Castillo Copper Limited
30 June 2021 Annual Report
ABN 52 137 606 476
Corporate Directory
Directors
Robert Scott (Non-Executive Chairman)
Simon Paull (Managing Director)
Gerrard (Ged) Hall (Non-Executive Director)
Geoff Reed (Non-Executive Director) (appointed 16 August 2021)
Company Secretary
Dale Hanna
Registered Office and Principal Place of Business
45 Ventnor Avenue
West Perth, WA 6005 Australia
Telephone: + 618 6558 0886
Facsimile: + 618 6316 3337
Share Registry
Automic Registry Services Pty Ltd
Level 2
267 St Georges Terrace
Perth, WA 6000 Australia
Telephone: 1300 288 664
Auditors
HLB Mann Judd (WA Partnership)
Level 4
130 Stirling Street
Perth, WA 6000 Australia
Securities Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: CCZ
London Stock Exchange
LSE Code: CCZ
Contents
Chairman’s Address
Managing Director’s Address
Directors’ Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
ASX Additional Information
Tenement Table
Page No
1
2
4
24
25
26
27
28
51
52
53
57
59
Chairman’s Address
Dear Shareholders,
Overall, the 2021 financial year was a productive one for Castillo Copper despite the challenges
presented by the COVID 19 pandemic. We embarked on our strategic journey to evolve into a copper
producer, focusing mostly on exploring key targets in Queensland and Zambia.
In addition, Castillo Copper successfully listed on the London Stock Exchange, increased the footprint
around the world-class Broken Hill silver-zinc-lead deposit and raised well over A$10 million (£5
million) from placements and option conversions.
Moving forward, the Group is now well funded to ramp up exploration activities significantly in the Mt
Isa and Zambia copper-belts. Our geology teams in Queensland and Zambia have identified some
compelling targets at the Big One Deposit, Arya Prospect and Luanshya Project that we intend to drill
in the 2022 financial year.
Reflecting on the 2021 financial year, there are several milestones and key decisions worthy of greater
elaboration:
The inaugural drilling campaign at the Big One Deposit intersected high-grade shallow copper
mineralisation. Notably, there were two outstanding assay results, which highlighted the
potential of the underlying system, comprising two 40-44m wide intercepts from surface with up
to 16.65% Cu.
Further comprehensive soil sampling campaigns across the Luanshya and Mkushi Projects in
Zambia delineated significant anomalous areas for copper mineralisation warranting further
exploration.
To ensure the New South Wales assets, BHA Project and Cangai Copper Mine, are fully
optimised, the Group decided it prudent to find suitable strategic partners to fund forward
exploration.
The support from new and current Australian and UK shareholders for our fund-raising
initiatives exceeded expectations. As a result, the Group can now completely focus on
exploring the flagship projects in the Mt Isa and Zambia copper-belts.
With the ramp up in exploration activities, the Group decided to bring an experienced geologist
onto the Board, which resulted in the appointment of Geoff Reed post year end.
With the global copper market still in an upcycle, the Board remains cautiously optimistic that Castillo
Copper will make significant transformative progress in the 2022 financial year.
On behalf of the Board, I’d like to extend my sincere appreciation to all key stakeholders for their hard
work and support over the 2021 financial year.
Rob Scott
Chairman
Perth, Western Australia
28 September 2021
1
Managing Director’s Address
Dear Shareholders,
To ensure Castillo Copper delivers on its strategy and creates value for shareholders, we are
accelerating our exploration efforts in the Mt Isa and Zambia copper-belts. Our goal is to have an
initial resource estimate for the Big One Deposit, with drilling underway at the Arya Prospect and
Luanshya Project in Zambia during the first half of the 2022 financial year. We are now in a prime
position, with excellent projects and a highly qualified Board, to potentially transform into a copper
producer.
Building on what the Chairman outlined in his address, there has been a lot of activity across the
Group in the 2021 financial year – a brief overview follows:
Mt Isa Copper-belt, North-West Queensland
To better reflect our flagship asset, given it has over 20 prospective targets, we renamed it the NWQ
(North-West Queensland) Copper Project. The Mt Isa copper-belt has seen a significant resurgence
of interest since the base metal upcycle commenced in 2020. Notably, 29Metals (ASX: 29M) high-
profile IPO has put the Mt Isa region back on the investors radar. The operating Capricorn Mine,
which is owned by 29M, is 10km south of the NWQ Copper Project’s footprint.
Big One Deposit
The second drilling campaign, which commenced in June 2021, has been effective in building our
understanding of the underlying mineralised system. Notably, a significant number of targets have
been drill-tested, known mineralisation materially extended and encouragingly, a highlight of the early
assay results included:
9m @ 1.42% Cu from 88m including 4m @ 3.06% Cu from 92m & 1m @ 9.19% Cu from
92m (BO_317RC)
The geology team will progress building up the model, with the ultimate strategic goal, if justified, to
apply for a Mining Lease for the Big One Deposit.
Arya Prospect
All logistics are in place for work to commence at the Arya Prospect during the first half of the 2022
financial year. There are three primary anomalies to be drill-tested including EG01, EG02 and EG10.
However, most of the focus is on EG01 which is interpreted to be 130m thick, 1,500m long and 450m
wide. Pleasingly, a recent review of historic data by Castillo Copper’s geophysicist suggests EG01 is
100-200m deep, which is significantly shallower than initially interpreted.
Based on elevated copper readings at surface, coincident magnetic and electromagnetic readings,
EG01 is likely one of the most sizeable targets slated for test drilling in the Mt Isa copper-belt in the
2022 financial year.
Zambia Projects
Comprehensive soil sampling programs across the key Luanshya and Mkushi Projects, which are
within Zambia’s copper-belt, previously delineated significant surface anomalies
for copper
mineralisation. Currently, an Induced Polarisation survey is being conducted across both projects to
identify underlying geophysical anomalies. Pleasingly, preliminary reports for the Luanshya Project,
which has a known 6km strike event, indicates there are multiple targets that can potentially be test-
drilled.
2
Once the final geophysical report is received, which should include a reconciliation with the surface
anomalies, the geology team can plan for the inaugural drilling campaign to start at the Luanshya
Project.
BHA Project, New South Wales
The BHA Project comprises a sizeable footprint which surrounds the world class zinc-silver-lead
deposit in Broken Hill. Pleasingly, a mandate has been awarded to CPS Capital Group to restructure
then IPO the BHA Project, within a new holding vehicle on the ASX. The target is to raise a minimum
of $4.5 million, up to a maximum of $7 million, to fund forward development work. Note, there are
numerous primary iron-oxide-copper-gold and zinc-silver-lead targets across the project, which
enhances its exploration potential.
This deal is a win-win for all stakeholders, as it enables a first-class project to be fully developed
whilst Castillo Copper will potentially benefit through retaining a significant minority stake.
Cangai Copper Mine, New South Wales
Due to the scarcity of available projects within Australia, Castillo Copper has been approached by
several groups potentially interested in developing the Cangai Copper Mine. While no firm offers have
been received, the Cangai Copper Mine is relatively advanced and has a JORC compliant inferred
resource at 3.2Mt @ 3.35% Cu. Castillo Copper remains committed to finding a suitable strategic
partner to fully develop this asset.
Prospects
With ample funding and a strengthened Board due to the appointment of Geoff Reed, the Group is
well positioned to make significant progress developing the Queensland and Zambia assets in the
2022 financial year. Moreover, successfully spinning off the BHA Project potentially opens up another
avenue to create value for shareholders.
On behalf of my colleagues, I’d like to thank all stakeholders for their support as we continue to build
Castillo Copper into a significant copper group.
Simon Paull
Managing Director
Perth, Western Australia
28 September 2021
3
Castillo Copper Limited – Directors’ Report
The Directors of Castillo Copper Limited and its subsidiaries (“Castillo”, “CCZ” or the “Group”) submit the financial
report of the Group for the year ended 30 June 2021. In order to comply with the provisions of the Corporations Act
2001, the Directors report as follows:
DIRECTORS
The names, qualifications and experience of the Company’s Directors in office during the year and until the date of
this report are as follows. Directors were in office for the entire financial year unless otherwise stated.
Mr Robert Scott
Non-Executive Chairman
Mr Scott recently retired from the Sandfire Resources’ Board after 10 years, having overseen the development and
commercialisation of the world-class, high-grade Degrussa Copper-Gold Mine in Western Australia as well as its
ongoing exploration commitment.
Current Board experience in the mining and energy sectors includes RTG Mining Inc. which has advanced copper &
gold exploration interests in the Philippines and Bougainville. Previously, he served on the Boards of CGA Mining Ltd
(a major gold producer in the Philippines) and NASDAQ-listed, Lonestar Resources US Inc. which is a Texas-based
producer of shale oil.
Mr Scott is a Chartered Accountant with over 35 years’ experience as a corporate advisor at major accounting firms.
He retired as an international partner from Arthur Andersen to pursue Non-Executive Director roles. Mr Scott is a
fellow of Chartered Accountants Australia & New Zealand, member of the Taxation Institute of Australia and of the
Australian Institute of Company Directors.
Mr Simon Paull
Managing Director
Mr Paull initially trained as an accountant in Perth prior to moving into the mining services industry as a financial
controller. In the mid-1990s, Mr Paull moved to Ghana in West Africa with ASX-listed Ausdrill to oversee the finance
and administration functions.
In-mid-2000, Mr Paull moved to Tanzania with Sandvik, where he was subsequently promoted to MD East Africa,
with responsibilities for nine countries including Kenya, Uganda, Ethiopia, Eritrea and Sudan that comprised 350
employees. This role entailed significant travel across the region, coupled with successfully navigating local customs
and cultures to achieve positive outcomes.
During his tenure, Sandvik’s market share across the East African Market Area expanded 300%. In addition, Mr Paull
was on Sandvik’s regional African executive management team which oversaw a near doubling in revenues to
US$1.2bn over 2006-11.
Upon returning to Perth in 2014, Mr Paull worked for Danish emergency services group, Falck, as CEO. A notable
achievement during his four-year stint was to almost triple work on hand through expanding customer relationships
and staying in front of changing market dynamics.
Mr Paull has a Masters in Commerce & MBA from the University of New England. In addition, Mr Paull holds
memberships with of the Institute of Public Accountants & Australian Institute of Directors.
Mr Gerrard (Ged) Hall
Non-Executive Director
For the past several years, Mr Hall has been aligned with SI Capital, working as a director in the corporate finance
and broking division. Mr Hall’s core responsibilities encompass managing corporate relationships, broadening the
HNW client base and business development.
4
Castillo Copper Limited – Directors’ Report
In a varied career, spanning circa 25 years, Mr Hall has gained considerable frontline and managerial experience
across a broad spectrum of financial products, with notable institutions. From 1994-2004, he worked with JP Morgan
then UBS, focused mostly on trading equity & treasury derivatives as a primary trader and on behalf of clients.
Subsequently, Mr Hall spent six years in Bahrain, mostly with Saudi National Commercial Bank, as a Business Head
of Asset Management & Treasury Products. Notably, he established the Structured Investment Product division and
grew it into sub-business unit that generated US$20m in annual revenues within four years.
Upon returning to the UK in 2010, Mr Hall joined Barclays Wealth as a Head of Strategic Alliances for the MENA
region. In this role, he negotiated distribution agreements with Middle East banks and expanded the footprint across
the Gulf States and into Egypt primarily.
Following a two-year hiatus to complete post-graduate studies, Mr Hall established his own strategic management
consultancy in mid-2013 and has undertaken engagements for blue-chip groups including BFC Bank, Northern Trust
Natixis and HSBC.
Mr Hall has a Bachelor of Arts, with honours, in Economics & Finance from the University of Greenwich as well as
MBA and Masters of Science in Financial Management from Edinburgh Business School.
