ANNUAL
REPORT
CAPRICORN METALS LTD
ABN 84 121 700 105
Financial Report for the year ended 30 June 2024
Directors
Mark Clark
Executive Chairman
Mark Okeby
Non-Executive Director
Myles Ertzen
Non-Executive Director
Bernard De Araugo
Non-Executive Director
Jill Irvin
Non-Executive Director
Company Secretary
Kim Massey
Registered Office & Principal Place of Business
Level 3, 40 Kings Park Road
WEST PERTH WA 6005
Telephone:
+61 8 9212 4600
Email:
enquiries@capmet.com.au
Website:
capmetals.com.au
Share Registry
Automic Pty Ltd
Level 2, 191 St Georges Terrace
PERTH WA 6000
Telephone:
+61 2 9698 5414 or 1300 288 664
Auditors
KPMG Perth
235 St Georges Terrace
PERTH WA 6000
Securities Exchange Listing
Capricorn Metals Ltd shares are listed on the
Australian Securities Exchange (ASX).
Code
CMM
Contents
Chairman’s report
2
Environmental, social and governance report
10
Directors’ report
30
Remuneration report (Audited)
40
Auditor’s independence declaration
51
Consolidated statement of profit or loss and other comprehensive income
52
Consolidated statement of financial position
53
Consolidated statement of changes in equity
54
Consolidated statement of cash flows
55
Notes to the consolidated financial statements
56
Directors' declaration
93
Independent auditor’s report
94
ASX additional information
98
Chairman’s report
Dear Shareholder
As we reflect on another successful year for Capricorn
Metals, I am pleased to share the significant progress we
have made in 2024. It has been a year marked by operational
success, strategic growth, and continued value creation for
our shareholders. These achievements reinforce Capricorn’s
position as an industry leading low-cost Australian gold
producer, with a promising outlook for growth.
In its third year of operations, our cornerstone Karlawinda Gold
Project (‘KGP’) delivered record cash flow from operations and
EBITDA. Meanwhile, at the Mt Gibson Gold Project (‘MGGP’),
we made substantial progress with a significant upgrade to the
ore reserve, which now stands at 1.83 million ounces. We are
committed to developing the project, investing over $19 million
in early construction works during the year.
KGP produced 113,007 ounces of gold, in line with revised
guidance, at an all-in sustaining cost of $1,421 per ounce,
despite the impacts of weather events and industry-wide cost
pressures. With record gold sales, the project generated over
$150 million in operating cash flow, contributing to a record
EBITDA of $168.3 million. Over three years of operations,
the KGP has produced more than 350,000 ounces of gold
and delivered $445 million in operating cash flow. Following
an increase in the KGP gold reserve to 1.43 million ounces,
we have initiated a study to consider expanding the plant’s
processing capacity by 2-2.5 million tonnes per annum.
The consistent cash flow generation at Karlawinda has
strengthened Capricorn’s net cash position to $69.3 million,
enabling a $32.0 million investment in exploration. A total
of 159,886 metres were drilled across the KGP and MGGP
tenement packages, with over 100,000 metres drilled at
Mt Gibson, underpinning the significant upgrade to the ore
reserve. The updated prefeasibility study, completed in April
2024, reaffirmed MGGP as a large-scale, robust project with
projected annual gold production exceeding 150,000 ounces
and a mine life of over 10 years.
Our ongoing investment in early construction works
demonstrates our commitment to accelerate project design
and long lead purchasing in parallel with progressive receipt of
development and environmental permits where it is expected
to be advantageous to the ultimate development schedule and
cost to do so.
In June 2024, the Company took the opportunity to close-out
our gold hedging commitments for FY25, repeating a strategy
first initiated in FY23. A total of 52,000 ounces of gold hedging
contracts were closed for a cost of $69.6 million in FY24, which
also included the purchase of gold put options at A$3,432 per
ounce over the same period. This strategy safeguards against
downside risk while providing full exposure to any upside in the
A$ gold price during FY25. Since the close-out, the gold price
has risen by over A$300 per ounce, illustrating the potential
value of this decision in just four months.
As we look to 2025 and beyond, we remain focussed on
maintaining consistent production and cash flow generation at
KGP, advancing the high-quality MGGP, and continuing strong
shareholder returns through disciplined financial management.
I would like to thank the Board, our management team, and all
employees for their hard work and dedication during the year.
I also wish to express my appreciation to our shareholders for
your ongoing support of Capricorn as we continue to strive to
build a high quality, multi-mine Australian gold business that
delivers long-term value for all stakeholders.
Mark Clark
Executive Chairman
2
CAPRICORN METALS
Record EBITDA of
$168.3m up from
$161.9m in FY23.
Net cash increased by
$13.4m to $69.3m
(after payment of $69.6m to partially close out hedge book)
Net profit after tax of
$87.1m
Record revenue of
$359.8m
Record operating
cashflow from
Karlawinda of
$158.2m
Gold production at
Karlawinda of
113,007oz
at AISC of
$1,421/oz
Group Ore Reserves
increased by
565,000oz
to
3.26moz
3
CAPRICORN METALS
Highlights | 2024
Corporate
+
Record revenue of $359.8m includes the sale of 112,853
ounces of gold at an average realised price of $3,185
per ounce.
+
Profit after tax was $87.1m, up from $4.4 million in FY23
which was affected by gold hedge closure costs and hedge
accounting adjustments.
+
Underlying profit after tax (before gold hedge closure cost
and hedge accounting adjustments) of $87.1m was in line
with the FY23 result of $85.8m.
+
Strong cashflow generation continued at the KGP with
record cashflow from operating activities of $158.2 million
and record EBITDA of $168.3 million.
+
Net cash position increased by $13.4m to $69.3m (FY23:
net cash $55.9m) after payment of $69.6m to close-out
52,000 ounces of the hedge book (and buy gold put
options), $32.0m in exploration expenditure and feasibility
studies at KGP & MGGP and $19.4m of early spend against
the $260 million capital estimate at MGGP.
Karlawinda Gold Project (KGP)
Operations
+
Gold production of 113,007 ounces for the year (FY23:
120,014oz) despite the significant impact of rainfall on
operations in the March 2024 quarter.
+
The all-in-sustaining-cost (‘AISC’) of gold production
for FY24 at Karlawinda of $1,421/oz (FY23: $1,208/oz)
continues to be amongst the lowest in the Australian
gold industry.
+
Cashflow from operating activities of $158.2m, up 4%
from FY23 reflects the strong operational and financial
performance of the KGP.
Financial results
FY24
$’000
FY23
$’000
Change
Revenue
359,834
320,840
38,994
EBITDA
168,330
161,925
6,405
Gross Profit
157,014
149,270
7,744
Profit before tax
125,687
9,166
116,521
Profit after tax
87,138
4,399
82,739
Underlying profit after tax
87,138
85,796
1,342
Earnings per share (cents)
23.13
1.18
21.95
EBITDA margin
46.8%
50.5%
(3.7%)
Cashflow from operating activities
158,184
152,560
5,624
Operating results
FY24
FY23
Ore mined
BCM (000’s)
2,023
2,443
Waste mined
BCM (000’s)
10,546
10,129
Operating strip ratio
w:o
4.45
4.15
Ore mined
tonnes (000’s)
5,276
5,807
Ore milled
tonnes (000’s)
4,063
4,219
Head grade
g/t
0.97
0.96
Recovery
%
90
93
Gold production
ounces
113,007
120,014
All-in-sustaining-
cost (AISC)
$/oz
1,421
1,208
Capricorn expects to continue its strong operational performance in FY25 with gold production guidance of 110,000-120,000 ounces
at an AISC range of $1,370-$1,470 per ounce and growth capital of $10-20 million.
4
CAPRICORN METALS
Exploration
+
During the year a total of 430 holes for 57,829 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.
+
A reserve conversion drilling programme of 24,063 metres
was also completed, including at Berwick, to allow the
conversion of Inferred Resources to Indicated category
which resulted in a significant update to the KGP Ore
Reserve Estimate in August 2024 to 1,428,000 ounces.
+
Regional exploration programmes consisting of drilling, soil
surveys rock chipping, heritage surveys were undertaken
during the year.
+
Rock chip sampling at Jim’s Vein returned multiple high
grade results including 240g/t, 228g/t and 91g/t.
+
In addition, a 2,098-line km regional airborne gravity
gradiometer and gravity survey was completed during the
year. The survey identified geological settings prospective
for Bibra style and intrusion related mineralisation including
multiple gravity-high anomalies identified along magnetic
corridors in proximity to known gold occurrences.
+
An extensive, regional drilling programme comprising
25,000m of Aircore and 18,000m of RC drilling
commenced in Q1FY25. The drill targets are interpreted to
be in similar geological settings prospective for Bibra style
and intrusion related mineralisation and include multiple
gravity-high and surface sample anomalies along magnetic
corridors with known gold occurrences.
Karlawinda regional and near mine exploration targets
5
CAPRICORN METALS
Highlights | 2024
Details of the drilling programmes undertaken during the year are set out below.
Near mine
Exploration – Drilling programmes
Exploration drilling was completed at Vedas, Belhaven and Carnoustie, with further drilling expected to continue into FY25.
Exploration – Drilling results
Best results received from drilling in FY24 included:
+
7 metres @ 13.53g/t from 144 to 151m
+
3 metres @ 6.82g/t from 80 to 83m
+
10 metres @ 6.61g/t from 137 to 147m
+
4 metres @ 2.64g/t from 72 to 76m
+
2 metres @ 17.11g/t from 134 to 136m
+
12 metres @ 0.79g/t from 176 to 188m
Resource conversion – Drilling programmes
Resource conversion drilling programme was completed across the Bibra, Southern Corridor Vedas and Berwick.
Resource conversion – Drilling results
Best results received from drilling in FY24 included:
+
7 metres @ 54.10g/t from 54 to 61m
+
6 metres @ 23.89g/t from 100 to 106m
+
4 metres @ 29.69g/t from 82 to 86m*
+
5 metres @ 23.64g/t from 39 to 44m
+
4 metres @ 20.59g/t from 266 to 270m*
+
34 metres @ 1.50g/t from 59 to 93m
* intercept is outside of current resource pit shell
Regional
Exploration – Drilling programmes
Regional drilling was completed at Carrot, Central Lode, Donomore, Jamie Well East and Fofar prospects during the year.
Exploration – Drilling results
Best results received from drilling in FY24 included:
+
5 metres @ 4.72g/t from 89 to 94m
+
8 metres @ 5.90g/t from 27 to 35m
+
18 metres @ 0.87g/t from 90 to 108m
+
11 metres @ 1.87g/t from 30 to 41m
Mineral Resources and Ore Reserves
+
Updated Mineral Resource Estimate (‘MRE’) of 98.6 million tonnes at 0.7g/t for 2.25 million ounces of gold, an increase of
176,000 ounces, after taking into account mining depletion, from the March 2023 MRE.
+
Extensive drilling campaign at Bibra, Southern Corridor and Berwick has contributed to a significant increase in the Ore Reserve
Estimate (‘ORE’) to 1,428,000 ounces of gold.
+
Updated ORE of 57.7 million tonnes at 0.8g/t Au for 1.43 million ounces of gold as at 30 June 2024, an increase of 333,000
ounces after taking into account mining depletion, from the March 2023 MRE.
6
CAPRICORN METALS
Mt Gibson Gold Project (MGGP)
Exploration
+
During the year a total of 1,053 holes for 102,057 metres were drilled across the MGGP tenement package.
+
Exploration activities at the MGGP focussed on extensional and infill drilling as well as near mine exploration at prospects
immediately adjacent to the Mt Gibson trend. Resource drilling has continued under the S2, Orion and Lexington pits and the
unmined areas across both the Mt Gibson and Taurus trends.
+
During the year, a diamond drilling programme was completed to test the underground mining potential under the Orion and
Lexington pits. Drilling returned broad high-grade intercepts demonstrating that mineralisation extends significantly at depth and
shows the potential for underground mine operations.
+
Continued resource extension and near mine exploration drilling will continue in FY25 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.
+
A follow up 4,500 metre underground focussed diamond programme has been designed and commenced in Q1FY25.
Details of the drilling programmes undertaken during the year are set out below.
Near mine
Exploration – Drilling programmes
Exploration drilling was completed at the Comanche, Lexington, Saratoga and Orion North prospects as well as the historic
mineralised heap leach dump.
Exploration – Drilling results
Best results received from drilling in FY24 included:
+
12 metres @ 3.73g/t from 94m to 106m
+
2 metres @ 5.00g/t from 136m to 138m
+
5 metres @ 4.88g/t from 0 to 5m
+
11 metres @ 3.27g/t from 0 to 11m
+
6 metres @ 2.83g/t from 0 to 6m
+
11 metres @ 1.04g/t from 0 to 11m
Resource conversion – Drilling programmes
A drilling programme of 41,635 metres of extensional and infill resource drilling was completed during the year.
Resource conversion – Drilling results
Best results received from drilling in FY24 included:
+
2 metres @ 37.13g/t from 62 to 64m
+
3 metres @ 23.70g/t from 74 to 77m
+
9 metres @ 8.10g/t from 134 to 143m
+
19 metres @ 5.71g/t from 139m to 158m
+
18 metres @ 5.52g/t from 230 to 248m*
+
30 metres @ 5.00g/t from 254 to 284m
+
20 metres @ 4.50g/t from 284m to 304m*
+
19 metres @ 4.42g/t from 276 to 295m
+
20 metres @ 3.80g/t from 218m to 238m
+
19 metres @ 3.75g/t from 177 to 196m*
* intercept is outside of current resource pit shell
Regional
Exploration – Drilling programmes
Exploration drilling was completed at the Ace High, Big Whisky, Capricorn, Gunslinger Mexicola and Sundance prospects during
the year.
Exploration – Drilling results
Best results received from drilling in FY24 included:
+
3 metres @ 30.13g/t from 56 to 59m#
+
16 metres @ 17.16g/t from 32 to 48m#
+
13 metres @ 12.49g/t from 24 to 37m#
+
16 metres @ 10.57g/t from 24 to 40m#
+
12 metres @ 8.07g/t from 42 to 54m#
+
12 metres @ 3.86g/t from 16 to 28m#
+
12 metres @ 3.86g/t from 48 to 60m#
+
12 metres @ 3.35g/t from 16 to 28m#
+
12 metres @ 2.74g/t from 40 to 52m#
+
12 metres @ 1.78g/t from 60 to 72m#
# Regional 4m Composite drilling
7
CAPRICORN METALS
Underground potential
Underground – Drilling programmes
Diamond drilling in FY24 under the Orion and Lexington pits has returned broad high-grade gold intercepts demonstrating that
mineralisation extends significantly at depth. Results indicate the potential for underground mining operations.
Underground – Drilling results
Best results received from drilling in FY24 included:
+
7 metres @ 17.44g/t from 251 to 258m
+
12 metres @ 6.63g/t from 378 to 390m*
+
5.43 metres @ 7.40g/t from 359.57 to 365m*
+
22 metres @ 4.82g/t from 229 to 251m
+
8 metres @ 4.71g/t from 221 to 229m
+
7.10 metres @ 4.64g/t from 302.90 to 309m*
+
14.56 metres @ 3.99/t from 310 to 324.56m
+
12 metres @ 3.22g/t from 298 to 310m
+
18 metres @ 3.04g/t from 294 to 312m*
+
14 metres @ 2.23g/t from 252 to 266m
* intercept is outside of current resource pit shell
Highlights | 2024
8
CAPRICORN METALS
Mt Gibson Gold Project – accommodation village installation
Mineral Resources and Ore Reserves
+
Updated MRE of 125.1 million tonnes at 0.8g/t for 3.31 million ounces of gold, an increase of 560,000 ounces from the
March 2023 MRE.
+
Updated ORE of 61.6 million tonnes at 0.9g/t Au for 1.83 million ounces of gold completed in April 2024, an increase of
380,000 ounces from the Maiden ORE.
Project approvals
+
In December 2023, Capricorn referred the development of the MGGP to the Commonwealth Department of Climate Change,
Energy, the Environment and Water (DCCEEW) under the Environmental Protection and Biodiversity Conservation Act 1999
(EPBC Act), based on comprehensive environmental assessment work over the last two and a half years.
+
In June 2024, Capricorn received advice from DCCEEW relating to the assessment of the MGGP referral. As expected, the
project will be assessed as a Controlled Action via Public Environment Report, with an issue of guidelines for the Report to be
completed by Capricorn.
+
In May 2024 Capricorn lodged the referral of the MGGP to the Environmental Protection Authority under Part IV of the WA EP
Act to commence the WA assessment process, which will run parallel with the Commonwealth assessment.
Early construction works
+
During the year, the installation of 400-room accommodation units and associated infrastructure buildings required for the
operation commenced.
+
Tenders were issued for mining services, power supply and process plant design contracts with a number of site visits
conducted for potential service providers.
+
Capricorn’s strategy is to expedite the accommodation village construction, project design and long lead purchasing in parallel
with progressive receipt of development and environmental permits where it is expected to be advantageous to the ultimate
development schedule and cost to do so.
9
CAPRICORN METALS
Environmental, social and governance report
Zero environmental incidents
in FY24
Over 84% of supervisors completed
safety leadership training
Strengthened governance
framework with new social and
environmental policies
Zero Lost Time Injury
safety incidents in FY24
Updated our comprehensive water
operating strategy at KGP
Over 88% procurement spend
from Western Australia
Established a Risk Management
& Sustainability Committee
Completed 13 cultural heritage
surveys with our Traditional Owners
Delivered our second Capricorn
ESG Report and expanded
baseline sustainability data
FY24 Sustainability Achievements
OUR SUSTAINABILITY
APPROACH & SCOPE
We are pleased to share our FY24 Environmental, Social
and Governance (“ESG”) Report, which brings together the
sustainability topics and performance data that are material
to Capricorn and its stakeholders. The report covers our
Karlawinda Gold operations in the Pilbara (“KGP”), our
Mt Gibson development project in the Murchison (“MGGP”)
and our corporate head office in Perth (“HO”).
This year we have significantly expanded our baseline ESG
data, incorporating our business strategies, stakeholder
priorities and regulatory updates in our reporting. 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.
This report is prepared with guidance from the Global Reporting
Initiative (“GRI”) 2021 Standards and covers the period from
1 July 2023 to 30 June 2024. The report has been approved
by the Capricorn’s Board of Directors and should be read in
conjunction with the financial and governance information from
this Annual Report.
STAKEHOLDER ENGAGEMENT
Capricorn is committed to open and constructive
communication with our different internal and external
stakeholders. They are critical to the success of our projects
and form the basis for our social license to operate. As part of
our FY24 Materiality Review, we mapped our key stakeholder
groups and summarise the purpose and priorities of our
engagement in the table below. Depending on the purpose,
we communicate with our stakeholders using formal and
informal channels.
10
CAPRICORN METALS
Stakeholder Group
Priorities
Engagement
Internal stakeholders
Employees and contractors
Safe, healthy and happy workplace;
employee retention and development;
professional development and training
opportunities
Regular communication and consultation;
Training and development programmes;
Social function programme
Board
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
External stakeholders
Shareholders & investors
Return on investment and equity; Sensible
allocation of capital and management of risk
ASX releases, investor briefings, road
shows, presentations, annual, half yearly
and quarterly financial reports, direct
engagement, AGM, Annual Report
Nyiyaparli, Ngarlawangga, Badimia
Traditional Owners and their communities
Respect for local customs and laws; cultural
heritage preservation; land agreements;
land care
Face-to-face meetings, cultural surveys
and mapping, Heritage, Land Access and
Compensation Agreements
Local communities
Social investment with local community;
environmental impact and performance;
employment; access to pastoral land
Community engagement and consultation;
direct engagement to link resources with
opportunities; Whistleblower Policy
State, federal government and local shires
Regulatory compliance with laws and
policies; land access and approvals
Direct engagement and consultation
Regulatory agencies
Compliance reporting
Regular submission of data and requests for
information; direct engagement
Financial providers and analysts
Transparent reporting of company
updates and ESG program; prudent risk
management; financial performance;
governance
Regular investor presentations; annual, half
yearly and quarterly financial reports; direct
engagement; ASX releases
Suppliers
Quality goods & services; prompt payment;
responsible sourcing
Direct engagement; communications;
training
Pastoralists
Social investment with local community;
environmental impact and performance;
access to pastoral land
Community engagement; direct
engagement; Whistleblower Policy
and Agreements.
