ABN 49 119 057 457
for the Year Ended
30 June 2022
Cover Photo: Cascata Prospect - Altered amphibolite with epidote (green) and oxidised sulphide (rust colour).
Table of Contents
Highlights for the Year to 30 June 2022
Corporate Directory
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information for Listed Public Companies
Tenement Schedule
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9
10
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28
29
30
31
32
33
46
47
51
53
Ryberg field area
2
Looking east over Miki fjord
Höskuldur Jónsson, Operations Manager
3
Drill rig setup at Ryberg on MIDD010
Drill rig setup at Ryberg on SODD004
4
CADD003 at Ryberg in progress
5
Helicopter slinging supplies at drillhole CADD003, Ryberg
View west from Mt Thirsty
6
View west from Mt Thirsty
View north from Mt Thirsty
7
HIGHLIGHTS FOR THE YEAR TO 30 JUNE 2022
Mt Thirsty Polymetallic Project, Western Australia (CNJ: 50%)
Geological review commenced at Mt Thirsty following recent discovery by Galileo Mining Ltd
(ASX: GAL) only 200 metres from northern tenement boundary held by the MTJV.
Prospective mineralised horizons on the GAL tenement interpreted to strike a further 1.5 km S-
SW from the northern tenement boundary.
Interpretations supported by lithology &
geophysics.
Program of Work application submitted for a 5,000-metre drill campaign.
Consultants engaged to assess broader nickel sulphide and lithium-caesium-tantalum (LCT)
pegmatite potential on the MTJV tenements.
Subsequent to the end of the financial year, a technical review (incorporating CSA Global,
MTJV technical staff and leading geophysicist Barry Dewet) was completed incorporating
recommendations for RC and diamond drilling as well as further geophysics.
A heritage survey was also successfully completed on the MTJV with minimal impact on
proposed drill-hole locations.
The first phase drilling is underway with a number of drill holes intersecting disseminated,
matrix and semi massive sulphide mineralisation.
Ryberg Polymetallic Project, Greenland (CNJ: 100%)
14 drill-holes completed during 2021 field season, totalling 3,498 metres.
Drilling occurred over three prospects. Nine holes at Miki, three at Sortekap, and two at
Cascata.
First ever regional geophysical survey conducted. Airborne methods acquired magnetic,
radiometric and elevation data.
Extensive geological review undertaken by Conico technical staff, incorporating newly
acquired magnetic data.
Subsequent to the end of the financial year eleven diamond drill holes were completed at
the Ryberg project for a total of 2,771 metres.
Mestersvig Zn-Pb-Cu-Ag Project, Greenland (CNJ: 100%)
Reconnaissance surface sampling completed on broader tenement area.
Extensive geological review undertaken by Conico technical staff, incorporating historic,
geophysical, and surface sample data.
2,112 metres of diamond drilling completed since the end of the financial year over the 2022
field season.
Corporate
The Company undertook a placement to raise $4.02 million (before expenses) in September
2021.
A fully underwritten rights issue was completed in May 2022 raising $2.49 million before
expenses.
Thomas Abraham-James appointed as a non-executive director to the Company.
8
CORPORATE DIRECTORY
DIRECTORS:
Guy T Le Page B.A., B.Sc., B.App.Sc. (Hons), M.B.A., M.Fin.Plan., GradDipAppFin&Inv, F.FIN.,
MAusIMM (Executive)
Gregory H Solomon LLB (Non-Executive Chairman)
Douglas H Solomon B.Juris. LLB (Hons) (Non-Executive)
James B Richardson Dip, Fin Plan (Non-Executive)
Thomas Abraham-James B.Sc. (Hons)., FAusIMM(CP), FSEG, FGSL (Non-Executive)
COMPANY SECRETARY:
Aaron P Gates B.Com CA AGIA
REGISTERED OFFICE:
Level 15,
197 St Georges Terrace
Perth, Western Australia 6000
Tel +61 8 9282 5889
Email: mailroom@conico.com.au
Website: www.conico.com.au
SOLICITORS:
Solomon Brothers
Level 15,
197 St Georges Terrace
Perth, Western Australia 6000
AUDITORS:
Nexia Perth Audit Services Pty Ltd
Level 3
88 William Street
Perth, Western Australia 6000
SHARE REGISTRY:
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia 6009
STOCK EXCHANGE LISTING:
ASX Code: CNJ (ordinary shares) CNJO (listed options)
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the
Australian Securities Exchange Limited.
9
REVIEW OF OPERATIONS
AUSTRALIA
MT THIRSTY COBALT PROJECT
(50% Conico Ltd: 50% Greenstone Resources Ltd (operator) – Joint Venture)
The Mt Thirsty Joint Venture (MTJV) is located 16 kilometres northwest of Norseman, Western
Australia (Figure 1).
The Project contains the Mt Thirsty cobalt-nickel oxide deposit with a JORC Resource of 26.9 Mt at
0.126% cobalt and 0.54% nickel1. A Pre-Feasibility Study of the Project was completed and
announced to the ASX on 20 February 2020.
Figure 1: Location of the Mt Thirsty project
1 ASX: CNJ 09/09/2019
10
The discovery of palladium-platinum-nickel-gold-copper mineralisation on the northern boundary
of the MTJV tenement by Galileo Mining Ltd (ASX Announcement 11 May 2022), has highlighted the
potential for the region to host platinum group element (PGE) mineralisation in ultramafic layered
intrusions similar to the Platreef deposits of South Africa, which contains over 700 Mt of Resources.
The initial 6-hole RC program by Galileo included a number of significant intercepts, including
NRC266 with:
33 metres @ 2.05 g/t 4E (1.64 g/t Pd, 0.28 g/t Pt, 0.09 g/t Au, 0.05 g/t Rh), 0.32% Cu & 0.30% Ni
from 144 m, including;
o 6 metres @ 2.69 g/t 3E (2.21 g/t Pd, 0.37 g/t Pt, 0.11 g/t Au), 0.41% Cu & 0.36% Ni from
159 m; and
o 1 metre @ 3.21 g/t 3E (2.66 g/t Pd, 0.41 g/t Pt, 0.14 g/t Au), 0.48% Cu & 0.46% Ni from
176 m.
Importantly for the MTJV, Galileo’s recent discovery at Callisto is only 200 metres from the northern
tenement boundary held by the MTJV with the extension of the prospective mineralised horizon
onto MTJV tenure supported by geophysics & lithology (CNJ, ASX Announcement, 16 May 2022).
Despite extensive shallow drilling over the Mt Thirsty resource area, the prospective eastern margin
remains largely untested (figure 2) with only 3.5% of all holes drilled at Mt Thirsty penetrating deeper
than 100 metres, also noting Galileo’s discovery hole was from 144 metres downhole. As such, an
initial review indicates that a further 1.5 km of the prospective mineralised horizon may extend onto
the MTJV tenure.
In addition to the untested PGE potential, the MTJV is undertaking a detailed geological review
assessing the western margin of the Mt Thirsty licences for lithium.
Mineralisation at Callisto is associated with sulphides within ultramafic rocks of the Mount Thirsty Sill
complex, and is confined to a 20-30 metre-thick horizon above a gently south-easterly-dipping
sedimentary unit. This area immediately above the sedimentary horizon forms the principal target
zone for the upcoming drill campaign.
While over 700 holes have historically been drilled overtop the prospective horizon, only four
historical drill holes were drilled to depths greater than 100 metres and intersected the target
horizon (Figure 3). However, given that cobalt-nickel mineralisation had historically been the focus
at Mt Thirsty, the intervals from the four holes that intersected prospective horizon were unsampled
for PGE’s (Figure 3). Given the historical nature of this drilling, much of the drill core and remaining
sample pulps have since been disposed of.
11
Figure 2: Plan view of planned drill-hole collars and prospective geological horizon.
Two success-dependent phases of RC and diamond drilling totalling 20,150 metres were planned to
commence in the 2023 financial year (Figure 2). In addition to the untested PGE potential, the MTJV
is undertaking a detailed geological review assessing the western margin of the Mt Thirsty licences
for LCT potential, with historical drilling and mapping previously documenting pegmatites within the
MTJV licence area. Importantly, 150 metres to the west of licences held by the MTJV is the Mt
Thirsty pegmatite where Galileo previously reported a series of steeply dipping, north-south trending
pegmatites. Six grab samples of micaceous (lepidolite) pegmatite were sampled by Galileo
returning an average assay grade of 2.3% Li2O, 1.87% Rb and 476 ppm Ta2052.
2 www.galileomining.com.au/wp-content/uploads/2018/05/GAL-Prospectus.pdf
12
Figure 3: Historic deep drilling showing no PGE assaying within target horizon.
