Cohiba Minerals Limited
ABN 72 149 026 308
Annual Report - 30 June 2022
Cohiba Minerals Limited
Contents
30 June 2022
Corporate directory
Review of operations
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Cohiba Minerals Limited
Shareholder information
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Cohiba Minerals Limited
Corporate directory
30 June 2022
Directors
Mr Mordechai Benedikt (Executive Chairman)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Chief Executive Officer and Executive Director)
Company secretaries
Mr Justin Mouchacca
Registered office
Principal place of business
Share register
Auditor
Level 21, 459 Collins Street
Melbourne, VIC 3000
Ph: (03) 8630 3321
Level 21, 459 Collins Street
Melbourne, VIC 3000
Automic Registry Services
Level 5
126 Philip Street
Sydney NSW 2010
Ph: (02) 9698 5414
William Buck
Level 20, 181 William Street
Melbourne VIC 3000
Stock exchange listing
Cohiba Minerals Limited securities are listed on the Australian Securities Exchange
(ASX codes: CHK)
Website
www.cohibaminerals.com.au
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Cohiba Minerals Limited
Review of operations
30 June 2022
Highlights:
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A Farm-In Agreement was signed with Tigers Dominion Group Pty Ltd over the Warriner Creek Project in the
Gawler Craton;
EPEPR documentation including the Heritage Survey was approved for the Warriner Creek Project;
EPEPR documentation including the Heritage Survey was approved for additional drilling at the Horse Well
Project;
HWDD05 and HWDD05W1 (wedge) drill holes completed at Horse Well for a total of 2,753.16m;
PSDDH01 and PSDDH02 drill holes completed at Pernatty C for a total of 2,109.3m;
CHK22WCE01 drill hole completed over eastern target at Warriner Creek for a total of 658.6m;
CHK22WCW01 and CHK22WCW02 drill holes complete over western target at Warriner Creek for a total of
423.0m;
HWDD06 drill hole commenced at the Horse Well Project;
HWDD07 drill hole planned for the Horse Well Project;
Major mineralising structure named Bluebush Fault identified at the Horse Well Project;
Major mineralogical and petrological work conducted on the drill core from Horse Well Project;
The Company completed a Work Health and Safety (WHS) system;
All tenements within the Horse Well, Pernatty C (Mt Gunson) and Lake Torrens areas were maintained in good
standing;
All tenements in Queensland (Wee MacGregor, Mt Gordon, Success and Mt Cobalt) were maintained in good
standing; and,
The Pyramid Lake tenement in Western Australia was renewed for another 5 years.
Farm-In Warriner Creek Project
Cohiba Minerals Limited (ASX: CHK, ‘Cohiba’ or ‘the Company’) completed 3 drill holes at Warriner Creek with 1 drill hole
(CHK22WCE01) over the Warriner Creek East Prospect and 2 drill holes (CHK22WCW01 & CHK22WCW02) over the
Warriner Creek West Prospect. These drill holes were undertaken as part of the Farm-In Agreement that Cohiba has with
Tigers Dominion Group Pty Ltd (TDG).
The Warriner Creek Project comprises 2 tenements under exploration licence to TDG, EL 6324 (Areas A and B) and EL
6533, which cover a combined area of 346 km2 over strategic IOCG targets in the Gawler Craton (Figure 1).
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Review of operations
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Figure 1: Warriner Creek Project relative to Cohiba’s Olympic Domain tenements & BHP’s Olympic Dam Operation.
CHK22WCE01 was drilled at the Warriner Creek East Prospect and targeted a Carrapateena style IOCG deposit where
there is an isolated low-order magnetic anomaly and a near-coincident gravity anomaly. CHK22WCE01 was completed at a
final length of 658.6m. The drill hole was targeting a semi-coincident gravity and magnetic anomaly of similar proportions
and intensity to the Carrapateena anomalies, beneath 400m of cover. CHK22WCE01 intersected basement rocks considered
to be Mount Woods Domain of gneiss, granite gneiss and associated mafic dyke. The hole ended in a less altered and
deformed dolerite which is considered to be related to Hiltaba aged intrusions.
CHK22WCW01 and CHK22WCW02 were drilled at the Warriner Creek West Prospect and targeted a Prominent Hill style
target zone which exhibits a moderately intense magnetic anomaly. CHK22WCW01 was drilled to a final length of 187.4m in
order to test a magnetic high while CHK22WCW02 was stepped out from the first by 120m and angled at -80° to further test
the same magnetic anomaly. CHK22WCW02 was drilled to a final length of 235.6m.
The Warriner Creek West Prospect is in close proximity to Oz Minerals Prominent Hill IOCG copper-gold mine, and Peak
Iron’s Peculiar Knob mine, which also has IOCG affinities. The target was delineated as a magnetic high in what is otherwise
an area characterised by low magnetic responses. Magnetite is associated with IOCG end member style mineralisation, such
as seen in the nearby Peculiar Knob and Cairn Hill deposits. Historical drilling in the area indicates the potential for Rare
Earth Elements (REE) associated with sericite alteration and these will be fully investigated along with the potential for gold
mineralisation.
CHK22WCW01 encountered a reasonable thick cover sequence with running sands and sandy conglomerate which was
indicative of a palaeochannel. Basement was encountered at 110.9m and comprised a crystalline medium-grained relatively
unaltered amphibolite gneiss. Sericite alteration with very strong magnetite was encountered in places and some of the
banded material also contained strong magnetite. At 126m a highly magnetic mafic sill with minor pyrite and trace chalcopyrite
in veins was encountered. The dominant rock type was shown to be a strongly banded amphibolite gneiss with minor
pegmatite layers dipping due south at ~approximately 50°.
In CHK22WCW02 a magnetite zone was encountered at 195m which aligns with what was seen in the top of CHK22WCW01.
This magnetite forms a contact between calcareous meta-psammite and an amphibole-biotite gneiss that was also
intersected in CHK22WCW01. The blue line in the diagram shows the contact, which would explain the magnetic anomaly.
The magnetite has been interpreted as a hydrothermal magnetite alteration, rather than a strataform magnetite BIF, due to
the associated brecciation, massive banding and associated tension veins with pyrite and minor disseminated chalcopyrite.
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Review of operations
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South Australian (Olympic Domain) Tenements
“Horse Well” Area
Drill hole HWDD05 was an angled hole (azimuth 55° and dip 80°) drilled from virtually the same collar location as hole
HWDD04 (Figure 2) to further investigate the mineralisation that was encountered in HWDD04.
The collar location for HWDD05 is outlined in Table 1:
Easting
Hole ID
HWDD_05 703670
Northing
6573690
Azimuth Dip
80°
55°
Collar RL
133.8m
Hole Depth (m)
1,417.45
Table 1: Collar location and depth for drill hole HWDD05.
Figure 2: Horse Well Prospect showing location of HWDD05 and HWDD05W1.
The analytical results for drill hole HWDD05 were completed by ALS Laboratories and the results are summarised below:
2m @ 5.2 g/t Au from 928 - 930m *
47m @ 0.18% Cu, 0.18 g/t Au and 1.06 g/t Ag from 965 - 1,012m
including:
0.5m @ 1.63% Cu, 0.61 g/t Au and 9.51 g/t Ag from 986.35m
0.4m @ 1.70% Cu, 2.01 g/t Au and 2.57 g/t Ag from 992.6 m
3.0m @ 1.25 g/t Au from 995.0m
0.5m @ 1.43% Cu, 0.53 g/t Au and 3.28 g/t Ag from 1,009.48m
114.66m @ 0.37% Cu, 0.25 g/t Au and 1.0 g/t Ag from 1,095.34 - 1,210m
including:
0.5m @ 1.60% Cu and 0.63 g/t Au and 1.63 g/t Ag from 1096.5m
0.9m @ 1.63% Cu, 1.0 g/t Au and 3.59 g/t Ag from 1,117.85m
1.0m @ 1.74% Cu, 2.19 g/t Au and 4.53 g/t Ag from 1,122.0m
1.0m @ 0.85% Cu, 5.31 g/t Au and 6.65 g/t Ag from 1,123.5m
0.91m @ 3.21% Cu, 1.15 g/t Au and 2.81 g/t Ag from 1,158.85m
1.14m @ 1.55% Cu, 1.78 g/t Au and 2.84 g/t Ag from 1,173.36
0.8m @ 10.85% Cu, 2.94 g/t Au and 20.6 g/t Ag from 1,199.0m
0.5m @ 1.18% Cu, 0.26 g/t Au and 3.2 g/t Ag from 1,326.5 - 1,327m
23m @ 0.37% Cu, 0.10 g/t Au and 1.9 g/t Ag from 1,362 - 1,385m
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* There was no sampling from 930 – 965m (35m) due to a lack of visible mineralisation but this interval will be assayed to
investigate possible continuation of the gold recorded from 928 – 930m.
An initial technical review of the drill core showed that the mineralisation, brecciation and alteration styles in some of the
mafic units are typical of an IOCG deposit (Figure 3) and that the structural history of the veins reflects the “big picture”
structural evolution of the Olympic Dam Breccia Complex (ODBC) with early shear and late dilational characteristics.
HWDD05 showed a strong spatial correlation between iron (Fe), copper (Cu), gold (Au), silver (Ag) and a reasonably good
correlation with uranium (U) which are key characteristics of the ODBC.
