1
Annual Report
30 June 2024
ABN 48 002 678 640
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CONTENTS
PAGE
Corporate Directory
2
Chairman’s Letter
3
Strategy and Review of Operations
5
Directors’ Report
9
Consolidated Statement of Profit or Loss and Other Comprehensive Income
21
Consolidated Statement of Financial Position
22
Consolidated Statement of Changes in Equity
23
Consolidated Statement of Cash Flows
24
Notes to the Consolidated Financial Statements
25
Consolidated Entity Disclosure Statement
48
Directors’ Declaration
49
Auditor’s Independence Declaration
50
Independent Auditor’s Report
51
ASX Additional Information
56
About Cyprium Metals Limited and Schedule of Tenements
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CORPORATE DIRECTORY
Directors
Auditors
Matthew (Matt) Fifield (Executive Chairman)
HLB Mann Judd
Gary Comb (Non-Executive Director)
Level 4, 130 Stirling Street
Ross Bhappu (Non-Executive Director)
Scott Perry (Non-Executive Director)
Perth WA 6000
Company Secretary
Website
David Hwang
www.cypriummetals.com
Registered Office & Principal Place of Business
Share Registry
Level 1
Automic
437 Roberts Road
Level 5, 191 St Georges Terrace
Subiaco WA 6008
Perth NSW 6000
Telephone: +61 8 6374 1550
Telephone: 1300 288 664 or +61 2 8072 1400
Securities Exchange
Notice of Annual General Meeting
Australian Securities Exchange
10.00 am on 28 November 2024 at
ASX Code: CYM
Four Point by Sheraton Perth
707 Wellington Street Perth WA 6000
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CHAIRMAN’S LETTER
Fellow Shareholders,
Following you will find the FY 2024 Annual Report for Cyprium Metals Limited. Please note that we have
changed our financial year end from 31 December to 30 June to align with common practice. This Annual
Report therefore covers the period from 1 January 2024 to 30 June 2024 only (the Reporting Period), and
our next Annual Report will cover the following twelve months.
I am very proud with what we have accomplished across the Reporting Period. As previously described,
calendar year 2023 was a difficult year for Cyprium – characterised by distress, lack of cohesive direction
and poor communication.
By comparison, in this Reporting Period and up to the date of this letter, you will have seen Cyprium build
momentum through delivering and communicating tangible technical outputs.
The vision of the Board and executive suite remain the same: to build Australia’s next great copper
company. Cyprium has rare and valuable brownfield Australian copper assets that can be quickly and
economically brought to a market that is demanding copper. We also have a valuable portfolio of
exploration and development assets that are the next logical growth prospects for the Company.
Our direction is clear – long-term value in the resumption of copper concentrate production at Nifty, and
short-term revenue opportunity through resumption of copper cathode production.
I am excited about the team that we are building as we increase our internal capacity to execute this vision
and direction.
On the governance side, we have brought additional real-world experience in growing and scaling mining
companies to our Board in this and the prior reporting period with the additions of Scott Perry, Ross
Bhappu and me.
In the executive suite, we have also added terrific talent with deep execution experience.
▪
Colin Mackey has brought operational leadership and mine building experience that has accelerated all
of our planning work around the reactivation of the Nifty copper complex.
▪
Louis Chait has brought deep finance and commercial experience and know-how to the team that has
been essential as we have started building our commercial readiness for operations.
▪
Our broader executive team has leaned into the many tasks at hand to produce high quality results for
our shareholders by mastering the many smaller details that make up the pieces of a larger operation.
We are also building our external commercial framework with a close group of stakeholders who will be
with us as we execute on our vision. Most importantly, following the period, you have seen us develop an
important commercial strategic partnership with Glencore. With this, we have aligned our future successes
with a strong commercial partner, and also gained access to Glencore’s domestic copper processing
infrastructure at Mt Isa and Townsville. This enables our vision of an integrated, value-added Australian
copper producer that can deliver a secure supply of copper of the finest provenance to meet the world’s
growing requirements.
Finally, post this Reporting Period, on the back of many smaller wins, we have been able to refinance our
looming balance sheet maturities. This has been a whole-of-company exercise, and there are many hands
in these successes. I am pleased that together we have renewed the mandate to build out Cyprium’s
future.
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In closing, the future is racing towards us, and I can see that the many accomplishments across this
Reporting Period keep us on track to build Australia’s next great copper company.
Thank you for your continued trust.
Sincerely,
Matthew (Matt) Fifield | Executive Chairman
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STRATEGY AND REVIEW OF OPERATIONS
Review of Operations
This review of operations relates specifically to this annual report period, 1 January 2024 to 30 June 2024 and
may, where indicated, include mention of events that have happened in the time following the close of the
reporting period and the issuance of this Annual Report.
In the previous reporting period, the Company spent much of that period suspended from trading and with
an uncertain outlook. In September 2023, the Company raised capital to develop plans for the re-activation
of the Nifty copper complex.
During this Reporting Period, a number of positive technical milestones were achieved as the company’s
executive and governance functions were reviewed and changed to meet the future requirements of the
Company.
Nifty: Prolific past producer now a brownfield redevelopment opportunity
The Company’s primary focus has been on the redevelopment of the Nifty copper complex.
Nifty has had a long history of copper production, starting in the early 1990s processing oxide ores into
copper cathodes, and most recently operating an underground mine to access deep sulphide ores to process
into copper concentrates. Over the past operational history of the mine, there have been over 700,000 tonnes
of copper metal produced in either cathode or concentrate form.
The underground operations were placed onto care and maintenance in 2019 by previous owner Metals X
and were later abandoned. Cyprium acquired the Nifty copper complex as a part of the acquisition of
Paterson Copper from Metals X in 2021.
Today, Nifty is an important brownfield redevelopment opportunity. Substantial copper resources remain –
recent studies show more than one million tonnes of contained copper metal in the resources remaining
between the shallow open pit that previously produced oxide ores and the deeper orebody that previously
produced high grade sulphide ores. Next, there remains substantial fixed infrastructure in the form of the
two processing plants (a cathode plant and a concentrator), camp, utilities, and other infrastructure. Finally,
the Company controls substantial data, knowledge and has many approvals in place, each of which provide
meaningful cost and time savings over greenfield copper projects, and present clear and approachable paths
to reactivation.
The redevelopment of Nifty into a current producer is the largest opportunity within the Cyprium asset
portfolio and therefore where the majority of the Company’s resources are directed.
Building Strong Data Foundations for Future
Over the reporting period, the Company has reviewed and organised the Company’s foundational resource
data and associated technical information necessary for developing future plans.
The Company has completed a number of important works during the period and in the following months,
including:
▪
March 2024 Nifty Updated MRE: In March 2024, Cyprium released an updated Mineral Resource Estimate
for Nifty, outlining one million tonnes of contained copper in the transitional and sulphide ores remaining
in the Nifty orebody. This updated mineral resource estimate included additional resource drilling
conducted by the Company as well as detailed mapping and domaining information using historical
records.
▪
August 2024 Nifty Heap Leach MRE: Cyprium also released a mineral resource estimate on copper
remaining in the materials currently stockpiled on heap leach pads, indicating 54,000 tonnes of contained
metal. This was the first updated mineral resource statement on this material published since 2015, and
incorporated new information from previous sonic drilling campaigns.
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▪
PFS-level Geotechnical Information: The Company also upgraded its understanding of the geotechnical
factors that would influence the development of a new surface mine at Nifty through drilling and
subsequent geotechnical information. This geotechnical information is ultimately being developed in
support of a pre-feasibility study.
Scoping Study Frames High Level Opportunity of Surface Mine
As stated previously, the largest commercial opportunity for the Company is to redevelop the Nifty site to
produce copper concentrate from the one million tonnes of copper metal in sulphide and transitional
resources. The Company is progressing a logical plan to build a new surface mining operation to access this
ore at scale, and to process that ore through the adjacent brownfield concentrator.
The first planning step was to gauge at a high level the scale of this plan. In May 2023, Cyprium published a
scoping study to scope and validate the commercial potential of this strategy. This scoping study defined an
operation that could produce approximately 36,000 tonnes of copper in concentrate annually, with a total
life-of-mine recovery of 570,000 tonnes of metal over 17 years. The development plan envisions utilising three
600-tonne excavators to feed ore into the concentrator, with a large-scale truck and shovel operation
targeting the sulphide resources that extend down dip from previous excavations. With all the advantages of
a brownfield site, the study also revealed high level economics with a net present value (NPV8%) of $880
million and an internal rate of return (IRR) of 46%.
In parallel with the release of Scoping Study, Cyprium has continued to upgrade and refine its understanding
of the sulphide resource, advance all planning work, and assemble other project information to a point of
completeness that can support a Pre-Feasibility Study level of accuracy.
Near-term Revenue Opportunity through Retreatment of Heap Leach Materials
During the period, the Company also rapidly advanced its understanding of the opportunity to re-establish
revenues quickly through reactivating cathode operations.
Nifty’s previous heap leach operations were terminated abruptly in 2008 as its underground sulphide
operations came online, leaving unrecovered copper in the material stockpiled on the heap leach pads. The
SX-EW plant and infrastructure used to produce copper cathode is adjacent to the heap leach pads. This
plant and infrastructure has laid dormant since cathode operations were terminated.
Previous management had gone through an extensive study of a “high capital – high recovery” plan that would
recover these remaining copper resources by re-stacking and re-agglomerating existing material onto new
heap leach pads. As a part of this study, an extensive review of the condition of the plant and infrastructure
was undertaken, revealing that much of the plant and infrastructure could be refurbished and restored to
operating condition. Ultimately, this “high capital – high recovery” plan did not result in favorable economic
outcomes and did not proceed.
In this review period, management spent significant time reviewing prior study information and developing
a “low capital – low recovery” business plan. The center of this plan is to access remaining copper by simply
re-leaching stockpiled material in place and recovering the copper from the resulting leachate through the
adjacent cathode plant, once refurbished.
Significant progress has been made on this business plan. In the period, the Company assessed preliminary
capital and operating costs, and evaluated technical work associated with operations and ultimate recovery.
One visible output of this planning work was the new Heap Leach MRE published in August 2024. Work
continues to evaluate the near-term and long-term viability of a cathode restart and the interaction of this
“low capital – low recovery” plan with the developing plans for a new surface mine.
Management believes that this low-cost, low-complexity approach remains the most visible route to early
cash flow and is considered to be both low capital cost and low complexity.
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Glencore Partnership: Securing a Strong Commercial Foundation
The work on the Company’s assets was accompanied by a commercial scope of work to find offtake partners.
Post-period end, Cyprium Metals announced a Commercial Strategic Partnership with Glencore International
AG, marking a significant step forward in securing the commercial foundation for the company’s restart plans
at Nifty.
The commercial strategic partnership includes cathode offtakes for all copper products (eg. copper cathode
and copper concentrate), sulphuric acid supply and technical support.
With regards to cathode offtake, the Company has agreed to sell 100% of its cathode products to Glencore
on commercial terms for 10 years following commercial production. The terms of the cathode contract
ensures acceptance of off-spec cathode materials at Glencore’s refinery in Townsville, Queensland, providing
certainty of revenue during the crucial startup phase.
Glencore will also be Cyprium’s offtake partner for any copper concentrate from the new surface mine at
Nifty. One important feature of this contract is that Glencore will make reasonable efforts to deliver Nifty
concentrates to its Mt Isa Smelter in Queensland, creating an end-to-end Australian story that provides
resilient supply chain dynamics to copper consumers. The concentrate offtake agreements run for ten (10)
years following commercial production and are on market terms that reflect today’s favourable copper
market dynamics.
In addition to the offtake agreements, Glencore has agreed to provide Cyprium with sulphuric acid supply on
market terms, ensuring a stable supply of a critical input for copper cathode production. Glencore will also
provide additional technical support to Cyprium through Glencore Technology on request, further bolstering
the company's operational capabilities.
The Commercial Strategic Partnership with Glencore is a major milestone for Cyprium, aligning the Company’
near term copper production with one of the world’s leading commodity companies. This relationship
provides the Company with transparent pricing, access to global markets and the commercial strength that
allows the Cyprium team to focus on planning and on-the-ground execution.
Corporate Leadership
During the first half of 2024, Cyprium made several key leadership changes designed to strengthen its team
and enhance the company’s ability to execute on its strategic objectives. These changes are part of a broader
effort to position the Company for near-term copper cathode production and to lay the foundation for the
larger commercial opportunity associated with the development of a surface mine at Nifty.
In February 2024, Matt Fifield, a major shareholder and highly experienced leader with a deep background in
the mining sector, was appointed Executive Chair. Fifield has brought a strategic focus and an emphasis on
execution to Cyprium’s leadership, guiding the company as it progresses toward restarting operations at
Nifty. With a career that spans leadership roles in global mining companies and experience in managing
complex projects, Fifield has been instrumental in driving Cyprium’s operational and commercial strategies
forward.
