More annual reports from Canterbury Resources:
2023 ReportCANTERBURY RESOURCES LIMITED
ABN 59 152 189 369
ANNUAL REPORT 2023
Corporate Directory
Table of Contents
Board of Directors
ASX Code: CBY
Chairman's Report
Review of Operations
Directors Report
Auditor's Independence Declaration
Consolidated Financial Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Shareholder Information
1
2
9
21
22
26
65
66
70
Non-Executive Chairman
John Anderson
Grant Craighead Managing Director
Executive Director
Michael Erceg
Non-Executive Director
Ross Moller
Non-Executive Director
Robyn Watts
Company Secretaries
Ross Moller
Joan Dabon
Registered Office
Suite 301, 55 Miller Street,
Pyrmont, NSW 2009
+61 2 9392 8020
Telephone:
Website:
canterburyresources.com.au
Email: admin@canterburyresources.com.au
Share Registrar
Automic Group
Level 5, 126 Phillip Street, Sydney NSW 2000
Telephone:
Website:
Email:
+61 2 8072 1400
automicgroup.com.au
hello@automicgroup.com.au
Auditors
BDJ
Level 8, 124 Walker Street, North Sydney, NSW 2060
PO Box 1664, North Sydney, NSW 2059
Chairman's Report
Dear Shareholders
On behalf of your Board of Directors, I am pleased to present the 2023 Annual Report to shareholders of
Canterbury Resources Limited. During the year, we made pleasing progress across our portfolio of
large-scale copper-gold opportunities, including a major expansion of copper resources at Briggs and
substantial new funding for our Morobe tenements in Papua New Guinea (PNG).
At Briggs in Queensland, we completed further drilling, culminating in a 2.5x increase in Inferred Mineral
Resources1 to 415Mt at 0.25% Cu and 31ppm Mo. The deposit now contains 1.0 million tonnes of copper
metal, placing it in the Top 10 largest undeveloped projects in Australia. We also outlined Exploration
Targets2 totalling 480Mt to 880Mt at 0.2% to 0.3% Cu and 25ppm to 40ppm Mo. Funding is provided by
Alma Metals (ASX ALM) that can earn up to 70% interest by funding up to $15.25 million of exploration.
In PNG, the Bismarck Project on Manus Island (CBY 40%, Rio Tinto 60%) is prospective for concealed
porphyry copper-molybdenum-gold mineralisation proximal to extensive zones of lithocap, with
exploration being sole-funded by Rio Tinto. During the year, sampling and mapping focussed on the
Nanai-Njekal, Willie Headwaters, Tani and Olewai prospects. The data generated is being integrated
with existing mineralogical, geochemical, and geophysical data to optimise the design of potential drill
targets.
Canterbury holds a series of tenements in Morobe Province, which is a well-endowed metallogenic belt
that hosts world class epithermal and porphyry style deposits including Harmony Gold’s ~140koz pa
Hidden Valley gold mine3 and the massive Wafi-Golpu project4 owned by Newcrest Mining and
Harmony Gold that has Mineral Resources containing 21.7Moz gold and 7.5Mt copper. Potential
development of Wafi-Golpu will represent a major step forward for the province as well as expanding
regional infrastructure and access near Canterbury’s Wamum and Waits Creek tenements. Canterbury
recently reached agreement on a joint venture covering its Morobe Projects5. Under the agreement
private exploration group Syndicate Minerals can earn up to 70% interest by funding up to USD $20
million of exploration and assessment activity.
Key assets in the Morobe JV include the Idzan Creek (137.3Mt at 0.53g/t Au and 0.24% Cu) and
Wamum Creek (141.5Mt at 0.18g/t Au and 0.31% Cu) deposits6 which represent a potential stand-alone
development, as well as undrilled porphyry Cu-Mo-Au targets at Yalua and Waits Creek. There are also
several laterally extensive high-grade Au-Cu lodes, such as Ekoato, Otibanda and Waikanda, that are
geologically comparable to lodes at the successful Kainantu gold mine located ~150km northwest.
I wish to thank all our stakeholders, including joint venture partners, landowners, and shareholders, for
their continuing support and look forward to an exciting year ahead. The strategic funding agreements
established across our key projects will be a catalyst for an acceleration of exploration efforts, providing
a high level of activity and news flow into the foreseeable future.
Yours sincerely,
John Anderson, Chairman
1 CBY ASX Announcement 6 July 2023 “Updated Briggs Resource”
2 CBY ASX Announcement 18 July 2023 “Briggs Soil Sampling Confirms Upside” NB the potential tonnage and grade
of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral
Resource. It is uncertain if further exploration will result in an increase in the Mineral Resource Estimate.
3 Harmony Gold website www.harmony.co.za
4 Newcrest ASX Announcement 21 September 2023 “Annual Mineral Resources and Ore Reserves Statement”
5 CBY Announcement 25 July 2023 “Morobe Joint Venture Proceeds”
6 CBY ASX Announcement 25 November 2020 “Increased Resources at the Wamum Project”
Canterbury Resources
Annual Report 2023
1
Review of Operations
INTRODUCTION
Canterbury is a mineral exploration company
that generates and explores potential Tier-1
copper-gold projects in proven mineral belts
throughout the southwest Pacific region.
It has a strong portfolio of projects in Australia
and Papua New Guinea (PNG) that are
prospective for porphyry copper-gold and
epithermal gold-silver deposits.
The Company is managed by an experienced
team of resource professionals, with a strong
track record of exploration success and mine
development in the region. It periodically forms
partnerships with other resource companies to
mitigate risk and defray cost.
Joint venture partners currently comprise Rio
Tinto (ASX: RIO), Alma Metals (ASX: ALM) and
private exploration group Syndicate Minerals.
Canterbury receives management and
operating fees from each of the joint ventures.
The Company has established significant
mineral resources at three deposits:
•
•
the Briggs copper deposit in
Queensland, and
the Idzan Creek and Wamum Creek
copper-gold deposits in PNG.
In aggregate these deposits contain around 1.8Mt copper and 3.2Moz gold. Canterbury’s geologists have
identified multiple opportunities to significantly expand these resources.
QUEENSLAND
▲
Briggs JV (CBY 70%, Alma Metals Earn-In JV rights, Rio Tinto 1.5% NSR at Briggs & Mannersley)
The Briggs, Mannersley, Fig Tree Hill and Don River tenements (CBY 70%) are in central Queensland, ~60km
inland from the industrial port of Gladstone. The area is prospective for porphyry related copper-molybdenum-
gold mineralisation systems, including the Briggs deposit where an Inferred Mineral Resource of 415Mt at 0.25%
Cu and 31ppm Mo has been delineated at the central and northern zones. In addition, an Exploration Target
of 480Mt to 880Mt at 0.20% to 0.30% Cu and 25ppm to 40ppm Mo has been outlined, representing potential
lateral extensions of the known mineralisation. The Exploration Target is being assessed in ongoing drilling
programs. Note, the potential tonnage and grade of this target is conceptual in nature and there has been
insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in an
increase in the Mineral Resource Estimate.
The Briggs deposit is located ~15km north of a significant road, rail and power corridor providing excellent
infrastructure and logistics connections to Gladstone port. Preliminary metallurgical test-work has achieved
high copper recoveries (92-95% recovery) via standard crushing, grinding and flotation to produce viable
concentrate grades.
Funding for the project continues to be provided by joint venture Alma Metals (ASX ALM) which has the right
to earn up to 70% interest through staged exploration and assessment expenditure totalling $15.25M.
Canterbury Resources
Annual Report 2023
2
Review of Operations
During the past year, significant progress was achieved. Key activities included:
•
•
•
a deep core drilling program confirming broad intervals of porphyry copper-molybdenum
mineralisation at the northern porphyry target and as extensions of the central porphyry zone,
completion of the grid-based soil sampling program providing high resolution, low detection level gold
and multi-element geochemistry across the entire Briggs porphyry system, and
updated Mineral Resource and Exploration Target estimates for the Briggs project.
Soil sampling over Briggs has outlined anomalous copper at greater than 1,000ppm over an area greater than
2km long and up to 1km wide. Within this anomalous area there are several clusters of higher-grade copper
which reflect the known mineralised centres at Briggs Central, the Northern Porphyry and the Southern
Porphyry. Following drilling at the Central and Northern areas, an updated Mineral Resource estimate was
completed in July 2023 with a 2.5x increase in contained copper metal compared to the 2020 estimate.
The surrounding Exploration Target provides potential for substantial increases in the Mineral Resource Estimate
and a further phase of exploration drilling commenced in August 2023. This program is also assessing higher-
grade portions of the Briggs Central resource in greater detail.
Canterbury Resources
Annual Report 2023
3
Review of Operations
Peenam (CBY 100%)
▲
Canterbury holds EPM27756 (Peenam), located 150km northwest of Brisbane, that is prospective for porphyry
style Cu-Au-Mo mineralisation and has been the subject of limited historical exploration. Land access has
recently been achieved ahead of a planned bedrock sampling and mapping program. The data from this
program will inform potential future drilling.
PAPUA NEW GUINEA
▲
Morobe JV (CBY 100%, Syndicate Minerals Earn-in JV rights)
The Morobe joint venture covers a series of tenements in Morobe Province, a well-endowed metallogenic belt
that hosts world class epithermal and porphyry style deposits:
•
•
EL2658 Wamum & EL2782 Waits Creek (application) directly northwest of the world-class Wafi-Golpu
Project owned by Newcrest Mining & Harmony Gold (Mineral Resources contain 26Moz gold, 8.6Mt
copper), and
EL2302 Mt Leahy & EL2314 Mt Evina west of Harmony Gold’s ~140koz pa Hidden Valley gold operation.
Canterbury’s Wamum tenement covers a
series of copper-gold porphyry related
prospects, including two significant deposits
containing a combined 2.6Moz gold and
569kt copper:
•
Idzan Creek (Inferred Mineral
Resource 137.3Mt at 0.53g/t Au and
0.24% Cu) and
• Wamum Creek (Inferred Mineral
Resource 141.5Mt at 0.18g/t Au and
0.31% Cu).
Nearby prospects are being explored and
are likely to generate additional drill targets.
The Idzan Creek and Wamum Creek deposits
remain open and provide potential to
support a standalone operation based on
both open cut and underground mining.
Preliminary metallurgical testwork confirms
that encouraging copper and gold
recoveries are achievable via conventional
processing (crush-grind-flotation).
The Waits Creek application adjoins the
Wamum tenement and covers an undrilled
Cu-Au prospect where surface sampling and
mapping has outlined a zoned alteration
system, with a coincident geophysical
signature.
Further south, the Mt Leahy and Mt Evina
tenements cover two related styles of
mineralisation: narrow, high grade epithermal gold-copper lodes (e.g., Otibanda, Ekoato) and large-scale
porphyry copper-molybdenum-gold systems (e.g., Yalua). Multiple targets are now at, or close to, the drill-
ready stage.
Canterbury Resources
Annual Report 2023
4
Review of Operations
In May 2023, a private exploration group Syndicate Minerals agreed to form an Earn-in Joint Venture covering
the Morobe tenement package. Key features of the agreement are:
•
•
Stage 1 – US$5 million of exploration and assessment expenditure within 3 years of commitment to
Stage 1, including a minimum of 1,000m core drilling, to earn a 40% joint venture interest.
Stage 2 – US$15 million of exploration and assessment expenditure within 3 years of commitment to
Stage 2, including a minimum of 2,000m core drilling, to earn an additional 30% joint venture interest.
• Work programs to be managed by Canterbury.
•
Exclusivity and signing fees of A$100,000 paid to Canterbury.
Bismarck JV (CBY 40%, Rio Tinto 60%)
▲
The Bismarck joint venture is currently sole-funded by Rio Tinto Exploration (PNG) Limited under a Farm-In and
Joint Venture Agreement providing the right to earn up to 80% interest. The Project is considered prospective
for concealed porphyry-style copper-gold-molybdenum mineralisation adjacent to or below extensive zones
of mapped advanced argillic altered lithocap.
During 2023, the joint venture partners completed two field programs. These included regional drainage
sampling below the elevated terrain of the lithocap to validate historical geochemistry and search for
mineralogical associations related to proximal porphyry alteration types, plus geological mapping and
sampling traversing high priority creeks with anomalous geochemistry and mineralogy to search for porphyry
and skarn related mineralisation, alteration, and veining.
The data generated from these programs is being integrated with existing mapping plus mineralogical,
geochemical and geophysical data to optimise design of potential future drill targets.
MATERIAL BUSINESS RISKS
The Company has exposure to several material economic, environmental, and social sustainability risks, as is
typical for a mineral exploration and development company, including but not limited to those set out below.
In accordance with the Company’s Board Charter and Risk Management Policy, the Board has oversight of
risk management with the assistance of the Risk Management Committee.