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
11
CAPRICORN METALS
MATERIALITY ASSESSMENT
As a follow up to our first materiality assessment last year,
we conducted a review of our material priorities in FY24 to
re-evaluate material topics and identify any new ones.
According to the Global Reporting Initiative, material issues
are those topics that reflect its most significant impacts on the
economy, environment and people.
The Company’s ESG project team, comprising members of
senior management, the Risk Management and Sustainability
Committee (“RMSC”), the Board and external ESG consultants,
considered sustainability risks and opportunities across
our business, aligned with our strategic focus and reporting
obligations. The ESG team prioritised the most important topics,
with the results reviewed and approved by Capricorn’s Risk
Management and Sustainability Committee and the Board.
MATERIAL TOPICS
Our top nine material topics as selected by Capricorn for reporting
in FY24 are listed in the pillars below. These topics reflect the
current focus of the company and inform the content of this report.
Identify
A list of potential
material topics were
compiled based on our
understanding of material
risks, industry benchmarks,
company strategic
focus and stakeholder
expectations.
Prioritise
Internal stakeholders rated
the importance of each topic.
Results were then used
to formulate a materiality
boundary with prioritised
material topics under two
dimensions: importance to
business and importance
to our stakeholders.
Validate
Senior leaders and the
Board reviewed and
validated the outcomes of
the materiality assessment.
Review
Material topics will
be reviewed on an
annual basis.
Health, Safety & Wellbeing
Economic Performance
Business Ethics & Governance
People – Attraction & Retention
Biodiversity & Environmental
Approvals
Climate Change & Emissions
Cultural Heritage
Compliance & Regulation
Diversity & Equal Opportunity
Waste Management & Recycling
Local Community
Tailings
Closure Preparedness
ENVIRONMENT
Climate Change & Emissions
Biodiversity & Environmental Approvals
Water Management
SOCIAL
Health, Safety & Wellbeing
People – Attraction & Retention
Cultural Heritage
Diversity & Equal Opportunity
GOVERNANCE
Business Ethics & Governance
Economic Performance
Environmental, social and governance report
12
CAPRICORN METALS
REPORTING STANDARDS
Capricorn has chosen to incorporate disclosure guidance
from the Global Reporting Initiative Standards, as well as
metrics from the GRI principles of organisational context,
structure and materiality assessment and prioritisation.
ENVIRONMENT
Material topic: Biodiversity and
Environmental Approvals
We recognise that our operations, particularly through clearing,
ground disturbance, vehicle movement and waste disposal
can have a significant impact on the ecosystems within our
tenement areas in the Pilbara (KGP) and Murchison (MGGP).
Our environmental stewardship is guided by our Environment,
Community and Heritage Policy and Environment Management
System to address and avoid any potential significant impacts
on the natural environment, including waterways, vegetation and
fauna species. There were no material environmental incidents
in FY24.
Environmental Management System
Capricorn implements an Environmental Management System
(“EMS”) to manage environmental impacts and to identify and
address any compliance risks 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 obligations across its projects.
As well as managing the risk of unintended or unnecessary
environmental impact, the EMP also seeks to reduce or
eliminate the business risk associated with poor environmental
outcomes at its operations.
The EMS is aligned with ISO14001:2015, the international
standard for environmental management systems, and is
continuously updated and amended to ensure:
+
Capricorn’s objectives and targets are met.
+
Legal obligations are understood and adhered to.
+
Our environmental management activities are
clearly defined.
+
A commitment to successful environmental management
is demonstrated.
+
Environmental improvement is driven using the
Plan-Do-Check-Act (“PDCA”) model.
Global Reporting
Initiative
Leadership
Performance
Evaluation
Support and
Operation
Improvement
Planning
Plan
Check
Act
Do
13
CAPRICORN METALS
Vegetation
The biannual Groundwater Dependant Vegetation (“GDV”)
assessment at four locations on the Weelarrana pastoral
station adjacent to the KGP was again undertaken in FY24.
A new site was added to the programme to monitor any
potential threatened species which could be affected by
dewatering activity in the surrounding area.
The results of the assessment indicated that the project’s
activities were unlikely to impact the surrounding
vegetation habitat.
The MGGP weed management plan was actioned with
targeted spraying for Ruby Dock in September 2023.
A similar programme planned for October 2024.
Fauna
We continue to train our employees and contractors in
measures to protect native fauna at our projects. This includes
an environmental and cultural awareness induction and certified
snake and fauna handler training.
Rehabilitation
During the year we continued a topsoil rehabilitation inspection
programme involving 20 stockpile points spread across the
KGP, including the Tailings Storage Facility (“TSF”), waste dump,
processing plant, run-of-mine (“ROM”) and aerodrome.
The programme consists of the biannual inspection of the
locations which aims to evaluate changes of pioneer and
succession vegetation species in the stockpiles and verify
the good condition of the soils.
An extra 9,755m³ of topsoil was identified and stockpiled during
the reporting period taking the total topsoil available
for rehabilitation at closure to 602,048m³.
Rehabilitation Performance
During the year there was an additional 51ha of land disturbed at our projects taking the total land area to be rehabilitated to 1,656ha.
An area totalling 205ha is currently under rehabilitation representing 12% of total land disturbance at our operations.
Land disturbance & rehabilitation
Unit
KGP
MGGP
Total
Land disturbed at the beginning of the reporting period
Hectare
1,117
692
1,809
Newly disturbed land
Hectare
35
16
51
Gross land disturbed at the end of the reporting period
Hectare
1,152
708
1,860
Newly rehabilitated land to agreed end use
Hectare
0
0
0.00
Total land rehabilitated to date
Hectare
142
63
205
Total current land disturbed (for future rehabilitation)
Hectare
1,010
646
1,656
Total land disturbance rehabilitated to date
%
12
9
12
Environmental, social and governance report
14
CAPRICORN METALS
Tailings Storage Facility
Capricorn operates a TSF at KGP under a licence with
DWER and in accordance with the KGP TSF Operation
Management Plan.
The KGP TSF Operation Management Plan outlines procedures
for the controlled discharge of tailings and recovery of
supernatant to ensure safe and efficient storage of tailings,
in accordance with the TSF design and its regulatory and
corporate policy obligations.
In addition, the TSF is inspected daily and is subject to annual
audits by external specialists. The FY24 audit concluded that
the facility was being well operated, managed and monitored
adequately in accordance with site operating licence conditions
and tenement requirements.
Waste Management & Recycling
We encourage responsible waste management at all
our operations.
At the KGP the following initiatives were implemented:
+
A reduction of disposable paper cups and cutlery use
by providing reusable cups and cutlery to all Capricorn
personnel on site.
+
The continuation of our recycling programme for
cardboard, aluminium cans, PET bottles and glass reduced
our waste volumes and has raised over $28,000 for our
designated charity, the Perth Children’s Hospital (PCH).
Capricorn’s cardboard recycling initiative also prevented
18 tonnes ending up as landfill.
Mt Gibson Gold Project Approvals
In FY24, the Company continued to advance the environmental
approvals process for the MGGP, working collaboratively with
regulatory bodies and environmental consultants to ensure the
project adhered to rigorous environmental standards.
The development of the MGGP was referred to the
Commonwealth Department of Climate Change, Energy, the
Environment and Water (“DCCEEW”) under the Environmental
Protection and Biodiversity Conservation Act 1999 (EPBC Act),
based on comprehensive environmental assessment work
completed over the last two and a half years. As expected,
the DCCEEW advised that the project will be assessed as a
Controlled Action via a Public Environmental Report, with an
issue of guidelines for the report to be completed by Capricorn.
Additionally, the referral of the MGGP was lodged to the
Environmental Protection Authority (EPA) under Part IV of
the Western Australia EP Act to initiate the WA assessment
process, which will run parallel with the Commonwealth
assessment. The referral was validated by the EPA and will be
assessed based on the referral information.
Special attention has been given to minimising the project’s
footprint on local ecosystems, protecting native flora and fauna,
and ensuring sustainable water use throughout the approvals
process. These efforts demonstrate Capricorn’s ongoing
commitment to environmental stewardship and responsible
project development.
FY25 Focus
+
Rehabilitation of two sections of waste dumps at KGP.
+
Continue with GDV assessments, including the potential
for a new Groundwater Dependent Ecosystem (“GDE”)
assessment.
+
Completion of a KGP Expansion Study to consider the
merits of accelerating the mining schedule by delivering
an increase in direct ROM ore. The expansion study has
the potential to minimise land disturbance and reduce
emissions and energy from the use of fossil fuels by
limiting double handling of ore. Studies include the
consideration and assessment of renewables as part
of energy generation.
+
Continue to work collaboratively with regulatory bodies to
advance environmental approvals at the MGGP.
Material topic: Water Management
Water is a vital natural resource and an essential requirement
for ore processing. Responsible water management is a priority
at Capricorn. We understand the importance of conserving our
water use and minimising any impact from our operations on this
precious resource.
Our commitment to responsible water stewardship and
sourcing are outlined in our Environment, Community and
Heritage Policy and Environmental Management System.
At KGP, we also abide by our Water Operating Strategy, while at
MGGP all water is currently being sourced from third parties.
Water Operating Strategy
This year our Water Operating Strategy at KGP was updated
and submitted to the Department of Water and Environmental
Regulation (“DWER”) in May 2024 and is currently being
implemented.
The conceptual water balance governs water usage at KGP.
We continuously monitor programmes at our operations
to assess potential impacts, evaluate and refine the
hydrogeological conceptualisation and inform modelling
of the groundwater regime.
15
CAPRICORN METALS
Water management performance Karlawinda Project
Withdrawn water
Unit
HO
KGP
MGGP
Total
Surface water withdrawn
Ml
0
0
0
0
Borefield water withdrawn
Ml
0
3,151.4
0
3,151.4
De-watering
Ml
0
180.2
0
180.2
Third party water withdrawn
Ml
0.4
0
3.6
4
Total
Ml
0.4
3,331.6
3.6
3,335.6
Recycled water
Unit
HO
KGP
MGGP
Total
Water reused – reverse osmosis
Ml
0
52.4
0
52.4
Other
Ml
0
0
0
0
Total
Ml
0
52.4
0
52.4
Reused water
Unit
HO
KGP
MGGP
Total
Tailing decant return
Ml
0
2,457.6
0
2,457.6
Other
Ml
0
0
0
0
Total
Ml
0
2,457.6
0
2,457.6
Environmental, social and governance report
The specific objectives of our monitoring programme includes:
+
Early identification of potentially adverse
environmental impacts.
+
Assessment and refining of the hydrogeological
conceptualisation.
+
Understanding and communicating the impact of the
operation on the groundwater regime.
Water Efficiencies
KGP was able to recover 42% of the water sent to the TSF
in FY24. We have ‘low-to-no’ risk from water stress in our
operational areas at KGP because we do not compete with
others for water allocation, nor do we use surface water in
our operations.
+
Other practices undertaken to ensure the efficient
use of water around site, include:
+
Water recovery and recycling from vehicle
maintenance activities.
+
The treatment of washdown water to be re-used
for dust suppression purposes.
+
Daily visual inspections of TSF delivery and water return
pipes and containment corridor for any visible leakage
or damage.
+
Weekly inspections of all pipelines, including regular
maintenance and emphasis on correct operation of
borefield infrastructure.
+
Review of site water balance to identify opportunities to
improve water use efficiencies if significant change occurs
to operational demand or overall water use.
+
Water use efficiency initiatives are continually reviewed and
reported on in the annual monitoring reports.
Water Management Performance
There were no incidents or compliance breaches with respect
to water management in FY24.
During the year 3,335.6Ml of water was consumed across our
operations. Recycled and reused water accounted for 43% of
total water consumption.
The consumption at KGP was within its licensed volume of
4,000Ml per year.
16
CAPRICORN METALS
Material topic: Climate Change and Emissions
As the global climate shifts, we are committed to reducing our
carbon footprint by addressing emissions and adapting our
business practices to support a low-carbon future.
We manage these risks through our Risk Management and
Sustainability Committee, whose roles and responsibilities
are outlined in our Risk Management & Sustainability Charter,
available on our website.
We aim to align our climate risk disclosure with the proposed
Australian Sustainability Reporting Standards. The new
Standards will incorporate the recommendations of the
Taskforce for Climate-Related Financial Disclosures (“TCFD”)
and cover key areas including governance, strategy, risk
management and metrics and targets.
Emissions & Energy Efficiencies
Emissions and energy at our operations are generated from two
main sources of non-renewable fuels, gas and diesel.
At the KGP, Capricorn has chosen to utilise gas over diesel as a
primary energy source to minimise greenhouse gas emissions.
This approach is also planned at the MGGP.
During the year optimisation studies continued at the MGGP to
maximise operational efficiencies in plant design, pit design and
waste material movement with the aim of reducing power and
diesel consumption.
The studies are also exploring the use of solar array and/or wind
turbines to provide an economically viable contribution from this
type of renewable power.
Dust Management
Dust management is undertaken on a continuous basis
across our operations to prevent impacts to our people, the
environment and to ensure safe operations for mining activities.
During FY24, we committed to upgrade the dust suppression
system throughout the KGP process crushing circuit and
commenced a road dust treatment trial using the Dust Stop
additive. Project capital received Board approval in December
2023, installation commenced in February 2024, and was
commissioned in September 2024.
Other dust controls include:
+
Water carts (applying dewatering water to roads and other
areas at risk of generating dust).
+
Upgraded return scrapers on conveyor belts.
+
Restricted traffic areas.
+
Speed limits and signage in designated work areas.
+
Regular road maintenance and formal inspections
and audits.
FY25 Focus
+
As part of the updated Water Operating Strategy at KGP
we are looking to minimise our dewatering needs and
evaluating options to return any remaining water to
the environment.
+
Water management and recycling systems will be key focus
areas in the KGP expansion study, enabling more efficient
use of water resources as we continue with our ‘low-to-no’
risk water approach at KGP.
+
Capricorn will also be seeking approvals to increase the
volume of water it can extract under its licence as part of
the KGP Expansion Study.
+
At the MGGP, the largely hypersaline groundwater
resource has been the subject of H3 Level Hydrogeological
testing and modelling for the life of the project. This
information, including a life of mine water balance model,
has been included in the referrals to the DCCEEW and EPA
mentioned above. In FY25, further test work at the MGGP is
planned to assess additional water resource potential.
17
CAPRICORN METALS
Energy and Emissions Performance
We report our annual emissions to the National Environmental Protection (National Pollution Inventory) and the National Greenhouse
and Energy Reporting Act 2007.
Energy consumption
Unit
Head
Office
KGP*
MGGP
Total
Diesel
GJ
0
668,216
36,991
705,207
Liquefied Natural Gas
GJ
0
825,596
0
825,596
Oils and Grease
GJ
0
25,681
0
25,681
Electricity purchased and consumed
GJ
89
309,755
0
309,844
Total
GJ
89
1,829,248
36,991
1,866,328
Percentage from renewable sources
%
0
0
0
0
* Data includes Contractors
Energy consumption
Unit
Head
Office
KGP*
MGGP
Total
Total Scope 1 emissions
t CO2 -e
0
89,857
2,604
92,461
Total Scope 2 emissions
t CO2 -e
13
0
0
13
Total
t CO2 -e
13
89,857
2,604
92,474
* Data includes Contractors
Air emissions
Unit
KGP
Total*
Carbon monoxide
kg
223,000
223,000
Lead & compounds
kg
129
129
Mercury & compounds
kg
2
2
Oxides of nitrogen
kg
437,000
437,000
Particulate Matter 10.0 um
kg
3,420,000
3,420,000
Particulate Matter 2.5 um
kg
26,900
26,900
Sulphur Dioxide
kg
253
253
Total volatile organic compounds
kg
22,000
22,000
* Includes KGP only. Data is not required for MGGP as the project is not in production
FY25 Focus
+
Completion of the KGP Expansion Study which has the
potential to reduce emissions and energy from fossil
fuels by limiting the double handling of ore and including
renewables as part of energy generation.
+
The continuation of the MGGP power generation study,
which has the potential to reduce the dependence on fossil
fuels by maximising operational efficiencies and including
renewables as part of the energy generation mix.
Environmental, social and governance report
18
CAPRICORN METALS
SOCIAL
Material topic: Health, Safety & Wellbeing
A safe and healthy workplace is a human right and underpins all
aspects of our business operations at Capricorn. We want all our
employees, contractors and visitors to return home safely.
As a Company, we seek to continuously improve our health and
safety practices while encouraging everyone to be responsible
for a safe and healthy work environment. Health management
and monitoring plans cover all employee and contractor groups,
and we encourage discussion and action on feedback.
Our commitment to minimising both physical and psychosocial
harm is supported by our Company policies, Risk Management
Framework and our project-specific Mine Safety Management
Systems. Company policies that support the health, safety and
wellbeing of our employees and contractors include:
+
Bullying, Harassment and Discrimination Policy
+
Mental Health and Wellbeing Policy
+
Diversity & Inclusion Policy
+
Noise Control Policy
+
Fitness for Work Policy
+
Privacy Policy
+
Health and Safety Policy
+
Workplace Rehabilitation Policy
These policies help embed an inclusive and supportive culture,
guide the provision of a safe workplace and safe systems of
work, and include measures that support the mental health and
wellbeing of our people.
Health and Safety Management Systems
Our project-specific Mine Safety Management Systems are
aligned to international standard ISO45001. All employees and
contractors are covered under the system.
These comprise:
+
Robust hazard and incident reporting practices and
systems that ensure appropriate action is taken to eliminate
or minimise potential hazards.
+
Pre-defined role-specific training needs.
+
The implementation of a new Work Health and Safety
(WHS) Audit and Assurance framework.
In FY24 we extended our commitment to effective WHS
management through implementation of the PeopleTray WHS
Software System and a revised contractor management
framework which is reviewed externally. The PeopleTray system
will strengthen our reporting and assurance activities through
automated workflows and reduce our reliance on paper-based
assurance activities.
19
CAPRICORN METALS
Safety and Training
Safety and training initiatives in FY24 include:
+
The commencement of our safety leadership training
programme inclusive of both external and in-house
training, focus on understanding WHS legislation and
responsibilities, critical risk controls and supervisor skills.
84.2% of supervisors and step-up supervisors have now
completed this training.
+
WHS training completed as per position requirements.
Over 10,000 hours of internal, online and external training
were recorded.
+
The continuation of the safety reward system for those
demonstrating exceptional commitment to WHS reporting
and improvement initiatives.
Health and Wellbeing
Health and Wellbeing initiatives in FY24 included:
+
Regular company-wide social club events.
+
An agreement signed with a Registered Training
Organisation (RTO) for the in-house delivery of accredited
First Aid Courses to employees and contractors.
+
Significant capital expenditure on industry leading patient
monitoring equipment.
+
Ongoing support through our Employee Assistance
Program (EAP).
Emergency Preparedness
We have maintained a proactive approach to emergency
preparedness by:
+
Engaging external industry leading trainers to conduct
training in vehicle extrication, hazardous materials and
aerodrome emergency response, with involvement of
external stakeholders such as the Western Australia Police
Force, Department of Fire and Emergency Services and
the Royal Flying Doctors Service.
+
Conducting weekly scenario-based team training.
+
Continuing with Cert III Mine Emergency Response and
Rescue courses for selected ERT members.
