MEDIA RELEASE
Austral Gold Limited
28 March 2024
Austral Gold Files 2023 Annual Report
Established gold producer Austral Gold Limited (Austral or the Company) (ASX: AGD; TSX-V:
AGLD; OTCQB: AGLDF) is pleased to announce that it has filed its Annual Report for the year
ended 31 December 2023 (“FY23”). The complete Report is available under the Company’s profile
at www.asx.com.au, www.sedar.com, https://www.otcmarkets.com, and on the Company’s website
at www.australgold.com/.
About Austral Gold
Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in
the Americas. Austral continues to lay the foundation for its growth strategy by advancing its
attractive portfolio of producing and exploration assets. For more information, please visit the
Company’s website at www.australgold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva.
For more information, please contact:
Jose Bordogna
Chief Financial Officer
Phone: +61 466 892 307
jose.bordogna@australgold.com
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | info@australgold.com | www.australgold.com
Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements. Forward-
looking statements are statements that are not historical, and consist primarily of projections - statements
regarding future plans, expectations and developments. Words such as "expects", "intends", "plans",
"may", "could", “potential”, "should", "anticipates", "likely", "believes" and words of similar import tend to
identify forward-looking statements. Forward-looking statements in this news release include Austral
continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and
exploration assets.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ from those expressed or implied, including, without
limitation, business integration risks; uncertainty of production, development plans and cost estimates,
commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations,
the state of the capital markets especially in light of the effects of the novel coronavirus, uncertainty in the
measurement of mineral reserves and resource estimates, Austral’s ability to attract and retain qualified
personnel and management, potential labour unrest, reclamation and closure requirements for mineral
properties; unpredictable risks and hazards related to the development and operation of a mine or mineral
property that are beyond the Company’s control, the availability of capital to fund all of the Company’s
projects and other risks and uncertainties identified under the heading “Risk Factors” in the Company’s
continuous disclosure documents filed on the ASX and on SEDAR. You are cautioned that the foregoing
list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you
that actual events, performance or results will be consistent with these forward-looking statements, and
management’s assumptions may prove to be incorrect. Austral’s forward-looking statements reflect current
expectations regarding future events and operating performance and speak only as of the date hereof and
Austral does not assume any obligation to update forward-looking statements if circumstances or
management’s beliefs, expectations or opinions should change other than as required by applicable law.
For the reasons set forth above, you should not place undue reliance on forward-looking statements.
2
Unique Value Proposition for
Gold Production, Exploration
and Investments in the Americas
2023Annual Report for the year ended 31 December 2023
www.australgold.com
TABLE OF CONTENTS
Corporate Directory
Value Proposition
Chair’s Letter
Key Principles
Mineral Reserves and Resources
Review of Activities
Directors’ Report
Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Additional Information
4
6
10
12
18
24
34
68
106
108
110
118
Austral Gold Limited
3
Annual Report 2023
CORPORATE DIRECTORY
AUDITORS
KPMG
www.kpmg.com.au
LISTED
Australian Securities Exchange
ASX: AGD
TSX Venture Exchange
TSXV: AGLD
OTC Bulletin Board
OTCQB: AGLDF
PLACE OF INCORPORATION:
Western Australia
KEY MANAGEMENT
Stabro Kasaneva
Chief Executive Officer and Executive
Director
Rodrigo Ramirez
Vice President of Operations
Jose Bordogna
Chief Financial Officer
Raul Guerra*
Former Vice President of Exploration
DIRECTORS
Eduardo Elsztain
Chair & Non-Executive Director
Wayne Hubert**
Former Chair & Executive Director
Saul Zang
Non-Executive Director
Pablo Vergara del Carril
Non-Executive Director
Stabro Kasaneva
Chief Executive Officer and
Executive Director
Robert Trzebski
Independent Non-Executive Director
Ben Jarvis
Independent Non-Executive Director
COMPANY SECRETARY
Chelsea Sheridan
Automic Group
REGISTERED OFFICE
Level 5 126 Phillip Street
Sydney NSW 2000
Tel: +61 2 9380 7233
Email: info@australgold.com
Web: www.australgold.com
OTHER OFFICES
Santiago, Chile
Lo Fontecilla 201 of. 334
Santiago, Chile
Tel: +56 (2) 2374 8560
Buenos Aires, Argentina
Bolivar 108
Buenos Aires (1066) Argentina
Tel: +54 (11) 4323 7500
Fax: +54 (11) 4323 7591
Vancouver, Canada
170-422 Richards Street
Vancouver, BC V6B 2Z4
Tel: +1 604 868 9639
SHARE REGISTRIES
Computershare Investor Services Australia
GPO Box 2975
Melbourne VIC 3001
Tel: 1300 850 505 (within Australia)
Tel: +61 3 9415 5000 (outside Australia)
Computershare Investor Services Canada
510 Burrard Street, 2nd Floor
Vancouver, BC V6C 3B9
Tel: +1 604 661 9400
Fax: +1 604 661 9549
*resigned effective 31 January 2023
**retired effective 30 May 2023
Austral Gold Limited
4
Annual Report 2023
Austral Gold Limited
5
Annual Report 2023
VALUE PROPOSITION
GOLD PRODUCTION
Profitable operations delivering positive cash flow since 2012.
Installed production capacity with two agitation and heap leaching
plants in Argentina and Chile.
GOLD EXPLORATION
Targeting high and low sulfidation epithermal gold and silver deposits
in a high-quality land portfolio.
Strategically located in well-known gold mineral endowments
in the Americas.
MINING INVESTMENTS
Expanding exposure through equity investments in public and
private mining companies.
Seeking strategic alliances with other mining companies to leverage
and accelerate growth.
Austral Gold Limited
6
Annual Report 2023
Unique Exposure to Gold Production,
Exploration, and Investments
in the Americas
Austral Gold Limited
7
Annual Report 2023
MINING PORTFOLIO
Located in rich mineral endowments
South America
PALEOCENE BELT, CHILE
Guanaco/Amancaya Mines
100% Ownership
Production | Exploration
MIOCENE BELT,
ARGENTINA
Pampa Metals
3% Ownership
Piuquenes Project
DESEADO MASSIF,
ARGENTINA
Sierra Blanca Project
51% Ownership
Exploration
TRIASSIC CHOIYOI BELT,
ARGENTINA
Casposo-Manantiales
100% Ownership
Care & Maintenance | Exploration
INDIO BELT, ARGENTINA
Jagüelito Project
50% Option
Exploration
DESEADO MASSIF,
ARGENTINA
Unico Silver
17% Ownership
Cerro Leon Project
Operations
Exploration
Equity investments
Austral Gold Limited
8
Annual Report 2023
United States
WALKER LINE, UTAH
Rawhide Mine
25% Ownership
Restructuring*
CARLIN TREND, NEVADA
Ensign Minerals
12% Ownership
Exploration
Equity investments
* On 20 December 2023 (the “ Petition Date “) Rawhide Mining LLC filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code.
Austral Gold Limited
9
Annual Report 2023
LETTER FROM
NON-EXECUTIVE CHAIR
Austral Gold Limited
10
Annual Report 2023
ON BEHALF OF THE BOARD OF DIRECTORS OF AUSTRAL
GOLD LIMITED (“AUSTRAL” OR THE “COMPANY”), I AM
PLEASED TO PRESENT OUR ANNUAL REPORT FOR THE
FINANCIAL YEAR ENDING 31 DECEMBER 2023 (“FY23”).
Outlook for FY24: Looking ahead to FY24, we project total produc-
tion of 26,000 to 28,000 GEOs, with approximately 80% to be
sourced from the Heaps Project. Our operational plan involves inte-
grating agitation leaching and heap leaching processes, utilising
material from the Heaps, as well as remaining ore and stocks from
our Amancaya and Guanaco mines. Our technical team anticipates
improved profitability margins and enhanced cash flow generation,
with projected average Cash Costs (C1) ranging from US$1,300-
US$1,450 per GEO, and All-in-Sustaining Costs (AISC) in the
range US$1,300-US$2,283 and an annual average of US$1,533
per GEO. We expect that 2024 production, combined with favorable
gold and silver prices, will improve our liquidity ratios by increasing
internal cash generation and gradually reducing the Company’s debt
to our supportive lenders and vendors. The decrease in projected
AISC primarily results from expected lower sustaining capital expen-
diture needs, as production is forecast to be primarily sourced from
the Heaps Project rather than the underground mines.
The fundamental strength of gold and silver prices, supported
by expectations of a decrease in interest rates and sustained
government deficit spending, remain positive factors for our
business in 2024 and the long term.
We are proud that 2024 will be our 14th consecutive year of
production at Guanaco, which commenced in late 2010. During
this period, we have produced over half a million gold ounces. As
we look ahead to the next year, our primary focus will continue to
be on production and exploiting additional value-added opportuni-
ties. Specifically, we are committed to restarting operations at the
Casposo-Manantiales mine complex in Argentina. Our dedicated
technical team is diligently exploring various scenarios to drive
this initiative forward.
Finally, we express our gratitude to our shareholders for their
unwavering support, our employees, contractors, communities,
and Board members for their contributions throughout the year.
We also acknowledge the retirement of former Executive Chair,
Wayne Hubert, in FY23, and commend him for his significant and
lasting impact on the Company.
Yours sincerely,
EDUARDO ELSZTAIN
Non-Executive Chair
This report outlines our efforts to generate value for stakeholders
and highlights advancements in our three strategic pillars: Produc-
tion, Exploration, and Equity Investments. Our commitment to
the well-being of our employees and communities, coupled with
the promotion of the highest health, safety, and environmental
standards underpins all our activities.
In FY23, we continued to make significant capital investments in
our flagship project, Guanaco/Amancaya in Chile. We transitioned
to the new Heap Reprocessing Project (the Heaps Project),
and conducted drilling campaigns at our key assets in Argentina.
These assets include: the Casposo/Manantiales Mine Complex
and the advanced exploration project, Jaguelito, where we have
an option to acquire 50%.
These actions reflect our commitment to advancing our value
proposition of maintaining sustainable mining operations to
support exploration activities and organic growth. The completion
of the Heaps Project construction, despite delays communicated
to our stakeholders over the past 12 months, marks a crucial
milestone, confirming the extended life of the project until 2033(1).
Production: During FY23, Guanaco/Amancaya delivered total
production of 24,879 gold-equivalent ounces (GEOs) at an
adjusted gross profit of US$6,557 thousand and a 13.7% margin
(excluding depreciation and amortization). Production was lower
than our initial 2023 guidance of 34,000-38,000 GEOs as we
initially projected the Heaps Project to contribute 7,000 to 9,000
GEOs during the second half of 2023, but 2023 production from
the Heaps Project was 496 GEOs, primarily due to operational
issues, including technical challenges in the implementation and
ramp-up of operations. The Company is actively addressing these
issues and expects to resolve them in early 2024.
Exploration: On the exploration front, we successfully completed
two drilling campaigns, covering a total of over 8,000 meters
between Casposo/Manantiales and Jaguelito in the province
of San Juan, Argentina. These campaigns yielded positive results,
opening further opportunities for continued exploration in these
areas. Specifically, we are working towards obtaining a new inde-
pendent Mineral Resource Estimate (MRE) for the Casposo/
Manantiales project as part of our strategic plan to restart opera-
tions there.
Equity Investments: In FY23, our Equity Investments pillar also
played a crucial role in the sale of SCRN Properties Ltd, owner
of the Pingüino Project, to ASX Listed Unico Silver Limited
(“Unico”). Total consideration for this strategic transaction was
approximately US$10 million, comprising US$5 million in cash,
shares, and options of Unico. As a result of in this sale, we hold
a ~17% interest as of 31 December 2023, allowing us to benefit
from any potential increase in the value of Unico Silver. Addition-
ally, we retained options to buy back a 2% NSR Royalties over
the Project.
(1) see notes to mineral resources & ore reserves statement on page 23
Austral Gold Limited
11
Annual Report 2023
KEY PRINCIPLES
Austral Gold Limited
12
Annual Report 2023
Be socially and
environmentally
responsible and
strive to reduce
safety risks and
operating costs
Be the preferred
partner for commu-
nities, governments
and companies to
operate and explore
precious metal proj-
ects in the Americas
MAXIMISE VALUE
CREATION FOR
STAKEHOLDERS
Austral Gold Limited
13
Annual Report 2023
PATHWAY TO AN ESTABLISHED
GOLD PRODUCER
+ 10 Years | + 500,000 gold ounces produced
CONSISTENT JOURNEY DELIVERING PRODUCTION
600,000
500,000
400,000
300,000
200,000
100,000
Acquired
Guanaco
Project
Started Open Pit
and Heap Leaching
Operations at
Guanaco
Acquired
Amancaya
Project
Development
of Guanaco
Project
Started UG
Mining at
Guanaco
2008 2009 2010 2011
2012 2013 2014 2015
Austral Gold Limited
14
Annual Report 2023
* See notes to the mineral
resources & ore reserves
statement on page 22
Constructed Agitation
Leaching Plant at the
Guanaco-Amancaya
Cluster
Placed Casposo
on Care &
Maintenance
Acquired
Casposo
Mine and
re-started
operations
Launched Drilling
Program at
Casposo-Manantiales
with the strategic
objective to restart
operations
Completed
Construction
of the Heap
Reprocessing
project at
Guanaco-
Amancaya
Started Mining
at Amancaya
Acquired Exploration
Rights of Manantiales
Property adjacent
to Casposo
Extended Gua-
naco-Amancaya
LOM to 2033
(10 Years) *
2016
2017
2018
2019
2020
2021
2022
2023
Austral Gold Limited
15
Annual Report 2023
CASH FLOW FROM OPERATIONS
INVESTED IN GROWTH
STRONG M&A TRACK-RECORD
2013
2014 2016
2017
2019
15% Private Placement
in Goldrock Mines
20% Private Placement
in Argentex Mining
Acquisition of
Amancaya Project
from Yamana Gold
Acquisition of U/G
mining contractor
Purchase of Kinross
NPI Royalty on
Guanaco
Acquisition of
remaining interest
in Casposo Mine
22% Private Placement
in Rawhide mine
(Nevada, US)
51% Acquisition of
Casposo Mine from
Troy Resources
Friendly takeover
of Argentex Mining
Secondary listing of
Austral on the TSXV
Sold interest in
Goldrock Mines
Acquisition of two Projects
from Revelo Resources
(stock transaction)
Additional 19% Acquisition
of Casposo Mine
Austral Gold Limited
16
Annual Report 2023
2020
2021
2022
2023
Earn-in Agreement
to acquire up to 100%
of the Sierra Blanca
project adjacent to
Pinguino
Friendly takeover
of Revelo Resources
(stock and cash
transaction)
~20% Private Placement
in Ensign Minerals
(Utah, US)
Agreement to enter
into a JV with Mexplort
to explore projects in
the Indio Belt (San Juan
province, Argentina)
plus an earn-in agree-
ment to acquire 50% of
the Jaguelito Project
Completed the sale of SCRN
Properties (owner of Pingui-
no) to ASX listed Unico Silver
Limited for approx. US$10M
comprising cash, shares and
options
Austral Gold Limited
17
Annual Report 2023
MINERAL RESERVES
AND RESOURCES
Austral Gold Limited
18
Annual Report 2023
TABLE 1: SUMMARY OF MINERAL RESERVES
31 December 2023
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya Mines
Underground
Proven
Probable
P + P
Open Pit
Proven
Probable
P + P
Heap
Proven
Probable
P + P
Total Proven
Total Probable
Total P + P
See notes to Mineral Reserves on page 22.
2
3
5
-
1,607
1,607
10,082
-
10,082
10,084
1,611
11,694
2.81
4.26
3.74
Inesperada
-
1.05
1.05
Heap Reprocessing Project
0.67
-
0.67
Total
0.67
1.06
0.72
5.32
8.34
7.27
-
14.39
14.39
3.15
-
3.15
3.15
14.38
4.70
0
0
0
-
54
54
217
-
217
217
55
272
0
1
1
-
744
744
1,022
-
1,022
1,022
745
1,767
Austral Gold Limited
19
Annual Report 2023
TABLE 2: SUMMARY OF MINERAL RESOURCES
31 December 2023
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya Mines
Underground
Measured
Indicated
M + I
Inferred
Open Pit
Measured
Indicated
M + I
Inferred
Heap
Measured
Indicated
M + I
Inferred
Total Measured
Total Indicated
Total M + I
Total Inferred
See notes to Mineral Resources on page 22.
586
947
1,533
350
-
1,682
1,682
74
11,259
-
11,259
1,907
11,845
2,630
14,474
2,331
2.66
2.60
2.62
4.15
Insperada
-
1.05
1.05
0.91
Heap Reprocessing Project
0.67
-
0.67
0.55
Total
0.77
1.61
0.92
1.10
12.69
17.06
15.39
8.25
-
14.38
14.38
12.40
3.09
-
3.09
2.64
3.56
15.35
5.70
3.79
50
79
129
47
-
57
57
2
242
-
242
34
292
136
428
82
239
520
759
93
-
778
778
30
1,118
-
1,118
162
1,357
1,298
2,655
284
Austral Gold Limited
20
Annual Report 2023
TABLE 3: SUMMARY OF MINERAL RESERVES
31 December 2022
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya Mines
Underground
Proven
Probable
P + P
Open Pit
Proven
Probable
P + P
Heap
Proven
Probable
P + P
Total Proven
Total Probable
Total P + P
See notes to Mineral Reserves on page 22.
32
116
148
-
1,607
1,607
10,189
-
10,189
10,221
1,723
11,945
5.81
5.84
5.83
Inesperada
-
1.05
1.05
Heap Reprocessing Project
0.68
-
0.68
Total
0.69
1.37
0.79
14.42
16.94
16.40
-
14.39
14.39
3.16
-
3.16
3.20
14.56
4.84
6
22
28
-
54
54
221
-
221
227
76
303
15
63
78
-
744
744
1,037
-
1,037
1,052
807
1,859
Austral Gold Limited
21
Annual Report 2023
TABLE 4: SUMMARY OF MINERAL RESOURCES
31 December 2022
Classification
Underground
Measured
Indicated
M + I
Inferred
Open Pit
Measured
Indicated
M + I
Inferred
Heap
Measured
Indicated
M + I
Inferred
Total Measured
Total Indicated
Total M + I
Total Inferred
Tonnes
(000 t)
594
1,009
1,604
402
-
1,682
1,682
74
11,366
-
11,366
1,907
11,961
2,692
14,652
2,383
Grade
Contained Metal
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya Mines
2.77
3.12
2.99
4.20
Insperada
-
1.05
1.05
0.91
Heap Reprocessing Project
0.67
-
0.67
0.55
Total
0.78
1.82
0.97
1.18
13.00
17.98
16.14
8.51
-
14.38
14.38
12.40
3.10
-
3.10
2.64
3.59
15.73
5.82
3.93
53
101
154
54
-
57
57
2
246
-
246
34
299
158
457
90
248
584
832
110
-
778
778
30
1,133
-
1,133
162
1,381
1,362
2,743
301
Notes to Mineral Reserves:
1. Mineral Reserves follow CIM (2014) definitions and are compliant with the JORC Code.
Mineral Reserves are reported on a 100% ownership basis and estimated at the
2.
following cut-off grades:
• Amancaya: break-even cut-off grade of 3.04 g/t AuEq, and marginal cut-off grades of
2.37 g/t AuEq and 1.37 g/t AuEq for SLS stopes and drifts respectively.
• Inesperada - pit discard cut-off grade of 0.40 g/t Au.
• Heap Leach Pads - Marginal cut-off grades for Heap Reprocessing have been
estimated as 0.20 g/t Au and 0.15 g/t Au for Heaps I and Heap II respectively, and at
zero cut-off for Heaps III.
3.
4.
Mineral Reserves are estimated using an average long term gold price of US$1,700/oz
and silver price of US$22/oz.
Amancaya AuEq was calculated as AuEq = Au + 0.0110 x Ag, based on prices of
US$1,700/oz Au and US$22/oz Ag and recoveries of Au and Ag of 93% and 79%,
respectively.
5. The following parameters were used for the Amancaya Mineral Reserve estimate:
• A minimum mining width of 1.5 m was used for SLS stopes and 3.5 m for drifts.
• Stope dilution: 0.5 m in the hanging wall and 0.5 m in the footwall (1.0 m total).
• Drift dilution: 0.25 m in each of the side walls (0.5 m total).
6. Metallurgical recovery is 93% for gold and 79% for silver.
7. Bulk density is 2.5 t/m3.
8. The following parameters were used for the Inesperada Mineral Reserve estimate:
• Dilution and mining recovery factors of 0% and 100% respectively were applied.
• Metallurgical recovery is 80% for gold.
• Bulk density is 2.44 t/m3.
The following parameters were used for the Mineral Reserve estimate for the Guanaco
Heaps:
• Heap Leach Pad I: maximum of 5% dilution. The average dilution over the LOM is
9.
3.5%. Dilution grades are 0.18 g/t Au and 1.50 g/t Ag.
• Heap Leach Pad II: maximum of 5% dilution. The average dilution over the LOM is
2.5%. Dilution grades are 0.13 g/t Au and 1.40 g/t Ag.
• Heap Leach Pad III: All internal dilution within the heap limits was included.
Notes to Mineral Resources:
1.
Mineral Resources followed CIM (2014) definitions and are compliant with the
JORC Code.
2. Mineral Resources are reported on a 100% ownership basis.
3. Mineral Resources are inclusive of Mineral Reserves.
4.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
5. Mineral Resources are estimated at the following cut-off grades:
• Amancaya and Guanaco underground Mineral Resources: 2.90 g/t AuEq and
1.50 g/t AuEq, respectively.
• Inesperada open pit Mineral Resources: 0.38 g/t Au.
• Heap Leach Pads Mineral Resources: zero cut-off grade – the entire volume is
included.
6.
Mineral Resources at Guanaco and Amancaya are estimated using a long-term
gold price of US$1,750/oz and a silver price of US$22/oz. Mineral Resources at
Inesperada and Heap Leach Pads are estimated using a long-term gold price of
US$1,750/oz.
7. Gold equivalency (AuEq) was calculated as follows:
• Guanaco: AuEq = Au + 0.0106 x Ag based on a gold and silver price of $1,750/
oz and $22/oz respectively and recoveries of gold and silver of 95% and 80%,
respectively.
• Guanaco: AuEq = Au + 0.0106 x Ag based on a gold and silver price of $1,750/
oz and $22/oz respectively and recoveries of gold and silver of 95% and 80%,
respectively.
• Amancaya: AuEq = Au + 0.0107 x Ag based on a gold and silver price of
$1,750/oz and $22/oz respectively and recoveries of gold and silver of 93%
and 79%, respectively.
8.
9.
Metallurgical recoveries are 93% for gold and 79% for silver for Amancaya, 95%
for gold and 80% for silver for Guanaco, 80% for gold for Inesperada, and 54%,
70%, and 46% for gold for Heaps I, II, and II, respectively.
A minimum mining width of 1.5 m is used for resource underground shapes for
the Amancaya and Guanaco mines.
10. Metallurgical recoveries for Heaps I, II, and II are 54%, 70%, and 46% for gold
10. Bulk densities are 2.5 t/m3 for Amancaya and Guanaco, 2.44 t/m3 for Inesperada,
respectively.
11. Bulk density is 1.77 t/m3 for Heap I, 1.50 t/m3 for Heap II, and 1.70 t/m3 for Heap III.
12. Numbers may not add due to rounding.
and 1.77 t/m3 for Heap I, 1.50 t/m3 for Heap II, and 1.70 t/m3 for Heap III,
respectively.
11. Numbers may not add due to rounding.
Austral Gold Limited
22
Annual Report 2023
NOTES TO THE MINERAL RESOURCES & ORE
RESERVES STATEMENT
Guanaco and Amancaya Mines
The SLR Qualified Persons (QPs) for the Amancaya and Guanaco
Reserve and Resource Estimates include: Stephan R. Blaho, MBA,
P.Eng., SLR Principal Mining Engineer, Orlando Rojas, MAIG, SLR
Associate Principal Geologist, Rodrigo Barra, MAIG, SLR Associ-
ate Principal Geologist, Varun Bhundhoo, ing., SLR Project Mining
Engineer, Andrew P. Hampton, M.Sc., P.Eng., SLR Principal Metal-
lurgist, and Luis Vasquez, M.Sc., P.Eng, SLR Senior Environmental
Consultant and Hydrotechnical Engineer. The Mineral Resources
and Reserves are classified and reported in accordance with CIM
(2014) definitions as incorporated in NI 43-101, as well as JORC
2012, within the Guanaco and Amancaya Gold Project, Region II,
Chile, dated 25 March, 2022, with an effective date of 31 Decem-
ber 2021.
The Company confirms that the form and context in which the CP’s
findings are presented have not been materially modified from the
original market announcement, except for the depletion of mineral
resources in 2022 and 2023. The Company ensures that the Ore
Reserves and Mineral Resource Estimates are subject to appropri-
ate levels of governance and internal controls. Governance of the
Company’s Ore Reserves and Mineral Resources development
and the estimation process is a key responsibility of the Executive
Management of the Company. The Chief Executive Officer of the
Company oversees the review and technical evaluations of the
Ore Reserves and Mineral Resource estimates.
Competent Persons Statements
The information in the report to which this statement is attached
that relates to the depletion of Mineral Resources is based upon
information compiled by Constantino Mendiz, a Competent Person
(CP 497) who is a registered member of the Comision Calificadora
de Competencias en Recursos y Reservas Mineras. Constantino
Mendiz is a consultant of the company and has sufficient experi-
ence that is relevant to the type of deposit and the mining meth-
ods of exploitation under consideration and to the activity being
under- taken to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Explora-
tion Results, Mineral Resources and Ore Reserves’. Constantino
Mendiz consents to the inclusion in the report of matters based
on his information in the form and context in which it appears.
