`
ABN 23 101 049 334
And Controlled Entities
Annual Report
For the Year Ended
30 June 2023
CONTENTS
Cazaly Resources Limited Annual Report 2023
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
1
2
26
27
28
29
30
31
55
56
61
CORPORATE DIRECTORY
Cazaly Resources Limited Annual Report 2023
CHAIRMAN
Clive Jones
MANAGING DIRECTOR
Tara French
NON-EXECUTIVE DIRECTORS
Terry Gardiner
Jonathan Downes
COMPANY SECRETARY
Mike Robbins
PRINCIPAL & REGISTERED OFFICE
Level 3, 30 Richardson Street
WEST PERTH WA 6005
AUDITORS
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco WA 6008
SHARE REGISTRAR
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: CAZ
BANKERS
National Australia Bank
100 St Georges Terrace
PERTH WA 6000
1
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Your directors present their report, together with the financial statements of Cazaly Resources Limited (the
Company or Cazaly) and its controlled entities (the Group) for the financial year ended 30 June 2023.
1.
DIRECTORS AND COMPANY SECRETARY
Directors
The following directors have been in office since the start of the financial year to the date of this report unless
otherwise stated:
Tara French – Managing Director
Clive Jones - Chairman
Terry Gardiner – Independent Non-Executive Director
Jonathan Downes – Independent Non-Executive Director
Company Secretary
Mike Robbins
Directors’ Meetings
The number of Directors’ meetings held and conducted during the financial year and the number of meetings
attended by each Director are:
Mr Jones
Ms French
Mr Gardiner
Mr Downes
Meetings
No.
Eligible
No.
Attended
7
7
7
7
7
7
7
7
The Company does not have a formally constituted audit and risk committee or remuneration and nomination
committee as the Board considers that the Company’s size and type of operation do not warrant the formation of
such committees. The Board performs the role of these committees and items that are usually required to be
discussed by these committees are marked as separate Board meeting agenda items, as and when required.
2.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was mineral exploration and evaluation activities as
well as seeking out further exploration, acquisition and joint venture opportunities. There were no significant
changes in the nature of the Group’s principal activities during the financial period.
3.
OPERATING RESULTS & FINANCIAL POSITION
The Group’s loss after tax for the year was $2,124,956 (2022: $1,740,579). The Group’s net assets at the end of the
year are $14,033,504 (2022: $15,931,190).
Cash and cash equivalents as at year end were $3,818,431 (2022: $6,901,309).
Exploration expenditure, including tenement acquisitions, totalled $2,839,082 for the year (2022: $1,755,001). The
main expenditure was on its new Canadian projects, Ashburton, Halls Creek and new project generation.
Exploration expenditure written off for the year was $636,964 (2022: $186,809) and related to new project generation
costs and expenditures associated with various projects, tenements and applications that were relinquished or
written off during the financial year.
Net administration expenses and employee benefits for the year totalled $979,688 (2022: $827,045).
2
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
During this next financial year the Group intends to continue to further develop its current core projects whilst also
exploring new key commodity opportunities both in Australia and overseas.
4.
RISKS
There are risks that specifically relate to the Company’s current mode of Operations. The following is not intended
to be an exhaustive list of risk factors to which the Company may be exposed.
(a) Tenure, access and grant of applications
Mining and exploration tenements are subject to periodic renewal. There is no guarantee that the Company's
tenements will be renewed (nor that any future tenement applications will be granted).
The Company's projects are subject to relevant mining legislation. The renewal of the term of a granted tenement
is also subject to government discretion and the Company’s ability to meet the conditions imposed by relevant
authorities, including compliance with the Company’s work program requirements, is not certain. Renewal
conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of
the tenements comprising the Company's projects. The imposition of new conditions or the inability to meet those
conditions may adversely affect the operations, financial position and/or performance of the Company.
There is no assurance that such renewals will be given as a matter of course and there is no assurance that new
conditions will not be imposed by the relevant granting authority. The consequence of forfeiture or involuntary
surrender of a granted tenement for reasons beyond the control of the Company could be significant. In addition,
the Company is subject to payment and other obligations. In particular, tenement holders are required to expend
the funds necessary to meet the minimum work commitments attaching to the tenements. Failure to meet these
work commitments may render the tenement liable to be cancelled or its size reduced.
There is also a risk of inability to access the land required for operations on tenements. This may, for example, be
as a result of weather, environmental restraints, native title, landholder’s activities, regulatory or third-party
objections or other factors. Such difficulties may cause delays and cost overruns and may prevent the carrying out
of activities on tenements.
Interests in tenure may also be compromised or lost due to third party interests or claims.
(b) Future capital requirements
The Company’s capital requirements depend on numerous factors. Additional funding may be required and may
be raised by the Company via the issues of equity, debt or a combination of debt and equity or asset sales. Any
additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on
financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be
required to reduce the scope of its proposed operations and scale back its exploration, studies and development
programmes as the case may be. There is no guarantee that the Company will be able to secure any additional
funding or be able to secure funding on terms favourable to the Company.
If the Company is unable to obtain additional financing as needed, it may be required to reduce, delay or suspend
its operations and this could have a material adverse effect on the Company's activities and could affect the
Company's ability to continue as a going concern or remain solvent.
(c) Reliance on key personnel
The Company is reliant on a number of key personnel and consultants. The loss of one or more of these key
contributors could have an adverse impact on the business of the Company. It may be difficult for the Company
to continue to attract and retain suitable qualified and experienced people.
(d) New projects and acquisitions
The Company may make acquisitions in the future as part of future growth plans. In this regard, the Directors will
use their expertise and experience in the resources sector to assess the value of potential projects that have
characteristics that the Directors consider are likely to provide returns to Shareholders.
3
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
There can be no guarantee that any new project acquisition or investment will eventuate from these pursuits, or
that any acquisitions will result in a return for Shareholders. Such acquisitions may result in use of the Company’s
cash resources and/or the issuance of equity securities, which will dilute shareholdings.
(e) Native title, cultural heritage and sacred sites
Mining tenements in Australia are subject to native title laws and may be subject to future native title applications.
Native title may preclude or delay granting of exploration and mining tenements or the ability of the Company to
explore, develop and/or commercialise the mining tenements. Considerable expenses may be incurred
negotiating and resolving issues, including any compensation agreements reached in settling native title claims
lodged over any of the mining tenements held or acquired by the Company.
The presence of Aboriginal sacred sites and cultural heritage artefacts on mining tenements is protected by
Western Australian and Commonwealth laws. Any destruction or harming of such sites and artefacts may result in
the Company incurring significant fines and court injunctions. The existence of such sites may limit or preclude
exploration or mining activities on those sites, which may cause delays and additional expenses for the Company
in obtaining clearances.
(f) Political Risk
The Company has interests in exploration licences in Namibia and Canada. Mineral exploration tenure in both
countries is governed by their own legislation.
Its interests in Namibia and Canada will be subject to the risks associated with operating in a foreign country. These
risks may include economic, social or political instability or change, hyperinflation, currency non-convertibility or
instability and changes of law affecting foreign ownership, heritage and native title laws, exchange control,
exploration licensing, export duties, investment into a foreign country and repatriation of income or return of
capital, environmental protection, land access and environmental regulation, mine safety, labour relations as well
as government control over petroleum properties or government regulations that require the employment of local
staff or contractors or require other benefits be provided to local residents.
Any future material adverse changes in government policies or legislation in Namibia or Canada that affect
ownership, mineral exploration, development or mining activities, may affect the viability and profitability of the
Company.
(g) Results of Studies
Subject to the results of any future exploration and testing programs, the Company may progressively undertake
a number of studies in respect to the Company’s current projects or any new projects. These studies may include
scoping studies, pre-feasibility studies and bankable feasibility studies.
These studies may not occur, but if they are completed, they would be prepared within certain parameters
designed to determine the economic feasibility of the relevant project within certain limits. There can be no
guarantee that any of the studies will confirm the economic viability of the Company’s projects or the results of
other studies undertaken by the Company (e.g. the results of a feasibility study may materially differ to the results
of a scoping study).
Further, even if a study determines the economics of the Company’s projects, there can be no guarantee that the
projects will be successfully brought into production as assumed or within the estimated parameters in the
feasibility study, once production commences including but not limited to operating costs, mineral recoveries and
commodity prices.
In addition, the ability of the Company to complete a study would be dependent on the Company’s ability to raise
further funds to complete the study as required.
4
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
(h) Resource and Reserve estimates
Ore reserve and mineral resource estimates are expressions of judgment based on drilling results, past experience
with mining properties, knowledge, experience, industry practice and many other factors. Estimates which are valid
when made may change substantially when new information becomes available. Mineral resource and ore reserve
estimation is an interpretive process based on available data and interpretations and thus estimations may prove
to be inaccurate. There is no guarantee that any of the Company's projects will become feasible and consequently
no forecast is made of whether or not any ore reserve will be defined in future.
The actual quality and characteristics of mineral deposits cannot be known until mining takes place and will almost
always differ from the assumptions used to develop resources. Further, ore reserves are valued based on future
costs and future prices and, consequently, the actual ore reserves and mineral resources may differ from those
estimated, which may result in either a positive or negative effect on operations.
Should the Company encounter mineralisation or formations different from those predicted by past drilling,
sampling and similar examinations, resource estimates may have to be adjusted and mining plans may have to
be altered in a way which could adversely affect the Company’s operations.
(i) Exploration Risks
Mineral exploration and development are high risk undertakings due to the various levels of inherent uncertainty.
There can be no assurance that exploration of the Group’s tenements, or of any other tenements that may be
acquired by the Group in the future, will result in the discovery of economic mineralisation. Even if economic
mineralisation is discovered there is no guarantee that it can be commercially exploited.
(j) Environmental liabilities risk
The Company’s activities are subject to potential risks and liabilities associated with (without limitation) the
potential pollution of the environment and the necessary disposal of waste products resulting from mineral
exploration and development. Insurance against environmental risk (including potential liability for pollution or
other hazards as a result of the disposal of waste products occurring from exploration is not generally available to
the Company (or to other companies in the minerals industry) at a reasonable price. To the extent that the
Company becomes subject to environmental liabilities, the satisfaction of any such liabilities would reduce funds
otherwise available to the Company and could have a material adverse effect on the Company. Laws and
regulations intended to ensure the protection of the environment are constantly changing and are generally
becoming more restrictive.
(k) Climate change risk
There are a number of climate-related factors that may affect the operations and financial position of the
Company. Climate change or prolonged periods of adverse weather and climatic conditions (including rising sea
levels, floods, hail, drought, water, scarcity, temperature extremes and earthquakes) may have an adverse effect
of the Company's activities and/or the Company's future financial performance.
Changes in policy, technological innovation and/or consumer/investor preferences may also adversely impact
the operations and financial position of the Company or may result in less favourable pricing for its product,
particular in the event of a transition to a lower carbon economy.
(l) Commodity price volatility and exchange rate risks
The Company is exposed to the risks of commodity price volatility and exchange rate fluctuations affecting the
Company's costs.
Also, if the Company achieves success leading to mineral production (which may never occur), the revenue it will
derive through the sale of product will expose the potential income of the Company to commodity price and
exchange rate risks.
5
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
5.
REVIEW OF OPERATIONS
PROJECTS
SAFETY
The Company has safe work management systems in place and continues to follow safe work practices. No lost
time injuries (LTI’s) or incidents occurred since the lodgement of the 2022 annual report.
CANADA
Sundown Lithium Project (CAZ 25%, earning up to 100%)
On 31 May and 1 June 2023, the Company announced it had entered into a binding agreement to acquire the
Sundown Lithium Project, located in the world-class James Bay lithium province (Figure 1). The region is an
emerging world class lithium district, host
to several advanced lithium projects and
new lithium discoveries.
The Sundown project
represents a
significant acquisition for the Company,
comprising 510 mining claims covering an
area approximately 260km2 with over 200
documented outcropping pegmatites
(refer CAZ announcements dated 31 May
2023 and 1 June 2023). The pegmatites
have never been sampled for lithium.
The Sundown project (Figure 2) is located
between Allkem Limited’s (ASX:AKE) James
Bay deposit with a lithium resource of
110.2Mt at 1.3% Li2O (AKE announcement
dated 11 August 2023) and Patriot Battery
Metals Inc’s (ASX:PMT) Corvette lithium
discovery with a lithium resource of 109.2Mt
at 1.42% Li2O within a 214km2 land package
(PMT announcement dated 30 July 2023).
Figure 1. The Sundown Lithium Project, James Bay District
Further recent successes in the region include Critical Elements Lithium Corporation’s Rose deposit (33Mt @ 0.92%
Li2O) (announcement dated 29 August 2023 stating a NI 43-101 compliant resource dated 1 August 2023), Nemaska
Lithium Inc’s Whabouchi deposit (53.7Mt @ 1.45% Li2O) (NI 43-101 Technical Report dated 21 February 2018) and
Winsome Resources Limited’s (ASX:WR1) Cancet and Adina lithium discoveries.
The Sundown claims have received little modern exploration activity and the significant number of reported
pegmatites is the result of exploration conducted by the Québec Ministry of Natural Resources and Forestry (MERN),
which included rock chip sampling and lake bottom sediment sampling with a focus on gold.
6
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Figure 2. Cazaly’s Sundown Lithium project location relative to infrastructure
and other significant lithium projects.
Subject
to satisfactory due
On 8 August 2023,
the Company
announced that it completed its due
diligence and would complete the
acquisition of the Sundown
lithium
project. The material terms of the
property option agreement between
Cazaly and
1Minerals Corp are as
follows:
1.
Payment of a non-refundable
C$50,000 Option Fee for a 2-month
exclusive due diligence period (paid)
2.
diligence:
a)
Pay C$350k cash (paid) and
C$600k in stock or cash; CAZ receives a
25% equity (*).
b)
End Year 1: Pay C$250k cash and
C$750k in stock or cash; CAZ to receive
a 50% equity.
c)
End Year 2: Pay C$250k cash and
C$750k in stock or cash; CAZ to receive
a 75% equity.
d)
End Year 3: Pay C$250k cash and
C$750k in stock or cash, CAZ to receive
100% equity.
e)
receives a 2% net
smelter royalty with Cazaly to retain an
option to buy back 1% for C$1m.
