ASX Announcement
22 March 2024
ASX: AWJ | ACN 635 470 843
auricmining
31 December 2023 Full Year Financial Results.
Auric Generated $4.22 Million Net Operating Cash.
Highlights
•
Financial year posts a maiden profit of $1,313,644.
• Adjusted maiden profit after one off write-down is $2,845,638.
• Net cash from operating activities is $4,223,898.
2023 Full Year Financial Report
Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to provide its
financial statements for the year ending 31 December 2023.
Managing Director, Mark English, said “We’ve topped off an outstanding 2023 with
a maiden adjusted profit of $2.8 million. The net cash from operating activities
resulted in a surplus of $4.22 million, a terrific result.
“We benefited from a rising gold price as we undertook Stage One mining at
Jeffreys Find. The mining performed better than expected with production of 9,741
ounces of gold selling at an average of $3,006 per ounce. Six months of mining
generated almost $10 million in surplus cash for Auric and its JV partner, BML
Ventures Pty Ltd of Kalgoorlie. Mining at Jeffreys Find has commenced for the 2024
year. The first processing is scheduled at the Greenfields Mill in mid-late April 2024.
“The past 12 months has seen us become self-funding for 2024. We are a dynamic
small gold company with a pipeline of mining activities, that will generate cash for
the Company and our shareholders,” said Mr English.
This announcement has been approved for release by the Board.
Corporate Enquiries
Mark English
Managing Director
Auric Mining Limited
+61 409 372 775
menglish@auricmining.com.au
Follow our communications
Subscribe: auricmining.com.au
+61 8 9548 9997 | info@auricmining.com.au | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au
page | 1
Auric Mining Limited and Controlled Entities
ABN 29 635 470 843
Financial Statements
31 December 2023
Auric Mining Limited and Controlled Entities
Contents
31 December 2023
Directors' report
Auditor's independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated statements
Directors' declaration
Independent auditor's report to the members of Auric Mining Limited
Shareholder information
General information
2
12
13
14
15
16
17
36
37
41
The financial statements cover both Auric Mining Limited as an individual entity and the Consolidated Entity consisting of Auric
Mining Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in
Australian dollars, which is Auric Mining Limited's functional and presentation currency.
Auric Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business are:
Registered office
Level 1, 1 Tully Road,
East Perth WA 6004
Principal place of business
Level 1, 1 Tully Road,
East Perth WA 6004
A description of the nature of the Consolidated Entity's operations and its principal activities are included in the Directors'
report.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 21 March 2024.
1
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
The Directors present their report, together with the financial statements, on the Consolidated Entity (referred to hereafter as
the 'Consolidated Entity' or ‘Group’) consisting of Auric Mining Limited (referred to hereafter as "Auric', the "Company" or
"Parent Entity") and the entities it controlled at the end of, or during, the year ended 31 December 2023.
Directors
The following persons were Directors of Auric Mining Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Steven Morris - Non-Executive Chair
Mark English - Managing Director
John Utley - Executive Director
Particulars of each Director's experience and qualifications are set out later in this report.
Principal Activities
The principal activities of the Group during the financial period were gold exploration, mining and development.
Operating and Financial Review
During the year, the Company completed further RC drilling programs at both Chalice West and Miitel South.
The Company executed grade control drilling at Jeffreys Find Gold Deposit as announced to ASX on 16 January 2023.
The Company executed a toll milling agreement between FMR Investments Pty Ltd and BML Ventures Pty Ltd for the Jeffreys
Find Gold Deposit as announced to ASX on 31 March 2023.
On 13 April 2023, the Company announced the Chalice West and Miitel South RC Drilling results.
BML Ventures Pty Ltd commenced open-pit gold mining at Jeffreys Find Gold Mine as announced to ASX on 17 May 2023.
The Company completed a scoping study for Munda Gold Deposit as announced to ASX on 28 June 2023.
The Company announce that toll milling of the first batch of approximately 30,000 tonnes of ore from its Jeffreys Find Gold
Mine has commenced as announced to ASX on 20 July 2023.
On 8 August 2023, the Company announced the toll milling and processing of the first parcel of gold ore had been completed.
The Company completed first stage of open pit mining at Jeffreys Find. 1,721 ounces of gold was produced and sold from the
first 36,180 tonne parcel as announced to ASX on 25 August 2023.
A second gold milling campaign commenced at the Greenfields Mill on 11 September 2023. Approximately 145,000 tonnes of
ore was processed from the first stage pit as announced to ASX.
On 1 December 2023, the Company announced a final reconciliation from Stage One mining of Jeffreys Find Gold Mine. Total
9,741 ounces of gold were produced and Auric received its share of the surplus cash of $4.77 million.
The earnings for the Consolidated Entity after providing for income tax amounted to $1,313,644 (31 December 2022: loss of
$1,106,692).
Significant changes in the state of affairs
There were no significant changes in the state of affairs aside from the matters referred to in the review of operations above
of the Consolidated Entity during the financial year.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
2
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Matters subsequent to the end of the financial year
After the year ended 31 December 2023, the Company submitted 2 tenements applications to acquire E15/2069 and
E15/2073. The Company issued 2,000,000 unquoted options expiry 31 January 2028 exercisable at $0.15 and 2,000,000
unquoted options expiry 31 January 2029 exercisable at $0.225 to Canary Capital Pty Ltd (and nominees) as part of their
corporate advisory services provided to the Company.
No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect
the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future
financial years.
Likely developments and expected results of operations
Information on likely developments, future prospects and business strategies of the operations of the Consolidated Entity and
the expected results of operations, not otherwise disclosed in this report, have not been included in this report because the
Directors believe that the inclusion of such information would be likely to result in unreasonable prejudice to the Consolidated
Entity.
Indemnifying Officers or Auditor
During the year, the Group maintained an insurance policy which indemnifies the directors and officers in respect of any
liability incurred in connection with the performance of their duties as directors and officers of the Group to the extent permitted
by the Corporations Act 2001.
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company
or any related entity against a liability incurred by the auditor. During the financial year, the Group has not paid a premium in
respect of a contract to insure the auditor of the Company or any related entity.
Environmental regulation
The Consolidated Entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law as it is still in exploration or mining activities.
Risk Statement
The Consolidated Entity is committed to the effective management of risk to reduce uncertainty in the Consolidated Entity’s
business outcomes and to protect and enhance shareholder value. There are various risks that could have a material impact
on the achievement of the Consolidated Entity’s strategic objectives and future prospects.
Key risks and mitigation activities associated with the Consolidated Entity’s objectives are set out below:
Exploration risk
The Consolidated Entity’s projects are at various stages of exploration, and potential investors should understand that mineral
exploration is a high-risk undertaking. There can be no assurance that exploration of these projects, or any other tenements
that may be acquired in the future, will result in the discovery of an economic mineral deposit.
The future exploration activities of the Consolidated Entity may be affected by a range of factors including geological
conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and technical difficulties,
industrial and environmental accidents, local title processes, changing government regulations and many other factors beyond
the control of the Consolidated Entity.
In addition, the tenements forming the projects of the Consolidated Entity may include various restrictions excluding, limiting
or imposing conditions upon the ability of the Consolidated Entity to conduct exploration activities. While the Consolidated
Entity will formulate its exploration plans to accommodate and work within such access restrictions, there is no guarantee that
the Consolidated Entity will be able to satisfy such conditions on commercially viable terms, or at all.
The Consolidated Entity uses a number of exploration techniques in order to reduce the level of exploration risks and continues
to explore new and innovative technologies through its day to day operations.
Regulatory risk
The Consolidated Entity’s mining and exploration activities are dependent upon the maintenance (including renewal) of the
tenements in which the Consolidated Entity has or acquires an interest. Maintenance of the Consolidated Entity’s tenements
is dependent on, among other things, the Consolidated Entity’s ability to meet the licence conditions imposed by relevant
authorities.
3
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Although the Consolidated Entity has no reason to think that the tenements in which it currently has an interest will not be
renewed, there is no assurance that such renewals will be given as a matter of course and there is no assurance that new
conditions will not be imposed by the relevant authority or whether the Consolidated Entity will be able to meet the conditions
of renewal on commercially reasonable terms, if at all.
The Consolidated Entity works with local government and mining departments to ensure it meets the required level of reporting
requirements and to reduce any potential for breach of regulatory requirements.
