AuKing Mining Limited
ABN 29 070 859 522
ASX Code: AKN
ANNUAL FINANCIAL REPORT
For the year ended 31 December 2023
AuKing Mining Limited
2023 Annual Report
Corporate Directory
AuKing Mining Limited
Board of Directors
Mr Asimwe Kabunga (Executive Chair)
Mr Peter Tighe (Non-Executive Director)
Mr Shizhou Yin (Non-Executive Director)
Mr Park Wei (Non-Executive Director)
Chief Executive Officer
Mr Paul Williams
Company Secretary
Mr Paul Marshall
Head Office and Registered Office
Suite 2208, Level 22
127 Creek Street
Brisbane QLD 4000
Telephone: 07 3535 1208
Email: admin@aukingmining.com
Website: www.aukingmining.com
Auditors
BDO Audit Pty Ltd
Level 10, 12 Creek Street
Brisbane QLD 4000
Telephone: 07 3237 5999
Website: www.bdo.com.au
Share Registry
Link Market Services Limited
Level 21
10 Eagle Street
Brisbane QLD 4000
Telephone: 1300 554 474
Facsimile: 02 9287 0303
Website: www.linkmarketservices.com.au
Stock Exchange Listing
Australian Securities Exchange
ASX Code: AKN
Australian Business Number
29 070 859 522
Page 2
AuKing Mining Limited
2023 Annual Report
CONTENTS
Directors’ Report
Review of Operations
Directors and Officers
Financial Results
Future Developments, Prospects, Strategies and Business Risks
Remuneration Report
Auditor's Independence Declaration
Additional Stock Exchange Information
Annual Financial Report
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
4
14
16
18
20
29
30
32
33
34
35
36
55
59
Page 3
AuKing Mining Limited
2023 Annual Report
REVIEW OF OPERATIONS
Koongie Park Project
Western Australia, Australia
Ownership 100% (subject to 1% net smelter royalty)
Total JORC Resources: Sandiego/Onedin - 8.9 million tonnes @ 1.01% Cu, 3.67% Zn, 0.16g/t Au, 32g/t Ag, 0.77% Pb
and Emull -12.2 million tonnes @ 0.27% Cu, 0.38% Zn, 0.09% Pb and 4.9g/t Ag
Sandiego Scoping Study
On 1 June 2023 AuKing announced the results of a Scoping Study designed to assess the development of an open-pit
and underground mining operation at the Sandiego deposit. The Scoping Study confirmed the potential for a financially
robust, globally competitive copper/zinc project in north-east Western Australia, including nearby deposits owned by
Cazaly Resources Ltd (ASX:CAZ). Mineralisation is proposed to be sourced from four open pit mines (Sandiego, Mt
Angelo North, Onedin and a later-staged operation at the low-grade Bommie) and an underground mine at Sandiego –
all to be processed from a central facility at Sandiego.
Figure 1. Location of Koongie Park Scoping Study deposits
Features of the Study outcomes included:
•
Life-of-Mine (LOM) of 11 years with an estimated total production of 110kt Cu, 38kt Zn and 355koz Ag
• Processing nameplate capacity is 750ktpa of run-of-mine (ROM) ore
• Strong project economics and financial returns including:
o Pre-production Capex of A$134M, with an estimated 2.45 years payback period
o Robust pre-tax NPV8 of approximately A$176.9M and 39.7% IRR
o Life of Mine EBITDA of A$443.8M with an average operating cashflow of A$40.3M per annum.
Page 4
AuKing Mining Limited
2023 Annual Report
Further Acquisition of Joint Venture Interests
Under the terms of the Earn-in and Joint Venture Agreement dated 8 February 2021, upon the participating interest of
Astral Resources (AAR) in the Koongie Park Joint Venture diluting below 10%, AAR is deemed to have withdrawn from
the KPJV and the remaining participating interest converts to a net smelter return royalty. As a result of further sole
funding of project expenditure by AuKing during the year, AAR’s participating interest was deemed to have diluted below
10% with effect from 30 June 2023 and AuKing moved to the 100% participating interest at the same time.
AAR retains the right to explore for and develop gold and other precious metals within the Koongie Park project area,
including platinum group elements. These rights do not apply to the mining licences on which the Onedin and Sandiego
deposits are situated.
Sandiego North Soil Sampling
Early in 2023, the Company completed a soil sampling program over the Sandiego North area to follow up on
mineralisation identified in and around the waterbore drill hole (ASWB001) which is situated 700m north of the Sandiego
deposit. The purpose of the soil program was to identify any geochemical continuity between Sandiego and Sandiego
North.
Figure 2 below shows the sample locations that were targeting the area between the main Sandiego deposit and
Sandiego North – with the Sandiego mining study including a possible open pit mine, the ability to identify further open-
pittable resources at Sandiego North becomes quite significant. From the assay results received during the year (and as
illustrated in Figure 2) there is a clear Cu geochemical trend from ASWB001 back towards the main Sandiego deposit to
the south-west.
Samples were taken on a nominal 50m x 20m spacing for a total of approx. 330 samples in total. The results from this
program clearly demonstrate the need for several drill holes to test the extent of potential copper mineralisation across
this very prospective zone.
Figure 2 – AuKing’s Sandiego North soil sampling area
Page 5
AuKing Mining Limited
2023 Annual Report
Onedin Metallurgical Testwork
A proposal to carry out a pre-feasibility study to establish a suitable metallurgical testwork program at Onedin was
received during the year, but further work on such a program was deferred pending availability of additional funding
sources for such activity.
Tanzania
Ownership
Uranium and Copper projects
100%
In January 2023, AuKing announced completion of the acquisition of its 100% interest in six projects in Tanzania (Ref
ASX Release 31 January 2023).
Four of the projects are prospective for uranium (Manyoni, Mkuju, Itigi and Magaga) and the other two are prospective
for copper (Mpanda and Karema). Mkuju is the priority focus of exploration activities in Tanzania.
Figure 3 - Locations of Tanzanian uranium and copper projects
Mkuju Exploration Program
On 30 August 2023 AuKing announced that exploration activities had commenced at the high priority Mkuju uranium
project in southern Tanzania.
Mkuju is situated immediately to the south-east of the world class Nyota uranium project that was the primary focus of
exploration and development feasibility studies by then ASX-listed Mantra Resources Limited (MRU). Not long after
completion of feasibility studies for Nyota in early 2011, MRU announced a A$1.16Bn takeover offer from the Russian
group ARMZ. The takeover was finalised in mid-2011.
MRU completed a high-resolution helicopter-borne radiometric survey over the entire Mkuju River Project area in mid-
2007 which resulted in the identification of several uranium anomalies requiring field evaluation. Geological mapping,
ground radiometrics and trenching were completed on various target areas. Although preliminary in nature, the field
observations were positive with visible uranium mineralisation being recorded in trenches at a number of the targets.
The historical MRU mapping identified sub-horizontal beds of medium to coarse grained sandstones, interbedded,
multiple layers of claystone and a distinctive stratigraphic marker horizon consisting of petrified wood fragments and tree
trunks. The mapping confirmed the radiometric anomalism to be associated with two linear structural corridors and
associated, second order north-west orientated jointing and faulting. Secondary uranium mineralisation is associated with
the claystone and wood bearing gritstone horizons, with enrichment along the preferred structural zones. The location of
the potential ‘remobilised’ uranium and testing of high-grade zones will be the focus of AuKing’s drilling activities.
Page 6
AuKing Mining Limited
2023 Annual Report
Soil and rock chip sampling at Mkuju
A detailed summary of results achieved from the Stage 1 soil sampling and rock chip exploration program at Mkuju is
set out in ASX Releases dated 16 October and 20 November 2023 respectively) and include the following highlights:
• A total of 66 sample results included pXRF results of:
499ppm U3O8 from rock chip sample MKGS001
481ppm U3O8 from rock chip sample MKGS006
6,213ppm U3O8 from rock chip sample MKGS021
652ppm U3O8 from rock chip sample MKGS056
1,344ppm U3O8 from rock chip sample MKGS056
549ppm U3O8 from rock chip sample MKGS057
• As illustrated below, the results from this program demonstrate a close correlation with the radiometric survey
undertaken by Mantra Resources Limited in 2007 – thereby leaving open a significant prospective area for
future drilling activities.
Figure 4 – Mkuju Soil and Rock Chip Sample Locations and Results
Page 7
AuKing Mining Limited
2023 Annual Report
Auger drilling at Mkuju
A summary of the auger drilling results achieved from the Stage 1 exploration program at Mkuju are highlighted below
and also set out in full in Annexure A of ASX release dated 29 December 2023:
Hole ID
MKAU23_011
MKAU23_014
MKAU23_018
MKAU23_020
Incl.
MKAU23_035
MKAU23_042
MKAU23_045
Incl.
From (m)
10
0
2
0
0
7
6
0
0
To (m)
11
1
6
4
1
9
7
2
1
Width
1
1
4
4
1
2
1
2
1
Grade (U ppm)
38
159
48
598
1896
110
51
169
283
Table 1 – Mkuju highlighted auger drilling results
A number of observations need to be made in relation to the auger drilling program:
•
•
•
•
•
•
Overall, the auger drilling program comprised 55 holes for a total of 547m drilled, with the deepest hole being
18m and an average hole depth of 10m;
AuKing’s planned drilling for the auger rig was to achieve depths of 30m per hole and that based on historical
drilling in the area (including at Nyota), uranium mineralization was expected to be observed if these drilling
depths were achieved;
However, as noted previously, the auger drilling rig has experienced several mechanical faults and other
problems since arriving to site in August 2023 and these issues have prevented the 30m target depth being
achieved for any drill hole;
AuKing’s exploration team believes this is the major reason why most of the auger holes did not identify uranium
mineralisation – the holes were simply not deep enough;
the auger rig has now been removed from site and is undergoing a major overhaul in Dar es Salaam. Whether it
returns to the Mkuju site will be a matter for AuKing to consider as it would appear to make more sense for
future drilling to be undertaken by way of air core/RC drilling rig; and
Despite the ongoing mechanical problems, AuKing has still been able (in some of the drill holes) to identify
significant uranium mineralization, including over to the eastern part of the Mkuju licence area. As has been the
case with the reported rock chip and soil sample results, these auger drill results provide further correlation with
the historical radiometric survey. More importantly, the results provide a strong basis for the next stage of
proposed drilling at Mkuju which is planned for the first half of 2024, as soon as access is permissible after the
wet season has concluded.
Diamond drilling at Mkuju
AuKing sought to mobilise the track-mounted diamond drilling rig in early November 2023 in an attempt to carry out a few
quick drill holes to a depth of approximately 100m in order to test uranium mineralisation at certain priority target holes.
Unfortunately, the rig arrived at site in mid-November and then had several days tramming (on its own tracks) to the first
drill hole location. Mechanical breakdowns then occurred over the next few weeks with the rig and then final set-up delays
meant that drilling did not commence on the first proposed hole until the week before Christmas. A total of 52m of diamond
drilling was completed before the crew departed site for the Christmas/New Year vacation period. Rainfall has continued
over this period and the prospect of further diamond drilling at this time is very unlikely.
The delays experienced with the diamond rig were frustrating and unfortunate and point to a greater likelihood that a
track-mounted air core/RC drilling rig will be utilized for the planned future drilling at Mkuju.
Initial Itigi Drilling Program
Between May and July 2023 AuKing completed a total of 1,060.5m of air core (AC) drilling at the Itigi project (to the west
of Manyoni in central Tanzania). This drilling was completed across 72 holes, to depths up to 15m where bedrock was
encountered.
Assay results received by AuKing’s exploration team were largely consistent with the initial XRF field measurements of
the drilling samples. Although there were anomalous U3O8 readings across several drill holes (including up to a maximum
reading of 304ppm U3O8), AuKing’s drilling at Itigi was unable to replicate the historically-reported results in this area. As
a consequence (and largely due to the expanded focus on Mkuju to the south) it is likely that AuKing will abandon it
licence holdings at Itigi.
Page 8
AuKing Mining Limited
2023 Annual Report
Revocation of Manyoni Licences
On 27 February 2023 AuKing advised of a decision by the Tanzanian Mining Commission to revoke two of the Company’s
PL holdings at Manyoni – PLs 12193 and 12194. As a result of this decision AuKing filed an appeal to the Tanzanian
Minister of Mining under the relevant provisions of the Mining Act. A response to that appeal is still pending. Throughout
the course of the year AuKing continued to liaise with representatives of the Ministry and also the Mining Commission,
hopeful of a positive outcome from the discussions.
Expansion of Mkuju Area
In November 2023, AuKing secured the grant of three new prospecting licences (PLs) to the east of the existing Mkuju
project areas, covering a highly prospective area of approximately 345 sq kms. As demonstrated in Figure 5 below, all
three PL areas cover radiometric “highs” that appear to be of similar quality to the world class Nyota uranium deposit to
the immediate north-east.
Figure 5 – New Mkuju Licence Areas
Page 9
AuKing Mining Limited
2023 Annual Report
Corporate Activities
Capital Raising
During the March Quarter the Company completed a share placement to certain professional investors of 21,260,000
shares at 10c each to raise $2,126,000 (less issue costs). The 10c issue price represented a 69% premium to the
prevailing share price on ASX. A further 10,630,000 free attaching options exercisable at 20c on or before 30 September
2025 were issued as part of the placement. The issue of these shares and options had previously been approved by
AuKing shareholders at the 16 December 2022 extraordinary general meeting.
In November 2023, the Company completed a share placement to sophisticated and professional investors to raise $1.05
million (before costs) through the issue of 26,250,000 shares at an issue price of $0.04 each (Placement Shares). An
additional series of free-attaching options (Placement Options) was issued with the Placement Shares on a 1:2 basis
exercisable at 10c on or before 31 December 2025. Mr Asimwe Kabunga, the Board Chairman and major shareholder,
agreed to participate in the Placement to the extent of a further $200,000, taking the total funds raised (excluding costs)
to $1.25 million.
