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Annual Report | CORPORATE DIRECTORY
PRINCIPAL PLACE OF BUSINESS
& REGISTERED OFFICE
Level 2, 8 Richardson Street, West Perth, WA 6005
STOCK EXCHANGE LISTING
Primary listing: Australian Securities Exchange
ASX Code: CY5
CONTACT INFORMATION
Phone: +61 8 6118 1627
Email: info@cygnusmetals.com
Website: www.cygnusmetals.com
AUSTRALIAN BUSINESS NUMBER
80 609 094 653
DIRECTORS
Mr Kevin Tomlinson
Non-Executive Chairman
Mr David Southam
Managing Director
Mr Michael Naylor
Non-Executive Director
Mr Michael Bohm
Non-Executive Director
SHARE REGISTER
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Tce, Perth WA 6000
Phone: : +61 8 9323 2000
+61 3 9415 4000 (Outside Australia)
+61 3 9473 2500
Fax:
BANKERS
National Australia Bank
100 St Georges Tce, Perth WA 6000
SOLICITORS
Hamilton Locke
Central Park, Level 48
Mr Raymond Shorrocks Non-Executive Director
152-158 St Georges Tce, Perth WA 6000
JOINT COMPANY SECRETARIES
Ms Maddison Cramer
Mr Carl Travaglini
AUDITORS
Ernst & Young
11 Mounts Bay Road, Perth WA 6000
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Annual Report | CONTENTS
Corporate Directory
Chairman & Managing Director’s Message
Investment Highlights
Operations Review
Directors’ Report
Annual Mineral Resource Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit and Loss and
Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Shareholder Information
Schedule of Tenements
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Annual Report | CHAIRMAN &
MANAGING DIRECTOR’S MESSAGE
Dear Fellow Shareholder,
We are pleased to present the 2023 Annual Report for
Cygnus Metals Limited (ASX: CY5), our first since becoming
Cygnus’ Chairman and Managing Director in April 2023
and February 2023 respectively. We take this opportunity
to reflect on a year that saw our Company continue to
uncover the potential of its expansive portfolio of lithium
exploration projects in Canada, as well as making a new
clay-hosted rare earths discovery at our Bencubbin
Project in Western Australia.
Pegasus consists of two parallel outcrops measuring
75m and 65m long respectively and up to 50m wide. We
have commenced drilling this discovery, encouraged
by earlier sampling which returned results up to 6.6%
Li2O. Pegasus is a priority target, and we want to test its
strike and depth extent, aiming to expand the footprint
of mineralisation at surface. Post financial year we
announced thick visual intercepts of spodumene and are
awaiting assays.
The lithium sector has been subject to tougher market
conditions over recent months compared to the highs
seen in 2022 but there is no doubt of lithium’s importance
to the global energy transition. While there is currently
oversupply in the market, we expect this to even out
over the next few years, which should tie in well with the
development timeline expected for our projects.
inaugural
We made rapid and exciting progress on our projects in
Quebec’s James Bay region – one of the world’s most
promising lithium districts – during the year. This included
inferred Mineral Resource
delivering an
Estimate (MRE) of 10 million tonnes at 1.04% Li2O at our
Pontax project, defined in just 12 months from acquisition,
at an exceptionally low discovery cost of A$0.55 per tonne
of Resource. Mineralisation remains open in all directions
at Pontax, and spodumene mineralisation was confirmed
up to 9km from the Pontax Central resource, which
demonstrates just how much exploration upside we have
at Pontax.
We achieved a breakthrough in initial activities at our new
Auclair project, with the discovery of three significant
spodumene-bearing pegmatite outcrops – Pegasus, Lyra
and Auriga.
We’ve defined the Auriga outcrop over a strike length
of 1.9km, with multiple parallel pegmatites intersected,
providing us with an exciting target to follow up in the
months to come.
Exploration at our Sakami project was somewhat
constrained in the second half of 2023 with wildfires
followed by early snowfall in the area, however we
completed some sampling which will help us shape
exploration plans in 2024.
High-grade clay-hosted rare earth element (REE)
mineralisation at our Bencubbin project has continued
to grow, now extending over 22km in length and nearly
3km wide. We have received results up to 7,243 parts per
million (ppm) total rare earth oxides (TREO) from drilling,
confirming both the high-grade nature and substantial
size of this deposit, which appears to be close to surface.
We have commenced initial metallurgical test work with
ANSTO, the Australian Nuclear Science and Technology
Organisation, in the first testing program of its kind
undertaken in this mostly unexplored region of Western
Australia.
We are well funded to continue our exploration programs
in Canada and Australia through 2024, finishing 2023 with
a cash balance of $9.3 million. We thank our Shareholders
who have continued to share in our journey through the
year, and particularly those who supported our capital
raising activities, including C$7.0m raised via Canadian
flow-through share provisions and a A$3.0m Share
Placement. With this strong financial position, we will be
able to build on our success in 2023, With outstanding
opportunities to deliver value for our Shareholders
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Annual Report | throughout the year ahead.
We thank our Board and management team for their
efforts and unwavering commitment over the past 12
months, as we have continued to explore and mature
our exciting project portfolio. Our team has considerable
experience in resource discovery and project delivery,
and we are confident we can achieve our goals in 2024
as our projects continue to take shape.
We look forward to your continued interest and support
through the year to come as Cygnus continues its strong
news flow and delivery of exploration milestones.
Kevin Tomlinson
Non-Executive Chairman
Cygnus Metals Limited
David Southam
Managing Director
Cygnus Metals Limited
| 5
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Annual Report | INVESTMENT HIGHLIGHTS
MAIDEN RESOURCE
Maiden Inferred Resource1 of 10.1Mt @ 1.04%
Li2O achieved at Pontax in just over a year since
acquisition of the project
Establishing Cygnus in James Bay
GROWTH OF LEADERSHIP TEAM
Growth of in-country leadership team with the
addition of:
Non-Executive Chairman - Kevin Tomlinson
and Country Manager - Laurence Huss
PROJECT ACQUISITION
Three major projects in James Bay with
acquisition of Auclair and Sakami for a total
ground position of ~823km2
INVESTMENT IN DRILL BIT
Over 18,000m drilled at Pontax and Auclair in the
last 12 months and over 500 prospecting samples
collected
Establishes Cygnus as one of the largest ASX-
listed explorers in Quebec
Ongoing commitment to in-ground expenditure
MULTIPLE DISCOVERIES
Spodumene-bearing pegmatites discovered at
Pontax and Auclair with three discoveries made at
Auclair in the last field season
One of the most active ASX listed explorers in
James Bay
Plus, clay REE discovery in Western Australia
Annual Report |
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Annual Report |
OPERATIONS REVIEW
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Annual Report | 8
Annual Report | EXPLORATION - CANADA
Cygnus Metals Limited is exploring for lithium in the world-class James Bay lithium region of Quebec. The Company
has secured an extensive package of prospective greenstone belts covering 823km2, making it one of the largest
landholders in the region. Cygnus is focused on generating shareholder value by exploring the:
• Pontax Lithium Project (maiden resource published in August 2023)
• Auclair Lithium Project (significant new lithium discoveries from surface mapping)
• Sakami Project (an early-stage lithium exploration project in the La Grande greenstone belt which also hosts the
substantial Corvette Deposit)
Figure 1: Location of the Pontax, Auclair and Sakami Lithium Projects in relation to other significant lithium deposits
in the James Bay Area and major access routes through the region.2
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Annual Report | PONTAX LITHIUM PROJECT (51% CY5, EARNING UP TO 70%)
In July 2022, Cygnus announced it had entered into a binding agreement to acquire up to 70 percent of the Pontax
Lithium Project (“Pontax”) in Quebec, Canada.
Pontax is located in the prolific Superior Province of Quebec, within the James Bay region. Despite being one of the
most endowed lithium terranes in the world, minimal modern lithium exploration has been conducted there over the
past 20 years.
Advanced significant lithium projects of northern Quebec2 include:
• Abitibi Lithium Hub (119.1Mt @ 1.1% Li2O) operated by Sayona Mining Limited/
Piedmont Lithium Inc
• James Bay (110.2Mt @ 1.3% Li2O) operated by Arcadium Lithium Plc
• Corvette (109.2Mt @ 1.42% Li2O) operated by Patriot Battery Metals Inc
• Whabouchi (55.7Mt @ 1.4% Li2O) operated by Nemaska Lithium Inc
• Rose (34.2Mt @ 0.9% Li2O) operated by Critical Elements Lithium Corp
• Moblan (70.9Mt @ 1.2% Li2O) operated by Sayona Mining/SOQUEM Inc
In July 2023, Cygnus announced that it had earned 51% of Pontax by spending
C$4 million on exploration at the project in accordance with the first milestone
under the earn-in agreement with Stria Lithium Inc. Cygnus can earn up to 70%
of Pontax.
In August 2023, Cygnus published an inferred maiden Resource for Pontax of 10.1Mt at 1.04% Li2O (refer ASX release
dated 14 August 2023), making it just the fourth ASX-listed company in Quebec with a lithium resource after Arcadium
(ASX:LTM), Sayona (ASX:SYA) and Patriot Battery Metals (ASX:PMT).
This was the culmination of 11,328m of drilling over 5 months with the resource released only 12 months
following the Company’s acquisition of the project. Significant intersections from this drilling campaign
include;
• 23.4m @ 1.4% Li2O from 367.8m including 11.8m @ 1.9% Li2O and 2.9m @ 2.3% Li2O
• 16.5m @ 1.1% Li2O from 239.8m (including an interval of 6.0m @ 1.8% Li2O) and 4.3m @ 1.8% Li2O from
227.6m
• 13.3m @ 1.3% Li2O from 300.2m (including an interval of 3.7m @ 2.1% Li2O) and 5.7m @ 1.4% Li2O from 194.3m
• 11.1m @ 1.2% Li2O from 146.3m (including 2.5m @ 2.6% Li2O), 3.6m @ 1.4% Li2O from 65.6m & 6.3m @ 1.0%
Li2O from 94.9m
PONTAX BACKGROUND
Geology and Mineralisation
Pontax is located in the Archean Superior Province of the Canadian Shield proximal to the Causabiscau shear zone that
separates the La Grande and Nemiscau Subprovinces. The Causabiscau shear zone is a major NE-SW deep-seated
regional structure that is 50 to 200m wide and over 160km long.
Pontax sits within a supracrustal sequence made up of mafic volcanics and metagreywackes known as the Chambois
Greenstone Belt located on the northern edge of the La Grande Subprovince. This belt wraps around the southern
margin of the largely felsic intrusive block of the Nemiscau Subprovince to link up with the Lower and Middle
Eastmain Greenstone Belt. The central Nemiscau Subprovince felsic block includes multiple granitoids (including
the Kapiwak Pluton) considered to be a post tectonic intrusion, likely younger than 2.697 Ga. The Kapiwak pluton
is interpreted to be the major source of lithium-bearing fluids in the region. The Chambois Greenstone Belt trends
north-east and has been metamorphosed to upper greenschist to amphibolite facies.
The Central Pontax Pegmatite Swarm is hosted in multiple parallel dykes which individually are up to 15m thick. The
pegmatites of the Central Pontax Swarm are LCT type pegmatites with high amounts of the lithium bearing mineral
spodumene, which in places can reach up to 40% of the rock mass.3 The spodumene forms aggregate crystal masses
with individual crystals up to 40cm in length, characterised by a light green colour. Spodumene is the only known
lithium bearing mineral hosted in the pegmatites at Central Pontax.
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Annual Report | Location and Infrastructure
Pontax is well situated in the emerging James Bay territory in northern Quebec, which is the focus of significant
investment from the Quebec government under Quebec’s “Plan Nord” economic development strategy that offers
significant tax incentives for mining companies to invest in and explore the province’s vast northern mineral wealth.
Pontax is situated just 4km off the James Bay Road (State Route 109) which connects Matagami, 350km to the south, to
the village of Radisson, 240km to the north. Matagami has both an airport and major railway which connects directly
to major infrastructure throughout North America. Major development projects surround Pontax including James
Bay, Rose and Whabouchi which only enhances the viability of commercial production from the area with continued
investment from major lithium companies.
In addition, Quebec is strategically well-positioned regarding the critical transitioning energy and e-mobility markets
in Europe and the United States and boasts excellent infrastructure, including low cost and low carbon electricity
through Hydro-Quebec.
Metallurgy
Two series of preliminary metallurgical test work, aimed at demonstrating the amenability of the Pontax pegmatites
to standard beneficiation techniques, were carried out in 2015/2016 at SGS laboratories in Lakefield, Ontario.3 Samples
for variability and bulk testing were largely obtained from channel sampling of near surface and outcrop pegmatites
from within the identified spodumene bearing zones.
The first test series utilised the recognised heavy liquid separation (“HLS”) technique to test the response to a more
economic gravity process flowsheet. These tests indicated 6% Li2O concentrates, at a mass yield of 10%, could be
produced after crushing to either 9.5mm or 6.3mm.
Mineralogical examination of the ore by x-ray diffraction (XRD) confirmed the main lithium bearing mineral was
spodumene, while physical testing confirmed the mineralisation was of medium hardness and it was further
demonstrated that overall lithium recovery may be increased by flotation of the fine material.
In the second test series, a bulk sample of 14 tonnes with a head grade of 1.48% Li2O, was processed through a pilot
scale dense medium separation plant (DMS) and flotation facilities and not only confirmed the findings of the first test
series but indicated an improved performance of 84% overall lithium recovery into 6% Li2O concentrates.
The program also included a sighter test on the amenability of the spodumene concentrates to downstream production
of lithium carbonate or hydroxide with almost 100% conversion of the spodumene to the acid soluble version being
achieved under standard conditions of heating to 1050°C for 30 minutes.
The results reported from these tests and the manner in which they were performed have provided Cygnus with insight
into suitability of the Pontax pegmatites to economic recovery.
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Annual Report | COMPLETION OF PONTAX MAIDEN RESOURCE DRILLING
Exploration has progressed rapidly since acquisition in July 2022 with completed geophysics, LiDAR, high resolution
orthophotography and mapping culminating in the completion of an 11,328m drill program.
In April 2023, Cygnus completed its maiden drill program at Pontax with 38 holes drilled for 11,328m. The program was
completed using up to three diamond rigs with access through a 37km ice road from the highway to the main Pontax
Central drill site. The program was designed to systematically step out from known mineralisation at Pontax Central,
an extensive spodumene-bearing pegmatite swarm which outcrops over 700m of strike. Holes were drilled on 100m
spaced sections stepping out 50m to 100m below existing mineralisation.
The drilling confirmed Pontax Central to be a significant stacked spodumene-bearing pegmatite system which is
continuous and open from surface down to 300m vertical depth. The pegmatites remain open along strike, extending
over 700m before being concealed beneath shallow cover.
Drilling results also confirmed that mineralisation at Pontax Central is hosted in a sub-vertical, spodumene-bearing
pegmatite swarm with multiple pegmatite dykes over a zone up to 75m wide. Individual pegmatite dykes returned
up to 23.4m intersections, with multiple pegmatites intercepted in each drillhole. In drillhole 975-22-027, multiple
intersections returned a cumulative thickness of 36.3m of spodumene-bearing pegmatite.3
Assay results3 include:
• 23.4m @ 1.4% Li2O from 367.8m including 11.8m @ 1.9% Li2O and 2.9m @ 2.3% Li2O (DDH975-23-040);
• 16.5m @ 1.1% Li2O from 239.8m (including an interval of 6.0m @ 1.8% Li2O) and 4.3m @ 1.8% Li2O from
227.6m (DDH975-22-027);
• 13.3m @ 1.3% Li2O from 300.2m (including an interval of 3.7m @ 2.1% Li2O) and 5.7m @ 1.4% Li2O from
194.3m (DDH975-22-028);
• 11.1m @ 1.2% Li2O from 146.3m (including 2.5m @ 2.6% Li2O), 3.6m @ 1.4% Li2O from 65.6m & 6.3m @ 1.0%
Li2O from 94.9m (DDH975-22-029);
• 5.5m @ 1.4% Li2O from 178.7m & 5.9m @ 1.0% Li2O from 262.0m (DDH975-22-032); and
• 3.3m @ 2.8% Li2O from 107m (including 1.0m @ 5.0% Li2O) & 4.2m @ 0.9% Li2O from 124.4m (DDH975-22-
026).
Results include high grade intervals of up to 5.0% Li2O from individual samples. These high-grade results are associated
with densely concentrated centimetric spodumene mineralisation rather than large individual crystals, resulting in a
representative and even grade distribution.
These results are supported by significant historical intersections3 which include:
• 9.0m @ 1.7% Li2O from 46.9m
• 15.6m @ 1.6% Li2O from 83.9m;
• 8.0m @ 2.6% Li2O from 19.4m; and
• 13.0m @ 1.4% Li2O from 36.0m
The assays demonstrate the continuity from surface of mineralisation through multiple stacked pegmatites to 300m in
vertical depth (previously 230m).
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Annual Report | 13
Annual Report | Figure 2: Cross section though Pontax Central looking towards the NE, showing both shallow historic
drillholes and the recent deeper drillholes completed by Cygnus.3 Observed geology illustrating multiple
spodumene-bearing pegmatites focused over a 75m wide zone. The deepest drilling on the project to
date steps out over 100m from existing drilling with mineralisation remaining open in all directions.
MAIDEN RESOURCE
In August of 2023, Cygnus published an inferred maiden Resource for Pontax of 10.1Mt at 1.04% Li2O (refer ASX release
dated 14 August 2023). This was based only on the central area of the known mineralisation. The mineralisation is open
in all directions and spodumene has been confirmed up to 9km from the Pontax Central resource, highlighting the huge
upside potential at Pontax.
Table 1: Maiden Mineral Resource Estimate for Pontax Central.
Resource Category
Cut-off Grade
(Li2O)
Tonnes (Mt)
Grade (Li2O)
Contained Li2O
(Tonnes)
Grade (Ta2O5 ppm)
Inferred
0.5%
10.1
1.04%
105,280
74.79
Table 2: Pontax Resource grade and tonnage reporting above a range of cut-off grades.
Cut-off Grade (Li2O)
0.5%
0.7%
1.0%
Tonnes (Mt)
10.1
9.3
5.2
Grade (Li2O)
1.04%
1.07%
1.23%
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Grade (Ta2O5 ppm)
74.79
74.46
75.15
Annual Report |
The Resource was defined in just 12 months from project acquisition at an exceptionally low discovery cost of A55c per
tonne of Resource and with only 11,328m of drilling. It also made Cygnus just the fourth ASX-listed company in Quebec
with a lithium resource after Arcadium (ASX:LTM), Sayona (ASX:SYA) and Patriot Battery Metals (ASX:PMT).
The MRE is defined over 1.2km of strike, demonstrating significant growth through recent exploration from a previously
defined strike length of 700m. Mineralisation remains open in all directions with significant upside for immediate
resource growth through step out drilling. On a regional scale, there is huge exploration upside with recent re-
sampling of historic drill core on recently acquired ground, confirming spodumene mineralisation up to 9km from the
Pontax Central Resource. Limited historic drilling has been completed along this trend to date, much of which is under
shallow cover.
Immediate Resource Growth Potential
The Pontax Central Resource remains open in all directions and the immediate focus of the Company is to expand
the current known mineralisation through step out drilling along strike. Recent exploration has enabled the team to
successfully define the continuation of mineralisation beneath shallow cover, extending the Pontax Central pegmatite
swarm to 1.2km of strike, 50% of which does not outcrop at surface.
Figure 3: Mineralisation at Pontax Central is completely OPEN with limited drilling along a highly prospective
trend.3 Spodumene mineralisation now confirmed over 9km. Photograph from hole PX-07-008.
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Annual Report |
Regional Upside
Pontax continues to demonstrate significant upside potential on a regional scale with highly fractionated LCT pegmatites
confirmed over 25km and spodumene mineralisation confirmed over 9km of the belt.
The recent acquisition of highly prospective ground to the northeast of Pontax Central increased the Pontax Project
to 182km2 and provides 20km of continuous strike length of the Chambois greenstone belt. Recent relogging of
available historic drill core on the recently acquired ground confirmed spodumene mineralisation to be present in LCT
pegmatites returning up to 0.6% Li2O and 308ppm Ta2O5 (refer to ASX release dated 14 August 2023). This confirms the
significant scale of the LCT pegmatite system at Pontax with spodumene mineralisation now confirmed up to 9km from
the mineralisation at Pontax Central. Importantly, minimal exploration has been completed along this trend with only
5 drillholes and drill gaps of up to 6km.
During the winter campaign, five diamond drill holes were completed to the north-east of Pontax Central, stepping
out up to 1.6km from the MRE in an area with no outcrop. This was blind drilling based on conceptual targets using the
high-resolution magnetics to target the same prospective trend that hosts the mineralisation at Pontax Central. This
drilling successfully intersected multiple highly fractionated LCT pegmatites, up to 11.1m wide with high grade tantalum
mineralisation. This includes an interval of 11.1m @ 92.2ppm Ta2O5 including 1m @ 243ppm Ta2O5 (refer to ASX release
dated 14 August 2023).