Under Fifield’s leadership, Cyprium made two key executive appointments in June 2024. Louis Chait was
appointed as Chief Commercial Officer. Chait brings significant experience from his previous role as Chief
Financial Officer for Copper at Glencore, where he coordinated commercial activities across a global portfolio,
including sales and marketing. Chait’s deep copper-focused background will be pivotal in building Cyprium's
commercial and marketing capabilities, particularly as the company prepares for the restart of production at
Nifty. His experience with financing and beneficial financial outcomes will also support Cyprium as it seeks to
optimize its commercial execution.
At the same time, Colin Mackey joined Cyprium as Chief Operating Officer. Mackey previously served as
Managing Director of Jadar and European Operations for Rio Tinto. Over his 18-year career with Rio Tinto,
Mackey led the construction, development, and operational improvement of multiple mining operations. At
Cyprium, he is leading the operational execution of the Company’s restart plans at Nifty, ensuring that strong
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culture, solid planning, and clear communication underpin the company’s efforts. Mackey’s experience and
energy are expected to play a key role as Cyprium transitions from planning to production.
These leadership changes significantly enhance Cyprium’s ability to scale its operations and deliver value
across multiple fronts. With experienced leaders in key positions, the Company is better positioned to drive
project delivery and increase its capacity to execute on its strategic goals.
In addition to these appointments, Cyprium announced that Milan Jerkovic, who had previously served as
Chief Operating Officer, would transition to the role of Senior Advisor. In this capacity, Jerkovic will focus on
delivering a strategy for Cyprium’s next generation of projects, including the Maroochydore and Murchison
tenements.
These leadership changes are a critical element of Cyprium’s strategic focus on executing its business plan
and creating long-term value for shareholders.
Enhanced Governance
In April 2024, the Board elected Scott Perry as a new member. Scott was previously the CEO of Centerra Gold
and before that held multiple executive roles within large gold companies. Scott brings financial acumen,
corporate leadership and experience in high growth companies to the board, having led Centerra’s executive
suite as it grew from a single asset producer into a multi-asset global midcap company.
Exploration Properties
Cyprium has continued to advance its exploration activities across its broader portfolio, particularly in the
Paterson and Murchison Provinces of Western Australia.
In early 2024, Cyprium made a high-grade copper discovery at the Heeler Prospect, located approximately 10
kilometres southwest of the Company’s Hollandaire copper-gold deposit within the Murchison Province.
The initial drill results from Heeler included a standout intercept of 15 metres at 3.26% Cu, 0.70 g/t Au, and
7.4 g/t Ag, including 7 metres at 5.04% Cu, 0.81 g/t Au, and 11.4 g/t Ag. This discovery highlights the untapped
potential of the Company’s exploration assets.
This discovery suggests that Heeler may be a valuable addition to Cyprium’s copper-gold resource inventory
in the Murchison Province which already includes 203,000 tonnes of copper and 153,000 ounces of gold
across the Hollandaire and Nanadie Well deposits.
In addition to the work at Heeler, Cyprium continues to advance its other exploration assets. In particular, the
team has focused on Maroochydore which represents a key component of Cyprium’s long-term multi-asset
strategy.
Financial Position
Financially, as of June 30, 2024, the company held $7.3 million in cash and had $12.5 million in total liquidity.
Cyprium remains actively engaged in discussions with multiple financing partners to address near-term
debt maturities and secure the capital needed to fund its forward development plans.
Post period end, Cyprium announced an amendment to the terms of its unsecured convertible notes with
Metals X Limited, which extended the redemption date by three years to December 2028. This amendment
provides the company with greater financial flexibility as it continues to advance the phased redevelopment
of Nifty.
Post period end, the Company announced binding term sheet for a $40 million senior secured loan facility
with Glencore. This senior secured facility would replace the Company’s existing senior loan, provide
additional working capital, and extend maturities out to fourth quarter 2028.
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Outlook
Cyprium entered the period with looming maturities and challenges in its ability to make forward progress
following a substantial period of time in distress. Through the period and in the following months, new
management has delivered substantial technical work to underpin future growth initiatives, refinanced
looming financial maturities, and entered into important new commercial partnerships.
Over the next financial year, the Company’s principal goals are to deliver feasibility studies on the
reactivation of Nifty concentrate production and look to execute on near-term revenue opportunities.
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DIRECTORS’ REPORT
The Directors present their report for Cyprium Metals Limited (Cyprium, CYM or the Company) and its
subsidiaries (the Group) for the year ended 30 June 2024.
All amounts are expressed in Australian dollars unless otherwise stated.
DIRECTORS
The following persons were directors of Cyprium during the year and up to the date of this report:
DIRECTOR
ROLE
CHANGES IN TENURE
CURRENT DIRECTORS
M Fifield
Executive Chairman
Non-Executive Chairman
Appointed 16 February 2024
Appointed 13 September 2023
G Comb
Non-Executive Director
Transitioned from Non-Executive Chairman to
Non-Executive Director on 13 September 2023
R Bhappu
Non-Executive Director
Appointed 15 November 2023
S Perry
Non-Executive Director
Appointed 18 April 2024
FORMER DIRECTORS
C Donner
Managing Director
Appointed 13 September 2023
Resigned 16 February 2024
Directors have been in office since the start of the financial year to the date of this Annual Report unless
otherwise stated.
DIRECTORS’ INFORMATION
Matthew (Matt) Fifield | Executive Chairman
Mr Fifield has a Master of Business Administration and a Graduate Diploma in Geology. Mr Fifield is the
Managing Director of Pacific Road Capital, a leading resource investment firm that has managed over $1
billion in funds raised to develop and enhance resource companies around the world. Mr Fifield has
participated in more than $10 billion of capital raising and M&A transactions across his career and is a
leading voice on responsible resource investing. He is a frequent speaker and contributor around issues of
sustainable development practices.
Gary Comb | Non-Executive Director
Mr Comb is a mechanical engineer with more than 30 years’ experience in the Australian mining industry,
with a strong track record in successfully commissioning and operating base metal mines. He was Chairman
of Finders Resources Limited from 2013 until its takeover in 2018. Mr Comb was previously the Managing
Director of Jabiru Metals Limited and the CEO of BGC Contracting Pty Ltd.
Ross Bhappu | Non-Executive Director
Mr Bhappu has a Ph.D in Mineral Economics and Masters in Metallurgy. Mr Bhappu has been with Resource
Capital Funds (RCF) since 2001 having served in numerous investment roles including Head of the Private
Equity Funds and he currently serves as Senior Strategic Advisory Partner. Mr Bhappu has co-led the raising
of six private equity funds totalling approximately US$4.5 billion. He has managed an extensive portfolio of
mining projects across dozens of commodities and geographies. Over his 35-year career in mining, he has
served in both technical and financial roles and has previously served on seven public and six private
company boards.
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Scott Perry | Non-Executive Director
Mr Perry is a seasoned leader with over 25 years in the mining sector. He brings extensive experience from
his role as President & CEO of Centerra Gold Incorporated, where he elevated the company into a C$3
billion entity with operations across Canada, Kyrgyzstan, and Turkey. His prior roles include President and
CEO of AuRico Gold and multiple CFO positions, highlighting his strong operating and governance expertise.
Mr Perry served as a Board member and Chair of the Audit Committee of the World Gold Council from 2015-
2021.
DIRECTORSHIPS OF OTHER LISTED COMPANIES
Directorships of other listed companies held by current directors in the three years immediately before the
end of the financial year are as follows:
Director
Company
Period of Directorship
M Fifield
N/A
N/A
R Bhappu
N/A
N/A
G Comb
Boab Metals Limited
Director from March 2020
S Perry
Toubani Resources Limited
Director from May 2023
COMPANY SECRETARY
David Hwang
Mr Hwang is a corporate lawyer, company secretary and advisor to boards and management of pre-IPO and
ASX listed entities. He regularly advises emerging and listed entities across a range of compliance, legal,
governance and strategic matters. Mr Hwang is the Managing Director of Confidant Partners, which provides
ASX compliance, company secretarial and board advisory services. Prior to this, Mr Hwang was a senior
executive at a leading integrated technology solutions and professional services provider, where he led
Australia’s largest outsourced company secretarial and legal team.
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of Cyprium Metals Limited are:
Director
Ordinary Shares
Options and Performance Rights
M Fifield
109,979,535
103,216,636 options
R Bhappu
7,500,000
3,750,000 options
G Comb
9,702,157
4,500,000 performance rights
672,675 options
S Perry
Nil
Nil
RESULTS OF OPERATIONS
The Group’s net loss after taxation attributable to the members of Cyprium Metals Limited for the 6 months
ended 30 June 2024 was $12.6 million (31 December 2023: $19.5 million).
DIVIDENDS
No dividends were paid or declared. The directors do not recommend the payment of a dividend.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was identifying, evaluating and developing projects, and
conducting exploration activities, in the resources and mineral exploration sector as outlined in the Review
of Operations.
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CORPORATE STRUCTURE
Cyprium Metals Limited (Cyprium, CYM or the Company) is a company limited by shares, which is
incorporated and domiciled in Australia. During the year the Company issued 12,800,000 performance
rights to employees.
On 26 June 2024, the Company announced that it has changed its financial year from 1 January – 31
December to 1 July – 30 June in accordance with section 323D(2A) of the Corporations Act 2001.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 26 July 2024, Cyprium announced a commercial strategic partnership with Glencore. Further to this
announcement, on 30 August 2024, Cyprium announced a AUD$40m senior secured loan facility with
Glencore.
On 19 August 2024, the Company announced the 2024 Mineral Resource Estimate (MRE) for the existing
above-surface material stacked on the heap leach pads at the Nifty Copper Mine (Nifty). Highlights included
indicated and inferred MRE of 12.7 million tonnes grading 0.43% Cu for contained copper of 54,050 tonnes.
On 22 August 2024, the Company announced that agreed with Metals X Limited (Metals X) to amend the
terms of its unsecured convertible notes. It was noted that the parties had entered into a binding term sheet
under which the redemption date had been extended to 3 years to the quarter ending December 2028, $5
million amendment fee was payable in two instalments of $2.5 million, the annual interest rate had been
adjusted to 6% per year, the conversion price had been amended to a 25% premium to the share price at
which Cyprium next raises equity capital, the convertible notes can be redeemed early at Cyprium’s option
through payment of 115% of face value, Metals X will be issued with 40.6 million options (2-year expiry and
exercise price equal to the conversion price) and that Cyprium shareholder approval would be required for
the issue of options and amendments of convertible notes (which would be sought at the next meeting of
shareholders).
On 30 September 2024, the Company announced that it had executed its long form documentation with
Glencore which resulted in the Company completing a drawdown of US$27.3 million from the facility with
Glencore. This new facility has refinanced the existing senior secured Debt facility Nebari Resources Credit
Fund II LP U$15.37 million.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue identifying, evaluating and developing projects, together with conducting
exploration activities, in the Australian resources and mineral exploration sector.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The operations of the Group are subject to environmental regulation under the laws of Australia. The Group
is, to the best of its knowledge, at all times in full environmental compliance with the conditions of its
licences.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
In accordance with the Constitution of the Company, to the extent permitted by law, the Company
indemnifies every director, officer and employee of the Company and each officer of a related body
Corporate of the Company against any liability incurred by that person:
a)
in his or her capacity as a director, officer, or employee of the Company; and
b)
to a person other than the Company or a related body corporate of the Company.
During the financial year, Cyprium Metals Limited paid an insurance premium in respect of a policy for the
benefit of the Directors of the Company, Company Secretary, executive officers and employees of the
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Company and any subsidiary bodies corporate as defined in the insurance policy, against a liability incurred
as such a director, company secretary, executive officer or employee to the extent permitted by the
Corporations Act 2001. In accordance with commercial practice, the insurance policy prohibits disclosure of
the terms of the policy including the nature of the liability insured against and the amount of the premium.
INDEMNIFICATION OF THE AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a liability incurred by the auditor. During the financial
year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
OPTIONS AND WARRANTS
As at the date of this report, there are 423,860,979 outstanding options and 80,328,290 outstanding warrants.
PERFORMANCE RIGHTS
During the reporting period the Company issued 12,800,000 performance rights to employees ( on 6 June
2024).
During the reporting period, no performance rights vested (or were exercised), and 53,413,600 million
performance rights lapsed. After the reporting period and as of date of this report, 1,250,000 vested
performance rights were exercised into shares and 1,250,000 performance rights lapsed.
