
10
11
12
13
14
15
12
16
12
17
18
19
The consolidated statement of financial position should be read in conjunction with
the accompanying notes.
Artemis Resources Limited Annual Financial Report 2022
53
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Consolidated
Issued
Capital
Reserves
Accumulated
Losses
Total
Equity
Balance at 1 July 2021
Loss for the year
Total comprehensive loss for the
year
Issue of shares
Cost of share issue
Lapse of options
Share-based payments
Balance at 30 June 2022
$
$
$
$
105,855,802
3,376,640
(51,564,182)
57,668,260
-
-
9,508,026
(436,589)
-
-
-
-
-
-
(7,529,345)
(7,529,345)
(7,529,345)
(7,529,345)
-
-
9,508,026
(436,589)
(762,927)
762,927
-
112,200
-
112,200
114,927,239
2,725,913
(58,330,600)
59,322,552
Consolidated
Issued
Capital
Reserves
Accumulated
Losses
Total
Equity
$
$
$
$
92,294,878
3,257,318
(42,105,810)
53,446,386
Balance at 1 July 2020
Loss for the year
Total comprehensive loss for the
year
Issue of shares
Cost of share issue
Lapse of options
-
-
14,359,343
(1,054,858)
-
-
-
-
(10,483,611)
(10,483,611)
-
-
-
(1,025,239)
1,025,239
Conversion of options
256,439
(256,439)
Share-based payments
Balance at 30 June 2021
-
1,401,000
105,855,802
3,376,640
(51,564,182)
57,668,260
(10,483,61
1)
(10,483,61
1)
14,359,343
(1,054,858)
-
-
1,401,000
-
-
The consolidated statement of changes in equity should be read in conjunction with
the accompanying notes.
Artemis Resources Limited Annual Financial Report 2022
54
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Receipts from government assistance
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
Payments for purchase of plant and equipment
Payments for exploration and evaluation
Payment for development expenditure
Payments for purchase of investments
Proceeds on sale of project
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Cost of share issue
Exercise of options
Repayment of short-term loan
Repayment of lease liabilities
NET CASH PROVIDED BY FINANCING ACTIVITIES
Consolidated
30 June
2022
$
30 June
2021
$
19,989
(3,893,173)
1,216
7,146
(3,864,822)
308,598
(62,021)
(7,950,756)
(136,869)
(224,499)
500,000
(7,565,547)
9,443,279
(436,589)
-
-
(13,120)
8,993,570
26
27
27
35,000
(2,082,967)
7,404
105,970
(1,934,593)
7,406,323
(9,750,122)
(59,765)
(508,942)
369,000
(2,543,506)
12,599,475
(608,828)
1,313,838
(116,671)
(40,824)
13,146,990
Net (decrease)/increase in cash held
Cash at the beginning of the period
Effects of exchange rate changes on the balance of
cash held in foreign currencies
(2,436,799)
9,082,554
8,668,891
412,138
(539,533)
1,525
CASH AT THE END OF THE YEAR
6
6,106,222
9,082,554
The consolidated statement of cash flows is to be read in conjunction with the
accompanying notes.
Artemis Resources Limited Annual Financial Report 2022
55
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial report is a general-purpose financial report prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other
authoritative pronouncements of the Australian Standards Board, International Financial
Reporting Standards as issued by the International Accounting Standards Board and the
requirements of the Corporations Act 2001. The Group is a for profit entity for financial
reporting purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the AASB has concluded
would result in a financial report containing relevant and reliable information about
transactions, events and conditions. Compliance with Australian Accounting Standards
ensures that the financial statements and notes also comply with International Financial
Reporting Standards. Material accounting policies adopted in the preparation of this
financial report are presented below and have been consistently applied unless otherwise
stated.
The consolidated financial statements have been prepared on the basis of historical costs,
except for the revaluation of certain non-current assets and financial instruments. Cost is
based on the fair values of the consideration given in exchange for assets. All amounts are
presented in Australian dollars, unless otherwise stated.
The financial statements are presented in Australian dollars which is Artemis Resources
Limited’s functional and presentation currency.
These financial statements were authorised for issue on 30 September 2022.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the
Company and entities controlled by the Company and its subsidiaries. Control is achieved
when the Company:
• has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement in with the investee;
and
• has the ability to its power to affect its returns.
The Company reassess whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements listed above.
When the Company has less than a majority of the voting rights if an investee, it has the
power over the investee when the voting rights are sufficient to give it the practical ability
to direct the relevant activities of the investee unilaterally. The Company considers all
relevant facts and circumstances in assessing whether or not the Company’s voting rights
are sufficient to give it power, including:
•
the size of the Company’s holding of voting rights relative to the size and dispersion
of holdings of the other vote holders;
Artemis Resources Limited Annual Financial Report 2022
56
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or
does not have, the current ability to direct the relevant activities at the time that
decisions need to be made, including voting patterns at previous shareholder
meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary
and ceases when the Company loses control of the subsidiary. Specifically, income and
expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated statement of profit or loss and comprehensive income from the date the
Company gains control until the date when the Company ceases to control the subsidiary.
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group
losing control over the subsidiaries are accounted for as equity transactions. The carrying
amounts of the Group’s interests and the non-controlling interests are adjusted to reflect
the changes in their relative interests in subsidiaries. Any difference between the amount
paid by which the non-controlling interests are adjusted, and the fair value of the
consideration paid or received is recognised directly in equity and attributed to the owners
of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss
and is calculated as the difference between:
•
•
The aggregate of the fair value of the consideration received and the fair value of any
retained interest; and
The previous carrying amount of the assets (including goodwill), and liabilities of the
subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that
subsidiary are accounted for as if the Group had directly disposed of the related assets or
liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category
of equity as specified/permitted by the applicable AASBs). The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair
value on initial recognition for subsequent accounting under AASB 139, when applicable,
the cost on initial recognition of an investment in an associate or a joint venture.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more
businesses.
A business combination is accounted for by applying the acquisition method, unless it is a
combination involving entities or businesses under common control. The business
combination will be accounted for from the date that control is attained, whereby the fair
value of the identifiable assets acquired, and liabilities (including contingent liabilities)
assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or
included.
liability resulting from a contingent consideration arrangement
Subsequent to initial recognition, contingent consideration classified as equity is not
remeasured and its subsequent
is also
Artemis Resources Limited Annual Financial Report 2022
57
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
settlement is accounted for within equity. Contingent consideration classified as an asset
or liability is remeasured each reporting period to fair value, recognising any change to fair
value in profit or loss, unless the change in value can be identified as existing at acquisition
date.
All transaction costs incurred in relation to the business combination are expensed to the
consolidated statement of comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a
bargain purchase.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost,
less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Unless the Group is
reasonably certain to obtain ownership of the leased asset at the end of the lease term,
the recognised right-of-use assets are depreciated on a straight-line basis over the shorter
of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the
Group and payments of penalties for terminating a lease, if the lease term reflects the
Group exercising the option to terminate. The variable lease payments that do not depend
on an index or a rate are recognised as expense in the period on which the event or
condition that triggers the payment occurs. In calculating the present value of lease
payments, the Group uses the incremental borrowing rate at the lease commencement
date if the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. In addition, the carrying amount of
lease liabilities is remeasured if there is a modification, a change in the lease term, a
change in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of
machinery and equipment (i.e., those leases that have a lease term of 12 months or less
from the commencement date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases of office equipment that are
considered of low value (i.e., below $5,000). Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a straight-line basis over the lease
term.
Artemis Resources Limited Annual Financial Report 2022
58
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Adoption of New a Revised Accounting Standards or Interpretations
In the year ended 30 June 2022, the Directors have reviewed all of the new and revised
Standards and Interpretations issued by the AASB that are relevant to the Company and
effective for the current reporting period. As a result of this review, the Directors have
determined that there is no material impact of the new and revised Standards and
Interpretations on the Group and therefore, no material change is necessary to Group
accounting policies.
Any new, revised or amending Accounting Standards or Interpretations that are yet to be
mandatory have not been early adopted.
The Directors have also reviewed all the new and revised Standards and Interpretations in
issue not yet adopted for the year ended 30 June 2022. As a result of this review the
Directors have determined that there is no material impact of the Standards and
Interpretations in issue not yet adopted by the Company.
Going Concern
For the year ended 30 June 2022, the Group recorded a loss of $7,529,345 (2021: Loss of
$10,483,611) and had net cash outflows from operating activities of $3,864,822 (2021:
$1,934,593) and has a net working capital surplus of $9,657,329 as at 30 June 2021 (2021:
$8,879,608).
