ANNUAL
REPORT
Cokal Limited ACN 082 541 437
2024
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“Producing world class metallurgical Coal
sustainably and respectfully whilst caring for our
environment, people, communities and shareholders”
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ANNUAL REPORT 2024
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Contents
Corporate Information
3
Chairman’s Letter to Shareholders
4
Review of Operations
5
Annual Mineral Resources Statement
26
Directors’ report
28
Auditor’s Independence Declaration to the Directors of Cokal Limited
40
Consolidated Statement of Comprehensive Income for the year ended 30 June 2024
41
Consolidated Statement of Financial Position as at 30 June 2024
42
Consolidated Statement of Changes in Equity for the year ended 30 June 2024
43
Consolidated Statement of Cash Flows for the year ended 30 June 2024
44
Notes to the Consolidated Financial Statements for the year ended 30 June 2024
45
Consolidated Entity Disclosure Statement 78
Declaration by Directors
79
Independent Auditor’s Report
80
Shareholder Information
85
Interests in Tenements and Projects
87
Corporate Information
DIRECTORS
Domenic Martino
Karan Bangur
David (Allen) Delbridge
COMPANY SECRETARIES
Louisa Martino
Miranda Yuan
REGISTERED OFFICE AND PRINCIPAL
BUSINESS OFFICE
Level 5
56 Pitt Street
Sydney NSW 2000
Phone: + 61 2 8823 3177
COUNTRY OF INCORPORATION
Australia
SOLICITORS
Mills Oakley
Level 7,
151 Clarence Street
Sydney NSW 2000
Phone: + 61 2 8289 5800
SHARE REGISTRY
Automic Group
Level 5, 126 Philip Street
Sydney NSW 2000
Phone: +61 2 8072 1400
AUDITORS
Hall Chadwick
Level 40, 2 Park Street
Sydney NSW 2000
STOCK EXCHANGE LISTING
Australian Securities Exchange Ltd
ASX Code: CKA
INTERNET ADDRESS
www.cokal.com.au
AUSTRALIAN BUSINESS NUMBER
ABN 55 082 541 437
Compliance Statement
This Annual Report contains information relating to a mineral resource and reserve extracted from ASX market announcements
dated 29 January 2015, 29 April 2016, 1 August 2017, 29 December 2020, 28 September 2021, 2 September 2022 reported in
accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves” (2012 JORC Code) and available for viewing at www.cokal.com. CKA confirms that it is not aware of any new
information or data that materially affects the information included in any original ASX market announcement and, in the case
of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimate in the
relevant market announcement continue to apply and have not materially changed.
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Word From Our Chairman
Dear Shareholders:
Your Company has achieved a number of milestones in
the past year but still has some challenges and many
opportunities before it. The transformation from a
metallurgical coal explorer to a producer, while initially
on a small scale, has given the Company credibility in
the market based on its high quality coking coal and PCI
products. In addition it has provided the first proof of
the Company’s logistics infrastructure to deliver coal to
market.
We have spent the past year incrementally developing
the logistics chain from our Bumi Barito Mineral (BBM)
mine in central Kalimantan to market via the Taboneo
Anchorage. Of significance is the development of a fully
automated jetty system at Batu Tuhup. More
importantly BBM realised its first commercial coal sales
in this year.
We have made strong developments in infrastructure
funding and production expansion funding. The
partners we now have in these areas are some of
Indonesia’s largest reputable companies in the mining
contracting and mining resources industry. This is a
testament to Cokal’s standing and the standing of
Cokal’s flagship metallurgical coal project in the
Indonesian mining Industry.
We have identified several areas of expansion of production and have put in place plans to proceed on these including the
developments in underground mining, which were not previously on our radar in the short term, and the proposed
development of the TBAR project adjacent to BBM. We have also identified other expansion targets which we fully expect to
initiate in the coming year.
Whilst it is fair to say that we expected to be more advanced in production than we are now, and that this is reflected in some
of our missed targets, we are confident that we have built a solid foundation for the growth of this Company and its transition
to a profitable, producing metallurgical coal company.
I would like to thank all of our team, both in the field and in Jakarta, whose tireless efforts, sometimes in the face of adversity,
have been instrumental in developing this strategic foundation on which the success of our Company is now being built.
It’s important as well we recognise the immense contribution of our major shareholder and BBM chairman Wai Foo Chin. He
has given freely of his time, expertise and contacts to assist the Company wherever needed and of course has been
instrumental in our funding initiatives. We also recognise the contribution of our CEO Karan Bangur. His energy and
leadership of the team both on the corporate and operational fronts, has provided the impetus for our success to date.
Finally we would like to thank our many shareholders for their long and continued support. We appreciate that it has taken a
long time to get your Company to this stage and that we still have some challenges to go. Your support has been one of the
most important criteria for the Company’s success and with that continued shareholder support our Board is confident that
the Company will in the short term see the fruits of success.
DOMENIC MARTINO
CHAIRMAN
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REVIEW OF
OPERATIONS
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Cokal Limited (ASX:CKA; Cokal or the Company) is an Australian listed company with the objective of becoming a
metallurgical coal producer with a global presence. Cokal has interests in four projects in Central Kalimantan, Indonesia,
each with known resources of metallurgical coal.
HIGHLIGHTS
Highlights for the year include:
•
BBM commences coal product deliveries to domestic and international market
•
Ramp-up in BBM Mine production with two new mining fleets, increasing the total to five fleets
•
Joint Venture with PT Petrindo Jaya Kreasi, focusing on haul road upgrades, additional haul road
development, and infrastructure in the upper Barito River
•
Obtaining access to PT Petrindo Jaya Kreasi (IDX:CUAN)(“PJK”) owned Mutu ISP at Buntok for storage
and delivery of coal product
•
PT BSN, Cokal’s wholly owned infrastructure and logistics company operating at maximum capacity,
acquired a fleet of 13 brand new trucks to facilitate coal hauling from Pit 3 to Batu Tuhup Jetty and
Krajan Jetty
•
Cokal has finalised coal hauling services agreement with PT.Stanley to support the scheduled ramp
up coal production transportation from ROM Pit to Batu Tuhup Jetty
•
Advancements in the development of Batu Tuhup Permanent Jetty include progress on the coal
conveyor belt, installation of weighbridges, civil works, workshop and expansion of the coal stockpile
•
PT LLB as mining contractor has appointed PT UPM as its subcontractor as part of their production
ramp up strategy
•
Continued road upgrade works from Pit3 to KM52 section
BBM’s successful production of metallurgical coal and mine-development demonstrates the continued execution of
Cokal’s strategy of achieving low-cost, high-margin coking coal production.
During the year, Cokal has successfully initiated coal sales from the BBM Mine. To enhance logistics and delivery
efficiency, BBM acquired two 230ft jumbo coal barges from PT MBS in April 2024. The barges have been actively used
for transporting coal to both domestic and international markets. Other key shipments include a total of 11,400 metric
tons of high grade thermal coal to SGE and a total of 15,100 metric tons of hard coking coal for domestic smelters
including PT Risun Wei Shan Indonesia and PT Kinrui New Energy Technologies Indonesia.
Initial concerns surrounding the coal quality are being addressed with plans to set up a Coal Wash Plant by Q1 2025 with
detailed discussion and evaluation with consultant and manufacturers underway.
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INDONESIAN COAL ASSETS
Cokal holds shares in the following Indonesian coal assets in Central Kalimantan, each with known resources of
metallurgical coal:
•
60% of the Bumi Barito Mineral (BBM) project located in Central Province, Kalimantan, Indonesia. The BBM
tenement area is 14,980ha;
•
75% of PT Tambang Benua Alam Raya (TBAR) which owns an exploration tenement covering an area of
approximately 18,850ha in Central Province, Kalimantan, Indonesia. This tenement is located adjacent to and
southeast of the BBM project;
•
60% of the Borneo Bara Prima (BBP) project located in Central Province, Kalimantan, Indonesia. The BBP
tenement area is approximately 13,050ha;
•
75% of the Anugerah Alam Katingan (AAK) project. This project is also located in Central Province, Kalimantan,
Indonesia and has an area of approximately 5,000ha.
BBM, TBAR, BBP and AAK are located adjacent to Indomet’s extensive coking coal tenements. The Company is currently
focussed on the development of the BBM Project and delineation of resources in TBAR.
Indonesian Coal Assets
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Bumi Barito Mineral (BBM) Project
BBM’s permit covers an area of 14,980ha with multiple seams of high-quality metallurgical coal. BBM has regulatory
approvals in place including:
•
Mining Licence for 20 years with two further extensions of 10 years each
•
Environmental approval for a mining rate of 6Mt per annum
•
Port construction approval
•
Forestry Permit to commence mining activity
•
RKAB application is already approved for 3 yrs (2024 – 400kt, 2025- 800kt, 2026- 1200kt)
The BBM Permit Area is bisected by the Barito River which cuts through the tenement in a north-south trend. Almost
the entire IUP contains coal-bearing sediments with open cut mineable areas controlled by the Barito River and three
major fault systems. Only the East side of the river within the BBM permit area (East Block) has been drilled so far and
contains 260.1Mt Resources and 23.05Mt Reserves (Revised June 20241). Coal analyses from more than 130 mapped
outcrops on the west side of the Barito River (West Block) indicate it also contains premium quality anthracite and PCI
coals. This coal does not currently form part of stated BBM coal Resources and provides potential for significant future
expansion of BBM Resources.
BBM commenced commercial production of metallurgical coal in November 2022 and is continuing with development
of road and port infrastructure for coal transport.
BBM Project Area
1 Refer ASX announcement “Annual Mineral Resource and Ore Reserve Statement” dated 2 September 2022 and “Annual Mineral
Resources and Ore Statement” on page 25
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BBM will be the first deposit developed by Cokal. In the East Block mine planning for Pits 1, 2, and 3 (previous Pit 4 has
joined up with Pit 3 to form larger Pit 3 area) has been completed as the basis for a five year mining contract. During
survey of mining areas in Pit 3 a disused logging road was identified. This runs 96km to Batu Tuhup to bypass 170km of
the most difficult parts of the Upper Barito River.
Pre Strip and Overburden removal activities commenced in the 3rd quarter 2022 followed by first coal production. The
Company has also conducted an Infill Drilling Exercise in Pit 3 in Q1 2023. This internal exercise was aimed at obtaining
additional information relating to coal thickness, availability and coal seam continuity in Pit 3 to plan the mining
sequence more efficiently. In addition, BBM plans to conduct more infill drilling early in 2025 to facilitate Pit 3 expansion.
Tambang Benua Alam Raya (TBAR) Tenement
TBAR’s exploration authority covers an area of 18,850ha immediately adjacent to and south of Cokal's BBM tenement.
Outcrop mapping of four seams over 17km strike length indicates a substantial resource of high grade coking coal in this
deposit. It is believed these seams correlate to the B, C, D and J seams in BBM.
Tender bids have been received and vendors are shortlisted while awaiting necessary approvals from government
departments to commence exploration works. This will outline the coal occurrence in the tenement and enable an
estimate to be made of the TBAR Resources and Reserves under the JORC code. Given its proximity to BBM It is expected
that all coal in the TBAR deposit is high grade coking coal similar to that in BBM.
The haul road from BBM to the jetty at Batu Tuhup passes through the TBAR tenement and provides a notional 75km
access road to the jetty when the mine is developed.
Preparation for a full-scale exploration drilling program at TBAR has commenced with the issuance of a tender for drilling
services. Bids have been received and shortlisted. The awarding of the contract is awaiting the required regulatory
approvals. Necessary compliance works for licenses and permits have been completed and submitted to relevant
Government authorities with outcomes expected in Q4 2024, post which on ground activity will commence.
Commencement of drilling requires regulatory approval including IPPKH, MODI, Enviro clearance etc. Cokal’s application
is currently being assessed by the relevant Government departments and exploration activities will commence as soon
as the necessary approvals are obtained. Cokal has experienced delays in obtaining the necessary approvals due to
moratorium period because of Presidential elections in 2024 and expects the process to be expedited once the new
government if formed in October 2024.
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Cokal is targeting a maiden JORC resources in Q3 2025 with a drill programme designed to increase understanding of the
stratigraphy and geology within the 500-hectare targeted area, including identifying coal seams, seam thickness, and
deployment of seams.
The stage 1 exploration campaign will comprise 32 drill holes over a total area of 500 hectares
▪ Drill spacing of 400m for strike and 100m to 250m for dip direction;
▪ Average drill hole depth of 100m, with some holes drilled to a depth of 150m to 200m;
▪ Total of approximately 5700m of planned drilling (40% Coring, 60% Open Holes); and
▪ Commencement of drilling requires regulatory approval including IPPKH, MODI, Enviro clearance etc. Cokal’s
application is currently being assessed by the relevant Government departments and exploration activities will
commence as soon as the necessary approvals are obtained.
Over 80% of the TBAR tenement area is available for exploration and mine development, with 20% protected forest. An
exploration plan has been prepared to delineate TBAR Resources and Reserves under the JORC code.
TBAR Project Area
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TBAR- Drill Plan Layout Map
Borneo Bara Prima (BBP) Tenement
Cokal's BBP project covers 13,050ha in Murung Raya Regency, Central Kalimantan. BBP has been granted an Exploration
Forestry Permit (IPPKH) and has been confirmed on the Central Government’s Clean and Clear list. The Production and
Operation IUP has been obtained, with validity to June 2033.
A business licence decree for operation foreign mining production (IUP OP PMA) from the Capital Investment
Coordination Board Centre (BKPM) was received in Q1 2019.
No exploration activity was conducted in BBP during the year.
BBP Project Area
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Anugerah Alam Katingan (AAK) Tenement
Cokal's AAK project covers 5,000ha in Central Kalimantan. Applications for the Exploration Forestry Permit (IPPKH) and
Clean and Clear Certificates continue to be processed. Cokal continues to monitor the progress of the regulatory upgrade
approvals for AAK.
No exploration activity was conducted in AAK during the year.
AAK Project Area
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BBM DEVELOPMENT
BBM Mine Updated Logistics Plan
BBM Mine Logistics
The Upper Barito River has an inconsistent water depth that may delay barging of coal in the dry season. To minimize this
operational risk it was decided to implement an alternative strategy to haul coal via a 96km initial road development
from BBM Pit 3 to BBM’s Permanent Jetty at Batu Tuhup where 2.5m water depth is available all year round. Usage of
this proposed logistic route allows BBM to bypass the most difficult 170km of the Upper Barito River.
The haul road is a former logging road with 52km of the 96km still in regular use and 44km currently being upgraded. The
main repair task is to replace bridges and culverts and cut & fill works to widen critical sections. It is also planned that a
semi-permanent bridge crossing the Mohing River, the largest river along the haul road, will be constructed. Cokal has
appointed a local construction company for this purpose. Cokal has established its right to use these roads with exclusive
use of the first 46km of the road. This has been adopted as the main logistics route to bring BBM and TBAR coal to market
via the Company’s permanent jetty at Batu Tuhup.
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The haul road’s initial development was completed in March 2023 and hauling operations commenced in April 2023
using trucks from in house logistics arm BSN. While the coal hauling operations are ongoing, we have encountered
several delays due to the current condition of the road as a result of heavy rains and high gradient in steep sections which
require further upgrading and development. Upgrading and development is currently being carried out as part of a
running repair and maintenance program (RRM) to make the road optimal for operating the incoming fleet of
trucks.
Road & Bridge Construction from Pit 3 to KM52
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BBM has implemented an updated logistics plan to enable the transport of coal from both Krajan Jetty (refer to Blue
Line on Logistics map) and Mohing Haul Road (refer to Red Line on Logistics Map) to ensure sustainability of supply to
its clients and to also maximize support for the ongoing operations.
Temporary Krajan Jetty Facilities
Overview of BBM Mining Operation
•
BBM commenced its mining operation in Q3 September 2022 with CBQ, its main overburden removal
contractor focusing on Pit 3 as a coking coal pit. However, CBQ failed to perform the agreed production
target due to low productivity of equipment which led to termination of their contract.
•
BBM then appointed PT Levine Latersia Baratama (“LLB”) in November 2023 as overburden removal and
coal mining contractor and started its production in December 2023 (“Refer to the ASX announcement 20
November 2023”). In order to ramp up production, LLB has formed a Joint Venture with PT Unitrindo
Perkasa Multimesin (“UPM”) beginning April 2024.
