ANNUAL REPORT
2023
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 2
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 TABLE OF CONTENTS
02
LETTER FROM THE CHAIR
04
CEO’S REPORT
06
ABOUT CODA MINERALS
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DIRECTORS’ REPORT
38
AUDITOR’S INDEPENDENCE DECLARATION
40
INDEPENDENT AUDITOR’S REPORT
44
DIRECTORS’ DECLARATION
46
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
47
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
48
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
49
CONSOLIDATED STATEMENT OF CASH FLOWS
50
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
84
ASX ADDITIONAL INFORMATION
92
CORPORATE DIRECTORY
3ToC
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 LETTER FROM THE CHAIR
Dear Shareholders,
I am pleased to present Coda Mineral’s 2023 Annual Report and to reflect on a year of transformation for our flagship assets at
Elizabeth Creek.
PUBLICATION OF ELIZABETH CREEK SCOPING STUDY
The publication of the Elizabeth Creek Copper Project Scoping Study during the year marked a huge milestone for the Company
and the culmination of more than two years of work by the Coda team.
Emmie Bluff at Elizabeth Creek is one of the largest and highest-grade undeveloped copper projects in Australia.
The Scoping Study, published in March 2023 demonstrated robust economics and a long-life, technically viable, low risk operation
for Coda Minerals. With pre-production CAPEX of just $277 million, NPV8 of $570 million, and a pre-tax IRR of 27%.
Coda’s team during this process established a viable mine plan using well-established underground mining methods conventional
equipment and processing flowsheet across MG14, Windabout and Emmie Bluff.
ONGOING OPTIMISATION AND VALUE CREATION
Since publication of the study, we have continued optimising the underground mining at Emmie Bluff through initiatives to reduce
mining costs, increase selective mining and improving resource conversion to mineable tonnes.
We have also defined multiple near-term targets to expand the Resource and commenced target generation over an approximate
28km2 area immediately to the East of Emmie Bluff. Exploration success in this ‘near-mine’ environment would add significant
overall value to Elizabeth Creek.
Coda has commenced a process to evaluate funding options for the project. The project has attracted interest from multiple
parties with discussions advancing.
Our team’s objective is to fund the feasibility process at Elizabeth Creek as well as capitalise on the IOCG intercepts at Emmie IOCG.
ELIZABETH CREEK IOCG EXPLORATION
During 2023 we significantly advanced our exploration model at Emmie IOCG with an extensive geological and geophysics-based
programme. This work has transformed our understanding of the geology at Emmie IOCG and provided an exciting second target
at Maggie IOCG approximately 6km to the south-east of Emmie IOCG. The first results from this programme were released after
the end of the financial year.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 LETTER FROM THE CHAIR
CONCLUSION
As we enter the final quarter of 2023, we continue to build on the foundation of an exceptional Scoping Study, have transformed
our understanding of exploration for both copper-cobalt and copper gold (IOCG) at Elizabeth Creek and are advancing discussions
with multiple parties in regard to funding the advancement of the project.
I would like to thank our shareholders for their support over the past year during challenging financial markets.
The trends that continue to shape our world are increasing forecasts of copper supply deficit combined with unprecedented
increases in copper demand in the medium term. With the value of our assets now demonstrated through the Scoping Study this
leaves Coda in a very strong position.
In conclusion, I thank my fellow board members, our CEO Chris Stevens and the team at Coda as well as our many advisers 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 ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CEO’S
REPORT
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CEO’S REPORT
I am pleased to look forward to the coming year as we look to build on the incredibly strong foundations of both the Elizabeth Creek
Scoping Study, and a materially improved understanding of our exploration options across both sedimentary and IOCG styles of
copper mineralisation.
The majority of the past year has been about getting on with challenging and transformative work. In the case of the copper-
cobalt that has meant completing mining, processing and economic studies culminating with the publication of the Elizabeth
Creek Scoping Study. For the IOCG, we have gone back to basics, building a detailed geological model based on drilling, multiple
geophysical surveys, and structural geology.
The Scoping Study was completed with a great level of care and technical input to allow for a detailed understanding of the project
and designed to pass due diligence with potential funding partners. The economic outputs demonstrated a robust project whilst
using assumptions more conservative than many of our peers.
We continue to optimise the copper-cobalt project underpinned by the Scoping Study with multiple updates expected in the
latter part of 2023. We have also commenced the next stage of studies advancing critical path items including approvals and
environmental monitoring.
The IOCG modelling work has left us with a revolutionised understanding of the geological model. For the first time, we can explain
why we encountered what we encountered in each drill hole and predict with much greater confidence where to drill and what to
expect. We have also generated an exciting new target at Maggie IOCG which we believe is very much worthy of drill testing.
We are working to unlock the enormous potential created by this work through funding structures and ongoing partnership
discussions. Our focus will remain very strongly on unlocking this exploration value while advancing the foundational project.
Against a challenging market backdrop, it must be remembered that copper is forecast to move into massive supply deficit at a
time of increasing demand from electrification. Although there are many competing technologies for the storage of electricity,
there is only one credible way to move electricity and that requires enormous quantities of copper.
I believe that Coda is incredibly well placed to be a part of required copper supply.
Chris Stevens
CEO
Coda Minerals Ltd
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ABOUT
CODA MINERALS
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 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 equivalent1,2.
A scoping study into the development of these three deposits was released in March of 2023 demonstrated an economically
robust project with a 14 year mine life, capable of producing approximately 25,000 tonnes of copper and 1,000 tonnes of cobalt
at steady state production levels. The project had a lifetime average AISC of USD $2.19/lb of Cu (after by-product credits) and an
approximately pre-tax NPV8 of $570M3.
1 2021.12.20 - Standout 43Mt Maiden Cu-Co Resource at Emmie Bluff, Competent Person: Dr Michael Cunningham.
2 2020.10.26 - Confirmation Statements JORC, Competent Person: Tim Callaghan.
3 2023.03.23 – Elizabeth Creek Copper-Cobalt Project Scoping Study
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ABOUT CODA MINERALS
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 mineralisation4. 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 gold5.
Coda has a dual strategy for success at Elizabeth Creek. Firstly, it is working towards the next step in the development process
for its Zambian-style copper cobalt projects by advancing technical and economic studies to build on the results of the recently
released Scoping Study, 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 Torrens Mining acquisition, Coda also owns exploration tenements in Victoria, New South Wales and
Papua New Guinea.
TOTAL AREA 701km2
BALMORAL
CLUB TERRACE
4 2021.06.22 - Thick Zone of IOCG Mineralisation Intersected at Emmie Bluff Deeps, Competent Person: Mr Matthew Weber.
5 2022.08.18 – Assays from IOCG Drilling Confirm Target Areas for Follow Up, Competent Person: Mr Matthew Weber.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ELIZABETH CREEK
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ELIZABETH CREEK
ELIZABETH CREEK HOSTS THREE DISTINCT MINERALISATION STYLES, THE ZAMBIAN-
STYLE COPPER-COBALT MINERALISATION, THE IRON OXIDE COPPER GOLD (IOCG)
MINERALISATION AND THE CATTLEGRID COPPER BRECCIA MINERALISATION. THE PRIMARY
FOCUS FOR CODA DURING THE FINANCIAL YEAR WAS TO ADVANCE A SCOPING STUDY
ON THE ZAMBIAN-STYLE COPPER-COBALT DEPOSITS AND CONDUCT A SUBSTANTIAL
GEOPHYSICAL PROGRAM ACROSS MULTIPLE IOCG PROSPECTS.
OVERVIEW
ELIZABETH CREEK
Sedimentary: Cu-Co
- 1.1Mt of Contained CuEq Defined
- Scoping Study Released March 2023:
- NPV8(Pre-tax): $570
- IRR: 26.5%
IOCG: Cu-Au
- Major IOCG mineralised system identified
- Near-term targets identified by ANT
and Gravity Survey
- High risk, high reward exploration
Cattlegrid: Cu
- Copper breccia prospect
- Extensive historical drilling
- Rapid pathway to Resource estimate
ZAMBIAN STYLE COPPER-COBALT DEPOSITS
Elizabeth Creek Copper Cobalt Project Scoping Study
In March 2023, Coda released the results of the Elizabeth Creek Copper-Cobalt Project Scoping Study, which outlined an
economically robust, long-life project with potential to further improve on several key metrics. The project has a relatively low
CAPEX by comparison to its peers, and has a competitive AISC of US$2.13/lb Cu produced, with an approximate pre-tax NPV8 of
$570M and an IRR of 26.5%.
A brief summary of key study results and metrics is provided below, however full details, including all associated caveats and
disclosures, is available at https://www.codaminerals.com/downloads/scoping-study.
Mining
Mining will consist of conventional open-pits at the Windabout and MG14 deposits and an underground, long-hole open stope
operation at Emmie Bluff. Production Targets for each deposits are set out in Table 1, below. All mining has been assumed to be
undertaken by contractors.
Processing
Coda will take a phased approach to mineral processing at Elizabeth Creek. MG14 will be the first deposit mined, during the
construction and commissioning of the downstream processing plant. Material from MG14 will be processed in a nominal 2.5 Mtpa
capacity flotation concentrator as part of Phase 1. The concentrate produced will be directly sold into the market without further
downstream processing.
Later, material produced form Windabout and Emmie Bluff will be concentrated through the same flotation plant before being
further processed through a downstream hydrometallurgical plant as part of Phase 2. This downstream plant will be centred
around the Albion Process atmospheric leach technology, and will produce copper cathode via SX/EW and battery grade cobalt
sulphate as co-products, with zinc carbonate and silver dore produced as by-prodcuts. Anticipated steady state production of
co-products is approximately 25 ktpa Cu and 1 ktpa Co.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
ELIZABETH CREEK
Infrastructure
Elizabeth Creek is already well served by transport and power infrastructure in particular, and the Scoping Study envisions that
minimal additional work will be required to upgrade these elements. An approximately 40km long haul road will be required to
ship open pit mine to the concentrator at Emmie Bluff, with electrical transmission lines running parallel to this road having
been connected at the Mt Gunson substation. The study also assumes a nominal 12 hole water borefield for onsite extraction of
groundwater and a 450 bed camp, which is expected to be sufficient for both construction and ongoing operations.
Table 1: Mineral Resources underpinning the Elizabeth Creek Copper Cobalt Project
Scoping Study
DEPOSIT NAME
MINING METHOD
RESOURCE CATEGORY
RESOURCE
PRODUCTION TARGET
MG14
OPEN PIT
100% INDICATED
1.83 Mt @ 1.24% Cu, 0.03%
Co (1.67% CuEq)
1.26Mt @ 1.42% Cu, 0.04%
Co (1.87% CuEq)
WINDABOUT
OPEN PIT
100% INDICATED
17.67 Mt @ 0.77% Cu, 0.05%
Co (1.41% CuEq)
5.96Mt @ 1.03% Cu, 0.07%
Co (1.71% CuEq)
EMMIE BLUFF
UNDERGROUND
90% INDICATED
43.3 Mt @ 1.30% Cu, 0.05%
Co (1.84% CuEq)*
26.2Mt @ 1.42% Cu, 0.04%
Co (1.86% CuEq)
Costs and Key Economic Metrics
The Scoping Study makes macroeconomic assumptions as set out in Table 3, and delivers the results summarised as Table 2.
