Canyon Resources Limited
ABN 13 140 087 261
Annual Report - 30 June 2024
Canyon Resources Limited
Corporate directory
30 June 2024
1
Directors
Mark Hohnen - Executive Chairman
Peter Su - Non-executive Director
Scott Phegan - Non-executive Director
Gaurav Gupta - Non-executive Director
Dondo Mogajane - Non-executive Director
Company secretary
Matt Worner
Registered office
945 Wellington Street
West Perth, Western Australia, 6005
T: +61 8 9322 7600
Principal place of business
945 Wellington Street
West Perth, Western Australia, 6005
T: +61 8 9322 7600
Share register
Computershare Limited
Level 17, 221 St Georges Terrace
Perth, Western Australia, 6000
T: +61 8 9323 2000
F: +61 9323 2033
www.computershare.com.au
Auditor
HLB Mann Judd
Level 4, 130 Stirling Street
Perth, Western Australia, 6000
Solicitors
Gilbert + Tobin
Level 16 Brookfield Place
Tower 2, 123 St Georges Terrace
Perth, WA 6000
Stock exchange listing
Canyon Resources Limited shares are listed on the Australian Securities Exchange (ASX
code: CAY)
Website
www.canyonresources.com.au
Canyon Resources Limited
Contents
30 June 2024
2
Chairman's letter
3
Directors' report
4
Auditor's independence declaration
24
Consolidated statement of profit or loss and other comprehensive income
25
Consolidated statement of financial position
26
Consolidated statement of changes in equity
27
Consolidated statement of cash flows
28
Notes to the consolidated financial statements
29
Consolidated entity disclosure statement
50
Directors' declaration
51
Independent auditor's report to the members of Canyon Resources Limited
52
Corporate governance statement
56
Shareholder information
57
Interests in mineral permits
60
Canyon Resources Limited
Chairman's letter
30 June 2024
3
Chairman's letter
Dear Shareholders,
It is my pleasure to present Canyon Resources Limited’s Annual Report for the year ended 30 June 2024. The past year has
seen the achievement of significant developmental milestones for our flagship Minim Martap Bauxite Project.
Subsequent to the end of reporting period, we announced the signing of the critical Mining Licence for Minim Martap, which
provides Canyon with tenure over the Project for an initial period of 20 years, with the ability to renew for one or more periods
not exceeding 10 years each. The award of the Mining Licence quickly followed the signing of the Mining Convention in late
July 2024, which was a requirement ahead of being granted the Mining Licence.
The issue of the Mining Convention and Licence marks the culmination of an extensive approval process and is a testament to
the strong partnership and collaboration between Canyon and the Government of Cameroon, which also recognises the
substantial economic opportunity that Minim Martap offers to the region.
We were also pleased to gain the support of strategic investor Eagle Eye Asset Holdings Pte. Ltd (EEA), which made an
investment of $24.7 million in in Canyon in December 2023. The investment has supported multifaceted workstreams including
ongoing exploration, the development of mine camp infrastructure, the revised DFS and negotiations for port and rail access.
The Company’s timely development of Minim Martap is underpinned by a strengthening bauxite market led by growing supply
constraints that are being felt internationally.
Throughout the year, the Company’s management has evolved in line with advancing the development pathway of Minim
Martap. These changes included myself transitioning from a Non-Executive to Executive Chairman role, a change that I am
honoured, and excited, to be a part of. I look forward seeing through the development of Minim Martap supported by a world
class team.
At the board level, we welcomed both Mr Gaurav Gupta and Mr Dondo Mogajane as Non-Executive Directors. Mr Gupta
manages EEA, our major shareholder, and brings more than 25 years of experience in international trade and finance.
Mr Mogajane is a highly regarded South African based executive with over 25 years of experience working across key divisions
for the Ministry of Finance and National Treasury. He has held leadership roles including Chief of Staff and Head of Ministry for
the South African Ministry of Finance, Deputy Director (General) for Public Finance and held the position of Director-General
of the National Treasury for five years from June 2017.
Mr David Netherway has retired from the Board after 10 years and I, along with the Board, would like to thank David for his
hard-work, strategic counsel and efforts throughout his tenure. Canyon has grown from an explorer to an advanced bauxite
developer over this time and he leaves us in a much stronger position than where we were when he joined.
I look forward to working with the Canyon team in Australia and in Cameroon, as well as with EEA, in moving the Company to
its next stage of development and to providing a genuine alternative supply of high-grade bauxite. I thank all Canyon
shareholders for their ongoing support and look forward to an exciting year ahead.
Regards
Mark Hohnen
Executive Chairman
Canyon Resources Limited
Directors' report
30 June 2024
4
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
'the Group') consisting of Canyon Resources Limited (referred to hereafter as 'the Company' or 'parent entity') and the entities
it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were Directors of Canyon Resources Limited during the whole of the financial period and up to the date
of this report, unless otherwise stated:
Mark Hohnen - Executive Chairman (appointed from 1 April 2024 previously Non-executive Chairman)
Peter Su - Non-Executive Director
Scott Phegan - Non-Executive Director
Gaurav Gupta - Non-Executive Director (appointed 29 November 2023)
David Netherway - Non-Executive Director (resigned 1 August 2024)
Dondo Mogajane - Non-Executive Director (appointed 1 August 2024)
Principal activities
The principal activities of the entities within the Group during the year were continued bauxite exploration and engineering
studies.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the Group after providing for income tax amounted to $9,538,668 (30 June 2023: $4,986,711).
The Group had cash at bank of $22,165,818 (30 June 2023: $10,726,199) and net assets of $43,869,004 (30 June 2023:
$28,839,368).
Minim Martap Bauxite Project
During the year, the Group's focus was on securing the grant of a Mining Licence for its 100% owned Minim Martap Bauxite
Project (The Project).
Grant of Mining Licence
Subsequent to the end of the reporting period, the Group announced a major milestone through the signing of the critical
Mining Licence for Minim Martap.
The Mining Licence provides tenure over Minim Martap for an initial period of 20 years, with the ability to renew for one or
more periods not exceeding 10 years each. Development work is required to commence within 2 years, and exploitation and
production within 5 years from the date of the Mining Licence.
The Mining Licence ceremony was formally executed during a signing ceremony attended by Chief Executive Officer, Mr. Jean-
Sebastien Boutet and the Interim Minister of Mines, Industry and Technological Development, Pr Fuh Calistus Gentry.
Canyon Resources Limited
Directors' report
30 June 2024
5
Figure 1: Sonamines General Manager, Mr Serge Hervé, Camalco CEO Mr Rana Pratap Singh, Interim Minister of
Mines,Industry and Technological Development, Pr Fuh Calistas Gentry, Canyon Resources CEO Mr Jean-Sebastien Boutet, EEA
Country Head Mr Anshum Khandelwal.
Mining Convention
In late July, the Group announced the signing of a Mining Convention for Minim Martap.
The Mining Convention was formally executed during a signing ceremony attended by Camalco’s Chief Executive Officer, Mr.
Rana Pratap Singh and the Interim Minister of Mines, Fuh Calistus Gentry.
The signing of the Mining Convention and Licence followed an extensive approval process and allows the Group to proceed
with further development plans for Minim Martap. Through the issue of the Mining Convention and Licence, Canyon and its
subsidiary, Camalco SA is permitted to mine and export bauxite and alumina at Minim Martap
With critical permits in place, the focus of the Company remains on a strong pipeline of activities to be completed over the
next 12 months, including the development of significant infrastructure solutions for port and rail access. Minim Martap is a
tier-one, long-life scalable bauxite Project, underpinned by competitive operational cost estimates and an initial 20-year Life-
of-Mine.
Figure 2: Mining Convention signing ceremony
Canyon Resources Limited
Directors' report
30 June 2024
6
Key Workstreams
The Group progressed important workstreams throughout the year is it focuses on building Minim Martap towards production.
The Group commenced key workstreams across key areas such as Front-End Engineering Design (“FEED”) for mining, hauling,
railways and port facilities, as progress is made on completing a revised Bankable Feasibility Study (“BFS”).
The Group engaged in critical negotiations with the relevant authorities from CAMRAIL, the Port Authority of Duoala (PAD) and
the Haul Road. Discussions with these key partners are time intensive in nature and are focused on building a long-term
relationship to ensure that Minim Martap grows into a successful and long-term Bauxite operation.
To support the development of onsite logistics at the Bobodji campsite, the management team spent substantial time in
country building upon stakeholder engagement and ensuring timely development of local site infrastructure. The team
established a Scope of Work for topographical and geotechnical work which was supported by Sogea-Satom.
Key activities included sourcing of fuel supplies, installation of worker cabins and living quarters as well as the arrival of the
technical team to site.
Discussions continued with potential offtake partners with a notable uptick in interest for bauxite, supported by the demand
for minerals needed for the clean energy transition and the increased supply constraints faced by bauxite ore exporters across
the globe.
Figure 3: Worker cabins at Bobodji campsite
Exploration activities recommenced in December 2023 on the Makan and Ngaoundal permits. The program is targeting new
resources to add to the existing 1,027 million tonnes of high-grade bauxite and consists of a test pitting, sampling and assaying
program across 16 potential targets.
Following the initial stage of the drill program, Canyon extended the program and increased the number of drill rigs and
personnel deployed on site to expedite completion. Led by Camalco operators and supported by SRK Mining and exploration
consultants, Canyon expects the drill program to be completed in September, with assays to be announced in Q4 2024.
The Group is confident that the program will provide an advanced understanding of the orebody across the broader Minim
Martap region, which would support optimisation of the mine operations strategy to be undertaken by SRK, Australia as part
of the revised BFS.
Canyon Resources Limited
Directors' report
30 June 2024
7
Figure 4: CEO of Canyon Resources, Jean-Sebastien Boutet and CEO of Camalco, Mr Rana Singh
With critical permits in place, the focus of the Company remains on a strong pipeline of activities to be completed over the
next 12 months, including the development of significant infrastructure solutions for port and rail access. Minim Martap is a
tier-one, long-life scalable bauxite Project, underpinned by competitive operational cost estimates and an initial 20-year Life-
of-Mine.
