Blackwood Goldfield Project area in the highly prolific Central Victorian Goldfields that comprise Ballarat and Bendigo
ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Cauldron Energy Limited (ABN 22 102 912 783)
AND CONTROLLED ENTITIES
CAULDRON ENERGY LIMITED
Choosing green energy
initiatives to power our
operations.
Cauldron Energy Limited (ASX: CXU) is an
exploration and development company with
a focus on identifying and developing quality
assets, in significant mineralized trends,
close to infrastructure, and in mining friendly
jurisidictions.
Our portfolio of projects offers exposure to
commodities that include uranium, sand and
gold, each of which is in high demand.
Our primary focus is the world class
Yanrey Uranium Project which has the
potential to play a key role in the industrial
decarbonisation strategy occurring globally.
cauldronenergy.com.au
CAULDRON ENERGY LIMITED
CAULDRON ENERGY LIMITED
CAULDRON ENERGY LIMITED
CAULDRON ENERGY LIMITED
INDEX
CHAIRMAN’S LETTER ...................................................................................................................2
OPERATIONS REPORT ..................................................................................................................3
DIRECTORS’ REPORT ................................................................................................................. 12
REMUNERATION REPORT ............................................................................................................ 15
AUDITOR’S INDEPENDENCE DECLARATION ................................................................................... 22
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ............................................................. 24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................... 25
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................... 26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................... 27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................... 28
DIRECTORS’ DECLARATION ........................................................................................................ 59
INDEPENDENT AUDITOR’S REPORT ............................................................................................. 60
ADDITIONAL INFORMATION ....................................................................................................... 64
NON EXECUTIVE CHAIRMAN
Ian Mulholland
EXECUTIVE DIRECTOR
Michael Fry
NON-EXECUTIVE DIRECTORS
Qiu Derong
Judy Li
Chenchong Zhou
COMPANY SECRETARY
Michael Fry
AUDITORS
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000 AUSTRALIA
SHARE REGISTRAR
Advanced Share Registry
110 Stirling Hwy, Nedlands WA 6009
Telephone: (08) 9389 8033
Facsimile: (08) 9262 3723
STOCK EXCHANGE LISTING
Australian Securities Exchange Code: CXU
PRINCIPAL & REGISTERED OFFICE
(Home Exchange: Perth, Western Australia)
Unit 47, Level 2
1008 Wellington Street
West Perth WA 6005
Telephone: (08) 6270 4693
BANKERS
National Australia Bank
100 St Georges Terrace
Website: www.cauldronenergy.com.au
Perth WA 6000
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
1
1
CAULDRON ENERGY LIMITED
CHAIRMAN’S LETTER
Dear Shareholder
On behalf of the Board of Directors of Cauldron,
I am pleased to provide our Annual Report for FY2022.
I have only recently joined Cauldron, having been appointed Non-Executive Chairman on 31 May 2022. I was
attracted to Cauldron by the unique combination of its projects, and in particular the Yanrey Uranium Project
which is potentially a project of global significance and scale, and by the Blackwood Gold project, an area with
great potential that has seen limited exploration.
The Company’s Yanrey Uranium Project which houses the Bennet Well Deposit is an important strategic asset
to the Company with uranium prices trading at a near 10-year high and over 30 countries worldwide in
the process of considering, planning or starting nuclear power programs including France, which recently
announced plans to build 14 nuclear reactors by 2050, the UK which has plans to build a further 8 nuclear
power plants by 2050 in a bid to generate 50% of its power requirements from nuclear, and Japan which has
a stated goal of obtaining 20-22% of its electricity requirements from nuclear by 2030 which has resulted in
10 nuclear reactors at 6 power stations being given approval to proceed. Added to that are the large number
of nuclear power stations reportedly being built in China.
Nuclear power is central to most country’s plans to reduce their carbon dioxide emissions
with nuclear power providing a base load of reliable electricity that is cheap, carbon-free
and clean. The recent commercialisation of small modular reactors (SMR) has opened
up the potential for Australia to reduce its power costs and carbon dioxide emissions
especially in remote areas like Western Australia.
The mineralisation at Bennet Well is amenable to in-situ leach recovery and as such has the potential for low-
impact, low-cost production. The Company would be well placed to take advantage of the surging appetite for
uranium world-wide were it not for the policy of the Western Australian Labor government which has placed
a ban on uranium mining in the state. A change in sentiment by the Western Australian government would
allow Yanrey, and Western Australia, to establish itself as a dominant provider of clean green energy, allowing
coal to be diverted to uses other than power generation.
With uranium safely and responsibly being mined in other parts of Australia and around the world, and with
significant improvement in techniques and practices over the past 50 years, there seems to be no logical
justification for a continuation of the Labor government policy and the ban.
At the Blackwood Gold Project the Company has just finished its maiden drill program. There were many
challenges and whilst the drilling was not as successful as we had hoped, we did manage to confirm high grade
gold mineralization in a previously untested area and to identify the key structures; key learnings that place
the Company in good stead for future programs where the Company will look to drill deeper below the previous
historical activity into fresh untapped gold in quartz.
We remain excited about the Blackwood goldfield which has been largely untouched for over fifty years, and
where there are over 250 underground workings, mostly less than 100 metres from surface. There is great
optimism that the Company can be successful in targetting high-grade plunge extensions of historical workings
below the 100 metre level, leading to multiple new high-grade discoveries.
In summary, the Company has a portfolio of projects in gold, sand and uranium that offers unique project
diversification in commodities that are in high demand, and that boast the potential for both early cashflow
and long-term growth in value.
I thank our team of dedicated employees for their efforts in difficult circumstances as we emerge from the
COVID pandemic, and look forward to building our team in the next year.
Health and safety of employees and contractors, prudent financial management, execution of our exploration
strategy and regular communication with our shareholders are the Board’s priorities for the coming year, and
we look forward to updating you on our progress as the year unfolds.
For and on behalf of the Board of Cauldron Energy Limited.
Ian Mulholland
Chairman
2
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
Cauldron has a portfolio of projects in uranium, gold and sand. This unique diversification in high-demand
commodities, particularly uranium and gold, boasts potential for long-term growth in value.
URANIUM
Cauldron’s Yanrey Uranium Project is well positioned to take advantage of the growing global demand for
uranium. If the Labor government were to overturn its ban on uranium mining in Western Australia, the Bennet
Well Uranium Resource could be developed to its full potential and assist in meeting that demand by becoming
Western Australia’s first In-Situ Recovery uranium mine.
At the time of writing, the price of uranium is ~US$50 per pound, having stabilised after a rapid two-year
increase (rising from US$30 in mid-2021). The uranium price reached a 10-year high in April 2022 when it
moved above US$64 per pound, spurred by Russia’s invasion of Ukraine, and a growing number of countries
including France, UK and Japan mandating the construction of nuclear power plants to provide baseload power
requirements.
Analysts are predicting a further strengthening of the price and potentially a return to the April 2022 high as
Europe heads into winter, energy prices rise higher and higher and the Russia-Ukraine crisis worsens. Many
governments have already come to the realisation that nuclear is a clean and bankable source of energy and
are looking to nuclear to solve their energy requirements.
The World Nuclear Association reports that there are currently 55 reactors under construction, mostly in the
Asian region where electricity demand is rapidly growing, with a further 90 plants on order or planned. The
Association further reports that the majority of countries with existing nuclear power programs are planning,
or already building, new power reactors, and about 30 countries are considering, planning or starting nuclear
energy programs.
In addition, there exist a number of countries who had previously closed nuclear reactors that are now seeking
to rapidly restart them.
France, which currently derives about 70% of its electricity generation from nuclear power, and historically
been Europe’s biggest electricity exporter, principally to the UK and Italy; currently has approximately half of
its nuclear reactors shut down and has committed to restarting all this winter, with closed reactors reopening
each week from October.
Japan too is restarting reactors with plans to bring seven more nuclear reactors online in the short term. The
total number of reactors online will then be 17 out of a total of 33 operable units.
Prime Minister Fumio Kishida stated in August 2022 that “the Japanese government will explore development
and construction of new reactors as the country aims to avoid new strains on power grids that buckled under
heavy demand this summer, and to curb the nation’s reliance on energy imports. Nuclear power and renewables
are essential to proceed with a green transformation - Russia’s invasion changed the global energy situation.”
There is now growing recognition that nuclear power makes a significant contribution to the
mitigation of carbon dioxide gas emissions.
According to a report released by the Parliament of Australia titled “Australia’s uranium – greenhouse friendly
fuel for an energy hungry world”:
Nuclear power plants emit no carbon dioxide gas emissions at point of generation and very small
quantities over the whole nuclear fuel cycle, from uranium mining through to waste disposal.
Nuclear power represents the only current reliable and proven means of limiting increased emissions
while meeting the world’s voracious appetite for energy.
While there is a role for renewables and certainly for greater use of efficiency measures, renewables
are limited in their application by being intermittent, diffuse and pose significant energy storage
problems. Renewables also require substantial backup generation, which needs to be provided by
conventional baseload power sources. Promised baseload contributions from geothermal, are yet to
be developed on any scale. For the generation of continuous, reliable supplies of electricity on a large
scale, the only current alternative to fossil fuels is nuclear power.
The report also observed that electricity generation is the largest contributor of CO2 emissions at 40 per cent
of the global total and is also the fastest growing. The report concluding that it is imperative that emissions
from this sector be reduced, particularly in fast-growing, developing nations such as China.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
3
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
A submission to the House of Representatives Standing Committee on Environment and Energy, Nuclear for
Climate stated that climate change is the most significant threat to our planet today - that nuclear power has
demonstrated, by precedent, that:
•
it can be deployed quickly,
• operate economically,
• massively reduce carbon emissions, and that
•
for the benefit of the planet, nuclear must be included in the climate conversation as it is a proven and
efficient mitigation technology that is available today.
In-Situ Recovery (ISR) Mining of Uranium Deposits
The In Situ Recovery (ISR) mining process has been proven globally, and domestically, to be the most cost
effective and environmentally acceptable method of uranium extraction. This makes deposits, such as the
100% Cauldron-owned Bennet Well Uranium Deposit, highly valued in their amenability for this low-cost form
of uranium mining. According to recent reports, ~57% of global uranium production is sourced from ISR mines.
The process of ISR mining involves leaving the ore in situ - i.e., where it is in the ground - and recovering
the minerals from the host sediment formation by drilling wells into the deposit and using pre-defined wells
to inject native groundwater fortified with a complexing agent and oxidant to dissolve the uranium inside the
target horizon. The “pregnant” solution is then pumped out of a neighbouring drillhole to a processing plant
at the surface. The uranium-rich solution is treated to recover the uranium oxide mineral, thereby ensuring
minimal ground disturbance has occurred. Furthermore, there are no tailings or waste rock dumps generated.
In order for a deposit to be amenable to the ISR style of mining, it must be:
•
sandstone-hosted, ideally in a palaeochannel or palaeovalley system,
•
laterally extensive,
•
sub-horizontal,
•
tabular in shape,
• hosted within permeable sands,
• hosted in saturated conditions,
•
capped by impermeable aquiclude (e.g., clay formation),
•
shallow in depth (to mineralisation) from the ground surface, and
•
contained by an impermeable formation beneath the orebody (e.g., hard granite basement).
In Australian ISR mines (Beverley, Four Mile, and Honeymoon) the oxidant used is hydrogen peroxide and the
complexing agent is sulfuric acid.
Techniques for ISR have evolved to the point where it is a controllable, safe, and environmentally benign
method of mining that, by strict legislation, operates under specific, highly regulated and monitored operational
controls. Due to the low capital costs involved (relative to conventional mining) it can often be a more effective
method of mining low-grade uranium deposits.
4
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
YANREY PROJECT, WESTERN AUSTRALIA
The Yanrey Project comprises a collection of twelve granted exploration tenements over an area of 1,245 km2
in northwest Western Australia (Figure 1), one of which secures the Bennet Well Uranium Deposit (Bennet
Well). The project is prospective for sandstone-style uranium mineralisation capable of extraction by in-situ
recovery mining techniques.
Bennet Well, and consequently the Yanrey Uranium Project, has been the subject of a significant amount of
exploration since the early 2000’s by Cauldron.
Figure 1: Project Location Map
Since the announcement on 20 June 2017 of a ban on new uranium mines in Western Australia by Minister
Bill Johnston, Cauldron has only been able to undertake limited fieldwork activities within the Yanrey Uranium
Project. The policy regarding uranium exploration in Western Australia remains uncertain, and Cauldron
continues to regularly seek advice from the Minister and the Department of Mines, Industry Regulation and
Safety (DMIRS).
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
5
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
Bennet Well
The Bennet Well Uranium Deposit is located within exploration licence E08/1493 (Figure 2). The mineralisation
at Bennet Well is a shallow accumulation of uranium, hosted in unconsolidated sands (less than 100 m downhole
depth) in Cretaceous sedimentary units of the North Carnarvon Basin. The Bennet Well deposit is comprised of
four spatially separate domains; namely Bennet Well East, Bennet Well Central, Bennet Well South and Bennet
Well Channel.
Concurrently, Cauldron completed Phase 1 of a developmental research study in 2017 with the CSIRO and
Minerals Research Institute of Western Australia (MRIWA) to prove the ISR amenability of Bennet Well1. Based
on the highly promising results of the Phase 1 work, Phase 2 involves the completion of a Field Leach Trial (FLT)
to quantify the ISR potential of the orebody. Due to the Western Australian State Labor government’s ban on
uranium mining, however, the FLT would not be approved by the Department of Mines, Industry Regulation
and Safety (DMIRS). Despite regular attempts and correspondence, the Government has yet to clarify its
policy on uranium exploration. Cauldron will continue to state its case with DMIRS and the WA Government.