Figure 3: Mafic intrusive with hematite and sericite alteration, cross-cutting veins and chalcopyrite mineralisation at 1,159m
(assayed 3.21% Cu and 1.15 g/t Au).
Drill hole HWDD05W1 was an angled (i.e. curved) hole drilled from HWDD05 commencing at a depth of 747.10m for a total
hole length of 1,335.7m and a final azimuth (TN) of 40.8° and a dip of 59.9°.
The collar location for HWDD05 is outlined in Table 2:
Hole ID
Easting
Northing
HWDD05W
1
703670
6573690
Azimuth
(Final)
40.8°
Dip (final)
Collar RL
59.9°
133.8m
Hole Depth
(m)
1,335.7
Table 2: Collar location and depth for drill hole HWDD05W1.
The analytical results for drill hole HWDD05W1 were completed by ALS Laboratories and the results are summarised below:
70m @ 0.30% Cu, 0.36 g/t Au and 1.84 g/t Ag from 962 - 1,032m
including:
0.62m @ 1.64% Cu and 0.14 g/t Au from 974.0m
0.55m @ 1.83% Cu, 0.85 g/t Au and 12.5 g/t Ag from 978.85m
0.35m @ 1.76% Cu, 1.79 g/t Au and 6.9 g/t Ag from 980.75m
0.4m @ 1.68% Cu, 0.72 g/t Au and 3.1 g/t Ag from 988.0m
1.0m @ 1.49% Cu, 0.88 g/t Au and 6.0 g/t Ag from 996.0m
1.0m @ 1.69% Cu, 0.35 g/t Au and 14.5 g/t Ag from 1,004.0m
1.0m @ 3.5 g/t Au and 3.67 g/t Ag from 1,005.0m
1.0m @ 1.34% Cu, 0.55 g/t Au and 10.5 g/t Ag from 1,011.0m
4.0m @ 1.74 g/t Au from 1,018.0m
1.0m @ 1.15% Cu from 1,026.0m
0.2m @ 1.84% Cu, 0.53 g/t Au and 2.6 g/t Ag from 1,029.5m
13.08m @ 0.62% Cu, 0.13 g/t Au and 1.43 g/t Ag from 1,055 – 1,068.08m
including:
1.0m @ 1.32% Cu from 1,056.0m
0.32m @ 5.07% Cu and 0.78 g/t Au from 1,063.68m
5.0m @ 0.64% Cu and 0.18 g/t Au from 1,096 – 1,105m
including:
1.0m @ 2.18%, 0.69 g/t Au and 2.47 g/t Ag from 1,097m
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41.55m @ 0.22% Cu from 1,116.45- 1,158m
including:
0.6m @ 1.14% Cu from 1,148.0m
22m @ 0.16% Cu from 1,182 – 1,204m
4m @ 0.39% Cu from 1,210 – 1,214m
8.12m @ 0.16% Cu from 1,228 – 1,236.12m
37m @ 0.22% Cu from 1,243 – 1,281m
including:
0.17m @ 2.35% Cu and 0.56 g/t Au from 1,243.0m
End of Hole (EOH) @ 1,335.7m
A total of 200.75m of mineralised intersections.
As with HWDD05 the wedge hole has shown mineralisation, brecciation and alteration styles in some of the mafic units are
typical of an IOCG deposit (Figure 4) and that the structural history of the veins reflects the “big picture” structural evolution
of the Olympic Dam Breccia Complex (ODBC) with early shear and late dilational characteristics.
HWDD05W1 also showed a strong spatial correlation between iron (Fe), copper (Cu), gold (Au) and silver (Ag) and a
reasonably good correlation with uranium (U) which are key characteristics of the ODBC.
Figure 4: Granite (hematised) with cross-cutting, quartz + sericite altered intrusives. Chalcopyrite mineralisation at 1,063.68m
assayed 5.07% Cu and 0.78 g/t Au over 0.32m.
Drill hole HWDD06 (Figure 5) commenced and was at a depth of approximately 800m by 30 June 2022 with an estimated
target depth to basement of 990m. HWDD06 commenced at a dip of 70° and was progressively shallowed to aim at a final
hole dip of 60° (Table 3) to gain a better cross-sectional result. It was expected that the basement would be encountered at
a downhole depth of 990m.
Hole_ID
HWDD06
HWDD06
HWDD06
HWDD06
Depth (m)
0
500
1000
1500
Dip
-70
-70
-65
-60
Azimuth_TN
80
80
85
90
Azimuth_Mag
73
73
78
83
Table 3: Proposed drilling parameters for HWDD06.
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Figure 5: Location of HWDD06 drill hole with residual gravity contours on enhanced Total Magnetic Intensity (TMI) colour
map and proximity to Oak Dam West deposit.
The Company identified the Bluebush Fault as a high value exploration target and part of the Cohiba strategy for the continual
enhancement of the prospectivity of the Horse Well Project area. Early-stage drilling of previously identified geophysical
targets resulted in the discovery of significant and persistent copper anomalism at Horse Well, confirming the location does
have potential for a substantial copper deposit. A review of holes HWDD04, HWDD05, and HWDD05W1 was undertaken
and this highlighted an exciting correlation of oxidised grey haematite-chalcopyrite as both clasts and matrix in lenses of
breccia within the newly interpreted ‘Bluebush Fault’ in HWDD05 (Figure 6). Grey haematite-chalcopyrite is rare as an
alteration type, normally being confined to close proximity to ore zones within known IOCG deposits, and the association
with a distinct structure provided a further tangible target for drilling, such as that for HWDD07.
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Review of operations
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Figure 6: Proposed Location of HWDD07 relative to Interpreted path of Bluebush Fault at 1180m RL.
Drill hole HWDD07 was proposed for the Horse Well area to test the inferred continuation of the Bluebush Fault which was
discovered following a detailed review of lithologies and geochemical signatures within holes HWDD04, HWDD05 and
HWDD05W1.
The plan for HWDD07 is to target the Bluebush Fault to the south from a collar position on the HWDD04, HWDD05, and
HWDD05W1 drill pad. A successful intercept will add ~250m of verified strike length to the Bluebush Fault and give more
confidence in its overall strike, which is required to successfully hit the fault in any future wider spaced step out drilling.
Cohiba believes that the Bluebush Fault contains the right mix of alteration, elevated copper mineralisation in the form of
chalcopyrite veins associated with spotty gold, textural preparation by brecciation, and a likely dilational orientated structure.
The only ingredient missing is ‘scale’, and with +2km of potential strike length (Figure 7) there is ample scope to satisfy this
component.
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Review of operations
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Figure 7: Plan View of Horse Well Project tenements overlaying a Vertical Gradient Magnetics map. The Bluebush Fault is
marked with a strike length of 2 kilometres. This figure shows potential bounding, north-westerly trending structures,
consistent with the Bluebush Fault being a length-limited, offset-limited dilational crack.
Pernatty “C” Area
Two holes (PSDDH001 and PSDDH002) were drilled to test for possible Zambian Copperbelt (ZCB) style and Iron Oxide –
Copper – Gold (IOCG) mineralisation. The drill holes were situated over separate target zones which had been identified
from historical geophysical investigations.
PSDDH001 (Figure 6) commenced on 28 October 2021 and was completed on 15 December 2021 for a total hole length of
1,110.5m at a final azimuth (MN) of 253.8° and a dip of 65.9°. During this period major rainfall events resulted in widespread
flooding and an inability to access the drill rig from 10 November 2021 to 1 December 2021 inclusive (22 days).
PSDDH002 (Figure 6) commenced on 6 January 2022 (following drillers break) and was completed on 1 March 2022 for a
total hole length of 998.8 m at a final azimuth of 52.8° and a dip of 68.2°. During this period major rainfall events resulted in
widespread flooding and the inability to access the drill rig from 21 January 2022 to 15 February 2022 inclusive (26 days).
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Review of operations
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Figure 6: Proposed drill hole locations at Pernatty C.
The collar locations for PSDDH001 and PSDDH002 are outlined in Table 4:
Hole ID
Easting
Northing
PSDDH001 718217
PSDDH002 718345
6512010
6511987
Azimuth
MN (Final)
253.8°
52.8°
Dip (final)
Collar RL
65.9°
62.8°
133m
133m
Hole Depth
(m)
1,110.5
998.8
Table 4: Collar location and depth for drill holes PSDDH001 and PSDDH002.
Logging of the drill core identified some minor mineralisation within a quartz-pyrite-chalcopyrite-haematite breccia (Figure 8)
which will be followed up with assaying.
Figure 8: PSDDH001 at 876m showing minor mineralisation within a quartz-pyrite-chalcopyrite-haematite breccia.
Logging of the drill core identified rare clasts of massive grey hematite which are known to occur in the sedimentary units
overlying IOCG systems. These clasts can be transported some distance but their presence is an encouraging sign.
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Logging also identified some instances of brown earthy haematite matrix fault breccia with clasts of Wallaroo Group
sediments and substantial sericite alteration (Figure 9). These indicate faulting and a highly oxidised, slightly acidic fluid
which can have an association with IOCG style alteration.
Figure 9: PSDDH002 at 938.3m showing earthy brown haematite infill minor breccia fault, with sericitic alteration of
surrounding rocks.
