ASX:DTR
ABN: 63 149 105 653
Annual Report
Year ending 30 June 2023
2023 Contents
Corporate Information
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional ASX Information
1
2
8
17
18
19
20
21
22
55
56
62
Corporate Directory
Directors & Officers
Mark Johnson AO Chairman
Stephen Baghdadi Managing Director
Greg Hall Non-Executive Director
Anthony Ferguson Non-Executive Director
Bill Lannen Non-Executive Director
John Smith Company Secretary
Registered Office
Level 29, 2 Chifley Square, Sydney NSW 2000
Postal Address
Level 29, 2 Chifley Square, Sydney NSW 2000
T: +61 (02) 9375 2353
E-mail: info@datelineresources.com.au
Website: www.datelineresources.com.au
Securities Exchange
Australian Securities Exchange Limited (“ASX”)
Home Exchange – Sydney
ASX Symbol – DTR (ordinary shares)
Australian Company Number
ACN 149 105 653
Australian Business Number
ABN 63 149 105 653
Bankers
Commonwealth Bank of Australia
48 Martin Place, Sydney NSW 2000
Website: www.commbank.com.au
Auditors
DFK Laurence Varnay Auditors Pty Ltd
Level 22, 222 Pitt Street, Sydney NSW 2000
Website: www.dfklv.com.au
Share Registry
Automic Group
GPO Box 5193, Sydney NSW 2001
Website: www.automicgroup.com.au
Solicitors
K & L Gates
Level 31, 1 O’Connell Street, Sydney NSW 2000
Website: www.klgates.com
Domicile and Country
of Incorporation
Australia
The Company’s Corporate Governance
Statement can be found on the Company’s
website www.datelineresouces.com.au
1
DATELINE RESOURCES Review of Operations
Review of Opera-ons
The Company’s assets during the repor4ng period were in North America, in the states of Colorado
and California. The Company’s main ac4vity during the period was gold explora4on and produc4on as
well as rare earth explora4on.
In the June quarter, the Company announced that it was dives4ng the Gold Links Gold Project and
associated mining and processing infrastructure. Issues with commissioning of the expanded
processing plant was expected to require significant addi4onal funding. The Company made the
decision to put the mine on ‘care and maintenance’ and seek out a partner that would allow
produc4on to recommence. A decision was subsequently made to divest the asset.
At the end of the repor4ng period, the Company is focused on its projects in California. The Company
is exploring the 813,000 ounce Colosseum Gold Project in San Bernardino County as well as assessing
the rare earth poten4al of the project.
In July 2023, the Company announced that it had entered into an agreement to acquire an 80% interest
in the Argos Stron4um Project, also in San Bernardino County. Stron4um is an emerging key
component in permanent magnet motors used in electric vehicles, with significant testwork currently
underway by major electronics companies aimed at commercialising technology that can be used
instead of praseodymium/neodymium magnets.
COLOSSEUM GOLD AND RARE EARTH PROJECT
Gold
A major milestone for the project was achieved at the start of the repor4ng period with the defini4on
of a JORC-2012 Mineral Resource Es4mate for the gold component of the Colosseum Project.
Colosseum had an original 1.1Moz resource when es4mated pre-mining, with 344,000 ounces
produced from 1988-1993 before mining ceased due to a low gold price environment.
Dateline has es4mated a Total Mineral Resource Es4mate of 20.9Mt @ 1.2g/t Au for 813,000 ounces
at Colosseum, as shown in the table below.
Table 1: JORC-compliant Mineral Resource es-mate for Colosseum Gold MineError! Bookmark not defined.
3
Cut-off
Grade g/t
Au
0.48
0.48
0.48
0.48
Tonnes
Grade g/t Au
6,866,000
8,326,000
5,745,000
20,936,000
1.2
1.2
1.3
1.2
Measured
Indicated
Inferred
Total
2
Contained
Ounces
257,000
321,000
234,000
%
32%
39%
29%
813,000
100%
At the start of the repor,ng period, the Company announced the findings of inves,ga,ons by
Table 2: 2022 Micro-Model generated Colosseum in-situ Tonnage/Grade values for varying cut-
offs Error! Bookmark not defined.
(Au g/mt)
offs Error! Bookmark not defined.
Tonnes
Table 2: 2022 Micro-Model generated Colosseum in-situ Tonnage/Grade values for varying cut-
Cutoff
0.48
Cutoff
(Au g/mt)
0.686
0.48
1.029
0.686
1.371
1.029
1.714
1.371
2.057
1.714
2.743
2.057
3.429
2.743
3.429
Notes:
Notes:
20,935,108
Tonnes
15,438,474
20,935,108
8,049,453
15,438,474
4,264,677
8,049,453
2,606,343
4,264,677
1,962,241
2,606,343
1,153,032
1,962,241
693,997
1,153,032
Grade
Au g/mt
1.20
Grade
Au g/mt
1.44
1.20
1.95
1.44
2.67
1.95
3.39
2.67
3.90
3.39
4.97
3.90
6.24
4.97
6.24
Oz Au
812,791
Oz Au
714,842
812,791
505,822
714,842
366,722
505,822
284,461
366,722
246,612
284,461
184,317
246,612
139,247
184,317
139,247
1) Mineral Resource estimated at 0.48g/t Au cut-off;
693,997
2) Numbers may not add up due to rounding. Differences occur when converting from Imperial to Metric units are less than 1%.
1) Mineral Resource estimated at 0.48g/t Au cut-off;
2) Numbers may not add up due to rounding. Differences occur when converting from Imperial to Metric units are less than 1%.
The Company commenced a new 8-holes drilling program in the June quarter aimed at extending the
Mineral Resource at depth as well as infilling areas of low drill density. During the repor4ng period,
the Company announced a bonanza drill result of 63.2m @ 10.28g/t Au, including a higher-grade zone
The Company commenced a new 8-holes drilling program in the June quarter aimed at extending the
of 23.5m @ 21.8g/t Au. Further assays from this hole extended the intercept to 76.2m @ 8.62g/t Au
Mineral Resource at depth as well as infilling areas of low drill density. During the repor4ng period,
post the end of the repor4ng period.
the Company announced a bonanza drill result of 63.2m @ 10.28g/t Au, including a higher-grade zone
of 23.5m @ 21.8g/t Au. Further assays from this hole extended the intercept to 76.2m @ 8.62g/t Au
This intercept builds on the success from mid-2022, where drillhole CM22-05 intersected 100.6m @
post the end of the repor4ng period.
4.16g/t Au from 79.24m downhole. The intercept indicates that there are high grade zones within the
breccia pipe that may be suitable to underground mining
This intercept builds on the success from mid-2022, where drillhole CM22-05 intersected 100.6m @
4.16g/t Au from 79.24m downhole. The intercept indicates that there are high grade zones within the
Pre-Exis.ng Vested Rights
breccia pipe that may be suitable to underground mining
During the March quarter, the Company announced that it has received approval from San Bernardino
Pre-Exis.ng Vested Rights
County, California, for the Company’s applica4on to officially cer4fy pre-exis4ng vested rights to access
and extract mineral resources at the Colosseum mine, and that the final step required to formalise the
During the March quarter, the Company announced that it has received approval from San Bernardino
approval has been completed.
County, California, for the Company’s applica4on to officially cer4fy pre-exis4ng vested rights to access
and extract mineral resources at the Colosseum mine, and that the final step required to formalise the
A review of the land use records noted that historic mining use was customarily and lawfully recognized
approval has been completed.
and a permibed use by right. As such, mineral resource development and related ac4vi4es within the
scope of the vested right shall not require a County Use Permit.
A review of the land use records noted that historic mining use was customarily and lawfully recognized
and a permibed use by right. As such, mineral resource development and related ac4vi4es within the
scope of the vested right shall not require a County Use Permit.
Rare Earths
Rare Earths
two US rare earth specialists, Anthony Mariano Jr. and Anthony N. Mariano, PhD., who had
visited the Colosseum Project mul,ple ,mes looking at the rare earth poten,al of the project1.
At the start of the repor,ng period, the Company announced the findings of inves,ga,ons by
Dr Mariano has previously inves,gated Mountain Pass and the surrounding region.
two US rare earth specialists, Anthony Mariano Jr. and Anthony N. Mariano, PhD., who had
visited the Colosseum Project mul,ple ,mes looking at the rare earth poten,al of the project1.
Dr Mariano has previously inves,gated Mountain Pass and the surrounding region.
1 ASX Announcement 14 April 2022 – REE Advisors appointed to Colosseum Project
1 ASX Announcement 14 April 2022 – REE Advisors appointed to Colosseum Project
ANNUAL REPORT 2023
Review of Operations
Table 2: 2022 Micro-Model generated Colosseum in-situ Tonnage/Grade values for varying cut-
offs Error! Bookmark not defined.
Cutoff
3
(Au g/mt)
0.48
Cutoff
(Au g/mt)
0.686
0.48
1.029
0.686
1.371
1.029
1.714
1.371
2.057
1.714
2.743
2.057
3.429
2.743
Table 2: 2022 Micro-Model generated Colosseum in-situ Tonnage/Grade values for varying cut-
offs Error! Bookmark not defined.
Oz Au
812,791
Oz Au
714,842
812,791
505,822
714,842
366,722
505,822
284,461
366,722
246,612
284,461
184,317
246,612
139,247
184,317
Tonnes
20,935,108
Tonnes
15,438,474
20,935,108
8,049,453
15,438,474
4,264,677
8,049,453
2,606,343
4,264,677
1,962,241
2,606,343
1,153,032
1,962,241
693,997
1,153,032
Grade
Au g/mt
1.20
Grade
Au g/mt
1.44
1.20
1.95
1.44
2.67
1.95
3.39
2.67
3.90
3.39
4.97
3.90
6.24
4.97
Notes:
3.429
1) Mineral Resource estimated at 0.48g/t Au cut-off;
2) Numbers may not add up due to rounding. Differences occur when converting from Imperial to Metric units are less than 1%.
Notes:
139,247
693,997
6.24
1) Mineral Resource estimated at 0.48g/t Au cut-off;
2) Numbers may not add up due to rounding. Differences occur when converting from Imperial to Metric units are less than 1%.
The Company commenced a new 8-holes drilling program in the June quarter aimed at extending the
Mineral Resource at depth as well as infilling areas of low drill density. During the repor4ng period,
the Company announced a bonanza drill result of 63.2m @ 10.28g/t Au, including a higher-grade zone
The Company commenced a new 8-holes drilling program in the June quarter aimed at extending the
of 23.5m @ 21.8g/t Au. Further assays from this hole extended the intercept to 76.2m @ 8.62g/t Au
Mineral Resource at depth as well as infilling areas of low drill density. During the repor4ng period,
post the end of the repor4ng period.
the Company announced a bonanza drill result of 63.2m @ 10.28g/t Au, including a higher-grade zone
of 23.5m @ 21.8g/t Au. Further assays from this hole extended the intercept to 76.2m @ 8.62g/t Au
This intercept builds on the success from mid-2022, where drillhole CM22-05 intersected 100.6m @
post the end of the repor4ng period.
4.16g/t Au from 79.24m downhole. The intercept indicates that there are high grade zones within the
breccia pipe that may be suitable to underground mining
This intercept builds on the success from mid-2022, where drillhole CM22-05 intersected 100.6m @
4.16g/t Au from 79.24m downhole. The intercept indicates that there are high grade zones within the
Pre-Exis.ng Vested Rights
breccia pipe that may be suitable to underground mining
During the March quarter, the Company announced that it has received approval from San Bernardino
Pre-Exis.ng Vested Rights
County, California, for the Company’s applica4on to officially cer4fy pre-exis4ng vested rights to access
and extract mineral resources at the Colosseum mine, and that the final step required to formalise the
During the March quarter, the Company announced that it has received approval from San Bernardino
approval has been completed.
County, California, for the Company’s applica4on to officially cer4fy pre-exis4ng vested rights to access
and extract mineral resources at the Colosseum mine, and that the final step required to formalise the
A review of the land use records noted that historic mining use was customarily and lawfully recognized
approval has been completed.
and a permibed use by right. As such, mineral resource development and related ac4vi4es within the
scope of the vested right shall not require a County Use Permit.
A review of the land use records noted that historic mining use was customarily and lawfully recognized
and a permibed use by right. As such, mineral resource development and related ac4vi4es within the
Rare Earths
scope of the vested right shall not require a County Use Permit.
At the start of the repor,ng period, the Company announced the findings of inves,ga,ons by
Rare Earths
two US rare earth specialists, Anthony Mariano Jr. and Anthony N. Mariano, PhD., who had
visited the Colosseum Project mul,ple ,mes looking at the rare earth poten,al of the project1.
At the start of the repor,ng period, the Company announced the findings of inves,ga,ons by
Dr Mariano has previously inves,gated Mountain Pass and the surrounding region.
two US rare earth specialists, Anthony Mariano Jr. and Anthony N. Mariano, PhD., who had
visited the Colosseum Project mul,ple ,mes looking at the rare earth poten,al of the project1.
Dr Mariano has previously inves,gated Mountain Pass and the surrounding region.
1 ASX Announcement 14 April 2022 – REE Advisors appointed to Colosseum Project
1 ASX Announcement 14 April 2022 – REE Advisors appointed to Colosseum Project
3
DATELINE RESOURCES
Review of Operations
Eighteen samples collected by the REE experts were sent for analysis for rare earth elements,
with 13 of the 15 fenite samples returning anomalous rare earth content. The highest TREO
reading was 0.391% (3,910ppm) TREO from a fenite sample number T-817M.
This is significant because these anomalous levels of REE in the fenites (indicator rocks) shows
that there are abundant REE’s in the system that feni,sed these rocks. Also of note are the
anomalous levels of the barium and stron,um for most of the samples analysed.
Barium and stron,um are oXen seen as indicator elements for a carbona,,c system. Both
these elements are highly anomalous in rocks of the Mountain Pass deposit.
A gravity survey iden,fied several REE drill targets that are located alongside mapped and
sampled REE-bearing fenite dykes, and at the contact point between the sediments on the
western side of the claim boundary and the granites on the eastern side.
ARGOS STRONTIUM PROJECT
Post the end of the repor4ng period, the Company executed a binding term sheet with Western
Stron4um to acquire an 80% interest in the Argos Stron4um Project located approximately 100
kilometres from its flagship Colosseum Gold and Rare Earths project in San Bernardino California.
Ferrite permanent magnets that use Stron4um have recently been increasingly viewed as a possible
low-cost replacement for Neodymium-based permanent magnets in electric vehicle motors3,4,7.
Dateline is specifically interested in stron4um’s applica4on in the future of permanent magnets for EV
car manufacture, in par4cular where carmakers are looking to meet increased EV demand with lower
cost op4ons that are suitable for mass-market deployment.
Stron4um was discovered at Cady Mountains in the early 1900’s, with first recorded produc4on from
the area from 1916-1918. Mining con4nued through to 1959 with the largest produc4on from the
Rowe-Buehler Mining Company on an area owned by the DuPont company and known as the Argos
Zone5.
At present there is no opera4ng stron4um mine or stron4um carbonate produc4on facility in the
USA1,2. The Argos deposit is comprised of four patented mining claims that cover 75 acres and is
considered to be the largest stron4um deposit in the USA5.
Figure 1: Google Earth image overlaid with geology map and a gravity survey map at 100 metres below the surface
Drilling and Future Plans
Drillholes are planned to con4nue targe4ng extensions to the gold mineral resource in the second half
of 2023, with rare earth targets also planned to be assessed.
4
Figure 1: Google Earth view showing the four patented mining claims that make up the Argos
Strontium Project
The Argos deposit exhibits stron,um mineralisa,on primarily in the form of celes,te, a
lustrous mineral with a silvery-grey appearance.
ANNUAL REPORT 2023
Review of Operations
ARGOS STRONTIUM PROJECT
Post the end of the repor4ng period, the Company executed a binding term sheet with Western
Stron4um to acquire an 80% interest in the Argos Stron4um Project located approximately 100
kilometres from its flagship Colosseum Gold and Rare Earths project in San Bernardino California.
Ferrite permanent magnets that use Stron4um have recently been increasingly viewed as a possible
low-cost replacement for Neodymium-based permanent magnets in electric vehicle motors3,4,7.
Dateline is specifically interested in stron4um’s applica4on in the future of permanent magnets for EV
car manufacture, in par4cular where carmakers are looking to meet increased EV demand with lower
cost op4ons that are suitable for mass-market deployment.
Stron4um was discovered at Cady Mountains in the early 1900’s, with first recorded produc4on from
the area from 1916-1918. Mining con4nued through to 1959 with the largest produc4on from the
Rowe-Buehler Mining Company on an area owned by the DuPont company and known as the Argos
Zone5.
At present there is no opera4ng stron4um mine or stron4um carbonate produc4on facility in the
USA1,2. The Argos deposit is comprised of four patented mining claims that cover 75 acres and is
considered to be the largest stron4um deposit in the USA5.
Figure 1: Google Earth view showing the four patented mining claims that make up the Argos
Strontium Project
The Argos deposit exhibits stron,um mineralisa,on primarily in the form of celes,te, a
lustrous mineral with a silvery-grey appearance.
5
DATELINE RESOURCES
Figures 4 & 5: Argos Trench, looking west and historical celes.te workings (Source Gregg
Wilkerson, April 2021)5
GOLD LINKS GOLD MINE
Due to delays in commissioning the new ball mill, in December the Company made the decision to
move the mine into care and maintenance. The Company ini4ated discussions with various par4es
with regards to partnerships and/or joint ventures. The aim of the discussions was to iden4fy par4es
with opera4onal experience, financial resources and ideally addi4onal gold resources to build Gold
Links into a medium-term viable opera4on.
During the June quarter, the Company entered into an agreement to sell the Gold Links and Lucky
Strike mill to MW Sorter LLC (MW). Previously, the Company had announced a planned toll treatment
and joint venture with MW, however the sale structure was a simpler outcome, reducing Dateline’s
ongoing liabili4es and allowing the Company to focus on its Californian explora4on program.
Under the sale agreement, Dateline is to receive up to A$12 million in cash payments and the nova4on
of A$17.75 million in liabili4es to the seller. The US investors acquired a 5% interest in Dateline via take
up of the rights issue shorkall.
Cash Considera-on
1.
2.
3.
4.
5.
1.
2.
3.
4.
2.
1.
3.
US$325k (A$500k) cash payments received prior to announcement.
US$500k (A$770k) (received) on August 7, 2023
US$500k (A$770k) on October 6, 2023
US$500k (A$770k) on December 5, 2023
US$450k (A$690k) on February 3, 2024
Performance Payments
mill.
US$2 million (A$3.08m) cash upon the production of the first ounce of gold at the Lucky Strike
US$500k (A$770k) cash upon the production of 500 ounces of gold in a continuous seven (7)
day period at the Lucky Strike mill.
US$1 million (A$1.54m) cash upon the production of 2,000 ounces of gold in a continuous
seven (30) day period at Lucky Strike mill.
US$2 million (A$3.08m) cash upon the production of 32,000 ounces of gold in a continuous
twelve (12) month period at the Lucky Strike mill.
Nova-on of Liabili-es
repay that debt.
1.
