De Grey Mining 2024 Annual Report | 1
TABLE OF CONTENTS
Corporate Information
2
Chair’s Letter
3
Managing Director’s Report and Review of Operations
7
Sustainability Report
22
Directors’ Report
45
Remuneration Report
53
Audit Independence Declaration
82
Consolidated Statement of Comprehensive Income
83
Consolidated Statement of Financial Position
84
Consolidated Statement of Changes in Equity
85
Consolidated Statement of Cash Flows
86
Notes to the Consolidated Financial Statements
87
Consolidated Entity Disclosure Statement
122
Directors’ Declaration
123
Audit Report
124
ASX Additional Information
129
Annual Mineral Resources and Ore Reserve Statement
131
Schedule of Interests in Mining Tenements
138
CORPORATE INFORMATION
Directors
Simon Lill (Independent Non-Executive Chair)
Glenn Jardine (Managing Director)
Peter Hood AO (Lead Independent Non-Executive Director)
Andrew Beckwith (Non-Executive Director)
Paul Harvey (Independent Non-Executive Director)
Emma Scotney (Independent Non-Executive Director)
Chief Financial Officer
Peter Canterbury
Company Secretary
Sarah Standish (appointed 19 February 2024)
Craig Nelmes (resigned 1 March 2024)
Registered Office and
Principal Place of Business
Ground Level
2 Kings Park Road
WEST PERTH WA 6005
Telephone: +61 (0)8 6117 9328
Email: admin@degreymining.com.au
Web: www.degreymining.com.au
Share Registry
Automic Group
Level 5
191 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Postal Address
PO Box 84,
West Perth WA 6872
Auditors
Ernst & Young
11 Mounts Bay Road
PERTH WA 6000
Stock Exchange Listing
Australian Securities Exchange (ASX code DEG)
Frankfurt Stock Exchange (FRA code WKN 633879)
De Grey Mining 2024 Annual Report | 4
LETTER FROM THE CHAIR
What a great time to be in gold.
This letter is often time for my annual reflection – from where we have come from, and what the next year looks
like.
Through the exciting last four-and-a-half years since the Hemi gold discovery we have been waiting for gold to
have its day in the sun after seeing investment funds flowing into cryptocurrency, medical marijuana, lithium and
other critical metals. I am happy to say that at a price of around A$3,700 per ounce, that day now appears to be
here.
Gold, as we have seen with the other commodities, will have its cycles and while gold bulls will be suggesting this
leg may still have some way to run, we should caution against hubris. It is a mantra that I regularly offer to the De
Grey team – be proud and grateful for the quality of the Hemi Gold Project on which we are working. However do
not lose sight of the hard yards, or good fortune, which bought De Grey to where it is today.
We remain focussed on bringing Hemi into production and achieving the share price re-rating which will come
with transitioning into commercial operations. Upcoming de-risking events around project financing and
approvals should help move us further along the Lassonde Curve and closer to this objective.
My constant reflection is how fortunate I personally have been to have been involved with such a discovery. I have
many people to thank for that, and will not name them all, but perhaps in the special mentions category:
•
Andy Beckwith and his special geological team, Phil Tornatora and Allan Kneeshaw (with many others
who could be named).
•
Craig Nelmes who commenced with me at De Grey in 2013 as Company Secretary and without whom I
genuinely doubt the Company would still be here. Craig moved on during the year and well knows the
gratitude I have for his time at De Grey.
We have moved rapidly since the discovery of Hemi and completed extensive drilling to properly define the
mineralisation. We have spent around $250 million on drilling since our initial aircore holes at Hemi released on
17 December 2019, delivering a Mineral Resource Estimate currently at 12.7M ounces. We have also delivered a
Definitive Feasibility Study underpinned by a high confidence 6 million ounce Ore Reserve. Again - testament to
the quality of the Project which we are fortunate to own.
We believe we have considerable scope for resource growth which aligns with our KPI stretch targets for
Management last year of resource growth of 4 million ounces in two years and 6 million ounces in three years.
Exploration continues across the Project with interesting results still being achieved.
The Board is committed to ongoing resource growth as we focus on continuing to pursue ways to increase the
value of the Project throughout the pre-development and construction phases.
During the year the Company achieved many important milestones, all of which will be covered in more detail in
the Managing Director’s Report:
1.
Grant of Mining Leases for a 21-year period over the key Hemi resources and immediate surrounds (13
September 2023). This of course could not occur without agreement with the Traditional Owner Group, the
Kariyarra People, which was executed in December 2022. We thank the Kariyarra People and look forward to
a long and positive relationship.
2.
Release of the Hemi DFS (16 October 2023) contemporaneously with the capital raising of $300 million at a
price of $1.05 per share. We are not unique in presenting comprehensive project studies, but it is a massive
task for all involved and acknowledgment should go to our Hemi Project Director, Peter Holmes, the retiring
Rod Smith and the rest of their team.
De Grey Mining 2024 Annual Report | 5
3.
During May 2024 we launched an underwritten $600 million raise which certainly gave cause for reflection to
a previous time when the Company had only $100,000 in the bank! Thanks and recognition must be given
here to our two Joint Lead Managers, Canaccord Genuity and Argonaut. Both have supported us through
practically all of our raisings since discovery, have worked well together, and very deliberately set about
building a register that would work with us into the future.
This is also an appropriate place to say thank you to all of our key shareholders who contributed to our equity
raisings and particularly our major shareholder, Gold Road Resources Limited. Gold Road has contributed a
total of $140 million in support of the Project and Company through the period since it emerged as a
substantial shareholder.
4.
The May 2024 equity raise leads into Project Financing and whilst that is not yet evidenced by final signatures,
we are encouraged by the number of interested participants which have presented with Credit Approved
Term Sheets. In addition, we have received strong interest two Government bodies, the Northern Australia
Infrastructure Facility and Export Finance Australia. NAIF have approved a $150M loan to support the Project.
Major standalone gold projects with longevity and robust economics are not presented to the finance sector
very often so it does not surprise that there has been strong demand for the debt component of the financing.
5.
We made significant process on environmental approvals during the year. However, it is a lengthy process
which every mining project needs to go through. Delays can be frustrating to shareholders but we have a
strong team on this exercise who remain hopeful we will make significant progress by the end of the calendar
year to achieve our approvals. This would allow us to move towards a Final Investment Decision and is likely
to be the last key outstanding matter before the Project construction is officially underway.
The Company has effectively committed to the Project through the commencement of ordering of long lead
items in order to maintain schedule.
6.
Another Project commitment has been towards employment as we build out a team to take the Company
forward. Key appointments during the year have been Neil Foster (Chief Sustainability and Risk Officer), Sarah
Standish (General Counsel and Company Secretary) and most recently Geoff Fenton (GM Operations).
All have critical roles. Geoff has been appointed two plus years out from operations to ensure operational
readiness for commissioning and commercial operations.
We have also been fortunate to secure Ivan Mullany’s knowledge as the Chair of our Project Committee –
Ivan has had a long experience in North America with construction, commissioning and operations of
substantial gold projects. His knowledge will well complement that of the Board and Hemi Project Director,
Peter Holmes.
The Board has undergone a further review of its practices and composition. At the time of writing outcomes have
not been determined, but we remain conscious of expectations of the Corporate Governance Principles.
At a Board level we have continued to build and refine our governance practices while ensuring we remain agile
as the Company continues to grow. A specialist external consultancy has also been engaged to complete a review
to ensure our Board composition is optimised for the upcoming transformation of the Company. The review has
canvassed the views of our executive team and will address questions of Board skills, independence, diversity and
future succession. At the time of this report we are not meeting our gender diversity target of 30% for Board
composition and expect to address this in FY25.
At last year’s Annual General Meeting of De Grey shareholders we received a proportion of voting against certain
resolutions in line with proxy advisor recommendations. This involved matters related to remuneration, Board
independence and diversity which we are addressing. Remuneration is dealt with in detail elsewhere in this report
by the Chair of our Remuneration Committee, Mr Peter Hood. We are working on more specificity with
remuneration resolutions and STI/LTI rewards.
De Grey Mining 2024 Annual Report | 6
We have a very engaged Board which has been functioning well for De Grey and its shareholders. Personally I do
not believe that a Board’s decision making should be constrained simply by governance principles and I can assure
shareholders we are making our decisions with their best interests at the front of mind.
I cannot thank the long list of people who have contributed to development of Hemi to date enough.
Glenn Jardine continues to manage the Project and grow the team as we move forward into the construction
phase of Hemi. There is a lot of activity for he and our CFO, Peter Canterbury and the Board thanks them both.
The list of thanks also includes all De Grey staff, both on site and in Perth office, my fellow Directors, all contractors,
pastoral holders, Traditional Owner Groups, and local Shires.
We hope for more exploration excitement in the year ahead – but more importantly we look to environmental
approvals, commencement of Project works and successful implementation of Project schedules and budgets.
Yours sincerely,
Simon Lill
Independent Non-Executive Chair
De Grey Mining 2024 Annual Report | 8
MANAGING DIRECTOR’S
REPORT AND REVIEW OF
OPERATIONS
It is my pleasure to provide an update to you on activities in Financial
Year 2024 and our priorities for the upcoming year. In my report to
you last year I outlined the following objectives for the Company and
the Hemi Gold Project (Hemi or Project) in the period:
•
Completion and release of the Definitive Feasibility Study
(DFS) including an updated reserve capable of supporting a
minimum production rate of over 500,000 ounces a year;
•
Increase near surface and depth extensions at Hemi through
targeted resource definition drilling;
•
Continue to grow resources at the Project outside of Hemi;
•
Progress regional exploration to support a potential western
regional concentrator plant including the recently acquired
exploration rights on the Egina Joint Venture (JV) earn-in
with Novo Resources;
•
Increase production potential by completing a Scoping
Study for the development of the Regional deposits at Hemi
including a new concentrator in the west of the Project;
•
Progress environmental approvals to complete the Project
approval process;
•
Complete detailed engineering and begin early works and
construction activities; and
•
Finalise Credit Approved term sheets with banks at a level
capable of funding the development of Hemi and allow for
Final Investment Decision.
De Grey Mining 2024 Annual Report | 9
Figure 1: Hemi Gold Project showing Hemi and Hemi Regional deposits
Again, I am proud to report that the De Grey team achieved or substantially completed all of these goals and we
have positioned the business well for the upcoming development of Hemi (Figure 1).
Our achievements in FY24 included:
•
Release of the Hemi DFS in September 2023 which demonstrated a truly Tier 1 gold project with
production scale, low operating costs and a strong commercial case;
•
An updated 6 million ounce Hemi Ore Reserve with a grade of 1.5g/t Au within optimised pit shells;
•
An updated Mineral Resource Estimate in November 2023 which saw Hemi grow to 10.5 million ounces
with strike and depth extensions to Diucon and Eagle;
•
The granting of the Mining Lease for Hemi covering the Hemi deposits, proposed mining area and
processing plant site;
•
Successful completion of two major equity capital raisings which collectively raised approximately $900
million (before costs);
•
The receipt of credit approved term sheets from a syndicate of domestic and offshore commercial banks
for a $1 billion debt facility and $130 million cost overrun facility;
•
Significant progress on the Underground Mining Concept Study and the Regional Scoping Study, the
latter being released in the September quarter 2024 which supports further work on pathways to
enhance the Hemi DFS production profile;
•
Promising Resource Extension drilling at Hemi which will support a further update to the Hemi Mineral
Resource in the second half of Calendar Year 2024;
•
Advancement of the drilling of Regional targets across our 100% owned tenure and the Egina JV which
will support future Resource upgrades and potential future new discoveries;
•
Signing of an Option Agreement to acquire the Ashburton Gold Project which has a reported 1.44
million ounce Mineral Resource with potential to be processed at Hemi;
•
Continued development of our team with the appointment of key roles in the Projects team and senior
corporate positions within the business;
De Grey Mining 2024 Annual Report | 10
•
Constructive engagement with State and Federal environmental regulators in relation to final approvals
to support the commencement of construction at Hemi;
•
Preparation for construction through the completion of detailed engineering and early works where
permits allow;
•
The award of several of the first major contracts for the Project with tendering processes well advanced
for the award of key contracts, including for the Hemi processing plant and mining contract, during
FY25; and
•
Continued strong relationship with our stakeholders including the Kariyarra people.
Since completing the Hemi DFS in September 2023, we have continued to add value to the Project and this will
remain our objective through the construction phase. We have allocated an appropriate level of dedicated internal
resourcing to value adding activities such as Regional exploration, Project studies and Business Development, all
of which have borne fruit during FY24. These activities are all ultimately directed towards improving the production
profile outlined in the Hemi DFS in terms of higher annual production, lower operating costs and longer mine life.
The exploration upside which still exists across our provincial scale tenement holding and the highly strategic
processing facility we are building at Hemi give us confidence in the ability to continue to build value for our
shareholders in the years ahead, even before the expected re-rating when we reach commercial gold production.
Completion of the project financing, engineering, tendering, procurement and recruitment workstreams have
been planned to align with the earliest expected timing for the receipt of regulatory approvals. This has given us
sufficient scope to complete this work thoroughly and to a high standard which will help de-risk the upcoming
Project execution.
Hemi Definitive Feasibility Study
Following extensive exploration, Resource drilling and technical
studies, we released the Hemi DFS in September 2023. The key
outcomes of this DFS confirmed Hemi as a globally significant Tier
1 gold project and presents a commercially attractive development
opportunity, with significant upside. I would like to extend my
gratitude to the De Grey team, including our external consultants,
for their efforts in completing the DFS to a high standard which
has been widely acknowledged.
A summary of the initial physical and financial evaluation of the
Project is shown in Table 1. Full details of the DFS can be reviewed
in the covering announcement and Executive Summary released to
the ASX on 28 September 2023.
I would like to extend
my gratitude to the De
Grey team, including
our external
consultants, for their
efforts in completing the
DFS to a high standard
which has been widely
acknowledged.
De Grey Mining 2024 Annual Report | 11
Table 1: Production, Financial Outcomes and Economic Assumptions
Key Production Outcomes
Unit
PFS
DFS
Production Sources
Hemi + Regionals
Hemi
Evaluation Period
Years
13.6
12.0
Ore Tonnes Mined
Mt
136
122
Strip Ratio – Hemi
waste: ore
6.1:1
6.6:1
Ore Processing Rate (nameplate)
Mtpa
10.0
10.0
Average Processed Grade – evaluation period
g/t Au
1.6
1.5
Average Processed Grade – Years 1 to 10
g/t Au
1.8
1.7
Average Metallurgical Recovery
%
93.6
93.5
Average Gold Production - First 5 Years
koz pa
550
553
Average Gold Production - First 10 years
koz pa
540
530
Total Recovered Gold
Moz
6.4
5.7
Hemi Contribution
%
83
100
Reserve Contribution
%
80
99
Key Financial Outcomes
Unit
PFS
DFS
Gold Price
A$/oz
2,400
2,700
All In Sustaining Costs (AISC)
Average first 5 years
A$/oz
1,220
1,229
Average first 10 years
A$/oz
1,280
1,295
Free Cash Flow (Evaluation Period) Post-tax
A$ billion
4.2
4.5
EBITDA (Evaluation Period)
A$ billion
7.1
7.9
Payback Period Post-tax
Years
1.8
1.8
Net Present Value (NPV5%) Post-tax
A$ billion
2.7
2.9
Internal Rate of Return (IRR) Post-tax
%
41
36
Total Pre-Production Capital Costs
A$ million
1,053
1,345
Key Environmental and Social (ES) Statistics
LOM Total Economic Value Add
A$ billion
11.2
10.8
Carbon intensity
t.CO2/ozpa
0.6 – 0.3
0.79 – 0.49
The DFS and accompanying updated Hemi Probable Ore Reserve of 121Mt at 1.5g/t Au for 6.0Moz (Table 2) were
based on the June 2023 MRE (JORC 2012) released on 15 June 2023 as shown in Table 2.
Table 2: Hemi Ore Reserve#
Deposit
Proven
Probable
Total
Mt
Au g/t
koz
Mt
Au g/t
koz
Mt
Au g/t
koz
Aquila/Crow
-
-
-
24.7
1.6
1,259
24.7
1.6
1,259
Brolga
-
-
-
36.5
1.6
1,829
36.5
1.6
1,829
Diucon
-
-
-
26.6
1.6
1,383
26.6
1.6
1,383
Eagle
-
-
-
13.0
1.4
598
13.0
1.4
598
Falcon
-
-
-
20.0
1.4
932
20.0
1.4
932
Total Hemi
-
-
-
120.8
1.5
6,002
120.8
1.5
6,002
The rounding in the above tables is an attempt to represent levels of precision implied in the estimation process and apparent errors of summation may result
from the rounding.
# Refer to the Appendix of this document for details including JORC Table 1 disclosures
The DFS production profile comprises 99% of Ore Reserves from Hemi. The remaining 1% comprises Inferred
Resources that are incidental to open pit mining.
De Grey Mining 2024 Annual Report | 12
The DFS mine plan comprises open pit mining production from the Hemi deposits of Aquila, Brolga, Crow, Diucon,
Eagle and Falcon (Figure 2). The Hemi Regional deposits were included in the PFS but excluded from the DFS
physical and financial metrics following the growth and increased JORC confidence of the Hemi deposits in the
June 2023 MRE. All the Hemi deposits are located within 4km of the proposed processing plant site.
Figure 2: Hemi Pit Shell Outlines
The preferred comminution circuit comprises primary and secondary crushing, high pressure grinding roller
(HPGR) and ball mills followed by flotation, pressure oxidation (POx) and cyanide leaching. Similar comminution
circuits are used in large scale gold projects. Hemi ore has the advantage of generating a low (8%) mass pull
sulphide concentrate as feed to the POx circuit. This reduces the POx throughput to 0.8Mtpa compared with the
overall plant throughput rate of 10Mtpa.
Figure 3: Hemi Process Plant Layout
De Grey Mining 2024 Annual Report | 13
Mineral Resource Upgrade
Drilling during the period continued to add to the Hemi Mineral Resource Estimate (MRE) and support future
upgrades. In November 2023 the Hemi MRE increased by approximately 1Moz to build the Global Project MRE to
296Mt @ 1.3g/t Au for 12.7Moz (Table 3). The MRE for Hemi increased by 1Moz to 255Mt at 1.3g/t Au for 10.5Moz,
mainly from the Eagle and Diucon deposits. All the Hemi deposits are open at depth, and several remain open
along strike.
Table 3: Hemi - Mineral Resource Estimate (JORC 2012) by deposit, November 2023
Deposit
Indicated
Inferred
Total
Mt
Au g/t
koz
Mt
Au g/t
koz
Mt
Aug/t
koz
Aquila
12.7
1.5
631
7.2
1.2
283
19.9
1.4
913
Brolga
46.0
1.3
1,982
16.2
1.0
525
62.2
1.3
2,507
Crow
24.3
1.1
874
7.6
1.2
288
31.9
1.1
1,162
Diucon
37.1
1.3
1,584
20.3
1.4
918
57.4
1.4
2,502
Eagle
19.7
1.2
751
25.5
1.4
1,171
45.2
1.3
1,922
Falcon
26.0
1.3
1,056
12.0
1.0
393
37.9
1.2
1,449
Total Hemi 165.8
1.3
6,878
88.8
1.3
3,577
254.5
1.3
10,456
Note: 0.3g/t Au cut-off above 390m depth, 1.0g/t Au cut-off below 390m depth, assays to 7 November 2023. Differences may occur due to rounding.
Table 4: Hemi - Mineral Resource Estimate (JORC 2012) by depth, November 2023
Depth
Indicated
Inferred
Total
Mt
Au g/t
koz
Mt
Au g/t
koz
Mt
Au g/t
koz
0 – 390m
165.3
1.3
6,859
61.0
1.1
2,210
226.2
1.2
9,068
Below 390m
0.5
1.2
20
27.8
1.5
1,368
28.3
1.5
1,388
Total Hemi
165.8
1.3
6,878
88.8
1.3
3,577
254.5
1.3
10,456
Note: 0.3g/t Au cut-off above 390m depth, 1.0g/t Au cut-off below 390m depth, assays to 7 November 2023. Differences may occur due to rounding
De Grey Mining 2024 Annual Report | 14
Hemi Exploration
Exploration is a key value driver for the ongoing development phase at Hemi. This includes both Resource
extension drilling and earlier stage drilling targeting new discoveries and Mineral Resources across the Project
area. During the period the Company continued to generate and test prospects at Hemi, within the 40km Greater
Hemi Corridor and other Regional targets across the Project (Figure 4). Exploration success continues to provide
new opportunities to enhance the DFS production profile.
Figure 4: Hemi Project Area including Resources and exploration targets/prospects
Eagle
Widely spaced drilling down plunge and down dip at Eagle demonstrated substantial extensions to known
mineralisation. At the time of the November 2023 MRE, the Eagle mineralised intrusion had been intersected over
a strike of approximately 1,000m and a true thickness of approximately 200m, extending to at least 600m depth.
Drilling extended mineralisation at Eagle beyond the November 2023 MRE for an additional 200m down-plunge
and remains open at depth and potentially along strike (Figure 5).
Significant results from this extension drilling included:
•
4.6m @ 31.8g/t Au from 501.4m including 1.1m @ 130.5g/t Au from 501.8m in HEDD255
•
20.4m @ 4.0g/t Au from 399.4m including 0.9m @ 19.0g/t Au from 399.4m and 0.7m @ 79.7g/t Au from
418.7m in HEDD257
•
16.5m @ 1.8g/t Au from 660.0m including 7.5m @ 3.4g/t Au from 669.0m in HEDD258
•
19.3m @ 1.0g/t Au from 631.0m, 12.2m @ 1.0g/t Au from 664.1m and 5.8m @ 1.6g/t Au from 689.1m in
HEDD259
•
7.0m @ 1.2g/t Au from 575.0m and 20m @ 1.8g/t Au from 588.0m, including 4m @ 4.3g/t Au from
588.0m in HMRC018D
•
47.0m @ 1.6g/t Au from 522.0m, including 7m @ 4.3g/t Au from 522.0m and 29.2m @ 1.4g/t Au from
576.8m in HMRC646D
De Grey Mining 2024 Annual Report | 15
Figure 5: Eagle Long Projection showing drill results outside the DFS open pit shell and November 2023
MRE
Antwerp
Antwerp is located west of the Eagle Deposit. Both RC and diamond drilling has defined a >1km trend to the
southwest of Eagle, with gold mineralisation associated with structures that either splay off, or are parallel to, the
Diucon Thrust. The Company is aiming to calculate an initial MRE for Antwerp in FY25.
Several zones of gold mineralisation associated with Hemi-type intrusions have been intersected at Antwerp,
extending the prospect to the southwest. Results reported during the period included:
•
12m @ 1.4g/t Au in HMRC575D
•
4m @ 12.3g/t Au in HMRC626
•
8m @ 1.8g/t Au, 25m @ 1.3g/t Au, 16m @ 1.1g/t Au and 7m @ 1.7g/t Au in HMRC587D
West Yule Prospect
The West Yule Prospect is around 12km WSW of Hemi within the Greater Hemi Corridor and lies in the hanging
wall of the Wohler shear zone. Host rocks comprise interbedded siltstones, black shales and sandstones within
the Mallina Formation, with mineralisation associated with quartz veining and sericite alteration. Variably
fractioned, sill-like intrusions of the Millindinna suite intrude the metasedimentary sequence. Structural
architecture in the area features doubly plunging anticlines and synclines aligned with NE-SW-trending regional-
scale thrust faults.
Significant recent aircore results were achieved from West Yule in the period, including:
•
6m @ 3.4g/t in MWAC2155
•
20m @ 1.2g/t Au in MWAC2776
•
1m @ 12.2g/t Au in MWAC2825
Follow-up drilling will be completed in FY25.
De Grey Mining 2024 Annual Report | 16
Lowe (Egina JV)
In June 2023 De Grey signed an exploration agreement with Novo Resources Corporation to earn a 50% interested
in an approximately 1,000km2 tenement package located immediately south of Withnell and southwest of the
Hemi discovery. In FY24 an extensive aircore drilling program was completed across several greenfields targets.
Follow-up RC drilling was completed at several targets including Lowe.
Lowe is around 20km WSW of Hemi. The prospect includes a 5.2km long, synclinal layered sill, fractionated from
pyroxenite at the base up to gabbro and diorite. It is substantially thicker on the northern side of the syncline and
likely truncated by a fault and juxtaposed with altered metasediment to the south. A 10 hole RC program was
completed by De Grey in late 2023 and confirmed gold mineralisation associated with a deformed intrusive sill,
with a best intercept of 8m @ 4.7g/t Au from 97m in MSRC0031.
Ashburton Gold Project Option
In February 2024 we signed an exclusive Option Agreement with Kalamazoo Resources Ltd (KZR) to acquire KZR’s
Ashburton Gold Project (Ashburton).
Ashburton consists of granted Mining Leases and Exploration Licences, including KZR’s existing 1.44-million-ounce
gold Resource. The exploration package covers 217km2 and is located 35km from Paraburdoo and 290km south
of Hemi, with main roads connecting the two projects.
Key terms of the Option Agreement are:
•
Upfront $3 million Option fee payable to KZR within five business days of Option execution;
•
The Option period is 12 to 18 months (at De Grey’s election) with De Grey to commit $1 million
minimum expenditure for exploration, testwork and studies as part of its due diligence program on
Ashburton; and
•
Exercise of the Option, at De Grey’s election following or during the Option period, would result in
payment of $15 million and an additional $15 million within 18 months of exercise. Payments can be
made in cash or De Grey shares, at De Grey’s election.
Development studies undertaken by KZR and previous operators have highlighted the potential for Ashburton to
produce a high-grade gold concentrate from processing open pit ore.
Initial due diligence by De Grey indicates the potential to economically deliver concentrate at some future time
from Ashburton to the proposed Hemi pressure oxidation plant with a view to potentially increase Hemi’s annual
gold production rate and/or to extend Hemi’s operational life.
At a potential overall acquisition cost of under $25 per ounce of gold based on the existing MRE, Ashburton
represents an attractive opportunity for De Grey in consolidating regional opportunities surrounding Hemi.
De Grey has established Business Development and Studies teams separate to the Hemi Project development
team to conduct due diligence on Ashburton.
Hemi Mining Lease and Permitting
In September 2023, the Company was granted the Mining Lease (M47/1628) for Hemi by the Western Australian
Department of Energy, Mines, Industry Regulation and Safety (DMIRS). The Mining Lease covers the Hemi
deposits, proposed mining area and processing plant site.
De Grey Mining 2024 Annual Report | 17
The Company made environmental approval submissions to the Federal Department of Climate Change, Energy,
the Environment and Water (DCCEEW) in May 2023 and the State Environmental Protection Authority (EPA) in
June 2023.
The EPA has assessed the Project and advised that it will be assessed on referred information (with certain
additional information), followed by a public review process under a Section 38 Referral (Environmental Protection
Act 1986 WA) assessment outcome for the Project.
Throughout the period we continued to engage constructively with both assessment teams to complete the
additional information requirements for submission of Supporting Documentation for the State and Federal
approvals processes. Additional testwork and reports were due to be submitted to regulators in the September
quarter 2024 and positive engagement with both assessment teams will continue.
Approval pathways are consistent with those published in the Hemi DFS September 2023, although the timing of
receiving such approvals is uncertain.
No environmental red flags or high risks have thus far been identified in two bank due diligence exercises following
the release of the PFS in October 2022 and DFS in September 2023.
Project Financing
Formal engagement with project financiers commenced in late 2022 based on the provision of non-binding
indicative terms for potential project financing earlier this year based on the PFS outcomes.
Following the release of the DFS, we commenced the second stage of engagement with project financiers. Non-
binding proposals were received from 15 leading global financial institutions with indicative commercial terms the
Company considered to be highly competitive.
After receiving non-binding indicative offers, De Grey continued this engagement, providing term sheets and
Independent Technical Expert reports to 10 shortlisted banks and two Government Funding Agencies,
commencing the due diligence phase of the process.
By end of FY24, we received credit approved term sheets from a range of leading domestic and international
commercial banks.
Australian government credit agencies, the Northern Australia Infrastructure Facility (NAIF) and Export Finance
Australia (EFA) (together, the Government Agencies) have both expressed interest in being involved in the lending
syndicate. Subsequent to the end of the period, in August 2024, NAIF agreed to terms for provision of a $150
million loan to support the development of Hemi.
In total, the Commercial Banks and Government Agencies are expected to provide a A$1.0 billion senior debt
facility and A$130 million cost overrun facility (together, the Debt Facilities), to finance the development of the
Project.