Vendor
(*) As announced on 7 August 2023, after the completion of due diligence, the Company moved to a 25% holding
in the Sundown Lithium Project after paying C$350,000 and issuing 19,065,535 CAZ shares (issued on 11 August
2023). The share issue was based on the CAZ VWAP for the period of 5 consecutive trading days on which shares
are traded up to and including the trading day prior to the relevant issue date, at the then prevailing C$/A$
exchange rate as published on the website of the Reserve Bank of Australia.
Cazaly has completed target ranking of potential pegmatites based on satellite imagery, geological observations
of pegmatite occurrences made by Québec’s MERN geologists, elevated levels of lithium in lake bottom sediment
samples, and proximity to the Gladman Suite, a new lithium prospective zone identified by MERN geologists in
2022. The Gladman Suite is characterised by the presence of numerous E-W trending pegmatitic granite dykes and
the presence of tourmaline, garnet and muscovite in these rocks indicates a hyperaluminous composition suitable
for the development of lithium mineralisation. For a comprehensive list of all outcropping pegmatite locations for
the Sundown lithium project please refer to Cazaly’s ASX announcement dated 31 May 2023.
The western half of the property has significant exposure of outcrop and as such targeting in this area has identified
two large priority areas to initially test for lithium bearing pegmatites. Two priority target areas were also identified
on the eastern side of the property (Figure 3).
Cazaly’s in-country team will conduct the first phase of exploration, that will consist of a reconnaissance field work
program and rock chip sampling, in order to conduct on-ground assessments at key targets and compare
observations with historically documented reports. This will be the first lithium exploration on the project and all
rock chip samples will be analysed for lithium and multi-element litho-chemical suite.
7
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
3
4
2
1
Figure 3. Sundown priority target areas
Cazaly remains excited about the potential of the Sundown project however access was severely affected due to
forest fires in the region. Access restrictions were eased in the last week of August 2023 as the fires abated and
areas become safe to explore. A start to the initial field program is imminent.
Cautionary Statement
Reported outcropping pegmatite occurrences does not equate to lithium mineralisation. The Company is
encouraged by the geology identified, however no quantitative or qualitative work has been completed by the
company to assess the mineralisation potential at this stage. The initial fieldwork proposed by the Company will
include rock chip sampling and assaying of outcrops identified as pegmatites to determine their mineralisation
potential to report results under JORC code 2012.
For further technical disclosures and references please refer to Cazaly announcements dated 31 May 2023, 1 June
2023, 7 August 2023, 15 August 2023 and 4 September 2023.
Carb Lake Rare Earth Elements Project (CAZ 100%)
On 27 April and 3 May 2023, Cazaly announced it had secured an option agreement to acquire the Carb Lake rare
earth elements project and following extensive due diligence, completed this 100% acquisition of the project in June
2023 (CAZ announcement dated 14 June 2023). The Project is located in the Red Lake district in Ontario, Canada
(Figure 4) and comprises 93 mineral claims covering a very large carbonatite prospective for rare earth elements
(REE). The terms of the purchase agreement were:
Payment of a non-refundable Option Fee of C$15,000 (paid) for a 2-month exclusive due diligence period
Subject to satisfactory due diligence, payment of another C$85,000 (paid) for 100% ownership
1.
2.
3. Vendors receive a 2% net smelter royalty
8
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Figure 4. Location of the Carb Lake REE Project, Red Lake District NW Ontario.
The Project area is in north-western Ontario and hosts a very large mid-Proterozoic aged carbonatite positioned
between two major tectonic terrane boundaries along the North Kenyon Fault (NKF). The NKF is a significant crustal
scale fault providing an ideal environment for the emplacement of carbonatite intrusions. The carbonatite is not
exposed at surface with shallow cover estimated to be from 7 to 12m.
The Carb Lake Carbonatite Complex has had very limited modern exploration. Following the recognition of a large
circular aeromagnetic anomaly in 1967, four diamond holes were completed by Big Nama Creek Mines Ltd for
564m, the only drilling ever completed on the Project (Figure 5).
DD003
DD004
DD002
DD001
Figure 5. Horizontal gradient aeromagnetic image of +3km diameter Carb
Lake carbonatite complex within the total claim area.
is
The major lithology described from drill
sövite, a coarse grained
core
carbonatite rock, alternating with layers of
silico-carbonatite.
Further work was conducted in the late
1960s and again in the 1970s by the Ontario
Department of Mines, Geological Survey.
Geochemical analysis of sövite
from
diamond holes DD003 and DD004 returned
up to 8% P2O5 probably associated with
apatite and enriched in Nb and light REEs.
The best results reported were from DD004,
drilled into the centre of the carbonatite
complex
in an area of low magnetic
intensity (Figure 5), with two samples
reporting >5% Ce and >1% La. One sample
reported a value of 7.1% Nb.
9
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
An airborne magnetic/radiometric survey completed in 2011 by South American Rare Earth Corporation (SAREC)
displays partial ring structures around the centre of the carbonatite complex (Figure 5) shown as green magnetic
lows possibly representing multiple intrusive phases.
Comments Regarding the Reporting of Other Entities Historical Exploration Results
The exploration results reported herein have been sourced from public reports as listed in the References.
•
• Only selected drill core samples were reported in historical reports.
•
The information in this announcement is an accurate representation of the available data for project
that has been sourced to date.
The historical exploration results were not reported in accordance with the JORC 2012 Code.
•
Hole ID
UTM_EAST
UTM_NORTH
DIP
AZIMUTH
DD001
563139
6069169
DD002
563518
6068857
DD003
563579
6069139
DD004
563496
6069429
-50
-50
-50
-50
10
10
10
10
EOH DEPTH
(m)
Cover (m)
125
150.91
138.41
6.7
12.2
9.15
149.39
11.89
Table 1 Big Nama Creek Mines Drillhole data. NAD83 / UTM zone 15N.
As announced on 31 July 2023, Cazaly’s in-country team completed a portable XRF (pXRF) program on available
diamond core. Preliminary pXRF readings conducted on historical core samples have confirmed anomalous levels
of Lanthanum (La), Cerium (Ce), Neodymium (Nd), Praseodymium (Pr), and Niobium. These results validate the
project's potential for economic REE and Nb mineralisation and reinforce the Company’s confidence in the future
prospects of the Carb Lake REE project.
As mentioned, four diamond holes were drilled at Carb Lake in 1967 for a total of 564m with limited drill core
remaining intact and available for non-invasive work. The remaining drill core was re-logged and tested using a
pXRF, a portable gammaray spectrometer and a magnetic susceptibility metre.
The best pXRF results include Nb 0.6%; La 3.36%; Ce 4.34%; Pr 0.42%; Nd 1.49%.
As part of the Company’s initial studies, the 2011 aeromagnetic digital survey data was sourced and purchased.
The aeromagnetics enables the Company to expand its understanding of the subsurface geology and aid in
identifying potential target areas for future exploration.
The Company also acquired detailed high resolution satellite imagery to 17cm, with >97% clarity (<3% cloud cover).
This dataset will be extremely useful during the initial exploration planning stages.
An initial field reconnaissance trip was planned to include geological field mapping to determine any areas of float,
or outcrop, and prospecting to collect any rock chip samples where float and outcrop is observed. As announced
on 22 August 2023, Cazaly’s in-country team mobilised a 4-man crew and established a field camp to facilitate
the field program.
Cautionary Statement
The pXRF exploration results reported herein have been collected on historical core samples and are not
equivalent to analytical laboratory results. The use of spot pXRF readings only provides an indication of the
potential order of magnitude of analytical laboratory assay results. The downhole location of pXRF results
collected cannot be relied upon for actual location due to the incomplete nature of the remaining historical drill
core.
For further technical disclosures and references please refer to CAZ announcements dated 27 April 2023, 3 May
2023, 14 June 2023, 31 July 2023 and 22 August 2023.
10
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
AUSTRALIA
Halls Creek Copper, Zinc and Silver Project (CAZ 100%)
The project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly
prospective for a range of commodities including copper, gold and nickel (Figure 6). The project includes the Mount
Angelo North volcanogenic massive sulphide (VMS) copper-zinc-silver deposit and the Bommie porphyry copper
deposit.
Figure 6. Location of Cazaly's Mount Angelo North and Bommie Resources relative to AuKing's Koongie Park Deposits.
Outstanding results from Cazaly drilling at Mount Angelo North included 64m @ 2.7% Cu (1.1% Zn), 62m @ 2.4% Cu
(2.8% Zn), 37m @ 2.6% Cu (6.1% Zn), 16m @ 5.9% Cu, 18m @ 2.5% Cu. Significant copper drill intercepts at the
Bommie deposit included 170m @ 0.4% Cu, 178m @ 0.3% Cu and 136m @ 0.3% Cu. Higher-grade intercepts include
23m @ 1.0% Cu and 7m @ 1.3% Cu.
Mineral Resource Estimates for these deposits are reported in accordance with the JORC Code 2012 as per the
tables below by resource classification and weathering state.
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Table 2. Mount Angelo North Cu-Zn-Ag Deposit, Mineral Resource Estimate (0.4% Cu cut-off), January 2022
Indicated
Inferred
Total
Type
Oxide
TONNES
Metric
149,000
Transitional
158,000
699,000
Fresh
Total
Cu
%
1.4
1.7
1.7
Ag
ppm
21
16
13
15
Zn
%
0.9
1.5
1.8
TONNES
Metric
Cu
%
Ag
ppm
67,500
0.9
157,000
487,000
1.2
1.0
Zn
%
0.9
0.6
TONNES
Metric
216,000
316,000
1.4
1,187,000
Cu
%
1.2
1.4
1.4
1.2
1,719,000
1.4
Ag
ppm
17
12
12
12
Zn
%
0.9
1.1
1.6
1.4
9
7
10
9
1,007,000
1.6
1.6
712,000
1.0
For further technical information please refer to the Cazaly ASX Quarterly Activities Report for December 2021 (dated
31 January 2022).
Table 3. Bommie Porphyry Copper Deposit, Maiden Mineral Resource Estimate (0.2% Cu cut-off), November 2022
Indicated
Inferred
Total
Type
TONNES
Metric
Cu
%
Cu metal
Tonnes
TONNES
Metric
Cu
%
Cu metal
Tonnes
TONNES
Metric
Cu
%
Cu
metal
Tonnes
Oxide
212,000
0.29
1,000
1,108,000 0.27
3,000
1,320,000 0.27
4,000
Transitional
2,799,000
0.30
8,000
6,978,000 0.28
19,000
9,777,000 0.27
28,000
Fresh
Total
3,091,000
0.30
39,000
71,380,000 0.27
190,000
84,471,000 0.27
230,000
16,102,000
0.30
48,000
79,466,000 0.27
212,000
95,568,000 0.27
262,000
Refer to the ASX announcement dated 24 November 2022 for details of drilling, results and the resource estimation
parameters.
In late 2022, Cazaly formalised a Memorandum of Understanding (MoU) with AuKing Mining Ltd (ASX:AKN) to include
Cazaly’s Halls Creek mineral resources into their scoping study for a mining operation. Cazaly and AuKing both
recognised the significant benefits in combining their resources in the scoping study and potential future
development of a central mining hub at Sandiego with multiple feed options from the surrounding deposits
(ASX:AKN Announcement dated 20 December 2022).
The Sandiego deposit is part of AuKing’s Koongie Park project at Halls Creek where they have acquired a 100%
interest through a joint venture with Astral Resources NL (ASX:AAR), subject to a 1& new smelter royalty for AAR (AKN
announcement dated 7 July 2023).
In June 2023, Cazaly received positive results from AuKing Mining Limited’s Koongie Park copper-zinc scoping study,
which included the Company’s 100%-owned mineral resources at Halls Creek (Figure 6).
The AuKing scoping study confirms the potential for a financially robust, globally competitive operation with life-
of-mine of 11 years with an estimated total production of 110kt Cu, 38kt Zn and 355koz Ag.
The strong project economics and financial returns produced a pre-tax NPV8% of approximately A$176.9M and a
39.7% IRR. The estimated payback period is 2.45 years after incurring pre-production Capex of A$134M.
For full scoping study results and details please refer to CAZ announcement dated 1 June 2023.
Ashburton Basin Rare Earth Elements, Gold and Base Metals Project (CAZ 100%)
Cazaly’s Ashburton project spans 2,450km2 in the Ashburton Basin, in the Pilbara region of Western Australia (Figure
7). The Ashburton Basin forms the northern part of the Capricorn Orogen, a ~1,000km long, 500km wide region of
variably deformed metamorphosed igneous and sedimentary rocks located between the Yilgarn and Pilbara
cratons.
12
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
The Ashburton project covers major regional structures considered to be highly prospective for gold, base metals
and REE mineralisation. The project area presents an excellent opportunity for discovery of large mineralised
systems along the major regional scale structures, which to date have seen very little modern exploration.
Figure 7. Location of the Ashburton Project relative to +1Moz gold deposits and regional scale mineralised trends.
In early August 2022 an Airborne Electromagnetic (AEM) Survey was completed across three blocks (Figure 9) for
a total of 305 line kilometres at 400m or 200m line spacing. Survey Block 1 tested an area along the Nanjilgardy
Fault with anomalous historical surface geochemistry. The Nanjilgardy fault is a major regional scale structure
marking the boundary between the Capricorn Orogen and the Pilbara Craton. The structure is associated with
significant deposits including Black Cat’s (ASX: BC8) Paulsens gold mine and Kalamazoo’s (ASX: KZR) Mount
Olympus gold mine (Figure 7). Survey Blocks 2 and 3 were designed to refine broad TEMPEST AEM anomalies
identified in publicly available government survey data. Block 2 is also coincident with anomalous gold results at
the New Finish prospect.
Interpretation of preliminary data was completed by Southern Geoscience Consultants (Figure 9). The results are
summarised below:
•
•
•
Block 1 – shows subtle anomalous conductive trends with WNW orientations. This orientation coincides
with the strike of lithology. Several higher amplitude anomalies occur on the eastern block margin.
Block 2 – shows a conductive folded sequence evident in south-eastern corner of the block. A
separate conductive response coincides with the margin of the New Finish prospect.
Block 3 – shows a very strong conductive response shown along the north-eastern margin of the
block, this is likely to be a stratigraphic response. A number of discrete moderate strength anomalies
occur immediately southwest of the stratigraphic response.