Tenure and access
The Company’s exploration tenure in Australia and Papua New Guinea is subject to periodic renewal. The
renewal of the term of granted tenure is subject to the discretion of the relevant authority and may be subject
to conditions. The imposition of new conditions or the inability to meet those conditions may adversely affect
the Company or its prospects. Where the Company's projects include private land, exploration activity may
require authorisation or consent from the owners of or other interest holders in that land.
Exploration
Potential investors should understand that mineral exploration and development are high-risk undertakings.
There can be no assurance that exploration of the Company’s projects, or any other projects that may be
acquired in the future, will result in the discovery of an economic ore deposit. Even if an apparently viable
deposit is identified, there is no guarantee that it can be economically exploited. The success of the Company
will also depend upon the Company having access to sufficient development capital, being able to maintain
title to its projects and obtaining all required approvals for its activities. In the event that exploration programs
prove to be unsuccessful this could lead to a diminution in the value of the tenements, a reduction in the cash
reserves of the Company and possible relinquishment of its projects.
Climate change
The operations and activities of the Company are subject to changes to local or international compliance
regulations related to climate change mitigation efforts. While the Company will endeavour to manage these
risks and limit any consequential impacts, there can be no guarantee that the Company will not be impacted
by these occurrences. Climate change may also cause certain physical and environmental risks that cannot
be predicted by the Company, including events such as increased severity of weather patterns, incidence of
extreme weather events and longer-term physical risks such as shifting climate patterns. All these risks
associated with climate change may significantly change the industry in which the Company operates.
Canterbury Resources
Annual Report 2023
5
Review of Operations
Reliance on key personnel
The Company’s future depends, in part, on its ability to attract and retain key personnel. It may not be able to
hire and retain such personnel at compensation levels consistent with its existing compensation and salary
structure. Its future also depends on the continued contributions of its key management and technical
personnel, the loss of whose services would be difficult to replace. In addition, the inability to continue to
attract appropriately qualified personnel could have a material adverse effect on the Company’s business.
Environmental
The operations and proposed activities of the Company are subject to laws and regulations concerning the
environment. Approvals are required for land clearing and for ground disturbing activities. Delays in obtaining
such approvals can result in delays to anticipated exploration programs or mining activities. As with most
exploration projects and mining operations, the Company’s activities are expected to have an impact on the
environment, particularly if advanced exploration or mine development proceeds. It is the Company’s
intention to conduct its activities to the highest standard of environmental obligation, including compliance
with all environmental laws. There is a risk that environmental laws and regulations become more onerous,
making the Company’s activities more expensive.
Economic
General economic conditions, tax reform, new legislation, movements in interest and inflation rates and
currency exchange rates could adversely affect the Company, as well as its ability to fund its operations.
Additional requirements for capital
The operations of the Company are currently dependent on its ability to obtain financing through debt and
equity to meet its business objectives. There is a risk that the Company may not be able to access capital from
debt or equity markets for future operations, projects or developments. This could have a material adverse
impact on the Company's business and financial condition.
Contract and contractor
The Company has outsourced certain activities to third party contractors. Such contractors may not be
available to perform services for the Company when required or may only be willing to do so on terms that are
not acceptable to the Company. Contractor performance may be hampered by capacity constraints and
may not comply with applicable provisions, standards or laws in respect of quality, safety, environmental
compliance and timeliness, which may be difficult to control. In the event that a contractor underperforms or
its services are terminated, the Company may not be able to find a suitable replacement on satisfactory terms
within the required timeframe or at all. These circumstances could have a material adverse effect on the
Company’s operations.
Exchange rates
Due to its operations in Papua New Guinea, the Company is exposed to the fluctuations and volatility of the
rate of exchange between the PNG Kina and the Australian dollar as determined in international markets.
Movements in interest rates may result from changes in economic conditions, monetary and fiscal policies,
international and regional political events or other factors beyond the control of the Company, which may
adversely affect the financial condition of the Company.
Cost inflation
Higher than expected inflation rates generally, specific to the mining industry, or specific to PNG or Australia,
could be expected to increase operating and capital expenditure costs and potentially reduce the value of
future project developments.
Sovereign risks
The Company's exploration and development activities are carried out in Papua New Guinea and Australia.
As a result, the Company will be subject to political, social, economic, and other uncertainties including, but
not limited to, changes in policies or the personnel administering them, foreign exchange restrictions, changes
of law affecting foreign ownership, currency fluctuations, local beneficiation requirements, local content laws,
expropriation risk, royalties and tax increases. Other potential issues contributing to uncertainty such as
Canterbury Resources
Annual Report 2023
6
Review of Operations
repatriation of income, exploration licensing, environmental protection and Government control over mineral
properties, changes to political, legal, regulatory, fiscal and exchange control systems and changes in
Government may also impact the Company’s projects or operations.
CORPORATE GOVERNANCE
Pursuant to the ASX Listing Rules, Canterbury ‘s Corporate Governance Statement will be released in
conjunction with this report. The Corporate Governance Statement and the corresponding Appendix 4G can
be found at www.canterburyresources.com.au/about-us/corporate-governance/.
OUTLOOK
Canterbury is positioned to maintain a high level of field activities for the foreseeable future, with exploration
and assessment activity being fully funded by joint venture partners across the portfolio.
In Queensland, drilling continues at the Briggs Copper Project testing lateral extensions to the mineralisation
system, as well as assessing higher grade settings in more detail. This work has the potential to significantly
enhance existing resources and the project is likely to transition into a scoping study evaluation during 2024.
At the Bismarck Project in PNG, the results from recent mapping and sampling are being used to optimise the
design of potential future drill programs targeting concealed porphyry-style copper-gold-molybdenum
mineralisation.
In Morobe Province, PNG the recent introduction of a joint venture partner is a catalyst for an acceleration of
exploration activity. Geological and geophysical reviews are leading to a prioritisation of targets, with
additional mapping and sampling proposed ahead of drilling at selected targets in 2024 and beyond.
REFERENCES
Additional details including JORC 2012 reporting tables, where applicable, can be found in releases lodged
with ASX or similar and referred to in this report:
• CBY ASX Announcement 25/11/2020 “Increased Resources at the Wamum Project”
• CBY ASX Announcement 04/07/2022 “Alma Metals Commits to the Briggs Joint Venture”
• CBY ASX Announcement 31/05/2023 “Morobe Project Joint Venture”
• CBY ASX Announcement 25/07/2023 “Morobe Project Joint Venture Proceeds”
• CBY ASX Announcement 06/07/2023 “Updated Briggs Resource exceeds 1Mt contained copper”
• CBY ASX Announcement 18/07/2023 “Briggs Soil Sampling Confirms Upside”
• CBY ASX Announcements 28/07/2023, 28/04/2023, 31/01/2023 & 27/10/2022 “Quarterly Activities Report”
• CBY ASX Announcement 21/09/2023 “Alma Commits to Stage-2 of Briggs Copper Project”
DECLARATION AND JORC COMPLIANCE
The technical information in this report which relates to Exploration Results and Exploration Targets is based on
information compiled by Mr Michael Erceg, MAIG RPGeo. Mr Erceg is an Executive Director and shareholder of
Canterbury Resources and has sufficient experience relevant to the style of mineralisation and type of deposit
under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Erceg consents to the inclusion in this report of the matters based on that information in the form and
context in which it appears.
The information in this report that relates to the Estimation of Mineral Resources, has been prepared by Mr
Geoff Reed, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Consulting
Geologist of Bluespoint Mining Services and a shareholder in Canterbury Resources. Mr Reed has sufficient
experience that is relevant to the style of mineralisation and type of deposit under consideration and to the
activity 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. Mr Reed consents to the
inclusion in this report of the matters based on that information in the form and context in which it appears.
Canterbury Resources
Annual Report 2023
7
Review of Operations
FORWARD LOOKING STATEMENTS
Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”,
“believe(s)”, “will”, “may”, “anticipate(s)”, “potential(s)”and similar expressions are intended to identify
forward-looking statements. These statements include, but are not limited to statements regarding future
production, resources or reserves and exploration results. All such statements are subject to certain risks and
uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that
could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-
looking information and statements. These risks and uncertainties include, but are not limited to: (i) those
relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and
conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining
dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii)
the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks
related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain
adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental
approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties
related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place
undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not
undertake any obligation to revise and disseminate forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
TENEMENT INFORMATION (as at 17 October 2023)
Tenement
Location
Project
Status
Interest
EPM 19198
EPM 18504
EPM 27317
EPM 28588
EPM 27756
EL 2302
EL 2314
EL 2658
EL 2782
EL 2378
EL 2390
Queensland
Queensland
Queensland
Queensland
Queensland
Morobe Province, PNG
Morobe Province, PNG
Morobe Province, PNG
Morobe Province, PNG
Manus Island, PNG
Manus Island, PNG
Briggs *
Mannersley *
Fig Tree Hill **
Don River **
Peenam
Mt Leahy ***
Mt Evina ***
Wamum ***
Waits Creek ***
Bismarck ****
Bismarck ****
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Application
Granted
Granted
70%
70%
70%
70%
100%
100%
100%
100%
100%
40%
40%
*
**
***
****
Subject to a 1.5% NSR and a decision to mine payment in favour of Rio Tinto Exploration Pty Ltd plus a
Earn-In Joint Venture with Alma Metals which has the right to earn up to 70%
Subject to an Earn-In Joint Venture with Alma Metals which has the right to earn up to 70%
Subject to an Earn-In Joint Venture with Syndicate Minerals which has the right to earn up to 70%
Subject to a Joint Venture and Farm-In Agreement with Rio Tinto Exploration (PNG) Limited which is
currently sole-funding exploration to earn an 80% JV interest
MINERAL RESOURCE INFORMATION (as at 17 October 2023)
Project
Deposit
Category
Cut-off
Mt
Idzan Creek
Wamum *
Wamum * Wamum Creek
Briggs **
Total
Briggs
Inferred
Inferred
Inferred
0.2g/t Au
0.2% Cu
0.2% Cu
137.3
141.5
415.0
Au
(g/t)
0.53
0.18
-
Cu
(%)
0.24
0.31
0.25
Mo
(ppm)
-
-
31
Au
(Moz)
2.34
0.82
-
3.16
Cu
(kt)
327
435
1,030
1,792
Mo
(Mlb)
-
-
28.6
28.6
*
**
The Mineral Resource estimates for Idzan Creek and Wamum Creek are unchanged from the 2022
Annual Report.
The updated Mineral Resource Estimate for Briggs was announced 6th July 2023.
Reporting of Mineral Resources is undertaken in compliance with the JORC Code. Resources are on a 100%
project basis.
Canterbury Resources
Annual Report 2023
8
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
The directors of Canterbury Resources Limited submit the annual report of the consolidated entity (“the
group”) consisting of Canterbury Resources Limited (“the company”) and the entities it controlled at the end of,
or during the financial year ended 30 June 2023. The directors’ report as follows:
Directors
The following persons were directors of the company during the whole of the financial year and up to the date
of this report, unless noted otherwise:
John Ernest Douglas Anderson: Non-Executive Chairman
Grant Alan Craighead: Managing Director
Ross Earle Moller: Non-Executive Director and Co-Company Secretary
Michael Matthew Erceg: Executive Director
Robyn Watts: Non-Executive Director
Information about the directors
At the date of this report there are six senior executives comprising four males and two females. The six
senior executives include five directors and one co-company secretary. Ross Earle Moller, director, also acts
as a co-company secretary.
John Ernest Douglas Anderson - BCom, MBA, GAICD
Non-Executive Chairman
Experience and expertise
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury shares
and options
John has 40+ years experience in banking, investment banking and general
consulting in Australia and Chile. He has held positions of Managing Director
or Chairman with several public and private companies in Australia, and as a
Director of mining companies in Chile. John has experience in general
financing and capital raisings, developing and implementing business plans
for new and existing entities, and taking companies from IPO through to
operations. In ASX listed companies, in the capacity of director, managing
director or chairman, John has been a member of audit, remuneration and
finance committees, and was Chairman of Anchor Resources Ltd from IPO
through to the sale of controlling interest in 2011. John was appointed to the
Canterbury Board in 2011.
None
None
Chairman
Ordinary shares (Un-Escrowed) – 6,695,023
Options (Un-Escrowed) – under ESOP expiring 30 June 2024 – 300,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2025 – 500,000
9
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Information about the directors (cont’d)
Ross Earle Moller - BCom, Dip AppCorpGov, CA ANZ, FGIA, FCG (CGP)
Non - Executive Director and Co Company Secretary
Experience and expertise
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury shares
and options
Grant Alan Craighead - BSc, MAusIMM, GAICD
Managing Director
Experience and expertise
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury shares
and options
Ross is a Chartered Accountant and Chartered Governance Professional and
brings 30+ years experience in providing corporate advisory and secretarial
services to a range of listed and unlisted companies. He has expertise in
financial management, corporate governance and strategic planning, as well
as commercial and legal risk issues. Ross is based in Singapore and is an
Executive Director of a Management Consultancy business that operates
across the Asia-Pacific region.