Environmental, social and governance report
20
CAPRICORN METALS
Health and Safety Performance
In FY24, Capricorn achieved a zero Lost Time Injury Frequency Rate (LTIFR).
There were eight recordable injuries at the KGP resulting in a Total Recordable Injury Frequency Rate (TRIFR) of 9.74. Seven of the
eight recordable injuries were considered of low severity and duration, whilst one of the eight is musculoskeletal related and still
under management.
There were no fatalities or cases of recordable work-related ill health among our employees or contractors in FY24.
All injuries have been supported in accordance with the Company’s Workplace Rehabilitation Policy and Procedure.
Health & Safety Statistics1 – Employees & Contractors at all projects
Unit
FY24
Fatalities
Number
0
High consequence work-related injuries
Number
0
Lost time injuries (LTI)
Number
0
Lost time injury frequency rate (LTIFR)
Rate
0
Medical treatment injuries (MTI)
Number
3
Medical treatment injury frequency rate (MTIFR)
Rate
3.31
First aid injuries (FAI)
Number
27
Restricted work injuries (RWI)
Number
0
Restricted work injury frequency rate (RWIFR)
Rate
0
Total recordable injuries (TRI)
Number
8
Total recordable injury frequency rate (TRIFR)
Rate
9.74
Total hours worked
Number
905,376
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.
FY25 Focus
+
In FY25 we plan to build on our existing mental health and wellness support programme with an external specialist, delivery of
internal workshops to raise mental health awareness and improve access to practical information for workers, their families
and workmates.
+
We will continue to progress statutory training in FY25 as well as our supervisor and step-up supervisor development training in
partnership with AREEA.
21
CAPRICORN METALS
Material topic: Cultural Heritage
We recognise the importance of respecting and preserving
the cultural heritage of our Traditional Owners, the Nyiyaparli,
Ngarlawangga (at the KGP) and the Badimia people (at the
MGGP) which is central to our social license to operate.
By safeguarding cultural heritage, Capricorn contributes to
the long-term sustainability of our operations through careful
management of the environment, preservation of historical sites,
and the cultural identity of our surrounding communities.
Our commitment to safeguarding cultural heritage is outlined
in our Environment, Community and Heritage Policy. In addition,
Australian law requires us to consult with Traditional
Owners and obtain their consent for exploration and mining
activities with the potential to impact cultural heritage sites.
Compliance with these laws is critical to avoid legal issues
and project delays.
Cultural Heritage
Land Access Agreements with our Traditional Owners are in
place with agreed terms and shared objectives upheld to ensure
compliance with our access obligations.
The following measures and programmes are also in place:
+
Communication of cultural awareness information to
onsite personnel.
+
Annual meetings with Traditional Owners.
+
Continuous engagement on heritage surveys.
+
Heritage sites are kept confidential with no markings
or attention brought to them as requested by our
Traditional Owners.
At the KGP, seven cultural heritage surveys were conducted
in FY24. At the MGGP, we carried out six heritage surveys,
including well and water archaeological surveys with significant
input from Traditional Owners. Heritage monitoring, notices
and consultation requests were completed at both projects to
facilitate access for exploration activities.
FY25 Focus
+
Enhance the site induction process to better communicate
cultural awareness information for site personnel at both
KGP & MGGP.
+
We will continue heritage surveys across the Company’s
tenement area, ensuring all necessary consultation
permission requests are completed. This will facilitate
access for planned activities while upholding our
commitment to regulatory compliance and respecting
the cultural significance of Traditional Owners.
Material topic: People – Attraction,
Retention & Engagement
Capricorn is focused on building a work culture that attracts,
develops and retains great people. We aim to achieve this by
offering competitive remuneration and benefits, providing
opportunities for career growth and by creating a positive and
collaborative work environment.
These commitments are governed by Capricorn’s
Remuneration, Nomination and Diversity Committee, who
are responsible for policy review, strategy oversight and
recommendations to support this goal.
Policies currently in place include:
+
Remuneration, Nomination and Diversity
Committee Charter;
+
Code of Conduct;
+
Diversity Policy;
+
Bullying Harassment and Discrimination Policy; and
+
Performance Evaluation Policy.
Strategic Workforce Planning
Strategic workforce planning was undertaken in FY24 to identify
talent needs associated with the organisation’s future goals.
We are focussed on developing a strategy to ensure we have
the right mix of talent, technologies and employment models to
achieve these goals.
Some of the key elements of our strategic workforce
planning includes:
+
Development of a talent acquisition strategy
+
Development of a leadership training programme
+
Consideration of new positions for future needs
+
The expansion of our operations, services or products
+
Talent retention planning
Environmental, social and governance report
22
CAPRICORN METALS
Other initiatives in place include:
+
A Graduate Programme open to students in their final year
of university or recent graduates of a relevant degree,
designed to give participants experience in a wide range
of business, site operations and technical roles. Graduates
receive ongoing training and development, mentoring
by our leaders and access to a strong network so they
can share experiences, learn from each other and
develop connections.
+
A Vacation Programme offering tertiary students the
opportunity to work at our operations in a hands-on
environment. As part of the programme, students are
assigned to a sector and paired with a team member who
provides mentoring and supervision. During the 12-month
to four-year structured training period, we offer apprentices
the opportunity to expand their knowledge and skillset as
well as obtaining a nationally recognised trade qualification.
Attraction, Retention & Engagement
Our integrated approach to attracting, recruiting and retaining
employees defines a clear value proposition and incorporates
ongoing engagement, compensation and effective rewards.
All employees received a performance and career development
review in FY24. We are committed to providing our employees
with continuous training and education programmes, including
graduate internships and apprenticeships, to support them to
realise their full potential.
Other employee attraction retention and engagement
activities include:
+
Competitive remuneration rates and industry
benchmarking.
+
Retention incentives providing employees the opportunity
to obtain equity in the Company.
+
Other incentives, including the award of a 2-ounce gold bar
to employees with over 12 months of service to celebrate
Company milestones (see picture below).
+
Development of career progression and advancement
opportunities.
+
People-first workplace, retention, employee wellness
programmes, skills training, and clear opportunities
for advancement.
+
Regular company recognition of hard work, commitment
and dedication of employees with timely recognition and
appreciation of their hard work.
Attraction, Retention & Engagement and
Training Performance
All of our employees received a performance and career
development review in FY24.
During FY24 we hired 43 new employees and our turnover rate
was 28% which is consistent with the WA mining industry.
A total of 6,304 hours of training was undertaken by employees
during the year, resulting in average training hours per employee
of 38 hours.
23
CAPRICORN METALS
Employment Summary
Total employees by employment category
Unit
FY24
Total senior management employees
Number
4
Total general employees
Number
151
Total employees
Number
155
New Employee Hires and Turnover by Gender and Age
New employee hires by gender
Unit
FY24
Male
Number
33
Male
%
77%
Female
Number
10
Female
%
23%
New employee hires by age
Under 30
Number
8
Under 30
%
19%
30-50
Number
29
30-50
%
67%
Over 50
Number
6
Over 50
%
14%
Employee turnover by gender
Male
Number
28
Male
%
78%
Female
Number
8
Female
%
22%
Employee turnover by age
Under 30
Number
12
Under 30
%
33%
30-50
Number
18
30-50
%
50%
Over 50
Number
6
Over 50
%
17%
Training
Training hours
Unit
FY24
Total training hours – employees
Hours
6,304
Total training hours – contractors
Hours
3,954
Average training hours per employee
Hours
38
Average training hours per contractor
Hours
6
Total training hours by gender
Employees – Male
Hours
5,317
Employees – Female
Hours
987
Contractors – Male
Hours
3,465
Contractors – Female
Hours
489
Total training hours by employment category
Senior Management
Hours
73
Middle Management
Hours
756
General Workforce
Hours
5,475
Contractor Workforce
Hours
3,954
Environmental, social and governance report
24
CAPRICORN METALS
Material topic: Diversity & Equal Opportunity
Capricorn is focused on building an inclusive, culturally
capable and diverse workforce where everyone is given
equal opportunities and treated with fairness and respect.
We recognise that a diverse and inclusive workplace is not
only ethical practice but help foster employee engagement,
satisfaction, innovation and productivity.
Workplace diversity and inclusion is everyone’s responsibility.
Building and modelling positive, respectful, and inclusive
behaviour, as well as valuing diversity and diverse opinions
within our workforce is vital for ensuring a constructive
work culture.
Our commitment to promote diversity in all its forms, from
hiring to offboarding is outlined in Capricorn’s Remuneration,
Nomination and Diversity Committee Charter which is
responsible for reviewing and recommending policies that will
promote Board and workplace diversity and inclusion. In FY24
we appointed our first female Non-Executive Director to the
Board, Ms Jill Irvin.
At the governance level, diversity and equal opportunity is
addressed by our Code of Conduct, Diversity Policy, Bullying
Harassment and Discrimination Policy and Performance
Evaluation Policy.
The following measures and programmes are also in place:
+
The HR department, with the support of all managers,
ensures that employees receive information on
diversity awareness.
+
We evaluate remuneration regularly using industry
benchmarking and provide like-for-like pay for all positions.
+
A peer monitoring programme among colleagues.
+
We encourage and promote local employment by
advertising job openings within the local community and
sponsoring overseas candidates on Temporary Skills
Shortage (TSS) visa.
+
Our monthly reporting includes gender ratio data for
corporate and site-based personnel positions in all areas
of the Company.
+
All Capricorn employees are entitled to parental leave.
Diversity and Equal Opportunity Performance
Gender Diversity
Total workforce by gender
Unit
FY24
Total male
Number
119
Total female
Number
36
General employees by gender
Total male
Number
115
Total female
Number
36
Senior management by gender
Male
Number
4
Female
Number
0
Board team by gender
Male
Number
4
Female
Number
1
Age Diversity
General employees by age
Unit
FY24
Under 30
Number
37
30-50
Number
78
Over 50
Number
36
Senior management by age
Under 30
Number
0
30-50
Number
2
Over 50
Number
2
Board team by age
Under 30
Number
0
30-50
Number
2
Over 50
Number
3
Employment Type and Gender
Employees by employment type and gender
Unit
FY24
Full-time, Male
Number
102
Full-time, Female
Number
32
Part-time, Male
Number
0
Part-time, Female
Number
1
FY25 Focus
Capricorn is currently developing a Diversity and Inclusion survey module with the purpose of obtaining data on diversity and
information about the demographic mix of our team. The inclusion data will capture the inclusion and exclusion experiences of
the workforce.
Development of specific diversity training and awareness programmes that model constructive workplace behaviours to promote
diversity and inclusion, raise awareness about the benefits of diversity and highlight the negative impacts of discrimination and bias.
25
CAPRICORN METALS
GOVERNANCE
Material Topic: Business Ethics & Governance
We seek to uphold the highest standards of integrity and
accountability across all levels of our business.
To maintain strong ethical conduct, our governance framework
comprises charters, policies, procedures and responsibilities
to ensure that we comply with our Company values and
stakeholder obligations. Our Corporate Governance framework
is outlined under the subheadings below.
Corporate Governance Structure
The Capricorn 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.
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 which are outlined in our Corporate
Code of Conduct.
Capricorn Metals Governance Framework
Risk Management & Sustainability Committee
The Audit and Risk Management Committee was restructured
in FY24 into two separate Committees: An Audit Committee and
a Risk Management and Sustainability Committee (RMSC).
The Audit Committee Charter and RMSC Charter were
developed in FY24, and clearly outline the roles and
responsibilities of the Committees.
Climate Risk
We recognise the impact of the warming climate on our
operations. Climate risk and emissions is one of our material
topics and is overseen at the Board level by our Risk
Management and Sustainability Committee. A Working Group
comprising of seven senior employees, including the Chair
of the RMSC, attended a workshop in April to review material
topics for FY24 and the latest climate risk requirements,
including the proposed Australian Sustainability Reporting
Standards. The standards will guide our climate reporting.
As part of our preparation for mandatory climate reporting, we
plan to conduct a climate risk assessment workshop next year.
Board
+
Corporate governance
+
Risk management
Other Employees
+
Upholding corporate governance
and risk management policies
and procedures
Risk Management and
Sustainability Committee
+
Non-financial risk management
+
Sustainability risk
Remuneration, Nomination and
Diversity Committee
+
Appointment & evaluation of
Board and Senior management
+
Diversity
Audit Committee
+
Financial risk management
Senior Management
+
Business strategy
+
Day to day decision making
+
Implementing corporate
governance and risk
management practices
Environmental, social and governance report
26
CAPRICORN METALS
Corporate Code of Conduct
Our Corporate Code of Conduct, available on our website,
outlines our commitment to integrity and fair dealing 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.
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).
Anti-Bribery & Corruption Policy
Capricorn has a zero-tolerance approach to bribery and
corruption. Our Anti-Bribery and Corruption Policy describes
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. Any breach is regarded as a serious matter and may
result in disciplinary action. There were no reported incidents of
corruption in FY24.
Whistleblower Policy
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 report concerns
of misconduct.
Modern Slavery Statement
Modern Slavery risks are overseen by the Company’s Risk
Management & Sustainability Committee. In FY23, we
developed a Modern Slavery Statement to guide our principles
and risks with respect to our business and supply chain.
Memberships & Associations
Industry associations play a valuable role to promote knowledge
sharing and advocacy across the mining sector. Capricorn
proudly participates 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).
27
CAPRICORN METALS
Material Topic: Economic Performance
A strong financial performance is integral to the long-term
success and resilience of our business and the creation of
shared, sustainable value for our stakeholders.
Our focus continues to be on the efficient management of
our operations to ensure that we advance our projects and
contribute to local communities and the Australian economy.
The Capricorn Board provides overarching financial
performance oversight. The Audit Committee manages financial
risk and compliance while the RMSC manages non-financial
and sustainability risk and compliance. The Audit Committee
Charter and RMSC Charter outline the roles and responsibilities
of the Committees.
Our senior management team, led by the Executive Chairman,
Chief Executive Officer, Chief Operating Officer and Chief
Financial Officer, are responsible for day-to-day management of
operations and administration.
Economic Contribution
Capricorn is committed to supporting the local communities
in which we operate and is a significant contributor to the
Australian economy, both direct and indirectly through
employment opportunities, supplier payments, taxes
and royalties.
Capricorn takes great pride in a ‘support local’ procurement
strategy. In FY24, 99.96% of our total procurement expenditure
was in Australia.
As a proportion of total spend, Western Australian businesses
received the majority of these contributions, representing 88%
of total procurement expenditure.
Supplier Spend by Region
Unit
2024
Local area
$M
3.2
Western Australia
$M
199.5
Rest of Australia
$M
27.6
International
$M
0.1
Total
$AUD
230.4
Economic Contribution by Type
Unit
FY24
Supplier payments
$M
227.1
Employee wages, salaries,
and benefits
$M
20.5
Finance costs
$M
76.2
Taxes
$M
9.7
Royalties
$M
18.6
Local community contributions
$M
3.2
Total
$AUD
355.3
Tax transparency
We are fully compliant with all tax regulations. Our Audit
Committee and Board oversees our tax risk management,
with responsibilities outlined in the Audit Committee Charter.
An overview of the company’s tax position for FY24 can be
found in this Annual Report.
Financial Performance
During the year we continued our strong period of growth, while
operating efficiently, sustainably and in compliance with all
relevant laws and regulations.
The following is a summary of Capricorn’s performance
for FY24:
+
Record revenue of $359.8m includes the sale of
112,853 ounces of gold at an average realised price of
$3,185 per ounce.
+
Strong cashflow generation continued at the KGP with
record cashflow from operating activities of $158.2m and
record EBITDA of $168.3m.
+
Net cash position increased by $13.4m to $69.3m after
the payment of $69.6m to partially close-out the hedge
book (and buy gold put options), $32.0m in exploration and
$19.6m in early spend at the MGGP.
+
Increase in net cash position driven by the production of
113,007oz at an AISC of $1,421/oz from the KGP.
Local Area
Western Australia
Rest of Australia
International
Supplier payments
Employee wages, salaries, and benefits
Finance costs
Taxes
Royalties
Local community contributions
28
CAPRICORN METALS
Please refer to our Financial Report for a full summary of our
FY24 financial performance.
FY25 Focus
+
Continue profitability and returns for our shareholders.
+
We expect KGP to continue its strong operational
performance by producing 110,000-120,000 ounces at an
AISC range of $1,370-$1,470 per ounce and growth capital
of $10-20 million.
+
Completion of the KGP Expansion Study.
+
Commence a study to evaluate the underground potential
of the MGGP.
+
Continue to progress the development of our MGGP and
seek to obtain the necessary permits and approvals to
commence construction of the project.
29
CAPRICORN METALS
Directors’ report
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 2024 and the audit report thereon, made in accordance with a resolution of the Board.
Directors
The Directors of the Company who held office since 1 July 2023 and up to the date of this report are set out below.
Directors were in office for the entire year unless stated otherwise.
Mr Mark Clark
B.Bus, CA
Executive Chairman
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.
Mr Mark Okeby LLM
Non-Executive Director
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 35 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:
•
Non-Executive Chairman of Peel Mining Limited (March 2022 to present)
•
Non-Executive Director of Red Hill Iron Limited (August 2015 to present)
Mr Myles Ertzen
B.Sc Grad Dip App Fin
Non-Executive Director
Appointed 13 September 2019
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.
30
CAPRICORN METALS
Directors’ report (Continued)
Mr Bernard De Araugo
B.App.Sc (Metallurgy)
Non-Executive Director
Appointed 26 May 2021
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.
Ms Jillian Irvin
B.Sc (Geology)
Non-Executive Director
Appointed 12 October 2023
Ms Irvin is an experienced geologist with over 25 years’ experience in the Australian
mining industry. She has a strong operating background having worked for several
Australian gold and base metals companies performing a variety of roles including
resource estimation, near mine exploration and mining geology.
Ms Irvin is currently the Principal Geologist at Entech, a West Perth based,
international mining consultant specialising in resource geology, mining engineering
and geotechnical services.
Ms Irvin is an independent director.
During the past three years Ms Irvin has not held any other listed company
directorships.
Company Secretary
The Company Secretary of the Company during the year and up to the date of this report is set out below.
Mr Kim Massey
B.Com, CA
Company Secretary
Appointed 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.
Committee membership
During the year, the Audit and Risk Management Committee was restructured into two separate committees. At the date
of this report, the Company had an Audit Committee, a Risk Management and Sustainability Committee, and a
Remuneration, Nomination and Diversity Committee. The directors acting on the Committee’s during the year were:
Director
Audit Committee
Risk Management and
Sustainability Committee
Remuneration, Nomination and
Diversity Committee
M Okeby (1)
ü
ü
ü
M Ertzen
Chair
ü
ü
B De Araugo
ü
Chair
Chair
J Irvin
ü
ü
ü
(1) M Okeby retired from each of the Board Committees on 15 November 2023.
31
CAPRICORN METALS
Directors’ report (Continued)
Directors’ meetings
The number of Board and Committee meetings held and attended by directors during the year were as follows:
Director
Board
Audit & Risk
Management (1)
Audit (1)
Risk Management
and Sustainability (1)
Remuneration,
Nomination
and Diversity
No.
held
No.
attended
No.
held
No.
attended
No.
held
No.
attended
No.
held
No.
attended
No.
held
No.
attende
d
M Clark
9
9
-
-
-
-
-
-
-
-
M Okeby
9
9
2
2
-
-
-
-
1
1
M Ertzen
9
9
2
2
1
1
2
2
2
2
B De Araugo
9
9
2
2
1
1
2
2
2
2
J Irvin
7
7
-
-
1
1
2
2
1
1
(1) The Audit & Risk Management Committee was restructured into two separate committees during the year.
Principal Activities
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”).
Strategy/Objectives
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 KGP. 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 an updated mineral reserve and ore reserve estimate.
