ANNUAL REPORT
2022
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 TABLE OF CONTENTS
LETTER FROM THE CHAIR 02
OPERATIONAL UPDATE 04
ABOUT CODA MINERALS 06
DIRECTORS’ REPORT 16
AUDITOR’S INDEPENDENCE DECLARATION 36
INDEPENDENT AUDITOR’S REPORT 38
DIRECTORS’ DECLARATION 42
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME 44
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 45
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 46
CONSOLIDATED STATEMENT OF CASH FLOWS 47
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS 48
ASX ADDITIONAL INFORMATION 81
CORPORATE DIRECTORY 88
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
LETTER FROM THE CHAIR
Dear Shareholders,
I am pleased to present Coda Mineral’s 2022 Annual Report and to reflect on a year marked by continued advancement of
our flagship assets at Elizabeth Creek.
Our exploration and development activities were complimented by the strategic acquisition of Torrens Mining giving us
100% ownership of the Elizabeth Creek assets.
The Coda team focussed on and delivered safely on time and on budget two major exploration campaigns at Elizabeth
Creek and post year end a limited campaign at Cameron River in Queensland.
Given the very difficult people and logistics issues across the industry this was a very positive outcome from our team.
Elizabeth Creek Resource increased to over One Million Tonnes contained copper equivalent
Our exploration team delivered a major uplift in resources over the year by adding a new resource for the Emmie Bluff
Copper-Cobalt Deposit taking Coda’s total Resources from just 280 thousand tonnes on listing to over 1.1 million tonnes
contained copper equivalent.
The Emmie Bluff asset is now progressing through a Scoping Study, which we anticipate finalising during the fourth
quarter of 2022.
Coda is very well placed as the global energy transformation unfolds and copper and cobalt are forecast to be in
significant supply deficit.
During financial year 2023 we will continue to build on this success as we look to advance studies and prepare Emmie
Bluff and its satellite deposits, MG14 and Windabout for future commercialisation.
Elizabeth Creek IOCG Exploration
In June 2021, our first deep exploration drill hole at Emmie IOCG led to the discovery of a major IOCG system beneath the
shallower mineralisation at Emmie Bluff. During the whole of financial year 2022, Coda undertook a significant programme
consisting of a total of 21 drill holes for over 23,000m of diamond drilling to follow up and define this discovery.
On completion of the phase one programme, we moved to a geophysical approach using cutting-edge ambient noise
technology (ANT) as we seek to uncover and understand more of this vast copper-rich system.
We expect to see the results of this work in early 2023 as we continue to define and understand what remains an enormous
opportunity for the Company. Emmie IOCG is a rare and important discovery on the Gawler Craton which is host to some of
the largest IOCG systems on Earth. There is much work remaining to understand this system and we will continue to execute
against our exploration plan in financial year 2023.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 LETTER FROM THE CHAIR
Coda’s Non-Core Assets
During financial year 2022 the Company advanced work at Cameron River in Queensland defining multiple targets on this
prospective ground. Phase one drilling commenced after year end. We expect to achieve 51% ownership of Cameron
River during financial year 2023.
Coda acquired gold and rare earths exploration assets in Victoria, New South Wales and PNG as part of the Torrens
acquisition. In July 2022 Coda sold the Mt Piper gold exploration assets to Kalamazoo Resources (ASX:KZR) retaining an
interest in the package through ownership of a share package in Kalamazoo and a royalty from any future production on
the tenure.
We will continue to evaluate opportunities for the other former Torrens assets to drive the greatest value for all
shareholders whilst allowing us to maintain our focus on Elizabeth Creek
Conclusion
We enter financial year 2023 stronger than ever having delivered a maiden Mineral Resource Estimate for Emmie Bluff,
one of the largest sedimentary copper deposits in Australia and are well advanced in delivering a Scoping Study on the
copper-cobalt deposits at Elizabeth Creek.
Emmie IOCG exploration continues to offer exciting upside as we build our knowledge of the structures.
I would like to thank our shareholders for their tremendous support over the past year. The share markets both on a
global and local basis have been difficult but Coda is well placed with developing assets in growing markets.
Coda has maintained an extremely low corporate cost base while expanding a quality copper asset base. This positions
us to capitalise on the enormous forecast demand for copper as the world works towards decarbonization.
In conclusion, I thank my fellow board members, our CEO Chris Stevens and the team at Coda as well as our advisers,
CPS Capital, who have provided excellent support and guidance over the past year.
Keith Jones
Chair
Coda Minerals Ltd
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 O P E R AT I O N A L U P D AT E
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 OPERATIONAL UPDATE
I am pleased to look forward to the work programme for financial year 2023 following another extremely active year
for the Company. Over the past year we have focused on building long term, stable foundations for Coda Minerals to
position your Company to become an integral supplier of minerals required for global energy transformation through
electrification and the adoption of renewable energy technologies.
Against a challenging global economic environment, copper prices have fallen, however, price forecasts remain strong
as the continued supply of copper is critical to changes in the way energy is produced, stored, and transmitted. These
forecast demand increases are against the backdrop of declining mine grades, declining production, and a scarcity of
exploration over the past decades.
Elizabeth Creek is located in arguably the world’s premier copper jurisdiction with a stable and supportive government,
exceptional access to the skills and services required to develop projects and forward-thinking renewable energy
policies. This is the right time, and the right place to be creating a strong base of copper assets.
Financial Year 2023 will see us take the next steps along the path to commercialisation for the shallower sedimentary
copper-cobalt Resources at Emmie Bluff, Windabout, and MG14. We anticipate the delivery of a Scoping Study during
the latter part of 2022 which will detail plans for the mining and processing of JORC Resources totalling 1.1 million tonnes
of contained copper equivalent. This Scoping Study will define the next stage of work looking towards pre-feasibility
studies and the continued de-risking and commercialisation of our copper-cobalt Resources.
Beyond our flagship project at Emmie Bluff, we will continue to explore the deeper IOCG mineralisation at Elizabeth
Creek. Our work during financial year 2023 will focus on better defining this system, initially through a major geophysical
programme which will be calibrated against existing drilling.
IOCG exploration can be challenging and requires persistence and careful planning. With the geophysical work
building on a solid foundation of drilling we believe we are taking the appropriate steps to understand the Emmie IOCG
mineralising system; the coming work programme is exciting and carries potentially enormous upside for shareholders.
We will also continue to maintain our focus on commercialising non-core exploration assets at Cameron River,
Club Terrace, and Balmoral through low-cost exploration, divestiture, or joint venture. With Elizabeth Creek now
consolidated to one hundred percent ownership and the incredible progress at Emmie Bluff and Emmie IOCG our focus
will remain on building on these strong geological foundations over the coming year.
We look forward to another exciting, fast paced, and successful year building value for all shareholders.
Chris Stevens
CEO
Coda Minerals Ltd
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 A B O U T C O D A M I N E R A L S
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ABOUT CODA MINERALS
Coda Minerals Limited (ASX: COD) is focused on the discovery and development of minerals that are leveraged to the
global energy transformation through electrification and the adoption of renewable energy technologies.
Coda’s flagship asset is the 100%-owned Elizabeth Creek Copper-Cobalt Project, located in the world-class Olympic
Copper Province in the Eastern Gawler Craton, South Australia’s most productive copper belt. Elizabeth Creek is centred
100km south of BHP’s Olympic Dam copper-gold-uranium mine, 15km from its new Oak Dam West Project and 50km west
of OZ Minerals’ Carrapateena copper-gold project.
Coda consolidated 100% ownership of the Elizabeth Creek Copper Project after completing the acquisition of its former
joint venture partner, Torrens Mining, in the first half of 2022.
In December 2021, Coda announced a maiden Indicated and Inferred Mineral Resource Estimate for the Emmie Bluff
copper-cobalt deposit at Elizabeth Creek comprising 43Mt @ 1.3% copper, 470ppm cobalt, 11g/t silver and 0.15% zinc
(1.84% CuEq) containing approximately 560kt copper, 20kt cobalt, 15.5Moz silver and 66kt zinc (800kt CuEq). Importantly,
92% of the contained metal is classified in the higher confidence ‘Indicated Resource’ category and is available for use in
mining studies.
Emmie Bluff is one of three known ‘Zambian-style’ copper-cobalt deposits at Elizabeth Creek, including JORC 2012
compliant Indicated Mineral Resources at the Windabout (18Mt @ 1.14% CuEq) and MG14 (1.8Mt @ 1.67% CuEq) deposits.
Collectively, the three resources at Elizabeth Creek now host a total of 1.1 million tonnes of contained copper equivalent.
Coda has also discovered a significant IOCG system adjacent to and below the Emmie Bluff target, with initial deep
diamond drilling in June 2021 intersecting 200m of intense IOCG alteration at the Emmie IOCG target, including
approximately 50m of copper sulphide mineralisation. Since then, Coda has drilled 21 holes into Emmie IOCG, with all but
three returning significant widths of mineralisation, some over 3% copper and 0.5g/t gold.
Coda has a dual strategy for success at Elizabeth Creek. Firstly, it is working towards a Scoping Study to determine the
economic potential of the known sediment-hosted Mineral Resources on the tenure, while simultaneously undertaking
exploration to further define and extend known Zambian-style copper-cobalt resources across multiple prospects.
Secondly, it is undertaking a substantial geophysics programme at the Emmie IOCG prospect to further understand the
structures and extent of the geological model defined over the past year of drilling.
Coda also has a Farm-In and Joint Venture Agreement with Wilgus Investments Pty Ltd to acquire up to 80% ownership
of the Cameron River Copper-Gold Project, located in the highly prospective Mount Isa Inlier in Queensland. The Project
comprises 35km2 of copper and gold exploration tenure spanning two Exploration Permits (EPMs 27042 and 27053).
Through the Torrens Mining acquisition, Coda also owns exploration tenements in Victoria, New South Wales and
Papua New Guinea.
TOTAL AREA 701km2
BALMORAL
CLUB TERRACE
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ELIZABETH CREEK
THE ELIZABETH CREEK COPPER-COBALT PROJECT HOSTS THREE DISTINCT MINERALISATION STYLES, THE
ZAMBIAN- STYLE COPPER-COBALT MINERALISATION, THE IRON OXIDE COPPER GOLD (IOCG) MINERALISATION AND
THE CATTLEGRID COPPER BRECCIA MINERALISATION. OVER THE FINANCIAL YEAR, CODA REMAINED FOCUSED ON
PURSUING AND PROGRESSING EXPLORATION ACROSS THE FIRST TWO MINERALISATION STYLES.
Zambian Style Copper-Cobalt Deposits
The core focus of the company over the financial year has been to systematically prove up its flagship Emmie Bluff
Copper-Cobalt Deposit. Located at the northern edge of the company’s tenure, Emmie Bluff is geologically consistent
with the company’s other two deposits at MG14 and Windabout, consisting of an extensive, flat-lying sheet of Tapley Hill
Formation black shale. Mineralisation occurs at the upper and lower contacts of the shale and extends over an extensive
area of approximately 4.5 square kilometres, at an approximate depth of 400m.
During the first quarter of financial year 2022, Coda completed a major resource drill program consisting of 12 Holes
(principally RC pre-collars, diamond tails) across the deposit to underpin a maiden JORC 2012 Mineral Resource Estimate.
OVERVIEW
ELIZABETH CREEK
Sedimentary: Cu-Co
- Established JORC Resources
- 1.1Mt of Contained CuEq Defined
- Scoping study expected 2H 2022
IOCG: Cu-Au
- Major IOCG mineralised system identified
- Extensive geophysics campaign planned
- High risk, high reward exploration
Cattlegrid: Cu
- Copper breccia prospect
- Extensive historical drilling
- Rapid pathway to Resource estimate
Mineral Resource
In December 2021, Coda delivered a standout maiden Emmie Bluff Mineral Resource Estimate of 43Mt at 1.30% Cu,
470ppm Co and 11 g/t Ag and 0.15% Zn, for an approximate net grade of 1.84% CuEq. Approximately 39Mt, comprising
90% of the mass and 92% of the metal (contained CuEq) is classified in the Indicated Resource category, with the
remainder Inferred.
The resource is split into two lodes, each with comparable grades, but with the upper lode containing the majority of the
mass and therefore the contained metal.
In combination with the already defined Mineral Resources at MG14 and Windabout, Coda has a total of 1.1Mt of CuEq
defined across the tenure.
Following this significant milestone, Coda commenced and is continuing to undertake a detailed scoping study into the
defined resources. The study is progressing towards an anticipated release date in the fourth quarter of 2022.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ELIZABETH CREEK
Isometric west view of Emmie
Bluff upper Tapley lode
(5 times vertical exaggeration).
EXISTING JORC 2012 MINERAL RESOURCES
Windabout1,2
MG141,2
TOTAL
Emmie Bluff1,3
TOTAL
Contained Metal1
Category
Indicated
Indicated
Indicated
Inferred
Mt
17.67
1.83
19.5
38.80
4.50
43.3
Cu%
0.77
1.24
0.8
1.30
1.10
1.30
Tonnes
721,000
Co%
0.05
0.03
0.05
0.05
0.02
0.047
Tonnes
29,400
Ag g/t
CuEq%6
8
14
8.6
11
9
11
1.414
1.674
1.14
1.905
1.405
1.84
MOz
20.90
Tonnes
1,100,000
1 Numbers have been rounded
2 (JORC 2012 Indicated) 0.5% CuEq. cut-off. See Gindalbie Metals ASX announcement on 19 January 2018 for Competent Person’s statement
and full details
3 JORC 2012 Indicated) 1.0% CuEq. cut-off. See Coda Minerals ASX announcement on 20 December 2021 for Competent Person’s statement
and full details
4 Copper equivalent calculated using the following formula CuEq% = Cu% + 0.0012 × Co ppm
5 Copper equivalent calculated using the following formula CuEq% = Cu% + 0.00068 × Co ppm + 0.337 × Zn % + 90.3 × (Ag ppm)/10000
6 Although CuEq calculation differs between the resources, the company believes it is reasonable to compare and combine the contained tonnes
IOCG
Coda commenced drilling at Emmie IOCG in May 2021, with the initial discovery hole, DD21EB0018, announced in June
2021. Coda spent much of the following twelve months undertaking follow up exploration, completing a total of nine
parent holes and 12 wedges, plus an additional IOCG hole at the Elaine prospect, before concluding its financial year
2022 IOCG drill program in May 2022. At Emmie IOCG, all but three holes at encountered mineralisation, some with over
3% copper and 0.5g/t gold.
EBD3W2
BORNITE DOMINATED
CHALCOPYRITE DOMINATED
EB18W2
BORNITE DOMINATED
EB18W2
BORNITE DOMINATED
69m
24m
13m
24m
13m
803m
912m
815m
902m
815m
902m
27m @ 2.0% Cu, 0.29 g/t Au
42m @ 1.2% Cu, 0.28 g/t Au
24m @ 2.2% Cu, 0.29 g/t Au
13m @ 3.5% Cu, 0.64 g/t Au
24m @ 2.2% Cu, 0.29 g/t Au
13m @ 3.5% Cu, 0.64 g/t Au
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ELIZABETH CREEK
The programme, which comprised approximately 23,000m of diamond drilling, has shown Emmie IOCG to be a
significant and extensive mineralised system, with many noteworthy similarities to major Eastern Gawler IOCGs such as
Olympic Dam and Carrapateena, but also some differences, particularly in the geometry of the ore body.
Emmie IOCG appears to be fed from a series of north-northwest aligned conduits, of which Coda has positively identified
three to date. These conduits allow copper and iron bearing fluids to flow into high permeability zones in the surrounding
rock, generating laterally extensive tabular mineralised lodes. These lodes show classic IOCG sulphide zonation, with
the cores nearest the conduits often dominated by high grade copper minerals like bornite and chalcocite. To date, Coda
has identified three geochemically distinct “bornite zones”.
Mineralisation has been established over an area greater than 500m east-west and 800m north-south, with indications
from historical drilling suggesting the overall system extends considerably further. Exploration moving forward will
focus on improved definition of the system through geophysics and further drilling of prospective conduit sites to
extend high-grade bornite zones.
Events Subsequent to Year End
Final assays result for drillholes EBD7W1 and EBD8 from the Emmie IOCG program were received in August 2022.
The results significantly enhanced Coda’s understanding of the geological structure and support the current
exploration model.
The next step of exploration for Emmie IOCG will be the deployment of Fleet Space Technologies’ “ExoSphere” –
an Acoustic Noise Tomography (ANT) survey. ExoSphere is a real-time ANT passive seismic exploration technique that makes
use of pervasive seismic noise from natural and anthropogenic sources to visualise a three-dimensional subsurface shear
wave velocity model. This technology is able to cover a large area and visualise below cover of more than 1000m.
For Emmie IOCG, the survey will produce an image of the paleotopographic surface to help create detailed 3D constrained
models using geophysical data and provide indications of velocity anomalies which may signal the presence of material
iron oxide deposition. This will help in the understanding of geological structures as well as indicate presence of any
large-scale conduits.
The ANT survey has also been designed to detail the extent and gross geometry of the Zambian Style mineralisation
at Emmie Bluff. The planned survey is expected to cover an area of roughly 40 square kilometres across Emmie Bluff,
Emmie IOCG and numerous other prospective density related anomalies in the immediate area.
The survey data is expected to be collected in December and fully processed and interpreted early in calendar year 2023,
enabling the Company to plan next steps, including further drilling or geophysics, with the maximum potential for success.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CAMERON RIVER
CAMERON RIVER CONSISTS OF 35KM2 OF COPPER AND GOLD EXPLORATION TENURE SPANNING TWO
EXPLORATION PERMITS (EPMS 27042 AND 27053). THE TENURE IS LOCATED APPROXIMATELY HALFWAY
BETWEEN MT ISA AND CLONCURRY, AND IMMEDIATELY NORTH OF THE HISTORIC MARY KATHLEEN URANIUM
MINE IN NORTH QUEENSLAND.
In March 2021 Coda entered into a Farm-In and Joint Venture Agreement with Wilgus Investments Pty Ltd to acquire
up to 80% ownership of the Cameron River Copper-Gold Project.
Over financial year 2022, numerous geochemical and geophysical programs were carried out, including a Gradient
Array Induced Polarisation (GAIP) and Dipole-Dipole Induced Polarisation (DDIP) survey. These programmes delineated
multiple high priority targets across the tenure including at the historical Copper Weed and Rebound prospects, as well
as the newly identified Bluey, Bingo, Clifford prospects, among others. A maiden drill programme to test the targets,
comprising approximately 30 holes for 3,000m of Reverse circulation drilling commenced in September 2022.