•
LLB-UPM are currently operating five fleets of mining equipment to boost overburden removal to
approximately 450,000 to 550,000 BCM per month, targeting coal production of around 25,000 tonnes per
month to be achieved by Q4 2024;
•
An additional medium size fleet of 100t class excavators are expected to be deployed by December 2024 to
boost overburden removal to approximately 1 million BCM per month and targeting coal production of
around 40 to 45k mt per month
•
There has been expansion of the in-pit ROM coal stockpile for increased production, enhancing quality
control and minimizing rehandling needs.
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Barge Logistics:
•
The logistics chain operated by Cokal’s subsidiary, BSN includes three barges and five tugboats which
ensures a reliable transportation system for coal;
•
BSN has acquired an additional assist tug boat with 450HP capacity for supporting barging operations from
Batu Tuhup Jetty to Taboneo anchorage;
•
Efficient land transportation is supported by 13 trucks for the transportation of coal to the Batu Tuhup
Jetty, streamlining the process from mine site to jetty. However, the overall carrying capacity is currently
being operated at 60% productivity due to current road conditions;
•
In addition to the above, PT Stanley will deploy an initial 20 Units of 8x4specs FAW trucks beginning
September 2024 to increase the transportation volume between ROM Pit and Batu Tuhup Jetty;
•
Extreme dry weather from June onwards has hampered the barging operations due to depleting water
levels in Upper Barito River which has affected the coal barging from Krajan Jetty to Batu Tuhup Jetty.
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Batu Tuhup Jerrty and ISP
In addition to the existing 40 Hectares of land, BBM has acquired an additional 2 hectare of land at Batu Tuhup to
construct 2nd truck workshop and camp facilities for the incoming coal hauling contractor.
The jetty site at Batu Tuhup has more than 300m river frontage. Construction progress at the Batu Tuhup Jetty is
advancing, with 70% of the permanent jetty development completed and essential permits secured as of June 2024. Civil
works have reached 90% completion and conveyor system fabrication is underway. Cokal has experienced a delay of 4-
6months in the construction schedule as a result of financials. The jetty is crucial for supporting increased coal
transportation volumes, with operational facilities such as a truck maintenance workshop and coal stockpile already
operational. Additional infrastructure, including a weighbridge and expanded stockpile, are being finalized to enhance
logistical efficiency.
Construction has included development efforts including measures to ensure compliance with environmental
regulations, such as improved dust suppression systems and better water management practices. The Installation of new
conveyor systems and loading equipment has been undertaken to improve the speed and efficiency of coal transfer from
trucks to barges, minimizing delays and optimizing logistics operations. Based on the revised schedule of completion
from main contractor, the conveyor line is expected to be operational by Q1 2025. In addition, there has been an upgrade
of safety protocols at the jetty, with additional safety equipment and training for personnel, ensuring a safer working
environment and reducing the risk of accidents. Continued investments that are being made in the jetty’s infrastructure to
further enhance capacity and operational efficiency in line with future expansion plans.
In order to become more efficient and to maximize coal transport, BBM is currently in the process of acquiring land in
the Buntok area as a long term ISP strategy. It is approximately 336 km from the Batu Tuhup Jetty and could be accessed
with a minimum of 300 feet barges. In addition as a mid term strategy, BBM is in the process of obtaining access to PJK
owned Mutu ISP at Buntok for storage and delivery of coal product.
Jetty Batu Tuhup Development Progress (Weight bridge and foundation has been in place)
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Batu Tuhup Jetty Infrastructure/Conveyor Construction
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Batu Tuhup Jetty 2nd truck workshop construction
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BBM Shipment Update
BBM successfully made its first shipment during the 2024 financial year. BBM delivered 2 (two) kinds of product, High
Termal Coal for the International Market and Low Volatile Hard Coking Coal for a local smelter.
No
Market
Buyer
Volume (MT)
1
International
TNB Fuel Service SDN BHD
7,525
2
Domestic
Risun Wei Shan Indonesia
7,822
3
International
Vinh Tan 4 Thermal Power Plant
3,852
4
Domestic
Kinrui New Energy Technologies Indonesia
7,318
26,517
BBM Shipment Update
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Infill Drilling Update
BBM infill drilling stage 1 at Pit 3 covering 100 Ha area in August 2023 was undertaken. 40 drillholes totalling 1,786m
have been completed with geophysical logging. This internal infill drilling exercise was aimed at confirming the previous
geological data including coal thickness and coal seam continuity to plan the mine planning sequence more efficiently.
Since the infill drilling data was mainly required for internal planning purposes, the results have been added to the
updated geological model which is used as a base for accurate mine pit planning.
Additional infill drilling at pit 3 expansion stage 2 is planned to be carried out in Q1 2025. The infill drilling stage 2 includes
33 holes with a total meter plan of 1300m covering a 150-hectare area, designed to improve the robust geological model
for the expansion of the mine operation in 2025.
BBM Drill Hole Map
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Mining Contracts
Cokal has designated PT. Levine Latersia Baratama (“LLB”) as the primary mining contractor on a non-exclusive basis to
provide mining contracting services at the BBM Mine site. LLB look over from the previous contractor, CBQ, who failed
to meet BBM production targets to the Company’s satisfaction.
LLB is responsible for Open Pit Overburden Mining Services and Coal Production & transportation from Pit to ROM
stockpile. To ramp up its production rate, LLB has entered into a Joint Venture with UPM to provide a more reliable and
larger fleet of 100t excavators.
Cokal has appointed Sun Mining Services (SMS) as its drilling and blasting services contractor at the BBM Mine, marking
a significant step forward in enhancing operational efficiency. SMS, an Australian company renowned for its smart
blasting solutions, brings expertise and innovative technology to the table, including the use of Wala Gel technology,
which has proven to reduce drilling and blasting costs and improve fragmentation. Drilling and blasting operations are
expected to commence in current year Q4 2024 in Pit 3 at the BBM Mine. This strategic partnership is anticipated to
enhance overburden digability and production rates, contributing to the rapid advancement of BBM Mine development.
The appointment of SMS is supported by a 5-year contract with an estimated blast material volume of 149 million BCM
and a contract value of USD 44 million. The contract terms include competitive unit rates for drilling, explosives, and
related equipment, ensuring cost-effectiveness and operational efficiency.
Future Coal Beneficiation Plan
It is anticipated that seams B, C and D in Pits 1 and 2 will be mined to produce PCI coal only. This coal will be crushed
to -50mm but not beneficiated.
J Seam in Pit 3 is currently being mined to produce coking coal. Most of the ash in run-of-mine (ROM) coal in the J seam
occurs in two or three thin (50mm) mudstone bands which are much harder than the friable vitrinite which comprises
90% to 92% of the coal. It is expected that the average 13% ROM ash can be reduced to less than 10% ash by screening
alone. Bearing in mind the BBM exploration experience of washing coal cores at 1.6sg provided 85% yield at 5% to 6%
ash, this is not an unreasonable expectation.
It is anticipated that coal with less than 10% ash, combined with the high swelling index, low sulphur and ultra low
phosphorus will be easily marketed compared with most coking coals in the market.
The elimination of the need for water jig washing will be a significant simplification of the preparation of coking coal
produced from BBM and will enable the beneficiation facility to be relocated as the mining operation advances to
minimise ROM coal haul distances.
The coal processing plant will be constructed in the medium term to enable the subsequent addition of a coal washing
jig, should it be determined that it will be more profitable to produce a lower (5% - 7%) ash product.
BBM has entered into a contract with PT CBI who will be responsible to install and operate a coal washing plant with
350mt/hr capacity. Additional studies on coal quality and processing plant are being carried out in order to finalize the
most efficient process for enhancing BBM’s current product quality.
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STRATEGIC PARTNERSHIP WITH PT PETRINDO JAYA KREASI
Cokal has entered into a strategic partnership with Indonesian coal company PT Petrindo Jaya Kreasi (IDX:CUAN) (“PJK”) to
bolster its operations. Under this partnership, PJK will provide advanced logistical support and infrastructure
enhancements, focusing on optimizing the transportation and handling of coal from the BBM Mine.
This collaboration aims to enhance operational efficiency, streamline coal deliveries, and expand market reach. The
partnership is expected to significantly contribute to Cokal’s growth and operational effectiveness in the coal sector.
Cokal has immediate access to PT Petrindo Owned Intermediate Coal Stockpile (“PT Mutu”) at Teluk Betung Buntok for
anticipated coal storage and delivery to the domestic and international market.
REGULATORY AND COMPLIANCE
The Cokal & BBM Boards continue to work closely with various regional and federal Indonesian Government
departments to ensure that all operations are fully compliant with the existing mining regulations.
CORPORATE ACTIVITY
Share Registry
During this financial year, the provider of shareholder registry services for the Company changed from Advanced Share
Registry Limited to Automic Pty Ltd. Please refer to the ASX announcement dated 3 March 2024 for further details.
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BOARD OF
DIRECTORS
Cokal/BBM has assembled an expert team to direct and manage Cokal’s BBM, and other mines, which will be operated mainly by
contractors.
Domenic Martino
Chairman & Non- Executive Director
Founding Director of Cokal and a Chartered Accountant with many years of
experience as a director of ASX listed companies
Previously CEO Deloitte Touche Tohmatsu, Australia
Key player in the creation of shareholder value in a number of ASX
companies including Sydney Gas, Pan Asia, Clean Global Energy, NuEnergy
Capital
Lengthy track record of operating in Indonesia, successfully closing a
number of energy and resources deals with key local players
Karan Bangur
Managing Director & CEO
Over a decade of experience in operating mining and logistics projects in
South East Asia, including projects in Indonesia
Significant experience with Indonesian mining laws
Director of Aahana Mineral Resources Sdn Bhd, the largest shareholder in
Cokal
Owner/operator of HME coal fleet in North Kalimantan
Evaluation of Iron Ore, Bauxite and Graphite concentrate recovery projects
in Indonesia
Logistics & port development in Indonesia and other parts of South Asia;
and developing & operating Iron Ore tenements in Malaysia
Allen Delbridge
Non-executive Director
Mining engineer with over 30 years experience in the mining industry
including Indonesia
A member of PERHAPI and Aus IMM and a recognised competent person
under the KCMI and JORC codes
Deep experience at all levels of operations and mine planning, including:
-Pit shell optimizations
- LOM ( and stage push back) pit design
- Ore Reserve reporting
- Start-up mine schedules/plans
- Tenders
- Developing Systems
- Business improvement projects and Financial evaluations
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MANAGEMENT TEAM
Andrew Ichwan CPA
Head of Finance
Graduated from Curtin University
(Perth, WA) and CPA Australia
qualified with over 15 year’s
experience.
Has held multiple finance /accounting
positions in both Australia and
Indonesia.
Previously held positions with Silver
Lake Resources Limited and Straits
Resources Limited.
Eddie Chin
President Commissioner of BBM
BSc (hons) Civil Engineering (University of
Glasgow)
President Commissioner of BBM since June 2019
Significant shareholder of Aahana Mineral
Resources Sdn Bhd, largest shareholder in Cokal
Founding member of major Indonesian coal
miner PT Bayan Resources tbk
CEO of the Bayan Group between 2005 and Jan
2018
Key person in the development of Bayan Group
into a globally significant coal producer
Managing Director of the Desaria Group of
Companies
Pak Sukardi
President Director of BBM
40 years of mining and plantation
industry experience in Indonesia
Includes operational roles and
Board/Senior management
positions
Luki Wilianto
Geology Manager Cokal
•
Geological Engineer with 15 years
Indonesian coal mining experience
Member of Aus IMM and an
Indonesian Competent Person of
“Ikatan Ahli Geologi”(CPI- IAGI)
Previous positions with PT Thiess
Contractors Indonesia, PT Britimindo
and PT Wahana Baratama Mining
(Bayan Resources)
•
Experience leading due diligence,
exploration programs and mining
studies, comprising geological
modellings, resources estimation, mine
planning and reporting in accordance
with the JORC Code amd KCMI.
Loke Cherng Huei
Director BBM
•
BE(civil) with 35 years mining,
marine and construction industry
experience in Malaysia and
Indonesia
•
Previously Director and General
Manager roles in the Desaria group
of companies in Malaysia
Muhamad Arie Cahyono
Mine Planning Manager Cokal
•
15 years mining experience, with
particular expertise in coal
geological modelling, mine
planning and management of
contractors
•
Previously held positions with PT
Thiess Contractors Indonesia, PT
Britmindo (Mining Consultant) and
PT Bayan Resources Tbk.
•
Member of PERHAPI and also
registered as Competent Person
Indonesia (CPI).
For personal use only
Annual Mineral Resources and Reserve Statement
ANNUAL REPORT 2024
26 | P a g e
The Mineral Resources and Ore Reserve statement included with this Annual Report has been prepared in accordance
with the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore
Reserves” (the JORC Code 2012) and the ASX Listing Rules.
Ore Reserves as at 30 June 2024
2024 Reserves (in-situ) - Mt
2023 Reserves (in-situ) - Mt
Annual change
Project
Proven
Probable
Total
Proven
Probable
Total
Mt
%
BBM
13.75
9.3
23.05
13.8
10.0
23.8
0.75
3.15%
Note: The reported Ore Reserves Total are approximately 43% PCI coal and 57% Coking coal by coal type. The
reported Ore Reserves represent the total tonnages for BBM, of which Cokal has a 60% interest. The reported
Mineral Resources and Ore Reserves were calculated using a price of US$170/t for coking coal and US$145/t for
PCI based on the current market price projection. Annual change was from actual coal mining progress of 53k ton
and 0.7m ton reduction on PCI Probable product due to lower coal price forecast. Totals may not add due to
rounding. Cut-off grade: minimum coal seam thickness of 0.30m.
Mineral Resources as at 30 June 2024
2024 Resources - Mt
2023 Resources - Mt
Annual change
Project
Measured Indicated
Inferred
Total
Measured Indicated
Inferred
Total
Mt
%
BBM
18.7
22.9
218.5
260.1
18.8
22.9
218.5
260.2
0.1
0.04%
Note: The reported Mineral Resources total represents the total tonnages for BBM, of which Cokal has a 60% interest.
The reported Mineral Resources were estimated up to a depth of 150m below topography for open pit potential, and
the potential for underground mining was estimated up to a depth of 500m below topography. Mineral Resources
are reported inclusive of Ore Reserves. Annual change was from actual coal mining progress of 53k ton. Cut-off grade:
minimum coal seam thickness of 0.30m
Mineral Resource and Ore Reserve Governance & Internal Controls
Cokal’s governance arrangements and internal controls for reporting its Mineral Resources and Ore Reserves and the
estimation process within BBM and evaluation of future projects, such as the TBAR Project, including:
-
oversight and approval of each annual statement by the Technical Director;
-
establishment of internal procedures and controls to meet JORC Code 2012 compliance in all
-
external reporting;
-
independent and/or internal review of estimates;
-
annual reconciliation with internal planning to validate reserve estimates for near-term production mines; and
-
Cokal Board approval of new and materially changed estimates.
The Competent Person is suitably qualified and experienced, as defined in the 2012 Edition of JORC.
For personal use only
Annual Mineral Resources and Reserve Statement
ANNUAL REPORT 2024
27 | P a g e
Competent Persons Statement
This Annual Ore Reserves Estimate in respect of the BBM Project, is based on, and fairly represents, information and
supporting documentation prepared by a competent person. The Ore Reserves Estimate as a whole has, as to the form
and content in which it appears, been approved by Mr Arie Cahyono. Mr Cahyono is a Competent Person and a member
of the Australasian Institute of Mining and Metallurgy and an employee of the Company. Mr Cahyono has sufficient
experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’. Mr Cahyono consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
The reporting of Coal Resources for the BBM Project has been carried out in accordance with the “Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code), prepared by the Joint Ore Reserves
Committee, December 2012. The information in the report to which this statement is attached, that relates to the Coal
Resources of BBM, is based on information reviewed by Mr Luki Wilianto, who is a Member of The Australian Institute
Mining and Metallurgy (AusIMM) and is a full-time employee of Cokal. Mr Wilianto has sufficient experience that is
relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Wilianto consents to the inclusion in the report of matters based on
his information in the form and context in which appears.
For personal use only
ANNUAL REPORT 2024
28 | P a g e
DIRECTORS’
REPORT
For personal use only
Directors’ Report
ANNUAL REPORT 2024
29 | P a g e
Your Directors present their report for the year ended 30 June 2024.
The following persons were Directors of Cokal Limited (“Group”, “consolidated entity” or “Cokal”) during the financial year
and up to the date of this report, unless otherwise stated:
Domenic Martino, Non-Executive Chairman
(Appointed Director on 24 December 2010 and Chairman on 27 January 2017)
B. Bus, FCPA
Mr. Martino, is a Chartered Accountant and an experienced director of ASX listed companies. Previously CEO of Deloitte
Touche Tohmatsu in Australia, he has significant experience in the development of "micro-cap" companies.