Smart Software (Singapore) Pte. Ltd.
None
None
Ordinary shares (Un-Escrowed) – 2,604,500
Options (Un-Escrowed) – under ESOP expiring 30 June 2024 – 300,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2025 – 500,000
Grant is a geologist with 40+ years experience in the exploration, mining and
financial sectors. This includes eight years as Manager Geology with Elders
Resources NZFP Ltd and five years as a resource analyst at Macquarie
Bank. During his period with Elders, he was directly associated with
exploration and development successes including Red Dome, Selwyn, Wafi-
Golpu, Glendell, Narama and Kidston. He was a co-founder of Anchor
Resources Ltd and its Managing Director during the sale of controlling
interest in 2011. He is also a co-founder and director of Breakaway
Investment Group, a financial company that provides private equity and
advisory services in the resource sector.
Breakaway Investment Group
None
Managing Director
Ordinary shares (Escrowed) – 500,000
Ordinary shares (Un-Escrowed) – 9,797,699
Options (Un-Escrowed) – under ESOP expiring 30 June 2024 – 300,000
10
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Information about the directors (cont’d)
Michael Matthew Erceg - BSc, MSc, Dip Min Econ, MAIG, RPGeo
Executive Director
Experience and expertise
Michael is a geologist with 40 years experience in mineral exploration, mine
development and operations in New Zealand, Australia, Papua New Guinea,
Vanuatu, the Philippines and China. He is a specialist in southwest Pacific
porphyry copper-gold and epithermal gold-silver systems, and has a strong
understanding of their geological, geochemical, geophysical and alteration
footprints. He has extensive experience
remote area
reconnaissance and advanced exploration programs, including an ability to
readily adapt to culturally diverse environments and work effectively with
local professional staff. During his career he has made significant direct
contribution to the discovery and/or delineation of the Red Dome, Northwest
Mungana, Wafi-Golpu, Ok Tedi, New Holland underground and
Murrawombie/Larsens/Northeast ore bodies.
None
None
in managing
Manager Exploration
Ordinary shares (Un-Escrowed) – 1,382,250
Options (Un-Escrowed) – under ESOP expiring 30 June 2024 – 300,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2025 – 500,000
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury shares
and options
Robyn Watts
Non-Executive Director
Experience and expertise
Robyn is an experienced Chair and Non-Executive Director of ASX and private
company boards, which followed a 25+ year executive career as a CEO,
across a diverse range of sectors including telecommunications, retail, media,
entertainment and education sectors. Robyn’s experience is characterised by
companies with robust growth strategies involving significant M&A, business
transformation and turnaround, capital raising, strategic planning, development
of digital capability and customer engagement and international business
activity. Her ASX experience also includes Governance and Compliance,
Remuneration and Nomination (Chair); and Audit and Risk Committees. Robyn
has a strong background both professionally and personally in Papua New
Guinea over 35 years. This has given her experience in dealing with
government, local landowner groups and traditional cultures.
Other current directorships None
Former directorships in last 3
years
Special responsibilities
Interests
shares and options
in Canterbury
Vita Group Ltd
None
Ordinary shares (Un-Escrowed) – 175,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2024 – 300,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2025 – 500,000
11
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Co Company secretary information
Véronique Morgan-Smith - LLB Hons (UK), MBDE (Fr), CAPA (Fr), Law Dip. (Aus) Company Secretary and In-
House Legal Counsel - Resigned 8 September 2023 and replaced by Joan Dabon.
Véronique was appointed as Company Secretary and In-House legal Counsel in November 2013. She has
19+ years’ experience as a corporate transactions lawyer, both in major international law firms and in-house,
as an Australian solicitor and a French avocat d’affaires. She has advised multinational companies and
smaller businesses from start-up through to domestic and cross-border transactions and joint-ventures in
various legal systems, including Australia, France, the UK, the US, Hong Kong, OHADA Africa, South Africa
and various Pacific Islands. Her broad practice has focused on mining and mineral resources in recent years,
and she acts as the company secretary of several private and public companies. Véronique uses her varied
legal expertise to assist the Board in corporate governance and compliance matters, capital raising and
corporate transactions.
Principal activity
The principal activity of the group is the participation in mineral exploration projects, with tenements currently
held in Queensland and Papua New Guinea (PNG). The group primarily targets prospects with potential to
host large-scale copper and/or gold deposits.
There were no significant changes in the group’s activities during the period.
Financial result
The consolidated loss of the group after providing for income tax for the year ended 30 June 2023 was
$817,813 (2022: loss $1,795,267).
The net assets of the group increased by $84,151 from $11,231,770 at 30 June 2022 to $11,315,921 at
30 June 2023, primarily due to share issuances during the year amounting to $858,120, partially offset by the
group's loss for the year of $817,813.
Dividends
There were no dividends paid or declared for the period ended 30 June 2023 (2022: nil). The directors have
not made any recommendations for payment of dividends in respect of the financial year.
Significant changes in the state of affairs
Other than as noted above, there were no other significant changes in the state of affairs of the group during
the reporting period.
Review of operations
During the year Canterbury continued to generate and explore large-scale porphyry copper-molybdenum-gold
opportunities in Papua New Guinea and Queensland.
Significant advancement was achieved at the Briggs Copper Project in Queensland, where the Company
upgraded its Mineral Resource estimate for the Briggs deposit to 415Mt at 0.25% Cu and 31ppm Mo. An
Exploration Target of 480Mt to 880Mt at 0.2% to 0.3% Cu and 25ppm to 40ppm Mo was also estimated
covering potential extensions to the Briggs deposit and these zones will be assessed in future drilling
programs. Activity on the Briggs Copper Project continues to be funded by Alma Metals (ASX: ALM) under an
earn-in agreement, whereby it can earn up to 70% interest by sole-funding up to $15.25 million of assessment
activity.
12
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Review of operations (cont'd)
In PNG, Canterbury is operating at two project areas: the Bismarck Project on Manus Island and the Morobe
Project in Morobe Province.
The Bismarck Project is the subject of a Farm-In and Joint Venture Agreement with Rio Tinto Exploration
(PNG) Limited which is earning up to 80% project interest by funding and completing staged exploration
programs. A series of surface sampling and mapping programs have been completed around the Chiniwea,
Dremsel, Nani-Njekel and Willi Headwater areas, targeting porphyry related mineralisation, alteration and
veining, with results and observations being consistent with the presence of skarn and porphyry-style copper-
molybdenum-gold systems. The data being generated is informing the design of potential future drill programs.
The Morobe Project covers four tenements and that are collectively the subject of a recently formed
agreement with Syndicate Minerals. Under the Morobe Project agreement, Syndicate Minerals can earn up to
70% interest via funding of up to US$20 million of staged exploration and assessment activities. Canterbury
has previously estimated significant resources at two deposits; Idzan Creek (137.3Mt at 0.53g/t Au and 0.24%
Cu) and Wamum Creek (141.5Mt at 0.18g/t Au and 0.31% Cu). In addition, Canterbury has identified
significant undrilled porphyry Cu-Mo-Au targets at Waits Creek, Yalua and Bobanda, as well as high-grade Au-
Cu lodes at Ekoato, Otibanda and Waikanda.
Commitments for expenditure
In order to maintain the group’s tenements in good standing with the relevant authorities, the group incurs
exploration expenditure under the terms of each licence. The indicative minimum exploration expenditure
requirement for FY24 is approximately $2,577,500, of which approximately $2,537,500 is covered by project
funding partners. This is a pro rata estimate, based on annualised licence terms, converted to AUD at current
exchange rates.
Directors’ meetings
The following table sets out the number of directors’ meetings (including meetings of committees of directors).
Committee
Board Meetings
Risk
Audit
Remuneration
Governance
Nomination
Held
Attended Held
Attended Held
Attended Held
Attended Held
Attended Held
Attended
R Moller
J Anderson
12
12
G Craighead 12
M Erceg
R Watts
12
12
12
9
12
12
12
4
4
4
4
4
4
4
4
4
4
2
-
-
-
2
2
-
-
-
2
2
2
-
-
2
2
2
-
-
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Events since the end of the financial year
Since 30 June 2023, the following events have arisen:
On 24 July 2023, Syndicate Minerals exercised an option to enter into an agreement ('Morobe Project
agreement") whereby it has the conditional right to earn up to a 70% interest in Canterbury's Papua New
Guinea mineral exploration projects in Morobe Province via funding of up to US$20 million of staged
exploration and assessment activities. The Morobe Project tenements comprise: EL2658 "Wamum", EL2782
(application) 'Waits Creek", EL2302 "Mt Leahy" and EL2314 "Mt Evina". Syndicate Minerals paid a signing fee
of A$80,000.
On 8 September 2023 Veronique Morgan-Smith resigned as Company Secretary and Joan Dabon was
appointed as Company Secretary.
13
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Events since the end of the financial year (cont'd)
On 21 September 2023 Alma Metals Limited achieved the Stage-1 Earn-In requirements to reach an initial
30% interest in the Briggs, Mannersley and Fig Tree Hill project in Queensland and committed to Stage-2 of
the Earn-In agreement, whereby it can reach a 51% project interest by sole-funding a further A$3 million of
assessment activity by 30 June 2026.
Climate change
The group’s exploration activities are assessed as having relatively low energy intensity and produce low
exposure to climate change risks related to the transition to a lower carbon economy.
Exploration activities may be carried out at sites that are vulnerable to physical climate impacts. Extreme
weather events have the potential to damage infrastructure and disrupt or delay field activities. The group is
adapting its site-specific operating plans to ensure that this risk factor is considered.
Environmental regulation
The Manager-Exploration reports to the Board on all significant safety, health and environmental incidents.
The Board also has a Risk Committee which has oversight of the safety, health and environmental
performance of the group.
The activities of the group are subject to environmental regulation under the jurisdiction of the countries in
which those activities are conducted, including Australia and Papua New Guinea. Each tenement is subject to
environmental regulation as part of its granting. Each site is also required to manage its environmental
obligations in accordance with group policies.
The group has internal reporting systems. Environmental incidents are reported and assessed according to
their environmental consequence and environmental authorities are notified where required and remedial
action is undertaken.
The Board believes that the group has adequate systems in place for the management of its environmental
requirements and is not aware of any breach of these environmental requirements as they apply to the group.
Remuneration of key management personnel
Information about the remuneration of key management personnel is set out in the remuneration report
section of this directors’ report. The term ‘key management personnel’ refers to those persons having authority
and responsibility for planning, directing and controlling the activities of the consolidated entity, directly or
indirectly, including any director (whether executive or otherwise) of the group.
Share options granted to directors and senior management
During the year, there were 2,500,000 options issued to the directors or senior management.
Remuneration report (audited)
This remuneration report for the year ended 30 June 2023 outlines the remuneration arrangement of the group
and the group in accordance with the requirements of the Corporations Act 2001 (the “Act”) and its
regulations. This information has been audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who
are defined as those persons having authority and responsibility for planning, directing and controlling the
major activities of the group and the group, directly or indirectly, including any director whether executive or
otherwise) of the parent company.
14
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Details of key management personnel
Directors
John Anderson
Grant Craighead
Ross Moller
Michael Erceg
Robyn Watts
Remuneration philosophy
Non-Executive Chairman
Managing Director
Non-Executive Director and Co-Company Secretary
Executive Director
Non-Executive Director
The objectives of the group’s remuneration framework are to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic
objectives and the creation of value for shareholders. The Board believes that executive remuneration
satisfies the following key criteria:
•
•
•
•
•
competitiveness and reasonableness
acceptability to shareholders
performance linkage/alignment of executive compensation
transparency
capital management.
These criteria result in a framework which can be used to provide a mix of fixed and variable remuneration,
and a blend of short and long-term incentives in line with the group’s limited financial resources.
Fees and payments to the group’s non-executive directors and senior executives reflect the demands which
are made on, and the responsibilities of, the directors and senior management. Such fees and payments are
reviewed annually by the Board. The group’s executive and non-executive directors, senior executives and
officers are entitled to receive options under the group’s employee share option scheme.
Relationship between the remuneration policy and company performance
The tables below set out summary information about the group’s earnings and movements in shareholder
wealth for the five years to June 2023. As the table indicates, earnings have varied significantly over the past
five financial years, due to the nature of activities. It has been the focus of the Board of Directors to attract and
retain management personnel essential to continue the group’s participation in mineral exploration projects.