Future funding risk
Exploration and development costs and pursuit of its business plan will use funds from the Consolidated Entity’s current cash
reserves from mining operations and the amounts raised under other funding opportunities.
The development of one or more of its projects may require the Consolidated Entity to raise capital.
Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the market or may
involve restrictive covenants which limit the Consolidated Entity’s operations and business strategy. Debt financing, if
available, may involve restrictions on financing and operating activities.
Although the directors believe that additional capital can be obtained, no assurances can be made that appropriate capital or
funding, if and when needed, will be available on terms favourable to the Consolidated Entity or at all.
If the Consolidated Entity is unable to obtain additional financing as needed, it may be required to reduce the scope of its
activities and this could have a material adverse effect on the Consolidated Entity’s activities and could affect the Consolidated
Entity’s ability to continue as a going concern. The Consolidated Entity’s funding requirements are reviewed on a regular basis
in order to mitigate future funding risk.
Proceedings on Behalf of the Company
No person has applied for leave of a Court to bring proceedings against 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 a party to any Court proceedings during the period.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Options
At the date of this report, the unissued ordinary shares of Auric Mining Limited under option are as follows:
Grant date
5 October 2022
29 November 2022
8 December 2022
16 December 2022
19 December 2022
1 November 2023
1 February 2024
1 February 2024
Expiry date
31 March 2024
31 March 2024
31 March 2024
31 March 2024
31 March 2024
1 November 2026
31 January 2028
31 January 2029
Exercise
price
Number
under option
$0.15
$0.15
$0.15
$0.15
$0.15
$0.10
$0.15
$0.225
7,848,612
6,680,529
1,999,994
900,000
300,000
2,000,000
2,000,000
2,000,000
23,729,135
Option holders do not have any rights to participate in any issues of shares or other interests of the Company or any other
entity.
During the year ended 31 December 2023, no shares of Auric Mining Limited were issued on the exercise of options granted.
No person entitled to exercise an option had or has any right by virtue of the option to participate in any share issue of any
other body corporate.
During the year ended 31 December 2023, 2,000,000 options were issued as part of the corporate advisory services.
4
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Subsequent to the end of the financial year 31 December 2023 two tranches of 2,000,000 options for a total of 4,000,000
options were issued as part of the corporate advisory services.
Information on Directors and Company Secretary
As at the date of this report, the information on the Directors and Company Secretaries are as follows:
Name:
Title:
Qualifications:
Experience and expertise:
Steven John Morris
Non-Executive Chair
Diploma of Financial Markets (FINSIA)
Steven has over 30 years’ experience in financial markets. He was Head of Private
Clients (Australia) for Patersons Securities, Managing Director of Intersuisse Ltd,
Founder and Managing Director of Peloton Shareholder Services and held senior
executive roles in the Little Group. Steven spent 9 years on the board of the Melbourne
Football Club.
Steven was a Non-Executive Director of De Grey Mining Ltd (“DEG”) from 2014 to 2019
and Chairman of ASX-listed Purifloh Ltd (“PO3”) from 2013 to 2019.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
7,133,333 ordinary shares of Auric Mining Limited
104,166 options of Auric Mining Limited expiring 31 March 2024 @ $0.15
Name:
Title:
Qualifications:
Experience and expertise:
Mark Anthony English
Managing Director
Bachelor of Business (Curtin University)
Fellow of the Institute of Chartered Accountants Australia and New Zealand
Member of the Institute of Company Directors
Mark is a Chartered Accountant and a member of the Australian Institute of Company
Directors. Mark has 40 year career in the resources sector and corporate services. Mark
has particular responsibility for Company strategy, financial management, corporate
development and acquisition opportunities. Mark was a founding Director of Bullion
Minerals Ltd (now Devex Resources Ltd (“DEV”)), that he managed for 10 years
including completing IPO.
Mark is a Co-Founder and Shareholder in the Moora Citrus group of companies, WA’s
largest citrus producing orchard in operation for over 25 years.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
8,700,100 ordinary shares of Auric Mining Limited
333,340 options of Auric Mining Limited expiring 31 March 2024 @ $0.15
Experience and expertise:
Name:
Title:
Qualifications:
John Peter Utley
Technical Director
Master's of Science in Earth Sciences (University of Waikato, New Zealand)
Member of the Australian Institute of Mining and Metallurgy
Member of the Australian Institute of Geoscientists
John has a 35 year career in mining and exploration, principally gold sector. John has
worked in Australia, South America, Papua New Guinea and in Canada where he was
Chief Geologist for Atlantic Gold Corporation, during exploration and development of the
Touquoy Gold Mine and other gold deposits in Nova Scotia, prior to its acquisition by St
Barbara. John previously worked with Plutonic Resources Ltd, where he was head of
the exploration team at Darlot Gold Mine, during the discovery and development of the
2.3M ounce Centenary gold deposit.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
6,976,666 ordinary shares of Auric Mining Limited
208,333 options of Auric Mining Limited expiring 31 March 2024 @ $0.15
5
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Experience and expertise:
Name:
Title:
Qualifications:
Tamara Monica Barr
Joint Company Secretary: Appointed: 1 February 2022
Certificate in Governance Practice (Governance Institute of Australia)
Fellow Member (FGIA)
Tamara is a highly experienced ASX Company Secretary with over 20 years’ experience
practising as a Company Secretary and Corporate Governance Advisor across a variety
of sectors and industries. She has worked predominantly in Australia, as well as in the
UK and Europe, providing Company Secretarial advice and services to ASX listed,
Public and NFP companies. Tamara is Managing Director of corporate services firm,
Clear Sky Blue Pty Ltd where Tamara works closely with Boards to enhance their
Corporate Governance procedures.
Other current directorships:
None
Former directorships (last 3 years): None
Experience and expertise:
Name:
Title:
Qualifications:
Catherine Kah Yan Yeo
Joint Company Secretary: Appointed: 1 February 2024
Bachelor of Business in Accounting and Finance (Murdoch University)
Certificate in Governance Practice (Governance Institute of Australia)
Affiliated Member (GIA)
Catherine is a finance executive and manages all the administration and finance
functions at Auric Mining. She holds a Bachelor of Business in Accounting and Finance
from Murdoch University and is an Affiliate Member of the Governance Institute of
Australia. Prior to joining Auric, Catherine gained experience at a Perth accounting firm.
Catherine is a multilingual executive with superior language skills in English, Chinese
and Malay.
None
Other current directorships:
Former directorships (last 3 years): None
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 31 December 2023,
and the number of meetings attended by each Director were:
Steven Morris
Mark English
John Utley
Full Board
Attended
Held
6
6
6
6
6
6
Held: represents the number of meetings held during the time the Director held office.
All other matters requiring approval by the Directors, have been approved by Circular Resolution.
Remuneration report (audited)
Remuneration Policy
The remuneration policy of the company has been designed to align key management personnel (KMP) objectives with
shareholder and business objectives by providing a fixed remuneration component. The Board of the company believes the
remuneration policy to be appropriate and effective in its ability to attract and retain high-quality KMP to run and manage the
Group, as well as create goal congruence between Directors, executives and shareholders.
For the purposes of this report, KMP comprises executive and non-executive Directors of the Group, as follows:
Steven Morris – Non-Executive Chair
Mark English – Managing Director
John Utley – Technical Director
6
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
The Board’s policy for determining the nature and amount of remuneration for KMP of the Group is based on the
following:
- The remuneration policy is developed and approved by the Board after professional advice, if required.
- All KMP receive a base salary (which is based on factors such as length of service and experience), superannuation,
fringe benefits and long service leave.
- The Board reviews KMP packages annually by reference to the Group’s performance, executive performance
and comparable information from industry sectors.
KMP receive, at a minimum, a superannuation guarantee contribution required by the government, which is currently 11% of
the individual’s average weekly ordinary time earnings (AWOTE). Some individuals, however, have chosen to sacrifice part
of their salary to increase payments towards superannuation.
All remuneration paid to KMP is valued at the cost to the Group and expensed.
The Board’s policy is to remunerate non-executive Directors at market rates for time, commitment and responsibilities. The
Board determines payments to the non-executive Directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The current amount has been set
at an amount not to exceed $250,000 per annum. The maximum aggregate amount of fees that can be paid to non-executive
Directors is subject to approval by shareholders at general meeting.
