A N N U A L
R E P O R T
2022
CCoorrppoorraattee ddiirreeccttoorryy
AABBNN
84 121 700 105
DDiirreeccttoorrss
Mark Clark – Executive Chairman
Mark Okeby – Non-Executive Director
Myles Ertzen – Non-Executive Director
Bernard De Araugo – Non-Executive Director
CCoommppaannyy SSeeccrreettaarryy
Kim Massey
RReeggiisstteerreedd OOffffiiccee && PPrriinncciippaall PPllaaccee ooff BBuussiinneessss
Level 3, 40 Kings Park Road
West Perth WA 6000
Telephone:
+61 8 9212 4600
Email:
enquiries@capmet.com.au
Website:
capmetals.com.au
SShhaarree RReeggiissttrryy
Automic Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
Telephone:
+61 2 9698 5414 or 1300 288 664
AAuuddiittoorrss
KPMG Perth
235 St Georges Terrace
PERTH WA 6000
SSeeccuurriittiieess EExxcchhaannggee LLiissttiinngg
Capricorn Metals Ltd shares are listed on the Australian
Securities Exchange (ASX).
CCooddee
CMM
Processing plant at Karlawinda Gold Project
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CCoonntteennttss
Chairman’s report
Highlights
Directors’ report
Remuneration report (Audited)
Auditor’s independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor’s report
ASX additional information
3
4
9
19
30
31
32
33
34
35
69
70
75
Bibra pit
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CAPRICORN METALS LTD - Annual Report
CHAIRMAN’S
REPORT
CChhaaiirrmmaann’’ss rreeppoorrtt
Dear Shareholder
Dear Shareholder
I write to you at a time of deep sadness for Capricorn and its mining contractor MACA Ltd. It was only very recently that
I write to you at a time of deep sadness for Capricorn and its mining contractor MACA Ltd. It was only very recently that
we reported a significant incident at the Karlawinda Gold Project (‘KGP’) that tragically claimed the life of an employee of
we reported a significant incident at the Karlawinda Gold Project (‘KGP’) that tragically claimed the life of an employee
MACA. Everyone at Capricorn is shocked and saddened by the fatality. Our deepest thoughts and condolences go out to
of MACA. Everyone at Capricorn is shocked and saddened by the fatality. Our deepest thoughts and condolences go
the MACA employee’s family, friends and colleagues.
out to the MACA employee’s family, friends and colleagues.
The financial year just completed was Capricorn’s first year as a gold producer. The first gold bar from the KGP in the
The financial year just completed was Capricorn’s first year as a gold producer. The first gold bar from the KGP in the
Pilbara region of WA was poured on 30 June 2021. It is a credit to our operations team that the project achieved all its
Pilbara region of WA was poured on 30 June 2021. It is a credit to our operations team that the project achieved all
KPI’s and moved to steady state production in the first quarter of processing. In the full year to 30 June 2022 the Company
its KPI’s and moved to steady state production in the first quarter of processing. In the full year to 30 June 2022 the
produced 118,432 ounces of gold. The all-in sustaining cost of production of A$1,112 per ounce established Capricorn
Company produced 118,432 ounces of gold. The all-in sustaining cost of production of A$1,112 per ounce established
as a low-cost producer in the Australian gold industry.
Capricorn as a low-cost producer in the Australian gold industry.
These results were all the more impressive given the very significant cost
These results were all the more impressive given the very significant
pressures experienced in the Australian mining industry over the last 12
cost pressures experienced in the Australian mining industry over
months. Cost inflation in many of the inputs to the operation has had an
the last 12 months. Cost inflation in many of the inputs to the
effect but we continue to look for ways to manage and reduce its impact.
operation has had an effect but we continue to look for ways to
We are fortunate that the KGP processing plant is powered with natural gas
manage and reduce its impact. We are fortunate that the KGP
via the Kalgoorlie gas pipeline. To date, unlike in other states of Australia,
processing plant is powered with natural gas via the Kalgoorlie gas
the WA gas price has remained relatively stable. We will continue to
pipeline. To date, unlike in other states of Australia, the WA gas
actively manage our costs and like all miners have some optimism that
price has remained relatively stable. We will continue to actively
we may see the beginnings of easing of cost pressure in the current year.
manage our costs and like all miners have some optimism that we
may see the beginnings of easing of cost pressure in the current
year.
Capricorn’s wholly owned Mt Gibson Gold Project (‘MGGP’) in the Murchison
region of WA, acquired in July 2021, is emerging as a very exciting
development proposition for the Company. All the key mining tenure was
granted in December 2021 and in January 2022 we commenced a major
drill programme to infill and extend the 2.1 million ounce JORC compliant
gold resource. We have had up to three drill rigs operating continuously
and at the date of writing we have drilled in excess of 110,000 metres. This
intensive effort has been very well managed by Capricorn’s exploration
team.
Capricorn’s wholly owned Mt Gibson Gold Project (‘MGGP’) in the
Murchison region of WA, acquired in July 2021, is emerging as a
very exciting development proposition for the Company. All the key
mining tenure was granted in December 2021 and in January 2022
we commenced a major drill programme to infill and extend the 2.1
million ounce JORC compliant gold resource. We have had up to
three drill rigs operating continuously and at the date of writing we
have drilled in excess of 110,000 metres. This intensive effort has
been very well managed by Capricorn’s exploration team.
Numerous significant assay results have been reported at MGGP during
the year both within and extensional to the resource envelop. We look
forward to updating the resource and estimating a maiden reserve
which will underpin a feasibility study and ultimately a development
decision by the board.
Map showing Capricorn’s project locations
Map showing Capricorn’s project locations
Numerous significant assay results have been reported at MGGP during the year both within and extensional to the
resource envelop. We look forward to updating the resource and estimating a maiden reserve which will underpin a
Our regional exploration efforts at both projects are expected to gather pace in FY2023 with access to high priority drill
feasibility study and ultimately a development decision by the board.
targets expected through the heritage survey process. Any new gold discovery within trucking distance of an operating
processing plant has the potential to add mine life and value to the Company’s projects. With this in mind, we never lose
Our regional exploration efforts at both projects are expected to gather pace in FY2023 with access to high priority drill
sight of the importance of bold but scientifically robust exploration.
targets expected through the heritage survey process. Any new gold discovery within trucking distance of an operating
I would like to thank our dedicated staff for their loyalty and efforts in the past year. These amazing people are the heart
processing plant has the potential to add mine life and value to the Company’s projects. With this in mind, we never lose
and soul of the Company. I would also like to thank our management team for creating the culture that makes people
sight of the importance of bold but scientifically robust exploration.
proud to work at Capricorn and has seen the Company experience much lower than average staff attrition during the
I would like to thank our dedicated staff for their loyalty and efforts in the past year. These amazing people are the heart
last two years of labour shortages and high turnover throughout the mining industry.
and soul of the Company. I would also like to thank our management team for creating the culture that makes people
Finally, I would like to thank you, the shareholders for your support in this volatile year in both the equity and debt
proud to work at Capricorn and has seen the Company experience much lower than average staff attrition during the last
markets. I am excited about the year to come as we pursue our goal to become a high quality, multi mine Australian
two years of labour shortages and high turnover throughout the mining industry.
gold business and trust you are too.
Finally, I would like to thank you, the shareholders for your support in this volatile year in both the equity and debt
markets. I am excited about the year to come as we pursue our goal to become a high quality, multi mine Australian gold
business and trust you are too.
Mark Clark
Executive Chairman
Mark Clark
Executive Chairman
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CAPRICORN METALS LTD - Annual Report
2022 HIGH
LIGHTS
KARLAWINDA GOLD PROJECT (“KGP”)
COMMENCEMENT OF OPERATIONS AND RESULTS
+
+
+
Commissioning and ramp up of operations successfully completed within first quarter of production at KGP with
steady state operations achieved by end of September 2022.
KGP achieves project key performance indicators within the first 6 months of operations and produces 118,432 ounces
of gold during the first year which is at the top end of the production guidance range of 110,000 – 120,000 ounces
Lowest quartile all-in-sustaining costs (‘AISC’) in the Australian gold industry of $1,112 per ounce generates
outstanding operating cashflow of over $141 million for the year
+
Extensive drilling programmes across the KGP tenement package during the year of 773 holes for 58,513 metres
KEY PERFORMANCE
INDICATORS
ACHIEVED WITHIN FIRST 6 MONTHS
OF OPERATIONS
PRODUCTION OF 118,432 OUNCES, AT
TOP END OF GUIDANCE RANGE
AISC IN THE LOWEST QUARTILE OF
THE AUSTRALIAN GOLD INDUSTRY
ROM Loader putting material into the crushing circuit at the
Karlawinda Gold Project
Aerial view of the Karlawinda Gold Project
4
CAPRICORN METALS LTD - Annual Report HIGHLIGHTS
KGP EXPLORATION – RESOURCE UPGRADE AND INFILL AND EXTENSIONAL DRILLING
+
+
Delivered resource and reserve upgrade in October 2022 and identified exciting regional targets
30,000 metre RC programme focussed on extending and infilling the Mineral Resource Estimate (‘MRE’) at KGP
resulting in an upgraded MRE of 2.3 million ounces and upgraded Ore Reserve Estimate (‘ORE’) of 1.3 million ounces
after mining depletion
Drilling progress along KGP 1.8km long mine trend
Aircore rig at Carnoustie prospect
+
Encouraging results returned from resource drilling near the base of, below and along strike of current resource pit
optimisations, which remain open down dip and south along strike, including:
−
−
−
−
10 metres @ 5.04g/t from 99 to 109m
3 metres @ 11.16g/t from 169 to 172m
22 metres @ 1.20g/t from 152 to 174m
18 metres @ 1.40g/t from 140 to 158m
−
−
−
−
18 metres @ 1.36g/t from 197 to 215m
26 metres @ 1.19g/t from 168 to 194m
6 metres @ 4.36g/t from 54 to 60m
26 metres @ 0.97g/t from 175 to 201m
Southern corridor and Tramore cross sections
5
CAPRICORN METALS LTD - Annual Report HIGHLIGHTS
KGP EXPLORATION – REGIONAL DRILLING
+
+
First pass near mine and regional drilling programmes deliver encouraging results with follow-up drilling planned
in the future
Strong results from Muirfield prospect, located 4 kilometres east of Bibra open pit, provide target for potential
satellite project including:
−
−
−
8 metres @ 6.32g/t from 24 to 32m
4 metres @ 1.45g/t from 68 to 72m
4 metres @ 6.44g/t from 92 to 96m
−
−
4 metres @ 1.88g/t from 132 to 136m
12 metres @ 1.24g/t from 44 to 56m
KGP EXPLORATION – MUMBAKINE WELL PROJECT
+
Acquisition of Mumbakine Well Project situated contiguous to the KGP delivers significant additional prospective
tenure and provides further high quality regional exploration targets on the extensive KGP tenement package
Karlawinda regional exploration targets
MT GIBSON GOLD PROJECT (“MGGP”)
ACQUISITION
Acquisition of 2.1 million ounce MGGP in July 2021 for total consideration of $39.6 million comprising $25.6 million
cash payment and $14 million paid by the issue of 7.65 million fully paid ordinary shares in Capricorn and 1% net
smelter royalty for gold production in excess of 90,000 ounces
Consideration paid represents an acquisition cost of less than $20 per resource ounce.
Combined area of 139 square kilometres of tenure (granted and under application) acquired with more than 15
kilometres of strike on the gold bearing Retaliation Greenstone Belt in Murchison Region of Western Australia.
All key mining tenure granted in December 2021 and mining lease granted over the area required for mining
operation in June 2022
+
+
+
+
6
CAPRICORN METALS LTD - Annual Report HIGHLIGHTS
MGGP EXPLORATION - INFILL AND EXTENSIONAL DRILLING
+
80,000 metre RC drill programme commenced in January 2022 to infill drill the resource to 25 x 25 metre spacing
and to test for gaps and extensions between and below the resource pit optimisation shells.
+
Based on successful results, programme was extended to 105,000 metres of drilling
Orion pits (looking north)
MGGP RC drilling at Lexington Pit (looking north)
ACQUISITION OF 2.1 MILLION
OUNCE MGGP FOR TOTAL
CONSIDERATION OF $39.6
MILLION
IN CASH AND
EQUITY AND 1% NET SMELTER
ROYALTY.
PA I D
C O N S I D E R AT I O N
R E P R E S E N T S
A N
A C Q U I S I T I O N C O S T O F
L E S S T H A N $ 2 0 P E R
R E S O U R C E O U N C E .
7
CAPRICORN METALS LTD - Annual Report HIGHLIGHTS
+
Encouraging results returned from this drilling including:
−
−
−
−
−
−
−
−
23 metres @ 5.04g/t from 157 to 180m
4 metres @ 6.40g/t from 126 to 140m
4 metres @ 118.74g/t from 142 to 146m
0 metres @ 6.08g/t from 48 to 58m
6 metres @ 3.15g/t from 170 to 186m
20 metres @ 2.72g/t from 107 to 127m
1 metres @ 6.75g/t from 98 to 109m
2 metres @ 6.85g/t from 144 to 156m
−
−
−
−
−
−
−
8 metres @ 3.65g/t from 149 to 167m
9 metres @ 3.18g/t from 160 to 179m
35 metres @ 1.55g/t from 200 to 235m
24 metres @ 2.27g/t from 256 to 280m
7 metres @ 3.61g/t from 37 to 54m
5 metres @ 17.23g/t from 79 to 84m
34 metres @ 2.93g/t from 121 to 155m
+
+
+
The results received to date confirm the historic 660,000 metre drill database acquired with the project and indicate
the potential for the resource to grow at depth and along strike
Results from this programme will form the basis of an upgraded MRE and maiden ORE
Exciting regional exploration potential as broader tenement package has had limited drilling in the last 30 years
Orion and Saratoga cross sections
CORPORATE
+
+
+
Net profit after tax of $89.5 million from the first 12
months of operations at Karlawinda with EBITDA of
$153.9 million and an EBITDA margin of 54%
The value of cash and bullion increased by $55.6
million to $65.9 million after the repayment of $25
million of debt during the year
Shortly after the end of the financial year the
Company restructured its financing facility with
Macquarie Bank early repaying an additional $15
million and converting the outstanding $50 million
into a general purpose corporate loan facility with a
single bullet repayment in June 2025
First gold bars poured at KGP
8
CAPRICORN METALS LTD - Annual Report DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
The Directors submit the financial report of the Consolidated Group (“the Group” or “Capricorn”), consisting of Capricorn
Metals Ltd (referred to in these financial statements as “Parent” or “Company”) and its wholly owned subsidiaries for the
year ended 30 June 2022 and the audit report thereon, made in accordance with a resolution of the Board.
DDiirreeccttoorrss
The Directors of the Company who held office since 1 July 2021 and up to the date of this report are set out below.
Directors were in office for the entire year unless stated otherwise.
MMrr MMaarrkk CCllaarrkk
B.Bus, CA
EExxeeccuuttiivvee CChhaaiirrmmaann
Appointed 8 July 2019
Mr Clark has over 30 years’ experience in corporate advisory and public company
management.
He was a director of successful Australian gold miner Equigold NL (“Equigold”) from
April 2003 and was Managing Director from December 2005 until Equigold’s $1.2
billion merger with Lihir Gold Ltd in June 2008. Equigold successfully developed and
operated gold mines in both Australia and Ivory Coast.
Mr Clark was appointed Managing Director of Regis Resources Limited (“Regis”) in
May 2009 and Executive Chairman in November 2016. He retired as a director of
Regis in October 2018. Mr Clark oversaw the development of Regis’ three operating
gold mines at the Duketon Gold Project, which culminated in the project producing
well over 300,000 ounces of gold per annum.
Mr Clark is a member of the Chartered Accountants Australia and New Zealand.
Mr Clark is not an independent director.
During the past three years Mr Clark has not held any other listed company
directorships.
MMrr MMaarrkk OOkkeebbyy LLM
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 8 July 2019
Mr Okeby began his career in the resources industry in the 1980s as a corporate
lawyer advising companies on resource project acquisitions, financing, and
development. He has a Masters of Law (LLM) and over 30 years’ experience as a
director of ASX listed mining and exploration companies.
Mr Okeby is currently a director of Red Hill Iron Limited (appointed in 2016) and is
also Non-executive Chairman of Peel Mining Limited (appointed in 2022).
Previously Mr Okeby has been a director of Hill 50 Ltd, Abelle Limited, Metals X
Limited, Westgold Resources Limited, Lynas Corporation Ltd and Regis Resources
Limited.
Mr Okeby is an independent director.
During the past three years Mr Okeby has held the following other listed company
directorships:
• Non-Executive Director of Peel Mining Limited (appointed 3 March 2022)
• Non-Executive Director of Red Hill Iron Limited (August 2015 to present)
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
MMrr MMyylleess EErrttzzeenn
B.Sc Grad Dip App Fin
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 13 September 2019
MMrr BBeerrnnaarrdd DDee AArraauuggoo
B.App.Sc (Metallurgy)
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 26 May 2021
Mr Ertzen was from 2009 until December 2018 a senior executive at Regis Resources
Limited having held project and business development roles, culminating in the role
of Executive General Manager – Growth, from which he resigned in December 2018.
Prior to Regis, Myles held a number of senior operations roles for gold mining and
development companies and has significant experience
in the permitting,
development and operations of gold projects in Western Australia. Myles has
various regulatory and technical qualifications in mining, management and finance.
Mr Ertzen is an independent director.
During the past three years Mr Ertzen has not held any other listed company
directorships.
Mr De Araugo is a qualified metallurgist with over 30 years’ experience in mining
and processing including senior management and technical roles at several gold
mining operations in Australia and overseas. He has held senior leadership roles
across a range of business disciplines
including operations, commercial
management and technical functions at Orica Mining Services and leading
processing consumables supplier Donhad Pty Ltd where he was an Executive
Director for over 12 years.
Mr De Araugo is an independent director.
During the past three years Mr De Araugo has not held any other listed company
directorships.
CCoommppaannyy SSeeccrreettaarryy
The Company Secretary of the Company during the year and up to the date of this report is set out below.
MMrr KKiimm MMaasssseeyy
B.Com, CA
CCoommppaannyy SSeeccrreettaarryy
Appointed 4 March 2021
CCoommmmiitttteeee mmeemmbbeerrsshhiipp
Mr Kim Massey was appointed as Company Secretary on 4 March 2021.
Mr Massey is a Chartered Accountant with significant experience in financial
management and corporate advisory services, particularly in the resources sector,
as a corporate advisor and company secretary for a number of ASX and AIM listed
companies.
At the date of this report, the Company had an Audit and Risk Management Committee, and a Remuneration, Nomination
and Diversity Committee. Mr Okeby is the chairman of both Committees. The directors acting on the Committee’s during
the year were:
DDiirreeccttoorr
M Okeby
M Ertzen
B De Araugo
DDiirreeccttoorrss’’ mmeeeettiinnggss
AAuuddiitt aanndd RRiisskk MMaannaaggeemmeenntt
CCoommmmiitttteeee
RReemmuunneerraattiioonn,, NNoommiinnaattiioonn aanndd
DDiivveerrssiittyy CCoommmmiitttteeee
✓
✓
✓
✓
✓
✓
The number of Board and Committee meetings held and attended by directors during the year were as follows:
DDiirreeccttoorr
BBooaarrdd
AAuuddiitt && RRiisskk mmaannaaggeemmeenntt
RReemmuunneerraattiioonn,, NNoommiinnaattiioonn
aanndd DDiivveerrssiittyy
NNoo.. hheelldd
NNoo.. aatttteennddeedd
NNoo.. hheelldd
NNoo.. aatttteennddeedd
NNoo.. hheelldd
NNoo.. aatttteennddeedd
M Clark
M Okeby
M Ertzen
B De Araugo
10
10
10
10
10
10
10
10
-
5
5
5
-
5
5
5
-
4
4
4
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10
-
4
4
4
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPrriinncciippaall AAccttiivviittiieess
The principal activities of Capricorn during the financial year were:
-
-
exploration, evaluation, development and production from the Karlawinda Gold Project (“KGP”); and
exploration and evaluation of the Mt Gibson Gold Project “(MGGP”).
SSttrraatteeggyy//OObbjjeeccttiivveess
The Group’s strategy is to be a profitable mid-tier gold company that delivers superior returns to shareholders over the
long term.
The focus of the Company during the year was the commissioning, optimisation and operation of the KGP following the
first gold pour on 30 June 2021. In addition, the Company actively pursued its strategy of growing in to a multi mine gold
company with the acquisition of the MGGP in July 2021. The Company’s objectives are to:
• Continue to optimise operations at KGP by mining and processing ore safely and responsibly:
• Organically increase the Reserves and Resources of the Company through systematic exploration activity across the
KGP tenement package;
• Advance the development of the MGGP with the estimation of an updated Mineral Resource Estimate and Ore
Reserve Estimate in the first half of FY23;
• Continue the technical, environmental and other studies required to underpin a Reserve estimate and feasibility study
and ultimately the development of the project in due course; and
• Actively pursue inorganic growth opportunities.
OOppeerraattiinngg aanndd FFiinnaanncciiaall RReevviieeww
OOvveerrvviieeww
Capricorn Metals Ltd is an Australian based gold producer and exploration company with two distinct project areas
located in Western Australia.
The KGP is located 65 kilometres south-east of Newman in the Pilbara region of Western Australia. The KGP commenced
operations in June 2021 after completion of project development on time and on budget.
The Company completed commissioning and optimisation of the project within the first full quarter of operations with
steady state production achieved by the end of September 2021. The project produced 118,432 ounces of gold in the
first financial year of operations which was at the top end of the 2022 financial year guidance of 110,000 – 120,000
ounces.
KGP is expected to produce 115,000 – 125,000 ounces of gold at all-in-sustaining-costs of $1,160 - $1,260 per ounce in
FY2023, with growth capital of $10 - $14 million.