Reserves and Resources
The Project is validated by the Ore Reserve estimate announced 21 June 2022 prepared by a Competent Person, in accordance
with the JORC Code (2012) and is stated as:
Canyon Resources Limited
Directors' report
30 June 2024
8
The underlying Mineral Resource estimate announced 11 May 2021, prepared by a Competent Person, in accordance with the
JORC Code (2012) is stated as:
Competent Person’s Statement – Ore Reserves
The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr John Battista,
a Competent Person who is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and
Metallurgy and Mr Andrew Hutson, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy
and is currently employed by Resolve Mining Solutions Mr Battista and Mr Hutson have sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a
Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral
Resources, and Ore Reserves (JORC Code).
Competent Person’s Statement – Mineral Resources
The information in this report that relates to mineral resources is based on information compiled or reviewed by Mr Mark
Gifford, an independent Geological expert consulting to Canyon Resources Limited. Mr Mark Gifford is a Fellow of the
Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which 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 (JORC
Code).
Mineral Resource Estimate
The data in this report that relates to the Mineral Resource estimates for the Minim Martap Bauxite Project is based on
information in the Resources announcement of 11 May 2021 and available to view on the Company’s website and ASX.
The Company confirms that it is not aware of any new information or data that materially affects the information included in
the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and
technical parameters underpinning the estimates in the original market announcement continue to apply and have not
materially changed. The Company confirms that the form and the context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
Canyon Resources Limited
Directors' report
30 June 2024
9
Ore Reserve estimate
The data in this report that relates to the Ore Reserve estimate estimates for the Minim Martap Bauxite Project is based on
information in the maiden Ore Reserve announcement of 25 May 2021 and available to view on the Company’s website and
ASX.
The Company confirms that it is not aware of any new information or data that materially affects the information included in
the original market announcement and, in the case of estimates of Ore Reserves, that all material assumptions and technical
parameters underpinning the estimates in the original market announcement continue to apply and have not materially
changed. The Company confirms that the form and the context in which the Competent Person’s findings are presented have
not been materially modified from the original market announcement.
Forward-looking statements
All statements other than statements of historical fact included in this report including, without limitation, statements
regarding future plans and objectives of Canyon, are forward-looking statements. When used in this report, forward-looking
statements can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”,
“opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions
regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of
future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of
which are beyond the control of the Company, its directors and management of Canyon that could cause Canyon’s actual
results to differ materially from the results expressed or anticipated in these statements.
Canyon cannot and does not give any assurance that the results, performance or achievements expressed or implied by the
forward-looking statements contained in this report will actually occur and investors are cautioned not to place undue reliance
on these forward-looking statements. Canyon does not undertake to update or revise forward-looking statements, or to publish
prospective financial information in the future, regardless of whether new information, future events or any other factors
affect the information contained in this report, except where required by applicable law and stock exchange listing
requirements.
Strategic Placement to advance Minim Martap development
In December 2023, a strategic capital investment by Eagle Eye Asset Holdings Pte Ltd (“EEA”) pursuant to the subscription
agreement with EEA announced in August 2023 (“Subscription Agreement”) was completed.
Pursuant to the terms of the Subscription Agreement, EEA agreed to:
(a) subscribe for 150,000,000 new fully paid ordinary shares in the Company (“Shares”) at an issue price of $0.07 each
(“Subscription Shares”);
(b) exercise its 202,900,000 existing options each with an exercise price of $0.07 and acquire the corresponding number of
Shares on exercise (“Exercise Shares”); and
(c) subscribe for 500,000,000 new unlisted options to acquire Shares, each with an exercise price of $0.07 and an expiry date
of 26 December 2026 (“New Options”).
The issue of the New Options was subject to shareholder approval under Listing Rule 7.1 and the issue of the Subscription
Shares, the Exercise Shares and any Shares on exercise of the New Options and the resulting increase in EEA’s relevant interest
in the Company was subject to shareholder approval under item 7 section 611 of the Corporations Act 2001 (Cth).
Approvals were obtained at the Company’s AGM held on Wednesday, 29 November 2023.
The total funds received from the strategic placement was $24.7 million (before costs) with the funds to be applied towards
development of Minim Martap.
The Investment further strengthened the strategic relationship between Canyon Resources Limited and EEA.
Canyon Resources Limited
Directors' report
30 June 2024
10
EEA has a successful track record in investment and developing projects in Africa and between the Group and EEA, there is
significant experience to deliver on the long-term vision to develop an integrated African bauxite and aluminium value chain.
Corporate
The Company's CEO Jean-Sebastien Boutet attended Fastmarkets Bauxite & Alumina 2024 in Miami, USA. The event is one of
the largest Bauxite and Alumina conferences globally and attracts delegates from the full spectrum of the supply chain including
mining, transport, refining, and trading. The conference provided valuable insight into supply challenges, pricing forecasts and
regional updates on major projects which fosters an environment of networking amongst professionals that seek to overcome
these challenges.
Following the attendance of Fastmarkets, Jean-Sebastien Boutet and Camalco Chief Executive Officer Rana Singh attended the
fourth edition of the Cameroon International Mining and Energy Conference (CIMEC), which is one of the largest business
events in Cameroon, drawing participation from government and corporate leaders to focus on the country’s mining, oil and
gas, and energy sectors.
Canyon Resources Limited and Camalco acted as the lead sponsors of the event and were fortunate to have been presented
the Special Jury award for the branding and sponsoring of the event.
Figure 5: CEO of Canyon Resources, Jean-Sebastien Boutet presented the Special Jury award at CIMEC 2024
Annual General Meeting and Capital Raising
On 29 November 2023, the Annual General Meeting of Shareholders (“AGM”) was held, and all resolutions were passed. This
included the ratification of the transformational strategic capital investment by EEA.
Board Changes
Following the completion of the AGM, the Company appointed Mr. Gaurav Gupta as a Non-executive Director. Mr Gupta
manages a Monetary Authority of a Singapore registered family office, with high-growth investment holdings across the
mineral and biotech industries, including a major holding in the Company through EEA.
Mr Gupta has over 25 years’ experience in international trade and is a qualified Chartered Accountant. He holds a Bachelor of
Commerce Degree from the University of Delhi.
Non-executive Chairman, Mr Mark Hohnen was appointed to the position of Executive Chairman, effective 1 April 2024. The
inclusion of Mr Hohnen in the executive team provides the Company with an Australian-based leader and leverages his
extensive experience in the mineral resources sector, particularly the development of mining projects in Africa.
Canyon Resources Limited
Directors' report
30 June 2024
11
Subsequent to the end of the year, Mr Dondo Mogajane was appointed as Non-Executive Director effective 1 August 2024. Mr
Mogajane replaces Mr David Netherway, who has retired from the Board after ten years.
Mr Mogajane is a highly regarded South African based executive, who brings over 25 years’ experience working across key
divisions for the Ministry of Finance and National Treasury. He has held leadership roles including Chief of Staff and Head of
Ministry for the South African Ministry of Finance, Deputy Director (General) for Public Finance and held the position of
Director-General of the National Treasury for five years from June 2017.
Mr Netherway first joined the Board in 2014. During his tenure with the Company, Mr Netherway assumed the role of Chairman
in 2016 and then transitioned back to Non-Executive Director in December 2020. Throughout the ten years Mr Netherway
served on the Board, the Group has successfully grown and developed Minim Martap into a globally significant, high-grade
bauxite development Project.
Management Changes
Patrice L’Huillier was appointed as Project Director on 1 December 2023 to prioritise engagement with the local community in
preparation for development and construction. Mr L’Huillier has more than 25 years of experience in metals & mining covering
aluminium, copper, manganese and iron ore mostly in operations and project execution.
Camalco also appointed Didier Ouedraogo as Head of Geology and Exploration. He will be responsible for the drilling campaigns
and technical oversite in the mine development. Mr Oueadraogo formally commenced on 1 January 2024.
Matters subsequent to the end of the financial year
39,479,493 options exercisable at $0.07 each on or before 10 August 2024 were converted to fully paid ordinary shares, raising
$2,763,565.
65,863,019 options exercisable at $0.07 each expired unexercised on 10 August 2024.
On 1 August 2024 Mr Dondo Mogajane was appointed as Non-Executive Director and Mr David Netherway resigned as Non-
Executive Director.
The Company held a shareholders’ meeting on 9 September 2024 for the grant of options to Mr Mark Hohnen all resolutions
were approved. The options have not yet been issued to Mr Hohnen.
The signing of the Mining Convention for the Minin-Martap Bauxite Project in Cameroon was signed on 31 July 2024 along with
the signing of the Mining Licence on 16 September 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of the Group and the expected results of operations have not been
included in this report because the Directors believe it would be likely to result in unreasonable prejudice to the Group.
Business risks
The Group is engaged in mineral exploration activities which, by their very nature, are speculative. Due to the high-risk nature
of the Group’s business and the present stage of the various projects, the Board is unable to provide certainty of the expected
results of these activities, or that any or all of these likely activities will be achieved. Some of the key risks which the Group is
subject to are summarised below.
Overseas business activities and country risk (Geopolitical Risk)
The Group engages in exploration activities outside of Australia, mainly in Cameroon. The success of the Group's operation
depends on the political stability in this country and the availability of qualified and skilled workforce to support operations.
While the operations of the Group in this country is currently very stable, a change in the government may result in changes
to the foreign investment laws and these assets could have an adverse effect on the Group's operational results.
Canyon Resources Limited
Directors' report
30 June 2024
12
To manage this risk, the Group ensures that all significant transactions in this country are supported by robust contracts
between the company and third parties. We have developed a mechanism to counter legal risk, where foreign subsidiaries and
management can receive appropriate legal guidance regarding matters such as important agreements and lawsuits in foreign
countries.
Exploration and development risks
Mineral exploration and development is a speculative and high-risk undertaking that may be impeded by circumstances and
factors beyond the control of the Group. As the Group is an exploration company, there can be no assurance that exploration
on the Projects, or any other exploration tenure that may be acquired in the future, will result in the discovery of an economic
mineral resource. Even if an apparently viable mineral resource is identified, there is no guarantee that it can be economically
exploited.