The credit approved terms received satisfy the targeted Debt Facilities and it is anticipated that the syndicate will
be structured to optimise commercial terms, tenor, timing and flexibility of the Debt Facilities.
Once finalised, when combined with De Grey’s cash balance of $867 million at 30 June 2024, the Debt Facilities
are expected to provide the balance of funding required for the Project capital cost (Figure 6). Formal
documentation on the Project Financing is anticipated to be finalised in the December quarter 2024.
De Grey Mining 2024 Annual Report | 18
Figure 6: Indicative Funding Plan for Hemi
Building Organisation Capability
We continued to build our organisational capability to take the Project from the exploration/studies phase,
through development and into commercial production. Strategic hires to support this pathway continued in FY24.
Building De Grey’s in-house capability will significantly de-risk our upcoming transition through project
construction, commissioning and into operations.
Chief Sustainability and Risk Officer
Neil Foster was appointed in a newly created role of Chief Sustainability and Risk Officer, further elevating the
significance of sustainability and risk internally and with external stakeholders. Neil brings extensive experience in
both technical and sustainability disciplines. As an Environmental Geologist and Geotechnical Engineer by
qualification, Neil spent his early career in major consulting businesses where he serviced companies operating in
mining, oil and gas and infrastructure. He recently was Group Head of Sustainability, Environment and
Communities at Iluka Resources.
General Manager Business Development
Allan Kneeshaw was promoted to the role of General Manager Business Development during the period. Allan
worked with De Grey as a Consulting Geologist for 18 months before joining the Company in a full-time Business
Development role in mid-2019. Mr Kneeshaw was a key part of the geological team which discovered Hemi and
has more than 25 years of experience in gold and base metals exploration in Australia and China.
General Counsel and Company Secretary
The Company also appointed Sarah Standish as the Company’s General Counsel and Company Secretary. Sarah is
an experienced General Counsel and Company Secretary, with expertise and skills in leading legal, risk, compliance
and governance functions in ASX listed and international companies. Ms Standish replaced Craig Nelmes as
Company Secretary. Mr Nelmes was with De Grey for more than 10 years and made a significant contribution to
the Company’s growth.
De Grey Mining 2024 Annual Report | 19
Appointment of General Manager Operations
Geoff Fenton has been appointed as the General Manager Operations for Hemi and will commence his role on 2
September 2024. Geoff will be responsible for the operational readiness of Hemi and the transition from
development to operations, working alongside Project Director Peter Holmes. The role includes responsibility for
mining contractor selection, major supply contracts and building the operations team.
Additional appointments
The Company was strengthened by the commencement of the following roles:
•
Engineering Manager
•
Projects Controls Manager
•
Community & Social Performance Manager
•
Project Manager
•
Study Manager
•
Senior Native Title & Heritage Advisor
•
Principal Environment Approvals
•
Contracts & Procurement Lead
Establishment of the Hemi Gold Project Committee
During the March quarter 2024 the Company formed the Hemi Gold Project Committee. The Project Committee
will support enhanced oversight and governance during the pre-construction, construction and commissioning
phases of the Hemi Project including:
•
Providing input to and monitoring the Project scope and progress to ensure continued alignment with
the Company’s strategic objectives;
•
Ensuring project-wide alignment on execution and contracting strategies; and
•
Making recommendations on the tendering of major contracts and use of specialist contractors.
Ivan Mullany has been appointed as Project Committee Chair. As Managing Director, I will also sit on the Project
Committee with Hemi Project Director Peter Holmes. Other parties will be invited to participate as required.
The Project Committee will provide oversight of the Project Execution Plan for Hemi and report to the De Grey
Board of Directors, however is not a sub-committee of the Board.
Ivan is a senior mining executive with extensive international leadership strengths in project development,
operational excellence, innovation, business strategy and governance, gained over a 35-year career in the mining
sector. He has spent a large part of his career in the gold industry and has worked with major companies including
Newmont Mining, Barrick Gold and Goldcorp. In these roles Ivan has overseen the construction and
commissioning of a range of major gold projects in different jurisdictions, including pressure oxidation processing
circuits.
De Grey Mining 2024 Annual Report | 20
Additional Project Studies
Significant progress was made on studies investigating the potential to concurrently develop the Hemi Regional
deposits and/or underground mining alongside the main Hemi open pit operations. The Hemi Regional Scoping
Study (Regional Study) was released in the September Quarter 2024. The outcomes confirmed the potential to
enhance the Hemi DFS production profile and additional studies will be methodically progressed to the next phase
during the Hemi construction period.
Hemi Regional Scoping Study
The Regional Study (presented an initial evaluation of the potential development of the Hemi Regional deposits
located to the east and west of the main Hemi deposits. The Regional Study outlined a strong financial and
technical case for the potential development of the Hemi Regional deposits within the first five years of operations
at Hemi and would be funded from operating cashflows from Hemi.
The Hemi Regional deposits comprise mining centres located around Wingina to the east of Hemi (Eastern Mining
Centre) and around Withnell to the west of Hemi (Western Mining Centre). A Mineral Resource containing
approximately 0.5Moz has been defined in the Eastern Mining Centre and approximately 1.7Moz in the Western
Mining Centre deposits for a total combined Measured, Indicated and Inferred Hemi Regional MRE of 41Mt at
1.7g/t Au for 2.2Moz.
The Wingina and Mt Berghaus deposits at the Eastern Mining Centre are located on granted Mining Leases located
approximately 15km east of Hemi. Production from these deposits in the Regional Study is free milling oxide ore
and is proposed to be hauled and processed through the Hemi processing facility, sharing Hemi infrastructure
and personnel where possible.
The Regional Study includes the establishment of a regional processing facility at Withnell, the Western Processing
Hub, treating the Western Mining Centre deposits. Withnell is located approximately 95km by road from Hemi
following a route along the Great Northern Highway and North West Coastal Highway.
Key outcomes included:
•
Gold production of approximately 817koz averaging 142kozpa over an initial evaluation period of
approximately six years
•
Production from the Hemi Regional deposits and Hemi could increase Global gold production from the
Project area to approximately 700koz a year from Year 4 of operations at Hemi
•
Hemi Regional MRE is currently 41Mt at 1.7g/t Au for 2.2Moz total combined Measured, Indicated and
Inferred Resources
•
Measured and Indicated Mineral Resources within the Hemi Regional Scoping Study production
represent approximately 84% of recovered gold with the balance in the Inferred category with the Hemi
production profile comprising 99% Probable Reserves (excluding Hemi Regional production)
•
AISC of approximately $1,820/oz
•
Forecast free cashflows of approximately $400M (pre-tax) over the initial evaluation period
De Grey Mining 2024 Annual Report | 21
Concluding Comments
De Grey has assembled an exceptional team of people to advance what is truly a world-class gold development
project in Western Australia. I continue to be impressed by what our people are achieving in delivering the full
potential of Hemi. My sincere thanks is extended to every member of the De Grey team, from our Board of
Directors and right through our people in Perth and our growing site-based staff.
It is a great privilege to be leading De Grey as we move into FY25 and seek to achieve the following objectives:
•
Continue to build Project and overall
organisation capability to enable efficient
execution of the development of Hemi
finalising documentation for the $1.0 billion
senior project debt facility and $130 million cost
overrun facility
•
Complete front-end engineering to
approximately 30% to allow tendering of the
plant construction contract
•
Tendering and awarding the major contracts for
plant construction and mining
•
Submit additional information requested by
federal and state regulators under the Projects
levels of environmental assessment
•
Obtain all environmental and other statutory
approvals required to enable the
commencement of full construction of the Hemi
project, and commence construction
•
Continue exploration around Hemi and
Regional areas prioritising targets that have the
potential to delineate new, near surface
discoveries in excess of 1Moz and grow the
Global resource by 2Moz
•
Continue assessment of Hemi underground and
Hemi Regional opportunities
•
Complete exploration on the Egina JV to an
initial minimum $7M in expenditure and assess
future activities
•
Complete studies into the Ashburton project
under the option agreement with Kalamazoo
Resources and assess future activities
I look forward to keeping you updated on our progress.
Glenn Jardine
Managing Director
De Grey Mining 2024 Annual Report | 23
MESSAGE FROM CHAIR OF
SUSTAINABILITY COMMITTEE
As Chair of the Board’s Sustainability Committee, I am pleased to share our 2024 Sustainability Report with you.
The report sets out our performance for the year, improvements the team are continuing to make in our approach
to sustainability, and the deliberate progress being made as we transition towards and prepare for development
of the Hemi Gold Project.
During the year we welcomed Neil Foster to De Grey Mining as our new Chief Sustainability and Risk Officer. Neil
brings a wealth of Australian and international experience in the resources sector including major project
construction, to our team. His appointment reflects both the Board’s continued focus on the importance of
sustainability as fundamental to our success, and ensuring senior leadership expertise is in place at the highest
levels of our organisation.
This year our Sustainability Report provides insight into the matters of importance to the company, our approach
to managing risk and realising opportunities, and our plans to support the sustainable development and operation
of the Hemi Gold Project. We recognise the increased need for transparency in reporting on the impacts of our
activities in a structured way that is transparent to stakeholders. This report is our first prepared with reference to
the GRI Standards, and we seek to continue improving the alignment of future reporting as the Company’s
activities grow.
As the development of Hemi approaches, our focus on strong sustainability performance will only increase. To this
end it is pleasing to report a 55% reduction in Total Recordable Injury Frequency Rate in FY24 compared to last
year, which was already a reduction of 63% on the previous period.
This year the team also delivered high quality and comprehensive submissions to State and Federal Governments
seeking environmental approval for the development of Hemi. The team continue to strengthen our ties with
Traditional Custodians as we seek to protect cultural, spiritual and educational practices, and realise mutually
beneficial social and economic outcomes arising from our presence in the Pilbara Region.
As the Company grows, so must the systems and processes that support it. Looking to the future, this year the
team will be focussing on enhancing our Sustainability Framework, refining internal reporting and governance,
deeper analysis of climate related risks and opportunities, and ensuring readiness and capability in every aspect
of sustainability management to support De Grey’s continued growth.
I would like to thank the De Grey team for their dedication and progress made this past year, and to those valuable
stakeholders and partners who support us and our sustainability initiatives.
Yours sincerely,
Paul Harvey
Chair of Sustainability Committee
De Grey Mining 2024 Annual Report | 24
FY24 SUSTAINABILITY
SNAPSHOT
Environment
•
140.65 hectares of land rehabilitated across our
exploration and mining tenements
•
1,301 nights of monitoring (using motion sensor
cameras) focussed on conservation significant fauna
species
•
Environmental Protection and Biodiversity Conservation
Act 1999 (Commonwealth) and Part IV Environmental
Protection Act 1986 (WA) environment approvals
assessment outcomes received, aligned with expectations
Social
•
55% reduction in total recordable injury frequency rate
(TRIFR) (FY24 4.63 compared to FY23: 10.27)
•
Year-on-year increase in female representation in the
workforce to 37% in 2024 (FY23: 32%)
•
Completion of in-person cultural competency training by
both the Board and Executive Leadership Team
Governance
•
Appointment of General Counsel and Company Secretary
and Chief Sustainability & Risk Officer
•
Development and implementation of Supplier Code of
Conduct and Risk Management Policy
•
Development and Implementation of 2024 Workplace
Gender Equality Statement
De Grey Mining 2024 Annual Report | 25
OUR APPROACH TO SUSTAINABILITY
At De Grey, we are committed to operating ethically and sustainably, and striving to implement and maintain high
standards of corporate governance and business conduct as we grow the potential of our Tier 1 asset – the Hemi
Gold Project (Hemi or the Project). Core to our strategy is a belief that integration of environmental, social and
governance (ESG) principles in how we think and operate, is critical to the success of our business.
Our sustainability strategy and ambition are overseen by our Board of Directors (Board) which is supported by
the Sustainability Committee. The Board holds overall responsibility for the Company’s commitment to health and
safety, the environment and incorporating sustainable development principles into corporate strategy and
business decision making. The Sustainability Committee assists the Board by reviewing and making
recommendations on strategic objectives regarding safety and sustainability activities across the Group’s
operations. Additionally, the Board is also supported by the Audit and Risk and Remuneration and Nomination
Committees. Details on the Committees’ roles and responsibilities can be found in the corporate governance
section at www.degrey.com.au with an outline of the Company’s governance structure in terms of sustainability
objectives and performance set out below.
In recognition of our commitment to sustainability, in 2024 the Company appointed a Chief Sustainability & Risk
Officer (CSRO) and stood up the Company’s Sustainability Working Group. The group is tasked with developing
and implementing our sustainability strategy, as well as advising the Board Sustainability Committee on specific
sustainability initiatives. The group comprises:
•
CSRO
•
General Counsel and Company Secretary
•
General Manager - People and Capability
•
Project Director, General Manager –
Exploration
•
Manager Environment
•
Health and Safety Manager
•
Native Title and Heritage Manager
•
Community and Social Performance
Manager
•
Sustainability Systems Advisor.
De Grey Mining 2024 Annual Report | 26
REPORTING APPROACH
This report provides an overview of De Grey’s sustainability approach and accomplishments for the 12-month
period from 1 July 2023 to 30 June 2024 (FY24) and was reviewed and endorsed by the Board. In the reporting
period the Board endorsed utilising the Global Reporting Initiative (GRI) Sustainability Reporting Standards to
support greater transparency and structure in its future reporting. This report has been prepared with reference
to the GRI Standards, to reflect our most material ESG topics. The boundary of the report covers assets where we
have operational control.
As the Company moves forward with Hemi, we are committed to aligning our sustainability reporting and
performance with the most appropriate frameworks to ensure transparency and accountability. This report is
complimented by our 2024 Sustainability Data Book, which includes current and historical data (where available)
on health, safety, environment, community and governance topics.
In FY24, we upheld our commitment towards alignment with the International Council on Mining and Metals
(ICMM) Principles and Task Force on Climate-related Financial Disclosure (TCFD) Recommendations as core to our
sustainability framework. We conducted our annual gap analysis against these frameworks, revealing year-on-year
improvements across several areas including respecting the rights of Indigenous People, ongoing implementation
of risk management systems and stakeholder engagement. De Grey also joined the “GRI Community” which allows
us to gain insights on reporting best practice as we progress our sustainability efforts.
The Company’s case studies showcasing our sustainability initiatives and action undertaken throughout the
reporting period, are available here on our website.
MATERIAL TOPICS
Our materiality assessment process is a vital tool that shapes our sustainability strategy, allowing us to prioritise
our efforts and resources on the most important issues, the results of which are integrated into our enterprise risk
management review process. During FY24, De Grey maintained its focus on key sustainability priorities by
continuing to address the material topics identified from the previous year’s materiality assessment. While our key
material topics remained unchanged, we identified two new emerging topics: Supply Chain Management and
Economic Contribution reflecting the increased impact procurement and operational activities will have in future
years. The topics were reviewed and endorsed by the Sustainability Committee and subsequently approved by the
Board.
De Grey remains committed to the 17 United Nations Sustainable Development Goals (UN SDGs) and we
recognise our impact on, and opportunity to positively contribute, to the UN SDGs. Understanding the changing
nature of materiality, we intend to continuously assess and refine our alignment as the Company and the Project
progresses.
ENVIRONMENT
SOCIAL
GOVERNANCE
Water
Health, Safety and Wellbeing
Corporate Governance,
Compliance and Business Ethics
Climate and Emissions
Aboriginal Engagement
Risk Management
Biodiversity
Communities and Stakeholder
Engagement
Supply Chain Management
Talent Attraction, Development
and Retention
Economic Contribution
Diversity and Inclusion
De Grey Mining 2024 Annual Report | 28
ENVIRONMENT
At De Grey, we strive for continual improvement in our environmental
performance, implementing measures to minimise the impact of our
activities and support sustainable business operations. De Grey
undertakes progressive rehabilitation where possible across our mining
and exploration activities. We continue to improve our systems and
processes as our activities grow and seek to enhance our scientific
knowledge through technical studies and in-field survey.
De Grey Mining 2024 Annual Report | 29
Water
Hemi will inherently use water during operations, a resource we share with the local community, the Traditional
Owners of the land, and the natural environment. The Project is situated on a relatively flat plain between the Yule
and Turner Rivers. De Grey designed the Project with a focus on minimising potential impacts to these rivers, while
considering their ecological, cultural, and social significance.
To date, we have completed numerous surface water and groundwater resource investigations; developed a site
water balance, informed by hydrogeological modelling, that includes discharge, reinjection and usage; considered
water efficiency in the process design, tailings and surplus water disposal; and the cumulative impacts in the
context of other water users. De Grey continues to engage with the pastoralists and the Traditional Owners, the
Kariyarra People, on water management at a catchment level.
During 2024, De Grey abstracted 38,360 kilolitres (KL) of groundwater for exploration and potable use in line with
our approved groundwater licences. This compares with 56,500 KL in 2023 and the reduction is attributable to
reduced site-based activities, and a greater focus upon development of the Project. We also expanded our
baseline surface water and groundwater monitoring network to further enhance our understanding of water
resources in the Project area. Groundwater and surface water monitoring continued during the reporting year
which resulted in further refinement of the groundwater model and enhanced our understanding of surface
water/groundwater interactions.
Climate and emissions
De Grey supports the Paris Agreement to limit global warming and the global goal of net zero carbon emissions
by 2050. We accept the key findings of the Intergovernmental Panel on Climate Change (IPCC) assessment of
climate change science and potential climate change impacts. We understand that climate change may affect our
business and operations through two main types of risk: physical and transitional. In the coming year, De Grey will
undertake a climate change risk assessment based on several climate scenarios to identify the likelihood and
potential impacts (positive and negative) of future climate conditions on our Project. The outcomes of this
assessment are fundamental to informing the implementation and continuous improvement of our
decarbonisation and transition plans.
Our current emissions are mainly generated from Scope 1 sources such as diesel use for exploration activities and
accommodation village power, with minor Scope 2 emissions from power supply to Company offices. During the
reporting period, De Grey continued investigating decarbonisation strategies as part of Project progression
looking at all feasible opportunities to eliminate, substitute, and reduce emissions from Hemi.
To prepare for mandatory climate reporting the Company has adopted the TCFD Recommendations, in the context
of the forthcoming Australian Sustainability Reporting Standards (ASRS), into its sustainability framework. Notably,
the TCFD Recommendations are now incorporated into the International Financial Reporting Standards (IFRS),
which the ASRS aligns with, but is tailored for local companies with a focus on climate.
De Grey Mining 2024 Annual Report | 30
GHG Emissions FY24
Sources of GHG Emissions (%)
Biodiversity
We recognise that biodiversity, climate and water resources
are closely linked, and we aim to manage and reduce our
impact on biodiversity and ecosystems in our operations.
Our biodiversity management strategy includes minimising
environmental impacts, promoting ecosystem restoration,
and integrating conservation efforts into the planning,
operational and closure phases of our Project.
To date, biodiversity surveys have covered over 30,000
hectares of the Project area and introduced exclusion zones
around ecological values of conservation significance
including priority ecological communities, water resources
and critical habitat. In FY24, we intensified our monitoring of
conservation significant species that may be present in the
Project area ensuring we limit our impact on these species
to the greatest extent possible. We also introduced an
internal Ground Disturbance Permit process to manage land
clearing activities in accordance with approvals.
Hemi is currently undergoing an environmental and social
impact assessment process under the Environmental
Protection Act 1986 (WA) and Environmental Protection and
Biodiversity and Conservation Act 1999 (Commonwealth)
which have public consultation and disclosure requirements.
The referral and supporting documentation are publicly
available on the Environmental Protection Authority
website.
Check out our World
Environment Day 2024
Celebrations here
De Grey Mining 2024 Annual Report | 32
SOCIAL
De Grey’s social performance is founded upon the premise of
understanding and minimising the potential impacts of our activities
on communities and managing social risks to the business. We seek to
engage meaningfully with stakeholders and make a positive difference
to the social and economic development of the communities in which
we operate.
We are committed to being an outstanding community partner who
engages with and supports the long-term goals of the people and
places neighbouring our operations. At De Grey, everyone has a
responsibility to themselves, their workmates, the environment and the
community in which we live and operate.
Health, safety and wellbeing
De Grey is committed to the health, safety and wellbeing of our people and believe incidents and occupational
illnesses are preventable. The potentially hazardous nature of mining activities requires us to cultivate a culture of
responsibility, be a leader in safety, always report hazards and incidents, and empower our employees to speak
up and stop work if it’s not safe. Health and safety is a core value, it is at the forefront of everything we do and is
embedded into our operational goals.
During FY24, we developed detailed emergency response plans based on our Emergency Preparedness and
Response Procedure (EPRP). Employees on site are trained on these plans, ensuring everyone knows what to do
in emergencies. Moreover, our Emergency Management Team and Crisis Management Team receive ongoing
training throughout the year on handling different emergency scenarios. This preparation ensures that we can
respond quickly and effectively to any emergency that might occur.
Acknowledging the demanding nature of work in remote and often isolated environments can impact
psychosocial factors including the mental health and wellbeing of our workers. We are implementing various
initiatives to support this, including awareness programs, access to our confidential Employee Assistance Program
(EAP), and promoting a supportive workplace culture. We also provide regular mental health training for managers
and employees to assist in identifying and addressing issues early on. In FY24, we provided onsite training of the
EAP services which can be used for personal or work-related issues. In total, 18 of our people (four during the
reporting period) have participated in Resourceful Mind training provided by Lifeline, with three employees
identified as mentors and being part of the Western Australia Department of Energy, Mines, Industry Regulation
and Safety (DEMIRS) Mental Awareness, Respect and Safety (MARS) scholarship program.
In FY24, De Grey initiated the development of the Critical Control Management (CCM) process to concentrate on
material risks and principal mining hazards. The program commenced with bowtie-analysis to identify threats and
critical controls for our exploration activity and will continue to evolve over the next reporting period. Our aim is
to embed CCM into our operating philosophy and safety culture to promote a safer working environment for all
personnel involved in our activities.
To see how we made RU OK? Day
a weeklong initiative, click here
De Grey Mining 2024 Annual Report | 34
Aboriginal engagement
De Grey acknowledges the Traditional Custodians of the
land upon which we operate, the Kariyarra, Ngarluma,
Nyamal, Ngarla, Mallina and Whadjuk Noongar peoples. We
recognise their unique cultural heritage, beliefs and
connection to these lands, waters and communities.
Throughout the exploration and studies phase, De Grey has
developed a strong and collaborative relationship with our
Native Title holders and knowledge holders. We believe that
building respectful relationships with Aboriginal and Torres
Strait Islander people, organisations and communities in
which we live and operate, is essential to our success as a
business. De Grey is very pleased to have received
conditional endorsement from Reconciliation Australian of
our Reflect Reconciliation Action Plan (RAP) during FY24,
and we are seeking to officially launch our RAP in FY25.
The Company signed a Native Title Mining Agreement with
the Kariyarra people in December 2022 that includes
provisions for employment, training and contracting
opportunities. This agreement encompasses all the Project
resources, the Project footprint and infrastructure. De Grey
has been working directly with the Kariyarra Aboriginal
Corporation (KAC) Board through a joint Implementation
Committee to deliver the desired outcomes of the
Agreement. The focus in FY24 has been open engagement
on
studies
and
further
information
supporting
environmental approvals for the Project, emphasising the
importance of continuous and open engagement with the
Kariyarra people. This ongoing collaboration covers a range
of activities, including comprehensive environmental
surveys that encompass critical aspects such as the study of
local flora, fauna and effective water management practices.
The De Grey Board met with senior management of KAC in
FY24
to
support
continued
strengthening
of
our
relationship.
De Grey works closely with all the Native Title groups in the management of cultural heritage located within our
tenements. The Company’s western tenements sit across Ngarluma Country, and negotiations are underway with
the Ngarluma Aboriginal Corporation to develop a Native Title Mining Agreement. Since November 2023, De Grey
and Ngarluma have been holding monthly negotiation meetings to progress an agreement.
In 2024, De Grey and Farno McMahon signed an agreement with Mugarinya Community Association Inc. for tenure
within the Yandeyarra Reserve. Negotiations are underway for an additional agreement that covers further tenure
within the reserve and discussions with Mugarinya are continuing in a positive manner. De Grey looks forward to
working with the Mugarinya and the Yandeyarra Community on tenements located within the Yandeyarra Reserve
and any community and/or social programs. Our eastern tenements are located on Nyamal Country, and we are
looking forward to working with Nyamal people.
Read how we were
involved in the Kariyarra
Community Christmas Box
packing here
De Grey Mining 2024 Annual Report | 35
During the reporting period, De Grey completed approximately 3,047ha of archaeological surveys and
approximately 6,185ha of ethnographic surveys across all tenements for the Project and regional areas. These
surveys have been done in collaboration with Traditional Owners to identify and map heritage sites.
In FY24, we engaged an external provider to deliver cultural competency training services to the Board and the
Executive Leadership Team. This was an instrumental first step for the Company to continue to build its level of
cultural competency within the business. Online training will also be made available for all employees in the
coming months. De Grey would like to acknowledge that we are committed to continuing to work with the
Kariyarra People and other Traditional Owners to facilitate and receive training specific to the country that we
operate on.
Talent attraction, development and retention
In an industry where competition for mining talent is very robust, we strive to be an employer of choice, attracting,
engaging, and retaining a highly skilled and committed team. We take pride in investing in our people by offering
professional development opportunities. This enhances their skills and knowledge, equipping them with the tools
necessary to contribute to the Company’s success. De Grey recognises and rewards the service of our employees,
whilst the annual employee engagement survey provides an opportunity for our employees to provide feedback
on what we are currently doing well and how we can improve our practices. In FY24, we saw an increase in
participation in our employee engagement survey up 6.5% from the previous year (FY23: 82.5%), and an overall
engagement score of 81% (FY23: 55%) which reflects a highly engaged workforce.
During the reporting period, our current and emerging leaders had the opportunity to attend a two-day leadership
development course presented by the Australian Institute of Management in Western Australia (AIM WA). The
course covered topics such as methods to manage difficult conversations, effective performance management,
psychosocial safety and our obligations.
We launched our ‘Living the Values’ Awards in FY23 which acknowledges and recognises employees for living,
embodying and displaying the Company values – ESPRIT – Empathy, Safety, Personal Responsibility, Respect at
All Levels, Integrity, Thinking Differently. In FY24, De Grey undertook several values workshops throughout the
business to gain feedback on the Company values, ensuring they remain relevant and fit for purpose as we
transition into the next phase of the Project.
As we move forward with the development of Hemi, we will continue
to grow our organisational capacity. In FY24, we recruited over 50
team members bringing our total amount of employees up 20% to
137 (FY23: 114). New employees are inducted into the business with
an introduction to De Grey’s values and culture, policies, and safety
protocols, ensuring they have a solid understanding of the Company,
expected behaviours and are equipped to work safely.
Find out more on our Current and
Emerging Leadership Development
Course here
De Grey Mining 2024 Annual Report | 37
Communities and stakeholder engagement
We are committed to building meaningful relationships based on trust, transparency and openness. We engage
with stakeholders from the local community, landholders, suppliers, contractors, Indigenous peoples, government
and peak industry bodies on a regular basis. We engage with these stakeholders to understand their interests and
aspirations, helping us identify opportunities for collaboration to achieve sustainable outcomes.
Our approach to engaging with our stakeholders is summarised in our ESG Data Book with stakeholder
engagement updates regularly provided to the Executive Leadership Team and the Board via the Sustainability
Committee. We updated our Stakeholder Engagement Plan in FY24 to more accurately reflect our stakeholders’
interests and needs, improving the effectiveness of our engagement strategies and addressing new opportunities.
De Grey also hosts community Town Hall meetings in Port Hedland with each event attended by our Executive
Leadership Team to provide milestone updates on the Project. These meetings present an excellent opportunity
for key stakeholders to learn more about our Project and the socio-economic opportunities it presents. Each
meeting is a forum for local community members and local businesses to share their interests, questions and
concerns.
Our social investment strategy is designed to ensure that our contributions have a meaningful and lasting impact,
and is informed by consultation with community, government and key stakeholders, as well as analysis of the local
context and government priorities. From this process, we have identified three social investment pillars that reflect
the regional priorities of the Pilbara: education, health and wellbeing, and the environment. In 2024, De Grey
formed a partnership with the Town of Port Hedland that will see new investment in community projects. Through
the De Grey and Town of Port Hedland Community Contribution Deed, we have committed to multi-million-dollar
funding of mutually agreed projects that will benefit the local community once Hemi reaches commercial
production.
We continued to build on our existing relationships with local stakeholders and communities in the Pilbara, with
new partnerships made with the Youth Involvement Council (YIC) and the Hedland Senior High School (HSHS).