In July 2021 the Company acquired the MGGP. The project is located in the Mid-West region of Western Australia, 280
kilometres north-east of Perth. Capricorn has estimated a JORC compliant resource of 2.1 million ounces of gold and is
progressing work with a view to developing the project.
At an acquisition cost of less than $20 per resource ounce the project represents a deep value proposition for the
Company and provides the potential for Capricorn to grow into a multi mine gold company.
Since acquisition, the Company has undertaken an extensive resource definition and extension drilling programme with
the aim of estimating an updated Mineral Resource Estimate (“MRE”) and maiden Ore Reserve Estimate (“ORE”) in the
2023 financial year. Technical work and studies were also commenced during the year for reserve estimation, feasibility
studies, permitting applications and ultimately project development decisions.
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11
CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
FFiinnaanncciiaall RReevviieeww
Key financial data
Financial results
Sales revenue
Cost of sales (excluding D&A) 1
Other income
Corporate, admin and other costs
EBITDA 1
Depreciation & amortisation (D&A)
Finance income/(expenses)
Profit/(loss) before tax
Income tax expense
Reported profit/(loss) after tax
2022
$‘000
287,043
(118,975)
229
(14,363)
153,934
(31,665)
(11,363)
111100,,990066
(21,423)
89,483
2021
$‘000
110
-
110
(7,556)
(7,336)
(215)
2,786
((44,,776655))
-
((44,,776655))
Change
$’000
Change
%
286,933
(118,975)
119
(6,807)
161,270
(31,450)
(14,149)
115,671
(21,423)
94,248
260,848
N/A
108
90
22,,119988
14,627
508
2,428
N/A
1,978
1 EBITDA is an adjusted measure of earnings before interest (finance income/(expenses)), taxes, depreciation and amortisation. Cost
of sales (excluding D&A) and EBITDA are non-IFRS financial information and are not subject to audit. These measures are included
to assist investors to better understand the performance of the business.
Capricorn achieved a net profit after tax of $89.5 million in FY22 up from a net loss position of $4.8 million in FY21 as a
result of the commencement of operations at the KGP. The Group recorded an EBITDA of $153.9 million and an EBITDA
margin for the year of 54%. A reconciliation between the statutory profit after tax and the Group’s EBITDA is tabled above.
Gold revenue for the financial year was $286.9 million from the sale of 116,122 ounces of gold at an average realised
price of $2,471 per ounce. During the year Capricorn delivered 35,053 ounces of gold into forward contracts at an average
delivery price of $2,247 per ounce and sold 81,069 ounces of gold at spot prices averaging $2,568 per ounce. As at 30
June 2022, Capricorn’s forward gold hedging programme totalled 164,947 ounces of flat forward contracts at an average
delivery price of $2,248 per ounce and 7,140 ounces of rolling spot deferred contracts at an average delivery price of
$2,681 per ounce. In addition, the Company has a 16,700 ounce gold call option with a strike price of $2,250 per ounce
maturing on 30 June 2025.
Cost of sales for the year was $149.5 million. All-in-sustaining-costs (“AISC”) of $1,112 per ounce were reported for the
first 9 months of steady state production.
Statutory operating cash flow for the year was $134.7 million underpinning a $55.6 million increase (to $65.9 million) in
cash and bullion for the year. Key cash flow movements for the year included:
•
•
•
•
•
Net cash inflow from operations (excluding interest paid) of $141.0 million
Payments for the completion of construction of the KGP of $26.5 million
$26.7 million on the acquisition of the MGGP
$18.4 million on exploration activities at KGP and MGGP
$25.0 million repayment of debt to Macquarie Bank Ltd
The Company had outstanding debt at the end of the financial year of $65 million after repaying $25 million during the
year. Shortly after the end of the financial year the Company repaid a further $15 million of its project loan facility, taking
cumulative repayments to $40 million since September 2021 and reducing the principal outstanding to $50 million. In
July 2022, Macquarie Bank agreed to convert the $50 million outstanding debt to a general-purpose corporate loan facility
with a single bullet repayment in June 2025.
During the year the Company added 1.5 million tonnes of ore to its inventory balance. Ore stocks at 30 June 2022 were
2.1 million tonnes valued at a cost of $36.7 million carried forward as an inventory asset on the Company’s Balance Sheet.
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPrroojjeecctt RReevviieeww
KKaarrllaawwiinnddaa GGoolldd PPrroojjeecctt
Operating results for the first 12 months of operations to 30 June 2022 were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost 1
Cash cost inc. royalties 1
All-in-sustaining-cost 1
UUnniitt
BCM (‘000)
BCM (‘000)
w:o
Tonnes (‘000)
Tonnes (‘000)
g/t
%
Ounces
A$/oz
A$/oz
A$/oz
3300 JJuunnee 22002222
2,790
8,954
3.21
5,940
4,450
0.89
94
118,432
$952
$1,073
$1,112
1
Costs are reported for the period from when operations were at steady state production which was 30 September
2021.
KGP produced 118,432 ounces from its first year of operation achieving the upper end of the annual production guidance
range of 110,000 – 120,000 ounces. All-in-sustaining-costs (“AISC”) for the nine months since the announcement of steady
state production was achieved was $1,112 per ounce which was at the lower end of the AISC guidance range for the year
of $1,100 - $1,200 per ounce.
A total of 8.9 million BCM of material was mined from the Bibra open pit during the year at a strip ratio of 3.21. Mining
focussed on delivering ore to the ROM from Stage 1 and 2 of the open pit and mining waste to open ore zones in stage 3
and 4 of the open pit.
The processing plant performed well during the year with steady state production achieved in the September 2021
quarter, three months after commissioning commenced. Mill feed during the year was primarily a combination of laterite
and oxide ore with a small proportion of transitional ore being fed towards the end of the year.
Capricorn expects to continue its strong operational performance in FY2023 with gold production guidance of 115,000 –
125,000 ounces at an AISC range of $1,160 - $1,260 per ounce.
MMtt GGiibbssoonn GGoolldd PPrroojjeecctt
In July 2021 Capricorn announced the acquisition of the MGGP located approximately 280 kilometres northeast of Perth
in the Mid-West region of WA. The Company has estimated a JORC 2012 compliant Inferred MRE of 79Mt @ 0.8g/t Au
for 2,083,000 ounces of gold at MGGP.
The Company acquired the project for total consideration of $39.6 million comprising $25.6 million cash payment and $14
million paid by the issue of 7.65 million fully paid ordinary shares in Capricorn. In addition, the Company granted a 1.0%
net smelter royalty on all minerals produced from the project including gold production in excess of 90,000 ounces.
In December 2021 all key mining tenure was granted over the project area allowing Capricorn to expedite work to grow
the gold resource and advance the project towards a maiden reserve estimate and feasibility study.
In January 2022 an extensive infill and extensional RC drilling programme commenced at MGGP to form the basis of an
updated MRE and maiden ORE (refer to exploration section below for more details). In conjunction with the
commencement of drilling, technical work and studies across numerous disciplines commenced at MGGP as required for
reserve estimation, feasibility studies, permitting applications and ultimately project development. In June 2022
Capricorn’s application for a mining lease was granted for an original term of 21 years. The granted mining lease covers
all of the areas required to develop the mining project.
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
EExxpplloorraattiioonn
KKaarrllaawwiinnddaa GGoolldd PPrroojjeecctt
Capricorn wholly owns a 2,052 square kilometre tenement package at KGP which includes the greenstone belt hosting
the Bibra gold deposit and other significant greenstone areas.
The Pilbara region of Western Australia has not had a significant historical exploration focus on gold and as a result very
little modern and meaningful gold exploration has been completed outside of the immediate Bibra deposit, the focus of
current mining operations.
During the year a total of 773 holes for 58,513 metres were drilled across the KGP tenement package.
Drilling during the year focussed on extending and infilling the MRE at KGP with a 30,000 metre RC drilling programme
commencing in March 2022. A total of 18,308 metres (85 holes) were completed by the end of the year covering 1.8
kilometres of strike from the Bibra Open Pit to the Southern Corridor and Tramore areas to the south. The programme
tested for extensions of gold mineralisation below the current open pit resource shell and increased the drill density of
the Southern Corridor and Tramore prospects whilst also testing for the occurrence of stacked lodes below the areas of
shallow drilling in the deposit. The programme was completed in August 2022 with results expected to underpin the
annual update of the MRE and ORE in October 2022.
Multiple near mine exploration projects were advanced during the year focussing on areas situated proximal to either the
Nanjilgardy Fault or the Sylvania Inlier and Pilbara Craton margin (refer Figure above). Encouraging results were received
from first pass drilling across the Muirfield, Carnoustie and Mundiwindi deposits during the year. Follow up regional and
near mine drilling programmes will continue in FY2023.
In June 2022 Capricorn acquired the Mumbakine Well Project. Capricorn paid Gascoyne Resources Ltd $1.25 million in
Capricorn shares and granted a 0.5% net smelter royalty on all gold produced from the project as well as contingent
deferred payments of $3.5 million (refer ASX Announcement 30 May 2022). The Mumbakine Well Project is located
contiguous to the KGP and only 10 kilometers from the KGP processing plant. The project is highly prospective and
provides an outstanding opportunity to add satellite resources and ultimately mill feed to the KGP. First pass drilling is
planned in FY2023.
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
MMtt GGiibbssoonn GGoolldd PPrroojjeecctt
In January 2022 two RC rigs commenced drilling a planned 81,000 metre drill programme across the 8 kilometres of strike
of current resources at the Company’s 100% owned MGGP.
The objectives of this programme included infill drilling of the resource to broadly bring the drill density to 25 x 25 metres,
testing gaps between the resource pit optimisation shells along the 8 kilometres of strike and testing for extensions of
gold mineralisation below the current resource shells.
By the end of the year a total of 80,124 metres of drilling was completed. Following a review of the very encouraging
results, Capricorn has extended the programme to 105,000 metres to continue testing strong extensional areas.
The assays received from drilling to date continue to line up with the historic data both spatially and for grade tenor,
providing validation of the historic +660,000 metre drill database acquired with the project in July 2021. The expectation
is that a significant proportion of the Inferred resource will be converted to Indicated category.
Current and previously reported drilling at the depth extremities of the resource optimisation shells (where historic drill
density is broader spaced) and below them has returned results consistent with Capricorn’s geological interpretations of
mineralisation location, widths and grade tenor. Drilling across the project to date indicates that mineralisation remains
open down dip and along strike to the north and south with multiple stacked lodes intersected.
Results of this extended programme will underpin an updated MRE targeted for completion in September 2022 and a
maiden ORE targeted for completion in October 2022.
MMaatteerriiaall bbuussiinneessss rriisskkss
The material business risks of the Company include:
• COVID-19: Capricorn continues to actively respond to the ongoing COVID-19 virus currently impacting people and
businesses globally. The health and safety of people working at Capricorn, their families and our communities remains
paramount during this time. Capricorn continues to operate under protocols developed internally and as prescribed
by State and Federal health authorities to minimise risks to our people and communities and ensure we continue to
safely operate during this challenging period. During the year a contact tracing system was implemented at the KGP
allowing for faster and more accurate assessment of close contacts to any positive cases on site. This system remains
in use at the date of this report. The KGP is located in Western Australia which has enabled the Company to have a
dynamic, rapid, and consistent approach to the management of the COVID-19 virus.
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
• Gold price and foreign exchange currency: The Company is exposed to fluctuations in the Australian dollar gold price
which can impact on revenue streams from operations. To mitigate downside in the gold price, the Board has
implemented a hedging program to assist in offsetting variations in the Australian dollar gold price.
• Reserves and Resources: The Mineral Resource Estimates and Ore Reserve Estimates for the Company’s assets are
estimates only and no assurance can be given that they will be realised. The estimates are determined in accordance
with JORC and compiled or reviewed by a qualified competent person.
• Government regulation: The Company’s mining, processing, development and exploration activities are subject to
various laws and statutory regulations governing prospecting, development, production, taxes, royalty payments,
labour standards and occupational health, mine safety, toxic substances, land use, water use, communications, land
claims of local people and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position and
results of operations. Any such amendments to current laws, regulations and permits governing operations and
activities of mining and exploration, or more stringent implementation thereof, could have a material adverse impact
on the Company.
• Operating risk: The Company’s gold mining operations are subject to operating risks that could result in decreased
production, increased costs & reduced revenues. To manage this risk the Company seeks to attract and retain high
calibre employees and implement suitable systems and processes to ensure production targets are achieved.
• Exploration and development risk: An ability to sustain or increase the current level of production in the longer term
is in part dependent on the success of the group’s exploration activities and development projects, and the expansion
of existing mining operations. The exploration for, and development of, mineral deposits involves significant risks that
even a combination of careful evaluation, experience and knowledge may not eliminate. While the discovery of an
ore body may result in substantial rewards, few properties that are explored subsequently have economic deposits
of gold identified, and even fewer are ultimately developed into producing mines. Major expenses may be required
to locate and establish mineral reserves, to establish rights to mine the ground, to receive all necessary operating
permits, to develop metallurgical processes and to construct mining and processing facilities at a particular site.
• Climate Change: Capricorn acknowledges that climate change effects have the potential to impact our business. The
highest priority climate related risks include reduced water availability, extreme weather events, changes to legislation
and regulation, reputational risk, and technological and market changes. The group is committed to understanding
and proactively managing the impact of climate related risks to our business. This includes integrating climate related
risks, as well as energy considerations, into our strategic planning and decision making.
• Environmental: The Company has environmental liabilities associated with its tenements which arise as a consequence
of mining operations,
including waste management, tailings management, chemical management, water
management and energy efficiency. The Company monitors its ongoing environmental obligations and risks, and
implements rehabilitation and corrective actions as appropriate, through compliance with its environmental
management system.
• People risks: The Company seeks to ensure that it provides a safe workplace to minimise risk of harm to its employees
and contractors. It achieves this through an appropriate safety culture, safety systems, training and emergency
preparedness.
SSiiggnniiffiiccaanntt cchhaannggeess iinn ssttaattee ooff aaffffaaiirrss
Other than as set out below and elsewhere in the report, there were no significant changes in the state of affairs.
DDiivviiddeennddss ppaaiidd oorr rreeccoommmmeennddeedd
No dividends were paid or recommended to be paid during the financial year (2021: Nil).
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
SSuubbsseeqquueenntt eevveennttss
There were no material events arising subsequent to 30 June 2022, to the date of this report which may significantly
affect the operations of the Group, the results of those operations and the state of affairs of the Group in the future,
other than:
LLooaann rreeffiinnaanncciinngg && rroolllliinngg ooff ggoolldd ccoonnttrraaccttss
In July 2022 the Company arranged with Macquarie Bank to convert the project loan facility to a general-purpose
corporate loan facility with a single bullet repayment in June 2025. Capricorn can elect to repay (part or full) the loan at
any time without penalty. In addition, 30,000 ounces of gold contracts with an average delivery price of $2,247/oz have
been rolled from Jul 22 – Dec 22 to Dec 25 – Jun 26 to align with the maturity date of the new corporate facility.
SShhaarree iissssuuee
On 19 September 2022 the Company announced the issue of 2,000,000 shares as a result of performance rights being
exercised by the Chief Executive Officer Mr Massey and the Chief Operating Officer Mr Thomas, in equal proportions, in
accordance with their employment contracts.
LLiikkeellyy ddeevveellooppmmeennttss
There are no likely developments of which the Directors are aware which could be expected to significantly affect the
results of the Group’s operations in subsequent financial years not otherwise disclosed in the Principal Activities and
Operating and Financial Review or the Subsequent events sections of the Directors’ Report.
EEnnvviirroonnmmeennttaall iissssuueess
Mining and exploration operations in Australia are subject to environmental regulation under the laws of the
Commonwealth and the State of Western Australia. The Group holds various environmental licences issued under these
laws, to regulate its mining and exploration activities. The Group’s current activities generally involve disturbance
associated with mining activities and exploration drilling programmes in Australia.
All environmental performance obligations are monitored by the Board of Directors and subjected from time to time to
Government agency audits and site inspections. There have been no material breaches of the Group’s licenses and all
mining and exploration activities have been undertaken in compliance with the relevant environmental regulations.
DDiirreeccttoorrss’’ iinntteerreessttss
As at the date of this report, the interests of the Directors in shares and options of the Company are set out in the table
below:
DDiirreeccttoorr
M Clark
M Okeby
M Ertzen
B De Araugo
SShhaarree ooppttiioonnss
UUnniissssuueedd sshhaarreess
NNuummbbeerr ooff
sshhaarreess
22,052,000
6,615,385
3,611,539
74,550
NNuummbbeerr ooff
uunnqquuootteedd rriigghhttss
240,000
-
-
-
At the date of this report, the Company had no unissued shares under listed and unlisted options.
SShhaarreess iissssuueedd oonn eexxeerrcciissee ooff ooppttiioonnss
During the year 10,000,000 ordinary shares were issued by the Company as a result of the exercise of 10,000,000 options
at a weighted average exercise price of $0.60 per share.
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CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPeerrffoorrmmaannccee rriigghhttss
UUnniissssuueedd sshhaarreess
At the date of this report, the Company had the following unissued shares under unvested performance rights.
VVeessttiinngg ddaattee
1 February 2023
30 September 2022
30 September 2023
18 January 2023
18 January 2024
29 March 2023
29 March 2024
4 October 2022
4 October 2023
10 December 2022
10 December 2023
10 December 2024
30 June 2023
30 June 2024
NNuummbbeerr oouuttssttaannddiinngg
975,000
112,500
112,500
100,000
100,000
100,000
100,000
120,000
120,000
83,000
599,000
639,000
139,909
139,909
Performance rights holders do not have any right, by virtue of the performance rights to participate in any share issue of
the Company or any related body corporate.
Details of performance rights granted to directors and other key management personnel during the year are set out in
the remuneration report.
IInnddeemmnniiffiiccaattiioonn aanndd iinnssuurraannccee ooff ddiirreeccttoorrss aanndd ooffffiicceerrss
The Company has established an insurance policy insuring Directors and officers of the Company against any liability
arising from a claim brought by a third party against the Company or its Directors and officers, and against liabilities for
costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their
capacity as a Director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the
Company.
In accordance with a confidentiality clause under the insurance policy, the amount of the premium paid to insurers will
not be disclosed. This is permitted under s300(9) of the Corporation Act 2001.
No indemnity has been obtained for the auditor of the Group.
AAuuddiittoorr iinnddeeppeennddeennccee aanndd nnoonn--aauuddiitt sseerrvviicceess
No fees were paid or payable to KPMG Australia for non-audit services during the year ended 30 June 2022 (2021: Nil).
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 for the
year ended 30 June 2022 is attached to the Directors’ Report.
PPrroocceeeeddiinnggss oonn bbeehhaallff ooff tthhee CCoommppaannyy
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings.
RRoouunnddiinngg ooffff
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Director’s Reports) Instrument 2016/191
and in accordance with that Instrument, amounts in the consolidated financial statements and Director’s report have
been rounded off to the nearest thousand dollars, unless otherwise stated.
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CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd))
This remuneration report for the year ended 30 June 2022 outlines the remuneration arrangements of the Company and
the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This
information has been audited as required by section 308(3C) of the Act.
The report details the nature and amount of remuneration for each Key Management Personnel (“KMP”) of Capricorn
Metals Ltd who are defined as those persons having authority and responsibility for planning, directing and controlling
the major activities of the Company and Group, directly or indirectly, including any Director (whether executive or
otherwise) of the parent company.
For the purpose of this report, the term “executive” includes the Executive Chairman, senior executives and company
secretaries of the Parent and the Group.
RReemmuunneerraattiioonn pprriinncciipplleess
The Remuneration, Nomination and Diversity Committee (“RNDC”) was appointed in June 2021 following the rapid
growth of the Group. The RNDC is responsible for formulating the Group’s remuneration policy, setting each Director’s
remuneration and reviewing the Executive Chairman’s remuneration recommendations for KMPs to ensure compliance
with the remuneration Policy and consistency across the Group. Recommendations of the RNDC are put to the Board for
approval.
In determining KMP remuneration the Board aims to ensure remuneration levels are set that attract, retain and
incentivise executives and directors that are appropriately qualified and of a high calibre. Executives are rewarded with a
level and mix of remuneration appropriate to their position, responsibilities and performance in a way that aligns with
the Group’s business strategy. For the 2022 financial year the Company has implemented an Executive Remuneration
Incentive Plan for Executives which sets out the performance hurdles for both Short Term Incentives (“STI”) and Long
Term Incentives (“LTI”).
The objectives and principles of the Company’s remuneration policy include:
•
•
•
•
To align the objectives of the KMP’s with the Company’s strategic and business objectives and the creation of
shareholder value;
To provide competitive and reasonable remuneration to attract and retain high calibre talent;
To provide remuneration that is transparent, easily understood and acceptable to shareholders; and
To provide remuneration that is structured to have a suitable mix of fixed remuneration and at-risk performance
based elements using appropriate STI and LTI components.
Executive remuneration levels are reviewed annually by the RNDC to ensure alignment to the market and the Company’s
objectives.
The Company’s remuneration policy provides for a combination of fixed and variable pay with the following components:
•
•
Fixed remuneration in the form of base salary, superannuation and benefits; and
Variable remuneration in the form of STI’s and LTI’s.
The table below provides a summary of the structure of executive remuneration:
Fixed
Remuneration
- Base salary
- Superannuation
- Other benefits
Variable
Remuneration
- STI (cash bonuses)
- LTI (performance rights)
The relative proportion of target FY22 total remuneration packages split between the fixed and variable remuneration
for the executives is shown below:
(cid:3)(cid:3)(cid:3)
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CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
33%
MARK CLARK
48%
30%
PAUL THOMAS
50%
19%
20%
26%
21%
KIM MASSEY
53%
(cid:3)
(cid:3)
(cid:3)
Fixed remuneration
Short tern incentives
Long term incentives
(cid:3)
(cid:3)
EElleemmeennttss ooff RReemmuunneerraattiioonn
FFiixxeedd rreemmuunneerraattiioonn
Fixed remuneration consists of base remuneration (including fringe benefits tax charges related to employee benefits),
as well as employer contributions to superannuation funds and salary sacrifice superannuation contributions.