Subsequent to the end of the financial year, the technical review (incorporating CSA Global, MTJV
incorporating
technical
recommendations for RC and diamond drilling as well as further geophysics. A heritage survey was
also undertaken on the MTJV with minimal impact on proposed drill-hole locations.
leading geophysicist Barry Dewet) was completed
staff and
13
The first five drill-holes were completed, and the Company reported (CNJ, ASX Announcement 1st
September 2022) semi-massive and/or heavily disseminated sulphides, including:
o MTRC003D: 127.3 m of disseminated sulphides from 178.4 m, including
37.1 m of heavily disseminated from 268.6 m
o MTRC007D: 76.8 m of disseminated sulphides from 227.0 m, including
19.0 m of heavily disseminated from 227.0 m
o MTRC009D: 51.6 m of disseminated sulphides from 227.0 m, including
34.3 m of heavily disseminated from 232.0 m
o MTRC014D: 51.2 m of disseminated sulphides from 208.0 m, including
15.3 m of heavily disseminated from 208.0 m
o MTJV001: 65.0 metres of disseminated sulphides from 190.0 m, including
22.0 m of heavily disseminated from 233.0 m
Cu & Ni sulphide species logged in core which are often associated with PGE mineralisation at
Callisto with assays due in late September – early October 2022.
14
GREENLAND
OVERVIEW
The Company has two projects on the underexplored east coast of Greenland (Figure 4), held by
its 100% owned subsidiary Longland Resources Ltd. The Ryberg Project is a greenfields exploration
project for precious and base metal occurrences in a large igneous province, and Mestersvig
which is a brownfields exploration project containing the historic Blyklippen zinc-lead mine and
surrounding prospective geology.
Focus is on the east coast of Greenland due to its underexplored nature, and close proximity to
Europe. Longland technical personnel have a combined 35 years’ Greenland experience and
reside in Europe.
Figure 4: Conico’s Greenland Projects.
15
Mestersvig Project
Field activities for the 2021 field season at the Mestersvig project consisted of rock-chip sampling in
the newly granted licence area to the south of the historic Blyklippen Mine, within the Werner
Bjerge Alkaline Igneous Complex.
An extensive geological review was undertaken by Conico technical staff, leading to a far greater
in-depth understanding of the geology of the area and target generation. A significant amount of
data was extracted from historical geological maps, mine plans, drill logs, assays, surface samples,
and geophysical surveys, leading to a proposed drill program of 24 diamond holes for 7500 metres,
as well as vein outcrop validation and sampling.
Fuel was imported to site in preparation for the 2023 drill campaign.
BACKGROUND
Local geology is dominated by Carboniferous, Permian and Triassic sediments intruded by
Palaeogene dolerite sills and dykes. The area is bordered by the Palaeogene Werner Bjerge
alkaline igneous complex to the south, and a major regional fault to the west, beyond which sits
the Caledonian fold belt. The Mestersvig graben is the most conspicuous feature of the project
area, which occurs in a 15-20 km-long anticlinal fold structure amongst widespread faulting. The
graben is 4 km wide and 12 km long, with the western graben fault being the host to the Blyklippen
Mine that produced 545,000 tons of ore at 9.3% lead and 9.9% zinc between 1956-1962.
Mineralisation occurs as fault controlled epithermal lead-zinc veins with accessory silver and
copper. Mineralisation is hosted within quartz veins that range in thickness from 2-50 m, from surface
to unknown depth. Veins are mostly associated with the border faults of the Mestersvig graben, but
also occur distally and are widespread throughout the project area. Ore minerals are typically
massive sphalerit and galena, with minor chalcopyrite and barite.
The Sortebjerg Prospect (Figure 5, Figure 6) is situated approximately 13 km south of the Blyklippen
mine and contains is a mineralised vein that has been subject to historic drilling. It is interpreted to
be the same mineralised western graben fault that hosts the Blyklippen mine, and contains similar
zinc-lead-silver mineralisation, with the addition of copper.
Subsequent to the end of the financial year, ten diamond drill holes were completed at Mestersvig
for a total of 2112 metres (ASX: CNJ announcement 19/09/2022).
Eight holes intercepted disseminated, heavily disseminated and/or matrix sulphides, including:
BKDD003: 3.3 m of disseminated sulphides from 205.0 m,
BKDD004: 15.5 m of disseminated and heavily disseminated sulphides from 211.5 m, and
SBDD003: 4.5 m of matrix sulphides from 134.1 m.
SBDD005: 1.4 m of heavily disseminated sulphides from 120.5 m.
Zn, Pb & Cu sulphides logged in core which is consistent with mineralisation at the historic Blyklippen
Mine (within the licence area) and Sortebjerg Prospect. Copper, lead, zinc, and silver assays are
expected to be returned over mid to late October 2022.
Prospective horizons remain open along strike, with a further 9 km of un-drilled strike on the
Blyklippen-hosted vein, and a further 14 km of untested mineralised quartz vein-bearing faults
throughout the project area.
Regional reconnaissance of the Nuldal Prospect was also successful in identifying additional Pb
mineralisation in the form of massive galena, up to 1 m thick.
16
Figure 5: Map of the 100% owned Mestersvig tenement areas, showing prospect locations.
17
Figure 6: Geological map of Mestersvig area showing historic and planned drill collars.
18
Ryberg Project
Fourteen drill-holes over three prospects (Figure 8) were completed in total for the 2021 field
season, as well as the first regional airborne geophysical magnetic survey (Figure 7). Subsequent to
the end of the financial year, eleven diamond drill holes were completed at the Ryberg project for
a total of 2771 metres (ASX Announcement 15/09/2022).
Sortekap Prospect
Three drill-holes were completed at Sortekap, with successful results. SODD001 intercepted multiple
zones of stringer and vein sulphides containing nickel sulphides, hosted in ultramafic rocks.
SODD003 intercepted vein-hosted orogenic gold, grading up to 42.81 g/t Au. The presence of
mineralised veins lends strong support to further drilling targeting larger concentrations of sulphide
melt. Significant intercepts included:
SODD001: 11 m @ 0.12% Ni & 0.008% Co from 81 m &
o 11 m @ 0.11% Ni & 0.007% Co from 129 m &
o 8 m @ 0.11% Ni & 0.008% Co from 158 m &
o 12 m @ 0.12% Ni & 0.009% Co from 169 m &
o 28 m @.0.18% Ni & 0.011% Co from 187 m &
Including 15 m @ 0.23% Ni & 0.013% Co from 195 m
o 5 m @ 0.15% Ni & 0.007% Co from 221 m &
o 3 m @ 0.17% Ni & 0.008% Co from 234 m
SODD003: 1m @ 1.8g/t Au from 12 m
o 1m @ 1.09g/t Au from 20 m &
o 1m @ 1.82g/t Au from 22 m &
o 1m @ 2.58g/t Au from 41 m &
o 1m @ 42.81g/t Au from 63 m &
o 1m @ 1.12g/t Au from 174 m &
o 1m @ 1.39g/t Au from 179 m
The magnetic survey (figure 7) has identified the presence of a likely crustal scale deep seated
fault located near Sortekap. A magnetic high is present at Sortekap and is coincident with mafic
and ultramafic rocks that cover an area of 5 km2.
Subsequent to the end of the financial year, three drill holes at the Sortekap prospect with two
intersecting weakly disseminated and/or disseminated sulphides within a mafic dyke. Highlights
included:
SODD004: 4.2 m of disseminated sulphides from 103.6 m & 15.8 m of disseminated sulphides
from 260.4 m.
Miki Prospect
Nine drill-holes were completed at Miki. The geophysical survey identified two extensive zones of
high magnetism that coincide with known occurrences of ultramafic xenoliths (hosted within the
Miki Dyke gabbro) and/or surface geochemical anomalies (from historic surface sampling). It is
likely that the magnetic highs are represented by ultramafic material that has been transported to
surface by the Miki Dyke during eruption. Assay results from 2021 drilling confirm that sulphides
intercepted were dominantly unmineralised pyrrhotite and responsible for the electromagnetic
conductors. The pyrrhotite is hosted in basement gneiss and is unrelated to the copper/nickel
sulphides hosted in the Miki Dyke. It is concluded that the electromagnetic targets were a
distraction, and that mineralisation of interest remains untested by drilling.
Subsequent to the end of the financial year, six drill holes completed at the Miki Prospect with five
intersecting weakly disseminated and/or disseminated sulphide mineralisation, including;
MIDD011: 17.7 m of disseminated sulphides from 180.2 m
MIDD013: 9.8 m of disseminated sulphides from 38.0 m
MIDD014: 17.7 m of disseminated sulphides from 47.0 m.
19
Similar to Miki, copper sulphides at Sortekap were logged in core and occurred as weakly
disseminated and/or disseminated sulphides within mafic dykes. Drilling concluded in early
September with assays anticipated in October 2022.