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 both
the KGP and MGGP tenement packages;
• 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.
Operating and Financial Review
Overview
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 13-year mine life on current reserves. The KGP completed its third full year of
operations producing 113,007 ounces of gold at an all-in-sustaining-cost (“AISC”) of $1,421 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 an updated ore reserve
estimate of 1.83 million ounces in April 2024.
32
CAPRICORN METALS
Directors’ report (Continued)
Financial summary
Key financial data
2024
$‘000
2023
$‘000
Change
$’000
Change
%
Sales revenue
359,834
320,840
38,994
12
Cost of sales (excluding D&A) (1)
(176,106)
(146,429)
(29,677)
20
Other income
26
34
(8)
(24)
Corporate, admin and other costs
(15,424)
(12,520)
(2,904)
23
EBITDA (1)
168,330
161,925
6,405
4
Depreciation & amortisation (D&A)
(28,723)
(27,510)
(1,213)
4
Net finance costs
(13,920)
(125,249)
111,329
(89)
Profit before tax
125,687
9,166
116,521
1,271
Income tax expense
(38,549)
(4,767)
(33,782)
709
Profit/(loss) after tax
87,138
4,399
82,739
1,881
Cashflow from operating activities
158,184
152,560
5,624
4
Cash and cash equivalents
119,917
106,471
13,446
13
Borrowings
(50,658)
(50,613)
(45)
0
Net cash
69,260
55,858
13,402
24
Net assets
309,265
256,537
52,728
21
Basic earnings per share (cents per share)
23.13
1.18
21.95
1,860
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 $87.1 million for the full year to 30 June 2024, up from $4.4 million in the
previous year, primarily due to one-off finance costs associated with the restructuring of gold forward contracts in FY23
(see “Net finance costs” below).
EBITDA increased 4% to $168.6 million for the full year to 30 June 2024 as higher gold sales revenue were offset by
increases in operating and overhead costs.
Performance summary
Sales
Gold revenue for the financial year was $359.4 million from the sale of 112,853 ounces of gold at an average realised
price of $3,185 per ounce (2023: $320.8 million from 120,320 ounces at $2,665 per ounce). During the year, Capricorn
had no gold forward contract obligations (2023: 16,947 ounces at $2,777 per ounce).
As at 30 June 2024, Capricorn’s gold forwards hedging programme totalled 55,000 ounces of flat forward contracts at an
average delivery price of $2,327 per ounce and a 16,700 ounce sold gold call option with a strike price of $2,260 per
ounce and expiry date of 30 June 2025.
The Company has no gold hedging delivery obligations until 31 December 2025.
Cost of sales
Cost of sales, excluding depreciation and amortisation, for the year increased 20% to $176.1 million from the previous
year mainly due to higher unit mining rates as the Bibra open pit deepens and the effect of industry wide cost pressures.
Net finance costs
The restructure of the gold forwards in June 2023 led to the adoption of hedge accounting from 1 July 2024. The
remaining gold forwards are now valued through the Company’s reserves and recognised in the profit and loss statement
on the designated delivery dates of the contracts. These contracts previously qualified as future inventory sales contracts
with the sales value recognised as revenue at the time of sale, also known as the “own use” exemption.
In June 2024, the Company announced that it had reduced its gold forward contracts by 52,000 ounces to provide further
exposure to any increase in the A$ gold price. The closure of the gold forwards means the Company does not have any
gold hedging delivery obligations until December 2025. As part of the closure Capricorn also purchased gold put options
(for the same volume and maturity as the closed hedge contracts) which gives Capricorn the right (but not the obligation)
33
CAPRICORN METALS
Directors’ report (Continued)
to sell the previously hedged ounces at a price of A$3,432 per ounce. The cost of reducing the hedge book and the
purchase of gold put options was $69.6 million, this was paid in cash.
The implementation of hedge accounting resulted in a reduction in net finance costs by $50.3 million, bringing the total
down to $13.9 million compared to the previous year. The closures of the June 2024 gold forward contracts will be
recognised in the profit and loss statement on the designated delivery dates of the contracts.
Cashflow
Statutory operating cash flow for the year was $158.2 million which delivered a $13.4 million increase (to $119.9 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 $164.8 million
•
Payments for the partial closure of the gold forwards hedge book and purchase of gold put options of $69.6
million
•
$32.0 million on exploration activities at KGP and MGGP
•
$16.8 million on the camp construction at the MGGP
Net cash
The Company had net cash of $69.3 million at the end of the financial year (2023: net cash of $55.9 million) an increase
of $13.4 million from the prior year after the $69.6 million payment to partially close the hedge book (2023: $36.8 million).
The Company had outstanding debt at the end of the financial year of $50 million (2023: $50 million). In July 2022,
Macquarie Bank agreed to convert the $50 million outstanding debt to a general-purpose corporate loan facility with a
single bullet repayment in June 2025.
Project summary
Karlawinda Gold Project
Operations
Operating results for the 2024 financial year were as follows:
Unit
30 June 2024
30 June 2023
Ore mined
BCM (‘000)
2,023
2,443
Waste mined
BCM (‘000)
10,546
10,129
Stripping ratio
w:o
4.45
4.15
Ore mined
Tonnes (‘000)
5,276
5,807
Ore milled
Tonnes (‘000)
4,063
4,219
Head grade
g/t
0.97
0.96
Recovery
%
90
93
Gold production
Ounces
113,007
120,014
Cash cost (1)
A$/oz
$1,275
$1,038
Cash cost inc. royalties
A$/oz
$1,448
$1,186
All-in-sustaining-cost (1)
A$/oz
$1,421
$1,208
1
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 113,007 ounces from its third year of operation. This was within the revised annual production guidance
range of 112,000 – 115,000 ounces. The all-in-sustaining-cost (“AISC”) for the financial year was $1,421 per ounce which
was 4% above the top end of the AISC guidance range for the year of $1,270 - $1,370 per ounce, due to the impacts of
weather events in March 2024 on production and mining activities.
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
4.45. 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 4 of the open pit. Mining was affected by two significant rainfall events in Q3 which disrupted
ore supply to the ROM.
The processing plant maintained consistent levels of production throughout the year. Mill throughput was impacted by
the blending of a higher proportion of fresh ore compared to previous years. Additionally, optimisation of the oxygen
34
CAPRICORN METALS
Directors’ report (Continued)
circuit and lead nitrate trials aimed at improving recoveries in the fresh ore were completed in the fourth quarter and
illustrated encouraging results.
Capricorn expects FY25 operations to be consistent with FY24, with gold production guidance of 110,000 – 120,000 ounces
at an AISC range of $1,370 - $1,470 per ounce and growth capital of $10 - $20 million.
Exploration
Capricorn wholly owns a 2,000 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 430 holes for 57,829 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). Near mine drilling
was completed at Vedas, Belhaven, Berwick and Carnoustie, with further drilling expected to continue into FY25. A reserve
conversion drilling programme was also completed, including at Berwick, to allow the conversion of Inferred Resources
to Indicated category which resulted in a significant update to the KGP Ore Reserve Estimate in August 2024 to 1,428,000
ounces.
An extensive, regional drilling programme comprising 25,000m of Aircore and 18,000m of RC drilling is scheduled to
commence in Q1FY25. The drill targets are interpreted to be in similar geological settings prospective for Bibra style and
intrusion related mineralisation, and include multiple gravity-high and surface sample anomalies along magnetic
corridors with known gold occurrences.
Reserves & Resources
In August 2024 the Company announced an annual resource and reserve update for KGP.
The updated KGP Ore Reserve Estimate (“ORE”) of 1,428,000 ounces (2023: 1.25 million ounces) was an increase of
333,000 ounces after accounting for mining depletion in the 15 months to 30 June 2024.
The updated Mineral Resource Estimate (“MRE”) of 2,252,000 ounces (2023: 2.23 million ounces) was an increase of
176,000 ounces after accounting for mining depletion in the 15 months to 30 June 2024.
Figure 1: Karlawinda Gold Project exploration targets
35
CAPRICORN METALS
Directors’ report (Continued)
Mt Gibson Gold Project
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 2024 the Company announced an updated ORE for the MGGP. The updated JORC 2012 compliant ORE is 61.6
million tonnes @ 0.9g/t Au for 1.83 million ounces (2023: 1.45 million ounces). This ORE is based on a MRE of 125.1 million
tonnes @ 0.8g/t Au for 3.31 million ounces (2023: 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 160 metres, down to a maximum depth of 260 metres
and an operating strip ratio of 4.2.
During the year a total of 1,053 holes for 102,057 metres were drilled across the MGGP tenement package.
Exploration activities at the MGGP focussed on extensional and infill drilling as well as near mine exploration at prospects
immediately adjacent to the Mt Gibson trend. Resource drilling has continued under the S2, Orion and Lexington pits and
the unmined areas across both the Mt Gibson and Taurus trends.
During the year, a diamond drilling programme was completed to test the underground mining potential under the Orion
and Lexington pits. Drilling returned broad high-grade intercepts demonstrating that mineralisation extends significantly
at depth and shows the potential for underground mine operations.
Continued resource extension and near mine exploration drilling will continue in FY25 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 updated ORE is based on updates to the prefeasibility study that indicates the MGGP is a robust, large scale open pit
gold mine with gold production averaging 155,000 ounces per annum over the project's first 9 years at a forecast all-in-
sustaining-cost of $1,450 - $1,550 per ounce.
In December 2023, Capricorn referred the development of the MGGP to the Commonwealth Department of Climate
Change, Energy, the Environment and Water (DCCEEW) under the Environmental Protection and Biodiversity
Conservation Act 1999 (EPBC Act), based on comprehensive environmental assessment work over the last two and a half
years. In June 2024, Capricorn received advice from DCCEEW relating to the assessment of the MGGP referral. As
expected, the project will be assessed as a Controlled Action via Public Environment Report, with an issue of guidelines
for the Report to be completed by Capricorn.
In May 2024, Capricorn lodged the referral of the MGGP to the Environmental Protection Authority (EPA) under the Part
IV of the Western Australian EP Act to commence the WA assessment process, which will run parallel with the
Commonwealth assessment. The referral was validated by the EPA in July 2024, and will be assessed on referral
information.
During the year, the installation of 400-room accommodation units and associated infrastructure buildings required for
the operation commenced. Tenders were issued for mining services, power supply and process plant design contracts
with a number of site visits conducted for potential service providers.
Capricorn’s strategy is to expedite the accommodation village construction, project design and long lead purchasing in
parallel with progressive receipt of development and environmental permits where it is expected to be advantageous to
the ultimate development schedule and cost to do so.
Material business risks
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.
36
CAPRICORN METALS
Directors’ report (Continued)
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.
Significant changes in state of affairs
Other than as set out below and elsewhere in the report, there were no significant changes in the state of affairs.
Dividends paid or recommended
No dividends were paid or recommended to be paid during the financial year (2023: Nil).
Subsequent events
There were no material events arising subsequent to 30 June 2024, 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.
Likely developments
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.
Environmental issues
The Group’s current activities generally involve disturbance associated with mining activities and exploration drilling
programmes in Australia. 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.
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.
37
CAPRICORN METALS
Directors’ report (Continued)
Directors’ interests
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:
Director
Number of
shares
Number of
unquoted rights
M Clark
17,292,000
316,084
M Okeby
4,615,385
-
M Ertzen
1,600,000
-
B De Araugo
74,550
-
J Irvin
-
-
Share options
Unissued shares
At the date of this report, the Company had no unissued shares under listed and unlisted options.
Shares issued on exercise of options
The Company had no shares issued under options for the year.
Performance rights
Unissued shares
At the date of this report, the Company had the following unissued shares under unvested performance rights.
Vesting date
Number outstanding
30 June 2024
188,907
18 September 2024
50,000
4 October 2024
139,909
10 December 2024
485,000
30 June 2025
266,242
10 July 2025
16,000
18 September 2025
40,000
10 December 2025
180,760
30 June 2026
77,335
10 July 2026
16,000
18 September 2026
30,000
10 December 2026
201,655
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.
Indemnification and insurance of directors and officers
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.
38
CAPRICORN METALS
Directors’ report (Continued)
Auditor independence and non-audit services
No fees were paid or payable to KPMG Australia for non-audit services during the year ended 30 June 2024 (2023: 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 2024 is attached to the Directors’ Report.
Proceedings on behalf of the Company
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings.
Rounding off
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.
39
CAPRICORN METALS
Remuneration report (Audited)
This remuneration report for the year ended 30 June 2024 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.
Remuneration principles
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 2024 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)
40
CAPRICORN METALS
Remuneration report (Audited) (Continued)
The relative proportion of FY24 total remuneration packages split between the fixed and variable remuneration achieved
for the executives is shown below:
(1) Mr P Thomas was no longer considered KMP from 20 May 2024 but remained an employee of the Company at 30 June 2024.
Elements of Remuneration
Fixed remuneration
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 2024 financial year, executive annual base salaries were:
•
Mark Clark
$900,000
•
Kim Massey
$600,000
•
Paul Criddle (1)
$550,000
•
William Nguyen (2)
$315,000
(1) Mr Paul Criddle commenced on 20 May 2024
(2) Mr William Nguyen commenced on 18 June 2024
Short term incentives
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 FY24
was 40% of the fixed remuneration of the executive.
Each year the RNDC set KPI targets for executives. For FY24 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.
The Board has the discretion in the event of a significant safety, environment or heritage incident of not awarding any
STI’s in the relevant financial year.
A summary of the KPI targets set for FY24 and their respective weightings and achievements are as follows:
65%
73%
68%
71%
67%
9%
10%
10%
26%
17%
22%
29%
33%
M Clark
K Massey
P Thomas
P Criddle
W Nguyen
Total fixed remuneration
Short term incentives
Long term incentives
41
CAPRICORN METALS
Remuneration report (Audited) (Continued)
Key Performance
Indicator
Weighting Measure
% of KPI
achieved
Award
Production
25%
Gold production in line or greater than budget
0%
0%
Costs
25%
AISC in line or less than budget
0%
0%
Safety, environment &
heritage
10%
Safety, environment and heritage internal targets
100%
10%
Reserve growth
15%
Addition to the Company’s reserve base net of
depletion through mining
100%
15%
Company performance
25%
TSR performance against comparator group
60%
15%
Total
100%
40%
In assessing the achievement of the KPI’s the Committee made the following assessments:
Production – Following two significant rainfall events in the March quarter, annual gold production of 113,007 ounces was
below the FY24 budgeted production, and subsequently, the metric was not achieved;
Costs – AISC’s of $1,421 per ounce achieved was above FY24 budgeted AISC’s due to the below budgeted production, and
subsequently, the metric was not achieved;
Safety, environment & heritage – The Company continues its commitment to high standards of safety, environmental
performance and heritage obligations, a satisfactory performance was achieved for the year, and a 10% weighting was
awarded;
Reserve growth – The Company’s reserves increased by 38% to 3.1 million ounces. The stretch target was achieved and a
15% weighting was awarded;
Company performance – The Company achieved a total shareholder return of 19% for the 12 months to 30 June 2024
which was at the 50th percentile of the comparator group. Accordingly, the base target was achieved and a 15% weighting
was awarded.
Based on the above assessment, 40% of the target opportunity of 40% of fixed remuneration was achieved with the
following STI payments made to executives for FY24:
Executive
Maximum STI opportunity
% KPI achieved
STI awarded (1)
STI awarded
Mark Clark
40% of TFR
40%
16% of TFR
$144,000
Paul Thomas
40% of TFR
40%
16% of TFR
$96,000
Kim Massey
40% of TFR
40%
16% of TFR
$112,000
(1) STIs that are not awarded are deemed to be forfeited.
Long term incentives
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 2024 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 FY24 were subject to one performance hurdle being total shareholder return (“TSR”)
measured against a benchmark peer group.
42
CAPRICORN METALS
Remuneration report (Audited) (Continued)
The following companies were identified by Capricorn to comprise the peer group for LTI purposes from 1 July 2023:
Peer Group
Alkane Resources Limited
Bellevue Gold Limited
Calidus Resources Limited
Dacian Gold Limited (removed)
De Grey Mining Limited
Emerald Resources NL
Evolution Mining Limited
Genesis Minerals Limited
Gold Road Resources Limited
Northern Star Resources Limited
OceanaGold Corporation (removed)
Ora Banda Mining Ltd
Pantoro Limited
Perseus Mining Limited
Ramelius Resources Limited
Red 5 Limited
Regis Resources Limited
Resolute Mining Limited
Silver Lake Resources Limited
(removed)
St Barbara Limited
Westgold Resources Limited
West African Resources Limited
This peer group provides a broad and representative comparative 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:
Relative TSR for Measurement Period
Proportion of Performance Rights that will vest
Below the 50th percentile
0%
At the 50th percentile
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 2023 and ending on 30 June 2025
(Tranche 1); and
• The other 50% of the performance rights is the 36-month period commencing on 1 July 2023 and ending on 30 June
2026 (Tranche 2).
The following executives were awarded LTI’s during the reporting period:
Executive
Maximum LTI
Opportunity
Number of performance rights
granted during FY24
Mark Clark
70%
154,670
Shareholders approved the issue of performance rights to Mr Clark at the Company AGM in November 2023.
43
CAPRICORN METALS
Remuneration report (Audited) (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:
KMP
Incentives
No. of rights
Grant date
FV at grant
date
Test date
% Vested
during the
year
%
forfeited
during
the year
M Clark
TSR
120,000
24/11/2021
$2.042
4/10/2023
100%
0%
TSR
80,707
29/11/2022
$3.197
30/6/2024
0%
0%
TSR
80,707
29/11/2022
$3.297
30/6/2025
0%
0%
TSR
77,335
29/11/2023
$4.276
30/6/2024
0%
0%
TSR
77,335
29/11/2023
$4.276
30/6/2026
0%
0%
K Massey
TSR
57,340
4/10/2021
$1.780
30/6/2023
100%
0%
TSR
57,340
4/10/2021
$1.872
30/6/2024
0%
0%
TSR
44,344
19/6/2023
$2.562
30/6/2024
0%
0%
TSR
44,344
19/6/2023
$2.867
30/6/2025
0%
0%
P Thomas
TSR
82,569
4/10/2021
$1.780
30/6/2023
100%
0%
TSR
82,569
4/10/2021
$1.872
30/6/2024
0%
0%
TSR
63,856
19/6/2023
$2.562
30/6/2024
0%
0%
TSR
63,856
19/6/2023
$2.867
30/6/2025
0%
0%
932,302
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 $661,369. This amount is allocated to remuneration over the vesting period (i.e. in years
1 July 2023 to 30 June 2026).
The total performance rights expense recognised for KMP during the year is $834,676.
There were 120,000 performance rights with a grant date 24 November 2021 that vested and were exercised during the
year. There were 139,909 performance rights with a grant date 4 October 2021 that vested and were exercised during
the year.
Options
There were no options granted to KMP’s during the current year.
There were no movements in options during the year.
44
CAPRICORN METALS
Remuneration report (Audited)
Movements in rights over equity instruments
The movement during the reporting period in the number of performance rights over ordinary shares in the Company held, directly, indirectly or beneficially, by KMP, including their related
parties is as follows:
Held as at
1 July 2023
Granted as
remuneration
Exercised
Net change
other (1)
Held as at
30 June 2024
Total vested
Exercisable
Not
exercisable
Rights
M Clark
281,414
154,670
(120,000)
-
316,084
-
-
316,084
K Massey
114,680
-
(57,340)
88,688
146,028
-
-
146,028
P Thomas
165,138
-
(82,569)
127,712
210,281
-
-
210,281
Total
561,232
154,670
(259,909)
216,400
672,393
-
-
672,393
Unvested rights are forfeited immediately on cessation of employment.
Vested rights lapse 30 days after the cessation of employment if the options have not been exercised prior.
(1) Net change other refers to rights granted in FY23 but issued in FY24.
