A N N U A L R E P O R T
Calidus Resources Limited | ABN: 98 006 640 553 | ASX: CAI | and Controlled Entities
Annual Report for the Financial Year ending 30 June 2023
FY23 Calidus completed commissioning and
ramp up of the 2.4mtpa processing plant to
nameplate capacity which culminated in the
achievement of steady state operations and
the declaration of commercial production
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 1
ContentsCorporate Directory 2Chairman’s Letter 5FY23 Highlights 6Review of Operations 7Sustainability Report 14Annual Mineral Resource & Ore Reserve Report 19Tenement Schedule 22Directors’ Report 24Remuneration Report 31Auditor’s Independence Declaration 39Consolidated Financial Statements 40Consolidated Statement of Profit or Loss 40Consolidated Statement of Financial Position 41Consolidated Statement of Changes in Equity 42Consolidated Statement of Cash Flows 43Notes to the Consolidated Financial Statements 44Directors’ Declaration 69Independent Auditor’s Report 71Additional ASX Information 75Annual Report for the Financial Year ending 30 June 2023 Corporate Directory
Corporate Directory
Directors
Management
ā David Reeves
Managing Director
ā Mark Connelly
ā Richard Hill
Chief Financial Officer
ā Paul Brennan
Non-Executive Chairman
Chief Operating Officer
ā John Ciganek
Non-Executive Director
ā Kate George
Non-Executive Director
ā Julia Beckett
Company Secretary
2
ā Don Russell
General Manager
Warrawoona Operations
Registered Office
& Principal Place of Business
Suite 12, 11 Ventnor Avenue
West Perth WA 6005
Telephone: +61 8 9178 8950
Email: info@calidus.com.au
Website: www.calidus.com.au
Auditor
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth WA 6000
Share Registry
Automic
GPO Box 5193 Sydney NSW 2001
Telephone:
1300 288 664 (Within Australia)
+61 2 9698 5414 (Overseas)
Website: moore-australia.com.au
Email: hello@automicgroup.com.au
Securities Exchange
The Company’s shares are listed on
the Australian Securities Exchange
(ASX) Code:
CAI – Ordinary Shares
CAIO – Listed Options
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Corporate Directory
The Company has met
its H2 FY23 guidance by
producing 31,364 ounces at
an AISC of $2,172 per ounce
3
Annual Report for the Financial Year ending 30 June 2023 Corporate Directory
4
During the year the Company demonstrated the
significant untested geological potential at Blue
Spec through the discovery of the Felix prospect
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Chairman’s Letter
Chairman’s Letter
Dear Shareholder,
On behalf of the Board of Directors, I am pleased to present the Calidus Resources Ltd
(“Calidus” or “the Company”) Annual Report for the financial year ended 30 June 2023.
I am pleased to announce the Company has met its H2 FY23 guidance by producing
31,364 ounces at an AISC of $2,172 per ounce following the Company’s declaration of
commercial production at the Warrawoona Gold Project (“WGP”). In FY2023 Calidus has
managed a challenging production environment that included commissioning issues, cost
inflationary pressures, shortages of labour and equipment and severe weather events.
The Company has made enormous efforts to mitigate the impact of the challenges
highlighted above and as a result is confident to continue delivering its forecast
production and cost guidance in FY2024.
In late FY2023 Calidus entered into a Binding Agreement with Haoma Mining Ltd
(“Haoma”) under which the Company may form a Joint Venture (“JV”) covering any of
Haoma’s tenements in the East Pilbara. These JV tenements host numerous high-grade
gold deposits that are all within trucking distance of Calidus’ WGP and are located
on granted Mining Leases. The Company is extremely excited to demonstrate to
shareholders the potential near-term economic benefits in FY2024.
Calidus remains committed to advancing the Blue Spec gold deposit that sits within
trucking distance of the WGP and has the potential to increase production to in excess of
100,000oz per year. During the year the Company demonstrated the significant untested
geological potential at Blue Spec through the discovery of the Felix prospect located
within 5km of Blue Spec and 65km of the WGP. The Company has emphasised over the
years that our core strengths are turning exploration projects into viable and profitable
gold producing assets to deliver value for our shareholders.
Calidus continues to progress the demerger plans for Pirra Lithium in the Pilbara and are
very excited for this process to be finalized in FY2024. Early exploration work returned highly
promising results that warrant the assets being advanced in a stand-alone company that will
have the ability to provide the exploration focus they deserve. The exceptional prospectivity
of Pirra Lithium’s portfolio combined with the market’s continued strong appetite for lithium,
highlight the potential to create significant value for Calidus shareholders.
I look forward to reporting to you as we implement the next key plans of our growth
strategy on both our gold and lithium assets.
I would like to extend a sincere thank you to our employees across the business. It has been
a year of great effort and transformation; we appreciate your hard work and dedication.
Lastly, on behalf of the Board, I would like to say a warm thank you to our shareholders
for your continued support, trust and backing.
5
Yours faithfully
Mark Connelly
Non-Executive Chairman
Annual Report for the Financial Year ending 30 June 2023Annual Report for the Financial Year ending 30 June 2023 FY23 Highlights
FY23 Highlights
Operations
` Commercial production declared at
Warrawoona
` 56k ounces produced for the year
` 31k ounces produced at $2,172/oz
in H2 post declaration of commercial
production
` Only 1 lost time injury, resulting in a
lost time injury frequency rate of 1.51
6
Expansion and Exploration
` Discovery of the Felix deposit near
Blue Spec
` Completion of the positive Blue
Spec feasibility study that shows
incremental growth in production of
30,000 ozs pa
` Execution of a Joint Venture
Agreement to access and assess
nearby gold deposits
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Review of Operations
Review of Operations
Calidus Resources (ASX:CAI) ('Calidus' or 'the Company')
declared commercial production at the (100% owned)
Warrawoona Gold Project ('Warrawoona' or 'the
Project') in January 2023. Warrawoona is situated in the
East Pilbara district of the Pilbara Goldfield of Western
Australian consisting of a 2.4Mtpa processing facility and
associated infrastructure. Warrawoona has total Mineral
Resources of 1.4Mozs and 662km2 of prospective
tenements.
Ore is being sourced currently from the Klondyke
open pit with gold production estimated to be
circa 70,000 ounces per annum. This is forecast to
increase to over 100,000 ounces per annum via the
introduction of higher grade underground ore and ore
from the ultra-high grade Blue Spec deposit.
Calidus is also a 50% owner of Pirra Lithium Pty Ltd
('Pirra') a Pilbara focused lithium explorer.
DE GREY MINING
MALLINA PROJECT
11.7 Moz
KAIROS
MT YORK DEPOSIT
1.6 Moz
BAMBOO CREEK
PROJECT
WARRAWOONA
PROJECT
1.4 Moz
BLUE SPEC
PROJECT
NOVO RESOURCES
NULLAGINE PROJECT
276 Koz
WESTERN AUSTRALIA
Calidus Gold Project
Other Gold Project
Town
Road
7
BLACK CAT SYNDICATE
PAULSEN’S MINE
465 Koz
KALAMAZOO
ASHBURTON PROJECT
1.44 Moz
CAPRICORN METALS
KARLAWINDA MINE
2.2 Moz
Figure 1: Location of the Warrawoona Gold Project
Warrawoona Gold Project
During the year Calidus completed commissioning and
ramp up of the 2.4mtpa processing plant to name plate
capacity which culminated in the achievement of steady
state operations and the declaration of commercial
production at the beginning of January 2023.
The processing plant operated above nameplate
300tph capacity at average gold recovery over 95% for
extended periods of time. Mill throughput increased
15% during the June quarter with record throughput
of 230,262 tonnes in the month of June 2023. Minor
works are being undertaken to ensure this increased
capacity can be sustained for life of mine.
Mining activity is centred at the Klondyke open pit with
a large amount of waste stripping undertaken to-date.
The strip ratio is forecast to drop over the remainder of
the life of the pit which will see cash costs reduce.
Warrawoona achieved record quarterly production
for the June 2033 quarter producing 16,177 ounces of
gold at an all-in sustaining cost (AISC) of $2,245/oz.
This resulted in the company achieving its production
and cost guidance for the H2 FY23 with 31,364 ounces
produced at an AISC of $2,172/oz.
There was one Lost Time Injury and two Restricted
Work Injuries recorded in the year.
Gold Sales since the declaration of commercial
production for H2 FY23 has totalled 31,468 ounces
(31% increase over H1 FY23) at an average sales price
of $2,549 per ounce generating $80.2M of gold
sales revenue.
These key milestones were achieved despite
challenges stemming from an industry wide labour
shortage, impacts of COVID outbreaks, mining
contractor equipment availability issues and water
shortages. The majority of these issues have been
resolved, although access to appropriately qualified
labour remains challenging.
Annual Report for the Financial Year ending 30 June 2023Annual Report for the Financial Year ending 30 June 2023 Review of Operations
8
Figure 2: Tenement Holdings of Calidus
Figure 3: Warrawoona Gold Project
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Review of Operations
Warrawoona Operational Performance
Warrawoona Operations
Sept Quarter
2022
Dec Quarter
2022
Mar Quarter
2023
June Quarter
2023
FY
2023
Ore Mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head Grade
Recovery
BCM
BCM
270,411
269,590
274,926
252,266
1,243,761
1,060,469
1,130,649
1,043,641
Waste:Ore
4.6
Tonnes
Tonnes
g/t
%
713,377
525,705
0.78
98.0%
3.9
696,739
510,719
0.79
97.3%
4.1
737,856
587,093
0.84
95.3%
4.1
655,924
675,170
0.79
94.9%
1,067,193
4,478,521
4.2
2,803,897
2,298,687
0.80
96.2%
Ounces Recovered
Ounces
12,836
12,544
15,187
16,177
56,745
Revenue
Gold Sold
Ounces
Achieved Sales Price
A$/oz
Revenue
Costs
Open Pit Mining
Processing
Site Services
By Product Credits
Ore Inventory
Adjustment
Royalties
Cash Operating Cost
Sustaining Capital
Corporate Overheads
A$M
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
All-In Sustaining Cost 1
A$/oz
12,287
2,543
31.2
11,769
2,377
28.0
15,982
2,509
40.1
15,487
2,590
40.1
55,524
2,511
139.4
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,445
1,354
1,398
613
186
(6)
(257)
70
2,050
4
39
591
184
(12)
(21)
74
2,170
14
62
602
185
(10)
(136)
72
2,112
9
51
2,093
2,245
2,172
1 All-In Sustaining Cost (AISC) is reported from the commencement of commercial production and is calculated on a recovered ounce
basis and comprises cash operating costs, sustaining capital and an allocation of corporate overheads. It does not include growth capital,
rehabilitation or share based payments.
Guidance for FY2023/2024
Gold production guidance for the period 1 July 2023 to 30 June 2024 is 65,000 to 75,000 ounces at an All-In
Sustaining Cost (AISC) of A$1,900 – A$2,100/oz. Production is expected to be weighted to the second half due to
a mill shut in Q1 for a partial re-line and higher-grade ore being accessed in H2 FY24.
Costs are forecast to be lower in H2 FY24 due to lower strip ratios. It is planned to exchange the 200 tonne digger
currently on site with a 100 tonne digger at the start of Q3 FY24 to reduce total BCM movement by approximately
100,000 BCM per month with associated costs reducing accordingly.
9
Annual Report for the Financial Year ending 30 June 2023
Review of Operations
Growth Projects
Exploration
Blue Spec
Calidus announced a maiden Reserve for Blue Spec as
a result of a positive Definitive Feasibility Study ('DFS').
The DFS contemplates building a new standalone
Sulphide Plant (separate to the currently operating
2.4mtpa CIL Processing Plant) which would initially
treat Copenhagen and then Blue Spec over a seven
year period.
The results of the DFS which support the Blue Spec
Reserve, coupled with the existing Copenhagen Reserve,
showed that the integration of these high-grade
satellite deposits into the operating WGP will generate
a significant increase in production and operational
cashflow for modest additional capital expenditure.
Highlights included:
ā Maiden Reserve for Blue Spec of 83,000 ounces
at 11.2g/t combined with a 17,000 ounce at 5.5g/t
Reserve at Copenhagen2 provides a combined
100,000 oz Reserve that will be treated via a
standalone sulphide processing plant to be located
at Warrawoona
ā The Sulphide Processing Plant will initially treat
Copenhagen and Blue Spec ore for a combined
7 years with additional feed possible from the
Coronation satellite pit at Warrawoona and other
exploration targets
ā Production contribution from the sulphide
processing plant is an average of 30,000 ounces
per annum, which is in addition to the operating
Warrawoona Gold Project
ā Permitting for Blue Spec is progressing
ā Calidus will use this permitting window to reduce costs
and advance the Sulphide Project to FID including
formal tender and award major scopes of work
New Gold Discovery at Felix – Located Along
Strike from Blue Spec
Following initial stream sediment sampling program,
2 drilling programs were undertaken at the Felix gold
discovery located 65km from Warrawoona and 5km
from the Blue Spec deposit.
The maiden drilling results show the likelihood of two
mineralisation styles:
ā high-grade shear-hosted gold possibly analogous to
the one ounce per tonne Blue Spec; and
ā lower-grade, broad zones of gold hosted in
sandstone.
Importantly, the bonanza-grade intercept in hole
22GORC016 is located only 25m below surface.
The results support Calidus’ strategy to grow the
inventory, production and mine life at the WGP by
defining and developing deposits within trucking
distance of Warrawoona.
Highlights of the drill campaigns at Felix included:
ā 6m @ 40.15g/t Au from 38m in 22GORC016
(including 1m @ 220.17g/t Au from 39m)
ā 41m @ 2.37g/t Au from 32m in 22GORC009
(including 5m @ 3.40g/t Au from 37m and 9m @
3.43g/t Au from 62m)
ā 7m @ 5.42g/t Au from 46m in 22GORC004
(including 2m @ 11.78g/t Au from 48m)
ā 22m @ 1.36g/t Au from 34m in 22GORC024
ā 15m @ 2.19g/t Au from 22m in 23GORC052
(including 1m @ 19.82g/t Au from 31m)
ā 10m @ 1.56g/t Au from 16m (including 2m @ 4.11g/t
Au from 23m) in 23GORC039
10
Figure 4: Location of holes from recent drilling at Felix on E46/1026
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Review of Operations
Figure 5: N-S Cross Section at Felix
west through Drillholes 22GORC008,
22GORC009 and 22GORC024 showing
significant Au intercepts (>0.5. g/t Au)
Calidus subsequently completed the farm-in on
tenement E46/1026. It now owns 100% of the
tenement following Gondwana Resources election to
convert its interest to a 1.5% net smelter royalty as is
allowed under the agreement.
Haoma Mining Joint Venture
Calidus signed a Binding Framework Agreement with
Haoma Mining NL ('Haoma') under which Calidus
may form a 60:40 joint venture covering any Haoma
tenements in the East Pilbara (1,135km2).
These tenements host numerous known high-grade
deposits including Bamboo Creek, Comet, Blue
Bar, Mickeys Find and Normay as well as numerous
stockpiles. The deposits are all within trucking
distance of Calidus’ WGP and all are located on
granted Mining Leases. The joint venture is aimed at
leveraging existing infrastructure at Warrawoona and
growing mine life, production rate and cashflow at
Warrawoona. The framework agreement sets out the
key terms which are intended to form the basis of the
binding terms for the proposed transaction.
11
119°30′E
120°0′E
Bamboo Creek
′
S
0
°
1
2
′
S
0
3
°
1
2
2
1
°
0
S
′
Mickey's Find
Normay
Marble Bar
Comet
North Shaw
Klondyke
Blue Bar
2
1
°
3
0
S
′
Port Hedland
Marble Bar
WESTERN AUSTRALIA
Perth
Kalgoorlie
Calidus Project Area
Calidus/Haoma JV Area
Gold Mine/Workings
Blue Spec
119°30′E
0
10
20 km
Nullagine
120°0′E
Figure 6: Location of JV with Haoma
Annual Report for the Financial Year ending 30 June 2023 Review of Operations
Pirra Lithium
Calidus owns 50% of Pirra Lithium Pty Ltd ('Pirra').
Pirra has extensive tenements in the Pilbara, covering
1,063km2 with potential for lithium discoveries.
The focus is on the same granites of the Split Rock
Supersuite and related pegmatites which host the large
Wodgina (MIN) and Pilgangoora (PLS) mines 75km
to the NW. It is intended to IPO Pirra in the coming
financial year to provide sufficient funds to provide for
an accelerated exploration programme.
In March 2023, the Company announced that it has
signed a Binding Terms Sheet ('Agreement') with
Haoma to fully combine the prospective lithium
landholdings of both companies. Calidus and Haoma
would each place additional lithium rights and
tenements into Pirra. Under the agreement both
companies will vend into Pirra their respective lithium
rights not already placed into Pirra. These additional
rights cover several highly prospective tenements in
the west Pilbara, including E45/2983, directly along
strike from the King Cole lithium pegmatite discovery
of De Grey Mining Limited (ASX: DEG). In addition,
Haoma will vend in additional tenements in the
West Pilbara surrounding Global Lithium Resources
Limited’s (ASX: GL1) Archer deposit. Calidus Otways
Pty Ltd will vend in two Exploration Licences in the
promising, but highly under-explored, Northampton
Inlier in WA’s Midwest region.
Under the revised Agreement, Haoma will hold 60% of
Pirra and Calidus 40%. Following the transaction, these
tenements and lithium rights will cover 1,303km2 in the
east Pilbara, 89km2 in the west Pilbara and 289km2 in
the Northampton Inlier (Figure 7).
The Company announced the results of the maiden
drilling program at Pirra Lithium’s Spear Hill discovery
located in the Pilbara region of Western Australia. The
initial drill program comprised 20 holes for 1,535m
and highlighted the untapped growth potential that
exists at the project. The program tested an exposed
pegmatite that has yielded rock-chip assays of 0.66%–
2.34% Li2O2 and a second poorly-exposed pegmatite
to the north.
Drilling has confirmed the continuation of the
outcropping body, more than 250m down dip with
ongoing technical assessment will be completed to
identify high priority target areas for Phase 2 drilling.
Significant intercepts included:
ā 2m @ 1.11% Li2O from 19m in 22PIRC026
ā 2m @ 1.09% Li2O from 5m in 22PIRC020
ā 2m @ 1.03% Li2O from 25m in 22PIRC031
ā 3m @ 0.95% Li2O from 4m in 22PIRC021
12
Figure 7: Location of Spear Hill and tenement holdings and lithium rights of Pirra Lithium.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Review of Operations
Figure 8: Mapped distribution of the lithium pegmatite at Spear Hill and the location of the 20 RC holes drilled
13
Investor Relations
Managing Director, David Reeves, presented at the
following conferences:
ā Diggers and Dealers Forum in Kalgoorlie, Western
Australia
ā Noosa Mining Investor Conference, Queensland
ā Euroz Hartleys Rottnest Institutional Conference,
Western Australia
ā Euroz Gold Day, Perth, Western Australia;
ā Resource Rising Stars Investor Conference, Perth,
Western Australia
ā The Gold Series in Melbourne and Sydney
ā Various investor Webinars
ā conducted various roadshows through Perth,
Melbourne and Sydney
Corporate
Cash Position
At 30 June 23, Calidus held cash and cash equivalents
of $26.0 million including $21.6 million of cash and
$4.4 million of bullion.
Project Loan Facilities
The Project Loan Facilities with Macquarie Bank
totalled $81.0 million at year end (2022: $107.0 million)
following repayments of $26.0 million during the year.
The total hedge position at the end of the year totalled
106,250 ounces with an average forward price of
A$2,367/oz for delivery progressively over the period
to September 2025. The hedge facility was reduced by
50,549 ounces during FY23.
Capital Raising
In August 2022, Calidus raised $20 million (before costs)
via a share placement to professional and sophisticated
investors at a price of $0.67 per share. In April 2023,
Calidus announced a $23.0 million share placement
to sophisticated investors and a Share Purchase Plan
(SPP) which closed in June 23 raising a further $1.8M
both at $0.21 per share. Investors under the placement
and SPP received one free attaching option for every
two new shares subscribed, with each option having an
exercise price of $0.30 and expiring 27 September 2024.
In addition, Macmahon Holdings Limited ('Macmahon')
(ASX:MAH) converted $10.5 million of its creditor position
under the mining services contract to equity at $0.21
per share. Macmahon is subject to a 6-month voluntary
holding lock and 6-month orderly market agreement.
Annual Report for the Financial Year ending 30 June 2023 Sustainability Report
Sustainability Report
At 30 June 2023
Sustainable Development
and Production
Sustainable Development and Production is at the
heart of our values at Calidus.
At Calidus, we work with transparency and trust,
supporting long-term economic growth and creating
shared value with our stakeholders. We respect the
human rights of all people, including our employees,
the communities where we are active, and those
working within our supply chains.
We acknowledge the environmental and cultural value
of the land in which we operate and mitigate potential
harm to the environment and ensure protection of
important cultural heritage values.
14
Health and Wellbeing
At Calidus, we care about the health and wellbeing of our
people, including our employees and contractors and
all stakeholders. We believe that a healthy and engaged
workforce is a conduit to becoming a safe, productive
and ultimately successful and sustainable business.
Calidus is committed to promote the physical and
mental health of our people through initiatives and
support systems, such as employee assistance programs
and the provision of onsite facilities to support a healthy
lifestyle and facilitate positive social interactions.