Cascata Prospect
Two drill-holes were completed at Cascata. Drill-hole CADD001 intercepted two mineralised areas
within the black shales at depths of ~150 m and 180 m, with sulphide mineralisation pervasively
replacing black shale. These horizons show increased concentrations in tin, tungsten, copper, zinc,
and lead. The geophysical survey over this area was the first to have ever been done and helped
define the newly identified layered gabbro intrusion, referred to as the ‘Aurora Layered Intrusion’.
Figure 7: Prospects within the Ryberg Project area on top of Total Magnetic Intensity.
20
Figure 8: Satellite image map of 2021 field season drill hole collars at Ryberg.
21
BACKGROUND
The project area is located on the margin of the North Atlantic Large Igneous Province, a major
Tertiary volcanic event related to hotspot magmatism and early rifting of the North Atlantic, which
produced over 6.6 million cubic kilometres of continental flood basalts. Within the project area,
erosion has exposed Cretaceous-Tertiary sediments
rift basin sitting
unconformably on a Precambrian metamorphic basement. The metamorphic basement and the
sedimentary sequence host sub-volcanic mafic sill- and dyke-complexes that formed local feeder
system to the flood-basalt eruptions.
in a downfaulted
Conico believes the project area to have excellent exploration potential for magmatic sulphide-
rich nickel-copper-PGE deposits related to mafic and ultramafic dike-sill complexes, and sulphide-
poor PGE deposits related to large layered mafic and ultramafic intrusions.
CORPORATE
Board Appointment
On 1 June 2022 geologist Mr Thomas Abraham James retired from his role as Chief Executive Officer
of Conico subsidiary Longland Resources and was appointed as a Non-Executive Director of the
Company. Thomas’s role includes engagement in ongoing promotion of the Company’s activities
in addition to monitoring field activities in Greenland alongside Executive Director Guy Le Page.
Capital Raisings
On 15 September 2021 the Company announced it had placed 67,000,000 Shares to Sophisticated
Investors at an issue price of $0.06 per Share, together with one for two free attaching options to
acquire Shares at 10 cents each on or before 30 November 2024 to raise a total of $4,020,000
(before expenses of the Placement).
On 25 May 2022 the Company announced the completion of a 1 for 6 fully underwritten, pro-rata
non-renounceable rights offer at 1.3 cents per Share (together with one for two free attaching
options – CNJO) made to shareholders of Conico raising a total of $2,492,202 (before expenses of
the Offer). Peloton Capital Pty Ltd fully underwrote the Offer.
Subsequent to the end of the financial year, the Company placed (CNJ, ASX Announcement 10
August 2022) 93,750,000 Shares to Sophisticated Investors at an issue price of $0.032 per Share for a
total of $3,000,000 (before expenses of the Placement).
Disclaimer
The interpretations and conclusions reached in this report are based on current geological theory and the
best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that
they are founded on an assessment of probabilities and, however high these probabilities might be, they
make no claim for complete certainty. Any economic decisions that might be taken based on interpretations
or conclusions contained in this report will therefore carry an element of risk.
This report contains forward-looking statements that involve a number of risks and uncertainties. These forward-
looking statements are expressed in good faith and believed to have a reasonable basis. These statements
reflect current expectations, intentions or strategies regarding the future and assumptions based on currently
available information. Should one or more of the risks or uncertainties materialise, or should underlying
assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies
described in this report. No obligation is assumed to update forward-looking statements if these beliefs,
opinions and estimates should change or to reflect other future developments.
Competent Persons Statements
The information contained in this report relating to exploration results for the Greenland projects is based on
information compiled or reviewed by Thomas Abraham-James, a full-time employee of Longland Resources
Ltd. Mr. Abraham-James has a B.Sc. Hons (Geol) and is a Chartered Professional (CPGeo) and Fellow of the
Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Abraham-James has sufficient experience of
relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities
undertaken to qualify as a Competent Person as defined in the 2012 edition of the Joint Ore Reserve
Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr. Abraham-James consents to the inclusion in this report of the matters based on information in
the form and context in which it appears.
22
DIRECTORS’ REPORT
The directors present their report together with the consolidated financial statements of the Group comprising
Conico Ltd (the Company) and its controlled entities and the Group’s interest in a joint venture for the
financial year ended 30 June 2022.
Directors
The names of directors in office at any time during or since the end of the year are:
Gregory H Solomon
Douglas H Solomon
Thomas Abraham-James
Guy T Le Page
James B Richardson
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Company Secretary
The following person held the position of Company Secretary at the end of the financial year and at the date
of this report:
Mr Aaron P Gates has worked for Conico Ltd for the past 14 years. He is a Chartered Accountant and
Chartered Secretary, has completed a Bachelor of Commerce (Curtin University) with majors in accounting
and business law and completed a Diploma of Corporate Governance. Prior to joining Conico he worked in
public practice in audit and corporate finance roles.
Principal Activities
The principal activity of the Group during the financial year ended 30 June 2022 was mineral exploration.
Operating Results
The loss of the Group after providing for income tax amounted to $940,166 (2021: $995,140). Cash outflow from
operating activities was $817,980 (2021: $596,820).
Dividends Paid or Recommended
No dividends were paid or declared for payment during the year.
Review of Mineral Exploration Operations
A review of the operations of the Group during the year ended 30 June 2022 is set out in the Review of
Operations on Page 6.
Financial position
The net assets of the Group have increased by $7,327,673 from 30 June 2021, to $33,209,916 in 2022. This
increase is largely due to the capital raisings completed during the year.
Significant Changes in State of Affairs
In the opinion of the directors, other than disclosed elsewhere in this report, there were no significant changes
in the state of affairs of the Group that occurred during the year.
After Balance Date Events
On 16 August 2022, 93,750,000 shares were issued at $0.032, raising $3,000,000 before costs (6% placement fee
and 15,000,000 options exercisable at 7 cents).
Between 5 July 2022 and 1 September 2022, 2,949,237 options were exercised raising $111,680.
No other matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of
the Group in future financial years.
Future Developments, Prospects and Business Strategies
The Group proposes to continue with its exploration and evaluation program as detailed in the Review of
Operations.
Environmental Issues
The Group is the subject of environmental regulation with respect to mining exploration and will comply fully
with all requirements with respect to rehabilitation of exploration sites.
23
Information on Directors
Gregory H Solomon
Non-Executive Chairman
Qualifications
Experience
LLB
Appointed chairman March 2006. Board member since March 2006. A
solicitor with more than 30 years of Australian and international experience
in a wide range of areas including mining law, commercial negotiation
(including mining and exploration joint ventures) and corporate law. He is a
partner in the legal firm, Solomon Brothers and has previously held
directorships of various public companies since 1984.
Interest in Shares and Options
44,881,024 Ordinary Shares, 3,205,788 CNJO Options
Directorships in other listed entities Eden Innovations Ltd, Tasman Resources Ltd
Guy T Le Page
Qualifications
Experience
Executive
B.A., B.Sc.. B.App.Sc. (Hons).,M.B.A., M.Fin.Plan, GradDipAppFin&Inv, F.FIN.,
MAusIMM
Board member since 30 March 2006. Currently a corporate adviser
specialising in resources. He is actively involved in a range of corporate
initiatives from mergers and acquisitions, initial public offerings to valuations,
consulting and corporate advisory roles. He previously spent 10 years as an
exploration and mining geologist in Australia, Canada and the United
States. His experience spans gold and base metal exploration and mining
geology.
Interest in Shares and Options
29,793,200 Ordinary Shares, 571,270 CNJO Options
Directorships in other listed entities Mt Ridley Mines Ltd, Tasman Resources Ltd
Douglas H Solomon
Qualifications
Experience
Non-Executive
BJuris LLB (Hons)
Board member since 30 March 2006. A Barrister and Solicitor with more than
30 years’ experience in the areas of mining, corporate, commercial and
property law. He is a partner in the legal firm, Solomon Brothers.
Interest in Shares and Options
45,194,974 Ordinary Shares, 3,228,213 CNJO Options
Directorships in other listed entities Eden Innovations Ltd, Tasman Resources Ltd
James B Richardson
Qualifications
Experience
Non-Executive
Dip, Fin. Plan.
Board member since 11 November 2008. Currently a corporate advisor
where he has been actively involved in a range of corporate activities. He
has also been employed as a specialist business development executive in
some of the more successful national financial services organisations.
