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2023 ReportPeers and competitors of Capricorn Metals:
Nexus Minerals LimitedANNUAL
REPORT
2023
CAPRICORN METALS LTD
ABN 84 121 700 105
Financial Report for the year ended 30 June 2023
Directors
Mark Clark
Executive Chairman
Share Registry
Automic Pty Ltd
Mark Okeby
Non-Executive Director
Level 5, 191 St Georges Terrace
Myles Ertzen
Non-Executive Director
PERTH WA 6000
Bernard De Araugo Non-Executive Director
Telephone:
+61 2 9698 5414 or 1300 288 664
Company Secretary
Kim Massey
Auditors
KPMG Perth
235 St Georges Terrace
Registered Office & Principal Place of Business
PERTH WA 6000
Level 3, 40 Kings Park Road
WEST PERTH WA 6005
Telephone:
+61 8 9212 4600
Email:
Website:
enquiries@capmet.com.au
capmetals.com.au
Securities Exchange Listing
Capricorn Metals Ltd shares are listed on the
Australian Securities Exchange (ASX).
Code
CMM
q
Contents
Chairman’s report
Environmental, social and governance report
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
2
10
24
33
44
45
46
47
48
49
86
87
CAPRICORN METALS ANNUAL REPORT 2023
1
Chairman’s report
Dear Shareholder
It is with pleasure that I report to you on the continued achievements of
Capricorn in 2023. This year has further consolidated the Company’s
position as a low cost Australian gold producer with a strong growth
outlook.
Capricorn followed up an excellent first year of operations at Karlawinda
with another year of strong production and cashflow. The year also saw us
progress the Mt Gibson Gold Project, completing an extensive resource
drilling programme and estimating a maiden ore reserve underpinned by
a robust pre-feasibility study.
At Karlawinda we achieved record gold production of 120,014 ounces at
an all-in-sustaining-cost of $1,208 per ounce which demonstrates the
quality of the project. Even more importantly, these results demonstrate
the quality and commitment of the management and staff who work at
the project. Karlawinda generated operating cashflow of over $150
million for the year, translating to strong cash build on the balance sheet.
Capricorn’s net cash position strengthened over the course of the year
from net debt of $3.9 million to net cash of $55.9 million.
The cashflow generated allowed Capricorn to invest $35.6 million in
exploration, primarily focussed on more than 108,000 metres of RC
drilling at Mt Gibson that confirmed the potential of the project. This
drilling underpinned the estimation of a maiden ore reserve of 1.45 million
ounces and a PFS that strongly supports the development of the project.
We are excited about the potential of Mt Gibson to become Capricorn’s
second mining operation with gold production of over 150,000 ounces pa
over a long mine life. The development of Mt Gibson would see Capricorn
become a multi mine gold producer with low cost production in the order
of 270,000 ounces pa.
During 2023 we took the opportunity to close-out our gold hedging
A total of 51,000 ounces of gold hedging
commitments for FY24.
contracts were closed for a total cost of $36.8 million. This cost also
included the price of purchased gold put options at A$2,810 per ounce
over the same period of the closed hedging. This limits our downside risk
on the gold price and provides full exposure to any increase in the A$ gold
price in FY24. At the time of writing, the gold spot price is over A$130 per
ounce higher than when the hedging was closed. This increase in around
four months is indicative of the potential value of this transaction.
I believe 2024 will be another exciting year for Capricorn. We expect
Karlawinda to deliver another strong year of gold production, with the
resulting cashflow continuing to underpin the funding of our development
of Mt Gibson.
I would also like to recognise all the hard work and commitment of
Capricorn’s staff, management and our key contractors. It is through
the effort, expertise and resilience of this group of people that we have
delivered such strong results and have created a culture that will see us
continue to do so in the future.
Finally, I would like to thank shareholders for your support of Capricorn
and for sharing our vision to create a high quality, multi mine Australian
gold business.
Mark Clark
Executive Chairman
2
CAPRICORN METALS ANNUAL REPORT 2023 Net cash position increased by
$59.8m to $55.9m
(FY22: net debt $3.9m)
Record revenue of
$320.8m
Underlying profit of
$85.8m
(after tax but before hedge
closure costs & hedge accounting
adjustments).
Operating
cashflow from
Karlawinda of
$153m
Record EBITDA of
$161.9m up from
$153.9m in FY22.
Record gold production
at Karlawinda of
120,014ozs
at AISC of
$1,208/oz
Maiden Ore
Reserve Estimate
at Mt Gibson of
1.45m
ounces
underpinned by robust prefeasibility
study and taking Group Reserves to
2.70m
ounces
CAPRICORN METALS ANNUAL REPORT 2023
3
Highlights | 2023
Corporate
+
Net cash position increased by $59.8m to $55.9m (FY22: net debt
$3.9m) after payment of $36.8m to partially close-out hedge book
(and buy gold put options) and $35.6m in exploration expenditure.
+
+
Profit after tax, gold hedge closure cost and hedge accounting
adjustments was $4.4m (FY22: $89.5m).
Close-out of 51,000 ounces of gold hedging in June 2023 at a cost
+
Increase in net cash position driven by record production at the
of $33.1m provides exposure for the next 12 months to the gold
Karlawinda Gold Project (“KGP”) for FY23 of 120,014 ounces at an
spot price which is currently more than $130 per ounce higher than
all-in-sustaining-cost (“AISC”) of $1,208 per ounce (FY22: 118,432
the spot price at closure.
+
+
+
oz at $1,112/oz).
+
Refinancing of project loan facility with Macquarie Bank during the
Record revenue of $320.8m includes the sale of 120,320 ounces
year which converted the facility into a general-purpose corporate
of gold at an average realised price of $2,665 per ounce.
loan with a single bullet repayment in June 2025.
Record EBITDA of $161.9m up from $153.9m in FY22.
+
Non-binding indicative term sheet for a A$200 million extension of
Profit after tax before gold hedge closure cost and hedge
current corporate loan facility provided by Macquarie Bank to fund
accounting adjustments of $85.8m was in line with the FY22 result
the development of the Mt Gibson Gold Project (“MGGP”).
of $89.5m.
Financial results
Revenue
EBITDA
Profit after tax - before hedge restructure
Hedge closure cost (after tax)
MTM adjustment on hedge book post restructure (after tax)
Net profit after tax
Earnings per share (cents)
EBITDA margin
Cashflow from operating activities
Karlawinda Gold Project (KGP)
Operations
FY23
$’000
320,840
161,925
85,796
(23,173)
(58,224)
4,399
1.18
50.5%
152,560
FY22
$’000
287,043
153,934
89,483
-
-
89,483
24.27
53.6%
134,657
Change
33,797
7,991
(3,687)
(23,173)
(58,224)
(85,084)
23.09
(3.1%)
17,903
+
+
+
+
Record gold production of 120,014 ounces for the year despite significant impact of rainfall on operations in the March 2023 quarter and other
operational challenges.
The AISC of gold production for FY23 at Karlawinda of $1,208/oz continues to be amongst the lowest in the Australian gold industry.
Cashflow from operating activities of $152.6m, up 13% from FY22 reflects the strong operational and financial performance of the KGP.
Capricorn expects to continue strong cashflow generation in FY24 with production guidance of 115,000 – 125,000 ounces at an AISC of
$1,270 - $1,370/oz.
Operating results
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
All-in-sustaining-cost (AISC)
4
BCM (000’s)
BCM (000’s)
w:o
tonnes (000’s)
tonnes (000’s)
g/t
%
ounces
$/oz
FY23
2,443
10,129
4.15
5,807
4,219
0.96
93
120,014
1,208
FY22
2,790
8,954
3.21
5,940
4,450
0.89
94
118,432
1,112
CAPRICORN METALS ANNUAL REPORT 2023 Highlights | 2023
Exploration
Drilling programmes – Near mine
+
Extensive drilling programmes across the KGP tenement package during
the year of 1,020 holes for 73,335 metres identified exciting and near mine
deposits, regional targets and delivered resource and reserve upgrades
in FY23.
+
First pass drilling programmes completed at near mine targets at
Muirfield, Carnoustie, Vedas and Berwick delivered encouraging results
(see below).
Drilling results
Muirfield
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
Carnoustie
5 metres @ 4.0932g/t from 149m
4 metres @ 1.45g/t from 68 to 72m
Vedas
8 metres @ 4.36g/t from 84 to 92m
10 metres @ 1.51g/t from 145 to 155m
8 metres @ 2.24g/t from 112 to 120m
4 metres @ 1.64g/t from 104 to 108m
Berwick
8 metres @ 14.9g/t from 74 to 82m
5 metres @ 9.37g/t from 99 to 104m
4 metres @ 11.25g/t from 45 to 49m
6 metres @ 4.11g/t from 47 to 53m
3 metres @ 7.78g/t from 116 to 119m
2 metres @ 9.36g/t from 78 to 80m
Karlawinda current near mine exploration targets
Drilling programmes - Regional
+
Regional exploration programmes commenced after significant first pass
exploration work during the year across the broader tenement package
including geochemical soil sampling, aeromagnetic surveys and heritage
clearance work.
+
A number of prospective regional targets
identified with drilling
completed, underway or planned at Jamie Well, Donomore, Forfar, Carrot
Hill and Mumbakine Well.
CAPRICORN METALS ANNUAL REPORT 2023
5
Highlights | 2023
Reserves & Resources
+
+
Mineral Resource Estimate (“MRE”) upgraded in October 2022 from 2.14 million ounces to 2.29 million ounces and subsequently depleted for
production to March 2023 to 2.23 million ounces.
Ore Reserve Estimate (“ORE”) upgraded in October 2022 from 1.20 million ounces to 1.34 million ounces and subsequently depleted for production
to March 2023 to 1.25 million ounces.
Mt Gibson Gold Project (MGGP)
Maiden Ore Reserve Estimate and Updated Resource Estimate
Extensive drilling campaign that commenced in January 2022 delivered maiden ORE and robust prefeasibility study into the development
of the MGGP.
Maiden ORE of 48.7 million tonnes at 0.9g/t Au for 1.45 million ounces of gold completed in April 2023.
Updated MRE of 104.9 million tonnes at 0.8g/t for 2.75 million ounces of gold completed in November 2022.
+
+
+
6
CAPRICORN METALS ANNUAL REPORT 2023 Highlights | 2023
Prefeasibility Study
+
Prefeasibility study underpinning maiden ORE demonstrates robust project with forecast gold production averaging 152,000 ounces per annum
over the project’s first 7.5 years of operation at AISC of $1,420 per ounce.
Strong
Production
Profile
Long Mine
Life
Low Cost High
Margin
Low Capital
Cost
Strong Financials
(post capex pretax)
@ GP A$2750/oz
Low Technical
Risk
152kozpa for
first 7.5 yrs
10 years
1.45Moz ORE
AISC A$1,420/
oz first 7.5 yrs
5mpta plant
A$260m
Peak 175kozpa
Avg pit depth
only 140m - drill
to extend
Preproduction
mining A$79m
NPV5
A$828m FCF A$1.2bn
Payback 1.9 years
Open pit
Strip ratio 4.2
Contract mine
Conventional
Processing
93% recovery
+ With the established gold production at KGP, the development of
MGGP has the potential to lift Capricorn to circa 270,000 ounces
per annum production, which would rank Capricorn in the 10 largest
gold producers and in the lowest quartile AISC of ASX listed gold
producers.
Capital cost estimate of $260m for a 5mtpa fresh rock capacity
processing plant and $79m of pre-production mining.
Compelling economic metrics using gold price of A$2,750 per ounce
LOM revenue of A$3.6 billion;
$1.5 billion of operating cashflow over 10 year mine life;
including:
-
-
-
-
-
Board approved advancing project with a target of commencing
Rapid payback period pre-tax of 1.9 years; and
Pre-tax NPV5 of $828 million.
LOM free cash flow (pre-tax) of $1.2 billion;
construction H2CY24 and first gold production H2CY25.
Financing from strong KGP cashflow and $200m extension of
+
+
+
+
corporate debt facility.
Exploration
Drilling programmes – Near mine
+
104,000 metres of resource drilling completed and assayed from
January to November 2022, delivering a substantial MRE increase in
November 2022, which provided a strong basis for a maiden ORE in
April 2023.
CAPRICORN METALS ANNUAL REPORT 2023
7
Highlights | 2023
Drilling results
+
Encouraging results returned from drilling in FY23 include:
8 metres @ 11.24g/t from 76 to 84m
8 metres @ 14.51g/t from 203 to 211m
14 metres @ 12.85g/t from 208 to 222m
47 metres @ 2.36g/t from 78 to 125m
21 metres @ 4.77g/t from 222 to 234m
50 metres @ 2.01g/t from 136 to 186m
17 metres @ 9.16g/t from 228 to 245m
15 metres @ 7.11g/t from 165 to 180m
26 metres @ 4.11g/t from 191 to 217m
20 metres @ 5.11g/t from 236 to 256m
The results received validate 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.
Drilling on the unmined areas Orion, S2, Saratoga and Deep South trends continues to define zones of high-grade within and outside the 2022
resource shell. These trends have the potential to improve the overall economics of the project.
Follow up drilling planned to extend significant mineralisation beyond current resource shells.
Target extension of higher grade areas to develop a better understanding of underground potential.
+
+
+
+
8
CAPRICORN METALS ANNUAL REPORT 2023 Highlights | 2023
Drilling programmes – Regional
+
+
30,000 metre aircore drilling programme underway in FY24 targeting near surface gold deposits proximal to reserves; and
Significant near mine targets parallel to main Mt Gibson mine trend and southern extensions of main mine trend:
-
-
Exciting regional exploration potential across the broader tenement package with first pass drilling completed across the McDonalds/Highway
Significant near mine targets parallel to main Mt Gibson mine trend and southern extensions of main mine trend.
area, 5 kilometres north of the Mt Gibson main mine trend.
-
Drilling confirmed mineralisation with follow-up programmes planned in FY24.
CAPRICORN METALS ANNUAL REPORT 2023
9
Environmental, social and governance report
FY23 SUSTAINABILITY ACHIEVEMENTS
Delivered
inaugural Capricorn Environmental, social and
governance (“ESG”) report.
Signed a Heritage Agreement with the Badimia people over
the area of land comprising the Mt Gibson Gold Project (“MGGP”).
Completed several cultural heritage surveys with the Nyiyaparli,
Ngarlawangga and Badimia people over the Karlawinda Gold
Project (“KGP”) and MGGP project tenements.
Over 84% procurement spend from Western Australia.
Zero reportable environmental incidents in FY23.
Approval and
implementation of a comprehensive water
management strategy for the KGP.
Completed our first materiality assessment.
+
+
+
+
+
+
+
+
Our first ESG report provides a summary of our sustainability strategy
and performance at the Company’s KGP in the Pilbara, our MGGP
being developed project in the Murchison and our corporate head
office in Perth. We consider our business strategies, stakeholder
considerations, peer benchmarks and updates in ESG disclosures in
our reporting. It is an important first step in establishing and reporting
our baseline ESG data and to articulate a roadmap for continuous
improvement. We will continue to expand these to reflect the
company’s growth and sustainability ambitions.
This report is prepared in reference to the Global Reporting Initiative
(GRI) 2021 Standards and covers the period from 1 July 2022 to
30 June 2023. This ESG Report should be read in conjunction with the
financial and governance information from this Annual Report.
Strengthened governance framework with new social and
STAKEHOLDER ENGAGEMENT
environmental policies.
OUR SUSTAINABILITY
APPROACH & SCOPE
We are pleased to deliver our inaugural ESG Report this year,
demonstrating our commitment to shared and sustainable
value for all our stakeholders. We recognise that responsible
stewardship of environmental, social and governance activities
are not only important to our shareholders, but shape the
relationship we have with our employees, our communities,
and the impact on the natural environment where our projects
are located.
We believe that positive collaboration with all our stakeholder groups is
critical to the success of our projects and forms the basis for our social
license to operate. As part of the materiality assessment, we mapped
our key stakeholders, summarising the purpose and priorities of our
engagement and the different ways we communicate and engage with
these groups.
10
CAPRICORN METALS ANNUAL REPORT 2023 Environmental, social and governance report
STAKEHOLDER GROUP
Internal stakeholders
Employees and contractors
Board
External stakeholders
Shareholders & investors
Nyiyaparli, Ngarlawangga, Badimia People
and their communities
Local communities
State, federal government and local shires
PRIORITIES
ENGAGEMENT
A safe and healthy workplace; employee
retention and development; professional
development and training opportunities
Regular communication and consultation;
Training and development programs
Prudent and transparent corporate
governance; risk management; return on
investment
Regular Board meetings; AGM; Annual
Report; direct and open communication lines
between executive and Board
Return on investment and equity;
Sensible allocation of capital and
management of risk
Respect for local customs and laws; cultural
heritage preservation; land agreements; land
care
Social investment with local community;
environmental impact and performance;
access to pastoral land
Regulatory compliance with laws and policies;
Land access and approvals
ASX releases, investor briefings, road
shows, presentations, annual, half yearly and
quarterly financial reports, direct engagement,
AGM, Annual Report
Face-to-face meetings, cultural surveys and
mapping
Community engagement and consultation;
Direct engagement; Whistleblower Policy
Direct engagement and consultation
Regular submission of data and requests for
information; direct engagement
Regular investor presentations; annual, half
yearly and quarterly financial reports; direct
engagement; ASX releases
Direct engagement; communications; training
Community engagement;
Direct engagement; Whistleblower Policy
Regulatory agencies
Compliance reporting
Financial providers and analysts
Suppliers
Pastoralists
Transparent reporting of company
updates and ESG programme; prudent
risk management; financial performance;
governance
Quality goods & services; prompt payment;
responsible sourcing
Social investment with local community;
environmental impact and performance;
access to pastoral land (Weelarrana pastoral
station)
General public and partners
Community engagement and support
Direct engagement; Whistleblower Policy
Media
Risk management; environmental
performance; community engagement
Transparent public reporting and media
engagement; ASX releases
Community organisations and local
businesses
Local procurement and support; social
investment
Business procurement support; community
engagement, meetings and correspondence
as required
Peers and industry groups
Industry knowledge and networking
Regular engagement and collaboration
Educational institutions
Employment, training and industry pathways
Communication and consultation; research
and collaboration
CAPRICORN METALS ANNUAL REPORT 2023
11
Environmental, social and governance report
MATERIALITY ASSESSMENT
Capricorn undertook its first materiality assessment this year to identify
and prioritise the material topics with the greatest impact on our
business and stakeholders. Working with external ESG consultants,
we formed an ESG project team with internal subject matter experts
and representatives from the executive. The team mapped key
stakeholders and considered sustainability risks and opportunities
across our operations, aligned with our strategic focus and reporting
obligations. They prioritised the most important topics, with the results
reviewed and approved by Capricorn’s executive team and the Board.
Identify
Prioritise
Validate
Review
Senior leaders within the
Company reviewed and
validated the outcomes of the
materiality assessment.
Material topics will be
reviewed on an annual basis.
Stakeholders were mapped
and a list of potential material
topics was compiled based on
our understanding of material
risks, industry benchmarks,
company strategic focus and
stakeholder expectations.
Internal stakeholders were
invited to rate the importance
of each topic. Results were
then used to formulate
a materiality matrix with
prioritised material topics
under two dimensions:
importance to business
and importance to our
stakeholders.
MATERIAL TOPICS
Our top eight material topics as selected by Capricorn for reporting
in FY2023 are listed in the pillars below. These topics reflect the
current focus of the company and inform the content of this report.
ENVIRONMENT
Climate Change & Emissions
Biodiversity & Environmental Management
Water Management
SOCIAL
Health, Safety & Wellbeing
Cultural Heritage
Diversity & Equal Opportunity
GOVERNANCE
Business Ethics & Governance
Economic Performance
12
CAPRICORN METALS ANNUAL REPORT 2023 Environmental, social and governance report
REPORTING STANDARDS
Global Reporting Initiative
We have drawn on disclosure guidance
from the Global Reporting Initiative (GRI)
Standards 2021. This report incorporates
the GRI principles of organisational
context,
and materiality
assessment and prioritisation.
structure
Taskforce on Climate-Related Financial Disclosures (TCFD)
Capricorn recognises the
importance of managing our carbon
footprint in response to global warming. We intend to report against
the Taskforce on Climate-Related Financial Disclosures (TCFD). The
TCFD framework is structured around four key areas: governance,
strategy, risk management, and metrics and targets. These disclosure
recommendations will provide transparency on our climate-related risk
exposure and help us to implement appropriate mitigation measures
and capture opportunities. We plan to address these over the
medium term, beginning with governance, physical and transition risk
identification in FY2024.
Disclosure Recommendations
The Task Force developed four widely-adoptable
recommendations on climate-related financial disclosures that
are applicable to organisations across sectors and jurisdictions.
The recommendations are structured around four thematic areas
that represent core elements of how organisations operate:
Governance
Strategy
Risk Management
Metrics and Targets
Governance
The organisation's governance around climate-related risks
and opportunities
Strategy
The actual and potential impacts of climate-related risks
and opportunities on
the organisation's businesses,
strategy, and financial planning
Risk Management
The processes used by the organisation to identify, assess,
and manage climate-related risks
Metrics and Targets
The metrics and targets used to assess and manage
relevant climate-related risks and opportunities
CAPRICORN METALS ANNUAL REPORT 2023
13
Groundwater Dependant Vegetation Assessment (GDV)
At the KGP Capricorn engaged an
independent environmental
specialist to complete two Groundwater Dependant Vegetation
(GDV) assessments at four locations on the Weelarrana pastoral
station during the year. We also carried out a Groundwater Dependent
Ecosystem (GDE) assessment on the KGP and surrounding areas,
focusing on Savory Creek. This assessment has evaluated the
presence/absence of GDEs. We also completed an onsite field
assessment to determine the presence of key phreatophytic species
and then determined the level of dependency and potential impact to
the GDEs from the proposed activities. The results of the assessment
indicated that the projects’ activities are unlikely to
impact the
surrounding vegetation communities.
Fauna update
We have an Environmental Policy in place to protect native fauna, as
well as specific actions in case there is an injured animal. The KGP
has six certified snake handlers and three fauna handlers and works
actively with native fauna when necessary.