The Directors believe that it is reasonably foreseeable that the Company and Group will
continue as a going concern and that it is appropriate to adopt the going concern basis
in the preparation of the financial report after consideration of the following factors:
•
•
•
•
The Group has cash at bank of $6,106,222 and net assets of $59,322,552 as at 30 June
2022;
The Company has raised $9,508,026 in new capital during the year and Directors are
of the view that should the Company require additional capital it has the ability to raise
further capital to enable the Group to meet scheduled exploration expenditure
requirements and future plans on the development assets;
The ability of the Group to scale back certain parts of their activities that are non-
essential so as to conserve cash; and
The Group retains the ability, if required, to wholly or in part dispose of interests in
mineral exploration and development assets, and liquid investments.
These factors indicate a material uncertainty which may cast significant doubt as to
whether the Company and Group will continue as a going concern and therefore whether
they will realise their assets and extinguish their liabilities in the normal course of business
and at the amounts stated in the financial report.
Artemis Resources Limited Annual Financial Report 2022
59
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income taxes
The income tax expense (benefit) for the year comprises current income tax expense
(income) and deferred tax expense (income). Current income tax expense charged to
the statement of profit or loss and other comprehensive income is the tax payable on
taxable income calculated using applicable income tax rates enacted, or substantially
enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the
amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax
liability balances during the year as well unused tax losses. Current and deferred income
tax expense (income) is charged or credited directly to equity instead of the profit or loss
when the tax relates to items that are credited or charged directly to equity. Deferred tax
assets and liabilities are ascertained based on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets also result where amounts have been fully expensed but future tax
deductions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply
to the period when the asset is realised or the liability is settled, based on tax rates enacted
or substantively enacted at reporting date. Their measurement also reflects the manner in
which management expects to recover or settle the carrying amount of the related asset
or liability. Deferred tax assets relating to temporary differences and unused tax losses are
recognised only to the extent that it is probable that future taxable profit will be available
against which the benefits of the deferred tax asset can be utilised. Where temporary
differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the
reversal of the temporary difference can be controlled and it is not probable that the
reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists
and it is intended that net settlement or simultaneous realisation and settlement of the
respective asset and liability will occur. Deferred tax assets and liabilities are offset where
a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur in future periods in which
significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.
Artemis Resources Limited Annual Financial Report 2022
60
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation costs
Exploration and evaluation expenditures in relation to each separate area of interest are
recognised as an exploration and evaluation asset in the year in which they are incurred
where the following conditions are satisfied:
the rights to tenure of the area of interest are current; and
•
• at least one of the following conditions is also met:
the exploration and evaluation expenditures are expected to be recouped through
successful development and exploitation of the area of interest, or alternatively, by
its sale; or
exploration and evaluation activities in the area of interest have not at the balance
date reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of
rights to explore, studies, exploratory drilling, trenching and sampling and associated
activities and an allocation of depreciation and amortised of assets used in exploration
and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to
operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for
impairment when facts and
circumstances suggest that the carrying amount of an exploration and evaluation asset
may exceed its recoverable amount. The recoverable amount of the exploration and
evaluation asset (for the cash generating unit(s) to which it has been allocated being no
larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised estimate of its recoverable amount, but
only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for
the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular
area of interest, the relevant exploration and evaluation asset is tested for impairment and
the balance is then reclassified to development.
In determining the costs of site restoration, there is uncertainty regarding the nature and
extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be
completed within one year of abandoning the site.
Artemis Resources Limited Annual Financial Report 2022
61
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the
financial asset expire, or when the financial asset and substantially all the risks and rewards
are transferred.
A financial liability is derecognised when it is extinguished, discharged, cancelled or
expires.
Classification and subsequent measurement
All financial assets are initially measured at fair value adjusted for transaction costs (where
applicable). For the purpose of subsequent measurement, all the financial assets, are
classified as amortised cost.
All income and expenses relating to financial assets that are recognised in profit or loss are
presented within finance costs, finance income or other financial items, except for
impairment of other receivables which is presented within other expenses.
Financial assets at fair value through profit or loss
(i)
Financial assets designated at fair value through profit or loss (‘FVTPL’) are carried at fair
value and any subsequent gains or losses are recognised in the statement of Profit or
Loss and Other Comprehensive Income.
(ii) Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following
conditions (and are not designated as FVTPL):
•
•
they are held within a business model whose objective is to hold the financial assets
to collect its contractual cash flows
the contractual terms of the financial assets give rise to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest
method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and
cash equivalents, and most other receivables fall into this category of financial instruments.
Other receivables
The Group makes use of a simplified approach in accounting for other receivables as well
as contract assets and records the loss allowance as lifetime expected credit losses. These
are the expected shortfalls in contractual cash flows, considering the potential for default
at any point during the life of the financial instrument. In calculating, the Group uses its
historical experience, external indicators and forward-looking information to calculate the
expected credit losses using a provision matrix.
The Group assess impairment of other receivables on a collective basis as they possess
shared credit risk characteristics they have been grouped based on the days past due.
Artemis Resources Limited Annual Financial Report 2022
62
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and
derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit
or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective
interest method except for derivatives and financial liabilities designated at FVTPL, which
are carried subsequently at fair value with gains or losses recognised in profit or loss (other
than derivative financial instruments that are designated and effective as hedging
instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that
are reported in profit or loss are included within finance costs or finance income.
Plant and equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where
applicable, any accumulated depreciation and impairment losses. Plant and equipment
are measured on the cost basis.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the company and the cost of the item can be measured reliably.
All other repairs and maintenance are charged to the income statement during the
financial period in which they are incurred.
Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the
asset is derecognised.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets
as follows:
Plant and Equipment – ranging from 2 to 20 years
The assets' residual values, useful lives and amortisation methods are reviewed, and
adjusted if appropriate, at each financial year end.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance
in
date, with
circumstances indicate that the carrying value may be impaired.
recoverable amount being estimated when events or changes
Artemis Resources Limited Annual Financial Report 2022
63
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The recoverable amount of plant and equipment is the higher of fair value less costs to sell
and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable
amount is determined for the cash-generating unit to which the asset belongs, unless the
asset's value in use can be estimated to approximate fair value.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds
its estimated recoverable amount. The asset or cash-generating unit is then written down
to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of profit or
loss and other comprehensive income in the cost of sales line item.
Intangible assets
Intangible assets acquired separately are recorded at cost less accumulated amortisation
and impairment. Amortisation is charged on a straight-line basis over their estimated useful
lives. The estimated useful life and amortisation method is reviewed at the end of each
annual reporting period, with any changes in these accounting estimates being
accounted for on a prospective basis.
Impairment of intangible assets other than goodwill
The Group assesses at each balance date whether there is an indication that an asset may
be impaired. If any such indication exists, or when annual impairment testing for an asset
is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of its fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets and the asset's value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or
cash-generating unit is considered impaired and is written down to its recoverable amount.
Development expenditure
Development expenditures represent the accumulation of all exploration, evaluation and
other expenditure incurred in respect of areas of interest in which mining is in the process
of commencing. When
the
commencement of production, such expenditure is carried forward as part of the mine
property only when substantial future economic benefits are thereby established,
otherwise such expenditure is classified as part of the cost of production.
further development expenditure
incurred after
is
Artemis Resources Limited Annual Financial Report 2022
64
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present
obligation as a result of development activities undertaken, it is probable that an outflow
of economic benefits will be required to settle the obligation, and the amount of the
provision can be measured reliably. The estimated future obligations include the costs of
abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the
expenditure required to settle the restoration obligation at the balance date. Future
restoration costs are reviewed annually and any changes in the estimate are reflected in
the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost
of the related asset and amortised on the same basis as the related asset, unless the
present obligation arises from the production of inventory in the period, in which case the
amount is included in the cost of production for the period. Changes in the estimate of the
provision for restoration and rehabilitation are treated in the same manner, except that
the unwinding of the effect of discounting on the provision is recognised as a finance cost
rather than being capitalised into the cost of the related asset.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other
short-term highly liquid investments with original maturities of 3 months or less, and bank
overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on
the consolidated statement of financial position.
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities
for goods and services provided to the Group prior to the end of the financial year that
are unpaid and arise when the Group becomes obliged to make future payments in
respect of the purchase of these goods and services. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months.
