Catalyst Metals Limited
ABN 54 118 912 495
Annual Financial Report - 30 June 2023
Catalyst Metals Limited
Corporate directory
30 June 2023
DIRECTORS
Robin Scrimgeour (Non-executive Director and interim Chairman)
Bruce Kay (Non-executive Director)
James Champion de Crespigny (Managing Director & Chief Executive Officer)
COMPANY SECRETARY
Frank Campagna
REGISTERED OFFICE
PRINCIPAL PLACE OF
BUSINESS
SHARE REGISTER
Level 1, 30 Richardson Street
West Perth WA 6005
Level 1, 30 Richardson Street
West Perth WA 6005
Telephone: (61-8) 6324 0090
Email: admin@catalystmetals.com.au
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney, New South Wales 2000
Telephone: 1300 288 664 or (61-2) 9698 5414
Email: hello@automicgroup.com.au
Website: www.automicgroup.com.au
AUDITORS
RSM Australia Partners
Level 32/2 The Esplanade
Perth, Western Australia 6000
STOCK EXCHANGE LISTING
Catalyst Metals Limited shares are listed on the Australian Securities Exchange
(ASX code: CYL)
WEBSITE
www.catalystmetals.com.au
1
Catalyst Metals Limited
Directors' report
30 June 2023
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter
as the 'Consolidated Entity' or 'Catalyst') consisting of Catalyst Metals Limited (referred to hereafter as the 'Company' or
'Parent Entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023.
DIRECTORS
The following persons were Directors of Catalyst Metals Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Stephen Boston (retired 8 August 2023)
Robin Scrimgeour
Bruce Kay
James Champion de Crespigny
COMPANY SECRETARY
Frank Campagna
PRINCIPAL ACTIVITIES
During the financial year the principal continuing activities of the Consolidated Entity consisted of:
●
●
Mineral exploration and evaluation
Production of gold
DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.
REVIEW OF OPERATIONS
The loss for the Consolidated Entity after providing for income tax amounted to $15,599,000 (30 June 2022: profit of
$2,091,000).
Victoria Introduction and Overview
Catalyst has significant interests over the Whitelaw Gold Belt and similar geological terranes both to the east and to the
west.
The Whitelaw Fault Corridor is a 75-kilometre-long geological structure thought to control the emplacement of the
Bendigo gold deposits, which extends in a generally northerly direction in favourable Ordovician rocks beneath the
covering veneer of the Murray Basin sediments.
Significant developments during the period included the following:
Four Eagles Gold Project
●
●
●
The drilling program in the first half-year period was delayed due to widespread regional flooding. Drilling
commenced in December 2022 with reverse circulation drilling at Hayanmi, aircore drilling between Hayanmi and
Boyd’s Dam, and diamond drilling on a potential feeder zone at Boyd’s dam.
An application seeking permission to establish an underground access tunnel for diamond drilling was submitted in
November 2022. 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.
A maiden Mineral Resource was announced at the Four Eagles Gold Project of 665,000 tonnes at 7.7grams per
tonne for 163,000 ounces.
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Catalyst Metals Limited
Directors' report
30 June 2023
Drummartin Project
●
●
●
●
In August 2022, Catalyst was advised by St Barbara Limited that it has withdrawn from the Drummartin Joint Venture
to focus on its existing projects.
At the time of withdrawal, St Barbara Limited had spent approximately $2.2 million on gravity and geochemical
surveys, soil sampling and air core drilling.
The Drummartin Joint Venture has identified 13 gravity targets from the detailed gravity survey completed last year.
Catalyst will follow-up these highly prospective targets, which have been generated at no cost to Catalyst, as part
of its ongoing exploration program. Catalyst retains all data from the joint venture and now has 100% ownership of
the project.
FOUR EAGLES JOINT VENTURE (RL006422, EL5295, EL5508, AND EL006859 CATALYST 50%)
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 drilling program in the first half of financial year 2023 was affected by widespread regional flooding which delayed
the commencement of the year’s program. Drilling at Four Eagles commenced in December 2022 with reverse circulation
drilling at Hayanmi, air core drilling between Hayanmi and Boyd’s Dam, and diamond drilling on a deeper potential feeder
zone at Boyd’s dam.
In November 2022, Catalyst submitted a work plan for an exploration tunnel with Earth Resources Regulation, the
Victorian Government’s resource and exploration regulator. The 3.6km tunnel will enable year-round access with minimal
environmental impact. The drilling will be from underground in the basement rocks, offering lower cost and more effective
drilling angles.
Catalyst has continued to collaborate with the Victorian Government’s regulation body, Earth Resources Regulation
(ERR), to gain approval to develop an exploration access tunnel at Four Eagles.
Catalyst was advised that the application for development of an exploration tunnel would require an Environmental Impact
Statement (EIS). Catalyst continues to engage with the Government and will work closely with the regulator through this
additional requirement.
Local support for the potential project remains strong with regular enquiries as to when an investment decision on the
project is expected to be considered by the joint venture partners.
Whilst the timeline regarding approval of the tunnel remains uncertain, Catalyst do not believe an EIS will negatively
impact the currently anticipated timeline.
During the year, Catalyst delivered a maiden Mineral Resource at the Four Eagles Gold Project of 665,000 tonnes at
7.7grams per tonne for 163,000 ounces. The release of a Mineral Resource was significant as it demonstrated proof of
concept that Four Eagles contains the same stacking of mineralisation as that of the historical 22-million-ounce Bendigo
Goldfield, where high-grade mineralised zones repeated at depth.
Deposit
Classification
Tonnes
Grade (g/t) Ounces
Boyd’s Dam
Iris
Total
Indicated
Inferred
Indicated
Inferred
455,000
125,000
-
85,000
665,000
5.0
5.0
-
26.2
7.7
73,000
20,000
-
70,000
163,000
This included the high-grade Iris Zone of 70,000 ounces at 26.2 grams per tonne. The Iris Zone is situated approximately
80 metres below the Boyd’s Dam deposit. Both Boyd’s Dam and Iris Zone remain open along strike.
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Catalyst Metals Limited
Directors' report
30 June 2023
TANDARRA JOINT VENTURE GOLD PROJECT (RL006660) (CATALYST 51%)
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 km long and up to 4 km wide. Within this, Catalyst is focussed on the
continued evaluation of three gold bearing structural zones trending roughly north-south: Tomorrow; Macnaughtan; and
Lawry. Field activity was affected by contractor availability during the 2023 field season, and as such no new data was
made available.
OTHER BENDIGO REGIONAL EXPLORATION
The Golden Camel Joint Venture (Catalyst 50.1% in exploration licences EL5449 and EL5490, including the now closed
Toolleen mine, with a right to purchase a 50.1% interest in the Golden Camel mining leases) had previously advanced
with diamond drilling on the Golden Camel mining licence and RC drilling on the Toolleen Project. There was no new
activity during the reporting period.
At the Boort exploration licence EL006670, Catalyst acts as manager of the joint venture with GEV (50:50). The activity
at Boort to date is based around a gravity geophysics survey conducted in 2021, which resulted in the generation of 13
drilling targets. There was no new activity during the period.
Drummartin EL006507 is situated to the east of the Whitelaw Belt and covers the northern extension of the Redesdale,
Fosterville and Drummartin Faults extending northwards from the vicinity of Fosterville gold mine. These faults are
believed to be similar in nature and parallel to the Whitelaw Fault, which is understood to be the driver of mineralisation
at Bendigo. St Barbara Limited (ASX: SBM) was funding and farming into EL006507 and was the manager of the Earn-
in Joint Venture project conducting the exploration. However, SBM had elected to withdraw from the earn-in program in
Q3 2022. There was no new activity during the period.
GEV has funded exploration to earn a 50% interest in the Macorna tenements with exploration activities managed by
Catalyst. There was no new activity during the period.
HENTY GOLD MINE
The Henty Gold Mine in Tasmania purchased in January 2021 is a high grade, underground gold-silver mine with
established infrastructure and significant exploration upside in the mineral rich Mt Read Volcanic belt in West Coast
Tasmania, proximate to world class deposits such as the Rosebery polymetallic mine (continuous production for circa
100 years).
Key to Henty’s success is increasing mine life, lifting its production rate and lowering its costs. Doing so will deliver a
stable platform for Catalyst to fund corporate activities. To achieve this, Catalyst has invested heavily in exploration.
Operations
With production stabilised, improved development rates and a longer mine life, cost reduction remains the key focus
moving forward. Henty has not been immune from the impact of rising input costs currently being experienced across
Australia. The goal is for improved margins as site unit costs to continue to fall, and the impact of increased gold
production comes into effect.
Henty sold 23,279 ounces of gold at an all-in sustaining cost (AISC) rate of A$2,576 per ounce for the year. This
compared with 24,771 ounces at an AISC of $2,207 per ounce in the corresponding period last year. The average realised
gold price was A$2,710 per ounce.
Total ore mined was 220,801 tonnes during the year at a grade of 3.6 grams per tonne.
The mill processed 230,061 tonnes with a feed grade of 3.4g/t. Recovery for the half year averaged 91.2%. Gold
produced for the year was 23,051 ounces.
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Catalyst Metals Limited
Directors' report
30 June 2023
OPERATIONS
Mining
Total mined (t)
Ore Mined (t)
Mine Grade (g/t)
Mill production
Processed (t)
Average Head Grade (g/t)
Recovery Gold (%)
Gold Produced (oz)
Gold Sold (oz)
Gold Price Realised ($/oz)
Cash Cost ($/oz)
AISC ($/oz)
Silver Sold (oz)
Silver Price Realised ($/oz)
September
2022
Quarter
December
2022
Quarter
March
2023
Quarter
June
2023
Quarter
12 months
to June
2023
83,934
48,790
3.3
105,527
57,809
4.0
57,474
3.5
92.2
5,923
5,974
2,521
2,131
2,658
4,753
28
57,673
4.0
90.7
6,763
6,955
2,641
1,612
1,997
7,271
33
99,406
63,493
3.9
52,999
3.5
90.5
5,461
5,148
2,799
1,909
2,763
4,956
38
95,862
50,709
2.8
384,729
220,801
3.6
61,915
2.7
91.2
4,904
5,202
2,931
2,317
3,210
8,330
29
230,061
3.4
91.2
23,051
23,279
2,710
1,935
2,576
25,310
31
CONSOLIDATION OF THE PLUTONIC GOLD BELT
The acquisition of Vango Mining (March 2023) and Superior Gold Inc (June 2023) in quick succession combines 3Mtpa
processing capacity with established Mineral Resources.
On 29 June 2023, Catalyst completed its merger with Superior Gold Inc. by way of Canadian Plan of Arrangement. The
completion of the Superior transaction brings together the Plutonic Gold Mine and the neighbouring high-grade Marymia
tenements to the north-east, forming together the Plutonic Gold Belt.
During the June 2023 quarter, Catalyst continued the evaluation of historical drillhole data and Mineral Resources within
the Marymia tenements. Planning commenced for the first round of drilling at the prospective and high-grade Trident
Deposit. The drilling program will support a planned Definitive Feasibility Study expected to be completed in second half
of calendar year 2023.