• Former CEO Deloitte Touche Tohmatsu Australia.
• Key player in the re-birth of a broad grouping of ASX companies including Sydney Gas, Pan Asia, Clean Global Energy,
NuEnergy Capital.
• Strong reputation in China.
• Lengthy track record of operating in Indonesia, successfully closed key energy and resources deals with key local players.
• Proven track record in capital raisings across a range of markets.
Karan Bangur, Non-Executive Director
(Appointed Director on 10 April 2019, Appointed Chief Executive Director on 30 June 2022)
BCom
Mr Bangur has over a decade of experience in operating mining and logistics projects in South East Asia. He is well
experienced and familiar with Indonesian mining and general laws relating to on ground operations due to his experience in
several projects in Indonesia.
Current ongoing and previous projects include:
• Operations of thermal coal mine in Tanah Grogot, East Kalimantan in capacity of financier.
• Operating fleet of HEMM (Heavy Earth Moving Equipment) in thermal coal mine project in Tarakan, North Kalimantan
in capacity of owner.
• He currently serves as Managing Director of Aahana Global Resources & Investment Pte Ltd, which is primarily
an investment and holding Co incorporated in Singapore 2008- Present.
• He serves as Director in Aahana Mineral Resources Sdn Bhd, which is the single majority shareholder in Cokal Ltd. 2019
- Present.
• Previous assignments involve evaluation and planning of Iron Ore, Bauxite Ore and Graphite concentrate recovery
projects in Indonesia.
• Previous projects include logistics and port development in Indonesia and other parts of SE Asia.
• Development and operating Iron Ore tenement in Malaysia including HEMM fleet management and rental services.
David (Allen) Delbridge, Non-Executive Director (Appointed on 17 March 2020)
B.Mining Engineering, PERHAPI, AusIMM
Mr Delbridge has over 30 years’ experience in the mining industry. He is a recognised competent person under the KCMI
code as well as for JORC reserve statement for open cut coal. He has international experience, working for over 7 years as
an expatriate in Indonesia. He has significant on-site operations experience, interactively providing practical and technical
direction and team leadership for maintaining and improving mining operations at a senior leadership level.
Current ongoing and previous projects include:
• Worked at Citic Pacific Mining on its Sino Iron Ore project in Western Australia
• Worked at Jiujiang Mining Australia Pty Ltd on its Cairn Hill project in South Australia
• Worked at Bayan Resources Group as Manager – Mine Planning and Development in Jakarta with operational sites in
Kalimantan
For personal use only
Directors’ Report
ANNUAL REPORT 2024
30 | P a g e
Louisa Martino (Youens), Joint Company Secretary
(Appointed on 9 August 2017)
BCom, CA, F FIN, FGIA
Ms Martino provides company secretarial and accounting services to a number of listed entities.
Previously Ms Martino worked for a corporate finance company, assisting with company compliance (ASIC and ASX) and
capital raisings. She also has experience working for a government organisation in its Business Development division where
she performed reviews of business opportunities and prepared business case analysis for those seeking Government
funding.
Prior to that, Ms Martino worked for a major accounting firm in Perth, London and Sydney where she provided corporate
advisory services, predominantly on IPOs and also performed due diligence reviews.
She has a Bachelor of Commerce from the University of Western Australia, is a member of Chartered Accountants Australia
and New Zealand, a fellow of the Financial Services Institute of Australasia (FINSIA) and a Fellow of the Governance Institute
of Australia (FGIA).
Miranda Yuan, Joint Company
Secretary (Appointed 1 July 2020)
MFin, MCom, CPA, GIA
Ms Yuan provides comprehensive accounting services and auditing assistance to a number of public and listed
companies through Indian Ocean Corporate. She has experience in company secretarial work in a broad range of ASX
listed companies. She also has experience working as a Finance Analyst to provide corporate advisory services for cross-
border M&A, capital raisings, IPOs/RTOs and performing due diligence reviews.
Ms Yuan is an honours graduate in Finance from Aberdeen University, she holds a Master degree of Commerce in
Finance from the University of New South of Wales and Master degree of Professional Accounting from Charles Sturt
University. Ms Yuan is an Associate member of Certified Practicing Accountant (CPA) Australia.
Interests in Shares and Options
At the date of this report, the interests of the Directors in the capital of Cokal Limited are shown in the table below.
Ordinary Shares
Options
Domenic Martino
41,688,512
-
Karan Bangur
221,641,719
-
David Delbridge
-
-
Principal Activities
The principal activities of the consolidated entity during the financial year were focused on the identification and
development of coal within the highly prospective Central Kalimantan coking coal basin in Indonesia.
Operating Results
For the year ended 30 June 2024, the loss for the consolidated entity after providing for income tax was US$9,826,413
(2023: US$9,268,600 ).
Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year.
For personal use only
Directors’ Report
ANNUAL REPORT 2024
31 | P a g e
Review of Operations
Detailed comments on operations and exploration programs up to the date of this report are included separately in the
Annual Report under Review of Operations.
Review of Financial Condition
Capital Structure
At 30 June 2024, the consolidated entity had 1,078,948,980 (2023: 1,078,948,980) ordinary shares and nil unlisted
options (2023: Nil) on issue.
Financial Position
The net assets of the consolidated entity have decreased by US$9,826,413 from US$1,357,207 at 30 June 2023 to net
liabilities of US$(8,469,206) at 30 June 2024.
Treasury Policy
The consolidated entity does not have a formally established treasury function. The Board is responsible for managing
the consolidated entity’s finance facilities.
Some goods and services purchased by the consolidated entity, along with the payments made to the vendors
of the Kalimantan coal projects, are in foreign currencies (AU dollars or Indonesian Rupiah).
The consolidated entity does not currently undertake hedging of any kind.
Liquidity and Funding
The consolidated entity believes it has sufficient access to funds to finance its operations and
exploration/development activities, and to allow the consolidated entity to take advantage of favourable business
opportunities, not specifically budgeted for, or to fund unforeseen expenditure.
Significant Changes in the State of Affairs
There have been no significant changes in the Group’s state of affairs during the year ended 30 June 2024.
Significant Events after the Reporting Date
No matters or circumstances have arisen since the end of the year which significantly affected or could significantly
affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years, except as follows:
•
Cokal has signed a binding term-sheet with PT Petrosea TBK (“Petrosea”), a major Indonesian mining services
company, to facilitate the near-term ramp-up of production from Cokal’s Bumi Barito Mineral (“BBM”)
metallurgical coal mine. The term sheet enables Cokal to expand operations and increase production at the
BBM mine, with Petrosea’s support to ensure efficient and sustainable coal production and the readiness for
production expansion, achieved by extending payment terms for mine service providers (such as mine
contractors, fuel and blasting) by an additional 120 days.
•
Cokal has signed a binding agreement with mining contractor PT Cipta Bersama Indonesia (“CBI”) to develop
an underground mining operation at Pit 1 of the BBM Metallurgical Coal Mine, to produce a PCI coal product
within 18 months, at zero cost to Cokal. This strategic Agreement represents a significant windfall for Cokal,
as ther were no plans to develop underground operations at BBM Pit 1 within the foreseeable future, given
capital constraints and a high level of requisite technical expertise.
Future Developments, Prospects and Business Strategies
Likely developments in the operations of the consolidated entity and the expected results of those operations in
subsequent financial years have been discussed where appropriate in the Annual Report under Review of Operations.
There are no further developments of which the Directors are aware which could be expected to affect the results of
the
consolidated entity’s operations in subsequent financial years.
For personal use only
Directors’ Report
ANNUAL REPORT 2024
32 | P a g e
Business Results
The prospects of the Group in developing its properties in Indonesia may be affected by a number of factors. These
factors are similar to most exploration companies moving through the exploration phase and attempting to get projects
into production. Some of these factors include:
•
Exploration - the results of the exploration activities at the BBM project and the tenements in Central Kalimantan
may be such that the estimated resources are insufficient to justify the financial viability of the projects.
•
Regulatory and Sovereign - the Group operates in Indonesia and deals with local regulatory authorities in relation
to the operation and development of its properties. The Group may not achieve the required local regulatory
approvals, or they may be significantly delayed enabling it to commence production.
•
Funding - the Group may require additional funding to move from the exploration/development phase to the
production phase of the BBM project and the tenements in Central Kalimantan. There is no certainty that the Group
will have access to available financial resources sufficient to fund its capital costs and/or operating costs at that
time.
•
Development - the Group is involved in developing greenfield projects in Indonesia which could result in capital
costs and/or operating costs at levels which do not justify the economic development of the project.
•
Market - there are numerous factors involved with early stage development of its properties such as the BBM
project, including variance in commodity price and labour costs which can result in projects being uneconomical.
Environmental Issues
The consolidated entity is subject to environmental regulation in relation to its exploration activities. Indonesia where
the Group’s main project is located in the principal laws are Act No.41 of 1999 regarding Forestry (the Forestry Law), Act
No.4 of 2009 regarding Minerals and Coal Mining (the Mining Law) and Act No. 32 of 2009 regarding Environmental
Protection and Management (the Environment Law). There are no matters that have arisen in relation to environmental
issues up to the date of this report.
Non-Audit Services
No non-audit services were provided by Cokal’s auditor, Hall Chadwick during the financial year ended 30 June 2024
(2023: Nil).
For personal use only
Directors’ Report
ANNUAL REPORT 2024
33 | P a g e
Remuneration Report (Audited)
This remuneration report for the year ended 30 June 2024 outlines the remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been
audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined
as those persons having authority and responsibility for planning, directing and controlling the major activities of the
Group, directly or indirectly, including any director (whether executive or otherwise) of the consolidated entity.
For the purposes of this report, the term “executive” includes the Chief Executive Officer, directors and other senior
management executives of the Group.
Remuneration report approval at FY23 AGM
The remuneration report for the 2023 financial year received positive shareholder support with proxy votes of 79.04% in
favour (of shares voted).
Remuneration Policy
The performance of the consolidated entity depends upon the quality of its directors and executives. To prosper,
the consolidated entity must attract, motivate, and retain highly skilled directors and executives.
The Board does not presently have a Remuneration and Nomination Committee. The directors consider that the
consolidated entity is not of a size, nor are its affairs of such complexity, as to justify the formation of any other special or
separate committee at this time. All matters which might be dealt with by such a committee are reviewed by the directors
meeting as a Board.
The Board, in carrying out the functions of the Remuneration and Nomination Committee, is responsible for reviewing and
negotiating the compensation arrangements of senior executives and consultants.
The Board, in carrying out the functions of the Remuneration and Nomination Committee, assess the appropriateness of
the nature and amount of remuneration of such officers on a periodic basis by reference to relevant employment market
conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board
and executive team. Such officers are given the opportunity to receive their base remuneration in a variety of forms
including cash and fringe benefits. It is intended that the manner of payments chosen will be optimal for the recipient
without creating undue cost for the consolidated entity.
The consolidated entity aims to reward the Executive Directors and senior management with a level and mix of
remuneration commensurate with their position and responsibilities within the consolidated entity. The Board’s policy is
to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration
component and offering short and/or long-term incentives as appropriate.
In accordance with best practice corporate governance, the structure of non-executive directors, Executive Directors and
senior management remuneration is separate and distinct.
Non-executive Director Remuneration
The Board seeks to set aggregate remuneration at a level which provides the consolidated entity with the ability to attract
and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Constitution of Cokal Limited and the ASX Listing Rules specify that the non-executive directors are entitled to
remuneration as determined by the consolidated entity in a general meeting to be apportioned among them in such
manner as the Directors agree and, in default of agreement, equally. The aggregate remuneration currently determined
by Cokal Limited is AU$500,000 per annum. Additionally, non-executive directors will be entitled to be reimbursed for
properly incurred expenses.
If a non-executive director performs extra services, which in the opinion of the directors are outside the scope of the
ordinary duties of the director, the consolidated entity may remunerate that director by payment of a fixed sum
determined by the directors in addition to or instead of the remuneration referred to above. However, no payment can
be made if the effect would be to exceed the maximum aggregate amount payable to non-executive directors. A non-
executive director is entitled to be paid travel and other expenses properly incurred by them in attending directors’ or
general meetings of Cokal Limited or otherwise in connection with the business of the consolidated entity.
The remuneration of the non-executive directors for the year ending 30 June 2024 is detailed in this Remuneration Report.
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ANNUAL REPORT 2024
34 | P a g e
Directors’ Report
Executive Directors and Senior Management Remuneration
The consolidated entity aims to reward the Executive Directors and senior management with a level and mix of
remuneration commensurate with their position and responsibilities within the consolidated entity so as to:
• reward Executives for consolidated entity and individual performance;
• align the interests of executives with those of shareholders;
• link reward with the strategic goals and performance of the consolidated entity; and
• ensure total remuneration is competitive by market standards.
The remuneration of the Executive Directors and senior management may from time to time be fixed by the Board. As
noted above, the Board’s policy is to align the Executive Directors and senior management objectives with shareholder
and business objectives by providing a fixed remuneration component and offering short and/or long-term incentives
as appropriate.
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the
position and is competitive in the market. Short-term incentives may be provided in the form of performance bonuses.
Fixed remuneration and short-term incentives are reviewed annually by the Board, in carrying out the functions of the
Remuneration Committee, and the process consists of a review of Company-wide and individual performance, relevant
comparative remuneration in the market and internal, and where appropriate, external advice on policies and practices.
Senior management are given the opportunity to receive their fixed remuneration in a variety of forms including cash
and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen
will be optimal for the recipient without creating undue cost for the consolidated entity.
Long-term incentives may be provided in the form of options and/or the issue of shares following the completion of
satisfactory time periods of service. The consolidated entity uses employee continuity of service and the future share
price to align comparative shareholder return and reward for executives.
The remuneration of the Executive Directors and senior management for the year ended 30 June 2024 is detailed in this
Remuneration Report.
Relationship between Remuneration and Consolidated Entity Performance
During the financial year, the consolidated entity has generated losses as its principal activity was exploration and
development within the Central Kalimantan coking coal basin in Indonesia.
The following table shows the performances of the consolidated entity for the last five years:
Year-end (30 June)
2024
2023
2022
2021
2020
Share price (US$)
0.06
0.12
0.10
0.04
0.04
Basic (loss) per share (US
cents)
(0.91)
(0.86)
(0.76)
(0.29)
(0.28)
There were no dividends paid during the year.
As the consolidated entity was still in the exploration and development stage during the financial year, the link between
remuneration, consolidated entity performance and shareholder wealth is tenuous. Share prices are subject to the
influence of coal prices and market sentiment toward the sector, and as such increases or decreases may occur quite
independent of executive performance or remuneration.
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ANNUAL REPORT 2024
35 | P a g e
Directors’ Report
Employment and Services Agreements
It is the Board’s policy that employment and/or services agreements are entered into with all Executive Directors, senior
management, and employees.
Agreements do not provide for pre-determining compensation values or method of payment. Rather the amount of
compensation is determined by the Board, where applicable with the remuneration policy set out above.
KMP are entitled to their statutory entitlements, where applicable of accrued annual leave and long service leave
together with any superannuation on termination. No other termination payments are payable.