Remuneration levels are reviewed annually by the RNDC through a process that considers market conditions, individual
performance and the overall performance of the Group. Industry remuneration surveys and data are utilised to assist in
this process as well as benchmarking against ASX listed companies within the gold mining sector.
During the year, the RNDC recommended to the Board that executive fixed remuneration be increased to reflect the
transformation of the Company to gold producer. From 1 October 2021 executive annual base salaries were:
• Mark Clark
•
•
Paul Thomas
Kim Massey
SShhoorrtt tteerrmm iinncceennttiivveess
$650,000
$600,000
$500,000
Under the STI plan, all executives have the opportunity to earn an annual incentive which is delivered in cash if certain
financial and non-financial key performance indicators (“KPI’s”) are met. The STI recognises and rewards annual
performance and links the achievement of key short term Company targets with the remuneration received by those
executives charged with meeting those targets. STI awards are capped at 100% of the target opportunity which in FY22
was 40% of the fixed remuneration of the executive.
Each year the RNDC set KPI targets for executives. For FY22 the KPI’s included:
•
•
•
•
operating targets including gold production and AISC measured against budgets;
safety, environmental and heritage targets measured against internal objectives;
additions to Company ore reserves net of mining depletion; and
company performance measured as Total Shareholder Returns (“TSR”) versus a comparator peer group of
companies.
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CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
A summary of the KPI targets set for FY22 and their respective weightings and achievements are as follows:
KKeeyy PPeerrffoorrmmaannccee
IInnddiiccaattoorr
Production
Costs
Safety, environment &
heritage
WWeeiigghhttiinngg MMeeaassuurree
25%
25%
10%
Gold production in line or greater than budget
AISC in line or less than budget
Safety, environment and heritage internal targets
Reserve growth
15%
Addition to the Company’s reserve base net of
depletion through mining
%% ooff KKPPII
aacchhiieevveedd
60%
60%
0%
AAwwaarrdd
15%
15%
0%
0%
0%
Company performance 25%
TSR performance against comparator group
100%
Total
100%
25%
55%
In assessing the achievement of the KPI’s the Committee made the following assessments:
Production – annual gold production of 118,432 ounces was in line with FY22 budgeted production and the base reward
of 15% was awarded;
Costs – AISC’s of $1,112 per ounce for the 9 months of production since steady state operations were achieved was in line
with FY22 budgeted AISC’s and the base reward of 15% was awarded;
Safety, environment & heritage – Reflecting the Company’s commitment to high standards of safety, environmental
performance and heritage obligations, awards were only given if stretch targets were attained. Accordingly, although the
Company achieved satisfactory performance for the year, the Committee decided not to allocate an award for this KPI;
Reserve growth – At the time of this report, the Company had not completed its annual Reserve and Resource update
which is expected to be completed in October 2022. Accordingly, the Committee decided not to allocate an award for this
KPI;
Company performance – The Company achieved a total shareholder return of 63% for the 12 months to 30 June 2022
which was at the upper end of the comparator group. Accordingly, the stretch target was achieved and a 25% weighting
was awarded for this KPI.
Based on the above assessment, 55% of the target opportunity of 40% of fixed remuneration was achieved with the
following STI payments made to executives for FY22:
EExxeeccuuttiivvee
Mark Clark
Paul Thomas
Kim Massey
LLoonngg tteerrmm iinncceennttiivveess
MMaaxxiimmuumm SSTTII ooppppoorrttuunniittyy
%% KKPPII aacchhiieevveedd
SSTTII aawwaarrddeedd
SSTTII aawwaarrddeedd
40% of TFR
40% of TFR
40% of TFR
55%
55%
55%
22% of TFR
22% of TFR
22% of TFR
$143,000
$132,000
$110,000
The Board has established the Employee Incentive Plan (“Incentive Plan”) as a means for motivating senior employees to
pursue the long-term growth and success of the Group. LTI’s are provided to executives under the Capricorn Performance
Rights Plan. Executives are eligible to receive performance rights (being entitlements to shares in Capricorn subject to
satisfaction of vesting conditions) as long-term incentives as determined by the Board in accordance with the terms and
conditions of the plan.
In the 2022 financial year, under the Performance Rights Plan, the number of rights granted to executives range from
50% to 60% of the executives fixed remuneration and is dependent on the individual’s skills, responsibilities and ability
to influence financial or other key objectives of the Company. The number of rights granted is calculated by dividing the
LTI remuneration dollar amount by the Capricorn share price on the date of the grant.
The performance rights issued in FY22 were subject to one performance hurdle being total shareholder return (“TSR”)
measured against a benchmark peer group.
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CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
The following companies have been identified by Capricorn to comprise the peer group:
Regis Resources Limited
Silver Lake Resources Ltd
Westgold Resources Limited
Calidus Resources Limited
Ora Banda Mining Ltd
Gold Road Resources Limited
PPeeeerr GGrroouupp
Dacian Gold Limited
St Barbara Limited
Pantoro Limited
Gascoyne Resources Ltd
De Grey Mining Limited
Bellevue Gold Limited
Red 5 Limited
Aurelia Metals Limited
Alkane Resources Limited
Ramelius Resources Limited
This provides a broad and representative comparative peer group for Australian investors. The peer group will be adjusted
if members are delisted (for reasons other than financial failure) or a company merges with or is acquired by another
company in the peer group - in which case the resulting company remains in the peer group and the acquired company
is removed. The Board has the discretion to adjust the peer group in other circumstances.
The proportion of executive rights that vest is dependent on how Capricorn’s TSR compares to the peer group as follows:
RReellaattiivvee TTSSRR ffoorr MMeeaassuurreemmeenntt PPeerriioodd
PPrrooppoorrttiioonn ooff PPeerrffoorrmmaannccee RRiigghhttss tthhaatt wwiillll vveesstt
Below the 50th percentile
At the 50th percentile
0%
50%
Between the 50th and 75th percentile
Pro-rata between 50% and 100%
At and above the 75th percentile
100%
The measurement period for:
•
•
50% of the performance rights is the 24-month period commencing on 1 July 2021 and ending on 30 June 2023
(Tranche 1); and
The other 50% of the performance rights is the 36-month period commencing on 1 July 2021 and ending on 30
June 2024 (Tranche 2).
The following executives were awarded LTI’s during the reporting period:
EExxeeccuuttiivvee
Paul Thomas
Kim Massey
MMaaxxiimmuumm LLTTII
OOppppoorrttuunniittyy
11..
SShhaarree pprriiccee aatt ggrraanntt ddaattee
NNuummbbeerr ooff ppeerrffoorrmmaannccee rriigghhttss
ggrraanntteedd dduurriinngg FFYY2222
60%
50%
2.18
2.18
22..
33..
165,138
114,680
In October 2021, the Remuneration, Nomination and Diversity Committee awarded the Company’s Executive Chairman
240,000 performance rights with similar performance hurdles however the measurement period was:
•
•
50% of the performance rights is the 12-month period commencing on 4 October 2021 and ending on 4 October
2022 (Tranche 1); and
The other 50% of the performance rights is the 24-month period commencing on 4 October 2021 and ending
on 4 October 2023 (Tranche 2).
The Committee awarded the performance rights with a reduced measurement period in recognition that Mr Clark had
not previously been awarded performance rights.
Shareholders approved the issue of performance rights to Mr Clark at the Company AGM in November 2021.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22
Page | 22
CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
Performance rights that were granted to KMPs as compensation during the current and previous years and which have
vested during or remain outstanding at the end of the year are provided as follows:
KKMMPP
IInncceennttiivveess
NNoo.. ooff
rriigghhttss
GGrraanntt ddaattee
FFVV aatt ggrraanntt
ddaattee
TTeesstt ddaattee
%% VVeesstteedd
dduurriinngg tthhee
yyeeaarr
%% ffoorrffeeiitteedd
dduurriinngg tthhee
yyeeaarr
M Clark
TSR
TSR
120,000
24/11/2021
$2.042
4/10/2022
120,000
24/11/2021
$2.042
4/10/2023
0%
0%
K Massey
2 yrs service
1,000,000
17/12/2019
$1.180
17/9/2021
100%
3 yrs service
1,000,000
17/12/2019
$1.180
17/9/2022
TSR
TSR
57,340
4/10/2021
$1.780
30/6/2023
57,340
4/10/2021
$1.872
30/6/2024
0%
0%
0%
P Thomas
2 yrs service
1,000,000
17/12/2019
$1.180
17/9/2021
100%
3 yrs service
1,000,000
17/12/2019
$1.180
17/9/2022
TSR
TSR
82,569
4/10/2021
$1.780
30/6/2023
82,569
4/10/2021
$1.872
30/6/2024
0%
0%
0%
44,,551199,,881188
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
The value of rights granted during the year is the fair value of the rights calculated at grant date. The total value of the
rights granted during the year is $1,017,468. This amount is allocated to remuneration over the vesting period (i.e. in
years 1 July 2019 to 30 June 2024).
The total performance rights expense recognised for KMP during the year is $1,736,338.
There were 2,000,000 performance rights with a grant date 17 December 2019 that vested and were exercised during
the year.
The remaining performance rights granted on 17 December 2019, have a three-year performance period which ends on
17 September 2022. For performance rights granted on 4 October 2021, 50% of the rights have a performance period of
two years which ends on 30 June 2023 and the remaining balance ends on 30 June 2024.
In relation to the performance rights issued on 24 November 2021 50% of the rights have a performance period of one
year which ends on 4 October 2022 and the remaining balance ends on 4 October 2023.
OOppttiioonnss
There were no options granted to KMP’s during the current year.
The table below outlines the movements in options during the year.
NNaammee
Grant date
Number held as at 1 July 2021
Fair value at grant date
Exercise price per option
Vesting date
Expiry date
Vested and exercisable
Exercised during the year
Number held as at 30 June 2022
MM CCllaarrkk
27 Aug 19
8,000,000
$1.225
$0.60
27 Aug 19
30 Aug 22
8,000,000
MM OOkkeebbyy
27 Aug 19
2,000,000
$1.225
$0.60
27 Aug 19
30 Aug 22
2,000,000
(8,000,000)
(2,000,000)
-
-
TToottaall
10,000,000
10,000,000
(10,000,000)
-
These options were fully expensed at the time of vesting in 2019.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 23
23
CAPRICORN METALS LTD - Annual Report
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II
CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd))
NNoonn--eexxeeccuuttiivvee ddiirreeccttoorrss
Total remuneration for all Non-Executive Directors, last voted upon by shareholders at the 2021 Annual General Meeting,
is not to exceed $600,000 per annum. Directors’ fees cover all main Board activities and committee memberships. The
base fee for a Non-Executive Director increased from $100,000 to $120,000 per annum excluding superannuation on 1
October 2021. An additional amount of $15,000 is also paid to the Chairman of each of the Remuneration and Audit
Committees. From time to time, Non-Executive Directors may provide additional services to the Company and in these
cases, they are paid fees in line with industry rates.
KKeeyy mmaannaaggeemmeenntt ppeerrssoonnnneell
The following table outlines the movements in KMP during the year ended 30 June 2022.
NNaammee
Mr Mark Okeby
Mr Myles Ertzen
PPoossiittiioonn
Non-Executive Director
Non-Executive Director
Mr Bernard De Araugo
Non-Executive Director
Mr Mark Clark
Mr Kim Massey
Mr Paul Thomas
Executive Director
Chief Executive Officer & Company Secretary
Chief Operating Officer
The following table outlines the termination provisions for each current KMP:
TTeerrmm aass KKMMPP
Full Year
Full Year
Full Year
Full Year
Full Year
Full Year
MMaarrkk CCllaarrkk, Executive Director
Notice Period by Capricorn:
- With or without reason
- Serious misconduct
Notice Period by Executive:
Fundamental change:
KKiimm MMaasssseeyy, Chief Executive Officer
Notice Period by Capricorn:
- With or without reason
- Serious misconduct
Notice Period by Executive:
Fundamental change:
PPaauull TThhoommaass, Chief Operating Officer
Notice Period by Capricorn:
- With or without reason:
- Serious misconduct:
Notice Period by Executive:
Fundamental change:
NNoottiiccee ppeerriioodd
PPaayymmeenntt iinn lliieeuu
ooff nnoottiiccee
EEnnttiittlleemmeenntt ttoo ooppttiioonnss
aanndd rriigghhttss oonn
tteerrmmiinnaattiioonn
2 months
Up to 2 months
Nil
Nil
2 months
Up to 2 months
n/a
n/a
6 months
Up to 6 months
Nil
3 months
1 month
Nil
3 months
12 months
6 months
Up to 6 months
Nil
3 months
1 month
Nil
3 months
12 months
(1)
As above
n/a
(1)
As above
n/a
(1)
As above
n/a
(1) Due to resignation or termination for cause, any unvested rights and options will automatically lapse on the date of the cessation of
employment. For those performance rights or options that have vested, they lapse one (1) month after cessation of employment. These terms
can be extended at the Board’s discretion.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 25
25
CAPRICORN METALS LTD - Annual Report
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CAPRICORN METALS LTD - Annual Report
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27
CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
MMoovveemmeennttss iinn sshhaarree hhoollddiinnggss
The movement during the reporting period in the number of ordinary shares in the Company held, directly, indirectly or
beneficially, by KMP, including their related parties, is as follows:
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorrss
M Okeby
M Ertzen
B De Araugo
EExxeeccuuttiivvee DDiirreeccttoorrss
M Clark
OOtthheerr EExxeeccuuttiivveess
K Massey
P Thomas
HHeelldd aass aatt
11 JJuullyy 22002211
IIssssuueedd oonn eexxeerrcciissee
ooff ooppttiioonnss//rriigghhttss
NNeett cchhaannggee
ootthheerr*
HHeelldd aass aatt
3300 JJuunnee 22002222
4,615,385
3,611,539
45,550
2,000,000
-
-
-
-
29,000
6,615,385
3,611,539
74,550
14,052,000
8,000,000
-
22,052,000
2,153,847
4,300,000
1,000,000
1,000,000
2288,,777788,,332211
1122,,000000,,000000
(1,000,000)
(1,900,000)
((22,,887711,,000000))
2,153,847
3,400,000
3377,,990077,,332211
*
Unless stated otherwise, “Net change other” relates to on market purchases and sales of shares.
RReellaatteedd PPaarrttyy TTrraannssaaccttiioonnss wwiitthh KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
LLooaannss ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell aanndd tthheeiirr rreellaatteedd ppaarrttiieess
There were no loans made to any Director, KMP and/or their related parties during the current or prior years.
OOtthheerr ttrraannssaaccttiioonnss wwiitthh KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
No Director has entered into contracts with the Group since the end of the previous financial year and there were no
material contracts involving Directors’ interests existing at year end. Transactions between related parties are on usual
commercial terms and on conditions no more favourable than those available to other parties unless otherwise stated.
Other than the ordinary accrual of personnel expenses at balance date and transactions disclosed above, there are no
other amounts receivable from and payable to KMP and their related parties.
CCoommppaannyy PPeerrffoorrmmaannccee
The following table shows the gross revenue, profits, dividends and share price at the end of financial year for the past
five financial years ending 30 June:
Revenue
Net profit/(loss) after tax
Share price at year-end
Dividends paid
Total assets
Net assets
22001188
$$’’000000
242
(3,118)
0.066
-
37,388
35,984
22001199
$$’’000000
207
(23,817)
0.089
-
26,284
23,817
RReessttaatteedd
22002200
$$’’000000
122
(17,947)
1.795(1)
-
22002211
$$’’000000
110
(4,765)
1.900
-
124,486
95,508
299,595
130,460
22002222
$$’’000000
287,043
89,483
3.130
-
448,512
247,535
(1) A share consolidation of one for every five shares was approved by shareholders in November 2019.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
28
Page | 28
CAPRICORN METALS LTD - Annual Report
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
The Board does not consider earnings during the current and previous four financial years when determining, and in
relation to, the nature and amount of remuneration of KMP.
-- EENNDD OOFF AAUUDDIITTEEDD RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT --
Signed in accordance with a resolution of the Board of Directors.
Mr Mark Clark
Executive Chairman
Perth, Western Australia
28 September 2022
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 29
29
CAPRICORN METALS LTD - Annual Report
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Capricorn Metals Ltd
I declare that, to the best of my knowledge and belief, in relation to the audit of Capricorn Metals Ltd
for the financial year ended 30 June 2022 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
R Gambitta
Partner
Perth
28 September 2022
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG
name and logo are trademarks used under license by the independent member firms of the KPMG global
organisation. Liability limited by a scheme approved under Professional Standards Legislation.
30
CAPRICORN METALS LTD - Annual Report
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff pprrooffiitt oorr lloossss aanndd ootthheerr ccoommpprreehheennssiivvee iinnccoommee
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
Revenue
Cost of goods sold
GGrroossss pprrooffiitt
Other income
Fair value gain/(loss) on financial assets
Personnel costs
Share-based payment expense
Depreciation
Amortisation
Administrative expense
Exploration and evaluation expenditure
Finance income/(expenses)
PPrrooffiitt//((lloossss)) bbeeffoorree iinnccoommee ttaaxx eexxppeennssee
Income tax expense
PPrrooffiitt//((lloossss)) aattttrriibbuuttaabbllee ttoo mmeemmbbeerrss ooff tthhee ppaarreenntt eennttiittyy
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee::
IItteemmss tthhaatt mmaayy bbee rree--ccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss::
Exchange differences on translation of foreign operations
OOtthheerr ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr,, nneett ooff ttaaxx
TToottaall ccoommpprreehheennssiivvee iinnccoommee//((lloossss)) ffoorr tthhee yyeeaarr aattttrriibbuuttaabbllee ttoo mmeemmbbeerrss ooff tthhee
ppaarreenntt eennttiittyy
NNoottee
2
3
2
9
3
29
3
3
3
5
22002222
$$’’000000
287,043
(149,480)
137,563
229
(340)
(7,217)
(4,893)
(225)
(935)
(1,680)
(233)
(11,363)
111100,,990066
(21,423)
8899,,448833
22002211
$$’’000000
110
-
110
110
420
(3,619)
(3,277)
(215)
-
(1,076)
(4)
2,786
((44,,776655))
-
((44,,776655))
(196)
((119966))
(149)
((114499))
8899,,228877
((44,,991144))
EEaarrnniinnggss ppeerr sshhaarree::
Basic profit/(loss) per share (cents per share)
Diluted profit/(loss) per share (cents per share)
4
4
24.27
23.91
(1.39)
(1.39)
The accompanying notes form part of these financial statements
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 31
31
CAPRICORN METALS LTD - Annual Report
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
CCuurrrreenntt aasssseettss
Cash and cash equivalents
Receivables
Other assets
Inventories
Financial assets
Assets classified as held for sale
TToottaall ccuurrrreenntt aasssseettss
NNoonn--ccuurrrreenntt aasssseettss
Inventories
Financial assets
Plant and equipment
Right of use assets
Deferred exploration and evaluation costs
Mine properties under development
Mine properties
TToottaall nnoonn--ccuurrrreenntt aasssseettss
TToottaall aasssseettss
CCuurrrreenntt lliiaabbiilliittiieess
Trade and other payables
Lease liabilities
Borrowings
Provisions
TToottaall ccuurrrreenntt lliiaabbiilliittiieess
NNoonn--ccuurrrreenntt lliiaabbiilliittiieess
Lease liabilities
Borrowings
Provisions
Financial liabilities
Deferred tax liabilities
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess
TToottaall lliiaabbiilliittiieess
NNeett aasssseettss
EEqquuiittyy
Issued capital
Reserves
Retained earnings
TToottaall eeqquuiittyy
NNoottee
6
7
8
9
10
8
9
11
12
13
14
15
17
18
19
20
18
19
20
21
22
23
24
25
22002222
$$’’000000
61,502
2,235
295
14,913
3,099
2,500
8844,,554444
29,883
3,067
159,121
47,972
77,297
22002211
$$’’000000
10,312
1,325
265
14,065
2,925
2,500
3311,,339922
-
4,516
1,075
51,591
2,698
-
208,323
46,628
336633,,996688
-
226688,,220033
444488,,551122
229999,,559955
27,407
7,613
38,386
1,087
7744,,449933
37,822
27,000
29,226
11,540
20,896
18,945
7,452
32,000
569
5588,,996666
43,603
38,000
21,483
7,083
--
112266,,448844
111100,,116699
220000,,997777
116699,,113355
224477,,553355
113300,,446600
203,524
6,101
37,910
224477,,553355
180,629
10,647
(60,816)
113300,,446600
The accompanying notes form part of these financial statements
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
32
Page | 32
CAPRICORN METALS LTD - Annual Report
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CAPRICORN METALS LTD - Annual Report
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ccaasshh fflloowwss
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
CCaasshh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
Receipts from gold sales
Payments to suppliers and employees
Payments for exploration expenditure
Interest received
Interest paid
Other income
NNeett ccaasshh ffrroomm//((uusseedd iinn)) ooppeerraattiinngg aaccttiivviittiieess
6
CCaasshh fflloowwss ffrroomm iinnvveessttiinngg aaccttiivviittiieess
Payments for property, plant and equipment
Payments for investments
Payments for capitalised exploration expenditure
Payments for mine properties under development
Payment for acquisition of assets
Proceeds on disposal of property, plant and equipment
NNeett ccaasshh uusseedd iinn iinnvveessttiinngg aaccttiivviittiieess
CCaasshh fflloowwss ffrroomm ffiinnaanncciinngg aaccttiivviittiieess
Proceeds from the issue of shares
Proceeds from exercise of share options
Transaction costs from issue of shares
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
NNeett ccaasshh fflloowwss ffrroomm//((uusseedd iinn)) ffiinnaanncciinngg aaccttiivviittiieess
NNeett iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh hheelldd
Cash and cash equivalent at the beginning of the year
Effect of exchange rates on cash holdings in foreign currencies
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt tthhee eenndd ooff tthhee yyeeaarr
6
6
NNoottee
22002222
$$’’000000
22002211
$$’’000000
286,948
(146,390)
-
28
(5,966)
37
113344,,665577
(5,777)
-
(18,437)
(26,548)
(26,744)
187
-
(18,294)
(4)
177
(994)
218
((1188,,889977))
(385)
(1,200)
(2,750)
(117,118)
--
--
((7777,,331199))
((112211,,445533))
-
6,000
(42)
20,000
(25,000)
(7,424)
((66,,446666))
36,836
(1,243)
70,000
-
(626)
110044,,996677
5511,,119900
((3355,,338833))
10,312
-
6611,,550022
45,695
-
1100,,331122
The accompanying notes form part of these financial statements
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
34
Page | 34
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
BBaassiiss ooff pprreeppaarraattiioonn
PPeerrffoorrmmaannccee ffoorr tthhee yyeeaarr
1.