The information in the report to which this statement is attached
that relates to Ore Reserves is based upon information is based
on work supervised, or compiled on behalf of Robert Trzebski,
a Non-Executive Director of the Company. Dr. Trzebski, holds a
degree in Geology, PhD in Geophysics and is a member of the
Australasian Institute of Mining and Metallurgy (AusIMM) who
qualifies as a Competent Person as defined in the 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Dr Robert Trzebski consents to the
inclusion in the report of matters based on his information in the
form and context in which it appears.
Austral Gold Limited
23
Annual Report 2023
REVIEW OF ACTIVITIES
Austral Gold Limited
24
Annual Report 2023
REVIEW OF RESULTS
For the Year Ended 31 December 2023
The following report on the review of results for the year ended 31 December 2023 (“FY23”) and 2022 (“FY22”) together with the consoli-
dated financial report of Austral Gold Limited (the Company) and its subsidiaries, (referred to hereafter as the Group)
PRINCIPAL ACTIVITIES
Achieved production of 24,879 gold equivalent ounces at the Group’s Guanaco/ Amancaya mine complex
Completed construction and started production at the Heap Reprocessing project that is expected to provide
production to 2033 (commenced Q4 2023)
Reported final assay results from the 6,585 meter drilling campaign at Casposo-Manantiales, supporting the
Company’s strategic objective to restart mining operations
Actively pursued new discoveries with exploration activity undertaken at the Company’s high-quality land
portfolio including over 4,000 meters of drilling at the Jaguelito Project in Argentina
Completed the sale of SCRN Properties, owner of the Pinguino advanced exploration project to ASX listed Unico
Silver Limited (“Unico”) for total consideration of approximately US$10 million
Executed a definitive agreement with TSXV listed Colossus Resources to sell Austral’s Chilean Calvario and
Mirador copper projects, to become their largest shareholder with a 19.9% interest
Secured related party loans of approximately US$4.3 million in principal from the Company’s major shareholder
and a Company under his control
Mr. Eduardo Elsztain was appointed as the new non-Executive Chair of the Company after Mr. Wayne Hubert
retired as a director at the Group’s 2023 AGM
There were no other significant changes in our principal activities during the year. All resolutions were passed at the Company’s
30 May 2023 Annual General Meeting.
Austral Gold Limited
25
Annual Report 2023
SAFETY AND ENVIRONMENTAL
PROTECTION
Safety and environmental protection are core values of the Company.
The implementation of best practice safety standards along with a sound risk
management program are key priorities for Austral Gold.
SAFETY
During the year ended 31 December 2023, there were six lost-time
accidents (LTA’s) and 12 nil-lost-time accidents (NLTA) involving
employees of Guanaco/Amancaya and third party contractors.
COMMUNITY ACTIVITIES
Austral Gold has an extensive history of being a committed neigh-
bor to the communities in which it operates.
Our support to the communities surrounding our projects in
Chile focuses mainly on education programs as we believe
that through education it is possible to improve citizens socio-
economic conditions and contribute to the youth population
and the overall community.
ENVIRONMENTAL
The environmental monitoring program implemented for the
Guanaco Amancaya Operation includes meteorology, air qual-
ity, water quality, flora and fauna, and archaeology. Air quality is
monitored at two locations in Guanaco and one in Amancaya.
Meteorological parameters are collected at one air quality station
in Guanaco and the air quality station in Amancaya. There is also a
meteorological station in Guanaco. independent from the air qual-
ity monitoring system. Monitoring of flora and fauna is conducted
in Punta del Viento, Las Mulas and Pastos Largos approximately
30 km east of Guanaco.
The results of the environmental monitoring campaigns are regu-
larly submitted electronically to the Environmental Superinten-
dency (“SMA”) through the system set up in the SMA’s website
to upload the information. In addition, the monitoring results are
submitted to other government agencies such as the General
Water Directorate.
The Guanaco Amancaya Operation is in an arid area with infrequent
surface runoff resulting from precipitation. There is no discharge
of water to the environment from the Guanaco site. The process
plant, the heap leach pads and the tailing storage facility (“TSF”)
are operated as zero discharge facilities. The heap leach pads are
operated as closed circuits. The freshwater supply to be used for
industrial processes is required to offset evaporation losses.
The water collected from the surface water and wells is conveyed
to Guanaco by gravity through HDPE pipes. Currently the water
supply for Guanaco is mostly groundwater pumped from two main
wells. There are two additional small wells (for a total of four) that
provide small volumes of water. The water collected from the wells
is a small fraction of the total freshwater supply.
Flow monitoring is conducted at three locations in the area where
freshwater is taken from the natural ponds/creeks resulting from
spring water, which encompasses three sectors: Punta del Viento,
Las Mulas and Pastos Largos. Flow monitoring is also conducted
at the groundwater supply wells. Water quality monitoring is
conducted at five groundwater monitoring wells located down-
stream of the heap leach pads and the tailing storage facility. There
is no discharge of water to the environment from the Amancaya
site. Freshwater is required only for road irrigation (dust suppres-
sion) and domestic consumption. Currently the freshwater supply
is obtained by pumping water from one groundwater well and
conveying it by gravity through HDPE pipes. Flow monitoring is
conducted at the water supply well. Water quality monitoring is
conducted at four groundwater monitoring wells located down-
stream of the Amancaya site. Water for domestic use is treated in
potable treatment plants installed at both Guanaco and Amancaya.
Sanitary wastewater is sent to sewage treatment plants and the
treated effluent is used for road irrigation and operation of drilling
equipment for exploration activities.
The Casposo/Manantiales Mine Complex’s Environmental Impact
Assessment (EIA) was submitted in 2007, reviewed by a multi-
disciplinary commission, and approved in 2009. Casposo received
the ISO 14001 certification for its Environmental Management
Plan in 2012.
Austral Gold Limited
26
Annual Report 2023
Austral Gold Limited
27
Annual Report 2023
REVIEW OF RESULTS
OF OPERATIONS
A summary of key operating results for FY23 and FY22 are set out in the following tables for comparative purposes.
KEY OPERATIONAL INDICATORS
Guanaco/Amancaya Operations
Mined Ore (t)
Processed (t)
Plant Grade Underground (g/t Au)
Plant Grade Heap (g/t Au)
Plant Grade Underground (g/t Ag)
Plant Grade Heap (g/t Ag)
Gold recovery rate (%)
Silver recovery rate (%)
Gold produced (Oz)
Silver produced (Oz)
Gold-Equivalent produced (Oz) (1)
C1 Cash Cost of Production (US$/AuEq Oz)(2)
All-in Sustaining Cost (US$/Au Oz)(3)
Realised gold price (US$/Au Oz)
Realised silver price (US$/Ag Oz)
Gold Equivalent sales volume
Year ended 31 December
2023
239,356
343,835
2.79
1.47
8.83
3.74
92.76
76.32
24,012
72,620
24,879
1,645
2,004
1,942
23
24,578
2022
219,525
283,720
3.71
1.19
13.36
35.26
93.72
80.75
26,507
96,541
27,686
1,370
1,765(4)
1,798
22
27,648
(1) (AuEq) ratio is calculated at: 83.8:1 Ag:Au for FY23 and 81.9:1 Ag:Au for FY22
(2) The cash cost (C1) includes: Mine, Plant, On-Site G&A, Smelting, Refining, and Royalties (excludes Corporate G&A). It is the cost of production per gold equivalent
ounce.
(3) The All-in Sustaining Cost (AISC) includes: C1, Sustaining Capex, Brownfield Exploration, and Mine Closure Amortisation
(4) Reported as US$1,735 in the 2022 annual report
Austral Gold Limited
28
Annual Report 2023
Cash Costs of Production (C1) refer to the direct expenses incurred during the production of gold. These costs are typically reported on
a per-ounce basis while All in Sustaining costs (AISC) provides a comprehensive view of the total costs included with gold production
and includes cash costs plus sustaining costs to maintain ongoing mining operations.
Cash Costs of Production (C1) and All-in Sustaining Cost (AISC)
Expressed in US$ per GEO
Year ended 31 December
2023
2022
Mining
Plant
Geology, engineering, and laboratory
Onsite general and administration
Smelting and refining
Royalties and taxes
Inventory movement
Other
Cash Cost (C1)
Reclamation & Remediation amortisation
Sustaining capital expenditure
Other administration costs
Financial leases
All in Sustaining costs (AISC)
(1) Reported as US$1,735 in the Group’s 2022 annual report
700
557
123
240
27
48
(52)
2
571
414
105
209
19
39
11
2
1,645
1,370
1
218
56
84
4
234
41
116
2,004
1,765(1)
Austral Gold Limited
29
Annual Report 2023
KEY FINANCIAL RESULTS
Thousands of US$
Revenue
Gross profit
Gross profit %
Adjusted gross profit (excluding depreciation and amortisation)
Adjusted gross profit % (excluding depreciation and amortisation)
Adjusted earnings
Adjusted earnings per share (basic and fully diluted)
Loss before income tax
Loss attributed to shareholders
Loss attributed to non-controlling interests
Loss per share (Basic)
Loss earnings per share (diluted)
Comprehensive loss
Year ended 31 December
2023
47,729
546
1.1%
6,557
13.7%
4,192
0.007c
(7,951)
(7,229)
(14)
(1.18)c
(1.18)c
(7,242)
2022
49,710
2,566
5.2%
10,237
20.6%
2,807
0.005c
(9,581)
(8,257)
(9)
(1.35)c
(1.35)c
(8,283)
Note: Adjusted earnings and basic adjusted earnings per share are non-IFRS measures that the Company considers to better reflect normalized earnings as it eliminates
items that in management’s judgment are subject to volatility as a result of factors which are unrelated to operations in the period, and readers are cautioned that
Adjusted earnings may not be comparable to similar measures presented by other companies. Further, readers are cautioned that Adjusted Earnings should not
replace profit or loss or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of the Company’s
performance.
ADJUSTED EARNINGS
Thousands of US$
Loss before tax
Depreciation and amortisation(1)
Other (income)(2)
Gain on sale of subsidiary
Gain on sale of financial assets and revaluation of Ensign securities
Equipment rental
Other(3)
Other expenses(4)
Impairment loss exploration and evaluation assets
Care and maintenance
Loss on fair value of financial assets
Rawhide financial option and due diligence expenses
Other
Finance income(5)
Interest income
Other
Finance costs(6)
Interest expense
Present value adjustment to mine closure provision
Present value adjustment to GST/VAT receivable
Share of loss of associates
Adjusted Earnings
(1) Includes US$37 thousand (2022: US$107 thousand) of depreciation and amortisation included in Other expenses (note 8)
(2) Note 7 to the financial statements
(3) Reconciles with note 7 to the financial statements
(4) Note 8 to the financial statements
(5) Note 10 to the financial statements
(6) Note 11 to the financial statements
(7) Reported as US$2,204 in the 2022 annual report
Year ended 31 December
2023
(7,951)
6,048
(1,964)
(1,033)
(222)
(634)
3,981
2,415
992
617
519
(140)
(174)
1,395
138
145
60
4,192
2022
(9,581)
7,778
-
-
(298)
(1,395)
926
2,068
968
-
589
(4)
-
660
420
-
676
2,807(7)
Austral Gold Limited
30
Annual Report 2023
Thousands of US$
Cash & cash equivalents
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Net current liabilities
Current loans and borrowings
Non-current loans and borrowings
Current lease liabilities
Non-current lease liabilities
Combined debt (borrowings and financial leases)
Combined net debt (net of cash & cash equivalents)
Current ratio (1)
Total liabilities to net assets
(1) Current Assets divided by Current Liabilities
Year ended 31 December
2023
1,039
17,135
87,149
40,820
21,891
41,573
(23,685)
13,540
2,568
1,169
1,143
18,420
17,381
0.42
1.51
2022
926
22,305
75,012
29,820
18,682
48,815
(7,515)
7,382
1,264
1,925
911
11,482
10,556
0.75
0.99
OPERATING AND FINANCIAL RESULTS OF THE GROUP
During FY23, the Group realised a loss before and after income tax of US$7,951 thousand (FY22: $9,581 thousand) and US$7,243 thousand
(FY22:US$8,266 thousand), respectively.
Revenues at existing operations totaled US$47,729 thousand (FY22: $49,710 thousand) with gross profit (including depreciation and amor-
tization) of US$546 thousand (1.1% margin) in FY23 compared to US$2,566 thousand (5.2% margin) in FY22. Gross profit margin (excluding
depreciation and amortization) was 13.7% in FY23 compared to 20.6% in FY22.
The decrease in gross profit during FY23 from FY22 was mainly driven by (i) a decrease in sales of gold equivalent ounces (GEOs) (24,578
GEOs vs 27,648 GEOs in FY22), and (ii) an increase in the cost of production, partially offset by an increase in the average sales price realised
and lower depreciation and amortisation.
The Group’s results during FY23 were also impacted by the following:
i. Decrease in FY23 administration costs by US$2,259 thousand to US$6,145 thousand (FY22:US$8,404 thousand) mainly due to decreases
in staff costs, consulting and professional fees and business, property and other taxes.
ii. Increase in other income by US$2,160 thousand to US$3,853 thousand (FY22: US$1,693 thousand) primarily driven by a US$1,964 thousand
gain resulting from the sale of SCRN Properties Ltd., whose major asset was the Pinguino project. The sale was made to ASX listed Unico
Silver Limited (“Unico”). Additionally, there was a US$1,012 thousand gain due to the revaluation of Ensign securities. In FY23, the Group
accounted for the investment as a financial asset instead of an equity investment, reflecting a change in circumstances during the year.
iii. Increase in other expenses by US$3,917 thousand to US$8,889 thousand (FY22: US$4,972 thousand) mainly due to the following:
a. A non-cash US$3,981 thousand impairment on exploration and evaluation assets (2022: US$926 thousand), primarily due
to the impairment of the Morros Blancos project from the option agreement with CSE listed Pampa Metals Corporation and
the implementation of a rationalisation plan to reduce non-core exploration areas in Chile.
b. Rawhide option agreement and due diligence expenses of US$617 thousand. The takeover option were not exercised.
c. Other costs of US$397 thousand as the Group decided to terminate the agreement with the Amancaya UG contractor
effective 31 January 2024.
iv. Increase in finance income by US$2,288 thousand to US$4,422 thousand (FY22: US$2,134 thousand) primarily due to a US$1,978
thousand increase in foreign exchange gains to US$4,108 thousand (FY22: US$2,130 thousand) on the increase in the value of the
US dollar versus the Argentine and Chilean currencies during FY23.
v. Decrease in finance costs by US$244 thousand to US$1,678 thousand (FY22: US$1,922 thousand) was primarily due to a loss from
foreign exchange of US$842 thousand incurred in FY22. This loss was partially offset by a US$764 thousand increase in interest
expense to US$1,216 thousand. The interest expense rose due to an increase in the average interest rate from 6.9% to 9.6% on
higher borrowings in FY23.
The cost of production (“C1”) per GEO increased to US$1,645 for the year ended December 2023 from US$1,370 for the year ended December
2022 while the all-in sustaining cost (“AISC”) per GEO increased to US$2,004 for the year ended December 2023 from US$1,765 for the year
ended December 2022. The increase in the cost of production were mainly due to lower average grades, higher tonnes processed, and an
increase in the cost of supplies due to inflation.
Austral Gold Limited
31
Annual Report 2023
HEAP REPROCESSING PROJECT
During the year, the Company started and completed construction
of the Heap Reprocessing Project (“Project” or “Heaps”). Produc-
tion began gradually during Q4 2023, contributing a total of 485 gold
ounces and 923 silver ounces (or 496 GEOs). Production from the
Project was less than budgeted due to operational issues primarily
caused by (i) structural damage in the multi-slope screen (a.k.a. banana
screen), (ii) implementation delays in Heap 4’s irrigation systems, (iii)
electrical devices failures at the crushing circuit, and (iv) reduced kinetic
results and prolonged initial recovery rates.
FINANCIAL POSITION
The Group held cash and cash equivalents of US$1,039 thousand at
31 December 2023 (2022: US$926 thousand) or US$2,581 thousand
(2022: US$2,593 thousand) when combined with the fair value of 742
unsold and unrefined gold equivalent ounces in inventory of US$1,542
thousand (2022: 918 unrefined gold equivalent ounces with a fair value
of US$1,667 thousand). Cash and cash equivalents at 31 December
2023 is net of a US$222 thousand bank overdraft and includes US$591
thousand of cash advanced from a private placement of convertible
notes which closed the first tranche on 15 February 2024. The second
tranche of US$409 thousand, which had a deadline of 15 March 2024
was not completed.
Trade and other receivables (current and non-current) increased by
US$157 thousand to US$3,483 thousand at 31 December 2023 (31
December 2022:US$3,326 thousand). The increase was mainly due to
the discounted value of two remaining installments totaling US$1,631
thousand (undiscounted US$1,750 thousand) due from Unico over
the next two years on the sale of SCRN Properties Ltd. on 1 March
2023. Additionally, GST/VAT receivable decreased mainly due to the
impact of the decrease in the value of the Argentinean peso on GST/
VAT receivable in the country.
Inventories increased by US$753 thousand to US$9,699 thousand at
31 December 2023 (31 December 2022: US$8,946 thousand) mainly
due to an increase in ore stockpiles by year end from both Guanaco
and Amancaya mines.
Other financial assets (current and non-current) increased by US$5,444
thousand to US$6,085 thousand at 31 at December 2023 (31 Decem-
ber 2022:US$641 thousand) mainly due to Unico shares and options
acquired by the Group from the sale of SCRN Properties Ltd. Half of
these shares were released from escrow on 1 March 2024 and the
remainder are to be released from escrow on 1 March 2025. Addition-
ally, an increase of US$1,012 thousand relates to the remeasuring of
the Group’s investment in Ensign at fair value as disclosed in note 18
to the financial statements.
Property, plant and equipment increased by US$7,359 thousand to
US$49,616 thousand at 31 December 2023 (31 December 2022:
US$42,257 thousand) primarily due to sustaining capital expenditures
and construction activities at the new Heap Reprocessing Project.
Prepaid income taxes (current and non-current) decreased by
US$1,343 thousand to US$209 thousand (31 December 2022:
US$1,552 thousand) mainly due to the refund of US$994 thousand in
Chilean taxes during the year.
Current trade and other payables increased by US$7,431 thousand
to US$23,121 thousand at 31 December 2023 (31 December 2022:
US$15,690 thousand). The main reasons for the increase were the
lower than forecasted production, mainly due to a delay in ramp-
ing up production at the Heap Reprocessing Project. Non-current
trade and other payables were US$3 thousand at 31 December
2023 (31 December 2022: US$1,013 thousand).
At 31 December 2023, the Group had net current liabilities of
US$23,685 thousand (31 December 2022: US$7,515 thou-
sand). The increase from 31 December 2022 was mainly due to
a decrease in gross profit on sales that led to lower cash genera-
tion and an increase in trade and other payables and short-term
borrowings. The Group expects its net current liability position to
improve in FY24 mainly due to an increase in production at higher
margins as most of the production is forecasted from the Heaps.
Combined net financial debt (borrowings and lease liabilities net
of cash & cash equivalents) increased by US$6,825 thousand to
US$17,381 thousand at 31 December 2023 (31 December 2022:
US$10,556 thousand). Financial debt totaled US$18,420 thousand
at 31 December 2023, of which US$14,709 thousand (representing
80% of total financial debt) was categorised as short-term. The
short-term financial debt includes related party loans, renewable
pre-export facilities, lease liabilities and the short-term portion,
of two 3-year bank loans. During January and February 2024, the
Group renewed US$2,500 thousand in pre-export facilities.
Net assets decreased by US$7,242 thousand from 31 December
2022 to US$41,573 thousand at 31 December 2023 (31 December
2022: US$48,815 thousand) following the net loss of the year.
CASH FLOW
Net cash provided from operating activities before and after
changes in working capital were US$2,475 thousand and
US$7,927 thousand during FY23 (FY22:US$2,571 thousand and
US$10,953 thousand). The decrease was primarily due to lower
gross profit margins, partially offset by working capital changes in
FY23 as explained above.
Net cash used in investing activities totaled US$12,425 thousand
during FY23 (FY22:US$11,595 thousand) mainly due to the following:
• Investments of US$11,283 thousand in FY23 were primarily
used for additions to plant, property and equipment includ-
ing US$5,633 thousand on the Heap Reprocessing Project
(FY22:US$6,434 thousand);
• Exploration and evaluation activities of US$4,614 thousand
(FY22:US$5,790 thousand) of which US$2,943 thousand was
incurred on the Jaguelito project and US$917 thousand was
incurred at the Casposo-Manantiales district.
• Partially offset by US$3,250 thousand received from Unico
through the sale of SCRN Properties Ltd. which constitutes the
first two cash installments from a total of US$5,000 thousand,
in addition to the shares and warrants received as disclosed
above.
Net cash of US$4,611 thousand received from financing activities
during FY23 compared to US$778 thousand used in financing
activities in FY22 primarily due to the following:
• Net cash of US$4,020 thousand received from the net receipt
of, loans, borrowings, interest and financial leases including
US$4,550 thousand of loans from related parties (FY22: net
repayments of US$778 thousand);US$591 thousand received
from the US$1 million convertible note financing announced
on 10 October 2023. As the financing has not closed as of 31
December 2023, US$591 thousand was recorded as a current
liability. The financing was partially closed as explained above.
Austral Gold Limited
32
Annual Report 2023
LIQUIDITY
Guidance
2024 revised production guidance indi-
cates that 26,000-28,000 GEOs is fore-
cast to be sourced primarily from the Heap
Reprocessing Project (“Heaps”). Addition-
ally, Q1 2024 production is forcast to be
between 4,500 and 5,000 GEOs, with
higher production in each successive quar-
ter. The Group plans to continue integrating
the agitation leaching and heap leaching
processes and utilise material from the
Heaps and the remaining ore and stocks
from the Amancaya and Guanaco mines.
2024 Cash costs are estimated to be
between US$1,250-US$2,101 per GEO
with all in sustaining costs (AISC) in the
range US$1,300-US$2,283 and an annual
average of US$1,533 per GEO.
Access to capital
The Group has a strong shareholder
group and solid banking relationships that
demonstrated their financial support in
2023. The Group expects both groups to
continue providing financial support.
Austral Gold Limited
33
Annual Report 2023
DIRECTORS’ REPORT
Austral Gold Limited
34
Annual Report 2023
The Company’s Board believes that a highly credentialed Board, with diverse backgrounds,
skills and perspectives, will be effective in supporting and enabling delivery of strong gover-
nance for the Company and creating value for the Company’s shareholders.
The Board brings a broad mix of experience and skills to the Company including in the areas
of corporate governance, legal, geological expertise and financial management.
Austral Gold Limited
35
Annual Report 2023
THE DIRECTORS
EDUARDO ELSZTAIN
Chairman
Mr. Eduardo Elsztain is chairman of IRSA Inversiones y
Representaciones S.A. (NYSE:IRS), one of Argentina’s larg-
est and most diversified real estate companies, with shop-
ping centers, premium office buildings, five-star hotels and
residential developments. He also serves as Chairman of
Cresud (NASDAQ:CRESY, BASE: CRES) and BrasilAgro
(NYSE:LND), leading Latin American agricultural companies
that own directly and indirectly almost 1M HA of farmland.
Mr. Elsztain is Chairman of Banco Hipotecario S.A.
(BASE:BHIP); and of BACS, Argentinean leading bank
specialized in providing innovative financial solutions to local
companies.
He is also member of the World Economic Forum, the Council
of the Americas, the Group of 50 and Argentina’s Business
Association (AEA). He is President of Fundacion IRSA, which
promotes education among children and young people;
President of TAGLIT — Birthright Argentina; Co-Founder of
Endeavor Argentina; and Vice- President of the World Jewish
Congress.
Mr. Elsztain has not held any other Directorships with Austra-
lian or Canadian listed companies in the last three years.
Director since 29 June 2007
Appointed Chair 2011 until August 2020 when he became Vice Chair.
Re-appointed Chair 30 May 2023
Austral Gold Limited
36
Annual Report 2023
STABRO KASANEVA
Executive Director,
Chief Executive Officer
SAUL ZANG
Non-Executive Director
Mr. Zang obtained a law degree from Universidad de Buenos
Aires. He is a founding member of the law firm Zang, Bergel
& Viñes.
Mr. Zang is an adviser and Member of the Board of Direc-
tors of the Buenos Aires Stock Exchange and provides legal
advice to national and international companies.
Mr. Zang currently holds:
i. Vice-Chairmanships on the Boards of IRSA (NYSE: IRS,
BASE: IRSA), and Cresud (NASDAQ: CRESY, BASE: CRES)
ii. Directorships with Banco Hipotecario (BASE: BHIP), Brasil
Agro (NYSE: LND, BVMF:AGRO3), among others.
Mr. Zang has not held any other Directorships with Australian
or Canadian listed companies in the last three years.
Director since 7 Jun 2007
Mr. Kasaneva is a Geologist with a degree from the Universidad
Católica del Norte, Chile and has over 30 years of experience in
production geology, exploration and management of precious
metal mining operations.
Since Mr. Kasaneva joined Austral Gold in 2009, he has been
instrumental in transforming the Company by consolidating
the operations of the Guanaco Mine in Chile, restarting opera-
tions at the Casposo Mine in Argentina as well as identifying
a number of opportunities that represent the growth potential
for Austral Gold.
Throughout his career as a geologist, he worked on exploration
and production gaining vast experience in grade control, QA/
QC, modeling and geological resources estimation.
Mr. Kasaneva led Business Development Departments for
several years evaluating a number of mining business oppor-
tunities in South America, Central America and North America.
He has held the roles of General Manager of Mining Operations,
Vice-President of Operations and COO.
Mr. Kasaneva is a Director of Ensign Minerals Inc. (private
company).
Mr. Kasaneva has not held any Directorships with Australian or
Canadian listed companies in the last three years.