Board Changes
During the course of 2023, certain changes occurred to the AuKing Board of Directors as follows:
• Ms Anna Nahajski-Staples retired as a director and co-Chairman in early April;
• Mr Ian Hodkinson retired as a director in early April; and
• Mr Zuliang (Park) Wei was appointed as an additional director in early June.
Lapse of AKNO Options
On 30 June 2023, the existing ASX-listed AKNO options lapsed without any of them being exercised. There was a total
of 42,871,380 of these AKNO options.
Competent Persons’ Statements
The information relating to Exploration Results as outlined above is extracted from previous ASX announcements made
by the Company. These reports are available to view on the Company’s website www.aukingmining.com. This report was
issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcement. The Company confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the original market
announcements.
Annual Mineral Resource Statement
In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources at least annually. The
date of reporting is 31 December 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.
The Company has not reported any changes to its Mineral Resources during the 2023 calendar year. The current reported
JORC 2012 resource estimate for the Koongie Park project (Sandiego and Onedin) is 8.9Mt @ 1.01% Cu, 3.67% Zn,
0.16g/t Au, 32g/t Ag and 0.77% Pb, details of which are set out below:
Page 10
AuKing Mining Limited
2023 Annual Report
Onedin Mineral Resource Estimate and Metal Tonnes
Zone
Classification
Cu
Dominant
Zn
Dominant
Indicated
Inferred
Indicated
Inferred
Resource Total and Grades
Zone
Classification
Cu
Dominant
Zn
Dominant
Indicated
Inferred
Indicated
Inferred
Tonnes
(Mt)
1.5
-
3.3
-
4.8
Tonnes
(Mt)
1.5
-
3.3
Copper
(%)
1.1
-
0.5
-
0.7
Copper
(tonnes)
16,500
-
16,500
Zinc (%)
0.6
-
4.3
-
3.2
Zinc
(tonnes)
9,000
-
141,900
-
-
-
Gold
(g/t)
0.2
-
0.1
-
0.1
Gold
(oz)
9,600
-
10,600
-
Total Metal Tonnes
33,000
150,900
20,200
Silver
(g/t)
47
-
34
-
38
Silver
(Moz)
2.27
-
3.61
-
5.88
Lead (%)
1.2
-
1.0
-
1.1
Lead (tonnes)
18,000
-
33,000
-
51,000
Note:
(1) Reported tonnes and grade are rounded
(2) Reporting cut-off grades of 0.4% Cu and 1% Zn have been applied to the Onedin deposit
Sandiego Mineral Resource Estimate and Metal Tonnes
Cu
Dominant
Zn
Dominant
Classification
Indicated
Inferred
Sub Total
Indicated
Inferred
Sub Total
Resource Total and Grades
Classification
Cu
Dominant
Zn
Dominant
Indicated
Inferred
Sub Total
Indicated
Inferred
Sub Total
Total Metal Tonnes
Tonnes
(Mt)
1.7
0.3
2.0
2.0
0.1
2.1
4.1
Tonnes
(Mt)
1.7
0.3
2.0
2.0
0.1
2.1
Copper
(%)
2.3
1.6
2.2
0.6
0.2
0.6
1.4
Copper
(tonnes)
39,100
4,800
43,900
12,000
Zinc (%)
0.8
3.0
1.1
7.3
6.1
7.3
4.3
Zinc
(tonnes)
13,600
9,000
22,600
146,000
200
6,100
12,200
56,100
152,100
174,700
Gold
(g/t)
0.3
0.2
0.3
0.1
0.1
0.1
0.2
Gold
(oz)
16,400
1,900
18,300
6,400
300
6,700
25,000
Silver
(g/t)
18
5
16
35
10
34
25
Silver
(Moz)
0.98
0.05
1.03
2.25
0.03
2.28
3.31
Lead (%)
0.2
0.0
0.1
0.7
0.1
0.7
0.4
Lead (tonnes)
3,400
0
3,400
14,000
100
14,100
17,500
Note:
(1) Reported tonnes and grade are rounded
(2) Reporting cut-off grades of 0.8% Cu and 3% Zn have been applied to the Sandiego deposit
The information in this report that relates to Mineral Resources at the Koongie Park Project (Sandiego and Onedin) is
based on information compiled by Mr David Williams who is a member of the Australian Institute of Geoscientists. Mr
Williams is a Principal Consultant Geologist (Brisbane) of CSA Global and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify
as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves.’ Mr Williams consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The current reported JORC 2012 resource estimate for the Koongie Park project (Emull) is 12.2Mt @ 0.27% Cu, 0.38%
Zn, 0.09% Pb, and 4.9g/t Ag, details of which are set out below:
Page 11
AuKing Mining Limited
2023 Annual Report
Emull Mineral Resource Estimate and Metal Tonnes
December 2022 Mineral Resource Estimate (0.15% Cu Cut-off)
Tonnage
Mt
0.26
0.34
1.8
2.4
Tonnage
Mt
0.04
0.05
9.7
9.8
Tonnage
Mt
0.29
0.39
11.5
12.2
Indicated Mineral Resource
Pb
%
0.16
0.17
0.14
0.14
Ag
g/t
5.4
7.0
6.6
6.6
Cu
t
700
1,000
5,600
7,300
Inferred Mineral Resource
Pb
%
0.05
0.04
0.08
0.08
Ag
g/t
3.1
3.4
4.6
4.5
Cu
t
100
100
25,200
25,400
Total Mineral Resource
Pb
%
0.14
0.15
0.09
0.09
Ag
g/t
5.2
6.6
4.9
4.9
Cu
t
800
1,100
30,800
32,700
Zn
t
1,800
2,300
10,400
14,500
Zn
t
100
100
32,300
32,500
Zn
t
1,900
2,400
42,700
47,000
Zn
%
0.72
0.68
0.57
0.60
Zn
%
0.23
0.18
0.33
0.33
Zn
%
0.66
0.61
0.37
0.38
Cu
%
0.28
0.29
0.31
0.30
Cu
%
0.24
0.25
0.26
0.26
Cu
%
0.28
0.28
0.27
0.27
Pb
t
400
600
2,400
3,400
Pb
t
7,400
7,400
Pb
t
400
600
9,800
10,800
Ag
koz
50
80
390
510
Ag
koz
10
1,420
1,430
Ag
koz
50
80
1,810
1,940
Type
Oxide
Transitional
Fresh
Total
Type
Oxide
Transitional
Fresh
Total
Type
Oxide
Transitional
Fresh
Total
The information in this Report that relates to the Mineral Resource Estimate for Emull is based on information compiled
by Mr Shaun Searle who is a Member of the Australasian Institute of Geoscientists. Mr Searle is an employee of Ashmore
Advisory Pty Ltd and independent consultant to AuKing Mining Limited. Mr Searle has sufficient experience, which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken
to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Searle consents to the inclusion in this report of the matters based
on this information in the form and context in which it appears.
In completing the review for the period ended 31 December 2023, the historical resource factors were reviewed and found
to be relevant and current. The Koongie Park project has not been converted to an active operation yet and hence no
material resource depletion has occurred for the review period.
Material Changes and Resource Statement Comparison
The 2012 JORC resource at Koongie Park (Sandiego and Onedin) and the maiden Emull resource (as shown above) are
the current versions of the Mineral Resource estimates. The information in this Annual Report that relates to Mineral
Resources was prepared and first disclosed under the JORC Code 2012 Edition. The Company is not aware of any new
information or data that materially affects the information as previously released and all material assumptions and
technical parameters underpinning the estimates continue to apply and have not materially changed.
Governance Arrangements and Internal Controls
AuKing has ensured that the Mineral Resources quoted are subject to good governance arrangements and internal
controls. The Mineral Resources reported have been generated by suitably qualified personnel who are experienced in
best practices in modelling and estimation methods, and AuKing has also undertaken reviews of the quality and suitability
of the underlying information used to determine the resource estimate.
Page 12
AuKing Mining Limited
2023 Annual Report
Annual Review Competent Persons Statement
The information in this Annual Report that relates to the mineral resources and ore reserves statement as a whole has
been reviewed and approved by Mr Chris Bittar who is a member of the Australasian Institute of Mining and Metallurgy.
Mr Bittar is an employee of AuKing Mining Limited and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.’ Mr Bittar consents to the inclusion in this Report of the matters based on his information
in the form and context in which it appears.
Page 13
AuKing Mining Limited
2023 Annual Report
DIRECTORS AND OFFICERS
The following persons were directors of AuKing Mining Limited (‘AKN’ or ‘the Company’) during the whole of the financial
period and up to the date of this report, unless stated:
Current Directors
Mr Asimwe Kabunga
Executive Co-Chair, BSc (Mathematics and Physics)
(Appointed 19 October 2022)
Asimwe Kabunga is a Tanzanian born Australian entrepreneur with multiple interests in mining and IT businesses around
the world.
Mr Kabunga has extensive experience in the mining industry, logistics, land access, tenure negotiation and acquisition,
as well as a developer of technology businesses. Mr Kabunga has been instrumental in establishing the Tanzania
Community of Western Australia Inc., and served as its first President. Mr Kabunga was also a founding member of Rafiki
Surgical Missions and Safina Foundation, both NGOs dedicated to helping children in Tanzania.
Mr Kabunga has been a director of the following ASX listed companies in the prior 3 years:
Lindian Resources Limited (appointed June 2017)
Resource Mining Corporation (appointed May 2022)
Volt Resources Limited (appointed August 2017)
Mr Peter Tighe (Appointed 9 June 2021)
Non-Executive Director
Mr Tighe started his working career in the family-owned JH Leavy & Co business, which is one of the longest established
fruit and vegetable wholesaling businesses in the Brisbane Markets at Rocklea and has been trading since the late 1800s.
As the owner and managing director of JH Leavy & Co, Mr Tighe expanded the company along with highly respected
farms and packhouses that have been pleased to supply the company with top quality fruit and vegetables for
wholesale/export for over 40 years. JH Leavy & Co is considered one of the most successful businesses operating within
the Brisbane Markets.
Mr Tighe has been a director of Brisbane Markets Limited (BML) since 1999. BML is the owner of the Brisbane Markets®
site and is responsible for its ongoing management and development of its $350m asset portfolio. As the proprietor of the
site, BML has over 250 leases in place including selling floors, industrial warehousing, retail stores and commercial
offices. BML acknowledges its role as an economic hub of Queensland, facilitating the trade of $1.5 billion worth of fresh
produce annually, supporting local and regional businesses of the horticulture industry. As a Board member Mr Tighe
has held roles in various sub-committees which include Chairman of Safety and Tenant Advisory Committee, BML
Strategy Investment Committee, and Legal and Compliance Committee.
In 2016 the JH Leavy & Co business was sold but Mr Tighe has continued as the CEO of Global Fresh Australia, trading
as JH Leavy & Co, to ensure a successful transition of ownership.
He has not been a Director of any other Australian listed company in the last three years.
Mr ShiZhou Yin (Appointed 9 June 2021)
Non-Executive Director
Mr. Yin is a Chinese national without any foreign permanent residence, holds a Master of Professional Accounting degree
and is a Chinese Certified Public Accountant and a Senior Accountant. From September 1994 to September 2010, Mr.
Yin served successively as Accountant of Beijing No. 2 Water Pipe Factory, Audit Manager and Audit Partner of Yuehua
Certified Public Accountants Firm, and Senior Partner of Zhongrui Yuehua Certified Public Accountants Co., Ltd. From
October 2010 to May 2011, Mr Yin served as Chief Financial Officer of JCHX Mining Management Co., Ltd. From May
2011 to April 2017, Mr Yin served as Chief Financial Officer and Secretary of the Board of Directors of JCHX Mining
Management Co., LTD (Shanghai Stock Exchange Code: 603979).
From April 2017 Mr Yin has been Vice President, Chief Financial Officer and Secretary of the Board of JCHX Group Co.,
Ltd. Mr. Yin has been the chairman of the Board of Supervisors of JCHX Mining Management Co., Ltd (Shanghai Stock
Exchange Code: 603979) since May 2017.
Mr Yin has been an Independent Director of:
Page 14
AuKing Mining Limited
2023 Annual Report
Beijing Century Real Technology Co.,Ltd. (Shenzhen Stock Exchange Code: 300150) since September 2018;
Beijing Yiqiao Shenzhou Technology Co., LTD. (which is to be listed on Growth Enterprise Market (“GEM”) of
Shenzhen Stock Exchange) since March 2020; and
previously, from October 2009 to March 2015, Dalian East New Energy Development Co., Ltd. (Shenzhen Stock
Exchange Code: 300125).
He has not been a Director of any other Australian listed company in the last three years.
Mr Park (Zuliang) Wei (Appointed 5 June 2023)
Non-Executive Director, BA
Park Wei is a Chinese born Australian entrepreneur with multiple interests in property, mining and finance businesses
around the world.
Mr Wei is currently the Chairman of a fund manager, PAN Australia Fund Management Pty Ltd (PAFM) and the founder
of Top Pacific Group, which was established in 1994 and diversified into property development, construction, real estate
sales, building and strata management. He developed extensive residential property projects with total turnover of more
than $3 billion.
In 2019, Mr Wei took over PAFM (formerly Boill Fund Management Pty Ltd, a wholesale fund manager) to be main
shareholder and Managing Director. Mr Wei has successfully invested in a number of equity investment projects in China
and Australia, achieving good returns. Mr Wei also helped JAT fundraise $15 million to acquire the Australian dairy
company ANMA.
He has not been a Director of any other Australian listed company in the last three years.