The YIC partnership funds the mindfulness program which targets at risk children aged five to eleven and aims to
equip them with the necessary tools and resources to aid them in navigating their emotions and building
resilience. The HSHS partnership aids in operating the breakfast club twice a week, implementing the resilience
project school program, and enhancing the "chill-out" room - a designated area for promoting students' mental
well-being.
Our community complaints and grievance mechanism, available on our website, and communicated through our
community newsletter and direct engagement, provides a clear and transparent process for addressing concerns
fair and promptly. In FY24, we received two complaints from neighbouring pastoral stations. One complaint was
about the quality of work completed by a contractor that restricted station access, whilst the other involved a
failure to adhere to communication protocols. In response, De Grey implemented corrective actions to address
the concerns and ensured the relevant parties were satisfied with our responses. These actions included working
with the contractor to complete rework, reviewing procedures, and reiterating communication protocols.
Diversity and inclusion
De Grey’s greatest asset is our employees. We acknowledge and value the range of diverse backgrounds, skills,
experiences, and attributes our team members bring to the Company. Our Diversity and Inclusion Working Group
is responsible for creating and executing strategies, initiatives and programs to create awareness, and foster
diversity and inclusion in our workplace. We are committed to ensuring that throughout the employee’s time with
the Company, gender biases are mitigated and that we continue to provide a diverse and inclusive workplace.
In FY24, we published our gender pay gap statement as part of our commitment to transparency and continuous
improvement. While we have made strides in narrowing our gender pay gap, we recognise there is progress to be
made. The Company-wide gender pay gap is currently 16%, an increase from FY23 (12.3%). This slight increase is
primarily due to the transition of the Project towards its construction phase, which has led to a higher number of
project, technical and specialist roles. These positions typically have a higher representation of men and include
many senior specialist roles. We remain dedicated to gender diversity by conducting yearly salary reviews to ensure
our pay aligns with industry standards. We ensure fair compensation for employees in similar roles, considering
their experience and performance. Our gender pay gap statement can be accessed on the corporate governance
page of our website.
Our diversity targets for female representation on the Board is 30%
which is in line with the S&P/ASX200 initial measurable objectives,
with female representation on the Board currently at 17%. Our
Company-wide diversity target is set at 30% female representation
with our female participation for the reporting period being 37%, up
5% from FY23. The proportion of women in leadership roles increased
to 38% in the reporting year which is an increase of 2% compared to
FY23.
The proportion of Aboriginal and Torres Strait Islander peoples
currently in our workforce is 1.6%. We continue to work with the
Kariyarra People to provide employment, training and contracting
opportunities.
See how we
supported the
2024 Pilbara
Pride Festival
here
De Grey Mining 2024 Annual Report | 39
GOVERNANCE
At De Grey, we are committed to promoting a culture of ethical
behaviour, implementing and maintaining high standards of
corporate governance and business conduct and integrating
sustainable development in our corporate strategy and decision-
making procedures.
De Grey Mining 2024 Annual Report | 40
Corporate governance, compliance and business ethics
De Grey is committed to upholding high standards of corporate governance and striving to achieve compliance
with all Australian Securities Exchange (ASX) and industry regulations, recommendations, and principles. Our
corporate governance approach is anchored in our values, codes of conduct, and policies. We regularly review our
policies and procedures to ensure they are up to date with new regulations and standards.
We actively ensure compliance with our legal and regulatory obligations, with oversight provided by the Board
through the Audit and Risk Committee and the Sustainability Committee.
Our Whistleblower Policy encourages the confidential reporting of illegal and unethical behaviour without fear of
retribution. All reports made under this policy will be investigated in a fair, objective, and timely manner. We
encourage both our employees and external stakeholders to report inappropriate conduct directly and
confidentially in line with the Company’s Whistleblower Policy. Additionally, we empower our employees by
providing training on the Whistleblower Policy and procedures. The Company recorded no corporate breaches or
whistleblower incidents in 2024.
Our corporate governance documents, including our 2024 Corporate Governance Statement can be found on the
corporate governance page of our website.
Risk management
Accountability for risk management within the Company resides with the Executive Leadership Team, and
specifically the Chief Sustainability & Risk Officer. Responsibilities include developing, implementing and
reviewing the Company’s policies, procedures and guidelines required to govern risk identification, assessment,
monitoring, and reporting. The Board’s Audit and Risk Committee plays a key role in our risk management
framework.
Learn more about out our
Respect@Work Masterclass here
The Committee is mandated by the Board to provide risk management oversight including reviewing, at least
annually, the effectiveness of the Company’s risk management, ensuring material risks are controlled, and
operating with due regard to the risk appetite set by the Board. The Committee regularly reviews the
effectiveness of our risk management processes This oversight ensures that potential risks, whether operational,
financial, or reputational, are rigorously evaluated and managed. Our Executive Leadership Team reviews
enterprise risks monthly, and annually undertakes a strategic risk review of the entirety of the business.
For FY24, key enterprise risks are set out within the key risk section of the financial statements and our Corporate
Governance Statement.
Our commitment to practising robust risk management processes extends across all levels of the Company. We
are developing training programs and risk assessment tools to equip our workforce with the knowledge and
skills necessary to identify and mitigate risks effectively. This decentralised approach will ensure that risk
management is integrated into daily operations and decision-making processes, fostering a culture of continuous
improvement and resilience.
At De Grey we understand that effective risk management is dynamic and requires constant vigilance and
adaptation. We continually monitor the evolving risk landscape and adjust our strategies accordingly to address
emerging threats and opportunities. By maintaining a forward-looking perspective and leveraging technologies,
we aim to anticipate and respond to risks proactively, ensuring the sustainability and growth of our business.
Our dedication to robust risk management practices underscores our commitment to protecting our
stakeholders' interests and securing a prosperous future for our Company.
Supply chain management
De Grey operates with high ethical, environmental, and social standards and we expect our partners and suppliers
to do the same. Sustainable procurement is crucial to our business, and we are committed to upholding human
rights and eliminating modern slavery. Our Modern Slavery and Human Rights Policy emphasises this expectation
from all persons who work for us or on our behalf in any capacity, including employees at all levels, agency
workers, contractors, external consultants, suppliers, and business partners. Our commitment to respecting
human rights is also embedded in our Code of Conduct and our Supplier Code of Conduct.
During the reporting year, we developed a Human Rights Due Diligence and Modern Slavery Implementation
Plan to understand the potential human rights risks and impacts associated with the Project and broader
business; establish appropriate mitigation strategies such as supply chain management processes; and meet our
future reporting requirements of the Modern Slavery Act 2018 (Commonwealth). We also joined the Human
Rights Resources and Energy Collaborative (HRREC), a forum for practitioners working in the resources and
energy sectors to network and share knowledge in respect to human rights. We attended our first HRREC meeting
in June 2024.
In FY24, we engaged an external contractor management platform (ISNetworld) to ensure selected tenderers
and contractors have appropriate compliance in procurement contracts across labour, employment,
environmental performance, work health and safety, Indigenous engagement, insurances, among other areas.
We developed and published our Supplier Code of Conduct, outlining the minimum standards we expect from
our suppliers in human rights and labour, health and safety, environment and climate, and governance and
business ethics. Our risk-based approach begins by making suppliers aware of the Supplier Code of Conduct and
working with them to uphold the same standards as De Grey.
Economic contribution
De Grey is dedicated to creating shared value and strive to generate value for our shareholders, our employees,
and local communities both during and beyond the lifespan of the Project. Our commitment to enhancing socio-
economic wellbeing of the communities impacted by our operations is evident through initiatives such as local
employment, business opportunities, tax contributions and social investments.
Hemi will generate economic benefits for the Pilbara region and Australia as a result of the added value
generated from the production of gold, and from the spending on goods, services and wages associated with
the construction and operation of the Project.
20%
of the total mining and processing costs for the
Project will be spent with businesses in the Pilbara
region
$1.3b
Total combined value
$92M
Annual expenditure over 14 years for mining and
processing activities in the Pilbara region
80%
of the Project’s mining activities will have Australian
content valued at $2.8 billion
70%
of the processing-related expenditure will be spent
in Australia, amounting to $2.1 billion1.
Local procurement is a key strategy through which we support
community development. To assist us with our goal, De Grey launched
an online business register where local businesses can submit their
information and credentials for consideration in the Project
construction. We encourage local businesses to register on our
website and collaborate with us to achieve shared growth and success
(Local Business Register).
Detailed financial performance can be found in our audited financial
statements included in this Annual Report.
1Acil Allens Public Benefit Assessment Summary or Redefining
Pilbara Publication as hosted on the website.
De Grey Mining 2024 Annual Report | 43
PERFORMANCE IMPROVEMENT TARGETS
As De Grey moves forward with the development of Hemi, we are committed to implementing, embedding and
refining our sustainability strategy. Considering the evolution of national and international sustainability
reporting frameworks and standards, we plan to prioritise further refining our approach to the most suitable
framework based on the Company’s current maturity level.
This year, for the first time, we wish to set public performance targets against a selection of our material
sustainability challenges. These targets reflect some of the work priorities for the Company in coming years and
enable a common understanding, both internally and externally of our sustainable development goals and
performance.
During FY25 De Grey will develop appropriate metrics and targets to reflect its desired sustainability performance,
update the sustainability data book based on our material focus areas and applicable frameworks, and
implement.
We look forward to providing updates on our key achievements and activities in sustainability as we progress
through the coming year.
Performance Improvement Targets
Pillar
Material Topic
Target
Environment
Water
Zero significant environmental incidents (defined as ‘Major’
or above by De Grey’s incident reporting procedure)
Biodiversity
Exploration rehabilitation activities completed within
scheduled timeline
Climate and Emission
Complete climate risk assessment for Hemi Project in line
with TCFD/ASRS recommendations
Social
Aboriginal Engagement
90% of workforce completed cultural awareness training
Communities and Stakeholder
Engagement
Zero significant social incidents (defined as ‘Major’ or
above by De Grey’s incident reporting procedure)
Health, Safety and Wellbeing
Year on year reduction in TRIFR
Zero fatalities and permanent disabling injuries
Talent Attraction, Development and
Retention
Completed employee engagement achieving:
•
80% participation
•
65% engagement
Diversity and Inclusion
Zero incidents of relating to sexual harassment and
harassment which incorporates diversity and inclusion
Governance
Corporate Governance, Compliance
and Business Ethics
No incidents of bribery and corruption
Conduct and report upon annual gap analysis against
ICMM Mining Principles and TCFD Recommendations
Risk Management
Finalise and implement Risk Management Framework
Supply Chain Management
Develop Human Rights and Modern Slavery work
programme inclusive of supplier risk assessment
Economic Contribution
Review and implement social investment strategy
De Grey Mining 2024 Annual Report | 46
DIRECTORS’
REPORT
Your Directors present their report on the consolidated entity
comprising De Grey Mining Limited (De Grey or the Company) and
its controlled entities (the consolidated entity or Group) for the
financial year ended 30 June 2024 (FY24).
All amounts are expressed in Australian dollars unless otherwise
stated.
De Grey is a company limited by shares that is incorporated and
domiciled in Australia.
Directors
The following persons were Directors of the Company during the
whole of the financial year and up to the date of this report, except
as otherwise indicated:
Simon Lill
Glenn Jardine
Andrew Beckwith
Peter Hood
Paul Harvey
Emma Scotney
De Grey Mining 2024 Annual Report | 47
Information on Directors
Simon Lill, BSc MBA
Independent Non-Executive Chair
Mr Lill joined the board of De Grey in October 2013, becoming Executive Chair in 2014, a role he held until May
of 2020 when he relinquished the Executive aspects of his role. He remains as Independent Non-Executive Chair
of De Grey. Through this period he has shared responsibility for maintaining and increasing the tenement package
that forms the basis of the De Grey projects, most specifically the Hemi Project and reflects that he has been
fortunate to be part of the team that discovered the Hemi Project. His previous large Project experience has been
with Anaconda Nickel Limited through engineering studies, financing, and construction phases of the Murrin
Murrin Nickel mine. He also has extensive experience since the 1980’s with ASX listed companies, spanning small
cap companies to larger concerns, involving restructuring, corporate, compliance, marketing, company secretarial
and management activities, resulting in his role at De Grey.
During the past three years Mr Lill has also served as a Director of the following listed companies:
Company
Date appointed
Date ceased
Iris Metals Limited
29 December 2020
20 March 2024
Nimy Resources Limited
16 August 2021
-
Purifloh Limited
2 September 2013
-
Evergreen Lithium Limited
21 January 2022
-
Interest in shares and rights at the date of this report:
14,075,022 ordinary fully paid shares
Committees
Audit & Risk Committee
Remuneration & Nomination Committee
Glenn Jardine, BE (Mining) FAusIMM
Managing Director
Mr Jardine was appointed Managing Director in May 2020. He is an experienced mining executive of 35 years with
direct experience in growing resource companies from early-stage exploration through to multi-operation entities,
including taking projects through feasibility studies, equity funding, debt financing, project development and
operations. His experience includes Project Manager & General Manager of the Henty Gold Mine in Tasmania for
Goldfields Ltd; Project Manager of the Emily Ann & Maggie Hays nickel mines; General Manager New Business,
Chief Operating Officer & Managing Director for Lion Ore Australia. He has more recently been Chief Operating
Officer of Azure Minerals Limited. Commodity experience includes precious metals, base metals, and bulk
commodities across underground and open pit operations. Processing methods utilised at these projects and
operations include CIP/CIL, DMS, sulphide flotation, BIOX, pressure oxidation and SX/EW.
Projects developed have received Australian State and Federal recognition for environmental best practice and
health and safety and human resources systems.
De Grey Mining 2024 Annual Report | 48
During the past three years Mr Jardine has not served as a Director of any other listed companies.
Interest in shares, options and rights at the date of this report:
747,156 ordinary fully paid shares
1,014,716 performance rights
Andrew Beckwith, BSc Geology, Aus IMM
Non-Executive Director
Mr Beckwith joined the board of De Grey in October 2017 as the Technical Director and Operations Manager,
having commenced his time with De Grey as a Technical Consultant in February 2016. He stepped back from his
fulltime executive role to become a Non-Executive Director of the company in July 2023. Mr Beckwith is a
successful and experienced exploration geologist who has previously held technical roles with Westgold
Resources, AngloGold Ashanti, Acacia Resources, Helix Resources, Normandy NFM, North Flinders Mines and BP
Minerals Australia. At Westgold, Mr Beckwith initially held the role of exploration manager before appointment as
Managing Director.
During his time as an executive at De Grey, Mr Beckwith led and built the geological team that ultimately
discovered Hemi and has helped grow the Company’s gold resources from 0.3Moz to 11.7Moz. He is a co-
recipient of the industry Prospector of the Year Award for the Hemi discovery.
During the past three years Mr Beckwith has also served as a Director of the following listed companies:
Company
Date appointed
Date ceased
Carnavale Resources Limited
29 July 2014
-
Interest in shares, options and rights at the date of this report:
6,368,302 ordinary fully paid shares
Peter Hood AO, BE(Chem), MAusIMM, FlChemE, FAICD
Lead Independent Non-Executive Director
Mr Hood was appointed to the board on 19 November 2018. Mr Hood, a Chemical Engineer, has had a
distinguished career in the Australian Mining and Chemical Industries. He held the position of Senior Production
Engineer at the Kwinana Nickel Refinery from 1971 to 1981, then Mill Superintendent of the WMC Kambalda Nickel
and Gold Operations between 1982 to 1985. In 1985, he joined Coogee Chemicals Pty Ltd in the position of General
Manager and then as their CEO between 1998 and 2005. He then held the position of CEO of Coogee Resources
Ltd before retiring in 2008. Through that period, he was part of the management team that oversaw significant
growth in Coogee Chemicals.
In 2020, Mr Hood was recognised as an Officer of the Order of Australia in the Australia Day Honours List for
distinguished service to business and commerce at the state, national and international level, and to the resources
sector.
De Grey Mining 2024 Annual Report | 49
During the past three years Mr Hood has also served as a Director of the following listed companies:
Company
Date appointed
Date ceased
Cue Energy Resources Limited
23 February 2018
-
GR Engineering Limited
10 February 2011
-
Matrix Composites and Engineering Limited
15 September 2011
-
Interest in shares and options at the date of this report:
3,250,000 ordinary fully paid shares
112,283 Non-Executive Director share rights
Committees
Audit & Risk Committee
Sustainability Committee
Chair of the Remuneration & Nomination Committee
Paul Harvey, BE (Mining), FAusIMM, MAICD
Independent Non-Executive Director
Mr. Harvey was appointed to the board in July 2022. Mr Harvey is a Mining Engineer and highly experienced global
executive with over 35 years international experience across the commodities value chain, including gold. Mr
Harvey has led complex international businesses including as Chief Operating Officer at South32 with
accountability for the fully integrated global manganese business, base metals and metallurgical coal operations
spanning mining to smelting and refining, and all supporting technical and project functions. Mr Harvey has deep
project development experience having led large scale development projects in Canada and Australia and is a
recognised safety and sustainability leader with extensive cross cultural leadership experience in Australia, Canada
and across Africa. Mr Harvey was a founding Executive Committee member with the South32 demerger from BHP,
following 25 years with BHP with prior senior executive roles including President Nickel West, President and COO
BHP Billiton Diamonds and Vice President Strategy and Planning at Olympic Dam.
Mr Harvey also previously advised a large London based Private Equity firm on investments across the resources
sector globally. Mr Harvey also serves as an Independent Non-Executive Director with Sandfire Resources and on
the Advisory Committee to Wyloo Metals Pty Ltd.
During the past three years Mr Harvey has also served as a Director of the following listed companies:
Company
Date appointed
Date ceased
Sandfire Resources Ltd
12 September 2023
-
Interest in shares and options at the date of this report:
233,025 ordinary fully paid shares
37,290 Non-Executive Director share rights
Committees
Remuneration & Nomination Committee
Chair of the Sustainability Committee
De Grey Mining 2024 Annual Report | 50
Emma Scotney, B.A, LLB (Hons), GAICD, GradDipMgmt (Strategy and Finance)
Independent Non-Executive Director
Ms Scotney was appointed to the board in January 2023. She is an experienced corporate lawyer with strong
financial and commercial acumen who has over 25 years combined expertise in the mining, agricultural and
property industries. She has extensive experience in advising on corporate, financial, governance and commercial
matters, including mergers and acquisitions and equity capital markets. In addition to private practice law firm
experience, Ms Scotney was legal counsel at an ASX listed global mining services company where she specialised
in international supply and distribution contracts for mining tools and equipment.
Ms Scotney serves as a non-executive director for ASX listed Minerals 260 Limited (ASX:MI6) and is a Commissioner
with the Insurance Commission of Western Australia. Ms Scotney is also a member of a private company
responsible for the operation of a high performing commercial livestock and cropping enterprise providing
financial and legal oversight.
During the past three years Ms. Scotney has also served as a Director of the following listed companies:
Company
Date appointed
Date ceased
Minerals 260 Limited
1 November 2021
-
Zenith Minerals
5 May 2022
7 February 2023
Interest in shares and options at the date of this report:
370,223 ordinary fully paid shares
37,290 Non-Executive Director share rights
Committees
Chair of the Audit and Risk Committee
Sustainability Committee
Company Secretary
Sarah Standish, BA, LLB (Hons), GAICD
Ms Standish is an experienced General Counsel and Company Secretary, with expertise and skills in leading legal,
risk, compliance and governance functions in ASX listed and international companies. Ms Standish has been a
registered legal practitioner for over 18 years and has a track record of working within organisations to develop,
enhance and embed fit for purpose legal, risk, governance and compliance frameworks and systems. Her most
recent previous roles were as General Counsel and Company Secretary of St Barbara Limited and General Counsel
of IMDEX Limited. Ms Standish acts as a trusted advisor and business partner, operating in a commercially
pragmatic way and is well versed in building and developing small teams in the organisations she has been
employed.
Ms Standish also has experience as a Non-Executive Director of non-profit organisations and is a keen mentor
through various formal and informal channels.
De Grey Mining 2024 Annual Report | 51
Chief Financial Officer
Peter Canterbury, BBus CPA
Mr Canterbury is an experienced mining executive and Certified Practicing Accountant with substantial experience
in leading ASX-listed mining companies, most recently as MD of ASX-listed Triton Minerals and CEO of Bauxite
Resources. Peter has as a broad skillset spanning financial and corporate management, accounting, project
financing, feasibility studies, contract negotiation and mining operations. He has held senior roles within the
mining industry for close to 30 years. Previously CFO and Acting CEO of Sundance Resources, where he played a
lead role in rebuilding the company following a plane accident in 2010 and was instrumental in negotiating the
Mining and Development convention for Sundance in Cameroon and Republic of Congo for the US$5 billion iron
ore mine, rail, and port project. His previous positions include CFO of Dadco Europe with its alumina and bauxite
operations in Europe and Africa and several positions with Alcoa in finance, marketing, and project development.
Peter brings highly relevant financial expertise to support De Grey’s ambitions of becoming a Tier 1 gold producer
from Hemi.
Principal Activities
The principal activity of the consolidated entity during the year was our focus on the 100% owned Hemi Gold
Project in the Pilbara region of WA, and includes the large scale, high value, near surface 2019 Hemi gold discovery.
The Hemi discovery is an intrusion-hosted form of gold mineralisation new to the Pilbara region and shows a scale
of mineralisation not previously encountered in the Mallina Basin. Gold mineralisation at Hemi is hosted in a series
of intrusions associated with stringer and disseminated sulphide rich zones.
In September 2023, the Company completed its DFS a major de-risking milestone in that it provides much greater
detail and confidence on the proposed development scenario for Hemi.
De Grey is targeting a Final Investment Decision (FID) within the coming 12-months and to be then followed by
an expected two-year construction phase into first production by the second half of calendar 2026, subject to
receipt of regulatory approvals.
Financial Review
The consolidated loss after tax for the year ended 30 June 2024 was $17,219,717 (FY23: $19,005,221). Details of
our operations is included in the Managing Director’s report and operations review, preceding this report.
Earnings per share
The basic loss per share for the year ended 30 June 2024 was 0.93 cents per share (FY23: 1.23 cents per share).
Dividends
No dividends were paid or declared during the financial year (FY23: None). No recommendation for payment of
dividends has been made.
Governance
We have adopted Corporate Governance policies representing the system of control and accountability for the
administration of corporate governance. De Grey Mining’s Board is committed to managing these policies and
procedures in a manner which is directed at achieving our objectives in a proper and ethical manner.
To the extent they are applicable to De Grey, the Board has adopted the ASX Corporate Governance Council’s -
Corporate Governance Principles and Recommendations 4th Edition.
To read the Company’s 2024 Corporate Governance Statement and Appendix 4G visit our website.
Matters subsequent to the end of the financial year
There have been no other matters or circumstances occurring subsequent to the end of the financial year that has
significantly affected or may significantly affect the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
Likely developments and expected results
There are no further developments or expected results other than those which have been reported under matters
subsequent to the end of the financial year.
De Grey Mining 2024 Annual Report | 54
LETTER FROM THE CHAIR OF THE
REMUNERATION AND NOMINATION
COMMITTEE
Dear Shareholders,
On behalf of the Board, I am pleased to present De Grey Mining Limited’s (De Grey, or the Company)
Remuneration Report for the financial year to 30 June 2024 (FY24).
FY24 Performance Overview
Our exciting journey has continued in the past financial year as we have completed the development studies phase
for the Hemi Gold Project and begin our transition from exploration towards gold production.
As De Grey makes its transition, we recognise that driving performance and retention are critically important levers
to advance this goal. In light of this, the Remuneration and Nomination Committee (Committee) has re-examined
our remuneration strategy, which has yielded some key changes we believe will better support having the right
people in place to achieve our business objectives. These changes have been outlined in greater detail below.
Notwithstanding the continued support of our shareholders (Remuneration Report approval of 79% at the 2023
AGM), the Company welcomes feedback from both shareholders and proxy advisors alike, which serves as a vital
input into the evolution of our remuneration programs. In response to feedback received from our investors and
proxy advisors in 2023, we have enhanced our remuneration disclosures and implemented changes to the
remuneration structure, including:
•
New LTIP framework with clear milestones that align to the strategic goals of the Company; and
•
Revised STI objectives.
The structural changes have been made in consultation with external remuneration consultants as appropriate.
We consider that these changes support the concept of being fair and reasonable in all remuneration matters.
I would like to take this opportunity to thank the De Grey Board for their support, including my fellow Committee
members, for generously giving their time and expertise over the last financial year.
To our stakeholders, we look forward to your ongoing feedback and support as the Company continues its next
phase of growth.
Yours sincerely,
Peter Hood
Chair of Remuneration and
Nomination Committee
De Grey Mining 2024 Annual Report | 55
This Remuneration Report (Report) for the year ended 30 June 2024 outlines the remuneration arrangements of
the Company in accordance with section 300A of the Corporations Act 2001 (Cth) (Act). This information has been
audited as required by section 308(3C) of the Act, together with the Company’s policies regarding key
management personnel (KMP) remuneration governance.
Who is covered by this report
This Report details the remuneration arrangements for De Grey’s key management personnel (KMP). KMP are
classified as those persons who, either directly or indirectly, have authority and responsibility for planning,
directing, and controlling the major activities of the Company, including all Directors (whether Executive or Non-
Executive).
The KMP over FY24 comprised of the:
▪
Executive Directors and Senior Executives (Executive KMP); and
▪
Non-Executive Directors (NEDs).
The table below outlines each KMP of De Grey and their movements during the year ending 30 June 2024.
Name
Position
Term as KMP
Executive KMP
Current members
Glenn Jardine
Managing Director
Full Financial Year
Peter Canterbury Chief Financial Officer
Full Financial Year
Peter Holmes
Project Director
Full Financial Year
Sarah Standish
General Counsel and Company Secretary
19/2/24 onwards
Former members
Craig Nelmes
Company Secretary
1/7/23 – 1/3/24
Andrew Beckwith Technical Director
1/7/23 – 18/7/23
Philip Tornatora1
General Manager - Exploration
Full Financial Year
Non-Executive Directors
Current members
Simon Lill
Independent Non-Executive Chair
Full Financial Year
Peter Hood AO
Lead Independent Non-Executive Director
Full Financial Year
Paul Harvey
Independent Non-Executive Director
Full Financial Year
Emma Scotney
Independent Non-Executive Director
Full Financial Year
Andrew Beckwith Non-Executive Director
19/7/23 onwards
1 Based on the current strategic direction of the Company, the GM – Exploration role is no longer considered to
be a KMP.
De Grey Mining 2024 Annual Report | 56
FY24 REMUNERATION SUMMARY
The summary table below provides an overview of the FY24 Remuneration outcomes per element. Where
adjustments have been made, these have been further specified.
Executive Fixed
Remuneration
Eligible
executives
received an
average increase
of 6.5%
An executive remuneration review was conducted by external remuneration consultants
whereby each incumbent’s remuneration was assessed against relevant external market
comparators, together with individual performance, role complexity and internal relativity
to yield revised fixed remuneration outcomes.
See Section: Statutory Remuneration Tables and Additional Disclosures, for more detail
Short-Term
Incentive
(STI) outcomes
Average
Executive
outcome of
81.5% of
Maximum
Awarded
(MD: 78%)
The FY24 corporate performance measures include the following:
▪
Project Development (Hemi)
▪
Development Studies
▪
Resource Growth
▪
Company Share Price
▪
Financial
▪
Implementation of the WHS System and culture
Role specific performance measures include the following:
▪
Health & Safety
▪
Budget
▪
Business Development
▪
Sustainability
▪
Community Relations
▪
People, and
▪
Behaviour and Culture
Assessment of these measures resulted in an average 81.5% STI outcome (MD: 78%),
relative to the STI targets set.
See Section: Executive Remuneration Outcomes for FY24 for more details
Long-Term
Incentive
(LTI) outcomes
None for FY24
No performance testing was undertaken for the year ended 30 June 2024, as there was no
LTI programme due to vest.
See Section: Executive Remuneration Outcomes for FY24 for more details
Non-Executive
Director (NED)
fees
5.1% Increase
During FY24, the Board reviewed the NED fee structure (including its policy on base and
committee fees), considering relevant benchmarking data and the responsibilities of
individual committee members.
From 1 July 2024, there has been an increase to NED fees of 5.1%.
There has been no change to the NED fee pool in FY24.
See Section: FY24 Non-Executive Director Remuneration for more details
Other Changes to
Executive
Remuneration in
FY24
Ongoing
To enhance alignment with shareholder and proxy advisor feedback, the Company applied
the following changes to the FY24 remuneration structures:
•
Enhance disclosures relating to STI and LTI structures and the underpinning
performance measure assessment approach to create greater alignment with
shareholder expectations.