Bank liabilities of approximately US$9.6 million (A$14.77m) will remain with the USA
subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or
Approximately US$2.2 million (A$3.4m) in trade creditors and equipment lease liabilities will
remain with the USA subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further
obligations to service or repay those amounts.
Bank liabilities of approximately US$9.6 million (A$14.77m) will remain with the USA
subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or
Dateline will have no ongoing obligations for any environmental or other commitments
repay that debt.
2.
The sale of Gold Links and associated infrastructure allows the Company to focus its efforts on its
Approximately US$2.2 million (A$3.4m) in trade creditors and equipment lease liabilities will
exci4ng gold, rare earth and stron4um prospects in California.
remain with the USA subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further
obligations to service or repay those amounts.
3.
Dateline will have no ongoing obligations for any environmental or other commitments
The sale of Gold Links and associated infrastructure allows the Company to focus its efforts on its
exci4ng gold, rare earth and stron4um prospects in California.
Review of Operations
Figures 4 & 5: Argos Trench, looking west and historical celes.te workings (Source Gregg
Wilkerson, April 2021)5
GOLD LINKS GOLD MINE
Due to delays in commissioning the new ball mill, in December the Company made the decision to
move the mine into care and maintenance. The Company ini4ated discussions with various par4es
with regards to partnerships and/or joint ventures. The aim of the discussions was to iden4fy par4es
with opera4onal experience, financial resources and ideally addi4onal gold resources to build Gold
Links into a medium-term viable opera4on.
During the June quarter, the Company entered into an agreement to sell the Gold Links and Lucky
Strike mill to MW Sorter LLC (MW). Previously, the Company had announced a planned toll treatment
and joint venture with MW, however the sale structure was a simpler outcome, reducing Dateline’s
ongoing liabili4es and allowing the Company to focus on its Californian explora4on program.
Under the sale agreement, Dateline is to receive up to A$12 million in cash payments and the nova4on
of A$17.75 million in liabili4es to the seller. The US investors acquired a 5% interest in Dateline via take
up of the rights issue shorkall.
Cash Considera-on
1.
2.
3.
4.
5.
US$325k (A$500k) cash payments received prior to announcement.
US$500k (A$770k) (received) on August 7, 2023
US$500k (A$770k) on October 6, 2023
US$500k (A$770k) on December 5, 2023
US$450k (A$690k) on February 3, 2024
Performance Payments
1.
2.
3.
4.
US$2 million (A$3.08m) cash upon the production of the first ounce of gold at the Lucky Strike
mill.
US$500k (A$770k) cash upon the production of 500 ounces of gold in a continuous seven (7)
day period at the Lucky Strike mill.
US$1 million (A$1.54m) cash upon the production of 2,000 ounces of gold in a continuous
seven (30) day period at Lucky Strike mill.
US$2 million (A$3.08m) cash upon the production of 32,000 ounces of gold in a continuous
twelve (12) month period at the Lucky Strike mill.
Nova-on of Liabili-es
6
ANNUAL REPORT 2023
Figures 4 & 5: Argos Trench, looking west and historical celes.te workings (Source Gregg
Wilkerson, April 2021)5
GOLD LINKS GOLD MINE
Due to delays in commissioning the new ball mill, in December the Company made the decision to
move the mine into care and maintenance. The Company ini4ated discussions with various par4es
with regards to partnerships and/or joint ventures. The aim of the discussions was to iden4fy par4es
with opera4onal experience, financial resources and ideally addi4onal gold resources to build Gold
Links into a medium-term viable opera4on.
During the June quarter, the Company entered into an agreement to sell the Gold Links and Lucky
Strike mill to MW Sorter LLC (MW). Previously, the Company had announced a planned toll treatment
and joint venture with MW, however the sale structure was a simpler outcome, reducing Dateline’s
ongoing liabili4es and allowing the Company to focus on its Californian explora4on program.
Under the sale agreement, Dateline is to receive up to A$12 million in cash payments and the nova4on
of A$17.75 million in liabili4es to the seller. The US investors acquired a 5% interest in Dateline via take
up of the rights issue shorkall.
Cash Considera-on
US$325k (A$500k) cash payments received prior to announcement.
US$500k (A$770k) (received) on August 7, 2023
US$500k (A$770k) on October 6, 2023
US$500k (A$770k) on December 5, 2023
US$450k (A$690k) on February 3, 2024
Performance Payments
1.
2.
3.
4.
5.
1.
2.
US$2 million (A$3.08m) cash upon the production of the first ounce of gold at the Lucky Strike
mill.
US$500k (A$770k) cash upon the production of 500 ounces of gold in a continuous seven (7)
day period at the Lucky Strike mill.
3.
Review of Operations
US$1 million (A$1.54m) cash upon the production of 2,000 ounces of gold in a continuous
seven (30) day period at Lucky Strike mill.
4.
US$2 million (A$3.08m) cash upon the production of 32,000 ounces of gold in a continuous
twelve (12) month period at the Lucky Strike mill.
Nova-on of Liabili-es
1.
2.
1.
3.
Bank liabilities of approximately US$9.6 million (A$14.77m) will remain with the USA
subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or
repay that debt.
Approximately US$2.2 million (A$3.4m) in trade creditors and equipment lease liabilities will
remain with the USA subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further
obligations to service or repay those amounts.
Bank liabilities of approximately US$9.6 million (A$14.77m) will remain with the USA
subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or
Dateline will have no ongoing obligations for any environmental or other commitments
repay that debt.
The sale of Gold Links and associated infrastructure allows the Company to focus its efforts on its
2.
Approximately US$2.2 million (A$3.4m) in trade creditors and equipment lease liabilities will
exci4ng gold, rare earth and stron4um prospects in California.
remain with the USA subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further
obligations to service or repay those amounts.
3.
Dateline will have no ongoing obligations for any environmental or other commitments
The sale of Gold Links and associated infrastructure allows the Company to focus its efforts on its
exci4ng gold, rare earth and stron4um prospects in California.
7
DATELINE RESOURCES
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
The Directors submit their report on the consolidated entity (“the Group”), which consists of Dateline
Resources Limited (the “Company” or “Dateline”) and the entities it controlled during the financial year
ended 30 June 2023.
1.
INFORMATION ON DIRECTORS
The names and details of the Group’s Directors in office during the financial year and until the date of this
report are as follows. Directors were in office for the entire year unless otherwise stated.
Mr Mark Johnson AO
Non-Executive Chairman (Appointed 22 April 2013)
LLB MBA (Harvard)
Mr Johnson has worked in banking and corporate finance for more than forty years. He retired as Deputy
Chairman of Macquarie Bank in mid-2007 and now divides his time between work in the private and public
sectors.
Mr Johnson is a senior adviser to Gresham Partners, and from 2002 to 2013 one of the three Australian
members of the APEC Business Advisory Council (ABAC).
During the past three years, Mr Johnson held the following directorships in other ASX listed companies: NIL
Stephen Baghdadi
Managing Director and CEO (Appointed 3 July 2014)
Since 1993 Mr. Baghdadi has acted as an executive director for numerous ASX listed companies including the
Horizon group of companies, Afro-West, Alamain Investments, Marino as well as privately held controlling
interests in manufacturing, software development and property concerns. Mr. Baghdadi has completed
several transactions in Australia, South East Asia, Europe and North America and brings to the table the ability
to identify an undervalued asset or opportunity that has the potential to yield high returns
During the past three years, Mr Baghdadi held the following directorships in other ASX listed companies: NIL
Mr Gregory Hall
Non-Executive Director (Appointed 19 January 2015)
B. Applied Geology (1st Class Honours)
Mr Hall is an exploration geologist with over 50 years of international experience. From 1988-2006, he was
employed by the Placer Dome group of companies, serving as Chief Geologist -World Wide during the last
five years he was there.
Placer Dome was later acquired by Barrick Gold Corporation in early 2006.
Over the course of his career, Mr. Hall had a senior role in the discoveries of both Gold Field's Granny Smith
mine and Rio Tinto's Yandi iron ore mine. In addition, he took part in the discoveries of Keringal and Wallaby
gold mines in Australia's Eastern Goldfields, as well as the definition of AngloGold Ashanti's Sunrise gold
mine.
During the past three years, Mr Hall held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Greater Boulder Resources Limited (current);
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Mr Anthony Ferguson
Non-Executive Director (Appointed 29 August 2019)
MBA (Dist), B.Sc, B.E (Hons)
Mr Ferguson is an investor, entrepreneur and an investment banker.
The majority of Mr. Ferguson’s career was with Macquarie Group where he established and led the natural
resources team that advised on many major transactions in the mining industry. He established Macquarie’s
presence in Canada, headed Macquarie’s Asian investment banking operations, established and led the Asia
Resources Fund. Mr. Ferguson’s career included three years as Managing Director and Head of Investment
Banking at Rothschild Australia and a Global Partner of Rothschild Investment Bank.
Before commencing his investment banking career Tony practiced as an engineer and worked at Rio Tinto’s
Woodlawn Mine.
During the past three years, Mr Ferguson held the following directorships in other ASX listed companies: NIL
Mr Francis William Lannen
Non-Executive Director (Appointed 15 January 2021)
B.E (Mining)(Hons)
Mr Lannen is a Mining Engineer with a Bachelor of Engineering (Mining) Honours, from the University of
Sydney and holds statutory qualifications as a Mine Manager of underground and open pit mines in both
NSW and Tasmania.
Mr. Lannen’s early career was with Aberfoyle Ltd where he worked in both technical and operating rolls at
Cleveland Tin, Ardlethan Tin and the Melbourne head office. His last project was to take the Hellyer base
metal mine in Tasmania from feasibility to full production as the mine manager.
In 1990, Mr. Lannen started Mancala Pty Ltd, a specialist mining contractor and mine engineering group and
managed Mancala’s operations for over 25 years. As a mine contractor, Mancala has successfully completed
projects in both metalliferous and coal in Australia and offshore. Projects have included whole of mine
contracts in open pit and underground as well as specialist contracts in the development and recovery of
shafts. Several key projects involved mechanized mining of narrow vein deposits.
During the past three years, Mr Lannen held the following directorships in other ASX listed companies: NIL
2.
INFORMATION ON COMPANY SECRETARY
Mr John Smith
(Appointed 5 October 2022)
B. Com, MBA, FCPA
Mr Smith is a Certified Practicing Accountant with over 40 years’ experience as CFO and Company Secretary
of ASX listed and unlisted companies.
Mr Mark Ohlsson
(Appointed 1 November 2021 – resigned 5 October 2022)
FCPA, Registered Tax Agent
Mr Ohlsson has been a Company Secretary or Director of a number of ASX-listed companies and his experience
spans a wide range of industries. He has been involved in business management and venture capital for over
40 years.
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ANNUAL REPORT 2023 Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Mr Anthony Ferguson
Non-Executive Director (Appointed 29 August 2019)
MBA (Dist), B.Sc, B.E (Hons)
Mr Ferguson is an investor, entrepreneur and an investment banker.
The majority of Mr. Ferguson’s career was with Macquarie Group where he established and led the natural
resources team that advised on many major transactions in the mining industry. He established Macquarie’s
presence in Canada, headed Macquarie’s Asian investment banking operations, established and led the Asia
Resources Fund. Mr. Ferguson’s career included three years as Managing Director and Head of Investment
Banking at Rothschild Australia and a Global Partner of Rothschild Investment Bank.
Before commencing his investment banking career Tony practiced as an engineer and worked at Rio Tinto’s
Woodlawn Mine.
During the past three years, Mr Ferguson held the following directorships in other ASX listed companies: NIL
Mr Francis William Lannen
Non-Executive Director (Appointed 15 January 2021)
B.E (Mining)(Hons)
Mr Lannen is a Mining Engineer with a Bachelor of Engineering (Mining) Honours, from the University of
Sydney and holds statutory qualifications as a Mine Manager of underground and open pit mines in both
NSW and Tasmania.
Mr. Lannen’s early career was with Aberfoyle Ltd where he worked in both technical and operating rolls at
Cleveland Tin, Ardlethan Tin and the Melbourne head office. His last project was to take the Hellyer base
metal mine in Tasmania from feasibility to full production as the mine manager.
In 1990, Mr. Lannen started Mancala Pty Ltd, a specialist mining contractor and mine engineering group and
managed Mancala’s operations for over 25 years. As a mine contractor, Mancala has successfully completed
projects in both metalliferous and coal in Australia and offshore. Projects have included whole of mine
contracts in open pit and underground as well as specialist contracts in the development and recovery of
shafts. Several key projects involved mechanized mining of narrow vein deposits.
During the past three years, Mr Lannen held the following directorships in other ASX listed companies: NIL
2.
INFORMATION ON COMPANY SECRETARY
Mr John Smith
(Appointed 5 October 2022)
B. Com, MBA, FCPA
Mr Smith is a Certified Practicing Accountant with over 40 years’ experience as CFO and Company Secretary
of ASX listed and unlisted companies.
Mr Mark Ohlsson
(Appointed 1 November 2021 – resigned 5 October 2022)
FCPA, Registered Tax Agent
Mr Ohlsson has been a Company Secretary or Director of a number of ASX-listed companies and his experience
spans a wide range of industries. He has been involved in business management and venture capital for over
40 years.
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DATELINE RESOURCES Directors’ Report DATELINE RESOURCES LIMITED
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
DIRECTORS’ SHAREHOLDINGS
3.
3.
DIRECTORS’ SHAREHOLDINGS
The following table sets out each current Director’s relevant interest in shares and rights or options to acquire
The following table sets out each current Director’s relevant interest in shares and rights or options to acquire
shares of the Company as at the date of this report.
shares of the Company as at the date of this report.
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
7.
FINANCIAL REVIEW
Directors
Directors
Mark Johnson
Mark Johnson
Stephen Baghdadi
Stephen Baghdadi
Gregory Hall
Gregory Hall
Tony Ferguson
Tony Ferguson
Bill Lannen
Bill Lannen
4.
4.
DIRECTORS’ MEETINGS
DIRECTORS’ MEETINGS
Directors
Directors
Mark Johnson
Mark Johnson
Stephen Baghdadi
Stephen Baghdadi
Gregory Hall
Gregory Hall
Tony Ferguson
Tony Ferguson
Bill Lannen
Bill Lannen
Fully Paid
Fully Paid
Ordinary
Ordinary
Shares
Shares
121,629,633
121,629,633
46,894,119
46,894,119
4,349,995
4,349,995
21,378,333
21,378,333
4,713,023
4,713,023
198,965,103
198,965,103
Unlisted
Unlisted
Share
Share
Options
Options
4,926,046
4,926,046
4,926,046
4,926,046
4,926,046
4,926,046
4,926,046
4,926,046
-
-
19,704,184
19,704,184
Number
Number
Eligible to
Eligible to
Attend
Attend
9
9
9
9
9
9
9
9
9
9
Number
Number
Attended
Attended
9
9
9
9
9
9
9
9
9
9
Functions normally assigned to an Audit Committee and Remuneration Committee are undertaken by the
Functions normally assigned to an Audit Committee and Remuneration Committee are undertaken by the
full Board.
full Board.
DIVIDENDS
DIVIDENDS
5.
5.
No dividend has been paid during the financial year and no dividend is recommended for the financial year.
No dividend has been paid during the financial year and no dividend is recommended for the financial year.
PRINCIPAL ACTIVITIES
PRINCIPAL ACTIVITIES
6.
6.
Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on mining and
Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on mining and
exploration in North America. The Company owns 100% of the Colosseum Gold-REE Project in California.
exploration in North America. The Company owns 100% of the Colosseum Gold-REE Project in California.
The Colosseum Mine is located in the Walker Lane Trend in East San Bernardino County, California. On
The Colosseum Mine is located in the Walker Lane Trend in East San Bernardino County, California. On
July 6, 2022, the Company announced to the ASX that the Colosseum Gold mine has a JORC-2012
July 6, 2022, the Company announced to the ASX that the Colosseum Gold mine has a JORC-2012
compliant Mineral Resource estimate of 20.9Mt @ 1.2g/t Au for 813,000oz. Of the total Mineral Resource,
compliant Mineral Resource estimate of 20.9Mt @ 1.2g/t Au for 813,000oz. Of the total Mineral Resource,
258koz @1.2g/t Au (32%) are classified as Measured, 322koz @1.2g/t Au (39%) as Indicated and 235koz
258koz @1.2g/t Au (32%) are classified as Measured, 322koz @1.2g/t Au (39%) as Indicated and 235koz
@1.3g/t Au (29%) as Inferred.
@1.3g/t Au (29%) as Inferred.
The Colosseum is located less than 10km north of the Mountain Rare Earth mine. Work has commenced on
The Colosseum is located less than 10km north of the Mountain Rare Earth mine. Work has commenced on
identifying the source of the mantle derived rocks that are associated with carbonatites and are located at
identifying the source of the mantle derived rocks that are associated with carbonatites and are located at
Colosseum. A comprehensive mapping, sampling and gravity survey has located several REE targets that are
Colosseum. A comprehensive mapping, sampling and gravity survey has located several REE targets that are
ready to be drill tested.
ready to be drill tested.
Dateline has recently executed a binding term sheet for the acquisition of an 80% interest in the Argos
Dateline has recently executed a binding term sheet for the acquisition of an 80% interest in the Argos
Strontium project and is moving towards concluding formal due diligence and finalizing of legal documentation.
Strontium project and is moving towards concluding formal due diligence and finalizing of legal documentation.
10
(a)
Financial Performance & Financial Position
The financial results of the Group for the year ended 30 June 2023 and 2022 are:
Cash & Cash equivalents ($)
928,940
1,936,037
30-Jun-23
30-Jun-22
% Change
Net Assets ($)
Revenue ($)
Profit/(Loss) per Share (Cents)
Dividend ($)
11,063,873
10,588,842
858,199
(1.88)
-
-
-
(3.29)
Net Profit (Loss) After Tax ($)
(11,123,199)
(13,904,468)
-52.0%
4.5%
20.0%
43.0%
-
-
(b)
Business Strategies and Prospects for future financial years
The Group actively evaluates the prospects of each project as results from each program become available,
these results are available via the ASX platform for shareholders information. The Group then assesses the
continued exploration expenditure and further asset development. The Group will continue the evaluation
and development of its existing mineral projects.
There are specific risks associated with the activities of the Group and general risks which are largely beyond
the control of the Group and the Directors. The risks identified below, or other risk factors, may have a
material impact on the future financial performance of the Group and the market price of the Company’s
shares.
(i) Operating Risks
The operations of the Group may be affected by various factors, including failure to locate or identify mineral
deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties
encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure
or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse
weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
(ii) Permitting and Regulatory Risks
Mineral exploration and commercialization activities are subject to diverse regulatory and permitting
frameworks across different jurisdictions. These frameworks introduce potential risks, as regulatory changes,
permitting delays, or non-compliance can impact project timelines and viability.
(iii) Environmental Risks
The operations and proposed activities of the Group are subject to the laws and regulations of Australia, the
USA and the Republic of Fiji concerning the environment. As with most exploration projects and mining
operations, the Group’s activities are expected to have an impact on the environment, particularly if
advanced exploration or mine development proceeds. It is the Group’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
(iv) Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and production activities, as well as on its
ability to fund those activities.