Mr Geoff Reed (appointed 16 August 2021)
Non-Executive Director
Mr Reed, who is based in New South Wales, is a geologist with over 25 years' experience, focused on GIS and 3D
technical work. Most of Mr Reed's experience relates to underground / open-cut metalliferous mining and various
exploration projects.
During his career, Mr Reed has undertaken geological and resource management roles across several regions in
Australia including Mt Isa / Century in Queensland; and Broken Hill / Cobar in New South Wales.
Incrementally, Mr Reed has worked on numerous international projects in Europe (Finland, Ireland, Portugal, Spain,
Sweden), Africa (Angola, South Africa), Asia (China, Indonesia, Mongolia) and Canada.
Prior to establishing his own consultancy in 2008, Mr Reed held positions as a mine geologist with MlM/Xstrata in Mt
Isa and Pasminco / Perilya in Broken Hill.
Whilst Mr Reed is well versed in base-and-precious metals, he has worked on numerous copper-gold projects and
has spent a considerable amount of time in the Mt Isa region. Consequently, this knowledge will be invaluable to the
Company as it progresses development work at the Big One Deposit and Arya Prospect in the Mt Isa copper-belt.
Mr Reed can provide Mineral Resource Estimations for metalliferous projects as a Competent Person in accordance
with the JORC Code or a Qualified Person for technical reports that meet N ll-43~11 01 standards. Further, Mr Reed
has a Bachelor of Applied Science (Geology) from the University of Technology (Sydney), with memberships at the
Australian Institute of Geoscientists (MAIG), Australian Institute of Company Directors (MAICD) and Australasian
Institute of Mining and Metallurgy (MAusIMM(CP)).
5
Castillo Copper Limited – Directors’ Report
DIRECTORS’ MEETINGS
During the financial year, in addition to regular Board discussions, the number of meetings of Directors held and the
number of meetings attended by each director were as follows:
Director
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall
Number of Meetings Eligible
Number of Meetings
to Attend
Attended
2
2
2
2
2
2
DIRECTORSHIPS IN OTHER LISTED ENTITIES
Directorships of other listed entities held by current Directors of the Company during the last 3 years immediately
before the end of the year are as follows:
Director
Robert Scott
Company
RTG Mining Inc.
Twenty Seven Co. Limited
Sandfire Resources Limited
Resimac Group Limited
Simon Paull
Gerrard Hall
Geoff Reed
Nil
Nil
Nil
Period of Directorship
From
To
28 March 2013
12 April 2019
30 July 2010
9 November 2000
Current
Current
31 December 2020
26 November 2018
COMPANY SECRETARY
Mr. Dale Hanna served as company secretary for the 2021 financial year. Mr. Hanna has 20 years’ experience
working in CFO, Company Secretary, corporate advisory and governance roles. Mr Hanna commenced his career
with Ernst & Young, Perth. Subsequently, he has worked with many listed-ASX groups primarily involved in the
mining and natural resources sectors, ranging from exploration, development and production phases.
Mr Hanna is a Chartered Accountant and Secretary, with current memberships at Chartered Accountants Australia &
New Zealand and Governance Institute of Australia respectively. In addition, Mr Hanna has a Bachelor of Commerce
degree from Curtin University.
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for Directors and executives of Castillo Copper Limited
in accordance with the requirements of the Corporation Act 2001 and its Regulations. For the purpose of this report,
Key Management Personnel (KMP) of the Group are defined as those persons having authority and responsibility for
planning, directing and controlling the major activities of the Group, directly or indirectly, including any officer
(whether executive or otherwise) of the Group.
The remuneration report is set out under the following main headings:
• Principles used to determine the nature and amount of remuneration
• Details of remuneration
• Service agreements
• Share-based compensation
• Additional disclosures relating to key management personnel
6
Castillo Copper Limited – Directors’ Report
Principles used to determine the nature and amount of remuneration
The Board is responsible for determining and reviewing compensation arrangements for the Directors. The Board
assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by
reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder
benefit from the retention of a high quality board and executive team. The Group does not link the nature and
amount of the emoluments of such officers to the Group’s financial or operational performance. The expected
outcome of this remuneration structure is to retain and motivate Directors.
As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration
Committee Charter. Due to the current size of the Group and number of Directors, the Board has elected not to
create a separate Remuneration Committee but has instead decided to undertake the function of the Committee as a
full Board under the guidance of the formal charter.
The rewards for Directors have no set or pre-determined performance conditions or key performance indicators as
part of their remuneration due to the current nature of the business operations. The Board determines appropriate
levels of performance rewards as and when they consider rewards are warranted. The Group has a policy which
disallows executives and Directors entering into contracts to hedge their exposure to options or shares granted as part
of their remuneration package.
The table below shows the performance of the Group as measured by loss per share.
As at 30 June
2021
2020
2019
2018
2017
Net profit/(loss) before tax ($)
(1,624,984)
(1,842,170)
(1,924,982)
(2,402,843)
(529,642)
Net profit/(loss) after tax ($)
(1,624,984)
(1,842,170)
(1,924,982)
(2,402,843)
(529,642)
Share price at end of year
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Return on capital
0.038
(0.16)
(0.16)
(0.08)
0.026
(0.25)
(0.25)
(0.08)
0.016
(0.31)
(0.31)
0.033
(0.45)
(0.45)
0.019
(0.24)
(0.24)
(0.108)
(0.143)
(0.052)
Details of Remuneration
Details of Key Management Personnel
Mr. Robert Scott (Non-Executive Chairman)
Mr. Simon Paull (Managing Director)
Mr. Gerrard Hall (Non-Executive Director)
Details of the nature and amount of each element of the emolument of each Key Management Personnel of the
Group for the financial year are as follows:
Short term
Options Post-employment
2021
Directors’
Consulting
Share-
Superannuation
Total Remuneration
Director
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall5
Fees
Fees
based
$
48,000
48,000
39,829
Payments
$
52,710
$
-
120,000
105,420
-
52,710
135,829
120,000
210,840
7
linked to
performance
%
-
-
-
-
$
-
-
-
-
$
100,710
273,420
95,539
466,669
Castillo Copper Limited – Directors’ Report
Short term
Options Post-employment
2020
Directors’
Consulting
Share-
Superannuation
Total Remuneration
Director
Mr. Robert Scott
Mr. Simon Paull1
Mr. Gerrard Hall5
Mr. Alan Armstrong2
Mr. Peter Smith3
Mr. Matthew Bull4
Fees
Fees
based
$
48,000
42,732
36,062
12,000
24,000
14,000
Payments
$
-
25,056
13,920
-
13,920
-
$
-
78,100
-
21,850
31,725
-
176,794
131,675
52,896
linked to
performance
%
-
17.2
27.9
-
20.0
-
14.6
$
-
-
-
-
-
-
-
$
48,000
145,888
49,982
33,850
69,645
14,000
361,365
1Mr. Simon Paull was appointed on 23 August 2019
2 Mr. Alan Armstrong resigned as a director on 23 August 2019 and was appointed Chief Financial Officer (until 31 December 2019).
3 Mr. Peter Smith resigned on 31 December 2019
4 Mr. Matthew Bull was appointed on 31 December 2019 and resigned on 30 April 2020
5 Mr Gerrard Hall is employed by SI Capital & his entitlement to director fees are included in SI Capital’s mandate.
There were no other key management personnel of the Group during the financial years ended 30 June 2021 and 30
June 2020.
Service Agreements
Managing Directors’ remuneration
Mr Paull is entitled to an Executive Consultant fee of $120,000 p.a. All fees are on an “as required” basis and as
such, have no fixed termination clauses. Full details were announced to the ASX on 20 December 2019.
Non-Executive Directors’ remuneration
The aggregate remuneration for non-executive Directors has been set at an amount not to exceed $500,000 per
annum. This amount may only be increased with the approval of Shareholders at a general meeting.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the
year ended 30 June 2021.
Options
On 2 October 2020, Mr Scott and Mr Hall were issued 3 million options and Mr Paull was issued 6 million options,
exercisable at $0.05 each before 2 December 2022 in recognition of their services to the Company and to further
incentivise their performance. These options were issued for nil cash consideration, were valued at $210,840 in total
and were recognised as share-based payments for the year ended 30 June 2021. The key terms of the options are
shown below.
8
Castillo Copper Limited – Directors’ Report
Number of
options
Vesting date and
exercisable date
Expiry date
Exercise price
Fair value per
option at grant
date
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall
3,000,000
2/10/2020 30/09/2023
6,000,000
2/10/2020 30/09/2023
3,000,000
2/10/2020 30/09/2023
$0.05
$0.05
$0.05
$0.0176
$0.0176
$0.0176
No options have been granted as remuneration since the end of the financial year.
Additional disclosures relating to key management personnel
Key Management Personnel Options
The number of options in the company held during the financial year ended 30 June 2021 by key management
personnel of Castillo Copper Limited, including their personally related parties, is set out below.
Balance at
the start of
the year
Balance at
appointment
Granted
during the
year as
compensation
On exercise
of share
options
Other
changes
during the
year
Balance at
resignation
Balance at
the end of
the year
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall
5,000,000
6,000,000
3,000,000
-
-
-
3,000,000
6,000,000
3,000,000
-
-
-
-
-
2,941,176
-
8,000,000
- 12,000,000
-
8,941,176
Key Management Personnel Shareholdings
The number of shares in the company held during the financial year ended 30 June 2021 held by key management
personnel of Castillo Copper Limited, including their personally related parties, is set out below.
Balance at
the start of
the year
Balance at
appointment
Granted
during the
year as
compensation
On exercise
of share
options
Other
changes
during the
year
Balance at
resignation
Balance at
the end of
the year
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall
1,405,361
1,000,000
5,100,000
-
-
-
-
-
-
-
-
-
-
-
3,041,837
-
-
1,405,361
1,000,000
8,141,837
Other transactions with key management personnel
Yingyang Pty Ltd, a company of which Mr Paull is a director, charged the Group director’s fees of $48,000 (2020:
$41,032) and executive fees of $120,000 (2020: $70,000). There was nil outstanding at 30 June 2021 (2020: $30,800).
Coverley Management Services Pty Ltd, a company of which Mr Scott is a director, charged the Group director’s fees of
$48,000 (2020: $48,000). There was nil outstanding at 30 June 2021 (2020: $11,000).
Strategic Business Analysis Ltd, a company of which Mr Hall is a director, charged the Group director’s fees of $39,829
(2020: $36,062). There was nil outstanding at 30 June 2021 (2020: nil)
Transactions with key management personnel were made at arm’s length at normal market prices and normal
commercial terms. All remuneration amounts noted above are included in the remuneration table on page 7.
END OF REMUNERATION REPORT
9
Castillo Copper Limited – Directors’ Report
INTERESTS IN THE SECURITIES OF THE GROUP
As at the date of this report, the interests of the Directors in the securities of Castillo Copper Limited were:
Director
Ordinary Shares
Unlisted Options
Performance Shares
Mr. Robert Scott
Mr. Simon Paull
Mr. Gerrard Hall
Mr. Geoff Reed
2,595,838
2,190,477
8,141,837
250,000
8,595,239
12,595,239
8,941,176
-
-
-
-
-
RESULTS OF OPERATIONS
The net loss of the Group for the year after income tax was $1,624,984 (2020: $1,842,170) and the net assets of the
Group at 30 June 2021 were $19,025,358 (2020: $8,494,325).
DIVIDENDS
No dividend was paid or declared by the Group during the year and up to the date of this report.
CORPORATE STRUCTURE
Castillo Copper Limited is a company limited by shares that is incorporated and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the principal activity of the Group was mineral exploration and examination of new resource
opportunities. The Group currently holds copper projects in Queensland and New South Wales in Australia as well as
copper projects in Zambia.
EMPLOYEES
Other than the Directors, the Group had no employees at 30 June 2021 (2020: Nil).
REVIEW OF OPERATIONS
During the financial period, the principal activity of the Group was mineral exploration primarily focused on the NWQ
Copper Project (previously known as Mt Oxide Project) in Queensland and the Zambian Copper Projects.