Revenue
Net loss before tax
Net loss after tax
30 June
2023
$
—
(817,813)
(817,813)
30 June
2022
30 June
2021
30 June
2020
30 June
2019
$
—
(1,795,267)
(1,795,267)
$
—
(1,311,928)
(1,311,928)
$
6,004
(1,285,601)
(1,285,601)
$
36,398
(1,015,172)
(1,015,172)
Share price at end of year ($)
0.022
0.043
0.092
0.13
0.29
Basic and diluted
share (cents per share)
loss per
(0.0060)
(0.0149)
(0.0122)
(0.0153)
(0.0150)
15
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Remuneration of directors is set by reference to payments made by other companies of similar size and
industry, and by reference to the skills and experience of directors. Fees paid to Non-Executive Directors are
not linked to the performance of the group. This policy may change once the exploration phase is complete
and the group is generating revenue. At present the existing remuneration policy is not impacted by the
group’s performance including earnings and changes in shareholder wealth (e.g. changes in share price) with
the exception of incentive options issued to directors, subject to shareholder approval.
Remuneration of key management personnel
2023
Directors
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
2022
Directors
J E D Anderson
GA Craighead
R Watts
M Erceg
R E Moller
Short-term
employee benefits
Post-
employment
benefits
Share-based
payments
Salary and
directors’ fees
$
65,000
67,873
271,493
226,244
58,824
689,434
Consulting
fees
$
20,280
—
—
—
—
20,280
Superannuation
$
Options
$
—
7,127
28,507
23,756
6,176
65,566
7,307
7,307
7,307
7,307
7,307
36,535
Total
$
92,587
82,307
307,307
257,307
72,307
811,815
Short-term
employee benefits
Post-
employment
benefits
Share-based
payments
Salary and
directors’ fees
$
68,181
272,728
59,091
227,274
65,000
692,274
Consulting
fees
$
—
—
—
—
22,260
22,260
Superannuation
$
6,818
27,272
5,909
22,726
—
62,725
Options
$
17,800
17,799
17,799
17,799
17,799
88,996
Total
$
92,799
317,799
82,799
267,799
105,059
866,255
No performance-based remuneration was paid in 2023 (2022: nil).
The performance and remuneration of directors and senior executives is reviewed annually.
Non-executive director remuneration arrangements
Directors are entitled to remuneration out of the funds of the company, but the remuneration of the non-
executive directors (“NED”) may not exceed in any year the amount fixed by the company in general meeting
for that purpose. The aggregate remuneration of the NEDs has been fixed at a maximum of $250,000 per
annum to be apportioned among the NEDs in such a manner as the Board determines. Directors are also
entitled to be paid reasonable travelling, accommodation and other expenses incurred in consequence of their
attendance at Board meetings and otherwise in the execution of their duties as directors.
For the year to 30 June 2023, the Chairman’s fee was set at $75,000 per annum and NED fees at $65,000 per
annum, inclusive of superannuation where applicable.
16
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in employment
contracts and are set out below.
For the year to 30 June 2023, the Managing Director’s remuneration was set at $300,000 per annum inclusive
of superannuation, (June 2022: $300,000 per annum inclusive of superannuation). There were no termination
payments. For the year to 30 June 2023, the Executive Director’s remuneration was set at $250,000 for the
year inclusive of superannuation. There were no termination payments. NED fees were $205,000 for the year,
inclusive of superannuation where applicable.
Transactions with associates of directors
There were no transactions with associates of directors.
Number of shares held by key management personnel
The number of shares in the company held during the financial year by each director and other members of
key management personnel of the group, is set out below:
No of shares
Director
Ordinary shares
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
Balance at
the beginning
of the year
Received as
part of
remuneration
Additions
Disposals
2,372,500
5,895,023
8,964,534
965,000
50,000
18,247,057
—
—
—
—
—
—
232,000
800,000
1,333,165
417,250
125,000
2,907,415
—
—
—
—
—
—
Balance at
the end of
the year
2,604,500
6,695,023
10,297,699
1,382,250
175,000
21,154,472
Employee share option plan
The group operates an employee share option plan for employees and contractors of the group. In
accordance with the provisions of the plan, employees may be granted options to purchase parcels of ordinary
shares at specified exercise prices.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid
or payable by the recipient on receipt of the option. The option carries neither rights to dividends nor voting
rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
The options granted expire on their expiry date, or one month after the resignation of the employee, whichever
is the earlier.
17
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Employee share option plan (cont’d)
Terms and conditions of share-based payment arrangements affecting remuneration of key management
personnel in the current financial year or future financial years:
Options
Series
CBY09
CBY10
Grant date
Exercise Price Expiry date
Vesting date
10/09/2021
25/07/2022
$0.20
$0.06
30/06/2024
30/06/2025
10/09/2021
27/07/2022
There has been no alteration of the terms and conditions of the above share-based payment arrangements since
the grant date.
Details of share-based payments granted as compensation to key management personnel during the current
financial year:
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
Option series No. granted No. vested
% of grant
vested
% of grant
forfeited
During the financial year
CBY10
CBY10
CBY10
CBY10
CBY10
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
100
100
100
100
100
-
-
-
-
-
During the year, the following key management personnel exercised options that were granted to them as part
of their compensation. Each option converts into one ordinary share of Canterbury Resources Limited.
No. of options
exercised
No. of
ordinary
shares of the
company
Amount
paid
Amount
unpaid
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
-
-
500,000
-
-
-
-
500,000
-
-
-
-
30,000
-
-
-
-
-
-
-
18
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
The following table summarises the value of options granted and exercised during the financial year, in
relation to options granted to key management personnel as part of their remuneration:
Employee share option plan (cont’d)
Value of options granted
at the grant date (i)
Value of options exercised
at the exercise date
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
7,307
7,307
7,307
7,307
7,307
-
-
7,307
-
-
(i) The value of options granted during the financial year is calculated as at the grant date using a Black-
Scholes model. This grant date value is allocated to remuneration of key management personnel on a
straight-line basis over the period from grant date to vesting date.
This concludes the remuneration report, which has been audited.
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.
Future developments
Disclosure of information regarding likely developments in the operations of the group in future financial years
and the expected results of those operations is likely to result in unreasonable prejudice to the group.
Accordingly, this information has not been disclosed in this report.
Indemnification of officers and auditors
During the financial year, the company paid a premium in respect of a contract insuring the directors of the
group, the group secretary, and all executive officers of the group and of any related body corporate against a
liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
The group has not otherwise, during or since the end of the financial year, except to the extent permitted by
law, indemnified or agreed to indemnify an officer or auditor of the group or of any related body corporate
against a liability incurred as such by an officer or auditor.
Non-audit services
The group’s auditor, BDJ Partners did not provide non-audit services to the group during the year ended
30 June 2023 (2022: Nil).
19
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Auditor’s independence declaration
The auditor’s independence declaration is included after this report.
This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the
Corporations Act 2001.
On behalf of the Directors
Director: ...............................................................
Grant Craighead
Dated: 29 September 2023
20
Auditor's Independence Declaration
To the directors of Canterbury Resources Limited
As engagement partner for the audit of Canterbury Resources Limited for the year ended 30
June 2023, I declare that, to the best of my knowledge and belief, there have been:
i)
no contraventions of the independence requirements of the Corporations Act 2001 in
relation to the audit; and
ii) no contraventions of any applicable code of professional conduct in relation to the
audit.
BDJ Partners
…………………………………………………
Gregory Cliffe
Partner
26 September 2023
Phone
+61 2 9956 8500
Email
bdj@bdj.com.au
Office
Level 8, 124
Walker Street
North Sydney
NSW 2060
Postal
PO Box 1664,
North Sydney
NSW 2059
Liability limited by a
scheme approved
under Professional
Standards Legislation.
Please refer to the
website for our
standard terms of
engagement.
21
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2023
Revenue
Other income
Other (losses)/gains
Administrative expenses
Employee benefits expense
Corporate costs
Consultancy
Depreciation and amortisation expense
Impairment of capitalised expenditure
Marketing expense
Insurance
Share-based payment expense
Finance costs
Other expense
Loss before tax
Income tax benefit
Loss for the year
Attributable to:
Owners of the company
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Total comprehensive loss attributable to:
Owners of the company
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Note
3(a)
3(b)
4
4
4
4
5
6
6
2023
$
—
351,556
18,250
(79,835)
(616,266)
(279,926)
(22,297)
(25,957)
2022
$
—
239,713
(84,574)
(94,756)
(661,063)
(300,755)
(35,131)
(28,133)
—
(601,688)
(17,100)
(46,693)
(43,844)
(1,484)
(54,217)
(817,813)
—
(817,813)
(48,770)
(32,799)
(88,996)
(2,635)
(55,680)
(1,795,267)
—
(1,795,267)
(817,813)
(1,795,267)
—
—
(817,813)
(1,795,267)
(817,813)
(1,795,267)
(0.0060)
(0.0060)
(0.0149)
(0.0149)
The accompanying notes form part of these financial statements.
22
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of financial position
as at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Capitalised exploration and development expenditure
Other assets
Financial assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Total current liabilities
Non-current liabilities
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
22(a)
7
8
9
10
11
8
12
13
14
15
14
15
16
17
18
2023
$
2022
$
294,448
164,489
22,246
481,183
19,496
13,036
11,040,109
11,942
29,058
11,113,641
362,795
6,846
19,380
389,021
25,900
32,589
10,933,112
11,942
83,808
11,087,351
11,594,824
11,476,372
149,398
88,077
13,891
251,366
27,537
—
27,537
125,828
65,734
19,824
211,386
19,325
13,891
33,216
278,903
244,602
11,315,921
11,231,770
18,286,750
132,840
(7,103,669)
17,428,630
146,718
(6,343,578)
11,315,921
11,231,770
The accompanying notes form part of these financial statements.
23
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of changes in equity
for the year ended 30 June 2023
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total
$
Balance at 1 July 2021
Loss for the year
Foreign currency translation
Total comprehensive loss for the year
Transactions with owners of the company:
Shares issued during the year (net of
share issue costs)
Options issued during the year
Options expired during the year
Balance at 30 June 2022
16,158,630
—
—
—
1,270,000
—
—
17,428,630
164,477
—
—
—
(4,655,066)
(1,795,267)
—
(1,795,267)
11,668,041
(1,795,267)
—
(1,795,267)
—
—
1,270,000
88,996
(106,755)
146,718
—
106,755
(6,343,578)
88,996
—
11,231,770
Balance at 1 July 2022
Loss for the year
Foreign currency translation
Total comprehensive loss for the year
Transactions with owners of the company:
Shares issued during the year (net of
share issue costs)
Options issued during the year
Options expired during the year
Balance at 30 June 2023
17,428,630
—
—
—
146,718
—
—
—
(6,343,578)
(817,813)
—
(817,813)
11,231,770
(817,813)
—
(817,813)
858,120
—
—
858,120
—
—
18,286,750
43,844
(57,722)
132,840
—
57,722
(7,103,669)
43,844
—
11,315,921
The accompanying notes form part of these financial statements.
24
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of cash flows
for the year ended 30 June 2023
Cash flows from operating activities
Other receipts
Payments to suppliers and employees
Note
2023
$
2022
$
273,556
(1,144,718)
248,126
(1,180,472)
Net cash used in operating activities
22(b)
(871,162)
(932,346)
Cash flows from investing activities
Proceed from sale of shares in investments
Payments for exploration and development expenditure
Proceeds from sale of subsidiary
Payment for property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares (net of costs)
Repayment of lease liabilities
Interest paid - leases
Net cash generated by financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
73,000
(106,997)
—
—
(33,997)
858,120
(19,824)
(1,484)
836,812
(68,347)
362,795
Cash and cash equivalents at the end of the year
22(a)
294,448
—
(267,731)
45,872
(7,260)
(229,119)
1,000,000
(18,673)
(2,635)
978,692
(182,773)
545,568
362,795
The accompanying notes form part of these financial statements.
25
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
1. General information
Canterbury Resources Limited (“the company”) is a public company incorporated in Australia.
The address of its registered office and principal place of business is as follows:
Suite 301
55 Miller Street
Pyrmont NSW 2009
The principal activity of the group is participation in mineral exploration projects, with tenements currently held
in Queensland and Papua New Guinea. The group primarily targets prospects with potential to host large
scale copper and/or gold deposits.
These consolidated financial statements and notes represent the company and its controlled entities (“the
group”).
2. Significant accounting policies
Statement of compliance
The financial statements are general purpose financial statements which have been prepared in accordance
with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other
requirements of the law. Accounting Standards include Australian Accounting Standards (‘AAS’). Compliance
with AAS ensures that the financial statements and notes of the group comply with International Financial
Reporting Standards (‘IFRS’).
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.
The financial statements were authorised for issue by the directors on 28 September 2023.
Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for certain
non-current assets and financial instruments that are measured at revalued amounts or fair values, as
explained in the accounting policies below. Historical cost is generally based on the fair values of the
consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise
noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability,
the group considers the characteristics of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these consolidated financial statements is determined on such a
basis, except for share-based payment transactions that are within the scope of AASB 2 ‘Share-based
payments’, leasing transactions that are within the scope of AASB 16 ‘Leases’, and measurements that have
some similarities to fair value but are not fair value, such as value in use in AASB 136 ‘Impairment of Assets’.