Director since 7 Oct 2009
Appointed COO until appointment as Chief Executive Officer
August 2016
Austral Gold Limited
37
Annual Report 2023
THE DIRECTORS
BEN JARVIS
Non-Executive Director,
Member of the Audit Committee
PABLO VERGARA DEL CARRIL
Non-Executive Director,
Member of the Audit Committee
Mr. Jarvis is the Managing Director of Six Degrees Investor
Relations, an Australian advisory firm that provides investor
relations services to a broad range of companies listed on the
Australian Securities Exchange.
Mr. Jarvis was educated at the University of Adelaide where
he majored in Politics.
Mr. Jarvis is a non-executive director of Aguia Resources
Limited (ASX:AGR) and Freehill Mining Limited (ASX:FHS)
and he was a non-executive director of QX Resources Limited
(ASX:QXR) until his resignation effective 27 October 2023. Mr.
Jarvis has not held any other Directorships with Australian or
Canadian listed companies in the last three years.
Director since 2 Jun 2011
Mr. Vergara del Carril is a lawyer and is professor of Post-
graduate Degrees for Capital Markets, Corporate Law and
Business Law at the Argentine Catholic University.
He is a member of the International Bar Association, the
American Bar Association and the AMCHAM, among
other legal and business organisations. He is a founding
Board member of the Australian- Argentinean Chamber of
Commerce. He is a Board member of the Argentine Chamber
of Corporations and also an officer of its Legal Committee.
He is recognised as a leading lawyer in Corporate, Real
Estate, M&A, Banking & Finance and Real Estate Law by
international publications such as Chamber & Partners,
Legal 500, International Financial Law Review, Latin Lawyer
and Best Lawyer.
He is a Director of Banco Hipotecario SA. (BASE: BHIP),
Nuevas Fronteras (owner of the Intercontinental Hotel in
Buenos Aires), and Emprendimiento Recoleta SA (owner
of the Buenos Aires Design Shopping Centre), among
other companies. Mr. Vergara del Carril is also a Director
of Guanaco Mining Company Limited and Guanaco Capital
Holding Corp.
Mr. Vergara del Carril has not held any other Directorships
with Australian or Canadian listed companies in the last
three years.
Director since 18 May 2006
Austral Gold Limited
38
Annual Report 2023
ROBERT TRZEBSKI
Non-Executive Director,
Chairman of the Audit Committee
Dr. Trzebski holds a degree in Geology, PhD in Geophys-
ics, Masters in Project Management and has over 30 years
of professional experience in mineral exploration, project
management and mining services.
He is currently the Director International Business of Aust-
mine Ltd. As a fellow of the Australian Institute of Mining and
Metallurgy, Dr. Trzebski also acts as the Competent Person
(CP) for the Company’s announcements.
Dr. Trzebski is a non-executive director of Lake Resources
NL (ASX: LKE; OTC: LLKKF).
Dr. Trzebski has not held any other Directorships with Austra-
lian or Canadian listed companies in the last three years.
Director since 10 Apr 2007
Austral Gold Limited
39
Annual Report 2023
SENIOR MANAGEMENT
RODRIGO
RAMIREZ
Vice President
of Operations
JOSÉ
BORDOGNA
Chief Financial Officer
CHELSEA
SHERIDAN
Automic Group,
Company Secretary
Mr. Ramirez holds a Mining Engineering degree from the University of Chile.
He has been involved with the Company since it was founded, to recommission
the Guanaco mine in 2010. Mr. Ramirez has led mining and engineering activi-
ties since then, as well as all reviews and analysis of the Company’s growth
activities. Mr. Ramirez led the design and construction of the Company’s agita-
tion leach plant at Guanaco and assumed the role of VP of Operations in 2018.
Prior to joining Austral, Mr. Ramirez held senior operational, planning and
execution roles at Antofagasta PLC and at Meridian Gold’s world class El Peñon
mine acquired by Yamana Gold.
Chief Operating Officer since June 2018 and Vice President of Technical Services from 7 August
2017 to June 2018
Mr. Bordogna joined Austral Gold in 2013 as Controller and was promoted to CFO
in 2016. Since then, he has overseen all corporate finance and accounting activi-
ties, including equity and direct investments in mining related assets, listing the
company on the TSX-V, amongst others.
Mr. Bordogna is a Certified Public Accountant and holds a Global Executive MBA
(IE Business School) and a Master of International Business (The University of
Sydney). He is also CFA Candidate Level 3.
Prior to joining Austral Gold, he worked for the International Finance Corporation
(IFC) and Deloitte in Latin America. He has over 15 years’ experience in corporate
finance, M&A, investment banking and accounting roles.
Mr. Bordogna is a non-executive director of Unico Silver Limited (ASX: USL)
Chief Financial Officer from August 2016 until his resignation on 28 February 2022 and his
reappointment effective 1 May 2022
Ms. Chelsea Sheridan is a named Company Secretary at Automic who
manages a portfolio of ASX listed companies, across a wide range of indus-
tries. Chelsea has a diploma in Business Administration, and an affiliate of
the Governance Institute of Australia (GIA).
Corporate secretary since 31 August 2022
Austral Gold Limited
40
Annual Report 2023
DIRECTORS’ MEETINGS
The number of Directors’ meetings (including meetings of Commit-
tees of Directors) and number of meetings attended by each of the
Directors of the Company during the financial year were
Directors’
meetings
Audit
Committee
meetings
Director
Pablo Vergara del Carril
Robert Trzebski
Wayne Hubert
Eduardo Elsztain
Saul Zang
Stabro Kasaneva
Ben Jarvis
A
3
3
2
3
3
3
3
B
3
3
2
3
3
3
3
A
3
3
N/A
N/A
N/A
N/A
3
B
3
3
N/A
N/A
N/A
N/A
3
A: Number of meetings attended
B: Number of meetings held during the time the Director held office during the
financial year
INDEMNITY AND INSURANCE OF AUDITOR
• The Company has not, during or since the end of the finan-
cial 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 Company has not paid a premium
in respect of a contract to insure the auditor of the Company or
any related entity.
REMUNERATION REPORT (AUDITED)
Remuneration Policy
The full Board of Austral Gold is responsible for determining remu-
neration policies in respect of executives and Key Management
Personnel (KMP).
The Company has a Remuneration Policy that aims to ensure
the remuneration packages of Directors and senior executives
properly reflect the person’s duties, responsibilities and level of
performance, as well as ensuring that remuneration is competitive
in attracting, retaining and motivating people of the highest quality.
The level of remuneration is based on market rates and is not
directly linked to the market value of the shares of Austral Gold.
SHARES AND OPTIONS
At the date of this report there are no options over the Company’s
ordinary shares.
At the most recent Annual General Meeting of the Company held
on 30 May 2023, 83.93% of votes cast at the meeting were in
favour of the adoption of the Remuneration Report.
During or since the end of the financial year, the Company has not
granted options over its ordinary shares.
INDEMNITY AND INSURANCE OF OFFICERS
Under a deed of access, indemnity and insurance, the Company
indemnifies each person who is a Director, secretary or officer of
Austral Gold Limited against:
• any liability (other than for legal costs) incurred by a Director,
secretary or officer in his or her capacity as an officer of the
Company or of a subsidiary of the Company; and
• reasonable legal costs incurred in defending an action for a
liability incurred or allegedly incurred by a secretary in his or
her capacity as an officer of the Company or of a subsidiary of
the Company.
The above indemnities:
• apply only to the extent the Company is permitted by law to
indemnify a Director, officer or secretary;
• are subject to the Company’s constitution and the prohibitions
in section 199A of the Corporations Act; and
• apply only to the extent and for the amount that a Director,
secretary or officer is not otherwise entitled to be indemnified
and is not actually indemnified by another person (including a
related body corporate or an insurer).
Remuneration information for KMP is reported in US Dollars (US$).
All contractual arrangements for non-executive Directors and
the Chairman are denominated in US Dollars. The contractual
arrangements for the Senior Executive KMP, are denominated in
the local currency of the jurisdiction in which the Senior Executive
KMP are employed.
The level of remuneration for non-executive Directors is consid-
ered with regard to the practices of other public companies and
the aggregate amount of fees paid to non-executive Directors
approved by shareholders.
The executive directors do not receive fees for being a director.
Total compensation for all non-executive directors, last voted on by
shareholders at the 2020 AGM, is not to exceed US$400,000 per
annum. The director fee for the Chair is US$100,000 per annum.
Director fees for other non-executive directors are US$50,000
per annum.
Non-executive directors do not receive performance-related
compensation and are not provided with retirement benefits except
for statutory superannuation for Australian KMP, including directors.
Total KMP remuneration was US$1,616,011 in FY23 (US$2,444,080
in FY22). Senior Executives KMP have not received any cash bonus
performance payments which they are entitled to for FY23 and FY22,
except for the VP of Exploration who resigned in 2022 effective 31
January 2023. These bonus payments will not be made until after
the CEO and Board have seen an improvement in the Company’s
financial situation.
Austral Gold Limited
41
Annual Report 2023
The Key Management Personnel (KMP) during or since the end of the financial year were:
The Directors of the Group:
• Eduardo Elsztain
Non-Executive Chair
• Wayne Hubert
Executive Chair (retired effective 30 May 2023)
• Saul Zang
Non-Executive Director
• Pablo Vergara de Carril Non-Executive Director
• Robert Trzebski
Non-Executive Director
• Ben Jarvis
Non-Executive Director
• Stabro Kasaneva
Chief Executive Officer and Director
Other Executive KMP of the Group:
• Rodrigo Ramirez
Vice President of Operations
• José Bordogna
Chief Financial Officer
• Raul Guerra
Vice-President of Exploration (resigned effective 31 January 2023)
Remuneration of KMP
The Group has employment agreements with all executive KMP in accordance with the laws in the jurisdiction in which the KMP is
employed. Remuneration of executive KMP is made up of a fixed component and a variable (‘at risk’) component. Performance is
assessed by the Board of Directors and CEO accordingly against financial and non-financial indicators including production, safety,
cost of production, sustaining capital investments, new business and value accretive investments amongst others. The award of
the variable component is fully discretionary as detailed in the `Contractual Arrangement with Senior Executive KMP in the “31
December 2023” table.
Link Between Remuneration and Performance
The Group aims to align its executive remuneration to its strategic and business objectives and the creation of shareholder value.
The table below shows the measures of the Group’s financial performance over the last 5 financial years as required by the
Corporations Act 2001. However, these are not necessarily consistent with the measures used in determining the variable amounts
of remuneration to be awarded to each KMP. Consequently, there may not always be a direct correlation between the statutory key
performance measures and the variable remuneration awarded.
12 months ended
31 December
2019
12 months ended
30 June
2020
12 months ended
31 December
2021
12 months ended
31 December
2022
12 months ended
31 December
2023
Sales Revenue
(US$’000)
Profit/(loss) before
tax (US$’000)
Basic EPS
(US cents
per share)
Diluted EPS
(US cents
per share)
Share price (cents
AUD/CDN)
Dividend (AUD
per share)
102,209
9,508
0.97
0.93
88,223
14,335
1.36
1.34
64,390
49,710
47,729
(4,686)
(9,581)
(7,951)
(1.20)
(1.35)
(1.18)
(1.20)
(1.35)
(1.18)
9.0/8.5
21.0/22.0
8.5/8.0
3.9/3.5
2.9/3.0
–
0.009
0.008
-
-
Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each Director of the Group and each of the Senior
Executive KMP of the Group during the financial year were:
Austral Gold Limited
42
Annual Report 2023
Twelve month period ended 31 December 2023
Primary
Post-employment
Share-based
Total
Cash and
accrued
Salary and
Fees
US$
Accrued
Cash
Bonus
US$1
Non-
monetary
benefits
US$4
Super-
annuation
US$
Retirement/
Termination
benefits
US$
Equity
settled
Shares
US$
Options
US$
US$
Directors
Non-executive directors
-
-
4,298
-
-
-
-
4,853
4,853
-
4,298
9,706
Executive Director
-
-
-
-
-
-
-
-
-
-
-
-
-
71,762
E Elsztain
100,000
S Zang
R Trzebski
B Jarvis
50,000
45,147
45,147
P Vergara del Carril
50,000
Total non-
executive director
remuneration
290,294
W Hubert
-
-
-
-
-
-
-
-
S Kasaneva
387,500
93,001
7,656
Total Director
remuneration
677,794
93,001
11,954
9,706
Other Key Executives
R. Ramirez
311,281
75,197
3,889
R. Guerra3
34,002
11,859
623
-
-
J. Bordogna
220,971
57,784
18,512
17,676
-
Total other
executive
remuneration
Total director and
executive officer
remuneration
566,254
144,840
23,024
17,676
71,762
1,244,048
237,841
34,978
27,382
71,762
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
50,000
54,298
50,000
50,000
304,298
-
488,157
792,455
390,367
118,246
314,943
823,556
1,616,011
1 The 2023 accrued cash bonuses were paid only to the VP of Exploration as part of his resignation agreement. No accrued cash bonus was paid to the other Senior Executive
KMP as of the date of this report.
2 All salaries are paid in local currency and converted to USD by average FX — only for the purpose of preparing this table.
3 Mr. Guerra resigned effective 31 January 2023. Per his settlement agreement, Mr. Guerra received his 2022 bonus, a 2023 bonus of US$11,859, an exit bonus of US$71,762
and US$10,081 of vacation owed. The amount was paid in six equal monthly installments in Chilean pesos commencing February 2023 and ending July 2023.
4 Non-monetary benefits include annual leave, health and benefit premiums, professional membership dues and parking.
Austral Gold Limited
43
Annual Report 2023
Twelve-month period ended 31 December 2022
Primary
Post-employment
Share-based
Total
Cash and
accrued
Salary and
Fees
US$
Accrued
Cash
Bonus
US$1
Non-
monetary
benefits
US$
Superannuation
US$
Retirement/
Termination
benefits
US$
Equity
settled
Shares
US$
Options
US$
US$
E Elsztain
100,000
S Zang
R Trzebski
B Jarvis
50,000
45,347
45,347
P Vergara del Carril
50,000
Total non-
executive director
remuneration
290,694
W Hubert
144,000
-
-
-
-
-
-
-
Directors
Non-executive directors
293
293
4,352
-
-
-
-
4,653
4,653
-
4,938
9,306
Executive Director
-
-
-
S Kasaneva
337,750
352,236
26,911
Total Director
remuneration
772,444
352,236
31,849
9,306
Other Key Executives
R. Ramirez
273,503
284,350
8,104
R Guerra3
245,038
127,005
14,884
-
-
J Bordogna4
181,159
130,080
1,945
12,177
Total other
executive
remuneration
Total director and
executive officer
remuneration
699,700
541,435
24,933
12,177
1,472,144
893,671
56,782
21,483
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,293
50,293
54,352
50,000
50,000
304,938
144,000
716,897
1,165,835
565,957
386,927
-
325,361
1,278,245
-
2,444,080
1 The 2022 accrued cash bonus was only paid to the VP of Exploration as part of his resignation agreement in 2023. No accrued cash bonus was paid to the rest of the Senior
Executive KMP as of the date of this report.
2 All salaries are paid in local currency and converted to USD by average FX — only for the purpose of preparing this table.
3 Mr. Guerra resigned effective 31 January 2023. Per his settlement agreement, Mr. Guerra is to receive his 2022 bonus, a 2023 bonus of US$11,859, an exit bonus of
US$71,762 and US$10,081 of vacation owed. The amount is to be paid in six equal monthly installments in Chilean pesos commencing February 2023 and ending July 2023
net of assets purchased of US3,108.
4 Mr. Bordogna resigned effective 28 February 2022 and was re-hired effective 1 May 2022. During the period between Mr. Bordogna’s resignation and his employment
contract, Mr. Bordogna received US$8,000 in consulting fees which are included in the above remuneration.
Austral Gold Limited
44
Annual Report 2023
Contractual Arrangement with Executive KMP during 2023
The table below represents the target remuneration mix for group executives in the current year. The variable remuneration is
provided at target levels.
Name
Term of Agreement
and notice period
Notice Period by
Either Party
Base
salary
Bonus performance
Bonus performance
conditions
Termination
payments
Stabro Kasaneva
Chief Executive
Officer
Rodrigo Ramirez
VP of Operations
Jose Bordogna
Chief Financial
Officer
Wayne Hubert
Executive Chair
Open
1 month
Base salary is paid in
Chilean pesos with no
FX adjustment clause
0% to 100%
of salary
Open
1 month
Base salary is paid in
Chilean pesos with no
FX adjustment clause
0% to 100%
of salary
Open
1 month
Base salary is paid
in Australian dollars
with no FX adjustment
clause
0% to 100%
of salary
At the discretion of the
Board based on Group
results and individual
performance
At the discretion of the
Chief Executive
Officer based on Group
results and individual
performance
At the discretion of the
Chief Executive
Officer based on Group
results and individual
performance
One month
salary per year of
employment
One month
salary per year of
employment
One month
salary per year of
employment
Open
Not defined
Consulting fees
of US$12,000 per
month*
None
N/A
None
• Upon his retirement on 30 May 2023, Mr. Hubert advised that he would not take any fees for 2023.
Relative Proportion of Fixed vs Variable Remuneration Expense
The following table shows the relative proportions of executive remuneration that are linked to performance and those that are fixed,
based on the amounts disclosed as statutory remuneration expense in the tables above.
Name
Stabro Kasaneva
Rodrigo Ramirez
Raul Guerra
Jose Bordogna
Fixed remuneration
At risk — short-term incentive
At risk — long-term incentive
December 2023 December 2022 December 2023 December 2022 December 2023 December 2022
81%
81%
29%
82%
Executive Directors
19%
Executive Officers
19%
71%
18%
47%
48%
63%
54%
53%
52%
37%
46%
0%
0%
N/A
0%
0%
0%
0%
0%
Equity Holdings
The movement during the financial year in the number of ordinary shares in the Company held, directly, indirectly or beneficially by
each key management person, including their related parties, is as follows:
Balance at 1
January 2023
Granted as
remuneration
Market
purchases
Wayne Hubert
Eduardo Elsztain
Saul Zang
Pablo Vergara
Robert Trzebski
Ben Jarvis
Stabro Kasaneva
Raul Guerra
Rodrigo Ramirez
Jose Bordogna
Total
2,545,500
461,294,560
1,640,763
68,119
-
250,000
7,881,230
801,000
279,514
126,495
474,887,181
-
-
-
-
-
-
-
-
-
-
-
Number
of ordinary
shares at time
of retirement/
resignation
2,545,500
801,000
-
-
Balance at 31
December 2023
N/A
461,294,560
1,640,763
68,119
-
600,000
7,881,230
N/A
279,514
126,495
-
-
-
-
-
350,000
-
-
-
-
350,000
3,346,500
471,890,681
Austral Gold Limited
45
Annual Report 2023
Other transactions with KMP
Chief Executive Officer Stabro Kasaneva is related to Ensign as
he is a board member of Ensign. Mr. Kasaneva holds nil shares of
Ensign and 150,000 stock options.
• Increase profitability margins to strengthen the Company’s cash
flow generation and reduction of debt, and
• Conduct the required activities to restart a profitable mining
operation at the Casposo-Manantiales mine complex
Zang, Bergel & Viñes Abogados is a related party since one non-
executive Director, Pablo Vergara del Carril has significant influ-
ence over this law firm based in Buenos Aires, Argentina. Fees
charged and expenses to reimbursement to the Group for the
year ended 31 December 2023 amounted to US$80,922 (2022:
US$79,219).
IRSA Inversiones y Representaciones S.A. and Consultores Asset
Management S.A. are related parties as they are controlled by Non-
executive Director and Chair, Eduardo Elsztain. During the year
ended 31 December 2023 a total of US$61,975 was charged to the
Company (2022: US$72,303) in regard to IT services support, HR
services, software licenses, building/office expenses and other fees.
As disclosed in note 28 to the financial statements, during 2023,
Inversiones Financieras Del Sur SA, the Company’s major share-
holder controlled by Board Chair Eduardo Elsztain, provided loans
totaling US$2,555,000, Eduardo Elsztain provided loans totaling
US$1,700,000 and director Saul Zang provided loans totaling
US$300,000.
This concludes the remuneration report, which has been audited.
Principal activities
The principal activities of the Group during FY23 were:
• Production of 24,879 gold equivalent ounces at the Group’s
Guanaco/ Amancaya mine complex;
• Completed construction of the Heap Reprocessing project that
is expected to provide production to 2033 (commenced Q4
2023)
• Reported final assay results from the 6,585 meter drilling
campaign at Casposo-Manantiales, supporting the Company
objective to commence mining operations
• Actively pursued new discoveries with exploration activ-
ity undertaken at the Company’s high-quality land portfolio
including over 4,000 meters of drilling at the Jaguelito Project
in Argentina
• Completed the sale of SCRN Properties, owner of the Pingüino
advanced exploration project to ASX listed Unico Silver Limited
(“Unico”) for total consideration of approximately US$10 million
• Executed a definitive agreement with TSXV listed Colossus
Resources to sell Austral’s Chilean Calvario and Mirador copper
projects, to become their largest shareholder with a 19.9%
interest
• Secured related party loans totaling approximately US$4.3
million in principal from the Company’s major shareholder and
a Company under his control
• Mr. Eduardo Elsztain was appointed as the new non-Executive
Chair of the Company after Mr. Wayne Hubert retired as a direc-
tor at the Group’s AGM.
• There were no other significant changes in our principal activi-
ties during the year.
Objectives
The group’s objectives for 2024 are to:
• Meet or exceed our production forecast of 26,000-28,000 gold
equivalent ounces
Events subsequent to reporting date
On 1 March 2024, the Group executed a loan agreement for up to
US$2,200,000 from a company related to two of its directors and
the Company received US$1,000,000 on 5 March 2024.
In addition, the loan maturity dates of the loans held by Inversio-
nes Financieras del Sur S.A., Eduardo Elsztain and Saul Zang
aggregating principal of US$4,555 thousands were extended to
30 September 2024 (note 28).
On 15 February 2024, the Company issued 919,158 non-trans-
ferable unsecured convertible notes valued at US$591 thousand
immediately following the execution by the investor and the
Company of an amendment agreement to allow for closing the
private placement in two tranches. There will be no further tranches
under the agreement as the second tranche was not closed by the
due date of 15 March 2024 (note 25.2).
During January and February 2024, a total of US$2,500 thou-
sand in pre-export facilities were renewed with Santander Bank
for an additional 6 months at an average interest rate of 9.36%
per annum as three 6-month pre-export facilities were renewed
as follows: US$1,000 thousand at 9.12%, US$500 thousand at
9.32%, and US$500 thousand at 9.75% and US$500 thousand
at 9.60% (note 28).
Likely developments
The Group will continue to pursue its objectives for 2024.
Environmental
The Group’s operations are subject to environmental regulation in
the areas where it operates, Chile and Argentina.
The Group is committed to achieving a high standard of environ-
mental performance.
The environmental monitoring program implemented for the
Guanaco Amancaya Operation includes meteorology, air quality,
water quality, flora and fauna archaeology. Air quality is monitored
at two locations in Guanaco and one in Amancaya. Meteorological
parameters are collected at one air quality station in Guanaco and
the air quality station in Amancaya. There is also a meteorological
station in Guanaco independent from the air quality monitoring
system. Monitoring of flora and fauna is conducted in Punta del
Viento, Las Mulas and Pastos Largos approximately 30 km east
of Guanaco.
Auditors
KPMG continues in office as auditors in accordance with the
requirements of the Corporations Act 2001.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit
services provided during the period by the auditor are outlined
in note 12 to the financial statements. There were no non-audit
services provided by KPMG in 2023 (2022: Nil).
The Directors are satisfied that the provision of non-audit services
during the period by the auditor (or by another person or firm on
the auditor’s behalf), is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
Austral Gold Limited
46
Annual Report 2023
The Directors are of the opinion that the services as disclosed
in note 12 during the period do not compromise the external
auditor’s independence requirements of the Corporations Act
2001 for the following reasons:
• all non-audit services have been reviewed and approved to
ensure that they do not impact the integrity and objectivity of
the auditor; and
• none of the services undermine the general principles relating to
auditor independence as set out in APES 110 Code of Ethics for
Professional Accountants issued by the Accounting Professional
and Ethical Standards Board, including reviewing or auditing the
auditor’s own work, acting in a management or decision-making
capacity for the company, acting as advocate for the company
or jointly sharing economic risks and rewards.
Dividends
No dividends were paid to shareholders during the year.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on
behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the period ended
31 December 2023 has been received and is included in this report.
Signed in accordance with a resolution of Directors at Sydney.
Rounding of Amounts
The Company is a company of the kind referred to in ASIC Instru-
ment 2016/191, dated 1 April 2016, and in accordance with that
Instrument amounts in the Directors’ Report and the financial
report are rounded off to the nearest thousand dollars, unless
otherwise indicated.
Signed in accordance with a resolution of Directors made pursuant
to s.298(2) of the Corporations Act 2001.
Review of prospects for future years
The Group’s prospects for future years are based on the achieve-
ment of its 2024 objectives described on page 46.
The achievement of these objectives are subject to several risks
including business integration risks; uncertainty of production,
development plans and cost estimates, commodity price fluc-
tuations; political or economic instability and regulatory changes;
environmental risks, currency fluctuations, the state of the capital
markets, uncertainty in the measurement of mineral reserves and
resource estimates, the Group’s ability to attract and retain quali-
fied personnel and management, potential labour unrest, reclama-
tion and closure requirements for mineral properties; unpredictable
risks and hazards related to the development and operation of a
mine or mineral property that are beyond the Company’s control,
and the availability of capital to fund all of the Company’s projects.
Note that these risks are not exhaustive of all risks.
For and on behalf of the board
Robert Trzebski
Director
28 March 2024
Austral Gold Limited
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Annual Report 2023
MINE COMPLEXES
Background
Austral Gold Limited
48
Annual Report 2023
The Guanaco and Amancaya
mine complex remains the
Company’s flagship asset.
Guanaco and
Amancaya
OVERVIEW
The Guanaco and Amancaya mine complex remains the Company’s flagship asset.