Chief Executive Officer
Mr Karan Bangur was appointed Chief Executive Officer on 13 July 2022 on the following terms:
•
Appointment on an ongoing basis subject to termination by either party
•
A base fee of A$240,000 per annum subject to annual review by the Board
•
The Company or the CEO may terminate the agreement by providing three months’ notice. The payment of a
termination benefit is subject to shareholder approval and was approved at the 2022 Annual General Meeting
Details of Key Management Personnel (KMP)
(i)
Directors
Domenic Martino, Chairman and Non-Executive Director (appointed Non-Executive Director 24 December 2010,
appointed Chairman on 27 January 2017
Karan Bangur, Executive Director (appointed 10 April 2019) and Chief Executive Officer (appointed 30 June 2022)
David Delbridge, Non-Executive Director (appointed 17 March 2020)
(ii)
Senior Management
Nil
Remuneration Details
The following table of benefits and payments details, in respect to the financial years ended 30 June 2024 and 2023, the
component of remuneration for each key management person of the consolidated entity:
Short-Term Benefits
Post-
Termination
Share-based
Total
Employment
Benefits
payments
2024
Salary &
Fees
Cash
Bonus
Other short
-term
benefits
Superannuation
Equity-
settled
(options)
Cash-settled
%
Remuneration
as equity
US$
US$
US$
US$
US$
US$
US$
US$
Directors
Domenic Martino
51,876
-
-
-
-
-
-
51,876
-
Karan Bangur*
147,133
-
1,743
955
-
-
-
149,831
-
David Delbridge
23,580
-
-
-
-
-
-
23,580
-
Total
222,589
-
1,743
955
-
-
-
225,287
-
Short-Term Benefits
Post-
Termination
Share-based
Total
Employment
Benefits
payments
2023
Salary &
Fees
Cash
Bonus
Other short
-term
benefits
Superannuation
Equity-
settled
(options)
Cash-settled
%
Remuneration
as equity
US$
US$
US$
US$
US$
US$
US$
US$
Directors
Domenic Martino
53,312
-
-
-
-
-
-
53,312
-
Karan Bangur*
150,179
-
5,284
987
-
-
-
156,450
-
David Delbridge
24,233
-
-
-
-
-
-
24,233
-
Total
227,724
-
5,284
987
-
-
-
233,995
-
* In addition to director fees, Mr Bangur receive fees for services provided to BBM which are included in the schedule
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ANNUAL REPORT 2024
36 | P a g e
Directors’ Report
Cash Bonuses, Performance-related Bonuses and Share-based Payments
KMP and other executives may be paid cash bonuses or performance-related bonuses. There were nil remuneration
options on issue during the 2024 financial year to KMP.
Options holdings
Details of options held and share-based payments to KMP and other executives awarded and vested/unvested during the
year ended 30 June 2024 and 30 June 2023 are detailed in the table below:
Balance
1 July 2023
Granted as
Remuneration
Exercise
of Options
Net Change
Other
Balance
30 June 2024
Total vested
at 30 June
2024
Total vested
and
exercisable at
30 June 2024
Total vested and
unexercisable at
30 June 2024
Directors
Domenic Martino
-
-
-
-
-
-
-
-
Karan Bangur
-
-
-
-
-
-
-
-
David Delbridge
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
Balance
1 July 2022
Granted as
Remuneration
Exercise
of Options
Net Change
Other
Balance
30 June 2023
Total vested
at 30 June
2023
Total vested
and
exercisable at
30 June 2023
Total vested and
unexercisable at
30 June 2023
Directors
Domenic Martino
-
-
-
-
-
-
-
-
Karan Bangur
37,500,000
-
(37,000,000)
(500,000)
-
-
-
-
David Delbridge
-
-
-
-
-
-
-
-
Total
37,500,000
-
(37,000,000)
(500,000)
-
-
-
-
The options were issued to the director and senior management of Cokal Limited to align comparative shareholder return
and reward for director and senior management.
All options issued by Cokal Limited entitle the holder to one ordinary share in Cokal Limited for each option exercised.
All options granted as part of remuneration were granted for nil consideration. Once vested, options can be exercised
at any time up to the expiry date.
The consolidated entity does not currently have a policy prohibiting directors and executives from entering into
arrangements to protect the value of unvested options. No directors or executives have entered into contracts to hedge
their exposure to options awarded as part of their remuneration package.
Shareholdings
Details of ordinary shares held directly, indirectly or beneficially by KMP and their related parties are as follows:
Balance
1 July 2023
Issued as
Remuneration
On Exercise
of Options
Net Change
Other
Balance
30 June 2024
Directors
Domenic Martino
41,688,512
-
-
-
41,688,512
Karan Bangur
221,641,719
-
-
500,000
222,141,719
David Delbridge
-
-
-
-
-
Total
226,330,231
-
-
-
263,830,231
For personal use only
ANNUAL REPORT 2024
37 | P a g e
Directors’ Report
Shareholdings (cond’t)
Balance
1 July 2022
Issued as
Remuneration
On Exercise
of Options
Net Change
Other
Balance
30 June 2023 ●
Directors
Domenic Martino
41,688,512
-
-
-
41,688,512
Karan Bangur
184,641,719
-
37,000,000
-
221,641,719
David Delbridge
-
-
-
-
-
Total
226,330,231
-
37,000,000
-
263,330,231
Transactions with KMP and their related entities
Mr Domenic Martino
•
As at 30 June 2024 director fees totalling US$4,323 (2022: US$46,200) remain outstanding to Mr Martino.
•
On 9 August 2017 the Company entered into an agreement with Indian Ocean Corporate Pty Ltd, a company of which
Mr Martino is a director, for company secretarial services at a cost of AU$4,400 (incl GST) per month and increased
to AU$6,600 (incl GST) from 1 January 2022. The services are based on normal commercial terms and conditions.
During the 2024 financial year, Indian Ocean Capital Pty Ltd (associated company to Indian Ocean Corporate Pty Ltd)
has provided company secretarial services totalling US$51,876 (2023: US$52,260), assistance with the preparation
of reports totalling US$Nil (2023:US$22,110) and a management consulting service totalling US$43,230 (2023: US$
33,500). Indian Ocean Consulting Group Pty Ltd has provided company taxation services totalling US$1,310
(2023:US$12,160). As at 30 June 2024, company secretarial fees of US$17,354 (2023: US$Nil), management
consulting services of US$17,357 (2023:US$Nil) and company taxation services of US$1,310 (2023:US$8,381) remain
outstanding.
Mr Karan Bangur
•
As at 30 June 2024 director fees totalling US$75,980 (2023: US$Nil) remain outstanding to Mr Bangur.
Mr David Delbridge
•
As at 30 June 2024 director fees totalling US$1,965 (2023: US$Nil) remain outstanding to Mr Delbridge.
END OF REMUNERATION REPORT
For personal use only
ANNUAL REPORT 2024
38 | P a g e
Directors’ Report
Directors’ Meetings
The number of meetings of Directors held during the year and the number of meetings attended by each Director was
as follows:
Board
Number of
meetings held
while in office
Meetings
attended
Domenic Martino
7
7
Karan Bangur
7
7
David Delbridge
7
6
Indemnification and Insurance of Directors, Officers and Auditor
Each of the current Directors and Secretaries of Cokal Limited have entered into a Deed with Cokal Limited whereby
Cokal Limited has provided certain contractual rights of access to books and records of Cokal Limited to those Directors
and Secretaries.
Cokal Limited has insured all of the Directors of the consolidated entity. The contract of insurance prohibits the
disclosure of the nature of the liabilities covered and amount of the premium paid. The Corporations Act does not require
disclosure of the information in these circumstances.
The Company has not otherwise, during or since the financial year, except to the extent permitted by law, indemnified
or agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred
as such an officer or auditor.
Options
At 30 June 2024, there were Nil unissued ordinary shares under options. (2023: Nil)
For personal use only
ANNUAL REPORT 2024
39 | P a g e
Directors’ Report
Proceedings on Behalf of the Consolidated Entity
No person has applied for leave of Court to bring proceedings on behalf of the consolidated entity or intervene in any
proceedings to which the consolidated entity is a party for the purposes of taking responsibility on behalf of the
consolidated entity for all or any part of those proceedings.
The consolidated entity was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
The Auditor’s Independence Declaration forms part of the Directors’ Report and can be found on page 40.
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Cokal
Limited support and have adhered to the principles of corporate governance. Cokal Limited’s Corporate Governance
Statement has been made publicly available on the Company’s website at: www.cokal.com.au.
Annual Resource and Reserve Statement
The Company includes its Annual Resource and Reserve Statement in this Annual Report. The Statement can also be found
on the Company’s website at www.cokal.com.au.
This report is signed in accordance with a resolution of the directors.
Cokal Limited
Domenic Martino
Chairman
Sydney, 30 September 2024
For personal use only
For personal use only
ANNUAL REPORT 2024
41 | P a g e
Consolidated Statement of Profit or Loss and Other
Comprehensive Income for the year ended 30 June
2024
Note
2024
2023
US$
US$
Revenue and other income
2
3,696,243
16,373
Cost of goods sold
(2,766,904)
-
Employee benefits expense
(953,399)
(818,971)
Depreciation and amortisation expense
(702,653)
(431,281)
Production expenses
(1,796,473)
(1,929,993)
Barging expenses
(606,910)
-
Finance costs
(168,760)
(3,100)
Legal expenses
(20,391)
(144,151)
Administration and consulting expenses
(551,438)
(524,188)
Licence fees
(285,233)
(465,306)
Royalty expense
(853,367)
(120,000)
Capital participation fee
16
(4,800,000)
(4,800,000)
Other expenses
(17,128)
(47,983)
Loss before income tax expense
(9,826,413)
(9,268,600)
Income tax expense
4
-
-
Loss for the period
(9,826,413)
(9,268,600)
Other comprehensive income
Items may be reclassified to profit or loss in
subsequent periods (net of tax):
Exchange translation differences
-
-
Total comprehensive loss for the period
(9,826,413)
(9,268,600)
Loss per share for the loss attributable to owners of Cokal Limited:
Cents
Cents
Loss per share (cents per share)
6
(0.91)
(0.86)
Diluted loss per share (cents per share)
6
(0.91)
(0.86)
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
For personal use only
ANNUAL REPORT 2024
42 | P a g e
Consolidated Statement of Financial Position as at 30
June 2024
Note
2024
2023
US$
US$
Current Assets
Cash and cash equivalents
7
481,813
1,342,513
Short term deposits
7
1,036,712
142,660
Inventory
9
1,695,157
3,348,390
Trade and other receivables
13
38,918
10,117
Other current assets
13
847,345
689,167
Total Current Assets
4,099,945
5,532,847
Non-Current Assets
Property, plant and equipment
10
15,262,593
11,597,636
Exploration and evaluation assets
11
1,606,585
1,606,585
Mines under development
12
23,744,327
23,754,966
Right of use assets
15(a)
255,597
624,952
Other non-current assets
13
976
976
Total Non-Current Assets
40,870,078
37,585,115
TOTAL ASSETS
44,970,023
43,117,962
Current Liabilities
Accounts payable and others
14
18,118,674
11,669,229
Lease liabilities
15(b)
247,019
286,610
Borrowings
16
5,247,992
2,060,406
Total Current Liabilities
23,613,685
14,016,245
Non-Current Liabilities
Accounts payable and others
14
9,261,535
9,261,535
Lease liabilities
15(b)
8,066
227,245
Provision for rehabilitation
555,943
305,730
Borrowings
16
20,000,000
17,950,000
Total Non-Current Liabilities
29,825,544
27,744,510
TOTAL LIABILITIES
53,439,229
41,760,755
NET ASSETS
(8,469,206)
1,357,207
Equity
Issued capital
17
106,375,841
106,375,841
Reserves
18
6,512,247
6,512,247
Accumulated losses
(121,357,294)
(111,530,881)
TOTAL EQUITY
(8,469,206)
1,357,207
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
For personal use only
ANNUAL REPORT 2024
43 | P a g e
Consolidated Statement of Changes in Equity for
the year ended 30 June 2024
Issued
capital
Translation
Reserves
Share Based
Payment
Reserves
Accumulated
losses
Total
US$
US$
US$
US$
US$
At 1 July 2023
106,375,841
(1,417,999)
7,930,246
(111,530,881)
1,357,207
Total comprehensive loss for the year
Loss for the year
-
-
-
(9,826,413)
(9,826,413)
Other comprehensive income
-
-
-
-
-
-
-
-
(9,826,413)
(9,826,413)
At 30 June 2024
106,375,841
(1,417,999)
7,930,246
(121,357,294)
(8,469,206)
At 1 July 2022
95,721,944
(1,417,999)
7,930,246
(102,262,281)
(28,090)
Total comprehensive loss for the year
Loss for the year
-
-
-
(9,268,600)
(9,268,600)
Other comprehensive income
-
-
-
-
-
-
-
-
(9,268,600)
(9,268,600)
Transactions with owners in their capacity as owners
Issue of share capital, net of costs
10.653,897
-
-
-
10,653,897
10,653,897
-
-
-
10,653,897
At 30 June 2023
106,375,841
(1,417,999)
7,930,246
(111,530,881)
1,357,207
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
For personal use only
ANNUAL REPORT 2024
44 | P a g e
Consolidated Statement of Cash Flows for
the year ended 30 June 2024
Note
2024
2023
US$
US$
Cash Flows from Operating Activities
Receipts from customers
3,462,579
1,849,702
Payments to suppliers and employees
(4,254,818)
(7,649,193)
Interest and other income received
3,153
15,694
Finance costs paid
(168,760)
(3,100)
Net cash outflow from operating activities
23
(957,846)
(5,786,897)
Cash Flows from Investing Activities
Payments for deposits
(894,052)
-
Payments for property, plant and equipment
(3,994,205)
(7,580,157)
Net cash outflow from investing activities
(4,888,257)
(7,580,157)
Cash Flows from Financing Activities
Proceeds from issue of shares
17
-
10,653,897
Repayment of lease
(252,181)
(239,367)
Proceeds from borrowings
5,237,584
3,938,818
Net cash inflow from financing activities
4,985,403
14,353,348
Cash and cash equivalents at beginning of year
1,342,513
356,219
Net increase (decrease) in cash and cash
equivalents
(860,700)
986,294
Cash and cash equivalents at end of year
7
481,813
1,342,513
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
For personal use only
ANNUAL REPORT 2024
45 | P a g e
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
Note 1: About this Report
(a) General information
The consolidated financial statements of Cokal Limited for the year ended 30 June 2024 were authorised for issue in accordance
with a resolution of the Directors dated 30 September 2024 and covers the consolidated entity (the “Group” or “Cokal”) consisting
of Cokal Limited (the “Company”) and its subsidiaries.
The financial statements are presented in United States Dollars (“US$”).
Cokal Limited (the parent) is a company limited by shares, incorporated and domiciled in Australia, whose shares are publicly
traded on the Australian Securities Exchange.
The principal activities of the Group during the year were focused on the identification and development of coal within the highly
prospective Central Kalimantan coking coal basin in Indonesia.
(b) Basis of preparation
The financial statements are general purpose financial statements which have been prepared in accordance with Australian
Accounting Standards and the Corporations Act 2001.
The financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
The financial statements have been prepared on a historical cost basis.
(c) Going concern
The financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities
and the realisation of assets and discharge of liabilities in the ordinary course of business.
For the year ended 30 June 2024 the Group recorded a loss of US$9,826,413 (30 June 2023: loss of US$9,268,600) and a net
operating cash outflow U$957,846 (30 June 2023: US$5,786,897).
As at 30 June 2024, the Group’s current liabilities exceeded the current assets by US$19,513,740 (30 June 2023: US$8,483,398)
and had net liabilities US$(8,469,206) (30 June 2023: Net assets US$1,357,207)
As at 30 June, the Group’s arrears of trade and other payables means it’s ability to continue as a going concern is dependent on
creditors, including management and the directors, extending payment terms, providing informal financial support and not
demanding payment of amounts owed to them in excess of the Group’s available funds at the time. At the date of this report, no
creditor or lender of the Group have made demands for payment.
The Group has a US$20m debt financing facility for development of the Bumi Barito Mineral (BBM) Coking Coal Project with
International Commodity Trade Pte Ltd (“ICT”). During this financial year, a further amount of a US$ 3 million short term loan
facility was provided by ICT with a facility fee of 20% p.a.
A portion of the current liabilities are payable over time and from production. The Group has a commission payable of
US$9,261,535 based on an agreement with Alpine Invest Holdings Ltd. This amount is re-payable at the greater of US$10,000 per
month and US$2.00 per tonne of coal sold by BBM and TBAR on a monthly basis. Based on original term an amount of US$2
million payable to BMA is also included in current liabilities and is to be repaid based on US$ 5 per tonne payable over the 1st
200,000 mt sold and US$ 10 for the subsequent 100,000 mt.
The Directors are confident given the current progress towards mining at BBM that the Group will be successful in its endeavours
to develop the larger BBM project. The directors believe that the commencement of operations at the BBM project (and the
forecast generating of operating cash inflows) will enable it to satisfy its working capital requirements (including its arrears of
trade and other payables). This being the case, the directors have a reasonable expectation that the Group’s creditors will
continue to extend payment terms, provide informal financial support and not demand payment of amounts owed to them in
excess of the Group’s available funds. As a result, the financial report has been prepared on a going concern basis.
The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts
or to the amounts and classification of liabilities should the Group be unsuccessful in raising funds to enable it to realise its assets
and discharge its liabilities in the ordinary course of business.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
46 | P a g e
(d) New accounting standards and interpretations
i.
Changes in accounting policy and disclosures
The Group has not early adopted other standards, interpretations or amendments that has been issued but are not
yet effective.
ii.