NWQ COPPER PROJECTS
Big One Deposit
On 14 July 2020, the Group released detailed plans for the Big One Deposit drilling campaign. This comprised a
4,385m RC drilling campaign, over 35 drill-holes, focused on a strike zone (~580m by ~120m) to test for
mineralisation from ~26m up to ~190m below surface. Further, an incremental 160m diamond drilling campaign,
targeting two drill-holes, is set to test primarily for shallow mineralisation from ~26m up to ~52m below surface
(Figure 1).
10
Castillo Copper Limited – Directors’ Report
FIGURE 1: RC & DD DRILLING TARGETS AT BIG ONE DEPOSIT
Source: Xplore Resources (for the first releases of the historical RC drill hole information and other geological data refer to CCZ
ASX Releases - 14 January, 3 June and 14 July 2020)
On 10 August 2020, as part of pre-drilling formalities, the geology team visited the Big One Deposit and noted:
A prominent shear zone and surface outcrop with visible copper mineralisation; and
The preliminary site visit confirmed the location of the three pits with visible copper mineralisation.
On 19 August 2020, the geology team pegged 35 drill-sites at Big One Deposit in readiness for the upcoming drilling
campaign. In addition, massive hematite / cuprite chalcocite vein mineralisation was visually identified which provides
credence the Big One Deposit could potentially be part of a larger IOCG mineralised system.
Concurrently, the team collected 24 rock chip samples along strike – for follow up analysis – from stockpiles and
historic pit workings which visually confirmed the presence of supergene oxide (malachite) and massive sulphide
(chalcocite) mineralisation at surface.
On 31 August 2020, the Group secured an agreement in-principle to appoint Depco Drilling as the lead contractor for
the upcoming RC and diamond drilling campaigns at the Big One Deposit. Note, Depco Drilling is a privately-owned
Queensland based group, which has been operating since the early 1960s and has significant experience across
multiple projects in the Mt Isa Basin area.
Further, in a major validation for the NWQ Copper Project, Depco Drilling have agreed, subject to legal review and
necessary approvals, to accept a material proportion of their fees in Castillo Copper shares, with a six-month
voluntary escrow period.
On 14 September 2020, the geology team’s interpretations on 24 rock-chip samples collected from historic workings
at the Big One Deposit, which were reconciled against desktop reports, highlighted the following:
Most of the rock-chip samples are from highly mineralised ore, since they comprise high-grade copper oxide
and supergene mineralisation;
Specifically, observed copper mineralisation occurs as massive veinlets / crackfill veins, while at surface as
malachite, azurite, cuprite and chalcocite; and
11
Castillo Copper Limited – Directors’ Report
The geology team believe the previous operator excavated high-grade mineralised ore but never dispatched
it for processing, possibly due to financial constraints at the time.
On 24 September 2020, assay results from 24 rock chip samples – taken from excavated ore and unexplored areas
across the Big One Deposit – confirmed the existence of high-grade copper mineralisation. Notably, the best results
comprised 33.2% Cu (11515), 32.1% Cu (11518) and 26.6% Cu (11508) respectively with the average 6.7% Cu
across the 24 samples.
On 27 October 2020, the inaugural RC drilling campaign at Big One Deposit commenced (Figure 2).
FIGURE 2: DRILLING STARTING AT BIG ONE DEPOSIT
Source: Location: 7,880,306E, 335,422N Source: CCZ geology team (ASX Release – 27 October 2020)
On 16 November 2020, after inspecting samples from the first seven drill-holes completed at Big One Deposit, the
geology team confirmed observing visible copper oxide (malachite) and sulphide (chalcocite) mineralisation in wide
intercepts up to 13m at shallow depths.
On 30 November 2020, assays verified shallow copper mineralisation up to 4.14% Cu at Big One Deposit. The
results, which were based on visually logged mineralised intersects, highlighted shallow copper mineralisation
apparent within four drill-holes, with the best intercepts:
RC_213: 7m @ 1.37% Cu from 57m incl: 3m @ 2.18% Cu from 58m
RC_211: 1m @ 4.14% Cu from 65m
RC_206: 7m @ 0.54% Cu from 55m incl: 2m @ 1.35% Cu from 60m
RC_207: 4m @ 0.43% Cu from 85m incl: 2m @ 1.03% Cu from 85m
On 14 December 2020, a further six drill-holes completed at Big One Deposit had all intersected visible, shallow
copper oxides & sulphides up to 12m indicating potential extensions to known mineralisation at depth. These
included:
BO_301RC: 12m cumulative – 3m from 28-31m & 9m from 32-41m – Black copper oxides and malachite
(oxide)
12
Castillo Copper Limited – Directors’ Report
BO_303RC: 10m cumulative - 3m from 25-28m & 7m from 28-35m – Black copper oxides, malachite
(oxide), and chalcocite (sulphide)
BO_306RC: 7m cumulative – 4m from 93-97m and 3m from 99-102m – Malachite, pyrite, and chalcocite
BO_305RC: 5m cumulative – 4m from 30-34m & 1m from 39-40m – Malachite and chalcocite
BO_302RC: 3m from 36-39m – Black copper oxides
BO_304RC: 1m from 81-82m – Azurite and malachite
On 11 January 2021, assays, which comprised final laboratory reporting for the 200 (complete) and 300 (partial)
series, including two 40-44m wide intercepts from surface, with up to 16.65% Cu:
303RC: 40m @ 1.64% from surface including 11m @ 4.40% from 24m, 5m @ 7.34% from 28m & 1m @
16.65% from 29m (Figure 3)
301RC: 44m @ 1.19% Cu from surface including 14m @ 3.55% from 27m, 3m @ 10.88% from 37m & 1m
@ 12.6% from 37m (Figure 4)
FIGURE 3: NW-SE CROSS-SECTION LOOKING EAST
AT 303RC
FIGURE 4: NW-SE CROSS-SECTION LOOKING EAST
AT 301RC
Source: CCZ geology team
These are excellent assays results, as they make the geological case more compelling via confirming there is
potential for a high-grade, shallow copper system to be apparent at the Big One Deposit. Notably, the assays extend
known mineralisation and build on high-grade historical results which produced stellar intercepts from supergene
copper mineralisation up to 28.4% Cu.
On 19 January 2021, the Group appointed two key service providers to facilitate accelerating developing the new
copper discovery at the Big One Deposit, detailed as follows:
ROM Resources was appointed to utilise legacy and current data to progress the modelling of an inaugural
JORC compliant inferred resource; and,
GeoDiscovery Group, has been mandated to undertake an extensive geophysical survey with two core
goals:
1) Potentially extend known mineralisation through the identification of massive sulphide bedrock conductors
along the 1,200m strike extent; and
2) Deliver fresh geophysical insights into several known yet under-explored nearby anomalies, particularly
previously mapped gossanous outcrops north-east of the recent drilling campaign.
13
Castillo Copper Limited – Directors’ Report
PHOTO GALLERY: SURFACE COPPER MINERALISATION AT BIG ONE DEPOSIT
Location: 335504mE; 7880388mN Source: CCZ geology team
On 10 February 2021, the geology consultant, ROM Resources, uncovered comprehensive historical assays from a
drilling campaign undertaken by previously listed Forsayth Minerals Exploration NL (FME). Combining these findings
from FME, with the final assay results from CCZ’s 2020 campaign, clearly extended the known mineralisation at the
Big One Deposit.
The best intercepts include the standout B0017 with up to 9.4% Cu:
BO017: 34m @ 1.51% Cu from surface including 21m @ 2.25% Cu from surface, 12m @ 3.44% Cu from
3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% from 9m.
BO015: 18m @ 0.86% Cu fm 11m including 6m @ 1.85% Cu from 20m, 3m @ 2.98% Cu from 20m and 1m
@ 8% from 20m
Note: Due to the lack of QA/QC and a positional accuracy of ±10-20m, FME’s drill-holes are regarded as historical
“Exploration Results” and whilst providing support to the existing information cannot form the basis alone of any
resource estimate.
On 7 April 2021, the geology team resumed exploratory work at the Big One Deposit, with the conclusion of the rainy
season. Notably, pre-drilling work would comprise a geophysical survey campaign designed to extend known
mineralisation.
On 20 May 2021, findings from the inaugural Induced Polarisation (IP) survey were released. Pleasingly, preliminary
interpretations from CCZ’s geophysicist consultant delivered outstanding results:
There is compelling evidence significant incremental mineralisation is located along fault structures rather
than constrained within the trachyte dyke; and
Consequently, this increases the potential structural targets across the Big One Deposit.
Findings from line 3 – which is 700m long (Figure 5) – highlight a significant untested bedrock conductor north of the
line of lode that is materially larger than the high-grade anomaly drilled in 2020 – where the two 40-44m intercepts
are located. Further, three more untested prospective anomalies along line 3 were discovered south of the line of
lode.
14
Castillo Copper Limited – Directors’ Report
FIGURE 5: LINE 3 – NEWLY IDENTIFIED BEDROCK CONDUCTORS
Source: CCZ geology team
On 16 June 2021, the Group announced a resumption of drilling at the Big One Deposit (Figure 6). The program,
comprising 26 drill-holes for 2,828m, is focused on intersecting new targets off the 1,200m strike event to extend
known copper mineralisation.
FIGURE 6: DRILLING UNDERWAY AT MT OXIDE PROJECT
Location: 7,880,306E, 335,422N Source: CCZ geology team
On 29 June 2021, the Group announced that mineralisation had been intercepted – up to 17.5m thick – at the Big
One Deposit. Factoring in results from the recent IP survey, the first three drill-holes, BO_315RC-17RC, proximal to
BO_2020_201RC-03RC, all intercepted mineralisation (Figure 7) based on the field geologist’s estimates.
FIGURE 7: BEST INTERCEPTED MINERALISATION
Borehole
BO_315RC
BO_316RC
BO_316RC
BO_317RC
From (m)
61.0
113.0
129.0
90.5
Source: CCZ geology team
To (m)
69.0
120.0
146.5
103.0
Apparent Thickness (m)
8.0
7.0
17.5
12.5
Compared to drill-holes 201RC-03RC from the 2020 campaign, 315RC-317RC were drilled deeper, intersecting
mineralisation within and external to the trachyte dyke. This is significant, as it supports interpretations from the IP
15
Castillo Copper Limited – Directors’ Report
survey that copper mineralisation is controlled by major structural trends rather than constrained purely within the
trachyte dyke. More significantly, fresh interpretations from the preliminary observations verify that known
mineralisation has clearly been extended.
Arya Prospect
On 1 July 2020, the geology team finalised the RC drilling campaign for the Arya project (Figure 8), which comprises
~3,432m over 14 drill-holes, within an area ~1,500m by ~1,000m, with targets near surface and interpreted deeper
geophysical anomalies.
Three deep vertical drill-holes, spaced ~210m apart, will target the interpreted potential massive sulphide bedrock
conductor (EG01), which is ~130m thick, with dimensions ~1,500m by ~450m, and ~426m deep.
The remaining eleven drill-holes will focus on several near surface targets including bedrock conductors, EG02 and
EG10, which have the potential to be supergene mineralisation. Both are ~25m below surface and ~25m thick, with
dimensions ~160m by 50m and ~270m by 280m respectively.
FIGURE 8: DRILL TARGETS AT ARYA PROSPECT – ELECTROMAGNETIC ANOMALIES
Source: CCZ geology team (refer CCZ ASX Release – 4 September 2019)
16
Castillo Copper Limited – Directors’ Report
On 13 April 2021, the geology team reviewed key historical reports – including several commissioned by BHP & Mt
Isa Mines (MIM) in the 1990s. In a 1997 annual tenement report, BHP identified 11 GEOTEM anomalies worthy of
attention (within the NWQ Copper Project), however, ground geophysics and rock chip sampling was only completed
on four (leaving seven viable targets yet to be investigated):
At the time, BHP rated EG01 as the priority drill-test target.