Table 2: Summarised results of the Elizabeth Creek
Copper Cobalt Project Scoping Study
Table 3: Economic assumptions
underpinning the Elizabeth Creek
Copper Cobalt Project Scoping Study
n
o
i
t
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u
d
o
r
P
l
a
t
i
p
a
C
g
n
i
t
a
r
e
p
O
AREA
MEASURE
Mine Life
Ore Process Rate
UNIT
Years
Mtpa
%
%
Kt
Kt
Feed from Indicated Resource
Feed from Inferred Resource
Copper Produced
Cobalt Produced
Pre-Production Capital - Phase 1
A$M
Post-Production Capital - Phase 2
A$M
LOM
14
2.5
94%
6%
317
14.4
277
320
All In Sustaining Cost1
USD/t CuEq
5,987
USD/lb CuEq
2.72
l
i
s
a
c
n
a
n
F
i
Revenue
Net Cash Flow (Pre-Tax)
Net Present Value (NPV8)
Peak Negative Cash Flow
2
)
x
a
T
e
r
P
(
Internal Rate of Return (IRR)
A$M
A$M
A$M
A$M
%
Total Capital Payback3
Years
5,728
1,298
570
438
26.5%
4.75
Discount Rate
Real %
Exchange Rate
USD:AUD
Federal Corporate
Tax Rate
%
SA Government
Royalty Rates
Refined
Product
8.0%
0.68
30%
3.5%
Concentrate
5.0%
Copper Price
Cobalt Price
USD/t
USD/t
$8,800
$60,627
Silver Price
USD/Oz
$21
Zinc Price
USD/t
$2,700
1 1
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
ELIZABETH CREEK
Sensitivity Analysis
Sensitivity analysis was carried out to determine the impact of various factors on the Project’s financial performance. The
following factors were flexed:
• Exchange Rate
• Copper Revenue (Price, Recovery or Grade)
• Cobalt Revenue (Price, Recovery or Grade)
• Discount Rate
• Project CAPEX
• Project CAPEX
• Silver Revenue (Price, Recovery or Grade)
• Processing OPEX
Figure 1, below, illustrates how the estimated base case NPV ($570M) varies when each of the above factors increases or
decreases by 20%.
Figure 1 Project pre-tax NPV sensitivity to key variables. Please note that the above chart does not account for correlation
between variables and the model remains ceteris paribus.
NPV Sensitivity Analysis (A$M)
0
90
180
270
360
450
540 570
630
720
810
900
990
1080
1170
1260
1350
Exchange Rate
Copper Revenue
(Price, Recovery or Grade)
Processing OPEX
Cobalt Revenue
(Price, Recovery or Grade)
CAPEX
Discount Rate
Mining OPEX
Silver Revenue
(Price, Recovery or Grade)
The figure shows how the estimated base case pre-tax NPV of $570M varies using 20% higher and 20% lower assumptions for the key
input variables. The Project is most sensitive to exchange rates, followed by copper revenue. Flexing of all other variables result in a
change in NPV of less than $200M in either direction and, under all of the flexed scenarios, the Project’s NPV remains positive.
Events Subsequent to Year End
Subsequent to the end of the financial year, Coda has continued to optimise the Scoping Study, investigating opportunities for refinement
in underground mining techniques, ore sorting and the mineral processing flowsheet. While studies are ongoing, key improvements to
date include demonstrations of the efficacy of tails leach and reduction in costs associated with flotation reagents6.
Ongoing studies with step-change potential include:
• Mechanical cutting at Emmie Bluff, a more precise and lower cost mining method made potentially viable by the softness
and low abrasivity of the Emmie Bluff;
• XRF ore sorting, a means by which dilution can be removed from RoM ore, improving the grade of mill feed and potentially
opening up narrower seams or reducing processing CAPEX;
• Pregnant Leach Solution neutralisation with flotation tails or on-site dolomite, reducing or eliminating a major cost
associated with running the hydrometallurgical back end of the process plant, and potentially introducing additional
copper credits.
6 20.09.4 – Test Work Delivers Elizabeth Creek Flowsheet Enhancements
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
ELIZABETH CREEK
ELIZABETH CREEK - IOCG
Final assay results were received in August 2022 for IOCG drill holes DD22EBD0007W1 and DD22EBD00087. The results of the
sampling from wedge hole EBD7W1 were comparable with the intervals intersected in the parent hole EBD7. Conduits related
to mineralising fluids and corresponding with intense vuggy haematite alteration and associated with gold enrichment were
logged in both EBD7W1 and EBD8. Mineralisation within the drill holes occurred over multiple intervals a few metres thick with
moderate copper and gold grades.
Outside of drilling, exploration was focussed on geophysical surveys.
• January to February 2023: an Ambient Noise Tomography (ANT) survey was carried out by Fleet Space Technologies utilising
their real-time “Exosphere” system, a passive seismic exploration technique that makes use of pervasive seismic
noise from natural and anthropogenic sources to visualise a three dimensional subsurface shear wave model8. Four
surveys were successfully completed, three covering the combined Emmie Bluff and Emmie IOCG area, with the fourth covering
the Elaine IOCG prospect. The programme resulted in generation of a highly detailed sub-surface velocity map with clear ANT
anomalism identified coincident with the Emmie Bluff Mineral resource, as well as with other locations at the same stratigraphic
level. A large north-south trending structure was identified in the final data interpretation, that appeared to control both the
copper-gold mineralisation at Emmie IOCG and may have been structurally related to the deposition of the shale which hosts the
copper-cobalt mineralisation at Emmie Bluff9.
Figure 2 Cross section through most recent interpreted ANT model, with inverted gravity shells (nominal SG 3.5, 4.0, 4.5) at northing
6,555,600 mN, filtered by shear wave velocity >2,800 m/sec. The prominent gravity anomaly associated with a marked step change in
palaeotopography is Emmie IOCG. Emmie Bluff (blue outline) again shows coincident velocity anomalism
7 18.08.2022 - ASX Announcement - Final Assays from IOCG Drilling Confirm Target Areas for Follow Up
8 15.02.2023 - ASX Release - ANT Programme Completed at Elizabeth Creek Copper Project
9 20.04.2023 - ASX Announcement - ANT Survey Transforms Understanding of Emmie Bluff, IOCG
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
ELIZABETH CREEK
• March 2023: A high-resolution gravity survey of 3,634 total stations was carried out by DaishSat10, the same company
responsible for previous surveys in the area in 2008, 2009 and 2011. The survey covered a 65 square kilometer area
encompassing the Emmie IOCG prospect, Emmie Bluff Mineral Resource and surrounding IOCG and sediment hosted prospects.
The objective of the gravity survey was to improve the resolution of historical gravity surveys, to bring the entire prospect area
to a consistent 125m x 125m grid.
• April – September 2023: Consulting firm Mira Geoscience are preparing a comprehensive geophysical model of the Emmie
Bluff and Emmie Deeps IOCG mineral deposits and their immediate surroundings. The model will build on geologically
constrained inversions of the recently collected gravity data by Daishsat and Ambient Noise Tomography (ANT) data, as well as
historical drill results, 2D seismic, and magnetotelluric (MT) data. Work is progressing and is expected to be completed in the
third quarter of 2023.
Events Subsequent to Year End
Subsequent to the reporting period, from July to August 2023, contractors Moombarriga Geophysics carried out a ground
magnetotelluric (MT) survey11 comprising 61 stations and covering areas prospective for sediment-hosted copper-cobalt
mineralisation to the south and east of the Emmie Bluff Mineral Resource, areas identified as prospective based on coincident
anomalies resulting from the ANT passive seismic and airborne MT surveys previously carried out over Emmie Bluff. The survey
also covered several new IOCG target areas that occur beyond the existing Emmie IOCG discovery area.
The survey supplements existing geophysical datasets and will assist in further refining targets from previous 2D seismic and
ANT surveys. Ground magnetotellurics was selected as a low-impact proven technique based on the success of historical work
completed in 2010, which imaged the basin which hosts Coda’s Emmie Bluff Mineral Resource, as well as identifying the contrast
between the basement rocks and overlying cover.
10 05.04.2023 – ASX Announcement - Major Emmie IOCG Gravity Survey Completed
11 25.07.2023 - ASX Announcement - MT Survey Commences Targeting Emmie Bluff Extensions
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CAMERON RIVER
Cameron River
Drilling at Cameron River concluded in September 2022 with a total of 27 Reverse Circulation (RC) drill-holes for a total of 2,839m.
Despite initial challenges, the programme completed safely on schedule and within budget.
The drilling had targeted the surface expression of mineralisation at the Rebound, Copper Weed and Clifford prospects and the
associated Gradient Array Induced Polarisation (GAIP) and Dipole-Dipole Induced Polarisation (DDIP) geophysical anomalies, as
well as the coincident geophysical and surface geochemical anomalies at Bingo and Bluey.
A total of 711 samples comprising 4m composites of RC drill cuttings were collected and submitted to ALS in Mount Isa for
analysis. The assay results returned several intersections of weak to moderately anomalous copper predominantly associated
with drilling at the Copper Weed-Copper Weed South and Rebound trends, with gold, silver and cobalt assays displaying a weakly
positive relationship with these copper zones.
Project Review
An external consultant has been commissioned to carry out a review of the Cameron River Project, with the aim to determine
the next steps for exploration at the project. The report received suggested additional areas for investigation related to the gold
potential at Cameron River.
OTHER PROJECTS
Events Subsequent to Year End
Boolero:Tenure for the Booleroo project (EL 6917) was granted after the end of the reporting period.
Club Terrace: A limited field programme including site visits and rock chip sampling was carried out at the Club Terrace project
in Victoria in July 2023, testing across the trends of historic workings and mining activities.
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ESG
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ESG
Coda has recently published its maiden Sustainability Report, marking the Company’s commitment to enhancing its approach
to environmental, social and governance matters.
Please refer to the 2023 Sustainability Report on the Coda Minerals website for more information on the Company’s ESG principle
and goals.
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 E
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CODA TIMELINE
EXPLORATION TENURE GRANTED IN
VICTORIA
Grant of EL7637 – the Balmoral Project is prospective
for multi-elements, primarily gold, rare earths (REE)
and mineral sands.
Grant of EL9238 & EL5455 – The Club Terrace Gold Project.
SEPTEMBER 2022
CODA DIVESTS MT PIPER GOLD PROJECT
TO KALAMAZOO
Consideration package comprising a combination of upfront
cash, shares in Kalamazoo and a future production royalty.
Kalamazoo completes acquisition
of Mt Piper Gold Project in September 2022
OCTOBER 2022
$3.85M RAISE TO FAST-TRACK ELIZABETH
CREEK COPPER PROJECT STUDY
Coda raised $3.85 million at $0.24 per share to fast track
ongoing study work at the 100%-owned Elizabeth Creek Copper
Project. This raise successfully completed on the 7 November
2022.
OCTOBER 2022
DRILLING COMMENCES
AT CAMERON RIVER
The programme will consist of
approximately 30 drill holes for
an estimated 3,000m of reverse
circulation drilling over the Bluey,
Bingo, Copper Weed, Rebound and
Clifford prospects.
AUGUST 2022
MAIDEN DRILL PROGRAM
COMPLETED AT CAMERON
RIVER
Initial drilling reveals anomalous
copper at multiple prospects with
several key geophysical anomalies still
unexplained.
OCTOBER 2022
MINING STUDY COMPLETED
AT ELIZABETH CREEK
Positive Scoping-level mining study
completed at both underground and open pit
deposits. Study confirms a technically viable
pathway to achieve steady-state 2.5Mtpa
production.
NOVEMBER 2022
ALBION PROCESS™ RESULTS IN
99% CU & CO RECOVERIE
Successful test work opens up the potential
for relatively lower cost on-site production
of high value products amenable for sale into
the high-growth EV and battery markets.
