ABN 54 118 912 495
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2021
CATALYST METALS LIMITED
CONTENTS
PAGE
CORPORATE DIRECTORY
CHAIRMAN’S REVIEW
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDIT REPORT
ADDITIONAL INFORMATION
2
3
5
23
24
25
26
27
28
54
55
58
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
1
CATALYST METALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
AUDITORS
Stephen Boston (Non-Executive Chairman)
Robin Scrimgeour (Non-Executive Director)
Gary Schwab (Non-Executive Director)
Bruce Kay (Non-Executive Director)
RSM Australia Partners
Level 32/2 The Esplanade
Perth, Western Australia 6000
COMPANY SECRETARY
SHARE REGISTRY
Frank Campagna
REGISTERED OFFICE
44 Kings Park Road
West Perth, Western Australia 6005
Telephone: +618 6263 4423
+618 9284 5426
Facsimile:
admin@catalystmetals.com.au
Email:
www.catalystmetals.com.au
Website:
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney, New South Wales 2000
Telephone: 1300 288 664 or
+612 9698 5414
Email: hello@automicgroup.com.au
Website: www.automicgroup.com.au
STOCK EXCHANGE LISTING
Catalyst Metals Limited is listed on ASX Limited
Home Exchange – Perth
ASX code: CYL & CYLOA
GENERAL INFORMATION
The financial statements cover Catalyst Metals Limited as a consolidated entity (“Group” or
“consolidated entity”) consisting of Catalyst Metals Limited and the entities it controlled at the end of, or
during, the year. The financial statements are presented in Australian dollars, which is Catalyst Metals
Limited’s functional and presentation currency.
Catalyst Metals Limited is a listed public company limited by shares, incorporated and domiciled in
Australia.
A description of the nature of the consolidated entity’s operations and its principal activities are included
in the Directors’ Report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on
30 September 2021. The Directors have the power to amend and reissue the financial statements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
CHAIRMAN’S LETTER
Dear Shareholder,
The 2021 financial year has seen another significant step forward for your Company as it continued to
consolidate its position as the most advanced gold explorer in the North Central Victorian Gold Fields
whilst also becoming a gold producer following the acquisition of the fully operational high grade Henty
Gold Mine in Tasmania. This acquisition delivered on a commitment made to our major shareholder base
to pursue opportunities to acquire an operational gold mine with great exploration upside.
Some of the highlights of the Company’s year are listed below.
In October 2020, the Company announced confirmation of multiple gold structures at the Tandarra Gold
Project from diamond drilling at the Tomorrow zone, extensions of gold mineralisation at Macnaughtan
from air core drilling and enhancement of gold mineralisation at the recently discovered Lawry zone.
The Company also announced in October 2020 that new zones of gold mineralisation with values of up
to 43.5g/t Au had been intersected east of the Boyd’s Dam trend which represented the discovery of a
new mineralised structure. Further shallow high grade gold mineralisation was intersected at Boyd North.
On 21 December 2020, the Company announced additional outstanding drilling results from Boyd’s Dam
(25 metres @ 23g/t Au, 7 metres @ 8.8g/t Au, 3 metres @ 19.3g/t Au, 7 metres @ 7.7g/t Au and 1 metre @
32g/t Au), as well as the acquisition of the Henty Gold Mine in Tasmania, with significant in-mine and near
mine exploration upside for a total cost of $20 million (via a mix of shares, cash, two equal future dated
deferred cash payments and a contingent deferred payment).
The Company also announced a Share Purchase Plan which was completed during the March 2021
quarter and raised $4.8 million through the issue of 2,296,025 fully paid ordinary shares at an issue price of
$2.10 per share.
Settlement of the acquisition of the Henty Gold Mine was completed on 20 January 2021, with the
Company becoming a gold producer from that date.
On 4 February 2021, the Company announced the completion of a private placement of $1.26 million (at
$2.10 per share) to a new shareholder based in Singapore.
In March 2021, the Company announced visible gold in deep structure and high grade gold
mineralisation from diamond drilling at the Four Eagles Gold Project. Intersections of 1.25 metres @ 117.0g/t
Au, 0.3 metres @ 22.5g/t Au and 0.3 metres @ 33.8g/t Au were reported.
On 1 April 2021, the Company announced the purchase of a 263 hectare block of freehold land on behalf
of the Four Eagles Joint Venture. The land covers the Boyd’s Dam gold zone as well as potential newly
discovered gold zones to the east. Ownership allows the Joint Venture to carry out drilling throughout the
year (subject to weather), as well as security of land title over any future gold project development.
On 15 April 2021, the Company announced high grade zones with visible gold at the Tandarra Gold
Project with two diamond drill holes at the Macnaughtan prospect intersecting visible gold and reporting
grades of up to 412 g/t Au. At the nearby Lawry prospect, infill air-core drilling delivered 6 metres @ 3.16g/t
Au and 2 metres @ 16.33g/t Au.
On 21 April 2021, the Company announced that the Henty Gold Mine had exceeded expectations by
delivering positive operating cash flow and an estimated production forecast of 25,000 ounces of gold
for calendar year 2021.
On 19 May 2021, the Company announced the receipt of favourable metallurgical results for Boyd’s Dam.
The test work indicated that the material is non-refractory, 97% gold recovery was achieved by gravity
concentration & direct cyanidation, 99% gold recovery could be obtained from a combined gravity &
floatation concentrate and results enable a number of processing alternatives to be evaluated for Boyd’s
Dam.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
CHAIRMAN’S LETTER
On 22 June 2021, the Company announced high grade gold intersections up to 600g/t Au from in-mine
near surface exploration at the Henty Gold Mine. Twenty six intersections were recorded with greater than
20g/t Au metres providing the Company with confidence in future higher grade gold mining being
achieved at Henty.
The Board would like to especially acknowledge the outstanding work and effort of our technical team
headed up by our Technical Director, Bruce Kay, as well as the management team, all our employees.
More recently, we welcomed the valuable addition of Dion Alford as General Manager of Operations at
Henty and all the people in his team at Henty who have seamlessly joined the Company, and all of whom
will be contributing to the future success of our Company.
In closing off on yet another year of progress for our Company - your Board would like to acknowledge
and thank all of its many loyal shareholders (old and new), our Joint Venture Partners and the many
consultants and advisers, for all they have done to enhance and contribute towards the future growth of
your Company as it continues to position itself to make a major high grade gold discovery in both Victoria
and Tasmania.
Stephen Boston
Chairman
30 September 2021
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
4
CATALYST METALS LIMITED
DIRECTORS’ REPORT
The Directors of Catalyst Metals Limited present their report on the consolidated entity for the year ended
30 June 2021.
DIRECTORS
The names of the Directors in office at any time during or since the end of the financial year are:
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
COMPANY SECRETARY
Frank Campagna
FINANCIAL POSITION
The net assets of the Group are $54,145,251 as at 30 June 2021 (2020: $22,685,119).
CORPORATE STRUCTURE
Catalyst Metals Limited is a company limited by shares that is incorporated and domiciled in Australia.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year were mineral exploration and evaluation and
production of gold.
RESULTS OF OPERATIONS
The operating loss after income tax of the Group for the year ended 30 June 2021 was $102,441 (2020:
$1,746,832).
DIVIDENDS
No dividend has been paid during or is recommended for the financial year ended 30 June 2021.
REVIEW OF OPERATIONS
The Company has made major advances in 2020/21 with excellent exploration results in Victoria at Four
Eagles Gold Project, Tandarra Gold Project and the Drummartin exploration project. Significantly, in
January 2021, Catalyst purchased the Henty Gold Mine in Tasmania, and this has added resources, gold
production, cash flow and exploration upside. In the 5 months and 12 days of mine ownership, the
company produced 11,677 ounces of gold and revenue of $28.5 million
Victoria Introduction and Overview
Catalyst has significant interests in two retention licences (RL’s) and fourteen exploration licences (EL’s)
over the Whitelaw Gold Belt and similar geological terranes both to the east and to the west (Figure 1).
These licences total some 2,246 square kilometres in area with the addition of the Golden Camel Project,
where Catalyst has the right to acquire an interest in the Golden Camel mining leases MIN5548 and
MIN5570 (Golden Camel mine) (Figure 1).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
The Whitelaw Fault is a 75 kilometre long geological structure thought to control the emplacement of the
Bendigo gold deposits, which extends in a generally northerly direction from Bendigo in favourable
Ordovician rocks beneath the covering veneer of the Murray Basin sediments. In particular, the Four
Eagles and Tandarra Gold Projects (respectively 55 kilometres and 40 kilometres north-northwest of
Bendigo) contain gold discoveries similar in structural style but differing mineralogically to the historic
Bendigo goldfield. The regional fault systems parallel to the Whitelaw Fault also provide potential for
Bendigo and/or Fosterville-style discoveries at the Drummartin, Boort and Golden Camel projects.
Significant developments during the financial year included the following:
Four Eagles Gold Project
•
•
•
Further high grade intersections were recorded at Boyd’s Dam and Boyd North
Excellent recoveries were seen in metallurgical testwork from gravity, flotation and cyanide leaching
Scoping studies continued on the viability of mining on the Boyd’s Dam mineralisation with extensive
groundwater and geotechnical studies
• 650 hectares of freehold land were purchased over the Boyd’s Dam project
Tandarra Gold Project
• High grade gold intersections drilled at Macnaughtans Prospect, extending the strike length to 1.4
kilometres
Further high grade gold intersections recorded at the new Lawry Zone
•
• Multiple intersections further defined repetitions at depth beneath the main Tomorrow Zone
•
mineralisation
Scoping studies on potential open pit and underground development are in progress on the
Tomorrow Zone
Drummartin Project
•
•
Large air core drilling program completed on a further five of the thirteen gravity targets
Indications of gold mineralisation present at Target 9
Golden Camel Project
• High grade gold intersections drilled at Golden Camel and Toolleen prospects
• Catalyst has earned 50.1% interest in the regional joint venture (EL5449, EL5490)
Other Exploration Projects
Air core drilling was carried out on the Macorna Project (EL5521, EL006894 and EL006549) and to the north
(EL5295) and east (EL006859) of the Four Eagles Gold Project. The large ground gravity survey was
completed at Boort (EL06670).
COVID-19 pandemic management
Exploration activities have been affected by the inability of drilling contractors to travel from New South
Wales as well as the issues of decreased communication of staff and management. Nevertheless, drilling
has continued throughout most of the financial year.
FOUR EAGLES GOLD PROJECT
The Four Eagles Gold Project is a joint venture between Catalyst’s 100%-owned subsidiary, Kite Gold Pty
Ltd and Gold Exploration Victoria Pty Ltd (GEV). The project is managed by Catalyst and is jointly funded
(50:50) by Catalyst and GEV within the Four Eagles Joint Venture.