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ANNUAL REPORT 2023 Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
7.
FINANCIAL REVIEW
(a)
Financial Performance & Financial Position
The financial results of the Group for the year ended 30 June 2023 and 2022 are:
Cash & Cash equivalents ($)
Net Assets ($)
Revenue ($)
Net Profit (Loss) After Tax ($)
Profit/(Loss) per Share (Cents)
Dividend ($)
30-Jun-23
30-Jun-22
928,940
11,063,873
858,199
(11,123,199)
(1.88)
-
1,936,037
10,588,842
-
(13,904,468)
(3.29)
-
% Change
-52.0%
4.5%
-
20.0%
43.0%
-
(b)
Business Strategies and Prospects for future financial years
The Group actively evaluates the prospects of each project as results from each program become available,
these results are available via the ASX platform for shareholders information. The Group then assesses the
continued exploration expenditure and further asset development. The Group will continue the evaluation
and development of its existing mineral projects.
There are specific risks associated with the activities of the Group and general risks which are largely beyond
the control of the Group and the Directors. The risks identified below, or other risk factors, may have a
material impact on the future financial performance of the Group and the market price of the Company’s
shares.
(i) Operating Risks
The operations of the Group may be affected by various factors, including failure to locate or identify mineral
deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties
encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure
or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse
weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
(ii) Permitting and Regulatory Risks
Mineral exploration and commercialization activities are subject to diverse regulatory and permitting
frameworks across different jurisdictions. These frameworks introduce potential risks, as regulatory changes,
permitting delays, or non-compliance can impact project timelines and viability.
(iii) Environmental Risks
The operations and proposed activities of the Group are subject to the laws and regulations of Australia, the
USA and the Republic of Fiji concerning the environment. As with most exploration projects and mining
operations, the Group’s activities are expected to have an impact on the environment, particularly if
advanced exploration or mine development proceeds. It is the Group’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
(iv) Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and production activities, as well as on its
ability to fund those activities.
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DATELINE RESOURCES Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
(v) Market conditions
general economic outlook;
introduction of tax reform or other new legislation;
interest rates and inflation rates;
Share market conditions may affect the value of the Company’s quoted securities regardless of the
Company’s operating performance. Share market conditions are affected by many factors such as:
i.
ii.
iii.
iv. Commodity prices;
v.
vi.
vii.
changes in investor sentiment toward particular market sectors;
the demand for, and supply of, capital; and
terrorism or other hostilities.
The market price of securities can fall as well as rise and may be subject to varied and unpredictable
influences on the market for equities in general and resource exploration stocks in particular. Neither the
Company nor the Directors warrant the future performance of the Company or any return on an investment
in the Company.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
8.
On 13 June 2023, the Company announced that it had executed a binding agreement with MW Sorter LLC for
the sale of Gunnison Gold Pty Ltd, the entity that owns all of the Colorado assets including the Gold Links and
Lucky Strike mill. Consideration for the sale will be paid in accordance with the details below and transfer of
ownership will take place after regulatory approval has been obtained. The transaction values and payment
schedules are listed below and are not affected by the timing of any regulatory approval process.
Cash Consideration
• US$325,000 (A$500,000) cash payments received to date.
• US$500,000 (A$770,000) on August 7, 2023
• US$500,000 (A$770,000) on October 6, 2023
• US$500,000 (A$770,000) on December 5, 2023
• US$450,000 (A$690,000) on February 3, 2024
Performance Payments
•
•
US$2 million (A$3.08m) cash upon the production of the first ounce of gold at the Lucky Strike mill.
US$500k (A$770k) cash upon the production of 500 ounces of gold in a continuous seven (7) day period at
the Lucky Strike mill.
US$1 million (A$1.54m) cash upon the production of 2,000 ounces of gold in a continuous seven (30) day
period at Lucky Strike mill.
US$2 million (A$3.08m) cash upon the production of 32,000 ounces of gold in a continuous twelve (12)
month period at the Lucky Strike mill.
•
•
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
9. AFTER BALANCE SHEET DATE EVENTS
On 5 July 2023, the Company announced that it had executed a binding term sheet with Western Strontium to
acquire an 80% interest in the Argos Strontium Project located approximately 100 kilometers from its flagship
Colosseum Gold and Rare Earths project in San Bernardino, California, USA.
Acquisition Terms
Dateline and Western Strontium have agreed to establish a new entity (Newco) to hold the four patented
claims that comprise the Argos Strontium Project. The consideration payable to Western Strontium for
the 80% interest that Dateline will own in Newco is as follows:
Five million ordinary shares in Dateline Resources Limited
Ten million, three year unquoted options, allowing Western Strontium to purchase ordinary shares
The above shares and options will be made available from Dateline’s existing share capacity under Listing
Shares & Options
•
•
at 3 cents per share.
Rule 7.1
Cash Payments
• USD $100,000 payable 90 days from date of completion (First Payment Date);
• USD $150,000 on the date that is six months from the First Payment Date;
• USD $150,000 on the date that is 12 months from the First Payment Date;
• USD $150,000 on the date that is 18 months from the First Payment Date.
Western Strontium will maintain a 20% carried interest in the project via its 20% shareholding of Newco.
On 11 August 2023 the Company announced the issue of 28,571,428 fully paid ordinary shares raising
$600,000 (before costs) at $0.021 per new share and 5,714,286 accompanying unquoted options with an exercise
price of $0.03 with an expiry of 9 August 2026.
No other matter or event has arisen since 30 June 2023 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise disclosed in the Group’s
financial report.
10. ENVIRONMENTAL ISSUES
The Group needs to comply with environmental regulations at the sites where it has exploration activities.
The Board is not aware of any breach of environmental requirements as they apply to the Group.
Novation of Liabilities
•
Bank liabilities of approximately US$9.6 million (A$14.77m) will remain with the USA subsidiaries of
Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or repay that debt.
Approximately US$2.2 million (A$3.4m) in trade creditors and equipment lease liabilities will remain with
the USA subsidiaries of Gunnison Gold Pty Ltd. Dateline will have no further obligations to service or repay
those amounts.
Dateline will have no ongoing obligations for any environmental or other commitments.
•
•
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ANNUAL REPORT 2023 Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
9. AFTER BALANCE SHEET DATE EVENTS
On 5 July 2023, the Company announced that it had executed a binding term sheet with Western Strontium to
acquire an 80% interest in the Argos Strontium Project located approximately 100 kilometers from its flagship
Colosseum Gold and Rare Earths project in San Bernardino, California, USA.
Acquisition Terms
Dateline and Western Strontium have agreed to establish a new entity (Newco) to hold the four patented
claims that comprise the Argos Strontium Project. The consideration payable to Western Strontium for
the 80% interest that Dateline will own in Newco is as follows:
Shares & Options
•
•
Five million ordinary shares in Dateline Resources Limited
Ten million, three year unquoted options, allowing Western Strontium to purchase ordinary shares
at 3 cents per share.
The above shares and options will be made available from Dateline’s existing share capacity under Listing
Rule 7.1
Cash Payments
• USD $100,000 payable 90 days from date of completion (First Payment Date);
• USD $150,000 on the date that is six months from the First Payment Date;
• USD $150,000 on the date that is 12 months from the First Payment Date;
• USD $150,000 on the date that is 18 months from the First Payment Date.
Western Strontium will maintain a 20% carried interest in the project via its 20% shareholding of Newco.
On 11 August 2023 the Company announced the issue of 28,571,428 fully paid ordinary shares raising
$600,000 (before costs) at $0.021 per new share and 5,714,286 accompanying unquoted options with an exercise
price of $0.03 with an expiry of 9 August 2026.
No other matter or event has arisen since 30 June 2023 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise disclosed in the Group’s
financial report.
10. ENVIRONMENTAL ISSUES
The Group needs to comply with environmental regulations at the sites where it has exploration activities.
The Board is not aware of any breach of environmental requirements as they apply to the Group.
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DATELINE RESOURCES Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
11. REMUNERATION REPORT (Audited)
The Board of Dateline Resources Limited is responsible for determining and reviewing the remuneration of
the Directors of the Company, within parameters approved by shareholders. No performance hurdles have
been imposed so far, due to the size of the Group and the structure of the remuneration in respect of the non-
executive Directors. Remuneration is not related to the company’s financial performance. Accounting and
administration services were provided by consultants at reasonable commercial rates.
The Company's Key Management Personnel comprise all of the Directors.
Company Secretarial services were provided by Mr. J Smith and Mr. M Ohlsson.
Remuneration of executives and consultants, whenever appointed, is determined by market conditions and is
not linked to the Group’s performance. There are no service agreements in place relating to Directors' fees
paid.
No equity based payments or other benefits were paid to Directors or consultants during the year under
review; no shares or options were issued by way of remuneration.
Directors
Position
Duration of Appointment
Mark Johnson
Non-Executive Chairman
Appointed 22 April 2013
Stephen Baghdadi
Managing Director
Appointed 4 July 2014
Gregory Hall
Non-Executive Director
Appointed 19 January 2015
Tony Ferguson
Non-Executive Director
Appointed 29 August 2019
Bill Lannen
Non-Executive Director
Appointed 15 January 2021
Details of remuneration of the KMP of Dateline Resources Limited are shown below:
Mr Johnson
Mr Johnson
Mr Baghdadi
Mr Baghdadi
Mr Hall
Mr Hall
Mr Ferguson
Mr Ferguson
Mr Lannen
Mr Lannen
Position
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Total
2023
2022
$45,000
-
-
$480,000
$45,000
-
$45,000
-
$45,000
-
$660,000
-
-
-
$480,000
-
-
-
-
-
-
$480,000
It should be noted that the $45,000 paid to each non-executive director in the year ended 30 June 2023, was
via the issuance of shares and not a cash payment.
Dateline Resources Limited, as an ASX listed company, has produced the Remuneration Report in
accordance with Section 300A of the Corporations Act 2001.
Key management personnel holdings
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DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
(i) UNLISTED OPTIONS OF KMP'S
Details of unlisted options held directly, indirectly or beneficially by key management personnel and their
related parties at any time during the financial year ended 30 June 2023 are set out below. There were no
unlisted options issued or held by key management personnel in the year ended 30 June 2023.
Company Directors
and Related Parties
Opening
Balance
Received as
Exercise
Net Change
Remuneration
of Options
Other
Closing
Balance
500,000-
500,000-
5,426,046
4,926,046
4,926,046
5,426,046
1,000,000-
20,704,184
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
4,926,046
4,926,046
4,926,046
4,926,046
19,704,184
(ii) NON RECOURSE LOANS OF KMP'S
Mr Baghdadi
Mr Lannen
1,132,990
169,949
1,302,939
(iii) SHAREHOLDINGS OF KMP'S
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,984,675
20,815,578
10,117,222
20,619,920
6,386,111
1,111,111
During the 2021 year, there were Non-Recourse Loans issued to 2 Directors (and approved by
shareholders at a General meeting held on 21 May 2021 which under AASB2 are considered to be options.
These amounts are listed below.
Company Directors
and Related Parties
Opening
Balance
Received as
Exercise
Net Change
Remuneration
of Options
Other
Closing
Balance
1,132,990
169,949
1,302,939
Closing
Balance
121,629,633
46,894,119
4,349,995
21,378,333
4,713,023
Closing
Balance
96,394,958
26,078,541
2,099,995
9,011,111
2,463,023
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2023 are set out below.
Company Directors
and Related Parties
Opening
Balance
Received as
Exercise
Net Change
Remuneration
of Options
Other
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2022 are set out below:
Company Directors
and Related Parties
Opening
Balance
Received as
Exercise
Net Change
Remuneration
of Options
Other
53,917,475
198,965,103
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
96,394,958
26,078,541
2,099,995
9,011,111
2,463,023
136,047,628
2,250,000
2,250,000
2,250,000
2,250,000
9,000,000
75,775,038
19,692,430
2,099,995
7,900,000
2,463,023
107,930,486
As the Company is not yet in the production phase, and therefore, not generating revenue, there is no direct
link between performance and shareholder wealth.
9 | P a g e
28,117,142
136,047,628
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ANNUAL REPORT 2023 Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
(i) UNLISTED OPTIONS OF KMP'S
Details of unlisted options held directly, indirectly or beneficially by key management personnel and their
related parties at any time during the financial year ended 30 June 2023 are set out below. There were no
unlisted options issued or held by key management personnel in the year ended 30 June 2023.
Company Directors
and Related Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Opening
Balance
4,926,046
4,926,046
4,926,046
4,926,046
19,704,184
Received as
Remuneration
-
-
-
-
-
Exercise
of Options
-
-
-
-
-
Net Change
Other
500,000-
-
-
500,000-
1,000,000-
Closing
Balance
5,426,046
4,926,046
4,926,046
5,426,046
20,704,184
(ii) NON RECOURSE LOANS OF KMP'S
During the 2021 year, there were Non-Recourse Loans issued to 2 Directors (and approved by
shareholders at a General meeting held on 21 May 2021 which under AASB2 are considered to be options.
These amounts are listed below.
Company Directors
and Related Parties
Mr Baghdadi
Mr Lannen
Opening
Balance
1,132,990
169,949
1,302,939
Received as
Remuneration
-
-
-
Exercise
of Options
-
-
-
Net Change
Other
Closing
Balance
-
-
-
1,132,990
169,949
1,302,939
(iii) SHAREHOLDINGS OF KMP'S
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2023 are set out below.
Company Directors
and Related Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
Opening
Balance
96,394,958
26,078,541
2,099,995
9,011,111
2,463,023
136,047,628
Received as
Remuneration
2,250,000
-
2,250,000
2,250,000
2,250,000
9,000,000
Exercise
of Options
-
-
-
-
-
-
Net Change
Other
22,984,675
20,815,578
-
10,117,222
-
53,917,475
Closing
Balance
121,629,633
46,894,119
4,349,995
21,378,333
4,713,023
198,965,103
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2022 are set out below:
Company Directors
and Related Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
Opening
Balance
75,775,038
19,692,430
2,099,995
7,900,000
2,463,023
107,930,486
Received as
Remuneration
-
-
-
-
-
-
Exercise
of Options
-
-
-
-
-
-
Net Change
Other
20,619,920
6,386,111
-
1,111,111
-
28,117,142
Closing
Balance
96,394,958
26,078,541
2,099,995
9,011,111
2,463,023
136,047,628
As the Company is not yet in the production phase, and therefore, not generating revenue, there is no direct
link between performance and shareholder wealth.
9 | P a g e
15
DATELINE RESOURCES Directors’ Report DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2023
The adoption of the Remuneration Report for the financial year ended 30 June 2022 was put to the
shareholders of the Company at the Annual General Meeting held 29 November 2022. The resolution was
passed by a poll of shareholders without amendment. The Company did not receive any specific feedback at
the AGM or throughout the year on its remuneration practices.
End of remuneration report.
12. OPTIONS
At the date of this report, there were 145,879,184 unlisted options as depicted below:
Number
5,000,000
2,000,000
1,000,000
2,000,000
11,937,500
15,587,500
75,100,000
13,550,000
19,704,184
145,879,184
Exercise Price
$0.1000
$0.2000
$0.1500
$0.1300
$0.1350
$0.1350
$0.0300
$0.0300
$0.0958
Expiry Date
30 Jun 2024
30 Jun 2024
30 Jun 2024
30 Jun 2024
14 Oct 2025
19 Dec 2025
12 May 2026
18 May 2026
11 Dec 2024
19,704,184 options are vesting in 3 equal tranches. The first at a production rate of 30k tonnes p.a. The second
upon proven JORC reserve of 60k tonnes and the third at a production rate of 60k tonnes p.a.
13. PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the
purposes of taking responsibility on behalf of the Group for all or part of those proceedings.
INDEMNIFICATION OF OFFICERS AND AUDITORS
14.
During the financial year no premium was paid to insure Directors against claims while acting as a Director.
No indemnity has been granted to the Auditor of the Company.
15. NON-AUDIT SERVICES
No non-audit services were provided by DFK Laurence Varnay Auditors Pty Ltd to the Group during the financial
year.
16. LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for
page 17.
the financial year ended 30 June 2023 has been received and can be found on page 11.
Signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Mr Mark Johnson
Non-Executive Chairman
28 September 2023
16
10 | P a g e
ANNUAL REPORT 2023 Directors’ Report Auditor’s Independence Declaration
17
Dateline Resources Limited ABN: 63 149 105 653 Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Dateline Resources Limited I declare that, to the best of my knowledge and belief, in relation to the audit for the year ended 30 June 2023, there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Dateline Resources Limited and the entities it controlled during the year. DFK Laurence Varnay Auditors Pty Ltd Faizal Ajmat Director Sydney Dated: 28th day of September 2023 11 DATELINE RESOURCES DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Consolidated Statement of Profit or Loss and
FOR THE YEAR ENDED 30 JUNE 2023
Other Comprehensive Income
For the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Continuing operations
Revenue from operations
Other income
Profit on sale of asset
Debts Forgiven
Unrealised exchange gain/(loss)
Interest expense
Borrowing costs
Employee and contractor costs
Mining and exploration expenses
Depreciation expense
Share based payments expense
Option valuation expense
Administration expenses
Loss from continuing operations before income tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Foreign Currency Translation Reserve
Total comprehensive loss for the period
Profit/(loss) for the year is attributable to:
Owners of the Company
Total comprehensive loss for the year
attributable to:
Owners of the Company
Loss per share from continuing operations
attributable to the ordinary equity holders of the Company:
Basic and diluted loss per share – cents per share
Note
30-Jun-23
$
30-Jun-22
$
5
13
858,199
-
-
7,361,276
(747,998)
169,686
48,561
-
(389,136)
(1,750,954)
(1,503,600)
(39,439)
(138,389)
(5,968,054)
(4,365,653)
(4,925,510)
(2,043,347)
(1,161,562)
-
(189,897)
(896,044)
(316,568)
(346,593)
6
7
(4,559,260)
(4,123,385)
(11,123,199)
(13,904,468)
-
-
(11,123,199)
(13,904,468)
(388,139)
(1,221,719)
(11,511,338)
(15,126,187)
(11,123,199)
(11,123,199)
(13,904,468)
(13,904,468)
(11,511,338)
(11,511,338)
(15,126,187)
(15,126,187)
Current Assets
Cash & cash equivalents
Trade & other receivables
Inventory
Financial assets
Total Current Assets
Non-Current Assets
Plant & equipment land & buildings
Exploration & evaluation expenditure
Financial Assets
Right-of-use assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease liabilities
Total Current Liabilities
Non Current Liabilities
Financial liabilities to related parties
Long term loan
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Note
30-Jun-23
30-Jun-22
$
$
8
9
4
10
11
12
10
19
13
14
15
20
14
15
20
928,940
102,943
1,936,037
36,659
-
1,348,251
1,935,089
2,966,972
661,813
3,982,760
17,890,385
18,114,172
16,243,470
15,465,849
-
1,117,725
231,638
438,796
34,365,493
35,136,542
37,332,465
39,119,302
5,009,693
5,318,474
1,468,167
76,886
9,949,981
3,283,940
947,274
86,185
11,873,220
14,267,380
926,560
848,071
13,263,574
13,008,708
205,238
406,301
14,395,372
14,263,080
26,268,592
28,530,460
11,063,873
10,588,842
Cents
Cents
Equity attributable to the equity holders of the Company
18
(1.88)
(3.19)
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
16(a)
17
58,783,327
46,986,850
335,991
825,631
(48,055,445)
(37,223,639)
11,063,873
10,588,842
This Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in
conjunction with the accompanying notes
18
12 | P a g e
This Consolidated Statement Financial position is to be read in conjunction with the accompanying notes
13 | P a g e
ANNUAL REPORT 2023
DATELINE RESOURCES LIMITED
Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
AS AT 30 JUNE 2023
Current Assets
Cash & cash equivalents
Trade & other receivables
Inventory
Financial assets
Total Current Assets
Non-Current Assets
Plant & equipment land & buildings
Exploration & evaluation expenditure
Financial Assets
Right-of-use assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease liabilities
Total Current Liabilities
Non Current Liabilities
Financial liabilities to related parties
Long term loan
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Note
30-Jun-23
$
30-Jun-22
$
8
9
4
10
11
12
10
19
13
14
15
20
14
15
20
928,940
102,943
1,936,037
36,659
-
1,348,251
1,935,089
2,966,972
661,813
3,982,760
17,890,385
18,114,172
16,243,470
15,465,849
-
1,117,725
231,638
438,796
34,365,493
35,136,542
37,332,465
39,119,302
5,009,693
5,318,474
1,468,167
76,886
9,949,981
3,283,940
947,274
86,185
11,873,220
14,267,380
926,560
848,071
13,263,574
13,008,708
205,238
406,301
14,395,372
14,263,080
26,268,592
28,530,460
11,063,873
10,588,842
Equity attributable to the equity holders of the Company
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
16(a)
17
58,783,327
46,986,850
335,991
825,631
(48,055,445)
(37,223,639)
11,063,873
10,588,842
This Consolidated Statement Financial position is to be read in conjunction with the accompanying notes
19
13 | P a g e
DATELINE RESOURCES
Consolidated Statement of Changes in Equity
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year ended 30 June 2023
FOR THE YEAR ENDED 30 JUNE 2023
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Issued
Capital
Accumulated
Losses
Option
Valuation
Reserve
Share Based
Payments
Reserve
Foreign
Currency
Reserve
TOTAL
$
$
$
$
$
$
Balance as at 1 July, 2022
46,986,850
(37,223,639)
1,137,873
1,680,846 (1,993,088) 10,588,842
Total loss
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners :
Options Expired
Options issued
-
-
-
-
-
Contributions of equity
11,796,477
(11,123,199)
-
(11,123,199)
-
-
-
291,392
(291,392)
-
-
189,892
-
-
-
-
-
-
-
-
(11,123,199)
(388,139)
(388,139)
(388,139) (11,511,338)
-
-
-
-
189,892
11,796,477
Balance as at 30 June, 2023
58,783,327
(48,055,446)
1,036,373
1,680,846 (2,381,227) 11,063,873
Payment for exploration & evaluation expenditure
(777,621)
(6,618,017)
Issued
Capital
Accumulated
Losses
Option
Valuation
Reserve
Share Based
Payments
Reserve
Foreign
Currency
Reserve
$
$
$
$
$
TOTAL
$
Balance as at 1 July, 2021
36,942,050
(23,319,171)
270,161
1,302,939
(646,988) 14,548,991
Total loss
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners :
Options issued
-
-
-
(13,904,468)
-
(13,904,468)
-
-
-
-
-
-
-
(13,904,468)
(1,346,100)
(1,346,100)
(1,346,100) (15,250,568)
867,712
377,907
1,245,619
Contributions of equity
10,044,800
-
-
-
-
10,044,800
Balance as at 30 June, 2022
46,986,850
(37,223,639)
1,137,873
1,680,846 (1,993,088) 10,588,842
Net cash flows used in operating activities
8a
(13,717,198)
(10,941,610)
Cash flows used in operating activities
Payment to suppliers and employees
Revenue from operations
Interest (paid) / received
Cash flows used in investing activities
Payment for property, plant & equipment
Deposits paid
Investment in term deposits
Investment in unrelated companies
Deposits refunded
Proceeds from sale of fixed assets
Net cash flows used in investing activities
Cash flows from financing activities
Advance of related party loans
Proceeds from issue of shares
Transaction costs from the issue of shares
Proceeds from borrowings (net of repayment)
Borrowing costs
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
8
Note
30-Jun-23
30-Jun-22
$
$
(12,828,854)
(10,264,377)
862,610
(1,750,954)
(677,233)
-
-
-
(812,655)
(1,850,758)
-
(1,466,105)
(458)
(437,276)
282,183
-
770,244
48,561
(1,745,827)
(9,116,075)
1,923,131
12,811,230
(1,014,753)
775,759
(39,439)
3,100,000
8,329,508
(759,694)
4,597,386
(365,547)
14,455,928
14,901,653
(1,007,097)
(5,156,032)
1,936,037
928,940
7,092,069
1,936,037
This Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes
20
14 | P a g e
15 | P a g e
This Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes
ANNUAL REPORT 2023
Consolidated Statement of Cash Flows
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year ended 30 June 2023
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows used in operating activities
Payment to suppliers and employees
Revenue from operations
Interest (paid) / received
Note
30-Jun-23
$
30-Jun-22
$
(12,828,854)
(10,264,377)
862,610
-
(1,750,954)
(677,233)
Net cash flows used in operating activities
8a
(13,717,198)
(10,941,610)
Cash flows used in investing activities
Payment for property, plant & equipment
Deposits paid
Investment in term deposits
Investment in unrelated companies
Deposits refunded
Proceeds from sale of fixed assets
(812,655)
(1,850,758)
-
(1,466,105)
(458)
(437,276)
282,183
-
-
-
770,244
48,561
Payment for exploration & evaluation expenditure
(777,621)
(6,618,017)
Net cash flows used in investing activities
Cash flows from financing activities
Advance of related party loans
Proceeds from issue of shares
Transaction costs from the issue of shares
Proceeds from borrowings (net of repayment)
Borrowing costs
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
8
(1,745,827)
(9,116,075)
1,923,131
12,811,230
(1,014,753)
775,759
(39,439)
3,100,000
8,329,508
(759,694)
4,597,386
(365,547)
14,455,928
14,901,653
(1,007,097)
(5,156,032)
1,936,037
928,940
7,092,069
1,936,037
This Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes
21
15 | P a g e
DATELINE RESOURCES
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
1
REPORTING ENTITY
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(ii) Transactions and balances
The financial report includes financial statements for the consolidated entity consisting of Dateline Resources
Limited (the “Company”) and the entities it controlled during the year (“the Group”). The Company is a
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian
Securities Exchange Limited (“ASX”). The Company is a for-profit entity for the purposes of preparing the
financial statements. The address of its registered office and principal place of business is disclosed in the
Corporate Directory of the annual report.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net
investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented
in the income statement, within finance costs. All other foreign exchange gains and losses are presented in
the income statement on a net basis within other income or other expenses.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently in these financial statements.
(e)
Revenue recognition
Revenue from contracts with customers
(a)
Statement of compliance
The financial report is a general-purpose financial report which has been prepared in accordance with
Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian
Accounting Standards Board (AASB) and the Corporations Act 2001. The financial report of the Group also
complies with International Financial Reporting Standards (IFRSs) and interpretations adopted by the
International Accounting Standards Board.
The financial statements were approved by the Board of Directors on 28 September 2023.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis unless otherwise stated.
(c)
Principles of consolidation
Subsidiaries are all entities over which the Group 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 group. They are deconsolidated from the date that
control ceases. The acquisition method of accounting is used to account for business combinations by the
Group.
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
(d)
Foreign currency transactions
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”).
The consolidated financial statements are presented in Australian dollars, which is Dateline Resources
Limited, Dateline Fiji Pty Limited and Gunnison Gold Pty Limited’s functional and presentation currency.
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Sale of goods is recognised at the point of sale, which is where the customer has taken delivery of the goods,
the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
Sale of goods
Interest
Other revenue
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net
investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented
in the income statement, within finance costs. All other foreign exchange gains and losses are presented in
the income statement on a net basis within other income or other expenses.
(e)
Revenue recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Sale of goods
Sale of goods is recognised at the point of sale, which is where the customer has taken delivery of the goods,
the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(f)
New accounting standards and interpretations
The Group has applied all new, revised or amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board that are mandatory for the current reporting period. These and
together with other amending Accounting Standards and Interpretations commencing from 1 July 2021 did
not result in any material adjustments to the amounts recognised or disclosures in the financial report.
Going concern
(g)
The financial report has been prepared on a going concern basis, which contemplates the continuity of
normal business activities and the realisation of assets and liabilities in the normal course of business.
During the year, the consolidated entity incurred a net loss of $11,123,199 (2022: $13,904,468 loss) a net
cash outflow of $1,007,097 (2022: $5,156,032) and net cash out flow from operations of $13,717,198
(2022: $10,941,610). As at 30 June 2023, the consolidated entity also had a working capital deficit
of $8,906,248 (2022: deficit $10,284,620).
The ability of the Group to continue as a going concern is dependent upon the Group being able to generate
sufficient funds to satisfy exploration commitments and working capital requirements. The Company has
taken steps to ensure that it has adequate working capital to not only satisfy existing commitments but to
also future expenditure required to meet its objectives. These include
• A capital raising in July 2023 of $600,000,
• The consolidated entity’s projected cash flow analysis supporting its ability to meet its financial
obligations, whereby we will control expenditure according to our level of cash inflows.
• $3,076,923 from Sale of Gunnison Gold Pty Ltd (US$1,950,000).
• Additional funding that may be raised through various transactions including future fundraising from
financial institutions and the market; and
Issuing equity to settle future liabilities, if appropriate.
•
As a result of the above, the Company is able to execute its corporate strategy and the directors believe that
the going concern basis for the preparation of the financial report of the Group is appropriate. Should the
Company not be able to execute its corporate strategy there will be a material uncertainty that exists relating
to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. No adjustment has been made in relation to the recoverability and classification of recorded assets
amounts and classification of liabilities that might be necessary should the consolidated entity not continue
as a going concern.
Reverse Acquisition Accounting
(h)
Dateline Resources Limited is listed on the Australian Securities Exchange. Dateline Resources Limited
completed the legal acquisition of Dateline Fiji Pty Limited on 3rd October 2013.
Under the principles of AASB 3 Business Combinations Dateline Fiji Pty Limited was deemed to be the acquirer
for accounting purposes. Therefore, the transaction has been accounted for as a reverse acquisition under
AASB3. Accordingly, the consolidated financial statements of Dateline Resources Limited have been prepared
as a continuation of the consolidated financial statements of Dateline Fiji Pty Limited.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(i)
Income tax
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is recognised except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit; and in respect of taxable temporary
differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that it is probable that the temporary differences will not reverse
in the foreseeable future and the group is able to control the timing of the reversal of the temporary
differences.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred tax assets and deferred tax liabilities shall be offset only if:
(j)
there is a legally enforceable right to set-off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Profit or Loss and Other Comprehensive Income.
(i)
Other taxes
Revenues, expenses, assets and liabilities are recognised net of the amount of GST except where the GST
incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and receivables and payables are stated with amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Commitments or contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk or changes in value, and bank overdrafts.
taxation authority.
(j)
Cash and cash equivalents
(k)
Plant and equipment
Owned assets
impairment losses.
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and any
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Income tax
(i)
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is recognised except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit; and in respect of taxable temporary
differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that it is probable that the temporary differences will not reverse
in the foreseeable future and the group is able to control the timing of the reversal of the temporary
differences.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred tax assets and deferred tax liabilities shall be offset only if:
there is a legally enforceable right to set-off current tax assets against current tax liabilities; and
(j)
(ii) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Profit or Loss and Other Comprehensive Income.
Other taxes
(i)
Revenues, expenses, assets and liabilities are recognised net of the amount of GST except where the GST
incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and receivables and payables are stated with amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Commitments or contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Cash and cash equivalents
(j)
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk or changes in value, and bank overdrafts.
Plant and equipment
(k)
Owned assets
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and any
impairment losses.
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a work condition for its intended use, and the costs of dismantling and removing the
items and restoring the site on which they are located. Purchased software that is integral to the functionality
of the related equipment is capitalised as part of that equipment.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate
items (major components).
Subsequent costs
The Group recognises in the carrying amount of an item of plant and equipment the cost of replacing part of
such an item when that cost is incurred if it is probable that the future economic benefits embodied within
the item will flow to the Group and the cost of the item can be measured reliably. All other costs are
recognised in the profit or loss as an expense as incurred.
Depreciation
Depreciation is charged to the profit or loss using a straight-line method over the estimated useful lives of
each part of an item of plant and equipment.
Plant and equipment 3 years.
Office equipment 3 years.
Fixtures and fittings 3 years.
The estimated useful lives in the current financial year are as follows:
-
-
-
- Motor Vehicles 3 years.
- Mining equipment 10 years.
The residual value, the useful life and the depreciation method applied to an asset are reassessed at least
annually. Depreciation is commenced on plant, property and equipment once they are ready for use.
(l)
Exploration and evaluation
Exploration costs are accounted for under the "Area of Interest" method, whereby costs are carried forward
provided that rights to tenure of the area of interest are current and either there is a reasonable probability
of recoupment through successful development and exploitation or by their sale, or exploration activities in
the area have not reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable mineral reserves and active and significant operations in, or in relation to, the area
are continuing. The ultimate recoupment of costs carried forward in respect of areas of interest still in the
exploration or evaluation phases is dependent upon successful development and commercial exploitation,
or alternatively, sale of the respective areas. Exploration & Evaluation Assets are assessed for impairment
when facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
(m)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
(n)
Contributed equity
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, net of tax, from the proceeds.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(o)
Earnings per share
Basic earnings per share
shares issued during the year.
Diluted earnings per share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members
of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
(p)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(o)
Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members
of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
(p)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial
asset has become credit impaired or where it is determined that credit risk has increased significantly, the
loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(q)
Share Based Payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of
the option, together with non-vesting conditions that do not determine whether the consolidated entity
receives the services that entitle the employees to receive payment. No account is taken of any other vesting
conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair
value of the award, the best estimate of the number of awards that are likely to vest and the expired portion
of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount
calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and
conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the
liability is calculated as follows:
• during the vesting period, the liability at each reporting date is the fair value of the award at that date
•
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to
market conditions are considered to vest irrespective of whether or not that market condition has been met,
provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not
been made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity
or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
(r)
Borrowings
(s)
Convertible Notes
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability
in the statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the
amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the
passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion
option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction
costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The
corresponding interest on convertible notes is expensed to profit or loss.
(t)
Critical accounting estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The Directors evaluate estimates and judgments incorporated into the financial report
based on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both externally
and within the Group. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
(i)
Exploration & Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation is set out in Note 2(l) above. If, after having
capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the
expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the
Statement of Profit or Loss and Other Comprehensive Income.
(ii)
Discounting
The Group has discounted non-interest bearing payables to the vendors of acquired subsidiaries, refer note
13. This discount rate is reviewed annually.
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity
or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
(r)
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
(s)
Convertible Notes
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability
in the statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the
amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the
passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion
option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction
costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The
corresponding interest on convertible notes is expensed to profit or loss.
(t)
Critical accounting estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The Directors evaluate estimates and judgments incorporated into the financial report
based on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both externally
and within the Group. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
(i)
Exploration & Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation is set out in Note 2(l) above. If, after having
capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the
expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the
Statement of Profit or Loss and Other Comprehensive Income.
(ii)
Discounting
The Group has discounted non-interest bearing payables to the vendors of acquired subsidiaries, refer note
13. This discount rate is reviewed annually.
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(iii)
Share Based Payments
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is determined by
using the Black-Scholes model taking into account the terms and conditions upon which the instruments
were granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
period but may impact profit or loss and equity. Refer to note 17 for further information.
(iv)
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease
liability. Judgement is exercised in determining whether there is reasonable certainty that an option to
extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will
not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease
term, all facts and circumstances that create an economical incentive to exercise an extension option, or not
to exercise a termination option, are considered at the lease commencement date. Factors considered may
include the importance of the asset to the consolidated entity's operations; comparison of terms and
conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold
improvements; and the costs and disruption to replace the asset. The consolidated entity reassesses whether
it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a
significant event or significant change in circumstances.
(v)
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what the consolidated entity estimates it would have to pay a
third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with
similar terms, security and economic environment
(u)
Inventory
Inventories are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises
direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion
of variable and fixed overhead expenditure based on normal operating capacity.
Cost is determined on the following basis:
(a)
(b)
(c)
Gold and other metals on hand is valued on an average total production cost method
Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage
A proportion of related depreciation and amortisation charge is included in the cost of inventory
the period in which they are incurred.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery
costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessary to make the sale.
30
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DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(v)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial direct
costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be
incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
(w)
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable,
variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to
profit or loss if the carrying amount of the right-of-use asset is fully written down.
(x)
Finance costs
Finance costs attributable the group’s financial arrangements are capitalised as part of the borrowing and
amortised over the term of that borrowing or financial instrument. All other finance costs are expensed in
3
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The segments are consistent with the internal management reporting information that is regularly reviewed
by the chief operating decision maker, being the Board of Directors.
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(v)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial direct
costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be
incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
(w)
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable,
variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to
profit or loss if the carrying amount of the right-of-use asset is fully written down.
(x)
Finance costs
Finance costs attributable the group’s financial arrangements are capitalised as part of the borrowing and
amortised over the term of that borrowing or financial instrument. All other finance costs are expensed in
the period in which they are incurred.
3
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The segments are consistent with the internal management reporting information that is regularly reviewed
by the chief operating decision maker, being the Board of Directors.
31
25 | P a g e
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The reportable segments are based on aggregated operating segments determined by the similarity of
economic characteristics, the nature of the activities and the regulatory environment in which those
segments operate.
Management has identified three reportable operating segments based on the three principal locations of
its projects – Australia, USA and Fiji. Unallocated results, assets and liabilities represent corporate amounts
that are not core to the reportable segments. Segment assets include the costs to acquire tenements and
the capitalised exploration costs of those tenements.
30 June 2023
Australia
A$
USA
A$
Fiji
A$
Consolidation
Entries
TOTAL
A$
A$
Revenues
Segment Result
Total Segment Assets
Total Segment Liabilities
-
4,309,051
63,705,755
(11,083,124)
858,199
(15,436,661)
36,969,205
(44,553,854)
-
4,411
4,543,585
(5,296,024)
-
-
(67,886,080)
34,664,410
858,199
(11,123,199)
37,332,465
(26,268,592)
30 June 2022
A$
A$
A$
A$
A$
Revenues
Segment Result
Total Segment Assets
Total Segment Liabilities
-
(5,744,287)
52,559,235
(16,232,028)
2,773,721
(7,669,835)
37,498,024
(29,134,174)
-
-
4,501,506
(5,257,673)
(2,773,721)
(490,346)
(55,439,463)
22,093,415
-
(13,904,468)
39,119,302
(28,530,460)
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
4.
