Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD OTQB: AGLDF
Level 5, 137-139 Bathurst Street, Sydney NSW 2000 | info@australgold.com | www.australgold.com
MEDIA RELEASE
28 March 2025
Austral Gold Files 2024 Annual Report
Established gold producer Austral Gold Limited’s (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 2024 (“FY24”). The complete Report is available under the Company’s profile
at www.asx.com.au, www.sedarplus.ca and on the Company’s website at 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 additional information please contact:
David Hwang
Jose Bordogna
Joint Company Secretary
Chief Financial Officer and Joint Company Secretary
Austral Gold Limited
Austral Gold Limited
david@confidantpartners.com
jose.bordogna@australgold.com
+61 433 292 290
+61 466 892 307
ASX: AGD | TSXV: AGLD
OTCQB: AGLDF
info@australgold.com
https://australgold.com
Austral Gold Limited
ABN 30 075 860 472
Level 5, 137-139 Bathurst Street
Sydney NSW 2000
Unique Value
Proposition for
Gold Production,
Exploration and
Investments in
the Americas
www.australgold.com
Annual Report for the year ended
31 December 2024
TABLE OF
CONTENTS
Corporate Directory
4
Value Proposition
6
Chair’s Letter
10
Key Principles
12
Mineral Reserves and Resources
18
Review of Activities
26
Directors’ Report
34
Financial Statements
62
Directors’ Declaration
106
Auditor’s Independence Declaration
107
Independent Auditor’s Report
108
Additional Information
116
Austral Gold Limited
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Annual Report 2024
Austral Gold Limited
3
Annual Report 2024
KEY MANAGEMENT
Stabro Kasaneva
Chief Executive Officer and Executive
Director
Rodrigo Ramirez*
Former Vice President of Operations
Jose Bordogna
Chief Financial Officer and Joint
Company Secretary
DIRECTORS
Eduardo Elsztain
Chair & Non-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
David Hwang
Joint Company Secretary
Confidant Partners
REGISTERED OFFICE
Level 5 137-139 Bathurst 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
Ciudad de 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
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
CORPORATE
DIRECTORY
* no longer a KMP effective 1 July 2024
Austral Gold Limited
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Annual Report 2024
Austral Gold Limited
5
Annual Report 2024
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 2024
UNIQUE
EXPOSURE TO GOLD
PRODUCTION
EXPLORATION
AND INVESTMENTS
IN THE AMERICAS
Austral Gold Limited
7
Annual Report 2024
MINING
PORTFOLIO
LOCATED IN RICH MINERAL ENDOWMENTS
Operations
Equity investment
SOUTH AMERICA
TRIASSIC CHOIYOI BELT,
ARGENTINA
Casposo-Manantiales Mine Complex
100% Ownership
Target to restart the Casposo Plant
during 2nd half of 2025
PALEOCENE BELT, CHILE
Guanaco-Amancaya Mine Complex
100% Ownership
Production | Exploration
DESEADO MASSIF,
ARGENTINA
Unico Silver
5.2% Ownership
Cerro Leon and Joaquin Exploration
Projects
Austral Gold Limited
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Annual Report 2024
Austral Gold Limited
9
Annual Report 2024
LETTER FROM
NON-EXECUTIVE
CHAIR
EDUARDO ELSZTAIN
Non-Executive Chair
Austral Gold Limited
10
Annual Report 2024
This report outlines our efforts to generate value for stakeholders
and provides an update on 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 FY24, we remained committed to advancing our two 100%
owned operational clusters in Argentina and Chile. At our flagship
Guanaco/Amancaya project in Chile, we navigated challenges
while continuing the transition from the Amancaya underground
mine operations to the new Heap Reprocessing Project (the Heaps
Project). Meanwhile, at the Casposo/Manantiales cluster in Argen-
tina, we issued an updated Mineral Resource Estimate(1) and, near
the end of the year, we commenced plans to refurbish the Casposo
Plant as we entered into a toll treatment agreement with ASX-
listed Challenger Gold Limited to commence operations during
the second half of 2025.
Another key highlight of FY24 was the continued support from the
Company’s financial lenders and related parties, who renewed all
existing facilities and provided additional funding with extended
terms. This strengthened the Company’s financial debt maturity
profile and, together with the monetisation of certain equities from
our investment portfolio provided liquidity, reducing net current
liabilities from US$23.7 million as of 31 December 2023 to US$5.8
million as of 31 December 2024.
A summary of our performance by strategic pillars is as follows:
Production: Looking at the numbers, in FY24, Guanaco/Aman-
caya delivered total production of 15,573 gold-equivalent ounces
(GEOs), generating an adjusted gross profit of US$6.8 million with
an 18.5% margin (excluding depreciation and amortization). While
production was lower than our initial FY24 guidance, profitability
slightly exceeded FY23 figures of US$6.6 million (13.7% margin)
when production reached 24,879 GEOs. The variance in produc-
tion for FY24 compared to initial guidance was primarily due to
a prolonged delay by a supplier in repairing the HRC 800 equip-
ment, a critical component of the heap leaching processing line.
This impacted the expected contribution from the Heaps Project
in FY24, resulting in actual production of 4,694 GEOs. Despite
this challenge, the Company successfully integrated the agitation
and leaching production lines, slightly mitigating the impact of the
HRC 800 delay.
Regarding our second operational cluster, Casposo/Manantiales in
Argentina, we continued to evaluate various scenarios for a poten-
tial restart of operations. In parallel, we initiated plans to refurbish
the processing plant, with the goal of commencing operations in
the second half of 2025, to enable Austral to process mineralised
material from Challenger’s 100%-owned Hualilán Project over a
three-year term under the toll treatment agreement executed by
the end of 2024.
Exploration: On the exploration front, our focus was on Argen-
tina, where we successfully completed and issued an updated
Mineral Resource Estimate for the Casposo/Manantiales mine site.
This estimate was prepared by an independent Qualified Person
in accordance with NI 43-101 and JORC (2012) standards. The
consolidation of Casposo’s mineral resource inventory marks a
significant step towards our plans for restarting mining operations.
Equity Investments: In FY24, our primary focus regarding equity
investments was on maintaining our position in ASX-listed Unico
Silver Limited, a silver development company with assets in Argen-
tina, including Austral’s former Pinguino project. This investment,
initially made in FY23, continued to be a key part of our portfolio.
Throughout FY24, our broader equity investments played a crucial
role in securing necessary funding for the Company through the
sale of equity holdings in CSE, TSXV, and ASX-listed companies.
Outlook: Looking ahead to FY25, we project total production
of 18,000 to 20,000 GEOs from the Guanaco/Amancaya mine
site, with approximately 80% to be sourced from the Heaps Proj-
ect. Additionally, we expect to complete the refurbishment of the
Casposo plant and restart operations in the second half of the year.
We expect 2025 to be a transformational year for Austral, with our
strategic goals for the operational clusters in Argentina and Chile
focused on delivering sustainable production and positive cash
flows for the Company. Additionally, we are optimistic about the
business environment, driven not only by strong fundamentals in
metals prices but also by renewed interest in Argentina and the
opportunities for growth and development in its mining sector.
We are proud to celebrate 2025 as our 15th consecutive year of
production at the Guanaco/Amancaya mine site, which began in
late 2010. We would like to sincerely express our gratitude to our
shareholders for their unwavering support, to our employees, led
by CEO Stabro Kasaneva, as well as to our suppliers, contractors,
communities, and Board members for their invaluable contribu-
tions throughout the year.
Yours sincerely,
EDUARDO ELSZTAIN
Non-Executive Chair
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 FI-
NANCIAL YEAR ENDING 31 DECEMBER 2024 (“FY24”).
(1) NI 43-101 Technical Report on Mineral Resources Estimate on the Casposo Mine Department of Calingasta, San Juan Province, Argentina issued 19 July 2024, prepared by
Qualified Person Marcos Valencia FAusIMM, Registered Member ChMC
Austral Gold Limited
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Annual Report 2024
KEY
PRINCIPLES
Austral Gold Limited
12
Annual Report 2024
BE SOCIALLY AND
ENVIRONMENTALLY
RESPONSIBLE AND
STRIVE TO REDUCE
SAFETY RISKS AND
OPERATING COSTS
BE THE PREFERRED
PARTNER FOR
COMMUNITIES,
GOVERNMENTS AND
COMPANIES TO
OPERATE AND
EXPLORE PRECIOUS
METAL PROJECTS IN
THE AMERICAS
MAXIMISE VALUE
CREATION FOR
STAKEHOLDERS
Austral Gold Limited
13
Annual Report 2024
PATHWAY TO AN
ESTABLISHED GOLD
PRODUCER
600,000
500,000
400,000
300,000
200,000
100,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
Acquired
Guanaco
Project
Started UG
Mining at
Guanaco
Acquired Casposo
Mine and re-started
operations
Development
of Guanaco
Project
Acquired
Amancaya
Project
Started Open Pit
and Heap Leaching
Operations at
Guanaco
CONSISTENT JOURNEY DELIVERING PRODUCTION
+ 10 YEARS | + 500,000 GOLD OUNCES PRODUCED
Austral Gold Limited
14
Annual Report 2024
2017
2018
2019
2020
2021
2022
2023
2024
Acquired Exploration
Rights of Manantiales
Property adjacent
to Casposo
Started Mining
at Amancaya
Completed
Construction of
the Heap
Reprocessing
project at
Guanaco-
Amancaya
Updated
Mineral
Resource
Estimate
of Casposo/
Manantiales
Extended Guanaco-
Amancaya LOM to
2033 (10 Years) *
Placed Casposo
on Care & Maintenance
Constructed Agitation
Leaching Plant at the
Guanaco-Amancaya
Cluster
Launched Drilling
Program at Casposo-
Manantiales with the
strategic objective to
restart operations
* See notes to the mineral resources & ore reservesa statement on page 21
Austral Gold Limited
15
Annual Report 2024
STRONG M&A TRACK-RECORD
2013
2014
2016
2017
2019
15% Private Placement
in Goldrock Mines
20% Private Placement
in Argentex Mining
51% Acquisition of
Casposo Mine from Troy
Resources
Friendly takeover
of Argentex Mining
Secondary listing of Aus-
tral on the TSXV
Sold interest in
Goldrock Mines
Acquisition of
remaining interest
in Casposo Mine
22% Private Placement
in Rawhide mine
(Nevada, US)
Acquisition of
Amancaya Project
from Yamana Gold
Acquisition of U/G
mining contractor
Purchase of Kinross NPI
Royalty on
Guanaco
Acquisition of two Projects
from Revelo Resources
(stock transaction)
Additional 19% Acquisition of
Casposo Mine
PATHWAY TO AN
ESTABLISHED GOLD
PRODUCER
+ 10 YEARS | + 500,000 GOLD OUNCES PRODUCED
Austral Gold Limited
16
Annual Report 2024
2020
2021
2022
2023
2024
Earn-in Agreement
to acquire up to
100% of the Sierra
Blanca project
adjacent to
Pinguino
Agreement to enter into
a JV with Mexplort to ex-
plore projects in the Indio
Belt (San Juan province,
Argentina) plus an earn-
in agreement to acquire
50% of the Jaguelito
Project
Realised gains from the
sale of equity investments
in CSE listed (Pampa Met-
als), TSXV-listed Revival
Gold, and privately held
Sierra Blanca, as well as
partial sales of ASX-listed
Unico Silver (Unico) shares,
retaining a 5.2% holding
at the end of FY24.
Executed Toll Agreement
with ASX-listed Chal-
lenger Gold to process
mineralised material from
their Hualilan Project at
Casposo’s plant
Friendly takeover
of Revelo Resources
(stock and cash
transaction)
~20% Private Placement in
Ensign Minerals
(Utah, US)
Completed the sale of SCRN Properties (owner
of Pinguino) to ASX listed Unico Silver Limited
for approx. US$10M comprising cash, shares
and options
Austral Gold Limited
17
Annual Report 2024
MINERAL RESERVES
AND RESOURCES
GUANACO-AMANCAYA (CHILE)
TABLE 1: SUMMARY OF MINERAL RESERVES
31 December 2024
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya
Underground
Proven
-
-
-
-
-
Probable
-
-
-
-
-
P + P
-
-
-
-
-
Inesperada
Open Pit
Proven
-
-
-
-
-
Probable
1,607
1.05
14.39
54
744
P + P
1,607
1.05
14.39
54
744
Heap Reprocessing Project
Heap
Proven
9,305
0.66
3.16
198
946
Probable
-
-
-
-
-
P + P
9,305
0.66
3.16
198
946
Total
Total Proven
9,305
0.66
3.16
198
946
Total Probable
1,607
1.05
14.39
54
744
Total P + P
10,912
0.72
4.82
252
1,690
See notes to Mineral Reserves on page 21.
Austral Gold Limited
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Annual Report 2024
TABLE 2: SUMMARY OF MINERAL RESOURCES
31 December 2024
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(000 oz Au)
(000 oz Ag)
Guanaco and Amancaya
Underground
Measured
562
2.65
12.91
48
233
Indicated
943
2.57
17.01
78
516
M + I
1,505
2.60
15.48
126
749
Inferred
350
4.15
8.25
47
93
Insperada
Open Pit
Measured
-
-
-
-
-
Indicated
1,682
1.05
14.38
57
778
M + I
1,682
1.05
14.38
57
778
Inferred
74
0.91
12.40
2
30
Heap Reprocessing Project
Heap
Measured
10,482
0.66
3.09
223
1,042
Indicated
-
-
-
-
-
M + I
10,482
0.66
3.09
223
1,042
Inferred
1,907
0.55
2.64
34
162
Total
Total Measured
11,044
0.76
3.59
271
1,275
Total Indicated
2,625
1.60
15.33
135
1,294
Total M + I
13,669
0.92
5.84
406
2,569
Total Inferred
2,331
1.10
3.79
83
285
See notes to Mineral Resources on page 21.
Austral Gold Limited
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Annual Report 2024
TABLE 3: 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
Underground
Proven
2
2.81
5.32
0
0
Probable
3
4.26
8.34
0
1
P + P
5
3.74
7.27
0
1
Inesperada
Open Pit
Proven
-
-
-
-
-
Probable
1,607
1.05
14.39
54
744
P + P
1,607
1.05
14.39
54
744
Heap Reprocessing Project
Heap
Proven
10,082
0.67
3.15
217
1,022
Probable
-
-
-
-
-
P + P
10,082
0.67
3.15
217
1,022
Total
Total Proven
10,084
0.67
3.15
217
1,022
Total Probable
1,611
1.06
14.38
55
745
Total P + P
11,694
0.72
4.70
272
1,767
See notes to Mineral Reserves on page 21.
Austral Gold Limited
20
Annual Report 2024
TABLE 4: 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
Underground
Measured
586
2.66
12.69
50
239
Indicated
947
2.60
17.06
79
520
M + I
1,533
2.62
15.39
129
759
Inferred
350
4.15
8.25
47
93
Insperada
Open Pit
Measured
-
-
-
-
-
Indicated
1,682
1.05
14.38
57
778
M + I
1,682
1.05
14.38
57
778
Inferred
74
0.91
12.40
2
30
Heap Reprocessing Project
Heap
Measured
11,259
0.67
3.09
242
1,118
Indicated
-
-
-
-
-
M + I
11,259
0.67
3.09
242
1,118
Inferred
1,907
0.55
2.64
34
162
Total
Total Measured
11,845
0.77
3.56
292
1,357
Total Indicated
2,630
1.61
15.35
136
1,298
Total M + I
14,474
0.92
5.70
428
2,655
Total Inferred
2,331
1.10
3.79
82
284
Notes to Mineral Reserves:
1.
Mineral Reserves follow CIM (2014) definitions and are compliant with the JORC Code.
2.
Mineral Reserves are reported on a 100% ownership basis and estimated at the
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.
Mineral Reserves are estimated using an average long term gold price of US$1,700/oz
and silver price of US$22/oz.
4.
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.
9.
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
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.
10. Metallurgical recoveries for Heaps I, II, and II are 54%, 70%, and 46% for gold
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.
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.
• 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. 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.
9. A minimum mining width of 1.5 m is used for resource underground shapes for
the Amancaya and Guanaco mines.
10. Bulk densities are 2.5 t/m3 for Amancaya and Guanaco, 2.44 t/m3 for Inesperada,
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
21
Annual Report 2024
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, 2023 and 2024. The Company ensures that the
Ore Reserves and Mineral Resource Estimates are subject to appro-
priate 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 Statement
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 Guillermo Valdés, a Competent Person
(CP 0475) who is a registered member of the Comision Calificadora
de Competencias en Recursos y Reservas Mineras. Guillermo
Valdés has sufficient experience that is relevant to the type of
deposit and the mining methods of exploitation under consider-
ation and to the activity being undertaken to qualify as a Compe-
tent Person as defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Explora tion Results, Mineral Resources
and Ore Reserves’. Guillermo Valdés 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
22
Annual Report 2024
CASPOSO-MANANTIALES (ARGENTINA)
TABLE 5: SUMMARY OF MINERAL RESOURCES
31 December 2024
Tonnes
Grade
Contained Metal
Classification
(000 t)
(g/t Au)
(g/t Ag)
(g/t) AuEq
(oz Au)
(oz Ag)
(oz AuEq)
Casposo (including Manantiales)
Open Pit
Measured
15,600
3.89
92.39
5.04
1,949
46,338
2,528
Indicated
332,174
4.00
65.53
4.82
42,677
699,810
51,425
M + I
347,774
3.99
66.73
4.83
44,626
746,148
53,953
Inferred
119,233
10.80
23.90
11.10
41,419
91,610
42.654
Underground
Measured
-
-
-
-
-
-
Indicated
346,692
2.98
181.2
5.25
33,240
2,019,758
58,486
M + I
346,692
2.98
181.2
5.25
33,240
2,019,758
58,486
Inferred
543,059
3.75
74.94
4.69
65,542
1,308,238
81,895
Stockpile
Heap
Measured
-
-
-
-
-
-
-
Indicated
374,003
1.26
74.18
2.19
15,151
891,975
26,301
M + I
374,003
1.26
74.18.
2.19
15,151
891,975
26,301
Inferred
-
-
-
-
-
-
-
Total
Total Measured
15,600
3.89
92.39
5.04
1,949
46,338
2,528
Total Indicated
1,052,869
2.69
102.69
4.02
91,067
3,611,554
136,212
Total M + I
1,068,469
2.71
106.48
4.04
93,016
3,657,882
138,740
Total Inferred
662,291
5. 02
65.74
5.85
106,961
1,399,848
124,459
Notes to Mineral Resources:
• Effective date April 30, 2024
• Stationary domains were modelled according the lithological and structural continuities.
• Mineral Resources were classified and reported in accordance with the NI 43-101.
• Indicated Resources was declared under a grid pattern of 25 m in the strike direction and 25 m in the dip direction.
• Mineral Resources are defined via optimization for open pit and stockpile.
• A cut-off grade of 1.0 g/t AuEq was defined to mine Stockpiles.
• A cut-off grade of 1.5 g/t AuEq was defined to Open Pit Mining Method.
• A cut-off grade of 2.0 g/t AuEq was defined to Underground Mining Method beneath the open pit shells and optimized using the Vulcan Stope Optimizer.
• Metallurgical recoveries were applied by deposit.
• Selective Mining Unit were defined and built according to the underground optimization. Dilution has been incorporated into the SMU.
• A bulk density of 2.5 ton/m3 has been applied to all domains in open pit and underground and 1.8 ton/m3 for stockpile.
• Numbers may not add due to rounding.
Austral Gold Limited
23
Annual Report 2024
NOTES TO THE MINERAL RESOURCES
STATEMENT
Casposo Mine
The Technical Report for the Casposo Mine was prepared by
Marcos Valencia FAusIMM, Registered Member ChMC, an Inde-
pendent “Qualified Person” as defined by NI 43 101 (the “QP”).
The scientific and technical information contained in this report
release is extracted from the Technical Report. On 23 July 2024,
the Technical Report to support the updated Mineral Resource
estimates for the Casposo Mine, prepared in accordance with NI
43-101, was filed on the ASX at www.asx.com.au. And SEDAR+
(www.sedarplus.ca).