The Four Eagles Joint Venture includes retention license RL006422 and adjoining EL’s (Figure 1). The
retention licence covers an envelope of gold mineralisation about 6 kilometres long and 2.5 kilometres
wide with high grade gold occurring in at least three structural zones trending roughly north-south (Boyd’s
Dam - Boyd North, Hayanmi and Pickles; as detailed on Figure 3). Additional prospective structural zones
are shown including the Cunneens prospect to the west and Eagle 5 and Eagle 6 to the east.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 1: Whitelaw Gold Belt and Parallel Structural Zones showing
Catalyst managed tenement holdings
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Drilling at Boyd’s Dam - Boyd North during 2020-21 included diamond (DD), reverse circulation (RC) and
air-core (AC) programs. The DD programmes produced further high grade gold intersections and showed
the presence of the Boyd Western Shear that extends over the 1.5 kilometre strike length of the system
and may represent a feeder structure to the flatter west dipping gold zones that contain much of the
shallow high grade shoots. As shown on Figure 2, some of the intersections recorded are:
•
•
•
•
•
4.5 metres @ 17.7g/t Au
1.35 metres @ 117g/t Au
3.0 metres @ 19.3g/t Au
7.0 metres @ 5.7g/t Au
3.0 metres @ 10.0g/t Au
Air core drilling east of Boyd’s Dam at Eagle 5 or Eagle 6 intersected both high grade and lower grade
gold mineralisation (1 metre @ 43.5g/t Au and 9 metres @ 2.0g/t Au).
Figure 2: Longitudinal Projection of Boyd’s Dam–Boyd North showing 2021 diamond and RC drill holes and significant
intercepts
Investigations continued into the geotechnical characteristics of cover sediments, mineralised zones and
enclosing rocks, and the hydrological character of cover and basement. Water monitoring bores were
completed and drawdown tests have been used to measure water flows in the basement rocks and
cover sequence. Hydrological modelling is in progress and this information will be vital in any mining
scenario.
TANDARRA GOLD PROJECT
The Tandarra Gold Project is a joint venture between Catalyst’s 100%-owned subsidiary Kite Operations
Pty Ltd and Navarre Minerals Limited (Navarre). The project is managed by Catalyst and is jointly funded
(51:49) by Catalyst and Navarre within the Tandarra Joint Venture.
The Tandarra Joint Venture covers Retention Licence RL006660. The RL covers an envelope of gold
mineralisation and prospectivity about 12 kilometres long and up to 4 kilometres wide with high grade
gold occurring in three structural zones trending roughly north-south (Tomorrow, Macnaughtans and
Lawry Zones, as detailed on Figure 4).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 3: Four Eagles Gold project showing location of prospect locations, gold trends, 2020-21 drilling program
locations, and area of freehold land purchased.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 4: AC drill plan of the southern portion of the Retention Licence RL006660 showing gold and arsenic enriched
zones and significant results achieved in the southern extension of Macnaughtan Zone and in the discovery of Lawry
Zone
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
OTHER BENDIGO REGIONAL EXPLORATION
The Golden Camel Joint Venture (Catalyst 50.1% in exploration licences (EL’s) 5449 and 5490, including
the now closed Toolleen mine, with right to purchase a 50.1% interest in the Golden Camel mining leases)
advanced with diamond drilling on the Golden Camel mining licence and RC drilling on the Toolleen
Project. The best diamond drillhole at Golden Camel contained 9 metres @ 5g/t Au which shows the
extension of the gold mineralisation below the oxide zone. At Toolleen an RC hole intersected 6 metres
@ 9.7g/t Au including 2 metres @ 27.7g/t Au. Catalyst has now earned a 50.1% interest in the joint venture
on the exploration licences and is considering its option to purchase 50.1% of the mining licences.
At the Boort exploration licence EL006670 (Figure 1), Catalyst as manager of the joint venture with GEV
has carried out a detailed gravity survey over the entire exploration licence and plans air core drilling
over the gravity targets in the 2021-22 year.
At Drummartin (EL006507, Figure 1) a large air core drilling program was completed over five gravity
targets and assays were still awaited at the end of the financial year.
HENTY GOLD MINE TASMANIA
On the 20 January 2021, Catalyst acquired the Henty Gold Mine in Tasmania by purchasing shares in Unity
Mining Pty Ltd (Unity) from Diversified Minerals Pty Ltd. The acquisition of Unity for $8 million in Catalyst
shares at $2.10 per share, $6 million initial cash payment and two deferred payments of $3 million each,
6 and 12 months after acquisition, represent the consideration. In addition to the aforementioned
consideration a contingent payment of up to $5 million may be payable subject to the after tax
performance of Unity.
Following acquisition, the Catalyst focussed upon change management functions that enabled a smooth
transition of ownership and assimilation of personnel into the Company. A full site safety review was
conducted with site management and appropriate changes were implemented. There was renewed
focus on mill recovery, production and exploration strategy, and ensuring that critical spares were
ordered. Catalyst implemented significant upgrades of both the Enterprise Resource Planning (ERP) and
Information Technology capabilities of the site to assist management and operating personnel in their
decision making and reporting functions. These changes have had an immediate positive impact on the
operations.
The past financial year has seen Catalyst advance towards realising its vision of being a leading low cost
gold producer focussed on safety, profitability, sustainability and discovery. As well as continuing its
success as an explorer, with the acquisition of the Henty Gold Mine the Company has now become a
profitable gold producer. This enables Catalyst to reinvest in its projects and provide benefits to all
constituency interests as it continues to undertake significant exploration programmes in both Victoria
and Tasmania.
Both Henty and Victoria represent well endowed high grade mineral provinces with substantial historic
gold production. Acquiring the Henty Gold Mine was complementary to the future of Catalyst as it
develops inhouse underground production and technical services skills and judgement that will assist to
de-risk any future development in Victoria or elsewhere.
Inaugural production for the Company from 20 January to 30 June 2021 was 11,677 ounces of gold at a
C1 cash cost and AISC of $1,506 and $1,731 per ounce respectively. Revenue from the Henty Gold Mine
for the 5 months and 11 days under Catalyst ownership was $28.3 million and after royalties, refining and
operating costs an operating profit of $8.4 million was realised. After allowing for amortisation and
overhead costs an inaugural operating profit before tax of $7.2 million was achieved.
In addition to the gold production, the Company has commenced an aggressive exploration campaign
with three diamond drills operating underground and surface drilling imminent for the September 2021
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Quarter. Spectacular results have already been achieved with several intersections of greater than
100g/t Au being recorded (4.0 metres @ 103.og/t Au, 7.1 metres @ 48.0g/t Au, 0.9 metres @ 90.1g/t au, 3.0
metres @ 34.5g/t au, 1.5 metres @ 121.4g/t Au, 2.65 metres @ 221.0g/t Au, 7.8 metres @ 36.4g/t Au). These
intersections are already impacting the grade of gold production and have added gold ounces to the
resource when CSA completes the updated mineral resource statement effective 30 June 2021. The
objective at Henty is to ultimately increase grade and production to achieve 50,000 ounces of gold per
annum. Regional and in-mine exploration targets are summarised on Figures 5 and 6.
Figure 5: Henty regional tenements showing potential to north and south along the Henty Fault
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 6: Henty longitudinal projection showing areas of exploration potential to be tested in 2021.
Work Health and Safety
During the year the Company significantly invested in upgrading its Work, Health and Safety Standards to
what it believes is industry best practice.
These Standards establish a framework, which provides clear direction on how to enable and achieve
good safety governance. They also allow Catalyst to demonstrate Work Health and Safety (WHS) due
diligence on a systematic approach to effect the management of WHS throughout the organisation.
The WHS Management System Standards then also form the basis for the ongoing monitoring,
measurement and auditing of safety performance and quarterly reporting framework to the Board for
both Victoria and Henty Gold Mine.
Victoria recorded zero lost time injuries for the financial year. Henty Gold Mine, with a workforce of circa
150, has seen a continuous improvement in its safety performance during the year. The TRIFR now stands
at 10 compared to approximately 27 when the mine was acquired.
Henty Gold Mine - TRIFR
Financial Year 2021
80
70
60
50
40
30
20
10
0
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2
1
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Recordable Injuries
HGM TRIFR (12 month)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Environmental Performance
Throughout the year there were no material environmental impacts.
Through ongoing planning and review of management practices the Company continues to assess any
potential impacts and ensure these risks are managed. Annually a simulation exercise is undertaken in
consultation and involvement with regulatory and other constituency interests to ensure the Company
and supporting services are appropriately trained and equipped to manage any event. This is part of a
continuous improvement programme of the Company.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the year the Company acquired 100% of the shares in Unity Mining Pty Ltd. Unity Mining Pty Ltd
owns and operates the high grade gold mine, Henty Gold Mine in Western Tasmania.
There were no other significant changes in the state of affairs of the Group during the financial year.
FUTURE DEVELOPMENTS
To effect further significant exploration outcomes the Company, as well as its joint venture partners, has
funded and budgeted a $31.5 million commitment for financial year 2021-22, $22 million of expenditure
will be committed within Victoria and $9.5 million in the Company’s own right at Henty Gold Mine. This is
the largest commitment Catalyst has ever made towards exploration and confirms its ongoing
commitment in the medium term to building a substantial underground gold mining business.
In the opinion of the Directors there is no additional information available as at the date of this report on
any likely developments which may materially affect the operations of the Group and the expected
results of those operations in subsequent years.
SUBSEQUENT EVENTS
In July 2021 the Company paid $3,000,000 portion of deferred consideration for the acquisition of the
Henty Gold Mine in accordance with the Share Sale Agreement.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has had no significant
impact on the Consolidated Entity up to 30 June 2021, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent
on measures imposed by the Australian Government and other countries, such as maintaining social
distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
INFORMATION ON DIRECTORS
Stephen Boston (Non-Executive Chairman)
Mr Boston is the Principal of a Perth based private investment group specialising in the Australian resources
sector. Mr Boston previously worked as a stockbroker from 1984 to 1998 in Perth and Sydney. Mr Boston
holds a Bachelor of Arts from the University of Western Australia.
Memberships:
Senior Associate – Financial Services Institute of Australia
Special Responsibilities:
Chairman
Other Directorships:
None
Interests in securities:
156,984 Ordinary Shares & 19,015 Listed Options
5,606,572 Ordinary Shares & 439,462 Listed Options
Direct:
Indirect:
(held by Trapine Pty Ltd, Elshaw Pty Ltd and Merewether Pty Ltd,
companies in which Mr Boston holds a relevant interest)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Robin Scrimgeour (Non-Executive Director)
Mr Scrimgeour spent 17 years working for Credit Suisse in London, Tokyo, Hong Kong and Singapore. His
most recent experience has been providing structured hybrid financing for corporates in Asia for project
and acquisitions concentrated in the primary resources sector. Mr Scrimgeour’s previous experience was
as a senior equity derivatives trader involved in the pricing of complex structured equity derivative
instruments for both private and corporate clients focused in Asia. Mr Scrimgeour holds a Bachelor of
Economics with Honours from the University of Western Australia.
Special Responsibilities:
Member of audit committee
Other Directorships:
None
Interests in securities:
Direct:
Indirect:
Nil
5,435,017 Ordinary Shares & 531,074 Listed Options
Gary Schwab (Non-Executive Director)
Mr Schwab is a CPA with over 40 years of business experience, including 20 years in the resources sector.
Mr Schwab was previously Executive Director for a privately owned commodities group. In that role, Mr
Schwab was responsible for managing a long term wealth creation strategy (in conjunction with the
principal and owner) which culminated in the creation of what is currently one of Australia’s wealthiest
unlisted private commodities companies.