45
CAPRICORN METALS
Remuneration report (Audited)
Non-executive directors
Total remuneration for all Non-Executive Directors, last voted upon by shareholders at the 2023 Annual General Meeting,
is not to exceed $800,000 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, Audit and Risk 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.
Key management personnel
The following table outlines the movements in KMP during the year ended 30 June 2024.
Name
Position
Term as KMP
Mr Mark Okeby
Non-Executive Director
Full Year
Mr Myles Ertzen
Non-Executive Director
Full Year
Mr Bernard De Araugo
Non-Executive Director
Full Year
Ms Jillian Irvin
Non-Executive Director
From 12 October 2023
Mr Mark Clark
Executive Chairman
Full Year
Mr Kim Massey
Chief Executive Officer & Company Secretary
Full Year
Mr Paul Thomas
Chief Operating Officer
To 20 May 2024 (1)
Mr Paul Criddle
Chief Operating Officer
From 20 May 2024
Mr William Nguyen
Chief Financial Officer
From 18 June 2024
(1) Mr Paul Thomas was no longer considered KMP from 20 May 2024 but remained an employee of the Company at 30 June 2024.
The following table outlines the termination provisions for each current KMP:
Notice period
Payment in lieu
of notice
Entitlement to options
and rights on
termination
Mark Clark, Executive Chairman
Notice Period by Capricorn:
-
With or without reason
2 months
Up to 2 months
(1)
-
Serious misconduct
Nil
Nil
Notice Period by Executive:
2 months
Up to 2 months
As above
Fundamental change:
n/a
n/a
n/a
Kim Massey, Chief Executive Officer
Notice Period by Capricorn:
-
With or without reason
6 months
Up to 6 months
(1)
-
Serious misconduct
Nil
Nil
Notice Period by Executive:
3 months
3 months
As above
Fundamental change:
1 month
12 months
n/a
Paul Criddle, Chief Operating Officer
Notice Period by Capricorn:
With or without reason:
6 months
Up to 6 months
(1)
Serious misconduct:
Nil
Nil
Notice Period by Executive:
3 months
3 months
As above
Fundamental change:
1 month
12 months
n/a
William Nguyen, Chief Financial Officer
Notice Period by Capricorn:
With or without reason:
6 months
Up to 6 months
(1)
Serious misconduct:
Nil
Nil
Notice Period by Executive:
3 months
3 months
As above
Fundamental change:
1 month
12 months
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.
46
CAPRICORN METALS
Remuneration report (Audited) (Continued)
Remuneration for Key management personnel of the Group during the year ended 30 June 2024
FY2024
Short term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Salary and Fees
Other ^
Non-Cash
Benefits*
Superannuatio
n
Accrued annual
& long service
leave #
Options &
Rights
Termination
Payments
Total
Performance
Related
$
$
$
$
$
$
$
$
%
Non-Executive Directors
M Okeby
131,167
-
-
14,428
-
-
-
145,595
-
M Ertzen
129,417
-
-
14,236
-
-
-
143,653
-
B De Araugo
138,833
-
-
15,272
-
-
-
154,105
-
J Irvin (2)
86,462
-
-
9,511
-
-
-
95,973
-
Executive Directors
M Clark (1)
971,500
144,000
5,112
27,500
66,980
422,863
-
1,637,955
34.61%
Other Executives
K Massey (1)
638,500
96,000
5,112
27,500
28,549
168,775
-
964,436
27.45%
P Thomas (1), (3)
684,750
112,000
5,112
27,500
38,907
243,038
-
1,111,307
31.95%
P Criddle (4)
66,988
-
587
7,369
6,093
32,422
-
113,459
28.58%
W Nguyen (5)
10,904
-
182
1,145
1,078
6,588
-
19,896
33.11%
2,858,521
352,000
16,105
144,461
141,607
873,686
-
4,386,379
27.94%
^
Other short term benefits refer to a cash bonus payable to KMP for meeting STI targets.
*
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Company.
#
Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.
(1)
Mr Clark, Mr Massey and Mr Thomas elected to receive a portion of their superannuation entitlements above the statutorily required maximum amount as salary.
(2)
Ms Irvin commenced on 12 October 2023.
(3)
Mr Thomas was no longer considered KMP from 20 May 2024 but remained an employee of the Company at 30 June 2024.
(4)
Mr Criddle commenced on 20 May 2024. Share-based payment expenses relate to unissued performance rights pending approval.
(5)
Mr Nguyen commenced on 18 June 2024. Share-based payment expenses relate to unissued performance rights pending approval.
47
CAPRICORN METALS
Remuneration report (Audited) (Continued)
Remuneration for Key management personnel of the Group during the year ended 30 June 2023
FY2023
Short term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Termination
Payments
Salary and Fees
Performance
Related
Salary and Fees
Other ^
Non-Cash
Benefits*
Superannuatio
n
Accrued annual
& long service
leave #
Options &
Rights
$
$
$
$
$
$
$
$
%
Non-Executive Directors
M Okeby
150,000
-
-
17,125
-
-
-
167,125
-
M Ertzen
120,000
-
-
13,700
-
-
-
133,700
-
B De Araugo
120,000
-
-
13,700
-
-
-
133,700
-
Executive Directors
M Clark (1)
713,875
252,000
4,295
27,500
74,832
413,090
-
1,485,592
44.77%
Other Executives
K Massey (1)
534,250
168,000
4,295
27,500
36,296
277,796
-
1,048,137
42.53%
P Thomas (1)
644,750
196,000
4,295
27,500
64,147
359,214
-
1,295,906
42.84%
2,282,875
616,000
12,885
127,025
175,275
1,050,100
-
4,264,160
39.07%
^
Other short term benefits refer to a cash bonus paid to KMP for meeting STI targets.
*
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Company.
#
Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.
(1)
Mr Clark, Mr Massey and Mr Thomas elected to receive a portion of their superannuation entitlements above the statutorily required maximum amount as salary.
48
CAPRICORN METALS
Remuneration report (Audited) (Continued)
Movements in share holdings
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:
Held as at
1 July 2023
Issued on exercise
of options/rights
Net change
other*
Held as at
30 June 2024
Non-Executive Directors
M Okeby
6,615,385
-
(2,000,000)
4,615,385
M Ertzen
3,611,539
-
(2,011,539)
1,600,000
B De Araugo
74,550
-
-
74,550
J Irvin
-
-
-
-
Executive Directors
M Clark
22,172,000
120,000
(5,000,000)
17,292,000
Other Executives
K Massey
2,553,847
57,340
(457,340)
2,153,847
P Thomas
3,000,000
82,569
(1,500,000)
1,582,569
P Criddle
-
-
-
-
W Nguyen (1)
-
-
30,000
30,000
38,027,321
259,909
(10,938,879)
27,348,351
*
Unless stated otherwise, “Net change other” relates to on market purchases and sales of shares.
(1) W Nguyen was appointed as Chief Financial Officer effective 18 June 2024. He held 30,000 shares at that date.
Related Party Transactions with Key Management Personnel
Loans to Key Management Personnel and their related parties
There were no loans made to any Director, KMP and/or their related parties during the current or prior years.
Other transactions with Key Management Personnel
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.
Company Performance
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.
Restated
2020
2021
2022
2023
2024
$’000
$’000
$’000
$’000
$’000
Revenue
122
110
287,043
320,840
359,834
Net profit/(loss) after tax
(17,947)
(4,765)
89,483
4,399
87,138
Share price at year-end
1.79 (1)
1.90
3.13
4.03
4.78
Dividends paid
-
-
-
-
-
Basic earnings/(loss) per share
(4.30)
(1.39)
24.27
1.18
23.13
Net assets
95,508
130,460
247,535
256,537
309,265
(1) A share consolidation of one for every five shares was approved by shareholders in November 2019.
49
CAPRICORN METALS
Remuneration report (Audited) (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.
- END OF AUDITED REMUNERATION REPORT -
Signed in accordance with a resolution of the Board of Directors.
Mr Mark Clark
Executive Chairman
Perth, Western Australia
4 September 2024
50
CAPRICORN METALS
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.
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 2024 there have been:
i.
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
No contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
R Gambitta
Partner
Perth
4 September 2024
51
CAPRICORN METALS
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Note
2024
$’000
2023
$’000
Revenue
2
359,834
320,840
Cost of goods sold
3
(202,820)
(171,570)
Gross profit
157,014
149,270
Other income
2
26
34
Personnel costs
3
(7,570)
(5,175)
Share-based payment expense
29
(4,966)
(4,712)
Depreciation
3
(513)
(341)
Amortisation
3
(1,496)
(2,028)
Administrative expense
(2,797)
(2,567)
Exploration and evaluation expenditure
(91)
(66)
Net finance costs
4
(13,920)
(125,249)
Profit before income tax expense
125,687
9,166
Income tax expense
6
(38,549)
(4,767)
Profit attributable to members of the parent entity
87,138
4,399
Other comprehensive income:
Items that may be re-classified to profit or loss:
Exchange differences on translation of foreign operations
13
(7)
Movement in hedge reserve (net of tax)
(39,264)
-
Other comprehensive gain/(loss) for the year, net of tax
(39,251)
(7)
Total comprehensive income for the year attributable to members of the
parent entity
47,887
4,392
Earnings per share:
Basic profit/(loss) per share (cents per share)
5
23.13
1.18
Diluted profit/(loss) per share (cents per share)
5
23.02
1.17
The accompanying notes form part of these financial statements
52
CAPRICORN METALS
Consolidated statement of financial position
For the year ended 30 June 2024
Note
2024
$’000
2023
$’000
Current assets
Cash and cash equivalents
7
119,917
106,471
Receivables
8
3,255
2,535
Other assets
1,174
356
Inventories
9
16,073
16,619
Other financial assets
10
4,865
3,517
Assets classified as held for sale
11
2,500
2,500
Total current assets
147,784
131,998
Non-current assets
Inventories
9
77,909
47,546
Other financial assets
10
1,294
2,790
Plant and equipment
12
149,951
153,302
Right of use assets
13
39,883
45,364
Deferred exploration and evaluation costs
14
137,028
105,723
Mine properties under development
15
18,819
-
Mine properties
16
50,891
49,762
Total non-current assets
475,775
404,487
Total assets
623,559
536,485
Current liabilities
Trade and other payables
18
50,293
33,226
Lease liabilities
19
9,633
9,428
Borrowings
20
50,658
613
Provisions
21
2,031
1,457
Total current liabilities
112,615
44,724
Non-current liabilities
Lease liabilities
19
23,819
31,769
Borrowings
20
-
50,000
Provisions
21
32,762
30,452
Other financial liabilities
22
97,282
97,103
Deferred tax liabilities
23
47,816
25,900
Total non-current liabilities
201,679
235,224
Total liabilities
314,294
279,948
Net assets
309,265
256,537
Equity
Issued capital
24
203,297
203,422
Reserves
25
(35,786)
3,134
Retained earnings
26
141,754
49,981
Total equity
309,265
256,537
The accompanying notes form part of these financial statements
53
CAPRICORN METALS
Consolidated statement of changes in equity
For the year ended 30 June 2024
Issued
capital
Retained
earnings
Foreign currency
translation
reserve
Hedge
reserve
Share-based
payment
reserve
Total
Note
$’000
$’000
$’000
$’000
$’000
$’000
Balance as at 1 July 2022
203,524
37,910
(1,048)
-
7,149
247,535
Profit/(loss) for the year
-
4,399
-
-
-
4,399
Other comprehensive income
-
-
(7)
-
-
(7)
Total comprehensive income
-
4,399
(7)
-
-
4,392
Issue of shares
24
-
-
-
-
-
-
Cost of capital raised
24
(102)
-
-
-
-
(102)
Share based payments
29
-
-
-
-
4,712
4,712
Transfer
25
-
7,672
-
-
(7,672)
-
Balance as at 30 June 2023
203,422
49,981
(1,055)
-
4,189
256,537
Balance as at 1 July 2023
203,422
49,981
(1,055)
-
4,189
256,537
Profit/(loss) for the year
-
87,138
-
-
-
87,138
Other comprehensive income
-
-
13
(39,264)
-
(39,251)
Total comprehensive income
-
87,138
13
(39,264)
-
47,887
Issue of shares
24
100
-
-
-
-
100
Cost of capital raised
24
(225)
-
-
-
-
(225)
Share based payments
29
-
-
-
-
4,966
4,966
Transfer
25
-
4,635
-
-
(4,635)
-
Balance as at 30 June 2024
203,297
141,754
(1,042)
(39,264)
4,520
309,265
The accompanying notes form part of these financial statements
54
CAPRICORN METALS
Consolidated statement of cash flows
For the year ended 30 June 2024
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from gold sales
359,727
320,747
Payments to suppliers and employees
(200,835)
(164,124)
Interest received
5,669
2,028
Interest paid
(6,633)
(6,218)
Other income
256
127
Net cash from operating activities
7
158,184
152,560
Cash flows from investing activities
Payments for property, plant and equipment
(16,872)
(11,474)
Payments for capitalised exploration expenditure
(31,982)
(35,606)
Payments for mine properties under development
(16,786)
(23)
Payment for acquisition of assets
-
(200)
Net cash used in investing activities
(65,640)
(47,303)
Cash flows from financing activities
Transaction costs from issue of shares
-
135
Repayment of borrowings
-
(15,000)
Payment of lease liabilities
(9,515)
(8,644)
Payments for gold put options
(5,235)
(3,674)
Payments for gold forward contracts
(64,348)
(33,105)
Net cash flows used in financing activities
(79,098)
(60,288)
Net increase in cash held
13,446
44,969
Cash and cash equivalent at the beginning of the year
106,471
61,502
Effect of exchange rates on cash holdings in foreign currencies
-
-
Cash and cash equivalents at the end of the year
7
119,917
106,471
The accompanying notes form part of these financial statements
55
CAPRICORN METALS
Notes to the consolidated financial statements
Page
Basis of preparation
57
Performance for the year
1.
Segment information
58
2.
Revenue & other income
59
3.
Expenses
60
4.
Net finance costs
62
5.
Earnings per share
62
6.
Income tax
63
7.
Cash and cash equivalents
64
Assets
8.
Receivables
64
9.
Inventories
65
10.
Other financial assets
65
11.
Assets held for sale
68
12.
Plant and equipment
68
13.
Right of use assets
69
14.
Deferred exploration and evaluation costs
70
15.
Mine properties under development
71
16.
Mine properties
71
17.
Impairment of non-financial assets
72
Liabilities
18.
Trade and other payables
72
19.
Lease liabilities
73
20.
Borrowings
74
21.
Provisions
74
22.
Other financial liabilities
76
23.
Deferred tax liabilities
78
Equity
24.
Issued capital
79
25.
Reserves
80
26.
Retained earnings
80
Risk
27.
Financial risk management
81
28.
Capital management
84
Other Disclosures
29.
Share-based payments
84
30.
Related parties
89
31.
Parent entity disclosures
90
32.
Deed of cross guarantee
90
33.
Commitments
91
34.
Contingencies
91
35.
Auditors’ remuneration
91
36.
Subsequent events
91
37.
New accounting standards and interpretations issued but not yet effective
91
56
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
BASIS OF PREPARATION
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 4 September 2024.
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.
Principles of consolidation
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.
Functional and presentation currency
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.
57
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Key estimate and judgements
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
Expenses
Page 60
Note 9
Inventories
Page 65
Note 14
Deferred exploration and evaluation costs
Page 70
Note 17
Impairment
Page 72
Note 21
Provisions
Page 74
Note 22
Other Financial Liabilities
Page 76
Note 29
Share-based payments
Page 84
New standards and interpretations adopted
The Group has not elected to early adopt any new or amended standards or interpretations that are issued but not yet
effective.
The Group has not adopted any new standard and amendments or interpretation to standards from 1 July 2023 which
had a material effect on the financial position or performance of the Group.
New standards and interpretations issued but not yet effective
Refer to Note 37
Notes to the financial statements
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
PERFORMANCE FOR THE YEAR
This section focuses on the results and performance of the Group, covering profitability, return to shareholders via
earnings per share combined with cash generation.
1.
SEGMENT INFORMATION
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.
58
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Karlawinda
Mt Gibson
Unallocated
Total
30 Jun
2024
30 Jun
2023
30 Jun
2024
30 Jun
2023
30 Jun
2024
30 Jun
2023
30 Jun
2024
30 Jun
2023
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Revenue
Revenue
359,727
320,747
-
-
107
93
359,834
320,840
Other income
-
-
-
-
26
34
26
34
359,727
320,747
-
-
133
127
359,860
320,874
Result
Profit/(loss)
before income tax
141,103
22,270
(168)
(35)
(15,248)
(13,069)
125,687
9,166
Net finance costs
(13,852)
(125,237)
16
7
(84)
(19)
(13,920)
(125,249)
Depreciation
(22,434)
(21,274)
(165)
(49)
(508)
(335)
(23,107)
(21,658)
Amortisation
(5,790)
(5,911)
-
-
-
-
(5,790)
(5,911)
Assets/Liabilities
Segment assets
474,675
433,908
137,317
93,441
11,567
9,136
623,559
536,485
Segment liabilities
(250,481)
(240,421)
(12,652)
(11,752)
(51,161)
(27,775)
(314,294)
(279,948)
2.
REVENUE AND OTHER INCOME
Accounting policies
Gold Sales
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.
Interest
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
Rental Income
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.
Other Revenue
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”).
Government Grants
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.
59
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Revenue and other income
2024
$’000
2023
$’000
Revenue
Gold sales
359,727
320,747
Rental income
107
93
359,834
320,840
Other income
Other
26
34
26
34
Gold forward contracts
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 2024 the Company announced that it had cash settled 52,000 ounces of gold forward contracts it held,
consequently in accordance with accounting standards the remaining gold forwards are recognised in the balance sheet
at fair value (refer Note 22).
Set out below is the settlement timeframe for the remaining gold forward contracts as at 30 June 2024.
Gold for physical
delivery
Average
Contracted
gold sale price
Value of
committed sales
Mark-to-
market
ounces
$
$’000
$’000
Between one and five years
-
Fixed forward contracts
55,000
2,327
127,985
(74,921)
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 $3,492 (2023: $2,885). 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.
3.
EXPENSES
Accounting policies
Cash costs of production
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.
Defined contribution superannuation benefits
All employees of the Group, located in Australia, receive defined contribution superannuation entitlements, for which
the Group pays the fixed superannuation guarantee contribution (currently 11% 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.
Depreciation
Depreciation of mine specific plant, equipment, buildings and infrastructure with useful lives the same or greater than
the expected life of mine are charged to the statement of profit and loss and other comprehensive income on a unit-of-
production basis over the life of the mine using tonnes of ore milled.
Depreciation of other assets with useful life shorter than the life of mine are charged to the statement of comprehensive
income over the assets useful life using the straight line method as follows:
60
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Furniture and equipment
2 - 5 years
Plant and equipment
2 - 10 years
Mobile plant and equipment
2 - 5 years
Buildings and infrastructure
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.
Amortisation
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
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.
Expenses
2024
$’000
2023
$’000
Costs of goods sold
Cash costs of production
(156,952)
(128,749)
Royalties
(19,154)
(17,680)
Depreciation of mine plant and equipment
(22,420)
(21,258)
Amortisation of mine properties (refer Note 16)
(4,294)
(3,883)
(202,820)
(171,570)
Personnel costs
Salaries and wages
(23,620)
(20,658)
Defined contribution superannuation
(2,291)
(1,945)
Employee bonuses
(1,090)
-
Other employee benefits expense
(1,896)
(2,131)
Less: Amounts capitalised
5,189
4,290
Less: Amounts included in cost of goods sold
16,138
15,269
(7,570)
(5,175)
Depreciation
Plant and equipment depreciation (refer to Note 12)
(15,920)
(14,757)
Right of use asset depreciation (refer to Note 13)
(7,187)
(6,901)
Less: Amounts capitalised
174
59
Less: Amounts included in cost of goods sold
22,420
21,258
(513)
(341)
Amortisation
Mine properties amortisation (refer note 16)
(4,294)
(3,883)
Financial asset amortisation (refer note 10)
(1,496)
(2,028)
Less: Amounts included in cost of goods sold
4,294
3,883
(1,496)
(2,028)
Key estimates and judgements – Unit-of-production method of depreciation and amortisation
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.