Figure 2: Location of the Bennet Well Uranium Deposit within the greater Yanrey Uranium Project
1
6
Refer to ASX Announcement dated 25 May 2017
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
Bennet Well Mineral Resource
A Mineral Resource (JORC 2012) Estimate for Bennet Well was completed by Ravensgate Mining Industry
Consultants and was fully reported in ASX announcement dated 17 December 2015, including geological maps
and cross sections, supporting and explanatory statements and metadata as required under the reporting
standards of JORC 2012. No work on the Mineral Resource has been completed since, and therefore remains
unchanged for the current reporting period.
The mineralisation at Bennet Well is a shallow accumulation of uranium, hosted in unconsolidated sands close
to surface (less than 100 m downhole depth) in Cretaceous sedimentary units of the Ashburton Embayment.
The Bennet Well deposit is comprised of four spatially separate domains; namely Bennet Well East, Bennet
Well Central, Bennet Well South and Bennet Well Channel.
The Mineral Resource (JORC 2012) estimate is:
·
·
Inferred Resource: 16.9 Mt at 335 ppm eU3O8 for contained uranium-oxide of 12.5 Mlb (5,670t)
at 150 ppm cut-off;
Indicated Resource: 21.9 Mt at 375 ppm eU3O8 for contained uranium-oxide of 18.1 Mlb (8,230t)
at 150 ppm cut-off;
· Total Mineral Resource: 38.9 Mt at 360 ppm eU3O8, for total contained uranium-oxide of 30.9
Mlb (13,990t) at 150 ppm cut-off.
Work Completed
During the financial year ended 30 June 2022, the Company completed a passive seismic program over
Exploration Licence E08/3088, situated approximately 10 kilometres northwest of Bennet Well. Several
unusual basement complexities were identified as being similar to those observed at Bennet Well and as such
are considered to be highly prospective targets for future drill-testing.
GOLD
Like no other commodity, gold has held the fascination of human societies since the beginning of recorded
time. Empires and kingdoms were built and destroyed over gold. As societies developed, gold was universally
accepted as a satisfactory form of payment. In short, history has given gold a power surpassing that of any
other commodity on the planet, and that power has never disappeared.
That fascination with gold has been at extreme levels in recent times, with the price of gold presently trading
at around US$1,670/oz, not far off the high of US$2,070/oz that occurred in August 2020. Translated into A$
terms it has ranged between A$2,500/oz and A$3,000/oz.
The “Golden Triangle” is a colloquial term for a highly productive central portion of the Victorian gold province,
containing the Bendigo (>22.4 million ounces of gold production), Ballarat (>13.1 million ounces of gold
production), Castlemaine (>4.2 million ounces of gold production) and Stawell (>2.6 million ounces of gold
production)2 goldfields.
The central portion of the Victorian gold province, one of the world’s most productive and until recently, largely
forgotten gold producing areas, accounts for more than 2% of world gold production and 30% of Australian
gold production since 1850.
The geology of Victoria is split into twelve zones, each having a distinct stratigraphic, structural and lithological
style. Of these zones, the Ballarat (central), Melbourne (eastern) and Stawell zones (western) are historically
the most productive for gold (Figure 3):
There have been numerous significant recent exploration successes in the Golden Triangle, including but not
limited to, the finding of significant additional gold resources at the Fosterville Gold Mine that has led to it
becoming one of the world’s highest-grade and most profitable gold mines.
Cauldron is looking to have success at the historic Blackwood Gold Project located in the heart of the Golden
Triangle.
2
exploration/minerals/metals/gold
Source: Department of Earth Resources, Victoria website: www.earthresources.vic.gov.au/geology-
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
7
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
BLACKWOOD GOLDFIELD PROJECT, VICTORIA
Cauldron holds a 51% joint venture interest in the Blackwood Gold Project located south-east of Daylesford,
in the highly prospective Central Victorian Goldfields that surround Ballarat.
The Project, which comprises Exploration Licence 5479, covers an area of ~24 km2 and secures the most
significant portion of the highly prospective Blackwood Goldfield. The Exploration Licence is granted and in
good standing with a licence expiry date of 23 March 2024.
Under the joint venture agreement, Cauldron has stepped earn-in rights to increase its ownership from 51%
to 80%, upon achievement of milestones, as follows: (i) CXU to earn 65% upon achievement of a Mineral
Resource (JORC 2012) containing at least 300,000 ounces of gold; (ii) CXU to earn 80% upon achieving mining
production of gold at a rate of at 10,000 ounces per annum.
The Blackwood Gold Project incorporates the largely forgotten historic Blackwood Goldfield. From 1864 to
1960, it produced about 218,000 ounces of gold largely from hard-rock underground mining of gold-rich
quartz reef structures. Gold was won down to a depth of 100m below surface, with very little mining activity
below a depth of 150m. The Sultan mine is the deepest in the goldfield with production levels at 230 m below
ground with its shaft reaching 274m depth, still in payable gold; and produced over 73,000 ounces of gold at
an average grade of 28 g/t. The project area contains in excess of 250 underground workings; with the largest
known producers shown in Table 1.
Figure 3: Victorian geological zones with goldfield coloured by production (modified from the original,
source: GeoVic3)
Table 1: Gold production various reef sources in Blackwood Goldfield
Mine
North Sultan
Sultan
Sultana
Mounters
Homeward Bound
Bog Hill
Annie Laurie
Grace Edgerton
British Lion
Worked
Depth [m]
243
Ore
Mined [t]
Gold Pro-
duced [oz]
Grade
[g/t Au]
231
61
134
20
62
76
62
82,000
19,070
1,090
620
73,310
1,530
9,910
450
3,180
270
2,850
1,100
28
16
80
Source: Report titled “The Gold Mines of Blackwood” by Erik Norum, Consultant Geologist, August 2018
8
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
Most mining activity on reef structures at Blackwood halted at shallow depths. Cessation of mining in many
cases was not due to depletion of mineralisation but due to other factors such as inability to cope with high
ground water flows in the underground workings or inability to raise the capital for development work.
Another way to represent the undiscovered potential of Blackwood is to compare this goldfield against its
peers elsewhere in the Central Victorian Goldfields. Using an averaged depth of mining from all workings at
Blackwood, historical gold production figures from the Project were compared with production from current
operational goldfields such as Ballarat and Bendigo. Cognisant of the fact that the existing mines have been
extended to depths far greater than any historical mining at Blackwood, the Company normalised the known,
recent production figures to the same depth of mining as the average for the Project. Results strongly suggest
that the Blackwood Goldfield holds far more remaining potential for the same level of bonanza grades and
tonnages as its neighbours in the surrounding region (Figure 4).
Figure 4: Comparison Chart of Blackwood Historical Goldfield versus Current Producing Goldfields
Work Completed During the Year
Work during the year has primarily focused on drilling previously unmined sections of the Annie Laurie lode,
accessed from underground via the Tyrconnel Adit with no surface impact to the surrounding forest. Efforts
were initially hampered by a blockage in the Adit which required Cauldron to undertake significant remedial
and rectification works to ensure safe operations. The particular style of underground drilling required to
adequately test the targets from within the Adit also required a specific set of drilling skills that are extremely
rare within Australia. As such, Cauldron struggled to find the right drilling personnel until June 2022.
As a result, drilling only commenced in earnest in recent months.
In the period up to the date of this report, a total of seventeen (17) drill holes have been completed, with all of
the initial ten (10) holes failing to intersect the target reef due to a variety of issues that include abandonment
due to lack of sample recovery, intersecting unknown voids that exist from historical mining activity, and
targeting issues due to historical mapping errors. Holes eleven through seventeen have been far more
successful at intersecting the target reef and better assays to date include:
0.35m @ 1.06 g/t Au from 19.50m (BKD011)
0.60m @ 20.1 g/t Au from 20.80m (BKD014)
0.80m @ 19.2 g/t Au from 20.20m; including 0.30m @27.0 g/t Au (BKD015)
The results confirm the high grade nature of gold mineralisation consistent with historical mining activities at
Blackwood, while the mixed success rate is typical of exploration for high-grade, narrow-vein style gold in the
Central Victorian goldfields.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
9
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
SAND
Sand is by far the largest globally mined commodity (Figure 5), outstripping the shipments of coal, iron ore
and grain.
The international sand and aggregate markets in 2017 were worth an estimated US$4.5 billion. By 2030, its
worth is estimated to grow to US$60 billion, representing a growth rate of 5.5 per cent per year.
Figure 5: Estimated Global Annual Bulk Commodity Production in billion tonnes (2018/2019)[Source CXU]
In late December 2020, Cauldron announced the acquisition of a 100% ownership interest in a number of
river sand tenements located at the mouths of the Carnarvon, Onslow and Derby rivers in Western Australia,
collectively covering an area of about 286 km2.
In June 2021, ownership of four sand licences (EL08/2328, EL08/2329 and EL08/2462 and miscellaneous
licence L08/71) located at the mouth of the Ashburton River in Onslow were transferred to Cauldron. The other
four sand licences still remain to be transferred to Cauldron to complete the transaction.
Background
Cauldron has secured licences located on three of the largest river systems crossing the coast in central to
northern Western Australia. These licences cover the mouths of the Fitzroy River at Derby, the Ashburton
River at Onslow and the Gascoyne River at Carnarvon.
The Fitzroy, Ashburton and Gascoyne rivers drain a huge area of granitic rocks commencing from their
respective headwaters all the way to the project areas, at the mouths of the rivers. Every time there is a
flooding event somewhere in the catchment area, sand is deposited into the project area, replenishing the
supply of sand and re-establishing the river mouth in its original pristine condition.
Sand is by far the largest globally mined commodity, outstripping the shipments of coal, iron ore and grain.
(Source: UN Environment 2019; Sand and Sustainably, Finding new solutions for Environmental Governance
of global sand resources.) The global market for construction aggregates in 2020 was worth an estimated
US$393 billion, and by 2030 its worth is estimated to grow to US$560 billion; a growth rate of 5.2 per cent
per year.
(Source: www.researchandmarkets.com/reports/5140975/construction-aggregates-global-market).
Cauldron’s sand tenement interests at Onslow have been challenged by a third party who is opposing the
transfer of the main mining lease to Cauldron. The initial hearing found in favour of Cauldron and its co-
defendants with the applicant seeking leave of appeal which was granted. An injunction preventing transfer
to Cauldron remains in place whilst the matter is before the Court of Appeal. The matter was heard in October
2022 and the decision is pending.
10
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
OPERATIONS REPORT
Work Completed During the Year
Due to the Company’s focus on the Blackwood Gold Project during the year, only limited work has been
undertaken with respect to the Sand projects.
Subsequent to year end, in August 2022, Mineral Resources Limited announced its decision to proceed with
its estimated A$3 billion development of its Onslow iron ore project in the West Pilbara region of Western
Australia which will involve construction of a private haul road, port infrastructure and accommodation. This
project is expected to give rise to increased demand for the supply of sand, cement and aggregates locally
with Cauldron well placed to assist.
Competent Person Statements
Exploration Results
The information contained in this report that relates to exploration results for the Blackwood Gold project is provided
by Ms Asha Rao, who is a Member of both the AusIMM and the Australasian Institute of Geoscientists (AIG). Ms
Rao has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration,
and to the activity being undertaken to qualify as a Competent Person, as defined in the JORC 2012 edition of
the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Ms Rao has more than 16 years
of experience and is employed full-time as Exploration Manager for Cauldron Energy Ltd. Ms Rao consents to the
inclusion in this report of the matters based on this information in the form and context in which they appear.
Mineral Resources
The information in this report that relates to the Mineral Resource for the Bennet Well Uranium Prospect is based
on information compiled by Mr Jess Oram who was the Executive Director, Chief Executive Officer and Exploration
Manager of Cauldron at the time, and a member of the Australasian Institute of Geoscientists.
The information in this report that relates to sampling techniques and data, exploration results, geological
interpretation and Exploration Targets, Mineral Resources or Ore Reserves for the Yanrey Project, the Rio Colorado
Project and the Blackwood Gold Project is also based on information compiled by Mr Oram.
Mr Oram has sufficient experience of relevance to the styles of mineralisation and the types of deposits under
consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of
the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Mr Oram consents to the inclusion in this report of the matters based on information in the form
and context in which it appears.
Forward looking statements
Information in this report may contain forward-looking statements. Forward-looking statements include, but are not
limited to, statements concerning Cauldron Energy Limited’s business plans, intentions, opportunities, expectations,
capabilities and other statements that are not historical facts. Forward-looking statements include those containing
such words as could-plan-target-estimate-forecast-anticipate-indicate-expect-intend-may-potential-should or
similar expressions. Such forward-looking statements are not guarantees of future performance and involve known
and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control
of the Company, and which could cause actual results to differ from those expressed in this report. Because actual
results might differ materially to the information in this report, the Company does not make, and this announcement
should not be relied upon as, any representation or warranty as to the accuracy, or reasonableness, of the underlying
assumptions and uncertainties.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
11
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
Your directors present their report together with the financial report on the Group consisting of Cauldron
Energy Limited (“Cauldron” or “the Company”) and its controlled entities (“the Group”) for the financial
year ended 30 June 2022 and the auditors’ report thereon.
In order to comply with the provisions of the Corporations Act 2001, the directors report as follows.
DIRECTORS
The names and particulars of the directors of the Company in office at the date of this report are:
Mr Ian Mulholland
Non-Executive Director and Chairman
Appointed 31 May 2022
B.Sc (Hons), M.Sc, FAIG
Mr Mulholland has had a long and distinguished career in the exploration and mining industry holding senior
technical and executive roles for over 30 years. Mr Mulholland was Chief Geologist of Summit Resources
during which time Summit completed a resource upgrade on the Valhalla uranium deposit and acquired a
portfolio of uranium projects in Queensland; ultimately being taken over by ASX-listed Paladin Resources for
~$44 million. Subsequently, Mr Mulholland was Exploration Manager at Anaconda Nickel during the period that
Anaconda grew its lateritic nickel ore resource from 300 million tonnes to over 1.3 billion tonnes; and Technical
Director of Conquest Mining during the period in which Conquest acquired the Mt Carlton silver-gold project
with Conquest subsequently merging with Evolution Mining for a ~$320 million valuation. Most recently, Mr
Mulholland was founding Managing Director of ASX-listed Rox Resources for 15 years. Since retiring from
Rox Resources in April 2019, Mr Mulholland has operated a highly successful personal geological and mining
consultancy.