Interests in the shares and options of the Company
As at the date of this report, the interests of the Directors in the shares and options of AuKing Mining Limited are shown
in the table below:
Director
Ordinary
Shares
Options
Asimwe Kabunga
41,000,000
20,500,000
Peter Tighe
ShiZhou Yin *
Park Wei
2,816,889
9,425,092
9,000,000
500,000
500,000
2,000,000
* Shares are held by Bienitial International Industrial Co Ltd. Mr Yin has the capacity to control the voting of the shares held by Bienitial International Industrial
Co Ltd.
Former Directors
Ms Anna Nahajski-Staples (Resigned 6 April 2023)
Non-Executive Co-Chair, BA Bus, F Fin, ACIS, GAICD
Ms Nahajski-Staples is an investment banker, public company director and manager, with nearly 30 years’ experience
(15 years in mining) representing over half a billion dollars in global transactions.
Mr Ian Hodkinson (Resigned 6 April 2023)
Non-Executive Director
Mr Hodkinson is a Registered Professional Geoscientist (RPGeo) in the fields of Mining and Mineral Exploration with over
40 years of experience in exploration, metalliferous mining and project development, in both Africa and Australia. Mr
Hodkinson has a bachelor’s degree in Geology and Geography from the University of London and a Master of Science
in Mineral Exploration and Mining Geology from the University of Leicester in the UK. He is a long-standing member of
the Australian Institute of Geoscientists (AIG) and the Society for Geology Applied to Mineral Deposits (SGA).
Page 15
AuKing Mining Limited
2023 Annual Report
COMPANY SECRETARY
Mr Paul Marshall was the Secretary of AuKing Mining Limited throughout the period and until the date of this report.
Paul Marshall
Company Secretary and Chief Financial Officer, LLB, ACA
Paul Marshall is a Chartered Accountant. He holds a Bachelor of Law degree, and a post Graduate Diploma in Accounting
and Finance. He has 30 years professional experience having worked for Ernst and Young for ten years, and
subsequently twenty years spent in commercial roles as Company Secretary and CFO for a number of listed and unlisted
companies mainly in the resources sector. He has extensive experience in all aspects of company financial reporting,
corporate regulatory and governance areas, business acquisition and disposal due diligence, capital raising and company
listings and company secretarial responsibilities.
PRINCIPAL ACTIVITIES
The principal activity of the Company and its controlled entities (‘Consolidated Entity’) during the period was mineral
exploration. There were no significant changes in the nature of the Consolidated Entity’s principal activity during the
period.
DIVIDENDS PAID OR RECOMMENDED
There were no dividends paid or recommended during the period (2022: $nil).
FINANCIAL RESULTS
Capital structure
Shares and Options on issue at 31 December 2023
At 31 December 2023 the Company had 230,353,707 ordinary shares and 83,325,000 options on issue.
Shares and Options issued after year end
On 14 February 2024, following shareholder approval, AKN issued 5,000,000 ordinary shares (at $0.04 per share) and
2,500,000 free-attaching options exercisable at 10c on or before 31 December 2025 to an entity associated with Asimwe
Kabunga.
Treasury policy
The Consolidated Entity does not have a formally established treasury function. The Board is responsible for managing
the Consolidated Entity’s currency risks and finance facilities. The Consolidated Entity does not currently undertake
hedging of any kind.
Liquidity, funding and going concern
As at 31 December 2023 the Consolidated Entity had cash reserves of $396,308 and net current assets of $49,942. For
the year ended 31 December 2023 the Consolidated entity incurred a loss of $12,626,360 (including $9,305,708 of
exploration expenditure that was expensed under the Consolidated Entity’s accounting policy disclosed in Note 7),
incurred operating cash outflows of $3,647,914 (including $1,603,478 of exploration expenditure that was expensed under
the Consolidated Entity’s accounting policy disclosed in Note 7) and had investing cash outflows of $509,572. As
disclosed in Note 20 the Consolidated Entity also has obligations to expend minimum amounts on exploration in tenement
areas. Currently the exploration expenditure obligations for the 12 months ending 31 December 2024 to maintain its
current tenement areas are $1,595,339.
Subsequent to year end the Consolidated Entity raised an additional $200,000 through a share placement with a director
after this was approved by shareholders at the 16 January 2024 EGM. On 26 March 2024 the Consolidated Entity also
entered into a short term loan funding agreement with a private investor for $250,000. Under the loan terms the interest
rate is 7% per month and is repayable in 3 months. Additional short term funding arrangements are currently being
finalised by the Consolidated Entity to obtain up to $1,000,000 in funding.
The Consolidated Entity requires further capital to fund future exploration activity and meet other necessary corporate
expenditure.
Page 16
AuKing Mining Limited
2023 Annual Report
The ability of the Consolidated Entity to continue as a going concern is dependent upon securing funding in the form of a
capital raise, loan or other form of financing within the next month. This is in addition to amounts already raised
subsequent to balance date. These funds are required to continue planned exploration and meet the Consolidated Entity’s
working capital requirements.
The Consolidated Entity’s ability to continue as a going concern is also dependent upon one or more of the following:
1.
2.
3.
the ability of the Company to raise additional capital in the future;
the ability of the Consolidated Entity to obtain short term funding within the next month to meet immediate funding
requirements; and
the successful exploration and subsequent exploitation of the Consolidated Entity’s tenements.
These conditions give rise to material uncertainty which may cast significant doubt over the Consolidated Entity’s ability
to continue as a going concern.
Whilst acknowledging these uncertainties, the directors have concluded that the going concern basis of preparation is
appropriate due to the following reasons:
1. As noted above management is in discussions with certain parties to provide funding including discussions to obtain
further short-term funding of up to $1,000,000;
2. Management is considering the issue of a convertible note and/or obtaining loan funding from a Director or third
3.
4.
party;
To date the Consolidated Entity has funded its activities through issuance of equity securities, and it is expected
that the Consolidated Entity will be able to fund its future activities through further issuances of equity securities;
and
The directors believe there is sufficient cash available for the Consolidated Entity to continue operating based on
the Company’s cash flow forecast.
Should the Consolidated Entity be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the
financial statements.
Operating Results
Revenue
As an exploration company, AuKing Mining Limited does not generate any recurring income.
Expenses
The Consolidated Entity’s main expenses compared to the prior period are as follows:
Employment and consultancy expenses
Depreciation expense
Costs related to the Tanzania transaction
Exploration expenditure - Tanzania
Impairment – exploration and evaluation assets
Other expenses
Total expenses during the year
2023
$
1,254,336
47,404
1,039,119
9,305,708
38,332
979,793
12,664,692
2022
$
1,073,750
38,939
89,208
-
-
1,143,326
2,345,223
On 30 January 2023 AKN completed the purchase of various prospective uranium and copper licences in Tanzania. The
purchase price was discharged by AKN through the issue of 60,000,000 ordinary shares and 30,000,000 options
exercisable at $0.20 on or before 30 September 2025. The value of this consideration was $7,702,230. This
consideration, along with additional exploration expenditure conducted in Tanzania during the year ($1,603,478) has
been expensed as incurred, with AKN adopting this accounting policy for areas of interest in environments where there
is heightened sovereignty and other risks compared to Australia.
AKN also incurred transaction costs to acquire the Tanzania licences of $1,039,119 of which $992,410 related to options
and shares issued to Vert Capital, as part consideration for introduction of these project interests to and assistance in
securing the acquisition.
Remaining costs (employment and other expenses) remained consistent with the prior period.
Page 17
AuKing Mining Limited
2023 Annual Report
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the year AKN completed an agreement to acquire of a substantial portfolio or tenures in Tanzania that are
prospective for uranium and copper development opportunities. AuKing acquired all of the issued shares in Australian-
incorporated 92 U Pty Ltd (92 U). 92 U is the legal and beneficial owner of all the shares in two Tanzanian companies –
92 U Tanzania Limited and Monaco Copper Limited. These entities in turn, own various Prospecting Licences (PL) and
PL applications. Consideration for the acquisition was 60,000,000 AKN ordinary shares and 30,000,000 options
exercisable at $0.20 on or before 30 September 2025.
The acquisition was completed on 31 January 2023.
OPTIONS
As at the date of this report there were 85,825,000 options on issue:
Tranche
Expiry Date
Exercise
Price
1 January
2023
Movements
Issued
Exercised
Tranche 1
30 Jun 2023
Tranche 2
30 Jun 2023
Tranche 3
31 May 2025
Tranche 4
31 May 2025
Tranche 5
31 May 2025
Tranche 6
30 Sep 2025
Tranche 7
30 Sep 2025
Tranche 8
30 Sep 2025
Tranche 9
30 Sep 2025
Tranche 10
30 Sep 2025
Tranche 11
30 Sep 2025
Tranche 12
31 Dec 2025
Tranche 13
31 Dec 2025
0.25
0.25
0.17
0.11
0.17
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.10
28,871,380
14,000,000
2,500,000
2,700,000
1,000,000
6,870,000
-
-
-
-
-
-
-
-
-
-
-
-
-
30,000,000
10,000,000
10,630,000
2,000,000
5,000,000
13,125,000
2,500,000
55,491,380
73,255,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Lapsed/
Expired
At Reporting
Date
(28,871,380)
(14,000,000)
-
-
-
-
2,500,000
2,700,000
(500,000)
500,000
-
-
-
-
-
-
-
-
6,870,000
30,000,000
10,000,000
10,630,000
2,000,000
5,000,000
13,125,000
2,500,000
(43,371,380)
83,325,000
Option holders did not have any rights to participate in any issues of shares or other interests of the Company or any
other entity. No person entitled to exercise any option referred to above has or had, by virtue of the option, a right to
participate in any share issue of any other body corporate.
FUTURE DEVELOPMENTS, PROSPECTS, STRATEGIES AND BUSINESS RISKS
AuKing intends to take an aggressive approach towards its exploration and business activities during the course of 2024,
featuring the following:
Koongie Park
Identify suitable funding structures to pursue further drilling and related exploration across the tenure package,
but with an initial focus on the region to the north of the existing Sandiego deposit; and
Establish sufficient funding to proceed with further metallurgical testwork at the Onedin deposit, largely in
accordance with the prefeasibility study program that has already been identified for this activity.
Tanzania
Mkuju – proceed with an extensive Stage 2 drilling program with a view to identifying uranium mineralisation and
the basis for initial mineral resource estimation work;
Manyoni – take all reasonable and necessary steps to re-secure the two licences that were previously revoked by
the Mining Commission and then carry out planned drilling to update the current resource estimate to 2012 JORC
standards and carry out further metallurgical testwork on these resources; and
Page 18
AuKing Mining Limited
2023 Annual Report
Mpanda/Karema – initial site surveying and mapping, soil sampling, review of available historic data, and (where
possible) shallow auger drilling.
In addition, AKN intends continue identifying project opportunities from both within the existing AuKing tenure portfolio
and other new projects as and when they arise.
Material Business Risks
Exploration and Evaluation Risks
The future value of the Company will depend on its ability to find and develop sufficient resources that are economically
recoverable within the Koongie Park and Tanzanian tenure portfolios. Mineral exploration and development is inherently
highly speculative and involves a significant degree of risk. There is no guarantee that economic mineralisation will be
found, and if found, that it will be economic to extract these resources or that there will be commercial opportunities
available to monetise these resources.
The circumstances in which a mineral deposit becomes or remains commercially viable depends on a number of factors.
These include the particular attributes of the deposits, such as size, grade, metallurgy, strip ratios and proximity to
infrastructure as well as external factors such as supply and demand. This, along with other factors such as maintaining
title to tenements and consents, successful design construction, commissioning and operating of projects and processing
facilities may result in projects not being developed, or operations becoming unprofitable.
Furthermore, while the Company has confidence in the future prospects of the tenements, should those tenements not
prove profitable and the Company is unable to secure new exploration areas and resources, there could be a material
adverse effect on the Company’s prospects and its future success.
Tenure Risks
The Company’s future exploration and development activities are dependent upon the grant, or as the case may be, the
maintenance of appropriate licences, concessions, leases, permits and regulatory consents which may be withdrawn or
made subject to limitations. The maintaining of tenements, obtaining renewals, or getting tenements granted, often
depends on AKN being successful in obtaining the required statutory approvals for its proposed activities and that the
licences, concessions, leases, permits or consents it holds will be renewed as and when required.
Even though the Company intends to commit significant exploration expenditure there is risk associated with the
Company’s ongoing ability to retain the portfolio in its current form. Furthermore, no assurance that tenement renewals
will be given as a matter of course and there is no assurance that new conditions will not be imposed in connection with
any renewal.
Access Risks
There are various restrictions operating to exclude, limit or impose conditions upon the Company’s ability to conduct
activities on parts of the tenements that the Company will hold an interest in. These restrictions include:
•
•
•
•
exclusions from pursuing exploration activities on certain areas of Commonwealth land;
requirements arising from Native Title legislation and claims;
requirements arising from state legislation relating to heritage, culture and objects; or
access procedures and compensation requirements in relation to privately held land.
As such, there is a risk one or more of these access issues may prevent or delay the Company from implementing its
intended activities which may thereby adversely affect the Company’s prospects.
ENVIRONMENTAL ISSUES
In the conduct of exploration activities at Koongie Park and in Tanzania, the Company is subject to compliance with
various environmental and traditional owner cultural heritage regulations. The Company is not aware of any
circumstances where a breach of these obligations may have occurred.
On 17 November 2021, the Company announced that it had adopted the World Economic Forum’s “Environment, Social
and Governance” (“ESG”) framework and instructed management to set up an impact measurement plan for each
sustainability area. These areas include governance, anti-corruption practices, ethical behaviour, health and safety, GHG
emissions, land use, ecological sensitivity, water consumption, diversity and inclusion, pay equality and economic
contribution. To ensure that AKN can measure, monitor, and report on its ESG progress, the Company has engaged
impact monitoring technology platform Socialsuite to streamline the outcomes measurement and ongoing ESG reporting
process. These reports will appear quarterly in the Company’s future Quarterly Activities Reports to ASX.