The Board welcomes ongoing shareholder feedback to progressively craft remuneration
reports that provide continued enhanced disclosures
De Grey Mining 2024 Annual Report | 57
REMUNERATION GOVERNANCE
The following diagram represents De Grey’s governance framework for KMP remuneration setting and decision
making, and the role and responsibilities fulfilled by various stakeholders involved in the remuneration process:
The Remuneration and Nomination Committee operates under a Board approved Charter. Its function is to assist
the Board in fulfilling its corporate governance responsibilities with respect to remuneration by reviewing and
making appropriate recommendations.
The Remuneration and Nomination Committee consists of Lead Independent Non-Executive Director Peter Hood
(the Committee Chair), Paul Harvey, an Independent Non-Executive Director and Simon Lill, the Independent Non-
Executive Chair of the Board. The Managing Director attends meetings, by invitation, to make management
presentations and appropriate recommendations with respect to his direct reports and all other employees but
has no vote with respect to matters before the Committee. A standing invitation is also made to other Non-
Executive Directors to attend and observe meetings. The Committee has in place appropriate procedures to
appropriately manage conflicts of interest.
Board
Maintains active oversight in the governance of De Grey's remuneration strategies.
Possesses overall responsibility in ensuring the effectiveness of remuneration outcomes.
Reviews and approves executive remuneration and incentives.
Sets aggregate NED fees, subject to shareholder approval.
Remuneration and Nomination Committee
Provides recommendations to the Board relating to the setting and reviewing of the remuneration
framework, and supporting strategy and practices.
Provides Executive & NED remuneration recommendations.
Note: The Corporate Governance Statement and Remuneration Committee Charter provides greater detail regarding the
responsibilities of this Committee. This Charter is available on the Company website at
https://degreymining.com.au/corporate-governance/
Managing Director
Provides recomendations of Senior Executive
remuneration (excl. own role).
Undertakes the evaluation of Senior Executive
performance.
Oversees the implementation of Executive
remuneration, on the basis of performance
outcomes.
External Remuneration Advisors
Provide external, independent remuneration
advice and information, as required, through
the provision of market insights and advice.
De Grey Mining 2024 Annual Report | 58
Engagement of External Remuneration Advisors
Expert advice and recommendations may be sought from independent external remuneration advisors who may
be engaged either directly by the Board or the Remuneration and Nomination Committee to provide information
and advice relating to KMP remuneration. Any information or advice provided by consultants is done so
objectively and is free from any influence from either Executives and/or Management. Over the last year, advice
has been sought from RemSmart Pty Ltd and The Reward Practice Pty Ltd on Executive and Non-Executive Director
remuneration benchmarking. No remuneration recommendations as defined in section 9B of the Corporations Act
2001 (Cth) were provided by the consultant during the period.
Securities Trading Policy
The Company’s Securities Trading Policy prohibits a KMP (who are granted equity-based payments as part of their
remuneration) from:
•
dealing in or procuring another person to deal in Company securities or listed securities of another entity
if they have information, know or ought to reasonably know inside information in relation to Company
securities and/or those securities of another entity; or
•
the Company has applied Blackout Period provisions to all De Grey personnel.
Further detail regarding the governance of this Policy can be found on our website.
De Grey Mining 2024 Annual Report | 59
EXECUTIVE REMUNERATION STRATEGY AND COMPONENTS
FOR FY24
Our Remuneration Guiding Principles
Our Executive Remuneration Strategy is prefaced on our anchoring Remuneration Principles. Our strategy is to
ensure that remuneration attracts and retains staff with the critical skills and drive that is key to unlocking De
Grey’s value and growth ambitions, as the Company transitions from explorer to developer, to producer. The
Company aims to propel employees’ efforts and reward high performing employees for successfully delivering on
our strategy, attaining our aspirant growth targets and driving sustainable business performance.
Our remuneration strategy is based on the following principles:
•
attracting and retaining high performing, Executives;
•
recognising and rewarding Executives in line with achievement of strategic objectives;
•
moving “in-step” with our strategic shift in focus from being an exploration-oriented organisation through
construction and into a production focused organisation;
•
maintaining competitiveness in the industry and alignment to market conditions; and
•
maintaining a flexible approach.
Given the critical stage on the journey that De Grey is currently on in transitioning from an explorer to developer,
the retention of our Executives remains critical, and our remuneration offerings are reflective of this intention. As
the Company continues to evolve and grow in the coming years, remuneration imperatives will continue to be
examined and adjusted accordingly to recognise and reward our Executives’ contributions.
We remain committed to our Remuneration Principles being applied consistently and fairly throughout the Group
to ensure that an appropriate balance is achieved amongst all stakeholders, including:
•
Providing competitive market-related remuneration packages to employees;
•
Supporting both operational and strategic requirements; and
•
Maintaining the interests of our shareholders.
Executive Employment Agreements
The remuneration and other terms of employment for the Executive KMP are formalised in their respective
Executive Employment Agreements. The major provisions of the agreements relating to remuneration for the year
ended 30 June 2024 are set out in the table below:
Period of Notice
Name
Position held at close of FY24
By De Grey
By KMP
Glenn Jardine
Managing Director
6 months
6 months
Peter Canterbury
Chief Financial Officer
4 months
4 months
Peter Holmes
Project Director
4 months
4 months
Sarah Standish
General Counsel and Company
Secretary
4 months
4 months
De Grey Mining 2024 Annual Report | 60
Managing Director
Mr Jardine commenced as Managing Director on 4 May 2020, on a permanent basis, with the termination notice
periods, as outlined above.
The Managing Director receives fixed remuneration (including statutory superannuation contributions) of
$620,000 per annum. The Managing Director participates in the STI and LTI plan as indicated above at the
discretion of the Board with a target STI set as 50% of Total Fixed Remuneration (maximum 50%) and LTI
opportunity set as 74% of Total Fixed Remuneration.
Other KMP Executive
Executive KMP participation in the incentive programs is at the discretion of the Board and via invitation annually.
Sections below disclose the STI and LTI arrangements respectively for Executive KMP over FY24.
Executive Remuneration Composition and Approach to Setting Remuneration
Executive KMP remuneration at De Grey is comprised of a mix of Total fixed remuneration (base salary plus
superannuation, capped at $ 27,500 for FY24) and ‘at risk’ remuneration (consisting of STI and LTI)), to attract and
retain high performing Executives.
The diagram below provides an overview of the different Executive remuneration components within the De Grey
remuneration framework.
De Grey Mining 2024 Annual Report | 61
Feature
Total Fixed Remuneration
(TFR)
Variable Remuneration (VR)
Base Salary + Super
Short Term Incentive
Long Term Incentive
Purpose
Provides remuneration that is
reflective of the technical
acumen, knowledge, and
experience of Executives and set
in reference to market data.
Rewards Executive KMP for
outperformance with respect to a
balanced Scorecard of financial and
non-financial performance measures
and is assessed on an annual basis.
Links remuneration received by
Executive KMP closely to the
Company’s performance, aligning
it with the returns generated for
our shareholders over the long
term. This is designed to award
performance over a three-year
period.
Delivery
Base Salary and Superannuation,
as per the Superannuation
Guarantee (Administration) Act
1992
Awarded in cash, based on an
assessment of performance against a
Key Performance Indicator (KPI)
Scorecard or can be settled in equity, at
Board discretion.
Awarded in Performance
Rights, which potentially vest
after three years, to the extent
that performance and service
conditions have been
satisfied. Where vesting
conditions are not satisfied,
the Board retains the
discretion to adjust the level
of vesting to the extent
allowed for under the Plan
Rules and subject to ASX
Listing Rules and applicable
laws.
Alignment
to
Performance
Set after considering:
■ The trajectory of the
Company’s growth and
realisation of key Group
milestones
■ Developer and producer peer
market assessments
■ The Mining and Metals
market and scarcity of talent
■ Executive KMP’s relevant
experience and current
performance
■ The complexity of an
Executive KMP’s role and
associated responsibilities
An FY24 KPI Balanced Scorecard was
developed by each Executive in
conjunction with the Managing
Director, recommended by the
Committee and approved by the Board.
Each Executive is assessed utilising a
balanced KPI Scorecard rating process,
with associated criteria and weightings
The STI measures for each Executive
were chosen to best align their
performance with the business
objectives included in the Strategic
Plan.
Reflects the variable
remuneration awarded to
Executive KMP based on the
performance against
Performance Milestones
relating to overall Company
performance and aligned with
shareholder value.
De Grey Mining 2024 Annual Report | 62
Executive Remuneration Pay Mix
In FY24, the Executive Remuneration framework consisted of fixed remuneration and at risk remuneration
(consisting of both Short Term Incentives and Long Term Incentives), as outlined below.
Executive Remuneration Level and Mix
How is Executive
remuneration
and the pay mix
determined?
The pay mix is defined as the balance targeted between the major components of remuneration that have been
adopted by De Grey, namely:
▪
Fixed remuneration; and
▪
At risk remuneration, which consists of:
o
Short-Term Incentives (STIs); and
o
Long-Term Incentives (LTIs)
The Company has a pay mix that supports the principles that the variable remuneration of Executive employees
should typically form a significant portion of their expected total remuneration, to drive appropriate levels of
performance and achieving stretch targets. Further, an appropriate balance should be targeted between
rewarding operational performance (through the application of STIs) and rewarding long-term sustainable
performance (through the application of LTIs).
The Company aims to reward Executives appropriate to their position, responsibilities and performance within
the Company, and that which is aligned with targeted market comparators, including industry peers with
comparable market capitalisation and other companies with which De Grey competes for talent. De Grey is in a
unique position as a gold development company with a market capitalisation of ~ $3 billion. Most comparator
development companies have smaller market capitalisations or are gold or mineral producers.
Executive Remuneration levels are reviewed annually through a combination of inputs that considers criteria
regarding eligibility for a pay increase, industry-specific market data, insights into remuneration trends, the
performance of the Company and individual, external market conditions.
The chart below summarises the MD’s and other KMP’s remuneration mix, based on fixed remuneration STIs
and LTIs. The remuneration mix is considered appropriate for De Grey based on the Company’s current phase
of the business including the short term and long-term business priorities and the retention of Executives.
52%
62%
20%
17%
28%
21%
Managing Director
Other KMP's
Pay Mix Composition
Fixed Remuneration
Short Term Incentive
Long Term Incentive
De Grey Mining 2024 Annual Report | 63
Fixed Remuneration
(Base salary and other
benefits)
How is base salary and
other benefits
reviewed and
approved?
Base salary and other benefits are reviewed annually based on external market data, and
any changes for Executives are subject to approval by the Board, considering
recommendations from the Remuneration and Nomination Committee.
FY24 Short Term Incentive (STI) Plan
Short Term Incentives (STI)
What is the
purpose?
Ensures that a portion of remuneration is variable, at-risk and linked to the delivery of agreed
operational plan targets that support the Company’s strategic priorities, over an annual period.
How is it paid?
Awarded in cash or settled in equity (at the discretion of the Board) on successful completion of the
short term incentive criteria assessment, a recommendation from the Committee and approval of
the Board.
Who is eligible
to participate?
Eligibility to participate in the STI is at the recommendation of the Committee and approval of the
Board. For the FY24 period, Executive KMP’s are eligible to participate in the STI Plan.
What is the
value of the STI
award
opportunity?
The STI target opportunity is set as a percentage of fixed remuneration and is determined annually,
as part of the Executive remuneration review process.
The maximum STI opportunity for the Managing Director in 2024 financial year is 50% of base salary.
Other KMP’s have a maximum STI opportunity of 30-45% of base salary, if the 65% minimum
scorecard result is exceeded.
What is the
performance
period?
The performance period is aligned to the financial year of the Company, which starts on 1 July and
ends 30 June.
What is the
gateway?
The Executive must achieve a score of at least 65% in respect to the short term incentive criteria
(STIC) performance metrics used in guiding the annual review process.
De Grey Mining 2024 Annual Report | 64
Short Term Incentives (STI)
What are the
performance
criteria and
how do they
align with
business
performance?
The performance criteria consist of several Key Performance Indicators (KPIs) The weighting of these
are listed below. Executives will only be eligible for a payment if they achieve at least 65% in respect
to these performance metrics used in guiding the annual review process.
Targets reflect business expectations at that time and may vary from prior year performance,
depending on whether strategic goals have shifted and still reflect the current stage of the company
in its transition from an exploration company to developer as well as prevailing economic and market
conditions. Targets and outcomes are set with a level of stretch in achieving them and may be
adjusted (up or down) to exclude the impacts of uncontrollable circumstances. KMP’s cannot achieve
greater than 100% for a target.
The performance criteria and weightings for the FY24 measures are summarised as follows:
Performance Criteria
Weighting
Hemi Project-Based milestones
[10-20%]
Hemi Development Studies
[10%]
Resource Growth
[10%]
Company Share Price
[10%]
Financial – Funding
[10-20%]
Health and Safety
[10%]
Budget (as adjusted and approved by the Board)
[5-10%]
Business Development
[5-10%]
Sustainability (ESG)
[5%]
Community Relations
[5%]
People
[5%]
Behaviour and Culture
[5%]
How is the
performance
against the STIs
assessed and
how are
payouts
determined?
Where KPI’s are achieved in full, the weighting is awarded. Where they are not, the Board considers
factors that may have contributed to the shortfall and the weighting can be awarded based on
feedback from the Executive on their performance against each STI on a percentage of completion
basis or at the Boards discretion. The result is a score out of 100 and represents the percentage of
the STIP to be awarded.
How is the STI
award treated
at cessation of
employment?
KMP’s Executive Employment Agreement includes provisions to be considered a good leaver.
How is the STI
award treated
upon a Change
of Control?
If a change of control event occurs with respect to the Company, any entitlements or benefits granted
to the Executive in the form of a STIP shall automatically vest and/or be paid out in full
Board
Discretion
The Board reserves the right to adjust the achieved result in the assessment criteria if circumstances
relating to failure of those measures are out of the Executive’s control. The Board will weigh up
factors that have contributed to a failed result to determine the percentage to award.
De Grey Mining 2024 Annual Report | 65
FY24 Long Term Incentive (LTI) Plan
Long Term Incentives (LTI)
What is the
purpose?
Creates a strong link between performance and reward by providing a variable / at risk element of
an eligible employees’ remuneration that focuses on performance and service, over an extended
period. It aims to align the interests of Executive employees with those of shareholders in the
Company to drive long-term performance and to secure an Executive team who are invested in the
realisation of success of the Company.
How is it paid?
The LTI award is made in the form of Performance Rights, in accordance with the recently revised
De Grey Long Term Incentive Plan.
This will be subject to the achievement of specified Performance Milestones relating to overall
Company performance. Performance Rights may vest at the end of the measurement period,
having regard to the extent to which performance hurdles have been satisfied. The Board (in their
absolute discretion) may adjust the level of vesting to the extent allowed for.
Who are
eligible to
participate?
Eligibility to participate in the LTI is done through a written annual offer letter on or around the
beginning of each Performance Period. The LTIP invitation is issued by the Independent Non-
Executive Chair, on behalf of Board (and under the recommendation of the Committee), to eligible
Executive employees.
Note that NED’s are not eligible to participate.
What is the LTI
opportunity?
The LTI target opportunity is set as a percentage of fixed remuneration and is determined
annually, as part of the Executive remuneration review process.
The maximum LTI opportunity for the Managing Director is 74% of base salary. Other KMP’s have a
maximum LTI opportunity of 56% of base salary, if the 65% minimum is exceeded.
What is the
performance
period?
The FY24 grant of Performance Rights is subject to performance conditions measured over a set of
two performance periods; the once-off transitional Long Term Incentive Program (which is a two-
year Program) and three year Long Term Incentive Program respectively. Both performance periods
commenced on 1 July 2023. Both LTIP’s were granted under the Company’s Employee Incentive
Securities Plan approved by Shareholders at the 2023 Annual General Meeting.
How is
performance
measured?
The LTI is assessed based on the measures below, with associated weightings, for the performance
period.
2 Year LTI
Project
Growth
&
Discovery
Shareholder Value
Weighting
50%
25%
25%
Performance
(Vesting)
Condition
The Company
achieving 50%
completion of the
construction of the
Hemi Gold Project
Processing Facility
and receiving
required secondary
operational
approvals from
DMIRS and other
regulatory
authorities. 30 June
2025 is the date of
assessment of this
milestone.
The Company
achieving a 4Moz
Au increase from
the start of the
measurement
period (being 1
July 2023) in the
Hemi Gold
Project JORC
Inferred Mineral
Resource
classification. 30
June 2025 is the
date of
assessment of
this milestone.
The Company’s
Share price
demonstrating
outperformance of
the Van Eck GDXJ
index across the
measurement period
(from 1 July 2023 to
1 July 2025), with
the outperformance
representing a
percentage growth
of Share price
greater than that of
the GDXJ index. 30
June 2025 is the
date of assessment
of this milestone.
The two-year LTIs were implemented as an interim step and are not planned to be repeated
as the Company moves to a rolling three-year LTI plan.
De Grey Mining 2024 Annual Report | 66
3 Year LTI
Project
Growth
&
Discovery
Shareholder Value
Weighting
50%
25%
25%
Performance
(Vesting)
Condition
Production
commencing at the
Hemi Gold Project
and the Company
completing its first
gold pour. 30 June
2026 is the date of
assessment of this
milestone.
The Company
achieving a 6Moz
Au increase from
the start of the
measurement
period (being 1
July 2023) in the
Hemi Gold
Project JORC
Inferred Mineral
Resource
classification. 30
June 2026 is the
date of
assessment of
this milestone.
The Company’s
Share price
demonstrating
outperformance of
the Van Eck GDXJ
index across the
measurement period
(from 1 July 2023 to
1 July 2025), with
the outperformance
representing a
percentage growth
of Share price
greater than that of
the GDXJ index. 30
June 2026 is the
date of assessment
of this milestone.
How is the LTI
calculated?
The LTIP Participating Percentage is based on a percentage of the Eligible Employee’s Total Fixed
Remuneration, as determined by the Board of the Company, in the annual salary review process, as
at the date of the LTIP Invitation.
The Base LTIP Award (being the dollar value of the LTIP Award) is calculated by multiplying an
Executive Employee’s Total Fixed Remuneration (TFR) at the commencement of the Performance
Period by the applicable LTIP Participating Percentage.
How is the LTI
treated at
cessation of
employment?
The Board retains discretion to allow the pro-rata equivalent of unvested Performance Rights to
remain on foot (in part or in full) and be eligible for vesting in the ordinary course (i.e. with no
acceleration of vesting), after the participant ceases employment with the Company, in line with
good leaver provisions for the relevant performance period, provided that:
o
the limitations on termination benefits as outlined in the Corporations Act 2001
(Cth) and ASX Listing Rules are not breached; and
o
those Performance Rights that are not forfeited will be held for possible vesting,
based on performance relative to the vesting conditions, following the end of
the measurement period.
How is the LTI
award treated
upon a Change
of Control?
If a change of control event occurs with the respect to the Company or the Board determines that
such an event is likely to occur, the Board may in its discretion determine the manner in which any
or all of the participant’s Performance Rights will be dealt with, including, without limitation, in a
manner that allows the participant to participate in and/or benefit from any transaction arising
from, or in connection with the Change of Control event. This, however, does not include a
discretion to lapse or forfeit unvested Performance Rights for less than face value (as determined
by an independent expert).
Subject the above, any unvested Performance Rights will automatically vest immediately prior to
the effective date of the Change of Control, or such earlier date as determined by the Board (in its
absolute discretion). Any issue of Shares on conversion of vested Performance Rights shall at all
times be subject to the ASX Listing Rules and Corporations Act 2001 (Cth).
What is the
Malus and
Clawback
provision of LTI
awards?
The Plan rules allow for the Board to forfeit convertible securities in limited circumstances (i.e.
serious misconduct and fraudulent/dishonest actions).
The Plan Rules don’t allow for clawback (i.e. forfeiting vested awards).
De Grey Mining 2024 Annual Report | 67
FY24 EXECUTIVE KMP REMUNERATION OUTCOMES
Company Financial Performance over the past 5 years
The table below sets out information about De Grey Mining’s performance and movements in shareholder wealth
for the past five years, up to and including the current financial year (i.e. 2023-2024):
Company Financial
Performance Element
2024
2023
2022
2021
2020
Net loss ($)
17,219,717
19,005,221
10,536,710
5,250,269
3,976,002
Share price at year end ($)
1.140
1.345
0.81
1.24
0.091
Basic EPS (cents)
(0.93)
(1.23)
(0.77)
(0.41)
(0.41)
Total Dividends per share
-
-
-
-
-
FY24 Fixed Remuneration Outcomes
The Committee, together with the Board, reviews Executive remuneration levels at least annually against relevant
external market comparators, together with individual performance, role complexity and internal relativity. For
FY24, consideration was also given to the Company gearing towards a transition from exploration to production.
The Board also notes that the competition for talent within the Mining and Metals industry remains at an elevated
level, particularly in Western Australia.
The Board will continue to monitor remuneration levels and appropriate remuneration arrangements will be put
in place for any new appointments.
Executive KMP
Position
2024 Fixed Remuneration
2023 Fixed Remuneration
Current members
Glenn Jardine
Managing Director
$620,000
$580,000
Other KMP
Peter Canterbury
Chief Financial Officer
$418,000
$395,000
Peter Holmes
Project Director
$465,000
$169,0371
Sarah Standish
General Counsel and
Company Secretary
$146,2132
-
Craig Nelmes
Company Secretary
$242,1503
$274,000
Former Executives
Andrew Beckwith
Technical Director
$173,238
$315,500
1 Commenced employment on 8 February 2023
2 Commenced employment on 19 February 2024
3 Ceased Employment 1 March 2024
De Grey Mining 2024 Annual Report | 68
FY24 Variable Remuneration Outcomes
STI BALANCED Scorecard and outcomes achieved
Gateway Performance
An STI payment will only be payable to the extent that a minimum of 65% in respect to Short Term Incentive
Criteria (STIC) performance metrics are achieved.
Gateway
Actual outcome
STIC Performance Metrics
(min. 65%)
78-84%
ACHIEVED
In accordance with the FY24 STI assessment approach, the achievement average of 81.5% of the STIC Performance
Metrics resulted in an 81.5% of STI outcome.
Executive Scorecard Performance
De Grey’s Scorecard for the past Financial Year contains a series of Key Performance Indicators. These metrics
were recommended by the Committee and approved by the Board, with associated weightings, in line with what
De Grey needed to achieve during the financial year.
We have also documented the performance rating achieved and supporting rationale below, together with the
STI outcome.
STI outcomes by Executive KMP
Overall STI outcomes for FY24 are determined through the Board’s assessment of actual performance against
expectations, as outlined below. STIs were cash settled subsequent to 30 June 2024.
Executive
STI Opportunity
(as % of Base Salary)
STI Outcome
(% of STI Target)
STI Awarded
($)
Maximum
(at xx% of
Target)
Target
Company
Metric
Individual
Scorecard
Total
Awarded %
Glenn Jardine
50%
50%
42.5%
35.5%
78%
241,800
78%
Peter Canterbury
40%
40%
46.5%
37.5%
84%
140,448
84%
Peter Holmes
45%
45%
42.5%
37.5%
80%
167,400
80%
Sarah Standish1
30%
30%
-
-
-
43,397
100%
1 Commenced employment on 19 February, paid with Board discretion
De Grey Mining 2024 Annual Report | 69
LTI Vesting Outcomes
LTI performance
Regarding FY24 LTIs, there were no rights that were due for testing this year. However, following the assessment
of relevant performance hurdles for the FY22-23 LTI grants, the below was awarded to Executives:
Managing Director award
The following table presents the outcomes of the Managing Director Performance Rights, issued to Glenn Jardine,
for the FY24 Financial Year. The value of the performance rights has been presented, as the third and final tranche
due was on 15 September 2023.
Executive KMP
Face Value of
Performance
Rights
% of
Performance
Rights earned
% of
Performance
Rights
forfeited
Target
Price
Actual Price
Actual number of
Performance Rights
issued
Glenn Jardine
$100,000
100%
0%
$1.266
$1.305
94,738
De Grey Mining 2024 Annual Report | 70
FY24 NON-EXECUTIVE DIRECTOR REMUNERATION
On appointment to the Board, all Non-Executive Directors (NED’s) enter into a service agreement with the
Company in the form of a letter of appointment.
The Board’s policy is to remunerate NED’s at market rates for their time commitment, and responsibilities
undertaken during the financial year. De Grey reviews the remuneration of NED’s on an annual basis and considers
the following when setting fees for our Non-Executive Directors:
•
NED Fees paid by comparator organisations;
•
Degree of increase applied for NED fees, across the market (generalised), as well as according to a
designated comparator group;
•
Time commitments and additional responsibilities (if any), placed on NEDs by new legislation and evolving
corporate governance principles; and
•
Overall market inflation.
These fees are recommended by the Committee and approved by the Board.
Over the last year, De Grey undertook a comprehensive NED benchmarking exercise by external advisors, which
examined actual total fees paid to Non-Executive Chairs and Non-Executive Directors and NED fee pools.
NEDs are not entitled to retirement benefits other than statutory superannuation or other statutory required
benefits. Consistent with Australian corporate governance practice and to demonstrate independence, NEDs do
not participate in share or bonus schemes designed for Executive KMP or employees but may elect to participate
in the Non-Executive Directors Share Plan. At the start of each financial year, NED’s can receive up to a $50,000
portion of their annual remuneration base fee in Share Rights, subject to obtaining shareholder approval. While
there is no formalised minimum shareholding requirement within De Grey, the Company does encourage NED’s
to own shares. The acquisition and ownership of these shares is subject to the De Grey Securities Trading Policy.
In addition to the above, NEDs may provide additional consulting services to the Company, at a rate approved by
the Board. No such amounts were paid to Directors during the current or prior year.
Going forward, a more contemporary “fee sacrifice” arrangement will be adopted, to better align to market
practices. Details pertaining to the structure and particulars of the “fee sacrifice” are covered below.
De Grey Mining 2024 Annual Report | 71
FY24 Non-Executive Director Fees
The Company’s NED fees are set to attract high calibre, experienced Directors. The Board is responsible to ensure
the NED fee arrangements are reasonable and appropriate, producing satisfactory outcomes that fall within the
fee limit. The remuneration of Non-Executive Directors consists of Director Fees and Committee Fees. Committee
Fees are paid in addition to Director Fees to recognise the additional time commitment required by Non-Executive
Directors who serve these Committees.
The following outlines the elements of the NED fee policy applicable for FY24:
Board and Committee Fees
(inclusive of Superannuation)
Chair
Member*
2024
2023
2024
2023
Board
$245,000
$210,000
$164,000
$157,500
Audit and Risk Committee
$15,600
$15,000
$7,800
$7,500
Remuneration and Nomination Committee
$15,600
$15,000
$7,800
$7,500
Sustainability Committee
$15,600
$15,000
$7,800
$7,500
The minimum required employer superannuation contribution up to the statutory maximum is paid into each
Non-Executive Director’s nominated eligible fund. The above fees are inclusive of superannuation.
*In addition to the Member fees, the following additional fees are paid to the Lead Independent Director:
Lead Independent Director Fee
(inclusive of Superannuation)
2024
2023
$15,000
$10,000
Fee pool
NED fees are paid from an aggregate fee pool limit (AFPL or fee pool), which is periodically approved by
shareholders at De Grey’s AGM. The maximum aggregate amount of fees that can be paid to NEDs is subject
to approval by shareholders at the AGM. The latest determination was at the 2021 AGM when shareholders
approved an aggregate fee pool of $1,500,000 per annum.
Actual fees paid to NEDs for FY24 was $868,838, as the cash component and $156,037 as Non-Executive
Director share rights.
Other
arrangements
NEDs may be entitled to fees or other amounts, as the Board determines, where they perform duties outside
the scope of the ordinary duties of a director. They may also be reimbursed for out-of-pocket expenses
incurred.
NEDs are not eligible to receive termination payments under the terms of the appointments.
De Grey Mining 2024 Annual Report | 72
FY24 Non-Executive Director Statutory Remuneration Disclosures
Outlined below are the fees paid to Non-Executive Directors in 2023-24, prepared in accordance with the
requirements of the Corporations Act 2001 (Cth) and the relevant Australian Accounting Standards.