JORC 2012 MINERAL RESOURCES AND RESERVES
Catalyst confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcements and that all material assumptions and technical parameters underpinning the estimates
in the relevant market announcements continue to apply and have not materially changed. The Company confirms that
the form and context in which the Competent Persons findings are presented have not been materially modified from the
original market announcements.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 10 January 2023, Catalyst issued a bid to acquire Vango Mining Limited (“Vango), offering 5 Catalyst shares for every
115 Vango shares. On the 7th of February 2023, Catalyst exceeded 50% ownership of Vango with the 90% compulsory
acquisition threshold met on 21 February 2023. At the close of the takeover offer period on 6 March 2023, Catalyst held
a relevant interest in 94.6% of Vango shares. Following completion of the compulsory acquisition process, Catalyst
owned 100% of Vango Shares. Catalyst completed the compulsory acquisition on the 21 March 2023.
On 29 June 2023, Catalyst Metals Ltd acquired all the issued and common shares in Superior Gold Inc by plan of
arrangement. Superior Gold Inc is a Canadian-based gold producer that owns 100% of the Plutonic Gold Operations
located in Western Australia. The Plutonic Gold Operations include the Plutonic underground gold mine and central mill,
numerous open-pit projects, and an interest in the Bryah Basin joint venture.
There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future
financial years.
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Catalyst Metals Limited
Directors' report
30 June 2023
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Information on likely developments in the operations of the Consolidated Entity and the expected results of operations
have not been included in this report because the Directors believe it would be likely to result in unreasonable prejudice
to the Consolidated Entity.
MATERIAL BUSINESS RISKS
Catalyst operates in an uncertain economic environment, which can impact its ability to deliver results in accordance with
its strategic plan and objectives. Its financial results are subject to various risks and uncertainties, which may not be
within the reasonable control of the Consolidated Entity. The material business risks, which may have a material adverse
impact on the Consolidated Entity’s business, results and prospects for future financial years include:
Gold Prices
The Consolidated Entity generates revenues and cashflows primarily from the sale of gold and is therefore exposed to
fluctuations in the Australian dollar gold price. Volatility in the gold price creates revenue uncertainty and requires careful
management of business performance to ensure that operating cash margins are maintained. Declining gold price can
also impact operations by requiring a reassessment of the feasibility of a particular exploration or development project
which would cause delays and potentially have a material adverse effect on results of operations and financial conditions
forward contracts.
Ore Reserve
Mineral Resource and Ore Reserve are expressions of judgement based on knowledge, experience, and industry
practice, and no assurances can be given that the Mineral Resource and Ore Reserve estimates and the underlying
assumptions will be realised. Estimates, which were valid when originally calculated, may alter when new information or
techniques become available.
In addition, by their very nature, Mineral Resource and Ore Reserve estimates are imprecise and depend to some extent
on interpretations, which may prove to be inaccurate. As further information becomes available through additional
fieldwork and analysis, the Mineral Resource and Ore Reserve estimates may change.
Actual mineralisation of ore bodies may differ from those predicted, and any material variation in the estimated Ore
Reserves may have a material adverse effect impact on the group’s results of operations, financial condition, and
prospects.
Production, operating and capital cost estimates
The group prepares estimates of future production, operating costs and capital expenditure relating to production at its
operations. No assurance can be given that such estimates will be achieved. Failure to achieve production or cost
estimates or material increases in costs could have an adverse impact on the group’s future cash flows, profitability,
results of operations and financial condition.
The Consolidated Entity’s actual production and costs may vary from the estimates due to variety of reasons including
variances in actual ore mined due to varying estimates of grade, tonnage, dilution, metallurgical and other characteristics;
revision of mine plans; changing ground conditions; labour availability and costs; energy costs; and general inflationary
pressures being felt across the industry.
The development of estimates is managed by the Catalyst using a rigorous planning, budgeting and forecasting process.
Operating risks
The group’s mining operations are subject to all the hazards and risks normally encountered in the exploration,
development, and production of gold that could result in decreased production, increased costs and reduced revenues.
The operation may be affected by equipment failure, toxic chemical leakage, labour disruptions and availability, residue
and tailings dam failures, rain and seismic events which may result in environmental pollution and consequent liability.
The impact of these events could lead to disruptions in production and scheduling, increased costs and loss of facilities,
which may have a material adverse impact on the Consolidated Entity's results.
To manage this risk Catalyst seeks to attract and retain high calibre employees and implement suitable systems and
processes to ensure production targets are achieved.
Employee Workforce
Competition for human resources continues to be very high in Australia (and in particular in Western Australia). Strategic
retention strategies and incentive schemes, and a focus on organisational culture, employee health and wellbeing
continue to be a focus to address human resource risk.
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Catalyst Metals Limited
Directors' report
30 June 2023
Exploration and development risks
An ability to sustain or increase the current level of production in the longer term is in part dependent on the success of
Catalyst's exploration activities. Exploration is a high-risk activity that requires large amounts of expenditure over
extended periods of time. Few properties that are explored subsequently have economic deposits of gold identified, and
even fewer are ultimately developed into producing mines.
Conclusions drawn during exploration and development are subject to the uncertainties associated with all sampling
techniques and to the risk of incorrect interpretation of geological, geochemical, geophysical, drilling and other data.
In addition, development of properties that are explored into producing mines requires to source appropriate level of
funding. The Company has been successful in the past in securing funding through equity or debt to fund exploration
and development programs but there is no assurance that funding will be secured for all future expansion projects.
Climate Change
Catalyst recognises that climate change poses a key environmental and social risk to our business, and the markets in
which the group operates in. The highest priority climate related risks include reduced water availability, extreme weather
events, changes in legislation and regulation, reputational risk, and technological and market changes. While Catalyst
proposes to comply with applicable laws and regulations and conduct its programs in a responsible manner regarding
the environment, there is the risk that Catalyst may incur liability for any breaches of these laws and regulations.
Licenses, permits and approvals
To operate its mines and undertake its exploration program, Catalyst needs to comply with applicable environment and
planning laws, regulations and permitting requirements. The Consolidated Entity has in place the necessary approvals
and licences to operate its mine sites and to undertake its exploration activities.
In the ordinary course of business, mining companies are required to seek government permits for exploration, expansion
of existing operations or for the commencement of new operations. The duration and success of permitting efforts are
contingent upon many variables not within the controls of the group. There can be no assurance that all necessary
permits will be obtained, and, if obtained, that the costs involved will not exceed those estimated by the group.
Information technology and cyber security risk
Catalyst’s operations are supported by information technology systems that are subject to interference or disruptions
resulting in production downtime, operational delays, destruction or corruption of data, disclosure of sensitive information
and data breaches. The Company has established disaster recovery plans and cyber security monitoring systems to
manage this risk.
Community relations
Community relations is about people connecting with people. Maintaining trusted relationships with our local community
stakeholders throughout the entire mining cycle is an essential part of securing and maintaining our social licences to
operate.
Catalyst recognises that a failure to appropriately manage local community stakeholder expectations may lead to
dissatisfaction which has the potential to disrupt production and exploration activities.
Government regulation and taxation
The Consolidated Entity’s mining, processing, development and exploration activities are subject to various laws and
statutory regulations governing prospecting, development, production, taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances, land use, water use, communications, land claims of local people
and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position and
results of operations. Any such amendments to current laws, regulations and permits governing operations and activities
of mining and exploration, or more stringent implementation thereof, could have a material adverse impact on the
Consolidated Entity.
The gold mining industry is subject to several Government taxes, royalties and charges. Changes to the rates of taxes,
royalties and charges can impact the profitability of the Consolidated Entity.
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Catalyst Metals Limited
Directors' report
30 June 2023
Funding and debt covenants
The Consolidated Entity has entered into agreements with financiers and customers that contain various undertakings
and financial covenants. Non-compliance with the undertakings and covenants contained in these agreements could
lead to a default event resulting in the debt becoming due and payable with potentially adverse effects on the financial
position of the group. Management continually monitors for compliance with the required undertakings and covenants.
ENVIRONMENTAL REGULATION
The Consolidated Entity is subject to and is compliant with all aspects of environmental regulation of its exploration and
mining activities.
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 Consolidated Entity and supporting services are appropriately
trained and equipped to manage any event. This is part of Catalyst's continuous improvement programme.
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Catalyst Metals Limited
Directors' report
30 June 2023
INFORMATION ON DIRECTORS
Name:
Title:
Experience and expertise:
Stephen Boston (retired 8 August 2023)
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.
None
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Chairman
Not applicable as no-longer a Director
Name:
Title:
Experience and expertise:
Robin Scrimgeour
Non-Executive Director (and interim Chair following the retirement of Mr Boston)
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.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Chair of audit committee
5,559,499
Name:
Title:
Experience and expertise:
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.
None
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Technical Director
2,272,169
Name:
Title:
Experience and expertise:
James Champion de Crespigny
Managing Director and Chief Executive Officer
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.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in Performance Rights:
1,567,279
1,800,000
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of
all other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
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Catalyst Metals Limited
Directors' report
30 June 2023
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.
MEETINGS OF DIRECTORS
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2023,
and the number of meetings attended by each Director were:
Stephen Boston
Robin Scrimgeour
Bruce Kay
James Champion de Crespigny
Board Meetings
Audit Committee Meetings
Attended
Held
Attended
Held
12
12
12
12
12
12
12
12
1
2
-
1
1
2
-
1
Held: represents the number of meetings held during the time the Director held office.
REMUNERATION REPORT (audited)
The remuneration report details the key management personnel remuneration arrangements for the Consolidated Entity,
in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including all Directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the Consolidated Entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic
objectives and the creation of value for Shareholders, and it is considered to conform to the market best practice for the
delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria
for good reward governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to Shareholders
performance linkage / alignment of executive compensation
transparency
The reward framework is designed to align executive reward to Shareholders' interests. The Board have considered that
it should seek to enhance Shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in Shareholder wealth, consisting of dividends and growth in share price, and
delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of
value
attracting and retaining high calibre executives
●
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Catalyst Metals Limited
Directors' report
30 June 2023
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in Shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Non-executive Directors remuneration
Fees and payments to non-executive Directors reflect the demands and responsibilities of their role. Non-executive
Directors' fees and payments are reviewed annually by the Board of Directors. The Board of Directors may, from time to
time, receive advice from independent remuneration consultants to ensure non-executive Directors' fees and payments
are appropriate and in line with the market. The chairman's fees are determined independently to the fees of other non-
executive Directors based on comparative roles in the external market. The chairman is not present at any discussions
relating to the determination of his own remuneration.
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.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 13 November 2019, where the
Shareholders approved a maximum annual aggregate remuneration of $550,000.
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.
Executive remuneration
The Consolidated Entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
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.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the Consolidated Entity and provides additional value to the
executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance
hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance
indicators ('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and
product management.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives
over a period of three years based on long-term incentive measures. These include increase in Shareholders value
relative to the entire market and the increase compared to the Consolidated Entity's direct competitors.
11
Catalyst Metals Limited
Directors' report
30 June 2023
Shareholders approved the granting of performance rights to the Managing Director at the Annual General Meeting on
17 November 2022. Details of the performance rights and milestones are below:
Description Grant Date Expected Vesting Date
Tranche 1
Tranche 2
Tranche 3
17/11/2022
17/11/2022
17/11/2022
10/03/2023
30/06/2024
30/06/2024
Number of
performance
rights
Probability
achieving
%
700,000
800,000
1,000,000
100%
100%
100%
Key terms of Performance Rights
Each Performance Right will entitle the holder to one Share upon satisfaction of certain vesting conditions.