Additionally, he has extensive experience
investment
opportunities, structuring projects and negotiating financial transactions to
meet the expectations of the investment market.
in evaluating
Interest in Shares and Options
48,416,668 Ordinary Shares, 3,458,334 CNJO Options
Directorships in other listed entities None
Thomas Abraham-James
Non-Executive
Qualifications
Experience
B.Sc., FGS, FSEG, CGeol, EurGeol
Board member since 1 June 2022. Thomas has spent much time looking for
porphyry and epithermal systems for gold and base-metals including eight
years with Rio Tinto in Turkey and southeast Europe followed by six years in
Mongolia with Ivanhoe Mines during the period of the Ouy Tolgoi discovery.
He also spent several years with Nautilus Minerals based in Brisbane sorting
out the geology of the Solwara 1 seafloor massive sulphide (SMS) deposit
led to its final drilling.
Interest in Shares and Options
28,843,795 Ordinary Shares, 5,000,000 4 cent ESOP Options
Directorships in other listed entities None
24
Remuneration Report (Audited)
This report details the nature and amount of remuneration for each director of Conico Ltd, and for the
executives receiving the highest remuneration.
Remuneration Policy
The remuneration policy of Conico Ltd has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component and offering specific long-
term incentives based on key performance areas affecting the company’s financial results. The board
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best
executives and directors to run and manage the company, as well as create goal congruence between
directors, executives and shareholders.
The board’s policy for determining the nature and amount of remuneration for board members and senior
executives of the company is as follows:
All executives receive a base salary (which is based on factors such as length of service and experience),
superannuation, fringe benefits and options. Executives are also entitled to participate in the employee share
and option arrangements. All Australian directors and executives receive superannuation and do not receive
any other retirement benefits.
All remuneration paid to directors and executives is valued at the cost to the company and expensed.
Options are valued using the Black-Scholes methodology or an appropriate market-based pricing valuation
methodology. The board policy is to remunerate non-executive directors at market rates for time,
commitment, and responsibilities. The Group does not have a policy on directors hedging their shares.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval
by shareholders. Fees for non-executive directors are not linked to the performance of the company.
However, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in
the company.
Details of Remuneration for Year Ended 30 June 2022
The remuneration for each director and each of the executive officers of the Group during the year was as
follows:
Key Management Person
Short-term Benefits
Post-
employme
nt benefits
Other
long-term
benefits
Terminatio
n Benefits
Share-based
payments
Total
Salary
and Fees
Cash
bonus
Super-
annuation
Non-
cash
benefit
Other
Other
Equity Options
$
$
$
$
$
$
$
$
$
2022
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
60,000
36,000
48,000
36,000
-
-
-
-
-
-
-
-
Thomas Abraham-James (ii) 200,639 25,000 4,676
Aaron P Gates(i)
-
-
-
5,700
3,420
4,800
3,600
-
-
380,639 25,000 4,676
17,520
2021
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
60,000
36,000
45,000
36,000
-
-
-
-
-
-
-
-
Thomas Abraham-James (ii) 136,784
Aaron P Gates(i)
-
- 2,301
-
-
5,700
3,420
4,275
3,420
-
-
313,784
- 2,301
16,815
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
65,700
39,420
52,800
39,600
230,315
-
427,835
65,700
39,420
49,275
39,420
- 87,500
226,585
-
6,700
6,700
- 94,200
427,100
25
(i) - Mr Gates is remunerated by Princebrook Pty Ltd (a company in which Mr Gregory Solomon and Mr
Douglas Solomon have an interest) under the Management Services agreement with the Company. During
the year the Company paid $144,000 (2021: $144,000) to Princebrook Pty Ltd for management services. The
Management Services Agreement may be terminated by giving not less than three months’ written notice. In
2021 Mr Gates received 500,000 options exercisable at $0.022 and expiring 21 September 2023.
(ii) – On June 2022 Mr Abraham-James became a Non-Executive director of Conico Ltd, resigning as CEO of
Longland Resources Ltd. In 2021 Mr Abraham-James received 5,000,000 options exercisable at $0.04 and
expiring 30 September 2024.
Number of Options Held by Key Management Personnel
Balance
1.7.2021
Granted
as
Compen-
sation
Options
Exer-
cised
Net
Change
Other*
Balance
30.6.2022
Total
Vested
30.6.2022
Total Exer-
cisable
30.6.2022
Total
Unexer-
cisable
30.6.2022
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
-
-
-
-
Thomas Abraham-James 5,000,000
Aaron P Gates
Total
700,000
5,700,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,205,788 3,205,788 3,205,788 3,205,788
3,228,213 3,228,213 3,228,213 3,228,213
571,270
571,270
571,270
571,270
3,458,334 3,458,334 3,458,334 3,458,334
- 5,000,000 5,000,000 5,000,000
775,000 1,475,000 1,475,000 1,475,000
11,238,605 16,938,605 16,938,605 16,938,605
-
-
-
-
-
-
-
*Net Change Other refers to options that have been purchased, sold, lapsed or issued during the year.
Number of Shares Held by Key Management Personnel
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Thomas Abraham-James
Aaron P Gates
Total
Balance
30.6.2021
Received as
Compen-
sation
Options
Exercised
Net Change
Other*
Balance
30.6.2022
38,469,448
38,738,548
26,800,661
38,750,000
33,328,941
1,300,000
177,387,598
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,411,576
44,881,024
6,456,426
45,194,974
2,992,539
29,793,200
9,666,668
48,416,668
(4,485,146)
28,843,795
2,250,000
3,550,000
23,292,063
200,679,661
*Net Change Other refers to shares purchased, sold or other movements.
Directors Meetings
During the financial year, seven meetings of directors were held. Attendances by each director were as
follows:
Directors’ Meetings
Number
eligible
to attend
Number
attended
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Thomas Abraham-James
Indemnifying Officers
4
4
3
3
0
4
4
3
3
0
The company has arranged for an insurance policy to insure the directors against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the
capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the
company. The total premium payable was approximately $28,485.
26
Proceedings on Behalf of Group
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all
or any part of those proceedings. The Group was not a party to any such proceedings during the year.
Options
At the date of this report, the unissued ordinary shares of Conico Ltd under option are as follows:
Grant Date
6 May 2022
Date of Expiry
3 May 2023
22 September 2020
21 September 2023
Various
31 December 2026
24 November 2020
24 November 2023
15 January 2021
15 January 2024
19 May 2021
30 September 2024
Various
20 January 2024
22 September 2021
30 November 2024
Exercise Price
Number under Option
$0.016
$0.022
$0.026
$0.04
$0.04
$0.04
$0.07
$0.10
1,000,000
1,000,000
209,027,092
8,500,000
2,300,000
10,000,000
60,496,307
33,500,000
325,823,399
During the year ended 30 June 2022, no ordinary shares of Conico Ltd were issued on the exercise of options
granted under the Conico Ltd Employee Share Option Plan. No shares have been issued since in terms of the
plan.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of any other body corporate.
Non-audit Services
The board of directors is satisfied that the provision of non-audit services during the year is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The directors are
satisfied that the services disclosed below did not compromise the external auditor’s independence for the
following reasons:
all non-audit services are reviewed and approved prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June
2022.
Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2022 has been received and can be
found on page 128.
Signed in accordance with a resolution of the Board of Directors.
Gregory H Solomon
Chairman
Dated this 29th day of September 2022
27
Auditor’s independence declaration under section 307C of the Corporations
Act 2001
To the directors of Conico Ltd
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year
ended 30 June 2022 there have been:
(i) no contraventions of the auditor’s independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
29 September 2022
28
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2022
Other Income
Accounting and audit
Depreciation and amortisation
Employee benefits expense
Finance costs
Foreign exchange gain/(loss)
Insurance expense
Legal and other consultants
Management fees
Media and marketing
Other expenses
Rent
Travel and accommodation
Loss before income tax
Income tax benefit
Loss for the year
Other Comprehensive Income
Items that may be reclassified to profit or loss:
Foreign currency translation reserve
Income tax relating to comprehensive income
Total other comprehensive income
Total Comprehensive Loss attributable to
members of the parent entity, net of tax
Note
2
Consolidated
2022
$
2021
$
1,940
(33,944)
(5,055)
1,132
(37,521)
(5,829)
(206,620)
(382,120)
-
2,018
(42,404)
(96,998)
(144,000)
(190,285)
(152,744)
(9,176)
(62,898)
(5,710)
(8,086)
(33,706)
(226,842)
(144,000)
(63,369)
(116,810)
(8,497)
(43,738)
(940,166)
(1,075,096)
3
-
79,956
(940,166)
(995,140)
(497,020)
(21,279)
-
-
(497,020)
(21,279)
(1,437,186)
(1,016,419)
Basic/Diluted loss per share (cents per share)
5
(0.09)
(0.14)
The accompanying notes form part of these financial statements.