As at the date of this report, there were 78,592,228 performance rights on issue, expiring in June and July
2026, August 2027, September 2028, December 2028, and May 2029. The details of the performance
conditions relating to the performance rights are as follows:
Performance Conditions
Number
Commence mining of the Nifty Copper open pit
6,250,000
Commissioning of the SX-EW processing plant at Nifty; or
a minimum $0.40 per Share 20-day VWAP
6,250,000
Copper production exceeding 25,000 tonnes of contained copper metal after
commencement of mining of the Nifty Copper mine; or
a minimum $0.475 per Share 20-day VWAP
6,250,000
Cyprium’s quarterly production of at least 50,000 tonnes per annum copper
equivalent; or
a minimum $0.50 per Share 20-day VWAP
6,250,000
Total expiring in June and July 2026
25,000,000
Performance Conditions
Number
Commence mining of the Nifty Copper open pit
250,000
Commissioning of the SX-EW processing plant at Nifty; or
a minimum $0.40 per Share 20-day VWAP
250,000
Expand Cyprium’s copper equivalent resource inventory to 2.0mt contained copper
metal; or a minimum $0.45 per Share 20-day VWAP
250,000
Copper production exceeding 25,000 tonnes of contained copper metal after
commencement of mining of the Nifty Copper mine; or
a minimum $0.475 per Share 20-day VWAP
250,000
Cyprium’s quarterly production of at least 50,000 tonnes per annum copper
equivalent; or a minimum $0.50 per Share 20-day VWAP
250,000
Total expiring in August 2027
1,250,000
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Performance Conditions
Number
Production of 10,000 tonnes of copper at the Nifty Project
2,842,560
Announcement of mineral reserves of 400,000 tonnes contained copper
5,685,120
Announcement of mineral reserves of 2.0mt contained copper equivalent metal
5,685,120
Total expiring in September 2028
14,212,800
Performance Conditions
Number
Achievement of a final integrated life of mine (LOM) business plan for the
redevelopment of the Nifty Copper Project, based on the development of an open pit
mine, approved by the Board
800,000
Financial close of debt and equity capital sufficient to fund the initial development of
the LOM business plan for the Nifty Copper Project (as determined by the LOM business
plan)
2,460,000
First copper production as per the Board approved integrated LOM business plan at
the Nifty Copper Project
1,640,000
Quarterly copper production at the Nifty Copper Project an annualised rate exceeding
20,000 tonnes p.a.
2,050,000
Publish a Sustainability Report
1,250,000
Total expiring in December 2028
8,200,000
Note: In addition to the performance conditions, 1/3rd of the total allocation will vest each year based on
continuous service over a period of three (3) years from the commencement date.
Performance Conditions
Number
Continuous service to the Company for a period of 12 months from the date of issue
6,109,809
Continuous service to the Company for a period of 24 months from the date of issue
6,109,809
Continuous service to the Company for a period of 36 months from the date of issue
6,109,810
Total expiring in December 2028
18,329,428
Performance Conditions
Number
Board approval of the FID with respect to the SX restart project;
or a minimum $0.7 per Share 30-day VWAP
10,000,000
1,000 tonnes of copper plated and sold;
or a minimum $0.11 per Share 30-day VWAP
2,800,000
Total expiring in May 2029
12,800,000
DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of Directors) held during the year
and the number of meetings attended by each Director were as follows:
Directors’ Meetings
Audit and Risk
Committee Meetings
Remuneration
Committee Meetings
Eligible
to attend
Attended
Eligible
to attend
Attended
Eligible
to attend
Attended
M Fifield
14
14
1
1
3
3
G Comb
15
14
2
2
4
4
R Bhappu
11
11
1
1
4
3
S Perry
4
4
-
-
1
1
C Donner
7
7
-
-
-
-
15
As at the date of this report, the Company had an Audit and Risk Committee of the Board of Directors. The
Audit and Risk Committee is comprised of Non-Executive Directors and Scott Perry is the Chairman of the
Audit and Risk Committee.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of the 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 those proceedings. The Company was not a party to any such proceedings
during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors
of Cyprium Metals Limited support and adhere to the principles of sound corporate governance. The Board
recognises the recommendations of the Australian Securities Exchange Corporate Governance Council and
considers that Cyprium Metals Limited complies to the extent possible with those guidelines, which are of
importance and add value to the commercial operation of an ASX listed resources company. The Company
has established a set of corporate governance policies and procedures, and these can be found on the
Company’s website: cypriummetals.com.
The Corporate Governance Statement which will be approved at the same time as the Annual Report can be
found at https://cypriummetals.com/about-us/corporate-governance/
The Board notes that the Corporate Governance Statement (link above) reflects the Company’s compliance
with the recommendations of the Australian Securities Exchange Corporate Governance Council for FY24.
The Board notes that during the reporting period, the Company underwent significant Board and
management changes. As part of these changes, the current Board continues to review its Corporate
Governance Framework to ensure that it is fit for purpose moving forward and adheres to the highest
standards of governance.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Company’s auditors to provide the Directors of
Cyprium Metals Limited with an Independence Declaration in relation to the audit of the financial report. A
copy of that declaration is included within the annual report, and forms part of this directors’ report.
During the year the Company’s auditors did not perform any other services in addition to their statutory
audit duties. The Board considers any non-audit services provided by the auditor and satisfies itself that the
provision of those non-audit services is compatible with, and do not compromise, the auditor independence
requirements of the Corporations Act 2001 for the following reasons:
▪
all non-audit services are subject to the corporate governance procedures adopted by the Company and
are reviewed to ensure they do not impact upon the impartiality and objectivity of the auditor.
▪
the non-audit services do not undermine the general principles relating to auditor independence as set
out in APES 110 code of Ethics for Professional Accountants, as they do not involve reviewing or auditing
the auditor’s own work, acting in a management or decision-making capacity for the Company, acting as
an advocate for the Company or jointly sharing risks and rewards. Details of the amounts paid to the
auditors of the Company, and its related practices for audit and non-audit services provided during the
year are set out in note 22 to the financial statements.
16
AUDITED REMUNERATION REPORT
This report, which forms part of the Directors’ report, outlines the remuneration arrangements in place for
the key management personnel of Cyprium Metals Limited for the 6 month period ended 30 June 2024. The
information provided in this remuneration report has been audited as required by Section 308(3C) of the
Corporations Act 2001.
The remuneration report details the remuneration arrangements for Key Management Personnel (‘KMP’)
who are defined as those persons having authority and responsibility for planning, directing and controlling
the major activities of the Group, directly or indirectly, including any Director (whether executive or
otherwise) of the Group.
Details of KMP
▪ Mr Matthew Fifield (appointed 13 September 2023)
▪ Mr Gary Comb (appointed 14 June 2019)
▪ Mr Ross Bhappu (appointed 15 November 2023)
▪ Mr Clive Donner (appointed 13 September 2023, resigned 16 February 2024)
▪ Mr Scott Perry (appointed 18 April 2024)
Remuneration Policy
The remuneration policy of Cyprium Metals Limited has been designed by the Board taking into
consideration the stage of development of the Group and the activities undertaken. The Board of Cyprium
Metals Limited believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best executives and directors to run and manage the Group.
The remuneration policy aims to attract, retain and motivate the high-performing individuals that will deliver
the business strategy and create long-term value. Performance-related pay to incentivise high performance
and rewards are to be linked to and commensurate with performance. As a result, performance-related pay
represents a meaningful portion of total remuneration for all KMP and employees that have the ability to
influence shareholder value. Shareholder value is created by project acquisition, analysis, expansion,
financing, development and operations.
During the pre-decision to construct mine phase, KMP and employees are incentivised to deliver the
business strategy and to acquire and grow the Company’s project base.
Fixed remuneration
Fixed remuneration consists of total Directors’ fees, salaries, bonus, consulting fees and employer
contributions to superannuation funds, excluding performance pay (cash, shares and options). Fixed
remuneration levels are reviewed annually by the Board.
Executive remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework has the following components:
▪ Base salary (which is based on factors such as length of service, performance and experience) and, where
applicable, employer contributions to superannuation;
▪ Consulting fees for executives providing services under a services contract; and
▪ Long-term incentives through participation in the Performance Rights Plan of Cyprium Metals Limited
and as approved by the Board.
17
Non-Executive Directors’ remuneration
The Board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. The board determines payments to the non-executive directors and
reviews their remuneration annually, based on market practice, duties and accountability.
Fees for non-executive directors are not linked to the performance of the Group. However, to align Directors’
interests with shareholder interests, directors may receive long-term performance incentives via the
Performance Rights Plan of Cyprium Metals Limited.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval
by shareholders at the Annual General Meeting and is currently $450,000.
The annual remuneration for each non-executive director was set of $60,000 per annum during 2023. These
fees have been determined by the Board of the Company, taking into consideration factors such as the
market rates of industry peer companies and the current level of activity.
Where there is a significant change in the size and scale of Company activities these annual fees will be
reviewed. Where approved and at the request of the Board, any of the Non-Executive Directors may from
time to time be required to fulfil certain executive functions.
Use of remuneration consultants
The Board may (from time to time) engage the services of external consultants to advise on the
remuneration policy and to benchmark director and key management personnel remuneration against
comparable entities, so as to ensure that remuneration packages are consistent with the market and
appropriate for the organisation. The Group did not employed the services of remuneration consultants
during the year.
Employee Securities Incentive Plan
The Employee Securities Incentive Plan of Cyprium Metals Limited was last approved by Shareholders at the
2022 Annual General Meeting.
Directors, full and part time employees and contractors of Cyprium Metals Limited are eligible to participate
in the Employee Securities Incentive Plan. Any issue of Employee Securities Incentives to Directors is subject
to Shareholder approval pursuant to the provisions of the ASX Listing Rules and the Corporations Act 2001.
The Directors consider that the Cyprium Metals Limited Employee Securities Incentive Plan represents an
appropriate method to:
▪ Reward Directors, KMP and employees for their performance;
▪ Provide long-term incentives for participation in the Company’s future growth;
▪ Motivate and retain Directors, KMP and employees;
▪ Establish a sense of ownership in the Company for Directors and employees;
▪ Enhance the relationship between the Company and its employees for the long-term mutual benefit of
all parties; and
▪ Enable the Company to attract high calibre individuals who can bring specific expertise to the Company.
Voting on the Remuneration Report – 2023 Annual General Meeting
The Company received approximately 99.62% of ‘yes’ votes on its Remuneration Report for the year ended
30 June 2024.
Loans to Directors and Executives
There were no loans to Directors and KMP during the financial year ended 30 June 2024.
18
Details of Remuneration
Details of the nature and amount of each element of the remuneration of each Director of the Company for
the year ended 30 June 2024 are as follows:
Salary or
Consulting
Fees
$
Share
Based
Payments1
$
Termination
Benefits
$
Other
Benefits2
$
Total
$
Performance
Related
%
M Fifield(a)
190,667
-
-
-
190,667
0%
G Comb(b)
30,000
-
-
3,300
33,300
0%
R Bhappu(c)
30,000
-
-
-
30,000
0%
S Perry(d)
12,097
-
-
1,331
13,428
0%
C Donner(e)
62,499
408,777
581,307
58,850
1,111,433
37%
325,263
408,777
581,307
63,481
1,378,827
30%
(a)
Non-Executive Chairman until on 16 February 2024. Since then, served as Executive Chairman.
(b)
Non-Executive Chairman until 13 September 2023. Since then, served as Non-Executive Director.
(c)
Appointed as Non-Executive Director on 15 November 2023.
(d)
Appointed as Non-Executive Director on 18 April 2024.
(e)
Appointed as Managing Director on 13 September 2023. Resigned on 16 February 2024.
Details of the nature and amount of each element of the remuneration of each Director of the Company for
the year ended 31 December 2023 are as follows:
Salary or
Consulting
Fees
$
Share
Based
Payments1
$
Termination
Benefits
$
Other
Benefits2
$
Total
$
Performance
Related
%
M Fifield(a)
18,000
-
-
-
18,000
0%
G Comb(b)
81,000
-
-
8,610
89,610
0%
R Bhappu(c)
7,500
-
-
-
7,500
0%
C Donner(d)
135,000
159,735
-
12,375
307,110
52%
J Featherby(e)
35,726
-
-
3,814
39,540
0%
B Cahill(f)
302,683
-
804,742
88,219
1,195,644
0%
N Rowley(g)
16,833
-
-
-
16,833
0%
596,742
159,735
804,742
113,018
1,674,237
10%
(a)
Non-Executive Chairman until on 16 February 2024. Since then, served as Executive Chairman.
(b)
Non-Executive Chairman until 13 September 2023. Since then, served as Non-Executive Director.
(c)
Appointed as Non-Executive Director on 15 November 2023.
(d)
Appointed as Managing Director on 13 September 2023. Resigned on 16 February 2024.
(e)
Appointed as Non-Executive Director on 12 April 2023. Resigned on 15 November 2023.
(f)
Resigned as Managing Director on 13 September 2023.
(g)
Resigned as Non-Executive Director on 12 April 2023.
1 These values relate to non-cash performance rights issued during 2019, 2020, 2021, 2022 and 2023 years and have been derived using valuation techniques and
inputs as set out in Note 17. The 2022 charge includes adjustments from previous years due to the acceleration of actual and forecast vesting conditions.
2 Other benefit payments related to statutory superannuation.
19
Shareholdings of Directors
The number of shares in the Company held during the year by Directors of the Company, either directly or
indirectly, is set out below. There were no shares granted during the reporting year as compensation.
2024
Opening
Balance
Balance on
appointment
Addition/
Purchase
Disposal
Balance on
Resignation
Closing
Balance
M Fifield
109,979,535
-
-
-
-
109,979,535
G Comb
9,202,152
-
-
-
-
9,202,152
R Bhappu
7,500,000
-
-
-
-
7,500,000
S Perry
-
-
-
-
-
-
C Donner
12,500,000
-
-
-
(12,5000,000)
-
Option holdings of Directors
The number of options in the Company held during the year by Directors of the Company, either directly or
indirectly, is set out below.
