ANNUAL
REPORT
2022
AUSTRALIA
Level 2, 1 Ord Street
West Perth, WA 6005
PO Box 975, West Perth, WA 6872
T: +61 8 6424 8420
BRAZIL
Edifício Century Tower
Rua Maria Luiza Santiago, 200
Santa Lúcia, 17ª Andar - Sala 1703
Belo Horizonte - MG - CEP: 30360-740
BRAZIL
T: +55 31 3194 7750
ACN 009 468 099
www.centaurus.com.au
Highlights ....................................................................................4
Chair’s Report ............................................................................5
Focus For The Year Ahead .....................................................7
Nickel Market & Price .............................................................8
Environmental, Social & Governance ................................9
Strategy & Key Assets In Brazil .......................................11
Jaguar Nickel Sulphide Project .........................................12
Greenfields Exploration Pipeline ......................................23
Jambreiro Iron Ore Project .................................................24
Corporate ..................................................................................25
Tenement List ...........................................................................30
Additional Shareholder Information ................................31
Corporate Governance Statement ....................................32
Financial Report 31 December 2022 ............................. 33
CENTAURUS METALS ANNUAL REPORT 2022
Corporate Directory
DIRECTORS
Mr D M Murcia AM, B. Juris, LL.B
Non-Executive Chair
Mr D P Gordon B.Bus, FCA, AGIA, ACG, MAICD
Managing Director
Mr B R Scarpelli M.Sc, PMP
Executive Director
Mr M D Hancock B.Bus, CA, F Fin
Non-Executive Director
Mr C A Banasik B.App.Sc (Physics), M.Sc (Geology), Dip Ed,
GAICD
Non-Executive Director
Dr N Streltsova MSc, PhD(Chem Eng), GAICD
Non-Executive Director
COMPANY SECRETARY
Mr J W Westdorp B.Bus, CPA, Grad Dip App Sc, MAICD
Chief Financial Officer / Company Secretary
SHARE REGISTRY
Advanced Share Registry Limited
110 Stirling Highway
Nedlands WA 6009
Telephone: (08) 9389 8033
AUDITORS
KPMG
Chartered Accountants
235 St Georges Terrace
Perth WA 6000
BANKERS
Australia
National Australia Bank
Level 14, 100 St Georges Tce
Perth WA 6000
Brazil
Banco Inter
Avenida Barbacena, 1219 – Santo Agostinho
Belo Horizonte - MG – CEP: 30190-924
BRAZIL
Telephone: +55 31 2101 7006
STOCK EXCHANGE LISTING
Centaurus Metals Limited’s shares are listed on the Australian
Securities Exchange and the OTC Ordinary fully paid shares
(ASX code: CTM OTC: CTTZF.)
PRINCIPAL & REGISTERED OFFICE
Australia
Level 2, 1 Ord Street
West Perth WA 6005
PO Box 975
West Perth WA 6872
Telephone: (08) 6424 8420
Email: office@centaurus.com.au
Website: www.centaurus.com.au
Brazil
Edifício Century Tower
Rua Maria Luiza Santiago, 200
Santa Lúcia, 17ª Andar - Sala 1703
Belo Horizonte - MG - CEP: 30360-740
BRAZIL
Telephone: +55 31 3194 7750
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Contents
Highlights ......................................................................................4
Chair’s Report ...............................................................................5
Focus for the Year Ahead ............................................................7
Nickel Market & Price ..................................................................8
Environmental, Social & Governance .......................................9
Strategy & Key Assets in Brazil .............................................. 11
Jaguar Nickel Sulphide Project ................................................12
Greenfields Exploration Pipeline ............................................21
Jambreiro Iron Ore Project ......................................................22
Corporate ....................................................................................23
Mineral Resources & Ore Reserves .......................................24
Tenement List..............................................................................27
Additional Shareholder Information ........................................28
Corporate Governance Statement...........................................29
Financial Report 31 December 2022 ..................................... 30
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Highlights
EXPLORATION & DEVELOPMENT
→ Updated JORC 2012 Mineral Resource Estimate (MRE) delivered
in November 2022, confirming the Jaguar Nickel Sulphide
Project as one of the world’s premier near-surface nickel
sulphide development projects, with the Jaguar Global MRE
growing to now contain an estimated:
• GLOBAL: 108.0Mt @ 0.87% Ni for 938,500 tonnes of contained
nickel.
→ Measured and Indicated component of the Global MRE
increased by over 100% to:
• MEASURED & INDICATED: 85.8Mt @ 0.85% Ni for 730,300
tonnes of contained nickel.
→ High-grade component of the MRE increased to 28.6Mt @
1.51% Ni for 431,800 tonnes of contained nickel, with 30% of this
resource located within 100m of surface.
→ Key work programs for the Jaguar Definitive Feasibility Study
(DFS) were well advanced during the year, with the DFS delivery
date scheduled for late Q4 2023. Key work programs during
2022 have included:
• Industry‐leading engineering firm Ausenco appointed as Lead
Engineer to deliver both the process and non‐process plant
infrastructure components of the DFS.
• Pricing proposals have been received from mining
contractors to support the development of the DFS OPEX,
open pit optimisations and mine planning work. Commercial
and technical evaluation of the proposals is underway.
• Process design for the concentrator circuit of the processing
facility has been finalised and major equipment pricing
received from suppliers. Commercial and technical
evaluation is well advanced.
• Process design and the layout of the refinery circuit and
non-process plant infrastructure (NPI) has commenced.
• Set-up of the pilot plant at ALS Laboratories in Perth for the
refinery circuit was completed just prior to year-end, with
initial results from the multi-phase pilot testwork program
(post year end) confirming high leach extraction of nickel
at 98.6%.
• Initial design and licencing work has commenced to connect
to the 230kV national power grid for the Project’s integrated
concentrator and refining circuit power requirements.
Figure 1: Jaguar Project Site
• Geotechnical drilling for the final design of the roads and
bridges from Tucumá and Ourilândia do Norte to site is
complete.
• Jaguar Nickel Sulphide Project was selected as a Strategic
Minerals Project by the Brazilian Federal Government as
part of a new program designed to support projects deemed
strategic to Brazil.
ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
→ Meetings and site visits have been held with the Environmental
Agency in Para State to progress the environmental licensing
program.
→ Positive adherence across all activities to the Company’s formal
environmental, social and governance (ESG) policy framework,
which was based on the recommendations and principles of
two key ESG authorities, Towards Sustainable Mining (TSM) and
Principles of Responsible Investment (PRI).
→ Continued assessment of project greenhouse gas (GHG)
emissions. The Jaguar Project currently represents a carbon
sink, removing about 12,000 tonnes of GHG annually from the
atmosphere, which is equivalent to removing ~2,570 internal
combustion engine vehicles from the roads each year.
→ Construction training programs launched for local residents,
with the intention of training 1,500 people in various trades
to enable them to seek work at the Jaguar Project when
construction commences.
→ Plant nursery established on site to facilitate the revegetation
of some previously cleared farmland. This will allow new forest
corridors to be established around the site to assist with the
movement, protection and biodiversity of flora and fauna.
→ Progressive upgrades to the road between the town of
Tucumã and the Jaguar site, making travel for local residents
significantly safer and less time consuming, particularly during
the annual wet season.
CORPORATE
→ Cash at 31 December 2022 of $34 million.
→ Former Vale, WMC and BHP executive, Dr Natalia Streltsova,
appointed as a Non-Executive Director.
→ Orimco appointed to provide independent financial advisory
services in relation to the debt financing of the Jaguar
Project development.
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“
I am pleased to
say that all of our
work programs
throughout the year
have continued
to reinforce the
Jaguar Project’s
credentials as one of
the most significant
and robust new
nickel sulphide
development
projects anywhere
in the world.
Chair’s Report
I am pleased to report on what has been another exceptionally
busy and productive year for Centaurus Metals.
Despite, at-times, a challenging macro-economic global and market environment, the
Centaurus team has made outstanding progress towards our ambition of establishing a
major new nickel sulphide mining and processing operation at our flagship Jaguar Nickel
Sulphide Project, located in the world-class Carajás mining district of north-eastern Brazil.
Our focus throughout the year has been on the continued advancement of feasibility studies
to support the Project development, as well as on drilling and exploration programs to
further expand the Mineral Resource base.
I am pleased to say that all of our work programs throughout the year have continued to
reinforce the Jaguar Project’s credentials as one of the most significant and robust new
nickel sulphide development projects anywhere in the world.
Over the past 12 months, we have maintained the focus on our drilling programs which
delivered a landmark update to the Jaguar Mineral Resource base in November 2022.
This saw the global Mineral Resource Estimate increase to 108.0Mt @ 0.87% Ni for 938,500
tonnes of contained nickel, with the higher confidence Measured & Indicated Resource
categories more than doubling to over 730,000 tonnes of contained nickel metal – a very
significant de-risking step for the Project.
This Resource will form the basis of a maiden Ore Reserve estimate for Jaguar, which will be
announced as part of the forthcoming Definitive Feasibility Study (DFS).
Work to complete the DFS was also significantly progressed during the course of 2022, with
the mine design and scheduling well advanced and pit optimisations and strategic schedules
completed.
The open pits (based on the previous December 2021 Mineral Resource) now extend over
a continuous strike length of 3km along the strike extent of the Jaguar Deposits. Recent
drilling has also provided compelling evidence to support a potential future underground
mining operation, delivering exceptionally high nickel grades from some of the deepest holes
ever drilled within the Jaguar Project area. A major drilling program targeting the “Jaguar
Deeps” is set to kick-off in May.
Our pilot testwork program is also well advanced, with results to underpin the design of a
final process flowsheet for the refinery circuit. Results to date have shown very high levels
of metal extraction from the refining of flotation concentrates, with nickel extraction in the
leach circuit of over 98%.
This metallurgical testwork is a pivotal component of the DFS, providing us with vital data
to ensure we maximise the value of the Jaguar Project and deliver a premium, high-value
product to market.
Unfortunately, bottlenecks at the pilot plant laboratory saw a delay to the start of this
testwork program, which has had a flow-on impact on the overall DFS schedule. As a result,
we now expect to complete the Jaguar DFS in late Q4 2023, with a Final Investment Decision
(FID) targeted for Q3 2024.
While these delays are frustrating, they are an increasing feature of the current global
resources industry, which is operating at capacity in the face of lingering labour and supply
chain shortages.
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Fortunately, the delay in the DFS does not detract in any way from the exceptional
fundamentals of the Jaguar Project and we are confident that the decision to focus on the
quality of the work is the right one for shareholders. We are diligently checking off the
remaining elements of the DFS and we are confident the final Study will be delivered by
year-end.
We also plan to maintain a strong focus on exploration in 2023, in parallel with the
completion of the DFS. Development drilling at Jaguar has recently been completed,
meaning our drill rigs are now focused exclusively on Resource growth. We are confident
that we can upgrade the Jaguar MRE to more than one million tonnes of contained nickel
metal firmly cementing the Project’s status as a truly world-scale nickel sulphide deposit.
In light of its size and scale, the Jaguar Project has been selected as a Strategic Minerals
Project by the Brazilian Federal Government, recognising its strategic importance for
Brazil’s growth and providing Centaurus with access to tailor-made assistance to navigate
the steps required implement and develop the Jaguar Project in an environmentally
sustainable manner.
We remain extremely confident in our ability to deliver the Project with class-leading
ESG credentials, including very low levels of greenhouse gas emissions. This stems from
the relatively high-grade nature of the ore, the very high proportion of Brazilian power
generated from renewable sources (currently exceeding 80% of the nation’s total power
supply) and our plan to produce a value-added nickel sulphate product on site.
This will make the nickel sulphate we produce highly attractive to EV auto-makers who are
increasingly focused on where their Class-1 nickel comes from and how it contributes to
their overall carbon footprint.
Centaurus maintains a strong focus on our Environmental, Social and Governance (ESG)
performance and you can find full details of our initiatives in our inaugural Sustainability
Report to be released around the time of the Annual Report.
During the year, we have further strengthened our corporate governance with the
appointment of Dr Natalia Streltsova to the board as an independent non-executive Director.
Natalia is a highly credentialled chemical engineer with a wealth of experience in the
international resources industry, including extensive experience working with nickel
in Brazil. She has made an invaluable contribution to the Centaurus board since her
appointment in August, particularly as we have progressed our ongoing metallurgical
testwork and pilot plant programs.
With our work programs progressing across multiple fronts, Jaguar remains one of the few
large-scale nickel sulphide projects currently being prepared for development anywhere in
the world. Excitingly, this development is set to coincide with an exceptionally strong supply/
demand forecast for Class 1 nickel as the world transitions to a low carbon economy.
As always, I would like to sincerely acknowledge the outstanding efforts of the Centaurus
team, ably led by our Managing Director Darren Gordon, for their hard work and dedication
over the past 12 months. I would also like to thank you – our shareholders – for your
ongoing support.
Didier Murcia
CHAIR
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Focus for the Year Ahead
To continue to advance the
Jaguar Nickel Sulphide Project
towards development
Figure 2: Revegetation activity at Jaguar
→ Undertake all activities
safely in an environmentally
and socially sustainable
manner.
→ Complete a Definitive
Feasibility Study and
inaugural Ore Reserve
Estimate.
→ Maintain aggressive
drilling program
at the Jaguar Nickel Sulphide Project to
continue to build the global Resource as
well as maximise the existing Resource
into Measured and Indicated categories
and make new discoveries.
→ Complete offtake agreement
in respect to the supply
of nickel sulphate
from the Jaguar Project.
→ Approval of Environmental
Impact Assessment
(EIA/RIMA) and
Mining Lease
Application.
→ Deliver value to Shareholders
in respect to the Jambreiro
Iron Ore Project.
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Nickel Market & Price
Nickel has outstanding physical and chemical properties, which
make it essential in many thousands of products. Today, its biggest
use is in producing metal alloys, with approximately 70% of global
nickel production currently used to manufacture stainless steel.
However, it is nickel’s vital contribution to the production of
lithium-ion (Li-ion) batteries that is expected to deliver exceptional
demand growth for the metal over the coming years. Li-ion batteries
– used in Electric Vehicles – are a key element of the global
transition to ‘green energy’.
Concern over climate change, the drive towards energy
efficiency and the adoption of carbon dioxide emissions targets
by governments are all helping to increase interest in renewable
energy technologies involving batteries and energy storage. While
nickel is not always in the name, its presence in many battery
technologies is helping to reduce greenhouse gas emissions -
enabling clean energy solutions to be a central part of our effort to
tackle global warming.
According to a recent report by the International Energy Agency
(IEA), global sales of Electric Vehicles (EVs) increased by around 60%
in 2022, surpassing 10 million units for the first time. As a result, one
in every seven passenger cars bought globally in 2022 was an EV –
compared to just one in 70 in 2017.
EV sales increased in every region of the world as production
increased, oil prices rose, and targeted policies were introduced
aimed at supporting their take-up in the market. The European
Union has announced a ban on the sale of new Internal Combustion
Engine (ICE) vehicles from 2035 unless they can operate only on
carbon-neutral fuels.
Most major car manufacturers have now announced plans to
aggressively transition away from the production of internal
combustion engine vehicles to electric, with key targets including:
→ Audi: Targeting 30% electrified range by 2025, with ICEs
planned to be phased out in 2033.
→ BMW: Targeting 50% electrification across the BMW and Mini
model ranges by 2030.
→ Ford: US$50B investment to target the delivery of an all-EV
line-up in Europe by 2030 and 40% of total sales in the US
by 2030.
→ Hyundai: Aim to sell EVs only by 2040.
→ Mazda: Targeting 25% of its model range to be EV by 2030.
→ Mercedes-Benz: Moving to a fully electric line-up by 2030.
→ Mitsubishi: Goal for hybrid and electric cars to account for
50% of sales by 2030 and 100% of global sales by 2035, mostly
comprised of full battery-powered vehicles.
→ Nissan: 100% of all new vehicle offerings electrified in the key
markets of Japan, China, the US and Europe by the early 2030s.
→ Porsche: Aims to be carbon neutral over its entire value chain
by 2030, with 80% of its production output to be more than 80%
pure electric.
→ Toyota: Incoming President Koji Sato has signaled he will
make pivoting to electrics a priority, with plans to produce
about 200,000 EVs in the US annually from 2026 onward.
Toyota-owned Lexus will become an EV-only brand by 2035.
→ Volkswagen: The last purely internal combustion-powered
platform will be developed in 2026, after which VW will be all in
on EV development.
→ Volvo: Half of all sales will come from EVs by 2025 before the
entire model line-up goes all-electric by 2030.
British market research firm LMC Automotive forecasts global EV
sales of 36.71 million vehicles in 2030, roughly quintupling from 2022
and representing 35% of the new-car market.
Until recently, nickel sulphate represented a relatively niche product,
with production of the material amounting to less than 50ktpa of
contained nickel up until 2010, or approximately 3% of the total
nickel market. Since then, demand for class 1 nickel has driven a
fundamental change in the market for nickel sulphate given its key
role in the chemistry of cathode active materials for use in batteries.
Lithium-ion batteries utilising nickel-rich cathodes require high
purity nickel, typically in the form of nickel sulphate. One of the
primary issues facing the nickel industry is the need to develop new
high-grade sulphide nickel deposits, which are the most economic
and cleanest way to deliver class 1 nickel.
Centaurus’s goal is to have the Jaguar Nickel Sulphide Project in
production by 2027, which is expected to coincide with the surging
demand for nickel from EV production across the globe.
Figure 3: Total Nickel Demand by Sector and Scenario, 2020-2040. Source International Energy Agency
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Environmental, Social & Governance
Figure 4: Breast Cancer
Awareness Day with Centaurus
Niquel team in Tucumã
The Company adopted its formal environmental,
social and governance (ESG) policy framework
late in 2021. The framework is based on the
recommendations and principles of two key
ESG authorities:
→ Towards Sustainable Mining (TSM) Principles; and
→ Principles of Responsible Investment (PRI).
TSM is the Mining Association of Canada’s commitment to
responsible mining. It is a set of tools and indicators to drive
performance and ensure that key mining risks at any operation
are managed responsibly. The PRI defines responsible investment
as a strategy and practice to incorporate environmental, social
and governance factors in investment decisions and active
ownership. The PRI is a global organisation that encourages and
supports the uptake of responsible investment practices in the
investment industry.
IBRAM (the Brazilian Mining Institute) is a national mining industry
group representing most of the major mining companies operating
in Brazil. IBRAM adopted TSM as the reference for ESG matters
in 2019.
Centaurus’ ESG program combines the TSM and PRI principles with
actions to be implemented during exploration and operations. The
following initiatives have already been undertaken by the Company
to date at the Jaguar Project region:
→ All of Centaurus employees working on the Jaguar Project
live in the local town with their families, strengthening the
relationship between the Company and the local community;
→ more than 90% of the current project workforce, including
employees and outsourced labour, are from the south-eastern
region of the State of Pará, where the Jaguar Project is located;
→ more than 80% of the Company’s investment expenditure
relating to exploration and development work at the Jaguar
Project to date has been awarded to the local community
through drilling contracts, engagement of consultants and
services and purchase of equipment and supplies; and
→ during the collection of social data, more than 95% of the local
community interviewed was in favour of the project.
GHG EMISSIONS
Since January 2022, the Company has been monitoring scope 2
greenhouse gas (GHG) emissions and sinks associated with the
Jaguar Project. The main carbon sink is the standing forest. The
main source of carbon from the Project at present is the combustion
of diesel to run drill rigs.
The Jaguar Project currently represents a carbon sink, removing
about 12,000 tonnes of GHG annually from the atmosphere, which
is equivalent to removing circa 2,570 internal combustion engine
vehicles (4.6 tonne GHG per vehicle per year) from the roads
each year.
The Jaguar Project is expected to have GHG emissions less than
97% of global nickel production once in operation. Work done during
the DFS on the pressure oxidation circuit indicates that, as a result
of the nickel sulphides at Jaguar being able to be oxidised at lower
temperatures and pressure than that assumed in the Scoping Study,
the amount of oxygen and limestone for residue neutralisation can
be reduced, with the benefit being lowering operating costs and
lowering GHG emissions.
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PLANT NURSERY & REVEGETATION PROGRAM
CONSTRUCTION TRAINING PROGRAMS
The Company has established a plant nursery on site to facilitate the
revegetation of some previously cleared farmland. The revegetation
program commenced in November 2022 (at the start of the wet
season) and will allow new forest corridors to be established around
the site to assist with the movement, protection and biodiversity of
flora and fauna.
Figure 5: Plant Nursery at Jaguar Project Site
WATER WELLS
The Company has drilled five water bores to test the presence and
flow of groundwater and to assess whether this water can be used
for drinking water purposes during exploration and construction.
Bore hole pumping tests on the bores have indicated that low flow
rates are to be expected, which is very positive for the overall
project development. Hydrogeological modelling of pump test
results commenced in December to quantify the flows and aquifer
characteristics. Groundwater quality is good and can be discharged
to surface water bodies without prior treatment. Groundwater is not
required for process water.
The Company intends to train up to 1,500 people in various
trades that will allow them to be able to seek employment once
construction of the Jaguar Project commences. The training
programs are intended to be conducted in conjunction with local
industry training college SENAI, with general skills and OH&S
training programs to commence in H2 2023 followed by specific
trade training in H1 2024.
Interest by local residents was confirmed by the number of
applications received for the various courses, with over 1,900
registrations to date. The courses are expected to be 3 months long
on average and residents of the local community will be prioritised
in the selection process.
COMMUNITY CONSULTATION
In December 2022, detailed information on the Jaguar Project was
presented to the mayors and councillors of the three municipalities
in the Project’s locality. The presentations were designed to prepare
the local authorities for the official public hearings which will be
held as part of the environmental approvals process. The same
presentations were also made to the broader community in all three
municipalities in January 2023.
COMMUNITY SUPPORT – BRIDGE
CONSTRUCTION
In September, an old wooden bridge that connects the village of
Ladeira Vermelha to the town of Tucumã (closest urban centre)
collapsed. The São Félix do Xingu administration requested for the
Company’s support to build a new bridge. The Company supported
the work with a donation and the bridge was rebuilt by the local
administration, as shown in Figure 6 below.
Figure 6: Bridge Restoration Ladeira Vermelha Township
1 Refer to ASX Release dated 10 November 2022
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Strategy & Key Assets in Brazil
The Company’s key focus throughout the 2022
calendar year was on the exploration and
development of the advanced Jaguar Nickel
Sulphide Project, located in the world-class Carajás
Mineral Province in Brazil, which was acquired from
global mining giant, Vale S.A. (“Vale”) in April 2020.
Through the development of the Jaguar Project, Centaurus’ goal
is to become a new-generation nickel sulphide mining company in
Brazil, capable of delivering more than 20,000 tonne per annum of
Class-1 nickel to global markets over the long term, and to do so in
a sustainable and responsible manner that ensures the Company
meets the highest possible ESG standards.
The Company plans to develop a long life nickel sulphate business
which will be implemented via a process flowsheet that starts with
a conventional nickel flotation plant and is followed by a refining
circuit which at its core is a pressure oxidation circuit.
Drilling and exploration programs continued throughout the
reporting period targeting Resource in-fill, Resource extensions
and new discoveries. The 2022 exploration program underpinned
the delivery of an updated MRE for the Jaguar Project in November
2022 totalling 108.0Mt @ 0.87% Ni for 938,500 tonnes of contained
nickel1. This confirms Jaguar’s status as one of the largest nickel
sulphide resources held by an ASX-listed company and the largest
outside of the major mining companies.
The Jaguar Definitive Feasibility Study (DFS) was significantly
advanced over the course of the year with the timeline for
completion of the DFS being driven by the completion of pilot plant
testwork on the refinery circuit that is required to produce a high
quality nickel sulphate product. The pilot plant test program is
scheduled for completion in late April 2023.
The completion of the Definitive Feasibility Study (DFS) is targeted
for late Q4 2023, with a Final Investment Decision (FID) scheduled
for Q3 2024.
In addition to Jaguar, the Company also holds the advanced
Jambreiro Iron Ore Project. Environmental licensing for the
Jambreiro Project is currently being refreshed and the Company
continues to pursue options to deliver value from this asset.
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1 Refer to ASX Release dated 10 November 2022
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Jaguar Nickel Sulphide Project
The Jaguar Nickel Sulphide Project hosts multiple
nickel sulphide deposits and exploration targets
within a 30km2 land package in the western portion
of the world-class Carajás Mineral Province.
The Jaguar Project is ideally located close to existing infrastructure,
just 35km north of the regional centre of Tucumã (population
+35,000) and only 15km north-west of Vale’s large scale Onça Puma
Ferronickel operation, which is powered by 230kV power from the
national grid. The Company plans to connect to this 230kV power
grid as part of the Jaguar Project development.
JAGUAR SELECTED AS A STRATEGIC
MINERALS PROJECT
The Jaguar Nickel Sulphide Project has been selected as a
Strategic Minerals Project by the Brazilian Federal Government.
The Strategic Minerals Policy is part of the Investment
Partnership Program – PPI (Programa de Parcerias de
Investimento), a relatively new Brazil
governmental initiative designed to support
companies while developing their projects
across the country. The PPI program supports
projects that are identified as strategic mineral
projects for Brazil.
This government initiative is an important step in encouraging
mining projects that are significant for Brazil’s growth and to provide
project proponents with tailor-made assistance to navigate the steps
required towards implementation and development of their ventures
in an environmentally sustainable manner.
UPDATED JORC MINERAL RESOURCE ESTIMATE
Centaurus announced a further substantial increase in the MRE
for the Jaguar Project in November 2022, confirming Jaguar’s
position as a Tier-1 global nickel sulphide development project with
class-leading greenhouse gas (GHG) emission credentials.
The updated MRE, comprising 108.0Mt @ 0.87% Ni for 938,500
tonnes of contained nickel (Table 1), confirms Jaguar as one of the
largest nickel sulphide resources held by an ASX-listed company
and the largest outside of the major mining companies.
Importantly, the success of the in-fill resource development
rogram completed over the last 12 months has resulted in a 100%
increase in the Measured & Indicated component of the Resource
According to the Ministry of Mines and Energy,
the Policy confirms strategic priority to be
given to projects selected by the Inter-ministerial
Committee of Analysis of Strategic Minerals
Projects – CTAPME, providing proponents with
specialised governmental support for
the development of their projects.