61
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
4.
NET FINANCE COSTS
Accounting policies
Borrowing costs
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.
Net finance costs
2024
$’000
2023
$’000
Interest revenue
5,783
2,287
Option Premium Income
123
-
Interest on borrowings
(3,893)
(3,127)
Interest on lease liabilities (refer to Note 19)
(2,809)
(3,318)
Unwinding of discount on provisions (refer Note 21)
(802)
(718)
Fair value loss on equity investments (refer Note 10)
(214)
(595)
Fair value loss on gold put options (refer Note 10)
(3,673)
(1,110)
Fair value loss on gold call options (refer Note 22)
(8,435)
(2,386)
Fair value loss on gold forwards (1)
-
(83,177)
Cost of gold forwards (2)
-
(33,105)
(13,920)
(125,249)
(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.
5.
EARNINGS PER SHARE
Accounting policy
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.
Earnings per share
2024
Cents
2023
Cents
Basic earnings per share (BEPS)
23.13
1.18
Diluted earnings per share (DEPS)
23.02
1.17
2024
$’000
2023
$’000
Earnings used in calculating BEPS and DEPS
Profit attributable to members of the parent entity
87,138
4,399
62
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
2024
Number
2023
Number
Weighted average number of ordinary shares
Weighted average number of ordinary shares used to calculate BEPS
376,764,998
373,757,298
Adjustments for calculation of DEPS:
Performance rights
1,691,808
1,963,732
Weighted average number of ordinary shares used to calculate DEPS
378,456,806
375,721,030
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.
6.
INCOME TAX
Accounting policy
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.
Amounts recognised in profit and loss
2024
$’000
2023
$’000
(a) Tax expense
Current tax
-
-
Deferred tax
38,549
4,767
Total tax expense for the period
38,549
4,767
(b) Numerical reconciliation between tax expense and pre-tax net profit or (loss)
Net profit before tax
125,687
9,166
Corporate tax rate applicable
30%
30%
Income tax expense on above at applicable corporate rate
37,706
2,750
Increase/(decrease) income tax due to tax effect of:
Non-deductible expenses
1,546
1,425
Movement in unrecognised temporary differences
(488)
829
Deductible equity raising costs
(215)
(237)
Income tax expense attributable to entity
38,549
4,767
(c) Amounts charged or (credited) directly to equity
Relating to equity raising costs
194
237
Relating to hedge liabilities
(16,827)
-
(16,633)
237
63
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
7.
CASH AND CASH EQUIVALENTS
Accounting policy
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less.
Cash and cash equivalents
2024
$’000
2023
$’000
Cash at bank
119,917
106,471
Reconciliation of profit after tax to net cash flow from operations:
Profit after income tax
87,138
4,399
Adjustments for:
Depreciation
22,933
21,599
Amortisation
5,790
5,911
Unwinding of discount on provisions
802
718
Unrealised loss on derivatives
12,108
86,672
Fair value loss on financial assets
214
595
Share based payment
5,077
4,712
Unrealised foreign exchange gain
3
(6)
Payments for gold derivatives
-
33,105
Changes in assets and liabilities
Increase in receivables
(719)
(300)
Increase in other current assets
(737)
(61)
Increase in inventories
(29,817)
(19,369)
Increase in payables and accruals
16,008
9,228
Increase in provisions
835
590
Increase in deferred tax liabilities
38,549
4,767
Cashflow from operating activities
158,184
152,560
Non-cash investing and financing activities
There were no non-cash investing and financing activities during the year ended 30 June 2024 (2023: Nil).
ASSETS
This section shows the assets used to generate the Group’s trading performance.
8.
RECEIVABLES
Accounting policy
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.
64
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
9.
INVENTORIES
Accounting policy
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.
Inventories
2024
$’000
2023
$’000
Current
Ore stockpiles
7,455
9,460
Gold in circuit
4,725
3,972
Bullion on hand
2,571
1,805
Consumable stores
1,322
1,382
16,073
16,619
Non-Current
Ore stockpiles
77,909
47,546
Key estimates and judgements – Inventories
Net realisable value tests are performed at each reporting date and represent the estimated forecast sales price of the
gold contained in inventories with reference to externally published forecast prices, 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.
10. OTHER FINANCIAL ASSETS
Accounting policy
The Group’s other financial assets include equity investments, gold call options and gold put options.
Recognition and initial measurement
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.
Receivables
2024
$’000
2023
$’000
GST receivable
2,237
1,647
Security deposits
311
386
Fuel tax credit receivable
142
150
Interest receivable
472
283
Other receivables
93
69
3,255
2,535
65
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
• at amortised cost;
• ‘fair value in other comprehensive income’ (“FVOCI”) – equity investment; or
• FVTPL.
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.
Amortised cost
Amortised cost is calculated as:
• the amount at which the financial asset is measured at initial recognition;
• less principal repayments;
• plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the
maturity amount calculated using the effective interest method; and
• less any reduction for impairment.
The effective interest method is used to allocate interest income or interest expense over the relevant period and is
equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs
and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual
term) of the financial instrument to the net carry amount of the financial asset.
Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential
recognition of an income or expense in profit or loss.
The Group does not designate any interest in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial statements.
Fair values
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.
Derecognition
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.
66
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Other financial assets
2024
$’000
2023
$’000
Current
Gold put options at FVTPL
4,126
2,564
Equity investments at FVTPL
739
953
4,865
3,517
Non-current
Gold call options at FVTPL
1,294
2,790
Gold option assets
Gold option assets represent the fair value gold call option contracts entered into on 6 January 2020 and gold put option
contracts purchased on 14 June 2024.
Gold option assets
2024
$’000
2023
$’000
As at 1 July
5,354
4,818
Additions
5,235
3,674
Amortisation (refer Note 3)
(1,496)
(2,028)
Fair value adjustments (refer Note 4)
(3,673)
(1,110)
As at 30 June
5,420
5,354
Equity investments
Equity investments represent the fair value of shares held by the Company in ASX listed Companies.
On 30 May 2024 DiscovEx completed consolidation of capital on a one share for every 100 shares held basis.
Equity investments
2024
$’000
2023
$’000
As at 1 July
953
1,348
Additions
-
200
Fair value adjustments (refer Note 4)
(214)
(595)
As at 30 June
739
953
Fair value of listed shares and assumptions
2024
2023
Evion Group NL (formerly BlackEarth Minerals NL)
Fair value per listed share
$0.018
$0.036
Closing quoting bid price per share
$0.018
$0.036
Latitude 66 Limited (formerly DiscovEx Resources Limited)
Fair value per listed share
$0.200
$0.250 (1)
Closing quoting bid price per share
$0.200
$0.250 (1)
(1) Share price reflected on a 100:1 basis due to a share consolidation.
67
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
11. ASSETS HELD FOR SALE
Accounting policy
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable
that they will be recovered primarily through the sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to
sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets, except
deferred tax assets, employee benefits assets or investment property, which continue to be measured in accordance with
the Group’s other accounting policies.
Impairment losses on initial classification as held-for-sale or held-for-distribution and subsequent gains and losses on
remeasurement are recognised in profit or loss. Once classified as held-for-sale, intangible assets and property, plant and
equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
The held-for-sale property is subject to review and revalued on the basis of independent valuations. Any revaluation
adjustment to the carrying amount is recognised in other comprehensive income and accumulated in equity under the
heading of asset revaluation reserve.
Assets held for sale
2024
$’000
2023
$’000
Property asset
2,500
2,500
2,500
2,500
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 $3,047,262 as at 30 June 2024 (2023: AUD $3,027,733). Based on the current valuation,
the Directors considered the carrying value appropriate for the year ended 30 June 2024.The fair value of the freehold
land was determined based on the market comparable approach that reflects recent transaction prices for similar
properties.
12. PLANT AND EQUIPMENT
Accounting policy
Each class of property, plant and equipment is carried at cost or fair value, less, where applicable, any accumulated
depreciation and impairment losses.
Property
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.
Infrastructure, mobile plant and equipment, plant and equipment and furniture and equipment
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.
Capital work in progress (“CWIP”)
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.
68
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Buildings &
Infrastructure
Plant &
Equipment
Mobile Plant
& Equipment
Furniture &
Equipment
Capital
WIP
Total
Plant and equipment
$’000
$’000
$’000
$’000
$’000
$’000
Net carrying amount at 1 July 2022
43,049
103,270
3,148
7,009
2,645
159,121
Additions
1,738
1,656
1,263
1,509
2,808
8,974
Depreciation
(3,505)
(9,032)
(1,149)
(1,071)
-
(14,757)
Amounts written off
-
(36)
-
-
-
(36)
Net carrying amount at 30 June 2023
41,282
95,858
3,262
7,447
5,453
153,302
As at 30 June 2023
Cost
49,832
116,817
5,243
9,886
5,453
187,231
Accumulated depreciation
(8,550)
(20,959)
(1,981)
(2,439)
-
(33,929)
Net carrying amount at 30 June 2023
41,282
95,858
3,262
7,447
5,453
153,302
Buildings &
Infrastructure
Plant &
Equipment
Mobile Plant
& Equipment
Furniture &
Equipment
Capital
WIP
Total
Plant and equipment
$’000
$’000
$’000
$’000
$’000
$’000
Net carrying amount at 1 July 2023
41,282
95,858
3,262
7,447
5,453
153,302
Additions
1,475
3,822
2,771
791
5,560
14,419
Transfer to mine properties under
development
-
-
-
-
(1,850)
(1,850)
Depreciation
(3,597)
(9,585)
(1,525)
(1,213)
-
(15,920)
Net carrying amount at 30 June 2024
39,160
90,095
4,508
7,025
9,163
149,951
As at 30 June 2024
Cost
51,307
120,639
8,014
10,677
9,163
199,800
Accumulated depreciation
(12,147)
(30,544)
(3,506)
(3,652)
-
(49,849)
Net carrying amount at 30 June 2024
39,160
90,095
4,508
7,025
9,163
149,951
13. RIGHT-OF-USE ASSETS
Accounting policy
Right-of-use (“ROU”) 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.
69
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Right of use assets
2024
$’000
2023
$’000
As at 1 July
45,364
47,972
Additions to right-of-use assets
1,706
4,293
Depreciation charge for the year (refer to Note 3)
(7,187)
(6,901)
As at 30 June
39,883
45,364
Payments associated with short-term leases and leases of low value assets for the year were $1,045,000 (2023:
$1,523,000).
14. DEFERRED EXPLORATION AND EVALUATION COSTS
Accounting policy
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.
Deferred exploration and evaluation costs
2024
$’000
2023
$’000
As at 1 July
105,723
77,297
Expenditure for the period
35,209
35,160
Acquisition of tenements
305
-
Transfer to mine properties
(4,209)
(6,734)
As at 30 June
137,028
105,723
Key estimates and judgements – Exploration and evaluation expenditure
Exploration expenditure
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.
Planned exploration expenditure
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.
70
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
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.
Exploration commitments at reporting date not recognised as liabilities
2024
$’000
2023
$’000
Within one year
4,008
3,582
4,008
3,582
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.
15. MINE PROPERTIES UNDER DEVELOPMENT
Accounting policy
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.
Mine properties under development
2024
$’000
2023
$’000
As at 1 July
-
-
Construction Expenditure
16,969
-
Transfers from CWIP
1,850
As at 30 June
18,819
-
Construction expenditure relates to the Mt Gibson Gold Project camp construction.
16. MINE PROPERTIES
Accounting policy
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.
Other Pre-production
Rehabilitation
Total
Mine properties
$’000
$’000
$’000
$’000
Net carrying amount at 1 July 2023
19,238
15,567
14,957
49,762
Additions
-
-
1,213
1,213
Transfers from Exploration
4,210
-
-
4,210
Amortisation (refer note 3)
(1,677)
(1,335)
(1,282)
(4,294)
Net carrying amount at 30 June 2024
21,771
14,232
14,888
50,891
71
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Other Pre-production
Rehabilitation
Total
$’000
$’000
$’000
$’000
As at 30 June 2024
Cost
26,422
18,865
19,469
64,756
Accumulated amortisation
(4,651)
(4,633)
(4,581)
(13,865)
Net carrying amount at 30 June 2024
21,771
14,232
14,888
50,891
17. IMPAIRMENT OF NON-FINANCIAL ASSETS
Accounting policy
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.
Key estimates and judgements – Determination of mineral resources and reserves
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
LIABILITIES
This section shows the liabilities incurred as a result of the trading activities of the Group.
18. TRADE AND OTHER PAYABLES
Accounting policy
Trade and other payables are initially recognised at fair value through profit or loss and subsequently measured at
amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year
that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these
goods and services. Trade and other payables are presented as current liabilities unless payment is not due within 12
months.
Trade and other payables
2024
$’000
2023
$’000
Trade payables
31,995
17,141
Accrued expenses
11,850
10,260
Other payables
6,448
5,825
50,293
33,226
72
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
19. LEASE LIABILITIES
Accounting policy
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.
Lease liabilities
2024
$’000
2023
$’000
Current
Lease liabilities
9,633
9,428
Non-Current
Lease liabilities
23,819
31,769
Interest expense in relation to lease liabilities for the year ended 30 June 2024 was $2,809,000 (2023: $3,318,000) (refer
to Note 4).
Total cash outflows relating to leases during the year were $12,322,000 (2023: $11,962,000) comprising, principal
($9,515,000) and interest ($2,807,000) 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 2024, including non-lease
components such as labour, totalled $108,805,000 (2023: $77,223,000).
Payments associated with short-term leases and leases of low value assets for the year were $1,045,000 (2023:
$1,706,000).
73
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
20. BORROWINGS
Accounting policy
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.
Borrowings
2024
$’000
2023
$’000
Current
Bank loans
50,658
613
Non-Current
Bank loans
-
50,000
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.
21. PROVISIONS
Accounting policy
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.
Rehabilitation provision
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.
Short-term employee benefits
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.
74
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
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.
Other long-term employee benefits
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.
Provisions
2024
$’000
2023
$’000
Current
Annual leave
1,821
1,431
Rehabilitation
210
26
2,031
1,457
Non-Current
Long service leave
775
338
ROU asset demobilisation
785
743
Rehabilitation
31,202
29,371
32,762
30,452
Provision for rehabilitation
2024
$’000
2023
$’000
As at 1 July
29,397
28,416
Provisions raised during the year
-
283
Provisions used during the year
-
(19)
Provisions re-measured during the year
1,213
(1)
Unwinding of the discount (refer Note 4)
802
718
As at 30 June
31,412
29,397
Key estimates and judgements – Rehabilitation provision
The Group assesses site rehabilitation liabilities on an annual basis. The provision recognised is based on an assessment
of the estimated cost of closure and reclamation of the areas 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.
75
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
22. OTHER FINANCIAL LIABILITIES
Accounting policy
The Group’s other financial liabilities include gold call options and gold forwards.
Recognition and initial measurement
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.
Classification and subsequent measurement
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.
Amortised cost
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.
Fair values
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.
Derecognition
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.
Hedge accounting
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.
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.
76
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Cashflow hedges
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.
Other financial liabilities
2024
$’000
2023
$’000
Non-current
Gold call options at FVTPL
22,361
13,926
Gold forwards at FVTPL
74,921
83,177
97,282
97,103
Gold call options
Gold call option liability refers to the fair value of the gold call option contract entered into on 6 January 2020. The
contract involves the sale of 16,700 ounces at a strike price of $2,260 per ounce and an expiry date of 30 June 2025.
Subsequent measurement of the gold call option contracts is at fair value at balance date with any changes in the fair
value immediately recognised in the profit or loss.
Gold call options
2024
$’000
2023
$’000
As at 1 July
13,926
11,540
Fair value adjustments (refer Note 4)
8,435
2,386
As at 30 June
22,361
13,926
Gold forwards
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.
Gold forwards
2024
$’000
2023
$’000
As at 1 July
83,177
-
Fair value adjustments
56,092
83,177
Closure of gold forward contracts
(64,348)
-
As at 30 June
74,921
83,177
In June 2024, the Company reduced its gold forward contracts by 52,000 ounces at a cost of $64.3 million. This movement
has been reflected by a reduction in the gold hedge liability.
77
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
23. DEFERRED TAX LIABILITIES
Accounting policy
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.
Deferred tax assets and liabilities
2024
$’000
2023
$’000
(a) Recognised deferred tax assets and liabilities
30%
30%
Deferred tax liabilities
Prepayments
80
4
Exploration and mine properties
44,060
31,697
Inventory
8,766
6,535
Plant and equipment
41,340
44,029
Other
-
85
Gross deferred tax liabilities
94,246
82,350
Set-off of deferred tax assets
(46,430)
(56,450)
Net deferred tax liabilities
47,816
25,900
Deferred tax assets
Employee provisions
779
531
Other provisions and accruals
135
56
Derivative assets and liabilities
30,231
28,327
Rehabilitation provision
9,424
8,819
Blackhole previously expensed
1
4
Blackhole equity raising costs
96
290
Tax losses
5,730
18,244
Other
34
179
Gross deferred tax assets
46,430
56,450
Set-off of deferred tax liabilities
(46,430)
(56,450)
Net deferred tax assets
-
-
(b) Reconciliation of deferred tax, net:
Opening balance at 1 July – net deferred tax liabilities
(25,900)
(20,896)
Income tax expense recognised in profit or loss
(38,549)
(4,767)
Income tax (expense)/benefit recognised in equity
16,633
(237)
Closing balance at 30 June – net deferred tax liabilities
(47,816)
(25,900)
Key estimates and judgements – Deferred tax assets
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.
78
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Tax consolidation
The Company and its wholly-owned Australian resident entities became part of a tax-consolidated group on 1 July 2016.
As a consequence, all members of the tax-consolidated group are taxed as a single entity from that date. The head
entity within the tax consolidated group is Capricorn Metals Limited.
The head entity, in conjunction with other members of the tax-consolidated group, have entered into a tax funding
arrangement which sets out the funding obligations of members of the tax-consolidated group in respect of tax
amounts. Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the subsidiaries
are assumed by the head entity and are recognised by the Company as intercompany receivables (or payables).
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of
the head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.
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.
EQUITY
This section outlines how the Group manages its capital.
24. ISSUED CAPITAL
Accounting policy
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.
2024
2023
Issued capital
$’000
$’000
Ordinary shares - issued and fully paid
203,297
203,422
Movement in ordinary shares on issue
Number of
Shares
$’000
As at 1 July 2022
371,925,185
203,524
Issue of shares on exercise of performance rights (1)
4,032,990
-
Transaction costs
-
(102)
As at 30 June 2023
375,958,175
203,422
As at 30 June 2023
375,958,175
203,422
Issue of shares on project deliverable bonus (2)
22,779
100
Issue of shares on exercise of performance rights (3)
1,547,077
-
Transaction costs
-
(31)
Share Issue costs – Tax
-
(194)
As at 30 June 2024
377,528,031
203,297
(1) 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.
(2)
On 1 December 2023, 22,779 shares with a fair value of $4.39 a share were issued in consideration as a deliverable bonus to
Tetris Environmental Pty Ltd for the Mt Gibson Gold project.
(3) During the 2024 financial year 1,547,077 performance rights were exercised for nil value to employees in accordance with the
shareholder approved Performance Rights Plan.
79
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
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.