Events Subsequent to Year End
A 27-hole RC drill programme was completed in September of 2022 for a total of 2,830m. As of the time of the
preparation of this report, samples were being prepared for assay and final results had not yet been received.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 E S G
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ESG
AT CODA MINERALS, THE HEART OF OUR BUSINESS IS TO GENERATE VALUE FOR OUR SHAREHOLDERS THROUGH
THE PRODUCTION OF MINERAL RESOURCES CRITICAL TO GLOBAL DEVELOPMENT ON A SUSTAINABLE BASIS.
CODA’S VALUES ARE UNDERPINNED BY OPERATING IN A WAY THAT ENSURES FOCUS ON AND RESPECT FOR THE
HEALTH AND SAFETY OF ALL PEOPLE WORKING ON OUR SITES; BUILDING EFFECTIVE RELATIONSHIPS WITH
TRADITIONAL OWNERS OF THE LAND UPON WHICH WE OPERATE, AND WITH LOCAL COMMUNITIES, SUPPLY
NETWORKS, CONTRACTORS, AND CUSTOMERS. CODA ALSO HAS AN UNWAVERING COMMITMENT TO MINIMISING THE
ENVIRONMENTAL IMPACT OF THE COMPANY’S ACTIVITIES, WITH REGARD TO BIODIVERSITY, NATURAL ECOSYSTEMS
AND THE COMPANY’S CARBON FOOTPRINT AS A PART OF ITS OPERATING STRATEGY.
Environment
In an industry dependent upon the development of natural resources in remote and sensitive environments, Coda
recognises our responsibility to conduct operations with care for the natural environment. Coda continues to do this by;
- Pursuing mining methods with the lowest possible environmental impact
- Investigating the integration of renewable energy generation options into operations
- Implementing best practices for clean water and waste management
- Ongoing studies and conservation of flora and fauna habitats
Community Relations & Indigenous Affairs
Coda holds the values of respect for indigenous heritage and environmental custodianship at the core of every activity
undertaken across our projects. As Coda grows in size and development focus, we will maintain that respect by;
- Developing sustainable businesses to create employment and local business opportunities
- Developing long-term relationships that value cultures and traditions of the region and by listening to key
stakeholders, embedding ongoing communication and continuous improvement into everything that we do.
- Identifying social needs in the area for tailored community investment
Safety Management
The foundation of Coda’s success is driven by our people. As such, the health and safety of all employees, contracting
partners, site visitors and the wider community in which we operate are central to our organisation. Coda continues to
strive towards a ‘zero harm’ philosophy by;
- Maintaining a health and safety system based on best industry standard
- Developing and empowering employees and contractors through engagement
- Identifying, assessing, mitigating and managing risks
- Setting measurable objectives and targets aimed at continuous improvement and eliminating work-related illness; and
- Ensuring completed work meets or exceeds relevant standards and codes of practice.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
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CODA MINERALS TIMELINE
APPOINTMENT OF CFO
Coda welcomed experienced mining
executive Mr Kudzai Mtsambiwa to
the team as Chief Financial Officer.
SEPTEMBER 2021
ESTABLISHMENT OF SMALL HOLDING SALE FACILITY
This facility was established to provide shareholders with
small holdings (< $500) an opportunity to sell their shares
without incurring any brokerage or handling costs
This facility completed on 27 January 2022,
successfully decreasing the number of small parcel
shareholders of the company.
OCTOBER 2021
CONTINUATION OF MAIDEN DRILL
PROGRAMME AT EMMIE IOCG
RESOURCE DRILLOUT COMPLETES
AT EMMIE BLUFFF
The programme, which commenced in
May 2021, progressed over the next 11
months, completing 9 parent drillholes
and 12 wedges, all but three of which
were mineralised. This drilling program
identified three major conduits driving
two geochemically and geologically
distinct bornite zones.
JULY 2021
Coda completed a 13-hole resource
drill out program at Emmie Bluff,
Maiden Resource estimate to follow.
SEPTEMBER 2021
43MT MAIDEN CU-CO RESOURCE
AT EMMIE BLUFF
Following an extensive drilling
campaign since listing in October
2020, a Maiden Mineral Resource
Estimate with a combined
Indicated and Inferred Mineral
Resource of 43Mt @ 1.3% Cu, 470
ppm Co, 11 g/t Ag and 0.15% Zn
(1.84% CuEq).
DECEMBER 2021
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CODA MINERALS TIMELINE
TAKEOVER OF TORRENS MINING
LIMITED
Coda and Torrens Mining announced
an intention to merge via a
recommended off-market all-scrip
bid to acquire 100% ownership of
Elizabeth Creek Copper Project.
100% OWNERSHIP OF ELIZABETH
CREEK ACHIEVED
Completion of takeover of Torrens
Mining resulting in 100% ownership of
Elizabeth Creek by Coda Minerals..
FEBRUARY 2022
JUNE 2022
SCOPING STUDY COMMENCES
Following the estimation of the Emmie Bluff
Resource, a Scoping Study into the Zambian
style copper-cobalt mineralisation at the
Elizabeth Creek Project has commenced.
JANUARY 2022
MOBILE MT HELICOPTER
AIRBORNE SURVEY
Mobile MT helicopter airborne
survey, partially funded
through the South Australian
Government’s Accelerated
Discovery Initiative (ADI),
commence.
JANUARY 2022
COMPLETION OF PHASE 1
AND 2 DRILL PROGRAMME
AT EMMIE IOCG
First two phases of drilling
at Emmie IOCG completed
on-time and on-budget.
MAY 2022
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 D I R EC T O R S ’ R E P O R T
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
The directors of Coda Minerals Ltd (‘the Company’ or ‘Coda’) present their report together with the financial statements
of the Company and its Subsidiaries (‘the Group’) for the financial year ended 30 June 2022 and the Auditor’s Report
thereon. In order to comply with the provisions of the Corporations Act 2001, the Directors’ report as follows:
DIRECTORS
The directors of the Company at any time during or since the end of the financial year were:
NAME & QUALIFICATIONS
EXPERIENCE AND SPECIAL RESPONSIBILITIES
Mr Keith F Jones
BBus, FCA, FAICD, FFin
Non-Executive Chairman
Appointed: 26 April 2018
Other current directorships:
Ora Banda Mining Limited
(Appointed April 2019)
Former directorships in last 3 years:
Gindalbie Metals Ltd
(February 2013 to July 2019)
Mr Andrew Marshall
I Eng (UK), MAICD
Non-Executive Director
Appointed: 19 July 2019
Former directorships in last 3 years:
Gindalbie Metals Ltd
(December 2010 to July 2019)
Mr Colin Moorhead
BSc (Hons), FAusIMM (CP), FSEG,
GAICD.
Non-Executive Director
Appointed: 21 August 2019
Other current directorships:
Xanadu Mines Ltd
(Appointed November 2019)
Aeris Resources Ltd
(Appointed July 2020)
Sihayo Gold Ltd
(Appointed July 2020)
Former directorships in last 3 years:
Merdeka Copper Gold Ltd
(January 2016 to July 2020)
Finders Resources Ltd
(August 2018 to October 2019)
Mr Jones is an experienced public company Chairman with a background of over 40
years professional experience providing advisory and consulting services to the mining
and resources sector.
Mr Jones served for 10 years on the Board of Deloitte Australia and was elected
Chairman of Deloitte Australia for four years. He is the former Chairman of Gindalbie
Metals Limited and Cannings Purple and currently serves as a Non-Executive Director
of ASX listed Ora Banda Mining Limited.
Mr Jones has significant executive leadership experience serving for 15 years as
the Managing Partner of Deloitte in Western Australia and as Leader of the National
Chinese Services Group and National Energy and Resources Group.
Mr Andrew (Robin) Marshall has previously been involved in managing the successful
delivery of some of the world’s largest resource projects, including major projects for
BHP Billiton, Vale Inco, Western Mining and North Limited.
At Vale Inco, he held the position of Project Director with responsibility for delivery
of the multi-billion dollar Goro Nickel Project in New Caledonia through to its
commissioning in early 2009. At BHP Billiton Iron Ore, Mr Marshall held the position of
Vice President – Asset Development Projects with responsibility for the development of
a number of projects in the first wave of expansion in the iron ore business sector.
In additional to these roles, Mr Marshall also previously held key positions of Project
Manager for the West Angelas Iron Ore Project with North Limited, Project Director with
Iron Ore Company of Canada, Manager Projects for Forrestania Gold/LionOre Australia,
Manager Engineering & Project Services for Western Mining Corporation and Project
Manager for Nedpac (Signet Engineering). Mr Marshall provides consulting services to
major companies and has extensive experience with overseas projects and operations.
Mr Moorhead is an experienced mining professional. He is well recognised in the
mining industry, including building safe, successful and highly regarded technical
teams; ability to develop and deliver strategy, culture and governance; a thorough
understanding of the technical, legal and commercial aspects of the mining business
with an exposure to many different cultures and operating environments. Also
recognised as a leader in the areas of health, safety, environment and community.
Prior to joining Coda Minerals, he served as CEO PT Merdeka Copper Gold Tbk (2016-
2018), EGM Minerals, Newcrest Mining Ltd, Australia (2008-2015), GM Resources &
Reserves of the same company (2006-2008), Geology Manager, PT Nusa Halmahera
Minerals, Gosowong Gold Mine, Indonesia (2003-2006), Technical Services Manager,
Cadia Holdings Ltd, NSW, Australia (1997-2003), and various other positions in the
mining industry in a career spanning 34 years since 1987.
In addition to this role at Coda, Colin is also the Executive Chairman of Xanadu Mines
Ltd, Executive Chairman of Sihayo Gold Limited and a Non-Executive Director of Aeris
Resources Limited.
Mr. Moorhead is a former President of The Australasian Institute of Mining and
Metallurgy (AusIMM) and a former member of The JORC Committee. He is also a
graduate of the Australian Institute of Company Directors and the Harvard Business
School Advanced Management Program (AMP183, 2012).
19
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
NAME & QUALIFICATIONS
EXPERIENCE AND SPECIAL RESPONSIBILITIES
Mr Hallam has more than 40 years Australian and international resource industry
experience. His operating and corporate experience is across a range of commodities
(iron ore, bauxite, alumina, aluminium, gold, silver, copper, zinc and lead) and includes
both surface and underground mining. Mr Hallam retired in 2011 to pursue a career as a
professional non-executive director. He has held Australian and international non-
executive director roles since 1997.
His former executive roles include Director – Operations with Fortescue Metals Group,
Executive General Manager – Developments & Projects with Newcrest Mining Limited,
Director – Victorian Operations with Alcoa and Executive General Manager – Base and
Precious Metals with North Ltd.
Mr Hallam is a qualified mining engineer and holds a BE (Hons) Mining from Melbourne
University and a Certificate of Mineral Economics from Curtin University. He is a Fellow
of the Australian Institute of Company Directors and the Australasian Institute of Mining
& Metallurgy.
Mr Stevens is an experienced resources executive and mineral economist who
joined Coda after holding the role of CEO at Gindalbie Metals. Prior to joining
Gindalbie in 2016, Mr Stevens was the Western Australian Mining Consulting Lead at
PricewaterhouseCoopers (PwC), where he managed professional teams to devise
strategy, evaluate investment options and assist in delivery of major transactions for
various ASX listed mining and energy companies.
Prior to joining PwC, Mr Stevens held senior roles in the mining industry including
General Manager- Commercial at Asia Iron and Commercial Manager at Gindalbie
Metals.
In addition to his executive resources experience, Mr Stevens has over 18 years’
experience working with Chinese companies in commercial consulting and private
equity. Mr Stevens is a Fellow of the AusIMM, holds an Honours degree from the
University of Oxford, a Master of Science in Mineral Economics from Curtin University,
and is a fluent Chinese speaker.
Mr Zhu is an experienced mining engineer. Mr Zhu has been with Ansteel since 1987 and
is now the CEO of Karara Mining Limited (a wholly owned subsidiary of Ansteel).
He joined the Board of Coda as a Nominee of Ansteel Mining on 22 May 2020 and
resigned on 31 August 2021.
Mr Paul Hallam
BE(Hons)Mining, FAICD, FAusIMM
Non-Executive Director
Appointed: 21 August 2019
Other current directorships:
Greatland Gold Plc.
(Appointed September 2021)
Former directorships in last 3 years:
Sandfire Resources Ltd
(May 2013 to November 2021)
Gindalbie Metals Ltd
(December 2011 to July 2019)
Mr Chris Stevens
BA (Hons), MA (Oxon), MSc, GAICD,
FAusIMM
Chief Executive Officer
Appointed: 26 April 2018
Other current directorships:
Enterprise Metals Limited
(Appointed October 2021)
Mr Zhu Changjiang
Bachelor of Mining Mechanical
Engineering
Non-Executive Director
Appointed: 22 May 2020
Resigned:
31 August 2021
COMPANY SECRETARY
The Company’s company secretary is Ms Susan Park BCom, ACA, F Fin, FGIA, FCIS, GAICD. Ms Park was appointed to the
position of company secretary on 25 November 2020.
PRINCIPAL ACTIVITIES
The principal activities of the Company during the financial year were the progression of exploration and evaluation
activities associated with the Elizabeth Creek Copper Cobalt Project (“Elizabeth Creek”) and Cameron River Copper
Gold Project (“Cameron River”), exploration for and evaluation of projects and potential joint ventures with other mining
companies to explore for minerals.
20
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
REVIEW OF OPERATIONS
Coda’s business strategy is to build long term shareholder value through the exploration and commercialisation of
copper, gold, cobalt and other base and battery minerals in the world’s premier mining jurisdictions.
Coda’s primary focus is on exploration and development opportunities at its Elizabeth Creek Copper Project in
South Australia. The Company has a dual strategy for success at Elizabeth Creek. Firstly, it is working to rapidly
advance studies on the Zambian-style copper-cobalt Resources at Emmie Bluff, MG-14, and Windabout. Secondly,
it is implementing a substantial exploration programme at Emmie Bluff Deeps to rapidly and efficiently evaluate the
potential for a Tier-1 IOCG system following a major mineralised intercept in June 2021.
The Company’s primary focus is on work at Elizabeth Creek, particularly the preliminary scoping studies following the
delivery of the maiden resource at Emmie Bluff and the exciting IOCG exploration. However, the Company is also actively
exploring for copper-gold mineralisation at Cameron River following acquiring the rights to earn up to 80% interest in
this highly prospective tenement package in.
Key events for the year ended 30 June 2022 include:
• Standout maiden Indicated and Inferred Mineral Resource Estimate (MRE) of 43Mt at 1.83% CuEq delivered for the
Emmie Bluff Zambian-style copper-cobalt deposit. The MRE, which contains approximately 560kt of copper, 20kt
of cobalt, 15.5Moz of silver ad 66kt of zinc (800kt CuEq), provides strong support for the go-forward case at Emmie
Bluff and Elizabeth Creek more broadly.
• The Emmie Bluff Copper Cobalt Scoping Study continued to advance steadily on time and budget with mining
studies well advanced and the initial flowsheet design complete. Initial metallurgical test work results undertaken
using the well-established Albion ProcessTM for base metal concentrates resulted in initial recoveries of greater
than 99% being achieved for copper and cobalt from Emmie Bluff concentrates which is a standout result for a base
metals project and a major boost for the Scoping Study.
• Exceptional copper-gold mineralisation intersected across numerous holes at the emerging Emmie Bluff Deeps
IOCG deposit, located 16km south-west of the world-class Oak Dam discovery (BHP) and ~400m south-west of the
Emmie Bluff deposit. The data being accumulated from the drilling is beginning to reveal the presence of multiple
stacked lodes and a high-grade, bornite-dominated core surrounded by classic IOCG copper sulphide zonation.
The drilling during the financial year continued to extend the mineralisation laterally across hundreds of metres in
multiple directions.
• Reverse Circulation (RC) drill programme at MG14 North encountered mineralisation to the east of the existing JORC
compliant MG14 Mineral Resource, opening up the potential for future expansion of the deposit.
• Multiple potential new base and precious metal prospects were identified by a desktop review of historical
geophysics at the Cameron River Project in North Queensland. A maiden drill programme to test the 2km long
Cooper Weed/Rebound geochemical anomaly at Cameron River, comprising approximately 30 holes for 3,000m
of Reverse Circulation drilling was commenced in September 2022.
•
In June 2022, Coda completed the acquisition of 100% of the issued share capital of Torrens Mining Limited
(“Torrens”) via an off-market takeover offer of 0.23 new Coda shares for every Torrens share held to create a
leading base and precious metals exploration company focussed on the Elizabeth Creek Copper Project (“Elizabeth
Creek”) in South Australia. Torrens was an Australian public company listed on the Australian Securities Exchange,
which, through its subsidiaries, held exploration interests in Australia and Papua New Guinea. Torrens held 25%
of the Elizabeth Creek as Coda’s joint venture partner on the project prior to the acquisition. Coda’s key rationale
for the transaction was to obtain 100% ownership consolidation of Elizabeth Creek into a single entity to provide
full exploration optionality and deliver management and cost synergies. Coda issued 26,381,493 shares with a fair
value of $16,507,467 to Torrens shareholders as well as 382,500 shares with a fair value of $248,625 to Torrens key
management personnel who held Torrens options as consideration for the acquisition.
21
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
FINANCIAL RESULTS
The net loss for the year ended 30 June 2022 was $14,210,882 (net loss for the year ended 30 June 2021 was $6,523,291).
As at the reporting date, the Company has $8,178,668 of cash reserves.
COVID-19
The ongoing COVID-19 pandemic affecting Australia and the world has had a limited impact on Coda’s operations
with restrictions on interstate travel and challenges associated with maintaining government recommended social
distancing practices being the key areas the Company has had to consider. Although these factors have the potential
to impact Coda’s ability to undertake fieldwork safely and cost effectively, the impact to date has been limited during
the current field programmes. The Company’s COVID-19 management plan has been established to address the ongoing
potential future impact. The Company will continue to monitor and manage the impact on its operations.
CORPORATE GOVERNANCE
In recognising the need for high standards of corporate behaviour and accountability, the Directors support and
have substantially adhered to the best practice recommendations set by the ASX Corporate Governance Council.