Directorships of listed companies held within the last
3 years:
Nil
Interest in Shares:
Interest in Options:
1,000,000 Fully Paid Ordinary Shares
Nil
Mr Michael Fry
Executive Director
Appointed on 7 September 2022
Mr Fry is an experienced public company director and senior executive who has been involved in the mineral
resources mining and exploration industries for over twenty years.
Mr Fry has a background in accounting and corporate advice having worked with KPMG (Perth) where he
qualified as a Chartered Accountant, Deloitte Touche Tohmatsu (Melbourne) and boutique corporate advisory
practice Troika Securities Ltd (Perth). From 2006 to 2011, Mr Fry was the Chief Financial Officer and Finance
Director at Swick Mining Services Limited, a publicly listed drilling services provider contracting to the mining
industry in Australia and North America.
Mr Fry is Chief Financial Officer and Company Secretary of ASX-listed companies Globe Metals & Mining Limited
(ASX:GBE), VDM Group Limited (ASX: VMG) and company secretary of unlisted public company GLX Digital
Limited. Mr Fry is the current Chief Financial Officer and Company Secretary of Cauldron.
Directorships of listed companies held within the last
3 years:
VDM Group Limited, 3 June 2011 to present
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
66,667 fully paid ordinary shares
Nil
Nil
12
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
Mr Qiu Derong
Non-Executive Director
Appointed on 6 November 2009
Mr Qiu is a highly experienced industrialist with more than 30 years’ experience in the architecture, construction
and real estate industries in China as well as over 20 years of experience in the management of enterprises
and projects throughout the country.
Mr Qiu has a MBA obtained from the Oxford Commercial College, a joint program operated by Oxford University
in China.
Directorships of listed companies held within the last
3 years:
Nil
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
47,544,710 Fully Paid Ordinary Shares
Nil
1,000,000
Ms Judy Li
Non-Executive Director
Appointed on 17 December 2014
Ms Judy Li has over 10 years of extensive international trading experience in hazardous chemical products.
She has also been involved in international design works for global corporates and government clients while
working for Surbana that has been jointly held by two giant Singapore companies - CapitaLand and Temasek
Holdings. Throughout her career, Judy has contributed to building tighter relationship between corporates and
governments. Judy earned her masters degree in art with Honors Architecture from University of Edinburgh
in the United Kingdom.
Directorships of listed companies held within the last
3 years:
Nil
Interest in Shares:
Interest in Options:
Nil
Nil
Interest in Performance Rights:
1,000,000
Mr Chengchong Zhou
Non-Executive Director
Appointed on 2 May 2017
Mr Chengchong Zhou is an experienced financial analyst in the materials and energy sector. In his career, Mr
Zhou covers an extensive list of junior to mature mining companies and has developed a good understanding
of industry financing. Mr Zhou received his Bachelor of Science in Economics degree from Wharton Business
School in 2013.
Directorships of listed companies held within the last
3 years:
Nil
Interest in Shares:
Interest in Options:
Nil
Nil
Interest in Performance Rights:
1,000,000
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
13
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
Mr Simon Youds
Executive Director and Chairman
Appointed 15 March 2019; Resigned 7 September 2022
B.Eng (Mining), MBA, AUSIMM Member
Mr Youds has over 30 years experience in the exploration and mining industry across a range of commodities.
Mr Youds is the former Chief Executive Officer of African Iron, an iron ore explorer in the Republic of Congo,
where he facilitated a A$388 million deal for its purchase by Exxaro Resources, and more recently was a
director and CEO of ASX-listed company Vector Resources Ltd (under administration). He. In other highlights,
Mr Youds was Managing Director, Australia, of Consolidated Minerals Limited, which owned and operated the
Woodie Woodie and Coobina manganese and chromite mining operations, located in the Pilbara region of
Western Australia. Mr Youds also spent five years working as a member of the WMC team at Olympic Dam
in South Australia developing the world’s largest uranium deposit. Further in Africa Mr Youds held various
operating and development roles at the Bibiani Gold Mine in Ghana and the Bulyanhulu and North Mara Gold
Mines in Tanzania. Mr Youds has a Bachelor of Engineering (B.Eng) in Mining and holds an MBA degree from
Deakin University, Victoria, and is a member of the Australasian Institute of Mining and Metallurgy.
Directorships of listed companies held within the last
3 years:
Vector Resources Ltd (under administration)
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
4,172,864 Fully Paid Ordinary Shares
Nil
4,000,000
Mr Jess Oram
Non-Executive Director
Non-executive Director from 16 July 2021. Prior to that, Executive Director from 1 January 2018.
Resigned 31 May 2022
B.Sc, AIG member
From April 2014 until 1 January 2018, Mr Oram served the Company as Exploration Manager. On 1 January
2018 Mr Oram was promoted to Chief Executive Officer and Executive Director. On 15 July 2021, Mr Oram
resigned as Chief Executive Officer of the Company in order to take up a position with ASX-listed company
Paladin Energy Limited but remained with the Company as a non-executive director. Mr Oram has over 25
years’ experience in mineral exploration in a wide variety of geological terrains and resource commodities
with an accomplished track record in establishing and leading the exploration function of several companies.
In uranium, Mr Oram was Chief Exploration Geologist for Heathgate Resources Pty Ltd where he was involved
in mining feasibility studies of the Four Mine Uranium deposits and ‘team leader’ of a group of geoscientists
involved in the discovery of the Pepegoona Uranium, Pannikan Uranium and Pannikan West Uranium deposits.
Mr Oram has a Bachelor of Science (B.Sc), Geology major from the University of Queensland and is a member
of the Australian Institute of Geoscientists (AIG).
Directorships of listed companies held within the last
3 years:
Force Commodities Limited
(February 2019 to Feb 2021)
Interest in Shares:
Interest in Options:
Nil
Nil
Interest in Performance Rights:
2,000,000
Directors have held office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARY
Michael Fry was appointed Company Secretary of Cauldron on 11 April 2019. Michael holds a Bachelor of
Commerce degree from the University of Western Australia and has worked in the capacity of chief financial
officer and company secretary of ASX listed companies for over 20 years.
14
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
REMUNERARION REPORT (AUDITED)
DIRECTORS’ REPORT
CAULDRON ENERGY LIMITED
This remuneration report, which forms part of the directors’ report, sets out information about the remuneration
of Cauldron’s directors for the financial year ended 30 June 2022.
KEY MANAGEMENT PERSONNEL
Key Management Personnel includes:
Ian Mulholland (Non-executive Chairman; appointed 31 May 2022)
Simon Youds (Executive Director – resigned 7 September 2022)
Jess Oram (Non- Executive Director – resigned 31 May 2022)
Qiu Derong (Non-executive Director)
Judy Li (Non-executive Director)
Chenchong Zhou (Non-executive Director)
The named persons held their positions for the duration of the financial year and up to the date of this
report, unless otherwise indicated.
REMUNERATION POLICY
The remuneration policy of Cauldron has been designed to align director objectives with shareholder and
business objectives by providing a fixed remuneration component which is assessed on an annual basis in line
with market rates.
Cauldron’s board believes the remuneration policy to be appropriate and effective in its ability to attract and
retain appropriately skilled directors to run and manage the Group, as well as create goal congruence between
directors and shareholders.
During the year, the Company did not have a separately established remuneration committee. The Board is
responsible for determining and reviewing remuneration arrangements for the executive and non-executive
directors. The Board assesses the appropriateness of the nature and amount of remuneration of such officers
on a yearly basis by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from retention of a high quality board. Due to the size of the business, a
remuneration consultant is not engaged in making this assessment.
The board policy is to remunerate non-executive directors at market rates for comparable companies for time,
commitment and responsibilities. The executive director determines payments to the non-executive directors
and reviews their remuneration annually, based on market practice, duties and accountability.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by
shareholders at the Annual General Meeting. Shareholders approved the maximum total aggregate fixed sum
per annum to paid to non-executive directors be set at $750,000 at the 2015 Annual General Meeting. Fees for
non-executive directors are not linked to the performance of the Group. However, to align directors’ interests
with shareholder interests, the directors are encouraged to hold shares in the Company.
REMUNERATION REPORT AT AGM
The 2021 remuneration report received positive shareholder support at the Annual General Meeting of the
Company held on 25 January 2022 whereby of the proxies received 84.01% voted in favor of the adoption of
the remuneration report.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
15
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
REMUNERARION REPORT (AUDITED)
COMPANY PERFORMANCE AND SHAREHOLDER WEALTH
Below is a table summarizing key performance and shareholder wealth statistics for the Group over the last
five financial years.
Financial Year
Profit/(loss) after tax
Earnings/(loss) per share
Company Share Price
$
(cents)
(cents)
30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
(1,854,948)
(669,504)
(1,634,616)
(3,197,797)
173,299
(11,954,682)
(0.37)
(0.16)
(0.47)
(0.97)
0.05
(3.83)
0.7
3.9
1.6
1.7
3.0
3.4
The remuneration policy has been tailored to increase goal congruence between shareholders and directors.
This has been achieved by the issue of performance rights to directors to encourage the alignment of personal
and shareholder interest.
KMP REMUNERATION
Key Management Personnel (KMP) remuneration for the year ended 30 June 2022 was:
30 JUNE
2022
SHORT-TERM
BENEFITS
LONG-
TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
(vi)
TOTAL
Remuneration
performance
based
Directors
Ian
Mulholland
(i)
Simon
Youds (ii)
Jess Oram
(iii)
Qiu Derong
(iv)
Judy Li (v)
Chenchong
Zhou (vi)
TOTAL
Salary,
Fees &
Leave ($)
Long
Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits
($)
Other ($)
$
$
%
5,000
240,000
109,603
36,000
36,000
36,000
-
-
-
-
-
-
462,603
-
-
-
-
-
-
-
-
-
-
983
-
-
-
-
-
-
-
-
-
2,500
7,500
38,667
278,667
33.34%
13.88%
(21,452)
89,134
(24.07)%
9,667
9,667
9,667
45,667
21.17%
45,667
21.17%
45,667
21.17%
983
-
48,716 512,302
9.51%
(i)
Mr Mulholland was appointed as a Director and Non-Executive Chairman on 31 May 2022. In his
capacity as Director and Non-Executive Chairman, Mr Ian Mulholland is entitled to a fixed fee of $60,000
per annum from the date of his appointment. The Company has entered into a consulting agreement for the
provision of these services. Amounts included in this table represent accrued fees.
(ii)
In his capacity as an Executive Director, Mr Simon Youds is entitled to a fixed fee of $48,000 per
annum from the date of his appointment (15 March 2019) for provision of his services a director and a variable
fee of $100 per hour to a maximum of 160 hours per month (i.e. up to a maximum of $16,000 per month) for
assistance on a day-to-day basis in supervising and managing work at the Company’s projects. The Company
has entered into a consulting agreement with Youds Mining Consulting Pty Ltd, a company controlled by Mr
Simon Youds, for the provision of these services.
16
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
REMUNERARION REPORT (AUDITED)
DIRECTORS’ REPORT
CAULDRON ENERGY LIMITED
(iii)
Mr Jess Oram was employed in the capacity of Chief Executive Officer and Executive Director of the
Company up to his resignation on 15 July 2022 and thereafter as a Non-Executive Director of the Company
until his resignation on 31 May 2022. In the capacity of Chief Executive Officer and Executive Director Mr
Oram was entitled to an annual salary of $213,000 plus superannuation, and in the capacity of Non-Executive
Director Mr Oram was entitled to an annual fee of $36,000.
(iv)
In his capacity as Non-Executive Director, Mr Qiu Derong is entitled to a fee of $36,000 per annum.
The Company has entered into a consulting agreement for the provision of these services. Amounts included
in this table represent accrued fees.
(v)
In her capacity as Non-Executive Director, Ms Judy Li is entitled to a fee of $36,000 per annum. The
Company has entered into a consulting agreement for the provision of these services. Amounts included in this
table represent a combination of paid and accrued fees.
(vi)
In his capacity as Non-Executive Director, Mr Chenchong Zhou is entitled to a fee of $36,000 per
annum. A consulting agreement for the provision of services is yet to be executed. Amounts included in this
table represent accrued fees.
Key Management Personnel (KMP) remuneration for the year ended 30 June 2021 was:
30 JUNE
2021
SHORT-TERM
BENEFITS
LONG-
TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
(vi)
TOTAL
Remunera-
tion
performa-
nce based
Long
Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits
($)
Other ($)
Directors
Simon
Youds
Salary,
Fees &
Leave ($)
135,673
Jess Oram
213,000
Qiu Derong
Judy Li
Chenchong
Zhou
TOTAL
36,000
36,000
36,000
456,673
-
-
-
-
-
-
-
-
3,809
20,235
-
-
-
-
-
-
3,809
20,235
KMP INTEREST IN SECURITIES
Shareholdings of Key Management Personnel
30 JUNE 2022
Balance
Issued
Received on
option exercise
Directors
Ian Mulholland
Qiu Derong
Simon Youds
1 July 2021
-
47,544,710
4,172,864
51,717,574
-
-
-
-
Option-holdings of Key Management Personnel
$
$
%
38,667
174,340
22.18%
19,333
256,377
7.54%
9,667
9,667
45,667
45,667
21.17%
21.17%
9,667
45,667
21.17%
87,001
567,718
15.32%
Net Change
Balance
Other
30 June 2022
1,000,000
-
-
1,000,000
47,544,710
4,172,864
1,000,000
52,717,574
-
-
-
-
-
-
-
-
-
There were no options held by key management personnel at 30 June 2022 (30 June 2021: nil), nor were
there any options granted, exercised or lapsed during the year ended 30 June 2022 (2021: nil).