Page 19
AuKing Mining Limited
2023 Annual Report
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for Directors and Key Management Personnel of the Company.
Remuneration Policy
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the Company
must attract, motivate and retain highly skilled Directors and Executives.
Remuneration Committee
The Board does not have a Remuneration and Nomination Committee. The full Board is responsible for determining and
reviewing compensation arrangements for the Directors and the Executive team.
The Board assesses 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.
Such officers are given the opportunity to receive their base emolument in a variety of forms including cash and fringe
benefits. It is intended that the manner of payments chosen will be optimal for the recipient without creating undue cost
for the Company.
Remuneration structure
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and
Executive team by remunerating Directors and other Key Management Personnel fairly and appropriately with reference
to relevant employment market conditions for similar companies.
To assist in achieving this objective, the Board considers the nature and amount of Directors’ and Officers’ emoluments
alongside the Company’s operational performance, specifically considering their success in:
the identification of prospective tenements;
subsequent design and execution of exploration programs;
negotiating joint venture arrangements on terms favourable to the Company;
investigating other potential acquisition opportunities and negotiating the completion of those acquisitions;
expanding the level of mineral resources under the control of the company;
carrying out exploration programs in a timely and cost effective manner; and
liaising with stockbrokers, investment banks and market participants generally.
The expected outcomes of the remuneration structure are the retention and motivation of key Executives, the attraction
of quality management to the Company and performance incentives which allow Executives to share the rewards of the
success of the Company.
In accordance with best practice corporate governance, the structure of Non-Executive Director remuneration and
Executive Officers and Senior Management remuneration is separate and distinct.
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Constitution of AuKing Mining Limited and the ASX Listing Rules specify that the Non-Executive Directors are entitled
to remuneration as determined by the Company in the Annual General Meeting to be apportioned among them in such
manner as the Directors agree and, in default of agreement, equally. The maximum aggregate remuneration currently
approved by shareholders for non-executive Directors’ fees is for a total of $250,000 per annum.
If a Non-Executive Director performs extra services, which in the opinion of the Directors are outside the scope of the
ordinary duties of the Director, the Company may remunerate that Director by payment of a fixed sum determined by the
Directors in addition to or instead of the remuneration referred to above. Non-Executive Directors are entitled to be paid
travel and other expenses properly incurred by them in attending Director's or General Meetings of the Company or
otherwise in connection with the business of the Company.
Executive remuneration
The Company aims to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Company and so as to:
reward Executives for company and individual performance against targets set by reference to appropriate
benchmarks;
align the interests of Executives with those of shareholders;
link reward with the strategic goals and performance of the Company; and
ensure total remuneration is competitive by market standards.
Page 20
AuKing Mining Limited
2023 Annual Report
The remuneration of Executives may from time to time be fixed by the Board. As noted above, the Board’s policy is to
align Executive objectives with shareholder and business objectives by providing a fixed remuneration component and
offering long-term incentives. The level of fixed remuneration is set so as to provide a base level of remuneration which
is both appropriate to the position and is competitive in the market.
Fixed remuneration is reviewed annually by the Board, and the process consists of a review of both the Company’s
operational performance and individual performance, relevant comparative remuneration in the market and where
appropriate, external advice provided by executive remuneration consultants.
In relation to the payment of bonuses, options and other incentive payments, discretion is exercised by the Board, having
regard to the overall performance of the Company and the performance of the individual.
Employment contracts
Non-Executive Co-Chair Arrangements
The Company entered a service arrangement with Ms Anna Nahajski-Staples as Non-Executive Co-Chair of the
Company commencing from 1 October 2022. The key terms of the arrangement during the financial year were:
Ongoing contract – no fixed term;
Fee of $50,000 per annum plus statutory superannuation;
1,000,000 director incentive options exercisable at $0.17 on or before 31 May 2025;
No retirement benefits
Executive Chair Arrangements
The Company entered a service arrangement with Mr Asimwe Kabunga as Executive Chair of the Company commencing
from 19 October 2022. The key terms of the arrangement during the financial year were:
Ongoing contract – no fixed term;
Fee of $240,000 per annum, reduced to $15,000 per month until completion of the Tanzanian transaction;
3 month notice period;
No retirement benefits
Non-Executive Director Arrangements
The Company has entered service arrangements with Mr Peter Tighe, Mr Ian Hodkinson and Mr ShiZhou Yin as Non-
Executive Directors of the Company commencing from 9 June 2021. The service agreement with Mr Park Wei has the
same terms commencing from 5 June 2023. The key terms of the arrangement are:
Ongoing contract – no fixed term;
Fee of $35,000 per annum
No retirement benefits
Non-Executive Director Consulting Arrangement
The Company entered into a consultancy agreement dated 16 February 2021 with Cornubian Resources Pty Ltd, an
entity associated with the Ian Hodkinson. The agreement provides that Cornubian will procure the services of Mr
Hodkinson, on a as-needed basis, in the role of Senior Geological Consultant of the Company.
Chief Executive Officer
The Company entered into an executive services agreement with Paul Williams to serve as Chief Executive Officer of the
Company. Mr Williams’ appointment in the role of Chief Executive Officer commenced on 9 June 2021. The agreement
provides that Mr Williams will be paid an annual remuneration (inclusive of statutory superannuation) of $300,000.
The agreement may be terminated by the Company immediately with cause (e.g. serious misconduct, breach of the
agreement, criminal offence or bankruptcy) and by 6 months’ notice (without cause). Mr Williams may terminate the
agreement by 3 months’ notice in writing.
Page 21
AuKing Mining Limited
2023 Annual Report
Company Secretary and CFO
The Company Secretary and CFO, Mr Paul Marshall, is engaged on an on-going consultancy style agreement for the
provision of services as company secretary and chief financial officer at a rate of $52,000 per annum. Services are
invoiced monthly based on services provided. The contract provides for a three-month notice period.
(a) Details of Directors and other Key Management Personnel
Directors
Asimwe Kabunga
Peter Tighe
ShiZhou Yin
Park Wei
Former Directors
Executive Chair (appointed 19 October 2022)
Non-Executive Director (appointed 9 June 2021)
Non-Executive Director (appointed 9 June 2021)
Non-Executive Director (appointed 5 June 2023)
Anna Nahajski-Staples
Ian Hodkinson
Non-Executive Co-Chair (resigned 6 April 2023)
Non-Executive Director (resigned 6 April 2023)
Key Management Personnel
Paul Williams
Paul Marshall
CEO
Company Secretary and CFO
(b) Remuneration of Directors and other Key Management Personnel
Short Term
Post-Employment
Share-based
Payments
Salary &
Fees
Consulting
Fees
Other
Superan-
nuation
Retirement
benefits
Options
Total
Performance
Related %
% consisting
of equity
December 2023
Directors
A Kabunga
P Tighe
S Yin
P Wei
235,000
35,000
35,000
19,931
Former Directors
A Nahajski-Staples
25,000
I Hodkinson
9,042
Key Management Personnel
P Williams
P Marshall
273,602
52,000
684,866
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,625
-
26,398
-
29,023
-
-
-
-
-
-
-
-
-
-
235,000
12,418
47,418
12,418
47,418
-
19,931
-
26%
26%
-
10,328
37,953
12,418
21,460
27%
58%
13,359
313,359
6,680
58,680
67,621
781,219
4%
11%
-
26%
26%
-
27%
58%
4%
11%
Page 22
AuKing Mining Limited
2023 Annual Report
December 2022
Directors
A Kabunga
36,429
A Nahajski-Staples
12,500
P Tighe
35,000
-
-
-
I Hodkinson
35,000
42,525
S Yin
35,000
Former Directors
M Elliott
50,000
Key Management Personnel
P Williams
P Marshall
273,710
52,000
-
-
-
-
529,639
42,525
Short Term
Post-Employment
Share-based
Payments
Salary &
Fees
Consulting
Fees
Other
Superan-
nuation
Retirement
benefits
Options
Total
Performance
Related %
% consisting
of equity
-
-
-
-
-
-
-
-
-
-
1,313
-
-
-
-
26,290
-
27,603
-
-
-
-
-
-
-
-
-
-
36,429
10,272
24,085
14,682
49,682
14,682
92,207
14,682
49,682
-
43%
30%
16%
30%
-
43%
30%
16%
30%
54,200
104,200
52%
52%
13,581
313,581
6,790
58,790
4%
12%
4%
12%
128,889
728,656
(c) Shares issued on exercise of remuneration options or performance shares
There were no shares issued on the exercise of compensation options or performance shares during the period.
Page 23
AuKing Mining Limited
2023 Annual Report
(d) Director and Key Management Personnel Equity Holdings
Director/Key Management Personnel shareholdings (number of shares)
December 2023
Directors
Asimwe Kabunga1
Peter Tighe
ShiZhou Yin 2
Park Wei
Former Directors
Anna Nahajski-Staples
Ian Hodkinson
Key Management Personnel
Paul Williams
Paul Marshall
Opening
Balance
Recognised on
Appointment
Purchased
Tanzania
Acquisition
Sold
Derecognised
on Resignation
Closing
Balance
Placement
16 Jan 2024 1
Balance
Report Date
-
2,816,889
9,425,092
-
-
-
-
9,000,000
128,205
-
1,667,981
287,170
-
-
-
-
14,325,337
9,000,000
-
-
-
-
-
-
-
-
-
36,000,000
-
-
-
-
-
-
-
36,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
(128,205)
-
-
-
36,000,000
5,000,000
41,000,000
2,816,889
9,425,092
9,000,000
-
-
1,667,981
287,170
-
-
-
-
-
-
-
2,816,889
9,425,092
9,000,000
-
-
1,667,981
287,170
(128,205)
59,197,132
5,000,000
64,197,132
Notes
1
2
As part of the share placement, on 14 February 2024, following shareholder approval, AKN issued 5,000,000 ordinary shares (at $0.04 per share) to an entity associated with Asimwe Kabunga.
9,425,092 shares are held by Bienitial International Industrial Co Ltd. ShiZhou Yin discloses these shares in his capacity a representative of Bienitial International Industrial Co Ltd.
Page 24
AuKing Mining Limited
2023 Annual Report
Director/Key Management Personnel options (number of options)
December 2023
Tranche
Opening
Balance
Tanzania
Acquisition
Recognised on
Appointment
Derecognised
on Resignation
Forfeited
Balance
31 Dec 2023
Issued
16 Jan 2024 1
Balance
Report Date
Vested and
exercisable
Directors
Asimwe Kabunga
Peter Tighe
ShiZhou Yin
Park Wei
Former Directors
Anna Nahajski-Staples
Ian Hodkinson
Key Management Personnel
Paul Williams
Paul Marshall
7,12
3
3
10
5
3
4
4
-
18,000,000
500,000
500,000
-
1,000,000
500,000
600,000
300,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
-
(500,000)
(500,000)
(500,000)
-
-
-
-
-
18,000,000
2,500,000
20,500,000
20,500,000
500,000
500,000
2,000,000
-
-
600,000
300,000
-
-
-
-
-
-
-
500,000
500,000
500,000
500,000
2,000,000
2,000,000
-
-
-
-
600,000
300,000
600,000
300,000
3,400,000
18,000,000
2,000,000
(1,000,000)
(500,000)
21,900,000
2,500,000
24,400,000
24,400,000
1 As part of the share placement, on 14 February 2024, following shareholder approval, AKN issued 2,500,000 free-attaching options exercisable at 10c on or before 31 December 2025 to an entity associated with Asimwe
Kabunga.
Tranche 3 options were issued to the Directors under the Employee Share and Option Plan. The options have an exercise price $0.17, an expiry date of 31 May 2025 and a 1-year service vesting
condition. These options have vested and are exercisable.
Tranche 4 options were issued to employees under the Employee Share and Option Plan. The options have an exercise price $0.11, and expiry date of 31 May 2025 and a 1-year service vesting
condition. These options have vested and are exercisable.
Tranche 5 options were issued to a Director under the Employee Share and Option Plan. The options have an exercise price $0.17 and a 1-year service vesting condition. Tranche 5 options
were issued on 16 December 2022. 500,000 Tranche 5 options were forfeited on resignation. The remaining options have vested and are exercisable.
Tranche 7 options were issued as part consideration to the vendors of the uranium and copper licences in Tanzania. The options are exercisable at $0.20 on or before 30 September 2025.
Tranche 10 options were issued to Bonacare Pty Ltd (an entity related to Park Wei) in consideration for investor relations services. The 2,000,000 options have an exercise price of $0.20 and
an expiration date of 30 September 2025. There are no vesting conditions.
Tranche 12 options were issued to shareholders as part of share placement in January 2024. The 2,500,000 options have an exercise price of $0.10, no vesting conditions and an expiration
date of 31 December 2025.
Page 25
AuKing Mining Limited
2023 Annual Report
(e) Additional Information
The factors that are considered to affect shareholder return since over the last 5 financial periods are summarised below:
Measures
Share price at end of financial period 1
December
2023
$
0.047
December
2022
$
0.096
December
2021
$
0.135
December
2020
$
0.002
December
2019
$
0.002
Market capitalisation at end of financial period ($M)
10.82
11.31
10.16
1.87
1.87
Loss for the financial period
12,664,692
2,345,223
1,762,610
1,427,002
1,142,555
Director and Key Management Personnel remuneration
781,219
728,656
606,296
561,120
561,120
1 AKN shares were suspended from the ASX official quotation from 30 September 2019 to 15 June 2021. The share price for 31 December 2020 and 31
December 2019 represents the last trade price before suspension. During 2021, AKN shares were subject to a 200:1 share consolidation.