INVENTORY (CURRENT)
Gold & Silver concentrate on hand
Gold & Silver on hand as at 30 June 2022 had a net realisable
value of $1,348,251 measured at the spot rate of $1,806
(gold) and $20.28 (silver).
5. Other Income
Other Income
6. ADMINISTRATION EXPENSES
Consulting and corporate expenses
Compliance and regulatory expenses
7.
INCOME TAX EXPENSE
(a)
Income tax expense
Current tax
Deferred tax
30-Jun-23
30-Jun-22
$
$
1,348,251
1,348,251
-
-
-
-
-
-
-
4,483,686
75,574
4,559,260
3,999,098
124,287
4,123,385
169,686
169,686
-
-
-
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
(11,123,199)
(13,904,468)
Tax at the Australian tax rate of 25%
(2,780,800)
(3,476,117)
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Temporary difference not brought to account
2,780,800
3,476,117
Income tax expense
-
-
(c) Tax losses
Unused tax losses *
* The entities in the group have not formed a tax consolidated group and the unused tax losses
consists of tax losses from entities in the group calculated on a stand alone basis.
15,851,175
13,070,375
32
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27 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
4.
INVENTORY (CURRENT)
Gold & Silver concentrate on hand
Gold & Silver on hand as at 30 June 2022 had a net realisable
value of $1,348,251 measured at the spot rate of $1,806
(gold) and $20.28 (silver).
5. Other Income
Other Income
6. ADMINISTRATION EXPENSES
Consulting and corporate expenses
Compliance and regulatory expenses
7.
(a)
INCOME TAX EXPENSE
Income tax expense
Current tax
Deferred tax
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 25%
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Temporary difference not brought to account
Income tax expense
(c) Tax losses
Unused tax losses *
30-Jun-23
30-Jun-22
$
$
-
-
-
-
1,348,251
1,348,251
169,686
169,686
4,483,686
75,574
4,559,260
3,999,098
124,287
4,123,385
-
-
-
-
-
-
(11,123,199)
(2,780,800)
(13,904,468)
(3,476,117)
2,780,800
-
3,476,117
-
15,851,175
13,070,375
* The entities in the group have not formed a tax consolidated group and the unused tax losses
consists of tax losses from entities in the group calculated on a stand alone basis.
33
27 | P a g e
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8
CASH & CASH EQUIVALENTS
Cash at bank and in hand
30-Jun-23
$
928,940
928,940
30-Jun-22
$
1,936,037
1,936,037
9
TRADE & OTHER RECEIVABLES
30-Jun-23
30-Jun-22
$
102,943
102,943
$
36,659
36,659
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Other receivables
Reconciliation of net (loss) after tax to net cash flows used in operating activities
8a Net profit / (loss) after income tax
Adjustments for :
Depreciation
Debt forgiveness
Foreign exchange
Share based payments and option valuation
Proceeds from sale of PPE
Borrowing costs
Finance costs
Change in assets and liabilities
30-Jun-23
$
(11,123,199)
30-Jun-22
$
(13,904,468)
1,161,562
(7,361,276)
747,998
189,897
-
39,439
-
896,044
(169,686)
389,136
663,161
(48,561)
138,387
1,503,600
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in inventory
Net cash flows used in operating activities
(66,284)
1,346,414
1,348,251
(13,717,198)
-
939,028
(1,348,251)
(10,941,610)
(a)
Trade receivables past due but not impaired
There were no trade receivables past due but not impaired
(b)
Fair value and credit risk
their fair value.
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of
receivables mentioned above. Refer to Note 21 for more information on the risk management policy
of the Group and the credit quality of the Group’s trade receivables.
10 FINANCIAL ASSETS
Current
ANZ term deposits
Exploration deposits
Investments in unrelated companies
Equipment rental deposit
30-Jun-23
30-Jun-22
$
$
13,542
1,484,271
437,276
-
1,935,089
318,607
1,165,664
1,484,271
13,084
300,348
-
348,381
661,813
-
300,348
300,348
-
-
1,117,725
1,117,725
Exploration deposits:
30-Jun-23
30-Jun-22
Deposits held as security by government authorities
Amounts held in escrow for exploration contractors
Non-current
Security Deposit:
Deposits held as security by government authorities
34
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29 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
9
TRADE & OTHER RECEIVABLES
Other receivables
30-Jun-23
$
102,943
102,943
30-Jun-22
$
36,659
36,659
(a)
(b)
Trade receivables past due but not impaired
There were no trade receivables past due but not impaired
Fair value and credit risk
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate
their fair value.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of
receivables mentioned above. Refer to Note 21 for more information on the risk management policy
of the Group and the credit quality of the Group’s trade receivables.
10 FINANCIAL ASSETS
Current
ANZ term deposits
Exploration deposits
Investments in unrelated companies
Equipment rental deposit
Exploration deposits:
Deposits held as security by government authorities
Amounts held in escrow for exploration contractors
Non-current
Security Deposit:
Deposits held as security by government authorities
30-Jun-23
$
30-Jun-22
$
13,542
1,484,271
437,276
-
1,935,089
13,084
300,348
-
348,381
661,813
30-Jun-23
30-Jun-22
318,607
1,165,664
1,484,271
-
300,348
300,348
-
-
1,117,725
1,117,725
35
29 | P a g e
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11 PLANT & EQUIPMENT LAND & BUILDINGS
30-Jun-23
$
30-Jun-22
$
Carrying amount of plant & equipment land & buildings
17,890,385
18,114,172
(a) Plant and Equipment
At Cost
Less accumulated depreciation
Total plant and equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(b) Office Equipment
At Cost
Less accumulated depreciation
Total office equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(c) Mining equipment
At Cost
Less accumulated depreciation
Total mining plant & equipment
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
(d) Mining Land & Buildings
At Cost
Total Mining land and buildings
Movement during the year
Balance at the beginning of the year
Additions
Balance at the end of the year
298,272
(101,459)
196,813
171,770
46,471
(21,428)
196,813
77,162
(69,086)
8,076
14,849
-
(6,773)
8,076
251,799
(80,029)
171,770
-
198,117
(26,347)
171,770
77,162
(62,313)
14,849
12,476
7,696
(5,323)
14,849
8,151,069
(2,459,298)
5,691,771
7,946,596
(1,568,237)
6,378,359
6,378,359
204,473
(20,431)
(870,667)
5,691,734
5,444,375
1,568,755
-
(634,771)
6,378,359
11,938,350
11,938,350
11,376,640
11,376,640
11,376,640
561,710
11,938,350
11,376,640
-
11,376,640
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(e) Furniture & Fixtures
At Cost
Less accumulated depreciation
Total Furniture & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
(f) Motor Vehicles
At Cost
Less accumulated depreciation
Total Motor Vehicles
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
30-Jun-23
30-Jun-22
$
21,362
(8,658)
12,704
19,861
-
(1,551)
(5,606)
12,704
182,125
(139,417)
42,708
152,695
-
(60,057)
(49,930)
42,708
$
22,913
(3,052)
19,861
2,170
18,153
-
(462)
19,861
244,761
(92,066)
152,695
143,316
58,039
-
(48,660)
152,695
12 EXPLORATION & EVALUATION EXPENDITURE
Carrying amount of exploration expenditure
16,243,470
15,465,849
Movement during the year
Balance at the beginning of the year
Expenditure incurred during the year
Balance at the end of the year
15,465,849
777,621
16,243,470
8,539,957
6,925,892
15,465,849
Exploration and evaluation expenditure capitalised relates to expenditure incurred and capitalised for the
Udu Polymetallic Exploration Project in Fiji, the Gold Links Project located in Colorado USA and the Colosseum
Project in California USA. This expenditure has been accounted for in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources. The fair value of the tenements acquired on acquisition of Gunnison
Gold Pty Ltd have also been accounted for here.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest and
also dependent on the Group’s ability to renew the expired tenements without exception.
36
30 | P a g e
31 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(e) Furniture & Fixtures
At Cost
Less accumulated depreciation
Total Furniture & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
(f) Motor Vehicles
At Cost
Less accumulated depreciation
Total Motor Vehicles
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
30-Jun-23
$
30-Jun-22
$
21,362
(8,658)
12,704
19,861
-
(1,551)
(5,606)
12,704
182,125
(139,417)
42,708
152,695
-
(60,057)
(49,930)
42,708
22,913
(3,052)
19,861
2,170
18,153
-
(462)
19,861
244,761
(92,066)
152,695
143,316
58,039
-
(48,660)
152,695
12 EXPLORATION & EVALUATION EXPENDITURE
Carrying amount of exploration expenditure
16,243,470
15,465,849
Movement during the year
Balance at the beginning of the year
Expenditure incurred during the year
Balance at the end of the year
15,465,849
777,621
16,243,470
8,539,957
6,925,892
15,465,849
Exploration and evaluation expenditure capitalised relates to expenditure incurred and capitalised for the
Udu Polymetallic Exploration Project in Fiji, the Gold Links Project located in Colorado USA and the Colosseum
Project in California USA. This expenditure has been accounted for in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources. The fair value of the tenements acquired on acquisition of Gunnison
Gold Pty Ltd have also been accounted for here.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest and
also dependent on the Group’s ability to renew the expired tenements without exception.
37
31 | P a g e
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13 TRADE & OTHER PAYABLES
Current
Trade and sundry creditors
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
Accruals
30-Jun-23
$
30-Jun-22
$
4,088,374
-
-
921,319
5,009,693
2,598,527
3,458,736
3,458,738
433,980
9,949,981
Current trade & other payables are non-interest bearing and are settled on 30 day terms.
The amounts owed to the vendors of CRG Mining LLC and ALSH LLC as at 30 June 2022 ($6,917,474)
have been reduced to NIL for the year ended 30 June 2023. This was accomplished by the re-
negotiation of agreements and subsequent conversion of the current liability to a contingent liability
(refer Note 26). This has resulted in a debt forgiveness profit recorded in the Consolidated Statement
Of Profit or Loss and Other Comprehensive Income of $7,361,276.
14 FINANCIAL LIABILITIES TO RELATED PARTIES
Current
Loan - Mr. Mark Johnson
Convertible Notes Mr. Mark Johnson
Loan - Mr. Stephen Baghdadi
Non-Current
Convertible Notes Mr. Mark Johnson
30-Jun-23
$
30-Jun-22
$
5,318,474
-
-
5,318,474
3,023,700
160,240
100,000
3,283,940
926,560
926,560
848,071
848,071
At a General Meeting of the Company’s shareholders held on 21 May 2021, it was approved that the
Company issue to Mr. Mark Johnson 3,853,552 unsecured Convertible Notes in accordance with the
convertible note subscription agreement entered into by the Company on 20 April 2021.
The consideration for the issuance of these Convertible Notes was the cancellation/extinguishment by Mr
Johnson of all amounts owing by the Company to Mr Johnson (or his nominee) immediately after the
completion of a debt novation agreement which was also presented to and passed by shareholders at the
same General Meeting.
On 28 May 2021, the Company received from Mr. Johnson a Conversion Notice to covert 865,000 Convertible
Notes into 8,650,000 shares at an issue price of $0.10 per share. Mr Johnson converted a further 1,100,000
Convertible Notes to 11,000,000 shares in July 2021 and another 916,992 to 9,619,920 shares in June 2022.
This reduced the Convertible Notes outstanding as at 30 June 2022 to $926,560 (2022: $1,008,311). There
was an interest expense adjustment of $81,751 in the year ended 30 June 2023 which reduced the balance
outstanding to $926,560. The Company has the option of repaying the outstanding balance in cash.
The Convertible Note Agreement approved by shareholders at the above meeting, provides for interest to
be capitalised annually at a rate of 5% per annum. Interest expense of $24,107 has been accrued during the
year to meet this requirement.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Loans from Directors
During the financial year Mr Johnson lent a total of $2,703,000 in unsecured loans to the Company with an
interest rate payable of 10% p.a., repayable on 185 days’ notice. At a general meeting of shareholders held
on 28 April, 2023 shareholders approved the conversion of $420,000 debt owed to Mr Johnson to
21,000,000 ordinary shares at a deemed price of $0.02 per share. On 30 April 2023 the Company repaid
$300,000 in loans to Mr Johnson. Interest of $328,406 has been accrued as at 30 June 2023. Refer to the
table below for a summary of loans outstanding to Mr Johnson as at 30 June 2023.
LOANS FROM MARK JOHNSON AS AT 30 JUNE 2023
Loan
Date
Principal
Repayments
Interest
Principal
Outstanding
Loan
Interest
Outstanding
Rate
31 Dec 2021
$
300,000
$
300,000
$
-
$
19,973
$
19,973
28 Apr 2022
$
1,000,000
$
420,000
$
580,000
$
50,548
$
635,395
20 May 2022
$
700,000
$
-
$
700,000
$
4,847
$
739,027
03 Jun 2022
$
1,000,000
$
-
$
1,000,000
$
39,027
$
1,053,836
01 Nov 2022
$
1,250,000
$
-
$
1,250,000
$
53,836
$
1,332,877
17 Nov 2022
$
500,000
$
-
$
500,000
$
82,877
$
530,959
23 Nov 2022
$
300,000
$
-
$
300,000
$
30,959
$
318,082
02 Dec 2022
$
75,000
$
-
$
75,000
$
18,082
$
79,336
09 Dec 2022
$
428,000
$
-
$
428,000
$
4,336
$
451,921
11 Jan 2023
$
150,000
$
-
$
150,000
$
23,921
$
157,068
TOTAL
$
5,703,000
$
720,000
$
4,983,000
$
328,406
$
5,318,474
5%
5%
5%
5%
10%
10%
10%
10%
10%
10%
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July 2022. No
interest was payable.
15 LOANS
Current
Short term loans
Loan US Eagle Federal Credit Union
Long Term
Loan US Eagle Federal Credit Union
Less: capitalised borrowing costs
Other loans
30-Jun-23
30-Jun-22
$
$
1,210,436
257,731
1,468,167
14,172,620
(849,293)
(59,753)
615.069
332,205
947,274
13,819,726
(811,018)
-
13,263,574
13,008,708
As announced to the market on 24 March 2021, the Company has secured a working capital facility of
$9,091,718 (US$6,847,882). The loan has a maturity date of 23 March 2031. The first 3 years of the loan are
interest only followed by principal and interest for the remainder of the term. The interest rate is 2.75% plus the
US prime rate per annum (based on a 360-day year). The facility is secured and ringfenced by the Company’s
Gold Links project in Colorado USA. In January 2022 the Company borrowed a further US$3,000,000. This loan
has a 10-year maturity date, interest and principal monthly repayments immediately. Interest is payable at
2.75% plus the US prime rate per annum.
All those facilities have been fully drawn down at balance date.
38
32 | P a g e
33 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Loans from Directors
During the financial year Mr Johnson lent a total of $2,703,000 in unsecured loans to the Company with an
interest rate payable of 10% p.a., repayable on 185 days’ notice. At a general meeting of shareholders held
on 28 April, 2023 shareholders approved the conversion of $420,000 debt owed to Mr Johnson to
21,000,000 ordinary shares at a deemed price of $0.02 per share. On 30 April 2023 the Company repaid
$300,000 in loans to Mr Johnson. Interest of $328,406 has been accrued as at 30 June 2023. Refer to the
table below for a summary of loans outstanding to Mr Johnson as at 30 June 2023.
LOANS FROM MARK JOHNSON AS AT 30 JUNE 2023
Loan
Date
31 Dec 2021
28 Apr 2022
20 May 2022
03 Jun 2022
01 Nov 2022
17 Nov 2022
23 Nov 2022
02 Dec 2022
09 Dec 2022
11 Jan 2023
TOTAL
Principal
Repayments
$
$
$
$
$
$
$
$
$
$
$
300,000
1,000,000
700,000
1,000,000
1,250,000
500,000
300,000
75,000
428,000
150,000
5,703,000
300,000
$
$
420,000
$
-
-
$
$
-
$
-
$
-
$
-
$
-
$
-
$
720,000
Principal
Outstanding
$
-
$
580,000
$
700,000
$
1,000,000
$
1,250,000
$
500,000
$
300,000
$
75,000
$
428,000
$
150,000
$
4,983,000
Interest
$
$
$
$
$
$
$
$
$
$
$
19,973
50,548
4,847
39,027
53,836
82,877
30,959
18,082
4,336
23,921
328,406
Loan
Outstanding
$
19,973
$
635,395
$
739,027
$
1,053,836
$
1,332,877
$
530,959
$
318,082
$
79,336
$
451,921
$
157,068
$
5,318,474
Interest
Rate
5%
5%
5%
5%
10%
10%
10%
10%
10%
10%
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July 2022. No
interest was payable.
15 LOANS
Current
Short term loans
Loan US Eagle Federal Credit Union
Long Term
Loan US Eagle Federal Credit Union
Less: capitalised borrowing costs
Other loans
30-Jun-23
$
30-Jun-22
$
1,210,436
257,731
1,468,167
14,172,620
(849,293)
(59,753)
13,263,574
615.069
332,205
947,274
13,819,726
(811,018)
-
13,008,708
As announced to the market on 24 March 2021, the Company has secured a working capital facility of
$9,091,718 (US$6,847,882). The loan has a maturity date of 23 March 2031. The first 3 years of the loan are
interest only followed by principal and interest for the remainder of the term. The interest rate is 2.75% plus the
US prime rate per annum (based on a 360-day year). The facility is secured and ringfenced by the Company’s
Gold Links project in Colorado USA. In January 2022 the Company borrowed a further US$3,000,000. This loan
has a 10-year maturity date, interest and principal monthly repayments immediately. Interest is payable at
2.75% plus the US prime rate per annum.
All those facilities have been fully drawn down at balance date.
39
33 | P a g e
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
16. CONTRIBUTED EQUITY
16. CONTRIBUTED EQUITY
(a) Share Capital
(a) Share Capital
Ordinary Capital - Number of Shares
Ordinary Capital - Number of Shares
Ordinary Capital - Paid Up
Ordinary Capital - Paid Up
(b) Movements in Share Capital
(b) Movements in Share Capital
1 July 2022
1 July 2022
30 Aug 2022
30 Aug 2022
13 Oct 2022
13 Oct 2022
01 Dec 2022
01 Dec 2022
08 Mar 2023
08 Mar 2023
17 Mar 2023
17 Mar 2023
11 Apr 2023
11 Apr 2023
12 May 2023
12 May 2023
19 May 2023
19 May 2023
09 Jun 2023
09 Jun 2023
15 Jun 2023
15 Jun 2023
16 Jun 2023
16 Jun 2023
29 Jun 2023
29 Jun 2023
Opening Balance
Opening Balance
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Share Issue Costs
Share Issue Costs
Closing Balance
Closing Balance
Consolidated
Consolidated
Consolidated
Consolidated
30-Jun-23
30-Jun-23
856,871,409
856,871,409
$58,783,327
$58,783,327
No. of Shares
No. of Shares
495,730,320
495,730,320
44,067,500
44,067,500
22,282,500
22,282,500
3,104,198
3,104,198
54,635,000
54,635,000
18,865,000
18,865,000
5,135,050
5,135,050
107,000,000
107,000,000
11,199,665
11,199,665
18,043,000
18,043,000
15,000,000
15,000,000
47,500,000
47,500,000
14,309,176
14,309,176
856,871,409
856,871,409
30-Jun-22
30-Jun-22
495,730,320
495,730,320
$46,986,850
$46,986,850
$
$
46,986,850
46,986,850
4,406,750
4,406,750
2,228,250
2,228,250
199,400
199,400
1,092,700
1,092,700
377,300
377,300
102,701
102,701
2,140,000
2,140,000
223,993
223,993
360,860
360,860
300,000
300,000
950,000
950,000
429,276
429,276
(1,014,753)
(1,014,753)
58,783,327
58,783,327
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen Baghdadi:
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen Baghdadi:
16,420,156 and Mr. Bill Lannen : 2,463,023). These shares were issued with the consideration payable by Mr.