2.
3.
4.
5.
6.
Segment information
Revenue & other income
Expenses
Earnings per share
Income tax
Cash and cash equivalents
AAsssseettss
Receivables
Inventories
Financial assets
Assets held for sale
Plant and equipment
Right of use assets
Deferred exploration and evaluation costs
7.
8.
9.
10.
11.
12.
13.
14. Mine properties under development
15. Mine properties
16.
Impairment of non-financial assets
LLiiaabbiilliittiieess
17.
18.
19.
20.
21.
22.
Trade and other payables
Lease liabilities
Borrowings
Provisions
Financial liabilities
Deferred tax liabilities
EEqquuiittyy
23.
24.
25.
RRiisskk
26.
27.
Issued capital
Reserves
Retained earnings
Financial risk management
Capital management
OOtthheerr DDiisscclloossuurreess
28. Mt Gibson Gold Project Acquisition
29.
30.
31.
32.
33.
34.
35.
36.
Share-based payments
Related parties
Parent entity disclosures
Commitments
Contingencies
Auditors’ remuneration
Subsequent events
New accounting standards and interpretations issued but not yet effective
PPaaggee
36
37
38
39
41
42
43
43
44
44
46
47
48
48
49
50
50
51
51
52
53
54
55
57
58
58
58
61
62
62
66
67
67
67
67
68
68
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 35
35
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
BBAASSIISS OOFF PPRREEPPAARRAATTIIOONN
Capricorn Metals Ltd is a for profit company limited by shares, incorporated and domiciled in Australia, whose shares are
publicly traded on the Australian Securities Exchange.
The Company’s registered office and principal place of business is:
Level 1, 28 Ord Street
WEST PERTH WA 6005
The nature of the operations and principal activities of the Company and its subsidiaries are described in the Directors
Report.
The consolidated financial statements were authorised for issue by the Board of Directors on 28 September 2022.
The consolidated financial statements are general purpose financial statements which:
• have been prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting
Standards Board (”AASB”) and the Corporations Act 2001. The consolidated financial statements comply with
International Financial Reporting Standards adopted by the International Standards Board;
• have been prepared on a historical cost basis except for assets and liabilities and share based payments which are
required to be measured at fair value;
• are presented in Australian dollars with all values rounded to the nearest thousand ($’000) unless otherwise stated in
accordance with ASIC Instrument 2016/191;
• adopts all new, revised and amended Accounting Standards and Interpretations issued by the AASB that are
mandatory for the current reporting period (See details below); and
• presents reclassified comparative information where required for consistency with the current year’s presentation.
PPrriinncciipplleess ooff ccoonnssoolliiddaattiioonn
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities
(subsidiaries) at year end is contained in Note 29.
The consolidated financial statements incorporate the financial statements of the Parent and Entities controlled by the
Parent (its subsidiaries). The parent controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group.
FFuunnccttiioonnaall aanndd pprreesseennttaattiioonn ccuurrrreennccyy
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian Dollars
which is the parent entity’s functional and presentation currency.
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of
the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items
measured at historical cost continue to be carried at the exchange rate at the date of the transaction.
Exchange differences arising on the translation of monetary items are recognised in the statement of profit or loss and
other comprehensive income.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that
the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in the statement of profit
or loss and other comprehensive income.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
36
Page | 36
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
KKeeyy eessttiimmaattee aanndd jjuuddggeemmeennttss
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied
estimates of future events. Judgements and estimates which are material to the financial report are found in the following
notes.
Note 3
Note 8
Note 13
Note 16
Note 20
Note 22
Note 29
Expenses
Inventories
Deferred exploration and evaluation costs
Impairment
Provisions
Deferred tax liabilities
Share-based payments
Page 39
Page 44
Page 48
Page 50
Page 53
Page 55
Page 62
NNeeww ssttaannddaarrddss aanndd iinntteerrpprreettaattiioonnss aaddoopptteedd
The Group has early adopted AASB 116 Property, Plant and Equipment: Proceeds before Intended Use from 1 July 2021.
Under the amendments, the Group recognises the proceeds from gold sales from mines which are in the pre-
production/commissioning phase in the statement of profit or loss and other comprehensive income, together with the
costs of production.
Prior to the adoption of the amended standard any proceeds from sales in the pre-production/commissioning phase were
deducted from the cost of the mine properties under development asset.
NNeeww ssttaannddaarrddss aanndd iinntteerrpprreettaattiioonnss iissssuueedd bbuutt nnoott yyeett eeffffeeccttiivvee
Refer to note 36
NNootteess ttoo tthhee ffiinnaanncciiaall ssttaatteemmeennttss
The notes include information which is required to understand the financial statements and is material to the operations
and the financial position and performance of the Group.
The notes are organised into the following sections:
•
•
•
•
•
•
Performance for the year
Assets
Liabilities
Equity
Financial instruments and risk management
Other disclosures
PPEERRFFOORRMMAANNCCEE FFOORR TTHHEE YYEEAARR
This section focuses on the results and performance of the Group, covering profitability, return to shareholders via
earnings per share combined with cash generation.
11..
SSEEGGMMEENNTT IINNFFOORRMMAATTIIOONN
Operating segments are reported in a manner that is consistent with the internal reporting provided to the Board and
the executive management team (the chief operating decision makers).
The Group has two reportable segments which comprise the Karlawinda Gold Project and the Mt Gibson Gold Project.
Unallocated items mainly comprise of corporate administrative costs.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 37
37
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
22002222
RReevveennuuee
Revenue
Other income
RReessuulltt
Profit/(loss) before income tax
Finance income/(expense)
Depreciation
Amortisation
AAsssseettss//LLiiaabbiilliittiieess
Segment assets
Segment liabilities
22002211
RReevveennuuee
Revenue
Other income
RReessuulltt
Profit/(loss) before income tax
Finance income/(expense)
Depreciation
AAsssseettss//LLiiaabbiilliittiieess
Segment assets
Segment liabilities
22..
RREEVVEENNUUEE AANNDD OOTTHHEERR IINNCCOOMMEE
AAccccoouunnttiinngg ppoolliicciieess
KKaarrllaawwiinnddaa
$$’’000000
MMtt GGiibbssoonn
$$’’000000
UUnnaallllooccaatteedd
$$’’000000
286,948
-
228866,,994488
124,125
(11,363)
(24,828)
(6,623)
-
187
118877
95
42
113377
99
(13,318)
-
-
-
-
(214)
-
TToottaall
$$’’000000
287,043
229
228877,,227722
110,906
(11,363)
(25,042)
(6,623)
373,901
(162,946)
66,291
(13,054)
8,320
448,512
(24,977)
(200,977)
KKaarrllaawwiinnddaa
$$’’000000
MMtt GGiibbssoonn
$$’’000000
UUnnaallllooccaatteedd
$$’’000000
-
50
5500
2,498
2,757
(9)
289,215
(168,443)
-
-
--
-
-
-
-
-
TToottaall
$$’’000000
110
110
222200
110
60
117700
(7,263)
29
(206)
(4,765)
2,786
(215)
10,380
(692)
299,595
(169,135)
GGoolldd SSaalleess
The Group recognises revenue from gold sales when it satisfies the performance obligation of transferring control of gold
inventory to the bank. The Group has determined that this generally occurs when the sales contract has been entered
into and the bank has physical possession of the gold, as this is the point at which the bank obtains control of the asset.
The transaction price is determined based on the agreed price and the number of ounces delivered. Payment is due upon
delivery into the sales contract.
IInntteerreesstt
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
RReennttaall IInnccoommee
Rental income is recognised on a straight-line basis over the period of the lease term so as to reflect a constant periodic
return on the property.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
38
Page | 38
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
OOtthheerr RReevveennuuee
Other revenue is recognised when it is received or when the right to receive payment is established. All revenue is stated
net of the amount of goods and services tax (“GST”).
GGoovveerrnnmmeenntt GGrraannttss
Government grants are recognised when there is reasonable assurance that conditions attached to the grant will be
complied with and that the grant will be received.
RReevveennuuee
Gold sales
Rental income
OOtthheerr IInnccoommee
Government grant income
Other
Profit on sale of property, plant and equipment
PPhhyyssiiccaall ggoolldd ddeelliivveerryy ccoommmmiittmmeennttss
22002222
$$’’000000
286,948
95
228877,,004433
-
42
187
222299
22002211
$$’’000000
-
110
111100
100
10
-
111100
As part of the risk management policy of the Group and in compliance with the conditions required by the Group’s
financier Macquarie, the Group has entered into gold forward contracts to manage the gold price of a proportion of
anticipated sales of gold. The contracts are accounted for as sale contracts with revenue recognised once gold has been
delivered to Macquarie or its agent. The physical gold delivery contracts are considered a contract to sell a non-financial
item and therefore do not fall within the scope of AASB 9 Financial Instruments. Hence no derivatives are recognised. The
contracted sales price is rounded to the nearest dollar.
WWiitthhiinn oonnee yyeeaarr
- Fixed forward contracts
- Rolled forward contracts
BBeettwweeeenn oonnee aanndd ffiivvee yyeeaarrss
- Fixed forward contracts
GGoolldd ffoorr
pphhyyssiiccaall
ddeelliivveerryy
oouunncceess
59,947
7,140
105,000
117722,,008877
CCoonnttrraacctteedd
ggoolldd ssaallee
pprriiccee
VVaalluuee ooff
ccoommmmiitttteedd
ssaalleess
$$
$$’’000000
2,247
2,681
2,249
134,680
19,142
236,135
338899,,995577
MMaarrkk--ttoo--
mmaarrkkeett
$$’’000000
(24,104)
446
(54,722)
((7788,,338800))
Mark-to-market has been calculated using the average forward price per ounce of $2,726 (2021: $2,379). Mark to market
represents the value of the open contracts at balance date, calculated with reference to the gold average forward price
at that date. A negative amount reflects a valuation in the counterparty’s favour.
33..
EEXXPPEENNSSEESS
AAccccoouunnttiinngg ppoolliicciieess
CCaasshh ccoossttss ooff pprroodduuccttiioonn
Cash costs of production is a component of costs of goods sold and includes direct costs incurred for mining, milling,
laboratory and mine site administration, net of costs capitalised to pre-strip. This category includes movements in the
cost of inventory and any net realisable value write downs.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 39
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
DDeeffiinneedd ccoonnttrriibbuuttiioonn ssuuppeerraannnnuuaattiioonn bbeenneeffiittss
All employees of the Group, located in Australia, receive defined contribution superannuation entitlements, for which
the Group pays the fixed superannuation guarantee contribution (currently 10% of the employee’s average ordinary
salary) to the employee’s superannuation fund of choice. All contributions in respect of employees’ defined contribution
entitlements are recognised as an expense when they become payable. The Group’s obligation with respect to
employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee
contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are
measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current
liabilities in the Group’s statement of financial position.
DDeepprreecciiaattiioonn
Depreciation of mine specific plant, equipment, buildings and infrastructure with useful lives the same or greater than
the expected life of mine are charged to the statement of profit and loss and other comprehensive income on a unit-of-
production basis over the life of the mine using tonnes of ore milled.
Depreciation of other assets with useful life shorter than the life of mine are charged to the statement of comprehensive
income over the assets useful life using the straight line method as follows:
Furniture and equipment
Plant and equipment
Mobile plant and equipment
Buildings and infrastructure
2 - 5 years
2 - 10 years
2 - 5 years
2 - 10 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses
are included in the statement of profit or loss and other comprehensive income.
AAmmoorrttiissaattiioonn
Mine properties are amortised on a unit-of-production bases over the run of mine ore included in the life of mine plan.
BBoorrrroowwiinngg ccoossttss
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs have been expensed in the period in which they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds.
CCoossttss ooff ggooooddss ssoolldd
Cash costs of production
Royalties
Depreciation of mine plant and equipment
Amortisation of mine properties (refer Note 15)
PPeerrssoonnnneell CCoossttss
Salaries and wages
Defined contribution superannuation
Employee bonuses
Other employee benefits expense
Less: Amounts capitalised (1)
Less: Amounts included in cost of goods sold
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
40
22002222
$$’’000000
22002211
$$’’000000
(105,399)
(13,576)
(24,817)
(5,688)
((114499,,448800))
--
--
--
--
--
(16,520)
(10,377)
(1,607)
(1,404)
(2,384)
2,120
12,578
((77,,221177))
(924)
-
(689)
8,371
-
((33,,661199))
Page | 40
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
DDeepprreecciiaattiioonn
Plant and equipment depreciation (refer to Note 11)
Right of use asset depreciation (refer to Note 12)
Other
Less: Amounts capitalised (1)
Less: Amounts included in cost of goods sold
AAmmoorrttiissaattiioonn
Mine properties amortisation (refer note 15)
Derivative amortisation (refer note 9)
Less: Amounts included in cost of goods sold
FFiinnaannccee IInnccoommee//((EExxppeennsseess))
Interest on borrowings
Interest on lease liabilities (refer to Note 18)
Net gain/(loss) on financial instruments at fair value through profit and loss (2)
Unwinding of discount on provisions
Other costs
Less: Amounts capitalised (1)
Interest revenue
22002222
$$’’000000
(18,827)
(6,144)
(71)
-
24,817
((222255))
(5,688)
(935)
5,688
((993355))
(2,841)
(3,441)
(4,458)
(677)
-
-
54
((1111,,336633))
22002211
$$’’000000
(201)
(1,473)
-
1,459
-
((221155))
-
--
--
--
(1,636)
(464)
3,638
-
(20)
1,126
142
22,,778866
(1) Capitalised personnel, depreciation and finance costs are being included as part of Mine properties under development during the construction
and commissioning stage of the Karlawinda Gold Project.
(2) The net gain/loss on financial instruments at fair value through profit or loss, refers to the movement in the fair value of an open sold gold call
option contract recognised when they were entered into on 6 January 2020. For more information on the measurement and recognition of
derivatives, refer to Note 21.
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– UUnniitt--ooff--pprroodduuccttiioonn mmeetthhoodd ooff ddeepprreecciiaattiioonn aanndd aammoorrttiissaattiioonn
The group uses the unit-of-production basis when depreciating/amortising life-of-mine specific assets which results in a
depreciation/amortisation charge proportionate to the depletion of the anticipated remaining life-of-mine production.
Each item’s economic life, which is assessed annually, has due regard for both its physical life limitations and to present
assessments of the available resource of the mine property at which it is located.
44..
EEAARRNNIINNGGSS PPEERR SSHHAARREE
AAccccoouunnttiinngg ppoolliiccyy
Basic earnings per share (“BEPS”) is calculated by dividing the income or loss attributable to the members of the Company
for reporting period, after exclusion of any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the period adjusted for any bonus elements.
Diluted earnings per share (“DEPS”) adjusts the figures used in the determination of BEPS to take into account the after-
tax effect of interest recognised associated with the dilutive potential ordinary shares and the weighted average number
of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares adjusted for
any bonus elements.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 41
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
EEaarrnniinnggss ppeerr sshhaarree
Basic earnings per share (BEPS)
Diluted earnings per share (DEPS)
EEaarrnniinnggss uusseedd iinn ccaallccuullaattiinngg BBEEPPSS aanndd DDEEPPSS
Profit/(loss) attributable to members of the parent entity
WWeeiigghhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess
22002222
CCeennttss
2244..2277
2233..9911
22002222
$$’’000000
89,483
22002222
NNuummbbeerr
22002211
CCeennttss
((11..3399))
((11..3399))
22002211
$$’’000000
(4,765)
22002211
NNuummbbeerr
Weighted average number of ordinary shares used to calculate BEPS
368,756,565
343,354,110
AAddjjuussttmmeennttss ffoorr ccaallccuullaattiioonn ooff DDEEPPSS::
Performance rights
Weighted average number of ordinary shares used to calculate DEPS
5,440,818
374,197,383
-
-
There have been no transactions involving ordinary shares between the reporting date and the date of completion of
these financial statements which would impact the above calculations.
55..
IINNCCOOMMEE TTAAXX
AAccccoouunnttiinngg ppoolliiccyy
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the reporting
date.
22002222
$$’’000000
22002211
$$’’000000
AAmmoouunnttss rreeccooggnniisseedd iinn PPrrooffiitt aanndd LLoossss
((aa)) TTaaxx eexxppeennssee
Current tax
Deferred tax
Total tax expense for the period
((bb)) NNuummeerriiccaall rreeccoonncciilliiaattiioonn bbeettwweeeenn ttaaxx eexxppeennssee aanndd pprree--ttaaxx nneett pprrooffiitt oorr ((lloossss))
Net profit/(loss) before tax
Corporate tax rate applicable
Income tax expense/(benefit) on above at applicable corporate rate
IInnccrreeaassee//((ddeeccrreeaassee)) iinnccoommee ttaaxx dduuee ttoo ttaaxx eeffffeecctt ooff::
Non-deductible expenses
Current year tax losses not recognised
Non assessable income
Movement in unrecognised temporary differences
Recognition of previously unrecognised prior year tax losses
Deductible equity raising costs
Income tax expense/(benefit) attributable to entity
((cc)) AAmmoouunnttss cchhaarrggeedd oorr ((ccrreeddiitteedd)) ddiirreeccttllyy ttoo eeqquuiittyy
Relating to equity raising costs
Other
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
42
-
21,423
2211,,442233
110,906
30%
33,272
1,460
-
-
75
(13,116)
(268)
2211,,442233
(527)
-
((552277))
-
-
--
(4,765)
30%
(1,429)
1,030
828
(30)
(100)
-
(299)
--
-
-
--
Page | 42
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
66..
CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS
AAccccoouunnttiinngg ppoolliiccyy
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less.
Cash at bank
RReeccoonncciilliiaattiioonn ooff pprrooffiitt//((lloossss)) aafftteerr ttaaxx ttoo nneett ccaasshh ffllooww ffrroomm ooppeerraattiioonnss::
Profit/(loss) after income tax`
NNoonn--ccaasshh fflloowwss iinn rreessuulltt
Depreciation
Amortisation
Unwinding of discount on provisions
Unrealised (gain)/loss on derivatives
Fair value (gain)/loss on financial assets
Share based payment
(Profit)/Loss on disposal of fixed assets
Write-off of a payment obligation
CChhaannggeess iinn aasssseettss aanndd lliiaabbiilliittiieess
(Increase)/decrease in receivables
(Increase)/decrease in other current assets
(Increase) in inventories
Increase/(decrease) in payables and accruals
Increase in provisions
Increase in deferred tax liabilities
Cashflow from operating activities
NNoonn--ccaasshh iinnvveessttiinngg aanndd ffiinnaanncciinngg aaccttiivviittiieess
22002222
$$’’000000
6611,,550022
22002222
$$’’000000
22002211
$$’’000000
1100,,331122
22002211
$$’’000000
89,483
(4,765)
25,042
6,623
677
4,458
340
4,893
(187)
-
(909)
(30)
(30,731)
12,918
657
21,423
113344,,665577
215
-
-
(3,638)
(420)
3,277
-
(323)
432
273
(13,996)
(293)
341
-
((1188,,889977))
There were no non-cash investing and financing activities during the year ended 30 June 2022 (2021: Nil).
AASSSSEETTSS
This section shows the assets used to generate the Group’s trading performance.
77..
RREECCEEIIVVAABBLLEESS
AAccccoouunnttiinngg ppoolliiccyy
Receivables include amounts due from customers for services performed in the ordinary course of business. Receivables
expected to be collected within 12 months of the end of the reporting period are classified as current assets. Other
receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any provision for impairment.
The Group applies the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Receivables are recognised at amortised cost, less any allowance for expected credit losses.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
GST receivable
Security deposits
Fuel tax credit receivable
Interest receivable
Other receivables
88..
IINNVVEENNTTOORRIIEESS
AAccccoouunnttiinngg ppoolliiccyy
22002222
$$’’000000
1,551
478
(66)
26
246
22002211
$$’’000000
907
324
45
1
48
22,,223355
11,,332255
Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and
net realisable value. Cost is determined by the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in converting
ore into gold bullion. Net realisable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and costs of selling the final product, including royalties.
Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is measured
on a first-in first-out basis at weighted average cost.
Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date are
classifies as current assets, all other inventories are classified as non-current. The following balances are carried at cost.
CCuurrrreenntt
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
NNoonn--CCuurrrreenntt
Ore stockpiles
22002222
$$’’000000
6,844
4,356
2,497
1,216
22002211
$$’’000000
10,103
2,817
504
641
1144,,991133
1144,,006655
2299,,888833
--
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– IInnvveennttoorriieess
Net realisable value tests are performed at each reporting date and represent the estimated forecast sales price of the
gold contained in inventories, when it is expected to be realised, less estimated costs to complete production and bring
the product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile,
the number of contained gold ounces based on assay data, and the estimated recovery percentage. Stockpile tonnages
are verified by periodic surveys.
99..