2024
Opening
Balance
Balance on
appointment
Addition/
Purchase
Disposal
Balance on
Resignation
Closing
Balance
M Fifield
103,216,636
-
-
-
-
103,216,636
G Comb
672,675
-
-
-
-
672,675
R Bhappu
3,750,000
-
-
-
3,750,000
S Perry
-
-
-
-
-
-
C Donner
6,250,000
-
-
-
(6,250,000)
-
All equity transactions with Directors have been entered into under terms and conditions no more
favourable than those the Company would have adopted if dealing at arm’s length.
Performance Rights of Directors
The were no performance rights in the Company issued during the reporting period to Directors of the
Company.
Outstanding as at 30 June 2024:
VESTING CONDITIONS
2023
2B
3A
3B
TOTAL
C Donner
2,842,560
5,685,120
5,685,120
14,212,800
Vesting conditions
2B. Production of 10,000 tonnes of copper at the Nifty Copper Project
3A. Announcement of mineral reserves of 400,000 tonnes contained copper metal
3B. Announcement of mineral resources of 2.0mt contained copper equivalent metal
Outstanding as at 30 June 2024:
VESTING CONDITIONS
2021
1
2
3
4
5
TOTAL
G Comb
1,000,000
1,000,000
-
1,000,000
1,000,000
4,000,000
Vesting conditions
1.
Commence mining of the Nifty Copper open-pit.
2.
Commissioning of the SX-EW processing plant at Nifty; or a minimum $0.40 cent per Share 20-day VWAP.
3.
Expand Cyprium’s copper equivalent resource inventory to 1.5mt contained copper metal; or a minimum
$0.45 cent per Share 20-day VWAP.
4.
Copper production exceeding 25,000 tonnes of contained copper metal after commencement of mining
of the Nifty Copper mine; or a minimum $0.475 cent per Share 20-day VWAP.
5.
Cyprium’s quarterly production of at least 50,000 tonnes per annum copper equivalent; or a minimum
$0.50 cent per Share 20-day VWAP.
20
VESTING CONDITIONS
2019
1
2
3
4
TOTAL
G Comb
-
-
500,000
500,000
1,000,000
Vesting conditions
1.
Completion of a transaction to acquire or earn into majority ownership interests in projects
2.
Release of a Copper mineral resource of at least 80,000 tonnes
3.
Announcement of a Scoping Study or the average share price of $0.35 per share for 5 consecutive days
4.
Board resolves to proceed with a Feasibility Study or the average share price of $0.40 per share for 5
consecutive days
Options Affecting Remuneration
There were no options affecting remuneration in the current reporting year.
Other transactions with key management personnel
There were no other transactions with key management personnel during the 6-month period ended 30 June
2024 (31 December 2023: $nil).
Additional Information
The factors that are considered to affect total shareholders’ return are summarised below:
2024
2023
2022
2021
2020
Loss attributable to owners of the company
($’000)
(12,588)
(19,568)
(27,474)
(26,672)
(997)
Share price at financial year end ($)
0.045
0.028
0.105
0.165
0.205
Total shareholders’ return is not used to determine the nature and amount of remuneration as the Board
does not consider that this indicator is particularly relevant in the junior resource sector which is generally
speculative in nature and where exploration success cannot be assured.
While the Group’s main activities relate to exploration and development projects so the nature and amount
of remuneration cannot be related to traditional financial measures or to share price performance and
shareholder value. If the Group does in due course have exploration success and proves up an economic
resource and ultimately develops an economically viable mining project, then it is likely that some
component of the remuneration of key management personnel would relate to financial performance
measures that would be expected to enhance share performance and shareholder wealth.
END OF AUDITED REMUNERATION REPORT
This report is signed accordance with a resolution of the Board of Directors made pursuant to section 306(3)
of the Corporations Act 2001.
ROUNDING
The amounts contained in this report have been rounded to the nearest ‘000 (unless otherwise stated) under
the option available to the Company under ASIC Corporations Instrument 2016/91. The company is an entity
to which the legislative instrument applies.
Matthew (Matt) Fifield | Executive Chairman
Perth, WA
30 September 2024
21
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2024
6 months
ended 30
June 2024
12 months
ended 31
December 2023
Note
$’000
$’000
Continuing Operations
Interest income
436
374
Other income
164
1,822
Employee expenses
(3,198)
(5,438)
Management and administrative expenses
(5,495)
(10,280)
Share-based payments – performance rights
(1,042)
(553)
Depreciation and amortisation
(674)
(1,522)
Interest and finance charges
(1,017)
(1,486)
Amortisation – arrangement fees
(906)
(2,538)
(Loss)/Interest expense on lease liabilities
(42)
(168)
Gain on foreign exchange
(814)
221
Loss before income tax
(12,588)
(19,568)
Income tax benefit
3
-
-
Net loss for the year from continuing operations
(12,588)
(19,568)
Other comprehensive income
-
-
Total comprehensive loss for the year
(12,588)
(19,568)
Loss per share
Basic loss per share (cents per share)
23
(0.83)
(2.01)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
22
Consolidated Statement of Financial Position
as at 30 June 2024
30-Jun-2024
31-Dec-2023
Note
$’000
$’000
Current Assets
Cash and cash equivalents
4
7,325
22,591
Receivables
5
306
100
Inventories
6
6,467
6,442
Other assets
7
1,041
974
Total Current Assets
15,139
30,107
Non-Current Assets
Right-of-use asset
8
768
963
Property plant and equipment
9
115,444
111,416
Deferred exploration and evaluation expenditure
10
34,632
33,364
Other non-current financial assets
11
7,079
7,079
Total Non-Current Assets
157,923
152,822
Total Assets
173,062
182,929
Current Liabilities
Trade and other payables
12
5,952
4,363
Lease liabilities
13
418
465
Borrowings
14
16,016
14,296
Convertible notes
15
34,431
-
Total Current Liabilities
56,817
19,124
Non-Current Liabilities
Lease liabilities
13
1,005
1,200
Convertible notes
15
-
33,935
Provisions
16
34,461
36,345
Total Non-Current Liabilities
35,466
71,480
Total Liabilities
92,283
90,604
Net Assets
80,779
92,325
Equity
Issued capital
17
301,009
301,009
Reserves
18
7,727
6,685
Convertible borrowings - equity component
19
8,748
8,748
Accumulated losses
(236,705)
(224,117)
Total Equity
80,779
92,325
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
23
Consolidated Statement of Changes in Equity
for the year ended 30 June 2024
Issued
capital
Accumulated
losses
Convertible
borrowings-
equity
component
Reserves
Total
$’000
$’000
$’000
$’000
$’000
Balance at 1 January 2023
271,685
(206,139)
8,748
6,086
80,380
Loss for the year
-
(19,568)
-
-
(19,568)
Total comprehensive loss for
the year
-
(19,568)
-
-
(19,568)
Transactions with owners in
their capacity as owners
Shares issued
31,780
-
-
-
31,780
Options issued
-
-
-
185
185
Warrants issued
-
-
-
1,206
1,206
Share based payments
-
-
-
798
798
Transfer from reserves
-
1,590
-
(1,590)
-
Cost of Issues
(2,456)
-
-
-
(2,456)
Balance at 31 December 2023
301,009
(224,117)
8,748
6,685
92,325
Balance at 1 January 2024
301,009
(224,117)
8,748
6,685
92,325
Loss for the year
-
(12,588)
-
-
(12,588)
Total comprehensive loss for
the year
-
(12,588)
-
-
(12,588)
Transactions with owners in
their capacity as owners
Share based payments
-
-
-
1,042
1,042
Balance at 30 June 2024
301,009
(236,705)
8,748
7,727
80,779
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
24
Consolidated Statement of Cash Flows
for the six months ended 30 June 2024
6 months
ended 30
June 2024
12 months
ended 31
December 2023
Note
$’000
$’000
Cash flows from operating activities
Payments to suppliers and employees – continuing operations
(7,333)
(13,920)
Interest paid on lease liabilities
(42)
(168)
Interest paid on convertible notes
(1,440)
(1,440)
Interest on borrowing
(1,017)
(1,398)
Interest received
436
374
Proceeds from asset sales
164
1,822
Net cash (used in) operating activities
4
(9,232)
(14,730)
Cash flows from investing activities
Payment for plant and equipment
(4,474)
(3,294)
Payments for exploration expenditure
(1,284)
(1,400)
(Payments for)/refund of security deposits
-
(224)
Net cash (used in) investing activities
(5,758)
(4,918)
Cash flows from financing activities
Proceeds from issue of shares
-
31,619
Proceeds from loan
4
-
21,450
Repayment of loan
4
-
(6,859)
Payments for loan issue costs
-
(3,016)
Payments for share issue costs
-
(2,270)
Payment of lease liabilities
4
(307)
(379)
Net cash provided by/(used in) financing activities
(307)
40,545
Net increase/(decrease) in cash and cash equivalents
(15,297)
20,897
Cash and cash equivalents at the beginning of the year
22,591
1,694
Effect of exchange rate changes on cash and cash equivalents
31
-
Cash and cash equivalents at the end of the year
4
7,325
22,591
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
25
1. Corporate Information
The financial report of Cyprium Metals Limited (“Cyprium Metals” or “the Company”) and its controlled
subsidies (“the Group”) for the year ended 30 June 2024 was authorised for issue in accordance with a
resolution of the Directors on 27 September 2024.
Cyprium Metals is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange. The nature of the operations and the principal activities of the Company
are described in the Directors’ Report and Review of Operations.
2. Summary of Material Accounting Policies
(a)
Basis of Preparation
The financial statements are general purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards, and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial statements have also been
prepared on a historical cost basis. The presentation currency is Australian dollars.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 25.
(b)
Compliance Statement
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
(c)
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Cyprium Metals Limited (‘the
Company’) and its subsidiaries as at 30 June each year (‘the Group’). Subsidiaries are all those entities over
which the consolidated entity has control. The Group controls an entity when the Group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the consolidated entity. They are de-consolidated from the date that control
ceases.
The existence and effect of potential voting rights that are currently exercisable or convertible are considered
when assessing whether a Company controls another entity.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profits and losses resulting from intra-company transactions have been eliminated in full.
Unrealized losses are also eliminated unless costs cannot be recovered. Non-controlling interests in the
results and equity of subsidiaries are shown separately in the Statement of Profit or Loss and Other
Comprehensive Income and Statement of Financial Position respectively.
(d)
Changes in accounting policies and disclosures
The Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that
are relevant to the Group’s operations and effective for future reporting years. It has been determined by the
Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations
on the Group and therefore, no change will be necessary to Group accounting policies.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
26
(e)
New standards, interpretations, and amendments
Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted. The Directors have determined that there was no material impact on adoption of these
new or amended Accounting Standards and Interpretations.
(f)
Foreign Currency Translation
(i)
Functional and presentation currency
Items included in the financial statements of each of the Company’s controlled entities are measured using
the currency of the primary economic environment in which the entity operates (‘the functional currency’).
The functional and presentation currency of Cyprium Metals is Australian dollars. The functional currency of
the Indonesian subsidiary is the US Dollar.
(ii)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the Statement of Profit or Loss and Other
Comprehensive Income.
(iii)
Group entities
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
▪
assets and liabilities are translated at the closing rate at balance date.
▪
income and expenses are translated at average exchange rates (unless this is not a reasonable
approximation of the rates prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and
▪
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities
are taken to shareholders’ equity. When a foreign operation is sold or any borrowings forming part of the
net investment are repaid, a proportionate share of such exchange differences are recognised in the
Statement of Profit or Loss and Other Comprehensive Income, as part of the gain or loss on sale where
applicable.
(g)
Segment Reporting
The Group determines and presents operating segments based on the information that is internally provided
to the Board of Directors who are the Group’s chief operating decision makers. An operating segment is a
component of the Group that engages in business activities whose operating results are reviewed regularly
by the Board and for which discrete financial information is available.
The Group has been involved in exploration and development activities in Australia and has one geographical
operating segment, that its Board reviews to make decisions about resources to be allocated to the segment
and to assess its performance. Segment capital expenditure is the total cost incurred during the year to
acquire property, plant and equipment, and exploration and evaluation expenditure.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
27
Exploration and evaluation expenditure
Exploration for and evaluation of mineral resources is the search for mineral resources after the entity has
obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and
commercial viability of extracting the mineral resource. Accordingly, exploration and evaluation expenditures
are those expenditures incurred by the Group in connection with the exploration for and evaluation of
minerals resources before the technical feasibility and commercial viability of extracting mineral resources
are demonstrable.
Accounting for exploration and evaluation expenditures is assessed separately for each 'area of interest'. An
'area of interest' is an individual geological area which is considered to constitute a favourable environment
for the presence of a mineral deposit or has been proved to contain such a deposit.
Expenditure incurred on activities that precede exploration and evaluation of mineral resources, including all
expenditure incurred prior to securing legal rights to explore an area, is expensed as incurred. For each area
of interest, the expenditure is recognized as an exploration and evaluation asset when the following is
satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching, and sampling and associated activities and an allocation of
depreciation and amortisation of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognized for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development. Where an area of interest is abandoned, any expenditure carried forward in respect of that
area is written off.