Western Australia Tenements
Pyramid Lake Update (E74/594)
Cohiba Minerals Limited holds (100%) exploration licence E74/594, which covers all of Pyramid Lake in south-western
Western Australia, for a total of 11,266 hectares or 112.66 km2. Pyramid Lake itself is a salt-lake covering 6,632 hectares
located 115 kilometres northwest of the town of Esperance on the northern limit of the agricultural area (Figure 10).
Figure 10: Location of Cohiba’s Pyramid Lake Exploration Licence (from Hydrominex 2018).
The E74/594 property (Figure 4) is located 115 km northwest of Esperance (150 km by road) and is accessed from the
highway linking Ravensthorpe and Esperance.
All activities on site were communicated to (via an Activity Report) and approved by the Esperance Tjaltjraak Native Title
Aboriginal Corporation (PBC).
Queensland Tenements
Wee MacGregor Project
The Wee MacGregor group comprises three granted mining licences, ML 2504, ML 2773, and ML 90098. These licences
are located approximately 60km southeast of Mt. Isa with access via the sealed Barkly Highway and the unsealed Fountain
Springs Road.
The Company maintained the tenements in good standing and met the expenditure requirements to secure an 80% stake in
the tenements (20% being held by Cyclone Metals Limited).
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Cohiba Minerals Limited
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30 June 2022
Queensland Exploration Licences
The Company holds various exploration licences through its wholly owned subsidiary Cobalt X Pty Ltd. As at the date of this
report the Company is the holder of the following mineral exploration licences pursuant to the Mineral Resources Act 1989
(QLD):
• exploration licence EPM26377 (Mt Gordon Mine Area 1),
• exploration licence EPM26376 (Mt Gordon Mine Area 2),
• exploration licence EPM26380 (Success Mine Area 1); and,
• exploration licence EPM26379 (Mt Cobalt Mine Area).
Cobalt X also held various contractual rights with third parties to facilitate the acquisition by it of additional mining and
exploration projects and related plant and equipment (Project Rights) including rights to negotiate for the acquisition of a
vat leach processing plant in the Mt. Isa region (referred to as the Lady Jenny processing plant). The nature and status of
these Project Rights has been described in detail in the Company’s Notice of General Meeting (Notice) dated 26 May 2017.
All of the Queensland Exploration Licences were maintained in good standing.
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Cohiba Minerals Limited
Directors' report
30 June 2022
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter
as the 'consolidated entity') consisting of Cohiba Minerals Limited (referred to hereafter as the 'Company' or 'parent entity')
and the entities it controlled at the end of, or during, the year ended 30 June 2022.
Directors
The following persons were Directors of Cohiba Minerals Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Mr Mordechai Benedikt (Executive Chairman)
Mr Andrew Graham (Executive Director)
Mr Nachum Labkowski (Non-Executive Director)
Principal activities
The principal activity of the consolidated entity during the year was the exploration for natural resources, including metals,
precious metals, lithium, cobalt and minerals. There have been no significant changes in the nature of those activities during
the period.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $2,827,947 (30 June 2021: $1,393,784).
Financial performance
During the year, loss before income taxes increased by $1,434,163 to $2,827,947 (30 June 2021: $1,393,784). This was
mainly due to the following:
●
●
Impairment of the carrying value of capitalised exploration and evaluation assets of $1,147,575 (2021: $0 impairment)
relating to the consolidated entity's exploration activities on the Warriner Creek Project.
Non-cash share based payment expense during the year of $426,260 (2021: $505,675)
Financial position
Net assets of the consolidated entity decreased slightly from $11,171,905 to $11,132,194.
Refer to the detailed review of operations preceding this report for further information on the Consolidated entity’s activities.
Significant changes in the state of affairs
●
During the financial year, the Company issued 236,197,555 Fully paid ordinary shares (Shares) for the conversion of
236,197,555 CHKOA listed options with an exercise price of $0.01 (1 cent) per option, raising $2,361,976 excluding
costs.
On 27 August 2021, the Company issued 14,000,000 unlisted options to consultants with each option being exercisable
at $0.02 (2 cents) on or before 18 December 2023.
On 17 December 2021, the Company issued 45,000,000 unlisted options to directors with each option being exercisable
at $0.04 (4 cents) on or before 17 December 2024.
●
●
Matters subsequent to the end of the financial year
On 15 September 2022, the Company announced that it had made the decision not to continue with the Farm-In Agreement
with Tigers Dominion Pty Ltd in relation to the Warriner Creek Project, having met its milestone obligations for the initial
stage. The Company sent a formal letter to Tigers Dominion Group outlining its decision not to progress with the Farm-In
Agreement. An impairment charge amounting to $1,147,575 has been recorded as at 30 June 2022 for all expenditure
relating to this farm-in agreement given the decision not to proceed to the next stage.
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Cohiba Minerals Limited
Directors' report
30 June 2022
Likely developments and expected results of operations
During the previous financial years, the Company has entered into agreements to acquire new projects and project rights
and the success of the Company will depend on exploration activities proposed to be carried out on the current projects
areas of interest which have been acquired or granted to the Consolidated entity.
The Company continues to review potential new opportunities, if the Directors are successful in acquiring new projects or
entering into a joint venture, it is expected that part of the funding held by the Company may be directed to the purchase of
that project and to the exploration and development plan for that project. It may be that additional cash will be required to
fund any of these events should they eventuate. In that case the Directors will be required to review the funding options
available to the Company.
Business risk management
The Company is committed to the effective management of risk to reduce uncertainty in the Company’s business outcomes
and to protect and enhance shareholder value. There are various risks that could have a material impact on the achievement
of the Company’s strategic objectives and future prospects.
Key risks and mitigation activities associated with the Company's objectives are set out below:
COVID-19 Impacts
The ongoing COVID-19 pandemic has had a significant impact on the global economy and the ability of businesses,
individuals and governments to operate. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict
the impact of the pandemic on the Company’s business (or on the operations of other businesses on which it relies), and
there is no guarantee that the Company’s efforts to address the adverse impacts of COVID-19 will be effective. The impact
to date has included periods of significant volatility in financial, commodities and other markets. This volatility, if it continues
could have an adverse impact on the Company’s condition and results of operations.
The pandemic may lead to delays or restrictions regarding land access and the Company’s ability to freely move people and
equipment to and from the Company’s exploration projects, leading to delays and cost increases.
There continues to be considerable uncertainty as to the duration and further impact of COVID-19, including (but not limited
to) government, regulatory or health authority actions, work stoppages, lockdowns, quarantines, and travel restrictions.
The impact of some or all of these factors could cause significant disruption to the Company’s operations and financial
performance. The Company continues to put in place mitigation strategies in relation to the COVID-19 pandemic and ensures
a COVID safe environment is carried out at all of its work sites.
Exploration risk
The Company’s projects are at various stages of exploration, and potential investors should understand that mineral
exploration is a high-risk undertaking. There can be no assurance that exploration of these projects, or any other tenements
that may be acquired in the future, will result in the discovery of an economic mineral deposit.
The future exploration activities of the Company may be affected by a range of factors including geological conditions,
limitations on activities due to seasonal weather patterns, unanticipated operational and technical difficulties, industrial and
environmental accidents, local title processes, changing government regulations and many other factors beyond the control
of the Company.
In addition, the tenements forming the projects of the Company may include various restrictions excluding, limiting or
imposing conditions upon the ability of the Company to conduct exploration activities. While the Company will formulate its
exploration plans to accommodate and work within such access restrictions, there is no guarantee that the Company will be
able to satisfy such conditions on commercially viable terms, or at all.
The Company uses a number of exploration techniques in order to reduce the level of exploration risks and continues to
explore new and innovative technologies through its day to day operations.
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Cohiba Minerals Limited
Directors' report
30 June 2022
Regulatory risk
The Company’s mining and exploration activities are dependent upon the maintenance (including renewal) of the tenements
in which the Company has or acquires an interest. Maintenance of the Company’s tenements is dependent on, among other
things, the Company’s ability to meet the licence conditions imposed by relevant authorities. Although the Company has no
reason to think that the tenements in which it currently has an interest will not be renewed, there is no assurance that such
renewals will be given as a matter of course and there is no assurance that new conditions will not be imposed by the relevant
authority or whether the Company will be able to meet the conditions of renewal on commercially reasonable terms, if at all.
The Company works with local government and mining departments to ensure it meets the required level of reporting
requirements and to reduce any potential for breach of regulatory requirements.
Future funding risk
The Company has no operating revenue and is unlikely to generate any operating revenue in the foreseeable future.
Exploration and development costs and pursuit of its business plan will use funds from the Company's current cash reserves
and the amount raised under the Equity Offer.
The development of one or more of its projects may require the Company to raise capital in excess of the funds proposed to
be raised under the Equity Offer.
Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the then market
price (or Offer Price) or may involve restrictive covenants which limit the Company's operations and business strategy. Debt
financing, if available, may involve restrictions on financing and operating activities.
Although the Directors believe that additional capital can be obtained, no assurances can be made that appropriate capital
or funding, if and when needed, will be available on terms favourable to the Company or at all. If the Company is unable to
obtain additional financing as needed, it may be required to reduce the scope of its activities 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. The
Company’s funding requirements are reviewed on a regular basis in order to mitigate future funding risk.
