More annual reports from Barton Gold Holdings Limited:
2023 ReportPeers and competitors of Barton Gold Holdings Limited:
Castle Minerals LimitedBarton Gold Holdings Limited
ACN 633 442 618
Annual Report
for the year ended 30 June 2023
Barton Gold Holdings Limited
Annual Report - 30 June 2023
Contents Page
Corporate Directory
Chairman’s Letter
Directors' Report
Auditor’s Independence Declaration
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor's Report to the Members
Additional Information
Tenement Schedule
Annual Mineral Resource Statement
Statement of Risks
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Barton Gold Holdings Limited
Corporate Directory
Corporate Directory
Board of Directors
Kenneth Williams
Alexander Scanlon
Christian Paech
Graham Arvidson
Company Secretary
Shannon Coates
Independent Non-Executive Chair
Managing Director & Chief Executive Officer
Independent Non-Executive Director
Independent Non-Executive Director
Registered office
Level 4, 12 Gilles Street
Adelaide SA 5000
Email: contact@bartongold.com.au
Website: www.bartongold.com.au
Principal place of business
Level 4, 12 Gilles Street
Adelaide SA 5000
Email: contact@bartongold.com.au
Website: www.bartongold.com.au
Phone: (08) 7073 6368
Auditors
BDO Audit Pty Ltd
Level 7, 420 King William Street
Adelaide SA 5000
Share registry
Automic Group
Level 5, 126 Phillip St
Sydney NSW 2000
GPO Box 5193
Sydney NSW 2001
Website: www.automicgroup.com.au
Home exchange
Australian Securities Exchange Ltd
Level 40
152-158 St Georges Terrace
Perth WA 6000
ASX Code: BGD
3
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Dear Investor
On behalf of the board of Barton Gold Holdings Limited (Barton or the Company), I am delighted to present this
year’s Annual Report. The year ended 30 June 2023 was our second full year as a publicly listed company, and
one in which Barton has taken significant strides in its vision for large-scale South Australian gold development.
Our core focus has been the methodical progression of exploration activities geared toward unlocking the
regional structural context, and the considerable gold potential, of the central Gawler Craton. In parallel, we
have continued the corporate evolution necessary to meet this challenge now and in the future.
The Review of Operations, included in the Directors’ Report herein, lays out in greater detail several
achievements and activities completed during the 2023 financial year in support of this mission.
However, it bears noting in brief some of those specific achievements which I believe have in many respects
set Barton apart from the crowd as to its character and institutional potential. These include, in particular:
• a focus on creative asset monetisation initiatives, including surplus asset disposals and a mill cleanout,
which (so far) places Barton on track to generate nearly $10 million in additional, non-dilutive cash over the
course of the 2023 and 2024 financial years;
•
•
•
•
the material outperformance of our initial public offering (IPO) budget, with 30 June 2023 cash more than
$5 million higher than forecast owing to optimised exploration activities and asset monetisation;
the cost-efficient growth of our large-scale Tunkillia Project where on 26 April 2023 Barton added
189,000oz for only $12 / oz (all in), bringing its total Mineral Resources to 1.15 Million ounces gold;
following the above, the completion during June 2023 of an oversubscribed $3.5 million placement to
several international institutional investors on favourable terms and with modest dilution of only 7.35%; and
the completion in July 2023 of the oversubscribed $1.2 million Share Purchase Plan which allowed all
existing Barton shareholders to participate in our capital raising on the same terms as institutional investors.
This opportunistic capital raising, led internally by the Company with minimal capital raising expenses and
accomplished during exceedingly difficult market conditions, reflects a strong endorsement and increasing
international awareness of Barton’s unique opportunity to develop large-scale gold production on a staged,
lower-risk and lower-cost strategy. It also leaves Barton very well capitalised to advance its work at pace, and
to maintain its strategic long-term decision making focus.
Finally, it bears noting that, for each of the past two financial years, Barton’s administrative costs (including
salaries) have been covered 100% by asset monetisation initiatives. This is an extraordinary accomplishment
for companies of our nature, and reflects our team’s focus on protecting shareholders from dilution.
With approximately $10 million in cash on the balance sheet at 30 June 2023, and potentially an additional $4m
gold in concentrates on hand but not reflected in that cash balance, we move forward with significant
momentum, a clear plan, and a dedicated team of project developers and core funding to deliver our strategy
for the 2024 financial year. Together, these drive an exciting vision for both Barton and for the State of South
Australia as we pursue our mission to build South Australia’s largest independent gold producer.
I look forward to reporting to you as we move forward with the delivery of this plan and, on behalf of the Board,
I would like to extend my thanks to our growing base of international shareholders for their continuing support.
Yours faithfully,
Kenneth Williams
Independent Non-Executive Chair
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Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Directors' Report
The directors present their report, together with the financial statements, on the consolidated entity comprising
Barton Gold Holdings Limited (the Company or Barton) and its controlled entities (the Group) for the financial
year 1 July 2022 to 30 June 2023.
Directors
The following persons were directors of Barton Gold Holdings Limited during the whole of the financial year and
up to the date of this report unless otherwise stated.
Kenneth Williams
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose (retired on 30 June 2023)
Company Secretary
Shannon Coates has held the role as Company Secretary since 7 January 2021.
Principal Activities
During the year, the Group focussed on a series of exploration programs at its Tarcoola and Tunkillia and
projects, and asset monetisation initiatives at its Challenger project, in South Australia.
Dividends
No dividends have been declared or paid during the financial year (2022: $nil).
Operating Results and Financial Position
Loss after income tax for the year ended 30 June 2023 is $5.678 million (2022: net loss after income tax $4.105
million).
Review of Operations
In its second full year as an ASX-listed company Barton has announced an increase in the JORC Mineral
Resource Estimate (MRE) at the Tunkillia Gold Project’s (Tunkillia) 223 Deposit while also advancing work
programs to map the regional architecture of the Tarcoola Gold Project (Tarcoola) where Barton is pursuing
field of prospective targets in a high-grade historical producing district. Barton has also completed several
corporate initiatives which have generated nearly $1.8 million cash proceeds from gold and surplus equipment
sales and accommodation hire, and more than $1.4 million in corporate and exploration grant funding. Barton
has also recently produced approximately 11 tonnes of high-grade gold concentrates for which preliminary
assays have indicated a contained value of more than $4 million gold at current Australian dollar gold prices
(being approximately 1,400oz Au). Barton is completing further sampling analyses on these concentrates, which
are not recorded on the Company’s balance sheet pending greater certainty as to the final assay values for
contained gold, the recoverability of the contained gold, and realisable sale terms for the concentrates.
Exploration
On 25 July 2022, the Company announced multiple high-grade drilling assays that infilled the Perseverance
West gold zone (adjacent to Tarcoola’s Perseverance open pit mine), confirming strike and depth extensions of
the southern end of the open pit. Subsequently, on 22 August 2022, the Company announced that assays from
a further three step-out drill holes had extended this Perseverance West gold zone by a further ~50m.
On 5 September 2022, the Company announced the results of May / June 2022 drilling program at Tunkillia,
confirming the existence of another local satellite gold zone at the ‘Area 51’ prospect comprising 500 metres
mineralised strike and significantly expanding the mineral footprint of Tunkillia. This was followed shortly
thereafter, on 7 September 2022, with the start of drilling programs targeting Tunkillia Mineral Resources growth.
During this drilling program, on 3 October 2022, the Company announced that it had been awarded new
tenement EL6845 at Tunkillia and further, on 7 November 2022, the Company announced it had been awarded
EL6860 at Tarcoola which greatly expanded Barton’s strategic footprint around emerging target zones.
During early 2023 the Company concluded major drilling programs at Tunkillia, with the completion of 2,201m
diamond drilling (plus 602m of reverse circulation (RC) and mud rotary pre-collars) announced on 23 January
2023 and the completion of 11,840m RC drilling announced on 15 February 2023.
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Barton Gold Holdings Limited
Directors’ Report
30 June 2023
On 15 December 2022 and 25 January 2023, the Company announced the results for the majority of assays
from Tunkillia RC drilling programs, identifying multiple broad (20m+ down hole width) intersections in previously
untested areas outside the prior (2020) MRE block model and ~25 – 150m below the 2020 MRE open pit.
On 20 March 2023 the Company announced the final assays for diamond and RC drilling Tunkillia’s 223 Deposit,
identifying further broad and high-grade intersections in key northern targets sitting outside the 2020 MRE block
model, and up to 150m below the 2020 open pit model.
On 19 April 2023 the Company announced further diamond and RC drilling assays results from Tunkillia‘s Area
51 prospect, extending Area 51 to ~700m strike length and identifying a significant 40 gram-metre ‘core’.
Finally, on 26 April 2023 the Company announced an updated MRE for Tunkillia’s 223 Deposit, which included
a ~189,000oz Au increase achieved at an all-in cost of only A$12 per additional ounce, bringing total Mineral
Resources to 1.15 Million ounces Au (38Mt @ 0.94 g/t Au).
Corporate
On 14 July 2022 the Company announced the establishment of a new headquarters in Adelaide, South Australia
supported by a 12 month South Australia Landing Pad (SALP) grant providing up to $80,000 funding.
On 11 November 2022 the Company announced the sale of surplus mine camp assets from its Central Gawler
Camp for $725,000.
On 20 December 2022 the Company announced the completion of a cleanout and preservation program at the
Central Gawler Mill, which recovered more than 10 tonnes of gold bearing materials from the gold room and
gravity circuit. ~11 tonnes of concentrates containing more than $4 million gold have since been prepared.
On 28 March 2023 the Company announced it had sold the balance of gold recovered during a prior gold room
cleanout to ABC Bullion, selling a further 164.8 ounces of gold for $490,628.
On 11 April 2023 the Company announced an R&D partnership with SensOre Ltd (ASX:S3N) (SensOre) to adapt
its artificial intelligence and machine learning technologies to South Australia’s geological setting, with an
exclusive 10 year license to use the technology for gold and copper exploration over a 60,000km2 area.
