ABN 54 118 912 495
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2022
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
27
28
29
30
31
32
66
67
72
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
1
CATALYST METALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
AUDITORS
Stephen Boston (Non-Executive Chairman)
Robin Scrimgeour (Non-Executive Director)
Bruce Kay (Non-Executive Director)
James Champion de Crespigny
Executive Director)
(Non-
COMPANY SECRETARY
Frank Campagna
RSM Australia Partners
Level 32/2 The Esplanade
Perth, Western Australia 6000
SHARE REGISTRY
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney, New South Wales 2000
REGISTERED OFFICE &PRINCIPAL PLACE OF
BUSINESS
Telephone: 1300 288 664 or
+612 9698 5414
Unit 9, Churchill Court, 331-335 Hay Street
Subiaco, Western Australia 6008
Telephone: +618 6107 5878
Email:
Website:
admin@catalystmetals.com.au
www.catalystmetals.com.au
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
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 2022. The Directors have the power to amend and reissue the financial statements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
CHAIRMAN’S LETTER
Dear Shareholder,
On behalf of the Board of Directors of Catalyst Metals Limited, it gives me great pleasure to present the
Company’s 2022 Financial Report. The 2022 financial year has been an important year for the Company
as we achieved some significant milestones at both our Victorian exploration projects and our Henty Gold
Mine in Tasmania.
I am particularly happy to announce a group EBITDA of $7.4 million. This is an outstanding effort from our
team in the face of a challenging period with increasing cost pressures, skill shortages and ongoing
disruptions from COVID 19.
This result demonstrates that the Company’s strategy of increasing production and lowering unit costs at
the Henty Gold Mine is beginning to bear fruit. Our aim with the Henty acquisition was to demonstrate
that we could be successful mine operators and, to the extent possible, generate cashflow to cover
corporate and exploration costs. If successful, this would place the Company in a unique position
amongst its peers and provide capital protection for shareholders throughout market cycles.
The 2022 financial year was a period of change with a number of key leadership appointments including
John McKinstry as Chief Executive Officer and Valentine Utete as General Manager of Operations at
Henty. The Company also welcomed James Champion de Crespigny, an experienced mining executive
as Non-Executive Director following the retirement of Gary Schwab.
At Henty, operations have continued to improve throughout the year with throughput increasing to an
annualised rate of 230,000tpa and gold production of 25,199oz for the year. Behind these headline
numbers are numerous operational improvements our team has worked hard to deliver which I would like
to take a moment to acknowledge. Across the operations from exploration, production, processing and
support services, improvements are being realised which is both a credit to the team and also highlights
the opportunities at Henty and supports the rationale behind the Company’s acquisition.
The Company is committed to extending Henty’s mine life and improving profitability, and we consider
exploration fundamental to this strategy. During the year we announced a number of high-grade
intercepts from our drilling activities. Some of these were in close proximity to existing underground mine
infrastructure which will allow for low-cost conversion, others were in historically underexplored areas,
including the Cradle Zone and Darwin South, which represent potentially attractive future mining zones.
In Victoria, the Company completed just over 50,000m of drilling across its exploration projects.
Unfortunately, the impact of COVID hampered access to drill rigs and prevented key personnel from
getting to Bendigo. This negatively impacted drilling results during the financial year.
Nonetheless, the drilling did prove successful in increasing the known mineralisation in close proximity to
Boyd’s Dam. This is an important milestone as this concentration of mineralisation alters the economics
of any future operation that may exist, as it will allow ore to be sourced from multiple high-grade areas in
close proximity to one another i.e. Boyd’s Dam, Hayanmi, Pickles, Cunneens and Boyd East.
At the Four Eagles Gold Project, the Company announced that studies had commenced to evaluate the
concept of an underground exploration tunnel. This is an important development for the project which
would allow Catalyst to more accurately drill targets, lower drilling costs and allow exploration of other
nearby prospects. The drilling to date has been from surface and is now at a point where the Company
is confident that a Mineral Resource will be estimated in the coming financial year.
The Company has engaged industry leading consultants and conducted extensive community and
stakeholder consultation as it works towards the submission of the underground exploration tunnel Work
Plan with the Victorian Government.
The Board would like to especially acknowledge the outstanding work and effort of all our employees
and our management teams, across our operations.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
CHAIRMAN’S LETTER
Finally, the Board would like to acknowledge and thank all of its many loyal shareholders, our Joint Venture
Partners and the many consultants and advisers, for all they have done to enhance and contribute
towards the future growth of the Company as it continues to close in on the next Bendigo Goldfield and
return Henty to its position as a long term, sustainable operation in Tasmania.
Stephen Boston
Chairman
30 September 2022
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
The Directors of Catalyst Metals Limited present their report on the consolidated entity for the year ended
30 June 2022.
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
Bruce Kay
James Champion de Crespigny (Appointed 12 November 2021)
Gary Schwab (retired 12 November 2021)
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 $57,720,276 as at 30 June 2022 (2021: $55,182,437 )* Restated.
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 profit after income tax of the Group for the year ended 30 June 2022 was $2,091,498 (2021:
$934,745) *Restated.
DIVIDENDS
No dividend has been paid during or is recommended for the financial year ended 30 June 2022.
*Refer Note 34 in the Financial Statements for detailed information on restatement of comparative.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
Victoria Introduction and Overview
Catalyst has significant interests in two retention licences (RL’s) and thirteen 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).
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
• A systematic drill-out of the Boyd’s Dam mineralisation during the year will allow reinterpretation of
the geology and the creation of a block model for delivering a JORC compliant Resource in FY23.
Focus shifted to the northern section of Hayanmi where a systematic drill out has commenced with
the aim of proceeding to a Resource in 2023.
•
• An application seeking permission to create an underground access for diamond drilling was
prepared during the year, with an aim of submitting in the new year. The tunnel at around 140m
below surface will run parallel with Boyd’s Dam and Hayanmi providing year-round access to cheaper
more efficient drilling.
Tandarra Gold Project
• Drill rigs budgeted for Tandarra were not available in the limited season available on the Tandarra
ground forcing the delay of the planned Resource drill out. The drill-out has been deferred to the new
financial year.
Drummartin Project
• Air core and diamond drilling was conducted on Target 9 prospect.
•
In June 2022, partners St Barbara Mining who were managing the program to earn 50% interest in the
joint venture advised they would not proceed further due to other corporate priorities. The interest
reverts back to Catalyst along with all information gathered since February 2020. The information
arising from St Barbara Mining’s $2.2m works programme undertaken since February 2020 reverts to
Catalyst.
Boort Project
• Air core drilling and assaying has been completed at four gravity geophysics targets resulting in
•
anomalous gold intersections at BTG02. Further follow up drilling is planned.
Encouragingly, 3m at 18.25 g/t Au from 0.6m at 0.95 g/t Au were intersected in this first exploration
campaign.
Golden Camel Project
• Diamond drilling completed on depth extension target at the Golden Camel pit, with interpretation
ongoing.
Other Exploration Projects
Air core drilling was carried out on the Mologa lease (EL006859) immediately to the east of Four Eagles,
with interpretation ongoing.
Ground-based magnetics geophysics and geochemical soil sampling programs have been completed
on a number of leases during the year, with results showing good potential for ongoing target generation
despite the Murray Basin cover.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
COVID-19 pandemic management
Towards the end of 2021, exploration activities gradually became less affected by COVID-19 restrictions,
most notably, drilling contractors were able to travel across state borders. Personnel management
through COVID-19 mitigation processes continued to be effective, with little disruption due to infections.
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 multiple parallel structural zones trending roughly north-south
(Boyd’s Dam - Boyd North and Hayanmi as detailed on Figure 3). Additional prospective structural zones
are shown including the Pickles and Cunneens prospects to the west and Boyd East and Eagle 5 and
Eagle 6 to the east.
Figure 1: Whitelaw Gold Belt and Parallel Structural Zones showing
Catalyst managed tenement holdings
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Drilling at Boyd’s Dam - Boyd North during FY22 included diamond (DD), reverse circulation (RC) programs.
The DD programmes produced further high-grade gold intersections at depth and a comprehensive RC
program into the known mineralisation delivered significant results. As shown on Figure 2, some of the
intersections recorded are:
9m @ 29.09g/t Au
3m @ 25.24g/t Au
8m @ 6.72g/t Au
1m @ 49.1g/t Au
7m @ 2.15g/t Au
16m @ 1.37g/t Au
14m @ 1.16g/t Au
9m @ 1.37g/t Au
5m @ 2.02g/t Au
Figure 2: Longitudinal Projection of Boyd’s Dam–Boyd North showing FY22 diamond and RC drill holes and significant
intercepts
In April 2022 Catalyst employed Mr Adam Place to the position of General Manager – Victoria to
accelerate plans for progressing Four Eagles to a development phase. This would involve development
of an exploration tunnel beneath the Murray Basin Sediments to provide a drilling platform between the
Boyd’s Dam and Hayanmi prospects. The underground platform would provide year-round access for
cheaper, deeper drilling as part of Feasibility Studies to determine the viability of future mining.