JULY 2022
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
18
18
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CODA TIMELINE
ANT GEOPHYSICS COMMENCES
AT EMMIE IOCG
Ambient Noise Tomography (ANT) survey has
commenced at Emmie Bluff, covering the Emmie
IOCG copper-gold discovery and the Emmie Bluff
copper-cobalt deposits. Survey completed on
15 February 2023. Preliminary models show
exceptional applicability to both IOCG and
sedimentary deposits, several target areas
identified.
JANUARY 2023
MAJOR IOCG GRAVITY SURVEY
COMMENCED
Survey consisted of 3,634 stations covering
65 sq2 area encompassing the Emmie IOCG
prospect, Emmie Bluff and surrounding IOCG and
sed hosted deposits. Survey completed on
5 April 2023. Results to drive detailed inversions
and support the recent ANT survey to generate
IOCG drill targets.
APRIL 2023
ELIZABETH CREEK SCOPING
STUDY RELEASE
Scoping Study confirms economically
robust, globally competitive copper-
cobalt project in South Australia, with
potential for further improvement.
Further optimisation studies underway.
Key Metrics:
NPV8 (Pre-Tax): $570,
IRR: 26.5%,
AISC: US$2.19/lb Cu Produced
MARCH 2023
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 7 6 3 957
ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
19
19
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’
REPORT
20
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
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 2023 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:
Ecograf Limited
(Appointed May 2023)
Former directorships in last 3 years:
Ora Banda Mining Limited
(April 2019 to September 2022)
Mr Andrew Marshall
I Eng (UK), MAICD
Non-Executive Director
Appointed: 19 July 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 is the former Chairman of Deloitte Australia and served for 10 years on the
Board of Deloitte Australia. He is the former Chairman of Gindalbie Metals Limited and
Cannings Purple and former Non-Executive Director of ASX listed Company Ora Banda
Minerals 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.
Most recently Mr Marshall oversaw the delivery of the Goldfields, Goldroad Gruyere Gold
Project as Chairman of the Technical Steering Committee.
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.
21
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
NAME & QUALIFICATIONS
EXPERIENCE AND SPECIAL RESPONSIBILITIES
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)
Ramelius Resources Ltd
(Appointed December 2022)
Former directorships in last 3 years:
Merdeka Copper Gold Ltd
(January 2016 to July 2020)
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)
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 36 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 and Ramelius 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).
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 Chris Stevens
BA (Hons), MA (Oxon), MSc, GAICD,
FAusIMM
Chief Executive Officer
Appointed: 26 April 2018
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.
Former directorships in last 3 years:
Enterprise Metals Limited
(October 2021 to January 2023)
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.
22
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
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 primarily focused on the progression of exploration and
evaluation activities associated with the Elizabeth Creek Copper Cobalt Project (“Elizabeth Creek”) in South Australia. The
Company also advanced exploration work at the Cameron River Copper Gold Project (“Cameron River”) as well as engaging in
the evaluation of projects and potential joint ventures with other mining companies to explore for minerals.
REVIEW OF OPERATIONS
Coda 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 its 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% CuEq1) containing approximately 560kt copper, 20kt cobalt, 15.5Moz silver and 66kt zinc
(800kt CuEq1). 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% CuEq1) and MG14 (1.8Mt @ 1.67% CuEq1)
deposits. Collectively, the three resources at Elizabeth Creek now host a total of 1.1 million tonnes of contained copper equivalent.
In March 2023, Coda released the results of the Elizabeth Creek Copper-Cobalt Project Scoping Study, which outlined an
economically robust, long-life project with potential to further improve on several key metrics. The project has a relatively low
CAPEX by comparison to its peers, and has a competitive AISC of US$2.13/lb Cu produced, with an approximate pre-tax NPV8 of
$570M and an IRR of 26.5%.
Coda 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, carrying out detailed optimisation in key areas of the successful
Scoping Study to enhance 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 historical drilling. The large scale ongoing geophysical
analysis will assist in making decisions about drill target locations and is expected to result in the delineation of multiple new,
high priority targets
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.
1. See on statement regarding metal equivalent calculations on page 83.
23
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Key events for the year ended 30 June 2023:
•
Completion of the Elizabeth Creek Copper-Cobalt Scoping Study demonstrating robust economics from the development of a
low-technical risk operation in a Tier-1 location. Key Scoping Study highlights include:
o Average forecast steady-state annual production of approximately 25,000tpa copper and 1,000tpa cobalt at a lifetime
average grade of 1.86% CuEq (1.29% Cu and 515ppm Co);
o Pre-production CAPEX of approximately $277 million. Payback period for total capital of approximately 4.75 years
(pre-tax);
o Estimated pre-tax NPV8 of approximately $570 million and 26.5% IRR; and
o Total pre-tax revenue of approximately $5.73 billion over the life-of-mine.
•
Tight-spaced gravity survey completed over Emmie IOCG and Ambient Noise Tomography (ANT) geophysical survey
completed over Emmie IOCG and Elaine. Detailed interpretation of Emmie IOCG ANT results released, transforming the
Company’s understanding of the IOCG opportunity and the potential for extensions to the shallower Emmie Bluff copper-
cobalt mineralisation.
• Maiden drill program completed at Copper Weed/Rebound and Bluey/Bingo trends of the Cameron River Copper-Gold Project,
with results released in October 2022. On 3 November 2022, Coda exceeded the Stage 1 expenditure threshold of $1 million in
exploration expenditure under the Cameron River Farm-in and Joint Venture Agreement, and notified its joint venture partner,
Wilgus Investments Pty Ltd. Consequently, Coda has the right to a 51% interest in the Cameron River Project tenements.
•
•
Coda completed the divestment of the Mt Piper Project (comprising (EL6775, EL7331, EL7337, EL7366, EL7380 and application
ELA7481) to Kalamazoo Resources Limited, and was granted three tenements in Victoria at Club Terrace (EL7342 and EL7584)
and Balmoral (EL7637).
In November 2022 the Company raised $3.8 million through a placement resulting in the issuance of 15.9 million new shares.
There were no special terms or features attached to the shares on offer. Directors of the Company also applied for 1,341,667
shares in total to raise an additional $322,000, and this was approved by shareholders at the Extraordinary General Meeting
on the 7th of February 2023.
FINANCIAL RESULTS
The net loss for the year ended 30 June 2023 was $7,762,665 (net loss for the year ended 30 June 2022 was $14,210,882).
As at the reporting date, the Company has $4,717,592 of cash reserves.
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 5th of July 2023, 994,437 performance rights were issued to employees under the Employee Incentive Plan;
On the 5th of July 2023, 46,316 performance rights were cancelled that were under the Employee Incentive Plan; and
On the 5th of July 2023, 359,269 Coda shares were issued to employees upon the exercise of vested performance rights that
were under the Employee Incentive Plan.
24
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 20233
ONGOING WORK
ELIZABETH CREEK COPPER COBALT PROJECT
Scoping study
Coda has made material progress on multiple optimisation projects including the applicability of XRF ore sorting to the Emmie
Bluff deposit and ongoing efforts to improve the metallurgical flowsheet for the Elizabeth Creek Copper Cobalt Project. Final
reports from these work programmes remain pending and will be released to market as soon as possible.
Exploration
In July 2023 Coda initiated a 61 station ground magnetotelluric survey immediately adjacent to the Emmie Bluff Mineral Resource.
This survey, which is designed to complement a similar historical survey completed in 2010, will assist in defining the geometry of
the basin which hosts Emmie Bluff, as well as identifying any potential similar extensional basins in the highly prospective regions
to the east and southeast of the existing Resource. The survey will also cover prospective IOCG targets in the area.
OTHER PROJECTS
Exploration
The Company was informed that the application process had formally commenced for a 73km2 package of ground (ELA
2023/00034) immediately adjacent to the Elizabeth Creek Copper Cobalt Project. The Company considers the ground prospective
for sediment-hosted copper-cobalt deposits similar to the nearby MG14 and Windabout deposits.
Rock chip samples from Coda’s Club Terrace Project in Victoria were submitted for assay post year end and results are pending.
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 (Chair)
KF Jones
A Marshall
KF Jones (Chair)
A Marshall
P Hallam
C Moorhead
25
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
DIRECTORS’ MEETINGS
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
9
9
9
9
9
9
9
9
9
9
3
3
3
3
3
3
3
3
3
3
2
2
2
2
2
2
2
2
2
2
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.
KEY BUSINESS RISK
The Company’s exploration and evaluation operations will be subject to the normal risks of mineral exploration. The material
business risks that may affect the Company are summarised below.
FUTURE CAPITAL RAISINGS
The Company’s ongoing activities may require substantial further financing in the future. The Company will require additional
funding to continue its exploration and evaluation operations on its projects with the aim to identify economically mineable
reserves and resources. Any additional equity financing may be dilutive to shareholders, may be undertaken at lower prices than
the current market price and debt financing, if available, may involve restrictive covenants which limit the Company’s operations
and business strategy. Although the Directors believe that additional capital can be obtained, no assurances can be made that
appropriate capital or funding, if and when needed, will be available on terms favourable to the Company or at all. If the Company is
unable to obtain additional financing as needed, it may be required to reduce, delay or suspend its operations and this could have a
material adverse effect on the Company’s activities and could affect the Company’s ability to continue as a going concern.
26
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
EXPLORATION RISK
The success of the Company depends on the delineation of economically mineable reserves and resources, access to required
development capital, movement in the price of commodities, securing and maintaining title to the Company’s exploration and
mining tenements and obtaining all consents and approvals necessary for the conduct of its exploration activities. Exploration on
the Company’s existing tenements may be unsuccessful, resulting in a reduction in the value of those tenements, diminution in
the cash reserves of the Company and possible relinquishment of the tenements. The exploration costs of the Company are based
on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and assumptions
are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these estimates and
assumptions. Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in
practice, which may materially and adversely affect the Company’s viability. If the level of operating expenditure required is higher
than expected, the financial position of the Company may be adversely affected.
MINERAL RESOURCE ESTIMATE RISK
Mineral resource estimates are expressions of judgement based on knowledge, experience and industry practice. These
estimates were appropriate when made but may change significantly when new information becomes available. There are
risks associated with such estimates. Mineral resource estimates are necessarily imprecise and depend to some extent on
interpretations, which may ultimately prove to be inaccurate and require adjustment. Adjustments to resource estimates could
affect the Company’s future plans and ultimately its financial performance and value. Cobalt, copper,sliver and zinc metal
price fluctuations, as well as increased production costs or reduced throughput and/or recovery rates, may render resources
containing relatively lower grades uneconomic and may materially affect resource estimations.
REMUNERATION REPORT – AUDITED
The directors present the Coda Minerals Ltd 2023 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
EXECUTIVE DIRECTORS
Non-Executive Director & Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Chris Stevens
Chief Executive Officer & Executive Director
OTHER EXECUTIVES
Kudzai Mtsambiwa
Chief Financial Officer
27
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(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 the previous financial year. 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 and this was subsequently updated on 9 November 2022 following shareholder approval. 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.
28
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(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) Voting and comments made at the company’s 2022 Annual General Meeting (‘AGM’)
At the 2022 AGM, 99% of the total votes cast in the poll supported the adoption of the remuneration report for the year ended
30 June 2022. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
(e) 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 2023 (The Company listed on 28 October 2020).