13
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Fine fraction (-75µm) stream sediment sampling conducted in July-August 2022 returned elevated Gold and
Carlin Score values coincident with the previously identified mineralised trends (Figure 9). Elevated copper assays
highlight two new target areas. The northern anomaly at Cairn Hill Bore extends for 10km strike and is coincident
with the Nanjilgardy Fault Zone. The southern anomaly at Seven Mile Bend extends the southern base metal trend
from Ram Hole Creek to the south east into tenement E08/3262.
Desktop studies identified a 50km long thorium anomaly adjacent to the Blair Fault, a deep-seated regional scale
structure at the contact between the Ashburton Formation and the Capricorn Group. In December 2022 Cazaly
completed a helicopter supported rock chip sampling program to determine the prospectivity of the regional scale
thorium anomaly. 26 samples were collected along the thorium anomaly, 6 samples were collected at other points
of interest, and 3 samples were collected to assess a preliminary TEM anomaly along the Nanjilgardy fault on
tenement E08/3272, known as the Cheela Plains tenement.
Three rock chip samples collected on the Cheela Plains tenement
contained copper carbonates, visual estimates up to 3% and copper
sulphide mineralisation, visual estimates up to 5% (Figure 8). Analytical
results received for two of the three samples were above 10% copper,
with the highest assay being 32.32% copper (for further technical details
please refer to CAZ announcement dated 16 February 2023). The
mineralised copper trend continues to the south-east with anomalous
rock chip samples extending the anomaly over 2km strike.
Analytical results from the rock chip heli-samples over the 50km long
thorium anomaly which coincided with the sedimentary units of the
Capricorn group returned anomalous TREO above 0.5% with two (2)
samples above 1% TREO (full rock chip analysis is included in CAZ announcement dated 14 February 2023). Elevated
REE
lanthanum; 1,472ppm
neodymium; and 431ppm praseodymium. In addition, phosphorous results were also elevated to 4,600ppm.
include: 118ppm dysprosium; 179ppm gadolinium; 619ppm yttrium; 2,070ppm
Figure 8. Copper bearing rock chip samples
collected from Cheela Plains.
Figure 9. Regional scale mineralised trends and prospect locations within the Ashburton Project.
14
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Work on the project to date (Figure 9) has identified four extensive regional scale mineralised trends:
a.
b.
c.
d.
Two x 70km long gold-copper trends
A 50km long copper-base metals trend
A 50km long REE trend
and five project scale VTEM and geochemical targets, including a 10km gold trend at New Finish, and four
copper prospects: 3km trend at Ram Hole Creek, 7km trend at Warden Pool, 5km trend at Seven Mile Bend
and a 10km trend at Cairn Hill Well located along the Nanjilgardly fault zone.
Lyons Rare Earth Elements Project (CAZ 100%)
On 2 August 2023, the Company announced that it had secured over 1,000km2 of tenure within the emerging REE
district of the Gascoyne Province in Western Australia.
The tenure consists of a total of six tenements, that together form the Lyons Project a very prospective package of
ground in the Bangemall Basin (Figure 10). Four tenements were targeted and pegged by Cazaly around the Lyons
River Fault and Talga Fault, with one of the four tenements now granted.
The remaining two granted tenements along the Lyons River Fault (E09/2671 and E52/4040), consolidate the Lyons
Project via an exclusive binding option agreement to acquire up to 100% with private company Murchison REE Pty
Ltd (Murchison).
The terms of the agreement with Murchison were as follows:
Pay $50,000 (paid) for a 12-month exclusive option to acquire up to 100% of E09/2671 and E52/4040
1.
2. Cazaly may execute the option by;
a) Paying the vendors $30,000 in cash or shares at CAZ’s election to earn 50% project equity
b) Committing $200,000 to exploration expenditure within two years to earn 100% project equity
c) Upon the delineation of a minimum JORC compliant resource of 300,000oz Au (or metal
equivalent) paying $200,000 in cash/shares
d) Upon a Decision to Mine paying $1M in cash/shares
e) Murchison maintain a 1% NSR on the project
Figure 10. Lyons Project Location within the Bangemall Basin.
15
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
The Lyons River Fault and Talga Fault represent major crustal sutures in the central part of the Gascoyne Province
which provided a suitable plumbing system for the transportation of mineralised fluids. The Yangibana (Hastings
Technology Metals Ltd) and Yin (Dreadnought Resources Ltd) REE deposits are located along cross cutting
ferrocarbonatites structures adjacent to the Lyons River Fault. The Abra base metal deposit is associated with
splays off the Lyons River Fault.
The Edmund Group consists of a package of Proterozoic sediments within the Gascoyne Province. The sediments
are mostly siliciclastic and carbonate sediments deformed and metamorphosed during multiple orogenic events,
that gave rise to significant magmatic activity resulting in the emplacement of gabbroic to granitic stocks and
carbonatite instrusions across district. Dreadnought Resources have previously reported multiple mineralised
carbonatites within the Edmund Group in close proximity to the Lyons River Fault (DRE announcement dated 25 July
2023).
The Gascoyne region is highly prospective for rare earth elements (REE) as well as base metals.
Hastings Technology Metals Ltd (ASX: HAS) and Dreadnought Resources Ltd (ASX: DRE) REE projects are located
approximately 100 km northwest from Cazaly’s tenement package along the Lyons River Fault (Figure 10).
HAS is currently advancing construction of Yangibana which will produce a Mixed Rare Earth Carbonate (MREC)
rich in Neodymium (Nd) and Praseodymium (Pr). The project has an NPV of $466 million, a 15-year mine life and
current JORC resource of 27.4Mt @ 0.97% Total Rare Earths Oxides (TREO) (HAS announcement dated 5 May 2021).
Yangibana is under construction and development with first production planned for 2024 (HAS announcement
dated 7 June 2022).
DRE recently announced an updated resource for Yin Rare Earth Element (REE) Ironstone Complex of 20.06Mt
grading at 1.03% TREO. The resource covered only 4km, or ~10%, of the 43km long Yin REE Ironstone Complex (DRE
announcement dated 5 July 2023).
In addition, the Gascoyne region hosts the Abra Base Metals Mine, a lead-silver joint venture mining operation (60%:
Galena Mining Ltd and 40%: Toho Zinc Co., Ltd) which lies adjacent to the Lyons Project tenement package. The
Abra Mine, which has a JORC resource of 34.5Mt grading at 7.2% lead and 16g/t silver, produced first concentrate
(G1A announcement dated 13 January 2023) and achieved its first concentrate shipment (G1A announcement
dated 27 March 2023) from the port of Geraldton earlier this year.
Work has commenced on a compilation of all available historic data sets for the project. The data is being reviewed
in order to prioritise targets for initial field assessment. A study of available imagery has highlighted areas with
potential for ironstone outcrop. Broad GSWA geochemical sampling across the region has also indicated potential
for REE enrichment.
The process of target generation and prioritisation is close to being complete and it is expected that field work will
commence in late September 2023 and will consist of ground checks and prospecting where access is available.
NAMIBIA
Abenab Rare Earth Elements & Base Metals Project (CAZ 95%)
As announced on 7 November 2022, the Company applied for a new exploration licence (EPL 9110 - Abenab North).
The project is located in the northern region of Namibia through its 95% owned local subsidiary company Philco
One Hundred and Seventy-Three (Proprietary) Limited (“Philco”). The Abenab North project application has no
competing applications and covers an area of approximately 790 km2 (Figure 11). The project is considered to be
highly prospective for base metals and Rare Earth Elements (REE) mineralisation as evidenced from the results of
previous but limited exploration.
The project lies in the Otavi Mountain Land region of northern Namibia located approximately 450km by road from
the capital of Windhoek in an area comprising the towns of Tsumeb and Grootfontein. The region is a significant
well mineralised base metals province with historic production from several mines including Tsumeb, Kombat,
Abenab and the Berg Aukas mines. Tsumeb is a world-famous Cu-Pb-Zn-Ag-Ge-Cd mine renowned for its wealth
of rare and unusual minerals and was mined from 1897 to 1996.
16
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
For further technical information please
refer to CAZ announcement dated 7
November 2022.
The Environmental
Impact Assessment
(EIA) and draft Environmental Management
Plan (EMP) were completed by Alliance
Environmental Consultancy, covering all
proposed activities that will be conducted
within the license area such as surface
sampling, geophysical surveys, and drilling.
As part of the EIA process, an Environmental
Scoping Assessment and an independent
Heritage Impact study were completed. The
EIA and EMP were submitted to both the
Ministry of Mines and Energy and the
Ministry of Environmental Forestry and
Tourism.
The licence is still pending approval.
Figure 11. Location of critical mineral projects in Namibia.
Kaoko Lithium Project (CAZ 95%)
The Kaoko Lithium Project is located in northern Namibia, approximately 800km by road from the capital of
Windhoek and approximately 750km from the port of Walvis Bay (Figure 11). The area has excellent infrastructure,
with the Project only 50 km away from Opuwo, the regional capital, which has an airport and well-maintained
bitumen roads. In addition, the Project has access to the 320 MW Ruacana hydroelectric power station, and
transmission lines that run through both the western and eastern parts of the Project.
Cazaly previously identified a large lithium in soil anomaly at the Ohevanga Prospect measuring 12km x 10km. The
anomaly was defined with broadly spaced surface samples collected across a 1km grid and has recently been
followed up with infill surface sampling to better define and confirm the target. For further technical details please
refer to CAZ announcement dated 24 March 2023.
An application for a two-year licence extension is still pending approval.
OTHER INTERESTS
Joint Ventures
Mt Venn (CAZ 20%)
The Mt Venn Gold Project is located 125km northeast of Laverton in the North-eastern Goldfields Region of Western
Australia and covers approximately 400km2 of prospective greenstone sequence. The project area lies within the
Mount Venn-Yamarna-Dorothy Hills greenstone belt which is the most easterly major N-S striking greenstone belt
of the Yilgarn Craton.
The belt is considered highly prospective for gold and nickel and is positioned along the western limb of the
Yamarna Greenstone Belt that hosts Gold Road’s and Gold Fields’ 6Moz Gruyere Gold Mine. Together the Yilgarn
greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production and other base
metal and rare earth deposits.
The project is subject to an unincorporated Joint Venture between the operators Woomera Mining Limited
(Woomera, ASX:WML) (80%) and Cazaly (20%). Cazaly is free carried to PFS stage.
17
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
McKenzie Springs Joint Venture (CAZ 30%)
Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd (ASX:FIN)
over exploration licence E80/4808, the McKenzie Springs Project, located in the Kimberley region of Western
Australia. The project lies south along strike from the Savannah nickel-copper-cobalt mine owned by Panoramic
Resources Ltd (ASX:PAN).
In the upcoming dry season, FIN (JV Manager) has planned a gridded soils programme to identify new drill targets
for nickel, copper, graphite and other base/precious metals over the Springs Creek intrusive complex located
northeast of the project area. A field trip to Mackenzie Springs is planned for the upcoming dry season, once access
is available.
Royalties
Mineral Resources Limited (ASX: MIN) continued production activities at the Parker Range Iron Ore Mine. Cazaly, as
the royalty holder, is entitled to receive A$0.50/tonne of iron ore produced from the mine, once the first 10 million
tonnes of production have been reached.
Following the sale of the Hamersley Iron Ore Project in 2021, to Equinox Resources Limited (ASX:EQN), the Company
holds 15,000,000 EQN shares and 2,850,000 performance shares and retains a royalty interest of US$0.30/tonne in
the project. The project is located in the heart of the Pilbara iron ore province and currently has a total Mineral
Resource estimate of 343.2 Mt at 54.5% Fe (reported in compliance with JORC Code 2012 - refer to Pathfinder’s ASX
Announcement dated 24 January 2020). Equinox continues to advance feasibility studies to progress the
development of the Project.
CORPORATE
The Company had cash and investments of approximately $6.7 million at 30 June 2023.
Equity
Shares
On 25 November 2022, the Company issued 1 million fully paid ordinary shares in relation to a finder’s fee for the
Abenab North project in Namibia.
Options
On 5 August 2022, the Company issued 500,000 options (exercisable at $0.06 on or before 5 August 2024) in relation
to a finder’s fee for the Vanrock project.
On 25 November 2022, the Company issued 2 million options (exercisable at $0.047 on or before 25 November
2025) to Mr Jonathan Downes, a Non-Executive Director of Cazaly. The issue of the options was approved by
shareholders at the Company’s AGM held on 18 November 2022.
On 19 November 2022, 10 million options (exercisable at $0.0495) expired.
6.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Group will continue its mineral exploration activity on and around its exploration projects with the aim of
identifying commercial mineral resources. The Group also continues to assess other potential project opportunities
that will add value to its portfolio.
7.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
18
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
8.
AFTER BALANCE DATE EVENTS
On 24 July 2023, the Company issued 4,115,663 fully paid ordinary shares to Exiro Minerals Corp as part of a
consulting and finder’s fee agreement in relation to Canadian projects.
As announced on 7 August 2023, after the completion of due diligence, the Company moved to a 25% holding in
the Sundown Lithium Project after paying C$350,000 and issuing 19,065,535 fully paid ordinary shares to 1Minerals
Corp (issued on 11 August 2023).
A review of the Company’s investment portfolio was performed on 18 September 2023. The fair value of investments
at this time was $3,621,432 whilst at year end the fair value was $2,868,117. The movement in market value of
investments is wholly attributable to share market fluctuations since the year end date.
Apart from the above, the Directors are not aware of any matters or circumstances at the date of the report, other
than those referred to in this report or the financial statements or notes thereto, that has significantly affected or
may significantly affect the operations, the results of operations or the state of affairs of the Group in subsequent
financial years.
9.
INFORMATION ON DIRECTORS
Clive Jones
Chairman
Experience
Mr Jones has been involved in mineral exploration for over 30 years and has sound
experience in a range of commodities including gold, base metals, lithium, mineral
sands, iron ore, uranium and industrial minerals both in Australia and overseas. Mr
Jones is a founding Director of Cazaly Resources Ltd and has proven corporate and
exploration success. He is also a Director of Bannerman Energy Limited which is listed
on the ASX and on the Namibian Stock Exchange.