Any resource estimate will be an expression of judgment based on knowledge, experience and industry practice. By their very
nature, resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. If
the Group undertakes scoping, pre-feasibility, definitive feasibility and bankable feasibility studies that confirm the economic
viability of a Project, there is still no guarantee that the Project will be successfully brought into production as assumed or
within the estimated parameters in the study (e.g. operational costs and commodity prices) once production commences.
Additional requirements for capital
Additional funding may be required if costs exceed the Group's estimates and will be required once those funds are depleted.
To effectively implement its business and operations plans in the future, to take advantage of opportunities for project
development, acquisitions, joint ventures or other business opportunities and to meet any unanticipated liabilities or expenses
which the Company may incur, additional equity or other finance may be required. The Company may seek to raise further
funds through equity or debt financing, joint ventures, production sharing arrangements, royalty streaming or other means, in
future.
Failure to obtain sufficient financing for the Group's activities may result in delay and indefinite postponement of exploration,
development or production on the Group's properties or even loss of a property interest. There can be no assurance that
additional finance will be available when needed or, if available, the terms of the financing might not be favourable to the
Group and might involve substantial dilution to Shareholders.
Climate risk
There are a number of climate-related factors that may affect the operations and proposed activities of the Group. The climate
change risks particularly attributable to the Group include:
●
the emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and market
changes related to climate change mitigation. The Group may be impacted by changes to local or international compliance
regulations related to climate change mitigation efforts, or by specific taxation or penalties for carbon emissions or
environmental damage. These examples sit amongst an array of possible restraints on industry that may further impact
the Group and its profitability. While the Group will endeavour to manage these risks and limit any consequential impacts,
there can be no guarantee that the Group will not be impacted by these occurrences; and
●
climate change may cause certain physical and environmental risks that cannot be predicted by the Group, including
events such as increased severity of weather patterns and 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 Group operates
Insurance and uninsured risks
Although the Group maintains insurance to protect against certain risks in such amounts as it considers to be reasonable, its
insurance will not cover all the potential risks associated with its operations and insurance coverage may not continue to be
available or may not be adequate to cover any resulting liability. It is not always possible to obtain insurance against all such
risks and the Group may decide not to insure against certain risks because of high premiums or other reasons.
Canyon Resources Limited
Directors' report
30 June 2024
13
Reliance on key personnel
The responsibility of overseeing the day-to-day operations and the strategic management of the Group depends substantially
on its senior management and its key personnel. There can be no assurance that there will be no detrimental effect on the
Group if one or more of these key employees cease their employment or other roles in the Group.
The Group may not be able to replace its senior management or key personnel with persons of equivalent expertise and
experience within a reasonable period of time or at all and the Group may incur additional expenses to recruit, train and retain
personnel. Loss of such personnel may also have an adverse effect on the performance of the Group.
These risks are mitigated by providing competitive compensation packages for similar sized projects and incentives where
salaries cannot be matched against other industries.
Environmental regulation
With respect to its environmental obligations regarding its exploration activities the Group endeavours to ensure that it
complies with all regulations when carrying out any exploration work and is not aware of any breach at this time.
Information on Directors
Name:
Mark Hohnen
Title:
Executive Chairman
Experience and expertise:
Mr Hohnen has been involved in the mineral resource sector since the late 1970s and
has extensive international business experience in a wide range of industries including
mining and exploration, property, investment, software and agriculture. Mr Hohnen has
served as Non-executive Chairman of Boss Resources Ltd (ASX:BOE), and was also a
director of Kalahari Minerals Ltd and Extract Resources Ltd, having successfully
negotiated the sale of both companies to Taurus Minerals Ltd.
Other current directorships:
Non-Executive Chairman of Parabellum Resources Ltd (ASX:PBL) - appointed 1 July 2021
Former directorships (last 3 years): Bacanora Lithium Plc (LSE: BCN) – resigned in December 2021
Interests in shares:
2,221,262 ordinary shares
Interests in options:
1,000,000 unlisted options exercisable at $0.09 each on or before 2 December 2025
1,000,000 unlisted options exercisable at $0.12 each on or before 2 December 2025
1,000,000 unlisted options exercisable at $0.17 each on or before 2 December 2025
Name:
Gaurav Gupta
Title:
Non-Executive Director (appointed 29 November 2023)
Experience and expertise:
Mr Gupta manages a Monetary Authority of Singapore registered family office with high-
growth/investment holdings across mineral and biotech industries. Within the mining
sector, these investments encompass base and precious metals, coloured gemstones,
and the broader Electric Vehicle supply chain, including a major holding in Canyon
through EEA.
Mr Gupta has 25 years’ experience in international trade and is a qualified Chartered
Accountant. He holds a Bachelor of Commerce Degree from the University of Delhi.
Other current directorships:
Non-Executive Director of Prospect Resources Limited (ASX:PSC) – appointed 23 January
2023
Former directorships (last 3 years): None
Interests in shares:
555,800,000 fully paid ordinary shares
Interests in options:
500,000,000 unlisted options exercisable at $0.07 each on or before 26 December 2026
Canyon Resources Limited
Directors' report
30 June 2024
14
Name:
Scott Phegan
Title:
Non-Executive Director
Qualifications:
BE Chem
Experience and expertise:
Mr Phegan has held multiple technical, project, strategic and executive roles within the
bauxite and alumina industries over a 30-year international career with Alcoa. In his
capacity as Global Director for Process Design and Development, he was responsible for
design and commissioning of multibillion-dollar refining expansions and refining
development projects in Australia, Middle East, Brazil, Guinea, Ghana, Jamaica and
Vietnam.
Mr Phegan is intimately familiar with the bauxite industry supply lines, customers, and
mining practices in relation to alumina refining and project development, as well as the
bauxite business development pathway having supported customer development
activities in China and Vietnam over several years.
His experience extends across the full project execution lifecycle from study phases
through to construction, commissioning and operations.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Nil
Interests in options:
Nil
Name:
Peter Su
Title:
Non-Executive Director
Qualifications:
Hons. B.Comm
Experience and expertise:
Mr Su is actively involved in property investment and development in Australia and
overseas, he is a strategic investor with a diverse range of business interests in Australia
and overseas. The Su family have historically held commercial interest in bauxite and
alumina refining in China.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
67,545,950 ordinary shares
Interests in options:
4,444,444 unlisted options exercisable at $0.07 each on or before 10 August 2024
Name:
Dondo Mogajane
Title:
Non-Executive Director (appointed 1 August 2024)
Experience and expertise:
Mr Mogajane is a highly regarded South African based executive, who brings over 25
years' experience working across key divisions for the Ministry of Finance and National
Treasury. He has held leadership roles including Chief of Staff and Head of Ministry for
the South African Ministry of Finance, Deputy Director (General) for Public Finance and
held the position of Director-General of the National Treasury for five years from June
2017.
Other current directorships:
Non-Executive Director of Choppies Enterprises (BSE:CHOPPIES and JSE:CHP) - appointed
30 August 2023
Former directorships (last 3 years): None
Interests in shares:
Nil
Interests in options:
Nil
Interests in rights:
Nil
Canyon Resources Limited
Directors' report
30 June 2024
15
Name:
David Netherway
Title:
Non-Executive Director (resigned 1 August 2024)
Qualifications:
B.Eng (Mining), CDipAF, F.Aus.IMM
Experience and expertise:
Mr Netherway is a mining engineer with over 40 years of experience in the mining
industry and until the takeover by Gryphon Minerals Limited, was CEO of Shield Mining
Limited, an ASX listed exploration company. He was involved in the construction and
development of the New Liberty, Iduapriem, Siguiri and Kiniero gold mines in West Africa
and has extensive mining experience in Africa, Australia, China, Canada, India and the
former Soviet Union.
Mr Netherway was the Chairman of Afferro Mining, a UK listed iron ore exploration and
development company in Cameroon until December 2013 when Afferro was subject to
a US$200 million takeover by AIM listed IMIC plc.
Other current directorships:
n/a
Former directorships (last 3 years): n/a
Interests in shares:
n/a
Interests in options:
n/a
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Matt Worner
LLB, B.Bus
Appointed 16 June 2021
Mr Worner is a former lawyer, with a broad experience in IPOs, capital raising, ASX Listing Rules and Corporations Act issues. He
has held management, company secretarial and board positions with various ASX and AIM listed companies. He maintains
strong connections with brokers in both Australia and London and is currently a director of Talon Petroleum Limited (ASX:TPD).
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2024, and the
number of meetings attended by each Director were:
Full Board
Attended
Held
Mark Hohnen
5
5
Gaurav Gupta
3
3
David Netherway
4
5
Peter Su
4
5
Scott Phegan
5
5
Held: represents the number of meetings held during the time the Director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance
with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all Directors.
Canyon Resources Limited
Directors' report
30 June 2024
16
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional information
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
This report outlines the remuneration arrangements in place for the key management personnel of Canyon for the financial
year ended 30 June 2024. The information provided in this remuneration report has been audited as required by Section 308
(3C) of the Corporations Act 2001.
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 Company
and the Group, directly or indirectly, including any director (whether executive or otherwise) of the Company, and includes the
executives in the Group.
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Remuneration Philosophy
The performance of the Company depends upon the quality of the directors and executives. The philosophy of the Company
in determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
- link executive rewards on sustained growth and key non-financial drivers of value.
Remuneration and nomination committee
Due to the size of the Company the entire Board are members of the Remuneration and Nomination Committee. The
Committee assesses the appropriateness of the nature and amount of remuneration of directors and executives on a periodic
basis by reference to relevant employment market conditions with an overall objective of ensuring maximum stakeholder
benefit from the retention of a high-quality Board and executive team.
Non-executive Director's remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to
time by a general meeting. The maximum aggregate payable to non-executive directors approved by shareholders is $300,000
per annum.
Executive remuneration
The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which
has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits
●
short-term performance incentives
●
share-based payments
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Canyon Resources Limited
Directors' report
30 June 2024
17
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative remuneration
in the market and internally and, where appropriate, obtaining external advice on policies and practices. The Board has access
to external, independent advice where necessary.