Farm in and joint venture risk
The Company is party to joint venture arrangement in respect of its Olympic Domain Project. This joint venture arrangement
and other farm-in arrangements are subject to conditions and expenditure requirements for the Company to achieve certain
ownership percentage ownership of the relevant projects. The farm-in arrangements also give rise to joint ventures.
There is a risk that the Company will not meet the requirements (including in respect of expenditure) under the farm-in
arrangements or that, even if such requirements are met, a commercially viable resource will not be located on the project.
In addition, any joint venture arrangement will be subject to risks typically associated with arrangements of that kind, including
but not limited to that either party may seek to terminate or withdraw from the arrangement or fail to meet their obligations
thereunder. There is also the potential for disputes in respect of the obligations of the parties to the joint venture, as outlined
in Note 8 of this financial report.
Environmental regulation
The consolidated entity holds participating interests in a number of exploration tenements. The various authorities granting
such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions given to
it under those terms of the tenement. To the best of the Directors' knowledge, the Group has adequate systems in place to
ensure compliance with the requirements of all environmental legislation described above and are not aware of any breach
of those requirements during the financial year and up to the date of the Directors' report.
Information on Directors
Name:
Title:
Experience and expertise:
Mr Mordechai Benedikt
Executive Chairman
Mr Benedikt is an experienced businessman with an extensive background in food
imports for over 12 years. He is very active in export trade from Australia to Asia,
building a vast network overseas. More recently he has been actively involved in
commercial property and substantial investments in the public sector. Mr Benedikt
controls Jascot Rise Pty Ltd, a substantial shareholder in the Company.
None
Other current directorships:
Former directorships (last 3 years): Abilene Oil and Gas Limited (ASX: ABL) – Company delisted in October 2021
133,323,264 fully paid ordinary shares
Interests in shares:
37,000,000 unlisted options
Interests in options:
16
Cohiba Minerals Limited
Directors' report
30 June 2022
Name:
Title:
Experience and expertise:
Mr Nachum Labkowski
Non-Executive Director
Mr Labkowski is the CEO and principal investor in Halevi Enterprises, a private equity
firm. Halevi Enterprises with, Mr Labkowski’s leadership, currently holds equity in over
30 private companies, which invest in real estate worldwide. Mr Labkowski’s unique
approach to investing has provided significant returns to those companies he has
invested in to date.
None
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
16,642,125 fully paid ordinary shares
34,000,000 unquoted options
Name:
Title:
Experience and expertise:
Mr Andrew Graham
Chief Executive Officer and Executive Director (appointed 17 June 2020)
Mr Graham has 30 years of technical, operational and managerial experience in the
resources sector with both private and public companies in Australia and overseas. He
has founded multiple companies in the mining, mineral processing, consulting and
environmental sectors and has a passion for business building through strong
leadership, technical excellence and strategic focus. Mr Graham has built a global
network of investors, innovators and technical and commercial specialists. He has been
involved in raising hundreds of millions of investment capital, building large teams of
specialists and developing numerous projects from greenfields exploration to operating
mines. He has qualifications in applied geology, economic geology, management,
training and quarry management and is a member of the Australasian Institute of Mining
and Metallurgy and the Institute of Quarrying.
None
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
3,000,000 Fully paid ordinary shares
28,000,000 unquoted options
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Mr Justin Mouchacca, CA FGIA
Mr Mouchacca is a Chartered Accountant and Fellow of the Governance Institute of Australia with over 15 years' experience
in public company responsibilities including statutory, corporate governance and financial reporting requirements. Since July
2019, Mr Mouchacca has been principal of JM Corporate Services and has been appointed Company Secretary and
Financial Officer for a number of entities listed on the ASX and unlisted public companies.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2022, and
the number of meetings attended by each Director were:
Mordechai Benedikt
Nachum Labkowski
Andrew Graham
Held: represents the number of meetings held during the time the Director held office.
Full Board
Attended
Held
4
4
4
4
4
4
17
Cohiba Minerals Limited
Directors' report
30 June 2022
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all Directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the company depends on the quality of its directors and executives. The remuneration philosophy is to attract,
motivate and retain high performance and high quality personnel.
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the company.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having financial performance as a core component of plan design
focusing on sustained growth in shareholder wealth and growth in share price and delivering constant or increasing
return on assets as well as focusing the executive on key non-financial drivers of value
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Non-executive Directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board as a whole. The chairman's fees are determined independently to
the fees of other non-executive directors based on comparative roles in the external market. The chairman is not present at
any discussions relating to the determination of his own remuneration.
ASX listing rules require the aggregate non-executive directors remuneration be determined periodically by a general
meeting. The most recent determination was at a General Meeting of shareholders held on 16 May 2012, where the
shareholders approved an aggregate remuneration of $250,000.
Executive remuneration
The company aims to reward executives with a level and mix of remuneration based on their position and responsibility,
which has both fixed and variable components.
The executive remuneration and reward framework generally has two components:
●
●
base pay and non-monetary benefits
share-based payments
18
Cohiba Minerals Limited
Directors' report
30 June 2022
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, and non-monetary benefits, are reviewed annually by the Board,
predominantly non-executive Director, based on individual and business unit performance, the overall performance of the
consolidated entity and comparable market remunerations.
The long-term incentives ('LTI') include share-based payments. During the 2022 financial year, options were issued to
directors which formed part of their remuneration.
The Company did not use any external remuneration consultants during the financial year.
Consolidated entity performance and link to remuneration
The remuneration of directors and executives are not linked to the performance, share price or earnings of the consolidated
entity.
Voting and comments made at the company's 2021 Annual General Meeting ('AGM')
At the 2021 AGM, 96.4% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2021. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following Directors of Cohiba Minerals Limited:
●
●
●
Mr Mordechai Benedikt (Executive Chairman)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Executive Director)
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
60,000
228,000
145,045
433,045
-
-
-
-
-
-
-
-
-
-
-
-
-
68,167
128,167
-
-
-
68,167
68,167
204,501
296,167
213,212
637,546
2022
Non-Executive Directors:
Nachum Labkowski
Executive Directors:
Mordechai Benedikt
Andrew Graham
No termination benefits were paid to the resigning directors.
During the financial year a total of $133,045 of Mr Graham's Executive Director's fees have been capitalised to exploration
expenditure.
19
Cohiba Minerals Limited
Directors' report
30 June 2022
2021
Non-Executive Directors:
Nachum Labkowski
Executive Directors:
Mordechai Benedikt
Andrew Graham
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
87,999
180,000
123,750
391,749
-
-
-
-
-
-
-
-
-
-
-
-
-
185,508
273,507
-
-
-
236,358
83,808
505,674
416,358
207,558
897,423
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Directors:
Mordechai Benedikt
Andrew Graham
Nachum Labkowski
Fixed remuneration
2021
2022
At risk - STI
At risk - LTI
2022
2021
2022
2021
77%
68%
47%
43%
60%
32%
-
-
-
-
-
-
23%
32%
53%
57%
40%
68%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Mordechai Benedikt
Executive Director
20 May 2016
Contract is for a period of 2 years from the commencement date
Mr Benedikt was remunerated at $190,000 per annum.
The contract may be terminated at any time with 3 months' written notice being provided
by either the Company or Mr Benedikt. Upon expiration of the term the contract may
be renewed by mutual agreement.
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Andrew Graham
Executive Director
24 February 2020
This contract will continue from commencement date until terminated.
Mr Graham will be remunerated at $15,000 per month.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of Shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year
ended 30 June 2022.
20
Cohiba Minerals Limited
Directors' report
30 June 2022
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
26/11/2021
18/12/2020
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
Subject to vesting conditions 17/12/2024
Subject to vesting conditions 01/12/2023
$0.040
$0.020
$0.004
$0.017
Options granted carry no dividend or voting rights.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2022 are summarised below:
2022
$
2021
$
2020
$
2019
$
2018
$
Revenue
Net profit/(loss) before income tax
Net profit/(loss) after income tax
12,331
(2,827,947)
(2,827,947)
31,797
(1,393,784)
(1,393,784)
22,349
(1,288,926)
(1,288,926)
22,243
(1,096,712)
(1,096,712)
14,323
(1,474,836)
(1,474,836)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at start of financial year ($)
Share price at end of financial year ($)
Basic earnings per share (cents per share)
0.016
0.007
(0.20)
0.008
0.016
(0.12)
0.011
0.008
(0.19)
0.007
0.011
(0.18)
0.013
0.007
(0.31)
2022
2021
2020
2019
2018
Additional disclosures relating to key management personnel
Share holding
The number of shares in the Company held during the financial year by each Director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions*
Balance at
the end of
the year
Other
Ordinary shares
Nachum Labkowski
Mordechai Benedikt
Andrew Graham
13,181,750
105,463,737
-
118,645,487
-
3,460,375
- 27,859,527
-
3,000,000
- 34,319,902
- 16,642,125
- 133,323,264
-
3,000,000
- 152,965,389
*
Relates to on-market purchases or participation in capital raisings (following receipt of shareholder approval) at arms-
length terms.
21
Cohiba Minerals Limited
Directors' report
30 June 2022
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
the start of
Balance at
the end of
the year
Granted as
remuneration
Disposed /
expired
Other*
the year
Options over ordinary shares
Nachum Labkowski
Mordechai Benedikt
Andrew Graham
22,460,375 15,000,000
49,859,527 15,000,000
16,000,000 15,000,000
88,319,902 45,000,000
-
-
-
-
(3,460,375) 34,000,000
(27,859,527) 37,000,000
(3,000,000) 28,000,000
(34,319,902) 99,000,000
*
Listed options exercised during the year.