Revenue
EBITDA
EBIT
Net loss before tax
Net loss after tax
Total comprehensive loss
Share price at start of year
Share price at end of year
30 JUNE 2023
30 JUNE 2022
30 JUNE 2021
$
-
(7,762,070)
(7,924,530)
(7,762,665)
(7,762,665)
(7,846,540)
$/SHARE
$0.26
$0.21
$
-
(14,070,685)
(14,218,215)
(14,210,882)
(14,210,882)
(14,210,882)
$/SHARE
$1.25
$0.26
$
-
(6,401,000)
(6,523,750)
(6,523,291)
(6,523,291)
(6,523,291)
$/SHARE
$0.302
$1.25
Basic earnings per share
(0.06)
(0.14)
(0.09)
CENTS/SHARE
CENTS/SHARE
CENTS/SHARE
2. The Company listed on ASX on 28 October 2020 at $0.30 per share.
29
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(f) 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
2023
SALARY
& FEES BONUS(iii)
NON-
MONETARY(ii)
ANNUAL
LEAVE
MOVEMENT(i)
SUPER-
ANNUATION
PERFOR-
MANCE
RIGHTS OPTIONS
TOTAL
REMUNER-
ATION
LINKED TO
PERFOR-
MANCE
$
$
$
$
$
$
$
$
%
Non-executive directors
Keith F.
Jones
Andrew
Marshall
Colin
Moorhead(iv)
100,000
50,000
53,937
Paul Hallam 50,000
253,937
Executive directors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,500
5,250
1,313
5,250
22,313
-
-
-
-
-
28,000
138,500
9,333
64,583
9,333
64,583
9,333
64,583
55,999
332,249
-
-
-
-
Chris
Stevens
328,997
90,610
328,997
90,610
3,600
3,600
13,117
13,117
25,292
25,292
98,736
28,000
588,352
32%
98,736
28,000
588,352
Other executives
Kudzai
Mtsambiwa
Total
Notes:
235,000
49,925
235,000
49,925
3,600
3,600
5,662
5,662
25,216
25,216
35,073
35,073
-
-
354,476
354,476
24%
817,934
140,535
7,200
18,779
72,821
133,809
83,999
1,275,077
(i) 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.
(ii) Non-monetary benefits relate to office car parking.
(iii) The FY23 bonus was approved by the Remuneration Committee in June 2023 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 FY23
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 FY23
period, the cash bonus paid to the CEO was 26% of TFR and the cash bonus paid to the CFO was 19% of TFR.
(iv) 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.
30
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
FY23 KPIs were set based on the following criteria:
AREA
THRESHOLD
50%
1. Safety,
Environment
and Heritage
76-100% Construction
and Mining Industry
benchmark LTIFR.
TARGET
75%
EXCEED
100%
WEIGHT
51-75% Construction and Mining
Industry benchmark LTIFR.
≤50% Construction and Mining
Industry benchmark LTIFR.
2. Adherence
to Budget
3. Share Price
4. Scoping
Study
5. Exploration
& Business
Development
Adherence to
approved FY23 budget
with utilisation of
contingency and minor
overruns or variations.
Share price performance
in top 50% of selected
basket of peers.
Completion and delivery
of board approved
Scoping Study for the
Elizabeth Creek Copper
Project.
Adherence to FY23 budget with
strong budgetary controls and
no material overruns or material
variations.
Share price performance in top
75% of selected basket of peers.
Completion and delivery of board
approved Scoping Study for the
Elizabeth Creek Copper Project
with an NPV:CAPEX ratio > 0.5:1
and board approved funding plan
to proceed with critical path PFS
items.
Completion of ANT and
Tight Spaced Gravity
surveys with clear
go-forward targets
with board approval to
proceed and/ or material
progress towards a
board approved M&A
transaction.
Completion of geophysical
programmes and completion
of associated board approved
drilling programmes leading to
discovery of economic grade
mineral intercepts remaining
open for continued exploration.
An/ or completion of a material
board approved M&A transaction.
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.
Completion and delivery of board
approved Scoping Study for the
Elizabeth Creek Copper Project
with an NPV:CAPEX ratio > 1:1
and board approved funding plan
to proceed into PFS.
Completion of geophysical
programmes and completion
of associated board approved
drilling programmes leading to
discovery of economic grade
mineralisation of significant
scale and project impact. And/ or
completion of a board approved
M&A transaction leading to
increased JORC Resource base.
10%
20%
30%
25%
15%
In June 2023 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
Safety
10%
Exceed
100%
Budget
Share Price
Scopting Study
20%
30%
Exceed
Threshold
100%
50%
25%
Exceed
100%
Exploration &
Business Development
15%
Threshold
50%
31
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(f) KMP remuneration expenses (continued)
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 (iv)
-
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.
32
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(g) KMP contractual arrangements
Executive directors and other executives
COMPONENT
EXECUTIVE DIRECTOR
CHRIS STEVENS
OTHER EXECUTIVE
KUDZAI MTSAMBIWA
Total Fixed remuneration $388,500 inclusive of superannuation
$ 276,501 inclusive of superannuation
Contract duration
Ongoing contract
Notice by the
individual/company
4 months’ notice (individual)
6 months’ notice (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.
Termination of
employment (with cause)
or by the individual
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.
Non-executive directors
COMPONENT
Board base fees plus superannuation (pa)
Additional fees (pa):
CHAIR
$100,000
Audit & Risk Management Committee
Remuneration & Nomination Committee
-
-
MEMBER
$50,000
-
-
All non-executive directors enter into a service agreement with the company in the form of a letter of appointment. The letter
summarises the board policies and terms, including remuneration, relevant to the office of director. Superannuation paid
at the legislated rate is excluded from base directors fees and where a director has a superannuation guarantuee employer
shortfall exemption certificate from the Australian Taxation Office, the shortfall in superannuation is paid as directors fees.
(h) KMP share holding
Details of fully paid ordinary shares held by KMP during the financial year is set out below:
2023
OPENING
BALANCE
PURCHASES
ON-MARKET
RECEIVED ON
EXERCISE OF
PERFORMANCE
RIGHTS
PURCHASES
FROM SHARE
PLACEMENT
NET OTHER
CHANGE
CLOSING
BALANCE
Non-executive directors
Keith F. Jones
Andrew Marshall
7,110,801
229,293
Colin Moorhead
500,000
Paul Hallam
1,248,888
Executive directors
-
-
-
-
-
-
-
-
733,334
100,000
200,000
100,000
Chris Stevens
338,920
19,254
34,4151
208,333
Other executives
Kudzai
Mtsambiwa
-
-
-
1. The shares were issued for nil exercise price upon the exercise of performance rights on 12 July 2022.
-
-
-
-
-
-
7,844,135
329,293
700,000
1,348,888
600,922
-
33
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
(h) KMP share holding (continued)
Options
No options were granted to directors or KMP during the 30 June 2023 financial year. The following tables summarises
information relevant to options held by directors and KMP as at 30 June 2023.
GRANT
DATE
NUMBER
GRANTED
NUMBER
VESTED
FAIR VALUE
AT GRANT DATE
($)
3/7/2020
3/7/2020
3/7/2020
3/7/2020
2,000,000
2,000,0001
666,666
666,6661
666,667
666,667
666,6671
666,6671
112,000
37,333
37,333
37,333
EXPIRY
DATE
3/7/2024
3/7/2024
3/7/2024
3/7/2024
NAME
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Executive directors
Chris Stevens
3/7/2020
2,000,000
2,000,0001
112,000
3/7/2024
Other executives
Kudzai Mtsambiwa
-
-
-
-
-
Notes:
1. All Options have an exercise price of $0.2145, an expiry date of 3 July 2024 and were 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 $0.30 in the 30 June 2021 financial year.
Details of the movement in options held by directors and KMP during the financial year is set out below:
2023
Non-executive directors
OPENING
BALANCE
VESTED
DURING PERIOD
EXPIRED
DURING PERIOD
NET OTHER
CHANGE
CLOSING
BALANCE
Keith F. Jones
2,000,000
Andrew Marshall
666,666
Colin Moorhead
666,667
Paul Hallam
666,667
Executive directors
Chris Stevens
2,000,000
Other executives
Kudzai Mtsambiwa
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
666,666
666,667
666,667
2,000,000
-
-
-
-
-
-
34
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 REMUNERATION REPORT - AUDITED
FOR THE YEAR ENDED 30 JUNE 2023
Performance rights
The following tables summarises information relevant to performance rights held by directors and KMP as at 30 June 2023.
NAME
GRANT DATE
Non-executive directors
NUMBER
GRANTED
NUMBER
VESTED
FAIR VALUE
AT GRANT DATE
($)
EXERCISE
DATE
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Zhu Changjiang
Executive directors
Chris Stevens
Other executives
-
-
-
-
-
-
-
-
-
-
19/11/2021
9/11/2022
103,2461
471,6022
Kudzai Mtsambiwa
12/07/2022
197,9032
-
-
-
-
-
34,415
-
-
-
-
-
-
-
-
-
-
-
-
85,694
122,616
19/11/2026
9/11/2027
57,392
9/11/2027
Notes:
1. 1/3 of the performance rights vested on 1 July 2023 and were excersied on 5 July 2023
1/3 of the performance rights vest on 1 July 2024.
2. 1/3 of the performance rights vested on 1 July 2023 and were excersied on 5 July 2023
1/3 of the performance rights vest on 1 July 2024.
1/3 of the performance rights vest on 1 July 2025.
3. Performance rights have an exercise price of nil.
Details of the movement in performance rights held by directors and KMP during the financial year is set out below:
OPENING
BALANCE
ISSUED
DURING PERIOD
EXPIRED
DURING PERIOD
NET OTHER
CHANGE
CLOSING
BALANCE
2023
Non-executive directors
Keith F. Jones
Andrew Marshall
Colin Moorhead
Paul Hallam
Executive directors
-
-
-
-
-
-
-
-
-
-
-
-
Chris Stevens
103,246
471,602
(34,415)
Other executives
Kudzai Mtsambiwa
-
197,903
-
Other transactions with key management personnel and their related parties
There have been no other related party transactions during the reporting period.
END OF AUDITED REMUNERATION REPORT.
-
-
-
-
-
-
-
-
-
-
540,433
197,903
35
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
AUDITOR
RSM Australia Partners was appointed the Group’s auditor on the 1st of November 2022 and continues in office in accordance with
section 327 of the Corporations Act 2001.
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 2023. The Company did not provide any insurance or indemnification for the auditors of the Company.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of
the company for all or part of those proceedings.
AUDIT AND NON-AUDIT SERVICES
Details of the amounts paid to the auditor of the Company, RSM Australia Partners, and its related practices for audit and non-
audit services provided during the period are set out below:
Auditors of the Company – RSM Australia Partners
RSM Australia Partners and related network firms
Audit and review of financial reports
Other services - Tax consulting services
30 June 2023
$
39,000
13,000
52,000
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are
outlined in above. The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by
another person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed above do not compromise the external auditor’s independence
requirements of the Corporations Act 2001 for the following reasons:
•
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the
auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics
for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or
auditing the auditor’s own work, acting in a management or decision-making capacity for the company, acting as advocate for
the company or jointly sharing economic risks and rewards.
36
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
ROUNDING OF AMOUNTS
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest nearest dollar.
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 38 and forms part of the Directors’ Report for the year ended 30 June 2023.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors:
K F Jones
Director
26 September 2023
Perth, Australia
37
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 AUDITOR’S
INDEPENDENCE
DECLARATION
38
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 AUDITOR’S INDEPENDENCE
DECLARATION
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Coda Minerals Ltd for the year ended 30 June 2023, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
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.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 26 September 2023
MATTHEW BEEVERS
Partner
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
39
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 INDEPENDENT AUDITOR’S
REPORT
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 92619100
F +61 (0) 8 92619111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Coda Minerals Ltd
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 2023, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board's APES 110 Code of Ethics for Professional Accountants (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.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
40
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
INDEPENDENT AUDITOR’S
REPORT
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key Audit Matter
Exploration and Evaluation Assets
Refer to Note 13 in the financial statements
The Group has capitalised exploration and
evaluation assets with a carrying value of
$17,926,175 as at 30 June 2023.