CTAPME has members from several
governmental agencies, including the Ministry
of Mines and Energy, the Science, Technology
and Innovation Ministry and the Special
Secretariat of Strategic Affairs of the Presidency.
The goal is to provide both government and
proponents a more efficient and effective
pathway to the development of the country’s
strategic projects.
Figure 7: The Jaguar JORC MRE Growth
Classification*
Measured
Indicated
Measured & Indicated
Inferred
Total
Mt
14.0
71.7
85.8
22.2
108.0
Grade
Ni %
1.06
0.81
0.85
0.94
0.87
Cu %
0.07
0.06
0.06
0.09
0.07
Co ppm
391
238
263
291
269
Zn%
0.48
0.31
0.34
0.24
0.32
Contained Metal
Co
Cu
Ni
149,400
580,900
730,300
208,200
938,500
9,800
42,300
52,000
19,700
71,700
5,500
17,000
Zn
67,300
223,300
22,500
290,700
6,500
53,700
29,000
344,400
* Within pit limits cut-off grade 0.3% Ni; below pit limits cut-off grade 0.7% Ni; Totals are rounded to reflect acceptable precision, subtotals may not reflect global totals. All oxide material is considered as waste
and therefore not reported as Resources.
Table 1: The Jaguar JORC MRE November 2022
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to 85.8Mt @ 0.85% Ni for 730,300 tonnes of contained nickel,
representing more than 75% of the Global MRE.
The Measured and Indicated component of the MRE is set to
underpin the Company’s maiden Ore Reserve Estimate and
Definitive Feasibility Study (DFS), due for completion in mid-2023.
The global MRE at Jaguar has increased by 28% since the
previous Resource Estimate that was announced in December
2021 and 80% since the Company’s maiden Resource was
announced in June 2020 (Figure 7).
Continued successful step-out and extensional drilling has
contributed to delivering an exceptional 421,000 tonnes of
additional contained nickel metal since the Company’s maiden
Resource in June 2020 (Figure 7), reflecting an impressive
track record of defining new resources at the rate of ~165,000
tonnes of contained nickel per annum through a sustained and
focused drilling program at Jaguar.
Underpinned by a 0.87% Ni Resource head-grade, Jaguar is
expected to be one of the highest grade open-pit nickel sulphide
operations globally.
The successful 2022 in-fill drilling program at the Jaguar and
Onça Deposits means that more than 75% of the Global MRE is
now classified in the higher-confidence Measured and Indicated
categories. Measured and Indicated Resources will be available
for conversion to Ore Reserves as part of the DFS due for
completion in 2023.
Figure 8: Jaguar Deposit – Nickel grade-tonnage curve. (Nickel cut-off grade is variable for in-pit resources but not less than 0.7% Ni for below-pit Resources).
Ni% Cut-off Grade
Tonnes
Grade
Metal Tonnes
In-pit
Below pit
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
0.7
0.7
0.7
0.7
0.7
0.7
0.8
0.9
1.0
1.1
1.2
1.3
Mt
111.2
108.0
98.5
85.1
72.0
61.1
47.2
36.6
28.6
22.8
18.4
15.2
Ni %
Cu %
Co ppm
Zn %
0.85
0.87
0.92
0.99
1.07
1.15
1.27
1.39
1.51
1.63
1.74
1.85
0.06
0.07
0.07
0.08
0.08
0.09
0.10
0.11
0.11
0.12
0.13
0.13
263
269
282
304
327
348
377
406
435
460
486
507
0.31
0.32
0.34
0.36
0.37
0.38
0.40
0.43
0.45
0.46
0.48
0.49
Ni
946,800
938,500
904,600
843,800
772,300
701,400
597,500
507,900
431,800
371,400
321,100
280,900
Cu
72,100
71,700
69,400
64,800
62,300
54,200
45,900
38,800
32,500
27,100
23,100
19,800
Co
Zn
29,300
29,000
27,800
25,800
24,800
21,300
17,800
14,900
12,400
10,500
9,000
7,700
347,900
344,400
330,400
302,400
276,400
231,600
191,100
156,400
129,100
105,700
88,800
74,200
• Totals are rounded to reflect acceptable precision, subtotals may not reflect global totals.
Table 2: The Jaguar JORC MRE at various Ni% Cut-Off Grades – November 2022
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In-fill drilling targeting the first three years of
operation at Jaguar Central and Onça Preta has
returned a Measured Resource estimate of 14.0Mt
@ 1.06% Ni for 149,400 tonnes of contained nickel
metal. The high-grade and higher confidence
resources will be an important part of the early
mine plan during the project pay-back period.
The Jaguar mineralisation remains open
down-dip at all deposits and locally along
strike, with outstanding potential to continue
strong resource growth driven by step-out and
extensional drilling targeting DHEM conductor
plates and greenfields drilling of the extensive
regional exploration pipeline.
Importantly, within the Jaguar Global MRE there
is a significant high-grade component of 28.6Mt
@ 1.51% Ni for 431,800 tonnes of contained nickel
metal, which has been estimated using a 1.0%
nickel cut-off grade across the total Mineral
Resource (see Table 2). The grade-tonnage curve
for the project is shown in Figure 8. Within the
High-Grade MRE, around 30% of the contained
nickel sits less than 100m from surface. This
demonstrates that near-surface high-grade
resources are available to assist in optimising
the project in the early years of operations to
support rapid capital payback.
The resource category development has also
been very successful in correlating well with the
interpretation of the previous Inferred Resource.
In addition to providing increasing control on the
s also helped develop an important structural
model for the Project, which will support resource
extension drilling and potential new discoveries.
The Jaguar MRE covers the six Jaguar deposits,
two Onça deposits and the Tigre Deposit. The
Project also hosts an outstanding pipeline of
greenfields targets, and the Company expects to
make more discoveries
to continue to contribute to the organic growth of
the Jaguar Resource.
The Jaguar South, Jaguar Central and Onça
Preta Deposits contain the majority of the MRE
and are expected to underpin the bulk of the
Jaguar DFS Reserve.
Figure 9: 3D view of the Jaguar and Onça Deposits showing Resource Categories.
Figure 10: 3D view of the Jaguar and Onça Deposits showing nickel grade of ore blocks.
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RESOURCE IN-FILL, STEP-OUT AND
EXTENSIONAL DRILLING PROGRAM
Resource in-fill, extensional and step-out drilling continued
at the Jaguar Project throughout the reporting period, with
drilling completed up to July 2022 feeding into the MRE update
outlined above, and subsequent drilling set to feed into the next
MRE Update.
As of the end of February 2023, there were 7 rigs on site
(6 diamond and 1 RC) drilling double shift with drilling focused
exclusively on step-out, extensional and greenfields drilling targeting
resource growth. A new program of drilling targeting the exciting
Jaguar Deeps is set to commence in May 2023.
TARGETS FOR ONGOING MINERAL
RESOURCE GROWTH
DEFINITIVE FEASIBILITY STUDY (DFS),
PROJECT DEVELOPMENT AND
INFRASTRUCTURE INITIATIVES
Significant activity was undertaken during the year in respect
to the DFS, project development initiatives and future
infrastructure access.
The pilot plant test work for the refinery circuit commenced in
January 2023 (at ALS Metallurgy in Balcatta, Western Australia)
when the pilot facilities were made available to Centaurus following
extensions of piloting work programs of other companies in the
piloting queue.
The scope of the Refinery piloting is split into four phases of
work as follows:
→ Phase 1: Concentrate feed preparation, pressure leaching, and
copper solvent extraction.
The November 2022 JORC MRE update for the Jaguar Nickel Project
is from the six Jaguar deposits, two Onça deposits and the Tigre
deposit (refer to detailed MRE Statement on Page 24). Importantly,
significant potential remains to expand the Resources from within
the current deposits primarily through down-dip drilling, but also
though extensional drilling along strike at some of the deposits.
→ Phase 2: Zinc and calcium extraction via solvent extraction.
→ Phase 3: Cobalt/magnesium extraction and nickel purification
via solvent extraction circuit.
→ Phase 4: Nickel sulphate crystallisation plus zinc and cobalt
hydroxide production.
The nature of the hydrothermal mineralisation at the Jaguar
Project points to a deep plumbing system which remains to be
tested beyond current drill depths. The average drill-hole depth to
date is only 230m, with less than 5% of diamond holes (30 out of a
total of 601) completed to end-of-hole depths of more than 500m,
with all deep holes intersecting stringer to semi-massive nickel
mineralisation.
DHEM surveys continue to indicate that the high-grade
mineralisation is continuous and open at depth across all deposits.
There is also significant potential to extend some of the key deposits
along strike in some directions. Drilling for 2023 will focus on both
project development (including in-fill, geotechnical and metallurgical
drilling) as well as resource growth on multiple target areas.
Subsequent to the end of the reporting period, the Company
announced strong results from step-out and deeper drilling at
the Jaguar Project, confirming the potential for further significant
Resource growth towards one million tonnes of contained nickel
metal and beyond (see ASX Announcement dated 6 February 2023).
With the delayed start of the pilot, the delivery of the DFS will now
occur in late Q4 2023 with FID targeted for Q3 2024, after front-end
engineering design (FEED) work is sufficiently advanced to place
long-lead orders and the second stage of the environmental
approval process (Installation Licence) has been completed.
The environmental approval process is progressing without issue.
Several meetings, including an initial site visit, have been held with
the Environmental Agency in Para State (SEMAS) to keep them
informed on project development activities.
The Company is targeting first production in 2027, subject to
confirmation of delivery timelines for long-lead items once the
DFS is finalised.
Figure 10: 3D view of the Jaguar and Onça Deposits showing nickel grade of ore blocks.
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APPOINTMENT OF AUSENCO AS LEAD ENGINEER
Centaurus appointed global engineering group Ausenco as Lead
Engineer for the completion and delivery of the Jaguar Project
Definitive Feasibility Study.
Ausenco will provide the majority of study services through its
Perth office, with technical and engineering support from its Belo
Horizonte office, to ensure that engineering designs conform to
Brazilian standards and to ensure that capital and operating costs
reflect local supply and installation costs. Ausenco’s key global
hydrometallurgical subject matter experts are based in the
Perth office.
MINING
Following the completion of open pit optimisations, designs and
strategic schedules during the reporting period (based on the
December 2021 MRE), the open pits now extend over a continuous
strike length of 3km along the strike extent of the Jaguar Deposits.
The separate pits identified in the Scoping Study have coalesced into
a single pit (Figure 11) up to 1km wide and with depths that extend
to over 300m. The Onça pits remain as two separate pits with over
1.5km strike length, with Onça Preta now up to 245m deep. The
overall project strip ratio remains low at approximately 7.5 to 1.
New pit optimisation work commenced in March 2023 based on new
costs and the MRE delivered in November 2022. This optimisation
work will cornerstone the mine design and schedule for the DFS.
Pricing proposals for mining activities at Jaguar have been received
from five earthmoving contractors and two explosives suppliers to
support the open pit planning work for the DFS. These proposals are
under commercial and technical evaluation to select pricing for use
in open pit planning for the DFS, utilising the November 2022 MRE
orebody model.
Deposit
Jaguar South
Jaguar Central
Jaguar North
Jaguar Central North
Jaguar North-East
Jaguar West
Onça Preta
Onça Rosa
Tigre
Total
Mt
34.6
12.5
3.2
14.2
16.8
8.7
14.2
1.8
2.0
108.0
%Ni
0.92
0.81
1.15
0.62
0.75
0.72
1.23
0.98
0.77
0.87
Table 3: Jaguar Nickel Project Mineralogy Origins
Figure 11: Project Layout at Jaguar
MINERALOGY
Centaurus has undertaken comprehensive testing and analysis of
the mineralogy of the Jaguar Nickel Project as part of which 3km of
core, drilled by the Company, was selected for mineralogical testing.
The core was selected from geologically important areas across
the entirety of the Project’s Resource base, including Jaguar South,
Jaguar Central, Jaguar West, Jaguar Central North, Jaguar North,
Jaguar North-East, Onça Preta and Onça Rosa. A summary of the
location of the samples taken for the mineralogy work is set out in
Table 3 below.
The mineralogy work has provided significant understanding of the
ore zones at Jaguar, including:
→ the distribution of ore hardness across ore zones;
→ the relative proportions of nickel sulphides (millerite,
pentlandite or violarite – see Figure 13);
Ni t
% Ni t
Samples
Metres Analysed
316,500
100,400
36,600
88,100
126,200
63,100
173,900
18,600
15,100
33.7
10.7
3.9
9.4
13.4
6.7
18.5
2.0
1.6
91
54
15
13
19
23
23
9
-
1,091
837
180
149
244
205
190
69
-
938,500
100.0
247
2,965
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Global Project Average Sulphides
Figure 12: Jaguar Ore Sample – Fresh sulphides within 3 meters of surface
Figure 13: Average Sulphide Mineralogy of the Jaguar Nickel
Project’s Ore Zones
→ the proportions of recoverable nickel sulphides from
the ore zones;
→ the average mineral grain size and associations
of the target minerals;
→ important geometallurgical relationships
(flotation metal and mass recovery expectations); and
→ for Jaguar ore zones, nickel sulphide recovery is
independent of nickel head grade.
From this work the Company has developed a detailed
understanding of the ore types at the Jaguar Project, with how to
best process them and the resultant concentrate quality produced.
Of particular importance for the concentrator circuit is the
determination of sulphide nickel (which is recoverable by flotation).
Figure 14 illustrates the sulphide nickel to total nickel relationship
for the Jaguar and Onça deposits. There is a consistent background
of non-sulphide nickel across the different deposits and, as such,
the higher the total nickel grade the lower proportion of
non-sulphide nickel losses and the higher nickel flotation
recovery that will be achieved.
FLOTATION TESTWORK
Extensive flotation testwork has been completed on the Jaguar
nickel sulphide ore, with over 800kg of high-quality concentrate
produced for feed to the Jaguar pilot plant. Variability composites
were also prepared and tested. The flotation work has provided an
extensive geometallurgical understanding for optimisation of the
mining schedule.
The testwork and geometallurgical analysis of the data has defined
the following key parameters;
→ concentrate mass recovery;
→ nickel sulphide recovery;
→ copper recovery;
→ sulphur recovery;
→ zinc recovery;
→ cobalt recovery; and
→ ore hardness parameters.
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Figure 14: Average Sulphide Mineralogy of the Jaguar Nickel Project’s Ore Zones
CENTAURUS METALS ANNUAL REPORT 2022
From the flotation testwork, Centaurus estimates that it will be able
to recover approximately 94% of the sulphide nickel processed to
a concentrate (which is approximately 78% of the total nickel at the
average head grade in the MRE).
Phase 1 of the pilot plant performed well and generated extensive
chemistry and engineering data for the completion of the process
design of the refinery, as planned. Of note were the following
observations and results:
The 800kg of bulk concentrate used as feed for piloting of the
refinery had the following product specification:
→ the established flowsheet was able to produce high
extractions continuously;
Ni (%)
11.2
Cl (%)
<0.01
Cu (%)
0.72
As (%)
<0.01
Ca (%)
0.31
F (%)
<0.01
MgO (%)
Fe/Mgo (%)
Pb (%)
2.56
11.9
0.05
Zn (%)
3.07
Fe (%)
30.3
S (%)
36.7
Al (%)
0.44
K (%)
0.13
P (%)
0.42
Table 4: Pilot Bulk Concentrate Sample Analysis
PILOT PLANT
Centaurus’ piloting program for the Jaguar Project has been
developed to provide detailed chemistry and process engineering
data for the DFS and FEED requirements, as well as to ensure a
high-quality nickel product is achieved for marketing and offtake
discussions.
The pilot program will also confirm the by-products that can be
produced from the Jaguar process flowsheet so that all viable
revenue streams from Jaguar can be considered in the project
economics of the DFS.
The pilot plant testwork commenced in January 2023 (at ALS
Metallurgy) when the pilot facilities were made available to the
Company following extensions of piloting work programs of other
companies in the piloting queue.
The scope of the refinery piloting is split into four phases of work as
follows:
→ phase 1: Concentrate feed preparation, pressure leaching,
and copper solvent extraction.
→ phase 2: Zinc and calcium extraction via solvent extraction.
→ phase 3: Cobalt/magnesium extraction and nickel purification
via solvent extraction circuits.
→ phase 4: Nickel sulphate crystallisation plus zinc and cobalt
hydroxide production.
Phases 1 – 3 have been completed with Phase 4 underway
(due for completion by the end of April 2023).
Phase 1
Phase 1 treated the flotation concentrate, the specification of which
is outlined above in Table 4. The flowsheet included oxidative
pressure leaching (POX) in an autoclave with cooling by flash
recycling, primary neutralisation, copper solvent extraction and
secondary neutralisation.
→ the extractions of nickel, copper, zinc, and cobalt sulphides
were better than anticipated at 98.6%, 96.6%, 95.6% and
60.8% respectively;
→ only 45% of the sulphides need to be oxidised to achieve
the metal extractions which will translate into reduced
oxygen consumption and acid generation and savings in
neutralisation costs;
→ a 3.5-hour retention time was achieved which was better than
the 4-hour leach previously indicated from batch testwork; and
→ the thickening and filtration design data provided better than
expected settling/filtration rates and solute recovery.
Further bench scale testwork has been completed by ALS on the
pilot feed concentrate to positively verify the scale up relationship
between the bench scale tests and the results achieved in
continuous piloting. This provides the Company with confidence in
using small-scale batch testing for concentrate variability.
Phase 2 & 3
Phase 2 & 3 of the pilot work defines the solvent extraction
requirements of the flowsheet.
Phase 2 was designed to extract zinc (for a by-product revenue
stream) and soluble calcium from the Phase 1 leach solution with
minimal nickel loss, whilst Phase 3 was designed to initially extract
cobalt (again for a by-product revenue stream) and magnesium
followed by the purification of the nickel solution to produce
nickel sulphate.
Figure 15: Jaguar Pilot Test Facility
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From the Phase 2 solvent extraction work, three product/waste
streams are produced:
INFRASTRUCTURE
→ a raffinate primarily containing nickel, cobalt,
magnesium and manganese;
→ a zinc strip solution; and
→ a calcium strip solution for waste deposition.
The piloting of zinc and calcium solvent extraction has been
completed using D2EPHA extractant and a solvent extraction circuit
configuration that was successful in extracting over 99% of the zinc
and calcium whilst losing less than 0.8% of the nickel (Table 5).
Solution
Ca
(mg/L)
Co
(mg/L)
Mg
(mg/L)
Mn
(mg/L)
Ni
(mg/L)
Zn
(mg/L)
Product to
Phase 3 Future
Testing
Zinc Product
Solution
7
772
2,940
54
37,670
3
382
<1
0.1
0.6
0.3
43,290
Table 5: Phase 2 Product Average Solution Concentrations
While the product testing has not been fully completed yet, the
test work shows that a high purity zinc hydroxide product can be
generated providing an additional revenue stream not considered in
prior economic assessments of the project. The results from Phase
2 confirmed the initial laboratory scale batch test work results.
Phase 3 was recently completed in March 2023.
Phase 3 was successful in extracting cobalt and magnesium from
the Phase 2 raffinate to allow production of a cobalt hydroxide
product as well as the purification of the nickel solution to produce
nickel sulphate.
Phase 4 is underway and due for completion by the end of April
2023.
The successful completion of the pilot testwork will deliver all
necessary data for the completion of the important refinery process
design for the DFS as well as producing battery grade nickel product
for marketing and offtake discussions.
PROCESS PLANT ENGINEERING
The concentrator section of the processing facility, consisting of
crushing, grinding and flotation and thickening circuits, has been
finalised and capital equipment packages progressively issued for
pricing. Pricing for the major equipment has been received from
suppliers, with the commercial and technical evaluation process
well advanced.
Layout of the refinery and non-process plant infrastructure
commenced towards the end of the reporting period and is
expected to be finalised in H1 2023.
Road Upgrades
Early works to facilitate the construction of the project will include
the upgrade of up to 60km of gravel roads, drainage culverts and
two bridges between the townships of Ourilândia do Norte and
Tucumã and site.
Geotechnical drilling for the final design of the roads and bridges
from Tucumá and Ourilândia do Norte to site has been completed
and laboratory analysis of samples for foundation design and
construction materials was nearing completion at the end of
the reporting period.
Power Supply
The generation of power for the national power grid in
north-eastern Brazil consists of hydro, solar, wind and thermal
power generation facilities supplying the national network
through a fully interconnected distribution system.
An assessment of power supply options for site during the
reporting period determined that the preferred solution to
ensure long term supply with better upgrade potential (should
project demand increase in the future) is to access the 230kV
national distribution system.
Initial design and licencing work commenced to connect to the
230kV national grid, including the assessment of the preferred
route and interconnection options. Initial meetings with the Ministry
of Mines & Energy were held in January 2023 to formally discuss
the Project and its power requirements and to commence electrical
engineering and permitting processes.
Tailings Storage Facility Designs
Two tailings storage facilities will be built on site to contain
processing tailings because of differing geochemical characteristics
and risk classification. The flotation tailings, comprising approximately
90% of the process tailings stream, will be stored in an Integrated
Waste Landform (IWL) style facility. Residue from the pressure
oxidation circuit, which accounts for approximately 10% of the
process waste stream and which will contain elevated levels of
some metals and sulphates, will be stored in a separate POX
residue facility.
Due to limited suitable construction material (mostly suitable clays)
at Jaguar, the IWL will be constructed with a partial HDPE lining
(walls only) to limit potential for seepage. The POX residue will be
dewatered using a filter press to produce a filter cake product with
lower moisture content before being stacked inside a fully HDPE
plastic lined facility to ensure no loss of potential leachates from
this facility. The POX residue facility will comprise four cells,
with cells to be progressively built over the life of the mine as
production dictates.
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Figure 16: Jaguar Project Core Shed
Figure 17: Canaã Camp & Core Layout Facility
New Site Core Shed
The Company completed the construction of a new site core shed,
(Figure 16) which has the capacity to store close to 300,000 metres
of core.
Centaurus commenced the process of setting up of the shelving
system at the new shed and moving the core from the existing shed
in Tucumá to site.
On Site Accommodation
Following the purchase of the possession rights for the third land
parcel in 2021, the Company is now using the farmhouse that came
as part of the acquisition as a base for new on-site accommodation.
Upgrade work of this site was completed in July 2022. This work has
increased the on-site housing capacity at Jaguar (across two sites)
to over 160 people.
Sterilisation Drilling of Major Infrastructure Areas
More than 6,000m of RC sterilisation drilling has been completed
covering all areas at the project where major infrastructure is
proposed to be located. Sterilisation drilling first tested priority
exploration targets over planned infrastructure as well as
pattern drilling. Importantly, no economic mineralisation has been
intersected in the sterilisation drilling and the Company is satisfied
that that the major infrastructure sites have been sterilised.
Key Appointments – Project Execution Team
The Company has made several key personnel appointments
to support the delivery of the DFS and future FEED work. The
appointments bring a wealth of additional experience in the resource
sector and significantly add to the existing process engineering,
metallurgy and hydrometallurgical experience within the group.
Key appointments include Mick Ryan as Project Manager, Sarah
Mitchell as Consultant Metallurgist, Barun Dutta as Engineering
Manager, Glenn Firth as Environmental and Compliance Specialist,
and Richard Kelly as Project Engineer.
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OFF-TAKE DISCUSSIONS
Off-take discussions are continuing in relation to the products to be
produced from Jaguar. Vale has the right to product at arm’s length
market-based pricing under the original acquisition agreement for
the Jaguar Project. Centaurus retains discretion over what nickel
products will be produced at Jaguar.
The introduction of the Inflation Reduction Act by the US
Government has highlighted the strategic importance of energy
metals like nickel and, in particular, those that can be sourced in
geopolitically stable jurisdictions with a low-emission footprint.
Brazil fits these criteria well as it is South America’s largest
pro-mining jurisdiction, the 8th largest global economy and currently
more than 80% of the country’s grid power is delivered from
renewable sources. It is anticipated that the Jaguar Project will
be able to secure 100% renewably sourced power by the time it is
in production.
With its very large metal endowment, the Jaguar Project is
extremely well placed to capitalise on the fast-growing EV and
battery metals market.
PROJECT FINANCE
Centaurus has appointed Orimco Pty Ltd to provide independent
financial advisory services in relation to the debt financing of the
Jaguar Project.
Orimco is a leading advisory firm providing services to resource
companies and wholesale investors focused on the global mining
industry. The Orimco team has extensive experience arranging
and managing debt and hedging transactions for both resource
companies and financiers. Orimco has provided advisory services to
resource companies across a broad range of projects, commodities
(including recent nickel experience), and jurisdictions.
The team is led by highly experienced mining executives Nick Harch,
Brett Gossage and John Fitzgerald.
The appointment of Orimco will ensure that the outcomes and
deliverables of the ongoing DFS meet the requirements of debt
financiers and support a competitive
financing process.
Greenfields Exploration Pipeline
The Jaguar Project sits at the intersection of two
of the most important mineralising structures
in the Carajás Mineral Province, the Canãa
and McCandless Faults. At Jaguar, the close
association of semi-massive and massive sulphides
with magnetite means that, when targeting
new mineralisation, coincident geochemical,
electromagnetic and magnetic anomalies are the
highest priority targets. This is evidenced in the
Ground Magnetics surveys in Figure 18 below.
Multiple prospects and targets which are located along the main
mineralisation structures and characterised by ground magnetic and
airborne and/or ground electromagnetic (EM) anomalies coincident
with significant soil geochemical anomalies remain to be drill tested.
During the year, the Company commenced greenfields exploration
on two recently granted Exploration Licenses. Both projects are
located within 30km of the proposed Jaguar plant site and if a nickel
sulphide discovery was made could contribute to the Jaguar project
as a simple satellite operation. Both tenements are 100%-owned by
the Company.
SANTA INÊS PROJECT
Located 15km2 north-west of the Jaguar Project. The 18 km2
exploration lease is positioned on a strand of the regionally
significant Canaã Fault which is the same structure that is
understood to have been critical in the mineralisation processes
of the Jaguar Deposit. Mapping has identified a mafic intrusion on
the project. Rock-chip and soil geochem assays are expected in the
coming months.