The vesting status and conditions of the options noted above are as follows:
●
●
●
24,000,000 options have vested and are exercisable at $0.02 per option on or before 18 December 2023.
30,000,000 unlisted options exercisable at $0.02 per option on or before 18 December 2023 are subject to satisfaction
of vesting conditions. The options will vest upon the Company announcing an independently verified JORC compliant
Inferred Mineral Resource of a minimum of 2 million tonnes at a copper equivalent (CuEq) grade of not less than 0.5%
Cu for at least 10,000 tonnes of copper metal equivalency across any of the Company’s tenements.
45,000,000 unlisted options are exercisable at $0.04 per option and will vest subject to the Company’s average market
capitalisation over a period of 7 consecutive Trading Days (calculated on the basis of the ASX closing share price on
each Trading Day) meeting or exceeding $200 million.
Loans to key management personnel and their related parties
There were no loans to Key Management Personnel at any time during the financial year (2021: Nil).
Other transactions with key management personnel and their related parties
There were no transactions with key management personnel and their related parties.
Andrew Graham receives his Chief Executive Officer and Executive Director fees through an associated entity, Mineral
Strategies Pty Ltd.
There were no other transactions with key management personnel and their related parties.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Cohiba Minerals Limited under option at the date of this report are as follows:
Grant date
12 December 2020
27 August 2021
17 December 2021
Expiry date
18 December 2023
18 December 2023
17 December 2024
Exercise
price
Number
under option
$0.02 54,000,000
$0.02 14,000,000
$0.04 45,000,000
113,000,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
22
Cohiba Minerals Limited
Directors' report
30 June 2022
Shares issued on the exercise of options
The following ordinary shares of Cohiba Minerals Limited were issued during the year ended 30 June 2022 and up to the
date of this report on the exercise of options granted:
Date options exercised
10 August 2021
21 February 2022
28 February 2022
3 March 2022
21 March 2022
5 April 2022
11 April 2022
20 April 2022
27 April 2022
4 May 2022
11 May 2022
18 May 2022
24 May 2022
Exercise
price
Number of
shares issued
$0.01
16,667
$0.01
333,100
$0.01
300,000
$0.01
118,000
$0.01
750,000
5,425,000
$0.01
$0.01 34,301,882
$0.01 26,836,468
$0.01 17,024,760
$0.01 20,283,780
$0.01 20,389,750
$0.01 11,577,093
$0.01 98,841,055
236,197,555
The options were granted on various dates.
A total of 112,722,389 CHKOA listed options expired unexercised on 22 May 2022.
Indemnity and insurance of officers
The consolidated entity has agreed to indemnify all the directors of the consolidated entity for any liabilities to another person
(other than the consolidated entity or related body corporate) that may arise from their position as directors of the consolidated
entity, except where the liability arises out of conduct involving a lack of good faith.
During the financial year, the consolidated entity paid a premium in respect of a contract to insure the directors and executives
of the consolidated entity against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Consolidated entity has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the Consolidated entity or any related entity against a liability incurred by the auditor.
During the financial year, the Consolidated entity has not paid a premium in respect of a contract to insure the auditor of the
Consolidated entity or any related entity.
Proceedings on behalf of the consolidated entity
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the consolidated entity, or to intervene in any proceedings to which the consolidated entity is a party for the purpose of
taking responsibility on behalf of the consolidated entity for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
William Buck Audit (Vic) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
23
Cohiba Minerals Limited
Directors' report
30 June 2022
Rounding of amounts
Cohiba Minerals Limited is a type of Company that is referred to in ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been
rounded to the nearest dollar.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mordechai Benedikt
Executive Chairman
30 September 2022
24
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF COHIBA MINERALS
LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022 there have
been:
— No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— No contraventions of any applicable code of professional conduct in relation to the audit.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
N. S. Benbow
Director
Melbourne, 30th September 2022
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Cohiba Minerals Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Income
Interest income
Government grant income
Expenses
Employment expenses
Corporate expenses
Impairment of exploration and evaluation costs
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Cohiba Minerals Limited
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year attributable to the owners of Cohiba
Minerals Limited
Consolidated
Note
2022
$
2021
$
12,331
-
12,331
21,797
10,000
31,797
5
8
(736,310)
(956,393)
(1,147,575)
(798,162)
(627,419)
-
(2,827,947)
(1,393,784)
-
-
(2,827,947)
(1,393,784)
-
-
(2,827,947)
(1,393,784)
Cents
Cents
Basic earnings per share
Diluted earnings per share
22
22
(0.198)
(0.198)
(0.116)
(0.116)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
26
Cohiba Minerals Limited
Statement of financial position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Other receivables
Prepayments
Total current assets
Non-current assets
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payments reserve
Accumulated losses
Total equity
Consolidated
Note
2022
$
2021
$
6
7
8
9
3,462,634
176,858
18,882
3,658,374
6,499,541
67,693
34,630
6,601,864
8,427,436
8,427,436
4,637,754
4,637,754
12,085,810 11,239,618
953,616
953,616
67,713
67,713
953,616
67,713
11,132,194 11,171,905
10
21,673,474 19,235,198
581,975
(8,645,268)
931,935
(11,473,215)
11,132,194 11,171,905
The above statement of financial position should be read in conjunction with the accompanying notes
27
Cohiba Minerals Limited
Statement of changes in equity
For the year ended 30 June 2022
Consolidated
Issued
capital
$
Reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2020
11,016,910
190,750
(7,251,484)
3,956,176
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
-
-
(1,393,784)
-
(1,393,784)
-
(1,393,784)
(1,393,784)
Issue of ordinary shares, net of transaction costs
Issue listed options
Exercise of options
Vesting of share-based-payments
Transfer from share based payment reserve following exercise
of options
7,807,231
6,690
289,917
-
-
-
-
505,675
114,450
(114,450)
-
-
-
-
-
7,807,231
6,690
289,917
505,675
-
Balance at 30 June 2021
19,235,198
581,975
(8,645,268) 11,171,905
Consolidated
Balance at 1 July 2021
Issued
capital
$
Reserve
$
Accumulated
losses
$
Total equity
$
19,235,198
581,975
(8,645,268) 11,171,905
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
-
-
(2,827,947)
-
(2,827,947)
-
(2,827,947)
(2,827,947)
Exercise of options
Vesting of share-based-payments
Transfer from share based payment reserve following exercise
of options
2,361,976
-
-
426,260
76,300
(76,300)
-
-
-
2,361,976
426,260
-
Balance at 30 June 2022
21,673,474
931,935
(11,473,215) 11,132,194
The above statement of changes in equity should be read in conjunction with the accompanying notes
28
Cohiba Minerals Limited
Statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers & employees
Interest received
Government grants received
Consolidated
Note
2022
$
2021
$
(1,156,167)
12,330
-
(927,579)
21,797
10,000
Net cash used in operating activities
21
(1,143,837)
(895,782)
Cash flows from investing activities
Payments for exploration and evaluation costs
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercise of options
Proceeds from issue of options
Payments for capital raising costs
Repayment of borrowings
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(4,255,046)
(1,652,812)
(4,255,046)
(1,652,812)
-
2,361,976
-
-
-
7,908,830
289,917
6,690
(51,499)
(10,088)
2,361,976
8,143,850
(3,036,907)
6,499,541
5,595,256
904,285
Cash and cash equivalents at the end of the financial year
6
3,462,634
6,499,541
The above statement of cash flows should be read in conjunction with the accompanying notes
29
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 1. General information
The financial statements cover Cohiba Minerals Limited as a consolidated entity consisting of Cohiba Minerals Limited and
the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which
is Cohiba Minerals Limited's functional and presentation currency.
Cohiba Minerals Limited is a listed public Company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 21, 459 Collins Street
Melbourne, VIC 3000
Ph: (03) 8630 3321
A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 September 2022. The
Directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business.
For the year ended 30 June 2022, the Company incurred a net loss of $2,827,947, net cash outflows from operating activities
of $1,143,836 and negative cashflows from investing activities of $4,255,046 and had a cash balance as at 30 June 2022
of $3,462,634. The Directors have assessed that these conditions indicate that a material uncertainty exists that may cast
significant doubt on the entity’s ability to continue as a going concern, and therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of business.
Notwithstanding the above, the Directors determined that the use of the going concern basis of accounting is appropriate in
preparing the financial report. The assessment of the going concern assumption is based on the group’s cash flow projections
and application of a number of judgements and estimates, resulting in the conclusion of a range of reasonably possible
scenarios. Included in the Directors going concern cash flow assessment is that sufficient funds can be secured if required
by a combination of capital raisings, deferment of forecast payments for exploration and evaluation activities and the
expected receipt of funds from Olympic Domain Pty Ltd as outlined in Note 8.
Accordingly, the financial report has been prepared on the basis that the Group can continue normal business activities and
meet its commitments as and when they fall due, and the realisation of assets and liabilities in the ordinary course of business.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for the following:
●
Investments in preference shares, which are measured at fair value.