Short Term Benefits
Post Employment
Benefits
Name
Year
Director Fees
Allowance
Superannuation
Statutory Total
Current Non-Executive Directors
Simon Lill
2024
234,775
-
25,825
260,600
2023
205,045
-
19,955
225,000
Peter Hood AO
2024
160,200
-
-
160,200
2023
154,375
-
-
154,375
Paul Harvey
2024
123,784
-
13,616
137,400
2023
112,074
-
14,908
126,982
Emma Scotney
2024
123,784
-
13,616
137,400
2023
54,473
-
7,195
61,668
Andrew Beckwith1
2024
156,374
-
16,864
173,238
2023
315,500
-
27,500
343,000
Total fees
2024
798,917
-
69,921
868,838
2023
841,467
-
69,558
911,025
1 Andrew Beckwith retired as an executive director effective 19 July 2023. He continued to serve the Board as a non-executive director. This table should be read
together with the executive table for Andrew’s salary comparison.
Non-Executive Directors Exercising Non-Executive Director Share Plan: Outcomes
The following table below presents the outcomes of the Non-Executive Directors who elected to receive a portion
of their annual remuneration base fee in Share Rights, under the Non-Executive Director Share Plan (NED Share
Plan), subject to having attained shareholder approval, between 1 July 2023 and 30 June 2024.
NED
Date of Shareholder
Approval
Number of Rights
Issued
Face Value of Shares
(30 day VWAP as at
1 July 2023)
Emma Scotney
23/11/2023
18,888
$25,000
Emma Scotney
23/11/2023
37,290
$50,000
Peter Hood
29/11/2021
37,290
$50,000
Paul Harvey
24/11/2022
37,290
$50,000
De Grey Mining 2024 Annual Report | 73
PLANNED REMUNERATION CHANGES FOR FY25
During FY24, the Company’s Executive remuneration framework was reviewed. This took into account inputs from
several avenues, including the consideration of both shareholder and proxy advisor feedback, market insights
from external remuneration consultants and the Company’s current transition, moving from an explorer to focus
on the construction phase of the Hemi project. Consequently, the following key changes to Executive
remuneration arrangements are planned for FY25. These changes have been made to ensure a continuation of
alignment with current business need, as well as near-future objectives.
Further details will be provided in the FY25 Remuneration Report.
Remuneration Element
FY25 Approach
Strategy
(Pertaining to Fixed Remuneration,
Malus and Clawback, Framework
Policy etc.)
•
No major changes are proposed to either the remuneration strategy or the
supporting remuneration framework
Base Salary
•
No changes are proposed to awarding increases to KMP’s Base salary.
STI
•
Measures used to calculate a KMP’s result are reviewed annually and are closely
aligned to the business objectives for FY25.
LTI
•
Regarding the LTI, there will be a move from the transitional, once-off two year
Long Term Incentive Plan, to a more traditional three year Long Term Incentive
Plan, which aligns better with market practice and allows for more sustained
long-term value creation.
NED Fee Sacrifice
•
A new, simplified Non-Executive Director Share Plan has been approved, offering
greater alignment to market practice.
•
NED’s may still elect to sacrifice some or all of their fees to acquire securities in a
tax effective manner, under the New Plan.
•
If a Director elects to participate in the Plan, deductions will be made from fees
payable to that director over the financial year, reflecting the amount the
director has determined to sacrifice.
•
Share rights will be granted twice each year – shortly following half year results
(to reflect fees sacrificed for the first six months of the FY) and the full year
results (to reflect fees sacrificed for the last six months of the FY)
•
Share rights will vest approximately six months after being granted and
automatically convert into fully paid ordinary shares, subject to a disposal
restriction (i.e. restricted shares).
De Grey Mining 2024 Annual Report | 74
STATUTORY REMUNERATION TABLES AND ADDITIONAL DISCLOSURES
Statutory Remuneration Table of FY24 KMP
The following table sets out a consolidated total remuneration view for Executive KMP in FY24 and FY23, calculated in accordance with statutory accounting
requirements.
Short-term benefits
Post-employment benefits
LTI Share-
based
payments
Long service leave
Total
% Performance related
Year
Cash Salary
Bonus
Leave
Other
Termination
Super
Executive KMP
Glenn Jardine
FY24
592,500
241,800
25,051
-
-
27,500
330,204
15,362
1,232,417
46%
FY23
552,500
218,400
29,751
-
-
27,500
411,680
10,428
1,250,259
50%
Andrew Beckwith1
FY24
15,775
-
1,212
-
-
1,398
-
9,184
27,569
0%
FY23
315,500
124,500
(3,640)
-
-
27,500
281,958
12,874
758,692
54%
Other KMP
Peter Canterbury
FY24
377,839
140,448
(3,015)
12,661
-
27,500
188,526
7,092
751,051
44%
FY23
367,500
117,600
14,135
-
-
27,500
333,407
2,712
862,854
52%
Peter Holmes2
FY24
437,500
167,400
28,598
-
-
27,500
270,584
1,041
932,623
47%
FY23
155,930
60,000
11,992
-
-
12,107
-
162
240,191
25%
Sarah Standish3
FY24
135,628
43,397
6,134
-
-
10,585
28,651
136
224,531
32%
FY23
-
-
-
-
-
-
-
-
-
-
Craig Nelmes
FY24
174,669
43,549
3,412
-
194,182
27,500
26,252
(21,324)
448,240
16%
FY23
246,500
56,550
6,163
-
-
27,500
143,533
10,106
490,352
41%
Philip Tornatora
FY23
315,500
111,800
(2,427)
-
-
27,500
271,769
11,311
735,453
52%
Totals
FY24
1,733,911
636,594
61,392
12,661
194,182
121,983
844,217
11,491
3,616,431
FY23
1,953,430
688,850
55,974
-
-
149,607
1,442,347
47,593
4,337,801
1 Mr Beckwith resigned as an Executive KMP on 18 July 2023 and became a NED effective immediately.
2 Peter Homes commenced employment on 21 February 2023
3 Sarah Standish commenced on 19 February 2024
De Grey Mining 2024 Annual Report | 75
Statutory Remuneration Table of FY24 NEDs
The following table outlines the statutory and audited remuneration of NEDs:
Short-term benefits
Post-employment
benefits
Share-based payments
Name
Board Fees
Super
NED Share Rights
Total
Simon Lill
FY24
234,775
25,825
-
260,600
FY23
205,045
19,955
7,201
232,201
Peter Hood AO
FY24
160,200
-
53,325
213,525
FY23
154,375
-
43,605
197,980
Paul Harvey1
FY24
123,784
13,616
53,325
190,725
FY23
112,074
14,908
67,801
194,783
Emma Scotney2
FY24
123,784
13,616
49,387
186,787
FY23
54,473
7,195
23,925
85,593
Andrew Beckwith3
FY24
140,599
15,466
-
156,065
FY23
-
-
-
-
Samantha Hogg4
FY23
58,882
6,183
-
65,065
Bruce Parncutt5
FY23
25,341
2,661
-
28,002
Eduard Eshuys6
FY23
25,909
2,720
-
28,629
Totals
FY24
783,142
68,523
156,037
1,007,702
FY23
636,099
53,622
142,532
832,253
1 Paul Harvey was appointed on 4 July 2022
2 Emma Scotney was appointed on 9 January 2023
3 Mr Beckwith resigned as an Executive KMP on 18 July 2023 and became
a NED effective immediately
4 Samantha Hogg resigned on 17 October 2022
5 Bruce Parncutt resigned on 7 September 2022
6 Eduard Eshuys resigned on 8 September 2022
KMP Shareholdings: Shareholdings, Unlisted Option Holdings and Performance Rights Holdings
Shareholdings of Key Management Personnel
Opening
Balance
1 July 2023
Received on
exercise of
rights &/or
options1
Shares
acquired on
market
Disposals
during the
year
Held at
resignation
Other
changes
during the
year
Closing
Balance
30 June
2024
No.
No.
No.
No.
No.
No.
No.
Executive Directors
Glenn Jardine
170,846
676,310
-
(100,000)
-
-
747,156
Non-Executive Directors
Simon Lill
13,919,629
-
288,789
(250,000)
-
-
13,958,418
Peter Hood AO
3,205,000
-
295,000
(250,000)
-
-
3,250,000
Paul Harvey
-
53,177
179,848
-
-
-
233,025
Emma Scotney
-
18,888
351,335
-
-
-
370,223
Andrew Beckwith
6,654,875
440,700
22,727
(750,000)
-
-
6,368,302
Other KMP
Craig Nelmes2
4,943,253
212,151
-
(347,288)
(4,808,116)
-
-
Sarah Standish
-
-
-
-
-
-
-
Peter Canterbury
29,000
540,015
51,000
-
-
-
620,015
Peter Holmes
-
-
-
-
-
-
-
TOTAL
28,922,603
1,941,241
1,188,699
(1,697,288)
(4,808,116)
-
25,547,139
1Shares received on the exercise of 1,774,438 options carried an exercise price of $0.00. The share price on the date of exercise was $1.115.
Shares received on the exercise of 94,738 rights carried an exercise price of $0.00. The share price on the date of exercise was $1.115. Shares
received on the exercise of 53,177 rights carried an exercise price of $0.00. The share price on the date of exercise was $1.235. Shares received
on the exercise of 18,888 rights carried an exercise price of $0.00. The share price on the date of exercise was $1.165.
2 Craig Nelmes resigned on 1 March 2024 and at the time held 4,808,116 shares.
De Grey Mining 2024 Annual Report | 76
Option-Holdings of Key Management Personnel
Opening
Balance
1 July 2023
Options
granted
during the
FY
Options
exercised
during the FY
Options
forfeited
during the
FY
Held at
Resignation
Closing
Balance
30 June
2024
Vested and
Exercisable
30 June
2024
No.
No.
No.
No.
No.
No.
No.
Executive Directors
Glenn Jardine
581,572
-
(581,572)
-
-
-
-
Non-Executive
Directors
Simon Lill
-
-
-
-
-
-
-
Peter Hood AO
-
-
-
-
-
-
-
Paul Harvey
-
-
-
-
-
-
-
Emma Scotney
-
-
-
-
-
-
-
Andrew Beckwith
440,700
-
(440,700)
-
-
-
-
Other KMP
Craig Nelmes1
212,151
-
(212,151)
-
-
-
-
Sarah Standish
-
-
-
-
-
-
-
Peter Canterbury
540,015
-
(540,015)
-
-
-
-
Peter Holmes
-
75,816
-
-
-
75,816
-
TOTAL
1,774,438
75,816
(1,744,438)
-
-
75,816
1 Craig Nelmes resigned on 1 March 2024 and at the time held nil options.
Rights-Holdings of Key Management Personnel
Opening
Balance
1 July 2023
Rights
granted
during the
FY
Rights
exercised
during the
FY
Rights
forfeited
during the
FY
Other
changes
during the
year
Closing
Balance
30 June
2024
Vested and
Exercisable
30 June
2024
No.
No.
No.
No.
No.
No.
No.
Executive Directors
Glenn Jardine
94,738
1,014,716
(94,738)
-
-
1,014,716
-
Non-Executive
Directors
Simon Lill
-
-
-
-
-
-
-
Peter Hood AO
74,993
37,290
-
-
-
112,283
112,283
Paul Harvey
53,177
37,290
(53,177)
-
-
37,290
37,290
Emma Scotney
-
56,178
(18,888)
-
-
37,290
37,290
Andrew Beckwith
-
-
-
-
-
-
-
Other KMP
Craig Nelmes1
-
264,189
-
-
(264,189)
-
-
Sarah Standish
-
356,391
-
-
-
356,391
-
Peter Canterbury
-
579,838
-
-
-
579,838
-
Peter Holmes
-
624,227
-
-
-
624,227
-
TOTAL
222,908
2,970,119
(166,803)
-
(264,189)
2,762,035
186,863
1 Craig Nelmes resigned on 1 March 2024 and at the time held 264,189 rights.
De Grey Mining 2024 Annual Report | 77
Securities Based Remuneration Options and Performance Rights
Securities Based Remuneration – Options
The Company granted 75,816 (FY23: 154,368) options over unissued ordinary shares during the financial year to
Directors and other Key Management Personnel, as part of their remuneration. These are detailed in the table
below:
Grant
Date
Expiry
Date
Exercise
Price
(cents)
Value per
option at
grant
date
(cents)
Granted
Number
Value of
Options
Granted
($)
Vesting
Date
Number
Vested and
Exercisable
Max.
expense to
be
recognised
in future
years ($)
Peter Holmes
30 Aug 23
31 Dec 25
-
143.0
75,816
108,417
31 Dec 24
-
40,795
Options granted to Key Management Personnel under the shareholder approved Employee Option serves as both
remuneration for their past performance and as a mechanism to retain Key Management Personnel. The vesting
condition of the options is for the employee to remain employed through to 31 December 2024.
Securities Based Remuneration – Rights
The Company granted 2,970,118 (FY23: 106,354) share rights over unissued ordinary shares during the Financial
Year to Directors and other Key Management Personnel as part of their remuneration. Refer to section covering
information on KMP LTI plan.
Rights granted in FY24 are detailed in the table below:
Grant
Date
Expiry
Date
Value per
right at
grant
date
(cents)
Granted
Number
Value of
rights
Granted
($)
Forfeited
Number
Vesting
Date
Number
Vested
during
the year
Max.
expense to
be
recognised
in future
years ($)
Peter Hood AO
4 Jul 22
30 Jun 27
82.0
53,177
43,605
-
30 Jun 23
53,177
-
Peter Hood AO
31 Aug 23
30 Jun 28
143.0
37,290
53,325
-
30 Jun 24
37,290
-
Paul Harvey
31 Aug 23
30 Jun 28
143.0
37,290
53,325
-
30 Jun 24
37,290
-
Emma Scotney
23 Nov 23
30 Jun 28
130.5
37,290
48,663
-
30 Jun 24
37,290
-
Glenn Jardine
23 Nov 23
23 Nov 28
115.4
338,239
390,328
-
30 Jun 25
-
243,538
Peter Canterbury
23 Nov 23
23 Nov 28
115.4
193,279
223,044
-
30 Jun 25
-
139,164
Peter Holmes
23 Nov 23
23 Nov 28
115.4
208,076
240,120
-
30 Jun 25
-
149,819
Craig Nelmes
23 Nov 23
23 Nov 28
115.4
88,063
101,625
(55,039)
30 Jun 25
-
23,778
Sarah Standish
16 May 24
16 May 29
106.0
118,797
125,925
-
30 Jun 25
-
112,104
Glenn Jardine
23 Nov 23
23 Nov 28
116.9
676,477
790,802
-
30 Jun 26
-
607,670
Peter Canterbury
23 Nov 23
23 Nov 28
116.9
386,558
451,886
-
30 Jun 26
-
347,238
Peter Holmes
23 Nov 23
23 Nov 28
116.9
416,151
486,481
-
30 Jun 26
-
373,822
Craig Nelmes
23 Nov 23
23 Nov 28
116.9
176,126
205,891
(132,095)
30 Jun 26
-
39,552
Sarah Standish
16 May 24
16 May 29
107.5
237,594
284,400
-
30 Jun 26
-
240,584
De Grey Mining 2024 Annual Report | 78
Other transactions and balances with Key Management Personnel
De Grey have not entered into any transactions with key management personnel.
END OF REMUNERATION REPORT
Signed in accordance with a resolution of the Directors made pursuant to S.298(2) of the Corporations Act 2001
(Cth).
On behalf of the Directors,
Peter Hood
Chair of Remuneration and Nomination Committee
Perth, 30 August 2024
De Grey Mining 2024 Annual Report | 79
Directors’ and Committee Meetings
The number of meetings of the Company’s Board of Directors and its committees held in the 12 months to 30
June 2024 and the number of meetings attended by each Director are as per the following table:
Directors Meetings
Audit & Risk
Committee
Remuneration &
Nomination Committee
Sustainability
Committee
Eligible
Attended
Eligible Attended
Eligible
Attended
Eligible
Attended
Simon Lill
13
13
7
7
8
8
-
-
Glenn Jardine
13
13
-
-
-
-
-
-
Andrew Beckwith
13
12
-
-
-
-
-
-
Paul Harvey
13
13
-
-
8
7
3
3
Peter Hood
13
13
7
7
8
8
3
3
Emma Scotney
13
13
7
7
-
-
3
3
Share Options and Performance rights
At the date of this report there are 1,362,763 unissued ordinary shares in respect of which options are outstanding
and 4,612,788 rights outstanding.
Type
Number
Exercise Price
Expiry Date
Unlisted options
1,362,763
Nil cents
31 December 2025
Share rights
21,816
Nil cents
31 December 2026
Share rights
53,177
Nil cents
30 June 2027
Share rights
111,870
Nil cents
30 June 2028
Performance rights – Class A
1,482,648
Nil cents
23 November 2028
Performance rights – Class B
2,943,277
Nil cents
23 November 2028
During the financial year 1,471,127 options were issued, 3,617,354 options were exercised, and 172,344 options
were forfeited. 4,743,816 rights were issued, 166,803 were exercised, and 187,133 were forfeited. Since the end of
the financial year, no options have been issued or forfeited and 8,416 options have been exercised. Since the end
of the financial year no rights have been issued, exercised or forfeited.
No person entitled to exercise options and/or rights had or has any right by virtue of the option to participate in
any share issue of the Company or a right to vote at a shareholder meeting.
Insurance of Directors and Officers
During the financial year, De Grey paid a premium to insure the Directors, officers and joint secretaries of the
Company. The total amount of insurance contract premiums paid is confidential under the terms of the insurance
policy.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of the Company, and any other payments arising from
liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that
arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their
position or of information to gain advantage for themselves or someone else or to cause detriment to the
company. It is not possible to apportion the premium between amounts relating to the insurance against legal
costs and those relating to other liabilities.
De Grey Mining 2024 Annual Report | 80
Indemnification of Auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as
part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an
unspecified amount). No payment has been made to indemnify Ernst & Young Australia during or since the
financial year.
Non-Audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by
the auditor are outlined in Note 23 to the financial statements. The Directors are satisfied that the provision of
non-audit services during the financial year, by the auditor (or by another person or firm on the auditor’s behalf)
is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 (Cth).
The Directors are of the opinion that the services as disclosed in Note 23 to the financial statements do not
compromise the external auditor’s independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
•
All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
•
None of the services undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical
Standards Board, including reviewing or auditing the auditor’s own work, acting in a management or
decision-making capacity for the Company, acting as advocate for the Company or jointly sharing
economic risks and rewards.
Proceedings on behalf of the Company
As at the date of this report there are no leave applications or proceedings booked on behalf of De Grey under
section 237 of the Corporations Act 2001 (Cth).
Environmental Regulation
The Group is subject to environmental regulation in respect to its exploration activities. The Group aims to ensure
the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and compliant with
all environmental legislation. The Directors of the Group are not aware of any breach of environmental legislation
for the year under review.
De Grey Mining 2024 Annual Report | 81
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
(Cth) is set out on page 82.
This report is made in accordance with a resolution of the Directors
Simon Lill
Emma Scotney
Independent Non-Executive Chair
Chair of the Audit & Risk Committee
Perth, 30 August 2024
De Grey Mining 2024 Annual Report | 82
AUDIT INDEPENDENCE DECLARATION
De Grey Minin De Grey Mining 2024 Annual Report | 83
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Consolidated
2024
2023
$
$
REVENUE & OTHER INCOME
Revenue
5
23,583
26,705
Interest income recognised using the effective interest method
5
16,224,812
4,019,617
Other income
5
17,952
145,440
EXPENDITURE
Employee benefits expense
6/31
(12,510,746)
(9,917,789)
Share based payments expense
(2,705,875)
(2,804,481)
Compliance expenses
(1,113,110)
(594,720)
Corporate advisory and consulting expenses
(2,157,030)
(984,778)
Administration and other expenses
(7,263,213)
(5,068,602)
Depreciation and amortisation
(2,603,673)
(2,321,825)
Finance costs
(16,231)
(123,487)
Loss on financial assets
(5,116,186)
(1,381,301)
LOSS BEFORE INCOME TAX
(17,219,717)
(19,005,221)
INCOME TAX EXPENSE
7
-
-
LOSS FOR THE YEAR
(17,219,717)
(19,005,221)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Other comprehensive income for the year, net of tax
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO
EQUITY HOLDERS OF DE GREY MINING LIMITED
(17,219,717)
(19,005,221)
Basic and diluted loss per share for loss attributable to the ordinary
30
(0.93)
(1.23)
1The earnings per share information for 2023 has been restated to reflect the impact of the equity raises during 2024. Further information is given in Note 30.
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the Notes to
the Consolidated Financial Statements.
De Grey Minin De Grey Mining 2024 Annual Report | 84
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2024
Notes
Consolidated
2024
2023
$
$
CURRENT ASSETS
Cash and cash equivalents
8
686,636,845
112,705,077
Short term deposits
8
180,535,408
-
Trade and other receivables
9
10,595,780
1,763,440
Inventories
10
191,513
179,493
Other assets
11
2,769,944
1,937,598
TOTAL CURRENT ASSETS
880,729,490
116,585,608
NON-CURRENT ASSETS
Financial assets
12
3,527,379
8,643,565
Deferred exploration & evaluation expenditure
13
385,178,658
307,710,136
Property, plant and equipment
14
37,172,677
11,065,479
Right of use assets
15
8,001,723
1,597,330
TOTAL NON-CURRENT ASSETS
433,880,437
329,016,510
TOTAL ASSETS
1,314,609,927
445,602,118
CURRENT LIABILITIES
Trade and other payables
16
26,773,689
24,299,573
Lease liabilities
17
747,112
511,810
Employee benefit obligations
18
1,341,036
1,192,750
TOTAL CURRENT LIABILITIES
28,861,837
26,004,133
NON-CURRENT LIABILITIES
Lease liabilities
17
7,370,304
1,172,951
Employee benefit obligations
18
230,370
149,829
Rehabilitation provision
19
2,193,853
2,218,266
TOTAL NON-CURRENT LIABILITIES
9,794,527
3,541,046
TOTAL LIABILITIES
38,656,364
29,545,179
NET ASSETS
1,275,953,563
416,056,939
EQUITY
Contributed equity
20
1,377,486,390
503,075,924
Reserves
21
6,822,673
4,116,798
Accumulated losses
21
(108,355,500)
(91,135,783)
TOTAL EQUITY
1,275,953,563
416,056,939
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the
Consolidated Financial Statements.
De Grey Minin De Grey Mining 2024 Annual Report | 85
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Contributed
Equity
Share Based
Payments
Reserves
Accumulated
Losses
Total
Consolidated
$
$
$
$
BALANCE AT 30 JUNE 2023
503,075,924
4,116,798
(91,135,783)
416,056,939
Loss for the year
21(b)
-
-
(17,219,717)
(17,219,717)
OTHER COMPREHENSIVE INCOME
-
-
-
-
TOTAL COMPREHENSIVE LOSS
-
-
(17,219,717)
(17,219,717)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
20(a)
900,579,114
-
-
900,579,114
Share issue costs
20(a)
(26,168,648)
-
-
(26,168,648)
Share based payments
21(a)
-
2,705,875
-
2,705,875
BALANCE AT 30 JUNE 2024
1,377,486,390
6,822,673
(108,355,500)
1,275,953,563
BALANCE AT 30 JUNE 2022
356,706,505
3,565,203
(72,130,562)
288,141,146
Loss for the year
21(b)
-
-
(19,005,221)
(19,005,221)
OTHER COMPREHENSIVE INCOME
-
-
-
-
TOTAL COMPREHENSIVE LOSS
-
-
(19,005,221)
(19,005,221)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
20(a)
149,046,000
-
-
149,046,000
Share issue costs
20(a)
(4,929,467)
-
-
(4,929,467)
Share based payments
21(a)
-
2,804,481
-
2,804,481
Transfer of reserve on exercise/expiry of SBP
21(a)
2,252,886
(2,252,886)
-
-
BALANCE AT 30 JUNE 2023
503,075,924
4,116,798
(91,135,783)
416,056,939
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the
Consolidated Financial Statements.
De Grey Minin De Grey Mining 2024 Annual Report | 86
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Consolidated
2024
2023
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from royalties
26,371
25,178
Other income received
20,978
252,493
Payments to suppliers and employees
(23,314,889)
(16,013,315)
Interest payments
(62,497)
(83,520)
Interest received
11,820,154
3,250,846
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
29
(11,509,883)
(12,568,318)
CASH FLOWS FROM INVESTING ACTIVITIES
Transfer to short term deposits
8
(180,535,408)
-
Payments for plant and equipment
(17,148,224)
(3,005,173)
Payments for exploration and evaluation expenditure
(90,777,537)
(68,856,494)
Payment for equity investment
-
(10,000,000)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES
(288,461,169)
(81,861,667)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of ordinary shares
900,579,113
149,046,000
Payments of share issue transaction costs
(26,054,994)
(4,934,132)
Principal elements of lease payments
(621,299)
(471,041)
NET CASH INFLOW FROM FINANCING ACTIVITIES
873,902,820
143,640,827
NET INCREASE IN CASH AND CASH EQUIVALENTS
573,931,768
49,210,842
Cash and cash equivalents at the beginning of the financial year
112,705,077
63,494,235
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR1
8
686,636,845
112,705,077
1The cash and cash equivalents balance does not include short term deposits with a maturity of between three months and 12 months. Total cash and cash equivalents
and short-term deposits is $867,172,253.
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the
Consolidated Financial Statements.
De Grey Minin De Grey Mining 2024 Annual Report | 87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2024
1. General Information
De Grey Mining Limited is a company limited by shares, domiciled, and incorporated in Australia. The registered
office and principal place of business of De Grey Mining Limited is Ground Floor, 2 Kings Park Road, West Perth,
WA, 6005. De Grey’s principal activity is focused on the 100% owned Hemi Gold Project in the Pilbara region of
WA, and includes the large scale, high value, near surface 2019 Hemi gold discovery.
The financial statements are for the consolidated entity consisting of De Grey Mining Limited and its subsidiaries
(“Group”) and have been presented in Australian dollars rounded to the nearest dollar unless stated otherwise.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
The financial statements were authorised for issue by the Directors on 29 August 2024.
A.
Basis of preparation
These general purpose financial statements have been prepared in accordance with the Corporations Act 2001
(Cth), Australian Accounting Standards, and other authoritative pronouncements of the Australian Accounting
Standards Board (AASB). De Grey Mining Limited is a for-profit entity for the purpose of preparing the financial
statements.
(i)
Compliance with IFRS
The financial report also complies with the International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared on a historical cost basis, except for certain financial assets which
have been measured at fair value through profit or loss.
(iii) New or amended Accounting Standards and Interpretations adopted
The Group has adopted all new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for financial years beginning 1 July 2023. The adoption
of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Group during the financial year.
(iv) New and amended Accounting Standards and Interpretations issued but not yet adopted
Several Australian Accounting Standards and Interpretations, that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June
2024. The Group will assess the impacts of the amendments prior to adoption; however, the amendments are not
expected to have a material impact on the Group.
De Grey Minin De Grey Mining 2024 Annual Report | 88
AASB 2014-10 Amendments to AASs – Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture (effective for annual reporting periods beginning after 1 January 2025)
The amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and
Joint Ventures clarify that a full gain or loss is recognised when a transfer to an associate or joint venture
involves a business as defined in AASB 3 Business Combinations. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognised only to the extent of
unrelated investors’ interests in the associate or joint venture.
AASB 2022-5 Amendments to AASs – Lease Liability in a Sale and Leaseback (effective for annual reporting
periods beginning after 1 January 2024)
The standard does not specify how the liability arising in a sale and leaseback is measured. The issue has been
addressed in the amendment, which specifies that the seller-lessee measures the lease liability arising from the
leaseback in such a way that they would not recognise any gain or loss on the sale and leaseback relating to
the right-of-use asset retained.
AASB 2023-1 Amendments to AASs – Disclosures of Supplier Finance Arrangements (effective for annual
reporting periods beginning after 1 January 2024)
AASB 2023-1 amends AASB 107 and AASB 7 by:
- Clarifying the characteristics of supplier finance arrangements
- Introducing new disclosure requirements to assist users in understanding the effects of supplier finance
arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk.
AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or Non-current
AASB 2022-6 Amendments to AASs – Non-current Liabilities with Covenants
AASB 2023-3 Amendments to Australian Accounting Standards – Disclosure of Non-current Liabilities with
Covenants: Tier 2 (effective for annual reporting periods beginning after 1 January 2024)
The amendment clarifies the requirements for classifying liabilities as current or non-current, specifically:
- The amendments specify that the conditions which exist at the end of the reporting period are those which
will be used to determine if a right to defer settlement of a liability exists.
- Management’s intention or expectation does not affect the classification of liabilities.