TERRA ROXA PROJECT
The 29km2 exploration lease is located 30km south-west of the
Jaguar Project. The project is located on the McCandless Fault
which traverses the Jaguar Project through the Puma Layered
Mafic-Ultramafic Complex and is understood to be the source of
nickel for the hydrothermal mineralisation seen at Jaguar. Terra
Roxa is located immediately south of Vale’s Mundial nickel-laterite
deposit which is the laterite cap of another mafic-ultramafic
intrusion.
The Company has completed landowner access agreements and
started early-stage exploration including mapping, rock-chip and
soil sampling on the 100%‐owned projects. Geophysical surveys and
first-pass RC-drilling will be planned once exploration targets have
been determined.
Drilling of the greenfields exploration pipeline will be undertaken
systematically over the next 18 months using the RC rig, and
diamond rigs will be dedicated to projects once a discovery is made.
CURIONÓPOLIS PROJECT
The Company’s 100%‐owned Curionópolis Project is a group of four
recently granted exploration leases covering 51km2 located 15km
east of Oz Minerals Antas Norte Cu-Au operation in the Eastern
Carajás. The tenements cover more than 15km of strike of the highly
prospective Itacaiúnas Supergroup (which hosts all IOCG deposits
within the Carajás Mineral Province) coincident with a strong
continuous aeromagnetic anomaly.
The Company has started landowner access agreements and once
all agreements are complete will start early-stage exploration
including mapping, soil sampling and geophysical surveys.
Figure 18: The Jaguar Nickel Project – Soils Geochemistry (Ni) over Ground Magnetics (Analytic Signal)
CENTAURUS METALS LIMITED ANNUAL REPORT
21
CENTAURUS METALS ANNUAL REPORT 2022
CENTAURUS METALS ANNUAL REPORT 2022
Jambreiro Iron Ore Project
The 100%‐owned Jambreiro Project is located in south‐east Brazil, close
to the Company’s head office in the city of Belo Horizonte.
The Company has commenced the process to refresh all environmental licences required
to develop the project. As part of this process, Supram (the Minas Gerais environmental
agency) has advised that new wet and dry season environmental data will need to be collected
to support a new Installation Licence (LI) application given the age of the data used in the
originally approved LI. The new data has been collected over the last 3 months, with the new
application targeted for lodgement in July 2023. Approval is anticipated to be 12 months from
lodgement. The Company has also lodged the documentation to re-apply for all water permits
necessary to operate the project.
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ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
23
CENTAURUS METALS ANNUAL REPORT 2022
Corporate
APPOINTMENT OF NON-EXECUTIVE DIRECTOR
During the year, the Company appointed highly experienced mining
executive and company director, Dr Natalia Streltsova, to its board
as an independent non-executive Director.
Dr Streltsova brings a wealth of international experience at senior
executive levels in the resource industry – including in Brazil and
with a particular focus in nickel – making her an ideal addition to
the Centaurus board as the Company continues to advance the
development of the Jaguar Project.
The appointment is consistent with the Company’ commitment to
continue to strengthen and evolve its senior leadership team to
ensure it has the appropriate level of skills, experience and diversity
at both board and senior management levels to oversee its next
stage of growth as a sustainable international mining company.
During her 29-year career, Dr Streltsova has spent over 12
years in various technical and senior executive roles with major
mining houses including Vale, BHP Billiton and WMC Resources.
A Chemical Engineer with both an MSc and PhD, Dr Streltsova
spent the early part of her career working in chemical research
before taking on several mining industry roles where she had
considerable interaction with operations to provide support and
to identify technical opportunities for efficiency improvements and
cost reductions. She was Program Leader – Hydrometallurgy and
Project Manager for WMC Resources between 2000 and 2005,
working on a range of projects including Mt Keith and Olympic Dam;
Team Leader – Hydrometallurgy and Technology Development
Manager for BHP Billiton between 2005 and 2008;
Manager Development and Technical Solutions for GRD Minproc
(2008) and Director, Technical Development, for Vale SA in Brazil
between 2008 and 2012.
In the past ten years her focus has been on non-executive board
memberships and consulting. She is a non-executive Director
of Ramelius Resources (ASX: RMS), non-executive director of
Neometals (ASX: NMT) and non-executive Chair of Australian
Potash (ASX: APC). She was a non-executive Director of Western
Areas (ASX: WSA) from 2017 until its takeover by IGO Limited
during the year.
$75M INSTITUTIONAL SHARE PLACEMENT
Centaurus completed an institutional share placement in January
2022 which raised $75 million to underpin the growth and
development of the Jaguar Project.
There was very strong demand for the placement from Australian
and international institutional investors as well as existing
substantial shareholders, including affiliates of the Sprott Group,
McCusker Holdings, Dundee Goodman Merchant Partners and
Harmanis Holdings.
CASH POSITION
At 31 December 2022, the Company held cash reserves
of A$34 million.
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23
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CENTAURUS METALS ANNUAL REPORT 2022
Mineral Resources & Ore Reserves
TOTAL MINERAL RESOURCES & ORE RESERVES STATEMENT
The Company’s Mineral Resource for its nickel holding is shown in the following tables.
Grade
Contained Metal
Ni %
0.87
Cu %
0.05
Co ppm Zn %
0.13
198
Cu
Ni
240,300
Deposit
Jaguar South
Jaguar Central
Jaguar North
Classification
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Jaguar Central North
Inferred
Jaguar Northeast
Jaguar West
Jaguar Deposits
Onça Preta
Onça Rosa
Tigre
Jaguar MRE
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Mt
27.6
7.0
34.6
8.9
2.9
0.7
12.5
2.7
0.5
3.2
10.2
4.0
14.2
13.3
3.5
16.8
7.8
0.9
8.7
8.9
64.5
16.5
89.9
5.1
4.5
4.5
14.2
1.9
0.04
1.9
0.8
1.2
2.0
14.0
71.7
22.2
108.0
1.10
0.92
0.88
0.61
0.68
0.81
1.14
1.19
1.15
0.61
0.66
0.62
0.71
0.89
0.75
0.72
0.75
0.72
0.88
0.78
0.91
0.81
1.39
1.19
1.08
1.23
0.98
0.92
0.98
0.86
0.70
0.77
1.06
0.81
0.94
0.87
0.07
0.05
0.05
0.04
0.05
0.05
0.17
0.23
0.18
0.04
0.04
0.04
0.09
0.21
0.11
0.03
0.04
0.03
0.05
0.06
0.09
0.06
0.10
0.09
0.08
0.09
0.08
0.05
0.07
0.09
0.06
0.07
0.07
0.06
0.09
0.07
262
211
252
207
210
239
383
387
383
189
197
191
269
317
279
168
157
167
252
216
254
226
636
517
436
534
281
304
282
303
248
271
391
238
291
269
0.09
0.13
0.56
0.24
0.19
0.47
1.19
1.16
1.19
0.62
0.44
0.57
0.50
0.55
0.51
0.13
0.05
0.12
0.56
0.33
0.31
0.35
0.33
0.15
0.07
0.19
0.03
0.02
0.03
0.04
0.02
0.03
0.48
0.31
0.24
0.32
13,000
4,600
76,300
316,500
17,600
78,600
17,300
4,500
100,400
30,900
5,700
36,600
62,000
26,100
88,100
95,100
31,200
4,900
1,000
300
6,200
4,500
1,100
5,600
3,600
1,700
5,300
11,700
7,200
126,200
18,900
56,200
6,900
63,100
78,600
501,800
150,500
2,300
300
2,600
4,900
36,100
15,200
Co
Zn
5,500
1,800
7,300
2,300
600
100
3,000
1,000
200
1,200
1,900
800
37,200
6,400
43,600
50,400
6,700
1,200
58,400
32,200
5,600
37,800
63,500
17,600
2,700
81,100
3,600
1,100
4,700
1,300
100
1,500
2,300
66,100
19,300
85,400
9,800
400
10,200
50,400
13,900
215,500
4,200
50,500
730,900
56,200
20,400
316,400
70,800
53,800
49,200
4,900
4,100
3,700
3,200
2,300
2,000
17,000
6,900
3,000
173,900
12,700
7,600
26,900
18,200
400
1,400
20
18,600
1,400
7,100
8,100
15,100
149,400
580,900
208,200
700
700
1,400
9,800
42,300
19,700
500
10
500
200
300
500
500
10
500
300
300
600
5,500
67,300
17,000
223,300
6,500
53,700
938,500
71,700
29,000
344,400
* Within pit limits cut-off grade 0.3% Ni; below pit limits cut-off grade 0.7% Ni; Totals are rounded to reflect acceptable precision, subtotals may not reflect global totals. All oxide material is considered as waste
and therefore not reported as Resources.
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ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
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CENTAURUS METALS ANNUAL REPORT 2022
Classification*
Measured
Indicated
Measured & Indicated
Inferred
Total
Mt
14.0
71.7
85.8
22.2
108.0
Grade
Ni %
1.06
0.81
0.85
0.94
0.87
Cu %
0.07
0.06
0.06
0.09
0.07
Co ppm
391
238
263
291
269
Zn%
0.48
0.31
0.34
0.24
0.32
Contained Metal
Co
Cu
Ni
149,400
580,900
730,300
208,200
938,500
9,800
42,300
52,000
19,700
71,700
5,500
17,000
Zn
67,300
223,300
22,500
290,700
6,500
53,700
29,000
344,400
* Within pit limits cut-off grade 0.3% Ni; below pit limits cut-off grade 0.7% Ni; Totals are rounded to reflect acceptable precision, subtotals may not reflect global totals. All oxide material is considered as waste
and therefore not reported as Resources.
The Company’s Ore Reserves and Mineral Resource for its iron ore holdings are shown in the following tables.
Ore Reserves as at 31 December 2022
Ore Reserves as at 31 December 2021
Project
Million
Tonnes
Jambreiro Project *
Proved
Probable
TOTAL
35.4
13.1
48.5
Fe
%
28.5
27.2
28.1
SiO2 %
Al2O3 %
49.6
49.0
49.4
4.3
5.3
4.6
P
%
0.04
0.04
0.04
*20% Fe cut-off grade applied; Mine Dilution - 2%; Mine Recovery - 98%;
LOI
%
Million
Tonnes
Fe
%
SiO2 %
Al2O3 %
1.7
2.4
1.9
35.4
13.1
48.5
28.5
27.2
28.1
49.6
49.0
49.4
4.3
5.3
4.6
P
%
0.04
0.04
0.04
Mineral Resources as at 31 December 2022
Mineral Resources as at 31 December 2021
Project
Million
Tonnes
Fe
%
SiO2 %
Al2O3 %
Jambreiro Project *
Measured
Indicated
Inferred
TOTAL
Canavial Project*
Indicated
Inferred
TOTAL
Passabém Project**
Indicated
Inferred
TOTAL
TOTAL
COMBINED
44.3
37.7
45.1
127.1
6.5
21.1
27.6
2.8
36.2
39.0
193.7
29.2
27.5
27.3
28.0
33.6
29.6
30.5
33.0
30.9
31.0
29.0
50.5
51.1
52.7
51.4
33.6
38.0
37.0
48.8
54.0
53.6
49.8
3.9
3.7
3.3
3.7
7.1
5.7
6.0
1.9
0.7
0.8
3.4
P
%
0.04
0.04
0.05
0.05
0.10
0.07
0.07
0.03
0.07
0.07
0.05
LOI
%
Million
Tonnes
Fe
%
SiO2 %
Al2O3 %
1.6
1.7
1.3
1.5
7.9
5.9
6.4
0.6
0.1
0.1
1.9
44.3
37.7
45.1
127.1
6.5
21.1
27.6
2.8
36.2
39.0
193.7
29.2
27.5
27.3
28.0
33.6
29.6
30.5
33.0
30.9
31.0
29.0
50.5
51.1
52.7
51.4
33.6
38.0
37.0
48.8
54.0
53.6
49.8
3.9
3.7
3.3
3.7
7.1
5.7
6.0
1.9
0.7
0.8
3.4
P
%
0.04
0.04
0.05
0.05
0.10
0.07
0.07
0.03
0.07
0.07
0.05
LOI
%
1.7
2.4
1.9
LOI
%
1.6
1.7
1.3
1.5
7.9
5.9
6.4
0.6
0.1
0.1
1.9
*20% Fe cut-off grade applied; ** 27% Fe cut-off grade applied; Mineral Resources are reported inclusive of Ore Reserves. Totals are rounded to reflect acceptable precision, subtotals may not reflect global totals.
MINERAL RESOURCES AND ORE RESERVES
ANNUAL STATEMENT AND REVIEW
The Company carries out an annual review of its Mineral Resources
and Ore Reserves as required by the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code) 2012 edition and the ASX Listing Rules.
An update of the Jaguar Nickel Project Mineral Resource was
completed on 10 November 2022 and a review was carried out as
at 31 December 2022. The Jaguar Resource estimates have been
reported in accordance with the JORC Code 2012 edition and the
ASX Listing Rules.
The review of the iron ore Mineral Resources and Ore Reserves was
carried out as at 31 December 2022. The Jambreiro Resources and
Reserve estimate have been reported in accordance with the JORC
Code 2012 edition and the ASX Listing Rules. The remaining Mineral
Resource estimates were prepared and disclosed under the JORC
Code 2004 edition.
The information prepared for the Canavial, and Passabém Resource
estimates have not been updated to comply with the JORC Code
2012 edition on the basis that the information has not materially
changed since it was last reported.
The Company is not aware of any new information or data that
materially affects the information included in this Annual Statement
and confirms that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement
continue to apply and have not materially changed.
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ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
25
CENTAURUS METALS ANNUAL REPORT 2022
ESTIMATION GOVERNANCE STATEMENT
The Company ensures that all Mineral Resource and Ore Reserve
calculations are subject to appropriate levels of governance and
internal controls. Exploration Results are collected and managed by
competent qualified staff geologists and overseen by the Exploration
General Manager. All data collection activities are conducted to
industry standards based on a framework of quality assurance and
quality control protocols covering all aspects of sample collection,
topographical and geophysical surveys, drilling, sample preparation,
physical and chemical analysis and data and sample management.
Mineral Resource and Ore Reserve estimates are prepared by
qualified independent Competent Persons and further verified
by the Company’s technical staff. If there is a material change
in the estimate of a Mineral Resource, the modifying factors
for the preparation of Ore Reserves, or reporting an inaugural
Mineral Resource or Ore Reserve, the estimate and supporting
documentation in question is reviewed by a suitably qualified
independent Competent Person.
APPROVAL OF MINERAL RESOURCES AND ORE
RESERVE STATEMENT
The Company reports its Mineral Resources and Ore Reserves on
an annual basis in accordance with the JORC Code 2012 Edition.
The Ore Reserves and Mineral Resources Statement is based on
and fairly represents information and supporting documentation
prepared by competent and qualified independent external
professionals and reviewed by the Company’s technical staff. The
Ore Reserves and Mineral Resources Statement has been approved
by Roger Fitzhardinge, a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy. Roger Fitzhardinge
is a permanent employee of Centaurus Metals Limited. Mr
Fitzhardinge has consented to the inclusion of the Statement in the
form and context in which it appears in this Annual Report.
COMPETENT PERSON’S STATEMENT
Jaguar Nickel Project
The information in this Annual report that relates to Exploration
Results is based on information compiled by Mr Roger Fitzhardinge
who is a Member of the Australasia Institute of Mining and
Metallurgy. Mr Fitzhardinge is a permanent employee and
shareholder of Centaurus Metals Limited. Mr Fitzhardinge has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he
is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Fitzhardinge
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The information in this Annual report and the November 2022
Mineral Resources is based on that relates to the Jaguar Mineral
Resource is based on information compiled by Mr Lauritz Barnes
(consultant with Trepanier Pty Ltd) and Mr Roger Fitzhardinge
(a permanent employee and shareholder of Centaurus Metals
Limited). Mr Barnes and Mr Fitzhardinge are both members of the
Australasian Institute of Mining and Metallurgy. Mr Barnes and Mr
Fitzhardinge have sufficient experience of relevance to the styles
of mineralisation and types of deposits under consideration, and
to the activities undertaken to qualify as Competent Persons as
defined in the 2012 Edition of the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Specifically, Mr Fitzhardinge
is the Competent Person for the database (including all drilling
information), the geological and mineralisation models plus
completed the site visits. Mr Barnes is the Competent Person for
the construction of the 3-D geology / mineralisation model plus the
estimation. Mr Barnes and Mr Fitzhardinge consent to the inclusion
in this report of the matters based on their information in the form
and context in which they appear.
Jambreiro Iron Ore Project
The information in this report that relates to Jambreiro Mineral
Resources is based on information compiled by Roger Fitzhardinge
who is a Member of the Australasian Institute of Mining and
Metallurgy and Volodymyr Myadzel who is a Member of Australian
Institute of Geoscientists. Roger Fitzhardinge is a permanent
employee of Centaurus Metals Limited and Volodymyr Myadzel was
the Senior Resource Geologist of BNA Mining Solutions, independent
resource consultants engaged by Centaurus Metals, at the time
when the Mineral Resource estimate was first completed. Roger
Fitzhardinge and Volodymyr Myadzel have sufficient experience
which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which they are undertaking
to qualify as a Competent Person as defined in the 2012 Edition of
the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Roger Fitzhardinge and Volodymyr
Myadzel consent to the inclusion in the report of the matters based
on their information in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based
on information compiled by Beck Nader who is a professional Mining
Engineer and a Member of the Australian Institute of Geoscientists.
Beck Nader is the Managing Director of BNA Mining Solutions
and was a consultant to Centaurus. Beck Nader has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity, which he
is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Beck Nader consents
to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
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ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
27
CENTAURUS METALS ANNUAL REPORT 2022
Tenement List
BRAZILIAN TENEMENTS
Tenement
831.638/2004
831.639/2004
831.649/2004
833.409/2007
834.106/2010
831.645/2006
830.588/2008
833.410/2007
856.392/1996
850.475/2016
851.571/2021
851.563/2021
850.071/2014
851.767/2021
851.768/2021
851.769/2021
Project Name
Canavial
Canavial
Jambreiro (Mining Lease)
Jambreiro (Mining Lease)
Jambreiro (Mining Lease)
Passabém
Passabém
Regional Guanhães
Jaguar (Mining Lease Application)
Itapitanga
Terra Roxa (Jaguar Regional)
Santa Inês (Jaguar Regional)
Curionópolis Project
Curionópolis Project
Curionópolis Project
Curionópolis Project
Location
Minas Gerais
Minas Gerais
Minas Gerais
Minas Gerais
Minas Gerais
Minas Gerais
Minas Gerais
Minas Gerais
Pará
Pará
Pará
Pará
Pará
Pará
Pará
Pará
AUSTRALIAN TENEMENTS
Tenement
EPM14233
Project Name
Mt Isa
Location
Queensland
(1) Subject to a Farm-Out and Joint Venture Exploration Agreement with Summit Resources (Aust) Pty Ltd.
Summit has earned a 90% interest in the Project. Aeon Metals Limited has acquired 80% of Summits Interest giving them a total interest of 72% of the tenement.
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Interest
10% (1)
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27
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CENTAURUS METALS ANNUAL REPORT 2022
Additional Shareholder Information
The shareholder information set out below
was applicable as at 31 March 2023.
Number
of Holders
Number
of Options
Exercise
Price $
Expiry
Date
Subject to
Vesting
Conditions
SUBSTANTIAL SHAREHOLDERS
The Company had the following substantial shareholders.
→ McCusker Holdings Pty Ltd 13.9%
→ Sprott Asset Management 6.0%
→ Regal Funds Mgt 5.9%
→ Dundee Resources 5.3%
→ Harmanis Holdings Pty Ltd 5.1%
CLASS OF SHARES AND VOTING RIGHTS
There were 3,419 holders of ordinary shares in the Company as at
the above date. The voting rights attaching to the ordinary shares
are that on a show of hands every member present in person or by
proxy shall have one vote and upon a poll each share shall carry
one vote.
As at the above date the Company had the following unlisted options
over 10,569,464 ordinary shares. There are no voting rights attached
to the unissued ordinary shares. Voting rights will attach to the
unissued ordinary shares when the options have been exercised.
1
3
4
1
3
7
8
7
116,667
0.180
31/05/23
1,400,000
0.392
31/05/23
3,952,402
-
31/12/23
233,334
0.180
31/05/24
1,400,000
0.405
31/05/24
1,395,452
1,225,220
846,389
-
-
-
31/12/24
31/12/25
31/12/26
No
No
No
No
No
Yes
Yes
Yes
RESTRICTED SECURITIES
There are currently no restricted securities or securities subject to
voluntary escrow on issue.
ON-MARKET BUY BACK
There is no current on-market buy back.
DISTRIBUTION OF EQUITY SECURITIES
The distribution of numbers of equity security holders by size of holding is shown in the table below. There were 379 holders of less than a
marketable parcel (being a minimum $500 parcel at $0.94 per share) of ordinary shares.
From
1
1,001
5,001
10,001
100,001
To
1,000
5,000
10,000
100,000
and over
Ordinary Shares
Listed Options
Unlisted Options
Unlisted Options
(ESOP)
Performance
Rights
647
855
563
1,088
266
3,419
-
-
-
-
-
-
-
-
-
-
3
3
-
-
-
4
3
7
-
-
-
-
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CENTAURUS METALS LIMITED ANNUAL REPORT
29
CENTAURUS METALS ANNUAL REPORT 2022
SHAREHOLDERS
The names of the twenty largest holders of ordinary shares (CTM) are listed below:
Number Held
Percentage of
Issued Shares (%)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Citicorp Nominees Pty Limited
McCusker Holdings Pty Ltd
HSBC Custody Nominees
Harmanis Holdings Pty Ltd
BNP Paribas Noms Pty Ltd
Mr Bradley George Bolin
UBS Nominees Australia Pty Ltd
J P Morgan Nominees Australia Pty Limited
Lujeta Pty Ltd
Mr Darren Gordon
Mr Roger Fitzhardinge
Jayleaf Holdings Pty Ltd
Atlas Iron Limited
Zero Nominees
Merrill Lynch (Australia) Nominees Pty Limited
Precision Opportunities Fund Ltd
BPM Investments Limited
HS Superannuation Pty Ltd
Neweconomy Com Au Nominees Pty Limited
Mr Luigi Reghelin
Total Top 20 Shareholders
Other Shareholders
Total Number of Issued Shares
95,541,852
59,250,000
24,029,126
21,573,569
17,967,475
12,004,706
11,929,469
10,012,556
8,500,000
6,335,546
6,150,724
6,000,000
4,021,351
3,706,429
3,284,451
3,125,374
3,000,000
2,445,392
2,365,564
2,000,000
303,243,584
123,862,689
427,106,273
22.37%
13.87%
5.63%
5.05%
4.21%
2.81%
2.79%
2.34%
1.99%
1.48%
1.44%
1.40%
0.94%
0.87%
0.77%
0.73%
0.70%
0.57%
0.55%
0.47%
71.00%
29.00%
Corporate Governance Statement
A copy of Centaurus’ 2022 Corporate Governance Statement, which
provides detailed information about governance, and a copy of
Centaurus’ Appendix 4G which sets out the Company’s compliance
with the recommendations in the fourth edition of the ASX Corporate
Governance Council’s Principles and Recommendations is available
on the corporate governance section of the Company’s website at
www.centaurus.com.au/corporate-governance.
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CENTAURUS METALS ANNUAL REPORT 2022
FINANCIAL REPORT
31 December 2022
Financial Report – 31 December 2022
Centaurus Metals Limited ABN 40 009 468 099
And its controlled entities
Contents
Directors’ Report .................................................................................................................................................................. 3
31
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................... 25
53
Consolidated Statement of Financial Position .................................................................................................................... 26
54
Consolidated Statement of Changes in Equity.................................................................................................................... 27
55
Consolidated Statement of Cash Flows .............................................................................................................................. 28
56
Notes to the Consolidated Financial Statements ............................................................................................................... 29
57
Directors’ Declaration ......................................................................................................................................................... 51
79
Independent Auditor’s Report ............................................................................................................................................ 52
80
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31
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Directors’ Report
Your directors present their report on the Consolidated Entity (“Group”) consisting of Centaurus Metals Limited
(“Centaurus” or “the Company”) and the entities it controlled at the end of, or during, the year ended 31 December 2022
together with the consolidated financial report and accompanying audit report.
1
Directors
The directors of the Company at any time during or since the end of the year are:
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Dr N Streltsova
Independent Non-Executive Chair
Managing Director
Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director (appointed 15th August 2022)
Unless otherwise disclosed, all directors held their office from 1 January 2022 until the date of this report.
2
Directors and Officers
Mr Didier M Murcia, AM, B.Juris, LL.B
Non-Executive Chair, Age 60
Independent non-executive director appointed 16 April 2009 and appointed Chair 28 January 2010. Lawyer with over 30
years’ legal and corporate experience in the mining industry. Mr Murcia is currently Honorary Australian Consul for the
United Republic of Tanzania. He is Chair and founding director of Perth-based legal group MPH Lawyers. He is Chair of
Strandline Resources Limited.
During the last three years Mr Murcia has held directorships in the following ASX listed companies:
Alicanto Minerals Limited (appointed 30 May 2012) - Non-Executive Director
Strandline Resources Limited (appointed 23 October 2014) - Non-Executive Chair
Mr Darren P Gordon, B.Bus, FCA, AGIA, ACG, MAICD
Managing Director, Age 51
Managing Director appointed 4 May 2009. Mr Gordon is a Chartered Accountant with over 25 years’ resource sector
experience as a senior finance and resources executive. He is a member of both the Governance Institute of Australia
and the Institute of Company Directors. He has more than 12 years’ experience in Brazil and has developed an extensive
network of contacts within Government, the resources industry and the broader business community in country. He has
developed significant exposure to a number of different resource commodities as Managing Director of the Company
and lead the negotiations with Vale to acquire the Jaguar Project.
Mr Gordon was formerly Chief Financial Officer for Gindalbie Metals Limited (1999-2008).