Competent Persons Statement
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
24
Annual Report 2024
Austral Gold Limited
25
Annual Report 2024
REVIEW OF
ACTIVITIES
REVIEW OF RESULTS
For the Year Ended 31 December 2024
The following report on the review of results for the year ended 31 December 2024 (“FY24”) and 2023 (“FY23”) together with the
consolidated financial report of Austral Gold Limited (the Company) and its subsidiaries (referred to hereafter as the Group)
PRINCIPAL ACTIVITIES
Produced 15,573 gold
equivalent ounces at the
Group’s Guanaco/Amancaya
mine complex, integrating
agitation and heap leaching
processes, with gradual
contributions from the new
Heap Reprocessing Project,
partially offsetting the
depletion in production at the
Amancaya underground mine
HRC equipment, used in the
Heap Reprocessing Project
launched in 2023, was
returned to Guanaco in Q4
2024 after prolonged repair
delays from the supplier
since Q1 2024
Issued an updated Mineral
Resource Estimate for the
Company’s 100% owned
Casposo-Manantiales mine
complex, prepared by an
independent Qualified
Person in accordance with
NI 43-101 and JORC (2012)
Executed a Toll Treatment
Agreement with ASX-listed
Challenger Gold Limited
(“Challenger”) to process
mineralised material from
Challenger’s Hualilan project
at Casposo’s Plant, in San
Juan, Argentina
Renewed all existing loan
facilities and secured
additional financing from
banks and related parties,
enhancing the Company’s
financial debt maturity
profile. This included a 2-year
loan of up to US$7,000
thousand loan to refurbish the
Casposo’s Plant
Significant improvement
of liquidity indicators,
decreasing net current
liabilities from US$23,685
thousand on 31 December
2023 to US$5,823 thousand
at 31 December 31, 2024
Realised gains from the sale
of equity investments in ASX
and TSXV publicly listed
mining companies, while
maintaining a 5.2% interest
in ASX-listed company Unico
Silver Limited (“Unico”)
There were no other significant changes in our principal activities
during the year. All resolutions were passed at the Company’s
28 May 2024 Annual General Meeting.
Austral Gold Limited
26
Annual Report 2024
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
For the year ended 31 December 2024, 2 lost-time accidents (LTAs) and 11 nil-lost-time accidents (NLTAs) were recorded
among employees of Guanaco/Amancaya and third party contractors, while no LTAs or NLTAs occurred at Casposo/Manan-
tiales during the same period.
COMMUNITY ACTIVITIES
Austral Gold has an extensive history of being a committed neighbor to the communities in which it operates.
Our support to the communities surrounding our projects in Chile and Argentina 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
Guanaco/Amancaya
The environmental monitoring program implemented includes
meteorology, air quality, water quality, flora and fauna,
and archaeology. 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.
The results of the environmental monitoring campaigns are
regularly submitted electronically to the Environmental Super-
intendency (“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 mine complex is in an arid area with
infrequent surface runoff resulting from precipitation. There is
no discharge of water to the environment from the Guanaco/
Amancaya mine complex. 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.
Currently the water supply 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. Freshwa-
ter is required only for road irrigation (dust suppression) 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 moni-
toring 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 wastewa-
ter is sent to sewage treatment plants, and the treated effluent
is used for road irrigation and operation of drilling equipment
for exploration activities.
Casposo/Manantiales
The environmental monitoring program at the Casposo/
Manantial complex also includes meteorology, air quality,
water quality, flora and fauna, and archaeology. A dedicated
meteorological station operates at Casposo, independent of
the air quality monitoring system.
Flora, fauna, and fish populations are monitored within the
project area, while flow monitoring is conducted at four loca-
tions: Río Castaño, Río Los Patos, Río San Juan, and Verti-
ente 6. This work is undertaken by the Water Institute of the
Universidad Nacional de San Juan.
The tailings deposit is subject to ongoing monitoring by the
Seismology Institute of the National University of San Juan,
with additional semi-annual assessments by a surveyor engi-
neer to detect any positional changes.
Casposo also conducts monthly water well monitoring, with
qualitative analysis performed by an external laboratory.
In January 2025, updates V and VI of the Environmental
Impact Assessment (EIA) were approved. Casposo received
the ISO 14001 certification for its Environmental Management
Plan in 2012.
Austral Gold Limited
27
Annual Report 2024
REVIEW OF RESULTS
OF OPERATIONS
A summary of key operating results for FY24 and FY23 are set out in the following tables for comparative purposes.
KEY OPERATIONAL INDICATORS
Guanaco/Amancaya Operations
Year ended 31 December
2024
2023
Safety Indicators
Lost-Time Accidents (LTA)
2
7
Non-Lost-Time Accidents (NLTA)
11
11
Mining
Mined Ore (t)
28,567
239,356
Agitation Leaching Process
Processed (t)
325,251
343,835
Plant Grade Mine (g/t Au)
2.45
2.79
Plant Grade Heap (g/t Au)
1.03
1.47
Plant Grade Mine (g/t Ag)
7.01
8.83
Plant Grade Heap (g/t Ag)
3.40
3.74
Gold recovery rate (%)
84.67
92.76
Silver recovery rate (%)
59.86
76.32
Gold produced (Oz)
10,594
22,676
Silver produced (Oz)
24,373
69,388
Gold-Equivalent produced (Oz)(1)
10,879
23,504
Heap Leaching Process
Gold produced (Oz)
4,544
1,336
Silver produced (Oz)
12,781
3,232
Gold-Equivalent produced (Oz)
4,694
1,375
Total Production
Gold produced (Oz)
15,138
24,012
Silver produced (Oz)
37,154
72,620
Gold-Equivalent produced (Oz)
15,573
24,879
C1 Cash Cost of Production (US$/AuEq Oz)(2)
1,943
1,645
All-in Sustaining Cost (US$/Au Oz)(3)
2,164
2,004
Realised gold price (US$/Au Oz)
2,358
1,942
Realised silver price (US$/Ag Oz)
28
23
Gold Equivalent sales volume
15,605
24,578
1. (AuEq) ratio is calculated at: 85.4:1 for FY24 and 83.8:1 Ag:Au for FY23
2. The cash cost (C1) includes: Mine, Plant, On-Site G&A, Smelting, Refining, and Royalties (excludes Corporate G&A). It is the cost of production per gold equivalent ounce.
3. The All-in Sustaining Cost (AISC) includes: C1, Sustaining Capex, Brownfield Exploration, and Mine Closure Amortisation
4. Composition of the cash cost (C1) and All-in Sustaining Cost (AISC) are provided on page 29
Austral Gold Limited
28
Annual Report 2024
Cash Costs of Production (C1) refer to the direct expenses incurred during the production of gold and silver. These costs are
typically reported on a per-ounce basis while All in Sustaining costs (AISC) provides a comprehensive view of the total costs
included with gold and silver production and includes C1 plus sustaining costs to maintain ongoing mining operations.
KEY OPERATIONAL INDICATORS
Cash Cost of Production (C1) and All-in Sustaining Cost (AISC) Breakdown
Expressed in USD per GEO(1)
Year ended 31 December
2024
2023
Mining
235
700
Plant
1,265
557
Geology, engineering, and laboratory
93
123
Onsite general and administration
230
240
Smelting and refining
52
27
Royalties and taxes
62
48
Inventory movement
3
(52)
Other
3
2
Cash Cost (C1)
1,943
1,645
Reclamation & Remediation amortisation
16
1
Sustaining capital expenditure
30
218
Other administration costs
85
56
Financial leases
90
84
All in Sustaining costs (AISC)
2,164
2,004
1. Gold Equivalent Ounce
KEY FINANCIAL RESULTS
Thousands of US$
Year ended 31 December
2024
2023
Revenue
36,790
47,729
Gross profit
3,557
546
Gross profit %
9.7%
1.1%
Adjusted gross profit (excluding depreciation and amortisation)
6,797
6,557
Adjusted gross profit % (excluding depreciation and amortisation)
18.5%
13.7%
Adjusted earnings
3,862
4,174
Adjusted earnings per share (basic and fully diluted)
0.63c
0.68c
Loss before income tax
(32,209)
(7,951)
Loss attributed to owners of the Company
(27,068)
(7,229)
Loss attributed to non-controlling interests
(6)
(14)
Loss per share (basic and fully diluted)
(4.42) c
(1.18) c
Comprehensive loss
(27,022)
(7,242)
Note: Adjusted earnings and basic adjusted earnings per share are non-IFRS measures that the Company considers to better reflect normalised 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.
Austral Gold Limited
29
Annual Report 2024
ADJUSTED EARNINGS
Thousands of US$
Year ended 31 December
2024
2023
Loss before income tax
(32,209)
(7,951)
Depreciation and amortisation(1)
3,272
6,048
Impairment loss on mine properties
2,550
-
Impairment loss on property plant and equipment
16,705
-
Impairment loss on exploration and evaluation expenditure
8,836
3,981
Other (income)(2)
Gain on sale of subsidiary
(91)
(1,964)
Gain on sale and revaluation of financial assets
(1,724)
(1,033)
Gain on sale of equipment
(654)
(46)
Equipment rental
(8)
(222)
Other(3)
(381)
(466)
Other expenses(4)
Care and maintenance(7)
2,096
2,125
Loss on fair value of financial assets
-
992
Rawhide option and due diligence expenses
-
617
Other
1,880
669
Finance income(5)
Interest income
(101)
(140)
Present value adjustment to mine closure provision
-
(36)
Finance costs(6)
Interest expense
3,392
1,395
Present value adjustment to mine closure provision
299
-
Present value adjustment to GST/VAT receivable
-
145
Share of loss of associates
-
60
Adjusted Earnings
3,862
4,174
1. Includes US$18 thousand and US$14 thousand (2023: US$18 thousand and US$19 thousand) of depreciation and amortisation included in Care and maintenance in Other
Expenses (note 8) and Administration (note 9) respectively
2. Note 7 to the financial statements
3. Reconciles with note 7 to the financial statements
4. Note 8 to the financial statements
5. Excluding depreciation and amortisation
6. Note 10 to the financial statements
7. Note 11 to the financial statements
Austral Gold Limited
30
Annual Report 2024
Thousands of US$
Year ended 31 December
2024
2023
Cash and cash equivalents
3,590
1,261
Current assets
20,177
17,357(2)
Non-current assets
52,913
87,149
Bank overdraft
199
222
Current liabilities
26,000
41,042
Non-current liabilities
32,725
21,891
Net assets
14,365
41,573
Net current liabilities
(5,823)
(23,685)
Current loans and borrowings
5,433
13,540
Non-current loans and borrowings
19,901
2,568
Current lease liabilities
677
1,169
Non-current lease liabilities
385
1,143
Combined debt (bank overdraft, loans, borrowings and lease liabilities)
26,595
18,642(2)
Combined net debt (net of cash and cash equivalents)
23,005
17,381(2)
Current ratio(1)
0.8
0.4
Total liabilities to net assets
4.1
1.5
1. Current Assets divided by Current Liabilities
2. Changes from disclosure in the FY23 annual report. For details of changes, see note 39 of the financial statements
OPERATING AND FINANCIAL RESULTS OF THE GROUP(1)
During FY24, the Group realised a loss before and after income tax of US$32,209 thousand (FY23: $7,951 thousand) and US$27,074
thousand (FY23:US$7,243 thousand), respectively.
Sales revenues from operations totaled US$36,790 thousand compared to US$47,729 thousand in FY23. The gross profit (including
depreciation and amortisation) increased to US$3,557 thousand (9.7% margin) in FY24 compared to US$546 thousand (1.1% margin) in
FY23, while the gross profit margin (excluding depreciation and amortisation) increased to 18.5% in FY24 compared to 13.7% in FY23.
The increase in gross profit and margin was mainly due to higher sales prices, partially offset by higher costs of production.
The Group’s results during FY24 were also impacted by the following:
i.
A non-cash impairment of US$16,705 thousand on property plant and equipment (FY23: US$nil), as the Company impaired the
remaining book value attributed to the Amancaya underground mine due to the decision to temporarily cease operations in that area.
ii. A non-cash impairment of US$8,836 thousand on exploration and evaluation expenditure (FY23: US$3,981 thousand), primarily
due to the impairment on the Jaguelito project and three properties that were part of the acquisition of Revelo Resources Corp.
in 2021. The FY 23 expense was mainly due to the impairment of the Morros Blancos project as a result of the expiry of the option
agreement with CSE-listed Pampa Metals Corporation and the implementation of a rationalisation plan to reduce non-core explo-
ration areas in Chile.
iii. A non-cash impairment of mine properties of US$2,550 thousand (FY 2023-US$nil) due to the temporary stoppage of production
at the Amancaya underground mine. The amount related to exploration and evaluation expenditure that were transferred to mine
properties when the mine started production.
iv. Increase in FY24 administration costs by US$184 thousand to US$6,329 thousand (FY23:US$6,145 thousand) mainly due to higher
staff costs due to severance, partially offset by a decrease in office and utility costs.
v. Decrease in other income by US$873 thousand to US$2,858 thousand (FY23: US$3,731 thousand). FY24 other income was primarily
due to a realised and unrealised gain of US$1,724 thousand (FY23: US$1,033 thousand) from the sale and increase in the value of
equity securities of publicly listed mining companies and US$654 thousand (FY23: US$46 thousand) realised from a gain on sale
of equipment. FY23 other income was primarily due to a US$1,964 thousand gain resulting from the sale of SCRN Properties Ltd.
to Unico and a US$1,012 revaluation of equity securities (note 19 to the financial statements).
vi. Decrease in other expenses by US$520 thousand to US$4,266 thousand (FY23: US$4,786 thousand) mainly due to the following:
a. FY23 Rawhide option agreement and due diligence expenses of US$617 thousand. The takeover option was not exercised.
b. Increase in other costs by US$1,184 thousand to US$1,581 thousand in FY24 (FY23: US$397 thousand) primarily due to the
Group’s decision to terminate the agreement with the Amancaya underground contractor and to terminate an agreement with
another contractor responsible for the maintenance of mining equipment.
Austral Gold Limited
31
Annual Report 2024
vii. Decrease in finance income by US$531 thousand to US$3,753
thousand (FY23: US$4,284 thousand) primarily due to a
US$456 thousand decrease in foreign exchange gains to
US$3,652 thousand (FY23: US$4,108 thousand). Foreign
exchange gains in both fiscal years resulted from the apprecia-
tion of the US dollar versus the Argentine and Chilean curren-
cies.
viii. Increase in finance costs by US$2,151 thousand to US$3,691
thousand (FY23: US$1,540 thousand) was primarily due to
interest expense of US$3,392 thousand (FY23:US$1,395
thousand). The interest expense was higher mainly due to an
increase in the amount of loans and borrowings of the Group
during FY24.
The cost of production (“C1”) per GEO increased to US$1,943 for
FY24, compared to US$1,645 for FY23, while the all-in sustain-
ing cost (“AISC”) per GEO increased to US$2,164 for FY24 from
US$2,004 for FY23. Production in FY24 was lower than FY23, with
higher production costs per GEO in FY24, mainly due to delays by
the Company’s supplier in repairing the HRC 800 equipment used
in the heap leaching production line.
FINANCIAL POSITION(1)
The Group held cash and cash equivalents of US$3,590 thousand
at 31 December 2024 (2023: US$1,261 thousand) or US$4,886
thousand (2023: US$2,803 thousand) when combined with the fair
value of 490 unsold and unrefined gold equivalent ounces in inven-
tory of US$1,296 thousand (2023: 742 unrefined gold equivalent
ounces with a fair value of US$1,542 thousand).
Trade and other receivables (current and non-current) increased by
US$1,291 thousand to US$4,774 thousand at 31 December 2024
(31 December 2023:US$3,483 thousand). The increase was mainly
due to the recognition of US$2,000 thousand of the initial fee due
under the Toll Processing Agreement with ASX-listed Challenger
Gold Limited, received in January 2025 as described in further
detail in note 33. Additionally, during FY24, the Group received the
third cash instalment of US$750 thousand from Unico following the
sale of SCRN Properties Ltd. in 2022, a former subsidiary of the
Group whose major asset was the Pingüino exploration project.
Other financial assets (current and non-current) decreased by
US$2,702 thousand to US$3,383 thousand at 31 at December
2024 (31 December 2023:US$6,085 thousand) mainly due to the
sale of Unico and Revival Gold Inc. (formerly Ensign Minerals Inc.)
shares. At 31 December 2024, the Group’s financial assets primar-
ily consisted of shares and options of Unico.
Inventories decreased by US$995 thousand to US$8,704 thou-
sand at 31 December 2024 (31 December 2023: US$9,699 thou-
sand) mainly due to a decrease in ore stockpiles, mainly at the
Guanaco mine. In addition, gold and bullion in process decreased
as explained in the disclosure above on cash and cash equivalents.
Mine properties decreased by US$4,864 thousand to US$1,395
thousand at 31 December 2024 (31 December 2023: US$6,259
thousand) primarily due to the impairment of US$2,550 as
disclosed above, and a decrease in the provision for reclamation
and rehabilitation at the Guanaco mine.
Property, plant and equipment decreased by US$19,561 thousand
to US$30,055 thousand at 31 December 2024 (31 December
2023: US$49,616 thousand) primarily due to the impairment at the
Amancaya Underground as discussed in Operating and Financial
results of the Group.
Exploration and evaluation expenditure decreased by US$8,435
thousand to US$19,459 thousand at 31 December 2024 (31
December 2023: US$27,894 thousand) mainly due to the impair-
ment of exploration projects described above.
Current trade and other payables decreased by US$7,503 thou-
sand to US$14,783 thousand at 31 December 2024 (31 December
2023: US$22,286 thousand. The reduction in payables was mainly
due to an increase in related party borrowings to repay outstand-
ing payables, a decrease in the value of the Chilean peso versus
the US dollar, minimal operations at the Amancaya underground
mine and fewer exploration activities in 2024. Payables were also
impacted by lower than expected cash flow generated due to lower
than forecasted production, primarily due to a delay in ramping
up production at the Heap Reprocessing Project. This delay was
caused by the Company’s supplier taking longer to repair the HRC
800 equipment used in the heap leaching production line.
Deferred revenue was US$2,000 thousand at 31 December 2024
(US$nil at 31 December 2023). As disclosed in note 33 to the
financial statements, this amount (received in January 2025) shall
be returned to Challenger if the Casposo plant is not ready for
commercial operations on or before July 31, 2025, other than for
delays or any other matters beyond the Company’s control; and/or
the Technical Committee determines, after conducting all relevant
studies and testing, that less than 70% of the Material from the
Hualilan Project processed at the Plant will be recovered;
Net current liabilities decreased by US$17,862 thousand to
US$5,823 (31 December 2023: US$23,685 thousand). The
decrease from 31 December 2023 was mainly due to an increase
in non-current borrowings which enabled the Group to reduce its
trade and other payables. In addition, the Group expects its current
net liability position to continue to improve in FY25 mainly due to
an increase in production at higher margins.
Combined net financial debt (loans, borrowings, lease liabilities
and bank overdraft net of cash and cash equivalents) increased
by US$5,624 thousand to US$23,005 thousand at 31 Decem-
ber 2024 (31 December 2023: US$17,381 thousand). Financial
debt totaled US$26,595 thousand at 31 December 2024, of which
US$6,309 thousand (representing 25% of total financial debt) was
categorised as short-term. The short-term financial debt includes
US$1,606 thousand of US$12,396 thousand of related party loans,
lease liabilities, bank overdraft and the short-term portion of a
2-year and 4-year bank loan.
Net assets decreased by US$27,208 thousand from 31 December
2023 to US$14,365 thousand at 31 December 2024 (31 December
2023: US$41,573 thousand) following the net loss of the year.
Austral Gold Limited
32
Annual Report 2024
CASH FLOW(1)
Operating activities before and after changes in working capi-
tal generated a net cash inflow of US$1,420 thousand (FY23:
US$3,910) and a net cash outflow of US$6,492 thousand (FY23:
inflows of US$8,132), respectively, during FY24. The variation was
primarily due to lower cash generated from operations following a
reduction in production and the repayment of overdue accounts
payable using longer-term debt financing secured during the year.