Guanaco is located approximately 220km south- east of Antofagasta in Northern Chile
at an elevation of 2,700m and 45km from the Pan American Highway.
Guanaco is embedded in the Paleocene/Eocene belt, a geological feature which runs
north/south through the centre of the Antofagasta region, Chile.
Gold mineralisation at Guanaco is controlled by pervasively silicified, sub-vertical east/
northeast-west/southwest trending zones with related hydro-thermal breccias.
Silicification grades outward into advanced argillic alteration and further into zones with
argillic and propylitic alteration. In the Cachinalito vein system, most of the gold minerali-
sation is concentrated between depths of 75m and 200m and is contained in horizontally
elongated mineralised shoots. The alteration pattern and the mineralogical composition
of the Guanaco mineralisation have led to the classification as a high-sulfidation epith-
ermal deposit.
In July 2014, the Company acquired the Amancaya Project (‘Amancaya’) from Yamana
Gold Inc (TSX:YRI | NYSE:AUY) which is located approximately 60km south-west of the
Guanaco mine. Amancaya is a low sulfidation epithermal gold-silver deposit consisting of
eight mining exploration concessions covering 1,755 hectares (and a further 1,390 hectares
of second layer mining claims).
On 6 June 2017, Austral Gold completed the construction of a new agitation leaching
plant at Guanaco. At Amancaya, open-pit mining operations began during the first half
of 2017 while under- ground operations at Guanaco started in 2018. The Amancaya ore
is delivered to the Guanaco plant for processing.
On 25 March 2022, the technical report(1) was updated, revealing an extended mine
life at Guanaco/ Amancaya that could sustain production levels of 30,000-35,000 gold
equivalent ounces over the next three to four years plus a further 10,000 gold equivalent
ounces of production over the subsequent seven to eight years through heap processing.
Austral Gold Limited
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Annual Report 2023
(1) see notes to the mineral resources & ore reserves statement on page 23
In 2023, the Company completed the construction of the Heap Reprocessing Project at
the Guanaco mine site, which is expected to be the main source of mineral production at
Guanaco/ Amancaya in the following years.
Cerro Buenos Aires Project
S
A
P
M
A
P
S
A
L
O
C
A
N
A
U
G
A
Y
A
C
N
A
M
A
Sierra Inesperada Project
Sierra Juncal Project
PALEOCENE
BELT
Austral Gold controls
an extensive portfolio
of +50,000 hectares
of mining properties.
Chile’s Paleocene
Belt hosts major gold
and silver deposits
and porphyry
copper mines.
Austral Gold Limited
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Annual Report 2023
Austral Gold Limited
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Annual Report 2023
GUANACO & AMANCAYA
MINE COMPLEX
1 Strategic location (220km from Antofagasta, Chile)
with + 50K hectares of mining property
2
3
Guanaco, high-sulphidation epithermal
deposit, and Amancaya a low sulphidation
epithermal deposit, both hosted in the
Paleocene/Eocene Belt
• 1,500 tpd milling circuit to agitation leaching
and Merrill-Crowe processing plant
• +3,000 tpd crushing, heap leaching, and CC cir-
cuit processing plant
4 Austral Gold historical production of
+ 500K gold-equivalent ounces since 2010
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Annual Report 2023
Casposo Manantiales
OVERVIEW
The Casposo mine is in the department of Calingasta, San Juan
Province, Argentina, approximately 150km from the city of San
Juan, and covers an area of 100.21km2. Casposo is a low sulfida-
tion epithermal deposit of gold and silver located in the eastern
border of the Cordillera Frontal geological province.
The Cordillera Frontal represents the eastern portion of the
Cordillera Principal that runs along the Chile-Argentine border for
approximately 1,500km. The Casposo gold– silver mineralisation is
Permian in age, and occurs in the extensive Permo-Triassic volca-
nic rocks of the Choiyoi Group, at both rhyolite, and underlying
andesitic rocks, where it is associated with NW-SE, E-W and N-S
striking banded quartz, chalcedony and calcite veins, typical of low
sulfidation epithermal environments. Post-mineralisation dykes
of rhyolitic, mafic, and trachytic composition often cut the vein
systems. These dykes, sometimes reaching up to 30m thickness,
are usually steeply dipping and north–south oriented. Mineralisa-
tion at Casposo occurs along a 10km long north- west to southeast
trending regional structural corridor, with the main Kamila Vein
system forming a 500m long sigmoidal set near the centre. The
Mercado Vein system is the northwest continuation of Kamila and
is separated by an east–west fault from the Kamila deposit.
In March 2016, Austral Gold acquired a controlling stake and
management of the Casposo gold and silver project. Since then,
Austral Gold undertook a complete revision of historical work
(geology, geochemistry, geophysics and drillings), and completed
a regional mapping at a 1:10,000 scale to identify potential oppor-
tunities for discovering additional mineralisation and ranking a
series of mine and brownfield exploration targets.
In March 2017, Austral Gold acquired an additional 19% of the
Casposo silver and gold project and in December 2019, it effec-
tively acquired the remaining 30%.
The Manantiales project is located immediately to the west and
adjacent to Casposo. Exploration rights and an option for exploita-
tion were granted by the Instituto Provincial de Exploraciones y
Explotaciones Mineras de la Provincia de San Juan (IPEEM) in 2019.
The Casposo Mine was placed on care and maintenance during
the June 2019 quarter and exploration activities that commenced
during the December 2019 quarter have been ongoing with the
goal of recommencing processing operations. Since then, Austral
has incurred approximately US$6,500 thousand on exploration
activities.
During 2023, Austral engaged a third-party consultant to prepare
a Mineral Resource Estimate (MRE) for Casposo and Manantiales,
including Manantiales, Mercado, B-Vein, and Julieta Veins. The
report is expected to be completed during Q2 2024.
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Annual Report 2023
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CASPOSO MANANTIALES
MINE COMPLEX
1 On Care & Maintenance since 2019 with the
strategic objective to restart operations
2 1,300 tpd crushing circuit to agitation leach
and Merril-Crowe processing plant
3 Historical 2010-2019 production of
530K gold-equivalent ounces
4 Camp facilities 21km from mine site
5 +70K hectares of land plus mining property
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Annual Report 2023
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EXPLORATION
Three years ago, we established a new exploration strategy
which includes the following:
• Find high-sulfidation gold and silver deposits in a high quality
land portfolio;
• Discover brownfields ounces at Amancaya, Casposo and Manantiales;
• Guanaco District: complete delineation at Sierra Inesperada to drill
the best ranked targets;
• New Opportunities: Identify and consolidate third-party projects with
potential near existing Austral Gold infrastructure;
• Explore other oxide and deeper gold-rich sulfide mineralisation
opportunities in the Chilean Paleocene-Eocene Belt
Austral Gold Limited
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Annual Report 2023
A total of 4,265 metres of diamond drill-
ing (“DD”) was conducted across 15 DD
holes in the Manantiales and Cerro
Amarillo areas, as announced on 30
January 2023.
Exploration
in Argentina
CASPOSO-MANANTIALES PROJECT, ARGENTINA
During FY23, the Group completed the drilling campaign that
started in FY22. A total of 4,265 metres of diamond drilling (“DD”)
was conducted across 15 DD holes in the Manantiales and Cerro
Amarillo areas, as disclosed on 30 January 2023.
The focus of the drilling program was to follow up on the results
achieved in previous drilling campaigns at the Manantiales vein,
as disclosed in the 27 July 2022 and 26 October 2021 announce-
ments. The drilling at the Manantiales vein intercepted some high
gold grades at the top and bottom of the central ore-shoot, indicat-
ing possible continuity at depth. The two best holes confirmed the
continuity of mineralisation in the central ore-shoot and opened
up potential upside at depth.
Drill hole MDH-022-68 appears to confirm shallow mineralisa-
tion and provides continuity to the previously reported drill hole
MDH-022-64. Additionally, drill hole MDH-022-72 intercepted gold
high-grade, further confirming the continuity of mineralisation in
the central ore-shoot and opening up potential upside at depth.
The best assay results received in Q1 2023 were:
MDH-22-72: 6.10 m @ 11.77 gpt gold and 10.0 gpt silver (incl.
1.10 m @ 54.03 gpt gold and 21.40 gpt silver)
MDH-22-68: 2.40 m @ 7.39 gpt gold and 18.0 gpt silver (incl. 1.30
m @ 12.93 gpt gold and 22.30 gpt silver)
Manantiales District
In FY23, we completed the geological model for the Manantiales
vein, and the Company hired an external consulting firm to assist
with the next steps for the Casposo-Manantiales project.
At the Cerro Amarillo area, two holes were drilled to validate new
structural controls in the Awada and La Puerta areas. Favorable
alteration was intercepted, but with discrete gold anomalies.
Austral Gold Limited
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Annual Report 2023
Casposo District
In FY23, a thorough analysis was conducted at the Julieta vein to differentiate the textural,
mineralogical, and structural arrangements of the main structure from secondary ones.
The Julieta vein predominantly consists of a breccia vein composed of quartz + carbon-
ate, often found alongside polymictic and monomictic breccias. Banded vein pulses are
infrequent in the main structure. The Company plans to perform an assessment of the
continuity of these structures at the Julieta vein.
At the Mercado vein, the historical database was validated, and the main stratigraphic
units, intrusive bodies, and mineralisation were verified in the field. An updated geological
model was completed and peer-reviewed, incorporating the interpretation of 16 cross
sections, a longitudinal section, a surface map, and 2450 and 2400 level plans. In all the
analysed sections, the Mercado vein is continuous except for an interruption in the junc-
tion zone with the MV1 vein and post-mineral faulting in the SE sector. Within the 350
meters of vein extension, two irregular mineralised ore shoots are formed.
During Q4 2023, the Company initiated geological modelling of the southeastern exten-
sions of the Inca and B-vein veins. The block, named Kamila SE, exhibits minimal miner-
alisation and appears structurally complex, influenced by abundant post-mineral andesitic
dykes. The highest grades seem to be associated with the unexploited sectors of Inca
2B and Inca 3.
In the second half of the year, the Company evaluated third-party opportunities to utilise
the processing plant at the Casposo-Manantiales mine complex. This evaluation process
is expected to continue into 2024. Additionally, a third-party consultant was engaged to
prepare a Mineral Resource Estimate (MRE) for the Manantiales and Casposo Districts,
covering Manantiales, Mercado, B-Vein, and Julieta Veins. The report is anticipated to
be completed in Q2 2024.
Casposo-
Manantiales
Project
Our presence in the
Triassic Choiyoi Belt is
in the Casposo District,
located on the eastern
edge of the Cordillera
Frontal (Calingasta
Department), about
170 km NW of the city
of San Juan
Figure: Casposo-Manantiales District, Argentina
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Annual Report 2023
JAGUELITO PROJECT, ARGENTINA
(Option agreement)
As announced on 2 December 2022, a 5,000-metre drilling campaign commenced at the Jaguelito project in the San Juan Province of
Argentina as part of the first stage of the option agreement with Mexplort Perforaciones Mineras SA (Mexplort) to acquire 50% of the
mining rights for the project (the Option Agreement).
During FY 2023, the Company drilled 4,331 meters of DDH at the Jaguelito Project in Argentina, which is part of the 5,000-meter program
committed under the 2022 option agreement with Mexplort under the First Stage of the Option Agreement set to expire in August 2024.
Austral incurred US$4,942 thousand in exploration expenditures as of 31 December 2023, exceeding the US$2,000 thousand required
for each of the First and Second Stages of the Option Agreement. Best intercepts were as follows:
Capote-Alcatraz target (Norte Zone)
DJN-003
26m @ 0.60 grams per tonne (gpt) gold and 7 gpt silver
Including 1.5m @ 1.12 gpt gold and 45 gpt silver
DJN-004
21m @ 1.24 gpt gold and 1 gpt silver
Including 3.0m@ 3.32 gpt gold and <0.5 gpt silver
La Cuña Norte target (Norte Zone)
DJN-006
4m@ 1.40 gpt gold and 26 gpt silver
Capote-Alcatraz target (Norte Zone)
DJN-003
DJN-004
26m @ 0.60 gpt gold and 7 gpt silver
Incl 1.5m @ 1.12 gpt gold and 45 gpt silver
21m @ 1.24 gpt gold and 1 gpt silver
Incl 3.0 m@ 3.32 gpt gold and <0.5 gpt silver
La Cuña Norte target (Norte Zone)
DJN-006
4m@ 1.40 gpt gold and 26 gpt silver
Sagitario (Sur) target
DJNS-001A
4m @ 0.70 grams per tonne (gpt) gold and 17 gpt silver
Including 4.4m @ 1.44 gpt gold and 30 gpt silver
A total of eight targets were identified across two zones, Norte and Sur, and drilling was conducted at the La Cuña Norte (Norte) and
Sagitario (Sur) targets.
Jaguelito Sur Target Area:
• Preliminary analysis identified five structures related to phreatomagmatic activity, suggesting potential mineralisation in the sector.
• The only drill hole completed in the Sagitariio target during this campaign intercepted strong alteration consisting of silica flooding in a
quartz-alunite-jarosite vuggy silica interval developed in phreatomagmatic rocks, validating the exploratory model.
Jaguelito Norte:
• Relogging of drillholes and interpretation of sections were completed.
• The faults that controlled the configuration of the Miocene basin, their control in phreatomagmatism, and the relationship with alteration
and mineralisation were identified and modelled.
• The La Cuña (F1CÑ) and Capote (F1CA) faults configured the initial geometry of the basin.
• In general, the central block deepens from NW to SE, where the bottom of the depocenter is not known.
• Several successive pulses of dilation - subsidence and phreatomagmatism were modelled, controlled to the west by the fault system
and to the east by a set of faults with eastern vergence, with activity advancing progressively towards the east.
• The diatremes generated in the earliest events have been submerged and covered by the volcanic sequences associated with the
evolution of the basin. However, the later diatremes maintain a shallower location.
• The alteration modelling suggests a main event, evidenced by a sub horizontal distribution centered at approximately 4,000 m.a.s.l. in
all structural blocks.
• A subordinate event, identified at deeper levels, may correspond to precursor alterations with little or no associated mineralisation.
Austral Gold Limited
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Annual Report 2023
Next steps and activities on Jaguelito are to be defined going forward in conjunction with
Mexplort, owner of the project.
Figure: Jaguelito Project, Argentina
SIERRA BLANCA, ARGENTINA
(Option agreement)
In FY23, no major activities were conducted in Sierra Blanca where the Company owns
51% interest as of 31 December 2023. During FY23, the Company did not complete the
second tranche of the Purchase Agreement to acquire a further 29% interest in the project
Austral Gold Limited
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Annual Report 2023
Exploration
in Chile
GUANACO-AMANCAYA MINE COMPLEX, CHILE
In FY23, we focused on Natalia and Los Nanos areas, which are near the Amancaya
and Guanaco mine complex. Our efforts included surface mapping, relogging of
historical drillholes, and geological interpretation.
In addition, the Company conducted a comprehensive review of the total exploration
projects in Chile and opted to initiate a rationalization program aimed at decreasing
the number of exploration tenements. As a result, the Company has reduced its overall
portfolio from around 137,022 hectares to 51,345 hectares in Chile.
Los Nanos:
• a set of cross sections were reinterpreted, considering new logs and a revision of
drill core.
• The geological team’s analysis indicates that two main bodies can be modeled, and the
continuity towards the East of the geological controls of these two mineralised bodies
extends over a length of more than 250 meters.
• The geological setting in Los Nanos appears similar to the Cachinalito System, with
structures dipping north and faults/feeders dipping south. The greatest difference lies
in the inclination of the ore bodies. Our analysis suggest that this may be related to the
intensity of syn/post mineral tilting in each structural block, resulting in bodies with
gentle dips and thicknesses in the Los Nanos sector.
Dumbo and Perserverancia:
• We continued with geological modelling, utilising surface mapping, systematic spec-
troscopy, historical drillhole re-logging and metallurgical and channel sampling tests
to explore additional opportunities for exploitation.
• Ongoing modelling highlights the presence of under explored favourable host rock in
the southern structural block.
• Two structural blocks separated by the Dumbo fault were recognised.
• A sequence of dacitic tuffs were identified in both blocks. These tuffs are exposed and
partially exploited towards the Defensa pit to the northeast, but preserved towards the
Perseverancia area. This confirms a potential target towards the southwest. Known
mineralisation of both Au and Cu is best developed in these volcanic rocks, as well as
in phreatomagmatic breccias.
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Annual Report 2023
Los Nanos
Process
Plant
Cachinalito - Natalia
Dumbo - Defensa
Guanaco Mine
Exploring within the
mine footprint to
increase production
and LOM
Cachinalito West
Guanaquito
Perseverancia
Figure: Guanaco District, Chile
SIERRA INESPERADA
In FY23, minor activities were conducted in Sierra Inesperada, located 10km SW of
Guanaco. Next steps on this project are the preparation of a drill plan to follow-up the
gold and silver intercepts obtained in previous drilling phases and drill the remaining
untested areas. Multiple targets have confirmed an HS hydrothermal activity controlled
by phreatomagmatic complexes with silver mineralisation vectoring to potential blind
gold mineralization.
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Annual Report 2023
AMANCAYA
In FY23, we continued exploiting the Amancaya underground mine at the deepest levels
of the deposit’s main vein, which we expect to continue in 2024 at a lower path through a
rental agreement with a third party. During 2023, we designed a drilling program with the
goal of connecting two segments of the Oeste Vein, albeit its starting date is to be defined.
Amancaya Mine
Amancaya is a
low sulfidation (LS)
epithermal gold-silver
deposit with further
expansion potential
through exploration
DAM-026
24.9 g/t Au & 77 g/t Ag
1.17m
DAM-035
20.1 g/t Au & 5 g/t Ag
1.50m
DAM-024
10.2 g/t Au & 55 g/t Ag
2.41m
DAM-036
5.2 g/t Au & 5 g/t Ag
3.85m
Figure: Amancaya Project, Chile
Austral Gold Limited
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Annual Report 2023
Mining
Investments
Building an equity portfolio
of mining companies
Austral Gold Limited
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Annual Report 2023
EQUITY INVESTMENTS
UNICO SILVER
ENSIGN MINERALS
Deseado Massiff, Santa Cruz, Argentina
17% interest
Carlin Trend, Utah, USA
12% interest
Unico Silver is a pure-play silver development company listed on
the ASX that has increased resources through exploration and
acquisitions
• Austral’s interest in Unico Silver was acquired through the 2023
sale of SCRN Properties, owner of the Pinguino project
• Its flagship asset is the new Cerro Leon project comprising
two adjacent silver and gold districts, with land holdings in the
mining-friendly province of Santa Cruz, Argentina
The former producing Mercur mine produced approximately 2.6
million ounces of gold
• Project operator Ensign Minerals controls approximately 6,200
hectares in the Mercur district on primarily patented claims
• Excellent infrastructure, easy access, favorable permitting
process, and world-class deposits in the area
PAMPA METALS
RAWHIDE MINE
Piuquenes Project, San Juan, Argentina
3% interest
Walker Line, Nevada, USA
25% interest
Pampa Metals is a copper-gold exploration company listed on the
Canadian Stock Exchange, Frankfurt, and OTC exchanges
Located within the prolific Walker Lane gold-silver belt, Rawhide
has produced close to 2 million ounces of gold since 1990*
• Austral’s interest in Pampa Metals was acquired through the
• The Operation is fully permitted with further identified explora-
takeover of Revelo Resources in 2021
tion targets
• In November 2023, Pampa Metals announced it had entered into
an Option and Joint Venture Agreement for the acquisition of an
80% interest in the Piuquenes Copper-Gold Porphyry Project in
San Juan Province, Argentina
• (1)On 20 December 2023 (the “Petition Date”) Rawhide Mining
LLC filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code
Name
Unico
Silver Ltd
Pampa
Metals Corp.
Holding
Type
Projects Location
Flagship
Project
ASX Listed
17%
Exploration
Argentina
Cerro Leon Project
CSE Listed
3%
Exploration
Argentina
Piuquenes Project
Ensign Minerals Inc Private
12%
Exploration
USA
Rawhide
Mine LLC
(1) See Rawhide Mine above
Private
25%
Restructuring(1)
USA
Mercur
Project
Rawhide
Mine
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Annual Report 2023
FINANCIAL STATEMENTS
Austral Gold Limited
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Annual Report 2023
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
All figures are reported in thousands of US$
Continuing operations
Sales revenue
Cost of sales (including depreciation and amortisation)
Gross profit
Other income
Other expenses
Administration expenses
Finance income
Finance costs
Share of loss of associates
(Loss) before income tax
Income tax benefit
(Loss) after income tax expense
(Loss) attributable to:
Owners of the Company
Non-controlling interests
Items that may not be classified subsequently to profit or loss
Foreign currency translation
Total comprehensive (loss) for the year
Comprehensive (loss) attributable to:
Owners of the Company
Non-controlling interests
(Loss) per share (cents per share):
Basic (loss) per share
Diluted (loss) per share
(1) note 41
The notes on pages (73) to (105) are an integral part of these consolidated financial statements.
For the year ended 31 December
Note
2023
2022
Restated (1)
15
6
7
8
9
10
11
24
13
14
14
47,729
(47,183)
546
3,853
(8,889)
(6,145)
4,422
(1,678)
(60)
(7,951)
708
(7,243)
(7,229)
(14)
(7,243)
1
(7,242)
(7,228)
(14)
(7,242)
(1.18)
(1.18)
49,710
(47,144)
2,566
1,693
(4,972)
(8,404)
2,134
(1,922)
(676)
(9,581)
1,315
(8,266)
(8,257)
(9)
(8,266)
(17)
(8,283)
(8,274)
(9)
(8,283)
(1.35)
(1.35)
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Annual Report 2023
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
All figures are reported in thousands of US$
As at 31 December
Note
2023
2022
Restated(1)
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Prepaid income tax
Other financial assets
Inventories
Assets held for sale
Total current assets
Non-current assets
Other receivables
Prepaid income tax
Other financial assets
Mine properties
Property, plant and equipment
Exploration and evaluation expenditure
Investments accounted for using the equity method
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Income tax payable
Employee entitlements
Loans and borrowings
Lease liabilities
Total current liabilities
Non-current liabilities
Trade and other payables
Provisions for reclamation and rehabilitation
Loans and borrowings
Lease liabilities
Employee entitlements
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Non-controlling interest
Total equity
16
17
18
19
20
17
18
21
22
23
24
25
26
28
22
25
27
28
22
26
13
29
30
31
32
1,039
2,356
83
3,958
9,699
-
926
2,422
1,076
641
8,946
8,294
17,135
22,305
1,127
126
2,127
6,259
49,616
27,894
-
87,149
104,284
904
476
-
4,054
42,257
27,261
60
75,012
97,317
23,121
15,690
-
2,990
13,540
1,169
40,820
3
13,695
2,568
1,143
18
4,464
21,891
62,711
41,573
770
4,053
7,382
1,925
29,820
1,013
10,924
1,264
911
35
4,535
18,682
48,502
48,815
109,114
109,114
(66,549)
(1,157)
165
41,573
(59,320)
(1,158)
179
48,815
(1) note 41
The notes on pages (73) to (105) are an integral part of these consolidated financial statements.
Austral Gold Limited
70
Annual Report 2023
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the years ended 31 December 2023 and 2022
All figures are reported
in thousands of US$
Note
Issued
capital
Accumulated
losses
Reserves
Non-
controlling
interest
Balance at 31 December 2021
109,114
Loss for the year
Foreign exchange movements from
translation of financial statements to US$
Total comprehensive income/ (loss)
-
-
-
Balance at 31 December 2022
109,114
Loss for the year
Foreign exchange movements from
translation of financial statements to US$
Total comprehensive (loss)
Balance at 31 December 2023
-
-
-
109,114
The notes on pages (73) to (105) are an integral part of these consolidated financial statements.
(51,063)
(8,257)
-
(8,257)
(59,320)
(7,229)
-
(7,229)
(66,549)
(1,141)
188
-
(17)
(17)
(1,158)
-
1
1
(1,157)
(9)
-
(9)
179
(14)
-
(14)
165
Total
57,098
(8,266)
(17)
(8,283)
48,815
(7,243)
1
(7,242)
41,573
Austral Gold Limited
71
Annual Report 2023
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
All figures are reported in thousands of US$
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents, at the end of the year
Net increase/(decrease) in cash and cash equivalents
Causes of change in cash and cash equivalents
Operating activities
Loss after income tax
Adjustments for
Income tax benefit/(expense) recognized in loss
Income tax collection
Impairment of exploration and evaluation expenditure
Depreciation and amortisation
Gain on sale of equipment
Gain on sale of subsidiary
Exclusivity fee on option agreement
Non-cash net finance charges
Provision for reclamation and rehabilitation
Allowance for doubtful accounts
Inventory write-down
Non-cash employee entitlements
Share of loss of associates
Loss in fair value of other financial assets
Gain in fair value of other financial assets
Net cash from operating activities before change in assets and liabilities
Changes in working capital
Decrease in inventory
(Increase) /decrease in trade and other receivables
Increase in trade and other payables
(Decrease) in employee entitlements
Net cash provided through operating activities
Cash flows from investing activities
Additions to property, plant and equipment
Proceeds from sale of subsidiary
Proceeds from sale of equipment
Proceeds from exclusivity fee on option agreement
Payment for investment in exploration and evaluation
Payment for investment in mine properties
Payment for equity investments
Payment for other financial assets
Proceeds from sale of other financial assets
Net cash used in investing activities
Cash flows from financing activities
Restricted proceeds from convertible note offering
Proceeds from loans and borrowings
Repayment of loans and borrowings
Interest paid on loans and borrowings
Repayment of lease liabilities
Interest paid on leases
Net cash used in financing activities
Net increase/ (decrease) in cash and cash equivalents
(1) note 41
The notes on pages (73) to (105) are an integral part of these consolidated financial statements.