FFIINNAANNCCIIAALL AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
The Group’s financial assets include cash and cash equivalents, trade and other receivables, term deposits, equity
investments and gold forward asset.
RReeccooggnniittiioonn aanndd iinniittiiaall mmeeaassuurreemmeenntt
All financial assets are initially recognised when the Group becomes party to the contractual provisions of the instrument
except trade receivables which are initially recognised when they are originated.
A financial asset (excluding trade receivables is initially measured at fair value plus or minus transaction costs that are
directly attributable to its acquisition or issue, except where the instruments are classified ‘at fair value through profit or
loss’ (“FVTPL”), in which case transaction costs are expensed to profit or loss immediately.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
44
Page | 44
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
CCllaassssiiffiiccaattiioonn aanndd ssuubbsseeqquueenntt mmeeaassuurreemmeenntt
On initial recognition, a financial asset is classified as measured at:
• at amortised cost;
•
• FVTPL.
‘fair value in other comprehensive income’ (“FVOCI”) – equity investment; or
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model
for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first
reporting period following the changes.
A financial asset is measured at amortised costs if it meets both of the following conditions and is not designated as
FVTPL:
•
•
It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding
On initial recognition of an equity investment that is not being held for trading, the Group may irrevocably elect to present
subsequent changes to the investment’s fair value in OCI. This election is made on an investment -by-investment basis.
All financial assets not measured at amortised cost or FVOCI are measured at FVTPL. This includes all derivative financial
assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.
AAmmoorrttiisseedd ccoosstt
Amortised cost is calculated as:
the amount at which the financial asset is measured at initial recognition;
less principal repayments;
•
•
• plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the
maturity amount calculated using the effective interest method; and
less any reduction for impairment.
•
The effective interest method is used to allocate interest income or interest expense over the relevant period and is
equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs
and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual
term) of the financial instrument to the net carry amount of the financial asset.
Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential
recognition of an income or expense in profit or loss.
The Group does not designate any interest in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial statements.
FFaaiirr vvaalluueess
The carrying amounts and estimated fair values of all of the Group’s financial assets recognised in the financial statements
are materially the same. The methods and assumptions used to estimate the fair value of the financial assets are disclosed
in the respective notes.
DDeerreeccooggnniittiioonn
The Group derecognises a financial asset when:
•
•
the contractual rights to receive the cash flows from the financial asset expire; or
it transfers the rights to receive the contractual cash flows in a transaction in which either:
-
-
substantially all of the risks and rewards of ownership of the financial asset are transferred; or
the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not
retain control of the financial asset.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
FFiinnaanncciiaall aasssseettss
CCuurrrreenntt
Gold forward asset
Equity investments
NNoonn--ccuurrrreenntt
Gold forward asset
22002222
$$’’000000
1,751
1,348
33,,009999
33,,006677
22002211
$$’’000000
1,237
1,688
22,,992255
44,,551166
GGoolldd ffoorrwwaarrdd aasssseett
The gold forward asset refers to the fair value of the premium income on the sold gold call option contract entered into
on 6 January 2020. The sold gold call option premium was added to the price of the Company’s gold forward contracts
(disclosed in Note 26). Subsequent measurement of the gold forward asset which matures on 30 June 2025 is at amortised
cost. Amortisation expense in relation to the gold forward asset for the year ended 30 June 2022 was $935,000 (2021:nil)
(refer to Note 3).
EEqquuiittyy iinnvveessttmmeennttss
As at 1 July
Additions
Fair value adjustment
As at 30 June
FFaaiirr vvaalluuee ooff lliisstteedd sshhaarreess aanndd aassssuummppttiioonnss
BBllaacckkEEaarrtthh MMiinneerraallss NNLL
Fair value per listed share
Closing quoting bid price per share
DDiissccoovvEExx RReessoouurrcceess LLiimmiitteedd
Fair value per listed share
Closing quoting bid price per share
1100.. AASSSSEETTSS HHEELLDD FFOORR SSAALLEE
AAccccoouunnttiinngg ppoolliiccyy
1,688
-
(340)
11,,334488
22002222
$0.074
$0.074
$0.004
$0.004
68
1,200
420
11,,668888
22002211
$0.094
$0.094
$0.005
$0.005
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable
that they will be recovered primarily through the sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to
sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets, except
deferred tax assets, employee benefits assets or investment property, which continue to be measured in accordance with
the Group’s other accounting policies.
Impairment losses on initial classification as held-for-sale or held-for-distribution and subsequent gains and losses on
remeasurement are recognised in profit or loss. Once classified as held-for-sale, intangible assets and property, plant and
equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
The held-for-sale property is subject to review and revalued on the basis of independent valuations. Any revaluation
adjustment to the carrying amount is recognised in other comprehensive income and accumulated in equity under the
heading of asset revaluation reserve.
Property asset
Impairment
Translation adjustment
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
46
22002222
$$’’000000
2,500
-
-
22,,550000
22002211
$$’’000000
4,500
(1,800)
(200)
22,,550000
Page | 46
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
The Group has put its freehold property asset located in Antananarivo, Madagascar up for sale. The property covers an
area of 19,373m2 containing several buildings, including offices, warehouses and villa accommodation.
A valuation was completed by Cabinet D’Expertise Audit Techniques Et Conseils Qualities in June 2020 of 7,235,880,000
Ariary which translates to AUD $2,603,874 as at 30 June 2022 (2021: AUD $2,544,038). Based on the current valuation,
the Directors considered the carrying value appropriate for the year ended 30 June 2022.The fair value of the freehold
land was determined based on the market comparable approach that reflects recent transaction prices for similar
properties.
1111.. PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT
AAccccoouunnttiinngg ppoolliiccyy
Each class of property, plant and equipment is carried at cost or fair value, less, where applicable, any accumulated
depreciation and impairment losses.
PPrrooppeerrttyy
Land and Buildings are measured using a cost model in accordance with paragraph 31 of AASB 116 Property, Plant and
Equipment. Any revaluation adjustment to the carrying amount of land and buildings is recognised in other
comprehensive income and accumulated in equity under the heading of asset revaluation reserve.
IInnffrraassttrruuccttuurree,, mmoobbiillee ppllaanntt aanndd eeqquuiippmmeenntt,, ppllaanntt aanndd eeqquuiippmmeenntt aanndd ffuurrnniittuurree aanndd eeqquuiippmmeenntt
The value of infrastructure, mobile plant and equipment, plant and equipment and furniture and equipment is measured
as the cost of the asset, less accumulated depreciation and impairment. The cost of the asset also includes the cost of
assembly and replacing parts that are eligible for capitalisation, the cost of major inspections and an initial estimate of
the cost of dismantling and removing the item from site at the end of its useful life.
CCaappiittaall wwoorrkk iinn pprrooggrreessss
The value of capital WIP is measured as the cost of the asset less impairment. The cost of the asset also includes the cost
of assembly and replacing parts that are eligible for capitalisation, the cost of major inspections and an initial estimate of
the cost of dismantling and removing the item from site at the end of its useful life.
BBuuiillddiinnggss &&
IInnffrraassttrruuccttuurree
PPllaanntt &&
EEqquuiippmmeenntt
MMoobbiillee PPllaanntt
&& EEqquuiippmmeenntt
FFuurrnniittuurree &&
EEqquuiippmmeenntt
CCaappiittaall
WWIIPP
TToottaall
$$’’000000
$$’’000000
$$’’000000
$$’’000000
$$’’000000
$$’’000000
Net carrying amount at 1 July 2020
Additions
Transfers to mine properties
Transfers between asset classes
Depreciation
Net carrying amount at 30 June 2021
As at 30 June 2021
Cost
Accumulated depreciation
Net carrying amount at 30 June 2021
-
-
-
-
-
-
-
-
-
83
180
-
441
(70)
663344
899
(265)
663344
-
-
-
-
-
--
-
-
--
343
196
-
20
(131)
442288
876
(448)
442288
443
109
(78)
(461)
-
1133
13
-
1133
869
485
(78)
-
(201)
11,,007755
1,788
(713)
11,,007755
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 47
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
BBuuiillddiinnggss &&
IInnffrraassttrruuccttuurree
PPllaanntt &&
EEqquuiippmmeenntt
MMoobbiillee PPllaanntt
&& EEqquuiippmmeenntt
FFuurrnniittuurree &&
EEqquuiippmmeenntt
CCaappiittaall
WWIIPP
Net carrying amount at 1 July 2021
Additions
Transfers from mine properties under
development
Transfers between asset classes
Depreciation
Amounts written off
$$’’000000
-
1,574
$$’’000000
634
1,230
46,520
113,574
-
(269)
(5,045)
(11,837)
(62)
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
As at 30 June 2022
Cost
Accumulated depreciation
48,094
(5,045)
115,216
(11,946)
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
1122.. RRIIGGHHTT--OOFF--UUSSEE AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
$$’’000000
$$’’000000
$$’’000000
428
416
13
2,632
TToottaall
$$’’000000
1,075
6,514
-
662
3,050
269
(832)
(1)
33,,114488
3,980
(832)
33,,114488
7,333
-
(1,113)
(55)
77,,000099
-
-
-
-
170,477
-
(18,827)
(118)
22,,664455
115599,,112211
8,377
(1,368)
2,645
178,312
-
(19,191)
77,,000099
22,,664455
115599,,112211
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability;
• Any lease payments made at or before the commencement date less any lease incentives received;
• Any initial direct costs;
• Any restoration costs.
The right-of-use asset is subsequently depreciated using the straight-line method over the term of the lease. In addition,
the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for remeasurements of the lease
liability.
Payments associated with short-term leases that have terms of 12 months or less and leases of low-value assets that have
a replacement value of less than $5,000 are recognised on a straight-line basis as an expense in profit or loss. Assets
arising from a lease are initially measured on a present value basis.
As at 1 July
Additions to right-of-use assets
Depreciation charge for the year (refer to Note 3)
As at 30 June
22002222
$$’’000000
51,591
2,525
(6,144)
4477,,997722
22002211
$$’’000000
218
52,846
(1,473)
5511,,559911
Payments associated with short-term leases and leases of low value assets for the year were $1,477,000 (2021:
$1,626,000).
1133.. DDEEFFEERRRREEDD EEXXPPLLOORRAATTIIOONN AANNDD EEVVAALLUUAATTIIOONN CCOOSSTTSS
AAccccoouunnttiinngg ppoolliiccyy
Exploration and evaluation expenditure incurred is capitalised only when that expenditure is attributable to a defined
area of interest for which the Group has the rights to explore, evaluate and develop. Tenement acquisition costs are
initially capitalised. Costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area, sale of the respective areas of interest or where activities in the area have not yet
reached a stage, which permits reasonable assessment of the existence of economically recoverable reserves.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and
then reclassified to mine properties under development. No amortisation is charged during the exploration and
evaluation phase.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
Exploration and evaluation assets are assessed for impairment if:
•
the period for which the right to explore in the area has expired during the period or will expire in the near future,
and is not expected to be renewed;
• substantive expenditure on further exploration and evaluation of mineral resources is neither budgeted nor planned;
• sufficient data exists to determine technical feasibility and commercial viability; and
•
facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of
impairment testing, exploration and evaluation assets are allocated to cash-generating units (“CGUs”) to which the
exploration activity relates. The CGU is not larger than the area of interest.
As at 1 July
Expenditure for the period
Acquisition of exploration and evaluation assets – MGGP (refer note 27)
Acquisition of tenements (refer note 23)
Transfer to mine properties under development
As at 30 June
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– EExxpplloorraattiioonn aanndd eevvaalluuaattiioonn eexxppeennddiittuurree
22002222
$$’’000000
2,698
21,789
51,560
1,250
-
7777,,229977
22002211
$$’’000000
542
3,154
-
-
(998)
22,,669988
EExxpplloorraattiioonn eexxppeennddiittuurree
Tenement acquisition costs are initially capitalised together with other exploration and evaluation expenditure. Costs
are only carried forward to the extent that they are expected to be recouped through the successful development of a
defined area of interest for which the Group has the rights to explore, evaluate and develop, the sale of the respective
areas of interest or where activities in the area of interest have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
PPllaannnneedd eexxpplloorraattiioonn eexxppeennddiittuurree
Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be required
to be met under the relevant legislation should the Group wish to retain tenure on all current tenements in which the
Group has an interest.
The terms and conditions under which the Group retains title to its various tenements require it to meet tenement rentals
and minimum levels of exploration expenditure as gazetted by the Western Australian government, as well as local
government rates and taxes.
Within one year
Exploration commitments at reporting date not recognised as liabilities
22002222
$$’’000000
3,313
33,,331133
22002211
$$’’000000
1,723
11,,772233
Annual exploration expenditure after one year will be a similar commitment to that within one year, however this amount
is increased if new exploration tenements are added to the Group’s portfolio or reduced, if exploration tenements are
removed from the Group’s portfolio.
1144.. MMIINNEE PPRROOPPEERRTTIIEESS UUNNDDEERR DDEEVVEELLOOPPMMEENNTT
AAccccoouunnttiinngg ppoolliiccyy
Mine properties under development represents the costs incurred in preparing mines for production and includes plant
and equipment under construction and operating costs incurred before commercial production commences. These costs
are capitalised to the extent they are expected to be recouped through successful exploitation of the related mining
leases.
Once production commences, these costs are transferred to property, plant and equipment and mine properties, as
relevant, and are depreciated and amortised using the units-of-production method based on the estimated economically
recoverable reserves to which they relate or are written off if the mine property is abandoned.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
As at 1 July
Construction expenditure capitalised
Pre-production expenditure capitalised
Rehabilitation additions
Transfer from exploration
Transfers from plant and equipment
Transfer to mine properties (refer note 15)
Transfer to property plant & equipment (refer note 11)
As at 30 June
22002222
$$’’000000
208,323
18,000
(233)
-
-
-
(55,613)
(170,477)
22002211
$$’’000000
66,277
103,748
20,070
17,152
998
78
-
-
--
220088,,332233
Transfers to plant and equipment relate to construction expenditure on the Karlawinda Gold Project.
1155.. MMIINNEE PPRROOPPEERRTTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
Mine properties represent expenditure in respect of exploration, evaluation, feasibility, pre-production operating costs
incurred by the Group prior to the commencement of production and rehabilitation assets. All expenditure is carried
forward to the extent that it is expected to be recouped from future revenues. If additional expenditure is incurred in
respect of a mine property after production has commenced such expenditure is carried forward as part of the cost of
the mine property if it is expected to be recouped from future revenues otherwise the expenditure is classified as part of
the cost of production and expensed as incurred.
Mine properties are amortised on a unit-of production basis over the life of the mine using tonnes of ore milled.
OOtthheerr PPrree--pprroodduuccttiioonn RReehhaabbiilliittaattiioonn
Net carrying amount at 1 July 2021
Transfers from mine properties under development 1
Additions
Rehabilitation provision adjustments
Amortisation (refer note 3)
Net carrying amount at 30 June 2022
As at 30 June 2022
Cost
Accumulated depreciation
Net carrying amount at 30 June 2022
(1)
refer note 14
1166..
IIMMPPAAIIRRMMEENNTT OOFF NNOONN--FFIINNAANNCCIIAALL AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
$$’’000000
-
15,477
-
-
(1,726)
1133,,775511
15,477
(1,726)
1133,,775511
$$’’000000
-
18,865
-
-
(1,957)
1166,,990088
18,865
(1,957)
1166,,990088
TToottaall
$$’’000000
-
$$’’000000
-
21,271
55,613
149
(3,446)
(2,005)
1155,,996699
149
(3,446)
(5,688)
4466,,662288
17,974
(2,005)
1155,,996699
52,316
(5,688)
4466,,662288
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether
there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the
assets, being the higher of the asset’s fair value less costs of disposal and value in use, is compared to the asset’s carrying
value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss
and other comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
There have been no impairment indicators during the year.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
50
Page | 50
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– DDeetteerrmmiinnaattiioonn ooff mmiinneerraall rreessoouurrcceess aanndd rreesseerrvveess
The Group estimates its Mineral Resources and Ore Reserves in accordance with the Australasian Code of Reporting for
Mineral Resources and Ore Reserves 2012 (the “JORC Code”). The information on mineral resources and ore reserves was
prepared by or under supervision of Competent Persons as defined under the JORC Code.
The determination of mineral resources and ore reserves impacts the accounting for asset carrying values.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves, and assumptions that are
valid at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of Reserves and may ultimately result in Reserves being restated
LLIIAABBIILLIITTIIEESS
This section shows the liabilities incurred as a result of the trading activities of the Group.
1177.. TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
AAccccoouunnttiinngg ppoolliiccyy
Trade and Other payables are initially recognised at fair value through profit or loss and subsequently measured at
amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year
that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these
goods and services. Trade and other payables are presented as current liabilities unless payment is not due within 12
months.
Trade payables
Accrued expenses
Other payables
1188.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
22002222
$$’’000000
8,169
12,156
7,082
2277,,440077
22002211
$$’’000000
6,100
11,200
1,645
1188,,994455
The nature of the Group’s leasing activities includes contracts for mining services, drilling, haulage, and power generation
contracts. Additionally, office leases and office equipment have also been included.
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses
the definition of a lease in AASB 16.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available
for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged
to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of
the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease
term on a straight-line basis.
Liabilities arising from a lease are initially measured on a present value basis.
Lease liabilities include the net present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that are based on an index or a rate;
• Amounts expected to be payable by the lessee under residual value guarantees;
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the
lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of
the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it
will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
Payments associated with short-term leases that have a term of 12 months or less and leases of low-value assets that
have a replacement value of $5,000 or less are recognised on a straight-line basis as an expense in profit or loss.
CCuurrrreenntt
Lease liabilities
NNoonn--CCuurrrreenntt
Lease liabilities
22002222
$$’’000000
22002211
$$’’000000
77,,661133
77,,445522
3377,,882222
4433,,660033
Interest expense in relation to lease liabilities for the year ended 30 June 2022 was $3,441,000 (2021: $464,000) (refer
to Note 3).
Total cash outflows relating to leases during the year were $10,864,000 (2021: $952,000) comprising, principal
($7,423,000) and interest ($3,441,000) payments.
The Group’s contracts that contain leases that are structured as variable payments are not included in the measurement
of lease liabilities under AASB 16. Variable lease payments for the year ended 30 June 2022, including non-lease
components such as labour, totalled $77,199,000 (2021: $16,009,000).
Payments associated with short-term leases and leases of low value assets for the year were $1,477,000 (2021:
$1,626,000).
1199.. BBOORRRROOWWIINNGGSS
AAccccoouunnttiinngg ppoolliiccyy
Interest bearing borrowings are initially measured at fair value, net of directly attributable transaction costs. After initial
recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective interest rate
method.
Borrowings which are due to be settled within 12 months after the balance sheet date are included in current borrowings
in the balance sheet even though the original term was for a period longer than 12 months or an agreement to refinance,
or to reschedule payments, on a long-term basis is completed after the balance sheet date and before the financial
statements are authorised for issue. Other borrowings to be settled more than 12 months after the balance sheet date
are included in non-current borrowings in the balance sheet.
CCuurrrreenntt
Bank loans
NNoonn--CCuurrrreenntt
Bank loans
22002222
$$’’000000
22002211
$$’’000000
38,386
32,000
27,000
6655,,338866
38,000
7700,,000000
Borrowings comprise of amounts drawn down on a Project Loan Facility of $100 Million with Macquarie Bank Limited
(“Macquarie”). The facility accrues interest at the bank bill rate plus 3% and is repayable in various instalments over a
term ending 30 June 2025 however, voluntary repayments can be made in accordance with the facility agreement. The
facility includes customary liquidity and debt service covenants. The Group is in compliance with its covenants.
The bank holds a first ranking, registered fixed and floating charge over all the assets of Capricorn Metals Ltd and its
wholly owned subsidiary, Greenmount Resources Pty Ltd (owner of the Karlawinda Gold Project) as security for the
facility provided by Macquarie.
In July 2022 the Company refinanced the loan with Macquarie. Refer to note 35 for details.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
2200.. PPRROOVVIISSIIOONNSS
AAccccoouunnttiinngg ppoolliiccyy
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of time value of money and the risks specific to the liability.
A provision for site rehabilitation is recognised in respect of the estimated cost of rehabilitation and restoration of the
areas disturbed by mining activities up to the reporting date, but not yet rehabilitated.
RReehhaabbiilliittaattiioonn pprroovviissiioonn
A provision for rehabilitation is recognised in respect of the estimated costs of rehabilitation of the areas that remain
disturbed by mining activities up to the reporting date.
When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related
mining assets.
At each reporting date the rehabilitation is re-measured to reflect any changes in discount and inflation rates and timing
of amounts to be incurred. Additional disturbances or changes in rehabilitation costs will be recognised as additions or
changes to the corresponding asset and rehabilitation provision, prospectively from the date of change. Where the
carrying value of the related asset has been reduced to nil either through amortisation or impairment, changes to
estimated costs are recognised immediately in the statement of profit or loss and other comprehensive income.
SShhoorrtt--tteerrmm eemmppllooyyeeee bbeenneeffiittss
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits
(other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual
reporting period in which the employees render the related service, including wages, salaries and annual leave
entitlements. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the
obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and annual leave are recognised as a
part of current trade and other payables in the statement of financial position. The Group’s obligations for employees’
long service leave entitlements are recognised as provisions in the statement of financial position.
OOtthheerr lloonngg--tteerrmm eemmppllooyyeeee bbeenneeffiittss
Provision is made for employees’ long service leave entitlements not expected to be settled wholly within 12 months
after the end of the annual reporting period in which the employees render the related service. Other long-term
employee benefits are measured at the present value of the expected future payments to be made to employees.
Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee
departures and are discounted at rates determined by reference to market yields at the end of the reporting period on
corporate bonds that have maturity dates that approximate the terms of the obligations. Any re-measurements for
changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods
in which the changes occur.
The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of
financial position, except where the Group does not have an unconditional right to defer settlement for at least 12 months
after the end of the reporting period, in which case the obligations are presented as current provisions.
