`
ABN 23 101 049 334
And Controlled Entities
Annual Report
For the Year Ended
30 June 2024
CONTENTS
Cazaly Resources Limited Annual Report 2024
Corporate Directory
1
Directors’ Report
2
Auditor’s Independence Declaration
21
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
22
Consolidated Statement of Financial Position
23
Consolidated Statement of Changes in Equity
24
Consolidated Cash Flow Statement
25
Notes to the Financial Statements
26
Directors’ Declaration
50
Independent Auditor’s Report
51
Additional Shareholder Information
57
CORPORATE DIRECTORY
Cazaly Resources Limited Annual Report 2024
1
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
Automic
Level 5, 126 Phillip St
SYDNEY NSW 2000
Telephone: 1300 288 664
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: CAZ
BANKERS
National Australia Bank
100 St Georges Terrace
PERTH WA 6000
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
2
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 2024.
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 – CEO and 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:
Meetings
No.
Eligible
No.
Attended
Mr Jones
6
6
Ms French
6
6
Mr Gardiner
6
6
Mr Downes
6
6
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 $892,253 (2023: $2,124,956). The Group’s net assets at the end of the year
are $16,133,187, (2023: $14,033,504).
Cash and cash equivalents as at year end were $5,033,336, (2023: $3,818,431).
Exploration expenditure, including tenement acquisitions, totalled $2,836,512 for the year (2023: $2,839,082). The
main expenditure was on its new Canadian projects, the continued good standing of Ashburton and Halls Creek
tenements and new project generation. Exploration expenditure written off for the year was $178,431 (2023:
$636,964) 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 $1,005,929 (2023: $979,688).
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
3
During this next financial year, the Group intends to continue to further develop its current core projects whilst also
exploring key commodity opportunities both in Australia and overseas.
4.
MATERIAL BUSINESS RISKS
There are inherent risks associated with mineral exploration and development activities that specifically relate to
the Company’s operations. Due to the speculative nature of mineral exploration activities, there is no certainty that
the Company’s activities will result in a new economic mineral discovery. Even if economic mineralisation is
discovered there is no guarantee that it can be commercially exploited. The following highlights key risks to the
business and is not intended to be an exhaustive list of risk factors to which the Company may be exposed.
Security of Tenure
The company operates in Australia, Namibia and Canada. In all jurisdictions the Company’s activities are
conducted on granted tenements or licences governed by the relevant state legislation. Each licence is granted
for a specified term and has specific compliance conditions including but not limited to annual expenditure,
payments of rents and rates, and reporting commitments.
Exploration licences are subject to periodic renewal. Any licence renewal, while not guaranteed, may come with
increased costs. While the Company endeavours to meet its commitments for exploration licences, there is no
guarantee that the Company will satisfy the expenditure commitments. If the term of any licence is not renewed
or extended, the Company may suffer damage through loss of the opportunity to discover and/or develop any
mineral resources on these tenements.
Interests in tenure may also be compromised or lost due to changes in government policy, third party interests or
claims.
Land Access
Land access is critical for exploration and/or exploitation to succeed. Under various government legislation, the
Company will generally be required to obtain the consent of and/or pay compensation to landowners/occupiers,
the holders of pastoral leases, petroleum tenure and other tenure which overlay areas within Company tenements
in respect of any proposed exploration or mining activities on the tenements. The Company may also be required
to obtain the consent of the relevant Minister in relation to activities on certain areas of the tenements.
Negotiating land access agreements has the potential to delay, curtail and preclude the Company's operations.
Aboriginal Heritage, Native Title, and First Nation Groups
Mining tenements are generally 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.
First Nations continuous right to self-determination and respect for, and access to, traditions is key to
the preservation of indigenous culture.
The Company’s Canadian projects may now or in the future be the subject of First Nation land claims. The legal
nature of First Nation land claims is a matter of considerable complexity. The impact of any such claim on the
Company’s material interest in the projects and/or potential ownership interest in the projects in the future, cannot
be predicted with any degree of certainty and no assurance can be given that a broad recognition of First Nation
rights in the areas in which the projects are located, by way of negotiated settlements or judicial pronouncements,
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
4
would not have an adverse effect on the Company’s activities. Even in the absence of such recognition, the
Company may at some point be required to negotiate with and seek the approval of holders of First Nation interests
in order to facilitate exploration and development work on the Company’s mineral properties, and there is no
assurance that the Company will be able to establish practical working relationships with the First Nation
communities in the area which would allow it to ultimately develop the Company’s mineral properties.
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. 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.
Reliance on key personnel
The Company is reliant on a number of key personnel and consultants, including members of the Board and its
experienced management team. The loss of one or more of these key contributors could have an adverse impact
on the business of the Company. There is no guarantee that the Company can continue to attract and retain high
quality, suitably qualified and experienced people.
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.
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.
Sovereign / Political risk
Cazaly currently operate in Namibia, Australia, and Canada. There is sovereign risk associated with operating in
any country, including Australia. These risks may include economic, social or political instability or change,
hyperinflation, currency non-convertibility or instability and changes of law affecting foreign ownership,
government participation, taxation, working conditions, rates of exchange, exchange control, exploration licensing,
export duties, repatriation of income or return of capital, environmental protection, labour relations as well as
government control over land access and natural resources.
Any future material adverse changes in government policies or legislation in which the Company has projects that
affect ownership, exploration, development or activities of companies involved in exploration and production, may
affect the viability and profitability of the Company.
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.
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).
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
5
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.
Resource and Reserve estimates
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.
Environmental liabilities
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.
Environmental regulation risk
The Company's projects are subject to provincial, state and federal laws and regulations regarding environmental
matters. The governments and other authorities that administer and enforce environmental laws and regulations
determine these requirements. As with all exploration projects and mining operations, the Company’s activities are
expected to have an impact on the environment, particularly if they result in mine development.
While the Company complies with all environmental laws and regulations, the cost and complexity of complying
with the applicable environmental laws and regulations may prevent the Company from being able to develop
mineral deposits. There are also risks that the Company may inadvertently breach environmental laws and
regulations, with consequential adverse effects on the financial position and performance of the Company.
Further, the Company may require approvals from relevant authorities before it can undertake activities that are
likely to impact the environment. There is no guarantee that approvals will be granted, thus preventing the
Company from undertaking its desired activities.
Climate change
The Company acknowledges the emergence of new or expanded regulations associated with the transitioning to
a lower-carbon economy and market changes related to climate change mitigation. The Company may be
impacted by changes to local or international compliance regulations related to climate change mitigation efforts,
or by specific taxation or penalties for carbon emissions or environmental damage. These examples sit amongst
an array of possible restraints on industry that may further impact the Company and its profitability. While the
Company will endeavour to manage these risks and limit any consequential impacts, there can be no guarantee
that the Company will not be impacted by these occurrences.
Climate change may cause certain physical and environmental risks that cannot be predicted by the Company,
including events such as increased severity of weather patterns and incidence of extreme weather events and
longer-term physical risks such as shifting climate patterns. All these risks associated with climate change may
significantly change the industry in which the Company operates.
Commodity price volatility
The Company is currently exposed to the risks of commodity price volatility which affects the Company's
expenditure.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
6
5.
REVIEW OF OPERATIONS
PROJECTS
Safety, Health, Environment & Community Relations
The Company has sound management systems in place for all its safety, health, environmental and community
relation work practices.
During the 2024 financial year, there were no lost time injuries (LTI’s) and no reportable incidents relating to safety,
health, environment or community-related matters.
Cazaly is currently developing and evolving its Environmental, Social and Governance (ESG) framework to enable
it to report against the 21-core metrics and disclosures as promoted by the World Economic Forum. The Company
has and continues to consult with all its stakeholders when addressing the planned systems and actions required
for the four key ESG pillars – Governance, Planet, People and Prosperity.
The Board recently adopted the Cazaly Modern Slavery Values.