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the asset including:
Determination of whether the expenditure can
be associated with finding specific mineral
resources, and
that
expenditure is allocated to an area of interest;
the basis on which
Determination of whether exploration activities
have progressed to the stage at which the
existence of an economically recoverable
mineral reserve may be assessed; and
Assessing whether
of
impairment are present, and if so, judgments
applied
to determine and quantify any
impairment loss.
indicators
any
How our audit addressed this matter
Our audit procedures included:
Assessing the Group’s accounting policy for
Accounting
Australian
with
compliance
Standards;
Assessing whether the Group’s right to tenure of
each relevant area of interest is current;
Agreeing, on a sample basis, exploration and
evaluation expenditure incurred during the year
to
including
assessing whether all amounts have been
accounted for in accordance with the Group’s
accounting policy;
documentation,
supporting
Assessing and evaluating management’s
assessment that no indicators of impairment
existed at the reporting date;
Assessing management’s determination
that
exploration and evaluation activities have not yet
the existence or
reached a stage where
otherwise of economically recoverable reserves
may be reasonably determined;
Enquiring with management and
reading
budgets and other supporting documentation to
corroborate that active and significant operations
in, or relation to, each relevant area of interest
will be continued in the future; and
Assessing the appropriateness of the disclosures
in financial report.
41
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
INDEPENDENT AUDITOR’S
REPORT
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2023, but does not include the financial
report and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the 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 have
no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors' report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Coda Minerals Ltd., for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
42
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
INDEPENDENT AUDITOR’S
REPORT
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.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 26 September 2023
MATTHEW BEEVERS
Partner
4 3
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
DIRECTORS’
DECLARATION
44
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 DIRECTORS’ DECLARATION
FOR THE PERIOD ENDED 30 JUNE 2023
1.
In the opinion of the directors of Coda Minerals Ltd (“the Group”):
(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 Group as at 30 June 2023 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 Group will be able to pay its debts as and when they become due and
payable.
2. The directors have been given the declarations required by section 295A of the Corporations Act 2001 for the financial year
ended 30 June 2023.
3. 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 26th day of September 2023.
Signed in accordance with a resolution of the directors.
KF Jones
Director
4 5
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
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)
6
30 JUNE 2023
30 JUNE 2022
$
107,164
(4,310,787)
(3,370,309)
(188,138)
(162,460)
$
791,996
(3,254,014)
(11,420,307)
(188,360)
(147,530)
(7,924,530)
(14,218,215)
164,180
(2,315)
13,950
(6,617)
(7,762,665)
(14,210,882)
-
-
Loss for the period attributable to owners of the parent
(7,762,665)
(14,210,882)
Other comprehensive income
Fair value movement on financial asset
(83,875)
-
Total comprehensive (loss) for the period attributable
to owners of the parent
(7,846,540)
(14,210,882)
Earnings per share
Basic and diluted (loss) per share
23
(0.06)
(0.14)
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 ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2023
CURRENT ASSETS
Cash and cash equivalents
Receivables
Assets classified as held for sale
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial assets at fair value through other
comprehensive income
Receivables
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
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Capital contribution reserve
Share based payment reserve
Revaluation reserve
Accumulated losses
30 JUNE 2023
30 JUNE 2022
NOTE
$
$
7
8
9
10
8
11
12
13
15
16
17
18
19
19
19
4,717,592
77,572
-
224,185
5,019,349
175,375
150,328
165,812
117,887
17,926,175
18,535,577
8,178,668
171,015
559,250
233,564
9,142,497
-
95,000
305,097
131,220
17,926,175
18,457,492
23,554,926
27,599,989
581,587
269,658
7,668
858,913
1,426,773
197,359
98,400
1,722,532
858,913
1,722,532
22,696,013
25,877,457
44,137,422
12,040,106
1,368,926
(83,875)
40,229,393
12,040,106
611,859
-
(34,766,566)
(27,003,901)
TOTAL EQUITY
22,696,013
25,877,457
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.
4 7
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
CAPITAL
CONTRIBUTION
RESERVE
SHARE
BASED
PAYMENTS
RESERVE
RE-
VALUATION
RESERVE
$
$
ISSUED
CAPITAL
$
40,229,393
12,040,106
611,859
-
-
-
4,131,756
(266,790)
43,063
-
-
-
-
-
-
-
-
-
-
-
-
-
(43,063)
800,130
ACCUMULATED
LOSSES
TOTAL
$
(27,003,901)
25,877,457
(7,762,665)
(7,762,665)
$
-
-
(83,875)
-
(83,875)
(83,875)
(7,762,665)
(7,846,540)
-
-
-
-
-
-
-
-
4,131,756
(266,790)
-
800,130
44,137,422
12,040,106
1,368,926
(83,875)
(34,766,566)
22,696,013
23,473,301
12,040,106
263,444
-
-
16,756,092
-
-
-
-
-
-
-
-
-
-
185,467
162,948
-
-
-
-
-
-
(12,793,019)
22,983,832
(14,210,882)
(14,210,882)
(14,210,882)
(14,210,882)
-
16,756,092
-
-
185,467
162,948
40,229,393
12,040,106
611,859
-
(27,003,901)
25,877,457
Year ended 30 June 2023
Opening balance at
1 July 2022
Loss for the year
Fair value movement
on financial asset
Total comprehensive
loss for the year
Shares issued under
placement
Share issue costs
Transferred from reserve
upon excerise
Share based payments
to Directors, employees
& lead advisor
Closing balance at
30 June 2023
Year ended 30 June 2022
Opening balance at
1 July 2021
Loss for the year
Total comprehensive
loss for the year
Issue of ordinary shares
consideration on
acquisition of Torrens
Mining Limited
Share based payment
consideration on
acquisition of Torrens
Mining Limited
Share based payments to
Directors and Employees
Closing balance at
30 June 2022
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 ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 JUNE 2023
30 JUNE 2023
30 JUNE 2022
NOTE
$
$
Cash flows from operating activities
Proceeds from government grants and tax incentives
5
Payments for exploration and evaluation expenditure
Payments for administration, corporate finance activities and
other expenditure
Interest received
Net cash used in operating activities
26
Cash flows from investing activities
Payments for property, plant & equipment
Proceeds from sale of Mt Piper
Cash acquired, net of payments for the acquisition of subsidiary
Net cash from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments associated with the issue of shares
Premium on options issued
Repayment of lease liabilities
Net cash from / (used in) financing activities
69,907
(4,458,336)
(3,281,682)
164,180
(7,505,931)
(18,312)
300,000
-
281,688
4,131,756
(266,789)
375
(102,175)
3,763,167
791,996
(12,322,615)
(2,815,944)
13,950
(14,332,613)
(86,254)
-
901,252
814,998
-
-
-
(90,827)
(90,827)
Net decrease in cash and cash equivalents
(3,461,076)
(13,608,442)
Cash and cash equivalents at beginning of the year
8,178,668
21,787,110
Cash and cash equivalents at the end of the year
4,717,592
8,178,668
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.
4 9
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES
TO THE FINANCIAL
STATEMENTS
50
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023 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. SIGNIFICANT ACCOUNTING POLICIES
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 26th September 2023.
b) New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended
Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
c) Basis of preparation
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 1(f).
d) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 21.
e) 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.
51
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
e) Basis of consolidation (continued)
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.
f) Foreign currency translation
The financial statements are presented in Australian dollars, which is the Group’s functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
g) 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 2023, the Group had cash and cash equivalents of $4,717,592 and a net asset position of $22,696,013 compared
to 30 June 2022, when it had cash and cash equivalents of $8,178,668 and a net asset position of $25,877,457. For the year
ended 30 June 2023, the Group recorded a loss of $7,762,655 and experienced operating cash outflows of $7,505,931. For
the period ended 30 June 2022, the Group recorded a loss of $14,210,882 and experienced net operating cash outflows of
$14,332,613.
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 over the next 12 months.
h) 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.
i) 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.
52
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
j) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity’s normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
k) Goods and services tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office (‘ATO’). In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
Cash flows are presented in the statement of cash flows on a gross basis.
l) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
m) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
n) Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model
within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting
mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it’s carrying value is written off.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
5 3
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
o) Mining assets
Capitalised mining development costs include expenditures incurred to develop new ore bodies to define further
mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain production. Mining development also
includes costs transferred from exploration and evaluation phase once production commences in the area of interest.
Amortisation of mining development is computed by the units of production basis over the estimated proved and probable
reserves. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which can
be recovered in the future from known mineral deposits. These reserves are amortised from the date on which production
commences. The amortisation is calculated from recoverable proven and probable reserves and a predetermined percentage
of the recoverable measured, indicated and inferred resource. This percentage is reviewed annually.
Restoration costs expected to be incurred are provided for as part of development phase that give rise to the need for
restoration.
p) Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in
the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit
or loss as incurred.
q) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
54
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the consolidated entity receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
r) Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest dollar.
s) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2023. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
t) 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.
u) COVID-19
The COVID-19 pandemic affecting Australia and the world 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 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.
5 5
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to
assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions
on historical experience and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates
and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to note 19 for further information.
Fair value measurement hierarchy
The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based
on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted)
in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other
than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3:
Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and
therefore which category the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted
cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs. Refer to
note 24 for further information.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or
written down.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is
exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an
extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered
may include the importance of the asset to the consolidated entity’s operations; comparison of terms and conditions to prevailing
market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption
to replace the asset. The consolidated entity reassesses whether it is reasonably certain to exercise an extension option, or not
exercise a termination option, if there is a significant event or significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount
future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based
on what the consolidated entity estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a
similar value to the right-of-use asset, with similar terms, security and economic environment.
56
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Employee benefits provision
As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting date are
recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the
reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion
and inflation have been taken into account.
Exploration and evaluation costs
Exploration and evaluation costs incurred in the acquisition of rights to explore have been capitalised on the basis that the
consolidated entity will commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes
determining expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or
sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of
reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in
commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off
in the period in which this determination is made
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 six 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, the Balmoral 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.