26
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
Basis of preparation (cont’d)
Rounding off of amounts
The group is of the kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports)
Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument amounts in
the consolidated financial statements are rounded off to the nearest dollar unless otherwise indicated.
The principal accounting policies are set out below.
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and the entities
controlled by the company (its subsidiaries) up to 30 June each year. Control is achieved when the company:
•
•
•
has the power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affects its returns.
The company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
When the company has less than a majority of the voting rights of an investee, it considers that it has power
over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally. The company considers all relevant facts and circumstances in assessing
whether or not the company’s voting rights in an investee are sufficient to give it power, including:
•
•
•
•
the size of the company’s holding of voting rights relative to the size and dispersion of holdings of the
other vote holders;
potential voting rights held by the company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the company obtains control over the subsidiary and ceases when
the company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of
during the year are included in profit or loss from the date the company gains control until the date when the
company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the
company. Total comprehensive income of the subsidiaries is also attributed to the owners of the company.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used into line with the group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
the members of the group are eliminated on consolidation.
27
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(b) Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value which is calculated as the sum of the acquisition-date fair
values of assets transferred by the group, liabilities incurred by the group to the former owners of the acquiree
and the equity instruments issued by the group in exchange for control of the acquiree. Acquisition-related
costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair
value, except that:
•
•
•
deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119 ‘Employee
Benefits’ respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with AASB 2 ‘Share-based Payment’ at the
acquisition date; and
assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 ‘Non-current
Assets Held for Sale and Discontinued Operations’ are measured in accordance with that Standard.
Where the consideration transferred by the group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
(c) Revenue recognition
Revenue is measured based on the consideration to which the group expects to be entitled in a contract with
a customer and excludes amounts collected on behalf of third parties. The group recognises revenue when it
transfers control of a service to a customer.
Support services
The group recognises operating revenue from the provision of support services. Such services are recognised
as a performance obligation satisfied at a point in time.
(d) Leases
The group as lessee
The group assesses whether a contract is or contains a lease, at inception of the contract. The group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in
which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the group recognises the lease payments as an operating
expense on a straight-line basis over the term of the lease unless another systematic basis is more
representative of the time pattern in which economic benefits from the leased assets are consume
28
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(d) Leases (cont'd)
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the rate implicit in the lease. If this rate cannot be readily determined,
the group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
•
•
•
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
The amount expected to be payable by the lessee under residual value guarantees.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments
made. The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-
use asset) whenever:
•
•
•
The lease term has changed or there is a significant event or change in circumstances resulting in a
change in the assessment of exercise of a purchase option, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate or a change in expected payment
under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the
revised lease payments using an unchanged discount rate (unless the lease payments change is due
to a change in a floating interest rate, in which case a revised discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate lease, in
which case the lease liability is remeasured based on the lease term of the modified lease by
discounting the revised lease payments using a revised discount rate at the effective date of the
modification.
The group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments
made at or before the commencement day, less any lease incentives received and any initial direct costs.
They are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever
the group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is
located or restore the underlying asset to the condition required by the terms and conditions of the lease, a
provision is recognised and measured under AASB 137. To the extent that the costs relate to a right-of-use
asset, the costs are included in the related right-of-use asset.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that
the group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful
life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use
assets are presented as a separate line in the consolidated statement of financial position. The group applies
AASB 136 to determine whether a right-of-use asset is impaired and accounts for any identified impairment
loss as described in the ‘Property, plant and equipment’ policy (as outlined in the financial report for the annual
reporting period.
29
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(d) Leases (cont’d)
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability
and the right-of-use asset. The related payments are recognised as an expense in the period in which the
event or condition that triggers those payments occurs and are included in the line “Other expenses” in profit
or loss.
As a practical expedient, AASB 16 permits a lessee not to separate non-lease components, and instead
account for any lease and associated non-lease components as a single arrangement.
The group has not used this practical expedient. For contracts that contain a lease component and one or
more additional lease or non-lease components, the group allocates the consideration in the contract to each
lease component on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
(e) Taxation
The company is part of a tax-consolidated group under Australian taxation law, of which Canterbury
Resources Limited is the head entity. As a result, Canterbury Resources Limited is subject to income tax
through its membership of the tax-consolidated group. The consolidated current and deferred tax amounts for
the tax-consolidated group are allocated to the members of the tax-consolidated group using the ‘separate
taxpayer within group’ approach, with deferred taxes being allocated by reference to the carrying amounts in
the financial statements of each member entity and the tax values applying under tax consolidation. Current
tax liabilities and assets and deferred tax assets arising from unused tax losses and relevant tax credits
arising from this allocation process are then accounted for as immediately assumed by the head entity, as
under Australian taxation law the head entity has the legal obligation (or right) to these amounts.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as
reported in the consolidated statement of profit or loss and other comprehensive income because of items of
income or expense that are taxable or deductible in other years and items that are never taxable or deductible.
The group‘s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the consolidated financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the
temporary difference arises from the initial recognition of goodwill.
30
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(e) Taxation (cont’d)
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, except where the group is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with such investments and interests are only recognised to
the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of
the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the group expects, at the end
of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority
and the group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case the current and deferred tax are also
recognised in other comprehensive income or directly in equity, respectively. Where current tax or deferred tax
arises from the initial accounting for a business combination, the tax effect is included in the accounting for the
business combination.
(f) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less which are convertible to a known amount of
cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the statement of financial position.
(g) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment
losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their
useful lives, using the diminishing value method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.
Depreciation is calculated on a diminishing value basis so as to write off the cost or revalued amount of each
fixed asset over its estimated useful life, as follows to its estimated residual value.
31
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(g) Property, plant and equipment (cont'd)
Class of property, plant and equipment
Plant and equipment
Website development costs
Computer hardware
Motor vehicles
Right of use assets
Depreciation rate
15%
25%
33.33%
25%
Useful life or shorter of lease term
Depreciation rates and methods shall be reviewed at least annually and, where changed, shall be accounted
for as a change in accounting estimate. Where depreciation rates or methods are changed, the net written
down value of the asset is depreciated from the date of the change in accordance with the new depreciation
rate or method. Depreciation recognised in prior financial years shall not be changed, that is, the change in
depreciation rate or method shall be accounted for on a ‘prospective’ basis.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in profit or loss.
(h) Exploration and development expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable
area of interest. These costs are only capitalised to the extent that they are expected to be recovered through
the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area.
Costs of site restoration are provided for over the life of the project from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws
and regulations and clauses of the permits. Such costs have been determined using estimates of future costs,
current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legalisation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
32
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(i) Impairment of assets (excluding goodwill)
At the end of each reporting period, the group reviews the carrying amounts of its tangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the group
estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable
and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-
generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a
reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
(j) Goodwill
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non‑controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in
the acquiree (if any) over the net of the acquisition‑date amounts of the identifiable assets acquired and the
liabilities assumed.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment
testing, goodwill is allocated to each of the group’s cash‑generating units (or groups of cash‑generating units)
expected to benefit from the synergies of the combination. Cash‑generating units to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the unit may
be impaired. If the recoverable amount of the cash‑generating unit is less than the carrying amount of the unit,
the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and
then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
An impairment loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of
the profit or loss on disposal.
33
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(k) Financial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual
provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognised immediately in profit or loss.
Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets
within the time frame established by regulation or convention in the marketplace. All recognised financial
assets are measured subsequently in their entirety at either amortised cost.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
•
•
the financial asset is held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
The group’s financial assets at amortised cost includes trade receivables.
Amortised cost and effective interest method
For financial assets other than purchased or originated credit‑impaired financial assets (i.e. assets that are
credit‑impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the
expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of
the debt instrument on initial recognition. For purchased or originated credit‑impaired financial assets,
a credit‑adjusted effective interest rate is calculated by discounting the estimated future cash flows, including
expected credit losses, to the amortised cost of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus the cumulative amortisation using the effective interest
method of any difference between that initial amount and the maturity amount, adjusted for any loss
allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before
adjusting for any loss allowance.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period.
Impairment of financial assets
The group recognises a loss allowance for expected credit losses on trade receivables. The amount of
expected credit losses is updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
34
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(k) Financial instruments (cont'd)
Financial assets (cont'd)
The group always recognises lifetime expected credit losses (ECL) for trade receivables. The expected credit
losses on these financial assets are estimated using a provision matrix based on the group’s historical credit
loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as the forecast direction of conditions at the reporting date, including
time value of money where appropriate.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the
expected life of a financial instrument.
Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e.
the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability
of default and loss given default is based on historical data adjusted by forward-looking information as
described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross
carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount
drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the
future by default date determined based on historical trend, the entity’s understanding of the specific future
financing needs of the debtors, and other relevant forward-looking information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows
that are due to the group in accordance with the contract and all the cash flows that the group expects to
receive, discounted at the original effective interest rate.
If the group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in
the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL
are no longer met, the entity measures the loss allowance at an amount equal to 12-month ECL at the current
reporting date, except for assets for which simplified approach was used.
The group recognises an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account.
Derecognition of financial assets
The entity derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the entity neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the entity recognises its retained interest in the asset
and an associated liability for amounts it may have to pay. If the entity retains substantially all the risks and
rewards of ownership of a transferred financial asset, the entity continues to recognise the financial asset and
also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.
35
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(k) Financial instruments (cont’d)
Financial liabilities
Financial liabilities, including trade and other payables, are initially measured at fair value, net of transaction
costs.
All financial liabilities are measured subsequently at amortised cost using the effective interest method.
Derecognition
The group derecognises financial liabilities when, and only when, the group’s obligations are discharged,
cancelled or they expire. The difference between the carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised in profit or loss.
(l) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of
the cost of acquisition of an asset or as part of an item of expense; or
ii. for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified within operating cash flows.
(m) Foreign currencies
For the purpose of the consolidated financial statements, the results and financial position of the group are
expressed in Australian dollars (‘$’), which is the functional currency of the company and the presentation
currency for the consolidated financial statements.
In preparing the consolidated financial statements, transactions in currencies other than the group’s functional
currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non monetary items carried at fair value that are denominated
in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
For the purpose of presenting these consolidated financial statements, the assets and liabilities of the group’s
foreign operations are translated into Australian dollars using exchange rates prevailing at the end of the
reporting period. Income and expense items are translated at the average exchange rates for the period,
unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the
dates of the transactions are used. Exchange differences arising, if any, are recognised in other
comprehensive income and accumulated in equity.
36
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(n) Provisions
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be
made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
(o) Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of
the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the
estimated future cash outflows expected to be made by the Group in respect of services provided by
employees up to the reporting date.
(p) Critical accounting judgments and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.
The 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 if the revision affects only that period or
in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
Useful lives of property, plant and equipment
As described in (g) above, the group reviews the estimated useful lives of property, plant and equipment at the
end of each reporting period.
37
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(p) Critical accounting judgments and key sources of estimation uncertainty (cont'd)
Key sources of estimation uncertainty(cont'd)
Impairment testing
Goodwill is evaluated for impairment annually or whenever certain triggering events or circumstances, that
would more likely than not reduce the fair value of a reporting unit below its carrying amount, are identified.
Events or circumstances that might indicate an interim evaluation is warranted include, among other things,
unexpected adverse business conditions, macro and reporting unit specific economic factors (for example,
interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated
competitive activities, and acts by governments and courts.
Capitalised exploration and development expenditure
Exploration, evaluation and development expenditures incurred are only capitalised to the extent that they are
expected to be recovered through the successful development of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
capitalise costs in relation to that area.
Deferred tax assets
Deferred tax assets are recognised for deductible temporary differences as it is probable that future taxable
amounts will be available to utilise those temporary differences. Further, the company has determined that it is
not probable that it will derive sufficient taxable income in the near future to recover the tax losses and as a
result they have not been recognised as deferred tax assets in the 2023 financial period.
Provision for rehabilitation
Costs of site restoration have been determined using estimates of future costs, current legal requirements and
technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legalisation.
(q) Share-based payments
Employee share option plan
The group operates an employee share option for employees and contractors of the group. In accordance with
the provisions of the plan, employees may be granted options to purchase parcels of ordinary shares at
specified exercise prices.
Equity-settled share-based payments to employees and others providing similar services are measured at the
fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market-based
vesting conditions.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the group’s estimate of the number of equity instruments
that will eventually vest. At each reporting date, the group revises its estimate of the number of equity
instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of
the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense
reflects the revised estimate, with a corresponding adjustment to reserves.
38
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(q) Share-based payments (cont'd)
Equity-settled share-based payment transactions with parties other than employees are measured at the fair
value of the goods or services received, except where that fair value cannot be estimated reliably, in which
case they are measured at the fair value of the equity instruments granted, measured at the date the entity
obtains the goods or the counterparty renders the service.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid
or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting
rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
(r) Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control.