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual leave, long
service leave and sick leave expected to be settled within 12 months of the balance date
are recognised in other payables in respect of employees’ services up to the balance
date. They are measured at the amounts expected to be paid when the liabilities are
settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken
and are measured at the rates paid or payable.
Artemis Resources Limited Annual Financial Report 2022
65
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Liabilities accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave not expected to be settled within 12 months of the balance
date are recognised in non-current other payables in respect of employees’ services up
to the balance date. They are measured as the present value of the estimated future
outflows to be made by the Group.
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. Provisions are not recognised for future operating losses.
Provisions are measured at the present value or management’s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. 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 discounting is used, the
increase in the provision due to the passage of time is recognised as an interest expense.
Revenue recognition
Interest revenue is recognised using the effective interest method. It includes the
amortisation of any discount or premium.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred
except borrowing costs that are directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period to get ready for its
intended use or sale. In this case the borrowing costs are capitalised as part of the cost of
such a qualifying asset.
The amount of borrowing costs relating to funds borrowed generally and used for the
acquisition of qualifying assets has been determined by applying a capitalisation rate to
the expenditures on those assets. The capitalisation rate comprises the weighted average
of borrowing costs incurred during the period.
Equity settled compensation
Share-based payments to employees are measured at the fair value of the instruments
issued and amortised over the vesting periods. Share-based payments to non-employees
are measured at the fair value of goods or services received or the fair value of the equity
instruments issued, if it is determined the fair value of the goods or services cannot be
reliably measured and are recorded at the date the goods or services are received. The
corresponding amount is recorded to the option reserve. The fair value of options is
determined using the Black-Scholes pricing model. The number of shares and options
expected to vest is reviewed and adjusted at the end of each reporting period such that
the amount recognised for services received as consideration for the equity instruments
granted is based on the number of equity instruments that eventually vest.
Artemis Resources Limited Annual Financial Report 2022
66
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where
the amount of GST incurred is not recoverable from the Australian Tax Office. In these
circumstances the GST is recognised as part of the cost of acquisition of the asset or as part
of an item of the expense. Receivables and payables in the consolidated statement of
financial position are shown inclusive of GST. Cash flows are presented in the consolidated
statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Parent entity disclosures
The financial information for the parent entity, Artemis Resources Limited, has been
prepared on the same basis as the consolidated financial statements.
Assets and Liabilities Held for Sale
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use.
This condition is regarded as met only when the asset (or disposal group) is available for
immediate sale in its present condition subject only to terms that are usual and customary
for sales for such asset (or disposal groups) and the sale is highly probable. Management
must be committed to the sale, which should be expected to qualify for recognition as a
complete sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of
the assets and liabilities of that subsidiary are classified as held for sale when the criteria
described above are met, regardless of whether the Group will retain a non-controlling
interest in it former subsidiary, after the sale.
Leases
The group’s leasing activities and how these are accounted for:
The group leases various offices with varying lengths from 1 to 3 years, some with extension
options.
Contracts may contain both lease and non-lease components. The Group allocates the
consideration in the contract to the lease and non-lease components based on their
relative stand-alone prices. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any
covenants other than the security interests in the leased assets. Leased assets may not be
used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at
which the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis.
Lease liabilities include the net present value of fixed payments, less any lease incentives
receivable.
Artemis Resources Limited Annual Financial Report 2022
67
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases (continued)
Lease payments to be made under reasonably certain extension options are also
included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally the case for leases in the Group, the
lessee’s incremental borrowing rate is used, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value to the right-
of-use asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the individual lessee as a
starting point, adjusted to reflect changes in financing conditions since third party
financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk
for leases held by the Group; which does not have recent third-party financing; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
The Group is exposed to potential future increases in variable lease payments based on
an index or rate, which are not included in the lease liability until they take effect. When
adjustments to lease payments based on an index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is
charged to profit or loss over the lease period so as to produce a constant periodic rate
of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
the amount of the initial measurement of lease liability;
•
• any lease payments made at or before the commencement date less any lease
incentives received;
• any initial direct costs; and
•
restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and
the lease term on a straight-line basis. If the Group is reasonably certain to exercise a
purchase option, the right-of-use asset is depreciated over the underlying asset’s useful
life.
Payments associated with short-term leases are recognised on a straight-line basis as an
expense in profit or loss (unless capitalised as a component of Plant Construction in
Progress). Short-term leases are leases with a lease term of 12 months or less.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of
Artemis Resources Limited Annual Financial Report 2022
68
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Use of estimates and judgements (continued)
assets, liabilities, income and expenses. Actual results may differ from these estimates.
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 and in
any future periods affected.
Exploration and evaluation, and development expenditure carried forward
The Group capitalises expenditure
relating to exploration and evaluation, and
development, where it is considered likely to be recoverable or where the activities have
not reached a stage which permits a reasonable assessment of the existence of reserves.
While there are certain areas of interest from which no reserves have been determined,
the Directors are of the continued belief that such expenditure should not be written off
since feasibility studies in such areas have not yet concluded.
The recoverability of the carrying amount of mine development expenditure carried
forward has been reviewed by the Directors. In conducting the review, the recoverable
amount has been assessed by reference to the higher of “fair value less costs to sell” and
“value in use”. In determining value in use, future cash flows are based on:
• Estimates of ore reserves and mineral resources for which there is a high degree of
confidence of economic extraction;
• Estimated production and sales levels;
• Estimate future commodity prices;
• Future costs of production;
• Future capital expenditure; and/or
• Future exchange rates.
Variations to expected future cash flows, and timing thereof, could result in significant
changes to the impairment test results, which in turn could impact future financial results.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference
to the fair value of the equity instruments at the date at which they are granted. The fair
value is determined by an external valuer using a Black-Scholes model, using the
assumptions detailed in Note 25.
Fair value of financial instruments
Management uses valuation techniques to determine the fair value of financial instruments
(where active market quotes are not available) and non-financial assets. This involves
developing estimates and assumptions consistent with how market participants would
price the instrument.
Provision for restoration and rehabilitation
The provision for restoration and rehabilitation has been estimated based on quotes
provided by third parties. The provision represents the best estimate of the present value of
the expenditure required to settle the restoration obligation at the reporting date.
Artemis Resources Limited Annual Financial Report 2022
69
NOTES TO THE FINANCIAL STATEMENTS
2. SEGMENT INFORMATION
AASB 8 Operating Segments requires operating segments to be identified on the basis of
internal reports about components of the Group that are regularly reviewed by the Chief
Operating Decision Maker in order to allocate resources to the segment and to assess its
performance.
The Group’s operating segments have been determined with reference to the monthly
management accounts used by the Chief Operating Decision Maker to make decisions
regarding the Group’s operations and allocation of working capital. Due to the size and
nature of the Group, the Board as a whole has been determined as the Chief Operating
Decision Maker.
a. Description of segments
The Board has determined that the Group has two reportable segments, being mineral
exploration activities and development expenditure. The Board monitors the Group based
on actual versus budgeted expenditure incurred by area of interest.
The internal reporting framework is the most relevant to assist the Board with making
decisions regard the Group and its ongoing exploration activities.
Artemis Resources Limited Annual Financial Report 2022
70
NOTES TO THE FINANCIAL STATEMENTS
2. SEGMENT INFORMATION (CONTINUED)
b. Segment information provided to the Board:
Exploration Activities
Development
Activities
Unallocated
Total
West Pilbara
East Pilbara Other Projects
Radio Hill
Corporate
$
$
$
$
$
$
30 June 2022
Segment revenue
Fair value loss on financial
assets
Segment expenses
Project and exploration
expenditure write off
Reportable segment loss
-
-
-
(4,696,301)
(4,696,301)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reportable segment assets
Reportable segment liabilities
20,328,519
-
4,915,951
-
2,079,156
-
27,420,924
5,223,259
Additions to non-current assets
5,285,613
2,248,774
1,046,962
3 947 005
30 June 2021
Segment revenue
Fair value gain on financial
assets
Segment expenses
Project and exploration
expenditure write off
Borrowing costs
Reportable segment loss
Reportable segment assets
Reportable segment liabilities
Additions to non-current assets
-
-
-
(7,113,105)
-
(7,113,105)
21,287,631
-
7,193,791
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,596,883
-
2,247,146
2,719,103
-
597,630
23,473,919
1,413,123
59,765
33,389
33,389
(165,883)
(2,700,550)
-
(2,833,044)
12,925,727
3,124,466
215,988
(165,883)
(2,700,550)
(4,696,301)
(7,529,345)
67,670,277
8,347,725
12,744,342
133,815
133,815
708,289
(4,184,149)
-
(28,461)
(3,370,506)
11,649,881
2,646,034
15,263
708,289
(4,184,149)
(7,113,105)
(28,461)
(10,483,611)
61,727,417
4,059,157
10,113,595
Artemis Resources Limited Annual Financial Report 2022
71
NOTES TO THE FINANCIAL STATEMENTS
3. REVENUE
Other revenue
Government assistance – cash flow boost
Other sundry income
Interest received
Consolidated
30 June 2022
$
30 June 2021
$
-
32,173
1,216
33,389
74,093
52,318
7,404
133,815
4. COMPLIANCE AND REGULATORY EXPENSES
Consolidated
30 June
2021
$
30 June
2022
$
AIM listing expenses¹
Other regulatory costs
1,239,575
242,919
1,482,494
-
140,710
140,710
¹The Company dual listed on the London AIM exchange on 7 February 2022.