Equity Holdings
23,898,469 fully paid ordinary shares
Listed Directorships
Current
Bannerman Energy Ltd
Tara French
Managing Director
Experience
Equity Holdings
is a geologist with 25 years mining and exploration experience,
Ms French
predominantly in Western Australia and before joining Cazaly, led a large team as
General Manager of Exploration for Regis Resources Limited where she was employed
for 14 years and played a key role in the transition and growth of Regis over that time.
Ms French has experience in project evaluation, resource estimation, open cut, and
underground mining across multiple commodities including, gold, nickel, and copper.
She also holds an honours degree in Economic Metalliferous Geology, is a Member of
the Australian Institute of Geoscientists, and is a Graduate Member of the Australian
Institute of Company Directors.
1,250,000 fully paid ordinary shares
5,000,000 performance rights (2m performance rights vested on
issue, 1.5m
performance rights vested on 12 October 2022 and 1.5m performance rights will vest
on 12 October 2023)
2,000,000 options exercisable at $0.067 expiring 19 November 2023
1,500,000 options exercisable at $0.056 expiring 12 October 2024
1,500,000 options exercisable at 150% VWAP expiring 12 October 2025 (vest 12 October
2023)
Listed Directorships
Current
Lefroy Exploration Ltd
19
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Terry Gardiner
Independent Non-Executive Director
Experience
Mr Gardiner has been involved in capital markets, corporate advising, stockbroking &
derivatives trading for over 20 years. For the past twelve years Mr Gardiner has been
an Executive Director of boutique broker Barclay Wells Ltd. He is also holds other Non-
Executive Director roles with various ASX listed and unlisted public companies.
Equity Holdings
9,717,893 fully paid ordinary shares
Listed Directorships
Current
Galan Lithium Limited
Roto-Gro International Limited
Charger Metals NL
Jonathan Downes
Independent Non-Executive Director
Experience
Mr Downes, BSc (GeoPhys) MAIG, has over 30 years’ experience in the mineral and
energy sectors and specialises in project identification and development and has
worked in various geological and corporate capacities. Jonathan has experience with
nickel, gold and base metals and electrical energy solutions. He has been involved
with numerous private and public capital raisings. Mr Downes is currently the
Managing Director of Kaiser Reef Limited and is on the boards of Brightstar Resources
Limited and Nickel X Limited.
Equity Holdings
300,100 fully paid ordinary shares
2,000,000 options exercisable at $0.047 expiring 25 November 2025
Listed Directorships
Current
Kaiser Reef Limited
Brightstar Resources Limited
Nickel X Limited
Last three years
Galena Mining Limited (resigned October 2021)
Corazon Mining Limited (resigned September 2023)
Mike Robbins - Company Secretary
Mr Robbins has over 25 years resource industry experience gathered at both operational and corporate levels, both
within Australia and overseas. During that time, he has held numerous project and head office roles and is also the
Company Secretary for Galan Lithium Limited.
10.
ENVIRONMENTAL
The Group has a policy of complying with or exceeding its environmental performance obligations. The Board
believes that the Group has adequate systems in place for the management of its environmental requirements.
The Group aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is
aware of and is in compliance with all environmental legislation. The Directors are not aware of any breach of
environmental legislation for the financial year under review.
11.
REMUNERATION REPORT - AUDITED
This report details the nature and amount of remuneration for each director of the Company.
20
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Remuneration Policy
The remuneration policy of Cazaly has been designed to align Director and executive objectives with shareholder
and business objectives by providing a fixed remuneration component which is assessed on an annual basis in
line with market rates and Group performance. The further tailoring of goals between shareholders and the
Directors and executives is achieved through the issue of equity to the directors and executives to encourage the
alignment of personal and shareholder interest.
The Cazaly Board believes the current remuneration policy is appropriate and effective in its ability to attract and
retain high quality personnel in order to achieve its strategic objectives and create value for shareholders.
The Group is exploration and development focussed, and therefore speculative in terms of performance.
Consistent with attracting and retaining talented people, the Directors and executives are paid market rates
associated with individuals in similar positions, within the same industry. Where necessary, independent advice is
obtained to confirm that executive remuneration is in line with market practice and is reasonable in the context of
Australian executive reward practices.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed or carried
forward on the balance sheet for any time that is attributable to exploration and evaluation. Any awarded options
are valued using the Black-Scholes methodology.
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of,
the directors. Non-executive directors receive a fixed fee for time, commitment and responsibilities and may be
paid remuneration as the directors determine where the director performs services outside the scope of the
ordinary duties of the director. Non-executive directors may also be paid expenses properly incurred in attending
meetings or otherwise in connection with the Company’s business.
The Company’s constitution provides that the non-executive directors, as a whole, may be paid or provided fees
or other remuneration for their services as a director of the Company. 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.
Fees for non-executive Directors are not linked to the performance of the Company. However, to align Directors’
interests with shareholder interests, all Directors are encouraged to hold shares in the company.
Employment Details
All Directors have engagement contracts in place.
Mr Clive Jones is currently the Chairman of the Company and is engaged on a part-time basis. His annual
remuneration (from 1 July 2023) is split between a monthly consulting fee of $5,000 per month and an annual salary
component of $60,000 (plus statutory superannuation).
Mr Terry Gardiner and Mr Jonathan Downes, are Non-Executive Directors and are both employed by the Company
on an annual salary of $50,000 (plus statutory superannuation).
Ms Tara French is the Company’s Managing Director and is on an annual salary of $280,000 (plus statutory
superannuation). Should Ms French or the Company wish to terminate her contract, either Ms French or the
Company are required to give written notice of at least three (3) months before the effective date of termination.
Termination payments are not payable under the circumstances of unsatisfactory performance.
21
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Details of Remuneration for Years Ended 30 June 2023 & 30 June 2022
The remuneration for key management personnel of the company during the year was as follows:
Short-term Benefits
Post
Employment
Benefits
Other
Long-
term
Benefits
Share based
Payment
Total
Performance
Related
Cash,
Cash
Non-cash
Other
Super
Other
Equity Options
salary &
profit
Benefit
bonuses
share
& Rights
(ii) (iv)
$
$
Tara French – Managing Director (i)
2023
2022
280,000
271,720
-
-
$
-
-
$
-
-
Clive Jones – Chairman and Executive Director (ii)
2023
2022
150,000
194,238
-
-
-
-
Terry Gardiner – Non-Executive Director
2023
2022
50,000
50,000
-
-
-
-
-
-
-
-
$
29,400
27,172
6,300
6,000
5,250
5,000
$
-
-
-
-
-
-
Jonathan Downes – Non-Executive Director (appointed 19 November 2021)
2023
2022
50,000
30,833
Total Remuneration
2023
2022
530,000
546,791
-
-
-
-
-
-
-
-
-
-
-
-
5,250
3,083
46,200
41,255
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
$
-
$
309,400
%
-
307,617 606,509
50.7%
-
-
-
-
156,300
200,238
55,250
55,000
-
-
-
-
24,460
79,710
30.1%
-
33,916
-
24,460
600,660
4.1%
307,617 895,663
34.3%
i) Ms French commenced with Cazaly on 12 July 2021 and was appointed to the Board on 12 October 2021.
ii) Share-based payments for the issue of 5m performance rights ($230,000) and 5m options ($77,617), included in Ms
French’s employment conditions, have been fully expensed in FY 2022. The issue of the performance rights and options
was approved by shareholders on 19 November 2021.
iii) Aggregate short-term benefits of $150,000 (2022: $194,238) were paid or were due and payable to Clive Jones or
Widerange Corporation Pty Ltd, a company controlled by Mr Clive Jones, for the provision of corporate and technical
management services to the Company. This amount includes a salary of $60,000.
iv) Share-based payments for the issue of 2m options were included in Mr Downes’ employment conditions and were fully
expensed in FY 2023. The issue of the options was approved by shareholders on 18 November 2022.
Voting and comments made at the Company’s 2022 Annual General Meeting
The adoption of the Remuneration Report for the financial year ended 30 June 2022 was put to the shareholders of
the Company at the Annual General Meeting held 18 November 2022. The Company received 87% of the vote, of
those shareholders who exercised their right to vote, in favour of the remuneration report for the 2022 financial year.
The resolution was passed without amendment by a poll and on proxy vote. The Company did not receive any
specific feedback at the AGM or throughout the year on its remuneration practices.
Related Party Information
The Company received a total of $69,883 (2022: $113,950) under an Office Services Agreement with Galan Lithium
Ltd. Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive Director, Mr
Terry Gardiner, is also a director of Cazaly Resources Ltd. The agreement was terminated on31 January 2023.
The Company paid $57,480 (2022: $57,480) for the provision of Company Secretarial services to Galan Lithium Ltd.
Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive Director, Mr Terry
Gardiner, is also a director of Cazaly Resources Ltd.
22
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
Key Management Personnel (KMP) Equity Holdings
SHARES
30 June 2023
C. Jones
T. French (i)
T. Gardiner
J. Downes (ii)
30 June 2022
C. Jones
T. French (i)
T. Gardiner
J. Downes (ii)
OPTIONS
30 June 2023
C. Jones
T. French (i)
T. Gardiner
Balance
Granted as
Options
Net Change
01-07-22
Remuneration
Exercised
Other
Balance
30-06-23
22,829,904
1,000,000
9,467,893
200,100
33,497,897
Balance
01-07-21
20,829,904
-
7,750,000
-
28,579,904
Granted as
Options
Net Change
Remuneration
Exercised
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,068,565
23,898,469
-
250,000
100,000
1,418,565
2,000,000
1,000,000
1,717,893
200,100
1,000,000
9,717,893
300,100
34,916,462
Balance
30-06-22
22,829,904
1,000,000
9,467,893
200,100
(4,917,993)
33,497,897
Balance
01-07-22
4,000,000
5,000,000
2,000,000
Issued
Acquired
(iv)
-
-
-
Exercised
Lapsed/
Other
Balance
30-06-23
Vested
during the
year
Vested
and
exercisable
-
-
-
-
(4,000,000)
-
-
-
-
5,000,000
1,500,000
3,500,000
(2,000,000)
-
-
-
-
2,000,000
2,000,000
2,000,000
J. Downes (ii)
-
2,000,000
11,000,000
2,000,000
-
(6,000,000)
7,000,000
3,500,000
5,500,000
Balance
01-07-21
Issued
Acquired `
Exercised
Lapsed/
Other
Balance
30-06-22
Vested
during the
year
Vested
and
exercisable
4,000,000
-
-
5,000,000
2,000,000
-
-
-
10,000,000
5,000,000
-
-
-
-
-
-
-
-
-
4,000,000
-
4,000,000
5,000,000
2,000,000
2,000,000
2,000,000
-
-
-
2,000,000
-
(4,000,000)
11,000,000
2,000,000
8,000,000
30 June 2022
C. Jones
T. French (i)
T. Gardiner
J. Downes (ii)
(i) Ms French appointed to the Board as Managing Director on 12 October 2021.
(ii) Mr Downes appointed a Non-Executive Director on 19 November 2021.
(iii) Ms French issued with a total of 5m options as approved by shareholders on 19 November 2021. 2,000,000 options
are exercisable at $0.067 on or before 19 November 2023, 1,500,000 options are exercisable at $0.056 or before 12
October 2024 and 1,500,000 options are exercisable at 150% of the 5-day VWAP prior to vesting date (12 October
2023) exercisable on or before 12 October 2025
(iv) Mr Downes issued with 2m options as approved by shareholders on 18 November 2022. Options are exercisable at
$0.047 on or before 25 November 2025.
Performance Rights (awarded to Ms French and expire on 11 October 2025 – approved by shareholders on 19
November 2021)
i)
ii)
iii)
2,000,000 Performance Rights - vested upon issue;
1,500,000 Performance Rights – vested on 12 October 2022; and
1,500,000 Performance Rights - vest on 12 October 2023
End of Remuneration Report (Audited).
23
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
12.
INDEMNIFYING OFFICERS OR DIRECTORS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every Director and
Officer, or agent of the Company shall be indemnified out of the property of the Company against any liability
incurred by them in their capacity as an Officer or agent of the Company or any related corporation in respect of
any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal.
No indemnification has been paid with respect to the Company’s auditor.
The Company has insurance policies in place for all Directors and Officers.
13.
OPTIONS
Options forfeited or cancelled
During, or since the end of the financial year, no options were forfeited or cancelled.
Options Expired or Lapsed
On 19 November 2022, 10 million options (exercisable at $0.0495) expired.
Options on Issue
At the date of this report the Company had the following options on issue:
Expiry Date
8/3/2024
11/6/24
19/11/23
12/10/24
12/10/25
5/8/24 (ii)
25/11/25 (iii)
Exercise Price
Options on Issue
$0.0500
$0.0660
$0.0670
$0.056
(i)
$0.06
$0.047
2,000,000
500,000
2,000,000
1,500,000
1,500,000
500,000
2,000,000
(i)
(ii)
(iii)
Exercisable at a price that is 150% of the VWAP for CAZ shares traded on the ASX over the 5 trading days
immediately preceding the vesting date (12 October 2023).
Issued as a finder’s fee for the Vanrock project.
Issued to a Non-Executive Director on 25 November 2022 (approved at Company’s AGM on 18 November
2022).
Option holders do not have any rights to participate in any issue of shares or other interests in the Company or any
other entity.
14.
PROCEEDINGS ON BEHALF OF GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or
any part of those proceedings. The Group was not a party to any such proceedings during the year.
15.
AUDITORS INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2023 has been received and can be found
on page 26.
24
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2023
16.
NON-AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services performed during the year by the Group’s
auditors is compatible with the general standard of independence for auditors imposed by the Corporations Act
2001. No other fees were paid or payable to the auditors for non-audit services performed during the year ended
30 June 2023.
This report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the
Board of Directors.
Tara French
Managing Director
22 September 2023
Competent Persons Statements
The information contained herein that relates to Exploration Results is based upon information compiled or
reviewed by Ms Tara French and Mr Don Horn, who are employees of the Company. Ms Tara French and Mr Horn
are both Members of the Australasian Institute of Geoscientists and have sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to the activity which they are
undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Tara French and Mr Horn both consent
to the inclusion of their names in the matters based on the information in the form and context in which it appears.
(1) The information in this report that relates to the Mount Angelo North Mineral Resource is based on information
compiled by Ms Vanessa O’Toole Principle Consultant of Honey Mining and Resources Pty Ltd, a Competent Person,
who is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Ms Vanessa O’Toole consents to the inclusion in the report of the matters
based on her information in the form and context in which it appears.