(h)
Income Tax
Income tax expense or benefit for the year is the tax payable on the current year’s taxable income or loss
based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Current and deferred tax expense attributable to amounts
recognized directly in equity is also recognized directly in equity.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
28
Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or
substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of
deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is
made for certain temporary differences arising from the initial recognition of an asset or liability. No deferred
tax asset or liability is recognized in relation to these temporary differences if they arose in a transaction,
other than a business combination, that at the time of the transaction did not affect either accounting or
taxable profit or loss.
Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when deferred tax balances relate to the same taxation authority. Current tax assets
and tax liabilities are offset when the entity has a legally enforceable right to offset and intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously.
(i)
Impairment of non-financial assets other than goodwill
The Company assesses at each balance date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Company makes
an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or Group of assets and the asset’s value in use cannot be estimated
to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating
unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which
case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each balance date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years.
A reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the
reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future
years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its
remaining useful life.
(j)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction from proceeds.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
29
(k)
Property, plant, and equipment
Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and
any accumulated impairment losses. The cost of self-constructed assets includes the costs of materials, direct
labour, any other costs directly attributable to bringing the asset to a working condition for its intended use,
and the initial estimate, where relevant, of the costs of dismantling and removing items, restoring the site and
an appropriate proportion of production overheads. Purchased software that is integral to the functionality of
the related equipment is capitalised as part of that equipment.
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
value exceeds its recoverable amount.
Depreciation
Plant and equipment, motor vehicles, office equipment, and furniture are recorded at cost and are depreciated
over their estimated useful economic lives to their estimated residual values using either straight line or
diminishing value methods. Depreciation methods, useful lives and residual values are reviewed at each
financial year-end and adjusted if appropriate.
(l)
Leases
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at
or before the commencement date less any lease incentives received. Unless the Group is reasonably certain
to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-
use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments
of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate.
The variable lease payments that do not depend on an index or a rate are recognized as an expense in the
period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a
change in the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and
do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases
of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-
value assets are recognised as expenses in profit or loss as incurred.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
30
Significant judgement in determining the lease term of contracts with renewal options
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
(m)
Current and Non-Current Classification
Assets and liabilities are presented in the Statement of Financial Position based on a current and non-current
classification. An asset is classified as current when: it is either expected to be realised or intended to be sold
or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected
to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period;
or there is no unconditional right to defer the settlement of the liability for at least 12 months after the
reporting period. All other liabilities are classified as non-current.
(n)
Earnings per share
Basic earnings/loss per share is calculated as net profit/loss attributable to members, adjusted to exclude any
costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as net profit/loss attributable to members, adjusted for:
a) costs of servicing equity (other than dividends) and preference share dividends.
b) the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses, and
c) other non-discretionary changes in revenues or expenses during the year that would result from the
dilution of potential ordinary shares,
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
(o)
Share based payment transactions
(i)
Equity settled transactions:
The Company provides benefits to individuals acting as and providing services similar to employees (including
Directors) of the Company in the form of share-based payment transactions, whereby individuals render
services in exchange for shares, options, or rights over shares (‘equity settled transactions’).
The cost of equity settled transactions with employees is measured by reference to the fair value at the date
at which they are granted. The fair value is determined by using a binomial valuation model taking into
account the terms and conditions upon which the instruments were granted. The expected price volatility is
based on the historic volatility of the Company’s share price on the ASX.
In valuing equity settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Cyprium Metals (‘market conditions’). The cost of the equity
settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance conditions are fulfilled, ending on the date on which the relevant employees become fully
entitled to the award (‘vesting date’).The cumulative expense recognised for equity settled transactions at each
reporting date until vesting date reflects (i) the extent to which the vesting year has expired and (ii) the number
of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed
based on the best available information at balance date.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
31
No adjustment is made for the likelihood of the market performance conditions being met as the effect of
these conditions is included in the determination of fair value at grant date. The statement of comprehensive
income charge or credit for a year represents the movement in cumulative expense recognised at the
beginning and end of the year. No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition. Where the terms of an equity settled award are
modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an
expense is recognised for any increase in the value of the transaction as a result of the modification, as
measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is granted, the
cancelled and new award are treated as if they were a modification of the original award, as described in the
previous paragraph.
The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods
and services received unless this cannot be measured reliably, in which case the cost is measured by reference
to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected
in the computation of loss per share (see note 23).
(ii)
Cash settled transactions:
The Company may also provide benefits to employees in the form of cash-settled share-based payments,
whereby employees render services in exchange for cash, the amounts of which are determined by reference
to movements in the price of the shares of the Company. The cost of cash-settled transactions is measured
initially at fair value at the grant date using the Black-Scholes formula taking into account the terms and
conditions upon which the instruments were granted. This fair value is expensed over the year until vesting
with recognition of a corresponding liability. The liability is remeasured to fair value at each balance date up
to and including the settlement date with changes in fair value recognised in profit or loss.
(p)
Inventories
Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net
realizable value. Cost comprises direct materials, direct labour, and an appropriate proportion of variable and
fixed overhead expenditure. Costs are assigned to individual items of inventory on the basis of weighted
average costs. Costs of purchased inventory are determined after deducting rebates and discounts.
(q)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and
the redemption amount is recognised in profit or loss over the period of the borrowings using the effective
interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the
loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of
the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.
Borrowings are removed from the statement of financial position when the obligation specified in the contract
is discharged, can celled, or expired. The difference between the carrying amount of a financial liability that
has been extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognized in profit or loss as other income or finance costs.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
32
(r)
Mine Rehabilitation Provision
Closure and rehabilitation provisions are initially recognised when an environmental disturbance first occurs.
The mine site provisions are an estimate of the expected value of future cash flows required to rehabilitate
the relevant site using current restoration standards and techniques and taking into account risks and
uncertainties. Individual site provisions are discounted to their present value using discount rates aligned to
the estimated timing of cash outflows.
The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate continues
to reflect the best estimate of the obligation, and if necessary, the provision is remeasured.
Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from, the
related asset and amortised on a prospective basis accordingly over the remaining life of the operation,
generally applying the units of production method.
(t) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions are recognised in the year in which the estimate is revised if it affects
only that year, or in the year of the revision and future years if the revision affects both current and future
years.
Share-Based Payments:
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a valuation model, using
the assumptions detailed in note 17.
The Group measures the cost of cash-settled share-based payments at fair value at the grant date using a
valuation model taking into account the terms and conditions upon which the instruments were granted.
Deferred Tax
In accordance with the Group's accounting policies for deferred taxes, a deferred tax asset is recognised for
unused tax losses only if it is probable that future taxable profits will be available to utilise those losses.
Determination of future taxable profits 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. This includes estimates and judgements about
commodity prices, ore reserves, exchange rates, future capital requirements, future operational performance,
and the timing of estimated cash flows. Changes in these estimates and assumptions could impact on the
amount and probability of estimated taxable profits and accordingly the recoverability of deferred tax assets.
The Group has not recognised a net deferred tax asset for temporary differences and tax losses as at 30 June
2024 on the basis that the ability to utilise these temporary differences and tax losses cannot yet be regarded
as probable.
Deferred Exploration and Evaluation Expenditure
Deferred exploration and evaluation expenditure has been capitalised on the basis that the Group will
commence commercial production in the future, from which time the costs will be amortised in proportion to
the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads between
those that are expensed and capitalised.
In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
33
production at the mine include the level of reserves and resources, future technology changes, which could
impact the cost of mining, future legal changes, and changes in commodity prices. To the extent that
capitalised costs are determined not to be recoverable in the future, they will be written off in the year in which
this determination is made.
Convertible notes
The fair value of the liability portion of a convertible note is determined using a market interest rate for an
equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until
extinguished on conversion or maturity of the notes. The remainder of the proceeds is allocated to the
conversion option. This is recognised and included in shareholders’ equity and remains in equity with no
further remeasurement.
Mine Rehabiliattion provision
Closure and rehabilitation provisions are initially recognised when an environmental disturbance first occurs.
The mine site provisions are an estimate of the expected value of future cash flows required to rehabilitate
the relevant site using current restoration standards and techniques and taking into account risks and
uncertainties. Individual site provisions are discounted to their present value using discount rates aligned to
the estimated timing of cash outflows.
The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate continues
to reflect the best estimate of the obligation, and if necessary, the provision is remeasured.
Impairment of non-financial assets
The Group assesses impairment of non-financial assets at each reporting date by evaluating conditions
specific to the Group and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or
value-in-use calculations, which incorporate a number of key estimates and assumptions. In determining
value in use, future cash flows are based on:
▪
Estimates of ore reserves and mineral resources for which there is a high degree of confidence of
economic extraction;
▪
Estimated production and sale levels;
▪
Estimated future commodity prices;
▪
Future costs of production;
▪
Future capital expenditure; and/or
▪
Future exchange rates.
Variations to expected future cash flows, and timing thereof, could result in significant changes to the
impairment test results, which in turn could impact future financial results. Refer to note 9 for more details
on impairment assessment.
(u)
Going concern
The financial report has been prepared on a going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and settlements of liabilities in the ordinary course of business.
At balance date the Group has a closing cash balance of $7.33 million (refer to note 4).
On 26 July 2024, Cyprium announced a commercial strategic partnership with Glencore. Further to this
announcement, on 30 August 2024, Cyprium announced a $40m senior secured loan facility with Glencore.
On 22 August 2024, the Company announced that agreed with Metals X Limited (Metals X) to amend the terms
of its unsecured convertible notes. It was noted that the parties had entered into a binding term sheet under
which the redemption date had been extended to 3 years to the quarter ending December 2028, $5 million
amendment fee was payable in two instalments of $2.5 million, the annual interest rate had been adjusted to
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
34
6% per year, the conversion price had been amended to a 25% premium to the share price at which Cyprium
next raises equity capital, the convertible notes can be redeemed early at Cyprium’s option through payment
of 115% of face value, Metals X will be issued with 40.6 million options (2 year expiry and exercise price equal
to the conversion price) and that Cyprium shareholder approval would be required for the issue of options
and amendments of convertible notes (which would be sought at the next meeting of shareholders).
The Company is seeking additional funding in the coming year in order to meet its planned construction
expenditure and exploration expenditure for the next twelve months from the date of signing these financial
statements.
Should this not occur, or not occur on a sufficiently timely basis, there is a material uncertainty that may
cast significant doubt about the Group’s ability to continue as a going concern and therefore, the Group
may be unable to realise its assets and discharge its liabilities in the normal course of business.
3. Income Tax
6 months
ended
30-Jun-2024
12 months
ended
31-Dec-2023
(a) Income tax expense
Numerical reconciliation of income tax expense to prima facie tax payable:
A reconciliation between tax expense and the product of accounting loss before income tax multiplied by
the Company’s applicable tax rate is as follows:
Loss before income tax expense
(12,588)
(19,568)
Tax at the Australian rate of 25% (2023: 25%)
(3,147)
(4,892)
Share based payments
212
139
Movement in unrecognised temporary differences
3,004
4,867
Non-deductible expenses
248
246
Other deductible expenses
(360)
(360)
Income tax benefit not brought to account
43
-
Income tax benefit
-
-
(b) Recognised tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Exploration and evaluation expenditure
(8,232)
(7,884)
Property, plant and equipment
(2,877)
(2,179)
Convertible note
(392)
(516)
Other
(15)
(6)
Tax losses recognised
11,516
10,585
Net deferred tax asset/(liability)
-
-
(c) Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Accruals and other payables
125
143
Other
234
25
Share issue costs
1,112
2,090
Tax losses Cyprium Metals Limited
20,852
18,320
Net deferred tax asset not recognised
22,322
20,578
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
35
The benefit for tax losses will only be obtained if:
▪
the Company derives future assessable income in Australia of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised; and
▪
the Company continues to comply with the conditions for deductibility imposed by tax legislation in
Australia; and
▪
no changes in tax legislation in Australia adversely affect the Company in realising the benefit from the
deductions for the losses.
(d) Tax consolidation
Cyprium Metals Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated
group with effect from 1 January 2019 with Cyprium Metals Limited as the head entity of the Group.
4. Cash and Cash Equivalents
30-Jun-2024
31-Dec-2023
Cash comprises:
Cash at bank and on hand
2,325
4,591
Short term deposits
5,000
18,000
7,325
22,591
Reconciliation of operating loss after tax to net cash from operations
6 months
ended
30-Jun-2024
12 months
ended
31-Dec-23
Loss after tax
(12,588)
(19,568)
Non-cash and non-operating items
Share based payments
1,042
553
Depreciation
674
1,522
Amortisation on arrangement fee
906
2,538
Foreign exchange (gain)/loss
814
(221)
Change in assets and liabilities
(Increase) /decrease in receivables
(206)
359
(Increase)/decrease in inventories and other assets
(92)
564
Increase/(decrease) in trade and other payables
218
(477)
Net cash (used in) operating activities
(9,232)
(14,730)
Reconciliation of financial liabilities movement to net cash from financing activities
Lease Liabilities
Borrowings
Convertible Notes
Opening balance
1,665
14,296
33,935
Additions
23
-
-
Cashflows - Repayments
(307)
-
-
Arrangement fees capitalised
-
-
1,936
Interest paid
-
-
(1,440)
Amortisation of arrangement fees
42
906
-
Foreign exchange movements
-
814
-
Closing balance
1,423
16,016
34,431
The Group had non-cash additions to Property plant and equipment of $0.05 million in the first 6 months of
2024 (31 December 2023: $4.8 million) in relation to borrowings costs that directly attributable to the
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
36
construction of the asset. The Group also had non-cash additions to right-of-use assets and lease liabilities of
$0.02 million in the first 6 months of 2024 ($1.1 million in 31 December 2023).