On 1 June 2023 the Company announced that an independent valuation report of the Central Gawler Mill and
associated site infrastructure, commission for insurance purposes, had assessed their value at over $100 million
on an ‘as new’ replacement value basis, or over $50 million on an ‘as is’ indemnity value basis.
On 26 June 2023 the Company announced the completion of an oversubscribed $3.5m placement, which
included several international institutional and sophisticated investors, issuing 14 million shares at a price of
$0.25 per share, representing a discount of only ~5.66% to the last traded price of $0.265 on the day before the
placement was announced (19 June 2023), and minimal share dilution of only ~7.35%.
Matters Subsequent to the End of the Reporting Period
Exploration
On 14 August 2023 the Company announced the completion of a major regional seismic program at Tarcoola,
led by industry leader HiSeis, with the goal to develop a higher resolution model of the near surface (0-500m
depth) structure across a ~15km long zone prospective for potential repeats of the Perseverance Mine’s
mineralisation. The analysis of this survey is expected to be completed prior to the end of the 2023 calendar
year.
On 30 August 2023 the Company announced the mobilisation of another major drilling program at Tunkillia, with
an initial ~7,500m program designed to target additional MRE growth in the strike extensions of the 223 Deposit.
On 8 September 2023 the Company announced the start of diamond drilling on the Perseverance West gold
zone at Tarcoola’s Perseverance open pit mine, targeting a potential MRE update.
Corporate
On 19 July 2023 the Company announced the results of an oversubscribed Share Purchase Plan to raise a total
of $1,233,000 million by issuing 4,932,000 shares at a price of $0.25 per share.
On 3 August 2023 the Company published a statement in response to public claims by Marmota Limited
(Marmota) and its subsidiary, Half Moon Pty Ltd (HMP) related to the Western Gawler Craton JV (WGCJV) and
the WGCJV agreement, rejecting the claims and noting that it had proposed a settlement of the matter.
6
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
On 1 September 2023 the Company announced that it had not received a reply to its settlement offer from HMP
and Marmota prior to the deadline set by the Company, and the Company’s withdrawal from its legacy minority
positions in the WGCJV and overlapping Sandstone JV. Upon completion of the withdrawal from the WGCJV
the Company’s total Mineral Resources endowment will reduce by approximately 61,400oz Au.
No other matters or circumstance has arisen since 30 June 2023 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future
financial years.
Significant Changes in the State of Affairs
Other than noted above, in the opinion of the Directors, there were no significant changes in the state of
affairs of the Company that occurred during the financial year under review.
Likely Developments and Expected Results from Operations
The Group will continue to explore and develop its Challenger, Tarcoola and Tunkillia projects.
Environmental Regulation
The Group's operations are subject to significant environmental regulation under both Commonwealth and
relevant State legislation in relation to the discharge of hazardous waste and materials arising from any
exploration or mining activities and development conducted by the Group on any of its tenements. Subject to
ongoing rehabilitation, the Group believes it has complied with all environmental obligations.
Heritage and Community Relations
The Company recognises the importance of establishing relationships with Traditional Owners that are based
on trust and mutual advantage and are respectful of the needs and concerns of the communities located within
the regions in which it operates. The Company has agreements in place with the Traditional Owners and is
committed to building strong relationships by:
Improving cross-cultural awareness through training and education;
Being open and transparent in its communications;
Developing community relations management procedures that include business alliances;
Being sensitive to the values and heritage issues of the local communities; and
Being a good neighbour.
7
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Information on Directors
Kenneth Williams
Qualifications
Experience
Independent Non-Executive Chair
BEc (Hons), MAppFin, FAICD
Mr Williams has over 20 years’ experience as a resource exploration company
Director including 9 years as Director and Chair of AWE Limited (ASX:AWE). From
1999 to 2003 Ken was the Group Treasurer, then CFO, and then Group Finance
Executive for Normandy Mining (subsequently Newmont Australia). He was Chair
of Statewide Super until April 2022, is a non-executive director of Archer Materials
Ltd (ASX:AXE) and Deputy Chancellor of the University of Adelaide.
Relevant interest in Barton Shares
and Options at the date of this
report
750,000 unlisted options, exercisable at $0.375 each, expiry 15 March 2025
18,491 unlisted options, exercisable at $0.00 each, expiry 12 January 2026
Special responsibilities during
reporting period
Directorships held in other ASX
listed entities in the last three years
Alexander Scanlon
Qualifications
Experience
Relevant interest in Barton Shares
and Options at the date of this
report
16,683 unlisted options, exercisable at $0.00 each, expiry 13 April 2026
13,902 unlisted options, exercisable at $0.00 each, expiry 26 July 2026 (issued
post year end)
Member of Nomination and Remuneration Committee
Non-executive Director – Archer Minerals Ltd (ASX.AXE) - September 2020 to
current
Non-executive Director and Chair - Lanyon Investment Company Ltd (ASX.LAN)
– April 2021 to May 2022
Managing Director & Chief Executive Officer
BSc Finance (Hons) and BSc Economics (Hons), MSc Financial Economics,
MPhil Management
Mr Scanlon is a financial economist with over 15 years’ experience in structured
finance and mining advisory, investment and management including as founder or
co-founder of multiple global resources projects. Previously Managing Director of
PARQ Capital, a Director with Lusona Capital, Business Development Manager at
Sirius Minerals PLC and an Executive in the Principal Investments Area at
Barclays Capital.
43,871,459 fully paid ordinary shares
3,000,000 unlisted options, exercisable at $0.375 each, expiry 15 March 2025
1,280,000 unlisted options, exercisable at $0.00 each, expiry 30 June 2026
2,051,284 unlisted options, exercisable at $0.00 each, expiry 30 June 2027
492,307 unlisted options, exercisable at $0.00 each, expiry 1 November 2025
Directorships held in other ASX
listed entities in the last three years
Nil
8
Christian Paech
Qualifications
Experience
Relevant interest in Barton Shares
and Options at the date of this
report
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Independent Non-Executive Director
LLB (Hons), BCom (Accounting), GCLP, GAICD
Mr Paech is a highly regarded corporate advisor with over +25 years of experience
in corporate law, M&A, litigation, risk, governance and major corporate
transactions. He was a member of the Senior Leadership Team at ASX-Listed
Santos Limited where he was General Counsel from 2010 - 2019 and Company
Secretary from 2017 - 2019. Based in Adelaide, Christian was a key advisor to the
Santos Board on a wide range of transactions, joint ventures, Government policy
and engagement, audit, litigation, risk management and ASX disclosure
obligations.
121,017 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 each, expiry 15 March 2025
12,327 unlisted options, exercisable at $0.00 each, expiry 12 January 2026
11,122 unlisted options, exercisable at $0.00 each, expiry 13 April 2026
9,268 unlisted options, exercisable at $0.00 each, expiry 26 July 2026 (issued post
year end)
Special responsibilities during the
reporting period
Chair of the Nomination and Remuneration Committee and member of the Audit
and Risk Committee.
Directorships held in other ASX
listed entities in the last three years
Non-executive Director – AXP Energy Limited (ASX.AXP) – January 2022 to
April 2023
Graham Arvidson
Qualifications
Experience
Relevant interest in Barton Shares
and Options at the date of this
report
Independent Non-Executive Director
BSc (Mech Eng), MBA, MSc (Mineral Economics), MAusIMM CPMet, MIEAust
CPEng, GAICD, PMI (PMP)
Mr Arvidson is an experienced resource industry executive with a background in
operations, mineral economics, project management, and mineral processing
excellence. He has held key leadership roles developing and operating mineral
assets globally across a broad range of commodities and is currently the Chief
Executive Officer of ASX listed Australian Vanadium Limited. His 18 years in the
resource industry spans DD, feasibility, development, and operations
292,177 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 each, expiry 15 March 2025
12,327 unlisted options, exercisable at $0.00 each, expiry 12 January 2026
11,122 unlisted options, exercisable at $0.00 each, expiry 13 April 2026
9,268 unlisted options, exercisable at $0.00 each, expiry 26 July 2026 (issued post
year end
Special responsibilities during the
reporting period
Chair of Audit and Risk Committee
Directorships held in other ASX
listed entities in the last three years
Nil
Neil Rose
Qualifications
Experience
Independent Non-Executive Director (retired 30 June 2023)
BCom Finance and Accounting, CA
Mr Rose is a chartered accountant with a background in the commercial property
and resources sectors being involved in project identification, financing and
development.
Relevant interest in Barton Shares
and Options at the date of
retirement
13,964,234 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 each, expiry 15 March 2025
Special responsibilities during the
reporting period
Member of Nomination and Remuneration Committee and Audit and Risk
Committee.
Directorships held in other ASX
listed entities in the last three years
Nil
9
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Shannon Coates
Qualifications
Experience
Company Secretary
LLB, BA (Jur), GAICD, GIA
Ms Coates is a qualified lawyer and Chartered Secretary with over 25 years’
experience in corporate law and compliance. Ms Coates is currently Managing
Director of Source Governance, a national corporate advisory firm providing
company secretarial and corporate advisory support to boards and various
committees across a variety of industries including resources, oil and gas,
manufacturing and technology.
The number of meetings of the Company's Board of directors (the Board) and of each Board committee held
during the financial year ended 30 June 2023, and the number of meetings attended by each director was:
Full Board of Directors
Audit and Risk
Committee
Nominations and
Remuneration
Committee
Eligible to
Attend
Attended
12
12
12
12
12
12
12
12
12
12
Eligible to
Attend
Note 1
Note 1
3
3
3
Attended
Eligible to
Attend
Attended
3
3
3
3
3
3
Note 2
3
Note 2
3
3
2
3
3
3
Kenneth Williams
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
1 = Messrs Scanlon and Williams attended the Audit and Risk Committee meeting by invitation.
2 = Messrs Scanlon and Arvidson attended the Nomination and Remuneration Committee meeting by invitation.
Remuneration Report (audited)
The remuneration report details the Key Management Personnel (KMP) remuneration arrangements for the
consolidated entity in accordance with the requirements of the Corporations Act 2001 and its Regulations.