The Board and management team at Calidus build
an environment and culture to support the health
and wellbeing of all our employees and contractors
through visible and effective leadership.
Promotion of Health and Wellbeing
On site initiatives completed to date at Warrawoona
to promote Health and Wellbeing of staff and
contractors include:
ā Attendance of the DMIRS Psychosocial Wellbeing
workshop in Newman by a delegation of Safety
representatives, WHS Personnel and contractor
representatives
ā Participation in the WA mining industry
worker survey
ā Established a site psychosocial wellbeing committee
ā Completed a psychosocial wellbeing risk
assessment and created an action plan to improve/
sustain site wellbeing initiatives
Employee Assistance Programs
Calidus and its contractors provide access to
Employee Assistance Programs for all employees
and their families through work-based intervention
programs. These are designed to enhance the
emotional, mental and general psychological
wellbeing of employees and immediate family
members.
The aim of the Employee Assistance Programs is to
provide preventive and proactive interventions for the
early detection, identification and resolution of both
work and personal challenges that may adversely
affect performance and wellbeing.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 2023 Executive Remuneration Mix
Sustainability Report
Safety
Safety and health of our people is the most important
of our core values at Calidus.
Safety is embedded in everything we do at Calidus,
and we expect our employees and contractors to
always ensure their own safety and that of their
colleagues. We acknowledge that a risk-based
approach to managing hazards, incorporating regular
reviews and audits of our principal risks and controls is
essential to providing a safe and productive workplace
for our employees and contractors.
Safety Performance
We ensure that all employees and contractors have
the competency and skills required to work safely and
are provided with appropriate tools and information to
enable work to be conducted safely and productively.
Safety Statistics
The Warrawoona Gold Project has recorded three
injuries (one Lost Time Injury and two Alternate Duty
Injuries, with 1,195,086 hours worked by employees
and contractors during FY23, resulting in a Lost time
Injury Frequency Rate of 1.51, and a Total Reportable
Injury Frequency rate of 4.51.
R
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(
s
r
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o
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n
a
M
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2022
2023
Figure 9: Safety Performance
LTIFR
TRIFR
LTI
RDI
Manhours
15
Environment
At Calidus, we recognise the significant fauna and flora
of the Pilbara region. We have an extensive suite of
management plans and procedures to mitigate and
monitor our potential impacts to the environment.
Calidus adheres to environmental objectives and
regulations that seek to protect fauna, flora and
vegetation so that biological diversity and ecological
integrity are maintained. Each new greenfield project
and proposed operational expansion is subjected
to rigorous environmental baseline and impact
assessment studies, undertaken to a standard
consistent with best practice guidance to ensure our
projects minimise and avoid impacts to biodiversity
and other environmental values.
Calidus is committed to continually improve its
environmental and sustainability performance through
adaptive management of key risks to the environment
in which we operate.
Environmental Approvals
The Warrawoona Gold Project requires numerous
environmental approvals for both its Warrawoona and
the Blue Spec project areas.
Calidus has a suite of primary and secondary
environmental approvals for the Warrawoona Gold
Project including and not limited to a:
ā Ministerial Statement (conditional approval from the
WA State Government Environmental Protection
Authority)
ā Environment Protection of Biodiversity and
Conservation Approval (conditional approval
from the Commonwealth Department of Climate
Change, Energy, the Environment and Water
ā Mining Proposal and Mine Closure Plan
ā Works Approval for prescribed activities under the
Environmental Protection Act 1984
ā Groundwater Abstraction License
ā Native Vegetation Clearing Permits
Amendments and applications to these approvals
occur on an ongoing basis to ensure Warrawoona is
fully permitted through its project development. These
updates require continued baseline studies, research,
risk assessments and mitigation plans to support the
applications.
Blue Spec project approvals are under assessment and
include a:
ā Mining Proposal and Mine Closure Plan
ā Groundwater Abstraction License (granted)
The approval process entails continuous stakeholder
engagement to ensure appropriate project planning
and execution.
Annual Report for the Financial Year ending 30 June 2023
Sustainability Report
Environment continued…
Comprehensive Environmental
Baseline Studies
Calidus undertakes comprehensive environmental
baseline studies which underpins the identification
of the environmental aspects of the region in which
operate. These baseline studies are critical in the
development of environmental management plans
for our operations and mine closure. These baseline
studies incorporate the following scientific fields:
ā Flora and Vegetation
ā Terrestrial Fauna
ā Subterranean Fauna
ā Short Range Endemic Fauna
ā Groundwater Dependent Ecosystems
ā Ground water
ā Surface water
ā Waste Rock Characterisation
ā Tailings Characterisation
ā Climate and Meteorology
ā Green House Gas
ā Noise
As projects transition into production, Calidus
implements detailed monitoring procedures to ensure
compliance with all statutory requirements.
Ongoing Environmental Studies
and Monitoring
Calidus undertakes ongoing studies including
monitoring, sampling and reporting to identify impacts
of the Warrawoona Project on the environment. These
include monitoring and studies on the:
ā Local and regional significant bat populations
ā Local Northern Quoll populations
ā Groundwater Dependent Vegetation in the
regional borefield
ā Groundwater locally and regionally
We engage subject matter experts in a wide range
of activities including hydrogeologists, ecologists,
geochemists, botanists and other key fields to
independently review data to identify procedural
changes and better practice.
Green House Gas Emissions and Energy
Calidus recognises that climate-related risk impacts
our business, and we have a responsibility and
commitment to reduce our emissions. Calidus
carefully conducts and plans its operations to
incorporate carbon reduction strategies, reduce
energy usage and reduce carbon emissions.
Strategies identified to reduce emissions and progress
to date include:
ā Power for Warrawoona is sourced predominantly
from an onsite gas-solar-battery power station as
an alternate to diesel power generation. The power
station incorporates the installation of a 4MW solar
farm and a 3MW battery energy storage system
(battery currently being commissioned) to reduce
carbon emissions by approximately 17,000t per
annum. Liquid natural gas ('LNG') is sourced locally
to substitute diesel usage in power generation to
16
reduce carbon emissions by approximately 10,500t
per annum. The power station is designed to be
Hydrogen-ready to allow further reduction in
emissions as/when hydrogen fuel becomes available
in the future
ā Detailed mine planning is undertaken to design
mining operations to minimise heavy equipment
usage and length of haulage routes to decrease
operational fuel requirements
ā All flights from personnel to and from site on
commercial airlines are carbon offset through
contributions to airline carbon offset schemes.
Cyanide Destruction
Cyanide destruction infrastructure is installed at
the processing facility and is operated to enable
destruction of cyanide in tailings prior to discharge
from the process plant to minimise the potential
exposure to the environment and native wildlife.
Contribution to Pilbara Environmental
Offset Fund
Calidus contributes funds to the Pilbara Environmental
Offset Fund ('PEOF'). Calidus consults with the PEOF
team to ensure funds are allocated to the preservation
of significant bats species endemic to the Pilbara.
Native Wildlife Protection
Calidus has established and maintains a 32ha
conservation zone for the protection of native wildlife
in our mining area and has implemented extensive
management plans and monitoring of protected species
present within the boundaries of our tenements.
Water Capture and Recycling
The Warrawoona tailings dam is designed to recycle
water from operations and collect water from the site
catchment during rain events for use in the processing
plant to reduce pressure on local aquifers. In addition,
a thickener is installed at the processing facility to
recycle process water back to the plant to reduce
overall water requirements
Waste Recycling
Calidus continues to implement various schemes to
ensure waste is diverted from landfill and recycled.
Recyclable wastes are separated, temporarily stored
and then trucked off site when economic quantities
are reached. Hydrocarbon wastes are all removed
from site by a certified contractor who processes
waste oils through the latest re-refining technology to
achieve total re-use.
Mine Rehabilitation and Closure
All our operations work to keep land clearing and
ground disturbance to a minimum. Waste dumps are
carefully designed to blend in with the local relief to
limit their visual impact at mine closure.
Ongoing updates as part of mine development and
mine closure planning occurs to ensure Calidus can
achieve closure criteria of its operations.
Clean up and removal of historical contaminants
has occurred at the Blue Spec site reducing risks
associated with health to the public and employees.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Sustainability Report
Community
At Calidus, we acknowledge the traditional custodians
of the land in which we operate, the Nyamal and
Palkyu people, and recognise the strength, resilience
and capacity of the First People of this land.
We recognise that our long-term success depends on
our ability to build positive relationships with business
partners, local communities and other stakeholders
to maintain a social licence to operate. We engage
regularly, openly and honestly with our local
communities and stakeholders and take their views
and concerns into account in our decision-making.
We commit to maintaining community engagement,
seeking to provide local employment opportunities,
engaging local businesses, investing in local
infrastructure and supporting our local communities.
Cultural Heritage
Calidus is committed to engaging and consulting with
traditional owners to ensure protection of important
cultural heritage values and to maintain a positive
relationship with traditional owners.
Extensive heritage surveys involving traditional owners
as well as specialist archaeologists and anthropologists
take place in all areas of our operation. Sites of
importance are identified, mapped and demarcated.
Mine planning processes are modified to ensure all
identified heritage sites are protected from any current
and future impact of the development and operation
of the project.
Heritage surveys are undertaken on an ongoing
basis where there is future exploration and proposed
development activities to ensure heritage places and
sites are protected.
A key achievement of Calidus is that no heritage site
has been disturbed in the construction or operation of
Warrawoona, as heritage sites are incorporated into the
detailed planning and management of our operations.
17
Upgrading Local Infrastructure
A number of initiatives have been undertaken by
Calidus to upgrade local infrastructure providing
significant benefit to the local community including:
ā Extensive upgrade of the Marble Bar airstrip in
collaboration with the Shire of East Pilbara and Atlas
Iron
ā Significant upgrade to and ongoing maintenance of
the Corunna Downs Road
Support Local Business
and Community Events
A number of initiatives have been undertaken to support
local business and community events including:
ā Prioritisation of local contractors and employment
ā Active participation and sponsorship of key
community events
Sponsorships & Opportunities
for Local Employment
A number of initiatives have been undertaken to
provide sponsorships and opportunities for local
employment including:
ā Indigenous Arts Program at Marble Bar and
Warralong schools
ā Establish apprenticeships and other opportunities
for local indigenous people
ā Sponsorship of the Marble Bar Races and Marble Bar
Ball
ā Containers for change in partnership with Assetlink
with approximately $17,000 donated to the Marble
Bar Community Resource Centre
Annual Report for the Financial Year ending 30 June 2023 Sustainability Report
Diversity and Inclusion
Calidus is dedicated to workplace diversity and
inclusion at all levels of the Company regardless of
gender, marital or family status, sexual orientation,
gender identity, age, disabilities, ethnicity, religious
beliefs, cultural background, socio-economic
background, perspective and experience.
The Company recognises the benefits arising from
employee and Board diversity, including a broader
pool of high-quality employees, improving employee
retention, accessing different perspectives and ideas
and benefiting from all available talent.
Corporate Governance
Effective corporate governance is critical to the
long-term success of Calidus. The Board and all
levels of management are committed to upholding
a strong corporate governance framework, policies
and procedures of the highest standard, to support a
culture that values ethical behaviour and the conduct
of business with integrity and respect.
The Board oversees Calidus’ sustainability objectives
and is accountable for a positive corporate culture,
the achievement of high governance standards
and ensuring compliance with the legislative and
regulatory framework in which we operate.
Corporate Governance Framework
The Board is responsible for establishing the
Company’s Corporate Governance Framework and
has referred to the 4th Edition of the ASX Corporate
Governance Councils’ Corporate Governance
Principles and Recommendations. The Corporate
Governance Statement discloses the extent to which
the Company follows the recommendations.
The Boards’ Audit and Risk Committee oversees
the internal financial control systems and risk
management systems and assessments and makes
recommendations to the Board. In addition, the
Boards’ Remuneration and Nomination Committee
has oversight over the Company’s remuneration
framework to motivate the achievement of key
performance criteria and appropriate behaviours that
align with the Calidus values.
Statement of Values and Code of Conduct
Calidus instils and reinforces a culture across the
Company of acting lawfully, ethically and responsibly.
The Company seeks to operate in line with the values
set out below and ensure directors, senior executives
and employees work to reinforce these values:
ā To respect the rights and interests of native title
holders and Traditional Custodian groups to protect
and promote Indigenous history and culture
ā To safeguard our environment and protect
biodiversity for future generations
ā To maximise returns for our shareholders
ā To perform in a responsible and efficient manner in
the conduct of our work systems and procedures
ā To actively engage with all our stakeholders with a
focus on sustainable exploration and development
18
Inclusion refers to our diverse range of people feeling
welcomed, respected and valued to fully participate,
having access to opportunities and resources, and be
able to contribute their perspectives and talents to
drive the long-term sustainable business of Calidus.
Building a Diverse and Inclusive Workplace
The Board has established a Diversity Policy which
provides a framework for the Company to achieve
diversity objectives.
A key achievement for Calidus is that 29% of the
Warrawoona site based leadership roles and 25% of
Board representation is female.
ā To promote industry best practice, occupational health
and safety among our workers and business partners,
permanently controlling the risks inherent in our
operations. We will comply with applicable laws and
regulations of the jurisdictions in which we operate
ā To promote the ongoing care and protection of the
environment within which we operate
ā We acknowledge that our people are our greatest
asset and are thus committed to providing a safe
work environment, offering opportunity for personal
and professional development, and promoting self-
protection, austerity, ethics, integrity and honesty
The Company’s senior executives have the
responsibility for instilling these values across the
Company including ensuring that all employees
receive appropriate training in the values and
referencing and reinforcing the values in interactions
with employees.
Transparent Communication
Being transparent in relation to governance and risk is
fundamental to building and maintaining stakeholder
trust and investor confidence and underpins the
substance of our disclosures.
The Board is responsible for establishing and ensuring
compliance with the Company’s Continuous
Disclosure Policy, Securities Trading Policy and
Whistle-blower Policy.
Ethical Business Practice
Calidus is committed to upholding lawful and ethical
practices in our dealings with suppliers, stakeholders
and local communities.
The Board establishes and monitors compliance
with the Calidus values, Code of Conduct, and other
associated policies including an Anti-Bribery and
Anti-Corruption Policy and Whistle Blowing Policy.
The Boards’ objective is to ensure that all Directors,
management and employees are accountable, act
ethically and with integrity, in the best interests of our
shareholders, in compliance with all laws and Company
policies, and in alignment with community expectations.
A copy of the Corporate Governance Statement,
Corporate Governance Policies and charters are available
on the Company website: www.calidus.com.au/about/
corporate-governance
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Annual Mineral Resource & Ore Reserve Report
Annual Mineral Resource
& Ore Reserve Report
At 30 June 2023
In accordance with ASX Listing Rule 5.21, Calidus reviews and reports its Mineral Resources and Ore Reserves at
least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year
balance date. If there are any material changes to its Mineral Resources or Ore Reserves over the course of the
year, the Company promptly reports these changes.
Mineral Resources
Mineral Resources have decreased from 1.691Moz as
reported on 30 June 2022 to 1.400Moz at 30 June
2023, a decrease of 290koz. The key change is at
Klondyke Open Pit, where the Mineral Resource Model
(MRE) was updated for the first time since the March
2020 estimate that was used for the Warrawoona
Bankable Study in 2020.
The 2023 MRE update has now defined mineralised
volumes on the basis of manually interpreted
wireframes, allowing greater incorporation of
accumulated knowledge from observed structural
and geological controls; recorded in both drillhole
data and observations from open-pit mapping
during production. The result is tighter, more robust
constraints on mineralisation volumes and geometries.
This change also consolidates the modelling
approaches for both open-pit and underground
Mineral Resources at Klondyke. The Klondyke
underground MRE remains defined by highly
constrained wireframes, focussed solely on the main
mineralised domain, and so the reduction seen in the
Klondyke open pit Mineral Resource resulting from the
change in the modelling technique has not impacted
the underground MRE.
In addition, a updated Resource Model was completed
for Blue Spec in September 2022 as part of the
Feasibility Study which reduced the overall resource
compared to the historic estimate prepared by a
previous owner.
There have been no updates to the Klondyke
Underground, Copenhagen and Fieldings Gully Mineral
Resource Estimates and these are unchanged.
19
Table 1: Mineral Resources as at 30 June 2023 (inclusive of Reserves; rounded to nearest 100,000t; 0.01g/t; 1,000oz)
Deposit
Cut-Off
Measured
Indicated
Inferred
Total
(g/t)
Mt Au (g/t) KOz
Mt
Au (g/t) KOz
Mt
Au (g/t) KOz
Mt
Au (g/t) KOz
0.97
404
17.0
0.73
400
Klondyke Open Pit
including
Klondyke UG
including
Copenhagen
Coronation
Fieldings Gully
Blue Spec Project
0.3
0.5
1.5
2.0
0.5
0.5
0.5
Blue Spec
Gold Spec
Note
Note
1.1
1.02
0.98
1.1
36
34
13.0
11.0
1.0
0.7
0.2
0.6
0.3
0.1
0.1
1.07
2.87
3.36
5.58
1.88
1.80
31.1
31.5
0.02 30.1
377
10.6
89
72
34
34
16
95
71
24
1.8
1.2
0.1
0.2
0.3
0.1
0.1
0.1
0.94
3.31
4.08
2.65
1.24
1.87
20.0
21.2
17.9
320
162
130
9
9
20
96
66
30
31.1
22.5
2.7
1.9
0.3
0.8
0.6
0.2
0.2
0.1
0.84
840
1.01
2.83
3.33
4.54
1.69
1.84
24.3
25.5
21.8
731
250
202
43
43
36
190
136
54
Total
1.1
1.02
36
15.1
1.38
672
19.6
1.15
696
35.7
1.21
1,400
Note: Mineral Resources for Blue Spec were calculated utilising metal pricing, recoveries and other payability assumptions detailed in ASX
Announcement 29 September 2022 - "Maiden Blue Spec Reserve underpins expansion plan for Warrawoona"
Annual Report for the Financial Year ending 30 June 2023 Annual Mineral Resource & Ore Reserve Report
Ore Reserves
The Ore Reserve has decreased by 137koz owing to a combination of depletion and changes to the Mineral
Resource Estimate as outlined above.
Ore Reserves have been updated for Klondyke Open Pit, St George Open Pit and Fieldings Gully Open Pit. The
Ore Reserve for Klondyke Underground and Blue Spec Underground are unchanged as last reported on 22nd
September 2022.
Table 2: Ore Reserves as at 30 June 2023 (rounded to nearest 1,000t; 0.1g/t; 1,000oz)
Deposit
Cut-Off
Klondyke Open Pit
Klondyke Underground
St George Open Pit
Copenhagen Open Pit
Fieldings Gully
Blue Spec
Total
(g/t)
0.3
1.2
0.3
1.88
0.35
Note
Proven
Au (g/t)
1.0
koz
29
Mt
0.9
0.9
1.0
29
Probable
Au (g/t)
1.0
2.1
0.9
5.5
1.4
11.2
2.2
Mt
3.6
1.9
0.3
1.0
0.3
0.2
7.3
koz
109
120
9
17
13
83
351
Total
Au (g/t)
1.0
2.1
0.9
5.5
1.4
11.2
2.1
Mt
4.5
1.9
0.3
1.0
0.3
0.2
8.2
koz
138
120
9
17
13
83
380
Note: Mineral Reserves for Blue Spec were calculated on a cut-off using Net smelter return and Gold Equivalent using metal pricing,
recoveries and other payability assumptions detailed in ASX Announcement 29 September 2022 – "Maiden Blue Spec Reserve underpins
expansion plan for Warrawoona"
Governance Arrangements and Internal Controls
20
Calidus has ensured that the Mineral Resources and Ore Reserves quoted are subject to good governance
arrangements and internal controls. The Mineral Resources and Ore Reserves reported have been generated by
internal and external Company geologists, who are experienced in best practice in modelling and estimation
methods. The competent person has also undertaken reviews of the quality and suitability of the underlying
information used to generate the resource estimation. In addition, Calidus’ management carry out regular reviews
and audits of internal processes and external contractors that have been engaged by the Company.
Competent Persons Statement
The information in the report to which this statement
is attached that relates to the estimation and reporting
of gold Mineral Resources is based on information
compiled by Dr Matthew Cobb, a Competent Person
and a current Member of the Australian Institute
of Geoscientists (MAIG 5486). Dr Cobb is a full
time employee of Calidus Resources Limited and
a shareholder. Dr Cobb has sufficient experience
relevant to the style of mineralisation and deposit
type under consideration and to the activities being
undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Dr Cobb consents to the inclusion
in the report of matters based on his information in the
form and context in which it appears.
This Ore Reserve statement has been complied
in accordance with the guidelines defined in the
Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code
– 2012 Edition) and should read in conjunction of the
Section 4 - Estimation and Reporting of Ore Reserves
contained in Appendix A.
The Ore Reserve has been compiled by Stephen
O’Grady, Principal of Intermine Engineering
Consultants, who is a Member of the Australasian
Institute of Mining and Metallurgy. Mr O’Grady has had
sufficient experience in Ore Reserve estimation relevant
to the style of mineralisation and type of deposit under
consideration to qualify as Competent Person as
defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Mineral Resources and Ore Reserves.
Mr O’Grady consents to the inclusion in the report of
the matters based on the information in the form and
context in which it appears.