Special Responsibilities:
Chairman of audit committee
Other Directorships:
None
Interests in securities:
Direct:
Nil
Indirect: Nil
Bruce Kay (Non-Executive Director)
Mr Kay is a qualified geologist and former head of worldwide exploration for Newmont Mining
Corporation. He is a highly experienced geologist with a resource industry career spanning more than 30
years in international exploration, mine, geological, project evaluation and corporate operations. Mr Kay
retired from Newmont in 2003. Based in Denver, Colorado, USA, he managed worldwide exploration for
that Group. Prior to this appointment Mr Kay was group executive and Managing Director of exploration
at Normandy Mining Limited where he was responsible for managing its global exploration program from
1989 until 2002.
Special Responsibilities:
Technical Director
Other Directorships:
None
Interests in securities:
Direct:
Indirect: Nil
2,147,169 Ordinary Shares & 205,301 Listed Options
Information on Company Secretary
Frank Campagna B.Bus (Acc), CPA
Company Secretary of Catalyst Metals Limited since November 2009. Mr Campagna is a CPA with over
25 years’ experience as a Company Secretary, Financial Controller and Commercial Manager for listed
resources and industrial companies. He currently operates a corporate consultancy practice which
provides corporate secretarial services to both listed and unlisted companies.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
15
CATALYST METALS LIMITED
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
The number of meetings attended by each of the Directors of the Company during the financial year
was:
Board Meetings
Audit Committee
Meetings
Number
held and
entitled to
attend
Number
Attended
Number
held and
entitled
to attend
Number
Attended
8
8
8
8
8
8
7
8
-
-
-
-
-
-
-
-
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
ENVIRONMENTAL REGULATIONS
The Group is subject to significant environmental regulation in respect to its mineral exploration activities.
These obligations are regulated under relevant government authorities within Australia and overseas. The
Group is a party to exploration and mining licences. Generally, these licences and agreements specify
the environmental regulations applicable to exploration and mining operations in the respective
jurisdictions. The Group aims to ensure that it complies with the identified regulatory requirements in each
jurisdiction in which it operates.
Compliance with environmental obligations is monitored by the Board of Directors. No environmental
breaches have been notified to the Group by any government agency during the year ended 30 June
2021. The Group’s operations are subject to State and Federal laws and regulation concerning the
environment.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of 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.
SHARE OPTIONS
As at the date of this report, there were 7,881,996 (2020: 8,881,996) unissued ordinary shares under option.
There are 7,881,996 options exercisable at $2.45 each on or before 31 May 2022.
No person entitled to exercise the options has any right by virtue of the option to participate in any share
issue of the parent entity or any other corporation.
REMUNERATION REPORT (AUDITED)
This report sets out the current remuneration arrangements for Directors and executives of the Group. For
the purposes of this report, key management personnel is defined as those persons having authority and
responsibility for planning, directing and controlling major activities of the Group, including any Director
of the Group, and includes the executives in the consolidated entity receiving the highest remuneration.
The information provided in this report includes remuneration disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
16
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
Principles used to determine the nature and amount of remuneration
Directors and executives remuneration
Overall remuneration policies are determined by the Board and are adapted to reflect competitive
market and business conditions. Within this framework, the Board considers remuneration policies and
practices generally, and determines specific remuneration packages and other terms of employment for
any executive Directors and senior management. Executive remuneration and other terms of
employment are reviewed annually by the Board having regard to performance, relevant comparative
information and expert advice.
The Group’s remuneration policy for any Executive Directors and senior management is designed to
promote superior performance and long term commitment to the Group. Remuneration packages are
set at levels that are intended to attract and retain executives capable of managing the Group’s
operations.
Executive Directors and senior executives receive a base remuneration which is market related, together
with performance based remuneration linked to the achievement of pre-determined milestones and
targets.
The Group’s remuneration policies are designed to align executives’ remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles of the policy are:
-
-
reward reflects the competitive market in which the Group operates; and
individual reward should be linked to performance criteria.
The structure of remuneration packages for any Executive Directors and other senior executives
comprises:
- a fixed sum base salary plus superannuation benefits;
-
short term incentives through eligibility to participate in a performance bonus scheme if deemed
appropriate; and
long term incentives through any Executive Directors being eligible to participate in share option
schemes with the prior approval of shareholders.
-
Fixed and variable remuneration is established for each Executive Director by the Board. The objective
of short term incentives is to link achievement of the Group’s operational targets with the remuneration
received by executives charged with meeting those targets. The objective of long term incentives is to
reward executives in a manner which aligns this element of their remuneration with the creation of
shareholder wealth. Performance incentives may be offered to any Executive Directors and senior
management through the operation of performance bonus schemes. A performance bonus, based on
a percentage of annual salary, may be payable upon achievement of agreed operational milestones
and targets.
Non-Executive Directors’ remuneration
In accordance with current corporate governance practices, the structure for the remuneration of Non-
Executive Directors and senior executives is separate and distinct. Shareholders approve the maximum
fees payable to Non-Executive Directors, with the current approved limit being $400,000 per annum. The
Board is responsible for determining actual payments to Directors. Non-Executive Directors are entitled
to statutory superannuation benefits. The Board approves any consultancy arrangements for Non-
Executive Directors who provide services outside of and in addition to their duties as Non-Executive
Directors.
Non-Executive Directors may be entitled to participate in equity based remuneration schemes.
Shareholders must approve the framework for any equity based compensation schemes and if a
recommendation is made for a Director to participate in an equity scheme, that participation must be
specifically approved by the shareholders.
All Directors are entitled to have premiums on indemnity insurance paid by the Group.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
17
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
At the 2020 AGM, the majority of the votes received supported the adoption of the remuneration report
for the year ended 30 June 2020. The company did not receive any specific feedback at the AGM
regarding its remuneration practices.
Details of Remuneration for Year Ended 30 June 2021
Details of the remuneration for each Director and key management personnel (as defined in AASB 124
Related Party Disclosures) of the Group during the year are set out in the following tables.
2021
Name
Short-term
employment benefits
Cash salary
and fees
Other
Post-
employment
benefits
Superannuation
Share-based
payments
Shares
Total
Non-Executive Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Management
B Robertson - CEO
D Alford – GM Henty
Total key management
personnel compensation
216,800
81,030
121,638
212,677
243,441
125,000
1,000,586
-
-
-
-
-
-
-
20,677
-
11,586
24,999
23,252
11,875
92,389
-
-
-
-
-
-
-
237,477
81,030
133,224
237,676
266,693
136,875
1,092,975
No performance based remuneration was paid to the Directors or Management during the year.
In 2021, Mr Kay received $74,000 per annum in Directors’ fees and was paid extra fees for managing the
Company’s exploration programmes at the Four Eagles Gold Project, Tandarra Gold Project, Macorna
Gold Project, Boort Gold Project, Drummartin Gold Project and Golden Camel Gold Project. The costs
incurred in respect of the joint ventures were partially reimbursed by the joint venture partners as part of
its earn in expenditure commitments. Furthermore in 2021, Mr Boston received $80,000 per annum in
Directors’ fees and was paid extra consulting fees for managing the Company and Mr Schwab received
$74,000 per annum in Directors’ fees and was paid extra consulting fees for services provided to the
Company outside his duties as a director.
Mr Robertson commenced as the CEO of the Company on 4 January 2021, prior to that he was employed
by the Company as a consultant to provide advice on the acquisition of the Henty mine. On 23 August
2021, Mr Robertson tendered his resignation as CEO and provided 3 months’ notice. Mr Alford is the
General Manager Operations of the Henty Mine and commenced employment with Henty Gold Pty Ltd
on 1 February 2021.
2020
Name
Short-term
employment benefits
Cash salary
and fees
Other
Post-
employment
benefits
Superannuation
Share-based
payments
Shares
Total
Non-Executive Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Total key management
personnel compensation
179,600
81,030
93,200
181,968
535,798
-
-
-
-
-
17,062
-
8,854
17,287
43,203
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
-
-
-
-
-
196,662
81,030
102,054
199,255
579,001
18
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
In 2020, Mr Kay received $74,000 per annum in Directors’ fees and was paid extra fees for managing the
Company’s exploration programmes at the Four Eagles Gold Project, Tandarra Gold Project, Macorna
Gold Project, Boort Gold Project, Drummartin Gold Project and Golden Camel Gold Project. The costs
incurred in respect of the joint ventures were partially reimbursed by the joint venture partners as part of
its earn in expenditure commitments. Furthermore in 2020, Mr Boston received $80,000 per annum in
Directors’ fees and was paid extra consulting fees for managing the Company and Mr Schwab received
$74,000 per annum in Directors’ fees and was paid extra consulting fees for services provided to the
Company outside his duties as a director.
Letters of appointment have been entered into with each Director of the Company. No duration of
appointment or termination benefits are applicable. Effective from 1 July 2019, Non-executive Directors
receive remuneration of $74,000 per annum plus statutory superannuation, whilst the Chairman receives
remuneration of $80,000 per annum plus statutory superannuation. Directors are permitted to salary
sacrifice their fees.
Mr Bruce Robertson was employed as Chief Executive Officer of Catalyst on 4 January 2021. The key
terms of Mr Robertson’s employment is a base salary of $300,000 per annum with statutory
superannuation. Mr Robertson and the Company are required to provide three months notice for
termination, unless the termination is for cause and then no notice period is required. Mr Robertson is
entitled to a six month redundance in there is a material change in his role or responsibilities. Mr Robertson
is also entitled to receive the following options, which to date have not yet been granted:
•
•
•
•
250,000 exercisable at higher of $3 or 15% premium to the 10 day VWAP for the period 4 – 15
January 2021, expiring in 4 years and vesting 6 months after the commencement date
250,000 exercisable at $0.50 above the initial exercise price, expiring in 4.5 years and vesting 12
months after the commencement date
250,000 exercisable at $1.00 above the initial exercise price, expiring in 5 years and vesting 18
months after the commencement date
250,000 exercisable at $1.50 above the initial exercise price, expiring in 5.5 years and vesting 24
months after the commencement date
Should Mr Robertson cease employment with the Company then will only be entitled to retain options
that have vested during the period of employment.
Mr Dion Alford was employed as General Manager of the Henty Gold Mine on 1 February 2021. The key
terms of Mr Alfords employment is a base salary of $310,000 per annum with statutory superannuation. Mr
Alford receives company housing and a motor vehicle. Mr Alford and the Company are required to
provide three months notice for termination, unless the termination is for cause and then no notice period
is required. In the event of redundance then Mr Alford is entitled to redundance pay in accordance with
the National Employment Standards.
SHARE-BASED COMPENSATION
Shares
No shares were issued as compensation during the financial year (2020: Nil).
Options
Options over shares in the Company are granted under the Catalyst Metals Limited Employee Incentive
Plan (“Incentive Plan”). The purpose of the Incentive Plan is to provide employees, Directors, executive
officers and consultants with an opportunity, in the form of options or other incentives, to subscribe for
ordinary shares in the Group. The Directors consider the Incentive Plan enables the Group to retain and
attract skilled and experienced employees, board members and executive officers and provide them
with the motivation to contribute to the growth and future success of the Group.
During the financial year no options were issued as compensation (2020: Nil).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
19
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
Performance Rights
Performance Rights over shares in the Company are granted under the Catalyst Metals Limited
Performance Rights Plan (“Performance Rights Plan”). The objective of the Performance Rights Plan is to
attract, motivate and retain employees, Directors and consultants (“Eligible Participants”) of the
Company by providing performance related incentives and rewards. Subject to certain criteria being
satisfied, the Board may offer Eligible Participants performance rights which upon vesting will entitle the
holder to one ordinary fully paid share in the Company for each performance right held.