The measurement period applicable to each tranche in each offer of Performance Rights is from the date of issue of the
Performance Rights to 30 September 2026 ("Measurement Period").
●
●
●
Tranche 1 Performance Rights will vest on the successful raising of at least $10 million in capital by the Company
in any capital raising or the achievement by the Consolidated Entity of actual annual gold production of 40,000
ounces in any rolling 12-month period in the Measurement Period (either by enhancement of current operations or
new business development transactions).
Tranche 2 Performance Rights will vest on the achievement by the Consolidated Entity of actual annual gold
production of 80,000 ounces in any rolling 12-month period in the Measurement Period (either by enhancement of
current operations or new business development transactions).
Tranche 3 Performance Rights will vest on the achievement by the Consolidated Entity of actual annual gold
production of 100,000 ounces in any rolling 12-month period in the Measurement Period (either by enhancement of
current operations or new business development transactions).
It is noted that the vesting conditions related to gold production are cumulative, such that if 100,000 ounces of gold
production is achieved in any 12-month period during the Measurement Period all Performance Rights that have not yet
lapsed would vest and become exercisable. If 40,000 ounces of gold production is achieved in any 12-month period
during the Measurement Period, all Performance Rights relating to that milestone only would vest.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the Consolidated Entity. A portion of cash
bonus and incentive payments are dependent on defined earnings per share targets being met. The remaining portion
of the cash bonus and incentive payments are at the discretion of the Nomination and Remuneration Committee. Refer
to the section 'Additional information' below for details of the earnings and total shareholders return for the last five years.
Voting and comments made at the Company's 17 November 2022 Annual General Meeting ('AGM')
At the 2022 AGM, 99.4% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Consolidated Entity are set out in the following tables.
The key management personnel of the Consolidated Entity consisted of the following Directors of Catalyst Metals Limited:
●
●
●
●
S Boston (retired 8 August 2023)
R Scrimgeour
B Kay
J Champion de Crespigny
And the following person:
●
Donna Thornton (Chief Financial Officer)
12
Catalyst Metals Limited
Directors' report
30 June 2023
2023
Non-Executive Directors:
S Boston
R Scrimgeour
B Kay
Executive Directors:
J Champion de Crespigny (MD & CEO) (1)
J McKinstry (CEO) (2)
Other Key Management Personnel:
Donna Thornton (CFO) (3)
Total Key Management Personnel compensation
Short-term
benefits
Cash salary
and fees
$
106,400
81,400
253,286
265,994
128,898
73,986
909,964
Post-
employment
benefits
Share-based
payments
Superannuation
$
11,172
-
26,595
Equity-
settled
$
Total
$
-
-
-
117,572
81,400
279,881
27,929
10,128
1,870,127
-
2,164,050
139,026
7,047
82,871
-
1,870,127
81,033
2,862,962
(1) James Champion de Crespigny was appointed as Managing Director and Chief Executive Officer on 12 October 2022. The remuneration
includes the entire year of remuneration including remuneration received as a Non-Executive Director.
(2) John McKinstry was Chief Executive Officer until 12 October 2022. The remuneration covers the period he was a Key Management Personnel.
(3) Donna Thornton was appointed as Chief Financial Officer on 27 February 2023.
In the year ended 30 June 2023, Mr Kay received $74,000 (2022: $74,000) 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 the joint venture agreements. During
the year, Mr Boston received $80,000 (2022: $80,000) in Directors' fees and was paid extra consulting fees for managing
the Company. Mr Champion de Crespigny was paid Directors' fees of $24,667 (2022: $47,072) before becoming the
Managing Director and Chief Executive Officer on 12 October 2022.
2022
Non-Executive Directors:
S Boston
R Scrimgeour
B Kay (1)(3)
J Champion de Crespigny (4)
G Schwab (1)(2)(3)(5)
Executive Directors:
J McKinstry (6)
B Robertson (5)
Short-term
benefits
Cash salary
and fees
$
171,200
81,400
185,485
122,672
77,000
289,808
119,041
Post-
employment
benefits
Share-based
payments
Superannuation Equity-settled
Total
$
$
$
17,360
-
26,392
11,650
11,400
20,625
14,404
-
-
152,250
-
142,100
188,560
81,400
364,127
134,322
230,500
-
120,500
310,433
253,945
Other Key Management Personnel:
V Utete (GM Henty) (7)
D Alford (GM Henty) (5)
Total Key Management Personnel compensation
49,542
314,999
1,411,147
4,908
27,499
134,238
-
-
414,850
54,450
342,498
1,960,235
(1) Shareholders approved the issue of 75,000 shares and 60,000 shares to Mr Kay and Mr Schwab respectively, for 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.
(4)
(5)
(6)
(7)
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.
13
Catalyst Metals Limited
Directors' report
30 June 2023
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Executive Directors:
J Champion de Crespigny (1)
Other Key Management
Personnel:
B Robertson
Fixed remuneration
2023
2022
At risk - STI
At risk - LTI
2023
2022
2023
2022
14%
100%
-
53%
-
-
-
-
86%
-
-
47%
(1)
At-risk remuneration received by Mr Champion de Crespigny was associated with the Performance Rights granted during the year ended 30
June 2023
The fixed remuneration for all other key management personnel for the year ended 30 June 2023 was 100% (2022:
100%).
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
James Champion de Crespigny
Managing Director & Chief Executive Officer
12 October 2022
Ongoing contract
Total Fixed Remuneration: $400,000 inclusive of superannuation
Notice: 6 months required by employee or company
If terminated during measurement period for any other reason other than cause or
due to resignation, all unvested performance rights will vest and become
exercisable.
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Donna Thornton
Chief Financial Officer
27 February 2023
Ongoing Contract
Total Fixed Remuneration: $300,000 inclusive of superannuation
Notice period: 4 months by employee, 3 months by company
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year
ended 30 June 2023.
Options
There were no options over ordinary shares issued to Directors and other key management personnel as part of
compensation that were outstanding as of 30 June 2023.
There were no options over ordinary shares granted to or vested by Directors and other key management personnel as
part of compensation during the year ended 30 June 2023.
14
Catalyst Metals Limited
Directors' report
30 June 2023
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors
and other key management personnel in this financial year or future reporting years are as follows:
Name
James Champion de
Crespigny
James Champion de
Crespigny
James Champion de
Crespigny
Number of
rights granted
Grant date
Expected Vesting
Date
Expiry Date
700,000
17/11/2022
10/03/2023
30/09/2026
800,000
17/11/2022
30/06/2024
30/09/2026
1,000,000
17/11/2022
30/06/2024
30/09/2026
Fair value per
right at Grant
Date
$1.350
$1.350
$1.350
Performance rights granted carry no dividend or voting rights.
Additional information
The earnings of the Consolidated Entity for the five years to 30 June 2023 are summarised below:
Sales revenue
EBITDA (1)
EBIT (1)
Profit/(loss) after income tax
2023
$'000
63,944
(783)
(15,206)
(15,599)
2022
$'000
63,330
7,376
2,033
2,091
2021
$'000
28,508
6,003
846
935
2020
$'000
-
(1,825)
(1,845)
(1,748)
2019
$'000
-
(1,731)
(1,751)
(1,686)
(1)
Measure of the Consolidated Entity performance has been updated during the year to better reflect the stage of the operations. EBITDA and
EBIT were not considered appropriate performance measures in the previous years as the Consolidated Entity was primarily undertaking
exploration and evaluation activities and therefore have not been presented in the above table. With the acquisition of Henty during the year
ended 30 June 2021 and Superior in the current financial year, the activities of the group have a great focus on mining operations, which are
better measured using EBITDA and EBIT.
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($)
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
0.77
(12.64)
(12.64)
1.20
2.13
2.12
1.95
1.04
0.96
2.75
(2.20)
(2.20)
1.96
(2.30)
(2.30)
2023
2022
2021
2020
2019
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each Director and other members of key
management personnel of the Consolidated Entity, including their personally related parties, is set out below:
Ordinary shares
S Boston
R Scrimgeour
B Kay
J Champion de Crespigny
Balance at
the start of
the year
Received
as part of
remuneration
Additions Disposals/
other
Balance at
the end of
the year
5,750,727
5,509,499
2,222,169
817,279
14,299,674
-
-
-
-
-
50,000
50,000
-
50,000
150,000
5,800,727
-
5,559,499
-
2,222,169
-
-
867,279
- 14,449,674
15
Catalyst Metals Limited
Directors' report
30 June 2023
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each Director
and other members of key management personnel of the Consolidated Entity, including their personally related parties,
is set out below:
Performance rights over ordinary shares
James Champion de Crespigny
Balance at
the start of
the year
Granted
Exercised
Expired /
Forfeited /
Other
Balance at
the end of
the year
-
-
2,500,000
2,500,000
-
-
-
-
2,500,000
2,500,000
Performance rights over ordinary shares
James Champion de Crespigny
Vested and
exercisable
Vested and
unexercisable
Balance at
the end of
the year
(vested)
700,000
700,000
-
-
700,000
700,000
Other transactions with key management personnel and their related parties
Mr Boston is also a Director of Raisemetrex Pty Ltd which was paid $45,000 (2021: $60,000) by the Company to provide
an online platform for the administration of capital raisings and electronic communications with shareholders. All
transactions were made on normal commercial terms and conditions and at market rates.
This concludes the remuneration report, which has been audited.
SHARES UNDER OPTION
Unissued ordinary shares of Catalyst Metals Limited under option at the date of this report are as follows:
Grant date
4 January 2021
29 June 2023
29 June 2023
29 June 2023
29 June 2023
29 June 2023
29 June 2023
29 June 2023
Expiry date
30 November 2024
4 August 2025
13 August 2026
15 August 2024
14 April 2026
19 August 2027
27 May 2027
13 May 2025
Exercise
price
Number
under option
250,000
357,100
446,375
17,855
71,420
71,420
89,275
53,565
1,357,010
$3.00
$3.48
$1.98
$3.06
$2.27
$1.79
$2.65
$2.39
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of
the Company or of any other body corporate.
SHARES UNDER PERFORMANCE RIGHTS
Unissued ordinary shares of Catalyst Metals Limited under performance rights at the date of this report are as follows:
Grant date
Expiry date
Exercise
price
17 November 2022
30 November 2026
$0.00
Number
under rights
1,800,000
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate
in any share issue of the Company or of any other body corporate.
16
Catalyst Metals Limited
Directors' report
30 June 2023
SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares of Catalyst Metals Limited issued on the exercise of options during the year ended 30
June 2023 and up to the date of this report.
SHARES ISSUED ON THE EXERCISE OF PERFORMANCE RIGHTS
The following ordinary shares of Catalyst Metals Limited were issued during the year ended 30 June 2023 and up to the
date of this report on the exercise of performance rights granted:
Date performance rights granted
17 November 2022
Exercise
price
Number of
shares
issued
$0.00
700,000
INDEMNITY AND INSURANCE OF OFFICERS
The Company has entered into indemnity agreements with each of the Directors and executives of the Company. Under
the agreements, the Group will indemnify those officers against any claim or for any costs which may arise as a result of
work performed in their capacity as a Director or executive and for which they may be held personally liable, except
where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives of
the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in note 29 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in note 29 to the financial statements do not compromise
the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,
including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the
Company, acting as advocate for the Company or jointly sharing economic risks and rewards.