(2) The information in this report that relates to the Bommie porphyry copper mineral resource estimation is based
on work completed by Mr. Stephen Hyland, a Competent Person and Fellow of the AusIMM. Mr. Hyland is Principal
Consultant Geologist with Hyland Geological and Mining Consultants (HGMC), who is a Fellow of the Australian
Institute of Mining and Metallurgy and holds relevant qualifications and experience as a qualified person for public
reporting according to the JORC Code in Australia. Mr Hyland is also a Qualified Person under the rules and
requirements of the Canadian Reporting Instrument NI43-101. Mr Hyland consents to the inclusion in this report of
the information in the form and context in which it appears.
from previous company announcements
The information in this report that relates to Resource Estimates, Exploration targets and Exploration results is
extracted
to view on
https://www.cazalyresources.com.au. The Company confirms that it is not aware of any new Exploration
information or data that materially affects the information included in the original market announcements. The
company confirms that the form and context in which the Competent Person’s findings are presented have not
been materially modified from the original market announcements.
the ASX, all are available
to
Forward Looking Statement
This annual report may include forward-looking statements. Forward-looking statements include, but are not
limited to, statements concerning Cazaly’s planned exploration program(s) and other statements that are not
historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”,
"potential," "should," and similar expressions are forward looking statements. Although Cazaly Resources Ltd
believes that its expectations reflected in these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that actual results will be consistent with these
forward-looking statements. The forward-looking statements in this annual report reflect views held only as at the
date of this annual report.
25
To the Board of Directors
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead audit Director for the audit of the financial statements of Cazaly Resources Limited for the financial
year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated this 22nd day of September 2023
Perth, Western Australia
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For Year Ended 30 June 2023
Revenue from continuing operations
Gain/(Loss) on sale of financials assets
Gain on sale of tenement
Other Income
Employee benefits
Finance Costs
Depreciation
Administrative expenses
Compliance and regulatory expenses
Occupancy expenses
Written-off exploration expenditure
Equity based payments
Impairment of financial assets
Profit/(loss) before income tax
Income tax (expense)/ benefit
Profit/(loss) for the year from continuing operations
Other comprehensive income
Total comprehensive income/(loss) for the year
Earnings/(loss) for the year attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive income/(loss) attributable to:
Members of the parent entity
Non-controlling interest
Note
2
2
3
3
6
2023
$
308,958
(63,562)
-
241,912
(544,194)
(3,109)
(80,044)
(435,494)
(223,607)
(85,169)
(636,964)
(29,270)
(574,414)
(2,124,956)
-
(2,124,956)
-
(2,124,956)
(2,124,956)
-
(2,124,956)
(2,124,956)
-
(2,124,956)
Earnings/(loss) per share from continuing and discontinuing
operations
Basic weighted average earnings/(loss) per share
Diluted weighted average earnings/(loss) per share
18
18
(0.57)
(0.57)
The accompanying notes form part of these financial statements.
2022
$
220,820
325,618
1,472,892
61,580
(529,844)
(7,746)
(82,703)
(297,200)
(259,544)
(81,630)
(186,809)
(307,617)
(2,068,396)
(1,740,579)
-
(1,740,579)
-
(1,740,579)
(1,740,524)
(55)
(1,740,579)
(1,740,524)
(55)
(1,740,579)
Cents
(0.48)
(0.48)
27
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at 30 June 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Financial assets
Property, plant and equipment
Exploration and evaluation assets
Rights of use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Lease liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Controlling entity interest
Non-controlling interest
TOTAL EQUITY
Note
2023
$
2022
$
7
8
8
9
10
11
27
12
13
27
27
14
15
16
3,818,431
23,844
6,901,309
63,979
3,842,275
6,965,288
49,679
2,868,117
20,571
7,537,894
11,637
49,679
3,882,311
30,750
5,335,775
81,502
10,487,898
9,380,017
14,330,173
16,345,305
183,917
105,700
7,052
201,651
123,750
81,662
296,669
407,063
-
-
296,669
7,052
7,052
414,115
14,033,504
15,931,190
26,872,021
503,690
(13,326,581)
14,049,130
(15,626)
26,674,021
729,858
(11,457,063)
15,946,816
(15,626)
14,033,504
15,931,190
The accompanying notes form part of these financial statements.
28
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended 30 June 2023
Issued Capital (Accumulated
Losses)
Option Reserve
$
$
$
Non-
Controlling
Interest
$
Total
$
Balance at 30 June 2021
26,620,021
(9,716,539)
422,241
(15,571)
17,310,152
Earnings/(loss) for the year
Other comprehensive income
for the year
Total comprehensive
income/(loss) for the year
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
Shares to be issued
Options issued
Options expired
Option reserve
-
-
-
(1,740,524)
-
(1,740,524)
-
-
-
(55)
(1,740,579)
-
-
(55)
(1,740,579)
54,000
-
-
-
-
-
-
-
-
-
-
-
-
-
307,617
-
-
-
-
-
54,000
-
-
-
307,617
Balance at 30 June 2022
26,674,021
(11,457,063)
729,858
(15,626)
15,931,190
Earnings/(loss) for the year
Other comprehensive income
for the year
Total comprehensive
income/(loss) for the year
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
Shares to be issued
Options issued
Options expired
Option reserve
-
-
(2,124,956)
(2,124,956)
-
-
30,000
168,000
-
-
-
-
-
-
255,438
-
-
-
-
(255,438)
29,270
-
-
-
-
-
-
-
(2,124,956)
(2.124.956)
30,000
168,000
-
-
29,270
Balance at 30 June 2023
26,872,021
(13,326,581)
503,690
(15,626)
14,033,504
The accompanying notes form part of these financial statements.
29
CONSOLIDATED CASH FLOW
STATEMENT
For the year ended 30 June 2023
Cash Flows from Operating Activities
Receipts from services agreements
Cash received from government grant
Payments to suppliers and employees
Interest received and bill discounts received
Note
2023
$
2022
$
185,695
-
(1,082,639)
123,262
263,611
-
(1,111,038)
27,124
Net cash used in operating activities
19
(773,682)
(820,305)
Cash Flows From Investing Activities
Purchase of property, plant & equipment
Purchase of equity investments
Payments for exploration and evaluation
Payments for purchase of exploration assets
Proceeds from sale of equity investments
Proceeds from sale of exploration assets (net of transaction
costs)
Proceeds from term deposit bond
-
(231,651)
(2,896,251)
(303,428)
602,584
-
-
(23,508)
(960,156)
(1,392,878)
(321,754)
826,218
-
-
Net cash used in investing activities
(2,828,746)
(1,872,078)
Cash Flows from Financing Activities
Proceeds from issue of share
Proceeds from conversion of options
Net cash provided by financing activities
-
-
-
-
-
-
Net increase/(decrease) in cash held
(3,082,878)
(2,692,381)
Cash and cash equivalents at beginning of the financial
year
6,901,309
9,593,690
Cash and cash equivalents at end of the financial year
7
3,818,431
6,901,309
The accompanying notes form part of these financial statements.
30
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements and notes represent those of Cazaly Resources Limited (the Company or
Cazaly) and its controlled entities (the Group). Cazaly Resources Limited is a listed public company, incorporated and
domiciled in Australia.
The financial statements were authorised for issue on 22 September 2023 by the Directors of the Company.
Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001. The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Australian Accounting Standards set out in accounting policies that the AASB has concluded would result in financial
statements containing relevant and reliable information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International
Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of these
financial statements are presented below and have been consistently applied unless otherwise stated.
These financial statements have been prepared on an accruals basis and are based on historical costs, modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Going Concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Group incurred a loss after tax for the year of $2,124,956 (2022: $1,740,579) and net cash outflows from operating
activities of $773,682 (2022: $820,305). There was a working capital surplus of $3,545,606 at 30 June 2023 compared
to a surplus of $6,558,225 at 30 June 2022. The Company also has access to financial assets that are valued at
$2,868,117 (2022: $3,882,311).
Pending the outcome of various applications, the Group could have lease and exploration commitments of $974,256
(2022: $605,969) due within the next twelve months.
The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to
meet all commitments and working capital requirements for the 12 month period from the date of signing this financial
report. Based on the cash flow forecasts and other factors referred to above, the Directors are satisfied that the going
concern basis of preparation is appropriate because:
-
-
-
the Directors have an appropriate plan to raise additional funds as and when it is required. In light of the Group’s
current exploration projects, the Directors believe that the additional capital required can be raised in the
market; and
the Directors have an appropriate plan to contain certain operating and exploration expenditure if appropriate
funding is unavailable; and
the Directors will divest its interest in financial assets held for trading as and when required to fund ongoing
expenditure.
(a)
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by the
Company at the end of the reporting period. A controlled entity is any entity over which the Company has the power
to govern the financial and operating policies so as to obtain benefits from the entity’s activities. Control will generally
exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity.
In assessing the power to govern, the existence and effect of holdings of actual and potential voting rights are also
considered.
31
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
Where controlled entities have entered or left the Group during the year, the financial performance of those entities
are included only for the period of the year that they were controlled. A list of controlled entities, as at 30 June 2023 is
contained in Note 21 to the financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the
Group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with those adopted by the Company.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are shown
separately within the Equity section of the consolidated Statement of Financial Position and Statement of Profit or Loss
and other Comprehensive Income. The non-controlling interest in the net assets comprises their interests at the date
of the original business combination and their share of changes in equity since that date.
(b)
Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment. The carrying amount of plant
and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these
assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the
asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present
values in determining recoverable amounts.
(c)
Depreciation
Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line 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 depreciation rates used for each class of depreciable assets are plant and equipment (40%), office furniture and
equipment (18%) and motor vehicles (22.5%).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period. The value for office furniture and equipment was written down to nil at 30 June 2023.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the Statement of Profit or Loss and other Comprehensive Income. When revalued assets are sold,
amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
(d)
Exploration, Evaluation and Development Expenditure
Costs incurred during exploration and evaluations relating to an area of interest are accumulated. Costs are carried
forward to the extent they are expected to be recouped through successful development, or by sale, or where
exploration and evaluation activities have not yet reached a stage to allow a reasonable assessment regarding the
existence of economically recoverable reserves. In these instances the entity must have rights of tenure to the area of
interest and must be continuing to undertake exploration operations in the area.
Accumulated costs carried forward in respect of an area of interest that is abandoned 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 will be 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 capitalise
costs in relation to that area of interest.
Costs of site restoration are provided over the life of the project from when exploration commences and are included
in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and
building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits.
Such costs have been estimated of future costs, current legal requirements and technology on an undiscounted basis.
32
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
(e)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the
legal ownership, are transferred to entities in the consolidated group are classified as finance leases. Finance leases
are capitalised by recording an asset and a liability equal to the present value of the minimum lease payments,
including any guaranteed residual values. Leased assets are depreciated on a straight-line basis over the shorter of
their estimated useful lives or the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged
as expenses in the periods in which they are incurred.
(f)
Financial Instruments
Financial Assets
Initial Recognition and Measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables that do
not contain a significant financing component or for which the Group has applied the practical expedient, the Group
initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit
or loss, transaction costs.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to
generate cash flows. The business model determines whether cash flows will result from collecting contractual cash
flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group
commits to purchase or sell the asset.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at
fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
net changes in fair value recognised in the statement of profit or loss.
This category includes listed equity investments which the Group had not irrevocably elected to classify at fair value
through OCI. Dividends on listed equity investments are also recognised as other income in the statement of profit or
loss when the right of payment has been established.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
33
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
• The rights to receive cash flows from the asset have expired; or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement
and
either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
;
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain
cases, the Group may also consider a financial asset to be in default when internal or external information indicates
that the Group is unlikely to receive outstanding contractual amounts in full before taking into account any credit
enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering
the contractual cash flows
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables as appropriate.
All financial liabilities are recognised at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
The Group’s financial liabilities include trade and other payables.
(g)
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks and other short-term highly liquid
investments with maturity dates of three to six months or less.
(h)
Trade and Other Receivables
Trade receivables, which generally have 30-60 day terms, are recognised and carried at original invoice amount less
an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence
that the entity will not be able to collect the debts. Bad debts are written off when identified.
(i)
Revenue and Other Income
Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised
on a proportional basis taking into account the interest rates applicable to the financial assets. Revenue from the
rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
(j)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired.
The assessment will include the consideration of external and internal sources of information including dividends
received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such
an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset,
being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying value. Any excess of
the asset’s carrying value over its recoverable amount is recognised immediately in profit or loss, unless the asset is
carried at a revalued amount in accordance with another standard (eg in accordance with the revaluation model in
AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other
standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill
and intangible assets with indefinite lives.
34
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
(k)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office (“ATO”). In these circumstances the GST is recognised as part of the
cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of
financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is
included as a current asset or liability in the statement of financial position.
Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash
flows.
(l)
Taxation
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 reporting date. 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 reporting date. 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.
Cazaly and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under tax
consolidation legislation.
(m)
Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the company prior to the end of the financial year that are unpaid and arise when the company becomes
obliged to make future payments in respect of the purchase of these goods and services.
35
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
(n)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation
at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows.
(o)
Share Based Payments
The Group operates equity-settled share-based payment employee share and option schemes. The fair value of the
equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting
period, with a corresponding increase to an equity account. Share-based payments to non-employees are measured
at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the
fair value of the good or services cannot be reliably measured and are recorded at the date the goods or services are
received. The corresponding amount is shown in the option reserve.
The fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using a Black–
Scholes pricing model which incorporates all market vesting conditions. The number of shares and options expected
to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services
received as consideration for the equity instruments granted shall be based on the number of equity instruments that
eventually vest.
(p)
Issued Capital
Issued and paid-up capital is recognised at the fair value of the consideration received by the Company. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share
proceeds received.
(q)
Earnings Per Share
Basic earnings per share is calculated as net earnings attributable to members, adjusted to exclude costs of servicing
equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary
shares, adjusted for a bonus element.
Diluted earnings per share is calculated as net earnings attributable to members, adjusted for costs of servicing equity
(other than dividends) and preference share dividends; the after tax effect of dividends and interest associated with
dilutive potential ordinary shares that would have been recognised as expenses; and other non-discretionary changes
in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by
the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
(r)
Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the
end of the reporting period. Employee benefits that are expected to be settled within one year have been measured
at the amounts expected to be paid when the liability is settled.