.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Annual Mineral Resource & Ore Reserve Report
21
Forward looking Statements and Disclaimers
This announcement does not constitute investment
advice. Neither this announcement nor the information
contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the
purchase or sale of shares in any jurisdiction. This
announcement does not take into account any person’s
particular investment objectives, financial resources
or other relevant circumstances and the opinions
and recommendations in this announcement are not
intended to represent recommendations of particular
investments to particular persons. All securities
transactions involve risks, which include (among others)
the risk of adverse or unanticipated market, financial or
political developments.
To the fullest extent permitted by law, Calidus
Resources Limited does not make any representation
or warranty, express or implied, as to the accuracy
or completeness of any information, statements,
opinions, estimates, forecasts or other representations
contained in this announcement. No responsibility
for any errors or omissions from this announcement
arising out of negligence or otherwise is accepted.
This announcement may include forward looking
statements. Forward looking statements are only
predictions and are subject to risks, uncertainties and
assumptions which are outside the control of Calidus.
These risks, uncertainties and assumptions include
commodity prices, currency fluctuations, economic
and financial market conditions in various countries
and regions, environmental risks and legislative, fiscal
or regulatory developments, political risks, project delay
or advancement, approvals and cost estimates. Actual
values, results or events may be materially different to
those expressed or implied in this announcement. Given
these uncertainties, readers are cautioned not to place
reliance on forward looking statements. Any forward
looking statements in this announcement speak only
at the date of issue of this announcement. Subject to
any continuing obligations under applicable law and
the ASX Listing Rules, Calidus does not undertake any
obligation to update or revise any information or any of
the forward looking statements in this announcement
or any changes in events, conditions or circumstances
on which any such forward looking statement is based.
Compliance Statement
The information in this announcement that relates to
Exploration Results and Mineral Resources released
previously on the ASX.
The Company confirms that it is not aware of any
new information or data that materially affects
the information included in the original market
announcements and that, in the case of mineral
resources estimates, all material assumptions and
technical parameters underpinning the estimates
continue to apply and have not materially changed.
The Company confirms that the form and context in
which the Competent Person’s findings are presented
have not been materially modified from the original
market announcements.
Annual Report for the Financial Year ending 30 June 2023 Tenement Schedule
Tenement Schedule
Calidus Resources & Subsidairies Tenement Schedule
Tenement
ID
Granted
Holder
Size
(ha)
Renewal
Location/Purpose
Ownership
/Interest
E45/3381
Keras (Pilbara) Gold Pty Ltd
7,802
16/03/2025 Warrawoona
E45/3615
Keras (Pilbara) Gold Pty Ltd
1,595
22/11/2024
Gardner
E45/4236
Keras (Pilbara) Gold Pty Ltd
957
19/10/2024
Gardner
E45/4555
Keras (Pilbara) Gold Pty Ltd
1,596
1/03/2027
Warrawoona North
E45/4622
Keras (Pilbara) Gold Pty Ltd
2,303
4/05/2027
Brockman
E45/4666
Keras (Pilbara) Gold Pty Ltd
1,929
23/11/2026
Cutty Sark/Trump
E45/4843
Keras (Pilbara) Gold Pty Ltd
941
2/07/2027
Salgash
E45/4856
Keras (Pilbara) Gold Pty Ltd
1,594
20/05/2023 Warrawoona Southwest
E45/4857
Keras (Pilbara) Gold Pty Ltd
1,275
20/05/2023 Warrawoona Southeast
E45/4905
Keras (Pilbara) Gold Pty Ltd
E45/4906
Keras (Pilbara) Gold Pty Ltd
638
319
29/11/2027 Warrawoona South
29/11/2027 Warrawoona South
E45/4934
Keras (Pilbara) Gold Pty Ltd
1,595
22/01/2028
Liberator
E45/5172
Keras (Pilbara) Gold Pty Ltd
4,291
30/05/2024 Marble Bar
22
E45/5747
Keras (Pilbara) Gold Pty Ltd
3,826
15/12/2026
Corunna
E45/5748
Keras (Pilbara) Gold Pty Ltd
5,112
15/12/2026 Moolyella East
E46/1421
Keras (Pilbara) Gold Pty Ltd
16,552
23/08/2027 White Quartz Hill Knob
E66/0122
Calidus Otways Pty Ltd
9,678
11/12/2027
Northampton North
M45/0240
Keras (Pilbara) Gold Pty Ltd
M45/0521
Keras (Pilbara) Gold Pty Ltd
M45/0547
Keras (Pilbara) Gold Pty Ltd
M45/0552
Keras (Pilbara) Gold Pty Ltd
M45/0668
Keras (Pilbara) Gold Pty Ltd
M45/0669
Keras (Pilbara) Gold Pty Ltd
M45/0670
Keras (Pilbara) Gold Pty Ltd
M45/0671
Keras (Pilbara) Gold Pty Ltd
M45/0672
Keras (Pilbara) Gold Pty Ltd
M45/0679
Keras (Pilbara) Gold Pty Ltd
M45/0682
Keras (Pilbara) Gold Pty Ltd
M45/1290
Keras (Pilbara) Gold Pty Ltd
M46/0115
Keras (Pilbara) Gold Pty Ltd
M46/0244
Keras (Pilbara) Gold Pty Ltd
P46/1972
Keras (Pilbara) Gold Pty Ltd
G45/0345
Keras (Pilbara) Gold Pty Ltd
G45/0347
Keras (Pilbara) Gold Pty Ltd
G45/0348
Keras (Pilbara) Gold Pty Ltd
6
18
18
10
242
102
113
119
116
121
236
150
931
18
195
439
2
36
17/11/2028
Copenhagen
10/03/2034
Fieldings Gully
2/05/2035
Klondyke
18/01/2035
Klondyke Queen
28/12/2037
Klondyke West
28/12/2037
Klondyke
29/12/2037
Klondyke
29/11/2037
Klondyke West
1/08/2037
Coronation
8/04/2038
Coronation West
17/04/2038
Copenhagen North
11/02/2042
Klondyke East
3/02/2033
Blue Spec
28/11/2042
Blue Spec Tails
15/12/2025
Blue Spec West
11/05/2041 Mine infrastructure
3/01/2042
Gap in M45/671
21/02/2042
Fieldings Gully infrastructure
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Calidus Resources & Subsidairies Tenement Schedule continued…
Tenement
ID
Holder
G45/0349
Keras (Pilbara) Gold Pty Ltd
L45/0523
Keras (Pilbara) Gold Pty Ltd
L45/0527
Keras (Pilbara) Gold Pty Ltd
L45/0564
Keras (Pilbara) Gold Pty Ltd
L45/0565
Keras (Pilbara) Gold Pty Ltd
L45/0566
Keras (Pilbara) Gold Pty Ltd
L45/0567
Keras (Pilbara) Gold Pty Ltd
L45/0573
Keras (Pilbara) Gold Pty Ltd
L45/0584
Keras (Pilbara) Gold Pty Ltd
L45/0585
Keras (Pilbara) Gold Pty Ltd
L45/0586
Keras (Pilbara) Gold Pty Ltd
L45/0587
Keras (Pilbara) Gold Pty Ltd
L45/0588
Keras (Pilbara) Gold Pty Ltd
L45/0590
Keras (Pilbara) Gold Pty Ltd
L45/0591
Keras (Pilbara) Gold Pty Ltd
L45/0592
Keras (Pilbara) Gold Pty Ltd
L45/0593
Keras (Pilbara) Gold Pty Ltd
L45/0613
Keras (Pilbara) Gold Pty Ltd
L45/0649
Keras (Pilbara) Gold Pty Ltd
L45/0666
Keras (Pilbara) Gold Pty Ltd
L45/0689
Keras (Pilbara) Gold Pty Ltd
L45/0698
Keras (Pilbara) Gold Pty Ltd
L45/0699
Keras (Pilbara) Gold Pty Ltd
L46/0178
Keras (Pilbara) Gold Pty Ltd
Applications
Size
(ha)
26
173
252
60
7
9
2
11
66
115
56
73
102
105
58
86
21
7
34
13
14
70
2
84
Tenement Schedule
Renewal
Location/Purpose
Ownership
/Interest
3/01/2042
Mine magazine
18/09/2040 Mine access and camp
23/02/2042
Corunna airstrip
24/11/2041
Fieldings Gully access
25/11/2041
Coronation access
24/11/2041
Coronation access
17/12/2041
Communications repeater
tower
100%
100%
100%
100%
100%
100%
100%
4/01/2042
Mine communications tower
100%
20/04/2042 Moolyella pipeline
6/04/2042
Moolyella pipeline
22/02/2042 Moolyella pipeline
6/04/2042
Moolyella pipeline
3/03/2042
Moolyella pipeline
22/02/2042
Atlas pipeline
28/03/2042
Atlas pipeline
22/02/2042
Atlas pipeline
4/01/2042
Atlas pipeline
100%
100%
100%
100%
100%
100%
100%
100%
100%
10/06/2042 Moolyella Heritage Diversion
100%
23
3/05/2043
Solar farm
13/10/2043
Brockman pipeline
4/01/2044
Brockman/Corunna
pipeline link
16/07/2044 Moolyella pipeline
16/07/2044 Moolyella pipeline
27/07/2044
Blue Spec pipeline
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
E66/0123
Calidus Otways Pty Ltd
19,267
Application
Northampton South
L45/0682
Keras (Pilbara) Gold Pty Ltd
L45/0683
Keras (Pilbara) Gold Pty Ltd
L45/0684
Keras (Pilbara) Gold Pty Ltd
L45/0685
Keras (Pilbara) Gold Pty Ltd
L45/0686
Keras (Pilbara) Gold Pty Ltd
L45/0697
Keras (Pilbara) Gold Pty Ltd
41
124
320
18
18
11
Application
Corunna pipeline
Application
Corunna pipeline
Application
Corunna pipeline
Application
Corunna pipeline
Application
Corunna pipeline
Application Moolyella pipeline
Joint Venture
E46/1026
Gondwana Resources Limited
3,797
9/05/2026
Gondwana
Earning 51%
L46/0022
Beatons Creek Gold Pty Ltd
L46/0024
Beatons Creek Gold Pty Ltd
60
9
16/08/2025
17/01/2026
Blue Spec
Blue Spec
Annual Report for the Financial Year ending 30 June 2023 Directors’ Report
Directors’ Report
The Directors of Calidus Resources Limited (Calidus or the Company) submit
their report on the results and state of affairs of Calidus and its subsidiaries
(collectively the Group), for the financial year ended 30 June 2023.
Directors
The names and information of Directors of Calidus in office during the
financial year and at the date of this report are:
24
Mr Mark Connelly
Independent Non-Executive Chairman
Qualifications
Bachelor of Business, ECU, MAICD, AIMM, Member of SME
Experience
Mark was previously Managing Director of Papillion
Resources and was instrumental in the US$570m
takeover of Papillon by B2Gold Corp in October
2014. Prior to Papillon, Mark was Chief Operating
Officer of Endeavour Mining Corporation, following its
merger with Adamus Resources Limited where he was
Managing Director and CEO. Mark was instrumental
in not only the merger, but procurement of project
finance and the development of the Nzema Mine in
Ghana into a +100Koz pa mining operation.
Special Responsibilities
Member of the Audit and Risk Committee and
Chairman of the Remuneration and Nomination
Committee
Interest in Shares and Options
ā 933,120 Fully Paid Ordinary Shares
ā 312,666 Options
Directorships held in other listed entities
ā Non-Executive Chairman of
Chesser Resources Limited (ASX)
ā Non-Executive Chairman of
Warriedar Resources Limited (ASX)
ā Non-Executive Chairman of
Omnia Metals Group Limited (ASX)
ā Non-Executive Chairman of
Nickelsearch Limited (ASX) (ASX)
ā Non-Executive Director of
Renegate Exploration Limited (ASX)
Past directorships in the last 3 years:
ā Non-Executive Chairman of
Oklo Resources Limited (ASX) (resigned May 2022)
ā Non-Executive Chairman of
Hyperion Metals Limited (ASX) (previously named Tao
Commodities Ltd) from 5 May 2017 to 18 February 2021
ā Non-Executive Chairman of
Primero Group Limited (ASX) from 25 May 2018
to 25 February 2021
ā Non-Executive Chairman of
West African Resources Ltd (ASX) from 23 June 2015
to 29 May 2020
ā Non-Executive Chairman of
Barton Gold Holdings Limited (ASX) from 21 February 2021
to 30 June 2022
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Directors’ Report
25
Mr David Reeves
Managing Director
Mr John Ciganek
Non-Executive Director
Qualifications
Mining Engineer Bachelor of Engineering (1st Class
honours), Grad Dip Applied Finance, WA Mine Managers
Certificate
Experience
Dave is a Perth-based, qualified mining engineer with
31 years of experience in the mining industry and was
the Non-Executive Chairman of European Metals
Holdings Limited (ASX and AIM). Dave has extensive
experience in international capital markets through his
involvement with various listed London and Australia
companies.
Dave was the Project Manager of Zimplats and Afplats
prior to their sale for a combined US$1 billion and
prior to this, worked with Delta Gold in Zimbabwe and
various gold companies in Western Australia in which
he assumed various roles, including the position of
Mine Manager.
Special Responsibilities: None
Interest in Shares and Options
ā 22,137,336 Fully Paid Ordinary Shares
ā 683,958 Options
Directorships held in other listed entities: None
Past directorships in the last 3 years
ā Non-Executive Chairman of European Metals Holdings
Limited (ASX & AIM) – resigned 30 June 2020
ā Non-Executive Director of Keras Resources Plc (AIM) -
resigned 1 September 2022
Qualifications
Bachelor of Mining Engineering, Wollongong University, NSW.
MBA Macquarie Graduate School of Management, NSW
Experience
John has more than 31 years in the mining sector across a
range of roles including mining engineering, stockbroking,
executive management and corporate finance.
Most recently, John gained substantial experience in
debt financings including project financings, project
bonds issuances, convertible note offerings, working
capital facilities, hedging facilities, off-taker funding,
and equity raisings through his role as Executive
Director for Burnvoir Corporate Finance.
John is currently Managing Director of Vanadium
Resources Limited (ASX: VR8)
Special Responsibilities:
Chairman of the Audit and Risk Committee and member
of the Remuneration and Nomination Committee
Interest in Shares and Options:
ā 66,667 Fully Paid Ordinary Shares
ā 207,221 NED Options
Directorships held in other listed entities:
ā Non-Executive Chairman of Ookami Limited (ASX)
ā Managing Director and CEO of Vanadium Resources
Limited (ASX) from 9 December 2022
ā Non-Executive Director of Vanadium Resources Limited
(ASX) from 18 December 2020 to 9 December 2022
Past directorships in the last 3 years: None
Annual Report for the Financial Year ending 30 June 2023 Directors’ Report
Directors continued…
Ms Kate George
Non-Executive Director
Qualifications
Bachelor of Science (Environmental) with First Class
Honours from Murdoch University and is a qualified
Auditor of Integrated Management Systems (RABQSA,
QM, EM, OH).
Experience
Kate has more than 20 years’ experience in
environmental management within government and
industry, working with small midcap miners to major
resource companies. Kate’s key experience includes
development of environmental permitting strategy
and the coordination of ecological survey via Western
Australian consulting firm Rapallo.
Special Responsibilities
Member of the Remuneration and Nomination
Committee and the Audit and Risk Committee
Interest in Shares and Options
ā 306,527 Fully Paid Ordinary Shares
ā 123,334 Options
Directorships held in other listed entities: None
Past directorships in the last 3 years: None
Company Secretary
Ms Julia Beckett was appointed Company Secretary of the Company on 24 September 2018. Julia holds a
Certificate in Governance Practice and Administration and is a Member of the Governance Institute of Australia.
Meetings of Directors and Committees
The number of Directors’ Meetings (including meetings of Committees of Directors) held during the year ended
30 June 2023, and the number of meetings attended by each Director whilst in office are as follows:
26
Directors’ Meetings
Audit Committee
Remuneration Committee
Number
Eligible to
Attend
Number
Attended
Number
Eligible to
Attend
Number
Attended
Number
Eligible to
Attend
Number
Attended
Dave Reeves
Mark Connelly
John Ciganek
Kate George
8
8
8
8
8
8
7
7
-
2
2
2
-
2
2
2
-
-
-
-
-
-
-
-
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Directors’ Report
Securities
Listed Options
At the date of this report, the listed options of Calidus Resources Limited are as follows:
Grant Date
27-Jun-2023
10-Jul-2023
Date of Expiry
Exercise Price
Number under Option
27-Sep-24
27-Sep-24
$0.30
$0.30
54,878,265
4,181,006
59,059,271
Unlisted Options
At the date of this report, the unissued ordinary shares of Calidus Resources Limited under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
25-Nov-19
4-Jan-21
14-Mar-22
14-Mar-22
26-May-22
26-May-22
26-May-22
6-Jun-23
6-Jun-23
30-Jan-25
4-Jan-25
31-Dec-23
31-Dec-24
31-Dec-23
31-Dec-24
31-Dec-25
31-Dec-25
31-Dec-26
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,350,000
133,333
180,295
2,617,403
2,407
904,365
287,074
122,981
9,380,446
14,978,304
Options Cancelled During the Period
Date
11-Oct-23
11-Oct-23
13-Jan-23
13-Jan-23
15-Feb-23
01-May-23
06-Jun-23
Date of Expiry
Exercise Price
Number under Option
27
31-Dec-23
31-Dec-24
31-Dec-23
31-Dec-24
31-Dec-23
31-Dec-24
31-Dec-24
Nil
Nil
Nil
Nil
Nil
Nil
Nil
51,150
68,200
638,839
73,334
502,501
60,500
396,614
1,791,138
Shares Issued on Exercise of Options
During the financial year, the Company issued ordinary
shares as a result of the exercise of options as follows:
Exercise Date
Issued Price of
the Shares
Number of
Shares Issued
Dividends
No amounts were paid by way of dividends since the
end of the previous financial year (FY22: Nil). At this
time of this report, the Directors do not recommend
the payment of a dividend.
5-Jul-22
11-Jul-22
18-Jul-22
12-Aug-22
01-Dec-22
12-Jan-23
17-Jan-23
31-Jan-23
15-Jan-23
28-Apr-23
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
3,346,300
820,000
300,000
100,000
150,000
452,716
840,749
130,355
195,315
60,500
Annual Report for the Financial Year ending 30 June 2023Annual Report for the Financial Year ending 30 June 2023 Directors’ Report
Operating and Financial Review
Principal Activities
The principal activities of the Company during the
financial year gold mining and mineral exploration.
Results from Operations
For the 2023 financial year the Group result was a net
loss after tax of $6,113,892 (2022: $8,720,509). The
current year results include a mine gross profit for the
first 6 months of operations of $7,082,674 (2022: $0)
and an underlying unaudited EBITDA of $2,455,636
(2022: ($6,766,459).
A calculation of EBITDA is as follows:
Sales Revenue
Cash costs of production
Royalties
Administration (excluding depreciation)
Share based payments
Environmental rehabilitation adjustment/(expense)
Exploration expenditure written off
Loss on financial assets Unrealised Gain/Loss – Shares
Underlying EBITDA
2023
$
80,512,129
(68,771,950)
(2,262,345)
2022
$
-
-
-
(4,207,474)
(3,340,225)
(2,812,711)
(2,380,222)
96,255
(64,156)
(34,112)
(80,178)
(772,053)
(193,781)
2,455,636
(6,766,459)
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
28
Operating Review
During the year Calidus completed commissioning
and ramp up of the 2.4mtpa processing plant to name
plate capacity which culminated in the achievement
of steady state operations and the declaration of
commercial production at Warrawoona at the end of
December 2022. The processing plant operated above
nameplate 300tph capacity at average gold recovery
over 95% for extended periods of time. Mining activity
was centred at the Klondyke open pit.
Warrawoona achieved record quarterly production
for the June 2033 quarter producing 16,177 ounces of
gold at an all-in sustaining cost (AISC) of $2,245/oz.
This resulted in the company achieving its production
and cost guidance for the H2 FY23 with 31,364 ounces
produced at an AISC of $2,172/oz.
Refer to the "Review of Operations" on page 7 for
further details.
Financial Review
Income Statement
The Group recorded an operating loss of $339,315
(2022: $7,497,276) and a net loss after tax of $6,113,892
(2022 $8,720,509). Following the declaration of
commercial production the Group sold 31,469 ounces
of gold which resulted in revenue of $80,213,724 and
incurred cost of goods sold of $73,429,455 comprising
cash costs of production, royalties, depreciation and
amortisation and changes in inventories.
Balance Sheet
The net assets of the Group have increased from
$101,815,334 to $151,744,142M at 30 June 2023.
The net increase in total assets was driven by
commissioning and operation of Warrawoona and
$26,000,000 repayment of loan facilities.
As at 30 June 2023, the Group’s cash and cash
equivalents increased by $3,485,384 to $21,621,721 at
30 June 2023 (2021: $18,136,337) and had working
capital position of ($746,670) (2021: $1,295,419). Refer
to "Note 21C" on page 59.
Significant Changes in the State of Affairs
Refer to the "Review of Operations" on page 7 for the significant changes in the state of affairs of the Group
that occurred during the financial year.
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI Directors’ Report
Events Subsequent to Reporting Date
ā On 11 July 2023, Calidus announced the positive
drilling results at its Felix gold discovery in the Pilbara.
increase near-term production by mining the Blue
Bar Gold Project.