Given that the remuneration is commercially reasonable, the link between remuneration, Company performance and
shareholder wealth generation is tenuous, particularly in the exploration and development stage of a minerals company.
Share prices are subject to the influence of international metal prices and market sentiment towards the sector and
increases or decreases may occur independently of executive performance or remuneration.
The Company may issue options to provide an incentive for directors and key management personnel which, it is believed,
is in line with industry standards and practice and is also believed to align the interests of directors and key management
personnel with those of the Company’s shareholders.
End of Remuneration Report
Page 26
AuKing Mining Limited
2023 Annual Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS, OFFICERS AND AUDITOR
Each Director and the Secretary of the Company has the right of access to all relevant information. The Company has
insured all of the Directors of AuKing Mining Limited. The contract of insurance prohibits the disclosure of the nature of
the liabilities covered and amount of the premium paid. The Corporations Act does not require disclosure of the
information in these circumstances.
To the extent permitted by law, the Company has agreed to indemnify its auditors, BDO, as part of the terms of its audit
engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment
has been made to indemnify BDO during or since the financial year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purposes 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 period.
AFTER BALANCE DATE EVENTS
On 16 January 2024, following shareholder approval, AKN issued 5,000,000 ordinary shares (at $0.04 per share) and
2,500,000 free-attaching options exercisable at 10c on or before 31 December 2025 to an entity associated with Asimwe
Kabunga.
DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of directors) held during the period and the
number of meetings attended by each Director was as follows:
Asimwe Kabunga
Peter Tighe
ShiZhou Yin
Park Wei
Anna Nahajski-Staples
Ian Hodkinson
Directors’ Meetings
A
9
8
9
4
3
3
B
9
9
9
4
3
3
A – Number of meetings attended
B – Number of meetings held during the time the director held office during the period
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company and/or the Group are important. Details of the amounts paid or
payable to the auditor (BDO Audit Pty Ltd and its associated entities) for non-audit services provided during the year are
set out below.
The Board of Directors has considered the position is satisfied that the provision of the non-audit services is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied
that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence
requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed by the board of directors to ensure they do not impact the impartiality
and objectivity of the auditor
none of the services undermines the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
During the year, the $26,778 were paid or payable for taxation services provided by the auditor of the parent entity, its
related practices and non-related audit firms.
Page 27
AuKing Mining Limited
2023 Annual Report
AUDITOR’S INDEPENDENCE DECLARATION
The Auditor’s Independence Declaration forms part of the Directors’ Report.
Signed in accordance with a resolution of the directors.
Director
28 March 2024
Page 28
AuKing Mining Limited
2023 Annual Report
AUDITOR'S INDEPENDENCE DECLARATION
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
DECLARATION OF INDEPENDENCE BY T R MANN TO THE DIRECTORS OF AUKING MINING LIMITED
As lead auditor of AuKing Mining Limited for the year ended 31 December 2023, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of AuKing Mining Limited and the entities it controlled during the period.
T R Mann
Director
BDO Audit Pty Ltd
Brisbane, 28 March 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Page 29
AuKing Mining Limited
2023 Annual Report
ADDITIONAL STOCK EXCHANGE INFORMATION
Additional information required by the Australian Stock Exchange Limited and not shown elsewhere in this report is as follows. The information
is current as at 4 March 2024.
(a)
Distribution of equity securities – AKN Ordinary Fully Paid Shares
Range
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
Securities
215,001,216
18,578,961
1,495,167
260,726
17,637
235,353,707
3,240,617
No. of holders
229
453
179
69
163
1,093
517
(b)
Twenty largest holders – AKN Ordinary Fully Paid Shares
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
KABUNGA HOLDINGS PTY LTD
VEN CAPITAL PTY LTD
MR PAVLE TOMASEVIC
BIENTIAL INTERNATIONAL INDUSTRIAL CO LTD
ROPA INVESTMENTS (GIBRALTAR) LIMITED
MR HASHIMU MUSEDEM MILLANGA
MS PHAROTH SAN & MR KADEN SAN
MS LETICIA KOKUTENGENEZA KABUNGA
MR PRISIN PRIVER MOSHI
M & K KORKIDAS PTY LTD
SCINTILLA STRATEGIC INVESTMENTS LIMITED
MR PETER GERARD TIGHE & MRS PATRICIA JOAN TIGHE
ANGKOR IMPERIAL RESOURCES PTY LTD
DC & PC HOLDINGS PTY LTD
FFKM PTY LTD
N&M GREENHALGH NOMINEES PTY LTD
MR BRIAN LAURENCE EIBISCH
BEARAY PTY LTD
MS PHAROTH SAN
168 SC WEALTH INVESTMENT PTY LTD
No. Shares
41,000,000
24,680,000
10,400,000
9,245,092
7,600,000
7,425,000
5,318,706
4,581,000
4,252,578
4,042,143
3,400,000
2,816,889
2,800,000
2,700,000
2,500,000
2,222,224
2,100,000
1,785,715
1,773,681
1,533,202
142,176,230
93,177,477
%
91.35
7.89
0.64
0.11
0.01
100.00
1.38
%
17.42%
10.49%
4.42%
3.93%
3.23%
3.15%
2.26%
1.95%
1.81%
1.72%
1.44%
1.20%
1.19%
1.15%
1.06%
0.94%
0.89%
0.76%
0.75%
0.65%
60.41%
39.59%
235,353,707
100.00%
(c)
Voting Rights
All fully paid ordinary shares carry one vote per share without restriction.
(d)
Substantial Shareholders
The Company has received the following substantial shareholder notices as at 4 March 2024:
•
•
Kabunga Holdings Pty Ltd holds an interest in 36,000,000 shares (17.42%)
Ven Capital Pty Ltd holds an interest in 24,680,000 (10.49%)
(e)
Unquoted Securities
There are the following unquoted securities as at 4 March 2024. Each option is convertible into one fully paid ordinary share.
Option Class
Expiry Date
Exercise
Price
Number of
Options
Holder above 20%
Director incentive options
31 May 2025
Employee incentive options
31 May 2025
Unlisted Sept 2025 options
30 Sep 2025
Unlisted Dec 2025 options
31 Dec 2025
$0.17
$0.11
$0.20
$0.10
3,000,000
2,700,000
64,500,000
15,625,000
N/A
N/A
Kabunga Holdings PL holds 18,000,000
(27.9%) of the options on issue
-
Page 30
AuKing Mining Limited
2023 Annual Report
(f)
Interests in Exploration Tenements
The Company holds the following tenement interests as at the date of this Report:
Project/Location
Tenement Reference Current Holder
AKN %
Interest
Comment
WESTERN AUSTRALIA
Koongie Park, Halls Creek
E80/ 4389
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 4766
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 4960
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 5076
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 5087
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 5127
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 5263
Koongie Park Pty Ltd
Koongie Park, Halls Creek
M80/ 276 (Sandiego)
Koongie Park Pty Ltd
Koongie Park, Halls Creek
M80/ 277 (Onedin)
Koongie Park Pty Ltd
Koongie Park, Halls Creek
E80/ 5707
Koongie Park Pty Ltd
Koongie Park, Halls Creek
P80/ 1878
Koongie Park Pty Ltd
Koongie Park, Halls Creek
P80/ 1879
Koongie Park Pty Ltd
Koongie Park, Halls Creek
P80/ 1880
Koongie Park Pty Ltd
Koongie Park, Halls Creek
P80/ 1881
Koongie Park Pty Ltd
Koongie Park, Halls Creek
P80/ 1882
Koongie Park Pty Ltd
Kununurra Region
E80/ 5794 (Bow River) Auking Mining Limited
TANZANIA
Manyoni
Manyoni
Manyoni
Manyoni
Manyoni
Manyoni
Itigi
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Mkuju
Karema
Notes:
PL12188
PL12190
PL12191
PL12193
PL12194
PL12323
PL12352
PL12184
PL12185
PL12186
PL12187
PL12189
PL12192
PL12485
PL12606
PL12607
PL12608
PL12179
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
92U Tanzania Ltd
Monaco Copper Ltd
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 1 and 2
Refer Note 3
Refer Note 3
Refer Note 4
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
1.
2.
3.
AKN has a 100% interest in these tenures, subject to a 1% NSR royalty in favour of former JV partner (Astral Resources NL).
Koongie Park Pty Ltd is a now wholly owned subsidiary of Auking Mining Limited as part of the JV ownership change.
These licences have been revoked by the Tanzanian Mining Commission and the matter is currently the subject of appeal to
the Minister of Mines.
4.
This licence is in the process of being surrendered.
Page 31
AuKing Mining Limited
2023 Annual Report
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
Employment and consultancy expenses
Depreciation expense
Costs related to the Tanzania transaction
Exploration expenditure - Tanzania
Impairment – exploration and evaluation assets
Other expenses
Loss before income tax
Note
2023
$
2022
$
5
8
7
4
(1,254,336)
(1,073,750)
(47,404)
(1,039,119)
(9,305,708)
(38,332)
(979,793)
(12,664,692)
(38,939)
(89,208)
-
-
(1,143,326)
(2,345,223)
Income tax expense
15
-
-
Loss after income tax
(12,664,692)
(2,345,223)
Other comprehensive income/(loss)
Foreign currency translation differences for foreign operations
Income tax
Other comprehensive income for the year, net of tax
22,954
-
22,954
-
-
-
Total comprehensive loss
(12,641,738)
(2,345,223)
Earnings per share
Basic and diluted loss per share
Cents
Cents
14
(6.40)
(2.44)
The Consolidated Statement of Comprehensive Income should be read in conjunction with the Notes to the Consolidated Financial Statements.
Page 32
AuKing Mining Limited
2023 Annual Report
Consolidated Balance Sheet
As at 31 December 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other receivables
Exploration and evaluation assets
Plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefit provisions
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
December 2023
$
December 2022
$
3
6
7
8
9
10
11
13
396,308
31,219
-
1,656,292
93,042
45,503
427,527
1,794,837
3,185
8,770,769
163,574
8,937,528
3,185
8,318,408
165,473
8,487,066
9,365,055
10,281,903
198,499
179,086
377,585
290,593
126,714
417,307
377,585
417,307
8,987,470
9,864,596
23,303,355
2,246,640
(16,562,525)
8,987,470
13,592,798
379,631
(4,107,833)
9,864,596
The Consolidated Balance Sheet should be read in conjunction with the Notes to the Consolidated Financial Statements
Page 33
AuKing Mining Limited
2023 Annual Report
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Consolidated Entity
Share
Capital
$
Reserves
$
Accumulated
Losses
$
Total
Equity
$
Balance at 1 January 2022
8,721,436
140,000
(1,762,610)
7,098,826
Transactions with owners in their capacity as owners
Issue of share capital
Share issue costs
Share based payments
Comprehensive income
Loss after income tax
Other comprehensive income
5,415,468
(544,106)
-
4,871,362
-
-
239,631
239,631
-
-
-
-
5,415,468
(544,106)
239,631
5,110,993
-
-
-
-
-
-
(2,345,223)
(2,345,223)
-
-
(2,345,223)
(2,345,223)
Balance at 31 December 2022
13,592,798
379,631
(4,107,833)
9,864,596
Balance at 1 January 2023
13,592,798
379,631
(4,107,833)
9,864,596
Transactions with owners in their capacity as owners
Issue of share capital
Share issue costs
Share based payments
Transfer expired options
Comprehensive income
Loss after income tax
Other comprehensive income
10,001,000
(290,443)
-
-
-
-
2,054,055
(210,000)
-
-
-
10,001,000
(290,443)
2,054,055
210,000
-
9,710,557
1,844,055
210,000
11,764,612
-
-
-
-
(12,664,692)
(12,664,692)
22,954
22,954
-
22,954
(12,664,692)
(12,641,738)
Balance at 31 December 2023
23,303,355
2,246,640
(16,562,525)
8,987,470
The Consolidated Balance Sheet should be read in conjunction with the Notes to the Consolidated Financial Statements
Page 34
AuKing Mining Limited
2023 Annual Report
Consolidated Cash Flow Statement
For the year ended 31 December 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for Tanzania transactions costs
Payments for other Koongie Park transactions costs
Interest received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Proceeds from the sale of plant and equipment
Payments for security deposits
Payments for exploration and evaluation assets
Receipts from government grants
Net cash provided by/(used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Cost associated with the issue of shares
Net cash provided by financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Net foreign exchange differences
Note
2023
$
2022
$
(2,025,057)
(1,758,353)
(46,709)
(1,603,478)
330
(89,208)
-
-
(3,674,914)
(1,847,561)
-
-
-
(765,635)
256,063
(509,572)
3,176,000
(251,043)
2,924,957
(1,259,529)
1,656,292
(455)
(88,372)
16,000
(715)
(4,354,503)
556,912
(3,870,678)
5,365,968
(491,513)
4,874,445
(843,784)
2,500,076
-
8
8
7
7
11
11
Cash and cash equivalents at the end of the period
396,308
1,656,292
The Consolidated Cash Flow Statement should be read in conjunction with the Notes to the Consolidated Financial Statements.
Page 35
AuKing Mining Limited
2023 Annual Report
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Introduction
This financial report covers the Consolidated Entity of AuKing Mining Limited (the “Company”) and its controlled entities
(together referred to as the “Consolidated Entity”). AuKing Mining Limited is a listed public company, incorporated and
domiciled in Australia. The Consolidated Entity is a for-profit entity for the purpose of preparing the financial statements.
Operations and principal activities
The principal activity of the Consolidated Entity is mineral exploration.
Currency
The financial report is presented in Australian dollars, which is the functional currency of the Company, and is rounded to
the nearest one dollar.
Authorisation of financial report
The financial report was authorised for issue on 28 March 2024.