5 7
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
SEGMENT INFORMATION (continued)
The following is an analysis of the Group’s results by reportable operating segment for the full year under review:
OPERATING SEGMENT RESULTS FOR THE YEAR ENDED 30 JUNE 2023
ELIZABETH
CREEK
CAMERON
RIVER
CLUB
TERRACE
MOUNT
PIPER BALMORAL
LALOKI-
RIGO
CORPORATE/
OTHER
CON-
SOLIDATED
Revenue and
other income
Revenue
$
-
Other Income
69,907
Total revenue
and other income
69,907
$
-
-
-
$
-
-
-
$
-
-
-
$
-
-
-
$
-
-
-
$
-
$
-
37,257
107,164
37,257
107,164
EBITDA
(2,058,410)
(1,173,101)
(8,685)
(19,144)
(7,278)
(33,784)
(4,461,668)
(7,762,070)
Depreciation and
amortisation
Interest revenue
Finance costs
Total loss before
income tax expense
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(162,460)
(162,460)
164,180
164,180
(2,315)
(2,315)
(2,058,410)
(1,173,101)
(8,685)
(19,144)
(7,278)
(33,784)
(4,462,263)
(7,762,665)
Income tax expense
-
-
-
-
-
-
-
-
Total loss after
income tax expense
Fair value movement
on financial asset
Total
comprehensive loss
(2,058,410)
(1,173,101)
(8,685)
(19,144)
(7,278)
(33,784)
(4,462,263)
(7,762,665)
-
-
-
-
-
-
(83,875)
(83,875)
(2,058,410)
(1,173,101)
(8,685)
(19,144)
(7,278)
(33,784)
(4,546,138)
(7,846,540)
ASSETS AND LIABILITIES AS AT 30 JUNE 2023
ELIZABETH
CREEK
CAMERON
RIVER
CLUB
TERRACE
MOUNT
PIPER BALMORAL
LALOKI-
RIGO
CORPORATE/
OTHER
CON-
SOLIDATED
$
$
$
Assets
Total segment assets
17,882,330
362,228
1,250
Liabilities
Total segment
liabilities
Included in
segment assets are
Additions to
non-current assets
(230,597)
(4,000)
(6,685)
-
-
-
$
-
-
-
$
-
$
$
$
16,649
5,292,469
23,554,926
(6,685)
(31,503)
(579,444)
(858,913)
-
-
193,687
193,687
58
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The following is an analysis of the Group’s comparative results by reportable operating segment for the prior year:
OPERATING SEGMENT RESULTS FOR THE YEAR ENDED 30 JUNE 2022
ELIZABETH
CREEK
CAMERON
RIVER
CLUB
TERRACE
MOUNT
PIPER BALMORAL
LALOKI-
RIGO
CORPORATE/
OTHER
CON-
SOLIDATED
Revenue and
other income
Revenue
Other Income
Total revenue
and other income
$
-
-
-
$
-
-
-
$
-
-
-
$
-
-
-
EBITDA
(10,665,905)
(671,400)
(18,008)
(51,310)
Depreciation and
amortisation
Interest revenue
Finance costs
Total loss before
income tax expense
-
-
-
-
-
-
-
-
-
-
-
-
(10,665,905)
(671,400)
(18,008)
(51,310)
Income tax expense
-
-
-
-
Total loss after
income tax expense
Fair value movement
on financial asset
Total
comprehensive loss
(10,665,905)
(671,400)
(18,008)
(51,310)
-
-
-
-
(10,665,905)
(671,400)
(18,008)
(51,310)
ASSETS AND LIABILITIES AS AT 30 JUNE 2022
$
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
$
-
$
-
791,996
791,996
791,996
791,996
(13,684)
(2,650,378)
(14,070,685)
-
-
-
(147,530)
(147,530)
13,950
(6,617)
13,950
(6,617)
(13,684)
(2,790,575)
(14,210,882)
-
-
-
(13,684)
(2,790,575)
(14,210,882)
-
-
-
(13,684)
(2,790,575)
(14,210,882)
ELIZABETH
CREEK
CAMERON
RIVER
CLUB
TERRACE
MOUNT
PIPER BALMORAL
LALOKI-
RIGO
CORPORATE/
OTHER
CON-
SOLIDATED
$
$
$
$
$
$
$
$
Assets
Total segment assets
18,927,027
306,900
10,654 569,920
Liabilities
Total segment
liabilities
Included in
segment assets are
Additions to
non-current assets
(835,255)
(4,000)
-
(30,032)
15,643,666
36,900
- 559,250
-
-
-
20,881
7,764,607
27,599,989
(11,275)
(841,970)
(1,722,532)
-
159,065
16,398,881
5 9
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 grant(i)
Research and development tax incentive(ii)
Note:
30 JUNE 2023
30 JUNE 2022
$
$
164,180
13,950
69,907
37,257
-
791,996
(i) The Company benefited from the Government of South Australia’s Accelerated Discovery Initiative designed to co-fund greenfield exploration
activities to facilitate new major minerals discoveries, driving further mine developments and stimulating growth, investment, exports, jobs and
innovation in the South Australian mineral resources sector.
(ii) The company received a research and development tax offset refund from the Australian Tax Office (“ATO”) during the 30 June 2023 financial year
under the ATO’s research and development tax incentive scheme.
60
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
Corporate and consultant costs
Director fees, employee salary and on costs expenses1
Share based payment expense
Other administration costs
Total administration expenses
(b) Exploration and evaluation expenses
Exploration and evaluation expenses
(c) Corporate finance expenses
30 JUNE 2023
30 JUNE 2022
NOTE
$
$
(967,287)
(2,036,366)
(800,130)
(507,004)
(4,310,787)
(659,948)
(1,752,880)
(162,948)
(678,238)
(3,254,014)
(3,370,309)
(11,420,307)
External advisors, consultants, brokers and legal expenses
(188,138)
(188,360)
(d) Other expenses
Depreciation expense on right-of-use assets
Other amortisation and depreciation
11
11,12
(90,539)
(71,921)
(94,121)
(53,409)
(e) Finance expenses
Interest expense on lease liabilities
(2,315)
(6,617)
Total Expenses
(8,034,009)
(15,016,828)
1.
Includes superannuation expense of $154,377 (30 June 2022: $117,056).
61
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
6. INCOME TAX
Accounting policy
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.
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)
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)
30 JUNE 2023
30 JUNE 2022
$
-
-
-
-
$
-
-
-
-
(7,762,655)
(2,328,800)
(14,210,882)
(4,263,265)
629,302
1,699,498
-
(186,318)
4,449,583
-
62
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Tax assets and liabilities
Deferred tax assets and liabilities are attributable to:
Deferred tax assets / (liabilities)
Exploration asset
Intangible asset
Provisions
Accrued expenditure
Net right of use asset
Blackhole costs
Tax losses
Property, plant & equipment
Prepaid expenditure
30 JUNE 2022
MOVEMENT
30 JUNE 2023
$
$
$
397,398
(416,033)
15,491
35,541
1,836
2,815
677,314
6,904,627
(34,307)
-
4,000
15,936
(1,836)
(2,797)
(294,158)
2,466,441
17,362
(64,255)
(18,635)
19,491
51,477
-
18
383,156
9,371,068
(16,945)
(64,255)
Deferred tax asset not recognised
(8,000,715)
(1,724,660)
(9,725,375)
Net deferred tax assets / (liabilities)
-
-
-
Unrecognised deferred tax assets
As at 30 June 2023 gross tax losses totalling $31,236,894 (2022: $23,015,422) 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.
7. CASH AND CASH EQUIVALENTS
Cash at bank
Cash and cash equivalents
8. RECEIVABLES AND OTHER ASSETS
Current Receivables
GST receivable from the ATO
R&D tax incentive receivable from ATO
Other receivables
Current receivables
Non-current Receivables
Exploration license bonds
Non-current receivables
30 JUNE 2023
30 JUNE 2022
$
4,717,592
4,717,592
$
8,178,668
8,178,668
30 JUNE 2023
30 JUNE 2022
$
28,210
37,257
12,105
77,572
150,328
150,328
$
168,849
-
2,166
171,015
95,000
95,000
6 3
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8. RECEIVABLES AND OTHER ASSETS (continued)
Allowance for expected credit closes
The group has recognised nil in the profit or loss as well as in the above balnaces in respect of expected credit losses for the year
ended 30 June 2023.
9. ASSETS CLASSIFIED AS HELD FOR SALE
Accounting policy
Assets classified as held for sale are measured at the lower f carrying amount and fair value 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.
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 assets1
Disposal of Mt Piper1
Carrying amount at end of year
30 JUNE 2023
30 JUNE 2022
$
-
-
559,250
-
(559,250)
-
$
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 5 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) valued at $259,250 and a 1.0% net smelter royalty
payable on any minerals extracted from the tenements. Completion subsequently occurred on the 30th of September 2022.
10. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
30 JUNE 2023
30 JUNE 2022
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income
Movement of financial assets through other comprehensive income
Carrying amount at beginning of year
Proceeds from disposal of Mt Piper1
Change in fair value of investment
Carrying amount at end of year
$
175,375
175,375
-
259,250
(83,875)
175,375
$
-
-
-
-
-
-
1. 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) valued at $259,250 and a 1.0% net smelter royalty
payable on any minerals extracted from the tenements. Completion subsequently occurred on the 30th of September 2022. Coda’s investment in
Kalamazoo is recognised as a financial asset at fair value through other comprehensive income.
64
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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. 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 2022
Additions
Write-off
At 30 June 2023
Accumulated depreciation
At 1 July 2022
Depreciation
At 30 June 2023
Net book value
At 1 July 2022
At 30 June 2023
$
353,229
9,128
-
362,357
(264,211)
(90,539)
(354,750)
89,018
7,607
$
296,136
18,312
(17,597)
296,851
TOTAL
$
649,365
27,440
(17,597)
659,208
(80,057)
(58,589)
(344,268)
(149,128)
(138,646)
(493,396)
216,079
158,205
305,097
165,812
6 5
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11. PROPERTY, PLANT & EQUIPMENT (continued)
RIGHT OF USE ASSET
(LEASED OFFICES)
EQUIPMENT, FIXTURES
AND FITTINGS
Cost
At 1 July 2021
Additions
Additions on acquisition of Torrens
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
$
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)
TOTAL
$
490,300
97,493
61,572
649,365
(210,070)
(134,198)
(344,268)
97,091
216,079
280,230
305,097
The Company leases its corporate office at 6 Altona Street West Perth as well as an operational office in Adelaide, South
Australia. These leases are recognised in accordance with the new AASB 16: Leases which the Company adopted on 1 July
2019. Refer to note 17 for further details.
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 2023
30 JUNE 2022
$
$
131,220
(13,333)
117,887
144,552
(13,332)
131,220
The Company was novated licence agreements for the use of mineral processing technology that was executed 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.
66
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
30 JUNE 2023
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
Reclassified to assets held for sale
Carrying amount at end of year
$
17,619,275
306,900
17,926,175
17,926,175
-
-
-
17,926,175
$
17,619,275
306,900
17,926,175
1,686,359
36,900
16,762,166
(559,250)
17,926,175
6 7
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13. EXPLORATION AND EVALUATION ASSETS (continued)
Notes:
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. On 3 November 2022,
Coda exceeded this Stage 1 expenditure threshold of $1 million in exploration expenditure, and notified its joint venture partner, Wilgus Investments
Pty Ltd. Consequently, Coda has the right to a 51% interest in the Cameron River Project tenements.
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, $16,762,166 for the acquisition of rights to explore was capitalised and
recognised as an exploration and evaluation asset.
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.
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 2023 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.
68
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
15. TRADE AND OTHER PAYABLES (continued)
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
16. EMPLOYEE BENEFITS
Current
Employee benefits
Total employee benefits
30 JUNE 2023
30 JUNE 2022
$
189,989
391,598
581,587
$
832,209
594,564
1,426,773
30 JUNE 2023
30 JUNE 2022
$
$
269,658
269,658
197,359
197,359
Amounts not expected to be settled within the next 12 months
The current provision for employee benefits includes all unconditional entitlements where employees have completed the
required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The
entire amount is presented as current, since the consolidated entity does not have an unconditional right to defer settlement.
However, based on past experience, the consolidated entity does not expect all employees to take the full amount of accrued
leave or require payment within the next 12 months.
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.
6 9
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
17. LEASE LIABILITY (continued)
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.
(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
30 JUNE 2023
30 JUNE 2022
$
$
7,668
-
7,668
7,668
-
7,668
90,539
2,315
98,400
-
98,400
98,400
-
98,400
94,121
6,617
7 0
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
30 JUNE 2023
30 JUNE 2022
30 JUNE 2022
NO. OF SHARES
$
NO. OF SHARES
$
Balance at beginning of period
124,531,177
40,229,393
97,767,184
23,473,301
Movements during the period:
Issued on acquisition of Torrens (i)
Issued on exercise of performance rights (ii)
Issued under a placement(iii)
Placement costs
-
50,928
17,215,647
-
-
26,763,993
16,756,092
43,063
4,131,756
(266,790)
-
-
-
-
-
-
Balance at end of period
141,797,752
44,137,422
124,531,177
40,229,393
Notes:
(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.