CANADA
Carb - Niobium & Rare Earth Elements Project (CAZ 100%)
The Carb project comprises a large, +3km
diameter carbonatite complex prospective for
Niobium and Rare Earth Elements, located in
north-western Ontario (Figure 1). The Project is
located between two major tectonic terrane
boundaries along the North Kenyon Fault, a
significant
crustal scale
fault,
an
ideal
structure for mantle derived magma to
intrude through to the upper crust.
The
mid-Proterozoic
aged
carbonatite
emplaced within tonalites of the Northern
Superior Superterrane that represents the
northernmost exposure of Archaean Rocks in
Ontario. The carbonatite is not exposed at
surface with shallow cover from 7 to 12m.
Very little historical exploration has been
completed on the project. Four diamond holes
(DD001-DD004, Figure 2) were drilled at Carb
in 1967 for a total of 564m. The drill core
provided data for geochemical studies which
Figure 1. Location of the Carb Niobium and REE project, Ontario, Canada.
was completed by the Ontario Department of
Mines, Geological Survey in the late 1960s and early 1970s. Much of the diamond core was consumed for these
studies however some core remains and is stored by the department. The best results reported were from DD004,
drilled into the centre of the carbonatite complex in an area of low magnetic intensity (Figure 2), with two samples
reporting >5% Ce and >1% La. One sample reported a value of 7.1% Nb.
On 1 July 2024, the Company announced that it had received government approval which included a consultative
process with the First Nation local community, for a proposed drill program to test Nb and REE mineralisation at the
large-scale Carb carbonatite complex. Drilling was due to commence in early August 2024, but as announced on
7 August 2024, the drilling programme was delayed due to a new communication from the local First Nation
community. Unfortunately, this communication was not received until after the geological crew and drill rig
mobilised to commence the planned work. In response, the Company has suspended the programme. The
company commenced communications with the First Nation local community when the project was acquired in
August 2023 and will continue this process to move the project forward.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
7
For further technical disclosures, relative cautionary statements and references please refer to Cazaly
announcements dated 27 April 2023, 3 May 2023, 14 June 2023, 31 July 2023, 22 August 2023, 22 September 2023, 10
November 2023, 19 January 2024, 25 March 2024 and 1 July 2024.
Cautionary Statement
The historical exploration results have been reported in ASX announcements listed above and sourced from public
reports and are not reported in accordance with the JORC Code. The historical information is an accurate
representation of the available data for the project that has been sourced to date.
The pXRF exploration results reported have been collected on historical drill 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.
Sundown Lithium Project (CAZ 25%)
The Sundown project represents a strategically significant tenement holding (Figure 3) covering 260km2 positioned
between Allkem Ltd’s (ASX: AKE) James Bay deposit and Patriot Battery Metals (ASX: PMT) Corvette deposit. Past
surface rock chip sample results confirmed the prospectivity of the Gladman intrusive suite, that occupies a
significant portion of the Sundown project area, as a primary exploration target for LCT pegmatites.
On 7 August 2023, the Company announced that it completed its due diligence and would proceeds with the
acquisition of the Sundown lithium project. Cazaly moved to a 25% holding in the project after making a payment
of C$350,000 and issuing 19,065,535 shares on 11 August 2023.
With such a large landholding, a significant amount of methodical exploration work is required in order to
adequately test the 260km2 project area. Future helicopter supported exploration programs including mapping
and rock chip or channel sampling would be needed to form part of the initial greenfields exploration strategy.
Upon further review the Company decided not to proceed with the Property Option Agreement on the project. The
Company retains its 25% interest in the property whilst allowing the Company to focus its efforts on other projects
and preserving its cash resources.
Figure 2. Aeromagnetic image of the Carb carbonatite complex, and
location of historical drill holes.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
8
For further technical disclosures, relative cautionary statements and references please refer to Cazaly
announcements dated 31 May 2023, 1 June 2023, 7 August 2023, 15 August 2023, 4 September 2023, 10 November
2023 and 19 January 2024.
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 4). The project includes the
Mount Angelo North volcanogenic massive sulphide (VMS) copper-zinc-silver deposit and the Bommie porphyry
copper deposit.
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. The AuKing scoping study confirmed
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 Cazaly
announcement dated 1 June 2023.
Figure 3. Location of the Sundown Lithium Project and significant lithium resources in the
James Bay District.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
9
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.
Table 1. Mount Angelo North Cu-Zn-Ag Deposit, Mineral Resource Estimate (0.4% Cu cut-off), January 2022
Indicated
Inferred
Total
Type
TONNES
Metric
Cu
%
Ag
ppm
Zn
%
TONNES
Metric
Cu
%
Ag
ppm
Zn
%
TONNES
Metric
Cu
%
Ag
ppm
Zn
%
Oxide
149,000
1.4
21
0.9
67,500
0.9
9
0.9
216,000
1.2
17
0.9
Transitional
158,000
1.7
16
1.5
157,000
1.2
7
0.6
316,000
1.4
12
1.1
Fresh
699,000
1.7
13
1.8
487,000
1.0
10
1.4
1,187,000
1.4
12
1.6
Total
1,007,000
1.6
15
1.6
712,000
1.0
9
1.2
1,719,000
1.4
12
1.4
For further technical information please refer to the Cazaly ASX Quarterly Activities Report for December 2021 (dated
31 January 2022).
Figure 4. Halls Creek Project. Mt Angelo North and Bommie copper resources relative to AuKing's project
area.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
10
Table 2. 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
3,091,000
0.30
39,000
71,380,000
0.27
190,000
84,471,000
0.27
230,000
Total
6,102,000
0.30
48,000
79,466,000
0.27
212,000
95,568,000
0.27
262,000
Refer to the Cazaly ASX announcement dated 24 November 2022 for details of drilling results, and the resource
estimation parameters.
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. 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.
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 the discovery of large mineralised
systems along the major regional scale structures, which to date have seen very little modern exploration.
Cazaly’s exploration activities have identified 4 regional scale mineralised trends up to 70km long (Figure 5) that
coincide with several mantle tapping structures required for the transportation of significant volumes of
mineralised fluids suitable for the development of large-scale mineralised systems. In addition to regional scale
targeting, several prospect scale targets, up to 10km long, have been identified across the project area.
Figure 5. Location of the Ashburton Project relative to +1M oz gold deposits in the district.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
11
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 four tenements, that together form the Lyons Project a very prospective package
of ground in the Bangemall Basin (Figure 6). Two of the tenements along the Lyons River Fault (E09/2671 and
E52/4040) were acquired to consolidate the Lyons Project via an exclusive binding option agreement with
Murchison REE Pty Ltd to acquire up to 100% of the project.
As announced on 28 December 2023, the Company conducted reconnaissance surface sampling during late
November 2023. 212 stream sediment samples were collected across three target areas (A1-A3) to test the
potential for REE and base metal mineralisation. All samples were sieved to -75µm and assayed at Intertek
laboratories using a high resolution aqua regia method.
Follow up surface sampling completed during the June ’24 quarter downgraded the geochemical targets identified
at Lyons. The Company considers the prospectivity of the project is no longer sufficient to warrant further work, and
as such surrendered E52/4212 subsequent to the end of the June ’24 quarter. The option agreement for E09/2671
and E52/4040 was not exercised, and no financial contributions were made to Murchison REE Pty Ltd following the
initial exclusivity payment (refer ASX Announcement 2 August 2023).
For further technical disclosures and references please refer to CAZ announcements dated 2 August 2023, 5
December 2023 and 28 December 2023.
Figure 6. Lyons REE and base metal project location within the Gascoyne Province.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
12
NAMIBIA
Abenab North Rare Earth Elements &
Base Metals Project (CAZ 95%)
The application approval for a new exploration
licence for Abenab North is pending. The project
is located in the northern region of Namibia
(Figure 7) 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.