Rehabilitation update
This year at the KGP 142ha of transport and service infrastructure
disturbance is currently under rehabilitation. A total of 83,984m³ of
topsoil was stockpiled during the reporting period with a gross total of
592,293m³ available for rehabilitation on closure.
inspection
Capricorn also
in 20
initiated a topsoil rehabilitation
stockpile points in 2021 (Tailings Storage Facility, waste dump, plant,
ROM and aerodrome). The programme consists of a biannual (twice
per year January and July) inspection of the various topsoil locations
with photographic evidence. The photographic stations were designed
to take pictures at the same point and direction while the topsoil
rehabilitation monitoring programme is functioning. The inspection
aims to verify changes of pioneer and succession vegetation species
in the stockpiles, verifying the condition of the soils.
Future focus
In FY24 at the KGP, we plan to commence waste rock landform
rehabilitation and continue GDV/GDE assessments and topsoil
monitoring.
Environmental, social and governance report
ENVIRONMENTAL
Material topic: Biodiversity & Environmental
Management
Careful stewardship of the natural environment at our projects in the
Pilbara and Murchision is a priority focus for Capricorn. We recognise
that our operations, particularly through clearing, ground disturbance,
mining vehicle movement and waste disposal can have a significant
impact on the ecosystems within our tenement areas. We have put in
place measures to address and avoid any potential significant impacts
on vegetation and fauna species.
Environmental Management System
We have implemented an Environmental Management System (EMS)
to manage any biodiversity and environmental impacts, and to identify
and address risks and compliance issues at our operations.
The Environment Management Plan (EMP) is a key element of the
EMS. The EMP outlines the programme for Capricorn to effectively
manage environmental factors in all our activities and to meet our
legal and compliance obligations. As well as managing the risk of
unintended or unnecessary environmental impacts, the EMP also
seeks to reduce or eliminate the business risk associated with poor
environmental outcomes at our operations. The EMS is aligned with
the international standard for environmental management systems,
ISO 14001:2015, and will be continuously updated and amended to
ensure that:
Understand and adhere to our legal and compliance obligations.
+ We meet our environmental objectives and targets.
+
+
Our environmental management activities are clearly defined.
+ We demonstrate a commitment to successful environmental
management.
We seek to continuously improve our environmental management
procedures by applying the Plan-Do-Check-Act (PDCA) model as
illustrated in the figure below.
Plan
Planning
Improvement
Leadership
Support and
Operation
Do
Performance
Evaluation
Check
Act
14
CAPRICORN METALS ANNUAL REPORT 2023
Environmental, social and governance report
Rehabilitation focus
Land disturbance & rehabilitation
FY23 (hectares)
Gross land disturbed at the beginning of the reporting period
Current land disturbed at the beginning of the reporting period
Newly disturbed land
Gross land disturbed at the end of the reporting period
Newly rehabilitated land to agreed end use
Total land rehabilitated to date
Total current land disturbed (for future rehabilitation)
Total land disturbance that has been rehabilitated to date
Environmental compliance
Material environmental incidents
Monetary value of significant fines
Non-monetary sanctions
1,045
1,045
72
1,117
142
142
975
1.14
Unit
Number
$
Number
FY23
0
0
0
Material topic: Water Management
Tailings Storage Facility
Water scarcity is one of the most critical natural environmental issues
in Western Australia and is also a vital resource for ore processing. We
understand the importance of sensitively managing our water use and
minimising any impact from our operations on this precious resource.
Our commitments to responsible water stewardship and sourcing
are outlined in our Environment Policy. No incidents or compliance
breaches with respect to water management were recorded in FY23.
Water operating strategy
This year at the KGP we developed and implemented a comprehensive
water operating strategy which was revised and formally approved
by the Department of Water and Environmental Regulation (DWER).
Monitoring the programs across our operations
is essential to
assess potential
impacts, evaluate and refine hydrogeological
conceptualisation and inform modelling of the groundwater regime.
Our efforts to maximise water recovery from the Tailings Storage
Facility (TSF) achieved 46% recovery in FY23. We have ‘low-to-no’
risk from water stress in our operational areas because we do not
compete with others for water allocation, nor do we use surface water
in our operations. Vehicle maintenance is undertaken in designated
workshop areas on concrete pads where water is drained to a clean
water recovery system. Washdown water is treated via a process to
separate solids and hydrocarbons from the water. The treated water is
re-used for dust suppression purposes.
Water efficiencies
Other practices undertaken to ensure the efficient use of water around
the KGP site, include:
+
Tailings delivery and water return pipes and containment corridor
are inspected daily for any visible leakage or damage.
The specific objectives of the monitoring programme includes:
+ Weekly inspections of all pipelines and regular maintenance and
+
+
+
the early
identification of potentially adverse environmental
impacts.
assess and refine the hydrogeological conceptualisation.
understand and communicate the impact of the operation on the
groundwater regime.
correct operation of borefield infrastructure.
+
If significant change occurs to the process demand or overall
water use, the site water balance will be reviewed to identify where
opportunities exist to improve water use efficiencies.
+ Water use efficiency
initiatives are continually reviewed and
reported on in the annual monitoring reports.
CAPRICORN METALS ANNUAL REPORT 2023
15
Environmental, social and governance report
Water management performance at the KGP
Water withdrawal
Surface water withdrawn
Borefield water withdrawn
De-watering
Third party water withdrawn
Water returns to the environment
Surface water discharged
Managed aquifer recharge
Third party water discharged
Recycled water
Water reused
Water clarifier
FY23
Nil
3,182,693m³
192,540m³
Nil
FY23
Nil
Nil
Nil
FY23
Nil
Nil
Reverse osmosis – water reused
34,685m³
Reused water
Tailing decant return
Other water reuse activities
FY23
2,665,578 m³
Nil
Material topic: Climate Change and Emissions
We recognise the impact of the mining sector on the warming climate,
the associated climate risks for our projects and the importance
of actively managing emissions across our business. Climate
is
considered as part of the sustainability and environmental risks
addressed by our Risk Management Framework, governed by our
Audit and Risk Committee Charter, which is available on our website.
Climate risk disclosure
As mentioned in our reporting section, we also have ambitions to map
our climate risks against the Taskforce for Climate-Related Financial
Disclosures (TCFD). The TCFD framework is structured around four
key areas: governance, strategy, risk management, and metrics and
targets. These disclosure recommendations will provide transparency
on our climate-related risk exposure and help us better understand the
risk and opportunities posed by climate change.
Emissions & Energy
Capricorn has chosen to utilise gas over diesel as a primary energy
source to
improve greenhouse gas emissions efficiencies over
the life of the KGP. We report our annual emissions to the National
Environmental Protection (National Pollution Inventory) and the
National Greenhouse and Energy Reporting Act 2007.
16
CAPRICORN METALS ANNUAL REPORT 2023 Operations
Corporate Office
163,641
0
1,659,815
294,710
1,365,105
0
0
0
24,648
89
0
0
89
0
Total
79,684
17
79,701
Environmental, social and governance report
Energy and emissions performance
Energy consumption
Diesel
Electricity purchased from grid
Total energy consumption
+ Energy produced & consumed (thermal generation)
+ Energy consumed (diesel, petroleum & natural gas)
+ Energy consumed (electricity purchased)
Percentage of total energy consumption from renewable sources
Unit
L
kWh
GJ
GJ
GJ
GJ
%
Emissions
Scope 1 emissions
Scope 2 emissions
Total emissions (Scope 1 & 2)
Air Emissions
Carbon monoxide
Lead & compounds
Mercury & compounds
Oxides of nitrogen
Particulate Matter 10.0 um
Particulate Matter 2.5 um
Sulfur Dioxide
Total Volatile Organic Compounds
Unit
t CO2 -e
t CO2 -e
t CO2 -e
Operations
Corporate Office
79,684
0
0
17
Unit
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Operations
174,400
93
1,51
405,000
2,712,230
19,650
388
13,114
Dust management
Dust management is undertaken on a continuous basis across the
KGP operations to prevent impacts to the environment, and to ensure
safe operations for mining activities. Dust controls include:
+ Water carts (applying dewatering water to roads and other areas
at high risk of generating dust).
Sprinklers and sprays in the processing plants.
Return scrapers on conveyor belts.
Restricted traffic areas.
Speed limits and signage in designated work areas.
Regular road maintenance and formal inspections and audits.
+
+
+
+
+
Waste management initiatives
Sustainable waste management was one of the many focuses for our
operation when it commenced and we immediately implemented a
waste reduction programme across the KGP operation. Containers
and cardboard are a significant contributor to our landfill and recycling
these not only reduces our waste volumes but has raised over
$21,000 for our designated charity, Perth Children’s Hospital (PCH). To
date, we have recycled 211,249 containers raising over $21,000 with
100% being donated to PCH. During the last financial year 146,897
containers generated $14,690 in funding support. In addition to the
containers, we have recycled 4.7 tonnes of cardboard which would
otherwise have gone to site landfill.
CAPRICORN METALS ANNUAL REPORT 2023
17
Environmental, social and governance report
SOCIAL
Material topic: Health, Safety & Wellbeing
We want everyone to be safe and healthy at work. It is with deep
regret however that we recorded one fatality at our KGP in October
2022 with the death of an employee of mining contractor MACA. The
safety and wellbeing of all employees and contractors of the Company
remain our highest priority and our thoughts and condolences remain
with the MACA employee’s family, friends and colleagues. Counselling
was provided on-site and available post event to all personnel involved
or impacted by this tragic incident.
We resolve to further our commitment to the highest standards of
health and safety by strengthening audit and assurance programmes,
prioritising safety training, effective risk and hazard assessment,
incident investigation and active engagement by all employees and
contractors. As a company, we seek to drive continuous improvements
in health and safety management, while encouraging everyone to take
responsibility for safe work practices.
Health & Safety Policies
Our overarching approach and objectives for health and safety
are described in our Health and Safety Policy, which highlights risk
Data Indicators1
Fatalities
Fatality Rate
Lost Time Injuries (LTI)
Lost Time Injury Frequency Rate (LTIFR)
Medical Treatment Injuries (MTI)
Medical Treatment Injury Frequency Rate (MTIFR)
First Aid Injuries (FAI)
Restricted Work Injuries (RWI)
Restricted Work Injury Frequency Rate (RWIFR)
Total Recordable Injuries (TRI)
Total Recordable Injury Frequency Rate (TRIFR)
Total hours worked
management principles to identify and reduce risks, a consultative
approach with employees on safety matters and an emphasis on
safety training.
Other more specific policies include a Workplace Rehabilitation Policy
which sets out the company’s commitments following a workplace
injury; and a Mental Health and Wellbeing Policy that describes our
position on an inclusive and supportive workplace and the promotion
of measures to support mental health and wellbeing.
Health & Safety Management System
We have adopted a comprehensive Workplace Health & Safety (WHS)
Management System, aligned to ISO45001 and the WorkSafe Mine
Safety Management System Code of Practice, which covers all of our
employees and contractors. It has recently been externally audited
against the WHS Act 2020 and WHS (Mines) Regulations 2022.
In the 2023 financial year, Capricorn achieved safety frequency rates
of 7.14 for Total Recordable Injury Frequency Rate (TRIFR) and 1.43 for
Lost Time Injury Frequency Rate (LITFR).
Employees & contractors FY23
1
1.43
1
1.43
1
1.43
22
3
4.28
5
7.14
700,578
Percentage of employees and contractors covered by occupational health and safety management system 100%
1
Capricorn fatality rates, LTIFR, MTIFR, TRIFR and RWIFR are calculated by the number of injuries/fatalities divided by the total hours worked x 1,000,0000 hours worked.
12 Month Rolling Injury Frequency Rates
TRIFR
LTIFR
RWIFR
MTIFR
14
12
10
8
6
4
2
0
s
r
h
n
o
i
l
l
i
m
1
/
e
t
a
R
y
c
n
e
u
q
e
r
F
18
JUL 22
AUG 22
SEP 22
OCT 22
NOV 22
DEC 22
JAN 23
FEB 23
MAR 23
APR 23
MAY 23
JUN 23
JUL 23
CAPRICORN METALS ANNUAL REPORT 2023
Environmental, social and governance report
Safety training
Safety training initiatives in FY23 included:
+
Introduction of a monthly safety reward programme for our
employees and contractors.
+ WHS Training completed as per position requirements with over
13,000 hours of internal, online or external training recorded.
+
+
Commenced WHS Training for statutory position holders in line
with new WHS (Mines) Regulations 2022.
Continued with Cert III Mine Emergency Response and Rescue
courses for ERT Members.
Health and Wellbeing
Health and wellbeing initiatives in place in FY23 include:
+
+
+
Development of a Mental Health and Wellbeing Policy to guide
best practice within the company.
An Employee Assistance Programme (EAP), available to all
employees.
A weekly medical clinic available to all employees and contractors
provides general health and mental health support and nutritional
advice.
+
Routine training provided through our toolbox sessions with a
focus on mental health, targeting the implementation of formalised
+
+
training and education sessions.
Medics trained in mental health first aid.
An on-site social club was formed with several events and
competitions organised throughout the year.
Material topic: Cultural Heritage
We consider our relationships with our Indigenous communities,
the Nyiyaparli, Ngarlawangga and the Badimia people, to be of vital
importance. We respect their connections to country and will seek
to preserve and protect their cultural heritage. We believe that we
can help safeguard these values and contribute to the long-term
sustainability of our operations through careful management of the
environment, the preservation of cultural sites and a positive and
collaborative working relationship.
Australian regulations and
Aboriginal communities to
undertaking exploration and mining activities.
laws also require us to engage with
identify cultural heritage sites prior to
Heritage agreement with the Badimia people
We executed a Heritage agreement with representative corporations
of the local Badimia people in June 2023 for the MGGP. The Badimia
people are represented by the Badimia Land Aboriginal Corporation
(BLAC) and the Badimia Bandi Barna Aboriginal Corporation (BBBAC).
During FY22 and FY23, multiple heritage and ethnographic surveys
have been carried out with Badimia knowledge holders. Key decisions
and changes to the project layout have been made subsequent to
these surveys and discussions.
Land access agreement with the Nyiyaparli people
In FY23, we were pleased to amend the Land access agreement with
the Nyiyaparli people entered into in 2016 to include newly granted and
acquired tenements for our KGP. The Nyiyaparli people hold native title
over the area of the KGP. Heritage notices surveys, and consultation
permission requests were completed to facilitate access for exploration
activities during the year.
Cultural awareness & engagement
In addition,
implemented in FY23:
the
following measures and programmes were
+
+
+
+
Cultural awareness programmes were conducted for all onsite
staff at Karlawinda.
Annual meeting with Traditional owners.
Continuous engagement on heritage surveys.
As requested, heritage sites were kept confidential with no
markings or identification.
Future focus
In FY24 we will provide cultural awareness training to new personnel
onsite and will commence training at our MGGP as the project
develops.
CAPRICORN METALS ANNUAL REPORT 2023
19
Environmental, social and governance report
Material topic: Diversity & Equal Opportunity
We consider workforce diversity to include employees and contractors
across gender, age, ethnicity and cultural background characteristics.
We believe that it provides increased access to a broader talent pool of
high quality employees, improves employee retention and enables the
Company to draw on different perspectives and ideas. Our general
female participation rate is 27% of the total workforce, well
above the mining industry average of 20% (Workplace Gender
Equality Agency Scorecard, 2021-22).
Total workforce
Data Indicator
Total senior management employees
Total general employees
Total employees
Gender diversity snapshot
Total workforce by gender
Total male
Total female
Senior management by gender
Male
Female
Board team by gender
Male
Female
FY23
3
139
142
103
39
3
0
4
0
Diversity is governed through our Code of Conduct Policy, Diversity
Policy, and Remuneration, & Nomination Diversity Charter. At the Board
level, the Remuneration, Nomination and Diversity Committee reviews
and recommends policies that will promote Board and workplace
diversity committee and inclusion. In FY24 we have appointed a
female director to the Capricorn Board.
Age diversity snapshot
General employees by age
Under 30
30-50
Over 50
Senior management by age
Under 30
30-50
Over 50
Board team by age
Under 30
30-50
Over 50
28
98
13
0
0
3
0
1
3
20
CAPRICORN METALS ANNUAL REPORT 2023 Environmental, social and governance report
GOVERNANCE
Material Topic: Business Ethics & Governance
Modern Slavery
Capricorn recognises that high standards of accountability and
transparency have their foundation in a strong governance framework.
We have a suite of governance policies and charters available on our
website that sets out our approach to governance and business integrity.
There were no governance or ethical breaches recorded in FY23.
Corporate governance structure
The Board, which meets on a regular basis,
is responsible for
corporate governance and risk management oversight, and delegates
business strategy and executive decision-making to our senior
management team. Executive responsibility lies with the Executive
Chairman, who in turn, is accountable to the Board. There are clear
lines of communication between the Executive Chairman and the
Board. These roles are outlined in the Board Charter on our website,
including those related to social and governance risk. The Company’s
Audit and Risk Management Committee is responsible for overseeing
the management of sustainability risks, including environmental, social
and governance risks.
While the Board has overall accountability for establishing and
delivering an effective governance framework, all Capricorn employees
share responsibility for upholding our corporate governance standards.
These are outlined in our Corporate Code of Conduct Policy.
Legal and regulatory framework
The ASX Listing Rules and ASX Corporate Governance Principles
require us to address significant corporate governance risk and report
our progress. We are also subject to regulatory obligations under the
Corporations Act 2001 (Cth).
Corporate Code of Conduct
Our Corporate Code of Conduct Policy, available on our website,
outlines our commitment
in our
employment and business approach. It sets out the duty of care to our
employees, contractors and other stakeholders and the standards
and expectations of appropriate conduct in different contexts.
integrity and
fair dealing
to
Anti-Bribery & Corruption
We do not tolerate bribery or corruption in any form. Our Anti-Bribery
and Corruption Policy sets out our responsibilities to uphold our
position on these matters and how to recognise and deal with any
possible breaches and suspicious activity. The policy also provides
strict guidelines with respect to financial benefits such as gifts, travel
and hospitality.
Whistleblower
Directors, employees, contractors and suppliers of Capricorn are
expected to act with honesty and integrity. Our Whistleblower Policy,
available on our website, is the formal procedure which enables any
person to raise concerns about reportable conduct.
Modern Slavery risks are overseen by the Company’s Audit and Risk
Management Committee. In FY23, we developed a Modern Slavery
Statement to guide our principles and risks with respect to our
business and supply chain. We consider that we have a relatively low
risk of slavery in our supply chains as our business activities are based
in Australia, which is not considered a high-risk jurisdiction for modern
slavery. Although we retain some international subsidiaries, these only
hold real estate and do not trade.
Memberships & Associations
Capricorn supports a thriving mining sector and ongoing professional
development and networking opportunities. We participate in the
following associations and networks: Association of Mining and
Exploration Companies (AMEC), Chamber of Minerals and Energy
(CME), Gold Industry Group and the Australian Resources & Energy
Employer Association (AREEA).
Material Topic: Economic Performance
Delivering a strong economic performance creates shared and
sustainable value for our stakeholders. We are focused on the
efficient management of our business so we can continue to grow
our operations, pay our obligations, reinvest assets and reward our
shareholders.
Financial management
The Capricorn Board provides general
financial performance
oversight. Together with the Audit and Risk Management Committee,
they receive regular risk management updates and periodically review
the risk management framework. Our senior management team, led by
the Executive Chairman, Chief Executive Officer and Chief Operating
Officer, is responsible for day-to-day management of operations and
administration.
Economic contribution
Capricorn is committed to supporting the communities in which we
operate and is a significant contributor to the Australian economy.
In FY23 Capricorn spent over $192 million in supplier payments,
wages, royalties and taxes with over 99% of that expenditure
within the Australian economy. Capricorn prides itself on providing
significant support to local and regional suppliers with the bulk of the
total expenditure within Western Australia.
Origin supplier costs
Local area
Western Australia
Rest of Australia
International
Total
$M
$M
$M
$M
$AUD
2023
$3.1
$159.6
$27.5
$2.1
$192.3
CAPRICORN METALS ANNUAL REPORT 2023
21
Environmental, social and governance report
FY23 Capricorn spend by region
Local Area
Western Australia
Rest of Australia
International
Tax transparency
We provide a transparent approach to tax and are fully compliant with
all tax regulations. The authority for tax risk management lies with the
Audit Committee and the Board, with responsibilities outlined in the
Audit Committee Charter. An overview of the company’s tax position
for FY2023 can be found in this annual report.
Financial performance
+
Net cash position increased by $59.8m to $55.9m (FY22: net debt
$3.9m) after payment of $36.8m to partially close-out hedge book
(and buy gold put options) and $35.6m in exploration expenditure.
+
Increase in net cash position driven by record production at the
KGP for FY23 of 120,014 ounces at an all-in-sustaining-cost (AISC)
of $1,208 per ounce (FY22: 118,432 oz at $1,112/oz).
+
+
+
Record revenue of $320.8m from the sale of 120,320 ounces of
gold at an average realised price of $2,665 per ounce.
Record EBITDA of $161.9m, compared with $153.9m in FY22.
Profit after tax before gold hedge closure cost and hedge
accounting adjustments of $85.8m was in line with FY22 result of
$89.5m.
+
Profit after tax, gold hedge closure cost and hedge accounting
adjustments was $4.4m (FY22: $89.5m).
Please refer to our Annual Report for a full summary of our FY23
financials.
FY24 Future focus
In FY24, we aim to continue profitability and returns for our
shareholders. We will continue to progress development at our MGGP
and seek to obtain the necessary permits and approvals to commence
construction of the project.
Capricorn expects to continue its strong operational performance at
the KGP in FY24 with gold production guidance of 115,000 -125,000
ounces at an AISC range of $1,270 - $1,370 per ounce and growth
capital of $10-20 million.
22
CAPRICORN METALS ANNUAL REPORT 2023 CAPRICORN METALS ANNUAL REPORT 2023
23
DDiirreeccttoorrss’’ rreeppoorrtt
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 2023 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 2022 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 also served as Managing Director of Regis Resources Limited (“Regis”) from
May 2009 until November 2016 when he was appointed Executive Chairman. 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 joined Capricorn Metals in July 2019 and has overseen the successful
development and commissioning of the Karlawinda Gold Project and the acquisition
of the Mt Gibson Gold Project.
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 1980’s 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 2015) 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:
Chairman of Peel Mining Limited (appointed 3 March 2022)
Non‐Executive Director of Red Hill Iron Limited (August 2015 to present)
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
in the permitting,
development companies and has significant experience
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.
MMrr MMyylleess EErrttzzeenn
B.Sc Grad Dip App Fin
NNoonn‐‐EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 13 September 2019
24
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 3
CAPRICORN METALS ANNUAL REPORT 2023
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 2023 and the audit report thereon, made in accordance with a resolution of the Board.