29
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
7
8
9
10
12
13
14
15
4,916,710
398,863
5,315,573
3,918,252
311,652
4,229,904
64,870
54,920
28,939,207
22,272,897
29,004,077
22,327,817
34,319,650
26,557,721
847,234
847,234
262,500
262,500
1,109,734
412,978
412,978
262,500
262,500
675,478
33,209,916
25,882,243
39,980,010
31,425,251
1,120,851
1,407,771
(7,890,945)
(6,950,779)
33,209,916
25,882,243
The accompanying notes form part of these financial statements.
30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2022
Consolidated Group
Ordinary
Share Capital
Foreign
Currency
Translation
Reserve
Option
Reserve
Retained
Earnings
Total
$
$
$
$
$
20,394,350
11,030,901
-
-
-
-
-
-
-
-
(21,279)
(21,279)
788,650
(5,955,639) 15,227,361
-
640,400
- 11,030,901
-
640,400
-
-
-
(995,140)
(995,140)
-
(21,279)
(995,140) (1,016,419)
Balance at 30 June 2020
Shares issued (net of costs)
Issue of options
Net loss for the year
Other comprehensive income
Total comprehensive income / (loss)
Balance at 30 June 2021
31,425,251
(21,279)
1,429,050
(6,950,779) 25,882,243
Shares issued (net of costs)
8,554,759
Issue of options
Net loss for the year
Other comprehensive income
Total comprehensive income / (loss)
-
-
-
-
-
-
-
(497,020)
(497,020)
-
210,100
-
-
8,554,759
210,100
-
-
-
(940,166)
(940,166)
-
(497,020)
(940,166) (1,437,186)
Balance at 30 June 2022
39,980,010
(518,299)
1,639,150
(7,890,945) 33,209,916
The accompanying notes form part of these financial statements.
31
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
R&D tax rebate
Note
Consolidated
2022
$
2021
$
1,586
(820,009)
-
443
-
-
(662,919)
(14,041)
184
79,956
Net cash provided by/(used in) operating activities
20
(817,980)
(596,820)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary (net of cash acquired)
Cash advanced for exploration costs
Exploration and evaluation expenditure
Payments for property, plant & equipment
Net cash provided by/(used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
-
-
(6,605)
(1,206,240)
(6,876,744)
(2,025,669)
(46,171)
(48,785)
(6,922,915)
(3,287,299)
Proceeds from share issues (net of costs)
14
8,758,559
Repayment of loans
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Net increase/(decrease) due to foreign exchange
movements
Cash at beginning of financial year
Cash at end of financial year
7
-
8,758,559
1,017,664
(19,206)
3,918,252
4,916,710
8,114,089
(393,050)
7,721,039
3,836,920
(90,069)
171,401
3,918,252
The accompanying notes form part of these financial statements.
32
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The
financial report of Conico Limited and its controlled entity (Group) complies with International Financial
Reporting Standards (IFRS).
The financial report covers the consolidated group of Conico Ltd and its controlled entity as at and for the
year ended 30 June 2022. Conico Ltd is a listed public company, incorporated and domiciled in Australia.
The Group is a for-profit entity and primarily is involved in mineral exploration for cobalt, nickel and
manganese.
The financial report was authorised for issue on 29 September 2022 by the Board of Directors.
The following is a summary of the material accounting policies adopted by the Group in the preparation of
the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation
The accounting policies set out below have been consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair
value basis of accounting has been applied. These consolidated financial statements are presented in
Australian dollars. The functional currency of Longland Resources Limited is British Pound Sterling. The
functional currency of all other Group entities is Australian dollars.
Going Concern
These financial statements have been prepared on a going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary
course of business.
The Group has reported a net loss for the year of $940,166 (2021: $995,140) and a cash outflow from
operating activities of $817,980 (2021: $596,820). The directors carefully manage expenditure and, subject
to being able to raise further finance, are of the view, based on cash flow forecasts, that the Group will be
able to continue its operations as a going concern. The continuing applicability of the going concern basis
of accounting is dependent upon the Group’s ability to source additional finance. The directors are
confident that the Group will be successful in securing additional funds, should the need arise. The directors
are also aware that the Group has the option, if necessary, to defer expenditure and reduce administration
costs in order to minimise its capital raising requirements.
Based on these facts, the directors consider the going concern basis of preparation to be appropriate for
this financial report. Should the Company be unsuccessful in securing additional finance, there is a material
uncertainty which may cast significant doubt whether the entity will be able to continue as a going
concern and therefore, whether it will realise its assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial report.
The financial statements do not include any adjustments relative to the recoverability and classification of
recorded asset amounts or, to the amounts and classification of liabilities that might be necessary should
the entity not continue as a going concern.
Accounting Policies
a. Principles of Consolidation
A controlled entity is any entity Conico Ltd is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the
activities of the entity. A list of controlled entities is contained in Note 16 to the financial statements. All
controlled entities have a June financial year-end.
All inter-company balances and transactions between entities in the consolidated group, including any
unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled
entities have been changed where necessary to ensure consistencies with those policies applied by the
parent entity.
b. Interests in a Joint Operation
The consolidated financial statements include the assets that the Group controls and the liabilities that it
incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share
of the income that it earns from the joint operation. Details of the Group’s interests are shown at Note
11.
33
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
c. Income Tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the balance sheet date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is
realised or liability is settled. Deferred tax is credited in the income statement except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against
equity.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. No deferred income tax will be recognised from the initial recognition of an asset
or liability, excluding a business combination, where there is no effect on accounting or taxable profit or
loss.
Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future tax profits will be available against which they
can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that
the group will derive sufficient future assessable income to enable the benefit to be realised.
The R&D tax offset is recognised upon receipt.
d. Property, Plant and Equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis
of the expected net cash flows that will be received from the asset’s employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
The depreciation rates used for each class of depreciable assets are:
Plant and equipment
15.00–50.00%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are recognised in profit or loss.
e. Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward where right of tenure is current and 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 that permits reasonable assessment of the
existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and
are included in the costs of that stage. Any changes in the estimates for the costs are accounted on a
prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature
and extent of the restoration due to community expectations and future legislation.
f.
Impairment of Non-financial Assets
At each reporting date, the Group reviews the carrying values of its non-financial / tangible and
intangible assets to determine whether there is any indication that those assets have been impaired. If
such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value
less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other
Comprehensive Income. Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset
belongs.
34
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
g. Cash and cash equivalents
Cash comprises current deposits with banks.
h. Financial Instruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs,
when the related contractual rights or obligations exist. Subsequent to initial recognition these
instruments are measured as set out below.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market and are stated at amortised cost using the effective interest rate
method.
The Group makes use of a simplified approach in accounting for trade and other receivables and
records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the financial
instrument. In calculating, the entity uses its historical experience, external indicators and forward-
looking information to calculate the expected credit losses.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using
the effective interest method. Borrowings are removed from the balance sheet when the obligation
specified in the contract is discharged, cancelled or expired.
Impairment
At each reporting date, the Group assesses at a specific asset level whether there is objective evidence
that a financial instrument has been impaired. Impairment losses are recognised in the Statement of
Profit or Loss and Other Comprehensive Income.
i. Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be
reliably measured.
j. Revenue
Revenue is measured at the transaction price received or receivable (which excludes estimates of
variable consideration) allocated to the performance obligation satisfied and represents amounts
receivable for services provided in the normal course of business, net of discounts, VAT, GST and other
sales related taxes. As the expected period between transfer of a promised service and payment from
the customer is one year or less then no adjustment for a financing component has been made.
Revenue arising from the provision of services is recognised when and to the extent that the customer
simultaneously receives and consumes the benefits of the Group’s performance or the Group does not
create an asset with an alternative use but has an enforceable right to payment for performance
completed to date.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant
period using the effective interest rate, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the net carrying amount of the financial
asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
k. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
35
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
l. New accounting standards and interpretations
The Group has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective
for the current year.
m. Segment reporting
Segment results that are reported to the Group’s board of directors (the chief operating decision
maker) include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis.
n. Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity.
o. New accounting standards and interpretations not yet adopted
A number of new standards and amendments to standards are effective for annual periods beginning
after 1 July 2021, and have not been applied in preparing these consolidated financial statements.
Management are of the view that these standards and amendments will not have a significant impact
on the financials.
p. Share-based payments
The Group provides benefits to employees (including senior executives) of the Group in the form of
share-based payments. The cost of these share-based payments is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value at grant date is
measured by use of the Black-Scholes Option Pricing Model. The expected life used in the model has
been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise
restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on the entity’s estimate of shares that will eventually
vest.
For cash-settled share-based payments, a liability equal to the portion of the goods or services received
is recognised at the current fair value determined at each reporting date.
q. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the net profit/loss attributable to the owners of Conico
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
r. Critical accounting judgements, estimates and assumptions
Judgements made by management in the application of IFRS that have significant effects on the
financial statements and estimates with a significant risk of material adjustments in the next year are
disclosed, where applicable, in the relevant note to the financial statements. The following are the key
assumptions concerning the future, and other key sources of estimation uncertainty at the balance
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year:
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group
that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of
the asset is determined. The Company did not recognise any impairment charges on any of its
tenements during the year (2021: nil).