5. INCOME TAXES
(a) Income tax expense
Current tax
Deferred tax
Income tax expense
Consolidated
30 June 2022
$
30 June 2021
$
-
-
-
-
-
-
(b) Income tax recognised in the statement of profit or loss and other comprehensive
income
Loss before tax
Tax at 30% (2021: 30%)
Tax effect on non-assessable income
Tax effect of non-deductible expenses
Exploration expenditure
Timing differences not brought to account
Income tax expense
Consolidated
30 June 2022
$
(7,529,345)
(2,258,804)
-
83,425
1,408,891
766,488
-
30 June 2021
$
(10,483,611)
(3,145,083)
(212,487)
420,300
2,133,932
803,338
-
Artemis Resources Limited Annual Financial Report 2022
72
NOTES TO THE FINANCIAL STATEMENTS
Income Taxes (continued)
(c) Deferred tax balances
Deferred tax assets comprise:
Tax losses carried forward
Prior year adjustment
Employee benefits obligation
Provisions
Deferred tax liabilities comprise:
Capitalised exploration costs
Net deferred tax asset unrecognised
(d) Analysis of deferred tax assets
Consolidated
30 June 2022
$
30 June 2021
$
15,886,778
-
11,842
1,566,977
17,465,597
8,197,088
8,197,088
9,268,509
10,706,790
1,592,017
651
423,937
12,723,395
8,491,085
8,491,085
4,232,310
Potential deferred tax assets attributable to tax losses and exploration expenditure
carried forward have not been brought to account at 30 June 2022 because the directors
do not believe it is appropriate to regard realisation of the deferred tax assets as probable
at this point in time. These benefits will only be obtained if:
•
the Group derives future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the loss and exploration expenditure to be
realised;
•
the Group continues to comply with conditions for deductibility imposed by law; and
• no changes in tax legislation adversely affect the company in realising the benefit from
the deductions for the loss and exploration expenditure.
The applicable tax rate is the national tax rate in Australia for companies, which is 25% at
the reporting date.
6. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand and account balances with banks
and investments in money market instruments, net of outstanding bank overdrafts. Cash
and cash equivalents included in the consolidated statement of cash flows comprise the
following amounts:
Consolidated
30 June 2022
$
30 June 2021
$
Cash and cash equivalents
6,106,222
9,082,554
7. OTHER RECEIVABLES
Other receivables
GST receivables
Prepayments
Consolidated
30 June 2022
$
30 June 2021
$
93,694
10,982
178,025
282,701
12,580
156,057
140,909
309,546
The value of trade and other receivables considered by the Directors to be past due or
impaired is nil (2021: Nil).
Artemis Resources Limited Annual Financial Report 2022
73
NOTES TO THE FINANCIAL STATEMENTS
8. ASSETS HELD FOR SALE
Consolidated
30 June 2022
$
30 June
2021
$
Assets held for sale
-
1,600,000
In the 2021 financial year the Company entered into a binding option agreement with
GreenTech Metals Limited (GreenTech) to sell GreenTech non-core tenements with a
carrying value of $1.6 million in cash and shares in GreenTech. The transaction was
completed in the current financial year.
9. OTHER FINANCIAL ASSETS
Current
Fair Value Through Profit or Loss
Shares in listed equity securities (Level 1)
Movement in other financial assets
Opening balance
Additions - cash
Additions - non-cash1
Disposals
Fair value (loss)/gain
Closing balance
Consolidated
30 June 2022
$
30 June 2021
$
6,283,560
533,542
Consolidated
30 June 2022
30 June 2021
$
533,542
224,499
6,000,000
(308,598)
(165,883)
6,283,560
$
6,586,551
508,942
136,083
(7,406,323)
708,289
533,542
¹ The Company sold Artemis’ 70% joint venture interest in the Munni Munni platinum group
metals project to Alien Metals Limited (LON:UFO) (Alien) a company incorporated in the United
Kingdom and listed on the London Stock Exchange (LSE), for 358,617,818 shares in UFO at
GBP0.08 per share for an amount of $4,650,000. The sale realised a profit of $2,263,931.
During the financial year the Company sold non-core tenements to GreenTech Metals Limited
(ASX:GRE) for 6,750,000 shares in GRE at $0.20 for an amount of $1,350,000 and a recovery of
exploration expenditure in the amount of $250,000.
During the 2021 financial year, the Group sold tenements with a carrying value of $494,977 for
proceeds of $369,000 in cash and 37,357,190 shares in Alien.
Artemis Resources Limited Annual Financial Report 2022
74
NOTES TO THE FINANCIAL STATEMENTS
10. PLANT AND EQUIPMENT
Consolidated
30 June 2022
$
30 June 2021
$
Computer equipment - at cost
Less: Accumulated depreciation
Total computer equipment at net book value
Furniture and fittings - at cost
Less: Accumulated depreciation
Total furniture and equipment at net book value
Motor vehicles – at cost
Less: Accumulated depreciation
Total motor vehicles at net book value
81,814
(54,705)
27,109
115,319
(88,815)
26,504
52,855
(10,727)
42,128
60,347
(23,591)
36,756
114,085
(62,534)
51,551
2,950
(750)
2,200
Total plant and equipment
95,741
90,507
Reconciliation of movement during the year
Reconciliations of the carrying amounts for each class of plant and equipment are set out
below:
Computer equipment:
Carrying amount at the beginning of the year
- Addition
- Depreciation
Carrying amount at the end of the year
Furniture and fittings
Carrying amount at the beginning of the year
- Addition
- Disposal
- Depreciation
Carrying amount at the end of the year
Motor vehicles
Carrying amount at the beginning of the year
- Additions
- Amortisation
Carrying amount at the end of the year
Consolidated
30 June 2022
$
30 June 2021
$
36,756
8,532
(18,179)
27,109
51,551
2,820
(1,585)
(26,282)
26,504
2,200
50,655
(10,727)
42,128
43,659
4,376
(11,279)
36,756
71,844
10,887
-
(31,180)
51,551
2,200
-
-
2,200
Artemis Resources Limited Annual Financial Report 2022
75
NOTES TO THE FINANCIAL STATEMENTS
11. INTANGIBLE ASSETS
Consolidated
30 June 2022
$
30 June 2021
$
Computer Software - at cost
Less: Accumulated amortisation
Total computer software at net book value
151,262
(147,739)
3,523
151,262
(117,530)
33,732
Reconciliation of movement during the year:
Computer Software:
Carrying amount at the beginning of the year
- Disposal
- Amortisation
Carrying amount at the end of the year
12. LEASES
Consolidated
30 June 2022
$
30 June 2021
$
33,732
-
(30,209)
3,523
71,676
(103)
(37,841)
33,732
Amounts recognised in the balance sheet:
Consolidated
30 June 2022
$
30 June 2021
$
Right-of-use assets
Offices
Total right-of-use assets
Lease liabilities
Current
Non-current
Total right-of-use liabilities
Movement in right-of-use assets
Right-of-use assets opening balance
Add: New leases
Less: Amortisation
Right-of-use assets closing balance
153,980
153,980
44,140
109,311
153,451
-
-
-
-
-
Consolidated
30 June 2022
$
30 June 2021
$
-
166,571
(12,591)
153,980
35,442
-
(35,442)
-
Artemis Resources Limited Annual Financial Report 2022
76
NOTES TO THE FINANCIAL STATEMENTS
12. LEASES (CONTINUED)
Movement in lease liabilities
Lease liability recognised at start of year
New lease
Add: Interest Expense
Less: Principal repayment
Closing balance
Consolidated
30 June 2022
30 June 2021
$
-
166,571
2,999
(16,119)
153,451
$
40,824
-
805
(41,629)
-
a) Amounts recognised in the statement of profit or loss:
Depreciation charge of right-of-use assets
Offices
Total right-of-use assets
Interest expense (included in finance cost)
Expenses relating to short-term leases (included
in administrative expenses)
30 June 2022
30 June 2021
$
$
12,591
12,591
2,999
69,716
35,442
35,442
805
33,540
The total cash outflow for leases during the year ended 30 June 2022 was $13,120 (2021:
$40,824).