The
project
is
considered to be highly prospective for base
metals and REE mineralisation as evidenced
from the results of previous 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.
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 7). 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.
An application for a two-year licence extension was granted and is valid until 8 June 2025.
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 been followed up
with infill surface sampling to better define and confirm the target.
As announced on the 9 September 2024, the Company commenced a first phase 1,600m drilling campaign to test
the lithium targets. For further technical details please refer to Cazaly ASX announcements dated 24 March 2023
and 9 September 2024.
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.
Figure 7. Location of Namibian Critical Mineral Projects.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
13
The Mt Venn 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 pre-feasibility stage.
McKenzie Springs (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).
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. Management level discussions have continued with MIN since their June
2024 announcement in respect of their plans to discontinue iron ore shipments from the Yilgarn Hub by 31
December 2024.
Following the sale of the Hamersley Iron Ore Project in 2021, to Equinox Resources Limited (ASX: EQN), the Company
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 totalling $5.62 million at 30 June 2024.
Share Issues
On 24 July 2023, the Company issued 4,115,663 fully paid ordinary shares to Exiro Minerals Corp (value C$150,000)
as per the terms and conditions of a consulting and finder’s fee agreement for its Canadian projects.
On 11 August 2023, the Company issued 19,065,535 fully paid ordinary shares to 1Minerals Corp as per the terms and
conditions of an agreement for a 25% interest in the Sundown project in Quebec.
On 6 and 7 December 2023, the Company issued a total of 59,633,333 fully paid shares as per the terms and
conditions of a placement announced on 27 November 2023.
After shareholder approval was obtained on 23 May 2024, a further 6,666,667 shares were issued to a director under
the same terms and conditions of the placement on 27 November 2023. Total gross proceeds from the placement
were $1,989,000.
Option Issues
On 14 December 2023, the Company issued 5,000,000 unquoted options (exercisable at $0.045 on or before 13
December 2026) to Barclay Wells as part of the Lead Manager’s fee as per the terms and conditions of the
placement announced on 27 November 2023.
6.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Group continues to assess other potential project opportunities that will add value to its portfolio, in addition
to continuing its mineral exploration activity on and around its exploration projects with the aim of identifying
commercial mineral resources.
7.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
14
8.
AFTER BALANCE DATE EVENTS
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
27,993,707 fully paid ordinary shares
Listed Directorships
Current
Bannerman Energy Ltd
Tara French
Managing Director
Experience
Ms French is a geologist with over 25 years mining and exploration experience,
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. 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.
Equity Holdings
3,423,959 fully paid ordinary shares
5,000,000 performance rights
1,500,000 options exercisable at $0.056 expiring 12 October 2024
1,500,000 options exercisable at $0.056 expiring 12 October 2025
Listed Directorships
Current
Lefroy Exploration Ltd
Terry Gardiner
Independent Non-Executive Director
Experience
Mr Gardiner has been involved in capital markets, corporate advising, stockbroking &
derivatives trading for over 25 years. For the past eighteen years Mr Gardiner has been
an Executive Director of boutique broker Barclay Wells Ltd. He also holds other Non-
Executive Director roles with various ASX listed and unlisted public companies.
Equity Holdings
17,866,667 fully paid ordinary shares
Listed Directorships
Current
Galan Lithium Limited
Roto-Gro International Limited
Charger Metals NL
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
15
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. Mr Downes is currently
the Managing Director of Kaiser Reef Limited and is a director of Brightstar Resources
Limited and Nickel X Limited.
Equity Holdings
400,100 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.
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 option
incentives are valued using the Black-Scholes methodology.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
16
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
(last approved in 2022). 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 $5,167 per month and an annual salary
component of $62,000 (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 $52,000 (plus statutory superannuation)(from 1 July 2023).
Ms Tara French is the Company’s Managing Director and is on an annual salary of $290,000 (plus statutory
superannuation)(from 1 July 2023). 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.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
17
Details of Remuneration for Years Ended 30 June 2024 & 30 June 2023
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,
salary &
bonuses
Cash
profit
share
Non-cash
Benefit
Other
Super
Other
Equity
Options
& Rights
$
$
$
$
$
$
$
$
$
%
Tara French – Managing Director
2024
290,000
31,900
321,900
-
2023
280,000
-
-
-
29,400
-
-
-
309,400
-
Clive Jones – Chairman and Executive Director (i)
2024
124,000
-
-
-
6,820
-
-
-
130,820
2023
150,000
-
-
-
6,300
-
-
-
156,300
-
Terry Gardiner – Non-Executive Director
2024
52,000
-
-
-
5,720
-
-
-
57,720
-
2023
50,000
-
-
-
5,250
-
-
-
55,250
-
Jonathan Downes – Non-Executive Director (ii)
2024
52,000
-
-
-
5,720
-
-
-
57,720
-
2023
50,000
-
-
-
5,250
-
-
24,460
79,710
30.1%
Total Remuneration
2024
518,000
-
-
-
50,160
-
-
-
568,160
-
2023
530,000
-
-
-
46,200
-
-
24,460
600,660
4.1%
i)
Aggregate short-term benefits of $124,000 (2023: $150,000) 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 $62,000.
ii) Share-based payments options were included in Mr Downes’ employment conditions and were fully expensed in FY
2023. The issue of 2 million unquoted options was approved by shareholders on 18 November 2022.
Voting and comments made at the Company’s 2023 Annual General Meeting
The adoption of the Remuneration Report for the financial year ended 30 June 2023 was put to the shareholders of
the Company at the Annual General Meeting held 21 November 2023. The Company received 99.8% of the poll vote,
of those shareholders who exercised their right to vote, in favour of the remuneration report for the 2023 financial
year. The resolution was passed without amendment by the 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 $Nil (2023: $69,883) 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 (2023: $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.
The Company paid $119,335 (2023: $Nil) and issued 5 million unlisted options (exercisable at $0.045 on or before 13
December 2026) for the provision of Lead Manager services to Barclay Wells Ltd. Barclay Wells is considered to be
a related Party, as a Barclay Wells executive director, Mr Terry Gardiner, is also a director of Cazaly Resources Ltd.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
18
Key Management Personnel (KMP) Equity Holdings
SHARES
30 June 2024
Balance
01-07-23
Granted as
Remuneration
Options
Exercised
Net Change
Other
Balance
30-06-24
C. Jones
23,898,469
-
-
4,095,238
27,993,707
T. French
1,000,000
-
-
2,423,959
3,423,959
T. Gardiner
9,717,893
-
-
8,148,774
17,866,667
J. Downes
300,100
-
-
100,000
400,100
34,916,462
-
-
14,767,971
49,684,433
30 June 2023
Balance
01-07-22
Granted as
Remuneration
Options
Exercised
Net Change
Other
Balance
30-06-23
C. Jones
22,829,904
-
-
1,068,565
23,898,469
T. French
1,000,000
-
-
-
1,000,000
T. Gardiner
9,467,893
-
-
250,000
9,717,893
J. Downes
200,100
-
-
100,000
300,100
33,497,897
-
-
1,418,565
34,916,462
OPTIONS
30 June 2024
Balance
01-07-23
Issued
Acquired
Exercised
Lapsed/
Other
Balance
30-06-24
Vested
during the
year
Vested
and
exercisable
C. Jones
-
-
-
-
-
-
-
T. French (i)
3,500,000
1,500,000
-
(2,000,000)
3,000,000
1,500,000
3,000,000
T. Gardiner
-
-
-
-
-
-
-
J. Downes (ii)
2,000,000
-
-
-
2,000,000
-
2,000,000
5,500,000
1,500,000
-
(2,000,000)
5,000,000
1,500,000
5,000,000
30 June 2023
Balance
01-07-22
Issued
Acquired
Exercised
Lapsed/
Other
Balance
30-06-23
Vested
during the
year
Vested
and
exercisable
C. Jones
4,000,000
-
-
(4,000,000)
-
-
-
T. French (i)
5,000,000
-
-
-
5,000,000
1,500,000
3,500,000
T. Gardiner
2,000,000
-
-
(2,000,000)
-
-
-
J. Downes (ii)
-
2,000,000
-
-
2,000,000
2,000,000
2,000,000
11,000,000
2,000,000
-
(6,000,000)
7,000,000
3,500,000
5,500,000
(i)
Ms French was issued with a total of 5 million options as approved by shareholders on 19 November 2021. 2,000,000
options were exercisable at $0.067 on or before 19 November 2023 (expired), 1,500,000 options are exercisable at
$0.056 on or before 12 October 2024 and 1,500,000 options are exercisable at $0.056 on or before 12 October 2025
(ii)
Mr Downes was issued with 2 million options as approved by shareholders on 18 November 2022. Options are
exercisable at $0.047 on or before 25 November 2025.