To undertake the exploration tunnel, Catalyst is required to submit a Works Plan to the Victorian
Government. For the purpose of the Works Plan, investigations continued into the geotechnical and
hydrogeological characteristics of cover sediments and basement rock in preparation for technical
studies required for submission of the Works Plan.
Soon after year-end, all studies necessary for the submission of the Work Plan to the Victorian
Government regulators were completed. Lodgement of the Works Plan is anticipated in Q2 FY23.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 3: Four Eagles Gold project showing location of prospect locations, gold trends and FY22 drilling program
locations.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
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 lies within Retention Licence RL006660. The RL covers an envelope of gold
mineralisation and exploration prospects approximately 12 kilometres long and up to 4 kilometres wide.
Within this Catalyst is continuing to drill three gold bearing structural zones trending roughly north-south
(Tomorrow, Macnaughtan, and Lawry Zones, as detailed on Figure 4).
Figure 4: Drill plan showing gold and arsenic enriched zones and significant results achieved in the Lawry Zone
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Hole TND007 was drilled into the Lawry Zone, and returned significant intersections, including:
0.9m @ 1.76g/t Au from 61.9m
12.9m @ 33.1g/t Au from 66.4m (including 0.5m @ 831g/t Au)
1.6m @ 0.5g/t Au from 122.8m
1.0m @ 2.5g/t Au from 153.5
0.7m @ 0.5g/t Au from 158.5m
1.0m @ 1.2g/t Au from 173.4
1.0m @ 1.32g/t Au from 226.6m
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. A program of two diamond drillholes was completed during the reporting period, with assaying
and interpretation ongoing.
At the Boort exploration licence EL006670 (Figure 1), Catalyst as manager of the joint venture with GEV
has conducted follow up drilling over several gravity targets, resulting in the return of a significant gold
intersection (3m @ 18.2g/t Au) and an anomalous intersection (6m @ 0.9g/t Au).
At Drummartin (EL006507, Figure 1) a large air core drilling program was completed in 2021 with results
finalised during the FY22 reporting period, including significant intersections of: 3m @ 6.19g/t Au; 1m @
1.27g/t Au; and 4m @ 0.59g/t Au.
Follow-up air core and diamond drilling was completed during FY22 with the interpretation of results yet
to be finalised.
HENTY GOLD MINE, TASMANIA
In 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 cost of Henty was $8 million in Catalyst
shares at $2.10 per share (ie. 3.8m shares or 3.9% of Catalyst’s outstanding ordinary share capital), $6
million initial cash payment and two deferred payments of $3 million of which both have been paid. A
contingent payment subject to the after tax performance of Unity was not payable.
Under Catalyst management the operation focused on delivering a more consistent performance,
focusing on adherence to the mining plan and underground drilling to boost Resource growth and re-
new exploration efforts. The continuous success achieved in drilling enabled the site team to deliver a
more aggressive target for the new financial year. In July, Catalyst announced plans to increase the gold
production rate from the current 25,0000ozpa to 35,000ozpa over the FY23 year. This increase was made
possible by an increased Life of Mine plan involving a new mining crew commencing in the upper sections
of the mine.
During the year, Catalyst welcomed the appointment of Mr Valentine Utete to the position of Henty
General Manager. Mr Utete is an experienced mining professional with a distinguished record in
underground mining operations. Mr Utete has already had a positive contribution to the Henty operations
and Catalyst itself.
Catalyst views the Henty Mine as an exploration target as much a mine. During FY22 the Company re-
invested $4.8M in underground and surface drilling to better define Resources, expand Resources and
look for new Resources.
Development of access for both stopeing and exploration is critical to the mine achieving goals and
being able to plan for future expansion.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Key metrics for the year:
Tonnes processed
Head grade
Recovery
Gold produced
Gold sold
Quarter 1
49,299
4.6
92.1
6,775
6,366
Quarter 2
51,686
4.2
91.5
6,311
6,621
Quarter 3
57,847
3.2
91.3
5,358
5,004
Quarter 4
56,672
3.9
94.2
6,755
6,780
Full Year
215,504
3.9
92.3
25,199
24,771
Gold produced in FY22 was 25,199 ounces of gold at a C1 cash cost and AISC of $1,706/oz and $2,207/oz
per ounce respectively. Revenue from the Henty Gold Mine operations was $63.3 million and after
royalties, refining and operating costs, an EBITDA of $10.3 million was reported.
Catalyst is heavily committed to continued growth of Mineral Resources and the publishing of Ore
Reserves compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC).
Drilling metrics
Type of Drilling
Grade control
Resource growth
Exploration
Total
FY22 Actual Metres
FY23 Planned Metres
21,939
17,305
8,345
47,589
9,640
12,880
37,960
60,480
In FY22 a large portion of the drilling was either grade control or resource growth, due to the limited drilling
done previously and the short time span to production. In FY23 the focus will progressively shift in favour
of more Resource growth and to a majority of exploration drilling. Exploration drilling is focused on finding
new orebodies to further boost production.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
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 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 6: Henty longitudinal projection showing key areas of exploration focus in 2022.
Work Health and Safety
During the year Catalyst significantly invested in upgrading its Work, Health and Safety Standards in line
with 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 continued improvement in its safety performance during the year. The TRIFR now stands
at 12 compared to 10 at the end of FY21.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 7: Henty Total recordable Injury Frequency Rate as at 30 June 2022.
Environmental Performance
Throughout the year there were no material environmental impacts.
Through ongoing planning and review of management practices Catalyst 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
There were no significant changes in the state of affairs of the Group during the financial year.
FUTURE DEVELOPMENTS
In Victoria, Catalyst has agreed to budgets with its joint venture partners for ongoing exploration and
development.
Catalyst has prepared a Work Plan on behalf of the JV partners for submission to the Victorian government
regulators seeking permission to develop a 3.4Km tunnel at Four Eagles. The tunnel will commence at the
northern end of Boyd’s North and run parallel with Boyd’s Dam and Hayanmi, at a depth of approximately
140m. The tunnel will be used as a drilling platform for completing Resource drillouts on Boyd’s Dam,
Boyd’s North and Hayanmi but will also provide the platform for deeper exploration drilling which has
proved difficult from surface. The underground platform provides year round access, minimises the
impact on cropping fields and provides minimal visual impact on surface. Approval is anticipated in
early 2023 with an investment decision to be made mid-year for a spring start on development.
At Henty, the Board approved a drilling capital budget of $7.0M for growth of Resources and exploration.
The FY23 drilling will focus on the newly identified Cradle Zone, deeper extensions at Darwin South and
the near surface Collar Zone.
The addition of an additional mining crew at Henty will enable the site to exploit upper areas of the mine
which had previously been excluded from the mining plan. The crew will use equipment already owned
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
by the mine, providing additional ore at incremental cost. The additional ore enables the production
rate to increase from the current 25,000ozpa to a 35,000ozpa rate by July 2023. Going forward the
operation will seek opportunities to further increase the production rate though exploration efforts.
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
On 27 September 2022 the Company released an updated Resource and Reserve statement which
showed that Mineral Resources at the Henty Gold Mine had increased by 10% after accounting for FY22
production. Mineral Reserves for 30 June 2022 were 2.6Mt at 4.3g/t for 368,000oz Au (refer to the
Additional Information section in this Annual Report).
No further significant events have occurred since the end of the financial year.
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.
Special Responsibilities:
Chairman
Other Directorships:
None
Interests in securities:
5,750,727 Ordinary Shares
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:
5,509,499 Ordinary Shares
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
James Champion de Crespigny (Non-Executive Director)
(Appointed 12 November 2021)
Mr Champion de Crespigny is a qualified chartered accountant with extensive experience in capital
markets, financing and mergers and acquisitions, primarily in the mining sector. His most recent
experience was a Director of Cutfield Freeman & Co., a global boutique financial advisor specialising in
the mining industry. Prior to this, he was an Associate Director at Mining Private Equity firm, EMR Capital.
Special Responsibilities:
Business Development Director, Chairman Audit Committee
Other Directorships:
None
Interests in securities:
817,279 Ordinary Shares
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:
2,222,169 Ordinary Shares
Retired Directors and Officers
Gary Schwab
Retired 12 November 2021
Independent Non-Executive Director
B Robertson
CEO
Resigned 30 September 2021
D Alford
Resigned 12 July 2022
GM Henty
Information on Company Secretary
Frank Campagna B.Bus (Acc), CPA
Company Secretary of Catalyst Metals Limited since November 2009. Mr Campagna is a Certified
Practising Accountant with over 25 years’ experience as Company Secretary, Chief Financial Officer 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 2022
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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
Number held
and entitled
to attend
Number
Attended
Audit Committee
Meetings
Number
Attended
Number
held and
entitled to
attend
5
5
5
3
2
5
5
5
3
1
-
-
-
-
-
-
-
-
-
-
Stephen Boston
Robin Scrimgeour
Bruce Kay
James Champion de Crespigny (appointed 12
November 2021)
Gary Schwab (retired (12 November 2021)
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
2022. 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 250,000 ordinary shares under option (2021:7,881,996).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
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.
