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
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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
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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
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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).
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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.
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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)
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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