16,420,156 and Mr. Bill Lannen : 2,463,023). These shares were issued with the consideration payable by Mr.
Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced by
Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced by
the Company. Under AASB2, the issuance of these shares is treated as share based payments, the value of
the Company. Under AASB2, the issuance of these shares is treated as share based payments, the value of
these were assessed by Directors based on information including an independent valuation (using an option
these were assessed by Directors based on information including an independent valuation (using an option
pricing model) at $1,302,939 and are recorded in the Share Based Payments Reserve (Note 17).
pricing model) at $1,302,939 and are recorded in the Share Based Payments Reserve (Note 17).
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held. At shareholders meetings, each
in proportion to the number of and amounts paid on the shares held. At shareholders meetings, each
ordinary share is entitled to one vote per share when a poll is called, otherwise each shareholder has one
ordinary share is entitled to one vote per share when a poll is called, otherwise each shareholder has one
vote on a show of hands.
vote on a show of hands.
At 30 June 2023 there were 856,871,409 (2022: 495,730,320) fully paid ordinary shares on issue, which are
At 30 June 2023 there were 856,871,409 (2022: 495,730,320) fully paid ordinary shares on issue, which are
freely tradeable, other than 12,500,000 escrowed until 15 October 2023, 423,729 escrowed until 14 April
freely tradeable, other than 12,500,000 escrowed until 15 October 2023, 423,729 escrowed until 14 April
2024 and 1,694,916 escrowed until 14 April 2025, 14,309,176 escrowed until 29 June 2024 and 40,000,000
2024 and 1,694,916 escrowed until 14 April 2025, 14,309,176 escrowed until 29 June 2024 and 40,000,000
escrowed until 16 June 2033. There are no preference shares on issue.
escrowed until 16 June 2033. There are no preference shares on issue.
(b) Capital Management
(b) Capital Management
The Group’s capital includes share capital, reserves and accumulated losses. The Group’s objectives when
The Group’s capital includes share capital, reserves and accumulated losses. The Group’s objectives when
managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can continue
managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can continue
to provide returns for shareholders and benefits for other stakeholders. The Group manages the capital
to provide returns for shareholders and benefits for other stakeholders. The Group manages the capital
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics
of the underlying assets. In order to achieve this, the Group may issue new shares in order to meet its
of the underlying assets. In order to achieve this, the Group may issue new shares in order to meet its
financial obligations. There are no externally imposed capital requirements.
financial obligations. There are no externally imposed capital requirements.
40
34 | P a g e
34 | P a g e
DATELINE RESOURCES LIMITED
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
17 RESERVES
17 RESERVES
Option Valuation Reserve
Option Valuation Reserve
Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
Share Based Payments Reserve
Share Based Payments Reserve
30-Jun-23
30-Jun-23
$
$
1,036,373
1,036,373
(2,381,228)
(2,381,228)
1,680,846
1,680,846
335,991
335,991
30-Jun-22
30-Jun-22
$
$
1,137,873
1,137,873
(1,993,088)
(1,993,088)
1,680,846
1,680,846
825,631
825,631
Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign
The foreign currency translation reserve records exchange differences arising on translation of foreign
controlled subsidiaries.
controlled subsidiaries.
Option Valuation Reserve
Option Valuation Reserve
Issue
Issue
Date
Date
27 Apr 22
27 Apr 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
14 Oct 22
14 Oct 22
19 Dec 22
19 Dec 22
12 May 23
12 May 23
18 May 23
18 May 23
Removal
Removal
Or Lapse
Or Lapse
Date
Date
Opening Balance 1 July 2021
Opening Balance 1 July 2021
Number
Number
of Options
of Options
7,200,000
7,200,000
5,000,000
5,000,000
2,000,000
2,000,000
1,000,000
1,000,000
2,000,000
2,000,000
19,704,181
19,704,181
(6,000,000)
(6,000,000)
(4,000,000)
(4,000,000)
11,937,500
11,937,500
15,587,500
15,587,500
75,100,000
75,100,000
13,550,000
13,550,000
(19,704,181)
(19,704,181)
Exercise
Exercise
Price
Price
$0.1100
$0.1100
$0.1000
$0.1000
$0.1300
$0.1300
$0.1500
$0.1500
$0.2000
$0.2000
Expiry
Expiry
Date
Date
27 Apr 24
27 Apr 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 25
30 Jun 25
$0.0135
$0.0135
$0.0135
$0.0135
$0.0300
$0.0300
$0.0300
$0.0300
14 Oct 25
14 Oct 25
19 Dec 25
19 Dec 25
12 May 26
12 May 26
18 May 26
18 May 26
28 Feb 22
28 Feb 22
28 Feb 22
28 Feb 22
Closing Balance 30 June 2022
Closing Balance 30 June 2022
30 Jun 23
30 Jun 23
Closing Balance 30 June 2023
Closing Balance 30 June 2023
Option
Option
Expense
Expense
$270,166
$270,166
$582,453
$582,453
$132,011
$132,011
$52,804
$52,804
$26,402
$26,402
$52,804
$52,804
$141,607
$141,607
($63,485)
($63,485)
($56,890)
($56,890)
$1,137,873
$1,137,873
$115,732
$115,732
$41,350
$41,350
$28,700
$28,700
$4,110
$4,110
($291,392)
($291,392)
$1,036,373
$1,036,373
All issued options have been valued by an independent expert using the Black Scholes Model.
All issued options have been valued by an independent expert using the Black Scholes Model.
On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at the
On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at the
Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options issued was
Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options issued was
$456,133. The fair value at grant date is determined using the Black Scholes Model. The options vest in 3
$456,133. The fair value at grant date is determined using the Black Scholes Model. The options vest in 3
equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of reserves and the third
equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of reserves and the third
at 60k tonnes of production.
at 60k tonnes of production.
$149,785 was recognised in the year ended 30 June 2021 and $141,607 was recognised in the options
$149,785 was recognised in the year ended 30 June 2021 and $141,607 was recognised in the options
reserve in the year ended 30 June 2022.
reserve in the year ended 30 June 2022.
On 13 June 2023, the Company announced that it had executed a binding agreement with MW Sorter LLC
On 13 June 2023, the Company announced that it had executed a binding agreement with MW Sorter LLC
for the sale of Gunnison Gold Pty Ltd, the entity that owns all of the Colorado assets including the Gold
for the sale of Gunnison Gold Pty Ltd, the entity that owns all of the Colorado assets including the Gold
Links and Lucky Strike mill. As a result it was decided that the options would not be exercised and their
Links and Lucky Strike mill. As a result it was decided that the options would not be exercised and their
total expense of $291,392 was removed from the reserve.
total expense of $291,392 was removed from the reserve.
35 | P a g e
35 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
17 RESERVES
17 RESERVES
Option Valuation Reserve
Option Valuation Reserve
Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
Share Based Payments Reserve
Share Based Payments Reserve
30-Jun-23
30-Jun-23
$
$
1,036,373
1,036,373
(2,381,228)
(2,381,228)
1,680,846
1,680,846
335,991
335,991
30-Jun-22
30-Jun-22
$
$
1,137,873
1,137,873
(1,993,088)
(1,993,088)
1,680,846
1,680,846
825,631
825,631
Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign
The foreign currency translation reserve records exchange differences arising on translation of foreign
controlled subsidiaries.
controlled subsidiaries.
Option Valuation Reserve
Option Valuation Reserve
Issue
Issue
Date
Date
27 Apr 22
27 Apr 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
30 Jun 22
14 Oct 22
14 Oct 22
19 Dec 22
19 Dec 22
12 May 23
12 May 23
18 May 23
18 May 23
Removal
Removal
Or Lapse
Or Lapse
Date
Date
Number
Number
of Options
of Options
Opening Balance 1 July 2021
Opening Balance 1 July 2021
Exercise
Exercise
Price
Price
$0.1100
$0.1100
$0.1000
$0.1000
$0.1300
$0.1300
$0.1500
$0.1500
$0.2000
$0.2000
7,200,000
7,200,000
5,000,000
5,000,000
2,000,000
2,000,000
1,000,000
1,000,000
2,000,000
2,000,000
19,704,181
19,704,181
(6,000,000)
(6,000,000)
(4,000,000)
(4,000,000)
28 Feb 22
28 Feb 22
28 Feb 22
28 Feb 22
Closing Balance 30 June 2022
Closing Balance 30 June 2022
11,937,500
11,937,500
15,587,500
15,587,500
75,100,000
75,100,000
13,550,000
13,550,000
(19,704,181)
(19,704,181)
Closing Balance 30 June 2023
Closing Balance 30 June 2023
$0.0135
$0.0135
$0.0135
$0.0135
$0.0300
$0.0300
$0.0300
$0.0300
30 Jun 23
30 Jun 23
Expiry
Expiry
Date
Date
27 Apr 24
27 Apr 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 25
30 Jun 25
14 Oct 25
14 Oct 25
19 Dec 25
19 Dec 25
12 May 26
12 May 26
18 May 26
18 May 26
Option
Option
Expense
Expense
$270,166
$270,166
$582,453
$582,453
$132,011
$132,011
$52,804
$52,804
$26,402
$26,402
$52,804
$52,804
$141,607
$141,607
($63,485)
($63,485)
($56,890)
($56,890)
$1,137,873
$1,137,873
$115,732
$115,732
$41,350
$41,350
$28,700
$28,700
$4,110
$4,110
($291,392)
($291,392)
$1,036,373
$1,036,373
All issued options have been valued by an independent expert using the Black Scholes Model.
All issued options have been valued by an independent expert using the Black Scholes Model.
On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at the
On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at the
Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options issued was
Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options issued was
$456,133. The fair value at grant date is determined using the Black Scholes Model. The options vest in 3
$456,133. The fair value at grant date is determined using the Black Scholes Model. The options vest in 3
equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of reserves and the third
equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of reserves and the third
at 60k tonnes of production.
at 60k tonnes of production.
$149,785 was recognised in the year ended 30 June 2021 and $141,607 was recognised in the options
$149,785 was recognised in the year ended 30 June 2021 and $141,607 was recognised in the options
reserve in the year ended 30 June 2022.
reserve in the year ended 30 June 2022.
On 13 June 2023, the Company announced that it had executed a binding agreement with MW Sorter LLC
On 13 June 2023, the Company announced that it had executed a binding agreement with MW Sorter LLC
for the sale of Gunnison Gold Pty Ltd, the entity that owns all of the Colorado assets including the Gold
for the sale of Gunnison Gold Pty Ltd, the entity that owns all of the Colorado assets including the Gold
Links and Lucky Strike mill. As a result it was decided that the options would not be exercised and their
Links and Lucky Strike mill. As a result it was decided that the options would not be exercised and their
total expense of $291,392 was removed from the reserve.
total expense of $291,392 was removed from the reserve.
35 | P a g e
35 | P a g e
41
DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Share Based Payments Reserve
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Baghdadi:
16,420,156 and Mr. Lannen : 2,463,023). These shares were issued with the consideration payable by Mr.
Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced by
the Company. Under AASB2, the issuance of these shares is treated as share-based payments, the cost of
these were independently valued (using an option pricing model) at $1,302,939 and are recorded in the
Share Based Payments Reserve.
On 14 July 2021 the Company issued to two employees 400,000 and 200,000 fully paid ordinary shares.
These shares were issued with the consideration payable by the employees for the shares funded by
interest free and limited recourse loans of $40,000 and $20,000 advanced by the Company, secured against
the 400,000 and 200,000 ordinary shares respectively. Under AASB2, the issuance of these shares is treated
as share-based payments, the cost of these were independently valued (using an option pricing model) at
$20,746 and are recorded in the Share Based Payments Reserve.
On 30 July 2021 7,000,000 options were issued to PAC Partners. The assessed fair value at grant date of
options issued was $357,161. The fair value at grant date is determined using the Black Scholes Model.
18 EARNINGS PER SHARE
The calculation of basic loss per share at 30 June 2023 was based on the loss attributable to ordinary
shareholders of $11,123,199 (2022 : loss $13,904,468) and a weighted average number of shares
outstanding during the financial year ended 30 June 2023 of 592,885,314 (2022 :436,141,402)
calculated as follows :
(a) Basic (loss) per share
30-Jun-23
30-Jun-22
Net (loss) per share attributable to ordinary
equity holders of the Company ($)
Weighted average number of ordinary shares
Continuing operations
Basic (loss) per share (cents)
($11,123,199)
($13,904,468)
592,885,314
436,141,402
(1.88)
(3.19)
(b) Diluted (loss) per share
Potential ordinary shareholders are not considered dilutive, thus diluted profit/(loss) per share
is the same as basic loss per share.
19 RIGHT-OF-USE ASSETS (NON-CURRENT)
Motor Vehicles - right of use
Less: Accumulated depreciation
619,277
(387,639)
231,638
619,277
(180,481)
438,796
Additions to the right-of-use assets during the year were $NIL.
The consolidated entity leases motor vehicles under agreements of between one to three years with, in some
cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are
renegotiated. The consolidated entity leases other equipment under agreements of less than one year, those
leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-
use assets.
Lease liabilities (non-current)
205,238
406,301
21 FINANCIAL RISK MANAGEMENT
The Group's principal financial instruments consist of deposits with banks, receivables, other financial
assets and payables. At the reporting date, the Group had the following mix of financial assets and
liabilities.
30-Jun-23
30-Jun-22
$
$
76,886
86,185
30-Jun-23
30-Jun-22
$
$
928,940
102,943
1,935,089
2,966,972
5,009,693
5,318,474
1,468,167
282,124
13,263,574
25,342,032
1,936,037
36,659
661,813
2,634,509
9,949,981
3,283,940
947,274
492,486
13,008,708
27,682,389
(22,375,060)
(25,047,880)
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20 LEASE LIABILITIES
Lease liabilities (current)
Financial Assets
Cash & cash equivalents
Trade & other receivables
Financial Assets
Financial Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease Liabilities
Long term loan
Net exposure
Financial risk management
the Board of Directors.
(a)
Interest rate risk
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk, foreign
currency risk and liquidity risk. The Group uses different methods to measure and manage different types of
risks to which it is exposed. Primary responsibility for identification and control of financial risks rests with
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Group is exposed to interest rate risk as it invests funds at both fixed and floating interest
rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate deposits.
42
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20 LEASE LIABILITIES
Lease liabilities (current)
30-Jun-23
$
76,886
30-Jun-22
$
86,185
Lease liabilities (non-current)
205,238
406,301
21 FINANCIAL RISK MANAGEMENT
The Group's principal financial instruments consist of deposits with banks, receivables, other financial
assets and payables. At the reporting date, the Group had the following mix of financial assets and
liabilities.
Financial Assets
Cash & cash equivalents
Trade & other receivables
Financial Assets
Financial Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease Liabilities
Long term loan
Net exposure
Financial risk management
30-Jun-23
$
30-Jun-22
$
928,940
102,943
1,935,089
2,966,972
5,009,693
5,318,474
1,468,167
282,124
13,263,574
25,342,032
(22,375,060)
1,936,037
36,659
661,813
2,634,509
9,949,981
3,283,940
947,274
492,486
13,008,708
27,682,389
(25,047,880)
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk, foreign
currency risk and liquidity risk. The Group uses different methods to measure and manage different types of
risks to which it is exposed. Primary responsibility for identification and control of financial risks rests with
the Board of Directors.
(a)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Group is exposed to interest rate risk as it invests funds at both fixed and floating interest
rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate deposits.
43
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Financial Assets
Cash and cash equivalents
Financial Liability - long term loan
30-Jun-23
$
928,940
13,263,574
30-Jun-22
$
1,936,037
13,008,708
Sensitivity
Based on the cash and cash equivalent held on 30 June 2023, had the interest rate increased by 1%, the
group’s post-tax loss would have been decreased by $9,289 and had the interest rate decreased. By 1% the
group's post tax loss would have been increased by $9,289. Based on the cash and cash equivalent held on
30 June 2022, had the interest rate increased by 1%, the group’s post-tax loss would have been decreased
by $19,360 and had the interest rate decreased by 1% the group's post tax loss would have been increased
by $19,360.
The Company has 3 long terms loans totaling US$9,380,290 (2022: US$9,847,000). Interest is payable
monthly at the US Prime Rate plus 2.75% p.a.
Based on the borrowings at held on 30 June 2023, had the interest rate increased by 1%, the group’s post-
tax loss would have been increased by $US93,802 ($A132,635) and had the interest rate decreased by 1%
the group's post tax loss would have been decreased by $US93,802 ($A$132,635). Based on the borrowings
held on 30 June 2022, had the interest rate increased by 1%, the group’s post-tax loss would have been
increased by US$98,470 ($A130,521) and had the interest rate decreased by 1% the group's post tax loss
would have been decreased by US$98,470 ($A130,521).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financing loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
The carrying amount of financial assets recorded in the financial statements, net of any provision for losses,
represents the Group’s maximum exposure to credit risk. All trade and other receivables are due within 30
days and none are past due.
(i) Cash and cash equivalents
The Group’s primary banker is Commonwealth Bank of Australia (2022 : Commonwealth Bank of Australia).
The Board considers the use of this financial institution, which has a short term rating of AA- from Standards
and Poors to be sufficient in the management of credit risk with regards to these funds.
Cash and cash equivalents
(ii) Trade & other receivables
30-Jun-23
$
928,940
30-Jun-22
$
1,936,037
While the Group has policies in place to ensure that transactions with third parties have an appropriate credit
history, the management of current and potential credit risk exposures is limited as far as is considered
commercially appropriate. Up to the date of this report, the Board has placed no requirement for collateral
on existing debtors.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(b)
Foreign currency risk
The group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US and Fijian dollar. Foreign exchange risk arises from future
commercial transactions and recognised financial assets and financial liabilities denominated in a currency
that is not the Company’s functional currency. The risk is measured using sensitivity analysis and cash flow
forecasting. The group's exposure to foreign currency risk at the end of the reporting period, expressed in
Australian Dollars, was as follows:
Cash at bank and short term bank deposits
Financial assets
Payables
Borrowings
SENSITIVITY
30-Jun-23
30-Jun-22
$
534,547
1,497,813
(3,703,263)
(13,952,987)
(15,623,890)
$
294,953
1,765,758
(2,678,058)
(14,210,441)
(14,827,788)
At 30 June 2023, had the Australian dollar weakened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have reduced by $1,562,389 (2022: $1,482,778)
and loss would have increased by $1,562,389 (2022: $1,482,778).
At 30 June 2022, had the Australian dollar strengthened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have increased by $1,562,389 (2022: $1,482,778)
and loss would have reduced by $1,562,389 (2022: $1,482,778).