Options granted under the arrangement do not carry dividend or voting rights. Each option is entitled to be converted into
one ordinary share once the interim or final financial report has been disclosed to the public and is measured using the
Hoadley’s Binomial Model.
Relationship between Remuneration Policy and Company Performance
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and executives. The
method has been applied to achieve this aim. As at the date of this report, there is no performance-based bonuses based on
KPI’s.
Employment Details of Members of Key Management Personnel
The following table provides employment details of persons who were, during the financial year , members of KMP
of the Group. The table also illustrates the proportion of remuneration that was performance and non-performance based.
7
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Position Held as at
31 December 2023
and any Change
During the Year
Contract Details
(Duration and Termination)
Group KMP
Steven Morris Non-executive Chair Consultancy agreement commenced
14 December 2020. The Company may
terminate the Consultancy Agreement
three months’ notice. The
with
Consultant may
the
Consultancy Agreement by giving the
Company one months’ notice or
immediately if Mr Morris ceases to be a
Director of the Company.
terminate
Mark English Managing Director
John Utley
Technical Director
terminate
Executive
agreement
Services
commenced 14 December 2020 and
continues in force till terminated. The
the
Company may
Agreement with three months’ notice
and the payment of twelve months base
salary. The executive may terminate the
Agreement by giving the Company
three months’ notice and being paid
twelve months base salary upon certain
events.
terminate
Executive
agreement
Services
commenced 14 December 2020 and
continues in force till terminated. The
Company may
the
Agreement with three months’ notice
and the payment of twelve months base
salary. The executive may terminate the
Agreement by giving the Company
three months’ notice and being paid
twelve months base salary upon certain
events.
2023
2022
Proportions of
Elements of
Remuneration
Related to
Performance (Other
than Options Issued)
Proportions
of Elements
of
Remuneratio
n Not
Related to
Performance
Proportions of
Elements of
Remuneration
Related to
Performance (Other
than Options
Issued)
Proportions
of Elements
of
Remuneration
Not Related to
Performance
Shares/
Units
Fixed
Salary/Fees
Non-salary
Cash-
based
Incentives
Shares/
Units
Fixed
Salary/Fees
Non-salary
Cash-
based
Incentives
%
%
%
%
%
%
–
–
100
–
–
100
–
–
100
–
100
–
–
100
–
100
The employment terms and conditions of all KMP are formalised in contracts of employment or consulting agreements.
8
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Remuneration Expense Details for the Year Ended 31 December 2023
The following table of benefits and payments represents the components of the current year remuneration expenses for each
member of KMP and their related parties of the Group. Such amounts have been calculated in accordance with Australian
Accounting Standards.
Short-term
benefits
Short-term
benefits
Short-term
benefits
Post-
employment
Salary &
Fees
$
Bonus
$
Annual
leave
$
Super
$
Other long-
term
benefits
Long
service
leave
$
50,000
226,249
176,309
5,000
10,000
10,000
-
19,248
15,990
-
28,834
21,788
-
5,777
4,876
2023
Directors
Steven Morris
Mark English
John Utley
Total
452,558
25,000
35,238
50,622
10,653
Short-term
benefits
Short-term
benefits
Short-term
benefits
Post-
employment
Salary &
Fees
$
Bonus
$
Annual
leave
$
Super
$
Other long-
term
benefits
Long
service
leave
$
Share-based
payments
Total
Performance
related
Share rights
$
$
%
-
-
-
-
55,000
290,108
228,963
574,071
-
-
-
-
Share-based
payments
Total
Performance
related
Share rights
$
$
%
2022
Directors
Steven Morris
Mark English
John Utley
Stephen Strubel
48,000
228,933
182,407
18,629
477,969
-
-
-
-
-
-
17,944
14,632
-
-
28,735
19,523
1,712
-
5,056
4,083
-
32,576
49,970
9,139
-
-
-
-
-
48,000
280,668
220,645
20,341
569,654
-
-
-
-
Securities Received that Are Not Performance-related
No members of KMP are entitled to receive securities that are not performance-based as part of their remuneration package.
Cash Bonuses, Performance-related Bonuses and Share-based Payments
Bonuses were paid to member of KMP during 31 December 2023 year.
No share-based payments were paid to members of KMP during 31 December 2023.
No bonuses or share-based payments were paid to members of KMP during 31 December 2022 year.
9
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
Additional disclosures relating to key management personnel
KMP Shareholdings
The number of ordinary shares in Auric Mining Limited held by each KMP and their related parties of the Group during the
financial year and up to the date of this financial report is as follows:
Ordinary shares
Steven Morris
Mark English
John Utley
Balance at Received
the start of as part of
the year
remuneration Additions
Disposals/
other
Balance at
the end of
the year
6,683,333
7,238,433
6,976,666
20,898,432
-
-
-
-
450,000
1,461,667
2,638,365
4,550,032
-
-
(2,638,365)
(2,638,365)
7,133,333
8,700,100
6,976,666
22,810,099
The number of options in Auric Mining Ltd held by each KMP and their related parties of the Group during the financial year
and up to the date of this financial report, exercisable at $0.15 with expiry date of 31 March 2024 is as follows:
Options expiring 31/03/2024 @ $0.15
Balance at
the start of Granted/
Acquired
the year
Expired/
forfeited/
other
Balance at
the end of
the year
Exercised
Options over ordinary shares
Steven Morris
Mark English
John Utley
104,166
208,333
208,333
-
125,007
-
520,832
125,007
-
-
-
-
-
-
-
-
104,166
333,340
208,333
645,839
The number of options in Auric Mining Ltd held by each KMP and their related parties of the Group during the financial year
ended 31 December 2022 and up to the date of this financial report, exercisable at $0.40 with expiry date of 31 October
2023 is as follows:
Options expired 31/10/2023 @ $0.40
Balance at
the start of Granted/
Acquired
the year
Expired/
forfeited/
other
Balance at
the end of
the year
Exercised
Options over ordinary shares
Steven Morris
Mark English
John Utley
2,312,500
2,515,834
2,527,500
7,355,834
-
-
-
-
-
-
-
-
2,312,500
2,515,834
2,527,500
7,355,834
-
-
-
-
There have been no KMP transactions involving equity instruments apart from those described in the tables above relating to
options and shareholdings.