Directors and executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including
cash and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen
will be optimal for the recipient without creating undue cost for the Company.
Variable Remuneration
The objective of the short term incentive program is to link the achievement of the Company's operational targets with the
remuneration received by the executives charged with meeting those targets. The total potential short-term incentive available
is to be set at a level so as to provide sufficient incentive to the executive to achieve the operational targets and such that the
cost to the Company is reasonable in the circumstances.
Actual payments which may be granted to each executive depend on the extent to which specific operating targets set at the
beginning of the financial year are met. For the year to 30 June 2024, and to the date of this report, the Company made $Nil
payments to key management personnel (2022: $Nil).
The Company may also make long term incentive payments to reward senior executives in a manner that aligns this element
of remuneration with the creation of shareholder wealth.
Employee Share Plan
On 21 November 2022 Shareholders approved a new employee incentive scheme titled the Canyon Long Term Incentive Plan.
As a result of this Shareholder approval the Company will be able to issue up to 40,000,000 securities (being options,
performance rights or performance shares) under the Plan to eligible participants over a period of 3 years without impacting
on the Company’s ability to issue up to 15% of its total ordinary securities without Shareholder approval in any 12-month
period.
The objective of the Plan is to attract, motivate and retain key employees and it is considered by the Company that the adoption
of the Plan and the future issue of Plan Securities under the Plan will provide selected employees with the opportunity to
participate in the future growth of the Company.
Any future issues of Plan Securities to a related party or a person whose relationship with the company or the related party is,
in ASX’s opinion, such that approval should be obtained will require additional Shareholder approval under ASX Listing Rule
10.14 at the relevant time.
Voting and comments made at the Company's Annual General Meeting ('AGM')
At the 29 November 2023 AGM, 98.96% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2023. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
The key management personnel of the Group for the year ended 30 June 2024 consisted of the following Directors of Canyon
Resources Limited:
●
Mark Hohnen - Executive Chairman (appointed 1 April 2024 was previously Non-Executive Chairman)
●
Gaurav Gupta - Non Executive Director (appointed 29 November 2023)
●
Peter Su - Non-Executive Director
●
Scott Phegan - Non-Executive Director
●
David Netherway - Non-Executive Director
Canyon Resources Limited
Directors' report
30 June 2024
18
And the following person:
●
Jean-Sebastien Boutet (Chief Executive Officer)
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
Cash
Other
Super-
Long service
Equity-
and fees
bonus
services
annuation
leave
settled
Total
30 June 2024
$
$
$
$
$
$
$
Non-Executive Directors:
Gaurav Gupta
29,167
-
-
-
-
-
29,167
David Netherway
50,000
-
-
-
-
-
50,000
Mark Hohnen
112,500
-
-
-
-
-
112,500
Peter Su
50,000
-
-
-
-
-
50,000
Scott Phegan
45,045
-
-
4,955
-
-
50,000
Other Key Management
Personnel:
Jean-Sebastien Boutet
400,000
-
-
-
-
107,858
507,858
686,712
-
-
4,955
-
107,858
799,525
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
Cash
Other
Super-
Long service
Equity-
and fees
bonus
services
annuation
leave
settled
Total
30 June 2023
$
$
$
$
$
$
$
Non-Executive Directors:
Cliff Lawrenson
15,323
-
-
-
-
-
15,323
David Netherway
53,333
-
-
-
-
-
53,333
Mark Hohnen
71,598
-
-
-
-
53,024
124,622
Peter Su
51,163
-
-
-
-
-
51,163
Scott Phegan
40,933
-
-
4,298
-
-
45,231
Steven Zaninovich
7,477
-
-
-
-
-
7,477
Executive Directors:
Phillip Gallagher *
389,504
-
-
-
(60,000)
-
329,504
Other Key Management
Personnel:
Jean-Sebastien Boutet
400,000
-
-
-
-
341,374
741,374
Rick Smith
169,176
-
-
-
-
-
169,176
1,198,507
-
-
4,298
(60,000)
394,398
1,537,203
*
Cash salary and fees include reversal of annual leave accrual ($44,503).
Canyon Resources Limited
Directors' report
30 June 2024
19
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
Performance related
Name
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Non-Executive Directors:
Cliff Lawrenson
-
100%
-
-
David Netherway
100%
100%
-
-
Scott Phegan
100%
100%
-
-
Steven Zaninovich
-
100%
-
-
Peter Su
100%
100%
-
-
Mark Hohnen
100%
57%
-
43%
Executive Directors:
Phillip Gallagher
-
100%
-
-
Other Key Management Personnel:
Rick Smith
-
100%
-
-
Jean-Sebastien Boutet
79%
54%
21%
46%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Mr Mark Hohnen
Title:
Executive Chairman
Details:
Remuneration of $150,000 per annum from 1 April 2024.
Name:
Mr Jean-Sebastien Boutet
Title:
Chief Executive Officer
Agreement commenced:
1 January 2022
Details:
Remuneration of $400,000 per annum inclusive of any other benefits.
The agreement may be terminated by either the Company or Mr Boutet upon the giving
of 6 months’ notice.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year ended
30 June 2024.
Options
There were no options over ordinary shares issued to Directors and other key management personnel as part of compensation
during the year ended 30 June 2024.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors and
other key management personnel in this financial year or future reporting years are as follows:
Canyon Resources Limited
Directors' report
30 June 2024
20
Fair value
per right
Name
Grant date
Vesting condition *
Number
at grant date
Jean-Sebastien Boutet
18 July 2022
1
1,000,000
$0.084
18 July 2022
2
1,000,000
$0.075
18 July 2022
3
1,000,000
$0.071
18 July 2022
4
1,000,000
$0.070
18 July 2022
5
1,000,000
$0.090
18 July 2022
6
1,000,000
$0.090
18 July 2022
7
1,000,000
$0.090
18 July 2022
8
1,000,000
$0.090
18 July 2022
9
1,000,000
$0.090
* Performance Rights are subject to the following Vesting Conditions:
(1) Achievement of a 10-day Volume Weighted Average Price ('VWAP') of $0.10
(2) Achievement of a 10-day VWAP of $0.15
(3) Achievement of a 10-day VWAP of $0.20
(4) Achievement of a 10-day VWAP of $0.25
(6) 24 months continuous employment
(7) 36 months continuous employment
(8) Fully approved mining licence
(9) Complete rail access agreement
(10) Executed binding off take agreement for minimum 2MT for a 12 month period
Performance rights granted carry no dividend or voting rights.
The number of performance rights over ordinary shares granted to (and vested) Directors and other key management
personnel as part of compensation during the year ended 30 June 2024 are set out below:
Number of Number of
Number of
Number of
rights
rights
rights
rights
granted
granted
vested
vested
during the
during the
during the
during the
year
year
year
year
Name
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Jean-Sebastien Boutet
-
10,000,000
1,000,000
1,000,000
For performance rights expense during the year ended 30 June 2024, refer to note 28 to the financial report for details of the
methodology used to value those rights.
Canyon Resources Limited
Directors' report
30 June 2024
21
Additional disclosures relating to key management personnel
Shareholding
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, including their personally related parties, is set out below:
Balance at Performance
Balance at
the start of rights/options
the end of
the year
converted
Additions
Other2
the year
Ordinary shares
Gaurav Gupta1
- 202,900,000 150,000,000 202,900,000 555,800,000
David Netherway
14,968,570
-
-
-
14,968,570
Mark Hohnen
450,000
-
1,294,595
-
1,744,595
Peter Su
67,545,950
-
-
-
67,545,950
Scott Phegan
-
-
-
-
-
Jean-Sebastien Boutet
3,444,444
3,444,444
-
-
6,888,888
86,408,964 206,344,444 151,294,595 202,900,000 646,948,003
(1) Appointed 29 November 2023
(2) Balance on appointment
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other members
of key management personnel of the Group, including their personally related parties, is set out below:
Balance at
Balance at
the start of
the end of
the year
Issued1
Exercised
Other2
the year
Options over ordinary shares
Mark Hohnen
3,000,000
-
-
-
3,000,000
Gaurav Gupta3
- 500,000,000 (202,900,000) 202,900,000 500,000,000
David Netherway
555,555
-
-
-
555,555
Peter Su
4,444,444
-
-
-
4,444,444
Scott Phegan
-
-
-
-
-
Jean-Sebastien Boutet
2,444,444
-
(2,444,444)
-
-
10,444,443 500,000,000 (205,344,444) 202,900,000 507,999,999
(1) Free attaching options to share capital issued
(2) Balance on appointment
(3) Appointed 29 November 2023
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each Director and
other members of key management personnel of the Group, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Converted
other
the year
Performance rights over ordinary shares
Mark Hohnen
-
-
-
-
-
Gaurav Gupta
-
-
-
-
-
David Netherway
-
-
-
-
-
Peter Su
-
-
-
-
-
Scott Phegan
-
-
-
-
-
Jean-Sebastien Boutet
9,000,000
-
(1,000,000)
-
8,000,000
9,000,000
-
(1,000,000)
-
8,000,000
Canyon Resources Limited
Directors' report
30 June 2024
22
Additional information
It is not possible at this time to evaluate the Company's financial performance using generally accepted measures such as
profitability and total shareholder return as the Company is an exploration company with no signification revenue stream. This
assessment will be developed if and when the Company moves from explorer to producer.