Comparative figures
When required by accounting standards comparative figures have been adjusted to conform to changes in presentation
for the current financial period.
Basis of preparation
This general purpose financial report has been prepared in accordance with Australian Accounting Standards, and the
Corporations Act 2001.
Compliance with IFRS
The consolidated financial statements comply with International Financial Reporting Standards (IFRSs) adopted by the
International Accounting Standards Board (IASB).
Historical cost convention
The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Consolidated Entity’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in the notes below.
Accounting policies
(a)
Going Concern
As at 31 December 2023 the Consolidated Entity had cash reserves of $396,308 and net current assets of $49,942. For
the year ended 31 December 2023 the Consolidated entity incurred a loss of $12,626,360 (including $9,305,708 of
exploration expenditure that was expensed under the Consolidated Entity’s accounting policy disclosed in Note 7), incurred
operating cash outflows of $3,647,914 (including $1,603,478 of exploration expenditure that was expensed under the
Consolidated Entity’s accounting policy disclosed in Note 7) and had investing cash outflows of $509,572. As disclosed in
Note 20 the Consolidated Entity also has obligations to expend minimum amounts on exploration in tenement areas.
Currently the exploration expenditure obligations for the 12 months ending 31 December 2024 to maintain its current
tenement areas are $1,595,339.
Subsequent to year end the Consolidated Entity raised an additional $200,000 through a share placement with a director
after this was approved by shareholders at the 16 January 2024 EGM. On 26 March 2024 the Consolidated Entity also
entered into a short term loan funding agreement with a private investor for $250,000. Under the loan terms the interest
rate is 7% per month and is repayable in 3 months. Additional short term funding arrangements are currently being finalised
by the Consolidated Entity to obtain up to $1,000,000 in funding.
The Consolidated Entity requires further capital to fund future exploration activity and meet other necessary corporate
expenditure.
The ability of the Consolidated Entity to continue as a going concern is dependent upon securing funding in the form of a
capital raise, loan or other form of financing within the next month. This is in addition to amounts already raised subsequent
to balance date. These funds are required to continue planned exploration and meet the Consolidated Entity’s working
capital requirements.
Page 36
AuKing Mining Limited
2023 Annual Report
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Consolidated Entity’s ability to continue as a going concern is also dependent upon one or more of the following:
1.
2.
3.
the ability of the Company to raise additional capital in the future;
the ability of the Consolidated Entity to obtain short term funding within the next month to meet immediate funding
requirements; and
the successful exploration and subsequent exploitation of the Consolidated Entity’s tenements.
These conditions give rise to material uncertainty which may cast significant doubt over the Consolidated Entity’s ability to
continue as a going concern.
Whilst acknowledging these uncertainties, the directors have concluded that the going concern basis of preparation is
appropriate due to the following reasons:
1. As noted above management is in discussions with certain parties to provide funding including discussions to obtain
further short-term funding of up to $1,000,000;
2. Management is considering the issue of a convertible note and/or obtaining loan funding from a Director or third party;
To date the Consolidated Entity has funded its activities through issuance of equity securities, and it is expected that
3.
the Consolidated Entity will be able to fund its future activities through further issuances of equity securities; and
The directors believe there is sufficient cash available for the Consolidated Entity to continue operating based on the
Company’s cash flow forecast.
4.
Should the Consolidated Entity be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the
financial statements.
This financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the
Consolidated Entity be unable to continue as a going concern.
(b)
New Accounting Standards and Interpretations
The accounting policies adopted are consistent with those of the previous financial year.
Several other amendments and interpretations applied for the first time during the year but these changes did not have an
impact on the Consolidated Entity’s financial statements and hence, have not been disclosed.
The Consolidated Entity has not early adopted any standards, interpretations or amendments that have been issued but
are not yet effective.
(c)
New Standards and Interpretations Not Yet Adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2023
reporting periods. The Consolidated Entity has decided against early adoption of these standards. The Consolidated
Entity’s assessment of the impact of these new standards and interpretations is that they are not expected to have a
material impact on the Group's financial assets or financial position, financial performance or disclosure.
Page 37
AuKing Mining Limited
2023 Annual Report
NOTE 2 ACQUISITION OF 92U PTY LTD
Consideration
On 30 January 2023 AKN completed the purchase of various prospective uranium and copper licences in Tanzania. The
purchase price was discharged by AKN through the issue of 60,000,000 ordinary shares and 30,000,000 options
exercisable at $0.20 on or before 30 September 2025. The transaction was accounted for as an asset acquisition.
60,000,000 AKN shares 1
30,000,000 AKN options 2
Total consideration
6,300,000
1,402,230
7,702,230
1 60,000,000 AKN shares were issued on 30 January 2023 on which AKN shares had a closing price of $0.105 per share.
2 30,000,000 AKN options were issued on 30 January 2023. The value of the options were calculated using the following
assumptions:
Grant date
Exercise price
Share price at grant date
30 January 2023
$0.20
$0.105
Expiry date
30 September 2025
Life of the instruments
Share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per instrument
Assets and Liabilities Acquired
2.7 years
96.2%
Nil
3.18%
Binomial
$0.0467
The value of consideration has been attributed to the uranium and copper licences acquired. In line with the accounting
policy (refer Note 7), this amount has been expensed in full through the Statement of Comprehensive Income.
There were no other assets or liabilities acquired.
Net Cash Outflow
There was no impact on cash as a result of the acquisition.
Acquisition costs
Costs related to the acquisition of 92U Pty Ltd were;
5,000,000 AKN shares issued as advisory fees to Vert Capital 1
10,000,000 AKN options as advisory fees to Vert Capital 2
Other transactions costs
Total acquisition costs
525,000
467,410
46,709
1,039,119
1 5,000,000 AKN shares were issued on 30 January 2023 on which AKN shares had a closing price of $0.105 per share.
2 10,000,000 AKN options were issued on 30 January 2023. The value of the options were calculated using the following
assumptions:
Page 38
AuKing Mining Limited
2023 Annual Report
NOTE 2 ACQUISITION OF 92U PTY LTD (continued)
Grant date
Exercise price
Share price at grant date
30 January 2023
$0.20
$0.105
Expiry date
30 September 2025
Life of the instruments
Share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per instrument
2.7 years
96.2%
Nil
3.18%
Binomial
$0.0467
NOTE 3 CASH AND CASH FLOW INFORMATION
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of financing and
investing activities, which are disclosed as operating cash flows.
December 2023
December 2022
$
$
Reconciliation of cash flows used in operations with loss after income tax
Loss after income tax
(12,664,692)
(2,345,223)
Non-cash items in loss after income tax
Depreciation
Share based payments – Tanzania acquisition consideration and other
consultants
Share based payments – employee and director options
Impairment – exploration and evaluation assets
Gain on sale of plant and equipment
Movements in assets and liabilities
Other receivables
Other assets
Trade payables and accruals
Provisions
Cash flow from operations
Reconciliation of cash
47,404
8,731,956
107,699
38,332
-
61,823
-
(49,808)
52,372
38,939
-
169,631
-
(754)
132,685
(45,504)
147,614
55,051
(3,674,914)
(1,847,561)
Cash at the end of the financial period as shown in the cash flow statement is reconciled to items in the balance sheet as
follows:
Cash on hand and at bank
Cash on deposit
385,551
10,757
396,308
1,645,865
10,427
1,656,292
Page 39
AuKing Mining Limited
2023 Annual Report
NOTE 3 CASH AND CASH FLOW INFORMATION (continued)
Reconciliation of cash and non-cash movements in share capital for the year (refer to Note 11 for further details)
December 2023
December 2022
$
$
Opening balance at 1 January
13,592,798
8,721,436
Cash movements in share capital
Shares issued – cash settled
Share issue expenses – cash settled
Non-cash movements in share capital
Shares issued – Tanzania transaction
Share issue expenses – trade creditors
Share issue expenses – equity settled
Closing balance
Non-cash movements in investing activities
3,176,000
(251,043)
5,365,968
(491,513)
6,825,000
-
(39,400)
-
66,907
(70,000)
23,303,355
13,592,798
Exploration and evaluation assets amounts included in trade and other creditors at 31 December 2023 were $1,736
(2022: $20,616).
Exploration and evaluation assets were impaired by $38,322 during the year (2022: $Nil).
NOTE 4 OTHER EXPENSES
Corporate compliance and insurance expenses
Administration expenses
Investor relation and capital market advisory expenses
Telecom and IT expenses
Project generation expenses
NOTE 5 EMPLOYEE EXPENSES
Employee wages and director fees
Superannuation
Share based payments – employee and director options
Other employment expenses
NOTE 6 TRADE & OTHER RECEIVABLES
333,429
330,476
197,193
42,777
75,918
979,793
418,897
311,909
359,919
52,601
-
1,143,326
1,004,017
96,523
145,015
8,781
761,674
102,472
169,631
39,973
1,254,336
1,073,750
GST receivable
31,219
93,042
Page 40
AuKing Mining Limited
2023 Annual Report
NOTE 7 EXPLORATION AND EVALUATION
Koongie Park Project
Amounts recognised in the Consolidated Balance Sheet
Opening balance
Exploration expenditure during the period
Impairment of exploration and evaluation assets
Government grants relating to exploration
December 2023
December 2022
$
$
8,318,408
746,756
(38,332)
(256,063)
8,770,769
4,865,744
4,009,575
-
(556,911)
8,318,408
Accounting Policy - Koongie Park Project
Exploration costs are capitalised only when the Consolidated Entity has either a granted tenement in its name or an interest
through a earn-in and joint venture arrangement. Costs are only carried forward to the extent that they are expected to be
recouped through the successful development of the area or sale of the respective area of interest or where activities in
the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable
reserves and active or significant operations in relation to the area are continuing.
Under the terms of the Earn-in and Joint Venture Agreement dated 8 February 2021 (JVA), upon the participating interest
of Astral Resources (AAR) in the Koongie Park Joint Venture (KPJV) diluting below 10%, AAR is deemed to have withdrawn
from the JVA and the remaining participating interest converts to a net smelter return royalty. AAR’s participating interest
was deemed to have diluted below 10% with effect from 30 June 2023 and AKN moved to the 100% participating interest
at the same time.
AAR retains the right to explore for and develop gold and other precious metals within the Koongie Park project area,
including platinum group elements. These rights do not apply to the mining licences on which the Onedin and Sandiego
deposits are situated.
Tanzania Projects
Amounts recognised in the Consolidated Statement of Comprehensive Income
Acquisition of Tanzania projects- refer to note 2
Exploration expenditure during the period
7,702,230
1,603,478
9,305,708
-
-
-
Accounting Policy – Tanzania Projects
Exploration costs, including the costs to initially acquire the various prospective uranium and copper licences (refer Note
2) are expensed when incurred. The Consolidated Entity has adopted this accounting policy for areas of interest in
environments where there is heightened sovereignty and other risks compared to Australia.
NOTE 8 PLANT AND EQUIPMENT
Field equipment at cost
Accumulated depreciation
Motor vehicles at cost
Accumulated depreciation
Office equipment at cost
Accumulated depreciation
54,108
(10,067)
44,041
145,126
(51,921)
93,205
61,890
(35,562)
26,328
8,603
(878)
7,725
145,126
(28,704)
116,422
61,890
(20,564)
41,326
Total plant and equipment
163,574
165,473
Page 41
AuKing Mining Limited
2023 Annual Report
NOTE 8 PLANT AND EQUIPMENT (continued)
Movements during the year
December 2023
Opening balance
Additions
Disposals
Depreciation
Closing balance
December 2022
Opening balance
Additions
Disposals
Depreciation
Closing balance
Field
Equipment
7,725
Motor
Vehicles
116,422
Office
Equipment
41,326
45,505
-
(9,189)
44,041
Field
Equipment
21,427
3,336
(15,246)
(1,792)
7,725
-
-
(23,217)
93,205
Motor
Vehicles
61,328
77,436
-
(22,342)
116,422
-
-
(14,998)
26,328
Office
Equipment
48,531
7,600
-
(14,805)
41,326
Total
165,473
45,505
-
(47,404)
163,574
Total
131,286
88,372
(15,246)
(38,939)
165,473
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable
amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are
recognised in profit or loss. A formal assessment of recoverable amount is made when impairment indicators are present.
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 benefits associated with the item will flow to the Consolidated Entity and the cost of the item
can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income
during the financial period in which they are incurred.
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over the asset’s useful life to the
Consolidated Entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated
over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The assets’
residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
Class of Fixed Asset
Field equipment
Motor vehicles
Office equipment
Depreciation Rates
10% - 20%
20%
20% - 25%
NOTE 9 TRADE & OTHER PAYABLES
Trade payables
Other payables and accrued expenses
Accrued wages and fees payable to Directors
NOTE 10 EMPLOYEE BENEFITS PROVISIONS
CURRENT
Employee benefits
December 2023
December 2022
$
$
21,424
141,947
35,128
198,499
55,272
220,321
15,000
290,593
179,086
126,714
Page 42
AuKing Mining Limited
2023 Annual Report
NOTE 11 SHARE CAPITAL
December 2023
December 2022
$
$
Fully paid ordinary shares
23,303,355
13,592,798
Ordinary Shares
At the beginning of the period
13,592,798
8,721,436
117,843,707
75,289,651
2023
$
2022
$
2023
Number
2022
Number
Shares issued to vendors of 92U Pty Ltd 1
Shares issued to transaction advisors 2
Share placement March 2023 3
Share placement November 2023 4
6,300,000
525,000
2,126,000
1,050,000
-
-
-
-
60,000,000
5,000,000
21,260,000
26,250,000
Share placement March 2022 5
Share placement May 2022 6
Rights issue May 2022 7
Share placement June 2022 8
Share placement October 2022 9
-
-
-
-
-
49,500
2,635,138
376,830
980,000
1,374,000
Share issue expenses
(290,443)
(544,106)
-
-
-
-
-
-
-
-
-
-
300,000
18,822,412
2,691,644
7,000,000
13,740,000
-
At reporting date
23,303,355
13,592,798
230,353,707
117,843,707
Notes
1.