For the year ended 31 December
Note
2023
2022
Restated (1)
926
1,039
113
2,346
926
(1,420)
(7,243)
(8,266)
7/8
7
7
24
8
7
22
20
7
21
(708)
928
3,981
6,048
(46)
(1,964)
(100)
1,511
(126)
(107)
302
(20)
60
992
(1,033)
2,475
(1,055)
1,519
6,048
(1,060)
7,927
(11,283)
3,250
113
100
(4,614)
(9)
-
(4)
22
(12,425)
591
17,955
(10,777)
(720)
(2,252)
(186)
4,611
113
(1,315)
2,134
926
7,778
(590)
-
-
1,089
(1,094)
238
-
27
676
968
-
2,571
1,620
(690)
7,624
(172)
10,953
(6,434)
-
675
-
(5,790)
(30)
(124)
(27)
135
(11,595)
-
11,735
(8,842)
(330)
(3,133)
(208)
(778)
(1,420)
Austral Gold Limited
72
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Austral Gold Limited (the “Company”) is a company limited by shares that is incorporated and domiciled in Australia.
The Company’s shares are publicly traded on the Australian Securities Exchange with the symbol AGD, on the TSX Venture
Exchange with the symbol AGLD and on the OTCQB Venture Market with the symbol AGLDF.
These consolidated financial statements (“financial statements”) as at and for the year ended 31 December 2023 comprise
the Company and its subsidiaries (together referred to as the “Group”). The nature of the operations and principal activities of the Group are
described in the Directors’ Report.
The consolidated annual financial statements of the Group as at and for the year ended 31 December 2023 are available upon
request from the Company’s registered office at Level 5, 126 Phillip Street, Sydney NSW 2000, Australia at www. australgold.com.
2. BASIS OF PREPARATION
The financial statements are general purpose financial statements which have been prepared in accordance with Austra-
lian Accounting Standards adopted by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act
2001, as appropriate for profit oriented entities. The consolidated financial statements also comply with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. They were authorised
for issue by the Company’s Board of Directors on 28 March 2024.
Details of the Group’s accounting policies are described in Note 41.
2.1 Functional and Presentation currency
These consolidated financial statements are presented in United States dollars (US$), which is the Company’s functional
currency. The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 and in accordance with the legislative instrument, amounts in the consolidated financial statements have been
rounded off to the nearest thousand dollars, unless otherwise stated.
Change in classification
During the year ended 31 December 2023, the Group updated the classification of certain income, expenses and cash
flow items to better reflect the nature of the items. The effects of such reclassifications on the comparative period are
disclosed in Note 41 to the financial statements.
2.2 Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supple-
mentary information about the parent entity is disclosed in note 36.
3. GOING CONCERN
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business
activities and the realisation of assets and settlements of liabilities in the ordinary course of business. During the year
ended 31 December 2023, the Group incurred a net loss after tax of US$7,243 thousand (year ended 31 December
2022: US$8,266 thousand net loss after income tax) with net cash inflows of US$7,927 thousand in 2023 (2022: inflows
of US$10,953 thousand) generated through operating activities. Net cash used in investing activities totaled US$12,425
thousand during FY23 (FY22:US$11,595 thousand) while net cash received from financing activities totaled US$4,611
thousand during FY23 (FY22: outflows US$778 thousand). At 31 December 2023, the Group has net assets of US$41,573
thousand and net current liabilities of US$23,685 thousand (31 December 2022: US$48,815 thousand and US$7,515
thousand, respectively). For the year ended 31 December 2023, the net increase of loans and borrowings was US$7,462
thousand (2022: US$2,893 thousand).
Management and the Directors prepared cashflow forecasts that are dependent on a combination of the following main
assumptions:
• Renewal of the existing short-term fully drawn loans and borrowings as at 31 December 2023 from lenders disclosed
in Note 28 Loans and Borrowings, as follows: Santander Bank (US$3,400 thousand), Banco de Credito e Inversiones
SA (BCI) (US$3,500 thousand), Inversiones Financiera del Sur S.A. (US$2,555 thousand), Eduardo Elsztain (US$1,700
thousand) and Saul Zang (US$300 thousand). These loans all mature on or before 30 June 2025 and are assumed to
be renewed in full when they mature.
• Continuing the extension of payment terms with Guanaco/Amancaya suppliers. On 31 December 2023 US$11,777
thousand of the aggregate $15,179 thousand of trade payables disclosed in Note 25 Trade and Other Payables are
overdue. Extension of payment terms with overdue suppliers has not been formally agreed.
• Obtaining additional loans and borrowings, equity contributions or other forms of assistance from related parties
as required by the Group. Mr. Elsztain, Mr. Zang and their related entities Inversiones Financieras del Sur S.A. and
Consultores Asset Management S.A. have confirmed their intention, (rather than binding commitment) to continue
providing ongoing financial support and assistance, as deemed necessary.
Austral Gold Limited
73
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
• Achieving production of 26,000 – 28,000 gold equivalent ounces (‘GEOs’) in 2024 with all in sustaining costs (AISC) in
the range of US$1,300-US$2,283 and an annual average AISC of US$1,533 per GEO, by executing on the integration
of the agitation leaching and heap leaching processes, using material from the Heaps and remaining ore and stocks
from the Amancaya and Guanaco mines.
• Achieving average 2024 prices realised per gold equivalent ounce of approximately US$2,016.
• Realisation of the carrying value at 31 December 2023 of non core assets through sale.
The going concern basis presumes that a combination of the above funding and operational solutions, as deemed
appropriate by the Directors, will be achieved and that the realisation of assets and settlement of liabilities will occur in
the normal course of business. The combined effect of the above represents a material uncertainty as to whether the
Group would continue as a going concern. The directors of Austral Gold consider that the Group will continue to fulfil
all obligations as and when they fall due for the foreseeable future and accordingly consider that the Group’s financial
statements should be prepared on a going concern basis. Accordingly, the financial statements do not include any adjust-
ments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of
liabilities that might be necessary should the Group not continue as a going concern.
4. USE OF ESTIMATES AND JUDGEMENTS
In preparing these financial statements, Management has made judgements, estimates and assumptions that affect
the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospec-
tively. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment in the year ended 31 December 2023 are detailed below:
Carrying value of Mine Properties
The Group estimates its ore reserves and mineral resources annually at each year end, based on information compiled
by Competent Persons as defined in accordance with the Australasian code for reporting Exploration Results, Mineral
Resources and Ore Resources (JORC code 2012). The estimated quantities of economically recoverable reserves are
based upon interpretations of geological models and require assumptions to be made regarding factors such as estimates
of short and long-term exchange rates, estimates of short and long-term commodity prices, future capital requirements
and future operating performance. Changes in reported reserves estimates can impact the carrying amount of mine
development (including mine properties, property, plant and equipment and exploration and evaluation assets), the
provisions for reclamation and rehabilitation (further details on the mine closure provisions are included in note 27), the
recognition of deferred tax assets (further details on deferred tax assets are included in note 13), as well as the amount
of amortisation charged to the statement of profit or loss.
Impairment
Significant judgements, estimates and assumptions are required in determining value in use or fair value less costs of
disposal. This is particularly so in the assessment of long life assets. It should be noted that the CGU recoverable amounts
are subject to variability in key assumptions including, but not limited to, gold and silver prices, currency exchange rates,
discount rates, production profiles and operating and capital costs. A change in one or more of the assumptions used
to determine value in use or fair value less costs of disposal could result in a change in a CGU’s recoverable amount
(further details on the value of the CGU’s are included in note 21).
Carrying value of exploration and evaluation assets
The Group tests at each reporting date whether there are any indicators of impairment as identified by AASB 6 “Exploration
for and Evaluation of Mineral Resources”. Where indicators of impairment are identified, the recoverable amounts of the
assets are determined, and an impairment is recorded when the carrying value exceeds recoverable value. In assess-
ing indicators of impairment, assumptions relating to whether the exploration and evaluation activity will be recouped
through successful development and exploitation of the area are made.
Mine closure provisions
Obligations associated with exploration and mine properties are recognised when the Group has a present obligation,
the future sacrifice of the economic benefits is probable, and the provision can be measured reliably. The provision is
measured at the present value of the future expenditure and a corresponding rehabilitation asset is also recognised. On
an ongoing basis, the rehabilitation will be remeasured in line with the changes in the time value of money (recognised
as an expense and an increase in the provision), and additional disturbances (recognised as additions to a correspond-
ing asset and rehabilitation liability). The calculation of this provision requires assumptions such as application of envi-
ronmental legislation, mine closure dates, available technologies and engineering cost estimates. The related carrying
amounts are disclosed in note 27.
Austral Gold Limited
74
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Measurement of fair values
The Group has established a control framework with respect to the measurement of fair values.
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows:
i. Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities
ii. Level 2 — inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices), or indirectly (i.e. derived from prices)
iii. Level 3 — inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change has occurred.
The Group holds listed equity securities on the Australian and Canadian stock exchanges and listed Argentine sovereign
bonds at fair value, which are measured at the closing bid price at the end of the reporting period. These financial assets
are held at fair value fall within Level 1 of the fair value hierarchy. The Group also holds options which rely on estimates
and judgements to calculate a fair value for these financial instruments using the Black Scholes model. These financial
assets held at fair value fall within Level 3 of the fair value hierarchy.
Further information about the assumptions made in measuring fair values is included in the following notes:
• Note 17—Trade and Other receivables
• Note 18—Other financial assets
• Note 33 — Financial instruments.
5. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW/AMENDED AASB
Adoption of other narrow scope amendments to IFRSs and IFRS Interpretations
There are a number of new and revised Standards that are applicable for the first time for the year ended 31 December
2023. These Standards have been adopted by the Group for the first time for the year ended 31 December 2023. In
addition, a number of new standards and amendments to standards are effective for annual periods beginning after
January 2024 and earlier application is permitted; the Group has early adopted amendments effective for IAS 7 State-
ment of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The amendments introduce additional disclosure
requirements for companies that enter into supplier finance arrangements.
The Group has not early adopted any other new or amended standards in preparing these consolidated financial state-
ments as the impact of adoption was not material to the Group’s Consolidated Financial Statements.
6. COST OF SALES
All figures are reported in thousands of US$
Production
Staff costs
Royalty
Mining Fees
Gold precipitate stolen
Inventory movements
Total cost of sales before depreciation and amortisation expense
Depreciation of plant and equipment
Amortisation of mine properties
Total depreciation and amortisation expense
Total cost of sales
Severance included in staff costs
For the year ended 31 December
2023
31,107
9,707
1,198
523
-
(1,363)
41,172
5,562
449
6,011
47,183
317
2022
26,864
9,307
1,134
594
838
736
39,473
6,663
1,008
7,671
47,144
467
Austral Gold Limited
75
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
7. OTHER INCOME
All figures are reported in thousands of US$
Gain on sale of subsidiary (note 20)
Gain on revaluation of equity securities (note 24)
Gain on sale of financial assets
Sale of equipment
Sale of inventory parts
Equipment rental
Exclusivity fee on Colossus Agreement (note 23)
Other
Total other income
8. OTHER EXPENSES
All figures are reported in thousands of US$
Impairment loss exploration and evaluation assets (note 23)
Cost of equipment sold
Cost of inventory parts sold
Loss on fair value of financial assets
Care and maintenance
Rawhide option and due diligence expenses (note 24)
Exploration expenses
Inventory allowance at non-operating mine
Other
Total other expenses
9. ADMINISTRATION EXPENSES
All figures are reported in thousands of US$
Office and utility costs
Staff costs (1) (2)
Consulting and professional services
Non-executive director fees (2)
Depreciation on equipment
Business, property and other taxes
Other
Total administration expenses
(1) Severance included in staff costs
(2) Amounts for defined contribution plans included in staff costs and director fees
10. FINANCE INCOME
All figures are reported in thousands of US$
Interest income
Gain from foreign exchange
Present value adjustment to mine closure provision
Total finance income
For the year ended 31 December
2023
1,964
1,012
21
113
129
222
100
292
2022
-
-
-
675
399
298
-
321
3,853
1,693
For the year ended 31 December
2023
3,981
67
55
992
2,143
617
365
272
397
8,889
2022
926
85
504
968
2,068
-
421
-
-
4,972
For the year ended 31 December
2023
1,039
2,767
1,194
300
19
652
174
6,145
138
27
2022
799
4,537
1,634
300
33
924
177
8,404
493
21
For the year ended 31 December
2023
140
4,108
174
4,422
2022
4
2,130
-
2,134
Austral Gold Limited
76
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
11. FINANCE COSTS
All figures are reported in thousands of US$
Loss from foreign exchange
Interest expense
Interest expense on leases
Present value adjustment to mine closure provision
Present value adjustment to GST/VAT receivable
Total finance costs
12. AUDITOR’S REMUNERATION
All figures are reported in US$
Audit and review services
Auditors of the Group-KPMG
Audit and review of financial statements-Group
Audit and review of financial statements-controlled entities
13. INCOME TAX EXPENSE
All figures are reported in thousands of US$
(A) Income tax expense comprises:
Current income tax (benefit)/expense
Deferred income tax expense
Income tax
(B) Reconciliation of effective income tax rate:
Loss before tax
Prima facie income tax (benefit)/expense calculated at 30%
Difference due to blended overseas tax rate*
Share of loss of associates
Non-deductible expenses
Prior year deferred income tax expense adjustments
Prior year current income tax true up
Recognition of previously unrecognised deductible temporary differences
and tax losses
Income tax
* Chile tax rate: 27% (31 December 2022: 27%). Argentina tax rate: 30-25% (31 December 2022: 30-25%%).
For the year ended 31 December
2023
-
1,216
179
138
145
1,678
2022
842
452
208
420
-
1,922
For the year ended 31 December
2023
2022
110,839
105,700
216,539
113,343
99,200
212,543
For the year ended 31 December
2023
(637)
(71)
(708)
(7,951)
(2,386)
460
16
740
87
(637)
1,012
(708)
2022
777
(2,092)
(1,315)
(9,581)
(2,874)
1,008
186
(921)
690
-
596
(1,315)
Austral Gold Limited
77
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in
thousands of US$
(C) Deferred tax assets and liabilities
Deferred tax assets
Other receivable
Inventory
Mining concessions brought
Accrual for mine closure
Financial assets
Tax losses carried forward
Payroll accrual
Other
Leasing
31 December 2023
31 December 2022
Chile Argentina
Other
Total
Chile Argentina
Other
Total
83
77
-
2,728
699
6,857
295
36
793
-
11
46
842
-
375
-
26
-
-
-
-
-
-
83
88
46
3,570
699
7,337
14,569
-
-
-
295
62
793
224
69
-
1,932
650
5,860
268
-
902
-
44
45
686
-
631
-
191
-
-
-
-
-
-
224
113
45
2,618
650
7,226
13,717
-
-
-
268
191
902
Allowance for tax carry forward
-
(1,300)
(7,337)
(8,637)
-
(1,550)
(7,226)
(8,776)
Deferred tax assets
Deferred tax liabilities
Exploration assets and property,
plant and equipment
Deferred income
Property, plant and equipment
inflation adjustment
Leasing assets
Deferred tax liabilities
Net deferred tax liabilities
Movement in deferred tax balances
Opening balance
Exchange rate difference
Charged to profit or loss
Closing balance
11,568
(13,627)
(597)
-
-
-
-
(881)
(927)
(15,151)
(3,583)
-
(881)
(881)
-
-
-
-
-
-
-
11,568
9,905
47
(13,627)
(12,512)
(597)
(774)
-
-
(881)
-
(415)
(927)
(725)
(16,032)
(14,011)
(4,464)
(4,106)
(4,106)
(368)
(61)
(4,535)
(6,627)
-
523
(3,583)
-
(513)
(881)
-
61
-
71
-
2,521
-
(4,464)
(4,106)
-
(415)
(368)
20
(8)
(380)
(368)
-
-
-
(61)
-
(61)
(61)
9,952
(12,512)
(774)
(476)
(725)
(14,487)
(4,535)
(20)
(6,627)
8
(49)
(61)
-
2,092
(4,535)
Deferred tax assets have not been recognised in respect to tax losses for certain entities of the Group. See Note 38 for details.
(D) The Group operates in Australia, which has enacted new legislation to implement the global minimum top-up tax in accordance with
Pillar Two of the OECD/G20 Two-Pillar Solution. The Group and its subsidiaries (note 35) operate in various jurisdictions with statutory
income tax rates greater than 15%, with the exception of Guanaco Mining Company, incorporated in the British Virgin Island , which is
not an operating company and has no taxable income. The Group has determined there is no current tax impact related to the top-up
tax legislation for the year ended 31 December 2023.
14. EARNINGS PER SHARE
All figures are reported in thousands of US$
Net loss attributable to owners
Weighted-average number of ordinary shares (basic)
Weighted-average number of ordinary shares (diluted) at 31 December
Basic earnings (loss) per ordinary share (cents)
Diluted earnings (loss) per ordinary share (cents)
For the year ended 31 December
2023
(7,229)
2022
(8,257)
612,311,353
612,311,353
612,311,353
612,311,353
(1.18)
(1.18)
(1.35)
(1.35)
Austral Gold Limited
78
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
15. OPERATING SEGMENTS
Management have determined the operating segments based on reports reviewed by the Chief Operating Decision Maker
(“CODM”). The CODM considers the business from both an operations and geographic perspective and has identified
two reportable segments, Guanaco/Amancaya which is based in Chile and Casposo which is based in Argentina. The
CODM monitors the performance in these two regions separately. During the year ended 31 December 2023, the Group
earned 100% of its consolidated revenue from sales made to one customer (2022-95% of its consolidated revenue from
sales made to one customer).
All figures are reported
in thousands of US$
Revenue:
Gold
Silver
Cost of sales
Depreciation and
amortisation expense
Other income
Other expenses1
Administration
expenses
Finance income
Finance expenses
Share of loss of
associates
Income tax (expense)/
benefit
Segment (loss)
Segment assets
Segment liabilities
Capital expenditure
For the year ended 31 December 2023
For the year ended 31 December 2022
Guanaco/
Amancaya
Casposo
Group and
unallocated
items
Consolidated
Guanaco/
Amancaya
Casposo
Group and
unallocated
items
Consolidated
45,872
1,857
(41,172)
(6,011)
-
-
-
-
-
-
-
-
45,872
47,772
1,857
1,938
(41,172)
(39,473)
(6,011)
(7,671)
-
-
-
-
-
-
-
-
249
474
(2,906)
(2,537)
3,130
(3,446)
3,853
-
(8,889)
(1,290)
1,072
(1,782)
619
(1,900)
47,772
1,938
(39,473)
(7,671)
1,693
(4,972)
(2,963)
(34)
(3,148)
(6,145)
(4,791)
(63)
(3,550)
(8,404)
1,986
(1,307)
396
(182)
2,040
(189)
4,422
425
(1,678)
(1,608)
1,008
(278)
-
-
(60)
(60)
-
-
701
(36)
(676)
2,134
(1,922)
(676)
1,221
(513)
-
708
1,822
(380)
(127)
1,315
(3,174)
(2,396)
(1,673)
(7,243)
(2,876)
(423)
(4,969)
(8,266)
71,868
50,966
12,044
14,163
18,253
104,284
4,985
919
6,760
2,943
62,711
15,906
64,518
39,708
8,780
15,332
17,467
5,783
2,864
3,011
2,211
97,317
48,502
13,855
1 Includes Impairment of US$2,328 related to Guanaco/Amancaya and US$1,653 related to Group and unallocated items.
Geographic information:
All figures are reported in thousands of US$
Revenue by geographic location
Chile
Total revenue
All figures are reported in thousands of US$
Non-current assets by geographic location
Chile
Argentina
United States
Canada
British Virgin Islands
Total non-current assets
For the year ended 31 December
2023
2022
47,729
47,729
49,710
49,710
For the year ended 31 December
2023
2022
66,724
19,400
-
915
110
60,074
14,768
60
-
110
87,149
75,012
Austral Gold Limited
79
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
16. CASH AND CASH EQUIVALENTS
All figures are reported in thousands of US$
Cash at call and in hand
Short-term investments
Total cash and cash equivalents
Reconciliation of Cash
As at 31 December
2023
1,039
-
1,039
2022
926
-
926
Cash at the end of the financial year as shown in the Statement of Cash Flows, is reconciled to items in the Statement of Financial
Position as follows:
Cash and cash equivalents
Restricted cash received from private placement of convertible note offering
(note 25.2)
Bank overdraft
Cash and cash equivalents
670
591
(222)
1,039
926
-
-
926
Risk Exposure
The Group’s exposure to interest rate risk is discussed in note 33. The maximum exposure to credit risk at the reporting
date is the carrying amount of each class of cash and cash equivalents mentioned above.
17. TRADE AND OTHER RECEIVABLES
All figures are reported in thousands of US$
Current
Trade Receivables
Other receivables
GST/VAT receivable
Total current receivables
Non-current
GST/VAT receivable
Other receivables
Total non-current receivables
Allowance for doubtful accounts
Net non-current receivables
Trade debtors ageing
The ageing of trade receivables is 0-30 days
>30 days
As at 31 December
2023
668
911
777
2,356
540
1,032
1,572
(445)
1,127
668
-
2022
808
611
1,003
2,422
1,117
339
1,456
(552)
904
808
-
As part of the Other receivables disclosed above, the main balances are the receivables from Unico disclosed in note 20. These have
been discounted using the following US treasury yield rates:
Due date
25 November 2024(1)
25 November 2025(2)
(1) current other receivable
(2) non-current other receivable
All figures are reported in thousands of US$
Undiscounted receivable
Discounted receivable
Discount rate (%)
750
1,000
1,750
716
915
1,631
5.18
4.73
1.1 Past due but not impaired
There were no receivables past due at 31 December 2023 (31 December 2022: nil).
1.2 Fair value and credit risk
Due to the short-term nature of trade receivables, their carrying amount is assumed to approximate their fair value. Refer
to note 33 for more information on the risk management policy of the Group and the credit quality of the receivables.
1.3 Key customers
During 2023 the Group is reliant on one customers to which gold and silver produced from the Guanaco/Amancaya mines
are sold. During 2022, the major customer purchased 95% of sales and the other customer purchased the remaining
5% of sales.
Austral Gold Limited
80
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
18. OTHER FINANCIAL ASSETS
All figures are reported in thousands of US$
Current
Listed bonds — level 1
Listed equity securities — level 1
Unico Silver options— level 3 (note 20)
Unlisted equity securities, Ensign—level 3
Ensign warrants — level 3
Total current other financial assets at fair value
Non-Current
Listed equity securities — level 1
Total non-current other financial assets at fair value
As at 31 December
2023
23
2,427
496
1,012
-
3,958
2,127
2,127
2022
23
590
-
-
28
641
-
-
The table above sets out the Group’s assets and liabilities that are measured and recognised at fair value at the end of
each reporting period with any movements recorded through the profit and loss statement.
Non-current listed equity securities refers to listed equity securities that will be released from escrow on 1 March 2025.
Listed equity securities and bonds are shares of Australian and Canadian listed mining companies nominated in A$ and
C$ and sovereign bonds nominated in ARS as at 31 December 2023 and 31 December 2022, respectively.
Level 3 recurring fair value
Reconciliation of Level 3 fair values
The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values.
All figures are reported in thousands of US$
Equity securities
Options
Balance at 1 January 2022
Loss included in financial cost
Balance al 31 December 2022
Addition from sale of SCRN Properties Ltd. (note 20)
Gain on revaluation of equity securities (note 24)
Balance al 31 December 2023
-
-
-
1,012
1,012
86
(58)
28
712
(244)
496
Unlisted equity securities
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation
techniques to measure the fair value of the asset or liability. The Group selects a valuation technique that is appropriate
in the circumstances and for which sufficient data is available to measure fair value. Given the strategy of the Group to
invest in privately held assets, the assets held by the Group are of such a nature where there is generally an absence
of an active market in the asset and the valuation of these assets can be volatile owing to their high-risk nature, lack of
profitability and level of negative cash flow. The Group selects several other valuation techniques which requires the
Group to make certain assumptions and judgements in assessing the fair value of these assets.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the
asset or liability, including assumptions about risks. When selecting a valuation technique, the Company gives priority
to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs
that are developed using market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable,
whereas inputs for which market data is not available and therefore are developed using the best information available
about such assumptions are considered unobservable.
The “fair value” of financial assets is assumed to be the price that would be received for the financial asset in an orderly
transaction between knowledgeable and willing but not anxious market participants acting at arm’s length given current
market conditions at the relevant measurement date. Fair value for unquoted or illiquid investments is often estimated
with reference to the potential realisation price for the investment or underlying business if it were to be realised or sold
in an orderly transaction at the measurement date, regardless of whether an exit in the near future is anticipated and
without reference to amounts received or paid in a distressed sale.
An assessment will be made at each measurement date as to the most appropriate valuation methodology, Each port-
folio company will be subject to individual assessment. As of 31 December 2023, The Group prepared several valuation
models and determined using publicly available information, noting Ensign’s peer group consists of listed companies.
The Group determined that the chosen valuation metric, Enterprise Value to Mineral Resources, is a widely accepted
Austral Gold Limited
81
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
standard in the sector for assessing the relative valuation of capital and the most appropriate valuation methodology for
its investment in Ensign Minerals Inc. (“Ensign”).
The following assumptions were used to determine the fair value of the Group’s investment in Ensign under the
Enterprise Value to Mineral Resources model:
• Group’s shareholding in Ensign-11.7%
• Discount factor of 40% of 1,640 thousand inferred resources advised by Ensign
• Illiquidity discount 20%
• EV to Mineral Resource factor 16.08
The sensitivity to +/- 10% variation in the discount factor to inferred resources (36%-44%) on the fair value of the Ensign
investment results in an impact of -US$87 thousand and +US$106 thousand respectively.
The sensitivity to +/- 10% variation in the illiquidity factor (18%-22%) on the fair value of the Ensign investment results
in an impact of -US$15 thousand and +US$35 thousand respectively.
The sensitivity to +/- 10% variation in the EV to Resources multiple (14.5x-17.7x) on the fair value of the Ensign invest-
ment results in an impact of +US$154 thousand and -US$135 thousand respectively
Fair value hierarchy
Refer to note 4 of these financial statements for details of the fair value hierarchy.