The Company’s corporate governance policies are all available on the Company’s website at www.codaminerals.com
COMMITTEE MEMBERSHIPS
The Company maintains an Audit and Risk Committee and a Nomination and Remuneration Committee which consist of
the following Directors:
AUDIT AND RISK COMMITTEE
NOMINATION AND REMUNERATION COMMITTEE
P Hallam (Chairman)
KF Jones (Chairman)
KF Jones
A Marshall
DIRECTORS’ MEETINGS
A Marshall
P Hallam
C Moorhead
The number of Directors’ meetings held during the financial year and the numbers of meetings attended by each
Director were:
DIRECTORS’ MEETINGS
NOMINATION AND
REMUNERATION
COMMITTEE MEETINGS
AUDIT AND RISK COMMITTEE
MEETINGS
HELD
ATTENDED
HELD
ATTENDED
HELD
ATTENDED
KF. Jones
A. Marshall
C. Moorhead
P. Hallam
C. Stevens
C. Zhu
9
9
9
9
9
1
9
9
9
9
9
1
2
2
2
2
2
-
2
2
2
2
2
-
3
3
3
3
3
-
3
3
3
3
3
-
22
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Company during the year not otherwise disclosed in this
report.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year apart from the following:
• On the 4th of July 2022, Coda agreed to divest its Mt Piper Gold Project in central Victoria to Kalamazoo Resources
Limited (“Kalamazoo”) for a $300,000 cash consideration upon completion, 1,525,000 fully paid ordinary shares
in Kalamazoo upon completion (escrowed for 12 months) and a 1.0% net smelter royalty payable on any minerals
extracted from the tenements;
• On the 12th of July 2022, 499,742 performance rights were issued to employees under the Employee Incentive Plan;
and
• On the 12th of July 2022, 50,928 Coda shares were issued to employees upon the exercise of vested performance
rights that were under the Employee Incentive Plan.
CORPORATE STRATEGY & LIKELY DEVELOPMENTS
ELIZABETH CREEK COPPER COBALT PROJECT
Scoping study
The Elizabeth Creek Scoping Study is advancing steadily on time and budget towards an anticipated release date in the
third quarter of the 2022 calendar year.
Exploration
The 2022 financial year exploration program at Elizabeth Creek resulted in the company updating the geological
model for the Emmie IOCG, and this updated model provides Coda with three key opportunities to target additional
mineralisation:
1. Extension of bornite zone and associated mineralisation along strike at the three known major conduits;
2. Discovery of additional conduits and mineralised zones in areas where they have been inferred or within the bounds
of the Emmie IOCG geophysical signature (which covers approximately 3 square kilometres); and
3. Additional discoveries through the examination of nearby gravity anomalies within the broader Emmie Bluff
mineralised footprint, which extends several kilometres in multiple directions.
The next step in Coda’s phased exploration approach at Emmie IOCG will be the deployment of Fleet Space Technologies’
“ExoSphere” – an Acoustic Noise Tomography (ANT) survey. ExoSphere is a real-time ANT passive seismic exploration
technique that makes use of pervasive seismic noise from natural and anthropogenic sources to visualise a three-
dimensional subsurface shear wave velocity model. The initial survey is expected to cover an area of roughly 40
square kilometres across Emmie Bluff, Emmie IOCG and numerous other prospective density related anomalies in the
immediate area.
The survey will produce an image of the paleotopographic surface, allowing for detailed 3D constrained forward
modelling of magnetic and gravity data, as well as providing indications of velocity anomalies which may indicate the
presence of material iron oxide deposition. Such an understanding of the geometries may provide a more detailed
understanding of major horst and graben structures as well as potentially indicating the presence of any large-scale
conduits not yet identified by drilling.
The survey is also expected to isolate in detail the extent and gross geometry of any Tapley Hill shale in the area, offering
the potential to expand the shallower Zambian-style Cu-Co-Ag mineralisation at Coda’s Emmie Bluff Mineral Resource.
The survey data is expected to be collected in December and fully processed and interpreted early in calendar year 2023,
enabling the Company to plan next steps, including further drilling or geophysics, with the maximum potential for success.
23
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
CAMERON RIVER COPPER GOLD PROJECT
Exploration
Coda commenced a drill programme at Cameron River comprising approximately 30 holes for 3,000m of Reverse
Circulation Drilling in September 2022.
ENVIRONMENTAL REGULATION
The Company’s current exploration and development activities are conducted in accordance with environmental
regulations under both Commonwealth and State legislation.
As stated in the Environmental Policy, the Company is committed to achieving superior standards in its environmental
performance. It has employed environmental professionals to monitor this area of operating performance, with
responsibility for monitoring of environmental exposures and compliance with environmental regulations.
Compliance with the requirements of environmental regulations and with specific requirements of the relevant
managing authorities including the Department of Environment and Conservation, and the Department of Industry and
Resources was achieved across all aspects of the current operations.
There were no instances of non-compliance in relation to any instructions or directions from the relevant governing
agencies. The Board is not aware of any significant breaches during the period covered by this report.
REMUNERATION REPORT – AUDITED
The directors present the Coda Minerals Ltd 2022 remuneration report, outlining key aspects of our remuneration policy
and framework, and remuneration awarded this year.
(a) Key management personnel
The following persons were deemed to be Key Management Personnel (“KMP”) during or since the end of the
financial year for the purpose of Section 300A of the Corporations Act 2001 and unless otherwise stated were KMP
for the entire reporting period.
NON-EXECUTIVE DIRECTORS
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Non-Executive Director & Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Mr Zhu Changjiang was a Non-Executive Director until his resignation on 31 August 2021. He did
not receive any remuneration during the financial year.
EXECUTIVE DIRECTORS
Chris Stevens
Chief Executive Officer & Executive Director
OTHER EXECUTIVES
Kudzai Mtsambiwa
Chief Financial Officer
2 4
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
(b) Remuneration policy for key management personnel
The Board is responsible for determining the appropriate remuneration for directors and senior management via
the Remuneration Committee. The committee is made up of independent non-executive directors.
The Company’s remuneration policy is designed to:
•
•
•
ensure that coherent remuneration policies and practices are observed which enable the attraction and
retention of directors and management who will create value for shareholders;
fairly and responsibly reward directors and senior management having regard to the Company’s performance,
the performance of the senior management and the general pay environment; and
comply with all relevant legal and regulatory provisions.
Non-executive directors
The board’s policy is to remunerate Non-executive Directors at market rates for comparable companies for time,
commitment and responsibilities. The Remuneration Committee on behalf of the board determines payments
to the Non-executive Directors and reviews their remuneration annually to ensure it remains aligned to business
needs and meets remuneration principles. From time to time, the committee also engages external remuneration
consultants to assist with this review. Although no remuneration consultant was engaged during the current
Financial Year the board undertook comparable benchmarking of peer remuneration. In particular, the board aims
to ensure that remuneration practices are:
•
•
•
•
competitive and reasonable, enabling the company to attract and retain key talent;
aligned to the company’s strategic and business objectives and the creation of shareholder value;
transparent and easily understood; and
acceptable to shareholders.
The maximum aggregate amount of fees that can be paid to Non-executive Directors is $950,000 as approved by
shareholders in July 2019. Fees for Non-executive Directors are not linked to the performance of the economic
entity. However, to align Directors’ interests with shareholder interests, the Directors are encouraged to hold
shares in the Company.
Executive directors and other senior executives
The remuneration policy for employees is developed by the Remuneration Committee taking into account market
conditions and comparable salary levels for companies of a similar size and operating in similar sectors.
The Board will make decisions regarding the remuneration of executive directors and senior management having
regard to various factors including performance and any recommendations made by the Managing Director/CEO,
senior management, compensation consultants and other advisors. The Board will also make a decision regarding
the remuneration of non executive directors having regard to, amongst other things, any recommendations made
by compensation consultants and other advisors.
The Company adopted a Employee Incentive Plan (“EIP”) for its staff, executive KMP and Non-executive Directors
on 19 June 2020. The board believes that the EIP will assist the Company in remunerating and providing ongoing
incentives to employees of the Company. The rules of the EIP enable the Company to issue shares, options or
performance rights to eligible personnel subject to performance and vesting conditions determined by the
Company.
All remuneration provided to KMP in the form of share based payments are valued pursuant to AASB 2 Share-Based
Payment at fair value on grant date and are expensed on a pro rata basis over the vesting period of the relevant security.
2 5
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
(c) Elements of remuneration
Remuneration for non executive directors may contain any or all of the following:
(i) annual fees - reflecting the value of the individuals’ personal performance, time commitment and
responsibilities of the role;
(ii) equity based remuneration - issues of shares or securities, reflecting the contribution of the Director towards
the Company’s medium and long term performance objectives; and
(iii) other benefits - superannuation payments, but not including retirement benefits that are additional to the
individual’s superannuation.
Remuneration for executive directors and other senior executives may incorporate fixed and variable pay
performance elements with both a short term and long term focus.
Remuneration packages may contain any or all of the following:
(i) annual base salary - reflecting the value of the individuals’ personal performance, their ability and experience,
as well as the Company’s obligations at law and labour market conditions and should be relative to the scale of
the business of the Company;
(ii) performance based remuneration - rewards, bonuses, special payments and other measures available to
reward individuals and teams following a particular outstanding business contribution having regard to clearly
specified performance targets and to the Company’s circumstances, values and risk appetite;
(iii) equity based remuneration - share participation via employee share and option schemes, reflecting the
Company’s short, medium and long term performance objectives;
(iv) other benefits - such as holidays, sickness benefits, superannuation payments and long service benefits;
(v) expense reimbursement - for any expenses incurred in the course of the personnel’s duties; and
(vi) termination payments - any termination payments should reflect contractual and legal obligations and will not
be made when an executive is removed for misconduct.
(d) Link between remuneration and performance
The table below sets out summary information about the Consolidated Entity’s earnings and movements in
shareholder wealth for the three years to June 2022.
Revenue
Net loss before tax
Net loss after tax
Share price at start of year
Share price at end of year
30 JUNE 2022
30 JUNE 2021
30 JUNE 2020
$
-
(14,210,882)
(14,210,882)
$/SHARE
$1.25
$0.26
$
-
(6,523,291)
(6,523,291)
$/SHARE
$0.30 1
$1.25
$
-
(3,937,764)
(3,937,764)
$/SHARE
-
-
Basic earnings per share
(0.14)
(0.09)
(0.12)
CENTS/SHARE
CENTS/SHARE
CENTS/SHARE
1. The Company listed on ASX on 28 October 2020 at $0.30 per share.
26
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
(e) KMP remuneration expenses
The KMP received the following amounts during the year as compensation for their services as directors and
executives of the Company.
SHORT-TERM EMPLOYEE BENEFIT
POST-
EMPLOYMENT
BENEFIT
SHARE BASED
PAYMENTS
2022
SALARY
& FEES
BONUS(v)
NON-
MONETARY(iii)
ANNUAL
LEAVE
MOVEMENT(ii)
SUPER-
ANNUATION
PERFOR-
MANCE
RIGHTS
OPTIONS
TOTAL
REMUNER-
ATION
LINKED TO
PERFOR-
MANCE
$
$
$
$
$
$
$
$
%
Non-executive directors
Keith F.
Jones
Andrew
Marshall
Colin
Moorhead(vi)
100,000
50,000
52,500
Paul Hallam
50,000
Zhu
Changjiang
-
252,500
Executive directors
-
-
-
-
-
-
Chris
Stevens
328,997
69,300
328,997
69,300
Other executives
Kudzai
Mtsambiwa(i)
184,385
28,927
184,385
28,927
-
-
-
-
-
-
3,600
3,600
2,791
2,791
-
-
-
-
-
-
10,000
5,000
2,500
5,000
-
22,500
-
-
-
-
-
-
28,000
138,000
9,333
64,333
9,333
64,333
9,333
64,333
-
-
55,999
330,999
-
-
-
-
-
16,449
16,449
23,568
23,568
52,369
28,000
522,283
23%
52,369
28,000
522,283
9,182
9,182
17,796
17,796
-
-
-
-
243,081
243,081
12%
Total
Notes:
765,882
98,227
6,391
25,631
63,864
52,369
83,999
1,096,363
(i) Mr Mtsambiwa was appointed Chief Financial Officer on 20 September 2021.
(ii) The amounts disclosed represent the movement in the associated annual leave provision balances. The value may be negative when an
Executive resigns or takes more leave than the entitlement accrued during the year.
(iii) Non-monetary benefits relate to office car parking.
(iv) Mr Zhu Changjiang resigned on 31 August 2021.
(v) The FY22 bonus was approved by the Remuneration Committee in June 2022 following analysis of attainment of KPIs against criteria
set. Bonuses for eligible employees are based on a percentage of Total Fixed Remuneration (TFR) and assessed against companywide
criteria. During the FY22 period, the CEO was eligible for a cash bonus of up to 33% of TFR and the CFO was eligible for a cash bonus of
up to 25% of TFR. During the FY22 period, the cash bonus paid to the CEO was 20% of TFR and the cash bonus paid to the CFO was 14%
of TFR.
(vi) Mr Moorhead received a superannuation guarantuee employer shortfall exemption certificate from the Australian Taxation Office and
as such the shortfall in superannuation was paid as directors fees.
2 7
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
FY22 KPIs were set based on the following criteria:
AREA
THRESHOLD
50%
TARGET
75%
EXCEED
100%
WEIGHT
1. Safety,
Environment
and Heritage
76-100% Construction and
Mining Industry benchmark
LTIFR.
51-75% Construction and Mining
Industry benchmark LTIFR.
≤50% Construction and Mining
Industry benchmark LTIFR.
2. Adherence
to Budget
Adherence to approved
FY22 budget with utilisation
of contingency and minor
overruns or variations.
Adherence to FY22 budget
with strong budgetary controls
and no material overruns or
material variations.
3. Share Price
Share price performance in
top 50% of selected basket of
peers.
Share price performance in
top 75% of selected basket of
peers.
4. Organic
Development
Completion of material key
inputs to Copper-Cobalt (or
integrated system) scoping
study.
5. Corporate
Material progress on board
aligned strategy with takeover
of Torrens Mining.
Delivery of all key inputs to
Copper-Cobalt (or integrated
system) scoping study with
board approved go-forward
case.
Completion of board aligned
strategy with takeover of
Torrens Mining to unconditional
offer stage.
Board assesses budgetary
control to be beyond
expectations and with clear
overperformance and/ or cost
savings identified.
Share price growth resulting
in an enterprise value > 300%
of listing value and being in top
quartile of peers.
Delivery of Copper-Cobalt (or
integrated system) scoping
study with board approved go-
forward case with NPV: Capex
ratio greater than 1.5:1.
Completion of board aligned
strategy with takeover of
Torrens Mining to unconditional
offer stage with no changes to
conditions and no budgetary
overruns.
6. Exploration
Completion of board approved
drilling programmes at
Cameron River, Emmie East &
Elaine within time and budget.
Material discovery at Cameron
River, Elaine, or Emmie East
identifying >15% increase to
existing copper inventory.
Material discovery at Cameron
River, Elaine, or Emmie East
identifying >25% increase to
existing copper inventory.
10%
20%
30%
20%
10%
10%
In June 2022 the board passed and approved the payment of bonus against the KPIs as follows:
AREA
KPI
KPI Weighting
Award Recommended
Award % Recommended
1
2
3
4
5
6
Safety
10%
Exceed
100%
Budget
Share Price
Organic
Development
Corporate
Exploration
20%
Target
100%
30%
20%
Target
Threshold
33%
50%
10%
Target
100%
10%
Nil
0%
2 8
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
SHORT-TERM EMPLOYEE BENEFIT
POST-
EMPLOYMENT
BENEFIT
SHARE BASED
PAYMENTS
2021
SALARY
& FEES
BONUS(iv)
NON-
MONETARY(iii)
ANNUAL
LEAVE
MOVEMENT(ii)
SUPER-
ANNUATION
PERFOR-
MANCE
RIGHTS
OPTIONS
TOTAL
REMUNER-
ATION
LINKED TO
PERFOR-
MANCE
$
$
$
$
$
$
$
$
%
Non-executive directors
Keith F.
Jones
Andrew
Marshall
Colin
Moorhead
100,000
50,000
50,000
Paul Hallam
50,000
Zhu
Changjiang
-
250,000
Executive directors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,500
4,750
4,750
4,750
-
23,750
Chris
Stevens
328,997
114,712
328,997
114,712
3,600
3,600
13,918
13,918
21,694
21,694
Other executives
Telma
Southgate(i)
Total
Notes:
78,032
78,032
-
-
-
-
(4,512)
(4,512)
6,485
6,485
657,029
114,712
3,600
9,406
51,929
-
-
-
-
-
-
-
-
-
-
-
27,815
137,315
9,271
64,021
9,271
64,021
9,271
64,021
-
-
55,628
329,378
-
-
-
-
-
27,815
510,736
22%
27,815
510,736
-
-
80,005
80,005
-
83,443
920,119
(i) Ms Southgate served as Company Secretary until her resignation on 25 November 2020 and Chief Financial Officer until her resignation
on 16 December 2020.
(ii) The amounts disclosed represent the movement in the associated annual leave provision balances. The value may be negative when an
Executive resigns or takes more leave than the entitlement accrued during the year.
(iii) Non-monetary benefits relate to office car parking.
(iv) The FY21 bonus was approved by the Remuneration Committee in June 2021 following analysis of attainment of KPIs against criteria set
in November 2020. Bonuses for eligible employees are based on a percentage of Total Fixed Remuneration (TFR) and assessed against
companywide criteria. During the FY21 period, the CEO was eligible for a cash bonus of up to 23% of TFR.
2 9
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
FY21 KPIs were set in November 2020 based on the following criteria:
AREA
THRESHOLD
50%
TARGET
75%
EXCEED
100%
WEIGHT
1. Safety,
Environment
and Heritage
76-100% Construction and
Mining Industry benchmark
LTIFR.
51-75% Construction and Mining
Industry benchmark LTIFR.
≤50% Construction and Mining
Industry benchmark LTIFR.
2. Adherence
to Budget
Adherence to approved
FY21 budget with utilisation
of contingency and minor
overruns or variations.
Adherence to FY21 budget
with strong budgetary controls
and no material overruns or
material variations.
3. Share Price
Share price performance in
top 50% of selected basket of
peers.
Share price performance in
top 75% of selected basket of
peers.
Board assesses budgetary
control to be beyond
expectations and with clear
overperformance and/ or cost
savings identified.
Share price growth resulting
in an enterprise value > 300%
of listing value and being in top
quartile of peers.
4. Business
Development
Material progress towards a
maiden resource at Emmie
Bluff.
Material progression towards
a maiden resource at Emmie
Bluff deliverable in CY21 and
IOCG targeting or discovery.
Material progression of a
material maiden resource at
Emmie Bluff and/ or a material
IOCG based discovery.
10%
20%
40%
30%
In June 2021 the board passed and approved the payment of bonus against the KPIs as follows:
AREA
KPI
KPI Weighting
Award Recommended
Award % Recommended
Eligible for Enhanced Award*
1
Safety
10%
Exceed
100%
Yes
2
Budget
20%
Target
75%
Yes
3
Share Price
40%
Exceed
100%
Yes
4
Business
Development
30%
Exceed
100%
Yes
* Following suspension of the FY20 Short Term Incentive Plan, the Board resolved to pay FY21 cash bonus incentives at 1.5 times base level
for any KPIs attained at >75% attainment. Consequently, the FY 21 cash bonus was increased by 1.5 times base level for eligible employees
employed for the whole of the FY20 tax year to compensate for previously forgone bonus payments.