When a group entity undertakes its activities under joint operations, the group as a joint operator recognises in
relation to its interest in a joint operation:
• its assets, including its share of any assets held jointly;
• its liabilities, including its share of any liabilities incurred jointly;
• its revenue from the sale of its share of the output arising from the joint operation;
• its share of the revenue from the sale of the output by the joint operation; and
• its expenses, including its share of any expenses incurred jointly.
The group accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation
in accordance with the IFRS Standards applicable to the particular assets, liabilities, revenue and expenses.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale
or contribution of assets), the group is considered to be conducting the transaction with the other parties to the
joint operation, and gains and losses resulting from the transactions are recognised in the group’s
consolidated financial statements only to the extent of other parties’ interests in the joint operation.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a
purchase of assets), the group does not recognise its share of the gains and losses until it resells those assets
to a third party.
(s) Going concern
The consolidated net loss of the group, after tax was $817,813 for the year ended 30 June 2023 (2022: loss
$1,795,267), with cash outflows from operating activities of $871,162 (2022: cash outflow $932,346); and a
working capital surplus of $229,817 (2022: working capital surplus of $177,635).
The directors believe the group is a going concern. This financial report has been prepared on the going
concern basis, which assumes continuity of normal business activities and the realisation of assets and the
settlement of liabilities in the ordinary course of business.
The directors are aware of the fact that future development and administration activities are constrained by
available cash assets and believe future identified cash flows are sufficient to fund the short-term working
capital and forecasted exploration requirements of the group.
39
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(s) Going concern (cont'd)
During the next twelve months there is substantial exploration activity planned to advance the company’s
tenement assets, and the directors note that will be largely funded by project funding partners. Furthermore,
The Company expects to generate fee income in relation to the management of some of these planned
activities, that will further assist in funding the company’s operations.
The directors have a high level of confidence in the group's ability to successfully complete capital raising
initiatives as and when required. This is supported by the group's strong track record in successfully raising
capital.
The directors have reached the conclusion that based on all available facts and information currently
available, there are reasonable grounds to believe that the group will be able to pay its debts as an when they
become due and payable and is a going concern.
The group has a cash balance of approximately $280,000 as of the date of this report to meet its expenses
over the next twelve months.
(t) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM). The Managing Director has been identified as the CODM.
The board has appointed a strategic steering committee that assesses the financial performance and position
of the group and makes strategic decisions. The steering committee, which is led by the CODM (Chief
Operating Decision Maker), consists of the Managing Director as well as the remainder of the executive
committee consisting of the lead decision maker in each region.
(u) Adoption of new and revised Accounting Standards
Amendments to Accounting Standards that are mandatorily effective for the current year
In the current year, the group has adopted all of the new and revised Standards and interpretations issued by
the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the
current annual reporting period. Except as described below, there has been no material impact of these
changes on the group's accounting policies.
Other pronouncements adopted for the first time in the current period
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments
The amendments makes changes to the following standards
• AASB 3 Business combinations,
• AASB 9 Financial Instruments,
• AASB 116 Property, Plant and Equipment and;
• AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
The adoption of these standards has not had a material impact on the financial position or financial
performance of the company.
40
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Significant accounting policies (cont’d)
(u) Adoption of new and revised Accounting Standards (cont’d)
Standards and Interpretations in issue not yet effective
At the date of authorisation of the financial statements, the Standards and Interpretations that were issued but
not yet effective are listed below:
Standard/Interpretation
AASB 2020-1 Amendments to Australian Accounting
Standards - Classification of Liabilities as Current or Non-
current and AASB 2020-6 Amendments to Australian
Accounting Standards - Classification of Liabilities as
Current or Non-current - Deferral of Effective Date
AASB 2021-2 Amendments to Australian Accounting
Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2021-5 Amendments to Australian Accounting
Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
Effective for annual
reporting periods
beginning on or after
Expected to be
initially applied in the
financial year ending
1 January 2023
31 December 2023
1 January 2023
31 December 2023
1 January 2023
31 December 2023
Pronouncements issued by the IASB or IFRS Interpretations Committee where an equivalent
pronouncement has not been issued by the AASB
The table below outlines pronouncements made by the IASB or IFRS Interpretations Committee, where an
equivalent pronouncement has not yet been made by the AASB at the date of this publication but is expected
to be issued in due course.
Standard/Interpretation
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction - Amendments to IAS 12
Effective for annual
reporting periods
beginning on or after
1 July 2023
Expected to be
initially applied in the
financial year ending
30 June 2024
41
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
3. Revenue and other income
(a) Revenue
(b) Other income
Expense reimbursement
Sundry income
Management fee
4. Loss for the year
Loss for the year has been arrived at after (charging)/crediting the
following items of income and expense
Other (losses)/gains:
Gain on sale of shares
Revaluation of investment
Net unrealised foreign exchange (loss)/gain
Employee benefit expense:
Wages and salaries
Annual leave expense
Long service leave expense
Post-employment benefits expense
Depreciation expense:
Depreciation expense - property, plant and equipment
Depreciation expense - right-of-use assets
Finance costs:
Interest - lease liabilities
2023
$
2022
$
—
—
136,673
100,000
114,883
351,556
2023
$
23,725
(5,475)
—
18,250
(518,018)
(22,342)
(8,211)
(67,695)
(616,266)
(6,404)
(19,553)
(25,957)
(1,484)
(1,484)
239,713
—
—
239,713
2022
$
—
(83,712)
(862)
(84,574)
(553,717)
(30,961)
(8,286)
(68,099)
(661,063)
(8,580)
(19,553)
(28,133)
(2,635)
(2,635)
42
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
5. Income tax
Income tax benefit
Tax benefit comprises of:
Current tax benefit
Deferred tax benefit
2023
$
2022
$
—
—
—
—
—
—
The prima facie income tax expense in the consolidated statement of
profit or loss and other comprehensive income is as follows:
Loss before income tax from continuing operations
(817,813)
(1,795,267)
Income tax benefit calculated at 25.0% (2022: 25.0%)
Effect of unrecognised and unused tax losses and deductible temporary
differences
Income tax benefit attributed to loss
(204,453)
204,453
(448,817)
448,817
—
—
The income tax benefit attributable to the loss is not recognised as the group considers it is not 100%
probable that future taxable amounts will be available to utilise the losses.
Including the $204,453 of unrecognised tax losses in the current year, the group has a total of $13,443,080
of unrecognised tax losses which can potentially be used to offset future taxable income and/or profit.
6. Loss per share
Basic loss per share
From continuing operations
Diluted loss per share
From continuing operations
2023
$
2022
$
(0.0060)
(0.0149)
(0.0060)
(0.0149)
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted
loss per share are as follows:
Loss used in the calculation of basic and diluted loss per share
2023
$
(817,813)
2022
$
(1,795,267)
Weighted average number of ordinary shares for the purposes of basic
and diluted loss per share (a)
135,352,092
120,768,393
43
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
6. Loss per share (cont'd)
(a) During the year ended 30 June 2023 the potential ordinary shares associated with the employee share
option plan as set out in Note 2 are anti-dilutive and are therefore excluded from the weighted average
number of ordinary shares for the purposes of diluted earnings per share. The potential ordinary shares
associated with the Performance Rights, as set out in Note 17 are anti-dilutive, and have not been included
in the weighted average number of ordinary shares for the purposes of diluted earnings per share.
7. Trade and other receivables
Current
Other receivables
Goods and Services Tax receivables
8. Other assets
Current
Prepayments
Non-current
Rental security deposit (tenements)
9. Property, plant and equipment
2023
$
2022
$
164,489
—
164,489
2023
$
22,246
22,246
11,942
11,942
6,846
—
6,846
2022
$
19,380
19,380
11,942
11,942
Movement in the carrying amounts for each class of property, plant and equipment between the beginning
and the end of the current financial year:
Plant and
equipment
$
Website
development
$
Computer
hardware
$
Motor
vehicles
$
Total
$
2023
At Cost
Balance at 1 July 2022
Additions
Balance at 30 June 2023
Accumulated depreciation
Balance at 1 July 2022
Depreciation expense
Balance at 30 June 2023
4,700
—
4,700
(2,832)
(289)
(3,121)
15,000
—
15,000
(10,963)
(946)
(11,909)
12,922
—
12,922
(6,141)
(2,072)
(8,213)
30,560
—
30,560
63,182
—
63,182
(17,346)
(3,097)
(20,443)
(37,282)
(6,404)
(43,686)
Net book value 30 June 2023
1,579
3,091
4,709
10,117
19,496
44
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
9. Property, plant and equipment (cont'd)
2022
At Cost
Balance at 1 July 2021
Additions
Balance at 30 June 2022
Accumulated depreciation
Balance at 1 July 2021
Depreciation expense
Balance at 30 June 2022
Plant and
equipment
$
Website
development
$
Computer
hardware
$
Motor
vehicles
$
Total
$
4,700
—
4,700
(2,516)
(316)
(2,832)
15,000
—
5,662
7,260
30,560
—
15,000
12,922
30,560
55,922
7,260
63,182
(9,727)
(1,236)
(10,963)
(3,158)
(2,983)
(6,141)
(13,301)
(4,045)
(17,346)
(28,702)
(8,580)
(37,282)
Net book value 30 June 2022
1,868
4,037
6,781
13,214
25,900
10. Right-of-use assets
Cost
Accumulated depreciation
Balance at 30 June
11. Capitalised exploration and development expenditure
Non-current
Balance as at 1 July
Expenditures during the year
Impairment/write-offs
Balance as at 30 June
2023
$
2022
$
58,660
(45,624)
13,036
2023
$
58,660
(26,071)
32,589
2022
$
10,933,112
10,906,713
106,997
—
628,087
(601,688)
11,040,109
10,933,112
The recoverability of the exploration expenditure capitalised by the group during the year ending 30 June
2023, is dependent on successful development and commercial exploitation, or alternatively, on the sale of
the respective areas of interest.
During the current year, no impairment was recorded with respect to tenements (2022: impairment
$601,688).
45
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2023
$
2022
$
12. Financial assets
Investment in listed shares – fair value through profit or loss (FVTPL)
(a)
Balance as at 30 June
29,058
29,058
Movement in investment
Opening balance
Shares sold during the year
Revaluation loss
Closing balance
83,808
83,808
2023
$
83,808
(49,275)
(5,475)
29,058
(a) On 31 December 2021, the group acquired a 1.95% shareholding in New Talisman Gold Mines Limited,
an entity listed on the Australian Stock Exchange and the New Zealand Stock Exchange. This is an
investment arising out of the sale of Capella Vanuatu Limited.
Investments in listed shares are recorded at their purchase price at acquisition date and at balance date are
based on quoted bid prices or the transaction prices of similar investments. The fair value of the financial
assets are classified as fair value hierarchy Level 1 (fair value measurements that are derived from quoted
prices (unadjusted) in active markets for identical assets or liabilities) and was derived from quoted prices for
that financial instrument.
During the 2023 reporting period, the group sold a parcel of shares in New Talisman Gold Mines Limited and
had revalued the remaining shares to market value at 30 June 2023.
13. Trade and other payables
Current
Unsecured - at amortised cost
GST payable
Sundry payables and accrued expenses
2023
$
2022
$
357
149,041
149,398
5,716
120,112
125,828
(i) Trade payables are non-interest bearing and are normally settled on 30 days end of month terms.
46
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
14. Provisions
Current
Employee benefits
Non-current
Employee benefits
15. Lease liabilities
Current
Lease liabilities
Non-current
Lease liabilities
2023
$
2022
$
88,077
65,734
27,537
19,325
2023
$
2022
$
13,891
19,824
—
13,891
The total cash outflow for repayment of leases amount to $21,308. The operating lease relates to lease of the
company’s office space at Pyrmont, NSW, for a term of 36 months, with an expiry date of 27 January 2024.
2023
$
2022
$
16. Issued capital
144,523,530 fully paid ordinary shares (2022: 123,198,530)
18,286,750
17,428,630
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Movements in issued capital
2023
No of
shares
$
2022
No of
shares
$
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the year
123,198,530
21,325,000
17,428,630 111,865,197 16,158,630
1,270,000
11,333,333
858,120
144,523,530
18,286,750 123,198,530 17,428,630
During the period, the company issued the following additional shares:
10,825,000 shares at a value of $0.04 raising $433,000;
•
10,000,000 shares at a value of $0.04 raising $400,000;
•
500,000 options converted at $0.06 raising $30,000; and
•
Less share issue costs during the period amounting to $4,880.
•
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
47
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
17. Reserves
Share-based payments (i)
Opening balance
Options issued
Options expired
Closing balance
Foreign currency translation reserve
Opening balance
Foreign currency translation
Closing balance
2023
$
2022
$
146,718
43,844
(57,722)
132,840
—
—
—
164,477
88,996
(106,755)
146,718
—
—
—
Total reserves
132,840
146,718
(i) The share-based payments reserve records the value of options issued to directors, employees and
consultants as part of the remuneration for their services.