Transfers
During the year ended 31 December 2023 there were no transfers between the financial instrument levels of hierarchy.
However, as the Group lost significant influence in Ensign during the year, it remeasured its common shares of Ensign
at fair value at 31 December 2023.
Key assumptions for Options/Warrants
Strike price
Annual volatility
Interest rate
Expiration date
19. INVENTORIES
All figures are reported in thousands of US$
Materials and supplies
Ore stocks
Gold bullion and gold in process
Total inventories
Unico Silver
A$0.26
99.79%
3.96%
Ensign
C$1.50
55%
0.20%
1 March 2026
18 February 2024
As at 31 December
2023
6,558
1,736
1,405
9,699
2022
7,167
274
1,505
8,946
* Ore stock inventories require estimates and assumptions most notably in regard to grades, volumes, densities, future completion costs and ultimate sale price. Such
estimates and assumptions may change as new information becomes available which may impact upon the carrying value of inventory. The allowance for inventory
obsolescence forming part of the above balance is US$1,874k (31 December 2022:US$1,572k) resulting in an expense of US$272K included with other expenses (note 8)
and US$30k charged to cost of sales (note 6).
20. ASSETS FOR SALE
All figures are reported in thousands of US$
Transfers from property, plant and equipment
Transfers from exploration and evaluation expenditures
Assets held for sale
As at 31 December
2023
-
-
-
2022
951
7,343
8,294
On 25 November 2022, the Group entered into a Share Sale Agreement (“Agreement”) with E2 Metals Limited, whose
name was subsequently changed to Unico Silver Limited (“Unico”) to sell the common shares of its subsidiary, SCRN
Properties Ltd. (“SCRN”), whose major assets are exploration assets and property and equipment. As closing of the
transaction was subject to several conditions including Unico shareholder approval of the total shares and options to be
issued by Unico, the Group recorded the transaction as an asset held for sale at its carrying value on 31 December 2022.
All conditions for closing the transaction were met and the sale was completed on 1 March 2023.
A gain on the sale of US$1,964 thousand was recognised (note 7) based on the difference between the US$8,249 thou-
sand carrying value of the assets held for sale and the total consideration of US$10,213 thousand related to:
Austral Gold Limited
82
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
a. Total cash consideration of US$5,000 thousand, (US$2,500 thousand received at closing, while US$2,500 thousand is
due over three subsequent years on the anniversary of the Agreement date, of which US$750 thousand was received
in November 2023) which fair value was estimated at US$4,793 thousand at closing);
b. 49,751,970 shares of Unico valued at US$4,709 thousand (A$6,965 thousand) at closing that are being held in escrow
with 50% released on the first anniversary of the closing date and 50% released on the second anniversary of the
closing date, which was equal to (19.9%) Unico’s shareholding on a non-diluted basis on 1 March 2023 (31 December
2023-17%) and;
c. 15 million options of Unico. The value of the options using the Black-Scholes model at closing was US$0.712 million
using t key assumptions disclosed in note 18:
21. MINE PROPERTIES
All figures are reported in thousands of US$
Mine Properties – 31 December 2022
Cost
Accumulated amortisation
Carrying value — Mine Properties
Mine Properties – 31 December 2023
Cost
Accumulated amortisation
Carrying value — Mine Properties
All figures are reported in thousands of US$
Costs carried forward in respect of areas of interest
Carrying amount at the beginning of the year
Additions
Transfers from exploration and evaluation expenditure
Transfers to property, plant and equipment
Increase in provision for reclamation and rehabilitation
Amortisation
Carrying amount at end of the year
Guanaco/
Amancaya
Casposo
Total
65,862
(61,808)
4,054
68,516
(62,257)
6,259
9,795
(9,795)
-
9,795
(9,795)
-
75,657
(71,603)
4,054
78,311
(72,052)
6,259
For the year ended 31 December
2023
4,054
9
-
-
2,645
(449)
6,259
2022
1,217
30
3,585
(368)
598
(1,008)
4,054
Carrying value — Guanaco/Amancaya
The Guanaco and Amancaya mines have been determined by Management to be a single cash generating unit (“CGU”).
The fair value less cost of disposal, is used to assess the recoverable value of the CGU. The mine properties noted
above and the property, plant and equipment that is an intrinsic part of the mine and its structure (included in note 22)
are included in determining the carrying value of the CGU, which has been estimated at US$24,372 thousands after
considering working capital, for the purposes of assessing for impairment, while the carrying value of the Guanaco/
Amancaya mine properties, plant and equipment is US$51,623 thousands.
Management have assessed the recoverable value to be above book value of the Guanaco/Amancaya project and there-
fore no impairment charge has been applied to the assets for the current year. An impairment test was also performed
internally using the discounted cash flow model (DCF) as the primary valuation methodology. This FVLCOD discounted
cashflow model is a level 3 fair value hierarchy.
Main assumptions of the DCF model for impairment test purposes are as follows:
• Forecast Gold price (2024-2033): US$2,048/oz-1,815/oz (31 December 2022 (2023-2033): US$1,800/oz – US$1,720/oz)
• Forecast Silver price (2024-2033):US$24/oz-25/oz (31 December 2022 (2022-2033) US$20/oz– US$23.5/oz)
• The gold and silver assumptions represent management’s assessment of future prices are based on current commodity
prices and market expectations of future changes.
• Life of mine operations based on the current model are forecast to end in 2033 (31 December 2022: 2033).
• Discount Rate (pre-tax): 9.6% (31 December 2022:8.1%)
• Discount Rate (after-tax): 8.5% (31 December 2022: 7.5%)
• The discount rate was a measure estimated based on the Company’s current weighted average cost of capital.
• Production costs 2024 (US$1,364/oz) 2023 (US$1,645/oz)
• Production costs are management’s estimate of costs based on estimated production, historical data and anticipated
inflationary changes.
Austral Gold Limited
83
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Production is based on Proven and Probable reserves and resource estimates to 31 December 2023 that are based on
an independent technical report provided to the Group in 2022.
No reasonably possible change to the key assumptions would result in a recoverable value below the book value of any
of the projects. The sensitivities to the key assumptions would have the following results;
The sensitivity to +/- 10% variation in the gold price (US$1,692-US$2,068 /oz) on the recoverable value of the Guanaco/
Amancaya project results in an impact of +/- US$16,700 thousand.
The sensitivity to +/- 10% variation in the discount rate 7.7%-9.4%) recoverable value of the Guanaco/Amancaya project
results in an impact of +/- US$1,800 thousand.
The sensitivity to +/- 10% variation in production costs on the recoverable value of the Guanaco/Amancaya project results
in an impact of +/- US$10,600 thousand.
22. PROPERTY, PLANT AND EQUIPMENT
All figures are reported in thousands of US$
Property, plant and equipment owned
Right of use assets
Property, plant and equipment owned
Cost
Accumulated depreciation
Carrying amount at end of the year
All figures are reported in thousands of US$
Movements in carrying value
Carrying amount at beginning of the year
Additions
Transfers from mining properties
Transfers to assets held for sale
Depreciation
Disposals
Depreciation on disposals
Carrying amount at end of the year
As at 31 December
2023
42,581
7,035
49,616
175,490
(132,909)
42,581
2022
35,549
6,708
42,257
164,967
(129,418)
35,549
For the year ended 31 December
2023
2022
35,549
11,283
-
-
(4,184)
(760)
693
42,581
34,334
6,434
368
(952)
(4,590)
(1,687)
1,642
35,549
The majority of the property, plant and equipment is included in the Guanaco/Amancaya Cash Generating Unit (“CGU”). Prop-
erty, plant and equipment that does not form part of the Guanaco CGU are being carried at the lower of their book value and
recoverable amount. The Casposo property, plant and equipment is recorded at salvage value as it is currently not being used.
22.1 Reconciliation of carrying amount
All figures are reported in
thousands of US$
Underground Mine
Development
Plant
Mining
Equipment
Buildings
Heap
Land
Other
Total
Cost
Balance at 31
December 2021
Additions
Transfer from Mine
properties
Reallocation
Disposals
Transfers to asset
held for sale
Balance at 31
December 2022
Additions
Disposals
Balance at 31
December 2023
81,070
35,716
21,528
14,580
5,663
336
262
42
-
-
-
-
-
-
-
-
-
-
(1,687)
-
-
-
(196)
(304)
86,733
36,052
19,907
14,318
5,009
-
122
-
40
(760)
-
-
-
105
368
139
-
-
612
5,633
-
91,742
36,174
19,187
14,318
6,245
815
7,476
161,185
-
-
-
-
26
-
(139)
-
6,434
368
-
(1,687)
(815)
(18)
(1,333)
-
-
-
-
7,345
164,967
479
-
11,283
(760)
7,824
175,490
Austral Gold Limited
84
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in
thousands of US$
Underground
Mine
Development
Plant
Mining
Equipment
Buildings
Heap
Land
Other
Total
Accumulated
depreciation
Balance at 31
December 2021
Depreciation
Disposals
Transfers to asset
held for sale
Balance at 31
December 2022
Depreciation
Disposals
Balance at 31
December 2023
Carrying amounts
At 31 December
2022
At 31 December
2023
63,558
27,016
17,433
11,873
3,378
590
-
-
-
-
309
(1,637)
238
-
(190)
(174)
66,936
27,606
15,915
11,937
3,133
-
561
-
162
(693)
219
-
70,069
28,167
15,384
12,156
-
-
-
-
-
103
-
103
19,797
8,446
3,992
2,381
612
21,673
8,007
3,803
2,162
6,142
-
-
-
-
-
-
-
-
-
-
6,971
126,851
75
(5)
(17)
4,590
(1,642)
(381)
7,024
129,418
6
-
4,184
(693)
7,030
132,909
321
35,549
794
42,581
22.2 Right of use assets
All figures are reported
in thousands of US$
Office
Vehicles
Machinery and
equipment
Balance at 31
December 2021
Additions
Disposals
Less depreciation
Balance at 31
December 2022
Additions
Disposals
Less depreciation
Balance at 31
December 2023
22.3 Future lease payments*
All figures are reported in thousands of US$
Undiscounted
Less than a year
Greater than a year
Discounted
Less than a year
Greater than a year
*Expiration dates are disclosed in note 33 (d)
108
-
-
(99)
9
232
-
(83)
158
3,077
1,220
(5)
(1,748)
2,544
-
(160)
(1,033)
1,351
4,488
-
-
(333)
4,155
1,670
-
(299)
5,526
As at 31 December
2023
1,352
1,256
2,608
1,169
1,143
2,312
Total
7,673
1,220
(5)
(2,180)
6,708
1,902
(160)
(1,415)
7,035
2022
2,026
953
2,979
1,925
911
2,836
Austral Gold Limited
85
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
23. EXPLORATION AND EVALUATION EXPENDITURE
All figures are reported in thousands of US$
Costs carried forward in respect of areas of interest:
Carrying amount at the beginning of the year
Additions
Transfers to assets held for sale
Transfers to mine properties
Impairment for the year
Carrying amount at end of the year
For the year ended 31 December
2023
2022
27,261
4,614
-
-
(3,981)
27,894
32,322
6,793
(7,343)
(3,585)
(926)
27,261
The recovery of the carrying amount of the exploration and evaluation assets is dependent on the successful develop-
ment and commercial exploitation or sale of the areas of interest. This balance mainly relates to expenditures at the
Guanaco, and Casposo exploration projects and the fair value of the properties acquired from Revelo. Additions for the
year ended 31 December 2023 and 2022 relate mainly to exploration on the Jaguelito project, located in the Indio belt in
Argentina, the Casposo-Manantiales project, located in San Juan, Argentina and the Guanaco projects located in Chile.
During 2023, the Group impaired the Morro Blanco project for US$1,850 thousand as the Group did not expect to meet
the commitments under the option agreement with Pampa Metals that expired on 27 July 2023. In addition, it impaired
the following properties:
a. Reprado project acquired from Revelo Resources for US$258 thousand as it abandoned the property.
b. Between 20-54% of the Las Pampas, Victoria Sur and Loro properties acquired from Revelo Resources and the San
Guillermo property for US$1,643 thousand as the Group relinquished a selected number of hectares based on histori-
cal geological information and the Group’s internal estimate of the potential for further discoveries,
c. Expenditures of US$230 thousand on phase II of the Sierra Blanca project as US$400 thousand was due to be incurred
by 31, August 2023, but was not spent.
During 2022, the Group impaired the Orca property acquired from Revelo for US$156 thousand as it abandoned the
property and impaired US$769 thousand related to Cerro Blanco after advising Pampa that it was withdrawing from
the property.
Impairment for the year ended 31 December 2023 and 2022 relate to impairment on the exploration projects with either
no expected value or partial value.
Jaguelito Option Agreement
During February 2022, the Group signed a binding offer letter with Mexplort Perforaciones Mineras S.A. (”Mexplort”)
where the parties agreed to enter into a Joint Venture Agreement to identify and develop new precious metal projects
located in the Indio belt in the Province of San Juan, Argentina and Mexplort is to grant Austral Gold Argentina S.A., a
subsidiary company in Argentina, an earn-in option whereby it may acquire a 50% of the mining rights the Jaguelito
project (“50% interest”) held by Mexplort through a concession granted by the Instituto Provincial de Exploraciones y
Explotaciones Mineras de la Provincia de San Juan (IPEEM) in October 2011 which was approved on 10 August 2022.
During the year ended 31 December 2023, a company owned equally by Group and Mexplort was incorporated. The
consideration to acquire the 50% interest is as follows:
i. US$2,000 thousand in exploration expenditures on Jaguelito within two years from the approval of the Option by
IPEEM (the “First Stage”), including drilling a minimum of 5,000 meters. As of 31 December 2023, US$4,943 thousand
of exploration expenses was incurred and 4,331 meters has been drilled.
ii. US$2,000 thousand in exploration expenditures on Jaguelito within two years after completing the First Stage (the
“Second Stage”), and
iii. US$3,000 thousand payment to Mexplort if the Board of the JV Company approves the construction of the project
based on a bankable feasibility study (“BFS”).
The Group must comply with the conditions in (i)-(iii) above to acquire a 50% interest in the Jaguelito project.
Austral Gold Limited
86
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
At the time of acquisition, the Jaguelito project had no probable and proven resources. The project was not in production
and there was no mine plan to place them into production. For these reasons, the acquisition was accounted for as an
acquisition of assets and liabilities and not a business combination as defined under AASB3 “Business combinations”
and note 41.
Sierra Blanca Agreement
The significant terms of the transaction to acquire the Sierra Blanca signed with New Dimension Guernsey Ltd. in October
2020 include the payment of US$100 thousand cash (paid) on signing and work commitments of US$700 thousand.
The transaction is being accounted for as an acquisition of an asset and the future work commitments are to be paid
before the following dates:
31 August 2021: $100 thousand (paid) (Year 1)
31 August 2022: $200 thousand (paid) (Year 2)
31 August 2023: $400 thousand (Year 3)
As the work commitments in Year 1 were incurred, the Group acquired a 51% interest in Sierra Blanca S.A., which
resulted in Exploration and Evaluation rights of US$392 thousand, the non-controlling interest at the time of acquisition,
for total cash consideration of US$200 thousand. Although the work commitments in Year 2 were incurred, as the work
commitments in Year 3 were not incurred, the Group did not acquire an additional interest.
At the time of acquisition, the Sierra Blanca project had no probable and proven resources. The project was not in produc-
tion and there was no mine plan to place them into production. For these reasons, the acquisition was accounted for
as an acquisition of assets and liabilities and not a business combination as defined under AASB3 “Business combina-
tions” and note 41.
Colossus Resource Agreement
On 4 April 2023, the Group entered executed a letter of intent to grant Colossus Resources Corp. (“Colossus”) an option to
purchase the Group’s Chilean Calvario and Mirador copper projects. Colossus paid the Group US$100 thousand, which
was recorded as other income (note 7), of which US$75 thousand was agreed to be used to pay the 2023 maintenance
fees for the projects. Subsequently, the parties executed an agreement on 15 November 2023. Consideration comprised
mainly of (i) a US$2,500 thousand work commitment over a two-year period, (ii) 19.99% shareholding in Colossus (non-
diluted basis), (iii) one million Colossus warrants at an exercise price of C$0.50 and anti-dilution rights up to Colossus
raising US$3,800 thousand. Additional payment of two million Colossus common shares if Colossus prepares a prefea-
sibility study. Colossus is to complete an equity financing for proceeds of not less than US$1,500 thousand within 90
days after the date of the Agreement and any required regulatory approval. Required regulatory approval by the TSXV
has not been received as of the date of the annual report.
24. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
The Group’s interests in equity-accounted investees comprise an interest in a Rawhide Acquisition Holding LLC.
(“Rawhide”) that owns Rawhide Mining LLC, a gold and silver operating mine in Nevada, USA and which carry value is
US$ nil )31 December 2022: US$ nil) and an interest in Ensign Gold Limited (“Ensign”) that is engaged in the acquisition,
exploration, and development of precious metal mineral properties primarily in the state of Utah, United States through its
subsidiary, Ensign Gold (US) Corp. Subsequent to acquiring the interest, Ensign changed its name to Ensign Minerals Inc.
All figures are reported in thousands of US$
Carrying amount of interest in associates
Carrying amount of interest in Ensign
Group’s total carrying amount of interest in associates
24.1 Investment in Rawhide
As at 31 December
2023
2022
-
-
60
60
During the year ended 31 December 2023, the Group provided bridge funding of US$555 thousand to the Rawhide
Mining LLC in exchange for takeover options with the other unitholders to acquire an equity position of approximately
99.98% of the Mine, subject to due diligence. Total expenses related to the takeover option, which include due diligence
expenses and the bridge funding, were US$617 thousand. As the Group did not exercise the takeover options, the Group
recognised these expenses in the consolidated statement of profit or loss and other comprehensive income as Other
expenses (note 8). On 20 December 2023 (the “ Petition Date “) Rawhide Mining LLC filed a voluntary petition for relief
under Chapter 11 of the United States Bankruptcy Code.
During the year ended 31 December 2022, the Group advanced Rawhide US$124 thousand. As the Group did not expect
to recover this amount, the Group recognised this amount in share of loss of associates in the consolidated statement
of profit or loss and other comprehensive income during that period.
Austral Gold Limited
87
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
24.2 Investment in Ensign
The Group has reviewed the facts and circumstances that affect the Group’s assessment of significant influence over
Ensign, including that one of the Group’s directors is on Ensign’s board as at 31 December 2023 (31 December 2022-two
of the Group’s directors were on Ensign’s board), and believes that as at 31 December 2023, it no longer has significant
influence. As a result, the Group has derecognised its equity accounted investment in Ensign and recognised an invest-
ment in Ensign as a financial asset, measured at fair value. This has resulted in a gain of $1,012 thousand which has
been recognised as an item in the Group’s profit or loss (note 8). Any subsequent gains or losses on the fair value of the
investment will be recognised in its Profit or Loss statement.
At 31 December 2023, the Group had only one member of its board on Ensign’s board (31 December 2022: 2 board
members) and it’s percentage ownership interest was 11.7% (31 December 2022: 11.91%).
25. TRADE AND OTHER PAYABLES
All figures are reported in thousands of US$
Current
Trade payables
Trade payables-supply chain financing arrangement (note 25.1)
Accrued expenses
Royalty payable
Director fees
Restricted cash received on private placement of convertible notes (note 25.2)
Other
As at 31 December
2023
15,179
835
5,312
578
531
591
95
2022
8,655
876
4,668
376
341
-
774
Total current trade and other payables
23,121
15,690
Non-Current
Other payables
Total non-current trade and other payables
25.1 Supply chain financing arrangements
All figures are reported in thousands of US$
Carrying amount of financial liabilities
Presented in trade and other payables
Of which suppliers have received payment from finance providers
Range of payment due dates
Liabilities that are part of the arrangements
Comparable trade payables that are not part of the arrangements
3
3
As at 31 December
2023
835
795
1,013
1,013
2022
876
854
180 days after
invoice date
180 days after
invoice date
30-60 days
30-60 days
The Group participates in a supply chain financing arrangement (SCF) under which its supplier may elect to receive early
payment of their invoice from a financial institution by factoring their receivable from the Group. Under the arrangement, a
financial institution agrees to pay amounts to a participating supplier in respect of invoices owed by the Group and receives
settlement from the Group at a later date. The principal purpose of this arrangement is to facilitate efficient payment
processing and enable the willing suppliers to sell their receivables due from the Group to a bank before their due date.
The Group has not derecognised the original liabilities to which the arrangement applies because neither a legal release
was obtained, nor the original liability was substantially modified on entering into the arrangement. From the Group’s
perspective, the arrangement extends payment terms to six months. The Group incurs interest ranging from approxi-
mately 16%-20% per annum to the financial institutions on the amounts due to suppliers. The Group therefore discloses
the amounts factored by suppliers within trade payables because the nature and function of the financial liability remain
similar to those of other trade payables but discloses disaggregated amounts in the notes. All payables under SCF are
classified as current as at 31 December 2023.
The payments to the financial institutions are included within operating cash flows because they continue to be part of
the normal operating cycle of the Group and their principal nature remains operating- i.e. payments for services required
to earn revenue. The payments to a supplier by the financial institution are considered non-cash transactions and as at
31 December 2023 amount to US$795 thousand (31 December 2022-US$854 thousand) plus accrued interest of US$40
thousand (31 December 2022-US$22 thousand).
Austral Gold Limited
88
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
25.2 Cash received on private placement of convertible notes
On 10 October 2023, the Group entered into an Agreement to issue approximately 1,548 thousand non-transferable
unsecured convertible notes, each with a face value of A$1, to an accredited and sophisticated investor. The number
of notes will be determined by converting the gross proceeds into equivalent Australian dollars. The notes are to bear
interest at a rate of 9% per annum and mature on the second anniversary of the date they are issued. Each note will
entitle the holder to convert the notes into ordinary shares of the Company at the holder’s option at a conversion price of
A$0.059 per share during the first year and A$0.118 during the second year. The private placement is expected to yield
gross proceeds of US$1,000 thousand (approximately A$1,548 thousand). At 31 December 2023, the Group had received
US$591 thousand from the investor, and as the aggregate of US$1,000 thousand stated in the agreement had not been
received, the Group has not closed the financing, and classified the cash received as restricted cash. The closing of the
Agreement is also subject to acceptance by the TSX Venture Stock Exchange.
On 14 February 2024, a Deed of Variation of the Convertible Note Agreement was entered into which allowed for the
closing of the convertible notes in two tranches, with the first tranche totaling US$591 thousand.
On 15 February 2024, the first tranche of the Agreement was completed and the US$591 thousand became unrestricted cash.
The investor did not subscribe for the second tranche, which was due by 15, March 2024.
26. EMPLOYEE ENTITLEMENTS
All figures are reported in thousands of US$
Current
Salaries, social security and bonuses
Employee entitlements
Total current employee entitlements
As at 31 December
2023
1,967
1,023
2,990
2022
3,009
1,044
4,053
The current provision for employee entitlements includes all unconditional entitlements in accordance with the applicable
legislation. The entire amount is presented as current, since the Group does not have an unconditional right to defer
payment. The entire balance of employee benefits is expected to be settled within the next 12 months.
Total employee salary, benefits and bonuses of the Group in the profit and loss statement was US$13,286 thousand (2022-
US$14,176 thousand), including US$9,707 thousand (2022-US$9,307 thousand) in cost of sales and US$3,579 thousand
(2022-US$4,869 thousand) in administration.
Non-current
Employee entitlements
Total non-current employee entitlements
18
18
35
35
Retirement benefits
Retirement benefits are to be paid upon the death of workers and for disability and retirement.
The methodology followed to determine the provision for all employees adhering to the agreements has considered turn-
over rates and the RV-2014 mortality table established by the Superintendency of Securities and Insurance to calculate
the reserves of life insurance in Chile according to the valuation method called Accumulated Benefit Valuation Method or
Accrued Benefit Cost. This methodology is established in AASB 119 Employee benefits on Retirement Benefits Costs. The
parameters of turnover rates, rates of increase of remunerations and discount rate have been determined by the Group.
27. PROVISIONS
All figures are reported in thousands of US$
Mine closure
Movement in non-current provisions
Opening balance
Increase of provision for reclamation and rehabilitation
Exchange difference
Present value adjustment
Closing balance
As at 31 December
2023
13,695
10,924
2,645
161
(35)
13,695
2022
10,924
9,232
598
674
420
10,924
Austral Gold Limited
89
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Mine closure provision
Provision for rehabilitation work has been recognised in relation to estimated future expenditures including rehabilitating
mine sites, dismantling operating facilities and restoring affected areas. These future cost estimates are discounted to
their present value. The calculation of this provision requires assumptions such as application of environmental legisla-
tion, mine closure dates, available technologies and engineering cost estimates.
During the year ended 31 December 2023, the Company adjusted the Reclamation and rehabilitation/Mine-Closure
Plan (MCP) for the Guanaco-Amancaya mine complex in compliance with local regulations in Chile. The increase in the
estimated provision for reclamation and rehabilitation was primarily driven by increases in inflation, labor costs, and the
inclusion of the Heap Reprocessing Project, which extended the life of the mine complex to 2033 from 2026.
The MCP encompasses the entire mine complex, and it foresees the initiation of closure activities in 2033, following the
conclusion of production from the Heap Reprocessing Project. The MCP is expected to receive approval by “Servicio
Nacional de Geología y Minería” (SERNAGEOMIN) during the first half of 2024. If the SERNAGEOMIN requires changes
to the MCP, the reclamation and rehabilitation provision would change.
The carrying amount of the mine closure asset of US$3,587 thousand is included in the carrying value of mine properties
disclosed in note 21.