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
17
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
REMUNERARION REPORT (AUDITED)
Performance Rights of Key Management Personnel
Performance Rights are granted to incentivise KMP for increases in the Company’s value as determined by the
underlying market price of its shares, exploration results, and Company performance.
As at the date of this report, performance rights on issue were as follows:
Issue date
Expiry date
Exercise price
16 September 2020
10 August 2025
Nil
Number
9,000,000
The Performance Rights were valued on the date of grant with the following factors and assumptions used to
determine their fair value:
Grant date
Period (years)
Share price on
Grant Date
Measurement
date
Probability
Valuation per
right
11 August 2020
5
$0.029
21 May 2020
100%
$0.029
Vesting Conditions:
a.
period of not less than 20 consecutive trading days on which the Shares have actually traded;
The volume weighted average price of the Shares as quoted on ASX exceeds $0.05 each day for a
b.
Gross Proceeds exceed $250,000 in any financial year; or
c.
Gold Project having a contained gold mass of at least 300,000 ounces at a cut-off grade of 2g/t.
The discovery of an “Inferred Mineral resource” (as that term is defined in the Code) at the Blackwood
The performance rights held be key management personnel as at the date of this report are:
30 JUNE 2022
Balance
Issued
Directors
Simon Youds (i)
Jess Oram (ii)
Qiu Derong
Judy Li
Chenchong Zhou
1 July 2021
4,000,000
2,000,000
1,000,000
1,000,000
1,000,000
9,000,000
Can-
celled/
Converted
Balance
30 June 2022
%
Vested
% Unvested
-
-
-
-
-
-
-
-
-
-
-
-
4,000,000
2,000,000
1,000,000
1,000,000
1,000,000
9,000,000
0%
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
(i)
which they were issued, the performance rights are to be cancelled.
Mr Simon Youds has resigned effective 7 September 2022. Pursuant to the terms and conditions under
(ii)
they were issued, the performance rights are to be cancelled.
Mr Jess Oram has resigned effective 21 May 2022. Pursuant to the terms and conditions under which
KMP OTHER
Loans to Key Management Personnel
There were no loans to key management personnel during the year.
Other Transactions with Key Management Personnel
There were no other transactions with key management personnel that occurred during the year not
described above.
End of Audited Remuneration Report.
18
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
REMUNERARION REPORT (AUDITED)
DIRECTORS’ REPORT
CAULDRON ENERGY LIMITED
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year was mineral exploration.
There were no significant changes in the nature of the Group’s principal activities during the financial year.
OPERATING RESULTS
The loss of the Group after providing for income tax amounted to $1,854,948 (30 June 2021: $669,504 loss).
REVIEW OF OPERATIONS
Cauldron has project interests in Western Australia (Yanrey Uranium Project and WA Sands Project and Victoria
(Blackwood Gold Project) prospective for uranium, gold and sand, the locations of which are set out on the
map below. Refer Operations Review on Pages 3 to 11.
BUSINESS STRATEGIES AND PROSPECTS FOR THE FORTHCOMING YEAR
The Company is involved in the mineral exploration industry.
The Yanrey Uranium Project and the Blackwood Gold Project will be the primary focus of cauldron’s activity in
the upcoming year.
The quantum of work that Cauldron will be able to undertake on the Yanrey Uranium Project will be largely
dependent upon the Western Australian Mines Department. The Company is hopeful of a change in policy from
the Western Australian State Labor government which is presently opposed to uranium mining.
In addition, Cauldron aims to progress its WA Sands Project through the sale of sand, crushed rock and a
concrete-supply business, if demand is sufficient.
SIGNFICANT CHANGES IN STATE OF AFFAIRS
There have been no changes in the state of affairs of the Group other than those disclosed in the review of
operations and those stated below.
September 2021 Placement
On 8 September 2021, Cauldron completed a private placement resulting in the issue of 35,294,118 shares at
$0.034 (3.4 cents) per share each (Shares), raising a total of $1,200,000 before costs.
Participants in the Placement also received a free attaching option on a 1 for 2 basis exercisable at $0.05 (5.0
cents) with an expiry of 30 November 2023 (Unlisted Options), resulting in the issue of 17,647,059 unlisted
options.
The Lead Manager received a placement fee of 6%, settled in cash.
March 2022 Placement
On 14 March 2022, Cauldron completed a private placement resulting in the issue of 44,117,647 shares at
$0.017 (1.7 cents) per share each (Shares), raising a total of $750,000 before costs.
Participants in the Placement also received a free attaching option on a 1 for 3 basis exercisable at $0.034
(3.4 cents) with an expiry of 15 March 2024 (Unlisted Options), resulting in the issue of 14,705,882 unlisted
options.
The Lead Manager received a placement fee of 6%, settled in cash, and an incentive fee of 10 million options
on the same terms as participants in the placement.
In total, 44,117,647 Shares and 24,705,882 Unlisted Options were issued.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial years, except for the following.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
19
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
Receipt of Loan of $500,000 from Director Qiu Derong
On 16 August 2022, Cauldron received $500,000 by way of a short term unsecured converting loan. The key
terms of the loan facility are as follows:
Loan Amount:
A$500,000
Interest Rate:
8% per annum
Default Interest Rate: 20% per annum
Term:
6 months
Repayment Terms:
per share, subject to shareholder approval.
Repayable in cash or by the issue of fully paid ordinary shares at a price of 0.7 cents
Under the terms of the loan agreement, the Company will commence preparations for a general meeting of
shareholders at which shareholders will vote on the conversion of the new loan into shares at the price of 0.7
cents per share.
Resignation of Mr Simon Youds as a Director
On 7 September 2022, Mr Simon Youds resigned as a Director of the Company and as an executive.
Appointment of Mr Michael Fry as a Director
On 7 September 2022, Mr Michael Fry was appointed as a Director of the Company.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that
it complies with all regulations when carrying out any exploration work.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant date
23 December 2019
16 September 2020
6 November 2020
8 November 2021
Expiry date
Exercise price
Number
31 December 2021
16 September 2023
30 November 2023
30 November 2023
($0.03)
($0.05)
($0.05)
($0.05)
6,833,398
6,000,000
43,354,839
17,647,059
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of the Company or of any other body corporate.
During the financial year and up to and including the date of this report, nil ordinary shares were issued on
the exercise of options.
CORPORATE GOVERNANCE
Throughout FY22, Cauldron’s corporate governance arrangements were consistent with the Corporate
Governance Principles and Recommendations published by the ASX Corporate Governance Council (ASX
Principles).
Cauldron’s 2022 Corporate Governance Statement is available at http://cauldronenergy.com.au/ our-company/
corporate-governance/. The Corporate Governance Statement outlines details in relation to Cauldron’s values,
its Board, Board Committees, risk management framework and financial reporting, diversity and inclusion,
key corporate governance policies and shareholder engagement. Cauldron’s website also contains copies
of Cauldron’s Board and Committee Charters and key policies and documents referred to in the Corporate
Governance Statement.
20
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
Due to the size of the Company, the Board of Directors performs the role of the Audit Committee and
Remuneration Committee.
The number of meetings held during the year and the number of meetings attended by each Director whilst
in office are:
Director
Ian Mulholland 1
Simon Youds
Jess Oram 2
Qiu Derong
Judy Li
Chenchong Zhou
1: appointed on 31 May 2022
2: resigned on 31 May 2022
Directors’ meetings
Held while in office
Attended
1
3
2
3
3
3
1
3
2
3
3
3
Due to distance and differing time zones, and more recently the COVID-19 pandemic, Board matters have
been resolved by way of circular resolution with the Board being kept abreast by management of developments
within the business by regular written and verbal communications.
The Company does not have a formally constituted audit committee or remuneration committee as the board
considers that the Company’s size and type of operation do not warrant such committees.
INDEMNIFICATION AND INSURANCE OF OFFICERS
During the year the Company paid premiums in respect of a contract insuring all the directors and officers
of the Company against liabilities incurred by the directors and officers that may arise from their position as
directors or officers of the Company.
In accordance with normal commercial practice, the disclosure of the total amount of premiums under and
the nature of the liabilities covered by the insurance contract is prohibited by a confidentiality clause in the
contract.
Except for the above, the Company has not indemnified or made an agreement to indemnify any person who
is or has been an officer or auditor of the Company against liabilities incurred as an officer or auditor of the
Company.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2022 has been received and is included on
page 16 of the annual report.
NON-AUDIT SERVICES
There were no non-audit services provided by the Company’s auditor BDO Audit (WA) Pty Ltd.
This report of the Directors, incorporation the Remuneration Report is signed in accordance with a resolution
of the Board of Directors.
Mr Ian Mulholland
Non-Executive Chairman
30 September 2022
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
21
CAULDRON ENERGY LIMITED
AUDITOR’S INDEPENDENCE DECLARATION
DIRECTORS’ REPORT
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF CAULDRON ENERGY
LIMITED
As lead auditor of Cauldron Energy Limited for the year ended 30 June 2022, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Cauldron Energy Limited and the entities it controlled during the
period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth
30 September 2022
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
22
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
Annual Financial Report 2022
Annual Financial Report 2022 presented in the following pages.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
23
CAULDRON ENERGY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes
3 (a)
3 (b)
10
23
4
7
2022
$
844
1,396
(158,023)
(347,919)
(229,749)
(95,290)
(141,530)
(75,467)
(115,343)
(27)
(2,443)
(333,263)
(2,311)
(48,715)
(307,108)
2021
$
1
92,550
(77,029)
(384,254)
(170,848)
(116,888)
(106,738)
(230,171)
(35,045)
-
(285,655)
1,138,932
(2,636)
(87,000)
(404,724)
(1,854,948)
(669,504)
-
-
(1,854,948)
(669,504)
Continuing Operations
Revenue
Other Income
Administration expenses
Employee benefits expenses
Directors’ fees
Compliance and regulatory expenses
Consultancy expenses
Legal fees
Occupancy expenses
Travel expenses
Exploration expenditure
Net fair value gain/(loss) on financial assets
Depreciation and amortisation
Share based payments expense
Impairment losses
(Loss)/profit for the year before income tax
Income tax expense
(Loss)/profit for the year from continuing operations attribut-
able to members of the Company
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss:
Exchange difference arising on translation of foreign operations
-
-
Total comprehensive (loss)/profit for the year attributable to
members of the Company
(1,854,948)
(669,504)
(Loss)/profit per share
Basic (loss)/profit per share (cents per share)
Diluted (loss)/profit per share (cents per share)
20
20
(0.37)
(0.37)
(0.16)
(0.16)
The above consolidated statement of comprehensive income is to be read in conjunction with the
accompanying notes.
24
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CAULDRON ENERGY LIMITED
Notes
2022
$
2021
$
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Total current assets
Non-current assets
Exploration and evaluation
Plant and equipment
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Employee entitlements
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Non-Controlling Interests
Accumulated losses
Total equity
8
9
10
12
13
14
15
16
17
19
235,738
77,800
359,560
673,098
3,614,106
8,000
3,622,106
4,295,204
1,087,481
22,052
1,109,533
1,109,533
3,185,671
60,061,504
5,218,950
779,448
375,221
77,951
1,517,787
1,970,959
2,243,619
2,311
2,245,930
4,216,889
956,863
101,121
1,057,984
1,057,984
3,158,905
58,269,504
5,129,235
779,448
(62,874,231)
(61,019,282)
3,185,671
3,158,905
The above consolidated statement of financial position is to be read in conjunction with the
accompanying notes.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
25
CAULDRON ENERGY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Grant received
Notes
2022
$
2021
$
(1,106,205)
(1,206,305)
844
9,886
1
1
Net cash flows used in operating activities
25 (a)
(1,095,475)
(1,206,304)
Cash flows from investing activities
Purchase of plant and equipment
Payments for exploration and evaluation
Proceeds from sales of equity investments
Net cash flows (used in)/ investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue costs
Net cash flows (used in)/from investing activities
10
16
16
Net decrease in cash and cash equivalents
Effects of exchange rate changes on cash
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
8
(8,000)
(1,680,038)
811,030
(877,008)
1,950,000
(117,000)
1,833,000
(139,483)
-
375,221
235,738
-
(694,547)
279,761
(898,453)
1,600,000
-
1,600,000
(21,090)
-
396,311
375,221
The above statement of cash flows is to be read in conjunction with the
accompanying notes.
26
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CAULDRON ENERGY LIMITED
Issued Capital
Accumulated
Losses
Share Based
Payment
Reserve
Foreign
Currency
Translation
Reserve
Non-
Controlling
Interests
Total Equity
$
$
$
$
$
$
Balance at 1 July 2020
56,380,921
(60,349,778)
5,818,014
(1,614,458)
-
3,158,905
Loss attributable to
members of the parent
entity
Other comprehensive
loss
Total comprehensive
Loss for the year
Transactions with
owners in their capacity
as owners
Acquisition of Blackwood
Project
Performance rights
-
-
-
-
-
Shares issued during the
period, net of costs
1,888,583
(669,504)
-
(669,504)
-
-
-
-
-
-
-
87,000
838,679
-
-
-
-
-
-
-
(669,504)
-
-
-
(669,504)
779,448
779,448
-
-
87,000
2,727,262
Balance at 30 June 2021
58,269,504
(61,019,282)
6,743,693
(1,614,458)
779,848
3,158,905
Balance at 1 July 2021
58,269,504
(61,019,282)
6,743,693
(1,614,458)
779,848
3,158,905
-
-
-
-
-
-
-
(1,854,949)
-
-
-
-
-
-
(1,854,949)
46,2150
2,500
1,833,000
-
(1,854,949)
-
-
-
(1,854,949)
-
-
-
Loss attributable to
members of the parent
entity
Other comprehensive
loss
Total comprehensive
Loss for the year
Transactions with
owners in their capacity
as owners
Performance rights
Options
Shares issued during
the period, net of costs
1,792,000
-
-
-
-
-
46,215
2,500
41,000
Balance at 30 June 2022
60,061,504
(62,874,231)
6,833,408
(1,614,458)
779,848
3,185,671
The above statement of changes in equity is to be read in conjunction with the
accompanying notes.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
27
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ........................................................... 29
SEGMENT INFORMATION ................................................................................................. 37
REVENUE AND OTHER INCOME ......................................................................................... 39
IMPAIRMENT LOSSES ...................................................................................................... 39
REMUNERATION OF AUDITORS ......................................................................................... 40
KEY MANAGEMENT PERSONNEL ........................................................................................ 40
INCOME TAX .................................................................................................................. 40
CASH AND CASH EQUIVALENTS ........................................................................................ 41
TRADE AND OTHER RECEIVABLES ..................................................................................... 42
10.