2023
$
2022
$
18. Accumulated losses
Balance at the beginning of the year
Options expired
Loss for the year
Balance at the end of the year
(6,343,578)
57,722
(817,813)
(7,103,669)
(4,655,066)
106,755
(1,795,267)
(6,343,578)
48
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
19. Acquisition of subsidiary
On 1 December 2021, the group acquired 100% of the share capital of Neillkins Mining Pty Ltd, which holds
EPM 27756 covering the Peenam Project in Queensland, located about 150km northwest of Brisbane. The
Peenam Project has potential for the discovery large-scale Cu-Au porphyry deposits. Consideration paid via
the issue of 3,000,000 shares at $0.09 per share.
2022
$
Share capital
Tenement deposit
Total identifiable assets acquired and liabilities assumed
Total consideration paid or payable
Less: net assets acquired (above)
Capitalised Exploration Assets
Satisfied by:
Equity instruments
Total consideration
20. Commitments for expenditure
3
500
503
270,000
503
269,497
270,000
270,000
2022
$
2023
$
Tenement expenditure (i)
2,577,500
2,100,000
(i) In order to maintain the group’s tenements in good standing with the relevant authorities, the group incurs
exploration expenditure under the terms of each licence. The indicative minimum exploration expenditure
requirement for FY24 is approximately $2,577,500, of which approximately $2,537,500 is covered by our
project funding partners. This is a pro rata estimate, based on annualised licence terms, converted to AUD at
current exchange rates.
21. Contingent liabilities and contingent assets
In the opinion of the directors, the group did not have any contingent liabilities or contingent assets at 30 June
2023 (2022: nil).
49
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
22. Cash and cash equivalents
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on
hand and in banks. Cash and cash equivalents at the end of the reporting period as shown in the
consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of
financial position as follows:
(a) Reconciliation of cash
Cash at bank
2023
$
2022
$
294,448
362,795
(b) Reconciliation of loss for the year to net cash flows from operating activities
Loss for the year
Depreciation expense
Gain on disposal of subsidiary
Revaluation of investment
Lease interest
Impairment of capitalised exploration expenditure
Share based payments
Commission (non-cash)
Movements in working capital
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade and other payables
Increase in provisions
Net cash flows from operating activities
23. Auditors' remuneration
Audit of the financial statements
Other auditors (subsidiary companies)
2023
$
(817,813)
25,957
(23,725)
5,475
1,484
43,844
—
(163,001)
(2,866)
28,928
30,555
(871,162)
2023
$
44,000
7,150
51,150
2022
$
(1,795,267)
28,133
83,712
2,635
601,688
88,996
18,613
15,629
(2,891)
(12,841)
39,247
(932,346)
2022
$
43,000
7,778
50,778
The auditor of Canterbury Resources Limited is BDJ Partners.
BDJ Partners did not provide non-audit services to the group during the year ended 30 June 2023 (2022: nil).
50
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
24. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in note 2:
Name of entity
Country of
incorporation
Ownership
interest
Canterbury Exploration Pty Ltd
Niellkins Mining Pty Ltd
Canterbury Resources (PNG) Ltd
Finny Limited
25. Parent entity information
Australia
Australia
Papua New Guinea
Papua New Guinea
2023
%
100
100
100
100
2022
%
100
100
100
100
The accounting policies of the parent entity, which have been applied in determining the financial information
shown below, are the same as those applied in the consolidated financial statements. Refer to note 2 for a
summary of the significant accounting policies relating to the group.
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Total comprehensive loss
2023
$
2022
$
290,822
12,287,590
12,578,412
373,800
12,140,360
12,514,160
267,453
27,537
294,990
200,809
33,216
234,025
18,286,750
132,840
(6,136,168)
12,283,422
17,428,631
146,718
(5,295,214)
12,280,135
(898,675)
(1,402,162)
Contingent liabilities
The parent entity had no contingent liabilities at 30 June 2023 (2022: nil).
Capital commitments - property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 (2022:
nil).
Guarantees
The parent entity has not entered into any guarantees, in the current or previous financial year, with respect to
the debts of its subsidiaries.
51
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
26. Key management personnel disclosures
Directors
The following persons were directors of the group during the financial year:
JED Anderson
GA Craighead
RE Moller
ME Erceg
R Watts
Key management personnel compensation
Remuneration of key management personnel
2023
Directors
JED Anderson
GA Craighead
R Watts
M Erceg
R E Moller
2022
Directors
J E D Anderson
GA Craighead
R Watts
M Erceg
R E Moller
Short-term
employee benefits
Salary and
directors' fees
$
Consulting
fees
$
67,873
271,493
58,824
226,244
65,000
689,434
—
—
—
—
20,280
20,280
Short-term
employee benefits
Salary and
directors' fees
$
Consulting
fees
$
68,181
272,728
59,091
227,274
65,000
692,274
—
—
—
—
22,260
22,260
Post-
employment
benefits
Share-based
payments
Superannuation Options
$
7,127
28,507
6,176
23,756
—
65,566
$
7,307
7,307
7,307
7,307
7,307
36,535
Post-
employment
benefits
Share-based
payments
Superannuation Options
$
6,818
27,272
5,909
22,726
—
62,725
$
17,800
17,799
17,799
17,799
17,799
88,996
Total
$
82,307
307,307
72,307
257,307
92,587
811,815
Total
$
92,799
317,799
82,799
267,799
105,059
866,255
No performance-based remuneration was paid in 2023 (2022: nil).
52
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
27. Related party transactions
(a) Parent entity
The parent entity within the group is Canterbury Resources Limited.
(b) Key management personnel
Disclosures relating to key management personnel are set out in note 26.
(c) Subsidiaries
Interests in subsidiaries are set out in note 24.
(d) Shared-based payments
Shared-based payments are set out in note 29.
28. Operating segments
Identification of two reportable operating segments
The Chief Operating Decision Maker (CODM) has restructured the reporting structures into 2 reportable
segments representing business operating segments for management, reporting and allocation of resources
purposes. Operating segments have been identified based on financial information that is regularly reviewed
by the CODM.
The group aggregates two or more operating segments into a single reportable operating segment when the
group has assessed and determined the aggregated operating segments share similar economic and
geographical characteristics.
The group has the following reportable segments:
● Papua New Guinea
● Australia
The performance of each segment forms the basis of all reporting to the CODM. The steering committee
primarily uses Earnings Before Interest and Tax (EBIT) to assess the performance of a segment. It will also
review the assets and working capital of each segment on a regular basis. The accounting policies adopted for
internal reporting to the CODM are consistent with those adopted in the financial statements.
In reporting the EBIT to the steering committee, results for the normal operations of the segment separately
show reporting of non-recurring events.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on
the same basis as the internal reports provided to the CODM. The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
53
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
28. Operating segments (cont’d)
2023
Revenue
Other revenue
Other (losses)/gains
Administration expense
Corporate costs
Depreciation and amortisation expense
Employee benefits expense
Share-based payment expense
Other expenses
EBIT
Finance expense
Loss before income tax
Income tax
Loss for the year
Assets
Segment assets (a)
Total assets
Liabilities
Segment liabilities
Total liabilities
(a) Segment assets
Papua New
Guinea
$
Australia
$
Total
$
—
87,220
—
(23,362)
(1,560)
—
—
—
(7,150)
55,148
—
55,148
—
55,148
—
264,336
18,250
(142,563)
(278,366)
(25,957)
(616,266)
(43,844)
(47,067)
(871,477)
(1,484)
(872,961)
—
(872,961)
—
351,556
18,250
(165,925)
(279,926)
(25,957)
(616,266)
(43,844)
(54,217)
(816,329)
(1,484)
(817,813)
—
(817,813)
8,858,911
8,858,911
2,759,042
2,759,042
11,617,953
11,617,953
—
—
302,032
302,032
302,032
302,032
Segment assets are measured in the same way as in the financial statements. These assets are allocated
based on the operations of the segment and the physical location of the asset.
Papua New
Guinea
$
Australia
$
Total
$
Segment assets
Additions to non-current assets
8,858,911
83,340
2,759,042
(57,050)
11,617,953
26,290
54
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
28. Operating segments (cont’d)
2022
Revenue
Other revenue
Administration expense
Corporate costs
Depreciation and amortisation expense
Employee benefits expense
Share-based payment expense
Other expenses
Impairment of capitalised expenditure
EBIT
Finance income
Finance expense
Loss before income tax
Income tax
Loss for the year
Assets
Segment assets (a)
Total assets
Liabilities
Segment liabilities
Total liabilities
(a) Segment assets
Papua New
Guinea
$
Australia
$
Total
$
—
7,000
(19,927)
(1,302)
—
—
—
(8,640)
(601,688)
—
232,713
(191,529)
(299,453)
(28,133)
(661,063)
(88,996)
(131,614)
—
—
239,713
(211,456)
(300,755)
(28,133)
(661,063)
(88,996)
(140,254)
(601,688)
(624,557)
(1,168,075)
(1,792,632)
—
—
—
(2,635)
—
(2,635)
(624,557)
(1,170,710)
(1,795,267)
—
—
—
(624,557)
(1,170,710)
(1,795,267)
8,301,039
8,301,039
3,175,333
3,175,333
11,476,372
11,476,372
7,089
7,089
237,513
237,513
244,602
244,602
Segment assets are measured in the same way as in the consolidated financial statements. These assets are
allocated based on the operations of the segment and the physical location of the asset.
55
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
Segment assets
Additions to non-current assets
29. Employee share option plan
Papua New
Guinea
$
Australia
$
Total
$
8,301,039
(296,752)
3,175,333
386,586
11,476,372
89,834
The group operates an employee share option plan for employees and contractors of the group. In
accordance with the provisions of the plan, employees may be granted options to purchase parcels of ordinary
shares at specified exercise prices.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid
or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting
rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
The options granted expire on their expiry date, or one month after the resignation of the employee, whichever
is earlier. Terms and conditions of share-based payment arrangements affecting remuneration of key
management personnel in the current financial year or future financial years:
Options series
CBY09
CBY10
Grant date
Exercise price
Expiry date
Vesting date
10/09/2021
25/07/2022
$0.20
$0.06
30/06/2024
30/06/2025
10/09/2021
27/07/2022
These options were valued based on the Black-Scholes option pricing model, the value of the options was
assessed using the annual volatility of returns on the shares over a period of time.
The table below summarises the total options movement for the year, including ESOP and non-ESOP:
Status*
At beginning of period
Granted during period
Exercised during the year
Forfeited during the period
At end of period
ESOP (unlisted)
3,050,000
3,000,000
(500,000)
(1,050,000)
4,500,000
Non-ESOP
(unlisted)
3,000,000
5,000,000
—
—
8,000,000
Total
6,050,000
8,000,000
(500,000)
(1,050,000)
12,500,000
*Irrespective of any restrictions applicable to those options under ASX requirements.
The options outstanding at 30 June 2023 had a weighted average exercise price of $0.06 and 0.20, and a
weighted average remaining contractual life of 2.93 years and 2.81 years respectively. In 2023, options were
granted on 25 July 2022. The aggregate of the estimated fair values of the options granted on this date is
$57,722. 500,000 options were exercised during the period at $0.06, raising $30,000.
The inputs into the Black-Scholes model are as follows:
56
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
Weighted average share price
Weighted average exercise price
Expected volatility
Expected life
Risk-free rate
2023
$
0.0440
0.06
61.31 %
2.93 years
2.66 %
2022
$
0.0445
0.20
88.76 %
2.81 years
0.019 %
Expected volatility was determined by calculating the historical volatility of the group’s share price over the
previous 1.5 years. The expected life used in the model has been adjusted, based on management’s best
estimate, for the effects of non-transferability, exercise restrictions, and behavioral considerations.
57
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
30. Financial instruments
Capital management
The group manages its capital to ensure that entities in the group will be able to continue as going concerns
while maximising the return to stakeholders through the optimisation of its equity balance.
In managing its capital, the group's primary objective is to ensure its continued ability to maintain its
operations and provide a platform to enable a return for its equity shareholders to be made when successful
commercial operations are achieved. In order to achieve this objective, the group seeks to maximise its fund
raising to provide sufficient funding to enable the group to meet its working capital and strategic investment
needs. In making decisions to adjust its capital structure to achieve these aims, either through new share
issues, or reduction of debt, the group considers not only its short-term position but also its long-term
operational and strategic objectives.
The group’s overall strategy remains unchanged from 2022.
The capital structure of the group consists of cash and bank balances (note 22) and equity of the group
(comprising issued capital, reserves and accumulated losses as detailed in notes 16 to 18).
The group is not subject to any externally imposed capital requirements.
(a) Market Risk
The group‘s activities expose it primarily to the financial risks of changes in interest rates and foreign currency.
There has been no change to the group‘s exposure to market risks or the manner in which these risks are
managed and measured.