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 $550,000 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
19
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
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.
At the 2021 AGM, 99.7% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2021. The company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Details of Remuneration for Year Ended 30 June 2022
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.
2022
Name
Short-term
employment benefits
Cash salary
and fees
$
Other
$
Post-
employment
benefits
Superannuation
$
Share-based
payments
Shares and
Options
$
Non-Executive Directors
S Boston
R Scrimgeour
J Champion de Crespigny(4)
B Kay
Management
J McKinstry – CEO(6)
V Utete – GM Henty(7)
Retired directors & Officers
G Schwab – Director(5)
B Robertson - CEO(5)
D Alford – GM Henty(5)
171,200
81,400
122,672
185,485
289,808
49,542
77,000
119,041
314,999
-
-
-
-
-
-
-
-
-
Total
$
188,560
81,400
134,322
364,127
310,433
54,450
17,360
-
11,650
26,392
20,625
4,908
-
-
-
(1) (3) 152,250
-
-
-
11,400
14,404
27,499
(1) (2) (3) 142,100
120,500
-
230,500
253,945
342,498
Total key management
personnel compensation
(1) Shareholders approved the issue of 75,000 shares and 60,000 shares to Mr Kay and Mr Schwab respectively, for
1,411,147
1,960,235
414,850
134,238
-
the significant additional services they provided during the Henty Gold Mine acquisition process.
(2) Shareholders also approved the issue of 10,000 shares Mr Schwab for consulting services to be provided in the
12 month period following the AGM, following his retirement from the Board.
(3) The shares were valued at a deemed price of $2.03, being the closing price of the shares on the day
shareholders approved the issue.
Includes remuneration received subsequent to his appointment on 12 November 2021.
Includes remuneration received up until the date of resignation of the key management personnel.
Includes remuneration received subsequent to his appointment on 4 October 2021.
Includes remuneration received subsequent to his appointment on 1 May 2022.
(4)
(5)
(6)
(7)
In 2022, 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 2022, Mr Boston received $80,000 per annum in
Directors’ fees and was paid extra consulting fees for managing the Company. Mr Champion de
Crespigny was paid $47,072 in Directors fees and Mr Schwab received $37,000 in Directors’ fees and extra
consulting fees for services provided to the Company outside his duties as a director, up until the time he
retired as a director.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
20
CATALYST METALS LIMITED
DIRECTORS’ REPORT
2021
Name
Non-Executive Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Management
B Robertson - CEO
D Alford – GM Henty
Total key management
personnel compensation
Short-term employment
benefits
Cash salary
and fees
$
Other
$
Post-employment
benefits
Superannuation
$
Share-based
payments
Shares and
Options
$
Total
$
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
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.
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.
SERVICE AGREEMENTS
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. Details of these agreements are as follows:
Current Personnel
Mr John McKinstry was promoted to the role of Chief Executive Officer of Catalyst on 4 October 2021. The
key terms of Mr McKinstry’s employment is a base salary of $300,000 per annum with statutory
superannuation. Mr McKinstry 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 McKinstry is
entitled to a three month redundance if there is a material change in his role or responsibilities.
Mr Valentine Utete was employed as General Manager of the Henty Gold Mine on 1 May 2022. The key
terms of Mr Utete’s employment is a base salary of $300,000 per annum with statutory superannuation. Mr
Utete receives company housing and a motor vehicle. Mr Utete 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 Utete is entitled to a three month redundance if there is
a material change in his role or responsibilities.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
21
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Former Personnel
Mr Bruce Robertson who was employed as Chief Executive Officer of Catalyst resigned on 30 September
2021. The key terms of Mr Robertson’s employment were a base salary of $300,000 per annum with
statutory superannuation. Mr Robertson and the Company were required to provide three months notice
for termination, unless the termination was for cause and then no notice period was required. Mr
Robertson was entitled to a six month redundance if there was a material change in his role or
responsibilities. Mr Robertson was also entitled to receive the following options:
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
On Mr Robertson’s resignation he was entitled to retain 250,000 options that vested during his period of
employment.
Mr Dion Alford who was employed as General Manager of the Henty Gold Mine resigned on 12 July
2022. The key terms of Mr Alfords employment were a base salary of $310,000 per annum with statutory
superannuation. Mr Alford received company housing and a motor vehicle. Mr Alford and the Company
were required to provide three months notice for termination, unless the termination was for cause and
then no notice period was required. In the event of redundance then Mr Alford was entitled to
redundance pay in accordance with the National Employment Standards.
SHARE-BASED COMPENSATION
Shares
Pursuant to shareholder approval on 12 November 2021, on 23 November 2021 Mr Kay and Mr Schwab
were issued 75,000 shares and 60,000 shares respectively for the significant additional services they
provided during the Henty Gold Mine acquisition process. On 23 November 2021, Mr Schwab was issued
10,000 shares for the consulting services rendered. The issue was approved by shareholders at the AGM
held on 12 November 2021.
The shares were valued at $2.03, being the closing price on 12 November 2021, the day the issue of the
shares was approved by shareholders.
No shares were issued as compensation during the previous financial year.
Employee Incentive Plan
Equity incentives (shares or options and performance rights 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.
No equity incentive options were granted during the year (2021: Nil).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
22
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors
and other key management personnel in this financial year or future reporting years are as follows:
Name
Number of
Options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise
price
Fair value per
option at grant
date
Bruce Robertson
250,000
4 Jan 2021
22 Oct 21
30 Nov 24
$3.00
$0.482
Options granted carry no dividend or voting rights.
Fixed vs At Risk Remuneration
Proportion of remuneration linked to performance and the fixed remuneration is as follows:
B Robertson
Fixed Remuneration
At Risk
2022
53%
2021
100%
2022
47%
2021
0%
The fixed remuneration percentage for all other key management personnel was 100% for the year
(2021:100%). The share based payments to the other personnel aren’t performance based.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
23
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
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:
2022 – Options Holdings
Name
S Boston
R Scrimgeour
B Kay
J Champion de
Crespigny (2)
G Schwab (1)
J McKinstry
V Utete
D Alford
Balance at
beginning of
year
458,477
531,074
205,301
-
-
-
-
-
Granted as
compensation
Expired
Other
changes (4)
Balance at
end of
year
Vested and
exercisable
-
-
-
-
-
-
-
-
(458,477)
(531,074)
(205,301)
(80,049)
-
-
-
80,049
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
B Robertson (3)
31,145
250,000
(31,145)
(250,000)
(1) Mr Schwab retired as a non-executive director on 12 November 2021.
(2) Mr Champion de Crespigny held an indirect interest in 80,049 options on appointment as a non-executive
director on 12 November 2021.
(3) Mr Robertson resigned on 30 September 2021.
(4) The listed options lapsed on 25 May 2022.
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.
2022 – Ordinary Share Holdings
Balance at
beginning of
year
Granted as
compensation
Purchased
Other
Changes
Balance at
end of year
Directors
S Boston
R Scrimgeour
B Kay
J Champion de
Crespigny (1)
G Schwab (2)
J McKinstry
V Utete
B Robertson
D Alford
5,763,556
5,351,017
2,147,169
-
-
-
-
397,160
-
-
-
75,000
-
70,000
-
-
-
-
46,767
(59,596)
5,750,727
-
-
5,509,499
2,222,169
817,279
817,279
158,482
-
-
-
-
-
-
-
(70,000)
-
-
(397,160) (3)
-
(1) Mr Champion de Crespigny held an indirect relevant interest in 814,779 shares on appointment as a non-
executive director on 12 November 2021.
Mr Schwab retired as a non-executive director on 12 November 2021.
(2)
(3) Mr Robertson resigned as Chief Executive Officer on 30 September 2021.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
-
-
-
-
-
24
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
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 (2021: $60,000) by the Company
to provide an online platform for the administration of capital raisings and electronic communications
with shareholders.
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:
2022
2021
2020
2019
2018
Net profit (loss) for the period
$2,091,498
$934,745*
($1,746,832)
($1,686,017)
($4,241,647)
1.205
1.95
2.13
1.04*
2.75
(2.2)
1.96
(2.3)
1.50
(6.5)
Share price at financial year
end ($)
Basic profit (loss) per share
(cents per share)
*Restated
END OF REMUNERATION REPORT
2022 Shares under Option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant Date
Expiry Date
Exercise Price
Number of Options
4 January 2021
30 November 2024
$3.00
250,000
The following ordinary shares were issued in the Company during the year ended 30 June 2022 and up
to the date of this report on the exercise of options granted:
Date Options
Granted:
27 August 2019
Exercise Price
Number of shares
issued
$2.45
425
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
25
CATALYST METALS LIMITED
DIRECTORS’ REPORT
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 2022.
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 2022 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 2001.
Stephen Boston
Chairman
Perth, Western Australia
30 September 2022
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
26
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 2022, 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.