FINANCIAL ASSETS ......................................................................................................... 43
11.
LOANS RECEIVABLE ........................................................................................................ 43
12.
EXPLORATION AND EVALUATION EXPENDITURE .................................................................. 44
13.
PLANT AND EQUIPMENT .................................................................................................. 44
14.
TRADE AND OTHER PAYABLES .......................................................................................... 44
15.
PROVISIONS .................................................................................................................. 44
16.
ISSUED CAPITAL ............................................................................................................ 45
17.
RESERVES ..................................................................................................................... 46
18.
OPTIONS OVER UNISSUED SHARES .................................................................................. 46
19.
ACCUMULATED LOSSES ................................................................................................... 47
20.
EARNINGS/(LOSS) PER SHARE ......................................................................................... 47
21.
CONTROLLED ENTITIES ................................................................................................... 48
22.
RELATED PARTY INFORMATION ......................................................................................... 48
23.
SHARE BASED PAYMENTS ................................................................................................ 49
24.
COMMITMENTS .............................................................................................................. 50
25.
CASH FLOW INFORMATION .............................................................................................. 51
26.
FINANCIAL RISK MANAGEMENT ........................................................................................ 52
27.
CONTIGENT ASSETS AND LIABILITIES .............................................................................. 56
28.
EVENTS SUBSEQUENT TO REPORTING DATE ...................................................................... 57
29.
PARENT ENTITY DISCLOSURES ......................................................................................... 57
28
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
1.
a.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial report covers Cauldron Energy Limited (“Cauldron”) and its controlled entities (“the Group”) for
the year ended 30 June 2022 and was authorised for issue in accordance with a resolution of the directors on
30 September 2022.
Cauldron is a public listed company, incorporated and domiciled in Australia.
Cauldron is a for-profit entity for the purposes of preparing these financial statements.
The financial report is a general purpose financial report that has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has been prepared on an
accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value
of selected non-current assets, financial assets and financial liabilities.
The financial report is presented in Australian dollars.
b.
Compliance with IFRS
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.
c.
Adoption of New and Revised Accounting Standards
New or amended Accounting Standards and Interpretations adopted
The Group has considered all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2022.
The Company is in the process of determining the impact of the above on its financial statements. The
Company has not elected to early adopt any new Standards or Interpretations.
d.
(i)
Principles of Consolidation
Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
A list of controlled entities is contained in note 21 to the financial statements.
All inter-group balances and transactions between entities in the Group, including any unrealised profits or
losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with those adopted by the Parent Entity.
(ii)
Joint arrangements
Under AASB 11, Joint Arrangements investments in joint arrangements are classified as either joint operations
or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather
than the legal structure of the joint arrangement.
Joint operations
Cauldron Energy Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint
operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have
been incorporated in the financial statements under the appropriate headings.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
29
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Non-Controlling Interests
The Group recognised non-controlling interests in an acquired entity either at fair value or at the non-controlling
interest’s proportionate share of the acquired entity’s net assets. This decision is made on an acquisition-by
acquisition basis. For the non-controlling interests in the Blackwood Goldfield Project, the Group elected to
recognise the non-controlling interests in at its proportionate share of the net assets acquired.
Control of Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Group and they are deconsolidated from the date that control
ceases.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement
of financial position respectively.
e.
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s companies is measured using the currency of the primary
economic environment in which that company operates. The consolidated financial statements are presented
in Australian dollars which is the parent entity’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated
at the rate of exchange ruling at the reporting date. Non-monetary items measured at historical cost continue
to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value
are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of profit
or loss and other comprehensive income, except where deferred in equity as a qualifying cash flow or net
investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the
extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in
the statement of profit or loss and other comprehensive income.
Group companies
The financial results and position of foreign operations whose functional currency is different from the Group’s
presentation currency are translated as follows:
·
·
·
assets and liabilities are translated at year-end exchange rates prevailing at the end of the reporting
period;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
statement of profit or loss and other comprehensive income in the period in which the operation is disposed.
f.
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
(i)
part of the cost of acquisition of an asset or as part of an item of expense; or
where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as
30
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
(ii)
for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is
classified as operating cash flows.
g.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred
tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current
tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also
result where amounts have been fully expensed but future tax deductions are available. No deferred income
tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end
of the reporting period. Their measurement also reflects the manner in which management expects to recover
or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax
asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred
tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
Tax consolidation
Cauldron Energy Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under tax consolidation legislation. Each entity in the Group recognises its own current and deferred
tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the
subsidiaries are immediately transferred to the head entity. The Group notified the Australian Taxation Office
that it had formed an income tax consolidated group to apply from 1 July 2009.
h.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of
cash, which are subject to an insignificant risk of changes in value and have an original maturity of three
months or less.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
31
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it’s carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial
recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the
financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial
asset has become credit impaired or where it is determined that credit risk has increased significantly, the
loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
32
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
j.
Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes
expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or
part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the
future to their present value as at the date of acquisition.
Depreciation is provided on plant and equipment. Depreciation is calculated on a diminishing value basis so as
to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated
residual value. The estimated useful lives, residual values and depreciation method are reviewed at the end
of each annual reporting period.
The depreciation rates used for each class of depreciable assets for the 30 June 2022 year are:
Class of Fixed Asset
Plant and equipment
Office furniture and equipment
Motor vehicle 33.3%
Depreciation Rate
33.3%
33.3%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the statement of profit or loss and other comprehensive income. When revalued
assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained
earnings.
k.
Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through the successful development of the area or where activities in the area have not yet reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the
decision to abandon the area is made. When production commences, the accumulated costs for the relevant
area of interest are amortised over the life of the area according to the rate of depletion of the economically
recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
l.
Impairment of Non-Financial Assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent
cash flows are grouped together to form a cash-generating unit.
m.
R&D Tax Incentive
Refundable tax incentives are accounted for as government grants under AASB 120 Accounting for Government
Grants and Disclosure of Government Assistance because the directors consider this policy to provide more
relevant information to meet the economic decision-making needs of users, and to make the financial
statements more reliable. The Group has determined that these incentives are akin to government grants
because they are not conditional upon earning taxable income.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
33
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
n.
Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the Group during the reporting period which remains unpaid. The balance is recognised
as a current liability with the amount being normally paid within 30 days of recognition of the liability.
o.
Leases
At the inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use-asset and a corresponding liability are recognised by the Group where the Group is a
lessee. However, all contracts that are classified as short-term leases (ie with a remaining lease term of 12
months or less) and leases of low-value assets are recognised as an operating expense on a straight line over
the term of the lease.
Initially the lease is measured at the present value of the lease payments still to be paid at the commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily
determined, the Group uses the incremental borrowing rate.
The right-of-use-assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any indirect costs. The subsequent measurement
of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use-assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest.
o.
Revenue Recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the Group: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time
value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue
when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of
the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as
discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent
events. Such estimates are determined using either the ‘expected value’ or ‘most likely amount’ method.
The measurement of variable consideration is subject to a constraining principle whereby revenue will only
be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with
the variable consideration is subsequently resolved. Amounts received that are subject to the constraining
principle are recognised as a refund liability.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
34
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
p.
Provisions and Employee Benefits
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measures at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the reporting date. The discount rate used to determine the present value
reflects current assessments of the time value of money and the risks specific to the liability. The increase in
the provision resulting from the passage of time is recognised in finance costs.
Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of
exploration activities undertaken, it is probable that an outflow of economic benefits will be required to settle
the obligation, and the amount of the provision can be measured reliably. The estimated future obligation
includes the costs of removing facilities, abandoning sites and restoring the affected areas.
Employee leave benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
wholly within 12 months of the reporting date are recognised in respect of employees’ services up to the
reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
q.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
r.
Share based payments
Equity-settled share based payments are measured at fair value at the date of grant. Fair value is measured by
use of the Black-Scholes options pricing model. The expected life used in the model has been adjusted, based
on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest.
For cash-settled share-based payments, a liability equal to the portion of the goods and services received is
recognised at the current fair value determined at each reporting date.
s.
Critical accounting judgements, estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year
are discussed below.
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are carried forward in respect of an area that has not at balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in or relating to, the area of interest are continuing.
Asset Acquisition not Constituting a Business
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 in an asset purchase transaction and no deferred tax
will arise 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 and transaction costs of the
acquisition will be included in the capitalised cost of the asset.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
35
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted
environmental legislation, and the directors understanding thereof. At the current stage of the Group’s
development and its current environmental impact the directors believe such treatment is reasonable and
appropriate.
Income taxes
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant
judgement is required in determining the worldwide provision for income taxes. There are many transactions
and calculations undertaken during the ordinary course of business for which the ultimate tax determination
is uncertain. The Group estimates its tax liabilities based on the Group’s understanding of the tax laws in the
relevant jurisdictions. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such difference will impact the current and deferred income tax assets and liabilities in the
period in which such determination is made.
In addition, the Group has recognised deferred tax assets relating to carried forward tax losses to the extent
there are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation
authority and the same subsidiary against which the unused tax losses can be utilised. However, utilisation
of the tax losses also depends on the ability of the entity to satisfy certain tests at the time the losses are
recouped.
Performance Rights
Performance rights issued to Directors under the Performance Rights Plan are measured by reference to the
fair value of the equity instruments at the date on which they were granted using share price of the Company
on grant date.
Share-based payments recognised may require an estimation of reasonable expectations about achievement
of future vesting conditions. Vesting conditions must be satisfied for the director to become entitled to receive
ordinary shares.
Vesting conditions include services conditions, which require the director to complete a specified period of
service, and performance conditions, which require the specified performance targets to be met.
The Company recognises a share-based payment expense amount for the services received during the vesting
period based on the best available estimate of the number of equity instruments expected to vest and shall
revise that estimate, if necessary, if subsequent information indicates that the number of equity instruments
expected to vest differs from previous estimates. On vesting date, the Company shall revise the estimate to
equal the number of equity instruments that ultimately vested.
The achievement of future vesting conditions is reassessed at each reporting period.
t.
Comparative Figures
Comparative figures have been adjusted to conform to changes in presentation for the current financial year.
u.
Operating Segments
An operating segment is a component of an entity that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components
of the same entity), whose operating results are regularly reviewed by the entity’s chief operating decision
maker to make decisions about resources to be allocated to the segment and assess their performance and
for which discrete financial information is available. This includes start-up operations which are yet to earn
revenues.
Operating segments have been identified based on the information provided to the chief operating decision
makers – being the board of directors.
Information about other business activities and operating segments that do not meet the quantitative
criteria set out in AASB 8 “Operating Segments” are combined and disclosed in a separate category called
“other.”
36
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
v.
Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the normal course of business.
As at 30 June 2022, the Group had cash and cash equivalents of $235,738 and had negative net working
capital of $436,435. The Group incurred a loss for the year ended 30 June 2022 of $1,854,948 (30 June 2021:
$669,504 loss) and net cash outflows used in operating activities and investing activities totalling $1,095,475
(30 June 2021: $1,206,304).
The ability of the Group to continue as a going concern is dependent on the Group securing additional debt
and/or equity funding to meet its working capital requirements in the next 12 months. These conditions
indicate the existence of a material uncertainty that may cast a significant doubt about the Group’s ability
to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its
liabilities in the normal course of business.
At the date of this report, the directors are satisfied there are reasonable grounds to believe that the Group
will be able to continue its planned operations and the Group will be able to meet its obligations as and when
they fall due, for the following reasons:
·
·
·
·
the Company has demonstrated its ability to raise funds through equity issues by way of share capital
raising completed in September 2021 and March 2022 - refer Note 16;
the Group holds a portfolio of investments valued at $359,560 at 30 June 2022, which may be sold to
fund ongoing cash requirements of the Company;
subsequent to year end, Cauldron received a short term loan facility of $500,000 from Director Derong
Qiu to assist in funding its short term working capital requirements – refer Note 28; and
the Directors are of the opinion that the use of the going concern basis of accounting is appropriate
as they are confident in the ability of the Group to be successful in securing additional funds through
further debt or equity issues as and when the need to raise working capital arises.
Should the Group not be able to continue as a going concern, it may be required to realise its assets and
discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those
stated in the financial statements. The financial report does not include any adjustments relating to the
recoverability and classification of recorded asset amounts or liabilities that might be necessary should the
Group not continue as a going concern and meet its debts as and when they become due and payable.
2.
SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and used
by the board of directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. During the year, the Group operated in one business segment (for primary reporting)
being mineral exploration and principally in two geographical segments (for secondary reporting) being
Australia and Argentina.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the board of directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Group.
Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised as the consideration received net of
transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not
adjusted to fair value based on market interest rates. This policy represents a departure from that applied to
the statutory financial statements.
Segment assets
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets and
intangible assets have not been allocated to operating segments.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
37
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the
operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as
a whole and are not allocated to specific segments. Segment liabilities include trade and other payables and
certain direct borrowings.