Mr Bruno R Scarpelli, M.Sc., PMP
Executive Director, Age 45
Executive Director appointed 3 September 2015. Mr Scarpelli is an engineer with over 15 years’ experience in the mining
sector, specifically in the environmental approvals, health and safety and human resources fields. He was formerly
environmental manager for Vale’s world class S11D Iron Ore Project.
Mr Scarpelli is Administrator of Centaurus’ Brazilian subsidiaries and the Country Manager – Brazil.
Mr Mark D Hancock, B.Bus, CA, F Fin
Non-Executive Director, Age 54
Independent non-executive director appointed 23 September 2011. Mr Hancock is a Company Director and consultant
to the resource industry with a focus on commercial advisory and commodity marketing. He has over 30 years’ experience
in senior commercial and financial roles across a number of leading companies in Australia and South East Asia, including
most recently spending 13 years with Atlas Iron as CFO and CCO and prior to that with oil and gas industry participants
Woodside Petroleum Ltd and Premier Oil Plc.
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Financial Report – 31 December 2022
During the last three years Mr Hancock has held directorships in the following ASX listed companies:
Cyclone Metals Ltd (formerly Cape Lambert Resources Ltd, appointed 11 February 2020; resigned 4 August 2020)
Non- Executive Director
CuFe Ltd (Appointed 1 September 2019) Executive Director, part time basis
Strandline Resources Ltd (Appointed 11 August 2020) Non-Executive Director
Mr Hancock is Chair of the Audit & Risk Committee
Mr Chris A Banasik, B.App.Sc (Physics), M.Sc (Geology), Dip Ed, GAICD
Non-Executive Director, Age 61
Independent non-executive director appointed 28 February 2019. Mr Banasik is a geologist with more than 30 years’
experience across multiple disciplines and commodities. He was a founding Director of WA gold producer Silver Lake
Resources (ASX: SLR). He has held a range of senior geological and executive roles for companies including Consolidated
Minerals, Reliance Nickel and Western Mining Corporation. He has extensive experience in nickel exploration, project
development and operations, having held several geological and management positions with WMC (1986-2001).
During the last three years Mr Banasik has not held directorships in any other ASX listed companies.
Mr Banasik is the Chair of the Remuneration Committee
Dr Natalia Streltsova, MSc, PhD (Chem Eng), GAICD
Non-Executive Director, Age 61
Independent non-executive director appointed 15th August 2022. Dr Streltsova is a Chemical Engineer with both an MSc
and PhD. She was Program Leader – Hydrometallurgy and Project Manager for WMC Resources between 2000 and 2005,
working on a range of projects including Mt Keith and Olympic Dam; Team Leader – Hydrometallurgy and Technology
Development Manager for BHP Billiton between 2005 and 2008; Manager Development and Technical Solutions for GRD
Minproc (2008) and Director, Technical Development, for Vale SA in Brazil between 2008 and 2012.
During the last three years Dr Streltsova has held directorships in the following ASX listed companies:
Australian Potash Limited (Appointed December 2021) Non-Executive Chair
Neometals Limited (Appointed April 2016) Non-Executive Director
Ramelius Resources Limited, (Appointed October 2019) Non-Executive Director, Chair of the Risk & Sustainability
Committee
Western Areas Limited (January 2017 until its takeover by IGO on 20 June 2022) Non-Executive Director
Dr Streltsova is Chair of the Technical Committee which was formed after the end of the reporting period.
Mr Johannes W Westdorp, B.Bus, CPA, MAICD, GradDip App Sc
Chief Financial Officer & Company Secretary, Age 59
Mr Westdorp was appointed as Chief Financial Officer on 11 November 2019 and Company Secretary on 15 January 2020.
Mr Westdorp is a Certified Practicing Accountant. He was previously Chief Financial Officer and Company Secretary of
Centaurus between 2012 and 2015. He has over 30 years’ experience in the resources sector and has held the roles of
Chief Financial Officer and Interim Chief Executive Officer of mineral sands producer, MZI Resources Ltd and senior roles
with Murchison Metals Ltd and Burrup Fertilisers Pty Ltd. He has financial, commercial and operations experience across
a number of commodities including iron ore, gold, base metals and mineral sands.
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Financial Report – 31 December 2022
3
Director & Committee Meetings
The number of meetings of the Company’s Board of Directors and its Committees held during the year ended 31
December 2022 and the number of meetings attended by each director are shown in the table below.
Director
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Dr N Streltsova
Board
Audit & Risk Committee
Remuneration Committee
Held1
Attended
Held1
Attended
Held1
Attended
6
6
6
6
6
4
6
6
6
6
6
4
2
n/a
n/a
2
2
n/a
2
n/a
n/a
2
2
n/a
4
n/a
n/a
4
4
n/a
4
n/a
n/a
4
4
n/a
(1) Denotes the number of meetings held during the time the director held office (excluding circular resolutions)
The Company does not have a formal Nomination Committee. The function is performed by the full Board. There is no
additional remuneration for committee members.
4
Operating and Financial Review
A summary of consolidated results is set out below
Interest Income
R&D Tax refund
Other income
31 December
2022
$
31 December
2021
$
1,348,066
517,875
6,256
1,872,197
235,207
265,862
-
501,069
Loss before income tax
Loss attributable to members of Centaurus Metals Limited
(42,627,555)
(42,627,555)
(16,994,715)
(16,994,715)
4.1
Financial Performance
During the year ended 31 December 2022 the Group expensed Exploration and Evaluation costs totaling $36,225,206
(2021: $13,198,599) in accordance with the Group’s accounting policy. The Exploration and Evaluation costs primarily
comprise costs in relation to exploration and feasibility study costs at the Jaguar Nickel Sulphide Project in Brazil.
4.2
Financial Position
At the end of the year the Group had a cash balance of $34,047,722 (2021: $8,259,389) and net assets of $49,328,699
(2021: $16,750,646). Total liabilities amounted to $8,065,982 (2021: $10,099,118) and consisted of trade and other
payables, financial liabilities, lease liabilities and employee benefits.
4.3 Overview
Centaurus is an ASX listed company focused on the near term development of the Jaguar Nickel Sulphide Project, located
in the world-class Carajás Mineral Province of northern Brazil. The Carajás Mineral Province is one of the world's premier
mining addresses, hosting one of the world's largest concentrations of large-tonnage mineral deposits. Centaurus’ goal
is to become a new-generation nickel sulphide mining company in Brazil, capable of delivering more than 20,000t per
annum of Class-1 nickel to global markets over the long term, and to do so in a sustainable and responsible manner that
ensures the Company meets the highest possible ESG (Environmental, Social and Governance) standards. The Jaguar
Project has nickel resources of 108.0 Mt @ 0.87% Nickel (Ni) for 938,500t1 of contained nickel.
Centaurus’ key focus throughout the 2022 calendar year was on the continued development of the Jaguar Project. The
Definitive Feasibility Study (DFS) for the Project was advanced during the period. An updated Mineral Resources Estimate
(MRE) for the Jaguar Project was released in November 2022, cementing the Project’s position as a Tier-1 global nickel
sulphide development project with class-leading greenhouse gas (GHG) emission credentials
1 Refer ASX Release of 10 November 2022. The Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters
underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form
and context in which the competent persons findings were presented have not been materially modified from the original announcement.
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Financial Report – 31 December 2022
Activity was underpinned by a strongly supported institutional capital raise of $75m, before costs, which was completed
in February 2022.
4.4
Jaguar Nickel Sulphide Project
The Jaguar Project was acquired from global mining giant, Vale S.A. (Vale) in August 2019. The Project hosts multiple
nickel sulphide deposits and exploration targets within a 30km2 land package in the western portion of the world-class
Carajás Mineral Province. Jaguar is ideally located close to existing infrastructure, just 35km north of the regional centre
of Tucumã (population +35,000) with access to hydroelectrical grid power (230kV sub-station) 15km south-east of the
project at Vale’s Onca Puma ferronickel operations see image below.
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Financial Report – 31 December 2022
Drilling & Exploration Programs
The focus of drilling during the first half of the year was on resource development at all the Jaguar Deposits. Extensive in-
fill drilling was undertaken, designed to upgrade all Resources within a constrained US$22,000/t nickel price pit shell limit
into the higher confidence Measured and Indicated categories.
RC drill rigs completed sterilization programs over the Jaguar processing plant area and proposed mine infrastructure
areas (tailings dam sites, waste deposit, etc).
Mineral Resource Estimate
Following the extensive in-fill drilling campaign Centaurus updated its Mineral Resource Estimate (MRE) for the Jaguar
Project to 108 Mt @ 0.87% Ni for 938,500 of contained nickel, confirming Jaguar as one of the largest nickel sulphide
resources held by an ASX listed company and the largest outside of the majors. The success of the in-fill resource
development project during the year resulted in a 100% increase in the Measured and Indicated component of the MRE
to 85.8 Mt @ 0.85% Ni for 730,300t of contained nickel, representing more than 75% of the Global MRE. Measured and
Indicated Resources will be available for conversion to Ore Reserves as part of the Definitive Feasibility Study (DFS).
The November 2022 MRE represented an increase of 28% since the December 2021 MRE and more than 80% since the
Company’s maiden MRE in June 2020, adding 421kt of contained nickel in 30 months.
In-fill drilling targeting the first three years of operation at Jaguar Central and Onça Preta has returned a Measured
Resource estimate of 14.0 Mt @ 1.06% Ni for 149,400t of contained nickel metal. The high-grade and higher confidence
resources will be an important part of the early mine plan during the project pay-back period.
The Jaguar mineralisation remains open down-dip at all deposits and locally along strike, with outstanding potential to
continue strong resource growth driven by step-out and extensional drilling targeting DHEM conductor plates and
greenfields drilling of the extensive regional exploration pipeline.
Project Development
Significant activity was progressed on the DFS. Industry-leading engineering firm Ausenco was appointed as Lead Engineer
to deliver both the process and non-process plant infrastructure components of the study. Ausenco possesses strong
experience in the processing methods planned for the Jaguar Project as well as experience in project studies and
construction in South America through its offices in Belo Horizonte (Brazil), Santiago (Chile) and Lima (Peru). Ausenco has
assembled a study team with both strong technical skills and detailed local knowledge of construction in Brazil, and
importantly, the Carajás mineral province.
Flotation & Pilot Plant Testwork
A significant amount of flotation test work has been completed for the design of the flotation part of the overall process
flowsheet design. Extensive flotation testwork has been completed on the Jaguar nickel sulphide ore, allowing the
Company to prepare over 800kg of concentrate for pilot plant testing of the planned pressure oxidation circuit.
Considerable work was completed to finalise the process flowsheet to enable the POX pilot plant program to commence
in January 2023. The pilot plant testwork will be carried out by ALS Limited (ALS) in four phases. The first phase will test
the pressure oxidation, primary neutralization and copper recovery to solution and will be conducted over a two-week
period. This will be followed by the Phase 2 which is designed to extract zinc (for a by-product revenue stream) and
soluble calcium from Phase 1 leach solution with minimal nickel loss. Phase 3 is designed to initially extract cobalt (again
for a by-product revenue stream) and magnesium followed by the purification of the nickel solution to produce nickel
sulphate. Nickel sulphate crystallization and zinc and cobalt hydroxide precipitate production will be piloted in Phase 4.
The pilot testwork will culminate with the delivery of nickel sulphate and other final products for product marketing, as
well as assisting in providing the design criteria for Ausenco to use in the development of the overall process flowsheet
for the DFS.
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Mining
Pricing proposals were received from mining contractors to support the development of the DFS opex, open pit
optimisations and mine planning work. These proposals are under commercial and technical evaluation to select pricing
for use in open pit planning for the DFS, utilising the most recent MRE orebody model.
Process Plant Engineering
The concentrator section of the processing facility, consisting of crushing, grinding and flotation and thickening circuits,
was finalised for the study and capital equipment packages were progressively issued for pricing. Pricing for the major
equipment was received from suppliers during the December quarter, with the commercial and technical evaluation
process well advanced.
The process design and layout of the refinery circuit and non-process plant infrastructure (NPI) commenced.
Environmental Approvals
The environmental approval process is progressing without issue, albeit at a slightly slower pace than the Company was
anticipating. Several meetings, including an initial site visit, have been held with the Environmental Agency in Para State
(SEMAS) to keep them informed on project development activities.
Off-take Discussions
Off-take discussions are continuing in relation to the products to be produced from Jaguar. Vale has the right to purchase
product at arm’s length market-based pricing under the original acquisition agreement for the Jaguar Project. Centaurus
retains discretion over what nickel products will be produced at Jaguar.
The introduction of the Inflation Reduction Act by the US Government and the Critical Raw Materials Act of the European
Union has highlighted the strategic importance of energy metals like nickel and those that can be sourced in geopolitically
stable jurisdictions with a low-emission footprint. Brazil fits these criteria well as it is South America’s largest pro-mining
jurisdiction, the 8th largest global economy and currently more than 80% of the country’s grid power is delivered from
renewable sources. It is anticipated that the Jaguar Project will be able to secure 100% renewably sourced power by the
time it is in production.
With its very large metal endowment, the Jaguar Project is extremely well placed to capitalise on the fast-growing electric
vehicle and battery metals market.
New Core Shed
The Company completed the construction of the new site core shed on site at Jaguar with a capacity to store 300,000m
of core. Shelving has been installed and all core from the existing core shed in Tucumã has now been relocated to the
new facility on site. The shed will also house new core as drilling on site progresses.
4.5
Carajas Generative Projects
The Company is negotiating or has completed landowner access agreements and started early-stage exploration including
mapping and soil sampling on a number of new targets in the Carajas region. Geophysical surveys will be planned once
exploration targets have been determined.
Santa Inês Project
The Santa Inês Project is located 15km2 northwest of the Jaguar Project (Figure 1). The recently granted 18 km2
exploration lease is positioned on a strand of the regionally significant Canaã Fault which is the same structure that is
understood to have been critical in the mineralisation processes of the Jaguar Deposit.
Terra Roxa Project
The Terra Roxa Project is a recently granted 29km2 exploration lease located 30km southwest of the Jaguar Project (Figure
1). The project is located on the McCandless Fault which traverses the Jaguar Project through the Puma Layered Mafic-
Ultramafic Complex and is understood to be the source of nickel for the hydrothermal mineralisation seen at Jaguar.
Terra Roxa is located immediately south of Vale’s Mundial nickel-laterite deposit which is the laterite cap of another
mafic-ultramafic intrusion.
Page 8 of 55
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Financial Report – 31 December 2022
Curionópolis Project
The Curionópolis Project is a group of four recently granted exploration leases covering 51km2 located 15km east of Oz
Minerals Antas Norte Cu-Au operation (Figure 1) in the Eastern Carajás. The tenements cover more than 15km of strike
of the highly prospective Itacaiúnas Supergroup (which hosts all IOCG deposits within the Carajás Mineral Province)
coincident with a strong continuous aeromagnetic anomaly.
4.6
Jambreiro Iron Ore Project
The Company has commenced the process to refresh all environmental licenses required to develop the project. As part
of this process, Supram (the Minas Gerais environmental agency) has advised that new wet and dry season environmental
data will need to be collected to support a new Installation License (LI) application given the age of the data used in the
originally approved LI. The new data is expected to be collected over the next 3-4 months, with the new application
targeted for lodgment in July 2023. Approval is anticipated to be 12 months from lodgment.
The Company has also lodged the documentation to re-apply for all water permits necessary to operate the project. All
water permits and environmental licences to build the Project were previously granted and are therefore expected to be
granted after the applications have been duly considered by the relevant agencies.
The Company continues to assess opportunities to realise value from the Jambreiro Iron Ore Project and carried out
several activities focused on this goal during the year. Realising value from the project remains contingent on the
completion of off-take or partnering arrangements and discussions remain open in this regard.
4.7
Health & Safety
One Lost Time Injury occurred during the year resulting in an LTIFR 12-month moving average of 4.89. The average LTI
Frequency Rate for the West Australian Exploration Industry for the 2020/21 Period was 2. One medical treatment injury
occurred during the year.
The Total Recordable Injury Frequency Rate for the Group’s operations in Brazil was 9.78, a good improvement compared
to the prior year result of 12.50.
4.8
ESG Program
The Company adopted its formal environmental, social and governance (ESG) policy framework late in 2021. The
framework is based on the recommendations and principles of two key ESG authorities, being:
Towards Sustainable Mining Principles (TSM); and
Principles of Responsible Investment (PRI)
TSM is the Mining Association of Canada’s (MAC) commitment to responsible mining. It is a set of tools and indicators to
drive performance and ensure that key mining risks at any operation are managed responsibly. The PRI defines
responsible investment as a strategy and practice to incorporate environmental, social and governance factors in
investment decisions and active ownership. The PRI is a global organisation that encourages and supports the uptake of
responsible investment practices in the investment industry.
Centaurus’ ESG program combines the TSM and PRI principles with actions to be implemented during exploration and
operations. The following initiatives have already been undertaken by the Company to date at the Jaguar Project region:
All Centaurus employees working on the Jaguar Project live in the local town with their families, solidifying the
relationship between the Company and the local community.
More than 90% of the current project workforce, including employees and outsourced labour, are from the
south-eastern region of the State of Pará.
More than 90% of the Company’s investment expenditure relating to exploration and development work at the
jaguar Project to date has been awarded to the local community through drilling contracts, engagement of
consultants and services and purchase of equipment and supplies.
During the collection of social data, more than 95% of the local community interviewed were in favour of the
project.
Construction and operation of a plant nursery on site with a capacity of 10,000 seedlings to support re-
vegetation.
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GHG Emissions
Since January 2022, the Company has been monitoring Scope 2 greenhouse gas (GHG) emissions and sinks associated
with the Jaguar Project. The main carbon sink is the standing forest. The main source of carbon from the Project at present
is the combustion of diesel to run drill rigs.
The Jaguar Project currently represents a carbon sink, removing about 12,000t of GHG annually from the atmosphere,
which is equivalent to removing approximately 2,570 internal combustion engine vehicles (4.6t GHG per vehicle per year)
from the roads each year.
Based on the work completed with Skarn Associates previously, the Jaguar Project is expected to have GHG emissions
that are less than 97% of global nickel production once in operation.
Water Wells
Bore hole pumping tests on five bores drilled to assess the quantity and quality of groundwater inflows to the open pit
operations have indicated that low flow rates are to be expected, which is very positive for the overall project
development. Hydrogeological modelling of the pump test results commenced in December to quantify the flows and
aquifer characteristics. This modelling will be completed in January.
Plant Nursery
The Company established a plant nursery on site to facilitate the revegetation of previously cleared farmland. The
planned revegetation will allow new forest corridors to be established around the site to assist with the movement,
protection and biodiversity of fauna.
Community Consultation
In December, presentations about the Jaguar Project were made to the mayors and councilors of the three municipalities
in the region. These presentations were designed to prepare the local authorities for the official public hearings planned
to be held as part of the environmental approvals process. The same presentations will be made to the broader
community in all three municipalities in January 2023.
Construction Training Programs
During the year, the Company further advanced the enrolment process for construction training with over 1,900
applications to date having been received from local communities. The Company intends to train up to 1,500 people in
various trades that will allow them to be able to seek employment once construction of the Jaguar Project commences.
The training programs are intended to be conducted in conjunction with local industry training college (SENAI) in 2023
and 2024.
4.9
Corporate
The Company completed an institutional share placement in January 2022 which raised $75m to fund the growth and
development of the Jaguar Project including progressing the DFS for Jaguar and continuing the significant drilling program
for the Project. Funds are being used for pre-development and financing activities ahead of a planned final investment
decision (FID) on the Project.
During the period, the Jaguar Project was selected as a Strategic Minerals Project by the Brazilian Federal Government.
The Strategic Minerals Policy is part of the Investment Partnership Program – PPI (Programa de Parcerias de
Investimento), a new Brazil governmental initiative designed to support companies while developing their projects across
the country. The PPI program supports projects that are identified as strategic minerals projects in Brazil and provides
the titleholder with specialised governmental support for the development of their projects.
The Company made a number of key appointments to its Board and senior leadership team during the year as it continued
to build its in-house technical, commercial, legal and operational expertise to progress the Jaguar Project towards
financing, development and operations. In August 2022 former Vale, WMC and BHP executive, Dr Natalia Streltsova was
appointed as a Non-Executive Director. Dr Streltsova’s significant experience in nickel processing has enhanced Board
capability in a key area for the business.
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Financial Report – 31 December 2022
The Company made two key appointments to its senior leadership team during the year as it continued to build its in-
house technical, commercial, legal and operational expertise to progress the Jaguar Project towards financing,
development and operations. Mr Fabio Borges was appointed in February as Finance Manager Brazil and is a certified
accountant with significant experience in mining. Mr Borges is based in the Company’s Belo Horizonte office. Mr Mick
Ryan was appointed in November as Project Manager to assist with delivering the Jaguar DFS. Mr Ryan is a metallurgist
with considerable experience in studies, project and construction management and operations including in nickel
processing and hydrometallurgy.
4.10 Factors and Business Risks Affecting Future Business Performance
The current and future activities of the Company are influenced by numerous factors, many of which are impacted by
events external to the control of the Company. The following factors and business risks could have a material impact on
the Company’s success in delivering its strategy:
Access to Funding
The Company’s ability to further develop the Jaguar Nickel Sulphide Project and successfully develop future projects is
contingent on the ability to fund those projects from operating cash flows or through affordable debt and equity raisings.
Ongoing exploration of the Company’s projects is contingent on developing appropriate funding solutions.
Commodity Prices
Commodity prices fluctuate according to changes in demand and supply. The Company is exposed to changes in the price
of a number of commodities, which could affect the future profitability of the Company’s projects. Significant adverse
movements in commodity prices could also affect the ability to raise debt and equity to fund future exploration and
development of projects.
Exchange Rates
The Company is exposed to changes in the US Dollar and the Brazilian Real. Sales of most commodities are denominated
in US Dollars. The Company’s capital and operating costs will be primarily denominated in Brazilian Real.
COVID-19
Disruptions as a result of the requirement to isolate infected or close contact employees has had an impact on some of
the Company’s service providers, with laboratories particularly experiencing delays in sample assay turnaround times.
These impacts have exposed the Company to delays in the delivery of study programs.
5
Significant Changes in the State of Affairs
In the opinion of directors, other than as outlined in this report, there were no significant changes in the state of affairs
of the Group that occurred during the financial year under review.
6
Principal Activities
During the period the principal activities of the Group consisted of exploration and evaluation activities related to mineral
resources in Brazil. There were no significant changes in the nature of the activities of the Group during the year.
7
Events Subsequent to Reporting Date
There has not arisen, in the interval between the end of the financial year and the date of this report an item, transaction
or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the
operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
8
Likely Developments
Other than likely developments contained in the “Operating and Financial Review” and “Events Subsequent to Reporting
Date”, further information on likely developments in the operations of the Group 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 Group.
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Financial Report – 31 December 2022
9
Environmental Regulation
The Group is subject to environmental laws and regulations under Brazilian (State and Federal) legislation depending on
the activities undertaken. Compliance with these laws and regulations is regarded as a minimum standard for the Group
to achieve. There were no known breaches of these regulations during the year.
10
Dividends
No dividend was declared or paid by the Company during the current or previous year.
11
Directors’ Interests
The relevant interest of each director in the shares and options over such shares issued by the companies within the
Group and other related bodies corporate, as notified by the directors to the ASX in accordance with S205G (1) of the
Corporations Act 2001, at the date of this report is as follows:
Directors
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Dr N Streltsova
Ordinary Shares
Options
1,771,967
6,335,546
1,166,667
1,112,254
950,001
85,000
1,200,000
2,599,631
1,029,790
800,000
1,150,001
-
12
Share Options
At the date of this report unissued ordinary shares of the Company under unlisted option are:
Options
Expiry Date
31/05/2023
31/05/2023
31/05/2023
31/05/2024
31/05/2024
31/12/2024
31/12/2025
31/12/2026
Exercise Price
$0.180
$0.392
-
$0.180
$0.405
-
-
-
Vested
116,667
1,400,000
3,952,402
233,334
-
1,395,452
-
-
7,097,855
Unvested
-
-
-
-
1,400,000
-
1,225,220
846,389
3,417,609
Total Number of
Shares Under
Option
116,667
1,400,000
3,952,402
233,334
1,400,000
1,395,452
1,225,220
846,389
10,569,464
13
Indemnification and Insurance of Officers and Auditors
During the period, the Company paid insurance premiums to insure the directors and executive officers of the Group.
The amount of premiums paid has not been disclosed due to confidentiality requirements under the contract of
insurance.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought
against directors and employees in their capacity as officers of entities in the Group, and any other payments arising from
liabilities incurred by them in connection with such proceedings, other than where such liabilities arise out of conduct
involving a willful breach of duty by the officers or the improper use by them of their position or of information to gain
advantage for themselves or someone else or to cause detriment to the Group.
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14
Non-Audit Services
During the period KPMG, the Company’s auditor, has performed certain other services in addition to their statutory
duties.
The Board has considered the non-audit services provided during the year by the auditor and in accordance with written
advice provided by resolution of the Board, is satisfied that the provision of those non-audit services during the year by
the auditor did not compromise the auditor independence requirements of the Corporations Act 2001 for the following
reasons:
all non-audit services were subject to the corporate governance procedures adopted by the Company and have
been reviewed by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
the non-audit services provided do not undermine the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the
auditor’s own work, acting in a management or decision-making capacity for the Company, acting as an advocate
for the Company or jointly sharing risks and rewards.
Details of the amounts paid to the auditor of the Company, KPMG, and its related practices for audit and non-audit
services provided during the year are set out below.
Audit services
Auditors of the Company
Audit and review of financial reports
Services other than statutory audit
Taxation compliance services
Other consulting services
31 December
2022
$
31 December
2021
$
60,000
58,861
7,576
10,590
18,166
6,986
-
6,986
15
Auditor’s Independence Declaration
The auditor’s independence declaration is set out at page 52 and forms part of the directors’ report for the
period ended 31 December 2022.
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Financial Report – 31 December 2022
16
Remuneration Report – Audited
16.1 Principles of Remuneration
The primary objective of the Group’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic
objectives and the creation of value for shareholders.