- In cases where an instrument with a conversion option is classified as a liability, the transfer of equity
instruments would constitute settlement of the liability for the purpose of classifying it as current or non-
current.
- Simplified disclosure requirements for classifying and disclosing borrowings with convents.
De Grey Minin De Grey Mining 2024 Annual Report | 89
AASB 18 Presentation and Disclosure in Financial Statements (effective for annual reporting periods beginning
after 1 January 2027)
AASB 18 has been issued to improve how entities communicate in their financial statements, with a particular
focus on information about financial performance in the statement of profit or loss. The key presentation and
disclosure requirements established by AASB 18 are:
- The presentation of newly defined subtotals in the statement of profit or loss;
- The disclosure of management-defined performance measures; and
- Enhanced requirements for grouping information.
AASB 2023-5 Amendments to AASs – Lack of Exchangeability (effective for annual reporting periods beginning
after 1 January 2025)
The AASB amends AASB 121 The Effects of Changes in Foreign Exchange Rates and AASB 1 First-time Adoption
of Australian Accounting Standards, requiring entities to apply a consistent approach to determining:
- Whether a currency is exchangeable into another currency; and
- The spot exchange rate to use when it is not exchangeable.
(i)
Going concern
The financial statements have been prepared on the going concern basis, which contemplates the continuity of
normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of
business.
B.
Accounting policies
Accounting policies have been applied by all entities in the Group and are consistent with those applied in the
prior year. Except as disclosed below, significant accounting policies are contained within the applicable notes to
the Consolidated Financial Statements.
(i)
Foreign currency translation
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 De Grey Mining Limited’s functional and presentation
currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
De Grey Minin De Grey Mining 2024 Annual Report | 90
(ii) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
C.
Significant accounting judgements estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the
accompanying disclosures, and the disclosure of contingent liabilities at the date of the consolidated financial
statements. Estimates and assumptions are continually evaluated and are based on management’s experience and
other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in future periods.
In particular, the Group has identified a number of areas where significant judgements, estimates and assumptions
are required. Further information on each of these areas and how they impact the various accounting policies are
described and highlighted separately with the associated accounting policy note within the related qualitative and
quantitative note, as described below.
These include:
•
Deferred exploration and evaluation expenditure – Note 13
•
Right of use asset & lease liability – Note 15 & 17
•
Rehabilitation provision – Note 19
•
Share based payments – Note 31
2. Financial Risk Management
The Group’s exposure to a variety of financial risks that may affect the Group’s future financial performance. The
Board has the overall responsibility for the establishment, with the Audit and Risk Committee having oversight of
all risk management policies.
The Committee reports periodically to the Board on its activities and with the assistance of senior management
team are responsible for identifying, assessing, treating, and monitoring risks and risk management policies. The
Committee oversees management’s compliance monitoring processes as well as reviewing the adequacy of the
risk management framework in relation to the risks faced by the Group.
Risk management policies and systems are reviewed regularly by the senior management team to reflect changes
in market conditions and the Group’s activities. The Group aims to develop a disciplined and constructive control
environment in which all employees understand their roles and obligations.
A.
Market risk
Foreign exchange risk
The Group’s operations are in Australia and currently has limited exposures to foreign exchange risk arising from
foreign currency transactions.
De Grey Minin De Grey Mining 2024 Annual Report | 91
Foreign exchange risk arises from recognising assets and liabilities denominated in a currency that is not the
functional currency of the relevant entity. The Company’s holding of a Canadian dollar listed security transferred
to an Australian dollar listed security during 2024.
Price risk
The Group’s listed and equity investments are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Group manages the market price risk by placing limits on individual
and total equity instruments.
At the reporting date, the exposure to equity investments at fair value listed on the ASX was $3,527,379 (2023:
TSX, $8,643,565). Given that the changes in fair values of the equity investments held are correlated with changes
of the ASX market index, the Group has determined that an increase/(decrease) of 10% in the share price could
have an impact of $352,738 (2023: $864,356) increase/(decrease) on the income and equity attributable to the
Group.
Interest rate risk
The Group is exposed to movements in market interest rates on cash and cash equivalents. The Group policy is to
monitor the interest rate yield curve out to six months to ensure a balance is maintained between the liquidity of
cash assets and the interest rate return.
The balance of cash and cash equivalents for the Group of $686,636,845 (2023: $112,705,077) is subject to interest
rate risk. The weighted average interest rate received on cash and cash equivalents by the Group was 3.31% (2023:
4.56%).
Sensitivity analysis
At 30 June 2024, if interest rates had changed by -/+ 100 basis points from the weighted average rate for the year
with all other variables held constant, post-tax loss for the Group would have been $4,899,387 higher/lower (2023:
$880,997 higher/lower) as a result of lower/higher interest income from cash and cash equivalents.
B.
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss
to the Group.
Risk management
The Group has adopted the policy of dealing with creditworthy counterparties as a means of mitigating the risk
of financial loss from a counterparty not meeting its obligations. Customer receivables have 30-day payment term
and outstanding receivables are regularly monitored. Cash is deposited only with institutions approved by the
Board and typically with a current minimum credit rating of A (or equivalent) as determined by a reputable credit
rating agency. The Group has established a policy of having aggregate funds on term deposit or invested in money
markets allocated across financial counterparties. Counterparty credit limits are reviewed by the Group’s Board of
Directors on an annual basis and may be updated throughout the year as required. The limits are set to minimise
the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make
payments The carrying amount of the Group’s financial assets represents the maximum credit risk exposure.
De Grey Minin De Grey Mining 2024 Annual Report | 92
Consolidated
2024
2023
$
$
Trade receivables
Counterparties without external credit rating – other
179,176
13,391
Total trade receivables
179,176
13,391
Cash and cash equivalents & short term deposits
A + external credit rating
686,636,845
112,705,077
Short term deposits
180,535,408
-
Total cash and cash equivalents & short term deposits
867,172,253
112,705,077
Impaired trade receivables
In determining the recoverability of trade and other receivables, the Group performs a risk analysis using a
provision matrix to measure expected credit losses. The provisions rates are based on the type and age of the
outstanding receivable and the creditworthiness of the counterparty. The calculation reflects the probability-
weighted outcome, the time value of money and reasonable and supportable information that is available at the
reporting date about past events, current conditions, and forecasts of future economic conditions. If appropriate,
an impairment loss is recognised in profit or loss. The Group does not have any trade or other receivables that are
past due date or impaired as at 30 June 2024 (2023: nil).
C.
Liquidity risk
The Group manages liquidity risk by monitoring the immediate and forecasted cash requirements and ensures
that adequate cash reserves and/or marketable securities are available to pay debts as and when due.
The Group’s primary activities are currently mineral exploration. Prudent liquidity risk management implies
maintaining sufficient cash and marketable securities as the Group does not have ready access to credit facilities
at this stage of its life cycle. Management regularly monitors its rolling cash forecasts and the state of equity
markets in initiating the timing of capital raisings for its future funding requirements.
Maturities of financial liabilities
An analysis of the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities
and on the basis of the contractual undiscounted cash flows as presented in the table that follows.
Less than
6 months
6 – 12
months
1 – 2
Years
2 – 5
years
Total
$
$
$
$
$
As at 30 June 2024
Trade and other payables
26,773,689
-
-
-
26,773,689
Lease liabilities
630,794
632,987
1,089,117
2,159,548
4,512,446
Total non-derivatives
27,404,483
632,987
1,089,117
2,159,548
31,286,135
As at 30 June 2023
Trade and other payables
24,299,573
-
-
-
24,299,573
Lease liabilities
277,594
277,762
572,016
639,763
1,767,135
Total non-derivatives
24,577,167
277,762
572,016
639,763
26,066,708
De Grey Minin De Grey Mining 2024 Annual Report | 93
D.
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes. All financial assets and financial liabilities of the Group at the balance date are recorded
at amounts approximating their fair value. The fair value of financial instruments traded in active markets is based
on quoted market prices at the reporting date. The quoted market price used for financial assets held by the
Group is the current bid price.
Movements in the fair value of financial assets and liabilities may be recognised through the consolidated
statement of comprehensive income.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
•
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
•
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
•
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
The financial assets and liabilities are presented by class in the table below at their carrying amounts.
Financial assets
Fair value
hierarchy
AASB 9 classification
2024
2023
$
$
Investment in listed shares
Level 1
Fair value through profit and loss
3,527,379
8,643,565
There have been no transfers between fair value levels during the reporting period.
The carrying value of trade receivables and payables approximate their fair values due to their short-term nature.
De Grey Minin De Grey Mining 2024 Annual Report | 94
3. Capital management
For the purpose of the Group’s capital management, capital includes issued capital, and all other equity reserves
attributable to the equity holders of the parent. The Group’s objectives when managing capital are to safeguard
their ability to continue as a going concern, so that they may continue to provide returns for shareholders and
benefits for other stakeholders.
During the reporting period the Company raised approximately $900 million (before costs) through two equity
raises in September 2023 and May 2024. In addition, the Company announced in June 2024 that is had secured
Credit Approved Term Sheets from 11 banks which supported the proposed $1.0 billion senior secured debt facility
and a $130 million Cost Overrun facility. The access to debt facilities is still subject to documentation, government
approvals and a Final Investment Decision (FID). These facilities are expected, if approved, to fund the Company
into production.
The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating and
construction requirements. The working capital position of the Group at 30 June 2024 and 30 June 2023 are as
follows:
Consolidated
2024
2023
$
$
Cash and cash equivalents
686,636,845
112,705,077
Short term deposits
180,535,408
-
Trade and other receivables
10,595,780
1,763,440
Trade and other payables
(26,773,689)
(24,299,573)
Working capital position
850,994,344
90,168,944
4. Segment Information
Management has determined the operating segments based on the reports reviewed by the Board of Directors
that are used to make strategic decisions. For management purposes, the Group has identified one reportable
operating segment being exploration activities undertaken in one geographical segment being Australia. This
segment includes the activities associated with the determination and assessment of the existence of commercial
economic reserves, from the Group’s mineral assets in the sole geographic location.
Recognition and measurement
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the full Board of Directors.
De Grey Minin De Grey Mining 2024 Annual Report | 95
5. Revenue and other income
Consolidated
2024
2023
$
$
Revenue
Revenue
23,583
26,705
Interest income
16,224,812
4,019,617
Other Income
Other income
17,952
145,440
16,266,347
4,191,762
Recognition and measurement
Interest Revenue
Interest revenue is recognised as it accrues using the effective interest method.
6. Expenses
Consolidated
2024
2023
$
$
Loss before income tax includes the following specific expenses:
Contributions to superannuation funds
849,118
644,851
Lease liability – interest charge
17
48,838
57,053
Share based payments – options
31
1,196,545
2,732,130
Share based payments – performance rights
31
1,509,330
72,351
Loss on Change in fair value of investment
12
5,116,186
1,381,301
Recognition and measurement
Refer to recognition and measurement within Note 12 for equity investments, Note 17 for leases, Note 18 for
employee benefits and Note 31 for share based payments.
De Grey Minin De Grey Mining 2024 Annual Report | 96
7. Income tax
Consolidated
2024
2023
$
$
(a) Income tax expense
Current tax expense
-
-
Deferred tax expense
-
-
Total Income tax expense per income statement
-
-
(b) Numerical reconciliation between tax expense and pre-tax net loss
Net loss before tax
(17,219,717)
(19,005,221)
Corporate tax rate applicable 30% (2023: 30%)
30%
30%
Income tax benefit on above at applicable corporate tax rate
(5,165,915)
(5,701,566)
Increase/(decrease) in income tax due to tax effect of:
Share based payments expense
811,763
841,344
Non-deductible expenses
72,934
29,766
Deductible temporary differences not recognised
4,281,218
4,830,456
-
-
(c) Recognised deferred tax assets and liabilities
30%
30%
Deferred tax assets
Employee provisions
459,835
379,849
Other provisions and accruals
685,092
2,277,933
Rehabilitation assets and liabilities
658,156
10,076
Other
412,738
26,229
Blackhole – previously expensed
305,883
-
Tax losses
105,559,577
85,777,135
108,081,281
88,471,222
Set-off against deferred tax liabilities
(108,081,281)
(88,471,222)
Net deferred tax assets
-
-
Deferred tax liabilities
Prepayments
(51,657)
-
Exploration & mine properties
(107,013,745)
(88,226,568)
Rehabilitation assets
(637,849)
-
Right of use (ROU) assets
(378,030)
-
Unearned Income
-
(244,654)
Gross deferred tax liabilities
(108,081,281)
(88,471,222)
Set-off of deferred tax assets
108,081,281
88,471,222
Net deferred tax liabilities
-
-
De Grey Minin De Grey Mining 2024 Annual Report | 97
Consolidated
2024
2023
$
$
(d) Unused tax losses and temporary differences for which no deferred
tax asset has been recognised
30%
30%
Deductible temporary differences
12,209,450
3,381,664
Tax revenue losses
27,088,867
25,449,684
Tax capital losses
77,100
77,100
Total unrecognised deductible temporary differences
39,375,417
28,908,448
The corporate tax rates on both recognised and unrecognised deferred tax assets and deferred tax liabilities have
been calculated with respect to the tax rate that is expected to apply in the year the deferred tax asset is realised,
or the liability is settled.
(e) Tax consolidation
Effective 1 July 2004, for the purposes of income taxation, De Grey Mining Limited and its 100% owned Australian
subsidiaries formed a tax consolidated group. The head entity of the tax consolidated group is De Grey Mining
Limited. Members of the group have entered a tax sharing arrangement that provides for the allocation of income
tax liabilities between the entities should the head entity default on its tax payment obligations. At the balance
date, the possibility of default is remote.
De Grey Mining Limited and the controlled entities in the tax consolidated group continue to account for their
own current and deferred tax amounts. The Group has applied the group allocation approach in determining the
appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group.
The current and deferred tax amounts are measured in a systematic manner that is consistent with the broad
principles in AASB 112 Income Taxes.
In addition to its own current and deferred tax amounts, De Grey Mining Limited also recognises current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the tax consolidated group.
The entities have also entered into a tax funding agreement under which the wholly owned entities fully
compensate De Grey Mining Limited for any current tax payable assumed and are compensated by De Grey Mining
Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits
that are transferred to De Grey Mining Limited under the tax consolidation legislation. The funding amounts are
determined by reference to the amounts recognised in the wholly owned entities’ financial statements.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. The
funding amounts are recognised as current intercompany receivables or payables. Subsidiaries will recognise any
current tax expense equal to the current tax liability and be charged through intercompany by the head entity.
De Grey Minin De Grey Mining 2024 Annual Report | 98
(f) Franking credits
The company has no franking credits available for use in future years (2023: Nil).
Recognition and measurement
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the Company’s subsidiaries and associates operate and
generate taxable income. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate
on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the full liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting nor
taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by
the reporting date and are expected to apply when the related deferred income tax asset is realised, or the deferred
income tax liability is settled.
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.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal
of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
De Grey Minin De Grey Mining 2024 Annual Report | 99
8. Cash and cash equivalents
a)
Cash and cash equivalents
Consolidated
2024
2023
$
$
Cash at bank & on hand (i)
586,636,845
12,266,312
Cash equivalents (ii)
100,000,000
100,438,765
686,636,845
112,705,077
(i)
Cash at bank earns interest at floating rates based on daily bank deposit rates.
(ii)
Consist of short-term deposits held for the purposes of meeting the cash commitments of the Group. Deposits are made for varying periods typically between
one day and three months. The weighted average interest rate achieved for cash and cash equivalents and short-term deposits for the year was 3.31% (2023:
4.56%).
b)
Short term deposits
Consolidated
2024
2023
$
$
Short-term deposits (i)
180,535,408
-
180,535,408
-
(i)
Short-term deposits with an original maturity greater than three months but less than 12 months.
Recognition and measurement
For the purposes of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term highly liquid investments that are readily
convertible to known amounts of cash and which are subject to insignificant risk of changes in value.
9. Trade and other receivables
Consolidated
2024
2023
$
$
Trade and other receivables
252,762
80,071
GST receivable (net)
1,006,680
867,856
Research and development tax incentive
4,116,167
-
Accrued interest
5,220,171
815,513
10,595,780
1,763,440
As the majority of receivables are short term in nature, their carrying amount approximates fair value. Receivables
are generally due for settlement within 30 days and held for the business model of collecting contractual cash
flows.
De Grey Minin De Grey Mining 2024 Annual Report | 100
Recognition and measurement
Trade and other receivables
Trade and other receivables are measured at amortised cost where they have:
•
contractual terms that give rise to cash flows on specified dates, that represent solely payments of
principal and interest on the principal amount outstanding; and
•
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
Trade receivables are initially recognised at the transaction price. Other receivables are initially recognised at fair
value plus directly attributable transaction costs. Trade and other receivables are subsequently measured at
amortised cost using the effective interest rate (EIR) method. The measurement of credit impairment is based on
the expected credit loss (ECL) model described below regarding impairment of financial assets.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which measured at amortised
cost. The ECL is based on the difference between the contractual cash flows due in accordance with the contract
and all the cashflows that the Group expects to receive, discounted at an approximation of the original EIR.
For trade and other receivables due in less than 12 months, the Group recognises a loss allowance based on the
financial asset’s lifetime ECL at each reporting date. The Group establishes a provision matrix for these receivables
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors
and the economic environment as sales from product eventuate or significant receivables come to hand.
The Group considers a financial asset in default when contractual payments are 60 days past due. In certain cases,
the Group may consider a financial asset to be in default when internal or external information indicates that the
Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit
enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows and usually occurs when past due for more than one year and not subject
to enforcement activity.
10. Inventories
Consolidated
2024
2023
$
$
Diesel fuel inventories
191,513
179,493
191,513
179,493
Recognition and measurement
Inventories are valued at the lower of cost and net realisable value. Cost is determined on a weighted average
basis. Any provision for obsolescence or damage is determined by reference to specific stock items identified. The
carrying value of obsolete or damaged items is written down to net realisable value.
De Grey Minin De Grey Mining 2024 Annual Report | 101
11. Other assets
Consolidated
2024
2023
$
$
Prepayment – other (i)
2,769,944
1,937,598
2,769,944
1,937,598
(i)
Prepayments – other includes prepaid insurance premiums for the period 1 July 2024 to 30 April 2025.
12. Financial assets
Consolidated
2024
2023
$
$
Financial assets at fair value through profit or loss
Novo Resources Corp. (ASX: NVO) (2023: TSX: NVO) listed equity securities (i) (ii)
3,527,379
8,643,565
3,527,379
8,643,565
(i)
The financial assets are presented as non-current assets unless management intends to dispose of them within 12 months of the end of the reporting period.
(ii)
Financial assets are valued at the quoted closing share price on the reporting date, being AUD $0.10 (2023: CAD $0.215). During the year, a loss of $5,116,186
(2023: loss of $1,381,301) was recognised in the consolidated statement of comprehensive income (Note 6).
Recognition and measurement
Equity instruments
Equity instruments are classified as financial assets at fair value through profit or loss. The investments are initially
recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they
are measured at fair value and any gains or losses are recognised in the consolidated statement of comprehensive
income as they arise.
13. Deferred exploration & evaluation expenditure
Consolidated
2024
2023
$
$
Beginning of financial year
307,710,136
233,963,542
Exploration expenditure - all areas of interest (i)
76,466,178
74,382,634
Rehabilitation asset movement
(58,515)
(86,273)
Transfer from property, plant and equipment – Note 14
1,886,506
-
Fuel Tax credit offset
(825,647)
(549,767)
385,178,658
307,710,136
(i)
The Group has capitalised all costs associated with The Hemi Gold Project. The recoverability of the carrying amount of the exploration and evaluation assets
is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.
At 30 June 2024, the Group conducted an assessment to determine whether there were any indicators of
impairment in relation to the carrying value of its capitalised deferred exploration and evaluation expenditure. No
indicators of impairment were present and therefore the Group did not impair any previously capitalised
expenditure (2023: $Nil).
De Grey Minin De Grey Mining 2024 Annual Report | 102
Recognition and measurement
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which the expenditure is incurred where:
•
The Group has secured (or has the legal right to) tenure, and/or the legal rights to explore an area of
interest; and
•
Exploration and evaluation activities in the area of interest have not at the end of the reporting period
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing; or
•
The exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale.
Where the conditions outlined are not met in relation to specific area(s) of interest, then those exploration and
evaluation costs are expensed as incurred.
If an area of interest is abandoned or if the Directors consider the expenditure to be of reduced value, accumulated
costs carried forward are written off or impaired in the year in which that assessment is made. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to that area of interest. When a decision is made to proceed with development in a particular area of
interest, the relevant exploration and evaluation asset is tested for impairment and the balance is transferred to
mine properties under development.
Significant judgements, estimates and assumptions
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement
to determine whether future economic benefits are likely from either future exploitation or sale, or whether
activities have not reached a stage that permits a reasonable assessment of the existence of reserves. This is
assessed both at tenement level as well as the area of interest.
In addition to applying judgement to determine whether future economic benefits are likely to arise from the
Group’s exploration and evaluation assets or whether activities have not reached a stage that permits a reasonable
assessment of the existence of reserves, the Group has to apply a number of estimates and assumptions. The
determination of a JORC (The Australasian Code for Reporting of exploration results, mineral resources and ore
reserves) resource is itself an estimation process that involves varying degrees of uncertainty depending on how
the resources are classified (i.e., measured, indicated or inferred). The estimates directly impact when the Group
defers E&E expenditure.
The deferral policy requires management to make certain estimates and assumptions about future events and
circumstances, particularly, whether an economically viable extraction operation can be established. Any such
estimates and assumptions may change as new information becomes available. If, after expenditure is capitalised,
information becomes available suggesting that the recovery of expenditure is unlikely, the relevant capitalised
amount is written off to the statement of profit or loss and other comprehensive income in the period when the
new information becomes available.
De Grey Minin De Grey Mining 2024 Annual Report | 103
14. Property, plant and equipment
Consolidated
Plant &
Equipment
Computer
Equipment
Furniture &
Fittings
Motor
Vehicles
Buildings
Assets in
Progress
Total
$
$
$
$
$
$
$
2024
Gross carrying amount – at
cost
5,116,703
2,475,624
1,063,854
2,143,841
3,770,563
28,605,577
43,176,162
Accumulated depreciation
(1,666,468)
(1,246,163)
(467,489)
(1,130,116)
(1,493,249)
- (6,003,485)
Net book amount
3,450,235
1,229,461
596,365
1,013,725
2,277,314
28,605,577
37,172,677
Property, plant and
Opening net book amount
3,636,547
887,561
509,521
1,163,290
2,528,014
2,340,546
11,065,479
Additions
301,113
816,834
253,866
131,749
292,718
28,151,537
29,947,817
Transfer to exploration &
evaluation – Note 13
-
-
-
-
-
(1,886,506) (1,886,506)
Depreciation charge
(487,425)
(474,934)
(167,022)
(281,314)
(543,418)
- (1,954,113)
Closing net book amount
3,450,235
1,229,461
596,365
1,013,725
2,277,314
28,605,577
37,172,677
Consolidated
Plant &
Equipment
Computer
Equipment
Furniture &
Fittings
Motor
Vehicles
Buildings
Assets in
Progress
Total
$
$
$
$
$
$
$
2023
Gross carrying amount – at
cost
4,815,590
1,658,790
809,988
2,012,092
3,477,845
2,340,546
15,114,851
Accumulated depreciation
(1,179,043)
(771,229)
(300,467)
(848,802)
(949,831)
- (4,049,372)
Net book amount
3,636,547
887,561
509,521
1,163,290
2,528,014
2,340,546
11,065,479
Property, plant and
Opening net book amount
1,507,395
518,206
623,243
1,172,056
409,964
4,584,349
8,815,213
Additions
789,338
727,655
31,167
305,789
9,857
2,201,327
4,065,133
Completion of assets in
progress
1,819,241
-
-
-
2,625,889
(4,445,130)
-
Depreciation charge
(479,427)
(358,300)
(144,889)
(314,555)
(517,696)
- (1,814,867)
Closing net book amount
3,636,547
887,561
509,521
1,163,290
2,528,014
2,340,546
11,065,479
Recognition and measurement
Each class of plant, equipment and motor vehicle is carried at historical cost less, where applicable, any
accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the
asset.
The carrying amounts are reviewed annually by Directors to ensure it is not more than the estimated recoverable
amount from these assets. The recoverable amount is assessed based on the expected net cash flows that will be
received from the asset’s employment and subsequent disposal. The expected net cash flows have been
discounted to their present values in determining recoverable amounts and an asset’s carrying amount is written
down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.
De Grey Minin De Grey Mining 2024 Annual Report | 104
Depreciation of property, plant and equipment is calculated using the straight line or reducing balance method
to allocate their cost, net of their residual values, over their estimated useful lives, as follows:
Plant and Equipment
4% - 50%
Straight line
Furniture and fittings
5% - 50%
Straight line
Computers
20% - 50%
Straight line
Motor Vehicles
17% - 40%
Reducing balance
Buildings
5% - 30%
Straight line
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at
each reporting date.
15. Right of use assets
Consolidated
2024
2023
$
$
Right of use assets
Gross carrying amount (i)
9,572,109
2,518,155
Accumulated depreciation
(1,570,386)
(920,825)
Net book amount
8,001,723
1,597,330
Opening net book amount
1,597,330
1,843,584
Additions
7,053,954
260,705
Depreciation for the year
(649,561)
(506,959)
Closing net book amount
8,001,723
1,597,330
(i)
The right of use assets consists of De Grey Mining Limited’s head office lease and the sub lease of Mt Dove. The head office lease does not include the
options for office lease term extensions as it is not reasonably certain the options will be exercised.
(ii)
The present value of future lease payments is determined by discounting future lease payments using the incremental borrowing rate at the commencement
date of the lease. The incremental borrowing rate for the lease of the office premise is 3% (2023: 3%) and Mt Dove sub lease is 7.60% (2023: nil). See Note
17 for associated lease liabilities.
(iii)
The expense relating to the short-term leases is $3,410,939 (2023: $3,022,646). All short-term lease expenses were capitalised to deferred exploration and
evaluation expenditure (Note 13).
(iv)
The total cash outflow for all leases, including short-term leases, was $4,409,994 (2023: $4,226,463).
Recognition and measurement
An assessment is made, at inception or when contract terms are changed, to determine whether the contract is,
or contains, a lease. A contract is or contains a lease if the contract conveys a right to control the use of an
identified asset for a period of time in exchange for consideration.
Right-of-use assets
The Group recognises all right of use assets, except for leases that are short-term (12 months or less) and low
value leases at the lease commencement date. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-
use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.
De Grey Minin De Grey Mining 2024 Annual Report | 105
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
Short-term leases and leases of low-value assets
For leases that are short-term (12 months or less) and/or low value asset leases at the lease commencement date,
the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease unless another systematic basis is more representative of the time pattern in which economic benefits from
the leased assets are consumed.
16. Trade and other payables
Consolidated
2024
2023
$
$
Trade payables
7,255,865
14,355,405
Other payables and accruals(i)
19,517,824
9,944,168
26,773,689
24,299,573
(i)
Other payables and accruals are non-interest bearing. The amount includes $2,234,799 (2023: $7,000,000) of committed expenditure on Novo Resources
Corporation’s Egina Project (Note 28)
Recognition and measurement
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. The amounts are unsecured and are paid on normal commercial terms.
All trade and other creditors are recognised initially at fair value and, in the case of payables, net of directly
attributable transaction costs.
For purposes of subsequent measurement, trade and other creditors are measured at amortised cost.
De Grey Minin De Grey Mining 2024 Annual Report | 106
17. Lease liabilities
Consolidated
2024
2023
$
$
Current
Lease liabilities
747,112
511,810
Non-current
Lease liabilities
7,370,304
1,172,951
Carrying value - beginning of the year
1,684,761
1,895,096
Interest expense
48,838
57,053
Lease payments
(670,137)
(528,093)
Additions
7,053,954
260,705
Carrying value - end of the year
8,117,416
1,684,761
Recognition and measurement
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include
lease extension options and the exercise price of a purchase option that are reasonably certain to be exercised by
the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the
option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
The present value of future lease payments is determined by discounting future lease payments using the interest
rate implicit in the lease or, if that rate cannot be determined, then the Group’s incremental borrowing rate.
The present value of the lease liability is increased by the interest cost and decreased by the lease payment each
period over the life of the lease. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment
of an option to purchase the underlying asset.