Tantalum mineralisation alongside low K:Rb ratios indicate highly fractionated pegmatites and a favourable environment
for lithium mineralisation. With the lack of exploration along this trend and evidence of a large unexplored LCT pegmatite
system, there is immense potential for further discovery through focussed exploration.
Figure 4: The 182km2 Pontax Project with significant scale for further discovery.4 In the same geological
setting as Arcadium’s James Bay Project (110.2Mt @ 1.3% Li2O),2 close to the major sealed road and hydro
Quebec powerlines. Photograph from hole PX-07-008.
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Annual Report | Project Development Strategy
To align with strong global interest in James Bay lithium, the Company initiated its development strategy at Pontax,
reflecting its high level of confidence in the project. This work commenced with both environmental baseline
assessments and geochemical studies through highly-regarded engineering consultants BBA Inc.
BBA Inc. was engaged to prepare an Environmental and Social Scoping Report (“ESSR”), which is the initial step
towards completing environmental baseline studies on the path to a Preliminary Economic Assessment (“PEA”). An
initial geochemical assessment of the ore and waste rock will also be completed. This is a key requirement for mine
permitting and plays an integral role in supporting mine planning and development at the PEA level.
These early-stage studies will be part funded by an approved grant of up to C$275,000 from Quebec’s Ministry of
Energy and Natural Resources (“MERN”). The grant was awarded as part of the Government of Quebec’s program to
support mineral exploration for minerals needed for green and renewable energy technologies as outlined in its 2020-
25 Plan for the Development of Critical and Strategic Minerals.
The location of Pontax provides a distinct advantage and significantly increases the development prospects. Not only
is the project located just 4km from a main highway with Hydro-Quebec power infrastructure running through the
project, but it also sits in central James Bay just 30km from Arcadium’s James Bay deposit. James Bay is currently in
development stage with federal ESIA approval, ongoing engineering works and completion of Hydro-Quebec powerlines
installed to site.
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Annual Report | 18
Annual Report | ONGOING EXPLORATION
Further exploration campaigns are planned at Pontax, with the key focus
being to utilise diamond drilling for both resource growth and further
discoveries.
Alongside drilling, the Company is also planning further airborne magnetics,
LiDAR, and high resolution orthophotography to assist with target generation
on the wider Pontax Project which now sits at 182km2. These techniques
have been highly effective in identifying outcrop, both exposed and under thin
cover amid dense vegetation and marshland. The surveys will be followed by
on ground field teams conducting mapping and prospecting in areas which
have never been a focus of lithium exploration in the past.
PONTAX LAND ACQUISITION
In February 2023, Cygnus significantly increased its land position at the
Pontax Lithium Project to 182km2.
The additional land, comprising 70 individual claims covering 40km2,
was acquired from TSXV-listed Sirios Resources Inc. (“Sirios”) and sits
immediately north-east of, and adjacent to, Cygnus’ Pontax Project. The
acquisition provides Cygnus a further ~9km of continuous strike length (now
20km continuous) of the highly prospective Chambois Greenstone Belt which
hosts the spodumene-bearing pegmatites at Pontax, taking the Company’s
total strike length to ~44km.
Exploration by previous explorers has focused on silver-lead-zinc anomalies
to the south-east of the greenstone belt with no lithium exploration recorded
on the property.
As with the Pontax project area, much of the newly acquired property is
covered by shallow glacial cover and thick vegetation with very little
outcrop. This is particularly notable along the trend of the greenstone belt
and provides potential for utilising modern geophysics to target pegmatites
under cover. An initial program planned for Q3, 2023 comprising magnetics
and LiDAR will be carried out to assist with regional targeting and follow up
reconnaissance mapping.
Transaction Details
On 17 February 2023, Cygnus announced the acquisition of 100% of the
additional ground through an outright purchase from Sirios comprising:
An upfront payment of C$1.2m in cash plus 750,000 shares (50% of the shares
escrowed for 12 months);
• Milestone payment 1: On defining a JORC Resource of 4 million tonnes
of Li2O (minimum grade of 0.8%), a further payment of C$1.0 million plus
500,000 shares; and
• Milestone payment 2: On defining a JORC Resource of 6 million tonnes
of Li2O (minimum grade of 0.8%), a further payment of C$2.0 million plus
500,000 shares.
The project has an existing 0.5% net smelter return royalty, with the right to
buy back half for C$200,000. Cygnus has also entered into a Royalty Deed
with Sirios for a 1.5% net smelter return royalty payable on base metals and
precious metals extracted from the Sirios tenements. Cygnus has the right
to buy half the royalty back for C$600,000.
The transaction successfully closed early April 2023.
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Annual Report | Figure 5: Showing the acquisition north-east of Pontax, increasing strike length of project to 44km2 (refer ASX
release dated 17 February 2023).
AUCLAIR LITHIUM PROJECT (100% CY5)
In early 2023, the Auclair Lithium Project (“Auclair”) was added to the Cygnus lithium project portfolio in James
Bay. It was acquired in February 2023 from Osisko Development Corp (“Osisko”). The initial acquisition from Osisko
covered 25.5km2 and during the year the Company moved rapidly to expand the project to 417km2 through two separate
acquisitions (“Auclair Extension”) and the staking of vacant ground thereby providing a dominant land position across
the highly prospective Eastmain greenstone belt.
No lithium exploration or analysis has ever been conducted at the project, with previous work focused on gold with a
total of 12 diamond drill holes completed on the property for 3,173m up 2010. As such, Cygnus is the first company to
complete lithium exploration across the project.
A review of historical drill logs identified multiple unsampled pegmatite intervals within the historic drillholes from
Auclair. Subsequent validation and sampling identified spodumene mineralisation with an interval of 9.8m @ 0.8% Li2O
from 212.8m, including 5.1m @ 1.0% Li2O and 1m @ 1.2% Li2O from drillhole AC-2010-004 (refer to ASX release dated 28
February 2024).
The Auriga Discovery and Channel Sampling
In August 2023, the Company announced the discovery of a significant outcrop up to 80m long by 9m wide which is now
called Auriga. The outcrop was blind and covered by dense vegetation and located 1.1km to the southwest of the historic
intercept in drillhole AC-2010-004.
Subsequent sampling of the outcrop returned high grades of up to 6.5% Li2O from grab samples alongside high-
grade channel samples, demonstrating consistent grade distribution across the pegmatite (refer to ASX release
dated 19 October 2023). Channel sample results include:
• 4.3m @ 2.3% Li2O;
• 5.7m @ 1.7% Li2O;
• 4.6m @ 1.2% Li2O; and
• 3.6m @ 1.6% Li2O.
20
Annual Report | The high-grade results of up to 6.5% Li2O are associated with coarse grained spodumene mineralisation, which
includes individual crystals up to 50cm in length. The coarse grained spodumene forms in multiple sub parallel zones
forming centrally within the dyke. Significantly, results outside these zones also demonstrate consistent high-
grade mineralisation with all channel samples returning average grades of over 1.2% Li2O. The grade and quality of
the mineralisation seen to date at Auclair are highly encouraging and point towards a potential highly fertile system.
Figure 6: 1.9km of visual spodumene-bearing pegmatites intesected in the recent drilling.5 Plus results
from surface sampling return up to 6.5% Li2O. Refer to ASX release5 dated 22 May and 19 October 2023 for
historic and recent drillhole results.
2023 Auriga Drill Program
A diamond drill program was undertaken at Auclair between the months of August and October 2023. This program
aimed to follow up on spodumene mineralisation in historic diamond hole AC-2010-004 and the 90m long discovery
outcrop at Auriga. Diamond drilling covered 1.9km of strike along the Auriga trend with 28 holes drilled for 6,873m.
This drilling, which was conducted on a wide spacing of up to 400m, successfully intersected multiple parallel
spodumene-bearing pegmatites over the entire 1.9km strike length establishing that a significant mineralised
system is present at Auclair. Initial results (Refer to ASX release dated 10 January 2024) from this drilling
include:
• 13.9m @ 1.3% Li2O from 42.8m;
• 9.6m @ 1.4% Li2O from 61.3m; and
• 9.5m @ 1.4% Li2O from 217.3m
Most of these pegmatites are blind and concealed beneath shallow glacial overburden, which is widespread across the
Auclair Project. Recent success in drilling beneath cover provides encouragement to the Cygnus exploration team, and
also highlights the unknown potential of the project which may not be exhibited at surface. Further work is required
to understand the structural complexity of the area and how it fits into the bigger picture of the mineralised system at
Auclair.
21
Annual Report |
22
Annual Report | Pegasus and Lyra Discoveries
In October 2023, results were received from the initial prospecting and mapping campaign across the wider tenement.
These results from 70 rock chips highlight a highly fractionated pegmatite trend over 10km with low K/Rb ratios in the
southwest of the project area. As a result of this regional work the exploration team refocussed prospecting efforts in
this area which led to the discovery of the Pegasus and Lyra outcrops.
These discoveries significantly expanded the area of known spodumene mineralisation at Auclair to 6km of strike with
now three areas of known spodumene bearing outcrop at Auriga, Pegasus and Lyra.
The Pegasus discovery consists of two significant outcrops that sit side by side, separated by 15m of vegetation. The
southern outcrop has exposed dimensions 75m long by up to 50m wide while the northern outcrop is 65m in length by
up to 30m wide. Recent rock chip results from Pegasus include grades of 6.6% Li2O, 5.5% Li2O, 5.3% Li2O, 4.6% Li2O, 2.2%
Li2O, 1.8% Li2O, 1.5% Li2O, and 0.7% Li2O.3
The Lyra discovery is a single outcrop with exposed dimensions of 60m by 15m wide and is mostly covered by vegetation.
Stripping back the moss revealed zones of dense spodumene mineralisation which returned results from rock chips
of up to 6.7% Li2O and 2.0% Li2O.3
These recent discoveries continue to demonstrate the significant upside potential at Auclair, with a large fertile system,
high grades of up to 6.7% Li2O3 and now significant mineralised pegmatites up to 50m in width.
Figure 7: Rock chip samples returning up to 6.6% Li2O at the newly discovered Pegasus pegmatites at the Auclair Project.3
23
Annual Report | Figure 8: Illustrating mutiple spodumene-bearing pegmatites discoveries across 6km of strike with the Auriga,
Lyra and Pegasus outcrops. Results from Auriga over 1.9km of strike and open in all directions.3
24
Annual Report | Figure 9: Abundant coarse spodumene crystals from the Pegasus discovery.3
25
Annual Report | Figure 10: Over 1m long spodumene crystals from the Pegasus discovery.
Figure 11: Coarse grained spodumene crystals at the Lyra discovery. Sample 155790403 (6.7% Li2O).
26
Annual Report | Planned Exploration
Auclair will be the main focus of exploration for Q1 2024, with drilling to test both the Pegasus and Lyra targets. Drilling
will aim to test both the strike and depth extent of the mineralisation seen at surface, expand the mineralised footprint
and build an understanding of the dyke morphology and structural setting.
In addition, the Company will continue ongoing targeting work across the wider project area. This will include utilising
both geochemical and geophysical datasets. Recently, 257 till samples were taken across the high priority 10km
fractionation trend aiming to generate targets through glacial overburden. The Company will use the results of this
program in conjunction with the structural interpretation of the high-resolution magnetics to generate blind targets.
The structural interpretation of the Auclair project is being conducted by NewGen Geo, a consultancy specialising in
the application of contemporary geophysical techniques in exploration for lithium bearing pegmatites.
Location and Infrastructure
The Auclair property is ideally located just 80km northeast of the Nemiscau airport and 50km northeast of Whabouchi
(55.7Mt @ 1.4% Li2O), which is owned and operated by Nemaska Lithium.2 The property can be accessed all-year round
by all-weather roads and has Hydro Quebec high-voltage transmission lines running north-south through the project
area.
27
Annual Report | SAKAMI LITHIUM PROJECT (100% CY5)
In March 2023, Cygnus announced the acquisition of the Sakami Lithium Project (“Sakami”). Located in the La Grande
greenstone belt, one of the most prolific lithium districts in the world, Sakami is just 44km west of Patriot Battery Metals’
Corvette project and adjacent to Winsome Resources’ Cancet deposit. The project also has excellent infrastructure
with both Hydro Quebec powerlines and the Tran-Taiga highway running through the project area.
Following acquisition, the Company completed an initial desktop study at Sakami which revealed multiple pegmatite
targets visible in satellite imagery, with outcrops up to 140m long and 30m wide which have never been sampled. No
lithium exploration has ever been completed at Sakami. The only drilling undertaken on the property was for gold
and base metals in 1976 and comprised 5 diamond drill holes. The lack of targeted lithium exploration in this highly
prospective greenstone belt presents Cygnus with an exceptional opportunity to make the next significant discovery
in the region.
During FY2024 the Company completed a high resolution airborne magnetics survey alongside detailed LiDAR. The
results of these surveys will be used to generate additional structural targets.
The 2023 exploration field season was severely impacted by an exceptional wildfire season in Quebec. This resulted
in only a very short prospecting campaign which was completed at the end of October and curtailed due to early snow
across the project. During this 10-day campaign 110 samples were collected, results from this work will be used to
generate fractionation trends across the project and assist with targeted exploration.
During the 2024 field season, Cygnus plans to complete a prospecting and pegmatite sampling program.
Figure 12: Multiple pegmatite targets5 across the Sakami Project.3 Sakami is located just 44km from Patriot Battery
Metals’ Corvette Project and in the same greenstone belt.
TRANSACTION DETAILS
On 28 March 2023, Cygnus announced that it had entered into option agreements with 9219-8845 QC. Inc. (Canadian
Mining House) (“CMH”), Anna Rosa Giglio and Steve Labranche (together, the “Vendors”) to acquire the additional ground
comprised of two projects: Sakami and Auclair Extension (Beryl Property). The terms of these option agreements are
outlined below:
28
Annual Report |
Sakami Project
In order for Cygnus to earn a 100% interest (in all mineral rights) at Sakami, Cygnus will be required to pay the
Vendors C$300,000 in cash and issue 3,450,000 fully paid ordinary shares in Cygnus, in aggregate. In addition to the
above payments, Cygnus must incur exploration expenditure to the amount of C$1,000,000 within the first 36 months
of closing the Option Agreement.
The consideration is payable via the following stages, at the election of Cygnus (other than stage 1):
Option Stage
1. Within 5 business days following satisfaction of the last of the conditions prece-
dent (“Sakami Approval Date”)
2. The date that is 12 months from the Sakami Approval Date
3. The date that is 24 months from the Sakami Approval Date
4. The date that is 36 months from the Sakami Approval Date
TOTAL
Note: Subject to a 6-month voluntary escrow period from the issue date.
Cash
Shares
C$75,000
1,500,0001
C$75,000
C$75,000
C$120,000
C$300,000
900,000
600,000
450,000
3,450,000
Auclair Extension (Beryl Property)
In order for Cygnus to acquire a 100% interest in the project and all mineral rights, Cygnus will be required to pay the
Vendors C$395,000 in cash and issue 4,000,000 fully paid ordinary shares in Cygnus, in aggregate. In addition to the
above payments, Cygnus must incur exploration expenditure of the amount of C$1,000,000 within the first 36 months
following the closing of the Option Agreement.
The consideration is payable via the following stages, at the election of Cygnus (other than stages 1 and 2):
Option Stage
1. Within 5 business days following satisfaction of the last of the conditions prece-
dent (“Beryl Approval Date”)
2. The date that is 12 months from the Beryl Approval Date
3. The date that is 24 months from the Beryl Approval Date
4. The date that is 36 months from the Beryl Approval Date
TOTAL
Note: Subject to a 6-month voluntary escrow period from the issue date.
Cash
Shares
C$125,000
1,500,0001
C$75,000
C$75,000
C$120,000
C$395,000
900,000
1,000,000
600,000
4,000,000
The above acquisitions are subject to the Company obtaining shareholder approval for the stage 1 consideration shares
of the Sakami acquisition and stage 1 and 2 consideration shares of the Beryl acquisition, respectively, but if Cygnus
elects to proceed with the remaining option stages, the remaining consideration shares are intended to be issued
using the Company’s available placement capacity under ASX Listing Rule 7.1.
Cygnus will grant a 2% net smelter royalty on both the Sakami Project and the Auclair Extension Project, payable to
CMH and Anna Rosa Giglio in equal proportions. Completion occurred following receipt of shareholder approval at the
Company’s annual general meeting held in May 2023.
29
Annual Report | EXPLORATION - AUSTRALIA
Cygnus Metals’ Australian exploration activities are focused in the Southwest Terrane (SWT), an underexplored region
of highly prospective geology within the prolific Yilgarn Craton, Western Australia.
The Company has approximately 1,750km2 (100% Cygnus) of granted tenements covering interpreted and known
greenstone belts where previous explorers identified numerous prospects with widespread high grade, near surface
gold and/or base metals mineralisation.
Cygnus is actively exploring key prospective tenure for lithium as well as rare earth elements (REEs), nickel, copper,
gold and PGEs.
Figure 13: Cygnus current Australian tenure with background geology from GSWA mapped regional geology
(1:500,000)
30
Annual Report | BENCUBBIN PROJECT (100% CY5)
The ~800km² Bencubbin Project is located ~220km northeast of Perth and covers the Bencubbin Greenstone Belt, an
underexplored greenstone sequence extending for over 70km of strike and up to 5km in width. Greenstone belts such
as Bencubbin are highly prospective for gold, LCT pegmatites, nickel, VMS and REEs.
During 2023 two separate campaigns of air-core drilling were completed at the Bencubbin REE discovery which
continued to define mineralisation; this is now identified over 22km. Drilling campaigns in 2023 followed up on an initial
34-hole air core program drilled in December 2022 which led to the discovery of REEs at Bencubbin.
During 2023, 103 air core holes were drilled for a total of 4,543m. Results included;
• 79m @ 1,576ppm TREO from 32m including 8m @ 7,243ppm TREO;
• 40m @ 1,628ppm TREO from 8m;
• 19m @ 1,959ppm TREO from 4m including 4m @ 4,743ppm TREO;
• 25m @ 2,745ppm TREO from 52m, including 8m @ 5,617ppm TREO;
• 51m @ 1,108ppm TREO from 39m, including 14m @ 2,032ppm TREO; and
• 41m @ 1,219ppm TREO from 47m.
These results are in addition to results6 from drilling in late 2022 of;
• 23m @ 1,862ppm TREO from 12m including 12m @ 2,405ppm TREO;
• 34m @ 1,276ppm TREO from 8m including 4m @ 2,112ppm TREO ;
• 19m @ 1,541ppm TREO from 8m including 11m @ 1,960ppm TREO and 4m @ 2,356ppm TREO; and
• 25m @ 1,117ppm TREO from 32m including 9m @ 1,608ppm TREO.
To date a total of 137 holes for 5,125 metres have been completed at the Bencubbin REE discovery. Recent results
continue to identify thick clay profile which is mineralised in areas from close to surface and extends along the granite
margin over widths of up to 2.8km within the body.
The latest results have returned some of the highest grades seen to date with results up to 7,243ppm TREO but have
also significantly increased the scale of the mineralisation, extending it from a strike length of 4.5km to now greater
than 22km and still open.6 Importantly, the mineralisation continues to demonstrate enrichment above the entire
granite intrusion, which is believed to be the potential source of mineralisation.
Samples have been selected for an initial metallurgy program to be conducted through industry leader ANSTO Minerals,
the Australian Nuclear Science and Technology Organisation, which has extensive experience in REE processing.
These samples were selected from numerous drill-holes over the entire project, with a focus on variation down-hole
and regionally, in line with best practice guidelines from ANSTO Minerals. This program has been developed through
ANSTO to test the leachability of the rare earth and magnetic rare earth elements and is the first to be undertaken in
the Bencubbin area.
Over the recent past, ANSTO Minerals has consulted for an increasing number of clay-hosted REE projects, including
the Ionic Rare Earths (Uganda), Australian Rare Earths (South Australia) and Meteoric Resources (Brazil) projects.
Work on these projects has included early leaching/desorption
31
Annual Report |
Figure 14: Significant clay profile up to 79m developed over rare earth enriched granite.6
Mineralisation is high grade and near surface with very low stripping. Vertical exaggeration
x2.
Figure 15: Location of collars highlighted by grades displaying an interpreted enriched zone over the distInct
22km long magnetic anomaly.6 Interpreted red target area showing greater than 5m of clay development over
the granite. Dashed box highlights the initial discovery area, being the area previously announced with near
surface TREO results >1000ppm over 4.6km of strike and 2km width.