The Directors of the Company who held office since 1 July 2022 and up to the date of this report are set out below.
Directors were in office for the entire year unless stated otherwise.
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
MMrr BBeerrnnaarrdd DDee AArraauuggoo
B.App.Sc (Metallurgy)
NNoonn‐‐EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 26 May 2021
DDiirreeccttoorrss’’ rreeppoorrtt
DDiirreeccttoorrss
MMrr MMaarrkk CCllaarrkk
B.Bus, CA
EExxeeccuuttiivvee CChhaaiirrmmaann
Appointed 8 July 2019
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
9
9
9
9
9
9
9
9
‐
5
5
5
‐
5
5
5
‐
3
3
3
‐
3
3
3
M Clark
M Okeby
M Ertzen
B De Araugo
PPrriinncciippaall AAccttiivviittiieess
The principal activities of Capricorn during the financial year were:
‐
‐
exploration, evaluation, development and production at 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 operation of the Karlawinda Gold Project. In addition, the Company
actively pursued its strategy of developing into a multi operational gold company undertaking an extensive resource
drilling programme at the MGGP culminating in a maiden ore reserve estimate and prefeasibility study released in April
2023.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 4
25
MMrr MMaarrkk OOkkeebbyy LLM
NNoonn‐‐EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 8 July 2019
Mr Okeby began his career in the resources industry in the 1980’s 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 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 also served as Managing Director of Regis Resources Limited (“Regis”) from
May 2009 until November 2016 when he was appointed Executive Chairman. 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 joined Capricorn Metals in July 2019 and has overseen the successful
development and commissioning of the Karlawinda Gold Project and the acquisition
of the Mt Gibson Gold Project.
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.
Mr Okeby is currently a director of Red Hill Iron Limited (appointed in 2015) 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:
Chairman of Peel Mining Limited (appointed 3 March 2022)
Non‐Executive Director of Red Hill Iron Limited (August 2015 to present)
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.
MMrr MMyylleess EErrttzzeenn
B.Sc Grad Dip App Fin
NNoonn‐‐EExxeeccuuttiivvee DDiirreeccttoorr
Appointed 13 September 2019
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Page | 3
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
The Company’s objectives are to:
Continue 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;
Continue the technical, environmental and other studies required to advance the permitting and development of the
MGGP 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 and has a 10‐year mine life on current reserves. The KGP completed its second full year of
operations producing 120,014 ounces of gold at all‐in‐sustaining‐costs (“AISC”) of $1,208 per ounce.
The Company’s second project is the MGGP, located in the Mid‐West region of Western Australia, 280 kilometres north‐
east of Perth. Capricorn acquired the MGGP in July 2021 at an acquisition cost of $39.6 million and a 1% net smelter
royalty on all minerals produced from the project including gold production in excess of 90,000 ounces. The Company
continued an extensive resource drilling programme at MGGP during the year and announced a maiden ore reserve
estimate of 1.45 million ounces in April 2023 together with the results of a prefeasibility study.
FFiinnaanncciiaall ssuummmmaarryy
KKeeyy ffiinnaanncciiaall ddaattaa
Sales revenue
Cost of sales (excluding D&A) (1)
Other income
Corporate, admin and other costs
EBITDA (1)
Depreciation & amortisation (D&A)
Net finance costs
Profit before tax
Income tax expense
Profit/(loss) after tax
Cashflow from operating activities
Cash and cash equivalents
Borrowings
Net cash/(debt)
Net assets
Basic earnings per share (cents per share)
22002233
$$‘‘000000
320,840
(146,429)
34
(12,520)
116611,,992255
(27,510)
(125,249)
99,,116666
(4,767)
44,,339999
152,560
106,471
(50,613)
55,858
256,537
1.18
22002222
$$‘‘000000
287,043
(118,975)
229
(14,363)
115533,,993344
(31,665)
(11,363)
111100,,990066
(21,423)
8899,,448833
134,657
61,502
(65,386)
(3,884)
247,535
24.27
CChhaannggee
$$’’000000
33,797
(27,454)
(195)
1,843
77,,999911
4,155
(113,886)
((110011,,774400))
16,656
((8855,,008844))
17,903
44,969
14,773
59,742
9,002
(23.09)
CChhaannggee
%%
12
23
(85)
(13)
55
(13)
1,002
((9922))
(78)
((9955))
13
73
(23)
(1,538)
4
(95)
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 $4.4 million for the full year to 30 June 2023, down from $89.5 million in the
previous year, primarily due to one‐off finance costs associated with the restructuring of gold forward contracts (see “Net
finance costs” below).
EBITDA increased 5% to $161.9 million for the full year to 30 June 2023 as higher gold sales revenue offset increases in
operating and overhead costs.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
26
Page | 5
CAPRICORN METALS ANNUAL REPORT 2023
Continue 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
Continue the technical, environmental and other studies required to advance the permitting and development of the
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
The Company’s objectives are to:
KGP tenement package;
MGGP in due course; and
Actively pursue inorganic growth opportunities.
OOppeerraattiinngg aanndd FFiinnaanncciiaall RReevviieeww
OOvveerrvviieeww
located in Western Australia.
Capricorn Metals Ltd is an Australian based gold producer and exploration company with two distinct project areas
The KGP is located 65 kilometres south‐east of Newman in the Pilbara region of Western Australia. The KGP commenced
operations in June 2021 and has a 10‐year mine life on current reserves. The KGP completed its second full year of
operations producing 120,014 ounces of gold at all‐in‐sustaining‐costs (“AISC”) of $1,208 per ounce.
The Company’s second project is the MGGP, located in the Mid‐West region of Western Australia, 280 kilometres north‐
east of Perth. Capricorn acquired the MGGP in July 2021 at an acquisition cost of $39.6 million and a 1% net smelter
royalty on all minerals produced from the project including gold production in excess of 90,000 ounces. The Company
continued an extensive resource drilling programme at MGGP during the year and announced a maiden ore reserve
estimate of 1.45 million ounces in April 2023 together with the results of a prefeasibility study.
FFiinnaanncciiaall ssuummmmaarryy
KKeeyy ffiinnaanncciiaall ddaattaa
Sales revenue
Cost of sales (excluding D&A) (1)
Corporate, admin and other costs
Other income
EBITDA (1)
Depreciation & amortisation (D&A)
Net finance costs
Profit before tax
Income tax expense
Profit/(loss) after tax
Cashflow from operating activities
Cash and cash equivalents
Borrowings
Net cash/(debt)
Net assets
Basic earnings per share (cents per share)
22002233
$$‘‘000000
320,840
(146,429)
34
(12,520)
116611,,992255
(27,510)
(125,249)
99,,116666
(4,767)
44,,339999
152,560
106,471
(50,613)
55,858
256,537
1.18
22002222
$$‘‘000000
287,043
(118,975)
229
(14,363)
115533,,993344
(31,665)
(11,363)
111100,,990066
(21,423)
8899,,448833
134,657
61,502
(65,386)
(3,884)
247,535
24.27
CChhaannggee
$$’’000000
33,797
(27,454)
(195)
1,843
77,,999911
4,155
(113,886)
((110011,,774400))
16,656
((8855,,008844))
17,903
44,969
14,773
59,742
9,002
(23.09)
CChhaannggee
(13)
1,002
%%
12
23
(85)
(13)
55
((9922))
(78)
((9955))
13
73
(23)
4
(95)
(1,538)
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 $4.4 million for the full year to 30 June 2023, down from $89.5 million in the
previous year, primarily due to one‐off finance costs associated with the restructuring of gold forward contracts (see “Net
EBITDA increased 5% to $161.9 million for the full year to 30 June 2023 as higher gold sales revenue offset increases in
finance costs” below).
operating and overhead costs.
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPeerrffoorrmmaannccee ssuummmmaarryy
SSaalleess
Gold revenue for the financial year was $320.8 million from the sale of 120,320 ounces of gold at an average realised
price of $2,665 per ounce (2022: $287.0 million from 116,122 ounces at $2,471 per ounce).
During the year Capricorn delivered 16,947 ounces of gold into forward contracts at an average delivery price of $2,277
per ounce (2022: 35,053 at $2,247) and sold 103,373 ounces of gold at spot prices averaging $2,728 per ounce (2022:
81,069 ounces at $2,568).
As at 30 June 2023, Capricorn’s gold forwards hedging programme totalled 107,000 ounces of flat forward contracts at
an average delivery price of $2,327 per ounce.
The Company has no gold hedging delivery obligations until 30 September 2024.
CCoosstt ooff ssaalleess
Cost of sales, excluding depreciation and amortisation, for the year increased 23% to $146.4 million from the previous
year mainly due to increased mining volumes at the KGP and the effect of industry wide cost pressures.
NNeett ffiinnaannccee ccoossttss
Net finance costs have increased by $113.9 million to $125.2 million from the previous year due to the effect of
restructuring the Group’s gold forward contracts.
In June 2023, the Company announced that it had reduced its gold forward contracts by 51,000 ounces to provide further
exposure to any increase in the A$ gold price. The closure of the gold forwards means the Company does not have any
hedging delivery obligations until September 2024.
The cost of reducing the hedge book was $33.1 million in cash and an $83.2 million in non‐cash expense relating to the
recognition of the fair value of the remaining gold forward contracts through the profit and loss, as the Company is no
longer able to apply the “Own use” exemption to account for the remaining flat forward contracts.
The restructure of the gold forwards has led to a change in the accounting for the remaining gold forwards and are now
valued through the profit and loss. These contracts previously qualified as future inventory sales contracts with the sales
value recognised as revenue at the time of sale, also known as the “own use” exemption.
CCaasshhffllooww
Statutory operating cash flow for the year was $152.6 million which delivered a $45 million increase (to $106.5 million)
in cash and cash equivalents for the year. Key cash flow movements for the year included:
Net cash inflow from operations (excluding interest paid) of $158.8 million
Payments for the partial closure of the gold forwards hedge book and purchase of gold put options of $36.8
million
$35.6 million on exploration activities at KGP and MGGP
$15.0 million repayment of debt to Macquarie Bank Ltd
NNeett ccaasshh//((ddeebbtt))
The Company had net cash of $56m at the end of the financial year (2022: Net debt of $3.9m) an increase of $59.7m
from the prior year.
The Company had outstanding debt at the end of the financial year of $50 million (2022: $65 million) after repaying $15
million during the year. In July 2022, Macquarie Bank agreed to convert the $50 million outstanding debt to a general‐
purpose corporate loan facility with a single bullet repayment in June 2025.
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CAPRICORN METALS ANNUAL REPORT 2023
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27
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPrroojjeecctt ssuummmmaarryy
KKaarrllaawwiinnddaa GGoolldd PPrroojjeecctt
OOppeerraattiioonnss
Operating results for the 2023 financial year were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost (2)
Cash cost inc. royalties
All‐in‐sustaining‐cost (2)
UUnniitt
BCM (‘000)
BCM (‘000)
w:o
Tonnes (‘000)
Tonnes (‘000)
g/t
%
Ounces
A$/oz
A$/oz
A$/oz
3300 JJuunnee 22002233
3300 JJuunnee 22002222
2,443
10,129
4.15
5,807
4,219
0.96
93
120,014
$1,038
$1,186
$1,208
2,790
8,954
3.21
5,940
4,450
0.89
94
118,432
$952
$1,073
$1,112
2
Cash cost and all‐in sustaining costs (“AISC”) are non‐IFRS financial information and not subject to audit. These are comparable
measures commonly used in the mining industry and in particular the gold mining industry. The Company calculates cash costs
and AISC on a per ounce production basis.
KGP produced 120,014 ounces from its second year of operation achieving above the mid‐point of the annual production
guidance range of 115,000 – 125,000 ounces. All‐in‐sustaining‐costs (“AISC”) for the financial year was $1,208 per ounce
which was at the lower end of the AISC guidance range for the year of $1,160 ‐ $1,260 per ounce.
It was with great sadness that a significant incident occurred in October 2022 at the KGP that tragically claimed the life
of an employee of mining contractor MACA. The safety and wellbeing of all employees and contractors of the Company
remain our highest priority and our thoughts and condolences remain with the MACA employee’s family, friends and
colleagues.
A total of 12.6 million BCM of material was mined from the Bibra open pit during the year at a waste‐to‐ore strip ratio of
4.1. Mining focussed on delivering ore to the ROM primarily from Stage 3 of the open pit and mining waste to open up
ore zones in stage 2 and 3 of the open pit.
The processing plant performed well during the year with steady production and ongoing optimisation. Mill feed during
the year was initially a blend of laterite and oxide ore with a small proportion of transitional ore, leading into a combination
of fresh and transitional ore over the second half of the financial year.
Capricorn expects to continue its strong operational performance in FY24 with gold production guidance of 115,000 –
125,000 ounces at an AISC range of $1,270 ‐ $1,370 per ounce and growth capital of $10‐20 million.
EExxpplloorraattiioonn
Capricorn wholly owns a 2,052 square kilometre tenement package at KGP which includes the greenstone belt hosting
the Bibra gold deposit and other significant greenstone areas.
The Pilbara region of Western Australia has not had a significant historical exploration focus on gold and as a result very
little modern and meaningful gold exploration has been completed outside of the immediate Bibra deposit, the focus of
current mining operations.
During the year a total of 1,020 holes for 73,335 metres were drilled across the KGP tenement package.
Multiple near mine and regional exploration projects were advanced during the year focussing on areas situated proximal
to either the Nanjilgardy Fault or the Sylvania Inlier and Pilbara Craton margin (refer Figure 1 below). First pass drilling
programmes were completed at near mine targets including Muirfield, Carnoustie, Vedas and Berwick with encouraging
results received.
Follow up near mine drilling programmes will continue in FY24.
First pass regional drilling programmes are expected to commence in FY24 as areas were cleared for heritage in FY23.
Drilling is planned at Carrot Hill, Domomore, Jamie Well and Mumbakine Well in FY24.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
28
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CAPRICORN METALS ANNUAL REPORT 2023
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
PPrroojjeecctt ssuummmmaarryy
KKaarrllaawwiinnddaa GGoolldd PPrroojjeecctt
OOppeerraattiioonnss
Operating results for the 2023 financial year were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost (2)
Cash cost inc. royalties
All‐in‐sustaining‐cost (2)
UUnniitt
BCM (‘000)
BCM (‘000)
w:o
Tonnes (‘000)
Tonnes (‘000)
g/t
%
Ounces
A$/oz
A$/oz
A$/oz
3300 JJuunnee 22002233
3300 JJuunnee 22002222
2,443
10,129
4.15
5,807
4,219
0.96
93
120,014
$1,038
$1,186
$1,208
2,790
8,954
3.21
5,940
4,450
0.89
94
118,432
$952
$1,073
$1,112
2
Cash cost and all‐in sustaining costs (“AISC”) are non‐IFRS financial information and not subject to audit. These are comparable
measures commonly used in the mining industry and in particular the gold mining industry. The Company calculates cash costs
and AISC on a per ounce production basis.
KGP produced 120,014 ounces from its second year of operation achieving above the mid‐point of the annual production
guidance range of 115,000 – 125,000 ounces. All‐in‐sustaining‐costs (“AISC”) for the financial year was $1,208 per ounce
which was at the lower end of the AISC guidance range for the year of $1,160 ‐ $1,260 per ounce.
It was with great sadness that a significant incident occurred in October 2022 at the KGP that tragically claimed the life
of an employee of mining contractor MACA. The safety and wellbeing of all employees and contractors of the Company
remain our highest priority and our thoughts and condolences remain with the MACA employee’s family, friends and
colleagues.
A total of 12.6 million BCM of material was mined from the Bibra open pit during the year at a waste‐to‐ore strip ratio of
4.1. Mining focussed on delivering ore to the ROM primarily from Stage 3 of the open pit and mining waste to open up
ore zones in stage 2 and 3 of the open pit.
The processing plant performed well during the year with steady production and ongoing optimisation. Mill feed during
the year was initially a blend of laterite and oxide ore with a small proportion of transitional ore, leading into a combination
of fresh and transitional ore over the second half of the financial year.
Capricorn expects to continue its strong operational performance in FY24 with gold production guidance of 115,000 –
125,000 ounces at an AISC range of $1,270 ‐ $1,370 per ounce and growth capital of $10‐20 million.
EExxpplloorraattiioonn
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 1,020 holes for 73,335 metres were drilled across the KGP tenement package.
Multiple near mine and regional 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 1 below). First pass drilling
programmes were completed at near mine targets including Muirfield, Carnoustie, Vedas and Berwick with encouraging
results received.
Follow up near mine drilling programmes will continue in FY24.
First pass regional drilling programmes are expected to commence in FY24 as areas were cleared for heritage in FY23.
Drilling is planned at Carrot Hill, Domomore, Jamie Well and Mumbakine Well in FY24.
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
RReesseerrvveess && RReessoouurrcceess
In June 2023 the company announced an annual resource and reserve update for KGP.
The updated KGP Ore Reserve Estimate (“ORE”) of 1,247,000 ounces (2022: 1.34 million ounces) is an increase of 5,000
ounces after accounting for mining depletion in the nine months to 31 March 2023.
The updated Mineral Resource Estimate (“MRE”) is 2,228,000 ounces (2022: 2.29 million ounces) is an increase of 40,000
ounces after accounting for mining depletion in the nine months to 31 March 2023.
MMtt GGiibbssoonn GGoolldd PPrroojjeecctt
Figure 1: Karlawinda Gold Project exploration targets
In July 2021 Capricorn announced the acquisition of the MGGP located approximately 280 kilometres northeast of Perth
in the Mid‐West region of WA. At the time of acquisition the project had a JORC 2012 compliant Inferred MRE of 2,083,000
ounces of gold.
In April 2023 the Company announced a maiden ORE and the results of a prefeasibility study for the MGGP. The maiden
MGGP JORC 2012 compliant ORE is 48.7 million tonnes @ 0.9g/t Au for 1.45 million ounces. This ORE is based on a MRE
of 104.9 million tonnes @ 0.8g/t Au for 2.76 million ounces. The ORE was estimated using a A$1,900 per ounce gold price
with the reserve pits having a shallow average depth of 140 metres, down to a maximum depth of 240 metres and an
operating strip ratio of 4.2.
The maiden ORE was the culmination of an extensional and infill resource drilling programme that commenced in January
2022 and continued during the 2023 financial year. A total of 163,944 metres (1,078 holes) of RC drilling has been
completed at the project to date with results received indicating mineralisation remains open down dip and along strike
to the north and south.
Continued resource extension and near mine exploration drilling will continue in FY24 in parallel with permitting and
development work with a view to increasing reserves given the shallow depth of the reserve pits and significant untested
strike north of the current resources.
The results of the prefeasibility study completed indicate the MGGP as a robust, large scale open pit gold mine with gold
production averaging 152,000 ounces per annum over the project's first 7.5 years. Production is expected to be 1.34
million ounces over a 10‐year mine life with average annual production of 138,000 ounces per annum at AISC’s of $1,529
per ounce.
The project represents a strong economic proposition for the Company and is expected to generate over $1.5 billion in
operating cashflow over a 10 year mine life with revenues in excess of $3.6 billion at a forecast gold price of $2,750 per
ounce.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS ANNUAL REPORT 2023
Page | 8
29
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
On the basis of the strong Pre‐feasibility results the Board has given approval to:
Complete project optimisation to feasibility study level;
Complete remaining work streams to level required to support submission of relevant applications; and
Commence long lead purchasing where advantageous to do so.
MMaatteerriiaall bbuussiinneessss rriisskkss
The material business risks of the Company include:
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. This involves
forward contracts as well as call and put options.
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 (2022: Nil).
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
30
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CAPRICORN METALS ANNUAL REPORT 2023
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
On the basis of the strong Pre‐feasibility results the Board has given approval to:
Complete project optimisation to feasibility study level;
Complete remaining work streams to level required to support submission of relevant applications; and
Commence long lead purchasing where advantageous to do so.
MMaatteerriiaall bbuussiinneessss rriisskkss
The material business risks of the Company include:
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. This involves
forward contracts as well as call and put options.
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
DDiivviiddeennddss ppaaiidd oorr rreeccoommmmeennddeedd
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
SSuubbsseeqquueenntt eevveennttss
There were no material events arising subsequent to 30 June 2023, 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.
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 subjected from time to time to Government agency audits and site
inspections. The Company is not aware of any 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
22,172,000
6,615,385
3,611,539
74,550
NNuummbbeerr ooff
uunnqquuootteedd rriigghhttss
120,000
‐
‐
‐
At the date of this report, the Company had no unissued shares under listed and unlisted options.
SShhaarreess iissssuueedd oonn eexxeerrcciissee ooff ooppttiioonnss
The Company had no shares issued under options for the year.
PPeerrffoorrmmaannccee rriigghhttss
UUnniissssuueedd sshhaarreess
At the date of this report, the Company had the following unissued shares under unvested performance rights.
VVeessttiinngg ddaattee
30 September 2023
18 January 2024
29 March 2024
4 October 2023
10 December 2023
10 December 2024
4 October 2024
10 December 2025
NNuummbbeerr oouuttssttaannddiinngg
112,500
100,000
100,000
259,909
525,000
645,707
139,909
80,707
Other than as set out below and elsewhere in the report, there were no significant changes in the state of affairs.
No dividends were paid or recommended to be paid during the financial year (2022: Nil).
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.
Page | 9
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 10
31
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
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 2023 (2022: 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 2023 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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
32
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CAPRICORN METALS ANNUAL REPORT 2023
DDiirreeccttoorrss’’ rreeppoorrtt (Continued)
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 2023 (2022: 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 2023 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.
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd))
This remuneration report for the year ended 30 June 2023 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 2023 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 FY23 total remuneration packages split between the fixed and variable remuneration
for the executives is shown below:
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 11
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 12
33
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
MARK CLARK
55%
28%
PAUL THOMAS
57%
15%
28%
17%
27%
KIM MASSEY
57%
16%
Fixed remuneration
Short term incentives
Long term incentives
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.
At the end of the 2023 financial year, executive annual base salaries were:
Mark Clark
Paul Thomas
Kim Massey
SShhoorrtt tteerrmm iinncceennttiivveess
$900,000
$700,000
$600,000
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 FY23
was 40% of the fixed remuneration of the executive.