The Company’s Remuneration Committee is a sub-committee of the Board. Specialist remuneration advisors are engaged
by and report directly to the Remuneration Committee. In selecting remuneration advisors the Remuneration Committee
considers any potential conflicts of interest and ensures independence from KMP. During the period, the Remuneration
Committee sought advice from external remuneration advisors in relation to remuneration benchmarking for Executive
KMP and Non-Executive Directors.
During the period, the resources industry experienced significant pressure in relation to remuneration of professionals
and the independent reports received from the remuneration advisors indicated that increases in remuneration were
warranted in order to maintain market competitiveness for both Non-Executive Directors and KMP. The work undertaken
by the remuneration advisors did not involve providing the Remuneration Committee with any remuneration
recommendations as defined by the Corporations Act 2001.
The Board considers the recommendations of the Remuneration Committee in ensuring that executive reward satisfies
the following key criteria:
competitiveness and reasonableness;
acceptability to shareholders;
performance linked executive compensation;
transparency; and
capital management.
The Group has structured an executive remuneration framework that is market competitive and consistent with the
reward strategy of the organisation. The Board seeks to align shareholder and participant interests by ensuring the
Company’s remuneration framework applies the following principles;
focuses on the creation of shareholder value and returns;
attracts and retains high calibre executives with an inherent knowledge of the Company’s ongoing business and
activities;
rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
provides a clear structure for earning rewards;
provides recognition for contribution; and
seeks to retain experienced and competent individuals in key executive roles.
The remuneration framework consists of base salary, superannuation and short and long-term incentives. Whilst
intended to be settled in cash, the Board retains the discretion to settle short term incentives with equity. An Employee
Share Incentive Plan (ESIP) was approved by shareholders at the AGM in May 2022 and incentives settled in equity may
be offered under this plan. The ESIP replaces the Employee Share Option Plan (ESOP) which was approved by
shareholders at the 2019 AGM.
The overall level of executive reward takes into account the performance of the Group over a number of years, with
greater emphasis given to the current and prior year. Over the past 5 years, the Group was involved in mineral exploration
and pre-development activities and therefore growth in earnings is not considered a relevant measure. Shareholder
wealth is currently primarily dependent upon exploration and development success in addition to being influenced by
broader market factors.
The performance of the Group in respect of the current period and the previous four financial years is set out below:
2022
$
2021
$
2020
$
2019
$
2018
$
Net Loss
(42,627,555)
(16,994,715)
(11,468,825)
(4,275,397)
(4,197,361)
Change in share price (1)
Change in share price
$0.010
1%
$0.290
35%
$0.625
321%
$0.090
86%
$0.000
-
(1)
In April 2020 the Company completed a 15-for-1 share consolidation, comparatives have been restated.
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Financial Report – 31 December 2022
16.2 Remuneration Framework
The executive remuneration and reward framework currently has four components:
base salary;
short term incentives (STIs);
long term incentives (LTIs); and
other remuneration such as superannuation and insurances.
The combination of these components comprises the executive’s total remuneration.
16.2.1 Base Salary
Executives are offered a competitive base salary that is reflective of current market conditions. Base salary for senior
executives is reviewed annually to ensure the executive’s remuneration is competitive with the market. An executive’s
base salary is also reviewed on promotion. There are no guaranteed base salary increases included in any senior executive
contracts.
16.2.2 Short Term Incentives
The Short Term Incentive (STI) Plan is designed to reward executives for the achievement of annual performance targets.
The STI Plan and the annual performance objectives under the STI Plan are reviewed annually by the Remuneration
Committee and approved by the Board. All awards to Key Management Personnel (KMP) are assessed and recommended
by the Remuneration Committee and approved by the Board.
For 2022, KMP other than the Managing Director, can earn up to 35% of Total Fixed Remuneration (TFR) under the STI
Plan whilst the Managing Director can earn up to 50% of TFR. Other Managers of the Group can earn up to 15-25% of TFR
under the Plan.
The annual performance targets are based on challenging goals with a mix of both Company performance and project
specific targets. Given its status as a pre-revenue exploration entity focused on the development of its key projects, the
Company does not consider that financial targets such as net profit are relevant measures for a STI program. The Group’s
key STI performance measures for the year ending 31 December 2022 are summarised below;
effective management of environmental conditions and safety performance;
community and land owner engagement in Brazil;
achievement of defined targets for the Jaguar Project with respect to exploration activity performance and
mineral Resource definition;
achievement of a number of capital projects;
achievement of a number of key deliverables in relation to the licensing, definitive feasibility study, offtake and
other development activities of the Jaguar Nickel Project;
achievement of value adding outcome for the Jambreiro Iron Ore project; and
market capitalisation growth targets.
Details of STI incentives awarded during the year are provided in Section 16.6.4.
16.2.3 Long Term Incentives
LTIs may be granted from time to time to reward performance in the realisation of strategic outcomes and long-term
growth in shareholder wealth. Options or performance rights may be utilised to deliver long term incentive awards. The
Board has discretion to grant options or performance rights for no consideration. Options or performance rights do not
carry voting or dividend entitlements. Information on share options granted during the year is set out in Section 16.6.
During the period, KMP were granted options with no exercise price which are subject to vesting conditions related to
achieving performance targets measured over a three-year period. The options were issued under the Company’s ESIP
and under ASX Listing Rule 10.11 for Executive Directors. KMP, other than the Managing Director, were issued with
options up to the value of 50% of TFR whilst the Managing Director was issued with options up to the value of 100% of
TFR.
Whilst the ESIP is approved by shareholders for a 3 year period, vesting conditions are set by the Board on an annual
basis in order to ensure responsiveness to changes in business circumstances.
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Financial Report – 31 December 2022
The 3 year Assessment Period for the 2 tranches of options issued under the LTIP in 2020 closed at the end of the reporting
period being 31 December 2022. The vesting condition for tranche 1 was based on Total Shareholder Return relative to
a peer group of companies determined by the Board and disclosed in the 2020 Annual Report while the vesting condition
for tranche 2 was expressed as entry into the ASX 300 index, which at the time was expressed to the recipients as
achieving a market capitalisation of at least $200 million.
During the reporting period, the exercise condition for tranche 2 was clarified by the Board to reflect the underlying
intention at the time of issue of the incentives that the Company achieve a market capitalisation of at least $200 million
and with this market capitalisation, the Company would be in the 300 largest companies with a primary listing of ordinary
shares on the ASX by market capitalisation. All other terms and conditions of the grant remained the same and there was
no increase in the value of the award.
The market capitalisation of the Company at the commencement of the Assessment Period on 1 January 2020 was
$45.5m and increased to $478.4m as at 31 December 2022, representing an increase of $433.9m or 952% and placing
the Company in the 300 largest companies with a primary listing of ordinary shares on the ASX by market capitalisation.
Following the close of the Assessment Period, the Board determined that the vesting conditions on the tranche 1 & 2
options had been met and as such the options vested with the KMP and are capable of being exercised.
The terms and conditions of the zero exercise priced options affecting remuneration during the reporting period are set
out below.
Grant Date
Executive Directors
23 March 2022
23 March 2022
19 February 2021
19 February 2021
29 May 2020
29 May 2020
Performance
Measurement
period
1 January 2022 to 31
December 2024
1 January 2022 to 31
December 2024
1 January 2021 to 31
December 2023
1 January 2021 to 31
December 2023
1 January 2020 to 31
December 2022
1 January 2020 to 31
December 2022
Expiry Date
Vesting Conditions
31 December 2025
31 December 2025
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board
50% based upon Absolute Total Shareholder Return.
31 December 2024
31 December 2024
31 December 2023
31 December 2023
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board.
50% based upon Absolute Total Shareholder Return.
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board.
50% based on achieving a market capitalisation at the close of
the Assessment Period that was greater than $200 million and
which places and the Company in the 300 largest companies
with a primary listing of ordinary shares on the ASX by market
capitalisation.
Executives
23 March 2022
23 March 2022
13 July 2021
13 July 2021
25 January 2021
25 January 2021
14 February 2020
14 February 2020
1 January 2022 to 31
December 2024
1 January 2022 to 31
December 2024
1 January 2021 to 31
December 2023
1 January 2021 to 31
December 2023
1 January 2021 to 31
December 2023
1 January 2021 to 31
December 2023
1 January 2020 to 31
December 2022
1 January 2020 to 31
December 2022
31 December 2025
31 December 2025
31 December 2024
31 December 2024
31 December 2024
31 December 2024
31 December 2023
31 December 2023
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board
50% based upon Absolute Total Shareholder Return.
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board.
50% based upon Absolute Total Shareholder Return.
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board.
50% based upon Absolute Total Shareholder Return.
50% of Options vest based on Total Shareholder Return relative
to a peer group of companies determined by the Board.
50% based on achieving a market capitalisation at the close of
the Assessment Period that was greater than $200 million and
which places and the Company in the 300 largest companies
with a primary listing of ordinary shares on the ASX by market
capitalisation.
Value per
Option at
grant date
$1.1485
$1.0496
$0.7833
$0.6756
$0.2482
$0.2013
$1.1485
$1.0496
$0.6900
$0.5774
$0.7188
$0.6212
$0.1582
$0.1174
Each milestone will be assessed at the end of the 3-year assessment period and the options will not vest or be capable of
being exercised until after this assessment period has closed, other than in the case of a successful change of control
transaction in which case the options will immediately vest.
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Financial Report – 31 December 2022
The Board considers that this feature of the LTIP provides an appropriate level of protection for KMP and is in alignment
with the interests of shareholders who are likely to benefit from a change in control transaction. Participants in the LTI
plan must remain in employment during the assessment period.
To achieve the relative Total Shareholder Return (TSR) performance measure, the Company must outperform, on a TSR
basis, at least 49.9% of the peer group established by the Board. The peer group for the LTI granted during the year ended
31 December 2022 is comprised of the following companies.
Adriatic Metals PLC
Blackstone Minerals Limited
Core Lithium Ltd
Emerald Resources NL
Lake Resources NL
Legend Mining Limited
Mincor Resources NL
Rumble Resources Limited
Sovereign Metals Limited
Stavely Minerals Limited
New Century Resources Limited
Syrah Resources Limited
Energy Transition Minerals Limited
OreCorp Limited
Talga Group Ltd
Galan Lithium Limited
Jervois Global Limited
Panoramic Resources Limited
Tietto Minerals Limited
Poseidon Nickel Limited
Develop Global Limited
The assessment of the relative TSR performance measure will be made at the end of the assessment period with vesting
to occur in accordance with the table below.
Percentile Ranking
compared to Peers
<50th Percentile
Amount of ZEPO to Vest
Zero
B/t 50th and 75th Percentile
Pro Rata B/t 50% and 100%
>75th percentile
100%
TSR is defined as the financial gain that results from a change in the Company’s share price plus any dividends paid by
the Company during the assessment period divided by the share price at the start of the assessment period.
The achievement of the absolute TSR performance measure will be made at the end of the assessment period, with
vesting to occur in accordance with the table below.
Threshold TSR Level over
Assessment Period
Amount of ZEPOs which will vest
and become exercisable
Less than 30%
B/t 30% and 40%
B/t 40% and 50%
50% or greater
Zero
50%
75%
100%
Vested options can be exercised any time between vesting and the expiry date.
16.2.4 Superannuation
In accordance with regulatory requirements, Directors and employees are permitted to nominate a superannuation fund
of their choice to receive superannuation contributions.
16.3 Employment Agreements
Remuneration and other terms of employment for executives are formalised in employment agreements which are
reviewed annually. The agreements provide for the provision of other benefits and participation, at the discretion of the
Board in short and long-term incentive plans (refer to sections 16.2.2 and 16.2.3).
Other major provisions of the current employment agreements, as at the date of this report, relating to remuneration
are set out below:
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Financial Report – 31 December 2022
Name
D P Gordon
W E Foote
J W Westdorp
B R Scarpelli
Salary Incl of
Superannuation
$533,000 pa
$425,000 pa
$390,000 pa
$372,000 pa
R J Fitzhardinge
$273,600 pa
Maximum STI
Potential
50%
40%
40%
45%
40%
Maximum LTI
Potential
Notice Period
Company
Notice Period
Employee
100%
12 months
60%
60%
70%
60%
3 months
6 months
2 months
2 months
6 months
3 months
2 months
2 months
2 months
Redundancy
12 months
6 months
6 months
6 months
6 months
16.4 Non-Executive Directors
Fees and payments to Non-Executive directors reflect the demands which are made on, and the responsibilities of, the
directors. Non-Executive directors’ fees and payments are reviewed at least annually by the Board. The Chair’s fees are
determined independently to the fees of Non-Executive directors based on comparative roles in the external market and
prevailing market conditions. The advice of independent remuneration consultants is sought on an annual basis.
Non-Executive directors’ remuneration consists of set fee amounts. The current level of fees, applicable from 1 January
2023, for Non-Executive directors is $77,000 per annum. The Non-Executive Chair’s fees are $115,000 per annum.
Directors do not receive additional committee fees. Non-Executive directors’ fees are subject to an aggregate pool limit,
which is periodically recommended for approval by shareholders. The approved pool limit is currently $400,000. There is
no provision for retirement allowances for Non-Executive directors.
Non-Executive Directors may be granted options from time to time to provide a meaningful additional incentive for their
ongoing commitment and dedication to the continued growth of the Group and to assist the Company in attracting and
retaining the highest calibre of Non-Executive Director, whilst maintaining the Group’s cash reserves. There were no
options granted or issued to Non-Executive Directors in the current period, with the cost reported relating to prior period
issues which are progressively vesting. Refer to Section 16.6 for options issued during prior periods. Prior to issuing
incentives the Board considers whether the issue is reasonable in the circumstances.
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46
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
47
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
16.6 Equity Instruments
Options may be granted under the ESIP which was approved by shareholders at the 2022 Annual General Meeting.
Eligibility to participate in the ESIP (including participation by Executive and Non-Executive directors) is determined by
the Board in its absolute discretion. The vesting and exercise conditions of options granted are also determined by the
Board in its absolute discretion. Employees must remain in employment during the vesting period. Options may also be
granted by the Company outside of the ESIP, but under similar terms and conditions.
The Group has a policy that prohibits directors and employees who are granted share options as part of their
remuneration from entering into arrangements that limit their exposure to losses that would result from share price
decreases.
16.6.1 Analysis of Options over Equity Instruments Granted as Compensation
Details of vesting profiles of the options granted as remuneration both during the current and prior years to KMP of the
Group are detailed below. There were no options forfeited during the year. A total of 3,750,002 options previously
granted as compensation with a weighted average exercise price of $0.28 were exercised in 2022 raising $1,052,700.
Directors
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Number of
Options
Issued
600,000
600,000
841,479
841,479
235,307
235,307
223,030
223,029
339,992
339,991
97,234
97,234
77,670
77,669
400,000
400,000
116,667
233,334
400,000
400,000
400,000
Grant Date
Expiry Date
Exercise Price
Fair value per
option at grant
date
29/05/20
29/05/20
31/05/23
31/05/24
29/05/20
29/05/20
19/02/21
19/02/21
23/03/22
23/03/22
29/05/20
29/05/20
19/02/21
19/02/21
23/03/22
23/03/22
31/12/23
31/12/23
31/12/24
31/12/24
31/12/25
31/12/25
31/12/23
31/12/23
31/12/24
31/12/24
31/12/25
31/12/25
29/05/20
29/05/20
31/05/23
31/05/24
31/05/19
31/05/19
29/05/20
29/05/20
29/05/20
31/05/23
31/05/24
31/05/22
31/05/23
31/05/24
$0.392
$0.405
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.392
$0.405
$0.180
$0.180
$0.378
$0.392
$0.405
$0.1461
$0.1667
$0.2482
$0.2013
$0.7833
$0.6756
$1.1485
$1.0496
$0.2482
$0.2013
$0.7833
$0.6756
$1.1485
$1.0496
$0.1461
$0.1667
$0.0868
$0.0952
$0.1189
$0.1461
$0.1667
Dr N Streltsova
-
-
-
-
-
Executives
Mr R J Fitzhardinge
Mr J W Westdorp
Mr W E Foote
369,741
369,741
98,675
98,675
73,117
73,117
424,990
424,989
113,440
113,440
80,475
80,475
97,955
97,955
85,993
85,993
14/02/20
14/02/20
25/01/21
25/01/21
25/03/22
25/03/22
14/02/20
14/02/20
25/01/21
25/01/21
23/03/22
23/03/22
13/07/21
13/07/21
23/03/22
23/03/22
31/12/23
31/12/23
31/12/24
31/12/24
31/12/25
31/12/25
31/12/23
31/12/23
31/12/24
31/12/24
31/12/25
31/12/25
31/12/24
31/12/24
31/12/25
31/12/25
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.1582
$0.1174
$0.7188
$0.6212
$1.1485
$1.0496
$0.1582
$0.1174
$0.7188
$0.6212
$1.1485
$1.0496
$0.6900
$0.5774
$1.1485
$1.0496
% Vest in
Year
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
100%
-
-
-
-
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Financial Year
in Which Grant
Vests/Vested (1)
2022
2023
2023(2)
2023(3)
2024(4)
2024(5)
2025(6)
2025(7)
2023(2)
2023(3)
2024(4)
2024(5)
2025(6)
2025(7)
2022
2023
2020
2021
2021
2022
2023
-
2023(2)
2023(3)
2024(4)
2024(5)
2025(6)
2025(7)
2023(2)
2023(3)
2024(4)
2024(5)
2025(6)
2025(7)
2024(4)
2024(5)
2025(6)
2025(7)
Page 20 of 55
48
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
49
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
(1) Options are subject to the satisfaction of service conditions. Options will vest subject to achievement of the vesting conditions which will be
assessed in the year following the measurement period.
(2)
Refer to section 16.2.3 for further details. Options will vest subject to achieving a market capitalisation, at the end of the assessment period, of
greater than $200 million and which places the Company in the 300 largest companies with a primary listing of ordinary shares on the ASX by
market capitalisation and to meeting a three-year service condition to 31 December 2022.
(3) Options will vest subject to the achievement of the relative TSR measure detailed in the 2020 Annual Report and to meeting a three year service
condition to 31 December 2022.
(4) Options will vest subject to the achievement of the absolute TSR measure detailed in Section 16.2.3 and to meeting a three year service condition
to 31 December 2023.
(5) Options will vest subject to the achievement of the relative TSR measure detailed in Section 16.2.3 and to meeting a three year service condition
to 31 December 2023.
(6) Options will vest subject to the achievement of the absolute TSR measure detailed in Section 16.2.3 and to meeting a three year service condition
to 31 December 2024.
(7) Options will vest subject to the achievement of the relative TSR measure detailed in Section 16.2.3 and to meeting a three year service condition
to 31 December 2024.
16.6.2 Options Over Equity Instruments Granted as Compensation
The movement during the reporting period, by number of options over ordinary shares in Centaurus Metals Limited held,
directly, indirectly and beneficially, by each KMP, including their related parties, is as follows:
Held 1
January 2022
Exercised
Granted
2,133,334
(933,334)
-
2,820,239
(666,667)
1,374,451
(500,000)
1,433,334
(633,334)
1,666,668
(516,667)
-
-
446,059
155,339
-
-
-
146,234
160,949
171,986
Held 31
December
2022
Vested
During the
Period
Vested and
Exercisable
31 December
2022
1,200,000
2,599,631
1,029,790
800,000
1,150,001
-
1,083,066
1,237,808
367,896
-
-
-
-
-
-
-
-
-
-
-
-
-
350,001
-
-
-
-
Mr R J Fitzhardinge
1,436,832
(500,000)
Mr J W Westdorp
Mr W E Foote
1,076,859
195,910
-
-
Directors
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Dr N Streltsova
Executives
48
ANNUAL REPORT CENTAURUS METALS LIMITED
Page 21 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
49
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
16.6.3 Analysis of Movements in Options
The movement during the reporting period, by value, of options over ordinary shares in the Company held by each
director, key management person and each of the Company executives and relevant Group executives is detailed below:
Director
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
Dr N Streltsova
Executives
Mr R J Fitzhardinge
Mr J W Westdorp
Mr W E Foote
Value of
Options
Granted $(1)
Value of
Options
Exercised in
Year $(2)
Value of
Options
Lapsed in
Year $(3)
-
490,241
170,725
-
-
-
160,718
176,891
189,021
780,867
623,334
467,500
530,967
427,134
-
467,500
-
-
-
-
-
-
-
-
-
-
-
(1) The value of options granted in the year is the fair value of the options calculated at grant date using either a Black Scholes option-pricing model
or a Monte Carlo option pricing model. The total value of the options granted is included in the table above. This amount is allocated to
remuneration over the vesting period.
(2) The value of options exercised during the year is calculated as the market price of shares of the Company as at close of trading on the date the
options were exercised after deducting the price paid to exercise the option.
(3) The value of unvested options that lapsed during the year represents the benefit forgone and is calculated at the date the options lapsed using
the Black Scholes option-pricing model assuming the performance criteria had been achieved. To the extent that the options are out of the money
upon lapsing, the value is nil.
16.6.4 Performance Based Remuneration Granted and Forfeited During the Year
During the year, the Board determined to pay STIs to executives in recognition of the achievement of performance targets
for the year ended 31 December 2022. There were no increases in the target STI quantum during the period. A summary
of STIs for the period is shown below.
Executive
Mr D P Gordon
Mr B S Scarpelli
Mr W E Foote(1)
Mr J W Westdorp
Mr R J Fitzhardinge
Target STI
Quantum (% of
Base Salary)
Target FY22 STI
Quantum $
50%
35%
30%
30%
30%
242,500
118,230
112,000
105,000
76,320
STI Quantum
Earned $
162,475
79,214
75,174
70,350
51,134
STI Quantum
Forfeited $
80,025
39,016
36,826
34,650
25,186
(1) 20% in 2021 due to engagement during the period.
16.6.5 Key Management Personnel Transactions
(a)
Loans to Key Management Personnel and Their Related Parties
No loans have been made to directors or other key management personnel of Centaurus Metals Limited or the Group.
(b)
Key Management Personnel and Director Transactions
Key Management Personnel, or their related parties, hold positions in other entities that result in them having control or
significant influence over the financial or operating policies of these entities.
One of these entities transacted with the Group in the reporting period. The terms and conditions of the transactions
with key management personnel and their related parties were no more favourable than those available, or which might
reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an
arm’s length basis.
Page 22 of 55
50
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
51
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over
which they have control or significant influence were as follows:
Key Management Person
Mr D M Murcia (1)
Total and current liabilities
Transaction
Legal fees
Transaction Value
2022
$
21,578
2021
$
8,156
Balance Outstanding as at
31 Dec 2022
$
31 Dec 2021
$
6,015
6,015
-
-
(1)
Payable to MPH Lawyers, a firm in which Mr Murcia is a partner.
16.6.6 Shareholdings of Key Management Personnel
The movement during the reporting period of ordinary shares in Centaurus Metals Limited held, directly, indirectly and
beneficially, by each KMP, including their related parties, is as follows:
Directors
Mr D M Murcia
Mr D P Gordon
Mr B R Scarpelli
Mr M D Hancock
Mr C A Banasik
D N Streltsova
Executives
Mr R J Fitzhardinge
Mr J W Westdorp
Mr W E Foote
Held 1 January
2022
Received on
exercise of
options
Other Changes (1)
Held at 31
December
2022
1,338,633
6,118,879
666,667
728,920
583,334
-
6,250,724
126,800
-
933,334
666,667
500,000
633,334
516,667
-
(500,000)
(450,000)
-
(250,000)
(150,000)
85,000
500,000
(600,000)
-
-
-
-
1,771,967
6,335,546
1,166,667
1,112,254
950,001
85,000
6,150,724
126,800
-
(1) Represents shares sold with the exception of D N Streltsova which comprises balance on appointment.
All equity transactions with Key Management Personnel other than those arising from the exercise of remuneration
options have been entered into under terms and conditions no more favourable than those the Group would have
adopted if dealing at arms-length.
This report is signed in accordance with a resolution of the directors.
D P Gordon
Managing Director
Perth
30 March 2023
50
ANNUAL REPORT CENTAURUS METALS LIMITED
Page 23 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
51
CENTAURUS METALS ANNUAL REPORT 2022
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Centaurus Metals Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Centaurus Metals
Limited for the financial year ended 31 December 2022 there have been:
i.
no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Graham Hogg
Partner
Perth
30 March 2023
52
ANNUAL REPORT CENTAURUS METALS LIMITED
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
CENTAURUS METALS LIMITED ANNUAL REPORT
53
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2022
Profit or Loss
Other income
Exploration expenditure
Impairment of other receivables
Employee benefits expense
Share based payments expense
Listing and share registry fees
Professional fees
Depreciation
Other expenses
Results from operating activities
Interest income
Finance expense
Net finance income
Loss before income tax
Loss for the period
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign
operations
Other comprehensive loss for the period
Total comprehensive loss for the period
31 December
2022
$
31 December
2021
$
Note 7
534,900
265,862
Note 15
Note 8
Note 9
Note 20
(36,225,206)
(2,359,170)
(2,497,517)
(1,143,562)
(153,333)
(604,165)
(362,832)
(1,131,348)
(43,942,233)
1,348,066
(33,388)
1,314,678
(13,198,599)
(707,729)
(1,840,182)
(781,107)
(121,082)
(321,052)
(131,342)
(386,790)
(17,222,021)
235,207
(7,901)
227,306
(42,627,555)
(42,627,555)
(16,994,715)
(16,994,715)
1,149,970
(13,896)
1,149,970
(41,477,585)
(13,896)
(17,008,611)
Earnings per Share
Basic loss per share
Diluted loss per share
Note 12
Note 12
cents
(10.14)
(10.14)
cents
(5.04)
(5.04)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying Notes.
52
ANNUAL REPORT CENTAURUS METALS LIMITED
Page 25 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
53
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Consolidated Statement of Financial Position
As at 31 December 2022
Current assets
Cash and cash equivalents
Other receivables and prepayments
Inventories
Total current assets
Non-current assets
Other receivables and prepayments
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Financial liability
Lease liability
Employee benefits – annual leave
Total current liabilities
Non-current liabilities
Financial liability
Lease liability
Employee benefits – long service leave
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
Note 13
Note 15
Note 15
Note 16
Note 17
Note 18
Note 19
Note 20
Note 19
Note 20
31 December
2022
$
31 December
2021
$
34,047,722
1,329,338
58,152
35,435,212
49,209
8,903,956
13,006,304
21,959,469
57,394,681
4,589,016
1,432,088
540,419
552,779
7,114,302
183,926
488,512
279,242
951,680
8,065,982
49,328,699
8,259,389
529,725
-
8,789,114
8,156
6,004,233
12,048,261
18,060,650
26,849,764
2,893,287
5,161,448
86,576
379,516
8,520,827
1,325,267
29,334
223,690
1,578,291
10,099,118
16,750,646
236,289,294
(5,819,170)
(181,141,425)
49,328,699
162,962,306
(7,697,790)
(138,513,870)
16,750,646
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes.