At Bencubbin North the Company completed 32 reverse circulation drillholes for 1,483m targeting auger anomalism
defined in 2022. The auger anomaly identified elevated geochemical signature of Li, Ta and Nb, typically associated
with LCT pegmatite mineralisation. Peak values of up to 152 ppm Li2O, 55 ppm Ta2O5 and 152 ppm Nb2O5, were identified
across two large coherent anomalies defined over 2.2km of strike, both proximal to late granite intrusions (refer ASX
release dated 30 May 2022).
Results from reverse circulation drilling in March 2023 identified only simple pegmatites alongside some large tantalum
enriched granites which are thought to be the source of the geochemical anomalism. No further follow up drilling is
planned at this stage.
32
Annual Report |
SNAKE ROCK PROJECT (100% CY5)
The Snake Rock Project (E70/4911, E70/5098, E70/4990, E70/6386 & E70/6385) is located 230km east of Perth, Western
Australia in the South West Terrane of the Yilgarn Craton. The project covers 448km² of an area considered highly
prospective for Ni, Cu and PGEs; covering the south eastern extent of the same mobile belt which hosts the Julimar
Ni-Cu-PGE discovery (ASX:CHN). The project is also prospective for gold mineralisation, located just 30km south west
and along the same structural lineament as the 700Koz Tampia gold deposit (ASX:RMS).
In March 2023, the Company completed a five-hole reverse circulation (RC) drill programme for 855m which was
co-funded by the West Australian Government Exploration Initiative Scheme. Drilling was designed to target the
intersections of the regional gravity high with northeast and northwest trending magnetic anomaly ridges.
Although no material results were received from the drill assays, geochemical analysis proved the existence of a
mafic-ultramafic layered intrusion with coincidental magnetic and gravity anomalies. A total of 8 samples of both
drill core and rock chips from EIS drilling were sent for petrographic thin section analysis with one sample for XRD
analysis. The conclusions from this work indicated the presence of metamorphosed ultramafic rocks and fractionated
mafic to ultramafic samples in the Snake Rock area.
Due to the lack of historical exploration for PGEs and Ni-Cu there remains excellent potential to identify a substantial
layered intrusion containing either (high Cr) chromite reefs, economic PGE’s and/or nickel-copper sulphides beneath
a cover of Cenozoic and Quaternary regolith.
During 2023 the Company expanded the Snake Rock project with the addition of three new tenements and 19 blocks of
E70/5098 were voluntarily surrendered on areas which were deemed too difficult to explore, including reserves and
salt lakes.
Figure 16: Map of the Snake Rock Project (E70/4911, E70/5098, E70/4990, E70/6386 & E70/6385).
Location of the EIS drilling in the north is shown with black collar points.
33
Annual Report | CORPORATE
NAME CHANGE TO “CYGNUS METALS LIMITED”
The Company’s change of name from Cygnus Gold Limited to Cygnus Metals Limited was implemented in February
2023 following official confirmation from the Australian Securities and Investments Commission.
The new name more accurately reflects the diversification of the commodities for which the Company is now actively
exploring, in particular lithium in the James Bay region of Canada.
PLACEMENTS
C$7,000,000 Flow-Through Share Placement
In August 2023, the Company raised approximately C$7,000,000 (A$8,094,402) through the issue of 18,934,273 fully
paid ordinary shares at an issue price of C$0.37 (A$0.4275) per share (“Flow-Through Shares”) as Canadian “flow-
through shares”, which provide tax incentives to those investors for expenditures that qualify as flow-through mining
expenditures under the Income Tax Act (Canada). The Flow-Through Shares were issued at a premium to market
pursuant to the Canadian flow-through shares regime. The term “flow-through share” is a defined term in the Income
Tax Act (Canada) and is not a special type of share under corporate law.
Pursuant to a block trade agreement between PearTree Securities Inc (“Peartree”), Canaccord Genuity (Australia)
Limited (“Canaccord”) and Euroz Hartleys Limited (“Euroz”), Canaccord and Euroz facilitated the secondary sale of the
Flow-Through Shares acquired by PearTree clients under the Flow-Through Share Placement to sophisticated and
professional investors in Australia and certain other countries by way of a block trade at A$0.225 per Placement Share.
A cleansing prospectus under section 713 of the Corporations Act 2001 (Cth) was issued in connection with the Flow-
Through Share Placement to facilitate secondary trading of the Flow-Through Shares.
The tax benefits associated with the Flow-Through Shares are available only to the original investors (who are Canadian
residents) and not to any other person who acquires the Flow-Through Shares through the on-sale or transfer of
those Flow-Through Shares.
A$3,000,000 Traditional Placement
In August 2023, Cygnus completed an additional placement to sophisticated and professional investors to raise
approximately A$3,000,000 (before costs) through the issue of 13,333,333 fully paid ordinary shares in the Company at
an issue price of A$0.225 per share.
Funds raised from the Flow-Through Share Placement and Traditional Placement have been and will be used for:
• Exploration activities at all three core Canadian Lithium Projects of Pontax, Auclair and Sakami in 2024; and
• General working capital and transaction costs
BOARD AND MANAGEMENT CHANGES
David Southam appointed Managing Director
On 13 February 2023, David Southam commenced as Managing Director, having previously been appointed Non-
Executive Director in November 2022.
Mr Southam’s distinguished career as a senior executive of listed resources and industrial companies culminated in
his appointment in 2019 as Managing Director of Mincor Resources (ASX: MCR), where he led that Company’s highly
successful return to the ranks of Australian nickel producers within a three-year period, overseeing a major greenfields
discovery, resource definition, the completion of off-take arrangements, feasibility studies, project financing and
construction of the Kambalda Nickel Operations, nearly all of which was completed during a global pandemic. During
Mr Southam’s tenure, the market capitalisation of Mincor increased from circa $70 million to $1 billion.
Importantly, he also has significant experience in battery metals through his non-executive director role at Kidman
Resources, which was ultimately acquired by Wesfarmers, and through his work over a decade in the nickel industry.
34
Annual Report | Michael Naylor board position change
On 1 March 2023, Michael Naylor transitioned from Executive Director to Non-Executive Director, following David
Southam’s appointment as Managing Director.
Kevin Tomlinson appointed Independent Non-Executive Chairman and Raymond Shorrocks board position change
On 3 April 2023, Kevin Tomlinson joined the Board as Independent Non-Executive Chairman, replacing Raymond
Shorrocks who transitioned to Non-Executive Director.
Mr Tomlinson is a highly regarded Director who has led numerous Australian and Canadian resources companies
from the early-exploration phase through to production and cashflow. As a Canadian resident, Kevin has many years
experience of working with local stakeholders, institutions, and capital markets, at a time when Cygnus is rapidly
growing its footprint in James Bay, Quebec. Kevin has more than three decades’ experience in major discoveries,
exploration and resource growth, mine development and financing of mining projects globally. He has also played
leading roles in many successful mergers and acquisitions, including leading ASX/TSX-listed Cardinal Resources Ltd’s
C$587 million sale to Shandong Gold as former Chair of that entity.
He is currently Non-Executive Chairman of ASX300 company Bellevue Gold Limited (ASX: BGL) and FireFly Metals Ltd
(ASX:FFM), and a Non-Executive Director of Kodiak Copper Corp (TSX-V:KDK).
Resignation of Shaun Hardcastle
On 3 April 2023, Shaun Hardcastle resigned from the Board of Directors after 3 years of service.
Carl Travaglini appointed Chief Financial Officer and Joint Company Secretary
Carl Travaglini was appointed Chief Financial Officer and Joint Company Secretary on 1 February 2023.
Mr Travaglini is a Chartered Accountant and Chartered Company Secretary with over 15 years’ experience in the
resources sector, having served in various finance and company secretarial roles in Australia, Canada and Africa. Mr
Travaglini is currently Chief Financial Officer of Bellavista Resources Limited (ASX: BVR), Midas Minerals Limited (ASX:
MM1) and Non Executive Director of Mitre Mining Corporation Ltd (ASX:MMC).
Before joining Cygnus, Mr Travaglini worked for and assisted a number of publicly listed lithium and gold companies
through exploration, project development and production phases. Prior to that, he worked in assurance services. Mr
Travaglini brings extensive experience in financial reporting, corporate governance and risk management.
LISTED INVESTMENTS
The Company holds 1,400,000 TSX-V listed shares in unincorporated joint venture partner Stria Lithium Inc (“Stria”)
which represents approximately 7% of the total issued capital in Stria.
As at 31 December 2023, the value of the investment (based on a closing price of Stria of C$0.13) is $0.2m (2022: $0.4m).
35
Annual Report | END NOTES
1. Refer to Cygnus’ ASX announcement dated 14 August 2023, titled ‘Maiden Resource at Pontax Project’.
2. For: James Bay (40Mt @ 1.4% Li2O) operated by Arcadium Lithium Plc (refer to Arcadium’s ASX Announcement
dated 21 December 2021); Whabouchi (55.7Mt @ 1.4% Li2O) operated by Nemaska Lithium Inc (refer to Nemaska
Lithium NI 43-101 dated 31 May 2019); Rose (34.2Mt @ 0.9% Li2O) operated by Critical Elements Lithium Corp (refer
to Critical Elements’ TSX-V Announcement dated 13 June 2022); Abitibi Lithium Hub (119.1Mt @ 1.1% Li2O) operated
by Sayona Mining Limited/Piedmont Lithium Inc (refer to Sayona Mining’s Annual Report ASX Release dated 13
October 2022); Moblan (70.9Mt @ 1.2% Li2O) operated by Sayona Mining/SOQUEM Inc (refer to Sayona Mining’s ASX
release dated 17 April 2023).
3. Refer to Cygnus’ ASX announcements dated 29 July 2022, 14 February 2023, 28 February 2023, 21 March 2023, 19
April 2023, 22 May 2023, 4 July 2023, 12 July 2023, 29 August 2023, 21 September 2023, 19 October 2023, 25 October
2023, and 28 November 2023.
4. Refer to Cygnus’ ASX announcement dated 18 January 2023 and Brunswick Exploration Inc’s TSX-V announcement
dated 24 May 2023.
5.
In relation to the disclosure of visual intersections of pegmatite and spodumene, the Company cautions that visual
intersections should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results
are required to confirm the widths and grade of visual intersections of pegmatite reported in the preliminary
geological logging. The Company will update the market when laboratory analytical results become available.
6. Refer to Cygnus’ ASX announcements dated 7 June 2023, 20 June 2023, 22 September 2023 and 8 January 2024.
36
Annual Report | DIRECTORS’ REPORT
The Directors of Cygnus Metals Limited (“Cygnus” or “the Company”) (formerly Cygnus Gold Limited) and its controlled entities
(“Group”) present their report, together with the financial statements for the year ended 31 December 2023.
DIRECTORS
The names and details of the Group’s directors in office during the financial year and until the date of this report (unless
otherwise stated) are as follows:
KEVIN TOMLINSON
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
Non-Executive Chairman
HSBc. MSc. Geology, Grad Dip. Finance and Investment, Banking, Corporate Finance and
Securities Law
3 April 2023
N/A
1 year
Mr Tomlinson has more than three decades’ experience in major discoveries, exploration and
resource growth, mine development and financing of mining projects globally. He has also played
leading roles in many successful mergers and acquisitions.
Mr Tomlinson is currently Non-Executive Director of FireFly Metals Limited, Bellevue Gold Corp
and Kodiak Copper Corp.
Mr Tomlinson was previously Managing Director of Investment Banking at Westwind Partners and
Stifel Nicolaus (2006-2012), raising significant equity and providing M&A corporate advice, and is
the former Chair of ASX/TSX-listed Cardinal Resources Ltd, leading its C$587 million sale to
Shandong Gold. He was also a Non-Executive Director at Centamin Plc, which discovered and built
a significant gold mine in Egypt.
Mr Tomlinson is a Fellow of the Charted Institute of Directors and a Liveryman of the Worshipful
Company of International Bankers (UK).
Current ASX listed
directorships
FireFly Metals Limited – December 2022 to present
Bellevue Gold Ltd - September 2019 to present
Kodiak Copper Corp – December 2020 to present
Former ASX and TSX
listed directorships in
the last three years
Churchill Resources Inc (TSX listed) – June 2021 – March 2023
C3 Metals Inc (TSX listed) – January 2021 – June 2022
Samco Gold Limited (TSX listed) – January 2012 – April 2021
Annual Report | 37
DIRECTORS’ REPORT
RAYMOND SHORROCKS
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
Non-Executive Director
BA (Hons), MBA (Finance)
17 May 2023, previously appointed Non-Executive Director on 30 June 2020 and Executive
Chairman on 8 November 2021
N/A
4 years 10 months
Ray Shorrocks has over 28 years’ experience working in the investment banking industry. He is
highly conversant and experienced in all areas of mergers and acquisitions and equity capital
markets, including a significant track record of transactions in the metals and mining sectors. He
was previously Chairman of ASX listed Bellevue Gold Limited and Republic Gold Limited.
Mr Shorrocks is Interim Executive Director of Mitre Mining Corporation and Non-Executive
Chairman of Alicanto Minerals Limited, Galilee Energy Limited and a number of private companies.
Mr Shorrocks is former Director and Head of the Corporate Finance department of a major
Australian investment services company based in Sydney.
Current ASX listed
directorships
Galilee Energy Limited – December 2013 to present
HCD Limited – January 2016 to present
Alicanto Minerals Limited – August 2020 to present
Mitre Mining Corporation Limited – February 2023 to present
Former ASX listed
directorships in the
last three years
DAVID SOUTHAM
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
FireFly Metals Limited – January 2020 to March 2024
Managing Director
B.Comm, FCPA, MAICD
13 February 2023, previously appointed Non-Executive Director on 1 November 2022
N/A
1 year 5 months
Mr Southam is a CPA with more than 30 years’ experience in accounting, operations, capital
markets and finance across the resources and industrial sectors. He was previously Managing
Director of Mincor Resources NL. Prior to Mincor, David was Executive Director of ASX200 nickel
company Western Areas Limited and has held senior executive roles within Brambles Group, ANZ
Investment Bank and WMC Resources. David is currently a non-executive director of Ramelius
Resources Ltd.
Current ASX listed
directorships
Former ASX listed
directorships in the last
three years
Ramelius Resources Ltd – July 2018 to present
Mincor Resources NL – February 2019 to August 2022
Annual Report | 38
DIRECTORS’ REPORT
MICHAEL NAYLOR
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
Non-Executive Director
B.Com, CA
1 March 2023, previously appointed Executive Director on 25 May 2022.
N/A
1 years 10 months
Mr Naylor has 26 years’ experience in corporate advisory and public company management
since commencing his career and qualifying as a Chartered Accountant with Ernst & Young. He
has been involved in the financial management of mineral and resources focused public
companies, serving on both the Board and Executive Management Team. He has significant
experience in focusing on advancing and developing mineral resource assets and business
development.
Michael has worked in Australia and Canada and has extensive experience in financial reporting,
capital raisings, debt financings and treasury management of resource companies.
Current ASX listed
directorships
Bellevue Gold Limited – July 2018 to present
FireFly Metals Limited – November 2018 to present
Midas Minerals Limited – June 2018 to present
Bellavista Resources Ltd – March 2023 to present
Former ASX listed
directorships in the last
three years
None
MICHAEL BOHM
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
Non-Executive Director
B.AppSc (Mining Eng), MAusIMM, MAICD
8 November 2021, previously appointed Non-Executive Chairman on 30 September 2016
N/A
7 years 6 months
Mr Bohm is a qualified mining professional with significant corporate and operations
experience. He has had extensive minerals industry experience in Australia, South East Asia,
Africa, Chile, Canada and Europe. A graduate of WA School of Mines, Mr Bohm has worked as a
mining engineer, mine manager, study manager, project manager, project director and
managing director and has been directly involved in a number of new mine developments.
Mr Bohm currently serves as a Director of a number of ASX-listed companies and sits on their
Audit Risk and Sustainability Committees and Chairs their Remuneration Committees. Prior to
this, he has held a number of directorships including those with Perseus Mining Limited, Argyle
Diamonds Mines, Sally Malay Mining Limited and Ashton Mining of Canada.
Current ASX listed
directorships
Former ASX listed
directorships in the last
three years
Riedel Resources Limited – December 2020 to present
Ramelius Resources Limited – November 2012 to May 2022
Mincor Resources Limited – January 2017 to July 2023
Annual Report | 39
DIRECTORS’ REPORT
SHAUN HARDCASTLE
Position
Qualifications
Appointment date
Resignation date
Length of service
Biography
Non-Executive Director
LLB, BA
30 June 2020
3 April 2023
2 years 9 months
Mr Hardcastle has over 15 years’ experience as a corporate lawyer and extensive experience in
corporate governance, risk management and compliance. He has been involved in a broad range
of cross border and domestic transactions including equity capital markets, mergers &
acquisitions, corporate governance and project finance. Mr Hardcastle has practised law both in
Australia and overseas and currently works as a Partner with Hamilton Locke. He graduated from
the University of Western Australia in 2005 with a Bachelor of Laws and Bachelor of Arts.
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the directors in the shares (direct and indirect) of the Company were:
Director
Ordinary fully paid shares
Unlisted options
Unlisted performance rights
Mr Kevin Tomlinson
Mr Raymond Shorrocks
Mr David Southam
Mr Michael Naylor
Mr Michael Bohm
375,000
4,388,449
4,285,715
16,518,894
7,860,036
-
3,500,000
-
2,250,000
-
700,000
-
17,178,809
-
-
Annual Report | 40
DIRECTORS’ REPORT
COMPANY SECRETARIES
MADDISON CRAMER
Qualifications
Appointment date
Resignation date
Length of service
Biography
CARL TRAVAGLINI
Qualifications
Appointment date
Resignation date
Length of service
Biography
LLB, BA (Hons)
1 November 2022
N/A
1 year 5 months
Ms Cramer is a corporate lawyer with a focus on mining and resources. She is a co-founder
of boutique corporate services business Belltree Corporate and is currently a company
secretary of a number of ASX-listed mining and resources companies. Ms Cramer is a former
company secretary of ASX300 company Bellevue Gold Limited (ASX:BGL) and prior to this
was an associate at Bellanhouse Legal and HWL Ebsworth Lawyers.
CA, ACG (CS)
1 February 2023
N/A
1 year 2 months
Mr Travaglini is a Chartered Accountant and Chartered Company Secretary with over 15
years’ experience in the resources sector, having served in various finance and company
secretarial roles in Australia, Canada and Africa. Mr Travaglini is currently Chief Financial
Officer of Bellavista Resources Ltd (ASX: BVR) and Midas Minerals Limited (ASX: MM1) and a
Non-Executive Director for Mitre Mining Limited (ASX: MMC).
SUSAN FIELD
Qualifications
Appointment date
Resignation date
Length of service
OPERATING RESULTS
CA
23 December 2020
1 February 2023
2 years 1 month
The Group’s consolidated net loss for the year ended 31 December 2023 after providing for income tax amounted to
$13,500,296 (2022: $2,761,228).
The loss included the following items:
Share-based payments of $10,185,535 (2022: $394,157), refer Note 10(b)
Exploration and evaluation expenditure written off of $634,937 (2022: $23,879), refer Note 19
Payroll tax expense of $419,510 (2022: Nil)
REVIEW OF FINANCIAL POSITION
The Group held net assets of $26,977,396 as at 31 December 2023 (2022: $17,402,441).
At year end the Group remains well financed with $9,316,782 in cash and cash equivalents (2022: $13,530,678).
Annual Report | 41
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
Cygnus Metals Limited’s principal activities consist of exploration and evaluation of lithium deposits in the world class James
Bay lithium district in Canada, and rare earth and base metals deposits in Western Australia.
There have been no significant changes in the nature of these activities during the period.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group is committed to:
exploration of the Group’s key assets in the James Bay district of Canada;
exploration of the Group’s assets in the Wheatbelt region of Western Australia; and
implementing a strategy to seek out further exploration, acquisition and joint venture opportunities.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no changes in the state of affairs of the Group other than those outlined in the Operations Review.
POST REPORTING DATE EVENTS
There have not been any events that have arisen between 31 December 2023 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations
of the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with
all regulations when carrying out any exploration work. The directors have considered the National Greenhouse and Energy
Reporting Act 2007 (‘the NGER Act’) and at the current stage of exploration and based on the locations of the Group’s
operations, the directors have determined that the NGER Act will have no effect on the Group for the current or subsequent
financial year. The directors will reassess this position as and when the need arises.
No environmental breaches have occurred or have been notified by any Government agencies during the year ended
31 December 2023.
CORPORATE GOVERNANCE
The directors of Cygnus believe that effective corporate governance improves company performance, enhances corporate
social responsibility and benefits all stakeholders. Changes and improvements are made in a substance over form manner,
which appropriately reflect the changing circumstances of the company as it grows and evolves. Accordingly, the Board has
established a number of practices and policies to ensure that these intentions are met and that all shareholders are fully
informed about the affairs of the Group.