RSM AUSTRALIA PARTNERS
Perth, Western Australia
30 September 2022
MATTHEW BEEVERS
Partner
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 2022
Current Assets
Cash and cash equivalents
Other financial assets
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
Employee benefits
Deferred consideration payable
Contingent consideration payable
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Deferred consideration payable
Employee benefits
Provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed equity
Share-based payments reserve
Accumulated losses
2022
$
Restated *
2021
$
Note
9
9
10
11
10
12
13
14
15
16
17
18
19
23
23
17
23
19
27
18,242,571
30,518,541
3,000,000
3,431,293
5,705,826
3,000,000
2,816,154
3,898,595
30,379,690
40,233,290
36,500
11,186,630
17,507,557
20,428,429
49,159,116
10,000
12,381,902
11,432,461
18,749,849
42,574,212
79,538,806
82,807,502
12,002,700
11,640,045
1,514,999
639,760
1,509,281
1,589,103
-
-
215,526
224,794
802,610
604,350
5,205,000
5,000,000
17,255,843
23,692,325
123,979
800,000
711,018
2,927,690
4,562,687
220,063
800,000
-
2,912,677
3,932,740
21,818,530
27,625,065
57,720,276
55,182,437
20
21(a)
21(b)
73,238,523
72,912,682
493,472
372,972
(16,011,719)
(18,103,217)
TOTAL EQUITY
20
57,720,276
55,182,437
*Refer Note 34 for detailed information on restatement of comparative.
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 2022
28
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2022
Revenue from continuing operations
Other income
Interest revenue
Expenses
2022
$
Restated *
2021
$
63,330,429
28,508,849
5,546,028
58,486
781,077
88,535
Note
4
5
Mining and processing costs
(30,945,076)
(9,951,823)
Depreciation and amortisation relating to gold sales
(8,324,457)
(4,406,304)
Royalties
(3,674,617)
(2,176,654)
Administration, corporate, occupancy and travel costs
(4,417,153)
(2,125,466)
Employee benefits expense
Depreciation
Exploration and evaluation expenditure
Profit before income tax expense from continuing operations
Income tax expense
Profit after income tax from continuing operations
Total comprehensive income for the year
Total comprehensive income attributable to
members of the Parent entity
Earnings per share for profit attributable to the owners of Catalyst
Metals Limited
Basic profit per share (cents per share)
Diluted profit per share (cents per share)
(14,676,505)
(4,808,586)
(2,018,757)
(750,888)
(2,786,880)
(4,223,995)
2,091,498
934,745
-
2,091,498
2,091,498
-
934,745
934,745
2,091,498
934,745
2.13
2.12
1.04
0.96
6
8
7
7
*Refer Note 34 for detailed information on restatement of comparative.
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 2022
29
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2022
Notes
Contributed
Equity
Accumulated
losses
$
$
Share-
based
payments
reserve
$
Total
$
Balance at 30 June 2020
41,350,109
(19,037,962)
372,972
22,685,119
Total comprehensive profit
for the year * Restated
Transactions with owners in
their capacity as owners:
Issue of shares
Issue of options
Share issue expenses
Balance at 30 June 2021 *
Restated
Total comprehensive profit
for the year
Transactions with owners in
their capacity as owners:
Issue of shares
Issue of options
Share issue expenses
Balance at 30 June 2022
20
20
20
20
20
-
934,745
32,281,780
-
(719,207)
-
-
-
-
-
-
-
934,745
32,281,780
-
(719,207)
72,912,682
(18,103,217)
372,972
55,182,437
-
2,091,498
325,841
-
-
-
-
-
-
-
120,500
-
2,091,498
325,841
120,500
-
73,238,523
(16,011,719)
493,472
57,720,276
*Refer Note 34 for detailed information on restatement of comparative.
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 2022
30
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2022
Cash Flows from Operating Activities
Receipts from customers
Payments for exploration and evaluation
Note
2022
$
Restated *
2021
$
63,632,509
29,825,353
(2,254,482)
(4,223,995)
Payments to suppliers, contractors and employees
(54,991,164)
(15,561,074)
Research and development tax offsets received
Other income
Interest received
154,052
391,976
58,486
438,919
342,158
88,535
Net cash flows provided operating activities
22
6,991,377
10,909,896
Cash Flows from Investing Activities
Payment for security deposit
-
(3,000,000)
Payment for purchase of business net of cash acquired
26
(5,205,000)
(5,444,682)
Payments for property, plant and equipment
Payment for mine development assets
Payments for exploration and evaluation
(1,241,172)
(3,429,024)
(8,535,020)
(5,817,608)
(5,816,312)
(5,884,621)
Net cash flows used in investing activities
(20,797,504)
(23,575,935)
Cash Flows from Financing Activities
Proceeds from issue of shares and other equity securities
1,041
25,081,781
Share issue expenses
Repayment of borrowings
Lease payments
-
706,671
(477,028)
(719,208)
802,595
-
Joint venture exploration advances received
Joint venture exploration advances expended
16
16
9,019,797
5,614,506
(7,720,324)
(5,930,614)
Net cash flows provided from financing activities
1,530,157
24,849,060
Net (decrease)/increase in cash and cash equivalents
(12,275,970)
12,183,021
Cash and cash equivalents at the beginning of the financial year
30,518,541
18,335,520
Cash and cash equivalents at the end of the financial year
9
18,242,571
30,518,541
*Refer Note 34 for detailed information on restatement of comparative.
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 2022
31
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
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
33.
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 2022 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 2022
32
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
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 should be 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 2022
33
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
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 should
be 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 2022
34
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Rehabilitation provision
In accordance with the Group’s environmental policy and applicable legal requirements, a
provision for rehabilitation is recognised in respect of the estimated cost of rehabilitation and
restoration of the areas disturbed by mining activities up to the reporting date, but not yet
rehabilitated.
When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying
amount of the related mining assets. At each reporting date the site rehabilitation provision is re-
measured to reflect any changes in discount rates and timing or amounts to be incurred.
Additional disturbances or changes in rehabilitation costs will be recognised as additions or
changes to the corresponding asset and rehabilitation provision, prospectively from the date of
change. For closed sites, or where the carrying value of the related asset has been reduced to nil
either through depreciation and amortisation or impairment, changes to estimated costs are
recognised immediately in the statement of comprehensive income.
(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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
35
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
36
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
(r)
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
37
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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% or unit of production
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
38
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
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.
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.
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 2022. 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.
(x)
(y)
(z)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
39
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(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.
(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 development 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.
(ad) Right of use asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is
measured at cost, which comprises the initial amount of the lease liability, adjusted for, as
applicable, any lease payments made at or before the commencement date net of any lease
incentives received, any initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and removing the
underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease
or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity
expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is
over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
40
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease
liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease
payments on these assets are expensed to profit or loss as incurred.
(ae) Lease liability
A lease liability is recognised at the commencement date of a lease. The lease liability is initially
recognised at the present value of the lease payments to be made over the term of the lease,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined,
the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed payments
less any lease incentives receivable, variable lease payments that depend on an index or a rate,
amounts expected to be paid under residual value guarantees, exercise price of a purchase
option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are
expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying
amounts are remeasured if there is a change in the following: future lease payments arising from a
change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option
and termination penalties. When a lease liability is remeasured, an adjustment is made to the
corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is
fully written down.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
41
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
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(m). 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.
Inventories
Net realisable value tests are performed at each reporting date and represent the estimated
forecast sales price of the gold when it’s expected to be realised, less estimated costs to complete
production and bring the product to sale. Stockpiles are measured by estimating the number of
tonnes added and removed from the stockpile, the number of contained gold ounces based on
assay data, and the estimated recovery percentage. Stockpile tonnages are verified by periodic
surveys.
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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
42
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
2.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (continued)
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.
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.
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 2022, $63.4 million segment revenues from two customers
amounted to $32.2 million and $31.2 million respectively (prior period: one customer amounting to
$26.3 m), arising from the sale of gold and silver. No other single customer contributed 10% or more
to the Group's revenue for the year.
Geographical information
The consolidated entity is one geographical segment, Australia.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
43
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
3.