2.
3.
4.
5.
6.
7.
8.
9.
60,000,000 shares issued to vendors of 92U Pty Ltd at $0.105 per share as part consideration for the acquisition of 92U Pty Ltd –
refer Note 2.
5,000,000 shares issued to Vert Capital as part consideration for advisory fees on the 92U Pty Ltd transaction – refer Note 2.
21,260,000 shares issued through a share placement at $0.10 per share.
26,250,000 shares issued through a share placement at $0.04 per share.
300,000 shares issued to Vert Capital in March 2022 in relation to the November 2021 placement.
18,822,412 shares issued through a share placement at $0.14 per share.
2,691,644 shares issued through a rights issue at $0.14 per share.
7,000,000 shares issued through a share placement at $0.14 per share.
13,740,000 shares issued through a share placement at $0.10 per share.
Page 43
AuKing Mining Limited
2023 Annual Report
NOTE 11 SHARE CAPITAL (continued)
Options
Tranche
Expiry Date
Exercise
Price
31 Dec
2022
Movements
Issued
Exercised
Tranche 1
30 Jun 2023
Tranche 2
30 Jun 2023
Tranche 3
31 May 2025
Tranche 4
31 May 2025
Tranche 5
31 May 2025
Tranche 6
30 Sep 2025
Tranche 7
30 Sep 2025
Tranche 8
30 Sep 2025
Tranche 9
30 Sep 2025
Tranche 10
30 Sep 2025
Tranche 11
30 Sep 2025
Tranche 12
31 Dec 2025
0.25
0.25
0.17
0.11
0.17
0.20
0.20
0.20
0.20
0.20
0.20
0.20
28,871,380
14,000,000
2,500,000
2,700,000
1,000,000
6,870,000
-
-
-
-
-
-
-
-
-
-
-
-
30,000,000
10,000,000
10,630,000
2,000,000
5,000,000
13,125,000
55,491,380
70,755,000
-
-
-
-
-
-
-
-
-
-
-
-
-
Lapsed/
Expired
31 Dec
2023
(28,871,380)
(14,000,000)
-
-
-
-
2,500,000
2,700,000
(500,000)
500,000
-
-
-
-
-
-
-
6,870,000
30,000,000
10,000,000
10,630,000
2,000,000
5,000,000
13,125,000
(43,371,380)
83,325,000
Tranche 1 options were issued to shareholders as part of previous capital raises. The options lapsed during the period.
Tranche 2 options were issued to the lead manager previous capital raises. The options lapsed during the period.
Tranche 3 options were issued to the Directors under the Employee Share and Option Plan. The options have an exercise
price $0.17 and a 1 year service vesting condition.
Tranche 4 options were issued to employees under the Employee Share and Option Plan. The options have an exercise
price $0.11 and a 1 year service vesting condition.
Tranche 5 options were issued to a Director under the Employee Share and Option Plan. The options have an exercise
price $0.17 and a 1 year service vesting condition. Tranche 5 options were issued on 16 December 2022. 500,000 Tranche
5 options were forfeited on resignation.
Tranche 6 options were issued to shareholders as part of the October 2022 share placement The options have an exercise
price of $0.20 and no vesting conditions.
Tranche 7 options were issued as part consideration to the vendors of the uranium and copper licences in Tanzania. The
30,000,000 options are exercisable at $0.20 on or before 30 September 2025.
Tranche 8 options were issued to Vert Capital Pty Ltd as part consideration for introduction of these project interests to
and assistance in securing the acquisition. The 10,000,000 options are exercisable at $0.20 on or before 30 September
2025.
Tranche 9 options were issued to shareholders as part of share placement in March 2023. The 10,630,000 options have
an exercise price of $0.20, no vesting conditions and an expiration date of 30 September 2025.
Tranche 10 options were issued to Bonacare Pty Ltd in consideration for investor relations services. The 2,000,000 options
have an exercise price of $0.20 and an expiration date of 30 September 2025.
Tranche 11 options were issued to options were issued to Vert Capital Pty Ltd as part consideration for capital raising
services. The 5,000,000 options are exercisable at $0.20 on or before 30 September 2025.
Tranche 12 options were issued to shareholders as part of the November 2023 share placement The options have an
exercise price of $0.10 and no vesting conditions.
NOTE 12 DIVIDENDS & FRANKING CREDITS
There were no dividends paid or recommended during the period. There are no franking credits available to
the shareholders of the Company.
Page 44
AuKing Mining Limited
2023 Annual Report
NOTE 13 RESERVES
Share based payment reserve
Foreign currency translation reserve
December 2023
December 2022
$
$
2,223,686
22,954
2,246,640
379,631
-
379,631
The foreign currency translation reserve records exchange rate differences arising from the translation of the financial
statements of foreign subsidiaries.
The share based payment reserve is used to record the value of share based payments provide to employees and
consultants for capital raising services.
Share based payment reserve movements during the year
Opening balance
Director and employee options
Consultant options (refer note 18)
Options issued to the vendors of 92U Pty Ltd (refer note 2)
Transfer of expired options to accumulated losses
379,631
107,699
544,126
1,402,230
(210,000)
2,223,686
140,000
169,631
70,000
-
-
379,631
NOTE 14 EARNINGS PER SHARE
The Consolidated Entity presents basic and diluted earnings per share (EPS) data for its ordinary shares.
Total losses used to calculate basic and dilutive EPS
(12,664,692)
(2,345,223)
2023
Number
2022
Number
Weighted average number of ordinary shares outstanding during the period
197,745,543
96,232,257
Weighted average number of dilutive options outstanding
Weighted average number of ordinary shares outstanding during the period
used in calculating EPS and dilutive EPS
-
-
197,745,543
96,232,257
Basic and diluted loss per share - cents
(6.40)
(2.44)
At 31 December 2023, there were 83,325,000 (2022: 55,491,380) options outstanding which could potentially dilute basic
earnings per share in the future. Because there is a loss from operations, these would have an anti-dilutive effect and
therefore diluted earnings per share is the same as the basic earnings per share.
Refer to Note 23 for issuance of ordinary shares after balance sheet date. These issuances would have changed
significantly the number of ordinary shares outstanding at the end of the reporting period if occurred before the end of the
reporting period.
Page 45
AuKing Mining Limited
2023 Annual Report
NOTE 15 INCOME TAX
Income tax expense
The income tax expense for the period comprises current income tax expense and deferred tax expense. Current income
tax expense charged to profit or loss is the tax payable on taxable income.
A reconciliation of income tax expense/(benefit) applicable to accounting profit before income tax at the statutory income
tax rate to income tax expense at the Consolidated Entity’s effective income tax rate for the periods ended 31 December
2023 and 31 December 2022 is as follows:
December 2023
December 2022
$
$
Accounting loss before income tax
(12,664,360)
(2,345,223)
Tax at the Australian tax rate of 30.0% (2022: 30.0%)
Non-deductible/(assessable) items
Deferred tax assets not brought to account
Income tax expense
Current tax liabilities
(3,799,408)
2,976,848
822,560
-
(703,567)
80,196
623,371
-
Current tax liabilities are measured at the amounts expected to be paid to the relevant taxation authority. The Consolidated
Entity did not have any current tax liabilities at 31 December 2023 (2022: Nil).
Deferred tax balances
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the period
as well as unused tax losses.
Unrecognised temporary differences and tax losses
Tax losses
Recognised temporary differences and tax losses
Deferred tax assets and liabilities are attributable to the following:
Provisions
Exploration and evaluation assets
Deferred tax attributed to temporary differences not recognised
Tax losses carried forward
Net deferred tax liability/(asset)
December 2023
December 2022
$
$
43,287,996
39,866,437
53,726
(2,631,231)
2,577,505
-
-
38,015
(2,495,522)
2,457,508
-
-
Page 46
AuKing Mining Limited
2023 Annual Report
NOTE 16 RELATED PARTY AND KEY MANAGEMENT PERSONNEL
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Key management personnel compensation
Key management personnel comprise directors and other persons having authority and responsibility for planning, directing
and controlling the activities of the Consolidated Entity.
Summary
Short-term employee benefits
Post-employment benefits
Share-based payments
December 2023
December 2022
$
$
684,575
29,023
67,621
781,219
572,164
27,603
128,889
728,656
Detailed remuneration disclosures are provided in the remuneration report on pages 20 to 26.
Amounts owed to Key Management Personnel
$35,128 is owed to Key Management Personnel for unpaid remuneration (December 2022: $15,000). These amounts
were at call and did not bear interest.
Other related party transactions
On 30 January 2023 AKN acquired various prospective uranium and copper licences in Tanzania through the acquisition
of 92U Pty Ltd (refer Note 2).
Kabunga Holdings Pty Ltd, an entity associated with AKN’s Chairman Asimwe Kabunga, held a 60% interest of 92U Pty
Ltd. In consideration for Kabunga Holdings Pty Ltd interest in 92U Pty Ltd, it was issued 36,000,000 AKN shares and
18,000,000 options exercisable at $0.20 on or before 30 September 2025.
The value of the consideration for the transaction was:
36,000,000 AKN shares with a value of $0.105 per share
18,000,000 AKN options with a value of $0.0467 per option
Total consideration
NOTE 17 FINANCIAL RISK MANAGEMENT
3,780,000
840,600
4,620,600
The Consolidated Entity's financial instruments consist mainly of deposits with banks and accounts receivable and payable.
The main risk arising from the financial instruments is foreign exchange risk.
There have been no substantive changes in the Consolidated Entity's exposure to financial instrument risks, its objectives,
policies and processes for managing those risks or the methods used to measure them from previous periods unless
otherwise stated in this note.
The Board has overall responsibility for the determination of the Consolidated Entity's risk management objectives and
policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for day to day management of
these risks to the Chief Executive Officer and the Chief Financial Officer. The overall objective of the Board is to set
policies that seek to reduce risk as far as possible without unduly affecting the Consolidated Entity's competitiveness and
flexibility. Further details regarding these policies are set out below:
Page 47
AuKing Mining Limited
2023 Annual Report
NOTE 17 FINANCIAL RISK MANAGEMENT (continued)
(a) Credit Risk
Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the
Consolidated Entity incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing to the
Consolidated Entity.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance
sheet and notes to the financial statements. There is no collateral held as security at 31 December 2023.
Credit risk is reviewed regularly by the Board. It arises from deposits with financial institutions.
The Consolidated Entity does not have any material credit risk exposure to any single debtor or group of debtors under
financial instruments entered into by the Consolidated Entity.
The credit quality of cash and cash equivalents is considered strong. The counterparty to these financial assets are
large financial institutions with strong credit ratings.
(b) Liquidity risk
Liquidity risk is the risk that the Consolidated Entity may encounter difficulties raising funds to meet financial obligations
as they fall due.
Liquidity risk is reviewed regularly by the Board.
The Consolidated Entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash
resources are maintained. The Consolidated Entity did not have any financing facilities available at balance date.
Refer to Note 1 “Going Concern” for details on the Consolidated Entity’s current financial position, funding arrangements
and its ability to meet its future obligations.
(c) Market Risk
Market risk arises from the use of interest bearing, tradeable and foreign currency financial instruments. It is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate
risk), foreign exchange rates (currency risk) or other market factors (other price risk).
The Consolidated Entity does not have any material exposure to market risk.
(d) Capital Risk Management
When managing capital, the director’s objective is to ensure the entity continues as a going concern and to maintain a
structure that ensures the lowest cost of capital available and to ensure adequate capital is available for exploration and
evaluation of tenements. In order to maintain or adjust the capital structure, the Consolidated Entity may seek to issue
new shares.
The Consolidated Entity has no minimum capital requirements.
Refer to Note 1 “Going Concern” for details on the Consolidated Entity’s current financial position, funding arrangements
and its ability to meet its future obligations.
(e) Net Fair Values
The net fair values of financial assets and liabilities approximate their carrying value. The aggregate net fair values and
carrying amounts of financial assets and liabilities are disclosed in the balance sheet and in the notes to the financial
statements.
Page 48
AuKing Mining Limited
2023 Annual Report
NOTE 18 SHARE BASED PAYMENTS
Tanzania Acquisition
December 2023
Tranche
Grant Date
Expiry Date
Tranche 7
30 Jan 2023
30 Sep 2025
Tranche 8
30 Jan 2023
30 Sep 2025
Weighted average exercise price
Exercise
Price
Balance at
start of year
Granted Exercised
Lapsed
Balance at
end of year
Vested and
exercisable
at end of
year
$0.20
$0.20
-
-
-
-
30,000,000
10,000,000
-
$0.20
-
-
-
-
-
-
-
-
30,000,000
30,000,000
10,000,000
10,000,000
-
$0.20
-
-
On 30 January 2023 AKN completed the purchase of various prospective uranium and copper licences in Tanzania. The
purchase price was discharged by AKN through the issue of 60,000,000 ordinary shares and 30,000,000 options
exercisable at $0.20 on or before 30 September 2025.
60,000,000 AKN shares 1
30,000,000 AKN options 2
Total consideration
6,300,000
1,402,230
7,702,230
AKN also incurred transaction costs to acquire the Tanzania licences of which $992,410 related to options and shares
issued to Vert Capital, as part consideration for introduction of these project interests to and assistance in securing the
acquisition.