CCuurrrreenntt
Annual leave
Rehabilitation
NNoonn--CCuurrrreenntt
Long service leave
ROU asset demobilisation
Rehabilitation
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002222
$$’’000000
1,076
11
11,,008877
118
703
28,405
2299,,222266
22002211
$$’’000000
487
82
556699
50
244
21,189
2211,,448833
Page | 53
53
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
PPrroovviissiioonn ffoorr rreehhaabbiilliittaattiioonn
As at 1 July
Provisions raised during the year
Provisions used during the year
Provisions re-measured during the year
Provisions assumed during the year – MGGP (refer note 27)
Unwinding of the discount
As at 30 June
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– RReehhaabbiilliittaattiioonn pprroovviissiioonn
22002222
$$’’000000
21,271
149
(15)
(3,446)
9,779
678
2288,,441166
22002211
$$’’000000
4,119
17,152
-
-
-
-
2211,,227711
The Group assesses site rehabilitation liabilities on an annual basis. The provision recognised is based on an assessment
of the estimated cost of closure and reclamation of the areas using internal information concerning environmental issues
in the exploration and previously mined areas, discounted to present value.
Significant estimation is required in determining the provision for site rehabilitation as there are many factors that may
affect the timing and ultimate cost to rehabilitate sites where mining and/or exploration activities have previously taken
place.
These factors include:
future development/exploration activity;
•
• changes in the costs of goods and services required for restoration activity; and
• changes to the legal and regulatory framework.
These factors may result in future actual expenditure differing from the amounts currently provided.
2211.. FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
The Group’s financial liabilities include trade and other payables, lease liabilities, gold forward liability and borrowings.
RReeccooggnniittiioonn aanndd iinniittiiaall mmeeaassuurreemmeenntt
All financial liabilities are initially recognised when the Group becomes party to the contractual provisions of the
instrument except trade receivables which are initially recognised when they are originated.
A financial liability is initially measured at fair value plus or minus transaction costs that are directly attributable to its
acquisition or issue, except where the instruments are classified ‘at fair value through profit or loss’ (“FVTPL”), in which
case transaction costs are expensed to profit or loss immediately.
CCllaassssiiffiiccaattiioonn aanndd ssuubbsseeqquueenntt mmeeaassuurreemmeenntt
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is
classified as held for trading, it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are
recognised in profit or loss.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in profit or loss.
AAmmoorrttiisseedd ccoosstt
Amortised cost is calculated as:
the amount at which the financial liability is measured at initial recognition;
less principal repayments;
•
•
• plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the
maturity amount calculated using the effective interest method; and
less any reduction for impairment.
•
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
The effective interest method is used to allocate interest income or interest expense over the relevant period and is
equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs
and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual
term) of the financial instrument to the net carry amount of the financial liability.
Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential
recognition of an income or expense in profit or loss.
The Group does not designate any interest in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial statements.
FFaaiirr vvaalluueess
The carrying amounts and estimated fair values of all of the Group’s financial liabilities recognised in the financial
statements are materially the same. The methods and assumptions used to estimate the fair value of the financial
liabilities are disclosed in the respective notes.
DDeerreeccooggnniittiioonn
The Group derecognises a financial liability when its terms are modified and the cash flows of the modified liability are
substantially different, in which case a new financial liability based on the modified terms is recognised at fair value
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognised in the profit or loss.
Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The
difference between the carrying value of the financial liability extinguished or transferred to another party and the fair
value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
DDeerriivvaattiivvee ffiinnaanncciiaall iinnssttrruummeennttss aanndd hheeddggee aaccccoouunnttiinngg
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered
into and are subsequently remeasured to fair value.
The method of recognising any re-measurement gain or loss depends on the nature of the item being hedged. Any
changes in the fair value of a derivative instrument that does not qualify for hedge accounting are recognised immediately
in the income statement.
The Group’s derivative financial instruments include the gold forward liability which does not qualify for hedge accounting
and therefore any changes in the fair value of the gold forward liability are recognised immediately in the income
statement.
Gold forward liability
22002222
$$’’000000
1111,,554400
22002211
$$’’000000
77,,008833
The gold forward liability refers to the fair value of the sold gold call option contract entered into on 6 January 2020.
Subsequent measurement of the sold gold call option contracts, which expire on 30 June 2025, is at fair value at balance
date with any changes in the fair value immediately recognised in the profit or loss.
2222.. DDEEFFEERRRREEDD TTAAXX LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will
be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in profit and loss except where it relates to items that may be credited directly to equity,
in which case the deferred tax is adjusted directly against equity.
Deferred revenue tax assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences can be utilised.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
DDeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
((aa)) RReeccooggnniisseedd ddeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
DDeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Prepayments
Exploration and mine properties
Inventory
Plant and equipment
Investments
Other
Gross deferred tax liabilities
Set-off of deferred tax assets
Net deferred tax liabilities
Deferred tax assets
Employee provisions
Other provisions and accruals
Derivative assets and liabilities
Rehabilitation provision
Blackhole previously expensed
Blackhole equity raising costs
Tax losses
Other
Gross deferred tax assets
Set-off of deferred tax liabilities
Net deferred tax assets
((bb)) RReeccoonncciilliiaattiioonn ooff ddeeffeerrrreedd ttaaxx,, nneett::
Opening balance at 1 July – net deferred tax assets/(liabilities)
Income tax (expense)/benefit recognised in profit or loss
Income tax (expense)/benefit recognised in equity
Closing balance at 30 June – net deferred tax assets/(liabilities)
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– DDeeffeerrrreedd ttaaxx aasssseettss
22002222
$$’’000000
30%
19
17,066
4,970
39,835
-
7
61,897
(41,001)
2200,,889966
358
62
2,017
8,525
12
527
29,177
323
41,001
(41,001)
--
-
(21,423)
527
((2200,,889966))
22002211
$$’’000000
30%
-
7,557
192
67
26
1
7,843
(7,843)
--
161
27
399
-
20
-
6,768
468
7,843
(7,843)
--
-
-
-
--
Judgement is required in determining whether deferred tax assets are recognised on the balance sheet. Deferred tax
assets, including those arising from unutilised tax losses, require management to assess the likelihood that the Group will
generate taxable earnings in future periods, in order to utilise recognised deferred tax assets.
Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax
laws in Australia.
To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to
realise the net deferred tax assets recorded at the reporting date could be impacted. Additionally, future changes in tax
laws in Australia could limit the ability of the Group to obtain tax deductions in future periods.
TTaaxx ccoonnssoolliiddaattiioonn
The Company and its wholly-owned Australian resident entities became part of a tax-consolidated group on 1 July 2016.
As a consequence, all members of the tax-consolidated group are taxed as a single entity from that date. The head
entity within the tax consolidated group is Capricorn Metals Limited.
The head entity, in conjunction with other members of the tax-consolidated group, have entered into a tax funding
arrangement which sets out the funding obligations of members of the tax-consolidated group in respect of tax
amounts. Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the subsidiaries
are assumed by the head entity and are recognised by the Company as intercompany receivables (or payables).
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of
the head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
The Company recognises deferred tax assets arising from unused tax losses of the tax-consolidated group to the extent
that it is probable that future taxable profits of the tax-consolidated group will be available against which asset can be
utilised. Any subsequent period adjustment to deferred tax assets arising from unused tax losses as a result of revised
assessments of the probability of recoverability is recognised by the head entity only.
The head entity in conjunction with other members of the tax-consolidated group has also entered into a tax sharing
agreement. The tax sharing agreement provides for the determination of the allocation of income tax liabilities
between the entities should the head entity default on its tax payment obligations. No amounts have been recognised
in the financial statements in respect of this agreement as payment of any amounts under the tax sharing agreement is
considered remote.
EEQQUUIITTYY
This section outlines how the Group manages its capital.
2233..
IISSSSUUEEDD CCAAPPIITTAALL
AAccccoouunnttiinngg ppoolliiccyy
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction
costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds
received.
Ordinary shares - issued and fully paid
MMoovveemmeenntt iinn oorrddiinnaarryy sshhaarreess oonn iissssuuee
As at 1 July 2020
Issue of shares
Issued on exercise of options
Transaction costs
As at 30 June 2021
As at 30 June 2021
Issue of shares on exercise of options (1)
Issue of shares on exercise of performance rights (2)
Issue of shares on acquisition - MGGP (3)
Issue of shares on acquisition - Tenements (4)
Transaction costs
Tax effect of deferred tax deductions posted directly to equity
22002222
$$’’000000
220033,,552244
NNuummbbeerr ooff
SShhaarreess
326,801,473
17,000,000
6,218,006
-
335500,,001199,,447799
350,019,479
10,000,000
3,275,000
8,285,954
344,752
-
-
22002211
$$’’000000
118800,,662299
$$’’000000
145,040
32,300
4,536
(1,247)
118800,,662299
180,629
6,000
-
15,160
1,250
(42)
527
As at 30 June 2022
337711,,992255,,118855
220033,,552244
1. On 28 July 2021, 10,000,000 options were exercised at an exercise price of $0.60 each.
2. During the year 3,275,000 performance rights were exercised for nil value to employees in accordance with the
shareholder approved Performance Rights Plan.
3. On the 28 July 2021, 8,285,954 shares with a fair value of $1.83 a share were issued in consideration for the
acquisition of the Mt Gibson Gold project as announced on 28 July 2021.
4. On the 29 June 2022, 344,752 shares with a fair value of $3.62 a share were issued in consideration for the acquisition
of the Mumbakine well project as announced on 30 May 2022.
There are no preference shares on issue. The holders of ordinary shares are entitled to receive dividends and the proceeds
on winding up of the parent entity in proportion to the number of shares held.
At shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
The Company does not have authorised capital or par value in respect of its shares.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
2244.. RREESSEERRVVEESS
As at 1 July 2020
Share-based payment transactions (refer note 28)
Translation movement for the year
Transfers (1)
As at 30 June 2021
Share-based payment transactions (refer note 28)
Translation movement for the year
Transfers (1)
As at 30 June 2022
SShhaarree--bbaasseedd
ppaayymmeenntt
rreesseerrvvee
FFoorreeiiggnn ccuurrrreennccyy
ttrraannssllaattiioonn
rreesseerrvvee
$$’’000000
9,422
3,277
-
(1,200)
1111,,449999
4,893
-
(9,243)
77,,114499
$$’’000000
(703)
-
(149)
-
((885522))
-
(196)
-
((11,,004488))
TToottaall
RReesseerrvveess
$$’’000000
8,719
3,277
(149)
(1,200)
1100,,664477
4,893
(196)
(9,243)
66,,110011
(1)
Transfer refers to options and performance rights that were either exercised, forfeited or expired in current and previous periods that have
been transferred to retained earnings (refer to Note 25).
SShhaarree--bbaasseedd ppaayymmeennttss rreesseerrvvee
The share-based payments reserve is used to record the value of share-based payments including options and
performance rights to Directors, employees, including KMPs, as part of their remuneration.
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The foreign currency translation reserve records exchange differences arising on translation of foreign controlled
subsidiaries.
2255.. RREETTAAIINNEEDD EEAARRNNIINNGGSS
As at 1 July
Profit/(loss) for the year
Transfers (1)
As at 30 June
22002222
$$’’000000
(60,816)
89,483
9,243
3377,,991100
22002211
$$’’000000
(57,251)
(4,765)
1,200
((6600,,881166))
(1) Transfers refers to options and performance rights that were either forfeited or expired in the current period that have been transferred from
reserves (refer to Note 24).
RRIISSKK
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s
financial position and performance
2266.. FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
In common with other businesses, the Group is exposed to risks that arise from its use of financial instruments. The
Group’s key financial instruments comprise cash and cash equivalents, trade and other receivables, gold forward assets,
trade and other payables, lease liabilities, gold forward liabilities and borrowings.
This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to
measure them. Further quantitative information in respect of those risks is presented throughout these financial
statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated
in this note.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies. The
Group’s risk management policies and objectives are designed to minimise the potential impacts of these risks on the
Group where such impacts may be material.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the
Group’s competitiveness and flexibility.
CCaatteeggoorriieess ooff ffiinnaanncciiaall iinnssttrruummeennttss
FFiinnaanncciiaall aasssseettss
Cash and cash equivalents
Receivables
Equity investments
Gold forward asset
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Lease liabilities
Gold forward liability
Borrowings
MMaarrkkeett rriisskk
22002222
$$’’000000
61,502
2,235
1,348
4,817
6699,,990022
27,407
45,435
11,540
65,386
22002211
$$’’000000
10,312
1,325
1,688
5,752
1100,,007777
18,945
51,055
7,083
70,000
114499,,776688
114477,,008833
FFoorreeiiggnn ccuurrrreennccyy rriisskk
The Group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and services in
currencies other than the Group’s functional and presentation currency.
The Group’s revenue is derived from the sale of gold in Australian dollars and costs are mainly incurred in Australian
dollars although as gold is globally traded in US dollars, the Group is exposed to foreign currency risk. The Group hedges
its gold ounces in Australian dollars, which provides for some coverage of foreign currency risk.
The Group is occasionally exposed to foreign currency risk when long lead items are purchased in a currency other than
Australian dollars. The Group maintains all of its cash in Australian dollars and does not currently hedge these purchases.
As a result of subsidiary companies being registered in Madagascar, the Group's statement of financial position can be
affected by movements in the AUD$/Ariary exchange rates. The Group does not seek to hedge this exposure given
there are minimal operations in these foreign subsidiaries and therefore minimal risk as a result of any changes in
foreign currency.
In the reporting period, the Group was not exposed to material financial risks of changes in foreign currency exchange
rates.
IInntteerreesstt rraattee rriisskk
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
FFiixxeedd rraattee iinnssttrruummeennttss
Cash and cash equivalents
Term deposits
Lease liabilities
VVaarriiaabbllee rraattee iinnssttrruummeennttss
Cash and cash equivalents
Borrowings
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002222
$$’’000000
-
478
(45,435)
((4444,,995577))
61,502
(65,386)
((33,,888844))
22002211
$$’’000000
2,369
324
(51,055)
((4488,,336622))
7,941
(70,000)
((6622,,005599))
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59
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
FFaaiirr vvaalluuee sseennssiittiivviittyy aannaallyyssiiss ffoorr ffiixxeedd rraattee iinnssttrruummeennttss
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore,
a change at reporting date would not affect profit or loss.
CCaasshh ffllooww sseennssiittiivviittyy aannaallyyssiiss ffoorr vvaarriiaabbllee rraattee iinnssttrruummeennttss
A change of 200 basis points (2021: 100 basis points) in interest rates at the reporting date would have
increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables remain constant.
22002222
220000bbpp
iinnccrreeaassee
$$’’000000
(78)
220000bbpp
ddeeccrreeaassee
$$’’000000
78
22002211
110000bbpp
iinnccrreeaassee
$$’’000000
(621)
110000bbpp
ddeeccrreeaassee
$$’’000000
621
Variable rate instruments
CCoommmmooddiittyy pprriiccee rriisskk
The Group’s exposure to commodity price risk is from the fluctuations in the prevailing market prices of gold produced
from its operating mine. The Group manages its exposure to movements in the gold price through the use of gold
forward contracts (refer Note 2) and its sold gold call option contract (refer Note 21).
The gold forward sale contracts do not meet the criteria of financial instruments for accounting purposes on the basis
that they meet the normal purchase/sale exemption because physical gold will be delivered into the contract and
accordingly no sensitivity analysis is provided for these contracts as they are outside the scope of AASB 9 Financial
Instruments.
The following table reflects the impact on equity and profit or loss relating to the sold gold call option contract of a $100
change in the average forward price per ounce which was $2,951 per ounce at 30 June 2022 (2021: $2,684).
22002222
$$110000
iinnccrreeaassee
$$’’000000
(391)
$$110000
ddeeccrreeaassee
$$’’000000
391
22002211
$$110000
iinnccrreeaassee
$$’’000000
(264)
$$110000
ddeeccrreeaassee
$$’’000000
264
Sold gold call option contract
CCrreeddiitt rriisskk
Credit risk is the risk of financial loss to the Group if the counterparty to a financial asset fails to meet its contractual
obligation.
Credit risk is managed to ensure that customers are of sound credit worthiness and monitoring is used to recover aged
debts and assess receivables for impairment. Credit terms are generally 30 days from the invoice date.
Risk is also minimized by investing surplus funds in financial institutions with a high credit rating.
LLiiqquuiiddiittyy rriisskk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities.
The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate facilities are maintained.
FFiinnaanncciiaall lliiaabbiilliittyy mmaattuurriittyy aannaallyyssiiss
22002222
Trade and other payables
Lease liabilities
Borrowings
$$’’000000
27,407
45,435
65,386
CCaarrrryyiinngg
aammoouunntt
lliiaabbiilliittiieess
TToottaall
ccoonnttrraaccttuuaall
ccaasshh fflloowwss
<<66
mmoonntthhss
66--1122
mmoonntthhss
$$’’000000
$$’’000000
$$’’000000
27,407
27,407
58,732
5,400
72,313
16,541
-
5,478
1,155
66,,663333
113388,,222288
115588,,445522
4499,,334488
11--22
yyeeaarrss
$$’’000000
-
22--55
yyeeaarrss
$$’’000000
-
>>55 yyeeaarrss
$$’’000000
-
10,819
21,392
15,643
2,309
52,309
-
1133,,112288
7733,,770011
1155,,664433
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
60
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CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
CCaarrrryyiinngg
aammoouunntt
lliiaabbiilliittiieess
TToottaall
ccoonnttrraaccttuuaall
ccaasshh fflloowwss
<<66
mmoonntthhss
66--1122
mmoonntthhss
22002211
Trade and other payables
Lease liabilities
Borrowings
$$’’000000
18,945
51,055
70,000
$$’’000000
$$’’000000
$$’’000000
18,945
18,945
-
11--22
yyeeaarrss
$$’’000000
-
22--55
yyeeaarrss
$$’’000000
-
>>55 yyeeaarrss
$$’’000000
-
65,907
5,368
5,319
10,113
27,673
17,434
72,724
14,975
18,727
24,805
14,217
-
114400,,000000
115577,,557766
3399,,228888
2244,,004466
3344,,991188
4411,,889900
1177,,443344
FFiinnaanncciiaall iinnssttrruummeennttss mmeeaassuurreedd aatt ffaaiirr vvaalluuee
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified
using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.
The fair value hierarchy consists of the following levels:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1
Level 2
Level 3
AAsssseettss
22002222
$$’’000000
1,348
2,500
-
33,,884488
22002211
$$’’000000
1,688
2,500
-
44,,118888
LLiiaabbiilliittiieess
22002222
$$’’000000
-
(11,540)
-
((1111,,554400))
22002211
$$’’000000
-
(7,082)
-
((77,,008822))
Included within Level 1 of the hierarchy are the BlackEarth Minerals NL and DiscovEx Resources Limited shares listed on
the Australian Securities Exchange. The fair value of these financial assets have been based on the closing quoted bid
prices at the end of the reporting period, excluding transaction costs.
Included within Level 2 of the hierarchy is a freehold property asset located in Antanarirvo, Madagascar that is held for
sale and the sold gold call option. The fair value of the freehold property asset is based on a valuation that was completed
in June 2020. The fair value of the gold forward liability was based on valuation techniques that employ the use of market
observable inputs. The most frequently applied valuation techniques include forward pricing and swap models using
present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign
exchange spot and forward rates, and spot and forward rate curves of the underlying commodity. The changes in
counterparty credit risk had no material effect on the gold forward liability recognised at fair value.
No transfers between the levels of the fair value hierarchy occurred during the current or previous reporting period. The
Directors consider that the carrying value of all financial assets and financial liabilities are recognised in the consolidated
financial statements approximate to their fair value.
2277.. CCAAPPIITTAALL MMAANNAAGGEEMMEENNTT
RRiisskk mmaannaaggeemmeenntt
The Board controls the capital of the Group in order to ensure that the Group can fund its operations and continue as a
going concern so that they can maximise shareholder value and benefits to other stakeholders.
The Board effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of debt
levels, distributions to shareholders and share issues.
Total capital is equity, as shown in the statement of financial position. The Group is not subject to any externally imposed
capital requirements.
There have been no changes in the strategy adopted by the Board to control the capital of the Group since the prior year
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 61
61
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
OOTTHHEERR DDIISSCCLLOOSSUURREESS
This section provides information on items which require disclosure to comply with Australian Standards and other
regulatory requirements
2288.. MMTT GGIIBBSSOONN GGOOLLDD PPRROOJJEECCTT AACCQQUUIISSIITTIIOONN
In July 2021 the Company acquired a 100% interest in the Mt Gibson Gold Project (‘MGGP’) located 280 kilometres
northeast of Perth in the Mid-West region of Western Australia. Refer ASX announcement dated 28 July 2021 for more
information regarding the acquisition.
The Company acquired the project via a combination of cash of $25.6 million and $14.0 million in shares in the Company
plus transaction costs ($2.2 million) and the assumption of rehabilitation obligations relating to the project. Further details
of the transaction are set out below:
PPuurrcchhaassee ccoonnssiiddeerraattiioonn
Purchase cost (including transaction costs)
$$’’000000
41,781
The Group has determined that the transaction does not constitute a business combination in accordance with AASB 3
Business Combinations. The acquisition of the net assets has therefore been accounted for as an asset acquisition. When
an asset acquisition does not constitute a business combination, the assets and liabilities are allocated a carrying amount
based on their relative fair values in an asset purchase transaction.