The Company reviews all of its corporate governance practices and policies on an annual basis to ensure they are appropriate
for the Company’s current stage of exploration. This year, the review was made against the new ASX Corporate Governance
Council’s Principles and Recommendations (4th edition).
The Board has reviewed and approved its Corporate Governance Statement on 28 March 2024, and this is available on the
Company’s website at https://www.cygnusmetals.com/corporate-governancedetail
The Company has a corporate governance section on the website which includes details on the Company’s governance
arrangements and copies of relevant policies and charters.
Annual Report | 42
DIRECTORS’ REPORT
CAPITAL STRUCTURE
LISTED SHARES ON ISSUE
In August 2023, the Company raised approximately C$7,000,000 (A$8,094,401) through the issue of 18,934,273 fully paid
ordinary shares (“Shares”) at an issue price of C$0.37 (A$0.4275) each as Canadian “flow-through shares” which provide tax
incentives to those investors for expenditures that qualify as flow-through mining expenditures under the Income Tax Act
(Canada) ("Flow-Through Placement”). The Flow-Through Shares were issued at a premium to market pursuant to the Canadian
flow-through shares regime. The term “flow-through share” is a defined term in the Income Tax Act (Canada) and is not a
special type of share under corporate law.
Pursuant to a block trade agreement between PearTree Securities Inc (“Peartree”), Canaccord Genuity (Australia) Limited
(“Canaccord”) and Euroz Hartleys Limited ("Euroz”), Canaccord and Euroz facilitated the secondary sale of the Shares acquired
by PearTree clients under the Flow-Through Placement to sophisticated and professional investors in Australia and certain
other countries by way of a block trade at A$0.225 per Share.
In addition to the Flow-Through Placement the Company also completed a traditional placement to sophisticated and
professional investors to raise approximately A$3,000,000 (before costs) through the issue of 13,333,333 fully paid ordinary
shares in the Company at an issue price of A$0.225 per share.
As at the date of this report, the Company had 291,559,139 fully paid ordinary shares on issue (ASX: CY5) (2022: 183,874,212).
SHARES UNDER OPTION OR TO BE ISSUED ON CONVERSION OF PERFORMANCE RIGHTS
Details of share options and performance rights on issue as at the date of this report are:
Number
Security type
1,500,000
1,500,000
1,500,000
1,500,000
3,500,000
5,000,000
250,000
100,000
300,000
3,000,000
14,400,000
3,178,809
150,000
Share Option
Share Option
Share Option
Share Option
Share Option
Share Option
Performance Right
Performance Right
Performance Right
Performance Right
Performance Right
Performance Right
Performance Right
Exercise
price
$0.25
$0.50
$0.75
$1.00
$0.16
$0.16
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expiry date
21/10/2025
21/10/2025
21/10/2025
21/10/2025
20/01/2025
15/11/2024
30/07/2025
30/11/2026
3/04/2028
21/10/2027
13/02/2028
5/09/2028
4/05/2028
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Issuing entity
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
Cygnus Metals Limited
The holders of these share options and performance rights do not have the right, by virtue of the option or right, to participate
in any share issue or interest issue of the Company or of any other body corporate or registered scheme.
PERFORMANCE RIGHTS CONVERTED
There were 29,850,000 vested performance rights converted to 29,704,496 fully paid ordinary shares during 2023 (2022: Nil).
SHARE OPTIONS EXERCISED
There were 27,400,000 unquoted share options exercised during 2023 (2022: Nil), and 2,100,000 lapsed (2022: Nil).
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to
the date of this report.
Annual Report | 43
DIRECTORS’ REPORT
MATERIAL BUSINESS RISKS
The following describes the material business risks that could affect the Company, including any material exposure to
economic, environmental and social sustainability risks, and how the Company seeks to manage them.
CONTRACT RISK
The Company is party to various option and acquisition agreements to acquire interests in mining claims (“Mining Claims”) in
Canada (“Agreements”), which require further option exercise or deferred consideration payments to be made in the future in
order to secure the rights to the Mining Claims, by way of further share issues and/or payments in cash. Some of the share
issues are subject to future shareholder approvals. In the event that the Company is unable to satisfy the option exercise
payments or issue the deferred consideration (including in circumstances where shareholder vote down proposed shareholder
approvals), or the Company is unable to meet the mandatory expenditure obligations under the Agreements, the Company
may not be able to complete some or all of the Agreements, which may reduce the number of Mining Claims in Canada it is
able to acquire, or alternatively, reduce the interest it holds in these claims.
FUTURE CAPITAL REQUIREMENTS AND MARKET RISKS
As an exploration entity, the Company is not generating net cash flow, meaning it is reliant on raising funds from investors or
lenders in order to continue to fund its operations and to scale growth. The Company will require further funding in the future.
The Company is exposed to external market forces that impact on specific commodity prices and overarching market sentiment
that may restrict the Company’s access to new flows of capital if the Company’s project pipeline is not ascribed value in the
market at any given time. The Company manages this risk by ensuring a constant focus on the Company’s current financial
position and forecast working capital requirements. Discretionary exploration activities are focused on commodities and in
jurisdictions that will ensure access to higher levels of capital in times of broader market depression.
Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the current market
price or may involve restrictive covenants which limit the Company's operations and business strategy. Debt financing (while
not currently a focus), if available, may involve restrictions on financing and operating activities.
Although the Company believes that additional capital can be obtained, no assurances can be made that appropriate capital
or funding, if and when needed, will be available on terms favourable to the Company or at all. If the Company is unable to
obtain additional financing as needed, the Company may be required to reduce the scope of its activities, which could have a
material adverse effect on the Company's activities and could affect the Company's ability to continue as a going concern.
TENURE, ACCESS AND GRANT OF LICENCES / PERMITS
The Company’s operations are subject to receiving and maintaining licences and permits from appropriate governmental
authorities. There is no assurance that delays will not occur in connection with obtaining all necessary grants or renewals of
licences / permits for the proposed operations, additional licences / permits for any possible future changes to operations, or
additional permits associated with new legislation.
Prior to any development on any of its properties, subsidiaries of the Company must receive licences / permits from appropriate
governmental authorities. There is no certainty that the Company will hold all licences / permits necessary to develop or
continue operating at any particular property.
LAND ACCESS RISK
Land access is critical for exploration and exploitation to succeed. It requires both access to the mineral rights and access to
the surface rights. Minerals rights may be negotiated and acquired. In all cases, the acquisition of prospective exploration and
mining licences is a competitive business in which proprietary knowledge or information is critical, and the ability to negotiate
satisfactory commercial arrangements with other parties is often essential. The Company may not be successful in acquiring
or obtaining the necessary licences to conduct exploration or evaluation activities outside of the mineral tenements that it
owns or seeks to acquire.
Annual Report | 44
DIRECTORS’ REPORT
Access to land for exploration and evaluation purposes can be obtained by:
(i)
(ii)
(iii)
private access and compensation agreement with the landowner;
purchase of surface rights; or
through judicial rulings.
However, access rights to licences can be affected by many factors, including:
(i)
(ii)
(iii)
surface title land ownership negotiations, which are required before ground disturbing exploration activities can
commence within the jurisdictions in which the Company operates;
permitting for exploration activities, which are required in order to undertake most exploration and exploitation
activities within the jurisdictions in which the Company operates; and
natural occurrences, including inclement weather, volcanic eruptions, lahars and earthquakes.
All of these issues have the potential to delay, curtail and preclude the Company's operations. While the Company will have
the potential to influence some of these access issues, and retains staff to manage those instances where negotiations are
required to gain access, it is not possible for the Company to predict the extent to which the above-mentioned risks and
uncertainties may adversely impact the Company's operations.
ACCESS TO SUFFICIENT USED AND NEW EQUIPMENT
The Company is dependent on access to used and new mining equipment. In the event that the Company has difficulty in
securing adequate supplies of mining equipment at appropriate prices, or if the quality of the equipment is not acceptable or
suitable, its ability to perform or commence new projects may be adversely affected. This difficulty may have an adverse impact
on the financial performance and financial position of the Company.
DATA MANAGEMENT
The risk of retaining or managing the Company’s corporate data in a way that is inconsistent with the Company’s regulatory
obligations. This is considered to be a growing risk as the Company and related data volumes grow and cyber-security threats
become more sophisticated. Failure to properly manage the Company’s corporate data could result in significant financial and
regulatory implications. The Company has implemented a number of company-wide controls to manage this risk, including the
continuous review and updating of security controls on the Company’s network based on known security threats and the latest
intelligence.
REGULATORY ENVIRONMENT
The risk of failing to adapt and adhere to rapidly evolving regulatory environments in Australia and Canada. This can result in
the increased complexity and cost of doing business and the risk of forfeiture of exploration and mining claims from the failure
of complying with these complex regulatory environments. In Australia, significant compliance risk may arise from emerging
changes to regulatory frameworks, including the Work Health and Safety (Mines) Regulations 2022. The Company’s risk
management strategy is designed to monitor and limit the adverse consequences of existing and new regulations in a way that
is efficient and minimizes compliance costs.
PEOPLE CAPABILITY
The risk that the Company fails to attract and retain the talent and leadership required to execute the Company’s strategies
and objectives, including the technical expertise to explore for and discover economic mineral deposits, and the corporate
talent to achieve value for shareholders via corporate activities, including project acquisitions, project divestments and joint
venture activities. The intention of the Company’s remuneration framework is to ensure remuneration and reward structures
are aligned with shareholders’ interests by being market competitive to attract and retain high calibre individuals, rewarding
superior individual performance, recognising the contribution of each executive to the continued growth and success of the
Company, and linking long-term incentives to shareholder value.
Annual Report | 45
DIRECTORS’ REPORT
GENERAL ECONOMIC CLIMATE
Factors such as inflation, currency fluctuations, interest rates, legislative changes, political decisions and industrial disruption
have an impact on operating costs. The Company’s future income, asset values and share price can be affected by these factors.
CLIMATE CHANGE
There are a number of climate-related factors that may affect the Company's business. Climate change or prolonged periods
of adverse weather and climatic conditions (including rising sea levels, floods, hail, drought, water scarcity, temperature
extremes, frosts, earthquakes and pestilences) may have an adverse effect on the ability of the Company to access and utilise
its tenements and therefore the Company's ability to carry out operations.
Changes in policy, technological innovation, and consumer or investor preferences could adversely impact the Company's
business strategy, particularly in the event of a transition (which may occur in unpredictable ways) to a lower-carbon economy.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company is committed to protecting and respecting the environment and local communities within which it operates and
looks forward to enhancing its positive impact in these areas.
As the Company advances its strategies, it will be sharing its ESG efforts and impact regularly, in line with its annual reporting
cycle.
Annual Report | 46
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT
This remuneration report for the year ended 31 December 2023 outlines the remuneration arrangements of the Company and
its controlled entities (“Group”) in accordance with the requirements of the Corporations Act 2001 (Cth) (“Act”) and its
Regulations. This information has been audited as required by section 300A of the Corporations Act.
The remuneration report details the remuneration arrangements for Directors and other Key Management Personnel (“KMP”),
who are defined as those persons having authority and responsibility for planning, directing, and controlling the major activities
of the Company and Group, directly or indirectly, including any director (whether executive or otherwise) of the parent entity.
The table below outlines the Directors and other KMP of the Company during the financial year ended 31 December 2023.
Unless otherwise indicated, the individuals were Directors or other KMP for the entire financial year.
For the purposes of this report, the term “Executive” includes the executive directors and senior executives of the Company.
Non-Executive Directors
Kevin Tomlinson
Raymond Shorrocks
Michael Bohm
Michael Naylor
Non-Executive Chair (appointed 3 April 2023)
Non-Executive Director (appointed 3 April 2023, previously appointed Non-Executive Chairman on
8 November 2021)
Non-Executive Director
Non-Executive Director (appointed 1 March 2023, previously appointed Executive Director on
25 May 2022)
Shaun Hardcastle
Non-Executive Director (resigned 3 April 2023)
Executive Directors
David Southam
Other KMP
Susan Field
Managing Director (appointed 13 February 2023, previously appointed Non-Executive Director on
1 November 2022)
Chief Financial Officer and Joint Company Secretary (resigned 1 February 2023)
Carl Travaglini
Chief Financial Officer and Joint Company Secretary (appointed 1 February 2023)
There were no changes to Directors or other KMP after reporting date and before the date the financial report was authorised
for issue.
REMUNERATION GOVERNANCE
Due to the current size of the Group, it is more efficient and effective for the functions otherwise undertaken by a remuneration
committee to be performed by the Board. All directors are therefore responsible for determining and reviewing compensation
arrangements for key management personnel, including periodically assessing the appropriateness of the nature and amount
of remuneration by reference to relevant market conditions and prevailing practices. Directors excuse themselves from
discussions that are specific to their individual remuneration components and are not in relation to the remuneration of the
group of non-executive directors as a collective.
The Board may obtain professional advice where necessary to ensure that the Group attracts and retains talented and
motivated directors, executives and employees who can enhance Group performance through their contributions and
leadership.
Annual Report | 47
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
REMUNERATION FRAMEWORK
The Board recognises that the Group’s performance and ultimate success in project delivery depends on many factors including
its ability to attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must
be transparent to shareholders and be fair and competitive, taking into account the nature and size of the organisation and its
current stage of activities, funding and general market conditions.
The approach to remuneration has been structured with the following objectives:
Fairness: provide a fair level of reward to all employees;
Transparency: establish transparent links between reward and performance;
•
•
• Alignment: promote mutually beneficial outcomes by aligning employee, and shareholder interests; and
• Culture: drive leadership performance and behaviours that promote safety, diversity and employee engagement.
The remuneration for executives may have several components, including:
Fixed remuneration, inclusive of superannuation and allowances;
Short Term Incentives (“STI”) under a performance-based cash or equity bonus incentive plan; and
Long Term Incentives (“LTI”) through participation in the Company’s approved equity incentive plan.
•
•
•
These three components comprise each executive’s total annual remuneration.
To link executive remuneration with the Group’s performance, the Company’s policy is to endeavour to provide a portion of
each executive’s total remuneration as “at risk”.
2023 MIX OF REMUNERATION FOR DIRECTORS AND OTHER KMP - PERCENTAGE OF TOTAL REMUNERATION
As demonstrated above, the mix of remuneration for executive KMP is weighted towards variable long-term incentives in the
interests of preserving cash and aligning KMP performance outcomes with the growth of shareholder wealth. Long-term
incentive remuneration is comprised of the accounting based valuation of performance rights. These valuations are calculated
at the time of grant and are based on the Company’s share price and other market factors evident at that time. For clarity, the
components of David Southam’s share-based (LTI) remuneration for 2023 includes the following:
•
•
•
$2,000,000 in remuneration relates to 4,000,000 performance rights that were valued at 50c at the time of grant,
which vested and were converted into 4,000,000 shares during the year upon the Company successfully reporting a
maiden JORC Inferred Mineral Resource Estimate of 10Mt for the Pontax Lithium Project. The Company’s share price
at the time of conversion was 27c. Mr Southam continues to hold these shares as at the date of this report.
$1,692,141 in remuneration relates to 10,000,000 performance rights that were valued at between 46.3c and 50c at
the time of grant. As at the date of this report, the related vesting conditions have not yet been met and these
performance rights are not yet convertible into shares.
$75,400 in remuneration relates to 3,178,809 performance rights that were valued at between 17c and 18.5c at the
time of grant. As at the date of this report, the vesting conditions have not yet been met and these performance rights
are not yet convertible into shares.
Annual Report | 48
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
OVERVIEW OF COMPANY PERFORMANCE
In considering the Company’s performance and benefits for shareholder wealth, the Board has regard to the following indices
in respect of the current and the previous four financial years:
Income
Net loss after tax
Share price at 31 December
2023
$2,875,304
$13,500,296
$0.135
2022
$685,203
$2,761,228
$0.380
2021
$30,311
$2,081,181
$0.175
2020
$439,311
$7,720,430
$0.180
2019
$231,203
$870,917
$0.044
Currently, there is a portion of remuneration of certain executive KMP that is linked to share price performance. The rationale
for this approach is that the Group is in the exploration phase, and it is currently not appropriate to link remuneration to any
other factors such as profitability.
KMP REMUNERATION
A combination of fixed and variable reward may be provided to KMPs, based on their responsibility within the Group in relation
to the achievement of its strategic objectives and their capacity to contribute to the generation of long-term shareholder value.
The components of KMP remuneration may consist of:
Fixed Remuneration
KMP receive either an annual fixed base cash salary or fee and other associated benefits depending on the nature of their
contract. Fixed remuneration includes statutory superannuation guarantee contributions required by Australian legislation,
which was 10.5% up to 30 June 2023, and then increased to 11% from 1 July 2023. Directors and KMP do not receive any other
retirement benefits.
Fixed remuneration of KMP will be set by the Board each year and is based on a number of factors. In setting fixed remuneration
for KMP, individual performance, skills, expertise and experience are taken into account as well as the Group’s current level of
activity and funding.
Where appropriate, external remuneration consultants may be engaged to assist the Board.
Short-Term Incentives
Under the Company’s remuneration policy, employees are eligible to participate in the Company’s Short-Term Incentive
Program (“STIP”) and earn short-term bonuses of up to a fixed percentage of their fixed total remuneration package, subject
to achievement of STIP hurdles.
The objective of the STIP is to provide the opportunity to earn a cash or equity bonus by rewarding those employees who
successfully achieve, in the opinion of the Board, the critical short-term objectives of the Company over a twelve-month period.
Those short-term objectives for each employee are pre-determined and approved by the Board as being aligned with the
Company’s stated strategy to derive shareholder return.
For an employee who resigns or is terminated for cause before the end of the financial year, no STI is awarded for that year.
Similarly, any deferred STI awards are forfeited, unless otherwise determined by the Board.
If an employee ceases employment during the performance period by reason of redundancy, ill health, death, or other
circumstance approved by the Board, the employee will be entitled to a pro-rata cash payment based on an assessment of
performance up to the date of ceasing employment for that year and any deferred STI awards will be retained (subject to Board
discretion).
Annual Report | 49
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
2023 STI Awarded
After the end of the current reporting period the Board agreed to award Mr Southam an STI bonus of $120,000 including
superannuation upon the successful achievement of the following critical short-term performance targets by 31 December
2023:
Performance Target Summary
% of total fixed
remuneration
Weighting
Acquisition of further tenure outside the main Pontax trend that is
prospective for lithium in the James Bay region
Establishing adequate health and safety standards in Quebec
Establishing good Canadian community relations, including Canadian first
nations strategy and meeting the first nations group.
Building an appropriate team that can adequately assist in implementing
the Company’s Canadian exploration strategy.
5%
7.5%
7.5%
5%
Total
20%
30%
30%
20%
100%
In the interests of conserving cash reserves, the Board agreed to pay Mr Southam this STI bonus in equity instruments, subject
to receiving Shareholder approval at the Company’s 2024 Annual General Meeting. Should Shareholders not approve the equity
issue, the STI will become payable in cash.
This equated to 100% of the potential STI payable to Mr Southam in relation to the 2023 reporting period. Accordingly, there
was no STI amount forfeited by Mr Southam for the 2023 reporting period.
Long-Term Incentives
The Group also awards its KMP with Long-Term Incentives (“LTIs”). LTIs are issued under the Company’s Employee Incentives
Securities Plan which was approved by Shareholders on 31 January 2023. The objective of LTIs is to provide potential rewards
to KMP in a manner which aligns this element of remuneration with the creation of shareholder wealth. As such LTIs can be
awarded to KMP who are able to influence the generation of shareholder wealth and thus have an impact on the Group’s
performance.
If an employee resigns or is terminated for cause before the end of the financial year, no LTIs will vest for that year. Similarly,
any vested and unexercised LTI awards are forfeited, unless otherwise determined by the Board.
If an employee ceases employment during the performance period by reason of redundancy, ill health, death, or other
circumstance approved by the Board, the employee will be entitled to receive any vested but unexercised LTIs as at the date
of ceasing employment, subject to Board discretion.
The treatment of vested and unexercised awards in all other circumstances will be determined by the Board with reference to
the circumstances of cessation.
The Company prohibits directors or employees from entering into arrangements to protect the value of any Company shares,
options or performance rights that the director or employee has become entitled to as part of their remuneration package.
This includes entering into a contract to hedge their exposure.
Unlisted Share Options
There were no unlisted share options issued in 2023.
Annual Report | 50
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
Performance Rights
During 2023 the Company granted 22,678,809 Performance Rights to Director and other KMP as detailed on page 53. These
rights were granted with a nil exercise price and a time to expiry of approximately five years. The following vesting conditions
apply to various tranches of the total number of rights granted during 2023:
1. The Company reporting a JORC compliant Inferred Mineral Resource on any project of at least 5MT at a minimum
grade of 0.8% Li2O on or before the vesting date.