KMP are those persons having authority and responsibility for planning, directing and controlling the major
activities of the Company and the Group, directly or indirectly, including all directors.
Remuneration Governance
The Nomination and Remuneration Committee is a sub-committee of the Board. It is primarily responsible for
making recommendations and assisting the Board to:
ensure that it is of an effective composition, size and commitment to adequately discharge its
responsibilities and duties;
independently ensure that the Company adopts and complies with remuneration policies that attract,
retain and motivate high calibre executives and Directors to encourage enhanced performance by the
Company; and
motivate Directors and management to pursue the long-term growth and success of the Company within
an appropriate framework.
Use of Remuneration Consultants
The Nomination and Remuneration Committee may seek advice from independent remuneration specialists to
review its remuneration policy, benchmarking remuneration and incentive structures from time to time. All
engagements will report directly to the Nominations and Remuneration Committee and the consultants are
required to confirm in writing, their independence from the Company’s senior management and other
executives. Consequently, the Board of Directors is able to satisfy themselves that the advice was made free
from undue influence from any member of the KMP.
Non-Executive Directors Remuneration Policy
The Company’s policy is to remunerate Non-Executive Directors a fixed fee reflecting their time commitment
and responsibilities. Fees provided to Non-Executive Directors are inclusive of superannuation and salary
sacrifice, if applicable.
Fees are reviewed annually by the Board's Nomination and Remuneration Committee considering comparable
roles and market data, which may be sought from an independent remuneration adviser.
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Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Non-Executive Directors fees are determined within an aggregate Directors' fee pool limit, which is periodically
recommended for approval by shareholders. The maximum currently stands at $500,000 per rolling 12-month
period and was approved by shareholders on 18 December 2020. The Board may apportion any amount up to
this maximum amount amongst the Non-Executive Directors as it determines. Directors are also entitled to be
paid reasonable travel, accommodation and other expenses incurred in performing their duties as Directors.
From time to time, the Company may grant options or other equity-based incentives to Non-Executive Directors,
subject to obtaining the relevant shareholder approvals. The grant of options or other equity-based incentives
is designed to attract and retain suitably qualified Non-Executive Directors. Options or other equity-based
incentives issued to Non-Executive Directors will not have any performance hurdles in accordance with the ASX
Corporate Governance Principles and Recommendations, recognising that this may lead to bias in their
decision-making and compromise their objectivity.
Executive Remuneration Policy and Framework
Executive remuneration consists of Total Fixed Remuneration (TFR), comprising base salary and
superannuation, short-term incentives (STI’s), which may include performance based equity incentives and/or
a cash bonus, and long-term incentives (LTI’s), which may include options or other performance based equity
incentives such as performance rights, granted at the discretion of the Board on the recommendation of the
Nomination and Remuneration Committee and subject to obtaining relevant shareholder approvals.
Total remuneration packages are designed to achieve the following objectives:
Attracting and retaining key executives at important stages in the Company’s progress and development
and ensuring that all executive remuneration is directly and transparently linked with strategy, risk
management and performance;
Aligning STI’s and LTI’s with the achievement of the Company’s short-term and long-term strategic
objectives and longer-term shareholder return;
Setting performance targets and rewarding performance for successful exploration, appraisal,
development and operations in a way that is sustainable, including in respect of health and safety,
environment and community-based objectives;
Ensuring all equity-based instruments issued to executives are performance based in accordance with
recommended ASX Corporate Governance Principles and Recommendations;
Ensuring effective benchmarking of total remuneration for executives in accordance with market
practices and against a comparable and clearly defined peer group to ensure remuneration is fair and
competitive including TFR as well as STI’s and LTI’s;
Rewarding the achievement of individual and group performance objectives thus promoting a balance
of individual performance and teamwork across the executive management team;
Preserving cash where necessary and appropriate for exploration and project development;
Subject to shareholder approvals, ensuring the pool of Directors fees available to non-executive
Directors is adequate to attract high calibre Directors and to improve board diversity and performance;
and
Promoting independence and impartial decision making by the non-executive Directors.
Total Fixed Remuneration
Executives are offered a competitive level of TFR at market rates (for comparable peer companies), which are
reviewed annually to ensure market competitiveness.
Short-Term Incentives
Senior executives will have an STI component included in their remuneration package representing a
meaningful “at risk” short-term incentive payment. The payment will be “at risk” in that it will only be payable if
a set of clearly defined and measurable performance metrics or Key Performance Indicators (KPIs) have been
met in the applicable performance period. The KPIs may include a combination of Company KPIs and Individual
KPIs. The Board will set KPIs based on metrics that are measurable, transparent, and achievable, designed to
motivate and incentivise the recipient to achieve high performance, and are aligned with the Company’s short
term objectives and shareholder value creation.
The STI, if achieved, will be paid annually in either cash or equity (or a combination thereof) depending on the
eligible employee’s employment contract. STI opportunities will vary from employee to employee depending on
role and responsibility and will be set out in the employee’s employment contract. The STI opportunity for:
the Managing Director will be up to 40% of TFR;
KMPs that report to the Managing Director will be up to 30% of TFR; and
Other Senior Executives will be up to 20% of TFR.
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Barton Gold Holdings Limited
Directors’ Report
30 June 2023
The above STI opportunity thresholds are subject to the annual review of the Board. KPIs will be set annually
as part of the Annual Business Planning Cycle and are targeted to be finalised no later than the 31 August of
each financial year as follows:
KPIs for the Managing Director are set and approved by the Board;
KPIs for other KMP Senior Executives are set by the Managing Director and approved by the Board
KPIs will be reviewed by the Board and Executive Committee to ensure that hurdles are objectively
measurable and aligned with Company strategy.
KPI achievement may be subject to ‘gateway’ tests as itemised for a particular KPI (for example,
irrespective of performance, a safety KPI will not be deemed achieved in the event that the Company
experiences a fatality).
KPI targets and stretch targets will generally be aligned with the Company’s strategic plan and may include HSE
metrics, financial metrics, delivery of projects and growth initiatives, sustainability initiatives and improvements
to Company systems and processes. KPI targets are not the same as budget targets. Philosophically,
employees are paid their TFR for delivering budget performance and are paid “at risk” compensation for
delivering better than budget performance. Stretch performance should be a level beyond this. Targets and
stretch targets will be developed as part of the annual business planning cycle. The Board is responsible for the
determination of whether the KPI targets or stretch targets have been achieved and how much of the STI will
be payable for each performance period. In making such a determination it may obtain external expert advice.
Long-Term Incentives
Subject to Board discretion, the Company’s philosophy is to include an appropriately sized “at risk” performance
based long-term equity incentive (LTI) as a component of total remuneration. The LTI is “at risk” given that
performance targets as set by the Board must be met prior to vesting. These targets must be based on metrics
that are measurable, transparent, and achievable, designed to motivate and incentivise the recipient to achieve
high performance, and are aligned with Company objectives and long-term shareholder value creation.
The value of LTI awarded will vary depending on the particular executive role and responsibilities. The LTI
opportunity for:
the Managing Director will be up to 100% of TFR;
KMPs that report to the Managing Director will be up to 70% of TFR; and
Other Senior Executives will be up to 40% of TFR.
LTI will consist of the offer of equity incentives, such as performance rights or options which will be subject to
certain conditions as set out in the Offer Letter. Any performance LTI will vest in accordance with conditions set
out in the Offer Letter, which are approved by the Board in accordance with applicable plan rules. Performance
rights/options are generally determined after a measurement period or set by the Board of Directors and are
subject to the Company’s long-term performance relative to performance measures. The Board is responsible
for the determination of whether and how much of the LTIs vest in accordance with the applicable plan’s rules.
In making such a determination it may obtain external expert advice.
Participants in the LTI plan, including executive directors and other senior executives, are prohibited (without
approval from the Chair) from entering into transactions (whether through the use of derivatives or otherwise)
which limit the economic risk of participating in the scheme.
Details of remuneration
Amounts of remuneration
Details of the remuneration of KMP of the Company are set out in the following tables.
The KMP of the Company during the financial year consisted of the following directors:
Kenneth Williams - Independent Non-Executive Chair
Alexander Scanlon - Managing Director & Chief Executive Officer
Christian Paech - Independent Non-Executive Director
Graham Arvidson - Independent Non-Executive Director
Neil Rose – Former Non-Executive Director (retired 30 June 2023)
And the following Executive persons:
Marc Twining - Exploration Manager
Nicholas Byrne - Chief Financial Officer
12
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
2023
Salary and Fees
Superannuation
$
$
STI
$
Share based
payments
$
Total
$
Non-Executive Directors
Kenneth Williams
Christian Paech
Graham Arvidson
Neil Rose
Executive Director
Alexander Scanlon
Other KMP
Marc Twining
Nicholas Byrne
Total
2022
Non-Executive Directors
Mark Connelly
(Chairman)
Christian Paech
Graham Arvidson
Neil Rose
Richard Crookes1
Kenneth Williams2
Executive Director
Alexander Scanlon
Other KMP
Marc Twining3
Nicholas Byrne4
Total
81,448
54,299
54,299
54,299
294,707
199,095
154,597
892,744
8,552
5,701
5,701
5,701
25,292
20,905
16,233
88,085
Salary and Fees
Superannuation
$
$
STI
$
81,818
54,545
54,545
54,545
45,455
13,636
296,276
125,757
62,587
789,164
8,182
5,455
5,455
5,455
4,545
1,364
23,724
12,576
6,259
73,015
1 Remuneration from 01 July 2021 to 01 May 2022
2 Remuneration from 01 May 2022 to 30 June 2022
3 Remuneration from 15 November 2021 to 30 June 2022
4 Remuneration from 17 January 2022 to 30 June 2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33,942
9,041
9,041
-
123,942
69,041
69,041
60,000
208,272
528,271
116,148
32,044
336,148
202,874
408,488
1,389,317
Share based
payments
$
Total
$
-
-
-
-
-
-
90,000
60,000
60,000
60,000
50,000
15,000
49,985
369,985
11,424
5,627
149,757
74,473
67,036
929,215
Service agreements
Remuneration and other terms of employment for KMP are formalised in a Senior Executive Employment
Contract. Details of these agreements for FY2023 are as follows:
Name
Title
Alexander Scanlon Managing Director and
Chief Executive Officer
Marc Twining
Exploration Manager
Nicholas Byrne
Chief Financial Officer
Fixed
Remuneration
$320,000 pa
inclusive of
superannuation
$220,000 pa
inclusive of
superannuation
$200,000 pa
inclusive of
superannuation
Variable Remuneration
Notice Period
STI - Up to 40% of Fixed
Remuneration
LTI – Up to 100% of Fixed
Remuneration
STI - Up to 30% of Fixed
Remuneration
LTI – Up to 70% of Fixed
Remuneration
STI - Up to 30% of Fixed
Remuneration
LTI – Up to 70% of Fixed
Remuneration
Requires a period of 3
months-notice by
Company and
Employee
Requires a period of 1
months-notice by
Company and
Employee
Requires a period of 1
months-notice by
Company and
Employee
KMP have no entitlement to termination payments in the event of removal for misconduct.