ā On 14 August 2023, Calidus announced the
preliminary studies of tenements comprising the
Haoma JV had identified a significant opportunity to
ā On 11 September 2023, Calidus announced the final
approval had been received to commence mining
the Blue Spec project.
Business Strategy, Prospects and Future Developments
Business Strategy
The Company’s strategy is to be a profitable gold
company that delivers superior returns to shareholders
over the long term.
The focus of the Company during the year was the
commissioning, optimisation and operation of the
100% owned Warrawoona Gold Project (Warrawoona
or the Project) in the East Pilbara district of the Pilbara
Goldfields in Western Australia. The Company declared
commercial production at the end of December 2022
and achieved guidance for H2 FY23 at Warrawoona.
The Company’s objectives are to:
ā Further optimise operations to maximise operating
cash flow whilst maintaining a high standard of
safety and responsibility
ā Organically grow the production rate at
Warrawoona by:
ā increasing the Reserves and Resources through
exploration activity across the tenement package
ā advance the Klondyke underground and Blue
Spec project towards development
ā Actively pursue inorganic growth opportunities
ā Increase the value of Pirra Lithium through exploration
and a demerger process
Material Business Risks
The Group is exposed to business risks that have
the potential to impact the achievement of business
strategies. The following risks are not intended as an
exhaustive list of all business risks and uncertainties.
ā External Economic Factors: The Group is exposed
to fluctuations in the Australian dollar gold price
which can impact on revenue streams from
operations. To mitigate downside in the gold price,
the Board has implemented a hedging program to
assist in offsetting variations in the Australian dollar
gold price over a portion of future production. In
addition, the Group is exposed to global inflationary
pressures across a range of input costs such
as oil, parts and consumables and labour. The
Group monitors costs and mitigates impacts by
collaborating with suppliers and managing its usage
of inputs
ā Reserves and Resources: The Mineral Resource
Estimates and Ore Reserve Estimates are estimates
only and no assurance can be given that future
production will achieve expected tonnages and
grades. The estimates are determined in accordance
with JORC and compiled or reviewed by a qualified
competent person
ā Government regulation: The Group’s mining,
processing, development and exploration activities
are subject to various laws and statutory regulations
governing prospecting, development, production,
taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances,
land use, water use, communications, land claims
of local people and other matters. No assurance
can be given that new laws, rules and regulations
will not be enacted or that existing laws, rules
and regulations will not be applied in a manner
which could have an adverse effect on the group’s
financial position and results of operations. Any
such amendments to current laws, regulations
and permits governing operations and activities
of mining and exploration, or more stringent
implementation thereof, could have a material
adverse impact on the Group
ā Exploration and development risk: An ability to
sustain or increase the current level of production
in the longer term is in part dependent on the
success of the group’s exploration activities and
development projects, and the expansion of
existing mining operations. The exploration for,
and development of, mineral deposits involves
significant risks that a combination of evaluation,
experience and knowledge may not eliminate.
Major costs may be required to locate and establish
mineral reserves, to establish rights to mine the
ground, to receive all necessary operating permits,
to develop metallurgical processes and to construct
mining and processing facilities at a particular site
ā Operating risk: The Group’s gold mining operations
are subject to operating risks that could result in
decreased production, increased costs & reduced
revenues. These include geological conditions,
technical difficulties, securing and maintaining
tenements, weather, residue storage and tailings
storage facility failures and construction of efficient
processing facilities. The operation may be affected
by force majeure, fires, consumable and labour
disruptions and availability, landslides, the inability to
obtain adequate machinery, engineering difficulties
and other unforeseen events. In addition, reserves and
resources are based on estimates of grade, volume
and tonnage. To manage these risks the Company
seeks to attract and retain high calibre employees,
engage capable contractors and consultants and
implement appropriate systems and processes
29
Annual Report for the Financial Year ending 30 June 2023 Directors’ Report
Business Strategy, Prospects and Future Developments continued…
ā Climate change risk: Changes to climate-related
regulations and government policy, reduced
water availability, extreme weather events and
associated technological and market changes may
have the potential to impact the Group’s future
financial results. Calidus is committed to proactively
managing the impact of climate related risks to our
business. This includes integrating climate related
risks, emissions and energy considerations into our
strategic planning and decision making
ā Environmental risk: The Group has environmental
liabilities which arise as a consequence of
mining operations, waste management, tailings
management, chemical management, water
management and energy efficiency. The Group
monitors its ongoing environmental obligations and
risks and implements rehabilitation and corrective
actions as appropriate, through compliance with its
environmental management systems
ā Health and safety risk; The Group seeks to ensure
that it provides a safe workplace to minimise risk of
harm to its employees and contractors. Calidus has
implemented management systems to promote a
strong safety culture and deliver appropriate training
and emergency preparedness
ā Legal compliance and maintaining title risk: The
Group has systems and processes in place to ensure
title to all its properties, but these can be subject to
dispute or unforeseen regulatory changes
ā COVID-19: The COVID-19 remains unpredictable,
and the Group will continue to monitor and
manage for potential impacts, particularly around
labour availability. The Group maintains a range
of measures across its business consistent with
advice from State and Federal health authorities and
commensurate with the community risk profile.
Environmental Regulation and Performance
Mining and exploration operations in Australia are subject to environmental regulation under the laws of the
Commonwealth and the State of Western Australia. The Company holds various environmental licences issued
under these laws, to regulate its mining and exploration activities. The Company’s current activities generally involve
disturbance associated with mining activities and exploration drilling programmes in Australia. All environmental
performance obligations are monitored by the Board of Directors and subjected from time to time to Government
agency audits and site inspections.
Non-audit Services
No non-audit services were provided to the Company
during or since the end of the financial year.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring
proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for
the purpose of taking responsibility on behalf of the
Company for all or any part of those proceedings.
The Company was not a party to any such proceedings
during the year.
30
Indemnification and Insurance of Directors
and Officers
The Company has given an indemnity or entered into
an agreement to indemnify, or paid or agreed to pay
insurance premiums as follows:
ā The Company has entered into agreements to
indemnify all Directors and officers and to provide
access to Company documents. The agreement
provides for the Company to indemnify all losses or
liabilities incurred by each Director or officer in their
capacity as Director or officers of the Company to
the extent permitted by the Corporations Act 2001
ā The Company has paid premiums to insure each
Director or officer against liabilities or costs incurred
by them in defending any legal proceedings arising
out of their conduct while acting in the capacity
of Director or officer of the Company, other than
conduct involving a willful breach of duty in relation to
the Company. Under the terms and conditions of the
insurance contract, the nature of the liabilities insured
against and the premium paid cannot be disclosed
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Remuneration Report
31
Remuneration Report
1. Remuneration Report (audited)
The Directors present the Calidus Resources Limited 2023 Remuneration Report, outlining key aspects of the
remuneration policy and framework, and the remuneration awarded to each of the Key Management Personnel
of Calidus Resources Limited (Calidus or the Company) this year. The information in this remuneration report has
been audited as required by s308(3C) of the Corporations Act 2001.
A. Key Management Personnel
Key Management Personnel have authority and
responsibility for planning, directing and controlling
the activities of the Group (KMP). KMP comprise
the Directors of the Company and key Executive
personnel.
The following Non-Executive Directors (NEDs)
and Executives were KMP during the year ended
30 June 2023:
ā Mr Mark Connelly Non-Executive Chairman
ā Mr David Reeves
Managing Director
ā Mr John Ciganek
Non-Executive Director
ā Ms Kate George
Non-Executive Director
ā Mr Don Russell
General Manager
Warrawoona Operations
ā Mr Richard Hill
Chief Financial Officer
ā Mr Paul Brennan
Chief Operating Officer
B. Remuneration Governance
The Board has adopted a formal Remuneration &
Nomination Committee Charter which provides a
framework for the consideration of remuneration
matters. The Remuneration & Nomination Committee
is a sub-committee of the board and is responsible for
reviewing and making recommendations to the Board
which has ultimate responsibility for the following
remuneration matters:
ā Setting remuneration packages for Executive
Directors, Non-Executive Directors and Executives;
ā Non-Executive and Executive appointments; and
ā Implementing employee incentive and equity based
plans and making awards pursuant to those plans.
C. Remuneration Policy
Remuneration policy is approved by the Board of the
Company and has been designed to ensure reward
for performance is competitive and appropriate to the
result delivered. The remuneration policy is reviewed
by the Board and the Remuneration & Nomination
Committee for suitability to the business and market
on an ongoing basis.
KMP are remunerated and rewarded in accordance
with the Company’s remuneration policies (outlined in
further detail below).
D. Engagement of Remuneration
Consultants
During the 2022 financial year (FY22), the Company
engaged BDO Reward (WA) Pty Ltd (BDO),
independent remuneration consultants, to review the
appropriateness and recommend improvements to
the Company's remuneration policy in comparison to
the market. The total for these services amounted to
$12,408.
In the current financial year, the Nomination &
Remuneration Committee has benchmarked KMP
remuneration using external independent industry
reports and data to ensure that remuneration levels are
competitive and meet the objectives of the Company.
E. Voting at the Company’s 2022 Annual
General Meeting
The Company received 97.24% votes in favour of its
remuneration report for the 2022 financial year.
Annual Report for the Financial Year ending 30 June 2023
Remuneration Report
2023 Executive Remuneration Mix
2. Executive Remuneration
A. Executive Remuneration Strategy
and Policy
The Board aims to ensure that Executive reward
satisfies the following key criteria for good reward
government practices:
ā Competitive and reasonable enabling the Company
to attract and retain high calibre talent
ā Aligned to the Company’s strategic and business
objectives and the creation of shareholder value
ā Structured to have a suitable mix of fixed and
performance related variable components
ā Transparent and easily understood
ā Acceptability to the shareholder
45%
23%
32%
STI at Risk
LTI at Risk
Fixed
Remuneration
Figure 10: 2023 Executive Remuneration Mix at
the Maximum Opportunity
The Company’s remuneration policy for Executive
Directors and Executives is designed to ensure that
remuneration is competitive, performance-focused
and links appropriate reward with achievement of
business objectives, promotes long-term commitment
to the Company and is simple to administer and
understand by Executives and shareholders.
The Company’s reward structure provides for a
combination of fixed and variable pay with the
following components:
ā Fixed remuneration in the form of base salary,
superannuation and benefits
ā Variable remuneration in the form of short-term
incentives (STI) and long-term incentives (LTI)
In accordance with the Company’s objective to ensure
that executive remuneration is aligned to Company
performance, a portion of Executives’ remuneration
is placed “at risk”. The relative proportion FY23 total
remuneration packages split between the fixed and at
risk remuneration is shown in Figure 10.
32
Safety Performance
B. 2.2 Executive Service Agreements and
FY23 Fixed Remuneration
R
F
I
R
T
/
F
R
I
T
L
6
12
Remuneration and other terms of employment for
Executives are formalised in service agreements. There
is no fixed term for Executive service agreements.
The Company may terminate service agreements
immediately for cause, in which case the Executive is
not entitled to any payment other than the value of
fixed remuneration and accrued leave entitlements up
to the termination date.
10
8
4
Fixed remuneration is set at a level that is
benchmarked and aligned to the market and reflective
of Executives’ skills, experience, responsibilities and
performance. This is to ensure that the Company’s
remuneration arrangements remain competitive
against peer companies to assist with the retention
and attraction of key talent. All Executives are entitled
to participate in the Company’s STI and LTI plans.
NOV
OCT
AUG
2022
JUL
SEP
0
2
DEC
6
5
4
3
2
1
0
)
s
d
n
a
s
u
o
h
T
(
s
r
u
o
h
n
a
M
JAN
FEB
MAR
APR
MAY
JUN
2023
A summary of the key terms of service agreements and
remuneration for Executives in FY23 is set out below.
LTIFR
TRIFR
LTI
RDI
Manhours
Name
D Reeves 1
Managing Director
D Russell
General Manager
Warrawoona Operations
R Hill
Chief Financial Officer
P Brennan
Chief Operating Officer
Base Salary
excl. super
Term of
agreement
Company/ Employee
Notice Period
Termination benefit
$479,000
Until terminated
6 / 6 months
6 months’ base salary
$410,000
Until terminated
6 / 6 months
6 months’ base salary
$360,000
Until terminated
6 / 6 months
6 months’ base salary
$330,000
Until terminated
3 / 3 months
3 months’ base salary
1 The Company agreed to pay Mr. D Reeves a base salary of $479,000. Mr D Reeves personally elected to decrease the base salary
component of his remuneration package to $420,000 for FY23.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023
Remuneration Report
2. Executive Remuneration continued…
C. Short Term Incentives
The purpose of the STI plan is to link the achievement of key short term Company targets with the remuneration
received by those Executives charged with meeting those targets. The STI plan provides eligible employees with the
opportunity to earn a bonus if certain financial and non-financial key performance indicators (KPIs) are achieved. All
Executives are eligible to participate in the STI plan. The STI is payable in either cash or a combination of cash and
shares at the Board’s election. The Nomination & Remuneration Committee, in conjunction with the Board, sets and
reviews the KPI targets and determines applicable awards for Executives.
A summary of the KPI targets set for FY23 and their respective weightings are as follows:
KPIs 2
Weighting
Measure
1 - Safety and Environment
2 - Production
3 - Costs
25%
50%
25%
Safety and Environmental Incidents
Gold Production relative to budget
Cash Operating Cost / Ore tonnes milled relative to budget
2 For FY 23 the KPIs are set on a quarterly basis with any accrued STI paid annually.
The maximum target opportunity for Executives in FY23 was 50% of total fixed remuneration (TFR). A summary of
the maximum target STI and the STI awarded to each Executive for FY23 is as follows:
Executive
Position
D Reeves
Managing Director
D Russell
General Manager Warrawoona Operations
R Hill
Chief Financial Officer
P Brennan
Chief Operating Officer
Maximum STI
STI Awarded
50%
50%
50%
50%
$231,000
$194,500
$172,000
$152,000
9%
9%
9%
9%
$41,547
$33,741
$29,838
$26,368
D. Long Term Incentives
The Employee Share Incentive Plan (ESIP) was most
recently approved by shareholders at the General
Meeting of shareholders held on 9 November 2022.
The ESIP provides the Company with the flexibility
to issue incentives in the form of either options or
performance rights which may ultimately vest and
be converted into shares on exercise, subject to
satisfaction of any relevant vesting conditions.
The ESIP provides a means for motivating senior
employees to pursue long-term objectives and seek
to achieve growth of the share price and the creation
of shareholder value. The Company is in an important
stage of development with significant opportunities
and challenges in both the near and long-term.
The ESIP contributes to attract and maintain highly
experienced and qualified executives. As competition
for executive talent within the mining industry remains
extremely tight, the retention of key staff is considered
a key priority for the Company.
In FY23 an allocation of zero exercise price options
(ZEPO) were issued under the terms of the ESIP to
Executives in respect of the LTI component of their
FY23 remuneration. The quantum of ZEPOs was
determined by reference to a share price of $0.21
per share. The ZEPOs granted to Executives in FY23
vest subject to the achievement of the following
performance conditions:
ā one half of the ZEPOs will vest subject to the
share price performance of the Company relative
to the performance of a peer group of ASX gold
companies based on total shareholder return (TSR)
over the 2 year period from 1 January 2023 to 31
December 2024. The Peer Group comprises the
following ASX gold companies: WGX; ALK; OBM;
RMS; DEG; BGL; AMI; GOR; RRL; SLR; CMM; DCN;
RED; SBM; PNR; GCY. Companies may be included
or excluded on this list to reflect changes in the
industry. The relevant Executive must remain
employed by the Company at the date of vesting.
The proportion of executive rights that vest is
dependent on how the Calidus TSR compares to the
peer group as follows:
Relative TSR
Proportion of
Options that
will Vest
Below the 25th percentile
At the 25th percentile
0%
25%
Between the 25th and 75th
percentile
Pro-rata between
25% and 100%
At and above the 75th
percentile
100%
ā one half of the ZEPOs will vest subject to the Executive
providing continuous service to the Company and
remaining employed or engaged by the Group at all
times until the end of 31 December 2024
Where an Executive ceases to be an employee of
the Company, any unvested ZEPOs will lapse on the
date of cessation of employment, except in limited
circumstances that are assessed and approved by the
Board on a case by case basis.
33
Annual Report for the Financial Year ending 30 June 2023 Remuneration Report
2. Executive Remuneration continued…
The Executive ZEPOs that were granted and or vested during FY23 are detailed in the following table:
ZEPOs Measured for Vesting in FY23 2
Executive
Position
Number
of ZEPOs
Granted in
FY23
Number
of ZEPOs
Measured
Percentage
Vested
D Reeves
Managing Director
0 1
341,979
D Russell
General Manager
Warrawoona Operations
1,426,333
280,729
R Hill
Chief Financial Officer
1,261,334
P Brennan
Chief Operating Officer
1,114,667
250,104
222,882
33%
33%
33%
33%
Number
ZEPOs
Vested
Number
ZEPOs
Expired
113,982
227,997
93,567
187,162
83,360
74,287
166,744
148,595
1 The grant of ZEPOs for D Reeves is subject to shareholder approval. Shareholder approval was not sought during FY23.
2 ZEPOs measured for vesting were issued in prior financial years.
E. Relationship Between Remuneration of KMP and Earnings
The Nomination & Remuneration Committee considers a number of criteria to assess the performance of
the Company. Criteria used in this assessment include maximising cashflows, managing risk, execution of
development projects, exploration success and share price performance. The Company’s remuneration practices
reflect the achievement of certain of the Company’s and Executive’s performance objectives. The Company’s
overall objective for FY23 has been to achieve commercial production at Warrawoona, maximise cash flow,
increase operating margins and pursue growth opportunities.
3. Non-Executive Director (NED) Remuneration
A. NED Remuneration Policy
The Company’s Constitution provides that NEDs are
entitled to be remunerated for their services. The total
aggregate fixed sum per annum to be paid to NEDs
from time to time will not exceed the sum determined
by the shareholders in general meeting. The maximum
NEDs’ fees payable in cash, is currently set at $250,000
per annum in aggregate.
No retirement benefits are provided for NEDs other
than statutory superannuation contribution.
The NEDs are entitled to be paid reasonable travelling,
accommodation and other out of pocket expenses
incurred as a result of their duties as NEDs.
In FY22 the Company engaged BDO, independent
remuneration consultants, to conduct a market
review of the total fixed remuneration (TFR) packages
of NEDs. Based on advice received from BDO the
remuneration structure for NEDs has the following
components:
ā Annual board fees
ā Equity based fees in lieu of fixed fees
The equity-based fees to be considered for NEDs will
not be subject to performance conditions (other than
a period of service) which conforms with best practice
governance standards, including the ASX Corporate
Governance Council’s Principles.
B. NED Service Agreement and FY 23 Fees
All NEDs enter into a service agreement with the
Company in the form of a letter of appointment. The
letter of appointment provides that a NED may resign
from his/her position and thus terminate their contract
on written notice to the Company. In addition to the
service agreement a NED may, following resolution of
the Company’s shareholders, be removed before the
expiration of their period of office (if applicable).
NED fees during FY23 are detailed in the following table:
NED
Position
Fee FY23
M Connelly Non-Executive Chair
$72,000
J Ciganek Non-Executive Director
$48,000
K George
Non-Executive Director
$48,000
C. NED Options for Fixed Remuneration
Correction Plan
In FY22 BDO conducted a market review of the total
fixed remuneration (TFR) packages of NEDs. The
market review identified that NED remuneration
packages were at a discount to the market median.
At the recommendation of BDO, in FY22 the
Company implemented a forward looking 3 year fixed
remuneration correction plan for NEDs and provided
an equity allocation in the form of ZEPOs issued
under the ESIP to ensure that the NED remuneration
packages were market appropriate (NED Options).
The NED Options issued in FY22 were approved
at a meeting of shareholders on 13 May 2022 and
represented equity in lieu of fees and serves to ensure
NEDs are remunerated at market related rates whilst
conserving the Company’s cash. The vesting condition
for ZEPOs issued to NEDs in FY22 is that the NED must
remain with the Company, with a third of the ZEPOs
vesting at the end of each subsequent calendar year.
In FY23 no ZEPOs, share rights or performance rights
were granted to NEDs.
34
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 3. Non-Executive Director (NED) Remuneration continued…
Remuneration Report
The NED ZEPOs that are subject to the Fixed Remuneration Correction Plan that were granted and or vested
during FY23 are detailed in the following table:
NED
Position
ZEPOs Measured for Vesting in FY23 1
Number
of ZEPOs
Granted
during FY23
Number
of ZEPOs
measured
for Vesting
Percentage
Vested
Number
ZEPOs
Vested
Number
ZEPOs
Expired
M Connelly Non-Executive Chair
J Ciganek
Non-Executive Director
K George
Non-Executive Director
0
0
0
156,334
69,074
56,527
100%
100%
100%
156,334
69,074
56,527
0
0
0
1 ZEPOs measured for vesting were issued in prior financial years, No ZEPOs were issued in FY23.
4. KMP Remuneration Disclosure
Details of the remuneration of Executives comprising the KMP of the Company for FY23 and FY22 are as follows:
Fixed Remuneration
Variable Remuneration
Executive
Year
Salary and
Leave
Other
benefits
Super-
annuation
STI Cash
Payments
Rights
Options 1
Total
D Reeves
D Russell
R Hill
P Brennan
TOTAL
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
($)
420,000
329,833
389,000
359,750
344,000
273,500
304,000
256,000
1,457,000
1,219,083
($)
-
-
-
-
-
-
-
-
-
-
($)
42,000
32,983
38,900
35,975
34,400
27,350
30,400
25,600
41,547
-
33,741
-
29,838
-
26,368
-
145,700
131,494
121,908
-
($)
-
-
-
-
-
-
-
-
-
-
($)
473,740
($)
977,287
213,793
576,609
378,390
840,031
310,046
705,771
341,468
749,706
142,241
443,091
302,049
662,817
126,759
408,359
1,495,647
3,229,841
792,839
2,133,830
1 Remuneration values are based on the historical share price at the time of grant of the options. The majority of this remuneration
relates to options which were granted in the prior year when the underlying share price was $0.85. Options value are brought to
account over the life of the options, regardless of whether the options meet vesting criteria, and amounts are not adjusted for
subsequent changes in the share price.