Accounting Standards and Interpretations issued but not yet effective
The Group has adopted all the mandatory new and amended Accounting Standards issued that are relevant to its
operations and effective for the current reporting period. There was no material impact on the financial report as a
result of the mandatory new and amended Accounting Standards adopted.
(e) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries at reporting date.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and
has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and
only if the Group has:
•
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
•
Exposure, or rights, to variable returns from its involvement with the investee; and
•
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
•
The contractual arrangements with the other vote holders of the investee;
•
Rights arising from other contractual arrangements; and
•
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the period are included in the statement of comprehensive income from the date the Group
gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
with the Group’s accounting policies. All intra-Group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it:
•
De-recognises the assets (including goodwill) and liabilities of the subsidiary;
•
De-recognises the carrying amount of any non-controlling interests;
•
De-recognises the cumulative translation differences recorded in equity;
•
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 the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
47 | P a g e
(f) Critical accounting estimates and judgments
Details of critical accounting estimates and judgements about the future made by management at the end of the reporting
period are set out below:
(i) Impairment of non-financial assets
The Group assesses each reporting period to determine whether any indication of impairment exists. Where an indicator
of impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair
value less costs of disposal (FVLCD) and value in use (VIU). The assessments require the use of estimates and assumptions
such as long term coal prices (considering current and historical prices, price trends and related factors), discount rates,
operating costs, future capital requirements and decommissioning operating performance (which includes production and
sales volumes). These estimates and assumptions are subject to risks and uncertainty. Therefore, there is a possibility that
changes in circumstances will impact this project, which may impact the recoverable amount of the asset.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The Group considers any third party offers when forming a view on fair
value, or Enterprise Value (EV) that the market participants willing to pay for acquisition of the Group’s shares.
(ii) Exploration and evaluation assets
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement to
determine whether future economic benefits are likely, from either exploration or sale, or whether activities have not yet
reached a stage which permits a reasonable assessment of the existence of technically feasible and commercially viable
reserves. The determination of reserves and resources is itself and estimation process that requires varying degrees of
uncertainty depending on how the resources are classified. These estimates directly impact when the Group defers
exploration and evaluation expenditure. The deferral policy requires management to make certain estimates and
assumptions about future events and circumstances, in particular, whether an economically viable extraction operation
can be established. Any such estimates and assumptions may change as new information becomes available. If, after
expenditure is capitalised, information becomes available suggesting that the recovery of the expenditure is unlikely, the
relevant capitalised amount is written off in profit or loss in the statement of comprehensive income in the period when
the new information becomes available.
At reporting date, certain tenements have reached a renewal date or will reach a renewal date in the next 12 months.
These tenements remain current until an official government expiry notice is issued. The directors are of the opinion that
while they are due for renewal, as no expiry notice has been received they remain current. If renewal is not forthcoming,
the amounts capitalised will likely be de-recognised.
(iii) Mine under development assets
The Group uses its judgement to assess the stage of each mine under development to determine when a mine moves into
the production phase, this being when the mine is substantially complete and ready for its intended use. The Group
considers various relevant criteria to assess when the production phase is considered to have commenced. At this point,
all related amounts are reclassified from ‘Mines under development’ to ‘Mines in production’. Some of the criteria used to
identify the production start date include, but are not limited to:
1.
Level of capital expenditure incurred compared with the original development cost estimate;
2.
Completion of a reasonable period of testing of the mine plant and equipment;
3.
Ability to produce metal in saleable form (within specifications);
4.
Ability to sustain ongoing production of metal; and
5.
Positive cash flow position from operations.
When a mine development project moves into the production phase, the capitalisation of certain mine development costs
and pre-production revenues cease and costs are either regarded as forming part of the cost of inventory or expensed,
except for costs that qualify for capitalisation relating to mining asset additions or improvements, underground mine
development or mineable reserve development. It is also at this point that amortisation commences. Amortisation is
calculated in proportion to actual production when measured against mineable resources in the mine area developed.
Expenses are capitalised to mine development costs except variable costs directly related to any production are capitalised
to inventory. The carrying value of mine development and pre-production is reviewed by directors to ensure it is not in
excess of its recoverable amount.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
48 | P a g e
(f) Critical accounting estimates and judgments (Cont’d)
(iv) Taxation
The Group’s accounting policy for taxation requires management’s judgement as to the types of arrangements considered
to be a tax on income in contrast to an operating cost. Judgement is also required in assessing whether deferred tax assets
and certain deferred tax liabilities are recognised on the balance sheet.
Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are
recognised only where it is considered more likely than not that they will be recovered, which is dependent on the
generation of sufficient future taxable profits. Judgements are also required about the application of income tax
legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes
in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities
recognised on the balance sheet and the amount of other tax losses and temporary differences not yet recognised. In such
circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment,
resulting in a corresponding credit or change to the income statement.
(v) Share-based payments
The Group uses estimates to determine the fair value of equity instruments issued to directors, executives, employees and
suppliers. Further detail of estimates used in determining the value of share-based payments is included in Note 24.
(vi) Joint arrangement
Judgement is also required to classify a joint arrangement. Classifying the arrangement requires the Group to assess its
rights and obligations arising from the arrangement. Specifically, the Group considers:
•
The structure of the joint arrangement – whether it’s structured through a separate vehicle
•
When the arrangement is structure through a separate vehicle, the Group also considers the rights and obligations
arising from:
-
The legal form of the separate vehicle;
-
The terms of the contractual arrangement; and
-
Other facts and circumstances (when relevant).
This assessment often requires significant judgement, and a different conclusion on joint control and also whether the
arrangement is a joint operation or a joint venture, may materially impact the accounting.
Per agreement with subsidiary shareholders, the relevant activities including financing of certain entities’ are managed and
controlled by Cokal until the completion of Initial Work Program. The rights of other shareholders to receive returns and
obligations for expenditure are only established when they contribute their share of capital upon completion of the Initial
Work Program by Cokal. Given this, to date it has been determined that Cokal controls these entities and hence currently
consolidates them as subsidiaries. In future periods, however, the accounting treatment of these entities will be required to
be reassessed upon completion of Initial Work Program. This may lead to a change in accounting if it is then determined that
instead of controlling these entities, Cokal now only jointly controls these and they are joint arrangements. Depending on
whether these joint arrangements are classified as joint ventures or joint operations, this may require either equity accounting
(for a joint venture) or recognition of Cokal’s share of the assets, liabilities, income and expenses of the arrangement (for a
joint operation). Directors have not reassessed the impact at reporting date as the Initial Work Program has not been
completed at this date.
(g)
Impairment of non-financial assets other than goodwill
At the end of each reporting period the Group assesses whether there is any indication that individual assets other than
goodwill, are impaired. Where impairment indicators exist, recoverable amount is determined and impairment losses are
recognised in profit or loss where the asset's carrying value exceeds its recoverable amount. Recoverable amount is the higher
of an asset's FVLCD and VIU. For the purpose of assessing VIU, 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.
Where it is not possible to estimate the recoverable amount for an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Assets other than goodwill that have previously been impaired are tested for possible reversal of the impairment whenever
events or changes in circumstances indicate that the impairment may have reversed.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
49 | P a g e
(h) Provisions
Provisions for legal claims and make good obligations are recognised when the Group has a present legal or constructive
obligation as a result of a past event, it is probable that that an outflow of economic resources will be required to settle the
obligation and the amount can be reliably estimated.
(i)
GST
Revenues, expenses and assets are recognised net of GST except where GST incurred on a purchase of goods and services is
not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset
or as part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable
to, the taxation authority is included as part of receivables or payables in the statements of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(j)
Fair value measurement
The Group did not have any financial assets and liabilities measured at fair value at reporting date. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:
•
In the principal market for the asset or liability; or
•
In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:
•
Level 1 — Quoted (unadjusted) market prices in active markets 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
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
50 | P a g e
(k) Current versus non-current classification
The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An
asset is current when it is either:
• Expected to be realised or intended to be sold or consumed in the normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realised within 12 months after the reporting period; or
• 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 current when either:
• It is expected to be settled in the 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.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(l) Other accounting policies
Oher accounting policies applied by the Group are disclosed in the following notes:
Note 2 Revenue and Other Income
Note 4 Income Tax
Note 6 Loss per Share
Note 7 Cash and Cash Equivalent
Note 9 Inventories
Note 10 Property, Plant and Equipment
Note 11 Exploration and Evaluation Assets
Note 12 Mines under Development
Note 14 Accounts Payable and Others
Note 15 Leases
Note 17 Issued Capital
Note 18 Reserves
Note 19 Parent Entity Information
Note 22 Operating Segments
Note 24 Share-based Payments
Note 26 Financial Risk Management
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
51 | P a g e
Note 2: Revenue and Other Income
2024
2023
US$
US$
Sales revenue
3,674,906
-
Other income
21,337
16,373
Total other income
3,696,243
16,373
Accounting Policy: Revenue Recognition
Sales revenue
Revenue from the sale of coal is recognised when control of the product has transferred to the customer. Control of the
product is considered transferred to the customer at the time of delivery, usually on a Free on Board ("FOB") basis (when the
delivery of goods is carried out on board the ship that will carry out the transportation of goods) or a Free Along Ship ("FAS")
basis (when the goods are handed over by the seller beside the ship at the loading port). A receivable is recognised when
control of the products is delivered as this is the point in time that the consideration is unconditional and when control of the
product is transferred to the customer.
Note 3: Dividends and Franking Credits
There were no dividends paid or recommended during the financial year (30 June 2023: Nil).
There were no franking credits available to the shareholders of the Group (30 June 2023: Nil).
Note 4: Income Tax
2024
US$
2023
US$
The prima facie income tax on the loss is reconciled to the income tax expense as follows:
Prima facie tax benefit at 25% on loss before income tax
(2,456,603)
(2,317,150)
Add tax effect of:
-
Tax adjustments and impact of tax rate
differences
(1,001,557)
(763,681)
-
Deferred tax asset not recognised
3,458,160
3,080,831
Income tax expense
-
-
Deferred tax assets
Deductible temporary differences
-
-
Carry forward tax losses
19,160,524
15,702,364
Deferred tax liabilities
Assessable temporary differences
-
-
Net deferred tax assets not recognised
19,160,524
15,702,364
The carried forward tax losses and temporary differences not recognised as deferred tax assets as at 30 June 2024 were
U$76,642,096 (30 June 2023: U$62,809,456) and US$Nil (30 June 2023:US$Nil) respectively.
In order to recoup carried forward losses in future periods, either the Continuity of Ownership Test (COT) or Same Business
Test must be passed. The majority of losses are carried forward at 30 June 2024 under COT.
Deferred tax assets which have not been recognised as an asset, will only be obtained if:
(i) the Group derives future assessable income of a nature and of an amount sufficient to enable the losses to be realised;
(ii) the Group continues to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Group in realising the losses.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
52 | P a g e
Note 4: Income tax (cont’d)
Accounting Policy: Income Tax
The income tax expense for the year is the tax payable on the current year's taxable income based on the national income tax
rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
between the tax base of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets are
recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or
taxable profit.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases of
investments in subsidiaries, associates and interests in joint ventures where the parent entity is able to control the timing of
the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances relating to amounts recognised directly in other comprehensive income and equity are also
recognised directly in other comprehensive income and equity, respectively.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
profitable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Cokal Limited and its wholly-owned Australian subsidiaries have formed a tax consolidated group. Cokal Limited is the head
entity in the tax consolidated Group. The entities in the tax consolidated group will be taxed as a single entity and deferred tax
assets and liabilities will be offset in these consolidated financial statements.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
53 | P a g e
Note 5: Auditor’s Remuneration
2024
US$
2023
US$
Audit services
Amounts paid/payable for audit or review of the
financial statements for the Group
Hall Chadwick
89,524
80,645
89,524
80,645
Note 6: Earnings per Share
2024
US$
2023
US$
Loss attributable to owners of Cokal Limited used to calculate basic and
diluted loss per share (USD)
(9,826,413)
(9,268,600)
Weighted average number of ordinary shares used as the denominator in
calculating basic loss per share
1,078,948,980
1,078,948,980
Adjustments for calculation of diluted earnings per share:
-
Options *
-
-
Weighted average number of ordinary shares and potential ordinary shares
used as the denominator in calculating diluted loss per share
1,078,948,980
1,078,948,980
Basic loss per share (US cents per share)
(0.91)
(0.86)
Diluted loss per share (US cents per share)
(0.91)
(0.86)
* Options are considered anti-dilutive as the Group is loss making.
Accounting Policy: Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to owners of Cokal Limited by the weighted
average number of ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares during the
period.
Diluted earnings per share
Earnings used to calculate diluted earnings per share are calculated by adjusting the amount used in determining basic earnings
per share by the after-tax effect of dividends and interest associated with dilutive potential ordinary shares. The weighted
average number of shares used is adjusted for the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
54 | P a g e
Note 7: Cash and Cash Equivalents
2024
US$
2023
US$
Cash and bank balances
1,518,525
1,485,173
Less: Short term deposits maturing after
three months and restricted bank balance
classified as investing activities**
(1,036,712)
(142,660)
Cash and cash equivalents
481,813
1,342,513
**Includes restricted deposits of US1,036,712 (2023: US$142,660) which can be used only after TBAR production commences.
Accounting Policy: Cash and cash equivalents
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and at bank, deposits
held at call with financial institutions, other short term, highly liquid investments with maturities of three months or less,
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Note 8: Subsidiaries
a) Interest in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 1.
Name of entity
Country of
Incorporation
Class of Shares
Percentage Owned
(%)*
2024
2023
Jack Doolan Capital Pty Ltd
Australia
Ordinary
100%
100%
Cokal Mozambique Pty Ltd
Australia
Ordinary
100%
100%
Cokal Holdings Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-AAK Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-AAM Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-BBM Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-BBP Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal Services Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal Karoo Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal Manda Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-West Kalimantan Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-BPR Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-TBAR Pte. Ltd
Singapore
Ordinary
100%
100%
Mining Logistics Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal-KED Pte. Ltd
Singapore
Ordinary
100%
100%
Cokal Resources Limited
Tanzania
Ordinary
100%
100%
PT Cokal
Indonesia
Ordinary
100%
100%
PT Bumi Kalimantan Logistik (BKL)
Indonesia
Ordinary
100%
100%
PT Anugerah Alam Katingan^ (AAK)
Indonesia
Ordinary
75%
75%
PT Bumi Barito Mineral^ (BBM)
Indonesia
Ordinary
60%
60%
PT Borneo Bara Prima ^ (BBP)
Indonesia
Ordinary
60%
60%
PT Tambang Benua Alam Raya# (TBAR)
Indonesia
Ordinary
75%
75%
PT Barito Samudera Nusantara (BSN)
Indonesia
Ordinary
100%
-
Cokal Karoo Limited#
Tanzania
Ordinary
100%
100%
Cokal Manda Limited#
Tanzania
Ordinary
100%
100%
* the proportion of ownership interest is equal to the proportion of voting power held.
^ Up to the reporting date, BBM has been financed by Cokal Limited. Per agreement, the right of non-controlling shareholders’ receiving a return is
established only when BBM repays the loan owing to Cokal Limited, approximating US$58m. At reporting date, no repayment of the loan has
occurred and therefore there is no right to a return for non-controlling interests.
# These entities are dormant entities. All capitalised expenditures for these entities has been impaired to $nil in prior periods. The fair value of the
underlying assets, liabilities and contingent liabilities at the acquisition date and 30 June 2024 are $nil.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
55 | P a g e
Note 8: Subsidiaries (cont’d)
b) Financial information of subsidiaries
The balances of non-controlling interests are not currently material at 30 June 2024 and 30 June 2023 as the right of non-
controlling shareholders’ receiving a return is established only when BBM repays the loan owing to the Cokal Limited,
approximating US$58m. At reporting date, no repayment of the loan has occurred and therefore there is no right to a return for
non-controlling interests.
Note 9: Inventories
2024
US$
2023
US$
Stores and consumables – at cost
78,396
102,650
Inventory – at cost
1,725,072
2,000,035
Provision
(108,311)
-
WIP – at cost
-
1,245,705
1,695,157
3,348,390
Accounting Policy: Inventories
Inventories of coal are physically measured or stated at the lower of cost and net realisable value.
Coal stocks comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate
proportion of variable and fixed overhead expenditure based on normal operating capacity. Costs are assigned to inventories
using the weighted average basis.
Stores cost comprises average cost of purchase price and associated charges.