25. RESERVES
Share-based
payment reserve
Foreign currency
translation
reserve
Hedge
Reserve
Total
Reserves
Reserves
$’000
$’000
$’000
$’000
As at 1 July 2022
7,149
(1,048)
-
6,101
Share-based payment transactions (refer note
29)
4,712
-
-
4,712
Translation movement for the year
-
(7)
-
(7)
Transfers (1)
(7,672)
-
-
(7,672)
As at 30 June 2023
4,189
(1,055)
-
3,134
Share-based payment transactions (refer note
29)
4,966
-
-
4,966
Translation movement for the year
-
13
-
13
Hedge Reserve (2)
-
-
(39,264)
(39,264)
Transfers (1)
(4,635)
-
-
(4,635)
As at 30 June 2024
4,520
(1,042)
(39,264)
(35,786)
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).
2)
Hedge Reserve reflects the mark-to-market changes in the fair value of the hedging derivatives (net of tax).
Share-based payments reserve
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.
Foreign currency translation reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign controlled
subsidiaries.
Hedge reserve
The hedge reserve is used to reflect the effective portion of the accumulated changes in the fair value of the gold hedge
liability.
26. RETAINED EARNINGS
Retained earnings
2024
$’000
2023
$’000
As at 1 July
49,981
37,910
Profit for the year
87,138
4,399
Transfers (1)
4,635
7,672
As at 30 June
141,754
49,981
(1)
Transfers refers to options and performance rights that were either forfeited or expired in the current period that have been
transferred from reserves (refer to Note 25).
80
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
RISK
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s
financial position and performance.
27. FINANCIAL RISK MANAGEMENT
In common with other businesses, the Group is exposed to risks that arise from its use of financial instruments. The
Group’s key financial instruments comprise cash and cash equivalents, trade and other receivables, gold option assets,
trade and other payables, lease liabilities, gold call options, gold forwards and borrowings.
In June 2024, the Company announced that it had reduced its gold forward contracts by 52,000 ounces to provide further
exposure to any increase in the A$ gold price. The closure of the gold forwards means the Company does not have any
hedging delivery obligations until December 2025.
The restructure of the gold forwards in June 2023 led to the adoption of hedge accounting from 1 July 2024. The
remaining gold forwards are now valued through the Company’s reserves and recognised in the profit and loss statement
on the designated delivery dates of the contracts. 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.
Categories of financial instruments
2024
$’000
2023
$’000
Financial assets
Cash and cash equivalents
119,917
106,471
Receivables
3,255
2,535
Equity investments
739
953
Gold call options
1,294
2,790
Gold put options
4,126
2,564
129,331
115,313
Financial liabilities
Trade and other payables
50,293
33,226
Lease liabilities
33,452
41,197
Borrowings
50,658
50,613
Gold call options
22,361
13,926
Gold forwards
74,921
83,177
231,685
222,139
Market risk
Foreign currency risk
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.
81
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
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.
Interest rate risk
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Interest-bearing financial instruments
2024
$’000
2023
$’000
Fixed rate instruments
Term deposits
311
386
Lease liabilities
(33,452)
(41,197)
(33,141)
(40,811)
Variable rate instruments
Cash and cash equivalents
119,917
106,471
Borrowings
(50,658)
(50,613)
69,259
55,858
Fair value sensitivity analysis for fixed rate instruments
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.
Cash flow sensitivity analysis for variable rate instruments
A change of 200 basis points (2023: 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.
2024
2023
200bp
200bp
200bp
200bp
increase
decrease
increase
decrease
Interest-bearing financial instruments
$’000
$’000
$’000
$’000
Variable rate instruments
1,385
(1,385)
1,117
(1,117)
Commodity price risk
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 relating to the gold forwards of a $100 change in the spot price of gold
as at 30 June 2024 (2023: $100).
2024
2023
$100
$100
$100
$100
Increase
decrease
increase
decrease
$’000
$’000
$’000
$’000
Gold forwards
(5,500)
5,500
(10,700)
10,700
The following table reflects the impact on profit or loss relating to the gold call options and the gold put options of a $100
change in the spot price of gold as at 30 June 2024 (2023: $100).
82
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
2024
2023
$100
$100
$100
$100
Increase
decrease
increase
decrease
$’000
$’000
$’000
$’000
Gold call options
(1,670)
1,670
(1,670)
1,670
Gold put options
(3,117)
5,200
(2,564)
5,100
Credit risk
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.
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.
Liquidity risk
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.
Financial liability maturity analysis
Carrying
amount
liabilities
Total
contractual
cash flows
<6
months
6-12
months
1-2
years
2-5
years
>5 years
2024
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Trade and other payables
50,293
50,293
50,293
-
-
-
-
Lease liabilities
33,452
40,838
5,829
5,827
9,943
8,419
10,820
Borrowings
50,658
54,556
2,607
51,949
-
-
-
Gold forwards
74,921
74,921
-
-
42,921
32,000
-
209,324
220,608
58,729
57,776
52,864
40,419
10,820
Carrying
amount
liabilities
Total
contractual
cash flows
<6
months
6-12
months
1-2
years
2-5
years
>5 years
2023
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Trade and other payables
33,226
33,226
33,226
-
-
-
-
Lease liabilities
41,197
50,515
6,053
5,915
11,280
15,074
12,193
Borrowings
50,613
60,408
2,245
1,633
3,265
53,265
-
Gold forwards
83,177
83,177
-
-
31,697
51,480
-
208,213
227,326
41,524
7,548
46,242
119,819
12,193
Financial instruments measured at fair value
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).
83
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Included within Level 1 of the hierarchy are the Evion Group NL (formerly BlackEarth Minerals NL) and Latitude 66 Limited
(formerly 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.
Included within Level 2 of the hierarchy is the gold put options, gold call options and the gold forwards.
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.
28. CAPITAL MANAGEMENT
Risk management
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.
OTHER DISCLOSURES
This section provides information on items which require disclosure to comply with Australian Standards and other
regulatory requirements.
29. SHARE BASED PAYMENTS
Accounting policy
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”).
Assets
Liabilities
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Level 1
739
953
-
-
Level 2
4,126
2,564
(97,282)
(97,103)
Level 3
-
-
-
-
4,865
3,517
(97,282)
(97,103)
84
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
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.
Plans
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 29 November 2023 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:
2024
2023
Recognised share-based payments expense
$’000
$’000
Performance rights expense
4,966
4,712
Performance rights
The following table outlines the number and movements in Performance rights during the year:
2024
2023
Performance rights
Number of
Rights
Number of
Rights
Outstanding as at 1 July
1,963,732
5,440,818
Issued from prior year
216,400
-
Granted during the year
1,181,753
920,304
Forfeited during the year
(123,000)
(148,000)
Exercised during the year
(1,547,077)
(4,032,990)
Unissued during the year
-
(216,400)
Outstanding at end of the year
1,691,808
1,963,732
Exercisable as at 30 June
-
-
Financial year 2021
In October 2020, 325,000 Performance rights were granted to employees of the Company under the Group’s
Performance Rights Plan. 50% of rights vested on 30 September 2022 and the remaining rights vested 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 vested in equal proportions on 18/1/2023 and 18/1/2024 and the remaining 200,000
Performance vested 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.
85
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
The fair value of the Performance rights granted during Financial year 2021 was $1,351,250. The fair value at the grant
date was estimated using a Black Scholes option pricing model.
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
Item
Issue 1
Issue 2
Issue 3
Grant date
19 Oct 2020
16 Jun 2021
16 Jun 2021
Value at grant date
$1.77
$1.94
$1.94
Exercise price
nil
nil
nil
Dividend yield
0%
0%
0%
Risk free rate
0.13% - 0.14%
0.04% - 0.14%
0.04% - 0.14%
Volatility
95% - 123%
91% - 118%
91% - 118%
Performance period (yrs)
1.95 - 2.95
1.59 - 2.59
1.59 - 2.59
Test date
30/09/22 & 30/09/23
18/01/23 & 18/01/24
29/03/23 & 29/03/24
Remaining performance period (yrs)
nil
nil
nil
Weighted average fair value
$1.77
$1.94
$1.94
In December 2023, 112,500 Oct 2020 Performance rights were exercised.
In February 2024, 100,000 Jun 2021 (Issue 2) Performance rights were exercised.
In May 2024, 100,000 Jun 2021 (Issue 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 no Performance rights remaining from Financial year 2021.
Financial year 2022
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 vested on 30 June 2023. While the performance period has passed,
the remaining rights had not vested as at 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 vested on 4 October 2022 and the remaining rights vested 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 vested 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 vested 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).
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
86
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Item
Issue 1
Issue 2
Issue 3
Issue 4
Issue 5
Grant date
4 Oct 2021
24 Nov 2021
10 Dec 2021
10 Dec 2021
10 Dec 2021
Value at grant date
$2.18
$2.95
$3.10
$3.10
$3.10
Exercise price
nil
nil
nil
nil
nil
Dividend yield
0%
0%
0%
0%
0%
Risk free rate
0.05% - 0.27%
0.54%
1.32%
1.32%
1.32%
Volatility
50%
50%
72% - 106%
72% - 106%
106%
Performance period (yrs)
2.00 - 3.00
1.00 - 2.00
1.00 - 3.00
2.00 - 3.00
3.00
Test date
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)
nil
nil
0.00 - 0.45
0.00 - 0.45
1.45
Weighted average fair value
$1.83
$2.11
$3.10
$3.10
$3.10
In December 2023, 139,909 Oct 2021 (Issue 1) Performance rights were exercised.
In December 2023, 120,000 Nov 2021 Performance rights were issued to KMP, Mr Mark Clark.
In December 2023 83,000 Dec 2021 (Issue 3) Performance rights were exercised.
In December 2023, 399,000 Dec 2021 (Issue 4) Performance rights were exercised.
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.
In June 2024, 123,000 Dec 21 (Issue 3 & Issue 4) Performance rights were forfeited due to the resignation of employees
in accordance with the performance Rights Plan.
There are 624,909 Performance rights remaining from Financial year 2022.
Financial year 2023
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:
87
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Item
Issue 1
Issue 2
Issue 3
Grant date
26 Oct 2021
29 Nov 2022
19 Jun 2023
Value at grant date
$3.36
$4.21
$4.23
Exercise price
Nil
Nil
nil
Dividend yield
0%
0%
0%
Risk free rate
0.54%
3.18%
4.14%
Volatility
50%
50%
50%
Performance period (yrs)
1.00
2.00 - 3.00
2.00 - 3.00
Test date
31/10/22
30/06/24 & 30/06/25
30/06/24 & 30/06/25
Remaining performance period (yrs)
-
0.00 - 1.00
0.03 - 1.03
Weighted average fair value
$3.38
$3.25
$2.72
In December 2022, 542,490 Oct 2021 Performance rights were exercised by employees.
There are 377,814 Performance rights remaining from Financial year 2023.
Financial year 2024
In November 2023, 492,668 Performance rights were issued to employees under the Group’s Performance Rights Plan.
100% of the rights vested on 31 October 2023.
In December 2023, 382,415 Performance rights were issued to employees under the Group’s Performance Rights Plan.
50% of the rights will vest on 10 December 2025 and the remaining rights will vest on 10 December 2026.
In November 2023, 154,670 Performance rights were issued to KMP, Mr Clark under the Group’s Performance Rights
Plan. 50% of the rights will vest on 30 June 2025 and the remaining rights will vest on 30 June 2026.
In December 2023, 120,000 Performance rights were issued to employees under the Group’s Performance Rights Plan.
42% of the rights will vest on 18 September 2024, 33% of the rights will vest on 18 September 2025, and the remaining
rights will vest on 18 September 2026.
In December 2023, 32,000 Performance rights were issued to employees under the Group’s Performance Rights Plan.
50% of the rights will vest on 10 July 2025 and the remaining rights will vest on 10 July 2026.
The performance condition for the FY2024 Performance rights was continued employment with the Company for the
performance period.
The fair value of the Performance rights granted during Financial year 2024 was $5,115,576.
The fair value at the grant date was estimated using a Monte Carlo simulation (Issue 3), and a Black Scholes option
pricing model for the remaining Issues.
The table below details the terms and conditions of the grants and the assumptions used in estimating the fair value:
Item
Issue 1
Issue 2
Issue 3
Issue 4
Issue 5
Grant date
27 Oct 2022
7 Dec 2023
29 Nov 2023
7 Dec 2023
7 Dec 2023
Value at grant date
$4.652
$4.34
$4.276
$4.34
$4.34
Exercise price
Nil
Nil
Nil
Nil
Nil
Dividend yield
0%
0%
0%
0%
0%
Risk free rate
3.61%
3.75%
3.98%
3.75%
3.75%
Volatility
59%
50%
47%
44%
68%
Performance period (yrs)
1.00
2.01 - 3.01
2.00 - 3.00
0.78 - 2.78
1.59 - 2.59
Test date
31/10/2023
10/12/25 &
10/12/26
30/6/25 &
30/6/26
18/9/24,
18/9/25 &
18/9/26
10/7/25 &
10/7/26
Remaining performance period (yrs)
-
1.45 - 2.45
1.00 - 2.00
0.22 - 2.22
1.03 - 2.03
Weighted average fair value
$4.652
$4.34
$3.26
$4.34
$4.34
In December 2023, 492,668 Oct 2022 Performance rights were exercised by employees.
There are 689,085 Performance rights remaining from Financial year 2024.
88
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Key estimates and judgements – Share based payments
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.
30. RELATED PARTY DISCLOSURES
Key Management Personnel Remuneration
KMP remuneration has been included in the Remuneration Report section of the Directors Report for current KMP only.
Total remuneration paid to current and former KMP of the Group
2024
$
2023
$
Short term benefits
2,858,521
2,282,875
Other service fees
220,000
616,000
Non-cash benefits
16,104
12,885
Post-employment benefits
144,461
127,025
Annual leave
141,607
175,275
Share based payments
834,676
1,050,100
Termination payments
-
-
4,215,369
4,264,160
Ultimate Parent
Capricorn Metals Ltd is the ultimate parent entity of the Group.
Controlled Entities
The consolidated financial statements include the financial statements of the Parent and the subsidiaries set out in the
following table:
Ownership (%)
Subsidiaries
Country
Principal activity
2024
2023
Mining Services SARL
Madagascar
Exploration Services
100%
100%
St Denis Holdings SARL
Madagascar
Commercial Property
100%
100%
MGY Mauritius Ltd
Mauritius
Investment Holding
100%
100%
Malagasy Graphite Holdings Ltd
Australia
Investment Holding
100%
100%
Greenmount Resources Pty Ltd
Australia
Production
100%
100%
Crimson Metals Pty Ltd
Australia
Exploration
100%
100%
Metrovex Pty Ltd
Australia
Exploration
100%
100%
The subsidiaries noted above are all controlled entities and are dependent on the parent entity for financial support.
Transactions with Related Parties
As at 30 June 2024, the net loans from the Parent to its subsidiaries totals $130,897,000 (2023: $122,692,000). This is
made up of loans to subsidiaries of $138,627,000 (2023: $130,422,000) with a provision for impairment of $7,730,000
(2023: $7,730,000).
89
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
Subsidiaries
Loan
Provision for
impairment
Carrying value
$’000
$’000
$’000
Mining Services SARL
452
(452)
-
MGY Mauritius Ltd
2,991
(463)
2,528
Malagasy Graphite Holdings Ltd
6,815
(6,815)
-
Greenmount Resources Pty Ltd
59,726
-
59,726
Crimson Metals Pty Ltd
64,832
-
64,832
Metrovex Pty Ltd
22
-
22
134,838
(7,730)
127,108
There are no other transactions between related parties within the Group.
31. PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the parent and has been prepared in
accordance with Australian Accounting Standards.
Statement of financial position
2024
$’000
2023
$’000
Assets
Current assets
7,394
4,706
Non-current assets
162,663
177,222
Total Assets
170,057
181,928
Liabilities
Current liabilities
2,347
1,003
Non-current liabilities
(5,150)
865
Total Liabilities
(2,803)
1,868
Shareholders’ equity
Issued capital
203,297
203,422
Reserves
4,520
4,188
Accumulated losses
(34,958)
(27,550)
Total Shareholders’ Equity
172,859
180,060
Statement of comprehensive income
2024
$’000
2023
$’000
Net loss attributable to members of the parent entity
(12,042)
(10,514)
Other comprehensive income for the period
-
-
Total comprehensive loss for the year attributable to members of the parent entity
(12,042)
(10,514)
The Parent entity has not entered into any contractual commitments for the acquisition of property plant and equipment
at the date of this report.
32. DEED OF CROSS GUARANTEE
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.
90
CAPRICORN METALS
Notes to the consolidated financial statements (Continued)
For the year ended 30 June 2024
•
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’.
33. COMMITTMENTS
The Group has physical gold delivery commitments and exploration expenditure commitments which are disclosed in
Notes 2 and 14 respectively.
34. CONTINGENT LIABILITIES
As at 30 June 2024 Capricorn Metals Ltd has bank guarantees totalling $311,000 (2023: $386,000), refer to Note 8.
As at 30 June 2024 the Group has a $2 million (2023: $4 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.
35. AUDITORS REMUNERATION
Amount payable to KPMG Australia
2024
$
2023
$
Audit and review of financial statements – Group
160,000
130,000
Audit and review of financial statements – controlled entities
-
-
Audit and review of financial statements – controlled entities
160,000
130,000
Amounts payable to other audit firms for the audit and review of the financial reports of subsidiary companies was nil
(2023: $2,253).
36. SUBSEQUENT EVENTS
There were no material events arising subsequent to 30 June 2024, 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.
37. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
A number of new standards, amendments of standards and interpretations are effective for annual periods beginning
from 1 July 2024 and earlier application is permitted, however, the Group has not early adopted these standards in
preparing these consolidated financial statements.
The Group has reviewed these standards and interpretations and has determined that none of these new or amended
standards and interpretations will significantly affect the Group’s accounting policies, financial position or performance.
91
CAPRICORN METALS
Consolidated entity disclosure statement
For the year ended 30 June 2024
Type of Entity
Country of
Incorporation
Australian or
Foreign Tax
Resident
Jurisdiction for
Foreign Tax
Resident
Equity
Interest
(%)
Capricorn Metals Ltd
Body corporate
Australia
Australia
N/A
100
Greenmount Resources Pty Ltd
Body corporate
Australia
Australia
N/A
100
Crimson Metals Pty Ltd
Body corporate
Australia
Australia
N/A
100
Metrovex Pty Ltd
Body corporate
Australia
Australia
N/A
100
Malagasy Graphite Holdings Ltd
Body corporate
Australia
Australia
N/A
100
Mining Services SARL
Body corporate
Madagascar
Australia
N/A
100
St Denis Holdings SARL
Body corporate
Madagascar
Australia
N/A
100
MGY Mauritius Ltd
Body corporate
Mauritius
Australia
N/A
100
Key assumptions and judgements – Consolidated entity disclosure statement
Determination of Tax Residency
Section 295 (3A) of the Corporations Acts 2001 requires that the tax residency of each entity which is included in the
Consolidated Entity Disclosure Statement (CEDS) be disclosed. In context of an entity which was an Australian resident,
“Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax
residency involves judgement as the determination of tax residency is highly fact dependent and there are currently
several different interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
•
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the
Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
92
CAPRICORN METALS
Directors’ declaration
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 2024 and of the performance for the year
ended on that date of the Company and Group.
(b) The consolidated entity disclosure statement as at 30 June 2024 set out on page 92 to the consolidated
financial report is true and correct,
(c)
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
(d) 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 Chief Financial Officer for the financial year ended 30 June 2024.
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
4 September 2024
93
CAPRICORN METALS
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 gives a true and fair
view, including of the Group’s financial
position as at 30 June 2024 and of its financial
performance for the year then ended, in
accordance with the Corporations Act 2001, in
compliance with Australian Accounting
Standards and the Corporations Regulations
2001.
The Financial Report comprises:
• Consolidated statement of financial position as at
30 June 2024;
• 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;
• Consolidated entity disclosure statement and
accompanying basis of preparation as at
30 June 2024;
• Notes, including material accounting policies; and
• 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.