As at 31 December 2023, the total restoration provision amounts to US$10,103 thousand (31 December 2022–US$7,157
thousand) for Guanaco/ Amancaya mine. The present value of the restoration provision was determined based on the
following assumptions:
Undiscounted rehabilitation costs:
• US$12,860 thousand (31 December 2022– US$ 7,647 thousand);
• Discount period: 10 years (Discount period based on expected timing of restoration work).
• Discount rate: 2.44% (2022- 1.7%)
At 31 December 2023, the total restoration provision amounts to US$3,592 thousand (31 December 2022: US$3,767) for
the Casposo mine. The present value of the restoration provision was determined based on the following assumptions:
• Number of years, 5 (31 December 2022-2 years) (increase based on Group’s expectation of when reclamation and
rehabilitation work is expected to be performed).
• Undiscounted reclamation and rehabilitation costs: US$3,912 thousand (31 December 2022-US$3,912 thousand);
• Discount rate: 1.7% (2022–2.2%)
28. LOANS AND BORROWINGS
All figures are reported in thousands of US$
Current
Loan facilities
Related party loans
Total current loans and borrowings
Non-current
Loan facilities
Total non-current loans and borrowings
As at 31 December
2023
8,823
4,717
13,540
2,568
2,568
2022
7,382
-
7,382
1,264
1,264
Loan Facilities
At 31 December 2023, the current and non-current Loan facilities are to be repaid over 9 months and 34 months respec-
tively at an annual average interest rate of 9.6% (2022–6.9%).
Related party loans
During the year ended 31 December 2023, the Group received unsecured related party loans totaling US$4,555,000
(including accrued interest, the total amount owed at 31 December 2023 is US$4,716,790). Further information about
these loans is described in note 37.
Austral Gold Limited
90
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Reconciliation of movements of liabilities to cash flows arising from financing activities
All figures are reported in thousands of US$
Balance at 1 January 2022
Change from financing cash flows
Proceeds from loans and borrowings
Repayments
Other changes
New leases
Interest expense
Interest paid
Balance at 31 December 2022
Balance at 1 January 2023
Change from financing cash flows
Proceeds from loans and borrowings
Repayments
Other changes
New leases
Foreign exchange
Interest expense
Interest paid
Balance at 31 December 2023
Loans
5,753
11,735
(8,842)
-
330
(330)
8,646
8,646
17,955
(10,777)
-
-
1,004
(720)
16,108
Leasing
4,763
-
(3,133)
1,220
194
(208)
2,836
2,836
-
(2,252)
1,742
(14)
186
(186)
2,312
All figures are reported in US$
31 December 2023
Lender
Santander Bank(3)
Santander Bank(3)
Inversiones Financieras del Sur S.A.(2)(3)
Santander Bank(3)
Santander Bank
Face value
Carrying value
1,000,000
1,000,000
555,000
500,000
500,000
1,039,119
1,016,903
562,077
515,119
515,602
Inversiones Financieras del Sur S.A.(2)
2,000,000
2,059,750
Eduardo Elsztain(2)
Saul Zang(2)
Eduardo Elsztain(2)
Saul Zang(2)
850,000
150,000
850,000
150,000
870,188
153,638
910,468
160,671
Banco de Crédito e Inversiones SA (BCI)
1,000,000
1,061,686
Banco de Crédito e Inversiones SA (BCI
Santander Bank
Banco de Crédito e Inversiones SA (BCI)
Banco de Crédito e Inversiones SA (BCI)
Santander Bank
Santander Bank
Banco de Crédito e Inversiones SA (BCI)
500,000
400,000
500,000
500,000
3,500,000
3,500,000
1,000,000
531,546
418,225
515,697
505,830
1,263,889
3,062,500
944,444
Total
18,455,000
16,107,352
Interest rate (%)
Maturity date (1)
8.97
9.22
9.00
8.85
9.52
9.00
9.00
9.00
9.00
9.00
11.94
13.93
12.62
12.15
12.35
4.27
8.50
12.35
23 January 2024
24 January 2024
10 February 2024
26 February 2024
01 March 2024
12 March 2024
12 March 2024
12 March 2024
31 March 2024
31 March 2024
17 June 2024
17 July 2024
19 August 2024
23 September 2024
23 September 2024
25 January 2025
17 April 2026
23 October 2026
(1) The Maturity date refers to the date when the loan is to be completely repaid. Loans and borrowings have been classified based on the actual repayment calendar as
disclosed in note 33.
(2) Related party loans
(3) During January and February 2024, a total of US$2,500 thousand in pre-export facilities were renewed with Santander Bank for an additional 6 months at an average
interest rate of 9.36% per annum as three 6-month pre-export facilities were renewed as follows: US$1,000 thousand at 9.12%, US$500 thousand at 9.32%, and US$500
thousand at 9.75% and US$500 thousand at 9.60%. In addition, the loan maturity dates of the loans held by Inversiones Financieras del Sur S.A., Eduardo Elsztain and
Saul Zang were extended to 30 September 2024.
Austral Gold Limited
91
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
29. ISSUED CAPITAL
Fully paid ordinary shares (in thousands of US$)
Number of ordinary shares
Weighted average number of ordinary shares
Movements in ordinary share capital
As at 31 December
2023
109,114
612,311,353
612,311,353
Number of ordinary
shares
2022
109,114
612,311,353
612,311,353
US$000’s
Balance at 31 December 2023 and 2022
612,311,353
109,114
Ordinary shares participate in dividends and the proceeds on winding up of the Parent Entity in proportion to the number
of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands. The ordinary shares do not have any par value.
30. ACCUMULATED LOSSES LO
All figures are reported in thousands of US$
Accumulated losses at beginning of year
Net (loss) for the year
Accumulated losses at end of year
31. RESERVES
All figures are reported in thousands of US$
Foreign currency translation reserve
Balance at beginning of year
Foreign exchange movements from translation of financial instruments to US dollars
Balance end of year
Business combination reserve
Balance at beginning of year
Balance end of year
Profit appropriation reserve
Balance at beginning of year
Dividend paid
Balance end of year
Total reserves
For the year ended 31 December
2023
(59,320)
(7,229)
(66,549)
2022
(51,063)
(8,257)
(59,320)
For the year ended 31 December
2023
234
1
235
(1,406)
(1,406)
14
-
14
2022
251
(17)
234
(1,406)
(1,406)
14
-
14
(1,157)
(1,158)
Foreign Currency Translation Reserve
Exchange differences arising on translation of the non-US$ denominated non-monetary balances of Group Companies
are recognised in the foreign currency translation reserve. The reserve is recognised in profit or loss when the net invest-
ment is disposed.
Business Combination Reserve
Created on the acquisition of non-controlling interests. The reserve is reversed when the entity acquired is sold or wound up.
Profit appropriation Reserve
Transfers up to the net income earned during the year may be transferred from accumulated losses and paid as a dividend.
32. NON-CONTROLLING INTEREST
All figures are reported in thousands of US$
Non-controlling interest in subsidiaries comprise
Non-controlling interest during the year
Balance end of the year
For the year ended 31 December
2023
2022
(14)
165
(9)
179
During November 2021, the Group completed the work commitment to acquire 51% of Sierra Blanca S.A as disclosed in note 23.
Austral Gold Limited
92
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
33. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group’s principal financial instruments include items such as borrowings, receivables, listed equity securities, cash
and short- term deposits. These activities expose the Group to a variety of financial risks: market risk (interest rate risk
and foreign currency risk), credit risk, price risk and liquidity risk.
The Group recognises the importance of risk management and has adopted a Risk Management and Internal Compliance
and Control policy which describes the role and accountabilities of management and of the Board. The Directors manage
the different types of risks to which the Group is exposed by considering risk and monitoring levels of exposure to the
main financial risks by being aware of market forecasts for interest rates, foreign exchange rates, commodity and market
prices. The Group’s exposure to credit risk and liquidity risk is monitored through general business budgets and forecasts.
The Group holds the following financial instruments:
All figures are reported in thousands of US$
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Financial leases
a. Market Risk
As at 31 December
2023
1,039
3,483
3,958
23,124
16,108
2,312
2022
926
3,326
641
16,703
8,646
2,836
Foreign Currency Risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign currency exchange rate fluctuations.
Foreign exchange rate risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the functional currency of the Group. The risk is measured using cash
flow forecasting. Foreign currency risk is minimal as most of the transactions are settled in US$.
At 31 December 2023, the Group was exposed to foreign exchange risk through the following financial assets and
liabilities denominated in currencies other than the Group’s functional currency (thousands of US$).
The following significant exchange rates have been applied.
US$
ARS
CLP
A$
C$
Average rate
Year-end spot rate
2023
295.19
839.69
1.51
1.35
2022
139.84
850.28
1.44
1.25
2023
806.95
877.12
1.47
1.32
2022
177.06
855.86
1.48
1.35
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Argentine peso, Chilean peso, Australian dollar, Canadian dollar
and US dollar against all other currencies at 31 December 2023 would have affected the measurement of financial
instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This
analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast
sales and purchases.
Austral Gold Limited
93
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Effect in thousands of US$
31 December 2023
Profit or loss
Equity, net of tax
Strengthening
Weakening
Strengthening
Weakening
ARS (70% movement)
CLP (10% movement)
A$ (5% movement)
C$ (2% movement)
31 December 2022
ARS (70% movement)
CLP (10% movement)
A$ (5% movement)
C$ (1% movement)
(198)
(1,952)
289
5
198
1,952
(289)
(5)
(198)
(1,952)
289
5
198
1,952
(289)
(5)
Strengthening
Weakening
Strengthening
Weakening
688
(585)
-
9
(688)
585
-
(9)
688
(585)
-
9
(688)
585
-
(9)
All figures are reported in thousands of US$
31 December 2023
Argentinian Peso
(ARS)
Chilean Peso
(CLP)
Australian Dollar
(A$)
Canadian Dollar
(C$)
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Financial leases
29
28
23
278
-
14
733
-
19,482
136
9
20
5,774
85
-
42
-
288
28
-
All figures are reported in thousands of US$
31 December 2022
Argentinian Peso
(ARS)
Chilean Peso
(CLP)
Australian Dollar
(A$)
Canadian Dollar
(C$)
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Financial leases
75
1,599
23
709
-
5
17
1,128
-
6,799
-
-
10
20
-
30
-
-
24
9
590
40
-
-
ii. Price Risk
The Group’s revenues are exposed to fluctuations in the price of gold, silver and other prices. Gold and silver produced
is sold at prevailing market prices in US$.
The Group has resolved that for the present time production should remain unhedged. The Group considers exposure
to commodity price fluctuations within reasonable boundaries to be an integral part of the business.
The graph below shows the long term upward trend of gold and silver prices.
2500
2000
1500
1000
500
0
2004
2005
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Gold Price (US$/oz)
Silver Price (US$/oz)
60
50
40
30
20
10
0
Austral Gold Limited
94
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
iii. Interest Rate Risk
The Group’s main interest rate risk arises from recent higher interest rates on new borrowings and finance leases. The
Group’s borrowings and finance leases are at fixed rates and therefore do not carry any variable interest rate risk. Changes
in interest rates are not expected to have a significant impact on the Group.
a. Financial Market Risk
The financial market risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because
of changes in market prices, which occurs due to the Group’s investment in listed securities where share prices can fluc-
tuate over time. This risk, however, is not deemed to be significant as these investments are held for long term strategic
purposes and therefore movement in the market prices impact the short-term profit or loss or cash flows of the Group.
The group holds listed government bonds, and listed equity securities (note 4). These are classified as level 1 within the
fair value hierarchy as per AASB 7 “Financial Instruments”.
Sensitivity analysis-Equity price risk
All of the Group’s listed equity investments are listed on either the Australian Stock Exchange (“ASX”) or the Toronto
Venture Exchange (“TSXV”) or the Canadian Stock Exchange (“CSE”). For such investments, an increase in the value
of the investments at the reporting date on profit or loss would have resulted in an increase of US$243 thousand before
tax and US$206 thousand after tax (2022: US$59 thousand before tax and US$42 thousand after tax). An equal change
in the opposite direction would have decreased profit or loss by US$243 thousand (2022: US$59 thousand after tax).
b. Credit Risk
The maximum exposure to credit risk at the reporting date to recognised financial assets, including receivables from
government authorities, is the carrying amount, net of any allowance for doubtful debts, as disclosed in the statement
of financial position and notes to the financial statements.
The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the
Group’s policy to securitise its other receivables.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts
is not significant. There is no significant credit risk of concentration as although the Group typically sells to one refinery,
it has the flexibility to sell through alternative channels such as financial institutions and merchant banks. In addition,
credit risk is minimised as generally funds are collected within two days of the date of shipment.
c. Liquidity Risk
The liquidity of the Group is managed to ensure sufficient funds are available to meet financial commitments in a timely and cost
effective manner.
Management continuously reviews the Group’s liquidity position through cash flow projections based upon the current life
of mine plan to determine the forecast liquidity position and maintain appropriate liquidity levels.
d. Maturities of financial liabilities
The tables below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
All figures reported in US$
31 December 2023
Financial liabilities
Trade and other payables
Borrowings
Leasing
Total 31 December 2023 liabilities
31 December 2022
Financial liabilities
Trade and other payables
Borrowings
Leasing
Total 31 December 2022 liabilities
6 months
6-12 months
1-5 years
> 5 years
Total
Consolidated
23,121
10,617
699
34,437
15,690
4,367
1,405
21,462
-
3,576
653
4,229
-
3,226
621
3,847
3
2,748
1,256
4,007
1,013
1,296
953
3,262
-
-
-
-
-
-
-
-
23,124
16,941
2,608
42,673
16,703
8,889
2,979
28,571
Austral Gold Limited
95
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
34. COMMITMENTS
All figures are reported in thousands of US$
Operating leases not recognised as liabilities
Exploration commitment at the reporting date and recognised as liabilities
Capital expenditure not recognised as liabilities
As at 31 December
2023
-
-
383
2022
-
1,003
616
To maintain legal rights to its properties, the Group pays fees for mining concessions and exploration. It anticipates that
it will need to pay approximately US$383 thousand during the next year to maintain legal rights to all of its properties.
35. SUBSIDIARIES
Subsidiaries
Country of Incorporation
% owned as at 31 December
2023
2022
Guanaco Mining Company Limited
British Virgin Islands
100.000
100.000
Chile
Chile
Chile
Chile
Chile
Chile
Argentina
Argentina
United States
Canada
Canada
Canada
Canada
Canada
Argentina
Argentina
Guanaco Compañía Minera SpA
Minera Mena Chile Ltda
SCM Pampa Buenos Aires Ltda
Minera Celeste Chile Ltda
Minera Serena Chile Ltda
SMC Montezuma Ltda
Austral Gold Argentina S.A.
Sierra Blanca S.A.
Austral Gold North America Corp.
Austral Gold Canada Limited
SCRN Properties Ltd.
Casposo Argentina Mining Limited
Revelo Resources Corp.
1388631 BC Ltd
Casposo Energias Renovables S.A.U.
Minera Cuyo S.A.
36. PARENT ENTITY INFORMATION
All figures are reported in thousands of US$
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Reserves
Total shareholders’ equity
(Loss) for the year
Foreign exchange movements from translation of financial statements to US$
Total comprehensive (loss) for the year
Details of any guarantees entered into by the parent entity in relation to the debts of
its subsidiaries
Details of any contingent liabilities of the parent entity
Details of any contractual commitments by the parent for the acquisition of property,
plant or equipment
99.998
99.990
99.990
99.990
99.990
99.990
99.970
51.000
100.000
100.000
-
100.000
100.000
-
-
50.000
As at 31 December
2023
4,586
59,970
18,832
18,832
41,138
109,114
(67,571)
(405)
41,138
(18,608)
1
(18,607)
None
None
None
99.998
99.990
99.990
99.990
99.990
99.990
99.970
51.000
100.000
100.000
100.000
100.000
100.000
100.000
100.000
-
2022
334
73,260
13,515
13,515
59,745
109,114
(48,963)
(406)
59,745
(1,293)
(3)
(1,296)
None
None
None
Austral Gold Limited
96
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
37. RELATED PARTY TRANSACTIONS
37.1 KMP holdings of shares and share options at 31 December 2023
• Mr. Eduardo Elsztain holds 461,294,560 shares directly and indirectly in Austral Gold Limited. (31 December 2022—
461,294,560 shares)
• Mr. Saul Zang holds 1,640,763 shares directly in Austral Gold Limited. (31 December 2022— 1,640,763 shares)
• Mr. Pablo Vergara del Carril holds 68,119 shares directly in Austral Gold Limited. (31 December 2022—68,119)
• Mr. E. Elsztain and Mr. S. Zang are Directors of IFISA which holds 380,234,614 shares (31 December 2022—380,234,614)
• Mr. P. Vergara del Carril, Mr. E. Elsztain and Mr. S Zang are Directors of Guanaco Capital Holding Corp which holds
38,859,957 shares. (31 December 2022—38,859,957)
• Mr. Stabro Kasaneva holds 7,881,230 shares indirectly in Austral Gold Limited. (31 December 2022—7,881,230)
• Mr. Rodrigo Ramirez holds 279,514 shares directly in Austral Gold Limited. (31 December 2022—279,514)
• Mr. Ben Jarvis holds 600,000 shares directly in Austral Gold Limited (31 December 2022—250,000)
• Mr. Jose Bordogna holds 126,495 shares directly in Austral Gold Limited. (31 December 2022—126,495)
37.2 Directors and Key Management Personnel Remuneration
The aggregate compensation made to Directors and other members of Key Management Personnel of the Group is set
out below.
All figures are reported in US$
Short-term benefits
Other long term benefits
Termination benefits
Total
For the year ended 31 December
2023
1,516,867
27,382
71,762
2022
2,422,596
21,484
-
1,616,011
2,444,080
37.3 Other transactions with related parties
Zang, Bergel & Viñes Abogados (“ZBV”) is a related party since one non-executive Director, Pablo Vergara del Carril has
significant influence over this law firm based in Buenos Aires, Argentina. Fees charged and expenses reimbursed by the
Group for the year ended 31 December 2023 amounted to US$80,922 (2022: US$79,219). As at 31 December 2023, the
Group owed ZBV US$5,990 (31 December 2022-US$7,967).
IRSA Inversiones y Representaciones S.A. and Consultores Asset Management S.A. are related parties as they are
controlled by Non-executive Director and Chair, Eduardo Elsztain. During the year ended 31 December 2023 a total
of US$61,975 was charged to and reimbursed by the Company (2022: US$72,303) in regard to IT services support,
HR services, software licenses building/office expenses and other fees at 31 December 2023, the Group owed these
companies US$$7,285 (31 December 2022-US$12,755) During 2023, the Group entered into loans with Inversiones
Financieras del Sur S.A. it’s directors, Eduardo Elsztain and Saul Zang. Terms of the loans are described in note 28 and
the respective amounts owed and interest expense are disclosed in the following table:
All figures are reported in US$
Lender
Inversiones Financieras del Sur S.A.
Eduardo Elsztain
Saul Zang
* Includes US$25,525 of interest paid during the year
37.4 Ultimate parent entity
For the year ended 31 December 2023
Balance due
Interest expense
2,621,827
1,780,656
314,309
88,797*
80,656
14,309
The Parent Entity is controlled by IFISA with a 62.1% non-diluted and diluted interest in Austral Gold Limited and is
incorporated in Uruguay. As IFISA is a private company, they do not produce consolidated financial statements avail-
able for public use.
The ultimate beneficial owner of IFISA is Eduardo Elsztain.
37.5 Board positions with Companies that we hold equity interests
Mr. Kasaneva, CEO and Director of Austral Gold Limited is a Director of Ensign Minerals Inc. (note 18) and Mr. Bordogna,
CFO of Austral Gold Limited is a director of Unico Silver Limited (note 18).
Austral Gold Limited
97
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
38. UNRECOGNISED DEFERRED TAX ASSETS
In certain entities of the Group, deferred tax assets have not been recognised in respect of the following items, because
it is not probable that future taxable profit will be available against which the Group can use the benefits.
The ability of the Group to utilise Australian, Argentina, US or Canadian tax losses will depend on the applicability and
compliance with the respective country’s tax laws regarding continuity of ownership or same or similar business tests.
All figures are reported in thousands
of US$
Gross amount
Gross amount
As at 31 December
2023
Expiry
2022
Expiry
Australia
Tax losses
Capital losses
13,658
2,208
no-expiry
no-expiry
13,505
2,187
no-expiry
no-expiry
All figures are reported in thousands
of US$
Canada
Tax losses
Capital losses
Gross amount
Gross amount
As at 31 December
2023
4,861
311
Expiry
2037-2044
no-expiry
2022
5,123
-
Expiry
2036-2043
no-expiry
All figures are reported in thousands
of US$
Gross amount
Gross amount
As at 31 December
2023
Expiry
2022
Expiry
USA
Tax losses
All figures are reported in thousands
of US$
Argentina
Tax losses
Deferred tax assets
All figures are reported in thousands
of US$
Total
Tax losses
Capital losses
Deferred tax assets
5,624
no-expiry
5,405
no-expiry
Gross amount
Gross amount
As at 31 December
2023
1,495
3,700
Expiry
2024-2028
no-expiry
2022
2,524
3,676
Expiry
2023-2027
no-expiry
Gross amount
Gross amount
As at 31 December
2023
25,638
2,208
3,700
2022
26,557
2,187
3,676
Austral Gold Limited
98
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
39. CAPITAL MANAGEMENT
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. Management monitors the return on capital, as well as the level of dividends
to ordinary shareholders.
The Group maintains strong relationships with its lenders, including banks which provide the Group with borrowings and
lines of credit, and the gold refinery that the Group has an agreement with, and other customers of the Group that may
fund the purchase of gold and silver in advance of delivery.
The Group monitors capital using a ratio of ‘net debt’ to equity’. Net debt is calculated as total liabilities (as shown in the
statement of financial position) less cash and cash equivalents.
All figures are reported in thousands of US$
Total liabilities
Less: cash and cash equivalents
Net debt
Total equity
Net debt to adjusted equity ratio
40. SUBSEQUENT EVENTS
For the year ended 31 December
2023
62,711
(1,039)
61,672
41,573
1.48
2022
48,502
(926)
47,576
48,815
0.97
40.1 On 1 March 2024, the Group executed a loan agreement for up to US$2,200,000 from a company related to two of its
directors and the Company received US$1,000,000 on 5 March 2024. In addition, the loan maturity dates of the loans
held by Inversiones Financieras del Sur S.A., Eduardo Elsztain and Saul Zang aggregating principal of US$4,555 thou-
sands were extended to 30 September 2024 (note 28).
40.2 On 15 February 2024, the Company issued 919,158 non-transferable unsecured convertible notes valued at US$591
thousand immediately following the execution by the investor and the Company of an amendment agreement to allow
for closing the private placement in two tranches. There will be no further tranches under the agreement as the second
tranche was not closed by the due date of 15 March 2024 (note 25.2).
40.3 During January and February 2024, a total of US$2,500 thousand in pre-export facilities were renewed with Santander
Bank for an additional 6 months at an average interest rate of 9.36% per annum as three 6-month pre-export facilities
were renewed as follows: US$1,000 thousand at 9.12%, US$500 thousand at 9.32%, and US$500 thousand at 9.75%
and US$500 thousand at 9.60% (note 28).
41. MATERIAL ACCOUNTING POLICIES
The group has consistently applied the following accounting policies to all periods presented in these consolidated
financial statements, except if mentioned otherwise (see also Note 5).
Change in classification
During the year ended 31 December 2023, the Group updated the classification of certain disclosures to better reflect
the nature of the items.
Changes were made to the Consolidated statement of profit or loss and other comprehensive income to:
• disclose other income and other expenses separately
• reclassify administration expenses to other expenses related to care and maintenance disclose
• disclose finance income and finance costs separately
Changes were made to the Consolidated statement of financial position to reallocate a payable related to the Provisions
for reclamation and rehabilitation.
Changes to the Consolidated statement of cash flows were primarily due to changes to the Consolidated statement of
profit or loss and other comprehensive income.
Austral Gold Limited
99
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Comparative amounts in the profit and loss and other comprehensive income and notes to the financial statements
were re-stated as follows:
Previous financial statement captions
31 December 2022
$000’s
Re-stated financial
statement captions
31 December 2022
$000’s
Consolidated profit or loss and other comprehensive income
Other income
Other expenses
Administration expenses
Finance income
Finance costs
Consolidated statement of financial position
Non-current trade and other payables
Provisions for reclamation and rehabilitation
Consolidated statement of cash flows
Gain on sale of equipment
Provision for reclamation and rehabilitation
Decrease in inventory
Net cash provided through operating activities
Proceeds from sale of inventory and equipment
Net cash flow from investing activities
- Other income
(2,676) Other expenses
(9,007) Administration
expenses
1,292
Finance income
(1,080) Finance costs
(11,471)
1,003
10,934
11,937
(485)
(1,096)
1,655
11,093
535
(11,735)
7,593
1,693
(4,972)
(8,404)
2,134
(1,922)
(11,471)
1,013
10,924
11,937
(590)
(1,094)
1,620
10,953
675
(11,595)
7,593
41. 1
41.2
41.3
41.4
41.5
41.6
41.7
41.8
41.9
41.10
41.11
41.12
41.13
41.14
41.15
41.16
41.17
41.18
41.19
41.20
41.21
41.22
41.23
41.24
Basis of consolidation
Revenue recognition
Goods and services tax (GST)/ Value added tax (VAT)
Foreign currency
Mine properties
Exploration and evaluation expenditure
Property, plant and equipment
Cash and cash equivalents
Income tax
Inventories
Trade and other receivables
Trade and other payables
Interest bearing liabilities
Provisions
Leases
Impairment of non-financial assets
Contributed equity
Earnings per share
Borrowing costs
Employee leave benefits
Segment reporting
Share-based payment arrangements
Assets held for sale
New, revised or amending Accounting Standards and Interpretations adopted
Austral Gold Limited
100
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
41.1 Basis of consolidation
A subsidiary is any entity over which the Group has control. The Group controls an entity when the Group 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. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are de-consolidated from the date that control ceases.