As approved by shareholders on 19 November 2021, 5 million Performance Rights were awarded to Ms French and
will expire on 11 October 2025.
End of Remuneration Report (Audited).
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
19
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
Unquoted options forfeited or cancelled
During, or since the end of the financial year, no options were forfeited or cancelled.
Unquoted options expired or lapsed
On 19 November 2023, 2 million options (exercisable at $0.067) expired.
On 11 June 2024, 500,000 options (exercisable at $0.066) expired.
Options on issue
At the date of this report the Company had the following options on issue:
Expiry Date
Exercise Price
Options on Issue
12/10/24
$0.056
1,500,000
12/10/25
$0.056
1,500,000
5/8/24
$0.06
500,000
25/11/25
$0.047
2,000,000
13/12/26 (i)
$0.045
5,000,000
(i)
Issued to Barclay Wells as part of the Lead Manager’s fee for the placement announced 27 November
2023.
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 2024 has been received and can be found
on page 21.
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 2024.
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2024
20
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
20 September 2024
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.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcements and that all material assumptions and technical parameters
have not materially changed. The Company confirms that the form and context in which the Competent Person’s
findings are presented have also not materially changed from the original market announcements. Copies of all
referenced announcements are available to view at https://www.cazalyresources.com.au
Forward Looking Statement
This half year report may include forward-looking statements. Forward-looking statements include, but are not
limited to, statements concerning Cazaly Resources Ltd’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 half year report reflect views held
only as at the date of this half year report.
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 2024, 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 20th day of September 2024
Perth, Western Australia
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For Year Ended 30 June 2024
22
Note
2024
2023
$
$
Revenue from continuing operations
2
297,466
308,958
Gain/(Loss) on sale of financials assets
675,625
(63,562)
Other Income
2
53,335
241,912
Employee benefits
(547,035)
(544,194)
Finance Costs
(14,991)
(3,109)
Depreciation
(100,503)
(80,044)
Administrative expenses
3
(458,895)
(435,493)
Compliance and regulatory expenses
3
(222,645)
(223,607)
Occupancy expenses
(93,290)
(85,169)
Written-off exploration expenditure
(178,431)
(636,964)
Equity based payments
(52,722)
(29,270)
Impairment of financial assets
(250,167)
(574,414)
Profit/(loss) before income tax
(892,253)
(2,124,956)
Income tax (expense)/ benefit
6
-
-
Profit/(loss) for the year from continuing operations
(892,253)
(2,124,956)
Other comprehensive income
-
-
Total comprehensive income/(loss) for the year
(892,253)
(2,124,956)
Earnings/(loss) for the year attributable to:
Members of the parent entity
(891,451)
(2,124,956)
Non-controlling interest
(802)
-
(892,253)
(2,124,956)
Total comprehensive income/(loss) attributable to:
Members of the parent entity
(892,253)
(2,124,956)
Non-controlling interest
-
-
(892,253)
(2,124,956)
Earnings/(loss) per share from continuing and discontinuing
operations
Cents
Basic weighted average earnings/(loss) per share
18
(0.21)
(0.57)
Diluted weighted average earnings/(loss) per share
18
(0.21)
(0.57)
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at 30 June 2024
23
Note
2024
2023
$
$
CURRENT ASSETS
Cash and cash equivalents
7
5,033,336
3,818,431
Trade and other receivables
8
35,760
23,844
Prepayments
5,245
-
TOTAL CURRENT ASSETS
5,074,341
3,842,275
NON-CURRENT ASSETS
Trade and other receivables
8
60,319
49,679
Financial assets
9
588,949
2,868,117
Property, plant and equipment
10
14,016
20,571
Exploration and evaluation assets
11
10,195,974
7,537,894
Rights of use assets
27
200,287
11,637
TOTAL NON-CURRENT ASSETS
11,059,545
10,487,898
TOTAL ASSETS
16,133,886
14,330,173
CURRENT LIABILITIES
Trade and other payables
12
103,592
183,917
Provisions
13
79,412
105,700
Lease liability
27
95,199
7,052
TOTAL CURRENT LIABILITIES
278,203
296,669
NON-CURRENT LIABILITIES
Lease liability
27
113,312
-
TOTAL NON-CURRENT LIABILITIES
113,312
-
TOTAL LIABILITIES
391,515
296,669
NET ASSETS
15,742,371
14,033,504
EQUITY
Issued capital
14
29,420,419
26,872,021
Reserves
15
532,214
503,690
Accumulated losses
16
(14,193,834)
(13,326,581)
Controlling entity interest
15,758,799
14,049,130
Non-controlling interest
(16,428)
(15,626)
TOTAL EQUITY
15,742,371
14,033,504
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended 30 June 2024
24
Issued Capital (Accumulated
Losses)
Option
Reserve
Non-
Controlling
Interest
Total
$
$
$
$
$
Balance at 30 June 2022
26,674,021
(11,457,063)
729,858
(15,626)
15,931,190
Earnings/(loss) for the year
-
(2,124,956)
-
-
(2,124,956)
Other comprehensive income
for the year
-
-
-
-
-
Total comprehensive
income/(loss) for the year
-
(2,124,956)
-
-
(2,124,956)
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
30,000
-
-
-
30,000
Shares to be issued
168,000
-
-
-
168,000
Share issue costs
-
-
-
-
-
Options expired
-
255,438
(255,438)
-
-
Option reserve
-
-
29,270
-
29,270
Balance at 30 June 2023
26,872,021
(13,326,581)
503,690
(15,626)
14,033,504
Earnings/(loss) for the year
-
(891,451)
-
(802)
(892,253)
Other comprehensive income
for the year
-
-
-
-
-
Total comprehensive
income/(loss) for the year
26,872,021
(14,218,032)
503,690
(16,428)
13,141,251
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
2,835,733
-
-
-
2,835,733
Shares to be issued
(168,000)
-
-
-
(168,000)
Share issue costs
(119,335)
-
-
-
(119,335)
Options expired
-
24,198
(24,198)
-
-
Option reserve
-
-
52,722
-
52,722
Balance at 30 June 2024
29,420,419
(14,193,834)
532,214
(16,428)
15,742,371
The accompanying notes form part of these financial statements.
CONSOLIDATED CASH FLOW
STATEMENT
For the year ended 30 June 2024
25
The accompanying notes form part of these financial statements.