Net realisable value is estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
56 | P a g e
Note 10: Property, Plant and Equipment
2024
US$
2023
US$
Land
At cost
1,649,313
1,649,313
1,649,313
1,649,313
Computer equipment
At cost
626,641
623,815
Accumulated depreciation
(602,484)
(587,693)
24,157
36,122
Plant and equipment
At cost
3,127,916
3,024,428
Accumulated depreciation
(1,120,243)
(848,782)
2,007,673
2,175,646
Motor Vehicles
At cost
223,312
282,210
Accumulated depreciation
(84,471)
(100,373)
138,841
181,837
Capital Works in Progress
At cost
11,442,609
7,554,718
Accumulated depreciation
-
-
11,442,609
7,554,718
Total property, plant and equipment
15,262,593
11,597,636
(a) Movements in carrying amounts
2024
Land
Computer
equipment
Furniture and
office
equipment
Motor
Vehicles
Capital Works in
Progress
Total
US$
US$
US$
US$
US$
US$
Balance at 1 July 2023
1,649,313
36,122
2,175,646
181,837
7,554,718
11,597,636
Additions
-
2,826
103,488
-
3,887,891
3,994,205
Disposals
-
-
-
-
-
-
Depreciation expense
-
(14,791)
(271,461)
(42,996)
-
(329,248)
Amount written off
-
-
-
-
-
-
Carrying amount at the
end year
1,649,313
24,157
2,007,673
138,841
11,442,609
15,262,593
2023
Land
Computer
equipment
Furniture and
office
equipment
Motor
Vehicles
Capital Works in
Progress
Total
US$
US$
US$
US$
US$
US$
Balance at 1 July 2022
1,420,153
36,765
178,618
429,948
2,223,725
4,289,209
Additions
229,160
13,309
2,266,079
-
5,330,993
7,839,541
Disposals
-
-
(77,905)
(181,478)
-
(259,383)
Depreciation expense
-
(13,952)
(191,146)
(66,633)
-
(271,731)
Amount written off
-
-
-
-
-
-
Carrying amount at the
end year
1,649,313
36,122
2,175,646
181,837
7,554,718
11,597,636
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
57 | P a g e
Note 10: Property, Plant and Equipment (cont’d)
Accounting Policy: Property, plant and equipment
Property, plant and equipment is measured at cost less depreciation and impairment losses.
The cost of property, plant and equipment constructed within the Group includes the cost of materials, direct labour,
borrowing costs and an appropriate portion of fixed and variable costs.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the consolidated entity and the cost of the item can
be measured reliably. All other repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation
The depreciable amount of property, plant and equipment is depreciated over their useful life to the Group commencing
from the time the asset is held ready for use.
The depreciation rates used for each class of assets are:
Class of Fixed Assets
Depreciation Rate
Land
nil
Computer Equipment
33.3% straight line
Plant and Equipment
10 – 33.3% straight line
Motor Vehicles
20% straight line
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic benefits are
expected from its use or disposal.
Gains and losses on disposal are determined by comparing proceeds with the carrying amount. The gains and losses are included
in the statement of comprehensive income.
Capital Work in Progress
Capital work in progress is projects of a capital nature which usually relates to the construction/installation of infrastructure.
Upon completion (when ready for use) capital work in progress is transferred to the relevant asset category. Capital work in
progress is not depreciated.
Note 11: Exploration and Evaluation Assets
2024
US$
2023
US$
Non-Current
Exploration and evaluation expenditure capitalised
- exploration and evaluation phases
1,606,585
1,606,585
Recoverability of the carrying amount of exploration and evaluation assets is dependent on the successful development and commercial
exploitation of coal, or alternatively, sale of the respective areas of interest.
(a) Movements in carrying amounts
Balance at the beginning of the year
1,606,585
1,622,854
Site related expenses during the year
-
-
Transfer to Mine under development
-
(16,269)
Carrying amount at the end of the year
1,606,585
1,606,585
The carrying amount of exploration and evaluation (E&E) assets at 30 June 2024 represents only the TBAR project. The value of
the exploration and evaluation expenditure carried forward in respect of the BBM Project has been capitalised on the balance
sheet as a Mine Under Development, as pre-production activities to gain access to mineral reserves have commenced and funding
is in place.
The ultimate recoupment of expenditure relating to the exploration and evaluation phase is dependent upon successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
58 | P a g e
Note 11: Exploration and Evaluation Assets (cont’d)
Accounting Policy: Exploration, evaluation and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest.
Such expenditures comprise net direct costs and an appropriate portion of related overhead expenditure but do not include
overheads or administration expenditure not having a specific nexus with a particular area of interest. The exploration and
evaluation expenditure is only carried forward as exploration or evaluation assets to the extent that they are expected to be
recouped through the successful development of the area or where activities in the area have not yet reached a stage which
permits reasonable assessment of the existence of economically recoverable reserves and active or significant operations in
relation to the area are continuing.
When technical feasibility and commercial viability of extracting a Coal Resource have been demonstrated then any capitalised
exploration and evaluation expenditure is reclassified as capitalised mine development. Prior to reclassification, capitalised
exploration and evaluation expense is assessed for impairment.
A regular review has been undertaken on each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest. Accumulated costs in relation to an abandoned area are written off/de-recognised in
full against profit in the period in which the decision to abandon the area is made.
Costs related to the acquisition of properties that contain Coal Resources are allocated separately to specific areas of interest.
These costs are capitalised until the viability of the area of interest is determined.
Note 12: Mines Under Development
2024
US$
2023
US$
Non-Current
Mines under Development
23,744,327
23,754,966
Movements in carrying amounts
Balance at the start of the year
23,754,966
23,746,613
Transferred from exploration and evaluation asset
-
16,269
Accumulated Amortisation
(10,639)
(7,916)
Carrying amount at the end of the period
23,744,327
23,754,966
Accounting Policy: Mines under Development
Amortisation calculated to write off the net cost of Mine development over the useful lives as follows:
Class of Assets
Depreciation Rate
Mine development
Proportion of actual production measured against mineable resources in the mine
area developed on which the expenses were incurred.
Mines under development include aggregate expenditure in relation to mine construction, mine development, exploration
and evaluation expenditure where development decisions have been made and acquired mineral interests.
Expenditure incurred in constructing a mine by, or on behalf of, the Group is accumulated separately for each area of interest
in which economically recoverable reserves and resources have been identified. This expenditure includes direct costs of
construction, drilling costs and removal of overburden to gain access to the ore, borrowing costs capitalised during
construction and an appropriate allocation of attributable overheads.
Mines under development are accumulated separately for each area of interest in which economically recoverable reserves
have been identified and a decision to develop has occurred. This expenditure includes all capitalised exploration and
evaluation expenditure in respect of the area of interest, direct costs of development, an appropriate allocation of
overheads and where applicable borrowing costs capitalised during development. When mining of the area of interest can
commence, the aggregated capitalised costs are classified under non-current assets as mines in production or an
appropriate class of property, plant and equipment.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
59 | P a g e
Note 12: Mines Under Development (cont’d)
Mines in production represent the aggregated exploration and evaluation expenditure and capitalised development costs in
respect of areas of interest in which mining is ready to or has commenced. Mine development costs are deferred until
commercial production commences, at which time they are amortised on a units-of-production basis over the ore reserves or
resources. Once production commences, further development expenditure is classified as part of the cost of production, unless
substantial future economic benefits can be established.
The stripping costs (the process of over burden removal) incurred before production commences (development stripping) are
capitalised as part of mine development expenditure and subsequently amortised.
The stripping costs incurred subsequent to commencement of production are referred to as production stripping. Production
stripping is generally considered to create two benefits, being either the production of inventory or improved access to the
coal to be mined in the future. Where the benefits are realised in the form of inventory produced in the period, the production
stripping costs are accounted for as part of the cost of producing those inventories. Where the benefits are realised in the form
of improved access to ore to be mined in the future, the costs are recognised as a non-current asset, referred to as a ‘stripping
activity asset’, if the following criteria are met:
a) Future economic benefits (being improved access to the ore body) are probable;
b) The component of the ore body for which access will be improved can be accurately identified; and
c) The costs associated with the improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged to profit or loss as operating costs as they are
incurred. When production commences, the accumulated costs for the relevant area of interest (mine development and
acquired properties) will be amortised over the life of the area according to the rate of depletion of the economically
recoverable reserves using a units of production method.
Mine rehabilitation costs will be incurred by the Group either while operating, or at the end of the operating life of, the Group’s
facilities and mine properties. The Group assesses its mine rehabilitation provision at each reporting date. The Group
recognises a rehabilitation provision where it has a legal and constructive obligation as a result of past events, and it is probable
that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation can
be made. The nature of these restoration activities includes: dismantling and removing structures; rehabilitating mines and
tailings dams; dismantling operating facilities; closing plant and waste sites; and restoring, reclaiming and revegetating affected
areas.
The obligation generally arises when the asset is installed or the ground/environment is disturbed at the mining operation’s
location. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the
carrying amount of the related mining assets to the extent that it was incurred as a result of the development/construction of
the mine. Any rehabilitation obligations that arise through the production of inventory are recognised as part of the related
inventory item. Additional disturbances which arise due to further development /construction at the mine are recognised as
additions or charges to the corresponding assets and rehabilitation liability when they occur. Costs related to restoration of
site damage (subsequent to start of commercial production) that is created on an ongoing basis during production are provided
for at their net present values and recognised in profit or loss as extraction progresses.
Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively by
recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, if the
initial estimate was originally recognised as part of an asset measured in accordance with AASB 116.
Any reduction in the rehabilitation liability and, therefore, any deduction from the asset to which it relates, may not exceed
the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to the statement of profit
or loss and other comprehensive income.
If the change in estimate results in an increase in the rehabilitation liability and, therefore, an addition to the carrying value
of the asset, the Group considers whether this is an indication of impairment of the asset as a whole, and if so, tests for
impairment. If, for mature mines, the estimate for the revised mine assets net of rehabilitation provisions exceeds the
recoverable value, then that portion of the increase is charged directly to expense.
Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current
market assessments and the risks specific to the liability. The periodic unwinding of the discount is recognised in the statement
of profit or loss and other comprehensive income as part of finance costs. For closed sites, changes to estimated costs are
recognised immediately in the statement of profit or loss and other comprehensive income.
The Group recognises neither the deferred tax asset in respect of the temporary difference on the decommissioning liability
nor the corresponding deferred tax liability in respect of the temporary difference on a decommissioning asset.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
60 | P a g e
Note 13: Other Assets
2024
US$
2023
US$
Current
Other receivable
38,918
10,117
Prepayments
847,345
689,167
886,263
699,284
Non-Current
Security deposits
976
976
Note 14: Accounts Payable and Others
2024
US$
2023
US$
Current
Sundry payables and accrued expenses
16,156,299
9,494,527
Revenue in advance
1,962,375
2,174,702
18,118,674
11,669,229
Non-Current
Commission payable
9,261,535
9,261,535
27,380,209
20,930,764
Accounting Policy: Accounts payable and others
Revenue in advance
BBM has entered into an agreement with PT Sumber Global Energy (“SGE”) to monetise near-term coal production. SGE
advances BBM a total of US$2.0M as consideration for Cokal appointing SGE as Exclusive Sales Agent for domestic Indonesian
coal sales whereby SGE will undertake the marketing and sales of 0.6Mt BBM coal sold into the Indonesian domestic market
for a period of 2 years from the date of first delivery of coal to SGE.
BBM will repay the US$2.0M to SGE through a reduction in the coal sales price over the term of the agreement. The repayment
schedule to SGE will be calculated by apportioning the US$2.0M consideration over the total tonnage of coal allocated to SGE
over the term of the Agreement, which will be deducted from the sales price (e.g. If BBM allocates 0.6Mt of coal to SGE, then
the US$2.0M in consideration will result in a US$3.33/t reduction in coal sales price for that tonnage.) The reduction in coal
sales price shall be adjusted in the final period of the Agreement to ensure full repayment of the US$2.0M consideration.
Commission payable
Loans owing by the Company were previously discharged and Cokal and each Cokal Group Company released from their
liability to make payment of $9,261,535 under the loan on terms including the following:
•
the royalty payable to Alpine under the Royalty Deed will be the greater of:
1.
USD 10,000 per month; and
2.
USD 2.00 per tonne of coal sold by BBM and TBAR on a monthly basis;
•
the maximum royalty payment of USD 40million payable under the Royalty Deed remains the same and will be
payable through the first 20 million tonnes of coal produced and sold by both BBM and TBAR; and
•
all other conditions stated in the Royalty Deed shall remain the same.
The fair value of the commission payable to Alpine has been determined using the extinguished value of borrowings, taking
into consideration the performance risk associated with future production levels.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
61 | P a g e
Note 15: Leases
2024
US$
2023
US$
a) Right of use assets – buildings and motor vehicles
Balance at beginning of year
624,952
89,735
Reclassification
(6,589)
-
Additional leases during the year
-
686,851
Amortisation
(362,766)
(151,634)
Balance at end of year
255,597
624,952
b) Lease liabilities
Current
247,019
286,610
Non current
8,066
227,245
255,085
513,855
Accounting Policy: Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use
asset and a corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that
are classified as short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases of low-value assets
are recognised as an operating expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The
lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group
uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
fixed lease payments less any lease incentives;
•
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
•
the amount expected to be payable by the lessee under residual value guarantees;
•
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
•
lease payments under extension options, if lessee is reasonably certain to exercise the options; and
•
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease
payments made at or before the commencement date, as well as any initial direct costs. The subsequent measurement of the
right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest. Where
a lease transfers ownership of the underlying asset, or the cost of the right-of-use asset reflects that the Group anticipates to
exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
For personal use only
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
ANNUAL REPORT 2024
62 | P a g e
Note 16: Borrowings
2024
US$
2023
US$
Current
BMA Group loan
2,000,000
2,000,000
Loans payable
3,247,992
60,406
Total Current
5,247,992
2,060,406
Non-Current
Loans payable
20,000,000
17,950,000
Total Non-Current
20,000,000
17,950,000
Total Borrowings
25,247,992
20,010,406
BMA Group loan
On 21 September 2018, Cokal signed a Key Principles of Agreement with PT Bara Mineral Asri (BMA Group) to develop and
operate PCI and Coking Coal operations at the BBM Project. Cokal received US$2.0 million loan from BMA Group to secure the
transaction, but the BMA Group failed to complete the other funding conditions set out in the Key Principles of Agreement
and has also failed to document the loan arrangement with the Group. Therefore, the Group has assessed the loan is repayable
on demand and has been disclosed at the face value of the amounts received. Repayment terms have been revised to US$ 5
per tonne payable over the first 200,000 mt sold and US$ 10 for the subsequent 100,000 mt.
Short Term Loan Facility
An additional US$2 million loan facility provided by ICT was executed on 7 February 2024. A facility fee of 20% per annum is
payable over 4 quarters at 5% per quarter. Both parties agreed to increase the loan facility by an additional US$1 million. As
at 30 June 2024, the full amount of the facility to a total of US$3 million has been drawn.
Non- Current Loans payable
On 14 July 2021 Cokal executed a US$20 million debt financing facility with International Commodity Trade (ICT) for
development of the Bumi Barito Mineral (BBM) Coking Cokal Project. As at 30 June 2024, US$20 million has been drawn.
A capital participation fee for the debt finance is linked to BBM mining operations and is calculated as follows:
-
Total Fee for debt finance of US$0.20 per BCM of overburden removal at BBM;
-
Total Fee for debt finance is capped at a maximum amount of 200,000,000 BCM of overburden work which equates to
a maximum amount of US$40m (this fee includes interest payable);
-
The fee is payable on a monthly basis, based on actual overburden removal with a minimum of 2,000,000 BCM of
overburden a month (US$400,000);
-
The fee payable must be paid within 8 years and 4 months from the first drawdown date.
The capital participation fee has been incurred from when amounts were drawn down under the facility, totalling US$4,800,000
for the period to 30 June 2024.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
Note 17: Issued Capital
ANNUAL REPORT 2024
63 | P a g e
(a) Ordinary shares
2024
US$
2023
US$
1,078,948,980 fully paid ordinary shares (30
June 2023: 1,078,948,980)
106,375,841
106,375,841
Movement in Issued Capital
2024
US$
2023
US$
At the beginning of the year
106,375,841
95,721,944
Shares issued during the year
Share issued on exercise of options
-
83,857
Shares issued in placement
-
10,570,040
At reporting date
106,375,841
106,375,841
Movement in Issue Capital
2024
Number
2023
Number
(a) Ordinary shares
At the beginning of the year
1,078,948,980
938,948,980
Shares issued during the year
Share issued on exercise of options
-
40,000,000
Shares issued in placement
-
100,000,000
At reporting date
1,078,948,980
1,078,948,980
(b) Options
Nil options on issue at 30 June 2024.