During the financial year no performance rights were issued as compensation (2020: Nil).
SHARE AND OPTION HOLDINGS
Option holdings
The number of options over ordinary shares in the Company held during the year by each Director of the
Company and other key management personnel, including their personally related parties, are set out
below:
2021 – Options Holdings
Name
S Boston
R Scrimgeour
G Schwab
B Kay
B Robertson
D Alford
Balance at
beginning of
year
Granted as
compensation
Exercised
Other
changes
Balance at
end of
year
Vested and
exercisable
458,477
531,074
-
205,301
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,145
-
458,477
531,074
-
205,301
31,145
-
458,477
531,074
-
205,301
31,145
-
Ordinary Shares
The number of ordinary shares in the Group held during the financial year by each Director and other key
management personnel of the Group, including their personally related parties, are set out below. There
were no shares granted during the year as compensation.
2021 – Ordinary Share Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
B Robertson
D Alford
Balance at
beginning of year
Purchased
Other Changes
Balance at
end of year
5,724,172
5,310,732
-
2,147,169
-
-
39,384
40,285
-
14,286
-
-
-
-
-
(14,286)
397,160
-
5,763,556
5,351,017
-
2,147,169
397,160
-
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL AND THEIR RELATED PARTIES
Mr Boston is also a Director of Raisemetrex Pty Ltd which was paid $60,000 (2020: $74,734) by the Company
to provide an online platform for the administration of capital raisings and electronic communications
with shareholders.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
20
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
CONSEQUENCES OF PERFORMANCE ON SHAREHOLDER WEALTH
In considering the Group performance and benefits for shareholder wealth, the factors that are
considered to affect total shareholder return are summarised below:
2021
2020
2019
2018
2017
Net profit (loss) for the period
(102,441)
(1,746,832)
(1,686,017)
(4,241,647)
(1,124,909)
Share price at financial year
end ($)
Basic profit (loss) per share
(cents per share)
END OF REMUNERATION REPORT
1.95
2.75
(0.1)
(2.2)
1.96
(2.3)
1.50
(6.5)
0.50
(2.0)
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Group has entered into indemnity agreements with each of the Directors and officers of the Group.
Under the agreements, the Group will indemnify those officers against any claim or for any expenses or
costs which may arise as a result of work performed in their respective capacities as officers of the Group
or any related entities.
INDEMNIFICATION AND INSURANCE OF AUDITOR
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the
auditor of the Group or any related party.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to 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 part of those proceedings.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Board of Directors, in accordance with advice from the audit committee, is satisfied that the provision
of non-audit services during the year is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The Directors are satisfied that any non-audit services did
not compromise the external auditor’s independence for the following reasons:
• all non-audit services are reviewed and approved by the audit committee prior to commencement
•
to ensure they do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
No fees for non-audit services were paid/payable to the external auditors during the year ended
30 June 2021.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
21
CATALYST METALS LIMITED
DIRECTORS’ REPORT
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the company who are former partners of RSM Australia Partners.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and
immediately follows the Directors’ Report.
This report is made in accordance with a resolution of the Directors, pursuant to section 298(2)(a) of the
Corporations Act 2021.
Stephen Boston
Chairman
Perth, Western Australia
30 September 2021
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
22
Level 32, Exchange Tower, 2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
RSM Australia Partners
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Catalyst Metals 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:
(i)
The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
Any applicable code of professional conduct in relation to the audit.
David Wall
Partner
RSM Australia Partners
Perth, Western Australia
30 September 2021
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Total Current Assets
Non-Current Assets
Receivables
Property, plant and equipment
Exploration and evaluation expenditure
Mining development assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Other - advances
Lease liabilities
Interest bearing liabilities
Provisions
Deferred consideration payable
Contingent consideration payable
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Deferred consideration payable
Provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed equity
Share-based payments reserve
Accumulated losses
Note
2021
$
2020
$
9
10
11
10
12
13
14
15
16
17
18
19
26
26
17
26
19
33,518,541
18,335,520
2,816,154
3,898,595
262,964
-
40,233,290
18,598,484
10,000
5,814,969
30,001,347
6,505,722
42,332,038
10,000
96,867
5,547,838
-
5,654,705
82,565,328
24,253,189
11,640,073
215,526
224,794
802,595
604,350
6,000,000
5,000,000
24,487,338
220,062
800,000
2,912,677
3,932,739
1,036,436
531,634
-
-
-
-
-
1,568,070
-
-
-
28,420,077
1,568,070
54,145,251
22,685,119
20
21(a)
21(b)
72,912,682
41,350,109
372,972
372,972
(19,140,403)
(19,037,962)
TOTAL EQUITY
54,145,251
22,685,119
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying
notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
24
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2021
Revenue from continuing operations
Other revenue
Interest revenue
Expenses
Note
2021
$
2020
$
4
5
28,508,849
781,077
88,535
-
940,167
97,833
Mining and processing costs
Depreciation and amortisation relating to gold sales
Royalties
(13,738,002)
(1,663,872)
(2,176,654)
-
-
-
Administration, corporate, occupancy and travel costs
(2,125,466)
(806,780)
Personnel
Depreciation
Exploration and evaluation expenditure
Loss before income tax expense from continuing operations
Income tax benefit
Loss after income tax from continuing operations
Other comprehensive income
Total comprehensive loss for the year
Total comprehensive loss attributable to
members of the Parent entity
Earnings per share for loss attributable to the owners of Catalyst
Metals Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
(4,808,586)
(612,153)
(744,327)
(20,097)
(4,223,995)
(1,345,802)
(102,441)
(1,746,832)
-
-
(102,441)
(1,746,832)
-
-
(102,441)
(1,746,832)
(102,441)
(1,746,832)
(0.1)
(0.1)
(2.2)
(2.2)
6
8
7
7
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
25
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2021
Contributed
Equity
Accumulated
losses
$
$
Share-based
payments
reserve
$
Total
$
Balance at 30 June 2019
33,301,230
(17,291,130)
372,972
16,383,072
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Issue of shares
Issue of options
Share issue expenses
-
(1,746,832)
7,892,645
157,785
(1,551)
-
-
-
-
-
-
-
(1,746,832)
7,892,645
157,785
(1,551)
Balance at 30 June 2020
41,350,109
(19,037,962)
372,972
22,685,119
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Issue of shares
Issue of options
Share issue expenses
Balance at 30 June 2021
-
(102,441)
32,281,780
-
(719,207)
72,912,682
-
-
-
(19,140,403)
372,972
54,145,251
-
-
-
-
(102,441)
32,281,780
-
(719,207)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying
notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
26
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2021
Cash Flows from Operating Activities
Receipts from suppliers
Payments for exploration and evaluation
Note
2021
$
2020
$
29,825,353
-
(4,223,995)
(1,345,802)
Payments to suppliers, contractors and employees
(16,917,625)
(1,949,357)
Research and development tax offsets received
Other income
Interest received
438,919
342,158
88,535
225,620
714,547
97,833
Net cash flows provided/(used) in operating activities
22
9,553,345
(2,257,159)
Cash Flows from Investing Activities
Payment for purchase of business net of cash acquired
(5,444,682)
-
Payments for property, plant and equipment
Payment for mine development assets
Payments for exploration and evaluation
(3,429,024)
(109,022)
(4,461,057)
-
(5,884,621)
(3,591,357)
Net cash flows used in investing activities
(19,219,384)
(3,700,379)
Cash Flows from Financing Activities
Proceeds from issue of shares and other equity securities
25,081,781
8,050,430
Share issue expenses
Proceeds from borrowings
(719,208)
802,595
(1,551)
-
Joint venture exploration advances received
Joint venture exploration advances expended
13
13
5,614,506
3,820,441
(5,930,614)
(3,473,715)
Net cash flows provided from financing activities
24,849,060
8,395,605
Net increase in cash and cash equivalents
15,183,021
2,438,067
Cash and cash equivalents at the beginning of the
financial year
18,335,520
15,897,453
Cash and cash equivalents at the end of the financial year
9
33,518,541
18,335,520
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
27
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
(a) New, revised or amending Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for
the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory
have not been early adopted.
(b)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial
statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair
value through profit or loss, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
(c) Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Consolidated
Entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
(d)
(e)
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in note 32.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Catalyst
Metals Limited ('company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the
year then ended. Catalyst Metal Limited and its subsidiaries together are referred to in these financial
statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated
entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power to direct
the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change
in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-
controlling interest acquired is recognised directly in equity attributable to the parent.
Intercompany transactions, balances and transactions between entities in the consolidated entity are
eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the consolidated entity.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
28
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f)
(g)
(h)
(i)
(j)
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.
Revenue
Revenue from contracts with customers is recognised based on the transfer of promised goods or
services to customers with an amount that reflects the consideration to which the Group expects to
be entitled to in exchange for those goods or services.
Sale of gold and other metals
Sale of gold and other metals is recognised at the point of sale, which is where the customer has taken
delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales
contract. Amounts disclosed as revenue are net of sales returns and trade discounts.
Interest
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable
to the financial assets.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Impairment
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell
and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value
over its recoverable amount is expensed to the income statement.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Cash and cash equivalents
For the purpose of the cash flow statement, cash includes cash on hand and at call deposits with
banks or financial institutions and investments in money market instruments with less than 30 days to
maturity.
Trade and other receivables
Trade receivables, loans, and other receivables are recognised at amortised cost, less any
allowance for expected credit losses.
(k) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the Consolidated Entity's normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Consolidated Entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the
liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
29
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l)
Financial instruments
Recognition and Initial Measurement
Financial assets are measured at amortised cost if they are held within a business model whose
objective is to hold assets in order to collect contractual cash flows which arise on specified dates and
are solely principal and interest. All other financial instrument assets are classified and measured at fair
value through profit or loss unless the entity makes an irrevocable election on initial recognition to
present gains and losses on equity instruments (that are not held-for-trading) in other comprehensive
income.
Financial assets may be impaired based on an expected credit loss model to recognise an allowance.
Such impairment is measured with a 12-month expected credit loss model unless the credit risk on a
financial instrument has increased significantly since initial recognition in which case the lifetime
expected credit loss model is adopted
For financial liabilities, the portion of the change in fair value that relates to the Group’s credit risk is
presented in other comprehensive income.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques
are applied to determine the fair value for all unlisted securities, including recent arm’s length
transactions, reference to similar instruments and option pricing models.
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged
decline in the value of the instrument is considered to determine whether an impairment has arisen.
Impairment losses are recognised in the income statement.
(m)
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. Each area of interest is limited to a size related to a known
or probable mineral resource capable of supporting a mining operation.
Exploration expenditure for each area of interest is written off as incurred, except that it may be carried
forward provided that such costs are expected to be recouped through successful development and
exploitation of the area of interest or, alternatively, by its sale. The Group performs impairment testing
when facts and circumstances suggest the carrying amount has been impaired. If it was determined
that the asset was impaired it would be immediately written off to the income statement.
Expenditure is not carried forward in respect of any area of interest unless the Group’s right of tenure
to that area of interest is current. Expenditures incurred before the Group has obtained legal rights to
explore a specific area is expensed as incurred. Amortisation is not charged on areas under
development, pending commencement of production.