54
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
55
Page 26 of 55
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Consolidated Statement of Financial Position
As at 31 December 2022
Current assets
Cash and cash equivalents
Other receivables and prepayments
Inventories
Total current assets
Non-current assets
Other receivables and prepayments
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Financial liability
Lease liability
Employee benefits – annual leave
Total current liabilities
Non-current liabilities
Financial liability
Lease liability
Employee benefits – long service leave
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
Note 13
Note 15
Note 15
Note 16
Note 17
Note 18
Note 19
Note 20
Note 19
Note 20
31 December
31 December
2022
$
34,047,722
1,329,338
58,152
35,435,212
49,209
8,903,956
13,006,304
21,959,469
57,394,681
4,589,016
1,432,088
540,419
552,779
7,114,302
183,926
488,512
279,242
951,680
8,065,982
49,328,699
2021
$
8,259,389
529,725
-
8,789,114
8,156
6,004,233
12,048,261
18,060,650
26,849,764
2,893,287
5,161,448
86,576
379,516
8,520,827
1,325,267
29,334
223,690
1,578,291
10,099,118
16,750,646
236,289,294
(5,819,170)
(181,141,425)
49,328,699
162,962,306
(7,697,790)
(138,513,870)
16,750,646
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes.
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54
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
55
Page 26 of 55
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
31 December
2022
$
31 December
2021
$
Note
Cash flows from operating activities
Exploration and evaluation expenditure
Payments to suppliers and employees (inclusive of GST)
Other receipts
Interest received
Net cash used in operating activities
Note 14
(37,758,214)
(3,783,579)
265,862
1,303,051
(39,972,880)
(12,898,881)
(2,560,610)
-
240,659
(15,218,832)
Cash flows from investing activities
Payments for property plant & equipment
Payment for exploration acquisitions
Buy back of project royalty
Proceeds from sale of property plant & equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of equity securities
Proceeds from the exercise of options
Capital raising costs
Payment of lease liability
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at 31 December
Note 13
(3,507,396)
(2,367,239)
(1,000,000)
20,249
(6,854,386)
75,000,000
1,052,700
(3,329,802)
(252,215)
72,470,683
25,643,417
8,259,389
144,916
34,047,722
(3,323,381)
(1,485,458)
(1,000,000)
-
(5,808,839)
-
5,462,629
(2,795)
(109,991)
5,349,843
(15,677,828)
24,089,281
(152,064)
8,259,389
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes.
56
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CENTAURUS METALS LIMITED ANNUAL REPORT
57
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Notes to the Consolidated Financial Statements
For the year ended 31 December 2022
Note 1.
Reporting Entity
Centaurus Metals Limited (“the Company”) is a company domiciled in Australia. The Company’s registered office is at
Level 2, 1 Ord Street, West Perth WA 6005. The consolidated financial statements of the Company as at and for the year
ended 31 December 2022 comprise the Company and its subsidiaries (collectively the “Group” and individually “Group
entities”). The Group is a for-profit entity and is primarily involved in exploration for and evaluation of mineral resources.
Note 2.
Basis of Preparation
Statement of Compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (AASBs) (including Australian Accounting Interpretations) adopted by the
Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements
comply with International Financial Reporting Standards (IFRS’s) adopted by the International Accounting Standards
Board (IASB).
The consolidated financial statements were authorised for issue by the Board of Directors on 30 March 2023.
Basis of Measurement
The consolidated financial statements have been prepared on the historical cost basis, except for share based payments
which are measured at fair value in the statement of financial position.
Going Concern
The financial statements for the year ended 31 December 2022 have been prepared on a going concern basis, which
contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the
ordinary course of business.
During the year, the Group incurred a loss after tax of $42,627,555 with net cash inflows of $25,643,417. The Group has
a working capital surplus of $28,320,910.
While the Group had cash on hand of $34,047,722 as at 31 December 2022, the Group is likely to need additional working
capital in order to meet the Group’s stated strategic objectives. Whilst there is no certainty that additional funding will
be available to provide adequate working capital for the Group to achieve its planned objectives, the Directors believe
that the Group will be able to secure funding sufficient to meet requirements to continue as a going concern based on
the Company’s historical success of raising capital. The form, value and timing of any future transactions that may provide
funding is yet to be determined and will depend amongst other things, on capital markets, commodity prices and the
outcome of planned exploration and evaluation activities.
The Directors have a reasonable expectation that further funding will be obtained to meet the Group’s objectives. In
addition, the Directors have considered the minimum expenditure requirements necessary in order to maintain
tenements in good standing and to meet committed expenditures for the 12 month period from the date of this report
and consider the going concern basis of preparation to be appropriate. In undertaking this analysis, the Directors have
considered which expenditure can be reduced if necessary.
Note 3.
Functional and Presentation Currency
These consolidated financial statements are presented in Australian Dollars, which is the Company’s functional currency.
The functional currency of the Brazilian subsidiaries is the Brazilian Real.
Note 4.
Use of Judgements and Estimates
In preparing these consolidated financial statements, management has made judgements, estimates and assumptions
that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
56
ANNUAL REPORT CENTAURUS METALS LIMITED
Page 29 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
57
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the amounts
recognised in the consolidated financial statements is included below and also in the following notes:
Note 15 - Other Receivables and Prepayments; and
Note 17 - Exploration and Evaluation Assets. The application of the Group’s accounting policy for exploration and
evaluation expenditure requires judgement to determine whether future economic benefits are likely, from
either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable
assessment of the existence of reserves.
Assumptions and Estimation Uncertainties
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities in the year ending 31 December 2022 is included in Note 17
– Exploration and Evaluation Assets. In addition to applying judgement to determine whether future economic benefits
are likely to arise from the Group’s Exploration and Evaluation assets or whether activities have not reached a stage that
permits a reasonable assessment of the existence of Reserves, the Group has to apply a number of estimates and
assumptions.
The Group is required to make estimates and assumptions as to future events and circumstances, in particular, whether
successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be
achieved. Critical to this assessment are estimates and assumptions as to Ore Reserves, the timing of expected cash flows,
exchange rates, commodity prices and future capital requirements. Changes in these estimates and assumptions as new
information about the recoverability of Ore Reserves becomes available, may impact the assessment of the recoverable
amount of exploration and evaluation assets. If, after the expenditure is capitalised, information becomes available
suggesting that the recovery of expenditure is unlikely, the relevant capitalised amount is written off to profit or loss in
the period when that information becomes available.
Measurement of Fair Values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.
Fair values have been determined for measurement and/or disclosure purposes based on the methods described below.
When applicable, further information about the assumptions made in determining fair values is disclosed in the notes
specific to that asset or liability.
(a)
Trade and Other Receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the
market rate of interest at the reporting date.
(b)
Share-based Payment Transactions
The fair value of employee share options is estimated using the applicable valuation methodology. Measurement inputs
include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted
average historic volatility adjusted for changes expected due to publicly available information), weighted average
expected life of the instruments (based on historical experience and general option holder behaviour), expected
dividends, and the risk-free interest rate (based on government bonds). Service and performance conditions attached to
vesting are not taken into account in determining fair value. Where the service period commences prior to grant date
the fair value is provisionally calculated and subsequently revised upon grant date.
Note 5.
Significant Accounting Policies
The Group has consistently applied the following accounting policies to all periods presented in these consolidated
financial statements.
Basis of Consolidation
(a)
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the date that control ceases.
Page 30 of 55
58
ANNUAL REPORT CENTAURUS METALS LIMITED
The accounting policies of subsidiaries have been changed when necessary to align them with policies adopted by the
Inter-Group balances and transactions and any unrealised income and expenses arising from intra-Group transactions,
are eliminated in preparing the consolidated financial statements.
Financial Report – 31 December 2022
Group.
(b)
Transactions Eliminated on Consolidation
Foreign Currency
(a)
Foreign Currency Transactions
rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the
foreign exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference
between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and
payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the
period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the
retranslation of financial instruments, a financial liability designated as a hedge of the net investment in a foreign
operation, or qualifying cash flow hedges, which are recognised in other comprehensive income. Non-monetary items
that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of
the transaction.
(b)
Foreign Operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to Australian dollars at exchange rates at reporting date. The income and expenses of foreign operations are
translated to Australian dollars at average exchange rates for the period.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency
translation reserve (FCTR) within equity.
as part of the profit or loss on disposal.
When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely
in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form
part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented
within equity in the FCTR.
Comparative Revisions
financial year.
Financial Instruments
Where necessary comparative figures have been adjusted to conform with changes in presentation in the current
The Group classifies non-derivative financial assets into the following categories at fair value through profit and loss, at
fair value through other comprehensive income and measured at amortised cost.
The Group classifies non-derivative financial liabilities into the other financial liabilities category.
(a)
Non- derivative Financial Assets and Financial Liabilities – Recognition and Derecognition
The Group initially recognises loans, receivables and deposits on the date when they are originated. All other financial
assets and financial liabilities are recognised initially on the trade date.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially
all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such
derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Page 31 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
59
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the amounts
recognised in the consolidated financial statements is included below and also in the following notes:
Note 15 - Other Receivables and Prepayments; and
Note 17 - Exploration and Evaluation Assets. The application of the Group’s accounting policy for exploration and
evaluation expenditure requires judgement to determine whether future economic benefits are likely, from
either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable
assessment of the existence of reserves.
Assumptions and Estimation Uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities in the year ending 31 December 2022 is included in Note 17
– Exploration and Evaluation Assets. In addition to applying judgement to determine whether future economic benefits
are likely to arise from the Group’s Exploration and Evaluation assets or whether activities have not reached a stage that
permits a reasonable assessment of the existence of Reserves, the Group has to apply a number of estimates and
assumptions.
The Group is required to make estimates and assumptions as to future events and circumstances, in particular, whether
successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be
achieved. Critical to this assessment are estimates and assumptions as to Ore Reserves, the timing of expected cash flows,
exchange rates, commodity prices and future capital requirements. Changes in these estimates and assumptions as new
information about the recoverability of Ore Reserves becomes available, may impact the assessment of the recoverable
amount of exploration and evaluation assets. If, after the expenditure is capitalised, information becomes available
suggesting that the recovery of expenditure is unlikely, the relevant capitalised amount is written off to profit or loss in
the period when that information becomes available.
Measurement of Fair Values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.
Fair values have been determined for measurement and/or disclosure purposes based on the methods described below.
When applicable, further information about the assumptions made in determining fair values is disclosed in the notes
specific to that asset or liability.
(a)
Trade and Other Receivables
market rate of interest at the reporting date.
(b)
Share-based Payment Transactions
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the
The fair value of employee share options is estimated using the applicable valuation methodology. Measurement inputs
include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted
average historic volatility adjusted for changes expected due to publicly available information), weighted average
expected life of the instruments (based on historical experience and general option holder behaviour), expected
dividends, and the risk-free interest rate (based on government bonds). Service and performance conditions attached to
vesting are not taken into account in determining fair value. Where the service period commences prior to grant date
the fair value is provisionally calculated and subsequently revised upon grant date.
Note 5.
Significant Accounting Policies
The Group has consistently applied the following accounting policies to all periods presented in these consolidated
financial statements.
Basis of Consolidation
(a)
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the date that control ceases.
Page 30 of 55
58
ANNUAL REPORT CENTAURUS METALS LIMITED
Financial Report – 31 December 2022
The accounting policies of subsidiaries have been changed when necessary to align them with policies adopted by the
Group.
(b)
Transactions Eliminated on Consolidation
Inter-Group balances and transactions and any unrealised income and expenses arising from intra-Group transactions,
are eliminated in preparing the consolidated financial statements.
Foreign Currency
(a)
Foreign Currency Transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange
rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the
foreign exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference
between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and
payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the
period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the
retranslation of financial instruments, a financial liability designated as a hedge of the net investment in a foreign
operation, or qualifying cash flow hedges, which are recognised in other comprehensive income. Non-monetary items
that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of
the transaction.
(b)
Foreign Operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to Australian dollars at exchange rates at reporting date. The income and expenses of foreign operations are
translated to Australian dollars at average exchange rates for the period.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency
translation reserve (FCTR) within equity.
When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss
as part of the profit or loss on disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely
in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form
part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented
within equity in the FCTR.
Comparative Revisions
Where necessary comparative figures have been adjusted to conform with changes in presentation in the current
financial year.
Financial Instruments
The Group classifies non-derivative financial assets into the following categories at fair value through profit and loss, at
fair value through other comprehensive income and measured at amortised cost.
The Group classifies non-derivative financial liabilities into the other financial liabilities category.
(a)
Non- derivative Financial Assets and Financial Liabilities – Recognition and Derecognition
The Group initially recognises loans, receivables and deposits on the date when they are originated. All other financial
assets and financial liabilities are recognised initially on the trade date.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially
all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such
derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Page 31 of 55
CENTAURUS METALS LIMITED ANNUAL REPORT
59
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when and
only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the
asset and settle the liability simultaneously.
The Group has the following non-derivative financial assets: receivables and cash and cash equivalents.
(i)
Receivables
Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets
are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition,
receivables are measured at amortised cost using the effective interest method, less any impairment losses.
(ii)
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
(b)
Non derivative Financial Liabilities – Measurement
Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs.
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
(c)
Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares or share
options are recognised as a deduction from equity, net of any tax effect.
Property, Plant and Equipment
(a)
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
Any gains or loss on disposal of an item of property, plant and equipment are recognised in profit or loss. When revalued
assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.
(b)
Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual
values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land
is not depreciated.
The estimated useful lives of property, plant and equipment are 3 to 15 years.
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if
appropriate.
Exploration and Evaluation Expenditure
Exploration and evaluation costs are expensed in the year they are incurred. Acquisition costs are carried forward where
right of tenure of the area of interest is current and they are expected to be recouped through sale or successful
development and exploitation of the area of interest, or, where exploration and evaluation activities in the area of
interest have not reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
Where an area of interest is abandoned, or the directors decide that it is not commercial, any accumulated acquisition
costs in respect of that area are written off in the financial period in which the decision is made. Each area of interest is
also reviewed at the end of each accounting period and accumulated costs written off to the extent that they will not be
recoverable in the future.
Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until
production commences.
Exploration and evaluation assets are transferred to Development Assets once technical feasibility and commercial
viability of an area of interest is demonstrable. Exploration and evaluation assets are assessed for impairment and any
impairment loss is recognised prior to being reclassified.
Financial Report – 31 December 2022
The carrying amount of the exploration and evaluation assets is dependent on successful development and commercial
exploitation, or alternatively, sale of the respective area of interest.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility
and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
The term of exploration license in the specific area of interest has expired during the reporting period or will
expire in the near future and is not expected to be renewed;
Substantive expenditures on further exploration for and evaluation of mineral resources in the specific area are
Exploration for and evaluation of mineral resources in the specific area has not led to the discovery of
commercially viable quantities of mineral resources and the decision was made to discontinue such activities in
Sufficient data exists to indicate that although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development
not budgeted nor planned;
the specified area; or
or by sale.
Where a potential impairment is indicated, an assessment is performed for each cash-generating unit which is no larger
than the area of interest. The Group performs impairment testing in accordance with the Accounting Policy as detailed
below.
Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
recognised by the Group is initially measured at cost, comprised of the initial measurement of the related lease liability,
any lease payments made at or before the commencement of the contract, less any lease incentives received, any initial
direct costs and any restoration costs. Subsequently the asset is measured at cost less any accumulated depreciation and
impairment losses and adjusted for certain re-measurements of the lease liability. Right-of-use assets are depreciated
over the shorter period of either the useful life of the underlying asset or the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined the lessee’s incremental
borrowing rate is used, being the rate the lessee would have to pay to borrow funds necessary to obtain an asset of
similar value in a similar economic environment with similar terms and conditions.
The lease liability is subsequently increased by the interest costs on the lease liability and decreased by lease payments
made. It is re-measured where there is a change in future lease payments arising from a change in an index rate, or as
appropriate, changes in the assessment of whether an extension option is reasonably certain to be exercised.
The Group applies the low-value assets and the short-term lease exemptions to leases. Lease payments on short term
leases and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term.
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying
amount based on their relative fair values. No deferred tax is recognised in relation to the acquired assets and assumed
liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on the
acquisition of the net assets and transaction costs relating to the asset acquisition will be included in the capitalised cost
Any contingent consideration arising from the acquisition will be recognised at fair value at the acquisition date.
Contingent consideration classified as a liability that is a financial instrument and within the scope of AASB 9 is measured
at fair value, with changes in fair value recognised in profit or loss in the statement of profit or loss and other
comprehensive income in accordance with AASB 9.
Asset Acquisition
of the asset.
Inventory
Inventory comprises of diesel and is recognised and valued at the lower of cost or net realisable value (“NRV”). NRV is
the estimated future selling price, less the estimated costs necessary to make the sale. Cost represents weighted average
cost of the diesel on hand.
60
ANNUAL REPORT CENTAURUS METALS LIMITED
CENTAURUS METALS LIMITED ANNUAL REPORT
61
Page 32 of 55
Page 33 of 55
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
The carrying amount of the exploration and evaluation assets is dependent on successful development and commercial
exploitation, or alternatively, sale of the respective area of interest.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility
and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
The term of exploration license in the specific area of interest has expired during the reporting period or will
expire in the near future and is not expected to be renewed;
Substantive expenditures on further exploration for and evaluation of mineral resources in the specific area are
not budgeted nor planned;
Exploration for and evaluation of mineral resources in the specific area has not led to the discovery of
commercially viable quantities of mineral resources and the decision was made to discontinue such activities in
the specified area; or
Sufficient data exists to indicate that although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development
or by sale.
Where a potential impairment is indicated, an assessment is performed for each cash-generating unit which is no larger
than the area of interest. The Group performs impairment testing in accordance with the Accounting Policy as detailed
below.
Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
recognised by the Group is initially measured at cost, comprised of the initial measurement of the related lease liability,
any lease payments made at or before the commencement of the contract, less any lease incentives received, any initial
direct costs and any restoration costs. Subsequently the asset is measured at cost less any accumulated depreciation and
impairment losses and adjusted for certain re-measurements of the lease liability. Right-of-use assets are depreciated
over the shorter period of either the useful life of the underlying asset or the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined the lessee’s incremental
borrowing rate is used, being the rate the lessee would have to pay to borrow funds necessary to obtain an asset of
similar value in a similar economic environment with similar terms and conditions.
The lease liability is subsequently increased by the interest costs on the lease liability and decreased by lease payments
made. It is re-measured where there is a change in future lease payments arising from a change in an index rate, or as
appropriate, changes in the assessment of whether an extension option is reasonably certain to be exercised.
The Group applies the low-value assets and the short-term lease exemptions to leases. Lease payments on short term
leases and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term.
Asset Acquisition
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying
amount based on their relative fair values. No deferred tax is recognised in relation to the acquired assets and assumed
liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on the
acquisition of the net assets and transaction costs relating to the asset acquisition will be included in the capitalised cost
of the asset.
Any contingent consideration arising from the acquisition will be recognised at fair value at the acquisition date.
Contingent consideration classified as a liability that is a financial instrument and within the scope of AASB 9 is measured
at fair value, with changes in fair value recognised in profit or loss in the statement of profit or loss and other
comprehensive income in accordance with AASB 9.
Inventory
Inventory comprises of diesel and is recognised and valued at the lower of cost or net realisable value (“NRV”). NRV is
the estimated future selling price, less the estimated costs necessary to make the sale. Cost represents weighted average
cost of the diesel on hand.
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Financial Report – 31 December 2022
Impairment
(a)
Non-derivative Financial Assets
A loss allowance for expected credit loss (ECL) is recognised on financial assets measured at amortised cost.
The loss allowances are measured at an amount equal to lifetime ECLs, except for, bank balances which are measured at
12-month ECLs, for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument)
has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s
historical experience and informed credit assessment and including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Group considers a financial asset to be in default when the financial asset is more than 90 days past due.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-
month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the
reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is
exposed to credit risk.
(i)
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls. ECLs are discounted at the effective interest rate of the financial asset.
(ii)
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised costs are credit-impaired. A
financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash
flows of the financial asset have occurred.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised costs are deducted from the gross carrying amount of the
assets.
(iii)
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof.
(b)
Non-financial Assets
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For
the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group
of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets
or groups of assets. The group of assets is referred to as the Cash Generating Unit or CGU.
The Group’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may
be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to
reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other
assets in the unit (group of units) on a pro rata basis.
Financial Report – 31 December 2022
In respect of assets, other than goodwill, impairment losses recognised in prior periods are assessed at each reporting
date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
Employee Benefits
(a)
Defined Contribution Plans
services are rendered by employees.
(b)
Other Long-term Employee Benefits
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to
defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees
have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted
to determine its present value, and the fair value of any related assets is deducted.
(c)
Short-term Benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
(d)
Share-based Payment Transactions
The fair value of share-based payment awards granted to employees is recognised as an expense at grant date with a
corresponding increase in equity, over the period that employees become entitled to the awards. The amount recognised
as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions
are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards
that meet the related service and non-market performance conditions at the vesting date. For share-based payment
awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
Share-based payment arrangements in which the Group receives goods or services as consideration for its own equity
instruments are accounted for as equity-settled share-based payment transactions, regardless of how the equity
instruments are obtained by the Group.
When the Company grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised
as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting period of the
grant.
Provisions
as a finance cost.
Revenue
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised
Revenue is recognised when the goods are delivered and have been accepted by customers at their premises. For
contracts that permit the customer to return an item, revenue is recognised to the extent that it is highly probably that
a significant reversal in the amount of cumulative revenue recognised will not occur.
Therefore, the amount of revenue recognised is adjusted for expected returns, which are estimated based on the
historical data. In these circumstances, a refund liability and a right to recover returned goods asset are recognised.
Finance Income and Finance Costs
Finance income comprises interest income on funds invested, dividend income, gains on the disposal of debt securities
measured at fair value through other comprehensive income, changes in the fair value of financial assets at fair value
through profit and loss, and gains on hedging instruments that are recognised in profit or loss. Interest income is
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
In respect of assets, other than goodwill, impairment losses recognised in prior periods are assessed at each reporting
date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
Employee Benefits
(a)
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to
defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which
services are rendered by employees.
(b)
Other Long-term Employee Benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees
have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted
to determine its present value, and the fair value of any related assets is deducted.
(c)
Short-term Benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
(d)
Share-based Payment Transactions
The fair value of share-based payment awards granted to employees is recognised as an expense at grant date with a
corresponding increase in equity, over the period that employees become entitled to the awards. The amount recognised
as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions
are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards
that meet the related service and non-market performance conditions at the vesting date. For share-based payment
awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
Share-based payment arrangements in which the Group receives goods or services as consideration for its own equity
instruments are accounted for as equity-settled share-based payment transactions, regardless of how the equity
instruments are obtained by the Group.
When the Company grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised
as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting period of the
grant.
Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised
as a finance cost.
Revenue
Revenue is recognised when the goods are delivered and have been accepted by customers at their premises. For
contracts that permit the customer to return an item, revenue is recognised to the extent that it is highly probably that
a significant reversal in the amount of cumulative revenue recognised will not occur.
Therefore, the amount of revenue recognised is adjusted for expected returns, which are estimated based on the
historical data. In these circumstances, a refund liability and a right to recover returned goods asset are recognised.
Finance Income and Finance Costs
Finance income comprises interest income on funds invested, dividend income, gains on the disposal of debt securities
measured at fair value through other comprehensive income, changes in the fair value of financial assets at fair value
through profit and loss, and gains on hedging instruments that are recognised in profit or loss. Interest income is
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or
loss on the date that the Group’s right to receive payment is established, which in the case of quoted securities is the ex-
dividend date.
Finance costs comprise interest expense on borrowings, losses on the disposal of debt securities measured at fair value
through other comprehensive income, changes in the fair value of financial assets at fair value through profit or loss and
losses on hedging instruments that are recognised in profit or loss. Borrowing costs that are not directly attributable to
the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest
method.
Foreign currency gains and losses are reported on a net basis.
Income Tax
Income tax expense comprises current and deferred tax. Current and deferred tax is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive
income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to
settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent
that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Goods and Services Tax and Equivalent Indirect Taxes
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST) and equivalent indirect
taxes, except where the amount of tax incurred is not recoverable from the taxation authority. In these circumstances,
the tax is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are
stated with the amount of tax included. The net amount of tax recoverable from, or payable to, the taxation authority is
included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The tax components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the tax authority are classified as operating
cash flows.
Earnings per Share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares, which comprise listed options and share options granted to employees.
Segment Reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. All operating segment operating results are regularly reviewed by the Group’s Managing Director to make
decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available.
Segment results that are reported to the Managing Director include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise minimal, not material corporate assets
(primarily the Group’s headquarters), head office expenses, and income tax assets and liabilities. Segment capital
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ANNUAL REPORT CENTAURUS METALS LIMITED
Financial Report – 31 December 2022
other than goodwill.
Government Grants
expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets
Government grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on
a systematic basis in the periods in which the expenses are recognise, unless the conditions for receiving the grant are
met after the related expenses have been recognised. In this case, the grant is recognised when it becomes receivable.
The Group has adopted the amendment to standards, including any consequential amendments to other standards, with
Changes in Accounting Policies
a date of initial application of 1 January 2022.
New Standards and Interpretations Not Yet Adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December
2022 reporting periods and have not been early adopted by the Group These standards are not expected to have a
material impact on the entity in the current or future reporting periods and on foreseesable future transactions.
There are no other standards that are not yet effective and that would be expected to have a material impact on the
entity in the current or future reporting period and on foreseeable future transactions.