Exploration and evaluation costs carried forward
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a
number of factors, including whether the Group decides to exploit the related lease itself or, if not,
whether it successfully recovers the related exploration and evaluation asset through sale.
36
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
r. Critical accounting judgements, estimates and assumptions continued
Exploration and evaluation costs carried forward continued
Factors which could impact the future recoverability include the level of proved, probable and inferred
mineral resources, future technological changes which could impact the cost of mining, future legal
changes (including changes to environmental restoration obligations) and changes to commodity
prices. To the extent that capitalised exploration and evaluation expenditure is determined not to be
recoverable in the future, this will increase losses and reduce net assets in the period in which this
determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in
the area of interest have not yet reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves. To the extent that it is determined in the
future that this capitalised expenditure should be written off, this will increase losses and reduce net
assets in the period in which this determination is made.
Share-based payments
The Company makes equity settled share-based payments to certain employees and consultants,
which are measured at fair value at the date of grant and expensed on a straight line basis over the
vesting period, based on the Company’s estimate of shares that will eventually vest. The fair values are
determined using the Black-Scholes Option Pricing Model. Vesting assumptions are reviewed during
each reporting period to ensure they reflect current expectations.
Loans to controlled entities
The directors believe that the recoupment of the inter-company receivables from Conico Ltd to
Meteore Metals Pty Ltd and Longland Resources Ltd is dependent on the successful development and
commercial exploitation or, alternatively, the sale of the exploration assets held by the controlled entity.
NOTE 2: OTHER INCOME
— interest received
— other income
Total Other Income
2022
$
443
1,497
1,940
Consolidated
2021
$
184
948
1,132
NOTE 3: INCOME TAX BENEFIT
a.
The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as
follows:
Prima facie tax payable on loss from ordinary activities before
income tax at 26% (2021: 26%)
(244,443)
(258,736)
Tax effect of:
—
—
—
Research & development rebate
Current year temporary differences not recognised
Current year tax losses not recognised
Income tax (expense) / benefit
b.
Components of deferred tax
Unrecognised deferred tax asset – losses
Unrecognised deferred tax asset – provisions and accruals
Unrecognised deferred tax asset – capital raising costs
-
79,956
561,801
482,492
(317,358)
(223,756)
-
79,956
5,825,066
3,988,024
258,865
562,861
91,530
368,840
Unrecognised deferred tax liabilities – exploration and evaluation
(3,750,282)
(2,017,041)
Net Unrecognised deferred tax assets
2,896,510
2,431,353
Deferred tax assets have not been brought to account as it is not probable within the immediate future that
tax profits will be available against which deductible temporary differences and tax losses can be utilised. The
benefit of the tax losses will only be obtained if the Group complies with conditions imposed by the relevant
tax legislation.
37
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4: AUDITOR’S REMUNERATION
Remuneration of the auditor
NOTE 5: LOSS PER SHARE
a.
Reconciliation of loss to profit or loss
Profit/(loss)
Loss used to calculate basic EPS
b.
Weighted average number of ordinary shares outstanding during
the year used in calculating basic EPS
Loss per share
Consolidated
2022
$
2021
$
21,475
16,024
(940,165)
(995,140)
(940,165)
(995,140)
1,034,941,587 691,433,579
(0.09)
(0.14)
Diluted loss per share has not been calculated as the result does not increase loss per share.
NOTE 6: EMPLOYEE BENEFITS
a.
Employee benefits expense
Expenses recognised for employee benefits are analysed below:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
Capitalised in exploration and evaluation assets
Total
b.
Share-based employee remuneration
407,315
316,085
17,520
16,815
-
-
-
-
6,100
94,200
(224,315)
(44,980)
206,620
382,120
Included under employee benefits expense in the statement of profit or loss and other comprehensive
income is $6,100 (2021: $188,400) which relates, in full, to equity settled share-based payment transactions.
All options granted to personnel/key consultants are over ordinary shares in Conico Ltd, which confer a right
of one ordinary share for every option held. When issued, the shares carry full dividend and voting rights.
NOTE 7: CASH AND CASH EQUIVALENTS
Cash at bank
Reconciliation of cash
Cash at the end of the financial year as shown in the consolidated statement of
cash flows is reconciled to items in the balance sheet as follows:
Cash and cash equivalents
Consolidated
2022
$
2021
$
4,916,710
3,918,252
4,916,710
3,918,252
4,916,710
3,918,252
4,916,710
3,918,252
38
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 8: OTHER CURRENT ASSETS
Prepayments
NOTE 9: PLANT AND EQUIPMENT
Equipment:
At cost
Accumulated depreciation
Total Plant and Equipment
a.
Movements in Carrying Amounts
Consolidated
2022
$
2021
$
398,863
398,863
311,652
311,652
147,712
(82,842)
64,870
104,893
(49,973)
54,920
Movement in the carrying amount between the beginning and the end of the current financial year.
Opening balance
Assets purchased
Acquired through purchase of subsidiary
Disposals
Net exchange differences
Depreciation expense
Closing balance
b.
Impairment losses
54,920
49,527
-
(2,885)
(4,213)
(32,479)
64,870
5,780
51,338
2,404
-
1,227
(5,829)
54,920
The total impairment loss recognised in the consolidated statement of profit or loss and other comprehensive
income during the current year amounted to $Nil (2021: $Nil).
NOTE 10: EXPLORATION AND EVALUATION ASSETS
Balance at the beginning of the financial year
Acquired through purchase of subsidiary
Expenditure incurred during the year
Net exchange differences
Balance at the end on the financial year
22,272,897
15,930,182
-
4,405,983
6,456,342
1,892,319
209,968
44,413
28,939,207
22,272,897
Capitalised costs amounting to $6,876,744 (2021: $2,025,669) have been included in cash flows from investing
activities in the statement of cash flows for the consolidated entity.
NOTE 11: JOINT OPERATION
A wholly controlled entity, Meteore Metals Pty Ltd, has a 50% interest in the Mt Thirsty Joint Venture, whose
principal activity is the development of the Mt Thirsty nickel, cobalt and manganese project. The
consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in
the course of pursuing the joint operation and the expenses that the Group incurs and its share of the
income that it earns from the joint operation.
39
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 11: JOINT OPERATION CONTINUED
Share of joint operation results and financial position:
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Total Liabilities
Revenue
Expenses
Profit / (Loss) before income tax
Income tax expense
Profit / (Loss) after income tax
NOTE 12: TRADE AND OTHER PAYABLES
Trade payables
Sundry payables and accrued expenses
NOTE 13: PROVISIONS
Opening balance
Movements
Closing balance
Consolidated
2022
$
2021
$
5,593
6,409
3,571,136
3,493,148
3,576,729
3,499,557
70,245
82,745
-
(7,481)
(7,481)
-
7,592
20,092
-
(5,045)
(5,045)
-
(7,481)
(5,045)
109,755
737,479
847,234
323,438
89,540
412,978
262,500
262,500
-
-
262,500
262,500
This mainly relates to a provision of $250,000 that has been recognised in relation to the Group’s 50% share of
the liability to pay the original owners of the Mt Thirsty project $500,000 upon the commencement of mining
on the tenements. The directors believe this will not become due for at least a couple of years. This amount
has not been recorded at present value as a timeframe for discounting is not determinable. The remaining
balance relates to a rehabilitation provision.
NOTE 14: ISSUED CAPITAL
1,358,268,874 (2021: 916,367,041) ordinary shares
39,980,010
31,425,251
2022
2012$ 2021
No.
No.
2022
$
2021
$
a.
Ordinary shares
At the beginning of reporting period
916,367,041
384,398,221
31,425,251
20,394,350
Shares issued during the year (net of costs)
441,901,833
531,968,820
8,554,759
11,030,901
At reporting date
1,358,268,874
916,367,041
39,980,010
31,425,251
Ordinary shares participate in dividends and in the proceeds of winding up in proportion to the number of
shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called,
otherwise each shareholder has one vote on a show of hands. The Company has no authorised share
capital or par value. All issued shares are fully paid.
40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14: ISSUED CAPITAL CONTINUED
b.
Options
At the beginning of reporting period
Issued during the year
Options lapsed during the year
Options exercised during the year
At reporting date
c.
Capital Management
2022
No.
2021
No.
99,144,140
42,264,866
243,527,092
99,144,140
- (42,243,327)
(16,847,833)
(21,539)
325,823,399
99,144,140
Management controls the working capital of the Company in order to maximise the return to
shareholders and ensure that the Company can fund its operations and continue as a going concern.