Net cash provided by investing activities totaled US$5,030 thou-
sand during FY24 (FY23:US$12,425 thousand used in) mainly due
to the following:
• Proceeds of US$4,742 thousand (FY23:US$22 thousand)
primarily from the sale of equity securities described above,
including the sale of 5,458,833 Unico shares to Mr Elsztain, a
director of Austral Gold, the sale of 963,323 Unico shares to Mr
Zang, also a director of Austral Gold, and the sale of 8,139,023
Unico shares to its largest shareholder, Inversiones Financieras
del Sur SA (IFISA), of which Mr. Elsztain and Mr Zang are also
directors and shareholders, for US$2,950 thousand, and the sale
of 6,941,865 Revival Gold Inc. shares for proceeds of US$1,396
thousand.
• Investments of US$434 thousand in FY24 were primarily used
for additions to plant, property and equipment (FY23:US$11,283
thousand including US$5,633 thousand on the Heap Repro-
cessing Project);
• Exploration and evaluation activities of US$928 thousand of
which US$641 were incurred on the Casposo and Manantia-
les district and US$286 thousand on projects in the Guanaco
district (FY23:US$4,614 thousand of which US$2,943 thousand
was incurred on the Jaguelito project and US$917 thousand was
incurred at the Casposo-Manantiales district).
Net cash generated from financing activities totaled US$3,814
thousand during FY24, (FY23: US$4,406). During FY24, the Group
received net proceeds from loans and borrowings of US$7,554
thousand, compared to US$7,178 thousand in FY23.
1. Certain 2023 amounts in the consolidated profit or loss and other comprehensive
income, the consolidated statement of financial position and consolidated
statement of cash flows have been restated as disclosed in note 39 to the financial
statements.
LIQUIDITY AND CAPITAL RESOURCES
Access to capital
The Group maintains strong banking relationships, as demon-
strated by continued financial support. During the year, the
company successfully renewed and extended the maturity profile
of its financial debt, including securing a two-year, US$7,000 thou-
sand loan from a local Argentine bank to refurbish the Casposo
Plant.
Additionally, the Group has benefited from a supportive share-
holder base, which provided debt funding of US$8,516 thousand
as disclosed in more detail in note 27 to the financial statements,
during FY24 as well as purchased a portion of the Group’s equity
investments for US$1,670 thousand. The Group expects both
its banking partners and shareholders to continue their financial
support.
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 in accordance with the business plan
for the 2025-2026 period approved by the Board (the Business
Plan). The Directors have assumed that the Group will have suffi-
cient cash to pay its debts as and when they become payable, for
a period of at least 12 months from the date the financial report
was authorised for issue.
Notwithstanding this view, there remains a material uncertainty as
to whether the Group can continue to operate as a going concern
due to the combined effect of the following uncertainties:
• the Group’s ability to generate cash inflows from operations as
forecast based on the aforementioned gold prices, production
volumes, and cash costs over the forecast period;
• the Group’s ability to repay contractually overdue amounts to its
suppliers whilst also remaining compliant with new contractual
commitments arising from new trade payables associated with
ongoing operations; and
• the timing and amount of proceeds that can be sourced from
the sale of equity investments, if needed.
Further disclosure is provided in Note 3 to the financial statements.
Austral Gold Limited
33
Annual Report 2024
DIRECTORS’
REPORT
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 governance 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
34
Annual Report 2024
Austral Gold Limited
35
Annual Report 2024
Mr. Eduardo Elsztain is Chair of IRSA Inversiones y Repre-
sentaciones S.A. (NYSE:IRS), one of Argentina’s largest and
most diversified real estate companies, comprising shop-
ping centers, premium office buildings, five-star hotels and
residential developments. He also serves as Chair of Cresud
(NASDAQ:CRESY) and BrasilAgro (NYSE:LND), leading Latin
American agricultural companies; and of financial institutions
Banco Hipotecario S.A. (BASE: BHIP) and BACS.
He is member of the World Economic Forum, the Council of the
Americas, the World Jewish Congress and Argentina’s Busi-
ness Association (AEA). He is President of Fundacion IRSA,
which promotes education among children and young people,
and Co-Founder of Endeavor.
Mr. Elsztain was recently appointed as Non-Executive Chair of
ASX-listed Challenger Gold Limited, effective 4 March 2025.
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 after
Mr. Wayne Hubert was appointed Chair.
Re-appointed Chair on 30 May 2023 and on 28 May 2024
THE
DIRECTORS
EDUARDO ELSZTAIN
Chair
Austral Gold Limited
36
Annual Report 2024
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 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
Mr. Zang obtained a law degree from Universidad de Buenos
Aires. He was a founding member of the law firm Zang, Bergel
& Viñes.
Mr. Zang is an adviser and Member of the Board of Directors
of the Buenos Aires Stock Exchange and provides legal advice
to national and international companies.
Mr. Zang currently holds:
i. Vice-Chairships 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
STABRO KASANEVA
Executive Director, Chief Executive Officer
SAUL ZANG
Non-Executive Director
Austral Gold Limited
37
Annual Report 2024
THE
DIRECTORS
Mr. Jarvis is the Managing Director of Six Degrees Investor Rela-
tions, 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, Interna-
tional 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
BEN JARVIS
Non-Executive Director, Member of the Audit Committee
PABLO VERGARA DEL CARRIL
Non-Executive Director, Member of the Audit Committee
Austral Gold Limited
38
Annual Report 2024
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
ROBERT TRZEBSKI
Non-Executive Director, Chair of the Audit Committee
Austral Gold Limited
39
Annual Report 2024
SENIOR
MANAGEMENT
DAVID HWANG
Confidant Partners, Joint Company Secretary
Mr. David Hwang is a Joint Company Secretary of Austral Gold. Mr
Hwang is a corporate lawyer, company secretary and advisor to Boards
and management of ASX listed entities. Mr Hwang is the Managing Direc-
tor of Confidant Partners, which provides ASX compliance, corporate
legal, company secretarial and Board advisory services. Previously, Mr.
Hwang was a senior executive at a leading integrated technology solu-
tions and professional services provider, where he led Australia’s largest
outsourced company secretarial and legal team.
Joint Company Secretary since 3 July 2024
JOSÉ BORDOGNA
Chief Financial Officer and Joint Company Secretary
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 account-
ing activities, 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 Univer-
sity of Sydney). He is also CFA charter holder.
Prior to joining Austral Gold, he worked for the International Finance Corpora-
tion (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
Austral Gold Limited
40
Annual Report 2024
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
A
B
A
B
Pablo Vergara del Carril
4
4
3
4
Robert Trzebski
4
4
4
4
Eduardo Elsztain
4
4
N/A
N/A
Saul Zang
4
4
N/A
N/A
Stabro Kasaneva
4
4
N/A
N/A
Ben Jarvis
4
4
4
4
A: Number of meetings attended
B: Number of meetings held during the time the Director held office during the
financial year
SHARES AND OPTIONS
At the date of this report there are no options over the Company’s
ordinary shares.
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).
INDEMNITY AND INSURANCE OF AUDITOR
• The Company has not, during or since the end of the financial
year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by
the auditor.
• During the financial year, the 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.
At the most recent Annual General Meeting of the Company held
on 28 May 2024, 82.58% of votes cast at the meeting were in
favour of the adoption of the Remuneration Report.
Remuneration information for KMP is reported in US Dollars (US$).
All contractual arrangements for non-executive Directors and the
Chair are denominated in US Dollars. The contractual arrange-
ments 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 direc-
tors.
Total KMP remuneration was US$1,257,389 in FY24 (US$1,616,011
in FY23). Senior Executives KMP have not received any cash
bonus performance payments which they are entitled to for FY24,
FY23 and FY22. Additionally, the director fees for of non-executive
directors Mr. Elsztain for the years FY21-FY24, and Mr. Zang for
part of FY21 and for the years FY22-FY24, and Mr. Vergara del
Carril for part of FY23 and FY24 also remain unpaid.
Austral Gold Limited
41
Annual Report 2024
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
• 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 (no longer a KMP effective 1 July 2024)1
• José Bordogna
Chief Financial Officer
Remuneration of KMP
The Group has employment agreements with all KMP executives 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 2024” 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.
12 months ended
31 December
2020
12 months ended
30 June
2021
12 months ended
31 December
2022
12 months ended
31 December
2023
12 months ended
31 December
2024
Sales Revenue
(US$’000)
88,223
64,390
49,710
47,729
36,790
Profit/(loss) before
tax (US$’000)
14,335
(4,686)
(9,581)
(7,951)
(32,209)
Basic EPS
(US cents
per share)
1.36
(1.20)
(1.35)
(1.18)
(4.42)
Diluted EPS
(US cents
per share)
1.34
(1.20)
(1.35)
(1.18)
(4.42)
Share price (cents
AUD/CDN)
21.0/22.0
8.5/8.0
3.9/3.5
2.9/3.0
2.2/2.5
Dividend (AUD
per share)
0.009
0.008
-
-
-
1. Change in Key Management Personnel (KMP) Classification: During the first half of 2024, Mr. Ramirez was classified as a KMP, primarily managing the Amancaya
underground operations. With the gradual reduction and outsourcing of these activities and the completion of the Heap Reprocessing Project’s construction phase, the
responsibility for ongoing production oversight transitioned to the CEO, resulting in Mr. Ramirez no longer being classified as a KMP effective 1 July 2024.
Austral Gold Limited
42
Annual Report 2024
Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each Director of the Group and each of the Senior
Executive KMP of the Group during the financial year were:
Twelve month period ended 31 December 2024
Primary
Post-employment
Share-based
Total
Cash and
accrued
Salary and
Fees
US$
Accrued
Cash
Bonus
US$2
Non-
monetary
benefits
US$4
Super-
annuation
US$
Retirement/
Termination
benefits
US$
Other
long-term
benefits
Equity
settled
Shares
US$
Options
US$
US$
Directors
Non-executive directors
E Elsztain6
100,000
-
-
-
-
-
-
-
100,000
S Zang6
50,000
-
-
-
-
-
-
-
50,000
R Trzebski
44,942
-
3,695
5,058
-
-
-
-
53,695
B Jarvis
44,942
-
-
5,058
-
-
-
-
50,000
P Vergara del
Carril6
50,000
-
-
-
-
-
-
-
50,000
Total non-
executive
director
remuneration
289,884
-
3,695
10,116
-
-
-
-
303,695
Executive Director
S Kasaneva2
356,893
87,062
7,905
-
-
-
-
-
451,860
Total Director
remuneration
646,777
87,062
11,600
10,116
-
-
-
-
755,555
Other Key Executives
R. Ramirez2,3
143,167
34,469
14,556
-
-
-
-
-
192,192
J. Bordogna2,5
228,162
52,521
4,231
18,960
-
5,463
-
-
309,337
Total other
executive
remuneration
371,329
86,990
18,787
18,960
-
5,463
-
-
501,529
Total director
and executive
officer
remuneration
1,018,106
174,052
30,787
29,076
-
5,463
-
-
1,257,389
1. All salaries are paid in local currency and converted to USD using the historical spot foreign exchange (FX) rate. Accrued bonuses and Termination/Retirement benefits are
converted to USD using the FX rate in effect on 31 December 2024.
2. No accrued cash bonus was paid to the other Senior Executive KMP as of the date of this report.
3. The table includes remuneration paid and benefits accrued to Mr Ramirez while a KMP from 1 January 2024 - 30 June 2024. During the first half of 2024, Mr. Ramirez was
classified as a KMP, primarily managing the Amancaya underground operations. With the gradual reduction and outsourcing of these activities and the completion of the
Heap Reprocessing Project’s construction phase, the responsibility for ongoing production oversight transitioned to the CEO, resulting in Mr. Ramirez no longer being
classified as a KMP effective 1 July 2024.
4. Non-monetary benefits include annual leave, health and benefit premiums, professional membership dues and parking.
5. Mr. Bordogna is entitled to long service leave (LSL) in accordance with statutory regulations and its employment agreement, having been employed by the Group since March
2013. During FY24, US$5,463 was charged to LSL. As of 31 December 2024, the LSL amounts to A$69,095 (US$45,610).
6. The 2024 director fees were not paid to Mr. Elsztain, Mr. Zang and Mr. Vergara del Carril, and the accrued cash bonuses had not been paid as of the date of this report.
Austral Gold Limited
43
Annual Report 2024
Twelve month period ended 31 December 2023
Primary
Post-employment
Share-based
Total
Cash and
accrued
Salary and
Fees
US$
Accrued
Cash
Bonus
US$
Non-
monetary
benefits
US$4
Superannuation
US$
Retirement/
Termination
benefits
US$
Equity
settled
Shares
US$
Options
US$
US$
Directors
Non-executive directors
E Elsztain
100,000
-
-
-
-
-
-
100,000
S Zang
50,000
-
-
-
-
-
-
50,000
R Trzebski
45,147
-
4,298
4,853
-
-
-
54,298
B Jarvis
45,147
-
-
4,853
-
-
-
50,000
P Vergara del Carril
50,000
-
-
-
-
-
-
50,000
Total non-
executive director
remuneration
290,294
-
4,298
9,706
-
-
-
304,298
Executive Director
W Hubert
-
-
-
-
-
-
-
-
S Kasaneva
387,500
93,001
7,656
-
-
-
-
488,157
Total Director
remuneration
677,794
93,001
11,954
9,706
-
-
-
792,455
Other Key Executives
R. Ramirez
311,281
75,197
3,889
-
-
-
-
390,367
R Guerra3
34,002
11,859
623
-
71,762
-
-
118,246
J Bordogna
220,971
57,784
18,512
17,676
-
-
-
314,943
Total other
executive
remuneration
566,254
144,840
23,024
17,676
71,762
-
-
823,556
Total director and
executive officer
remuneration
1,244,048
237,841
34,978
27,382
71,762
-
-
1,616,011
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 using the historical spot foreign exchange (FX) rate. Accrued bonuses and Termination/Retirement benefits are
converted to USD using the FX rate in effect on 31 December 2023.
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. Non-monetary benefits include annual leave, health and benefit premiums, professional membership dues and parking
Austral Gold Limited
44
Annual Report 2024
Contractual Arrangement with Executive KMP during 2024
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
Open
1 month
Base salary is paid in
Chilean pesos with no
FX adjustment clause
0% to 100%
of salary
At the discretion of the
Board based on Group
results and individual
performance
One month
salary per year of
employment
Rodrigo Ramirez
VP of Operations
Open
1 month
Base salary is paid in
Chilean pesos with no
FX adjustment clause
0% to 100%
of salary
At the discretion of
the Chief Executive
Officer based on Group
results and individual
performance
One month
salary per year of
employment
Jose Bordogna
Chief Financial
Officer
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 Chief Executive
Officer based on Group
results and individual
performance
One month
salary per year of
employment
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
Fixed remuneration
At risk — short-term incentive
At risk — long-term incentive
December 2024
December 2023
December 2024
December 2023
December 2024
December 2023
Executive Directors
Stabro Kasaneva
80%
81%
20%
19%
0%
0%
Executive Officers
Rodrigo Ramirez
82%
81%
18%
19%
0%
0%
Raul Guerra
N/A
29%
N/A
71%
N/A
0%
Jose Bordogna
83%
82%
17%
18%
0%
0%
Non-executive KMPs are not considered in this table as they would have 100% fixed remuneration.
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 2024
Granted as
remuneration
Market
purchases
Number
of ordinary
shares at time
of retirement/
resignation
Balance at 31
December 2024
Eduardo Elsztain
461,294,560
-
21,574
-
461,316,134
Saul Zang
1,640,763
-
-
-
1,640,763
Pablo Vergara
68,119
-
-
-
68,119
Robert Trzebski
-
-
-
-
-
Ben Jarvis
600,000
-
-
-
600,000
Stabro Kasaneva
7,881,230
-
-
-
7,881,230
Rodrigo Ramirez
279,514
-
-
-
N/A1
Jose Bordogna
126,495
-
-
-
126,495
Total
471,890,681
-
-
-
471,632,741
1. No longer a KMP
Austral Gold Limited
45
Annual Report 2024
Other transactions with KMP
On 25 June 2024, the Company sold 5,458,833 previously issued common shares of Unico
(“Unico Shares”) to Mr. Elsztain and 963,323 Unico Shares to Mr. Zang, at a price per
Unico Share of A$0.16 per share. Total proceeds from the transaction was US$682,393.
On 25 July 2024, the Company entered into an agreement to sell an additional 8,139,023
Unico Silver shares to its largest shareholder, Inversiones Financieras del Sur SA (IFISA).
Two board members, Eduardo Elsztain and Saul Zang are also shareholders and direc-
tors of IFISA. The sale was completed on 2 August 2024 for proceeds of US$987,869.
Zang, Bergel & Viñes Abogados is a related party since one non-executive Director, Pablo
Vergara del Carril has significant influence over this law firm based in Buenos Aires, Argen-
tina. Fees charged and expenses to reimbursement to the Group for the year ended 31
December 2024 amounted to US$75,224 (2023: US$80,922). As at 31 December 2024,
the Group owed ZBV US$41,508 (31 December 2023-US$5,990).
During the year ended 31 December 2024, the Group received unsecured related party
loans totaling US$8,516,397 (31 December 2023-US$4,555,000). Including accrued
interest, the total amount owed at 31 December 2024 is US$12,396,018. (31 December
2023-US$4,716,790).
This concludes the remuneration report, which has been audited.
Austral Gold Limited
46
Annual Report 2024
Principal activities
The principal activities of the Group during FY24 were:
• Produced 15,573 gold equivalent ounces at the Group’s
Guanaco/Amancaya mine complex, integrating agitation and
heap leaching processes, with gradual contributions from the
new Heap Reprocessing Project that was launched in 2023,
partially offsetting the depletion in production at the Amancaya
underground mine
• HRC equipment, used in the Heap Reprocessing Project
launched in 2023, was returned to Guanaco in Q4 2024 after
prolonged repair delays from the supplier since Q1 2024
• Issued an updated Mineral Resource Estimate for the Compa-
ny’s 100% owned Casposo-Manantiales mine complex,
prepared by an independent Qualified Person in accordance
with NI 43-101 and JORC (2012)
• Executed a Toll Treatment Agreement with ASX-listed Chal-
lenger Gold Limited (“Challenger”) to process mineralised mate-
rial from Challenger’s Hualilan project at Casposo’s Plant, in San
Juan, Argentina
• Renewed all existing loan facilities and secured additional
financing from banks and related parties, enhancing the Compa-
ny’s financial debt maturity profile. This included a 2-year loan of
up to US$7,000 thousand loan to refurbish the Casposo’s Plant
• Significant improvement of liquidity indicators, decreasing net
current liabilities from US$23,685 thousand on 31 December
2023 to US$5,823 thousand on 31 December 31, 2024
• Realised gains from the sale of equity investments in ASX and
TSXV publicly listed mining companies, while maintaining a 5.2%
interest in ASX-listed company Unico Silver Limited (“Unico”)
Objectives
The group’s key objectives for 2025 are to:
• Achieve or exceed the production forecast of 18,000-20,000
gold equivalent ounces from the Guanaco operations,
• Enhance profitability margins to strengthen cash flow generation
and further reduce debt, and
• Complete the refurbishment of the Casposo Plant in line with the
Toll Agreement executed with ASX-listed Challenger Gold Limited
Events subsequent to reporting date
On 3 January 2025, the Group received US$2,000 thousand
in accordance with the Toll Treatment Agreement entered into
between the Group’s subsidiary Casposo Argentina Mining Ltd.
and Challenger Gold Limited. (note 33)
On 28 February 2025, the Group amended a loan agreement with
IFISA to transfer the liability to two KMPs.
On 14 March 2025, the Group received the second installment
of US$2,500 thousand under the loan agreement from Bank San
Juan to refurbish the Casposo plant.
Likely developments
The Group will continue to pursue its objectives for 2025.
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. 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 2024 (2023: Nil).
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 2024 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 2025 objectives.
Material risks related to the achievement of 2025 objectives
The achievement of the Group’s 2025 objectives is subject to the
following material risks, including:
• Operational risks: Uncertainty in achieving the production
forecast due to potential equipment failures and lower than
expected recovery rates.