(s)
Interest in Joint Operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
When a Group entity undertakes its activities under joint operations, the Group as a joint operator recognises in relation
to its interest in a joint operation:
36
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
•
•
•
•
•
its assets, including its share of any assets held jointly;
its liabilities, including its share of any liabilities incurred jointly;
its revenue from the sale of its share of the output arising from the joint operation;
its share of the revenue from the sale of the output by the joint operation; and
its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in
accordance with the AASBs applicable to the particular assets, liabilities, revenues and expenses.
When a Group entity transacts with a joint operation in which a Group entity is a joint operator (such as a sale or
contribution of assets), the Group is considered to be conducting the transaction with the other parties to the joint
operation, and gains and losses resulting from the transactions are recognised in the Group's consolidated financial
statements only to the extent of other parties' interests in the joint operation.
When a Group entity transacts with a joint operation in which a Group entity is a joint operator (such as a purchase of
assets), the Group does not recognise its share of the gains and losses until it resells those assets to a third party.
(t)
Critical Accounting Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future
periods affected.
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based
on current trends and economic data, obtained both externally and within the group.
Key Judgements –Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current. These costs
are carried forward in respect of an area that has not at balance sheet date reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves, refer to the accounting policy stated in note 1(d).
Key Judgements - Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by an internal valuation using a
Black-Scholes option pricing model.
Key Judgments – 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 company’s
development and its current environmental impact the directors believe such treatment is reasonable and
appropriate.
Key Estimate – Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best
estimates of directors. These estimates take into account both the financial performance and position of the company
as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has
been made for pending or future taxation legislation. The current income tax position represents that directors’ best
estimate, pending an assessment by the Australian Taxation Office.
(u)
Fair value measurements
The Group measures and recognises the asset, ‘Financial assets held for trading’ at fair value on a recurring basis after
initial recognition.
The Group does not subsequently measure any liabilities at fair value on a non-recurring basis.
37
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
(i) Fair Value Hierarchy
AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy,
which categorises fair value measurements into one of three possible levels based on the lowest level that an input
that is significant to the measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements based on quoted
prices (unadjusted) in active
markets for identical assets or
liabilities that the entity can access
at the measurement date.
Measurements based on inputs
other than quoted prices included in
Level 1 that are observable for the
asset or liability, either directly or
indirectly.
Measurements based on
unobservable inputs for the asset or
liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one
or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
(ii) Valuation techniques
The Company selects a valuation technique that is appropriate in the circumstances and for which sufficient data is
available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation technique selected by the Company is the
Market approach whereby valuation techniques use prices and other relevant information generated by market
transactions for identical or similar assets or liabilities.
When selecting a valuation technique, the Company gives priority to those techniques that maximise the use of
observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such
as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is
not available and therefore are developed using the best information available about such assumptions are
considered unobservable.
The following table provides the fair values of the Company’s assets and liabilities measured and recognised on a
recurring basis after initial recognition and their categorisation within the fair value hierarchy:
Recurring fair value measurements
Note
Level 1
Level 2
Level 3
$
$
$
30 June 2023
Financial assets at fair value through profit or
loss:
-
Australian listed shares at fair value
2,868,117
2,868,117
-
-
30 June 2022
Recurring fair value measurements
Note
Level 1
Level 2
Level 3
$
$
$
Financial assets at fair value through profit or
loss:
-
Australian listed shares at fair value
3,882,311
3,882,311
-
-
-
-
-
-
Total
$
2,868,117
2,868,117
Total
$
3,882,311
3,882,311
38
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
(v) Revenue Recognition
Grant revenue
Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a
systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When
the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related
asset.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts
and released to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the
benefits of the underlying asset by equal annual instalments.
Operating revenue
Revenue from the rendering of services is recognised upon the delivery of the service to the customer.
Interest revenue
Interest revenue is recognised using the effective interest rate method.
(w) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
i)
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
date less any lease incentives received. Right-of-use assets (office premises) are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets. This is 3 years.
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of
a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
ii)
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of
a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the
lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
39
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset.
The Group’s lease liabilities are included in Interest-bearing loans and borrowings, refer note 27.
iii)
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment
(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment
that are considered to be low value. Lease payments on short-term leases and leases of low value assets are
recognised as expense on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms
and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised
over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in
which they are earned.
(x) New, revised or amending accounting standards and interpretations adopted
Adoption of new and revised Accounting Standards
The Group has adopted all new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board that are relevant to its operations.
Standards and Interpretations in issue not yet adopted
The Group has reviewed the new and revised Standards and Interpretations on issue not yet adopted for the year
ended 30 June 2023 and determined that there is no material impact of the Standards and Interpretations in issue not
yet adopted by the Company.
40
Profit/(loss) before income tax from continuing operations includes the following specific expenses:
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
2.
REVENUE & OTHER INCOME
Revenue from Continuing Operations
-
-
interest received
recoupment of office costs on-charged
Other Income
-
-
government grant received
other
3.
PROFIT/(LOSS) FOR THE YEAR
Expenses
Administrative expenses
Consulting
Advertising, printing and stationery
Travel and accommodation
Memberships
Insurance
Other
Compliance and regulatory expenses
ASX, ASIC, registry and secretarial
Legal
Employee Benefits
Superannuation
4.
KEY MANAGEMENT PERSONNEL
Interests of Key Management Personnel
2023
$
2022
$
123,262
185,696
308,958
162,397
79,515
241,912
81,188
63,912
51,762
35,261
39,831
163,540
435,494
156,647
66,960
223,607
27,123
193,697
220,820
-
61,580
61,580
55,618
19,219
17,066
14,595
32,596
158,107
297,201
146,689
112,755
259,444
91,354
90,640
Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or payable to
each member of the Company’s key management personnel for the year ended 30 June 2023. The totals of
remuneration paid to key management personnel of the Company during the year are as follows:
Short-term employee benefits
Post-employment benefits
Termination benefits
Other long-term benefits
Share based payments
A total of $280,174 (2022: $355,302) was capitalised to exploration expenditure.
530,000
46,200
-
-
29,270
605,470
546,791
41,255
-
-
307,617
895,663
41
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
Related Party Information
The Company received a total of $69,883 (2022: $113,950) under an Office Services Agreement with Galan Lithium Ltd.
Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive Director, Mr Terry
Gardiner, is also a director of Cazaly Resources Ltd. The agreement was terminated on 31 January 2023.
The Company paid $57,480 (2022: $57,480) for the provision of Company Secretarial services to Galan Lithium Ltd.
Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive Director, Mr Terry
Gardiner, is also a director of Cazaly Resources Ltd.
5.
AUDITORS REMUNERATION
Remuneration of the auditor for:
- Auditing or reviewing the financial report
6.
INCOME TAX EXPENSE
The components of the tax expense/(income) comprise:
Current tax
Deferred tax
2023
$
2022
$
29,933
29,933
25,290
25,290
-
-
-
-
-
-
(a)
The prima facie tax on profits/(losses) from ordinary activities
before income tax is reconciled to the income tax as follows:
Profit/(loss) from continuing operations
(2,124,956)
(1,740,579)
Prima facie tax benefit on loss from ordinary activities before income
tax at 25% (2022: 25%)
(531,239)
(435,145)
Add/(subtract):
Tax effect of:
Other non-allowable items
Effect of tax losses derecognised
Derecognition of previously recognised tax losses
Recognition of previously unrecognised prior year tax losses
Tax benefit of deductible equity raising costs
Movement in unrecognised temporary differences
Income tax expense (benefit) attributable to entity
47,618
244,063
-
-
(2,250)
241,807
-
(b)
Recognised deferred tax assets at 25% (2022: 25%) comprise the following:
Carry forward revenue losses
Capital raising and future black hole deductions
Provisions and accruals
Other
Less: Set off of deferred tax liabilities
932,268
14,089
124,425
56,107
1,126,889
(1,126,889)
-
81,424
69
367,550
(231,738)
(2,250)
220,090
-
661,937
26,296
187,942
55,366
931,541
(931,541)
-
42
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
Recognised deferred tax assets at 25% (2022: 25%) comprise the
following:
Exploration expenditure
ROU assets
Less: Set off of deferred tax asset
(c)
Deferred tax recognised directly in equity:
Relating to equity raising costs
(d)
Unrecognised deferred tax assets at 25% (2022: 25%)
comprise the following:
Deferred tax assets have not been recognized in respect to the
following as they are not considered to have met the recognition
criteria:
Deductible temporary differences
Tax revenue losses
2023
$
2022
$
(1,125,743)
(1,146)
(1,126,889)
1,126,889
(931,541)
-
(931,541)
931,541
-
-
-
-
-
-
464,296
2,025,081
2,489,477
222,340
1,838,887
2,061,227
The corporate tax rates on both recognised and unrecognised deferred tax assets and deferred tax liabilities have
been calculated with respect to the tax rate that is expected to apply in the year the deferred tax asset is realised or
the liability is settled.
7.
CASH AND CASH EQUIVALENTS
Cash at bank
Petty cash
8.
TRADE AND OTHER RECEIVABLES
Current
Other receivables
3,818,231
200
3,818,431
6,901,109
200
6,901,309
23,844
23,844
63,978
63,978
Other receivables normally have 30-60 day terms. At 30 June 2023, $NIL (2022: $36,916) is receivable from companies
related to the Directors.
Non-Current
Bonds
Bonds are term deposits, held by way of bank guarantee.
9.
FINANCIAL ASSETS
Current
Financial assets, at fair value through profit or loss:
Australian listed shares at fair value
Unlisted Australian public company shares
49,679
49,679
49,679
49,679
2,868,117
-
2,868,117
3,882,311
-
3,882,311
43
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
10.
PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment
At cost
Accumulated depreciation
Office Furniture and Equipment
At cost
Accumulated depreciation
Motor Vehicle
At cost
Accumulated depreciation
2023
$
2022
$
351,386
(333,521)
17,865
43,638
(43,638)
-
65,878
(63,172)
2,706
20,571
366,356
(339,095)
27,261
43,638
(43,638)
-
65,878
(62,389)
3,489
30,750
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end
of the current financial year.
Balance at the beginning of the year
Additions
Disposals/write offs
Depreciation expense
Carrying amount at the end of the year
Balance at the beginning of the year
Additions
Disposals/write offs
Depreciation expense
Carrying amount at the end of the year
Plant and
Equipment
$
27,261
-
-
(9,396)
17,865
Plant and
Equipment
$
19,007
20,083
-
(11,829)
27,261
2023
Office
Furniture
$
-
-
-
-
-
2022
Office
Furniture
$
-
-
-
-
-
Motor
Vehicles
$
3,489
-
-
(783)
2,706
Motor
Vehicles
$
4,498
-
-
(1,009)
3,489
Total
$
30,750
-
-
(10,179)
20,571
Total
$
23,505
20,083
-
(12,838)
30,750
44
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
11.
EXPLORATION AND EVALUATION ASSETS
Non-Current
Costs carried forward in respect of areas of interest in:
2023
$
2022
$
Exploration and evaluation phases at cost
7,537,894
5,335,775
Movement – exploration and evaluation
Brought forward
Exploration expenditure capitalised during the year
Acquisitions
Exploration expenditure capitalised on tenements sold during the year
Capitalised expenditure on tenements sold
Exploration expenditure written off
5,335,775
2,367,655
471,428
-
-
(636,964)
5,294,691
1,372,390
375,750
6,861
(1,527,108)
(186,809)
7,537,894
5,335,775
Exploration expenditure, including tenement acquisitions, totalled $2,839,083 for the year (2022: $1,755,001). The main
expenditure was on its new Canadian projects, Ashburton, Halls Creek and new project generation. Exploration
expenditure written off for the year was $636,964 (2022: $186,809) and related to new project generation costs and
expenditures associated with various projects, tenements and applications that were relinquished or written off during
the financial year.
The value of the Group’s interest in exploration expenditure is dependent upon:
-
-
-
the continuance of the Group’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or
alternatively, by their sale.
12.
TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accrued expenses
Creditors are non-interest bearing and settled on 30-45 day terms.
13.
PROVISIONS
Current
Provision for annual leave
Provision for long service leave
114,442
69,475
183,917
27,116
174,535
201,651
35,918
69,782
105,700
62,229
61,521
123,750
45
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
14.
ISSUED CAPITAL
371,821,793 fully paid ordinary shares (2022: 370,821,793) with
no par value
26,872,021
26,674,021
2023
$
2022
$
Share Movements
30 June
2023
Number
30 June 2023 30 June 2022 30 June 2022
$
Number
$
Balance at the beginning of the year
370,821,793
26,674,021
369,563,267
26,620,021
Issue of shares at $0.043 each
Issue of shares at $0.039 each
Balance at the end of the year
Shares to be issued
(i)
(ii)
(iii)
-
-
1,258,526
54,000
1,000,000
30,000
-
-
371,821,793
26,704,021
370,821,793
26,674,021
4,115,663
168,000
-
-
375,937,456
26,872,021
370,821,793
26,674,021
(i)
(ii)
(iii)
Shares issued to Exiro Minerals Corp as part of the terms and conditions of an agreement (value CDN$50,000).
Shares issued in respect of a finders fee for the Abenab Project in Namibia.
Shares to be issued to Exiro Minerals Corp (value CDN$150,000) as part of a consulting and finder’s fee
agreement in relation to the Carb Lake Project (shares issued 24 July 2023).
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number
of shares held and in proportion to the amount paid up on the shares held. At shareholders meetings each ordinary
share is entitled to one vote in proportion to the paid-up amount of the share when a poll is called, otherwise each
shareholder has one vote on a show of hands.
Option Movements
Exercise Period
On or before 19/11/22
On or before 8/3/24
On or before 11/6/24
On or before 19/11/23
On or before 12/10/24
On or before 12/10/25
On or before 5/8/24 (ii)
On or before 25/11/25 (iii)
Exercise
Price
Number on
issue at 30
June 2022
Issued
during the
year
Exercised/
Expired/
Cancelled
Number on
issue at 30
June 2023
$0.0495
10,000,000
2,000,000
500,000
2,000,000
1,500,000
1,500,000
$0.05
$0.066
$0.067
$0.056
(i)
$0.06
$0.047
-
-
500,000
2,000,000
-
-
-
-
-
-
(10,000,000)
-
-
-
-
-
-
-
-
2,000,000
500,000
2,000,000
1,500,000
1,500,000
500,000
2,000,000
17,500,000
2,500,000
(10,000,000)
10,000,000
(iv)
(v)
(vi)
Exercisable at a price that is 150% of the VWAP for CAZ shares traded on the ASX over the 5 trading days
immediately preceding the vesting date (12 October 2023).