●
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.
17
Catalyst Metals Limited
Directors' report
30 June 2023
ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the Directors
___________________________
James Champion de Crespigny
Managing Director & CEO
29 September 2023
18
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 2023, 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
29 September 2023
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
Contents
30 June 2023
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members of Catalyst Metals Limited
GENERAL INFORMATION
21
22
23
24
25
64
65
The financial statements cover Catalyst Metals Limited as a 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. Its registered
office and principal place of business is:
Level 1/30 Richardson Street West Perth WA 6005
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 29 September 2023.
The Directors have the power to amend and reissue the financial statements.
20
Catalyst Metals Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Revenue from continuing operations
Other income
Interest revenue
Expenses
Mining and processing costs
Personnel
Administration
Royalties
Share-based payments expense
Exploration & evaluation expenditure
Depreciation & amortisation relating to gold sales
Depreciation
Interest expenses
Note
Consolidated
2023
$'000
2022
$'000
4
5
63,944
63,330
821
171
5,546
58
(28,323)
(21,961)
(9,677)
(3,648)
(1,870)
(71)
(12,284)
(2,138)
(563)
(30,945)
(14,676)
(4,417)
(3,675)
-
(2,787)
(8,324)
(2,019)
-
Profit/(loss) before income tax expense
(15,599)
2,091
Income tax expense
7
-
-
Profit/(loss) after income tax expense for the year attributable to the Owners
of Catalyst Metals Limited
26
(15,599)
2,091
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the Owners of
Catalyst Metals Limited
Basic earnings per share
Diluted earnings per share
(15,599)
2,091
Cents
Cents
41
41
(12.64)
(12.64)
2.13
2.12
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
21
Catalyst Metals Limited
Consolidated statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventory
Other financial assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Exploration and evaluation
Mining development assets
Receivables
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Derivative financial instruments
Employee benefits
Provisions
Other advances
Deferred revenue
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Employee benefits
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
2023
$'000
2022
$'000
8
9
10
12
13
11
14
15
12
16
17
18
19
20
21
22
23
17
18
20
21
28,791
5,539
17,801
3,190
55,321
39,357
7,466
125,751
87,480
48
260,102
18,243
3,431
5,706
3,000
30,380
11,066
121
17,508
20,428
36
49,159
315,423
79,539
47,747
23,195
2,126
1,956
8,966
800
8,243
6,316
99,349
2,517
5,979
1,035
34,770
44,301
12,004
1,509
639
-
1,589
-
1,515
-
17,256
-
124
711
3,728
4,563
143,650
21,819
171,773
57,720
24
25
26
200,989
2,395
(31,611)
73,239
493
(16,012)
171,773
57,720
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
22
Catalyst Metals Limited
Consolidated statement of changes in equity
For the year ended 30 June 2023
Consolidated
Balance at 1 July 2021
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with Owners in their capacity as Owners:
Issue of shares (note 24)
Issue of options (note 24)
Issued
capital
$'000
Retained
Reserves
$'000
profits
$'000
Total equity
$'000
72,913
373
(18,103)
55,183
-
-
-
-
-
-
2,091
-
2,091
-
2,091
2,091
326
-
-
120
-
-
326
120
Balance at 30 June 2022
73,239
493
(16,012)
57,720
Consolidated
Balance at 1 July 2022
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with Owners in their capacity as Owners:
Share-based payments (note 42)
Issue of shares (note 24)
Cost of share issue
Issue of options
Issued
capital
$'000
Retained
Reserves
$'000
profits
$'000
Total equity
$'000
73,239
493
(16,012)
57,720
-
-
-
-
-
-
(15,599)
-
(15,599)
-
(15,599)
(15,599)
-
129,191
(1,441)
-
1,870
-
-
32
-
-
-
-
1,870
129,191
(1,441)
32
Balance at 30 June 2023
200,989
2,395
(31,611)
171,773
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
23
Catalyst Metals Limited
Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Payments for exploration and evaluation
Research and development tax offsets received
Interest received
Other revenue
Interest and other finance costs paid
Note
Consolidated
2023
$'000
2022
$'000
64,000
(56,305)
(67)
-
63,633
(54,991)
(2,254)
154
7,628
171
172
(112)
6,542
58
392
-
Net cash from operating activities
40
7,859
6,992
Cash flows from investing activities
Net of cash acquired through acquisition of subsidiaries
Payment for expenses relating to acquisitions
Payments for property, plant and equipment
Payments for exploration and evaluation
Payments for mine development assets
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Share issue transaction costs
Repayment of borrowings
Repayment of lease liabilities
Joint venture exploration advances
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
34,36
24
8,259
(592)
(3,768)
(6,950)
(14,488)
650
(5,205)
-
(1,241)
(5,816)
(8,535)
-
(16,889)
(20,797)
21,600
3,730
(1,378)
(3,212)
(631)
(531)
1
-
-
706
(477)
1,300
19,578
1,530
10,548
18,243
(12,275)
30,518
Cash and cash equivalents at the end of the financial year
8
28,791
18,243
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
24
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
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 financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
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.
Going concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
As disclosed in the financial statements, the Consolidated Entity has incurred a net loss of $15,599,000 during the year
ended 30 June 2023 and, as of that date, the Consolidated Entity’s current liabilities exceeded its current assets by
$44,028,000.
The Directors believe that it is reasonably foreseeable that the Consolidated Entity will continue as a going concern and
that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the
following factors:
●
●
●
●
The Directors believe that the Henty and Plutonic Gold Mines will generate sufficient cashflow based on a detailed
cashflow forecast prepared by Management. The cash flow forecast indicates that the Consolidated Entity expects
to have sufficient working capital and other funds available to continue for at least the next twelve-month period
ending 30 September 2024. The key assumptions used to derive the detailed cashflow forecast relate to future sales
and capital and operating costs;
The Consolidated Entity is exploring alternative sources of funding and is confident that, if required, existing material
debt falling due before 30 June 2024 will be extended or replaced by reprofiled debt;
Short term financing facilities could also be put in place in order to support any liquidity issue; and
The consolidated entity has had strong support of key investors over time and Directors anticipate their continuing
support should further equity raisings be required.
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 35.
25
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
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 2023 and the results of all subsidiaries for the year then ended. Catalyst
Metals 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.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated Entity
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the Consolidated Entity.
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.
Where the Consolidated Entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity.
The Consolidated Entity recognises the fair value of the consideration received and the fair value of any investment
retained together with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Catalyst Metals Limited's functional and
presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
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.
26
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
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.
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.
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.
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.
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 remeasured 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.
27
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
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.
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 is measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of
the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that
do not determine whether the consolidated entity receives the services that entitle the employees to receive payment.
No account is taken of any other vesting conditions.
The cost of equity-settled transactions is 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.
28
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
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.
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable
to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
●
●
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in
a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available
for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that
it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
Catalyst Metals Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under
the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for
their own current and deferred tax amounts. The tax consolidated group has applied the ‘separate taxpayer within group’
approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or
assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary
in the tax consolidated group.
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.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
29
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
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 2023.
The Consolidated Entity has not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
Note 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.
Share-based payment transactions
The Consolidated Entity measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial
or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the
provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that
affect inventory obsolescence.
Estimation of useful lives of assets
The Consolidated Entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of
technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives
are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or
sold will be written off or written down.
30
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The Consolidated Entity assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the Consolidated Entity and to the particular
asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined.
This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates
and assumptions.
In determining the recoverable amount of assets, key assumptions and estimates are used that require significant levels
of judgement and are subject to risk and uncertainty that are beyond the control of the Consolidated Entity, including
political risk, climate risk, and other global uncertainty risks, such as the impact of COVID-19.
Key assumptions contained in the cash flow projections for Value In Use models used to determine the recoverable
amounts of assets include:
●
●
●
Estimates of future production, operating costs, capital expenditure: These estimates are based on a combination
of long-term planning supported by Life Of Mine (LOM) models, and short-term mine planning which is then reflected
in operational budgets.
Future commodity prices have been estimated by management based on industry experience and available market
information.
The cash flow forecast are discounted using a pre-tax discount rate of 22.6%.
Australian Accounting Standards require the Group to assess in respect of the reporting period, whether there are any
indications that an asset may be impaired, or conversely whether reversal of a previously recognised impairment may
be required. If any such indication exists, an entity shall estimate the recoverable amount of the asset or Cash Generating
Unit (CGU).
At year end, the Group has identified impairment indicators, but has concluded that impairment of the CGU’s was not
required for the year ended 30 June 2023.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined.
The Consolidated Entity's mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The Consolidated Entity recognises management's best estimate for assets retirement
obligations and site rehabilitations in the period in which they are incurred. Actual costs incurred in the future periods
could differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of this provision.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Consolidated Entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the
mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production at the
mine include the level of reserves and resources, future technology changes, which could impact the cost of mining,
future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be
recoverable in the future, they will be written off in the period in which this determination is made.
31
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Business combinations
As discussed in note 1, business combinations are initially accounted for on a provisional basis. The fair value of assets
acquired, liabilities and contingent liabilities assumed are initially estimated by the Consolidated Entity taking into
consideration all available information at the reporting date. Fair value adjustments on the finalisation of the business
combination accounting are retrospective, where applicable, to the period the combination occurred and may have an
impact on the assets and liabilities, depreciation and amortisation reported.
Unit-of-production method of depreciation/amortisation
The Consolidated Entity 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.
Note 3. Operating segments
Identification of reportable operating segments
The Consolidated Entity is organised into four operating segments:
●
●
●
●
Victoria
Tasmania
Western Australia
Corporate and unallocated
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. There is no aggregation of operating segments.
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.
Types of products and services
The principal products and services of each of these operating segments are mining and exploration and evaluation
activities.
Intersegment receivables, payables and loans
Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans
payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment
loans are eliminated on consolidation.
Major customers
During the year ended 30 June 2023 approximately $63.9 million of the Consolidated Entity's external revenue was
derived from sales of gold and silver to one customer (prior year: $32.2 million and $31.2 million respectively from two
customers). No other single customer contributed 10% or more to the Group's revenue for the year.
32
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 3. Operating segments (continued)
Operating segment information
Consolidated - 2023
$'000
$'000
$'000
$'000
Victoria
Tasmania
Western
Australia
Corporate/
Unallocated
Revenue
Sales to external customers
Other income
Total revenue
EBITDA
Depreciation and amortisation
Interest revenue
Finance costs
Loss before income tax expense
Income tax expense
Loss after income tax expense
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
-
92
92
73
63,944
128
64,072
-
1
1
-
600
600
10,902
(226)
(11,533)
23,291
45,699
228,140
18,293
589
14,128
90,862
38,071
Victoria
Tasmania
Corporate/
Unallocated
Consolidated - 2022
$'000
$'000
$'000
Revenue
Sales to external customers
Other revenue
Total revenue
EBITDA
Depreciation and amortisation
Interest revenue
Profit before income tax expense
Income tax expense
Profit after income tax expense
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
-
212
212
63,330
179
63,509
-
5,155
5,155
(377)
10,336
2,417
20,920
49,791
8,828
2,691
17,075
2,053
33
Total
$'000
63,944
821
64,765
(784)
(14,423)
171
(563)
(15,599)
-
(15,599)
315,423
315,423
143,650
143,650
Total
$'000
63,330
5,546
68,876
12,376
(10,343)
58
2,091
-
2,091
79,539
79,539
21,819
21,819
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 3. Operating segments (continued)
Accounting policy for 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.