(ii)
$43,063 transferred from share based payments reserve upon exercise of vested performance rights.
(iii)
13,945,838 shares issued on 3 November 2022, 1,928,142 shares issued on 7 November 2022 and 1,341,667 shares issued on 7 February 2023
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.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to
the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not
have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall
have one vote and upon a poll each share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity’s objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the
cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as
total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value
adding relative to the current company’s share price at the time of the investment. The consolidated entity is not actively pursuing
additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise
synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2022 Annual Report.
7 1
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
30 JUNE 2022
$
$
12,040,106
12,040,106
-
-
12,040,106
12,040,106
The fair value of options and performance rights, 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 fair value of employee options and performance rights 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 lead advisor,
Directors & employees expensed during the year
Transferred to issued capital on excercise
Share based payments consideration– Torrens Acquisition
Share based payments reserve at end of period
30 JUNE 2023
30 JUNE 2022
$
611,859
800,130
(43,063)
-
1,368,926
$
263,444
162,948
-
185,467
611,859
72
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
19. RESERVES (continued)
Options
During the year, the Company granted 3,747,002 options to its lead advisor for the share placement completed. The options carry
an exercise price of $0.36 per option and have no vesting conditions. The options may be exercised on or before 7 November 2025.
The options were valued using a Black-Scholes Option Pricing Model. The following table provides a summary of terms under
which the options 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
$0.25
$0.36
7 November 2022
7 November 2025
3.00
100%
3.365%
3,747,002
$0.14
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 period:
GRANT
DATE
EXPIRY
DATE
BALANCE
AT START
OF PERIOD
GRANTED
DURING
THE PERIOD
EXERCISED
DURING
THE PERIOD
FORFEITED
DURING
THE PERIOD
BALANCE
AT END OF
THE PERIOD
3-Jul-20
3-Jul-24
2,000,000
3-Jul-20
3-Jul-24
2,000,000
3-Jul-20
3-Jul-24
2,000,000
8-Apr-22
22-Dec-23
991,804
-
-
-
-
7-Nov-22
7-Nov-25
-
3,747,002
-
-
-
-
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
991,804
3,747,002
VESTED AND
EXERCISABLE
AT END OF
THE PERIOD
2,000,000
2,000,000
2,000,000
991,804
3,747,002
Performance rights
During the year, the Company granted 971,344 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
471,602
9 November 2027
Nil
255,523
11 July 2027
244,219
12 July 2027
Nil
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 2025
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 2025
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 2025
73
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
19. RESERVES (continued)
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
$0.26
Nil
9 November 2022
9 November 2027
5.00
100%
$0.29
Nil
11 July 2022
11 July 2027
5.00
100%
$0.29
Nil
12 July 2022
12 July 2027
5.00
100%
Risk-free interest rate
3.295-3.395%
2.680-3.005%
2.580-2.915%
Number of performance rights
Valuation per performance right
471,602
$0.26
255,523
$0.29
244,219
$0.29
All performance rights have the vesting condition of continuous employment (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. The following table illustrates the number and movements in performance rights during period:
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
9-Nov-22
9-Nov-27
11-Jul-22
11-Jul-27
12-Jul-22
12-Jul-27
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
-
-
-
-
-
-
-
-
471,602
255,523
244,219
-
-
(34,415)
(1,122)
(15,391)
-
-
-
-
-
-
-
-
-
-
(46,316)
250,000
250,000
68,831
2,244
30,783
471,602
255,523
197,903
250,000
-
34,415
1,122
15,391
157,200
85,174
65,967
Shares issued on exercise of options and performance rights
During the year, the Company has issued 50,928 ordinary shares as a result of the exercise of performance rights.
(c) Revaluation reserve
The revaluation reserve is used to record the change in fair value of the investment in Kalamazoo Resources Limited as the
investment is designated as a financial asset at fair value through other comprehensive income.
Reserve at beginning of year
Change in fair value of investment
Reserve at end of year
30 JUNE 2023
30 JUNE 2022
$
-
(83,875)
(83,875)
$
-
-
-
74
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20. 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
Direct subsidiary
Torrens Mining Ltd
Indirect subsidiary
Terrace Mining Pty Ltd
Torrens Gold Exploration Pty Ltd
Torrens Mining (Holdings) Pty Ltd
PLACE OF
INCORPORATION
BENEFICIAL INTEREST
2023
BENEFICIAL INTEREST
2022
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Torrens Mining (PNG) Ltd
Papua New Guinea
21. PARENT ENTITY DISCLOSURES
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
Revaluation reserve
Accumulated losses
TOTAL EQUITY
Company Statement of Financial Performance
Loss for the year
Total comprehensive loss for the year
30 JUNE 2023
30 JUNE 2022
$
$
4,847,704
18,500,479
23,348,183
718,392
-
718,392
44,137,422
12,040,106
1,368,926
(83,875)
(34,832,788)
22,629,791
8,061,406
17,975,880
26,037,880
1,304,808
-
1,304,808
40,229,393
12,040,106
611,859
-
(28,148,880)
24,732,478
(6,683,908)
(6,767,783)
(13,863,177)
(13,863,177)
75
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
22. 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:
One year or less
Between one and two years
Between two and three years
Between three and four years
Between four and five years
Over five years
Total commitments
23. EARNINGS PER SHARE
30 JUNE 2023
30 JUNE 2022
$
40,281
22,081
22,081
12,997
12,997
-
110,437
$
37,093
40,281
22,081
22,081
12,997
-
134,533
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 2023 was based on the loss attributable to ordinary shareholders of
$7,762,665 and a weighted average number of ordinary shares outstanding during the year ended 30 June 2023 of 132,251,612
calculated as follows:
30 JUNE 2023
30 JUNE 2022
$
$
Basic earnings per share
Loss attributable to ordinary shareholders
(7,762,665)
(14,210,882)
Weighted average number of ordinary shares
NO. OF SHARES
NO. OF SHARES
Shares on issue at the beginning of the year / on incorporation
Weighted average number of ordinary shares at the end of the year
124,531,177
135,442,377
75,076,122
103,459,717
Earnings / (loss) per share:
Basic and diluted
(0.06)
(0.14)
Potential ordinary shares relating to options and performance rights are not dilutive at 30 June 23.
76
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
24. FAIR VALUE MEASUREMENT
Accounting policy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described
as follows, and based on the lowest level input that is significant to the fair value measurement as a whole.
Level 1: Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.
Level 2:
Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable).
Level 3: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).
As at 30 June 2023
Financial assets at fair value through other
comprehensive income
As at 30 June 2022
Financial assets at fair value through other
comprehensive income
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
$
175,375
-
$
-
-
$
-
-
$
175,375
-
There were no transfers between levels during the financial year. The carrying amounts of trade and other receivables and trade
and other payables are assumed to approximate their fair values due to their short-term nature.
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.
77
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25. FINANCIAL INSTRUMENTS & FINANCIAL RISK MANAGEMENT (continued)
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.
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.
7 8
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
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 2023
30 JUNE 2022
NOTE
7
8
$
4,717,592
12,105
$
8,178,668
2,166
The Company’s cash and cash equivalents of $4,717,592 at 30 June 2023 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 2023
30 JUNE 2022
CARRYING
AMOUNT
6 MONTHS
OR LESS
CARRYING
AMOUNT
6 MONTHS
OR LESS
$
$
$
$
Non-derivative financial liabilities
Trade and other payables
581,5870
581,587
1,426,773
1,426,773
79
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25. FINANCIAL INSTRUMENTS & FINANCIAL RISK MANAGEMENT (continued)
(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.
Financial assets at fair value through other
comprehensive income
(d) Interest rate risk
Exposure to interest rate risk
30 JUNE 2023
30 JUNE 2022
NOTE
10
$
175,375
$
-
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 2023
30 JUNE 2022
$
$
4,717,592
8,178,668
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, amortisation and write-offs
Share based payments
Net finance costs
30 JUNE 2023
30 JUNE 2022
$
$
(7,762,665)
(14,210,882)
180,057
799,755
2,315
147,530
162,948
6,617
Operating loss before changes in working capital and provisions
(6,780,538)
(13,893,787)
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
93,443
-
(55,328)
9,379
(845,186)
72,299
17,957
(36,900)
(40,000)
(71,995)
(404,177)
96,289
(7,505,931)
(14,332,613)
8 0
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
Superannuation
Non-monetary benefits
30 JUNE 2023
30 JUNE 2022
$
817,934
217,808
140,535
18,779
72,821
7,200
$
765,882
136,368
98,227
25,631
63,864
6,391
Total employee benefits expense
1,275,077
1,096,363
Detailed remuneration disclosures are provided in the remuneration report on page 27.
Transactions with other related parties
There have been no other related party transactions during the reporting period.
28. 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. 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.
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.
The Group has given a bank guarantee as at 30 June 2023 of $54,397 (2022: $50,397) to the landlord of its registered and
corporate office.
81
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
29. AUDITOR’S REMUNERATION
Auditors of the Company – RSM Australia Partners
RSM Australia Partners and 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
Deloitte Touche Tohmatsu 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
30 JUNE 2023
30 JUNE 2022
$
39,000
-
13,000
-
-
-
$
-
-
-
74,300
-
77,242
Auditor’s Remuneration
52,000
151,542
RSM Australia partners was appointed the Group’s auditor on the 1st of November 2022, replacing Deloitte Touche Tomatsu.
30. EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year apart from the following:
•
•
•
On the 5th of July 2023, 994,437 performance rights were issued to employees under the Employee Incentive Plan;
On the 5th of July 2023, 46,316 performance rights were cancelled that were under the Employee Incentive Plan; and
On the 5th of July 2023, 359,269 Coda shares were issued to employees upon the exercise of vested performance rights that
were under the Employee Incentive Plan.
31. 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.
8 2
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
STATEMENT REGARDING METAL EQUIVALENT CALCULATIONS
Metal Equivalent grades are quoted for one or more of the Emmie Bluff, Windabout and MG14 Mineral Resources, or for exploration
results considered by the company to be related directly to one of these Mineral Resources, in this announcement.
For the Emmie Bluff Mineral Resource:
The Emmie Bluff Mineral Resource is reported as 43Mt @ 1.3% Cu, 470 ppm Co, 11 g/t Ag and 0.15% Zn (1.84% Copper Equivalent
(CuEq)) reported at a cut-off grade of 1% CuEq. The calculation of this metal equivalent is based on the following assumptions.
METAL
Copper
Cobalt
Zinc
Silver
COEFFICIENT
FORECAST PRICE
PRICE UNIT
0.8
0.85
0.9
0.85
$7,000
$55,000
$2,100
$18.50
USD/Tonne
USD/Tonne
USD/Tonne
USD/Oz
Price assumptions used when calculating copper equivalent grades were based primarily on Consensus Economics forecasts of
metals, except for Cobalt, which was sourced via communication with subject matter experts. Metallurgical assumptions used
when calculating copper equivalent grades were based on a simple bulk float utilising rougher and minimal cleaner/scavenger
circuits. The produced a reasonably consistent mean recovery across most metals of between approximately 83 and 94 percent.
For simplicity, and to in part account for losses associated with less intensive cleaner floats and losses to the hydromet plant,
these figures were rounded down to the nearest 5%.