Other Transactions with KMP and/or their Related Parties
There were no other transactions conducted between the Group and KMP or their related parties, apart from those disclosed
above relating to equity and compensation that were conducted other than 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 Remuneration Report
10
Auric Mining Limited and Controlled Entities
Directors' report
31 December 2023
This Directors’ Report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of
Directors:
On behalf of the Directors
___________________________
Mark English
Managing Director
21 March 2024
Perth WA
11
Auric Mining Limited and Controlled Entities
Auditor's independence declaration
Lead Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
To the directors of Auric Mining Limited
As lead auditor for the audit of Auric Mining Limited for the year ended 31 December 2023, I declare that, to the
best of my knowledge and belief, there have been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation
to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Auric Mining Limited and the entities it controlled during the period.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
J. C. Luckins
Director
Melbourne, 21 March 2024
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
12
Auric Mining Limited and Controlled Entities
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2023
Revenue
Receipts from gold sales
Interest received
Other income
Expenses
Employee benefits expense
Corporate Advisory, Company Secretarial & Consulting
Depreciation and amortisation expense
Insurance
Accounting fees
Audit fees
Legal fees
Subscriptions, Software & Conferences
ASIC, ASX & Share registry
Director Fees
Rent
Tenement Expenditure Written Off
Amortisation of Mining Expenditure
Other expenses
Consolidated
Note
2023
$
2022
$
4,766,039
25,392
200
-
8,037
-
(468,824)
(311,423)
(39,408)
(46,233)
(6,350)
(42,500)
(12,022)
(76,188)
(72,541)
(50,000)
(13,695)
(1,531,994)
(740,000)
(66,809)
(439,010)
(196,718)
(37,056)
(48,316)
(16,170)
(39,215)
(50,475)
(57,034)
(94,119)
(48,000)
(13,975)
-
-
(74,641)
Profit/(loss) before income tax expense
1,313,644
(1,106,692)
Income tax expense
4
-
-
Profit/(loss) after income tax expense for the year attributable to the owners of
Auric Mining Limited
Other comprehensive income for the year, net of tax
Total comprehensive profit/(loss) for the year attributable to the owners of
Auric Mining Limited
1,313,644
(1,106,692)
-
-
1,313,644
(1,106,692)
Basic earnings per share profit/(loss)
Diluted earnings per share profit/(loss)
Cents
Cents
21
21
1.00
1.00
(1.10)
(1.10)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
13
Auric Mining Limited and Controlled Entities
Consolidated statement of financial position
As at 31 December 2023
Assets
Current assets
Cash and cash equivalents
Other receivables
Term Deposits
Other current assets
Total current assets
Non-current assets
Investments
Property, plant and equipment
Right-of-use assets
Exploration and evaluation
Other non-current assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee Benefits
Lease Liability
Other current liabilities
Total current liabilities
Non-current liabilities
Employee benefits
Provisions
Lease Liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share Option Reserve
Accumulated losses
Total equity
Consolidated
Note
2023
$
2022
$
5
6
7
8
9
2,492,720
-
2,000,000
144,153
4,636,873
817,524
78,940
1,200,000
225,639
2,322,103
75,000
52,943
85,499
8,449,464
9,553
8,672,459
-
29,113
109,931
8,537,814
9,249
8,686,107
13,309,332
11,008,210
519,793
85,633
24,271
438,394
1,068,091
222,761
80,099
22,410
-
325,270
10
38,531
200,000
69,453
307,984
22,738
-
93,723
116,461
1,376,075
441,731
11,933,257
10,566,479
11
12
12,856,302
66,934
(989,979)
12,856,302
670,866
(2,960,689)
11,933,257
10,566,479
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
14
Auric Mining Limited and Controlled Entities
Consolidated statement of changes in equity
For the year ended 31 December 2023
Note
Issued
Capital
$
Option
Reserve
$
Accumulated
Losses
$
Total
$
Balance at 1 January 2023
12,856,302
670,866
(2,960,689) 10,566,479
Profit for the year ended 31 December 2023
Transactions with owners, directly in equity
Shares issued
Transaction costs
Vesting of share based payments
Expiry of options during the year
11
12
-
-
-
-
-
-
-
1,313,644
1,313,644
-
-
53,134
(657,066)
(603,932)
-
-
-
657,066
657,066
-
-
53,134
-
53,134
Balance at 31 December 2023
12,856,302
66,934
(989,979) 11,933,257
Note
Issued
Capital
$
Option
Reserve
$
Accumulated
Losses
$
Total
$
Balance at 1 January 2022
10,244,807 657,066
(1,853,997)
9,047,876
Loss for the year ended 31 December 2022
-
-
(1,106,692)
(1,106,692)
Transactions with owners, directly in equity
Shares issued
Transaction costs
Vesting of share based payments
11
12
2,780,200
(168,705)
-
2,611,495
-
-
13,800
13,800
-
-
-
-
2,780,200
(168,705)
13,800
2,625,295
Balance at 31 December 2022
12,856,302 670,866
(2,960,689)
10,566,479
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
15
Auric Mining Limited and Controlled Entities
Consolidated statement of cash flows
For the year ended 31 December 2023
Cash flows from operating activities
Receipts from gold sales (inclusive of GST)
Other cash received
Payments to suppliers and employees (inclusive of GST)
Consolidated
Note
2023
$
2022
$
5,283,373
200
(1,059,675)
-
-
(1,060,549)
Net cash from/(used in) operating activities
20
4,223,898
(1,060,549)
Cash flows from investing activities
Payments for investments
Payments for property, plant and equipment
Payments for exploration and evaluation
(Payment to)/Proceeds from term deposits
Payment to other deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Capital raising costs
Repayment of lease liabilities
Net cash (used in)/from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
11
(75,000)
(35,062)
(1,601,965)
(800,000)
(12,404)
-
(20,138)
(2,059,411)
820,000
(371)
(2,524,431)
(1,259,920)
-
-
(24,271)
2,780,200
(164,805)
(22,409)
(24,271)
2,592,986
1,675,196
817,524
272,517
545,007
2,492,720
817,524
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
16
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
The consolidated financial statements and notes represent those of Auric Mining Limited and controlled entities (the
‘Consolidated Entity’ or ‘Group’).
The financial statements were authorised for issue on 21 March 2024 by the Directors of the Company.
Note 1. Material accounting policy information
The accounting policies that are material to the Consolidated Entity are set out either in the respective notes or below. The
accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting year. The adoption of these
Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the
Consolidated Entity. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical
costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and
financial liabilities.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
containing relevant and reliable information about the transactions, events and conditions to which they apply. Compliance
with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial
Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below.
They have been consistently applied unless otherwise stated.
a. Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent (Auric Mining Limited)
and all of the subsidiaries (including any structured entities). Subsidiaries are entities the Parent controls. The Parent controls
an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. A list of the subsidiaries is provided in Note 17.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the
date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control
ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are fully
eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary
to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as "non-controlling interests".
The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to
a proportionate share of the subsidiary’s net assets on liquidation at either fair value or the non-controlling interests’
proportionate share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling interests are attributed
their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown
separately within the equity section of the statement of financial position and statement of comprehensive income.
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or
businesses under common control. The business combination will be accounted for from the date that control is obtained,
17
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised
(subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is
not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset
or liability is remeasured in each reporting year to fair value, recognising any change to fair value in profit or loss, unless the
change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial
instrument, are recognised as expenses in profit or loss when incurred.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
b. Income Tax
The income tax expense for the year comprises current income tax expense and deferred tax expense.
Current income tax expense charged to profit or loss is the tax payable on taxable income for the current year. Current tax
liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using
tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting year.
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as
unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items
that are recognised outside profit or loss or arising from a business combination.
A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax
liability arises from: (a) the initial recognition of goodwill; or (b) the initial recognition of an asset or liability in a transaction
which: (i) is not a business combination; and (ii) at the time of the transaction, affects neither accounting profit nor taxable
profit (tax loss).
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised, unless the
deferred tax asset relating to temporary differences arises from the initial recognition of an asset or liability in a transaction
that:
– is not a business combination; and
– at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred
tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and
it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where: (i) a legally enforceable right of set-off exists; and (ii) the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future
years in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
18
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
c. Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on
the requirements of the applicable Australian Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly ( i.e.,
unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine
fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e., the market
with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most
advantageous market available to the entity at the end of the reporting year (i.e., the market that maximises the receipts from
the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and
transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in
its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this information
is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the
financial statements.
d. Exploration and Evaluation Costs
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest.
These costs are only capitalised to the extent that they are expected to be recovered through the successful development of
the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision
to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area.
At the end of each reporting year, the Group assesses whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources of information. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s
fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount
over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in
accordance with another Standard. Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance
with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill and exploration and evaluation costs with indefinite lives and intangible
assets not yet available for use.
19
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
e. Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the
instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e.,
trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where
the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss
immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances,
valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing
component or if the practical expedient was applied as specified in AASB 15: Revenue from Contracts with Customers
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at:
– amortised cost; or
– fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
– a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
– held for trading; or
– initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
expense in profit or loss over the relevant year. The effective interest rate is the internal rate of return of the financial asset or
liability. That is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument
to the net carrying amount at initial recognition.
A financial liability is held for trading if:
– it is incurred for the purpose of repurchasing or repaying in the near term;
– part of a portfolio where there is an actual pattern of short-term profit taking; or
– a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an
effective hedging relationships).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a
designated hedging relationship are recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive
income and are not subsequently reclassified to profit or loss. Instead, they are transferred to retained earnings upon
derecognition of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an
accounting mismatch, then these gains or losses should be taken to profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
20
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
– amortised cost;
– fair value through other comprehensive income; or
– fair value through profit or loss.
Measurement is on the basis of two primary criteria:
– the contractual cash flow characteristics of the financial asset; and
– the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
– the financial asset is managed solely to collect contractual cash flows; and
– the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on
the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive
income:
– the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on
the principal amount outstanding on specified dates;
– the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the
financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through
other comprehensive income are subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
– it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as "accounting
mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on
different bases;
– it is in accordance with the documented risk management or investment strategy, and information about the groupings was
documented appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or
financial assets can be managed and evaluated consistently on a fair value basis;
– it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by
the contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial
classification and is irrevocable until the financial asset is derecognised.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration recognised by
an acquirer in a business combination to which AASB 3: Business Combinations applies, the Group may make an irrevocable
election to measure any subsequent changes in fair value of the equity instruments in other comprehensive income, while the
dividend revenue received on underlying equity instruments investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with
the Group's accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial
position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e., when the obligation in the contract is discharged, cancelled or expires).