Note 4. Revenue
Sale of gold
Sale of silver
Revenue
Sale of gold and other metals
Consolidated
2023
$'000
2022
$'000
63,148
796
62,637
693
63,944
63,330
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.
All sales are derived in Australia.
Note 5. Other income
Other income
Administration recovery fees
Mark-to-Market of Financial Instruments
Contingent consideration derecognised
Other income
Consolidated
2023
$'000
2022
$'000
129
92
600
-
334
212
-
5,000
821
5,546
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.
Note 6. Expenses
Loss before income tax includes the following specific expenses:
Depreciation
Directors' fees
Amortisation
34
Consolidated
2023
$'000
2022
$'000
3,889
835
10,518
3,487
938
6,856
15,242
11,281
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 7. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses (non-assessable income)
Capital raising costs
Temporary differences and tax losses not brought to account as a deferred tax
balance
Income tax expense
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Prepayments
Property, plant and equipment
Exploration Expenditure
Mining Development Assets
Right of use assets
Provisions and accrued expenses
Other advances / provisions
Provision for Rehabilitation
Tax deductibility for capital raising costs
Revenue Losses
Capital Losses
Consolidated
2023
$'000
2022
$'000
(15,599)
2,091
(4,680)
627
567
(162)
(1,505)
(49)
4,275
927
-
-
Consolidated
2023
$'000
2022
$'000
(93)
(4,214)
(6,961)
(6,842)
2,271
324
2,603
10,680
887
90,556
271
(98)
(2,866)
(5,252)
(6,459)
2
409
630
-
592
18,747
251
Total deferred tax assets not recognised
89,482
5,956
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised
in the statement of financial position as the recovery of this benefit is uncertain.
Accounting policy for 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.
35
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 7. Income tax (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.
Note 8. Cash and cash equivalents
Current assets
Cash at bank
Accounting policy for cash and cash equivalents
Consolidated
2023
$'000
2022
$'000
28,791
18,243
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
The cash at bank includes $1,196,000 (2022: $2,163,000) 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).
Note 9. Trade and other receivables
Current assets
Other receivables
Prepayments
GST receivable
Consolidated
2023
$'000
2022
$'000
1,073
2,896
1,570
1,041
2,029
361
5,539
3,431
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
Due to the short-term nature of the receivables, their carrying value is assumed to approximate their fair value.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
36
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 10. Inventory
Current assets
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
Consolidated
2023
$'000
2022
$'000
146
5,007
80
12,568
1,773
1,404
-
2,529
17,801
5,706
Accounting policy for inventories
Consumable stores, ore stockpiles, gold in circuit and bullion on hand are stated at the lower of cost and net realisable
value. Cost comprises of direct materials and delivery costs, direct labour 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.
Stock on hand 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.
Note 11. Right-of-use assets
Non-current assets
Leasehold improvements - right-of-use
Less: Accumulated depreciation
Consolidated
2023
$'000
2022
$'000
12,981
(5,515)
7,466
261
(140)
121
Additions to the right-of-use assets during the year were $12,981,000 and were primarily as a result of the acquisition of
Superior Gold Inc.
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. The Consolidated Entity also leases
plant and equipment under various agreements of between 1 and up to 5 years.
The Consolidated Entity leases office equipment under agreements of less than 1 year. These leases are either short-
term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.
Accounting policy for right-of-use assets
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.
37
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 11. Right-of-use assets (continued)
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.
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.
Note 12. Other Financial Assets
Current assets
Term Deposits & security deposits
Non-current assets
Environmental rehabilitation bonds
Note 13. Property, plant and equipment
Non-current assets
Land and buildings - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Consolidated
2023
$'000
2022
$'000
3,190
3,000
48
36
3,238
3,036
Consolidated
2023
$'000
2022
$'000
1,876
(110)
1,766
49,760
(12,169)
37,591
1,548
(44)
1,504
12,967
(3,405)
9,562
39,357
11,066
38
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 13. 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:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Additions
Additions through business combinations (note 36)
Additions through asset acquisition (note 34)
Disposals
Depreciation expense
Land and
buildings
$'000
Plant and
equipment
$'000
Total
$'000
748
800
(44)
1,504
-
303
-
-
(42)
11,633
1,334
(3,405)
9,562
3,775
26,905
1,797
(600)
(3,847)
12,381
2,134
(3,449)
11,066
3,775
27,208
1,797
(600)
(3,889)
Balance at 30 June 2023
1,765
37,592
39,357
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Buildings
Plant and equipment
40 years
3-7 years or unit of production
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to
the Consolidated Entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or
loss.
Note 14. Exploration and evaluation
Non-current assets
Exploration and evaluation - at cost
Less: Accumulated amortisation
Consolidated
2023
$'000
2022
$'000
172,040
(46,289)
17,508
-
125,751
17,508
39
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 14. Exploration and evaluation (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Balance at 30 June 2022
Additions
Additions through business combinations (note 36)
Additions through asset acquisition (note 34)
Amortisation expense
Balance at 30 June 2023
Accounting policy for exploration and evaluation assets
$'000
11,432
6,076
17,508
6,453
10,801
94,238
(3,249)
125,751
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be
recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration
activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the
existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned,
the expenditure incurred thereon is written off in the year in which the decision is made. The Consolidated Entity conducts
impairment testing when indicators of impairment are present at the reporting date.
Note 15. Mining development assets
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Amortisation expense
Balance at 30 June 2022
Additions through business combinations (note 36)
Expenditure during the year
Amortisation expense
Balance at 30 June 2023
Accounting policy for mining assets
$'000
18,750
8,534
(6,856)
20,428
64,815
12,755
(10,518)
87,480
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.
40
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 15. Mining development assets (continued)
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.
Restoration costs expected to be incurred are provided for as part of development phase that give rise to the need for
restoration.
Note 16. Trade and other payables
Current liabilities
Trade Creditors
Accruals
Other payables
Consolidated
2023
$'000
2022
$'000
20,219
26,303
1,225
7,367
4,637
-
47,747
12,004
Refer note 27 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 17. Borrowings
Current liabilities
Convertible notes payable (1)
Loan denominated in CAD$ (2)
Other Loans (3)
Hire Purchase
Non-current liabilities
Hire purchase
Consolidated
2023
$'000
2022
$'000
11,346
5,664
2,439
3,746
-
-
1,509
-
23,195
1,509
2,517
-
25,712
1,509
41
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 17. Borrowings (continued)
(1) In connection with the Vango Mining Limited acquisition (note 34), the Group has issued a convertible note with a
face value of $12,100,000 and a coupon rate of 10% per annum. The convertible note is repayable on 31 March
2024 but may be converted to equity before that time. The conversion feature has been accounted for as embedded
derivative with a fair value at 30 June 2023 of $403,333 presented as a derivative financial liability. The gain on the
revaluation of the embedded derivative of $600,000 has been recorded as Other Income as at 30 June 2023.
(2) Loan denominated in CAD$ relate to the loan recognised as part of the Superior Gold Inc acquisition (note 36),
following which the Consolidated Entity inherited of a standby Facility Agreement in place for CAD $5,000,000 (AUD
$5,664,000) as at 30 June 2023, which was drawn down prior to Catalyst acquiring Superior and bore interest at
1% per month. This loan had was converted to a gold loan by in July 2023.
(3) Other Loans include interest-bearing liability associated with insurance premium funding and other loans. They bear
interest at an average of 10.1% and are repayable between September 2023 and April 2024.
Refer note 27 for further information on financial instruments.
Assets pledged as security
As part of the acquisition of Superior Gold Inc (note 36) the gold loan with Auramet, which included the Call Options, was
secured by a first priority security interest over all of the subsidiary Billabong’s assets, with certain exclusions, an
assignment over all pertinent mining leases and a Guarantee from the Company, which was secured by a pledge of its
shares of Billabong.
Under the Gold Loan, the Company is subject to financial covenants requiring it to maintain a total minimum balance of
cash, cash equivalents and undrawn lines of credit of AUD$5.0 million and a restriction on additional indebtedness,
except for permitted indebtedness as agreed to between the Company and Auramet. The Company was also subject to
non-financial covenants, along with a restriction on liens. At 30 June 2023, the Gold Loan was in compliance with all
covenants.
The Hire Purchase loans are secured over the respective equipment.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the
statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market rate for an
equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis until
extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a
finance cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in
Shareholders equity as a convertible note reserve, net of transaction costs. The carrying amount of the conversion option
is not remeasured in the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss.
Note 18. Lease liabilities
Current liabilities
Lease liability
Non-current liabilities
Lease liability
Consolidated
2023
$'000
2022
$'000
2,126
639
5,979
8,105
124
763
42
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 18. Lease liabilities (continued)
Accounting policy for lease liabilities
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.
Note 19. Derivative financial instruments
Current liabilities
Call Options
Derivative Instruments - Convertible Notes
Consolidated
2023
$'000
2022
$'000
1,553
403
1,956
-
-
-
Refer to note 27 for further information on financial instruments.
Refer to note 36 for further information on the acquisition of Superior Gold Inc.
Accounting policy for derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on
whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Derivatives are classified as current or non-current depending on the expected period of realisation.
The fair value of derivative instruments not traded in an active market is determined by using valuation techniques. These
valuation techniques maximize the use of observable market data where available. If all significant inputs required to
measure the fair value of an instrument are observable, the instrument is included in Level 2. As at 30 June 2023, all the
Company’s derivative financial instruments have been classified as Level 2 financial instruments according to the
Company’s fair value hierarchy. The fair value of these instruments is determined using the Black-Scholes method.
The Consolidated Entity did not apply hedge accounting on its outstanding derivatives. Therefore, changes in fair value
are recorded in the Consolidated Statement of Profit or Loss and Other Comprehensive Income on a mark to market
basis and recorded in financial assets and liabilities.
Call Options
The table below summarises the information on the call options delivered as part of Superior's Secured Senior Gold Loan
(refer note 23)
Ounces
Weighted average price per ounce (in AUD$)
Fair Value
13,500
2,900
1,553
43
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 19. Derivative financial instruments (continued)
The fair value of these derivative instruments has been estimated using the Black Scholes option pricing model. The key
inputs used in the measurement of fair value as at 30 June 2023 of the Gold Loan are disclosed in the following table:
Call Options
Number of Options granted
Weighted average volatility
Risk-free interest rate
Estimated forfeiture rate
Expected dividend yield
Average Expected Life (years)
Weighted Average fair value
Derivative - Convertible Notes
13,500
13.00%
4.18%
-
-
0.5
$115.01
Refer note 17 for terms of the Convertible Notes.