(i) Interest rate risk management
The group‘s exposure to interest rate risk and the effective weighted average interest rate for classes of
financial assets and financial liabilities is set out below:
2023
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Total liabilities
Weighted
average
interest rate
%
Floating
interest
amount
$
Fixed
maturing in
1 yr to 5 yrs
$
Non-interest
bearing
$
Total
$
0.00
0.00
0.00
—
—
—
—
—
—
—
—
—
—
294,448
164,489
458,937
294,448
164,489
458,937
149,398
149,398
149,398
149,398
58
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
30. Financial instruments (cont’d)
Capital management (cont’d)
(a) Market Risk (cont'd)
2022
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Total liabilities
Sensitivity analysis
Weighted
average
interest rate
%
Floating
interest
amount
$
Fixed
maturing in
1 yr to 5 yrs
$
Non-interest
bearing
$
Total
$
0.00
0.00
0.00
—
—
—
—
—
—
—
—
—
—
362,795
6,846
369,641
362,795
6,846
369,641
125,828
125,828
125,828
125,828
The following sensitivity analysis is based on the interest rate risk exposure in existence at the balance sheet
date. The analysis assumes all other variables remain constant.
59
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2023
Carrying
amount
$
+0.5% interest
rate
profit & loss
$
-0.5% interest
rate
profit & loss
$
Cash at bank
Tax charge of 25.0%
Post tax profit increase/(decrease)
294,448
1,472
(368)
1,104
(1,472)
368
(1,104)
Carrying
amount
$
+0.5% interest
rate
profit & loss
$
-0.5% interest
rate
profit & loss
$
362,795
1,814
(454)
1,360
(1,814)
454
(1,360)
2022
Cash at bank
Tax charge of 25.0%
Post tax profit increase/(decrease)
30. Financial instruments (cont’d)
Capital management (cont’d)
(a) Market risk (cont’d)
(ii) Currency risk
The group's policy is, where possible, to allow group entities to settle liabilities denominated in their functional
currency with the cash generated from their own operations in that currency. Where group entities have
liabilities denominated in a currency other than their functional currency (and have insufficient reserves of that
currency to settle them) cash already denominated in that currency will, where possible, be transferred from
elsewhere within the group.
The group's exposure to foreign currency risk, which arises out of its investments in Papua New Guinea, is as
follows:
Cash at bank
Net exposure
Sensitivity analysis
2023
$
113,872
113,872
2022
$
8,375
8,375
60
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
2023
Cash at bank
Tax charge of 25.0%
Post tax profit increase/(decrease)
2022
Cash at bank
Tax charge of 25.0%
Post tax profit increase/(decrease)
Carrying
amount
AUD$
113,872
Carrying
amount
AUD$
8,375
+10%
KNA/AUD
profit & loss
AUD$
-10%
KNA/AUD
profit & loss
AUD$
11,387
(2,847)
8,540
(11,387)
2,847
(8,540)
+10%
KNA/AUD
profit & loss
AUD$
-10%
KNA/AUD
profit & loss
AUD$
838
(210)
628
(838)
210
(628)
61
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
30. Financial instruments (cont’d)
Capital management (cont’d)
(b) Credit risk
Credit risk arises principally from the group's trade and other receivables. It is the risk that the counterpart fails
to discharge its obligation in respect of the instrument. Ongoing credit evaluation is performed on the financial
condition of trade and other receivables. The group does not have significant concentration of credit risk with
respect to any single counter party or company of counter parties. The group applies the AASB 9 simplified
approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables.
In determining the recoverability of a trade receivable, the local management considers any change in the
credit quality of these financial assets from the date credit was granted up to the reporting date. The directors
have assessed for any expected credit losses under AASB 9 and believe that there is no further credit
provision required. Management does not expect any material loss from non-performance by counterparties
on credit granted during the financial year under review that has not been provided for.
(c) Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board, which has established an
appropriate liquidity risk management framework for the management of the group’s short medium and long-
term funding and liquidity management requirements. The group manages liquidity risk by maintaining a
reputable credit risk profile, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows.
The group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected
requirements for a period of at least 45 days. The Board receives cash flow projections in a monthly basis as
well as information regarding cash balances. At the balance sheet date, these projections indicated that the
group expected to have sufficient liquid resources to meet its obligations under all reasonably expected
circumstances. The group does not have any financing facilities in place and does not have a bank overdraft.
Maturity analysis of financial assets and liability based on contractual obligations
The risk implied from the values shown in the table below, reflects a balanced view of cash inflows and
outflows. Trade and other payables mainly originate from the financing of assets used in ongoing operations
such as, plant, equipment and investments in working capital (e.g. trade receivables). These assets are
considered in the group's overall liquidity risk.
Carrying
amount
$
Contractual cash flows
6-12
months
$
< 6
months
$
> 12
months
$
On
demand
$
2023
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Lease liabilities
Total liabilities
294,448
164,489
458,937
149,398
13,891
163,289
294,448
164,489
458,937
149,398
10,366
159,764
—
—
—
3,525
3,525
Net maturity
295,648
299,173
(3,525)
—
—
—
—
—
—
—
—
—
—
—
—
62
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
30. Financial instruments (cont’d)
Capital management (cont’d)
(c) Liquidity risk (cont’d)
2022
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Lease liabilities
Total liabilities
Carrying
amount
$
Contractual cash flows
6-12
months
$
< 6
months
$
> 12
months
$
362,795
6,846
369,641
125,828
33,715
159,543
362,795
6,846
369,641
125,828
9,912
135,740
—
—
—
—
—
—
9,912
9,912
13,891
13,891
Net maturity
210,098
233,901
(9,912)
(13,891)
On
demand
$
—
—
—
—
—
—
The directors consider that the carrying amounts of financial assets and financial liabilities recognised in the
consolidated financial statements approximate their fair values.
31. Fair value measurements
The investment in New Talisman Gold Mines Limited is measured at fair value (refer to Note 12).
Other than as noted above, there are no financial assets or financial liabilities that are measured at fair value
at the end of the reporting period.
There were no transfers between level 1,2, and 3 for recurring fair value measurements during the year.
The carrying amount of other financial assets or financial liabilities recorded in the consolidated financial
statements approximate their fair values.
32. Other information
In accordance with Listing Rule 4.10.19, the group has used the cash and assets in a form readily convertible
to cash that it had at the time of admission in a way consistent with its business objectives.
63
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2023
33. Events after the reporting period
Subsequent to year end the following events have arisen:
• On 24 July 2023, Syndicate Minerals exercised an option to enter into agreement (“Morobe Project
agreement”) whereby it has the conditional right to earn up to a 70% interest in Canterbury’s Papua New
Guinea mineral exploration projects in Morobe Province via funding of up to US$20 million of staged
exploration and assessment activities. The Morobe Project tenements comprise: EL2658 “Wamum”,
EL2782 (application) “Waits Creek”, EL2302 “Mt Leahy” and EL2314 “Mt Evina”. Syndicate Minerals paid
a signing fee of A$80,000.
• On 8 September 2023 Veronique Morgan-Smith resigned as Company Secretary and Joan Dabon was
appointed as Company Secretary.
• On 21 September 2023 Alma Metals Limited achieved the Stage-1 Earn-In requirements to reach an initial
30% interest in the Briggs, Mannersley and Fig Tree Hill project in Queensland and committed to Stage-2
of the Earn-In agreement, whereby it can reach a 51% project interest by sole-funding a further A$3
million of assessment activity by 30 June 2026.
Other than as noted above, there have been no other events subsequent to 30 June 2023 that are likely, in the
director’s opinion, to affect significantly the activities or the state of affairs of the group in future financial years.
64
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ declaration
The directors declare that:
(a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable;
(b) in the directors’ opinion, the attached financial statements are in compliance with International Financial
Reporting Standards, as stated in note 2 to the financial statements;
(c) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with Accounting Standards and giving a true and fair view of the
financial position and performance of the group, and
(d) the directors have been given the declarations required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act
2001.
On behalf of the Directors
Director …………………………………………………
Grant Craighead
Sydney, 29 September 2023
65
Independent Auditor’s Report
To the members of Canterbury Resources Limited,
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Canterbury Resources Limited (the
company and its subsidiaries) (“the Group”), which comprises the consolidated statements
of financial position as at 30 June 2023, the consolidated statements of profit or loss and
other comprehensive income, the consolidated statements of changes in equity and the
consolidated statements of cash flows for the year then ended, notes comprising a
summary of significant accounting policies and other explanatory information, and the
directors’ declaration.
In our opinion the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2023
and of its performance for the year ended on that date; and
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
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 (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.
further described
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.
Phone
+61 2 9956 8500
Email
bdj@bdj.com.au
Office
Level 8, 124
Walker Street
North Sydney
NSW 2060
Postal
PO Box 1664,
North Sydney
NSW 2059
Liability limited by a
scheme approved
under Professional
Standards Legislation.
Please refer to the
website for our
standard terms of
engagement.
66
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.
Key audit matter
How our audit addressed the key audit
matter
Capitalised Exploration and Development Expenditure
$11 million
Refer to Note 11
The consolidated entity owns the rights
to several exploration licenses in Papua
New Guinea and Queensland.
Expenditure relating to these areas is
capitalised and carried forward to the
extent they are expected to be recovered
through the successful development of
the respective area or where activities in
the area have not yet reached a stage
that permits reasonable assessment of
the existence of economically
recoverable reserves.
This area is a key audit matter due to:
•
•
•
The significance of the balance;
The inherent uncertainty of the
recoverability of the amounts
involved; and
The substantial amount of audit work
performed.
Our audit procedures included amongst
others:
•
•
•
Assessing whether any facts or
circumstances exist that may
indicate impairment of the
capitalised asset;
Performing detailed testing of
source documents to ensure
capitalised expenditure was
allocated to the correct area of
interest;
Performing detailed testing of
source documents to ensure
expenditure was capitalised in
accordance with Australian
Accounting Standards; and
• Obtaining external confirmations to
ensure the exploration licences are
current and accurate.
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.
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.
67
Directors' Responsibility 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 Responsibility 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We
also:
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
68
We communicate with the directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that
were of most significance in the audit of the financial report of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the directors' report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Canterbury Resources Limited for the 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.
BDJ Partners
................................................
Greg Cliffe
Partner
29 September 2023
69
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Shareholder information
Per ASX Listing Rule 4.10 (current at 23/08/2023)
1. Equity
Number of securities Type
144,523,530
Fully paid ordinary shares – quoted
Including 3,000,000 on holding lock
3,000,000
2,000,000
2,500,000
5,000,000
Unquoted options expiring on 31 December 2023 with an exercise price of $0.24 -
unrestricted
Unquoted options expiring on 30 June 2024 with an exercise price of $0.20 -
unrestricted
Unquoted options expiring on 30 June 2025 with an exercise price of $0.06 -
unrestricted
Unquoted options expiring on 31 December 2025 with an exercise price of $0.08 -
unrestricted
2. Substantial holders
Holder Name
Syndicate Minerals Pty Ltd
Gage Resources holdings
Alma Metals Limited
3. Small parcels
Holding Balance % Issued Capital
11,546,399
10,442,699
9,083,333
7.99%
7.23%
6.29%
At the prevailing market price of $0.028 per share at 18 August 2023, there were 199 shareholders with less
than a marketable parcel of $500.
4. Voting rights
There are no restrictions on voting rights. At a general meeting of the company every person who is or was the
registered holder of a share at the time prescribed for that purpose in the notice convening the meeting
("Eligible Member") is entitled to vote in person, by proxy or by representative. Each Eligible Member has one
vote on a show of hands and each Eligible Member has one vote per share, or a fraction of a vote on a partly
paid share, on a poll. A person who holds an ordinary share that is not fully paid is entitled, on a poll, to a
fraction of a vote equal to the proportion which the amount paid bears to the total issue price of the share. A
member is not entitled to vote if there are any calls or other sum outstanding on his or her shares. If a share is
held jointly and more than one member votes in respect of that share, only the vote of the member whose
name appears first in the register of members will be counted.
Option holders have no voting rights until the options are exercised.
There are no current on-market buy-back (LR 4.10.18).
70
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Shareholder information
5. Distribution schedule
a. Shares
Holding Ranges
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
b. Options
Holding Ranges
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
6. 20 largest shareholders
Position
Holder Name
Holders
Total Units % Issued Share Capital
26
42
92
173
148
481
7,381
141,589
730,879
6,957,215
136,686,466
144,523,530
0.01%
0.10%
0.51%
4.80%
94.58%
100.00%
Holders
Total Units
% Issued Options
-
-
-
1
12
13
-
-
-
100,000
12,400,000
12,500,000
-
-
-
0.80%
99.20%
100.00%
1
2
3
4
5
6
7
8
9
10
11
12
13
Syndicate Minerals Pty Ltd
Alma Metals Limited
Gage Resources Pty Ltd
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