(n)
(o)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days
of recognition.
Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the balance sheet date.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
30
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p)
Employee entitlements
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service
leave expected to be settled within 12 months of the reporting date are recognised in current liabilities
in respect of employees’ services up to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of
the reporting date are recognised in non-current liabilities, provided there is an unconditional right to
defer settlement of the liability. The liability is measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using
the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the reporting date on national government bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they
are incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the
exchange of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or Black-Scholes option pricing model that takes
into account the exercise price, the term of the option, the impact of dilution, the share price at grant
date and expected price volatility of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment.
No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase
in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the
grant date fair value of the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit or loss for the period is
the cumulative amount calculated at each reporting date less amounts already recognised in
previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined
by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the
terms and conditions on which the award was granted. The cumulative charge to profit or loss until
settlement of the liability is calculated as follows:
• during the vesting period, the liability at each reporting date is the fair value of the award at that
•
date multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of
the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions
is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has
been met, provided all other conditions are satisfied.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
31
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
(p)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Employee entitlements (continued)
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification
has not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the
date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the vesting period, any remaining expense
for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and
any remaining expense is recognised immediately. If a new replacement award is substituted for the
cancelled award, the cancelled and new award is treated as if they were a modification.
(q)
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income
based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred
tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment
recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected
to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are
enacted or substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business combination and that, at the time of
the transaction, affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates
or joint ventures, and the timing of the reversal can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each
reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable
that future taxable profits will be available for the carrying amount to be recovered. Previously
unrecognised deferred tax assets are recognised to the extent that it is probable that there are future
taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset
current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities;
and they relate to the same taxable authority on either the same taxable entity or different taxable
entities which intend to settle simultaneously.
Catalyst Metals Ltd and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the
tax consolidated group continue to account for their own current and deferred tax amounts. The tax
consolidated group has applied the ‘separate taxpayer within group’ approach in determining the
appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current
tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax
credits assumed from each subsidiary in the tax consolidated group.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
32
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(q)
(r)
Income tax (continued)
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are
recognised as amounts receivable from or payable to other entities in the tax consolidated group.
The tax funding arrangement ensures that the intercompany charge equals the current tax liability or
benefit of each tax consolidated group member, resulting in neither a contribution by the head entity
to the subsidiaries nor a distribution by the subsidiaries to the head entity.
Earnings per share
Basic earnings per share is determined by dividing the profit from ordinary activities after related
income tax expense by the weighted average number of ordinary shares outstanding during the
financial year.
(s) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
Cash flows are included in the cash flow statement on a gross basis and the GST component of cash
flows arising from investing and financial activities, which are recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
(t)
Property, Plant and Equipment
Property, plant and equipment are measured on the cost basis and therefore carried at cost less
accumulated depreciation and any accumulated impairment. In the event the carrying amount of
property, plant and equipment is greater than the estimated recoverable amount, the carrying
amount is written down immediately to the estimated recoverable amount and impairment losses are
recognised in profit or loss. A formal assessment of recoverable amount is made when impairment
indicators are present.
The carrying amount of property, plant and equipment is reviewed annually by Directors to ensure it
is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on
the basis of the expected net cash flows that will be received from the asset’s employment and
subsequent disposal. The expected net cash flows have been discounted to their present values in
determining recoverable amounts.
Depreciation
The depreciable amount of all fixed assets, but excluding freehold land, is depreciated on a straight-
line basis over the asset’s useful life to the consolidated entity commencing from the time the asset is
held ready for use.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
33
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(t)
Property, Plant and Equipment (continued)
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Land and buildings
Plant and equipment
Depreciation Rate
0 – 8%
11 - 33.33%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the statement of comprehensive income.
(u)
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.
(v)
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement. Investments in joint ventures are accounted for using
the equity method. Under the equity method, the share of the profits or losses of the joint venture is
recognised in profit or loss and the share of the movements in equity is recognised in other
comprehensive income. Investments in joint ventures are carried in the statement of financial position
at cost plus post-acquisition changes in the consolidated entity's share of net assets of the joint venture.
Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither
amortised nor individually tested for impairment. Income earned from joint venture entities reduce the
carrying amount of the investment.
(w)
Business Combinations
The acquisition method of accounting is used to account for business combinations regardless of
whether equity instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred,
equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and
the amount of any non-controlling interest in the acquiree. For each business combination, the non-
controlling interest in the acquiree is measured at either fair value or at the proportionate share of the
acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and
liabilities assumed for appropriate classification and designation in accordance with the contractual
terms, economic conditions, the consolidated entity's operating or accounting policies and other
pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its
previously held equity interest in the acquiree at the acquisition-date fair value and the difference
between the fair value and the previous carrying amount is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair
value. Subsequent changes in the fair value of the contingent consideration classified as an asset or
liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured
and its subsequent settlement is accounted for within equity.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
34
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w)
Business Combinations (continued)
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any
non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair
value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration
transferred and the pre-existing fair value is less than the fair value of the identifiable net assets
acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in
profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification
and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the
consideration transferred and the acquirer's previously held equity interest in the acquirer.
(x)
(y)
(z)
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively
adjusts the provisional amounts recognised and also recognises additional assets or liabilities during
the measurement period, based on new information obtained about the facts and circumstances
that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months
from the date of the acquisition or (ii) when the acquirer receives all the information possible to
determine fair value.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the consolidated entity for the annual
reporting period ended 30 June 2021. The consolidated entity has not yet assessed the impact of these
new or amended Accounting Standards and Interpretations.
Foreign currency translation
The financial statements are presented in Australian dollars, which is the Group’s functional and
presentation currency.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the
liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(aa)
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The
value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-
tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that
do not have independent cash flows are grouped together to form a cash-generating unit.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
35
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ab)
Inventories
Inventories are stated at the lower of cost and net realisable value on a 'weighted average' basis.
Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an
appropriate proportion of variable and fixed overhead expenditure based on normal operating
capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of
purchased inventory are determined after deducting rebates and discounts received or receivable
Cost is determined on the following basis:
(a) Gold and other metals on hand is valued on an average total production cost method
(b) Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage
(c) A proportion of related depreciation and amortisation charge is included in the cost of inventory
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and
delivery costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.
(ac) Mining assets
Capitalised mining development costs include expenditures incurred to develop new ore bodies to
define further mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain
production. Mining development also includes costs transferred from exploration and evaluation
phase once production commences in the area of interest.
Amortisation of mining development is computed by the units of production basis over the estimated
proved and probable reserves. Proved and probable mineral reserves reflect estimated quantities of
economically recoverable reserves which can be recovered in the future from known mineral
deposits. These reserves are amortised from the date on which production commences. The
amortisation is calculated from recoverable proven and probable reserves and a predetermined
percentage of the recoverable measured, indicated and inferred resource. This percentage is
reviewed annually.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
36
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
2.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts in the financial statements. Management
continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities,
revenue and expenses. Management bases its judgements, estimates and assumptions on historical
experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and
estimates will seldom equal the related actual results. The judgements, estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
(refer to the respective notes) within the next financial year are discussed below.
Exploration and evaluation costs
The Group's accounting policy for exploration and evaluation is set out in note 1(l). The application of
this policy necessarily requires management to make certain estimates and assumptions as to future
events and circumstances, in particular the assessment of whether economic quantities of reserves
may be found. Any such estimates and assumptions may change as new information becomes
available.
Unit-of-production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets
which results in a depreciation/amortisation charge proportionate to the depletion of the anticipated
remaining life of mine production. Each asset’s economic life, which is assessed annually, has due
regard for both its physical life limitations and to present assessments of economically recoverable
mine plan of the mine property at which it is located. These calculations require the use of estimates
and assumptions.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19)
pandemic has had, or may have, on the consolidated entity based on known information. This
consideration extends to the nature of the supply chain, staffing and geographic regions in which the
consolidated entity operates. Other than as addressed in specific notes, there does not currently
appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the consolidated entity
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months
from the reporting date are recognised and measured at the present value of the estimated future
cash flows to be made in respect of all employees at the reporting date. In determining the present
value of the liability, estimates of attrition rates and pay increases through promotion and inflation
have been taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land
explored or mined. The consolidated entity's mining and exploration activities are subject to various
laws and regulations governing the protection of the environment. The consolidated entity recognises
management's best estimate for assets retirement obligations and site rehabilitations 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
37
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
3.
Operating segments
Identification of reportable operating segments
The consolidated entity is organised into two operating segments, being mining and exploration
operations. These operating segments are based on the internal reports that are reviewed and used
by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in
assessing performance and in determining the allocation of resources.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The
accounting policies adopted for internal reporting to the CODM are consistent with those adopted in
the financial statements.
The information reported to the CODM is on a monthly basis.
Types of products and services
The principal products and services of these operating segments are the mining and exploration
operations in Australia.
Major customers
During the year ended 30 June 2021 approximately $26.3 million (2020: nil) of the consolidated entity's
external revenue was derived from sales to a major Australian gold exporter.
Geographical information
The consolidated entity is one geographical segment, Australia.
Operating segment information by activity
Exploration
Mining Operations
Sales to external customers
Non-current assets
2021
$
2020
$
2021
$
2020
$
-
28,508,849
28,508,849
-
-
-
11,543,968
30,778,070
5,644,705
-
42,322,038
5,644,705
4.
Revenue
From Continuing Operations
Sale of gold and other metals
Revenue is recorded once goods are transferred at a point in time.
5.
Other income
Research and development tax offset recovery
Government grants
Administration recovery fees
Other
2021
$
2020
$
28,508,849
28,508,849
-
-
438,919
67,500
268,069
6,589
781,077
225,660
337,200
377,307
-
940,167
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
38
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
6.
Expenses
Loss before income tax includes the following specific
expenses:
Depreciation
Directors’ fees
2021
$
2020
$
744,327
478,603
20,097
330,690
Exploration and evaluation expenditure (refer note 1(l))
4,223,995
1,345,802
7.
Earnings per Share
2021
No. of Shares
2020
No. of Shares
Weighted average number of ordinary shares for basic and
diluted earnings per share
89,771,426
80,961,276
8.
Income tax
Loss before tax
Prima facie tax on operating loss before income tax at 26%
(2020: 27.5%)
Tax effect of:
- non deductible items
Deferred tax asset not brought to account at the reporting
date as realisation of the benefit is not probable
Income tax attributable to operating loss
Unrecognised deferred tax
2021
$
2020
$
(102,441)
(1,746,832)
26,635
480,379
172,416
(124,415)
(199,051)
(355,964)
-
-
The Group has $21,403,064 (2020: $17,626,456) tax losses arising in Australia that are available
indefinitely for offset against future profit of the companies in which the losses arose.
The potential deferred tax asset of $5,564,797 (2020: $4,847,276), arising from tax losses and temporary
differences (as disclosed above), has not been recognised as an asset because recovery of tax losses
and temporary differences is not considered probable.
The potential deferred tax asset will only be obtained if:
-
-
-
the relevant Group derives future assessable income of a nature and an amount sufficient
to enable the benefit to be realised;
the relevant Group continues to comply with the conditions for deductibility imposed by tax
legislation; and
no changes in tax legislation adversely affect the relevant Group in realising the benefit from
the deduction for the losses.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
39
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
9.