Other items
The following items of revenue, expense, assets and liabilities are not allocated to the Mineral Exploration
segment as they are not considered part of the core operations of that segment:
administration and other operating expenses not directly related to uranium exploration
interest income
interest expense
subscription fun ds
loans to other entities
financial assets at fair value through profit or loss
Segment Information
Mineral Exploration
Other
Total
2022
2021
2022
2021
2022
2021
$
$
$
$
$
$
Revenue
Interest received
Other
Gain on disposal of financial
assets
Total segment revenue and
other income
Segment net operating profit/
(loss) after tax
Segment net operating profit/
(loss) after tax includes the
following significant items:
Net fair value gain/(loss) on
financial assets
Impairment of loans and
receivables
Impairment of exploration
assets
Depreciation
Employee benefits expense
Directors fees
Consultancy expenses
Legal fees
-
-
-
-
844
1
844
1
1,396
34,080
1,396
34,080
-
58,470
-
58,470
2,240
92,551
2,240
92,551
-
(333,263)
1,138,932
(333,263)
1,138,932
-
-
-
-
-
-
(307,108)
(357,637)
-
-
-
(47,087)
-
(47,087)
-
(307,108)
(357,637)
-
-
-
-
-
-
-
-
-
-
(2,311)
(2,636)
(2,311)
(2,636)
(347,919)
(384,254)
(347,919)
(384,254)
(229,749)
(170,848)
(229,749)
(170,848)
(141,530)
(106,738)
(141,530)
(106,738)
(75,467)
(230,171)
(75,467)
(230,171)
Tenement expenditure
(2,443)
(285,655)
-
-
(2,443)
(285,655)
Share based payments
expense
Other expenses
Total segment net operating
profit /(loss) after tax
-
-
-
(48,715)
(87,000)
(48,715)
(87,000)
-
(368,684)
(228,961)
(368,684)
(228,961)
(309,551)
(643,292)
(1,545,398)
(26,212)
(1,854,949)
(669,504)
38
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
Segment Information
Mineral Exploration
Other
Total
2022
2021
2022
2021
2022
2021
$
$
$
$
$
$
Segment assets
Segment assets include:
Exploration assets
3,614,106
2,243,619
-
-
3,614,106
2,243,619
Financial assets
Other assets
-
-
-
-
359,560
1,517,787
359,560
1,517,787
321,538
455,483
321,538
455,483
3,614,106
2,243,619
681,098
1,973,270
4,295,204
4,216,889
Segment liabilities
-
-
(1,109,533)
(1,057,985)
(1,109,533)
(1,057,984)
Segment net assets
3,614,106
2,243,619
(428,435)
915,285
3,185,671
3,158,905
Segment information by
geographical region
The analysis of the location of
net assets is as follows:
Australia
Argentina
3.
REVENUE AND OTHER INCOME
(a) Revenue
Interest received
Total revenue
(b) Other income
Gain on disposal of financial assets at fair value through profit or loss
Grant received
Other
Total other income
4.
IMPAIRMENT LOSSES
Impairment of exploration and evaluation expenditure
Impairment of loans and receivables
Total impairment losses
3,189,648
3,162,882
(3,977)
(3,977)
3,185,671
3,158,905
2022
$
2021
$
844
844
1
1
-
9,886
(8,490)
1,396
58,470
34,080
-
92,550
307,108
357,637
-
47,087
307,108
404,724
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
39
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.
REMUNERATION OF AUDITORS
Paid or payable to BDO (WA) Pty Ltd for:
Audit and review of financial statements
Total auditor’s remuneration
6.
KEY MANAGEMENT PERSONNEL
37,923
37,923
35,923
35,923
Names and positions held of key management personnel in office at any time during the 2021/2022 financial
year were:
Name
Ian Mulholland
Simon Youds
Jess Oram
Qiu Derong
Judy Li
Chenchong Zhou
Non-Executive Director and Chairman
Position
Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Refer to the Remuneration Report contained in the Directors’ Report for details of the shares, rights and
options held and remuneration paid or payable to each member of the Group’s key management personnel
for the year ended 30 June 2022.
Refer to Note 23 for share-based payments issued to Directors during the year.
7.
INCOME TAX
(a) The components of tax expense comprise:
Current tax (expense)/benefit
Deferred tax (expense)/benefit
Total
2022
$
2021
$
-
-
-
-
-
-
(b) The prima facia tax (benefit)/expense on (loss)/profit
from ordinary activities before income tax is reconciled to
the income tax as follows:
Accounting (loss)/profit before tax
Total accounting (loss)/profit before tax
(1,854,948)
(669,504)
(1,854,948)
(669,504)
Prima facie income tax (expense)/benefit @ 30.0%
(556,485)
(200,851)
Tax effect of:
Non-deductible expenses
Tax losses utilised
Deductible capitalised exploration costs
Realised capital (gain)/loss on investments
Unrealised capital (gain)/loss on investments
48,772
33,035
(336,731)
(219,989)
4,180
(17,541)
99,979
(341,680)
3,409
1,143
40
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
Non-assessable non-exempt foreign related expenditure
Section 40-880 deduction
-
-
(1,800)
(10,224)
Losses and other deferred tax balances not recognised during the period
736,876
757,907
Aggregate income tax expense
-
-
(c) Recognised deferred tax balances
Deferred tax balances have been recognised in respect of the fol-
lowing:
Deferred tax assets
Employee entitlements
Other receivables
Other payables
Capital raising costs
Tax losses
Deferred tax assets not recognised
Total deferred tax assets
Deferred tax liabilities
Exploration
Deferred tax liabilities not recognised
Total deferred tax liabilities
Net recognised deferred tax assets/(liabilities)
8.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Cash and cash equivalents
6,616
26,096
30,336
26,096
193,419
126,334
-
-
5,801,250
5,295,505
(6,027,381)
(5,478,271)
-
-
428,864
219,989
(428,864)
(219,989)
-
-
-
-
2022
$
2021
$
235,738
375,221
235,738
375,221
Reconciliation to cash flow statement
For the purposes of the cash flow statement, cash and cash equivalents
comprise the following at 30 June:
Cash at bank and in hand
Cash held in trust
Cash for reconciliation of cash flow statement
235,738
375,221
-
-
235,738
375,221
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
41
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9.
TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Prepayments
Allowance for expected credit losses (2021: Provision for impairment of
receivables) (a)
2022
$
2021
$
159,787
159,938
5,000
5,000
(86,987)
(86,987)
Total current trade and other receivables
77,800
77,951
(a) Provision for non-recovery of trade receivables
Balance at 1 July
Impairment of receivable
Balance at 30 June
Allowance for expected credit losses
(86,987)
(86,987)
-
-
(86,987)
(86,987)
The Group has recognised a loss of $nil, in profit or loss in respect of the expected credit losses for the year
ended 30 June 2022 for its Trade and Other Receivables (30 June 2021: $nil).
Credit risk
The Group has no significant concentration of credit risk with respect to any single counterparty or group of
counterparties.
The following table details the Group’s trade and other receivables exposure to credit risk with ageing analysis.
Amounts are considered ‘past due’ when the debt has not been settled, with the terms and conditions agreed
between the Group and the counter party to the transaction. Receivables that are past due are assessed for
impairment is ascertaining solvency of the debtors and are provided for where there are specific circumstances
indicating that the debt may not be fully recoverable by the Group.
Trading terms
Gross amount
Past due and im-
paired
Within initial trade terms
2022
Trade receivables
159,787
86,987
2021
Trade receivables
159,938
86,987
72,800
72,951
42
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
2022
$
2021
$
10.
FINANCIAL ASSETS
Financial assets at fair value through profit or loss (listed investments)
354,300
1,512,527
Financial assets at fair value through profit or loss (unlisted investments)
5,260
5,260
Total financial assets
Movements:
Opening balance
Disposal of equity securities
Realised fair value gain/(loss) through profit or loss
Fair value gain/(loss) through profit or loss
Closing balance
359,560
1,517,787
1,517,787
600,146
(811,030)
(279,761)
(13,935)
58,470
(333,262)
1,138,932
359,560
1,517,787
Financial assets comprise investments in the ordinary issued capital of various entities. There are no fixed
returns or fixed maturity dates attached to these investments. The fair value of listed investments is calculated
with reference to current market prices at balance date.
11.
LOANS RECEIVABLE
Caudillo Resources SA (a)
Allowance for expected credit loss (a)
Total loan receivables
1,406,771
1,406,771
(1,406,771)
(1,406,771)
-
-
The Group’s wholly owned subsidiary Jakaranda Minerals Limited (“Jakaranda”) previously provided a
a)
draw-down facility (“First Loan”) up to $650,000 to Caudillo Resources SA (“Caudillo”), which is included in this
balance. The First Loan and interest (LIBOR + 2%) was required to be repaid in cash by 21 February 2013,
or Jakaranda may elect to convert the First Loan into an 80% interest in the issued capital of Caudillo. At 30
June 2014, this draw-down facility had been utilised. The Group intends to elect to convert the First Loan into
an 80% equity interest in Caudillo, and the execution of this is currently in the process of being completed.
The Group agreed to provide further draw-down facilities from Jakaranda to Caudillo for $650,000 and $150,000
respectively (“Second Loan” and “Third Loan”). The Second Loan and Third Loan and interest (LIBOR + 2%)
is repayable, at the election of Caudillo, by way of:
(i)
cash; or
(ii)
subject to Caudillo and Jakaranda obtaining all necessary shareholder and regulatory approvals, the
issue to Jakaranda of fully paid ordinary shares in the capital of Caudillo based on a deemed issue price per
Caudillo share of 100 (Argentinean pesos).
Until such time as the First Loan, Second Loan and Third Loan are repaid or converted to an equity interest in
Caudillo the Group has conservatively provided for the non-recovery of the loans in full. As a result of this, an
impairment expense of Nil (30 June 2019: $Nil) has been recognised in the Statement of Profit or Loss and
Other Comprehensive Income.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
43
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12.
EXPLORATION AND EVALUATION EXPENDITURE
2022
$
2021
$
Exploration and evaluation expenditure
14,074,840
12,406,555
Exploration and evaluation expenditure - provision for impairment
(10,460,734)
(10,162,935)
Net carrying amount exploration and evaluation
3,614,106
2,243,619
Reconciliation of carrying amounts
Balance at 1 July
2,243,619
-
Acquisition costs capitalised- Blackwood Gold Project (Note 16)
-
1,590,710
Exploration expenditure capitalised – Blackwood Gold Project
Acquisition costs capitalised- WA Sands Project
Exploration costs capitalised- WA Sands Project
Exploration expenditure incurred- Yanrey Uranium Project
1,122,437
-
248,050
307,108
105,706
547,204
-
357,637
Impairment of exploration expenditure - Yanrey Uranium Project
(307,108)
(357,637)
Balance at 30 June
3,614,106
2,243,609
13.
PLANT AND EQUIPMENT
At cost
Accumulated depreciation
44,793
36,793
(36,793)
(34,483)
Net carrying amount exploration and evaluation
8,000
2,311
Reconciliation of carrying amounts
Balance at 1 July
Additions
Depreciation expense
Balance at 30 June
14.
TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Total trade and other payables
2,311
8,000
(2,311)
8,000
4,947
-
(2,636)
2,311
100,004
987,478
157,705
799,158
1,087,482
956,863
Trade payables are non-interest bearing and are normally settled on 30 day terms.
15.
PROVISIONS
Current
Employee benefits
Total provisions
22,052
22,052
101,121
101,121
44
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
2022
2021
No. Shares
No. Shares
2022
$
2021
$
16.
ISSUED CAPITAL
Share capital
Ordinary shares fully paid
535,411,277 455,999,512 60,061,504 58,269,504
Opening balance at 1 July
455,999,512 376,289,835 58,269,504 56,380,921
Project Acquisition - Blackwood
Project Acquisition – WA Sands
Share Placement
Share Placement – Lead Manager
Share Placement – Sep 2021
Share Placement – Mar 2022
Share issue costs – placement fees
Share issue costs – value of options
granted (Note 17)
-
-
-
-
17,000,000
8,000,000
51,612,903
3,096,774
-
-
-
527,000
316,000
1,600,000
96,000
35,294,118
44,117,647
-
-
-
-
-
-
1,200,000
750,000
-
-
(117,000)
(96,000)
(41,000)
(554,417)
Closing balance at 30 June
535,411,277 455,999,512 60,061,504 58,269,504
Terms and Conditions
Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to one
vote per share at shareholder meetings. In the event of winding up, ordinary shareholders rank after all other
shareholders and creditors and are fully entitled to any proceeds of liquidation.
Capital risk management
Capital managed by the Board includes shareholder equity, which was $60,061,504 at 30 June 2022 (2021:
$58,269,504). The Group’s objectives when managing capital are to safeguard its ability to continue as a
going concern, so that it may continue to provide returns to shareholders and benefits to other stakeholders.
The Company’s capital includes ordinary share capital and financial liabilities, supported by financial assets.
Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the Group’s
capital risk management is to balance the current working capital position against the requirements of the
Group to meet exploration programmes and corporate overheads.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
45
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17.
RESERVES
Reserves
Share based payment reserve (a)
Foreign currency translation reserve (b)
Total reserves
(a) Share based payment reserve
2022
$
2021
$
6,833,409
6,743,694
(1,614,459)
(1,614,459)
5,218,950
5,129,235
Reserve balance at beginning of year
6,743,694
5,818,015
Performance rights – allocation of value
Options issued to vendor of Blackwood Gold Project
Options issued as part of November 2020 Placement
Options issued as part of March 2022 Placement
Options issued to KMP – refer Note 23
46,215
-
-
41,000
2,500
87,000
284,262
554,417
-
-
Reserve balance at end of year
6,833,409
6,743,694
(b) Foreign currency translation reserve
Reserve balance at beginning of year
(1,614,459)
(1,614,459)
Foreign currency exchange differences arising on translation of
foreign operations
-
-
Reserve balance at end of year
(1,614,459)
(1,614,459)
Exchange differences relating to the translation from the functional currencies of the Group’s foreign controlled
entities into Australian dollars are recognised directly in the foreign currency translation reserve.
18.