An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to
the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
21
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in
such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
– the right to receive cash flows from the asset has expired or been transferred;
– all risk and rewards of ownership of the asset have been substantially transferred; and
– the Group no longer controls the asset (i.e., the Group has no practical ability to make a unilateral decision to sell the asset
to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the
sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or
loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive
income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit
or loss but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
– financial assets that are measured at amortised cost or fair value through other comprehensive income;
– lease receivables;
– contract assets (e.g., amounts due from customers under construction contracts);
– loan commitments that are not measured at fair value through profit or loss; and
– financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
– financial assets measured at fair value through profit or loss; or
– equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument.
A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all
discounted at the original effective interest rate of the financial instrument.
The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:
– the general approach;
– the simplified approach;
– the purchased or originated credit-impaired approach; and
– low credit risk operational simplification.
General approach
Under the general approach, at each reporting year, the Group assesses whether the financial instruments are credit impaired,
and if:
– the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss
allowance of the financial instruments at an amount equal to the lifetime expected credit losses; or
– there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12-month expected credit losses.
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting year, but instead requires the
recognition of lifetime expected credit loss at all times. This approach is applicable to:
22
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
– trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with
Customers and which do not contain a significant financing component; and
– lease receivables.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data
to get to an expected credit loss (i.e., diversity of customer base, appropriate groupings of historical loss experience, etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the
statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in fair value
recognised in other comprehensive income. Amounts in relation to change in credit risk are transferred from other
comprehensive income to profit or loss at every reporting year.
For financial assets that are unrecognised (e.g., loan commitments yet to be drawn, financial guarantees), a provision for loss
allowance is created in the statement of financial position to recognise the loss allowance.
f. Provisions
Recognition and Measurement of Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured
using the best estimate of the amounts required to settle the obligation at the end of the reporting year.
Exploration and Evaluation
Exploration and evaluation expenditure related to areas of interest is capitalised and carried forward to the extent that rights
to tenure of the area of interest are current and either costs are expected to be recouped through successful development
and exploitation of the area of interest or alternatively by sale, or where activities in the area of interest have not yet reached
a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing. Such expenditure consists of an
accumulation of acquisition costs, direct exploration and evaluation costs incurred, together with an appropriate portion of
directly related overhead expenditure.
Rehabilitation
The nature of site restoration costs include the dismantling and removal of mining plant, equipment and building structures,
waste removal, and the restoration, reclamation and revegetation of affected areas of the site in accordance with the
requirements of the mining permits. Site restoration costs are recorded at the present value of the estimated future costs of
the legal and constructive obligation to rehabilitate locations. The unwinding of the effect of discounting the provision is
recorded as a finance cost in the statement of profit or loss.
Accounting Estimates and Judgements
Judgement is required to determine whether future economic benefits are likely from either exploitation or sale, or whether
activities have not reached a stage that permits a reasonable assessment of the existence of reserves. The Group makes
certain estimates and assumptions such as the determination of a JORC resource, which involves varying degrees of
uncertainty. These estimates and assumptions may change as new information becomes available and directly impact when
the Group capitalises exploration and evaluation expenditure.
Units of Production Method of Amortisation
The Group uses the units of production method when amortising mine development assets, resulting in an amortisation charge
proportional to the depletion of the anticipated remaining life of mine production. This requires the use of estimates and
23
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 1. Material accounting policy information (continued)
assumptions, and changes in ore reserves and mineral resources driving the remaining life of mine production are accounted
for prospectively.
Significant Estimates and Assumptions in Rehabilitation
Determining the provision for mine rehabilitation involves significant estimates and assumptions due to the many factors that
will affect the ultimate liability. These factors include changes in technology, regulations, price increases, changes in the timing
of cash flows based on the life of mine plan, and changes in discount rates. Differences arising from changes in these factors
will impact the mine rehabilitation provision in the period in which they change or become known.
g. Critical Accounting & Judgements
Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on current
trends and economic data, obtained both externally and within the Group.
Exploration and evaluation expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or
where the activities have not reached a stage that permits a reasonable assessment of the existence of reserves. While there
are certain areas of interest from which no reserves have been extracted, the Directors are of the continued belief that such
expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised
expenditure is carried at the end of the reporting year at $8.45 million.
h. Share-based Payment
Transactions The Consolidated Entity 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 is determined by using either Hoadley's Binomial
Model or the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting year but may impact profit or loss and equity.
Note 2. Parent Information
The following information has been extracted from the books and records of the financial information of the Parent Entity set
out below and has been prepared in accordance with Australian Accounting Standards.
Loss
Other comprehensive income for the period
TOTAL COMPREHENSIVE LOSS
Consolidated
2023
2022
(1,159,423)
-
(1,159,423)
(1,101,901)
-
(1,101,901)
24
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 2. Parent Information (continued)
Current assets
Non-current assets
TOTAL ASSETS
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
NET EQUITY
Issued capital
Accumulated losses
Share option reserve
TOTAL EQUITY
Consolidated
2023
$
2022
$
4,591,663
5,283,272
9,874,935
2,162,976
8,803,613
10,966,589
289,459
107,984
397,443
9,477,492
266,346
116,462
382,808
10,583,781
12,856,302
(3,445,744)
66,934
9,477,492
12,856,302
(2,943,387)
670,866
10,583,781
The Parent Entity has guaranteed the contingent asset and liabilities as detailed in note 15.
Note 3. Operating segments
Identification of reportable operating segments
For management’s purposes, the Group is organised into one main operating segment, which involves the exploration and
development of minerals in Australia. All of the Group’s activities are interrelated, and discrete financial information is reported
to the Board as a single segment. Accordingly, all significant decisions are based upon analysis of the Group as one
segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole.
Note 4. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense
Tax at the statutory tax rate of 25%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-allowable items
Other deductible items
Carry forward tax losses not recognised
DTA/DTL not recognised
Income tax expense
Consolidated
2023
$
2022
$
1,313,644
(1,106,692)
328,411
(276,673)
723,958
(1,073,323)
(801,184)
822,138
42,293
(157,933)
(408,871)
801,184
-
-
25
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 5. Current assets - Term Deposits
Term deposit
Term deposit
Term deposit
Term deposit
Term deposit matures on 1 May 2024.
Note 6. Non-current assets – investments
Ordinary shares
Consolidated
2023
$
2022
$
-
-
-
2,000,000
500,000
500,000
200,000
-
2,000,000
1,200,000
Consolidated
2023
$
2022
$
75,000
-
The Company entered into a subscription agreement with Golden Horse Minerals Ltd on 18 December 2023. The number of
subscribed shares is 686,813 at $0.0975 with the aggregate price of $75,000.
Note 7. Non-current assets - exploration and evaluation
Exploration and evaluation - at cost
Consolidated
2023
$
2022
$
8,449,464
8,537,814
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Opening balance
Expenditure during the year
Jeffreys Find Rehab Costs
Jeffreys Find Amortisation Costs
Expenditure written off during the year
Closing balance
Consolidated
2023
$
2022
$
8,537,814
1,983,644
200,000
(740,000)
(1,531,994)
6,529,640
2,008,174
-
-
-
8,449,464
8,537,814
All exploration and evaluation expenditure including general activities, geological, salaries of employees, project generation,
and drilling costs are capitalised as incurred.
26
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 8. Current liabilities - trade and other payables
Trade and other payables
Accruals
Note 9. Current liabilities - Employee Benefits
Annual leave
Superannuation payable
PAYG payable
Note 10. Non-current liabilities - provisions
Jeffreys Find Rehab Costs
Consolidated
2023
$
2022
$
452,333
67,460
161,491
61,270
519,793
222,761
Consolidated
2023
$
2022
$
57,076
7,871
20,686
59,741
-
20,358
85,633
80,099
Consolidated
2023
$
2022
$
200,000
200,000
-
-
The Company has conducted a review of the mine rehabilitation and closure provision calculation for the Jeffreys Gold Project.