The earnings of the Group for the five years to 30 June 2024 are summarised below:
2024
2023
2022
2021
2020
$
$
$
$
$
Loss after income tax
(9,538,668)
(4,986,711)
(12,775,411)
(4,751,302)
(8,520,515)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
2020
Share price at financial year end ($)
0.07
0.07
0.04
0.12
0.17
Basic earnings per share (cents per share)
(0.80)
(0.54)
(1.84)
(0.80)
(1.83)
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Canyon Resources Limited under option at the date of this report are as follows:
Exercise
Number
Expiry date
price
under option
2 December 2025
$0.170
1,000,000
2 December 2025
$0.090
1,000,000
2 December 2025
$0.120
1,000,000
26 December 2026
$0.070 500,000,000
503,000,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares under performance rights
Unissued ordinary shares of Canyon Resources Limited under performance rights at the date of this report are as follows:
Grant Date
Number
18 July 2022
8,000,000
Shares issued on the exercise of options
The following ordinary shares of Canyon Resources Limited were issued during the year ended 30 June 2024 and up to the date
of this report on the exercise of options granted:
Exercise
Number of
Expiry date
price
shares issued
10 August 2025
$0.070 202,900,000
10 August 2024
$0.070
4,738,286
207,638,286
Canyon Resources Limited
Directors' report
30 June 2024
23
Shares issued on the exercise of performance rights
The following ordinary shares of Canyon Resources Limited were issued during the year ended 30 June 2024 and up to the date
of this report on the exercise of performance rights granted:
Valuation
Number of
Date performance rights converted
per share
shares issued
4 March 2024
$0.090
1,000,000
Indemnity and insurance of officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as a Director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
HLB Mann Judd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mark Hohnen
Executive Chairman
30 September 2024
24
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Canyon Resources Limited for
the year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2024
L Di Giallonardo
Partner
Canyon Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
25
Other income
5
-
22,614
Interest received
611,836
170,263
Expenses:
Foreign exchange loss
(19,991)
-
Employee benefits expense
(2,417,340)
(2,302,584)
Consultants and contractors
(525,078)
(317,248)
Depreciation and amortisation expense
(97,495)
(59,447)
Impairment of exploration
11
-
(550,000)
Loss on disposal of plant and equipment
-
(1,017)
Travel expenses
(298,278)
(188,818)
Compliance and regulatory
(80,917)
(94,757)
Legal and professional fees
(110,082)
(143,580)
Share-based payments
28
(107,858)
(394,398)
Exploration and evaluation expenditure expensed
(5,919,102)
(794,883)
Interest expense
(34)
(3,146)
Marketing & sponsorship
(163,185)
-
Occupancy
(107,433)
(70,022)
Administration
(303,711)
(259,688)
Loss before income tax expense
(9,538,668)
(4,986,711)
Income tax expense
6
-
-
Loss after income tax expense for the year
16
(9,538,668)
(4,986,711)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
31,580
847,186
Other comprehensive income for the year, net of tax
31,580
847,186
Total comprehensive loss for the year
(9,507,088)
(4,139,525)
Cents
Cents
Basic loss per share
29
(0.80)
(0.54)
Diluted loss per share
29
(0.80)
(0.54)
Canyon Resources Limited
Consolidated statement of financial position
As at 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
26
Assets
Current assets
Cash and cash equivalents
7
22,165,818
10,726,199
Trade and other receivables
8
403,203
182,648
Other assets
9
89,298
401,642
Total current assets
22,658,319
11,310,489
Non-current assets
Plant and equipment
10
1,246,349
197,061
Capitalised exploration expenditure
11
20,349,587
18,073,713
Other assets
9
282,288
-
Total non-current assets
21,878,224
18,270,774
Total assets
44,536,543
29,581,263
Liabilities
Current liabilities
Trade and other payables
12
638,349
708,980
Provisions
13
29,190
32,915
Total current liabilities
667,539
741,895
Total liabilities
667,539
741,895
Net assets
43,869,004
28,839,368
Equity
Issued capital
14 113,523,106
89,004,240
Reserves
15
6,890,525
6,841,087
Accumulated losses
16
(76,544,627)
(67,005,959)
Total equity
43,869,004
28,839,368
Canyon Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2024
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
27
Issued
Foreign
currency
Share-based
payments
Accumulated
Total equity
capital
reserve
reserve
losses
$
$
$
$
$
Balance at 1 July 2022
76,733,044
(786,966)
6,476,469
(62,019,248)
20,403,299
Loss after income tax expense for the year
-
-
-
(4,986,711)
(4,986,711)
Other comprehensive income for the year, net
of tax
-
847,186
-
-
847,186
Total comprehensive income/(loss) for the year
-
847,186
-
(4,986,711)
(4,139,525)
Transactions with owners in their capacity as
owners:
Share issued for cash
12,419,000
-
-
-
12,419,000
Share issue costs
(237,804)
-
-
-
(237,804)
Value of performance rights expensed
-
-
341,374
-
341,374
Performance rights converted
90,000
-
(90,000)
-
-
Options issued
-
-
53,024
-
53,024
Balance at 30 June 2023
89,004,240
60,220
6,780,867
(67,005,959)
28,839,368
Issued
Foreign
currency
Share-based
payments
Accumulated
Total equity
capital
reserve
reserve
losses
$
$
$
$
$
Balance at 1 July 2023
89,004,240
60,220
6,780,867
(67,005,959)
28,839,368
Loss after income tax expense for the year
-
-
-
(9,538,668)
(9,538,668)
Other comprehensive income for the year, net
of tax
-
31,580
-
-
31,580
Total comprehensive income/(loss) for the year
-
31,580
-
(9,538,668)
(9,507,088)
Transactions with owners in their capacity as
owners:
Share issued for cash
25,034,679
-
-
-
25,034,679
Share issue costs
(605,813)
-
-
-
(605,813)
Value of performance rights expensed
-
-
107,858
-
107,858
Performance rights converted
90,000
-
(90,000)
-
-
Balance at 30 June 2024
113,523,106
91,800
6,798,725
(76,544,627)
43,869,004
Canyon Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
28
Cash flows from operating activities
Payments to suppliers and employees
(3,796,056)
(3,730,633)
Interest received
344,332
134,170
Interest and other finance costs paid
(34)
(3,146)
Payments for exploration and evaluation expenditure
(6,121,882)
(952,577)
Net cash used in operating activities
26
(9,573,640)
(4,552,186)
Cash flows from investing activities
Payments for plant and equipment
10
(1,123,736)
(40,502)
Payments for exploration and evaluation
11
(2,380,052)
(1,339,481)
Net cash used in investing activities
(3,503,788)
(1,379,983)
Cash flows from financing activities
Proceeds from issue of shares
14
25,034,679
12,419,000
Share issue transaction costs
(605,813)
(237,804)
Net cash from financing activities
24,428,866
12,181,196
Net increase in cash and cash equivalents
11,351,438
6,249,027
Cash and cash equivalents at the beginning of the financial year
10,726,199
4,478,367
Effects of exchange rate changes on cash and cash equivalents
88,181
(1,195)
Cash and cash equivalents at the end of the financial year
7
22,165,818
10,726,199
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
29
Note 1. General information
The financial statements cover Canyon Resources Limited as a Group consisting of Canyon Resources Limited and the entities
it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Canyon
Resources Limited's functional and presentation currency.
Canyon Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
945 Wellington Street
West Perth, Western Australia, 6005
T: +61 8 9322 7600
A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is
not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 September 2024. The
Directors have the power to amend and reissue the financial statements.
Note 2. Material accounting policy information
The accounting policies that are material to the Group are set out below. The accounting policies adopted are consistent with
those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
In the Directors' opinion, none of the new or amended Accounting Standards and Interpretations have had, or will have a
material effect on the Group's financial performance or position.
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and
realisation of assets and the settlement of liabilities in the normal course of business.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary
information about the parent entity is disclosed in note 23.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
30
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Canyon Resources Limited
('Company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Canyon Resources
Limited and its subsidiaries together are referred to in these financial statements as 'the Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to
the Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the
Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the
fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or
loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Canyon Resources Limited's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
31
Revenue recognition
The Group recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Capitalised exploration expenditure
Exploration and evaluation costs are either expensed as incurred or capitalised where the capitalised expense meets the
requirements for capitalisation. Exploration and evaluation costs are carried forward only if the rights to tenure of the area of
interest are current and either:
●
The costs are expected to be recouped through successful development and exploitation of the area of interest or;
●
The activities in the area of interest at the reporting date have not reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation
to, the area of interest, are continuing.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
32
Accumulated acquisition costs in relation to an abandoned area are written off in full to the statement of profit or loss and
other comprehensive income in the year in which the decision to abandon the area is made.
The carrying values of acquisition costs are reviewed for impairment when events or changes in circumstances indicate the
carrying value may not be recoverable. Where a decision has been made to proceed with development in respect of an area
of interest the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
The Group has elected to capitalise all acquisition costs for its areas of interest and all ongoing exploration and evaluation
expenditure with the exception of the Minim Martap project where the expenditure is expensed during the renewal phase.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds
its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
cash-generating unit.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
●
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
33
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period,
any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is
treated as if they were a modification.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the Group for the annual reporting period ended 30 June 2024. The Group has not yet assessed
the impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees and consultants where the fair value of the services
provided cannot be estimated by reference to the fair value of the equity instruments at the date at which they are granted.
The fair value is determined using either a Black and Scholes model or a Hoadley Trinomial barrier option models and is based
on assumptions disclosed in periods disclosed when the equity instruments are granted.
Exploration and evaluation costs
The recoverability of the carrying amount of exploration and evaluation costs carried forward have been reviewed by the
directors. In conducting the review, the recoverable amount has been assessed by reference to the higher of “fair value less
costs to sell” and “value in use”. In determining value in use, future cash flows are based on various parameters.
Variations to expected future cash flows and timing thereof, could result in significant changes to the impairment test results,
which in turn could impact future financial results.
Note 4. Operating segments
The Group is managed primarily on the basis of its exploration projects. Operating segments are therefore determined on the
same basis. Reportable segments disclosed are based on aggregating tenements and permits where the tenements and permits
are considered to form a single project. This is indicated by:
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 4. Operating segments (continued)
34
●
having the same ownership structure;
●
exploration being focused on the same mineral or type of mineral;
●
exploration programs targeting the tenements and permits as a group, indicated by the use of the same exploration team,
and shared geological data, knowledge and confidence across the areas; and
●
shared mining economic considerations such as mineralisation, metallurgy, marketing, legal, environmental, social and
government factors.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision maker with respect to
operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual
financial statements of the Group.
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic
value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and
physical location.
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets and intangible assets
have not been allocated to operating segments.