5. Receivables – Current
30-Jun-2024
$’000
31-Dec-2023
$’000
Other receivable
306
100
306
100
6. Inventories
30-Jun-2024
$’000
31-Dec-2023
$’000
Stores and spares (at cost)
6,647
6,442
6,647
6,442
7. Other assets
30-Jun-2024
$’000
31-Dec-2023
$’000
Prepayments
1,041
974
1,041
974
8. Right-of-use asset
30-Jun-2024
$’000
31-Dec-2023
$’000
Leased premises
768
963
768
963
Movement in right-of-use asset:
Opening balance
963
236
Acquisitions
23
1098
Amortisation for the year
(218)
(371)
Closing balance
768
963
9. Property, Plant and Equipment
At cost
Land and
buildings
$’000
Mining
properties and
leases $’000
Plant and
equipment
$’000
Capital works
in progress
$’000
Total
$’000
Balance at 1-Jan-2023
1,005
83,673
14,217
6,387 105,282
Additions
-
4,839
134
2,312
7,285
Depreciation
(316)
-
(835)
-
(1,151)
Balance at 31-Dec-2023
689
88,512
13,516
8,699 111,416
Cost
1,673
88,512
16,457
8,699 115,341
Accumulated depreciation
(984)
-
(2,941)
-
(3,925)
Balance at 31-Dec-2023
689
88,512
13,516
8,699 111,416
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
37
Balance at 1-Jan-2024
689
88,512
13,516
8,699 111,416
Additions
-
102
-
4,382
4,484
Depreciation
(112)
-
(344)
-
(456)
Balance at 30-Jun-2024
577
88,614
13,172
13,081 115,444
Cost
1,673
88,614
16,457
13,081 119,825
Accumulated depreciation
(1,096)
-
(3,285)
-
(4,381)
Balance at 30-Jun-2024
577
88,614
13,172
13,081 115,444
At 30 June 2024, the Group’s market capitalisation is lower than its net asset, this represented an indicator of
impairment. The Group has determined that there is only one cash generating unit and it consists of the
inventories, property, plant and equipment, security deposits, associated exploration assets, and provision for
rehabilitation. The recoverable amount estimation was based on the estimated value in use of the Nifty Copper
Mine with a discount rate of 13% applied to the cash flow projections. No impairment was recognised as a
result of this assessment.
10. Deferred Exploration and Evaluation Expenditure
30-Jun-2024
$’000
31-Dec-2023
$’000
Opening balance
33,364
31,995
Exploration and evaluation expenditure incurred during the year
1,268
1,369
Closing balance
34,632
33,364
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation
phases is dependent on the successful development and commercial exploitation or sale of the respective
areas.
11. Other non-current financial assets
30-Jun-2024
$’000
31-Dec-2023
$’000
Security deposits and bank guarantees
7,079
7,079
7,079
7,079
12. Trade and other payables
30-Jun-2024
$’000
31-Dec-2023
$’000
Current:
Trade payables and accrued expenses
5,822
3,783
Other consumption taxes payable
130
580
5,952
4,363
13. Lease liabilities
30-Jun-2024
$’000
31-Dec-2023
$’000
Leased premises - current
418
465
Leased premises - non-current
1,005
1,200
1,423
1,665
Movement in lease liabilities
Opening balance
1,665
1,051
Interest
42
-
Additions
23
1,098
Adjustment
-
(105)
Principal repayments
(307)
(379)
Closing balance
1,423
1,665
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
38
14. Borrowings
30-Jun-2024
$’000
31-Dec-2023
$’000
Opening Balance
14,296
-
Loan drawdown
-
21,450
Interest charges
-
(1,398)
Arrangement fees capitalised
906
1,365
Loan repayment
-
(6,859)
Gain/(Loss) due to forex movement
814
(262)
16,016
14,296
During 2023, the Company entered into an 18-month, USD-denominated Senior Secured Loan Facility (“Loan
Facility”) with Nebari Natural Resources Credit Fund II, LP (“Nebari”). The facility has refinanced a short term $6
million Secured Loan Deed facility that was drawn in March 2023 and provides additional working capital to advance
the development of Nifty. The Loan Facility provides up to USD14.5 million in two Tranches.
The material terms of the Loan Facility are as follows:
▪
Funded amount:
up to USD14.5 million, net of original issue discounts (“OID”)
▪
Facility term:
until 31 December 2024
▪
Coupon:
Secured Overnight Financing Rate (“SOFR”) +6.5% p.a. payable monthly
▪
OID:
5.0% on Tranche 1 and 10.0% on Tranche 2
▪
Amortisation:
100% bullet on maturity
▪
Warrants:
2-year, 1 for 5.5 warrants which will be priced at either a 20% premium to the share price
of a future equity raise or, if no equity raise is completed by 31 December 2023, the warrant strike price shall
be priced at A$0.088 per share
▪
Security:
over the assets of Cyprium and its projects
The Loan Facility contains other terms and conditions that are customary for an agreement of this nature.
15. Convertible notes
30-Jun-2024
$’000
31-Dec-2023
$’000
Opening balance
33,935
31,700
Unwinding of discounting
1,936
3,675
Interest paid on Convertible Notes
(1,440)
(1,440)
Closing balance
34,431
33,935
Current
34,431
-
Non-Current
-
33,935
34,431
33,935
The parent entity issued 4% convertible notes for $36.0 million on 30 March 2021. The notes are convertible
into ordinary shares of the parent entity, at the option of the holder, or repayable on 30 March 2025. The
maximum number of ordinary shares of the parent entity upon conversion is 101,373,777. The initial fair
value of the liability portion of the convertible notes was determined using a market interest rate for an
equivalent non-convertible note at the issue date. The liability is subsequently recognised on an amortised
cost basis until extinguished on conversion or maturity of the convertible notes. The remainder of the
proceeds is allocated to the convertible borrowings – equity component and recognised in shareholders’
equity (refer to note 19) and is not subsequently remeasured.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
39
16. Provisions
30-Jun-2024
$’000
31-Dec-2023
$’000
Provision for Rehabilitation
34,461
36,345
34,461
36,345
Movements in Provision
Opening balance
36,345
35,181
Transfer – PPE
(1,884)
1,164
Closing balance
34,461
35,181
Mine Rehabilitation
The mine rehabilitation provision is recognised for the estimated cost of rehabilitation, decommissioning,
restoration, and long-term monitoring of areas disturbed during operation of the Nifty Copper Operations up
to reporting date but not yet rehabilitated. The provision is based upon current cost estimates and has been
determined on a discounted basis with reference to current legal requirements and technology. The
rehabilitation is expected to occur following the processing of copper ore from the Nifty Copper open pit
(subject to regulatory approvals).
17. Issued capital
30-Jun-2024
$
31-Dec-2023
$
(a) Issued and paid-up capital
Issued and fully paid
301,009,131
301,009,131
30-Jun-2024
31-Dec-2023
No. of shares
$
No. of shares
$
(b) Movement in ordinary shares on issue
Opening Balance
1,524,712,325
301,009,131
730,198,300
271,684,935
Shares issued and fully paid
-
-
794,514,025
31,780,000
Transaction costs on share issues
-
-
-
(2,455,804)
1,524,712,325
301,009,131
1,524,712,325
301,009,131
30-Jun-2024
31-Dec-2023
No. of shares
$
No. of shares
$
(c) Movement in performance rights
Opening Balance
120,405,828
4,516,091
58,250,000
3,718,466
Performance rights issued
12,800,000
-
92,855,828
-
Performance rights vested
-
-
-
-
Performance rights lapsed
(53,413,600)
-
(30,700,000)
-
Share based payments
-
1,042,903
-
797,625
79,792,228
5,558,994
120,405,828
4,516,091
During the year the Company issued 12,800,000 performance rights to the incoming senior executives.
Performance Conditions
Number
Board approval of the FID with respect to the SX restart project;
or a minimum $0.7 per Share 30-day VWAP
10,000,000
1,000 tonnes of copper plated and sold;
or a minimum $0.11 per Share 30-day VWAP
2,800,000
Total expiring in May 2029
12,800,000
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
40
The breakdown of the Business Incentive performance rights were as follows:
Performance Conditions
Number
Production of 10,000 tonnes of copper at the Nifty Project
2,842,560
Announcement of mineral reserves of 400,000 tonnes contained copper
5,685,120
Announcement of mineral reserves of 2.0mt contained copper equivalent metal
5,685,120
Total expiring in September 2028
14,212,800
That number of Shareholder Reward performance rights that vest and become exercisable into Shares were
to be assessed by the appreciation of the Company’s Share price in comparison to a peer Comparator
Companies over the measurement period (30 June 2023 to 30 June 2026) with reference to the percentile of
the Comparator Companies which the Company’s Share price sits.
Performance Conditions
Number
Commence mining of the Nifty Copper open pit
6,250,000
Commissioning of the SX-EW processing plant at Nifty; or
a minimum $0.40 per Share 20-day VWAP
6,250,000
Copper production exceeding 25,000 tonnes of contained copper metal after
commencement of mining of the Nifty Copper mine; or
a minimum $0.475 per Share 20-day VWAP
6,250,000
Cyprium’s quarterly production of at least 50,000 tonnes per annum copper
equivalent; or
a minimum $0.50 per Share 20-day VWAP
6,250,000
Total expiring in June and July 2026
25,000,000
Performance Conditions
Number
Commence mining of the Nifty Copper open pit
250,000
Commissioning of the SX-EW processing plant at Nifty; or
a minimum $0.40 per Share 20-day VWAP
250,000
Expand Cyprium’s copper equivalent resource inventory to 2.0mt contained copper
metal; or a minimum $0.45 per Share 20-day VWAP
250,000
Copper production exceeding 25,000 tonnes of contained copper metal after
commencement of mining of the Nifty Copper mine; or
a minimum $0.475 per Share 20-day VWAP
250,000
Cyprium’s quarterly production of at least 50,000 tonnes per annum copper
equivalent; or a minimum $0.50 per Share 20-day VWAP
250,000
Total expiring in August 2027
1,250,000
In addition, the Company issued 26,529,428 performance rights to employees and contractors in 2023.
These have the following vesting conditions:
Performance Conditions
Number
Achievement of a final integrated life of mine (LOM) business plan for the
redevelopment of the Nifty Copper Project, based on the development of an open pit
mine, approved by the Board
800,000
Financial close of debt and equity capital sufficient to fund the initial development of
the LOM business plan for the Nifty Copper Project (as determined by the LOM business
plan)
2,460,000
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
41
First copper production as per the Board approved integrated LOM business plan at
the Nifty Copper Project
1,640,000
Quarterly copper production at the Nifty Copper Project an annualised rate exceeding
20,000 tonnes p.a.
2,050,000
Publish a Sustainability Report
1,250,000
Total expiring in December 2028
8,200,000
Note: In addition to the performance conditions, 1/3rd of the total allocation will vest each year based on
continuous service over a period of three (3) years from the commencement date.
The performance rights which are subject to vesting condition 1 to 5 above are valued at $0.03 each, being
the Company’s share price at the date of the issue. At the date of this report, the Directors consider it is
probable that these vesting conditions will be achieved and that it is appropriate to bring the value of these
rights to account over the vesting period.
Performance Conditions
Number
Continuous service to the Company for a period of 12 months from the date of issue
6,109,809
Continuous service to the Company for a period of 24 months from the date of issue
6,109,809
Continuous service to the Company for a period of 36 months from the date of issue
6,109,810
Total expiring in December 2028
18,329,428
Performance Conditions
Number
Board approval of the FID with respect to the SX restart project;
or a minimum $0.7 per Share 30-day VWAP
10,000,000
1,000 tonnes of copper plated and sold;
or a minimum $0.11 per Share 30-day VWAP
2,800,000
Total expiring in May 2029
12,800,000
The performance rights which are subject to vesting condition 1 to 2 above are valued at $0.035 and $0.033
respectively. In determining the value of the Performance Rights, the Hoadley Trading & Investment Tools
(“Hoadley”) ES02 and Barrier1 model has been used with the following inputs:
▪
Share price on date of issue $0.039 per share
▪
Expiry date 28 May 2029
▪
Risk free rate of 3.99%
▪
Volatility of 100%
At the date of this report, the Directors consider it is probable that these vesting conditions will be achieved
and that it is appropriate to bring the value of these rights to account over the vesting period.
30-Jun-2024
31-Dec-2023
No. of shares
$
No. of shares
$
(d) Movement in options and warrants
Opening Balance
504,189,269
1,390,482
20,274,755
1,589,557
Free attaching options
-
-
397,257,013
-
Options issued as cost of capital
-
-
26,603,966
184,721
Warrants issued
-
-
80,328,290
1,205,761
Options Lapsed
-
-
(20,274,755)
(1,589,557)
504,189,269
1,390,482
504,189,269
1,390,482
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
42
In total 423,860,979 options were issued during the prior year, out of which 26,603,966 were free standing.