Operating segments (continued)
Operating segment information
Consolidated - 30 June 2022
Exploration
Mining Operations
$
$
Total
$
Sales to external customers
-
63,330,429
63,330,429
Other revenue
366,537
179,491
546,028
Total segment revenue
366,537
63,509,920
63,876,457
Interest revenue
Total segment revenue
Unallocated revenue
Total revenue
39,986
18,500
58,486
406,523
63,528,420
63,934,943
5,000,000
68,934,943
EBITDA
(2,960,161)
10,336,387
7,376,226
Depreciation & amortisation
Interest revenue
Unallocated revenue
Profit before income tax benefit
Income tax benefit
Profit after income tax benefit
Assets
Segment Assets
Total Assets
Total assets includes:
(10,343,214)
58,486
5,000,000
2,091,498
-
2,091,498
29,747,645
49,791,161
79,538,806
79,538,806
Acquisition of non-current assets
1,093,213
1,299,790
2,393,003
Liabilities
Segment liabilities
Total liabilities
3,943,131
17,875,399
21,818,530
21,818,530
Total
$
Consolidated - 30 June 2021
Exploration
Mining Operations
$
$
Sales to external customers
-
28,508,849
28,508,849
Other revenue
776,080
4,997
781,077
Total segment revenue
776,080
28,513,846
29,289,926
Interest revenue
Total revenue
88,535
-
88,535
864,615
28,513,846
29,378,461
EBITDA
(5,908,666)
11,912,068
6,003,402
Depreciation & amortisation
Interest
Profit before income tax benefit
Income tax benefit
Profit after income tax benefit
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
(5,157,192)
88,535
934,745
-
934,745
44
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
3.
Operating segments (continued)
Assets
Segment Assets
Total Assets
Total assets includes:
36,269,416
46,538,086
82,807,502
82,807,502
Acquisition of non-current assets
-
13,156,011
13,156,011
Liabilities
Segment liabilities
Total liabilities
3,084,701
24,540,364
27,625,065
27,625,065
4.
Revenue
From Continuing Operations
Sale of gold
Sale of silver
Revenue is recorded at a point in time once goods are transferred.
5.
Other income
Research and development tax offset recovery
Government grants
Administration recovery fees
Other
Contingent consideration derecognised(i)
2022
$
2021
$
62,637,209
28,213,942
693,220
294,907
63,330,429
28,508,849
2022
$
154,052
-
212,485
179,491
5,000,000
5,546,028
2021
$
438,919
67,500
268,069
6,589
-
781,077
(i)
Contingent consideration estimated at the date of acquisition of the Henty Gold Mine
did not become payable, as the criteria for payment were not met and accordingly the
amount has been derecognised through the profit and loss in the current period.
6.
Expenses
Loss before income tax includes the following specific
expenses:
Depreciation
Directors’ fees
Amortisation
Share based payments
2022
$
2021
$
3,486,773
937,670
750,888
478,603
6,856,441
4,406,304
446,341
-
Exploration and evaluation expenditure (refer note 1(l))
2,785,359
4,223,995
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
45
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
7.
Earnings per Share
Profit after income tax
Weighted average number of ordinary shares for basic earnings
per share
Adjustments for calculation of diluted earnings per share:
2022
No. of Shares
Restated *
2021
No. of Shares
2,091,498
934,745
98,391,985
89,771,426
Options over ordinary shares
250,000
7,881,996
Weighted average number of ordinary shares for diluted earnings
per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
*Refer Note 34 for detailed information on restatement of comparative.
8.
Income tax
Profit before tax
Prima facie tax on operating loss before income tax at 30%
(2021: 26%)
Tax effect of:
- non assessable items
- Capital raising costs
- Temporary differences and tax losses not brought to
account as a deferred tax balance
Income tax expense reported in income statement
Unrecognised deferred tax
Deferred tax assets have not been recognised in respect of
the following items
Prepayments
Property, plant and equipment
Exploration Expenditure
Mining Development Assets
Right of use assets
Provisions and accrued expenses
Other advances / provisions
Tax deductibility for capital raising costs
Revenue Losses
Capital Losses
98,641,985
97,653,422
2.13
2.12
2022
$
1.04
0.96
2021
$
1,667,084
500,125
742,748
193,114
(1,505,088)
(125,976)
(49,347)
(46,440)
1,054,310
(20,698
-
-
2022
$
2021
$
(98,349)
(2,866,254)
748,426
(20,942)
(5,252,267)
(2,997,068)
(6,459,269)
1,645
408,993
630,312
592,232
-
-
1,058,731
-
670,727
18,747,074
5,564,797
250,807
217,366
5,954,924
5,242,037
The Group has $62,490,248 (2021: $21,403,064) tax losses arising in Australia that are available
indefinitely for offset against future profit of the companies in which the losses arose.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
46
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
8.
Income tax (continued)
The potential deferred tax asset of $5,954,924 (2021: $5,242,037), 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.
9.
Cash and cash equivalents and other financial assets
Cash and cash equivalents
Cash at bank
Cash on deposit
Other financial assets
Security deposit (cash on deposit)
2022
$
Restated *
2021
$
18,132,571
30,408,541
110,000
110,000
18,242,571
30,518,541
3,000,000
3,000,000
3,000,000
3,000,000
The cash at bank includes $2,162,673 (2021: $510,301) 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).
*Refer Note 34 for detailed information on restatement of comparative.
10.
Trade and other receivables
Current
Trade debtors
GST receivable
Prepayments
Other
Non-current
Environmental Rehabilitation Bond
2022
$
2021
$
-
361,772
2,028,763
1,040,758
3,431,293
344,257
187,846
1,481,653
802,398
2,816,154
36,500
36,500
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
47
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
11.
Inventories
Gold stocks – ore stockpiles and gold in circuit
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
Right of use asset – at cost
Less: accumulated depreciation
2022
$
2021
$
3,177,296
2,528,530
1,532,162
2,366,433
5,705,826
3,898,595
2022
$
Restated *
2021
$
1,547,775
(43,846)
1,503,929
770,000
(21,923)
748,077
12,966,538
12,538,203
(3,404,987)
(904,378)
9,561,551
11,633,825
260,594
(139,444)
121,150
-
-
11,186,630
12,381,902
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 30 June 2020
Additions
Additions through business combination *
Restated
Land and
Buildings
Plant and
equipment
Right of use
asset
$
$
-
96,867
-
3,429,024
$
-
-
Total
$
96,867
3,429,024
770,000
8,999,212
-
9,769,212
Depreciation expense * Restated
(21,923)
(891,278)
-
(913,201)
Balance at 30 June 2021 * Restated
748,077
11,633,825
-
12,381,902
Additions
799,698
1,332,713
260,594
2,393,005
Additions through business combination
-
-
-
-
Depreciation expense
(43,846)
(3,404,988)
(139,443)
(3,588,275)
Balance at 30 June 2022
1,503,929
9,561,550
121,151
11,186,630
Additions to the right-of-use assets during the year were $260,594.
The consolidated entity leases land and buildings for its offices with, in some cases, options to
extend.
The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
*Refer Note 34 for detailed information on restatement of comparative.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
48
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
13.
Exploration and evaluation expenditure
Opening balance
Additions
Additions through business combination
Closing balance
2022
$
11,432,459
6,075,098
Restated *
2021
$
5,547,838
5,884,623
-
-
17,507,557
11,432,461
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.
*Refer Note 34 for detailed information on restatement of comparative.
14.
Mining Development Assets
Capitalised mine development
Opening Balance
Additions
Additions through business combination (Note 26)
Amortisation Expenses
Closing balance
*Refer Note 34 for detailed information on restatement of comparative.
15.
Trade and other payables
Current Payables
Trade creditors
Accruals
2022
$
Restated *
2021
$
20,428,429
18,749,849
18,749,849
-
8,535,021
5,817,608
-
17,338,545
(6,856,441)
(4,406,304)
20,428,429
18,749,849
2022
$
2021
$
7,365,776
4,636,924
5,312,075
6,327,970
12,002,700
11,640,045
Included in the current payables is an aggregate amount of $918,679 (2021: $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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
49
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
16.
Advances
2022
$
2021
$
Opening Balance of Advance from Joint Venture Partners
215,526
531,634
Advances received from Joint Venture Partners
Exploration expenditure
9,019,797
5,614,506
(7,720,324)
(5,930,614)
Closing Balance of Advance/(Receivable) from Joint
Venture Partners
1,514,999
215,526
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
Movement during the period
Closing balances
2022
$
639,760
123,979
763,739
2022
$
802,610
706,671
1,509,281
2021
$
224,794
220,063
444,857
2021
$
-
802,610
802,610
Interest bearing liabilities relate to insurance premium funding which is repayable by February
2023. An interest rate of 3.45% applies.
19.
Employee benefits
Current
Non – current
Provision for employee benefits
2022
$
1,589,103
711,018
2,300,121
2,300,121
2,300,121
2021
$
604,350
-
604,350
604,350
604,350
Amounts not expected to be settled within the next 12 months
The current provision for employee benefits includes all unconditional entitlements where
employees have completed the required period of service and also those where employees
are entitled to pro-rata payments in certain circumstances. The entire amount is presented as
current, since the consolidated entity does not have an unconditional right to defer settlement.
However, based on past experience, the consolidated entity does not expect all employees to
take the full amount of accrued leave or require payment within the next 12 months.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
50
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
20.