Liquidity risk management
financial liabilities.
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and
long-term funding and liquidity management requirements.
The Group manages liquidity risk by continually monitoring cash reserves and cash flow forecasts to ensure
that financial commitments can be met as and when they fall due.
The terms of the group’s financial liabilities are detailed in notes 13, 14 and 15.
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(b)
Foreign currency risk
The group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US and Fijian dollar. Foreign exchange risk arises from future
commercial transactions and recognised financial assets and financial liabilities denominated in a currency
that is not the Company’s functional currency. The risk is measured using sensitivity analysis and cash flow
forecasting. The group's exposure to foreign currency risk at the end of the reporting period, expressed in
Australian Dollars, was as follows:
Cash at bank and short term bank deposits
Financial assets
Payables
Borrowings
30-Jun-23
$
534,547
1,497,813
(3,703,263)
(13,952,987)
(15,623,890)
30-Jun-22
$
294,953
1,765,758
(2,678,058)
(14,210,441)
(14,827,788)
SENSITIVITY
At 30 June 2023, had the Australian dollar weakened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have reduced by $1,562,389 (2022: $1,482,778)
and loss would have increased by $1,562,389 (2022: $1,482,778).
At 30 June 2022, had the Australian dollar strengthened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have increased by $1,562,389 (2022: $1,482,778)
and loss would have reduced by $1,562,389 (2022: $1,482,778).
Liquidity risk management
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with
financial liabilities.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and
long-term funding and liquidity management requirements.
The Group manages liquidity risk by continually monitoring cash reserves and cash flow forecasts to ensure
that financial commitments can be met as and when they fall due.
The terms of the group’s financial liabilities are detailed in notes 13, 14 and 15.
45
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023 DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
22
KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Key management personnel compensation
Information regarding individual Directors and Executive compensation and some equity instruments
disclosures as permitted by Corporations Regulation 2M.3.03 is provided in the remuneration report section
of the Directors’ report.
Disclosures relating to directors and executives are set out in note 22 Key Management Personnel
Compensation by category
Short term employee benefits
(b)
(i)
Material contracts
Directors’ Deeds of Indemnity
30-Jun-23
$
30-Jun-22
$
660,000
660,000
480,000
480,000
With every Director appointment, the Group enters into a deed of indemnity, insurance and access with each
of its Directors. Under these deeds, the Group agrees to indemnify each Director to the extent permitted by
the Corporations Act 2001 against any liability arising as a result of the Director acting in the capacity as a
Director of the Group. The Group is also required to maintain insurance policies for the benefit of the
Directors and must also allow the Directors to inspect Group documents in certain circumstances.
(ii)
Loans to Directors
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen
Baghdadi: 16,420,156 and Mr. Bill Lannen-: 2,463,023). These shares were issued with the consideration
payable by Mr. Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse
loan advanced by the Company. Under AASB2, the issuance of these shares is treated as share-based
payments, the cost of these were independently valued (using an option pricing model) at $1,302,939 and
are recorded in the Share Based Payments Reserve (Note 17).
Other Fees Paid to/accrued for Directors
Other than that provided in the remuneration section of the Directors’ report, there were no other fees
paid to Directors.
(iii)
Balances outstanding
As at 30 June 2023 the following amounts were unpaid to KMP and or Directors:
Mr Baghdadi
30-Jun-23
$
132,000
30-Jun-22
$
238,000
year to meet this requirement.
Directors Loans
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
23 RELATED PARTY DISCLOSURES
(i)
Key management personnel
Disclosures.
(ii) Transactions with related parties
FINANCIAL LIABILITIES TO RELATED PARTIES
Current
Loan - Mr. Mark Johnson
Convertible Notes Mr. Mark Johnson
Loan - Mr. Stephen Baghdadi
Non-Current
Convertible Notes Mr. Mark Johnson
30-Jun-23
30-Jun-22
$
$
5,318,474
-
-
5,318,474
3,023,700
160,240
100,000
3,283,940
926,560
926,560
848,071
848,071
At a General Meeting of the Company’s shareholders held on 21 May 2021, it was approved that the
Company issue to Mr. Mark Johnson 3,853,552 unsecured Convertible Notes in accordance with the
convertible note subscription agreement entered into by the Company on 20 April 2021.
The consideration for the issuance of these Convertible Notes was the cancellation/extinguishment by Mr
Johnson of all amounts owing by the Company to Mr Johnson (or his nominee) immediately after the
completion of a debt novation agreement which was also presented to and passed by shareholders at the
same General Meeting.
On 28 May 2021, the Company received from Mr. Johnson a Conversion Notice to covert 865,000 Convertible
Notes into 8,650,000 shares at an issue price of $0.10 per share. Mr Johnson converted a further 1,100,000
Convertible Notes to 11,000,000 shares in July 2021 and another 916,992 to 9,619,920 shares in June 2022.
This reduced the Convertible Notes outstanding as at 30 June 2022 to $1,008,311 (2021: $2,988,552).
There was an interest expense adjustment of $81,751 in the year ended 30 June 2023 which reduced the
balance outstanding to $926,560. The Company has the option of repaying the outstanding balance in cash.
The Convertible Note Agreement approved by shareholders at the above meeting, provides for interest to
be capitalised annually at a rate of 5% per annum. Interest expense of $24,107 has been accrued during the
During the financial year Mr Johnson lent a total of $2,703,000 in unsecured loans to the Company with an
interest rate payable of 10% p.a., repayable on 185 days’ notice. At a general meeting of shareholders held
on 28 April, 2023 shareholders approved the conversion of $420,000 debt owed to Mr Johnson to
21,000,000 ordinary shares at a deemed price of $0.02 per share. On 30 April 2023 the Company repaid
$300,000 in loans to Mr Johnson. Interest of $328,406 has been accrued as at 30 June 2023. Refer to the
table in Note 14 for a summary of loans outstanding to Mr Johnson as at 30 June 2023.
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July. No interest was
payable.
46
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
23 RELATED PARTY DISCLOSURES
(i)
Key management personnel
Disclosures relating to directors and executives are set out in note 22 Key Management Personnel
Disclosures.
(ii) Transactions with related parties
FINANCIAL LIABILITIES TO RELATED PARTIES
Current
Loan - Mr. Mark Johnson
Convertible Notes Mr. Mark Johnson
Loan - Mr. Stephen Baghdadi
Non-Current
Convertible Notes Mr. Mark Johnson
30-Jun-23
$
30-Jun-22
$
5,318,474
-
-
5,318,474
3,023,700
160,240
100,000
3,283,940
926,560
926,560
848,071
848,071
At a General Meeting of the Company’s shareholders held on 21 May 2021, it was approved that the
Company issue to Mr. Mark Johnson 3,853,552 unsecured Convertible Notes in accordance with the
convertible note subscription agreement entered into by the Company on 20 April 2021.
The consideration for the issuance of these Convertible Notes was the cancellation/extinguishment by Mr
Johnson of all amounts owing by the Company to Mr Johnson (or his nominee) immediately after the
completion of a debt novation agreement which was also presented to and passed by shareholders at the
same General Meeting.
On 28 May 2021, the Company received from Mr. Johnson a Conversion Notice to covert 865,000 Convertible
Notes into 8,650,000 shares at an issue price of $0.10 per share. Mr Johnson converted a further 1,100,000
Convertible Notes to 11,000,000 shares in July 2021 and another 916,992 to 9,619,920 shares in June 2022.
This reduced the Convertible Notes outstanding as at 30 June 2022 to $1,008,311 (2021: $2,988,552).
There was an interest expense adjustment of $81,751 in the year ended 30 June 2023 which reduced the
balance outstanding to $926,560. The Company has the option of repaying the outstanding balance in cash.
The Convertible Note Agreement approved by shareholders at the above meeting, provides for interest to
be capitalised annually at a rate of 5% per annum. Interest expense of $24,107 has been accrued during the
year to meet this requirement.
Directors Loans
During the financial year Mr Johnson lent a total of $2,703,000 in unsecured loans to the Company with an
interest rate payable of 10% p.a., repayable on 185 days’ notice. At a general meeting of shareholders held
on 28 April, 2023 shareholders approved the conversion of $420,000 debt owed to Mr Johnson to
21,000,000 ordinary shares at a deemed price of $0.02 per share. On 30 April 2023 the Company repaid
$300,000 in loans to Mr Johnson. Interest of $328,406 has been accrued as at 30 June 2023. Refer to the
table in Note 14 for a summary of loans outstanding to Mr Johnson as at 30 June 2023.
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July. No interest was
payable.
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023 DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(iii) Subsidiaries and associates
Name of subsidiary
Dateline Fiji Pty Limited
Matai Holdings (Fiji) Ltd
Golden Phoenix Resources Limited
Golden Phoenix Australia Pty Ltd
Gunnison Gold Pty Ltd
Colosseum Mines Pty Ltd
Fossil Creek Mines LLC
CRG Mining LLC
Saguache Mining LLC
SLV Minerals LLC
Colosseum Rare Metals Inc.
ALSH LLC
Sooner Lucky Strike Mine LLC
Country of
Incorporation
Australia
Fiji
Australia
Australia
Australia
Australia
USA
USA
USA
USA
USA
USA
USA
Ownership
Interest (%)
30.6.22
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Ownership
Interest (%)
30.6.21
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
During the year ended 30 June 2021, Colosseum Mines Pty Ltd and Colosseum Rare metals Inc, were
incorporated on 24 March 2021 and 26 March 2021 respectively.
COMMITMENTS
24
(a) Operating Commitments
There were no operating commitments at year end
(b) Exploration and Evaluation Commitments
There were no exploration and evaluation commitments at year end.
25
SUBSEQUENT EVENTS
On 5 July 2023, the Company announced that it had executed a binding term sheet with Western Strontium to
acquire an 80% interest in the Argos Strontium Project located approximately 100 kilometers from its flagship
Colosseum Gold and Rare Earths project in San Bernardino, California, USA.
Acquisition Terms
Dateline and Western Strontium have agreed to establish a new entity (Newco) to hold the four patented
claims that comprise the Argos Strontium Project. The consideration payable to Western Strontium for the
80% interest that Dateline will own in Newco is as follows:
Shares & Options
• Five million ordinary shares in Dateline Resources Limited
• Ten million, three year unquoted options, allowing Western Strontium to purchase ordinary shares at 3
cents per share.
The above shares and options will be made available from Dateline’s existing share capacity under Listing Rule
7.1
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Cash Payments
• USD $100,000 payable 90 days from date of completion (First Payment Date);
• USD $150,000 on the date that is six months from the First Payment Date;
• USD $150,000 on the date that is 12 months from the First Payment Date;
• USD $150,000 on the date that is 18 months from the First Payment Date.
Western Strontium will maintain a 20% carried interest in the project via its 20% shareholding of Newco.
On 11 August 2023 the Company announced the issue of 28,571,428 fully paid ordinary shares raising
$600,000 (before costs) at $0.021 per new share and 5,714,286 accompanying unquoted options with an exercise
price of $0.03 with an expiry of 9 August 2026.
No other matter or event has arisen since 30 June 2023 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise disclosed in the Group’s
financial report.
26
CONTINGENT LIABILITIES
existed.
For the year ended 30 June 2023 and for the year ended 30 June 2022, the following contingent liabilities
There are contracted contingent liabilities in regard to Royalty Arrangements to the vendors of CRG Mining
LLC. (CRG). The vendors of CRG are entitled to receive royalty payments at a rate of US$50 for each ounce of
gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5
million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million is
to be paid which is included in the deferred consideration. (Refer note 13).
On the acquisition of Sooner Lucky Strike Mine there is a contingent liability in regard to Royalty
Arrangements to the vendors of ALSH LLC. (ALSH). The vendors of ALSH are entitled to receive royalty
payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the
acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an
aggregate minimum amount of US$2.5 million is to be paid which is included in the deferred consideration.
(Refer note 13).
As part of the restructuring for the conversion of the Long Term Loans (royalty payments) to a contingent
liability, a fee of $US500,000 is payable by Fossil Creek Mines LLC (FCM) to Park Creek Mineral
Management LLC (PCMM) on or before July 1, 2024. If FCM fails to pay US$500,000 to PCMM on or before
1 July, 2024, then Dateline Resources Limited will assume this contingent liability.
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Cash Payments
• USD $100,000 payable 90 days from date of completion (First Payment Date);
• USD $150,000 on the date that is six months from the First Payment Date;
• USD $150,000 on the date that is 12 months from the First Payment Date;
• USD $150,000 on the date that is 18 months from the First Payment Date.
Western Strontium will maintain a 20% carried interest in the project via its 20% shareholding of Newco.
On 11 August 2023 the Company announced the issue of 28,571,428 fully paid ordinary shares raising
$600,000 (before costs) at $0.021 per new share and 5,714,286 accompanying unquoted options with an exercise
price of $0.03 with an expiry of 9 August 2026.
No other matter or event has arisen since 30 June 2023 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise disclosed in the Group’s
financial report.
26
CONTINGENT LIABILITIES
For the year ended 30 June 2023 and for the year ended 30 June 2022, the following contingent liabilities
existed.
There are contracted contingent liabilities in regard to Royalty Arrangements to the vendors of CRG Mining
LLC. (CRG). The vendors of CRG are entitled to receive royalty payments at a rate of US$50 for each ounce of
gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5
million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million is
to be paid which is included in the deferred consideration. (Refer note 13).
On the acquisition of Sooner Lucky Strike Mine there is a contingent liability in regard to Royalty
Arrangements to the vendors of ALSH LLC. (ALSH). The vendors of ALSH are entitled to receive royalty
payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the
acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an
aggregate minimum amount of US$2.5 million is to be paid which is included in the deferred consideration.
(Refer note 13).
As part of the restructuring for the conversion of the Long Term Loans (royalty payments) to a contingent
liability, a fee of $US500,000 is payable by Fossil Creek Mines LLC (FCM) to Park Creek Mineral
Management LLC (PCMM) on or before July 1, 2024. If FCM fails to pay US$500,000 to PCMM on or before
1 July, 2024, then Dateline Resources Limited will assume this contingent liability.
49
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Royalties payable to the previous owner of Gunnison Property
During the year ended 30 June 2018 the Company acquired freehold land over the Gold Links property. The
agreement entitles the previous owner of this land to Royalty payments as detailed below:
The Company shall pay Royalties to the previous owner based on a percentage of Net Smelter Returns base
on the Gold Price per Ounce as follows:
Gold Price per Ounce
(USD)
Ownership Percentage of Net Smelter Returns
$1,000 and below
1.0%
$1,001 to 1,500
An Additional 0.1% for every $100 in excess of $1,000 up to $1,500
$1,501 to $2,000
2.0%
$2,001 to $5,500
2.0% plus additional 0.1% for every $100 in excess of $2,000 up to $5,500
$5,501 and above
7.0%
The percentage will be adjusted bi- annually if the total amount of gold produced over a 6 month period
is greater than one ounce per ton. The adjustment is calculated by multiplying the average Ownership
Percentage of Net Smelter returns during each 6 month period by the Gold Ratio. The Gold Ratio is the
ratio of the amount of ounces of gold produced verses the tonnes of ore mined and milled. The
maximum percentage payable is capped at 7%.
Minimum payment if no production occurs
If no production is under taken after 31 October 2018 the previous owner is entitled to US$15,000 per
calendar year if the following condition is met:
A commercial quantity (as determined by the previous owner’s project engineer and geologist) or
ore is available
Colosseum Gold Mine
In March 2021, the Company entered into an agreement with LAC Minerals (USA) LLC, a wholly owned
subsidiary of Barrick Gold Corporation to acquire the Colosseum Gold Mine, located in San Bernardino
County, California. Colosseum was originally discovered in the early 1970’s, with production of ~344,000
ounces of gold between 1988 and 1993 from two open pits. At the time of suspension of operations, the
gold price was at a cyclical low below $350/oz.
In October 2021 Dateline announced that all outstanding conditions precedent for the completion of the
acquisition had been fulfilled. As part of the transaction, Dateline has provided US$770,000 in
reclamation bonds to replace the Barrick bonds with the relevant authorities. At this time the Company
cannot reliably estimate the cost or timing of any remediation expenditure that may be required.
As part of the acquisition a further payment of US$1,500,000 to Barrick will be payable following
successful completion of a bankable feasibility study or commencement of site development for the
extraction of ore or sale of the properties. Barrick is also entitled to a 2.5% Net Smelter Return royalty
of all future production of any metals from the mine.
27 DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the financial
year.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25 REMUNERATION OF AUDITORS
(a) HLB Mann Judd Assurance (NSW) Pty Ltd
An audit or review of the financial report of the Company
(b) DFK Laurence Varnay Auditors Pty Ltd
An audit or review of the financial report of the Company
26 PARENT ENTITY INFORMATION
(a)
Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-Current liabilities
Total Liabilities
Net Assets
Equity
Issued equity
Reserves
Retained earnings
Total Equity
(b) Financial Performance
Profit/(Loss) for the year
Other comprehensive income
Total Comprehensive Income
30-Jun-23
30-Jun-22
$
$
-
-
60,000
60,000
54,750
54,750
-
-
30-Jun-23
30-Jun-22
$
20,649,313
28,245,150
48,894,463
7,616,609
1,007,219
8,623,828
40,270,635
$
10,063,826
27,819,600
37,883,426
12,941,467
928,730
13,870,197
24,013,229
57,321,342
3,146,400
45,524,865
3,247,896
(20,197,107)
(24,759,532)
40,270,635
24,013,229
(2,798,851)
(6,891,406)
7,361,276
4,562,425
-
(6,891,406)
(c) Guarantees Entered Into By The Parent Entity
No guarantees have been entered into by the parent entity in relation to the debts of its
subsidiaries.
(d) Commitments And Contingencies of the Parent Entity
There were no commitments and contingencies for the parent entity as at 30 June 2023
or 30 June 2022 other than that disclosed in notes 22 and 24.
28. ENTITIES ACQUIRED DURING THE YEAR
Year ended 30 June 2023 - NIL
Year ended 30 June 2022 - NIL
50
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25 REMUNERATION OF AUDITORS
(a) HLB Mann Judd Assurance (NSW) Pty Ltd
An audit or review of the financial report of the Company
(b) DFK Laurence Varnay Auditors Pty Ltd
An audit or review of the financial report of the Company
26 PARENT ENTITY INFORMATION
(a)
Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-Current liabilities
Total Liabilities
Net Assets
Equity
Issued equity
Reserves
Retained earnings
Total Equity
(b) Financial Performance
Profit/(Loss) for the year
Other comprehensive income
Total Comprehensive Income
30-Jun-23
$
30-Jun-22
$
-
-
60,000
60,000
54,750
54,750
-
-
30-Jun-23
$
20,649,313
28,245,150
48,894,463
7,616,609
1,007,219
8,623,828
40,270,635
57,321,342
3,146,400
(20,197,107)
40,270,635
30-Jun-22
$
10,063,826
27,819,600
37,883,426
12,941,467
928,730
13,870,197
24,013,229
45,524,865
3,247,896
(24,759,532)
24,013,229
(2,798,851)
7,361,276
4,562,425
(6,891,406)
-
(6,891,406)
(c) Guarantees Entered Into By The Parent Entity
No guarantees have been entered into by the parent entity in relation to the debts of its
subsidiaries.