Management effectively manages the Company’s capital by assessing the Company’s financial risks
and adjusting its capital structure in response to changes in these risks and in the market. These
responses include the management of expenditure and debt levels, distributions to shareholders and
capital raisings. There have been no changes in the strategy adopted by management to control the
capital of the Company since the prior year.
NOTE 15: RESERVES
a.
Option Reserve
The option reserve records items recognised as expenses on valuation of share options.
b.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on the translation of
foreign subsidiaries.
NOTE 16: CONTROLLED ENTITIES
Controlled Entities
Meteore Metals Pty Ltd
Longland Resources Ltd
Country of
Incorporation
Australia
United Kingdom
NOTE 17: PARENT COMPANY INFORMATION
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Option reserve
Total reserves
Financial performance
Profit / (Loss) for the year
Other comprehensive income
Total comprehensive loss
41
Percentage Owned (%)
2022
100
100
2022
$
2021
100
100
2021
$
4,811,198
3,861,031
28,700,712
21,697,467
33,511,910
25,558,497
119,239
119,239
81,750
81,750
39,980,010
31,425,251
(8,226,489)
(7,377,554)
1,639,150
1,429,050
1,639,150
1,429,050
(848,935)
(814,389)
-
-
(848,935)
(814,389)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: PARENT COMPANY INFORMATION CONTINUED
Contingent Liabilities and Commitments
The Directors are not aware of any contingent liabilities or capital commitments as at 30 June 2022.
Guarantees in respect of the debts of its subsidiaries
The parent entity has provided a guarantee to Cartwright Drilling Inc. in relation to the drilling program
being undertaken in Greenland by its subsidiary Longland Resources Ltd. There are no other parent
entity guarantees in respect of the debts of its subsidiary at year end.
NOTE 18: CAPITAL AND LEASING COMMITMENTS
a.
Capital Expenditure Commitments
Payable:
—
—
not later than 12 months
greater than12 months
b.
Exploration Expenditure Commitments
Consolidated
2022
$
2021
$
-
-
-
-
-
-
In order to maintain current rights of tenure to exploration tenements, the company is required to
perform minimum exploration work to meet the requirements specified by various governments. It is
anticipated that expenditure commitments for the twelve months will be tenement rentals of $20,000
(2021: $15,000) and exploration expenditure of nil (2021: $72,000), of which the Group is required to
meet 50% of.
NOTE 19: SHARE-BASED PAYMENTS
All options granted are over ordinary shares in Conico Ltd, which confer a right of one ordinary share for
every option held. When issued, the shares carry full dividend and voting rights.
Share-based payments - Options
2022
2021
Outstanding at the beginning of the year
Granted
Exercised
Lapsed
Outstanding at year-end
Exercisable at year-end
Number of
Options
Number of
Options
Weighted
Average
Exercise
Price
$
Weighted
Average
Exercise
Price
$
57,000,000
31,000,000
(15,200,000)
0.050
0.026
0.04
14,000,000
57,000,000
0.055
0.050
-
-
-
-
(14,000,000)
0.055
72,800,000
72,800,000
0.042
0.042
57,000,000
0.050
57,000,000
0.050
The options outstanding at 30 June 2022 had a weighted average exercise price of $0.042 and a weighted
average remaining contractual life of 2.8 years.
For the options granted during the current financial year, the valuation model inputs used to determine the
fair value at the grant date, are as follows:
Grant Date
Expiry
Date
Share Price at
Grant Date
Exercise Price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
4/5/2022
3/5/2023
30/3/2022 31/12/2026
$0.012
$0.015
$0.016
$0.026
100%
100%
-
-
0.25%
0.25%
$0.006
$0.007
The following options were exercised during the year ended 30 June 2022.
Expiry Date
Exercise Price
Number of options
24/11/2023
15/1/2024
$0.04
$0.04
11,500,000
3,700,000
42
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 20: CASH FLOW INFORMATION
a. Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in profit/(loss)
Depreciation
Options expense
Interest expense capitalised
Changes in assets and liabilities, net of non-cash payments
(Increase)/decrease in trade and term receivables
Increase/(decrease) in trade payables and accruals*
Cash flow used in operations
* - Net of Exploration and Evaluation cash flows.
NOTE 21: RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Transactions with related parties:
Key Management Personnel
Management fees and administration fees paid to Princebrook Pty Ltd, a
company in which Mr GH Solomon and Mr DH Solomon have an interest. At 30
June 2022 $12,000 (2021: $12,000) was included in Trade and Other Payables
owing to Princebrook Pty Ltd.
Legal and professional fees and reimbursed expenses paid to Solomon Brothers, a
firm of which Mr GH Solomon and Mr DH Solomon are partners.
Corporate advisory fees paid to RM Corporate Finance Pty Ltd, a company in
which Mr G T Le Page and Mr J B Richardson have an interest.
Website development, media and marketing fees paid/payable to RM Corporate
Finance Pty Ltd, a company in which Mr G Le Page and Mr J Richardson have an
interest.
Lead manager and placement fees paid/payable to RM Corporate Finance Pty
Ltd, a company in which Mr G Le Page and Mr J Richardson have an interest.
Underwriting fee paid/payable to RM Corporate Finance Pty Ltd (including
$140,000, being the fair value of 20,000,000 underwriter options), a company in
which Mr G Le Page and Mr J Richardson have an interest.
Associated Companies
2022
$
2021
$
(940,166)
(995,140)
5,055
6,100
-
5,829
188,400
5,710
(87,211)
198,242
14,340
184,041
(817,980)
(596,820)
2022
$
2021
$
144,000
144,000
60,669
34,537
42,000
42,000
8,340
27,695
290,280
64,616
-
262,656
Reimbursement to Tasman Resources Ltd (which has a 10.8% interest in the
Company) for employee costs on an hourly basis, in relation to Tasman staff utilised
by the Company.
605
3,703
43
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 22: SEGMENT REPORTING
The Group has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors (chief operating decision maker) in assessing performance and determining the
allocation of resources. The following have been identified as individual segments:
Greenland
Conico holds a 100% in both the Ryberg and Mestersvig Projects in Greenland. The Ryberg Project that
covers an area of 4,521km² containing the Sortekap gold prospect and the Miki Fjord & Togeda Cu-Ni-Co-
PGE-Au magmatic sulphide prospects. The Mestersvig Project containing the historic Blyklippen Pb-Zn mine
and Sortebjerg Pb-Zn prospect.
Mt Thirsty JV
Conico holds a 50% interest in the Mt Thirsty Cobalt Project, located 16km north-northwest of Norseman,
Western Australia. The Project contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit that has the
potential to emerge as a significant cobalt producer. In addition to the Co-Ni Oxide Deposit, the Project also
hosts nickel sulphide (Ni-S) mineralisation.
Unallocated
Unallocated items comprise items that cannot be directly attributed to the Greenland Exploration or the Mt
thirsty JV segments and corporate costs which includes those expenditures supporting the business during
the period.
The segment information for the reportable segments for the year ended 30 June 2022 is as follows
Year ended 30 June 2022
Greenland
Mt Thirsty JV
Unallocated
$
$
$
Total
$
Year ended 30 June 2021
Greenland
Mt Thirsty JV
Unallocated
$
$
$
Segment loss before tax
Impairment of assets
Capital expenditure additions
Segment assets
Segment liabilities
-
-
6,426,443
13,337,359
(658,249)
Segment loss before tax
Impairment of assets
Capital expenditure additions
Segment assets
Segment liabilities
-
-
6,331,608
6,684,356
(324,421)
16,022,428
4,959,863
(332,246)
(119,239)
-
-
79,426
-
-
12,516
(940,165)
(940,165)
-
-
-
7,920
-
6,505,869
34,319,650
(1,109,734)
Total
$
-
6,352,044
26,557,721
(675,478)
(995,140)
(995,140)
15,941,683
3,931,682
(270,092)
(80,965)
NOTE 23: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent assets or contingent liabilities as at 30 June 2022 (30 June
2021: Nil).
NOTE 24: EVENTS AFTER THE BALANCE SHEET DATE
Between 5 July 2022 and 1 September 2022 2,949,237 shares were issued pursuant to options being exercised,
raising $111,680.
On 16 August 2022 93,750,000 shares were issued at $0.032 pursuant to a placement raising $3,000,000 before
the costs of the offer. On 30 August 2022, 15,000,000 options exercisable at 7 cents expiring on 20 January
2024 were issued in part consideration of placement fees.
No other matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state
of affairs of the Group in future financial years.
44
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 25: FINANCIAL INSTRUMENTS
a.
Financial Risk Exposures and Management
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity
risk and credit risk.
i.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Group has minimal exposure to
interest rate risk, the only asset / liability affected by changes in market interest rates is Cash and
cash equivalents.
ii.