Note
2024
2023
$
$
Cash Flows from Operating Activities
Receipts from services agreements
118,196
185,695
Payments to suppliers and employees
(1,417,615)
(1,082,639)
Interest received and bill discounts received
155,559
123,262
Net cash used in operating activities
19
(1,143,860)
(773,682)
Cash Flows from Investing Activities
Purchase of equity investments
(258,500)
(231,651)
Payments for exploration and evaluation
(1,755,876)
(2,896,251)
Payments for purchase of exploration assets
(449,009)
(303,428)
Proceeds from sale of equity investments
2,963,125
602,584
Proceeds from term deposit bond
(10,640)
-
Net cash used in investing activities
489,100
(2,828,746)
Cash Flows from Financing Activities
Proceeds from issue of share
1,989,000
-
Share issue costs
(119,335)
-
Net cash provided by financing activities
1,869,665
-
Net increase/(decrease) in cash held
1,214,905
(3,082,878)
Cash and cash equivalents at beginning of the financial
year
3,818,431
6,901,309
Cash and cash equivalents at end of the financial year
7
5,033,336
3,818,431
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
26
1. STATEMENT OF MATERIAL 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 20 September 2024 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 $892,253 (2023: $2,124,956) and net cash outflows from operating
activities of $1,143,860 (2023: $773,682). There was a working capital surplus of $4,796,138 at 30 June 2024 compared to
a surplus of $3,545,606 at 30 June 2023. The Company also has access to financial assets that are valued at $588,949
(2023: $2,868,117).
Pending the outcome of various transactions, the Group could have tenement and exploration commitments of
$1,807,926 (2023: $974,256) 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. Considering 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 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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
27
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, at 30 June 2024 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 based on 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 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 2024.
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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
28
(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.
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 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 marketplace (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:
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
29
•
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 considering 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).
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.
(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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
30
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.
(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 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).
The 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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
31
(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.
(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, considering 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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
32
(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:
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 consider 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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
33
(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.
(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:
30 June 2024
Recurring fair value measurements
Note
Level 1
$
Level 2
$
Level 3
$
Total
$
Financial assets at fair value through profit or loss:
-
Australian listed shares at fair value
588,949
-
-
588,949
588,949
-
-
588,949
30 June 2023
Recurring fair value measurements
Note
Level 1
$
Level 2
$
Level 3
$
Total
$
Financial assets at fair value through profit or loss:
-
Australian listed shares at fair value
2,868,117
-
-
2,868,117
2,868,117
-
-
2,868,117
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
34
(v)
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
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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
35
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.
(w)
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 2024 and determined that there is no material impact of the Standards and Interpretations in issue not
yet adopted by the Company.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
36
2024
2023
$
$
2.
REVENUE & OTHER INCOME
Revenue from Continuing Operations
-
interest received
155,559
123,262
-
recoupment of office costs on-charged
141,907
185,696
297,466
308,958
Other Income
-
government grant received
-
162,397
-
other
53,335
79,515
53,335
241,912
3.
PROFIT/(LOSS) FOR THE YEAR
Profit/(loss) before income tax from continuing operations includes the following specific expenses:
Expenses
Administrative expenses
Consulting
42,093
81,188
Advertising, printing and stationery
7,596
63,912
Travel and accommodation
37,743
51,762
Memberships
40,122
35,261
Insurance
73,467
39,831
Other
257,874
163,539
458,895
435,493
Compliance and regulatory expenses
ASX, ASIC, registry and secretarial
203,159
156,647
Legal
19,486
66,960
222,645
223,607
Employee Benefits
Superannuation
90,007
91,354
4.
KEY MANAGEMENT PERSONNEL
Interests of Key Management Personnel
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 2024. The totals of
remuneration paid to key management personnel of the Company during the year are as follows:
Short-term employee benefits
518,000
530,000
Post-employment benefits
50,160
46,200
Termination benefits
-
-
Other long-term benefits
-
-
Share based payments
-
29,270
568,160
605,470
A total of $130,333 (2023: $280,174) was capitalised to exploration expenditure.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
37
Related Party Information
The Company received a total of $Nil (2023: $69,883) 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 (2023: $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.
The Company paid $119,335 (2023: $Nil) for the provision of Lead Manager services to Barclay Wells Ltd. Barclay Wells
is considered to be a related Party, as a Barclay Wells executive director, Mr Terry Gardiner, is also a director of Cazaly
Resources Ltd.
5.
AUDITORS REMUNERATION
2024
$
2023
$
Remuneration of the auditor for:
- Auditing or reviewing the financial report
24,379
29,933
24,379
29,933
6.
INCOME TAX EXPENSE
The components of the tax expense/(income) comprise:
Current tax
-
-
Deferred tax
-
-
-
-
(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
(892,253)
(2,124,956)
Prima facie tax benefit on loss from ordinary activities before income
tax at 25% (2023: 25%)
(223,063)
(531,239)
Add/(subtract):
Tax effect of:
Other non-allowable items
21,000
47,618
Effect of tax losses derecognised
300,593
244,063
Derecognition of previously recognised tax losses
-
-
Current year capital losses not recognised
15,900
-
Tax benefit of deductible equity raising costs
-
(2,250)
Movement in unrecognised temporary differences
(244,430)
241,807
Income tax expense (benefit) attributable to entity
-
-
(b) Recognised deferred tax assets at 25% (2023: 25%) comprise the following:
Carry forward revenue losses
1,335,668
932,268
Capital raising and future black hole deductions
6,952
14,089
Provisions and accruals
120,728
124,425
Other
114,406
56,107
1,577,754
1,126,889
Less: Set off of deferred tax liabilities
(1,577,754)
(1,126,889)
-
-
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
38
Recognised deferred tax assets at 25% (2023: 25%) comprise the
following:
2024
$
2023
$
Prepayments
(1,311)
-
Exploration expenditure
(1,526,371)
(1,125,743)
ROU assets
(50,072)
(1,146)
(1,577,754)
(1,126,889)
Less: Set off of deferred tax asset
1,577,754
1,126,889
-
-
(c)
Deferred tax recognised directly in equity:
Relating to equity raising costs
-
-
-
-
(d)
Unrecognised deferred tax assets at 25% (2023: 23%) 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
419,184
464,296
Tax capital losses
145,900
-
Tax revenue losses
2,146,240
2,025,081
2,711,324
2,489,377
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
5,033,136
3,818,231
Petty cash
200
200
5,033,336
3,818,431
8.
TRADE AND OTHER RECEIVABLES
Current
Trade receivables
23,711
5,584
Other receivables
12,049
18,260
35,760
23,844
Other receivables normally have 30–60-day terms. At 30 June 2024, $Nil (2023: $36,916) is receivable from companies
related to the Directors.
Non-Current
Bonds
60,319
49,679
60,319
49,679
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
588,949
2,868,117
588,949
2,868,117
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
39
2024
$
2023
$
10.
PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment
At cost
351,386
351,386
Accumulated depreciation
(339,467)
(333,521)
11,919
17,865
Motor Vehicle
At cost
65,878,
65,878
Accumulated depreciation
(63,781)
(63,172)
2,097
2,706
14,016
20,571
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end
of the current financial year.
2024
Plant and Equipment
$
Motor Vehicles
$
Total
$
Balance at the beginning of the year
17,865
2,706
20,571
Additions
-
-
-
Disposals/write offs
-
-
-
Depreciation expense
(5,946)
(609)
(6,555)
Carrying amount at the end of the year
11,919
2,097
14,016
2023
Plant and Equipment
$
Motor Vehicles
$
Total
$
Balance at the beginning of the year
27,261
3,489
30,750
Additions
-
-
-
Disposals/write offs
-
-
-
Depreciation expense
(9,396)
(783)
(10,179)
Carrying amount at the end of the year
17,865
2,706
20,571
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
40
2024
$
2023
$
11.
EXPLORATION AND EVALUATION ASSETS
Non-Current
Costs carried forward in respect of areas of interest in:
Exploration and evaluation phases at cost
10,195,974
7,537,894
Movement – exploration and evaluation
Brought forward
7,537,893
5,335,775
Exploration expenditure capitalised during the year
1,708,775
2,367,655
Acquisitions
1,127,737
471,428
Exploration expenditure capitalised on tenements sold during the year
-
-
Capitalised expenditure on tenements sold
-
-
Exploration expenditure written off
(178,431)
(636,964)
10,195,974
7,537,894
Exploration expenditure, including tenement acquisitions, totalled $2,836,512 for the year (2023: $2,839,083). The main
expenditure was on its new Canadian projects, the continued good standing of Ashburton and Halls Creek tenements
and new project generation. Exploration expenditure written off for the year was $178,341 (2023: $636,964) 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
41,417
114,442
Other creditors and accrued expenses
62,175
69,475
103,592
183,917
Creditors are non-interest bearing and settled on 30–45-day terms.