30
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
(f) KMP contractual arrangements
Executive directors and other executives
COMPONENT
EXECUTIVE DIRECTOR – CHRIS STEVENS
OTHER EXECUTIVE – KUDZAI MTSAMBIWA
Fixed remuneration (pa)
$ 328,997 exclusive of superannuation
$ 235,000 exclusive of superannuation
Contract duration
Ongoing contract
Notice by the
individual/company
6 weeks’ notice (individual)
6 weeks’ notice plus 3 months remuneration
(Company).
Ongoing contract
12 weeks
Termination of
employment
(without cause)
Entitlement to pro-rata STI for the year.
Unvested LTI will remain on foot subject to achievement of the performance hurdles at the original
date of testing.
The Board has discretion to award a greater or lower amount.
STI is not awarded, and all unvested LTI will lapse.
Vested and unexercised LTI can be exercised within a period of 30 days from termination.
Termination of
employment (with cause)
or by the individual
Non-executive directors
COMPONENT
Board base fees (pa)
Additional fees (pa):
Audit & Risk Management Committee
Remuneration & Nomination Committee
-
-
CHAIR
$100,000
MEMBER
$50,000
-
-
All non-executive directors enter into a service agreement with the company in the form of a letter of appointment.
The letter summarises the board policies and terms, including remuneration, relevant to the office of director.
Superannuation paid at the legislated rate is excluded from base directors fees and where a director has a
superannuation guarantuee employer shortfall exemption certificate from the Australian Taxation Office, the
shortfall in superannuation is paid as directors fees.
(g) KMP share holding
Details of fully paid ordinary shares held by KMP during the financial year is set out below:
GRANTED
AS
COMPEN-
SATION
RECEIVED
ON
EXERCISE
OF OPTIONS
PURCHASES
ENTITLE-
MENT
OFFER
PURCHASES
IPO
NET
OTHER
CHANGE
CLOSING
BALANCE
2022
OPENING
BALANCE
Non-executive directors
Keith F. Jones
7,110,801
Andrew Marshall
229,293
Colin Moorhead
500,000
Paul Hallam
1,248,888
Zhu Changjiang
-
Executive directors
Chris Stevens
338,920
Other executives
Kudzai
Mtsambiwa
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1. Shares held as at the date of Mr Zhu Changjiang resignation, 31st August 2021.
-
-
-
-
-
-
-
7,110,801
229,293
500,000
1,248,888
-1
338,920
-
31
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
2021
OPENING
BALANCE
Non-executive directors
Keith F. Jones
2,370,267
Andrew Marshall
20,873
Colin Moorhead
Paul Hallam
Zhu Changjiang
-
116,111
-
Executive directors
Chris Stevens
138,889
Other executives
Telma Southgate
-
GRANTED
AS
COMPEN-
SATION
RECEIVED
ON
EXERCISE
OF OPTIONS
PURCHASES
ENTITLE-
MENT
OFFER1
PURCHASES
IPO
NET
OTHER
CHANGE
CLOSING
BALANCE
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,740,534
-
191,746
16,674
500,000
1,132,777
-
200,031
100,000
-
-
-
-
-
-
-
-
-
-
-
-
7,110,801
229,293
500,000
1,248,888
-
338,920
100,0002
1. 2/3 shares purchased under entitlement offer are subject to escrow. 4,498,928 are held in escrow until 28 October 2022.
2. Shares held as at the date of Ms Southgate resignation, 16th December 2020.
Options
No options were granted to directors or KMP during the 30 June 2022 financial year.
The following tables summarises information relevant to options held by directors and KMP as at 30 June 2022.
NAME
GRANT DATE
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
3/7/2020
3/7/2020
3/7/2020
3/7/2020
-
NUMBER
GRANTED
NUMBER
VESTED
FAIR VALUE
AT GRANT DATE
($)
EXERCISE
DATE
2,000,000
2,000,0001
666,666
666,667
666,667
-
666,6661
666,6671
666,6671
-
112,000
37,333
37,333
37,333
-
3/7/2024
3/7/2024
3/7/2024
3/7/2024
-
Chris Stevens
3/7/2020
2,000,000
2,000,0001
112,000
3/7/2024
Other executives
Kudzai Mtsambiwa
-
-
-
-
-
1. All Options have an exercise price of $0.2145, an expiry date of 3 July 2024 and are subject to escrow until 28 October 2022.
The options vested in tranches as follows:
1/3 of the options vested upon reaching a share price of $0.23 in the 30 June 2021 financial year.
1/3 of the options vested upon reaching a share price of $0.27 in the 30 June 2021 financial year.
1/3 of the options vested upon reaching a share price of $0.30 in the 30 June 2021 financial year.
32
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
Details of the movement in options held by directors and KMP during the financial year is set out below:
2022
Non-executive directors
OPENING
BALANCE
VESTED
DURING PERIOD
EXPIRED
DURING PERIOD
NET OTHER
CHANGE
CLOSING
BALANCE
Keith F. Jones
2,000,000
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
666,666
666,667
666,667
-
Chris Stevens
2,000,000
Other executives
Kudzai Mtsambiwa
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
666,666
666,667
666,667
-1
2,000,000
-
-
-
-
-
-
-
1. Options held as at the date of Mr Zhu Changjiang resignation, 31st August 2021.
2021
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
Chris Stevens
Other executives
Telma Southgate
OPENING
BALANCE
VESTED
DURING PERIOD
EXPIRED
DURING PERIOD
NET OTHER
CHANGE
CLOSING
BALANCE
-
-
-
-
-
2,000,0001
666,6661
666,6671
666,6671
-
-
2,000,0001
-
2,000,0001
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
666,666
666,667
666,667
-
2,000,000
2,000,0002
1. All Options have an exercise price of $0.2145, an expiry date of 3 July 2024 and are subject to escrow until 28 October 2022.
The options vested in tranches as follows:
1/3 of the options vested upon reaching a share price of $0.23 in the 30 June 2021 financial year.
1/3 of the options vested upon reaching a share price of $0.27 in the 30 June 2021 financial year.
1/3 of the options vested upon reaching a share price of $0.30 in the 30 June 2021 financial year.
2. Options held as at the date of Ms Southgate resignation, 16th December 2020.
33
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
REMUNERATION REPORT – AUDITED
FOR THE YEAR ENDED 30 JUNE 2022
Performance rights
The following tables summarises information relevant to performance rights held by directors and KMP as at 30
June 2022.
NUMBER
GRANTED
NUMBER
VESTED
FAIR VALUE
AT GRANT DATE
($)
EXERCISE
DATE
NAME
GRANT DATE
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
-
-
-
-
-
-
-
-
-
-
Chris Stevens
19/11/2021
103,246
Other executives
Kudzai Mtsambiwa
-
-
-
-
-
-
-
-1
-
-
-
-
-
-
-
-
-
-
-
85,694
19/11/2026
-
-
1. Performance rights have an exercise price of nil and an expiry date of 19 November 2026.
The options vested in tranches as follows:
1/3 of the performance rights vested on 1 July 2022.
1/3 of the performance rights vest on 1 July 2023.
1/3 of the performance rights vest on 1 July 2024.
Details of the movement in performance rights held by directors and KMP during the financial year is set out below:
2022
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
Chris Stevens
Other executives
Kudzai Mtsambiwa
OPENING
BALANCE
ISSUED
DURING PERIOD
EXPIRED
DURING PERIOD
NET OTHER
CHANGE
CLOSING
BALANCE
-
-
-
-
-
-
-
-
-
-
-
-
103,246
-
-
-
-
-
-
-
-
-
-
-
-
-1
103,2462
-
-
-
-
-
-
-
1. Performance rights held as at the date of Mr Zhu Changjiang resignation, 31st August 2021.
2. None of the performance rights issued had vested as at 30 June 2022.
1/3 of the performance rights vested on 1 July 2022.
No performance rights were granted to directors or KMP during the 30 June 2021 financial year.
END OF AUDITED REMUNERATION REPORT.
34
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
SHARE OPTIONS AND PERFORMANCE RIGHTS
Unissued shares under option
At the date of this financial report unissued ordinary shares of the Company under option are:
Tranche
Number of Options
Expiry date
Exercise Price
Vesting Condition
A
B
C
2,000,000
2,000,000
2,000,000
3 July 2024
3 July 2024
3 July 2024
$0.2145
$0.2145
$0.2145
Upon reaching a share price of $0.23
Upon reaching a share price of $0.27
Upon reaching a share price of $0.30
All options are employee options and vesting is subject to the option holder maintaining continuous employment with
the Company. Should option holders resign, the Board may at its discretion waive the vesting condition relating to the
requirement to remain a Director of the Company and allow the option holder to continue to hold the options following
resignation.
The above options do not entitle the holder to participate in any potential share issue of the Company.
Shares issued on exercise of options
During the financial year, the Company has issued nil ordinary shares as a result of the exercise of options.
Unissued shares under performance rights
At the date of this financial report unissued ordinary shares of the Company under performance rights are:
Number of
Performance
Rights
Tranche
Expiry date
Exercise
Price
Vesting Condition
A
B
C
103,246
19 November 2026
Nil
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2022
1/3 vest after continuous employment to 1 July 2024
1/3 vest after continuous employment to 1 July 2022
3,366
22 December 2026
Nil
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2024
1/3 vest after continuous employment to 1 July 2022
46,174
23 December 2026
Nil
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2024
All performance rights are employee performance rights and vesting is subject to the performance rights holder
maintaining continuous employment with the Company. Should performance rights holders resign, the Board may at its
discretion waive the vesting condition relating to the requirement to remain an employee of the Company and allow the
performance rights holder to continue to hold the performance rights following resignation.
The above performance rights do not entitle the holder to participate in any potential share issue of the Company.
Shares issued on exercise of performance rights
During the financial year, the Company has issued nil ordinary shares as a result of the exercise of performance rights.
35
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
AUDIT AND NON-AUDIT SERVICES
Details of the amounts paid to the auditor of the Company, Deloitte Touche Tohmatsu, and its related practices for audit
and non-audit services provided during the period are set out below:
Auditors of the Company – Deloitte Touche Tohmatsu
Deloitte and related network firms
Audit and review of financial reports
30 June 2022
$
30 June 2021
$
55,300
39,863
Other assurance and agreed-upon procedures under other legislation or
contractual arrangements
-
-
Other services - Tax consulting services
77,242
14,777
Other auditors and their related network firms
Audit and review of financial reports
Other assurance and agreed-upon procedures under other legislation or
contractual arrangements
Other services - Tax consulting services
Auditor’s Remuneration
19,000
-
-
-
-
-
151,542
54,640
36
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
INDEMNIFICATION AND INSURANCE - OFFICER OR AUDITOR
During the financial year, the Company has indemnified each of the Directors and Officers against all liabilities incurred
by them as Directors or Officers of the Company and all legal expenses incurred by them as Directors or Officers of the
Company.
The indemnification is subject to various specific exclusions and limitation.
The Directors and Officers of the Company have been insured against all liabilities and expenses arising as a result of
work performed in their respective capacities, to the extent permitted by law. The contract of insurance prohibits the
disclosure of the amount of the insurance premiums paid during the year ended 30 June 2022.
The Company did not provide any insurance or indemnification for the auditors of the Company.
LEAD AUDITOR’S INDEPENDENCE DECLARATION
In accordance with section 307C of the Corporations Act 2001, the directors received the attached Independence
Declaration set out on page 16 and forms part of the Directors’ Report for the year ended 30 June 2022.
Signed in accordance with a resolution of Directors at Perth, WA on 28 September 2022.
K F Jones
Director
37
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 AU D I T O R ’ S I N D E P E N D E N C E D EC L A R AT I O N
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Auditor’s Independence Declaration to Coda Minerals Ltd
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Coda Minerals Ltd.
As lead audit partner for the audit of the financial report of Coda Minerals Ltd for the year ended 30 June 2022,
I declare that to the best of my knowledge and belief, there have been no contraventions of:
• The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• Any applicable code of professional conduct in relation to the audit.
Yours faithfully
28 September 2022
The Board of Directors
Coda Minerals Ltd
6 Altona Street
West Perth WA 6005
Dear Board Members
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
38
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
28 September 2022
The Board of Directors
Coda Minerals Ltd
6 Altona Street
West Perth WA 6005
Dear Board Members
Auditor’s Independence Declaration to Coda Minerals Ltd
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Coda Minerals Ltd.
As lead audit partner for the audit of the financial report of Coda Minerals Ltd for the year ended 30 June 2022,
I declare that to the best of my knowledge and belief, there have been no contraventions of:
• The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• Any applicable code of professional conduct in relation to the audit.
Yours faithfully
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
39
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
INDEPENDENT AUDITOR ’S REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Independent Auditor’s Report to the members of Coda
Minerals Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Coda Minerals Ltd (the “Company”) and its subsidiaries (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:
• 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
• 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 & 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report for 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.
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
40
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
INDEPENDENT AUDITOR ’S REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Key Audit Matter
Accounting
Evaluation Assets
for
How the scope of our audit responded to the Key Audit Matter
the Exploration and
Our procedures included, but were not limited to:
• assessing the relevant controls associated with the
identification of indicators of impairment; and
As at 30 June 2022, the carrying value of
exploration and evaluation assets are
$17.93 million (2021: $1.69 million) as
disclosed in Note 13.
• evaluating management’s impairment indicator assessment,
including whether any of the following events exist at the
reporting date which may
indicate that exploration and
evaluation assets may not be recoverable by:
judgement
is applied
Significant
in
determining the treatment of exploration
and evaluation expenditure in relation to
and
determining
whether
circumstances
the
exploration and evaluation assets should
be tested for impairment in accordance
with Australian Accounting Standard AASB
6 Exploration for and Evaluation of Mineral
Resources.
facts
that
indicate
Accounting to the acquisition of Torrens
Mining Limited
On 8 April 2022 the Group gained control
of Torrens Mining Limited (Torrens), with
100% control obtained on 2 June 2022
following completion of the compulsory
acquisition process.
This acquisition was completed for a total
consideration of $17.88 million as
disclosed in note 20.
Accounting for this acquisition requires
judgement to determine if this was a
business
asset
combination or
acquisition, the fair value of consideration
paid and the allocation of the purchase
price to assets acquired.
an
This is a key audit matter due to the
significance of the acquisition and impact
on the Group’s statement of financial
position.
•
•
•
obtaining a schedule of the areas of interest held by
the Group and confirming whether the rights to
tenure of those areas of interest remained current at
balance date;
inquiring of management as to the status of ongoing
exploration programmes in the respective areas of
interest, and reviewing announcements made by the
Group to corroborate these inquiries; and
assessing whether any facts or circumstances existed
to suggest impairment testing was required.
We also assessed the appropriateness of the disclosures in Note
13 in the financial statements.
Our procedures included, but were not limited to:
•
obtaining an understanding of
the key controls
management has in place with respect to the accounting for
this transaction;
• Reviewing the Bid Implementation Deed to understand key
the elements of
including
terms and conditions,
consideration payable under the agreement;
assessing the nature of the transaction with regards to the
requirements of AASB 3 Business Combinations to conclude
on the appropriateness of the acquisition being accounted
for as an asset acquisition, as opposed to a business
combination;
assessing the reasonableness of the acquisition date, being
the date that Coda obtained control over Torrens;
assessing the determination of the fair value of the total
consideration paid and relative fair value of assets acquired
and liabilities assumed;
testing, on a sample basis, transaction costs capitalised to
confirm the nature and valuation of the costs incurred, and
the appropriateness of the classification as transaction
costs capitalised to the acquired assets; and
testing the mathematical accuracy of the calculations
prepared by management.
•
•
•
•
•
We also assessed the appropriateness of the disclosures in Note
20 in the financial statements
41
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
Other Information
The directors are responsible for the other information. The other information comprises the Directors’ Report
and Remuneration Report, which we obtained prior to the date of this auditor’s report, and also includes the
following information which will be included in the Group’s annual report (but does not include the financial
report and our auditor’s report thereon): Chairman’s Letter and Operational update report, additional ASX
disclosures and Shareholder information, which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not and will 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 identified
above 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 on the other information that we obtained prior to the date of this auditor’s report, 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.
When we read the Chairman’s Letter and Operational update report, additional ASX disclosures and Shareholder
information, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to the directors and use our professional judgement to determine the appropriate action.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
42
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 13 of the Directors’ Report for the year ended
30 June 2022.
In our opinion, the Remuneration Report of Coda Minerals Ltd, for the year ended 30 June 2022, complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Perth, 28 September 2022
43
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
D I R EC T O R S ’ D EC L A R AT I O N
44
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 DIRECTORS ’ DECL ARATION
FOR THE YEAR ENDED 30 JUNE 2022
1.
In the opinion of the directors of Coda Minerals Ltd (“the Company”):
(a)
the financial statements and notes, are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the financial position of the Company as at 30 June 2022 and of its
performance, for the financial period ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2.
3.
The directors have been given the declarations required by section 295A of the Corporations Act 2001 for the
financial year ended 30 June 2022.
The Directors draw attention to Note 2(a) to the financial statements, which include a statement of compliance with
International Financial Reporting Standards.
Dated at Perth this 28th day of September 2022.
Signed in accordance with a resolution of the directors.
KF Jones
Director
45
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Other income
Administration expenses
Exploration & evaluation expenses
Corporate finance expenses
Other expenses
Results from operating activities
Finance income
Finance expenses
Loss before income tax
Income tax benefit / (expense)
NOTE
5
5 (a)
5 (b)
5 (c)
5 (d)
5
5 (e)
7
30 JUNE 2022
30 JUNE 2021
$
791,996
(3,254,014)
(11,420,307)
(188,360)
(183,272)
$
37,500
(2,135,524)
(3,991,793)
(311,799)
(122,134)
(14,218,215)
(6,523,750)
13,950
(6,617)
8,682
(8,222)
(14,210,882)
(6,523,291)
-
-
Loss for the period attributable to owners of the parent
(14,210,882)
(6,523,291)
Other comprehensive income
-
-
Total comprehensive (loss) for the period attributable
to owners of the parent
(14,210,882)
(6,523,291)
Earnings per share
Basic and diluted (loss) per share
24
(0.14)
(0.09)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction
with the notes to the financial statements. Refer to Note 2 on basis of preparation.