13
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Share-based payments
As outlined above, Directors may be eligible to participate in equity-based compensation schemes.
Options on issue
Options granted carry no dividend or voting rights. The terms and conditions of each grant of options over
ordinary shares affecting the remuneration of directors and other KMP issued in this financial year or future
reporting years are as follows:
Name
Grant date
Number of
options
granted
Vesting and
exercisable
date
Expiry date
Exercise
price
Fair value
per option at
grant date
Kenneth Williams
96,870 27 Oct 2022
30 June 2025 30 June 2025
Christian Paech
64,581 27 Oct 2022
30 June 2025 30 June 2025
Graham Arvidson
64,581 27 Oct 2022
30 June 2025 30 June 2025
Alexander Scanlon1
492,307 27 Oct 2022
27 Oct 2022
27 Oct 2025
Alexander Scanlon1
1,538,463 27 Oct 2022
30 June 2025 30 June 2027
Alexander Scanlon2
512,821 27 Oct 2022
30 June 2025 30 June 2027
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Kenneth Williams3
750,000 27 Oct 2022
27 Oct 2022
15 Mar 2025
$0.375
Marc Twining1
Marc Twining1
Marc Twining2
Nicholas Byrne1
Nicholas Byrne1
Nicholas Byrne2
296,154 01 Nov 2022
01 Nov 2022
01 Nov 2025
740,385 01 Nov 2022
30 June 2025 01 Nov 2027
246,95 01 Nov 2022
30 June 2025 01 Nov 2027
201,923 01 Nov 2022
01 Nov 2022
01 Nov 2025
504,807 01 Nov 2022
30 June 2025 01 Nov 2027
168,269 01 Nov 2022
30 June 2025 01 Nov 2027
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.14
$0.14
$0.14
$0.14
$0.14
$0.063
$0.027
$0.145
$0.145
$0.066
$0.145
$0.145
$0.066
1,2 These options will vest on satisfaction of specific performance conditions based on both market and non-market conditions.
1 The option tranche is a non-market based performance target and the fair value is measured as the share price at grant date.
2 The option tranche is market-based condition as a measure of Total Shareholder Return (TSR). The performance condition is measured
in relative terms against a defined peer group of companies approved by the Board. The fair value of these options is estimated using Monte
Carlo simulation valuation model at grant date. The Monte Carlo simulates the Company’s share price and depending on the criteria arrives
at a value based on the number of options that are likely to vest. Volatility is based on the share price volatility of the Company and the
peer group of companies.
3 The option tranche is a market based performance target and the fair value is measure using the Black-Scholes option valuation method.
All options were granted over unissued fully paid ordinary shares in the Company. Any option not exercised
before the expiry date will lapse on the expiry date. There are no participating rights or entitlements inherent in
the options and the holders will not be entitled to participate in new issues of capital offered to shareholders
during the currency of the options. All shares allotted upon the exercise of options will rank pari passu in all
respects with the Company’s fully paid ordinary shares. There has not been any alteration to the terms or
conditions of the grant since the grant date. There are no amounts paid or payable by the recipient in relation
to the granting of such options other than on their potential exercise.
Additional information
Company Performance
The following table shows the performance of the Group over the past two years based on several key
indicators:
Basic and diluted loss per share
Net loss before tax
Closing share price
Closing market capitalisation
Financial year ended 30 June
2023
2022
(3.226)
(5,678)
$0.265
$50,444
(2.337)
(4,105)
$0.19
$33,367
cents
$’000
$
$’000
14
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Additional disclosures relating to KMP
Shareholding
The number of shares in the Company held during the financial year by each director and other members of
KMP of the consolidated entity, including their personally related parties, is set out below:
Name
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
Total
Held at
30 June 2022
Received as
part of
compensation
Additions
Disposals/
other
Held at
30 June 2023
43,681,459
101,017
172,177
13,964,234
57,918,887
-
-
-
-
-
190,000
-
-
-
190,000
-
-
-
-
-
43,871,459
101,017
172,177
13,964,234
58,108,887
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and
other members of KMP of the consolidated entity, including their personally related parties, is set out below:
Name
Kenneth Williams
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
Marc Twining
Nicholas Byrne
Total
Opening
balance
-
4,280,000
500,000
500,000
500,000
383,104
188,716
6,351,820
Granted
Exercised
Expired/
forfeited/
other
846,870
2,543,591
64,581
64,581
-
1,283,334
874,999
5,677,956
-
-
-
-
-
-
-
-
Closing
balance
846,870
6,823,591
564,581
564,581
500,000
1,666,438
1,063,715
12,029,776
Vested
846,870
3,492,307
564,581
564,581
500,000
296,154
201,923
6,466,416
-
-
-
-
-
-
-
-
Other transactions with KMP and their related parties
Barton controlled subsidiaries are a party to a private royalty agreement with Australis Royalties Pty Ltd. Mr
Scanlon is a director of Australis Royalties Pty Ltd and entities associated with Messrs Scanlon and Rose hold
relevant interests in the private royalty. Royalties are payable in respect of the production of certain minerals (in
raw or processed form) based upon a fixed percentage of the amount of product produced. Royalties were paid
in the year ended 30 June 2023 $41,081 (2022: nil).
There were no other transactions with KMPs or related parties during the year.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Barton Gold Holdings Limited under option at the date of this report are as
follows:
Grant date
15 March 2021
18 June 2021
18 June 2021
05 November 2021
24 March 2022
27 October 2022
27 October 2022
27 October 2022
01 November 2022
01 November 2022
10 November 2022
06 January 2023
04 April 2023
01 May 2023
Total
Expiry
15 March 2025
18 June 2024
18 June 2024
30 June 2026
30 June 2026
15 March 2025
27 October 2025
30 June 2027
01 November 2025
01 November 2027
30 June 2027
12 January 2026
13 April 2026
30 June 2027
Exercise Price $
$0.375
$0.3125
$0.375
$0.00
$0.00
$0.375
$0.00
$0.00
$0.00
$0.00
$0.20
$0.00
$0.00
$0.00
Amount
6,500,000
1,500,000
1,500,000
1,280,000
710,080
750,000
492,307
2,051,284
625,962
2,829,488
300,000
43,145
38,927
103,804
18,724,997
15
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Indemnity and insurance of officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity
as a director or executive, for which they may be held personally liable, except where there is a lack of good
faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and
executives of the Company against liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
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.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to 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.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year
by the auditor are outlined in note 23 of the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or
by another person or firm on the auditor's behalf), is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 23 to the financial statements do not
compromise the external auditor's independence requirements of the Corporations Act 2001 for the following
reasons:
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
management or decision-making capacity for the Company, acting as an advocate for the Company or
jointly sharing economic risks and rewards.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in
accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest
dollar.
16
Barton Gold Holdings Limited
Directors’ Report
30 June 2023
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001
is set out immediately after this directors' report.
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Alexander Scanlon
Managing Director
21 September 2023
Adelaide, South Australia
17
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
DECLARATION OF INDEPENDENCE
BY PAUL GOSNOLD
TO THE DIRECTORS OF BARTON GOLD HOLDINGS LIMITED
As lead auditor of Barton Gold Holdings Limited for the year ended 30 June 2023, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Barton Gold Holdings Limited and the entities it controlled during the
period.
Paul Gosnold
Director
BDO Audit Pty Ltd
Adelaide, 21 September 2023
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
18
Barton Gold Holdings Limited
Contents
30 June 2023
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Barton Gold Holdings Limited
Additional information
General information
20
21
22
23
24
48
49
53
The financial statements cover Barton Gold Holdings Limited as a consolidated entity consisting of the entities
it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which
is Barton Gold Holdings Limited’s functional and presentation currency.