Each year the RNDC set KPI targets for executives. For FY23 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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
34
Page | 13
CAPRICORN METALS ANNUAL REPORT 2023
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
A summary of the KPI targets set for FY23 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%
100%
15%
Company performance 25%
TSR performance against comparator group
100%
Total
100%
25%
70%
In assessing the achievement of the KPI’s the Committee made the following assessments:
Production – annual gold production of 120,014 ounces was in line with FY23 budgeted production and the base reward
of 15% was awarded;
Costs – AISC’s of $1,208 per ounce achieved was in line with FY23 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. The performance was
impacted by a fatality at Karlawinda in October 2022, and subsequently, the metric was not achieved.
Reserve growth – The Company’s reserves increased by 66% with the addition of the Mt Gibson maiden reserve. The stretch
target was achieved and a 15% weighting was awarded.
Company performance – The Company achieved a total shareholder return of 29% for the 12 months to 30 June 2023
which was at the upper end of the comparator group. Accordingly, the stretch target was achieved and a 25% weighting
was awarded.
Based on the above assessment, 70% of the target opportunity of 40% of fixed remuneration was achieved with the
following STI payments made to executives for FY23:
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.
At the end of the 2023 financial year, executive annual base salaries were:
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
70%
70%
70%
28% of TFR
28% of TFR
28% of TFR
$252,000
$196,000
$168,000
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 2023 financial year, under the Performance Rights Plan, the number of rights granted to executives range from
50% to 70% 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 FY23 were subject to one performance hurdle being total shareholder return (“TSR”)
measured against a benchmark peer group.
Page | 13
CAPRICORN METALS ANNUAL REPORT 2023
Page | 14
35
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
MARK CLARK
55%
PAUL THOMAS
57%
28%
15%
KIM MASSEY
57%
Fixed remuneration
Short term incentives
Long term incentives
28%
17%
27%
16%
EElleemmeennttss ooff RReemmuunneerraattiioonn
FFiixxeedd rreemmuunneerraattiioonn
Mark Clark
Paul Thomas
Kim Massey
SShhoorrtt tteerrmm iinncceennttiivveess
$900,000
$700,000
$600,000
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 FY23
was 40% of the fixed remuneration of the executive.
Each year the RNDC set KPI targets for executives. For FY23 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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
The following companies were identified by Capricorn to comprise the peer group for LTI purposes from 1 July 2022:
Regis Resources Limited
Silver Lake Resources Ltd
Westgold Resources Limited
OceanaGold Corporation
Perseus Mining Limited
Gold Road Resources Limited
PPeeeerr GGrroouupp
Dacian Gold Limited
St Barbara Limited
Pantoro Limited
Red 5 Limited
Aurelia Metals Limited
Alkane Resources Limited
Evolution Mining Limited
Northern Star Resources Limited
De Grey Mining Limited
Bellevue Gold Limited
Resolute Mining 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 2022 and ending on 30 June 2024
(Tranche 1); and
The other 50% of the performance rights is the 36‐month period commencing on 1 July 2022 and ending on 30 June
2025 (Tranche 2).
The following executives were awarded LTI’s during the reporting period:
EExxeeccuuttiivvee
Mark Clark
Paul Thomas
Kim Massey
MMaaxxiimmuumm LLTTII
OOppppoorrttuunniittyy
NNuummbbeerr ooff ppeerrffoorrmmaannccee rriigghhttss
ggrraanntteedd dduurriinngg FFYY2233
70%
60%
50%
161,414
127,712
88,688
Shareholders approved the issue of performance rights to Mr Clark at the Company AGM in November 2022.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
36
Page | 15
CAPRICORN METALS ANNUAL REPORT 2023
The following companies were identified by Capricorn to comprise the peer group for LTI purposes from 1 July 2022:
Regis Resources Limited
Silver Lake Resources Ltd
Westgold Resources Limited
OceanaGold Corporation
Perseus Mining Limited
Gold Road Resources Limited
PPeeeerr GGrroouupp
Dacian Gold Limited
St Barbara Limited
Pantoro Limited
De Grey Mining Limited
Bellevue Gold Limited
Evolution Mining Limited
Northern Star Resources Limited
Red 5 Limited
Aurelia Metals Limited
Alkane Resources Limited
Resolute Mining 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:
Between the 50th and 75th percentile
Pro‐rata between 50% and 100%
0%
50%
100%
50% of the performance rights is the 24‐month period commencing on 1 July 2022 and ending on 30 June 2024
The other 50% of the performance rights is the 36‐month period commencing on 1 July 2022 and ending on 30 June
The following executives were awarded LTI’s during the reporting period:
Below the 50th percentile
At the 50th percentile
At and above the 75th percentile
The measurement period for:
(Tranche 1); and
2025 (Tranche 2).
EExxeeccuuttiivvee
Mark Clark
Paul Thomas
Kim Massey
MMaaxxiimmuumm LLTTII
OOppppoorrttuunniittyy
NNuummbbeerr ooff ppeerrffoorrmmaannccee rriigghhttss
ggrraanntteedd dduurriinngg FFYY2233
70%
60%
50%
161,414
127,712
88,688
Shareholders approved the issue of performance rights to Mr Clark at the Company AGM in November 2022.
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd)) (Continued)
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
TSR
TSR
120,000 24/11/2021
$2.042
4/10/2022
100%
120,000 24/11/2021
$2.042
4/10/2023
80,707 29/11/2022
$3.197 30/06/2024
80,707 29/11/2022
$3.297 30/06/2025
0%
0%
0%
K Massey
3 yrs service
1,000,000 17/12/2019
$1.180
17/9/2022
100%
TSR
TSR
TSR
TSR
57,340
4/10/2021
$1.780
30/6/2023
57,340
4/10/2021
$1.872
30/6/2024
44,344
19/6/2023
$2.562
30/6/2024
44,344
19/6/2023
$2.867
30/6/2025
0%
0%
0%
0%
RReellaattiivvee TTSSRR ffoorr MMeeaassuurreemmeenntt PPeerriioodd
PPrrooppoorrttiioonn ooff PPeerrffoorrmmaannccee RRiigghhttss tthhaatt wwiillll vveesstt
P Thomas
3 yrs service
1,000,000 17/12/2019
$1.180
17/9/2022
100%
TSR
TSR
TSR
TSR
82,569
4/10/2021
$1.780
30/6/2023
82,569
4/10/2021
$1.872
30/6/2024
63,856
19/6/2023
$2.562
30/6/2024
63,856
19/6/2023
$2.867
30/6/2025
0%
0%
0%
0%
22,,889977,,663322
0%
0%
0%
0%
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 $1,111,529. This amount is allocated to remuneration over the vesting period (i.e. in
years 1 July 2022 to 30 June 2025).
The total performance rights expense recognised for KMP during the year is $1,050,100.
There were 2,000,000 performance rights with a grant date 17 December 2019 that vested and were exercised during
the year. There were 120,000 performance rights with a grant date 24 November 2021 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.
In relation to the performance rights issued on 29 November 2022 50% of the rights have a performance period of two
years which ends on 30 June 2024 and the remaining balance ends on 30 June 2025.
In relation to the performance rights issued on 19 June 2023 50% of the rights have a performance period of two years
which ends on 30 June 2024 and the remaining balance ends on 30 June 2025.
OOppttiioonnss
There were no options granted to KMP’s during the current year.
There were no movements in options during the year.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 15
CAPRICORN METALS ANNUAL REPORT 2023
Page | 16
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CAPRICORN METALS ANNUAL REPORT 2023
RReemmuunneerraattiioonn rreeppoorrtt ((AAuuddiitteedd))
NNoonn‐‐eexxeeccuuttiivvee ddiirreeccttoorrss
Total remuneration for all Non‐Executive Directors, last voted upon by shareholders at the 2022 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 is $120,000 per annum excluding superannuation. 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 2023.
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
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Nil
Nil
2 months
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n/a
n/a
6 months
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Nil
3 months
1 month
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3 months
12 months
6 months
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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
CAPRICORN METALS ANNUAL REPORT 2023
Page | 18
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1
(
CAPRICORN METALS ANNUAL REPORT 2023
41
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 22002222
IIssssuueedd oonn eexxeerrcciissee
ooff ooppttiioonnss//rriigghhttss
NNeett cchhaannggee
ootthheerr*
HHeelldd aass aatt
3300 JJuunnee 22002233
6,615,385
3,611,539
74,550
‐
‐
‐
22,052,000
120,000
‐
‐
‐
‐
6,615,385
3,611,539
74,550
22,172,000
2,153,847
3,400,000
3377,,990077,,332211
1,000,000
1,000,000
22,,112200,,000000
(600,000)
(1,400,000)
((22,,000000,,000000))
2,553,847
3,000,000
3388,,002277,,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
Capricorn aims to align our executive remuneration to our strategic and business objectives and the creation of
shareholder wealth. The table below shows measures of the Group’s financial performance over the last five years as
required by the Corporations Act 2001. However, these are not necessarily consistent with the measures used in
determining the variable amounts of remuneration to be awarded to KMPs, as discussed above. As a consequence, there
may not always be a direct correlation between the statutory key performance measures and the variable remuneration
awarded.
Revenue
Net profit/(loss) after tax
Share price at year‐end
Dividends paid
Basic earnings per share
Net assets
22001199
$$’’000000
207
(23,817)
0.089
‐
(15.19)
23,817
RReessttaatteedd
22002200
$$’’000000
122
(17,947)
1.795(1)
‐
(4.30)
95,508
22002211
$$’’000000
110
(4,765)
1.900
‐
(1.39)
130,460
22002222
$$’’000000
287,043
89,483
3.130
‐
24.27
247,535
22002233
$$’’000000
320,840
4,399
4.03
‐
1.18
256,537
(1) A share consolidation of one for every five shares was approved by shareholders in November 2019.
42
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 21
CAPRICORN METALS ANNUAL REPORT 2023
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:
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
7 September 2023
NNoonn‐‐EExxeeccuuttiivvee DDiirreeccttoorrss
M Okeby
M Ertzen
B De Araugo
EExxeeccuuttiivvee DDiirreeccttoorrss
M Clark
OOtthheerr EExxeeccuuttiivveess
K Massey
P Thomas
*
HHeelldd aass aatt
IIssssuueedd oonn eexxeerrcciissee
11 JJuullyy 22002222
ooff ooppttiioonnss//rriigghhttss
NNeett cchhaannggee
ootthheerr*
HHeelldd aass aatt
3300 JJuunnee 22002233
6,615,385
3,611,539
74,550
‐
‐
‐
6,615,385
3,611,539
74,550
22,052,000
120,000
22,172,000
‐
‐
‐
‐
2,153,847
3,400,000
3377,,990077,,332211
1,000,000
1,000,000
22,,112200,,000000
(600,000)
(1,400,000)
((22,,000000,,000000))
2,553,847
3,000,000
3388,,002277,,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
Capricorn aims to align our executive remuneration to our strategic and business objectives and the creation of
shareholder wealth. The table below shows measures of the Group’s financial performance over the last five years as
required by the Corporations Act 2001. However, these are not necessarily consistent with the measures used in
determining the variable amounts of remuneration to be awarded to KMPs, as discussed above. As a consequence, there
may not always be a direct correlation between the statutory key performance measures and the variable remuneration
awarded.
Revenue
Net profit/(loss) after tax
Share price at year‐end
Dividends paid
Basic earnings per share
Net assets
22001199
$$’’000000
207
(23,817)
0.089
‐
(15.19)
23,817
RReessttaatteedd
22002200
$$’’000000
122
(17,947)
1.795(1)
‐
(4.30)
95,508
22002211
$$’’000000
110
(4,765)
1.900
‐
(1.39)
130,460
22002222
$$’’000000
287,043
89,483
3.130
‐
24.27
247,535
22002233
$$’’000000
320,840
4,399
4.03
‐
1.18
256,537
(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
Page | 21
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 22
43
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 2023 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
7 September 2023
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.
44
Page I 23
CAPRICORN METALS ANNUAL REPORT 2023
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff pprrooffiitt oorr lloossss aanndd ootthheerr ccoommpprreehheennssiivvee iinnccoommee
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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 2023 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.
Revenue
Cost of goods sold
GGrroossss pprrooffiitt
Other income
Personnel costs
Share‐based payment expense
Depreciation
Amortisation
Administrative expense
Exploration and evaluation expenditure
Net finance costs
PPrrooffiitt bbeeffoorree iinnccoommee ttaaxx eexxppeennssee
Income tax expense
KPMG
R Gambitta
Partner
Perth
7 September 2023
PPrrooffiitt 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 ffoorr tthhee yyeeaarr aattttrriibbuuttaabbllee ttoo mmeemmbbeerrss ooff tthhee ppaarreenntt
eennttiittyy
NNoottee
2
3
2
3
29
3
3
4
6
22002233
$$’’000000
320,840
(171,570)
149,270
22002222
$$’’000000
287,043
(149,480)
137,563
34
229
(5,175)
(4,712)
(341)
(2,028)
(2,567)
(66)
(125,249)
99,,116666
(4,767)
44,,339999
(7,217)
(4,893)
(225)
(935)
(1,680)
(233)
(11,703)
111100,,990066
(21,423)
8899,,448833
(7)
((77))
(196)
((119966))
44,,339922
8899,,228877
EEaarrnniinnggss ppeerr sshhaarree::
Basic profit/(loss) per share (cents per share)
Diluted profit/(loss) per share (cents per share)
5
5
1.18
1.17
24.27
23.91
The accompanying notes form part of these financial statements
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.
Page I 23
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 24
45
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCuurrrreenntt aasssseettss
Cash and cash equivalents
Receivables
Other assets
Inventories
Other financial assets
Assets classified as held for sale
TToottaall ccuurrrreenntt aasssseettss
NNoonn‐‐ccuurrrreenntt aasssseettss
Inventories
Other 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
Other financial liabilities
Deferred tax liabilities
TToottaall nnoonn‐‐ccuurrrreenntt lliiaabbiilliittiieess
TToottaall lliiaabbiilliittiieess
NNeett aasssseettss
EEqquuiittyy
Issued capital
Reserves
Retained earnings
TToottaall eeqquuiittyy
NNoottee
7
8
9
10
11
9
10
12
13
14
15
16
18
19
20
21
19
20
21
22
23
24
25
26
22002233
$$’’000000
106,471
2,535
356
16,619
3,517
2,500
113311,,999988
47,546
2,790
153,302
45,364
105,723
‐
49,762
440044,,448877
22002222
$$’’000000
61,502
2,235
295
14,913
3,099
2,500
8844,,554444
29,883
3,067
159,121
47,972
77,297
‐
46,628
336633,,996688
553366,,448855
444488,,551122
33,226
9,428
613
1,457
4444,,772244
31,769
50,000
30,452
97,103
25,900
27,407
7,613
38,386
1,087
7744,,449933
37,822
27,000
29,226
11,540
20,896
223355,,222244
112266,,448844
227799,,994488
220000,,997777
225566,,553377
224477,,553355
203,422
3,134
49,981
225566,,553377
203,524
6,101
37,910
224477,,553355
The accompanying notes form part of these financial statements
46
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 25
CAPRICORN METALS ANNUAL REPORT 2023
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCuurrrreenntt aasssseettss
Cash and cash equivalents
Receivables
Other assets
Inventories
Other financial assets
Assets classified as held for sale
TToottaall ccuurrrreenntt aasssseettss
NNoonn‐‐ccuurrrreenntt aasssseettss
Inventories
Other 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
Other financial liabilities
Deferred tax liabilities
TToottaall nnoonn‐‐ccuurrrreenntt lliiaabbiilliittiieess
TToottaall lliiaabbiilliittiieess
NNeett aasssseettss
EEqquuiittyy
Issued capital
Reserves
Retained earnings
TToottaall eeqquuiittyy
NNoottee
7
8
9
10
11
9
10
12
13
14
15
16
18
19
20
21
19
20
21
22
23
24
25
26
22002233
$$’’000000
106,471
2,535
356
16,619
3,517
2,500
113311,,999988
47,546
2,790
153,302
45,364
105,723
‐
49,762
440044,,448877
33,226
9,428
613
1,457
4444,,772244
31,769
50,000
30,452
97,103
25,900
22002222
$$’’000000
61,502
2,235
295
14,913
3,099
2,500
8844,,554444
29,883
3,067
159,121
47,972
77,297
‐
46,628
336633,,996688
27,407
7,613
38,386
1,087
7744,,449933
37,822
27,000
29,226
11,540
20,896
553366,,448855
444488,,551122
223355,,222244
112266,,448844
227799,,994488
220000,,997777
225566,,553377
224477,,553355
203,422
3,134
49,981
225566,,553377
203,524
6,101
37,910
224477,,553355
The accompanying notes form part of these financial statements
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CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 25
CAPRICORN METALS ANNUAL REPORT 2023
47
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ccaasshh fflloowwss
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCaasshh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
Receipts from gold sales
Payments to suppliers and employees
Interest received
Interest paid
Other income
NNoottee
NNeett ccaasshh ffrroomm ooppeerraattiinngg aaccttiivviittiieess
7
CCaasshh fflloowwss ffrroomm iinnvveessttiinngg aaccttiivviittiieess
Payments for property, plant and equipment
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 exercise of share options
Transaction costs from issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Payments for gold put options
Payments for gold forward contracts
NNeett ccaasshh fflloowwss uusseedd iinn ffiinnaanncciinngg aaccttiivviittiieess
NNeett iinnccrreeaassee 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
7
7
22002233
$$’’000000
320,747
(164,124)
2,028
(6,218)
127
115522,,556600
(11,474)
(35,606)
(23)
(200)
‐
((4477,,330033))
‐
135
‐
(15,000)
(8,644)
(3,674)
(33,105)
((6600,,228888))
22002222
$$’’000000
286,948
(146,390)
28
(5,966)
37
113344,,665577
(5,777)
(18,437)
(26,548)
(26,744)
187
((7777,,331199))
6,000
(42)
20,000
(25,000)
(7,424)
‐
‐‐
((66,,446666))
4444,,996699
5511,,119900
61,502
‐
110066,,447711
10,312
‐
6611,,550022
The accompanying notes form part of these financial statements
48
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 27
CAPRICORN METALS ANNUAL REPORT 2023
NNeett ccaasshh ffrroomm ooppeerraattiinngg aaccttiivviittiieess
7
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ccaasshh fflloowwss
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCaasshh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
Receipts from gold sales
Payments to suppliers and employees
Interest received
Interest paid
Other income
CCaasshh fflloowwss ffrroomm iinnvveessttiinngg aaccttiivviittiieess
Payments for property, plant and equipment
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 exercise of share options
Transaction costs from issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Payments for gold put options
Payments for gold forward contracts
NNeett ccaasshh fflloowwss uusseedd iinn ffiinnaanncciinngg aaccttiivviittiieess
NNoottee
22002233
$$’’000000
320,747
(164,124)
2,028
(6,218)
127
115522,,556600
‐
‐
‐
(11,474)
(35,606)
(23)
(200)
((4477,,330033))
135
(15,000)
(8,644)
(3,674)
(33,105)
((6600,,228888))
61,502
‐
110066,,447711
22002222
$$’’000000
286,948
(146,390)
(5,966)
28
37
113344,,665577
(5,777)
(18,437)
(26,548)
(26,744)
187
((7777,,331199))
6,000
(42)
20,000
(25,000)
(7,424)
‐
‐‐
((66,,446666))
10,312
‐
6611,,550022
NNeett iinnccrreeaassee iinn ccaasshh hheelldd
4444,,996699
5511,,119900
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
7
7
The accompanying notes form part of these financial statements
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
BBaassiiss ooff pprreeppaarraattiioonn
PPeerrffoorrmmaannccee ffoorr tthhee yyeeaarr
1.
2.
3.
4.
5.
6.
7.
Segment information
Revenue & other income
Expenses
Net finance costs
Earnings per share
Income tax
Cash and cash equivalents
AAsssseettss
Receivables
Inventories
Other financial assets
Assets held for sale
Plant and equipment
Right of use assets
Deferred exploration and evaluation costs
8.
9.
10.
11.
12.
13.
14.
15. Mine properties under development
16. Mine properties
17.
Impairment of non‐financial assets
LLiiaabbiilliittiieess
18.
19.
20.
21.
22.
23.
Trade and other payables
Lease liabilities
Borrowings
Provisions
Other financial liabilities
Deferred tax liabilities
EEqquuiittyy
24.
25.
26.
RRiisskk
27.
28.
Issued capital
Reserves
Retained earnings
Financial risk management
Capital management
OOtthheerr DDiisscclloossuurreess
29.
30.
31.
32.
33.
34.
35.
36.
37.
Share‐based payments
Related parties
Parent entity disclosures
Deed of cross guarantee
Commitments
Contingencies
Auditors’ remuneration
Subsequent events
New accounting standards and interpretations issued but not yet effective
PPaaggee
29
50
30
31
32
34
34
35
36
51
52
53
55
55
56
57
36
37
37
39
40
41
42
43
43
44
57
58
58
60
61
62
63
64
64
65
44
45
46
46
48
49
65
66
67
67
69
70
51
52
52
72
73
73
53
56
74
77
56
61
62
63
63
63
63
63
63
77
82
83
84
84
84
84
84
84
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 27
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
49
Page | 28
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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 3, 40 Kings Park Road
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 7 September 2023.
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 30.
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.
50
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 29
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
BBAASSIISS OOFF PPRREEPPAARRAATTIIOONN
KKeeyy eessttiimmaattee aanndd jjuuddggeemmeennttss
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:
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 9
Note 14
Note 17
Note 21
Note 22
Note 23
Note 29
Expenses
Inventories
Deferred exploration and evaluation costs
Impairment
Provisions
Other Financial Liabilities
Deferred tax liabilities
Share‐based payments
Page 32
Page 53
Page 37
Page 58
Page 42
Page 63
Page 44
Page 65
Page 46
Page 67
Page 48
Page 69
Page 49
Page 70
Page 56
Page 77
International Financial Reporting Standards adopted by the International Standards Board;
NNeeww ssttaannddaarrddss aanndd iinntteerrpprreettaattiioonnss aaddoopptteedd
The Group has adopted AASB 9 Financial Instruments: from 1 July 2022. Under the amendments, the Group recognises
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.
The Group has adopted AASB 137 Provisions, Contingent Liabilities and Contingent Assets from 1 July 2022. Under the
amendments, the Group recognises that 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.
The adoption of the new standards and interpretations have not had a material impact on the financial performance of
the Company.
NNeeww ssttaannddaarrddss aanndd iinntteerrpprreettaattiioonnss iissssuueedd bbuutt nnoott yyeett eeffffeeccttiivvee
Refer to Note 37
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
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
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.