5,000,000 AKN shares issued as advisory fees to Vert Capital 1
10,000,000 AKN options as advisory fees to Vert Capital 2
Share based acquisition costs
525,000
467,410
992,410
1 AKN shares were issued on 30 January 2023 on which AKN shares had a closing price of $0.105 per share.
2 AKN options were issued on 30 January 2023. The value of the options were calculated using the following assumptions:
Grant date
Exercise price
Share price at grant date
30 January 2023
$0.20
$0.105
Expiry date
30 September 2025
Life of the instruments
Share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per instrument
2.7 years
96.2%
Nil
3.18%
Binomial
$0.0467
The weighted average remaining contractual life of Tanzania acquistion share options outstanding at the end of the year
was 1.75 years.
Consultant Options
December 2023
Tranche
Grant Date
Expiry Date
Tranche 10
21 Mar 2023
30 Sep 2025
Tranche 11
17 Nov 2023
30 Sep 2025
$0.20
$0.20
-
-
2,000,000
5,000,000
Tranche 2
14 Mar 2022
30 June 2023
$0.25
4,000,000
Tranche 2
27 Jun 2022
30 June 2023
$0.25
10,000,000
-
-
Weighted average exercise price
14,000,000
17,000,000
$0.25
$0.20
Exercise
Price
Balance at
start of year
Granted Exercised
Lapsed
Balance at
end of year
Vested and
exercisable
at end of
year
-
-
-
-
-
-
-
-
2,000,000
2,000,000
5,000,000
5,000,000
(4,000,000)
(10,000,000)
-
-
-
-
(14,000,000)
17,000,000
17,000,000
$0.25
$0.20
$0.20
Page 49
AuKing Mining Limited
2023 Annual Report
NOTE 18 SHARE BASED PAYMENTS (continued)
The weighted average remaining contractual life of consultant options outstanding at the end of the year was 1.75 years.
2023 Consulting Fees (Tranche 10)
Options were issued to Bonacare Pty Ltd in consideration for investor relations services. The 2,000,000 options have an
exercise price of $0.20 and an expiration date of 30 September 2025. The value of the options were calculated using the
following assumptions:
Grant date
Exercise price
Share price at grant date
21 March 2023
$0.20
$0.059
Expiry date
30 September 2025
Life of the instruments
Share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per instrument
2.5 years
98.5%
Nil
2.86%
Binomial
$0.0187
November 2023 Placement (Tranche 11)
As part of the November 2023 share placement, the Company agreed to issue to the lead manager, Vert Capital Pty Ltd,
5,000,000 options at an exercise price of $0.20 on or before 30 September 2025. The value of the options were calculated
using the following assumptions:
Grant date
Exercise price
Share price at grant date
17 November 2023
$0.20
$0.049
Expiry date
30 September 2025
Life of the instruments
Share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per instrument
1.9 years
92.0%
Nil
4.16%
Binomial
$0.0079
November 2021 Placement (Tranche 2)
As part of the November 2021 share placement, the Company agreed to issue to the lead manager, Vert Capital Pty Ltd,
4,000,000 options exercisable at 25c on or before 30 June 2023. The options were issued in March 2022 following
shareholder approval and have now expired.
June 2022 Placement (Tranche 2)
As part of the June 2022 share placement, the Company issued to the lead manager, Vert Capital Pty Ltd, 10,000,000
options exercisable at 25c on or before 30 June 2023. The options have now expired.
Page 50
AuKing Mining Limited
2023 Annual Report
NOTE 18 SHARE BASED PAYMENTS (continued)
Director and Employee Options
The Company has granted options over ordinary shares to employees (including directors) in recognition of services
provided to the Company. The options were granted for nil consideration and are not quoted on the ASX. Options granted
under the plan carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share.
December 2022
Tranche
Tranche 3
Grant Date
Expiry Date
30 Jun 2022
31 May 2025
Tranche 4
30 Jun 2022
31 May 2025
Exercise
Price
Balance at
start of year
$0.17
$0.11
2,500,000
2,700,000
Tranche 5
16 Dec 2022
31 May 2025
$0.17
1,000,000
Weighted average exercise price
6,200,000
$0.144
Granted Exercised
Lapsed
Balance at
end of year
Vested and
exercisable
at end of
year
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
2,500,000
2,700,000
2,700,000
(500,000)
500,000
500,000
(500,000)
5,700,000
5,700,000
$0.17
$0.142
$0.142
The weighted average remaining contractual life of director and employee share options outstanding at the end of the year
was 1.4 years.
Fair value of options granted
The assessed fair value at the date of grant of options issued is determined using an option pricing model that takes into
account the exercise price, the underlying share price at the time of issue, the term of the option, the underlying share’s
expected volatility, expected dividends and the risk free interest rate for the expected life of the instrument. The value of
the options was calculated using the inputs shown below:
Inputs into pricing model
Directors June 2022
Employees June 2022
Directors December 2022
Mutually agreed terms
Grant date
Exercise price
Vesting conditions
Share price at grant date
Life of the options
Underlying share price volatility
Expected dividends
Risk free interest rate
Pricing model
Fair value per option
31 May 2022
31 May 2022
$0.17
30 June 2022
30 June 2022
$0.11
Ongoing employment
until 30 June 2023
Ongoing employment
until 30 June 2023
$0.100
3.00 years
103%
Nil
2.86%
Binomial
$0.0542
$0.080
2.92 years
100%
Nil
3.16%
Binomial
$0.0449
1 October 2022
16 December 2022
$0.17
Ongoing employment until 1
October 2023 1
$0.093
2.67 years
99%
Nil
3.14%
Binomial
$0.0412
1 The Board exercised its discretion to vest in full 1,000,000 options granted to Anna Nahajski-Staples upon her resignation.
Total expenses arising from employee share-based payment transactions recognised during the period as part of
employment benefit expenses were as follows:
December 2023
December 2022
$
$
Share based payments – employee and director options
107,699
169,631
Page 51
AuKing Mining Limited
2023 Annual Report
NOTE 19 SEGMENT REPORTING
Reportable Segments
The Consolidated Entity has identified its operating segment based on internal reports that are reviewed and used by the
executive team in assessing performance and determining the allocation of resources. The Consolidated Entity does not
yet have any products or services from which it derives an income.
Management currently identifies the Consolidated Entity as having only two reportable segments, being:
• Exploration for minerals in Australia at the Koongie Park project; and
• Exploration for minerals in Tanzania.
The following is an analysis of the Consolidated Entity’s revenue and results by reportable operating segment for the period
under review.
Tanzania
Australia
Unallocated Consolidated
Year Ended 31 December 2023
$
Expenses:
Tanzania acquisition expenses
Tanzania exploration expenses
Other operating expenses
Segment result
Income tax
Net Loss
Non-cash and other significant items:
Depreciation
Share based payments
Tanzania acquisition expenses
Tanzania exploration expenses
Assets:
Segment assets
Liabilities:
Segment liabilities
Segment acquisitions:
Plant and equipment
Exploration expenditure
Details of non-current assets:
Other receivables
Exploration and evaluation assets
Plant and equipment
Year Ended 31 December 2022
(1,039,119)
(9,305,708)
(112,254)
(233,119)
(1,936,160)
$
-
-
$
-
-
$
(1,039,119)
(9,305,708)
(2,281,533)
(12,626,360)
(10,457,081)
(233,119)
(1,936,160)
(12,626,360)
-
-
-
1,039,119
9,305,708
-
-
-
(12,626,360)
25,976
-
21,428
145,015
47,404
145,015
1,039,119
9,305,708
114,792
8,931,277
357,318
9,403,387
21,849
51,398
304,338
377,585
-
-
-
-
-
44,504
746,755
-
-
44,504
746,755
-
3,185
8,809,101
142,294
21,280
3,185
8,809,101
163,574
In the prior period, the Consolidated Entity only had one reportable segment, being exploration for minerals in Australia.
The prior period financial results from this segment are equivalent to the financial statements of the consolidated entity. All
assets were located in Australia.
Page 52
AuKing Mining Limited
2023 Annual Report
NOTE 20 COMMITMENTS
Future exploration
The Consolidated Entity has certain obligations to expend minimum amounts on exploration in tenement areas. These
obligations may be varied from time to time and are expected to be fulfilled in the normal course of operations of the
Consolidated Entity.
Exploration obligations to be undertaken – Koongie Park:
Payable within one year
Payable between one year and five years
Payable after five years
Exploration obligations to be undertaken – Tanzania:
Payable within one year
Payable between one year and five years
Payable after five years
December 2023
December 2022
$
$
365,420
1,082,040
273,000
1,720,460
1,229,919
2,459,838
-
3,689,757
525,420
1,438,860
273,000
2,237,280
-
-
-
-
To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. If the
minimum expenditure requirements are not met, the Company has the option to negotiate new terms or relinquish the
tenements or to meet expenditure requirements by joint venture or farm in agreements.
The Consolidated Entity currently does not have any other obligations to expend minimum amounts on either operating
leases or exploration in tenement areas.
NOTE 21 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or contingent assets at 31 December 2023 (31 December 2022: Nil).
NOTE 22 AUDITORS’ REMUNERATION
Remuneration paid for:
- Auditing and reviewing the financial report
Other services
- Tax compliance
December 2023
December 2022
$
$
62,495
62,495
30,054
30,054
NOTE 23 EVENTS AFTER BALANCE SHEET DATE
On 16 January 2024, following shareholder approval, AKN issued 5,000,000 ordinary shares (at $0.04 per share) and
2,500,000 free-attaching options exercisable at 10c on or before 31 December 2025 to an entity associated with Asimwe
Kabunga.
Page 53
AuKing Mining Limited
2023 Annual Report
NOTE 24 PARENT ENTITY INFORMATION
The Parent Entity of the Consolidated Entity is AuKing Mining Limited.
Parent Entity Financial Information
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Share capital
Reserves
Accumulated losses
Total equity
Loss after income tax
Other comprehensive income
Total comprehensive loss
Controlled Entities of the Parent Entity
AKN (Koongie Park) Pty Ltd
Koongie Park Pty Ltd
92 U Pty Ltd
92 U Tanzania Limited
Monaco Copper Limited
December 2023
December 2022
$
$
408,969
8,882,839
9,291,808
304,338
304,338
1,663,839
8,435,637
10,099,475
336,964
336,964
8,987,470
9,762,511
23,303,355
2,223,686
(16,539,571)
8,987,470
13,592,798
379,631
(4,209,918)
9,762,511
(12,539,653)
(2,584,076)
-
-
(12,539,653)
(2,584,076)
2023
Interest %
100%
2022
Interest %
100%
Country of Incorporation
Australia
100%
100%
100%
100%
-
-
-
-
Australia
Australia
Tanzania
Tanzania
Commitments, Contingencies and Guarantees of the Parent Entity
The Parent Entity has no commitments, contingent assets, contingent liabilities or guarantees at balance date.
Page 54
AuKing Mining Limited
2023 Annual Report
DIRECTORS' DECLARATION
In the Directors opinion:
(a)
the attached consolidated financial statements and notes that are set out on pages 32 to 54 and the remuneration
report set out on pages 20 to 26 in the Directors’ Report are in accordance with the Corporations Act 2001 and
other mandatory professional reporting requirements, including:
(i)
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
giving a true and fair view of the Consolidated Entity's financial position as at 31 December 2023 and of its
performance for the financial period ended on that date.
(b)
(c)
the financial statements also comply with International Financial Reporting Standards as disclosed in Note 1 to the
consolidated financial statements; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of directors.
Director
28 March 2024
Page 55
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of AuKing Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of AuKing Mining Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated balance sheet as at 31 December 2023, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated cash flow statement for the year then ended, and notes to the financial report, including
material accounting policy information and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Page 56
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. 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.
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
The Group carries exploration and
evaluation assets in accordance with the
Group’s accounting policy for exploration
and evaluation assets as set out in Note 7.
The recoverability of exploration and
evaluation asset is a key audit matter due
to the significance of the total balance as a
proportion of total assets and the level of
procedures undertaken to evaluate
management’s application of the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources (‘AASB 6’)
in light of any indicators of impairment
that may be present.
Our procedures included:
•
Obtaining evidence that the Group has valid
rights to explore in the areas represented by
the capitalised exploration and evaluation
expenditure by obtaining supporting
documentation such as licence agreements
and also considering whether the Group
maintains the tenements in good standing.
• Making enquiries of management with
•
respect to the status of ongoing exploration
programs in the respective areas of interest.
Enquiring of management, reviewing ASX
announcements and reviewing directors'
minutes to ensure that the Group had not
decided to discontinue activities in any
applicable areas of interest and to assess
whether there are any other facts or
circumstances that existed to indicate
impairment testing was required.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Page 57
Accounting for Acquisition of 92U Pty Ltd
Key audit matter
How the matter was addressed in our audit
During the period The Group acquired 92U
Pty Ltd. Refer to note 2 of the financial
report.
The accounting treatment for this
acquisition was a key audit matter due to
the significance of the total balance
recorded as an exploration expense through
the consolidated statement of
comprehensive income, and the level of
procedures undertaken to evaluate
management’s assessment of the
acquisition.
Our procedures included, but were not limited to:
•
•
•
•
•
•
Obtaining an understanding of the
transaction, including an assessment of
whether the transaction constituted an asset
or business acquisition.
Reviewing the sale and purchase agreement
to understand key terms and conditions.
Assessing management’s determination of
the fair value of consideration paid and
agreeing the consideration to supporting
documentation.
Assessing the allocation of the purchase price
to the net assets which have been acquired.
Assessing managements adoption of an
accounting policy to expense exploration
expenditure relating to the relevant
tenements acquired.
Assessing the adequacy of the related
disclosures in Note 2 of the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 31 December 2023, but does not include
the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
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.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Page 58
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 26 of the directors’ report for the
year ended 31 December 2023.
In our opinion, the Remuneration Report of AuKing Mining Limited, for the year ended 31 December
2023, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
T R Mann
Director
Brisbane, 28 March 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Page 59