(d) Commitments And Contingencies of the Parent Entity
There were no commitments and contingencies for the parent entity as at 30 June 2023
or 30 June 2022 other than that disclosed in notes 22 and 24.
28. ENTITIES ACQUIRED DURING THE YEAR
Year ended 30 June 2023 - NIL
Year ended 30 June 2022 - NIL
51
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023
105,187
(22,797)
1,503,600
4,123,385
1,608,787
4,100,588
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest expense
Administration expenses
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
29. RESTATEMENT OF COMPARATIVES - SHORT TERM LEASES
Note 29 (Continued)
Short term leases with an expiry of less than 1 year were taken up as at 30 June 2022.
The lease treatment of these short term leases have been corrected as at 30 June 2022.
The impact of the of the correction is as follows :
ORIGINAL
$
RESTATED
$
CHANGES
$
Notes to the Accounts
Note 3 - Segment Information
Segment Result-USA
Segment Result-Total
Segment Liabilities-USA
Segment Liabilities-Total
Note 6 - Administration expenses
Compliance and regulatory expenses
Total Administration expenses
Note 7 - Income Tax Expense
Loss from continuing operations
before income tax expense
Tax at the Australian tax rate of 25%
(taxable) in calculating
taxable income: Temporary
difference not brought to account
Unused tax losses
Tax effects of amounts which are not deductible
Note 11 - Plant & Equipment Land & Buildings
Carrying amount of plant & equipment
Note 12 - Exploration & Evaluation Expenditure
Note 15 - Loans
Non-current Other Loans
Total Loans
Note 17 - Reserves
Foreign Currency Translation Reserve
Total reserves
Note 18 - Earnings per share
Net (loss) per share attributable to ordinary
equity holders of the Company
Basic (loss) per share (cents)
ORIGINAL
RESTATED
CHANGES
$
$
$
(8,125,100)
(7,669,832)
(14,359,734)
(13,904,468)
32,446,335
31,842,621
29,134,174
28,530,460
101,490
4,100,588
124,287
4,123,385
(455,268)
(455,266)
3,312,161
3,312,161
(22,797)
(22,797)
(14,359,734)
(13,904,468)
(3,589,934)
(3,476,117)
(455,266)
(113,817)
3,589,937
13,184,191
3,476,117
13,070,375
113,820
113,816
43,559
-
13,052,149
13,008,708
43,559
43,441
(2,270,334)
(1,993,088)
548,385
825,631
(277,246)
(277,246)
(14,359,734)
(13,904,468)
(3.29)
(3.19)
(455,266)
(0.10)
land & buildings
18,114,172
18,122,570
(8,398)
Carrying Amount of exploration expenditure
15,465,849
15,457,451
8,398
(Loss) from continuing operations
before income tax
(Loss) after continuing operations
before income tax
Foreign Currency Translation Reserve
Total comprehensive (loss)
for the period
(Loss) for the year attributable to
Owners of the Company
Total comprehensive (Loss) for the year attributable
to Owners of the Company
Basic & diluted loss per share-cents/share
Consolidated Statement of Financial Position
Plant & equipment land & buildings
Exploration & evaluation expenditure
Right-of-use assets
Total Non-Current Assets
TOTAL ASSETS
Current lease liabilities
Long term loan
Non-current lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated Statement of Changes of Equity
Accumulated losses as at 30 June 2022
Foreign currency reserve as at 30 June 2022
Balance as at 30 June, 2022
(14,359,734)
(13,904,468)
(455,266)
(14,359,734)
(13,904,468)
(455,266)
(1,623,346)
(1,221,719)
(401,627)
(15,983,080)
(15,126,187)
(856,893)
(14,359,734)
(13,904,468)
(455,266)
(14,359,734)
(13,904,468)
(455,266)
(3.29)
(3.19)
(0.10)
18,114,172
15,465,849
3,018,444
37,716,190
41,698,950
1,960,983
13,052,149
1,800,223
15,700,443
31,842,620
9,856,330
548,385
(37,678,905)
9,856,330
13,008,708
18,122,570
15,457,451
(8,398)
8,398
438,796 2,579,648
35,136,542 2,579,648
39,119,302 2,579,648
86,185 1,874,798
43,441
406,301 1,393,922
14,263,080 1,437,363
28,530,460 3,312,160
(732,512)
10,588,842
(277,246)
825,631
(455,266)
(37,223,639)
(732,512)
10,588,842
(37,678,905)
(2,270,334)
9,856,330
(37,223,639)
(1,993,088)
10,588,842
(455,266)
(277,246)
(732,512)
52
46 | P a g e
47 | P a g e
ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023 DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Note 29 (Continued)
Notes to the Accounts
Note 3 - Segment Information
Segment Result-USA
Segment Result-Total
Segment Liabilities-USA
Segment Liabilities-Total
Note 6 - Administration expenses
Compliance and regulatory expenses
Total Administration expenses
Note 7 - Income Tax Expense
Loss from continuing operations
before income tax expense
Tax at the Australian tax rate of 25%
Tax effects of amounts which are not deductible
(taxable) in calculating
taxable income: Temporary
difference not brought to account
Unused tax losses
Note 11 - Plant & Equipment Land & Buildings
Carrying amount of plant & equipment
land & buildings
Note 12 - Exploration & Evaluation Expenditure
Carrying Amount of exploration expenditure
Note 15 - Loans
Non-current Other Loans
Total Loans
Note 17 - Reserves
Foreign Currency Translation Reserve
Total reserves
Note 18 - Earnings per share
Net (loss) per share attributable to ordinary
equity holders of the Company
Basic (loss) per share (cents)
ORIGINAL
$
RESTATED
$
CHANGES
$
(8,125,100)
(14,359,734)
32,446,335
31,842,621
(7,669,832)
(13,904,468)
29,134,174
28,530,460
101,490
4,100,588
124,287
4,123,385
(455,268)
(455,266)
3,312,161
3,312,161
(22,797)
(22,797)
(14,359,734)
(3,589,934)
(13,904,468)
(3,476,117)
(455,266)
(113,817)
3,589,937
13,184,191
3,476,117
13,070,375
113,820
113,816
18,114,172
18,122,570
(8,398)
15,465,849
15,457,451
8,398
43,559
13,052,149
-
13,008,708
43,559
43,441
(2,270,334)
548,385
(1,993,088)
825,631
(277,246)
(277,246)
(14,359,734)
(3.29)
(13,904,468)
(3.19)
(455,266)
(0.10)
53
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DATELINE RESOURCES Notes to the Financial StatementsFor the Year ended 30 June 2023 DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Note 29 (Continued)
Note 19 - Right of Use Assets (Non-Current)
Mining equipment-right of use
Less accumulated depreciation
Total
Motor Vehicles - right of use
Less: Accumulated depreciation
Total
Note 20 - Lease Liabilities
Current Lease liabilities
Non-current liabilities
Note 21 - Financial Risk Management
Lease liabilities
Net exposure
ORIGINAL
$
RESTATED
$
CHANGES
$
2,964,031
(327,180)
2,636,851
607,769
(226,176)
381,593
1,960,983
1,800,223
-
-
-
619,277
(180,481)
438,796
86,185
406,301
2,964,031
(327,180)
2,636,851
(11,508)
(45,695)
(57,203)
1,874,798
1,393,922
3,761,206
(28,080,387)
492,486
(25,047,880)
3,268,720
(3,032,507)
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
In the Directors’ opinion:
a) the financial statements and notes set out on pages 12 to 48 are in accordance with the Corporations Act
2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
for the financial year ended on that date, and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Equivalent Chief Executive Officer and the Equivalent
Chief Financial Officer required by Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board of Directors
Mr Mark Johnson
Non-Executive Chairman
28 September 2023
54
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ANNUAL REPORT 2023Notes to the Financial StatementsFor the Year ended 30 June 2023 Directors’ Declaration
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
In the Directors’ opinion:
a) the financial statements and notes set out on pages 12 to 48 are in accordance with the Corporations Act
pages 18 to 54
2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
for the financial year ended on that date, and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Equivalent Chief Executive Officer and the Equivalent
Chief Financial Officer required by Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board of Directors
Mr Mark Johnson
Non-Executive Chairman
28 September 2023
55
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DATELINE RESOURCES Independent Auditor’s Report
56
Dateline Resources Limited ABN: 63 149 105 653 Independent Auditor’s Report to the shareholders of Dateline Resources Limited Report on the Audit of the Financial Report Opinion We have audited the Financial Report of Dateline Resources Limited (the Company) and Controlled Entities (the Group), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the directors' declaration. In our opinion: a) The accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2023 and of their financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ANNUAL REPORT 2023 Independent Auditor’s Report
57
Emphasis of Matter - Material Uncertainty Regarding Going Concern We draw attention to Note 2(g) in the Financial Report, which indicates that the Group incurred a net loss of $11,123,199 (2022: $13,904,468) during the year ended 30 June 2023 and, as of that date, the current liabilities exceeded its current assets by $8,906,248 (2022: deficit $10,284,620). As stated in Note 2(g), these events, or conditions, along with other matters as set forth, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the year ended 30 June 2023. 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. Apart from above the key audit matters are: Key audit matters How our audit addressed the key audit matters Going concern Refer to Note 2(g) We identified going concern as a key audit matter due to the significant level of judgement required in evaluating the Group's assessment of going concern and the events or conditions that may cast significant doubt on their ability to continue as a going concern as disclosed in Note 2(g). The Directors have determined that the going concern basis of accounting is appropriate in preparing the financial report based on cash flow projections which included a number of assumptions and high level of judgements. Should the company not be able to execute its corporate strategy there will be a material uncertainty casting significant doubt on the Group’s ability to continue as a going concern. The levels of uncertainty was critically scrutinised, as it related to the Group’s ability to continue as a going concern, within the assumptions and judgements, concentrating on: • capital raising of $600,00 in July 2023;•$3,076,923 from sale of Gunnison GoldPty Ltd during the forecast period;Our audit procedures in relation to going concern included but were not limited to: •we critically analysed The Group'sforecasts for the next 12 months fromthe date of signing the financialstatements by assessing:-Recoverability of remaining proceedsfrom sale of the Gunnison Gold Pty Ltdagainst executed binding agreementwith MW Sorter LLC;-We reviewed the financial position andassessed a number of key ratios;-Reviewed FY 2023 YTD cash inflowsand outflow results against forecast;and-Reviewed subsequent bankstatements upto date of signing tovalidate assumptions made in forecast.DATELINE RESOURCES Independent Auditor’s Report
58
Key audit matters How our audit addressed the key audit matters • Additional funding raised through future fundraising from financial institutions and the market; and • Issuing equity to settle future liabilities, if appropriate. Option Valuation – Note 17 The Group often provides benefits to Directors and others via share-based payment transactions, whereby the Directors or others render services and receive shares or the option to purchase shares. These share-based payment transactions are classified by the Group as equity settled share-based payment transactions. This is a key audit matter because the expense recognised incorporates a judgemental value. Black Scholes model’s include inputs which require judgement. The share-based payment expenses were split between share-based payment expenses / reserves or option valuation expenses / reserves, depending on their type as requested by management, however, are all captured under AASB 2 Share Based Payments. Options issued to directors were valued by management using a Black Scholes model, and the vesting periods were determined by the directors. These options were accounted for in the option valuation reserve. Limited recourse share purchase loans, which were accounted for as options under AASB 2 Share Based Payments were valued with the assistance of an expert valuer who also used a Black Scholes model. The limited recourse share purchase loans are within the share-based payments reserve. The impact on the financial report for the year ended 30 June 2023 reflected a profit or loss charge of $189,897 to option valuation expense. Our audit procedures included but were not limited to: • Only options were issued in FY 2023 so obtaining agreements for options and assessing the accounting treatment in conjunction with the terms; • Considering the design and implementation of controls surrounding review of valuations at the Board level • Obtaining management or expert valuation using Black Scholes models and supporting the inputs in the calculations to publicly available data; • Considering the objectivity, competence and capabilities management expert used; and • Examining the disclosures made in the financial report. ANNUAL REPORT 2023 Independent Auditor’s Report
59
Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2023 but does not include the financial report and 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 Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 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 the 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. DATELINE RESOURCES Independent Auditor’s Report
60
Auditor's Responsibilities for the Audit of the Financial Report (Cont’d) • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 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 on pages 8-10 of the Directors' Report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Dateline Resources Limited, for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. ANNUAL REPORT 2023 Independent Auditor’s Report
61
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. DFK Laurence Varnay Auditors Pty Ltd Faizal Ajmat Director Sydney Dated: 28th day of September 2023 DATELINE RESOURCES Additional ASX Information
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023
The following additional information was applicable as at 5 October 2023.
1. Number of Holders of each class of equity security and the voting rights attached:
Class of Security
Ordinary Shares
Unlisted Options
No. of Holders Voting Rights Attached
1,234
316
Each shareholder is entitled to one vote per share held
N/A
There are a total of 885,442,837 ordinary fully paid shares on issue. There 70,327,821 shares subject to
voluntary escrow.
2. Distribution schedule of the number of holders of fully paid ordinary shares is as follows:
Distribution
of Holders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Number of Fully Paid
Ordinary Shareholders
135
106
110
441
442
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those who shareholding is valued at less than
$500.
• There are 553 shareholders who hold less than a marketable parcel of shares.
• The number of fully paid ordinary shareholdings held in less than marketable parcels is 5,626,210.
4. Substantial shareholders
As at report date there are four substantial shareholders.
5. Share buy-backs
There is no current on-market buy-back scheme.
62
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023
6. Top 20 Shareholders
and are listed below:
Holder Name
The top 20 largest fully paid ordinary shareholders together held 65.78% of the securities in this class
1 MR MARK RODERICK GRANGER JOHNSON
2 SOUTHERN CROSS EXPLORATION NL
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4 MR STEPHEN BAGHDADI
5 BOND STREET CUSTODIANS LIMITED
6 ONE MANAGED INVESTMENT FUNDS LIMITED
7 CITICORP NOMINEES PTY LIMITED
8 MUTUAL TRUST PTY LTD
9 MR SIMON WILLIAM TRITTON
10 TORNADO NOMINEES PTY LTD
11 JCR INVESTMENTS CO P/L
12 AUSTRALIAN EXECUTOR TRUSTEES LIMITED
13 BNP PARIBAS NOMS PTY LTD
14 HANIAN INVESTMENTS PTY LTD
15 BUTTONWOOD NOMINEES PTY LTD
16 BNP PARIBAS NOMINEES PTY LTD
17 MR KENNETH JOSEPH HALL
18 MR KEVIN STEPHEN DAVIS & MRS ANNETTE MARIA DAVIS
19 BICKHAM COURT SUPERANNUATION PTY LTD
20 THE CWT SUPER PTY LTD
Total
Total Issued Capital
7. Unquoted Equity Securities
The Company has no listed unquoted equity securities on issue
8.
Interest in Mining Licences
Holding
121,503,202
95,832,698
53,646,364
49,494,119
17,128,333
14,642,857
13,253,148
12,314,644
11,250,000
10,516,598
10,000,000
10,000,000
9,858,556
9,495,000
9,400,718
7,701,318
6,500,000
6,311,500
%
13.72%
10.82%
6.06%
5.59%
1.93%
1.65%
1.50%
1.39%
1.27%
1.19%
1.13%
1.13%
1.11%
1.07%
1.06%
0.87%
0.73%
0.71%
5,711,259
4,978,934
479,539,248
885,442,837
0.65%
0.56%
54.16%
100.00%
The Company is an exploration entity, below is a list of its interest in licences, where the licences are
situated and the percentage of interest held.
Project
Description / Number
Ownership
Location
Gold Links Permitted Mine
36 Patented Claims
Gold Links Permitted Mine
20 Unpatented Claims
Lucky Strike Permitted Mine
32 Patented Claims
Lucky Strike Permitted Mine
75 Unpatented Claims
Raymond & Carter Permitted Mine
81 Patented Claims
Raymond & Carter Permitted Mine 6 Unpatented Claims
Colosseum Permitted Mine
3 Patented Claims
Colosseum Permitted Mine
80 Unpatented Claims
Udu
Udu
SPL1387
SPL1396
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
California USA
California USA
Fiji
Fiji
ANNUAL REPORT 2023
Additional ASX Information
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023
6. Top 20 Shareholders
The top 20 largest fully paid ordinary shareholders together held 65.78% of the securities in this class
and are listed below:
Holder Name
1 MR MARK RODERICK GRANGER JOHNSON
2 SOUTHERN CROSS EXPLORATION NL
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4 MR STEPHEN BAGHDADI
5 BOND STREET CUSTODIANS LIMITED
6 ONE MANAGED INVESTMENT FUNDS LIMITED
7 CITICORP NOMINEES PTY LIMITED
8 MUTUAL TRUST PTY LTD
9 MR SIMON WILLIAM TRITTON
10 TORNADO NOMINEES PTY LTD
11 JCR INVESTMENTS CO P/L
12 AUSTRALIAN EXECUTOR TRUSTEES LIMITED
13 BNP PARIBAS NOMS PTY LTD
14 HANIAN INVESTMENTS PTY LTD
15 BUTTONWOOD NOMINEES PTY LTD
16 BNP PARIBAS NOMINEES PTY LTD
17 MR KENNETH JOSEPH HALL
18 MR KEVIN STEPHEN DAVIS & MRS ANNETTE MARIA DAVIS
19 BICKHAM COURT SUPERANNUATION PTY LTD
20 THE CWT SUPER PTY LTD
Total
Total Issued Capital
7. Unquoted Equity Securities
The Company has no listed unquoted equity securities on issue
Holding
121,503,202
95,832,698
53,646,364
49,494,119
17,128,333
14,642,857
13,253,148
12,314,644
11,250,000
10,516,598
10,000,000
10,000,000
9,858,556
9,495,000
9,400,718
7,701,318
6,500,000
6,311,500
%
13.72%
10.82%
6.06%
5.59%
1.93%
1.65%
1.50%
1.39%
1.27%
1.19%
1.13%
1.13%
1.11%
1.07%
1.06%
0.87%
0.73%
0.71%
5,711,259
4,978,934
479,539,248
885,442,837
0.65%
0.56%
54.16%
100.00%
8.
Interest in Mining Licences
The Company is an exploration entity, below is a list of its interest in licences, where the licences are
situated and the percentage of interest held.
Description / Number
36 Patented Claims
20 Unpatented Claims
32 Patented Claims
75 Unpatented Claims
81 Patented Claims
Project
Gold Links Permitted Mine
Gold Links Permitted Mine
Lucky Strike Permitted Mine
Lucky Strike Permitted Mine
Raymond & Carter Permitted Mine
Raymond & Carter Permitted Mine 6 Unpatented Claims
Colosseum Permitted Mine
Colosseum Permitted Mine
Udu
Udu
3 Patented Claims
80 Unpatented Claims
SPL1387
SPL1396
Ownership
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Location
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
California USA
California USA
Fiji
Fiji
63
DATELINE RESOURCES
ASX:DTR
W
A
T
E
datelineresources.com.au
Level 29, 2 Chifley Square, Sydney NSW 2000
+61 (02) 8231 6640
info@datelineresources.com.au