OPTIONS OVER UNISSUED SHARES
Unissued ordinary shares of the Company under option at 30 June 2022 were:
Grant date
Expiry date
Exercise price
Number
16 September 2020
16 September 2022
16 September 2020
16 September 2023
6 November 2020
30 November 2023
8 November 2020
30 November 2023
(0.03)
(0.05)
(0.05)
(0.05)
10,000,000
6,000,000
43,354,839
17,647,059
77,001,898
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of the Company or of any other body corporate.
During the financial year and up to and including the date of this report, nil ordinary shares were issued on
the exercise of options.
46
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
19.
ACCUMULATED LOSSES
Accumulated Losses
Accumulated losses at 1 July
Net (loss)/profit attributable to members
Balance at 30 June
20.
EARNINGS/(LOSS) PER SHARE
2022
$
2021
$
(62,874,231)
(61,019,282)
(61,019,282)
(60,349,778)
(1,854,948)
(669,504)
(62,874,231)
(61,019,282)
(a)
(Loss)/Profit used in calculating (loss)/earnings per
share
Net loss from continuing operations attributable to ordinary equity
holders of the parent
Net loss attributable to ordinary equity holders of the parent for basic
earnings
(1,854,948)
(669,504)
(1,854,948)
(669,504)
(b)
Weighted average number of shares outstanding during
the year used in the calculation of:
No.
No.
Basic earnings/(loss) per share
497,578,884
428,515,023
Diluted earnings/(loss) per share
497,578,884
428,515,023
Basic earnings/(loss) per share
Continuing operations
Diluted earnings/(loss) per share
Continuing operations
Cents per share
Cents per
share
(0.37)
(0.16)
(0.37)
(0.16)
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
47
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21.
CONTROLLED ENTITIES
Details of Cauldron Energy Limited’s subsidiaries are:
Name
Shares
Country of
Incorporation
Date/Company
of Incorporation
Ownership Inter-
est
Investment Car-
rying Amount
Ronin Energy Ltd
Raven Minerals Ltd *
Australia
Australia
24 April 2006
24 April 2006
Cauldron Energy (Bermuda)
Limited
Bermuda
2 February 2012
Cauldron Energy (SL) Limited
Sierra Leone
12 March 2012
Blackwood Goldfield Joint
Venture Pty Ltd
Australia
3 April 2020
Anthill Concrete Pty Ltd
Australia
15 April 2021
Total Investment
*de-registered during the year ended 30 June 2022
22.
RELATED PARTY INFORMATION
Ord
Ord
Ord
Ord
Ord
Ord
2022
2021
2022
2021
%
100
-
100
100
51
%
100
100
100
100
51
100
100
$
5
-
1
1
2
2
$
5
5
1
1
2
2
18
18
Balances between the company and its subsidiaries which are related parties of the company, have been
eliminated on consolidation and are not disclosed in this note. Note 21 provides information about the Group’s
structure including the details of the subsidiaries and the percentage held in each subsidiary by the holding
company.
Loans with Related Parties
There were no loans made to Cauldron Energy Limited by directors and entities related to them during the year
ended 30 June 2022 (30 June 2021: nil).
Subsequent to year end, on 16 August 2022, Cauldron received a loan of $500,000 from Director Qiu Derong
by way of a short term unsecured converting loan. Refer Note 28 for further information.
The ultimate parent
The ultimate parent of the Group is Cauldron Energy Limited which is based in and listed in Australia.
Significant shareholders
Qiu Derong holds a significant interest of 8.84% in the issued capital of Cauldron Energy at 30 June 2022 (30
June 2021: 12.64%). Mr Qiu Derong is a director of Cauldron.
Compensation of Key Management Personnel of the Group
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or
payable to each member of the Group’s key management personnel (“KMP”) for the year ended 30 June 2022.
The key management personnel compensation comprised of:
Short term employment benefits
Long term employment benefits
Post-employment benefits
Share-based payments
Total key management personnel remuneration
48
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
2022
$
2021
$
462,603
456,673
-
983
48,715
512,302
3,809
20,235
87,001
567,718
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
23.
SHARE BASED PAYMENTS
The fair value of options and performance rights granted to directors and employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employee becomes
unconditionally entitled to the rights or options, from the grant date. The amount recognised as an expense is
adjusted to reflect the actual number of share options or performance rights that vest, except for those that
fail to vest due to their conditions not being met.
Performance Rights
The following Performance Rights were issued to Directors in the financial year ended 30 June 2020:
Issue date
Expiry date
Exercise
price
Number
Valuation
per right
Value
16 September 2020
10 August 2025
Nil
9,000,000
$0.029
$261,000
Vesting Conditions attaching to Performance Rights:
d.
period of not less than 20 consecutive trading days on which the Shares have actually traded;
The volume weighted average price of the Shares as quoted on ASX exceeds $0.05 each day for a
e.
Gross Proceeds exceed $250,000 in any financial year; or
f.
Gold Project having a contained gold mass of at least 300,000 ounces at a cut-off grade of 2g/t.
The discovery of an “Inferred Mineral resource” (as that term is defined in the Code) at the Blackwood
Pursuant to AASB 2: Share Based Payments, a share based payments expense was required to be recognised
with effect from the date the Board of Directors resolved to issue the performance rights (i.e. 21 May 2020)
over the period to vesting (i.e. until 10 August 2025). Where a holder is no longer eligible due to their no
longer being a Director, as in the case of Jess Oram who resigned on 31 May 2022, AASB 2 requires that the
cost previously recognised be reversed. The effect is to recognise a share based payments expense in the year
ended 30 June 2022 of $46,215 (2021: $87,000).
Management has assessed the likelihood of the vesting conditions being met for the remaining Performance
Rights at 100%.
The share based expenses recognised in accordance with the requirements of AASB 2 are as follows:
Number of
Rights
Total fair
value
Expensed
FY20
Expensed
FY21
Expensed
FY22
To be
expensed
FY23
Total
To be expensed
4,000,000
$116,000
$4,237
$38,666
$38,667
$34,430
$116,000
Simon Youds
Derong Qui
Judy Li
Chengchong Zhou
1,000,000
$29,000
1,000,000
$29,000
1,000,000
$29,000
$1,060
$1,060
$1,059
$9,667
$9,667
$9,667
$9,667
$9,667
$9,667
$8,606
$8,606
$8,607
$29,000
$29,000
$29,000
Sub-Total
7,000,000
$203,000
$7,416
$67,667
$67,668
$60,249
$203,000
Jess Oram
Total
2,000,000
$58,000
$2,118
$19,333 ($21,452)
-
-
9,000,000
$261,000
$9,534
$87,000
$46,215
$60,249
$203,000
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
49
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Options
The fair value of options granted to directors and employees is recognised as a share-based payments expense,
with a corresponding increase in the share based payments reserve, over the period that the employee
becomes unconditionally entitled to the rights or options, from the grant date.
The amount recognised as an expense is adjusted to reflect the actual number of share options that vest,
except for those that fail to vest due to their conditions not being met.
In May 2022, 5,000,000 options were resolved to be issued, subject to shareholder approval, to Director
Ian Mulholland on his appointment as a Director and Chairman. As at 30 June 2022, management have the
assessed the probability of shareholders approving the issue of the options to Ian Mulholland at 100% and
have accordingly commenced recognition of a share based payment expense over the vesting periods from
his appointment. Total expense arising from the options recognised during the year ended 30 June 2022 has
been calculated as $2,500 determined as follows:
Number of
Options
Fair Value
per Option
Total fair
value
Expensed
FY22
To be
expensed
FY23
To be
expensed
FY24
Total
To be
expensed
Ian Mulholland
5,000,000
$0.008
$40,000
$2,500
$28,333
$9,167
$40,000
The fair value of the equity-settled share options issued to Ian Mulholland were estimated as at the date of the
grant using the Black and Scholes valuation method taking into account the terms and conditions upon which
the options were granted, as follows:
Assumption
0.00%
100%
2.97%
3 years
$0.014
$0.020
$0.008
Dividend yield
Expected volatility
Risk-free interest rate
Expected life of options
Share price
Exercise price
Value per Option
24.
COMMITMENTS
Office Rental Commitments
The Company entered into a lease on 9 March 2020 for office premises located at Unit 47, 1008 Wellington
Street, West Perth, for an initial term of 2 years expiring 9 March 2022, and has been continuing on a month
to month basis post the initial expiry date. Subsequent to year end, the lease property has been sold and
Cauldron has until 30 November 2022 to vacate.
Within one year
Between one and five years
Longer than five years
Total commitments
2022
$
12,500
-
-
2021
$
20,795
-
-
12,500
20,795
50
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
Exploration Expenditure Commitments
The minimum exploration expenditure commitments inclusive of rents and rates outstanding at 30 June 2022
in relation to the Company’s licenced tenements were as follows:
Within one year
Between one and five years
Longer than five years
Total commitments
25.
CASH FLOW INFORMATION
(a)
Reconciliation of cash flows from continuing operations with profit/(loss)
from ordinary activities after income tax
(Loss)/profit from continuing operations
Non-cash items:
Depreciation
Share based payments
Net fair value loss/(gain) on financial assets
Fair value loss/(gain) on disposal of shares
Impairment losses
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase in trade and other creditors
Increase/(decrease) in provisions
Net cash flows used in operating activities
(b)
Reconciliation of cash and cash equivalents
497,441
597,204
-
-
-
-
497,441
597,204
2022
$
2021
$
(1,854,948)
(669,504)
2,311
48,715
2,636
87,000
333,263
(1,138,932)
(13,934)
307,108
58,470
404,724
151
(51,389)
160,928
(79,069)
92,327
8,366
(1,095,475)
(1,206,304)
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks
and investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents
at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the
statement of financial position as follows:
Cash at bank and in hand
Cash for reconciliation of cash flow statement
235,738
396,311
235,738
396,311
(c)
Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
·
Options issued to brokers in part payment of placement fees (refer Note 16)
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
51
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26.
FINANCIAL RISK MANAGEMENT
Financial risk management
The Group’s financial instruments consist mainly of deposits with banks, trade and other receivable, loan
receivables, trade and other payables and shares in listed and unlisted companies.
The Group does not speculate in the trading of derivative instruments.
The totals for each category of financial instruments, measured in accordance with AASB 9 are:
2022
2021
$
$
Financial assets
Cash and cash equivalents (note 8)
235,738
375,221
Financial assets at fair value through profit or loss (listed investments) (note 10)
354,300
1,512,527
Financial assets at fair value through profit or loss (unlisted investments) (note 10)
5,260
5,260
Trade and other receivables (note 9)
Total Financial Assets
Financial liabilities
Trade and other payables (note 14)
Total financial liabilities
Financial risk management policies
77,800
77,951
673,098
1,970,959
1,087,482
956,863
1,087,482
956,863
The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk), credit
rate risk and liquidity risk.
The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks
to minimise potential adverse effects on the financial performance of the Group. The Group uses different
methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis
in the case of interest rate, foreign exchange and other price risks and aging analysis for credit risk. Risk
management is carried out by the Board and they provide written principles for overall risk management.
Financial risk exposures and management
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk
consisting of interest rate risk, foreign currency risk and equity price risk.
(a)
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange
rate fluctuations arise. Given the few transactions the Board does not consider there to be a need for policies
to hedge against foreign currency risk. The Group’s has no significant exposure to foreign currency risk as at
the reporting date.
52
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
(b)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the
reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed
rate financial instruments. Cash and cash equivalents on deposit at variable rates expose the Group to cash
flow interest rate risk. The Group is exposed to movements in market interest rates on short term deposits.
The policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between
the liquidity of cash assets and the interest rate return.
The effect on profit/(loss) and equity as a result of changes in the interest rate:
Change in loss:
Increase in interest rate by 200 basis points
Decrease in interest rate by 200 basis points
2022
$
1
(1)
2021
$
7,533
(7,533)
The above interest rate sensitivity analysis has been performed on the assumption that all other variables
remain unchanged.
(c)
Equity Securities Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and
classified on the statement of financial position as current financial assets at fair value through profit or loss.
The Group is not exposed to commodity price risk.
To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio which
is done in accordance with the limits set by the Group. The majority of the Group’s equity investments are
publicly traded on the ASX.
The table below summarises the impact of increases/decreases of the index on the Group’s post tax profit/
(loss) for the year and on equity. The analysis is based on the assumption that the equity indexes had
increased/decreased by 20% (2021 – 20%) with all other variables held constant and all the Group’s equity
instruments moved according to the historical correlation with the index.
Index
ASX listed
Impact on Post-Tax Profit or (Loss)
2022
$
2021
$
71,912
302,505
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
53
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(d)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The Group obtains guarantees where appropriate
to mitigate credit risk.
The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for expected credit loss of those assets, as disclosed in the statement of financial
position and notes to the financial statements. The Group does not hold any collateral.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions
are considered representative across all customers of the Group based on recent sales experience, historical
collection rates and forward-looking information that is available.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to
external credit ratings:
Financial assets
Cash and cash equivalents (note 8)
Trade and other receivables (note 9)
Total Financial Assets
(e)
Liquidity risk
2022
$
235,738
77,800
313,538
2021
$
375,221
77,951
453,172
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities.
Financial instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations of the settlement period for all other financial
instruments.