The review was undertaken by Leanne James Environmental and Woolard Consulting Pty Ltd. The purpose of the review was
to assess the adequacy of the closure provisions and to ensure that the final mining landforms are safe, stable, non-polluting,
and capable of sustaining the agreed post-mining land use. The closure provision calculation was based on the Northern
Territory Mining Security Calculation Tool (NTMSCT) and current contractor equipment rates. The estimated closure cost for
the Project area, including contingency, is $410,000. The breakdown of the cost includes $210,000 for BML Ventures Pty Ltd's
rehabilitation earthworks and $200,000 for Auric Mining's historic exploration rehabilitation, seeding, and post-closure
management. The closure cost estimates also include allowances for closure administration, post-closure management
remedial works and monitoring, labour hire, accommodation and messing, and equipment mobilisation and demobilisation. It
should be noted that the closure cost estimates are provisional and subject to annual review.
It is expected that the rehabilitation costs will be paid between 2026 and 2028. The provision had been calculated using best
standard practices for mining closure and rehabilitation.
27
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 11. Equity - Issued capital
Opening balance
Share issued to John Williams
Shares issued via Placement
Shares issued via SPP
Less capital raising costs
Consolidated
2023
Shares
2022
Shares
2023
$
2022
$
130,859,591
-
-
-
-
93,084,325
4,716,981
15,697,224
17,361,061
-
12,856,302
-
-
-
-
10,244,807
400,000
1,130,200
1,250,000
(168,705)
Closing Balance
130,859,591 130,859,591
12,856,302
12,856,302
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position.
In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets.
The Consolidated Entity would look to raise capital when an opportunity to invest in a business or company was seen as value
adding relative to the current Company's share price at the time of the investment.
There has been no change to the capital risk management policy during the year.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the
proceeds.
28
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 12. Equity - Share Option Reserve
A total of 2,000,000 unquoted options has been issued to Canary Capital Pty Ltd and nominees as part of their corporate
advisory services provided to the Company.
The options were valued by Moore Australia Perth using the Binomial Model to value the Options. The assumptions used are
as follows:
Stock price $0.06 Volatility 80.15%
Exercise price $0.10 Risk free rate 4.42%
Grant date 01/11/2023 Fair value per option $0.0266
Expiry date 01/11/2026
Share option reserve $53,134
The 2,633,333 options issued on 31 October 2020 for the acquisition of tenements or the capital raising with the value of
$337,066 have expired on 31 October 2023.
The 2,500,000 options issued on 29 January 2023 for the acquisition of tenements or the capital raising with the value of
$320,000 have expired on 31 October 2023.
All other options with an exercise price of $0.40 on issue as at 31 December 2022 have expired on 31 October 2023.
No shares of Auric Mining Limited were issued on the exercise of options granted.
Opening balance
Value of options issued during the year
Expired options during the year
Closing balance
Consolidated
2023
$
2022
$
670,866
53,134
(657,066)
657,066
13,800
-
66,934
670,866
Options Expiring 31 March 2024 @ $0.15
Consolidated
2023
No
2023
$
2022
No
2022
$
Opening balance
Issued as per Placement
Issued as per SPP
Issued for capital raising services
Issued under Employee Incentives Securities Plan
17,729,135
-
-
-
-
13,800
-
-
-
-
-
7,848,612
8,680,523
300,000
900,000
-
-
-
3,900
9,900
Closing Balance
17,729,135
13,800
17,729,135
13,800
Unquoted Options Expiring 01 November 2026 @ $0.10
Consolidated
2023
No
2023
$
2022
$
2022
$
Issued for corporate advisory services
2,000,000
53,134
-
-
29
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 12. Equity - Share Option Reserve (continued)
The weighted average exercise price for option expiring 31 March 2024 is $0.15 per option. The remaining contractual life of
options outstanding at the end of the financial year was 0.3 years. (31 December 2022: 1.3 years)
The weighted average exercise price for option expiring 1 November 2026 is $0.10 per option. The remaining contractual life
of options outstanding at the end of the financial year was 2.8 years. (31 December 2022: NIL)
As at 31 December 2023, all options are exercisable as at the year end. (2022: all options are exercisable at year end)
Note 13. Key management personnel disclosures
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) or their related parties for the year ended 31 December 2023.
The total of remuneration paid to KMP of the Company and the Group during the period are as follows:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Short-term benefits
Consolidated
2023
$
2022
$
512,796
50,622
10,653
510,545
49,970
9,139
574,071
569,654
These amounts include fees and benefits paid to non-executive Directors or their related parties as well as all salary and paid
leave benefits awarded to executive Directors.
Post-employment benefits
These amounts are the current-year’s estimated costs of providing for the Group’s defined benefits scheme post-retirement,
superannuation contributions made during the period.
Other long-term benefits
These amounts represent long service leave benefits accruing during the period.
Note 14. Auditor's Remuneration
During the financial year the following fees were paid or payable for services provided by William Buck (VIC) Pty Ltd, the
auditor of the Company:
Audit services - William Buck (VIC) Pty Ltd
Audit or review of the financial statements
Note 15. Contingent Assets and Liabilities
Consolidated
2023
$
2022
$
38,000
36,727
As part of the terms and conditions of the acquisition of Spargoville Project, the Group has contingent liabilities amounting to
$150,000 worth of ordinary shares to be issued, subject to performance milestones being achieved, at a deemed issue price
per share equal to the VWAP of shares calculated over the 5 trading days immediately preceding the date of issue of the
shares.
30
Auric Mining Limited AND CONTROLLED ENTITIES
Notes to the consolidated financial statements
31 December 2023
Note 15. Contingent Assets and Liabilities (continued)
As part of the acquisition of the Spargoville Project, the Group has taken on the obligation to Breakaway Resources Pty Ltd
to a 1.5% net smelter royalty in respect of production from the tenements.
As part of the acquisition of the Neometals gold rights, the Group has taken on the obligation to Neometals Ltd to a 1% gross
royalty in respect of gold production from Tenement E15/1583.
The Company entered into a joint mining arrangement with BML Ventures Pty Ltd for the Jeffreys Find Gold Mine. The net
surplus (ie. surplus cash from the sale of product minus costs incurred by BML and toll milling costs in connection with
mining the Jeffreys Find Gold Mine) will be split AWJ 50%: BML 50%.
Note 16. Commitments
Tenement commitments: 0-1 year
Tenement commitments: 1-5 years
Tenement commitments: 5 years plus
Note 17. Related party transactions
a. Related Parties
Consolidated
2023
$
2022
$
189,900
796,500
62,000
733,900
1,378,000
74,400
1,048,400
2,186,300
The Group's main related parties are related to Key Management Personnel, identified as follows:
Steven Morris
Mark English
John Utley
b. Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available
to other parties unless otherwise stated. All transactions with key management personnel have been disclosed in the
Remuneration Report.
c. Amounts paid/ payable to related parties
The following transactions occurred with related parties:
Consolidated
2023
$
2022
$
Targo Holdings Pty Ltd, entity related to Steven Morris for services rendered
55,000
48,000
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
31
Auric Mining Limited AND CONTROLLED ENTITIES
Notes to the consolidated financial statements
31 December 2023
Note 18. Interests in Subsidiaries
a. Parents entities
Auric Mining Limited is the ultimate Australian Parent Entity.
b. Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group. The
proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary’s principal place of business
is also its country of incorporation.
Name
Widgie Gold Pty Ltd
Spargoville Minerals Pty Ltd
Jeffreys Find Pty Ltd
Chalice West Pty Ltd
Principal place of business /
Country of incorporation
Australia
Australia
Australia
Australia
Ownership interest
2022
2023
%
%
100%
100%
100%
100%
100%
100%
100%
100%
Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared
as at the same reporting date as the Group’s financial statements.
Note 19. Events after the reporting period
After the year ended 31 December 2023, the Company submitted 2 tenements applications to acquire E15/2069 and
E15/2073. The Company issued 2,000,000 unquoted options expiry 31 January 2028 exercisable at $0.15 and 2,000,000
unquoted options expiry 31 January 2029 exercisable at $0.225 to Canary Capital Pty Ltd (and nominees) as part of their
corporate advisory services provided to the Company.
No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect
the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future
financial years.