30
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 18.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Cohiba Minerals Limited
('Company' or 'parent entity') as at 30 June 2022 and the results of all subsidiaries for the year then ended. Cohiba Minerals
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Cohiba Minerals Limited's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
Revenue recognition
The consolidated entity recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method.
Accounting policy for Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an
asset, it is recognised as income in equal amounts over the expected useful life of the related asset.
31
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
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. The consolidated entity has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial
statements under the appropriate classifications.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2022. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
32
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Share-based payment transactions
The Company measures the cost of equity-settled transactions with employees, consultants and suppliers by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black
Scholes model taking into account the terms and conditions upon which the instruments were granted. A significant
judgement comes from the expected price volatility of the underlying share. The accounting estimates and assumptions
relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity.
During the previous financial year, the Company issued options with non-market based vesting conditions. The options have
been accounted for on a pro rata basis over the expected vesting period with $169,500 of the total expense ($508,500)
recorded in the current financial year.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and carried forward tax losses only if the
consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences
and carry forward tax losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Impairment of exploration and evaluation costs
The consolidated entity assesses impairment of exploration and evaluation costs at each reporting date by evaluating
conditions specific to Cohiba Minerals and to the particular asset that may lead to impairment. If an impairment trigger exists,
the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations,
which incorporate a number of key estimates and assumptions.
At 30 June 2022, the consolidated entity impaired the carrying value of its exploration and evaluation costs by $1,147,575
(2021: $nil impairment).
Note 4. Operating segments
Identification of reportable operating segments
The Consolidated entity has identified its operating segments based on the investment decisions of the board and used by
the chief operating decision makers in assessing performance and in determining the allocation of resources. The
Consolidated entity operates in one segment being the evaluation and exploration of resources in the Oceania region.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
33
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 5. Employment expenses
Director fees
Superannuation expense
Share based payment expense
Note 6. Current assets - Cash and cash equivalents
Cash at bank
Consolidated
2022
$
2021
$
300,000
10,050
426,260
287,499
4,988
505,675
736,310
798,162
Consolidated
2022
$
2021
$
3,462,634
6,499,541
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 7. Current assets - Other receivables
Trade receivables
GST receivable
Other receivables
Consolidated
2022
$
2021
$
-
176,858
-
43,250
19,023
5,420
176,858
67,693
Accounting policy for other receivables
Other receivables are measured at amortised cost using the effective interest method, less any provision for impairment.
Impairment
Allowances for impairment are recognised using an 'expected credit loss' ('ECL') model. Impairment is measured using a 12-
month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted.
Note 8. Non-current assets - exploration and evaluation
Exploration and evaluation assets
Consolidated
2022
$
2021
$
8,427,436
4,637,754
34
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 8. Non-current assets - exploration and evaluation (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2020
Expenditure capitalised during the year
Balance at 30 June 2021
Expenditure capitalised during the year
Impairment of capitalised exploration and evaluation assets*
Balance at 30 June 2022
Capitalised
exploration
and
evaluation
expenditure
$
Total
$
2,990,360
1,647,394
2,990,360
1,647,394
4,637,754
4,937,257
(1,147,575)
4,637,754
4,937,257
(1,147,575)
8,427,436
8,427,436
*
All expenditure impaired during as at 30 June 2022 relates to the Warriner Creek farm-in agreement.
Olympic Domain Farm-in Agreement
On 7 March 2018 the Company entered into a Farm-in Agreement with Olympic Domain Pty Ltd A.C.N. 115 759 245 (‘OD’ )
for a proposed joint venture in respect of seven distinct exploration tenements located in South Australia (Farm In
Agreement). The Farm In Agreement provided that the Company will be entitled to form a joint venture upon achievement
of the following Stages referred to below-.
The capitalised words “Tenements”, “Expenditure” and “Exploration” have the meaning attributed to each of them,
respectively, by the Farm In Agreement.
●
●
●
Stage 1 required a minimum expenditure of $500,000 (Minimum Expenditure) within twelve months of the
commencement of the Farm-in Agreement and a maximum of $100,000 as reimbursement to OD in connection with
the development of the Tenements prior to the commencement of the Farm In Agreement (the previous development).
Following completion of the Stage 1 Expenditure the Company would thereby become entitled to acquire a 30% interest
in the Tenements;
Stage 2 required aggregate Minimum Expenditure of $1,000,000 within twenty-four months of the commencement of
the Farm-in Agreement, and a maximum of $100,000 as reimbursement to OD in connection with the previous
development. Following completion of the Stage 2 Expenditure the Company would thereby become entitled to acquire
a further 21% interest in the Tenements; and
Stage 3 requires aggregate Minimum Expenditure of $1,500,000 within thirty-six months of the commencement of the
Farm-in Agreement. Following completion of the Stage 3 Expenditure the Company would thereby become entitled to
acquire a further 29% interest in the Tenements.
Stage 1 was completed in the 2020 Financial Year, and on 5 May 2020 the Company announced that it had received
confirmation from OD that Stage 2 had been achieved. On 2 July 2020 the Company announced that the Deputy Executive
Director, Mineral Resources SA had informed the Company of the approval and subsequent transfer of 51% ownership of
the Tenements to the Company.
On 16 September 2020, the Company announced that it had notified OD that it has exceeded the $1.5 million expenditure
requirement to secure an 80% ownership in the Tenements and is awaiting final acknowledgement from OD. OD refused to
acknowledge the Company’s claim for the Stage 3 earn-in and the two parties entered a dispute. On 25 March 2021, the
Company announced that it had entered into a Deed of Settlement and Release on 24 March 2021 with OD in relation to the
dispute (Deed) and the Company’s 80% interest would be registered. Olympic Domain was required per the Deed of
Settlement to meet 20% of the eligible ongoing Expenditure on the Tenements back-dated to 15 January 2021.
35
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 8. Non-current assets - exploration and evaluation (continued)
As at 30 June 2022, the Company owned an 80% interest in the Tenements, following achieving its earn-in stages during
previous financial periods.
In accordance with the Deed as holder of the remaining 20% interest in the Tenements, OD was required to contribute 20%
of all Expenditure concerning the Exploration, subject to such Expenditure being incurred after 8.59 am on 15 January 2021.
Since entry into the Deed, the Company has not received timely payment of the 20% of the eligible ongoing Expenditure
incurred since 15 January 2021 to be reimbursed by OD pursuant to the Deed. As at 30 June 2022, the Company had a total
amount of $535,935 receivable from OD for Expenditure concerning the Tenements which is currently recognised as
capitalised expenditure in accordance with AASB 6 Exploration for and Evaluation of Mineral Resources.
Since 30 June 2022 the Company has not received payment for any of the outstanding invoices. During the year, the
Company demanded payment for outstanding invoices as they became overdue. To enforce its rights pursuant to the Farm
In Agreement and the Deed, on 28 January 2022 the Company served a Creditor’s Statutory Demand against OD concerning
an Outstanding Tax Invoice (Creditor’s Statutory Demand). OD has brought proceedings in the Supreme Court of Victoria
(S ECI 2022 00479) seeking to set aside the Creditor’s Statutory Demand by undermining the Outstanding Tax Invoice
(Proceeding). The Company is opposing the Proceeding and continues to seek full compliance by OD of all obligations
owed by OD pursuant to the Farm In Agreement and Deed.
Warriner Creek Project Farm-in
During the financial year, the Company entered into a Farm-in Agreement in relation to the Warriner Creek Project whereby
the Company could acquire up to a 51% interest in a highly Strategic IOCG target in the Gawler Craton. During the year the
Company conducted exploration activities and drilling activities in relation to the project and spent a total of $1,147,475.
On 15 September 2022 and following a review of exploration results received from the assay laboratory, the Directors decided
not to proceed with any further exploration activities on this project and all costs to 30 June 2022 have been impaired
accordingly. Refer to Note 20 for further details.
There were no other exploration and evaluation costs required to be impaired as at 30 June 2022 following a review of the
carrying amounts, other than noted above.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest or its sale. Alternatively, exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure
incurred thereon is written off in the year in which the decision is made.