Issued as a finder’s fee for the Vanrock project.
Issued to a Non-Executive Director on 25 November 2022 (approved at Company’s AGM on 18 November 2022).
Equity Based Payments
Options are issued to directors, employees and consultants. The options may be subject to performance criteria to
increase goal congruence between executives, directors and shareholders. Options carry no dividend or voting rights.
The fair value of share options issued during the year was $29,270 (includes $24,460 relating to options issued to a
Non-Executive Director on 25 November 2022 (approved by shareholders at the AGM on 18 November 2022).
46
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
Allottee
Number of
Options
Fair Value
at Grant
Date per
Option
Consultant
500,000
$0.00962
Director
2,000,000
$0.02875
Capital risk management
Estimated
Volatility
70%
70%
Life of
Option
(years)
2.0
3.0
Exercise
Price
$0.060
$0.047
Share Price
at Grant
Date
$0.038
$0.033
Risk Free
Interest Rate
1.25%
1.25%
The Board controls the capital of the Group in order to provide the shareholders with adequate returns and ensure that
the Group can fund its operations and continue as a going concern. The Group’s capital includes ordinary share
capital. There are no externally imposed capital requirements. The working capital position of the Group at 30 June
2023 and 30 June 2022 are as follows:
Cash and cash equivalents
Trade and other receivables
Financial assets
Current liabilities
Working capital position
15.
OPTION RESERVE
Opening balance
Equity based payments (refer note 14)
Transfer to Accumulated Loses
Closing balance
2023
$
3,818,431
23,844
2,868,117
(296,669)
6,413,723
2022
$
6,901,309
63,979
3,882,311
(407,063)
10,440,536
729,858
29,270
(255,438)
503,690
422,241
307,617
-
729,858
This reserve records the value of equity benefits provided to employees, consultants and directors as part of their
remuneration, share based payments to third parties and option consideration for any acquisitions.
16.
ACCUMULATED LOSSES
Opening balance
Net earnings/(loss) attributable to members
Transfer from Option Reserve
Closing balance
17.
FINANCIAL RISK MANAGEMENT
(11,457,063)
(2,124,956)
255,438
(13,326,581)
(9,716,539)
(1,740,524)
-
(11,457,063)
The Group’s principal financial instruments comprise receivables, payables, held-for-trading investments, cash and
short-term deposits.
The Board of Directors has overall responsibility for the oversight and management of the Group’s exposure to a variety
of financial risks (including fair value interest rate risk, credit risk, liquidity risk and cash flow interest rate risk). The
Group’s risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group.
Interest rate risks
The Group’s exposure to market interest rates relates to cash deposits held at variable rates. The Board constantly
analyses its interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions.
Credit risk
The maximum exposure to credit risk at balance date is the carrying amount (net of provision of doubtful debts) of
those assets as disclosed in the Statement of Financial Position and notes to the financial statements. The
Consolidated group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure
47
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions
concluded is spread amongst approved counterparties.
Credit risk related to balances with banks and other financial institutions is managed by the board. The board’s policy
requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least A+. All of
the Group’s surplus funds are invested with AA and A+ Rated financial institutions, the amount is $3,818,431 (2022:
$6,901,309).
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors. The Consolidated group manages
liquidity risk by maintaining sufficient cash or credit facilities to meet the operating requirements of the business and
investing excess funds in highly liquid short term investments.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices
will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the
return.
Maturity profile of financial instruments
The following tables detail the Group’s exposure to interest rate risk as at 30 June 2023 and 30 June 2022:
30 June 2023
Floating
Interest
Rate
$
Fixed
Interest
maturing
in 1 year or
less
$
Financial assets
Cash and cash equivalents
568,231
3,250,000
Trade and other receivables
Financial assets – held for trading
-
-
49,679
-
568,231
3,299,679
Weighted average effective interest rate
3.57%
Non-
interest
bearing
2023
Total
$
$
200
23,844
2,868,117
2,892,161
3,818,431
73,523
2,868,117
6,760,071
Financial Liabilities
Trade and other payables
30 June 2022
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets – held for trading
-
-
-
-
183,817
183,917
183,917
183,817
Floating
Interest
Rate
$
1,901,109
-
-
1,901,109
Fixed
Interest
maturing
in 1 year or
less
$
5,000,000
49,679
-
5,049,679
Non-
interest
bearing
2022
Total
$
$
200
63,979
3,882,311
6,901,309
113,658
3,882,311
3,946,490
10,897,278
Weighted average effective interest rate
0.22%
Financial Liabilities
Trade and other payables
-
-
-
-
201,651
201,651
201,651
201,651
48
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
Net Fair Values
The carrying value and net fair values of financial assets and liabilities at balance date are:
Financial assets
Cash and deposits
Receivables
Investment held for trading
Financial liabilities
Payables
2023
2022
Carrying
Amount
$
3,818,431
73,523
2,868,117
6,760,071
183,917
183,917
Net fair
Value
$
3,818,431
73,523
2,868,117
6,760,071
183,917
183,917
Carrying
Amount
$
Net fair
Value
$
6,901,309
113,658
3,882,311
6,901,309
113,658
3,882,311
10,897,278
10,897,278
201,651
201,651
201,651
201,651
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.
All financial instruments measured at fair value are level one, meaning fair value is determined from quoted prices
in active markets for identical assets.
Sensitivity Analysis -Interest Rate Risk
The Company has performed sensitivity analysis relating to its exposure to interest rate risk at balance date. This
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change
in these risks.
Change in loss
•
Increase in interest rate by 100 basis points
• Decrease in interest rate by 100 basis points
Change in equity
•
Increase in interest rate by 100 basis points
• Decrease in interest rate by 100 basis points
18.
EARNINGS PER SHARE
a)
Reconciliation of earnings to profit or loss:
2023
$
37,921
(37,921)
37,921
(37,921)
2022
$
68,626
(68,626)
68,626
(68,626)
Earnings/(loss) for the year
Earnings/(loss) used to calculate basic and diluted EPS
(2,124,956)
(2,124,956)
(1,740,579)
(1,740,579)
b) Basic and diluted weighted average number of ordinary shares
outstanding during the year used in calculating dilutive EPS
2023
No. of Shares
2022
No. of Shares
371,821,793
370,821,793
49
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
19.
CASH FLOW INFORMATION
Reconciliation of cash flows from operating activities with
profit/(loss) after income tax
Profit/(Loss) after income tax
Non-operating cash flows in loss for the year:
Depreciation
Net (Gain)/ Loss on sale of shares
Finance costs on lease
Assets written off
Net profit on the sale of exploration assets
Employee & Consultant equity settled transactions
Fair value adjustment to investments
Exploration write-off
Changes in assets and liabilities:
Decrease/(increase) in trade receivables and prepayments
Increase/(decrease) in trade payables, accruals and employee
entitlements
(2,124,956)
(1,740,579)
80,044
63,562
(81,662)
-
-
29,270
574,414
636,964
82,703
(325,618)
7,746
3,425
(1,472,892)
307,617
2,068,396
186,809
47,247
62,088
1,437
-
Cash outflow from operations
(773,682)
(820,305)
20.
COMMITMENTS
In order to maintain rights of tenure to mining tenements, the Group would have the following discretionary exploration
expenditure requirements up until expiry of leases. These obligations, which are subject to renegotiation upon expiry
of the leases, are not provided for in the financial statements and are payable:
No longer than one year
Longer than one year, but not longer than five years
Longer than five years
974,256
3,003,691
10,924
3,988,871
605,969
4,185,568
32,772
4,824,309
If the Group decides to relinquish certain leases and/or does not meet these obligations, assets recognised in the
statement of financial position may require review to determine the appropriateness of carrying values. The sale,
transfer or farm-out of exploration rights to third parties will reduce or extinguish these obligations.
21.
CONTROLLED ENTITIES
Parent Entity
Cazaly Resources Limited
Controlled Entities
Cazaly Iron Pty Ltd
Sammy Resources Pty Ltd
Cazroy Pty Ltd
Baker Fe Pty Ltd
Baldock Fe Pty Ltd
Lockett Fe Pty Ltd
Hase Fe Pty Ltd
Vanrock Resources Pty Ltd
Discovery Minerals Pty Ltd
Kunene North Pty Ltd
Philco One Hundred & Seventy Three (Pty) Ltd
Incorporation Country
Percentage Owned
2023
2022
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Namibia
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
95%
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
95%
50
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
22.
OPERATING SEGMENTS
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board
of Directors in assessing performance and determining the allocation of resources. The Group is managed primarily
on the basis of its exploration and corporate activities. Operating segments are determined on the same basis.
Exploration
Segment assets, including acquisition cost of exploration licenses, all expenses related to the tenements and profit on
sale of tenements are reported on in this segment.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of
economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of
their nature and physical location. Unless indicated otherwise in the segment assets note, deferred tax assets and
intangible assets have not been allocated to operating segments.
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. Segment liabilities include trade and other payables.
Unallocated items
Non-recurring items of revenue or expenses are not allocated to operating segments as they are not considered part
of the core operations of any segment.
2023
Revenue
Interest received
Gain on sale of tenement
Other
Total segment revenue
Segment net operating profit (loss)
before tax
Depreciation
Impairment of exploration assets
Share based payments
Segment assets
Exploration expenditure
Property, plant & equipment
Segment liabilities
2022
Revenue
Interest received
Gain on sale of tenement
Other
Total segment revenue
Segment net operating profit (loss)
before tax
Depreciation
Impairment of exploration assets
Share based payments
Segment assets
Exploration expenditure
Property, plant and equipment
Segment liabilities
Exploration
$
Unallocated
$
Total
$
-
-
241,912
241,912
123,262
-
185,696
308,958
123,262
-
427,608
550,570
(395,051)
(1,729,905)
(2,124,956)
-
636,964
-
7,537,894
7,537,894
-
38,015
80,044
-
20,571
6,792,278
-
20,571
258,654
80,044
636,964
20,571
14,330,172
7,537,894
20,571
296,669
Exploration
$
Unallocated
$
Total
$
-
1,472,892
61,580
1,534,472
27,123
-
519,315
546,438
27,123
1,472,892
580,895
2,080,910
(125,228)
(1,615,351)
(1,740,579)
-
186,809
-
5,335,775
5,335,775
120,170
82,703
-
307,617
11,009,530
-
30,750
293,945
82,703
186,809
307,617
16,345,305
5,335,775
30,750
414,115
51
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
23.
PARENT ENTITY DISCLOSURES
(a) Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves:
Equity settled employee benefits
Retained profits
Total Equity
(b) Statement of Profit or Loss and Other Comprehensive
Income
Total profit/ (loss)
Total comprehensive income
Loans to Controlled Entities
2023
$
2022
$
3,817,233
8,041,001
6,961,519
6,722,039
11,858,234
13,683,559
296,642
-
407,037
7,052
296,642
414,089
26,872,025
26,674,025
759,128
729,858
(16,069,561)
(14,134,413)
11,561,592
13,269,470
(1,935,148)
(1,961,955)
(1,935,148)
(1,961,955)
Loans are provided by Cazaly (‘the Parent’) 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.
24.
EVENTS SUBSEQUENT TO REPORTING DATE
On 24 July 2023, the Company issued 4,115,663 fully paid ordinary shares to Exiro Minerals Corp as part of a consulting
and finder’s fee agreement in relation to Canadian projects.
As announced on 7 August 2023, after the completion of due diligence, the Company moved to a 25% holding in the
Sundown Lithium Project after paying C$350,000 and issuing 19,065,535 fully paid ordinary shares to 1Minerals Corp
(issued on 11 August 2023).
A review of the Company’s investment portfolio was performed on 18 September 2023. The fair value of investments at
this time was $3,621,432 whilst at year end the fair value was $2,868,117. The movement in market value of investments
is wholly attributable to share market fluctuations since the year end date.
Apart from the above, the Directors are not aware of any matters or circumstances at the date of the report, other than
those referred to in this report or the financial statements or notes thereto, that has significantly affected or may
significantly affect the operations, the results of operations or the state of affairs of the Group in subsequent financial
years.
52
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
25.
CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Liabilities
Kaoko Project
As announced on 26 March 2018, the Company acquired an option to earn the rights to a 95% interest in the Kaoko
Kobalt Project (‘Kaoko Project’) in Namibia. The following contingent liabilities remain for Cazaly’s registered 95%
interest at 30 June 2023:
Under the KDN JV:
KDN JV’s partner’s remaining 5% is free carried to a definitive feasibility study.
Under the Kunene Purchase Agreement:
The Company acquired 100% of the issued capital of Kunene North Pty Ltd and therefore its rights under the KDN JV,
and has the following commitments outstanding:
i)
Issue 10.5 million fully paid Cazaly shares upon the delineation of a JORC compliant mineral resource containing
at least 10,000t of contained cobalt (or other metal equivalent)
ii) Pay A$1 million (or issue fully paid Cazaly shares to that amount) upon a formal Decision to Mine
Halls Creek
As announced on 12 November 2020, the Company acquired an 80% interest in the Halls Creek project from 3D
Resources Limited bringing Cazaly to a 100% interest in the project. There is a contingent liability of $250,000 due to 3D
Resources Limited upon production of minerals in a commercial and saleable quantity and there is a royalty obligation
to Squadron Resources Pty Ltd on the tenement (M80/247). The royalty payable is a 1.5% net smelter return of
production attributable to the tenement.
Contingent Assets
Hamersley
The Hamersley Iron Ore Project was an unincorporated Joint Venture between Lockett Fe Pty Ltd (“Lockett”) (100%
owned subsidiary of the Company) and Pathfinder Resources Ltd (ASX:PF1). In August 2021 the project was sold to
Equinox Resources Limited (ASX:EQN) who subsequently listed on ASX on 13 October 2021. Lockett received 15 million
EQN shares and 2,850,000 performance share, plus retained a royalty interest on the project. The royalty is fixed and
payable to Lockett Fe Pty Ltd of USD$0.30 per metric tonne of iron ore which is extracted and sold or otherwise disposed
of from the area within the boundaries of the Hamersley Iron Ore Project. Each Performance Share will, at the election
of the holder, convert into one Equinox Share, subject to Equinox announcing to the ASX a positive preliminary Feasibility
Study in relation to the Hamersley Iron Ore Project, confirming the Hamersley Iron Ore Project is commercially viable.