Significant judgements, estimates and assumptions
The group is required to make significant judgements, estimates and assumptions in assessing the lease liability
of the office lease and Mt Dove sub lease. An incremental borrowing rate of 3% and a term of 5 years has been
used for the office lease. An incremental borrowing rate of 7.60% and a term of 15 years has been used for the
Mt Dove sub-lease. However, the office lease contract provides for an extension of a further 3 years and this has
not been included in the calculations of the lease liability as, at the commencement of the lease, it was not
reasonably certain that the option would be exercised.
De Grey Minin De Grey Mining 2024 Annual Report | 107
18. Employee benefit obligations
Consolidated
2024
2023
$
$
Current
Annual Leave (i)
1,215,334
1,088,576
Long Service Leave (i)
125,702
104,174
1,341,036
1,192,750
Non-current
Long Service Leave
230,370
149,829
(i)
The current provision for employee benefits includes all unconditional entitlements where employees have completed the required period of service. The
entire amount is presented as current, since the consolidated entity does not have an unconditional right to defer settlement and has an expectation that
employees will take the full amount of accrued leave or require payment within the next 12 months.
Recognition and measurement
Wages and salaries and other short-term benefits
Liabilities for wages and salaries and other short-term benefits are measured at the amounts expected to be paid
when the liabilities are settled.
Long-term employee benefits
The Group’s liability for long service leave is classified as a long-term employee benefit and is measured using the
projected unit credit valuation method. The expected future payments incorporate anticipated future wage and
salary levels, experience of employee departures and periods of service, and are discounted at rates determined
by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity
dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from
experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the
changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if the
Group does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting
period, irrespective of when the actual settlement is expected to take place.
19. Rehabilitation provision
Consolidated
2024
2023
$
$
Opening balance
2,218,266
2,270,954
Discount unwind
34,102
33,586
Movement in rehabilitation for the Withnell Project
(58,515)
(86,274)
Closing balance
2,193,853
2,218,266
(i)
This provision was brought to account on settlement of the Indee Gold acquisition and covers the mining leases that are subject of an approved Mine closure
plan. The Group assesses its mine rehabilitation provision annually and have prepared an updated mine closure financial assurance cost estimate for the
Withnell Project as at 30 June 2024.
De Grey Minin De Grey Mining 2024 Annual Report | 108
Recognition and measurement
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating losses.
Rehabilitation provision
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability to the extent the estimated future cashflows have not been adjusted for the risks.
Rehabilitation costs include the dismantling and removal of mining plant, equipment and building structures,
waste removal and rehabilitation of the site in accordance with the requirements of the mining permits. Such costs
are determined using estimates of future costs, current legal requirements, and technology.
Rehabilitation costs are recognised in full at present value as a non-current liability. An equivalent amount is
capitalised as part of the cost of the asset when an obligation arises to decommission or restore a site to a certain
condition after abandonment because of bringing the assets to its present location. The capitalised cost is
amortised over the life of the project and the provision is accreted periodically as the discounting of the liability
unwinds. The unwinding of the discount is recorded as a finance cost.
Any changes in the estimates for the costs or other assumptions against the cost of relevant assets are accounted
for on a prospective basis. In determining the costs of site restoration there is uncertainty regarding the nature
and extent of the restoration due to community expectations and future legislation.
Significant judgements, estimates and assumptions
Significant judgement is required in determining the provision for mine rehabilitation and closure as there are
many factors that will affect the ultimate liability payable to rehabilitate the mine sites, including future
disturbances caused by further development, changes in technology, changes in regulations, price increases,
changes in timing of cash flows which are based on life of mine plans and changes in discount rates. When these
factors change or become known in the future, such differences will impact the mine rehabilitation provision in
the period in which the change becomes known. The timing of the rehabilitation activities is expected to occur
between FY33 and FY34.
In determining the liability, a discount rate of 4.35% (2023: 4.03%) has been applied. Sensitivity analysis was
performed to evaluate the difference by increasing or decreasing the discount rate by +/- 100 basis points which
provided a NPV of $2,014,006 and $2,392,908 respectively.
De Grey Minin De Grey Mining 2024 Annual Report | 109
20. Contributed equity
(a) Share capital
2024
2023
Issue
Price
Number of
shares
$
Number of
shares
$
Ordinary shares issued and fully paid
2,396,674,509
1,377,486,390
1,561,166,915
503,075,924
Total contributed equity
2,396,674,509
1,377,486,390
1,561,166,915
503,075,924
(b) Movements in ordinary share capital
Beginning of the financial year
1,561,166,915
503,075,924
1,408,843,525
356,706,505
Issued during the current & prior years:
Placement share issue
$1.05
286,333,341
300,650,008
-
-
Placement and entitlement offer share issue
$1.10
545,390,096
599,929,106
-
-
Placement share issue
$1.00
-
-
130,000,000
130,000,000
Share Purchase Plan share issue
$1.00
-
-
19,046,000
19,046,000
Shares issued on exercise of options
$0.00
3,617,354
-
1,811,544
-
Shares issued on exercise of rights
$0.00
166,803
-
1,465,846
-
Transaction costs
-
(26,168,648)
-
(4,929,467)
Share based payments reserve transfer on exercise
-
-
-
2,252,886
End of the financial year
2,396,674,509
1,377,486,390
1,561,166,915
503,075,924
(c) Movements in options on issue
Number of options
2024
2023
Beginning of the financial year
3,654,720
4,851,096
Net issued / (exercised or forfeited) during the year:
− Exercisable at 0 cents, on or before 29 July 2022
Unlisted
-
(450,454)
− Exercisable at 0 cents, on or before 31 July 2023
Unlisted
-
(1,361,090)
− Exercisable at 0 cents, on or before 31 July 2024
Unlisted
(768,704)
777,120
− Exercisable at 0 cents, on or before 3 Dec 2024
Unlisted
(2,877,600)
(161,952)
− Exercisable at 0 cents, on or before 31 Dec 2025
Unlisted
1,327,733
-
End of the financial year
1,336,149
3,654,720
(d) Movement in performance/share rights on issue
During the year there were 4,743,816 unlisted Performance/Share Rights issued (2023: 106,354) to Directors of the
Group (Note 31).
Number of rights
2024
2023
Beginning of the financial year
222,908
1,798,408
Net issued / (exercised or forfeited) during the year:
− Executive Performance Rights
Unlisted
4,425,925
-
− Director share rights
Unlisted
58,693
106,354
− 2017 Tranche 4
Unlisted
-
(1,450,000)
− 2021 Tranche 1, 2 and 3
Unlisted
(94,738)
(231,854)
End of the financial year
4,612,788
222,908
De Grey Minin De Grey Mining 2024 Annual Report | 110
(e) Ordinary shares
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. On a show of hands every holder of ordinary
shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled
to one vote. Ordinary shares have no par value, and the Company does not have a limited number of authorised
shares. Neither the Company, nor any of its subsidiaries, holds any shares in the Company at 30 June 2024 (2023:
Nil).
Recognition and measurement
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. Refer Note 31 for recognition and measurement
of options and performance/share rights.
21. Reserves and accumulated losses
Consolidated
2024
2023
$
$
(a) Reserves
Share-based payments reserve (i)
6,822,673
4,116,798
6,822,673
4,116,798
Movements:
Share-based payments reserve
Balance at beginning of year
4,116,798
3,565,203
Share based payments (options) expense (Directors & EOP plan)
1,196,545
2,732,130
Share based payments (rights) expense (Directors & PR plan)
1,509,330
72,351
Transfer to Issued Capital on exercise of options
-
(2,252,886)
Balance at end of year
6,822,673
4,116,798
(b) Accumulated losses
Balance at beginning of year
(91,135,783)
(72,130,562)
Net loss for the year
(17,219,717)
(19,005,221)
Balance at end of year
(108,355,500)
(91,135,783)
(i)
Share-based payments reserve - the share-based payments reserve is used to recognise the value of equity benefits provided to either employees or Directors
as remuneration or to suppliers as payment for products and services.
22. Dividends
Consolidated
2024
2023
$
$
-
-
No dividends were paid during the financial year (2023: Nil).
No recommendation for payment of dividends has been made.
De Grey Minin De Grey Mining 2024 Annual Report | 111
23. Remuneration of auditors
Consolidated
2024
2023
$
$
During the year the following fees were paid or payable for services provided by the auditor of
the parent entity, its related practices and non-related audit firms:
(a) Audit services
Ernst & Young - audit and review of financial reports
83,304
89,115
83,304
89,115
(b) Non-Audit services
Ernst & Young
9,360
-
9,360
-
24. Contingent liabilities
Mount Dove Iron Rights
On 22 September 2015, the company entered into a Deed of Termination with the Atlas Iron Group, where the
Atlas Iron Group relinquished its iron ore rights on any of the Turner River Project tenements. If De Grey mines
iron ore on any of its the Turner River Project tenements it will pay the Atlas Iron Group a one-off payment of
$50,000.
25. Commitments
(a) Exploration commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration
assets it has an interest in.
Consolidated
2024
2023
$
$
Outstanding Hemi Gold Project exploration commitments are as follows:
Hemi Gold Project tenements (100% owned)
2,397,000
2,704,400
Tenements under option agreements (i)
2,221,600
126,000
Annual commitment for the Hemi Gold Project assets
4,618,600
2,830,400
(i)
The tenements that remain under option and/or earn-in agreements are with respect to the Farno McMahon, Egina and Ashburton projects as detailed in
Note 28.
(b) Capital commitments
At 30 June 2024, the Group has committed $54,594,506 (2023: Nil) towards the purchase of long leads items for
the Hemi Gold Project.
26. Related party transactions
(a) Parent entity
The ultimate parent entity within the Group is De Grey Mining Limited.
De Grey Minin De Grey Mining 2024 Annual Report | 112
(b) Subsidiaries
Interests in subsidiaries are set out in Note 27.
(c) Transactions with related parties
De Grey did not enter into any contracts which resulted in transactions with key management personnel (2023:
nil).
Details of compensation paid to key management personnel are disclosed in the Remuneration Report.
Compensation of key management personnel of the Group
2024
2023
$
$
Short term employee benefits
3,227,700
3,334,353
Post-Employment benefits
190,506
203,229
Termination benefits
194,182
-
Long term benefits
11,491
47,593
Share based payment transaction
1,000,254
1,584,879
4,624,133
5,170,054
27. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries in
accordance with the accounting policy described in Note 1(b):
Name
Country of Incorporation
Class of Shares
Equity Holding¹
2024
2023
%
%
Beyondie Gold Pty Ltd
Australia
Ordinary
100
100
Domain Mining Pty Ltd
Australia
Ordinary
100
100
Winterwhite Resources Pty Ltd
Australia
Ordinary
100
100
Last Crusade Pty Ltd
Australia
Ordinary
100
100
Indee Gold Pty Ltd
Australia
Ordinary
100
100
¹ The proportion of ownership interest is equal to the proportion of voting power held.
Recognition and measurement
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of De Grey Mining
Limited (“company” or “parent entity”) as at 30 June 2024 and the results of all subsidiaries for the year then
ended. De Grey Mining Limited and its subsidiaries together are referred to in this financial report as the Group
or the consolidated entity.
Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and could affect those returns through its power over the
entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-
consolidated 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 the impairment of
the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
De Grey Minin De Grey Mining 2024 Annual Report | 113
Investments in subsidiaries are accounted for at cost in the separate financial statements of De Grey Mining
Limited.
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any
difference between the amount of the adjustment to non-controlling interests and any consideration paid or
received is recognised in a separate reserve within equity attributable to owners of De Grey Mining Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, jointly
controlled entity or financial asset. In addition, any amounts previously recognised in other comprehensive income
in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or
loss.
28. Interests in joint operations
Farno McMahon Project Option
Principal place of business: Perth, WA
On 28 July 2017, De Grey secured an option to enter into a joint arrangement for tenement E47/2502 and referred
to as the Farno McMahon Project. An option fee of $40,000 was paid to the vendor granting De Grey an exclusive
right and period to assess the project and on 2 October 2017, the Company elected to exercise the option. The
vendor retains all alluvial rights.
During the 2021 financial year De Grey Mining successfully earned a 75% equity interest in the Farno McMahon
Project and has continued exploration during the 2023 financial year. De Grey Mining Limited will manage the
joint arrangement.
Novo Resources Corporation
On 22 June 2023, De Grey entered into a binding Heads of Agreement (“HOA”) with Novo Resources Corp. (ASX:
NVO, “Novo”) covering the Egina Project, a large land package adjacent to De Grey’s existing large Hemi Gold
Project. The agreement allows De Grey to earn 50% of the Egina Project, by spending A$25M over four years, with
a minimum of A$7M within 18 months. The majority of the 1,034km2 tenement package is located immediately
south of Withnell and southwest of the Hemi discovery (“Egina Project”).
Kalamazoo Resources Limited
On 5 February 2024, De Grey signed an exclusive option agreement with Kalamazoo Resources to acquire their
Ashburton Gold Project. Ashburton consists of granted mining leases and exploration licences, including an
existing 1.44 million ounce gold Resource. The exploration package covering 217km2, is located 35km from
Paraburdoo and 290km south of the Company’s Hemi Gold Project. The Option period is 12 to 18 months (at De
Grey’s election) with De Grey to commit $1M minimum expenditure for exploration, test work and studies. Exercise
of the Option, at De Grey’s election following or during the Option period, would result in payment of $15M and
an additional $15M within 18 months of exercise. Payments can be made in cash or De Grey shares, at De Grey’s
election.
De Grey Minin De Grey Mining 2024 Annual Report | 114
Recognition and measurement
A joint operation is an arrangement in which the Group has joint control, primarily via contractual arrangements
with other parties. In a joint operation, the Group has rights to the assets and obligations for the liabilities relating
to the arrangement. This includes situations where the parties benefit from the joint activity through a share of
the output, rather than by receiving a share of the results of trading. In relation to the Group’s interest in a joint
operation, the Group recognises: its assets and liabilities, including its share of any assets and liabilities held or
incurred jointly; revenue from the sale of its share of the output and its share of any revenue generated from the
sale of the output by the joint operation; and its expenses including its share of expenses incurred jointly. All such
amounts are measured in accordance with the terms of the arrangement, which is usually in proportion to the
Group’s interest in the joint operation.
29. Notes to the statement of cash flows
Consolidated
2024
2023
$
$
a) Reconciliation of net loss after income tax to net cash outflow
from operating activities
Net loss for the year
(17,219,717)
(19,005,221)
Non-Cash Items
Depreciation of non-current assets
2,603,673
2,321,825
Share based payments (options and performance rights)
2,705,875
2,804,481
Loss on foreign currency fluctuation
(80,368)
6,381
Loss on investment at fair value through profit and loss
5,116,186
1,381,301
Change in operating assets and liabilities
(Increase) in prepayments
(348,493)
(663,302)
(Increase)/decrease in trade and other receivables
(4,775,166)
108,940
Increase in trade and other payables
225,555
182,581
Increase in provisions
262,572
294,696
Net cash outflow from operating activities
(11,509,883)
(12,568,318)
30. Loss per share
Consolidated
2024
2023
$
$
(a) Basic and Diluted Loss per Share
Basic and diluted loss per share for loss attributable to the ordinary equity holders of
the company (cents per share)
(0.93)
(1.23)
(b) Reconciliation of earnings used in calculating loss per share
Loss attributable to the owners of the company used in calculating basic and diluted
loss per share
(17,219,717)
(19,005,221)
(c) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic and diluted loss per share1
1,843,383,410
1,539,823,105
1 The earnings per share information has been restated for the comparative period presented, by adjusting the weighted average number of shares to include the
impact of the equity issued during 2024 (Note 20). The discount element inherent in the equity raises has been accounted for as a bonus issue of 23,236,344 shares
in 2023.
De Grey Minin De Grey Mining 2024 Annual Report | 115
(d) Information on the classification of options
As the Group has made a loss for the year ended 30 June 2024, all options and rights on issue are considered
antidilutive and have not been included in the calculation of diluted earnings per share. These options and rights
could potentially dilute basic earnings per share in the future. There are 1,336,149 unlisted options, of which 8,416
are fully vested at 30 June 2024 and 4,612,788 unlisted rights, of which 186,863 are full vested at 30 June 2024.
Since the end of the financial year, no options and no rights have been issued and 8,416 options have been
exercised.
Recognition and measurement
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the company, 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.
31. Share-based payments
From time-to-time options and rights are granted to;
(i) Eligible employees under the shareholder approved Performance Rights and Option Plan (PR&OP) of De Grey
Mining Limited (previously under the separate Performance Rights Plan (PRP) and Employee Option Plan
(EOP)) to align their interests with that of the shareholders of the company.
(ii) Directors under rules comparable with the PR&OP, but subject to shareholder approval pursuant to the
provisions of the ASX Listing Rules and the Corporations Act 2001 (Cth).
(a) Options
Performance rights and Option Plan (‘PR&OP’) of De Grey Mining Limited
Shareholders last approved the PR&OP at the Annual General Meeting held on 29 November 2021. The PR&OP
is designed to attract and retain eligible employees, provide an incentive to deliver growth and value for the
benefit of all shareholders and facilitate capital management by enabling the Company to preserve cash reserves
for expenditure on principal activities. Participation in the PR&OP is at the discretion of the Board and no eligible
employee has a contractual right to receive an option under the Plan.
The exercise price and expiry date for all options granted will be determined by the board prior to granting of the
options, and in the case of Director options subject to shareholder approval. The options granted may also be
subject to conditions on exercise and usually have a contractual life of two to three years. Options granted carry
no dividend or voting rights. When exercisable, each option is convertible into one ordinary share in the capital of
the company with full dividend and voting rights.
De Grey Minin De Grey Mining 2024 Annual Report | 116
ZEPO’s have been issued during the year to employees and executives. The ZEPO’s will vest upon satisfaction of
all of the following non-market vesting conditions, or where, despite vesting conditions not being satisfied, the
Board (in its absolute discretion) resolves that unvested Options have vested:
Employee and Executives ZEPO’s
•
Upon the satisfaction of the following vesting condition:
a) Upon satisfaction of the service period of employment to 31 December 2024, or where, despite
vesting conditions not being satisfied, the Board (in its absolute discretion) resolves that unvested
Options have vested.
There were no Director options granted (2023: 90,574) and 1,471,127 employee options granted (2023: 1,142,941)
in the financial year ended 30 June 2024 as detailed in the following table:
Grant date
Vesting date
Exercise
price
Cents
Balance at
start of the
year
Granted
during the
year
Forfeited
during the
year
Exercised
during the year
Balance at
end of the
year
Vested and
exercisable at end
of the year1
2023-2024
4 Dec 2020
30 Jun 2023
0 cents
1,781,838
-
-
(1,781,838)
-
-
1 Feb 2021
30 Jun 2023
0 cents
470,783
-
-
(470,783)
-
-
29 Nov 2021
30 Jun 2023
0 cents
41,255
-
-
(41,255)
-
-
21 Dec 2021
30 Jun 2023
0 cents
320,139
-
-
(320,139)
-
-
24 Aug 2022
30 Jun 2023
0 cents
777,120
-
(28,950)
(739,754)
8,416
8,416
24 Nov 2022
30 Jun 2023
0 cents
77,894
-
-
(77,894)
-
-
19 Dec 2022
30 Jun 2023
0 cents
185,691
-
-
(185,691)
-
-
30 Aug 2023
31 Dec 2024
0 cents
-
1,471,127
(143,394)
-
1,327,733
-
3,654,720
1,471,127
(172,344)
(3,617,354)
1,336,149
8,416
2022-2023
10 Jul 2020
10 Jul 2020
0 cents
450,454
-
-
(450,454)
-
-
4 Dec 2020
30 Jun 2023
0 cents
2,071,904
-
(290,066)
-
1,781,838
1,781,838
1 Feb 2021
30 Jun 2023
0 cents
547,422
-
(76,639)
-
470,783
470,783
31 May 2021
30 Jun 2022
0 cents
1,361,090
-
-
(1,361,090)
-
-
29 Nov 2021
30 Jun 2023
0 cents
47,971
-
(6,716)
-
41,255
41,255
21 Dec 2021
30 Jun 2023
0 cents
372,255
-
(52,116)
-
320,139
320,139
24 Aug 2022
30 Jun 2023
0 cents
-
927,022
(149,902)
-
777,120
777,120
24 Nov 2022
30 Jun 2023
0 cents
-
90,574
(12,680)
-
77,894
77,894
19 Dec 2022
30 Jun 2023
0 cents
-
215,919
(30,228)
-
185,691
185,691
4,851,096
1,233,515
(618,347)
(1,811,544)
3,654,720
3,654,720
1There are no options that have vested that are not exercisable.
De Grey Minin De Grey Mining 2024 Annual Report | 117
Expenses arising from share-based payment transactions - options
The weighted average fair value of the options granted during the year was $1.43 (2023: $1.02). The price was
calculated by using the Black-Scholes European Option Pricing Model applying the following inputs:
2023-2024
30 Aug 2023
Number of options issued
1,471,127
Average exercise price (cents)
0
Average life of the option (years)
2.34
Share price on grant date (cents)
143.0
Expected share price volatility
95%-110%
Average risk-free interest rate
4.35%
Fair value per option (cents)
143.0
Total fair value ($) – Life of options issued during 2024
2,103,707
2022-2023
24 Aug 2022
24 Nov 2022
19 Dec 2022
Number of options issued
927,022
90,574
215,919
Average exercise price (cents)
0
0
0
Average life of the option (years)
1.94
2.03
1.96
Share price on grant date (cents)
94.5
127.5
123.5
Expected share price volatility
95%-110%
95%-110%
95%-110%
Average risk-free interest rate
4.10%
4.10%
4.10%
Fair value per option (cents)
94.5
127.5
123.5
Total fair value ($) – Life of options issued during 2023
876,036
115,482
266,660
Historical volatility has been used as the basis for determining expected share price volatility as it assumed that
this is indicative of future trends, which may not eventuate.
No assumptions have been made relating to dividends and there are no other inputs to the model. There are no
options that have vested that are not exercisable.
Total expenses arising from equity settled share-based payment transactions recognised during the period were
as follows:
2024
2023
$
$
Options issued to Directors and EOP to eligible employees
1,196,545
2,732,130
(b) Performance rights and Non-Executive Director Share rights
Performance rights and Option Plan (‘PR&OP’) of De Grey Mining Limited
Shareholders last approved the PR&OP at the Annual General Meeting held on 29 November 2021. This
shareholder plan is designed to attract and retain eligible employees, provide an incentive to deliver growth and
value for the benefit of all shareholders and facilitate capital management by enabling the Company to preserve
cash reserves for expenditure on principal activities. Participation in the PR&OP is at the discretion of the Board
and no eligible employee has a contractual right to receive performance rights under the PR&OP.
Non-Executive Director Share Plan (‘NED-Share Plan’) of De Grey Mining Limited
Shareholders approved the NED-Share Plan at the Annual General Meeting held on 29 November 2021.
De Grey Minin De Grey Mining 2024 Annual Report | 118
The objective of the NED-Share Plan is to attract, motivate and retain its Non-Executive Directors and the Company
considers that the adoption of the Share Plan and the future issue of Shares Rights under the Share Plan will
provide Non-Executive Directors with the opportunity to participate in the future growth of the Company.
The performance/share rights granted will be determined by the board prior to granting of the rights, and in the
case of grants to Directors, these are subject to shareholder approval. The rights granted may be subject to
performance milestones before the holder has the right to exercise (Refer Note 20 (d)) and can have a contractual
life of up to 5 years.
Rights granted carry no dividend or voting rights. When exercisable, each right is convertible into one ordinary
share in the capital of the company with full dividend and voting rights.
The following vesting conditions apply to the performance/share rights issued during 2024:
Share rights issued in August and November 2023 (Approved 29 November 2021, 24 November 2022 and 23
November 2023):
•
The Director remaining employed by the Company at 30 June 2024.
Executive Performance Rights issued during November 2023 and May 2024: vesting conditions for the two and
three year executive performance rights issued during 2024 are:
•
2-Year LTI. Assessed at 30 June 2025:
o
50% weighting: The Company achieving 50% completion of the construction of the Hemi Gold Project
Processing Facility and receiving required secondary operational approvals from DMIRS and other
regulatory authorities.
o
25% weighting: The Company achieving a 4Moz Au increase from the start of the measurement
period (being 1 July 2023) in the Hemi Gold Project JORC Inferred Mineral Resource classification.
o
25% weighting: The Company’s Share price demonstrating outperformance of the Van Eck GDXJ
index across the measurement period (from 1 July 2023 to 1 July 2025), with the outperformance
representing a percentage growth of Share price greater than that of the GDXJ index.
•
3-Year LTI. Assessed at 30 June 2026:
o 50% weighting: Production commencing at the Hemi Gold Project and the Company completing its
first gold pour.
o 25% weighting: The Company achieving a 6Moz Au increase from the start of the measurement
period (being 1 July 2023) in the Hemi Gold Project JORC Inferred Mineral Resource classification.
o 25% weighting: The Company’s Share price demonstrating outperformance of the Van Eck GDXJ
index across the measurement period (from 1 July 2023 to 1 July 2026), with the outperformance
representing a percentage growth of Share price greater than that of the GDXJ index.
De Grey Minin De Grey Mining 2024 Annual Report | 119
Grant date
Expiry date
Balance at
start
of the year
Number
Granted
during
the year
Number2
Exercised
during the
year
Forfeited
during the
year
Adjustments
made during
the year
Balance at end
of the year
Number
Vested and
exercisable
at end of the
year
2023-2024
10 July 2020
23 Sep 2023
94,738
-
(94,738)
-
-
-
-
29 Nov 2021
31 Dec 2026
21,816
-
-
-
-
21,816
21,816
4 Jul 2022
30 Jun 2027
53,177
-
-
-
-
53,177
53,177
24 Nov 2022
30 Jun 2027
53,177
-
(53,177)
-
-
-
-
31 Aug 2023
30 Jun 2028
-
74,580
-
-
-
74,580
74,580
23 Nov 2023
30 Jun 2028
-
56,178
(18,888)
-
-
37,290
37,290
23 Nov 2023
23 Nov 2028
-
4,256,668
-
(187,134)
-
4,069,534
-
16 May 2024
16 May 2029
-
356,391
-
-
-
356,391
-
222,908
4,743,817
(166,803)
(187,134)
-
4,612,788
186,863
2022-2023
20 Dec 2017
30 Nov 2022
1,450,000
-
(1,325,000)
(125,000)
-
-
-
10 July 2020
23 Sep 2023
326,592
-
(140,846)
(91,008)
-
94,738
-
29 Nov 2021
31 Dec 2026
21,816
-
-
-
-
21,816
21,816
4 Jul 2022
30 Jun 2027
-
53,177
-
-
-
53,177
53,177
24 Nov 2022
30 Jun 2027
-
53,177
-
-
-
53,177
53,177
1,798,408
106,354
(1,465,846)
(216,008)
-
222,908
128,170
Expenses arising from share-based payment transactions – performance/share rights
During the year ended 30 June 2024, 130,758 unlisted share rights were issued to Directors of the Group and
4,613,059 performance rights were issued to executives. As at the end of the financial year 4,612,788
performance/share rights remain outstanding.
Director rights
Rights issued to executives
31 Aug 23
23 Nov 23
23 Nov 23
23 Nov 23
16 May 24
16 May 24
Number Issued (No.)
74,580
56,178
1,418,890
2,837,778
118,797
237,594
Grant Date
31 Aug 23
23 Nov 23
23 Nov 23
23 Nov 23
16 May 24
16 May 24
Exercise Price ($)
-
-
-
-
-
-
Expiry Date
30 Jun 28
30 Jun 28
23 Nov 28
23 Nov 28
16 May 29
16 May 29
Vesting date
30 Jun 24
30 Jun 24
30 Jun 25
30 Jun 26
30 June 25
30 June 26
Underlying Share Price on Grant ($)
$1.430
$1.305
$1.305
$1.305
$1.180
$1.180
Fair value of performance rights
$1.430
$1.305
$1.154
$1.169
$1.060
$1.075
Total Fair Value ($) – Life of Right
$106,650
$49,387
$591,888
$732,473
$13,821
$14,830
2024
2023
$
$
Total Fair Value for all rights expensed
1,509,330
72,351
Recognition and measurement
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled
transactions’), refer to Note 31.
De Grey Minin De Grey Mining 2024 Annual Report | 120
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date
at which they are granted. The fair value is determined by a combination of internal and external sources using a
Black-Scholes option pricing model and independent third-party valuations.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of options that, in the opinion of
the Directors of the Group, will ultimately vest. This opinion is formed based on the best available information at
balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect
of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition. Where awards are forfeited because non-market-based vesting conditions are not
satisfied, the expense previously recognised is reversed.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for
the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new
award are treated as if they were a modification of the original award.