Details of the remuneration of NED’s of the Company for FY23 and FY22 are as follows:
Cash Payments
Share-based Payments
NED
Year
M Connelly
K George 1
J Ciganek 2
K Coughlan 3
TOTAL
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
Fees
($)
72,000
72,000
48,000
20,000
48,000
36,000
-
36,000
168,000
164,000
Super-
annuation
($)
7,200
7,200
4,800
2,000
-
-
-
-
12,000
9,200
1 Ms. K George joined the Company on 1 February 2022.
2 Mr. J Ciganek joined the Company on 4 January 2021.
3 Mr. K Coughlan left the Company on 13 May 2022.
Rights
($)
-
-
-
-
-
-
-
-
-
-
Options
($)
162,291
79,928
75,920
34,916
56,491
41,522
-
13,987
294,701
170,353
Total
($)
241,491
159,128
128,720
56,916
104,491
77,522
-
49,987
474,701
343,553
35
Annual Report for the Financial Year ending 30 June 2023
Remuneration Report
5. Share-based Compensation Disclosure
A. Options
The following table details the terms and conditions of the grant of options to Directors and other KMP in the year
ended 30 June 2023:
Name
Number
of options
granted
Grant date
Vesting
date and
exercisable
date
Expiry date
Exercise price Fair value
per option at
grant date
D Russell
D Russell
R Hill
R Hill
P Brennan
P Brennan
713,167
713,167
630,667
630,667
557,333
557,333
11-May-23
31-Dec-24
31-Dec-26
11-May-23
31-Dec-24
31-Dec-26
11-May-23
31-Dec-24
31-Dec-26
11-May-23
31-Dec-24
31-Dec-26
11-May-23
31-Dec-24
31-Dec-26
11-May-23
31-Dec-24
31-Dec-26
Nil
Nil
Nil
Nil
Nil
Nil
$0.185
$0.103
$0.185
$0.103
$0.185
$0.103
B. KMP Options Held
The number of Options in the Company held during the financial year by KMP of the Company, including their
related parties, at 30 June 23 are as follows:
KMP
Balance at
30 June 22 Granted Converted
Lapsed
Other
changes
Balance at
30 June 23
Vested and
Exercisable Not Vested
D Reeves
2,525,937
M
Connelly
K George
J Ciganek
469,000
179,861
207,221
-
-
-
-
(1,500,000)
(227,997)
(156,334)
(56,527)
-
-
-
-
D Russell
1,142,187
1,426,333
(393,567)
(187,162)
R Hill
2,100,312
1,261,333
-
(166,744)
P Brennan
2,018,646
1,114,667
(1,350,000)
(148,595)
8,643,164
3,802,333
(3,456,428)
(730,498)
-
-
-
-
-
-
-
-
797,940
312,666
123,334
207,221
1,987,791
113,982
-
-
69,074
683,958
312,666
123,334
138,148
-
1,987,791
3,194,901
1,433,360
1,761,541
1,634,718
74,287
1,560,431
8,258,571
1,690,703
6,567,869
C. Shareholdings
The number of Shares in the Company held during the financial year by KMP of the Company, including their
related parties, at 30 June 2023 are as follows:
KMP
D Reeves
M Connelly
K George
J Ciganek
D Russell
R Hill
P Brennan
Balance at 30
June 22
20,212,258
776,786
250,000
66,667
120,000
428,752
-
22,154,463
Received During
the Year as
Compensation
Received During
the Year on
Exercise of
Options
-
-
-
-
-
-
-
-
1,500,000
156,334
56,527
-
393,567
-
1,350,000
3,156,428
Other Changes
During the Year
Balance at 30
June 23
311,096
22,023,354
-
-
-
186,433
(428,752)
(1,350,000)
(1,281,223)
933,120
306,527
66,667
700,000
-
-
24,029,668
D. Share and Performance Rights
There were no Share and Performance Rights in the Company issued to or held by KMP during the financial year.
36
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023
5. Share-based Compensation Disclosure continued…
Remuneration Report
F. Issue of Shares
No shares were issued to Directors and other KMP as
part of compensation during FY23.
G. Loans Made to KMP
No loans were made to KMP, including personally
related entities during the reporting period.
H. Share Trading Policy
The trading of shares is subject to, and conditional
upon, compliance with the company’s employee
Share Trading Policy. The ability for an executive
to deal with an option or a right is restricted by the
terms of issue and the plan rules which do not allow
dealings in any unvested security. The Share Trading
Policy specifically prohibits an executive from entering
into transactions that limit the economic risk of
participating in unvested entitlements such as equity-
based remuneration schemes. The Share Trading
Policy can be viewed on the Company’s website.
END OF REMUNERATION REPORT
E. Other Transactions with KMP
(or their related parties)
During the financial year ended 30 June 2023, the
Group incurred the following amounts to related parties
Office Rent - Wild West Enterprises Pty Ltd
The Company paid office rent to Wild West Enterprises
Pty Ltd of $75,600 in the year ended 30 June 2023,
(prior year to 30 June 2022: $81,500). Mr Reeves
(Managing Director of the Company) is a director of
Wild West Enterprises Pty Ltd. During the year Calidus
and Wild West Enterprises Pty Ltd renewed the sub-
lease agreement in respect of the office space at 12/11
Ventnor Avenue, West Perth for an initial period of two
years with a one-time option to extend for a further
one year. The rent payable by Calidus under the Office
Lease Agreement is $6,300 per month payable in
advance. The Board considers that the agreement to
be on arms’ length and commercial terms.
Environmental Consulting Services –
Rapallo Pty Ltd
During the 2023 financial year the company engaged
Rapallo Pty Ltd in preparing environmental reports and
assisting the company with environmental approvals. The
company paid a total of $35,758 for these services during
the 2023 financial year. Ms George (Non-Executive
Director of the Company) is a director of Rapallo Pty Ltd.
Refer also to "Note 26. Related Party Transactions" on
page 64.
37
Annual Report for the Financial Year ending 30 June 2023Annual Report for the Financial Year ending 30 June 2023
38
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI Auditor’s Independence Declaration
Auditor’s Independence Declaration
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF CALIDUS RESOURCES LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023, there have been:
39
a) no contraventions of the auditor independence requirements as set out in the Corporations Act2001 in
relation to the audit, and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
NEIL PACE
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 29th day of September 2023.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
Annual Report for the Financial Year ending 30 June 2023 Consolidated Financial Statements
Consolidated Statement of
Profit or Loss and Other
Comprehensive Income
for the year ended 30 June 2023
Revenue from operations
Cost of sales
Gross profit
Administration expenses
Share based payments
Environmental rehabilitation reversal/(expense)
Note
2
3
4
30 June
2023
$
80,512,129
(73,429,455)
7,082,674
30 June
2022
$
-
-
-
(4,607,265)
(4,071,042)
(2,812,711)
(2,380,222)
96,255
(80,178)
Exploration expenditure written off
12
(64,156)
(772,053)
40
Loss on financial assets
Results from operating activities
Interest revenue
Borrowing and finance costs
Profit / (loss) before tax
Income tax benefit / (expense)
Net loss for the year
Other comprehensive income, net of income tax
Other comprehensive loss for the year, net of tax
5
6
(34,112)
(193,781)
(339,315)
(7,497,276)
315,157
16,228
(6,089,733)
(1,239,462)
(6,113,892)
(8,720,509)
-
-
(6,113,892)
(8,720,509)
105,000
-
(6,008,892)
(8,720,509)
Total comprehensive loss attributable to members of the parent entity
(6,008,892)
(8,720,509)
Earnings per share:
Basic loss per share (dollars per share)
7
(0.01)
(0.02)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with
the accompanying notes
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Annual Report for the Financial Year ending 30 June 2023 Consolidated Statement of
Financial Position
as at 30 June 2023
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Financial assets
Total Current Assets
Non-Current Assets
Exploration and evaluation assets
Property, plant and equipment
Mine development
Right-of-use assets
Other non-current assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Interest bearing liabilities
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Interest bearing liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated Financial Statements
Note
30 June
2023
$
30 June
2022
$
8
9
11
12
10
14
13
15
17
16
18
17
20
19
17
20
19
21
22
21,621,721
18,136,337
1,190,689
21,570,974
1,271,717
-
1,316,766
1,362,545
-
163,056
45,700,150
20,933,655
28,310,842
25,904,406
105,148,945
1,945,582
90,237,715
187,539,009
284,120
2,129,993
938,210
1,559,323
226,111,614
217,886,531
271,811,764
238,820,186
23,847,742
20,703,473
310,837
1,373,754
680,302
1,218,753
28,000,000
36,000,000
53,532,333
58,602,527
-
13,535,289
310,837
7,091,487
53,000,000
71,000,000
66,535,289
78,402,324
120,067,622
137,004,852
151,744,142
101,815,334
173,697,934
120,572,944
8,155,830
5,343,119
(30,109,622)
(24,100,729)
151,744,142
101,815,334
41
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
Annual Report for the Financial Year ending 30 June 2023 Consolidated Financial Statements
Consolidated Statement of
Changes in Equity
for the year ended 30 June 2023
Balance at 1 July 2021
Loss for the year attributable to owners
of the parent
Other comprehensive income for the year
attributable to owners of the parent
Total comprehensive income for the year
attributable to owners of the parent
Transaction with owners, directly in equity
Note
Issued
Capital
Reserve
Accumulated
Losses
Total
$
119,310,444
$
2,962,897
$
(15,380,220)
$
106,893,121
-
-
-
-
-
-
-
(8,720,509)
(8,750,509)
-
-
(8,720,509)
(8,750,509)
-
-
-
1,262,500
2,380,222
-
Shares issued during the year
1,262,500
Share based payments
Transaction costs
Balance at 30 June 2022
20
18
-
-
2,380,222
-
120,572,944
5,343,119
(24,100,729)
101,815,334
Balance at 1 July 2022
120,572,944
5,343,119 (24,100,729)
101,815,334
42
Loss for the year attributable to owners
of the parent
Other comprehensive income for the year
attributable to owners of the parent
Total comprehensive income for the year
attributable to owners of the parent
Transaction with owners, directly in equity
-
-
-
Shares issued during the year
55,279,734
-
-
-
-
(6,113,892)
(6,113,892)
105,000
105,000
(6,008,892)
(6,008,892)
-
-
-
55,279,734
2,812,711
(2,154,744)
Share based payments
Transaction costs
Balance at 30 June 2023
20
18
-
2,812,711
(2,154,744)
-
173,697,934
8,155,830
(30,109,621)
151,744,142
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Consolidated Statement of
Cash Flows
for the year ended 30 June 2023
Cash flows from operating activities
Receipts from sales
Payments for suppliers and employees
Interest received
Consolidated Financial Statements
Note
30 June
2023
$
30 June
2022
$
80,512,129
-
(55,011,041)
(3,221,257)
315,157
16,228
Net cash provided by (used in) operating activities
8
25,816,245
(3,205,029)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for mine development
Proceeds from sale of financial assets
Purchase of plant and equipment
Investment in Pirra Lithium
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs related to issue of shares
Proceeds from borrowings
Repayment of borrowings
Interest paid
Transaction costs related to borrowings
Repayment of lease liabilities
Net cash provided by financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the year
(4,080,957)
(3,138,202)
(28,554,294)
(83,629,606)
128,943
(270,767)
-
-
(653,813)
(534,331)
(33,430,888)
(87,302,139)
44,804,861
262,500
(2,154,744)
-
-
85,000,000
(26,000,000)
(3,000,000)
(4,933,367)
-
(213,710)
(403,013)
(208,096)
(728,325)
11,100,027
81,326,079
3,485,384
(9,181,089)
18,136,337
27,317,426
43
Cash and cash equivalents at the end of the year
7
21,621,721
18,136,337
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Notes to the Consolidated
Financial Statements
for the Year Ended 30 June 2023
44
Note 1. Statement of Significant Accounting Policies
The consolidated financial statements for the year
ended 30 June 2023, comprises Calidus Resources
Limited ('Calidus' or 'the Company') and controlled
entities (collectively 'the Group'). Calidus is a listed
public company limited by shares, incorporated and
domiciled in Australia.
sources. Actual results may differ from these
estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised and in any
future period affected.
The separate financial statements of Calidus, as the
parent entity, have not been presented with this
financial report as permitted by the Corporations Act
2001 (Cth).
These financial statements are general purpose
financial statements which have been prepared in
accordance with Australian Accounting Standards
and Interpretations of the Australian Accounting
Standards Board (AASB) and International Financial
Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and
the Corporations Act 2001 (Cth). Compliance with
Australian Accounting Standards ensures that the
financial statements and notes also comply with IFRS
as issued by the IASB.
The financial statements were authorised for issue on
29 September 2023 by the directors of the Company.
A. Basis of Preparation
The financial statements comprise the consolidated
financial statements of the Group. For the purposes
of preparing the consolidated financial statements,
the Group is a for-profit entity. Material accounting
policies adopted in the preparation of these financial
statements are presented below and have been
consistently applied unless otherwise stated.
iii. Comparative Figures
Where required by AASBs comparative figures
have been adjusted to conform with changes in
presentation for the current financial year. Where
the Group retrospectively applies an accounting
policy, makes a retrospective restatement or
reclassifies items in its financial statements, an
additional (third) statement of financial position
as at the beginning of the preceding period in
addition to the minimum comparative financial
statements is presented.
B. Accounting Policies
Except where stated below, the Group has consistently
applied accounting policies to all periods presented
in the financial statements. The Group has considered
the implications of new and amended Accounting
Standards applicable for annual reporting periods
beginning after 1 July 2022 as per (d) below.
C. Principles of Consolidation
As at the reporting date, the assets and liabilities
of the Parent and all controlled entities have
been incorporated into the consolidated financial
statements as well as their results for the year then
ended.
i. Historical Cost Convention
i. Business combinations
The financial statements have been prepared
under the historical cost convention modified by
the revaluation of selected non-current assets,
and financial assets and financial liabilities for
which the fair value basis of accounting has been
applied.
ii. Use of Estimates and Judgments
The preparation of consolidated financial
statements requires management to make
judgements, estimates and assumptions that
affect the application of policies and reported
amounts of assets and liabilities, income and
expenses. These estimates and associated
assumptions are based on historical experience
and various factors that are believed to be
reasonable under the circumstances, the
results of which form the basis of making the
judgements about carrying values of assets and
liabilities that are not readily apparent from other
Business combinations are accounted for using
the acquisition method as at the acquisition date,
which is the date on which control is transferred
to the Group.
The Group measures goodwill at the acquisition
date as:
ā the fair value of the consideration transferred;
plus
ā the recognised amount of any non-controlling
interests in the acquired entity; plus
ā if the business combination is achieved in
stages, the fair value of the existing equity
interest in the acquiree;
less
ā the net recognised amount of the identifiable
assets acquired and liabilities assumed.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 When the excess is negative, a bargain purchase
gain is recognised immediately in profit or loss.
D. Application of New and Revised
Accounting Standards
Notes to the Consolidated Financial Statements
Note 1: Statement of Significant Accounting Policies continued…
The consideration transferred does not include
amounts related to settlement of pre-existing
relationships. Such amounts are generally
recognised in profit or loss.
Costs related to the acquisition, other than
those associated with the issue of debt or equity
securities, that the Group incurs in connection with
a business combination are expensed as incurred.
Any contingent consideration payable is
recognised at fair value at the acquisition date.
If the contingent consideration is classified
as equity, it is not remeasured and settlement
is accounted for within equity. Otherwise,
subsequent changes to the fair value of the
contingent consideration are recognised in profit
or loss.
ii. Subsidiaries
Subsidiaries are entities controlled by the Group.
The financial statements of subsidiaries are
included in the consolidated financial statements
from the date that control commences until the
date that control ceases.
The accounting policies of subsidiaries have been
changed when necessary to align them with the
policies adopted by the Group. Losses applicable
to the non-controlling interests in a subsidiary are
allocated to the non-controlling interests even if
doing so causes the non-controlling interests to
have a deficit balance.
A list of controlled entities is contained in "Note
21. Issued Capital" on page 59.
iii. Loss of control
Upon the loss of control, the Group derecognises
the assets and liabilities of the subsidiary,
any non-controlling interests and the other
components of equity related to the subsidiary.
Any surplus or deficit arising on the loss of
control is recognised in profit or loss. If the Group
retains any interest in the previous subsidiary,
then such interest is measured at fair value at the
date control is lost. Subsequently it is accounted
for as an equity-accounted investee or as an
available-for-sale financial asset depending on
the level of influence retained.
iv. Transactions eliminated on consolidation
All intra-group balances and transactions, and
any income and expenses arising from intra-
group transactions, are eliminated in full in
preparing the consolidated financial statements.
For the year ended 30 June 2023, the Group has
reviewed and adopted all the new and revised
Standards and Interpretations issued by the AASB that
are relevant to its operations and effective for annual
reporting periods beginning on or before 1 July 2022.
These standards did not materially affect the Group’s
financial statements for the year ended 30 June 2023.
Any new, revised or amending Accounting Standards
or Interpretations that are not yet mandatory have not
been early adopted.
There are no other standards that are not yet effective
and that would be expected to have a material impact
on the entity in the current or future reporting period
and on foreseeable future transactions.
E. Critical Accounting Estimates
and Judgments
Management discusses with the Board the
development, selection and disclosure of the Group's
critical accounting policies and estimates and the
application of these policies and estimates. The
estimates and judgements that have a significant
risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year are discussed below.
i. Exploration and evaluation expenditure
Exploration and evaluation costs are carried
forward where right of tenure of the area of
interest is current. Tenement acquisition costs are
initially capitalised. Refer to the accounting policy
stated in "Note 14. Exploration and Evaluation
Assets" on page 54. The carrying value of
capitalised expenditure at reporting date is
$28,310,842 (30 June 2022: $25,904,406).
45
The ultimate recoupment of the value of
the exploration and evaluation assets and
mine properties is dependent on successful
development and commercial exploitation or
alternatively, sale, of the underlying mineral
exploration properties or where activities in
the area have not yet reached a stage, which
permits reasonable assessment of the existence
of economically recoverable reserves. The
Group undertakes at least on an annual basis
a comprehensive review for indicators of
impairment of these assets. There is significant
estimation and judgement in determining the
inputs and assumptions used in determining the
recoverable amounts.
The key areas of estimation and judgement that
are considered in this review include:
ā Recent drilling results and reserves and
resource estimates
ā Environmental issues that may impact the
underlying tenements
ā The estimated market value of assets at the
review date
ā Independent valuations of underlying assets
that may be available
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 1: Statement of Significant Accounting Policies continued…
ā Fundamental economic factors such as
iii. Impairment of assets
gold prices, exchange rates and current and
anticipated operating costs in the industry
ā The Group’s market capitalisation compared
to its net assets
Information used in the review process
is rigorously tested to externally available
information as appropriate.
Accumulated costs in relation to an abandoned
area are written off in full against profit in the
year in which the decision to abandon the area is
made.
ii. Mine properties under development
Mine properties represent the acquisition cost
and/or accumulated exploration, evaluation and
development expenditure respect of areas of
interest in which mining has commenced.
The Group assesses the stage of each mine under
development to determine when a mine moves
into the production phase, this being when
the mine is substantially completed and ready
for its intended use. This point is commonly
referred to as the attainment of commercial
production. On 1 January 2023, Calidus attained
commercial production, capitalised mine
properties under development are transferred
to property, plant and equipment and mine
properties and revenues and expenditures of an
operating nature ceased to be capitalised and
commenced being recognised in profit and loss
or the cost of inventory. It is also the point at
which the depreciation and amortisation of the
development assets commenced.
The criteria used to assess the start date of
commercial production was determined based
on the unique nature of the mine development
project, such as the complexity of the project
and its location. The Group considered various
relevant criteria to assess when the production
phase is considered to have commenced. On
1 January 2023, the Warrawoona Gold Project
commenced production.
The group uses the unit-of-production basis
when depreciating / amortising life of-mine
specific assets which results in a depreciation
/ amortisation charge proportionate to the
depletion of the anticipated remaining life-of-
mine production. Each item’s economic life,
which is assessed annually, has due regard for
both its physical life limitations and to present
assessments of the available resource of the mine
property at which it is located.
46
The carrying amounts of assets in the
development or production phase are reviewed
at each reporting date to determine whether
there is any indication of impairment. If any such
indication exists, then the asset’s recoverable
amount is estimated.