The Performance Shares have a two-year term.
Parker Range
On 19 August 2019, the sale of Parker Range to Mineral Resources was completed and Cazaly received the $20 million
consideration. A royalty is also due at the rate of A$0.50 for every dry metric tonne of iron ore extracted and removed
from the Parker Range area after the first 10 million dry metric tonnes of production.
26.
SHARE BASED PAYMENTS
The following table illustrates the number and weighted average exercise prices of and movements in all vested
options on issue during the year (please also refer to Note 14 for further details on equity-based payments issued
during the year):
53
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2023
2023
2022
Number of
Weighted Ave
Number of
Weighted
Options
Exercise Price
Options
Ave Exercise
Balance at beginning of reporting period
14,500,000
Expired during the year
Vested during the year
Issued during the year
Balance at end of reporting period
Exercisable at end of reporting period
(10,000,000)
1,500,000
2,500,000
8,500,000
8,500,000
$
0.053
-
0.056
0.050
0.056
Price $
12,500,000
0.050
-
-
2,000,000
14,500,000
14,500,000
0.067
0.053
The options outstanding at 30 June 2023 had a weighted average remaining life of 0.22 years (2022 – 0.57 years).
The weighted average fair value of the options outstanding at 30 June 2023 was $0.020 (2022 - $0.023).
27.
RIGHT OF USE ASSETS AND LEASE LIABILITY
Right-of-use assets
Office lease
At carrying amount
Additions
Less: Accumulated amortisation
Leases
2023
$
81,502
-
(69,865)
11,637
2022
$
151,367
-
(69,865)
81,502
As of 30 June 2023, the net carrying amount of the office held under a lease arrangement is $7,052 (2022 - $88,714).
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and
the movements during the period:
As at 1 July 2022
Additions
Accretions of interest
Payments
As at 30 June 2023
Current
Non-current
The following are the amounts recognised in profit or loss:
Depreciation
Interest expense on lease liabilities
Total amount recognised in profit or loss
The Group had total cash outflows for leases of $84,771 in 2023 (2022: $81,463).
88,714
-
3,109
(84,771)
7,052
7,052
-
69,865
3,109
72,974
162,431
-
7,746
(81,463)
88,714
81,662
7,052
69,865
7,746
77,611
54
DIRECTORS’ DECLARATION
Cazaly Resources Limited Annual Report 2023
In accordance with a resolution of the directors of Cazaly Resources Limited, the directors of the Company declare
that:
1.
the financial statements and notes, as set out, are in accordance with the Corporations Act 2001 and:
a.
b.
comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the
financial statements, constitutes compliance with International Financial Reporting Standards
(IFRS); and
give a true and fair view of the financial position as at 30 June 2023 and of the performance for the
year ended on that date of the consolidated group;
2.
3.
in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable; and
the directors have been given the declarations required by s 295A of the Corporations Act 2001 from the Chief
Executive Officer and Chief Financial Officer.
On behalf of the Directors
Tara French
Managing Director
22 September 2023
55
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAZALY RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cazaly Resources Limited (“the Company”) and its subsidiaries (“the
Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2023,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with the Corporations
Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2023 and
of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance about whether the financial report is free from material misstatement. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Report section of our report. We are independent of the Consolidated Entity in accordance with
the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Evaluation and Evaluation Assets
Our procedures included, amongst others:
(Refer to Note 11)
• Exploration and evaluation is a key audit
matter due to:
• The significance of the balance to the
Consolidated Entity’s financial position.
• The
level of
judgement required
in
evaluating management’s application of
the requirements of AASB 6 Exploration
for and Evaluation of Mineral Resources.
AASB 6 is an industry specific accounting
standard requiring the application of
significant judgements, estimates and
industry
knowledge. This
includes
specific requirements for expenditure to
be capitalised as an asset and
subsequent requirements which must be
complied with for capitalised expenditure
to continue to be carried as an asset.
• Assessed management’s determination of its
areas of interest for consistency with the
definition in AASB 6. This involved analysing
the tenements in which the consolidated entity
holds an interest and the exploration programs
planned for those tenements.
• For each area of interest, we assessed the
tenure by
Consolidated Entity’s rights
corroborating to government registries and
to
evaluating agreements in place with other
parties as applicable;
• We
tested
to capitalised
expenditure for the year by evaluating a sample
the additions
of recorded expenditure for consistency to
capitalisation
underlying
records,
the
requirements of
the Consolidated Entity’s
accounting policy and the requirements of
AASB 6;
• We considered the activities in each area of
interest to date and assessed the planned
future activities for each area of interest by
evaluating budgets for each area of interest.
• We assessed each area of interest for one or
more of the following circumstances that may
capitalised
indicate
impairment of
the
expenditure:
o
the licenses for the right to explore
expiring in the near future or are not
expected to be renewed;
o substantive expenditure
for
further
exploration in the specific area is
neither budgeted or planned;
o decision or intent by the Consolidated
Entity to discontinue activities in the
specific area of interest due to lack of
commercially viable quantities of
resources; and
Key Audit Matter
How our audit addressed the Key Audit Matter
o data
indicating
that, although a
development in the specific area is
likely to proceed, the carrying amount
of the exploration asset is unlikely to be
recovered
in
full
from successful
development or sale.
• We assessed the appropriateness of the related
financial
in note 11
disclosures
the
to
statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability 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 Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Consolidated Entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain
solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 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.
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2023, complies with
section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated this 22nd day of September 2023
Perth, Western Australia
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2023
Additional information required by Australian Securities Exchange Limited and not shown elsewhere in this Annual
Report is as follows. The information is provided as at 15 September 2023.
DETAILS OF HOLDERS OF EQUITY SECURITIES
ORDINARY SHAREHOLDERS
There are 395,002,991 fully paid ordinary shares on issue, held by 2,283 shareholders. Each member entitled to vote
may vote in person or by proxy or by attorney and on a show of hands every person who is a member or a
representative or a proxy of a member shall have one vote and on a poll every member present in person or by proxy
or attorney or other authorised representative shall have one vote for each share held.
TWENTY LARGEST SHAREHOLDERS (AS AT 15 SEPTEMBER 2023)
Ordinary Shareholders
Kingsreef Pty Ltd (NB & DL Family A/c)
Mr Clive Bruce Jones (Alyse Investment A/C)
HSBC Custodyn Nominees (Aust) Ltd
ACN 139 886 025 Pty Ltd
Jetosea Pty Ltd
Citicorp Nominees Pty Ltd
Jaz Future Fund Pty Ltd (ARR Superannuation Fund)
Raymond Gardener & Hineaka Black (Tumeke S/Fund)
Mr Terry James Gardiner
Mr Derek Patrick Knox
Kingsreef Pty Ltd
Mr Anthony Robert Ramage
Mrs Alison Ovenden
Estate Mr Nathan Bruce McMahon
BNP Paribas Noms Pty Ltd (DRP A/c)
Tilpa Pty Ltd (Tilpa Pty Ltd Staff S/F A/C)
Mr C W Chalwell & Mr I W Wilson (Chalwell Pension Fund A/c)
Mr Thomas Francis Corr
Brevmar Pty Ltd (Glen Invest S/Fund)
Maincoast Pty Ltd
Fully Paid Ordinary
Number
31,529,841
21,253,469
20,078,654
16,117,640
15,746,901
14,557,125
8,000,000
7,000,000
6,517,893
6,405,308
5,343,550
5,200,000
5,000,000
4,823,756
4,466,100
4,116,860
4,000,000
4,000,000
3,500,000
3,473,849
%
7.98
5.38
5.08
4.08
3.99
3.69
2.03
1.77
1.65
1.62
1.35
1.32
1.27
1.22
1.13
1.04
1.01
1.01
0.89
0.88
191,130,946
48.39%
VOTING RIGHTS
Subject to any rights or restrictions for the time being attached to any class or classes (at present there are none) at
general meetings of shareholders or classes of shareholders:
(a) each shareholder entitled to vote, may vote in person or by proxy, attorney or representative;
(b) on a show of hands, every person present who is a shareholder or a proxy, attorney or representative of a
shareholder has one vote; and
(c) on a poll, every person present who is a shareholder or a proxy, attorney or representative of a shareholder shall,
in respect of each fully paid share held, or in respect of which he/she has appointed a proxy, attorney or
representative, have one vote for the share, but in respect of partly paid shares shall have a fraction of a vote
equivalent to the proportion which the amount paid up bears to the total issue price for the share.
HOLDERS OF NON-MARKETABLE PARCELS
There are 1,174 shareholders who hold less than a marketable parcel of shares.
61
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2023
DISTRIBUTION OF SHARE HOLDERS (AS AT 15 SEPTEMBER 2023)
1 to
1,001 to
5,001 to
10,001 to
100,001 and over
1,000
5,000
10,000
100,000
SUBSTANTIAL SHAREHOLDERS
Ordinary Shares
125,827
1,553,475
2,250,044
31,792,749
359,280,896
395,002,991
As at report date, the following shareholders are recorded as Substantial Shareholders pursuant to their last notices
lodged in accordance with section 671B of the Corporations Act:
Substantial Shareholder
Ordinary Shares held
% Held
Nathan McMahon & associated entities
Clive Jones & associated entities
37,363,256
18,329,904
10.61%
5.30%
The shares and percentages held, as set out above, are based on the total issued share capital at the date of
notification to the Company of the relevant substantial shareholder interest.
SHARE BUY-BACKS
There is no current on-market buy-back scheme.
OTHER INFORMATION
Cazaly Resources Limited, incorporated and domiciled in Australia, is listed on the Australian Securities Exchange
(ASX code: CAZ).
62
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2023
INTEREST IN MINING TENEMENTS AS AT 15 SEPTEMBER 2023
AUSTRALIA
Managed by the Company:
Tenement
M80/0247
E80/5307
E 08/3260
E 08/3261
E 08/3262
E 08/3265
E 08/3272
E 28/3275 *
E 45/6385 *
E 52/4120 *
E 52/4233 *
E 52/4234
E 52/4212
E52/4040
E09/2671
E09/2941 *
E38/3904 *
E47/4979 *
E38/3864 *
E38/3865 *
*applications
Project Name
Mt Angelo
Halls Creek
Ashburton
Ashburton
Ashburton
Ashburton
Ashburton
Kurnalpi
Marble Bar
Lyons-Bangemall
Lyons-Bangemall
Lyons-Bangemall
Lyons
Lyons
Lyons
Lyons
Virginia Range
West Pilbara
Mt Venn
Mt Venn
Joint Venture Tenements not Managed by the Company:
Tenement
Project Name
McKenzie Springs
Mt Venn
Mt Venn
Mt Venn
Errabiddy
Yilgangi
Yilgangi
Yilgangi
E80/4808
E38/3111
E38/3150
E38/3581
E09/2346
E31/1019
E31/1020
M31/0427
NAMIBIA
Tenement
EPL 6667
EPL 9110 *
*application
CANADA
Entity
Cazaly
Cazaly
Cazaly
Cazaly
Cazaly
Cazaly
Cazaly
Sammy
Sammy
Sammy
Sammy
Sammy
Sammy
Sammy
Sammy
Sammy
Cazaly
Sammy
Sammy
Sammy
Entity
Sammy
Cazaly
Cazaly
Cazaly
Sammy
Cazaly
Cazaly
Cazaly
% Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
50
50
100
100
100
100
100
% Interest
30
20
20
20
20
10
10
10
Project Name
Kaoko
Abenab North
Entity
% Interest
Kunene North
Kunene North
95
95
Claim Nos.
Project Name
Entity
% Interest
688637
688626
688571-688624
688532-688568
Carb Lake
Carb Lake
Carb Lake
Carb Lake
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
100
100
100
100
63
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2023
Project Name
Entity
% Interest
Claim Nos.
CDC2692045
Sundown
CDC2692770 - CDC2692787
Sundown
CDC2692815 - CDC2692823
Sundown
CDC2692844 - CDC2692848
Sundown
CDC2692852 - CDC2692856
Sundown
CDC2692859 - CDC2692877
Sundown
CDC2692879 - CDC2692895
Sundown
CDC2694070 - CDC2694105
Sundown
CDC2694124 - CDC2694125
CDC2694127 - CDC2694159
Sundown
Sundown
CDC2694805 - CDC2694810
Sundown
CDC2702917 - CDC2706250
CDC2706265 - CDC2706281
Sundown
Sundown
CDC2706322 - CDC2706338
Sundown
CDC2706489 - CDC2706503
Sundown
CDC2712582 - CDC2712583
CDC2712591 - CDC2712594
CDC2714462 - CDC2714465
CDC2715879 - CDC2715880
CDC2719108 - CDC2719124
CDC2723400 - CDC2723414
Sundown
Sundown
Sundown
Sundown
Sundown
Sundown
CDC2728079 - CDC2728094
Sundown
CDC2745317
Sundown
CDC2745988 - CDC2746004
Sundown
CDC2755227 - CDC2755282
CDC2755296 - CDC2755311
Sundown
Sundown
CDC2755573 - CDC2755584
Sundown
CDC2756049 - CDC2756082
Sundown
CDC2757063 - CDC2757095
Sundown
CDC2757211 - CDC2757221
CDC2757594
CDC2757683
Sundown
Sundown
Sundown
CDC2758850 - CDC2758982
Sundown
CDC2759016 - CDC2759021
Sundown
CDC2760330 - CDC2760335
Sundown
CDC2706279 (a)
CDC2706328 (a)
CDC2706497 (a)
CDC2706498 (a)
CDC2712593 (a)
CDC2692860 (b)
CDC2692873 (b)
CDC2694129 (b)
Sundown
Sundown
Sundown
Sundown
Sundown
Sundown
Sundown
Sundown
502 Mining Claims are held 75% by 1Minerals Corp
5 Mining Claims are held 75% by 1254704 B.C. LTD (a)
3 Mining Claims are held 75% by 1Life Holdings Ltd (b)
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
Mulga Minerals
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
64