Note 20. Cash flow information
Reconciliation of profit/(loss) after income tax to net cash from/(used in) operating activities
Consolidated
2023
$
2022
$
Profit/(loss) after income tax expense for the year
1,313,644
(1,106,692)
Add back non-cash items:
Mining amortisation costs
Expenditure write off
Depreciation, amortisation and other non-cash items
Total
Change in operating assets and liabilities:
Increase in trade and other payables
Increase in other provisions
(Increase) in receivables and other current assets
Total
740,000
1,531,994
94,404
2,366,398
541,380
13,128
(10,652)
543,856
-
-
48,713
48,713
49,162
44,701
(96,433)
(2,570)
Net cash from/(used in) operating activities
4,223,898
(1,060,549)
32
Auric Mining Limited AND CONTROLLED ENTITIES
Notes to the consolidated financial statements
31 December 2023
Note 21. Earnings per share
Profit/(loss) after income tax attributable to the owners of Auric Mining Limited
1,313,644
(1,106,692)
Consolidated
2023
$
2022
$
Basic earnings per share profit/(loss)
Diluted earnings per share profit/(loss)
Cents
Cents
1.00
1.00
(1.10)
(1.10)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
130,859,591 100,446,241
Weighted average number of ordinary shares used in calculating diluted earnings per share
130,859,591 100,446,241
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Auric Mining Limited, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Options have not been included as they are anti-dilutive.
Note 22. Financial Risk Management
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.
The totals for each category of financial instruments, measured in accordance with AASB 9: Financial Instruments as detailed
in the accounting policies to these financial statements, are as follows:
Financial assets
Financial assets at amortised cost
Cash and cash equivalents
Other receivables
Term deposits
Other
Total financial assets
Financial liabilities
Financial liabilities at amortised cost
Other payables
33
Consolidated
2023
$
2022
$
2,492,720
-
2,000,000
144,153
817,524
78,940
1,200,000
225,639
4,636,873
2,322,103
Consolidated
2023
2022
1,376,075
441,732
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 22. Financial Risk Management (continued)
Financial Risk Management Policies
The Board monitors the Group’s financial risk management policies and exposures and approves financial transactions within
the scope of its authority. It also reviews the effectiveness of internal controls relating to commodity price risk, counterparty
credit risk, foreign currency risk, liquidity risk and interest rate risk.
The overall risk management strategy seeks to assist the Consolidated Entity in meeting its financial targets, while minimising
potential adverse effects on financial performance. Its functions include the review of the use of credit risk policies and future
cash flow requirements.
Specific financial risk exposures and management
The main risks the Group is exposed to through its financial instruments are credit risk and liquidity risk. There are no
substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies
and processes for managing or measuring the risks.
a. Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the Group.
Due to the current nature of the Group, being an exploration entity, the Group is not exposed to material credit risk.
b. Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity
risk management framework for the management of the Group's short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves and by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a period of 60 days. The
financial liabilities of the Group include trade and other payables as disclosed in the statement of financial position. All trade
and other payables are non-interest bearing and due within 30 days of the reporting date.
The following table reflects an undiscounted contractual maturity analysis for financial assets and financial liabilities.
Financial liability and financial asset maturity analysis
Consolidated Entity 2023
Financial liabilities due for payment
Other payables
Provision
Lease liability
Employee benefits
Total expected outflows
Financial assets – cash flows realisable
Cash and cash equivalents
Other receivables
Term Deposit
Total anticipated inflows
Within 1 Year 1 to 5 Years
$
$
Total
$
(958,187)
-
(24,271)
(85,633)
(1,068,091)
-
(200,000)
(69,453)
(38,531)
(307,984)
(958,187)
(200,000)
(93,724)
(124,164)
(1,376,075)
2,492,720
144,153
2,000,000
4,636,873
-
-
-
-
2,492,720
144,153
2,000,000
4,636,873
Net inflow/(outflow) on financial instruments
3,568,782
(307,984)
3,260,798
34
Auric Mining Limited and Controlled Entities
Notes to the consolidated financial statements
31 December 2023
Note 22. Financial Risk Management (continued)
Consolidated Entity 2022
Financial liabilities due for payment
Other payables
Lease liability
Employee benefits
Total expected outflows
Financial assets – cash flows realisable
Cash and cash equivalents
Other receivables
Term Deposit
Total anticipated inflows
Within 1 Year 1 to 5 Years
$
$
Total
$
(222,761)
(22,410)
(80,099)
(325,270)
-
(93,724)
(22,738)
(116,462)
(222,761)
(116,134)
(102,837)
(441,732)
817,524
304,579
1,200,000
2,322,103
-
-
-
-
817,524
304,579
1,200,000
2,322,103
Net inflow/(outflow) on financial instruments
1,996,833
(116,462)
1,880,371
Fair value estimation
The fair values of financial assets and financial liabilities are presented above and can be compared to their carrying values
as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or
a liability settled, between knowledgeable, willing parties in an arm's length transaction.
Financial instruments whose carrying value is equivalent to fair value due to their nature include:
Cash and cash equivalents;
Other receivables; and
Other payables
Note 23. Company Details
The registered office and principal place of business of the Company is:
Auric Mining Limited
Level 1, 1 Tully Road
East Perth WA 6004
35
Auric Mining Limited and Controlled Entities
Directors' declaration
31 December 2023
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the Company's and Consolidated Entity's financial
position as at 31 December 2023 and of their performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable, as disclosed in note 1 of the financial statements.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mark English
Managing Director
21 March 2024
Perth WA
36
Auric Mining Limited and Controlled Entities
Independent auditor's report to the members of Auric Mining Limited
Independent auditor’s report to the members of Auric Mining
Limited
Report on the audit of the financial report
Our opinion on the financial report
In our opinion, the accompanying financial report of Auric Mining Limited (the Company) and its
subsidiaries (the Group) is in accordance with the Corporations Act 2001, including:
— giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its
financial performance for the year then ended; and
— complying with Australian Accounting Standards and the Corporations Regulations 2001.
What was audited?
We have audited the financial report of the Group, which comprises:
— the consolidated statement of financial position as at 31 December 2023,
— the consolidated statement of profit or loss and other comprehensive income for the year then ended,
— the consolidated statement of changes in equity for the year then ended,
— the consolidated statement of cash flows for the year then ended,
— notes to the financial statements, including material accounting policy information, and
— the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
37
Auric Mining Limited and Controlled Entities
Independent auditor's report to the members of Auric Mining Limited
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Capitalisation
of exploration
and evaluation
costs
Area of focus
(refer also to notes 1, 7 & 10)
How our audit addressed the
key audit matter
The Group has incurred exploration and
evaluation costs for exploration projects in
Australia of $2,183,644 for the year ended
31 December 2023 which includes costs
for the provisioning for the rehabilitation of
Jeffreys Find of $200,000 as a result of
this project going into production. The
Group has elected to capitalise all these
costs as a non-current asset in the
Statement of Financial Position in
accordance with the Group’s accounting
policies. As a result of the Jeffreys Find
project going into production, the
capitalised expenditure with respect to
this project has been amortised by
$740,000 with respect to the rate of
depletion of the economically recoverable
reserves.
There is a risk that the Group may lose or
relinquish its rights to explore and
evaluate those areas of interest and
therefore amounts capitalised to the
Statement of Financial Position from the
current and historical periods, be no
longer recoverable. Therefore, we
considered this to be a key audit matter.
During the year an impairment charge of
$1,531,994 was recognised in the
Statement of Profit or Loss and Other
Comprehensive Income relation to
exploration and evaluation projects which
were relinquished or ceased exploration
during the year.
Our audit procedures included:
— Understanding and vouching the
underlying contractual entitlement to
explore and evaluate each area of
interest, including an evaluation of the
Group’s purchase in that area of
interest at its expiry;
— Examining project spend per each
area of interest and comparing this
spend to the minimum expenditure
requirements set out in the underlying
exploration expenditure plan;
— Examining project spend to each area
of interest to ensure that it is directly
attributable to that area of interest;
— Assessing the report prepared by
management’s expert to determine
the provision for rehabilitation costs
as well as the credentials of the
expert that prepared it;
— Assessing the amortisation charge
recognised with respect to the costs
capitalised on the Jeffreys Find
project as a result of commencing
production;
— Assessing the impairment charge
recognised on the tenement projects
that were relinquished during the
year;
— From an overall perspective,
comparing the market capitalisation of
the Group to the net carrying value of
its assets of the Statement of
Financial Position to identify any
additional indicators of impairment;
and
— Assessing the adequacy of the
Group’s disclosures in the financial
report.