46
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDTAED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
CURRENT ASSETS
Cash and cash equivalents
Receivables
Assets classified as held for sale
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration licence bonds
Property, plant and equipment
Intangible assets
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefits
Lease liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Capital contribution reserve
Share based payment reserve
Accumulated losses
TOTAL EQUITY
30 JUNE 2022
30 JUNE 2021
NOTE
$
$
8
9
10
9
11
12
13
15
16
17
17
18
19
19
8,178,668
171,015
559,250
233,564
9,142,497
95,000
305,097
131,220
17,926,175
18,457,492
21,787,110
179,968
-
69,038
22,036,116
55,000
280,229
144,552
1,686,359
2,166,140
27,599,989
24,202,256
1,426,773
197,359
98,400
1,722,532
-
-
927,299
101,070
98,268
1,126,637
91,786
91,786
1,722,532
1,218,424
27,877,457
22,983,832
40,229,393
12,040,106
611,859
(27,003,901)
27,877,457
23,473,301
12,040,106
263,444
(12,793,019)
22,983,832
The consolidated statement of financial position is to be read in conjunction with the notes to the financial statements.
Refer to Note 2 on basis of preparation.
47
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDTAED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
ISSUED
CAPITAL
$
CAPITAL
CONTRIBUTION
RESERVE
SHARE BASED
PAYMENTS
RESERVE
ACCUMULATED
LOSSES
TOTAL
$
$
$
Year ended 30 June 2022
Opening balance at 1 July 2021
23,473,301
12,040,106
263,444
(12,793,019)
22,983,832
Loss for the year
-
-
-
(14,210,882)
(14,210,882)
Total comprehensive loss for the year
23,473,301
12,040,106
263,444
(27,003,901)
8,722,950
Issue of ordinary shares consideration
on acquisition of Torrens Mining Limited
(refer note 20)
Share based payment consideration on
acquisition of Torrens Mining Limited
(refer note 20)
Share based payments to Directors
and Employees
16,756,092
-
-
-
-
-
Closing balance at 30 June 2022
40,229,393
12,040,106
-
185,467
162,948
611,859
-
-
-
16,756,092
185,467
162,948
(27,003,901)
25,877,457
Year ended 30 June 2021
Opening balance at 1 July 2020
Loss for the year
Total comprehensive loss for the year
Share based payments to Directors and
Employees
Share based payment consideration –
Cameron River Farm-in
1,000
-
1,000
-
-
Shares issued under non-renounceable
entitlement offer
1,011,716
Shares issued under non-renouncement
entitlement offer
1,360,304
Shares issued under initial public offer
8,500,000
Shares issued under a Placement
14,400,000
Consideration Shares – Cameron River
Farm-in
Share issue costs
90,000
(1,889,719)
12,040,106
-
12,040,106
-
-
-
(6,269,729)
5,771,377
(6,523,291)
(6,523,291)
(12,793,020)
(751,913)
-
-
-
-
-
-
-
-
83,444
180,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
83,444
180,000
1,011,716
1,360,304
8,500,000
14,400,000
90,000
(1,889,719)
Closing balance at 30 June 2021
23,473,301
12,040,106
263,444
(12,793,020)
22,983,832
The consolidated statement of changes in equity is to be read in conjunction with the notes to the financial statements.
Refer to Note 2 on basis of preparation.
48
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDTAED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
30 JUNE 2022
30 JUNE 2021
NOTE
$
$
Cash flows from operating activities
Proceeds from government grants and tax incentives
Payments for exploration and evaluation expenditure
Payments for administration, corporate finance activities and other
expenditure
Net cash used in operating activities
5
26
791,996
(12,322,615)
(2,815,944)
(14,346,563)
Cash flows from investing activities
Interest received
Payments for property, plant & equipment
Cash acquired, net of payments for the acquisition of subsidiary
Net cash inflow / (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments associated with the issue of shares
Repayment of lease liabilities
Net cash (outflow) / inflow from financing activities
13,950
(86,254)
901,252
828,948
-
-
(90,827)
(90,827)
(4,149,924)
(1,400,134)
(5,550,058)
8,682
(248,075)
-
(239,393)
25,362,020
(1,889,719)
(88,035)
23,384,266
Net (decrease) / increase in cash and cash equivalents
(13,608,442)
17,594,815
Cash and cash equivalents at beginning of the year
21,787,110
4,192,295
Cash and cash equivalents at the end of the year
8
8,178,668
21,787,110
The consolidated statement of cash flows is to be read in conjunction with the notes to the financial statements.
Refer to Note 2 on basis of preparation.
49
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 C O N S O L I D AT E D N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
50
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. REPORTING ENTITY
Coda Minerals Ltd (the ‘Company’ or ‘Coda’) is a company domiciled in Australia and listed on the Australian Securities
Exchange ‘ASX’ (ASX:COD). The address of the Company’s registered office is 6 Altona Street, West Perth. The financial
statements of Coda as at and for the year ended 30 June 2022 comprise the Company and its subsidiaries’ (‘the Group’)
results.
The Company is a for-profit entity primarily involved in the exploration and evaluation of mineral resources.
2. BASIS OF PREPARATION
a) Statement of compliance
These financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (“AAS”) adopted and other authoritative pronouncements issued by the
Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. The financial statements comply
with International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board
(“IASB”).
The financial statements were authorised for issue by the Directors on the 28th September 2022.
b) Basis of preparation
The financial statements have been prepared on the historical cost basis where cost is based on the fair value of the
consideration given in exchange for assets. All amounts are presented in Australian dollars unless otherwise noted.
c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company (its subsidiaries). Control is achieved when the Group has power over an entity and is exposed to, or
has rights over, the variable returns of the entity, as well as the ability to use this power to affect the variable returns
of the entity.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement
from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary,
adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with
those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an
equity transaction.
If the Group loses control over a subsidiary, it:
• derecognises the assets (including goodwill) and liabilities of the subsidiary;
• derecognises the carrying amount of any non-controlling interest;
•
•
•
•
recognises the fair value of the consideration received;
recognises the fair value of any investment retained;
recognises any surplus or deficit in profit or loss; and
reclassifies to profit or loss or transfers directly to retained earnings, as appropriate, the parent’s share of
components previously recognised in other comprehensive income.
51
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
d) Going concern
The Directors believe that the Group will continue as a going concern, and as a result the financial information has
been prepared on a going concern basis, which contemplates the continuity of normal business activity and the
realisation of assets and the settlement of liabilities in the normal course of business.
As at 30 June 2022, the Group had cash and cash equivalents of $8,178,668 and a net asset position of $27,877,457
compared to 30 June 2021, when it had cash and cash equivalents of $21,787,110 and a net asset position of
$22,983,832. For the year ended 30 June 2022, the Group recorded a loss of $14,210,882 and experienced operating
cash outflows of $14,346,563. For the period ended 30 June 2021, the Group recorded a loss of $6,523,291 and
experienced net operating cash outflows of $5,550,058.
The Directors believe that, based on current conditions and performance assumptions, that the Group is sufficiently
funded to meet its anticipated near-term funding needs, including required expenditure under the Elizabeth Creek
Copper Cobalt Project and Cameron River Project over the next 12 months.
e) Use of estimates and judgements
The preparation of financial statements in conformity with AASB requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected.
Information about critical judgements in applying accounting policies that have the most significant effect on the
amounts recognised in the financial statements is included in Note 13 – Exploration and evaluation.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment within the next financial period are included in the notes if applicable. There were no significant
estimations of useful life for the current reporting period.
f) Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial
and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure
purposes based on the following methods. Where applicable, further information about the assumptions made in
determining fair values is disclosed in the notes specific to that asset or liability.
g) Goods and services tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office (‘ATO’). In these circumstances the GST is recognised as part of the
cost of acquisition of the asset or as part of an item of the expense.
Cash flows are presented in the statement of cash flows on a gross basis.
h) Functional and presentation currency
These financial statements are presented in Australian dollars, which is the Group’s functional currency.
i) COVID-19
The ongoing COVID-19 pandemic affecting Australia and the world has had a limited impact on the Group’s operations
with restrictions on interstate travel and challenges associated with maintaining government recommended social
distancing practices being the key areas the Company has had to consider. Although these factors have the potential
to impact the Group’s ability to undertake fieldwork safely and cost effectively, the impact to date has been limited
during all field programmes. The Group’s COVID-19 management plan has been established to address the ongoing
potential future impact. The Company will continue to monitor and manage the impact on its operations.
52
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
3. SIGNIFICANT ACCOUNTING POLICIES
Significant and other accounting policies that summarise the measurement basis used and which are relevant to
an understanding of the financial statements are provided throughout the notes to the financial statements. Where
possible, wording has been simplified to provide clearer commentary on the financial report of the Group. Accounting
policies determined non-significant are not included in the financial statements.
4. SEGMENT INFORMATION
Accounting policy
An operating segment is a component of the Group that engages in business activities from which it may incur expenses.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
exploration expenditure. Management has determined the operating segments based on the reports reviewed by the
Board of Directors that are used to make strategic decisions.
For management purposes, the Group has identified five reportable segments relating to exploration activities in the
following business segments: the Elizabeth Creek Copper Cobalt project, the Cameron River Copper Gold project, the
Club Terrace Gold project, the Mt Piper Gold project and the Laloki – Rigo Copper Gold project. The business segments
include the activities associated with the determination and assessment of the existence of commercial reserves, from
the Group’s mineral assets that fall under those projects.
The following is an analysis of the Group’s results by reportable operating segment for the full year under review:
Operating segment results
Elizabeth Creek
Cameron River
Club Terrace
Mount Piper
Laloki – Rigo
30 JUNE 2022
30 JUNE 2021
$
$
(10,665,905)
(671,400)
(18,008)
(51,310)
(13,684)
(3,948,715)
(43,048)
-
-
-
Total Exploration & Evaluation Expenses
(11,420,307)
(3,991,793)
Reconciliation of segment result to net loss:
Other income
Administration costs
Other corporate costs
Finance income
Finance costs
Loss before tax
Income tax expense
Consolidated loss for the period
791,996
(3,254,014)
(335,890)
13,950
(6,617)
37,500
(2,135,524)
(433,934)
8,682
(8,222)
(14,210,882)
(6,523,291)
-
-
(14,210,882)
(6,523,291)
53
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
4. SEGMENT INFORMATION (continued)
Accounting policy
The following is an analysis of the Group’s assets and liabilities by reportable operating segment:
30 JUNE 2022
30 JUNE 2021
$
$
Segment assets
Elizabeth Creek
Cameron River
Club Terrace
Mount Piper
Laloki – Rigo
Segment liabilities
Elizabeth Creek
Cameron River
Club Terrace
Mount Piper
Laloki – Rigo
Total segments
Unallocated assets1
Unallocated liabilities2
Consolidated assets and liabilities
Included in segment assets are:
Additions to non-current assets
Elizabeth Creek
Cameron River
Club Terrace
Mount Piper
Laloki – Rigo
Total segments
Unallocated additions3
Consolidated additions to non-current assets
Notes:
18,927,027
306,900
10,654
569,920
20,881
(835,255)
(4,000)
-
(30,032)
(11,275)
18,954,820
7,822,982
(900,345)
25,877,457
15,643,666
36,900
-
559,250
-
16,239,816
159,065
16,398,881
1. Unallocated assets predominately relate to cash and cash equivalents
2. Unallocated liabilities relate to lease liabilities, employee benefits and trade and other payables
3. Unallocated additions relate to right of use asset for office lease and office equipment, fixtures and fittings
3,467,491
270,000
-
-
-
(556,751)
(9,700)
-
-
-
3,171,040
20,464,764
(651,973)
22,983,832
-
270,000
-
-
-
270,000
246,910
516,910
54
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
5. REVENUE, OTHER INCOME AND EXPENSES
Accounting policy
Revenue is measured at the fair value of the gross consideration received or receivable. The Group recognises revenue
when the amount of revenue can be reliably measured, and when it is probable that future economic benefits will flow to
the entity.
Finance income
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the
effective interest method.
Finance income
Interest income
Other income
Government cash flow boost(i)
Research and development tax incentive(ii)
Notes:
30 JUNE 2022
30 JUNE 2021
$
$
13,950
8,682
-
791,996
37,500
-
(i) The Company benefited from the government’s temporary Cash Flow Boost support package designed to assist businesses manage
cashflow challenges and help retain employees during the economic downturn associated with COVID-19 in the prior financial year.
Refer Note 2 Accounting Policies.
(ii) The company received a research and development tax offset refund from the Australian Tax Office (“ATO”) during the 30 June 2022
financial year under the ATO’s research and development tax incentive scheme.
5 5
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
5. REVENUE, OTHER INCOME AND EXPENSES (continued)
Accounting policy
Finance expenses
Finance expenses comprise interest expense on borrowings, bank charges, unwinding of the discount on provisions
and performance bond facility fees. Borrowing costs that are not directly attributable to the acquisition, construction
or production of a qualifying asset are recognised in profit or loss using the effective interest method. Foreign currency
gains and losses are reported on a net basis either as finance income or finance costs depending on whether they are in a
net gain or loss position.
(a) Administration expenses
Audit fees
Corporate and consultant costs
Director fees, employee salary and on costs expenses
Other administration costs
Total administration expenses
(b) Exploration and evaluation expenses
Exploration and evaluation expenses
(c) Corporate finance expenses
30 JUNE 2022
30 JUNE 2021
NOTE
$
$
(74,300)
(659,948)
(1,915,828)
(603,938)
(3,254,014)
(39,863)
(503,570)
(1,368,327)
(223,766)
(2,135,524)
(11,420,307)
(3,991,793)
External advisors, consultants, brokers and legal expenses
(188,360)
(311,799)
(d) Other expenses
Amortisation and depreciation
11,12
(147,530)
(122,134)
(e) Finance expenses
Interest expense
Total Expenses
(6,617)
(8,222)
(14,766,828)
(6,569,473)
56
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
6. EMPLOYEE BENEFITS EXPENSE
Employee benefits expenses are allocated to exploration and evaluation expenses or administration expenses based
upon time-writing records.
Employee salaries, directors’ fees & on cost expenses
(1,488,887)
(1,007,410)
30 JUNE 2022
30 JUNE 2021
$
$
Share based payment
Staff bonuses STIP
Post-employment benefits
Transfer to exploration & evaluation expenses
Total employee benefits expense
7.
INCOME TAX
Accounting policy
(162,948)
(146,937)
(117,056)
725,623
(83,444)
(192,083)
(85,390)
195,631
(1,190,205)
(1,172,695)
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the
extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial
accounting for a business combination, the tax effect is included in the accounting for the business combination.
The Group recognises deferred tax assets arising from unused tax losses to the extent that it is probable that future
taxable profits of the Group will be available against which the assets can be utilised. The Group assesses the recovery
of its unused tax losses and tax credits only in the period in which they arise. Any subsequent period adjustments to
deferred tax assets arising from unused tax losses as a result of revised assessments of the probability of recoverability
are recognised by the Company.
57
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
7.
INCOME TAX (continued)
Current tax expense
Current period
Deferred tax expense
Origination and reversal of temporary differences
Benefit of tax losses and other deferred tax benefits not recognised
Total income tax expense / (benefit)
30 JUNE 2022
30 JUNE 2021
$
-
-
-
-
$
-
-
-
-
30 JUNE 2022
30 JUNE 2021
$
$
Numerical reconciliation between current tax expense/(benefit) and pre-tax net profit/(loss)
Loss before tax
Income tax using the statutory rate of 30%
Increase in income tax expense due to:
Permanent differences
Deferred income tax not recognised
Total income tax expense / (benefit)
(14,210,882)
(4,263,265)
(186,318)
4,449,583
-
(6,523,291)
(1,956,987)
17,233
1,939,835
-
Tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
30 JUNE 2021
MOVEMENT
30 JUNE 2022
$
$
Deferred tax assets / (liabilities)
Exploration asset
Intangible asset
Provisions
Accrued expenditure
Right of use asset
Lease liabilities
Capital raising costs
Tax losses
Property, plant & equipment
Deferred tax asset not recognised
Net deferred tax assets / (liabilities)
$
-
11,491
18,982
5,625
(54,942)
57,016
692,797
2,937,078
397,398
4,000
16,559
(3,789)
28,237
(27,496)
(15,483)
3,967,549
(34,307)
(3,668,047)
(4,332,668)
-
-
397,398
15,491
35,541
1,836
(26,705)
29,520
677,314
6,904,627
(34,307)
(8,000,715)
-
5 8
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Unrecognised deferred tax assets
As at 30 June 2022 gross tax losses totalling $23,015,422 (2021: $9,790,261) have not been recognised as deferred tax
assets. A deferred tax asset has not been recognised in respect of the above tax losses because it is not probable that
future taxable profit will be available against which the consolidated entity can utilise the benefit.
8. CASH AND CASH EQUIVALENTS
Accounting policy
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. Cash at bank earns interest at floating rates based on
daily bank deposit rates.
Bank balances
Cash and cash equivalents
9. RECEIVABLES
30 JUNE 2022
30 JUNE 2021
$
8,178,668
8,178,668
$
21,787,110
21,787,110
Accounting policy
Receivables are initially recognised at fair value and subsequently at the amounts considered receivable (financial
assets at amortised cost). In order for a financial asset to be classified and measured at amortised cost, it needs to give
rise to cash flows that are ‘solely payments of principal and interest (“SPPI”) on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed at an instrument level.
Current Receivables
GST receivable from the ATO
Other receivables
Current receivables
Non-current Receivables
Exploration license bonds
Non-current receivables
30 JUNE 2022
30 JUNE 2021
$
$
168,849
2,166
171,015
95,000
95,000
76,491
103,477
179,968
55,000
55,000
All receivables are short term in nature, consequently their carrying amount is assumed to approximate their fair value.
5 9
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
10. ASSETS CLASSIFIED AS HELD FOR SALE
Accounting policy
Assets classified as held for sale are measured at the lower of carrying amount and fairvalue less costs to sell. Current
assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than
through continuing use. The condition is regarded as being met only when the sale is highly probable and the asset is
available for immediate sale in its present condition.
30 JUNE 2022
30 JUNE 2021
Mt Piper1
Assets classified as held for sale
Movement of assets classified as held for sale
Carrying amount at beginning of year
Reclassified from exploration and evaluation asset1
Carrying amount at the end of the year
Notes:
$
559,250
559,250
-
559,250
559,250
$
-
-
-
-
-
1.
In April 2022 Coda completed the acquisition of Torrens and as a result, $559,250 for the acquisition of rights to explore Mt Piper was
capitalised. Subsequent to the acquisition the asset was reclassified to and recognised as assets held for sale when the requirements
of AASB 4 were met. On the 4th of July 2022, Coda agreed to divest the project in central Victoria to Kalamazoo for a $300,000 cash
consideration upon completion, 1,525,000 fully paid ordinary shares in Kalamazoo upon completion (escrowed for 12 months) and a 1.0% net
smelter royalty payable on any minerals extracted from the tenements. Completion subsequently occurred on the 16th of September 2022.