The conversion feature attached to the Convertible Notes issued has been accounted for as an embedded derivative
recorded at fair-value as at 30 June 2023. The fair-value of these derivative instruments has been estimated using the
Black Scholes option pricing model. The key inputs used in the measurement of fair value as at 30 June 2023 of this
derivative instruments are as follows:
12,100,000
10,083,333
$0.77
$1.20
9
54.97%
2.96%
Derivative - Convertible Notes
Face Value
Number of options issuable
Spot price ($ per instrument)
Strike price ($ per instrument)
Expected Life (months)
Implied Volatility
Risk Free Rate
Note 20. Employee benefits
Current liabilities
Annual leave
Long service leave
Employee benefits
Non-current liabilities
Long service leave
Consolidated
2023
$'000
2022
$'000
8,840
126
-
967
-
622
8,966
1,589
1,035
711
10,001
2,300
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.
44
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 20. Employee benefits (continued)
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date 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
measured at 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 high quality corporate bonds with terms to maturity and currency that match, as
closely as possible, the estimated future cash outflows.
Note 21. Provisions
Current liabilities
Deferred consideration
Non-current liabilities
Deferred consideration
Rehabilitation provision
Rehabilitation
Consolidated
2023
$'000
2022
$'000
800
-
-
34,770
800
2,928
34,770
3,728
35,570
3,728
The provision for rehabilitation 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.
The Consolidated Entity assesses its rehabilitation provision annually. Significant judgment is required in determining the
provision for mine rehabilitation and closure as there are many factors that will affect the ultimate liability payable to
rehabilitate the mine sites, including future disturbances caused by further development, changes in technology, changes
in regulations, price increases, changes in timing of cash flows which are based on life of mine plans and changes in
discount rates. When these factors change or become known in the future, such differences will impact the mine
rehabilitation provision in the period in which the change becomes known.
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Consolidated - 2023
Carrying amount at the start of the year
Additions through business combinations (note 36)
Additions through asset acquisition (note 34)
Carrying amount at the end of the year
45
Rehabilitation
$'000
Deferred
Consideration
$'000
2,928
27,878
3,964
34,770
800
-
-
800
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 21. Provisions (continued)
Accounting policy for provisions
Provisions are recognised when the Consolidated Entity has a present (legal or constructive) obligation as a result of a
past event, it is probable the Consolidated Entity will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding
the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to
the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.
Deferred consideration
On 20 January 2021, the group acquired 100% of the shares and voting rights in Unity Mining Pty Ltd and its 100%
owned subsidiary, Henty Gold Mine Pty Ltd (the entity that owned the Henty Gold Mine asset).
Deferred share consideration on the purchase has been deferred for a minimum of 3 years after purchase at a value of
$800,000. The deferred consideration has been reclassified as a current liability as at 30 June 2023.
Note 22. Advances
Current liabilities
Advances from Joint Venture Partners
Advances on gold sales
Consolidated
2023
$'000
2022
$'000
253
7,990
1,515
-
8,243
1,515
The (receivable) / advance from Joint Venture Partners relate 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 Four Eagles, Tandarra, Boort and Drummartin projects respectively.
Advances on gold sales relate to monies advanced from a customer on future sales of gold.
Note 23. Deferred revenue
Current liabilities
Deferred revenue
Consolidated
2023
$'000
2022
$'000
6,316
-
Prior to the acquisition of Superior Gold Inc (note 36) by the Company, Superior Gold Inc. and its wholly-owned subsidiary
Billabong Gold Pty Ltd ('Superior') entered into a Senior Secured Gold Loan ('Gold Loan') agreement (dated 7 October
2022) under which the Superior received gross proceeds of AUD$10 million before associated costs.
46
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 23. Deferred revenue (continued)
In connection with the Gold Loan, Superior:
●
●
●
●
Was required to deliver a total of 4,140 ounces of gold over 18 equal monthly instalments beginning on 30 January
2023 and terminating on 30 June 2024.
Granted the lender 13,500 gold call options (“Call Options”) at a strike price of AUD$2,900 per ounce of gold. These
Call Options had expiry dates between August 2023 and 30 April 2024 and are up to a maximum of 1,500 ounces
per month.
Entered into a zero-cost collar price protection program with 10,000 puts at strike prices ranging from AUD$2,475
to AUD$2,500 per ounce and 10,000 of calls with strike prices ranging from AUD$2,780 to AUD$2,800. Both the
puts and calls have expiry dates between 31 January 2023 and 31 October 2023 and are up to a maximum of 1,000
ounces per month, and
Agreed to sell a minimum of 80% of its gold production at market prices from the Plutonic Gold Operations to the
lender for a period that is not less than 6 months following delivery of the 4,140 ounces.
As at 30 June 2023, 2,760 ounces of gold are deliverable under the Gold Loan, with 2,760 ounces classified as current.
The Gold Loan, which included the Call Options, was secured by a first priority security interest over all of Billabong’s
assets, with certain exclusions, an assignment over all pertinent mining leases and a Guarantee from the Company,
which was secured by a pledge of its shares of Billabong.
Note 24. Issued capital
Consolidated
2023
Shares
2022
Shares
2023
$'000
2022
$'000
Ordinary shares - fully paid
Options - Listed
219,062,544 98,456,148
-
-
200,831
158
73,081
158
219,062,544 98,456,148
200,989
73,239
Movements in ordinary share capital
Details
Date
Shares
Issue price
$'000
Balance
Issue of shares - to directors
Issue of shares - to consultants
Exercise of listed options
Balance
Issue of shares capital raising
Less: Transaction costs arising on share issue
Acquisition of Vango Mining
Acquisition of Superior Gold Inc
1 July 2021
30 June 2022
98,295,723
135,000
25,000
425
98,456,148
21,600,000
-
54,778,675
44,227,721
$2.03
$2.03
$2.45
$1.00
$0.00
$1.36
$0.75
72,755
274
51
1
73,081
21,600
(1,441)
74,420
33,171
Balance
30 June 2023
219,062,544
200,831
47
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 24. Issued capital (continued)
Movements in Options - Listed
Details
Balance
Exercise of options
Lapse of options
Balance
Ordinary shares
Date
Options
Issue price
$'000
1 July 2021
7,881,996
(425)
(7,881,571)
$0.00
$0.00
30 June 2022
-
157,785
-
-
157,785
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.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so
that it can provide returns for Shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of dividends paid to
Shareholders, return capital to Shareholders, issue new shares or sell assets to reduce debt.
The Consolidated Entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current Company's share price at the time of the investment. The Consolidated Entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
The Consolidated Entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the
financial year.
The capital risk management policy remains unchanged from the 2022 Annual Report.
Accounting policy for 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.
Note 25. Reserves
Share-based payments reserve
Consolidated
2023
$'000
2022
$'000
2,395
493
48
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 25. Reserves (continued)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their
remuneration, and other parties as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2021
Issue of options - to former CEO (EIS)
Balance at 30 June 2022
Issue of replacement options
Issue of Performance Rights - to Managing Director
Balance at 30 June 2023
Performance Rights
Share-based
payments
Reserve
$'000
373
120
493
32
1,870
2,395
2,500,000 performance rights were granted to the Managing Director on 17 November 2022. The performance rights
expire on 30 September 2026 and vest upon the Company’s achieving performance hurdlers. As at 30 June 2023, a
probability of 100% was assigned for satisfaction of the vesting conditions. The share price on the grant date was $1.35
resulting in a total fair value of $3,375,000.
The performance rights are recognised over the vesting period.
Tranches Performance Hurdle
Quantity
Tranche 1
Tranche 2
Tranche 3
Successful capital raising of $10 million or
Actual annual gold production of 40,000oz
in rolling 12-month period.
Actual annual gold production of 80,000oz
in rolling 12-month period.
Actual annual gold production of 100,000oz
in rolling 12-month period.
700,000
800,000
1,000,000
Value recognised
during the period
$'000
Value to be
recognised in
future years over
the vesting period
$'000
945
411
514
-
669
836
2,500,000
1,870
1,505
Note 26. Accumulated losses
Accumulated losses at the beginning of the financial year
Profit/(loss) after income tax expense for the year
Accumulated losses at the end of the financial year
49
Consolidated
2023
$'000
2022
$'000
(16,012)
(15,599)
(18,103)
2,091
(31,611)
(16,012)
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 27. Financial instruments
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 risk
Foreign currency risk
The Consolidated Entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The carrying amount of the Consolidated Entity's foreign currency denominated financial assets and financial liabilities
at the reporting date were as follows:
Consolidated
Canadian dollars
Assets
Liabilities
2023
$'000
2022
$'000
2023
$'000
2022
$'000
1,955
-
6,164
-
The Consolidated Entity had net liabilities denominated in foreign currencies of $4,209,000 (assets of $1,955,000 less
liabilities of $6,164,000) as at 30 June 2023 (2022: $NIL). As the exposure to foreign exchange risk has arisen following
the acquisition of Superior Gold Inc. on 29 June 2023, the exposure was minimal for the current year.
Price risk
The Consolidated Entity is exposed to commodity price risk arising from gold and other metals held for 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 are exposed to fluctuations in the price of these metals. If the
average selling price of gold of $2,710/oz (2022: $2,529/oz) for the financial year had increased/decreased by 10%, the
change in the loss before income tax for the Consolidated Entity would have been an increase/decrease of $6,946,274
(2022: $5,965,581).
Interest rate risk
The Consolidated Entity's main interest rate risk arises from the Consolidated Entity's short-term deposits with floating
interest rates. These financial assets with variable rates expose the Consolidated Entity to cash-flow interest rate risk.
The Consolidated Entity's interest-bearing liabilities all have a fixed interest rate and therefore do not expose the
Consolidated Entity to cash-flow interest rate risk. All other financial assets and liabilities in the form of receivables and
payables are non-interest bearing. The Consolidated Entity does not engage in any hedging or derivative transactions to
manage interest rate risk.
50
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 27. Financial instruments (continued)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Consolidated Entity. The Consolidated Entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The Consolidated Entity obtains guarantees where
appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial
assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of
financial position and notes to the financial statements. The Consolidated Entity does not hold any collateral.
The Consolidated Entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the Consolidated Entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
The Consolidated Entity's credit exposure as at 30 June 2023 is relatively minimal, with trade receivables kept at a low
level (refer note 9 for a breakdown of Trade and Other receivables).
Liquidity risk
Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities
by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Remaining contractual maturities
The following tables detail the Consolidated Entity's remaining contractual maturity for its financial instrument liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed
as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of
financial position.
Consolidated - 2023
Non-derivatives
Non-interest bearing
Trade payables
Advances
Deferred Consideration
Interest-bearing - fixed rate
Deferred Revenue
Hire purchase
Lease liability
Other loans
Total non-derivatives
Derivatives
Call options
Derivative instruments - Convertible Notes
Total derivatives
Weighted
average
interest rate
%
1 year or
less
$'000
Between 1
and 2 years
$'000
Remaining
contractual
maturities
$'000
-
-
-
13.87%
5.40%
6.50%
10.54%
-
-
47,747
8,243
800
6,316
3,746
2,126
19,449
88,427
1,553
403
1,956
-
-
-
-
2,517
5,979
-
8,496
-
-
-
47,747
8,243
800
6,316
6,263
8,105
19,449
96,923
1,553
403
1,956
51
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 27. Financial instruments (continued)
Consolidated - 2022
Non-derivatives
Non-interest bearing
Trade and other payables
Advances
Deferred payables
Interest-bearing - fixed rate
Other loans
Lease liability
Total non-derivatives
Letter of Guarantee Facility
Weighted
average
interest rate
%
1 year or
less
$'000
Between 1
and 2 years
$'000
Remaining
contractual
maturities
$'000
-
-
-
3.45%
4.16%
12,003
1,515
-
1,509
639
15,666
-
-
800
-
124
924
12,003
1,515
800
1,509
763
16,590
The Consolidated Entity has an AUD$5.5 million Guarantee Credit Facility, amended 30 April 2021, (the “Credit Facility”)
with a leading international bank. The Credit Facility permits the Company to issue letters of guarantee for a term of up
to 12 months to various suppliers from time to time to support the Plutonic Gold Operations.