Contributed Equity
(a) Share capital
Ordinary shares
Fully paid
Note
2022
Number
2022
$
2021
Number
2021
$
20©
98,456,148 73,080,738
98,295,723 72,754,897
(b) Other equity securities
Options – Listed
20(d)
-
157,785
7,881,996
157,785
Total contributed equity
73,238,523
72,912,682
(c) Movements in Ordinary
Shares
Details
Balance at 30 June 2020
Issue of shares –
Exercise of listed options
Issue of shares -
Number of
Shares
82,399,646
Issue
Price
$
41,192,324
52
$2.45
127
Exercise of unlisted options
1,000,000
$1.00
1,000,000
Issue of shares –
Share Placement
14,896,025
$2.10 31,281,653
Capital raising expenses
-
-
(719,207)
Balance at 30 June 2021
98,295,723
72,754,897
Issue of shares –
Issue to directors
Issue of shares –
Issue to consultant
Issue of shares –
135,000
$2.03
274,050
25,000
$2.03
50,750
Exercise of listed options
Balance at 30 June 2022
425
$2.45
1,041
98,456,148
73,080,738
Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the
winding up of the company in proportion to the number of and amounts paid on the shares
held. The fully paid ordinary shares have no par value and the company does not have a
limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have
one vote and upon a poll each share shall have one vote.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
51
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
20.
Contributed Equity (continued)
(d) Movements in Options -
Listed
Details
Balance at 30 June 2020
Issue of options –
Entitlement offer
Exercise of options
Balance at 30 June 2021
Issue of options –
Entitlement offer
Exercise of options
Lapse of options
Balance at 30 June 2022
Issue
Price
-
-
-
-
Number of
Options
7,882,048
-
(52)
7,881,996
-
(425)
(7,881,571)
-
$
157,785
-
-
157,785
-
-
-
157,785
(e)
Share based payment reserve
Details
Number of
Options
Issue
Price
$
Balance at 30 June 2021
Issue of options –
To former CEO (EIS)
Balance at 30 June 2022
(f) Capital risk management
-
-
372,912
250,000
250,000
$0.48
120,500
493,412
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 2022
52
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
20.
Contributed Equity (continued)
(g) Details of subsidiaries
Details of the Group’s subsidiaries at 30 June 2022 are:
Name of subsidiary
Principal activity
Place of
incorporation
and
operation
Proportion of ownership
interest and voting power
held
2022
2021
Silkfield Holdings Pty
Ltd
Mineral Exploration
Australia
100%
100%
Kite Gold Pty Ltd
Mineral Exploration
Australia
Kite Operations Pty Ltd Mineral Exploration
Australia
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%
100%
100%
Henty Gold Pty Ltd
Gold Ore
Production
Australia
100%
100%
Four Eagles JV
Property Pty Ltd
Property
Australia
50%
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
2022
$
372,972
120,500
493,472
Restated *
2021
$
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
Profit for the year
Balance at the end of the year
(18,103,217)
(19,037,962)
2,091,498
934,745
(16,011,719)
(18,103,217)
*Refer Note 34 for detailed information on restatement of comparative.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
53
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
22.
Notes to the Cash Flow Statement
(a) Reconciliation of net cash used in operating activities
to operating loss after income tax
Operating profit after tax
2,091,498
934,745
2022
$
Restated *
2021
$
Add non-cash items:
Depreciation
Depreciation and amortisation relating to gold sales
Share based payments
Derecognised contingent consideration
Changes in net assets and liabilities
(Increase)/decrease in receivables
(Increase)/decrease in inventory
(Decrease)/increase in payables
Net cash provided/(used) in operating activities
*Refer Note 34 for detailed information on restatement of comparative.
23.
Deferred and contingent consideration payable
Deferred consideration payable (refer to note 26)
Contingent consideration payable (refer to note 26)
Deferred consideration payable (refer to note 26)
2,018,757
8,324,457
445,300
(5,000,000)
(641,639)
(1,807,231)
1,560,237
6,991,377
750,888
4,406,304
-
-
1,316,506
(433,310)
4,706,901
9,553,345
2022
$
-
-
800,000
800,000
Restated *
2021
$
5,205,000
5,000,000
800,000
11,005,000
The conditions relating to the payment of contingent considerations were not met and this
amount was derecognised to the profit and loss (refer to note 5).
*Refer Note 34 for detailed information on restatement of comparative.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
54
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
24.
Related Party Disclosures
Parent entity
Catalyst Metals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 20.
Key management personnel
Disclosures relating to key management personnel are set out in the remuneration report
included in the directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Key management personnel remuneration
Short-term employee benefits
Share Based Payment
Post-employment benefits
2022
$
1,411,147
414,850
134,238
1,960,235
2021
$
1,000,586
-
92,390
1,092,976
Detailed remuneration disclosures are provided in the Remuneration Report section of the
Director’s Report.
Payment for services from Raisemetrex Pty Ltd (director-
related entity of Mr Stephen Boston)
2022
$
60,000
2021
$
60,000
60,000
60,000
Receivable from and payable to related parties
There are no outstanding receivables and payables at the reporting date in relation to
transactions with related parties.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
25.
Share Based Payments
Employee Incentive Plan
Equity incentives (shares or options or performance rights over shares) in the Company can be
granted to eligible employees and officers of the Group under the Catalyst Metals Limited
Employee Incentive Plan (“Incentive Plan”). The number of equity incentives that can be
issued under the plan cannot exceed 5% of the total number of shares on issue. The terms and
conditions of the equity incentives issued under the plan are at the discretion of the Board.
There were no equity incentives issued during the current period and previous year under the
employee incentive plan.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
55
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
25.
Share Based Payments (continued)
Options issued
During the year the Company issued 250,000 options to key management personnel of the
Company as part of their remuneration package for FY2022.
2022
2021
Number of
Options
Weighted
Average
Exercise
Price
$
Number of
Options
Weighted
Average
Exercise
Price
$
Opening amounts
Issued during the year
Exercised during the year
Closing amount
-
250,000
-
250,000
-
$3.00
-
$3.00
1,000,000
(1,000,000)
-
$1.00
$1.00
-
2022
Issue date
Expiry date
Balance at
start of
year
22 Oct 2021
30 Nov 2024
-
Number
issued
during
year
250,000
Exercise
Price
$3.00
Number
exercised
during year
Number
expired
during
year
Balance
at end of
year
Number
exercisable
at end of
year
-
-
250,000
250,000
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
Number
exercisable
at end of
year
Balance at
end of year
- 1,000,000
-
-
-
Exercise
Price
$1.00
The weighted average share price during the financial year was $2.03 (2021: $2.03).
The weighted average remaining contractual life of options outstanding at the end of the
financial year was 2.6 years (2021: nil).
The fair value of the equity-settled share options granted is estimated as at the grant date using
a Hoadley ESO2 option valuation model taking into account the terms and conditions upon
which the options were granted, as follows for the year ended 30 June 2022:
Number
Expected volatility (%)
Risk-free interest rate (%)
Exercise price (cents)
Grant date share price (cents)
Vesting date
Valuation
Total value
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
$3.00
Options
250,000
50.0%
0.67%
$3.00
$2.08
20/10/2021
$0.48
$120,500
56
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
25.
Share Based Payments (continued)
Directors Shares
Mr Kay and Mr Schwab were issued 75,000 shares and 60,000 shares respectively for the significant
additional services they provided during the Henty Gold Mine acquisition process. Mr Schwab was
issued 10,000 shares for the consulting services rendered. The shares were valued at $2.03, being the
closing price on 12 November 2021, when the issue of the shares was approved by shareholders.
No shares were issued as compensation during the previous financial year.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
57
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
26.
Business Combination
On 20 January 2021, the group acquired 100% of the shares and voting rights in Unity Mining
Mining Pty Ltd and its 100% owned subsidiary, Henty Gold Mine Pty Ltd (the entity that owned the
Henty Gold Mine asset). Henty Gold Mine is an underground 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.
As at 30 June 2021, the acquisition had been accounted for as a business combination. The
business combination had been accounted for on a provisional basis. In the current reporting
period, the remeasurement of the consideration paid/payable and fair value of assets and
liabilities acquired have been finalised. As a consequence of finalising the acquisition amounts,
the following balances previously reported on a provisional basis have been restated.
Cash
Receivables
Inventories
Property, plant & equipment
Exploration – mining rights
Mining development assets
Payables
Provisions
Deferred tax asset
Deferred tax liability
Provisional
Amount
$
555,318
1,741,007
3,465,285
2,654,329
1,137,111
3,708,538
(2,743,139)
(3,329,300)
Measurement
Period
Adjustments
$
Finalised Fair
Value
$
(247,650)
307,668
(51,968)
1,689,039
(192,077)
3,273,208
7,114,883
9,769,212
(1,137,111)
-
13,630,007
17,338,545
(2,361,192)
(5,104,331)
9,423
(3,319,877)
-
-
2,021,018
2,021,018
(2,021,018)
(2,021,018)
Fair value of tangible net assets acquired
7,189,149
16,764,315
23,953,464
Exploration and evaluation expenditure
17,810,851
(17,810,851)
-
Fair value of consideration
25,000,000
(1,046,536)
23,953,464
Representing
Catalyst Limited Shares issued to vendor (1)
Cash consideration paid
Deferred share consideration (2)
Deferred cash consideration (3)
Contingent consideration payable (4)
Cash used to acquire business, net of cash acquired:
Acquisition date fair value of cash consideration
Less: cash acquired
Less: payments made in prior year
Net cash outflow
n A$ f
air value
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
7,200,000
6,000,000
800,000
6,000,000
5,000,000
-
7,200,000
(1,046,536)
4,953,464
-
-
-
800,000
6,000,000
5,000,000
25,000,000
(1,046,536)
23,953,464
10,953,464
(307,668)
(5,440,796)
5,205,000
58
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
26.