Barton Gold Holdings Limited is a listed public company limited by shares, incorporated and domiciled in
Australia. Its registered office and principal place of business are:
Registered office
Level 4
12 Gilles Street
Adelaide SA 5000
Principal place of business
Level 4
12 Gilles Street
Adelaide SA 5000
A description of the nature of the consolidated entity's operations and its principal activities are included in the
directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on
21 September 2023. The directors have the power to amend and reissue the financial statements.
19
Barton Gold Holdings Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Consolidated
Note
30 June 2023
$’000
30 June 2022
$’000
Revenue from continuing operations
-
-
4
5
5
6
Other income
Expenses
Exploration expense
Administrative and other expenses
Project and engineering expense
Care and maintenance expense
Finance expense
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Items that may be reclassified to profit or loss:
Other comprehensive income
Total comprehensive loss for the year
attributable to owners of the Company
3,063
2,431
(4,450)
(2,759)
(773)
(185)
(574)
(5,678)
-
(5,678)
(4,366)
(1,783)
-
(193)
(194)
(4,105)
-
(4,105)
-
-
(5,678)
(4,105)
Loss per share attributable to ordinary
equity holders:
Basic and diluted loss per share
34
Cents
(3.226)
Cents
(2.337)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
20
Barton Gold Holdings Limited
Statement of financial position
As at 30 June 2023
Consolidated
Note
30 June 2023
$’000
30 June 2022
$’000
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Other receivables
Exploration and evaluation expenditure
Plant and equipment
Right-of-use assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Employee Benefits
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
7
8
9
10
11
12
13
14
16
15
17
16
17
18
19
20
10,451
68
200
10,719
4,520
9,262
485
107
14,374
25,093
636
53
153
-
842
60
15,488
15,548
16,390
8,703
11,200
427
155
11,782
4,495
9,262
394
-
14,151
25,933
328
-
69
176
573
-
15,091
15,091
15,664
10,269
27,149
1,784
(20,230)
23,540
1,281
(14,552)
8,703
10,269
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
21
Barton Gold Holdings Limited
Statement of changes in equity
For the year ended 30 June 2023
Consolidated
Issued
capital
$’000
Reserves Accumulated
$’000
losses
$’000
Total
equity
$’000
Balance at 1 July 2021
23,510
1,210
(10,447)
14,273
Loss after income tax for the year
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of costs
Share-based payments
-
-
30
-
-
-
-
71
(4,105)
(4,105)
(4,105)
(4,105)
-
-
30
71
Balance as at 30 June 2022
23,540
1,281
(14,552)
10,269
Consolidated
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Total
equity
$’000
Balance at 1 July 2022
23,540
1,281
(14,552)
10,269
Loss after income tax for the year
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of costs
-
-
3,609
-
-
-
Share-based payments
-
503
(5,678)
(5,678)
(5,678)
(5,678)
-
-
3,609
503
Balance as at 30 June 2023
27,149
1,784
(20,230)
8,703
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
22
Barton Gold Holdings Limited
Statement of cash flows
For the year ended 30 June 2023
Note
Consolidated
30 June
2023
$’000
30 June
2022
$’000
Cash flows from operating activities
Receipts from customers
Payments for exploration and evaluation expenditure
Payments to suppliers and employees
Receipts from exploration co-funding
Interest received
Interest and other finance costs paid
2,307
(4,117)
(3,405)
119
254
(18)
1,111
(3,672)
(1,970)
163
1
-
Net cash (outflow) from operating activities
31
(4,860)
(4,367)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for security deposits
Proceeds from sale of property, plant and equipment
Net cash inflow from investing activities
Cash flows from financing activities
Proceeds from issues of shares
Share issue transaction costs
Repayment of lease liabilities
Net cash inflow from financing activities
(176)
(25)
751
550
3,661
(52)
(48)
3,561
(12)
(50)
738
676
-
-
-
-
18
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial
year
(749)
11,200
(3,691)
14,891
Cash and cash equivalents at the end of the financial year
7
10,451
11,200
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
23
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable,
the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value
through other comprehensive income, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the consolidated entity's accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in note 27.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Barton Gold
Holdings Limited (Company or Parent Entity) as at 30 June 2023 and the results of all subsidiaries for the year
then ended. Barton Gold Holdings Limited and its subsidiaries together are referred to in these financial
statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity 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 to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest acquired
is recognised directly in equity attributable to the parent.
Non-controlling interest in the results and equity of 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 consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest
in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss in profit or loss.
24
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on
the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM
is responsible for the allocation of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Barton Gold Holdings Limited's functional
and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the
dates of the transactions. 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.
Revenue recognition
The consolidated entity recognises revenue as follows:
Sale of gold and other metals
Sale of gold and other metals is recognised at the point of sale, which is where the customer has taken delivery
of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts
disclosed as revenue are net of any refinery samples.
Government grants
Government grants relating to costs are recognised in profit or loss when the Company has met the
requirements for claiming the grant.
Accommodation income
The Company has strategic accommodation facilities that are leased on short term basis to external parties.
Income is recognised over the duration of the short term lease period.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on
the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where
applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled, and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits
will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are
recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
25
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax
assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the
same taxable authority on either the same taxable entity or different taxable entities which intend to settle
simultaneously.
Barton Gold Holdings Limited (the 'head entity') and its wholly owned Australian subsidiaries have formed an
income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the
tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated
group has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes
to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from
each subsidiary in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement
ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group
member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the
subsidiaries to the head entity.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed
in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected
to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All
other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of
cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown
within borrowings in current liabilities on the statement of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due
for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped
based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
26
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Property, plant and equipment
Land and buildings are stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
25 years
3 years
3-5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of
the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly
to retained profits.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are
current is carried forward as an asset in the statement of financial position where it is expected that the
expenditure will be recovered through the successful development and exploitation of an area of interest, or by
its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits
a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or
an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the
decision is made.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the
asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent
cash flows are grouped together to form a cash-generating unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end
of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost
and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
27
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental
borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease
payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees,
exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any
anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are
expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index, or a
rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss
if the carrying amount of the right-of-use asset is fully written down.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a
result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account the risks
and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted
using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of
time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to
be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at 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 corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the consolidated entity receives the services
that entitle the employees to receive payment. No account is taken of any other vesting conditions.
28
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value
of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the
vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at
each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated
as follows:
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided
all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not
been made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement
is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, are used, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a reassessment of the lowest level of
input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise
is either not available or when the valuation is deemed to be significant. External valuers are selected based on
market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from
one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the
latest valuation and a comparison, where applicable, with external sources of data.
Issued capital
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.
29
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the
Company.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Barton Gold Holdings
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred
is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities that are recoverable from, or payable to the tax authority, are presented as operating cash
flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
tax authority.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in
accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest
dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory have not been early adopted by the consolidated entity for the annual reporting period ended 30
June 2023. The consolidated entity has not yet assessed the impact of these new or amended Accounting
Standards and Interpretations.
30
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates its
judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined by using
either the Monte Carlo, Binomial or Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-
based payments would have no impact on the carrying amounts of assets and liabilities within the next annual
reporting period but may impact profit or loss and equity. Refer to note 35 for further information.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to the
particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset
is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a
number of key estimates and assumptions.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers
it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or
mined. The consolidated entity's mining and exploration activities are subject to various laws and regulations
governing the protection of the environment. The consolidated entity recognises management's best estimate
for assets retirement obligations and site rehabilitations in the period in which they are incurred. Actual costs
incurred in the future periods could differ materially from the estimates. Additionally, future changes to
environmental laws and regulations and discount rates could affect the carrying amount of this provision.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion
of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes
determining expenditures directly related to these activities and allocating overheads between those that are
expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either
through successful development or sale of the relevant mining interest. Factors that could impact the future
commercial production at the mine include the level of reserves and resources, future technology changes,
which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent
that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in
which this determination is made.
31
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being exploration in Australia. This operating
segment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified
as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation
of resources.
The CODM reviews internal management reports on a regular basis that is consistent with the information
provided in the statement of profit or loss and other comprehensive income, statement of financial position and
statement of cash flows. As a result, no reconciliation is required because the information as presented is what
is used by the CODM to make strategic decisions. The accounting policies adopted for internal reporting to the
CODM are consistent with those adopted in the financial statements.
Note 4. Other Income
Other income
Government grants
Profit on sale of assets
Accommodation hire
Gold concentrate
Interest income
Supplier discount received
Insurance recoveries
Other income
Note 5. Expenses
Consolidated
30 June 2023
$’000
30 June 2022
$’000
1,015
742
551
491
254
10
-
3,063
596
809
-
1,000
1
-
25
2,431
Note
Consolidated
30 June 2023
$’000
30 June 2022
$’000
Loss before income tax from continuing operations includes the following specific expenses:
Administrative expenses
Salary and wages
Advertising and investor relations
Share based payments 35
Consultants
Travel and accommodation
Compliance
Administration costs
Insurance
Occupancy costs
Royalty
770
739
503
242
180
114
60
27
31
(35)
Depreciation
Plant and equipment
Right of use asset buildings
Total administrative and depreciation
Finance expense
Interest accretion on rehabilitation provision
Interest and finance charges paid on lease liabilities
Foreign exchange (net)
Total finance expense
75
53
2,759
556
18
-
574
702
204
71
217
91
103
31
220
17
35
92
-
1,783
193
-
1
194
32
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 6. Income tax expense
The prima facie income tax expense on pre-tax accounting losses from continuing operations reconciles to the
income tax expense in the financial statements as follows:
Consolidated
30 June 2023
$’000
30 June 2022
$’000
Income tax expense
Current tax
Deferred tax
Income tax reported in the statement of profit and loss
Numerical reconciliation of income tax expense and
tax at the statutory rate
Loss before income tax from continuing operations
Tax at the Australian tax rate of 25% (2022: 25%)
Tax effect of amounts that are not deductible (taxable)
in calculating taxable income:
Non-assessable income
Non-deductible expenses
Temporary differences not brought to account
Income tax expense / (benefit)
Unrecoognised tax losses at tax rate of 25%
-
-
-
(5,678)
(1,420)
(213)
181
1,452
-
3,799
-
-
-
(4,105)
(1,026)
(104)
263
867
-
2,348
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2022: 25%) payable by Australian
base rate entities (those with turnover less than $50 million of revenue, and 80% or less of their assessable
income is base rate entity passive income).
Note 7. Current assets – cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
30 June 2023
$’000
30 June 2022
$’000
792
9,659
10,451
2,200
9,000
11,200
Cash and short-term deposits comprise of cash at bank and in hand and short-term deposits with an original
maturity of three months or less.
Reconciliation to cash and cash equivalents at the end of the financial year
The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the
statement of cash flows as follows:
Balances as above
10,451
11,200
Balance as per statement of cash flows
10,451
11,200
33
Note 8. Current assets – receivables
Government grants
GST
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Consolidated
30 June 2023
$’000
30 June 2022
$’000
-
68
68
422
5
427
Government grants related to research and development incentive and South Australia government Landing
Pad to offset costs of establishing a corporate office in Adelaide.