13.
PROVISIONS
Current
Provision for annual leave
41,459
35,918
Provision for long service leave
37,953
69,782
79,412
105,700
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
41
2024
$
2023
$
14.
ISSUED CAPITAL
461,302,991 fully paid ordinary shares (2023: 371,821,793) with
no par value
29,420,419
26,872,021
Share Movements
30 June
2024
30 June
2024
30 June
2023
30 June 2023
Number
$
Number
$
Balance at the beginning of the year
371,821,793
26,704,021
370,821,793
26,674,021
Issue of shares - finders fee
(i)
-
-
1,000,000
30,000
Issue of shares - finders fee
(ii)
4,115,663
168,000
-
-
Issue of shares – Sundown Li Project
(iii)
19,065,535
678,733
-
-
Issue of shares - $0.03 placement
(iv)
59,633,333
1,789,000
-
-
Issue of shares - $0.03 placement
(v)
6,666,667
200,000
-
-
Balance at the end of the year
461,302,991
29,539,754
371,821,793
26,704,021
Share issue costs
-
(119,335)
-
-
Shares to be issued
(ii)
-
-
4,115,663
168,000
461,302,991
29,420,419
375,937,456
26,872,021
(i)
Shares issued in respect of a finder’s fee for the Abenab Project in Namibia.
(ii)
Shares issued to Exiro Minerals Corp (value CDN$150,000) as part of a consulting and finder’s fee agreement in
relation to the Company’s Canadian projects (shares issued 24 July 2023).
(iii)
Shares issued to 1Minerals Corp as per the terms and conditions of an agreement for a 25% interest in the
Sundown project in Quebec (shares issued 11 August 2023).
(iv)
Shares issued as per the terms and conditions of a placement announced on 27 November 2023 (56,666,666
shares issued on 6 December 2023 and 2,966,667 shares issued on 7 December 2023).
(v)
Upon receipt of shareholder approval, 6,666,667 shares were issued to a director (Mr Terry Gardiner or his
nominee) as per the terms and conditions of a placement announced on 27 November 2023 (shares issued 21
June 2024).
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
Exercise
Price
Number on
issue at 30
June 2023
Issued
during the
year
Exercised/
Expired/
Cancelled
Number on
issue at 30
June 2024
On or before 8/3/24
$0.05
2,000,000
-
(2,000,000)
-
On or before 11/6/24
$0.066
500,000
-
(500,000)
-
On or before 19/11/23
$0.067
2,000,000
-
(2,000,000)
-
On or before 12/10/24
$0.056
1,500,000
-
-
1,500,000
On or before 12/10/25
$0.056
1,500,000
-
-
1,500,000
On or before 5/8/24
$0.06
500,000
-
-
500,000
On or before 25/11/25
$0.047
2,000,000
-
-
2,000,000
On or before 13/12/26 (i)
$0.045
-
5,000,000
-
5,000,000
10,000,000
5,000,000
(4,500,000)
10,500,000
(i)
Issued to Barclay Wells as part of the Lead Manager’s fee for the placement announced 27 November 2023.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
42
Equity Based Payments
Options are issued to directors, employees and consultants. The options may be subject to performance criteria, and
are issued to directors, employees and consultants 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 financial
year was $52,722. Options were issued as part of the Lead Manager’s fee and were issued on 14 December 2023.
Allottee
Number of
Options
Fair Value
at Grant
Date per
Option
Estimated
Volatility
Life of
Option
(years)
Exercise
Price
Share Price
at Grant
Date
Risk Free
Interest Rate
Consultant
5,000,000
$0.010544
70%
3
$0.045
$0.029
3.25%
Capital risk management
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
2024 and 30 June 2023 are as follows:
2024
2023
$
$
Cash and cash equivalents
5,033,336
3,818,431
Trade and other receivables
35,760
23,844
Financial assets
588,949
2,868,117
Current liabilities
(278,203)
(296,669)
Working capital position
5,379,842
6,413,723
15.
OPTION RESERVE
Opening balance
503,690
729,858
Equity based payments (refer note 14)
52,722
29,270
Transfer to Accumulated Loses
(24,198)
(255,438)
Closing balance
532,214
503,690
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
(13,326,581)
(11,457,063)
Net earnings/(loss) attributable to members
(891,451)
(2,124,956)
Transfer from Option Reserve
24,198
255,438
Closing balance
(14,193,834)
(13,326,581)
17.
FINANCIAL RISK MANAGEMENT
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.
Maturity profile of financial instruments
The following tables detail the Group’s exposure to interest rate risk as at 30 June 2024 and 30 June 2023:
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
43
30 June 2024
Floating
Interest
Rate
Fixed
Interest
maturing
in 1 year or
less
Non-
interest
bearing
2024
Total
$
$
$
$
Financial assets
Cash and cash equivalents
783,136
4,250,000
200
5,033,336
Trade and other receivables
-
60,319
35,760
96,079
Financial assets – held for trading
-
-
588,949
588,949
783,136
4,310,319
624,909
5,718,364
Weighted average effective interest rate
4.18%
Financial Liabilities
Trade and other payables
-
-
103,593
103,593
-
-
103,593
103,593
30 June 2023
Floating
Interest
Rate
Fixed
Interest
maturing
in 1 year or
less
Non-
interest
bearing
2023
Total
$
$
$
$
Financial assets
Cash and cash equivalents
568,231
3,250,000
200
3,818,431
Trade and other receivables
-
49,679
23,844
73,523
Financial assets – held for trading
-
-
2,868,117
2,868,117
568,231
3,299,679
2,892,161
6,760,071
Weighted average effective interest rate
3.57%
Financial Liabilities
Trade and other payables
-
-
183,917
183,917
-
-
183,917
183,917
Net Fair Values
The carrying value and net fair values of financial assets and liabilities at balance date are:
2024
2023
Carrying
Amount
$
Net fair
Value
$
Carrying
Amount
$
Net fair
Value
$
Financial assets
Cash and deposits
5,033,336
5,033,336
3,818,431
3,818,431
Receivables
96,079
96,079
73,523
73,523
Investment held for trading
588,949
588,949
2,868,117
2,868,117
5,718,364
5,718,364
6,760,071
6,760,071
Financial liabilities
Payables
103,593
103,593
183,917
183,917
103,593
103,593
183,917
183,917
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.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
44
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 Group has
adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where
appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit
ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread
amongst approved counterparties.
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 invested with counterparties with a Standard & Poor’s rating of at least AA-. The
Group’s surplus funds are invested with AA- rated financial institutions, the amount is $5,033,336 (2023: $3,818,431).
Liquidity risk
The responsibility for liquidity risk management rests with the Board. The Group manages liquidity risk by maintaining
sufficient cash or credit facilities to meet the operating requirements of the business and investing excess funds in
highly liquid short-term investments.
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.
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.
2024
$
2023
$
Change in loss
•
Increase in interest rate by 100 basis points
50,178
37,921
•
Decrease in interest rate by 100 basis points
(50,178)
(37,921)
Change in equity
•
Increase in interest rate by 100 basis points
37,921
37,921
•
Decrease in interest rate by 100 basis points
(37,921)
(37,921)
18.
EARNINGS PER SHARE ATTRIBUTABLE TO MEMBERS
a)
Reconciliation of earnings to profit or loss:
Earnings/(loss) for the year
(891,451)
(2,124,956)
Earnings/(loss) used to calculate basic and diluted EPS
(891,451)
(2,124,956)
2024
2023
No. of Shares
No. of Shares
b)
Basic and diluted weighted average number of ordinary shares
outstanding during the year used in calculating dilutive EPS
461,302,991
371,821,793
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
45
19.