Secondary targets, comprising EG02 & EG10, are interpreted to be shallow and may contain supergene
copper mineralisation.
Using aggregated historical rock-chip assay data – up to 1.84% Cu (MIM) – the geology team created a maiden
copper heat map (Figure 9) which seamlessly reconciles with geophysical findings to boost confidence in drill-test
targets at the Arya Prospect.
FIGURE 9: COPPER HEAT MAP ACROSS ARYA & SANSA PROSPECTS
Source: CCZ geology team
In a fresh development, another deep bedrock conductor was identified at the newly named Sansa Prospect (Figure
9), which is immediately west of the Arya Prospect. Encouragingly, there are elevated surface copper readings at the
Sansa Prospect – above the bedrock conductor – though further interpretation work is required to formulate
dimensions and assess the geological potential.
Tenement granted
The Queensland government’s Department of Resources granted the final key tenement (EPM 27440) that expands
the NWQ Copper Project’s overall footprint in Mt Isa’s copper-belt by circa 23% to 980km2. Within the granted
ground are five well-profiled targets (Crescent, Pancake, Flapjack, The Wall & Johnnies) that are prospective for
IOCG, Mt Isa Style & shear-hosted copper mineralisation.
Overall, factoring incremental forensic work undertaken by the geology team, there are over 20 prospects across the
NWQ Copper Project which delivers a considerable pipeline of forward exploratory work.
17
Castillo Copper Limited – Directors’ Report
ZAMBIA PILLAR
On 3 September 2020, the geology team completed a comprehensive infill surface sampling campaign at the
prospective Luanshya Project (Figure 10) in Zambia’s copper-belt which delivered encouraging results including:
Ratification that a high-priority target for copper mineralisation, along a circa 6km strike event, is apparent;
and
Building on the first campaign, undertaken in April 2020, the geology team properly demarcated the
anomalous area which highlighted portable XRF results up to 2,600ppm Cu.
FIGURE 10: SOIL SAMPLES XRF RESULTS COLOURED BY GRADE RANGES
Note: Shows spatial distribution of previous and infill soil sample results coloured using their copper grades
Source: CCZ geology team
On 2 November 2020, the geology team completed a systematic infill soil sampling campaign at the prospective
Mkushi Project (Figure 11). The campaign, which comprised 702 infill samples, was undertaken to derive a better
understanding of copper anomalism apparent within the tenure boundaries.
The samples were analysed using a portable XRF analyser which is consistent with previous field work. Overall, the
results confirmed eight target areas with significant copper anomalism and extended strike lengths, ranging 1.5km -
4.2km, compared with the January 2020 campaign.
18
Castillo Copper Limited – Directors’ Report
FIGURE 11: SOIL SAMPLES XRF RESULTS COLOURED BY GRADE RANGES
Note: Shows spatial distribution of previous and infill soil sample results coloured using their copper grades
Source: CCZ Zambian geology team (ASX Release – 2 November 2020)
NEW SOUTH WALES PROJECTS
Broken Hill Alliance (BHA) Project
On 30 September 2020, in a transformational move, which delivered a large footprint proximal to Broken Hill’s world-
class silver-zinc-lead deposit, the Group agreed terms to acquire Wyloo Metals tenements. The acquisition delivers
the Group a commanding ground position in Broken Hill, while significant technological advances now infer this
footprint is prospective for Broken Hill Type zinc-silver-lead and Iron-Oxide-Copper-Gold mineralisation.
On 19 January 2021, following a strategic review, the Group decided it was an opportune time to capitalise on the
prevailing base and precious metal upcycle to fast-track creating additional shareholder value. Noting a significant
resurgence of interest in groups with footprints around Broken Hill, the Group decided to consider divestment
opportunities including a possible spin-off of its sizeable Broken Hill asset into a new vehicle which could be listed in
either London or Australia.
Cangai Copper Mine
No exploration work was undertaken on the high-grade Cangai Copper Mine, which has JORC compliant inferred
resource at 3.2Mt @ 3.35% Cu. However, the Group continues to market the project to potential strategic partners
that a prepared to fund development work on an earn in basis.
LONDON STOCK EXCHANGE
In a landmark development for the Group, its shares were admitted to the London Stock Exchange (LSE), with
dealings commencing on 4 August 2020. This follows on from the publication of the Group’s prospectus a week
earlier, which related to the admitting the ordinary shares to the Standard Segment of the Official List of the Financial
Conduct Authority and LSE.
19
Castillo Copper Limited – Directors’ Report
CAPITAL RAISING
On 4 June 2021, the Group secured ample funding, A$11.7m (£6.4m) before costs, to rapidly progress developing
core projects in Australia and Zambia. Pleasingly, the placement was well supported by institutional and sophisticated
investors in Australia and the UK.
The Group has issued a total of 278,395,961 New Shares at $0.042 (£0.023) per share. 140,592,523 New Shares
were issued using the existing 7.1 capacity, 97,502,707 New Shares were issued using the Group’s existing 7.1A
capacity and 40,300,731 New Shares were issued upon obtaining shareholder approval in a General Meeting held on
30 July 2021.
In addition, the Group will issue a total of 157,041,087 Listed Options, all of which were subject to shareholder
approval at the above-mentioned general meeting.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the year, other than as outlined
elsewhere in this report.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
The following significant events occurred after 30 June 2021:
NWQ Copper Project
Drilling continued at the Big One Deposit, with initial assays for drill-holes BO_315-317RC returning up to 9.19% Cu
and clearly extending known mineralisation. The best intercepts are summarised below:
9m @ 1.42% Cu from 88m including 4m @ 3.06% Cu from 92m & 1m @ 9.19% Cu from 92m (BO_317RC)
5m @ 1.06% Cu from 141m (BO_316RC)
3m @ 1.22% Cu from 65m (BO_315RC)
Zambia
The Group confirmed a comprehensive IP survey will commence across the key Luanshya and Mkushi Projects.
Given the scale of the campaign, it will take 6-8 weeks to complete and fully analyse the results. However, reconciling
these findings with known anomalous areas at surface should identify priority targets to test-drill.
BHA Project
The Group appointed CPS Capital Group, to restructure and then list, on a best endeavours basis, via an IPO on the
ASX, its wholly-owned BHA Project which comprises a large footprint proximal to Broken Hill’s world-class zinc-lead-
silver deposit. A new entity, Newco, will be formed to house the BHA Project, with the Group slated to retain a
significant interest post-IPO.
Newco will be led by Managing Director, Dr Dennis Jensen, a former Federal Member of Parliament and CSIRO
scientist who has significant experience consulting in the mining industry.
Subject to final approvals to progress the IPO, Newco is targeting to raise a minimum of $4.5m up to a maximum of
$7.0m (and will include a preferential subscription allocation to CCZ shareholders) to fund a comprehensive
exploration campaign to develop the BHA Project.
Board Changes
On 16 August 2021, Mr Geoff Reed was appointed as a Non-Executive Director.
New Shares/Options Issued
In August 2021, the Company issued 40,300,731 new ordinary shares and 159,439,781 listed options to complete
the recent capital raising on the Australian Stock Exchange and London Stock Exchange. Total proceeds raised were
$1,368,966 (AUD) and £177,245 (GBP) ($1,692,631 AUD total).
20
Castillo Copper Limited – Directors’ Report
Other than as set out in the Review of Operations, there were no other known material significant events from the
end of the financial year to the date of this report that have significantly affected, or may significantly affect the
operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Castillo Copper remains focused on progressing its three (3) pillared strategy which includes continued exploration
efforts at NWQ Copper Project in Queensland, Cangai Copper Mine in New South Wales and its four Zambian
properties.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The operations of the Group are presently subject to environmental regulation under the laws of the Commonwealth
of Australia and the States of Queensland and New South Wales and the Republic of Zambia. The Group is, to the
best of its knowledge, at all times in full environmental compliance with the conditions of its licenses.
SHARE OPTIONS
As at the date of this report, there were 358,362,757 unissued ordinary shares under options. The details of the
unlisted options at the date of this report are as follows:
Number
Exercise Price $
Expiry Date
15,000,000
5,000,000
17,000,000
57,716,574
52,491,667
9,000,000
102,454,545
1,582,353
79,117,618
19,000,000
0.05
0.05
0.10
0.05
0.05
0.05
0.05
1 February 2022
31 December 2023
31 December 2023
1 August 2022
2 December 2022
31 December 2022
30 June 2023
£0.017
£0.028
1 September 2023
1 September 2023
0.05
30 September 2023
In addition to the unlisted options, there are 220,939,781 listed options (ASX:CCZO, CCZA, CCZB). The details of
the listed options at the date of this report are as follows:
Number
Exercise Price $
61,500,000
127,418,042
32,021,739
$0.05
$0.08
£0.044
Expiry Date
27/03/2023
31/07/2024
01/08/2024
No option holder has any right under the options to participate in any other share issue of the Group or any other
entity.
PERFORMANCE SHARES
As part of the Zed Copper acquisition in the 2020 financial year, the Group issued 2 classes of performance shares to
the vendors on 20 February 2020:
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on delineation of a JORC resource of 200,000
tonnes of contained copper at a minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion of a preliminary feasibility study
demonstrating an internal rate of return greater than 25% within 5 years of execution of the Share Sale Agreement.
21
Castillo Copper Limited – Directors’ Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Group has made an agreement indemnifying all the Directors and Officers of the Group against all losses or
liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Group to the extent
permitted by the Corporation Act 2001. The indemnification specifically excludes wilful acts of negligence. The Group
paid insurance premiums in respect of Directors’ and Officers’ Liability Insurance contracts for current officers of the
Group. The liabilities insured are damages and legal costs that may be incurred in defending civil or criminal
proceedings that may be brought against the Officers in their capacity as Officers of entities in the Group. The total
amount of insurance premiums paid has not been disclosed due to confidentiality reasons.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of the court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any
part of those proceedings. The Group was not a party to any such proceedings during the year.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
the company or any related entity against a liability incurred by the auditor.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Castillo
Copper Limited support and have adhered to the principles of sound corporate governance. The Board recognises
the recommendations of the Australian Securities Exchange Corporate Governance Council and considers that
Castillo Copper is in compliance with those guidelines to the extent possible, which are of importance to the
commercial operation of a junior listed resources company. During the financial year, shareholders continued to
receive the benefit of an efficient and cost effective corporate governance policy for the Group. The Group’s
Corporate Governance Statement and disclosures can be found at https://test.castillocopper.com/corporate-
governance/.
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Castillo Copper
Limited with an Independence Declaration in relation to the audit of the financial report. A copy of that declaration is
included on page 52.
Non-audit services provided by the Group’s auditor amounted to $10,000 in relation to preparation of various reports
in relation to the London Stock Exchange Listing completed in August 2020.
Signed in accordance with a resolution of the Directors.
On behalf of the Directors.
Simon Paull
Managing Director
28 September 2021
22
Castillo Copper Limited – Directors’ Report
Competent Person’s Statement
The information on the pages that relate to Exploration Results for the Zambian Projects is based on information compiled or
reviewed by Mr Matt Bull, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bull is a
beneficiary of Southern River Investments, a trust which is a shareholder of Castillo Copper Limited. Mr Bull is a shareholder and
director of Trilogy Metals Pty Ltd, a company which provides ad hoc geological consultancy services to Castillo Copper Limited. Mr
Bull is a Consultant of Castillo Copper Limited. Mr Bull has sufficient experience that is relevant to the styles of mineralisation and
types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Bull has provided
his prior written consent to the inclusion in this report of the matters based on information in the form and context in which it
appears.
The information on the pages that relates to Exploration Results for the New South Wales and Queensland Projects are based on
information compiled or reviewed by Mr Mark Biggs. Mr Biggs is both a shareholder and director of ROM Resources, a company
which is a shareholder of Castillo Copper Limited. ROM Resources provides ad hoc geological consultancy services to Castillo
Copper Limited. Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) and has sufficient
experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to
qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code
Reporting. Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which
it appears.