11. PROPERTY, PLANT & EQUIPMENT
Accounting policy
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to
a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on
which they are located and capitalised borrowing costs. Cost also may include transfers from other comprehensive
income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and
equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of
that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within
other income/other expenses in profit or loss.
(ii) Depreciation and amortisation
Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each part or item
of property, plant and equipment. Right of use assets are depreciated on a straight line basis over the shorter of the
lease term and the estimated useful life.
60
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The estimated useful lives for the current and comparative periods are as follows:
•
•
furniture fittings and equipment
3-8 years
right of use asset (leased offices)
5-15 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
RIGHT OF USE ASSET
(LEASED OFFICES)
EQUIPMENT, FIXTURES
AND FITTINGS
Cost
At 1 July 2021
Additions
Additions on acquisition of Torrens (note 20)
At 30 June 2022
Accumulated depreciation
At 1 July 2021
Depreciation
At 30 June 2022
Net book value
At 1 July 2021
At 30 June 2022
Cost
At 1 July 2020
Additions
At 30 June 2021
Accumulated depreciation
At 1 July 2020
Depreciation
At 30 June 2021
Net book value
At 1 July 2020
At 30 June 2021
$
353,229
-
-
353,229
(170,090)
(94,121)
(264,211)
183,139
89,018
$
137,071
97,493
61,572
296,136
(39,980)
(40,077)
(80,057)
97,091
216,079
RIGHT OF USE ASSET
(LEASED OFFICES)
EQUIPMENT, FIXTURES
AND FITTINGS
TOTAL
$
490,300
97,493
61,572
649,365
(210,070)
(134,198)
(344,268)
280,229
305,097
TOTAL
$
243,389
246,910
490,300
(101,269)
(108,801)
(210,070)
$
68,195
68,875
137,071
(19,074)
(20,906)
(39,980)
49,121
97,091
142,120
280,229
$
175,194
178,035
353,229
(82,195)
(87,895)
(170,090)
92,999
183,139
The Company leases its corporate office at 6 Altona Street West Perth. The lease expired on 23 July 2021. The lease
was renewed for a further 2 years. This lease is recognised in accordance with the new AASB 16: Leases which the
Company adopted on 1 July 2019. Refer to note 17 for further details.
61
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
12. INTANGIBLE ASSETS
Accounting policy
Licences acquired are initially recognised at cost and are subsequently carried at cost less accumulated amortisation
and accumulated impairment losses. These costs are amortised to profit or loss using the straightline method over 15
years, which is the estimated useful lives and periods of contractual rights.
Intangible assets – Technology licence
Carrying amount at beginning of year
Amortisation
Carrying amount at end of year
30 JUNE 2022
30 JUNE 2021
$
$
144,552
(13,332)
131,220
157,886
(13,334)
144,552
Gindalbie executed licence agreements for the use of mineral processing technology in 2017. This licence provides
the Company with the right to use the technology on new projects that may be identified during ongoing business
development and strategy work. The license was novated to Coda as part of a common-control transaction whereby the
capitalised amounts in Gindalbie’s books were transferred at the net book value to its 100% owned subsidiary Coda.
13. EXPLORATION AND EVALUATION ASSETS
Accounting policy
Expenditure on exploration and evaluation is accounted for in accordance with the ‘area of interest’ method and with
AASB 6 Exploration for and Evaluation of Mineral Resources, which is the Australian equivalent of IFRS 6.
Exploration and evaluation expenditure encompasses expenditures incurred by the Company in connection with the
exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting
a mineral resource are demonstrable.
For each area of interest, expenditure incurred in the acquisition of rights to explore is capitalised, classified as tangible
or intangible, and recognised as an exploration and evaluation asset. Exploration and evaluation assets are measured at
cost at recognition. Exploration and evaluation expenditure incurred by the Company subsequent to acquisition of the
rights to explore is expensed as incurred, up until the point at which a scoping study is completed, a pre-feasibility study
entered into and the pre-feasibility study enters the stage where a case to proceed with preliminary engineering design
work has been made by the Project Steering Committee or the Company’s Board.
Exploration and evaluation assets are only recognised if the rights of tenure to the area of interest are current and either:
(i) the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
(ii) activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and
then reclassified from intangible assets to mining property and development assets within property, plant and equipment.
Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and
transferred to development properties, and then amortised over the life of the reserves associated with the area of
interest once mining operations have commenced.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development
and commercial exploitation, or alternatively, sale of the respective areas of interest.
62
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Elizabeth Creek1, 3
Cameron River2
Total Exploration and Evaluation Assets
Movement of Exploration and Evaluation Assets
Carrying amount at beginning of year1
Additions2
Additions on acquisition of Torrens3 (note 20)
Reclassified to assets held for sale
Carrying amount at end of year
Notes:
30 JUNE 2022
30 JUNE 2021
$
17,619,275
306,900
17,926,175
1,686,359
36,900
16,452,916
(559,250)
17,926,175
$
1,416,359
270,000
1,686,359
1,416,359
270,000
-
-
1,686,359
1.
2.
In April 2017, Gindalbie Metals Ltd entered into a Farm-in and Joint Venture Agreement (“Agreement”) with Terrace Mining Pty Ltd, a
wholly owned subsidiary of Torrens Mining Limited. The Agreement provided Gindalbie the opportunity to earn up to 75% interest in
the Elizabeth Creek Copper-Cobalt Project (previously known as the Mt Gunson Project), located 135km north-west of Port Augusta in
South Australia. Following the receipt of approval by the Foreign Investment Review Board in August 2018, Gindalbie finalised a Novation
Agreement with Terrace Mining Pty Ltd to novate the Mt Gunson Farm-in and Joint Venture Agreement to Coda. As a result of the
novation, a common-control transaction took place whereby the capitalised amounts in Gindalbie were transferred at the net book value
to its 100% owned subsidiary Coda.
In March 2021, Coda entered into a Farm-in and Joint Venture Agreement with Wilgus Investments Pty Ltd (“Wilgus”), giving Coda the right
to acquire up to an 80% interest in the Cameron River Project near Mount Isa in Queensland. In June 2021, 250,000 shares fair valued
at $90,000 and 500,000 performance rights fair valued at $180,000 were issued to Wilgus on completion of all conditions precedent
associated with the Cameron River Farm In Agreement. In October 2021, stamp duty of $36,900 was paid in relation to the Farm-in and
Joint Venture Agreement with Wilgus. Given that the original transaction was accounted for as an asset acquisition, as disclosed in the
30 June 2021 Annual financial statements, the costs associated with the stamp duty have been capitalised as part of the acquisition
price of the related exploration asset.
The key terms of the earn-in commitments under the Cameron River agreement were as follows:
Stage 1: Expenditure of $1 million on exploration activities within 2 years from execution to earn a 51% interest in the Project.
Stage 2: Expenditure of an additional $1 million on exploration activities within 1 year of earning the Stage 1 interest, to earn an additional
29% interest in the Project. Coda has the right to determine exploration activity conducted on the Project during the farm-in.
3.
In April 2022 Coda completed the acquisition of Torrens. As a result, $16,452,916 for the acquisition of rights to explore was capitalised
and recognised as an exploration and evaluation asset. See note 20 for further details.
14. IMPAIRMENT OF NON FINANCIAL ASSETS
Accounting policy
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the
asset’s recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. A cash-generating unit is the smallest identifiable asset of the Company that generates cash flows that are
largely independent from other assets. Impairment losses are recognised in profit or loss.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
63
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
14. IMPAIRMENT OF NON FINANCIAL ASSETS (continued)
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
At 30 June 2022 there were no internal or external indicators of impairment and as a result, no impairment testing was
conducted.
15. TRADE AND OTHER PAYABLES
Accounting policy
Trade and other payables are initially recognised at the value of the invoice received from a supplier and subsequently
measured at amortised cost. They represent liabilities for goods and services provided to the company prior to the end of
the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the
purchase of these goods and services. The amounts are unsecured and generally paid within 60 days of recognition.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the
reporting date. The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to
their short-term nature.
Trade creditors
Other creditors and accruals
Trade and other payables
30 JUNE 2022
30 JUNE 2021
$
832,209
594,564
1,426,773
$
307,949
619,350
927,299
64
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
16. EMPLOYEE BENEFITS
Accounting policy
A current liability is recognised for the amount expected to be paid to an employee for annual leave they are presently
entitled to as a result of past service. The liability includes allowances for on-costs such as superannuation and payroll
taxes, as well as any future salary and wage increases that the employee may reasonably be entitled to. The Group’s
net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in
return for their service up to reporting date, plus related on costs.
(i) Defined contribution superannuation funds
Obligations for contributions to defined contribution superannuation funds are recognised as an expense in profit or
loss when they are owed.
(ii) Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees
have earned in return for their service in the current and prior periods plus on-costs; that benefit is discounted to
determine its present value. The discount rate is the yield at the reporting date on AA credit-rated (Corporate bond
rate) bonds that have maturity dates approximating the terms of the Company’s obligations.
(iii) Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic
possibility of withdrawal, to a formal detailed plan to terminate employment before the normal retirement date.
(iv) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus plans if
the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
Current
Employee benefits
Total employee benefit provision
30 JUNE 2022
30 JUNE 2021
$
$
197,359
197,359
101,070
101,070
65
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
17. LEASE LIABILITY
Accounting policy
The Company as a lessee, has recognised right-of-use assets representing its rights to use the underlying assets and
lease liabilities representing its obligation to make lease payments.
The Company as a lessee will assess whether a contract is, or contains, a lease under AASB 16. A contract is,or contains
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
If the contract is assessed to be, or contains, a lease, the Company will recognise a right-of-use asset and a lease liability
at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any
accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
Depreciation is based on the straight-line method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
The lease liability is subsequently increased by the interest cost on the lease liability, offset by lease payments made.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in
the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the
assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is
reasonably certain not to be exercised.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases lease term of 12
months or less and leases for low-value assets. The Company will recognise the payments associated with these leases
as an expense on a straight-line basis over the lease term.
30 JUNE 2022
30 JUNE 2021
$
$
(a) Lease liability
Maturity analysis
Within one year
Later than one year and not later than three years
Total lease liability
Current
Non-current
Total lease liability
(b) Amounts recognised in profit and loss
Depreciation expense on right-of use assets (Note 11)
Interest expense on lease liabilities
98,400
-
98,400
98,400
-
98,400
94,121
6,617
98,268
91,786
190,054
98,268
91,786
190,054
87,895
8,222
66
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
18. ISSUED CAPITAL
Accounting policy
Issued Capital
Ordinary shares are classified as contributed equity. Costs directly attributable to the issue of new shares or options are
shown in issued capital as a deduction from the proceeds.
30 JUNE 2022
30 JUNE 2022
30 JUNE 2021
30 JUNE 2021
Balance at beginning of period
97,767,184
23,473,301
33,463,651
NOTE
NO. OF SHARES
$
NO. OF SHARES
Movements during the period:
Issued on acquisition of Torrens(i)
20
26,763,993
16,756,092
-
$
1,000
-
Issued under non-renounceable
entitlement offer (ii)
Issued under non-renouncement
entitlement offer (ii)
Issued under initial public offer (iii)
Capital raising costs
Issued under a Placement(iv)
Placement costs
Consideration Shares –
Cameron River Farm-in
Balance at end of period
Notes:
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
124,531,177
40,229,393
10,117,162
1,011,716
13,603,037
28,333,334
-
1,360,304
8,500,000
(966,825)
12,000,000
14,400,000
-
(922,894)
250,000
97,767,184
90,000
23,473,301
(i)
In April 2022 Coda completed the acquisition of Torrens and as a result issued 26,381,493 shares with a fair value of $16,507,467 to
Torrens shareholders as well as 382,500 shares with a fair value of $248,625 to Torrens key management personnel who held Torrens
options as consideration for the acquisition. See note 20 for further details.
(ii) Legally issued pursuant to the Prospectus dated 8 June 2020 to existing shareholders under a non-renounceable entitlement offer of
one fully paid New Share for every Share held by eligible shareholders on Record Date at an issue price of $0.10 per New Share. There
were no special terms or features attached to the shares on offer.
(iii) Legally issued pursuant to the IPO Prospectus dated 4 September 2020 and the Supplementary Prospectus dated 18 September 2020 of
one fully paid New Share per successful applicant at $0.30 per share. There were no special terms or features attached to the shares on
offer.
(iv) Legally issued on 28 June 2021 pursuant to the placement to sophisticated and institutional investors under Section 708A(5)e of the
Corporations Act. There were no special terms or features attached to the shares on offer.
Terms and conditions
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at shareholders meetings. In the event of winding up of the Company, ordinary shareholders rank after all other
shareholders and creditors and are fully entitled to any proceeds of liquidation.
67
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
19. RESERVES
Nature and purpose of reserves
(a) Capital contribution reserve
The capital contribution reserve represents cash and asset contributions from the Company’s former ultimate
parent company made prior to the completion of the demerger on 23 July 2019.
Reserve at beginning of year
Capital contributions during the year
Capital contribution reserve at end of period
(b) Share based payments reserve
30 JUNE 2022
30 JUNE 2021
$
$
12,040,106
12,040,106
-
-
12,040,106
12,040,106
The fair value of options, as at the grant date, granted to employees is recognised as an employee expense, with a
corresponding increase in equity, over the period during which the employees become unconditionally entitled to
the options. The amount recognised as an expense is adjusted to reflect the actual number of share options that
vest, except where forfeiture is only due to share prices not achieving the threshold for vesting. The fair value of
the performance rights consideration for the Cameron River Farm-in as well as the fair value of the performance
rights consideration for the acquisition of Torrens is recognised as an exploration and evaluation asset with a
corresponding increase in equity at the date of the commencement of the Cameron River Farm-in Agreement and
the Torrens acquisition date respectively.
The share-based payments reserve comprises the net value of employee options expensed over the vesting period
as well as performance rights consideration for Cameron River Farm-in and performance rights consideration for
the Torrens acquisition calculated at grant date using the Modified Binomial, Black-Scholes or Monte Carlo model,
depending on whether they contain market performance conditions. For share based payments with a future vesting
period, the share based payment value is brought to account progressively over the term of the vesting period.
Reserve at beginning of year
Share based payments to Directors & Employees expensed during the year
Share based payments consideration – Cameron River Farm-in
Share based payments consideration– Torrens Acquisition (note 20)
Share based payments reserve at end of period
30 JUNE 2022
30 JUNE 2021
$
263,444
162,948
-
185,467
611,859
$
-
83,444
180,000
-
263,444
68
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
20. ACQUISITION OF TORRENS MINING LIMITED
During the year, the group acquired 100% of the issued share capital of Torrens Mining Limited (“Torrens”) via an off-
market takeover offer of 0.23 new Coda shares for every Torrens share held to create a leading base and precious metals
exploration company focussed on the Elizabeth Creek Copper Project (“Elizabeth Creek”) in South Australia. Torrens was an
Australian public company listed on the Australian Securities Exchange, which, through its subsidiaries, held exploration
interests in Australia and Papua New Guinea. Torrens held 30% of the Elizabeth Creek as Coda’s joint venture partner on
the project prior to the acquisition. Coda’s key rationale for the transaction was to obtain 100% ownership consolidation of
Elizabeth Creek into a single entity to provide full exploration optionality and deliver management and cost synergies.
On the 8th of April 2022 the takeover offer was declared unconditional after reaching 80.84% acceptance from Torrens
shareholders and control was obtained by Coda. The entire acquisition consideration of 26,381,493 Coda shares were
issued to 100% of the Torrens shareholders who held 114,701,662 Torrens shares between the date Coda obtained control
and the date 100% of the acquisition consideration was issued of the 2nd of June 2022. Furthermore, 991,804 Coda options
were issued to Torrens’s lead advisor for the 6,047,583 Torrens options they held, and 382,500 Coda shares were issued to
Torrens key management personnel for the 7,500,000 Torrens options they held as a part of the acquisition consideration.
The acquisition is not accounted for as a business combination, as the nature of the activities of Torrens did not
constitute an integrated set of activities and assets that are capable of being conducted and managed for the purpose of
providing a return, nor were the acquired assets and processes capable at the time of acquisition of producing intended
output. Management applied the ‘concentration test’ as allowed under AASB3 Business Combinations to make the
assessment that Torrens was not a business and therefore the acquisition did not constitute a business combination.
The acquisition is instead accounted for as the acquisition of the net assets of the group headed by Torrens.
The consideration paid in the form of 26,381,493 Coda shares, was at an average share price of $0.626 per share based
upon the Coda share price on the various dates that the shares were issued between the date of control (8 April 2022) and
the date on which 100% of the consideration was issued (2 June 2022). The 991,804 Coda options issued to Torrens’s lead
advisor were valued at $0.187 per option based upon a black-scholes valuation and the 382,500 Coda shares issued to
Torrens key management personnel were valued at $0.650 per share on the date Coda obtained control (8 April 2022). In
addition, transaction costs incurred by the entity were $1,183,367 therefore the total fair value of the consideration paid
was $18,124,926.
The assets and liabilities acquired at fair value were as follows:
Net assets acquired
Cash and cash equivalents
Trade and other receivables
Prepayments and provisions
Property, plant and equipment
Exploration and evaluation assets
Trade and other payables
Employee benefits
Total net assets acquired
Cash acquired, net of paymentsfor the acquisition of subsidiary:
Cash balance acquired
Less: acquistion costs
Cash consideration, net of receipts
Net inflow of cash – investing activities
2022
$
2,075,365
67,381
92,533
61,572
16,762,166
(1,135,920)
(48,171)
17,874,926
2,075,365
(1,174,113)
-
901,252
69
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
21. SUBSIDIARIES
The parent entity of the group is Coda Minerals Limited, incorporated in Australia, which has the following direct and
indirect subsidiaries. All the subsidiaries below were brought into the group in the year following the Torrens transaction.
NAME OF SUBSIDIARY
PLACE OF INCORPORATION
BENEFICIAL INTEREST
Direct subsidiary
Torrens Mining Ltd
Indirect subsidiary
Terrace Mining Pty Ltd
Torrens Gold Exploration Pty Ltd
Torrens Mining (Holdings) Pty Ltd
Australia
Australia
Australia
Australia
Torrens Mining (PNG) Ltd
Papua New Guinea
22. PARENT ENTITY DISCLOSURES
100%
100%
100%
100%
100%
Accounting policy
The financial information for the parent entity, Coda Minerals Limited has been prepared on the same basis as the
consolidated financial statements.