• Financial risks: Commodity prices set by the market and
currency fluctuations in the countries where the Group operates.
• Project execution risks: Delays or cost overruns in the refur-
bishment of the Casposo Plant, which could affect commit-
ments under the Toll Agreement with Challenger Gold and result
in financial consequences.
For and on behalf of the board
Robert Trzebski
Director
28 March 2025
Austral Gold Limited
47
Annual Report 2024
MINE
COMPLEXES
BACKGROUND
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 perva-
sively 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 propy-
litic alteration. In the Cachinalito vein system, most
of the gold mineralisation is concentrated between
depths of 75m and 200m and is contained in hori-
zontally elongated mineralised shoots. The altera-
tion pattern and the mineralogical composition of the
Guanaco mineralisation have led to the classification
as a high-sulfidation epithermal 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 construc-
tion 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 deliv-
ered 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.
GUANACO AND
AMANCAYA
Austral Gold Limited
48
Annual Report 2024
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.
In Q4 2024, the Company decided to
temporarily cease operations at Amancaya.
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
49
Annual Report 2024
GUANACO &
AMANCAYA MINE
COMPLEX
1
Strategic location (220km from Antofagasta,
Chile) with + 50K hectares of mining property
2
Guanaco, high-sulphidation epithermal deposit,
and Amancaya a low sulphidation epithermal deposit,
both hosted in the Paleocene/Eocene Belt
3
1,500 tpd milling circuit to agitation leaching
and Merrill-Crowe processing plant
+3,000 tpd crushing, heap leaching, and CC
circuit processing plant
4
Austral Gold historical production of
+ 500K gold-equivalent ounces since 2010
5
Completed construction of Heap Reprocessing
Project in 2023
Austral Gold Limited
50
Annual Report 2024
Austral Gold Limited
51
Annual Report 2024
MINE
COMPLEXES
BACKGROUND
OVERVIEW
The Casposo mine is in the department of Calin-
gasta, San Juan Province, Argentina, approximately
150km from the city of San Juan, and covers an area
of 100.21km2. Casposo is a low sulfidation 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-Argen-
tine border for approximately 1,500km. The Casposo
gold– silver mineralisation is Permian in age, and
occurs in the extensive Permo-Triassic volcanic 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. Mineralisation 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, geophys-
ics and drillings), and completed a regional mapping
at a 1:10,000 scale to identify potential opportunities
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 effectively acquired the remaining 30%.
The Manantiales project is located immediately to the
west and adjacent to Casposo. Exploration rights and
an option for exploitation 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 mainte-
nance during the June 2019 quarter and exploration
activities that commenced during the December 2019
quarter have been ongoing with the goal of recom-
mencing processing operations.
CASPOSO
MANANTIALES
Austral Gold Limited
52
Annual Report 2024
In 2004, Austral engaged an indepen-
dent Qualified Person in accordance with
NI 43-101 and JORC (2012) to prepare
a Mineral Resource Estimate (MRE) for
the Company’s 100% owned Casposo-
Manantiales mine complex Casposo and
Manantiales. The report was completed
and announced on 17 July 2024.
Additionally, the Group executed a Toll
Treatment Agreement with ASX-listed
Challenger Gold Limited (“Challenger”) to
process mineralised material from Chal-
lenger’s Hualilan project at Casposo’s
Plant, in San Juan, Argentina, and obtained
a 2-year loan of up to US$7,000 thousand
loan to refurbish the Casposo’s Plant. The
first tranche of US$1,500 thousand was
received in December 2024.
Austral Gold Limited
53
Annual Report 2024
CASPOSO
MANANTIALES
MINE COMPLEX
1
On Care & Maintenance since 2019 with the strategic
objective to restart activities during the second half
of 2025
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
6
Executed a Toll Treatment Agreement with ASX listed
Challenger Gold Limited (“Challenger”) to process
mineralised material from Challenger’s Hualilan project
at Casposo’s Plant, in San Juan, Argentina
Austral Gold Limited
54
Annual Report 2024
Austral Gold Limited
55
Annual Report 2024
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
EXPLORATION
Austral Gold Limited
56
Annual Report 2024
EXPLORATION
IN ARGENTINA
CASPOSO-MANANTIALES PROJECT, ARGENTINA
During FY24, the Group’s exploration activities focused on key
priorities. Specifically, efforts were directed towards reviewing and
interpreting target areas within the Casposo-Manantiales Mine
Complex. These activities included mapping and collecting rock
chip samples from the Cerro Amarillo target, as well as geologi-
cal mapping and geochemical analysis of the Cerro Amarillo and
Casposo properties. The review of previous geophysics studies at
Cerro Amarillo validated the concept of a significant fault system
and shallow mineralisation models. Geological mapping continued
in the district, consolidating two main mineralisation systems and
advancing towards an integrated exploration map. In the Manrique
Area, geochemical results revealed limited anomalies, with no
significant gold findings. However, our analysis indicates that veins
and textures provide encouraging evidence of a blind or deeper low
sulphidation epithermal system in the area.
Additionally, geological mapping at 1:5,000 scale was completed in
key sectors, including Vetas Blancas and SE Casposo. Preliminary
interpretations of the Casposo-Cerro Amarillo map identified a
potential exit zone for the Casposo Dacite unit, marking a barrier to
mineralisation. Mapping of the East Block continued with no signifi-
cant hydrothermalism observed. Updated mapping at Manantiales
clarified mineralisation controls.
In the Manantiales District (Cerro Amarillo), remapping of the Cerro
Amarillo - Vetas Blancas target and the SE Casposo block was
completed. Vetas Blancas is possibly controlled by the boundary
of two rhyolitic domes, with the eastern one being more preserved
and surrounded by a ring of tuffs. Like those previously identified
in Cerro Amarillo, outcrops of rhyolitic domes have been discov-
ered. These rhyolites show minimal alteration and have scarce
centimetric N-S veinlets composed of light and dark grey saccha-
roidal Silica-Carbonate. The rhyolitic domes exhibit a northeast
alignment, suggesting they may be injected when intersecting
with N S structures. Another key aspect of this sector is the small
outcrops of Dacita Casposo, which are unconformably situated in
the andesitic tuffaceous sequence. At the Casposo SE Sector, a
thrust puts the basement of the La Puerta Formation (characterised
by metapelites, sandstones, and conglomerates) in contact with the
Dacita Casposo. The Casposo Dacite presents facies variations
that include autobreccias, porphyritic, and mostly laminated. The
rhyolitic component is predominant in the mapped area’s southern
sector. The alterations in the dacite are widespread, illite in the
matrix, smectite/illite in plagioclase, and the presence of epidote
(propylitic alteration) is common at the highest levels. There appears
to be SE continuity of Inca as the two float samples aligned in the
Inca corridor exhibited low gold anomalies. Although this sector
experiences a strong glacial drag, the alignment of these samples
indicates that beneath the cover, and at a relatively shallow depth
due to the uplifted block, mineralised veins may be present.
SIERRA BLANCA, ARGENTINA
In FY24, no major activities were conducted in Sierra Blanca as
the Group sold its interest in Sierra Blanca SA that owns the Sierra
Blanca exploration project in Santa Cruz Argentina.
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
EXPLORATION
IN ARGENTINA
Austral Gold Limited
57
Annual Report 2024
EXPLORATION
IN CHILE
GUANACO-AMANCAYA
MINE COMPLEX, CHILE
In FY24, the main exploration activities were as follows:
PALEOCENE BELT, CHILE:
GUANACO-AMANCAYA MINE COMPLEX
Dumbo Area:
During FY24, the Group, continued historical drillhole re-logging
and interpretation of sections to explore additional opportuni-
ties for exploitation. This involved reinterpreting gold and copper
mineralisation and understanding the lithological and structural
controls beneath the recognised open pit and underground (UG)
limits at the Dumbo, Defensa, and Perseverancia sectors. The
reinterpretation of geological sections showed increased hydro-
thermal alteration towards the west, with potential exploration
targets identified south of the Dumbo fault. Favourable lithological
units and fault structures indicate potential high mineralisation in
certain sectors.
Austral Gold Limited
58
Annual Report 2024
Figure: Guanaco District, Chile
GUANACO MINE
Exploring within the mine footprint
to increase production and LOM
The structural and lithology models for the Dumbo Cluster were
updated, generating a new geological model. This is essential for
understanding the different behaviours of ledges and mineralisa-
tion across various lithological units, providing a foundation for
more precise geological domains. A ledge model has also been
developed to identify the main structures and the control of the
higher gold and copper grades, combining section-by-section
mapping with historical data. The alteration model (silica + alunite
– illite) has been updated based on recent interpretations of key
sections. These updates are intended to better align the alteration
envelope with ledge geometry for greater coherence.
Geologists, in collaboration with a third-party consultant, contin-
ued to refine the Dumbo cluster model by integrating historical data
and updating interpretations. The objective is to understand the
gold and copper distribution and controls and define geological
domains for a resource model.
Cerro Guanaquito: A new exploration strategy for Cerro Guana-
quito is focused on disseminated mineralisation, with the goal of
obtaining low-grade and high-tonnage bulk ore suitable for open-
pit mining with minimal copper content to avoid impacting the
metallurgical processes. Historical drill results, various which show
various types of mineralisation, including ledges and dissemina-
tion, has influenced current exploration plans.
Austral Gold Limited
59
Annual Report 2024
MINING
INVESTMENTS
BUILDING AN EQUITY PORTFOLIO OF MINING COMPANIES
Austral Gold Limited
60
Annual Report 2024
EQUITY
INVESTMENTS
UNICO SILVER
DESEADO MASSIFF, SANTA CRUZ, ARGENTINA 5.2% 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
Name
Holding
Type
Projects Location
Flagship
Project
Unico Silver Ltd
ASX Listed
5.2%
Exploration
Argentina
Cerro Leon Project
Rawhide
Acquisition
Holdings LLC1
Private
24.7%
Restructuring1
USA
Rawhide Mine
1. Owns Rawhide Mining LLC. On 20 December 2023 (the “Petition Date”) Rawhide Mining LLC, which owns the Rawhide mine, filed
a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The petition was dismissed in 2024 and
Rawhide Mining LLC is not currently operating the mine.
Austral Gold Limited
61
Annual Report 2024
FINANCIAL
STATEMENTS
Austral Gold Limited
62
Annual Report 2024
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
All figures are reported in thousands of US$
For the year ended 31 December
Note
2024
2023
Sales revenue
16
36,790
47,729
Cost of sales (including depreciation and amortisation)
6
(33,233)
(47,183)
Gross profit
3,557
546
Other income
7
2,858
3,731
Other expenses
8
(4,266)
(4,786)
Impairment loss on mine properties
21
(2,550)
-
Impairment loss on property plant and equipment
22
(16,705)
-
Impairment loss on exploration and evaluation expenditure
23
(8,836)
(3,981)
Administration expenses
9
(6,329)
(6,145)
Finance income
10
3,753
4,284
Finance costs
11
(3,691)
(1,540)
Share of loss of associates
-
(60)
(Loss) before income tax
(32,209)
(7,951)
Income tax benefit
14
5,135
708
(Loss) for the year after income tax expense
(27,074)
(7,243)
(Loss) attributable to:
Owners of the Company
(27,068)
(7,229)
Non-controlling interests
(6)
(14)
(27,074)
(7,243)
Other comprehensive income
Items that may not be classified subsequently to profit or loss
Foreign currency translation
52
1
Total comprehensive (loss) for the year
(27,022)
(7,242)
Comprehensive (loss) attributable to:
Owners of the Company
(27,016)
(7,228)
Non-controlling interests
(6)
(14)
(27,022)
(7,242)
(Loss) per share (cents per share):
Basic (loss) per share
15
(4.42)
(1.18)
Diluted (loss) per share
15
(4.42)
(1.18)
The notes on pages (67) to (103) are an integral part of these consolidated financial statements.
Austral Gold Limited
63
Annual Report 2024
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
All figures are reported in thousands of US$
As at 31 December
Note
2024
2023
Assets
Current assets
Cash and cash equivalents
17
3,590
1,261
Trade and other receivables
18
4,427
2,356
Prepaid income tax
73
83
Other financial assets
19
3,383
3,958
Inventories
20
8,704
9,699
Total current assets
20,177
17,357
Non-current assets
Other receivables
18
347
1,127
Prepaid income tax
140
126
Other financial assets
19
-
2,127
Mine properties
21
1,395
6,259
Property, plant and equipment
22
30,055
49,616
Exploration and evaluation expenditure
23
19,459
27,894
Deferred tax asset
14
1,517
-
Total non-current assets
52,913
87,149
Total assets
73,090
104,506
Liabilities
Current liabilities
Bank overdraft
17
199
222
Trade and other payables
14,783
22,286
Supply chain financing arrangement
24
-
835
Employee entitlements
2,908
2,990
Loans and borrowings
27
5,433
13,540
Deferred revenue
33
2,000
-
Lease liabilities
22
677
1,169
Total current liabilities
26,000
41,042
Non-current liabilities
Trade and other payables
-
3
Provisions for reclamation and rehabilitation
26
11,566
13,695
Loans and borrowings
27
19,901
2,568
Lease liabilities
22
385
1,143
Employee entitlements
27
18
Deferred tax liability
14
846
4,464
Total non-current liabilities
32,725
21,891
Total liabilities
58,725
62,933
Net assets
14,365
41,573
Equity
Issued capital
28
109,114
109,114
Accumulated losses
29
(93,658)
(66,549)
Reserves
30
(1,091)
(1,157)
Non-controlling interest
31
-
165
Total equity
14,365
41,573
The notes on pages (67) to (103) are an integral part of these consolidated financial statements.
Austral Gold Limited
64
Annual Report 2024
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the years ended 31 December 2024 and 2023
All figures are reported
in thousands of US$
Note
Issued
capital
Accumulated
losses
Reserves
Non-
controlling
interest
Total
Balance at 31 December 2022
109,114
(59,320)
(1,158)
179
48,815
Loss for the year
-
(7,229)
-
(14)
(7,243)
Foreign exchange movements from
translation of financial statements to US$
-
-
1
-
1
Total comprehensive income/ (loss)
-
(7,229)
1
(14)
(7,242)
Balance at 31 December 2023
109,114
(66,549)
(1,157)
165
41,573
Loss for the year
-
(27,068)
-
(6)
(27,074)
Foreign exchange movements from
translation of financial statements to US$
-
(14)
66
-
52
Total comprehensive income/ (loss)
(27,082)
66
(6)
(27,022)
Decrease in Sierra Blanca investment
-
(27)
-
27
-
Sale of Sierra Blanca investment
31
-
-
-
(186)
(186)
Balance at 31 December 2024
109,114
(93,658)
(1,091)
-
14,365
The notes on pages (67) to (103) are an integral part of these consolidated financial statements.
Austral Gold Limited
65
Annual Report 2024
AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
All figures are reported in thousands of US$
For the year ended 31 December
Note
2024
2023
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
1,039
926
Cash and cash equivalents at the end of the year
17
3,391
1,039
Net increase in cash and cash equivalents
2,352
113
Cash Flows from operating activities
Loss after income tax
(27,074)
(7,243)
Adjustments for
Income tax benefit recognized in loss
(5,135)
(708)
Impairment of mine properties
21
2,550
-
Impairment of exploration and evaluation expenditure
23
8,836
3,981
Impairment of property, plant and equipment
22
16,705
-
Depreciation and amortisation
6/8/9
3,272
6,048
Gain on sale of equipment
7
(654)
(46)
Gain on sale of subsidiary
7
(91)
(1,964)
Gain on sale of financial assets
7
(939)
(21)
Exclusivity fee on option agreement
7
-
(100)
Net finance charges
11
3,392
1,395
Gain from foreign exchange
(182)
-
Loss from foreign exchange
-
319
Provision for reclamation and rehabilitation
(48)
126
Allowance for doubtful accounts
37
(107)
Inventory write-down
307
302
Non-cash employee entitlements
1,271
960
Share of loss of associates
-
60
Loss in fair value of other financial assets
8
-
992
Gain in fair value of other financial assets
7
(785)
(1,012)
Net cash generated from operating activities before change in assets and liabilities
1,462
2,982
Income tax refunds
(42)
928
Net cash generated from operating activities before changes in assets and liabilities
1,420
3,910
Changes in working capital
Decrease / (increase) in inventory
688
(1,055)
Decrease in trade and other receivables
(76)
1,519
(Decrease) /increase in trade and other payables
(6,345)
4,963
(Decrease) / increase in supply chain financing arrangement
(835)
835
(Decrease) in employee entitlements
(1,344)
(2,040)
Net cash used in / generated from operating activities
(6,492)
8,132
Cash flows from investing activities
Additions to property, plant and equipment
22
(434)
(11,283)
Proceeds from sale of subsidiary
13
750
3,250
Proceeds from sale of equipment
958
113
Proceeds from exclusivity fee on option agreement
-
100
Payment for investment in exploration and evaluation
(928)
(4,614)
Payment for investment in mine properties
21
(58)
(9)
Payment for other financial assets
-
(4)
Proceeds from sale of other financial assets
19
4,742
22
Net cash generated from /used in investing activities
5,030
(12,425)
Cash flows from financing activities
Restricted proceeds from convertible note offering
-
591
Proceeds from loans and borrowings
19,999
17,955
Repayment of loans and borrowings
(12,445)
(10,777)
Interest paid on loans and borrowings
(1,495)
(720)
Repayment of lease liabilities
(1,135)
(2,252)
Interest paid on leases
(184)
(186)
Other Interest paid
(926)
(205)
Net cash generated from financing activities
3,814
4,406
Net increase in cash and cash equivalents
2,352
113
The notes on pages (67) to (103) are an integral part of these consolidated financial statements.
Austral Gold Limited
66
Annual Report 2024
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 2024 comprise
the Company and its subsidiaries (together referred to as the “Group”). The Group is a for-profit entity and 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 2024 are available
upon request from the Company’s registered office at Level 5, 137-139 Bathurst Street, Sydney NSW 2000, Australia at
www.australgold.com.
2. BASIS OF PREPARATION
The consolidated financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards adopted by the Australian Accounting Standards Board (‘AASB’) and the Corpo-
rations Act 2001. The consolidated financial statements also comply with International Financial Reporting Standards
adopted by the International Accounting Standards Board. They were authorized for issue by the Company’s Board of
Directors on 28 March 2025.
Details of the Group’s accounting policies, including changes thereto, are included in Note 39.
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 that instrument, amounts in the consolidated financial statements and directors’ report
have been rounded off to the nearest thousand dollars, unless otherwise stated.
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 35.
3. GOING CONCERN
For the year ended 31 December 2024, the Group reported a gross profit of US$3,557 thousand (year ended 31 Decem-
ber 2023:US$546 thousand) and a net loss after tax of US$27,074 thousand (year ended 31 December 2023 US$7,243
thousand). Operating and working capital activities generated a net cash outflow of US$6,492 thousand (year ended
31 December 2023 inflows of US$8,132 thousand). Net cash inflows from investing activities were US$5,030 thousand
(year ended 31 December 2023: outflow of US$12,425 thousand), while financing activities resulted in net cash inflows of
US$3,814 thousand (year ended 31 December 2023: US$4,406 thousand). As at 31 December 2024, the Group had net
assets of US$14,365 thousand and net current liabilities of US$5,823 thousand (31 December 2023: US$41,573 thousand
and US$23,685 thousand, respectively).
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 in accordance with the
business plan approved by the Board (the Business Plan), for the 18 month period from 31December 2024 (the Relevant
Period).
The Directors have assumed that the Group will have sufficient cash to pay its debts as and when they become payable,
for a period of at least 12 months from the date the financial report was authorised for issue. In forming this view, the Direc-
tors have based their assessment on the following facts and circumstances and the Business Plan, having regard to the
associated uncertainties:
• The production guidance for FY25 (12 months) is estimated to range between 18,000 and 20,000 gold equivalent ounces
(GEOs) while the Business Plan (18 months) for the going concern analysis estimates production of 25,018 GEOs for
the Relevant Period. This is expected to be achieved through the integration of agitation leaching and heap leaching
processes, using material from the Heaps and remaining ore from the Guanaco mine. Actual production for FY24 was
15,573 GEOs.