Business Combination (continued)
(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 a value of $800,000
(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 is calculated as the lesser of $5,000,000 or 50% of cashflow to equity
generated by Henty Gold Mine in the initial 12 months post acquisition. The payment of contingent
consideration will occur as soon as practicable 12 months after acquisition. At the date of acquisition
management assessed the probability of the payment as probable.
27.
Provisions
Current
Non - current
Provision for rehabilitation
2022
$
-
2021
$
-
2,927,690
2,927,690
2,912,677
2,912,677
2,927,690
2,927,690
2,912,677
2,912,677
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.
See note 1(o) for the accounting policy.
Movement in provisions
Movements in each class of provision during the current financial year are set out below:
Carrying amount at the start of the year
Additional provisions recognised
Amounts transferred from non-current
Carrying amount at the end of the year
28.
Auditor’s Remuneration
Rehabilitation
2,912,677
15,013
-
2,927,690
During the financial year the following fees were paid or payable for services provided by RSM
Australia Partners, the auditor of the company, its network firms and unrelated firms:
Audit or review of the financial statements
Other services – audit of joint venture financial statements
2022
$
107,750
20,900
128,650
2021
$
59,500
17,000
76,500
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
59
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
29.
Commitments
There were no outstanding commitments, which are not
disclosed in the financial statements as at 30 June 2022
other than:
(a) Tenement commitments
No later than 1 year
Later than 1 year but not later than 5 years
2022
$
2021
$
1,526,925
1,148,800
2,675,725
1,461,750
-
1,461,750
30.
Financial Instruments
Notes
Interest
Rate
1 year or
less
Over 1-5
years
$
Non-interest
bearing
Total
$
$
$
2022
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
9
0.29%
21,242,571
-
-
-
-
21,242,571
-
-
10
15
16
17
23
18
4.16%
(639,760)
(123,979)
-
-
-
-
-
-
21,242,571
1,550,471
1,550,471
1,550,471
22,793,042
(12,002,700)
(12,002,700)
(1,514,999)
(1,514,999)
-
(800,000)
(763,739)
(800,000)
3.45%
(1,509,281)
-
-
(1,509,281)
Total financial liabilities
(2,149,041)
(123,979)
(14,317,699)
(16,590,719)
Net financial assets
19,093,530
(123,979)
(12,767,228)
6,202,323
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
60
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
30.
Financial Instruments (continued)
Notes
Interest
Rate
1 year or
less
Over 1-5
years
$
Non-interest
bearing
Total
$
$
$
9
10
15
16
17
23
18
0.5%
33,518,541
-
-
-
-
33,518,541
-
-
-
-
-
-
-
5%
(224,794)
(220,063)
-
33,518,541
1,344,653
1,344,653
1,344,653
34,863,194
(11,640,045)
(11,640,045)
(215,526)
-
(215,526)
(444,857)
(11,005,000)
(11,005,000)
2.7%
(802,610)
-
-
(802,610)
(1,027,404)
(220,063)
(22,860,571)
(24,108,038)
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
Net financial assets
32,491,137
(220,063)
(21,515,918)
10,755,156
Reconciliation of net financial assets to net assets
Net Financial Assets
Property, plant & equipment
Exploration expenditure
Capitalised development
Prepayments
Inventory
Employee benefits
Provisions
Net Assets
2022
$
2021
$
6,202,323
11,186,630
17,507,557
20,428,429
1,917,322
5,705,826
(2,300,121)
(2,927,690)
10,755,156
12,381,902
11,432,461
18,749,849
1,481,501
3,898,595
(604,350)
(2,912,677)
57,720,276
55,182,437
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
61
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
30.
Financial Instruments (continued)
Financial risk Management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including
foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The consolidated
entity's overall risk management program focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the financial performance of the consolidated
entity. The consolidated entity uses derivative financial instruments such as forward foreign
exchange contracts to hedge certain risk exposures. Derivatives are exclusively used for hedging
purposes, i.e. not as trading or other speculative instruments. The consolidated entity uses
different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing
analysis for credit risk and beta analysis in respect of investment portfolios to determine market
risk.
Risk management is carried out by senior finance executives ('finance') under policies
approved by the Board of Directors ('the Board'). These policies include identification and
analysis of the risk exposure of the consolidated entity and appropriate procedures, controls
and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated
entity's operating units. Finance reports to the Board on a monthly basis.
Market Risks
Interest rate risks
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 or fixed rate. The Group does not
engage in any hedging or derivative transactions to manage interest rate risk.
Interest rate sensitivity
At 30 June 2022, 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 $227,302 (2021:
$324,911) 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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
62
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
30.
Financial Instruments (continued)
Price risk
The consolidated entity is exposed to commodity price risk arises from gold and other metals
held as sales.
The policy of the consolidated entity is to sell gold and other metals at the spot price and it has
not entered into any hedging contracts. The consolidated entity's revenues were exposed to
fluctuation in the price of these metals. If the average selling price of gold of $2,529/oz (2021:
$2,315/0z) for the financial year had increased/decreased by 10% the change in the profit before
income tax for the consolidated group would have been an increase /decrease of $5,965,581
(2021: $2,633,220).
31.
Contingent Liabilities and Contingent Assets
The Group does not have any contingent liabilities or contingent assets at 30 June 2022.
32.
Subsequent Events
On 27 September 2022 the Company released an updated Resource and Reserve statement
which showed that Mineral Resources at the Henty Gold Mine had increased by 10% after
accounting for FY22 production. Mineral Reserves for 30 June 2022 were 2.6Mt at 4.3g/t for
368,000oz Au (refer to Additional Information in this Annual Report).
No further significant events have occurred since the end of the financial year.
33.
Parent Entity Disclosure
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Contributed equity
Share based payments reserve
Accumulated losses
Total equity
2022
$
Restated *
2021
$
8,262,289
22,709,001
58,121,672
60,233,579
860,640
415,131
860,640
415,131
73,238,523
493,472
(16,470,963)
72,912,682
372,972
(13,467,205)
57,261,032
59,818,448
Profit (loss) for the year
(3,003,757)
(3,043,199)
Total comprehensive profit (loss)
(3,003,757)
(3,043,199)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
63
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
33.
Parent Entity Disclosure (continued)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June
2022 and 30 June 2021.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity,
as disclosed in note 1, except for the following:
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent
entity;
Investments in joint ventures are accounted for at cost, less any impairment, in the
parent entity; and
Dividends received from subsidiaries are recognised as other income by the parent
entity and its receipt may be an indicator of an impairment of the investment.
34.
Restatement of comparative and balances
The restatement of comparative balances comprises:
During the period the Company completed the Purchase Price Accounting (PPA) for
the Henty acquisition (refer to note 26), which had been reported on a provisional basis
as at 30 June 2021. The finalisation of the PPA resulted in the restatement of certain 30
June 2021 balances.
The reclassification of security deposits, which had previously been disclosed as cash
and cash equivalents to other financial assets.
Cash and cash equivalents
Other financial assets
Property, plant and equipment
Exploration and evaluation assets
Mining development assets
Total assets
Deferred consideration payable
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Reported at 30
June 2021
$
Effect of PPA
$
Restated
$
33,518,541
-
5,814,969
30,001,347
(3,000,000)
3,000,000
6,566,933
(18,568,886)
30,518,541
3,000,000
12,381,902
11,432,461
6,505,722
82,565,328
12,244,127
242,174
18,749,849
82,807,502
6,000,000
28,420,065
(795,000)
5,205,000
(795,000)
27,625,065
54,145,263
1,037,174
55,182,437
72,912,682
372,972
(19,140,391)
-
-
1,037,174
72,912,682
372,972
(18,103,217)
54,145,263
1,037,174
55,182,437
No restatement occurred to the Statement of Financial Position as at 1 July 2020.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
64
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2022
Statement of comprehensive income
Reported at 30
June 2021
$
Effect of PPA
$
Restated
$
Mining & Processing costs
Depreciation & amortisation relating to gold sales
Depreciation
(13,737,990)
(1,663,872)
(744,327)
3,786,167
(2,742,432)
(6,561)
(9,951,823)
(4,406,304)
(750,888)
Loss before tax
Income tax benefit
Net loss for the period
(102,429)
-
(102,429)
1,037,174
-
1,037,174
934,745
-
934,745
Total comprehensive loss for the period
(102,429)
1,037,174
934,745
Cash Flows from Operating Activities
Payments to suppliers, contractors and
employees
Net cash flows from operating activities
Cash Flows from Investing Activities
Payment for security deposit
Payment for mine development assets
Reported at 30
June 2021
$
Effect of
Restatement
$
Restated
$
(16,917,625)
9,553,345
1,356,551
1,356,551
(15,561,074)
10,909,896
-
(4,461,057)
(3,000,000)
(1,356,551)
(3,000,000)
(5,817,608)
Net cash flows used in investing activities
(19,219,384)
(4,356,551)
(23,575,935)
Net increase in cash and cash equivalents
15,183,021
(3,000,000)
12,183,021
Cash and cash equivalents at the beginning of the
financial year
Cash and cash equivalents at the end of the
financial year
21,335,520
(3,000,000)
18,335,520
33,518,541
(3,000,000)
30,518,541
Earnings per Share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Reported at 30
June 2021
$
(0.1)
(0.1)
Restated
$
1.04
0.96
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
65
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 Australian 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 2022
and of its performance for the year then ended;
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 Company will be able to pay its debts as and
when they become due and payable.