CASH FLOW INFORMATION
2024
$
2023
$
Reconciliation of cash flows from operating activities with profit/(loss) after
income tax
Profit/(Loss) after income tax
(892,253)
(2,124,956)
Non-operating cash flows in loss for the year:
Depreciation
100,503
80,044
Net (Gain)/ Loss on sale of shares
(675,625)
63,562
Finance costs on lease
(86,954)
(81,662)
Employee & Consultant equity settled transactions
52,722
29,270
Fair value adjustment to investments
250,167
574,414
Exploration write-off
178,431
636,964
Changes in assets and liabilities:
Decrease/(increase) in trade receivables and prepayments
(11,547)
47,247
Increase/(decrease) in trade payables, accruals and employee entitlements
(59,304)
1,435
Cash outflow from operations
(1,143,860)
(773,682)
20.
COMMITMENTS
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 may be payable:
No longer than one year
1,807,926
974,256
Longer than one year, but not longer than five years
2,294,355
3,003,691
Longer than five years
-
10,924
4,102,281
3,988,871
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.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Name
Type of Entity
%
Owned
Country of
Incorporation
Australian or
foreign resident
Foreign tax
jurisdiction of
foreign
residents
Parent Entity
Cazaly Resources Limited
Body corporate
NA
Australia
Australia
Australia
Controlled Entities
Cazaly Iron Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Sammy Resources Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Cazroy Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Baker Fe Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Baldock Fe Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Lockett Fe Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Hase Fe Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Vanrock Resources Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Discovery Minerals Pty Ltd
Body corporate
80%
Australia
Australia
Australia
Kunene North Pty Ltd
Body corporate
100%
Australia
Australia
Australia
Philco One Hundred &
Seventy-Three (Pty) Ltd
Body corporate
95%
Namibia
Foreign
Namibia
Mulga Minerals Inc
Body corporate
100%
Canada
Foreign
Canada
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
46
22.
OPERATING SEGMENTS
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board
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 in this segment.
Segment assets and liabilities
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.
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.
Exploration
Unallocated
Total
2024
$
$
$
Revenue
Interest received
-
155,559
155,559
Gain on Sale of Shares
-
675,625
675,625
Other
53,335
141,907
195,242
Total segment revenue
53,335
973,091
1,026,426
Segment net operating profit (loss)
before tax
(125,096)
(767,157)
(892,253)
Depreciation
-
100,503
100,503
Impairment of exploration assets
178,431
-
178,431
Share based payments
-
52,722
52,722
Segment assets
10,195,974
5,937,912
16,133,886
Exploration expenditure
10,195,974
-
10,195,974
Property, plant & equipment
-
14,016
14,016
Segment liabilities
112,009
279,509
391,518
Exploration
Unallocated
Total
2023
$
$
$
Revenue
Interest received
-
123,262
123,262
Other
241,912
185,696
427,608
Total segment revenue
241,912
308,958
550,870
Segment net operating profit (loss)
before tax
(395,051)
(1,729,905)
(2,124,956)
Depreciation
-
80,044
80,044
Impairment of exploration assets
636,964
-
636,964
Share based payments
-
20,571
20,571
Segment assets
7,537,894
6,792,278
14,330,172
Exploration expenditure
7,537,894
-
7,537,894
Property, plant and equipment
-
20,571
20,571
Segment liabilities
38,015
258,654
296,669
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
47
2024
$
2023
$
23.
PARENT ENTITY DISCLOSURES
(a) Statement of financial position
Assets
Current assets
5,069,402
3,817,233
Non-current assets
10,313,918
8,041,001
Total assets
15,383,320
11,858,234
Liabilities
Current liabilities
278,206
296,642
Non-current liabilities
113,312
-
Total liabilities
391,518
296,642
Equity
Issued capital
29,420,419
26,872,025
Reserves:
Equity settled employee benefits
759,128
759,128
Retained profits
(15,187,745)
(16,069,561)
Total Equity
14,991,802
11,561,592
(b) Statement of Profit or Loss and Other Comprehensive
Income
Total profit/ (loss)
(884,945)
(1,935,148)
Total comprehensive income
(884,945)
(1,935,148)
Loans to Controlled Entities
Loans are provided by Cazaly Resources Ltd (‘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
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.
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
Project in Namibia. The following contingent liabilities remain for Cazaly’s registered 95% interest at 30 June 2024:
Under the KDN JV
KDN JV’s partner’s remaining 5% is free carried to a definitive feasibility study.
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
48
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 Vox Royalty Australia 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
Parker Range
On 19 August 2019, the sale of Parker Range to Mineral Resources was completed pursuant to which Cazaly is entitled
to a royalty 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.
Hamersley
Following the sale of the Hamersley Iron Ore Project in 2021, to Equinox Resources Limited (ASX: EQN), the Company is
entitled to 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.
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):
2024
2023
Number of
Options
Weighted Ave
Exercise Price
$
Number of
Options
Weighted
Ave Exercise
Price $
Balance at beginning of reporting period
8,500,000
0.056
14,500,000
0.053
Expired during the year
(4,500,000)
0.0593
(10,000,000)
-
Vested during the year
1,500,000
0.056
1,500,000
0.056
Issued during the year
5,000,000
0.045
2,500,000
0.050
Balance at end of reporting period
10,500,000
0.048
8,500,000
0.056
Exercisable at end of reporting period
10,500,000
8,500,000
The options outstanding at 30 June 2024 had a weighted average remaining life of 1.73 years (2023 – 1.17 years). The
weighted average fair value of the options outstanding at 30 June 2024 was $0.015 (2023 - $0.020).
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2024
49
27.
RIGHT OF USE ASSETS AND LEASE LIABILITY
Right-of-use assets
2024
$
2023
$
Office lease
At carrying amount
11,637
81,502
Additions
288,413
-
Written off – Repairs & Maintenance
(5,815)
-
Less: Accumulated amortisation
(93,948)
(69,865)
200,287
11,637
Leases
As of 30 June 2024, the net carrying amount of the office held under a lease arrangement is $208,511 (2023 - $7,052).
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 2023
7,052
88,714
Additions
288,413
-
Accretions of interest
13,921
3,109
Payments
(100,875)
(84,771)
As at 30 June 2024
208,511
7,052
Current
95,199
7,052
Non-current
113,312
-
The following are the amounts recognised in profit or loss:
Depreciation
93,948
69,865
Interest expense on lease liabilities
13,921
3,109
Total amount recognised in profit or loss
107,869
72,974
In 2024, the Group had total cash outflows for leases of $100,875 (2023: $84,771).
DIRECTORS’ DECLARATION
Cazaly Resources Limited Annual Report 2024
50
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.
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
b.
give a true and fair view of the financial position as at 30 June 2024 and of the performance for the
year ended on that date of the consolidated group.
2.
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;
3.
in the directors’ opinion the information disclosed in the consolidated entity disclosure statement in note 21 is
true and correct; and
4.
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
20 September 2024
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 2024,
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 material accounting policy information, the consolidated entity disclosure
statement and the director’s 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 2024 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. 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
(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.
Our procedures included, amongst others:
•
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
Consolidated Entity’s rights to tenure by
corroborating to government registries and
evaluating agreements in place with other
parties as applicable;
•
We tested the additions to capitalised
expenditure for the year by evaluating a
sample
of
recorded
expenditure
for
consistency to underlying records, the
capitalisation
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;
and
•
We assessed each area of interest for one
or more of the following circumstances that
may indicate impairment of the capitalised
expenditure:
o
the licenses for the right to explore
expiring in the near future or are not
expected
to
be
renewed;
Key Audit Matter
How our audit addressed the Key Audit Matter
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
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
disclosures in note 11 to the financial 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 2024, 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, and the
consolidated entity disclosure statement that is true and correct and is free of 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 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 2024.