These free-standing options have been valued at $184,721 using a Black and Scholes option pricing model
with the following inputs:
▪
Share price on date of issue $0.040 per share
▪
Risk free rate of 3.90%
▪
Volatility of 75%
Also, during the prior year Nebari was issued 80,328,290 warrants.
These warrants have been valued at $1,205,761 using a Black and Scholes option pricing model with the
following inputs:
▪
Share price on date of issue $0.040 per share
▪
Risk free rate of 3.90%
▪
Volatility of 75%
18. Reserves
30-Jun-2024
$’000
31-Dec-2023
$’000
Foreign exchange translation reserve
778
778
Share-based payment reserve
6,949
5,907
7,727
6,685
Share-based payment reserve
Opening balance
5,907
5,308
Allocation to Accumulated Losses
-
(1,590)
Capital raise cost
-
185
Loan issue costs
-
1,206
Vesting expense on performance rights capitalised to exploration
194
245
Vesting expense on performance rights expensed as a share-based
payments
848
553
Closing balance
6,949
5,907
The share-based payments reserve relates to the cumulative expense for share-based awards granted to
directors, employees and contractors in prior periods and performance rights granted to employees in the
current year as well as options to the vendor of Paterson Copper Pty. Ltd. Upon the exercise of the options
or conversion of the performance rights, the balance of the reserve relating to those securities is transferred
to issued capital.
19. Convertible borrowings – equity component
30-Jun-2024
$’000
31-Dec-2023
$’000
Convertible note – equity component
8,748
8,748
8,748
8,748
20. Directors and key management personnel disclosures
30-Jun-2024
$’000
31-Dec-2023
$’000
Short term employee benefits
325
597
Share-based payments
409
160
Other benefits
645
917
Total Remuneration
1,379
1,674
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
43
21. Related Party Disclosures
a) Key management personnel
For Director related party transactions please refer to note 20 “Key Management Personnel Disclosures”.
There was a related party of Mr Clive Donner employed in the business during the year on normal
commercial terms.
Subsidiaries
The consolidated financial statements include the financial statements of Cyprium Metals Limited and the
following subsidiaries:
Equity Holding
Name of Entity
Country of incorporation
2024
2023
Cyprium Australia Pty Ltd
Australia
100%
100%
Cyprium Services Pty Ltd
Australia
100%
100%
Paterson Copper Pty Ltd
Australia
100%
100%
Nifty Copper Pty Ltd
Australia
100%
100%
Maroochydore Copper Pty Ltd
Australia
100%
100%
Cyprium Metallurgy Australia Pty Ltd
Australia
100%
100%
PT Indonusa Mining Services
Indonesia
100%
100%
22. Audit Remuneration
30-Jun-2024
$’000
31-Dec-2023
$’000
Audit Services:
HLB Mann Judd:
Audit and review of financial reports
45
76
Total Remuneration
45
76
23. Loss per share
30-Jun-2024
$’000
31-Dec-2023
$’000
Loss used in calculating basic and diluted EPS:
From continuing operations
(12,588)
(19,568)
(12,588)
(19,568)
Number of
shares
Number of
shares
Weighted average number of ordinary shares to calculate basic loss per
share
1,524,712,325
971,295,778
Basic loss per share (cps) from continuing operations
(0.83)
(2.01)
Weighted average number of ordinary shares to calculate diluted loss
per share
1,524,712,325
971,295,778
Diluted loss per share (cps) from continuing operations
(0.83)
(2.01)
24. Financial Risk Management
Exposure to foreign currency risk, credit risk, liquidity risk and interest rate risk arises in the normal course of
the Company’s business. The Company uses different methods as discussed below to manage risks that arise
from these financial instruments. The objective is to support the delivery of the financial targets while
protecting future financial security.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
44
a) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with
financial liabilities. The Company manages liquidity risk by maintaining sufficient cash facilities to meet the
operating requirements of the business and investing excess funds in highly liquid short-term investments.
The responsibility for liquidity risk management rests with the Board of Directors. Alternatives for sourcing
our future capital needs include our cash position and the issue of equity instruments. These alternatives are
evaluated to determine the optimal mix of capital resources for our capital needs. The Directors expect that
present levels of liquidity along with future capital raising will be adequate to meet expected capital needs.
Remaining contractual maturities
The following tables detail the Groups remaining contractual maturity for its financial instrument liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the financial liabilities are required to be paid. The tables include both interest and
principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from
their carrying amount in the statement of financial position.
Consolidated 2024
Weighted
average
interest rate
%
1 year
or less
Between 1
year or 2
years
Between 2
year or 5
years
Over
5
years
Remaining
contractual
maturities
Non-derivatives
Non-interest bearing
Trade payables and other
payables
-
5,952
-
-
-
5,952
Interest bearing
Loan
12%
16,839
-
-
-
16,839
Convertible notes payable
4%
37,440
-
-
-
37,440
Lease Liability
5%
418
484
521
-
1,423
Total non-derivatives
54,697
484
521
-
55,702
Consolidated 2023
Weighted
average
interest rate
%
1 year
or less
Between 1
year or 2
years
Between 2
year or 5
years
Over
5
years
Remaining
contractual
maturities
Non-derivatives
Non-interest bearing
Trade payables and other
payables
-
2,433
-
-
-
2,433
Other payables
-
1,930
-
-
-
1,930
Interest bearing
Loan
12%
16003
-
-
-
16,003
Convertible notes payable
4%
37,440
-
-
-
37,440
Lease Liability
5%
465
430
770
-
1,665
Total non-derivatives
58,271
430
770
-
59,471
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
45
b) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the
fair value of financial instruments. The Company’s exposure to market risk for changes to interest rate risk
relates primarily to its earnings on cash and term deposits. The Company manages the risk by investing in
short term deposits.
2024
$’000
2023
$’000
Cash and cash equivalents
7,325
22,591
Borrowings (refer to note 14)
(16,016)
(14,296)
Audit and review of financial reports
(8,691)
8,295
Interest rate sensitivity
The following table demonstrates the sensitivity of the Company’s Statement of Profit or Loss and Other
Comprehensive Income to a reasonably possible change in interest rates, with all other variables constant.
2024
2023
Change in basis points
Effect on
Post Tax
Loss $’000
Effect on Equity
including
Accumulated losses
$’000
Increase/(Decrease)
Effect on
Post Tax
Loss $’000
Effect on Equity
including
Accumulated losses
$’000
Increase/(Decrease)
Increase 75 basis points
(65)
(65)
62
62
Decrease 75 basis points
65
65
(62)
(62)
A sensitivity of 75 basis points has been used as this is considered reasonable given the current level of both
short term and long-term Australian Dollar interest rates. The change in basis points is derived from a review
of historical movements and management’s judgement of future trends.
c) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an
obligation and cause the Company to incur a financial loss. The Company’s maximum credit exposure is the
carrying amounts on the statement of financial position. The Company holds financial instruments with credit
worthy third parties. At 30 June 2024, the Company held cash at bank with all of the Company’s cash being
held in financial institutions with a rating from Standard & Poors of AA or above (long term). The Company
has no past due or impaired debtors as 30 June 2024.
d) Fair value measurement
The Directors consider that the carrying value of current receivables and current payables approximate their
fair values.
25. Parent Entity Information
The following details information related to the parent entity, Cyprium Metals Limited, at 30 June 2024.
The information presented has been prepared using consistent accounting policies with those presented in
note2.
30-Jun-2024
$’000
31-Dec-2023
$’000
Current Assets
8,041
22,044
Total Assets
93,417
84,893
Current Liabilities
(52,941)
(15,035)
Total Liabilities
(53,475)
(49,628)
Net Assets
39,942
57,304
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
46
Issued Capital
301,010
301,010
Reserves
6,949
5,907
Convertible borrowings- equity component
8,748
8,748
Accumulated losses
(276,765)
(258,356)
Total Equity
39,942
57,304
Loss of the parent entity
(18,409)
(9,051)
Total comprehensive loss of the parent entity
(18,409)
(9,051)
Other Commitments
The Company had no commitments as at 30 June 2024.
Contingent Liabilities
The Company had no contingent liabilities as at 30 June 2024.
26. Contingent Assets and Liabilities
There are no known contingent assets or liabilities as at 30 June 2024 (31 December 2023: nil).
27. Commitments
The Group had no commitments as at 30 June 2024 (31 December 2023: nil).
28. Dividends
No dividend was paid or declared by the Company in the year ended 30 June 2024 for the period since the
end of the financial year and up to the date of this report. The Directors do not recommend that any amount
be paid by way of dividend for the financial year ended 30 June 2024.
29. Segment Information
The Group has identified its operating segments based on the internal reports that are reported to the Board
of Directors (the chief operating decision makers) in assessing performance and in determining the allocation
of resources. The Board as a whole will regularly review the identified segments in order to allocate resources
to the segment and to assess its performance.
The Group operates predominately in one industry, being the exploration of mineral resources. The
geographic area that the entity operated in during the year was Australia.
30. Significant Events after the Reporting Date
Commercial Strategic Partnership
On 26 July 2024, Cyprium announced a commercial strategic partnership with Glencore. Further to this
announcement, on 30 August 2024, Cyprium announced a A$40m senior secured loan facility with Glencore.
On 30 September 2024, the Company announced that it had executed its long form documentation with
Glencore which resulted in the Company completing a drawdown of US$27.3 million from the facility with
Glencore. This new facility has refinanced the existing senior secured Debt facility Nebari Resources Credit
Fund II LP U$15.37 million.
On 19 August 2024, the Company announced the 2024 Mineral Resource Estimate (MRE) for the existing
above-surface material stacked on the heap leach pads at the Nifty Copper Mine (Nifty). Highlights included
indicated and inferred MRE of 12.7 million tonnes grading 0.43% Cu for contained copper of 54,050 tonnes.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2024
47
Convertible Notes Terms Amended
On 22 August 2024, the Company announced that agreed with Metals X Limited (Metals X) to amend the
terms of its unsecured convertible notes. It was noted that the parties had entered into a binding term sheet
under which the redemption date had been extended to 3 years to the quarter ending December 2028, $5
million amendment fee was payable in two instalments of $2.5 million, the annual interest rate had been
adjusted to 6% per year, the conversion price had been amended to a 25% premium to the share price at
which Cyprium next raises equity capital, the convertible notes can be redeemed early at Cyprium’s option
through payment of 115% of face value, Metals X will be issued with 40.6 million options (2 year expiry and
exercise price equal to the conversion price) and that Cyprium shareholder approval would be required for
the issue of options and amendments of convertible notes (which would be sought at the next meeting of
shareholders).
Consolidated Entity Disclosure Statement
48
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance with the s295(3A)(a) of the
Corporations Act 2001 and includes the required information for Cyprium Metals Limited and the entities it
controls in accordance with AASB 10 Consolidated Financial Statements.
Tax Residency
S295(3A)(vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency may involve judgement as there are different
interpretations that could be adopted, and which could give rise to different conclusions regarding residency.
In determining tax residency , the Group has applied the following interpretations:
Australian Tax Residency
Current legislation and judicial precent has been applied, including having regard to the Tax Commissioner’s
public guidance.
Foreign tax residency
Where appropriate, independent tax advisers have been engaged to assist in the determination of tax
residence to ensure applicable foreign tax legislation has been complied with.
Name of Entity
% of shares
capital held
Country
of
incorporation
Australian resident
or foreign resident
(for tax purposes)
Foreign
tax
jurisdiction(s)
of
foreign
residents
Cyprium Metals Limited
N/A
Australia
Australia
N/A
Cyprium Australia Pty Ltd
100%
Australia
Australia
N/A
Cyprium Services Pty Ltd
100%
Australia
Australia
N/A
Paterson Copper Pty Ltd
100%
Australia
Australia
N/A
Nifty Copper Pty Ltd
100%
Australia
Australia
N/A
Maroochydore Copper Pty Ltd
100%
Australia
Australia
N/A
Cyprium Metallurgy Australia Pty Ltd
100%
Australia
Australia
N/A
PT Indonusa Mining Services
100%
Indonesia
Foreign
Indonesia
Directors Declaration
49
In accordance with a resolution of the Directors of Cyprium Metals Limited, I state that:
1. In the opinion of the Directors:
a)
the financial statements and notes of Cyprium Metals Limited for the year ended 30 June 2024 are in
accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Group’s financial position as 30 June 2024 and of its performance
for the year ended on that date; and
ii.
complying with Accounting Standards (including the Australian Accounting Interpretations), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b)
the financial statements and notes also comply with International Financial Reporting Standards as
disclosed in note 2(b).
2. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
3. This declaration has been made after receiving the declarations required to be made by the Directors in
accordance with sections of 295A of the Corporations Act 2001 for the financial year ended 30 June 2024.