Liquidity Risk
The Company manages liquidity risk by monitoring forecast cash flows and ensuring that
adequate funding is maintained. The Company’s operations require it to raise capital on an on-
going basis to fund its planned exploration programs and to commercialise its tenement assets.
If the Company does not raise capital in the short term, it can continue by reducing planned
but not committed exploration expenditure until funding is available. All financial liabilities are
expected to be settled within 6 months.
iii.
Foreign currency risk
The Group is exposed to fluctuations in foreign currencies arising from the purchase of goods
and services in currencies other than the companies’ functional currency. The risk is measured
using sensitivity analysis and cash flow forecasting. At 30 June 2022 the effect on the loss as a
result of a 10% increase in the value of the Australian dollar, with all other variables remaining
constant would be a decrease in loss by approximately $10,000 (2021: $25,000). Exploration
expenditure relating to the Greenland project is largely in currencies other than the companies’
functional currency, changes in the foreign exchange rates will affect the cost of exploration on
the Greenland project and may affect decisions regarding the quantum of exploration
completed in any period.
b.
Financial Instruments
i.
Net Fair Values
The aggregate net fair values of the financial assets and financial liabilities, at the balance
date, are approximated by their carrying value.
NOTE 26: COMPANY DETAILS
The registered office of the company is:
The principal place of business is:
Conico Ltd
Level 15,
Conico Ltd
Level 15,
197 St Georges Terrace
197 St Georges Terrace
Perth Western Australia 6000
Perth Western Australia 6000
45
DIRECTORS’ DECLARATION
In the opinion of the directors of Conico Ltd (the “Company”):
a.
b.
c.
the financial statements and notes set out on pages 29 to 45 and the Remuneration disclosures that are
contained in pages 25 to 26 of the Remuneration Report in the Directors’ Report, are in accordance with
the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
performance, for the financial year ended on that date; and
(ii)
complying with Australian Accounting Standards
Interpretations) and the Corporations Regulations 2001; and
(including
the Australian Accounting
complying with International Financial Reporting Standards as disclosed in Note 1.
(iii)
the remuneration disclosures that are contained in pages 25 to 26 of the Remuneration Report in the
Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Non-Executive Chairman and Chief Financial Officer for the financial year ended 30 June 2022.
This declaration is made in accordance with a resolution of the Board of Directors.
Gregory H Solomon
Chairman
Dated this 29th day of September 2022
46
Independent Auditor’s Report to the Members of Conico Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Conico Limited (“the Company”) and its subsidiaries (“the Group”),
which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for
the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material uncertainty relating to going concern
Without modifying our opinion, we draw attention to Note 1 of the financial report, which indicates that the
Group will require further funding in the next twelve months from the date of this report to fund its planned
operating costs. These conditions, along with other matters as set forth in Note 1, indicate the existence of a
material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern
and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course
of business.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
47
Key audit matter
How our audit addressed the key audit
matter
Capitalisation of exploration and evaluation
assets
Refer to Note 10 (Exploration and evaluation
assets)
procedures
Our
evaluating
focused
management’s assessment of the exploration and
evaluation asset’s carrying value. These procedures
included, amongst others:
on
and
As at 30 June 2022 the carrying value of
assets was
Exploration
$28,939,207 (2021: $22,272,897). The Group’s
accounting policy in respect of exploration and
evaluation assets is outlined in Note 1e.
evaluation
This is a key audit matter due to the fact that
significant judgement is applied in determining
and
whether
the
evaluation
recognition criteria in terms of AASB 6 Exploration
for and Evaluation of Mineral Resources.
capitalised
exploration
to meet
continue
assets
the
▪
▪
▪
verifying whether the rights to tenure of the
area of interest remained current at balance
date;
obtaining evidence of the future intention for
the area of interest; and
obtaining an understanding of the status of
ongoing exploration programs for the area of
interest.
We also assessed the appropriateness of the
accounting treatment and disclosure in terms of
AASB 6.
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
48
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
▪
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
▪
▪
▪
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
▪ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the Group financial report. We are responsible for the
direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
49
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 27 of the Directors’ Report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Conico Limited for the year ended 30 June 2022 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
29 September 2022
50
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
1. Shareholding as at 13 September 2022
a. Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number of
Shareholders
79
62
184
1,555
1,281
3,161
b.
The number of shareholders that held in less than marketable parcels at 13 September 2022 was 344.
c.
The names and relevant interests of the substantial shareholders listed in the holding company’s register
as at 13 September 2022 are:
Shareholder
Tasman Resources Ltd
d. Voting Rights
Number of Ordinary shares
115,852,963
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
e
20 Largest Shareholders — Ordinary Shares
Name
1.
2.
3.
Bnp Paribas Nominees Pty Ltd Acf Clearstream
Tasman Resources Ltd
Bnp Paribas Nominees Pty Ltd
4. March Bells Pty Ltd
5. Arkenstone Pty Ltd
6. Mr Thomas Abraham-James
7. Citicorp Nominees Pty Ltd
8. Mr Raymond Carroll
9.
Red Eight Pty Ltd
10. Tadea Pty Ltd
11. Norman & Megan Parker < Parker Superfund A/C>
12. Custodial Services Ltd
13. Mr Le Zhao
14. Bnp Paribas Nominees Pty Ltd
15. National Nominees Ltd
16. Mr Anthony Ford
17. Apostman Superannuation Pty Ltd
18. Mr Peter Richards
19. Comsec Nominees Pty Ltd
20. Mr Guy + Mrs Le Page
Number
Shares Held
% of Issued
Capital
149,386,708
115,852,963
56,005,118
42,891,503
34,026,311
28,843,795
23,206,138
21,000,000
19,833,334
19,833,334
17,435,000
16,400,000
16,319,298
16,195,090
14,153,793
13,000,027
11,666,667
9,952,500
8,910,793
8,793,118
10.27%
7.96%
3.85%
2.95%
2.34%
1.98%
1.60%
1.44%
1.36%
1.36%
1.20%
1.13%
1.12%
1.11%
0.97%
0.89%
0.80%
0.69%
0.61%
0.61%
643,705,490
44.24%
51
e
20 Largest holders — CNJO Options
Name
1.
Joarch Jagia Investments Pty Ltd
2. Mr Raymond Carroll
3.
4.
5.
Peloton Capital Pty Ltd
Tasman Resources Ltd
Berenes Nominees Pty Ltd
6. Mr Matthew Torenius & Mr Tuomo Torenius
7. Wayne Dunlop Superannuation Pty Ltd
8. March Bells Pty Ltd
9.
Budworth Capital Pty Ltd
10. M1nt Property Pty Ltd
11. Waterbeach Investments Pty Ltd
12. As & Jr Libbis Pty Limited
13. Mr Anthony Ford
14. Mr Michael Hunt & Mrs Lynne Hunt
15. Mrs Dimitroula Zaverdinos
16. Arkenstone Pty Ltd
17. Rosherville Pty Ltd
18. Mr Sean Shepperson
19. Mr Barry Dunlop
20. Mr Roger Blake & Mrs Erica Blake
Number
Shares Held
% of Issued
Capital
14,000,000
12,000,000
10,500,000
8,275,212
4,000,000
3,250,000
3,200,000
3,063,679
3,000,000
3,000,000
2,800,000
2,587,500
2,500,027
2,500,000
2,500,000
2,430,451
2,272,714
2,267,962
2,029,694
2,000,000
6.71%
5.75%
5.03%
3.97%
1.92%
1.56%
1.53%
1.47%
1.44%
1.44%
1.34%
1.24%
1.20%
1.20%
1.20%
1.17%
1.09%
1.09%
0.97%
0.96%
88,177,239
42.28%
2. Unquoted Securities – Options as at 13 September 2022
Holder Name
Date of Expiry
Exercise Price
Number on
issue
Number of
holders
Thomas Sant
3 May 2023
Various
Various
Various
Various
Various
Various
21 September 2023
24 November 2023
15 January 2024
20 January 2024
30 September 2024
30 November 2024
$0.016
$0.022
$0.04
$0.04
$0.07
$0.04
$0.10
1,000,000
1,000,000
6,000,000
2,300,000
75,496,307
10,000,000
33,500,000
126,296,307
1
2
6
2
101
2
77
191
52
TENEMENT SCHEDULE
Number
Interest %
Location
E63/1790
P63/2045
E63/1267
R63/4
G(A)63/93
M(A)63/669
M(A)63/670
MEL 2017/06
MEL-S 2019/38
MEL 2020/64
MPL 2019/39
MEL-S 2021/24
50
50
50
50
50
50
50
100
100
100
100
100
WA
WA
WA
WA
WA
WA
WA
Greenland
Greenland
Greenland
Greenland
Greenland
53