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 Cazaly Resources Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated this 20th day of September 2024
Perth, Western Australia
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2024
57
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 16 September 2024.
DETAILS OF HOLDERS OF EQUITY SECURITIES
ORDINARY SHAREHOLDERS
There are 461,302,991 fully paid ordinary shares on issue, held by 2,285 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
Fully Paid Ordinary
Ordinary Shareholders
Number
%
Kingsreef Pty Ltd (NB & DL Family A/c)
31,529,841
6.83
Mr Clive Bruce Jones (Alyse Investment A/c)
22,482,040
4.87
ACN 139 886 025 Pty Ltd
16,117,640
3.49
Mr Terry James Gardiner
14,666,667
3.18
Jetosea Pty Ltd
13,826,075
3.00
Raymond Gardener & Hineaka Black (Tumeke S/Fund)
10,150,000
2.20
Mr C W Chalwell & Mr I W Wilson (Chalwell Pension Fund A/c)
9,000,000
1.95
Citicorp Nominees Pty Ltd
8,422,265
1.83
Mr Derek Patrick Knox
8,351,822
1.81
Jaz Future Fund Pty Ltd (ARR Superannuation Fund)
7,000,000
1.52
Tilpa Pty Ltd (Tilpa Pty Ltd Staff S/F A/c)
6,500,000
1.41
Widerange Corporation Pty Ltd
5,511,667
1.19
Kingsreef Pty Ltd
5,343,550
1.16
Mr Anthony Robert Ramage
5,000,000
1.08
Mr Thomas Francis Corr
5,000,000
1.08
Estate Mr Nathan Bruce McMahon
4,793,755
1.04
BNP Paribas Noms Pty Ltd
4,461,100
0.97
Brevmar Pty Ltd (Glen Invest S/Fund)
4,200,000
0.91
Cicchino Pty Ltd (Cicchino Share A/c)
4,000,000
0.87
Mr Dion Morrison
4,000,000
0.87
190,356,422
41.26%
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 1,398 shareholders who hold less than a marketable parcel of shares.
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2024
58
DISTRIBUTION OF SHARE HOLDERS
Ordinary Shares
1 to
1,000
125,578
1,001 to
5,000
1,495,733
5,001 to
10,000
2,100,778
10,001 to
100,000
30,145,226
100,001 and over
427,426,676
461,302,991
SUBSTANTIAL SHAREHOLDERS
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
Nathan McMahon & associated entities
37,363,256
Clive Jones & associated entities
23,424,904
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).
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2024
59
INTEREST IN MINING TENEMENTS AS AT 16 SEPTEMBER 2024
AUSTRALIA
Managed by the Company:
Tenement
Project Name
Entity
% Interest
M 80/0247
Mt Angelo
Cazaly
100
E 80/5307
Halls Creek
Cazaly
100
E 08/3260
Ashburton
Cazaly
100
E 08/3261
Ashburton
Cazaly
100
E 08/3262
Ashburton
Cazaly
100
E 08/3265
Ashburton
Cazaly
100
E 08/3272
Ashburton
Cazaly
100
E 28/3275 *
Kurnalpi
Sammy
100
E45/6717 *
Marble Bar
Sammy
100
E45/6719 *
Marble Bar
Sammy
100
E45/6721 *
Marble Bar
Sammy
100
E 52/4234
Lyons-Bangemall
Sammy
100
E 52/4212
Lyons
Sammy
100
E 52/4040
Lyons
Sammy
50
E 09/2671
Lyons
Sammy
50
E 38/3904 *
Virginia Range
Cazaly
100
E 47/4979 *
West Pilbara
Sammy
100
E 38/3864 *
Mt Venn
Sammy
100
E38/3865
Mt Venn
Sammy
100
*applications
Joint Venture Tenements not Managed by the Company:
Tenement
Project Name
Entity
% Interest
E 80/4808
McKenzie Springs
Sammy
30
E 38/3111
Mt Venn
Cazaly
20
E 38/3150
Mt Venn
Cazaly
20
E 38/3581
Mt Venn
Cazaly
20
E 09/2346
Errabiddy
Sammy
20
E 31/1019
Yilgangi
Cazaly
10
E 31/1020
Yilgangi
Cazaly
10
M 31/0427
Yilgangi
Cazaly
10
NAMIBIA
Tenement
Project Name
Entity
% Interest
EPL 6667
Kaoko
Kunene North
95
EPL 9110 *
Abenab North
Kunene North
95
*application
CANADA
Claim Nos.
Project Name
Entity
% Interest
688637
Carb Lake
Mulga Minerals
100
688626
Carb Lake
Mulga Minerals
100
688571-688624
Carb Lake
Mulga Minerals
100
688532-688568
Carb Lake
Mulga Minerals
100
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2024
60
Claim Nos.
Project Name
Entity
% Interest
CDC2692045
Sundown
Mulga Minerals
25
CDC2692770 - CDC2692787
Sundown
Mulga Minerals
25
CDC2692815 - CDC2692823
Sundown
Mulga Minerals
25
CDC2692844 - CDC2692848
Sundown
Mulga Minerals
25
CDC2692852 - CDC2692856
Sundown
Mulga Minerals
25
CDC2692859 - CDC2692877
Sundown
Mulga Minerals
25
CDC2692879 - CDC2692895
Sundown
Mulga Minerals
25
CDC2694070 - CDC2694105
Sundown
Mulga Minerals
25
CDC2694124 - CDC2694125
Sundown
Mulga Minerals
25
CDC2694127 - CDC2694159
Sundown
Mulga Minerals
25
CDC2694805 - CDC2694810
Sundown
Mulga Minerals
25
CDC2702917 - CDC2706250
Sundown
Mulga Minerals
25
CDC2706265 - CDC2706281
Sundown
Mulga Minerals
25
CDC2706322 - CDC2706338
Sundown
Mulga Minerals
25
CDC2706489 - CDC2706503
Sundown
Mulga Minerals
25
CDC2712582 - CDC2712583
Sundown
Mulga Minerals
25
CDC2712591 - CDC2712594
Sundown
Mulga Minerals
25
CDC2714462 - CDC2714465
Sundown
Mulga Minerals
25
CDC2715879 - CDC2715880
Sundown
Mulga Minerals
25
CDC2719108 - CDC2719124
Sundown
Mulga Minerals
25
CDC2723400 - CDC2723414
Sundown
Mulga Minerals
25
CDC2728079 - CDC2728094
Sundown
Mulga Minerals
25
CDC2745317
Sundown
Mulga Minerals
25
CDC2745988 - CDC2746004
Sundown
Mulga Minerals
25
CDC2755227 - CDC2755282
Sundown
Mulga Minerals
25
CDC2755296 - CDC2755311
Sundown
Mulga Minerals
25
CDC2755573 - CDC2755584
Sundown
Mulga Minerals
25
CDC2756049 - CDC2756082
Sundown
Mulga Minerals
25
CDC2757063 - CDC2757095
Sundown
Mulga Minerals
25
CDC2757211 - CDC2757221
Sundown
Mulga Minerals
25
CDC2757594
Sundown
Mulga Minerals
25
CDC2757683
Sundown
Mulga Minerals
25
CDC2758850 - CDC2758982
Sundown
Mulga Minerals
25
CDC2759016 - CDC2759021
Sundown
Mulga Minerals
25
CDC2760330 - CDC2760335
Sundown
Mulga Minerals
25
CDC2706279 (a)
Sundown
Mulga Minerals
25
CDC2706328 (a)
Sundown
Mulga Minerals
25
CDC2706497 (a)
Sundown
Mulga Minerals
25
CDC2706498 (a)
Sundown
Mulga Minerals
25
CDC2712593 (a)
Sundown
Mulga Minerals
25
CDC2692860 (b)
Sundown
Mulga Minerals
25
CDC2692873 (b)
Sundown
Mulga Minerals
25
CDC2694129 (b)
Sundown
Mulga Minerals
25
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)
i