The value of the assets acquired and liabilities assumed has been allocated on a fair value basis. Details of the purchase
consideration and the net assets acquired as are follows:
NNeett aasssseettss aaccqquuiirreedd
Exploration and evaluation assets (refer note 13)
Rehabilitation liabilities (refer note 20)
Total purchase consideration
2299.. SSHHAARREE BBAASSEEDD PPAAYYMMEENNTTSS
AAccccoouunnttiinngg ppoolliiccyy
$$’’000000
51,560
(9,779)
4411,,778811
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled
transactions’).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at
which they are granted. The fair value of options is determined by an internal valuation using a Black-Scholes option
pricing model. The fair value of performance rights determined by consideration of the Company’s share price at the
grant date and consideration of the specific market vesting conditions applicable to the performance rights.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled
to the award (“Vesting Date”).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects
-
-
the extent to which the vesting period has expired and
the number of options that, in the opinion of the Directors of the Company, will ultimately vest.
This opinion is formed based on the best available information at reporting date. No adjustment is made for the likelihood
of market performance conditions being met as the effect of these conditions is included in the determination of fair
value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled
award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as
if they were a modification of the original award.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
62
Page | 62
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
PPllaannss
The Company has an Incentive option plan and a Performance rights plan (collectively “the Plans”) which were last
approved by shareholders on 10 November 2019 and 20 November 2020 respectively.
The objectives of the Plans are to assist with the recruitment, reward, retention and motivation of eligible employees of
the Group. In accordance with the Plans the Board, on advice from the Remuneration, Nomination and Diversity
Committee may issue eligible employees with options or performance rights to acquire shares in the future at a
determined fixed exercise price on grant of the options or performance rights.
The vesting of the options and performance rights are subject to service conditions and performance criteria as outlined
below.
Total expenses arising from share-based payment transactions recognised during the period were as follows:
RReeccooggnniisseedd sshhaarree--bbaasseedd ppaayymmeennttss eexxppeennssee
Employee options share-based payments expense
Performance rights expense
Total expense arising from share-based payment transactions
OOppttiioonnss
22002222
$$’’000000
-
4,893
44,,889933
22002211
$$’’000000
1
3,276
33,,227777
The following table outlines the number and weighted average exercise price (“WAEP”) of, and movements in, options
during the year:
22002222
22002211
Outstanding as at 1 July
Granted during the year
NNuummbbeerr
10,000,000
-
Exercised during the year
(10,000,000)
Outstanding at end of the year
Exercisable as at 30 June
-
-
WWAAEEPP
$0.60
-
$0.60
NNuummbbeerr
16,218,006
-
(6,218,006)
10,000,000
10,000,000
WWAAEEPP
$0.65
-
$0.73
$0.60
$0.60
The weighted average share price at the date the options were exercised during the year ended 30 June 2022 is $2.25
(30 June 2021: $1.73).
All options refer to options over ordinary shares of Capricorn Metals Ltd which are exercisable on a one for one basis.
The fair value at grant date of the options has been estimated using the Black-Scholes option pricing formula, taking into
account the terms and conditions upon which the options were granted. The options vested immediately upon issue and
the contractual life of each option was 3 years. The ability to exercise the options is conditional upon the employee
remaining with the Group throughout the vesting period.
There were no new grants of employee options during the years ended 30 June 2022 and 30 June 2021.
PPeerrffoorrmmaannccee rriigghhttss
The following table outlines the number and movements in Performance rights during the year:
Outstanding as at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at end of the year
Exercisable as at 30 June
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002222
NNuummbbeerr ooff
RRiigghhttss
7,175,000
1,840,818
(300,000)
(3,275,000)
22002211
NNuummbbeerr ooff
RRiigghhttss
6,450,000
725,000
-
-
55,,444400,,881188
77,,117755,,000000
--
--
Page | 63
63
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
FFiinnaanncciiaall yyeeaarr 22002200
In December 2019, 4,000,000 Performance rights were granted to KMP, Mr Kim Massey and Mr Paul Thomas under the
Group’s Performance Rights Plan. 50% of the rights will vest on 17 September 2021 and the remaining rights will vest on
17 September 2022.
In March 2020, 2,450,000 Performance rights were granted to employees of the Company under the Group’s
Performance Rights Plan. 50% of rights will vest on 1 February 2022 and the remaining rights will vest on 1 February 2023.
The performance condition for the FY2020 Performance rights was continued employment with the Company for the
performance period.
The fair value of the Performance rights granted during Financial year 2020 was $7,047,500. The fair value at the grant
date was estimated using a Black Scholes option pricing model.
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
IItteemm
Grant date
Value at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period (yrs)
Test date
Remaining performance period (yrs)
Weighted average fair value
IIssssuuee 11
17 Dec 2019
$1.18
nil
0%
0.77%
126%
2.75
17/09/22
0.22
1.18
IIssssuuee 22
27 Mar 2020
$0.95
nil
0%
0.38%
123%
2.85
01/02/23
0.59
0.95
In October 2021, 2,000,000 Dec 2019 performance rights were exercised and in February 2022, 1,275,000 Mar 2020
performance rights were exercised.
In February 2022, 200,000 of the Mar 2020 performance rights were forfeited due to the resignation of an employee in
accordance with the Performance rights plan.
FFiinnaanncciiaall yyeeaarr 22002211
In October 2020, 325,000 Performance rights were granted to employees of the Company under the Group’s
Performance Rights Plan. 50% of rights will vest on 30 September 2022 and the remaining rights will vest on 30 September
2023.
In June 2021, 400,000 Performance rights were granted to employees of the Company under the Group’s Performance
Rights Plan. 200,000 rights will vest in equal proportions on 18/1/2023 and 18/1/2024 and the remaining 200,000
Performance will vest in equal proportions on 29 March 2023 and 29 March 2024.
The performance condition for the FY2021 Performance rights was continued employment with the Company for the
performance period.
The fair value of the Performance rights granted during Financial year 2021 was $1,351,250. The fair value at the grant
date was estimated using a Black Scholes option pricing model.
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
IItteemm
Grant date
Value at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period (yrs)
Test date
Remaining performance period (yrs)
Weighted average fair value
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
64
IIssssuuee 11
IIssssuuee 22
IIssssuuee 33
19 Oct 2020
$1.77
nil
0%
0.13% - 0.14%
95% - 123%
1.95 - 2.95
30/09/22 & 30/09/23
0.25 - 1.25
$1.77
16 Jun 2021
$1.94
nil
0%
0.04% - 0.14%
91% - 118%
1.59 - 2.59
18/01/23 & 18/01/24
0.55 - 1.55
$1.94
16 Jun 2021
$1.94
nil
0%
0.04% - 0.14%
91% - 118%
1.59 - 2.59
29/03/23 & 29/03/24
0.55 - 1.55
$1.94
Page | 64
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
In March and April 2022 100,000 Oct 2020 performance rights were forfeited due to the resignations of two employees
in accordance with the Performance rights plan.
FFiinnaanncciiaall yyeeaarr 22002222
In October 2021, 279,818 performance rights were granted to KMP, Mr Kim Massey and Mr Paul Thomas under the
Group’s Performance Rights Plan. 50% of the rights will vest on 30 June 2023 and the remaining rights will vest on 30
June 2024.
In November 2021, 240,000 performance rights were issued to KMP, Mr Clark under the Group’s Performance Rights
Plan. 50% of the rights will vest on 4 October 2022 and the remaining rights will vest on 4 October 2023.
In December 2021:
-
-
-
249,000 performance rights were issued to employees under the Group’s Performance Rights Plan. A third of the
rights will vest on 10 December 2022, another third on 10 December 2023 and the remaining rights will vest on 10
December 2024;
In December 2021, 1,032,000 performance rights were issued to employees under the Group’s Performance Rights
Plan. 50% of the rights will vest on 10 December 2023 and the remaining rights will vest on 10 December 2024; and
In December 2021 40,000 performance rights were issued to employees under the Group’s Performance Rights
Plan. All of the rights will vest on 10 December 2024.
The performance conditions for Issues 1 & 2 and 5 of the FY2022 Performance rights was the Company’s relative total
shareholder return (“TSR”) measured against the TSR’s of 12 comparator mining companies and continued employment
with the Company for the performance period.
The performance condition for Issues 3,4 and 5 of the FY2022 Performance rights was continued employment with the
Company for the performance period.
The fair value of the Performance rights granted during Financial year 2022 was $5,112,568.
The fair value at the grant date was estimated using a Monte Carlo simulation (Issue 1 & 2), and a Black Scholes option
pricing model (Issue 3,4 & 5).
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
IIssssuuee 11
4 Oct 2021
IIssssuuee 22
24 Nov 2021
IIssssuuee 33
IIssssuuee 44
IIssssuuee 55
10 Dec 2021
10 Dec 2021
10 Dec 2021
$2.18
nil
0%
0.05% - 0.27%
50%
$2.95
nil
0%
0.54%
50%
$3.10
nil
0%
1.32%
$3.10
nil
0%
1.32%
72% - 106%
72% - 106%
1.00 – 3.00
10/12/22 &
10/12/24
0.45 – 2.45
$3.10
2.00 – 3.00
10/12/23 &
10/12/24
1.45 - 2.45
$3.10
$3.10
nil
0%
1.32%
106%
3.00
10/12/24
2.45
$3.10
Performance period (yrs)
2.00 – 3.00
1.00 – 2.00
Test date
Remaining performance period (yrs)
Weighted average fair value
30/6/23 &
30/06/24
1.00 - 2.00
1.83
4/10/22 &
4/10/23
0.26 – 1.26
2.11
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– SShhaarree bbaasseedd ppaayymmeennttss
IItteemm
Grant date
Value at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted.
The fair value of options is determined by an internal valuation using a Black-Scholes option pricing model, using the
assumptions detailed in Note 24.
The fair value of performance rights is determined by the share price at the date of valuation and consideration of the
probability of the market vesting condition being met.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 65
65
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
3300.. RREELLAATTEEDD PPAARRTTYY DDIISSCCLLOOSSUURREESS
KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell RReemmuunneerraattiioonn
KMP remuneration has been included in the Remuneration Report section of the Directors Report for current KMP only.
The total remuneration paid to current and former KMP of the Group is as follows:
Short term benefits
Other service fees
Non-cash benefits
Post-employment benefits
Annual leave
Share based payments
Termination payments
UUllttiimmaattee PPaarreenntt
22002222
$$
22002211
$$
2,037,500
1,402,956
585,000
28,041
119,587
155,038
1,750,493
-
44,,667755,,665599
26,190
25,601
119,191
42,611
2,319,250
100,000
44,,003355,,779999
Capricorn Metals Ltd is the ultimate parent entity of the Group.
CCoonnttrroolllleedd EEnnttiittiieess
The consolidated financial statements include the financial statements of the Parent and the subsidiaries set out in the
following table:
OOwwnneerrsshhiipp ((%%))
SSuubbssiiddiiaarriieess
Mining Services SARL
St Denis Holdings SARL
MGY Mauritius Ltd
Malagasy Graphite Holdings Ltd
Greenmount Resources Pty Ltd
44..
55..
Crimson Metals Pty Ltd
Metrovex Pty Ltd
CCoouunnttrryy
PPrriinncciippaall aaccttiivviittyy
Madagascar
Exploration Services
Madagascar
Commercial Property
Mauritius
Investment Holding
Australia
Australia
Australia
Australia
Investment Holding
Production
Exploration
Exploration
22002222
100%
100%
100%
100%
100%
100%
100%
22002211
100%
100%
100%
100%
100%
-
-
In June 2022 former subsidiaries Energex SARL and Mazoto Minerals SARL were deregistered and therefore have not
been included in the consolidated financial statements as at 30 June 2022.
The subsidiaries noted above are all controlled entities and are dependent on the parent entity for financial support.
TTrraannssaaccttiioonnss wwiitthh RReellaatteedd PPaarrttiieess
As at 30 June 2022, the net loans from the Parent to its subsidiaries totals $131,882,000 (2021: $142,599,000). This is
made up of loans to subsidiaries of $139,620,000 (2021: $150,385,000) with a provision for impairment of $7,738,000
(2021: $7,786,000).
SSuubbssiiddiiaarriieess
Mining Services SARL
MGY Mauritius Ltd
Malagasy Graphite Holdings Ltd
Greenmount Resources Pty Ltd
Crimson Metals Pty Ltd
Metrovex Pty Ltd
There are no other transactions between related parties within the Group.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
66
LLooaann
$$’’000000
452
2,971
6,815
106,019
10,379
12,984
113399,,662200
PPrroovviissiioonn ffoorr
iimmppaaiirrmmeenntt
CCaarrrryyiinngg vvaalluuee
$$’’000000
(452)
(471)
(6,815)
-
-
-
((77,,773388))
$$’’000000
-
2,500
-
106,019
10,379
12,984
113311,,888822
Page | 66
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
3311.. PPAARREENNTT EENNTTIITTYY DDIISSCCLLOOSSUURREESS
The following information has been extracted from the books and records of the parent and has been prepared in
accordance with Australian Accounting Standards.
AAsssseettss
Current assets
Non-current assets
Total Assets
LLiiaabbiilliittiieess
Current liabilities
Non-current liabilities
Total Liabilities
SShhaarreehhoollddeerrss’’ EEqquuiittyy
Issued capital
Reserves
Accumulated losses
Total Shareholders’ Equity
SSttaatteemmeenntt ooff ccoommpprreehheennssiivvee iinnccoommee
Net loss attributable to members of the parent entity
Other comprehensive income for the period
22002222
$$’’000000
4,385
167,203
171,588
3,176
904
4,080
202,997
7,149
(42,638)
116677,,550088
(13,388)
-
Total comprehensive loss for the year attributable to members of the parent entity
((1133,,338888))
22002211
$$’’000000
7,402
146,932
154,334
643
55
698
180,629
11,500
(38,493)
115533,,663366
(7,119)
-
((77,,111199))
The Parent entity has not entered into any contractual commitments for the acquisition of property plant and equipment
at the date of this report.
3322.. CCOOMMMMIITTTTMMEENNTTSS
The Group has physical gold delivery commitments and exploration expenditure commitments which are disclosed in
notes 2 and 13 respectively.
3333.. CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
As at 30 June 2022 Capricorn Metals Ltd has bank guarantees totalling $478,000 (2021: $324,000), refer to Note 7.
As at 30 June 2022 the Group has utilised $10 million (2021: $18 million) of the $20 million Bank Guarantee Facility with
Macquarie under the existing Project Loan Facility in relation to the lateral pipeline that links Goldfields Gas Pipeline to
the KGP.
3344.. AAUUDDIITTOORRSS RREEMMUUNNEERRAATTIIOONN
Amount payable to KPMG Australia
- Auditing or reviewing the financial report
22002222
$$
22002211
$$
113300,,000000
4455,,000000
Amounts payable to other audit firms for the audit and review of the financial reports of subsidiary companies was $1,688
(2021: $1,699).
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 67
67
CAPRICORN METALS LTD - Annual Report
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002222
3355.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
There were no material events arising subsequent to 30 June 2021, to the date of this report which may significantly
affect the operations of the Group, the results of those operations and the state of affairs of the Group in the future,
other than:
LLooaann rreeffiinnaanncciinngg && rroolllliinngg ooff ggoolldd ccoonnttrraaccttss
In July 2022 the Company arranged with Macquarie Bank to convert the project loan facility to a general-purpose
corporate loan facility with a single bullet repayment in June 2025. Capricorn can elect to repay (part or full) the loan at
any time without penalty. In addition, 30,000 ounces of gold contracts with an average delivery price of $2,247/oz have
been rolled from Jul 22 – Dec 22 to Dec 25 – Jun 26 to align with the maturity date of the new corporate facility.
SShhaarree iissssuuee
On 19 September 2022 the Company announced the issue of 2,000,000 shares as a result of performance rights being
exercised by the Chief Executive Officer Mr Massey and the Chief Operating Officer Mr Thomas, in equal proportions, in
accordance with their employment contracts.
3366.. NNEEWW AACCCCOOUUNNTTIINNGG SSTTAANNDDAARRDDSS AANNDD IINNTTEERRPPRREETTAATTIIOONNSS IISSSSUUEEDD BBUUTT NNOOTT YYEETT EEFFFFEECCTTIIVVEE
The following standards, amendments to standards and interpretations have been identified as those which may impact
the entity in the period of initial application. They are available for early adoption at 30 June 2022 but have not been
applied in preparing this financial report. Except where noted, the Group has evaluated the impact of the new standards
and interpretations listed below and determined that the changes are not likely to have a material impact on its financial
statements.
AAAASSBB 22002200--33 AAmmeennddmmeennttss ttoo AAuussttrraalliiaa AAccccoouunnttiinngg SSttaannddaarrddss –– AAnnnnuuaall IImmpprroovveemmeennttss 22001188--22002200 && OOtthheerr AAmmeennddmmeennttss
The subject of the principal amendments to the Standards are set out below:
AAAASSBB 11 FFiirrsstt--ttiimmee AAddooppttiioonn ooff AAuussttrraalliiaann AAccccoouunnttiinngg SSttaannddaarrddss
The amendment allows a subsidiary that becomes a first-time adopter after its parent to elect to measure cumulative
translation differences for all foreign operations at the carrying amount that would be included in the parent’s
consolidated financial statements, based on the parent’s date of transition, if no adjustment were made for consolidation
procedures and for the effects of the business combination in which the parent acquired the subsidiary.
AAAASSBB 99 FFiinnaanncciiaall IInnssttrruummeennttss
The amendment clarifies that an entity includes only fees paid or received between the borrower and the lender and fees
paid or received by either the borrower or the lender on the other’s behalf when assessing whether the terms of a new
or modified financial liability are substantially different from the terms of the original financial liability.
AAAASSBB 113377 PPrroovviissiioonnss,, CCoonnttiinnggeenntt LLiiaabbiilliittiieess aanndd CCoonnttiinnggeenntt AAsssseettss
The amendment specifies the costs an entity includes when assessing whether a contract will be loss-making consists of
the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.
Application date of Standard: 1 January 2022 Application date for Group: 1 July 2022
AAAASSBB 22002200--11 AAmmeennddmmeennttss ttoo AAuussttrraalliiaann AAccccoouunnttiinngg SSttaannddaarrddss –– CCllaassssiiffiiccaattiioonn ooff LLiiaabbiilliittiieess aass CCuurrrreenntt oorr NNoonn--ccuurrrreenntt
The amendments require a liability be classified as current when companies do not have a substantive right to defer
settlement at the end of the reporting period. AASB 2020-6 defers the mandatory effective date of amendments that
were originally made in AASB 2020-1 so the amendments are required to be applied for annual reporting periods
beginning on or after 1 January 2023 instead of 1 January 2022.
Application date of Standard: 1 January 2023 Application date for Group: 1 July 2023
AAAASSBB 22002211--22 AAmmeennddmmeennttss ttoo AAuussttrraalliiaann AAccccoouunnttiinngg SSttaannddaarrddss –– DDiisscclloossuurree ooff AAccccoouunnttiinngg PPoolliicciieess aanndd DDeeffiinniittiioonn ooff
AAccccoouunnttiinngg EEssttiimmaatteess
The amendments provide a definition of and clarifications on accounting estimates and clarify the concept of materiality
in the context of disclosure of accounting policies.
Application date of Standard: 1 January 2023 Application date for Group: 1 July 2023
AAAASSBB 22002211--55 AAmmeennddmmeennttss ttoo AAuussttrraalliiaann AAccccoouunnttiinngg SSttaannddaarrddss –– DDeeffeerrrreedd TTaaxx rreellaatteedd ttoo AAsssseettss aanndd LLiiaabbiilliittiieess aarriissiinngg
ffrroomm aa ssiinnggllee ttrraannssaaccttiioonn
The amendments clarify the accounting for deferred tax on transactions that, at the time of the transaction, give rise to
equal taxable and deductible temporary differences.
Application date of Standard: 1 January 2023 Application date for Group: 1 July 2023
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
68
Page | 68
CAPRICORN METALS LTD - Annual Report
DDiirreeccttoorrss’’ ddeeccllaarraattiioonn
1.
In the opinion of the Directors of Capricorn Metals Ltd:
(a) The consolidated financial statements, notes and additional disclosures included in the directors’ report
designated as audited of the Company and Group, are in accordance with the Corporations Act 2001 and:
(i)
comply with Australian Accounting Standards and the Corporations Regulations 2001; and
(ii) give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year
ended on that date of the Company and Group.
(b) There are reasonable grounds to believe that the Company and Group will be able to pay its debts as and when
they become due and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Financial Controller for the financial year ended 30 June 2022.
The Directors draw attention to the notes to the consolidated financial statements, which include a statement of
compliance with International Financial Reporting Standards.
2.
3.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Mr Mark Clark
Executive Chairman
Perth, Western Australia
28 September 2022
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 69
69
CAPRICORN METALS LTD - Annual Report
Independent Auditor’s Report
To the shareholders of Capricorn Metals Ltd
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Capricorn Metals Ltd (the Company).
In our opinion, the accompanying Financial Report
of the Company is in accordance with the
Corporations Act 2001, including:
• giving a true and fair view of the Group’s
financial position as at 30 June 2022 and of
its financial performance for the year ended
on that date; and
The Financial Report comprises:
• Consolidated statement of financial position
as at 30 June 2022
• Consolidated statement of profit or loss and
other comprehensive income, Consolidated
statement of changes in equity, and
Consolidated statement of cash flows for the
year then ended
• Notes including a summary of significant
•
complying with Australian Accounting
Standards and the Corporations Regulations
2001.
accounting policies
• Directors’ Declaration.
The Group consists of the Company and the
entities it controlled at the year-end or from time
to time during the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
70
CAPRICORN METALS LTD - Annual Report
Key Audit Matters
The Key Audit Matters we identified are:
• Acquisition of Mt Gibson Gold Project; and
• Recognition of taxes.
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.
Acquisition of Mt Gibson Gold Project
Refer to Note 28 Mt Gibson Gold Project Acquisition to the Financial Report
The key audit matter
How the matter was addressed in our audit
In July 2021, the Group acquired 100% interest in
the Mt Gibson Gold Project (“MGGP”). The total
consideration, consisting of cash and shares, for
the acquisition of MGGP was $41.8m and
resulted in the recognition of exploration and
evaluation assets and rehabilitation provision.