Note 9. Current liabilities - trade and other payables
Trade payables
Accrued expenses
Consolidated
2022
$
2021
$
885,458
68,158
45,541
22,172
953,616
67,713
Refer to note 12 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
36
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 10. Equity - issued capital
Ordinary shares - fully paid
Investor options over ordinary shares
Movements in ordinary share capital
2022
Shares
1,627,660,808
-
Consolidated
2021
Shares
2022
$
2021
$
1,391,463,253 21,673,474 19,085,955
149,243
348,919,944
-
1,627,660,808
1,740,383,197 21,673,474 19,235,198
Details
Date
Shares
Issue price
$
Balance
CHKOA option conversion
CHKOA option conversion
Share issue for capital raising
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Share issue for capital raising
Share issue for capital raising
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Share Purchase Plan shares issued
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Transfer from option reserve following exercise
of options
Less: capital raising costs
Balance
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Transfer from option reserve following exercise
of options
Transfer of listed option amount following lapse
of options
1 July 2020
20 August 2020
28 August 2020
2 September 2020
22 September 2020
7 October 2020
26 October 2020
25 November 2020
1 December 2020
4 December 2020
9 December 2020
9 December 2020
17 December 2020
18 December 2020
12 January 2021
18 January 2021
22 January 2021
3 February 2021
10 February 2021
10 March 2021
6 April 2021
30 June 2021
10 August 2021
21 February 2022
28 February 2022
3 March 2022
21 March 2022
5 April 2022
11 April 2022
20 April 2022
27 April 2022
4 May 2022
11 May 2022
18 May 2022
24 May 2022
890,702,261
795,000
312,500
143,125,000
212,500
102,461
75,000
155,476
15,000,000
3,125,000
143,222
250,000
400,000
310,519,276
2,417,780
350,000
20,650,000
750,000
25,000
1,352,777
1,000,000
10,874,357
7,950
3,125
2,290,000
2,125
1,025
750
1,555
240,000
50,000
1,432
2,500
4,000
5,278,828
24,178
3,500
206,500
7,500
250
13,528
10,000
$0.01
$0.01
$0.016
$0.01
$0.01
$0.01
$0.01
$0.016
$0.016
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
-
-
-
-
114,450
(51,598)
1,391,463,253
16,667
333,100
300,000
118,000
750,000
5,425,000
34,301,882
26,836,468
17,024,760
20,283,780
20,389,750
11,577,093
98,841,055
-
-
19,085,955
168
3,331
3,000
1,180
7,500
54,250
343,017
268,365
170,248
202,838
203,897
115,771
988,411
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
-
-
76,300
149,243
Balance
30 June 2022
1,627,660,808
21,673,474
37
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 10. Equity - issued capital (continued)
Movements in options
Details
Balance
Issue of share options
Issue of share options
Issue of share options
Issue of share options
Issue of share options
CHKOA options converted during the year
Balance
Options expired during the year
CHKOA options converted during the year
Transfer to issued capital above
Date
Options
Issue price
$
1 July 2020
2 September 2020
1 December 2020
4 December 2020
4 December 2020
4 December 2020
30 June 2021
290,596,724
71,562,492
7,500,000
1,562,500
5,189,944
1,500,000
(28,991,716)
348,919,944
(112,722,389)
(236,197,555)
-
-
$0.001
-
$0.001
$0.001
-
142,553
-
-
-
5,190
1,500
-
149,243
-
-
(149,243)
-
-
-
Balance
30 June 2022
-
-
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current Company's share price at the time of the investment. The consolidated entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
The Company seeks to ratify its placement capacity at each Annual General Meeting and General Meeting.
The capital risk management policy remains unchanged from previous financial years.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Note 11. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
38
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 12. Financial instruments
Financial risk management objectives
The Consolidated entity's activities expose it to financial risks such as market risk (foreign currency risk and price risk) and
liquidity risk. The Consolidated entity's overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the Consolidated entity. The Consolidated
entity uses different methods to measure different types of risk to which it is exposed. These methods include maturity
analysis in the case of liquidity risk.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The Company was not subject to significant foreign
currency risk during the financial year.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
The Consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Consolidated entity’s short, medium and long-term funding and
liquidity management requirements. The Consolidated entity manages liquidity risk through capital raising activities, and
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Consolidated entity did not have any undrawn facilities at its disposal as at reporting date. Vigilant liquidity risk
management requires the Consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and
available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
As at year end all liabilities had maturities no greater than 60 days (2021: 60 days).
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
39
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 13. Key management personnel disclosures
Directors
The following persons were Directors of Cohiba Minerals Limited during the financial year:
Mr Mordechai Benedikt (Executive Director)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Chief Executive Officer and Executive
Director)
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Share-based payments
Note 14. Remuneration of auditors
Consolidated
2022
$
2021
$
433,045
204,501
391,749
505,674
637,546
897,423
During the financial year the following fees were paid or payable for services provided by William Buck, the auditor of the
Company:
Audit services - William Buck
Audit or review of the financial statements
Note 15. Contingent liabilities
There are no contingent liabilities as at the end of the financial year (2021: nil).
Note 16. Commitments
Consolidated
2022
$
2021
$
31,200
32,200
The Consolidated entity has to perform minimum exploration work and expend minimum amounts of money on its tenements.
The overall expenditure requirement tends to be limited in the normal course of the Consolidated entity's tenement portfolio
management through expenditure exemption approvals and expenditure reductions through relinquishment of parts of the
whole of tenements deemed on prospective. Should the Consolidated entity wish to preserve interest in its current tenements
the amount which may be required to be expended is as follows:
40
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 16. Commitments (continued)
Planned Exploration Expenditure
Within one year
One to five years
Total commitment
Consolidated
2022
$
2021
$
627,500
622,500
868,500
3,162,500
1,250,000
-
4,031,000
-
1,250,000
4,031,000
Within the mineral industry it is common practice for companies to farm-out, transfer or sell a portion of their exploration
rights to third parties or to relinquish some exploration and mining tenements altogether, and as a result obligations will be
significantly reduced or extinguished altogether. During prior years the Company concluded a number of farm-out
agreements which resulted in the Company only being responsible for a share of the work programs. The farm-in partners
also expended funds on the permits during the year which resulted in work programs for certain years being met.
Note 17. Related party transactions
Subsidiaries
Interests in subsidiaries are set out in note 19.
Key management personnel
Disclosures relating to key management personnel are set out in note 13 and the remuneration report included in the
Directors' report.
Andrew Graham receives his Chief Executive Officer and director fees through an associated entity, Mineral Strategies Pty
Ltd.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 18. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Parent
2022
$
2021
$
(2,823,037)
(1,393,784)
(2,823,037)
(1,393,784)
41
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 18. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share based payments options reserve
Accumulated losses
Total equity
Parent
2022
$
2021
$
3,658,274
7,556,592
10,217,898 11,286,326
(141,276)
67,713
(141,276)
67,713
20,602,565 19,235,198
581,975
(8,598,562)
1,008,235
(11,251,626)
10,359,174 11,218,611
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2022 (30 June 2021: nil).
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022 (30 June 2021: nil)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 (30 June 2021: nil)
Note 19. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 2:
Name
Charge Lithium Pty Ltd
Cobalt X Pty Ltd
Note 20. Events after the reporting period
Principal place of business /
Country of incorporation
Australia
Australia
Ownership interest
2021
2022
%
%
100%
100%
100%
100%
On 15 September 2022, the Company announced that it had made the decision not to continue with the Farm-In Agreement
with Tigers Dominion Pty Ltd in relation to the Warriner Creek Project, having met its milestone obligations for the initial
stage. The Company sent a formal letter to Tigers Dominion Group outlining its decision not to progress with the Farm-In
Agreement. An impairment charge amounting to $1,147,575 has been recorded as at 30 June 2022 for all expenditure
relating to this farm-in agreement given the decision not to proceed to the next stage.
No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
42
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 21. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(2,827,947)
(1,393,784)
Consolidated
2022
$
2021
$
Adjustments for:
Share-based payments
Impairment of exploration and evaluation assets
Change in operating assets and liabilities:
Decrease/ (increase) in prepayments
Decrease/ (increase) in trade and other receivables
Increase/ (decrease) in trade and other payables
Increase/ (decrease) in employee benefits
Net cash used in operating activities
Note 22. Loss per share
426,260
1,147,575
505,675
-
15,748
(157,737)
252,264
-
19,128
7,838
(34,428)
(211)
(1,143,837)
(895,782)
Consolidated
2022
$
2021
$
Loss after income tax attributable to the owners of Cohiba Minerals Limited
(2,827,947)
(1,393,784)
Weighted average number of ordinary shares used in calculating basic earnings per
share
1,426,384,178
1,198,059,822
Weighted average number of ordinary shares used in calculating diluted earnings
per share
1,426,384,178
1,198,059,822
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.198)
(0.198)
(0.116)
(0.116)
No options or performance rights have been included in the weighted average number of ordinary shares for the purposes
of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”. The rights
to options are non-dilutive as the Consolidated entity is loss generating.
Accounting policy for earnings per share
Basic loss per share
Basic loss per share is calculated by dividing the profit attributable to the owners of Cohiba Minerals Limited, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after
income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
43
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 23. Share-based payments
Set out below are summaries of options granted during the year and on issue at the end of the financial year from equity-
settled share-based payment transactions:
2022
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired
22/05/2020
18/12/2020
27/08/2021
26/11/2021
22/05/2022
18/12/2023
27/08/2024
17/12/2024
$0.01 19,000,000
$0.02 54,000,000
$0.02
$0.04
-
-
- 14,000,000
- 45,000,000
73,000,000 59,000,000
(19,000,000)
-
-
-
(19,000,000)
Balance at
the end of
the year
-
-
- 54,000,000
- 14,000,000
- 45,000,000
- 113,000,000
During the previous financial year the consolidated entity issued 35,000,000 unlisted options to directors, management and
consultants.
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired
22/05/2020
18/12/2020
22/05/2022
01/12/2023
$0.01 35,000,000
$0.02
-
- 54,000,000
35,000,000 54,000,000
(16,000,000)
-
(16,000,000)
Set out below are the options exercisable at the end of the financial year:
Balance at
the end of
the year
- 19,000,000
- 54,000,000
- 73,000,000
Grant date
Expiry date
22/05/2020
18/12/2020
27/08/2021
22/05/2022
18/12/2023
27/08/2024
2022
2021
Number
Number
- 19,000,000
24,000,000 24,000,000
-
14,000,000
38,000,000 43,000,000
An additional 30,000,000 unlisted options exercisable at $0.02 on or before 18 December 2023 are subject to satisfaction of
vesting conditions. The options will vest upon the Company announcing an independently verified JORC compliant Inferred
Mineral Resource of a minimum of 2 million tonnes at a copper equivalent (CuEq) grade of not less than 0.5% Cu for at least
10,000 tonnes of copper metal equivalency across any of the Company’s tenements. The options have been accounted for
on a pro rata basis over the expected vesting period with $169,500 of the total expense ($508,500) recorded in the current
financial year.