2. The Company reporting a JORC compliant Inferred Mineral Resource on any project other (than the Pontax Project)
of at least 5MT at a minimum grade of 0.8% Li2O on or before 31 December 2025
3. The Company reporting a JORC compliant Inferred Mineral Resource of at least 10MT at a minimum grade of 0.8%
Li2O on or before the vesting date.
4. The Company reporting a JORC compliant Inferred Mineral Resource of at least 20MT at a minimum grade of 0.8%
Li2O on or before 13 February 2028.
5. The Company has a market capitalisation of at least $150 million over at least 10 consecutive trading days on which
trades actually occur.
6. The Company has a 10-day VWAP of at least $1.00 or a market capitalisation of at least $250 million over at least 10
consecutive trading days on which trades actually occur.
7. The Company’s TSR exceeds the median TSR of its Peer Group for period 1 July 2023 to 31 December 2025.
8. Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to
and including the vesting date.
In respect of items 1 and 3 above, the conditions for the performance rights were met and 14,300,000 performance
rights were vested to KMP and converted into shares during the reporting period.
NON-EXECUTIVE DIRECTOR REMUNERATION
Non-Executive Director fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are determined in accordance with the rules set out in the Group’s Constitution and the
Corporations Act at the time of the director’s retirement or termination.
Non-Executive Director remuneration may include an incentive portion consisting of performance rights and/or share options,
as considered appropriate by the Board, which is subject to shareholder approval in accordance with the ASX Listing Rules.
The aggregate remuneration, and the manner in which it is apportioned amongst Non-Executive Directors, is reviewed
annually. The Board considers the amount of director fees being paid by comparable companies with similar responsibilities
and levels of experience of the Non-Executive Directors when undertaking the annual review process.
The maximum amount of Non-Executive Director fees payable is fixed at $600,000 in total, for each 12-month period
commencing 1 January each year, until varied by ordinary resolution of shareholders. This amount of $600,000 was approved
by shareholders in January 2023, up from $300,000.
Non-Executive Directors are not entitled to any termination payments.
Director Fees
2023 Fees Per Director Inclusive of
Superannuation
2022 Fees Per Director Inclusive of
Superannuation
$A Per Annum
$A Per Annum
Chair of the Board
Other Non-Executive Directors
150,000
55,249
82,875
55,000
USE OF REMUNERATION CONSULTANTS
During the year ended 31 December 2023, the Board did not engage the services of remuneration consultants (2022: None).
This was considered appropriate whilst the Group is in the exploration phase.
Annual Report | 51
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
THE REMUNERATION OF THE DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL
The Directors and other KMP of the Company, alongside their remuneration for the period, are set out in the following tables:
Fixed remuneration
Variable remuneration
Base Salary
and Fees
$
2023
Non-Executive Directors
K Tomlinson1
R Shorrocks
M Bohm
M Naylor
S Hardcastle2
Executive Directors
D Southam3
Other KMP
C Travaglini4
S Field4
Totals
149,889
57,956
55,375
93,356
13,750
422,429
137,500
6,0005
936,255
Annual
leave
$
-
-
-
2,564
-
Super-
annuation
$
Bonus
(non-cash)
$
-
4,044
-
9,730
-
-
-
-
-
-
Performance
rights
(non-cash)
$
101,818
193,109
-
1,544,872
-
Total
$
251,707
255,109
55,375
1,650,522
13,750
29,053
32,179
120,000
3,767,541
4,371,202
5,433
-
37,050
14,813
-
60,766
-
-
120,000
245,000
240,837
6,093,1776
402,746
246,837
7,247,248
Performance
based
%
40%
76%
-
94%
-
89%
61%
98%
86%
Notes:
1. Mr Tomlinson was appointed Non-Executive Chairman on 3 April 2023.
2. Mr Hardcastle resigned 3 April 2023. During 2023 Mr Hardcastle’s non-executive director fees were paid up until his resignation date.
3. Mr Southam was appointed as Managing Director on 13 February 2023, previously appointed Non-Executive Director 1 November 2022.
4. Ms Field resigned and Mr Travaglini was appointed as Chief Financial Officer and Joint Company Secretary on 1 February 2023.
5. Ms Field’s fees were paid by the Company to Blue Leaf Corporate Pty Ltd, a Company controlled by Mr Naylor.
6.
The share price used in the valuation of share-based remuneration reported in the current period was required to be set at the time of the grant
of the related performance right. The Company’s share price at the time of each grant of performance rights to KMP was as follows:
Kevin Tomlinson 22c
a.
b.
Ray Shorrocks 25c
c. Michael Naylor 25c
d. David Southam 50c
Carl Travaglini 49c
e.
Sue Field 24c
f.
Base Salary
$
69,375
-
-
-
-
2022
Non-Executive Directors
R Shorrocks1
D Southam2
M Bohm
S Hardcastle
S Jackson3
Executive Directors
M Naylor
Other KMP
S Field
Totals
-
161,633
92,258
Fixed remuneration
Variable remuneration
Director and
consultant fees
$
Annual
leave
$
Super-
annuation
$
Bonus
(cash)
$
6,875
9,167
55,000
42,500
11,855
-
-
-
-
-
6,375
-
-
-
-
-
-
-
-
-
Performance
rights
(non-cash)
$
12,149
-
-
-
-
Total
$
94,774
9,167
55,000
42,500
11,855
-
9,264
9,626
100,0004
97,194
308,342
60,0005
185,397
-
9,264
-
16,001
-
100,000
11,663
121,006
71,663
593,301
Performance
based
%
13%
-
-
-
-
64%
16%
37%
Notes:
1. Mr Shorrocks was appointed Non-Executive Director on 25 May 2022, previously appointed Executive Chairman on 8 November 2021.
2. Mr Southam was appointed as Non-Executive Director 1 November 2022.
3. Mr Jackson resigned 25 May 2022. During 2022 Mr Jackson’s non-executive director fees were paid up until his resignation date to Whistler
Consulting Pty Ltd, a Company controlled by Mr Jackson.
4. Mr Naylor received a discretionary bonus as approved by the Board of Directors in recognition for his significant efforts throughout 2022.
5. Ms Field’s fees were paid by the Company to Blue Leaf Corporate Pty Ltd, a company controlled by Mr Naylor.
Annual Report | 52
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
SHARES HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Balance at start
of year
Held upon
commencing as
KMP
Directors
Kevin Tomlinson
Ray Shorrocks
Michael Naylor
David Southam
Michael Bohm
Shaun Hardcastle
Other KMP
Carl Travaglini
Susan Field
Totals
-
3,258,449
7,158,894
285,715
6,500,036
1,415,645
-
-
18,618,739
-
-
-
-
-
-
50,000
-
50,000
Acquired
Disposed
375,000
3,000,000
10,000,000
4,000,000
2,000,000
-
500,000
-
19,875,000
-
(1,870,000)
(640,000)
-
(640,000)
-
-
-
(3,150,000)
Held upon
cessation as
KMP
-
-
-
-
-
(1,415,645)
-
-
(1,415,645)
Balance at the
end of the year
375,000
4,388,449
16,518,894
4,285,715
7,860,036
-
550,000
-
33,978,094
SHARES ISSUED ON EXERCISE OF OPTIONS AND PERFORMANCE RIGHTS
During 2023, there were 13,800,000 shares issued from the conversion of performance rights (2022: None) and 6,000,000
shares issued from the exercise of share options (2022: None) by KMP.
UNLISTED OPTIONS HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Directors
Ray Shorrocks
Ray Shorrocks
Michael Naylor
Michael Naylor
Michael Bohm
Shaun Hardcastle
Other KMP
Susan Field
Totals
Grant date
Expiry date
Fair value
Exercise
price
Balance
1 Jan 2023
23/12/21
20/09/20
07/11/21
20/09/20
20/09/20
20/09/20
20/01/25
20/09/23
15/11/24
20/09/23
20/09/23
20/09/23
$0.0917
$0.1458
$0.9500
$0.1458
$0.1458
$0.1458
$0.16
$0.08
$0.16
$0.08
$0.08
$0.08
3,500,000
2,000,000
2,250,000
2,000,000
2,000,000
2,000,000
Exercised
-
(2,000,000)
(2,000,000)
(2,000,000)
-
Held on
resignation
Balance
31 Dec 2023
-
-
-
-
-
(2,000,000)
3,500,000
-
2,250,000
-
-
-
07/11/21
15/11/24
$0.095
$0.16
250,000
6,000,000
-
(6,000,000)
(250,000)
(2,250,000)
-
5,750,000
Vested and
exercisable
31 Dec 2023
3,500,000
-
2,250,000
-
-
-
-
5,750,000
PERFORMANCE RIGHTS HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Grant date
Expiry date
Fair
value
Exercise
price
Balance
1 Jan 2023
Granted
Exercised
Lapsed
Vested and
convertible
31 Dec
2023
Balance
31 Dec 2023
Directors
K Tomlinson
K Tomlinson
K Tomlinson
R Shorrocks
M Naylor
D Southam
D Southam
D Southam
D Southam
D Southam
D Southam
Other KMP
C Travaglini
S Field
Totals
26/03/2023
26/03/2023
26/03/2023
28/09/2022
28/09/2022
1/11/2023
31/01/2023
31/01/2023
31/01/2023
28/08/2023
28/08/2023
13/02/2028
3/04/2028
13/02/2028
21/10/2027
21/10/2027
13/02/2028
13/02/2028
13/02/2028
13/02/2028
5/09/2028
5/09/2028
$0.2200
$0.2200
$0.1723
$0.2500
$0.2500
$0.5000
$0.5000
$0.4750
$0.4630
$0.2825
$0.2950
7/02/2023
15/08/2022
21/10/2027
21/10/2027
$0.4900
$0.2400
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
-
-
1,000,000
8,000,000
-
-
-
-
-
-
300,000
300,000
400,000
-
-
5,000,000
8,000,000
2,500,000
2,500,000
1,059,603
2,119,206
(300,000)
-
-
(1,000,000)
(8,000,000)
-
(4,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
300,000
400,000
-
-
5,000,000
4,000,000
2,500,000
2,500,000
1,059,603
2,119,206
-
1,000,000
10,000,000
500,000
-
22,678,809
(500,000)
(500,000)
(14,300,000)
-
(500,000)
(500,000)
-
-
17,878,809
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Annual Report | 53
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
APPOINTMENT OF MANAGING DIRECTOR
On 13 February 2023 Mr Southam commenced as Managing Director. The material terms of Mr Southam’s Managing Director
employment contract are:
-
-
-
-
-
Commencement Date: 13 February 2023 on a part-time basis with transition arrangements to move to full-time.
Term / Notice Period: Ongoing term, with termination by the Company on six months’ written notice and termination by
the Managing Director on three months’ written notice. The Company may terminate the employment without notice in
certain circumstances.
Remuneration: A fixed Total Remuneration Package (“TRP”) of $600,000 (Full Time Equivalent), inclusive of
superannuation contributions.
Short Term Incentive Program (“STIP”): Eligible to participate in a STIP of up to 25% of TRP subject to achievement of STIP
hurdles.
Employee Incentives Securities Plan (“EISP”): Eligible to participate in the EISP. The Company agreed to issue 18,000,000
performance rights to Mr Southam which are linked to his commencement in the role as Managing Director. Those
performance rights were issued on 13 February 2023 following receipt of shareholder approval with the following vesting
conditions:
Director
Performance
Rights
Number
Vesting Condition
Expiry Date
Tranche M
5,000,000
2 years continuous employment with the Company from the
date of appointment (being 1 November 2022)
13 February 2028
Tranche N
2,000,000
Tranche O
2,000,000
Tranche P
4,000,000
Tranche Q
2,500,000
Tranche R
2,500,000
The Company, in respect of any of the mining tenements or
projects it holds an interest in at the issue date of the
Performance Rights or acquires at any date in the future,
announces a JORC 2012 compliant Li2O resource of at least 5Mt
at a grade of no less than 0.8% lithium
13 February 2028
The Company, in respect of any of the mining tenements or
projects it holds an interest in at the issue date of the
Performance Rights or acquires at any date in the future,
announces a JORC 2012 compliant Li2O resource of at least
10Mt at a grade of no less than 0.8% lithium
The Company, in respect of any of the mining tenements or
projects it holds an interest in at the issue date of the
Performance Rights or acquires at any date in the future,
announces a JORC 2012 compliant Li2O resource of at least
20Mt at a grade of no less than 0.8% lithium
13 February 2028
13 February 2028
The Company achieving a market capitalisation of at least
A$150,000,000 over a period of not less than 10 consecutive
trading days on which trades in the Company’s Shares actually
occur
The Company’s share price having a 10-day VWAP of at least
$1.00 or a market capitalisation of at least $250,000,000 over a
period of not less than 10 consecutive trading days on which
trades in the Company’s Shares actually occur
13 February 2028
13 February 2028
Annual Report | 54
DIRECTORS’ REPORT
During the reporting period, the conditions of Tranches N and O were met and 4,000,000 performance rights were vested and
subsequently exercised into shares which continue to be held by Mr Southam. All remaining 14,000,000 performance rights
remain unvested as conditions have not yet been achieved.
SERVICE AGREEMENTS
Remuneration and other terms of employment for Executive Directors are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods. Participation in short term and long-term
incentives are at the discretion of the Board. Other major provisions of the agreements relating to remuneration are set out
below.
Name and Position
Term of Agreement
Base Salary Including
Superannuation
Company/Employee
Termination Notice
Period
David Southam
Managing Director
Ongoing commencing
13 February 2023
$600,000 p.a.
(Full-time equivalent)
6 / 3 months
Termination
Benefit
6 months’ base
salary plus
superannuation
LOANS TO DIRECTOR RELATED PARTIES
There were no loans to Directors of the Company, including their personally related parties, as at 31 December 2023 (2022:
None).
OTHER TRANSACTIONS WITH DIRECTOR RELATED PARTIES
The following transactions and arrangements with Director related parties occurred during the current and comparative
reporting periods:
Former Director Shaun Hardcastle is a Partner of Hamilton Locke Lawyers which provided legal services to the Company to the
value of $155,307 during 2023 (2022: $137,025). There was $995 owing to Hamilton Locke Lawyers by the Company at
31 December 2023 (2022: $36,910).
Blue Leaf Corporate Pty Ltd, a company owned by Michael Naylor, provided company secretarial and financial management
services to the Company during 2023 to the value of $42,000 (2022: $118,500). Acting as joint company secretary up to her
resignation on 1 February 2023, Susan Field was under contract with Blue Leaf Corporate Pty Ltd and was remunerated $5,000
(2022: $60,000) for her contribution of services to Cygnus Metals Limited which has been disclosed as remuneration in the
table on page 52. There were no amounts owing to Blue Leaf Corporate Pty Ltd by the Company at 31 December 2023 (2022:
Nil).
Belltree Corporate Pty Ltd, a company that Michael Naylor is a director of, and Michael Naylor and former Director Shaun
Hardcastle have an indirect interest in, provided company secretarial services to the Company during the year ended
31 December 2023 totalling $89,500 (2022: $7,000). There were no amounts owing to Belltree Corporate Pty Ltd by the
Company at 31 December 2023 (2022: Nil).
Exia-IT Pty Ltd, of which Belltree Corporate Pty Ltd holds an interest and Michael Naylor holds an interest in Belltree Corporate
Pty Ltd, provided information technology management services to the Company during the year ended 31 December 2023
totalling $68,923 (2022: Nil). There were no amounts owing to Exia-IT Pty Ltd by the Company at 31 December 2023 (2022:
Nil).
During the year ended 31 December 2023 the Company paid $196,960 (2022: $266,599) for shared administrative, head office
rent and head office fit-out costs to FireFly Metals Limited (formerly Auteco Minerals Limited), of which Ray Shorrocks and
Michael Naylor were directors in 2023. $25,385 was owing to FireFly Metals Limited by the Company at 31 December 2023
(2022: $151,716).
Bellavista Resources Ltd, a company that Michael Naylor is a director of, recharged shared office costs to the Company during
the year ended 31 December 2023 totalling $64,987 (2022: $16,674). $3,399 was owing to Bellavista Resources Ltd by the
Company at 31 December 2023 (2022: $13,114).
Annual Report | 55
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT (Continued)
OTHER TRANSACTIONS WITH DIRECTOR RELATED PARTIES (Continued)
Bellevue Gold Limited, a company that Michael Naylor is a director of, recharged shared administrative costs to the Company
during the year ended 31 December 2023 totalling $20,480 (2022: $10,694). $14,440 was owing to Bellevue Gold Limited by
the Company at 31 December 2023 (2022: Nil).
Mitre Mining Corporation Ltd, a company that Ray Shorrocks is a director of, recharged shared office costs to the Company
during the year ended 31 December 2023 totalling $8,325 (2022: Nil). $8,325 was owing to Mitre Mining Corporation Ltd by
the Company at 31 December 2023 (2022: Nil).
Terms and conditions of transactions with related parties
Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding
balances at year-end are unsecured and interest-free and settlement occurs in cash and are presented as part of trade
payables. There have been no bank guarantees provided for any related party payables. Amounts shown are net of GST paid
or payable.
VOTING AND COMMENTS MADE AT THE COMPANY’S LAST ANNUAL GENERAL MEETING
Cygnus received 80.17% “yes” votes on its Remuneration Report for the year ended 31 December 2022.
END OF AUDITED REMUNERATION REPORT
MEETINGS OF DIRECTORS
During the financial year, seven meetings of directors were held and attendances by each director during the year were as
follows:
Kevin Tomlinson
Michael Bohm
David Southam
Michael Naylor
Ray Shorrocks
Shaun Hardcastle
Number
attended
5
7
7
7
6
2
Number eligible to
attend
5
7
7
7
7
2
Given the size of the Board, the Company has decided that there are no efficiencies to be gained from forming separate board
committees.
SHARE OPTIONS AND PERFORMANCE RIGHTS
There are 14,500,000 share options on issue (2022: 44,000,000) and 21,378,809 performance rights on issue (2022: 47,900,000)
at the date of this report.
INDEMNIFYING OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer of the Company
shall be indemnified out of the property of the Company against any liability incurred by him in his capacity as officer or agent
of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in
defending any proceedings, whether civil or criminal. The terms of the policy prevent disclosure of the amount of the premium
payable and the level of indemnification under the insurance contract.
Annual Report | 56
DIRECTORS’ REPORT
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the
terms of its audit engagement agreement, against claims by third parties arising from the audit (for an unspecified amount).
No payments have been made to indemnify Ernst & Young to the date of this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these
proceedings.
The Company was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
Ernst & Young, the Company’s auditors, have not performed any other services in addition to their statutory audit duties.
The total remuneration for audit services provided during the prior and current financial years is set out in note 12 of the
financial statements.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 31 December 2023 has been received and is attached to this
Directors’ Report.
COMPLIANCE STATEMENTS AND DISCLAIMERS
Exploration Results - Canada
The information in this annual report relating to Exploration Results in Canada is based on, and fairly represents, information
and supporting documentation reviewed by Ms Laurence Huss, Quebec In-Country Manager of Cygnus Metals Ltd. Ms Huss also
holds performance rights in the Company. Ms Huss is a member of the Quebec Order of Geologists (OGQ #486), a Registered
Overseas Professional Organisation as defined in the ASX Listing Rules, and has sufficient experience which is relevant to the style
of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Ms Huss consents to the inclusion in this report of the matters based on the information in the form
and context in which they appear.
Exploration Results - Australia
The information in this annual report that relates to Exploration Results in Australia is based on and fairly represents information
and supporting documentation compiled by Mr Duncan Grieve, a Competent Person who is a member of The Australasian Institute
of Geoscientists. Mr Grieve is Chief Geologist and a full-time employee of Cygnus Metals and holds shares in the Company.
Mr Grieve has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he
is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Grieve consents to the inclusion in this announcement of the
matters based on this information in the form and context in which it appears.
Annual Report | 57
DIRECTORS’ REPORT
Mineral Resource Estimates
The information in this annual report that relates to the Pontax Lithium Project Mineral Resource Estimate is based on and fairly
represents information and supporting documentation compiled by Mr Brian Wolfe, a Competent Person who is a member of The
Australasian Institute of Geoscientists. Mr Brian Wolfe is an independent consultant specialising in Mineral Resource estimation,
evaluation and exploration. Mr Brian Wolfe does not hold any interest in Cygnus Metals Limited, its related parties, or in any of the
mineral properties that are the subject of this report.
Mr Brian Wolfe is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the JORC Code. Mr Brian Wolfe consents to the inclusion in this report of the matters based on this
information in the form and context in which it appears.
Forward Looking Statements
This report may contain certain forward-looking statements and projections regarding estimated, resources and reserves; planned
production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward
looking statements/ projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees
of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control
of Cygnus Metals Limited. The forward-looking statements/projections are inherently uncertain and may therefore differ materially
from results ultimately achieved.