23
Castillo Copper Limited
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
for the year ended 30 June 2021
Interest received
Other income
Listing and public company expenses
Accounting and audit expenses
Consulting and Directors’ fees
Impairment of deferred exploration and evaluation expenditure
Share-based payments
Finance expense
Other expenses
LOSS BEFORE INCOME TAX
Income tax expense
LOSS AFTER INCOME TAX
OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently to profit or loss
Foreign currency translation
TOTAL OTHER COMPREHENSIVE INCOME
Notes
8
22
4
5
2021
$
591
10,734
2020
$
708
81,005
11,325
81,713
(302,671)
(122,175)
(119,396)
(83,056)
(524,552)
(660,660)
-
(19,011)
(318,830)
(229,095)
-
(60,220)
(370,860)
(749,666)
(1,635,718)
(1,842,170)
-
-
(1,624,984)
(1,842,170)
(335)
(335)
(28,520)
(28,520)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(1,625,319)
(1,870,690)
Basic and diluted loss per share (cents per share)
14
(0.16)
(0.25)
The accompanying notes form part of these financial statements.
Castillo Copper Limited
24 2021 Annual Report to Shareholders
Castillo Copper Limited
Consolidated Statement of Financial Position
as at 30 June 2021
CURRENT ASSETS
Cash and cash equivalents
Other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other receivables
Deferred exploration and evaluation expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Rehabilitation provision
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
6
7
7
8
10
11
12
13
2021
$
10,854,829
221,444
11,076,273
349,100
8,171,821
8,520,921
2020
$
3,129,958
63,718
3,193,676
117,100
5,748,198
5,865,298
19,597,194
9,058,974
571,836
-
571,836
443,559
121,090
564,649
571,836
564,649
19,025,358
8,494,325
34,464,159
3,940,650
23,034,322
3,214,470
(19,379,451)
(17,754,467)
19,025,358
8,494,325
The accompanying notes form part of these financial statements.
Castillo Copper Limited
25 2021 Annual Report to Shareholders
Castillo Copper Limited
Consolidated Statement of Changes in Equity
for the year ended 30 June 2021
Issued
capital
$
23,034,322
-
-
-
2,454,515
9,965,973
276,139
(1,576,790)
Share
based
payment
reserve
$
3,366,315
-
-
Foreign
currency
translation
reserve
$
(151,845)
-
(335)
Accumulated
losses
$
(17,754,467)
(1,624,984)
-
Total
$
(8,494,325)
(1,624,984)
(335)
-
-
-
-
407,685
(335)
(1,624,984)
(1,625,319)
-
-
-
-
-
-
-
-
-
-
-
-
2,454,515
9,965,973
276,139
(1,169,105)
310,000
318,830
310,000
-
-
318,830
34,464,159
4,092,830
(152,180)
(19,379,451)
19,025,358
Balance at 1 July 2020
Loss for the year
Other Comprehensive Income
Total Comprehensive Loss
Transactions with owners in their
capacity as owners
Shares issued in London Stock
Exchange IPO
Shares issued to sophisticated
investors
Shares issued to advisors
Share issue costs
Shares issued from exercise of
options
Share based payments
Balance as at 30 June 2021
Balance at 1 July 2019
Loss for the year
Other comprehensive loss
17,870,979
-
-
3,023,570
-
-
(123,325)
-
(28,520)
(15,912,297)
(1,842,170)
-
4,858,927
(1,842,170)
(28,520)
Total comprehensive loss
-
-
(28,520)
(1,842,170)
(1,870,690)
Transactions with owners in their
capacity as owners
Shares issued to sophisticated
investors
Shares issued to advisors
Conversion of convertible notes
Shares issued to consultants
Shares issued per Zed Copper
Share issue costs
Share-based payments
Option payments
Equity component on convertible
3,920,013
75,000
880,610
128,970
562,500
(403,750)
-
-
-
-
-
-
-
-
-
169,125
113,400
60,220
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,920,013
75,000
880,610
128,970
562,500
(403,750)
169,125
113,400
60,220
Balance as at 30 June 2020
23,034,322
3,366,315
(151,845)
(17,754,467)
8,494,325
The accompanying notes form part of these financial statements.
Castillo Copper Limited
26 2021 Annual Report to Shareholders
Castillo Copper Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
Other receipts – insurance proceeds
Payments to suppliers and employees
Notes
2021
$
591
-
2020
$
708
81,005
(1,208,781)
(1,126,983)
NET CASH USED IN OPERATING ACTIVITIES
6
(1,208,190)
(1,045,270)
CASH FLOWS FROM INVESTING ACTIVITIES
Tenement expenditure guarantees
Refund from rent
Payment for acquisition of tenements
Payments for subsidiaries
Exploration and evaluation expenditure
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issues
Proceeds from exercise of options
Proceeds from convertible note issue
Prepayment for issue of shares
Share issue costs
NET CASH FROM FINANCING ACTIVITIES
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Foreign exchanges variances on cash
(232,000)
(18,500)
-
23,993
(217,285)
-
-
(25,000)
(2,236,420)
(376,194)
(2,685,705)
(395,701)
12,420,488
3,920,013
310,000
-
-
-
880,610
(10,000)
6
12
12
12
(1,132,902)
(403,750)
11,597,586
4,386,873
7,703,691
2,945,902
3,129,958
177,972
21,180
6,084
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR
6
10,854,829
3,129,958
The accompanying notes form part of these financial statements.
Castillo Copper Limited
27 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
Corporate Information
1.
The financial report of Castillo Copper Limited and its subsidiaries (“Castillo Copper” or “the Group”) for the year ended
30 June 2021 was authorised for issue in accordance with a resolution of the Directors on 28 September 2021.
Castillo Copper Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange and London Stock Exchange. The nature of the operations and the principal
activities of the Group are described in the Directors’ Report.
2.
Summary of Significant Accounting Policies
(a)
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001. The Group is a for profit entity for financial reporting
purposes under Australian Accounting Standards.
The financial report has been prepared on an accrual basis and is based on historical costs. Material accounting
policies adopted in preparation of this financial report are presented below and have been consistently applied unless
otherwise stated.
The presentation currency is Australian dollars.
(b)
Statement of Compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
(c)
Adoption of new and revised standards
Standards and Interpretations applicable 30 June 2021
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result
of this review, the Directors have determined that there is no material impact of the new and revised Standards and
Interpretations on the Group and therefore, no material change is necessary to Group accounting policies.
Standards and interpretations issued, but not yet effective
The Directors have also reviewed all Standards and Interpretations issued, but not yet effective for the period 30 June
2021. As a result of this review the Directors have determined that there is no material impact of the Standards and
Interpretations issued but not yet effective on the Company.
(d) Going Concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and settlement of liabilities in the normal course of business.
The Group incurred a net loss for the year ended 30 June 2021 of $1,624,984 and net cash outflows from operating
activities of $1,208,190, net cash outflows from investing activities of $2,685,705 and net cash inflows from financing
Castillo Copper Limited
28 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
activities of $11,597,586. At 30 June 2021, the Group had a net asset position of $19,025,358. The cash and cash
equivalents balance at 30 June 2021 was $10,854,829.
The directors have reviewed the Group’s financial position and are of the opinion that the use of the going concern
basis of accounting is appropriate.
(e) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Castillo Copper Limited and its subsidiaries
as at 30 June each year (‘the Company’).
Subsidiaries are all those entities (including special purpose entities) over which the Company has control. The
Company controls an entity when the company is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power to direct the activities of the Group.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, 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-company transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the Company and cease to be
consolidated from the date on which control is transferred out of the Company.
A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity
transaction.
(f) Foreign Currency Translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Company’s entities are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The functional and presentation
currency of Castillo Copper Limited is Australian dollars. The functional currency of the Chilean subsidiary is Chilean
Peso. The functional currency of the Zambian subsidiaries is United States Dollars.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the statement of comprehensive income.
(iii) Group entities
The results and financial position of all the Company entities (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:
•
assets and liabilities for each statement of financial position presented are translated at the closing rate at
the date of that statement of financial position;
Castillo Copper Limited
29 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
•
•
income and expenses for each statement of comprehensive income are translated at average exchange
rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to
foreign currency translation reserve.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share
of such exchange differences are recognised in the statement of comprehensive income, as part of the gain or loss on
sale where applicable.
(g) Plant and Equipment
Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. Repairs and maintenance expenditure is charged to the statement of comprehensive income
during the financial period in which it is incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the Group
commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Furniture, Fixtures and Fittings
10%
Computer and software
20% - 35%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial
position date.
Derecognition
Additions of plant and equipment are derecognised upon disposal or when no further future economic benefits are
expected from their use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are recognised in the statement of comprehensive income.
(h) Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the
asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value
in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets of the Group. In such cases the asset is tested for impairment as part of the
cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable
amount.
Castillo Copper Limited
30 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used
to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the
carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the
asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in
which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
(i) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area
of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure,
but does not include general overheads or administrative expenditure not having a specific nexus with a particular area
of interest.
Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a
mining operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the
following conditions is met:
•
such costs are expected to be recouped through successful development and exploitation of the area of
interest or, alternatively, by its sale; or
•
exploration and evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and
significant operations in relation to the area are continuing.
Expenditure which fails to meet the conditions outlined above is impaired; furthermore, the Directors regularly review
the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be
recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the
requirements of AASB 6 Exploration for and evaluation of mineral resources. Exploration assets acquired are
reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions referred
to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired,
is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the
entity.
Castillo Copper Limited
31 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not
expected to be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group’s rights of
tenure to that area of interest are current.
(j) Trade and Other Receivables
Trade receivables, which generally have 30 – 90 day terms, are recognised and carried at original invoice amount less
an allowance for any uncollectible amounts.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off
by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the
Group will not be able to collect all amounts due according to the original contractual terms. Furthermore, the Group
applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from
initial recognition of the receivables. Factors considered by the Group in making this determination include known
significant financial difficulties of the debtor, review of financial information and significant delinquency in making
contractual payments to the Group. The impairment allowance is set equal to the difference between the carrying
amount of the receivable and the present value of estimated future cash flows, discounted at the original effective
interest rate. Where receivables are short-term, discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses.
When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written
off are credited against other expenses in the statement of comprehensive income.
(k) Cash and Cash Equivalents
Cash and short term deposits in the statement of financial position include cash on hand, deposits held at call with
banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts
are shown as current liabilities in the statement of financial position. For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and cash equivalents as described above.
(l) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of comprehensive income net of any reimbursement.
Provisions are measured at the present value or management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period.
Castillo Copper Limited
32 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate, the
risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Restoration and rehabilitation
Refer to Note 2(n) for the Group’s policy in respect of restoration and rehabilitation.
(m) Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to be
reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the
related exploration and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral
resources, future technological changes which could impact the cost of mining, future legal changes (including changes
to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future,
this will reduce profits and net assets in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached
a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.
To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce
profits and net assets in the period in which this determination is made.
Share-based payment transactions
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 is determined by using a Black and Scholes model,
using the assumptions detailed in note 12.
Rehabilitation provision
The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of
the environment. The Group recognises management’s best estimate for asset retirement obligations in the period in
which they are incurred. Actual costs incurred in the future periods could differ materially from the estimates.
Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could
affect the carrying amount of this provision.
Castillo Copper Limited
33 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
(n) Rehabilitation provision
A provision for rehabilitation and restoration is recognised when there is a present obligation as a result of activities
undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount
of the provision can be measured reliably. The estimated future obligations include the costs of abandoning sites,
removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle
the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes in the
estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and
amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory
in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of
the provision for rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on
the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset.
(o) Income Tax
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will be
recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the reversal
of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the
near future.