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 28. Key management personnel disclosures
Disclosures relating to key management personnel are set out in the remuneration report included in the directors' report.
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Consolidated
Entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2023
$'000
2022
$'000
910
83
1,870
1,411
134
415
2,863
1,960
Detailed remuneration disclosures are provided in the Remuneration Report section of the Directors' Report.
Consolidated
2023
$'000
2022
$'000
Payment for services from Raisemetrex Pty Ltd (Company related to Mr Boston)
45
60
52
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 28. Key management personnel disclosures (continued)
Receivable from and payable to related parties
There was $177,600 due to Catalyst's Managing Director Mr Champion de Crespigny for consulting services provided to
the Consolidated Entity. This has been paid subsequent to the balance sheet date but before the issue of this report.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date. Amounts owed to / from joint-
venture partners have been disclosed in note 22.
Terms and Conditions
All transactions with related parties were made on normal commercial terms and conditions and at market rates.
Note 29. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the
auditor of the Company:
Audit services - RSM Australia Partners
Audit or review of the financial statements
Other services - RSM Australia Partners
Audit of joint venture financial statements
Other assurance services
Consolidated
2023
$'000
2022
$'000
292
108
21
27
48
21
-
21
340
129
Note 30. Contingent assets
The Group does not have any contingent assets as at 30 June 2023.
Note 31. Contingent liabilities
The Consolidated Entity has issued cash-back bank guarantees as at 30 June 2023 of $3,246,475 (2022: $NIL) to a
number of vendors.
In addition, as a result of the acquisition of Superior, the Consolidated Entity has in place a $5,500,000 Letter of
Guarantee bank facility. This facility has been used to provide letters of guarantee to various vendors for a total of
$5,330,167, leaving an unused facility as at 30 June 2023 of $169,833.
The Credit Facility includes an aggregate fee of 3.23% calculated on drawn amounts and is secured by an assignment
of a performance security guarantee issued by Export Development Canada in support of the Plutonic Gold Operations.
The Credit Facility contains covenants customary for a loan facility of this nature, including limits on indebtedness and
change of control. It contains a financial covenant test requiring that the Company maintain a minimum liquidity covenant
of AUD$5.0 million. At 30 June 2023, the Company was in compliance with all covenants.
53
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 31. Contingent liabilities (continued)
A subsidiary of Vango Mining Limited, Sino Australia Resources (Laos) Co., Ltd (SARCO) is a joint venture project
between Vango (49%) and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd
(NFC)(51%). Until 30 September 2009, Vango solely funded all exploration activities conducted by SARCO in Laos and
since 1 October 2010 NFC has been funding ongoing exploration activities. In accordance with the Joint Venture
agreement, at the time NFC’s contribution had reached the level of Vango’s initial contribution, both Vango and NFC are
obliged to contribute their respective share of funding requirements for any further activity. An audit of Vango’s
contributions to SARCO JV expenditures from inception to 30 September 2009 was performed by NFC in 2012. On
completion, NFC challenged a total of $1.1 million in expenditure that is currently included as part of the total Company
contribution by the Consolidated Entity, although no formal claim has been made by NFC. The amount in dispute is
$1,109,000 which forms the contingent liability. Vango has the right to audit the NFC contributions. At this time no such
audit has been undertaken, although any findings from such an audit may constitute a future claim by Vango on NFC.
Contingent Consideration
As part of the acquisition of the Plutonic Gold Operations by Superior Gold Inc., Superior agreed to pay Northern Star
Resources Inc. milestone payments (“Milestone Payments”) of AUD$2.5 million for every 250,000 ounces of NI 43-101
compliant measured and indicated resources identified at the Plutonic Gold Operations in excess of the 1,717,000 ounces
of Joint Ore Reserves Committee 2012 compliant measured, indicated and inferred resources. The aggregate of the
Milestone Payments is capped at AUD$10 million.
The fair value of the Milestone Payments was determined to have $nil value at the date of acquisition of Superior Gold
Inc. by Catalyst and as at 30 June 2023 as Management determined the Plutonic Gold Operations do not currently meet
the stated threshold and that it is uncertain that the threshold outlined in the Acquisition Agreement of 1,717,000 ounces
of Joint Ore Reserves Committee 2012 compliant measured, indicated and inferred resources will be reached.
K2 earn-in dispute
On 25 May 2020, Zuleika Gold commenced legal proceedings against Vango Mining Limited and Dampier (Plutonic)
Gold Ltd (now both wholly owned subsidiaries of Catalyst), seeking a determination that Vango and Dampier (Plutonic)
Pty Ltd had (allegedly) breached a binding term sheet dated 12 May 2017 which allowed Zuleika to earn up to a 50%
interest in the K2 gold deposit and that Zuleika had in fact earned an interest (ranging from 4.1% to 11.87%).
On 31 October 2022, the WA Supreme Court determined that Zuleika had earned a 4.1% interest in M52/183 (the K2
gold deposit tenement) and ordered Vango to transfer that interest in the tenement and pay Zuleika's legal costs. Vango
has lodged an appeal against this decision. The issue of damages arising out of any established liability will be heard
following the completion of the appeal.
Note 32. Commitments
Consolidated
2023
$'000
2022
$'000
12,502
2,676
6,892
5,610
1,527
1,148
12,502
2,675
Tenement Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Exploration and evaluation expenditure on tenements
Committed at the reporting date but not recognised as liabilities
Within one year
One to five years
Note 33. Related party transactions
Parent entity
Catalyst Metals Limited is the parent entity.
54
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 33. Related party transactions (continued)
Subsidiaries
Interests in subsidiaries are set out in note 37.
Joint ventures
Interests in joint ventures are set out in note 38.
Key management personnel
Disclosures relating to key management personnel are set out in note 28 and the remuneration report included in the
Directors' report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 34. Asset Acquisition
On 10 January 2023, Catalyst issued a bid to acquire Vango Mining Limited (“Vango), offering 5 Catalyst shares for every
115 Vango shares. On the 7th February 2023, Catalyst exceeded 50% ownership of Vango with the 90% compulsory
acquisition threshold met on 21 February 2023. At the close of the takeover offer period on 6 March 2023, Catalyst held
a relevant interest in 94.6% of Vango shares. Following completion of the compulsory acquisition process, Catalyst
owned 100% of Vango Shares. Catalyst completed the compulsory acquisition on the 21 March 2023.
Management has determined the acquisition of the 100% interest into Vango does not meet the definition of a business
within AASB 3 Business Combinations. This Transaction has been accounted for as an asset acquisition.
Management has considered pertinent facts and circumstances in identifying the acquisition date and concluded the
completion of the compulsory acquisition process represents the closing date of the asset acquisition.
The fair value of the consideration paid amounted to $74,420,000 and comprised the issue of 54,778,675 shares issued
as consideration to the shareholders of Vango. Transaction costs were capitalised consistent with acquisition accounting
principles.
Details of the purchase consideration are as follows:
Ordinary shares issued
Transaction costs
$'000
74,420
5,040
79,460
55
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 34. Asset Acquisition (continued)
The fair value of the purchase consideration has been allocated to the assets acquired and liabilities assumed as per the
table below:
Cash and cash equivalents
Other current assets
Plant & Equipment
Exploration & Evaluation
Other payables
Borrowings
Provisions
Net assets acquired
Other information
$'000
2,993
153
1,797
94,238
(2,957)
(12,800)
(3,964)
79,460
The acquired asset contributed nil revenue from continuing operations and loss before tax of $287,000 to Catalyst Metals
Limited for the period from 7 February 2023 to 30 June 2023.
Note 35. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Options reserve
Accumulated losses
Total equity
56
Parent
2023
$'000
2022
$'000
(15,139)
3,004
(15,139)
3,004
Parent
2023
$'000
2022
$'000
132,731
8,263
194,461
58,122
21,855
22,688
861
861
200,988
1,870
525
(31,610)
73,239
493
-
(16,471)
171,773
57,261
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 35. Parent entity information (continued)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
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 associates are accounted for at cost, less any impairment, in the parent entity.
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.
Note 36. Business combinations
On 29 June 2023, the Consolidated Entity acquired 100% of the ordinary shares of Superior Gold Inc., a Canadian-based
gold producer that owns 100% of the Plutonic Gold Operations located in Western Australia, through its wholly-owned
subsidiary Billabong Gold Pty Ltd.
The Plutonic Gold Operations include the Plutonic underground gold mine and central mill, numerous open-pit projects,
and an interest in the Bryah Basin joint venture. It was acquired with a view to create a robust mid-tier gold producer,
mainly through the consolidation of the Plutonic-Marymia gold belt.
The total consideration transferred was $33,201,860. The acquisition was completed on 29 June 2023 and the
accounting for the business combination as at 30 June 2023 is provisional.
The acquired business contributed revenues of $NIL and profit after tax of $NIL to the Consolidated Entity for the period
from 29 June 2023 to 30 June 2023. If the acquisition occurred on 1 July 2022, the full year contributions would have
been revenues of $224,786,872 and loss after tax of $52,643,407.
57
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 36. Business combinations (continued)
Details of the acquisition are as follows (provisional):
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Plant and equipment
Right-of-use assets
Mining Development assets
Exploration and evaluation
Trade and other payables
Other payables
Borrowings
Derivative financial instruments
Employee benefits provisions
Rehabilitation Provisions
Deferred revenue
Lease liability
Acquisition-date fair value of the total consideration transferred
Representing:
Catalyst Metals Limited shares issued to vendor (1)
Replacement options issued
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
Less: cash and cash equivalents
Less: shares issued as part of consideration
Less: replacement options issued as part consideration
Net cash received
(1) 44,227,721 ordinary shares issued at $0.75 per share
Accounting policy for business combinations
Fair value
$'000
5,265
4,062
13,024
172
27,208
7,466
64,815
10,801
(35,301)
(1,225)
(11,541)
(1,553)
(7,814)
(27,878)
(6,317)
(7,982)
33,202
33,171
31
33,202
Consolidated
2023
$'000
2022
$'000
33,202
(5,265)
(33,171)
(31)
(5,265)
-
-
-
-
-
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.
58
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 36. Business combinations (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.
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.