Cygnus Metals Limited does not make any representations and provides no warranties concerning the accuracy of the projections,
and disclaims any obligation to update or revise any forward-looking statements/projects based on new information, future events
or otherwise except to the extent required by applicable laws. While the information contained in this report has been prepared in
good faith, neither Cygnus Metals or any of its directors, officers, agents, employees or advisors give any representation or warranty,
express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained
in this presentation. Accordingly, to the maximum extent permitted by law, none of Cygnus Metals Limited, its directors, employees
or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous,
statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this
presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this report.
DIRECTORS’ DECLARATION
This report is made in accordance with a resolution of the directors.
David Southam
Managing Director
Dated in Perth this 28th day of March 2024.
Annual Report | 58
ANNUAL MINERAL RESOURCE
STATEMENT
The Mineral Resource Estimate was prepared in accordance with the 2012 Edition of the Australian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) by Mr Brian Wolfe, an independent consultant
specialising in Mineral Resource estimation, evaluation and exploration, with oversight from Cygnus personnel.
The Mineral Resource Estimate as at 31 December 2023 which was released on 14 August 2023 is presented in the table below:
Resource Category
Inferred
Cut-off Grade
(Li2O)
0.5%
Tonnes
(Mt)
10.1
Grade
(Li2O)
1.04%
Contained Li2O
(Tonnes)
105,280
Grade
(Ta2O5 ppm)
74.79
Notes: Mineral Resources that are not Ore Reserves have not demonstrated economic viability and an Inferred Mineral Resource carries a lower level of
confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The Mineral Resource Estimate has been independently estimated by Mr Brian Wolfe (see Competent Person statement).
Classification
The Mineral Resource Estimate has been classified in accordance with guidelines contained in the JORC Code (2012). This
classification is based on assessment and understanding of the deposit style, geological and grade continuity, drill-hole spacing,
input data quality (including drill collar surveys and bulk density).
The Mineral Resource Estimate was classified as Inferred, accounting for the level of geological understanding of the deposit,
quality of samples, density data, drill-hole spacing and sampling, analytical and metallurgical processes. Material classified as
Inferred was considered sufficiently informed by geological and sampling data to imply geological, grade and quality continuity
between data points.
The classification reflects the level of data available for the estimate, including input drill-hole data spacing, and high level of
confidence in geological continuity for this particular style of deposit.
Governance Controls
All Mineral Resource estimates are prepared by Competent Persons using data that they have reviewed and consider to have
been collected using industry standard practices and which, to the most practical degree possible are representative, unbiased,
and collected with appropriate QA/QC practices in place. The Mineral Resource Estimate quoted above has been estimated by
Mr Brian Wolfe.
Mr Brian Wolfe is an independent consultant specialising in Mineral Resource estimation, evaluation and exploration. Mr Brian
Wolfe does not hold any interest in Cygnus Metals Limited, its related parties, or in any of the mineral properties that are the
subject of this report. Mr Brian Wolfe is a member of the Australasian Institute of Mining and Metallurgy and has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the JORC Code.
Annual Report | 59
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s independence declaration to the Directors of Cygnus Metals
Limited
As lead auditor for the audit of the financial report of Cygnus Metals Limited for the financial year
ended 31 December 2023, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Cygnus Metals Limited and the entities it controlled during the
financial year.
Ernst & Young
D Hall
Partner
28 March 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
2023 Financial Report
For the Year ended 31 December 2023
CONTENTS
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 Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
62
63
64
65
66
94
95
These financial statements are the consolidated financial statements of the consolidated entity consisting of Cygnus
Metals Limited (formerly Cygnus Gold Limited) and its subsidiaries. The financial statements are presented in the
Australian currency.
Cygnus Metals Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Cygnus Metals Limited
Level 2, 8 Richardson Street
WEST PERTH WA 6005
A description of the nature of the consolidated entity's operations and its principal activities is included in pages 9 to 36
of the Operations Review on and pages 41 to 42 of the Directors’ report, which is not part of these financial statements.
The financial statements were authorised for issue by the directors on 28 March 2024.
Through the use of the internet, the Company has ensured that its corporate reporting is timely, complete, and available
globally at minimum cost to the Company. All press releases, financial statements and other information are available
on our website: www.cygnusmetals.com.
Annual Report | 61
Consolidated Statement of Profit or
Loss & Other Comprehensive Income
For the year ended 31 December 2023
OTHER INCOME
EXPENSES
Audit and accounting
Compliance expenses
Consultants and contractors
Corporate costs
Depreciation – Property, plant and equipment
Depreciation - Right of use assets
Employee benefits expense
Exploration expenditure written off
Exploration expensed
Interest expense on lease liability
Office rent & outgoings
Payroll Tax expense
Share-based payments
Travel and accommodation
Foreign exchange losses
Results from operating activities
Finance income
Loss before income tax
Income tax expense
Loss after income tax for the year attributable to equity holders
of the Company
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Notes
3
19
2023
$
2,875,304
2,875,304
(86,297)
(130,884)
(486,979)
(561,864)
(51,482)
-
(1,208,644)
(634,937)
(62,041)
-
(155,479)
(419,510)
10(b)
(10,185,535)
(249,301)
(242,633)
(14,475,586)
(11,600,282)
118,519
(11,481,763)
(2,018,533)
(13,500,296)
22
2022
$
685,203
685,203
(40,800)
(94,402)
(491,519)
(443,820)
(40,818)
(26,266)
(641,093)
(23,879)
(59,167)
(4,479)
(38,823)
-
(394,157)
(405,161)
(306,397)
(3,010,781)
(2,325,578)
5,123
(2,320,455)
(440,773)
(2,761,228)
Exchange differences on translation of foreign operations
(113,473)
-
Items that will not be reclassified subsequently to profit or loss:
Changes in fair value of financial assets
(196,198)
(56,934)
Total comprehensive loss for the year, net of tax attributable to
(13,809,967)
(2,818,162)
equity holders of the Company
Loss per share attributable to equity holders of the Company
Basic and diluted loss per share (cents per share)
11
(5.84)
(0.45)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
Notes to the Consolidated Financial Statements.
Annual Report | 62
Consolidated Statement
of Financial Position
As at 31 December 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation
Property, plant and equipment
Investments
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Notes
4
5
2023
$
2022
$
9,316,782
1,507,476
10,824,258
13,530,678
1,779,273
15,309,951
19
23,926,379
5,538,857
132,847
201,698
24,260,924
35,085,182
5,528,242
120,238
5,648,480
2,459,306
2,459,306
8,107,786
26,977,396
47,607,870
7,779,313
6
7
8
9
154,967
397,895
6,091,719
21,401,670
3,530,497
27,959
3,558,456
440,773
440,773
3,999,229
17,402,441
25,260,644
7,051,288
(28,409,787)
(14,909,491)
26,977,396
17,402,441
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Consolidated
Financial Statements.
Annual Report | 63
Consolidated Statement of
Changes in Equity
For the year ended 31 December 2023
Share
Capital
$
10,044,146
Other
Contributed
Equity
$
105,000
Share-based
Payment
Reserve
$
5,109,203
Notes
Balance at 1 January 2022
Loss for the year
Other comprehensive loss:
Fair value adjustment of financial assets
Total comprehensive loss
Transactions with owners:
Placement of ordinary shares
Placement of Flow-Through shares
Flow-Through share placement premium
Broker option issue expense
Share issue expense
-
-
-
13,195,913
6,334,806
(2,052,304)
(1,604,862)
(762,055)
-
-
-
-
-
-
-
-
Prior Placement approved by Shareholders
105,000
(105,000)
Share-based payments
-
Balance at 31 December 2022
8
25,260,644
Loss for the year
Other comprehensive loss:
Fair value adjustment of financial assets
Exchange differences on foreign operations
Total comprehensive loss
Transactions with owners:
Placement of ordinary shares
Placement of Flow-Through shares
-
-
-
-
3,000,000
8,022,721
Flow-Through share placement premium
(3,858,181)
Issue of shares – Project acquisitions
Issue of shares - Option conversions
4,552,486
2,192,000
Issue of shares - Exercise of performance rights
9,119,251
Share issue expense
Share-based payments
(710,620)
29,569
Balance at 31 December 2023
8
47,607,870
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,604,862
-
-
394,157
-
-
-
-
-
-
-
-
-
(9,119,251)
-
10,156,947
Investment
Revaluation
Reserve
$
-
-
(56,934)
(56,934)
-
-
-
-
-
-
-
-
(196,198)
Foreign
Currency
Translation
Reserve
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Accumulated
Losses
$
(12,148,263)
Total Equity
$
3,110,086
(2,761,228)
(2,761,228)
-
(56,934)
(2,761,228)
(2,818,162)
-
-
-
-
-
-
-
13,195,913
6,334,806
(2,052,304)
-
(762,055)
-
394,157
(14,909,491)
17,402,441
(13,500,296)
(13,500,296)
-
-
(196,198)
(113,473)
-
(113,473)
(196,198)
(113,473)
(13,494,223)
(13,809,967)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
8,022,721
(3,858,181)
4,552,486
2,192,000
-
(710,620)
10,186,516
8,145,918
(253,132)
(113,473)
(28,409,787)
26,977,396
7,108,222
(56,934)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Consolidated
Financial Statements.
Annual Report | 64
Consolidated Statement of
Cash Flows
For the year ended 31 December 2023
Operating activities
Payments to suppliers and employees
Payments for exploration expenditure
Interest received
Interest payments
Other income
Net refundable sales tax payments made
Net cash used in operating activities
Investing activities
Payments for acquisition of mining tenements
Payments for capitalised exploration expenditure
Purchase of property plant and equipment
Payments to establish security deposits
Receipts from sale of mining tenements
Purchase of listed investments
Net cash used in investing activities
Financing activities
Proceeds from shares issued
Proceeds from exercise of options
Share issue costs
Principal payment for leases
Net cash provided by financing activities
Net change in cash and cash equivalents
Effect of movement in exchange rates on cash held
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of year
Notes
2023
$
2022
$
(3,188,633)
(63,155)
57,094
-
33,000
(392,507)
(3,554,201)
(1,848,054)
(10,998,818)
(28,779)
(128,950)
-
-
(13,004,601)
11,022,700
2,192,000
(710,620)
-
12,504,080
(4,054,722)
(159,174)
13,530,678
9,316,782
(2,124,114)
(49,844)
5,276
(4,510)
64,919
-
(2,108,273)
(1,315,210)
(3,292,312)
(22,704)
-
18,060
(454,830)
(5,066,996)
18,991,203
-
(761,830)
(28,502)
18,200,871
11,025,602
(306,260)
2,811,336
13,530,678
13
8
4
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Consolidated Financial
Statements.
Annual Report | 65
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Summary of Material Accounting Policies
1.
The material accounting policies adopted in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to the financial years presented, unless otherwise stated. These financial
statements cover Cygnus Metals Limited (formerly Cygnus Gold Limited) as a consolidated, for-profit entity consisting of Cygnus
Metals Limited and its subsidiaries (‘the consolidated entity’ or ‘the Group’).
(a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements and the Corporations Act 2001.
(i) Compliance with IFRS
The financial statements of Cygnus Metals Limited also comply with International Financial Reporting Standards (IFRS).
(ii) Historical cost convention
These financial statements have been prepared under the historical cost convention except for investments held at fair value
through other comprehensive income.
(iii) Going Concern
As at 31 December 2023 the Group had current assets of $10,824,258 (31 December 2022: $15,309,951), including cash and
cash equivalents of $9,316,782 (31 December 2022: $13,530,678), and current liabilities of $5,648,480 (31 December 2022:
$3,558,456).
The Group’s cashflow forecasts through to the period ended 31 March 2025 reflect that the Group will be required to raise
additional capital during this period to enable it to continue to meet its operational and planned exploration activities.
The Directors are satisfied that there is a reasonable basis to conclude that the Group can raise additional capital as and when
required and thus it is appropriate to prepare the consolidated financial report on a going concern basis as the Group has
potential options available to manage liquidity, including one or a combination of, a placement of shares, option conversion,
entitlement offer or a change in the Company’s expenditure profile.
In the event that all of the funding options available to the Group do not transpire and there is no change to the forecasted
spending pattern, there is material uncertainty about whether the Group is able to continue as a going concern and, therefore,
realise its assets and discharge its liabilities in the normal course of business at the amounts stated in the financial report.
The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset
amounts or to the amounts or classification of liabilities that might be necessary should the Group not be able to continue as
a going concern.
Principles of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities (subsidiaries)
at year end is contained in note 15. The financial statements of subsidiaries are prepared for the same reporting period as the
parent entity, using consistent accounting policies.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
Annual Report | 66
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Summary of Material Accounting Policies (continued)
1.
Parent entity disclosure
The financial information for the parent entity, Cygnus Metals Limited, disclosed in Note 16 has been prepared on the same
basis as the consolidated financial statements, other than investments in subsidiaries, which have been recorded at cost less
impairments.
(b) Functional and presentation currency
The functional currency of each entity within the group is measured using the currency of the primary economic environment
in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent
entity’s functional and presentation currency.
(c) Other income
(i) Administrative and geology services
The Company has recognised other income for the provision of administrative and geology services. In the
comparative period the Group provided vehicles for hire under short-term (daily) arrangements and geology
services. Other income was recognised over time as service was delivered or provided respectively.
(ii) Settlement of Flow-Through Share Liability
The issue of Flow-Through Shares (“FTS”) includes an issue of ordinary shares and the sale of tax deductions. At the
time the FTS are issued, the sale of tax deductions is deferred and presented as current liabilities in the statement
of financial position because the Company has not yet fulfilled its obligations to pass on the tax deductions to the
investor. When the Company fulfills its obligation the sale of tax deductions is recognised in the income statement
as other income.
(d) Operating expenses
Operating expenses are recognised in profit or loss on an accruals basis.
(e) Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and on hand and short-term deposits
with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, which are
considered an integral part of the Group’s cash management.
(f) Equity and reserves
Share capital represents the fair value of consideration received for shares that have been issued. Any transaction costs
associated with the issuing of shares are deducted from share capital, net of any related income tax benefits.
Where, at balance date, the Group has received applications for shares and the corresponding subscription monies before
issuing shares, the Group accounts for the receipt of funds at the fair value of the consideration received as Other Contributed
Equity.
Retained earnings include all current and prior period retained profits.
Refer to Note 1(p) for the Group’s accounting policy on Flow-Through Shares.
Annual Report | 67
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
1.
Summary of Material Accounting Policies (continued)
The Group maintains a share base payments reserve which accumulates the value recognised as a result of share-based awards
issued to employees or contractors for services rendered. Where amounts have accumulated in the reserve and the underlying
instruments expire, amounts are transferred from the reserve to retained earnings. Where amounts have accumulated in the
reserve and the underlying instruments have vested or been exercised, amounts are transferred from the reserve to share
capital. In the event that awards are forfeited, balances that have accumulated in the reserve are reversed through the profit
or loss.
(g)
Income taxes
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation Office (‘ATO’)
and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax
is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on
tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of
assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the
initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting
profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint arrangements is not
provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not
occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective
period of realisation, provided they are enacted or substantively enacted by the end of the reporting period.
Deferred tax liabilities are always provided for in full. The Group offsets deferred tax assets and deferred tax liabilities if and
only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle
the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected
to be settled or recovered.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or loss, except
where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in
equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively.
(h)
Employee benefits
Wages and salaries and annual leave:
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service. Examples of such benefits include wages
and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the
undiscounted amounts expected to be paid when the liabilities are settled.
Annual Report | 68
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
1. Summary of Material Accounting Policies (continued)
(i)
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group becomes
a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets or financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.
Financial Assets
All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
•
•
The financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
(i) Amortised costs and effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant period.
For financial assets other than purchased or originated credit-impaired financial assets (i.e. assets that are credit-impaired on
initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter
period, to the gross carrying amount of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the
principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that
initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the
amortised cost of a financial asset before adjusting for any loss allowance.
Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised
cost and at FVTOCI. For financial assets other than purchased or originated credit-impaired financial assets, interest income is
calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets
that have subsequently become credit-impaired.
Interest income is recognised in profit or loss and is included in the 'finance income’ line item.
Annual Report | 69
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Summary of Material Accounting Policies (continued)
1.
(ii) Equity instruments designated as at FVTOCI
On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate
investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for
trading or if it is contingent consideration recognised by an acquirer in a business combination.
A financial asset is held for trading if:
•
•
•
it has been acquired principally for the purpose of selling it in the near term; or
on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and
has evidence of a recent actual pattern of short-term profit-taking; or
it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument).
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are
measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and
accumulated in the Investment Revaluation Reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal
of the equity investments, instead, it is transferred to retained earnings.
Dividends on these investments in equity instruments are recognised in profit or loss in accordance with IFRS 9, unless the
dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in the ‘finance income’ line
item in profit or loss.
The Group designated all investments in equity instruments that are not held for trading as at FVTOCI on initial recognition.
Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of each reporting period. Specifically:
•
•
•
•
for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange
differences are recognised in profit or loss in the ‘other gains and losses’ line item;
for debt instruments measured at FVTOCI that are not part of a designated hedging relationship, exchange differences
on the amortised cost of the debt instrument are recognised in profit or loss. Other exchange differences are
recognised in other comprehensive income in the investments revaluation reserve;
for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences
are recognised in profit or loss; and
for equity instruments measured at FVTOCI, exchange differences are recognised in other comprehensive income in
the investments revaluation reserve.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at
amortised cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee
contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
Annual Report | 70
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Summary of Material Accounting Policies (continued)
1.
The Group always recognises lifetime ECL (expected credit losses) for trade receivables, contract assets and lease receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical
credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of
both the current as well as the forecast direction of conditions at the reporting date, including time value of money where
appropriate.
For all other financial instruments, the Group recognises lifetime ECL when there has been a significant increase in credit risk
since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial
recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a
financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default
events on a financial instrument that are possible within 12 months after the reporting date.
The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment
to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at
FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset,
the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay.
If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues
to recognise the financial asset and also recognises collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the
sum of the consideration received and receivable is recognised in profit or loss.
In contrast, on derecognition of an investment in an equity instrument which the Group has elected on initial recognition to
measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not
reclassified to profit or loss, but is transferred to retained earnings.
Financial liabilities and equity
Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Annual Report | 71
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Summary of Material Accounting Policies (continued)
1.
Financial liabilities
All financial liabilities are measured subsequently at amortised cost using the effective interest method or at FVTPL. However,
financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies, and financial guarantee contracts issued by the Group, are measured in accordance with the
specific accounting policies set out below.
Financial liabilities measured subsequently at amortised cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii)
designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the
amortised cost of a financial liability.
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each
reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments. These
foreign exchange gains and losses are recognised in the profit or loss for financial liabilities that are not part of a designated
hedging relationship. For those which are designated as a hedging instrument for a hedge of foreign currency risk, foreign
exchange gains and losses are recognised in other comprehensive income and accumulated in a separate component of equity.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have
expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss.
When the Group exchanges with the existing lender one debt instrument into another one with the substantially different
terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an
extinguishment of the original financial liability and the recognition of a new liability.
It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different
from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not
substantial, the difference between: (i) the carrying amount of the liability before the modification; and (ii) the present value
of the cash flows after modification is recognised in profit or loss as the modification gain or loss within other gains and losses.
Annual Report | 72
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
1. Summary of Material Accounting Policies (continued)
(j)
Impairment of assets (other than exploration and evaluation assets)
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount
is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of
impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets
(the “cash-generating unit” or “CGU”).
The Group’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be
impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated to the carrying
amounts of the assets in the unit (group of units) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
(k) Other receivables
Other receivables, which generally have 30-day terms, are recognised initially at fair value and subsequently carried at
amortised cost using the effective interest method, less an allowance for expected credit loss if required. Bad debts are written
off when identified.
(l)
Trade and other payables
Liabilities for creditors and other amounts are carried at amortised cost, which is the present value of the consideration to be
paid in the future for goods and services received, whether or not billed to the consolidated entity. The carrying period is
generally between 30 to 45 days, which is within the Groups accepted terms.
(m) Exploration and evaluation expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest.
These costs are only capitalised to the extent that they are expected to be recovered 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.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Annual Report | 73
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
1. Summary of Material Accounting Policies (continued)
Costs of site restoration are provided over the life of the project from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of permits.
Such costs have been determined using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
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.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning
the site.
(n) Share-based payments
The Group operates equity-settled share-based remuneration plans for its employees.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where
employees have been rewarded using share-based payments, the fair values have been determined indirectly by reference to
the fair value of the equity instruments granted. Where consultants have been rewarded using share-based payments, the
Group determines the fair value with direct reference to the fair value of the service unless this cannot be determined at which
point the fair value is determined indirectly by reference to the fair value of the equity instrument granted. In the circumstances
for this financial report, for consultants, the fair value of the services could not be readily determined with reference to a
service contract and the contracts have no defined period of service to which the award pertains. Therefore, the fair value has
been determined indirectly by reference to the fair value of the equity instrument granted. Fair value with reference to the
equity instrument is appraised at the grant date and excludes the impact of non-market vesting conditions (for example
profitability and sales growth targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to the share-
based payment reserve. Where vesting periods exist, the total expense is recognised straight-line over the vesting period.