Note 9. Current assets – other
Consumables
Prepayments
Security deposit
Supplier advances
Note 10. Non-current assets – receivables
Environment bonds on deposit
Bank guarantee security
Consolidated
30 June 2023
$’000
30 June 2022
$’000
100
96
-
4
200
-
85
25
45
155
Consolidated
30 June 2023
$’000
30 June 2022
$’000
4,495
25
4,520
4,495
-
4,495
Bonds on deposit is cash placed with the South Australian, Department of Energy and Mining to support future
environmental and rehabilitation performance obligations.
A building lease bond in the form of a bank guarantee has been provided to the lessor of the Company’s
corporate office.
Note 11. Non-current asset - exploration and evaluation expenditure
Exploration and evaluation - at cost
Closing balance
Consolidated
30 June 2023
$’000
30 June 2022
$’000
9,262
9,262
9,262
9,262
34
Note 12. Non-current asset - property, plant and equipment
Land and buildings - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Net carrying value
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Consolidated
30 June 2023
$’000
30 June 2022
$’000
80
(7)
73
679
(267)
412
485
80
(6)
74
544
(224)
320
394
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year
are set out below:
Consolidated
Opening balance as at 1 July 2021
Additions
Classified as held for sale
Disposal
Depreciation expense
Closing balance as at 30 June 2022
Opening balance as at 1 July 2022
Additions
Classified as held for sale
Disposal
Depreciation expense
Closing balance as at 30 June 2023
Note 13. Non-current asset – right-of-use asset
Buildings right-of-use
Less: Accumulated depreciation
Land and
Buildings
$000
Plant &
Equipment
$000
80
-
-
-
(6)
74
74
-
-
-
(1)
73
323
83
-
-
(86)
320
320
175
-
(9)
(74)
412
Total
$000
403
83
-
-
(92)
394
394
175
-
(9)
(75)
485
Consolidated
30 June 2023
$’000
30 June 2022
$’000
160
(53)
107
-
-
-
Additions to the right-of-use assets during the year were $160,000.
The consolidated entity leases a building for its corporate office. The term of the lease is 3 years, and the lease
has an annual escalation clause. At renewal, the terms of the lease are renegotiated.
35
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 14. Current liabilities - trade and other payables
Trade payables
Other payables
Note 15. Current liabilities – employee entitlements
Annual leave
Consolidated
30 June 2023
$’000
30 June 2022
$’000
586
50
636
286
42
328
Consolidated
30 June 2023
$’000
30 June 2022
$’000
153
153
69
69
The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and those where employees are entitled to pro-rata payments in certain
circumstances. The entire amount is presented as current since the consolidated entity does not have an
unconditional right to defer settlement.
Note 16. Lease liabilities
Current lease liability
Non-current lease liability
Consolidated
30 June 2023
$’000
30 June 2022
$’000
53
60
113
-
-
-
Refer note 21 financial instruments for further information on fair value measurement.
Note 17. Provisions
Current rehabilitation provision
Non-current rehabilitation provision
Consolidated
30 June 2023
$’000
30 June 2022
$’000
-
15,488
15,488
176
15,091
15,267
Rehabilitation
The provision represents the present value of estimated costs for future rehabilitation of land explored or mined
by the consolidated entity at the end of the exploration or mining activity.
36
Movement in provision
Movement in the rehabilitation provision during the current financial year is set out below:
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Carrying amount at start of year
Additional provision recognised/(derecognised)
Unwinding of the discount
Carrying amount at the end of the year
Note 18. Equity – issued capital
Consolidated
30 June 2023
$’000
30 June 2022
$’000
15,267
(335)
556
15,488
14,380
694
193
15,267
30 June
2023
Shares
Consolidated
30 June
2022
Shares
30 June
2023
$’000
30 June
2022
$’000
Ordinary shares - fully paid
190,354,326
175,616,719
27,160
23,540
Movements in ordinary share capital
Details
Balance
Transaction costs
Balance
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Share issue transaction costs
Date of
issue
Number of
shares
Issue
Price per
share $
01 Jul 2021
30 Jun 2022
14 Nov 2022
22 Nov 2022
15 Mar 2023
26 Jun 2023
26 Jun 2023
26 Jun 2023
26 Jun 2023
175,616,719
-
175,616,719
140,000
143,080
90,794
222,857
83,876
57,000
14,000,000
-
n/a
0.15
0.15
0.23
0.28
0.24
0.265
0.25
n/a
Balance
30 Jun 2023
190,354,326
$’000
23,510
30
23,540
21
22
21
62
20
15
3,500
(52)
27,149
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par
value and the Company does not have a limited amount of authorised capital.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to
one vote, and upon a poll each share is entitled to one vote.
Capital risk management
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt
is calculated as total borrowings less cash and cash equivalents. There are no externally imposed capital
requirements.
The consolidated entity's objectives when managing capital is by assessing the Group’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses include
the management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since
the prior period. This strategy is to ensure that the Group can fund its future activities.
37
Note 19. Equity – reserves
Share based payment reserve
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Consolidated
30 June 2023
$’000
30 June 2022
$’000
1,784
1,784
1,281
1,281
Share based payment reserve
The reserve is used to recognises fair value of share options and rights that are issued to directors, employee’s
and service providers. Any options that are exercised or expire will be derecognised from the reserve.
Note 20. Equity – accumulated losses
Consolidated
30 June 2023
$’000
30 June 2022
$’000
Accumulated losses at the beginning of financial year
Loss after income tax for the year
Accumulated losses at the end of the financial year
14,552
5,678
20,230
10,447
4,105
14,552
Note 21. Financial risk management
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including foreign currency, price risk,
interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group.
The Board provides principles for overall risk management, as well as policies covering specific areas, such as
interest rate risk, credit risk, and use of financial instruments and investment of excess liquidity where
appropriate. Risk management is carried out by management under policies approved by the Board.
Management identifies and evaluates the risk exposure to the Group and will implement financial hedges to
minimise the risks where appropriate.
The Group's financial instruments consist mainly of deposits with banks, accounts receivable and payable.
Market risk
Foreign currency risk
The Group’s undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations. The foreign currency payments mainly related to
payment for goods and services that are normally settled within 30 days of incurring the obligation. Foreign
exchange rate fluctuations are minimised through the timely settlement of the payable and no forward exchange
contracts are in place.
There are no net liabilities denominated in foreign currencies outstanding as of 30 June 2023.
Price risk
The Group’s does not have any saleable inventories of gold, or other metals, that may be subject to commodity
price risk as at end 30 June 2023. Any gold concentrates that are recovered from historic mining or processing
are sold at spot price and no commodity hedging has been put in place.
38
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Interest rate risk
The Group’s exposure to market risk for changes in interest rates arises from variable interest rate exposure on
cash, fixed deposits and interest-bearing liabilities.
The Group’s policy is to manage its exposure to interest rate risk by holding cash in short-term, fixed rate and
variable rate deposits with reputable high credit quality financial institutions. With interest-bearing liabilities,
consideration is also given to the potential renewal of existing positions, alternative financing, and the mix of
fixed and variable interest rates.
The following table summarises the financial assets and liabilities of the Group, together with the effective
interest rates as at the balance date.
2023
Cash and cash equivalents
Trade and other receivables
Non-current receivables
Trade and other payables
Lease liabilities
2022
Cash and cash equivalents
Trade and other receivables
Non-current receivables
Trade and other payables
Fixed interest
maturing in:
1 – 5
< 1
years
year
$’000
5,500
-
25
-
53
$’000
-
-
-
-
58
Fixed interest
maturing in:
1 – 5
< 1
years
year
$’000
9,000
-
-
-
$’000
-
-
-
-
5
>
years
$’000
-
-
-
-
-
Non-
interest
bearing
$’000
792
68
4,495
636
111
5
>
years
$’000
-
-
-
-
Non-
interest
bearing
$’000
-
189
4,495
649
interest
Average
rates
Floating Fixed
%
0.25%
-
-
-
-
%
3.96%
-
3.20%
-
4.9%
interest
Average
rates
Floating Fixed
%
0.01%
-
-
-
%
3.28%
-
-
-
Floating
interest
rate
$’000
4,158
-
-
-
-
Floating
interest
rate
$’000
2,200
-
-
-
As at 30 June 2023, a movement of 1% in interest rates, with all other variables being held constant, results in
an immaterial movement in pre-tax losses.
Credit risk
Credit risk arises from the financial assets of the Group, and its exposure to credit risk arises from the potential
default of the counterparty, with a maximum exposure equal to the carrying amount of the instruments. The
Group’s exposure to credit risk is minimal and results only from its exposure in cash and cash equivalents. The
Group holds its cash with Commonwealth Bank which has a long-term credit rating of AA- rating from S&P
Global Ratings.
Liquidity risk
The Group’s objective is to ensure sufficient liquid funds are available to meet the Group’s financial
commitments in a timely and cost-effective manner.
The Group’s treasury function continually reviews the Group’s liquidity position including cash flow forecasts to
determine the forecast liquidity position and maintain appropriate liquidity levels.
2023
Cash and cash equivalents
Trade and other receivables
Non-current receivable
Trade and other payables
Lease liabilities
Net inflow
< 1 year
$’000
10,451
68
-
(636)
(53)
9,830
1 – 5 years
$’000
-
-
25
-
(58)
(33)
> 5years
$’000
-
-
4,495
-
-
4,495
Total
$’000
10,451
68
4,520
(636)
(111)
14,292
39
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
< 1 year
$’000
11,200
189
-
(649)
10,740
1 – 5 years
$’000
-
-
-
-
-
> 5years
$’000
-
-
4,445
-
4,445
Total
$’000
11,200
189
4,445
(649)
15,185
2022
Cash and cash equivalents
Trade and other receivables
Non-current receivable
Trade and other payables
Net inflow
Note 22. KMP disclosures
Compensation
The aggregate compensation made to directors and other members of KMP of the consolidated entity is set out
below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share based payments
Consolidated
30 June 2023
$
892,744
88,085
-
408,488
30 June 2022
$
789,164
73,015
-
67,036
1,389,317
929,215
Other transactions with KMP and their related parties
Barton controlled subsidiaries are a party to a private royalty agreement with Australis Royalties Pty Ltd. Mr
Scanlon is a director of Australis Royalties Pty Ltd and entities associated with Messrs Scanlon and Rose hold
relevant interests in the private royalty. Royalties are payable in respect of the production of certain minerals (in
raw or processed form) based upon a fixed percentage of the amount of product produced. Royalties were paid
in the year ended 30 June 2023 $41,081 (2022: nil).There were no loans or other transactions with KMP during
the year ended 30 June 2023.
