Auriant Mining
Annual Report 2022

Loading PDF...

More annual reports from Auriant Mining:

2023 Report
2022 Report
2021 Report
2020 Report
2019 Report

Share your feedback:


Plain-text annual report

AURIS MINERALS LIMITED ANNUAL REPORT 30 JUNE 2022 ABN 77 085 806 284 DIRECTORS Neville Bassett Craig Hall Mike Hendriks Non-Executive Chair Non-Executive Director Managing Director COMPANY SECRETARY Chris Achurch AUSTRALIAN BUSINESS NUMBER 77 085 806 284 REGISTERED AND PRINCIPAL OFFICE Level 3, 18 Richardson Street West Perth, Western Australia 6005 PO Box 298 West Perth, Western Australia 6872 Telephone: (+61-8) 6109 4333 Email: general@aurisminerals.com.au Website: www.aurisminerals.com.au SHARE REGISTRY Automic Pty Ltd Level 5, 191 St George’s Terrace Perth, Western Australia 6000 Telephone (+61-8) 9324 2099 Email: hello@automic.com.au Website: www.automicgroup.com.au AUDITORS Elderton Audit Pty Ltd Level 2, 267 St Georges Terrace Perth, Western Australia 6000 AUSTRALIAN SECURITIES EXCHANGE Level 40, Central Park 152-158 St Georges Terrace Perth, Western Australia 6000 ASX CODES Ordinary Shares: AUR Options: AURO Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 1 | P a g e CONTENTS Chair’s Letter Directors’ Report Schedule of Mining Tenements Additional Shareholder Information Auditor’s Independence Declaration Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cashflows Notes to the Consolidated Financial Reports Directors’ Declaration Independent Auditor’s Review Report 3 4 29 31 35 36 37 38 39 40 61 62 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 2 | P a g e CHAIR’S LETTER Dear valued Shareholder, I am pleased to present you with the Auris Minerals Annual Report for the financial year ended 30 June 2022 (“FY 2022”). Over the past 12 months, Auris has maintained its focused and targeted approach to exploring our strategic 1,385km² portfolio in the Bryah Basin of Western Australia. Much of our exploration work during the year concentrated on our Feather Cap and Forrest Projects respectively, where we continued to improve our technical understanding of these assets in our pursuit to unlock much larger, economic mineralised systems. Initial Air Core drilling at the Durack East gold target within Feather Cap returned a range of pleasing high-grade intersections. These results further confirmed the extension of gold mineralisation from the Morck Well Project to the east, into the Feather Cap Project. A maiden RC drilling programme was subsequently completed at Durack East designed to further evaluate this high-grade gold mineralisation. This RC programme demonstrated the potential for two mineralised structures which further supports our view that a larger mineralised strike of around 6.2km exists between the Morck Well and Feather Cap Projects. Drilling was also completed at the Forrest Copper Project to further evaluate regional targets outside existing JORC resource of 2.4 Mt @ 1.7% Cu for 41,500t Cu metal. Results from this drilling highlighted a new copper- gold target comprising the Robinson Range Formation sediments. Further evaluation of the available data is now being undertaken to refine our next phase of work at Forrest. We continued to work closely with our exploration JV partner Sandfire Resources (ASX: SFR) during the year, and a key highlight for the JV was the recent completion of successful 1.2km diamond hole at the Citra Prospect at Morck Well, with initial observations highlighting previously uncharted DeGrussa formation sediments. This is an exciting development for the JV and assays and DHEM for this hole are pending and further details on follow- up drilling will be provided in due course. Post year end, Sandfire gave formal notice to withdraw from the respective Cheroona and Cashmans Joint Ventures. We thank Sandfire for their efforts on these tenements and our technical team is currently in the process of reviewing all technical data on these projects to determine our next steps. As we have always done, your Board continues to take a conservative approach towards operating costs, and we are currently reviewing our costs across the entire business. This includes reviewing potential rationalisation opportunities within our portfolio without comprising our exploration progress in the Bryah Basin. From a funding perspective, we completed a $2.38 million Entitlement Issue in November 2021 which has ensured our healthy cash position. I would like to thank our corporate advisors Lazarus Corporate Finance and our loyal shareholders for their support in raising this capital. While the effects of the global pandemic continued to be felt and capital market conditions deteriorated somewhat earlier this year, Auris remains well capitalised entering the new financial year. Importantly, our strong cash position for a junior explorer ensures we have the flexibility to assess other value accretive projects and act quickly should a compelling opportunity arise. The Company looks forward to providing you with further updates as our exploration programmes advance in the Bryah Basin and as we continue to assess new opportunities for your company. I thank you for your continued support. Yours sincerely, NEVILLE BASSETT Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 3 | P a g e DIRECTORS’ REPORT The directors present their report together with the financial report of Auris Minerals Limited (the Company or Auris), for the year ended 30 June 2022 and the auditor’s report thereon. 1. Directors and officers Directors The directors of the Company at any time during or since the end of the financial year are: Name Period of Directorship Mr Neville Bassett – Non-Executive Chair Appointed 20 April 2018 Mr Craig Hall – Non-Executive Director Appointed 1 August 2018 Mr Mike Hendriks – Managing Director Appointed 20 November 2020 The qualifications, experience, interest in shares and options, and other directorships of the directors in office at the date of this report and during the financial year are: Current Directors Neville Bassett Non-Executive Chair Experience and expertise Mr Bassett is a Chartered Accountant specialising in corporate, financial and management advisory services. He has been involved with numerous public company listings and capital raisings, mergers and acquisitions and maintains significant knowledge and exposure to the Australian financial markets. He has a wealth of experience in matters pertaining to the Corporations Act, ASX listing requirements, corporate taxation and finance. Mr Bassett is a Fellow of Chartered Accountants Australia and New Zealand. He was a Director/Councillor of the Royal Flying Doctor Service in Western Australia for 26 years, serving 8 years as Chairman before his retirement in 2017. He served 6 years as Western Operations representative on the National Board of the Australian Council of the Royal Flying Doctor Service of Australia. Mr Bassett was awarded a Member of the Order of Australia (AM) in the 2015 Australia Day Honours. Interest in Shares and Options 1,100,000 ordinary shares and 1,100,000 options in Auris Minerals Ltd. Listed company directorships in last three years Currently a Non-Executive Director of Pointerra Limited (ASX: 3DP), Auris Minerals Ltd (ASX: AUR), Pharmaust Ltd (ASX: PAA), Tennant Minerals Ltd (ASX: TMS) and Bulletin Resources Ltd (ASX: BNR). Previously a Non- Executive Director of Zeotech Ltd and Yowie Group Ltd. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 4 | P a g e DIRECTORS’ REPORT Craig Hall Non-Executive Director Experience and expertise Mr Craig Hall is an experienced geologist with over 30 years of minerals industry experience in exploration, development and production roles in a range of commodities, principally precious and base metals. He has held a variety of senior positions with mid-tier and junior sector resource companies within Australia and overseas. He has previously consulted to the minerals industry providing high quality exploration outcomes, on-site mining support, expert reporting, project valuations and strategic advice to through an association with a well-respected Western companies Australian resource consultancy. Interest in Shares and Options Nil Listed company directorships in last three years Mr Hall is currently a Non-Executive Director of Horseshoe Metals Ltd (ASX: HOR). Previously a Non-Executive Director of Eclipse Metals Ltd, Target Energy Ltd, Redbank Copper Ltd and Scorpion Minerals Ltd (ASX: SCN). Mike Hendriks Managing Director Experience and expertise Mr Hendriks has gained extensive experience in the financial services sector in various roles in investment banking, accounting and stockbroking industries. He also has extensive management skills gained through various roles as a company director and secretary holding executive and non-executive directorships and senior positions of ASX listed and private companies in the industrial and resource sectors. Mr Hendriks graduated from Curtin University with a BBus, he is a Chartered Accountant and member of the Australian Institute of Company Directors. Interest in Shares and Options 500,000 ordinary shares and 500,000 options in Auris Minerals Ltd. Listed company directorships in last three years Previously Non-Executive Director and Company Secretary of Vector Resources Limited (ASX: VEC) which is currently in liquidation. Company Secretary Mr Chris Achurch holds the position of Company Secretary, having been appointed on 20 November 2020. Mr Achurch spent 10 years in public practice in the Audit and Assurance division with RSM Australia, based in Perth, Dallas and New York and 2.5 years as CFO and Joint Company Secretary at Kalium Lakes Limited. Mr Achurch provides company secretarial, corporate advisory and general consulting services to a number of ASX listed clients. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 5 | P a g e DIRECTORS’ REPORT 2. Corporate activity summary Fully underwritten Entitlement Issue raises $2.38M In November 2021, Auris advised that the fully underwritten pro-rata non-renounceable Options Entitlement Offer to raise approximately $2.38 million (see ASX release dated 19 October 2021) had closed. Under the terms of the Entitlement Offer, Eligible Shareholders were entitled to apply for one (1) new option at an issue price of $0.005 for every one (1) existing fully paid ordinary share held on the Record Date (New Option). The New Options are exercisable at $0.08 each on or before 30 November 2023. The Entitlement Issue was fully underwritten by Lazarus Corporate Finance Pty Ltd (Underwriter). The Company received applications under the Entitlement Offer (including additional applications) totalling 197,771,924 New Options amounting to total subscriptions of $988,859.86. The Shortfall pursuant to the Entitlement Offer was 278,854,033 New Options, raising $1,394,270.17 before costs and was issued in accordance with the Underwriting Agreement between the Company and Lazarus Corporate Finance Pty, as described in the Prospectus lodged by the Company on 19 October 2021. The Board thanks all shareholders and the Lead Manager and Underwriter, Lazarus Corporate Finance for their continued support of the Company and its exploration plans. Cash Position At 30 June 2022 Auris maintained a healthy cash position of A$3.57M, allowing the Company to advance its Bryah Basin exploration strategy, whilst also assessing new strategic project opportunities that align with the Company’s current focus on gold and copper exploration. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 6 | P a g e DIRECTORS’ REPORT 3. Directors’ Meetings Formal meetings of the directors of the Company during the financial year are tabled as follows: Director Neville Bassett Craig Hall Mike Hendriks Meetings eligible to attend Meetings attended 7 7 7 7 7 7 4. Principal Activities and Review of Operations Review of Financial Condition The Group recorded a loss of $1,591,090 for the year ended 30 June 2022 (2021: loss of $2,312,605). The loss includes $828,281 (2021: $1,558,554) impairment adjustment for exploration and evaluation expenditure. As at 30 June 2022, the Group had net working capital of $3,502,991 (2021: $3,098,605). The Group’s net asset position was $24,654,669 (2021: $24,059,689). Exploration Activity and Highlights Auris Minerals Limited (Auris) is primarily exploring for high grade gold and copper-gold deposits in the highly prospective Bryah Basin region of Western Australia. Significant exploration activities during the 2022 financial year included the following: • Continued exploration by Sandfire within Morck Well, Cashman and Cheroona JV’s comprising 52 Air Core holes for 3,285 metres, 2 RC holes for 327metres, 2 Diamond holes for 1,918.9 metres, DHEM surveys and moving loop EM surveys. • Significant gold mineralised trend requiring further follow up drilling at the Durack East prospects within the Feather Cap project, (81 Air Core drill holes for 6,632m and 4 RC holes for 709m). • Significant gold and copper intersections within Air core drilling completed at the Forrest Project. Highlighting the period were the return of significant copper results from follow up RC drilling and visual copper mineralisation within diamond drilling completed by Sandfire within the Morck Well JV. Exploration Portfolio Auris is exploring for base metals and gold in the Bryah Basin of Western Australia. Auris has consolidated a tenement portfolio of 1,385km², which is divided into eight well-defined project areas: Forrest, Cashman, Cheroona, Doolgunna, Morck Well, Feather Cap, Milgun and Horseshoe Well, (Figure 1). In February 2018, Auris entered a Farm-in Agreement with Sandfire in relation to the Morck Well and Doolgunna Projects which covers ~430km² (the Morck Well JV). During September 2019, Auris entered into a Farm-in with Sandfire in relation to the Cashman Project tenements, E51/1053 and E51/1120, (the Cashman JV). On 4 February 2020 Auris and Northern Star Resources Limited (NST) entered into a Farm-in with Sandfire in relation to the Cheroona Project tenements, E51/1391, E51/1837 and E51/1838, (the Cheroona JV). Sandfire has the right to earn a 70% interest in each of above projects upon completion of a Feasibility Study on a discovery of not less than 50,000t contained copper (or metal equivalent) on the project. Auris manages exploration on all other tenements, including those that are subject to arrangements with third parties. Sandfire provided formal notice of their withdrawal from the Cheroona and Cashman farm in agreements, effective 4 August 2022. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 7 | P a g e DIRECTORS’ REPORT Figure 1: Auris' copper-gold exploration tenement portfolio, with Sandfire (SFR), Northern Star (NST), Westgold (WGX), Fe Ltd and Gateway JV areas indicated Notes: 1. The Forrest Project tenements E52/1659 and E52/1671 have the following outside interests: • Auris 80%; Westgold Resources Ltd 20% (ASX:WGX). Westgold Resources Ltd interest is free carried until a Decision to Mine • Westgold Resources Ltd own the gold rights over the Auris interest. 2. The Forrest Project tenement P52/1493 have the following outside interests: • Westgold Resources Ltd own the gold rights over the Auris interest. 3. The Forrest Project tenements P52/1494-1496 have the following outside interests: • Auris 80%; Fe Ltd 20% (ASX:FEL). Fe Ltd interest is free carried until a Decision to Mine 4. The Cheroona Project tenements E51/1391, E51/1837-38 have the following outside interests: • Auris 70%; Northern Star Resources Ltd 30% (ASX:NST) 5. The Horseshoe Well Project tenement E52/3291 has the following outside interests: • Auris 85%; Gateway Projects WA Pty Ltd (formerly OMNI Projects Pty Ltd) 15% (Gateway Projects free carried until a Decision to Mine) 6. The Milgun Project tenement E52/3248 has the following outside interests: • Auris 85%; Gateway Projects WA Pty Ltd (formerly OMNI Projects Pty Ltd) 15% (Gateway Projects free carried until a Decision to Mine) 7. The Morck Well Project tenements E51/1033, E52/1613 and E52/1672 have the following outside interests: a. Auris 80%; Fe Ltd 20% (ASX:FEL). Fe Ltd interest is free carried until a Decision to Mine Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 8 | P a g e DIRECTORS’ REPORT Exploration Strategy Auris’ exploration strategy is summarised as follows: • Focus attention on unlocking the value of the current tenement package in the Bryah Basin; • Assess new strategic project opportunities as they arise; • Target multiple Au and Cu-Au deposits; • Develop the best regional geological control possible (to provide context), by means of published maps, airborne geophysics (magnetics,radiometrics & EM) , ground gravity, lithogeochemical analysis and field mapping; • Commitment to drill exploration targets as soon as possible after definition; • Sell, JV or relinquish tenements that no longer fit with the company’s exploration strategy; • Adhere to highest technical standards in all activities. Review of Operations Auris Managed Projects FEATHER CAP Project Summary The Feather Cap Project is 100% Auris and includes tenement E52/1910 which hosts both the Feather Cap and Durack East gold prospects. Drilling A total of 76 Air Core drill holes were completed for 6,151 metres within the Feather Cap Project, at the Durack East Prospect (Refer ASX Announcement 29 September 2021). Drilling was designed to evaluate the potential for strike extensions to significant gold mineralisation highlighted by previous drilling along strike to the east and west. Significant results returned from the drilling programme included (see ASX releases dated 13 October 2021 and 7 February 2022): • 8m @ 4.49g/t Au from 87m, including 2m @ 14.8g/t Au from 87m (DEAC0089) • 5m @ 2.21g.t Au from 87m (DEAC0075) The high-grade intercepts within DEAC0089 of 8m @ 4.49g/t Au from 87m including 2m @ 14.8g/t Au from 87m and DEAC0075 of 5m @ 2.21g/t Au from 87m are associated with quartz veining within mafic lithologies of the Narracoota Formation, to the south of an interpreted contact with sediments of the Ravelstone Formation. A total of 4 holes for 709m (DERC0001 – DERC0004, Refer ASX Announcement 25 January 2022), were completed to further evaluate high-grade gold mineralisation received within DEAC0075 and DEAC0089 from previously completed Air Core drilling. Significant results returned from this maiden RC drilling programme include 1m @ 2.37g/t Au from 32m within DERC0002 and 5m @ 1.87g/t Au from 30m within DERC0003 (5m composite). An additional five holes (DEAC0104-0108) for 481m were completed at the Durack East Gold Prospect within the Feather Cap Project, (Refer ASX Announcement 24 March 2022) to further understand the controls of the mineralisation at the Durack East prospect. All significant results returned from the recent Air Core drilling at the Durack East Prospect are tabulated below in Table 1. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 9 | P a g e DIRECTORS’ REPORT Table 1: Durack East Prospect Significant Air Core Drilling Intersections Hole ID DEAC0105 DEAC0106 DEAC0108 From (m) 65 92 100 30 To (m) 70 93 105 35 Interval (m) 5 1 5 5 Intersection Cu Au Zn Pb (ppm) (ppm) (ppm) (ppm) 69.8 154.5 71.9 80.5 0.55 0.67 0.60 0.18 1 4.8 3.6 4 78 88 67 7 The anomalous gold result within DEAC0105 of 5m @ 0.55g/t Au from 65m is interpreted to be located 20m up dip of the high-grade mineralisation intersected within DEAC0089 (8m @ 4.49g/t Au from 87m, including 2m @ 14.8g/t Au from 87m), within mafic lower saprolite of the Narracoota Formation. The significant intersection of 5m @ 0.60g/t Au from 100m within DEAC0106 is located approximately 10m down dip from the significant intersection within DEAC0075 (5m @ 2.21g.t Au from 87m) within mafic lower saprolite of the Narracoota Formation. Figure 2 – Durack East Geology and Drilling From the drilling completed to date at the Durack East Prospect it is interpreted that the gold mineralised zones are sub vertical to steeply southerly dipping. The results from the recent RC and Air Core drilling completed by Auris has indicated that the high-grade mineralisation within the previous Air Core Drilling and historical RAB drilling are potentially a result of gold enrichment along the mineralised structures at favourable regolith boundaries. Auris is currently considering additional infill Air Core drilling to further evaluate the mineralised trend for high- grade gold mineralisation. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 10 | P a g e DIRECTORS’ REPORT FORREST Project Summary The Forrest Project includes tenements E52/1659 and E52/1671, which host the Wodger and Forrest deposits respectively and fall under an agreement with Westgold Resources Limited (“WGX”) whereby WGX own all gold rights and a 20% free carried interest until a decision to mine for all copper rights. The Forrest Copper Project contains an existing JORC Resource of 2.4 Mt @ 1.7% Cu for 41,500t copper metal. Air Core Drilling A total of 60 Air Core drill holes were completed (FTAC0001-0060, Refer ASX Announcement 24 March 2022) for approximately 4,186m to further evaluate select regional targets located outside of the existing JORC resource, (Refer ASX Announcement 2 July 2021). Regional targets tested within the Forrest Copper Project comprised: • Significant copper/gold drill intercepts within previous Air Core drilling, • Chargeability/conductivity targets identified by previously completed IP surveying; and/or • Structural targets with similarities to the DeGrussa Copper Deposit. All significant results returned from the recent Air Core drilling at the Forrest Project are tabulated below in Table 2, (Refer ASX Announcement 11 May 2022). Table 2: Forrest Project Significant Copper/Gold Air Core Drilling Intersections Hole ID FTAC0021 FTAC0037 FTAC0038 FTAC0047 FTAC0050 FTAC0051 FTAC0053 FTAC0054 FTAC0054 From (m) To (m) Interval (m) Intersection Cu Au Zn Pb (ppm) (ppm) (ppm) (ppm) 45 55 36 25 40 10 34 50 10 20 30 50 60 45 30 46 15 40 55 15 25 35 5 5 9 5 6 5 6 5 5 5 5 1800 1160 1077 12.8 330.5 294 1563 18 131 51.2 131 <0.01 <0.01 <0.01 0.17 0.34 0.15 0.05 0.144 0.56 0.626 0.202 34.3 52.9 9.5 5.7 25.6 6 45 3.1 5.9 4 4.9 221 173 91 163 86 22 230 103 85 96 95 An encouraging copper result of 5m @ 0.18% Cu from 45m was returned within FTAC0021 (refer Figure 3), north of the Forrest Resource. The drill hole was part of the drill line designed to initially evaluate IP Target 2, which is located 800m to the north of the Forrest Deposit. The copper mineralisation within FTAC0021 is associated with sediments of the Robinson Range Formation and remains open to the north and south for 500 metres. Additional encouraging copper results were returned within drill holes, FTAC0037 and FTAC0038, comprising 5m @ 0.12% Cu from 55m and 9m @ 0.11% Cu from 36m respectively. Both copper intersections are also associated with Robinson Range Formation sediments, located 200m along strike to the south of previously returned mineralisation within drilling of 8m @ 0.20% Cu from 45m, (WRAC182). Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 11 | P a g e DIRECTORS’ REPORT Significant gold results of 5m @ 0.56g/t Au from 10m and 5m @ 0.63g/t Au from 20m were returned within FTAC0054, located 200m south of previous Air Core drilling anomalism of 4m @ 0.49g/t Au and 0.81% Cu from 16m within WRAC155. The above gold anomalism is located within E52/1659 where Westgold Resources have 100% of the gold rights. The gold anomalism however remains open to the southeast along strike for approximately 1km, potentially trending into tenure (P52/1495) which AUR have an 80% interest in the gold rights. An anomalous copper result of 6m @ 0.16% Cu from 34m was intersected 100m to the west of WRAC155. within FTAC0051. Results from the completed Air Core drilling highlight a new copper/gold target within the Forrest Project comprising the Robinson Range Formation sediments and their contact with the underlying Ravelstone Formation. To date the Robinson Range Formation and the associated contact with has been sporadically tested along the 11km of strike which trends through the project. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 12 | P a g e DIRECTORS’ REPORT Figure 3 - Forrest Project Summary Geology, Chargeability Model Slice (350mRL) and Drilling, with significant 2022 results highlighted in red. (Refer ASX announcement 5 December 2018 – WRAC155 and WRAC182 results) Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 13 | P a g e DIRECTORS’ REPORT Morck Well JV (Managed by Sandfire Resources Ltd) Project Summary In February 2018, Auris entered a Farm-in Agreement with SFR in relation to the Morck Well and Doolgunna Projects which covers ~430km². The Morck Well and Doolgunna Projects are strategically located 22km to the south-west and 4km to the southeast respectively, of Sandfire’s DeGrussa Copper Mine in Western Australia. The Morck Well project is also located 8km along strike from Sandfire’s Old Highway gold deposit with comparable high-grade gold mineralisation being intersected associated within similar geology within completed regional Air Core drilling. Air Core Drilling Regional Air Core drilling was completed within the Doolgunna Project, with a total of 37 holes (MWAC4205 – MWAC4241) for 2,165 metres undertaken. The completed drilling was designed to gain a better understanding of the lithologies composing the prospect area and as infill drilling to an RC drill programme carried out by Auris in 2011. Results were received for a total of 104 Air Core drill holes (MWAC4138 – MWAC4241) completed within the Doolgunna Project. All results from the completed drill programme have now been received. A significant composite gold intersection of 5m @ 3.08g/t Au from 20m was returned from MWAC4225, (Refer ASX Announcement 15 October 2021). This intersection is located approximately 100m along strike from the Salmon Prospect. All remaining results were also received from the regional Air Core drilling completed within the Morck Well Project, comprising 146 holes (MWAC3248 – MWAC3259. MWAC3590 – MWAC3600, MWAC3626, MWAC4016 – MWAC4137). A single significant result of 1m @ 0.11% Cu from 155m within MWAC4021 , (Refer ASX Announcement 15 October 2021) was returned. A further 15 holes (MWAC4242 – MWAC4256, Refer ASX Announcement 24 January 2021) for 1,420 metres were completed at the Morck Well Project, on a 400x100m infill pattern to provide high quality litho-geochemical data and key geological information to delineate the upper Narracoota stratigraphy, known to be host to VMS- style mineralisation. No significant results were received from this drilling. RC Drilling Two RC drill holes (MWRC0051 and MWRC0052) for 327m were completed to further evaluate interpreted supergene enrichment intersected at the base of complete oxidation within previous air core drilling (Refer ASX Announcements 23 September 2020 and 20 January 2021) including: • 10m @ 0.42% Cu from 40m incl 5m @ 0.64% Cu from 40m - MWAC2870 • 15m at 0.46% Cu from 55m incl 5m at 0.89% Cu from 65m – MWAC3356 MWRC0051 was abandoned after 34m and the hole re-designed, MWRC00052, intersected significant copper, zinc and lead mineralisation (Table 1, Refer ASX Announcement 19 April 2022) and 2m of trace native copper between 118-120m. The drill hole encountered an extended weathered profile, intersecting weathered upper saprolite down to 136m, interpreted to be associated with preferential weathering along a structure. A follow up RC drill programme is being designed to test the strike continuity of the supergene mineralisation observed and to test the potential for mineralisation at depth. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 14 | P a g e DIRECTORS’ REPORT Table 3. Significant RC Drill Results - Morck Well JV AC Hole ID From (m) MWRC0052 including including 34 44 87 103 To (m) 73 46 120 114 Interval (m) 38 2 33 11 Intersection Cu (ppm) Au (ppm) 577 1,205 740 1,215 <0.01 <0.01 <0.01 <0.01 Zn (ppm) 2,528 4,250 2,502 3,455 Pb (ppm) 1,707 5,175 240 202 Diamond Drilling The diamond drill rig was unable to re-enter MWRC0052 to complete a diamond tail due to adverse ground conditions. Figure 4. Drilling Summary Plan - Morck Well Project Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 15 | P a g e DIRECTORS’ REPORT Figure 5. Drilling Summary Plan - Morck Well Project One diamond drill hole (MWDD0006) was completed at the Citra prospect, to a depth of 1,141m, (Refer ASX Announcement 21 July 2022). The drill hole was designed to test an interpreted rift and transform structure intersection proximal to mapped exhalative sediments. Encouragingly, the hole intersected several trace mineralised horizons containing minor bornite, chalcopyrite and chalcocite. - - - 808-809.5m - Trace/minor bornite and chalcopyrite in exhalative jasper 812-840m - Trace/minor disseminated chalcopyrite along bedding planes 1,038.8-1,041m – Trace/minor chalcocite blebs The hole was successfully grouted, PVC was run for the full length of the hole and is now awaiting DHEM. All assay results from the sampling of the drill hole are pending. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 16 | P a g e DIRECTORS’ REPORT Figure 6 - Drilling Summary Plan – Citra Prospect Figures 1 and 2 Notes - Morck Well Copper – Gold Prospect –SFR ASX announcement 6 June 2018 Jacques Gold Prospect –RNI ASX announcement 16 April 2013 Frenchy’s Gold Prospect – AUR ASX announcement 16 April 2019 Durack Gold Resource – refer WGX announcement 4 September 2017 SFR (MWAC/MWRC/MWDD prefix) results refer ASX announcements 30 March 2020, 20 April 2020, 17 July 2020, 23 October 2020, 20 January 2021, 20 April 2021 and 9 June 2021 Durack East Prospect - Refer ASX announcements 28 October 2020, 28 January 2021, 13 October 2021), 2 November 2021 and 17 December 2021 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 17 | P a g e DIRECTORS’ REPORT Cashman JV (Managed by Sandfire Resources Ltd until 4 August 2022) Project Summary In September 2019, Auris entered into a farm-in agreement with Sandfire to advance exploration at the Company’s Cashman Project located in the Bryah Basin of Western Australia. Under the agreement Sandfire were until 4 August 2022 sole funding exploration until a Feasibility Study is completed on a discovery of >50,000t Copper or metal equivalent to earn a 70% interest. Air Core Drilling Results were received for the programme of fifty Air Core drill holes (CHAC1860 – CHAC1909) for 1,663m designed to infill existing 100m-spaced drill collars, specifically targeting prospective sediment horizons of the Karalundi Formation to provide additional geochemical data in the area proximal to the Orient gossan. A single significant result of 5m @ 0.60g/t Au from 25m was returned within CHAC1885 (Refer ASX Announcement 15 October 2021). This intersection is located 400m along strike to the east from previous intersected mineralisation of 1m @ 9.72g/t Au from 40m (CHAC0780). Diamond Drilling Results were received from the two diamond tails (CHRC0007 and OTRC007) completed at the Orient prospect during the June 2021 quarter. A maximum significant copper result of 1.18m @ 0.83% Cu from 417.3m including 0.68m @ 1.28% Cu from 417.8m (OTRC007) has been returned (Refer ASX Announcement 15 October 2021). All significant intersections returned from Diamond drilling within the Cashman JV are reported in Table 4. Table 4. Significant intervals returned from Diamond Drilling - Cashman JV Hole ID From (m) To (m) CHRC0007 OTRC007 including 450 417.3 417.8 624.77 631.2 451.34 418.48 418.48 625.7 632.2 Interval (m) 1.34 1.18 0.68 0.93 1.00 Intersection Zn Au (ppm) (ppm) 92 0.021 457 0.05 513 0.08 250 0.007 119 0.019 Cu (ppm) 1290 8338 12800 1380 1420 Pb (ppm) 30.5 75 77 39 4 DHEM surveying of CHRC0007 was completed to a depth of 370m, however, a blockage at this depth meant the bottom half of the hole could not be surveyed. A new DHEM survey will be run once the hole is cleared in the next reporting period. Structural interpretation of the project area has led to areas of interest which may be tested by additional RC drilling in the future. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 18 | P a g e DIRECTORS’ REPORT Cheroona JV (Sandfire earning 70% Interest until 4 August 2022) Project Summary On 4 February 2020 Auris and Northern Star Resources Limited (NST) entered into a Farm-in agreement with Sandfire in relation to tenements, E51/1391, E51/1837 and E51/1838, to advance exploration at the Cheroona Project located in the Bryah Basin of Western Australia. Under the agreement Sandfire were until 4 August 2022 sole funding exploration until a Feasibility Study is completed on a discovery of >50,000t Copper or metal equivalent to earn a 70% interest. Diamond Drilling A single diamond hole for 840.9m was completed, comprising a 448m RC precollar and 392.9m diamond tail. The drill hole was designed to test an airborne EM anomaly, interpreted to be a fractionated dolerite or a jasperoidal chert and the potential for the prospective Karalundi Formation below this anomaly and the Narracoota Formation at depth. All results were returned from the RC precollar and diamond drill tail completed last quarter, (Refer ASX Announcement 19 April 2022). No significant results were received. Figure 7. Drilling Summary Plan – Cashman / Cheroona JV’s Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 19 | P a g e DIRECTORS’ REPORT Corporate 5. Significant Changes in the State of Affairs In the opinion of the directors there were no significant changes in the state of affairs of the Group that occurred during the financial year, other than those described in this report under ‘Principal activities and review of operations. 6. Environmental Regulations The Group’s exploration activities are subject to various environmental regulations. The Board is responsible for the regular monitoring of environmental exposures and compliance with environmental regulations. The Group is committed to achieving a high standard of environmental performance and conducts its activities in a professional and environmentally conscious manner and in accordance with applicable laws and permit requirements. The Board believes that the Group has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the Group. The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduces a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act will have no effect on the Company for the current financial year. The directors will reassess this position as and when the need arises. 7. Dividends The directors have not recommended the declaration of a dividend. No dividends were paid or declared during the current or prior period. 8. Events Subsequent to Reporting Date No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years, other than the following: - Sandfire Resources Ltd provided formal notice of their withdrawal from the Cheroona and Cashman farm in agreements, effective 4 August 2022. Sandfire have compiled all reports and data and have handed over to Auris. Auris are completing a detailed review of all project data, to determine next steps and any future work programmes. - The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has had no significant impact on the Group up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation continues to develop and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. 9. Likely Developments Likely developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report, as the inclusion of such information is likely to result in unreasonable prejudice to the Group. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 20 | P a g e DIRECTORS’ REPORT 10. Share Options Unissued shares under option At the date of this report unissued ordinary shares of the Company under option are: Expiry date Exercise Price No. of options 30 Nov 2023 $0.08 476,625,957 Listed The options do not entitle the holder to participate in any share issue of the Company or any other body corporate. Other shares issued since the end of the financial year There have been no shares issued since the end of the financial year. 11. Remuneration Report - Audited Principles of compensation Remuneration is referred to as compensation throughout this report. Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel comprise the directors of the Group. Compensation levels for key management personnel of the Group are competitively set to attract and retain appropriately qualified and experienced directors and executives. The Board may obtain independent advice on the appropriateness of compensation packages of the Group given trends in comparative companies both locally and internationally and the objectives of the Group’s compensation strategy. The compensation structures explained below are designed to attract suitably qualified candidates, reward the achievement of strategic objectives, and achieve the broader outcome of creation of value for shareholders. Compensation packages include a mix of fixed compensation, equity-based compensation, performance-based compensation as well as employer contributions to superannuation funds. Shares and options may only be issued to directors subject to approval by shareholders in general meeting. Fixed compensation Fixed compensation consists of base compensation as well as employer contributions to superannuation funds. Compensation levels are reviewed annually by the Board through a process that considers individual and overall performance of the Group. In addition, from time to time external consultants provide analysis and advice to ensure the directors’ and senior executives’ compensation is competitive in the market place. The Group did not employ the services of any remuneration consultants during the financial year ended 30 June 2022. Performance linked compensation (Short-term incentive bonus) In considering the Group’s strategic objectives the Board may integrate certain performance linked short-term incentives (STIs) into key management personnel compensation packages. Performance linked compensation primarily include STIs and are considered by the Board as and when projects are delivered and are entirely at the Board’s discretion. The measures chosen are designed to align the individual’s reward to the achievement of the Group’s strategies and goals and to reward key management personnel for meeting or exceeding their personal objectives. No bonuses were paid during the financial year. Equity based compensation (Long-term incentive bonus) The Board provides equity-based long-term incentives (LTIs) to promote continuity of employment and to provide additional incentive to key management personnel to increase shareholder wealth. LTIs are provided as options and rights over ordinary shares of the Company and are provided to key management personnel based on their Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 21 | P a g e DIRECTORS’ REPORT level of seniority and position within the Group. Options and rights may only be issued to directors subject to approval by shareholders in general meeting. Key Management Personnel Incentives Short-term and long-term incentive structure and consequences of performance on shareholder wealth have been considered. However, given the Group’s principal activity during the course of the financial year consisted of exploration and evaluation, the Board has given more significance to service criteria instead of market related criteria in setting the Group’s incentive schemes. Accordingly, at this stage the Board does not consider the Company’s earnings or earning measures to be an appropriate key performance indicator. The issue of options or rights as part of the remuneration package of directors is an established practice for listed exploration companies and has the benefit of conserving cash whilst appropriately rewarding the directors. In considering the relationship between the Group’s remuneration policy and the consequences for the Company’s shareholder wealth, changes in share price are analysed. The Group’s respective earnings and share price for the periods ended 30 June 2018 to 30 June 2022 are as follows: Net loss Closing ASX share price 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 30 Jun 22 (1,317,036) (1,845,664) (422,531) (2,312,605) (1,591,090) $0.068 $0.015 $0.048 $0.048 $0.017 In the opinion of the Board, these earnings, as listed above, are largely irrelevant for assessing the Group’s respective performance during the exploration and evaluation phases. Service contracts i) Non-Executive Chair Director and consulting services are provided by Mr Bassett via an associated company on normal commercial terms and conditions. The Non-Executive Chair rate was set at $45,000 per annum with effect from 1 February 2017. Additional fees may be payable to Mr Bassett for any additional duties performed outside his role as Non-Executive Chair at a rate of $1,500 per day. ii) Non-Executive Directors Non-Executive Directors are currently paid at a rate of $30,000 per annum on a continuous service arrangement requiring at least one month’s notice for termination. Total compensation for all Non-Executive Directors is set based on advice, from time to time, from external advisors with reference to fees paid to other Non-Executive Directors of comparable companies. The Group did not employ the services of any remuneration consultants during the financial year ended 30 June 2022. Non-Executive Directors’ fees are presently limited to $250,000 per annum, excluding director services charged under management or consulting contracts. Directors’ fees cover all main Board activities. The Board has no established retirement or redundancy schemes in relation to Non-Executive Directors. iii) Managing Director The Managing Director services are provided by Mr Hendriks via an associated company on normal commercial terms and conditions. At the reporting date, the Managing Director’s salary was $180,000 per annum inclusive of superannuation, subject to annual review. The service contract, for no fixed term , may be terminated by either party providing the other with three (3) months notice in writing. On termination, Mr Hendriks will be entitled to three (3) months salary if removal from the position occurs for any reason other than a serious breach of contract. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 22 | P a g e DIRECTORS’ REPORT Key Management Personnel remuneration Details of the nature and amount of each major element of remuneration are as follows: Key Management Personnel (KMP) Short term salary and fees Super- annuation benefits Termination benefits Equity settled share based payments Total Proportion of remuneration performance related $ $ $ $ $ % Value of options/rights as proportion of remuneration % Non-executive chair N Bassett (i) 2022 2021 45,000 40,500 Managing director / Chief operating officer 2022 M Hendriks (ii) 2021 Non-executive director C Hall (iii) R Martin (iv) Total 2022 2021 2022 2021 2022 2021 180,000 143,490 27,273 24,658 - 8,667 252,273 217,315 - - - - 2,727 2,342 - - 2,727 2,342 - - - - - - - - - - - - 45,000 40,500 - 180,000 - 143,490 - - - - 30,000 27,000 - 8,667 - 255,000 - 219,657 - - - - - - - - - - - - - - - - - - - - (i) Neville Bassett was appointed Non-Executive Chair on 20 April 2018. (ii) Mike Hendriks was appointed as COO on 6 July 2018 on a consultancy arrangement. On 20 November 2020 Mr Hendriks resigned as COO and Company Secretary and was appointed as Managing Director. (iii) Craig Hall was appointed as Non-Executive Director on 1 August 2018 as the Investmet representative. (iv) Robert Martin was appointed 2 November 2016; Resigned 20 November 2020. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 23 | P a g e DIRECTORS’ REPORT Equity instruments Options holdings Options refer to options over ordinary shares of Auris and are exercisable on a one-for-one basis. Details of options over ordinary shares in Auris that were granted and vested as compensation to each key management person are as follows: Balance at 1 July 21 or date of appointment Issue date Granted as remuneration Exercised Lapsed Other changes Balance at 30 June 22 or date of resignation No. Value No. No. No. Non-executive Chairman N Bassett - Managing Director / Chief Operating Officer M Hendriks Non-executive Directors C Hall - - - - - - - - - - - (i) Participation by Director in the pro-rata non-renounceable options offer (Note 13). - - - - (i) 1,100,000 1,100,000 - - (i) 500,000 500,000 - - No terms of equity-settled share-based payment transactions (including options and rights granted as compensation to a key management person) have been altered or modified by the issuing entity during the reporting period or the prior period. During the reporting period, no shares were issued on exercise of options previously granted as compensation and no options were forfeited by key management persons during the reporting period. Performance rights holdings Rights refer to performance rights held over ordinary shares of the Company and are exercisable on a one-for- one basis when vesting conditions are met. No performance rights were granted during the financial year or held at the report date. Share holdings No shares were granted to key management personnel during the reporting period as compensation in 2022. The movement during the reporting period in the number of ordinary shares in Auris Minerals Limited held directly, indirectly or beneficially, by each key management person, including their related parties, is as follows: Balance at 1 July 21 or date of appointment Acquired during the period Exercise of options (i) Other changes Balance at 30 June 22 or date of resignation Non-Executive Chairman N Bassett 1,100,000 Managing Director / Chief Operating Officer M Hendriks Non-Executive Directors C Hall 500,000 - Other Equity-related KMP Transactions - - - - - - - - - 1,100,000 500,000 - There have been no other transactions involving equity instruments apart from those described in the tables above relating to options, rights, and shareholdings. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 24 | P a g e DIRECTORS’ REPORT Other Transactions with KMP and / or their Related Parties There were no other transactions conducted with the Group and KMP or their related parties, apart from those disclosed above. All transactions were conducted in accordance with normal employee, customer or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons. END OF AUDITED SECTION Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 25 | P a g e DIRECTORS’ REPORT 12. Proceeding on Behalf of 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 purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not party to any such proceedings during the year. 13. Indemnification and Insurance of Officers and Auditors Indemnification The Group indemnifies each of its directors and company secretary. The Group indemnifies each director or officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability arises out of conduct involving lack of good faith, and in defending legal and administrative proceedings and applications for such proceedings. The Group must use its best endeavours to insure a director or officer against any liability, which does not arise out of a conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Group must also use its best endeavour to insure a director or officer against liability for costs and expenses incurred in defending proceedings whether civil or criminal. The Group has not entered into any agreement with its current auditors indemnifying them against any claims by third parties arising from their report on the financial report. The directors of the Company are not aware of any proceedings or claim brought against Auris Minerals Ltd or its controlled entities as at the date of this report. Insurance The Group holds cover in respect of directors’ and officers’ liability and legal expenses’ insurance, for current and former directors and officers of the Group. 