Where vesting conditions are non-market based, the expense is based on the best available estimate of the number of
instruments expected to vest. Where the vesting conditions are market based, the Group uses a pricing model to determine
the fair value of each instrument.
The fair value of share-based payments to asset vendors is determined with reference to the fair value of the equity
instruments issued as consideration for the assets acquired per the terms of the relevant asset purchase agreement. If the fair
value of the transactions cannot be estimated with direct reference to the fair value of the asset received given limited fair
value information over the asset available at the time of the transaction, the fair value of each instrument is estimated using
the latest trading price of the shares relative to the date of completion of the sale.
(o) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or
as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of investing and
financing activities, which are disclosed as operating cash flows.
Annual Report | 74
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
1. Summary of Material Accounting Policies (continued)
(p) Flow-Through Shares
Flow-through shares may be issued to finance a portion of an exploration program. A flow-through share agreement transfers
the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company divides the flow-through share
into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature,
which is recognised as a liability, and ii) issued capital. Share capital for shares issued is recongised at fair value with the residual
value, or flow-through share premium, recognised as current liabilities.
The Company has elected to apply the renunciation process prospectively and has relied upon the “look-back” rule which
allows the Company to renounce eligible expenditures incurred up to an entire calendar year (i.e. 2024) following the last day
of the calendar year in which the FTS are issued (i.e. 2023)
At initial recognition the sale of tax deductions is deferred and presented as other liabilities in the balance sheet as the entity
has not yet fulfilled its obligations to pass on the tax deductions to the investor.
Upon expenses being incurred, the Company derecognises the liability and the premium is recognised as other income. The
exploration spend also gives rise to a deferred tax liability which is recognised as the difference between the carrying value
and tax base of the qualifying expenditure for the amount of the tax reduction renounced to the investors.
(q) New and amended accounting standards and interpretations issued but not yet effective
Certain new and amended accounting standards and interpretations have been published that are not mandatory for
31 December 2023 reporting periods and have not been early adopted by the Company.
The Group has assessed these new and amended standards and has determined that they do not have a material impact on
the current reporting period and are not expected to have a material impact on the Company when adopted in future reporting
periods.
Annual Report | 75
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Critical Accounting Estimates and Judgements
2.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing this Annual Financial Report, the significant judgements and estimates made by management in applying the
Entity’s accounting policies and the key sources of estimation uncertainty are detailed below.
Critical Estimates
Exploration and Evaluation Expenditure – Impairment
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s
accounting policy requires estimates and assumptions as to future events and circumstances. In particular, whether successful
development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to
this assessment is estimates and assumptions as to the presence of mineral reserves, timing of expected cash flows, exchange
rates, commodity prices and future capital requirements.
Changes in these estimates and assumptions as new information about the presence or recoverability of a mineral reserve
becomes available, may impact the assessment of the recoverable amount of exploration and evaluation assets. If, after having
capitalised the expenditure a judgement is made that recovery of the expenditure is unlikely, an impairment loss is recorded
in the statement profit or loss and other comprehensive income.
Share-Based Payments
Share-based compensation benefits are provided to employees via the Cygnus Employee Securities Incentive Plan.
Performance rights are issued for nil consideration and the term of the performance rights is determined by the Board in its
absolute discretion but will ordinarily have a three-year term up to a maximum of five years. Performance rights are subject to
lapsing if performance conditions are not met by the relevant measurement date or expiry date (if no other measurement date
is specified) or if employment is terminated. The fair value of performance rights has been calculated at the grant date and
allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of
fair value of the rights allocated to this reporting period.
The valuation models used to fair value options and performance rights take into account the exercise price (where applicable),
the term to expiry, the vesting period, the impact of dilution, the non-tradeable nature of the options or performance rights,
the share price at grant date and assumptions on the expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the options and performance rights. Expected share price volatility was
determined with reference to actual share price volatility over the historic term of the Company’s share price at grant date
commensurate with the length of the related option or performance right’s future vesting period.
Additionally, assumptions are made about the number of options and performance rights that are expected to vest, which
could change from period to period. A change in any, or a combination, of these assumptions used in the valuation model could
have a material impact on the total valuation of the options and performance rights.
Critical Judgments
Exploration and Evaluation Expenditure
The entity carries exploration and evaluation expenditure as assets for expenditure accumulated on areas of interest where it
is considered likely to be recoverable. The Group judges this to be the case where the Group has right of tenure over an area
of interest, has substantive expenditure budgeted for the area of interest and the exploration activities have not yet resulted
in sufficient information that would indicate the amounts are not recoverable up to the asset carrying value.
Annual Report | 76
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
3. Other income
Provision of geology and administrative services
Proceeds from the sale of tenements
Settlement of 2022 flow-through share liability
Settlement of 2023 flow-through share liability
Other income
4.
Cash and cash equivalents
Cash at bank and on hand
Short-term deposits
Cash and cash equivalents
2023
$
8,700
-
1,477,659
1,388,945
2,875,304
2022
$
92,498
18,060
574,645
-
685,203
2023
$
2022
$
1,883,853
13,510,678
7,432,929
20,000
9,316,782
13,530,678
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made and have original
maturities of less than 3 months, depending on the immediate cash requirements of the Group, and earn interest at the
respective short-term deposit rates.
5.
Trade and other receivables
Trade and other receivables1
Security deposits
Prepayments2
Trade and other receivables
Note:
2023
$
546,130
149,165
812,181
1,507,476
2022
$
167,267
20,000
1,592,006
1,779,273
1 - Relates to GST/QST receivables and amounts owing from the recharged of shared administration costs.
2 - $799,994 (2022: $1,516,406) relates to a deposit paid to the Company’s Canadian contractor responsible for undertaking the Company’s Canadian
exploration campaigns.
All amounts are short-term. The carrying values of trade and other receivables are considered to be a reasonable approximation
of fair value.
Annual Report | 77
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Trade and other payables
6.
Trade payables
Other payables
Flow-through share premium liability
Trade and other payables
2023
$
1,931,448
1,127,558
2,469,236
5,528,242
2022
$
1,278,254
774,584
1,477,659
3,530,497
All amounts are short-term. The carrying values of trade and other payables are considered to be a reasonable approximation
of fair value.
7. Non-current liabilities – Deferred tax liabilities
Deferred tax liability comprises temporary differences attributable to:
Opening balance
Temporary difference on relinquishment of qualifying expenditure to investors
Deferred tax liability
2023
$
440,773
2,018,533
2,459,306
2022
$
-
440,773
440,773
Annual Report | 78
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Share capital and other contributed equity
8.
The share capital of Cygnus consists only of fully paid ordinary shares; the shares do not have a par value. All shares are equally
eligible to receive dividends and the repayment of capital and represent one vote at the shareholder meetings of the Company.
Other contributed equity comprises share subscription monies received in advance of issuing of the shares.
Issued capital net of share issue costs
Opening balance 1 January 2022
Share issue – Placement
Share issue – Placement
Share issue – Director placement
Share issue – Advisor placement
Share issue – Employee placement
Share issue – Flow-through share placement
Share issue – Director placement
Share issue – Project acquisition
Share issue - Placement
Less flow-through share premium
Less broker option issue cost
Less share issue costs
Closing balance at 31 December 2022
Share issue – Project acquisition
Share issue – Option conversion
Share issue – Project acquisition
Share issue – Project acquisition
Share issue – Project acquisition
Share issue - Placement
Share issue – Flow-through share placement
Share issue – Performance right conversion
Share issue – Performance right conversion
Share issue – Option conversion
Share issue – Performance right conversion
Share issue – Project acquisition
Share issue – Performance right conversion
Less flow-through share premium
Less share issue costs
Closing balance at 31 December 2023
2023
Shares
on issue
291,259,139
Date
21/01/22
08/08/22
21/10/22
21/10/22
18/11/22
23/11/22
29/11/22
29/11/22
16/12/22
11/04/23
02/05/23
18/05/23
06/07/23
25/08/23
29/08/23
24/08/23
06/09/23
22/09/23
22/09/23
22/09/23
17/11/23
30/11/23
2022
Shares
on issue
183,874,212
Shares
117,321,005
664,310
29,200,000
4,240,000
2,000,000
500,000
8,677,817
1,142,861
1,946,400
18,181,819
-
-
-
183,874,212
3,250,000
22,800,000
4,216,500
9,129,825
500,000
13,333,333
18,934,273
28,950,000
300,000
4,600,000
154,496
1,216,500
300,000
-
-
291,559,139
2023
$
2022
$
38,488,618
Issue Price $
0.1150
0.1250
0.1250
-
-
0.7300
0.3500
0.2770
0.4400
-
-
-
0.2450
0.0800
0.2500
0.2475
0.2000
0.2250
0.4275
-
-
0.0800
-
0.2770
-
-
-
25,260,644
Total $
10,149,146
76,760
3,650,000
530,000
-
-
6,334,806
400,000
539,153
8,000,000
(2,052,304)
(1,604,862)
(762,055)
25,260,644
796,250
1,824,000
1,054,125
2,265,140
100,000
3,000,000
8,022,721
8,796,751
145,500
368,000
66,000
336,971
140,569
(3,858,181)
(710,620)
47,607,870
Each share has the same right to receive dividend and the repayment of capital and represents one vote at the shareholders’
meeting of Cygnus Metals Limited.
Annual Report | 79
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
9. Reserves
Share-based payment reserve
Investment revaluation reserve
Foreign currency translation reserve
Total reserves
10. Share-based payments
(a) Share options
2023
$
2022
$
8,145,918
7,108,222
(253,132)
(113,473)
7,779,313
(56,934)
-
7,051,288
The share-based payment reserve records items recognised on valuation of director, employee and contractor share options
and performance rights. Information relating to options issued, exercised and lapsed during the current and comparative
financial year and outstanding at the end of the current and comparative financial year, is set out below.
Grant Date
Expiry date
Exercise
price
Balance at
start of year
Issued
Exercised
Lapsed
Balance at
the end of
the period
Vested and
exercisable
at end of
the period
2023
22/09/2020
22/09/2023
07/11/2021
15/11/2024
23/12/2021
21/01/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
$0.08
$0.16
$0.16
$0.25
$0.50
$0.75
$1.00
Weighted average exercise price:
Weighted average remaining contractual life:
2022
22/09/2020
22/09/2023
07/11/2021
15/11/2024
23/12/2021
21/01/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
21/10/2022
21/10/2025
$0.08
$0.16
$0.16
$0.25
$0.50
$0.75
$1.00
29,500,000
5,000,000
3,500,000
1,500,000
1,500,000
1,500,000
1,500,000
44,000,000
$0.20
29,500,000
5,000,000
3,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
1,500,000
1,500,000
1,500,000
38,00,000
6,000,000
Weighted average exercise price:
$0.14
$0.63
Weighted average remaining contractual life:
27,400,000
(2,100,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
5,000,000
3,500,000
3,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
27,400,000
(2,100,000)
14,500,000
14,500,000
$0.08
$0.08
$0.34
$0.34
1.26 years
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29,500,000
29,500,000
5,000,000
5,000,000
3,500,000
3,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
44,000,000
44,000,000
$0.17
$0.17
1.25 years
Annual Report | 80
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
10.
Share-based payments (continued)
Fair value of unlisted options granted
There were no options granted during the current or comparative reporting periods.
(b) Performance rights
Information relating to performance rights issued and lapsed during the current financial year and outstanding at the end of
the current financial year, is set out below.
Tranche
Grant
Date
Vesting
date
Expiry
date
Balance at
start of year
Granted
Exercised
Lapsed
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
A1
A2
A3
A4
A5
A6
15/08/22
15/08/22
28/09/22
28/09/22
4/10/22
4/10/22
16/11/22
16/11/22
16/11/22
16/11/22
19/11/22
19/11/22
31/01/23
31/01/23
31/01/23
31/01/23
31/01/23
31/01/23
07/02/23
07/02/23
26/03/23
26/03/23
26/03/23
02/03/23
02/03/23
02/03/23
20/04/23
20/04/23
20/04/23
28/08/23
28/08/23
28/08/23
29/08/23
29/08/23
29/08/23
29/08/23
29/08/23
29/08/23
29/08/23
15/06/24
30/11/24
30/09/23
29/08/23
29/08/23
01/11/24
29/08/23
29/08/23
13/02/28
13/02/28
13/02/28
29/08/23
29/08/23
29/08/23
13/02/28
05/04/25
24/02/24
24/02/25
24/02/26
22/05/24
22/05/25
22/05/26
31/12/25
31/12/25
31/12/25
21/10/27
21/10/27
21/10/27
21/10/27
21/10/27
21/10/27
30/07/25
30/07/25
30/11/26
30/09/25
21/10/27
21/10/27
13/02/28
13/02/28
13/02/28
13/02/28
13/02/28
13/02/28
21/10/27
21/10/27
13/02/28
13/02/28
03/04/28
04/05/28
04/05/28
04/05/28
04/05/28
04/05/28
04/05/28
05/09/28
05/09/28
05/09/28
8,350,000
8,350,000
4,500,000
4,500,000
150,000
150,000
250,000
250,000
100,000
300,000
1,000,000
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28,900,000
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000*
2,000,000*
2,000,000*
4,000,000*
2,500,000*
2,500,000*
250,000
250,000
300,000
400,000
300,000
50,000
50,000
50,000
50,000
50,000
50,000
1,059,603*
1,059,603*
1,059,603*
22,978,809
(6,600,000)
(6,600,000)
(4,500,000)
(4,500,000)
(150,000)
(150,000)
(250,000)
-
-
(300,000)
(1,000,000)
(1,000,000)
-
(2,000,000)
(2,000,000)
-
-
-
(250,000)
(250,000)
(300,000)
-
-
-
-
-
-
-
-
-
-
-
(29,850,000)
(250,000)
(250,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(50,000)
(50,000)
(50,000)
-
-
-
(650,000)
Balance at
end of year
1,500,000
1,500,000
-
-
-
-
-
250,000
100,000
-
-
-
5,000,000
-
-
4,000,000
2,500,000
2,500,000
-
-
-
400,000
300,000
50,000
50,000
50,000
-
-
-
1,059,603
1,059,603
1,059,603
21,378,809
Note * Approval for the issue of these securities was obtained under Listing Rule 10.14.
Vested and
exercisable
at end of the
period
Value of rights
expensed
during the year
$
1,500,000
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
1,575,688
1,575,688
868,990
868,990
42,309
42,309
95,391
76,701
23,762
124,910
374,699
374,699
1,279,904
1,000,000
1,000,000
-
208,755
203,482
122,500
122,500
66,000
10,811
25,007
14,819
7,338
4,881
-
-
-
36,151
-
39,248
10,185,535
Annual Report | 81
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Share-based payments (continued)
10.
The terms of performance rights issued during the year include:
Tranche
M
S
N
T
O, U
P
Q,V
R
W
X
Y
Z
A1
A2
A3
A4
A5
A6
Vesting conditions
2 years’ continuous employment with the Company from the date of appointment (ie. up to and including 1 November
2024).
The Company reporting a JORC compliant Inferred Mineral Resource of 5MT at a minimum grade of 0.8% Li20 on or before
21 October 2026.
The Company reporting a JORC compliant Inferred Mineral Resource of 5MT at a minimum grade of 0.8% Li20 on or before
13 February 2028.
The Company reporting a JORC compliant Inferred Mineral Resource of 10MT at a minimum grade of 0.8% Li20 on or before
21 October 2026.
The Company reporting a JORC compliant Inferred Mineral Resource of 10MT at a minimum grade of 0.8% Li20 on or before
13 February 2028.
The Company reporting a JORC compliant Inferred Mineral Resource of 20MT at a minimum grade of 0.8% Li20 on or before
13 February 2028.
The Company achieving a market capitalisation of at least $150,000,000 over a period of not less than 10 consecutive
trading days on which trades in the Company’s shares actually occur.
The Company’s share price having a 10-day VWAP of at least $1.00 or a market capitalisation of at least $250,000,000 over
a period of not less than 10 consecutive trading days on which trades in the Company’s shares actually occur.
Remaining engaged by the Company as a Director for a continuous period of 24 months from the date of appointment (ie.
up to and including 3 April 2025).
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2024.
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2025.
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2026.
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 22 May 2024.
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 22 May 2025.
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 22 May 2026.
The Company’s TSR exceeds the median TSR of the Peer Group for the Performance Period. The proportion to vest will be
calculated as:
- If TSR >50th percentile – 100% vesting
- If TSR between 25th and 50th percentile – 50% vesting
- If TSR <25% percentile – 0% vesting
The Company reporting the discovery or acquisition of a JORC compliant Inferred Mineral Resource of 5MT on any project
(excluding the Pontax Project) at a minimum grade of 0.8% Li20 on or before 31 December 2025.
Continuous employment with the Company up to and including 31 December 2025.
Annual Report | 82
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Share-based payments (continued)
10.
Fair value of performance rights
The following table illustrates the inputs used to calculate the fair value of performance rights issued during the current
reporting period:
Tranche
Share price at grant date
Vesting test date
Expiry date
Days to expiry
Number issued
Valuation per right
Probability
M
$0.46
01/11/24
13/02/28
1,505
N,O,P
$0.46
13/02/28
13/02/28
1,505
Q
$0.46
13/02/28
13/02/28
1,505
R
$0.46
13/02/28
13/02/28
1,505
5,000,000
8,000,000
2,500,000
2,500,000
$0.50
100%
$0.50
30%
$0.475
100%
$0.463
100%
S,T
$0.49
21/10/26
21/10/27
1,390
500,000
$0.49
100%
U
$0.22
13/02/28
13/02/28
1,505
300,000
$0.22
100%
Valuation per class of rights
$2,500,000
$2,600,000
$1,187,500
$1,157,500
$245,000
$66,000
Tranche
Share price at grant date
Vesting test date
Expiry date
Days to expiry
Number issued
Valuation per right
Probability
Valuation per class of rights
Tranche
Share price at grant date
Vesting test date
Expiry date
Days to expiry
Number issued
Valuation per right
Probability
V
$0.22
13/02/28
13/02/28
1,505
400,000
$0.1723
100%
$68,920
A2
$0.29
22/05/25
04/05/28
1,586
50,000
$0.29
0%
W
$0.22
03/04/25
13/02/28
1,505
300,000
$0.22
100%
$66,000
A3
$0.29
22/05/26
04/05/28
1,586
50,000
$0.29
0%
X
$0.35
24/02/24
04/05/28
1,586
50,000
$0.35
100%
$17,500
A4
$0.185
31/12/25
05/09/28
1,710
Y
$0.35
24/02/25
04/05/28
1,586
50,000
$0.35
100%
$17,500
A5
$0.185
31/12/25
05/09/28
1,710
Z
$0.35
24/02/26
04/05/28
1,586
50,000
$0.35
100%
$17,500
A6
$0.185
31/12/25
05/09/28
1,710
1,059,603
1,059,603
1,059,603
$0.2825
100%
$0.295
100%
$0.295
100%
Valuation per class of rights
$14,500
$14,500
$299,338
$312,583
$312,583
A1
$0.29
22/05/24
04/05/28
1,586
50,000
$0.29
0%
$14,500
Annual Report | 83
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
11. Loss per share
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the Company as
the numerator (i.e. no adjustments to loss were necessary in either 2023 or 2022).
Net loss attributable to ordinary equity holders of the Company
Weighted average number of ordinary shares outstanding during the year used in
calculating basic and diluted loss per share
Basic and diluted loss per share (cents per share)
2023
$
2022
$
(13,500,296)
(2,761,228)
231,027,237
132,735,993
(5.84)
(0.45)
As at 31 December 2023, the Group had 14,500,000 unlisted share options exercisable (2022: 44,000,000) and 21,378,809
performance rights (2022: 28,900,000), which are not included in diluted loss per share since they are antidilutive for the
periods presented.