Application of these assumptions
resulted in the following calculation of CuEq:
CuEq% = Cu% + 0.00068 × Co ppm + 0.337×Zn % + 90.3 ×
(Ag ppm)
10000
For the Windabout and MG14 Mineral Resource:
The Windabout and MG14 Mineral Resource are reported at a cut-off grade of 0.5% CuEq as:
• Windabout: 17.67Mt @ 0.77% Cu, 492 ppm Co and 8 g/t Ag (1.41% CuEq)
• MG14: 1.83Mt @ 1.24% Cu, 334 ppm Co and 14 g/t Ag (1.84% CuEq)
The calculation of this metal equivalent is based on the following assumptions.
METAL
MINING RECOVERY % DILUTION % RECOVERY % PAYABILITY % FORECAST PRICE
PRICE UNIT
Copper
Cobalt
0.9
0.9
0.05
0.05
0.6
0.85
0.7
0.75
$6,600
$55,000
USD/Tonne
USD/Tonne
Price assumptions used when calculating copper equivalent grades were based on recent historical metal prices at the time of
calculation (2018). Metallurgical assumptions are based on extensive metallurgical testwork undertaken on the two deposits to
2018 across various potential flowsheets involving both floatation and leaching. Ag analyses in the estimation and metallurgical
testwork were considered insufficient at the time to include in the metal equivalent calculation.
Application of these assumptions
resulted in the following calculation of CuEq:
CuEq% = Cu% + 0.0012 × Co ppm
It is the opinion of the company that both sets of prices used in the calculations are reasonable to conservative long-term
forecasts for real dollar metal prices during the years most relevant to the deposits (approx. 2026-2030).
It is the opinion of the company that all of the elements included in the metal equivalent calculations have a reasonable potential
to be recovered and sold.
For full details of the Emmie Bluff Metal Equivalent calculation, please see “Standout 43Mt Maiden Cu-Co Resource at Emmie Bluff”, released to the
ASX on 20th December 2021 and available at https://www.codaminerals.com/wp-content/uploads/2021/12/20211220_Coda_ASX-ANN_Standout-43Mt-
Maiden-Cu-Co-Resource-at-Emmie-Bluff_RELEASE.pdf.
For full details of the MG14/Windabout Metal Equivalent Calculation, please see “Confirmation of Exploration Target & Mineral Resource and Ore Reserve
Statement”, released to the ASX on 23rd October 2020 and available at https://www.codaminerals.com/wp-content/uploads/2020/10/20201026_Coda_
ASX-ANN_Confirmation-Statements-JORC.pdf.
83
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ASX ADDITIONAL INFORMATION
The following additional information is required by the Australian Securities Exchange. The information is current as at
26th September 2023.
STATEMENT ON USE OF FUNDS
Pursuant to Listing Rule 4.10.19, over the reporting period between 1 July 2022 and 30 June 2023 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 26th September 2023, there were 4,797 shareholders holding a total of 142,157,021 fully paid ordinary shares.
UNQUOTED SECURITIES
UNQUOTED SECURITY
Options
Performance rights
DISTRIBUTION SCHEDULE OF SHAREHOLDERS
NUMBER ON ISSUE
10,738,806
2,162,054
Ordinary Shares
HOLDING RANGES
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
Options
HOLDERS
TOTAL UNITS
% OF ISSUED
SHARE CAPITAL
1,530
1,542
574
978
173
4,797
726,217
3,789,333
4,520,995
33,389,447
99,731,029
142,157,021
0.51%
2.67%
3.18%
23.49%
70.16%
100.00%
% OF ISSUED
SHARE CAPITAL
0.00%
0.00%
0.00%
1.13%
98.87%
100.00%
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
0
0
0
4
111
15
0
0
0
121,520
10,617,286
10,738,806
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.
8 4
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ASX ADDITIONAL INFORMATION
PERFORMANCE RIGHTS
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
0
0
0
1
6
7
0
0
0
42,336
2,119,718
2,162,054
% OF ISSUED
SHARE CAPITAL
0.00%
0.00%
0.00%
1.96%
98.04%
100.00%
UNMARKETABLE PARCELS
As of 26th September 2023, there were 2,546 shareholders with an unmarketable parcel of shares being a holding of less than
2,778 shares at a $0.18. Unmarketable parcels totalled 2,484,435 shares, representing a 1.75% of issued capital.
85
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 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
LUJETA PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SUNSET CAPITAL MANAGEMENT PTY LTD
MS LINLIN LI
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
MR PAUL LESLIE DUNCAN & MRS DARANEE DUNCAN
& MR PAUL KENNEDY DUNCAN
THECIA PTY LTD
SHEDDEN ASSOCIATES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
B & M LAWS SUPER FUND PTY LTD
MR PAUL DUNCAN HALLAM & MRS CHRISTINE JOY HALLAM
NO BULL HEALTH PTY LTD
CROFTBANK PTY LTD
GOLDNEY PTY LTD
PATHWAYS CORP INVESTMENTS PTY LTD
BUTTONWOOD NOMINEES PTY LTD
JARHAMCHE PTY LTD
20
MR PAUL KENNEDY DUNCAN
Total
SUBSTANTIAL SHAREHOLDERS
NUMBER
OF ORDINARY
SHARES HELD
11,899,834
7,110,801
6,658,649
4,538,456
4,000,000
3,528,695
3,200,000
2,265,990
1,748,000
1,702,000
1,638,797
1,500,000
1,298,888
1,224,511
1,070,000
1,066,667
1,000,000
992,028
957,250
908,888
%IC
8.37%
5.00%
4.68%
3.19%
2.81%
2.48%
2.25%
1.59%
1.23%
1.20%
1.15%
1.06%
0.91%
0.86%
0.75%
0.75%
0.70%
0.70%
0.67%
0.64%
59,092,788
41.57%
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
ORDINARY
SHARES HELD
% ORDINARY
SHARES HELD
DATE OF
NOTICE
MR KEITH FRANCIS JONES & MRS JENNIFER JONES
7,844,135
5.52%
21-Feb-23
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ASX ADDITIONAL INFORMATION
VOTING RIGHTS
All fully paid ordinary shares carry one vote per share without restriction. Unquoted options and performance rights have
no voting rights.
MINING TENURE SUMMARY
As at 26th September 2023, Coda owns exploration tenements across South Australia, Queensland, New South Wales, Victoria
and Papau New Guinea.
SOUTH AUSTRALIA
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. Coda was recently granted the Booleroo tenement,
EL 6917, after the end of the 2023 financial year.
ELIZABETH CREEK
TENEMENT
REGISTERED HOLDER / APPLICANT % HELD
GRANT DATE
EXPIRY DATE
AREA
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)
EL 6518
(formerly EL 5636)
EL 6141
(formerly EL 5108)
EL 6265
(formerly EL 5333)
BOOLEROO
70%
30%
70%
30%
70%
30%
25 March 2020
24 March 2025
363 km2
29 October 2017
28 October 20222
47 km2
7 October 2018
6 October 20233
291 km2
TENEMENT
REGISTERED HOLDER / APPLICANT % HELD
GRANT DATE
EXPIRY DATE
AREA
EL 6917
Coda Minerals Ltd
(ACN 625 763 957)
QUEENSLAND
100%
25 July 2023
24 July 2029
202 km2
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 Farm-in 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 the FIJVA with Wilgus Investments
Pty Ltd (“Wilgus”) giving it the right to acquire 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. The company has reached the
threshold for 51% ownership under the Agreement.
2. Currently under renewal application
3. Currently under renewal application
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ASX ADDITIONAL INFORMATION
CAMERON RIVER
TENEMENT
REGISTERED HOLDER / APPLICANT
% HELD
GRANT DATE
EXPIRY DATE
AREA
Coda Minerals Ltd
(ACN 625 763 957)
Coda Minerals Ltd
(ACN 625 763 957)
EPM 27042
EPM 27053
VICTORIA
51%
10 October 2019
9 October 2024
22.4 km2
51%
14 February 2020
13 February 2025
12.8 km2
Coda also owns a 100% interest in four exploration tenements in Victoria, one exploration tenement in New South Wales, and one
tenement in Papua New Guinea through its various subsidiaries listed below.
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
8
100%
29 August 2022
28 August 2027
100%
29 August 2022
28 August 2027
100%
29 August 2022
28 August 2027
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%
3 August 2021
3 August 2027
260 km2
PAPUA NEW GUINEA
TENEMENT
EL 2690
REGISTERED HOLDER /
APPLICANT
Torrens Mining (Holdings) Pty Ltd
(ACN 622 768 683)
% HELD
GRANT DATE
EXPIRY DATE
GRATICULAR
SECTION
100%
26 Jan 2022
26 Jan 2024
341
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 2022, 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.
Information regarding the Emmie Bluff Mineral Resource is extracted from the report entitled “Standout 43Mt Maiden Cu-Co
Resource at Emmie Bluff” created on 20th December 2021 and is available to view at https://www.codaminerals.com/wp-
content/uploads/2021/12/20211220_Coda_ASX-ANN_Standout-43Mt-Maiden-Cu-Co-Resource-at-Emmie-Bluff_RELEASE.pdf
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 ASX ADDITIONAL INFORMATION
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-off4
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 (Moz)
Grade
(% Zn)
Contained
Metal (T)
Indicated
38,800,000
1.9% 735,000
1.3% 515,000
Inferred
4,500,000
1.4%
62,000
1.1.%
47,000
Total
43,300,000
1.84% 797,000 1.30% 562,000
500
230
470
19,000
1,000
20,000
11
9
11
15
1
0.15%
58,000
0.17%
8,000
15.5
0.15%
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.
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 experience 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.
4. Notes 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 hosted 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 below.
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 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.
Information regarding the MG14 and Windabout Mineral Resources is extracted from the report entitled “Confirmation
Statements JORC” created on 26th October 2020 and is available to view at https://www.codaminerals.com/wp-content/
uploads/2020/10/20201026_Coda_ASX-ANN_Confirmation-Statements-JORC.pdf
Windabout Indicated Resource
CU_EQ > 0.5% CUTOFF
CU_EQ > 1.0% CUTOFF
MT
17.67
CU %
CO PPM
AG G/T
CU_EQ %
0.77
492
8
1.41
MG14 Indicated Resource
CU_EQ > 0.5% CUTOFF
MT
1.83
CU %
CO PPM
AG G/T
CU_EQ %
1.24
334
14
1.67
MT
11.86
MT
1.59
CU %
CO PPM
AG G/T
CU_EQ %
0.95
599
10
1.73
CU_EQ > 1.0% CUTOFF
CU %
CO PPM
AG G/T
CU_EQ %
1.33
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.
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 ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 91
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CORPORATE DIRECTORY
DIRECTORS:
Keith Francis Jones – Non-Executive Chair
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
Automic Group
Level 5, 126 Phillip Street
Sydney, New South Wales 2000
GPO Box 5193
Sydney, New South Wales 2001
Telephone: 1300 288 664 (within Australia)
+61 2 9698 5414 (outside Australia)
Email: hello@automicgroup.com.au
AUDITORS
RSM Australia Partners
Level 32 Exchange Tower 2,
The Esplanade, Perth WA 6000
STOCK EXCHANGE LISTING
Coda Minerals Limited shares are listed
on the Australian Securities Exchange
ASX code: COD
WEBSITE
www.codaminerals.com
CORPORATE GOVERNANCE STATEMENT
www.codaminerals.com/about/#corporate_governance
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 93
CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CODAMINERALS.COM
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CODA MINERALS LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ANNUAL REPORT AND FINANCIAL STATEMENTS 2023