The following table presents the profit & loss and assets & liabilities information by segment:
Exploration Unallocated
(Africa)
(Corporate)
Total
30 June 2024
$
$
$
Segment revenue
356
611,480
611,836
Expenses
(7,737,340)
(2,413,164)
(10,150,504)
Loss before income tax expense
(7,736,984)
(1,801,684)
(9,538,668)
Income tax expense
-
Loss after income tax expense
(9,538,668)
Material items include:
Depreciation
(97,142)
(353)
(97,495)
Share-based payments
-
(107,858)
(107,858)
Interest revenue
356
611,480
611,836
Assets
Segment assets
22,803,873
21,732,670
44,536,543
Total assets
44,536,543
Liabilities
Segment liabilities
90,991
576,548
667,539
Total liabilities
667,539
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 4. Operating segments (continued)
35
Exploration Unallocated
(Africa)
(Corporate)
Total
30 June 2023
$
$
$
Segment revenue
22,837
170,040
192,877
Expenses
(2,688,879)
(2,490,709)
(5,179,588)
Loss before income tax expense
(2,666,042)
(2,320,669)
(4,986,711)
Income tax expense
-
Loss after income tax expense
(4,986,711)
Material items include:
Depreciation
(58,933)
(514)
(59,447)
Share-based payments
-
(394,398)
(394,398)
Interest revenue
-
170,263
170,263
Assets
Segment assets
18,744,786
10,836,477
29,581,263
Total assets
29,581,263
Liabilities
Segment liabilities
388,147
353,748
741,895
Total liabilities
741,895
Note 5. Other income
30 June 2024 30 June 2023
$
$
Net foreign exchange gain
-
22,614
Note 6. Income tax expense
30 June 2024 30 June 2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(9,538,668)
(4,986,711)
Tax at the statutory tax rate of 30%
(2,861,600)
(1,496,013)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Sundry items
-
51
(2,861,600)
(1,495,962)
Tax impact of overseas jurisdictions
(232,110)
-
Tax effect amounts which are not deductible in calculating taxable income
462,890
-
Movement in unrecognised temporary differences
(170,868)
(120,236)
Tax effect of current year tax losses for which no deferred tax asset has been recognised
2,801,688
1,616,198
Income tax expense
-
-
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 6. Income tax expense (continued)
36
30 June 2024 30 June 2023
$
$
Deferred tax balances not recognised
Deferred tax balances not recognised comprises temporary differences attributable to:
Australian tax losses
13,770,013
14,154,663
Provisions
8,757
9,052
Accrued expenses
7,650
9,872
Exploration expenditure
-
(1,200,192)
Capital raising costs
188,301
165,611
Other
(26,789)
-
Net deferred tax assets not recognised
13,947,932
13,139,006
The potential deferred tax benefit of tax losses has not been recognised as an asset because recovery of tax losses is not
considered probable in the context of AASB 112 Income Taxes. The benefit of these tax losses will only be realised if:
(a) The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
deduction for the losses to be realised.
(b) The Company complies with the conditions for deductibility imposed by the law; and
(c) No changes in tax legislation adversely affect the Company in realising the benefit from the deduction for the loss.
Ultimately, recoverability of tax losses in the future is subject to the ability of the Group to satisfy the relevant tax authority’s
criteria for using the losses, either by satisfying the Continuity of Ownership Test or the Business Continuity Test. As at the date
of this signed report, the Group’s formal assessments of recoverability are in progress.
Note 7. Cash and cash equivalents
30 June 2024 30 June 2023
$
$
Current assets
Cash on hand
722
51
Cash at bank
2,765,096
1,726,148
Cash on deposit
19,400,000
9,000,000
22,165,818
10,726,199
Note 8. Trade and other receivables
30 June 2024 30 June 2023
$
$
Current assets
Other receivables
50,767
27,578
Interest receivable
303,597
36,093
BAS receivable
48,839
118,977
403,203
182,648
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
37
Note 9. Other assets
30 June 2024 30 June 2023
$
$
Current assets
Prepayments
89,298
89,422
Other deposits
-
277,749
Other current assets
-
34,471
89,298
401,642
Non-current assets
Other deposits
282,288
-
371,586
401,642
Other deposits includes surety bonds paid to the Cameroon Ministry of Mines in relation to the 3 Minim Martap Licences.
Note 10. Plant and equipment
30 June 2024 30 June 2023
$
$
Non-current assets
Plant and equipment - at cost
705,924
567,670
Less: Accumulated depreciation
(434,904)
(382,717)
271,020
184,953
Computer equipment - at cost
521,659
66,047
Less: Accumulated depreciation
(77,337)
(54,471)
444,322
11,576
Office equipment - at cost
618,187
61,670
Less: Accumulated depreciation
(87,180)
(61,138)
531,007
532
1,246,349
197,061
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 10. Plant and equipment (continued)
38
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Office
Computer
Field
equipment equipment equipment
Total
$
$
$
$
Balance at 1 July 2022
3,136
15,487
220,556
239,179
Additions
33,040
4,622
2,840
40,502
Disposals
(33,040)
(1,017)
-
(34,057)
Exchange differences
92
(2,315)
13,107
10,884
Depreciation expense
(2,696)
(5,201)
(51,550)
(59,447)
Balance at 30 June 2023
532
11,576
184,953
197,061
Additions
553,466
452,930
117,340
1,123,736
Exchange differences
(491)
1,943
21,595
23,047
Depreciation expense
(22,500)
(22,127)
(52,868)
(97,495)
Balance at 30 June 2024
531,007
444,322
271,020
1,246,349
Note 11. Capitalised exploration expenditure
30 June 2024 30 June 2023
$
$
Non-current assets
Exploration and evaluation phase - Minim Martap
20,349,587
18,073,713
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
$
Balance at 1 July 2022
16,424,121
Expenditure during the year
1,339,481
Exchange differences
860,111
Impairment of assets 1
(550,000)
Balance at 30 June 2023
18,073,713
Expenditure during the year
2,380,052
Exchange differences
(104,178)
Balance at 30 June 2024
20,349,587
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent
on successful development and commercial exploitation or sale of the respective areas.
1 Earn in arrangements in relation to the Birsok Bauxite Project in Cameroon were terminated.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 11. Capitalised exploration expenditure (continued)
39
As the Minim Martap tenements expired and were in the process of being renewed during the period, expenditure incurred
of $5,919,102 (2022: $794,883), as well as acquisition costs, are required to be expensed until such time that the renewals
are finalised, in accordance with the Group's accounting policy.
Confirmation was received that the Makan and Ngaoundal research permits were extended for an additional two years on 25
February 2022, whilst the mining convention negotiations continue for Minim Martap. Expenditure on the Makan and
Ngaoundal exploration permits commenced to be capitalised from 22 February 2022 to 22 February 2024.
Note 12. Trade and other payables
30 June 2024 30 June 2023
$
$
Current liabilities
Trade payables
323,070
680,604
Other payables
315,279
28,376
638,349
708,980
Note 13. Provisions
30 June 2024 30 June 2023
$
$
Current liabilities
Annual leave
29,190
32,915
Note 14. Issued capital
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Shares
Shares
$
$
Ordinary shares - fully paid
1,374,404,793 1,015,766,507 113,523,106
89,004,240
Movements in ordinary share capital
Details
Date
Shares
$
Balance
1 July 2022
806,422,064
76,733,044
Shares issued for cash
7 September 2022
5,444,443
$0.045
245,000
Shares issued for cash
22 December 2022
202,900,000
$0.060
12,174,000
Performance rights converted
15 March 2023
1,000,000
$0.000
90,000
Cost of share issues
(237,804)
Balance
30 June 2023
1,015,766,507
89,004,240
Shares issued for cash (i)
27 December 2023
150,000,000
$0.070
10,500,000
Conversion of options (ii)
27 December 2023
202,900,000
$0.070
14,203,000
Conversion of options (ii)
19 February 2024
3,896,004
$0.070
272,720
Conversion of options (ii)
28 February 2024
47,676
$0.070
3,337
Conversion of performance rights
19 February 2024
1,000,000
$0.000
90,000
Conversion of options (ii)
1 May 2024
794,606
$0.070
55,622
Cost of share issues
(605,813)
Balance
30 June 2024
1,374,404,793
113,523,106
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 14. Issued capital (continued)
40
(i) As part of the issue of 150,000,000 ordinary shares to Eagle Eye Asset Holdings Pte Ltd ('EEA') on 27 December 2023, EEA
was issued 500,000,000 unlisted options with an exercise price of $0.07 on or before 26 December 2026.
(ii) The following options were converted during the year:
202,900,000 exercisable at $0.07 each on or before 10 August 2025
4,738,286 exercisable at $0.07 each on or before 10 August 2024
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does
not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Capital risk management
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide
returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost
of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as
total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative
to the current Company's share price at the time of the investment. The Group is not actively pursuing additional investments
in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
The Group is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
Note 15. Reserves
30 June 2024 30 June 2023
$
$
Foreign currency reserve
91,800
60,220
Share-based payments reserve
6,798,725
6,780,867
6,890,525
6,841,087
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration,
and other parties as part of their compensation for services.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 15. Reserves (continued)
41
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Share based
Foreign
payment
reserve
currency
translation
Total
$
$
$
Balance at 1 July 2022
6,476,469
(786,966)
5,689,503
Revaluation - gross
-
847,186
847,186
Performance rights issued to directors/employees
341,374
-
341,374
Performance shares converted
(90,000)
-
(90,000)
Issue of options
53,024
-
53,024
Balance at 30 June 2023
6,780,867
60,220
6,841,087
Revaluation - gross
-
31,580
31,580
Performance rights issued to directors/employees
107,858
-
107,858
Performance shares converted
(90,000)
-
(90,000)
Balance at 30 June 2024
6,798,725
91,800
6,890,525
Note 16. Accumulated losses
30 June 2024 30 June 2023
$
$
Accumulated losses at the beginning of the financial year
(67,005,959)
(62,019,248)
Loss after income tax expense for the year
(9,538,668)
(4,986,711)
Accumulated losses at the end of the financial year
(76,544,627)
(67,005,959)
Note 17. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 18. Financial instruments
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk)and liquidity risk.