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
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 29
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 30
51
Level 3, 40 Kings Park Road
WEST PERTH WA 6005
Report.
The nature of the operations and principal activities of the Company and its subsidiaries are described in the Directors
The consolidated financial statements were authorised for issue by the Board of Directors on 7 September 2023.
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
have been prepared on a historical cost basis except for assets and liabilities and share based payments which are
are presented in Australian dollars with all values rounded to the nearest thousand ($’000) unless otherwise stated in
required to be measured at fair value;
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 30.
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.
or loss and other comprehensive income.
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
KKaarrllaawwiinnddaa
MMtt GGiibbssoonn
UUnnaallllooccaatteedd
TToottaall
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
RReevveennuuee
Revenue
320,747
286,948
Other income
‐
‐
332200,,774477
228866,,994488
‐‐
‐‐
‐‐
‐‐
187
118877
93
34
112277
95
42
320,840
287,043
34
229
113377
332200,,887744
228877,,227722
RReessuulltt
Profit/(loss)
before income tax
22,270
Net finance costs
(125,237)
Depreciation
Amortisation
(21,274)
(5,911)
AAsssseettss//LLiiaabbiilliittiieess
124,125
(11,363)
(24,828)
(6,623)
(35)
7
(49)
‐
99
(13,069)
(13,318)
9,166
110,906
‐
‐
‐
(19)
(335)
‐
‐
(125,249)
(11,703)
(214)
(21,658)
(25,042)
‐
(5,911)
(6,623)
Segment assets
433,908
373,901
93,441
66,291
9,136
8,320
536,485
448,512
Segment liabilities
(240,421)
(162,946)
(11,752)
(13,054)
(27,775)
(24,977)
(279,948)
(200,977)
22..
RREEVVEENNUUEE AANNDD OOTTHHEERR IINNCCOOMMEE
AAccccoouunnttiinngg ppoolliicciieess
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.
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.
52
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 31
CAPRICORN METALS ANNUAL REPORT 2023
KKaarrllaawwiinnddaa
MMtt GGiibbssoonn
UUnnaallllooccaatteedd
TToottaall
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
3300 JJuunn
22002222
$$’’000000
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
3300 JJuunn
22002233
$$’’000000
3300 JJuunn
22002222
$$’’000000
RReevveennuuee
Revenue
Other income
‐
‐
320,747
286,948
332200,,774477
228866,,994488
‐‐
‐‐
‐‐
‐‐
187
118877
93
34
112277
95
42
320,840
287,043
34
229
113377
332200,,887744
228877,,227722
RReessuulltt
Profit/(loss)
before income tax
22,270
Net finance costs
(125,237)
Depreciation
Amortisation
(21,274)
(5,911)
124,125
(11,363)
(24,828)
(6,623)
(35)
(49)
7
‐
AAsssseettss//LLiiaabbiilliittiieess
‐
‐
‐
(19)
(335)
‐
‐
(125,249)
(11,703)
(214)
(21,658)
(25,042)
‐
(5,911)
(6,623)
Segment assets
433,908
373,901
93,441
66,291
9,136
8,320
536,485
448,512
Segment liabilities
(240,421)
(162,946)
(11,752)
(13,054)
(27,775)
(24,977)
(279,948)
(200,977)
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
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
22..
RREEVVEENNUUEE AANNDD OOTTHHEERR IINNCCOOMMEE
AAccccoouunnttiinngg ppoolliicciieess
GGoolldd SSaalleess
delivery into the sales contract.
IInntteerreesstt
assets.
RReennttaall IInnccoommee
return on the property.
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
complied with and that the grant will be received.
Government grants are recognised when there is reasonable assurance that conditions attached to the grant will be
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
RReevveennuuee aanndd ootthheerr iinnccoommee
RReevveennuuee
Gold sales
Rental income
OOtthheerr iinnccoommee
Other
Profit on sale of property, plant and equipment
22002233
$$’’000000
22002222
$$’’000000
320,747
286,948
93
95
332200,,884400
228877,,004433
34
‐
3344
42
187
222299
99
(13,069)
(13,318)
9,166
110,906
GGoolldd ffoorrwwaarrdd ccoonnttrraaccttss
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.
In June 2023 the Company announced that it had cash settled 51,000 ounces of gold forward contracts it held,
consequently in accordance with accounting standards the remaining gold forwards are now recognised in the balance
sheet at fair value (refer Note 22). Previously the gold forward contracts had only been settled via the physical delivery
of gold which did not require the gold forwards to be recognised at fair value on the balance sheet. The gold forward
contracts were treated as sale contracts with revenue recognised once gold has been delivered to Macquarie or its agent.
Set out below is the settlement timeframe for the remaining gold forward contracts as at 30 June 2023.
BBeettwweeeenn oonnee aanndd ffiivvee yyeeaarrss
‐ Fixed forward contracts
GGoolldd ffoorr pphhyyssiiccaall
ddeelliivveerryy
AAvveerraaggee
CCoonnttrraacctteedd
ggoolldd ssaallee pprriiccee
VVaalluuee ooff
ccoommmmiitttteedd ssaalleess
oouunncceess
$$
$$’’000000
MMaarrkk‐‐ttoo‐‐
mmaarrkkeett
$$’’000000
107,000
2,327
248,989
(83,177)
The average contracted sales price is rounded to the nearest dollar. Mark‐to‐market has been calculated using the
average forward price per ounce of $2,885 (2022: $2,726). 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.
Rental income is recognised on a straight‐line basis over the period of the lease term so as to reflect a constant periodic
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.
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 31
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 32
53
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
EExxppeennsseess
CCoossttss ooff ggooooddss ssoolldd
Cash costs of production
Royalties
Depreciation of mine plant and equipment
Amortisation of mine properties (refer Note 16)
PPeerrssoonnnneell ccoossttss
Salaries and wages
Defined contribution superannuation
Employee bonuses
Other employee benefits expense
Less: Amounts capitalised
Less: Amounts included in cost of goods sold
DDeepprreecciiaattiioonn
Plant and equipment depreciation (refer to Note 12)
Right of use asset depreciation (refer to Note 13)
Less: Amounts capitalised
Less: Amounts included in cost of goods sold
AAmmoorrttiissaattiioonn
Mine properties amortisation (refer note 16)
Financial asset amortisation (refer note 10)
Less: Amounts included in cost of goods sold
54
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002233
$$’’000000
22002222
$$’’000000
(128,749)
(105,399)
(17,680)
(21,258)
(3,883)
(13,576)
(24,817)
(5,688)
((117711,,557700))
((114499,,448800))
(20,658)
(1,945)
‐
(2,131)
4,290
15,269
((55,,117755))
(14,757)
(6,901)
59
21,258
((334411))
(3,883)
(2,028)
3,883
((22,,002288))
(16,520)
(1,607)
(1,404)
(2,384)
2,120
12,578
((77,,221177))
(18,827)
(6,144)
(71)
24,817
((222255))
(5,688)
(935)
5,688
((993355))
Page | 33
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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:
44.. NNEETT FFIINNAANNCCEE CCOOSSTTSS
AAccccoouunnttiinngg ppoolliicciieess
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
BBoorrrroowwiinngg ccoossttss
Mine properties are amortised on a unit‐of‐production bases over the run of mine ore included in the life of mine plan.
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.
EExxppeennsseess
CCoossttss ooff ggooooddss ssoolldd
Cash costs of production
Royalties
Depreciation of mine plant and equipment
Amortisation of mine properties (refer Note 16)
PPeerrssoonnnneell ccoossttss
Salaries and wages
Defined contribution superannuation
Employee bonuses
Other employee benefits expense
Less: Amounts capitalised
Less: Amounts included in cost of goods sold
DDeepprreecciiaattiioonn
Plant and equipment depreciation (refer to Note 12)
Right of use asset depreciation (refer to Note 13)
Less: Amounts capitalised
Less: Amounts included in cost of goods sold
AAmmoorrttiissaattiioonn
Mine properties amortisation (refer note 16)
Financial asset amortisation (refer note 10)
Less: Amounts included in cost of goods sold
22002233
$$’’000000
22002222
$$’’000000
(128,749)
(105,399)
((117711,,557700))
((114499,,448800))
(17,680)
(21,258)
(3,883)
(20,658)
(1,945)
‐
(2,131)
4,290
15,269
((55,,117755))
(14,757)
(6,901)
59
21,258
((334411))
(3,883)
(2,028)
3,883
((22,,002288))
(13,576)
(24,817)
(5,688)
(16,520)
(1,607)
(1,404)
(2,384)
2,120
12,578
((77,,221177))
(18,827)
(6,144)
(71)
24,817
((222255))
(5,688)
(935)
5,688
((993355))
BBoorrrroowwiinngg ccoossttss
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs have been expensed in the period in which they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds.
NNeett ffiinnaannccee ccoossttss
Interest revenue
Interest on borrowings
Interest on lease liabilities (refer to Note 19)
Unwinding of discount on provisions (refer Note 21)
Fair value loss on equity investments (refer Note 10)
Fair value loss on gold put options (refer Note 10)
Fair value loss on gold call options (refer Note 22)
Fair value loss on gold forwards (1) (refer Note 22)
Cost of gold forwards (2)
22002233
$$’’000000
2,287
(3,127)
(3,318)
(718)
(595)
(1,110)
(2,386)
(83,177)
(33,105)
22002222
$$’’000000
54
(2,841)
(3,441)
(677)
(340)
‐
(4,458)
‐
‐
((112255,,224499))
((1111,,770033))
(1) Fair value loss on gold forwards represents the non‐cash cost of fair valuing the remaining gold forwards held by the Company at
year end. The initial recognition of the gold forwards at fair value during the year was required due to the company no longer being
able to apply on the “own use” exemption in AASB 9 Financial instruments.
(2) Cost of gold forwards represents the settlement of 51,000 ounces of gold forward contracts held by the Company in cash as
announced on 26 June 2023.
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.
55..
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.
EEaarrnniinnggss ppeerr sshhaarree
Basic earnings per share (BEPS)
Diluted earnings per share (DEPS)
22002233
CCeennttss
11..1188
11..1177
22002222
CCeennttss
2244..2277
2233..9911
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 33
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 34
55
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
EEaarrnniinnggss uusseedd iinn ccaallccuullaattiinngg BBEEPPSS aanndd DDEEPPSS
Profit attributable to members of the parent entity
22002233
$$’’000000
22002222
$$’’000000
4,399
89,483
22002233
NNuummbbeerr
22002222
NNuummbbeerr
WWeeiigghhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess
Weighted average number of ordinary shares used to calculate BEPS
373,757,298
368,756,565
AAddjjuussttmmeennttss ffoorr ccaallccuullaattiioonn ooff DDEEPPSS::
Performance rights
1,963,732
5,440,818
Weighted average number of ordinary shares used to calculate DEPS
375,721,030
374,197,383
There have been no transactions involving ordinary shares between the reporting date and the date of completion of
these financial statements which would impact the above calculations.
66..
IINNCCOOMMEE TTAAXX
AAccccoouunnttiinngg ppoolliiccyy
The charge for current income tax expense is based on the profit for the year adjusted for any non‐assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the reporting
date.
AAmmoouunnttss rreeccooggnniisseedd iinn pprrooffiitt aanndd lloossss
((aa)) TTaaxx eexxppeennssee
Current tax
Deferred tax
Total tax expense for the period
((bb)) NNuummeerriiccaall rreeccoonncciilliiaattiioonn bbeettwweeeenn ttaaxx eexxppeennssee aanndd pprree‐‐ttaaxx nneett pprrooffiitt oorr ((lloossss))
Net profit before tax
Corporate tax rate applicable
Income tax expense on above at applicable corporate rate
IInnccrreeaassee//((ddeeccrreeaassee)) iinnccoommee ttaaxx dduuee ttoo ttaaxx eeffffeecctt ooff::
Non‐deductible expenses
Current year tax losses not recognised
Non assessable income
Movement in unrecognised temporary differences
Recognition of previously unrecognised prior year tax losses
Deductible equity raising costs
Income tax expense attributable to entity
((cc)) AAmmoouunnttss cchhaarrggeedd oorr ((ccrreeddiitteedd)) ddiirreeccttllyy ttoo eeqquuiittyy
Relating to equity raising costs
Other
56
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002233
$$’’000000
‐
4,767
44,,776677
9,166
30%
2,750
1,425
‐
‐
829
‐
(237)
44,,776677
237
‐
223377
22002222
$$’’000000
‐
21,423
2211,,442233
110,906
30%
33,272
1,460
‐
‐
75
(13,116)
(268)
2211,,442233
(527)
‐
((552277))
Page | 35
CAPRICORN METALS ANNUAL REPORT 2023
EEaarrnniinnggss uusseedd iinn ccaallccuullaattiinngg BBEEPPSS aanndd DDEEPPSS
Profit attributable to members of the parent entity
WWeeiigghhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess
AAddjjuussttmmeennttss ffoorr ccaallccuullaattiioonn ooff DDEEPPSS::
Performance rights
66..
IINNCCOOMMEE TTAAXX
AAccccoouunnttiinngg ppoolliiccyy
date.
AAmmoouunnttss rreeccooggnniisseedd iinn pprrooffiitt aanndd lloossss
((aa)) TTaaxx eexxppeennssee
Current tax
Deferred tax
Total tax expense for the period
Weighted average number of ordinary shares used to calculate DEPS
375,721,030
374,197,383
There have been no transactions involving ordinary shares between the reporting date and the date of completion of
these financial statements which would impact the above calculations.
1,963,732
5,440,818
The charge for current income tax expense is based on the profit for the year adjusted for any non‐assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the reporting
((bb)) NNuummeerriiccaall rreeccoonncciilliiaattiioonn bbeettwweeeenn ttaaxx eexxppeennssee aanndd pprree‐‐ttaaxx nneett pprrooffiitt oorr ((lloossss))
Net profit before tax
Corporate tax rate applicable
Income tax expense on above at applicable corporate rate
IInnccrreeaassee//((ddeeccrreeaassee)) iinnccoommee ttaaxx dduuee ttoo ttaaxx eeffffeecctt ooff::
Non‐deductible expenses
Current year tax losses not recognised
Non assessable income
Movement in unrecognised temporary differences
Recognition of previously unrecognised prior year tax losses
Deductible equity raising costs
Income tax expense attributable to entity
((cc)) AAmmoouunnttss cchhaarrggeedd oorr ((ccrreeddiitteedd)) ddiirreeccttllyy ttoo eeqquuiittyy
Relating to equity raising costs
Other
22002233
$$’’000000
22002222
$$’’000000
4,399
89,483
22002233
NNuummbbeerr
22002222
NNuummbbeerr
22002233
$$’’000000
‐
4,767
44,,776677
9,166
30%
2,750
1,425
‐
‐
‐
829
(237)
44,,776677
237
‐
223377
22002222
$$’’000000
‐
21,423
2211,,442233
110,906
30%
33,272
1,460
‐
‐
75
(13,116)
(268)
2211,,442233
(527)
‐
((552277))
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
77..
CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS
AAccccoouunnttiinngg ppoolliiccyy
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short‐term highly liquid
investments with original maturities of three months or less.
Weighted average number of ordinary shares used to calculate BEPS
373,757,298
368,756,565
RReeccoonncciilliiaattiioonn ooff pprrooffiitt aafftteerr ttaaxx ttoo nneett ccaasshh ffllooww ffrroomm ooppeerraattiioonnss::
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss
Cash at bank
Profit after income tax
AAddjjuussttmmeennttss ffoorr::
Depreciation
Amortisation
Unwinding of discount on provisions
Unrealised loss on derivatives
Fair value loss on financial assets
Share based payment
Profit on disposal of fixed assets
Unrealised foreign exchange gain
Payments for gold derivatives
CChhaannggeess iinn aasssseettss aanndd lliiaabbiilliittiieess
Increase in receivables
Increase in other current assets
Increase in inventories
Increase in financial assets
Increase in payables and accruals
Increase in provisions
Increase in deferred tax liabilities
Cashflow from operating activities
22002233
$$’’000000
110066,,447711
22002222
$$’’000000
6611,,550022
4,399
89,483
21,599
5,911
718
86,672
595
4,712
‐
(6)
33,105
(300)
(61)
25,042
6,623
677
4,458
340
4,893
(187)
‐
‐
(909)
(30)
(19,369)
(30,731)
9,228
590
4,767
115522,,556600
‐
12,918
657
21,423
113344,,665577
NNoonn‐‐ccaasshh iinnvveessttiinngg aanndd ffiinnaanncciinngg aaccttiivviittiieess
There were no non‐cash investing and financing activities during the year ended 30 June 2023 (2022: Nil).
AASSSSEETTSS
This section shows the assets used to generate the Group’s trading performance.
88..
RREECCEEIIVVAABBLLEESS
AAccccoouunnttiinngg ppoolliiccyy
Receivables include amounts due from customers for services performed in the ordinary course of business. Receivables
expected to be collected within 12 months of the end of the reporting period are classified as current assets. Other
receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any provision for impairment.
The Group applies the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Receivables are recognised at amortised cost, less any allowance for expected credit losses.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 35
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 36
57
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
RReecceeiivvaabblleess
GST receivable
Security deposits
Fuel tax credit receivable
Interest receivable
Other receivables
99..
IINNVVEENNTTOORRIIEESS
AAccccoouunnttiinngg ppoolliiccyy
22002233
$$’’000000
1,647
386
150
283
69
22002222
$$’’000000
1,551
478
(66)
26
246
22,,553355
22,,223355
Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and
net realisable value. Cost is determined by the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in converting
ore into gold bullion. Net realisable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and costs of selling the final product, including royalties.
Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is measured
on a first‐in first‐out basis at weighted average cost.
Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date are
classified as current assets, all other inventories are classified as non‐current. The following balances are carried at cost.
IInnvveennttoorriieess
CCuurrrreenntt
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
NNoonn‐‐CCuurrrreenntt
Ore stockpiles
22002233
$$’’000000
9,460
3,972
1,805
1,382
22002222
$$’’000000
6,844
4,356
2,497
1,216
1166,,661199
1144,,991133
4477,,554466
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 in accordance with the approved mine plan which includes the blending of ores. 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.
1100.. OOTTHHEERR FFIINNAANNCCIIAALL AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
The Group’s other financial assets include equity investments, gold call options and gold put options.
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.
58
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 37
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
RReecceeiivvaabblleess
GST receivable
Security deposits
Fuel tax credit receivable
Interest receivable
Other receivables
99..
IINNVVEENNTTOORRIIEESS
AAccccoouunnttiinngg ppoolliiccyy
IInnvveennttoorriieess
CCuurrrreenntt
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
NNoonn‐‐CCuurrrreenntt
Ore stockpiles
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
classified as current assets, all other inventories are classified as non‐current. The following balances are carried at cost.
22,,553355
22,,223355
22002233
$$’’000000
1,647
386
150
283
69
22002233
$$’’000000
9,460
3,972
1,805
1,382
22002222
$$’’000000
1,551
478
(66)
26
246
22002222
$$’’000000
6,844
4,356
2,497
1,216
1166,,661199
1144,,991133
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
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 in accordance with the approved mine plan which includes the blending of ores. 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.
1100.. OOTTHHEERR FFIINNAANNCCIIAALL AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
The Group’s other financial assets include equity investments, gold call options and gold put options.
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.
4477,,554466
2299,,888833
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 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
Page | 37
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 38
59
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
OOtthheerr ffiinnaanncciiaall aasssseettss
CCuurrrreenntt
Gold call options at FVTPL
Gold put options at FVTPL
Equity investments at FVTPL
NNoonn‐‐ccuurrrreenntt
Gold call options at FVTPL
22002233
$$’’000000
‐
2,564
953
33,,551177
22,,779900
22002222
$$’’000000
1,751
‐
1,348
33,,009999
33,,006677
GGoolldd ooppttiioonn aasssseettss
Gold option assets represent the fair value gold call option contracts entered into on 6 January 2020 and gold put option
contracts purchased on 26 June 2023.
GGoolldd ooppttiioonn aasssseettss
As at 1 July
Additions
Amortisation (refer Note 3)
Fair value adjustments (refer Note 4)
As at 30 June
22002233
$$’’000000
4,818
3,674
(2,028)
(1,110)
55,,335544
EEqquuiittyy iinnvveessttmmeennttss
Equity investments represent the fair value of shares held by the Company in ASX listed Companies.
EEqquuiittyy iinnvveessttmmeennttss
As at 1 July
Additions
Fair value adjustments (refer Note 4)
As at 30 June
FFaaiirr vvaalluuee ooff lliisstteedd sshhaarreess aanndd aassssuummppttiioonnss
EEvviioonn GGrroouupp NNLL ((ffoorrmmeerrllyy 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
1111.. AASSSSEETTSS HHEELLDD FFOORR SSAALLEE
AAccccoouunnttiinngg ppoolliiccyy
22002233
$$’’000000
1,348
200
(595)
995533
22002233
$0.036
$0.036
$0.0025
$0.0025
22002222
$$’’000000
5,753
‐
(935)
‐
44,,881188
22002222
$$’’000000
1,688
‐
(340)
11,,334488
22002222
$0.074
$0.074
$0.004
$0.004
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.
60
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 39
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
Gold option assets represent the fair value gold call option contracts entered into on 6 January 2020 and gold put option
contracts purchased on 26 June 2023.
Equity investments represent the fair value of shares held by the Company in ASX listed Companies.
OOtthheerr ffiinnaanncciiaall aasssseettss
CCuurrrreenntt
Gold call options at FVTPL
Gold put options at FVTPL
Equity investments at FVTPL
NNoonn‐‐ccuurrrreenntt
Gold call options at FVTPL
GGoolldd ooppttiioonn aasssseettss
Amortisation (refer Note 3)
Fair value adjustments (refer Note 4)
GGoolldd ooppttiioonn aasssseettss
As at 1 July
Additions
As at 30 June
EEqquuiittyy iinnvveessttmmeennttss
EEqquuiittyy iinnvveessttmmeennttss
As at 1 July
Additions
Fair value adjustments (refer Note 4)
As at 30 June
FFaaiirr vvaalluuee ooff lliisstteedd sshhaarreess aanndd aassssuummppttiioonnss
EEvviioonn GGrroouupp NNLL ((ffoorrmmeerrllyy 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
1111.. AASSSSEETTSS HHEELLDD FFOORR SSAALLEE
AAccccoouunnttiinngg ppoolliiccyy
22002233
$$’’000000
‐
2,564
953
33,,551177
22,,779900
22002233
$$’’000000
4,818
3,674
(2,028)
(1,110)
55,,335544
22002233
$$’’000000
1,348
200
(595)
995533
22002233
$0.036
$0.036
$0.0025
$0.0025
22002222
$$’’000000
1,751
‐
1,348
33,,009999
33,,006677
22002222
$$’’000000
5,753
(935)
‐
‐
44,,881188
22002222
$$’’000000
1,688
‐
(340)
11,,334488
22002222
$0.074
$0.074
$0.004
$0.004
Impairment losses on initial classification as held‐for‐sale or held‐for‐distribution and subsequent gains and losses on
remeasurement are recognised in profit or loss. Once classified as held‐for‐sale, intangible assets and property, plant and
equipment are no longer amortised or depreciated, and any equity‐accounted investee is no longer equity accounted.