Note 6.
Operating Segments
The Group operates in the mineral exploration industry. For management purposes the Group is organised into one main
operating segment which involves the exploration of minerals. All of the Group’s activities are interrelated and financial
information is reported to the Managing Director (Chief Operating Decision Maker) as a single segment. Accordingly, all
significant operating decisions are based upon an analysis on the Group as one segment. The financial results and financial
position from this segment are largely equivalent to the financial statements of the Group as a whole.
Geographical Segment Information
Brazil
Australia
Total
Note 7.
Other Income
R&D tax refund
Other
Gain on sale of property plant & equipment
Note 8.
Employee Benefits Expense
Salaries, fees and other benefits
Superannuation
Recognised in exploration expenditure expense
Total
Note 9.
Share-based Payments
2022
Non-current
Assets
$
21,651,685
307,784
21,959,469
2021
Non-current
Assets
$
17,968,727
91,923
18,060,650
31 December
31 December
2022
$
517,875
10,769
6,256
534,900
2021
$
265,862
-
-
265,862
31 December
31 December
2022
$
6,760,576
293,323
(4,556,382)
2,497,517
2021
$
3,910,049
170,709
(2,240,576)
1,840,182
From time to time the Group may make share-based payments in connection with its activities. These payments may
comprise the issue of options under various terms and conditions. Options granted carry no dividend or voting rights.
When exercisable, each option is converted into one ordinary share of the Company with full dividend and voting rights.
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65
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Financial Report – 31 December 2022
recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or
loss on the date that the Group’s right to receive payment is established, which in the case of quoted securities is the ex-
expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets
other than goodwill.
Government Grants
Government grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on
a systematic basis in the periods in which the expenses are recognise, unless the conditions for receiving the grant are
met after the related expenses have been recognised. In this case, the grant is recognised when it becomes receivable.
Changes in Accounting Policies
The Group has adopted the amendment to standards, including any consequential amendments to other standards, with
a date of initial application of 1 January 2022.
New Standards and Interpretations Not Yet Adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December
2022 reporting periods and have not been early adopted by the Group These standards are not expected to have a
material impact on the entity in the current or future reporting periods and on foreseesable future transactions.
There are no other standards that are not yet effective and that would be expected to have a material impact on the
entity in the current or future reporting period and on foreseeable future transactions.
Note 6.
Operating Segments
The Group operates in the mineral exploration industry. For management purposes the Group is organised into one main
operating segment which involves the exploration of minerals. All of the Group’s activities are interrelated and financial
information is reported to the Managing Director (Chief Operating Decision Maker) as a single segment. Accordingly, all
significant operating decisions are based upon an analysis on the Group as one segment. The financial results and financial
position from this segment are largely equivalent to the financial statements of the Group as a whole.
Geographical Segment Information
Brazil
Australia
Total
Note 7.
Other Income
R&D tax refund
Gain on sale of property plant & equipment
Other
Note 8.
Employee Benefits Expense
Salaries, fees and other benefits
Superannuation
Recognised in exploration expenditure expense
Total
Note 9.
Share-based Payments
2022
Non-current
Assets
$
21,651,685
307,784
21,959,469
31 December
2022
$
517,875
10,769
6,256
534,900
2021
Non-current
Assets
$
17,968,727
91,923
18,060,650
31 December
2021
$
265,862
-
-
265,862
31 December
2022
$
31 December
2021
$
6,760,576
293,323
(4,556,382)
2,497,517
3,910,049
170,709
(2,240,576)
1,840,182
From time to time the Group may make share-based payments in connection with its activities. These payments may
comprise the issue of options under various terms and conditions. Options granted carry no dividend or voting rights.
When exercisable, each option is converted into one ordinary share of the Company with full dividend and voting rights.
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CENTAURUS METALS LIMITED ANNUAL REPORT
65
dividend date.
method.
Income Tax
income.
Finance costs comprise interest expense on borrowings, losses on the disposal of debt securities measured at fair value
through other comprehensive income, changes in the fair value of financial assets at fair value through profit or loss and
losses on hedging instruments that are recognised in profit or loss. Borrowing costs that are not directly attributable to
the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest
Foreign currency gains and losses are reported on a net basis.
Income tax expense comprises current and deferred tax. Current and deferred tax is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to
settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent
that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Goods and Services Tax and Equivalent Indirect Taxes
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST) and equivalent indirect
taxes, except where the amount of tax incurred is not recoverable from the taxation authority. In these circumstances,
the tax is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are
stated with the amount of tax included. The net amount of tax recoverable from, or payable to, the taxation authority is
included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The tax components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the tax authority are classified as operating
cash flows.
Earnings per Share
Segment Reporting
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares, which comprise listed options and share options granted to employees.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. All operating segment operating results are regularly reviewed by the Group’s Managing Director to make
decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available.
Segment results that are reported to the Managing Director include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise minimal, not material corporate assets
(primarily the Group’s headquarters), head office expenses, and income tax assets and liabilities. Segment capital
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ANNUAL REPORT CENTAURUS METALS LIMITED
Financial Report – 31 December 2022
The following table sets out the vesting outcome base on the Company’s Absolute TSR performance
Assessment Table
Threshold TSR Level over
Amount of ZEPOs which will vest
Assessment Period
and become exercisable
Less than 30%
B/t 30% and 40%
B/t 40% and 50%
50% or greater
Zero
50%
75%
100%
Inputs for Measurement of Grant Date Fair Values
The fair value at grant date of the share-based payments is charged to the income statement over the period which the
benefits of the employee services are expected to be derived. The fair values of awards granted were estimated using a
either a Monte Carlo simulation or a Black-Scholes option pricing technique taking into account the following inputs:
Grant Date
Expiry Date
23/03/22
31/12/25
Exercise
Price
$0.000
Life of
option
Share
price at
Expected
Vesting
share price
condition
grant date
volatility
3.78 years
$1.30
100%
Relative
Risk-free
interest
rate
2.173%
Fair Value at
grant date
$1.1485
23/03/22
31/12/25
$0.000
3.78 years
$1.30
100%
Absolute
2.173%
$1.0496
TSR
TSR
Total expense recognised as share-based payment – share options
31 December
31 December
2022
$
1,143,562
2021
$
781,107
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
During the reporting period 1,225,220 options were issued to employees and directors (2021: 1,395,452). Options issued
to employees were issued under the Employee Share Incentive Plan approved by shareholders at the Annual General
Meeting on 27 May 2022. Options issued to executive directors were approved by shareholders under ASX Listing Rule
10.11.
Reconciliation of Outstanding Share Options
The number and weighted average exercise prices of share options issued are as follows:
Outstanding at start of period
Exercised during the period
Lapsed during the period
Issued during the period
Outstanding at balance date
Exercisable at balance date
Weighted
Average
Exercise Price
2022
$0.1822
$0.2807
-
$0.0000
$0.1212
$0.1800
Number of
Options
2022
12,247,857
(3,750,002)
-
1,225,220
9,723,075
350,001
Weighted
Average
Exercise Price
2021
$0.2172
$0.0021
-
$0.0000
$0.1822
$0.2721
Number of
Options
2021
12,085,733
(1,233,335)
-
1,395,452
12,247,857
4,100,003
The options outstanding at 31 December 2022 have exercise prices ranging from $0.000 to $0.405 (2021: $0.000 to
$0.405) and the weighted average remaining contractual life is 1.40 years (2021: 1.61 years).
There were 3,750,002 options exercised during the year (2021: 1,233,335). There were 1,225,220 options issued during
the year (2021: 1,395,452). Details of the options issued during the year are as follows:
Grant Date
Number of Options
Vesting Period(1)
Option Term
Expenses Arising from Share Based Payment Transactions
Directors
23/03/22
23/03/22
Total
Employees
23/03/22
23/03/22
300,700
300,698
601,398
311,912
311,910
623,822
36 months(2)
36 months(3)
48 months
48 months
36 months(2)
36 months(3)
48 months
48 months
(1) From 1 January 2022 subject to continued employment.
(2) Options will vest in the future subject to performance and services based vesting conditions being met. The Company’s share price performance
is measured via relative Total Shareholder Return (TSR). The Company’s TSR is measured against a peer group of companies. Vesting will occur
subject to meeting a three-year service condition to 31 December 2024 and the performance condition tested against the relative TSR measure
for the period 1 January 2022 to 31 December 2024.
(3) Vesting will occur subject to meeting a three-year service condition to 31 December 2024 and the performance condition tested against the
absolute TSR measure for the period 1 January 2022 to 31 December 2024.
The following table sets out the vesting outcome based on the Company’s relative TSR performance.
TSR percentile compared to peer group
Percentage Options that vest
<50th percentile
0%
Between 50th and 75th percentile
Pro-rata between 50% and 100%
>75th percentile
100%
No options will vest unless the percentile ranking of the Company’s TSR for the relevant performance year, as compared
to the TSRs for the Peer Group companies, is at or above the 50th percentile.
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Financial Report – 31 December 2022
The following table sets out the vesting outcome base on the Company’s Absolute TSR performance
Assessment Table
Threshold TSR Level over
Assessment Period
Amount of ZEPOs which will vest
and become exercisable
Less than 30%
B/t 30% and 40%
B/t 40% and 50%
50% or greater
Zero
50%
75%
100%
Inputs for Measurement of Grant Date Fair Values
The fair value at grant date of the share-based payments is charged to the income statement over the period which the
benefits of the employee services are expected to be derived. The fair values of awards granted were estimated using a
either a Monte Carlo simulation or a Black-Scholes option pricing technique taking into account the following inputs:
Grant Date
23/03/22
Expiry Date
31/12/25
Exercise
Price
$0.000
Life of
option
3.78 years
Share
price at
grant date
$1.30
Expected
share price
volatility
100%
23/03/22
31/12/25
$0.000
3.78 years
$1.30
100%
Vesting
condition
Relative
TSR
Absolute
TSR
Risk-free
interest
rate
2.173%
Fair Value at
grant date
$1.1485
2.173%
$1.0496
Grant Date
Number of Options
Vesting Period(1)
Option Term
Expenses Arising from Share Based Payment Transactions
Total expense recognised as share-based payment – share options
31 December
2022
$
1,143,562
31 December
2021
$
781,107
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
During the reporting period 1,225,220 options were issued to employees and directors (2021: 1,395,452). Options issued
to employees were issued under the Employee Share Incentive Plan approved by shareholders at the Annual General
Meeting on 27 May 2022. Options issued to executive directors were approved by shareholders under ASX Listing Rule
10.11.
Reconciliation of Outstanding Share Options
The number and weighted average exercise prices of share options issued are as follows:
Outstanding at start of period
Exercised during the period
Lapsed during the period
Issued during the period
Outstanding at balance date
Exercisable at balance date
Weighted
Average
Exercise Price
2022
$0.1822
$0.2807
-
$0.0000
$0.1212
$0.1800
Number of
Options
2022
12,247,857
(3,750,002)
1,225,220
9,723,075
350,001
Weighted
Average
Exercise Price
2021
$0.2172
$0.0021
$0.0000
$0.1822
$0.2721
-
-
Number of
Options
2021
12,085,733
(1,233,335)
-
1,395,452
12,247,857
4,100,003
The options outstanding at 31 December 2022 have exercise prices ranging from $0.000 to $0.405 (2021: $0.000 to
$0.405) and the weighted average remaining contractual life is 1.40 years (2021: 1.61 years).
There were 3,750,002 options exercised during the year (2021: 1,233,335). There were 1,225,220 options issued during
the year (2021: 1,395,452). Details of the options issued during the year are as follows:
Directors
23/03/22
23/03/22
Total
Employees
23/03/22
23/03/22
300,700
300,698
601,398
311,912
311,910
623,822
36 months(2)
36 months(3)
48 months
48 months
36 months(2)
36 months(3)
48 months
48 months
(1) From 1 January 2022 subject to continued employment.
(2) Options will vest in the future subject to performance and services based vesting conditions being met. The Company’s share price performance
is measured via relative Total Shareholder Return (TSR). The Company’s TSR is measured against a peer group of companies. Vesting will occur
subject to meeting a three-year service condition to 31 December 2024 and the performance condition tested against the relative TSR measure
for the period 1 January 2022 to 31 December 2024.
(3) Vesting will occur subject to meeting a three-year service condition to 31 December 2024 and the performance condition tested against the
absolute TSR measure for the period 1 January 2022 to 31 December 2024.
The following table sets out the vesting outcome based on the Company’s relative TSR performance.
TSR percentile compared to peer group
Percentage Options that vest
<50th percentile
>75th percentile
0%
100%
Between 50th and 75th percentile
Pro-rata between 50% and 100%
No options will vest unless the percentile ranking of the Company’s TSR for the relevant performance year, as compared
to the TSRs for the Peer Group companies, is at or above the 50th percentile.
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Note 10.
Income Tax
Numerical Reconciliation of Income Tax Expense to Prima Facie Tax Payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 27.5% (2021: 27.5%)
Tax effect of amounts which are not deductible/(taxable) in calculating
taxable income:
Overseas project generation and review costs
Share-based payments
Non assessable grant income
Sundry items
Effect of tax rates in foreign jurisdictions
Under provision from prior year
Deferred tax assets not recognised
31 December
2022
$
(42,627,555)
(11,722,578)
31 December
2021
$
(16,994,715)
(4,673,547)
1,997,922
314,479
(142,416)
(222,930)
(9,775,523)
(27,327)
(326,378)
10,129,228
822,525
214,805
(73,113)
9,918
(3,699,412)
(8,886)
(761,674)
4,469,972
Income tax benefit, being deferred tax
-
-
Tax Losses
Tax losses
Potential tax benefit (between 27.5-34%)
31 December
2022
$
66,189,799
19,677,571
31 December
2021
$
61,188,366
18,096,045
The tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of
remaining tax losses because it is not probable that future taxable profit will be available against which the Group can
utilise the benefit.
Deferred Tax Assets
The following deferred tax balances have not been recognised:
Deferred Tax Assets
Exploration expenditure
Accrued expenses/provisions
Transaction costs relating to issue of capital
Tax losses carried forward (net of tax losses utilised)
31 December
2022
$
31 December
2021
$
21,247,510
8,992,211
246,235
19,677,571
50,163,527
9,931,563
10,916,869
80,887
18,096,045
39,025,364
The tax benefits of the above deferred tax assets will only be obtained if:
The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit to
be utilized;
The Company continues to comply with the conditions for the deductibility imposed by law; and
No changes in income tax legislation adversely affect the Company in utilising the benefits.
Note 11. Dividends
There were no dividends paid or declared during the period (2021: nil).
Financial Report – 31 December 2022
Note 12. Earnings/(Loss) per Share
Basic Loss per Share
The calculation of basic and diluted earnings per share at 31 December 2022 was based on the loss attributable to
ordinary shareholders of $42,627,555 (2021: $16,994,715) and a weighted average number of ordinary shares
outstanding of 420,198,738 (2021: 337,081,397), calculated as follows:
Loss Attributable to Ordinary Shareholders
Loss attributable to the shareholders
Weighted Average Number of Ordinary Shares
Issued ordinary shares at beginning of the period
Effect of shares issued
Weighted average number of ordinary shares at the end of the period
Loss per share (cents)
Diluted loss per share (cents)
Diluted Earnings per Share
Cash at bank and on hand
Deposits - short term
Potential ordinary shares were not considered to be dilutive as the Group made a loss for the year ended 31 December
2022 and the exercise of potential shares would not increase that loss.
Note 13. Cash and Cash Equivalents
The deposits are bearing floating and fixed interest rates between 3.15% & 3.81% in Australia and 12.39% & 12.92% in
Brazil (2021: between 0.06% Australia and 4.79% Brazil).
Note 14. Reconciliation of Cash Flows from Operating Activities
Non-cash employee benefits expense– share based payments
(Profit)/Loss on sale of plant and equipment
Operating loss before changes in working capital and provisions
(40,957,625)
(15,991,213)
Loss for the period
Adjustments for:
Depreciation
Change in other receivables
Change in trade creditors and provisions
Net cash used in operating activities
31 December
31 December
2022
$
2021
$
(42,627,555)
(16,994,715)
2022
Number
358,291,616
61,907,122
420,198,738
2021
Number
325,857,160
11,224,237
337,081,397
(10.14)
(10.14)
(5.04)
(5.04)
31 December
31 December
2022
$
760,413
33,287,309
34,047,722
2021
$
9,154
8,250,235
8,259,389
31 December
31 December
2022
$
2021
$
(42,627,555)
(16,994,715)
537,137
1,143,562
(10,769)
222,395
781,107
-
(1,050,692)
2,035,437
(39,972,880)
(321,775)
1,094,156
(15,218,832)
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Note 10.
Income Tax
Numerical Reconciliation of Income Tax Expense to Prima Facie Tax Payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 27.5% (2021: 27.5%)
Tax effect of amounts which are not deductible/(taxable) in calculating
taxable income:
Overseas project generation and review costs
Share-based payments
Non assessable grant income
Sundry items
Effect of tax rates in foreign jurisdictions
Under provision from prior year
Deferred tax assets not recognised
Tax Losses
Tax losses
Potential tax benefit (between 27.5-34%)
Income tax benefit, being deferred tax
-
-
The tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of
remaining tax losses because it is not probable that future taxable profit will be available against which the Group can
utilise the benefit.
Deferred Tax Assets
The following deferred tax balances have not been recognised:
Deferred Tax Assets
Exploration expenditure
Accrued expenses/provisions
Transaction costs relating to issue of capital
Tax losses carried forward (net of tax losses utilised)
The tax benefits of the above deferred tax assets will only be obtained if:
The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit to
The Company continues to comply with the conditions for the deductibility imposed by law; and
No changes in income tax legislation adversely affect the Company in utilising the benefits.
be utilized;
Note 11. Dividends
There were no dividends paid or declared during the period (2021: nil).
31 December
31 December
2022
$
(42,627,555)
(11,722,578)
2021
$
(16,994,715)
(4,673,547)
1,997,922
314,479
(142,416)
(222,930)
(9,775,523)
(27,327)
(326,378)
10,129,228
822,525
214,805
(73,113)
9,918
(3,699,412)
(8,886)
(761,674)
4,469,972
31 December
31 December
2022
$
66,189,799
19,677,571
2021
$
61,188,366
18,096,045
31 December
31 December
2022
$
2021
$
21,247,510
8,992,211
246,235
19,677,571
50,163,527
9,931,563
10,916,869
80,887
18,096,045
39,025,364
Financial Report – 31 December 2022
Note 12. Earnings/(Loss) per Share
Basic Loss per Share
The calculation of basic and diluted earnings per share at 31 December 2022 was based on the loss attributable to
ordinary shareholders of $42,627,555 (2021: $16,994,715) and a weighted average number of ordinary shares
outstanding of 420,198,738 (2021: 337,081,397), calculated as follows:
Loss Attributable to Ordinary Shareholders
Loss attributable to the shareholders
Weighted Average Number of Ordinary Shares
Issued ordinary shares at beginning of the period
Effect of shares issued
Weighted average number of ordinary shares at the end of the period
Loss per share (cents)
Diluted loss per share (cents)
Diluted Earnings per Share
31 December
2022
$
31 December
2021
$
(42,627,555)
(16,994,715)
2022
Number
358,291,616
61,907,122
420,198,738
2021
Number
325,857,160
11,224,237
337,081,397
(10.14)
(10.14)
(5.04)
(5.04)
Potential ordinary shares were not considered to be dilutive as the Group made a loss for the year ended 31 December
2022 and the exercise of potential shares would not increase that loss.
Note 13. Cash and Cash Equivalents
Cash at bank and on hand
Deposits - short term
31 December
2022
$
31 December
2021
$
760,413
33,287,309
34,047,722
9,154
8,250,235
8,259,389
The deposits are bearing floating and fixed interest rates between 3.15% & 3.81% in Australia and 12.39% & 12.92% in
Brazil (2021: between 0.06% Australia and 4.79% Brazil).
Note 14. Reconciliation of Cash Flows from Operating Activities
Loss for the period
Adjustments for:
Depreciation
Non-cash employee benefits expense– share based payments
(Profit)/Loss on sale of plant and equipment
Operating loss before changes in working capital and provisions
Change in other receivables
Change in trade creditors and provisions
Net cash used in operating activities
31 December
2022
$
31 December
2021
$
(42,627,555)
(16,994,715)
537,137
222,395
1,143,562
(10,769)
(40,957,625)
(1,050,692)
2,035,437
(39,972,880)
781,107
-
(15,991,213)
(321,775)
1,094,156
(15,218,832)
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Financial Report – 31 December 2022
Note 15. Other Receivables and Prepayments
Current
R&D tax refund
Other Receivables
Security deposits
Prepayments
Non – Current
Other Receivables
Provision for impairment
Security deposits
31 December
2022
$
31 December
2021
$
517,875
228,463
76,293
506,707
1,329,338
3,570,292
(3,563,969)
42,886
49,209
265,862
67,446
33,648
162,769
529,725
1,008,755
(1,000,599)
-
8,156
Non-current Other Receivables include Brazilian federal VAT (PIS-Cofins) levied on the Group’s purchases. Recoverability
of PIS-Cofins assets is dependent upon the Group generating a federal company tax liability, which may be offset against
the Group’s PIS-Cofins assets if the Group elects to do so.
The current practice of the Group is to impair PIS-Cofins assets given the pre-development status of the Jaguar Project.
During the period the entity wrote off $3,876 which was previously provided for due to credits expiring (2021: $3,388).
An impairment expense of $2,359,170 was recognized on indirect taxes receivable in 2022 (2021: $707,729). Information
about the Group’s exposure to credit and market risk and impairment losses for other receivables is included in Note 25.
Note 16. Property, Plant and Equipment
At Cost
Accumulated depreciation
Movements in Carrying Amounts
31 December
2022
$
9,958,972
(1,055,016)
8,903,956
31 December
2021
$
6,526,942
(522,709)
6,004,233
Movements in the carrying amounts for each class of property, plant and equipment between beginning and end of the
current financial year.
Plant and Equipment
Carrying amount at beginning
Additions
Disposals
Depreciation
Effect of movements in exchange rates
Carrying amount at end
Land and Buildings
Carrying amount at beginning
Additions
Depreciation
Effect of movements in exchange rates
Carrying amount at end
31 December
2022
$
31 December
2021
$
880,659
873,156
(13,284)
(193,126)
51,935
1,599,340
5,010,056
565,807
(5,510)
723,556
6,293,909
457,064
549,727
(4,105)
(116,079)
(5,948)
880,659
175,901
4,885,835
(1,915)
(49,765)
5,010,056
Page 42 of 55
Financial Report – 31 December 2022
Right-of-use assets (see also Note 20)
Carrying amount at beginning
Additions
Depreciation
Effect of movements in exchange rates
Carrying amount at end
Total
Opening net book value
Additions
Effect of movements in exchange rate
Additions to Land in 2021 include the allocation of the fair value of 3 properties at the Jaguar Project which Centaurus
has secured possession of.
Note 17. Exploration and Evaluation Assets
The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective project areas.
Note 18. Trade and Other Payables
Current
Trade and other creditors
Accrued expenses
Note 19. Financial Liability
Current
Land possession
Non-Current
Land possession
Consideration due to Vale for Jaguar acquisition
Up-front consideration due to Terrativa for Salobo West Royalty buy back
113,518
1,219,588
(327,768)
5,369
1,010,707
8,903,956
152,029
68,218
(104,400)
(2,329)
113,518
6,004,233
31 December
31 December
2022
$
12,048,261
66,466
891,577
13,006,304
2021
$
8,764,153
3,402,083
(117,975)
12,048,261
31 December
31 December
2022
$
2021
$
3,286,165
1,302,851
4,589,016
1,270,026
1,623,261
2,893,287
31 December
31 December
2022
$
2021
$
-
-
1,432,088
1,432,088
2,400,840
933,534
1,827,074
5,161,448
183,926
183,926
1,325,267
1,325,267
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71
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Right-of-use assets (see also Note 20)
Carrying amount at beginning
Additions
Depreciation
Effect of movements in exchange rates
Carrying amount at end
Total
113,518
1,219,588
(327,768)
5,369
1,010,707
8,903,956
152,029
68,218
(104,400)
(2,329)
113,518
6,004,233
Additions to Land in 2021 include the allocation of the fair value of 3 properties at the Jaguar Project which Centaurus
has secured possession of.
Note 17. Exploration and Evaluation Assets
Opening net book value
Additions
Effect of movements in exchange rate
31 December
2022
$
12,048,261
66,466
891,577
13,006,304
31 December
2021
$
8,764,153
3,402,083
(117,975)
12,048,261
The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective project areas.
Note 18. Trade and Other Payables
Current
Trade and other creditors
Accrued expenses
Note 19. Financial Liability
Current
Consideration due to Vale for Jaguar acquisition
Up-front consideration due to Terrativa for Salobo West Royalty buy back
Land possession
Non-Current
Land possession
31 December
2022
$
31 December
2021
$
3,286,165
1,302,851
4,589,016
1,270,026
1,623,261
2,893,287
31 December
2022
$
31 December
2021
$
-
-
1,432,088
1,432,088
2,400,840
933,534
1,827,074
5,161,448
183,926
183,926
1,325,267
1,325,267
Page 43 of 55
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CENTAURUS METALS LIMITED ANNUAL REPORT
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CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Note 20.
Leases
The Group leases motor vehicles, offices and warehouse facilities. The leases are typically for a period of 1 to 5 years.
During the year the Group exercised its option to extend the Corporate head office lease for a further 2 years. In addition
a project office lease was entered into for a 21 month period. In Brazil a new office lease was entered into in Belo
Horizonte for a period of 2.5 years. New leases were entered into for motor vehicles, office and warehouse space for the
Jaguar project. A right of use asset and lease liability have been recognised as a result of these leases. The Group has
applied the exemptions available under AASB 16 for short term leases and leases of low value.
Financial Report – 31 December 2022
Options
Listed Options
30,995).
Information relating to options, including details of options issued, exercised or lapsed during the financial year and
outstanding at the end of the financial year are set out in Note 9.