(c) Capital Risk Management
Management controls the capital of the Group in order to provide capital growth to shareholders and ensure the Group
can fund its operations and continue as a going concern.
The Group capital comprises equity as shown in the Statement of Financial Position.
Management effectively manages the Group capital by assessing the Group financial risks and adjusting its capital
structure in response to changes in these risks and the market. These responses include raising sufficient equity capital
when required.
There have been no changes in the strategy adopted by management to control the capital of the Group since the prior
year.
Accounting Policy: Issued capital
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares or options are shown
as a deduction from the equity proceeds, net of any income tax benefit.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
Note 18: Reserves
ANNUAL REPORT 2024
64 | P a g e
2024
2023
US$
US$
Share based payments option reserve
Opening balance
7,930,246
7,930,246
Movement
-
-
Closing balance
7,930,246
7,930,246
Translation reserve
Opening balance
(1,417,999)
(1,417,999)
Movement
-
-
Closing balance
(1,417,999)
(1,417,999)
6,512,247
6,512,247
Share Based Payment Option Reserve
The option reserve records the value of options issued as part of capital raisings, and consultant services as well as expenses relating
to director, executive and employee share options.
Foreign Currency Translation Reserve
The foreign currency translation reserve represents net exchange differences arising from the translation as a result of foreign
operations.
Translation reserve represents the net exchange differences arising from the translation as a result of change in presentation
currency to US$ from AU$ and translation of the AUD entity to USD.
Accounting Policy: Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at
the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange ruling at the reporting date. The resulted gain or loss on retranslation is included in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was determined.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
65 | P a g e
Note 19: Parent Entity Information
The consolidated financial statements incorporate the assets, liabilities and results of the parent entity in accordance with the
accounting policy described in Note 1.
Parent Entity
2024
2023
US$
US$
Current assets
71,796
364,833
Non-current assets
22,882,703
23,867,431
Total assets
22,954,499
24,232,264
Current liabilities
5,707,114
6,261,989
Non-current liabilities
8,066
-
Total liabilities
5,715,180
6,261,989
Net assets
17,239,319
17,970,275
Issued capital
106,375,841
106,375,841
Share based payment reserves
7,930,246
7,930,246
Currency translation reserve
(3,517,011)
(3,517,011)
Accumulated losses
(93,549,757)
(92,818,801)
Total shareholder’s equity
17,239,319
17,970,275
Loss for the year
(730,956)
(730,956)
Total comprehensive loss for the year
(730,956)
(730,956)
Guarantees
The parent entity has set up wholly owned special purpose entities (SPEs) in Singapore to hold ownership interests in
Indonesia and provided an undertaking to financially support these SPEs to meet their liabilities as and when they fall due.
Cokal Limited has provided a corporate guarantee for payment of the International Commodity Trade (ICT) Facility (refer
note 16).
Contractual Commitments
There were no contractual commitments for the acquisition of property, plant and equipment entered into by the parent
entity at 30 June 2024 (2023: US$Nil).
Contingent liabilities
The parent entity has no contingent liabilities.
Capital commitments
The parent entity has no capital commitments.
Impairment assessment
At 30 June 2024, Cokal Limited, the parent entity, performed an impairment assessment of its investments in subsidiaries
and non-current receivables from subsidiaries. As a result of this assessment, the carrying amount of these assets was
impaired by US$Nil (2023: US$Nil).
Accounting Policy: Parent entity financial information
The financial information for the parent entity, Cokal Limited, included in this note 18 has been prepared on the same
basis as the consolidated financial statements, except investments in subsidiaries and joint venture operations are
accounted for at cost, less provision for impairment.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
66 | P a g e
Note 20: Commitments
Rexline Coal Handling System
Rexline Engineering is constructing a Coal Handling System at Batu Tuhup. The total cost of the project is US$3.77 million, of
which US$2.14 million had been completed by 30 June 2024. The remaining balance will be completed within the next 6
months.
Note 21: Contingent Liabilities
The Group has a number of contingent liabilities in respect of deferred purchase consideration for the acquisition of its
mining and exploration tenements.
BBP Vendor Payment
At 30 June 2024, the Group’s contingent liabilities include US$7.95m (30 June 2023: US$7.95m) in respect of its PT Borneo
Bara Prima (BBP) tenement. The amount is payable on the achievement of certain milestones, including but not limited to
the establishment of certain JORC Inferred Coal Resources and the issuance of production operation IUPs (licences) and
production forestry permits.
BBM Vendor Payment
As part of the Group’s acquisition of its interest in the BBM project, it was agreed an amount of US$10.0 million would be
payable within 30 days of the issue of the Production/ Operations IUP (mining license granted under the Indonesian New
Mining Law). The Company subsequently entered into an agreement with the vendor of BBM for these vendor payments due
on commencement of production. It has now been agreed that an amount of US$10.5 million will be paid via:
1.
US$200,000 within 30 days of signing the agreement;
2.
During the first and second year of coal sales to a third party, monthly at a rate of US$2 per tonne of coal sold;
3.
From the third year of coal sales to a third party, monthly at a rate of US$3 per tonne of coal sold.
Payments under items 2 and 3 are to total US$10.3 million.
Alpine Invest Holdings Ltd Commitment
During May 2020 the Company consented to the assignment of loans payable to a third party (Loans) to Alpine Invest Holdings
Ltd (Alpine). It was agreed as a term of the consent to the assignment that immediately upon transfer of the Loans to Alpine,
that the Loans are deemed released and Alpine discharges and releases Cokal and each Cokal Group Company from their liability
to make payment of the Loans totalling $9,261,535 (as recognised as a liability, refer note 14) on the following terms:
•
the royalty payable to Alpine under the Royalty Deed will be the greater of:
1.
USD 10,000 per month; and
2.
USD 2.00 per tonne of coal sold by BBM and TBAR on a monthly basis;
•
the maximum royalty payment of USD 40million payable under the Royalty Deed remains the same and will be payable
through the first 20 million tonnes of coal produced and sold by both BBM and TBAR; and
•
all other conditions stated in the Royalty Deed shall remain the same.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
67 | P a g e
Note 21: Contingent Liabilities (cont’d)
International Commodity Trade (ICT) Facility
Cokal Limited has provided a corporate guarantee for payment of the International Commodity Trade (ICT) Facility (refer note 16).
The Corporate Guarantee Agreement does not require registered charges over the assets of Cokal, however Cokal guarantees
ICT punctual performance by BBM of all obligations under the Capital Participation Agreement and provides that should BBM not
pay any amount as required under the Corporate Guarantee, including but not limited to the Guarantee Amount (being the
amounts owing under the Capital Participation Agreement), the Guarantor (Cokal) will immediately on demand pay that amount
not paid.
The Corporate Guarantee provided by Cokal may require the sale of the assets of BBM and/or Cokal to meet all obligations under
the Capital Participation Agreement. This is an unsecured corporate guarantee which could force the sale of the BBM Project, or
any other asset of the group including TBAR, BBP and/or AAK Projects to meet payment obligations.
International Coal Marketing Agreement
A fee of 6% of the coal sale value is payable to ICT by BBM in consideration for the marketing activities and financing assistance
under the International Coal Marketing Agreement.
Note 22: Operating Segments
Australia
Indonesia
Singapore
Total
US$
US$
US$
US$
Segment performance for the year ended 30 June 2024
Revenue
-
3,674,906
-
3,674,906
Interest revenue
18,762
2,575
-
21,337
Total segment income
18,762
3,677,481
-
3,696,243
Depreciation expenses
(10,422)
(318,826)
-
(329,248)
Amortisation expenses
(77,331)
(296,074)
-
(373,405)
Finance costs
-
(168,760)
-
(168,760)
Capital participation fee
-
(4,800,000)
-
(4,800,000)
Other expenses
(245,875)
(6,873,994)
(731,374)
(7,851,243)
Total segment expenses
(333,628)
(12,457,654)
(731,374)
(13,522,656)
Segment net profit /(loss) before tax
(314,866)
(8,780,173)
(731,374)
(9,826,413)
Segment assets and liabilities as at 30 June 2024
Property, plant and equipment
4,608
15,257,985
-
15,262,593
Exploration and evaluation assets
-
1,606,585
-
1,606,585
Mines under development
-
23,744,327
-
23,744,327
Other segment assets
48,864
4,295,297
12,357
4,356,518
Total segment assets
53,472
44,904,194
12,357
44,970,023
Total segment liabilities
(9,667,887)
(43,771,342)
-
(53,439,229)
Capital expenditure for the year ended 30 June 2024
Property, plant and equipment
-
3,994,205
-
3,994,205
Exploration and evaluation assets
-
-
-
-
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
68 | P a g e
Note 22: Operating Segments (cont’d)
Australia
Indonesia
Singapore
Total
US$
US$
US$
US$
Segment performance for the year ended 30 June 2023
Other income
14,240
2,133
-
16,373
Total segment income
14,240
2,133
-
16,373
Depreciation expenses
(4,485)
(267,246)
-
(271,731)
Amortisation expenses
(40,093)
(119,457)
-
(159,550)
Finance costs
(3,100)
-
-
(3,100)
Other expenses
(974,067)
(8,284,895)
408,370
(8,850,592)
Total segment expenses
(1,021,745)
(8,671,598)
408,370
(9,284,973)
Segment net profit /(loss) before tax
(1,007,505)
(8,669,465)
408,370
(9,268,600)
Segment assets and liabilities as at 30 June 2023
Property, plant and equipment
47,019
11,550,617
-
11,597,636
Exploration and evaluation assets
-
1,606,585
-
1,606,585
Mines under development
-
23,754,966
-
23,754,966
Other segment assets
198,252
4,879,136
1,081,387
6,158,775
Total segment assets
245,271
41,791,304
1,081,387
43,117,962
Total segment liabilities
(10,284,925)
(31,475,830)
-
(41,760,755)
Capital expenditure for the year ended 30 June 2023
Property, plant and equipment
-
9,085,246
-
9,085,246
Exploration and evaluation assets
-
-
-
-
*Inter segment expense relating to the income is eliminated in Indonesia’s exploration and evaluation assets.
Accounting Policy: Determination and presentation of operating segments
AASB 8 Operating segments requires a management approach under which segment information is presented on the same
basis as that used for internal reporting purposes. Operating segments are reported in a manner that is consistent with the
internal reporting to the chief operating decision maker (CODM), which has been identified as the Board of Directors.
Operating segments that meet the qualification criteria as prescribed by AASB 8 are reported separately. However, an
operating segment that does not meet the qualification criteria is still reported separately when information about the
segment would be useful to users of the financial statements.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
69 | P a g e
Note 23: Cashflow Information
Note
2024
US$
2023
US$
(a) Reconciliation of loss after income tax to net cash flow used in operating activities
Loss for the year
(9,826,413)
(9,268,600)
Non-cash items:
- Depreciation
10
329,248
271,731
- Amortisation of ROU assets
15
362,766
151,634
- Amortisation of mines under development
12
10,639
7,916
Change in operating assets and liabilities:
- Decrease / (Increase) in provisions
250,214
305,730
- Decrease / (Increase) in other current assets
(158,177)
(584,122)
- Decrease / (Increase) in other receivables
(28,801)
-
- Decrease / (Increase) in inventories
1,653,233
(3,288,318)
- (Decrease)/Increase in revenue in advance
(212,327)
1,849,702
- (Decrease) / Increase in accounts payables
6,661,772
4,767,430
Net cash flow used in operating activities
(957,846)
(5,786,897)
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
70 | P a g e
Note 24: Share-based Payments
The following share-based payment arrangements existed at 30 June 2024.
(a) Share-based payments to directors, executives, employees and suppliers
During the year ended 30 June 2024, Nil shares and Nil options were issued to directors, executives and employees of the
Group.
During the year ended 30 June 2023, Nil options were issued to directors and Nil options were issued to executives and
employees of the Group.
At 30 June 2024, there were Nil unissued ordinary shares under options.
No option holder has any right under the options to participate in any other share issue of Cokal Limited or any other entity.
All options issued by Cokal Limited entitle the holder to one ordinary share in Cokal Limited for each option exercised. The
options were granted for nil consideration. Once vested, options can be exercised at any time up to the expiry date.
The range of exercise prices for options outstanding at 30 June 2024 was nil. (30 June 2023: Nil) and weighted average
remaining contractual life is Nil. (30 June 2023: Nil).
30 June 2024
30 June 2023
No. of options
Weighted average
exercise price
No. of options
Weighted average
exercise price
US$
US$
Outstanding at beginning of period
-
-
40,000,000
0.02
Granted
-
-
-
-
Forfeited/Cancelled
-
-
-
-
Exercised
-
-
(40,000,000)
(0.02)
Expired
-
-
-
-
Outstanding at period-end
-
-
-
-
Exercisable at period-end
-
-
-
-
Shares issued on exercise of an option rank equally with all other ordinary shares then on issue.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
71 | P a g e
Note 24: Share-based Payments (cont’d)
Accounting Policy: Share-based payment
The Group provides benefits to employees (including directors) and suppliers (including financiers and consultants) in the form
of share-based payment transactions, whereby employees or suppliers render/provide services in exchange for shares or
options over shares (equity-settled transactions).
The fair value of options granted to employees is recognised as an employee benefit expense with a corresponding increase
in equity (share-based payment option reserve). The fair value of options granted to financiers is recognised as finance cost
with a corresponding increase in equity (share-based payment option reserve). Fair value of shares issued to employees and
consultants are recognised as employee benefits and consultancy expenses respectively with a corresponding increase in
share capital. The fair value is measured at grant date and recognised over the period during which the employees/suppliers
become unconditionally entitled to the options. Fair value is determined by an independent valuer using a Black-Scholes
option pricing model. In determining fair value, no account is taken of any performance conditions other than those related
to the share price of Cokal Limited (market conditions).
The cumulative expense recognised between grant date and vesting date is adjusted to reflect the directors’ best estimate of
the number of options that will ultimately vest because of internal conditions of the options, such as the employees having to
remain with the Group until vesting date, or such that employees are required to meet internal performance targets. There
are no conditions associated with the options issued to the financiers. No expense is recognised for options that do not
ultimately vest because internal conditions were not met. An expense is still recognised for options that do not ultimately vest
because a market condition was not met.
At each subsequent reporting date until vesting the cumulative charge to the statement of comprehensive income is the
product of:
- The grant date fair value of the award;
- The current best estimate of the number of awards that will vest, taking into account such factors as the likelihood of
employees turnover during the vesting period and the likelihood of non-market performance conditions being met; and
- The expired portion of the vesting period.
The charge to the statement of comprehensive income for the period is the cumulative amount as calculated above less the
amounts already charged in previous periods. There is a corresponding entry to equity.
Where the terms of options are modified, the expense continues to be recognised from grant date to vesting date as if the
terms had never been changed. In addition, at the date of the modification, a further expense is recognised for any increase
in fair value of the transaction as a result of the change.
Where options are cancelled, they are treated as if vesting occurred on cancellation and any unrecognised expenses are taken
immediately to profit or loss. However, if new options are substituted for the cancelled options and designated as a
replacement on grant date, the combined impact of the cancellation and replacement options are treated as if they were a
modification.
The dilution effect, if any, of outstanding options is reflected as additional share dilutions in the computation of diluted
earnings per share.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
72 | P a g e
Note 25: Related Party Disclosure
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
(a) Parent entity
The parent entity and ultimate controlling entity is Cokal Limited, which is incorporated in Australia.
(b) Subsidiaries
Interests and transactions in subsidiaries are disclosed in Note 8.
(c) Key management personnel (KMP) compensation
The KMP compensation for the year ended is set out below:
2024
US$
2023
US$
Short-term employee benefits
224,332
233,008
Post-employment benefits
955
987
Termination benefits
-
-
Share-based payments
-
-
225,287
233,995
Note 26: Financial Risk Management
(a) General objectives, policies and processes
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This
note describes the Group objectives, policies and processes for managing those risks and the methods used to measure
them. Further quantitative information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated
in this note. The Group’s financial instruments consist mainly of deposits with banks, accounts receivable, security
deposits, interest bearing loans and accounts payable.
The Board has overall responsibility for the determination of the Group’s financial risk management objectives and policies
and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes
that ensure the effective implementation of the objectives and policies to the Group’s finance function. The Group’s
financial risk management policies and objectives are therefore designed to minimise the potential impacts of these risks
on the results of the Group where such impacts may be material.
The overall objective of the Board is to set policies that seek to reduce financial risk as far as possible without unduly
affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below.