Artemis Resources Limited Annual Financial Report 2022
77
NOTES TO THE FINANCIAL STATEMENTS
13. EXPLORATION AND EVALUATION EXPENDITURE
Consolidated
30 June 2022
$
30 June 2021
$
Exploration and evaluation expenditure
27,323,626
26,603,617
Exploration and Evaluation Phase Costs
Costs capitalised on areas of interest have been reviewed for impairment factors, such as
resource prices, ability to meet expenditure going forward and potential resource
downgrades. The Group has ownership or title to the areas of interest in respect of which
it has capitalised expenditure and has reasonable expectations that its activities are
ongoing.
Reconciliation of movement during the year:
Opening balance
Expenditure capitalised in current period
Carrying value of projects sold1
Exploration expenditure written off, other2
Transfer to assets held for sale
Closing balance
Consolidated
30 June 2022
$
26,603,617
8,581,349
(3,165,038)
(4,696,301)
-
27,323,626
30 June 2021
$
25,773,132
10,038,567
(494,977)
(7,113,105)
(1,600,000)
26,603,617
¹ The Company sold its 70% joint venture interest in the Munni Munni platinum group metals
project to Alien Metals Limited (LON:UFO) (Alien) a company incorporated in the United
Kingdom and listed on the London Stock Exchange (LSE), for 358,617,818 shares in UFO at
GBP0.08 per share for an amount of $4,650,000 and $250,000 in cash. The sale realised a
profit of $2,263,931.
In addition, during the financial year the Company sold non-core tenements to
GreenTech Metals Limited (ASX:GRE) for 6,750,000 shares in GRE at $0.20 for an amount of
$1,350,000, and recovery of expenditure in the amount of $250,000. $1,600,000 of
Exploration Expenditure in relation to these assets was classified as held for sale at 30 June
2021. The sale resulted in a loss of $528,969.
During the 2021 financial year, the Group sold tenements with a carrying value of $494,977
for proceeds of $369,000 in cash and 37,357,190 shares in Alien.
2The Group has rationalised the tenement/project portfolio during the year and has
impaired the carrying value of those tenements/projects disposed of and impaired the
carrying value of projects in excess of that deemed recoverable by the Directors.
Exploration expenditure has been carried forward as that expenditure is expected to be
recouped through successful development and exploration of the areas of interest.
Artemis Resources Limited Annual Financial Report 2022
78
NOTES TO THE FINANCIAL STATEMENTS
14. DEVELOPMENT EXPENDITURE
Development expenditure
Reconciliation of movement during the year:
Opening balance
Additions
Increase in rehabilitation provision (Note 17)
Closing balance
Impairment assessment
Consolidated
30 June 2022
$
27,420,924
30 June 2021
$
23,473,919
Consolidated
30 June 2022
$
23,473,919
136,869
3,810,136
27,420,924
30 June 2021
$
23,414,154
59,765
-
23,473,919
There were no indicators of impairment for the year ended 30 June 2022.
15. TRADE AND OTHER PAYABLES
Consolidated
30 June 2022
$
30 June 2021
$
Trade and other payables
2,931,542
2,643,864
16. EMPLOYEE BENEFITS OBLIGATIONS
Opening balance
Provision for the year
Benefits used or paid
Closing balance
Consolidated
30 June 2022
$
2,170
57,994
(20,691)
39,473
30 June 2021
$
10,133
-
(7,963)
2,170
Artemis Resources Limited Annual Financial Report 2022
79
NOTES TO THE FINANCIAL STATEMENTS
17. PROVISIONS
Provision for restoration and rehabilitation
Reconciliation of movement for the year
Opening balance
Increase in rehabilitation provision
Closing balance
Consolidated
30 June 2022
$
5,223,259
30 June 2021
$
1,413,123
1,413,123
3,810,136
5,223,259
1,413,123
-
1,413,123
During the year the Group revised its provision for restoration and rehabilitation to account for
changes in inflation and discount rates. This resulted in an increase in the provision. The
increase has been capitalised in the development asset.
18. SHARE CAPITAL
Consolidated
Consolidated
30 June 2022
No. of Shares No. of Shares
30 June 2021 30 June 2022 30 June 2021
$
$
Issued and Paid-up
Capital
Ordinary shares, fully paid 1,388,330,984
Reconciliation of movement during the year:
1,254,997,561
114,927,239
105,855,802
2022
Shares
2022
$
2021
Shares
2021
$
1,254,997,651
105,855,802
1,033,819,481
92,294,878
133,333,333
9,508,026
79,992,856
5,599,475
-
-
-
-
-
116,666,667
7,000,000
-
-
(436,589)
17,922,980
6,595,667
-
1,313,838
446,030
(1,054,858)
-
1,388,330,984
-
114,927,239
-
1,254,997,651
256,439
105,855,802
Opening balance
Shares issued to investors for
Placement
Shares issued to investors for
Placement
Shares issued on exercise of
options
Shares issued to advisors
Share issue costs
Transfer of share based
payments on conversion of
options
Closing balance
Term of Issue:
Ordinary Shares
Ordinary shares participate in dividends and are entitled to one vote per share at
shareholders meetings. In the event of winding up the Company, ordinary shareholders
rank after creditors and are entitled to any proceeds of liquidation in proportion to the
number of shares held.
Artemis Resources Limited Annual Financial Report 2022
80
NOTES TO THE FINANCIAL STATEMENTS
19. RESERVES
Consolidated
Consolidated
30 June 2022
No. of
options/rights
30 June 2021 30 June 2022 30 June 2021
No. of
options/rights
$
$
Share based payments
Options
Performance rights
138,729,195
6,000,000
145,300,624
-
2,695,313
30,600
2,725,913
3,376,640
-
3,276,640
No options were exercised during the year.
The unlisted options issued during the year or the prior year were valued using the Black-
Scholes model. The options outstanding as at 30 June 2022 were determined on the date
of grant using the following assumptions:
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Series 6
22/07/2019
0.08
100
0.935
3
Share price at this date ($)
0.029
Fair value per option ($)
Number of options
0.0121
10,000,000
Series 7
01/05/2020
0.04
100
0.63
3
0.031
0.0181
1,000,000
Class A
Director
Class B
Director
1/05/2020
0.05
89
0.64
2.4
1/05/2020
0.07
103
0.63
2.9
0.032
0.032
0.01301
43,500,000
0.0151
43,500,000
Class G
Director
Class E
Director
Class F
Director
Class A
Broker
Class B
Broker
Grant date
20/12/2021
2/12/2020
2/12/2020
01/05/2020
01/05/2020
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
0.15
95
0.391
3
0.086
0.0408
2,000,000
0.18
93
0.142
3
0.15
0.08123
5,000,000
0.25
93
0.142
5
0.15
0.07053
5,000,000
0.05
89
0.64
2.2
0.031
0.0117
7,500,000
0.07
103
0.63
3.2
0.031
0.0154
7,500,000
On the 30 December 2021 the Company issued 6 million performance rights to
employees and consultants of the Company.
The hurdles for the performance rights, which have a performance end date of 31
December 2022 are as follows:
1. 3,000,000 performance rights to vest on the share price achieving a 30-day VWAP in
period of $0.025 (tranche 1 rights);
2. 3,000,000 performance rights to vest on Carlow Castle mineral resource reaching 1.0m
oz Au equivalent (tranche 2 rights).