No listed options were exercised during the year (2021: 28,909,045). No listed options expired during the year (2021:
Current
Non-Current
Lease payments are payable as follows
Less than one year
Between one to three years
Amounts Recognised in Profit or Loss
Interest on lease liabilities
Expenses relating to short-term leases
Expenses relating to leases of low-value assets, excluding short term leases
of low value assets
Note 21. Capital and Reserves
On issue at beginning of period
Issue of ordinary shares for placement at $1.1600 per share
Issue of ordinary shares as a part of placement fee at $1.1600 per share
Issue of ordinary shares on exercise of unlisted options at $0.2250 per share
Issue of ordinary shares on exercise of unlisted options at $0.3780 per share
Issue of ordinary shares on exercise of unlisted options at $0.1800 per share
Issue of ordinary shares for Salobo West royalty buy back at $0.6108 per share
Issue of ordinary shares on exercise of unlisted options at $0.21 per share
Issue of ordinary shares on exercise of listed options at $0.18 per share
On issue at the end of the period – Fully paid
Ordinary Shares
31 December
2022
$
540,419
488,512
1,028,931
31 December
2022
$
540,419
488,512
1,028,931
31 December
2021
$
86,576
29,334
115,910
31 December
2021
$
86,576
29,334
115,910
31 December
2022
$
31 December
2021
$
33,388
243,837
7,901
7,901
297,124
41,106
2022 Number of
Shares
358,291,616
64,655,172
409,483
2,233,335
1,400,000
116,667
-
-
-
427,106,273
2021 Number
of Shares
325,857,160
-
-
-
-
-
2,292,076
1,233,335
28,909,045
358,291,616
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. Every holder of ordinary shares present at a meeting
in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Weighted
average
exercise
price
2022
Number of
Listed
Options
Weighted
average
exercise
price
-
-
-
-
-
-
-
-
$0.18
$0.18
$0.18
-
2021
Number of
Listed
Options
28,940,040
(28,909,045)
(30,995)
-
On issue at beginning of period
Options exercised - CTMOC
Options expired - CTMOC
On issue at the end of the period
Share-based Payments Reserve
Translation Reserve
subsidiary.
Guarantees
Note 22. Contingent Liabilities
Jaguar Project Acquisition
the Jaguar Project Acquisition.
The share-based payments reserve is used to recognise the fair value of options issued but not exercised.
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations, as well as from the translation of liabilities that hedge the Group’s net investment in a foreign
The Company has given guarantees in respect of bank security bonds amounting to $119,159 (2021: $33,648), secured
by cash deposits lodged as security with the bank.
The terms of the Jaguar Sale and Purchase Agreement with Vale give rise to the following contingent liabilities related to
US$5.0 million on first commercial production from the project payable to Vale;
a royalty of 0.55% on Net Operating Revenue for nickel sulphate or 0.75% on Net Operating Revenue generated
from any future concentrate production from the project payable to Vale; and
a royalty of 1.8% on Net Operating Revenue generated from any future concentrate production from the project
No material losses are anticipated in respect of any of the above contingent liabilities. There are no other contingent
payable to BNDES.
liabilities that require disclosure.
Note 23. Capital Commitments
The Group has no capital commitments as at the year ended 31 December 2022 (2021: $nil).
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Note 20.
Leases
The Group leases motor vehicles, offices and warehouse facilities. The leases are typically for a period of 1 to 5 years.
During the year the Group exercised its option to extend the Corporate head office lease for a further 2 years. In addition
a project office lease was entered into for a 21 month period. In Brazil a new office lease was entered into in Belo
Horizonte for a period of 2.5 years. New leases were entered into for motor vehicles, office and warehouse space for the
Jaguar project. A right of use asset and lease liability have been recognised as a result of these leases. The Group has
applied the exemptions available under AASB 16 for short term leases and leases of low value.
31 December
31 December
Current
Non-Current
Lease payments are payable as follows
Less than one year
Between one to three years
Amounts Recognised in Profit or Loss
Interest on lease liabilities
Expenses relating to short-term leases
Expenses relating to leases of low-value assets, excluding short term leases
of low value assets
Note 21. Capital and Reserves
On issue at beginning of period
Issue of ordinary shares for placement at $1.1600 per share
Issue of ordinary shares as a part of placement fee at $1.1600 per share
Issue of ordinary shares on exercise of unlisted options at $0.2250 per share
Issue of ordinary shares on exercise of unlisted options at $0.3780 per share
Issue of ordinary shares on exercise of unlisted options at $0.1800 per share
Issue of ordinary shares for Salobo West royalty buy back at $0.6108 per share
Issue of ordinary shares on exercise of unlisted options at $0.21 per share
Issue of ordinary shares on exercise of listed options at $0.18 per share
31 December
31 December
2022
$
540,419
488,512
1,028,931
2022
$
540,419
488,512
1,028,931
2022
$
33,388
243,837
7,901
2021
$
86,576
29,334
115,910
2021
$
86,576
29,334
115,910
2021
$
7,901
297,124
41,106
31 December
31 December
2022 Number of
2021 Number
of Shares
325,857,160
Shares
358,291,616
64,655,172
409,483
2,233,335
1,400,000
116,667
-
-
-
-
-
-
-
-
2,292,076
1,233,335
28,909,045
Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. Every holder of ordinary shares present at a meeting
in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Financial Report – 31 December 2022
Options
Information relating to options, including details of options issued, exercised or lapsed during the financial year and
outstanding at the end of the financial year are set out in Note 9.
Listed Options
No listed options were exercised during the year (2021: 28,909,045). No listed options expired during the year (2021:
30,995).
Weighted
average
exercise
price
2022
Number of
Listed
Options
Weighted
average
exercise
price
-
-
-
-
-
-
-
-
$0.18
$0.18
$0.18
-
2021
Number of
Listed
Options
28,940,040
(28,909,045)
(30,995)
-
On issue at beginning of period
Options exercised - CTMOC
Options expired - CTMOC
On issue at the end of the period
Share-based Payments Reserve
The share-based payments reserve is used to recognise the fair value of options issued but not exercised.
Translation Reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations, as well as from the translation of liabilities that hedge the Group’s net investment in a foreign
subsidiary.
Note 22. Contingent Liabilities
Guarantees
The Company has given guarantees in respect of bank security bonds amounting to $119,159 (2021: $33,648), secured
by cash deposits lodged as security with the bank.
Jaguar Project Acquisition
The terms of the Jaguar Sale and Purchase Agreement with Vale give rise to the following contingent liabilities related to
the Jaguar Project Acquisition.
US$5.0 million on first commercial production from the project payable to Vale;
a royalty of 0.55% on Net Operating Revenue for nickel sulphate or 0.75% on Net Operating Revenue generated
from any future concentrate production from the project payable to Vale; and
a royalty of 1.8% on Net Operating Revenue generated from any future concentrate production from the project
payable to BNDES.
No material losses are anticipated in respect of any of the above contingent liabilities. There are no other contingent
liabilities that require disclosure.
Note 23. Capital Commitments
On issue at the end of the period – Fully paid
427,106,273
358,291,616
The Group has no capital commitments as at the year ended 31 December 2022 (2021: $nil).
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Note 24. Related Parties
Key Management Personnel
KMP compensation is comprised of the following:
Short term employee-benefits (Salaries and STI Plan)
Long term employee benefits
Post–employment benefits
Share-based payments expense
31 December
2022
$
2,494,279
43,089
106,150
1,065,182
3,708,700
31 December
2021
$
2,029,615
30,025
86,545
763,249
2,909,434
Individual Directors and Executives Compensation Disclosures
Information regarding individual directors’ and executives’ compensation and equity instruments disclosures as required
by Corporations Regulation 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report.
Key Management Personnel and Director Transactions
A member of KMP, or their related parties, held positions in other entities that resulted in them having control or
significant influence over the financial or operating policies of these entities.
This entity transacted with the Group in the reporting period. The terms and conditions of the transactions with key
management personnel and their related parties were no more favourable than those available, or which might
reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an
arm’s length basis.
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over
which they have control or significant influence were as follows:
Key Management Person
Mr D M Murcia (1)
Total and current liabilities
Transaction
Legal fees
(1)
Payable to MPH Lawyers, a firm in which Mr Murcia is a partner.
Transactions with Related Parties
Transaction Value
2022
$
21,578
2021
$
8,156
Balance Outstanding as at
31 Dec 2022
$
31 Dec 2021
$
6,015
6,015
-
-
Transactions between the parent company and its subsidiaries which are related parties of that company are eliminated
on consolidation and are not disclosed in this note.
Note 25. Financial Instruments – Fair Values and Risk Management
Financial Risk Management
The Group has exposure to the following risks arising from the use of financial instruments:
Credit Risk
Liquidity Risk
Market Risk
Currency Risk.
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and their management of capital. Further quantitative disclosures are
included throughout these consolidated financial statements.
Financial Report – 31 December 2022
(a)
Risk Management Framework
framework.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and
management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their role and obligations and are able to identify and manage business risks.
(b)
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Group’s other receivables and investment securities.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each counterparty. However,
management also considers the default risk of the industry and country in which counterparties operate, as these factors
may have an influence on credit risk.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
31 December
31 December
2022
$
34,047,722
871,840
34,919,562
2021
$
8,259,389
375,113
8,634,502
Cash and cash equivalents (1)
Other receivables
Standard and Poor’s rating.
(1)
Cash and cash equivalents are held with bank and financial institution counterparties, which are rated BB- to AA based on
Other receivables also include refundable deposits and tax credits which include Brazilian federal VAT (PIS-Cofins). The
recoverability of PIS-Cofins assets is dependent upon the Group generating a federal company tax liability, which may be
offset against the Groups PIS-Cofins assets. As at 31 December 2022, the PIS-Cofins tax asset has been fully impaired as
taxable profits in the ordinary course of business are not considered probable though one-off taxable profits may be
generated on specific transactions. The Group’s maximum exposure to credit risk for other receivables at the reporting
date by geographic region was:
Carrying Amount
31 December
31 December
2022
$
594,428
277,412
871,840
2021
$
299,700
75,413
375,113
Australia
Brazil
Liquidity Risk
These balances are net of provision for impairment (refer to Note 15).
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with the financial
liabilities that are settled by delivering cash or another financial asset.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
As at 31 December 2022, the Group has current trade and other payables of $4,589,016 (31 December 2021: $2,893,287),
Current Financial Liabilities of $1,432,088 (31 December 2021: $5,161,448), current lease liabilities of $540,419 (31
December 2021: $86,576), non current lease liabilities of $488,512 (31 December 2021: $29,334) and Non-Current
Financial Liabilities of $183,926 (31 December 2021: $1,325,267). The Group believes it will have sufficient cash resources
to meet its financial liabilities when due.
The following table shows the contractual maturities of financial liabilities, excluding the impact of netting agreements.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
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Financial Report – 31 December 2022
Note 24. Related Parties
Key Management Personnel
KMP compensation is comprised of the following:
Short term employee-benefits (Salaries and STI Plan)
Long term employee benefits
Post–employment benefits
Share-based payments expense
31 December
31 December
2022
$
2,494,279
43,089
106,150
1,065,182
3,708,700
2021
$
2,029,615
30,025
86,545
763,249
2,909,434
Individual Directors and Executives Compensation Disclosures
Information regarding individual directors’ and executives’ compensation and equity instruments disclosures as required
by Corporations Regulation 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report.
Key Management Personnel and Director Transactions
A member of KMP, or their related parties, held positions in other entities that resulted in them having control or
significant influence over the financial or operating policies of these entities.
This entity transacted with the Group in the reporting period. The terms and conditions of the transactions with key
management personnel and their related parties were no more favourable than those available, or which might
reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an
arm’s length basis.
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over
which they have control or significant influence were as follows:
Key Management Person
Mr D M Murcia (1)
Total and current liabilities
Transaction
Legal fees
(1)
Payable to MPH Lawyers, a firm in which Mr Murcia is a partner.
Transactions with Related Parties
Transaction Value
2022
$
2021
$
21,578
8,156
Balance Outstanding as at
31 Dec 2022
31 Dec 2021
$
6,015
6,015
$
-
-
The Group has exposure to the following risks arising from the use of financial instruments:
Financial Risk Management
Credit Risk
Liquidity Risk
Market Risk
Currency Risk.
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and their management of capital. Further quantitative disclosures are
included throughout these consolidated financial statements.
Financial Report – 31 December 2022
(a)
Risk Management Framework
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
framework.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and
management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their role and obligations and are able to identify and manage business risks.
(b)
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Group’s other receivables and investment securities.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each counterparty. However,
management also considers the default risk of the industry and country in which counterparties operate, as these factors
may have an influence on credit risk.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents (1)
Other receivables
31 December
2022
$
34,047,722
871,840
34,919,562
31 December
2021
$
8,259,389
375,113
8,634,502
(1)
Cash and cash equivalents are held with bank and financial institution counterparties, which are rated BB- to AA based on
Standard and Poor’s rating.
Other receivables also include refundable deposits and tax credits which include Brazilian federal VAT (PIS-Cofins). The
recoverability of PIS-Cofins assets is dependent upon the Group generating a federal company tax liability, which may be
offset against the Groups PIS-Cofins assets. As at 31 December 2022, the PIS-Cofins tax asset has been fully impaired as
taxable profits in the ordinary course of business are not considered probable though one-off taxable profits may be
generated on specific transactions. The Group’s maximum exposure to credit risk for other receivables at the reporting
date by geographic region was:
Transactions between the parent company and its subsidiaries which are related parties of that company are eliminated
on consolidation and are not disclosed in this note.
Note 25. Financial Instruments – Fair Values and Risk Management
Australia
Brazil
Carrying Amount
31 December
2022
$
31 December
2021
$
594,428
277,412
871,840
299,700
75,413
375,113
These balances are net of provision for impairment (refer to Note 15).
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with the financial
liabilities that are settled by delivering cash or another financial asset.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
As at 31 December 2022, the Group has current trade and other payables of $4,589,016 (31 December 2021: $2,893,287),
Current Financial Liabilities of $1,432,088 (31 December 2021: $5,161,448), current lease liabilities of $540,419 (31
December 2021: $86,576), non current lease liabilities of $488,512 (31 December 2021: $29,334) and Non-Current
Financial Liabilities of $183,926 (31 December 2021: $1,325,267). The Group believes it will have sufficient cash resources
to meet its financial liabilities when due.
The following table shows the contractual maturities of financial liabilities, excluding the impact of netting agreements.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
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Financial Report – 31 December 2022
Financial liabilities
31 December 2022
Trade and other payables
Financial liabilities
Lease liabilities
31 December 2021
Trade and other payables
Financial liabilities
Lease liabilities
Market Risk
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2 years
2-5 years
4,589,016
1,616,014
1,028,932
7,233,962
4,589,016
1,672,354
1,137,312
7,398,682
4,589,016
705,040
320,367
5,614,423
-
769,903
288,621
1,058,524
-
197,411
274,440
471,851
-
-
253,884
253,884
2,893,287
6,486,715
115,910
9,495,912
2,893,287
6,710,158
97,163
9,700,608
2,893,287
4,088,863
65,582
7,047,732
-
500,000
31,581
531,581
-
2,121,295
-
2,121,295
-
-
-
-
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising returns.
Currency Risk
The Group is exposed to currency risk on purchases that are denominated in currency other than the respective functional
currencies of the Group entities, primarily the Australian dollar (AUD) and Brazilian Real (BRL). The currencies in which
these transactions are primarily denominated are AUD and BRL.
The Group’s investments in its Brazilian subsidiaries are denominated in AUD and are not hedged as those currency
positions are considered to be long term in nature.
Interest Rate Risk Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Financial assets
Variable rate instruments
Financial assets
31 December
2022
$
31 December
2021
$
20,000,000
13,287,309
33,287,309
-
8,251,513
8,251,513
Fair Value Sensitivity Analysis for Fixed Rate Instruments
The Group does not account for any fixed rate financial assets at fair value through profit or loss. Therefore, a change in
interest rates at the reporting date would not affect profit or loss or equity.
Financial Report – 31 December 2022
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 300 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates,
remain constant. The analysis for 2021 was 100 basis points.
Profit or Loss
Equity
Increase
Decrease
Increase
Decrease
157,200
157,200
(157,200)
(157,200)
23,207
23,207
(23,207)
(23,207)
-
-
-
-
-
-
-
-
The objectives for managing capital are to safeguard the Group’s ability to continue as a going concern and to provide
funding for the Group’s planned exploration activities. Centaurus Metals Limited is an exploration company and is
dependent on its ability to raise capital from the issue of new shares and its ability to realise value from its exploration
and evaluation assets. The Board is responsible for capital management. This involves the use of cash flow forecasts to
determine future capital management requirements.
There were no changes in the Group’s approach to capital management during the period. Neither the Company nor any
of its subsidiaries are subject to externally imposed capital requirements.
31 December 2022
Variable rate instruments
Cash flow sensitivity (net)
31 December 2021
Variable rate instruments
Cash flow sensitivity (net)
Capital Management
Note 26. Group Entities
Parent Entity
Centaurus Metals Limited
Subsidiaries
Centaurus Resources Pty Ltd
San Greal Resources Pty Ltd
Itapitanga Holdings Pty Ltd
Centaurus Brasil Mineração Ltda
Centaurus Pesquisa Mineral Ltda
Centaurus Gerenciamento Ltda
Centaurus Niquel Ltda
Itapitanga Mineração Ltda
Note 27. Subsequent Events
Country of
Incorporation
Ownership interest
2022
2021
Australia
Australia
Australia
Brazil
Brazil
Brazil
Brazil
Brazil
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Other than outlined above, there has not arisen, in the interval between the end of the financial year and the date of this
report an item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the
Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the
Group, in future financial years.
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Financial Report – 31 December 2022
Carrying
amount
Contractual
6 mths or
cash flows
less
6-12 mths
1-2 years
2-5 years
4,589,016
1,616,014
1,028,932
7,233,962
4,589,016
1,672,354
1,137,312
7,398,682
4,589,016
705,040
320,367
769,903
288,621
5,614,423
1,058,524
197,411
274,440
471,851
253,884
253,884
-
-
-
-
-
-
-
-
-
-
-
2,893,287
6,486,715
115,910
2,893,287
6,710,158
97,163
2,893,287
4,088,863
65,582
9,495,912
9,700,608
7,047,732
500,000
31,581
531,581
2,121,295
2,121,295
Financial liabilities
31 December 2022
Trade and other payables
Financial liabilities
Lease liabilities
31 December 2021
Trade and other payables
Financial liabilities
Lease liabilities
Market Risk
Currency Risk
Fixed rate instruments
Financial assets
Variable rate instruments
Financial assets
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising returns.
The Group is exposed to currency risk on purchases that are denominated in currency other than the respective functional
currencies of the Group entities, primarily the Australian dollar (AUD) and Brazilian Real (BRL). The currencies in which
these transactions are primarily denominated are AUD and BRL.
The Group’s investments in its Brazilian subsidiaries are denominated in AUD and are not hedged as those currency
positions are considered to be long term in nature.
Interest Rate Risk Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
31 December
31 December
2022
$
20,000,000
13,287,309
33,287,309
2021
$
-
8,251,513
8,251,513
Fair Value Sensitivity Analysis for Fixed Rate Instruments
The Group does not account for any fixed rate financial assets at fair value through profit or loss. Therefore, a change in
interest rates at the reporting date would not affect profit or loss or equity.
Financial Report – 31 December 2022
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 300 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates,
remain constant. The analysis for 2021 was 100 basis points.
31 December 2022
Variable rate instruments
Cash flow sensitivity (net)
31 December 2021
Variable rate instruments
Cash flow sensitivity (net)
Capital Management
Profit or Loss
Equity
Increase
Decrease
Increase
Decrease
157,200
157,200
(157,200)
(157,200)
23,207
23,207
(23,207)
(23,207)
-
-
-
-
-
-
-
-
The objectives for managing capital are to safeguard the Group’s ability to continue as a going concern and to provide
funding for the Group’s planned exploration activities. Centaurus Metals Limited is an exploration company and is
dependent on its ability to raise capital from the issue of new shares and its ability to realise value from its exploration
and evaluation assets. The Board is responsible for capital management. This involves the use of cash flow forecasts to
determine future capital management requirements.
There were no changes in the Group’s approach to capital management during the period. Neither the Company nor any
of its subsidiaries are subject to externally imposed capital requirements.
Note 26. Group Entities
Parent Entity
Centaurus Metals Limited
Subsidiaries
Centaurus Resources Pty Ltd
San Greal Resources Pty Ltd
Itapitanga Holdings Pty Ltd
Centaurus Brasil Mineração Ltda
Centaurus Pesquisa Mineral Ltda
Centaurus Gerenciamento Ltda
Centaurus Niquel Ltda
Itapitanga Mineração Ltda
Note 27. Subsequent Events
Country of
Incorporation
Ownership interest
2022
2021
Australia
Australia
Australia
Brazil
Brazil
Brazil
Brazil
Brazil
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Other than outlined above, there has not arisen, in the interval between the end of the financial year and the date of this
report an item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the
Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the
Group, in future financial years.
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Financial Report – 31 December 2022
Directors’ Declaration
1.
In the opinion of the directors of Centaurus Metals Limited (the “Company”):
(a)
The consolidated financial statements and notes, and the Remuneration Report in the Directors’ Report
are in accordance with the Corporations Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its
performance, for the financial year ended on that date; and
(ii)
Complying with Australian Accounting Standards
(including
the Australian Accounting
Interpretations) and the Corporations Regulations 2001;
(b)
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
2.
3.
The directors have been given the declarations required by section 295A of the Corporations Act 2001 from the
Managing Director and the Chief Financial Officer for the financial year ended 31 December 2022.
The financial report also complies with International Financial Reporting Standards as disclosed in Note 2.
Signed in accordance with a resolution of the directors.
__________________
D P Gordon
Managing Director
Perth
30 March 2023
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Note 28. Remuneration of Auditors
Audit Services
Auditors of the Company
Audit and review of financial reports
Services other than statutory audit
Taxation compliance services
Other consulting services
31 December
2022
$
31 December
2021
$
60,000
58,861
7,576
10,590
18,166
6,968
-
6,986
Note 29. Parent Entity Disclosures
As at, and throughout, the financial year ended 31 December 2022 the parent entity of the Group was Centaurus Metals
Limited.
Results of the Parent Entity
Loss for the period (1)
Total comprehensive loss for the period
31 December
2022
$
31 December
2021
$
(41,438,269)
(41,438,269)
(16,844,975)
(16,844,975)
(1) During the year ended 31 December 2022 the parent entity provided for an impairment of $31,000,000 (2021: $11,000,000)
(relating to loans to subsidiaries based on an assessment of recoverability).
Financial Position of the Parent Entity at Year End
Current assets
Non-current assets (1)
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Share capital
Reserves
Accumulated losses
Total equity
31 December
2022
$
31 December
2021
$
26,297,277
26,280,746
52,578,023
3,157,749
80,413
3,238,162
49,339,861
5,866,948
13,581,590
19,448,538
2,502,355
223,691
2,726,046
16,722,492
236,289,294
2,267,253
(189,216,686)
49,339,861
162,962,306
1,538,603
(147,778,417)
16,722,492
(1)
Included within non-current assets are investments in and loans to subsidiaries net of provision for impairment. Ultimate
recoupment is dependent on successful development and commercial exploitation or, alternatively, sale of the respective
project areas.
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CENTAURUS METALS LIMITED ANNUAL REPORT
79
Financial Report – 31 December 2022
Directors’ Declaration
1.
In the opinion of the directors of Centaurus Metals Limited (the “Company”):
(a)
The consolidated financial statements and notes, and the Remuneration Report in the Directors’ Report
are in accordance with the Corporations Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its
performance, for the financial year ended on that date; and
Complying with Australian Accounting Standards
Interpretations) and the Corporations Regulations 2001;
(including
the Australian Accounting
(b)
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
The directors have been given the declarations required by section 295A of the Corporations Act 2001 from the
Managing Director and the Chief Financial Officer for the financial year ended 31 December 2022.
The financial report also complies with International Financial Reporting Standards as disclosed in Note 2.
2.
3.
Signed in accordance with a resolution of the directors.
(1) During the year ended 31 December 2022 the parent entity provided for an impairment of $31,000,000 (2021: $11,000,000)
(relating to loans to subsidiaries based on an assessment of recoverability).
Financial Position of the Parent Entity at Year End
__________________
D P Gordon
Managing Director
Perth
30 March 2023
As at, and throughout, the financial year ended 31 December 2022 the parent entity of the Group was Centaurus Metals
CENTAURUS METALS ANNUAL REPORT 2022
Financial Report – 31 December 2022
Note 28. Remuneration of Auditors
Audit Services
Auditors of the Company
Audit and review of financial reports
Services other than statutory audit
Taxation compliance services
Other consulting services
Note 29. Parent Entity Disclosures
Limited.
Results of the Parent Entity
Loss for the period (1)
Total comprehensive loss for the period
Current assets
Non-current assets (1)
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Share capital
Reserves
Accumulated losses
Total equity
project areas.
31 December
31 December
2022
$
2021
$
60,000
58,861
7,576
10,590
18,166
6,968
-
6,986
31 December
31 December
2022
$
2021
$
(41,438,269)
(41,438,269)
(16,844,975)
(16,844,975)
31 December
31 December
2022
$
2021
$
26,297,277
26,280,746
52,578,023
3,157,749
80,413
3,238,162
49,339,861
5,866,948
13,581,590
19,448,538
2,502,355
223,691
2,726,046
16,722,492
236,289,294
2,267,253
162,962,306
1,538,603
(189,216,686)
(147,778,417)
49,339,861
16,722,492
(1)
Included within non-current assets are investments in and loans to subsidiaries net of provision for impairment. Ultimate
recoupment is dependent on successful development and commercial exploitation or, alternatively, sale of the respective
78
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ANNUAL
REPORT
2022
AUSTRALIA
Level 2, 1 Ord Street
West Perth, WA 6005
PO Box 975, West Perth, WA 6872
T: +61 8 6424 8420
BRAZIL
Edifício Century Tower
Rua Maria Luiza Santiago, 200
Santa Lúcia, 17ª Andar - Sala 1703
Belo Horizonte - MG - CEP: 30360-740
BRAZIL
T: +55 31 3194 7750
ACN 009 468 099
www.centaurus.com.au