Cash and cash equivalents
Cash at bank
Cash on deposit
2021
$
2020
$
30,408,541
18,225,520
3,110,000
110,000
33,518,541
18,335,520
The cash at bank includes $510,301 (2020: $1,238,656) held in trust by Catalyst’s subsidiaries, Kite
Gold Pty Ltd (advanced by Gold Exploration Victoria Pty Ltd as funds provided in advance for
exploration expenditure on the Four Eagles Gold Project joint venture and Boort Project joint
venture) and Tandarra Management Pty Ltd (advanced by Navarre Minerals Limited as funds
provided in advance for exploration expenditure on the Tandarra Gold Project joint venture).
10.
Trade and other receivables
Current
Trade debtors
GST receivable
Prepayments
Other
Non-current
Environmental Rehabilitation Bond
2021
$
2020
$
344,257
187,846
1,481,653
802,398
2,816,154
10,000
10,000
-
154,377
-
108,587
262,964
10,000
10,000
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate
their fair value.
11.
Inventories
Gold stocks
Stock on hand – parts and consumables
12.
Property, plant and equipment
Land and buildings – at cost
Less: accumulated depreciation
Plant and equipment – at cost
Less: accumulated depreciation
2021
$
2020
$
1,532,162
2,366,433
3,898,595
-
-
-
2021
$
2020
$
278,954
(15,362)
263,592
5,956,591
(405,214)
5,551,377
-
-
-
152,192
(55,325)
96,867
5,814,969
96,867
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
40
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
12.
Property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous
financial year are set out below
Balance at 1 July 2019
Additions
Depreciation expense
Balance at 30 June 2020
Additions
Land and
Buildings
$
-
-
-
-
-
Additions through business combination
Depreciation expense
278,954
(15,362)
Plant and
equipment
$
7,942
109,022
(20,097)
96,867
3,429,024
2,375,375
(349,889)
Total
$
7,942
109,022
(20,097)
96,867
3,429,024
2,654,329
(365,251)
Balance at 30 June 2021
263,592
5,551,377
5,814,969
13.
Exploration and evaluation expenditure
Opening balance
Additions
Additions through business combination
Closing balance
Mining rights
Opening balance
Additions through business combination
Depreciation expense
Closing balance
2021
$
2020
$
5,547,838
5,884,623
17,810,851
29,243,312
1,956,481
3,591,357
-
5,547,838
-
1,137,111
(379,076)
758,035
-
-
-
-
30,001,347
5,547,838
The ultimate recoupment of balances carried forward in relation to areas of interest still in the
exploration or evaluation phase is dependent on successful development, and commercial
exploitation, or alternatively sale of the respective areas. The Group conducts impairment testing
when indicators of impairment are present at the reporting date.
14.
Mining Development Assets
Capitalised mine development
Opening Balance
Additions
Additions through business combination
Amortisation Expenses
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
2021
$
2020
$
6,505,722
6,505,722
-
4,461,057
3,708,537
(1,663,872)
6,505,722
-
-
-
-
-
-
-
41
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
15.
Trade and other payables
Current Payables
Trade creditors
Accruals
2021
$
2020
$
5,312,075
6,327,998
588,966
447,470
11,640,073
1,036,436
Included in the current payables is an aggregate amount of $1,203,467 (2020: $257,511) incurred
in relation to the Four Eagles Gold Project and Tandarra Gold Project which is payable by Gold
Exploration Victoria Pty Ltd and Navarre Mineral Limited.
Due to the short term nature of these payables, their carrying value is assumed to approximate
their fair value. Trade and other payables are non-interest bearing and normally settled on 30-
day terms.
16.
Advances
Opening Balance of Advance from Joint Venture Partners
531,634
184,908
Advances received from Joint Venture Partners
Exploration expenditure
5,614,506
3,820,441
(5,930,614)
(3,473,715)
Closing Balance of Advance/(Receivable) from Joint
Venture Partners
215,526
215,526
531,634
531,634
2021
$
2020
$
The (receivable)/advance from Joint Venture Partners relates to monies (receivable)/advanced
(from)/to Kite Gold Pty Ltd, Tandarra Management Pty Ltd, Kite Operations Pty Ltd and Silkfield
Holdings Pty Ltd for their contribution to exploration expenditure on the Four Eagles, Tandarra,
Boort and Drummartin Gold Projects.
17.
Lease liabilities
Current
Non - current
18.
Interest bearing liabilities
Opening balance
Additions
Closing balances
2021
$
224,794
220,062
444,856
2021
$
-
802,595
802,595
2020
$
-
-
-
2020
$
-
-
-
Interest bearing liabilities relate to insurance premium funding which is repayable by October 2021.
An interest rate of 2.7% applies.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
42
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
19.
Provisions
Current
Non - current
Provision for employee benefits
Provision for rehabilitation
2021
$
2020
$
604,350
2,912,677
3,517,027
604,350
2,912,677
3,517,027
-
-
-
-
-
-
Rehabilitation
The provision represents the present value of estimated costs for future rehabilitation of land
explored or mined by the consolidated entity at the end of the exploration or mining activity.
Note
2021
Number
2021
$
2020
Number
2020
$
20.
Contributed Equity
(a) Share capital
Ordinary shares
Fully paid
20(c)
98,295,723 72,754,897
82,399,646 41,192,324
(b) Other equity securities
Options – Listed
Options – Unlisted
Total contributed equity
20(d)
25
7,881,996
157,785
7,882,048
157,785
-
-
1,000,000
-
72,912,682
41,350,109
(c) Movements in Ordinary
Shares
Details
Balance at 30 June 2019
Issue of shares –
Exercise of listed options
Issue of shares –
Exercise of unlisted options
Issue of shares –
Share Placement
Capital raising expenses
Balance at 30 June 2020
Issue of shares –
Exercise of listed options
Issue of shares -
Number of
Shares
78,892,444
Issue
Price
$
33,301,230
7,202
$2.45
17,645
3,500,000
$2.25
7,875,000
-
-
(1,551)
82,399,646
41,192,324
52
$2.45
127
Exercise of unlisted options
1,000,000
$1.00
1,000,000
Issue of shares –
Share Placement
Capital raising expenses
Balance at 30 June 2021
14,896,025
$2.10
31,281,653
-
-
(719,207)
98,295,723
72,754,897
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
43
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
20.
Contributed Equity (continued)
(d) Movements in Options -
LIsted
Details
Balance at 30 June 2019
Issue of options –
Entitlement offer
Exercise of options
Balance at 30 June 2020
Issue of options –
Entitlement offer
Exercise of options
Number of
Options
Issue
Price
-
7,889,250
(7,202)
7,882,048
-
(52)
$
-
$0.02
157,785
-
-
-
-
157,785
-
-
Balance at 30 June 2021
7,881,996
157,785
(e) Ordinary shares
On a show of hands, every member present in person or by proxy shall have one vote and,
upon a poll, each share shall have one vote.
(f) Capital risk management
When managing capital, management’s objective is to ensure the entity continues as a going
concern as well as to maintain optimal returns to shareholders and benefits for other
stakeholders. Management also aims to maintain a capital structure that ensures the lowest
cost of capital available to the entity.
In order to maintain or adjust the capital structure, the entity may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares, enter into joint
ventures or sell assets.
The entity does not have a defined share buy-back plan.
There is no current intention to incur debt funding on behalf of the Group as on-going
exploration expenditure will be funded via cash reserves, equity or joint ventures with other
companies. The Group is not subject to any externally imposed capital requirements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
44
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
20.
Contributed Equity (continued)
(g) Details of subsidiaries
Details of the Group’s subsidiaries at 30 June 2021 are:
Name of subsidiary
Principal activity
Place of
incorporation
and
operation
Proportion of ownership interest
and voting power held
2021
2020
Silkfield Holdings Pty Ltd Mineral Exploration
Australia
Kite Gold Pty Ltd
Mineral Exploration
Australia
Kite Operations Pty Ltd Mineral Exploration
Australia
100%
100%
100%
100%
100%
100%
Tandarra
Management Pty Ltd
Mineral Exploration
Australia
100%
100%
Nomad Metals Pty Ltd
Mineral Exploration
Australia
Unity Mining Pty Ltd
Mineral Exploration
Australia
100%
100%
Henty Gold Pty Ltd
Gold Ore
Production
Australia
100%
100%
-
-
Four Eagles JV Property
Pty Ltd
Property
Australia
50%
21.
Reserves & Accumulated Losses
(a)
Reserves
Share-based payments reserve
Balance at the beginning of the year
Movements during the year
Balance at the end of the year
2021
$
2020
$
372,972
372,972
-
-
372,972
372,972
The share-based payments reserve records the value of share options issued by the
Group.
(b)
Accumulated losses
Balance at the beginning of the year
(19,037,962)
(17,291,130)
Loss for the year
Balance at the end of the year
(102,441)
(1,746,832)
(19,140,403)
(19,037,962)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
45
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
22.
Notes to the Cash Flow Statement
(a) Reconciliation of net cash used in operating activities
to operating loss after income tax
2021
$
2020
$
Operating loss after tax
(102,441)
(1,746,832)
Add non-cash items:
Depreciation
Depreciation and amortisation relating to gold sales
744,327
1,663,872
20,097
Changes in net assets and liabilities
(Increase)/decrease in receivables
(Increase)/decrease in inventory
(Decrease)/increase in other assets
(Decrease)/increase in payables
1,316,506
(433,310)
(2,128,689)
8,493,080
(140,292)
-
(390,132)
-
Net cash provided/(used) in operating activities
9,553,345
(2,257,159)
(b) Non-cash financing and investing activities
The Group did not have any non-cash financing or investing activities during the year (2020: Nil).
23.
Key Management Personnel Compensation
(a) Directors and Specified Executives
The names and positions held by key management personnel in office at any time during the
year are:
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Management
B Robertson
D Alford
Non-Executive Chairman (appointed 1 September 2009)
Non-Executive Director (appointed 1 September 2009)
Non-Executive Director (appointed 8 December 2009)
Non-Executive Director (appointed 9 February 2011)
Chief Executive Officer (appointed 2 January 2021)
General Manager Operations (appointed 1 February 2021)
All of the above directors were also key management persons during the year ended 30 June
2020.
(b)
Key management personnel remunerations
Short-term employee benefits
Post-employment benefits
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
2021
$
1,000,586
92,390
1,092,976
2020
$
535,798
43,203
579,001
46
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Detailed remuneration disclosures are provided in the Remuneration Report section of the
Director’s Report.
23.
Key Management Personnel Compensation (continued)
(c)
Equity instrument disclosures relating to key management personnel
(i)
(ii)
Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and share issued on the exercise of such options,
together with terms and conditions of the options, can be found in the Remuneration Report
section of the Directors’ Report.
Option holdings
The number of options over ordinary shares in the Company held during the year by each
Director of the Company and other key management personnel, including their personally
related parties, are set out below:
2021
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
B Robertson
D Alford
2020
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
458,477
531,074
-
205,301
-
-
Balance at
beginning of
year
-
-
-
-
Granted as
compensation
Exercised
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,145
-
458,477
531,074
-
205,301
31,145
-
458,477
531,074
-
205,301
31,145
-
Granted as
compensation
Exercised
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
458,477
531,074
-
458,477
531,074
-
458,477
531,074
-
205,301
205,301
205,301
(iii)
Shareholdings
Ordinary Shares
The number of ordinary shares in the Group held during the financial year by each
Director and other key management personnel of the Group, including their
personally related parties, are set out below. There were no shares granted during the
year as compensation.