Company Statement of Financial Position
ASSETS
Current assets
Non-current assets
Total assets
LIABILITIES
Current liabilities
Non-current liabilities
Total liabilities
EQUITY
Issued capital
Capital contribution reserve
Share based payment reserve
Accumulated losses
TOTAL EQUITY
Company Statement of Financial Performance
Loss for the year
Total comprehensive loss for the year
30 JUNE 2022
30 JUNE 2021
$
$
8,061,406
2,527,004
10,588,410
1,304,808
-
1,304,808
23,473,301
12,040,106
426,392
(26,656,197)
9,283,602
22,036,116
2,166,140
24,202,256
1,126,637
91,786
1,218,424
23,473,301
12,040,106
263,444
(12,793,019)
22,983,832
(13,863,177)
(13,863,177)
(6,523,291)
(6,523,291)
70
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23. CAPITAL AND OTHER COMMITMENTS
(a) Exploration expenditure commitments
In order to maintain current rights of tenure to exploration tenements, the Company is required to perform minimum
exploration work to meet the minimum expenditure requirements specified by the Governments of South Australia,
Victoria and New South Wales. These requirements are subject to renegotiation when application for a mining lease is
made and at other times.
The exploration expenditure commitments which are payable no later than one period are as follows:
Annual fees – Elizabeth Creek
Annual Fees – Cameron River
Annual Fees – Mt Piper
Annual Fees – Club Terrace
Total commitments
24. EARNINGS PER SHARE
30 JUNE 2022
30 JUNE 2021
$
16,587
1,845
13,378
5,283
37,093
$
11,611
1,845
-
-
13,456
The Company presents basic and diluted earnings per share (‘EPS’) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares, which comprise share options granted to employees.
Basic earnings per share
The calculation of basic earnings per share at 30 June 2022 was based on the loss attributable to ordinary shareholders
of $14,210,882 and a weighted average number of ordinary shares outstanding during the year ended 30 June 2022 of
103,459,717 calculated as follows:
30 JUNE 2022
30 JUNE 2021
$
$
Basic earnings per share
Loss attributable to ordinary shareholders
(14,210,882)
(6,523,291)
Weighted average number of ordinary shares
Shares on issue at the beginning of the year / on incorporation
75,076,122
33,463,651
Effect of shares issued on exercise of share based payments
-
-
Weighted average number of ordinary shares at the end of the year
103,459,717
75,076,122
NO. OF SHARES
NO. OF SHARES
Earnings / (loss) per share:
Basic and diluted
(0.14)
(0.09)
7 1
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
25. FINANCIAL INSTRUMENTS & FINANCIAL RISK MANAGEMENT
Accounting policy
Financial Instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it
is extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs.
Financial assets, other than those designated and effective as hedging instruments, are classified into the following
categories:
•
•
•
amortised cost
fair value through profit or loss (“FVTPL”)
fair value through other comprehensive income (“FVOCI”).
In the period presented in this financial report the Company does not have any financial assets categorised as FVOCI or
FVTPL.
The classification is determined by both:
•
•
the entity’s business model for managing the financial asset
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance
costs, finance income or other financial items, except for expected credit losses of trade receivables which is presented
in other expense.
Financial Assets at Amortised Cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as
FVTPL):
•
•
they are held under a business model whose objective it is “hold to collect and sell” the associated cash flows and
sell; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade receivables and
most other receivables fall into this category of financial instruments.
Financial Assets at FVTPL
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’
are categorised at fair value through profit and loss. Further, irrespective of an entity’s business model financial assets
whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All derivative
financial instruments fall into this category, except for those designated and effective as hedging instruments, for which
the hedge accounting requirements apply.
7 2
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Financial Assets at FVTOCI
The Company accounts for financial assets at FVOCI if the assets meet the following conditions:
•
•
they are held under a business model whose objective it is “hold to collect and sell” the associated cash flows and
sell; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Any gains or losses recognised in other comprehensive income (“OCI”) will be recycled upon derecognition of the asset.
Impairment of financial assets
The Company considers a broader range of information when assessing credit risk and measuring expected credit losses,
including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of
the future cash flows of the instrument.
Trade and other receivables
The Company makes use of a simplified approach in accounting for trade and other receivables and records the loss
allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering
the potential for default at any point during the life of the financial instrument. In calculating, the Company uses its
historical experience, external indicators and forward-looking information to calculate the expected credit losses using
a provision matrix.
Classification and measurement of financial liabilities
The Company’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method. All interest-related
charges are recognised in profit or loss within finance costs, finance income or other financial items.
Fair values versus carrying amounts
The estimated fair value of financial instruments has been determined by the Company using available market
information and appropriate valuation methods. The use of different market assumptions and/or estimation methods
may have a material effect on the estimated fair value amounts. For all financial assets and liabilities, the carrying value
approximates fair value.
Financial Risk Management Overview
The Company has exposure to the following risks from its use of financial instruments:
•
•
credit risk
liquidity risk
• market risk
This note presents information about the Company’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital including risks resulting from its investment
in fair value accounted Investment. Further quantitative disclosures are included throughout the financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.
The Board is responsible for developing and monitoring risk management policies. The Board reviews its activities
regularly.
Risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and
management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their roles and obligations.
73
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
25. FINANCIAL INSTRUMENTS & FINANCIAL RISK MANAGEMENT (continued)
The Company’s Board oversees how management monitors compliance with the Company’s risk management policies
and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company.
(a) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company’s cash, cash equivalents and term
deposits.
Exposure to credit risk
The carrying amount of the Company’s financial assets represents the maximum credit exposure. The Company’s
maximum exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
30 JUNE 2022
30 JUNE 2021
NOTE
8
9
$
8,178,668
2,166
$
21,787,110
103,477
The Company’s cash and cash equivalents of $8,178,668 at 30 June 2022 represent its maximum credit exposure on
these assets. The cash and cash equivalents are held with bank and financial institution counterparties, which are
rated at between A2 and A1+ from Standard & Poor’s and A from Moody’s. None of the Company’s receivables are
past due.
(b) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses
or risking damage to the Company’s reputation.
The following are the contractual maturities of the Company’s financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
30 JUNE 2022
30 JUNE 2021
CARRYING
AMOUNT
6 MONTHS
OR LESS
CARRYING
AMOUNT
6 MONTHS
OR LESS
$
$
$
$
Non-derivative financial liabilities
Trade and other payables
1,426,773
1,426,773
927,299
927,299
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices that will affect the Company’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
74
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(d)
Interest rate risk
Exposure to interest rate risk
The Company’s exposure to interest rate risk at balance date was as follows, based on notional amounts:
Variable rate instruments
Cash and cash equivalents
30 JUNE 2022
30 JUNE 2021
$
$
8,178,668
8,178,668
21,787,110
21,787,110
At reporting date, the Company’s exposure to interest rate risk was not material.
(e) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Company manages its capital to ensure it will be able to
continue as a going concern while maximising the return to shareholders through the optimisation of its capital
structure.
The capital structure of the Company consists of issued capital, reserves and retained earnings as disclosed in
Notes 18 and 19, respectively.
26. NOTES TO THE STATEMENT OF CASH FLOWS
Reconciliation of loss after income tax to net cash inflow from operating activities:
Loss for the period after income tax
Adjustments for:
Depreciation and amortisation
Employee option expense EOST
Net finance costs
30 JUNE 2022
30 JUNE 2021
$
$
(14,210,882)
(6,523,291)
147,530
162,948
(7,333)
122,134
83,445
(8,222)
Operating loss before changes in working capital and provisions
(13,907,737)
(6,325,934)
Decrease / (increase) in receivables
Decrease/(increase) in exploration & evaluation assets
Decrease/(increase) in exploration license bonds
Decrease /(increase) in prepayments
Increase / (decrease) in trade and other payables
Increase / (decrease) in employee benefits
Net cash (used in) operating activities
17,958
(36,900)
(40,000)
(71,995)
(404,177)
96,289
129,893
-
-
(9,926)
624,833
31,076
(14,346,563)
(5,550,058)
75
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
27. RELATED PARTIES DISCLOSURES
Key management personnel (KMP) compensation
The compensation paid to the Company’s Key Management Personnel is shown below.
Employee salaries & directors’ fees
Share based payment
Staff bonuses STIP
Annual leave movement
Post-employment benefits
Non-monetary benefits
Total employee benefits expense
30 JUNE 2022
30 JUNE 2021
$
(765,882)
(136,368)
(98,227)
(25,631)
(63,864)
(6,391)
(1,096,363)
$
(657,029)
(83,443)
(114,712)
(9,406)
(51,929)
(3,600)
(920,119)
Detailed remuneration disclosures are provided in the remuneration report on page 24.
Transactions with other related parties
There have been no other related party transactions during the reporting period.
28. SHARE BASED PAYMENTS
Accounting policy
The fair value of employee share based payments is measured using an acknowledged valuation formula. Measurement
inputs include share price on measurement date, exercise price of the share based payment, expected volatility (based
on weighted average historic volatility adjusted for changes expected due to publicly available information), expected life
of the share based payment, expected dividends, and the risk-free interest rate (based on government bonds). Service
and non-market performance conditions attached to the share based payment are not taken into account in determining
fair value. Details in relation to the share based payment granted during the period, including the valuation model applied
are included below.
The grant date fair value of share based payments granted to employees is recognised as an employee expense, with a
corresponding increase in equity, over the period during which the employees become unconditionally entitled to the
share based payments. The amount recognised as an expense is adjusted to reflect the actual number of share based
payments that vest, except where forfeiture is only due to share prices not achieving the threshold for vesting.
Options
During the 2022 financial year, the Company granted 991,804 options to to Torrens’s lead advisor for the 6,047,583 Torrens
options they held as a part of the acquisition consideration as detailed in note 20. The options carry an exercise price of
$1.50 per option and have no vesting conditions. The options may be exercised on or before 23 December 2023.
7 6
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The options were valued using a Black-Scholes Option Pricing Model. The following table provides a summary of terms
under which the performance rights were issued:
ITEM
Value of underlying security
Exercise price
Valuation date
Expiry date
Expiration period (years)
Volatility
Risk-free interest rate
Number of options
Valuation per option
DETAIL
$0.65
$1.50
8 April 2022
20 December 2023
1.71
100%
2.110%
991,804
$0.187
During the 2021 financial year, the Company granted 6,000,000 options to key management personnel as part of the
Employee Incentive Plan. The options issued were in the form of a Premium exercise price options “PEPO”. The options
carried an exercise price of $0.2145 per option and vesting conditions requiring continued service, and the Company’s
ASX listed share price achieving the following hurdle prices of $0.23, $0.27, and $0.30 for each third of options granted.
The options may be exercised on or before 3 July 2024 and are subject to escrow until 28 October 2022.
TRANCHE
A
B
C
NUMBER
OF OPTIONS
2,000,000
2,000,000
2,000,000
EXPIRY DATE
3 July 2024
3 July 2024
3 July 2024
EXERCISE
PRICE
$0.2145
$0.2145
$0.2145
VESTING CONDITION
Upon reaching a share price of $0.23
Upon reaching a share price of $0.27
Upon reaching a share price of $0.30
The options were valued using a Barrier Up and In Trinomial Option Pricing Model. The model takes into consideration that
the options can vest at any time during the performance period, given the Company’s share price meets or exceeds pre-
determined barriers.
The following table provides a summary of terms under which the options were issued:
ITEM
TRANCHE A
TRANCHE B
TRANCHE C
Value of underlying security
Exercise price
Share price barrier
Valuation date
Expiry date
Expiration period (years)
Volatility
Risk-free interest rate
Number of options
Valuation per option
$0.10
$0.2145
$0.230
28 May 2020
3 July 2024
4.00
100%
0.405%
2,000,000
$0.056
$0.10
$0.2145
$0.270
28 May 2020
3 July 2024
4.00
100%
0.405%
2,000,000
$0.056
$0.10
$0.2145
$0.300
28 May 2020
3 July 2024
4.00
100%
0.405%
2,000,000
$0.056
77
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
28. SHARE BASED PAYMENTS (continued)
All options have the following vesting conditions:
(a) share price to reach the barrier price at any time during the options life; and
(b) continuous employment is required (unless cessation of employment is due to redundancy or illness).
Should option holders resign, the Board may at its discretion waive the vesting condition relating to the requirement to
remain a Director of the Company and allow the option holder to continue to hold the options following resignation.
The above options do not entitle the holder to participate in any potential share issue of the Company.
The following table illustrates the number and movements in options during the 2022 financial year:
GRANT
DATE
EXPIRY
DATE
3-Jul-20
3-Jul-24
3-Jul-20
3-Jul-24
3-Jul-20
3-Jul-24
BALANCE
AT START
OF PERIOD
GRANTED
DURING
THE PERIOD
EXERCISED
DURING
THE PERIOD
FORFEITED
DURING
THE PERIOD
BALANCE
AT END OF
THE PERIOD
2,000,000
2,000,000
2,000,000
-
-
-
-
-
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
991,804
VESTED AND
EXERCISABLE
AT END OF
THE PERIOD
2,000,000
2,000,000
2,000,000
991,804
8-Apr-22
22-Dec-23
-
991,804
Performance rights
During the 2022 financial year, the Company granted 152,786 performance rights to employees as part of the Employee
Incentive Plan. The performance rights carried a nil exercise price and vesting conditions requiring continued service. The
expiry dates as well as vesting conditions of the various tranches of the performance rights are detailed in the table below.
NUMBER OF
PERFORMANCE
RIGHTS
TRANCHE
EXPIRY DATE
EXERCISE
PRICE
VESTING CONDITION
A
B
C
103,246
19 November 2026
Nil
3,366
22 December 2026
Nil
46,174
23 December 2026
Nil
1/3 vest after continuous employment to 1 July 2022
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2024
1/3 vest after continuous employment to 1 July 2022
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2024
1/3 vest after continuous employment to 1 July 2022
1/3 vest after continuous employment to 1 July 2023
1/3 vest after continuous employment to 1 July 2024
7 8
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The performance rights were valued using a Black-Scholes Option Pricing Model. The following table provides a summary
of terms under which the performance rights were issued:
ITEM
TRANCHE A
TRANCHE B
TRANCHE C
Value of underlying security
Exercise price
Valuation date
Expiry date
Expiration period (years)
Volatility
Risk-free interest rate
Number of performance rights
Valuation per performance right
$0.83
Nil
$0.85
Nil
$0.88
Nil
19 November 2021
22 December 2021
23 December 2021
19 November 2026
22 December 2026
23 December 2026
5.00
100%
1.395%
103,246
$0.83
5.00
100%
1.285%
3,366
$0.85
5.00
100%
1.300%
46,174
$0.88
All performance rights have the following vesting condition:
(a) continuous employment is required (unless cessation of employment is due to redundancy or illness).
Should performance right holders resign, the Board may at its discretion waive the vesting condition relating to the
requirement to remain an employee of the Company and allow the holder to continue to hold the performance rights
following resignation.
During the 2021 financial year, the Company granted 500,000 performance rights to Wilgus as part of the Cameron Rver
Farm-in and Joint Venture Agreement. The performance rights carried a nil exercise price. The expiry dates as well as
vesting conditions of the various tranches of the performance rights are detailed in the table below.
NUMBER OF
PERFORMANCE
RIGHTS
TRANCHE
EXPIRY
DATE
EXERCISE
PRICE
VESTING CONDITION
A
250,000
28
December
2024
Nil
B
250,000
28
December
2024
Nil
Upon the later of:
•
Coda having earned a 51% ownership interest in the Cameron
River Project (i.e. Stage 1) by incurring $1,000,000 in expenditure
on exploration activities within 2 years of the Cameron River
Farm-in Agreement being executed;
•
•
Coda having provided Wilgus with written notice that
expenditure of the Stage 1 amount had been completed within
the 2 year period; and
Coda giving notice that it intends to earn-in the Stage 2 interest
(a further 29%).
Upon the later of:
•
Coda having earned the further 29% ownership interest in the
Cameron River Project (i.e. Stage 2) by incurring an additional
$1,000,000 in expenditure on exploration activities within 1 year
of earning the Stage 1 interest;
•
•
Coda having provided Wilgus with written notice that
expenditure of the Stage 2 amount had been completed within
the additional 1 year period; and
formation of the unincorporated joint venture between Coda and
Wilgus to explore for minerals at the Cameron River Project.
79
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The performance rights were valued using a Black-Scholes Option Pricing Model. The following table provides a summary
of terms under which the performance rights were issued:
ITEM
TRANCHE A
TRANCHE B
Value of underlying security
Exercise price
Valuation date
Expiry date
Expiration period (years)
Volatility
Risk-free interest rate
Number of performance rights
Valuation per performance right
$0.36
Nil
$0.36
Nil
3 June 2021
3 June 2021
28 December 2024
28 December 2024
3.60
100%
0.085%
250,000
$0.36
3.60
100%
0.085%
250,000
$0.36
The above performance rights do not entitle the holder to participate in any potential share issue of the Company.
The following table illustrates the number and movements in performance rights during the 2022 financial year:
GRANT
DATE
EXPIRY
DATE
3-Jun-21
28-Dec-24
3-Jun-21
28-Dec-24
19-Nov-21
19-Nov-26
22-Dec-21
22-Dec-26
23-Dec-21
23-Dec-26
BALANCE
AT START
OF PERIOD
GRANTED
DURING
THE PERIOD
EXERCISED
DURING
THE PERIOD
FORFEITED
DURING
THE PERIOD
BALANCE
AT END OF
THE PERIOD
VESTED AND
EXERCISABLE
AT END OF
THE PERIOD
250,000
250,000
-
-
-
-
-
103,246
3,366
46,174
-
-
-
-
-
-
-
-
-
-
250,000
250,000
103,246
3,366
46,174
-
-
-
-
-
Shares issued on exercise of options and performance rights
During the financial year, the Company has issued nil ordinary shares as a result of the exercise of options and
performance rights.
80
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
29. CONTINGENT ASSETS AND LIABILITIES
At the reporting date, the Company had no contingent assets or liabilities apart from the below:
Terrace Mining and Strandline Resources Limited (Strandline) entered into a Letter Agreement dated 14 December 2015
(Strandline Elizabeth Creek Agreement) under the terms of which Terrace Mining acquired sole ownership of the Elizabeth
Creek Project tenements. Completion of the purchase took place on or about 21 March 2016. Under the terms of the
Strandline Elizabeth Creek Agreement, the Project tenements, associated mining information and assets were acquired
by Terrace Mining for $200,000 cash and 4,000,000 ordinary fully paid shares in Torrens, with a further $1,000,000 cash
(Deferred Consideration) payable on a Decision to Mine.