The held‐for‐sale property is subject to review and revalued on the basis of independent valuations. Any revaluation
adjustment to the carrying amount is recognised in other comprehensive income and accumulated in equity under the
heading of asset revaluation reserve.
AAsssseettss hheelldd ffoorr ssaallee
Property asset
Impairment
Translation adjustment
22002233
$$’’000000
2,500
‐
‐
22002222
$$’’000000
2,500
‐
‐
22,,550000
22,,550000
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 2023 of 9,019,164,000
Ariary which translates to AUD $3,027,733 as at 30 June 2023 (2022: AUD $2,603,874). Based on the current valuation,
the Directors considered the carrying value appropriate for the year ended 30 June 2023.The fair value of the freehold
land was determined based on the market comparable approach that reflects recent transaction prices for similar
properties.
1122.. 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.
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 39
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 40
61
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
BBuuiillddiinnggss &&
IInnffrraassttrruuccttuurree
PPllaanntt &&
EEqquuiippmmeenntt
MMoobbiillee PPllaanntt
&& EEqquuiippmmeenntt
FFuurrnniittuurree &&
EEqquuiippmmeenntt
CCaappiittaall
WWIIPP
PPllaanntt aanndd eeqquuiippmmeenntt
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
$$’’000000
634
1,230
46,520
113,574
‐
(269)
(5,045)
(11,837)
(62)
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
‐
662
3,050
269
(832)
(1)
33,,114488
$$’’000000
$$’’000000
$$’’000000
428
416
13
2,632
TToottaall
$$’’000000
1,075
6,514
7,333
‐
(1,113)
(55)
77,,000099
‐
‐
‐
‐
170,477
‐
(18,827)
(118)
22,,664455
115599,,112211
As at 30 June 2022
Cost
Accumulated depreciation
48,094
(5,045)
115,216
(11,946)
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
3,980
(832)
33,,114488
8,377
(1,368)
2,645
178,312
‐
(19,191)
77,,000099
22,,664455
115599,,112211
BBuuiillddiinnggss &&
IInnffrraassttrruuccttuurree
PPllaanntt &&
EEqquuiippmmeenntt
MMoobbiillee PPllaanntt
&& EEqquuiippmmeenntt
FFuurrnniittuurree &&
EEqquuiippmmeenntt
CCaappiittaall
WWIIPP
PPllaanntt aanndd eeqquuiippmmeenntt
$$’’000000
$$’’000000
Net carrying amount at 1 July 2022
43,049
103,270
Additions
Depreciation
Amounts written off
1,738
(3,505)
1,656
(9,032)
(36)
$$’’000000
3,148
1,263
$$’’000000
7,009
1,509
(1,149)
(1,071)
‐
‐
$$’’000000
2,645
2,808
‐
‐
TToottaall
$$’’000000
159,121
8,974
(14,757)
(36)
Net carrying amount at 30 June 2023
4411,,228822
9955,,885588
33,,226622
77,,444477
55,,445533
115533,,330022
As at 30 June 2023
Cost
Accumulated depreciation
Net carrying amount at 30 June 2023
1133.. RRIIGGHHTT‐‐OOFF‐‐UUSSEE AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
49,832
(8,550)
4411,,228822
116,817
(20,959)
9955,,885588
5,243
(1,981)
33,,226622
9,886
(2,439)
5,453
187,231
‐
(33,929)
77,,444477
55,,445533
115533,,330022
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.
62
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 41
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
22,,664455
115599,,112211
AAccccoouunnttiinngg ppoolliiccyy
RRiigghhtt ooff uussee aasssseettss
As at 1 July
Additions to right‐of‐use assets
Depreciation charge for the year (refer to Note 3)
As at 30 June
22002233
$$’’000000
47,972
4,293
(6,901)
4455,,336644
22002222
$$’’000000
51,591
2,525
(6,144)
4477,,997722
Payments associated with short‐term leases and leases of low value assets for the year were $1,523,000 (2022:
$1,477,000).
1144.. DDEEFFEERRRREEDD EEXXPPLLOORRAATTIIOONN AANNDD EEVVAALLUUAATTIIOONN CCOOSSTTSS
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.
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.
DDeeffeerrrreedd eexxpplloorraattiioonn aanndd eevvaalluuaattiioonn ccoossttss
As at 1 July
Expenditure for the period
Acquisition of exploration and evaluation assets – MGGP
Acquisition of tenements
Transfer to mine properties
As at 30 June
22002233
$$’’000000
77,297
35,160
‐
‐
(6,734)
110055,,772233
22002222
$$’’000000
2,698
21,789
51,560
1,250
‐
7777,,229977
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– EExxpplloorraattiioonn aanndd eevvaalluuaattiioonn eexxppeennddiittuurree
EExxpplloorraattiioonn eexxppeennddiittuurree
Tenement acquisition costs are initially capitalised together with other exploration and evaluation expenditure. Costs
are only carried forward to the extent that they are expected to be recouped through the successful development of a
defined area of interest for which the Group has the rights to explore, evaluate and develop, the sale of the respective
areas of interest or where activities in the area of interest have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
PPllaannnneedd eexxpplloorraattiioonn eexxppeennddiittuurree
Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be required
to be met under the relevant legislation should the Group wish to retain tenure on all current tenements in which the
Group has an interest.
BBuuiillddiinnggss &&
PPllaanntt &&
MMoobbiillee PPllaanntt
FFuurrnniittuurree &&
CCaappiittaall
TToottaall
IInnffrraassttrruuccttuurree
EEqquuiippmmeenntt
&& EEqquuiippmmeenntt
EEqquuiippmmeenntt
PPllaanntt aanndd eeqquuiippmmeenntt
Net carrying amount at 1 July 2021
Additions
development
Transfers from mine properties under
Transfers between asset classes
Depreciation
Amounts written off
$$’’000000
1,574
‐
‐
46,520
113,574
(5,045)
(11,837)
$$’’000000
634
1,230
(269)
(62)
$$’’000000
$$’’000000
‐
662
3,050
269
(832)
(1)
33,,114488
428
416
7,333
‐
(1,113)
(55)
77,,000099
WWIIPP
$$’’000000
13
2,632
$$’’000000
1,075
6,514
‐
‐
‐
‐
170,477
‐
(18,827)
(118)
As at 30 June 2022
Cost
Accumulated depreciation
Net carrying amount at 30 June 2022
4433,,004499
110033,,227700
48,094
(5,045)
115,216
(11,946)
3,980
(832)
33,,114488
8,377
(1,368)
2,645
178,312
‐
(19,191)
77,,000099
22,,664455
115599,,112211
BBuuiillddiinnggss &&
PPllaanntt &&
MMoobbiillee PPllaanntt
FFuurrnniittuurree &&
CCaappiittaall
TToottaall
IInnffrraassttrruuccttuurree
EEqquuiippmmeenntt
&& EEqquuiippmmeenntt
EEqquuiippmmeenntt
PPllaanntt aanndd eeqquuiippmmeenntt
$$’’000000
$$’’000000
Net carrying amount at 1 July 2022
43,049
103,270
Additions
Depreciation
Amounts written off
1,738
(3,505)
1,656
(9,032)
(36)
$$’’000000
3,148
1,263
$$’’000000
7,009
1,509
(1,149)
(1,071)
‐
‐
WWIIPP
$$’’000000
2,645
2,808
‐
‐
$$’’000000
159,121
8,974
(14,757)
(36)
Net carrying amount at 30 June 2023
4411,,228822
9955,,885588
33,,226622
77,,444477
55,,445533
115533,,330022
As at 30 June 2023
Cost
Accumulated depreciation
Net carrying amount at 30 June 2023
1133.. RRIIGGHHTT‐‐OOFF‐‐UUSSEE AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
49,832
(8,550)
4411,,228822
116,817
(20,959)
9955,,885588
5,243
(1,981)
33,,226622
9,886
(2,439)
5,453
187,231
‐
(33,929)
77,,444477
55,,445533
115533,,330022
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.
liability.
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
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 41
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 42
63
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
EExxpplloorraattiioonn ccoommmmiittmmeennttss aatt rreeppoorrttiinngg ddaattee nnoott rreeccooggnniisseedd aass lliiaabbiilliittiieess
Within one year
22002233
$$’’000000
3,582
33,,558822
22002222
$$’’000000
3,313
33,,331133
Annual exploration expenditure after one year will be a similar commitment to that within one year, however this amount
is increased if new exploration tenements are added to the Group’s portfolio or reduced, if exploration tenements are
removed from the Group’s portfolio.
1155.. MMIINNEE PPRROOPPEERRTTIIEESS UUNNDDEERR DDEEVVEELLOOPPMMEENNTT
AAccccoouunnttiinngg ppoolliiccyy
Mine properties under development represents the costs incurred in preparing mines for production and includes plant
and equipment under construction and operating costs incurred before commercial production commences. These costs
are capitalised to the extent they are expected to be recouped through successful exploitation of the related mining
leases.
Once production commences, these costs are transferred to property, plant and equipment and mine properties, as
relevant, and are depreciated and amortised using the units‐of‐production method based on the estimated economically
recoverable reserves to which they relate or are written off if the mine property is abandoned.
MMiinnee pprrooppeerrttiieess uunnddeerr ddeevveellooppmmeenntt
As at 1 July
Construction expenditure capitalised
Pre‐production expenditure capitalised
Transfer to mine properties
Transfer to property plant & equipment
As at 30 June
22002233
$$’’000000
‐
‐
‐
‐
‐
‐‐
22002222
$$’’000000
208,323
18,000
(233)
(55,613)
(170,477)
‐‐
Transfers to plant and equipment relate to construction expenditure on the Karlawinda Gold Project.
1166.. MMIINNEE PPRROOPPEERRTTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
Mine properties represent expenditure in respect of exploration, evaluation, feasibility, pre‐production operating costs
incurred by the Group prior to the commencement of production and rehabilitation assets. All expenditure is carried
forward to the extent that it is expected to be recouped from future revenues. If additional expenditure is incurred in
respect of a mine property after production has commenced such expenditure is carried forward as part of the cost of
the mine property if it is expected to be recouped from future revenues otherwise the expenditure is classified as part of
the cost of production and expensed as incurred.
Mine properties are amortised on a unit‐of production basis over the life of the mine using tonnes of ore milled.
OOtthheerr PPrree‐‐pprroodduuccttiioonn RReehhaabbiilliittaattiioonn
TToottaall
MMiinnee pprrooppeerrttiieess
Net carrying amount at 1 July 2022
Additions
Transfers from Exploration
Amortisation (refer note 3)
Net carrying amount at 30 June 2023
64
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
$$’’000000
13,751
‐
6,734
(1,247)
1199,,223388
$$’’000000
16,908
‐
‐
(1,341)
1155,,556677
$$’’000000
15,969
283
‐
(1,295)
1144,,995577
$$’’000000
46,628
283
6,734
(3,883)
4499,,776622
Page | 43
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
The terms and conditions under which the Group retains title to its various tenements require it to meet tenement rentals
and minimum levels of exploration expenditure as gazetted by the Western Australian government, as well as local
government rates and taxes.
EExxpplloorraattiioonn ccoommmmiittmmeennttss aatt rreeppoorrttiinngg ddaattee nnoott rreeccooggnniisseedd aass lliiaabbiilliittiieess
Within one year
22002233
$$’’000000
3,582
33,,558822
22002222
$$’’000000
3,313
33,,331133
Annual exploration expenditure after one year will be a similar commitment to that within one year, however this amount
is increased if new exploration tenements are added to the Group’s portfolio or reduced, if exploration tenements are
removed from the Group’s portfolio.
1155.. MMIINNEE PPRROOPPEERRTTIIEESS UUNNDDEERR DDEEVVEELLOOPPMMEENNTT
AAccccoouunnttiinngg ppoolliiccyy
Mine properties under development represents the costs incurred in preparing mines for production and includes plant
and equipment under construction and operating costs incurred before commercial production commences. These costs
are capitalised to the extent they are expected to be recouped through successful exploitation of the related mining
leases.
Once production commences, these costs are transferred to property, plant and equipment and mine properties, as
relevant, and are depreciated and amortised using the units‐of‐production method based on the estimated economically
recoverable reserves to which they relate or are written off if the mine property is abandoned.
22002233
$$’’000000
‐
‐
‐
‐
‐
‐‐
22002222
$$’’000000
208,323
18,000
(233)
(55,613)
(170,477)
‐‐
Mine properties represent expenditure in respect of exploration, evaluation, feasibility, pre‐production operating costs
incurred by the Group prior to the commencement of production and rehabilitation assets. All expenditure is carried
forward to the extent that it is expected to be recouped from future revenues. If additional expenditure is incurred in
respect of a mine property after production has commenced such expenditure is carried forward as part of the cost of
the mine property if it is expected to be recouped from future revenues otherwise the expenditure is classified as part of
the cost of production and expensed as incurred.
Mine properties are amortised on a unit‐of production basis over the life of the mine using tonnes of ore milled.
MMiinnee pprrooppeerrttiieess uunnddeerr ddeevveellooppmmeenntt
As at 1 July
Construction expenditure capitalised
Pre‐production expenditure capitalised
Transfer to mine properties
Transfer to property plant & equipment
As at 30 June
1166.. MMIINNEE PPRROOPPEERRTTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
MMiinnee pprrooppeerrttiieess
Net carrying amount at 1 July 2022
Additions
Transfers from Exploration
Amortisation (refer note 3)
Net carrying amount at 30 June 2023
OOtthheerr PPrree‐‐pprroodduuccttiioonn RReehhaabbiilliittaattiioonn
TToottaall
$$’’000000
13,751
‐
6,734
(1,247)
1199,,223388
$$’’000000
16,908
‐
‐
(1,341)
1155,,556677
$$’’000000
15,969
283
‐
(1,295)
1144,,995577
$$’’000000
46,628
283
6,734
(3,883)
4499,,776622
Page | 43
As at 30 June 2023
Cost
Accumulated amortisation
Net carrying amount at 30 June 2023
1177..
IIMMPPAAIIRRMMEENNTT OOFF NNOONN‐‐FFIINNAANNCCIIAALL AASSSSEETTSS
AAccccoouunnttiinngg ppoolliiccyy
OOtthheerr PPrree‐‐pprroodduuccttiioonn RReehhaabbiilliittaattiioonn
$$’’000000
$$’’000000
$$’’000000
22,211
(2,973)
1199,,223388
18,865
(3,298)
1155,,556677
18,257
(3,300)
1144,,995577
TToottaall
$$’’000000
59,333
(9,571)
4499,,776622
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.
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
Transfers to plant and equipment relate to construction expenditure on the Karlawinda Gold Project.
LLIIAABBIILLIITTIIEESS
This section shows the liabilities incurred as a result of the trading activities of the Group.
1188.. 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.
TTrraaddee aanndd ootthheerr ppaayyaabblleess
Trade payables
Accrued expenses
Other payables
22002233
$$’’000000
17,141
10,260
5,825
3333,,222266
22002222
$$’’000000
8,169
12,156
7,082
2277,,440077
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 44
65
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
1199.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
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.
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.
LLeeaassee lliiaabbiilliittiieess
CCuurrrreenntt
Lease liabilities
NNoonn‐‐CCuurrrreenntt
Lease liabilities
22002233
$$’’000000
22002222
$$’’000000
99,,442288
77,,661133
3311,,776699
3377,,882222
Interest expense in relation to lease liabilities for the year ended 30 June 2023 was $3,318,000 (2022: $3,441,000) (refer
to Note 4).
Total cash outflows relating to leases during the year were $11,962,000 (2022: $10,864,000) comprising, principal
($8,644,000) and interest ($3,318,000) 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 2023, including non‐lease
components such as labour, totalled $77,222,769 (2022: $77,199,000).
Payments associated with short‐term leases and leases of low value assets for the year were $1,706,377 (2022:
$1,477,000).
66
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 45
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
1199.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
2200.. BBOORRRROOWWIINNGGSS
AAccccoouunnttiinngg ppoolliiccyy
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.
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.
22002233
$$’’000000
22002222
$$’’000000
99,,442288
77,,661133
3311,,776699
3377,,882222
LLeeaassee lliiaabbiilliittiieess
CCuurrrreenntt
Lease liabilities
NNoonn‐‐CCuurrrreenntt
Lease liabilities
to Note 4).
Interest expense in relation to lease liabilities for the year ended 30 June 2023 was $3,318,000 (2022: $3,441,000) (refer
Total cash outflows relating to leases during the year were $11,962,000 (2022: $10,864,000) comprising, principal
($8,644,000) and interest ($3,318,000) payments.
The Group’s contracts that contain leases that are structured as variable payments are not included in the measurement
of lease liabilities under AASB 16. Variable lease payments for the year ended 30 June 2023, including non‐lease
components such as labour, totalled $77,222,769 (2022: $77,199,000).
Payments associated with short‐term leases and leases of low value assets for the year were $1,706,377 (2022:
$1,477,000).
Interest bearing borrowings are initially measured at fair value, net of directly attributable transaction costs. After initial
recognition, interest‐bearing borrowings are subsequently measured at amortised cost using the effective interest rate
method.
Borrowings which are due to be settled within 12 months after the balance sheet date are included in current borrowings
in the balance sheet even though the original term was for a period longer than 12 months or an agreement to refinance,
or to reschedule payments, on a long‐term basis is completed after the balance sheet date and before the financial
statements are authorised for issue. Other borrowings to be settled more than 12 months after the balance sheet date
are included in non‐current borrowings in the balance sheet.
BBoorrrroowwiinnggss
CCuurrrreenntt
Bank loans
NNoonn‐‐CCuurrrreenntt
Bank loans
22002233
$$’’000000
22002222
$$’’000000
661133
3388,,338866
5500,,000000
2277,,000000
Borrowings comprise of amounts drawn down on an original Project Loan Facility of $100 Million with Macquarie Bank
Limited (“Macquarie”). The facility accrues interest at the bank bill rate plus 3% and was repayable in various instalments
over a term ending 30 June 2025 however, voluntary repayments can be made in accordance with the facility agreement.
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.
The bank holds a first ranking, registered fixed and floating charge over all the assets of Capricorn Metals Ltd and its
wholly owned subsidiaries, as security for the facility provided by Macquarie.
The facility includes customary liquidity and debt service covenants. The Group is in compliance with its covenants.
2211.. 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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 45
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 46
67
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
PPrroovviissiioonnss
CCuurrrreenntt
Annual leave
Rehabilitation
NNoonn‐‐CCuurrrreenntt
Long service leave
ROU asset demobilisation
Rehabilitation
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
Unwinding of the discount (refer Note 4)
As at 30 June
22002233
$$’’000000
1,431
26
11,,445577
338
743
29,371
3300,,445522
22002233
$$’’000000
28,416
283
(19)
(1)
‐
718
2299,,339977
22002222
$$’’000000
1,076
11
11,,008877
118
703
28,405
2299,,222266
22002222
$$’’000000
21,271
149
(15)
(3,446)
9,779
678
2288,,441166
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– RReehhaabbiilliittaattiioonn pprroovviissiioonn
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.
68
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 47
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
2222.. OOTTHHEERR FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
OOtthheerr lloonngg‐‐tteerrmm eemmppllooyyeeee bbeenneeffiittss
The Group’s other financial liabilities include gold call options and gold forwards.
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.
RReeccooggnniittiioonn aanndd iinniittiiaall mmeeaassuurreemmeenntt
All financial liabilities are initially recognised when the Group becomes party to the contractual provisions of the
instrument.
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.
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 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.
HHeeddggee aaccccoouunnttiinngg
The Group designates certain financial liabilities as hedging instruments to hedge the variability in cash flows associated
with highly probable forecast transactions arising from changes in the gold price.
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.
PPrroovviissiioonnss
CCuurrrreenntt
Annual leave
Rehabilitation
NNoonn‐‐CCuurrrreenntt
Long service leave
ROU asset demobilisation
Rehabilitation
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
Unwinding of the discount (refer Note 4)
As at 30 June
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– RReehhaabbiilliittaattiioonn pprroovviissiioonn
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
22002233
$$’’000000
1,431
26
11,,445577
338
743
29,371
3300,,445522
22002233
$$’’000000
28,416
283
(19)
(1)
‐
718
2299,,339977
22002222
$$’’000000
1,076
11
11,,008877
118
703
28,405
2299,,222266
22002222
$$’’000000
21,271
149
(15)
(3,446)
9,779
678
2288,,441166
Page | 47
At inception of designated hedging relationships, the Group documents the risk management objective and strategy for
undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging
instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to
offset each other.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 48
69
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCaasshhffllooww hheeddggeess
When a financial liability is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the financial liability is recognised in OCI and accumulated in the hedging reserve. The effective portion of changes in
the fair value of the financial liability that is recognised in OCI is limited to the cumulative change in fair value of the
hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the
fair value of the financial liability is recognised immediately in profit or loss.
The amount accumulated in the hedging reserve and the cost of hedging reserve is reclassified to profit or loss in the
same period or periods during which the hedged expected future cash flows affect profit or loss.
If the financial liability no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow
hedges is discontinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge
of a transaction resulting in the recognition of a non‐financial item, it is included in the non‐financial item’s cost on its
initial recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the
hedged expected future cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the
hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss.
The company has adopted hedge accounting from 1 July 2023.
OOtthheerr ffiinnaanncciiaall lliiaabbiilliittiieess
NNoonn‐‐ccuurrrreenntt
Gold call options at FVTPL
Gold forwards at FVTPL
22002233
$$’’000000
13,926
83,177
9977,,110033
22002222
$$’’000000
11,540
‐
1111,,554400
GGoolldd ccaallll ooppttiioonnss
Gold call option liability refers to the fair value of the gold call option contract entered into on 6 January 2020. Subsequent
measurement of the gold call option contracts, which expire on 30 June 2025, is at fair value at balance date with any
changes in the fair value immediately recognised in the profit or loss.