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 the statement of comprehensive income 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 income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets
and unused tax losses to the extent that it is probable that future tax profits will be available against which deductible
temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws)
that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised
to the extent that sufficient future assessable income is expected to be obtained. Income taxes relating to items
recognised directly in equity are recognised in equity and not in the statement of comprehensive income.
(p) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Castillo Copper Limited
34 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
(q) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue is capable of being reliably measured. The following specific recognition criteria must also be met before
revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying
amount of the financial asset.
(r) Earnings / loss per share
Basic earnings / loss per share
Basic earnings / loss per share is calculated by dividing the profit/loss attributable to equity holders of the Group,
excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares,
adjusted for any bonus elements.
Diluted earnings / loss per share
Diluted earnings / loss per share is calculated as net profit/loss attributable to members of the Group, adjusted for:
•
•
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of
potential ordinary shares; and
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for
any bonus elements.
(s) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables or
payables in the statement of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
(t) Trade and other payables
Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the
consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the
Group.
(u) Share-based payment transactions
The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors)
of the Group in the form of share based payment transactions, whereby individuals render services in exchange for
shares or rights over shares (‘equity settled transactions’).
Castillo Copper Limited
35 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
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 is determined by using the Black Scholes formula taking into account the terms
and conditions upon which the instruments were granted, as discussed in note 12(e).
In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked
to the price of the shares of Castillo Copper Limited (‘market conditions’).
The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become
fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of
the Group, will ultimately vest. This opinion is formed based on the best available information at balance date. No
adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions
is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for
a period represents the movement in cumulative expense recognised at the beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
Where the terms of an equity settled award are modified, as a minimum, an expense is recognised as if the terms had
not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of
the modification, as measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the 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, as described in the previous paragraph. The cost of
equity-settled transactions with non-employees is measured by reference to the fair value of goods and services
received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of
the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss
per share (see note 14).
(v) Comparative information
When required by Accounting Standards, comparative information has been reclassified to be consistent with the
presentation in the current year.
(w) Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for
the allocation of resources to operating segments and assessing their performance.
(x) Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes,
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
Castillo Copper Limited
36 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
transaction between market participants at the measurement date; and assumes that the transaction will take place
either: in the principle market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interest. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed each reporting date and
transfers between levels are determined based on a reassessment of the lowest level input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is
either not available or when the valuation is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to
another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a
comparison, where applicable, with external sources of data.
(y) Parent entity financial information
The financial information for the parent entity, Castillo Copper Limited, disclosed in Note 18 has been prepared on the
same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s
financial statements. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than
being deducted from the carrying amount of these investments.
Castillo Copper Limited
37 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
Segment Information
3.
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are
used to make strategic decisions. The entity has four geographical segments being exploration in Northwest
Queensland (NWQ), New South Wales (Cangai), New South Wales (Broken Hill) (to be divested in 2022) and Zambia.
Revenue attributable to all segments is immaterial. Allocation of asset, liabilities, income and expenses to each
segment is shown below:
2021
Segment assets and
liabilities
Current assets
Non-current assets
Current liabilities
Segment income and
expenses
Interest income
Other income
Impairment
Interest expense
Depreciation expense
Other expenses
Total
2020
Segment assets and
liabilities
Current assets
Non-current assets
Current liabilities
Segment income and
expenses
Interest income
Other income
Impairment
Interest expense
Depreciation expense
Other expenses
Total
4.
Other expenses
Travel and accommodation
Legal
Insurance
Foreign Exchange (Gains)/Losses
Investor Relations
Other
Total other expenses
NWQ
(QLD)
Cangai
(NSW)
Broken Hill
(NSW)
Zambia Unallocated
Total
$
-
1,973,078
$
-
5,380,977
$
-
289,580
$
-
877,167
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
11,076,273 11,076,273
8,520,921
(571,836)
(571,836)
119
591
10,734
-
-
-
(1,636,309)
(1,624,984)
591
10,734
-
-
-
(1,636,309)
(1,624,984)
Cangai
(NSW)
Broken Hill
(NSW)
Zambia
Unallocated
Total
$
$
$
10,865
711,930
$
3,193,676
120
-
(443,559)
$
3,193,676
5,865,298
(564,649)
-
-
-
-
-
-
-
-
$
NWQ
(QLD)
149,177
-
-
-
-
-
-
-
-
4,993,206
(121,090)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
708
81,005
(19,011)
(60,220)
-
(1,844,652)
(1,842,170)
708
81,005
(19,011)
(60,220)
-
(1,844,652)
(1,842,170)
2021
$
2020
$
112
64,789
49,827
72,221
444,101
12,691
(23,056)
(28,250)
252,766
18,990
370,860
179,565
76,770
749,666
Castillo Copper Limited
38 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
5.
Income Tax
(a) Income tax expense
Major component of tax expense for the year:
Current tax
Deferred tax
(b) Numerical
tax expense
reconciliation between aggregate
recognised in the statement of comprehensive income and tax
expense calculated per the statutory income tax rate
A reconciliation between tax expense and the product of accounting result
before income tax multiplied by the Group’s applicable tax rate is as follows:
Loss from continuing operations before income tax expense
Tax at the Australian rate of 30% (2020: 30%)
Non-allowable expenses
Income tax benefit not bought to account
Income tax expense
(c) The following deferred tax balances have not been bought to account:
Assets
Total losses available to offset against future taxable income
Total accrued expenses
Total share issue costs deductible over five years
Deferred tax liability on capitalised exploration costs
Deferred tax assets not brought to account as realisation is not regarded as
probable
Deferred tax asset recognised
(d) Unused tax losses
Unused tax losses
Potential tax benefit not recognised at 30% (2020: 30%)
The benefit for tax losses will only be obtained if:
2021
$
2020
$
-
-
-
-
-
-
(1,624,984)
(1,842,170)
(487,495)
(552,651)
96,145
-
391,350
552,651
-
-
2021
2020
$
$
8,397,012
7,125,637
53,960
565,080
72,184
322,869
(2,188,397)
(1,510,880)
(6,827,655)
(6,010,229)
-
-
2021
$
2020
$
27,990,034 24,810,474
8,397,012
7,443,142
(i)
the Group derives future assessable income in Australia of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised;
(ii)
the Group continues to comply with the conditions for deductibility imposed by tax legislation in
Australia; and
(iii)
no changes in tax legislation in Australia, adversely affect the Group in realising the benefit from the
deductions for the losses.
Castillo Copper Limited
39 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
6.
Cash and cash equivalents
Reconciliation of operating loss after tax to net the cash flows used in
operations
Loss from ordinary activities after tax
Non-cash items
Exploration expenditure impaired
Share-based payments
Adviser invoices settled in shares
Foreign exchange (gain)/loss
Finance expense
Profit & loss items classed as investing activities
Consulting fees relating to exploration expenditure
Changes in assets and liabilities
Increase / (decrease) in trade and other payables
(Increase) / decrease in other receivables
Net cash flow used in operating activities
(b) Reconciliation of cash
Cash balance comprises:
Cash at bank
2021
$
2020
$
(1,624,984)
(1,842,170)
-
19,011
318,830
169,000
229,095
-
(21,164)
(28,520)
-
60,220
120,000
-
(10,142)
560,675
(159,730)
(43,581)
(1,208,190)
(1,045,270
10,854,829
3,129,985
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Part of the cash flows for exploration expenditure have been reclassified as investing activity cash flows in the annual report,
these cash flows were previously classified as operating activity cash flows in the Appendix 5B quarterly cash flows.
7.
Other Receivables
Current
GST/VAT receivable
Prepayments
Non-Current
Tenement guarantees
There are no current tenement guarantees.
2021
2020
$
$
178,642
42,802
221,444
44,143
19,575
63,718
349,100
117,100
Castillo Copper Limited
40 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
8.
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation phase:
Opening balance
Exploration and evaluation expenditure on acquisition of Zed Copper Pty Ltd1
Exploration and evaluation expenditure on acquisition of Wyloo metals
tenements (note 9)
Exploration and evaluation expenditure during the period
Rehabilitation (note 11)
Impairment2
Closing balance
2021
2020
$
$
5,748,198
4,777,776
-
612,500
215,000
-
2,329,713
376,933
(121,090)
-
-
(19,011)
8,171,821
5,748,198
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is
dependent on the successful development and commercial exploration or sale of respective areas.
1Expenditure acquired on completion of the acquisition of Zed Copper Pty Ltd.
2These impairments relate predominantly to the Marlborough Project in the prior year as the tenements were relinquished.
9.
Asset Acquisition
The group completed the acquisition of two New South Wales exploration tenements (EL 8434 & 8435) from Wyloo
Metals Ltd (“the Wyloo Tenements”) on 15 October 2020 for a total purchase consideration of $215,000.
The Wyloo tenements are not considered a business under AASB 3 Business Combinations; and the acquisition is
accounted for as an acquisition of exploration assets.
10.
Trade and other payables
Current
Trade and other payables
Accruals
2021
$
383,303
188,533
571,836
2020
$
130,270
313,289
443,559
Trade and other payables are non-interest bearing and payable on demand. Due to their short-term nature, the
carrying value of trade and other payables is assumed to approximate their fair value.
11.
Rehabilitation Provision
Rehabilitation provision
Rehabilitation provision
Opening balance
Rehabilitation completed during the year
Closing balance
2021
$
-
-
2020
$
121,090
121,090
121,090
121,090
(121,090)
-
-
121,090
Castillo Copper Limited
41 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
12.
Issued Capital
(a) Issued and paid up capital
Ordinary shares fully paid
(b) Movements in ordinary shares on issue
Opening balance
Shares issued in London Stock Exchange IPO
Shares issued to sophisticated investors
Shares issued to advisors
Conversion of convertible notes
Shares issued from exercise of options
Shares issued to consultants
Shares issued per Zed Copper acquisition
Transaction costs on share issue
(c) Ordinary shares
2021
2020
$
$
34,464,159
23,034,322
2021
Number of
shares
2020
Number of
shares
$
$
926,723,065
81,117,618
237,155,313
4,382,991
-
7,133,333
-
-
-
23,034,322
2,454,515
9,965,973
276,139
-
310,000
-
-
(1,576,790)
641,594,475 17,870,979
-
3,920,013
75,000
880,610
-
128,970
562,500
-
186,329,545
3,750,000
57,716,574
-
6,082,471
31,250,000
-
(403,750)
1,256,512,320
34,464,159
926,723,065 23,034,322
The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the
right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the
proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.
(d) Share options
At 30 June 2021 there were 358,362,757 (30 June 2020: 278,462,786) unlisted options with various exercise prices
and expiry dates and 61,500,000 listed options (ASX:CCZO), with an exercise price of $0.05 per option and an expiry
date of 27 March 2023 on issue. In addition, there were 17,241,379 listed options issued after the end of the year that
relate to share based payments for services rendered during the year ended 30 June 2021.
The following share-based payment arrangements were in place during the period:
Series
Number
Grant date
Expiry date
Exercise
price
$
Fair value at
grant date
Vesting date
1
2
3
4
5
6
7
8
9
10
11
12
13
15,000,000
5 July 2017
5 July 2020
17,000,000
16 May 2018
31 December 2023
15,000,000
1 February 2019
1 February 2022
5,000,000
1 February 2019
31 December 2023
19,200,000
3 December 2019
2 December 2022
3,000,000
3 December 2019
2 December 2022
3,000,000
31 December 2019 31 December 2022
6,000,000
31 December 2019 31 December 2022
7,000,000
23 June 2020
30 June 2023
$0.03
$0.10
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
1,582,353
2 October 2020
1 September 2023
£0.017
19,000,000
2 October 2020
30 September 2023
14,285,714
15 June 2021
31 July 2024
$0.05
$0.08
2,955,665
16 June 2021
1 August 2024
£0.044
$0.008
$0.018
$0.003
$0.005
$0.005
$0.005
$0.005
$0.004
$0.013
$0.023
$0.018
$0.0218
$0.0205
5 July 2017
16 May 2018
1 February 2019
1 February 2019
3 December 2019
3 December 2019
31 December 2019
30 June 2020
23 June 2020
2 October 2020
2 October 2020
15 June 2021
16 June 2021
Castillo Copper Limited
42 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
During the period 12,666,667 options expired, with an exercise price of $0.03 and a fair value at grant date of $0.008.