38
Auric Mining Limited and Controlled Entities
Independent auditor's report to the members of Auric Mining Limited
Revenue
recognition
Area of focus
(refer also to note 1)
How our audit addressed the
key audit matter
The Group has generated revenue by way
of gold sales during the year. As part of
their joint mining arrangement with BML
Ventures Pty Ltd on the Jeffreys Find
project, the Group is entitled to receive
50% of the net surplus cash from the sale
of gold, less costs incurred by BML
Ventures Pty Ltd in respect to the mining of
this project.
There is a risk that the Group may not
have recognised their entitlement of
surplus cash generated from the gold
sales. Therefore, we consider this to be a
key audit matter.
$4,766,039 of revenue was generated
through gold sales during the year.
Our audit procedures included:
— Reviewing the joint mining agreement
between the Group and BML
Ventures Pty Ltd to understand the
terms of the arrangement;
— Assessing the calculation of the final
agreed profit share between the
Group and BML Ventures Pty Ltd;
— Agreeing the receipts of the Group’s
entitlement to bank statement;
— Performed cut off testing to ensure
that the revenue had been recognised
in the correct period under AASB 15
Revenue from Contracts with
Customers; and
— Assessing the adequacy of the
Group’s disclosures in the financial
report.
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 31 December 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Group are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
39
Auric Mining Limited and Controlled Entities
Independent auditor's report to the members of Auric Mining Limited
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Our opinion on the Remuneration Report
In our opinion, the Remuneration Report of Auric Mining Limited, for the year ended 31 December 2023,
complies with section 300A of the Corporations Act 2001.
What was audited?
We have audited the Remuneration Report included in the directors’ report for the year ended 31
December 2023.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
J. C. Luckins
Director
Melbourne, 21 March 2024
40
Auric Mining Limited and Controlled Entities
Shareholder information
31 December 2023
The shareholder information set out below was applicable as at 27 February 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Listed Options Expired
31/03/2024 @ $0.15
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
17
60
128
401
206
812
68
-
0.16
0.81
13.40
85.63
-
1
14
30
56
-
0.02
0.58
9.00
90.40
100.00
101
100.00
-
28
-
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
issued
Number held
R J & A INVESTMENTS PTY LTD (MULLER MORVAN FAMILY A/C)
SRSHGS PTY LTD (SRS FAMILY A/C)
13 NOMINEES PTY LTD (MEES SUPER FUND A/C)
MR PATRICK MICHAEL LOUGHNAN
ANAMORPH PTY LTD (UTLEY FAMILY A/C)
BOND STREET CUSTODIANS LIMITED (RPRIN1 - C48660 A/C)
MR STEVEN JOHN MORRIS + MS NICOLE LEANNE MORRIS (MORRIS FAMILY SUPER
FUND A/C)
CITICORP NOMINEES PTY LIMITED
RISHON HOLDINGS PTY LTD
TARGO HOLDINGS PTY LTD
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT)
13 NOMINEES PTY LTD (MEES SF A/C)
MR WARRICK GEOFFREY CANNON + MRS LORNA HAZEL CANNON (WACKLORN SF
A/C)
MR NICOLAI IWANOFF + MRS CHRISTINE ANN IWANOFF
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
140 HOLDINGS PTY LTD (THE HACKNEY A/C)
MR STEVEN JOHN MORRIS
MR PAUL JAMES MADDEN
MR WILLIAM DONALD LLOYD
LYTTON NOMINEES PTY LTD (LYTTON SUPER FUND A/C)
6,958,333
5,125,100
5,031,667
4,350,000
4,198,301
2,778,365
2,423,465
2,342,428
2,312,500
2,215,185
2,168,333
2,000,000
2,000,000
1,600,000
1,500,100
1,500,000
1,150,000
1,111,112
1,083,333
5.32
3.92
3.85
3.32
3.21
2.12
1.93
1.85
1.79
1.77
1.69
1.66
1.53
1.53
1.22
1.15
1.15
0.88
0.85
0.83
Totals: Top 20 holders of Ordinary Fully Paid Shares
Others
Total
54,369,055
76,490,536
130,859,591
41.55
58.45
100.00
41
Auric Mining Limited and Controlled Entities
Shareholder information
31 December 2023
LISTED OPTIONS EXPIRING 31 March 2024 @ $0.15
MR SHANE ANTHONY MATCHETT + MRS MELITA ANGELA MATCHETT (SA MA
MATCHETT S/F A/C)
MR SHANE ANTHONY MATCHETT + MS MELITA ANGELA MATCHETT (SA & MA
MATCHETT SUPER A/C)
ALTOR CAPITAL MANAGEMENT PTY LTD (ALTOR ALPHA FUND A/C)
MR DARYL CHRISTIAN BRYON + MRS ELIZABETH SUE BRYON
MR GREGORY WILLIAM JUDE (THE JUDE FAMILY A/C)
MANAPOURI INVESTMENTS PTY LTD
MR THOMAS CHRISTIAN BLEAKLEY
BILL BROOKS PTY LTD (BILL BROOKS SUPER FUND A/C)
ROSDAREM INVESTMENTS PTY LTD (MAPLESON SUPER FUND A/C)
13 NOMINEES PTY LTD (MEES SF A/C)
LAZARUS CAPITAL (VIC) PTY LTD
R J & A INVESTMENTS PTY LTD (ACME SUPER FUND A/C)
R J & A INVESTMENTS PTY LTD (MULLER MORVAN FAMILY A/C)
ANAMORPH PTY LTD (UTLEY FAMILY A/C)
BARNETT PENSION PTY LTD (BARNETT PENSION FUND A/C)
ANNA BATTERS
MS MEGAN LOUISE CARTER
MR LENNIE FRANKLIN DAVID
MR ROBERT RUSSELL DAWSON
J F BYRNES SUPER PTY LTD (ARGOON AVENUE S/F A/C)
Options over Ordinary
shares
% of total
Shares
issued
Number held
1,234,941
1,103,333
1,041,667
1,000,000
500,000
487,769
425,751
347,222
347,222
333,340
300,000
250,000
250,000
208,333
208,333
208,333
208,333
208,333
208,333
208,333
7.34
6.56
6.19
5.94
2.97
2.90
2.53
2.06
2.06
1.98
1.78
1.49
1.49
1.24
1.24
1.24
1.24
1.24
1.24
1.24
Totals: Top 20 holders of LISTED OPTIONS EXPIRING 31/03/2024 @ $0.15
Others
Total
9,079,576
7,749,559
16,829,135
53.95
46.05
100.00
Unquoted equity securities
Unquoted Options and Performance Rights issued over Ordinary Shares:
OPT Exp 31/03/2024 @$0.150
OPT Exp 1/11/2026 @$0.100
OPT Exp 31/01/2028 @$0.150
OPT Exp 31/01/2029 @$0.225
Total
Number
on issue
Number
of holders
900,000
2,000,000
2,000,000
2,000,000
6,900,000
2
6
6
6
20
The following persons hold 20% or more of unquoted equity securities:
Name
Mersound Pty Ltd
Anna Carina Pty Ltd
(Anna Carina Family Trust)
Total
Class
Number held
OPT Exp 1/11/2026 @$0.100
OPT Exp 31/01/2028 @$0.150
OPT Exp 31/01/2029 @$0.225
OPT Exp 1/11/2026 @$0.100
OPT Exp 31/01/2028 @$0.150
OPT Exp 31/01/2029 @$0.225
800,000
800,000
800,000
800,000
800,000
800,000
4,800,000
42
Auric Mining Limited and Controlled Entities
Shareholder information
31 December 2023
Substantial holders
Fully Paid Ordinary Shares
As at 27 February 2024, the Substantial Holders of the Group and number of equity securities in which those substantial
holders and their associates have a relevant interest are as follows:
AARON AND CHRISTINE MULLER & RELATED PARTIES
MARK ENGLISH AND ELIZABETH SAUNDERS & RELATED PARTIES
JOHN UTLEY & RELATED PARTIES
STEVEN AND NICOLE MORRIS & RELATED PARTIES
Ordinary shares
% of total
shares
issued
Number held
7,458,333
6,681,767
6,420,000
6,225,000
5.70
5.89
5.66
5.48
Relevant interest arising from a restriction on disposal of shares due to ASX imposed escrow, as notified to ASX.
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Options
No voting rights.
There are no other classes of equity securities.
43