2.
3.
4.
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 2022
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2022
66
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 2022, 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 2022 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
Carrying value of Capitalised exploration and evaluation expenditure
Refer to Note 13 in the financial statements
As at 30 June 2022, the Group has capitalised
exploration and evaluation expenditure with a
carrying value of $17,507,557.
We determined 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 expenditure can be
associated with finding specific mineral resources
and the basis on which that expenditure is allocated
to an area of interest;
• Determination of whether exploration activities
have progressed to the stage at which the existence
of an economically recoverable mineral reserve may
be assessed; and
• Assessing whether any indicators of impairment
are present and, if so, judgments applied to
determine and quantify any impairment loss.
Our audit procedures included:
• Assessing
the Group’s accounting policy
for
compliance with Australian Accounting Standards;
• On a sample basis, testing that the Group has valid
rights to explore in the specific areas of interest;
• Agreeing, on a sample basis, additions to supporting
documentation and assessing whether the amounts
may be capitalised and relate to the specific areas of
interest;
• Evaluating management’s assessment
that no
indicators of impairment existed for those tenements
where the Group has current rights of tenure;
• Assessing management’s
that
exploration and evaluation activities have not yet
reached a stage where the existence or otherwise of
economically recoverable reserves may be reasonably
determined; and
determination
• Enquiring with management and reading budgets and
other documentation as evidence that active and
significant operations in, or relation to, the areas of
interest will be continued in the future.
Key audit matter
How our audit addressed this matter
Carrying value of Mining development assets
Refer to Note 14 in the financial statements
At 30 June 2022, the Group has Mining
development assets with a carrying value of
$20,428,429.
Our audit procedures included:
• Assessing
the Group’s accounting policy
for
compliance with Australian Accounting Standards;
We considered this to be a key audit matter due to
the significant judgement and estimates used by
management in measuring the carrying value of
these assets.
Areas of judgement include
• Determining the fair value of Mine development
assets acquired in relation to the Henty Mine
business combination (refer KAM below);
• Application of the units of production method in
determining the amortisation charge. This
includes determining the appropriate mine
reserve estimate and the cost allocation
attributable to each asset;
• Allocating mining development costs including
expenditure incurred to develop new ore bodies
to define further mineralisation in existing ore
bodies, to expand the capacity of the mine and
to maintain production; and
• Assessing whether any indicators of impairment
are present.
• Agreeing acquisition
the Mine
development assets to the finalised purchase price
allocation;
fair value of
the Mine development asset
• On a sample basis, agreeing additions during the year
to
to supporting
documentation and evaluating whether the amounts
were capital
to mining
development activities;
in nature and
related
• Evaluating management’s amortisation model and
agreeing key inputs such as production costs and
production outputs to supporting information. This
included evaluating
the work performed by
management’s expert with respect to the Life of Mine
Plan and the mine reserve estimate and included
assessing the competency and objectivity of the
expert;
• Testing the mathematical accuracy of the amortisation
rates applied and resulting amortisation charge;
• Critically evaluating management’s assessment that
no indicators of impairment existed; and
• Assessing the disclosures in the financial statements.
Key audit matter
How our audit addressed this matter
Accounting for the acquisition of the Henty Mine
Refer to Note 26 in the financial statements
The Group acquired 100% of the shares and voting
right in Unity Mining Pty Ltd and its 100% owned
subsidiary, Henty Gold Mine Pty Ltd on 20 January
2021.
The acquisition was determined to be a business
combination during the 30 June 2021 year end and
was accounted for on a provisional basis as at 30
June 2021.
the business
The measurement period
combination ended during the year ended 30 June
2022 and comparative balances have been restated
as set out in Note 34.
for
finalisation of
the business combination
The
accounting for this acquisition is a key audit matter
due to the material nature of the acquisition, the
related management estimates and judgements
associated with finalising the identification and
measurement of
the purchase
consideration and assets and liabilities acquired.
fair value
the
Our audit procedures included:
• Assessing the Group’s account policy for compliance
with the Australian Accounting Standards;
• Reading the purchase agreement and other associated
the
documents
transaction and the related accounting considerations;
to obtain an understanding of
• Testing
the determination of
fair value of
consideration payable, including evaluating the basis
for measuring contingent consideration;
the
• Assessing the methods, assumptions and data utilised
in determining the fair value of assets and liabilities
acquired, including evaluating the work performed by
management’s experts and the competency and
objectivity of the expert; and
• Assessing the disclosures in the financial statements,
including the restatement of comparative balances.
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 2022, 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 2022.
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.
RSM AUSTRALIA PARTNERS
Perth, Western Australia
30 September 2022
MATTHEW BEEVERS
Partner
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
The following information was reflected in the records of the Company as at 23 September 2022.
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
Number of holders
Fully paid
shares
Unlisted
options
560
508
168
275
82
1,593
279
1
1
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
Chepalix 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.
17.
Lindway Investments Pty Ltd
Bayeux Investments Pty Ltd
18. Gavin Caudle
19.
20.
Roger George Davis
John Paul Sisterson
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
9,751,813
7,650,000
6,781,430
4,467,270
2,960,999
2,672,842
2,183,843
2,066,135
1,428,571
1,373,625
1,285,349
1,208,921
1,047,619
952,198
814,779
797,092
786,561
709,255
12.89
12.69
7.49
5.89
5.39
%
12.89
12.37
9.90
7.77
6.89
4.54
3.01
2.71
2.22
2.10
1.45
1.40
1.31
1.23
1.06
0.96
0.83
0.81
0.80
0.72
73,808,524
74.97
72
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Unquoted securities
The following classes of unquoted securities are on issue:
Security
Options over fully paid shares exercisable:
Holders of greater than 20% of each class of
security
Number
on issue Name of holder
Number
%
- at $3.00 each on or before 30.11.24
250,000 Bruce Robertson and Fiona
250,000 100.0
Robertson
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
3,428,572
Number
Corporate governance statement
The Company’s 2022 corporate governance statement can be viewed at
https://catalystmetals.com.au/about-catalyst/corporate-governance/
73
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
EL5490, EL5449
ML 7M/1991, ML 5M/2002,
ML 7M/2006, EL28/2001,
EL8/2009
100% (farm-out of 50% interest)
100%
100%
100%
100%
50.1%
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.
74
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Mineral resources statement for Henty Gold Mine
In September 2022, CSA Global Pty Ltd (CSA Global) was commissioned by Catalyst Metals to prepare a
Mineral Resource Estimate (MRE) for the Henty Gold Mine in Tasmania. The MRE has been reported in
accordance with the JORC 2012 Code.
The Company’s Mineral Resource estimate for the Henty Gold Mine as at 30 June 2022 is detailed below.
JORC Classification
Tonnage (Mt)
Au (g/t)
Ounces (koz)
Indicated
Inferred
Total
1.8
0.9
2.6
4.5
4.0
4.3
257
111
368
Notes on Henty JORC 2012 Mineral Resources: The Resource estimate was prepared by CSA Global based on data up to 30 June
2022. 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.
The Company’s Mineral Resource estimate for the Henty Gold Mine as at 30 June 2021was below.
JORC Classification
Tonnage (Mt)
Au (g/t)
Ounces (koz)
Indicated
Inferred
Total
1.6
0.8
2.4
4.3
4.2
4.3
225
109
334
The Company’s Mineral Resource estimate for the Henty Gold Mine as at 30 June 2022 represents an
increase by more than 10% to 368,000oz at 4.3 g/t after accounting for depletion from FY22 production.
Competent Person’s Statement for JORC 2012 Mineral Resource Estimate
The Henty Resource estimation in this report was prepared by Ms Millicent Canisius, a Competent Person,
who is an employee of CSA Global Pty Ltd, a Member of the Australasian Institute of Geoscientists (#3725)
and a Member of the Australasian Institute of Mining and Metallurgy (#316885). Ms Canisius has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the
activity which she is undertaking to qualify as Competent Person as defined in the 2012 Edition of the
Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC
Code). Ms Canisius consents to the disclosure of information in this report 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).
75