Artemis Resources Limited Annual Financial Report 2022
81
NOTES TO THE FINANCIAL STATEMENTS
19. RESERVES (CONTINUED)
The performance rights were valued by 22 Corporate, Tranche 1 were valued using a
Monte Carlo Simulation Methodology (MCSM) and Tranche 2 using the Black-Scholes
model. The following assumptions were used in the valuation:
Underlying share price
Exercise price
Term (years)
Risk-free rate
Dividend yield
Volatility
30-day VWAP hurdle
Performance Period End Date
Fair value per right
Number of rights
Tranche 1
$0.081
$nil
1
0.279%
Nil
90.0%
$0.25
31/12/2022
$0.0204
3,000,000
Tranche 2
$0.081
$nil
1
0.279%
Nil
90.0%
n/a
31/12/2022
$0.0810
3,000,000
On this basis the tranche 1 rights have been valued at $0.0204 per right and tranche 2
rights have been valued at $0.081 per right. The total value of the tranche 1 performance
rights of $61,200 will be expensed over the performance period.
No vesting expense has been recorded for tranche 2 rights as at balance date it is seen
as unlikely that these rights will vest.
For the year ended 30 June 2022, the Group has recognised $112,200 (2021: $1,401,000)
of share-based payment expense in the income statement in relation to share options
and performance rights issued.
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Board of Directors takes responsibility for managing financial risk exposures of the
Group. The Board monitors the Group’s financial risk management policies and exposures
and approves financial transactions. It also reviews the effectiveness of internal controls
relating to commodity price risk, counterparty credit risk, currency risk, liquidity risk and
interest rate risk. The Board meets approximately bi-monthly at which these matters are
reviewed.
The Board’s overall risk management strategy seeks to assist the Group in meeting its
financial targets, while minimising potential adverse effects on financial performance. Its
review includes the use of hedging derivative instruments, credit risk policies and future
cash flow requirements.
The Company’s principal financial instruments comprise cash, short term deposits and
securities in Australian or International listed companies. The main purpose of the financial
instruments is to earn the maximum amount of interest at a low risk to the company. The
Company also has other financial instruments such as trade debtors and creditors which
arise directly from its operations.
The main risks arising from the Company’s financial instruments are interest rate risk, credit
risk, foreign exchange risk, commodity risk and liquidity risk. The Board reviews and agrees
policies for managing each of these risks and they are summarised below:
Artemis Resources Limited Annual Financial Report 2022
82
NOTES TO THE FINANCIAL STATEMENTS
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(i) Interest Rate Risk
The Company’s exposure to interest rate risk is the risk that a financial instrument’s value
will fluctuate as a result of changes in market interest rates and the effective weighted
average interest rate for each class of financial assets and financial liabilities.
The following table demonstrates the sensitivity to a reasonably possible change in interest
rates on the following financial assets and liabilities:
FY2022
Carrying
Amount
Effect on profit before
tax
Effect on pre-tax equity
+1%
-1%
+1%
-1%
Financial Assets
Cash and cash
equivalents1
Trade and other
receivables2
Other financial
assets5
6,106,222
61,062
(61,062)
61,062
(61,062)
282,701
-
-
-
-
6,283,560
12,672,483
-
61,062
-
(61,062)
-
61,062
-
(61,062)
Financial liabilities
Trade and other
payables3
Financial Liabilities4
2,931,542
153,451
2,084,993
Total increase/(decrease)
-
-
-
61,062
-
-
-
(61,062)
-
-
-
61,062
-
-
-
(61,062)
FY2021
Carrying
Amount
Effect on profit before
tax
Effect on pre-tax equity
+1%
-1%
+1%
-1%
9,082,554
90,826
(90,826)
90,826
(90,826)
Financial Assets
Cash and cash
equivalents1
Trade and other
receivables2
Other financial
assets5
Financial liabilities
Trade and other
payables3
309,546
533,542
9,925,642
2,643,864
2,643,864
Total increase/(decrease)
-
-
-
-
-
90,826
-
(90,826)
-
90,826
-
(90,826)
-
-
-
-
-
90,826
-
(90,826)
-
90,826
-
(90,826)
Artemis Resources Limited Annual Financial Report 2022
83
NOTES TO THE FINANCIAL STATEMENTS
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
1 Cash and cash equivalents are denominated in both AUD and GBP. No funds were held
in foreign currencies in 2021. The weighted average interest rate for the year ended 30
June 2022 was 0.00% (2021: 0.03%). No other financial assets or liabilities are interest
bearing.
2 Trade and other receivables are denominated in AUD and are not interest bearing.
3 Trade and other payables at balance date are denominated mainly in AUD and are not
interest bearing.
4 Financial liabilities are lease liabilities and are not interest bearing.
5 Other financial assets are designated in AUD and are non-interest bearing.
(ii) Credit Risk
Credit risk refers to the risk that a counter-party will default on its contractual obligations
resulting in financial loss to the Company. The Company has adopted the policy of only
dealing with credit worthy counterparties and obtaining sufficient collateral or other
security where appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company does not have any significant credit risk exposure to any single counterparty
or any group of counterparties having similar characteristics. The carrying amount of
financial assets recorded in the financial statements, net of any provisions for losses,
represents the Company’s maximum exposure to credit risk.
(iii) Foreign Exchange Risk
The Company had the following British Pound denominated assets and liabilities at year
end.
Cash
Cash and cash equivalents
Consolidated
30 June 2022
30 June 2021
2,593,744
-
The following tables demonstrate the sensitivity to a reasonably possible change in USD
exchange rate, with other variables held constant.
Net impact of
strengthening/(weakening) of AUD on
GBP assets/liabilities outlined above
Change
in GBP
rate
Effect on profit
before tax
Effect on pre-
tax equity
FY2022
FY2021
+5%
-5%
+5%
-5%
129,687
(129,687)
-
-
129,687
(129,687)
-
-
The following tables demonstrate the sensitivity to a reasonably possible change in CAD
exchange rate, with other variables held constant.
Artemis Resources Limited Annual Financial Report 2022
84
NOTES TO THE FINANCIAL STATEMENTS
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(iv) Market Risk
The Company’s listed investments are affected by market price volatility. The following
table shows the effect of market price changes.
Change
in year
end
price
+5%
-5%
+5%
-5%
Effect on profit
before tax
$
Effect on pre-
tax equity
$
314,178
(314,178)
26,677
(26,677)
314,178
(314,178
26,677
(26,677)
FY2022
FY2021
(v) Liquidity Risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility
through the use of bank loans, convertible notes and finance leases. Cash flows from
financial assets reflect management’s expectation as to the timing of realisation. Actual
timing may therefore differ from that disclosed. The timing of cash flows presented in the
table to settle financial liabilities reflects the earliest contractual settlement dates and does
not reflect management’s expectations that banking facilities will roll forward.
The following tables below reflect an undiscounted contractual maturity analysis for
financial liabilities.
FY2022
Within 1 year
1 to 5
years
Over 5
years
Total
Financial liabilities due for payment
Trade and other payables
Lease liabilities
Total contractual outflows
2,931,542
44,140
2,975,682
-
109,311
109,311
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total anticipated inflows
Net inflow on financial instruments
6,106,222
282,701
6,283,560
12,672,483
9,696,801
-
-
-
-
-
-
-
-
-
-
-
-
-
2,931,542
153,451
3,084,993
6,106,222
282,701
6,283,560
12,672,483
9,587,490
FY2021
Within 1 year
1 to 5
years
Over 5
years
Total
Financial liabilities due for payment
Trade and other payables
Financial liabilities
Total contractual outflows
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total anticipated inflows
Net inflow on financial instruments
2,643,864
-
2,643,864
9,082,554
309,546
533,542
9,925,642
7,281,778
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,643,864
-
2,643,864
9,082,554
309,546
533,542
9,925,642
7,281,778
Artemis Resources Limited Annual Financial Report 2022
85
NOTES TO THE FINANCIAL STATEMENTS
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
Management and the Board monitor the Group’s liquidity reserve on the basis of expected
cash flow. The information that is prepared by senior management and reviewed by the
Board includes:
(i) Annual cash flow budgets;
(ii) Monthly rolling cash flow forecasts.
(vi) Net Fair Value
The carrying amount of financial assets and financial liabilities recorded in the financial
statements represents their respective net fair values, determined in accordance with the
accounting policies disclosed in Note 1.
21. COMMITMENTS FOR EXPENDITURE
The Group currently has commitments for expenditure at 30 June 2022 on its Australian
exploration tenements as follows:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Consolidated
30 June 2022
$
30 June 2021
$
656,820
2,776,060
400,900
3,833,780
1,196,013
2,317,722
1,181,899
4,695,634
The Company evaluates its tenements and exploration program on an annual basis and
may elect not to renew tenement licences if it deems appropriate.