• The Business Plan (18 months) estimates cash costs (C1) per GEO of US$1,489-US$2,651 (average C1: US$1,737),
with All-in-Sustaining Cost (AISC) ranging from US$1,798 to US$2,925 (average AISC: US$1,998). Actual Average C1
for FY24 was 1,943 per GEO.
• The Business Plan (18 months) also assumes average prices realised per GEO of US$2,844.
• Obtaining additional loan and borrowings and other forms of assistance from related parties as required by the Group.
Mr Elsztain, Mr Zang, and their related entities Inversiones Fiancieras 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
67
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
• With respect to the refurbish and commercial startup of the Casposo plant the business plan assumes:
– The costs to refurbish and commercially setup the plant will be fully funded by the US$7,000 thousand secured loan
obtained from Banco San Juan S.A in December 2024;
– The Company will comply with the contractually agreed conditions related to the US$2,000 thousand initial fee paid
by Challenger Gold Limited in January 2025 under the Toll Treatment Agreement signed on 5 December 2024 and
thereby, the initial fee is not expected to be returned to the counterparty; and
– The Casposo plant will gradually commence production in August 2025. The Business Plan (18 months) estimates
total cash generation of US$9,376 thousand, with US$3,371 thousand generated in calendar year 2025.
• At 31 December 2024, of the total US$14,783 thousand trade and other payables disclosed in note 24 of the 31
December 2024 financial statements, approximately US$2,724 thousand was contractually overdue, a reduction from
US$7,500 thousand at 30 June 2024. As disclosed in the 31 December 2023 financial report, the Group entered into
extended payment terms with suppliers of the Guanaco-Amancaya mine complex in Chile. During the year ended 31
December 2024, trade and accounts payable and supply chain financing arrangement decreased by US$8,338 thou-
sand, as a result of repayments made using funds sourced financing activities and the sale of equity investments. The
Board’s strategy assumes that the Group will continue to negotiate extended payment terms, or alternatively repay
these contractually overdue amounts to its suppliers through a combination of cash collected from outstanding trade
and other receivables, the sale of inventory, the sale of non-core assets and equity investments, and the draw down
of cash proceeds from unsecured credit facilities.
• The cashflow assumptions underpinning the Business Plan have modelled a potential cash inflow of US$1,366 thou-
sand from the sale of equity investments. The Directors also considered alternative sources of funding not currently
modelled within the cashflow assumptions, including the potential sale of non-core assets.
Based on the above, the Directors are of the view that the Group will be able to continue as a going concern and will
therefore realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in the
financial report. Notwithstanding this view, there remains a material uncertainty as to whether the Group can continue
to operate as a going concern due to the combined effect of the following uncertainties:
• the Group’s ability to generate cash inflows from operations as forecast based on the aforementioned gold prices,
production volumes, and cash costs over the forecast period;
• the Group’s ability to repay contractually overdue amounts to its suppliers whilst also remaining compliant with new
contractual commitments arising from new trade payables associated with ongoing operations;
• the Group’s ability to repay or replace the existing external and related party loans on or before the relevant expiry
dates; and
• the timing and amount of proceeds that can be sourced from the sale of equity investments, if needed.
Austral Gold Limited
68
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
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 2024 are detailed below:
Allowance for Obsolete and Slow-Moving Inventory
The Group assesses the need for an allowance for obsolete and slow-moving inventory at each reporting date. This
assessment requires judgement and involves considering factors such as:
• Historical Usage: Past consumption patterns of inventory items.
• Future Usage: Likely use based on demand, considering market trends and economic conditions.
• Physical Condition: The physical state of the inventory, including any damage or deterioration.
Based on these factors, an allowance is made for inventory items that are no longer expected to used.
Ore Reserves and Mineral Resources.
The Group reviewed 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 of 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), (further
details on carrying value are included in note 21), the provisions for reclamation and rehabilitation (further details on the
mine closure provisions are included in note 26), the recognition of deferred tax assets (further details on deferred tax
assets are included in note 14), as well as the amount of amortisation charged to the statement of profit or loss.
Impairment for property, plant and equipment and mine properties
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, mineral resources, 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 and 22).
Exploration and evaluation assets
The Group tests at each reporting date whether there are any indicators of impairment as identified by AASB 6 “Explora-
tion 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
assessing 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. Indicators of impairment were identi-
fied as disclosed in note 23.
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 corresponding
asset and rehabilitation liability if the subsidiary is operating, and expense, if the subsidiary is not operating. The calcula-
tion of this provision requires assumptions such as application of environmental legislation, mine closure dates, available
technologies and engineering cost estimates. The related carrying amounts are disclosed in note 26.
Austral Gold Limited
69
Annual Report 2024
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 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 18— Trade and other receivables
• Note 19— Other financial assets
• Note 32 — 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
2024. The Group applied Supplier Finance Arrangements (Amendments to AASB 7 and 107) and amendments to AASB
101 Presentation of Financial Statements the classification of certain liabilities as current or non-current may change
(e.g. convertible debt and liabilities with covenants) for the first time in the current year. The amendments to AASB 7 and
107 introduce new disclosures to help users of the financial statements to assess the effects of supplier finance arrange-
ments on an entity’s liabilities, cash flows and liquidity risk, while the amendments to AASB 101 help provide users with
better insights into the entity’s financial health and potential risks. These do no impact the Group as it does not have
finance arrangements, nor any loan covenants in place at 31 December 2024. In addition, a number of new standards
and amendments to standards are effective for annual periods beginning after January 2025 and earlier application is
permitted and earlier application is permitted;
The Group has not early adopted any other new or amended standards in preparing these consolidated financial state-
ments and does not expect a material impact from the application of the standards to the Group’s Consolidated Financial
Statements.
Austral Gold Limited
70
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
6. COST OF SALES
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Production
22,401
31,107
Staff costs
5,927
9,707
Royalty
970
1,198
Mining canon fees
339
523
Inventory movements
356
(1,363)
Total cost of sales before depreciation and amortisation expense
29,993
41,172
Depreciation of plant and equipment
2,846
5,562
Amortisation of mine properties
394
449
Total depreciation and amortisation expense
3,240
6,011
Total cost of sales
33,233
47,183
Severance included in staff costs
158
317
7. OTHER INCOME
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Gain on sale of subsidiary (note 13)
91
1,964
Gain on revaluation of equity securities (note 19)
-
1,012
Gain on sale of financial assets
939
21
Gain on fair value of financial assets
785
-
Gain on sale of equipment
654
46
Equipment rental
8
222
Other
381
466
Total other income
2,858
3,731
8. OTHER EXPENSES
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Loss on fair value of financial assets
-
992
Care and maintenance(1)
2,114
2,143
Rawhide option and due diligence expenses
-
617
Exploration expenses
272
365
Inventory allowance at non-operating mine
299
272
Other(2)
1,581
397
Total other expenses
4,266
4,786
(1) Includes depreciation of US$18 thousand (2023-US$18 thousand)
(2) Termination of agreement with Amancaya contractor and expenses related to preparing the Casposo plant for use
Austral Gold Limited
71
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
9. ADMINISTRATION EXPENSES
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Office and utility costs
922
1,039
Staff costs (1),(2)
2,974
2,767
Consulting and professional services
1,283
1,194
Non-executive director fees(2)
300
300
Depreciation on equipment
14
19
Business, property and other taxes
721
652
Other
115
174
Total administration expenses
6,329
6,145
(1) Severance included in staff costs
292
138
(2) Amounts for defined contribution plans included in staff costs and director fees
75
27
10. FINANCE INCOME
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Interest income
101
140
Gain from foreign exchange
3,652
4,108
Present value adjustment to mine closure provision
-
36
Total finance income
3,753
4,284
11. FINANCE COSTS
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Interest expense
3,206
1,216
Interest expense on leases
186
179
Present value adjustment to mine closure provision
299
-
Allowance on GST/VAT receivable
-
145
Total finance costs
3,691
1,540
12. AUDITOR’S REMUNERATION
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Audit and review services
Auditors of the Group-KPMG
Audit and review of financial statements-Group
226,920
110,839
Audit and review of financial statements-controlled entities
74,200
105,700
301,120
216,539
13. GAIN ON SALE OF SUBSIDIARY
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Gain on sale of subsidiary
91
1,964
On 20 May 2024, the Group’s subsidiary Austral Gold Argentina S.A. (“AGASA”) and New Dimension Guernsey Limited,
an affiliate of TSXV listed Capella Minerals Limited, entered into a share purchase agreement (“The Agreement”) to sell
100% of their pro-rata share of Sierra Blanca S.A. (“SBSA”) to ASX listed Unico Silver Limited (“Unico”). AGASA owned
54.69% of SBSA while New Dimension Guernsey owned 45.31% of SBSA, whose major assets are exploration assets.
The 100% shares were traded for 5,000,000 shares issued by Unico, which required Unico’s shareholder approval and all
conditions for closing the deal were met and the sale was completed on 24 July 2024. AGASA received 2,734,500 Unico
shares respective to their pro-rata shares valued at US$315,595 and the amount of US$7,974 for the reimbursement
of expenses. A gain on sale of US$91 thousand was recognised (note 7) based on the difference between the carrying
value of the assets and consideration received.
Austral Gold Limited
72
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
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. 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 thousand carrying value of the assets held for
sale and the total consideration of US$10,213 thousand related to:
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 each of November 2023 and November 2024). The fair value of the outstanding US$1,000 thousand was estimated
at US$963 thousand (note 18).
b. 49,751,970 shares of Unico valued at US$4,709 thousand (A$6,965 thousand) at closing that were restricted as they
were subject to a holding lock, with 50% released on the first anniversary of the closing date and 50% released on
the second anniversary of the closing date. During the year ended 31 December 2024, the Group owned 22,925,291
shares of Unico as it sold 29,561,179 shares of Unico, of which 4,685,194 shares were sold after receiving approval
from Unico to remove the holding lock (note 19). As of 31 December 2024, 20,190,791 shares of Unico were restricted
until 1 March 2025.
c. 15 million options of Unico. The value of the options at 31 December 2024 was US$563 thousand using the key
assumptions as disclosed in note 19.
14. INCOME TAX EXPENSE
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
(A) Income tax expense comprises:
Current income tax (benefit)
-
(637)
Deferred income tax (benefit) expense
(5,135)
(71)
Income tax
(5,135)
(708)
(B) Reconciliation of effective income tax rate:
Loss before tax
(32,209)
(7,951)
Prima facie income tax (benefit)/expense calculated at 30%
(9,663)
(2,386)
Difference due to blended overseas tax rate*
1,094
460
Share of loss of associates
-
16
Non-deductible expenses
2,605
740
Prior year deferred income tax expense adjustments
-
87
Prior year current income tax true up
(31)
(637)
Derecognition of carry-forward tax losses
1,304
1,012
Recognition of previously unrecognised deductible temporary differences and tax losses
(444)
-
Income tax
(5,135)
(708)
*Chile tax rate: 27% (31 December 2023: 27%). Argentina tax rate: 30-25% (31 December 2023: 30-25%%).
Austral Gold Limited
73
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in
thousands of US$
31 December 2024
31 December 2023
Chile
Argentina
Other
Total
Chile
Argentina
Other
Total
(C) Deferred tax assets and liabilities
Deferred tax assets
Other receivable
269
-
-
269
83
-
-
83
Inventory
80
63
-
143
77
11
-
88
Mining concessions brought into
account
-
36
-
36
-
46
-
46
Accrual for mine closure
2,009
986
-
2,995
2,728
842
-
3,570
Financial assets
656
-
-
656
699
-
699
Tax losses carried forward
6,982
1,185
7,135
15,302
6,857
375
7,337
14,569
Payroll accrual
173
-
-
173
295
-
-
295
Other
-
38
-
38
36
26
-
62
Leasing liabilities
411
-
-
411
793
-
-
793
Allowance for tax carry forward
-
(2,278)
(6,790)
(9,068)
-
(1,300)
(7,337)
(8,637)
Deferred tax assets
10,580
30
345
10,955
11,568
-
-
11,568
Deferred tax liabilities
Exploration and evaluation assets
(2,784)
-
-
(2,784)
(3,405)
-
-
(3,405)
Property, Plant and equipment
(4,694)
-
-
(4,694)
(9,254)
-
-
(9,254)
Accrual for mine closure
(334)
-
-
(334)
(968)
-
-
(968)
Deferred income
(675)
-
-
(675)
(597)
-
-
(597)
Property, plant and equipment
inflation adjustment
-
(861)
-
(861)
-
(881)
-
(881)
Leasing assets
(576)
-
-
(576)
(927)
-
-
(927)
Financial assets
-
(12)
(345)
(357)
-
-
-
-
Trade and other receivables
-
(3)
-
(3)
-
-
-
-
Deferred tax liabilities
(9,063)
(876)
(345)
(10,284)
(15,151)
(881)
-
(16,032)
Net deferred tax assets/
(liabilities)
1,517
(846)
-
671
(3,583)
(881)
-
(4,464)
Movement in deferred tax
balances
Opening balance
(3,583)
(881)
-
(4,464)
(4,106)
(368)
(61)
(4,535)
Exchange rate difference
-
-
-
-
-
-
-
-
Charged to profit or loss
5,100
35
-
5,135
523
(513)
61
71
Closing balance
1,517
(846)
-
671
(3,583)
(881)
-
(4,464)
Deferred tax assets have not been recognised in respect to tax losses for certain entities of the Group. See below for details.
(D) The Group operates in Australia, Chile, Argentina, Canada, and the US.
Australia has enacted new legislation to implement the global minimum top-up tax in accordance with Pillar Two of the
OECD/G20 Two-Pillar Solution.
Canada is actively working on implementing the Pillar Two rules. The Canadian government has expressed its commitment
to the OECD/G20 Inclusive Framework and is expected to introduce legislation to align with the global minimum tax rules.
The US has incorporated aspects of the Pillar Two framework through its Corporate Alternative Minimum Tax (CAMT)
under the Inflation Reduction Act. This includes a 15% minimum tax on the adjusted financial statement income of large
corporations.
Chile is part of the OECD Inclusive Framework and is in the process of aligning its tax policies with the Pillar Two require-
ments. The country is expected to implement the global minimum tax rules to ensure compliance with the international
standards.
In certain entities of the Group, deferred tax assets have not been recognised because it is not probable that future
taxable profit will be available to utilise the deferred tax assets.
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.
Austral Gold Limited
74
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
(E) Unrecognised Deferred Tax Assets
All figures are reported
in thousands of US$
As at 31 December
Gross amount 2024
Expiry
Gross amount 2023
Expiry
Australia
Tax losses
12,464
no-expiry
13,658
no-expiry
Capital losses
1,999
no-expiry
2,208
no-expiry
All figures are reported
in thousands of US$
As at 31 December
Gross amount 2024
Expiry
Gross amount 2023
Expiry
Canada
Tax losses
5,654
2037-2045
4,861
2037-2044
Capital losses
269
no-expiry
311
no-expiry
All figures are reported
in thousands of US$
As at 31 December
Gross amount 2024
Expiry
Gross amount 2023
Expiry
USA
Tax losses
5,700
no-expiry
5,624
no-expiry
All figures are reported
in thousands of US$
As at 31 December
Gross amount 2024
Expiry
Gross amount 2023
Expiry
Argentina
Tax losses
4,740
2025-2029
1,495
2024-2028
Deferred tax assets
4,372
no-expiry
3,700
no-expiry
All figures are reported
in thousands of US$
As at 31 December
Gross amount 2024
Gross amount 2023
Total
Tax losses
28,558
25,638
Capital losses
2,268
2,519
Temporary differences
4,372
3,700
15. EARNINGS PER SHARE
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Net loss attributable to owners
(27,068)
(7,229)
Weighted-average number of ordinary shares (basic)
612,311,353
612,311,353
Weighted-average number of ordinary shares (diluted) at 31 December(1)
612,311,353
612,311,353
Basic earnings (loss) per ordinary share (cents)
(4.42)
(1.18)
Diluted earnings (loss) per ordinary share (cents)
(4.42)
(1.18)
(1) The potential conversion of convertible notes (note 27) of up to 15,578,942 ordinary shares could potentially dilute basic earnings per share in the future, but were not
included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented.
16. 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/Manantiales which is based in
Argentina. The CODM monitors the performance in these two regions separately. During the year ended 31 December
2024 and 2023, the Group earned 100% of its consolidated revenue from sales made to one customer.
Austral Gold Limited
75
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported
in thousands of US$
For the year ended 31 December 2024
For the year ended 31 December 2023
Guanaco/
Amancaya
Casposo
Group and
unallocated
items
Consolidated
Guanaco/
Amancaya
Casposo
Group and
unallocated
items
Consolidated
Sales Revenue
Gold
35,871
-
-
35,871
45,872
-
-
45,872
Silver
919
-
-
919
1,857
-
-
1,857
Cost of sales
(29,993)
-
-
(29,993)
(41,172)
-
-
(41,172)
Depreciation and
amortisation expense
(3,240)
-
-
(3,240)
(6,011)
-
-
(6,011)
Impairment loss on
mine properties
(2,550)
-
-
(2,550)
-
-
-
-
Impairment loss on
property plant and
equipment
(16,705)
-
-
(16,705)
-
-
-
-
Impairment loss
exploration and
evaluation assets
(763)
-
(8,073)
(8,836)
(2,328)
-
(1,653)
(3,981)
Other income1
720
235
1,903
2,858
249
352
3,130
3,731
Other expenses
(1,363)
(2,849)
(54)
(4,266)
(578)
(2,415)
(1,793)
(4,786)
Administration
expenses
(3,168)
(92)
(3,069)
(6,329)
(2,963)
(34)
(3,148)
(6,145)
Finance income
2,460
369
924
3,753
1,848
396
2,040
4,284
Finance expenses
(2,241)
(51)
(1,399)
(3,691)
(1,169)
(182)
(189)
(1,540)
Share of loss of
associates
-
-
-
-
-
-
(60)
(60)
Income tax (expense)/
benefit
5,100
35
-
5,135
1,221
(513)
-
708
Segment (loss)
(14,953)
(2,353)
(9,768)
(27,074)
(3,174)
(2,396)
(1,673)
(7,243)
Segment assets
49,050
16,240
7,800
73,090
72,090
14,163
18,253
104,506
Segment liabilities
44,986
9,179
4,560
58,725
51,188
4,985
6,760
62,933
Property, plant and
equipment
434
-
-
434
11,283
-
-
11,283
Exploration and
Evaluation expenditure
287
641
-
928
752
919
2,943
4,614
Mine properties
58
-
-
58
9
-
-
9
Capital expenditure
779
641
-
1,420
12,044
919
2,943
15,906
1. Includes gain on sale of subsidiary of US$1,964 and gain on revaluation of equity securities of US$1,012 related to other Group for the year ended 31 December 2023.
Geographic information:
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Revenue by geographic location
Chile
36,790
47,729
Total revenue
36,790
47,729
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Non-current assets by geographic location
Chile
40,811
66,724
Argentina
12,102
19,400
Canada
-
915
British Virgin Islands
-
110
Total non-current assets
52,913
87,149
Austral Gold Limited
76
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
17. CASH AND CASH EQUIVALENTS
All figures are reported in thousands of US$
As at 31 December
2024
2023
Cash at call and in hand
3,372
1,261
Short-term investments
218
-
Total cash and cash equivalents
3,590
1,261
Reconciliation of Cash
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
3,590
670
Restricted cash received from private placement of convertible note offering
(note 24)
-
591
Cash and cash equivalents
3,590
1,261
Bank overdraft
(199)
(222)
Cash and cash equivalents, net of bank overdraft
3,391
1,039
18. TRADE AND OTHER RECEIVABLES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Current
Trade Receivables
106
668
Other receivables
3,577
911
GST/VAT receivable
744
777
Total current receivables
4,427
2,356
Non-current
GST/VAT receivable
808
540
Other receivables
21
1,032
Total non-current receivables
829
1,572
Allowance for expected credit losses on GST/VAT
(482)
(445)
Net non-current receivables
347
1,127
Trade debtors ageing
The ageing of trade receivables is 0-30 days
106
668
>30 days
-
-
As part of the Other receivables disclosed above, the main balances are the receivables from Unico disclosed in note
13 and the receivable from Challenger Gold as disclosed in note 33. The receivables, which were greater than one year
when they arose, have been discounted using the following US treasury yield rates:
All figures are reported in thousands of US$
Due date
Undiscounted receivable
Discounted receivable
Discount rate (%)
2 January 2025
2,000
N/A
N/A
25 November 2025
1,000
963
4.17
1.1 Past due but not impaired
There were no trade receivables past due at 31 December 2024 (31 December 2023: 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 32 for more information on the risk management policy of the Group and the credit quality of the receivables.