Options over ordinary shares have also been issued as consideration for the acquisition of interests in tenements
and other services. These options have been treated in the same manner as employee options described above,
with the expense being included as part of exploration expenditure.
32. Events occurring after the reporting date
There have been no other matters or circumstances occurring subsequent to the end of the financial year that has
significantly affected, or may significantly affect the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
De Grey Minin De Grey Mining 2024 Annual Report | 121
33. Parent entity information
Parent Entity
2024
2023
$
$
The following information relates to the parent entity, De Grey Mining Limited, at 30 June 2024. The information presented here has
been prepared using accounting policies consistent with those presented in Note 1 to Note 31.
Current assets
880,729,489
116,585,608
Non-current assets
427,179,498
329,057,188
Total assets
1,307,908,987
445,642,796
Current liabilities
29,092,203
25,899,959
Non-current liabilities
2,822,535
3,645,215
Total liabilities
31,914,738
29,545,174
Contributed equity
1,377,486,390
503,075,924
Reserves
6,822,673
4,116,798
Accumulated losses
(108,314,814)
(91,095,100)
Total equity
1,275,994,249
416,097,622
Loss for the year
(17,219,717)
(19,005,221)
Other comprehensive loss
-
-
Total comprehensive loss for the year
(17,219,717)
(19,005,221)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments
The parent entity had no capital commitments as at 30 June 2024 and 30 June 2023.
Accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity.
De Grey Minin De Grey Mining 2024 Annual Report | 122
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
As at 30 June 2024
Entity Name
Entity Type
Body Corporate
Country of
Incorporation
Body Corporate % of
Share Capital Held
Country of Tax
Residence
Beyondie Gold Pty Ltd
Body corporate
Australia
100
Australia
Domain Mining Pty Ltd
Body corporate
Australia
100
Australia
Winterwhite Resources Pty Ltd
Body corporate
Australia
100
Australia
Last Crusade Pty Ltd
Body corporate
Australia
100
Australia
Indee Gold Pty Ltd
Body corporate
Australia
100
Australia
De Grey Minin De Grey Mining 2024 Annual Report | 123
DIRECTOR’S DECLARATION
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 83 to 122 are in accordance with the Corporations Act
2001 (Cth), 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 consolidated entity’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date;
(b)
the audited remuneration report set out on pages 53 to 78 of the Directors’ Report complies with section
300A of the Corporations Act 2001 (Cth);
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
(d)
the consolidated entity disclosure statement required by section 295(3A) of the Corporations Act 2001 (Cth)
is true and correct; and
Note 1 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 Chief Executive Officer and Chief Financial Officer required
by section 295A of the Corporations Act 2001 (Cth).
This declaration is made in accordance with a resolution of the Directors.
Simon Lill
Independent Non-Executive Chair
Perth, 30 August 2024
De Grey Minin De Grey Mining 2024 Annual Report | 124
AUDIT REPORT
De Grey Minin De Grey Mining 2024 Annual Report | 125
De Grey Minin De Grey Mining 2024 Annual Report | 126
De Grey Minin De Grey Mining 2024 Annual Report | 127
De Grey Minin De Grey Mining 2024 Annual Report | 128
De Grey Minin De Grey Mining 2024 Annual Report | 129
ASX ADDITIONAL INFORMATION
Additional information required by Australian Stock Exchange Ltd, and not shown elsewhere in this report, is as
follows. The information is current as at 19 August 2024.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
Ordinary shares
Number of
holders
Number of shares
1
-
1,000
3,331
2,078,709
1,001
-
5,000
4,771
13,591,250
5,001
-
10,000
2,342
18,332,944
10,001
-
100,000
4,062
128,892,296
100,001
and over
675
2,233,787,726
15,181
2,396,682,925
The number of shareholders holding less than a marketable parcel of shares are:
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are as follows:
Listed ordinary shares
Number of
shares
Percentage of
ordinary shares
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
707,437, 659
29.52%
2
RENAISSANCE RESOURCES PTY LTD
413,934,740
17.27%
3
CITICORP NOMINEES PTY LIMITED
318,925,866
13.31%
4
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
279,960,578
11.68%
5
BNP PARIBAS NOMINEES PTY LTD
81,914,754
3.42%
6
NORTHWEST NONFERROUS AUSTRALIA MINING PTY LTD
34,715,579
1.45%
7
BNP PARIBAS NOMS PTY LTD
25,999,018
1.08%
8
MR YI WENG & MS NING LI
21,296,597
0.89%
9
NATIONAL NOMINEES LIMITED
15,090,129
0.63%
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
14,676,354
0.61%
11
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13,153,176
0.55%
12
BNP PARIBAS NOMINEES PTY LTD
9,143,961
0.38%
13
BNP PARIBAS NOMINEES PTY LTD
8,437,260
0.35%
14
MR YI WENG & MS NING LI YI WENG & NING LI S/F A/C’S
8,395,548
0.35%
15
MR ANDREW RHYS JACKSON
8,337,177
0.35%
16
FIRST SAMUEL LTD ACN 086243567
8,111,527
0.34%
17
UBS NOMINEES PTY LTD
6,101,425
0.25%
18
CITICORP NOMINEES PTY LIMITED
5,698,504
0.24%
19
PENAND PTY LTD
4,076,061
0.17%
20
JAYLEAF HOLDINGS PTY LTD
3,765,178
0.16%
1,989,171,091
83.00%
De Grey Minin De Grey Mining 2024 Annual Report | 130
(c) Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 (Cth) are:
Number of
Shares
%
Gold Road Resources Limited
413,934,740
17.85%
BlackRock Group
223,378,666
9.63%
(d) Unquoted (unlisted) Securities
Holders of 20% or more of the class
Class
Number of
Securities
Number of
Holders
Holder Name
Number of
Securities
Unlisted $Nil options, expiry 31 December 2025
1,327,733
69
Nil
N/A
Performance rights
4,425,925
10
Glenn Jardine
1,014,716
Share rights
186,863
3
Peter Hood
112,283
Emma Scotney
37,290
Paul Harvey
37,290
(e) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
The Quoted and unquoted (unlisted) options have no voting rights.
(f) Corporate Governance
De Grey Mining Ltd, its subsidiaries (“Group”) and its Board of Directors are committed to achieving and
demonstrating high standards of corporate governance and business conduct. The Board is responsible to its
shareholders for the performance of the Company and seeks to communicate extensively with shareholders. The
Board believes that sound corporate governance practices will assist in the creation of shareholder wealth and
provide accountability. In accordance with ASX Listing Rule 4.10.3, the Company has elected to disclose its
corporate governance policies and its compliance with them on its website, rather than in this Annual Report.
Accordingly, information about the Company's corporate governance practices is set out on the Company's
website at www.https://degreymining.com.au/corporate-governance.
(g) Application of Funds
During the financial year, in accordance with ASX Listing Rule 4.10.19, De Grey Mining Limited confirms that it has
used its cash and assets (in a form readily convertible to cash) in a manner which is consistent with the Company’s
business objectives.
De Grey Minin De Grey Mining 2024 Annual Report | 131
ANNUAL MINERAL RESOURCES AND ORE RESERVE STATEMENT
Ore Reserves – Hemi Gold Project by Deposit, September 2023
Deposit
Proven
Probable
Total
Mt
Au g/t
koz
Mt
Au g/t
koz
Mt
Au g/t
koz
Aquila/Crow
-
-
-
24.7
1.6
1,259
24.7
1.6
1,259
Brolga
-
-
-
36.5
1.6
1,829
36.5
1.6
1,829
Diucon
-
-
-
26.6
1.6
1,383
26.6
1.6
1,383
Eagle
-
-
-
13.0
1.4
598
13.0
1.4
598
Falcon
-
-
-
20.0
1.4
932
20.0
1.4
932
Total Hemi
-
-
-
120.8
1.5
6,002
120.8
1.5
6,002
Hemi Gold Project - Global Mineral Resource Estimate, November 2023
Mining
Centre
Measured
Indicated
Inferred
Total
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Hemi Mining
165.8
1.3
6,879
88.8
1.3
3,577
254.5
1.3
10,456
Withnell
1.6
1.8
92
15.6
1.6
792
11.9
2.1
797
29.1
1.8
1,681
Wingina
i i
3.1
1.7
173
2.5
1.5
122
6.3
1.2
243
11.9
1.4
538
Total
4.7
1.7
265
183.9
1.3
7,793
106..9
1.3
4,617
295.5
1.3
12,675
The regional resource estimates at the Withnell and Wingina Mining Centres have not changed since the April 2020 statement, except Toweranna.
De Grey Minin De Grey Mining 2024 Annual Report | 132
Hemi Gold Project – Global Mineral Resource Estimate by Type, November 2023
Mining
Centre
Type
Measured
Indicated
Inferred
Total
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Hemi
Mining
Centre
Oxide
7.8
1.5
386
0.5
0.9
15
8.3
1.4
400
Sulphide
158.0
1.3
6,493
88.3
1.3
3,563
246.2
1.2
10,056
Total
165.8
1.3
6,878
88.8
1.3
3,577
254.5
1.3
10,456
Withnell
Mining
Centre
Oxide
1.0
1.8
58
2.9
1.3
122
1.7
1.3
75
5.6
1.4
255
Sulphide
0.7
1.7
35
12.6
1.6
669
10.2
2.2
722
23.5
1.9
1,426
Total
1.6
1.8
92
15.6
1.6
792
11.9
2.1
797
29.1
1.8
1,681
Wingina
Mining
Centre
Oxide
2.7
1.8
152
1.8
1.5
88
2.2
1.1
75
6.7
1.5
315
Sulphide
0.4
1.6
21
0.7
1.6
35
4.0
1.3
168
5.1
1.4
224
Total
3.1
1.7
173
2.5
1.5
122
6.3
1.2
243
11.9
1.4
538
Total
Oxide
3.7
1.8
210
12.6
1.5
596
4.5
1.1
164
20.7
1.5
970
Sulphide
1.1
1.6
55
171.3
1.3
7,197
102.5
1.4
4,453
274.8
1.3
11,705
Total
4.7
1.7
265
183.9
1.3
7,793
106.9
1.3
4,617
295.5
1.3
12,675
Hemi Gold Project – Mineral Resource Estimate by Mining Centre and Deposit, November
2023
Hemi Mining Centre
Deposit
Type
Measured
Indicated
Inferred
Total
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Aquila
Oxide
1.1
1.5
51
0.1
0.7
3
1.2
1.4
54
Sulphide
11.6
1.5
580
7.0
1.2
280
18.7
1.4
860
Total
12.7
1.5
631
7.2
1.2
283
19.9
1.4
913
Brolga
Oxide
3.3
1.5
159
0.1
0.8
2
3.4
1.5
161
Sulphide
42.7
1.3
1,823
16.1
1.0
523
58.9
1.2
2,346
Total
46.0
1.3
1,982
16.2
1.0
525
62.2
1.3
2,507
Crow
Oxide
1.2
1.2
47
0.0
0.7
1
1.3
1.2
47
Sulphide
23.0
1.1
827
7.6
1.2
287
30.6
1.1
1,114
Total
24.3
1.1
874
7.6
1.2
288
31.9
1.1
1,162
Diucon
Oxide
0.2
1.9
10
0.2
1.1
8
0.4
1.4
18
Sulphide
37.0
1.3
1,574
20.1
1.4
910
57.0
1.4
2,484
Total
37.1
1.3
1,584
20.3
1.4
918
57.4
1.4
2,502
Eagle
Oxide
0.2
1.7
8
0.0
0.8
1
0.2
1.6
9
Sulphide
19.5
1.2
743
25.5
1.4
1,171
45.0
1.3
1,913
Total
19.7
1.2
751
25.5
1.4
1,171
45.2
1.3
1,922
Falcon
Oxide
1.9
1.8
111
0.0
0.0
0
1.9
1.8
111
Sulphide
24.1
1.2
946
12.0
1.0
393
36.0
1.2
1,338
Total
26.0
1.3
1,056
12.0
1.0
393
37.9
1.2
1,449
Hemi
Mining
Centre
Oxide
7.8
1.5
386
0.5
0.9
15
8.3
1.4
400
Sulphide
158.0
1.3
6,493
88.3
1.3
3,563
246.2
1.2
10,056
Total
165.8
1.3
6,878
88.8
1.3
3,577
254.5
1.3
10,456
De Grey Minin De Grey Mining 2024 Annual Report | 133
Withnell Mining Centre
Deposit
Type
Measured
Indicated
Inferred
Total
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Withnell
OP
Oxide
0.6
1.4
28
0.4
1.2
14
0.2
1.1
5
1.1
1.3
48
Sulphide
0.6
1.6
33
2.7
1.9
163
0.5
2.2
38
3.8
1.9
235
Total
1.3
1.5
62
3.0
1.8
178
0.7
2.0
43
5.0
1.8
283
Withnell
UG
Oxide
0.0
0.0
0
0.0
0.0
0
0.0
2.5
0
0.0
2.5
0
Sulphide
0.0
0.0
0
0.1
4.3
16
2.4
3.9
301
2.5
3.9
317
Total
0.0
0.0
0
0.1
4.3
16
2.4
3.9
301
2.5
3.9
317
Mallina
Oxide
0.0
0.0
0
0.5
1.3
20
1.2
1.4
53
1.7
1.3
73
Sulphide
0.0
0.0
0
1.1
1.2
44
3.9
1.5
190
5.1
1.4
234
Total
0.0
0.0
0
1.6
1.2
64
5.1
1.5
243
6.8
1.4
307
Toweranna
OP
Oxide
0.0
0.0
0
0.3
1.5
13
0.1
1.6
4
0.4
1.5
18
Sulphide
0.0
0.0
0
7.6
1.6
384
1.9
1.4
85
9.6
1.5
469
Total
0.0
0.0
0
7.9
1.6
397
2.0
1.4
89
9.9
1.5
487
Toweranna
UG
Oxide
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
Sulphide
0.0
0.0
0
0.3
3.0
24
0.7
3.0
68
0.9
3.0
92
Total
0.0
0.0
0
0.3
3.0
24
0.7
3.0
68
0.9
3.0
92
Camel
Oxide
0.2
2.8
16
0.3
2.6
27
0.0
1.1
2
0.5
2.6
45
Sulphide
0.0
2.1
1
0.1
1.4
6
0.1
1.8
9
0.3
1.7
16
Total
0.2
2.8
17
0.5
2.2
33
0.2
1.7
10
0.8
2.2
60
Calvert
Oxide
0.0
0.0
0
0.4
1.3
18
0.1
0.8
1
0.5
1.3
19
Sulphide
0.0
0.0
0
0.6
1.3
24
0.2
1.2
9
0.8
1.3
33
Total
0.0
0.0
0
1.0
1.3
42
0.3
1.2
11
1.3
1.3
52
Roe
Oxide
0.1
2.7
5
0.1
1.5
6
0.1
1.6
6
0.3
1.8
17
Sulphide
0.0
2.5
1
0.1
2.3
5
0.2
2.2
15
0.3
2.2
21
Total
0.1
2.7
6
0.2
1.8
11
0.3
2.0
20
0.6
2.0
38
Dromedary
Oxide
0.1
2.2
7
0.0
1.6
1
0.0
1.6
2
0.2
1.9
11
Sulphide
0.0
0.0
0
0.0
1.6
2
0.1
1.8
5
0.1
1.7
6
Total
0.1
2.2
7
0.1
1.6
3
0.1
1.7
7
0.3
1.9
17
Leach Pad
Oxide
0.0
0.0
0
0.9
0.7
19
0.0
0.0
0
0.9
0.7
19
Sulphide
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
Total
0.0
0.0
0
0.9
0.7
19
0.0
0.0
0
0.9
0.7
19
Hester
Oxide
0.0
0.0
0
0.0
2.1
3
0.0
1.3
1
0.1
1.8
4
Sulphide
0.0
0.0
0
0.0
2.1
1
0.0
1.4
2
0.1
1.6
3
Total
0.0
0.0
0
0.1
2.1
4
0.1
1.4
3
0.1
1.7
7
Withnell
Mining
Centre
Oxide
1.0
1.8
58
2.9
1.3
122
1.7
1.3
75
5.6
1.4
255
Sulphide
0.7
1.7
35
12.6
1.6
669
10.2
2.2
722
23.5
1.9
1,426
Total
1.6
1.8
92
15.6
1.6
792
11.9
2.1
797
29.1
1.8
1,681
De Grey Minin De Grey Mining 2024 Annual Report | 134
Wingina Mining Centre
Deposit
Type
Measured
Indicated
Inferred
Total
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Wingina
Oxide
2.7
1.8
152
0.6
1.3
27
0.3
1.3
14
3.7
1.6
193
Sulphide
0.4
1.6
21
0.3
1.5
16
1.1
1.7
57
1.8
1.6
94
Total
3.1
1.7
173
1.0
1.4
43
1.4
1.6
72
5.5
1.6
288
Mt
Berghaus
Oxide
0.0
0.0
0
0.7
1.8
39
1.0
1.1
36
1.7
1.4
75
Sulphide
0.0
0.0
0
0.3
1.7
14
2.4
1.2
92
2.7
1.2
106
Total
0.0
0.0
0
1.0
1.7
53
3.4
1.2
128
4.3
1.3
181
Amanda
Oxide
0.0
0.0
0
0.5
1.3
22
0.9
0.9
25
1.4
1.0
46
Sulphide
0.0
0.0
0
0.1
1.8
4
0.6
1.1
19
0.6
1.2
23
Total
0.0
0.0
0
0.6
1.4
26
1.4
0.9
44
2.0
1.1
70
Wingina
Mining
Centre
Oxide
2.7
1.8
152
1.8
1.5
88
2.2
1.1
75
6.7
1.5
315
Sulphide
0.4
1.6
21
0.7
1.6
35
4.0
1.3
168
5.1
1.4
224
Total
3.1
1.7
173
2.5
1.5
122
6.3
1.2
243
11.9
1.4
538
De Grey’s mineral resources and ore reserves are subject to governance arrangements and internal controls which
include annual review of mineral resource and ore reserve reports and where appropriate, utilisation of
independent experts to compile and review mineral resource and ore reserve reports.
De Grey Minin De Grey Mining 2024 Annual Report | 135
Comparison to Previous Hemi Mineral Resource Estimate
The Mineral Resource Estimate (MRE) update for Hemi was completed in November 2023, and contained 9,068k
ounces in open-cut resources and 1,388k ounces in underground resources, for a total of 10.5M ounces.
Comparisons between the November 2023 and June 2023 MREs are provided in the tables below.
Hemi - Mineral Resource statement comparison for open-cut resource above -320 mRL
(>0.3 g/t Au).
Category
November 2023
June 2023
Increase
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Measured
Indicated
165.3
1.29
6,859
165.2
1.29
6,856
0%
0%
0%
Inferred
61.0
1.13
2,210
50.5
1.02
1,661
21%
10%
33%
TOTAL
226.2
1.25
9,068
215.8
1.23
8,517
5%
2%
6%
Hemi - Mineral Resource statement comparison for underground resource below -320
mRL (>1.0 g/t Au).
Category
November 2023
June 2023
Increase
Mt
g/t
koz
Mt
g/t
koz
Mt
g/t
koz
Measured
Indicated
Inferred
28.3
1.52
1,388
20.7
1.49
991
37%
2%
40%
TOTAL
28.3
1.52
1,388
20.7
1.49
991
37%
2%
40%
Note that the insignificant amount of Indicated resources below -320 mRL for the November and June 2023 model have been included in Inferred.
The Indicated resources of the Hemi MRE occurs within the Open Pit classification to a depth of 390m from surface.
The recent drilling program concentrated on extending resources below and along strike of defined DFS pit shells
with the potential for resource extensions to be included in future open-pit and underground mining plans.
De Grey Minin De Grey Mining 2024 Annual Report | 136
COMPETENT PERSON STATEMENT
Exploration Results
The information in this report that relates to Exploration Results is based on, and fairly represents information
and supporting documentation prepared by Mr. Phil Tornatora, a Competent Person who is a Member of The
Australian Institute of Geoscientists. Mr. Tornatora is an employee of De Grey Mining Limited. Mr. Tornatora has
sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to
the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian
Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr. Tornatora consents to the
inclusion in this report of the matters based on his information in the form and context in which it appears.
Ore Reserves - Hemi
The information in this report that relates to Ore Reserves at the Hemi Gold Project is based on and fairly
represents information and supporting documentation compiled by Mr Quinton de Klerk, a Competent Person
who is a full-time employee of Cube Consulting Pty Ltd, a company engaged by De Grey. Mr de Klerk is a Fellow
of the Australasian Institute of Mining and Metallurgy. Mr de Klerk has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (2012 JORC Code). Mr de Klerk consents to the inclusion in the report
of the matters based on his information in the form and context in which it appears.
Mineral Resources - Hemi
The Information in this report that relates to Hemi Mining Centre and Toweranna Mineral Resources is based
on information compiled by Mr. Michael Job, a Competent Person who is a Fellow of the Australasian Institute of
Mining and Metallurgy. Mr Job is a full-time employee of Cube Consulting. Mr Job has sufficient experience that
is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Job consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
Mineral Resources - Regional
The Information in this report that relates to Wingina and Withnell Mining Centre Mineral Resources
(excluding Toweranna) is based on information compiled by Mr Callum Browne, a Competent Person who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr Browne is a full-time employee of De Grey
Mining Limited. Mr Browne has sufficient experience that is relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Browne consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
De Grey Minin De Grey Mining 2024 Annual Report | 137
Forward Looking Statements
These materials prepared by De Grey Mining Limited (or the “Company”) include forward looking statements.
Often, but not always, forward looking statements can generally be identified by the use of forward looking words
such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar
words and may include, without limitation, statements regarding plans, strategies and objectives of management,
anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance and achievements to differ materially from any future results,
performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices,
foreign exchange fluctuations and general economic conditions, increased costs and demand for production
inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary
licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the
regulatory framework within which the Company operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and
litigation.
Forward looking statements are based on the Company and its management’s good faith assumptions relating to
the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business
and operations in the future. The Company does not give any assurance that the assumptions on which forward
looking statements are based will prove to be correct, or that the Company’s business or operations will not be
affected in any material manner by these or other factors not foreseen or foreseeable by the Company or
management or beyond the Company’s control.
Although the Company attempts and has attempted to identify factors that would cause actual actions, events, or
results to differ materially from those disclosed in forward looking statements, there may be other factors that
could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended,
and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to
place undue reliance on forward looking statements. Forward looking statements in these materials speak only at
the date of issue. Subject to any continuing obligations under applicable law or any relevant securities exchange
listing rules, in providing this information the Company does not undertake any obligation to publicly update or
revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on
which any such statement is based.
De Grey Minin De Grey Mining 2024 Annual Report | 138
SCHEDULE OF INTERESTS IN MINING TENEMENTS
Project/Location
Country
Tenement
Percentage
held/earning
Hemi Gold Project
Australia
E47/891
100%
Hemi Gold Project
Australia
E45/2533
100%
Hemi Gold Project
Australia
E45/2364
100%
Hemi Gold Project
Australia
E45/2983
100%
Hemi Gold Project
Australia
E45/2995
100%
Hemi Gold Project
Australia
E45/3390
100%
Hemi Gold Project
Australia
E45/3391
100%
Hemi Gold Project
Australia
E45/3392
100%
Hemi Gold Project
Australia
E45/5140
100%
Hemi Gold Project
Australia
E45/4751
100%
Hemi Gold Project
Australia
E45/5808
100%
Hemi Gold Project
Australia
E47/3552
100%
Hemi Gold Project
Australia
E47/3553
100%
Hemi Gold Project
Australia
E47/3554
100%
Hemi Gold Project
Australia
E47/3750
100%
Hemi Gold Project
Australia
E47/4565
100%
Hemi Gold Project
Australia
P45/3029
100%
Hemi Gold Project
Australia
P47/1866
100%
Farno-McMahon
Australia
E47/2502
75%¹
Hemi Gold Project
Australia
E47/2720
100%
Hemi Gold Project
Australia
E47/3504
100%
Hemi Gold Project
Australia
M47/473
100%
Hemi Gold Project
Australia
M47/474
100%
Hemi Gold Project
Australia
M47/475
100%
Hemi Gold Project
Australia
M47/476
100%
Hemi Gold Project
Australia
M47/477
100%
Hemi Gold Project
Australia
M47/480
100%
Hemi Gold Project
Australia
L45/578
100%
Hemi Gold Project
Australia
L47/164
100%
Hemi Gold Project
Australia
L47/165
100%
Hemi Gold Project
Australia
L45/597
100%
Hemi Gold Project
Australia
L45/599
100%
Hemi Gold Project
Australia
L45/600
100%
Hemi Gold Project
Australia
L45/605
100%
Hemi Gold Project
Australia
L45/642
100%
Hemi Gold Project
Australia
L47/1016
100%
Hemi Gold Project
Australia
L47/1029
100%
Hemi Gold Project
Australia
L47/1048
100%
Hemi Gold Project
Australia
L47/1049
100%
Hemi Gold Project
Australia
L47/1070
100%
Hemi Gold Project
Australia
L47/1071
100%
Hemi Gold Project
Australia
L47/971
100%
Hemi Gold Project
Australia
L47/972
100%
Hemi Gold Project
Australia
L47/973
100%
Hemi Gold Project
Australia
L47/976
100%
De Grey Minin De Grey Mining 2024 Annual Report | 139
Project/Location
Country
Tenement
Percentage
held/earning
Hemi Gold Project
Australia
L47/977
100%
Hemi Gold Project
Australia
E47/3399
100%
Hemi Gold Project
Australia
E47/3428
100%
Hemi Gold Project
Australia
E47/3429
100%
Hemi Gold Project
Australia
E47/3430
100%
Hemi Gold Project
Australia
P47/1732
100%
Hemi Gold Project
Australia
P47/1733
100%
Hemi Gold Project
Australia
M47/1626
100%
Hemi Gold Project
Australia
M47/1628
100%
Hemi Gold Project
Australia
M45/1294
100%
Hemi Gold Project
Australia
M45/1295
100%
Hemi Gold Project
Australia
M45/1299
100%
Hemi Gold Project
Australia
E45/5600
100%
Hemi Gold Project
Australia
E45/6098
100%
Hemi Gold Project
Australia
E47/4916
100%
Hemi Gold Project
Australia
E47/4917
100%
Hemi Gold Project
Australia
E47/4925
100%
Hemi Gold Project
Australia
E47/4926
100%
Hemi Gold Project
Australia
L45/604
100%
Hemi Gold Project
Australia
L45/612
100%
Hemi Gold Project
Australia
L45/766
100%
Hemi Gold Project
Australia
L47/1110
100%
Hemi Gold Project
Australia
L47/1111
100%
Hemi Gold Project
Australia
P47/2029
100%
Egina Gold Project
Australia
E45/4948
0%
Egina Gold Project
Australia
E47/3318
0%
Egina Gold Project
Australia
E47/3321
0%
Egina Gold Project
Australia
E47/3625
0%
Egina Gold Project
Australia
E47/3646
0%
Egina Gold Project
Australia
E47/3673
0%
Egina Gold Project
Australia
E47/3712
0%
Egina Gold Project
Australia
E47/3773
0%
Egina Gold Project
Australia
E47/3774
0%
Egina Gold Project
Australia
E47/3775
0%
Egina Gold Project
Australia
E47/3776
0%
Egina Gold Project
Australia
E47/3780
0%
Egina Gold Project
Australia
E47/3782
0%
Egina Gold Project
Australia
E47/3783
0%
Egina Gold Project
Australia
E47/3812
0%
Egina Gold Project
Australia
E47/3945
0%
Egina Gold Project
Australia
E47/3962
0%
Egina Gold Project
Australia
E47/3963
0%
Egina Gold Project
Australia
E47/4056
0%
Egina Gold Project
Australia
L47/776
0%
Egina Gold Project
Australia
M47/560
0%
Egina Gold Project
Australia
M47/561
0%
De Grey Minin De Grey Mining 2024 Annual Report | 140
Project/Location
Country
Tenement
Percentage
held/earning
Ashburton Project
Australia
E52/1941
0%
Ashburton Project
Australia
E52/3024
0%
Ashburton Project
Australia
E52/3025
0%
Ashburton Project
Australia
E52/4052
0%
Ashburton Project
Australia
M52/639
0%
Ashburton Project
Australia
M52/640
0%
Ashburton Project
Australia
M52/734
0%
Ashburton Project
Australia
M52/735
0%
De Grey has earned a 75% interest in the joint venture agreement with Farno McMahon Pty Ltd (owned 100% by
Novo Resources Corp) details of the agreement can be found in Note 28.