Artemis Resources Limited Annual Financial Report 2022
86
NOTES TO THE FINANCIAL STATEMENTS
22. RELATED PARTY DISCLOSURES
(a) Refer to the Remuneration Report contained in the Directors’ Report for details of the
remuneration paid or payable to each member of the Group’s Key Management
Personnel for the year ended 30 June 2022. Key Management Personnel for the year
ended 30 June 2022 comprised the Directors and the General Manager Exploration.
(b) The total remuneration paid to Key Management Personnel of the Company and the
Group during the year are as follows:
Short term employee benefits
Share based payment
Superannuation
Consolidated
30 June 2022
$
30 June 2021
$
1,182,804
89,250
24,042
1,296,096
1,153,653
1,401,000
36,074
2,590,727
(c) Remuneration options and performance rights: As at 30 June 2022, the outstanding
options and performance rights that were granted to key Management Personnel in
previous and current reporting periods comprised of 99,000,000 options and 1,500,000
performance rights.
(d) Share and option holdings: All equity dealings with directors have been entered into
with terms and conditions no more favourable than those that the entity would have
adopted if dealing at arm’s length.
(e) Related party transactions
Doraleda Pty Ltd1
Integrated CFO Solutions2
Minerva Corporate Pty Ltd3
Kiran Capital Advisors Limited4
Consolidated
30 June 2022
$
30 June 2021
$
48,336
108,000
97,711
-
254,047
188,225
-
134,000
16,666
338,891
1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest.
2 Company secretary fees $98,000 and director fees $10,000 paid to Integrated CFO Solutions, a company in
which Mr Guy Robertson has an interest.
3 Director fees $53,961 (2021: $50,004) and accounting fees $43,750 (2021: $83,996) paid to Minerva Corporate
Pty Ltd, a company in which Mr Daniel Smith has an interest.
4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an
interest.
Artemis Resources Limited Annual Financial Report 2022
87
NOTES TO THE FINANCIAL STATEMENTS
23. EARNINGS PER SHARE
The calculation of basic earnings and diluted earnings per share at 30 June 2022 was
based on the loss attributable to shareholders of the parent company of $7,529,345 (2021:
Loss $10,483,611):
Basic loss per share
Diluted loss per share
Weighted average number of ordinary shares:
Used in calculating basic earnings per ordinary
share
Dilutive potential ordinary shares
Used in calculating diluted earnings per share
24. AUDITOR’S REMUNERATION
Auditor of parent entity
Audit fees – HLB Mann Judd
Taxation services
25. SHARE-BASED PAYMENTS
Consolidated
30 June 2022
$
(0.58)
(0.58)
30 June 2021
$
(0.93)
(0.93)
No of Shares
No of Shares
1,307,235,094
1,131,789,115
-
-
1,307,235,094
1,131,789,115
Consolidated
30 June 2022
$
30 June 2021
$
58,464
19,750
78,214
47,027
5,000
52,027
Goods or services received or acquired in a share-based payment transaction are
recognised as an increase in equity if the goods or services were received in an equity-
settled share-based payment transaction or as a liability if the goods and services were
acquired in a cash settled share-based payment transaction.
For equity-settled share-based transactions, goods or services received are measured
directly at the fair value of the goods or services received provided this can be estimated
reliably. If a reliable estimate cannot be made the value of the goods or services is
determined indirectly by reference to the fair value of the equity instrument granted.
Transactions with employees and others providing similar services are measured by
reference to the fair value at grant date of the equity instrument granted.
Options issued to Key Management Personnel during the year are outlined in the
remuneration report.
Artemis Resources Limited Annual Financial Report 2022
88
NOTES TO THE FINANCIAL STATEMENTS
25. SHARE-BASED PAYMENTS (CONTINUED)
The following share-based payment arrangements were in place during the prior and
current financial year:
Instruments
Date granted
Expiry date
Exercis
e price
No. of
instruments
2021
No. of
instruments
2020
Fair value
at grant
date
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
30 November
2018
21 November
2021
24 May 2019
22 July 2019
1 May 2020
1 May 2020
31 July 2022
31 July 2022
1 May 2023
31 July 2022
1 May 2020
31 January 2023
1 May 2020
1 May 2020
31 July 2022
31 July 2023
2 December 2020 2 December 2023
2 December 2020 2 December 2025
Options¹
30 September 2020
Lapsed
Options¹
30 September 2020
Lapsed
0.21
8,571,429
8,571,429
0.0800
0.08
0.08
0.04
0.05
0.07
0.05
0.05
0.18
0.25
0.10
0.125
13,729,195
13,729,195
10,000,000
20,000,000
1,000,000
4,000,000
43,500,000
43,500,000
43,500,000
43,500,000
7,500,000
7,500,000
7,500,000
7,500,000
5,000,000
5,000,000
5,000,000
5,000,000
0.0165
0.0121
0.0181
0.0130
0.0151
0.0130
0.0151
0.0812
0.0935
-
-
2,500,000
0.0537
2,500,000
0.0571
Options
20 December 2021 20 December 2023 0.15
2,000,000
-
0.0408
¹Options lapsed on resignation of Boyd Timler in the prior year
Movement in share-based arrangements on issue
(a) Options
Balance at beginning of year
Options granted during the year
Options exercised
Options forfeited/lapsed during the year
Balance at end of year
Number of instruments
30 June 2022
30 June 2021
145,300,624
2,000,000
-
(8,571,429)
138,729,195
158,663,462
15,000,000
(17,922,980)
(10,439,858)
145,300,624
Options exercisable at end of year
138,729,195
145,300,624
Artemis Resources Limited Annual Financial Report 2022
89
NOTES TO THE FINANCIAL STATEMENTS
25. SHARE BASED PAYMENT (CONTINUED)
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year:
Options – directors
Performance rights – employees and consultants
Consolidated
30 June 2022
$
81,600
30,600
30 June 2021
$
1,401,000
-
112,200
1,401,000
26. RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO LOSS
AFTER INCOME TAX
Loss after income tax
Depreciation and amortisation
Exploration and project expenditure written off
Share based payments
Profit on sale of exploration assets
Fair value loss/(gain) on financial assets
Unrealised foreign exchange gain
Changes in current assets and liabilities during the
financial period:
Decrease/(increase) in receivables
Increase in trade and other payables
Net cash outflow from operating activities
Consolidated
30 June 2022
$
(7,529,345)
97,988
4,696,301
112,200
(1,734,962)
165,883
-
30 June 2021
$
(10,483,611)
115,742
7,113,105
1,401,000
(9,946)
(708,289)
409
26,844
300,269
(3,864,822)
(139,407)
776,404
(1,934,593)
Artemis Resources Limited Annual Financial Report 2022
90
NOTES TO THE FINANCIAL STATEMENTS
27. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
FY2022
Opening balance
Non-cash new lease
Cash repayment
Closing balance
FY2021
Opening balance
Cash repayment
Closing balance
Lease liability
$
-
166,571
(13,120)
153,451
Lease liability
$
40,824
(40,824)
-
Short term
loan
$
116,671
(116,671)
-
Artemis Resources Limited Annual Financial Report 2022
91
NOTES TO THE FINANCIAL STATEMENTS
28. PARENT ENTITY DISCLOSURE
(a) Financial position
Total current assets
Total Non-Current Assets
Total Assets
Total current liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated Losses
Loss for the year
Other comprehensive income
Total comprehensive loss
(b) Commitments
Exploration commitments
Not later than 12 months
Between 12 months and 5 years
30 June 2022
$
30 June 2021
$
12,371,950
2,558,801
14,930,751
2,632,467
109,311
2,474,778
9,745,340
3,264,949
13,010,289
2,263,539
-
2,263,539
12,188,973
10,746,750
114,927,239
2,725,913
(105,464,179)
12,188,973
(6,978,488)
(6,978,488)
105,855,802
3,376,639
(98,485,691)
10,746,750
(11,559,292)
-
(11,559,292)
-
-
-
-
-
-
Artemis Resources Limited Annual Financial Report 2022
92
NOTES TO THE FINANCIAL STATEMENTS
29. SUBSIDIARIES
Country of
Incorporation
Ownership
%
30 June 2022
30 June 2021
Parent Entity:
Artemis Resources Limited
Subsidiaries:
Fox Radio Hill Pty Limited
Karratha Metals Limited
KML No 2 Pty Limited
Armada Mining Pty Limited
Shearzone Mining Pty Limited¹
Western Metals Pty Limited1
Elysian Resources Pty Limited
Hard Rock Resources Pty Limited
Artemis Graphite Pty Ltd
Artemis Management Services Pty
Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
-
100
100
100
100
-
-
100
100
100
100
-
100
100
100
100
100
80
100
100
100
100
1 Shearzone Mining Pty Ltd, held a 34% interest in tenements M47/232 and M47/93.
Exploration expenditure of $115,091 was written off in the prior year. The Group had no
carrying value in this entity at the date of disposal.