1.3 Key customers
During 2024 and 2023 the Group is reliant on one customer to which gold and silver produced from the Guanaco/Aman-
caya mines are sold.
Austral Gold Limited
77
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
19. OTHER FINANCIAL ASSETS
All figures are reported in thousands of US$
As at 31 December
2024
2023
Current
Listed bonds — level 1
-
23
Listed equity securities — level 1
2,820
2,427
Unico Silver options— level 3
563
496
Unlisted equity securities, Ensign—level 3
-
1,012
Total current other financial assets at fair value
3,383
3,958
Non-Current
Listed equity securities— level 1
-
2,127
Total non-current other financial assets at fair value
3,383
6,085
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.
Current Unico Silver equity securities classified as level 1 and non-current listed equity securities refers to listed equity
securities that are subject to a holding lock (note 13b).
Listed equity securities are shares of Australian and Canadian listed mining companies nominated in A$ and C$ at 31
December 2024 and 31 December 2023, 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$
Note
Equity securities
Options
Balance at 31 December 2022
-
28
Addition from sale of SCRN Properties Ltd.
13
712
Unrealised gain on revaluation of equity securities
1,012
(244)
Balance at 31 December 2023
1,012
496
Sale of equity instrument (formerly Ensign) shares to level 1
(1,012)
-
Change in fair value
-
67
Balance at 31 December 2024
-
563
Transfers
During the year ended 31 December 2024, unlisted equity securities of Ensign were transferred from level 3 to listed equity
securities-level 1 as the securities of Ensign were acquired by Revival Gold Inc., a Canadian listed company in exchange
for Revival Gold securities. All of the Revival Gold shares received by the Company were sold at 31 December 2024.
Unlisted equity securities
As of 31 December 2023, the Group prepared several valuation models and determined using publicly available informa-
tion, 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 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 Revival Gold (formerly
Ensign) under the Enterprise Value to Mineral Resources model as of 31 December 2023:
• 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
Austral Gold Limited
78
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
Fair value hierarchy
Refer to note 4 of these financial statements for details of the fair value hierarchy.
The following assumptions were used to determine the fair value of the Group’s level 3 equity instruments under the
Enterprise Value to Mineral Resources Model:
As at 31 December
2024
2023
Strike price
A$0.26
A$0.26
Annual volatility
92.50%
99.79%
Interest rate
3.95%
3.96%
Expiration date
1 March 2026
1 March 2026
The value of the options was determined using the Black-Scholes model.
20. INVENTORIES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Materials and supplies
5,918
6,558
Ore stocks
1,647
1,736
Gold bullion and gold in process
1,139
1,405
Total inventories
8,704
9,699
*As part of the Group’s regular inventory review process, certain materials and supplies that are considered obsolete were identified. Obsolescence is determined
based on factors such as age, condition, and likelihood of use. The allowance for inventory obsolescence forming part of the above balance is US$2,181 (31 December
2023:US$1,874) resulting in an expense of US$299 included with other expenses (note 8) and US$8 charged to cost of sales (note 6)
21. MINE PROPERTIES
All figures are reported in thousands of US$
Guanaco/Amancaya
Casposo
Total
Mine Properties – 31 December 2023
Cost
68,516
9,795
78,311
Accumulated amortisation
(62,257)
(9,795)
(72,052)
Carrying value — Mine Properties
6,259
-
6,259
Mine Properties – 31 December 2024
Cost
66,596
9,795
76,391
Accumulated amortisation
(65,201)
(9,795)
(74,996)
Carrying value — Mine Properties
1,395
-
1,395
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Costs carried forward in respect of areas of interest
Carrying amount at the beginning of the year
6,259
4,054
Additions
58
9
Transfers from exploration and evaluation expenditure
103
-
Impairment for the year
(2,550)
-
(Decrease) increase in provision for reclamation and rehabilitation
(2,081)
2,645
Amortisation
(394)
(449)
Carrying amount at end of the year
1,395
6,259
Austral Gold Limited
79
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
Carrying value — Guanaco/Amancaya
The Guanaco and Amancaya mines have been determined to be a single cash generating unit (‘CGU’).
In the 31 December 2024 financial year, the Group decided to temporarily cease operations at the Amancaya underground
mine. Since the open pit mining operations began at the Amancaya underground mine, ore has been transferred to the
Guanaco mine for processing. Following the completion of the construction of the Heap Reprocessing Project at the
Guanaco mine site, the Heap Processing Project is the main source of mineral production.
Since the operations at the Amancaya underground mine have now temporarily ceased, with no near-term plans to recom-
mence operations, the Group identified an indicator of impairment and performed an assessment of the recoverable value.
The Group determined the recoverable value of the Amancaya assets to be $nil and an impairment charge of $19,255
thousand has been recorded as at 31 December 2024, relating to mine properties ($2,550 thousand) and property plant and
equipment assets $(16,705 thousand). The impairment charge is recorded in the Guanaco/Amancaya operating segment.
The fair value less cost of disposal, is used to assess the recoverable value of the remaining assets in the Guanaco/
Amancaya 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$15,372 thousand after deducting working capital and non-current liabilities related to the CGU, for the
purposes of assessing for impairment, while the carrying value of the Guanaco, plant and equipment and mining assets
is US$27,367 thousand.
An impairment test was also performed internally using the discounted cash flow model (DCF) as the primary valuation
methodology. This fair value less cost of disposal (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 (2025-2034): US$2,050/oz -US$2,892/oz, with a weighted average of US$2,262/oz (31 December
2023 (2024-2033): US$2,048/oz-1,815/oz)
• Forecast Silver price (2025-2034):US$33/oz-27/oz (31 December 2023 (2024-2033) US$24/oz– US$25/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 2034 (31 December 2023: 2033).
• Discount Rate (pre-tax): 10.8% (31 December 2023:9.6%)
• Discount Rate (after-tax):7.9% (31 December 2023: 8.5%)
• The discount rate was a measure estimated based on the Company’s current weighted average cost of capital.
• Production costs 2025: US$1,863/oz (2024: US$1,364/oz)
• Production costs are management’s estimate of costs based on estimated production, historical data and anticipated
inflationary changes.
Production is based on Proven and Probable reserves and resource estimates to 31 December 2024 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 based on the sensitivity analysis to the key assumptions, which would have the following results;
The sensitivity to +/- 10% variation in the gold price US$1,845/oz -US$3,181/oz on the recoverable value of the Guanaco
project results in an impact of +/- US$18,000 thousand.
The sensitivity to +/- 10% variation in the discount rate 9.7%-11.8%) recoverable value of the Guanaco project results
in an impact of +/- US$2,000 thousand.
The sensitivity to +/- 10% variation in production costs on the recoverable value of the Guanaco project results in an
impact of +/- US$11,000 thousand.
22. PROPERTY, PLANT AND EQUIPMENT
All figures are reported in thousands of US$
As at 31 December
2024
2023
Property, plant and equipment owned
24,334
42,581
Right of use assets
5,721
7,035
30,055
49,616
Property, plant and equipment owned
Cost
174,300
175,490
Accumulated depreciation
(149,966)
(132,909)
Carrying amount at end of the year
24,334
42,581
Austral Gold Limited
80
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Movements in carrying value
Carrying amount at beginning of the year
42,581
35,549
Additions
434
11,283
Depreciation
(1,811)
(4,184)
Disposals
(1,624)
(760)
Depreciation on disposals
1,459
693
Impairment for the year
(16,705)
-
Carrying amount at end of the year
24,334
42,581
The majority of the property, plant, and equipment is allocated to the Guanaco/Amancaya Cash Generating Unit (“CGU”),
which totals US$27,367 thousand, including right of use (note 22). The Casposo property, plant, and equipment are
recorded at salvage value, as they are not currently in use, with a carrying amount of US$4,069 thousand.
22.1 Reconciliation of carrying amount
All figures are reported
in thousands
of US$
Underground
Mine
Development
Plant
Mining
Equipment
Buildings
Heap
Other
Total
Cost
Balance at 31
December 2022
86,733
36,052
19,907
14,318
612
7,345
164,967
Additions
5,009
122
40
-
5,633
479
11,283
Disposals
-
-
(760)
-
-
-
(760)
Balance at 31
December 2023
91,742
36,174
19,187
14,318
6,245
7,824
175,490
Additions
-
93
-
-
316
25
434
Disposals
-
-
(828)
-
-
(796)
(1,624)
Balance at 31
December 2024
91,742
36,267
18,359
14,318
6,561
7,053
174,300
Accumulated
depreciation
Balance at 31
December 2022
66,936
27,606
15,915
11,937
-
7,024
129,418
Depreciation
3,133
561
162
219
103
6
4,184
Disposals
-
-
(693)
-
-
-
(693)
Balance at 31
December 2023
70,069
28,167
15,384
12,156
103
7,030
132,909
Depreciation
824
383
107
129
334
34
1,811
Disposals
-
-
(661)
-
-
(798)
(1,459)
Balance at 31
December 2024
70,893
28,550
14,830
12,285
437
6,266
103,261
Impairment
Balance at 31
December 2023
-
-
-
-
-
-
-
Impairment
16,705
-
-
-
-
-
16,705
Balance at 31
December 2024
16,705
-
-
-
-
-
16,705
Carrying amounts
At 31 December 2023
21,673
8,007
3,803
2,162
6,142
794
42,581
At 31 December 2024
4,144
7,717
3,529
2,033
6,124
787
24,334
Austral Gold Limited
81
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
22.2 Right of use assets
All figures are reported in
thousands of US$
Office
Vehicles
Machinery and
equipment
Total
Balance at 31 December 2022
9
2,544
4,155
6,708
Additions
232
-
1,670
1,902
Disposals
-
(160)
-
(160)
Less depreciation
(83)
(1,033)
(299)
(1,415)
Balance at 31 December 2023
158
1,351
5,526
7,035
Additions
-
-
-
-
Disposals
(39)
(208)
-
(247)
Less depreciation
(78)
(815)
(174)
(1,067)
Balance at 31 December 2024
41
328
5,352
5,721
23. EXPLORATION AND EVALUATION EXPENDITURE
All figures are reported in thousands of US$
For the year ended 31 December
2024
2023
Costs carried forward in respect of areas of interest:
Carrying amount at the beginning of the year
27,894
27,261
Additions
928
4,614
Disposal of assets
(424)
-
Transfers to mine properties
(103)
-
Impairment for the year
(8,836)
(3,981)
Carrying amount at end of the year
19,459
27,894
The recovery of the carrying amount of the exploration and evaluation assets is dependent on the successful development
and commercial exploitation or sale of the areas of interest. This balance mainly relates to expenditures at the Guanaco,
and Casposo exploration areas of interest.
Additions for the year ended 31 December 2024 mainly related to the Casposo-Manantiales project in San Juan, Argen-
tina, and the Guanaco projects in Chile. For the year ended 31 December 2023, additions primarily related to exploration
on the Jaguelito project in the Indio belt, Argentina, as well as the Casposo-Manantiales project in San Juan, Argentina,
and the Guanaco projects in Chile.
During the year ended 31 December 2024, the Group impaired the Jaguelito project for US$4,943 thousand. The decision
was made after Mexplort Perforaciones Mineras S.A. (”Mexplort”), with whom the Company has an option agreement,
informed the Group that they are not willing to fund their share of the project. In addition, the group impaired the three
properties previously acquired from Revelo Resources in 2021 for US$3,131 thousand as no exploration and evaluation
expenditures had been performed on these properties since their acquisition. Furthermore, the Group impaired two
properties located near Guanaco in Chile: the San Guillermo property for US$516 thousand and the West Natalia property
for US$246 thousand as the Group abandoned the properties.
Austral Gold Limited
82
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
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.
Impairment for the year ended 31 December 2024 and 2023 relate to impairment on the exploration projects with either
no expected value or partial value. An impairment occurs where the Company no longer has rights to the area.
Colossus Resource Agreement
On 4 April 2023, the Group entered executed a letter of intent to grant Colossus Resources Corp. (“Colossus”) an option
to acquire the Group’s Chilean Calvario and Mirador copper projects (the “Option”). Colossus paid US$100 thousand,
recorded as other income (note 7), with US$75 thousand used to pay the 2023 mining canon fees. Subsequently, the
parties executed an agreement on 15 November 2023. The key terms include: (i) a US$2,500 thousand work commitment
over a two-year period, (ii) a 19.99% shareholding in Colossus (non- diluted basis), (iii) one million Colossus warrants at a
C$0.50 exercise price and anti-dilution rights up to a US$3,800 thousand capital raise, and (iv) a contingent share payment
if Colossus completes a prefeasibility study. Colossus was also required to complete an equity financing of at least US$1.5
million within a specified period, which remains outstanding.
24. TRADE AND OTHER PAYABLES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Current
Trade payables
5,501
15,179
Accrued expenses
7,000
5,312
Royalty payable
1,306
578
Director fees
654
531
Restricted cash received on private placement of convertible notes (note 27)
-
591
Other
322
95
Total current trade and other payables
14,783
22,286
Austral Gold Limited
83
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
25. EMPLOYEE ENTITLEMENTS
All figures are reported in thousands of US$
As at 31 December
2024
2023
Current
Salaries, social security and bonuses
2,151
1,967
Employee entitlements
757
1,023
Total current employee entitlements
2,908
2,990
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$9,550 thousand
(2023- US$13,286 thousand), including US$5,927 thousand (2023-US$9,707 thousand) in cost of sales and US$3,623
thousand (2023-US$3,579 thousand) in administration expenses and care and maintenance expenses. The non-cash
adjustment of US$1,271 thousand in the 2024 Consolidated Statement of Cash Flows (2023: US$960 thousand) relates
to accrued bonuses for the period and other non-cash employee entitlements.
26. PROVISIONS
All figures are reported in thousands of US$
As at 31 December
2024
2023
Mine closure
11,566
13,695
Movement in non-current provisions
Opening balance
13,695
10,924
Increase in provision for reclamation and rehabilitation expensed
471
-
(Decrease)/ increase of provision for reclamation and rehabilitation capitalised
(2,081)
2,645
Exchange difference
(818)
161
Present value adjustment
299
(35)
Closing balance
11,566
13,695
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.
On 8 August 2024, the Chilean National Geology and Mining Service Agency (“Servicio Nacional de Geología y Minería” or
“SERNAGEOMIN”) approved the updated Reclamation and Rehabilitation/Mine-Closure Plan (“MCP”) for the Guanaco-
Amancaya mine complex, resulting in a decrease of the MCP provision by US$2,081 thousand.
The MCP provision 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 carrying amount of the mine closure asset of US$1,237 thousand is included in the carrying value of mine properties
CGU totalling US$15,372 disclosed in note 21.
As at 31 December 2024, the total restoration provision amounts to US$7,440 thousand (31 December 2023–US$10,103
thousand) for Guanaco/ Amancaya mine. The present value of the restoration provision was determined based on the
following assumptions:
Undiscounted rehabilitation costs:
• US$9,340 thousand (31 December 2023– US$ 12,860 thousand);
• Discount period: 9.0 years (Discount period based on expected timing of restoration work).
• Discount rate: 2.58% (2023- 2.44%)
At 31 December 2024, the total restoration provision amounts to US$4,126 thousand (31 December 2023: US$3,592) for
the Casposo mine. The present value of the restoration provision was determined based on the following assumptions:
• Number of years, 7 (31 December 2023-5 years).
• Undiscounted reclamation and rehabilitation costs: US$4,760 thousand (31 December 2023-US$3,912 thousand);
• Discount rate: 2.08% (2023–1.7%)
Austral Gold Limited
84
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
27. LOANS AND BORROWINGS
All figures are reported in thousands of US$
As at 31 December
2024
2023
Current
Loan facilities
3,779
8,823
Related party loans
1,606
4,717
Interest on convertible notes
48
-
Total current loans and borrowings
5,433
13,540
Non-current
Loan facilities
8,547
2,568
Related party loans
10,790
-
Convertible notes
564
-
Total non-current loans and borrowings
19,901
2,568
Loan Facilities
During the year ended 31 December 2024, the Group entered into the following bank loans:
1. On 25 July 2024, the Group secured a new US$7,000 thousand loan with Santander Bank at an interest rate of 10.17%,
with monthly principal and interest repayments of US$167 thousand from 21 February 2025 to 17 July 2028. This
loan replaced US$6,800 thousand in debt maturing between 2024 and 2026. Under the loan agreement, equipment
appraised at US$3,824 thousand was provided as collateral.
2. On 9 December 2024, the Group secured a new US$2,883 thousand loan with Banco de Crédito e Inversiones SA
(BCI) at an interest rate of 9.9%, with repayments scheduled from March 2025 to March 2026. This loan replaced
US$2,613 thousand in debt due between 2024 and 2026. Plant related equipment appraised at US$5,960 was provided
as collateral for the loan.
3. On 20 December 2024, the Group entered into an US$7,000 thousand secured loan facility with an interest rate of 8%
per annum to refurbish the Casposo Plant from Banco San Juan. The first installment of the loan of US$1,500 thousand
was received on that date and the remaining installments under the loan are due as follows:
• 60-75 days after signing: US$2,500 thousand
• 30-45 days after the prior disbursement: US$1,000 thousand
• 30-45 days after the prior disbursement: US$500 thousand
• 30-45 days after the prior disbursement: US$1,500 thousand
Each disbursement, except for the initial US$1,500 thousand, is subject to using the funds for capital expenditures and
expenditures required to refurbish the Casposo Plant. The second disbursement is also subject to the Group contributing
US$500 thousand to Casposo between November 2024 to February 2025.
The loan is repayable over 24 months from each installment received, with monthly repayments of principal and interest
to commence on 20 June 2025.
A pledge guarantee was provided over Casposo’s Plant and a mortgage over the farmland where the processing plant
is located were provided to Banco San Juan as collateral.
At 31 December 2024, the current and non-current Loan facilities are to be repaid over 7 months and 42 months respec-
tively at an annual average interest rate of 11.5% (2023–9.6%).
Related party loans
During the year ended 31 December 2024, the Group received unsecured related party loans totaling US$8,516,397 (31
December 2023-US$4,555,000). Including accrued interest, the total amount owed at 31 December 2024 is US$12,396,018
(31 December 2023-US$4,716,790). Details of the new loans received and repaid during the period are as follows:
• On 1 March 2024, the Group entered into an unsecured bridge loan from Consultores Assets Management SA (CAMSA)
for up to US$2,200,000 with Consultores Assets Management (CAMSA), an entity controlled by Austral’s major share-
holder and Chair, Eduardo Elsztain. US$1,000,000 was received under the loan facility on 4 March 2024.
• On 12 March 2024, the loan maturity dates of the loans held by Inversiones Financieras del Sur S.A. (“IFISA”), Eduardo
Elsztain and Saul Zang aggregating principal of US$4,555,000 were extended to 30 September 2024. The loans were
further extended to 31 Jul 2026.
• On 27 March 2024, the Group entered into an unsecured bridge loan from CAMSA for approximately AR$1,200,000
thousand Argentine pesos (“ARS”) equivalent to US$1,401,051. The loan carried an interest rate of 100% per annum,
and was repaid with proceeds received from a loan from Banco Hipotecario (BH) (described below). Interest on the
Austral Gold Limited
85
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
loan totaled approximately US$123,992. The loan was repaid in Argentine pesos (ARS). The Company’s directors,
Eduardo Elsztain and Saul Zang, are also directors and shareholders of CAMSA.