During the period 2,333,333 options were exercised, with an exercise price of $0.03 and a fair value at grant date of
$0.008 and 4,800,000 options were exercised with an exercise price of $0.05.
No unlisted options have been issued since the end of the year. Since the end of the year, 159,439,781 listed options
have been issued as free attaching options and as consideration to brokers in the most recent capital raising.
Weighted remaining contractual life (years)
Weighted average exercise price
1.83
$0.0532
Options granted as equity compensation benefits to Key Management Personnel during the year are set out in the
audited remuneration report.
(e) Weighted average fair value
The fair value of the equity-settled options granted during the period was estimated as at the date of grant using the
Black and Scholes model taking into account the terms and conditions upon which they were granted, as follows:
Series
1
2
3
4
5
6
7
8
9
10
11
12
13
Expected volatility (%)
120 100
87
87
92
92
92
93
100 104 104 104 104
Risk-free interest rate (%)
2.2
1.9
2.0
2.0 0.77 0.77 0.77 0.77 0.27 0.18 0.18 0.09 0.10
Expected life of option (years)
Exercise price (cents/pence)
3
3
5.6
10
3
5
4.9
5
3
5
3
5
3
5
3
5
3
2.9
3
3.1
3.1
5
1.7p
5
8
4.4p
Grant date share price (cents/pence)
1.8
3.9
1.6
1.6
1.8
1.8
2.0
1.7
2.6 2.6p 4.2
4.2 2.2p
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome. No other features of options granted were incorporated into the
measurement of fair value.
(f)
Performance Shares – issue for Zed Copper Pty Ltd acquisition
During the 2020 financial year, 46,875,000 Class A performance shares and 46,875,000 Class B performance shares
were issued to vendors of Zed Copper Pty Ltd.
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on delineation of a JORC resource of 200,000
tonnes of contained copper at a minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion of a preliminary feasibility study
demonstrating an internal rate of return greater than 25% within 5 years of execution of the Share Sale Agreement.
13.
Reserves
Share based payment reserve
The share based payment reserve is used to record the value of equity benefits provided to Directors and executives
as part of their remuneration and non-employees for their services.
Castillo Copper Limited
43 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
Foreign currency translation reserve
The foreign exchange differences arising on translation of balances originally denominated in a foreign currency into
the functional currency are taken to the foreign currency translation reserve. The reserve is recognised in profit or loss
when the net investment is disposed of.
14.
Loss per Share
Loss used in calculating basic and dilutive EPS
Weighted average number of ordinary shares used in
calculating basic loss per share:
Effect of dilution:
Share options
Adjusted weighted average number of ordinary shares used
in calculating diluted loss per share:
2021
$
2020
$
(1,624,894)
(1,842,170)
Number of Shares
1,019,444,466
744,344,197
-
-
1,019,444,466
744,344,197
Basic and diluted loss per share (cents per share)
(0.16)
(0.25)
There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the
number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion
of these financial statements.
There are no potential ordinary shares on issue that are considered to be dilutive, therefore basic earnings per share also
represents diluted earnings per share.
15.
Auditor’s Remuneration
The auditor of Castillo Copper Limited is HLB Mann Judd.
Amounts received or due and receivable for:
Audit or review of the financial report of the entity and any other entity in the
Group
Non-audit services – preparation of various reports in relation to the LSE listing
16.
Related party disclosures
a)
Key management personnel
Compensation of key management personnel
Short term employee benefits
Post-employment benefits
Share-based payments
Total remuneration
41,607
10,000
51,607
35,166
5,000
40,166
2021
$
2020
$
255,829
308,469
-
210,840
466,669
-
52,896
361,365
b)
Other transactions with key management personnel
Yingyang Pty Ltd, a company of which Mr Paull is a director, charged the Group director’s fees of $48,000 (2020:
$41,032) and executive fees of $120,000 (2020: $70,000). There was nil outstanding at 30 June 2021 (2020: $30,800).
Castillo Copper Limited
44 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
Coverley Management Services Pty Ltd, a company of which Mr Scott is a director, charged the Group director’s fees of
$48,000 (2020: $48,000). There was nil outstanding at 30 June 2021 (2020: $11,000).
Strategic Business Analysis Ltd, a company of which Mr. Hall is a director, charged the Group directors fees of $39,829
(2020: nil). There was nil outstanding at 30 June 2021 (2020: nil).
c)
Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of Castillo Copper Limited and the
following subsidiaries:
Name of Entity
Country of
Incorporation
Equity Holding
Castillo Copper Chile SPA
Castillo Exploration Limited
Qld Commodities Pty Ltd
Total Iron Pty Ltd
Total Minerals Pty Ltd
BHA No. 1 Pty Ltd
Atlantica Holdings (Bermuda)
Zed Copper Pty Ltd
Chalo Mining Group Ltd
Luflilian Resources Zambia Ltd
Belmt Resources Mining Company Ltd
Chile
Australia
Australia
Australia
Australia
Australia
Bermuda
Australia
Zambia
Zambia
Zambia
2021
100%
100%
100%
100%
100%
100%
75%
100%
100%
100%
50%
2020
100%
100%
100%
100%
100%
100%
75%
100%
100%
100%
50%
Castillo Copper Limited is the ultimate Australian parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have
been eliminated on consolidation and not disclosed in this note.
17.
Financial Risk Management
Exposure to interest rate, liquidity, and credit risk arises in the normal course of the Group’s business. The Group does
not hold or use derivative financial instruments. The Group’s principal financial instruments comprise mainly of deposits
with banks. The totals for each category of financial instruments are as follows:
Financial Assets
Cash and cash equivalents
Other receivables (current and non-current)
Financial Liabilities
Trade and other payables
2021
$
2020
$
10,854,829
527,741
11,382,570
3,129,958
161,243
3,291,201
571,836
443,559
The Group uses different methods as discussed below to manage risks that arise from these financial instruments. The
objective is to support the delivery of the financial targets while protecting future financial security.
(a) Capital risk management
The Group’s capital comprises share capital and reserves less accumulated losses. As at 30 June 2021, the Group has
net assets of $19,025,358 (2020: $8,494,325). The Group manages its capital to ensure its ability to continue as a going
concern and to optimise returns to its shareholders.
Castillo Copper Limited
45 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
(b) Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the
business and investing excess funds in highly liquid short term investments. The responsibility for liquidity risk
management rests with the Board of Directors.
Alternatives for sourcing future capital needs include the cash position and future equity raising alternatives. These
alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. The Board expects that,
assuming no material adverse change in a combination of our sources of liquidity, present levels of liquidity will be
adequate to meet expected capital needs.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. As at 30 June 2021 any financial liabilities that are
contractually maturing within 60 days have been disclosed as current. Trade and other payables that have a deferred
payment date of greater than 12 months have been disclosed as non-current.
(c) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of
financial instruments. The Group’s exposure to changes to interest rate risk relates primarily to its earnings on cash and
term deposits. The Group manages the risk by investing in short term deposits.
2021
$
2020
$
Cash and cash equivalents
10,854,829
3,129,958
Interest rate sensitivity
The following table demonstrates the sensitivity of the Group’s statement of comprehensive income to a reasonably
possible change in interest rates, with all other variables constant.
Change in Basis Points
Effect on Post Tax Loss ($)
Effect on Equity including
Increase 100 basis points
Decrease 100 basis points
Increase/(Decrease)
retained earnings ($)
Increase/(Decrease)
2021
108,548
2020
31,300
(108,548)
(31,300)
2021
108,548
108,548
2020
31,300
(31,300)
A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term
and long term Australian Dollar interest rates. This would represent two to four movements by the Reserve Bank of
Australia.
(d) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause
the Group to incur a financial loss. The Group’s maximum credit exposure is the carrying amounts on the statement of
financial position. The Group holds financial instruments with credit worthy third parties.
At 30 June 2021, the Group held cash at bank. These were held with financial institutions with a rating from Standard &
Poors of AA- or above (long term). The Group has no past due or impaired debtors as at 30 June 2021.
Castillo Copper Limited
46 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
(e) Fair Value Measurement
There were no financial assets or liabilities at 30 June 2021 requiring fair value estimation and disclosure as they are
either not carried at fair value or in the case for short term assets and liabilities, their carrying values approximate fair
value.
(f) Foreign Exchange
The Group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate
fluctuations arise. The Group does not manage these exposures with foreign currency derivative products. The
carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the balance
date expressed in Australian dollars are as follows:
Chilean Peso (CLP)
Assets
Liabilities
British Pound Sterling (GBP)
Assets
Liabilities
2021
$
101,338
(12,135)
89,203
2020
$
98,205
(11,760)
86,445
2021
$
2020
$
3,631,057
46,934
(13,063)
-
3,617,994
46,934
The Group is exposed to Chilean Peso (CLP) and British Pound Sterling (GBP) currency fluctuations.
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against the
relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key
management personnel and represent management’s assessment of the possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external
loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other
than the currency of the lender or the borrower. A positive number indicates an increase in profit and equity where the
Australian Dollar weakens against the respective currency. For a strengthening of the Australian Dollar against the
respective currency there would be an equal and opposite impact on the profit and equity and the balances below
would be negative.
10% Increase
Profit/(loss) and equity – CLP
Profit/(loss) and equity – GBP
2021
$
8,920
361,799
370,719
2020
$
8,645
4,693
13,338
Castillo Copper Limited
47 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
10% Decrease
Profit/(loss) and equity – CLP
Profit/(loss) and equity – GBP
18.
Parent Entity Information
2021
$
(8,920)
(361,799)
2020
$
(8,645)
(4,693)
(370,719)
(13,338)
The following details information related to the parent entity, Castillo Copper Limited, at 30 June 2020. The information
presented here has been prepared using consistent accounting policies as presented in note 2.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Total equity
Loss of the parent entity
Other comprehensive income for the year
2021
$
2020
$
11,074,975
3,192,418
5,885,974
3,395,588
16,960,949
6,588,006
559,701
552,890
-
-
559,701
552,890
16,401,248
6,035,116
34,464,159
23,034,322
4,092,830
3,366,314
(22,155,741)
(20,365,520)
16,401,248
6,035,116
1,790,221
(2,568,488)
-
-
Total comprehensive loss of the parent entity
1,790,221
(2,568,488)
a) Guarantees
Castillo Copper Limited has not entered into any guarantees in relation to the debts of its subsidiary.
b) Other Commitments and Contingencies
Castillo Copper Limited has not entered into any commitments and does not have any known contingent
liabilities at year end.
Castillo Copper Limited
48 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
19.
Contingent liabilities
The Company has entered into the following royalty agreements:
•
•
•
•
1% net smelter return royalty in respect of the area covered by the tenements acquired from Qld Commodities Pty
Ltd vendors (or their nominee);
3% net smelter return royalty in respect of the area covered by the tenements acquired from Total Minerals Pty Ltd
vendors (or their nominee);
3% net smelter return royalty in respect of the area covered by the tenements acquired from Total Iron Pty Ltd
vendors (or their nominee).
2% net smelter return royalty in respect of the area covered by the tenements acquired from Zed Copper Pty Ltd
vendors (or their nominee).
Other than outlined above, there are no contingent liabilities.
Commitments
20.
In order to maintain current contractual rights concerning its mineral projects, the Group has certain commitments to meet
minimum expenditure requirements. The current minimum commitments at balance date but not recognised as liabilities are as
follows:
Within one year
After one year but not more than five years
Longer than five years
2021
$
2020
$
643,668
420,719
968,475
1,255,000
-
-
1,612,143
1,675,719
Dividends
21.