A list of subsidiaries is contained in note 35 to the financial statements. The financial statements of the subsidiaries are
prepared for the same reporting periods as the parent company using consistent accounting policies.
All intercompany balances and transactions between entities in the Group, including any unrealised profits or losses,
have been eliminated on consolidation.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting.
Non-controlling interests in the equity and results of the subsidiaries are shown separately in the statement of profit or
loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group.
Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets
acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit
or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
41.2 Revenue Recognition
Under AASB 15 “Revenue from Contracts with Customers”, the sale of minerals is recognised at the transfer of control or
point of sale, which is when the customer has taken delivery of the goods, the risks and rewards have been transferred
to the customer and there is a valid contract. Determining the timing of the transfer of control at a point in time or over
time requires judgement.
The Group has an agreement with the refinery and sales are made via correspondence or an on-line trading platform
with the customer.
When the customer is the refinery, the control of the metals is transferred upon stowage of the material into the approved
carrier’s vehicle at the gold room at the mine. The metal availability date is when the metals are available for pricing by
the refinery. If the customer is not the refinery, revenue is recognised when the metals are transferred to the customer
upon receipt and the customer obtains control of the metals. Invoices are payable two business days after the metal
availability date. At the Guanaco/Amancaya mine, revenue is recognised when control of the metal is transferred as the
related risk and rewards of ownership is transferred. When the customer is not a refinery, control occurs when the ounces
of metals are transferred to the customer.
The price is set by the market using the London gold market.
41.3 Goods and services tax (GST)/ Value added tax (VAT)
Revenues, expenses and assets are recognised net of the amount of GST/VAT, except where the amount of GST/ VAT
incurred is not recoverable from the tax authorities. In these circumstances the GST/VAT is recognised as part of the cost
of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are
shown inclusive of GST/VAT. Cash flows are presented in the statement of cash flows on a gross basis, except for the
GST/VAT component of investing and financing activities, which are disclosed as operating cash flows.
41.4 Foreign currency transactions
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate when the fair value is determined. Non- monetary
items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of
the transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs.
Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transac-
tions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit or loss.
The assets and liabilities of foreign operations are translated into US dollars at the exchange rates at the reporting date.
The income and expenses of foreign operations are translated into US dollars at the exchange rates at the dates of the
transactions.
41.5 Mine Properties
Mine properties in production represent the aggregated exploration and evaluation expenditure and capitalised develop-
ment costs in respect of areas of interest in which mining is ready to or has commenced. Mine development costs are
deferred until commercial production commences, at which time they are amortised on a units-of-production basis of
Austral Gold Limited
101
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
gold equivalent ounces over mineable reserves. Once production has commenced, further development expenditure
is classified as part of the cost of production, (e.g. stripping costs) unless substantial future economic benefits can be
established.
Amortisation
Aggregated costs on productive areas are amortised over the life of the area of interest to which such costs relate on
the units-of-production basis.
41.6 Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is capitalised in respect of each identifiable area of interest and carried
forward in the statement of financial position where rights to tenure of the area of interest are current; and at least one
of the following conditions is met:
40.6.1 such costs are expected to be recouped through successful development and exploitation of the area of interest
or alternatively, by its sales; or
40.6.2 exploration and/or evaluation activities in the area of interest have not, at reporting date, yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and
active and significant operations in the area of interest are continuing.
Expenditure relating to pre-exploration activities, including costs incurred prior to the Group having an exploration license,
is written off to the profit or loss during the period in which the expenditure is incurred.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
Accumulated expenditure on areas that have been abandoned, or are considered to be of no value, are written off in the
year in which such a decision is made.
When the technical and commercial feasibility of an undeveloped mining project has been demonstrated, the project
enters the construction phase. The cost of the project assets are transferred from exploration and evaluation expenditure
and reclassified into construction phase and include past exploration and evaluation costs, development drilling and
other subsurface expenditure. When full commercial operation commences, the accumulated costs are transferred into
Mine Properties or an appropriate class of property, plant and equipment.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the
area according to the units of production basis.
41.7 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation
The depreciated amount of property, plant and equipment is recorded either on a straight-line basis or on the production
output basis to the residual value of the asset over the lesser of mine life or estimated useful life of the asset.
Depreciation rates and methods are reviewed annually for appropriateness. When changes are made, adjustments are
reflected prospectively in current and future periods only. Fixed assets except for underground mine development are
depreciated on a straight line basis over three years. The depreciation rate used in underground mine development is
provided for over the life of the area of interest on a production output basis. Assets that are idle or no longer ready for
use are not depreciated but are separately tested for impairment and where the recoverable value is less than the book
value of the asset, an impairment is recorded.
De-recognition and disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and
the carrying amount of the asset) is included in the statement of profit or loss in the year the asset is de-recognised.
41.8 Cash and cash equivalents
Cash includes:
i. cash on hand and at call deposits with banks or financial institutions; and
ii. other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.
41.9 Income tax
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted by reporting date.
Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Austral Gold Limited
102
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a trans-
action that is not a business combination and that, at the time of the transaction, affects neither the accounting profit
nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates, or interests in
joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
i. when the deferred income tax asset relating to the deductible temporary difference 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 the accounting profit nor taxable profit or loss; or
ii. when the deductible temporary difference is associated with investments in subsidiaries, associates, or interests in
joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary
difference will reverse in the foreseeable future and taxable profit will be available against which the temporary differ-
ence can be utilised.
The carrying amount of any deferred income tax assets recognised is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply for the year when the
asset is realised or the liability is settled, based on tax laws that have been enacted or substantively enacted at report-
ing date.
Income taxes relating to items recognised directly to equity are recognised in equity and not in profit or loss. Deferred tax
assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation
authority.
41.10 Inventories
Materials and supplies used in production are stated at the lower of cost and net realisable value on a ‘first in first out’
basis. Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate
proportion of variable and fixed overhead expenditure based on normal operating capacity.
If the ore stockpile is not expected to be processed in the normal operating cycle, it is included in non-current assets
and the net realisable value is calculated on a discounted cash flow basis. Stockpiles are measured by estimating the
number of tonnes added and removed from the stockpile, the number of contained ounces based on assay data, and
the estimated recovery percentage. Stockpile tonnages are verified to periodic surveys.
Gold bullion and gold-in-process are valued at the lower of cost and net realisable value. Net realisable value is deter-
mined using the prevailing metal prices.
41.11 Trade and other receivables
Trade accounts receivable, amounts due from related parties and other receivables represent the principal amounts due
at balance date plus accrued interest and less, where applicable, net of provisions for doubtful accounts.
41.12 Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
and which are unpaid. They are measured at amortised cost and are not discounted. The amounts are unsecured.
41.13 Interest bearing liabilities
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method. Where there is an unconditional
right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are clas-
sified as non-current.
41.14 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.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and where appropriate,
the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is
recognised as a finance cost.
Austral Gold Limited
103
Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Mine Closure provision
Close-down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual
materials and remediation of disturbed areas. Provisions for close-down and restoration costs do not include any addi-
tional obligations which are expected to arise from future disturbances. The costs are based on the net present value of
the estimated future costs of a closure.
Estimated changes resulting from new disturbances, updated cost estimates including information from tenders, changes
to the lives of operations and revisions to discount rates are capitalised within the property, plant and equipment. These
costs are then depreciated over the lives of the assets to which they relate.
The amortisation or “unwinding” of the discount applied in establishing the net present value provisions is charged to
the income statement in each period as part of finance costs.
The cost of property, plant and equipment includes the estimated cost of dismantling and removing infrastructure and
restoring the site to the extent that such cost is recognised as a provision.
41.15 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period for time in exchange for consideration.
At commencement or on modification of a contract that contains a lease component, the Group allocates the consid-
eration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases
of property the Group has elected not to separate non-lease components and account for the lease and non-lease
components as a single lease component.
Right of use
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease
term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-
of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as
those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any,
and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
41.16 Impairment of non-financial assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether
there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the
asset, being the higher of the asset’s fair value less costs of disposal or value in use, is compared to the asset’s carrying
value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit or loss. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax rate.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives or more frequently if
events or circumstances indicate that the carrying value may be impaired.
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.
41.17 Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
41.18 Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing net profit after income tax attributable to members of the parent,
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 year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account
Austral Gold Limited
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Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
41.19 Borrowing costs
Borrowing costs are recognised as an expense when incurred unless they are attributable to qualifying assets, in which
case they are then capitalised as part of the assets.
41.20 Employee leave benefits/Short-term employee benefits
Liabilities for employees’ entitlements to wages and salaries, annual leave and other employee entitlements expected
to be settled within 12 months of the reporting date are recognised in the current provisions in respect of employees’
services up to reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabili-
ties for non- accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience
of employee departures, and periods of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible,
the estimated cash outflows.
Superannuation
The Company contributes to employee superannuation funds. Contributions made by the Company are legally enforce-
able and contributions are made in accordance with the requirements of the Superannuation Guarantee Legislation.
41.21 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (“CODM”).
The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the Chief Executive Officer.
41.22 Share-based payment arrangements
The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally
recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount
recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised is based on the number
of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect
such conditions and there is no true-up for differences between expected and actual outcomes.
41.23 Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for sale if it is highly prob-
able that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to
sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities
on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit
assets, investment property or biological assets, which continue to be measured in accordance with the Group’s other
accounting policies. Impairment losses on initial classification as held-for-sale or held-for distribution and subsequent
gains and losses on remeasurement are recognised in profit or loss.
41.24 New, revised or amending Accounting Standards adopted
The Group has adopted all of the new, revised or amending Accounting Standards issued by the AASB that are manda-
tory for the current reporting period. The adoption of these Accounting Standards did not have any material impact on
the financial performance or position of the Group.
Austral Gold Limited
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DIRECTORS’ DECLARATION
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IN THE DIRECTORS’ OPINION:
1. In the opinion of the directors of Austral Gold Limited (“the Company”)
a. the consolidated financial statements and notes that are set out on pages 69 to 105 and
the Remuneration report in sections 41 to 46 in the Directors’ report, are in accordance
with the Corporations Act 2001, including:
i. giving a true and fair view of the Group’s financial position as at 31 December 2023
and of its performance for the financial year ended on that date; and
ii. complying with Australian Accounting Standards and the Corporation Regulations
2021; and
iii. there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
2. There are reasonable grounds to believe that the Company and the group entities identi-
fied in Note 35 will be able to meet any obligations or liabilities to which they are or may
become subject to by virtue of the Deed of Cross Guarantee between the Company
and those group entities pursuant to ASIC Corporations (Wholly owned Companies)
Instrument 2016/785.
3. The directors have been given the declarations required by section 295A of the Corpora-
tions Act 2001 from the chief executive officer and chief financial officer for the financial
year ended 31 December 2023.
4. The directors draw attention to Note 2 to the consolidated financial statements, which
includes a statement of compliance with International Financial Reporting Standards.
Signed on behalf of the Directors by:
Robert Trzebski
Director
Sydney
28 March 2024
Austral Gold Limited
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Annual Report 2023
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Austral Gold Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Austral Gold Limited for
the financial year ended 31 December 2023 there have been:
i.
ii.
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.
KPMG
KPM_INI_01
Jessica Dillon
Partner
Sydney
28 March 2024
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG
name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
Austral Gold Limited
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Annual Report 2023
Austral Gold Limited
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Annual Report 2023
INDEPENDENT AUDITOR’S REPORT
Austral Gold Limited
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Annual Report 2023
Independent Auditor’s Report
To the shareholders of Austral Gold Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Austral Gold Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company 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 ended on
that date; and
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
Basis for opinion
The Financial Report comprises:
•
•
consolidated statement of financial position as at 31
December 2023
consolidated statement of profit or loss and other
comprehensive income, consolidated statement of
changes in equity, and consolidated statement of
cash flows for the year then ended
• Notes, including material accounting policies
• Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year end or from time to time during
the financial year.
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent
member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
All rights reserved. The KPMG name and logo are trademarks used under license by the independent
member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional
Standards Legislation.
Austral Gold Limited
Annual Report 2023
111
Material uncertainty related to going concern
We draw attention to note 3, “Going Concern” in the Financial Report. The events or conditions
disclosed in note 3, indicate a material uncertainty exists that may cast significant doubt on the
Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and
discharge its liabilities in the normal course of business, and at the amounts stated in the Financial
Report. Our opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern, evaluated the extent of
uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of
going concern. Our approach to this involved:
• Analysing the cash flow projections by:
•
Evaluating the underlying data used to generate the projections for consistency with other
information tested by us, our understanding of the Group’s intentions, and past results and
practices;
• Assessing the planned levels of operating cash inflows and outflows, for feasibility, timing,
consistency of relationships and trends to the Group’s historical results, particularly in light of
loss making operations, results since year end, and our understanding of the business,
industry and economic conditions of the Group;
• Assessing significant non-routine forecast cash inflows and outflows for feasibility, quantum and
timing. We used our knowledge of the Group, its industry and current status of those initiatives
to assess the level of associated uncertainty;
• Reading correspondence with existing and potential financiers to understand the financing
options available to the Group, and assessing the level of associated uncertainty resulting from
renegotiation of existing debt facilities and negotiation of additional/revised funding
arrangements;
• Reading Directors’ minutes and relevant correspondence with the Group’s advisors to understand
the Group’s ability to raise additional shareholder funds, and assessing the level of associated
uncertainty; and
•
Evaluating the Group’s going concern disclosures in the Financial Report by comparing them to
our understanding of the matter, the events or conditions incorporated into the cash flow
projection assessment, the Group’s plans to address those events or conditions, and accounting
standard requirements. We specifically focused on the principal matters giving rise to the
material uncertainty.
Key Audit Matters
In addition to the matter described in the Material
uncertainty related to going concern section, we
have determined the matters described below to
be the Key Audit Matters:
• Carrying value of Guanaco/Amancaya mine
assets and property, plant and equipment
• Carrying value of exploration and evaluation
assets
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.
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Carrying value of Guanaco/Amancaya mine assets and property, plant and equipment
(US$51.6 million)
Refer to Notes 21 “Mine properties” and 22 “Property, plant and equipment” to the Financial
Report
The key audit matter
How the matter was addressed in our audit
The Group’s Guanaco/Amancaya mine
properties and property, plant and equipment
are a significant portion (49%) of the Group’s
total assets. The recoverable value of the
Guanaco/Amancaya cash generating unit (CGU)
is based on the Group’s fair value less costs of
disposal model for the CGU, and this is a Key
Audit Mater due to:
•
the high level of judgement used in
evaluating key assumptions applied by the
Group in the Guanaco/Amancaya CGU
model, which are affected by expected
future operating performance and market
conditions, including:
forecast gold and silver price;
level of resources and reserves
estimates for which the Group engaged
an external expert during the financial
year ended 31 December 2022;
future production costs; and
the specific discount rate applied in the
model.
-
-
-
-
•
•
These forward-looking assumptions necessitate
additional scrutiny by us due to:
•
the inherent uncertainties in auditing these
assumptions which are forward looking and
not based on observable data;
the consistency of application of
assumptions and the fluctuations in
forecast gold and silver d(commodity)
pricing increasing the risk of inaccurate
forecasting; and
the sensitivity of assumptions in the
Group’s Guanaco/Amancaya CGU model
such as gold prices, production costs and
discount rate, reducing available headroom.
This drives additional audit effort specific to
their feasibility and consistency of
application.
Our procedures included:
•
•
testing the design and implementation of
the management review control associated
with the approval of the fair value less
costs of disposal model used to assess the
recoverable amount of the Group’s
Guanaco/Amancaya CGU;
evaluating the fair value less costs of
disposal methodology used by the Group
for consistency with the requirements of
the accounting standards;
• working with our valuations specialists
challenging the Group’s key assumptions
used to determine the recoverable amount
of the Guanaco/Amancaya CGU. The
assumptions evaluated are those relating to
gold and silver prices, production costs and
discount rate based on our knowledge of
the industry, publicly available data of
comparable entities and published forecast
price expectations of industry
commentators;
• working with our valuations specialists,
considering the sensitivity of the model by
varying key assumptions, such as
production costs and discount rates within
a reasonably possible range to identify
those assumptions at higher risk of
impairment, inconsistency in application
and to focus our further procedures;
•
•
checking the forecast cost of producing
silver and gold, future productions volumes
and timing to those within the Group’s
Reserves Report, Board approved plans
and budgets. We assessed these against
our understanding of the business, and
historical production costs;
assessing the historical accuracy of
Austral Gold Limited
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Annual Report 2023
.
budgeting and forecasting by the Group to
inform our evaluation of forecasts
incorporated in the Guanaco/Amancaya
CGU model;
assessing the level of resources and
reserves estimates against external expert
report findings subject to assessment in
our prior year audit, our understanding of
current period changes in the business and
against the Group’s mine closure plan; and
assessing the Financial Report disclosures
based on our understanding obtained from
our testing and the requirements of the
accounting standards.
•
•
Carrying value of exploration and evaluation assets (US$27.9 million)
Refer to Note 23 “Exploration and evaluation expenditure” to the Financial Report
The Key Audit Matter
How the matter was addressed in our audit
Exploration and evaluation expenditure
capitalised (‘E&E’) is a key audit matter due to:
•
•
the significance of the balance (27%) of the
Group’s total assets;
the greater level of audit effort to evaluate
the Group’s application of the requirements
of the industry specific accounting standard
AASB 6 Exploration for and Evaluation of
Mineral Resources in particular the
conditions allowing capitalisation of relevant
expenditure and presence of impairment
indicators. The presence of impairment
indicators would necessitate a detailed
analysis by the Group of the value of E&E,
therefore given the criticality of this to the
scope and depth of our work, we involved
senior team members to challenge the
Group’s determination that no such
indicators existed.
In assessing the conditions allowing
capitalisation of relevant expenditure, we focus
on:
•
the determination of the areas of interest
(areas);
Our procedures included:
•
•
•
•
•
evaluating the Group’s accounting policy to
recognise E&E assets using the criteria in
the accounting standard;
testing the design and implementation of
the management review control associated
with the approval of the impairment
assessment used to assess the carrying
value of the E&E assets;
evaluating the Group’s determination of
areas of interest for consistency with the
definition in the accounting standard based
on the Group’s planned work programs and
results of exploration activity of each area
of interest;
for each area of interest, we assessed the
Group’s current rights tenure by examining
the ownership of the relevant license to
government registries and agreements in
place with other parties. We also tested for
compliance with conditions, such as
minimum expenditure requirements, on a
sample of licenses;
testing the Group’s additions to E&E assets
Austral Gold Limited
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Annual Report 2023
•
•
documentation available regarding the
rights to tenure, via licensing, and
compliance with relevant conditions, to
maintain current rights to an area of interest
and the Group’s intention and capacity to
continue the relevant E&E activities; and
the Group’s determination of whether the
E&E assets are expected to be recouped
through successful development and
exploitation of the area of interest, or
alternatively, by its sale.
In assessing the presence of impairment
indicators, we focused on those that may draw
into question the commercial continuation of
E&E activities for the areas of interest where
significant capitalised E&E assets exist.
In addition to the assessments above, and
given the financial position of the Group, we
paid particular attention to:
•
•
the impact of changes in gold and silver
prices to the Group’s strategy and
intentions; and
the ability of the Group to fund the
continuation of activities.
•
•
•
•
for the period by evaluating a sample of
recorded expenditure for consistency to
underlying records, the capitalisation
requirements of the Group’s accounting
policy and the requirements of the
accounting standard;
evaluating Group documents, such as
minutes of director’s meetings and ASX
market announcements, for consistency
with the Group’s stated intentions for
continuing E&E activities in certain areas.
We corroborated this through interviews
with key operational and finance personnel;
analysing the Group’s determination of
recoupment through successful
development and exploration of the area by
evaluating the Group’s documentation of
planned future work programs and project
and corporate budgets for a sample of
areas;
assessing the impact of changes in the
gold and silver prices to the Group’s
modelling underlying their decision for
commercial continuation of activities; and
obtaining project and corporate budgets
identifying areas with existing funding and
those requiring alternate funding sources.
We compared this for consistency with
areas of E&E activities, for evidence of the
ability to fund continued activities. We
identified those areas relying on alternate
funding sources and evaluated the capacity
of the Group to secure such funding.
Other Information
Other Information is financial and non-financial information in Austral Gold Limited’s annual report
which is provided in addition to the Financial Report and the Auditor's Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we 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.
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Annual Report 2023
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
•
implementing necessary internal control to enable the preparation of a Financial Report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error
assessing the Group and Company’s ability to continue as a going concern and whether the
use of the going concern basis of accounting is appropriate. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless they either intend to liquidate the Group and Company or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They 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 the 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.
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Annual Report 2023
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report of
Austral Gold Limited for the year ended 31
December 2023, complies with Section 300A of
the Corporations Act 2001.
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 responsibilities
We have audited the Remuneration Report included in
pages 41 to 46 of the Directors’ report for the year
ended 31 December 2023.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Jessica Dillon
Partner
Sydney
28 March 2024
Austral Gold Limited
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Annual Report 2023
ADDITIONAL INFORMATION
Austral Gold Limited
118
Annual Report 2023
Forward Looking Statements
In this annual report that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of
projections — statements regarding future plans, expectations and developments. Words such as “expects”, “intends”, “plans”, “may”, “could”, “potential”, “should”, “antici-
pates”, “likely”, “believes” and words of similar import tend to identify forward-looking statements. All forward-looking statements are subject to a variety of known and unknown
risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, business integration risks;
uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations,
the state of the capital markets, uncertainty in the measurement of mineral reserves and resource estimates, Austral’s ability to attract and retain qualified personnel and manage-
ment, potential labour unrest, reclamation and closure requirements for mineral properties; unpredictable risks and hazards related to the development and operation of a mine
or mineral property that are beyond the Company’s control, the availability of capital to fund all of the Company’s projects and other risks and uncertainties identified under the
heading “Risk Factors” in the Company’s continuous disclosure documents filed on the ASX and SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors
and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and
management’s assumptions may prove to be incorrect. Austral’s forward-looking statements reflect current expectations regarding future events and operating performance
and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expecta-
tions or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
CORPORATE GOVERNANCE STATEMENT
Austral Gold Limited and its subsidiaries have adopted the corporate governance framework and practices set out in its Corporate
Governance Statement. The Corporate Governance Statement is available on the Company’s website at www.australgold.com.
STATEMENT OF ISSUED CAPITAL
As at 28 February 2024 the total issued capital of Austral Gold Limited was 612,311,353 ordinary shares. 547,725,329 shares were
quoted on the Australian Securities Exchange under the code AGD. The only shares of the Company on issue are fully paid ordinary
shares. None of these shares are restricted securities or securities subject to voluntary escrow within the meaning of the Listing Rules of
the Australian Securities Exchange. 64,586,024 shares were quoted on the Toronto Venture Exchange under the code AGLD, of which
4,765,285 shares were also quoted on the OCTQB. There are no restrictions on the voting rights attached to the fully paid ordinary
shares. On a show of hands, every member present in person, by proxy, by attorney or by representative shall have one vote. On a poll,
every member present in person, by proxy, by attorney or by representative shall have one vote for every share held.
DISTRIBUTION OF FULLY PAID ORDINARY SHARES
As at 29 February 2024
Size of Holding
1-1000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
>100,001
Holders
Shares held
% of issued capital
946
519
199
379
161
2,204
301,448
1,427,835
1,536,109
13,952,386
595,093,575
612,311,353
0.05%
0.23%
0.25%
2.28%
97.19%
100%
SUBSTANTIAL SHAREHOLDERS
The Company has been notified of the following substantial shareholdings as at 29 February 2024:
Registered Holder
HSBC Custody Nominees
(Australia) Limited
Citicorp Nominees Pty Limited
HSBC Custody Nominees
(Australia) Limited
HSBC Custody Nominees
(Australia) Limited
Beneficial Holder
Shares Held
Inversiones Financieras
Del Sur SA (IFISA)
Inversiones Financieras
Del Sur SA (IFISA)
332,576,152
47,658,462
Eduardo Elsztain
42,199,990
Guanaco Capital
Holding Corp
38,859,956
Austral Gold Limited
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Annual Report 2023
TWENTY LARGEST SHAREHOLDERS
Rank
Name
No. of shares % of issued capital
1
2
3
4
5
6
7
8
9
EDUARDO SERGIO ELSZTAIN
461,294,560
75.34%
MICHAEL D WINN
15,502,212
2.53%
EMX ROYALTY CORPORATION
9,381,770
1.53%
HSBC CUSTODY NOMINEES
9,244,452
1.51%
STABRO KASANEVA
7,881,230
1.29%
BNP PARIBAS NOMINEES
5,691,714
0.93%
CITICORP NOMINEES PTY LIMITED
3,931,343
0.64%
WAYNE HUBERT
2,545,500
0.42%
MRS ANNA VORONTSOVA
2,312,594
0.38%
10
SAUL ZANG
1,640,763
0.27%
11
MR PHILIP BOMFORD
1,420,000
0.23%
12
MR POH SENG TAN
1,300,000
0.21%
13
MR MICHAEL WEHBE
1,160,000
0.19%
14
ASOCIACION ISRAELITA ARGENTINA
1,158,265
0.19%
15
FUSION ELECTRICS (AUST) PTY
1,000,000
0.16%
16
MS LEANNE MARION HUNTER
1,000,000
0.16%
17
MR DEAN MICHAEL MATHEWS
1,000,000
0.16%
18
MRS NICOLA PAULINE COURT
900,000
0.15%
19
TAYLOR FAMILY INVESTMENTS PTY
800,000
0.13%
20
MR ALEXANDER IAN BURTON
696,635
0.11%
Total
Other
528,364,403
86.29%
83,946,950
13.71%
Total Shares on issue
612,311,353
100%
*Beneficial holdings
Austral Gold Limited
120
Annual Report 2023
Austral Gold Limited
121
Annual Report 2023
Austral Gold Limited
122
Annual Report 2023
Austral Gold Limited
123
Annual Report 2023
www.australgold.com