• On 27 April 2024, the Group entered into an unsecured related party loan from BH, a company related to Eduardo
Elsztain for AR$1,400,000,000 (US$1,600,000). The interest on the loan is based on the five-day average of the local
market reference rate (“MRR”) Badlar (“Buenos Aires Deposits of Large Amount Rate”) plus 2%, which was effec-
tively 43.5%. The Company used the proceeds to repay CAMSA. On 1 October 2024, BH loan was renewed, and
the principal amount of the loan was increased to AR$1,600,000,000 (US$1,615,346). Interest on the renewed loan
is 44% per annum.
• US$4,500,000 was received from IFISA, Eduardo Elsztain and Saúl Zang, as follows:
– As announced on 30 August 2024, the Company entered into an unsecured credit facility agreement with IFISA for
up to US$3,500,000 with an interest rate of 9% per annum, with funds advanced under the facility due 29 January
2026. US$2,500,000 was advanced under the facility and US$1,000,000 has not been funded as of the date of this
financial report. On 28 February 2025, IFISA and the Group executed an assignment, assumption and amendment
agreement with Eduardo Elsztain to assign US$1,700,000 of the funds advanced under the credit facility, effective 30
August 2024. Additionally, IFISA and the Group entered into a similar agreement with Saul Zang to assign $300,000
of the funds advanced under the same credit facility agreement.
– US$2,000,000, announced on 26 September under a loan agreement, was received on 1 October. The loan provides
for collateral of up to 20,191,791 shares of Unico Silver Limited, subject to shareholder approval with an interest
rate of 7% per annum.
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 AUD$1, to an accredited and sophisticated investor. The 919,158
notes was calculated by converting the gross proceeds into equivalent Australian dollars. The notes are to bear inter-
est at a rate of 9% per annum and mature on the second anniversary of the date they are issued. Each note issued
entitles the holder to convert the notes into ordinary shares of the Company at the holder’s option at a conversion price
of AUD$0.059 per share during the first year (15,578,942 ordinary shares), and AUD$0.118 (7,789,471 ordinary shares)
during the second year. The private placement was expected to yield gross proceeds of US$1,000 thousand (approxi-
mately AUD$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.
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 and the second tranche
due by 15 March 2024.
On 15 February 2024, the first tranche of the Agreement was completed and the US$591 thousand became unrestricted
cash. The second tranche was not closed and expired.
The carrying value of the convertible notes is US$612 thousand (inclusive of accrued interest and is accounted for using
the amortised costs method)
Austral Gold Limited
86
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
Reconciliation of movements of liabilities to cash flows arising from financing activities
All figures are reported in thousands of US$
Loans
Leasing
Balance at 1 January 2023
8,646
2,836
Change from financing cash flows
Proceeds from loans and borrowings
17,955
-
Repayments
(10,777)
(2,252)
Interest paid
(720)
(186)
Other changes
New leases
-
1,742
Foreign exchange
-
(14)
Interest expense
1,004
186
Balance at 31 December 2023
16,108
2,312
Balance at 1 January 2024
16,108
2,312
Change from financing cash flows
Proceeds from loans and borrowings (1)
20,599
-
Repayments
(12,445)
(1,135)
Interest paid
(1,495)
(184)
Other changes
Non-cash movements
-
(108)
Interest expense
2,234
184
Foreign exchange
(279)
(7)
Balance at 31 December 2024
24,722
1,062
(1) Cash received by the Group from loans and borrowings totaled US$19,999 thousand, while US$600 thousand was paid directly from the Borrower to repay supply chain
financing arrangements.
Austral Gold Limited
87
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in US$
31 December 2024
Interest rate (%)
Maturity date (1)
Lender
Face value
Carrying value
Banco Hipotecario(2),(4)
1,552,644
1,606,306
43.50
1 August 2025
Inversiones Financieras del Sur S.A.(2)
500,000
514,750
9.00
29 January 2026
Eduardo Elsztain(2),(3)
1,700,000
1,725,925
9.00
29 January 2026
Saul Zang(2),(3)
300,000
304,575
9.00
29 January 2026
Convertible notes
564,158
612,291
9.00
15 February 2026
Banco de Crédito e Inversiones SA (BCI)
2,883,060
2,900,503
9.90
27 March 2026
Inversiones Financieras del Sur S.A.(2)
555,000
612,859
9.00
31 July 2026
Inversiones Financieras del Sur S.A.(2)
2,000,000
2,242,750
9.00
31 July 2026
Eduardo Elsztain(2)
850,000
988,243
9.00
31 July 2026
Saul Zang(2)
150,000
174,396
9.00
31 July 2026
Eduardo Elsztain(2)
850,000
947,963
9.00
31 July 2026
Saul Zang(2)
150,000
167,363
9.00
31 July 2026
Consultores Assets Management S.A.
1,000,000
1,075,500
9.00
31 July 2026
Inversiones Financieras del Sur S.A.(2)
2,000,000
2,035,389
7.00
25 September 2026
Banco de Crédito e Inversiones SA (BCI)
1,000,000
611,111
12.35
23 October 2026
Banco San Juan
1,500,000
1,500,000
8.00
20 December 2026
Santander Bank
7,000,000
7,314,423
10.17
17 July 2028
Total
24,554,862
25,334,347
(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 32
(2) Related party loans
(3) Assigned from Inversiones Financieras del Sur S.A. during the year
(4) Interest rate denominated in Argentine pesos (AR$)
28. ISSUED CAPITAL
As at 31 December
2024
2023
Fully paid ordinary shares (in thousands of US$)
109,114
109,114
Number of ordinary shares
612,311,353
612,311,353
Weighted average number of ordinary shares
612,311,353
612,311,353
Movements in ordinary share capital
Number of
ordinary shares
US$000’s
Balance at 31 December 2024 and 2023
612,311,353
109,114
Ordinary shares participate in dividends and the proceeds on winding up of the Parent Entity in proportion to the number
of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands. The ordinary shares do not have any par value.
29. ACCUMULATED LOSSES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Accumulated losses at beginning of year
(66,549)
(59,320)
Net (loss) for the year
(27,068)
(7,229)
Foreign exchange movements
(14)
-
Disposition of subsidiary with a non-controlling interest
(27)
-
Accumulated losses at end of year
(93,658)
(66,549)
Austral Gold Limited
88
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
30. RESERVES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Foreign currency translation reserve
Balance at beginning of year
235
234
Foreign exchange movements from translation of financial instruments to US dollars
66
1
Balance end of year
301
235
Business combination reserve
Balance at beginning of year
(1,406)
(1,406)
Balance end of year
(1,406)
(1,406)
Profit appropriation reserve
Balance at beginning of year
14
14
Dividend paid
-
-
Balance end of year
14
14
Total reserves
(1,091)
(1,157)
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 disposed.
Profit appropriation Reserve
Transfers up to the net income earned during the year may be transferred from accumulated losses and paid as a dividend.
31. NON-CONTROLLING INTEREST
All figures are reported in thousands of US$
As at 31 December
2024
2023
Non-controlling interest in subsidiaries comprise
Balance beginning of the year
165
179
Increase (decrease) in non-controlling interest(1)
27
-
Share of comprehensive (loss)
(6)
(14)
Sale of Subsidiary (note 13)
(186)
-
Balance end of the year
-
165
(1) During the year ended 31 December 2024, a loan provided by the Group of US$84 thousand to Sierra Blanca was capitalised, which increased the Group’s interest to
54.69% from 51%. As Sierra Blanca was sold during the year (note 13), the value of the non-controlling interest is nil at 31 December 2024.
Austral Gold Limited
89
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
32. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group’s principal financial instruments include items such as borrowings, receivables, listed equity securities, cash
and short- term deposits. These activities expose the Group to a variety of financial risks: market risk (foreign currency
risk and interest rate risk), credit risk, price risk and liquidity risk.
The Group recognises the importance of risk management and has adopted a Risk Management and Internal Compliance
and Control policy which describes the role and accountabilities of management and of the Board. The Directors manage
the different types of risks to which the Group is exposed by considering risk and monitoring levels of exposure to the
main financial risks by being aware of market forecasts for interest rates, foreign exchange rates, commodity and market
prices. The Group’s exposure to credit risk and liquidity risk is monitored through general business budgets and forecasts.
The Group holds the following financial instruments:
All figures are reported in thousands of US$
As at 31 December
2024
2023
Financial Assets
Cash and cash equivalents
3,590
1,261
Trade and other receivables
4,774
3,483
Other financial assets
3,383
6,085
Financial liabilities
Bank overdraft
199
222
Trade and other payables
14,783
22,289
Supply chain financing arrangement
-
835
Borrowings
25,334
16,108
Financial leases
1,062
2,312
a.
Market Risk
i. 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$.
At 31 December 2024, the Group was exposed to foreign exchange risk through the following financial assets and liabili-
ties denominated in currencies other than the Group’s functional currency (thousands of US$). The following significant
exchange rates have been applied.
US$
Average rate
Year-end spot rate
2024
2023
2024
2023
ARS
918.73
295.19
1,030.50
806.95
CLP
936.79
839.69
996.46
877.12
AUD
1.51
1.51
1.61
1.47
CDN
1.37
1.35
1.44
1.32
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 2024 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
90
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
Effect in thousands of US$ 31 December 2024
Profit or loss
Equity, net of tax
Strengthening
Weakening
Strengthening
Weakening
ARS (12% movement)
(230)
230
(230)
230
CLP (10% movement)
(991)
991
(991)
991
A$ (5% movement)
137
(137)
137
(137)
C$ (2% movement)
-
-
-
-
31 December 2023
Strengthening
Weakening
Strengthening
Weakening
ARS (70% movement)
(198)
198
(198)
198
CLP (10% movement)
(1,952)
1,952
(1,952)
1,952
A$ (5% movement)
289
(289)
289
(289)
C$ (1% movement)
5
(5)
5
(5)
All figures are reported in thousands of US$ 31
December 2024
Argentinian Peso
(ARS)
Chilean Peso
(CLP)
Australian Dollar
(AUD)
Canadian Dollar
(CDN)
Financial assets
Cash and cash equivalents
214
538
17
7
Trade and other receivables
78
962
24
-
Other financial assets
-
-
3,353
30
Financial liabilities
Trade and other payables
604
11,050
131
26
Borrowings
1,606
-
564
-
Financial leases
-
29
-
-
All figures are reported in thousands of US$ 31
December 2023
Argentinian Peso
(ARS)
Chilean Peso
(CLP)
Australian Dollar
(AUD)
Canadian Dollar
(CDN)
Financial assets
Cash and cash equivalents
29
14
9
42
Trade and other receivables
28
733
20
-
Other financial assets
23
-
5,774
288
Financial liabilities
Trade and other payables
278
19,482
85
28
Financial leases
-
136
-
-
ii. 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.
b.
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$.
The financial performance of the Group is significantly influenced by the market price of gold. Gold prices have expe-
rienced considerable volatility over recent years, driven by various economic, geopolitical, and market factors. As of
February 2025, gold prices have increased by more than 10% since the beginning of the year, reaching near-record levels.
The future price of gold is expected to remain volatile due to ongoing economic uncertainties, geopolitical tensions, and
changes in monetary policies by major central banks. These factors could lead to fluctuations in gold prices, which may
impact the Group’s revenue and cash flows.
The Group has resolved that for the present time production should remain unhedged. The Group considers exposure
to commodity price fluctuations within reasonable boundaries to be an integral part of the business.
Sensitivity to Changes in Commodity Prices (Gold and Silver)
The sensitivity analysis below demonstrates the after tax effect on the profit/(loss) and equity which could result if there
were changes in the gold and silver commodity prices by +/- 10% of the actual commodity prices realised by the Group
based on recent history.
Austral Gold Limited
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported
in thousands of US$
Effect on profit/loss) For the year ended
31 December
Effect on equity For the year ended 31
December
2024
2023
2024
2023
10 % increase in gold and silver prices
3,679
4,773
3,679
4,773
10 % decrease in gold and silver prices
(3,679)
(4,773)
(3,679)
4,773
c.
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
fluctuate over time.
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”.
i. 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$282 thousand
before tax and US$243 thousand after tax (2023: US$243 thousand before tax and US$206 thousand after tax). An
equal change in the opposite direction would have decreased profit or loss by US$243 thousand (2023: US$206
thousand after tax).
d.
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. Although there is a significant credit risk of concentration as the Group typically sells to one refinery,
credit risk is minimised as generally funds are collected within two days of the date of shipment, the refiner used by the
Group is an LBMA (London Bullion Market Association) Good Delivery refiner, which means it meets strict standards
for quality and responsible sourcing, and has robust compliance programs in place to ensure adherence to regulations
related to anti-money laundering, combating terrorist financing, and responsible sourcing.
e.
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 forecasted liquidity position and maintain appropriate liquidity levels.
Austral Gold Limited
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
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$
Consolidated
6 months
6-12 months
1-5 years
> 5 years
Total
31 December 2024
Financial liabilities
Bank overdraft
199
-
-
-
199
Trade and other payables
14,783
-
-
-
14,783
Borrowings
2,154
4,620
20,382
-
27,156
Leasing
462
344
405
-
1,211
Total 31 December 2024 liabilities
17,598
4,964
20,787
-
43,349
31 December 2023
Financial liabilities
Bank overdraft
222
-
-
-
222
Trade and other payables
22,286
-
3
-
22,289
Supply chain financing arrangement
835
-
-
-
835
Borrowings
10,617
3,576
2,748
-
16,941
Leasing
699
653
1,256
-
2,608
Total 31 December 2023 liabilities
34,659
4,229
4,007
-
42,895
33. COMMITMENTS AND CONTINGENCIES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Operating leases not recognised as liabilities
-
-
Exploration commitment at the reporting date and recognised as liabilities
-
-
Capital expenditure not recognised as liabilities
641
383
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$ 641 thousand (2023: US$383 thousand) during the next year to maintain legal
rights to all of its properties.
Toll Processing Agreement
On 30 December 2024, the Group’s subsidiary, Casposo Argentina Mining Ltd. (“Casposo) and Challenger Gold (“Chal-
lenger”) executed a Toll Processing Agreement (“the Agreement”).
Under the Agreement, Casposo will process mineralised material from Challenger’s Hualilan project at Casposo’s Plant,
in San Juan, Argentina.
Material Terms of the Agreement
• The parties agree to set up a technical and advisory committee made up of up to three professionals from each party.
• Casposo to use best commercial efforts to finance, directly or through third parties, the funds required for the refur-
bishment and commercial startup of the Casposo Plant on or before July 31, 2025. (note 27)
• Operator: The Casposo Plant will be operated by Casposo´s local branch in Argentina, named Casposo Argentina
Ltd. Sucursal Argentina.
• Guaranteed throughput Tonnage: guaranteed toll treatment of 150,000 tons available to Challenger per year, with a
guaranteed toll treatment capacity available to Challenger of 450,000 tons over a three (3) year period.
Consideration:
As part of this agreement US$2,000 thousand was paid in advance by Challenger to the Group. The amount will be
required to be repaid if certain conditions are not met, including the plant not being ready for commercial operations by
31 July 2025, or the plant not being capable of meeting operational targets.
Austral Gold Limited
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
34. SUBSIDIARIES
Country of Incorporation
% owned as at 31 December
2024
2023
Subsidiaries
Guanaco Mining Company Limited
British Virgin Islands
100.000
100.000
Guanaco Compañía Minera SpA
Chile
99.998
99.998
Minera Mena Chile Ltda
Chile
99.990
99.990
SCM Pampa Buenos Aires Ltda
Chile
99.990
99.990
Minera Celeste Chile Ltda
Chile
99.990
99.990
Minera Serena Chile Ltda
Chile
99.990
99.990
SMC Montezuma Ltda
Chile
99.990
99.990
Austral Gold Chile SpA
Chile
100.000
100.000
Austral Gold Argentina S.A.
Argentina
99.970
99.970
Sierra Blanca S.A.
Argentina
-
51.000 (1)
Austral Gold North America Corp.
United States
100.000
100.000
Austral Gold Canada Limited
Canada
100.000
100.000
Casposo Argentina Mining Limited
Canada
100.000
100.000
Austral Gold Casposo Limited
Argentina
100.000
-
Revelo Resources Corp.
Canada
100.000
100.000
Minera Cuyo S.A.
Argentina
50.000
-
(1) Note 13
35. PARENT ENTITY DISCLOSURES
All figures are reported in thousands of US$
As at 31 December
2024
2023
Result of parent entity
(Loss) for the year
(28,617)
(18,608)
Foreign exchange movements from translation of financial statements to US$
66
1
Total comprehensive (loss) for the year
(28,551)
(18,607)
Financial position of parent entity
Current assets
400
4,586
Total assets
37,963
59,970
Current liabilities
1,126
18,832
Total liabilities
25,397
18,832
Net assets
12,566
41,138
Total equity of the parent entity comprising of:
Issued capital
109,114
109,114
Accumulated losses
(96,187)
(67,571)
Foreign currency translation reserve
(374)
(418)
Profit appropriation reserve
(13)
(13)
Total equity
12,566
41,138
Austral Gold Limited
94
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
36. RELATED PARTY TRANSACTIONS
37.1 KMP holdings of shares and share options at 31 December 2024
• Mr. Eduardo Elsztain holds 461,316,134 shares directly and indirectly in Austral Gold Limited. (31 December 2023—
461,294,560 shares)
• Mr. Saul Zang holds 1,640,763 shares directly in Austral Gold Limited. (31 December 2023— 1,640,763 shares)
• Mr. Pablo Vergara del Carril holds 68,119 shares directly in Austral Gold Limited. (31 December 2023—68,119)
• Mr. E. Elsztain and Mr. S. Zang are Directors of IFISA which holds 380,234,614 shares (31 December 2023—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 2023—38,859,957)
• Mr. Stabro Kasaneva holds 7,881,230 shares indirectly in Austral Gold Limited. (31 December 2023—7,881,230)
• Mr. Ben Jarvis holds 600,000 shares directly in Austral Gold Limited (31 December 2023—600,000)
• Mr. Jose Bordogna holds 126,495 shares directly in Austral Gold Limited. (31 December 2023—126,495)
36.2 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$
For the year ended 31 December
2024
2023
Short-term benefits
1,222,545
1,516,867
Other long term benefits
34,539
27,382
Termination benefits
-
71,762
Total
1,257,084
1,616,011
36.3 Other transactions with related parties
On 25 June 2024, the Company sold 5,458,833 previously issued common shares of Unico (“Unico Shares”) to Mr.
Elsztain and 963,323 Unico Shares to Mr. Zang, at a price per Unico Share of A$0.16 per share. Total proceeds from the
transaction was US$682,393.
On 25 July 2024, the Company entered into an agreement to sell an additional 8,139,023 Unico Silver shares to its largest
shareholder, Inversiones Financieras del Sur SA (IFISA). Two board members, Eduardo Elsztain and Saul Zang are also
shareholders and directors of IFISA. The sale was completed on 2 August 2024 for proceeds of US$987,869.
On 31 December 2024, Mr. Elsztain purchased 21,574 shares of the Company in the open market at a cost of US$275
(A$475).
In 2024, the Company received US$46,000 (2023: US$30,000) from Unico Silver Limited for providing accounting and
administrative services for one of its Argentinean subsidiaries.
Related party transactions regarding loans are disclosed in note 27, Loans and Borrowings.
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 2024 amounted to US$75,224 (2023: US$80,922). As at 31 December 2024, the
Group owed ZBV US$41,508 (31 December 2023-US$5,990).
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 2024 a total of
US$315,058 was charged to and reimbursed by the Company (2023: US$61,975) in regard to financing fees and loan
interest, IT services support, HR services, software licenses building/office expenses and other fees at 31 December
2024, the Group owed these companies US$$44,131 (31 December 2023-US$7,285).