2021
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
B Robertson
D Alford
Balance at
beginning of year
Purchased
Other changes
Balance at
end of year
5,724,172
5,310,732
-
2,147,169
-
-
39,384
40,285
-
14,286
-
-
-
-
-
(14,286)
397,160
-
5,763,556
5,351,017
-
2,147,169
397,160
-
47
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
23.
Key Management Personnel Compensation (continued)
(c)
Equity instrument disclosures relating to key management personnel (continued)
2020
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
24.
Related Party Disclosures
Balance at
beginning of year
Purchased
Other changes
5,835,974
5,310,732
-
2,232,994
-
-
-
-
(111,802)
-
-
(85,825)
2,147,169
Balance at
end of year
5,724,172
5,310,732
-
Key Management Personnel
(i) Mr Boston’s Directors’ fees and consulting fees for the year were $216,800 (2020: $196,662) of
which $16,267 was accrued and outstanding at year end. Mr Boston is also a Director of
Raisemetrex Pty Ltd which was paid $60,000 by the Company to provide an online platform for
the administration of capital raisings and electronic communications with shareholders.
(ii) Mr Kay’s Directors’ fees and consulting fees for the year were $212,677 (2020: $199,255).
(iii) Mr Scrimgeour’s Directors’ fees for the year were $81,030 (2020: $81,030).
(iv) Mr Schwab’s Directors’ fees and consulting fees for the year were $121,638 (2020 $102,054) of
which $6,167 was accrued and outstanding at year end.
All transactions were made on normal commercial terms and conditions and at market rates.
25.
Share Based Payments
The Company has adopted an Employee Incentive Plan that allows for share options to be
granted to eligible employees and officers of the Group. The number of share options that can
be issued under the plan cannot exceed 5% of the total number of shares on issue. The terms and
conditions of the share options issued under the plan are at the discretion of the Board. During
the year no options were issued (2020: nil).
Options issued
The Company has issued equity based payments to key corporate and strategic consultants of
the Company to provide an incentive for their future involvement and commitment.
2021
2020
Number of
Options
Weighted
Average
Exercise
Price
$
Number of
Options
Number of
Options
Opening amounts
Exercised during the year
Closing amount
1,000,000
(1,000,000)
-
$1.00
$1.00
-
1,000,000
-
1,000,000
$1.00
-
$1.00
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
48
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
25.
Share Based Payments (continued)
2021
Issue date
Expiry date
Balance at
start of
year
7 Nov 2016
31 Oct 2020
1,000,000
Number
issued
during
year
Number
exercised
during year
Number
expired
during
year
Balance
at end of
year
Number
exercisable
at end of
year
-
(1,000,000)
-
-
-
Exercise
Price
$1.00
2020
Issue date
Expiry date
Balance at
start of
year
7 Nov 2016
31 Oct 2020
1,000,000
Number
issued
during
year
Number
exercised
during
year
Number
expired
during
year
Balance
at end of
year
Number
exercisable
at end of
year
-
-
- 1,000,000
1,000,000
Exercise
Price
$1.00
The weighted average share price during the financial year was $2.32 (2020: $2.53).
The weighted average remaining contractual life of options outstanding at the end of the financial
year was nil (2020: 0.34 years).
Performance Rights
The Company has adopted a Performance Rights Plan which allows for performance rights to be
granted to employees, Directors and consultants of the Group (“Eligible Participants”), by providing
performance related incentives and rewards. Subject to certain criteria being satisfied, the Board
may offer Eligible Participants performance rights which upon vesting will entitle the holder to one
ordinary fully paid share in the Company for each performance right held.
There were no Performance Rights issued in 2021 (2020: Nil).
Directors Shares
There were no Directors shares issued in 2021 (2020: Nil).
26.
Business Combination
On 20 January 2021 the group acquired 100% of the shares and voting rights in Unity Mining Pty Ltd
(Henty Gold Mine). Henty Gold Mine is a high grade, under ground gold-silver mine with established
infrastructure and significant exploration upside in the mineral rich Mt Read Volcanic belt in Western
Tasmania, proximate to world class deposits. The operation consists of an underground mine, which
is accessible from surface to the series of ore bodies via shaft and decline, linked to a common portal
exit, and a conventional CIL processing plant with a capacity of 300ktpa.
The acquisition includes the transition of the site operating team lead by General Manager, Mr Dion
Alford.
As the acquisition of Unity Mining Pty Ltd was completed on 20 January 2021, the accounting for the
business combination at 30 June 2021 is provisional.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
49
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
26.
Business Combination (continued)
Details of the acquisition are as follows:
Cash
Receivables
Inventories
Property, plant and equipment
Exploration – mining rights
Mining development assets
Payables
Provisions
Net assets acquired
Exploration and evaluation expenditure
Acquisition – date fair value of the total consideration
transferred
Representing:
Catalyst Limited Shares issued to vendor (1)
Cash Consideration paid
Deferred share consideration (2)
Deferred cash consideration (3)
Contingent consideration payable (4)
$
555,318
1,741,007
3,465,285
2,654,329
1,137,111
3,708,538
(2,743,139)
(3,329,300)
7,189,149
17,810,851
25,000,000
7,200,000
6,000,000
800,000
6,000,000
5,000,000
25,000,000
(1) 3,428,572 ordinary shares issued at $2.10 per share, as partial payment for the acquisition.
(2) Deferred share consideration will be deferred for a minimum of 3 years after purchase at $2.10
per share
(3) Deferred cash consideration is to be paid on the 6 month ($3,000,000) and 12 month ($3,000,000)
anniversary of the acquisition
(4) Contingent consideration amount will be calculated as the less of $5,000,000 or 50% of cashflow
to equity generated by Henty in the initial 12 months post acquisition. The payment of contingent
consideration will occur as soon as practicable 12 months after acquisition. Management has
assessed the probability of the payment as highly likely.
27.
Auditor’s Remuneration
Audit or review of the financial statements
Other services – audit of joint venture financial statements
2021
$
59,500
17,000
76,500
2020
$
25,600
9,200
34,800
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
50
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
28.
Commitments
There were no outstanding commitments, which are not
disclosed in the financial statements as at 30 June 2021
other than:
(a) Tenement commitments
No later than 1 year
Later than 1 year but not later than 5 years
2021
$
2020
$
1,461,750
1,452,500
-
-
1,461,750
1,452,500
29.
Financial Instruments
Notes
Floating
Interest
Rate
1 year or
less
$
Over 1-5
years
$
Non-interest
bearing
Total
$
$
9
10
15
16
0.5%
33,518,541
-
-
-
-
33,518,541
-
-
-
-
-
-
-
5%
224,794
220,062
-
33,518,541
2,826,154
2,826,154
2,826,154
36,344,695
11,640,073
11,640,073
215,526
-
215,526
444,856
11,800,000
11,800,000
2.7%
802,595
-
-
802,595
2021
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Total financial assets
Financial liabilities
Trade and other
payables
Advances
Leases
Deferred payables
Interest bearing
liabilities
Total financial liabilities
1,027,389
220,062
23,655,599
24,903,050
Net financial assets
32,491,152
(220,062)
(20,829,445)
11,441,645
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
51
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
29.
Financial Instruments (continued)
Notes
Floating
Interest
Rate
1 year or
less
$
Over
1-5
years
$
Non-interest
bearing
Total
$
$
2020
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Total financial assets
Financial liabilities
Trade and other
payables
Advances
Total financial liabilities
9
10
15
16
0.8%
18,335,520
-
-
-
-
18,335,520
-
-
-
Net financial assets
18,335,520
Reconciliation of net financial assets to net assets
Net Financial Assets
Property, plant & equipment
Exploration expenditure
Capitalised development
Inventory
Provisions
Net Assets
Market Risks
Interest rate risks
-
-
-
-
-
-
-
-
18,335,520
272,964
272,964
272,964
18,608,484
1,036,436
1,036,436
531,634
531,634
1,568,070
1,568,070
(1,495,106)
17,040,414
2021
$
2020
$
11,441,645
5,814,969
30,001,347
6,505,722
3,898,595
(3,517,027)
17,040,414
96,867
5,547,838
-
-
-
54,145,251
22,685,119
The Group’s exposure to the risks of changes in market interest rates relates primarily to the Group’s
short-term deposits with a floating interest rate. These financial assets with variable rates expose the
Group to cash flow interest rate risk. All other financial assets and liabilities in the form of receivables
and payables are non-interest bearing. The Group does not engage in any hedging or derivative
transactions to manage interest rate risk.
Interest rate sensitivity
At 30 June 2021, if interest rates had changed by 100 basis points during the entire year with all
other variables held constant, profit for the year and equity would have been $324,911 (2020:
$183,355) lower/higher, mainly as a result of lower/higher interest income from cash and cash
equivalents.
A sensitivity of 100 basis points has been selected as this is considered reasonably possible in the
current economic environment. Based on the sensitivity analysis only interest revenue from variable
rate deposits and cash balances are impacted resulting in a decrease or increase in overall
income.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
52
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
29.
Financial Instruments (continued)
Credit risk
The maximum exposure to credit risk at balance date is the carrying amount (net of provision of
doubtful debts) of those assets as disclosed in the balance sheet and notes to the financial
statements. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss
from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved
counterparties.
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors. The Group
manages liquidity risk by maintaining sufficient cash or credit facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short term investments.
30.
Contingent Liabilities and Contingent Assets
The Group does not have any contingent liabilities or contingent assets at 30 June 2021.
31.
Subsequent Events
In July 2021 the Company paid $3,000,000 portion of deferred consideration for the acquisition of
the Henty Mine.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has had no significant
impact on the Consolidated Entity up to 30 June 2021, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date. The situation is rapidly developing and is
dependent on measures imposed by the Australian Government and other countries, such as
maintaining social distancing requirements, quarantine, travel restrictions and any economic
stimulus that may be provided.
32.
Parent Entity Disclosure
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Contributed equity
Share based payments reserve
Accumulated losses
Total equity
2021
$
2020
$
24,293,673
17,372,957
57,229,965
17,469,824
3,084,714
708,626
3,084,714
708,626
72,912,682
372,972
(19,140,403)
41,350,109
372,972
(24,961,883)
54,145,251
16,761,198
Profit (loss) for the year
5,821,480
(5,015,297)
Total comprehensive profit (loss)
5,821,480
(5,015,297)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
53
CATALYST METALS LIMITED
DIRECTORS’ DECLARATION
The Directors of the Company declare that in the opinion of the Directors:
1.
the financial statements and notes are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(b) give a true and fair view of the consolidated entity’s financial position as at 30 June 2021
and of its performance for the year then ended;
2.
3.
4.
the financial statements and notes thereto also comply with International Financial Reporting
Standards, as disclosed in Note 1;
the Directors have been given the declarations required by section 295A of the Corporations Act
2001; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a circular resolution of the Board of Directors.
Stephen Boston
Chairman
Dated at Perth this 30th day of September 2021
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
54
Level 32, Exchange Tower, 2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
RSM Australia Partners
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Catalyst Metals Limited
Opinion
We have audited the financial report of Catalyst Metals Limited (Company) and its subsidiaries (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 other explanatory information, 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 (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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
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.