Note 23. Remuneration of auditors
During the financial year, the following fees were paid or payable for services provided by BDO, the auditor of
the Company, its network firms, and unrelated firms.
Consolidated
30 June 2023
$
30 June 2022
$
Auditing services - BDO
54,500
50,263
Other services - BDO
Corporate finance valuation services
Tax advisory services
4,100
-
4,100
58,600
-
1,500
1,500
51,763
Note 24. Contingent assets and liabilities
The consolidated entity has given a $25,000 bank guarantee to lessor of the corporate office as of 30 June 2023
(2022: nil).
The consolidated entity has given a $4,495,000 rehabilitation performance cash bond to Department of Energy
and Mining as of 30 June 2023 (2022: $4,495,000).
40
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Consolidated
30 June 2023
$’000
30 June 2022
$’000
93
93
161
161
Note 25. Commitments
Capital commitments
Committed at the reporting date but not recognised as liabilities,
payable:
Property, plant, and equipment
Note 26. Related party transactions
Parent entity
Barton Gold Holdings Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Joint ventures
Interests in joint ventures are set out in note 29.
KMP
Disclosures relating to KMP are set out in note 22 and the remuneration report included in the Directors’ report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for goods and services:
Payments for services from joint venture
Payments for accounting services from Straightline Group Pty Ltd
(a director-related entity of Neil Rose)
Other payments:
ML6103 gold production royalty and interest (director related
entity of Alexander Scanlon)
Receivable from and payable to related parties
The following balances are outstanding at the reporting date
Consolidated
30 June 2023
$
46,893
-
30 June 2022
$
-
15,318
41,081
-
Current payables:
Payables to joint venture
5,816
24,442
Loans to/from related parties:
There were no loans to or from related parties at the current and
previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
41
Note 27. Parent entity information
Set out below is the supplementary information about the parent entity.
Summarised statement of profit or loss and other comprehensive income
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Profit / (Loss) after income tax
Total comprehensive profit / (loss)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Parent
30 June 2023
$’000
30 June 2022
$’000
(401)
(401)
263
263
Parent
30 June 2023
$’000
30 June 2022
$’000
25,948
26,080
607
667
26,364
1,784
(2,735)
25,413
22,026
22,026
324
324
22,755
1,281
(2,334)
21,702
Guarantees
The parent entity had not entered into any cross guarantees with its subsidiaries as at 30 June 2023 (2022: nil).
Contingent liabilities
The parent entity has contingent liability for a $25,000 bank guarantee to lessor of the corporate office as of 30
June 2023 (2022: nil).
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 (2022: nil).
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity.
Note 28. Interest in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly owned
subsidiaries in accordance with the accounting policy described in note 1:
Name of entity
Barton Gold Holdings Australia Pty Ltd
Barton Gold Pty Ltd
Roma Resources SA Pty Ltd
Tunkillia 2 Pty Ltd
Tarcoola 2 Pty Ltd
Challenger 2 Pty Ltd
Jumbuck Equipment Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity %
2023
100
100
100
100
100
100
100
Equity %
2022
100
100
100
100
100
100
100
42
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 29. Interests in Associates
Interests in associates are accounted for using the equity method of accounting. Information relating to joint
associates that are material to the consolidated entity are set out below:
Name
Country of
incorporation
Western Gawler Craton Joint Venture
Australia
Ownership Interest
2023
%
21.16
2022
%
21.16
Note 30. Matters Subsequent to the End of the Reporting Period
Exploration
On 14 August 2023 the Company announced the completion of a major regional seismic program at Tarcoola,
led by industry leader HiSeis, with the goal to develop a higher resolution model of the near surface (0-500m
depth) structure across a ~15km long zone prospective for repeats of the Perseverance Mine’s mineralisation.
The analysis of this survey is expected to be completed prior to the end of the 2023 calendar year.
On 30 August 2023 the Company announced the mobilisation of another major drilling program at Tunkillia, with
an initial ~7,500m program designed to target additional MRE growth in the strike extensions of the 223 Deposit.
On 8 September 2023 the Company announced the start of diamond drilling on the Perseverance West gold
zone at Tarcoola’s Perseverance open pit mine, targeting a potential MRE update.
Corporate
On 19 July 2023 the Company announced the results of an oversubscribed Share Purchase Plan to raise a total
of $1,233,000 million by issuing 4,932,000 shares at a price of $0.25 per share.
On 3 August 2023 the Company published a statement in response to public claims by Marmota Limited
(Marmota) and its subsidiary, Half Moon Pty Ltd (HMP) related to the Western Gawler Craton JV (WGCJV) and
the WGCJV agreement, rejecting the claims and noting that it had proposed a settlement of the matter.
On 1 September 2023 the Company announced that it had not received a reply to its settlement offer from HMP
and Marmota prior to the deadline set by the Company, and the Company’s withdrawal from its legacy minority
positions in the WGCJV and overlapping Sandstone JV. Upon completion of the withdrawal from the WGCJV
the Company’s total Mineral Resources endowment will reduce by approximately 61,400oz Au.
No other matters or circumstance has arisen since 30 June 2023 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future
financial years.
43
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 31. Reconciliation of loss after income tax to net cash flows from operations activities
Loss after income tax for the year
Adjustments for:
Depreciation
Net gain on sale of assets
Share-based payments
Rehabilitation adjustment
Interest accretion
Tax expense
Changes in operating assets and liabilities
Decrease/(Increase) in trade and other receivables
(Increase) in other current assets
Increase /(decrease) in trade and other payables
Increase in employee entitlements
Consolidated
30 June 2023
$’000
(5,678)
30 June 2022
$’000
(4,105)
128
(742)
503
(335)
556
-
360
(45)
309
84
92
(809)
71
694
193
-
(345)
(56)
(144)
42
Net cash flows from operating activities
(4,860)
(4,367)
Note 32. Non-cash investing and financing activities
Additions to right-of-use building
Shares issued for marketing services
Consolidated
30 June 2023
$’000
30 June 2022
$’000
161
161
322
-
-
-
Note 33. Changes in liabilities arising from financing activities
Consolidated
Bank
Loans
$’000
Convertible
Notes
$’000
Lease
liability
$’000
Balance 01 July 2021
Net cash used in financing activities
Acquisition of leases
Other changes
Balance at 30 June 2022
Net cash used in financing activities
Acquisition of leases
Other changes
Balance at 30 June 2023
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(48)
161
-
113
Total
$’000
-
-
-
-
-
(48)
161
-
113
44
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Note 34. Loss per share
Loss per share for profit from continuing operations
Loss used in calculating basic and diluted loss per
share from continuing operations
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in
the calculation of basic and diluted loss per share
Basic loss and diluted loss per share
Consolidated
30 June 2023
$’000
30 June 2022
$’000
(5,678)
(4,105)
Shares
Shares
176,014,815
175,616,708
Cents
3.226
Cents
2.337
Basic loss per share is determined by dividing net loss after income tax attributable to members of the Company,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial period.
Diluted loss per share adjusts the value used in the determination of basic loss per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares
by the weighted average number of shares assumed to have been issued for no consideration in relation to
potential ordinary shares.
Note 35. Share-based payments
The Company provides benefits to employees (including directors) in the form of share based payment
transactions, whereby services are rendered in exchange for shares or rights over shares. All director issued
options are approved by shareholders at a general meeting. The board may approve external service providers
rights over shares in exchange for services provided.
Eligible employees may receive share based payments as a benefit under the Employee Incentive Scheme.
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is no issue
price for options and the option exercise price is determined by the Board. An option may only be exercised
after that option has vested and any other conditions imposed by the Board on exercise are satisfied. The Board
may determine the vesting period, if any.
No voting or dividend rights are attached to the options and any unissued ordinary shares. Voting rights are
attached to unissued ordinary shares after options have been exercised.
At the AGM held on 27 October 2022 shareholders approved issuing Mr Williams, 750,000 options at exercise
price $0.375, Mr Scanlon 2,543,591 zero priced options and 226,032 further zero price director options.
On 01 November 2022 under the Employee Incentive Scheme key management and an employee were issued
STI award of 625,962 zero priced options and LTI award of 2,829,488 zero priced options.
On 10 November 2022 a consultant was issued 300,000 options at exercise price $0.20.
On 01 May 2023 under the Employee Incentive Scheme employees were issued LTI award of 103,804 zero
priced options.
45
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
Set out below are summaries of options granted under the plan:
Financial year 2023
Grant date
Expiry date
Exercise
price
Balance at
start of year
Granted
Exercised
Expired/
forfeited/
other
Balance at end
of the year
15/03/2021
18/06/2021
18/06/2021
05/11/2021
24/03/2022
27/10/2022
27/10/2022
27/10/2022
27/10/2022
01/11/2022
01/11/2022
10/11/2022
01/05/2023
15/03/2025
18/06/2024
18/06/2024
05/11/2026
30/06/2026
15/03/2025
30/06/2025
27/10/2025
30/06/2025
01/11/2025
01/11/2027
10/11/2025
30/06/2027
$0.375
$0.3125
$0.375
$0.00
$0.00
$0.375
$0.00
$0.00
$0.00
$0.00
$0.00
$0.20
$0.00
6,500,000
1,500,000
1,500,000
1,280,000
710,080
-
-
-
-
-
-
-
11,490,080
-
-
-
-
-
750,000
226,032
492,307
2,051,284
625,962
2,829,488
300,000
103,804
7,378,877
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,500,000
1,500,000
1,500,000
1,280,000
710,080
750,000
226,032
492,307
2,051,284
625,962
2,829,488
300,000
103,804
18,868,957
Weighted average exercise price
$0.3019
$0.0462
$0.00
$0.00
$0.2019
Financial year 2022
Grant date
Expiry date
Exercise
price
Balance at
start of year
Granted
Exercised
15/03/2021
18/06/2021
18/06/2021
05/11/2021
24/03/2022
15/03/2025
18/06/2024
18/06/2024
05/11/2026
30/06/2026
$0.375
$0.3125
$0.375
$0.00
$0.00
6,500,000
1,500,000
1,500,000
9,500,000
-
-
-
1,280,000
710,080
1,990,080
-
-
-
-
-
-
Expired/
forfeited/
other
Balance at end
of the year
-
-
-
-
-
-
6,500,000
1,500,000
1,500,000
1,280,000
710,080
11,490,080
Weighted average exercise price
$0.3651
$0.00
$0.00
$0.00
$0.3019
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
27/10/2022
01/11/2022
27/10/2025
1/11/2025
2023
Number
492,307
625,962
1,118,269
2022
Number
-
-
-
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.44
years (2022: 1.74 years).