(b) Credit risk
Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the Group
incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing to the Group. The Group’s
objective is to minimise the risk of loss from credit risk exposure.
The Group’s maximum exposure to credit risk at the end of the reporting period, without taking into account the value of
any collateral or other security, in the event other parties fail to perform their obligations under financial instruments in
relation to each class of recognised financial asset at reporting date, is as follows:
Note
2024
2023
US$
US$
Cash and bank balances
7
481,813
1,342,513
Receivables
13
38,918
10,117
Security deposits
7
1,036,712
142,660
Total
1,557,443
1,495,290
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
73 | P a g e
Note 26: Financial Risk Management (cont’d)
(b) Credit Risk (cont’d)
The Group does not have any material credit risk exposure to any single debtor or Group of debtors under financial instruments
entered into by the Group. No receivables balances were past due or impaired at period end. The credit quality of receivables
that are neither past due nor impaired is good.
(c) Liquidity Risk
Liquidity risk is the risk that the Group may encounter difficulties raising funds to meet financial obligations as they fall due.
The objective of managing liquidity risk is to ensure, as far as possible, that the Group will always have sufficient liquidity to
meets its liabilities when they fall due, under both normal and stressed conditions
Liquidity risk is reviewed regularly by the Board and the Audit Committee. Regular financial updates are received by the Board,
including financial forecasts of expenditure. The Board maintains a standing item in its Board meetings relating to the Group’s
funding with discussion and updates of various options and progression of funding provided regularly.
Carrying Amount
Contractual
Cash flows
<6 months
6 – 12 months
1 – 3 years
>3 years
US$
US$
US$
US$
US$
US$
MATURITY ANALYSIS– 30 June 2024
Financial Liabilities
Accounts payable
27,380,209
27,380,209
16,531,299
375,000
1,212,375
9,261,535
Leases
255,085
255,085
161,740
85,279
8,066
-
Borrowings
25,247,992
25,247,992
884,815
3,694,879
668,298
20,000,000
Total
52,883,286
52,883,286
17,577,854
4,155,158
1,888,739
29,261,535
Carrying Amount
Contractual
Cash flows
<6 months
6 – 12 months
1 – 3 years
>3 years
US$
US$
US$
US$
US$
US$
MATURITY ANALYSIS– 30 June 2023
Financial Liabilities
Accounts payable
20,930,764
20,930,764
10,275,623
1,156,521
5,751,691
3,746,929
Leases
513,855
513,855
150,443
136,167
227,245
-
Borrowings
20,010,406
20,010,406
613,146
780,000
667,260
17,950,000
Total
41,455,025
41,455,025
11,039,212
2,072,688
6,646,196
21,696,929
(d) Market Risk
Market risk arises from the use of interest bearing, tradable and foreign currency financial instruments. It is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate
risk), foreign exchange rates (currency risk) or other market factors (other price risk). The entity does not have any material
exposure to market risk other than as set out below.
(i) Interest rate risk
Interest rate risk arises principally from cash and cash equivalents. The objective of interest rate risk management is to
manage and control interest rate risk exposures within acceptable parameters while optimising the return.
Interest rate risk is managed with fixed rate debt. For further details on interest rate risk refer to the tables below:
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
74 | P a g e
Note 26: Financial Risk Management (cont’d)
(i) Interest rate risk (cont’d)
2024
Interest bearing -
floating interest
rate
Interest bearing - fixed
interest rate
Non-interest
bearing
Total carrying
amount
Weighted
average
effective
interest rate
US$
US$
US$
US$
%
Financial assets
Cash and bank balances
481,813
-
-
481,813
-
Receivables
-
-
38,918
38,918
-
Security deposits
-
-
1,036,712
1,036,712
-
Total financial assets
481,813
-
1,075,630
1,557,443
-
Financial liabilities
Accounts payable
-
-
27,380,209
27,380,209
-
Leases
-
255,085
-
255,085
-
Borrowings
-
23,247,992
2,000,000
25,247,992
-
Total financial liabilities
-
255,085
52,628,201
52,883,286
-
2023
Interest bearing -
floating interest
rate
Interest bearing - fixed
interest rate
Non-interest
bearing
Total carrying
amount
Weighted
average
effective
interest rate
US$
US$
US$
US$
%
Financial assets
Cash and bank balances
1,342,513
-
-
1,342,513
-
Receivables
-
-
10,117
10,117
-
Security deposits
-
-
142,660
142,660
-
Total financial assets
1,342,513
-
152,777
1,495,290
-
Financial liabilities
Accounts payable
-
-
20,930,764
20,930,764
-
Leases
-
513,855
-
513,855
-
Borrowings
-
-
20,010,406
20,010,406
-
Total financial liabilities
-
513,855
40,941,170
41,455,025
-
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk. This sensitivity demonstrates
the effect on the current period results and equity which could result from a change in these risks.
The effect on post tax profit and equity as a result of changes in the interest rate for floating interest rate instruments, with
all other variables held constant, would be as follows:
Carrying Amount
(interest bearing)
Increase in interest rate
by 0.5%
Decrease in interest
rate by 0.5%
US$
US$
US$
2024
Cash and cash equivalents
481,813
2,409
(2,409)
Total effect on post tax profit
-
2,409
(2,409)
2023
Cash and cash equivalents
1,342,513
6,712
(6,712)
Total effect on post tax profit
-
6,712
(6,712)
(ii) Currency risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due
to movements in foreign exchange rates of currencies in which the Group hold financial instruments which are other than the
US$ functional currency of the Group.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
75 | P a g e
Note 26: Financial Risk Management (cont’d)
(ii) Currency risk (cont’d)
The Group is exposed to currency risk on its cash and cash equivalents held (in AUD and Indonesian Rupiah) in Indonesia
and Australia as well as on purchases made from suppliers in Indonesia and Australia.
The Group’s exposure to foreign currency risk and the effect on post tax profit as a result of changes in foreign currency
rates, with all other variables held constant, are as follows:
AUD
SGD
Indonesian
Rupiah
USD
Total
US$
US$
US$
US$
US$
2024
Cash and bank balances
2,156
2,925
468,639
8,093
481,813
Accounts payable and others
(337,279)
-
(17,781,395)
(9,261,535)
(27,380,209)
Borrowings
-
-
-
(25,247,992)
(25,247,992)
Net exposure
(335,123)
2,925
(17,312,756)
(34,501,434)
(52,146,388)
Effect on post profit:
Increase by 10%
(368,635)
3,218
(19,044,032)
-
(19,409,449)
Decrease by 10%
(301,611)
2,633
(15,581,480)
-
(15,880,458)
2023
Cash and bank balances
97,785
1,081,387
163,341
-
1,342,513
Accounts payable and others
(790,643)
(100,000)
(8,603,884)
(11,436,237)
(20,930,764)
Borrowings
(60,406)
-
-
(19,950,000)
(20,010,406)
Net exposure
(753,264)
981,387
(8,440,543)
(31,386,237)
(39,598,657)
Effect on post profit:
Increase by 10%
(828,590)
1,079,526
(9,284,597)
-
(9,033,661)
Decrease by 10%
(677,938)
883,248
(7,596,489)
-
(7,391,179)
Accounting Policy: Financial Instruments
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Recognition and Initial Measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics
and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified
and measured at amortised cost it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on
the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The
Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash
flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial
assets, or both.
Subsequent Measurement of financial assets
Financial assets at amortised cost (debt instruments) is the most relevant to the Group. The Group measures financial assets
at amortised cost if both of the following conditions are met:
•
The financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
76 | P a g e
Note 26: Financial Risk Management (cont’d)
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to
impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s consolidated statement of financial position) when the rights to receive cash
flows from the asset have expired or the Group has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;
and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Financial liabilities
A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or
financial liabilities under unfavourable conditions.
Recognition and Initial Measurement of financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings or as payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables,
loans and borrowings including bank overdrafts, and derivative financial instruments.
Subsequent Measurement of financial liabilities
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.
For personal use only
Notes to the Consolidated Financial Statements for
the year ended 30 June 2024
ANNUAL REPORT 2024
77 | P a g e
Note 27: Significant Events after the Reporting Date
No matters or circumstances have arisen since the end of the year which significantly affected or could significantly affect the
operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years, except as
follows:
•
Cokal has signed a binding term-sheet with PT Petrosea TBK (“Petrosea”), a major Indonesian mining services
company, to facilitate the near-term ramp-up of production from Cokal’s Bumi Barito Mineral (“BBM”) metallurgical
coal mine. The term sheet enables Cokal to expand operations and increase production at the BBM mine, with
Petrosea’s support to ensure efficient and sustainable coal production and the readiness for production expansion,
achieved by extending payment terms for mine service providers (such as mine contractors, fuel and blasting) by an
additional 120 days.
•
Cokal has signed a binding agreement with mining contractor PT Cipta Bersama Indonesia (“CBI”) to develop an
underground mining operation at Pit 1 of the BBM Metallurgical Coal Mine, to produce a PCI coal product within 18
months, at zero cost to Cokal. This strategic Agreement represents a significant windfall for Cokal, as ther were no
plans to develop underground operations at BBM Pit 1 within the foreseeable future, given capital constraints and a
high level of requisite technical expertise.
For personal use only
ANNUAL REPORT 2024
78 | P a g e
Consolidated Entity Disclosure Statement
Set out below is relevant information relating to entities that are consolidated in the consolidated financial statements at the end
of the financial year as required by the Corporations Act 2001 (s.295 (3A) (a)).
As at 30 June 2024
Body Corporates
Tax residency
Entity name
Entity type
Place formed or
incorporated
% of
share
capital
held
Australian or
foreign
Foreign
jurisdiction
Cokal Limited
Body corporate
Australia
N/A
Australian(i)
N/A
Jack Doolan Capital Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Cokal Mozambique Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Cokal Holdings Pte.Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal – AAK Pte.Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal – AAM Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-BBM Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-BBP Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal Services Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal Karoo Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal Manda Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-West Kalimantan Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-BPR Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-TBAR Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Mining Logistics Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal-KED Pte. Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Cokal Resources Limited
Body corporate
Tanzania
100%
Foreign
Tanzania
PT Cokal
Body corporate
Indonesia
100%
Foreign
Indonesia
PT Bumi Kalimantan Logistik (BKL)
Body corporate
Indonesia
100%
Foreign
Indonesia
PT Anugerah Alam Katingan (AAK)
Body corporate
Indonesia
75%
Foreign
Indonesia
PT Bumi Barito Mineral(BBM)
Body corporate
Indonesia
60%
Foreign
Indonesia
PT Borneo Bara Prima (BBP)
Body corporate
Indonesia
60%
Foreign
Indonesia
PT Tambang Benua Alam Raya
(TBAR)
Body corporate
Indonesia
75%
Foreign
Indonesia
PT Barito Samudera Nusantara
(BSN)
Body corporate
Indonesia
100%
Foreign
Indonesia
Cokal Karoo Limited
Body corporate
Tanzania
100%
Foreign
Tanzania
Cokal Manda Limited
Body corporate
Tanzania
100%
Foreign
Tanzania
Note:
Not mandatory: (i) This entity is part of a tax- consolidated group under Australian taxation law, for which Cokal Limited is
the head entity
Key assumptions and judgements
Determination of Tax Residency
Section 295(3A) of the Corporations Acts 2001 required that the tax residency of each entity which is included in the
Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident,
“Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency
involves judgement as the determination of tax residency is highly fact dependent and there are currently several different
interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
-
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the
Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
-
Foreign tax residency
The consolidated entity has applied current legislation and where available judicial precedent in the determination
of foreign tax residency. Where necessary, the consolidated entity has used independent tax advisers in foreign
jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been
complied with.
For personal use only
ANNUAL REPORT 2024
79 | P a g e
Declaration by Directors
The directors of the Group declare that:
1.
The financial statements, comprising the statement of comprehensive income, statement of financial position, statement
of cash flows, statement of changes in equity, and accompanying notes, are in accordance with the Corporations Act 2001
and:
(a) comply with Australian Accounting Standards and the Corporations Regulations 2001;
(b) give a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the year
ended on that date; and
(c) the information disclosed in the attached consolidated entity disclosure statement is true and correct.
2.
The Group has included in note 1 to the financial statements explicit and unreserved statement of compliance with
International Financial Reporting Standards.
3.
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
4.
The remuneration disclosures included in pages 32 to 36 of the directors’ report (as part of audited Remuneration Report)
for the year ended 30 June 2024, comply with section 300A of the Corporations Act 2001.
5.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is signed in accordance with a resolution of the directors.
Cokal Limited
Domenic Martino
Chairman
Sydney
30 September 2024
For personal use only
For personal use only
For personal use only
For personal use only
For personal use only
For personal use only
ANNUAL REPORT 2024
85 | P a g e
Shareholder Information
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this report is as follows.
The information is current as at 5 September 2024
(a)
Distribution of Ordinary Shares
The number of holders, by size of holding, in each class of security is:
Ordinary shares
Number of
holders
Number of shares
1 – 1,000
358
242,263
1,001 – 5,000
174
540,552
5,001 – 10,000
328
2,839,423
10,001 – 100,000
667
27,002,822
100,001 and over
533
1,048,323,920
Total
2,060
1,078,948,980
(b)
Marketable Parcels
The number of shareholders holding less than a marketable parcel (a total of 1,014,319 ordinary shares) is 572 on a share price of
AU$0.081.
(c)
Substantial shareholders
Substantial shareholders as shown in substantial shareholder notices received by Cokal are:
Name of Shareholder:
Ordinary Shares:
AMR Investment Ptd Ltd
222,141,719
The Company notes that, as at 5 September 2024, the following shareholders hold substantial shareholdings (>= 5.0%) in Cokal:
Name of Shareholder:
Ordinary Shares:
% of total shares:
BNP Paribas Nominees Pty Ltd
103,452,289
9.59%
Citicorp Nominees Pty Limited
54,178,126
5.02%
(d)
Voting rights
All ordinary shares carry one vote per share without restriction.
Options do not carry voting rights.
For personal use only
Shareholder Information
ANNUAL REPORT 2024
86 | P a g e
Twenty Largest Holders
The names of the twenty largest holders, in each class of quoted security (ordinary shares) are:
Number of shares
% of total shares
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
259,137,787
24.02%
2
BNP PARIBAS NOMINEES PTY LTD
103,452,289
9.59%
3
54,178,126
5.02%
4
CITICORP NOMINEES PTY LIMITED
44,869,349
4.16%
5
BNP PARIBAS NOMS PTY LTD
31,250,000
2.90%
6
"LATIMORE FAMILY PTY LTD
17,500,000
1.62%
7
15,709,013
1.46%
8
MRS LAURA LYNCH
15,057,360
1.40%
9
TEKNIKS PUBLICATIONS PTY LIMITED
14,488,512
1.34%
10
14,450,823
1.34%
11
GEBRUN PTY LTD
14,000,000
1.30%
12
12,631,200
1.17%
13
BNP PARIBAS NOMINEES PTY LTD
12,512,502
1.16%
14
10,349,266
0.96%
15
RICHARD BULMAN CONSULTING PTY LTD
10,000,000
0.93%
16
9,502,302
0.88%
17
DANELMA PTY LTD
8,863,830
0.82%
18
8,594,748
0.80%
19
XIN HUA PTY LTD
7,021,856
0.65%
20
6,750,800
0.63%
Top 20
670,319,763
62.13%
Total
1,078,948,980
100.00%
(e)
Restricted securities
The Group currently has no restricted securities on issue.
(f)
On-market buy-back
There is not a current on-market buy-back in place.
(g)
Business Objectives
The consolidated entity has used its cash and assets that are readily convertible to cash in a way consistent with its business
objectives.
For personal use only
ANNUAL REPORT 2024
87 | P a g e
Interests in Tenements and Projects
Cokal Limited had the following interests in projects as at 30 June 2024:
Indonesia
LOCATION
LICENCE
NAME
TENEMENT
NUMBER
HOLDER
OWNERSHIP
STATUS
2024
2023
Central Province,
Kalimantan,
Indonesia
Bumi Barito Mineral (BBM)
188.45/149/2013
PT Bumi Barito Mineral
60%
60%
Granted
Tambang Benua Alam Raya
(TBAR)
570/25/DESDM-
IUPEKS/II/DPMTSP-
2020
PT Tambang Benua
Alam Raya
75%
75%
Granted
Borneo Bara Prima (BBP)
188.45/570/2014
PT Borneo Bara Prima
60%
60%
Granted
Anugerah Alam Katingan
(AAK)
41/DPE/III/VI/2011
PT Anugerah Alam
Katingan
75%
75%
Granted
For personal use only