GGoolldd ccaallll ooppttiioonnss
As at 1 July
Fair value adjustments (refer Note 4)
As at 30 June
22002233
$$’’000000
11,540
2,386
1133,,992266
22002222
$$’’000000
7,083
4,457
1111,,554400
GGoolldd ffoorrwwaarrddss
Gold forward liability refers to the fair value of the remaining gold forward contracts at year end which expire at various
dates up until 31 December 2026.
Previously the Company was required to only recognise the fair value the gold forward contracts that settled.
GGoolldd ffoorrwwaarrddss
As at 1 July
Fair value adjustments (refer Note 4)
As at 30 June
2233.. DDEEFFEERRRREEDD TTAAXX LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
22002233
$$’’000000
‐
83,177
8833,,117777
22002222
$$’’000000
‐
‐
‐‐
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
70
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 49
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
CCaasshhffllooww hheeddggeess
When a financial liability is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the financial liability is recognised in OCI and accumulated in the hedging reserve. The effective portion of changes in
the fair value of the financial liability that is recognised in OCI is limited to the cumulative change in fair value of the
hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the
fair value of the financial liability is recognised immediately in profit or loss.
The amount accumulated in the hedging reserve and the cost of hedging reserve is reclassified to profit or loss in the
same period or periods during which the hedged expected future cash flows affect profit or loss.
If the financial liability no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow
hedges is discontinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge
of a transaction resulting in the recognition of a non‐financial item, it is included in the non‐financial item’s cost on its
initial recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the
hedged expected future cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the
hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss.
The company has adopted hedge accounting from 1 July 2023.
Gold call option liability refers to the fair value of the gold call option contract entered into on 6 January 2020. Subsequent
measurement of the 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.
Gold forward liability refers to the fair value of the remaining gold forward contracts at year end which expire at various
dates up until 31 December 2026.
Previously the Company was required to only recognise the fair value the gold forward contracts that settled.
22002233
$$’’000000
13,926
83,177
9977,,110033
22002233
$$’’000000
11,540
2,386
1133,,992266
22002233
$$’’000000
‐
83,177
8833,,117777
22002222
$$’’000000
11,540
‐
1111,,554400
22002222
$$’’000000
7,083
4,457
1111,,554400
22002222
$$’’000000
‐
‐
‐‐
OOtthheerr ffiinnaanncciiaall lliiaabbiilliittiieess
NNoonn‐‐ccuurrrreenntt
Gold call options at FVTPL
Gold forwards at FVTPL
GGoolldd ccaallll ooppttiioonnss
Fair value adjustments (refer Note 4)
GGoolldd ccaallll ooppttiioonnss
As at 1 July
As at 30 June
GGoolldd ffoorrwwaarrddss
GGoolldd ffoorrwwaarrddss
As at 1 July
As at 30 June
Fair value adjustments (refer Note 4)
2233.. DDEEFFEERRRREEDD TTAAXX LLIIAABBIILLIITTIIEESS
AAccccoouunnttiinngg ppoolliiccyy
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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.
DDeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
((aa)) RReeccooggnniisseedd ddeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
DDeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Prepayments
Exploration and mine properties
Inventory
Plant and equipment
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 liabilities
Income tax expense recognised in profit or loss
Income tax (expense)/benefit recognised in equity
Closing balance at 30 June – net deferred tax liabilities
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– DDeeffeerrrreedd ttaaxx aasssseettss
22002233
$$’’000000
30%
4
31,697
6,535
44,029
85
82,350
(56,450)
2255,,990000
531
56
28,327
8,819
4
290
18,244
179
56,450
(56,450)
‐‐
(20,896)
(4,767)
(237)
((2255,,990000))
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))
‐
‐
‐
‐‐
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.
Page | 49
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 50
71
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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.
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.
2244..
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.
IIssssuueedd ccaappiittaall
Ordinary shares ‐ issued and fully paid
MMoovveemmeenntt iinn oorrddiinnaarryy sshhaarreess oonn iissssuuee
As at 1 July 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
22002233
$$’’000000
220033,,442222
NNuummbbeerr ooff
SShhaarreess
350,019,479
10,000,000
3,275,000
8,285,954
344,752
‐
‐
22002222
$$’’000000
220033,,552244
$$’’000000
180,629
6,000
‐
15,160
1,250
(42)
527
As at 30 June 2022
337711,,992255,,118855
220033,,552244
As at 30 June 2022
Issue of shares on exercise of performance rights (5)
Transaction costs
As at 30 June 2023
371,925,185
4,032,990
‐
337755,,995588,,117755
203,524
‐
(102)
220033,,442222
(1) On 28 July 2021, 10,000,000 options were exercised at an exercise price of $0.60 each.
(2) During the 2022 financial 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.
72
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 51
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
(5) During the 2023 financial year 4,032,990 performance rights were exercised for nil value to employees in accordance with the
shareholder approved Performance Rights Plan.
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.
2255.. RREESSEERRVVEESS
RReesseerrvveess
As at 1 July 2021
Share‐based payment transactions (refer note 29)
Translation movement for the year
Transfers (1)
As at 30 June 2022
Share‐based payment transactions (refer note 29)
Translation movement for the year
Transfers (1)
As at 30 June 2023
SShhaarree‐‐bbaasseedd
ppaayymmeenntt rreesseerrvvee
FFoorreeiiggnn ccuurrrreennccyy
ttrraannssllaattiioonn rreesseerrvvee
TToottaall
RReesseerrvveess
$$’’000000
11,499
4,893
‐
(9,243)
77,,114499
4,712
‐
(7,672)
44,,118899
$$’’000000
(852)
‐
(196)
‐
((11,,004488))
‐
(7)
‐
((11,,005555))
$$’’000000
10,647
4,893
(196)
(9,243)
66,,110011
4,712
(7)
(7,672)
33,,113344
(1) Transfer refers to options and performance rights that were either exercised, forfeited or expired in current and previous
periods that have been transferred to retained earnings (refer to Note 26).
SShhaarree‐‐bbaasseedd ppaayymmeennttss rreesseerrvvee
The share‐based payments reserve is used to record the value of share‐based payments including options and
performance rights to Directors, employees, including KMPs, as part of their remuneration.
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The foreign currency translation reserve records exchange differences arising on translation of foreign controlled
subsidiaries.
2266.. RREETTAAIINNEEDD EEAARRNNIINNGGSS
RReettaaiinneedd eeaarrnniinnggss
As at 1 July
Profit for the year
Transfers (1)
As at 30 June
22002233
$$’’000000
37,910
4,399
7,672
4499,,998811
22002222
$$’’000000
(60,816)
89,483
9,243
3377,,991100
Issue of shares on exercise of performance rights (5)
(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 25).
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 51
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 52
73
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.
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
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
This section outlines how the Group manages its capital.
considered remote.
EEQQUUIITTYY
2244..
IISSSSUUEEDD CCAAPPIITTAALL
AAccccoouunnttiinngg ppoolliiccyy
received.
IIssssuueedd ccaappiittaall
Ordinary shares ‐ issued and fully paid
MMoovveemmeenntt iinn oorrddiinnaarryy sshhaarreess oonn iissssuuee
As at 1 July 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
As at 30 June 2022
As at 30 June 2022
Transaction costs
As at 30 June 2023
22002233
$$’’000000
220033,,442222
NNuummbbeerr ooff
SShhaarreess
350,019,479
10,000,000
3,275,000
8,285,954
344,752
‐
‐
‐
371,925,185
4,032,990
337755,,995588,,117755
22002222
$$’’000000
220033,,552244
$$’’000000
180,629
6,000
‐
15,160
1,250
(42)
527
203,524
‐
(102)
220033,,442222
Tax effect of deferred tax deductions posted directly to equity
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 2022 financial year 3,275,000 performance rights were exercised for nil value to employees in accordance with the
(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
shareholder approved Performance Rights Plan.
Mt Gibson Gold project as announced on 28 July 2021.
Mumbakine well project as announced on 30 May 2022.
(4) On the 29 June 2022, 344,752 shares with a fair value of $3.62 a share were issued in consideration for the acquisition of the
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
RRIISSKK
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s
financial position and performance.
2277.. FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
In common with other businesses, the Group is exposed to risks that arise from its use of financial instruments. The
Group’s key financial instruments comprise cash and cash equivalents, trade and other receivables, gold option assets,
trade and other payables, lease liabilities, gold call options, gold forwards and borrowings.
In June 2023, the Company announced that it had reduced its gold forward contracts by 51,000 ounces to provide further
exposure to any increase in the A$ gold price. The closure of the gold forwards means the Company does not have any
hedging delivery obligations until September 2024.
The restructure of the gold forwards has led to a change in the accounting for the remaining gold forwards and are now
valued through the profit and loss. These contracts previously qualified as future inventory sales contracts with the sales
value recognised as revenue at the time of sale, also known as the “own use” exemption.
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.
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 call options
Gold put options
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Lease liabilities
Borrowings
Gold call options
Gold forwards
MMaarrkkeett rriisskk
FFoorreeiiggnn ccuurrrreennccyy rriisskk
22002233
$$’’000000
106,471
2,535
953
2,790
2,564
111155,,331133
33,226
41,197
50,613
13,926
83,177
22002222
$$’’000000
61,502
2,235
1,348
4,818
‐
6699,,990022
27,407
45,435
65,386
11,540
‐
222222,,113399
114499,,776688
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 53
74
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s
RRIISSKK
financial position and performance.
2277.. 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 option assets,
trade and other payables, lease liabilities, gold call options, gold forwards and borrowings.
In June 2023, the Company announced that it had reduced its gold forward contracts by 51,000 ounces to provide further
exposure to any increase in the A$ gold price. The closure of the gold forwards means the Company does not have any
hedging delivery obligations until September 2024.
The restructure of the gold forwards has led to a change in the accounting for the remaining gold forwards and are now
valued through the profit and loss. These contracts previously qualified as future inventory sales contracts with the sales
value recognised as revenue at the time of sale, also known as the “own use” exemption.
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
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
statements.
in this note.
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.
Group’s competitiveness and flexibility.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the
CCaatteeggoorriieess ooff ffiinnaanncciiaall iinnssttrruummeennttss
FFiinnaanncciiaall aasssseettss
Cash and cash equivalents
Receivables
Equity investments
Gold call options
Gold put options
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Lease liabilities
Borrowings
Gold call options
Gold forwards
MMaarrkkeett rriisskk
FFoorreeiiggnn ccuurrrreennccyy rriisskk
22002233
$$’’000000
106,471
2,535
953
2,790
2,564
111155,,331133
33,226
41,197
50,613
13,926
83,177
22002222
$$’’000000
61,502
2,235
1,348
4,818
‐
6699,,990022
27,407
45,435
65,386
11,540
‐
222222,,113399
114499,,776688
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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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:
IInntteerreesstt‐‐bbeeaarriinngg ffiinnaanncciiaall iinnssttrruummeennttss
FFiixxeedd rraattee iinnssttrruummeennttss
Term deposits
Lease liabilities
VVaarriiaabbllee rraattee iinnssttrruummeennttss
Cash and cash equivalents
Borrowings
22002233
$$’’000000
386
(41,197)
((4400,,881111))
106,471
(50,613)
5555,,885588
22002222
$$’’000000
478
(45,435)
((4444,,995577))
61,502
(65,386)
((33,,888844))
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 (2022: 200 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.
IInntteerreesstt‐‐bbeeaarriinngg ffiinnaanncciiaall iinnssttrruummeennttss
Variable rate instruments
CCoommmmooddiittyy pprriiccee rriisskk
22002233
220000bbpp
iinnccrreeaassee
$$’’000000
1,117
220000bbpp
ddeeccrreeaassee
$$’’000000
(1,117)
22002222
220000bbpp
iinnccrreeaassee
$$’’000000
(78)
220000bbpp
ddeeccrreeaassee
$$’’000000
78
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 put
options (refer Note 10), gold call options and gold forwards (refer Note 22) and its sold gold call option contract (refer
Note 22).
The following table reflects the impact on equity and profit or loss relating to the gold put options, gold call options and
the gold forwards of a $100 change in the spot price of gold as at 30 June 2023 (2022: $100).
22002233
$$110000
IInnccrreeaassee
$$’’000000
(2,564)
(1,670)
(10,700)
$$110000
ddeeccrreeaassee
$$’’000000
5,100
1,670
10,700
22002222
$$110000
iinnccrreeaassee
$$’’000000
n/a
(391)
n/a
$$110000
ddeeccrreeaassee
$$’’000000
n/a
391
n/a
Gold put options
Gold call options
Gold forwards
CCrreeddiitt rriisskk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligation.
Page | 53
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 54
75
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
Credit risk is managed to ensure that customers and counterparties 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
CCaarrrryyiinngg
aammoouunntt
lliiaabbiilliittiieess
TToottaall
ccoonnttrraaccttuuaall
ccaasshh fflloowwss
<<66
mmoonntthhss
66‐‐1122
mmoonntthhss
22002233
Trade and other payables
Lease liabilities
Borrowings
Gold forwards
$$’’000000
33,226
41,197
50,613
83,177
$$’’000000
$$’’000000
$$’’000000
33,226
33,226
50,515
60,408
83,177
6,053
2,245
‐
‐
5,915
1,633
11‐‐22
yyeeaarrss
$$’’000000
‐
22‐‐55
yyeeaarrss
$$’’000000
‐
>>55 yyeeaarrss
$$’’000000
‐
11,280
15,074
12,193
3,265
53,265
‐
‐
31,697
51,480
220088,,221133
222277,,332266
4411,,552244
77,,554488
4466,,224422 111199,,881199
1122,,119933
22002222
Trade and other payables
Lease liabilities
Borrowings
$$’’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
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
22002233
$$’’000000
953
2,564
‐
33,,551177
22002222
$$’’000000
1,348
2,500
‐
33,,884488
LLiiaabbiilliittiieess
22002233
$$’’000000
‐
22002222
$$’’000000
‐
(97,103)
(11,540)
‐
‐
((9977,,110033))
((1111,,554400))
Included within Level 1 of the hierarchy are the Evion Group NL (formerly BlackEarth Minerals NL) and DiscovEx Resources
Limited shares listed on the Australian Securities Exchange. The fair value of these financial assets has been based on the
closing quoted bid prices at the end of the reporting period, excluding transaction costs.
76
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 55
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
Credit risk is managed to ensure that customers and counterparties are of sound credit worthiness and monitoring is
Included within Level 2 of the hierarchy is the gold put options, gold call options and the gold forwards.
used to recover aged debts and assess receivables for impairment. Credit terms are generally 30 days from the invoice
Risk is also minimized by investing surplus funds in financial institutions with a high credit rating.
date.
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
CCaarrrryyiinngg
TToottaall
aammoouunntt
ccoonnttrraaccttuuaall
<<66
66‐‐1122
lliiaabbiilliittiieess
ccaasshh fflloowwss
mmoonntthhss
mmoonntthhss
$$’’000000
33,226
41,197
50,613
83,177
$$’’000000
$$’’000000
$$’’000000
33,226
33,226
50,515
60,408
83,177
6,053
2,245
‐
‐
5,915
1,633
11‐‐22
yyeeaarrss
$$’’000000
‐
22‐‐55
yyeeaarrss
$$’’000000
‐
>>55 yyeeaarrss
$$’’000000
11,280
15,074
12,193
3,265
53,265
‐
31,697
51,480
220088,,221133
222277,,332266
4411,,552244
77,,554488
4466,,224422 111199,,881199
1122,,119933
CCaarrrryyiinngg
TToottaall
aammoouunntt
ccoonnttrraaccttuuaall
<<66
66‐‐1122
lliiaabbiilliittiieess
ccaasshh fflloowwss
mmoonntthhss
mmoonntthhss
$$’’000000
$$’’000000
$$’’000000
27,407
27,407
58,732
5,400
72,313
16,541
‐
5,478
1,155
66,,663333
11‐‐22
yyeeaarrss
$$’’000000
‐
22‐‐55
yyeeaarrss
$$’’000000
‐
>>55 yyeeaarrss
$$’’000000
10,819
21,392
15,643
2,309
52,309
113388,,222288
115588,,445522
4499,,334488
1133,,112288
7733,,770011
1155,,664433
‐
‐
‐
‐
22002233
Trade and other payables
Lease liabilities
Borrowings
Gold forwards
22002222
Trade and other payables
Lease liabilities
Borrowings
$$’’000000
27,407
45,435
65,386
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
LLiiaabbiilliittiieess
22002233
$$’’000000
953
2,564
‐
33,,551177
22002222
$$’’000000
1,348
2,500
‐
33,,884488
22002233
$$’’000000
‐
‐
(97,103)
(11,540)
((9977,,110033))
((1111,,554400))
22002222
$$’’000000
‐
‐
Included within Level 1 of the hierarchy are the Evion Group NL (formerly BlackEarth Minerals NL) and DiscovEx Resources
Limited shares listed on the Australian Securities Exchange. The fair value of these financial assets has been based on the
closing quoted bid prices at the end of the reporting period, excluding transaction costs.
The fair value of the gold put options, the gold call options and the gold forwards 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 put options. gold call options or the gold
forwards 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.
2288.. 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.
OOTTHHEERR DDIISSCCLLOOSSUURREESS
This section provides information on items which require disclosure to comply with Australian Standards and other
regulatory requirements.
2299.. SSHHAARREE BBAASSEEDD PPAAYYMMEENNTTSS
AAccccoouunnttiinngg ppoolliiccyy
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
Page | 55
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 56
77
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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
Performance rights expense
22002233
$$’’000000
44,,771122
22002222
$$’’000000
44,,889933
OOppttiioonnss
The following table outlines the number and weighted average exercise price (“WAEP”) of, and movements in, options
during the year:
OOppttiioonnss
Outstanding as at 1 July
Granted during the year
Exercised during the year
Outstanding at end of the year
Exercisable as at 30 June
22002233
22002222
NNuummbbeerr
WWAAEEPP
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
NNuummbbeerr
10,000,000
‐
(10,000,000)
‐
‐
WWAAEEPP
$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.
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 2023 and 30 June 2022.
PPeerrffoorrmmaannccee rriigghhttss
The following table outlines the number and movements in Performance rights during the year:
PPeerrffoorrmmaannccee rriigghhttss
Outstanding as at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Unissued during the year
Outstanding at end of the year
Exercisable as at 30 June
22002233
NNuummbbeerr ooff
RRiigghhttss
5,440,818
920,304
(148,000)
22002222
NNuummbbeerr ooff
RRiigghhttss
7,175,000
1,840,818
(300,000)
(4,032,990)
(3,275,000)
(216,400)
11,,996633,,773322
‐‐
‐‐
55,,444400,,881188
‐‐
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.
78
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 57
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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
‐
$1.18
IIssssuuee 22
27 Mar 2020
$0.95
nil
0%
0.38%
123%
2.85
01/02/23
‐
$0.95
In October 2021, 2,000,000 Dec 2019 Performance rights were exercised by KMP, Mr Kim Massey and Mr Paul Thomas.
In February 2022, 1,275,000 Mar 2020 Performance rights were exercised by employees.
and in February 2023, 975,000 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.
In September 2022, 2,000,000 of the Dec 2019 Performance rights were exercised by KMP, Mr Kim Massey and Mr Paul
Thomas.
In February 2023, 975,000 Mar 2020 Performance rights were exercised by employees.
There are no Performance rights remaining from the Financial year 2020.
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.
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
Page | 57
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 58
79
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
PPllaannss
below.
Total expenses arising from share‐based payment transactions recognised during the period were as follows:
22002233
$$’’000000
44,,771122
22002222
$$’’000000
44,,889933
The following table outlines the number and weighted average exercise price (“WAEP”) of, and movements in, options
RReeccooggnniisseedd sshhaarree‐‐bbaasseedd ppaayymmeennttss eexxppeennssee
Performance rights expense
OOppttiioonnss
during the year:
OOppttiioonnss
Outstanding as at 1 July
Granted during the year
Exercised during the year
Outstanding at end of the year
Exercisable as at 30 June
22002233
22002222
NNuummbbeerr
WWAAEEPP
‐
‐
‐
‐
‐
NNuummbbeerr
10,000,000
(10,000,000)
‐
‐
‐
‐
‐
‐
‐
‐
WWAAEEPP
$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.
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 2023 and 30 June 2022.
PPeerrffoorrmmaannccee rriigghhttss
The following table outlines the number and movements in Performance rights during the year:
22002233
NNuummbbeerr ooff
RRiigghhttss
5,440,818
920,304
(148,000)
(216,400)
11,,996633,,773322
‐‐
22002222
NNuummbbeerr ooff
RRiigghhttss
7,175,000
1,840,818
(300,000)
55,,444400,,881188
‐‐
‐‐
(4,032,990)
(3,275,000)
PPeerrffoorrmmaannccee rriigghhttss
Outstanding as at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Unissued during the year
Outstanding at end of the year
Exercisable as at 30 June
FFiinnaanncciiaall yyeeaarr 22002200
17 September 2022.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
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
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
$1.77
16 Jun 2021
$1.94
nil
0%
0.04% ‐ 0.14%
91% ‐ 118%
1.59 ‐ 2.59
18/01/23 & 18/01/24
0.75
$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
0.75
$1.94
In December 2022, 12,500 Oct 2020 Performance rights were exercised, and in February 2023, 100,000 of the Oct 2020
Performance rights were exercised.
In May 2023, 200,000 Jun 2021 (Issue 2 and 3) Performance rights were exercised.
In March and April 2022, 100,000 Oct 2020 Performance rights were forfeited due to the resignations of employees in
accordance with the Performance Rights Plan.
There are 312,500 Performance rights remaining from Financial year 2021.
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 2, 4, 5 and 6 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 $6,948,177.
The fair value at the grant date was estimated using a Monte Carlo simulation (Issue 1 & 3), and a Black Scholes option
pricing model (Issue 3, 4 & 5).
80
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 59
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
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
Performance rights were exercised.