46
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2023
For the options granted during the current financial year, the valuation model inputs used to determine the fair
value at the grant date, are as follows:
Grant date
Expiry date
27/10/20221
27/10/20221
27/10/20222
27/10/2022
27/10/20223
01/11/20221
01/11/20221
01/11/20222
10/11/20221
01/05/20231
01/05/20232
27/10/2025
30/06/2027
30/06/2027
30/6/2025
15/03/2025
01/11/2025
01/11/2027
01/11/2027
01/11/2025
30/06/2027
30/06/2027
Vesting
date
27/10/2022
30/06/2025
30/06/2025
30/06/2025
27/10/2022
01/11/2022
30/06/2025
30/06/2025
01/11/2025
30/06/2025
30/06/2025
Share price
at grant
date
$0.14
$0.14
$0.14
$0.14
$0.14
$0.145
$0.145
$0.14
$0.165
$0.245
$0.245
Exercise
price
Expected
volatility
Dividend
yield
$0.00
$0.00
$0.00
$0.00
$0.375
$0.00
$0.00
$0.00
$0.20
$0.00
$0.00
73%
73%
73%
73%
73%
72%
72%
72%
74%
75%
75%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Risk-free
interest
rate
3.37%
3.37%
3.37%
3.37%
3.37%
3.25%
3.41%
3.41%
3.25%
3.05%
3.05%
Fair value
at grant
date
$0.14
$0.14
$0.063
$0.14
$0.027
$0.145
$0.145
$0.066
$0.0747
$0.245
$0.221
1,2 These options will vest on satisfaction of specific performance conditions based on both market and non-
market conditions.
1 The option tranche is non-market based performance target and the fair value is measured as the share price
at grant date.
2 The option tranche is market-based condition as a measure of Total Shareholder Return (TSR). The
performance condition is measured in relative terms against a defined peer group of companies approved by
the Board. The fair value of the options is estimated using Monte Carlo simulation valuation model at grant date.
The Monte Carlo simulates the Company’s share price and depending on the criteria arrives at a value based
on the number of options that are likely to vest. Volatility is based on the share price volatility of the Company
and the peer group of companies.
3 The option tranche is a market based performance target and the fair value is measure using the Black-Scholes
option valuation method.
47
Barton Gold Holdings Limited
Directors’ Declaration
For the year ended 30 June 2023
In the Directors' opinion:
(a)
the Consolidated Financial Statements and notes are in accordance with the Corporations Act
2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
giving a true and fair view of the Consolidated Entity's financial position for year ended
30 June 2023 and of its performance for the year ended on that date, and
(b)
(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, and
the financial statements and notes thereto are in accordance with the International Financial
Reporting Standards issued by the International Accounting Standards Board.
The Directors have been given the declarations as required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of Directors.
Alexander Scanlon
Managing Director
Adelaide, South Australia
21 September 2023
48
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARTON GOLD HOLDINGS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Barton Gold Holdings Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2023, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial report, including a summary of significant accounting policies
and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the 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 also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
49
ACCOUNTING FOR SHARE BASED PAYMENTS
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2023, the Group
Our procedures included, but were not limited to:
granted options to key management personnel and other
employees.
Refer to Note 35 of the financial report for a description
of the accounting policy, the significant estimates and
judgements applied to these arrangements and for
disclosure of the arrangements.
Share-based payments are a complex accounting area
and due to the complex and judgemental estimates used
in determining the fair value of the share-based
payments in accordance with AASB 2 Share Based
Payments, we consider the Group’s calculation of the
share-based payments expense to be a key audit matter.
(cid:127)
(cid:127)
(cid:127)
Reviewing market announcements and board
meeting minutes to ensure all share based
payments have been recognised;
Reviewing the relevant supporting
documentation to obtain an understanding of the
contractual nature, terms and conditions of the
share-based payments arrangements;
Evaluating management’s method for calculating
the fair value of the share-based payments,
including assessing valuation inputs, scrutinising
judgements related to the likelihood of non-
market performance vesting conditions being
satisfied, and using internal specialists where
appropriate;
(cid:127)
Assessing the adequacy of the related disclosures
in the financial report.
CARRYING VALUE OF CAPITALISED EXPLORATION & EVALUATION EXPENDITURE
Key audit matter
How the matter was addressed in our audit
The carrying value of capitalised exploration and
Our procedures included, but were not limited to:
evaluation assets as at 30 June 2023 is disclosed in Note
11 of the financial report.
The Group has adopted the accounting policy to
capitalise acquisition costs relating to the acquisition of
original exploration and evaluation expenditure and
expense any ongoing exploration activities.
As the carrying value of exploration and evaluation
assets represents a significant asset of the Group, we
considered it necessary to assess whether any facts or
circumstances exist to suggest that the carrying amount
of this asset should be subject to impairment testing.
Judgement is applied in determining the treatment of
exploration expenditure in accordance with Australian
Accounting Standard AASB 6 Exploration for and
Evaluation of Mineral Resources. As a result, this is
considered a key audit matter
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
remained current at reporting date;
Considering the status of the ongoing exploration
programmes in the respective areas of interest
by holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
announcements and board meeting minutes;
Considering whether any such areas of interest
had reached a stage where a reasonable
assessment of economically recoverable reserves
existed;
Considering whether there are any other facts or
circumstances existing to suggest impairment
testing was required; and
Assessing the adequacy of the related disclosures
in the financial report.
50
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 10 to 15 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Barton Gold Holding Limited, for the year ended 30 June
2023, complies with section 300A of the Corporations Act 2001.
51
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Paul Gosnold
Director
Adelaide, 21 September 2023
52
Barton Gold Holdings Limited
Additional Information
As at 30 June 2023
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this
report is as follows. The information is current as at 31 August 2023.
Issued Equity Capital
Number of holders
Number on issue
Voting Rights
Ordinary Shares
1,090
195,286,326
Options
19
18,757,435
Voting rights, on a show of hands, are one vote for every registered holder of Ordinary Shares and on a poll,
are one vote for each share held by registered holders of Ordinary Shares. Options do not carry any voting
rights.
Distribution of Holdings of Equity Securities
Fully Paid Ordinary Shares
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Ordinary Shares
29
256
169
468
168
1,090
Units
6,786
825,120
1,387,561
17,911,310
175,155,549
195,286,326
Unlisted options exercisable at $0.3125 and expiring 18 June 2024
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
3(1)
3
Units
0
0
0
0
1,500,000
1,500,000
(1) Taycol Nominees Pty Ltd <211 A/C> holds 712,333 options, comprising 47.49% of this class; Sprott Capital Partners LP holds 431,500
options, comprising 28.77% of this class; and Cannacord Genuity (Australia) Limited holds 356,167 comprising 23.74% of this class.
Unlisted options exercisable at $0.375 and expiring 18 June 2024
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
3(1)
3
Units
0
0
0
0
1,500,000
1,500,000
(1) Taycol Nominees Pty Ltd <211 A/C> holds 712,333 options, comprising 47.49% of this class; Sprott Capital Partners LP holds 431,500
options, comprising 28.77% of this class; and Cannacord Genuity (Australia) Limited holds 356,167 comprising 23.74% of this class.
Unlisted options exercisable at $0.375 and expiring 15 March 2025
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
8
8
Units
0
0
0
0
6,500,000
6,500,000
53
Barton Gold Holdings Limited
Additional Information
As at 30 June 2023
Unlisted director options exercisable at $0.375 and expiring 15 March 2025
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
1
1
Units
0
0
0
0
750,000
750,000
Unlisted director and employee options exercisable at $0.00 and expiring 1 November 2025
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
4
4
Units
0
0
0
0
1,118,269
1,118,269
Unlisted options exercisable at $0.20 and expiring 22 November 2025
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
1(1)
1
Units
0
0
0
0
300,000
300,000
(1) Red Cloud Financial Services Inc holds 300,000 options, comprising 100% of this class.
Unlisted director options exercisable at $0.00 and expiring 12 January 2026
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
3
0
3
Units
0
0
0
43,145
0
43,145
Unlisted director options exercisable at $0.00 and expiring 13 April 2026
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
3
0
3
Units
0
0
0
38,927
0
38,927
Unlisted director and employee options exercisable at $0.00 and expiring 30 June 2026
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
0
0
4
4
Units
0
0
0
0
1,990,080
1,990,080
54
Barton Gold Holdings Limited
Additional Information
As at 30 June 2023
Unlisted director options exercisable at $0.00 and expiring 26 July 2026
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Options
0
0
2
1
0
3
Units
0
0
18,536
13,902
0
32,438
Unlisted director and employee options exercisable at $0.00 and expiring 30 June 2027
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unmarketable Parcels
Number of Equity Security Holders
Options
0
0
0
2
5
7
Units
0
0
0
103,804
4,880,772
4,984,576
The number of shareholders holding less than a marketable parcel (being 145,891 Shares as at 31 August
2023) based on a closing market price of $0.22 was 99.
Substantial Shareholders
Gocta Holdings Pty Ltd1
Six Fingers Pty Ltd
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