Western Metals Pty Ltd, held an 80% interest is M47/223. Exploration expenditure of $522,047
was written off in the prior year. The Group had no carrying value in this entity at the date
of sale to GreenTech Metals Limited (Note 13).
Consolidated
The parent entity with the Group is Artemis Resources Limited which is the ultimate parent
entity in Australia.
Transactions with subsidiaries
Balances and transactions between the Company and its subsidiaries, which are related
parties of the Company, have been eliminated on consolidation.
30. FINANCIAL INSTRUMENTS
The Directors consider that the carrying amounts of current receivables and current
payables (except for Note 16. Financial liabilities) are a reasonable approximation of their
fair values.
31. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or contingent assets since the last annual reporting
period.
32.EVENTS SUBSEQUENT TO 30 JUNE 2022
Mrs Vivienne Powe was appointed as a non-executive director on 4 July 2022.
Other than as outlined above, there are currently no matters or circumstances that have
arisen since the end of the financial year that have significantly affected or may
significantly affect the operations the Group, the results of those operations, or the state of
affairs of the Group in the future financial years.
Artemis Resources Limited Annual Financial Report 2022
93
DIRECTORS DECLARATION
1. In the opinion of the Directors of Artemis Resources Limited:
a. the accompanying financial statements and notes 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 2022 and of
its performance for the year then ended; and
ii. complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
b. there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
c. the financial statements and notes thereto are in accordance with International
Financial Reporting Standards issued by the International Accounting Standards Board.
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 financial
year ended 30 June 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
Alastair Clayton
Executive Director
30 September 2022
Artemis Resources Limited Annual Financial Report 2022
94
INDEPENDENT AUDITOR’S REPORT
To the Members of Artemis Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Artemis Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2022, 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:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
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. In addition to the matter described in the Material
Uncertainty Related to Going Concern section, we have determined the matters described below
to be the key audit matters to be communicated in our report.
95
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of Development Expenditure
Refer to Note 14
The Group has development expenditure of
$27,420,924 in relation to construction of the Radio
Hill Gold Recovery Circuit Processing Facility for the
Carlow Castle Project, this represents a significant
asset to the Group.
We considered it necessary to assess whether facts
and circumstances existed to suggest that the
carrying amount of the development expenditure
asset may exceed its recoverable amount.
Development expenditure was determined to be a
key audit matter as it is important to the users’
understanding of the financial statements as a whole
and was an area which involved the most audit effort
and communication with
those charged with
governance.
Our procedures included but were not
limited to the following:
- We obtained an understanding of the
key
associated with
management’s review of the carrying
value;
processes
- We
considered
Directors’
assessment of potential indicators of
impairment;
the
- We conducted our own assessment of
potential indicators of impairment;
- We
enquired with management,
reviewed ASX announcements and
reviewed minutes of Directors’ meetings;
and
- We assessed the appropriateness of
the disclosures included in the financial
report.
Capitalised Exploration and Evaluation Expenditure
Refer to Note 13
In accordance with AASB 6 Exploration for and
the Group
Evaluation of Mineral Resources,
capitalises exploration and evaluation expenditure
and as at 30 June 2022 had a deferred exploration
and evaluation expenditure balance of $27,323,626.
the users’ understanding of
Exploration and evaluation expenditure was
determined to be a key audit matter as it is important
to
financial
statements as a whole and was an area which
involved the most audit effort and communication
with those charged with governance.
the
Our procedures included but were not
limited to:
- Obtained an understanding of the key
processes
with
management’s review of the carrying
value of exploration and evaluation
expenditure;
associated
- Considered the Directors’ assessment of
potential indicators of impairment in
addition to making our own assessment;
- Obtained evidence that the Group has
current rights to tenure of its areas of
interest;
- Considered the nature and extent of
planned ongoing activities;
- Substantiated a sample of expenditure
supporting
to
by
documentation; and
agreeing
- Examined the disclosures made in the
annual report.
Information Other than the Financial Report and Auditor’s Report Thereon
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 2022, 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.
96
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
− Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
− Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
− Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
− Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
97
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Artemis Resources Limited for the year ended 30 June
2022 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.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 September 2022
B G McVeigh
Partner
98
ADDITIONAL INFORMATION
Australian Securities Exchange
Additional information required by the Australian Securities Exchange Limited Listing Rules and
not disclosed elsewhere in this report. The information was prepared based on share registry
processed up to 16 September 2022.
Distribution of shareholders
The distribution of shareholdings as at 16 September 2022 was:
Holdings Range Report
Artemis Resources Limited
Security Class:
As at Date:
ARV - ORDINARY FULLY PAID
SHARES
16-Sep-2022
Holding Ranges
above 0 up to and including 1,000
above 1,000 up to and including
5,000
above 5,000 up to and including
10,000
above 10,000 up to and including
100,000
above 100,000
Totals
Holders
218
642
640
1,769
753
4,022
Total Units
54,658
2,032,689
5,159,795
69,783,943
1,311,299,899
1,388,330,984
% Issued Share
Capital
0.00%
0.15%
0.37%
5.03%
94.45%
100.00%
Substantial shareholders
The names of the substantial shareholders in the Company, the number of equity securities to
which each substantial holder’s associates have a relevant interest, as disclosed in substantial
holding notices given to the Company are:
Holders Name
No of shares
% of Issued Capital
Jupiter Investment Management Limited
91,744,955
7.31%
Artemis Resources Limited Annual Financial Report 2022
99
ADDITIONAL INFORMATION
Australian Securities Exchange
Top twenty (20) largest holders ordinary share
ARV - ORDINARY FULLY PAID SHARES
Security
class:
As at date: 16-Sep-2022
Display
top:
20
Position
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Holder Name
CITICORP NOMINEES PTY LIMITED
COMPUTERSHARE CLEARING PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
BENNELONG RESOURCE CAPITAL PTY LTD
BATTLE MOUNTAIN PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
CYGNUS 1 NOMINEES PTY LTD
SORRENTO RESOURCES PTY LTD
GUN CAPITAL MANAGEMENT PTY LTD
DEUTSCHE BALATON AKTIENGESELLSCHAFT
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
INKESE PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MR MARK ANTHONY LEE
NATIONAL NOMINEES LIMITED
MR RONALD WERNER NEUGEBAUER &
MISS TESS CAITLIN NEUGEBAUER
BRIAR PLACE PTY LIMITED
MR KARL LUDWIG ANTHONY HAMANN &
MRS LISA JANE HAMANN
MR NEIL THACKER MACLACHLAN
Total
Holding
276,557,968
147,985,391
% IC
19.92%
10.66%
94,620,558
62,879,955
56,316,758
52,042,397
32,617,101
32,195,807
16,100,000
13,400,000
12,500,000
12,376,032
12,000,000
11,307,520
10,559,797
10,234,025
10,000,000
9,700,000
8,220,318
7,500,000
889,113,627
6.82%
4.53%
4.06%
3.75%
2.35%
2.32%
1.16%
0.97%
0.90%
0.89%
0.86%
0.81%
0.76%
0.74%
0.72%
0.70%
0.59%
0.54%
64.04%
100.00%
Total issued capital - selected security class(es)
1,388,330,984
Artemis Resources Limited Annual Financial Report 2022
100
ADDITIONAL INFORMATION
Australian Securities Exchange
Unquoted securities
ASX security code and description
43,500,000
1,000,000
7,500,000
5,000,000
5,000,000
2,000,000
25,000,000
Total number of +securities on
issue
.Class B Unlisted Director Options
exercisable at 7 cents a share
and expiry date 31 July 2023
Unlisted options exercisable at 4
cents per share before 1 May
2023.
Class B Unlisted Advisor Options
exercisable at 7 cents a share
and expiry date 31 July 2023
Class E Director Options
exercisable at 18 cents a share
and expiry date 1 December
2023
Class F Director Options
exercisable at 25 cents a share
and expiry date 1 December
2025
Class G Options exercisable at 15
cents and expiry 20 December
2024
Director options exercisable at 5
cents with expiry 31 July 2025.
The Company had 1,568 unmarketable parcels as at 16 September 2022.
Artemis Resources Limited Annual Financial Report 2022
101