During the financial year the Company issued 45,000,000 unlisted options which will vest subject to the Company’s average
market capitalisation over a period of 7 consecutive Trading Days (calculated on the basis of the ASX closing share price on
each Trading Day) meeting or exceeding $200 million.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
27/08/2021
26/11/2021
18/12/2023
17/12/2024
$0.021
$0.014
$0.02
$0.04
148.67%
80.00%
-
-
0.11%
0.09%
$0.015
$0.004
44
Cohiba Minerals Limited
Notes to the financial statements
30 June 2022
Note 23. Share-based payments (continued)
Reconciliation of share based payments expense recorded in the statement of profit and loss relating to each class of share
based payment:
Consolidated
30 June 2022 30 June 2021
Options issued to directors, management, and consultants
426,260
505,675
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees, consultants and suppliers.
Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where
the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is determined using the Black
Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the
share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with non-vesting conditions that do not determine whether the company
receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are usually recognised as an expense with a corresponding increase in equity over
the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
The cost of equity-settled transactions can also be recognised as capital raising costs recorded against equity, with the same
recognition approach as above.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
45
Cohiba Minerals Limited
Directors' declaration
30 June 2022
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2022 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mordechai Benedikt
Executive Chairman
30 September 2022
46
Cohiba Minerals Limited
Independent auditor’s report to members
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Cohiba Minerals Limited (the Company) and its controlled entities
(together, the Group), which comprises the consolidated statement of financial position as at 30 June 2022,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year then ended; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (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.
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 to the financial report, which indicates that the Group incurred a net loss of
$2,827,947 net cash outflows from operating activities of $1,143,837 and negative cashflows from investing
activities of $4,255,046 for the year ended 30 June 2022. As stated in Note 1, these events or conditions,
indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue
as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going
Concern section, we have determined the matters described below to be the key audit matters to be
communicated in our report.
CARRYING VALUE AND CAPITALISATION OF EXPLORATION AND EVALUATION ASSETS
Area of focus
How our audit addressed it
As disclosed in Note 8, the Group incurred
exploration and evaluation costs related to
exploration projects.
The Group holds the right to explore and evaluate
those projects through either a direct ownership of
the underlying Area of Interest or through Farm-in
Arrangements with third parties (who hold the
underlying right to the Area of Interest). Specific
costs related to such ‘Area of Interest’ activity are
capitalised where the AASB 6 Exploration for and
Evaluation of Mineral Resources criteria is met.
Subsequent to the year end, the Director’s sought
to exit its Farm-In arrangement at its Warriner
Creek project due to unsatisfactory results of the
exploratory testing. Accordingly, the related assets
were assessed for impairment, and 100% of the
related capitalised exploration and evaluation
assets were provided for as at 30 June 2022.
There is a risk that the Group may lose or relinquish
its rights to further explore and evaluate those
areas of interest and therefore amounts capitalised
to the statement of financial position from the
current and historical periods be no longer
recoverable.
Due to the judgements involved in assessing
recoverability of capitalised exploration and
evaluation assets, this was considered a Key Audit
Matter.
In order to meet this risk, our audit procedures
included the following:
— Understanding and vouching the underlying
contractual entitlement to explore and evaluate
each area of interest, be this through Farm-in
Arrangement and/or directly through to the
underlying tenement, including an evaluation of
the requirement to renew that tenement at its
expiry;
— Examining project spend per each area of
interest and comparing this spend to the
minimum expenditure requirements set out in the
underlying tenement expenditure plan;
— Examining project spend to each area of interest
to assess that costs are directly attributable to
that area of interest;
— Reviewing management’s impairment
assessment paper including vouching any
renewal licenses to support;
— Comparing the market capitalisation of the Group
to the net carrying value of its net assets on the
statement of financial position to identify any
other additional indicators of impairment; and
— Correct disclosure in relation to the joint venture
operation farm-in agreement in reference to the
Olympic Domain joint venture
We also assessed the adequacy of the Group’s
disclosures in respect of capitalised exploration
costs and the planned expenditures under either
direct tenement agreements or as applicable under
Farm-in Arrangements.
RECOVERABILITY OF OTHER ASSETS
Area of focus
How our audit addressed it
As disclosed in Note 8, the Group held a 80%
ownership in Olympic Domain tenements, and
during the prior period, a Deed of Settlement was
entered with Olympic Domain Pty Ltd, the minority
shareholder in the tenements, requiring the
reimbursement of 20% of incurred exploration and
evaluation expenditure on these sites from January
2021.
As at 30 June 2022, an amount receivable of $0.6
million from Olympic Domain for reimbursement of
incurred exploration costs in line with the Deed of
Settlement was outstanding, and identified as a
credit risk. As the exploration expenditure has not
been recovered by the Group, the costs have been
capitalised as exploration and evaluation assets in
accordance with AASB 6 Exploration and
Evaluation of Mineral Resources.
Due to the material nature of the associated
exploration costs and the judgement applied with
respect to capitalising the costs, this matter was
considered a Key Audit Matter.
Our audit procedures included the following:
— Assessing the initial Farm-in Arrangement, to
consider the Group’s rights and obligations with
respect to the Olympic Domain tenements;
— Obtaining and reviewing the terms and
conditions of the Deed of Settlement executed
with Olympic Domain to support the
reimbursement of incurred exploration costs;
— Assessing the credit risk of recovery of the aged
receivable from Olympic Domain
— Assessing management’s 20% reimbursement
amount to a sample of invoices recharged to
Olympic Domain; and
— Assessing the appropriateness of capitalising the
expenditure incurred in accordance with AASB 6
on the basis the costs were specific to the
tenements
We also ensured that these matters were
completely and accurately disclosed in the financial
statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022 but does not include the financial
report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 Group are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to fraud
or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Cohiba Minerals Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion
on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
N. S. Benbow
Director
Melbourne, 30th September 2022
Cohiba Minerals Limited
Shareholder information
30 June 2022
The shareholder information set out below was applicable as at 15 September 2022.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
157
14
19
985
1,237
-
-
0.01
3.07
96.92
2,412
100.00
Holding less than a marketable parcel
681
-
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
-
-
-
-
10
-
-
-
-
-
-
100.00
-
-
Ordinary
shares
Number held
ordinary
Shares
% of total
shares
issued
Jascot Rise Pty Ltd (Jascot Rise A/C)
Gefen Investments Pty Ltd
Sredins Super Fund Pty Ltd
Jamora Nominees Pty Ltd (Kaboonk Discretionary A/C)
Bnp Paribas Nominees Pty Ltd (Ib Au Noms Retailclient Drp)
EMM Provident Fund Pty Ltd
Mr Jinggang Li
Jascot Rise Pty Ltd (Jascot Rise S/F A/C)
Bd Penfold Pty Ltd (B Merkaz Super Fund A/C)
Vicex Holdings Proprietary Limited (Vicex Super A/C)
Mr Peter J Jesson
Mr Salvatore Di Vincenzo
Citicorp Nominees Pty Limited
Mr Nachum Labkowski
Brevmar Pty Ltd (Glen Invest S/F A/C)
Top Safety Australia Pty Ltd
Mr Peter A Proksa
Mr Shimshon Heller
Mr Peiming Li
Mrs Laurentia M Gordon
52
111,818,264
44,617,410
38,474,864
31,764,711
24,649,480
24,613,809
22,100,000
21,505,000
21,403,142
19,161,203
17,907,000
16,747,681
14,976,486
14,744,250
12,100,000
12,061,171
12,000,000
11,559,806
11,000,000
11,000,000
6.87
2.74
2.36
1.95
1.51
1.51
1.36
1.32
1.31
1.18
1.10
1.03
0.92
0.91
0.74
0.74
0.74
0.71
0.68
0.68
494,204,277
30.36
Cohiba Minerals Limited
Shareholder information
30 June 2022
Unquoted equity securities
Options over ordinary shares issued
Substantial holders
Voting rights
The voting rights attached to ordinary shares are set out below:
Number
on issue
Number
of holders
113,000,000
10
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
Tenements
Description
Exploration Licence (WA)
Exploration Licence (QLD)
Exploration Licence (QLD)
Exploration Licence (QLD)
Exploration Licence (QLD)
Mining Licence (QLD)
Mining Licence (QLD)
Mining Licence (QLD)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Tenement number
E74/594
EPM26376
EPM26377
EPM26379
EPM26380
ML 2054
ML 2773
ML 90098
EL 6118
EL 6119
EL 6120
EL 6121
EL 6122
EL 6183
EL 5970
Interest
owned %
100.00
100.00
100.00
100.00
100.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
Corporate Governance Statement
The Company’s 2022 Corporate Governance Statement has been released to ASX on this day and is available on the
Company’s website at: https://www.cohibaminerals.com.au/our-company/corporate-governance/
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