4. The Consolidated Entity Disclosure Statement is true and correct.
On behalf of the Board
Matthew (Matt) Fifield | Executive Chairman
Perth, WA
30 September 2024
50
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Cyprium Metals Limited for the
year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2024
D B Healy
Partner
51
INDEPENDENT AUDITOR’S REPORT
To the Members of Cyprium Metals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cyprium Metals Limited (“the Company”) and its controlled entities
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2024, 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 financial
statements, including material accounting policy information, the consolidated entity disclosure statement
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 Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; 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 2(u) in the financial report, which indicates 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 Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
52
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of Deferred Exploration and Evaluation Expenditure
Refer to Note 10
In accordance with AASB 6 Exploration for and Evaluation
of Mineral Resources, the Group capitalises acquisition
costs of rights to explore as well as subsequent exploration
and evaluation expenditure, applying the cost model after
recognition.
Our audit focussed on the Group’s assessment of the
carrying amount of the deferred exploration and evaluation
expenditure because this is a significant asset of the
Group. We planned our work to address the audit risk that
the capitalised expenditure might no longer meet the
recognition criteria of the standard. In addition, we
considered it necessary to assess whether facts and
circumstances existed to suggest that the carrying amount
of the deferred exploration and evaluation expenditure
may exceed its recoverable amount.
The carrying value of deferred exploration and evaluation
expenditure is a key audit matter due to the significance of
this asset to the financial statements.
Our procedures included but were not limited
to the following:
-
Obtained an understanding of the key
processes
associated
with
management’s review of the carrying
values of deferred exploration and
evaluation expenditure;
-
Considered
the
Director’s
assessment of potential indicators of
impairment;
-
Obtained evidence that the Group
has current rights to tenure of its
areas of interest;
-
Examined the forecast for the year
ended 30 June 2025 for planned
exploration
and
evaluation
expenditure
and
discussed
with
management the nature of planned
ongoing activities;
-
Enquired
with
management,
reviewed ASX announcements and
reviewed
minutes
of
Directors’
meetings to ensure that the Group
had not resolved to discontinue
exploration and evaluation at any of
its areas of interest; and
-
Examined the disclosure made in the
financial report.
Carrying value of Property, Plant and Equipment
Refer to Note 9
As at 30 June 2024, the Group recorded balances of
$115.4m of property, plant and equipment.
An
impairment
assessment
was
conducted
by
management during the year in relation to the assets
comprising of the Nifty Copper Project due to the existence
of an impairment indicator relating to the market
capitalisation being below net assets.
Our procedures included but were not limited
to the following:
-
Obtained an understanding of the key
processes
associated
with
the
preparation of the model used to
assess the recoverable amount of the
Nifty Copper Project;
-
Critically evaluated management’s
methodology in the value-in-use
53
The impairment assessment under AASB 136 Impairment
of Assets involved a comparison of the recoverable
amount of the Nifty Copper Project assets with their
carrying amounts in the financial statements. Recoverable
amount is based upon the higher of fair value less costs of
disposals and value-in-use.
The evaluation of the recoverable amount of these assets
is considered a key audit matter as it is based upon a
value-in-use
calculation
which
required
significant
judgement in verifying key assumptions supported the
expected discounted future cash flow of the Nifty Copper
Project.
model
and
the
basis
for
key
assumptions;
-
Performed sensitivity analysis around
key inputs used in the value-in-use
model that either individually or
collectively be required for assets to
be impaired and considered the
likelihood of such a movement in
those key assumptions arising;
-
Reviewed the mathematical accuracy
of the value-in-use model;
-
Compared the resulting net present
value to the carrying amount of assets
within the cash-generating unit;
-
Considered
whether
the
assets
comprising the cash-generating unit
had been correctly allocated;
-
Considered the appropriateness of
the discount rate used; and
-
Assessed the appropriateness of the
disclosures included in the relevant
notes to the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, 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.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
54
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
−
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
−
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
55
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of Cyprium Metals Limited for the year ended 30 June 2024
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.
HLB Mann Judd
D B Healy
Chartered Accountants
Partner
Perth, Western Australia
30 September 2024
ASX Additional Information
56
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this
report is as follows. The information is current as at 19 September 2024.
Distribution of Share Holders
Ordinary Shares
Number of Holders
Number of Shares
1 – 1,000
306
86,708
1,001 – 5,000
441
1,419,071
5,001 – 10,000
410
3,280,810
10,001 – 100,000
1,648
69,528,877
100,001 – and over
983
1,451,646,859
TOTAL
3,788
1,525,962,325
There were 1,450 holders of ordinary shares holding less than a marketable parcel.
Top Twenty Share Holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
Shares
%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
220,588,794
14.46%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
205,539,640
13.47%
CITICORP NOMINEES PTY LIMITED
93,818,114
6.15%
P R C M NOMINEES PTY LIMITED
78,504,916
5.14%
BNP PARIBAS NOMINEES PTY LTD
73,438,467
4.81%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
46,034,520
3.02%
PRCM
31,474,619
2.06%
PERTH SELECT SEAFOODS PTY LTD
30,000,000
1.97%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
22,456,322
1.47%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
19,000,000
1.25%
HAWKSBURN CAPITAL PTE LTD
17,598,911
1.15%
UBS NOMINEES PTY LTD
14,748,551
0.97%
NEBARI NATURAL RESOURCES AIV II LP
12,500,000
0.82%
MS NADA SAADE
9,401,636
0.62%
BLUEDALE PTY LTD
9,202,152
0.60%
GIST HOLDINGS PTY LTD
7,800,000
0.51%
ROSS BHAPPU
7,500,000
0.49%
OMNI INVESTMENTS PTY LIMITED
7,022,499
0.46%
MR KARL RUCKLINGER
7,000,000
0.46%
MR RAM SHANKER KANGATHARAN
6,956,522
0.46%
Total
920,585,663
60.33%
ASX Additional Information
57
Substantial Shareholders
The names of substantial Shareholders who have notified the Company in accordance with Section 671B of the
Corporations Act are:
Substantial shareholder
Number of shares*
%*
Date
Flat Footed L.L.C, FF Hybrid, L.P and GP Recovery Fund L.L.C
185,678,823
12.18%
28.6.2024
P R C M Nominees Pty Limited
109,979,535
7.21%
25.3.2024
CI Investments Inc.
79,044,171
5.18%
3.11.2023
* Figures as reported on the last Substantial Shareholder notice received by the Company.
On-Market Buy Back
There is no current on-market buy back.
Voting Rights
All ordinary shares carry one vote per share without restriction. Options, warrants or performance rights have
no voting rights.
Warrants
As at the date of this report, there were 80,328,290 warrants on issue.
Share Options
As at the date of this report, there are 423,860,979 unlisted options exercisable at 6 cents each, expiring 31
December 2024.
Performance Rights
As at the date of this report, there were 78,592,228 performance rights on issue.
About Cyprium Metals Limited and Schedule of Tenements
58
About Cyprium Metals Limited
Cyprium Metals Limited (ASX: CYM) is an ASX listed company with copper projects in Australia. The Company
has a highly credentialed management team that is experienced in successfully developing sulphide heap
leach copper projects in challenging locations. The Company’s strategy is to acquire, develop and operate
mineral resource projects in Australia which are optimised by innovative processing solutions to produce
copper metal on-site to maximise value.
The Company has projects in the Murchison and Paterson regions of Western Australia that is host to a
number of base metals deposits with copper and gold mineralisation.
Paterson Copper Projects
This portfolio of copper projects comprises the Nifty Copper Mine, Maroochydore Copper Project and
Paterson Exploration Project.
The Nifty Copper Mine (‘Nifty’) is located on the western edge of the Great Sandy Desert in the north-eastern
Pilbara region of Western Australia, approximately 330km southeast of Port Hedland. Nifty contains a 2012
JORC Mineral Resource of 940,200 tonnes of contained copper(i). Cyprium is focussed on a heap leach solvent
extraction and electrowinning (SX-EW) operation to retreat the current heap leach pads as well as open pit
oxide and transitional material. Studies will investigate the potential restart of the copper concentrator to
treat open pit sulphide material.
The Maroochydore deposit is located ~85km southeast of Nifty and includes a shallow 2012 JORC Mineral
Resource of 486,000 tonnes of contained copper(ii). Aeris Resources Limited (ASX: AIS, formerly Straits
Resources Limited) holds certain rights to “buy back up to 50%” into any proposed mine development in
respect of the Maroochydore Project, subject to a payment of three times the exploration expenditure
contribution that would have been required to maintain its interest in the project.
An exploration earn-in joint venture has been entered into with IGO Limited (ASX: IGO) on ~2,400km2 of the
Paterson Exploration Project. Under the agreement, IGO is to sole fund $32 million of exploration activities
over 6.5 years to earn a 70% interest in the Paterson Exploration Project, including a minimum expenditure of
$11 million over the first 3.5 years. Upon earning a 70% interest, the Joint Venture will form and IGO will free-
carry Paterson Copper to the completion of a pre-feasibility study (PFS) on a new mineral discovery.
Murchison Copper-Gold Projects
Cyprium has an 80% attributable interest in a joint venture with Musgrave Minerals Limited (ASX: MGV) at the
Cue Copper-Gold Project, which is located ~20km to the east of Cue in Western Australia. Cyprium will free-
carry the Cue Copper Project to the completion of a definitive feasibility study (DFS). The Cue Copper-Gold
Project includes the Hollandaire Copper-Gold Mineral Resources of 51,500 tonnes contained copper(iii), which
is open at depth. Metallurgical test-work has been undertaken to determine the optimal copper extraction
methodology, which resulted in rapid leaching times (refer to 9 March 2020 CYM announcement, “Copper
Metal Plated”, https://cypriummetals.com/copper-metal-plated/).
The Nanadie Well Project is located ~650km northeast of Perth and ~75km southeast of Meekatharra in the
Murchison District of Western Australia, within mining lease M51/887, includes the Nanadie Well Copper-Gold
Mineral Resources of 162,000 tonnes contained copper(iv), which is open at depth and along strike to the
north.
The Cue and Nanadie Well Copper-Gold projects are included in an ongoing scoping study, to determine the
parameters required to develop a copper project in the region, which provides direction for resource
expansion work.
(i) Refer to CYM ASX announcement dated 16 May 2022 “28.4% increased Nifty Copper MRE to 940,200t copper metal”
(ii) Refer to MLX ASX announcements: 10 March 2020, “Nifty Copper Mine Resource Update” and 18 August 2016, “Annual Update of
Mineral Resources and Ore Reserves”
(iii) Refer to CYM ASX announcement: 29 September 2020, “Hollandaire Copper-gold Mineral Resource Estimate”
(iv) Refer to CYM ASX announcement: 19 July 2022, “Nanadie Well Mineral Resource Estimate”
About Cyprium Metals Limited and Schedule of Tenements
59
Disclaimer
References may have been made in this report to certain ASX announcements, including references
regarding exploration results, mineral resources, and ore reserves. For full details, refer to said
announcement on said date. The Company is not aware of any new information or data that materially
affects this information. Other than as specified in this announcement and the mentioned announcements,
the Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and, in the case of estimates of Mineral
Resources, Exploration Target(s) or Ore Reserves that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
About Cyprium Metals Limited and Schedule of Tenements
60
Tenement Information
Tenement
Location
Interest
Cyprium has an 80% joint venture interest in the Cue Copper-Gold
project’s copper, gold, and silver mineralisation however
Ramelius Resources Limited (ASX Code: RMS) has a 100% interest
in primary gold deposits that are not associated with copper-gold
deposits, for the following tenements at the Cue Copper Project,
WA:
M20/0225, M20/0245, M20/0277, M20/526, E20/0606, E20/0608,
E20/0616, E20/0629, E20/0630, E20/0659, E20/0698, E20/0700,
E20/0836 and P20/2279
Murchison
region, WA
80%
Cyprium has a 100% interest in the Nanadie Well Copper-Gold
Project, WA, which comprises the following tenements:
M51/887, E51/1040 L51/124, L20/90 and E51/1987
Murchison
region, WA
100%
Cyprium has a 100% interest in the Paterson Copper Project
(Nifty Copper Mine and Maroochydore Copper Project), WA,
which comprises the following tenements:
E45/1018, E45/1840, E45/1841, E45/3011, E45/4318, M45/314,
M45/315,
M45/317,
M45/318,
M45/492,
P45/2924,
P45/2927,
P45/3055, P45/3177, P45/3151, L45/102, L45/128, L45/143, L45/148,
L45/74, L45/91, M271SA, E45/4319, E45/5705, E45/6263, M45/752,
M45/753, M45/754, M45/711, M45/712, M45/713, M45/745 and
M45/746
Paterson
Province, WA
100%
Cyprium has a 100% interest in the Paterson Exploration Project,
WA (IGO earning up to 70%), which comprises the following
tenements:
E45/1839, E45/2280, E45/2415, E45/2771, E45/2772, E45/2773,
P45/2792, P45/2793, P45/2794, P45/2801, P45/2802, P45/2803,
P45/2804, P45/2805, P45/2806, P45/2807, P45/2808, E45/3573,
E45/3574, E45/3575, E45/3576, E45/3577, E45/4151, E45/4205,
E45/4234, E45/4862, E45/5199, E45/5300, M45/1109, M45/1110,
M45/1111, M45/1112, M45/1113 and M45/1114
Paterson
Province, WA
100%