Maturity analysis
Year ended 30 June 2022
Financial Assets
Cash and cash equivalents (note 8)
Financial assets at fair value through profit
or loss (note 10)
Receivables and loans (note 9 and 11)
Total financial assets
Financial liabilities
Within 1
Year
1 to 5 Years
Over 5
Years
$
$
$
Total
$
235,738
359,560
77,800
673,098
-
-
-
-
-
-
-
-
-
235,738
359,560
77,800
673,098
-
1,087,482
Trade and other payables (note 14)
1,087,482
54
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
Maturity analysis
Within 1
Year
1 to 5 Years
Over 5
Years
$
$
$
Total
$
Total financial liabilities
1,087,482
Net maturity
(414,384)
-
-
-
1,087,482
(414,384)
-
Maturity analysis
Year ended 30 June 2021
Financial Assets
Within 1
Year
1 to 5
Years
Over 5
Years
Total
$
$
$
$
Cash and cash equivalents (note 8)
375,221
Financial assets at fair value through
profit or loss (note 10)
Receivables and loans (note 9 and 11)
Total financial assets
Financial liabilities
Trade and other payables (note 14)
Total financial liabilities
Net maturity
1,517,787
77,951
1,970,959
956,863
956,863
1,014,096
-
-
-
-
-
-
-
-
-
-
-
-
-
-
375,221
1,517,787
77,951
1,970,959
956,863
956,863
1,014,096
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
55
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(f)
Fair value estimation
The fair value of financial assets and liabilities must be estimated for recognition and measurement or for
disclosure purposes. The Directors consider that the carrying amount of financial assets and financial liabilities
recorded in the financial statements approximates their fair values as the carrying value less impairment
provision of trade receivables and payables are assumed to approximate their fair values due to their short-
term nature.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and
classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.
The fair value hierarchy consists of the following levels:
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level
3).
Level 1
Level 2
Level 3
Total
$
$
$
$
Year ended 30 June 2022
Financial Assets:
Financial assets at fair value through profit or loss
(note 10)
359,560
-
-
359,560
Year ended 30 June 2021
Financial Assets:
Financial assets at fair value through profit or loss
(note 10)
1,517,787
-
-
1,517,787
27.
CONTIGENT ASSETS AND LIABILITIES
The Group has no contingent liabilities or assets at 30 June 2022 (30 June 2021: nil), except in relation to the
following legal matters:
Legal Claim – Outstanding Lease Rental Obligations
A Writ of Summons was filed on 28 February 2022 against Cauldron in the District Court of Western Australia by
Cyclone Metals Limited (formerly Cape Lambert Resources Limited) claiming loss and damages of $140,012.41
for unpaid rent.
The claim relates to a tenancy sub-lease agreement in respect of the Company’s former premise at 32 Harrogate
Street, West Leederville, Western Australia, 6007. The Company is defending the action. As at the date of this
report, the matter has yet to be heard.
Sand Mining Licence M08/487
Cauldron is a defendant in matter seeking to prevent the transfer of Sand Mining Licence M08/487 to Cauldron.
The initial judgement was in favour of Cauldron and its co-defendants. The applicant sought leave to appeal
the judgement and that hearing will take place in early October 2022. Whoever is successful will be entitled to
costs. Cauldron has incurred approximately $182,000 on the matter to date and it is expected that if the Court
of Appeal upholds the earlier decision Cauldron will be entitled to recover a substantial portion of its costs.
56
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAULDRON ENERGY LIMITED
28.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial years, except for the following.
Receipt of Loan of $500,000 from Director Qiu Derong
On 16 August 2022, Cauldron received $500,000 from Director Qiu Derong by way of a short term unsecured
converting loan. The key terms of the loan facility are as follows:
Loan Amount:
A$500,000
Interest Rate:
8% per annum
Default Interest Rate: 20% per annum
Term: 6 months
Repayment Terms: Repayable in cash or by the issue of fully paid ordinary shares at a price of 0.7 cents per
share, subject to shareholder approval.
Under the terms of the loan agreement, the Company will convene a general meeting of shareholders at which
shareholders will vote on the conversion of the new loan into shares at the price of 0.7 cents per share.
Resignation of Mr Simon Youds as a Director
On 7 September 2022, Mr Simon Youds resigned as a Director of the Company and as an executive.
Appointment of Mr Michael Fry as a Director
On 7 September 2022, Mr Michael Fry was appointed as a Director of the Company.
29.
PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated loss
Option premium reserve
Total equity
Financial Performance
(Loss)/profit of parent entity
2022
$
2021
$
313,549
380,712
3,194,228
3,022,280
3,507,777
3,402,992
1,055,986
1,055,986
978,118
978,118
2,451,791
2,424,874
60,061,504
58,269,504
(64,471,872)
(62,578,159)
6,862,159
6,734,159
2,451,791
2,424,874
(1,900,668)
(622,417)
Total comprehensive (loss)/profit of the parent entity
(1,900,668)
(622,417)
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
57
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Loans to Controlled Entities
Loans are provided by the Parent Entity to its controlled entities for their respective operating activities.
Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment. The
eventual recovery of the loan will be dependent upon the successful commercial application of these projects
or the sale to third parties. Details of loans provided are listed below:
Subsidiaries
Ronin Energy Ltd
Cauldron Minerals Ltd
Jakaranda Minerals Ltd
Raven Minerals Ltd
Anthill Concrete Ltd
Total value of loans provided to subsidiaries
Commitments
2022
$
-
-
-
-
80,728
80,728
2021
$
23,329
8,900,347
1,411,055
25,775
7,585
10,368,091
The commitments of the Parent Entity are consistent with the Group (refer to note 24).
Contingent Liabilities and Assets
The contingent liabilities and assets of the Parent Entity are consistent with those of the Group, refer Note
27.
58
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
DIRECTORS’ DECLARATION
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Cauldron Energy Limited, I state that:
1.
In the opinion of the directors:
(a)
with the Corporations Act 2001, including:
the financial statements and notes set out on pages 17 to 48 and the Directors’ Report are in accordance
(i)
for the year ended on that date; and
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
become due and payable.
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
2.
compliance with International Financial Reporting Standards.
The Directors draw attention to Note 1 to the financial statements, which includes a statement of
3.
officer for the year ended 30 June 2022 required by section 295A of the Corporations Act 2001.
The Directors have been given the declarations by the chief executive officer and chief financial
This declaration is made in accordance with a resolution of the Board of Directors.
Mr Ian Mulholland
Chairman
30 September 2022
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
59
CAULDRON ENERGY LIMITED
INDEPENDENT AUDITOR’S REPORT
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
INDEPENDENT AUDITOR'S REPORT
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
To the members of Cauldron Energy Limited
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Report
To the members of Cauldron Energy Limited
Opinion
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
We have audited the financial report of Cauldron Energy Limited (the Company) and its subsidiaries
Report on the Audit of the Financial Report
(the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Opinion
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
We have audited the financial report of Cauldron Energy Limited (the Company) and its subsidiaries
to the financial report, including a summary of significant accounting policies and the directors’
(the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
declaration.
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
Act 2001, including:
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(i)
Basis for opinion
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Basis for opinion
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Report section of our report. We are independent of the Group in accordance with the Corporations
ethical responsibilities in accordance with the Code.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We confirm that the independence declaration required by the Corporations Act 2001, which has been
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
given to the directors of the Company, would be in the same terms if given to the directors as at the
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
time of this auditor’s report.
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
We confirm that the independence declaration required by the Corporations Act 2001, which has been
for our opinion.
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
Material uncertainty related to going concern
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
for our opinion.
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
Material uncertainty related to going concern
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
matter.
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
60
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
INDEPENDENT AUDITOR’S REPORT
CAULDRON ENERGY LIMITED
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying value of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 12 to the financial report, the
carrying value of capitalised exploration and
evaluation expenditure represents a significant
asset of the Group.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (AASB 6), the
recoverability of exploration and evaluation
expenditure requires significant judgment by
management in determining whether there are any
facts or circumstances that exist to suggest that
the carrying amount of this asset may exceed its
recoverable amount. As a result, this is considered
a key audit matter.
Our procedures included, but were not limited
to:
•
•
•
•
•
Obtaining a schedule of the areas of
interest held by the Company and
assessing whether the rights to tenure of
those areas of interest remained current
at balance date;
Considering the status of the ongoing
exploration programmes in the
respective areas of interest by holding
discussions with management, and
reviewing the Company’s exploration
budgets, ASX announcements and
directors’ minutes;
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
Considering whether any facts or
circumstances existed to suggest
impairment testing was required; and
Assessing the adequacy of the related
disclosures in Note 12 to the Financial
Report.
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
61
2
CAULDRON ENERGY LIMITED
INDEPENDENT AUDITOR’S REPORT
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
62
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
3
INDEPENDENT AUDITOR’S REPORT
CAULDRON ENERGY LIMITED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 5 to 7 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Cauldron Energy Limited, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth
30 September 2022
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
63
4
CAULDRON ENERGY LIMITED
ADDITIONAL INFORMATION
Additional information required by ASX Listing Rules and not shown elsewhere in the report is set out below.
The information is current as of 19 October 2022.
1. CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is available on the corporate governance page on the Com-
pany’s website at http://cauldronenergy.com.au/our-company/corporate-governance/.
2. SHAREHOLDING AS AT 19 OCTOBER 2022
Cumulative number of fully paid ordinary shares on issue 535,411,277
3. SUBSTANTIAL HOLDERS AS AT 19 OCTOBER 2022
The names of the substantial shareholders listed in the Company’s register as at 19 October 2022 were:
Shareholder
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Dekang Qiu
Number of shares held
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
30,000,000
4. DISTRIBUTION OF EQUITY SECURITIES AS AT 19 OCTOBER 2022
The distribution of members and their holdings of securities in the Company as at 19 October 2022 were as
follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
Number of
shareholders
Fully Paid Ordinary
Shares
189
385
226
632
354
1,786
80,940
1,002,495
1,816,257
26,017,953
506,493,632
535,411,277
5. UN-MARKETABLE PARCELS AS AT 19 OCTOBER 2022
As at 19 October 2022, there were 1,197 holders (each holding 45,545 or less fully paid ordinary shares) or
less than a marketable parcel of ordinary shares, based upon the closing share price on 19 October 2022 of
$0.011. In cumulative, the number of shares held by holders of unmarketable parcels totalled 12,092,653.
64
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
CAULDRON ENERGY LIMITED
ADDITIONAL INFORMATION
6. UN-QUOTED SECURITIES AS AT 19 OCTOBER 2022
Class
Exercise
Price
Options
$0.05
Issue
Date
16-Sep-
20
Expiry
Date
No. of
Securities
No. of
Holders
Name (where holder
>20%)
Number held
(%)
16-Sep-
23
6,000,000
10
Stuart McDougall
1,205,136
(20%)
Options
$0.05
6-Nov-20,
8-Sep-21
30-Nov-
23
61,001,898
121
Options
$0.034
18-Mar-
22
15-Mar-
24
24,705,882
32
Atlantic Capital Holdings
Pty Ltd
10,000,000
(40%)
Rights
$0.00
16-Sep-
20
16-Sep-
23
9,000,000
6
Simon Youds
Jess Oram
4,000,000
(44%)
2,000,000
(22%)
7. TWENTY LARGEST SHAREHOLDERS AS AT 19 OCTOBER 2022
The names of the twenty largest holders of ordinary fully paid shares at 19 October 2022 are:
Name
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Dekang Qiu
Dempsey Resources Pty Ltd
BNP Paribas Nominees Pty Ltd
Citicorp Nominees Pty Ltd
Regent Point Pty Ltd
Anthony Keith Avotins
Granborough Pty Ltd
Doone Lee McDougall
BNP Paribas Nominees Pty Ltd ACF Clearstream
CALM Holdings Pty Ltd
Dugal McDougall
HSBC Custody Nominees
M & K Korkidas Pty Ltd
Capeline Nominees Pty Ltd
Syed Mushleh Uddin
Number of
ordinary
shares held
% of issued
shares
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
30,000,000
25,186,036
18,963,959
17,414,277
8,000,000
6,959,811
6,000,000
5,367,271
5,124,159
5,000,000
4,323,387
4,297,206
4,270,000
4,172,864
3,893,986
8.88%
7.70%
6.33%
5.86%
5.84%
5.60%
4.70%
3.54%
3.25%
1.49%
1.30%
1.12%
1.00%
0.96%
0.93%
0.81%
0.80%
0.80%
0.78%
0.73%
334,271,484
62.42%
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
65
CAULDRON ENERGY LIMITED
ADDITIONAL INFORMATION
8. VOTING RIGHTS
Ordinary Shares:
In accordance with the Company’s Constitution, on a show of hands every member present in person or by
proxy or attorney or duly authorised representative has one vote. On a poll every member present in person
or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held.
Options:
Holders of options do not have a right to vote.
9. RESTRICTED SECURITIES
The Company has no restricted securities on issue.
10. INTERESTS IN TENEMENTS
TENEMENT REFERENCe
Project & Location
Interest
E08/1489
E08/1490
E08/1493
E08/1501
E08/2017
E08/2081
E08/2205
E08/2385
E08/2386
E08/2387
E08/2774
E08/3088
EL5479
E08/2328
E08/2329
E08/2462
L08/71
M09/96
M08/487
E09/2715
M09/180
E04/2548
P08/798
P08/800
E08/3520
E08/3521
* beneficial interest
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
BLACKWOOD – VICTORIA
ONSLOW – WESTERN AUSTRALIA
ONSLOW – WESTERN AUSTRALIA
ONSLOW – WESTERN AUSTRALIA
ONSLOW – WESTERN AUSTRALIA
ONSLOW – WESTERN AUSTRALIA
ONSLOW – WESTERN AUSTRALIA
Carnarvon – Western Australia
Carnarvon – Western Australia
Derby – Western Australia
Onslow – Western Australia
Onslow – Western Australia
Yanrey – Western Australia
Yanrey – Western Australia
66
Cauldron Energy Limited Annual Report for the year ended June 30, 2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
51%
100%
100%
100%
100%
100%
100%*
100%
100%*
100%*
100%
100%
100%
100%
CAULDRON ENERGY LIMITED
River Sands Projects | Gascoyne River, Ashburton River and Fitzroy River
CAULDRON ENERGY LIMITED
Cauldron Energy Ltd. (ASX Code: CXU)
Unit 47, Level 1, 1008 Wellington Street
West Perth, Western Australia, 6005
Phone: 08 6270 4693 Fax: 08 6323 3347
email: IR@cauldronenergy.com.au
www.cauldronenergy.com.au
68
Cauldron Energy Limited Annual Report for the year ended June 30, 2022