IIssssuuee 11
19 Oct 2020
$1.77
nil
0%
0.13% ‐ 0.14%
95% ‐ 123%
1.95 ‐ 2.95
0.25
$1.77
0.04% ‐ 0.14%
0.04% ‐ 0.14%
IIssssuuee 22
16 Jun 2021
$1.94
nil
0%
91% ‐ 118%
1.59 ‐ 2.59
0.75
$1.94
IIssssuuee 33
16 Jun 2021
$1.94
nil
0%
91% ‐ 118%
1.59 ‐ 2.59
0.75
$1.94
30/09/22 & 30/09/23
18/01/23 & 18/01/24
29/03/23 & 29/03/24
FFiinnaanncciiaall yyeeaarr 22002222
June 2024.
In December 2021:
December 2024;
‐
‐
‐
In December 2022, 12,500 Oct 2020 Performance rights were exercised, and in February 2023, 100,000 of the Oct 2020
In May 2023, 200,000 Jun 2021 (Issue 2 and 3) Performance rights were exercised.
In March and April 2022, 100,000 Oct 2020 Performance rights were forfeited due to the resignations of employees in
accordance with the Performance Rights Plan.
There are 312,500 Performance rights remaining from Financial year 2021.
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
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.
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
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 2, 4, 5 and 6 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 $6,948,177.
The fair value at the grant date was estimated using a Monte Carlo simulation (Issue 1 & 3), and a Black Scholes option
pricing model (Issue 3, 4 & 5).
IItteemm
Grant date
Value at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period (yrs)
Test date
IIssssuuee 11
IIssssuuee 22
IIssssuuee 33
IIssssuuee 44
IIssssuuee 55
4 Oct 2021
24 Nov 2021
10 Dec 2021
10 Dec 2021
10 Dec 2021
$2.18
$2.95
$3.10
$3.10
$3.10
nil
0%
0.05% ‐ 0.27%
50%
nil
0%
0.54%
50%
nil
0%
nil
0%
1.32%
1.32%
72% ‐ 106%
72% ‐ 106%
2.00 – 3.00
1.00 – 2.00
1.00 – 3.00
2.00 – 3.00
nil
0%
1.32%
106%
3.00
30/6/23 &
30/06/24
4/10/22 &
4/10/23
10/12/22,
10/12/23 &
10/12/24
10/12/23 &
10/12/24
10/12/24
Remaining performance period (yrs)
Weighted average fair value
0.00‐1.00
$1.83
0.26
$2.11
0.45 – 1.45
0.45 ‐ 1.45
$3.10
$3.10
1.45
$3.10
In December 2022, 120,000 Nov 2021 Performance rights were issued to KMP, Mr Mark Clark.
In December 2022 83,000 Dec 2021 (Issue 3) Performance rights were exercised by KMP, Mr Mark Clark.
In June 2023, 148,000 Dec 21 (Issue 3) Performance rights were forfeited due to the resignation of employees in
accordance with the Performance Rights Plan.
There are 1,489,818 Performance rights remaining from Financial year 2022.
FFiinnaanncciiaall yyeeaarr 22002233
In November 2022, 542,490 Performance rights were issued to employees under the Group’s Performance Rights Plan.
100% of the rights vested on 31 October 2022.
In November 2022, 161,414 Performance rights were issued to KMP, Mr Clark under the Group’s Performance Rights
Plan. 50% of the rights will vest on 30 June 2024 and the remaining rights will vest on 30 June 2025.
During FY23, 216,400 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 2024 and the remaining rights will vest on 30 June 2025.
The performance condition for the FY2023 Performance rights was continued employment with the Company for the
performance period.
The fair value of the Performance rights granted during Financial year 2023 was $2,947,423.
The fair value at the grant date was estimated using a Monte Carlo simulation (Issue 2 and 3), and a Black Scholes
option pricing model (Issue 1).
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
26 Oct 2021
$3.36
Nil
0%
0.54%
50%
1.00
31/10/2022
‐
$3.38
IIssssuuee 22
IIssssuuee 33
29 Nov 2022
$4.21
Nil
0%
3.18%
50%
2.00‐3.00
30/06/24 & 30/06/25
1.00‐2.00
$3.25
19 Jun 2023
$4.23
nil
0%
4.14%
50%
2.00 – 3.00
30/6/24 & 30/6/25
1.03‐2.03
2.72
In December 2022, 542,490 Oct 2021 Performance rights were exercised by employees.
There are 161,414 Performance rights remaining from Financial year 2023.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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Page | 60
81
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– SShhaarree bbaasseedd ppaayymmeennttss
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.
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.
TToottaall rreemmuunneerraattiioonn ppaaiidd ttoo ccuurrrreenntt aanndd ffoorrmmeerr KKMMPP ooff tthhee GGrroouupp
Short term benefits
Other service fees
Non‐cash benefits
Post‐employment benefits
Annual leave
Share based payments
Termination payments
UUllttiimmaattee PPaarreenntt
22002233
$$
22002222
$$
2,282,875
2,037,500
616,000
12,885
127,025
175,275
585,000
28,041
119,587
155,038
1,050,100
1,750,493
‐
‐
44,,226644,,116600
44,,667755,,665599
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
Crimson Metals Pty Ltd
CCoouunnttrryy
PPrriinncciippaall aaccttiivviittyy
Madagascar
Exploration Services
Madagascar
Commercial Property
Mauritius
Investment Holding
Australia
Australia
Australia
Investment Holding
Production
Exploration
22002233
100%
100%
100%
100%
100%
100%
22002222
100%
100%
100%
100%
100%
100%
Metrovex Pty Ltd
The subsidiaries noted above are all controlled entities and are dependent on the parent entity for financial support.
Exploration
Australia
100%
100%
TTrraannssaaccttiioonnss wwiitthh RReellaatteedd PPaarrttiieess
As at 30 June 2023, the net loans from the Parent to its subsidiaries totals $122,692,000 (2022: $131,882,000). This is
made up of loans to subsidiaries of $130,422,000 (2022: $139,620,000) with a provision for impairment of $7,730,000
(2022: $7,738,000).
82
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 61
CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
SSuubbssiiddiiaarriieess
Mining Services SARL
MGY Mauritius Ltd
Malagasy Graphite Holdings Ltd
Greenmount Resources Pty Ltd
Crimson Metals Pty Ltd
Metrovex Pty Ltd
LLooaann
$$’’000000
452
2,980
6,815
90,460
29,693
22
PPrroovviissiioonn ffoorr
iimmppaaiirrmmeenntt
CCaarrrryyiinngg vvaalluuee
$$’’000000
(452)
(463)
(6,815)
‐
‐
‐
$$’’000000
‐
2,517
‐
90,460
29,693
22
113300,,442222
((77,,773300))
112222,,669922
KMP remuneration has been included in the Remuneration Report section of the Directors Report for current KMP only.
There are no other transactions between related parties within the Group.
TToottaall rreemmuunneerraattiioonn ppaaiidd ttoo ccuurrrreenntt aanndd ffoorrmmeerr KKMMPP ooff tthhee GGrroouupp
2,282,875
2,037,500
The following information has been extracted from the books and records of the parent and has been prepared in
accordance with Australian Accounting Standards.
3311.. PPAARREENNTT EENNTTIITTYY DDIISSCCLLOOSSUURREESS
SSttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
AAsssseettss
Current assets
Non‐current assets
Total Assets
LLiiaabbiilliittiieess
Current liabilities
Non‐current liabilities
Total Liabilities
SShhaarreehhoollddeerrss’’ eeqquuiittyy
Issued capital
Reserves
Accumulated losses
Total Shareholders’ Equity
SSttaatteemmeenntt ooff ccoommpprreehheennssiivvee iinnccoommee
Net loss attributable to members of the parent entity
Other comprehensive income for the period
22002233
$$’’000000
4,706
177,222
181,928
1,003
865
1,868
203,422
4,188
(27,550)
118800,,006600
22002222
$$’’000000
4,385
167,203
171,588
3,176
904
4,080
202,997
7,149
(42,638)
116677,,550088
22002233
$$’’000000
22002222
$$’’000000
(10,514)
(13,388)
‐
‐
Total comprehensive loss for the year attributable to members of the parent entity
((1100,,551144))
((1133,,338888))
The Parent entity has not entered into any contractual commitments for the acquisition of property plant and equipment
at the date of this report.
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
KKeeyy eessttiimmaatteess aanndd jjuuddggeemmeennttss –– SShhaarree bbaasseedd ppaayymmeennttss
The Group measures the cost of equity‐settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted.
The fair value of options is determined by an internal valuation using a Black‐Scholes option pricing model, using the
assumptions detailed in Note 24.
The fair value of performance rights is determined by the share price at the date of valuation and consideration of the
probability of the market vesting condition being met.
3300.. RREELLAATTEEDD PPAARRTTYY DDIISSCCLLOOSSUURREESS
KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell RReemmuunneerraattiioonn
22002233
$$
616,000
12,885
127,025
175,275
22002222
$$
585,000
28,041
119,587
155,038
1,050,100
1,750,493
‐
‐
44,,226644,,116600
44,,667755,,665599
Short term benefits
Other service fees
Non‐cash benefits
Post‐employment benefits
Annual leave
Share based payments
Termination payments
UUllttiimmaattee PPaarreenntt
CCoonnttrroolllleedd EEnnttiittiieess
following table:
SSuubbssiiddiiaarriieess
Mining Services SARL
St Denis Holdings SARL
MGY Mauritius Ltd
Malagasy Graphite Holdings Ltd
Greenmount Resources Pty Ltd
Crimson Metals Pty Ltd
Metrovex Pty Ltd
TTrraannssaaccttiioonnss wwiitthh RReellaatteedd PPaarrttiieess
(2022: $7,738,000).
Capricorn Metals Ltd is the ultimate parent entity of the Group.
The consolidated financial statements include the financial statements of the Parent and the subsidiaries set out in the
OOwwnneerrsshhiipp ((%%))
CCoouunnttrryy
PPrriinncciippaall aaccttiivviittyy
Madagascar
Exploration Services
Madagascar
Commercial Property
Mauritius
Investment Holding
Investment Holding
Australia
Australia
Australia
Australia
Production
Exploration
Exploration
22002233
100%
100%
100%
100%
100%
100%
100%
22002222
100%
100%
100%
100%
100%
100%
100%
The subsidiaries noted above are all controlled entities and are dependent on the parent entity for financial support.
As at 30 June 2023, the net loans from the Parent to its subsidiaries totals $122,692,000 (2022: $131,882,000). This is
made up of loans to subsidiaries of $130,422,000 (2022: $139,620,000) with a provision for impairment of $7,730,000
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 62
83
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
3322.. DDEEEEDD OOFF CCRROOSSSS GGUUAARRAANNTTEEEE
Capricorn Metals Ltd and its subsidiaries are parties to a Deed of cross guarantee under which each company guarantees
the debts of the others.
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare a financial
report and Directors’ report under ASIC Corporations (Wholly‐owned Companies) Instrument 2016/785 issued by the
Australian Securities and Investments Commission.
Capricorn Metals Ltd
Greenmount Resources
Crimson Metals Pty Ltd
Metrovex Pty Ltd
Malagasy Graphite Holding Pty Ltd
The above companies represent a ‘closed group’ for the purpose of the Legislative instrument, and as there are no other
parties to the Deed of cross guarantee that are controlled by Capricorn Metals Ltd, they also represent the ‘extended
closed group’.
3333.. CCOOMMMMIITTTTMMEENNTTSS
The Group has physical gold delivery commitments and exploration expenditure commitments which are disclosed in
Notes 2 and 14 respectively.
3344.. CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
As at 30 June 2023 Capricorn Metals Ltd has bank guarantees totalling $386,000 (2022: $478,000), refer to Note 8.
As at 30 June 2023 the Group has a $4 million (2022: $10 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.
3355.. AAUUDDIITTOORRSS RREEMMUUNNEERRAATTIIOONN
AAmmoouunntt ppaayyaabbllee ttoo KKPPMMGG AAuussttrraalliiaa
Audit and review of financial statements – Group
Audit and review of financial statements – controlled entities
Audit and review of financial statements – controlled entities
22002233
$$
130,000
‐
113300,,000000
22002222
$$
130,000
15,000
114455,,000000
Amounts payable to other audit firms for the audit and review of the financial reports of subsidiary companies was $2,253
(2022: $1,688).
3366.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
There were no material events arising subsequent to 30 June 2023, 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.
3377.. 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 2023 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.
84
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CAPRICORN METALS ANNUAL REPORT 2023
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss (Continued)
FFoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002233
Capricorn Metals Ltd and its subsidiaries are parties to a Deed of cross guarantee under which each company guarantees
The subject of the principal amendments to the Standards are set out below:
AAAASSBB 22002200‐‐33 AAmmeennddmmeennttss ttoo AAuussttrraalliiaa AAccccoouunnttiinngg SSttaannddaarrddss –– AAnnnnuuaall IImmpprroovveemmeennttss 22001188‐‐22002200 && OOtthheerr AAmmeennddmmeennttss
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 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
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare a financial
report and Directors’ report under ASIC Corporations (Wholly‐owned Companies) Instrument 2016/785 issued by the
Australian Securities and Investments Commission.
3322.. DDEEEEDD OOFF CCRROOSSSS GGUUAARRAANNTTEEEE
the debts of the others.
Capricorn Metals Ltd
Greenmount Resources
Crimson Metals Pty Ltd
Metrovex Pty Ltd
Malagasy Graphite Holding Pty Ltd
closed group’.
3333.. CCOOMMMMIITTTTMMEENNTTSS
Notes 2 and 14 respectively.
3344.. CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
The above companies represent a ‘closed group’ for the purpose of the Legislative instrument, and as there are no other
parties to the Deed of cross guarantee that are controlled by Capricorn Metals Ltd, they also represent the ‘extended
The Group has physical gold delivery commitments and exploration expenditure commitments which are disclosed in
As at 30 June 2023 Capricorn Metals Ltd has bank guarantees totalling $386,000 (2022: $478,000), refer to Note 8.
As at 30 June 2023 the Group has a $4 million (2022: $10 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.
22002233
$$
‐
130,000
113300,,000000
22002222
$$
130,000
15,000
114455,,000000
3355.. AAUUDDIITTOORRSS RREEMMUUNNEERRAATTIIOONN
AAmmoouunntt ppaayyaabbllee ttoo KKPPMMGG AAuussttrraalliiaa
Audit and review of financial statements – Group
Audit and review of financial statements – controlled entities
Audit and review of financial statements – controlled entities
(2022: $1,688).
3366.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
Amounts payable to other audit firms for the audit and review of the financial reports of subsidiary companies was $2,253
There were no material events arising subsequent to 30 June 2023, 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.
3377.. 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 2023 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.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
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CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
CAPRICORN METALS ANNUAL REPORT 2023
Page | 64
85
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 2023 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, and
(c) At the date of this declaration there are reasonable grounds to believe that the members of the extended
closed group identified in Note 32 will be able to meet any obligations or liabilities to which there are, or may
become, subject by virtue of the deed of cross guarantee described in Note 32.
2.
3.
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 2023.
The Directors draw attention to the notes to the consolidated financial statements, which include a statement of
compliance with International Financial Reporting Standards.
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
7 September 2023
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
The Financial Report comprises:
Metals Ltd (the Company).
• Consolidated statement of financial position as at
In our opinion, the accompanying Financial Report of
30 June 2023.
the Company is in accordance with the Corporations
Act 2001, including:
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement
of changes in equity, and Consolidated statement
• giving a true and fair view of the Group’s financial
position as at 30 June 2023 and of its financial
of cash flows for the year then ended.
performance for the year ended on that date; and
• Notes including a summary of significant
• complying with Australian Accounting Standards
accounting policies.
and the Corporations Regulations 2001.
• 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.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our
audit of the Financial Report of the current period.
This matter was 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 this matter.
86
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 65
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.
Page I 66
CAPRICORN METALS ANNUAL REPORT 2023
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 2023 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, and
(c) At the date of this declaration there are reasonable grounds to believe that the members of the extended
closed group identified in Note 32 will be able to meet any obligations or liabilities to which there are, or may
become, subject by virtue of the deed of cross guarantee described in Note 32.
2.
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 2023.
3.
The Directors draw attention to the notes to the consolidated financial statements, which include a statement of
compliance with International Financial Reporting Standards.
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
7 September 2023
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 2023 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 2023.
• 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
accounting policies.
and the Corporations Regulations 2001.
• 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.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our
audit of the Financial Report of the current period.
This matter was 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 this matter.
CCAAPPRRIICCOORRNN MMEETTAALLSS LLTTDD AABBNN 8844 112211 770000 110055
Page | 65
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.
CAPRICORN METALS ANNUAL REPORT 2023
Page I 66
87
Gold forward restructure
Refer to Note 4 Net Finance Costs and Note 22 Other Financial Liabilities in the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group recognised a realised loss of $33.1 million
on partial termination of gold forwards (‘gold forward
restructure’) and a fair value loss of $83.2 million on
the remaining gold forwards, now recognised as
other financial liabilities at 30 June 2023.
The forward contracts previously qualified as future
inventory sales contracts, with sales recognised as
revenue at the time of sale, also known as the own
use exemption. The partial termination led to a
change in accounting for the remaining gold forwards
which are now recognised at fair value through profit
and loss.
The recognition of these losses was a key audit
matter due to:
•
•
•
the significance of the gold forward restructure
to the income statement and liabilities of the
Group;
the judgment required to assess the accounting
treatment of the remaining gold forwards; and
the judgement required in the valuation of the
remaining gold forwards as at 30 June 2023.
We involved valuation specialists to supplement our
senior team members in assessing this key audit
matter.
Our procedures included:
•
•
Compared the inputs of each gold forward to
confirmations obtained from counterparties;
Checked the partial termination of the gold
forwards to source documentation including bank
statements;
• With the assistance of technical specialists we
assessed the accounting treatment of the gold
forward restructure against accounting standard
requirements which resulted in the recognition of
the fair value loss;
• With the assistance of valuation specialists, we
independently estimated the fair values of the
Group’s gold forwards as at 30 June 2023 using
recognised market valuation methodologies and
inputs. We compared the Group’s valuations
recorded in the general ledger to these fair value
ranges; and
• We evaluated the appropriateness of the
classification and the presentation of the open
gold forwards and the related risk management
disclosures against accounting standard
requirements.
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, ESG 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.
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.
88
Page I 67
CAPRICORN METALS ANNUAL REPORT 2023 Gold forward restructure
Responsibilities of the Directors for the Financial Report
Refer to Note 4 Net Finance Costs and Note 22 Other Financial Liabilities in the Financial Report
The Directors are responsible for:
The key audit matter
How the matter was addressed in our audit
Standards and the Corporations Act 2001;
• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting
The Group recognised a realised loss of $33.1 million
Our procedures included:
on partial termination of gold forwards (‘gold forward
restructure’) and a fair value loss of $83.2 million on
the remaining gold forwards, now recognised as
other financial liabilities at 30 June 2023.
•
•
The forward contracts previously qualified as future
inventory sales contracts, with sales recognised as
revenue at the time of sale, also known as the own
use exemption. The partial termination led to a
change in accounting for the remaining gold forwards
which are now recognised at fair value through profit
and loss.
matter due to:
The recognition of these losses was a key audit
the significance of the gold forward restructure
to the income statement and liabilities of the
Group;
Compared the inputs of each gold forward to
confirmations obtained from counterparties;
Checked the partial termination of the gold
forwards to source documentation including bank
statements;
• With the assistance of technical specialists we
assessed the accounting treatment of the gold
forward restructure against accounting standard
requirements which resulted in the recognition of
the fair value loss;
• With the assistance of valuation specialists, we
independently estimated the fair values of the
Group’s gold forwards as at 30 June 2023 using
recognised market valuation methodologies and
inputs. We compared the Group’s valuations
recorded in the general ledger to these fair value
the judgment required to assess the accounting
treatment of the remaining gold forwards; and
ranges; and
the judgement required in the valuation of the
remaining gold forwards as at 30 June 2023.
We involved valuation specialists to supplement our
senior team members in assessing this key audit
requirements.
matter.
• We evaluated the appropriateness of the
classification and the presentation of the open
gold forwards and the related risk management
disclosures against accounting standard
•
•
•
Other Information
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
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, ESG 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.
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.
•
•
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; and
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.
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report of Capricorn
Metals Ltd for the year ended 30 June 2023,
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 12 to 22 of the Directors’ report for the year
ended 30 June 2023.
33 to 43
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
7 September 2023
Page I 67
CAPRICORN METALS ANNUAL REPORT 2023
Page I 68
89
AASSXX aaddddiittiioonnaall iinnffoorrmmaattiioonn
AASSXX aaddddiittiioonnaall iinnffoorrmmaattiioonn
As at 18 September 2023 the following information applied:
As at 18 September 2023 the following information applied:
11..
SSeeccuurriittiieess
11..
SSeeccuurriittiieess
aa))
The voting rights attached to the ordinary shares are governed by the Constitution.
aa))
FFuullllyy ppaaiidd oorrddiinnaarryy sshhaarreess
The voting rights attached to the ordinary shares are governed by the Constitution.
FFuullllyy ppaaiidd oorrddiinnaarryy sshhaarreess
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 Performance rights have any voting rights.
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 Performance rights have any voting rights.
SSiizzee ooff hhoollddiinngg
SSiizzee ooff hhoollddiinngg
1 - 1,000
1,001 - 5,000
5,001 - 10,000
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
10,001 - 100,000
100,001 and over
100,001 and over
TToottaall
TToottaall
NNuummbbeerr ooff
SShhaarreehhoollddeerr
ss
NNuummbbeerr ooff
NNuummbbeerr ooff
SShhaarreehhoollddeerr
SShhaarreess
ss
NNuummbbeerr ooff
PPeerrcceennttaaggee
%%
SShhaarreess
PPeerrcceennttaaggee
%%
1,447
1,085
350
593
159
1,447
630,599
1,085
2,870,310
350
2,742,258
0.17%
630,599
2,870,310
0.76%
0.73%
2,742,258
19,299,502
593
350,415,507
159
19,299,502
5.13%
350,415,507
93.21%
33,,663344
375,958,176
33,,663344
375,958,176
100.00%
There are 197 Shareholders with less than a marketable parcel at a price of $4.41, totalling 7,406 shares.
There are 197 Shareholders with less than a marketable parcel at a price of $4.41, totalling 7,406 shares.
bb))
TToopp 2200 sshhaarreehhoollddeerrss
TToopp 2200 sshhaarreehhoollddeerrss
bb))
NNaammee
NNaammee
HSBC Custody Nominees (Australia) Limited
HSBC Custody Nominees (Australia) Limited
Citicorp Nominees Pty Limited
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
J P Morgan Nominees Australia Pty Limited
Samoz Pty Ltd
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