Market risk
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through
foreign exchange rate fluctuations.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 18. Financial instruments (continued)
42
The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the reporting date
were as follows:
Assets
Liabilities
30 June 2024 30 June 2023 30 June 2024 30 June 2023
$
$
$
$
US dollars
-
-
135,528
300,181
Pound Sterling
-
-
-
36,211
Central African Franc
927,060
90,991
90,991
125,532
927,060
90,991
226,519
461,924
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents)
and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and forecast cash
flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
30 June 2024
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
323,070
-
-
-
323,070
Other payables
-
315,279
-
-
-
315,279
Total non-derivatives
638,349
-
-
-
638,349
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
30 June 2023
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
680,604
-
-
-
680,604
Other payables
-
28,376
-
-
-
28,376
Total non-derivatives
708,980
-
-
-
708,980
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
43
Note 19. Key management personnel disclosures
Directors
The following persons were Directors of Canyon Resources Limited during the financial year:
Mark Hohnen
Executive Chairman (appointed 1 April 2024 previously Non-Executive Chairman)
Gaurav Gupta
Non-Executive Director (appointed 29 November 2023)
David Netherway
Non-Executive Director
Scott Phegan
Non-Executive Director
Peter Su
Non-Executive Director
Other key management personnel
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the
Group, directly or indirectly, during the financial year:
Jean-Sebastien Boutet
Chief Executive Officer
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out
below:
30 June 2024 30 June 2023
$
$
Short-term employee benefits
686,712
1,198,507
Post-employment benefits
4,955
4,298
Long-term benefits
-
(60,000)
Share-based payments
107,858
394,398
799,525
1,537,203
Note 20. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by HLB Mann Judd, the auditor of the
Company:
30 June 2024 30 June 2023
$
$
Audit services - HLB Mann Judd
Audit or review of the financial statements
62,536
52,486
Note 21. Contingent liabilities
There are no contingencies outstanding as at 30 June 2024.
Note 22. Related party transactions
Parent entity
Canyon Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report included in the Directors'
report.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
44
Note 23. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
30 June 2024 30 June 2023
$
$
Loss after income tax
(13,863,331)
(6,186,554)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss
(13,863,331)
(6,186,554)
Statement of financial position
Parent
30 June 2024 30 June 2023
$
$
Total current assets
21,731,260
10,834,715
Total assets
27,194,491
16,298,298
Total current liabilities
576,548
353,748
Total liabilities
576,548
353,748
Net assets
26,617,943
15,944,550
Equity
Issued capital
113,523,106
89,004,240
Share-based payments reserve
6,798,725
6,780,867
Accumulated losses
(93,703,888)
(79,840,557)
Total equity
26,617,943
15,944,550
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
45
Note 24. Interests in 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:
Ownership interest
Principal place of business /
30 June 2024 30 June 2023
Name
Country of incorporation
%
%
Canyon Neufco Pty Ltd
Australia
100%
100%
Canyon West Africa Pty Ltd
Australia
100%
100%
Askia Sarl Pty Ltd
Australia
100%
100%
Canyon Derosa Pty Ltd
Australia
100%
100%
Canyon Cameroon Pty Ltd
Australia
100%
100%
Askia Minerals Sarl
Burkina Faso
100%
100%
Canyon West Africa Sarl
Burkina Faso
100%
100%
CSO Sarl
Burkina Faso
100%
100%
Deorsa Sarl
Burkina Faso
100%
100%
Camalco SA
Cameroon
100%
100%
Camalco Holdings Ltd
British Virgin Islands
100%
100%
Canyon Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
Note 25. Events after the reporting period
39,479,493 options exercisable at $0.07 each on or before 10 August 2024 were converted to fully paid ordinary shares,
raising $2,763,565.
65,863,019 options exercisable at $0.07 each expired unexercised on 10 August 2024.
On 1 August 2024 Mr Dondo Mogajane was appointed as Non-Executive Director and Mr David Netherway resigned as Non-
Executive Director.
The Company held a shareholders’ meeting on 9 September 2024 for the grant of options to Mr Mark Hohnen all resolutions
were approved. The options have not yet been issued to Mr Hohnen.
The signing of the Mining Convention for the Minin-Martap Bauxite Project in Cameroon was signed on 31 July 2024 along with
the signing of the Mining Licence on 16 September 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
46
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
30 June 2024 30 June 2023
$
$
Loss after income tax expense for the year
(9,538,668)
(4,986,711)
Adjustments for:
Depreciation and amortisation
97,495
59,447
Impairment of plant and equipment
-
33,040
Net loss on disposal of property, plant and equipment
-
1,017
Share-based payments
107,858
394,398
Foreign exchange differences
24,530
(22,614)
Impairment of exploration and evaluation
-
550,000
Change in operating assets and liabilities:
Increase in trade and other receivables
(220,555)
(131,397)
Decrease/(increase) in other operating assets
30,056
(8,545)
Decrease in trade and other payables
(70,631)
(352,309)
Decrease in employee benefits
(3,725)
(88,512)
Net cash used in operating activities
(9,573,640)
(4,552,186)
Note 27. Non-cash investing and financing activities
30 June 2024 30 June 2023
$
$
Issue of performance rights to directors and employees (refer note 28)
107,858
259,680
Options issued to directors (refer note 28)
-
53,024
107,858
312,704
Note 28. Share-based payments
Performance rights
CEO Jean-Sebastien Boutet was issued 10,000,000 Performance Rights on 18 July 2022. The Performance Rights were issued
for nil cash consideration and are convertible into fully paid ordinary shares in the capital of the Company on the terms and
conditions under the Canyon Long Term Incentive Plan and subject to the following Vesting Conditions:
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 28. Share-based payments (continued)
47
Tranche
Vesting conditions
Share Price
Employment
Tenure
Project
Milestones
1
Achievement of a 10-day Volume Weighted Average
Price ('VWAP') of $0.10
1,000,000
-
-
2
Achievement of a 10-day VWAP of $0.15
1,000,000
-
-
3
Achievement of a 10-day VWAP of $0.20
1,000,000
-
-
4
Achievement of a 10-day VWAP of $0.25
1,000,000
-
-
5
12 months continuous employment
-
1,000,000
-
6
24 months continuous employment
-
1,000,000
-
7
36 months continuous employment
-
1,000,000
-
8
Fully approved mining licence
-
-
1,000,000
9
Complete rail access agreement
-
-
1,000,000
10
Executed binding off take agreement for minimum 2MT
for a 12 month period
-
-
1,000,000
4,000,000
3,000,000
3,000,000
These performance rights were valued, using a valuation methodology based on the guidelines set out in AASB 2 Share-based
Payment.
Assumptions:
Share price vesting conditions
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Number of performance rights
1,000,000
1,000,000
1,000,000
1,000,000
Valuation date
1 January 2022
1 January 2022
1 January 2022
1 January 2022
Interest rate
1.85%
1.85%
1.85%
1.85%
Volatility rate
100%
100%
100%
100%
Share price on valuation date
$0.096
$0.096
$0.096
$0.096
Indicative value per Performance Right
$0.084
$0.075
$0.0711
$0.070
- Mr Jean-Sebastien Boutet
$84,300
$74,900
$71,100
$69,700
Vesting share price
$0.100
$0.150
$0.200
$0.250
Assumptions:
Employment tenure conditions
Tranche 5
Tranche 6
Tranche 7
Number of performance rights
1,000,000
1,000,000
1,000,000
Valuation date
1 January 2022
1 January 2022
1 January 2022
10 day VWAP
$0.090
$0.090
$0.090
Indicative value per Performance Right
$0.090
$0.090
$0.090
- Mr Jean-Sebastien Boutet
$90,000
$90,000
$90,000
Assumptions:
Project Milestone
Tranche 8
Tranche 9
Tranche 10
Number of performance rights
1,000,000
1,000,000
1,000,000
Valuation date
1 January 2022
1 January 2022
1 January 2022
10 day VWAP
$0.090
$0.090
$0.090
Indicative value per Performance Right
$0.090
$0.090
$0.090
- Mr Jean-Sebastien Boutet
$90,000
$90,000
$90,000
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 28. Share-based payments (continued)
48
The value of the Performance Rights is being expensed over the deemed life of the Rights. During the period $107,858 (2023:
$341,374) was recognised as an expense in relation to the rights.
Tranche 5 have vested and were converted to ordinary shares on 15 March 2023, and Tranche 6 vested and were converted
to ordinary shares on 4 March 2024.
Set out below are summaries of performance rights granted under the plan:
Number of rights
30 June 2024 30 June 2023
Outstanding at the beginning of the financial year
9,000,000
10,000,000
Exercised
(1,000,000)
(1,000,000)
Outstanding at the end of the financial year
8,000,000
9,000,000
Options
A share option plan has been established by the Group and approved by shareholders at a general meeting, whereby the Group
may, at the discretion of the Nomination and Remuneration Committee, grant options over ordinary shares in the Company to
certain key management personnel of the Group. The options are issued for nil consideration and are granted in accordance
with performance guidelines established by the Nomination and Remuneration Committee.
Set out below are summaries of options granted under the plan:
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
30 June 2024 30 June 2024 30 June 2023 30 June 2023
Outstanding at the beginning of the financial year
3,000,000
$0.127
4,000,000
$0.200
Granted
-
$0.000
3,000,000
$0.127
Expired
-
$0.000
(4,000,000)
$0.200
Outstanding at the end of the financial year
3,000,000
$0.127
3,000,000
$0.127
Exercisable at the end of the financial year
3,000,000
$0.127
3,000,000
$0.127
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.5 years.