A further Deed of Acknowledgment and Consent dated 4 May 2017 (Acknowledgement Deed) was entered into between
Terrace Mining, Gindalbie Metals Limited and Strandline concerning the Deferred Consideration, acknowledging that
Terrace Mining remains responsible for the payment of the Deferred Consideration. Under the Acknowledgement Deed,
consequent upon Torrens’ successful IPO and admission to the ASX, 1,250,000 shares were issued at $0.20 per share
(equivalent to $250,000) to Strandline as a partial discharge of the Deferred Consideration related to the Elizabeth Creek
Project (refer to note 13(b)). The remaining amount of Deferred Consideration has been converted to a 2% Net Smelter
Royalty (NSR) capped at $1,250,000, payable from production from the Elizabeth Creek Project tenements. The NSR right
may be bought back by Terrace for $750,000 cash.
30. AUDITOR’S REMUNERATION
Auditors of the Company – Deloitte Touche Tohmatsu
Deloitte and related network firms
Audit and review of financial reports
Other assurance and agreed-upon procedures under other legislation or
contractual arrangements
30 JUNE 2022
30 JUNE 2021
$
$
55,300
39,863
-
-
Other services - Tax consulting services
77,242
14,777
Other auditors and their related network firms
Audit and review of financial reports
Other assurance and agreed-upon procedures under other legislation or
contractual arrangements
Other services - Tax consulting services
Auditor’s Remuneration
19,000
-
-
-
-
-
151,542
54,640
81
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
31. EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year apart from the following:
• On the 4th of July 2022, Coda agreed to divest its Mt Piper Gold Project in central Victoria to Kalamazoo Resources
Limited (“Kalamazoo”) for a $300,000 cash consideration upon completion, 1,525,000 fully paid ordinary shares
in Kalamazoo upon completion (escrowed for 12 months) and a 1.0% net smelter royalty payable on any minerals
extracted from the tenements. Completion subsequently occurred on the 16th of September 2022;
• On the 12th of July 2022, 499,742 performance rights were issued to employees under the Employee Incentive Plan;
and
• On the 12th of July 2022, 50,928 Coda shares were issued to employees upon the exercise of vested performance
rights that were under the Employee Incentive Plan.
32. NEW AND AMENDED STANDARDS
A number of new or amended standards became applicable for the current reporting period. The group did not have to
change its accounting policies or make retrospective adjustments as a result of adopting these standards. Therefore,
the accounting policies adopted here are consistent with those of the previous financial year and corresponding interim
period, apart from the new standards that only became applicable to the Group in the current financial year. The impact of
the adoption of the new or amended accounting standards was not material.
82
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ASX ADDITIONAL INFORMATION
The following additional information is required by the Australian Securities Exchange. The information is current as at
28th September 2022.
STATEMENT ON USE OF FUNDS
Pursuant to Listing Rule 4.10.19, over the reporting period between 1 July 2021 and 30 June 2022 and to the date of this
Annual Report, the Company used its cash and assets in a form readily convertible to cash that it had at the time of
admission in a way consistent with its business objectives.
SHARES
As at 28th September 2022, there were 4,493 shareholders holding a total of 124,582,105 fully paid ordinary shares.
UNQUOTED SECURITIES
UNQUOTED SECURITY
Options
Performance rights
DISTRIBUTION SCHEDULE OF SHAREHOLDERS
Ordinary Shares
HOLDING RANGES
HOLDERS
TOTAL UNITS
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
Options
1,610
1,525
474
745
139
4,493
781,909
3,644,078
3,585,235
23,308,310
93,262,573
124,582,105
NUMBER ON ISSUE
6,991,804
1,101,600
% OF ISSUED
SHARE CAPITAL
0.63%
2.93%
2.88%
18.71%
74.86%
100%
HOLDING RANGES
HOLDERS
TOTAL UNITS
% OF ISSUED SHARE
CAPITAL
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
0
0
0
0
61
6
0
0
0
0
6,991,804
6,991,804
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
1 Coda granted 991,804 options to Torrens’s lead advisor for the 6,047,583 Torrens options they held as a part of the acquisition consideration.
83
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ASX ADDITIONAL INFORMATION
PERFORMANCE RIGHTS
HOLDING RANGES
HOLDERS
TOTAL UNITS
% OF ISSUED SHARE
CAPITAL
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
ESCROWED SECURITIES
CATEGORY
Shares
Options, ex price $0.2145, expiry 3 July 2024
Total
UNMARKETABLE PARCELS
0
0
0
4
3
7
0
0
0
276,663
824,937
1,101,600
0.00%
0.00%
0.00%
25.11%
74.89%
100.00%
TOTAL UNITS
END OF ESCROW PERIOD
6,310,952
6,000,000
12,310,952
28-Oct-22
28-Oct-22
As of 28th September 2022, there were 2,189 shareholders with an unmarketable parcel of shares being a holding of less
than 1,725 shares at a $0.29. Unmarketable parcels totalled 1,543,324 shares, representing a 1.24% of issued capital.
84
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
ASX ADDITIONAL INFORMATION
TOP TWENTY SHAREHOLDERS
RANK
SHAREHOLDER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
ANGANG GROUP HONG KONG (HOLDINGS) LIMITED
MR KEITH FRANCIS JONES & MRS JENNIFER JONES
SUNSET CAPITAL MANAGEMENT PTY LTD
UBS NOMINEES PTY LTD
CITICORP NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
MS LINLIN LI
LUJETA PTY LTD
MR WILLIAM FREDERICK BLOKING
MR PAUL LESLIE DUNCAN, MRS DARANEE DUNCAN, MR PAUL
KENNEDY DUNCAN
COSSACK HOLDINGS (AUS) PTY LTD
THECIA PTY LTD
SHEDDEN ASSOCIATES PTY LTD
LUJAMA PTY LTD
MR PAUL DUNCAN HALLAM & MRS CHRISTINE JOY HALLAM
NO BULL HEALTH PTY LTD
ONE MANAGED INVESTMENT FUNDS LIMITED
GOLDNEY PTY LTD
20
PATHWAYS CORP INVESTMENTS PTY LTD
Total
SUBSTANTIAL SHAREHOLDERS
NUMBER OF ORDINARY
SHARES HELD
11,899,834
7,110,801
4,321,245
4,202,810
3,940,790
3,901,361
3,301,537
2,886,718
2,762,483
2,472,500
2,265,990
1,800,000
1,748,000
1,702,000
1,500,000
1,248,888
1,224,511
1,113,691
1,066,667
1,000,000
%IC
9.55
5.71
3.47
3.37
3.16
3.13
2.65
2.32
2.22
1.98
1.82
1.44
1.40
1.37
1.20
1.00
0.98
0.89
0.86
0.80
49.34
Substantial shareholders in Coda Minerals Ltd and the number of equity securities over which the substantial shareholder
has a relevant interest as disclosed in substantial holding notices provided to the Company are listed below:
SHAREHOLDER NAME
REGAL FUNDS MANAGEMENT PTY LIMITED
MR KEITH FRANCIS JONES & MRS JENNIFER JONES
VOTING RIGHTS
ORDINARY
SHARES HELD
% ORDINARY
SHARES HELD
9,002,348
7,110,801
7.25%
5.71%
All fully paid ordinary shares carry one vote per share without restriction. Unquoted options have no voting rights.
85
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
ASX ADDITIONAL INFORMATION
MINING TENURE SUMMARY
As at 28th September 2022, Coda owns three exploration tenements which collectively make up the Elizabeth Creek
Copper-Cobalt (formerly Mt Gunson) Project directly and indirectly through its 100% owned subsidiary Terrace Mining
Limited. The Elizabeth Creek Copper-Cobalt Project is located 135km north-west of Port Augusta in South Australia.
TENEMENT
REGISTERED HOLDER / APPLICANT
% HELD
GRANT DATE
EXPIRY DATE
AREA
EL 6518
(formerly EL 5636)
EL 6141
(formerly EL 5108)
EL 6265
(formerly EL 5333)
Coda Minerals Ltd
(ACN 625 763 957)
Terrace Mining Pty Ltd
(ACN 161 377 340)
Coda Minerals Ltd
(ACN 625 763 957)
Terrace Mining Pty Ltd
(ACN 161 377 340)
Coda Minerals Ltd
(ACN 625 763 957)
Terrace Mining Pty Ltd
(ACN 161 377 340)
70%
30%
70%
30%
70%
30%
25 March 2015
24 March 2022
363 km2
29 October 2017
28 October 2022
47 km2
7 October 2018
6 October 2023
291 km2
Coda also owns an interest in three exploration tenements in Victoria, one exploration tenement in New South Wales, and
one tenement in Papua New Guinea through its various subsidiaries listed below.
VICTORIA
TENEMENT
REGISTERED HOLDER / APPLICANT
% HELD
GRANT DATE
EXPIRY DATE
GRATICULAR
SECTION
EL 5455
EL 7637
EL 7342
EL 7584
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
NEW SOUTH WALES
100%
22 October 2013
21 October 2023
100%
29 August 2022
28 August 2027
100%
29 August 2022
28 August 2027
100%
29 August 2022
28 August 2027
8
367
373
109
TENEMENT
REGISTERED HOLDER / APPLICANT
% HELD
GRANT DATE
EXPIRY DATE
AREA
EL 9238
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
100%
2 August 2021
3 August 2027
260km2
PAPUA NEW GUINEA
TENEMENT
REGISTERED HOLDER / APPLICANT
% HELD
GRANT DATE
EXPIRY DATE
GRATICULAR
SECTION
EL 2690
Torrens Gold Exploration Pty Ltd
(ACN 624 938 076)
100%
26 January 2022
26 January 2024
341
On 22 March 2021 the Company announced that it had secured an addition to its portfolio of Australian copper
exploration projects after entering into a Farmin and Joint Venture Agreement over the highly prospective Cameron
River Project, located in the heart of the world class Mt Isa mineral province in North Queensland. Coda entered into a
binding Farm-in and Joint Venture Agreement with Wilgus Investments Pty Ltd (“Wilgus”) giving it the right to acquire
86
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ASX ADDITIONAL INFORMATION
up to an 80% ownership in the Cameron River project (“Cameron River”) near Mt Isa in Queensland by spending up to
$2 million on exploration in stages over a three-year period. Coda Minerals currently does not own an interest in the
Cameron River tenements.
MINERAL RESOURCE AND ORE RESERVE STATEMENT
In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources and Ore Reserves at
least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance
date. If there are any material changes to its Mineral Resources or Ore Reserves over the course of the year, the Company
is required to promptly report these changes.
In December 2021, Coda announced a maiden Mineral Resource Estimate (MRE) for the Emmie Bluff shale-hosted copper-
cobalt deposit. The MRE comprises a combined Indicated and Inferred Mineral Resource of 43Mt @ 1.3% Cu, 470ppm Co,
11 g/t Ag and 0.15% Zn (1.84% CuEq), reported at a cut-off grade of 1% CuEq, significantly increasing the Company’s overall
Mineral Resources.
MINERAL RESOURCE SUMMARY
The Emmie Bluff Copper-Cobalt Deposit (“Emmie Bluff”) is one of three known “Zambian-style” copper-cobalt deposits
at Elizabeth Creek, which also includes previously defined JORC 2012 Compliant Indicated Mineral Resources at the MG14
and Windabout deposits.
EMMIE BLUFF
Table 1 Mineral Resource Summary for Emmie Bluff, 1% Copper equivalent cut-off1
CATEGORY
COPPER EQUIVALENT
COPPER
COBALT
SILVER
ZINC
Tonnes
Grade
(%
CuEq)
Contained
Metal (t)
Grade
(%
Cu)
Contained
Metal (t)
Grade
(ppm
Co)
Contained
Metal (t)
Grade
(g/t
Ag)
Contained
Metal
(Mo2)
Grade
(% Zn)
Contained
Metal (t)
Indicated
38,800,000
Inferred
4,500,000
1.9
1.4
735,000
62,000
Total
43,300,000
1.84
797,000
1.
1.1
1.3
515,000
47,000
562,000
500
230
470
19,000
1,000
20,000
11
9
11
15
1
15.5
0.15
0.17
0.15
58,000
8,000
66,000
The majority of the Mineral Resource has been classified as Indicated, with the remainder classified as Inferred. The
resource classifications have been applied based on a consideration of the confidence in the geological interpretation, the
quality and quantity of the input data, the confidence in the estimation technique, and the likely economic viability of the
material. The defined domains (Upper and Lower Tapley) can be traced over several drill lines and interpretation reinforced
from depth calibrated 2-D seismic data. The controlling factor for classification was sample coverage from drillholes and
location of 2-D seismic data for enhancing interpretation between holes. A resource boundary was defined approximately
100 to 150 m beyond the extents of relatively uniform drill coverage as indicated from interpretation of seismic data.
The drill holes which were used to complete this estimate consist of a total of 38 mineralised holes and 16 unmineralised
holes used to assist in edge definition. 12 mineralised and 7 unmineralised holes were considered “historic” (i.e. drilled by
previous explorers) with the remainder drilled by Coda or its immediate precursor company Gindalbie Metals considered
“recent”. The majority of these holes were percussion or mud rotary precollared, with HQ diamond tails, though a small
number were diamond from surface and/or NQ diamond. Drill spacing is approximately 200 m to 300m but spacing increases
towards the margins of the deposit, particularly toward the northwest.
Please note also that the copper equivalent calculation for Emmie Bluff is a different calculation than that used in the MG14
and Windabout Mineral Resources. While the three deposits are geologically similar, they are metallurgically distinct, and it
was decided that the MG14/Windabout calculation was not applicable to Emmie Bluff.
1Notes to Table 1:
- Resource is reported at a lower cut-off grade of 1 % Cu Equivalent. Figures may not add up exactly due to rounding.
- All resources are constrained within a wireframe encapsulating the Tapley Glacial Till and Tapley Hill Formation black shale units.
- Copper (Cu), Cobalt (Co), Silver (Ag) and Zinc (Zn) have been reported in the Mineral Resource estimate. The majority of the value of the deposit
is anticipated to come from the contained copper, with smaller but material contributions from cobalt and silver. Given its low grade, zinc hoste
within the deposit is not considered by Coda to be material, but the metallurgical techniques currently being investigated by the company may
recover zinc as an incidental by-product, and therefore the company has chosen to report the zinc grade despite its low level. Details of the
copper equivalent grade calculation are given in the JORC 2012 Table that follows.
87
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ASX ADDITIONAL INFORMATION
COMPETENT PERSON AND JORC CODE – EMMIE BLUFF
The information in this statement that relates to the Mineral Resource Estimates is based on work done by Dr Michael
Cunningham of Sonny Consulting Services Pty Ltd.
Dr Cunningham is a Member of the Australasian Institute of Mining and Metallurgy and have sufficient relevant experi-
ence to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves.
The Competent Persons consent to the inclusion in this report of the matters based on the information compiled by
them, in the form and context in which it appears.
MG14 & WINDABOUT
The Windabout and MG14 Cu-Co-Ag deposits are located in the Mt Gunson district of South Australia on EL 5636. The
Windabout and MG14 Mineral Resources (the resources) are classified and reported according to the guidelines of the
2012 edition of the JORC Code below.
Windabout Indicated Resource
CU_EQ > 0.5% CUTOFF
CU_EQ > 1.0% CUTOFF
MT
17.67
CU %
0.77
CO PPM
AG G/T
CU_EQ %
492
8
1.41
MT
11.86
CU %
0.95
CO PPM
AG G/T
CU_EQ %
599
10
1.73
MG14 Indicated Resource
CU_EQ > 0.5% CUTOFF
CU_EQ > 1.0% CUTOFF
MT
1.83
CU %
1.24
CO PPM
AG G/T
CU_EQ %
334
14
1.67
MT
1.59
CU %
1.33
CO PPM
AG G/T
CU_EQ %
360
15
1.8
Classification of the Windabout and MG14 deposits takes into account data quality and distribution, spatial continuity,
confidence in the geological interpretation and estimation confidence. Because of the high confidence in the simple
geological model, grade continuity, drill hole spacing and data integrity, both the MG14 and Windabout resources have
been classified as Indicated Resource. The deposit was not classified as a Measured Resource due to the heavy reliance
on historic data without QAQC reports, and the apparent negative bias between historic and recent drilling data sets.
The resources are reported at a 0.5 and 1.0% Cu equivalent cut offs to provide a range of resource figures for financial
analysis and mineral reserve estimation. A Cu equivalent has been used to reflect, in Coda Minerals’ belief is the value
of recoverable and salable Cu and Co in the resource. Ag also has the potential to add significant value to the project,
however Ag analyses in the estimation and metallurgical test work are as yet insufficient to include in a metal equivalent
calculation.
The estimation was validated by visually checking the interpolation results against drill hole data in plan and section,
comparing input and output statistics and comparing with previous estimates. The estimate is considered to be robust
on the basis of the above checks.
Both deposits contain zones of higher copper and cobalt grades and the deposits may be amenable to mining at higher
cutoff grades.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 ASX ADDITIONAL INFORMATION
COMPETENT PERSON AND JORC CODE
This resource was prepared in accordance with the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’ (“JORC Code”) by Tim Callaghan, who is a Member of the Australian Institute
of Mining and Metallurgy (“AusIMM”), has a minimum of five years’ experience in the estimation and assessment and
evaluation of Mineral Resources of this style and is the competent Person as defined in the JORC Code. This report
accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and
context it appears.
ORE RESERVE SUMMARY
At this time, Coda has no interest in any Mineral Reserves.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CORPORATE DIRECTORY
DIRECTORS:
Keith Francis Jones – Non-Executive Chairperson
Andrew Marshall – Non-Executive Director
Colin Moorhead – Non-Executive Director
Paul Hallam – Non-Executive Director
Christopher Stevens – Chief Executive Officer
COMPANY SECRETARY:
Susan Park
REGISTERED AND CORPORATE OFFICE
6 Altona Street
West Perth
Western Australia, 6005
Telephone: (08) 6270 6331
Email: info@codaminerals.com
SHARE REGISTRY
Link Market Services Limited
Postal Address: Locked Bag A14, Sydney South NSW 1235
Perth Office: Level 12, QV1 Building, 250 St Georges Terrace,
Perth WA 6000
Phone: (08) 9211 6670
www.linkmarketservices.com.au
AUDITORS
Deloitte Touche Tohmatsu
Tower 2, Brookfield Place
123 St Georges Terrace, Perth WA 6000
STOCK EXCHANGE LISTINGS
ASX:COD
WEBSITE
www.codaminerals.com
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 CODAMINERALS.COM
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIESACN 625 763 957 ANNUAL REPORT AND FINANCIAL STATEMENTS 2022