The recoverable amount of an asset or cash-
generating unit is the greater of its value in
use and its fair value less costs of disposal. In
assessing this, the estimated future cash flows are
discounted to their present value using a discount
rate that reflects current market assessments of
the time value of money and the risks specific
to the asset. For the purpose of impairment
testing, assets that cannot be tested individually
are grouped together into the smallest group
of assets that generates cash inflows from
continuing use that are largely independent of
the cash inflows of other assets or groups of
assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit
exceeds its recoverable amount. Impairment
losses are recognised in the statement of profit
or loss and other comprehensive income.
Impairment losses recognised in respect of cash-
generating units are allocated first to reduce the
carrying amount of any goodwill and then to
reduce the carrying amount of the other assets in
the unit (group of units) on a pro-rata basis.
Impairment losses recognised in prior periods
are assessed at each reporting date for any
indications that the loss has decreased or no
longer exists. An impairment loss is reversed
if there has been a change in the estimates
used to determine the recoverable amount. An
impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed
the carrying amount that would have been
determined, net of depreciation or amortisation,
if no impairment loss had been recognised. An
impairment loss in respect of goodwill is not
reversed.
iv. Taxation
Balances disclosed in the financial statements
and the notes thereto, related to taxation, are
based on the best estimates of directors. These
estimates take into account both the financial
performance and position of the company
as they pertain to current income taxation
legislation, and the directors understanding
thereof. No adjustment has been made for
pending or future taxation legislation. The
current income tax position represents that
directors' best estimate, pending an assessment
by tax authorities in relevant jurisdictions. The
Directors have considered it prudent not to bring
to account the deferred tax asset of income tax
losses until it is probable of deriving assessable
income of a nature and amount to enable such
benefit to be realised. Refer to "Note 6. Income
Tax" on page 49.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 v. Share based payment transactions
viii. Going Concern Basis of Accounting
Notes to the Consolidated Financial Statements
Note 1: Statement of Significant Accounting Policies continued…
The group 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 an internal valuation using a
Black-Sholes model and a hybrid employee share
option pricing model, applying the assumptions
detailed in "Note 23" on page 60. The fair
value of performance rights is determined by
the share price at the date of valuation and
consideration of the probability of the vesting
condition being met.
vi. Rehabilitation provision
The Group assesses site rehabilitation liabilities
on an annual basis. The provision recognised is
based on an assessment of the estimated cost of
closure and reclamation of the areas discounted
to present value. Significant estimation is required
in determining the provision for site rehabilitation.
Factors such as future development/exploration
activity, changes in the costs of goods and
services required to complete restoration
activity and changes to the legal and regulatory
framework can all affect the timing and ultimate
cost to rehabilitate sites where mining and/or
exploration activities have previously taken place.
vii. Hedging
In conjunction with the financing facility
negotiated with Macquarie Bank Limited,
the Company has entered into forward gold
contracts totaling 156,799 oz at an average
delivery price of A$2,392 per ounce spread over
the term of the facility from September 2022 to
September 2025 and representing approximately
53% of planned production of the Warrawoona
Gold Project. These forward sales contracts are
not treated as derivatives and fair valued in the
financial statements as they fall within the own
use exemption of AASB 9 Financial Instruments.
Should the Company fail to settle these contracts
by physical delivery, then it may be required
to account for the fair value of a portion, or
potentially all of, the existing contracts in the
financial statements.
The group has incurred a net loss of $6,008,892
for the year ended 30 June 2023, had positive
cashflow from operating activities and net
outflow when combining with investing activities.
The Company has assessed its ability to continue
as a going concern, considering all currently
available information, for a period of at least 12
months from the date of issue of this interim
financial report. This assessment included
preparation of cash flow forecasts for the next
12 months which indicate that additional funding
or renegotiation of debt payment profiles will be
required to meet its obligations as they fall due.
The Company’s financial statements have been
prepared on a going concern basis, which
contemplates the continuity of normal business
activities, including the realisation of assets and
settlement of liabilities in the normal course of
business, for the following reasons:
ā The Group has announced the declaration
of commercial production as well as forward
guidance of future expected results and
expects to generated positive cashflows from
mining activities going forward
ā The Group has commenced negotiations with
its financers to amend debt repayment profiles
to align more closely with the future cash
generated from its projects
Should the Group not be able to continue as a
going concern it may be required to realise its
assets and extinguish its liabilities other than in the
ordinary course of business and at amounts that
differ from those stated in the financial statements.
The financial statements do not include any
adjustments relating to the recoverability and
classification of recorded asset amounts or
liabilities that might be necessary should the
Company not continue as a going concern.
47
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 2. Revenue from Operations
Gold sales
Silver sales
Total
2023
$
80,213,724
298,405
80,512,129
2022
$
-
-
-
A. Revenue
Revenues represent revenue generated from external
customers.
Revenue from the sale of goods is measured at the fair
value of the consideration received or receivable, net
of returns and allowances. Revenue is recognised in
the income statement when the significant risks and
rewards of ownership have been transferred to the
buyer. No revenue is recognised if there are significant
uncertainties regarding recovery of the consideration
due or there is a risk of return of goods or there is
continuing management involvement with the goods.
Pre-commercial production gold and silver sales
revenue to 31 December 2022 was capitalised
to mine properties under development. On the
commencement of commercial production from
1 January 2023, the revenue is recognised in the
income statement.
B. Interest Income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Group and the amount of revenue can be
reliably measured. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.
Note 3. Cost of Sales
48
Cash costs of production
Royalties
Depreciation 1
Amortisation
Movement in inventories
Total
2023
$
68,771,950
2,262,345
8,036,016
5,649,462
(11,290,318)
73,429,455
2022
$
-
-
-
-
-
-
1 Includes depreciation on Property, Plant and Equipment right of use and restoration assets relating to Warrawoona operations
Note 4. Administration Expenses
Corporate and administrative expenses
Share registry and
listing fees
Investor and public relations
Depreciation expense 1
Employee benefits expenses
Other expenses
1 Depreciation of corporate property, plant and equipment
2023
$
1,087,020
233,313
110,522
399,791
2022
$
966,422
139,159
188,209
730,817
2,659,446
1,944,108
117,173
102,327
4,607,265
4,071,042
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 5. Borrowing and Finance Costs
Interest expense 1
Amortisation of capitalised borrowing costs
Accretion of rehabilitation provision
Interest expense on lease liabilities
1 Interest expense prior to commercial production is capitalised in mine development
Note 6.
Income Tax
Note
2023
13
17
$
4,461,607
1,231,423
346,580
50,123
2022
$
11,160
1,130,322
-
97,980
6,089,733
1,239,462
A. Income tax expense / (benefit)
Current tax
Deferred tax
Relating to origination and reversal of temporary differences
Deferred tax expense / (benefit) not recognised
Income tax expense / (benefit) reported in income statement
2023
$
2022
$
(42,260,330)
(15,931,078)
42,260,330
15,931,078
(3,948,535)
3,948,535
-
(724,132)
724,132
-
B. Reconciliation of income tax expense / (benefit) to prima facie tax payable
The prima facie tax payable / (benefit) on loss from ordinary activities before income tax is reconciled to the
income tax expense as follows:
Accounting profit / (loss) before tax from continuing operations
(6,008,892)
(8,720,509)
Prima facie tax on operating loss at 25% (2022: 25%)
(1,802,668)
(2,180,127)
49
Add / (subtract) the tax effect of:
Non-deductible expenses
Deferred tax assets / (liabilities) not brought to account
Income tax expense / (benefit) attributable to operating loss
C. Deferred tax assets
Tax losses
Other temporary differences
Set-off deferred tax liabilities
Net deferred tax assets
Less deferred tax assets not recognised
Net tax assets
D. Tax losses and deductible temporary differences
Unused tax losses and deductible temporary differences for which no
deferred tax asset has been recognised:
852,292
950,376
-
623,780
1,556,347
-
65,554,879
28,211,487
5,486,683
71,041,562
2,986,624
31,198,111
(58,210,685)
(22,315,770)
12,830,877
8,882,341
(12,830,877)
(8,882,341)
-
-
215,391,591
111,400,378
215,391,591
111,400,378
Potential deferred tax assets attributable to tax losses
have not been brought to account at 30 June 2023
because the directors do not believe it is appropriate
to regard realisation of the deferred tax assets as
probable at this point in time. These benefits will only
be obtained if:
(a) the company derives future assessable income of
a nature and of an amount sufficient to enable the
benefits to be utilised;
(b) the company continues to comply with the
conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely
affect the company in utilising the benefits.
Annual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 6: Income Tax continued…
The corporate tax rate for eligible companies was 25%
for the financial year ended 30 June 2023 providing
certain turnover thresholds and other criteria are met.
Deferred tax assets and liabilities are required to be
measured at the tax rate that is expected to apply in
the future income year when the asset is realised or
the liability is settled. The directors have determined
that the deferred tax balances be measured at the tax
rates stated.
accounting profit nor taxable profit or loss; or
ā when the deductible temporary difference is
associated with investments in subsidiaries,
associates or interests in joint ventures, in which
case a deferred tax asset is only recognised to
the extent that it is probable that the temporary
difference will reverse in the foreseeable future and
taxable profit will be available against which the
temporary difference can be utilised.
Current tax assets and liabilities for the current and
prior period are measured at the amount expected to
be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the
amount are those that are enacted or substantively
enacted by the balance date.
Deferred income tax is provided on all temporary
differences at the statement of financial position date
between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences
and the carry-forward of unused tax credits and
unused tax losses can be utilised, except:
ā when the deferred income tax asset relating to
the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
The carrying amount of deferred income tax assets
is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed
at each balance date and are recognised to the extent
that it has become probable that future taxable profit will
allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in
equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are
offset only if a legally enforceable right exists to set
off current tax assets against current tax liabilities and
the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
Note 7. Earnings Per Share (EPS)
(a) Reconciliation of earnings to profit or loss
Loss for the year
Loss used in the calculation of basic and diluted EPS
2023
$
2022
$
(6,008,892)
(8,720,509)
(6,008,892)
(8,720,509)
(b) Weighted average number of ordinary shares outstanding during the year
607,610,162
400,899,115
used in calculation of basic EPS
(c) Earnings per share
Basic EPS (dollars per share)
(0.01)
(0.02)
(d) At the end of the 2023 financial year, the Group has 15,248,000 unissued shares under options (2022:
13,265,762). The Group does not report diluted earnings per share on annual losses generated by the Group.
During the 2023 financial year the Group's unissued shares under option were anti-dilutive.
Basic profit/(loss) per share is calculated as net profit
or loss attributable to members of the parent, adjusted
to exclude any costs of servicing equity (other than
dividends) and preference share dividends, divided
by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted profit/(loss) per share is calculated as net
profit or loss attributable to members of the parent,
adjusted for:
ā costs of servicing equity (other than dividends) and
preference share dividends;
ā the after tax effect of dividends and interest
associated with the dilutive potential ordinary shares
that have been recognised as expenses; and
ā other non-discretionary changes in revenues or
expenses during the period that would result from
the dilution of potential ordinary shares; divided by
the weighted average number of ordinary shares
and dilutive potential ordinary shares, adjusted for
any bonus element.
50
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Note 8. Cash and Cash Equivalents
A. Current
Cash at bank
Notes to the Consolidated Financial Statements
2023
$
21,621,721
2022
$
18,136,337
21,621,721
18,136,337
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in
"Note 29. Financial Risk Management" on page 65.
B. Reconciliation of Cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the
statement of financial position as follows:
Cash and cash equivalents
C. Cash Flow Information
2023
$
21,621,721
2022
$
18,136,337
21,621,721
18,136,337
i. Reconciliation of cash flow from operations to (loss)/profit after income tax
Loss after income tax
Non-cash flows in result:
ā Depreciation and amortisation
ā Share-based payments
ā Exploration expenditure written off
ā Environmental rehabilitation reversal/(expense)
ā Loss on financial assets
Changes in operating assets and liabilities:
ā Increase in receivables
ā Decrease/(increase) in other assets
ā Increase in trade and other payables
ā Increase/(decrease) in provisions
Note
2023
$
(6,008,892)
2022
$
(8,720,509)
51
14,431,850
730,817
23
2,812,711
2,380,222
64,156
(96,255)
34,112
(459,367)
231,209
14,651,719
155,101
772,053
80,178
193,781
(114,578)
(4,716)
1,451,273
26,450
Cash flow provided by/(used in) operating activities
25,816,245
(3,205,029)
Note 9. Trade and Other Receivables
A. Current
GST receivable
Other receivables
2023
$
852,760
337,929
1,190,689
2022
$
1,244,332
27,385
1,271,717
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 9: Trade and Other Receivables continued…
B. Expected Credit Losses
The Group applies the AASB 9 simplified model of
recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant
financing component.
Where applicable, in measuring the expected credit
losses, the trade receivables are assessed on a
collective basis as they possess shared credit risk
characteristics. They are grouped based on the days
past due and also according to the geographical
location of customers.
The expected loss rates are based on the payment
profile for past sales (where applicable) as well as
the corresponding historical credit losses during that
period. The historical rates are adjusted to reflect
current and forwarding looking macroeconomic
factors affecting the customer’s ability to settle the
amount outstanding.
Trade receivables are written off when there is no
reasonable expectation of recovery. Failure to make
payments within 180 days from the invoice date
and failure to engage with the Group on alternative
payment arrangement amongst others is considered
indicators of no reasonable expectation of recovery.
Note 10. Financial Assets
Shares held in listed investments
2023
$
-
-
2022
$
163,056
163,056
Note 11. Inventories
52
Warehouse inventory
Ore stockpiles
Gold in circuit
Bullion on hand
2023
$
3,956,856
9,939,768
3,970,602
3,703,748
21,570,974
2022
$
-
-
-
-
-
Gold bullion, gold in circuit and ore stockpiles are
physically measured or estimated and valued at lower
of cost and net realisable value. The cost comprises of
direct materials, labour and transportation expenditure
associated in bringing in such inventories to their
existing location. Together with an appropriate
portion of fixed and variable overhead costs, including
depreciation and amortisation, incurred in converting
ore into gold bullion.
Net realisable value is the estimated selling price in
the ordinary course of business less estimated cost
of completion and the estimated cost necessary to
perform the sale.
Warehouse inventory items are valued at the lower
of cost and net realisable value. Any provision for
obsolescence is determined by reference to specific
stock items determined.
Note 12. Other Current Assets
Prepayments
2023
$
1,316,766
1,316,766
2022
$
1,362,545
1,362,545
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Note 13. Property, Plant and Equipment
Notes to the Consolidated Financial Statements
A. Non-current
Plant and equipment
Accumulated depreciation
Buildings
Accumulated depreciation
Motor vehicles
Accumulated depreciation
Furniture and fittings
Accumulated depreciation
Computer equipment and software
Accumulated depreciation
Capital works in progress
Total property, plant, and equipment
B. Movements in Carrying Amounts
2023
$
94,140,881
(5,624,502)
88,516,379
15,031,278
(1,073,985)
13,957,293
1,421,476
(266,423)
1,155,053
1,002,602
(100,260)
902,342
542,463
(215,270)
327,193
290,685
2022
$
1,089,128
(91,182)
997,946
866,621
-
866,621
132,786
(110,658)
22,128
-
-
-
171,852
(112,965)
58,887
-
105,148,945
1,945,582
Computer
equipment
and
software
Motor
vehicles
Plant and
equipment Buildings
Furniture
and fittings
Capital
WIP
$
$
$
$
$
$
Total
$
53
Year Ended 30 June 2023
Carrying amount at
the beginning of year
22,128
58,887
997,946
866,621
Additions
42,718
11,662
873,343
-
-
-
-
1,945,582
290,685
1,218,408
Transfer from mine
properties under
development
1,245,972
358,949
92,178,410 14,164,657
1,002,602
- 108,950,590
Depreciation expense
(155,765)
(102,305)
(5,533,320)
(1,073,985)
(100,260)
-
(6,965,635)
1,155,053
327,193
88,516,379 13,957,293
902,342
290,685
105,148,945
Carrying amount at 30
June 2023
Year Ended 30 June 2022
Carrying amount at
the beginning of year
41,178
103,587
1,012,936
866,621
Additions
-
-
-
Depreciation expense
(19,051)
(44,699)
(14,990)
-
-
Carrying amount at
30 June 2022
22,127
58,888
997,946
866,621
-
-
-
-
-
-
-
-
2,024,322
-
(78,740)
1,945,582
Annual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 13: Property, Plant, and Equipment continued…
Property, plant and equipment is stated at cost less
accumulated depreciation and any impairment
losses. The cost of the asset includes expenditure
that is directly attributable to the acquisition of the
asset. The cost of self-constructed assets includes
the cost of materials and direct labour, any other
costs directly attributable to bringing the asset to a
working condition for its intended use, and the costs
of dismantling and removing the items and restoring
the site on which they are located, and appropriate
proportion of production overheads.
Where parts of an item of property, plant and
equipment have different useful lives, they are
accounted for as separate items of property, plant and
equipment.
An item of plant and equipment is de-recognised upon
disposal or when no further future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or
loss in the year the asset is de-recognised.
The carrying amount of plant and equipment is
reviewed annually by directors to ensure it is not
in excess of the recoverable amount from these
assets. The recoverable amount is assessed on the
basis of the expected net cash flows that will be
received from the assets employment and subsequent
disposal. The expected net cash flows are discounted
to their present values in determining recoverable
amounts. For an asset that does not generate largely
independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the
asset belongs, unless the asset’s value in use can be
estimated to be close to its fair value. An impairment
exists when the carrying value of an asset or cash-
generating units exceeds its estimated recoverable
amount. The asset or cash-generating unit is then
written down to its recoverable amount with the
impairment loss recognised in the statement of profit
or loss and other comprehensive income.
Depreciation rates and methods are reviewed annually
for appropriateness. The depreciation rates used for
the current and comparative year are:
Motor vehicles
Computer equipment
and software
2023
%
25-50
33
2022
%
25-50
33
Plant and equipment
UOP, 25-50
25-50
Buildings
Furniture and fittings
14
20
14
20
The group applies units of production method for
Warrawoona amortisation of mine properties, and
depreciation of the majority of plant and equipment.
This results in an expense charge proportional to the
depletion of the anticipated remaining life of mine
production. These calculations require the use of
estimates and assumptions in relation to reserves and
resources, metallurgy, and complexity of future capital
development.
The assets’ residual values, useful lives and expense
charge methods are reviewed, and adjusted if
appropriate, at each financial year end.
Note 14. Exploration and Evaluation Assets
54
A. Non-current
Exploration expenditure capitalised:
Exploration and evaluation
Net carrying value
B. Movements in Carrying Amounts
Balance at the beginning of year
Expenditure during the year
Transfer to mine development
Exploration expenditure write off
Carrying amount at the end of year
2023
$
2022
$
28,310,842
25,904,406
28,310,842
25,904,406
25,904,406
23,486,369
2,891,724
(421,132)
(64,156)
3,450,553
(260,463)
(772,053)
28,310,842
25,904,406
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 The recoupment of costs carried forward in relation
to areas of interest in the exploration and evaluation
phases are dependent on the successful development
and commercial exploitation or sale of the respective
areas.
Exploration and evaluation expenditures in relation to
each separate area of interest are recognised as an
exploration and evaluation asset in the year in which
they are incurred where the following conditions are
satisfied:
ā the rights to tenure of the area of interest are
current; and
ā at least one of the following conditions is also met:
i the exploration and evaluation expenditures are
expected to be recouped through successful
development and exploitation of the area of
interest, or alternatively, by its sale; or
ii exploration and evaluation activities in the area
of interest have not at the balance date reached
a stage which permits a reasonable assessment
of the existence or otherwise of economically
recoverable reserves, and active and significant
operations in, or in relation to, the area of interest
are continuing.
Notes to the Consolidated Financial Statements
Note 14: Exploration and Evaluation Assets continued…
Exploration and evaluation assets are assessed for
impairment when facts and circumstances suggest
that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount.
The recoverable amount of the exploration and
evaluation asset (for the cash generating unit(s) to
which it has been allocated being no larger than the
relevant area of interest) is estimated to determine
the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not
exceed the carrying amount that would have been
determined had no impairment loss been recognised
for the asset in previous years.
Where a decision has been made to proceed with
development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested
for impairment and the balance is then reclassified to
development assets.
The Group’s exploration properties may be subjected
to claim(s) under Native Title (or jurisdictional
equivalent), or contain sacred sites, or sites of
significance to the indigenous people of Australia.
As a result, exploration properties or areas within the
tenement may be subject to exploration restrictions,
mining restrictions and/or claims for compensation.
At this time, it is not possible to quantify whether such
claims exist, or the quantum to such claims.