During 2023 and 2024, the Group entered into loans with Inversiones Financieras del Sur S.A., Consultores Assets
Management S.A., Banco Hipotecario, and it’s directors, Eduardo Elsztain and Saul Zang. Terms of the loans are described
in note 28 and the respective amounts owed and interest expense are disclosed in the following table:
Austral Gold Limited
95
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
All figures are reported in US$
For the year ended 31 December
2024
2023
Balance due
Interest expense
Balance due
Interest expense
Lender
Inversiones Financieras del Sur S.A.(1)
5,405,748
283,921
2,621,827
88,797*
Consultores Assets Management S.A.(2)
1,075,500
199,492
-
-
Banco Hipotecario(3)
1,606,306
437,469
-
-
Eduardo Elsztain
3,662,131
181,475
1,780,656
80,656
Saul Zang
646,333
32,025
314,309
14,309
Total
12,396,018
1,134,382
4,716,792
183,762
1. Includes US$22,525 of interest paid during 2023.
2. Includes US$123,992 of interest paid during 2024.
3. Includes US$383,808 of interest paid during 2024, and gained US$186,572 of foreign exchange on repayment of the original loan and recorded US$60,355 of foreign
exchange on the current loan during 2024 as the loan is in Argentine pesos.
36.4 Ultimate parent entity
The Parent Entity is controlled by IFISA with a 62.1% in Austral Gold Limited and is incorporated in Uruguay. As IFISA is
a private company, they do not produce consolidated financial statements available for public use.
The ultimate beneficial owner of IFISA is Eduardo Elsztain.
36.5 Board positions with Companies that we hold equity interests
Mr. Bordogna, CFO of Austral Gold Limited is a director of Unico Silver Limited (note 13).
37. 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.
38. SUBSEQUENT EVENTS
38.1 On 3 January 2025, the Group received US$2,000 thousand in accordance with the Toll Treatment Agreement entered
into between the Group’s subsidiary Casposo Argentina Mining Ltd. and Challenger Gold Limited (note 33).
38.2 On 28 February 2025, IFISA and the Group executed an assignment, assumption and amendment agreement with
Eduardo Elsztain to assign US$1,700,000 of the funds advanced under a US$3,500,000 unsecured credit facility
agreement with IFISA, effective 30 August 2024, the date of the facility. Additionally, IFISA and the Group entered into a
similar agreement with Saul Zang to assign $300,000 of the funds advanced under the same credit facility agreement.
38.3 On 14 March 2025, the Group received the second installment of US$2,500 thousand under the loan agreement from
Bank San Juan to refurbish the Casposo plant.
39. 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 2024, 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:
• reclassify impairment loss on exploration and evaluation assets of US$3,891 thousand from Other expenses.
• reclassify gain on sale of equipment and gain on sale of inventory of US$122 thousand from proceeds in other income
and cost in other expenses.
• reclassify the net present value adjustment to the mine closure provision of US$138 thousand from gross income
and costs.
Changes were made to the Consolidated statement of financial position to:
• reclassify US$222 thousand of bank overdraft from Cash and cash equivalents.
• reclassify US$835 thousand of Supply chain financing arrangement from Trade and other payables.
Austral Gold Limited
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
Changes were made to the Consolidated statement of cash flow to:
• reclassify the Bank overdraft from trade and other payables.
• reclassify Supply chain financing arrangements from trade and other payables.
• to segregate non-cash charges to loss on foreign exchange, employee entitlements and interest paid.
Previous financial statement captions
31 December 2023
(Prior) $000’s
Reclassification
31 December 2023
(Current) $000’s
Consolidated profit or loss and other comprehensive income
Other income
3,853
(122)
3,731
Other expenses
(8,889)
4,103
(4,786)
Impairment loss on exploration and evaluation assets
-
(3,981)
(3,981)
Finance income
4,422
(138)
4,284
Finance costs
(1,678)
138
(1,540)
(2,292)
-
(2,292)
Consolidated statement of financial position
Cash and cash equivalents
1,039
222
1,261
Bank overdraft
-
(222)
(222)
Trade and other payables
(23,121)
835
(22,286)
Supply chain financing arrangement
-
(835)
(835)
(22,082)
-
(22,082)
Consolidated statement of cash flows
Increase (decrease) in trade and other payables
6,048
(1,085)
4,963
Net Finance charges
1,511
(116)
1,395
Loss from foreign exchange
-
319
319
(Decrease) / increase in supply chain financing arrangement
-
835
835
Provision for reclamation and rehabilitation
(126)
252
126
Non-cash employee entitlements
(20)
980
960
(Decrease) in employee entitlements
(1,060)
(980)
(2,040)
Other interest and financial expenses paid
-
(205)
(205)
6,353
-
6,353
Austral Gold Limited
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
39.1
Basis of consolidation
39.2
Revenue recognition
39.3
Goods and services tax (GST)/ Value added tax (VAT)
39.4
Foreign currency
39.5
Mine properties
39.6
Exploration and evaluation expenditure
39.7
Property, plant and equipment
39.8
Cash and cash equivalents
39.9
Income tax
39.10
Inventories
39.11
Trade and other receivables
39.12
Financial assets
39.13
Trade and other payables
39.14
Interest bearing liabilities
39.15
Provisions
39.16
Leases
39.17
Impairment of non-financial assets
39.18
Contributed equity
39.19
Earnings per share
39.20
Borrowing costs
39.21
Employee leave benefits
39.22
Segment reporting
39.1 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 34 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
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Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
39.2 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.
39.3 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.
39.4 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.
39.5 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
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.
39.6 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:
i. such costs are expected to be recouped through successful development and exploitation of the area of interest or
alternatively, by its sales; or
ii. 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.
Austral Gold Limited
99
Annual Report 2024
NOTES TO THE FINANCIAL STATEMENTS
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 commissioned based on technical and commercial viability,, 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.
39.7 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. . Assets that are idle or no longer ready for use are not depreci-
ated but are separately tested for impairment and where the recoverable value is less than the book value of the asset,
an impairment is recorded.
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual
values, and is generally recognised in profit of loss.
The estimated useful lives for property, plant and equipment for current and comparative periods are as follows:
i. Underground mine development, plant ,mining equipment, machinery and equipment, building and heap: over the life
of the area of interest on a production output basis
ii. Office equipment, vehicles and other: straight-line basis over 2-3 years
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.
39.8 Cash and cash equivalents Cash includes:
i. cash on hand and at call deposits with banks or financial institutions; and
ii. cash equivalents which includes other short-term highly liquid investments with original maturities of three months or
less, net of bank overdraft.
39.9 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.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
i. 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
ii. 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.
iii. 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 deduct-
ible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
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NOTES TO THE FINANCIAL STATEMENTS
iv. 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
v. 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.
The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and
accounts for it as a current tax when it is incurred.
39.10 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.
39.11 Trade and other receivables
Trade accounts receivable, amounts due from related parties and other receivables represent the principal amounts
due at the date of the financial position plus accrued interest and less, where applicable, net of provisions for doubtful
accounts and are measured at amortised costs.
With respect to VAT, included as other receivables, the Group records an expected credit loss where applicable, noting
that VAT in Argentina can generally be recovered only against VAT charged on sales.
39.12 Financial assets
Financial assets are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
Financial assets (unless it is a trade receivable without a significant financing component) are initially measured at fair
value plus or minus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue.
39.13 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.
39.14 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 existing right
to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified
as non-current.
39.15 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.
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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.
39.16 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.
39.17 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.
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.
39.18 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.
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NOTES TO THE FINANCIAL STATEMENTS
39.19 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
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.
39.20 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.
39.21 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.
39.22 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.
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Entity name
Body corporate,
partnership or trust
Place
incorporated/
formed
% of share capital
held directly or
indirectly by the
Company in the
body corporate
Australian
or foreign tax
resident
Jurisdiction
for foreign tax
resident
Austral Gold
Limited
Body corporate
Australia
Australian
N/A
Guanaco Mining
Company
Body corporate
British Virgin
Islands
100
Foreign
British Virgin
Islands
Guanaco
Compañía Minera
Body corporate
Chile
100
Foreign
Chile
Austral Gold
Argentina
Body corporate
Argentina
100
Foreign
Argentina
Austral Gold North
America Corp.
Body corporate
US
100
Foreign
US
Austral Gold
Canada Limited
Body corporate
Canada
100
Foreign
Canada
Casposo Argentina
Mining Ltd.
Body corporate
Canada
100
Foreign
Canada/Argentina
Revelo Resources
Corp.
Body corporate
Canada
100
Foreign
Canada
Minera Mena Chile
Ltda.
Body corporate
Chile
100
Foreign
Chile
Austral Gold Chile
Spa
Body corporate
Chile
100
Foreign
Chile
SCM Pampa
Buenos Aires
Body corporate
Chile
100
Foreign
Chile
Minera Celeste
Chile Ltda.
Body corporate
Chile
100
Foreign
Chile
Minera Serena
Mining Chile Ltda.
Body corporate
Chile
100
Foreign
Chile
SCM Montezuma
Ltda.
Body corporate
Chile
100
Foreign
Chile
Minera Cuyo
Body corporate
Argentina
50
Foreign
Argentina
CONSOLIDATED ENTITY
DISCLOSURE STATEMENT
31 DECEMBER 2024
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31 DECEMBER 2024
Austral Gold Limited (the “Company”) is a company limited by shares that is incorporated and domiciled in Australia.
BASIS OF PREPARATION
KEY ASSUMPTIONS AND JUDGEMENTS
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each entity which is included in the Consolidated Entity
Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident, “Australian resident” has the
meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as the determina-
tion of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which
could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
• Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxa-
tion’s public guidance in Tax Ruling TR 2018/5.
• Foreign tax residency
The consolidated entity has applied current legislation and where available judicial precedent in the determination of foreign tax resi-
dency. Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination
of tax residency to ensure applicable foreign tax legislation has been complied with.
Branches (permanent establishments)
Foreign branches of Australian subsidiaries are not separate level entities and therefore do not have a separate residency for Australian
tax purposes. Generally, the Australian subsidiary that the branch is a part of will be the relevant tax resident, rather than the branch
operations.
Additional disclosures on the tax status of Australian subsidiaries having a foreign branch with a taxable presence in that jurisdiction
have been provided where relevant.
CONSOLIDATED ENTITY
DISCLOSURE STATEMENT
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DIRECTORS’
DECLARATION
IN THE DIRECTORS’ OPINION:
1. In the opinion of the directors of Austral Gold Limited (“the Company”)
a. the consolidated financial statements, notes that are set out on pages 67 to 103 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 2024
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
b. the Consolidated entity disclosure statement as at 31 December 2024 set out on pages
104 to 105 is true and correct; and
c. 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 34 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 2024.
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 2025
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107
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.
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 2024 there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPM_INI_01
KPMG
Jessica Dillon
Partner
Sydney
28 March 2025
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
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INDEPENDENT
AUDITOR’S
REPORT
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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.
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 gives a true and
fair view, including of the Group’s
financial position as at 31 December 2024
and of its financial performance for the
year then ended, in accordance with the
Corporations Act 2001, in compliance with
Australian Accounting Standards and the
Corporations Regulations 2001.
The Financial Report comprises:
•
Consolidated statement of financial position as at 31
December 2024
•
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
•
Consolidated entity disclosure statement and
accompanying basis of preparation as at 31
December 2024
•
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.
Basis for opinion
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.
109
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110
Material uncertainty related to going concern
We draw attention to Note 3, “Going Concern” in the Financial Report. The 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 we evaluated the extent of
uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of
going concern. This included:
•
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, including capital
expenditures, for feasibility, timing, consistency of relationships and trends to the Group’s
historical results, particularly in light of recent 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 client, 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 assess the level of associated uncertainty resulting from
renegotiation of existing debt facilities, and negotiation of additional/revised funding
arrangements; 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 principle 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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111
Carrying value of Guanaco/Amancaya mine assets and property, plant and equipment
(US$27,3 million)
Refer to Note 21 “Mine properties”, 22 “Property, plant and equipment”, 39.5 “Mine Properties”
and 39.7 “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 (37%) of the Group’s
total assets. The Group assessed the
recoverable value of the Guanaco/Amancaya
cash generating unit (CGU) using a fair value
less costs of disposal model, to assess the
carrying value for impairment. The carrying
value of the CGU is a Key Audit Matter due to:
•
The high level of judgement used in
evaluating key assumptions applied by the
Group in its Guanaco/Amancaya CGU
model, including:
•
Forecast gold and silver prices
(commodity prices);
•
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;
•
The specific discount rate applied in the
model.
These assumptions necessitate additional
scrutiny by us due to:
•
The inherent uncertainties in auditing
forward looking assumptions;
•
The consistency of application of
assumptions and the fluctuations in
forecast gold and silver (commodity prices)
increasing the risk of inaccurate forecasting;
and
•
The sensitivity of assumptions in the
Group’s Guanaco/Amancaya CGU model
such as commodity 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:
•
Evaluating the fair value less costs of disposal
method used by the Group against the
requirements of the Accounting Standards;
•
Working with our valuation specialists:
-
we critically evaluated the Group’s key
assumptions used to determine the
recoverable amount of the
Guanaco/Amancaya CGU including
commodity prices, production costs and
discount rate using our knowledge of the
industry and Group, publicly available data
of comparable entities and published
forecast price expectations of industry
commentators, adjusted for factors
specific to the Group and its industry;
-
we considered the sensitivity of the
Guanaco/Amancaya CGU model by
varying key assumptions including,
commodity prices, production costs and
discount rate within a reasonably possible
range to identify those assumptions at
higher risk of impairment, inconsistency in
application and to focus our further
procedures;
-
we checked relevant forecast production
costs, 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
industry trends;
-
we assessed the level of resources and
reserves capable of being produced
economically by examining mine closure
plans and the Group’s Reserve Report
with the Group’s key operational and
finance personnel;
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112
In addition to the above, the Group recorded an
impairment charge of $19,255 thousand against
mine properties and property plant and
equipment, resulting from the ceasing of
operations at the Amancaya underground mine.
This further increased our audit effort in this key
audit area.
-
we assessed the historical accuracy of
budgeting and forecasting by the Group to
inform our evaluation of forecasts
incorporated in the Guanaco/Amancaya
CGU model, including production costs;
-
we evaluated the Group’s impairment of
Amancaya assets based on the Board
approved plan, our independent
assessment of the recoverable value and
against accounting standard requirements.
We checked the impairment charge
against the recorded amount disclosed.
•
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$19.5 million)
Refer to Note 23 “Exploration and evaluation expenditure” and 39.6 “Exploration and evaluation
expenditure”, to the Financial Report
The key audit matter
How the matter was addressed in our audit
Carrying value of Exploration and evaluation
assets (‘E&E’) is a key audit matter due to:
•
the significance of the balance (27%) to the
Group’s total assets;
•
the greater level of audit effort to evaluate
the Group’s application of accounting
standard requirements.
During the year, the Group recorded an
impairment charge of $8,836 thousand against
E&E assets resulting from abandoning
properties, not meeting minimum expenditure
requirements under relevant licences or an
inability of the Group to fund the continuation of
activities for certain properties. We involved
senior team members to challenge the Group’s
determination of indicators identified associated
with E&E assets and impairment recorded by
the Group thereon.
We focused on:
•
impairment indicators that may draw into
question the commercial continuation of
E&E activities for the areas of interest
Our procedures included:
•
evaluating the Group’s accounting policy and
approach to assess E&E assets for
impairment, including the identification of
impairment indicators against the criteria and
requirements in the accounting standards;
•
evaluating the Group’s determination of areas
of interest for consistency with the definition
in the accounting standards, 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 tested for
compliance with conditions, such as minimum
expenditure requirements, on a sample of
licenses. This also included testing where
minimum expenditure requirements had not
been met and assessing the impact to E&E
assets impaired;
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Annual Report 2024
where significant capitalised E&E assets
exist;
•
documentation available regarding 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;
•
the impact of changes in gold and silver
prices to the Group’s strategy and
intentions;
•
the Group’s strategy and intentions,
including abandonment; and
•
the ability of the Group to fund the
continuation of activities.
•
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 or abandonement
decisions. 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
forecast gold and silver prices to the Group’s
determination underlying their decision for
commercial continuation of activities;
•
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. This also included testing the
Group’s inability to fund the continuation of
activities for certain properties and assessing
the impact to E&E assets impaired;
•
Challenging the Group’s assessment of
impairment indicators and impairment
recorded using the results of the procedures
above and against the requirements of the
accounting standards. We checked the
impairment charge recognised against the
recorded amount disclosed.
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.
113
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114
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.
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 in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group, and in compliance
with Australian Accounting Standards and the Corporations Regulations 2001
•
implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the
financial position and performance of the Group, and that 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://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf This description forms part of our Auditor’s
Report.
Austral Gold Limited
114
Annual Report 2024
115
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report
of Austral Gold Limited for the year ended
31 December 2024, complies with
Section 300A of the Corporations Act
2001.
Directors’ responsibilities
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 41 to 46 of the Directors’ report for the year
ended 31 December 2024.
Our responsibility is to express an opinion as to whether
the Remuneration Report complies in all material
respects with Section 300A of the Corporations Act
2001, based on our audit conducted in accordance with
Australian Auditing Standards.
KPMG
Jessica Dillon
Partner
Sydney
28 March 2025
Austral Gold Limited
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Annual Report 2024
ADDITIONAL
INFORMATION
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 australgold.com.
STATEMENT OF ISSUED CAPITAL
As at 28 February 2025 the total issued capital of Austral Gold Limited was 612,311,353 ordinary shares. 548,359,530 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. 63,951,823 shares were quoted on the Toronto Venture Exchange under the code AGLD, of which
4,765,313 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 28 February 2025
Size of Holding
Holders
Shares held
% of issued capital
1-1000
1,832
715,672
0.12%
1,001 - 5,000
738
2,355,823
0.38%
5,001 - 10,000
257
2,232,119
0.36%
10,001 - 100,000
497
20,362,808
3.33%
>100,001
184
586,644,931
95.81%
3,508
612,311,353
100%
There were 1,518 shareholders with less than a marketable parcel (basis price of A$0.046) as at 28 February 2025.
SUBSTANTIAL SHAREHOLDERS
The Company has been notified of the following substantial shareholdings as at 28 February 2025:
Registered Holder
Beneficial Holder
Shares Held
HSBC Custody Nominees
(Australia) Limited
Inversiones Financieras
Del Sur SA (IFISA)
332,576,152
Citicorp Nominees Pty Limited
Inversiones Financieras
Del Sur SA (IFISA)
47,658,462
HSBC Custody Nominees
(Australia) Limited
Eduardo Elsztain
42,221,564
HSBC Custody Nominees
(Australia) Limited
Guanaco Capital
Holding Corp
38,859,956
Austral Gold Limited
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Annual Report 2024
TWENTY LARGEST SHAREHOLDERS
Rank
Name
No. of shares
% of issued capital
1
EDUARDO SERGIO ELSZTAIN
461,316,134
75.34%
2
MICHAEL D WINN
15,502,212
2.53%
3
EMX ROYALTY CORPORATION
9,381,770
1.53%
4
HSBC CUSTODY NOMINEES
7,028,529
1.15%
5
STABRO KASANEVA
7,881,230
1.29%
6
BNP PARIBAS NOMINEES
7,072,034
1.15%
7
CITICORP NOMINEES PTY LIMITED
3,698,808
0.60%
8
MRS ANNA VORONTSOVA
2,349,854
0.38%
9
SAUL ZANG
1,640,763
0.27%
10
MR MICHAEL WEHBE
1,438,889
0.23%
11
MR PHILIP BOMFORD
1,420,000
0.23%
12
MARIO SZOTLENDER
1,162,421
0.19%
13
ASOCIACION ISRAELITA ARGENTINA
1,158,265
0.19%
14
MR FAZIL PINEDA SHAFURDIN, MS SARAH SHARFUDIN PINEDA,
MR SHAFIQUE SHARFUDIN PINEDA
1,113,758
0.18%
15
FUSION ELECTRICS (AUST) PTY
1,000,000
0.16%
16
MR DEAN MICHAEL MATHEWS
1,000,000
0.16%
17
MRS NICOLA PAULINE COURT
900,000
0.15%
18
MR POH SENG TAN
800,000
0.13%
19
PHILLIPS BADER SUPER HOLDINGS PTY LTD
720,051
0.12%
20
MR ALAN JASON DOBLE
701,961
0.11%
Total
525,064,667
85.75%
Other
87,246,686
14.25%
Total Shares on issue
612,311,353
100%
*Beneficial holdings
Austral Gold Limited
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Annual Report 2024
www.australgold.com