Key audit matter
How our audit addressed this matter
Capitalised exploration and evaluation expenditure
Refer to Note 13 in the financial statements
The Group has capitalised exploration and
evaluation expenditure with a carrying value of
$30,001,347 as at 30 June 2021.
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the asset including:
Determination of whether the exploration and
evaluation expenditure can be associated with
finding specific mineral resources and the basis
on which that expenditure is allocated to an
area of interest;
Assessing whether
of
impairment are present and, if so, judgement
applied
to determine and quantify any
impairment loss; and
indicators
any
Assessing whether exploration activities have
reached a stage at which the existence of
economically recoverable reserves may be
determined.
Our audit procedures included:
Ensuring that the right to tenure of the area of interest
was current;
Agreeing a sample of additions
to supporting
documentation and ensuring the amounts are capital
in nature and relate to the area of interest;
Enquiring with management and reviewing budgets
and other documentation as evidence that active and
significant operations in, or relation to, the area of
interest will be continued in the future;
Assessing and evaluating management’s assessment
of whether indicators of impairment existed at the
reporting date; and
Through discussions with
the management and
review of the Board Minutes, ASX announcements
relevant documentation, assessing
and other
management’s
exploration
activities have not yet progressed to the stage where
the existence or otherwise of economically
recoverable reserves may be determined.
determination
that
Key audit matter
How our audit addressed this matter
Business combination
Refer to Note 26 in the financial statements
Our audit procedures included:
Reviewing
the
respective sale and purchase
agreements to understand each transaction and the
related accounting considerations;
Assessing management’s determination of the fair
value of the consideration paid and net assets
acquired;
Evaluating management’s determination
the
acquisition of Unity Mining Pty Ltd met the definition
of a business within AASB 3 Business Combinations
and therefore was a business combination; and
that
Reviewing the disclosures in the financial statements.
On 20 January 2021, the Group acquired 100% of
Unity Mining Pty Ltd and its subsidiary. Under a
share sale agreement, the purchase consideration
of $25,000,000 consisted of 3,428,572 fully paid
ordinary
cash
consideration of $6,000,000; deferred consideration
of $6,800,000 payable
instalments and
contingent consideration of $5,000,000.
shares worth
$7,200,000;
in 3
The accounting for this acquisition is a key audit
the exercise of
matter because
judgement in relation to:
involved
it
Determining whether the transaction was a
business combination or an asset acquisition,
based on whether the definition of a business
in AASB 3 Business Combinations was met;
Determining the fair value of the consideration
paid through the issue of ordinary shares;
Determining
the
fair value of net assets
acquired; and
Determining the acquisition date.
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial report
and the 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 the 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf.
This description forms part of our auditor's report.
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 Catalyst Metals Limited, for the year ended 30 June 2022, 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.
David Wall
Partner
RSM Australia Partners
Perth, Western Australia
30 September 2021
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
The following information was reflected in the records of the Company as at 23 September 2021.
Distribution of share and option holders
1
1,001
5,001
10,001
- 1,000
- 5,000
- 10,000
- 100,000
100,001 and over
Including holdings of less than a marketable parcel
Fully paid
shares
Number of holders
Listed
options
Unlisted
options
148
88
28
45
13
322
-
-
-
-
-
-
572
516
171
288
82
1,629
199
Substantial shareholders
The following shareholders have lodged a notice of substantial shareholding in the Company.
Shareholder
St Barbara Limited
Gold Exploration Victoria Pty Ltd
Drill Investments Pty Ltd
Trapine Pty Ltd
Robin Scrimgeour
Twenty largest holders of fully paid shares
Shareholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
St Barbara Limited
Gold Exploration Victoria Pty Ltd
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Citicorp Nominees Pty Ltd
Trapine Pty Ltd
Diversified Minerals Management Pty Ltd
BNP Paribas Nominees Pty Ltd
Kayfund Pty Ltd
Invia Custodian Pty Ltd
BMO Nesbitt Burns
12. Gavin Arnold Caudle
13.
14.
Providence Gold and Minerals Pty Ltd
Kimberley Downs Pty Ltd
15. Gavin Arnold Caudle
16.
Lindway Investments Pty Ltd
17. Gavin Caudle
18.
19.
20.
Roger George Davis
John Paul Sisterson
Vestcourt Pty Ltd
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2021
Number of shares
%
12,690,222
12,495,278
7,375,000
5,799,877
5,310,731
Shares
12,690,222
12,180,000
10,405,886
7,650,000
6,593,553
4,684,770
2,960,999
2,139,921
2,108,843
2,066,875
1,428,571
1,373,625
1,350,349
1,208,921
1,047,619
865,975
797,092
786,561
709,255
521,716
12.91
12.71
7.50
5.90
5.40
%
12.91
12.39
10.59
7.78
6.71
4.77
3.01
2.18
2.15
2.10
1.45
1.40
1.37
1.23
1.07
0.88
0.81
0.80
0.72
0.53
73,570,753
74.85
58
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Twenty largest holders of quoted options
Optionholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
St Barbara Limited
Gold Exploration Victoria Pty Ltd
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Citicorp Nominees Pty Ltd
Trapine Pty Ltd
Invia Custodian Pty Ltd
Michael Rex Hunt & Lynne Maree Hunt
Kayfund Pty Ltd
Providence Gold and Minerals Pty Ltd
BNP Paribas Nominees Pty Ltd
12. Gavin Arnold Caudle
13.
Kimberley Downs Pty Ltd
14. Gavin Arnold Caudle
15.
Robert Joseph Biro
16. Gavin Caudle
17.
18.
19.
20.
Peter McClure Superannuation Fund Pty Ltd
Roger George Davis
Vestcourt Pty Ltd
John Sisterson & Simone Sisterson
Options
%
1,114,962
868,000
863,180
667,500
651,774
458,477
206,688
206,000
201,468
153,785
139,413
137,363
119,464
100,000
100,000
89,710
86,000
77,228
71,000
69,974
14.15
11.01
10.95
8.47
8.27
5.82
2.62
2.61
2.55
1.95
1.77
1.74
1.52
1.27
1.27
1.14
1.09
0.98
0.90
0.89
6,381,986
80.97
Unquoted securities
There were no classes of unquoted securities on issue in the Company.
Classes of shares and voting rights
At meetings of members or classes of members, each member entitled to vote may vote in person or by proxy
or attorney. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is
entitled to one vote, and on a poll, every person present in person or by proxy has one vote for each ordinary
share held.
Voluntary escrow
Ordinary fully paid shares subject to voluntary escrow until 20 January 2024
Number
3,428,572
Corporate governance statement
The Company’s 2020 corporate governance statement can be viewed at
https://catalystmetals.com.au/about-catalyst/corporate-governance/
59
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Tenement directory
Project
Victoria
Four Eagles
Tandarra
Macorna
Boort
Drummartin
Raydarra East
Sebastian
Raydarra
Golden Camel
Tasmaina
Henty Gold Mine
Tenement number
Beneficial interest
RL006422, EL5295, EL5508,
EL006859
50%
RL006660
51%
EL5521, EL006894
EL006549 (mineral rights)
100% (farm-out of 50% interest)
EL006670
EL006507
EL5509
EL5533
EL007214
100% (farm-out of 50% interest)
100% (farm-out of 50% interest)
100%
100%
100%
EL5490, EL5449
50.1% (earning in via farm-in agreement)
ML 7M/1991, ML 5M/2002,
ML 7M/2006, EL28/2001,
EL8/2009
100%
Competent person statement
The information in this report that relates to exploration results is based on information compiled by Mr Bruce
Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is
a non-executive director of the Company and has sufficient experience that is relevant to the style of
mineralisation and type 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 (the JORC Code). Mr Kay consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
Much of the historical information relating to the Four Eagles project was prepared and first disclosed under
the JORC Code 2004. This information has not been updated since to comply with the JORC Code 2012
on the basis that the information has not materially changed since it was reported.
Information relating to the Tandarra project was first disclosed by previous tenement holders under the
JORC Code 2004. This information has been subsequently reported by the Company in accordance with
the JORC Code 2012, refer to announcement dated 1 September 2014 and the quarterly activities report
dated 31 July 2014.
60
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Mineral resources statement for Henty Gold Mine
In September 2020, CSA Global Pty Ltd (CSA Global) was commissioned by the vendors of the Henty Gold
Mine in Tasmania to prepare a Mineral Resource Estimate (MRE). The MRE has been reported in
accordance with the JORC 2012 Code. The Company acquired a 100% interest in the Henty Gold Mine
with effect from 20 January 2021.
The Company’s Mineral Resource estimate for the Henty Gold Mine as at 30 June 2021 is detailed below.
JORC Classification
Indicated
Inferred
Total
Tonnage (Mt)
1.6
0.8
2.4
Au (g/t)
4.3
4.2
4.3
Ounces (koz)
225
109
334
• Notes on Henty JORC 2012 Mineral Resources: The Resource estimate was prepared by CSA Global based on data up to 30 June
2020. An updated Resource estimate is currently being prepared.
• Due to the effect of rounding, totals may not represent the sum of all components.
•
Tonnages are rounded to the nearest 0.1 million tonnes, ounces are rounded to the nearest 1,000 ounces, grades are shown to
two significant figures.
• Reporting criteria are: Indicated and Inferred material (RESCAT=2 or RESCAT=3), Au >1.75 g/t (AU>1.75), unsterilised (STERIL=0) with
•
reasonable prospects of eventual economic extraction (RPEEE=1).
The information reported that relates to the Mineral Resources for the Henty underground deposit is extracted from the ASX release
titled Major Exploration Programs, Complementary Acquisition and Capital Raising, dated 21 December 2020.
Competent Person’s Statement for JORC 2012 Mineral Resource Estimate
The Henty Resource estimation in this report was prepared by Mr Christopher Adams of CSA Global Pty Ltd,
a competent person as defined by the 2012 JORC Edition, who has five years’ experience which is relevant
to the style of mineralisation and type of deposit described in the report and to the activity for which he is
accepting responsibility. He is a Member or Fellow of the Australasian Institute or Mining and Metallurgy or
the Australian Institute of Geoscientists or a recognised Professional organisation (RPO) included in a list
promulgated by ASX from time to time. Mr Adams verifies that the Mineral Resource estimate section of
this report is based on and fairly and accurately reflects in the form and context in which it appears, the
information in his supporting documentation relating to Mineral Resource estimate. Mr Adams consents to
the inclusion in the report of the matters based on his information in the form and context in which it
appears.
Catalyst confirms that it is not aware of any new information or data that materially affects the information
included in the original ASX market announcements and that all material assumptions and technical
parameters underpinning the estimates in the relevant ASX market announcements continue to apply and
have not materially changed. The Company confirms that the form and context in which the Competent
Persons
from the original market
announcements.
findings are presented have not been materially modified
Governance and internal controls
Mineral Resources are estimated either by suitably qualified consultants or internal personnel in
accordance with the applicable JORC Code and using industry standard techniques and internal
guidelines for the estimation and reporting of Mineral Resources. All data is collected in accordance with
applicable JORC Code requirements. Any Ore Reserve estimates are based on pre-feasibility or feasibility
studies which consider all material factors.
The estimates and supporting data and documentation are reviewed by qualified Competent Persons
(including estimation methodology, sampling, analytical and test data).
61