Note 15. Mine Development
55
A. Non-current
Mine development
Amortisation
Restoration asset
Amortisation
Deferred waste development
Amortisation
Borrowing costs
Amortisation
Mine properties under development
Total
2022
$
2023
$
66,940,118
(4,022,402)
62,917,716
12,548,708
6,402,324
(816,083)
-
-
-
-
11,732,625
6,402,324
14,645,049
(1,627,060)
13,017,989
-
-
-
5,012,431
4,798,721
(2,443,046)
(1,211,623)
2,569,385
3,587,098
-
177,549,587
90,237,715
187,539,009
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 15: Mine Development continued…
B. Movements in Carrying Amounts
Mine
development
Restoration
asset
Deferred
waste
development
Borrowing
costs
Mine
properties
under
development
$
$
$
$
$
Total
$
Year Ended 30 June 2023
Carrying amount at the
beginning of year
-
6,402,324
-
3,587,098
177,549,587
187,539,009
Transfers between classes 1
62,714,496
-
-
-
11,634,137
-
-
-
(196,332,701)
(121,984,068)
(59,414,875)
(59,414,875)
3,978,941
6,146,385
3,010,912
213,710
78,023,538
91,373,486
Transfers from exploration
246,681
-
-
-
174,451
421,132
Amortisation
(4,022,402)
(816,084)
(1,627,060)
(1,231,423)
Gold sales 2
Additions
62,917,716
11,732,625
13,017,989
2,569,385
-
-
(7,696,969)
90,237,715
Carrying amount at
30 June 2023
Year Ended 30 June 2022
Carrying amount at the
beginning of year
Gold sales
Additions
Transfers from exploration
Amortisation
Carrying amount at
30 June 2022
-
-
-
-
-
-
1,543,692
-
4,858,632
-
-
6,402,324
-
-
-
-
-
-
4,563,890
85,656,623
91,764,206
-
(22,067,268)
(22,067,268)
153,530 113,699,769
118,711,930
-
260,463
260,463
(1,130,322)
-
(1,130,322)
3,587,098
177,549,587
187,539,009
56
1 Upon declaration of commercial production, mine properties under development was reclassified to stockpiles, deferred waste
development, property plant and equipment and mine development.
2 Gold sales are capitalised prior to the declaration of commercial production.
Mine properties under development represents the
costs incurred in preparing mines for production
and includes prior exploration and evaluation costs,
plant and equipment under construction, capitalised
borrowing costs, operating costs incurred and
operating revenues before commercial production
commences, and mine closure and rehabilitation assets
recognised. These costs and revenues are capitalised to
the extent they are expected to be recouped through
successful exploitation of the related mining leases.
Once commercial production commenced, these costs
have transferred to property, plant and equipment and
mine properties, as relevant, and are depreciated and
amortised using the units-of-production method based
on the estimated economically recoverable reserves to
which they relate or are written off if the mine property
is abandoned.
Capitalised borrowing costs represent interest and
commitment fees on drawn and undrawn amounts of
debt facilities, as well as all transaction costs directly
attributable to establishing a debt facility. Interest and
commitment fees are capitalised to qualifying assets,
in this case Mine properties under development,
until the point in time that commercial production
was declared, following the commencement of
commercial production, interest and commitment fees
have be expensed as incurred. Capitalised interest and
commitment fees are amortised using the units-of-
production method. Capitalised transaction costs
directly attributable to establishing a debt facility are
amortised on a straight-line basis over the expected
life of the debt facility.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Note 16. Other Non-current Assets
Notes to the Consolidated Financial Statements
Non-current deposits
Investment in Pirra
Lithium Pty Ltd
2023
$
24,993
2022
$
24,993
2,105,000
1,534,330
2,129,993
1,559,323
Note 17. Leases
A. Right-of-use assets
Balance at the
beginning of the year
2023
$
2022
$
938,210
1,575,524
Additions
-
14,762
Depreciation charge
(654,090)
(652,076)
Net carrying value
284,120
938,210
B. Lease liabilities
Current
Lease liabilities
Total current lease
liabilities
Non-current
Lease liabilities
Total non-current lease
liabilities
310,837
310,837
680,302
680,302
-
-
310,837
310,837
Total lease liabilities
310,837
991,139
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 an estimate of costs expected to be incurred for
dismantling and removing the underlying 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
The investment in Pirra is a jointly controlled entity,
50% owned by Calidus, and 50% owned by Haoma at
30 June 2023. The carrying value is an approximation
of the true fair value of Pirra Lithium Pty Ltd as it is a
private company and ownership isn’t publicly traded.
shorter. Where the Group 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 Group 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.
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 Group’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.
57
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 18. Trade and Other Payables
2023
$
2022
$
Current
Unsecured
Trade payables
14,740,912
15,830,082
Accruals
6,682,936
1,292,840
Accrued finance costs
794,872
1,596,294
Other payables
1,200,893
1,083,426
Employment related
payables
428,129
900,831
23,847,742
20,703,473
Trade payables, accruals and employment related
payables are non-interest bearing and are usually
settled within 30 days. Accrued finance costs and
other payables are settled over the next 12 months
with varying due dates.
Trade and other payables are carried at amortised
cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial
year that are unpaid and arise when the Group
becomes obliged to make future payments in respect
of the purchase of these goods and services.
Trade and other payables and provisions are presented
as current liabilities unless payment is not due within
12 months.
Note 19. Interest Bearing Liabilities
2023
$
2022
$
Current
Secured
Bank loans
28,000,000
36,000,000
28,000,000
36,000,000
Non-Current
Secured
Bank loans
58
53,000,000
71,000,000
53,000,000
71,000,000
Interest bearing liabilities relate to the project
loan facility denominated in AUD with Macquarie
Bank Limited, utilised for the development of the
Warrawoona Gold Project. The facilities are secured
against the assets of Calidus Resources Limited and
its subsidiaries. At 30 June 2023, facilities comprise a
Senior Secured Loan of $46 million and a Mezzanine
Facility of $35 million following repayments of $26
million during FY23. Interest is charged at commercial
rates. The facilities are repaid via scheduled
repayments currently forecast to cease in June 2025.
Estimates of future cash flows used for classification of
the debt facility between current and non-current may
differ from the actual outcomes in the next 12 months.
Note 20. Provisions
2023
$
2022
$
253,426
1,120,328
544,135
674,618
1,373,754
1,218,753
Current
Payroll tax
Annual leave
Non-current
Long service leave
80,668
33,576
Rehabilitation
13,454,621
7,057,911
13,535,289
7,091,487
Provision for rehabilitation
Balance at the
beginning of the period
Provisions made
during the year
7,057,911
2,119,102
6,050,130
4,938,809
Accretion
346,580
-
Balance at the end of
the period
13,454,621
7,057,911
Provisions are recognised when the Group has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions
are not recognised for future operating losses. The
expense relating to any provision is presented in the
statement of profit or loss and other comprehensive
income net of any reimbursement. Provisions are
measured at the present value or management’s best
estimate of the expenditure required to settle the
present obligation at the end of the reporting year.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects the risks specific to the liability.
The Group assesses site rehabilitation liabilities on
an annual basis. The provision recognised is based
on an assessment of the estimated cost of closure
and reclamation of the areas discounted to present
value. Significant estimation is required in determining
the provision for site rehabilitation. Factors such as
future development/exploration activity, changes in
the costs of goods and services required to complete
restoration activity and changes to the legal and
regulatory framework can all affect the timing and
ultimate cost to rehabilitate sites where mining and/or
exploration activities have previously taken place.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 21. Issued Capital
Fully paid ordinary shares at no par value
A. Ordinary Shares
At the beginning of the year
Shares issued during the year:
Receipt for employee shares previously
issued under holding lock
Share payment for prior issue
Exercise of options
Shares issued to Haoma to compensate for
prior exploration to form in Pirra Lithium Pty Ltd
2023
2022
2023
2022
No.
607,610,162
No.
403,364,658
$
120,572,944
$
120,572,944
403,364,658
399,928,347
120,572,944
119,310,444
-
-
-
-
6,395,935
1,975,049
-
-
-
112,500
150,000
-
-
1,461,262
-
1,000,000
Placement
Placement
Share purchase plan
29,850,747
109,756,478
8,361,994
Consideration Shares issued to Macmahon
49,880,350
Transaction costs relating to share issues
-
-
-
-
-
-
20,000,000
23,048,860
1,756,000
10,474,873
(2,154,744)
-
-
-
-
-
At reporting date
607,610,162
403,364,658
173,697,934
120,572,944
Terms of Ordinary Shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held and in proportion to the amount paid up on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of the
share when a poll is called, otherwise each shareholder has one vote on a show of hands.
59
B. Options
At the beginning of the year
Options exercised
Options expired/cancelled
Options issued/expensed
At reporting date
2023
No.
13,265,762
2022
No.
7,770,950
(6,395,935)
(1,404,317)
2023
$
5,343,119
-
2022
$
2,962,897
-
(1,895,640)
(67,000)
(221,954)
(23,181)
10,273,817
6,966,129
15,248,004
13,265,762
3,034,665
8,155,830
2,403,403
5,343,119
C. Capital Management
The Directors' objectives when managing capital are
to ensure that the Group can maintain a capital base
to maintain investor, creditor and market confidence
and to sustain future development of the business. The
Board of Directors monitors the availability of liquid
funds in order to meet its short-term commitments.
The focus of the Group's capital risk management
is the current working capital position against the
requirements of the Group in respect to its exploration,
development, operations, and corporate overheads.
The Group's strategy is to ensure appropriate
liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate
capital raisings and/or debt facilities as required.
The working capital position of the Group were as follows:
Cash and cash equivalents
Trade and other receivables
Inventories
Trade and other payables
Working capital position
7
8
11
18
Note
2023
$
21,621,721
1,096,617
21,570,974
2022
$
18,136,337
1,271,717
-
(23,465,008)
(20,703,473)
(746,670)
(1,295,419)
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 22. Reserves
Options reserve
A. Options Reserve
Balance at the beginning of the financial year
Share based payments expense
Balance at the end of the financial year
Note
2023
21b
23
$
8,155,830
8,155,830
5,343,119
2,812,711
8,155,830
2022
$
5,343,119
5,343,119
2,962,897
2,380,222
5,343,119
The option reserve records items recognised as expenses on the value of directors and employee equity issues.
At 30 June 2023, the following options are outstanding:
Grant Date
Date of Expiry
Exercise Price
Number under Option
25-Nov-19
4-Jan-21
14-Mar-22
14-Mar-22
26-May-22
26-May-22
26-May-22
6-Jun-23
6-Jun-23
30-Jan-25
4-Jan-25
31-Dec-23
31-Dec-24
31-Dec-23
31-Dec-24
31-Dec-25
31-Dec-25
31-Dec-26
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,350,000
133,333
180,295
2,617,403
2,407
904,365
287,074
122,981
9,380,446
14,978,304
60
Note 23. Share-based Payments
Note
2023
$
2022
$
Options:
Share based payments
– Key Management
Personnel
Share based payments
– other employees
1,790,349
963,192
1,022,362
1,417,030
22a
2,812,711
2,380,222
Equity-settled Compensation
The fair value of options granted is recognised as an
employee expense with a corresponding increase in
equity. The fair value is measured at grant date and
spread over the period during which the employees
become unconditionally entitled to the options. The
fair value of the options granted is measured using the
Black-Scholes pricing model, taking into account the
terms and conditions upon which the options were
granted. The amount recognised is adjusted to reflect
the actual number of share options that vest except
where forfeiture is only due to market conditions not
being met.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 A. Share-based payment arrangements in effect during the year
Employee Securities Incentive Plan
The table below details the terms and conditions and the assumptions used in estimating fair value for options
granted in the year.
Notes to the Consolidated Financial Statements
Note 23: Share-based Payments continued…
Vesting Condition
Valuation date
Number of options
Underlying security spot price at grant date
Exercise price
Commencement of performance period
End of performance period
Performance period (years)
Remaining performance period (years)
Expiry date
Life of the options (years)
Effective life of the options (years)
Volatility
Risk-free rate
Dividend yield
Valuation per option
Total valuation
Share price
performance to
31 December
2024
26-May-23
4,690,222
$0.19
Nil
1-Jan-23
31-Dec-24
2
1.6
Service to 31
December 2024
Service to 31
December 2023
26-May-23
4,690,222
$0.19
Nil
1-Jan-23
31-Dec-24
2
1.6
26-May-23
122,980
$0.19
Nil
1-Jan-23
31-Dec-23
1
0.6
31-Dec-26
31-Dec-26
31-Dec-25
3.6
1.6
70%
3.57%
Nil
$0.10
3.6
1.6
70%
3.57%
Nil
$0.19
2.6
0.6
70%
3.57%
Nil
$0.19
$483,093
$867,691
$22,751
B. Summary of number of options and its value
A summary of the number of company options issued in both the current and prior years to Key Management
Personnel and other employees that have an impact on the share-based payments expense in the current year as
follows:
61
Key Management Personnel
Other
Employees
Number
of shares
David
Reeves
Mark
Connelly
Kate
George
John
Ciganek
Paul
Brennan
Richard
Hill
Don
Russell
Various
NED options
300,000
622,749
200,000
-
-
-
Incentive options
3,287,082
1,025,937
3,056,298
3,802,333
5,132,988
-
-
-
300,000
-
-
369,000
179,861
73,888
-
-
-
-
-
-
-
-
-
-
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
668,646
750,312
842,187
-
-
-
-
-
-
-
3,056,298
1,114,667
1,426,333
1,261,333
-
-
-
-
5,132,988
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 23: Share-based Payments continued…
A summary of share-based payments expense for the Key Management Personnel and other employees are as follows:
Key Management Personnel
Other
employees
A$
David
Reeves
Mark
Connelly
Kate
George
John
Ciganek
Paul
Brennan
Richard
Hill
Don
Russell
Various
NED options
300,000
622,749
200,000
-
-
-
14,179
-
-
148,112
75,920
-
-
23,066
33,425
-
-
-
-
-
-
-
-
-
Incentive options
3,287,082
473,740
3,056,298
3,802,333
5,132,988
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total – Key Management Personnel (A$)
Total – Employees (A$)
285,998
320,929
360,226
-
-
-
936,349
16,051
20,539
18,163
-
-
-
-
86,013
1,790,349
1,022,362
-
-
-
-
A summary of the movements of all company options issued to Key Management Personnel as share-based
payments is as follows:
2023
2022
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
8,643,164
62
Expired/cancelled
Issued
Exercised
Outstanding at year-end
Exercisable at year-end
-
3,802,333
(3,456,428)
8,989,069
1,690,703
$0.00
-
$0.00
$0.00
$0.00
$0.00
Number of
options
5,400,000
-
3,909,831
(666,667)
8,643,164
4,500,000
Weighted
average
exercise price
$0.00
-
$0.00
$0.00
$0.00
$0.00
The weighted average exercise price of outstanding options at the end of the reporting year was nil (2022: nil).
The fair value of the options granted is deemed to represent the value of the employee services received over the
vesting period.
C. Summary of the Movements of All Company Options
A summary of the movements of all company options (excluding performance rights) on issue is as follows:
2023
2022
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
13,265,762
Issued
Expired/cancelled
Exercised
Outstanding at year-end
Exercisable at year-end
10,273,814
(1,895,641)
(6,395,935)
15,248,000
1,869,068
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Number of
options
7,770,950
6,966,129
(67,000)
(1,404,317)
13,265,762
6,816,300
Weighted
average
exercise price
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 24. Controlled Entities
A. Ultimate Parent Entity
Calidus Resources Limited is the ultimate parent of the Group (refer to "Note 1C" on page 44).
B. Subsidiaries
The consolidated financial statements include the financial statements of the Parent and the subsidiaries set out in
the following table:
Keras (Gold) Australia Pty Limited
Keras (Pilbara) Gold Pty Limited
Calidus Otways Pty Limited
Calidus Blue Spec Pty Limited
Country of
Incorporation
Australia
Australia
Australia
Australia
Class of
Shares
Ordinary
Ordinary
Ordinary
Ordinary
Percentage Owned
2023
100.0
100.0
100.0
100.0
2022
100.0
100.0
100.0
100.0
Note 25. Key Management Personnel (KMP)
A. Directors and Key Management Personnel
The names and positions of KMP during the current
and prior financial year are as follows:
Mr David Reeves
Managing Director
Mr Mark Connelly
Non-Executive Chairman
Mr John Ciganek
Non-Executive Director
Ms Kate George
Non-Executive Director
Mr Richard Hill
Chief Financial Officer
Mr Paul Brennan
Project Development
Mr Don Russell
General Manager Warrawoona
Operations
B. Key Management Personnel Compensation
Details of Key Management Personnel remuneration
are contained in the audited Remuneration Report
in the Directors’ Report. A summary of total
compensation paid to Key Management Personnel
during the year is as follows:
63
Short-term employee
benefits
Post-employment
benefits
2023
$
2022
$
1,625,000
1,383,083
157,700
131,108
Share-based payments
1,790,348
963,192
Total
3,573,048
2,477,383
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 26. Related Party Transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated.
Wild West Enterprises Pty Ltd - Office Rent
Rapallo Pty Ltd – Environmental Consulting Services
2023
$
75,600
35,785
2022
$
81,500
49,996
Refer to the Remuneration Report in section "5E. Other Transactions with KMP" on page 37 for further
information regarding the terms of the related party transactions.
Note 27. Commitments
A. Exploration Expenditure Commitments
Exploration expenditure commitments represent tenement rentals and expenditure that may be required to be
met under relevant legislation should the Group wish to retain tenure on all current tenements in which the
Group has an interest.
Exploration expenditure commitments payable:
Not later than 12 months
Between 12 months and five years
Later than five years
Total Exploration tenement minimum expenditure requirements
2023
$
2022
$
1,099,086
2,923,764
3,025,149
7,047,999
778,702
2,091,481
3,082,884
5,953,067
64
B. Operating Lease Commitments
The Company leases assets for operations and its
office premises. As at 1 July 2019, with the adoption of
AASB 16, operating leases as previously defined under
AASB 117, have for the most part, been recognised and
included as lease liabilities with future commitments
disclosed in "Note 17" on page 57. Any leases
that did not meet the definition of finance leases,
were either short-term in nature or did not meet the
recognition requirements.
C. Physical Gold Delivery Commitments
As part of the risk management policy of the Group
and in compliance with the conditions required by
the Group’s financier Macquarie Bank Limited (MBL),
the group has entered into gold forward contracts to
manage the gold price of a proportion of anticipated
gold sales. The contracts are accounted for as sales
contracts with revenue recognised once the gold has
been delivered to MBL. The physical gold delivery
contracts are considered a contract to sell a non-
financial item and therefore do not fall within the
scope of AASB 9 Financial Instruments. Hence no
derivatives are recognised.
Gold for physical
delivery
Contracted gold
sale price
Value of
committed sales Mark-to-market
ounces
$
$
$
Gold delivery commitments:
No later than 12 months
Between 12 months and 5 years
Total gold delivery commitments
48,500
57,750
106,250
2,369
2,365
2,367
114,917,700
(28,138,790)
136,603,375
(39,916,635)
251,521,075
(68,055,425)
Mark-to-market has been calculated using the spot price of A$2,880 per ounce as at 30 June 2023.
Mark-to-market represents the value of the open contracts at balance date, calculated with reference to the gold
spot price at that date. A negative amount represents a valuation in the counterparty’s favour.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 28. Operating Segments
For management purposes, the Group’s operations
are organised into one operating segment domiciled
in the same country, which involves the exploration
and exploitation of gold minerals in Australia. All
the Group’s activities are inter-related, and discrete
financial information is reported to the Managing
Director as a single segment. Accordingly, all
significant operating decisions are based upon
analysis of the Group as one segment. The financial
results from this segment are equivalent to the
statement of comprehensive income. The accounting
policies applied for internal reporting purposes are
consistent with those applied in preparation of these
financial statements.
Note 29. Financial Risk Management
A summary of the Group's financial assets and liabilities as at 30 June 2023 and 30 June 2022 is shown below:
Floating
interest
rate
Fixed
interest
rate
Non-
interest
bearing
$
$
$
2023
Total
$
Floating
interest
rate
Fixed
interest
rate
Non-
interest
bearing
$
$
$
2022
Total
$
Financial Assets
Cash and cash
equivalents
Trade and other
receivables
Financial assets
21,621,721
-
-
Total financial assets
21,621,721
Financial Liabilities
Financial liabilities at
amortised cost
Trade and other
payables
Short-term financial
liabilities
Long-term financial
liabilities
-
-
28,000,000
53,000,000
Total financial liabilities
81,000,000
Net financial assets/
(liabilities)
(59,378,279)
-
-
-
-
-
-
-
-
-
-
-
21,621,721
18,136,367
1,190,689
1,190,689
-
-
-
-
1,190,689 22,812,410
18,136,367
-
-
23,847,742
23,847,742
-
-
- 28,000,000 36,000,000
- 53,000,000
71,000,000
23,847,742 104,847,742 107,000,000
(22,657,053) (82,035,332)
(88,863,633)
-
-
-
-
-
-
-
-
-
-
-
18,136,367
1,271,717
1,271,717
163,056
163,056
1,434,773
19,571,140
-
-
20,703,473
20,703,473
65
-
-
36,000,000
71,000,000
20,703,473
127,703,473
(19,268,700)
(108,132,333)
Financial risk management objectives, exposures and management
The Group’s activities expose it to a variety of financial
risks: market risk (including foreign currency risk, price
risk, interest rate risk and equity price 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.
risk management and associated controls. Instead,
the Board approves all expenditure, is intimately
acquainted with all operations and discusses all
relevant issues at the Board meetings. The operational
and other compliance risk management have also
been assessed and found to be operating efficiently
and effectively.