This transaction is considered to be a key audit
matter due to the:
• Size of the acquisition having a significant
impact on the Group’s financial statements.
• Group’s judgement and complexity relating to
the determination of asset acquisition
accounting, and allocation made to acquired
assets and liabilities.
• The acquisition included obligations for future
MGGP site remediation. The recognition of
the fair value of this rehabilitation provision is
inherently complex involving the estimation of
future rehabilitation and restoration costs and
related judgements.
Our procedures included:
• We evaluated the asset acquisition
accounting by the Group against the
requirements of the accounting standards.
• We read the underlying transaction
agreements to understand the terms of the
acquisition and nature of the assets and
liabilities acquired.
• We assessed the accuracy of the calculation
and measurement of consideration paid to
acquire MGGP based on the underlying
transaction agreements and the Group’s bank
statements.
• We assessed the recognition of the acquired
exploration and evaluation assets against the
requirements of the accounting standards.
• We obtained the Group’s estimation of the
rehabilitation provision acquired and critically
evaluated the liability by comparing the
nature, timing and the quantum of the costs
within the provision to the Group’s internal
and external underlying documentation.
• We assessed the adequacy of disclosures in
the financial report using our understanding
obtained from our testing and against the
requirements of the accounting standards.
71
CAPRICORN METALS LTD - Annual Report
Recognition of deferred tax
Refer to Notes 5 and 22 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group recognised an income tax expense of
$21.4 million during the year ended 30 June 2022.
As at 30 June 2022, a net deferred tax liability
totaling $20.9 million has been recognised. This
deferred tax liability is net of deferred tax assets
relating to past tax losses of $29.1 million.
The recognition of taxes was a key audit matter
due to:
the significance of these tax balances
recognised by the Group;
Working with our specialists, our
procedures included:
• We examined the documentation prepared
by the Group supporting the availability of tax
losses that were recognised in accordance
with Australian tax law.
• We assessed the factors that led to the
Group incurring tax losses and challenged
the Group’s assessment of future taxable
profits.
the judgment required to assess that the
deferred tax assets are expected to be
utilised in the same period as the expected
reversal of the deferred tax liabilities; and
• We examined the Group’s tax calculations for
current and income tax expense and deferred
tax balances and compared to internal and
external documentation.
•
•
•
the risk of the Group applying the
requirements of the accounting standards and
Australian tax law to incorrectly recognise
deferred tax assets for past tax losses.
We involved tax specialists to supplement our
senior team members in assessing this key audit
matter.
• Understanding the anticipated timing of
future taxable profits and considered the
consistency those timeframes with the
expected reversal of the deferred tax
balances. We compared this to our
knowledge of the business, its plans and
Australian tax law and accounting
requirements.
• We assessed the Group’s disclosures in the
financial report using the results from our
testing and against the requirements of the
accounting standards.
Other Information
Other Information is financial and non-financial information in Capricorn Metals Ltd’s annual reporting
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
The Other Information we obtained prior to the date of this Auditor’s Report was the Director’s Report.
The Chairman’s letter to shareholders, Company Highlights, Reserves & Resources report and ASX
additional information are expected to be made available to us after the date of the Auditor’s Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
and will not express an audit opinion or any form of assurance conclusion thereon, with the exception
of the Remuneration Report and our related assurance opinion.
72
CAPRICORN METALS LTD - Annual Report
In connection with our audit of the Financial Report, our responsibility is to read the Other Information.
In doing so, we consider whether the Other Information is materially inconsistent with the Financial
Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
implementing necessary internal control to enable the preparation of a Financial Report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error
• assessing the Group and Company’s ability to continue as a going concern and whether the use
of the going concern basis of accounting is appropriate. This includes disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group and Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our
Auditor’s Report.
73
CAPRICORN METALS LTD - Annual Report
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report of Capricorn
Metals Ltd for the year ended 30 June 2022,
complies with Section 300A of the Corporations Act
2001.
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included
in pages 13 to 23 of the Directors’ report for the year
ended 30 June 2022.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
KPMG
R Gambitta
Partner
Perth
28 September 2022
74
CAPRICORN METALS LTD - Annual Report
AASSXX aaddddiittiioonnaall iinnffoorrmmaattiioonn
As at 11 October 2022 the following information applied:
11..
aa))
SSeeccuurriittiieess
FFuullllyy ppaaiidd oorrddiinnaarryy sshhaarreess
The voting rights attached to the ordinary shares are governed by the Constitution.
On a show of hands, every person present, who is a Member or representative of a Member shall have one vote and on
a poll, every Member present in person or by proxy or by attorney or duly authorised representative shall have one vote
for each share held. None of the options have any voting rights.
SSiizzee ooff hhoollddiinngg
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TToottaall
NNuummbbeerr ooff
SShhaarreehhoollddeerrss
NNuummbbeerr ooff
SShhaarreess
PPeerrcceennttaaggee
%%
944
949
361
661
172
33,,008877
447,541
2,613,046
2,812,464
22,044,593
346,007,542
337733,,992255,,118866
0.12
0.70
0.75
5.90
92.53
110000..0000
There are 178 Shareholders with less than a marketable parcel at a price of $3.24, totalling 7,853 shares.
bb))
TToopp 2200 sshhaarreehhoollddeerrss
NNaammee
HSBC Custody Nominees (Australia) Limited
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
Samoz Pty Ltd
National Nominees Limited
BNP Paribas Noms Pty Ltd
Rollason Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mutual Investments Pty Ltd
Piama Pty Ltd
Mr Glyn Evans & Mrs Thi Thu Van Evans
Macquarie Bank Limited
Nedlands Nominees Pty Ltd
Liberty Management Pty Ltd
Topaz Holdings Pty Ltd
Avenger Projewcts Ltd
Portbarb Pty Ltd
Cenquest Pty Ltd
Mr Kim Andrew Massey
Liberty Management Pty Ltd
Third Reef Pty Ltd
TToopp 2200 sshhaarreehhoollddeerrss
TToottaall iissssuueedd ccaappiittaall
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
NNuummbbeerr ooff FFuullllyy
PPaaiidd OOrrddiinnaarryy
SShhaarreess HHeelldd
93,846,306
46,508,253
25,303,511
21,846,154
18,202,556
13,133,652
9,148,299
8,860,147
7,283,360
6,351,529
5,596,049
5,000,000
4,691,705
4,615,385
3,611,539
2,840,000
2,750,000
2,525,000
2,153,847
2,000,000
2,000,000
PPeerrcceennttaaggee
%%
25.10
12.44
6.77
5.84
4.87
3.51
2.45
2.37
1.95
1.70
1.50
1.34
1.25
1.23
0.97
0.76
0.74
0.68
0.58
0.53
0.53
228888,,226677,,229922
337733,,992255,,118866
7777..0099
110000..0000
Page | 75
75
CAPRICORN METALS LTD - Annual Report
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
cc))
UUnnlliisstteedd ooppttiioonnss
The Company has no unlisted options on issue
dd))
UUnnlliisstteedd ppeerrffoorrmmaannccee rriigghhttss
PPeerrffoorrmmaannccee rriigghhttss iissssuueedd uunnddeerr eemmppllooyyeeee iinncceennttiivvee sscchheemmee
Unvested 2020 Performance rights (Test date: 30 Sep 2022)
Unvested 2020 Performance rights (Test date: 1 Feb 2023)
Unvested 2020 Performance rights (Test date: 30 Sep 2023)
Unvested 2021 Performance rights (Test date: 18 Jan 2023)
Unvested 2021 Performance rights (Test date: 18 Jan 2024)
Unvested 2021 Performance rights (Test date: 29 Mar 2023)
Unvested 2021 Performance rights (Test date: 29 Mar 2024)
Unvested 2021 Performance rights (Test date: 4 Oct 2022)
Unvested 2021 Performance rights (Test date: 4 Oct 2023)
Unvested 2021 Performance rights (Test date: 10 Dec 2022)
Unvested 2021 Performance rights (Test date: 10 Dec 2023)
Unvested 2021 Performance rights (Test date: 10 Dec 2024)
Unvested 2021 Performance rights (Test date: 30 Jun 2023)
Unvested 2021 Performance rights (Test date: 30 Jun 2024)
TToottaall
NNuummbbeerr ooff
OOppttiioonn HHoollddeerrss
NNuummbbeerr ooff
OOppttiioonnss
2
9
2
1
1
1
1
1
1
6
31
33
2
2
9933
112,500
975,000
112,500
100,000
100,000
100,000
100,000
120,000
120,000
83,000
599,000
639,000
139,909
139,909
33,,444400,,881188
Performance rights do not carry a right to vote. Voting rights will be attached to the unissued shares when the
performance rights have been exercised.
22..
SSuubbssttaannttiiaall sshhaarreehhoollddeerrss
The names of the substantial shareholders listed in the Company’s share register as at 11 October 2022 were:
SShhaarreehhoollddeerr
Van Eck Associates Corporation
Paradice Investment Management Pty Ltd
TToottaall
33..
OOnn mmaarrkkeett bbuuyy--bbaacckk
There is currently no on-market buy-back in place.
44..
CCoorrppoorraattee ggoovveerrnnaannccee
The Company’s corporate governance statement can be found at the following URL:
http://capmetals.com.au/corporate/corporate-governance/
NNuummbbeerr ooff
SShhaarreess
PPeerrcceennttaaggee
%%
38,873,015
28,956,451
6677,,882299,,446666
10.40
7.74
1188..1144
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
76
Page | 76
CAPRICORN METALS LTD - Annual Report AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
55.. MMiinneerraall RReessoouurrcceess && OOrree RReesseerrvveess
GGrroouupp MMiinneerraall RReessoouurrcceess
The JORC compliant Group Mineral Resources (inclusive of Ore Reserves) as at 30 June 2022 are estimated at 179.0
million tonnes at 0.8g/t Au for 4.37 million ounces of gold compared with the estimate at 30 June 2021 of 166.5 million
tonnes at 0.8g/t Au for 4.23 million ounces of gold.
The re-estimation of Group Mineral Resources resulted in an 8% increase in tonnes and 3% increase in ounces.
The increase in the Group Mineral Resources is primarily the result of the inclusion of recent drilling at the Karlawinda
Gold Project (‘KGP’), a gold price of $2,200/ounce for KGP (2021: $2,000/ounce) and a gold price of $2,000/ounce for
Mt Gibson Gold Project (‘MGGP’) (2021: $2,000/ounce).
s
e
c
n
u
O
n
o
i
l
l
i
M
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
4.23
-
30-Jun-21
Group Mineral Resources
0.29
-
-
-
0.14
Depletion
Model Update
New Deposits
4.37
-
30-Jun-22
Mineral Resources are reported inclusive of Ore Reserves and include all exploration and resource definition drilling
information, where practicable, up to 30 June 2022 and have been depleted for mining to 30 June 2022.
Mineral Resources are constrained by optimised open pit shells developed with operating costs and long-term gold
price assumptions of A$2,200 per ounce for KGP and A$2,000 per ounce for MGGP.
GGrroouupp OOrree RReesseerrvveess
The JORC compliant Group Ore Reserves as at 30 June 2022 are estimated at 53.0 million tonnes at 0.8g/t Au for 1.34
million ounces of gold compared with the estimate at 30 June 2021 of 43.5 million tonnes at 0.9g/t Au for 1.20 million
ounces of gold.
The re-estimation of Group Ore Reserves resulted in a 22% increase in tonnes and 12% increase in ounces.
The increase in Ore Reserves was primarily the result of the inclusion of recent drilling results at KGP and a gold price of
A$1,900/ounce (2021: A$1,600/ounce).
Group Ore Reserves
0.28
0.14
1.20
1.34
s
e
c
n
u
O
n
o
i
l
l
i
M
1.5
1.0
0.5
0.0
30-Jun-21
Depletion
Model Update
New Deposits
30-Jun-22
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 77
77
CAPRICORN METALS LTD - Annual Report
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
CCoommppeetteenntt PPeerrssoonnss ssttaatteemmeenntt
The information in this report that relates to Mineral Resources is based on information compiled by Mr. Jarrad Price who
is Resource Geologist and an employee of the Company. Mr. Jarrad Price is a current Member of the Australian Institute
of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under
consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Price consents to the
inclusion in the report of the matters based on the information in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Quinton de Klerk. Mr
de Klerk is a full-time employee of Cube Consulting Pty Ltd and is a Member of the Australian Institute of Mining and
Metallurgy. Mr de Klerk has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. de Klerk
consents to the inclusion in this report of the matters based on the information in the form and context in which it
appears.
Capricorn Metals confirms that it is not aware of any new information or data that materially affects the information
included in the previous ASX announcements on Mineral Resources and Metallurgy (27/10/2022) and, in the case of
estimates of Mineral Resources, Ore Reserves, Plant operating costs and Metallurgy, all material assumptions and
technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are
presented have not materially changed from previous market announcements.
This announcement may contain certain “forward-looking statements” which may not have been based solely on
historical facts, but rather may be based on the Company’s current expectations about future events and results. Where
the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is
expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined
throughout this announcement and all material assumptions are disclosed.
However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could
cause actual results to differ materially from future results expressed, projected or implied by such forward-looking
statements. Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as
governmental regulation and judicial outcomes.
Readers should not place undue reliance on forward looking information. The Company does not undertake any
obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after
the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under
applicable securities laws.
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
KKaarrllaawwiinnddaa GGoolldd PPrroojjeecctt ((‘‘KKGGPP’’))
MMiinneerraall RReessoouurrcceess
The KGP JORC compliant Mineral Resource as at 30 June 2022 is 99.2 million tonnes at 0.7g/t Au for 2.29 million
ounces, compared to 86.7 million tonnes at 0.8g/t Au for 2.14 million ounces at 30 June 2021.
The change in the KGP Mineral Resource from June 2021 to June 2022 reflects a 14% increase in Mineral Resource
tonnes and a 7% increase in KGP Mineral Resource ounces.
OOrree RReesseerrvveess
The KGP JORC compliant Ore Reserve as at 30 June 2022 is 53 million tonnes at 0.8g/t Au for 1.34 million ounces,
compared to 43.5 million tonnes at 0.9g/t Au for 1.20 million ounces at 30 June 2021.
The inclusion of recent drilling results and a gold price of $1,900/ounce (2021: $1,600/ounce) at KGP resulted in a 22%
increase in Ore Reserve tonnes and 12% increase in Ore Reserve ounces.
MMtt GGiibbssoonn GGoolldd PPrroojjeecctt ((‘‘MMGGGGPP’’))
MMiinneerraall RReessoouurrcceess
The MGGP JORC compliant Mineral Resource at 30 June 2022 is 79.7 million tonnes at 0.8g/t Au for 2.083 million
ounces, unchanged from 30 June 2021.
GGrroouupp MMiinneerraall RReessoouurrcceess aass aatt 3300 JJuunnee 22002222
MMeeaassuurreedd
IInnddiiccaatteedd
IInnffeerrrreedd
TToottaall RReessoouurrcceess
FFoorrwwaarrdd llooookkiinngg ssttaatteemmeennttss
GGoolldd
DDeeppoossiitt
Bibra
Open pit
Southern corridor Open pit
Easky
Stockpiles
Open pit
Stockpiles
KKaarrllaawwiinnddaa TToottaall
00..33<<
Mt Gibson
Mt Gibson
Mt Gibson
MMtt GGiibbssoonn TToottaall
GGRROOUUPP TTOOTTAALL
Oxide
Transitional
Fresh
00..44
TTyyppee
CCuutt--ooffff
((gg//tt))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
MMeettaall
((kkoozz))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
MMeettaall
((kkoozz))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
-
-
-
--
--
-
-
-
--
-
-
-
--
--
-
-
-
--
-
-
-
--
--
-
-
-
--
54.8
22.4
3.0
2.1
8822..33
-
-
-
--
0.8
0.7
0.5
0.4
00..77
-
-
-
--
MMeettaall
((kkoozz))
1,392
476
47
30
4.7
11.5
0.7
-
11,,994455
1166..99
-
-
-
--
9.7
7.4
62.6
7799..77
MMeettaall
((kkoozz))
1,498
706
57
30
22,,229911
243
189
1,651
22,,008833
106
229
11
-
334466
243
189
1,651
22,,008833
59.5
33.9
3.7
2.1
9999..22
9.7
7.4
62.6
7799..77
0.8
0.6
0.5
0.4
00..77
0.8
0.8
0.8
00..88
0.7
0.6
0.5
-
00..66
0.8
0.8
0.8
00..88
00..88
8822..33
00..77
11,,994455
9966..77
22,,442299
117799..00
00..88
44,,337744
NNootteess:: 1. Mineral Resources are estimated using a gold price of A$2,200/ounce for Karlawinda and A$2,000/ounce for Mt Gibson.
2. Mineral Resources are estimated using a cut-off grade between 0.3g/t and 0.4g/t Au.
3. The above data has been rounded to the nearest 100,000 tonnes, 0.1 g/t gold grade and 1,000 ounces. Errors of summation may occur due
to rounding.
GGrroouupp OOrree RReesseerrvveess aass aatt 3300 JJuunnee 22002222
GGoolldd
DDeeppoossiitt
PPrroovveedd
PPrroobbaabbllee
TToottaall RReesseerrvveess
TTyyppee
CCuutt--ooffff
((gg//tt))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
MMeettaall
((kkoozz))
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
Bibra
Open pit
Southern corridor Open pit
Stockpiles
Stockpiles
0.3<
0.3<
0.3<
GGRROOUUPP TTOOTTAALL
-
-
-
--
-
-
-
--
-
-
-
--
40.2
10.7
2.1
5533..00
0.8
0.7
0.4
00..88
MMeettaall
((kkoozz))
1,074
240
30
11,,334444
TToonnnneess
((MMtt))
GGrraaddee
((gg//tt))
40.2
10.7
2.1
5533..00
0.8
0.7
0.4
00..88
MMeettaall
((kkoozz))
1,074
240
30
11,,334444
NNootteess:: 1. Ore Reserves are a subset of Mineral Resources.
2. Ore Reserves are estimated using a gold price of A$1900/ounce.
3. Ore Reserves are estimated using a cut-off grade between 0.3g/t and 0.4g/t Au.
4. The above data has been rounded to the nearest 100,000 tonnes, 0.1 g/t gold grade and 1,000 ounces. Errors of summation may occur due
to rounding.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
78
Page | 78
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 79
CAPRICORN METALS LTD - Annual Report
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
CCoommppeetteenntt PPeerrssoonnss ssttaatteemmeenntt
The information in this report that relates to Mineral Resources is based on information compiled by Mr. Jarrad Price who
is Resource Geologist and an employee of the Company. Mr. Jarrad Price is a current Member of the Australian Institute
of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under
consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Price consents to the
inclusion in the report of the matters based on the information in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Quinton de Klerk. Mr
de Klerk is a full-time employee of Cube Consulting Pty Ltd and is a Member of the Australian Institute of Mining and
Metallurgy. Mr de Klerk has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. de Klerk
consents to the inclusion in this report of the matters based on the information in the form and context in which it
appears.
Capricorn Metals confirms that it is not aware of any new information or data that materially affects the information
included in the previous ASX announcements on Mineral Resources and Metallurgy (27/10/2022) and, in the case of
estimates of Mineral Resources, Ore Reserves, Plant operating costs and Metallurgy, all material assumptions and
technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are
presented have not materially changed from previous market announcements.
FFoorrwwaarrdd llooookkiinngg ssttaatteemmeennttss
This announcement may contain certain “forward-looking statements” which may not have been based solely on
historical facts, but rather may be based on the Company’s current expectations about future events and results. Where
the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is
expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined
throughout this announcement and all material assumptions are disclosed.
However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could
cause actual results to differ materially from future results expressed, projected or implied by such forward-looking
statements. Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as
governmental regulation and judicial outcomes.
Readers should not place undue reliance on forward looking information. The Company does not undertake any
obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after
the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under
applicable securities laws.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 79
79
CAPRICORN METALS LTD - Annual Report
TTeenneemmeenntt SScchheedduullee
LLeeaassee
PPrroojjeecctt
CCoommppaannyy
LLooccaattiioonn
SSttaattuuss
M52/1070
E52/1711
E52/2247
E52/2398
E52/2409
E52/3323
E52/3363
E52/3364
E52/3450
E52/3474
E52/3531
E52/3533
E52/3541
E52/3543
E52/3571
E52/3656
E52/3671
E52/3677
E52/3729
E52/3797
E52/3808
L52/174
L52/177
L52/178
L52/179
L52/181
L52/183
L52/189
L52/192
L52/197
L52/223
L52/224
M59/328
M59/402
M59/403
M59/404
M59/772
E59/2439
E59/2450
E59/2546
E59/2594
E59/2606
E59/2611
E59/2612
E59/2655
E59/2656
E59/2657
E59/2751
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Karlawinda
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Crimson Metals Pty Ltd
Greenmount Resources Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Greenmount Resources Pty Ltd
Crimson Metals Pty Ltd
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Application
Application
Application
Application
Application
Application
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
80
PPeerrcceennttaaggee
HHeelldd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Page | 80
CAPRICORN METALS LTD - Annual Report
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn (Continued)
E59/2752
E59/2753
E59/2754
E59/2755
P59/2286
P59/2287
P59/2290
P59/2291
P59/2306
P59/2309
P59/2310
L59/140
L59/198
L59/45
L59/46
L59/53
G59/11
G59/12
G59/13
G59/14
G59/15
G59/16
G59/17
G59/18
G59/48
G59/70
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Mt Gibson
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Crimson Metals Pty Ltd
Metrovex Pty Ltd
Greenmount Resources Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Metrovex Pty Ltd
Greenmount Resources Pty Ltd
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Application
Application
Application
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 81
81
CAPRICORN METALS LTD - Annual Report
Level 3, 40 Kings Park Road
West Perth WA 6000
TELEPHONE:
EMAIL:
WEBSITE:
+61 8 9212 4600
capmetals.com.au
enquiries@capmet.com.au