Note 37. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Name
Silkfield Holdings Pty Ltd
Kite Gold Pty Ltd
Kite Operations Pty Ltd
Tandarra Management Pty Ltd
Nomad Metals Pty Ltd
Unity Mining Pty Ltd
Henty Gold Pty Ltd
Four Eagles JV Property Pty Ltd
Vango Mining Ltd
Dampier Plutonic Pty Ltd
Tanami Northern Gold Pty Ltd
Nicholson East Pty Ltd
Nicholson West Pty Ltd
Suplejack Pty Ltd
Coolan Yard Pty Ltd
Ord River Resources (PNG) Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
2022
2023
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
50.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
50.00%
-
-
-
-
-
-
-
-
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
59
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 37. Interests in subsidiaries (continued)
Name
Aileigh Pty Ltd
Carpe Diem Limited
Tampara Limited
Rotokas Limited
Superior Gold Inc
Billabong Gold Pty Ltd
Note 38. Interests in joint ventures
Principal place of business /
Country of incorporation
Ownership interest
2022
2023
%
%
British Virgin Islands
Papua New Guinea
Papua New Guinea
Papua New Guinea
Canada
Australia
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
-
-
-
-
-
Interests in joint ventures are accounted for using the equity method of accounting. Information relating to joint ventures
that are material to the Consolidated Entity are set out below:
Name
Principal place of business /
Country of incorporation
Ownership interest
2022
2023
%
%
Bryah Basin Joint Venture
Australia
80.00%
-
Note 39. Events after the reporting period
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future
financial years.
Note 40. Cash flow information
Reconciliation of profit/(loss) after income tax to net cash from operating activities
Profit/(loss) after income tax expense for the year
(15,599)
2,091
Consolidated
2023
$'000
2022
$'000
Adjustments for:
Depreciation and amortisation
Finance charges (non-cash)
Share based payments
Exploration costs (expensed)
Derecognised contingent consideration
Mark-to-market of derivative financial instruments
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventory
Increase in trade and other payables
Increase in other provisions
14,422
430
1,870
67
-
(600)
1,954
1,117
2,630
1,568
10,343
-
446
-
(5,000)
-
(641)
(1,807)
1,560
-
Net cash from operating activities
7,859
6,992
60
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 41. Earnings per share
Earnings per share for profit/(loss) from continuing operations
Profit/(loss) after income tax attributable to the Owners of Catalyst Metals Limited
Consolidated
2023
$'000
2022
$'000
(15,599)
2,091
Consolidated
2023
$'000
2022
$'000
Profit/(loss) after income tax attributable to the Owners of Catalyst Metals Limited
(15,599)
2,091
Weighted average number of ordinary shares used in calculating basic earnings per
share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
123,411,952
98,391,985
-
250,000
Weighted average number of ordinary shares used in calculating diluted earnings per
share
123,411,952
98,641,985
Number
Number
Basic earnings per share
Diluted earnings per share
Accounting policy for earnings per share
Basic earnings per share
Cents
Cents
(12.64)
(12.64)
2.13
2.12
Basic earnings per share is calculated by dividing the profit attributable to the Owners of Catalyst Metals Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
As the Consolidated Entity is in a net loss position for the year ended 30 June 2023, the grants of performance rights
and the potential shares to be issued on conversion of the convertible notes have not been included in the Diluted
earnings per share.
Note 42. 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 Consolidated Entity 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 of Directors.
61
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 42. Share-based payments (continued)
Set out below are summaries of performance rights granted under the Incentive Plan:
2023
Grant date
Expiry date
price
the year
Granted
Balance at
Exercise the start of
Expired/ Balance at
the end of
the year
forfeited/
other
Exercised
17/11/2022
17/11/2022
17/11/2022
30/06/2026
30/06/2026
30/06/2026
$0.00
$0.00
$0.00
-
-
-
-
700,000
800,000
1,000,000
2,500,000
-
-
-
-
-
-
-
-
700,000
800,000
1,000,000
2,500,000
Refer note 25 for details on the performance conditions attached to the performance rights.
During the previous year, the Company issued 250,000 options to key management personnel of the Consolidated Entity
as part of their remuneration package for FY2022.
2023
Grant date
Expiry date
price
the year
Granted
Balance at
Exercise the start of
Expired/ Balance at
the end of
the year
forfeited/
other
Exercised
22/10/2021
30/11/2024
$3.00
250,000
250,000
-
-
-
-
-
-
250,000
250,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.4 years
(2022: 2.6 years).
Set out below are the performance rights exercisable at the end of the financial year:
Grant date
Expiry date
30/11/2022
30/11/2022
30/11/2022
30/06/2026
30/06/2026
30/06/2026
2023
2022
Number
Number
700,000
-
-
700,000
-
-
-
-
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 3
years.
No shares were issued as compensation during the year.
During the year ended 30 June 2022, 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.
Accounting policy for 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.
62
Catalyst Metals Limited
Notes to the consolidated financial statements
30 June 2023
Note 42. Share-based payments (continued)
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of
the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that
do not determine whether the Consolidated Entity receives the services that entitle the employees to receive payment.
No account is taken of any other vesting conditions.
The cost of equity-settled transactions is 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.
63
Catalyst Metals Limited
Directors' declaration
30 June 2023
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the Consolidated Entity's financial position
as at 30 June 2023 and of its performance for the financial year ended on that date; 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.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
James Champion de Crespigny
Managing Director & CEO
29 September 2023
64
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 2023, 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 2023 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.
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.
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Liability limited by a scheme approved under Professional Standards Legislation
Key audit matter
How our audit addressed this matter
Going concern
Refer to Note 1 in the financial statements
At 30 June 2023, the Group has incurred a net loss of $15,599,000
during the year ended 30 June 2023 and, as of that date, the
Group’s current
its current assets by
$44,028,000.
liabilities exceeded
The Directors have prepared the financial report on the going
concern basis. Mitigating factors have been disclosed in Note 1 to
the financial statements.
The achievement of the cash flow forecasts are subject to future
events, some of which are beyond the direct control of the Group.
Our audit procedures included:
Assessing and discussing with management and Directors the
reasonableness of the Group’s cash flow forecast for the 15-
month period ended 30 September 2024;
Checking the mathematical accuracy of management’s cash
flow forecast;
Challenging the reasonableness of the key assumptions and
mitigating factors used by management in the cash flow
forecast by comparison to our knowledge of the business and
supporting documentation;
Assessing the sensitivity of the key assumptions within
management’s cash flow forecast, particularly in relation to
forecast sales and debt/equity funding; and
Assessing the adequacy of disclosures made in the financial
report.
Carry values of Henty Mine Assets
Refer to Note 2 (Impairment of non-financial assets other than goodwill and other indefinite life intangible assets) in the financial statements
Australian Accounting Standards require the Group to assess in
respect of the reporting period, whether there are any indications
that an asset may be impaired.
If any such indication exists, an entity shall estimate the recoverable
amount of the asset or Cash Generating Unit (CGU).
At year end, management identified impairment indicators in respect
of the Henty Mine CGU.
The assessments for indicators of impairment by management
requires the exercise of judgment and include a range of external
and internal factors.
Where impairment indicators are identified, forecasting cash flows
for the purpose of determining the recoverable amount of a CGU
involves critical accounting estimates and judgements and is
affected by expected future performance and market conditions.
Management concluded that impairment of the CGU was not
required for the year ended 30 June 2023.
We determined this area to be a key audit matter due to the
significant account balance and the level of management estimates
and judgement involved in the preparation of the impairment model
to support the carrying values as discussed above and the overall
complexities of this process.
Our audit procedures included:
Assessing the Group’s accounting policy for compliance with
Australian Accounting Standards;
Considering the Group’s determination of Henty Mine CGU
based on our understanding of the operations of the Henty Mine
and how
identifiable Henty Mine CGU generate
the
independent cash inflows;
Considering the appropriateness of the value in use model
applied by the Group to assess the carrying value of Henty Mine
CGU.
Challenging the reasonableness of key assumptions used in the
value in use model, including the:
o
o
Future production levels and operations expenditure;
Future commodity prices;
o Discount rate applied; and
o
Life of Mine model;
Considering the sensitivity of the value in use model by varying
key assumptions, including those noted above, within a
reasonably possible range;
Working with our valuation specialists, we developed a discount
rate range considered comparable using publicly available
market data for comparable entities and assessed the integrity
of the value in use model used;
Checking the mathematical accuracy of the value in use model
and reconciling input data to supporting evidence, such as
approved budgets and considering the reasonableness of these
budgets; and
Assessing the adequacy disclosures included in the financial
statements.
Key audit matter
How our audit addressed this matter
Accounting for the asset acquisition of Vango Mining
Refer to Note 34 in the financial statements
On 10 January 2023, Catalyst issued a bid to acquire Vango Mining
Limited (“Vango), offering 5 Catalyst shares for every 115 Vango
shares. Following completion of the compulsory acquisition process,
Catalyst owned 100% of Vango Shares.
Management has determined the acquisition of the 100% interest
into Vango does not meet the definition of a business within AASB
3 Business Combinations. This transaction has been accounted for
as an asset acquisition.
The fair value of the consideration paid amounted to $74,420,000
and comprised
issued as
consideration to the shareholders of Vango. Transaction costs of
$5,040,000 were capitalised consistent with acquisition accounting
principles.
issue of 54,778,675 shares
the
We determined this area to be a key audit matter due to the
significance of this transaction and complexities and level of
management judgement and estimates involved in the above
assessment and the determination of the fair value of consideration
paid and assets and liabilities acquired.
Accounting for the acquisition of Superior Gold
Refer to Note 36 in the financial statements
On 29 June 2023, the Group acquired 100% of the shares and
voting rights in Superior Gold Inc., a Canadian-based gold producer
that owns 100% of the Plutonic Gold Operations located in Western
Australia, through its wholly-owned subsidiary Billabong Gold Pty
Ltd. The total consideration transferred was $33,201,860.
The Plutonic Gold Operations include the Plutonic underground gold
mine and central mill, numerous open-pit projects, and an interest
in the Bryah Basin joint venture.
Management has determined the acquisition meets the definition of
a business within AASB 3 Business Combinations. The accounting
for the business combination has been performed on a provisional
basis as at 30 June 2023.
We determined this area to be a key audit matter due to the
significance of this transaction and complexities and level of
management judgement and estimates involved in the above
assessment and the determination of the fair value of consideration
paid and assets and liabilities acquired.
Our audit procedures included:
Assessing the Group’s accounting policy for compliance with
Australian Accounting Standards;
Reading the acquisition agreements to understand the transaction,
acquisition date and the related accounting considerations;
Critically evaluating management’s determination that the acquisition
did not meet the definition of a business within AASB 3 Business
Combinations and therefore was an asset acquisition;
Assessing management’s determination of the acquisition date, fair
value of the consideration paid and the fair value of the assets and
liabilities acquired; and
Assessing the adequacy disclosures included in the financial
statements.
Our audit procedures included:
Assessing the Group’s accounting policy for compliance with
Australian Accounting Standards;
Reading the acquisition agreements to understand the transaction,
acquisition date and the related accounting considerations;
Critically evaluating management’s determination that the acquisition
meet the definition of a business within AASB 3 Business
Combinations;
Assessing management’s determination of the acquisition date, fair
value of the consideration paid and the fair value of the assets and
liabilities acquired; and
Assessing the adequacy disclosures included in the financial
statements.
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 2023, 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 2023.
In our opinion, the Remuneration Report of Catalyst Metals Limited, for the year ended 30 June 2023, 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
29 September 2023
MATTHEW BEEVERS
Partner