14. Non-audit Services During the year Elderton Audit Pty Ltd, the Company’s auditor, did not perform any services other than their audit services. In the event that non-audit services are provided by Elderton Audit Pty Ltd, the Board has established certain procedures to ensure that the provision of non-audit services are compatible with, and do not compromise, the auditor independence requirements of the Corporations Act 2001. These procedures include: § § non-audit services will be subject to the corporate governance procedures adopted by the Group and will be reviewed by the Group to ensure they do not impact the integrity and objectivity of the auditor; and ensuring non-audit services do not involve reviewing or auditing the auditor’s own work, acting in a management or decision making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and rewards. Details of the amounts paid to the auditor of the Company and their related practices for audit services provided during the year are set out below. Audit and review of financial reports 2022 $ 26,421 26,421 2021 $ 28,700 28,700 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 26 | P a g e DIRECTORS’ REPORT 15. Competent Person’s Statement Competent Person’s Statement Information in this report that relates to exploration results is based on and fairly represents information and supporting documentation prepared and compiled by Mr Matthew Svensson, who is a Member of the Australian Institute of Geoscientists. Mr Svensson is the Exploration Manager for Auris Minerals Limited. Mr Svensson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Svensson consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. No New Information Except where explicitly stated, this report contains references to prior exploration results and Mineral Resource estimates, all of which have been cross referenced to previous market reports made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the results and/or estimates in the relevant market report continue to apply and have not materially changed. Forward-Looking Statements This report has been prepared by Auris Minerals Limited. This document contains background information about Auris Minerals Limited and its related entities current at the date of this report. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this report. This report is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This report may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted. This document does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Auris Minerals Limited. Actual values, results, outcomes or events may be materially different to those expressed or implied in this report. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this report speak only at the date of issue of this report. Subject to any continuing obligations under applicable law and ASX Listing Rules, Auris Minerals Limited does not undertake any obligation to update or revise any information or any of the forward-looking statements in this document or any changes in events, conditions or circumstances on which any such forward-looking statement is based. 16. Corporate Governance Statement The Company’s 2022 Corporate Governance Statement has been released as a separate document and is located on the Company’s website at www.aurisminerals.com.au Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 27 | P a g e DIRECTORS’ REPORT 17. Lead Auditor’s Independence Declaration The lead auditor’s independence declaration is set out on page 35 and forms part of the directors’ report for the financial year ended 30 June 2022. This report is made with a resolution of the directors. NEVILLE BASSETT NON-EXECUTIVE CHAIR Dated at West Perth this 26th day of August 2022 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 28 | P a g e SCHEDULE OF MINING TENEMENTS Schedule of Mining Tenements as at 30 June 2022 Tenement Number Doolgunna Project Registered Holder Date Granted Note Area Graticular Blocks(bk) / Hectares (ha) Area Sq km E52/2438 Auris Minerals Limited 11/02/2010 7bk 21.68 1,7 Morck Well Project E51/1033 E51/1883 E52/1613 E52/1672 Auris Exploration Pty Ltd 80%; Jackson Minerals Pty Ltd 20% Auris Exploration Pty Ltd 100% Auris Exploration Pty Ltd 80% Jackson Minerals Pty Ltd 20% Auris Exploration Pty Ltd 80%; Jackson Minerals Pty Ltd 20% Feather Cap Project E52/1910 E52/2472 E52/3275 E52/3327 E52/3350 E52/3351 P52/1497 P52/1503 P52/1504 Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Auris Exploration Pty Ltd Cashman Project E51/1053 E51/1120 Auris Exploration Pty Ltd Auris Exploration Pty Ltd Cheroona Project E51/1391 E51/1837 E51/1838 Northern Star Resources Ltd Auris Exploration Pty Ltd 70% Northern Star Resources Ltd 30% Auris Exploration Pty Ltd 70% Northern Star Resources Ltd 30% Forrest Project E52/1659 E52/1671 P52/1493 P52/1494 P52/1495 Auris Exploration Pty Ltd 80% Aragon Resources Pty Ltd 20% Auris Exploration Pty Ltd 80% Aragon Resources Pty Ltd 20% Auris Exploration Pty Ltd Auris Exploration Pty Ltd 80% Jackson Minerals Pty Ltd 20% Auris Exploration Pty Ltd 80% Jackson Minerals Pty Ltd 20% Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 22/09/2005 53bk 161.84 3,7 02/08/2019 29/03/2006 4bk 30bk 12.21 92.77 7 3,7 22/09/2005 35bk 108.02 3,7 10/08/2006 19/11/2009 01/06/2016 15/10/2015 02/03/2016 02/03/2016 6/3/2015 6/3/2015 6/3/2015 22/09/2005 10/08/2006 11/11/2010 19/01/2018 41bk 2bk 2bk 2bk 3bk 2bk 155.90ha 172.86ha 191.81ha 35bk 40bk 21bk 3bk 124.21 6.1 4 6.1 6.1 9.2 6.1 1.56 1.73 1.92 105.26 122.46 64.82 9.2 7 7 7,9 7,9 19/01/2018 11bk 33.62 7,9 27/01/2004 13bk 34.09 5,8 23/11/2004 61bk 185.26 5,8 6/3/2015 6/3/2015 191.66ha 179.33ha 1.92 1.79 6/3/2015 181.09ha 1.81 5 2 2 29 | P a g e SCHEDULE OF MINING TENEMENTS Tenement Number Registered Holder Date Granted Area Area Note Graticular Blocks(bk) / Hectares (ha) 183.70ha Sq km 1.83 2 P52/1496 Auris Exploration Pty Ltd 80% 6/3/2015 Jackson Minerals Pty Ltd 20% Milgun Project E52/3248 Auris Exploration Pty Ltd 85% Omni Projects Pty Ltd 15% 31/03/2015 7bk 21.39 6 E52/3757 Auris Exploration Pty Ltd 7/1/2020 37bk 113.15 Horseshoe Well Project E52/3291 Auris Exploration Pty Ltd 85% 02/03/2016 13bk 24.45 6 E52/3166 Omni Projects Pty Ltd 15% Auris Exploration Pty Ltd 18/12/2014 20bk 103.92 Notes: Auris Exploration Pty Ltd (AE) is a wholly owned subsidiary of Auris Minerals Limited. 1. Ascidian Prospecting Pty Ltd hold a 1% gross revenue royalty from the sale of all minerals. 2. Peak Hill Sale Agreement: AE 80%, Jackson Minerals Pty Ltd 20% & free carried to a decision to mine. 3. PepinNini Robinson Range Pty Ltd (PRR) hold a 0.8% gross revenue royalty from the sale or disposal of iron ore. 4. PRR hold a 1.0% gross revenue royalty from the sale or disposal of iron ore. 5. Westgold Resources Limited owns gold mineral rights over the AE interest. 6. AE 85% beneficial interest, Omni Projects Pty Ltd 15% beneficial interest. 7. Sandfire Resources Limited – Earn-in Agreement with rights to earn 70% interest. 8. AE 80%, Westgold Resources Limited 20% & free carried to a decision to mine. 9. AE 70%, Northern Star Resources Ltd 30% beneficial interest. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 30 | P a g e ADDITIONAL SHAREHOLDER INFORMATION Shareholder Information The shareholder information set out below was applicable at 24 August 2022. A. Distribution of Holders of Equity Securities i) Analysis of numbers of shareholders by size of holding: Ordinary Shares (AUR) No. of shareholders Percentage of issued capital 156 92 180 580 253 1,261 0.01 0.06 0.31 4.84 94.79 100 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 Over 100,000 Total ii) Analysis of numbers of optionholders by size of holding: Options (AURO) No. of option holders Percentage of issued capital 9 9 19 80 129 246 0.00 0.01 0.03 0.84 99.12 100 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 Over 100,000 Total Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 31 | P a g e ADDITIONAL SHAREHOLDER INFORMATION B. Twenty Largest Holders of Quoted Equity Securities Fully Paid Ordinary Shares The names of the 20 largest holders of quoted ordinary shares (ASX:AUR) are listed below: Number of ordinary shares held Percentage of issued shares CITICORP NOMINEES PTY LIMITED INVESTMET LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED SANDFIRE RESOURCES LIMITED NITRO SUPER PTY LTD INVESTMET LIMITED MOTTE & BAILEY PTY LTD ALL STATES FINANCE PTY LIMITED HADES CORPORATION (WA) PTY LTD GOLDFIRE ENTERPRISES PTY LTD BNP PARIBAS NOMINEES PTY LTD BARCLAYS PERTH SELECT SEAFOODS PTY LTD CITYWEST CORP PTY LTD AJAVA HOLDINGS PTY LTD MOTTE & BAILEY PTY LTD BAYFERRY PTY LIMITED GENERAL & PRIVATE FUNDS MANAGEMENT PTY LTD GUINA GLOBAL INVESTMENTS PTY LIMITED GLENEAGLE SECURITIES NOMINEES PTY LIMITED MR ERIC GIRDLER 65,795,374 40,959,103 33,358,512 32,150,000 21,747,280 18,954,491 17,457,731 16,000,000 14,175,000 11,750,000 11,000,054 8,000,000 7,231,659 5,598,338 5,000,000 5,000,000 5,000,000 4,600,000 3,533,395 3,250,000 13.80 8.59 7.00 6.75 4.56 3.98 3.66 3.36 2.97 2.47 2.31 1.68 1.52 1.17 1.05 1.05 1.05 0.97 0.74 0.68 330,560,937 69.35 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 32 | P a g e ADDITIONAL SHAREHOLDER INFORMATION Options The names of the 20 largest holders of quoted options (ASX:AURO) are listed below: CITICORP NOMINEES PTY LIMITED MOTTE & BAILEY PTY LTD MATTHEW BURFORD SUPER FUND PTY LTD GOLDFIRE ENTERPRISES PTY LTD ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD ALL STATES FINANCE PTY LIMITED TRINITY DIRECT PTY LTD MR MARTIN MCCLEAVE MR ERIC GIRDLER E EQUITIES PTY LTD DOMAEVO PTY LTD EVELYN FAMILY BENEFICIARY PTY LTD PERTH SELECT SEAFOODS PTY LTD GOFFACAN PTY LTD GOFFACAN PTY LTD NETWEALTH INVESTMENTS LIMITED SUPERHERO SECURITIES LIMITED GENERAL & PRIVATE FUNDS MANAGEMENT PTY LTD PAKENHAM UPPER GENERAL PTY LTD THREE ZEBRAS PTY LTD Number of securities held 107,520,033 22,943,168 Percentage of issued securities 22.56 4.81 20,000,000 20,000,000 19,500,000 16,000,000 12,575,197 12,000,000 10,500,000 10,000,000 10,000,000 10,000,000 10,000,000 7,204,355 5,500,000 5,450,000 5,130,047 5,000,000 5,000,000 5,000,000 4.20 4.20 4.09 3.36 2.64 2.52 2.20 2.10 2.10 2.10 2.10 1.51 1.15 1.14 1.08 1.05 1.05 1.05 319,322,800 67.01 C. Substantial Holders As at 24 August 2022, the Company had received substantial shareholder notices from the following shareholders: Shareholder No. of shares % of issue SG Hiscock and Company Limited Goldfire Enterprises Pty Ltd and its related entities Sandfire Resources Limited Mr Michael George Fotios and his controlled entities 24,917,842 36,151,486 32,150,000 5.23% 7.58% 6.75% 74,438,594 15.62% Note: i) The above details may not reconcile to the information in the Twenty Largest Security Holders list as revised substantial shareholder notices had not been received by the Company as at 24 August 2022. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 33 | P a g e ADDITIONAL SHAREHOLDER INFORMATION D. Voting Rights At a general meeting of shareholders: (a) On a show of hands, each person who is a member or sole proxy has one vote. (b) On a poll, each shareholder is entitled to one vote for each fully paid share. E. On-market buy-back There is no on-market buy-back of the Company’s securities in progress. F.Unmarketable parcel holders There were 687 shareholders holding less than a marketable parcel of ordinary shares at 24 August 2022. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 34 | P a g e CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 Finance income Lease income Profit on disposal of assets Other income Administrative expenses Finance costs Exploration assets written off Loss before income tax Income tax benefit Loss from continuing operations 30 Jun 2022 30 Jun 2021 Note $ $ 10,228 8,800 - 24,614 (805,919) (532) (828,281) 9,878 3,200 9,398 28,777 (799,217) (6,087) (1,558,554) (1,591,090) (2,312,605) - - (1,591,090) (2,312,605) 3 9 4 Other comprehensive income for the period, net of tax - - Total comprehensive loss for the period (1,591,090) (2,312,605) Loss per share Basic loss per share attributable to ordinary equity holders 5 (0.33) (0.51) The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 36 | P a g e CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 ASSETS Cash and cash equivalents Trade and other receivables Total current assets Property, plant and equipment Exploration assets Total non-current assets TOTAL ASSETS LIABILITIES Trade and other payables Provisions Total current liabilities Provisions Total non-current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY 30 Jun 2022 30 Jun 2021 Note $ $ 10 7 8 9 11 12 12 13 13 3,571,022 59,198 3,630,220 157,441 21,023,597 21,181,038 24,811,258 113,547 13,682 127,229 29,360 29,360 156,589 3,334,587 26,454 3,361,041 85,410 20,933,294 21,018,704 24,379,745 124,422 138,014 262,436 57,620 57,620 320,056 24,654,669 24,059,689 130,689,277 2,186,070 (108,220,678) 130,689,277 320,615 (106,950,203) 24,654,669 24,059,689 The consolidated statement of financial position is to be read in conjunction with the accompanying notes. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 37 | P a g e CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 Issued capital Accumulated losses Reserves Total equity Note $ $ $ $ Opening balance at 1 July 2020 123,813,483 (105,800,061) 1,839,368 19,852,790 Comprehensive income Loss for the period Total comprehensive income for the period Transactions with owners and other transfers Issue of options Conversion of listed options Transfer from options reserve Expiry of options Share issue costs Expiry of performance rights Balance as at 30 June 2021 - - (2,312,605) (2,312,605) - - (2,312,605) (2,312,605) 13 13 13 13 13 13 - 5,435,570 1,765,163 - (324,939) - 130,689,277 - - - 1,074,463 - 88,000 (106,950,203) 1,408,873 - (1,765,163) (1,074,463) - (88,000) 320,615 1,408,873 5,435,570 - - (324,939) - 24,059,689 Opening balance at 1 July 2021 130,689,277 (106,950,203) 320,615 24,059,689 Comprehensive income Loss for the period Total comprehensive loss for the period Transactions with owners and other transfers Issue of options Option issue costs Transferred to retained earnings Balance as at 30 June 2022 - - (1,591,090) (1,591,090) - - (1,591,090) (1,591,090) 13 13 13 - - - 130,689,277 - - 320,615 (108,220,678) 2,383,130 (197,060) (320,615) 2,186,070 2,383,130 (197,060) - 24,654,669 The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 38 | P a g e CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022 Note Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Government grants and tax incentives Lease income Interest received Net cash outflow from operating activities 10(a) Cash flows from investing activities Payments for exploration and evaluation Proceeds on disposal of property, plant and equipment Payments for property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from issue of options Proceeds from exercise of options Share issue costs Option issue costs Net cash inflow from financing activities 13 13 Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 10 2022 $ 13,527 (818,341) - 9,600 10,228 (784,986) 2021 $ 1,540 (763,265) 16,521 2,400 9,878 (732,926) (1,065,372) - (99,277) (1,788,498) 10,000 (44,572) (1,164,649) (1,823,070) 2,383,130 - - (197,060) 2,186,070 236,435 3,334,587 3,571,022 - 5,435,570 (324,939) - 5,110,631 2,554,635 779,952 3,334,587 The consolidated statement of cash flows is to be read in conjunction with the accompanying notes. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 39 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 1. Reporting entity Auris Minerals Limited (the Company or Auris Minerals) is a company domiciled in Australia. The address of the Company’s registered office and principal place of business is Level 3, 18 Richardson Street, West Perth WA 6005. The Company is primarily involved in the exploration of mineral tenements in Western Australia. The consolidated financial statements of the Company as at and for the year ended 30 June 2022 comprised the Company and its wholly owned subsidiaries (together referred to as the “Group”). Statement of compliance a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian interpretations) adopted by the Australian Accounting Standard Board (AASB) and the Corporations Act 2001. The financial report of the Group complies with the International Financial Reporting Standards (IFRSs) and interpretations adopted by the International Accounting Standards Board (IASB). The financial statements were authorised for issue by the Board of Directors on 26 August 2022. b) Basis of measurement The financial statements have been prepared on the historical cost basis except for share based payments which are measured at fair value. The methods used to determine fair values are discussed further at note 2 (n) under share based payment transactions. Going Concern The financial report has been prepared on the going concern basis, which contemplated the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. The directors have considered the funding and operational status of the business in arriving at their assessment of going concern and believe that the going concern basis of preparation is appropriate, based upon the following: - Current cash and cash equivalents on hand; - The ability of the Company to obtain funding through various sources, including debt and equity; and - The ability to further vary cash flow depending upon the achievement of certain milestones within the business plan. c) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Group’s functional currency. d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 40 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. 2. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by the Group. Certain comparative amounts have been reclassified to conform to the current year’s presentation where required. a) New, revised or amending accounting standards New, revised or amending Accounting Standards and Interpretations adopted The Consolidated Entity has adopted all of the new, revised or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2022. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. b) Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Company. In the Company’s financial statements, investments in subsidiaries are carried at cost. Minority interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit and loss and other comprehensive income and statement of financial position respectively. Transactions eliminated on consolidation Intra-group transactions, balances and any unrealised income and expenses arising from transactions, are eliminated in preparing the consolidated financial statements. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 41 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) c) Financial instruments Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at fair value through profit or loss Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. Impairment of financial assets The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss. d) Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. Dividends on ordinary shares are recognised as a liability in the period in which they are declared. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 42 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) e) Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income” in the statement of profit and loss and other comprehensive income. Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of an item if it is probable that the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other costs are recognised in the income statement as an expense incurred. Depreciation Depreciation is recognised in the income statement on a diminishing value basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives in the current and comparative periods are as follows: Office equipment Plant and equipment Motor vehicles 20% 40% 20% Depreciation methods, useful lives and residual values are reviewed at each reporting date. f) Exploration expenditure Exploration activity involves the search for mineral resources, the determination of technical feasibility and the assessment of commercial viability of an identified resource. Exploration expenditure incurred is accumulated in respect of each identifiable area of interest. Exploration expenditure is measured at cost. Exploration expenditure related to each identifiable area of interest is recognised as an exploration asset in the year in which the cost is incurred and carried forward to the extent that the following conditions are satisfied: (i) rights to tenure of the identifiable area of interest are current; and (ii) at least one of the following conditions is also met: § § the expenditure is expected to be recouped through the successful development of the identifiable area of interest, or alternatively, by its sale; or where activities in the identifiable area of interest have not at the reporting date reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and activities in, or in relation to, the area of interest are continuing. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Accumulated costs in relation to an abandoned area are written off in full in the statement of profit and loss and other comprehensive income in the year in which the decision to abandon the area is made. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 43 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) Exploration assets are reviewed at each reporting date for indicators of impairment and tested for impairment where such indicators exist. If the test indicates that the carrying value may not be recoverable the asset is written down to its recoverable amount. Any such impairment arising is recognised in the statement of profit and loss and other comprehensive income for the year. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years. g) Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in- use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. For the purposes of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. The Group’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss and other comprehensive income. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amounts of other assets in the unit (group of units) on a pro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised. h) Employee benefits Defined contribution superannuation funds A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in the statement of profit and loss and other comprehensive income in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 44 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) Short-term benefits Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. i) Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost. Exploration activities give rise to obligations for site closure and rehabilitation. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology discounted to their present values. j) Revenue Services Revenue from services rendered is recognised in the statement of profit and loss and other comprehensive income in proportion to the stage of completion of the transaction at the reporting date. Finance income and finance costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in the statement of profit and loss and other comprehensive income, using the effective interest method. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and impairment losses recognised on financial assets. k) Income tax Income tax expense comprises current and deferred tax. Current and deferred tax are recognised in the statement of profit or loss and other comprehensive income except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 45 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. l) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. m) Loss per share The Company presents basic and diluted loss per share for its ordinary shares. Basic loss per share is calculated by dividing the profit or loss attributable to the ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is only determined if the Company is in a profit position. Refer to note 5 for details. n) Accounting estimates and judgements Management discusses with the Board the development, selection and disclosure of the Group’s critical accounting policies and estimates and the application of these policies and estimates. The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Taxation Balances disclosed in the financial statements and the notes related to taxation, are based on the best estimates of directors and take into account the financial performance and position of the Group as they pertain to current income tax legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current tax position represents the best estimate, pending assessment by the Australian Tax Office. Exploration assets The accounting policy for exploration expenditure results in expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. This policy requires management to make certain estimates as to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that the recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to profit and loss. Share-based payment transactions The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of rights granted is measured using the Black Scholes pricing model, taking into account individual terms and conditions. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 46 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 2. Significant accounting policies (continued) Estimated useful lives of assets Estimated useful lives of assets have been based on historical experience. The condition of the assets is assessed at least once per year and considered against the remaining life. Adjustments to useful lives are made when considered necessary. Provision for rehabilitation Included in liabilities at the end of each reporting period is an amount that represents an estimate of the cost to rehabilitate the land upon which the Group has carried out its exploration for mineral resources. Actual costs incurred in future periods to settle these obligations could differ materially from these estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates, and discount rates could affect the carrying amount of this provision. Impairment The Group assesses impairment at the end of each reporting period by evaluating conditions or events specific to the Group that may be indicative of impairment indicators. The decision as to the existence of impairment indicators requires judgement. 3. Revenue and expenses include: Administrative expenses Employee benefits expense Office lease payments Depreciation Legal services Company secretarial services Other Note 8 2022 $ 265,194 47,969 27,246 32,805 48,000 384,705 805,919 2021 $ 227,409 54,626 14,486 137,435 28,000 336,261 799,217 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 47 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 4. a) Income tax expense Numerical reconciliation between tax expense / (benefit) and pre-tax net loss Loss before tax Income tax benefit using the domestic corporation tax rate of 25% (2021: 26%) Increase / (decrease) in income tax due to: Non-deductible expenses Temporary differences and losses not recognised Adjustments in respect of previous current income tax Tax amortisation of capital raising costs Income tax benefit b) Tax consolidation 2022 $ 2021 $ (1,591,090) (2,312,605) (397,772) (601,277) - 421,187 - (23,415) - (7,474) 639,751 - (31,000) - The company and its 100% owned controlled entities have formed a tax consolidated group. Members of the Consolidated Entity have entered into a tax sharing arrangement in order to allocate income tax expense to the wholly owned controlled entities on a pro-rata basis. The agreement provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. At balance date, the possibility of default is remote. The head entity of the tax consolidated group is Auris Minerals Limited. c) Tax effect accounting by members of the tax consolidated group Members of the tax consolidated group have entered into a tax funding agreement. The tax funding agreement provides for the allocation of current taxes to members of the tax consolidated group. Deferred taxes are allocated to members of the tax consolidated group in accordance with a group allocation approach which is consistent with the principles of AASB 112 Income Taxes. The allocation of taxes under the tax funding agreement is recognised as an increase/decrease in the controlled entities intercompany accounts with the tax consolidated group head company, Auris Minerals Limited. In this regard the Company has utilised the benefit of tax losses from controlled entities of $1,215,870 (2021: $1,868,578) as of the balance date. The nature of the tax funding agreement is such that no tax consolidation contributions by or distributions to equity participants are required. d) Deferred tax (liabilities) / assets not recognised Exploration expenditure Plant and equipment Prepaid expenditure Environmental liability Provisions and sundry items Business related costs Capital losses Tax losses Deferred tax asset not recognised Net deferred tax liability Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 2022 $ (4,758,944) 399 (9,251) 7,340 17,063 124,082 152,449 24,506,681 (20,039,819) 2021 $ (4,884,266) (338) (2,386) 14,981 46,796 105,567 158,547 25,660,180 (21,099,081) - - 48 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilise the benefits. 5. Loss per share Basic loss per share (cents) 2022 Cents 0.33 2021 Cents 0.51 The calculation of basic loss per share at 30 June 2022 is based on the loss attributable to ordinary shareholders of $1,591,090 (2021: $2,312,605) and a weighted average number of ordinary shares outstanding of 476,625,957 (2021: 450,028,642). This calculation does not include instruments that could potentially dilute basic earnings per share in the future, as these instruments are anti-dilutive, since their inclusion would reduce the loss per share. 6. Auditors remuneration Audit services: Audit and review of financial reports 7. Trade and other receivables Receivable from Australian Taxation Office Prepaid expenses Other 2022 $ 26,421 26,421 2022 $ - 37,003 22,195 59,198 2021 $ 28,700 28,700 2021 $ 6,398 9,176 10,880 26,454 The Group’s exposure to credit and currency risks and impairment losses related to trade and other receivables are disclosed in note 18. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 49 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 8. Property, plant and equipment A reconciliation of the carrying amounts for each class of property, plant and equipment is set out below. Carrying amount At cost Plant & equipment $ Office equipment $ Motor vehicles $ Total $ 59,973 208,293 59,231 327,497 Accumulated Depreciation (17,196) (170,594) (54,297) (242,087) Balance at 30 June 2021 42,777 37,699 4,934 85,410 At cost Accumulated Depreciation Balance at 30 June 2022 60,473 211,201 (22,345) (178,728) 38,128 32,473 155,100 (68,260) 86,840 426,774 (269,333) 157,441 Movement in carrying amount Balance at 1 July 2020 Additions Disposals Depreciation Balance at 30 June 2021 Balance at 1 July 2021 Additions Disposals Depreciation Balance at 30 June 2022 2,979 44,572 (602) (4,172) 42,777 42,777 500 - (5,149) 38,128 47,780 6,167 - - (10,081) 37,699 37,699 2,908 - (8,134) 32,473 - - (1,233) 4,934 4,934 95,869 - (13,963) 86,840 56,926 44,572 (602) (15,486) 85,410 85,410 99,277 - (27,246) 157,441 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 50 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 9. Exploration expenditure Exploration $ Evaluation $ Development $ Total $ Balance at 1 July 2020 Expenditure during the period Adjustment to environmental liability (i) Impairment of assets (ii) Balance at 30 June 2021 Balance at 1 July 2021 Expenditure during the period Adjustment to environmental liability (i) Adjustment to stamp duty provision Impairment of assets (iii) 19,232,922 3,243,006 15,920 (1,558,554) 20,933,294 20,933,294 1,071,897 (28,260) (125,053) (828,281) Balance at 30 June 2022 21,023,597 - - - - - - - - - - - - - - - - - - - - - - 19,232,922 3,243,006 15,920 (1,558,554) 20,933,294 20,933,294 1,071,897 (28,260) (125,053) (828,281) 21,023,597 (i) (ii) (iii) The estimated environmental liability is based on an annual assessment under the criteria adopted by the Mining rehabilitation Fund as implemented by the Department of Mines and Petroleum. The carrying value has been impaired based on the termination of the Sam’s Creek Share Purchase Agreement. Any and all costs capitalised against the Sam’s Creek tenements have been reversed and recorded as an impairment expense at the prior year reporting date. The carrying value has been impaired based on tenements the Company is looking to relinquish or divest over the coming 12 months. Any and all costs capitalised against these tenements have been reversed and recorded as an impairment expense at the reporting date. 10. Cash and cash equivalents Bank balances Cash and cash equivalents in the statement of cash flows 2022 $ 2021 $ 3,571,022 3,334,587 3,571,022 3,334,587 The exposure to interest rate risk and a sensitivity analysis for financial assets are discussed in note 18. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 51 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 10. Cash and cash equivalents (continued) a) Reconciliation of cash flows from operating activities Loss for the period after income tax Adjusted for: Depreciation expense Government cash boost Impairment of exploration assets Loss on disposal of assets Note 2022 $ 2021 $ (1,591,090) (2,312,605) 8 9 27,246 - 828,281 - 15,486 (10,800) 1,558,554 (9,398) Operating loss before changes in working capital and provisions (758,763) (758,763) (Increase) in trade and other receivables (Decrease)/Increase in trade and other payables Net cash outflow from operating activities b) Non cash financing and investing activities (32,744) (16,679) (9,883) 35,720 (784,986) (732,926) There were no non-cash financing and investing activities during the year ended 30 June 2022. For the year ended 30 June 2021, the Company issued 32,150,000 options (valued at $1,408,873) as part of the agreement to acquire Sam’s Creek. The Options were valued using the Black and Scholes option pricing model. Although the Sam’s Creek Share Purchase Agreement was terminated (Note 9), as announced to the market on 1 June 2021, Sandfire Resources Limited exercised 32,150,000 options at $0.08 on 13 November 2020 (Note 13). 11. Trade and other payables Trade payables and other accruals Monies held in trust 2022 $ 90,403 23,144 113,547 2021 $ 101,278 23,144 124,422 Monies held in trust On 20 February 2017, being the applicable record date, the Company provided shareholders with a notice of intention to sell shares of less than a marketable parcel in accordance with the company constitution. Impacted shareholders were given the opportunity to return their Notice of Retention by 10 April 2017 if they did not want these shares to be sold on their behalf. The sale was concluded on 19 April 2017 and 1,350 shareholders collectively holding 1,509,225 shares received their proceeds from the sale ($0.07 per share sold). The monies currently held in trust represent unpresented cheques at the balance date. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 52 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 12. Provisions Current provisions Employee leave benefits Provision for stamp duty Non-current provisions Note Environmental provision Movement in non-current provisions Balance at 1 July Provision adjustment Balance at 30 June 9 2022 $ 13,682 - 13,682 2022 $ 29,360 29,360 57,620 (28,260) 29,360 2021 $ 12,961 125,053 138,014 2021 $ 57,620 57,620 41,700 15,920 57,620 A provision has been made in respect of environmental rehabilitation on tenements based on the disturbance criteria as determined by Department of Mines and Petroleum. 13. Issued capital and reserves Issued and fully paid ordinary shares 2022 $ 2021 $ 130,689,277 130,689,277 Movement in ordinary shares Note 2022 No. 2022 $ 2021 No. 2021 $ On issue at 1 July 476,625,957 130,689,277 408,681,340 123,813,483 Transfer from options reserve Conversion of listed options Share issue costs On issue at 30 June - - - - - - - 1,765,163 67,944,617 5,435,570 - (324,939) 476,625,957 130,689,277 476,625,957 130,689,277 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 53 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 13. Issued capital and reserves (continued) Nature and purpose of share-based payments reserve The share-based payments reserve represents the fair value of equity instruments issued to employees as compensation and issued to external parties for the receipt of goods and services. This reserve will be reversed against issued capital when the underlying shares are converted and reversed against retained earnings when they are allowed to lapse. Movement in reserves Share based payments reserve Balance at 1 July Cancellation of performance rights Listed options exercised Expiry of options Balance at 30 June Gain/(loss) from equity investment reserve Balance at 1 July Transferred to retained earnings Balance at 30 June Option reserve Balance at 1 July Allotment of listed options Option issue costs Listed options expired Listed option exercised Balance at 30 June Total reserves Movement in listed options Note 2022 17 17 $ - - - - - 2021 $ 497,050 (88,000) (9,500) (399,550) - 320,615 (320,615) - 320,615 - 320,615 - 2,383,130 (197,060) - - 2,186,070 1,021,703 1,408,873 - (674,913) (1,755,663) - 2,186,070 320,615 Options expiring on or before Exercise Price On issue at 1 Jul 21 Issued Exercised Expired 30 Nov 2023 $0.08 - - 476,625,957 476,625,957 - - On issue at 30 Jun 22 - 476,625,957 - 476,625,957 Issue of Options The Company completed a fully underwritten pro-rata non-renounceable offer on 25 November 2021 and issued 476,625,957 Options raising $2,383,130 before costs. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 54 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 14. Controlled entities Auris Exploration Pty Ltd, incorporated in Australia (i) (ii) Auris NZ Pty Ltd (iii) (i) Auris Exploration Pty Ltd was formerly known as Grosvenor Gold Pty Ltd. (ii) The parent entity acquired a 100% interest in Auris Exploration Pty Ltd on 8 March 2012. (iii) Incorporated 1 December 2020 and deregistered 28 March 2022 2022 % 100 - 2021 % 100 100 15. Segment reporting The Group operations are entirely associated with exploration and related development activities. 16. Parent information Statement of Financial Position Assets Total current assets Total non-current assets Total assets Liabilities Total current liabilities Total non-current liabilities Total liabilities Equity Issued capital Reserves Accumulated losses Total equity Statement of Profit and Loss and Other Comprehensive Income Total loss Total comprehensive loss 17. Share based payments 2022 $ 2021 $ 3,608,092 47,306,357 3,341,685 46,238,562 50,914,449 49,580,247 98,600 25,332,898 238,385 22,080,121 25,431,498 22,318,506 130,689,277 2,186,070 (107,392,396) 130,689,277 320,615 (103,748,151) 25,482,951 27,261,741 3,964,861 2,051,912 3,964,861 2,051,912 There were no share-based payments during the year ended 30 June 2022. During the year ended 30 June 2021, the Company issued 32,150,000 options (valued at $1,408,873) as part of the agreement to acquire Sam’s Creek. The Options were valued using the Black and Scholes option pricing model. The Share Purchase Agreement for the acquisition of Sam’s Creek was ultimately terminated (Note 9), as announced to the market on 1 June 2021. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 55 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 18. Financial instruments Financial risk management This note presents information about the Group’s exposure to credit, liquidity and market risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Group’s principal financial instruments comprise receivables, payables, cash and short-term deposits. All financial assets measured at fair value are considered to be Level 1 financial assets. That is, they have quoted prices in active markets for identical assets. Risk exposures and responses The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial targets while protecting future financial security. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks. The main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rates via assessments of market forecasts for interest rates and monitoring liquidity risk through the development of future rolling cash flow forecasts. The Group does not use any form of derivatives as the Group’s operations and related financial instruments are not at a level of complexity to require the use of derivatives to hedge its exposures. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Credit risk Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Group. The Group’s potential concentration of credit risk consists mainly of cash deposits with banks and other receivables. The Group’s short term cash surpluses are placed with banks that have investment grade ratings. The maximum credit risk exposure relating to the financial assets is represented by the carrying value as at the balance sheet date. The Group considers the credit standing of counterparties when making deposits to manage the credit risk. Considering the nature of the Group’s ultimate customers and the relevant terms and conditions entered into with such customers, the Group believes that the credit risk is immaterial. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 56 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 18. Financial instruments (continued) Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by maintaining adequate cash reserves either from funds raised in the market or via short term loans and by continuously monitoring forecast and actual cash flows. The following are the contractual and expected maturities of the Group’s non-derivative, non-cash financial assets and the Group’s expected maturities of financial liabilities: As at 30 June 2022 Financial assets Trade and other receivables Financial liabilities Trade and other payables Provisions Net outflow As at 30 June 2021 Financial assets Trade and other receivables Financial liabilities Trade and other payables Provisions Net outflow Equity price risk Within 6 months 6 to 12 months $ $ 59,198 59,198 113,547 13,682 127,229 (68,031) 26,454 26,454 124,422 138,014 262,436 (235,982) - - - - - - - - - - - - >12 months Total $ - - - 29,360 29,360 $ 59,198 59,198 113,547 43,042 156,589 (29,360) (97,391) - - - 57,620 57,620 26,454 26,454 124,422 195,634 320,056 (57,620) (293,602) Equity price risk is the risk that the value of the Group’s financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so as to maintain a strong capital base sufficient to maintain future exploration, evaluation and development of its mineral projects. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt. Due to the Group being principally involved in mineral exploration, the primary source of funding is equity raisings. As at 30 June 2022, the Group had net working capital of $3,502,991 (2021: $3,098,605). The Group’s net asset position was $24,654,669 (2021: $24,059,689). Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 57 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 18. Financial instruments (continued) There were no changes in the Group’s approach to capital management during the year. Risk management policies and procedures are established with regular monitoring and reporting. The Group is not subject to externally imposed capital requirements. Fair value Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 to the financial statements. The financial assets and liabilities included in the assets and liabilities of the Group approximate net fair value, determined in accordance with the accounting policies disclosed in Note 2 to the financial statements. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Cash flow interest rate risk The Group is exposed to interest rate risk, primarily on its cash and cash equivalents. Cash flow interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest- bearing financial instruments. The Group does not use derivatives to mitigate these exposures. The interest rate profile of the Group’s interest-bearing financial instruments was: Fixed interest rate maturity Average interest rate % Variable interest rate Less than 1 year 1 to 5 years More than 5 years A$ A$ A$ A$ Total A$ At 30 June 2022 Financial assets Cash and cash equivalents Financial liabilities At 30 June 2021 Financial assets Cash and cash equivalents Financial liabilities 1.1 - 0.5 - 3,571,022 - 3,334,587 - - - - - - - - - - - - - 3,571,022 - 3,334,587 - Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have no material impact on the income statement. There would be no effect on the equity reserves other than those directly related to income statement. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 58 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 19. Related parties Key management personnel compensation Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or payable to each member of the Group’s key management personnel (KMP) for the year ended 30 June 2022. The totals of remuneration paid to KMP of the Group during the year comprised: Short-term employee benefits Post-employment benefits Termination benefits Share-based payments 2022 $ 252,273 2,727 - - 255,000 2021 $ 217,315 2,342 - - 219,657 Other than the directors and Chief Executive Officer (if applicable), no other person is concerned in, or takes part in, the management of the Group or has the authority and responsibility for planning, directing and controlling the activities of the Group. Short-term employee benefits These amounts include fees and benefits paid to the Non-Executive Directors as well as all fees, salary, paid leave, fringe benefits awarded to Executive Directors as well as the Chief Executive Officer (if applicable). Post-employment benefits These represent the cost of superannuation contributions made during the year. Share-based payments These amounts represent expense related to the participation of directors in equity-settled benefit schemes as measured by the fair value of options or rights granted on the grant date. Further information in relation to key management personnel remuneration can be found in the directors’ report. Individual directors and executives compensation disclosures Information regarding individual directors' compensation and some equity instruments disclosures as required by Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report. Apart from the details disclosed in this note, no director has entered into a material contract with the Group since the end of the previous financial year and there were no material contracts involving directors’ interests at year- end. Key management personnel and director transactions A number of key management persons, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities. A number of these entities may or may not have transacted with the Company or its subsidiaries in each reporting period. The terms and conditions of the transactions with management persons and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non- director related entities on an arm’s length basis. During the financial year ended 30 June 2022, $11,200 was paid to Horseshoe Metals Limited for the reimbursement of field camp meals and accommodation. Craig Hall is a director of Horseshoe Metals Limited. During the financial year ended 30 June 2021, $50,000 was paid to Westar Capital Limited for the introduction and facilitation of the proposed Sam’s Creek Share Purchase Agreement. Neville Bassett is a director of Westar Capital Limited. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 59 | P a g e NOTES TO THE CONSOLIDATED FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2022 20. Commitments and contingent liabilities Exploration expenditure commitments in respect of tenement holdings Payable not later than 12 months Payable between 12 months and 5 years 2022 $ 1,148,360 874,000 2,022,360 2021 $ 775,000 3,375,000 4,150,000 21. Events subsequent to reporting date No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years, other than the following: - Sandfire Resources Ltd have provided formal notice of their withdrawal from the Cheroona and Cashman farm in agreements, effective 4 August 2022. Sandfire have compiled all reports and data and have handed over to Auris. Auris are completing a detailed review of all project data, to determine next steps and any future work programmes. - The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has had no significant impact on the Group up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation continues to develop and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 60 | P a g e DIRECTORS’ DECLARATION In the opinion of the directors of Auris Minerals Limited (a) the Consolidated Financial Statements and Notes, as set out on pages 36 to 60, and the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001, including: (i) (ii) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance, for the financial year ended on that date; and complying with Australian Accounting Standards Interpretations) and the Corporations Regulations 2001; (including the Australian Accounting (b) (c) the financial report also complies with International Financial Reporting Standards as disclosed in note 1(a); 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 required by section 295A of the Corporations Act 2001 from the Chief Executive Officer (equivalent) and Chief Financial Officer (equivalent) for the financial year ended 30 June 2022. Signed in accordance with a resolution of the directors. NEVILLE BASSETT NON-EXECUTIVE CHAIR Dated at West Perth this 26th day of August 2022 Auris Minerals Limited I 2022 ANNUAL REPORT ABN 77 085 806 284 61 | P a g e

Continue reading text version or see original annual report in PDF format above