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.
This is a reproduction of our original version of the audit report on the financial report signed by the directors
on 4 September 2024. Page references should be read as follows to reflect the correct references now that
the financial report has been presented in the context of the annual report in its entirety:
+
page references 13 to 23 with respect to our audit of the remuneration report set out in the directors’
remuneration report, should be updated to read 40 to 50.
94
CAPRICORN METALS
Valuation and classification of ore stockpiles (A$85,364,000)
Refer to Note 9 Inventories in the Financial Report
The key audit matter
How the matter was addressed in our audit
The valuation and classification of ore stockpiles
is a key audit matter because:
•
Significant judgement is required to be
exercised by the Group in assessing the
value and classification of ore stockpiles
which will be used to produce gold bullion in
the future;
Significant judgement is required by us in
evaluating and challenging the key
assumptions within the Group’s assessment
of net realisable value and estimated timing
of processing into gold bullion; and
Ore stockpiles represent 14% of total assets
of which the majority is non-current
increasing the judgement associated with
forecast assumptions.
The Group’s assessment is based on a model
which estimates future revenue expected to be
derived from gold contained in the ore stockpiles,
less future processing costs, to convert
stockpiles into gold bullion. We placed particular
focus on those assumptions listed below which
impact the valuation and classification of ore
stockpiles:
Future processing costs of ore stockpiles
including potential cost increases;
The estimated quantity of gold contained
within the ore stockpiles;
Future gold prices expected to prevail when
the gold from existing ore stockpiles is
processed and sold; and
Estimated timing of conversion of ore
stockpiles into gold bullion, which drives the
classification of ore stockpiles as current or
non-current assets.
Assumptions are forward looking or not based on
observable data and are therefore inherently
judgmental to audit. We involved our senior audit
team members in assessing this key audit
matter.
Our procedures included:
Testing the Group’s inventory reconciliations
which utilise underlying data such as production
and processing costs, geological survey reports,
mill production reports and metallurgical survey
reports;
Assessing the methodology applied by the
Group in determining the value of ore stockpiles
including the accuracy of underlying
calculations, against the requirements of the
accounting standards;
Assessing the key assumptions in the Group’s
model used to determine the value of ore
stockpiles by:
o
Comparing future processing costs to
previous actual costs, and for consistency
with the Group’s latest life of mine plan;
o
Comparing the estimated quantity of gold
contained within stockpiles to the Group’s
internal geological survey results and
historical trends. We assessed the scope,
competence and objectivity of the Group’s
internal expert involved in preparing the
geological survey results; and
o
Comparing gold prices to published
external analysts’ data for prices expected
to prevail in the future.
Critically evaluating the Group’s classification of
ore stockpiles as current or non-current by
assessing the estimated timing of processing
the stockpiles against the Group’s latest life of
mine plan and the historical operating capacity
of the Group’s processing plants; and
Assessing the disclosures in the Group’s
financial report using our understanding
obtained from our testing against the
requirements of accounting standards.
95
CAPRICORN METALS
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, ESG Report, Reserves & Resources report
and ASX additional information are expected to be made available to us after the date of the Auditor’s
Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of
the Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In
doing so, we consider whether the Other Information is materially inconsistent with the Financial Report
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other Information,
and based on the work we have performed on the Other Information that we obtained prior to the date
of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• Preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true
and fair view of the financial position and performance of the Group, and in compliance with
Australian Accounting Standards and the Corporations Regulations 2001;
• Implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and that 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.
96
CAPRICORN METALS
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report of
Capricorn Metals Ltd for the year ended
30 June 2024, complies with Section 300A of
the Corporations Act 2001.
Directors’ responsibilities
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 13 to 23 of the Directors’ report for the year
ended 30 June 2024.
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
4 September 2024
97
CAPRICORN METALS
ASX additional information
As at 10 September 2024 the following information applied:
1.
Equity securities
The Company has two classes of equity securities, being ordinary fully paid shares (“Shares”) and performance rights
(“Rights”). The Shares are quoted on the Australian Securities Exchange under the code CMM. The Rights are not quoted.
2.
Distribution of ordinary fully paid shares
Size of holding
Number of
Shareholders
Number of
Shares
Percentage
1 - 1,000
1,615
706,711
0.19%
1,001 - 5,000
1,174
3,087,125
0.82%
5,001 - 10,000
350
2,734,146
0.72%
10,001 - 100,000
515
16,711,229
4.43%
100,001 and over
134
354,288,821
93.84%
Total
3,788
377,528,032
100.00%
There were 158 Shareholders holding less than a marketable parcel of shares valued at $500.
3.
Top 20 shareholders
Name
Number
Percentage
HSBC Custody Nominees (Australia) Limited
116,923,493
30.97%
J P Morgan Nominees Australia Pty Limited
63,121,705
16.72%
Citicorp Nominees Pty Limited
48,237,031
12.78%
Samoz Pty Ltd
16,966,154
4.49%
BNP Paribas Noms Pty Ltd
9,620,452
2.55%
Rollason Pty Ltd
8,148,299
2.16%
National Nominees Limited
8,132,861
2.15%
HSBC Custody Nominees (Australia) Limited
7,036,171
1.86%
Macquarie Bank Limited
5,000,000
1.32%
Mutual Investments Pty Ltd
4,462,378
1.18%
Mr Glyn Evans & Mrs Thi Thu Van Evans
4,250,000
1.13%
Nedlands Nominees Pty Ltd
3,347,385
0.89%
BNP Paribas Nominees Pty Ltd
2,845,453
0.75%
Liberty Management Pty Ltd
2,500,000
0.66%
Cenquest Pty Ltd
2,349,000
0.62%
Mr Kim Andrew Massey
2,153,847
0.57%
Liberty Management Pty Ltd
2,000,000
0.53%
Piama Pty Ltd
1,694,965
0.45%
Anthony Graham & Kylie Maree Hinkley
1,638,462
0.43%
Topaz Holdings Pty Ltd
1,600,000
0.42%
Top 20 shareholders
312,027,656
82.65%
Total issued shares
377,528,032
100.00%
98
CAPRICORN METALS
ASX Additional Information (Continued)
4.
Substantial shareholders
The names of the substantial shareholders listed in the Company’s share register as at 10 September 2024 were:
Shareholder
Number of
Shares
Percentage
%
Van Eck Associates Corporation
34,826,401
9.22
Paradice Investment Management Pty Ltd
25,163,231
6.69
T. Rowe Price Associates, Inc.
19,210,093
5.08
Total
98,174,549
26.02
5.
On market buy-back
There is currently no on-market buy-back of the Company’s Shares.
6.
Performance rights
Rights by year of grant
Number of
Holders
Number of Rights
Unvested FY2022 Performance rights (Test date: 30 Jun 2024)
2
139,909
Unvested FY2022 Performance rights (Test date: 10 Dec 2024)
24
485,000
Unvested FY2023 Performance rights (Test date: 30 Jun 2024)
3
188,907
Unvested FY2023 Performance rights (Test date: 30 Jun 2025)
3
188,907
Unvested FY2024 Performance rights (Test date: 18 Sep 2024)
1
50,000
Unvested FY2024 Performance rights (Test date: 30 Jun 2025)
1
77,335
Unvested FY2024 Performance rights (Test date: 10 Jul 2025)
1
16,000
Unvested FY2024 Performance rights (Test date: 18 Sep 2025)
1
40,000
Unvested FY2024 Performance rights (Test date: 10 Dec 2025)
12
180,760
Unvested FY2024 Performance rights (Test date: 30 Jun 2026)
1
77,335
Unvested FY2024 Performance rights (Test date: 10 Jul 2026)
1
16,000
Unvested FY2024 Performance rights (Test date: 18 Sep 2026)
1
30,000
Unvested FY2024 Performance rights (Test date: 10 Dec 2026)
12
201,655
Total
63
1,691,808
All Rights are issued under the Company’s employee incentive scheme.
7.
Voting rights
Shares
On a show of hands, every member present, in person or by proxy, shall have one vote. Upon a poll, each Share shall have
one vote.
Rights
There are no voting rights attached to the Rights.
8.
Corporate governance
The Company’s corporate governance statement can be found at the following URL:
http://capmetals.com.au/corporate/corporate-governance/
99
CAPRICORN METALS
ASX Additional Information (Continued)
5. Mineral Resources & Ore Reserves
Group Mineral Resources
The JORC compliant Group Mineral Resources (inclusive of Ore Reserves) at 30 June 2024 are estimated at 223.7 million
tonnes at 0.8g/t Au for 5.56 million ounces of gold compared with the estimate at 31 March 2023 of 202.2 million tonnes
at 0.8g/t Au for 4.98 million ounces of gold.
The re-estimation of Group Mineral Resources resulted in a 11% increase in tonnes and 12% increase in ounces.
The increase in the Group Mineral Resources is primarily due to the results of the drilling programmes undertaken during
the year, an updated Resource at the Mt Gibson Gold Project ('MGGP'), based on $2,300/ounce and the inclusion of the
Heap Leach Pad. The Karlawinda Gold Project (‘KGP’) Resource has been updated based on a gold price of A$2,400/ounce
and to reflect mining depletion.
Mineral Resources are reported inclusive of Ore Reserves and include all exploration and resource definition drilling
information, where practicable, up to 30 June 2024 and have been depleted for mining to 30 June 2024.
Mineral Resources are constrained by optimised open pit shells developed with operating costs and long-term gold price
assumptions of A$2,400 per ounce for KGP and A$2,300 per ounce for MGGP.
Group Ore Reserves
The JORC compliant Group Ore Reserves at 30 June 2024 are estimated at 119.3 million tonnes at 0.9g/t Au for 3.26
million ounces of gold compared with the estimate at 31 March 2023 of 97.9 million tonnes at 0.9g/t Au for 2.70 million
ounces of gold.
The re-estimation of the Group Ore Reserves resulted in an 22% increase in tonnes and 21% increase in ounces.
The change in Group Ore Reserves is primarily due to the increased Mineral Resources and updated prefeasibility study
inputs at MGGP, resource conversion drilling and an updated gold price of A$2,200 at KGP.
0.15
4.98
0.66
0.06
5.56
0.0
1.0
2.0
3.0
4.0
5.0
6.0
31/Mar/23
Depletion
Model Update
New Deposits
30/Jun/24
Million Ounces
Group Mineral Resources
31 March 2023
30 June 2024
100
CAPRICORN METALS
ASX Additional Information (Continued)
Karlawinda Gold Project (‘KGP’)
Mineral Resources
The KGP JORC compliant Mineral Resource as at 30 June 2024 is 98.6 million tonnes at 0.7g/t Au for 2.25 million ounces,
compared to 97.4 million tonnes at 0.7g/t Au for 2.23 million ounces at 31 March 2023.
The change in the KGP Mineral Resource from March 2023 to June 2024 reflects a 1% increase in Mineral Resource tonnes
and a 1% increase in Mineral Resource ounces.
Ore Reserves
The KGP JORC compliant Ore Reserve at 30 June 2024 is 57.7 million tonnes at 0.8g/t Au for 1.43 million ounces, compared
to 49.2 million tonnes at 0.8g/t Au for 1.25 million ounces at 31 March 2023.
The change in the KGP Ore Reserve from March 2023 to June 2024 reflects a 17% increase in Ore Reserve tonnes and
14% increase in Ore Reserve ounces.
Mt Gibson Gold Project (‘MGGP’)
Mineral Resources
The MGGP JORC compliant Mineral Resource at 30 June 2024 is 125.1 million tonnes at 0.8g/t Au for 3.31 million ounces,
compared to 104.9 million tonnes at 0.8g/t Au for 2.75 million ounces at 31 March 2023.
The change in the MGGP Mineral Resource from March 2023 to June 2024 reflects a 19% increase in Mineral Resource
tonnes and a 20% increase in Mineral Resource ounces.
Ore Reserves
The MGGP JORC compliant Ore Reserve at 30 June 2024 is 61.6 million tonnes at 0.9g/t Au for 1.83 million ounces,
compared to 48.7 million tonnes at 0.9g/t Au for 1.45 million ounces at March 2023.
The change in the MGGP Ore Reserve from March 2023 to June 2024 reflects a 26% increase in Ore Resource tonnes and
a 26% increase in Ore Resource ounces.
Governance arrangements and internal controls
The Company has put in place governance arrangements and internal controls with respect to its estimates of Mineral
Resources and Ore Reserves and the estimation process, including:
•
oversight and approval of each annual statement by responsible senior officers;
•
establishment of internal procedures and controls to meet JORC Code 2012 compliance in all external reporting;
•
annual reconciliation with internal planning to validate reserve estimates for operating mines; and
•
board approval of new and materially changed estimates.
-
0.15
-
-
-
2.70
0.64
0.08
3.26
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
31/Mar/23
Depletion
Model Update
New Deposits
30/Jun/24
Million Ounces
Group Ore Reserves
31 March 2023
30 June 2024
101
CAPRICORN METALS
ASX Additional Information (Continued)
Group Mineral Resources as at 30 June 2024
Gold
Measured
Indicated
Inferred
Total Resources
Deposit
Type
Cut-
off
(g/t)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Tonnes
(Mt)
Grad
e
(g/t)
Metal
(koz)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Bibra
Open pit
-
-
-
45.1
0.8
1,174
4.7
0.7
113
49.8
0.8
1,287
Southern
corridor
Open pit
-
-
-
30.1
0.7
640
7.5
0.6
152
37.7
0.7
792
Easky
Open pit
-
-
-
3.2
0.5
51
1.3
0.5
22
4.5
0.5
73
KGP East
Open pit
-
-
-
1.7
0.7
39
0.0
1.3
0.5
1.7
0.7
39
Stockpiles
Stockpiles
-
-
-
4.9
0.4
61
-
-
-
4.9
0.4
61
KGP Total
0.3<
-
-
-
85.0
0.7
1,965
13.6
0.7
287
98.6
0.7
2,252
Mt Gibson
Laterite
1.0
0.5
17
0.8
0.5
14
1.8
0.5
31
Mt Gibson
Oxide
-
-
-
9.1
0.8
242
0.3
0.7
7
9.4
0.8
249
Mt Gibson
Transitional
-
-
-
10.8
0.8
281
0.7
0.7
15
11.4
0.8
296
Mt Gibson
Fresh
-
-
-
73.9
0.9
2,115
24.2
0.7
553
98.2
0.8
2,668
Mt Gibson
Heap Leach
-
-
-
4.0
0.4
57
0.3
0.4
4
4.3
0.4
61
MGGP Total 4
0.4<
-
-
-
98.8
0.9
2,712
26.3
0.7
592
125.1
0.8
3,305
GROUP TOTAL
183.8
0.8
4,677
39.9
0.7
880
223.7
0.8
5,557
Notes: 1.
Mineral Resources are estimated using a gold price of A$2,400/ounce at KGP and A$2,300/ounce at MGGP.
2.
Mineral Resources are estimated using a cut-off grade between 0.3g/t and 0.4g/t Au.
3.
The above data has been rounded to the nearest 100,000 tonnes, 0.1 g/t gold grade and 1,000 ounces. Errors of summation may occur due
to rounding.
4.
As reported 19th April 2024
Group Ore Reserves as at 30 June 2024
Gold
Proved
Probable
Total Reserves
Deposit
Type
Cut-off
(g/t)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Tonnes
(Mt)
Grade
(g/t)
Metal
(koz)
Bibra
Open pit
0.3<
-
-
-
32.7
0.9
927
32.7
0.9
927
Southern corridor
Open pit
0.3<
-
-
-
19.3
0.7
419
19.3
0.7
419
Berwick
Open Pit
0.3<
-
-
-
0.8
0.8
20
0.8
0.8
20
Stockpiles
Stockpiles
0.3<
-
-
-
4.9
0.4
61
4.9
0.4
61
KGP Total
-
-
-
57.7
0.8
1,428
57.7
0.8
1,428
MGGP5
Open pit
0.3<
-
-
-
61.6
0.9
1,834
61.6
0.9
1,834
GROUP TOTAL
-
-
-
119.3
0.9
3,262
119.3
0.9
3,262
Notes: 1. Ore Reserves are a subset of Mineral Resources.
2.
Ore Reserves are estimated using a gold price of A$2,200/ounce at KGP and A$1,900/ounce at MGGP.
3.
Ore Reserves are estimated using a cut-off grade between 0.3g/t and 0.4g/t Au.
4.
The above data has been rounded to the nearest 100,000 tonnes, 0.1 g/t gold grade and 1,000 ounces. Errors of summation may occur due
to rounding.
5.
As reported 19th April 2024.
102
CAPRICORN METALS
ASX Additional Information (Continued)
Competent Persons statement
The information in this report that relates to Mineral Resources is based on information compiled by Mr. Jarrad Price who
is General Manager of Geology and an employee of the Company. Mr. Jarrad Price is a current Fellow of the Australian
Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of
deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Price
consents to the inclusion in the report of the matters based on the information in the form and context in which it
appears.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Xuefeng (Steven)
Wang. Mr Wang is a full-time employee of Capricorn Metals Ltd and is a Fellow of the Australian Institute of Mining and
Metallurgy. Mr Wang has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Wang
consents to the inclusion in this report of the matters based on the information in the form and context in which it
appears.
Capricorn Metals confirms that it is not aware of any new information or data that materially affects the information
included in the previous ASX announcements on Mineral Resources and Metallurgy (1 August 2024) and, in the case of
estimates of Mineral Resources, Ore Reserves, Plant operating costs and Metallurgy, all material assumptions and
technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are
presented have not materially changed from previous market announcements. The announcements are available to view
on the ASX website and on the Company’s website at www.capmetals.com.au.
Forward looking statements
This report may contain certain “forward-looking statements” which may not have been based solely on historical facts,
but rather may be based on the Company’s current expectations about future events and results. Such statements
include, but are not limited to, statements with regard to capacity, future production and grades, estimated costs,
revenues and reserves, the construction costs of new projects and projected capital expenditures, the outlook for
minerals and metals prices and the outlook for economic conditions and may be (but are not necessarily) identified by
the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. Where the Company expresses or
implies an expectation of belief as to future events or results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis. The detailed reasons for that conclusion are outlined throughout this report and all
material assumptions are disclosed.
However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could
cause actual results to differ materially from future results expressed, projected or implied by such forward-looking
statements.
Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production
costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as governmental regulation
and judicial outcomes.
For a more detailed discussion of such risks and other factors, see the Risks section of this report, as well as the Company’s
other announcements. Readers should not place undue reliance on forward looking information. The Company does not
undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or
circumstances after the date of this report, or to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
103
CAPRICORN METALS
Tenement Schedule
Lease
Project
Company
Location
Status
Percentag
e Held
M52/1070
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/1711
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/2247
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/2398
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/2409
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3323
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3363
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3364
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3450
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3474
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3531
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3533
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3541
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3543
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3571
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3656
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3671
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3677
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3729
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3797
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
E52/3808
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/174
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/177
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/178
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/179
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/181
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/183
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/189
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/192
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/197
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/223
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/224
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
L52/248
Karlawinda
Greenmount Resources Pty Ltd
Western Australia
Granted
100%
M59/328
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
M59/402
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
M59/403
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
M59/404
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
M59/772
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2439
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2450
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2594
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2606
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2655
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2751
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2752
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2754
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2755
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
E59/2848
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2286
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
104
CAPRICORN METALS
ASX Additional Information (Continued)
P59/2287
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2290
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2291
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2306
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2309
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
P59/2310
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
L59/140
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
L59/198
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
L59/45
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
L59/46
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
L59/53
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
G59/48
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
G59/72
Mt Gibson
Crimson Metals Pty Ltd
Western Australia
Granted
100%
105
CAPRICORN METALS
Level 3, 40 Kings Park Road,
West Perth WA 6005
+61 8 9212 4600
enquiries@capmet.com.au