12. Auditor remuneration
Audit and review of financial statements
Auditors of Cygnus Metals Limited – Ernst & Young
Total auditor’s remuneration
13. Reconciliation of cash flows from operating activities
Loss for the period
Depreciation and amortisation
Depreciation on right of use assets
Exploration and evaluation costs written-off
Share-based payment expense
Unrealised foreign exchange losses
Deferred tax expense
Net movement in Flow-Through Share liability
Other
Net changes in working capital:
Change in trade and other receivables
Change in provisions
Change in trade and other payables
Net cash used in operating activities
2023
$
85,000
85,000
2022
$
40,000
40,000
2023
$
2022
$
(13,500,297)
(2,761,228)
51,482
-
634,937
10,185,535
242,633
2,018,533
(2,866,604)
184,363
271,797
92,279
(868,859)
(3,554,201)
40,818
26,266
23,879
394,157
306,397
440,773
574,645
384,407
1,704,179
21,675
(3,264,241)
(2,108,273)
Annual Report | 84
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
14. Related Party Transactions
KMP remuneration
Short term employee benefits
Post-employment benefits
Share-based payments
Total
2023
$
1,093,305
60,766
6,093,177
7,247,248
2022
$
456,294
16,001
121,006
593,301
Individual Directors’ and executives’ compensation disclosures
Information regarding individual directors and executive’s compensation and some equity instruments disclosures as required
by Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report on pages 47 to
56.
Apart from the details disclosed in this note, no Director has entered into a material contract with the Company since the end
of the previous financial year and there were no material contracts involving directors’ interests existing at the end of the
current period.
14.1 Other related party transactions and arrangements
The following transactions and arrangements with Director related parties occurred during the current and comparative
reporting periods:
–
Former Director Shaun Hardcastle is a Partner of Hamilton Locke Lawyers which provided legal services to the Company to the
value of $155,307 during 2023 (2022: $137,025). There was $995 owing to Hamilton Locke Lawyers by the Company at 31
December 2023 (2022: $36,910).
Blue Leaf Corporate Pty Ltd, a company owned by Michael Naylor, provided company secretarial and financial management
services to the Company during 2023 to the value of $42,000 (2022: $118,500). Acting as joint company secretary up to her
resignation as joint company secretary on 1 February 2023, Susan Field was under contract with Blue Leaf Corporate Pty Ltd
and was remunerated $5,000 (2022: $60,000) for her contribution of services to Cygnus Metals Limited which has been
disclosed as remuneration in the table on page 46. There were no amounts owing to Blue Leaf Corporate Pty Ltd by the
Company at 31 December 2023 (2022: Nil).
Belltree Corporate Pty Ltd, a company that Michael Naylor is a director of, and Michael Naylor and former Director Shaun
Hardcastle have an indirect interest in, provided company secretarial services to the Company during the year ended
31 December 2023 totalling $89,500 (2022: $7,000). There were no amounts owing to Belltree Corporate Pty Ltd by the
Company at 31 December 2023 (2022: Nil).
Exia-IT Pty Ltd, of which Belltree Corporate Pty Ltd holds an interest and Michael Naylor holds an interest in Belltree Corporate
Pty Ltd, provided information technology management services to the Company during the year ended 31 December 2023
totalling $68,923 (2022: Nil). There were no amounts owing to Exia-IT Pty Ltd by the Company at 31 December 2023 (2022:
Nil).
During the year ended 31 December 2023 the Company paid $196,960 (2022: $266,599) for shared administrative, head office
rent and head office fit-out costs to FireFly Metals Limited (formerly Auteco Minerals Limited), of which Ray Shorrocks and
Michael Naylor were directors in 2023. $25,385 was owing to FireFly Metals Limited by the Company at 31 December 2023
(2022: $151,716).
Bellavista Resources Ltd, a company that Michael Naylor is a director of, recharged shared office costs to the Company during
the year ended 31 December 2023 totalling $64,987 (2022: Nil). $3,399 was owing to Bellavista Resources Ltd by the Company
at 31 December 2023 (2022: $13,114).
Annual Report | 85
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Related Party Transactions (continued)
14.
Bellevue Gold Limited, a company that Michael Naylor is a director of, recharged shared administrative costs to the Company
during the year ended 31 December 2023 totalling $20,480 (2022: Nil). $14,440 was owing to Bellevue Gold Limited by the
Company at 31 December 2023 (2022: Nil).
Mitre Mining Corporation Ltd, a company that Ray Shorrocks is a director of, recharged shared office costs to the Company
during the year ended 31 December 2023 totalling $8,325 (2022: Nil). $8,325 was owing to Mitre Mining Corporation Ltd by
the Company at 31 December 2023 (2022: Nil).
Terms and conditions of transactions with related parties
Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding
balances at year-end are unsecured and interest-free and settlement occurs in cash and are presented as part of trade
payables. There have been no bank guarantees provided for any related party payables. Amounts shown are net of GST paid
or payable.
15. Subsidiaries
Name of Entity
Country of
Incorporation
2023
% equity
interest
2022
% equity
interest
Parent Entity
Cygnus Metals Limited
Subsidiaries
Deneb Resources Pty Ltd
Cygnus Gold (Projects) Pty Ltd
Cygnus (JV Projects) Pty Ltd
Avenir Metals (Australia) Pty Ltd
Avenir Metals (Canada) Limited
Australia
Australia
Australia
Australia
Australia
Canada
100
100
100
100
100
100
100
100
100
100
100
100
Annual Report | 86
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
16. Parent entity disclosure
Result of the parent entity
Loss for the year after tax
Other comprehensive loss
Total comprehensive loss for the year
Financial position of the parent entity at year end:
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Contributed equity
Reserves
Accumulated losses
17. Financial risk management
2023
$
27,464,733
309,672
27,774,405
10,469,508
25,842,007
36,311,515
5,553,081
17,217,088
22,770,169
13,541,126
47,607,870
7,892,787
(41,959,531)
2022
$
2,716,982
56,934
2,773,916
15,267,672
6,552,212
21,819,884
3,562,117
440,773
4,002,890
17,816,994
25,260,644
7,051,149
(14,494,799)
Credit risk
The carrying amount of the Group’s financial assets represents the Group’s maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
2023
$
2022
$
Cash and cash equivalents
9,316,782
13,530,678
Trade and other receivables
21,490
41,290
The Group’s cash and cash equivalents and term deposits at call are held with bank and financial institution counterparties,
which are rated at least AA-, based on rating agency S&P Global Ratings.
For trade receivables, the Group applies a simplified approach in calculating Expected Credit Losses (“ECLs”). Therefore, the
Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting
date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic environment.
As at 31 December 2023, no receivables were more than 30 days past due (2022: Nil). No receivables are considered to have
a material credit risk.
Annual Report | 87
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
17. Financial risk management (continued)
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities.
The Group manages liquidity risk by monitoring forecast cash flows, only investing surplus cash with major financial institutions;
and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The Board meets on a regular basis to analyse financial risk exposure and evaluate treasury management strategies in the
context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks to assist
the Group in managing its cash flows. Financial liabilities are expected to be settled on the following basis:
Not later than 45 days
Greater than 45 days and less than 12 months
Total
Market risk
2023
$
3,059,900
2,469,236
5,529,136
2022
$
2,050,844
1,447,659
3,498,503
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
Price risk on investments
The Group is exposed to equity price risks arising from equity investments. The Group’s investments are listed on the Toronto
Stock Exchange (TSXV).
Listed investments – CAD$182,000 (2022: CAD$406,250)
A change of 10% in the share price at the end of the reporting period would have increased/(decreased) the investment
revaluation reserve component of equity as a result of gains/losses on equity securities classified as FVOCI by the amounts
shown below.
Carrying Amount
31 December
2023
$
201,698
Carrying Amount
31 December
2022
$
454,830
The analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2022.
10% increase
10% decrease
20,170
(20,170)
45,483
(45,483)
Annual Report | 88
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
17. Financial risk management (continued)
Foreign exchange rate risk
The Group is exposed to foreign exchange rate risk arising from equity investments listed on the Toronto Stock Exchange
(TSXV), although given the size of these investments the directors do not anticipate that significant fluctuations in related
foreign currencies would result in a material change to the valuation of these assets at the end of the current reporting period.
The Group is also exposed to foreign exchange rate risk arising from cash and deposits held in Canadian dollars. At the reporting
date the sensitivity for the Group’s foreign exchange exposures was:
Cash on deposit – CAD$5,097,476 (2022: CAD$5,336,389)
Deposits with suppliers – CAD$543,000 (2022: CAD$1,300,000)
Listed investments – CAD$182,000 (2022: CAD$406,250)
Totals
Carrying Amount
31 December
2023
$
5,649,187
601,770
201,698
6,452,655
Carrying Amount
31 December
2022
$
5,882,264
1,516,406
454,830
7,853,500
A change of 10% in CAD:AUD foreign exchange rates at the end of the reporting period would have increased/(decreased)
profit and loss and equity by the amounts shown below.
The analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2021.
10% increase
10% decrease
Interest rate risk
645,265
(645,265)
785,350
(785,350)
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s cash. Cash includes funds
held in term deposits and cheque accounts during the year, which earned variable interest at rates ranging between 0.05% and
3.00% (2022: 0.05 % and 0.30%), depending on the bank account type and account balances.
The Group has no loans or borrowings.
At the reporting date the interest rate sensitivity for the Group’s interest-bearing financial instruments was:
Variable rate financial assets
Carrying Amount
31 December
2023
$
9,316,782
Carrying Amount
31 December
2022
$
13,530,678
A change of 100 basis points in the interest rates at the end of the reporting period would have increased/(decreased) profit
and loss and equity by the amounts shown below.
The analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2021.
100bp increase
100bp decrease
Capital management policies and procedures
9,317
(9,317)
13,531
(13,531)
The Board policy is to maintain a capital base to maintain investor, creditor and market confidence and to sustain future
development of the business. Capital consists of ordinary shares and retained earnings (or accumulated losses). The Board of
Directors manages the capital of the Group to ensure that the Group can fund its operations and continue as a going concern.
There are no externally imposed capital requirements.
Annual Report | 89
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
18. Commitments and contingent assets and liabilities
Due to the nature of the Group’s operations in exploring and evaluating areas of interest, it is difficult to accurately forecast
the nature or amount of future expenditure, although it will be necessary to incur expenditure in order to retain present
interests in mineral tenements. Annual rents on exploration licenses held by the Group are $154,251 (2022: $169,994) with a
minimum exploration commitment of $990,334 (2022: $899,500) per annum.
The Group does not have any capital commitments at 31 December 2023 (2022: Nil).
19. Exploration and evaluation
Opening balance
Expenditure incurred during the year – Australian tenements
Expenditure incurred during the year – Canadian tenements
Acquisition costs – Canadian tenements
Exploration expenditure written off
Closing balance
Asset Acquisitions
2023
$
5,538,857
1,319,326
11,207,656
6,495,477
(634,937)
23,926,379
2022
$
453,546
1,119,654
2,135,709
1,853,827
(23,879)
5,538,857
On 28 March 2023, Cygnus announced that it had entered into option agreements with 9219-8845 QC. Inc. (Canadian Mining
House) (“CMH”), Anna Rosa Giglio and Steve Labranche (together, the “Vendors”) to acquire additional ground comprised of
two projects: Sakami and Auclair Extension (Beryl Property). The terms of these option agreements are outlined below:
Auclair Extension (Beryl Property)
In order for Cygnus to acquire a 100% interest in the project and all mineral rights, Cygnus is required to pay the Vendors
C$395,000 in cash and 4,000,000 fully paid ordinary shares in Cygnus, in aggregate. In addition to the above payments, Cygnus
must incur C$1,000,000 in exploration expenditure within the first 36 months following the closing of the Option Agreement.
Sakami Project
In order for Cygnus to earn a 100% interest (in all mineral rights) at Sakami, Cygnus is required to pay the Vendors C$300,000
in cash and 3,450,000 fully paid ordinary shares in Cygnus, in aggregate. In addition to the above payments, Cygnus must incur
exploration expenditure to the amount of C$1,000,000 within the first 36 months of closing the Option Agreement.
Sirios Project
In February 2023, Cygnus completed a third land acquisition surrounding Pontax. The additional land, comprising 70 individual
claims covering 40km2, was acquired from TSXV-listed Sirios Resources Inc. (“Sirios”) and sits immediately north-east of, and
adjacent to, Cygnus’ Pontax Project.
Cygnus acquired the additional ground through an outright purchase from Sirios comprising an upfront payment of C$1.2m in
cash plus 750,000 fully paid ordinary shares.
None of the above acquisitions constitute a business combination in accordance with AASB 3 Business Combinations and were
accounted for as asset acquisitions.
Annual Report | 90
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
19. Exploration and evaluation (continued)
Project earn-in and acquisition milestones
The following outlines the remaining terms of existing project option earn-in or acquisition agreements that the Group was a
party to prior to the commencement of the current reporting period.
Pontax Lithium Project (CY5 51%)
The Company may earn a further 19% interest (to 70%) in the Project (“Stage 2 Earn-In") from Stria Lithium Inc by:
expending C$6,000,000 on exploration in the 30-month period commencing on the date that the Company satisfies
the Stage 1 Earn-in (ie. by January 2026); and
making a cash payment to Stria of C$3,000,000.
Megawatt Lithium Projects
In order to exercise the first option and acquire a 51% interest in the MegaWatt Projects (“First Option”), the Company must
commit C$2,000,000 towards exploration on the MegaWatt Projects, as follows:
C$500,000 of exploration expenditure within the first 12 months of the MegaWatt Option Agreement (“Agreement”)
(completed in October 2023);
a further C$500,000 of exploration expenditure within the second 12 months of the Agreement; and
a further C$1,000,000 of exploration expenditure within the third 12 months of the Agreement.
In order to acquire a further 29% interest in the MegaWatt Projects (“Second Option”), Cygnus must:
pay cash consideration to MegaWatt of $50,000 within 30 days of the satisfaction of the First Option;
file a NI 43-101 or JORC Code compliant mineral resource estimate which establishes a lithium oxide resource on the
Property of at least 5MT with an average grade of not less than 0.8% Li2O in any resource category as defined in NI43-
101 or the JORC Code, by the date which is no later than 5 years from the exercise of the First Option; and
pay cash consideration to MegaWatt of $1,000,000 within 3 days of filing the above report.
Pontax Extension Lithium Project (Canadian Mining House)
In order to complete the acquisition of the project claims, the Company must 24 months after the Approval Date (November
2022), pay a further C$30,000 in cash and issue a further 486,801 Shares. The Company must also incur total expenditure of
C$1,000,000 inside the first 36 months of the Approval Date (C$250,000 inside the first 12 months (completed in 2022,
C$750,000 inside the first 24 months and C$1,000,000 inside the first 36 months).
Fair Value of Share-Based Payments
The fair value of share-based payments to asset vendors, which includes the shares issued as described and valued above, have
been determined with reference to the fair value of the equity instruments. For shares granted, the fair value of each
instrument has been estimated using the latest trading price of the shares relative to the date of completion of the sale. The
fair value of the transactions could not be estimated with direct reference to the fair value of the asset received given limited
fair value information over the asset available at the time of the transaction.
Capitalised expenditure written off
Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded that
capitalised expenditure is unlikely to be recovered by sale or future exploitation.
During the year indicators of impairment were identified on certain exploration and evaluation assets in accordance with AASB
6 Exploration for and Evaluation of Mineral Resources. As a result of this review, write-offs totalling $634,937 have been
recognised (2022: $23,879) in relation to areas of interest where the directors have concluded that capitalised expenditure is
unlikely to be recovered by sale or future exploitation.
Annual Report | 91
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
20. Operating segments
The Group has identified the Managing Director in consultation with the full board of directors as the chief operating decision
maker (“CODM”). The CODM receives details of expenditure incurred across three segments being exploration in Canada,
exploration in Western Australia and corporate and unallocated expenditure.
21. Post reporting date events
There have not been any events that have arisen between 31 December 2023 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations
of the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
Annual Report | 92
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2023
Income tax expense
22.
The major components of tax expense and the reconciliation of the expected tax expense based on the effective tax rate of
Cygnus Metals Limited at 25% (2022: 25%) and the reported tax expense in profit or loss are as follows:
2023
$
2,018,533
2,018,533
2022
$
440,773
440,773
(11,481,763)
(2,870,440)
(2,320,455)
(580,114)
2,539,271
9,233
19,164
(716,651)
2,018,533
101,665
5,467
11,417
(143,661)
440,773
1,031,418
605,226
(11,996)
2,018,533
-
440,773
(12,642)
(16,826)
(47,681)
323,418
(718,124)
35,794
2,875
433,185
-
3,882,826
239,020
4,121,846
(11)
(8,893)
-
205,727
(388,220)
13,342
10,000
168,055
-
2,863,302
-
2,863,302
Tax expense comprises:
Deferred tax expense
Tax expense
Accounting loss excluding income tax
Total income tax expense
Non-deductible expenses for tax purposes:
Share-based payments expense
Foreign expenditure
Other
Non-assessable income – flow-through shares
Settlement of flow-through share liability
Deferred tax:
Relating to origination or reversal of temporary differences
Subsidiary tax rate differential
Income tax expense attributable to entity
Recognised deferred tax balances:
Deferred tax asset temporary differences:
Trade and other receivables
Prepayments
Receivables - Assets
Other
Exploration assets
Employee entitlements
Accrued expenses and provisions
Deferred tax asset losses
Recognised deferred taxes
Deferred taxes arising from temporary differences and unused tax losses not brough to account:
Deferred tax asset losses – Australian activities
Deferred tax asset losses – Canadian activities
Total deferred tax assets not brought to account
Annual Report | 93
Directors’ Declaration
For the year ended 31 December 2023
In the opinion of the Directors of Cygnus Metals Limited:
a.
The financial statements and notes of Cygnus Metals Limited are in accordance with the Corporations Act 2001 (Cth),
including:
I. Giving a true and fair view of its consolidated financial position as at 31 December 2023 and of its
performance for the year ended on that date; and
II.
Complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Act 2001 (Cth); and
b.
There are reasonable grounds to believe that Cygnus Metals Limited will be able to pay its debts as and when they
become due and payable, subject to the matters set out in Note 1(a) to the financial report.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 (Cth) from the Managing
Director and Chief Financial Officer for the year ended 31 December 2023.
Note 1 confirms that the financial statements also comply with International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
David Southam
Managing Director
Perth, Western Australia, 28 March 2024
Annual Report | 94
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11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent auditor’s report to the members of Cygnus Metals
Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Cygnus Metals Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 31
December 2023, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, notes to the consolidated financial statements, including a summary of material
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:
a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December
2023 and of its consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(a) in the financial report which describes the principal conditions that
raise doubt about the Group’s ability to continue as a going concern. These events or conditions
indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
Key audit matter
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
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related to going concern section, we have determined the matter described below to be the key audit
matter to be communicated in our report. For the matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, Including in relation to this matter. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matter below, provide the basis for our audit opinion on the
accompanying financial report.
1. Carrying value of exploration and evaluation assets
Why significant
How our audit addressed the key audit matter
As disclosed in Note 19 of the financial report,
the Group carries exploration and evaluation
assets of $23,926,379 as at 31 December
2023.
We evaluated the Group’s assessment as to whether
there were any indicators of impairment which
would require the carrying value of exploration and
evaluation assets to be tested for impairment. In
performing our audit procedures, we:
The carrying amount of exploration and
evaluation assets is assessed for impairment by
the Group when facts and circumstances
indicate that an exploration and evaluation asset
may exceed its recoverable amount.
The determination as to whether there are any
indicators to require an exploration and
evaluation asset to be assessed for impairment,
involves a number of judgments including
whether the Group has tenure, will be able to
perform ongoing expenditure and whether there
is sufficient information for a decision to be
made that the area of interest is not
commercially viable. During the year, the Group
determined that there had been no indicators of
impairment of its exploration and evaluation
assets.
Given the size of the balance and the judgmental
nature of impairment indicator assessments
associated with exploration and evaluation
assets, we consider this a key audit matter.
Considered the Group’s rights to explore in the
relevant exploration areas which included
obtaining and assessing supporting
documentation such as license agreements and
correspondence with relevant government
agencies.
Considered the Group’s intention to carry out
significant exploration and evaluation activities
in the relevant exploration areas which
included assessing whether the Group’s cash-
flow forecasts included planned exploration
and evaluation activities, and enquiring with
senior management and Directors as to the
intentions and strategy of the Group.
Assessed whether any exploration and
evaluation data existed to indicate that the
carrying amount of exploration and evaluation
assets is unlikely to be recovered through
development or sale.
Assessed the adequacy of disclosures in the
financial report.
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Information other than the financial statements and auditor’s report
The Directors are responsible for the other information. The other information comprises the
information included in the Company’s Annual Report for the year ended 31 December 2023, but
does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
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 consistent with the financial
report and our knowledge obtained in the audit or otherwise doesn’t appear to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the Directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment 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
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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.
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 to the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current year 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.
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Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors' report for the year ended 31
December 2023.
In our opinion, the Remuneration Report of Cygnus Metals Limited for the year ended 31 December
2023, 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.
Ernst & Young
D Hall
Partner
Perth
28 March 2024
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Liability limited by a scheme approved under Professional Standards Legislation
ASX Additional Information
In accordance with ASX Listing Rule 4.10, the following information is provided as at 8 March 2024.
Top 20 holders of ordinary shares
Rank Name
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
SYMORGH INVESTMENTS PTY LTD
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