No dividend was paid or declared by the Group in the period since the end of the financial year, and up to the date of this
report. The Directors’ do not recommend that any amount be paid by way of a dividend for the financial year ended 30
June 2021.
The balance of the franking account is Nil at 30 June 2021 (2020: Nil).
22.
Share-based payments
(a) Shares issued to suppliers During the year, 5,952,206 fully paid ordinary shares were issued to suppliers in lieu of
cash payment of invoices.
(b) Reconciliation to share based payments expense in profit or loss:
Options issued to advisors and consultants
Options issued to directors
$
107,990
210,840
318,830
(c) Fair value of options
The fair value of all options noted above have been determined using the Black & Scholes model taking in to account
the inputs outlined in Note 12(e).
Castillo Copper Limited
49 2021 Annual Report to Shareholders
Castillo Copper Limited
Notes to the consolidated financial statements at and for the year ended 30 June 2021
(d) Performance Rights
During the 2020 financial year, 46,875,000 Class A performance shares and 46,875,000 Class B performance shares
were issued to vendors of Zed Copper Pty Ltd. As the performance conditions are dependent upon future exploration
results, no value has been ascribed to the Class A & Class B Performance Shares as at balance date
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on delineation of a JORC resource of 200,000
tonnes of contained copper at a minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion of a preliminary feasibility study
demonstrating an internal rate of return greater than 25% within 5 years of execution of the Share Sale Agreement.
23.
Subsequent events
The following significant events occurred after 30 June 2021:
NWQ Copper Project
Drilling continued at the Big One Deposit, with initial assays for drill-holes BO_315-317RC returning up to 9.19% Cu
and clearly extending known mineralisation. The best intercepts are summarised below:
9m @ 1.42% Cu from 88m including 4m @ 3.06% Cu from 92m & 1m @ 9.19% Cu from 92m (BO_317RC)
5m @ 1.06% Cu from 141m (BO_316RC)
3m @ 1.22% Cu from 65m (BO_315RC)
Zambia
The Group confirmed a comprehensive IP survey will commence across the key Luanshya and Mkushi Projects. Given
the scale of the campaign, it will take 6-8 weeks to complete and fully analyse the results. However, reconciling these
findings with known anomalous areas at surface should identify priority targets to test-drill.
BHA Project
The Group appointed CPS Capital Group, to restructure and then list, on a best endeavours basis, via an IPO on the
ASX, its wholly-owned BHA Project which comprises a large footprint proximal to Broken Hill’s world-class zinc-lead-
silver deposit. A new entity, Newco, will be formed to house the BHA Project, with the Group slated to retain a
significant interest post-IPO.
Newco will be led by Managing Director, Dr Dennis Jensen, a former Federal Member of Parliament and CSIRO
scientist who has significant experience consulting in the mining industry.
Subject to final approvals to progress the IPO, Newco is targeting to raise a minimum of $4.5m up to a maximum of
$7.0m (and will include a preferential subscription allocation to CCZ shareholders) to fund a comprehensive exploration
campaign to develop the BHA Project.
Board Changes
On 16 August 2021, Mr Geoff Reed was appointed as a Non-Executive Director.
New Shares/Options Issued
In August 2021, the Company issued 40,300,731 new ordinary shares and 159,439,781 listed options to complete the
recent capital raising on the Australian Stock Exchange and London Stock Exchange. Total proceeds raised were
$1,368,966 (AUD) and £177,245 (GBP) ($1,692,631 AUD total).
Other than set out above, there were no known material significant events from the end of the financial year to the date
of this report that have significantly affected, or may significantly affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in future financial periods.
Castillo Copper Limited
50 2021 Annual Report to Shareholders
Castillo Copper Limited
Directors’ Declaration
The directors of the company declare that:
1.
in the directors’ opinion, the financial statements and accompanying notes set out on pages 24 to 50 are in
accordance with the Corporations Act 2001 and:
a.
comply with Accounting Standards and the Corporations Regulations 2001, professional reporting
requirements and all other mandatory requirements; and
b.
give a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the
year ended on that date;
2.
in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable;
3.
the directors have been given the declarations by the Chief Executive Officer (or equivalent) and Chief Financial
Officer (or equivalent) required by section 295A.
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:
Simon Paull
Managing Director
28 September 2021
Castillo Copper Limited
51 2021 Annual Report to Shareholders
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Castillo Copper Limited for the
year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
28 September 2021
M R Ohm
Partner
INDEPENDENT AUDITOR’S REPORT
To the members of Castillo Copper Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Castillo Copper Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit
matter
Carrying amount of deferred exploration
and evaluation expenditure
Refer to Note 8
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources,
the Group
evaluation
and
exploration
capitalises
expenditure and at 30 June 2021 had a balance of
$8,171,821.
all
Our procedures included but were not
limited to the following:
- We obtained an understanding of the
key processes associated with
management’s review of the carrying
Key Audit Matter
How our audit addressed the key audit
matter
Carrying amount of deferred exploration
and evaluation expenditure
Refer to Note 8
We considered this to be a key audit matter
due to its materiality, its importance for the
users’ understanding of
financial
statements as a whole and the degree of audit
effort involved.
the
values of each area of interest.
- We considered the Directors’ assessment
of potential indicators of impairment.
- We obtained evidence that the Group has
current rights to tenure of its areas of
interest.
- We examined the exploration budget and
discussed with management the nature of
planned ongoing activities.
- We enquired with management, reviewed
ASX announcements and
reviewed
minutes of Directors’ meetings to ensure
that
to
the Group had not resolved
discontinue exploration and evaluation at
any of its areas of interest; and
- We examined the disclosures made in the
financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual for the year ended 30 June 2021, but does not include
the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
-
-
-
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Castillo Copper Limited for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
28 September 2021
M R Ohm
Partner
Castillo Copper Limited
ASX Additional Information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is
as follows. The information is current at 14 September 2021.
Distribution of Share Holders
1 - 1,000
1,001
- 5,000
5,001
- 10,000
10,001
- 100,000
100,001
- and over
TOTAL
Ordinary Shares
Number of Holders
Number of Shares
69
14
182
1,738
1,207
3,210
13,502
41,308
1,624,166
75,223,482
1,220,669,725
1,297,572,183
There were 546 holders of ordinary shares holding less than a marketable parcel, with total of 5,306,018 shares
amounting to 0.41% of Issued Capital.
Quoted equity securities as at 14 September 2021
Equity Security
Ordinary Shares
CCZO – Listed Options
CCZOA – Listed Options
CCZOB – Listed Options
Quoted
1,297,572,183
61,500,000
127,418,042
32,021,739
Voting Rights
Each fully paid ordinary share carries the rights of one vote per share.
Unquoted Securities
The number of unquoted securities on issue at 14 September 2021:
Unquoted Securities
Unquoted Options1
Unquoted Options2
Unquoted Options3
Unquoted Options4
Unquoted Options
Unquoted Options5
Performance Shares – Class A
Performance Shares – Class B
Unquoted Options
Unquoted Options
Unquoted Options
Unquoted Options
Number on Issue
17,000,000
5,000,000
15,000,000
57,716,574
52,491,667
9,000,000
46,875,000
46,875,000
102,454,545
1,582,353
19,000,000
79,117,618
Exercise Price
10c
5c
5c
5c
5c
5c
Nil6
Nil7
5c
1.7p
5c
2.8p
Expiry Date
31/12/2023
31/12/2023
1/02/2022
1/08/2022
3/12/2022
31/12/2022
-
-
30/06/2023
01/09/2023
30/09/2023
01/09/2023
Persons holding more than 20% of a given class of unquoted securities as at 14 September 2021:
1. 29% held by Bond Street Custodians Ltd, 26% held by Detroit Capital Pty Ltd, 21 Held by Mr Shane
Lehman
2. 100% held by Ferber Holdings Pty Ltd .
3. 42% held by Mr Shane Lehman
4. 60% held by Jim Nominees Ltd
5. 33% held by JBO Assets Pty Ltd, 33% held by TWW Assets Pty Ltd, 28% held by Mr Shane Lehman.
6. converting to an equal number of CCZ shares on delineation of a JORC resource of 200,000 tonnes
of contained copper at a minimum grade of 0.5% within 5 years of execution of the Share Sale
Agreement. 50% held by N & E Beltz Pty Ltd and 50% held by Resource Corporate Pty Ltd.
7. converting to an equal number CCZ shares on completion of a preliminary feasibility study
demonstrating an internal rate of return greater than 25% within 5 years of execution of the Share
Sale Agreement. 50% held by N & E Beltz Pty Ltd and 50% held by Resource Corporate Pty Ltd.
Substantial Shareholders
There are no substantial shareholders.
57
Castillo Copper Limited
Restricted Securities
There were 430,785 restricted securities under ASX imposed escrow at 14 September 2021.
Stock Exchange
The Company is listed on the Australian Securities Exchange and has been allocated the code “CCZ”. The
“Home Exchange” is Perth.
The Company is also listed on the London Stock Exchange and has been allocated the code “CCZ”.
Other information
Castillo Copper Limited, is incorporated and domiciled in Australia, and is a publicly listed company limited by
shares.
On-Market Buy-Back
There is currently no on-market buy-back in place.
Twenty largest holders of quoted securities as at 14 September 2021
Name
COMPUTERSHARE CLEARING PTY LTD
SUNSET CAPITAL MANAGEMENT PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
TWW ASSETS PTY LTD
JBO ASSETS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
TAKA CUSTODIANS PTY LTD
MR BRADLEY JOHN KENNEY
REBECCA BRADLEY
GUINA GLOBAL INVESTMENTS PTY LIMITED
AGENS PTY LTD
RESOURCE CORPORATE PTY LTD
HOLDSWORTH BROS PTY LTD
CITICORP NOMINEES PTY LIMITED
FOUCART PTY LTD
MRS MARIA KATALIN VAROLI
BEARAY PTY LIMITED
AMAL TRUSTEES PTY LTD
REDIMA PTY LTD
JD SQUARED INVESTMENTS PTY LTD
Total
58
No. of Shares
%
242,523,782
18.69%
30,061,652
28,975,327
2.32%
2.23%
24,459,524
1.89%
24,259,525
1.87%
19,186,211
1.48%
17,793,750
15,000,000
15,000,000
11,000,000
1.37%
1.16%
1.16%
0.85%
10,880,954
0.84%
10,760,689
0.83%
10,000,000
8,635,480
8,507,500
8,500,000
0.77%
0.67%
0.66%
0.66%
8,333,320
0.64%
8,210,180
8,155,887
7,750,000
0.63%
0.63%
0.60%
525,136,639
40.47%
Castillo Copper Limited
Tenement information as required by
Listing Rule 5.3.3
JACKADERRY
Tenement ID
New England Orogen in NSW
Ownership at
end of year
100%
100%
100%
Status
Granted
Granted
Granted
EL8635
EL8625
EL8601
BROKEN HILL
Tenement ID
located within a 20km radius of Broken Hill, NSW
Ownership at
end of year
100%
100%
100%
100%
Granted
Granted
Granted
Granted
EL8599
EL8572
EL8434
EL8435
Status
MT OXIDE
Tenement ID
Mt Isa region, northwest Queensland
Ownership at
end of year
100%
100%
100%
100%
100%
EPM 26513
EPM 26525
EPM 26574
EPM 26462
EPM27440
Granted
Granted
Granted
Granted
Application
Status
Zambia
Status
Tenement ID
Ownership at
end of year
100%
100%
100%
0%*
55%*
55%*
100%
23914-HQ-SEL
23913-HQ-SEL
24659-HQ-LEL
22448-HQ-LEL
25195-HQ-LEL
25273-HQ-LEL
25261-HQ-LEL
*CCZ can earn up to 80% by meeting previously
disclosed milestones
Granted
Granted
Granted
Granted
Granted
Granted
Granted
59