The Board of directors has overall responsibility for the
establishment and oversight of the risk management
framework. The Board adopts practices designed
to identify significant areas of business risk and to
effectively manage those risks in accordance with
the Group's risk profile. This includes assessing,
monitoring and managing risks for the Group and
setting appropriate risk limits and controls. The Group
is not of a size nor is its affairs of such complexity
to justify the establishment of a formal system for
The Group uses derivative financial instruments such
as forward foreign exchange contracts to hedge
certain risk exposures. Derivatives are exclusively used
for hedging purposes, i.e., not as trading or other
speculative instruments. The Group uses different
methods to measure different types of risk to which it
is exposed. These methods include sensitivity analysis
in the case of interest rate, foreign exchange and other
price risks and ageing analysis for credit risk.
Annual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 29: Financial Risk Management continued…
A. Credit Risk
Credit risk refers to the risk that a counterparty
will default on its contractual obligations resulting
in financial loss to the Group. The Group has a
strict code of credit, including obtaining agency
credit information, confirming references, and
setting appropriate credit limits. The Group obtains
guarantees where appropriate to mitigate credit risk.
The maximum exposure to credit risk at the reporting
date to recognised financial assets is the carrying
amount, net of any provisions for impairment of
those assets, as disclosed in the statement of financial
position and notes to the financial statements.
The Group has no significant concentration of credit
risk with any single party with the exception of GST
receivable from the Australian Tax Office. At 30 June
2023, GST receivable for the Group totalled $852,760
(2022: $1,244,332).
B. Liquidity Risk
Vigilant liquidity risk management requires the Group
to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities
to be able to pay debts as and when they become
due and payable. The Group manages liquidity risk
by maintaining adequate cash reserves and available
borrowing facilities by continuously monitoring actual
and forecast cash flows and matching the maturity
profiles of financial assets and liabilities.
The following table details the Group's contractual
maturities for its financial liabilities. The table has been
drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The table
includes both interest and principal cash flows.
Within 1 Year
Greater than 1 Year
Total
2023
$
2022
$
2023
$
2022
$
2023
$
2022
$
Financial liabilities due for payment
Trade and other payables
23,847,742
20,703,473
-
-
23,847,742
20,703,473
Borrowings
28,000,000
36,000,000
53,000,000
71,000,000
81,000,000
107,000,000
Total contractual outflows
51,847,742
56,703,473
53,000,000
71,000,000
104,847,742
127,703,473
66
Financial assets
Cash and cash
equivalents
21,621,721
18,136,337
Trade and other receivables
1,190,689
Financial assets
-
1,271,717
163,056
Total anticipated inflows
22,812,410
19,571,110
-
-
-
-
-
-
-
-
21,621,721
18,136,337
1,190,689
-
1,271,717
163,056
22,812,410
19,571,110
(29,035,332)
(37,132,363)
(53,000,000)
(71,000,000)
(82,035,332)
(108,132,363)
Net (outflow)/inflow on
financial instruments
C. Market Risk
i. Interest Rate Risk
The Group’s main interest rate risk arises
from long-term borrowings. The long-term
borrowings have been obtained at variable rates
which expose the Group to interest rate risk.
The Group has short-term and long-term
borrowings outstanding as at 30 June 2023
of $28,000,000 and $53,000,000 respectively
(2022: $36,000,000 and $71,000,000
respectively). An increase/decrease in interest
rates of 100 basis points would have an adverse/
favourable effect on profit before tax of
$810,000. The Group’s interest rate risk exposure
will increase/decrease as debt is drawn/repaid.
ii. Foreign Exchange Risk
Foreign exchange risk arises from future
commercial transactions and recognised financial
assets and financial liabilities denominated in
a currency that is not the Group's functional
currency. The group does not have any material
exposure to foreign exchange risk.
iii. Commodity Price Risk
The Group’s exposure to commodity price
risk arises largely from Australian dollar gold
price fluctuations for its anticipated future gold
production and sales. The Group’s exposure
to movements in the gold price is managed
through the use of Australian dollar gold forward
contracts. The gold forward sale contracts do
not meet the criteria of financial instruments for
accounting purposes on the basis that they meet
the normal purchase/sale exemption because
physical gold will be delivered into the contract.
Further information relating to these forward
sale contracts is included in "Note 27C" on page
64. No sensitivity analysis is provided for these
contracts as they are outside the scope of AASB 9
Financial Instruments.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Notes to the Consolidated Financial Statements
Note 30. Events Subsequent to Reporting Date
On 11 July 2023, Calidus announced the positive
drilling results at its Felix gold discovery in the
Pilbara. All gold assays have been received from a
program of closed space, shallow RC drilling. The
results support Calidus’ strategy to grow inventory,
production, and mine life at its Warrawoona Gold
Project by defining and developing deposits within
trucking distance of Warrawoona.
On 14 August 2023, Calidus announced the
preliminary studies of tenements comprising the
Haoma JV had identified a significant opportunity to
increase near-term production by mining the Blue
Bar Gold Project. Blue Bar is identified as a priority
due to its proximity to Warrawoona and potential to
supply immediate ore to Warrawoona processing
plant and due to its significant exploration upside.
Note 31. Contingent Liabilities
A. Royalties
The Group has an obligation to pay royalties to
third parties on minerals produced from various
tenements. The royalties are based on either gross
revenue or a profit-based calculation. The payment
of royalties is dependent on future gold sales and
profit being generated.
On 11 September 2023, Calidus announced the final
approval had been received to commence mining the
Blue Spec project
B. Project Contracts
Calidus has entered into various operational
contracts related to the Warrawoona Gold Project.
Should these contracts be cancelled at the election
of Calidus prior to the expiry of the term Calidus has
a maximum liability of $34.7 million.
C. Other Contingent Liabilities
There were no other material contingent liabilities at
the end of the year.
Note 32. Auditor’s Remuneration
67
Remuneration of the auditor of the company for:
Auditing or reviewing the financial reports
Other services provided by a related practice of the auditor
2023
$
80,466
-
80,466
2022
$
58,343
-
58,343
Annual Report for the Financial Year ending 30 June 2023
Notes to the Consolidated Financial Statements
Note 33. Parent Entity Disclosures
Financial statements and notes for Calidus Resources Limited, the legal parent entity are provided below:
A. Financial Position of Calidus Resources Limited (Legal Parent)
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Options and share rights reserve
Accumulated losses
Total equity
B. Financial Performance of Calidus Resources Limited
Loss for the year
Other comprehensive (loss) / income
Total comprehensive loss
June 2023
June 2022
$
$
155,263,133
106,981,441
2,127,610
631,001
157,390,743
107,612,442
610,309
16,135
626,444
1,594,966
13,623
1,608,589
156,764,299
106,003,853
170,846,972
116,721,982
8,155,830
5,343,119
(22,238,502)
(16,061,248)
156,764,300
106,003,853
(6,177,255)
(5,314,344)
-
-
(6,177,255)
(5,314,344)
68
C. Guarantees entered into by Calidus Resources Limited for the debts of its subsidiaries
There are various parent guarantees entered into by Calidus Resources Limited for the debts of its subsidiaries as
at 30 June 2023 (2022: various).
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Directors’ Declaration
Directors’ Declaration
1.
In the opinion of the Directors of Calidus Resources Limited (the ‘Company’):
a. the financial statements, notes and the additional disclosures are 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
performance for the year then ended; and
ii. complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001;
b. 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
c. the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2. This declaration has been made after reviewing the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
MARK CONNELLY
Non-executive Chairman
Dated: 29 September 2023
69
Annual Report for the Financial Year ending 30 June 2023Annual Report for the Financial Year ending 30 June 2023 Directors’ Declaration
70
Warrawoona has total
Mineral Resources of
1.4Mozs and 662km2 of
prospective tenements
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Annual Report for the Financial Year ending 30 June 2023Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI Independent Auditor’s Report
Independent Auditor’s Report
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CALIDUS RESOURCES LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Calidus Resources 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 ended 30 June 2023, and notes to the financial statements,
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 then ended; 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 auditor independence requirements of 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.
71
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
Annual Report for the Financial Year ending 30 June 2023 Independent Auditor’s Report
72
Key Audit Matters (continued)
Carrying amount of Property, Plant & Equipment and Mine Development
Refer to Property, Plant & Equipment at Note 13 and Mine Development at Note 15
On 1 January 2023 the Company
attained commercial production at
the Warrawoona Gold Project (the
Project).
At this date the capitalized mine
properties under development
were effectively completed. The
capitalised costs were transferred
and reclassified to Property, Plant &
Equipment and Mine Development.
Subsequent to this date revenues
and expenditures of an operating
nature ceased to be capitalised and
commenced being recognised in
profit or loss. It was also the point at
which depreciation and amortization
of Property, Plant & Equipment and
Mine Development commenced.
The book value of Property,
Plant & Equipment and Mine
Development as at 30 June 2023
was approximately $195.4 million.
There were indications as at 30
June 2023 that the book value
of Property, Plant & Equipment
and Mine Development may have
been impaired. As a result the
Company carried out an impairment
assessment, conducted under
AASB 136 Impairment of Assets,
which included a comparison of the
recoverable amount of the Project
assets (based on value in use) with
their carrying amounts in the financial
statements. These assets were not
impaired as at 30 June 2023.
The evaluation of the recoverable
amount of these assets as at year-
end is considered a key audit matter
as it was based upon a model which
required significant judgement
in verifying the key assumptions
supporting the expected discounted
future cash flows of the Project.
Our audit focused on the Group’s
assessment of the carrying amount
of the Plant & Equipment and Mine
Development as this is the single
largest asset of the Group.
Our procedures included:
ā We reviewed the Group’s updated Feasibility Study (FS) released on
29 September 2020 and obtained an understanding of the process
associated with the NPV (value in use) model, as subsequently updated
at 30 June 2023, to assess the recoverable amount of the Project.
ā Critically evaluated management’s methodology in the NPV model
and the basis for key assumptions utilised in the model such as
discount rate, estimated life of mine, expected recoverable ounces
to be mined from the open pit and underground phases, estimated
project operating and development costs, gold price per oz, and
average AISC/oz.
ā We reviewed the sensitivity analysis included in the NPV model
around the key inputs in the NPV model for reasonableness.
ā We compared the NPV model to the version prepared as at 31
December 2022 in order to ensure that changes were logical and
reasonable
ā We compared actual costs incurred in developing the Warrawoona
Gold project with budgeted costs, noting that actual costs were
largely in line with budgets.
ā We reviewed the types of costs capitalised in Property, Plant &
Equipment and Mine Development, ensuring they were appropriate
and accurate. This included consideration of the increased
provision for Rehabilitation costs.
ā We substantiated a sample of capitalised expenditure incurred
during the year by agreeing to supporting documentation/invoices
ā We reviewed external and internal sources of information for
observable impairment indicators. This included reviewing minutes
of Board meetings, internal management reports, discussion with
management/directors and giving due consideration to recent trends
such as movement in gold prices, recent increases in costs and labour
and the Company’s market capitalisation, which was considerably
lower than its year-end net asset position as at 30 June 2023.
ā We reviewed the Company’s most recent Life of Mine Plan
and cashflow budgets for the next 12 months. Where available
we considered the results of reviews carried out by external
consultants or experts.
ā We discussed with management the operating performance of the
Warrawoona gold mine during the year, in particular between the
date commercial production was attained (1 January 2023) and
the date of our report This included consideration of assessment
criteria for attainment of “Commercial Production” in arriving at our
conclusion that 1 January 2023 was the appropriate date to adopt.
ā We reviewed the processes adopted and the results of the
reallocation process from mine properties under development that
took place with effect from 1 January 2023. Accounting treatments
and accounting policies adopted as from that date were also
reviewed and assessed as appropriate.
ā We undertook a site visit to the Project in late May 2023 in order to
inspect the major assets of the project, the project operations and
key internal controls and processes associated with processing and
recording of gold sales.
ā Assessed the appropriateness of the disclosures contained in the
financial report.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Independent Auditor’s Report
Key Audit Matters (continued)
Capitalised Exploration & Evaluation Assets
Refer to Note 14 Exploration and evaluation assets
At balance date, the Group’s statement of financial
position includes capitalised exploration and
evaluation assets of approximately $28.3 million.
The ability to recognise and to continue to defer
exploration and evaluation assets under AASB 6:
Exploration for and Evaluation of Mineral Resource
is impacted by the Group’s ability, and intention, to
continue to explore the tenements or its ability to
realise this value through development or sale.
Due to the significance of these assets and the
subjectivity involved in assessing the ability to
continue to defer these assets, this is considered a
key audit matter.
Our procedures included:
ā Ensuring the Group has the ongoing right to
explore in the relevant exploration areas of interests
which included performing ownership searches of
the tenements to Department of Mines WA & other
agreements.
ā Tested a sample of exploration & evaluation
expenditures capitalised during the year to
supporting documentation including contracts.
ā Ensuring the Group is committed to continue
exploration and evaluation activity in the relevant
exploration areas of interest by assessing their
exploration and future development expenditures
that have been budgeted for and reviewing minutes
of Board meetings and other internal reports.
ā Assessing the carrying value of these assets for
any indicators of impairment including comparing
against the Company’s market capitalisation.
ā We also assessed the appropriateness
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2023 but does not include the financial report
and our auditor’s report thereon.
73
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is
to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the 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 at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf.
This description forms part of our audit report.
Annual Report for the Financial Year ending 30 June 2023 Independent Auditor’s Report
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Calidus Resources Limited, for the financial year ended 30 June
2023 complies with section 300A of the Corporations Act 2001.
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.
NEIL PACE
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
74
Signed at Perth this 29th day of September 2023.
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Additional ASX Information
Additional ASX Information
as at 27 September 2023
The following additional information is required by the Australian Securities Exchange in respect of listed public
companies. As at 27 September 2023 there were 6,717 holders of Ordinary Shares and 288 holders of Listed Options.
Voting Rights
The voting rights attached to each class of equity security are as follows:
ā Ordinary Shares: Each ordinary share is entitled to one vote when a poll is called, otherwise each member
present at the meeting or by proxy has one vote on a show of hands.
ā Listed Options, Unlisted Options and Performance Shares: options and performance shares do not entitle the
holders to vote in respect of that equity instrument, nor participate in dividends, when declared, until such time
as the options are exercised or performance shares convert and subsequently registered as ordinary shares.
Top 20 Holders of Ordinary Shares
Ordinary Shares as at as at 27 September 2023
Rank Holder Name
1
2
3
4
5
6
7
8
9
ALKANE RESOURCES LTD
MACMAHON CONTRACTORS PTY LTD
"BNP PARIBAS NOMS PTY LTD "
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
"MRS ELEANOR JEAN REEVES "
CITICORP NOMINEES PTY LIMITED
"BNP PARIBAS NOMS PTY LTD "
"MACQUARIE BANK LIMITED "
"BNP PARIBAS NOMINEES PTY LTD "
10 MR STACEY RADFORD
11
12
13
14
MR STACEY RADFORD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
"NG INVESTMENT GROUP PTY LTD "
GARRETT SMYTHE LTD
15 MR EMANUEL JOSE FERNANDES DIAS
16
17
18
19
UBS NOMINEES PTY LTD
"ITA VERO PTY LTD "
"79 PTY LTD "
"MRS CORRINE PANZICH "
20 MR BRIAN MICHAEL MORITZ
Total
Total issued capital - selected security class(es)
Holding
54,685,118
49,880,350
42,912,418
34,200,263
20,842,230
19,226,718
13,622,520
12,903,921
9,168,277
8,000,000
5,000,000
4,417,592
4,280,732
4,226,358
3,336,277
3,205,043
3,200,000
3,190,952
3,050,000
2,946,456
% of
Issued
Capital
9.00%
8.21%
7.06%
5.63%
3.43%
3.16%
2.24%
2.12%
1.51%
1.32%
0.82%
0.73%
0.70%
0.70%
0.55%
0.53%
0.53%
0.52%
0.50%
0.48%
302,295,225
49.73%
607,879,861
100.00%
75
Annual Report for the Financial Year ending 30 June 2023 Additional ASX Information
Top 20 Holders of Listed Options
(exercisable at $0.30 on or before 27 September 2024)
Listed Options as at 27 September 2023
Rank Holder Name
1
2
3
4
5
6
7
8
8
8
9
9
10
11
12
13
14
15
16
17
"BNP PARIBAS NOMS PTY LTD "
ALKANE RESOURCES LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
MRS JULIE-ANN FRANCES ELIAS
"BNP PARIBAS NOMS PTY LTD "
"QUIGLEY NOMINEES INTERNATIONAL PTY LTD "
"CERTANE CT PTY LTD "
DR MICHAEL WINDUS COLLIN
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
MR STACEY RADFORD
UBS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
JETOSEA PTY LIMITED
"MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY LIMITED
"
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
"HAWKSBURN CAPITAL PTE LTD
"
JETOSEA PTY LTD
PENDEL PTY LTD
"CERTANE CT PTY LTD "
18 MR BRENT RODERICK POTTS
19
20
JETOSEA PTY LTD
BRETRED PTY LIMITED
Total
Total issued capital - selected security class(es)
Holding
13,947,268
5,952,381
5,509,047
5,314,471
1,700,000
1,502,493
1,200,000
1,000,000
1,000,000
1,000,000
952,381
952,381
878,543
750,000
714,286
618,962
600,477
595,238
520,000
500,000
476,193
476,191
475,000
% of
Issued
Capital
23.62%
10.08%
9.33%
9.00%
2.88%
2.54%
2.03%
1.69%
1.69%
1.69%
1.61%
1.61%
1.49%
1.27%
1.21%
1.05%
1.02%
1.01%
0.88%
0.85%
0.81%
0.81%
0.80%
46,635,312
78.96%
59,059,271
100.00%
76
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2023 Additional ASX Information
Substantial Holders of Ordinary Shares
Ordinary Shares as at 27 September 2023
Name
ALKANE RESOURCES LTD
MACMAHON CONTRACTORS PTY LTD
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Holding
54,685,118
49,880,350
42,912,418
34,200,263
% of Issued
Capital
9.00%
8.21%
7.06%
5.63%
Substantial Holders of Listed Optionholders
(exercisable at $0.30 on or before 27 September 2024)
Ordinary Shares as at 27 September 2023
Name
BNP PARIBAS NOMS PTY LTD
ALKANE RESOURCES LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
Distribution of Ordinary Shareholders
as at 27 September 2023
Holding
13,947,268
5,952,381
5,509,047
5,314,471
% of Issued
Capital
23.62%
10.08%
9.33%
9.00%
Holding Range
Holders
Total Units
% Issued Ordinary
Capital
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
Totals
709
1,997
1,077
2,309
625
6,717
424,004
5,667,549
8,627,408
84,608,434
508,552,466
607,879,861
0.07%
0.93%
1.42%
13.92%
83.66%
100.00%
77
Distribution of Listed Optionholders
(exercisable at $0.30 on or before 27 September 2024)
as at 27 September 2023
Holding Range
Holders
Total Units
% Issued Ordinary
Capital
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
Totals
3
57
5
172
51
288
10
230,807
40,608
6,564,450
52,223,396
59,059,271
-
0.39%
0.07%
11.12%
88.43%
100.00%
Unmarketable Parcels
The unmarketable parcels as at 27 September 2023 of each class of
listed security are as follows:
ā Ordinary Shares: 1,986 holders with less than a marketable parcel.
ā Listed Options: 116 holders with less than a marketable parcel.
On-Market
Buy-Back
There is no current
on-market buy-back.
Annual Report for the Financial Year ending 30 June 2023 Additional ASX Information
Unquoted Securities
As at 27 September 2023 the following unquoted securities are on issue:
Security Name
Units
No. Holders
UNL INC OPTIONS EXP 30/01/2025 @ $0.00
1,350,000
UNL OPTIONS EXP 04/01/2025 @ $0.00
UNL OPT EXP 31/12/23 @ $0.00 – TRANCHE 1
UNL OPT EXP 31/12/23 @ $0.00 – TRANCHE 2
UNL OPT EXP 31/12/24 @ $0.00 – TRANCHE 3
UNL OPT EXP 31/12/24 @ $0.00 – TRANCHE 4
UNL OPT EXP 31/12/23 @ $0.00 – TRANCHE 5
UNL OPT EXP 31/12/24 @ $0.00 – TRANCHE 6
UNL OPT EXP 31/12/24 @ $0.00 – TRANCHE 7
UNL EXEC OPT EXP 31/12/24 @ $0.00 – TR 2
UNL EXEC OPT EXP 31/12/24 @ $0.00 – TR 3
UNL NED OPT EXP 31/12/23 @ $0.00 – TR 1
UNL NED OPT EXP 31/12/24 @ $0.00 – TR 2
UNL NED OPT EXP 31/12/25 @ $0.00 – TR 3
OPT @ NIL EXP 31/12/25 - TR 8
OPT @ NIL EXP 31/12/26 - TR 9
OPT @ NIL EXP 31/12/26 - TR 10
EXECUTIVE OPT @ NIL EXP 31/12/26 - TR 11
EXECUTIVE OPT @ NIL EXP 31/12/26 - TR 12
133,333
70,813
26,122
581,513
528,460
83,360
753,715
753,715
341,979
341,979
2,407
220,407
287,074
122,981
2,789,056
2,789,056
1,901,167
1,901,167
1
1
2
3
17
17
1
3
3
1
1
1
3
3
8
29
29
3
3
78
Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI As at 27 September 2023 there were
6,717 holders of Ordinary Shares
and 288 holders of Listed Options
Suite 12, 11 Ventnor Ave, West Perth
Western Australia 6005
PO Box 1240, West Perth WA 6872
Western Australia 6005
E-mail: info@calidus.com.au
calidus.com.au