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
Exercise price
Number
21 November 2022
2 December 2025
$0.09
1,000,000
21 November 2022
2 December 2025
$0.12
1,000,000
21 November 2022
2 December 2025
$0.17
1,000,000
3,000,000
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2024
Note 28. Share-based payments (continued)
49
30 June 2024 30 June 2023
$
$
Total value expensed in profit and loss
Director options
-
53,024
Performance rights issued to employees
107,858
341,374
107,858
394,398
Note 29. Loss per share
30 June 2024 30 June 2023
$
$
Loss after income tax
(9,538,668)
(4,986,711)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,198,001,073
917,323,159
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,198,001,073
917,323,159
Cents
Cents
Basic loss per share
(0.80)
(0.54)
Diluted loss per share
(0.80)
(0.54)
Canyon Resources Limited
Consolidated entity disclosure statement
As at 30 June 2024
50
Name of entity
Type of entity
Trustee,
partner or
participant in
JV
% of share
capital
Place of
incorporation
Australian
resident or
foreign resident
Foreign
jurisdiction(s)
of foreign
residents
Canyon Neufco Pty Ltd
Body corporate
-
100%
Australia
Australian
n/a
Canyon West Africa Pty Ltd
Body corporate
-
100%
Australia
Australian
n/a
Askia Sarl Pty Ltd
Body corporate
-
100%
Australia
Australian
n/a
Canyon Derosa Pty Ltd
Body corporate
-
100%
Australia
Australian
n/a
Canyon Cameroon Pty Ltd
Body corporate
-
100%
Australia
Australian
n/a
Askia Minerals Sarl
Body corporate
-
100%
Burkina Faso
Australian &
Foreign
Burkina Faso
Canyon West Africa Sarl
Body corporate
-
100%
Burkina Faso
Australian &
Foreign
Burkina Faso
CSO Sarl
Body corporate
-
100%
Burkina Faso
Australian &
Foreign
Burkina Faso
Deorsa Sarl
Body corporate
-
100%
Burkina Faso
Australian &
Foreign
Burkina Faso
Camalco SA
Body corporate
-
100%
Cameroon
Foreign
Cameroon
Camalco Holdings Ltd
Body corporate
-
100%
British Virgin
Islands
Australian &
Foreign
British Virgin
Islands
Canyon Resources Limited
Body corporate
-
n/a
Australia
Australian
n/a
Canyon Resources Limited
Directors' declaration
30 June 2024
51
In the Directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2024
and of its performance for the financial year ended on that date;
●
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mark Hohnen
Executive Chairman
30 September 2024
52
INDEPENDENT AUDITOR’S REPORT
To the Members of Canyon Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Canyon Resources Limited (“the Company”) and its controlled entities
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes to the financial
statements, including material accounting policy information, the consolidated entity disclosure statement
and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our
report.
53
Key Audit Matter
How our audit addressed the key audit matter
Capitalised exploration expenditure
Refer to Note 11
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group
capitalises
all
exploration
and
evaluation
expenditure that meets the capitalisation criteria for
its current projects, and subsequently it applies the
cost model after recognition.
Our audit focused on the Group’s assessment of the
carrying amount of the capitalised exploration asset,
as this is one of the most material assets of the
Group. Our work addressed the risk that the
capitalised expenditure may no longer meet the
recognition criteria of AASB 6. In addition, we
considered it necessary to assess whether facts and
circumstances existed to suggest the carrying
amount of the capitalised exploration expenditure
asset may exceed its recoverable amount.
Our procedures include but were not limited to:
• Obtaining an understanding of the key
processes associated with management’s
review of the carrying values of each area of
interest;
• Considering management’s assessment of
potential impairment indicators in addition to
making our own assessment;
• Obtaining evidence that the Group has current
rights to tenure over its areas of interest, or if
the period of tenure has expired, whether there
is an expectation that the right to explore will be
renewed;
• Considering the nature and extent of planned or
budgeted activities;
• Substantiating a sample of expenditure by
agreeing to supporting documentation; and
• Examining the disclosures made in the financial
report.
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 2024, 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.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
54
(b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct 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 have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with 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.
55
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, actions taken to eliminate threats
or safeguards applied.
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 on the Remuneration Report
We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of Canyon Resources Limited for the year ended 30 June 2024
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.
HLB Mann Judd
L Di Giallonardo
Chartered Accountants
Partner
Perth, Western Australia
30 September 2024
Canyon Resources Limited
Corporate governance statement
30 June 2024
56
Corporate Governance Statement
In fulfilling its obligations and responsibilities to its various stakeholders, the Board is a strong advocate of corporate
governance. This statement outlines the principle corporate governance of Canyon Resources Limited. The Board of Directors
(“Board”) supports a system of corporate governance to ensure that the management of Canyon Resources Limited is
conducted to maximise shareholder wealth in a proper and ethical manner.
ASX Corporate Governance Council Recommendations
The Board has adopted corporate governance policies and practices consistent with the ASX Corporate Governance Council’s
Principles of Good Corporate Governance and Best Practice Recommendations (“ASX Principles and Recommendations 4th
Edition”) where considered appropriate for the Group’s size and nature. Such policies include, but are not limited to the Board
Charter, Board Committee Charters, Code of Conduct, Trading in Securities, Continuous Disclosure, Shareholder
Communication and Risk Management Policies.
Further details in respect to the Group’s corporate governance practices and copies of the Group’s corporate governance
polices and the Corporate Governance Statement, approved by the Board, are available on the Group’s website:
https://canyonresources.com.au/corporate/corporate-governance/
Canyon Resources Limited
Shareholder information
30 June 2024
57
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report is set out
below.
1.
Shareholdings
The issued capital of the Company as at 24 September 2024 is 1,413,884,286 ordinary fully paid shares (details
below). All issued ordinary fully paid shares carry one vote per share.
Ordinary Shares
Holding Ranges
Holders
Total Units
% Issued Share
Capital
above 0 up to and including 1,000
88
9,313
0.00
above 1,000 up to and including 5,000
176
670,356
0.05
above 5,000 up to and including
10,000
352
2,920,398
0.21
above 10,000 up to and including
100,000
1,119
46,404,713
3.28
above 100,000
787
1,363,879,506
96.46
Totals
2,522
1,413,884,286
100.00
Unmarketable parcels
The number of shareholdings held in less than marketable parcels is 267.
2.
Top 20 Shareholders as at 24 September 2024
Position
Holder Name
Holding
% IC
1
CITICORP NOMINEES PTY LIMITED
569,486,123
40.28
2
WMA HOLDING FZCO
107,565,326
7.61
3
SKYLINE CORPORATION PTY LTD
60,000,000
4.24
4
MR GAUTAM KUMAR SARRAF
41,906,000
2.96
5
IBT DIRECTIONS PTY LTD
24,499,839
1.73
6
BLUETAIL INVESTMENTS PTY LTD
14,188,888
1.00
7
ZERO NOMINEES PTY LTD
11,850,073
0.84
8
MR JOHN COLIN LOOSEMORE + MRS SUSAN MARJORY LOOSEMORE
11,674,950
0.83
9
MR CHRISTOPHER JOHN SQUIERS + MR ADRIAN CHRISTOPHER
SQUIERS + MR SASCHA TROY SQUIERS
9,070,731
0.64
10
LIGHTVIEW ASSET PTY LTD
8,500,000
0.60
11
MS WINNIE CHI WONG
8,072,655
0.57
12
BARCLAY WELLS LTD
8,053,149
0.57
13
SHIRLEE DOWNS NOMINEES PTY LTD
7,343,539
0.52
14
MR MICHAEL ARTHUR PARISH
7,100,000
0.50
15
MR MARX LIN
6,496,390
0.46
16
MR RAN SHAHAR
6,343,943
0.45
17
MR HOWIE JAMES FITZMAURICE
5,900,000
0.42
18
WIDERANGE CORPORATION PTY LTD
5,400,000
0.38
19
MR SIMON GEORGE VOS
5,149,232
0.36
20
MR IAN TREVOR SHOTAM
4,882,000
0.35
Totals
923,482,838
65.32
Total Remaining Holders Balance
490,401,448
34.68
3.
Voting Rights
The voting rights attached to each class of equity security are as follows:
Canyon Resources Limited
Shareholder information
30 June 2024
58
Ordinary Shares
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or
by proxy has one vote on a show of hands.
The company is listed on the Australian Securities Exchange under the code “CAY”.
4.
Substantial shareholders as at 24 September 2024
Name
Number of
Shares Held
Percentage
Eagle Eye Asset Holdings Pte. Ltd
555,800,000
40.61%
WMA Holding FZCO
107,565,326
7.61%
5.
Unquoted securities
Number
Terms
1,000,000
O14 - UNL OPTS EXP 02/12/25 @ $0.09
1,000,000
O15 - UNL OPTS EXP 02/12/25 @ $0.12
1,000,000
O16 - UNL OPTS EXP 02/12/25 @ $0.17
500,000,000
O18 - UNL OPT EXP 26/12/26 @ $0.07
9,000,000
PE1 - PERFORMANCE RIGHTS
6.
Unquoted securities holders with greater than 20% of an individual class
Holder
O14 - UNL
OPTS EXP
02/12/25 @
$0.09
O15 - UNL
OPTS EXP
02/12/25 @
$0.12
O16 - UNL
OPTS EXP
02/12/25 @
$0.17
O18 - UNL OPT
EXP 26/12/26
@ $0.07
EAGLE EYE ASSET
HOLDINGS PTE LTD
-
-
-
500,000,000
FERNAN PTY LTD
1,000,000
1,000,000
1,000,000
-
Total number of
holders
1
1
1
1
Total holdings over 20%
1
1
1
1
Other holder
-
-
-
-
TOTAL
1
1
1
1
Canyon Resources Limited
Shareholder information
30 June 2024
59
7.
Restricted securities subject to escrow period
No ordinary shares are subject to escrow.
8.
On-market buyback
There is currently no on-market buyback program for any of Canyon Resources Limited’s listed securities.
Canyon Resources Limited
Interests in mineral permits
30 June 2024
60
Interest in Mineral Permits
Interest in, situation of and percentage interest in mineral permits held are:
PERMITS
Ministry Order Number
LICENCE
NUMBER
LOCATION
AREA
(KM2)
STATUS
BENEFICIAL
INTEREST
MINIM
MARTAP
PROJECT
Ngaoundal
AR000069/A/MINMIDT/SG/DM/SDCM of
February 25, 2022
514
Cameroon
180
Live
100%
Minim
Martap
AR000476BIS/A/MINMIDT/SG/DM/SDCM
of July 11, 2018
513
Cameroon
499
Live
100%
Makan
AR000068/A/MINMIDT/SG/DM/SDCM of
February 25, 2022
566
Cameroon
302
Live
100%